Busted: Bankers and The Global Economy

June 20, 2011

Bernanke to Invent New Term for Printing Money

Filed under: banking, central bank, corporatism, economy, federal reserve, government, inflation, money — digitaleconomy @ 10:27 am

When the U.S. Bureau of Labor and Statistics (BLS) reported their latest consumer price index (CPI) inflation data last week, everybody in the mainstream media worked tirelessly to spin the data in order to proclaim that U.S. price inflation is not a problem. It’s been that way for some time now. Most articles in the media reported that inflation slowed in May due to falling gas prices. The truth is, gas prices rose last month and U.S. price inflation is spiraling out of control.

Price inflation based on the CPI on a year-over-year basis rose during the month of May to 3.57%, up from 3.16% in April, 2.68% in March, 2.11% in February, 1.63% in January, 1.5% in December, and 1.1% in November. The official rate of price inflation has more than tripled over the past 6 months. Yes, maybe the rate of year-over-year price inflation rose by slightly less in May over April, than it did in April over March, but this isn’t good news at all. This U.S. dollar is still rapidly losing its purchasing power and the rate at which it is declining in purchasing power is accelerating.

On an unadjusted basis, gas prices rose 3.6% in the month of May. The media is reporting gas prices based on the BLS’s seasonal adjustments. Only with the BLS’s deceptive seasonal adjustments did gas prices decline by 2% in the month of May. The BLS’s seasonal adjustments will actually reverse starting in the month of July and add to reported gasoline prices. NIA predicts that come August when the BLS releases its July CPI report, the media will begin focusing on unadjusted gasoline prices because the unadjusted gain will be less than the adjusted one. The media always reports the data that supports their agenda and ignores the data that works against it.

The media is obviously just saying what the U.S. government wants them to say. Larry Summers, a Keynesian economist who served for 5 years last decade as President of Harvard and was up until late-2010 director of President Obama’s White House National Economic Council, just said last week that, “the underlying rate of inflation is still trending downwards”. The media’s favorite economist Paul Krugman, a Keynesian who has an op-ed column in the New York Times, said last week that, “There’s really nothing here to shake my view that deflation, not inflation, is the threat.”

Krugman, who has been calling for massive price deflation the whole entire time that NIA has been predicting massive price inflation, is refusing to admit he has been wrong and is telling all Americans to ignore rapidly rising food and energy prices because he claims they are too volatile. He is telling the world to focus solely on the core CPI, which ignores food and energy, the two items that Americans need most to live and survive. Core CPI is weighed heavily by rents and America’s Real Estate bubble still isn’t finished deflating. The only purpose of having a core CPI  is to use it to mislead Americans and deceive them into believing that inflation is not a problem.

nixon greenspanCore CPI was an invention of the Nixon administration, which right there should tell you all you need to know about it. President Nixon’s idea for creating core CPI, was to deceive Americans about price inflation by excluding the items that were rising the most, which he would justify by calling these items “too volatile”. NIA has predicted from the very beginning that inflation will not effect all goods and services equally and that as inflation begins to spiral out of control, inflation would gravitate most towards the prices of the items that Americans need the most, and there is nothing that Americans need more than food and agricultural products, and to a lesser extent energy.

Whenever the mainstream media reports about global inflation and they show a map of the world, the map always shows massive inflation in Middle Eastern and Asian countries, with the U.S. having the least price inflation. The truth is, inflation in Middle Eastern and Asian countries isn’t many times worse than the U.S., it is just that their governments are many times more honest and aren’t as advanced in manipulating economic statistics as our government is. While all of the headlines from major American news organizations about U.S. inflation said last week that inflation is slowing and not a problem, those same news organizations wrote articles about Chinese inflation being at a new 34-month high of 5.5%. The fact is, official U.S. price inflation is also at its highest level in nearly three years and our real price inflation rate is actually higher than China’s reported rate of price inflation.

Based on the BLS’s CPI, year-over-year U.S. price inflation in the month of May of 3.57% was the highest year-over-year price inflation rate since October of 2008, right before the global financial crisis. If it wasn’t for the global financial crisis of late-2008/early-2009 and the world’s mistake of liquidating real assets and hoarding fiat U.S. dollars as a safe haven, it is likely that the official rate of U.S. price inflation would already be in the double-digits today. NIA estimates the real rate of U.S. price inflation, minus geometric weighting and hedonics, to currently be approximately 7.5% on a year-over-year basis. It is possible that the real U.S. price inflation rate will reach double digits in the second half of 2011. That will be devastating to the U.S. economy because at that point it will just about guarantee that the Federal Reserve will have to raise the federal funds rate to north of 10% by the middle of this decade.

The Federal Reserve’s balance sheet just reached a brand new record of $2.832 trillion, up from $2.815 trillion in the prior week, as we approach the end of QE2 at the end of June. The stock market is already anticipating the end of QE2 with the Dow Jones currently down over 900 points from its high at the end of April. The declining stock market is pretty much sowing the seeds for a QE3. After all, Federal Reserve Chairman Ben Bernanke doesn’t want to see the phony U.S. economic recovery blow up in smoke.

Bernanke will do everything possible to disguise QE3 and will never admit to there being a QE3. Remember, this is the same Federal Reserve Chairman who lied to every single American on ’60 Minutes’ when he said, “We’re not printing money.” That is exactly what QE2 is, printing money, but just like how Bernanke won’t admit to printing money, Bernanke is now going to retire the term “quantitative easing” and come up with a new term for the Fed’s latest destructive policy of creating massive monetary inflation.

Advertisements

June 15, 2011

US economist predicts economic storm in 2013

devalued dollarA “perfect storm” of fiscal woes in the United States, a slowdown in China, the debt crisis in Europe and stagnation in Japan has a decent chance of damaging the global economy by 2013, Roubini told reporters late last week. Even so, he is being quite conservative about it. A 33% chance doesn’t seem like news to me. All this by New York University professor Nouriel Roubini, who correctly predicted the global economic crisis in 2008.

According to Mr. Roubini, the world economy expansion may slow in the second half of this year as “the deleveraging process continues, fiscal stimulus is withdrawn and confidence ebbs.”  To me, this seems obvious. This process is really part of what is already happening. It’s not news. The job market stinks in the U.S. and other modern nations. Money isn’t being made abundantly in the real economy. It’s all on Wall Street and in the investment world, based on heavy borrowing and debt restructuring of nations based on fiat money. Washington has been unwilling to deal with a one-trillion-plus budget deficit and a distinct bond market revolt is in the wings. Investors are waking up to the danger to their investment as US bonds are in danger of becoming junk. This will create higher interest rates and possible hyperinflation, which will remove any possibility of a recovery, even resulting the destruction of the dollar for an international medium of exchange. The bankers aren’t truly bothered by this. Based on inside information, the bankers already have a plan in the wings that I have touched on previously. It’s all about marketing, presentation to them.

Already, we have riots in Greece, as they face the music regarding the bad debt that the nation and bankers have created. They claim that officials need to restructure the debt of Greece, Ireland and Portugal. Waiting too long will ultimately result in the disintegration of the euro zone stability, experts say. Roubini agrees. The ridiculous aspect to the entire scenario is that all banking debt in the current system that is created will never be paid back. Further, much of this debt has been cleverly folded into Wall Street investments with the idea of making money, either through long or short selling. But this does not solve the problem of any debt unless the nations involved have the ability to make money by having control. They don’t. Only the bankers make money on any debt. In the meantime, these nations are paying on interest, not on principal. It’s stupid. The spiral never ends. Roubini and most economists remain silent on this aspect of the system.

Many other analysts, like myself,  have repeatedly warned of a “possible” repeat of the 2008 global economic meltdown in the immediate future. Others, like Moscow financial expert Alexander Osin expresses hope that the international community will be able to find the way out. Russian economist Konstantin Sonin  warns against overdramatizing the situation since people like Roubini are full of it, false prophets, in essence. The solution?

“The world economy faced such a problem in the 1930s,” Osin says, adding that Adolf Hitler’s ascent to power and the beginning of World War Two helped to resolve the problem. “At present, it should be solved by peaceful means, which the global community is almost certain to find.” Certainly, the Russians and Arabs are doing quite well since they are sitting on oil profits. That will only last as long as the current monetary gaming system does. That is the problem behind the whole matter. An eternal debt-based banking system destroys the nations that depend on it unless they are sitting on huge cash cow. Rest assured, that is temporary. If they are doing business with the bankers, the banking system will drain that wealth too. That is the nature of the system in place, as well as the nature of the future system.

So, to solve the problem we need a global war and preferably another Hitler. In the meantime, resolving the monetary system crisis is all about “hope,” and now we are listening to Russians for economic advice. The global economy really is in trouble. There won’t be any gain without plenty of pain. Never mind the pain that so many are in now.

E. Manning

May 2, 2011

China Considering Dumping US Investments

The U.S. dollar continues to slide in value as out of control spending continues. China, the largest holder of U.S. debt, is considering dumping two-thirds the dollar reserves that it holds, to the tune of about $3.04 trillion.

According to a report from China’s Xinhua news agency, a member of the Chinese central bank’s monetary policy committee is recommending that Beijing reinvest its foreign exchange reserves. Other Chinese financial authorities confided at a forum in Beijing that China’s current U.S. holdings are too high. The governor of China’s central bank has said that China’s foreign exchange reserves are excessive and that Beijing should begin to diversity its vast pool of dollars.

While American corporations have led the world in economic growth for more than a century, China’s government has had enough business sense to become the world’s second largest economic power. China is on target to overtake the U.S. economy.

Central bankers and many investors want to unplug the dollar as the international mainstay of finance. China wants its currency to play a more dominant role in the global economy, dumping the dollar (treasuries) as a viable investment, since the Federal Reserve is addicted to printing money, which further devalues the dollar to keep the current global money scene afloat.

April 3, 2011

The World’s Greatest Ponzi Scheme

Filed under: central bank, credit, economy, government, inflation, money, recession — Tags: , , , , , , , — digitaleconomy @ 9:11 pm

house of cardsIn the month of March, the U.S. government spent more than eight times its monthly tax receipts, including money spent for maturing U.S. treasuries.

The U.S. treasury cleared $128.18 billion in tax receipts during the month of March, but paid out a total of $1.05 trillion, which included $49.8 billion in Social Security benefits, $47.4 billion in Medicare benefits, $22.58 billion in Medicaid benefits and $37.9 billion in defense spending. The real financial beating springs from maturing U.S. treasuries where the U.S. paid out $705.3 billion.

In order for the U.S. government to stay afloat with only $128.18 billion in tax receipts, it had to spend $72.5 billion from the balance of cash on hand. This closed the month at $118.1 billion, including the sales of $18 billion worth of TARP assets. Most importantly, the U.S. treasury had to sell $786.5 billion in new treasury bonds, which it will be required to mature at a still higher in the future in order to keep the shirt of its’ back. Surely this is the greatest Ponzi scheme ever executed on the world as the government endlessly seeks to outrun the debt that it creates. The nation is able to fund government expenditures and pay off maturing debt instruments by issuing new and larger amounts of debt. Up to now the Federal Reserve interest has made this debacle survivable.

At this time the interest payments on the United States national debt is the government’s largest monthly expenditure. The world is waking up to the fact that the U.S. government is truly insolvent and that the benefits of propping up the U.S. dollar will no longer be worth the expense to foreign creditors. The U.S. government Ponzi scheme is being exposed for the world to see.

China is becoming more reluctant to continue buying U.S. treasuries as it positions the yuan to be the world’s new reserve currency. Japan needs to raise $300 billion to rebuild parts of their country that were destroyed by the earthquake, tsunami, and nuclear disaster. They will be unable to invest handily in the U.S. or may opt to invest outright in China as money is available. The U.S. desperately needs Japan and the Arab world to roll over national treasuries into larger amounts of new ones. With Arab revolutions taking place across major Saudi states and the U.S. occupying Libya for no good reason at all, the nation is likely see a global disdain for its previously valued treasures that it must sell to cope with the runaway spending and deficits of Congress.

March 30, 2011

U.S. Geithner Shocks Global Markets by Supporting International Currency

Filed under: business, central bank, corporatism, economy, federal reserve, inflation, politics — digitaleconomy @ 6:49 am

devalued dollarThe plight of the dollar and recent national inflation is making the United States quite shaky for a long-term economic recovery. The powers that be haven’t helped matters. Recently, economic adviser Timothy Geithner has been suggesting that a global currency sponsored by the IMF is desirable. This earth shaking statement caused the dollar to plunge instantly against the euro, yen, and sterling as the comments flashed across trading screens. The fact that anyone of importance is considering dumbing down the dollar is causing great fear and not a little doubt. The mainstream media in the United States has tried to quiet the news by keeping it out of the news.

Barack Obama, in a prime-time press conference on March 25, had at first ignored a question about the subject and, when it was put to him responded tersely: “I don’t believe that there’s a need for a global currency.”

Mr Geithner later qualified his remarks, insisting that the dollar would remain the “world’s dominant reserve currency … for a long period of time” but the seeds of doubt have been sown.

The markets appear baffled by the confused statements emanating from Washington. President Barack Obama told a new conference hours that there is no threat to the reserve status of the dollar.

“I don’t believe that there is a need for a global currency. The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world”

January 27, 2011

U.S. Mortgage Crisis Tensions Build

A commission was appointed to look into misconduct regarding the national mortgage and banking crisis, signed into being by President Obama on May 20, 2009. The 10-member panel is after any person that may have violated the laws of the United States in relation to the crisis. The scuttlebutt is that a number of financial industry figures and corporations have been found lacking and are being referred for prosecution. All of this portends to make quite a bit of news in the near future.

The media has been working hard at divining any sources of information. The New York Times claims to have obtained a copy of a 576-page report, concluding that the financial disaster was avoidable while laying blame on federal regulators for the failure to act on knowledge of shoddy mortgage lending and reckless risk taking. Keep in mind that at least some of these shoddy practices continue behind the scenes, building on a proliferating number of foreclosures in the United States.

The idea that politicians hope to project is that the financial crisis is being resolved. The truth is that the national financial crisis is just getting underway.

January 18, 2011

Powers That Be & America

1. The IRS is NOT a U.S. Government Agency. It is an Agency of the IMF.
Sources: Diversified Metal Products v IRS et al. CV-93-405E-EJE
U.S.D.C.I.
Public Law 94-564
Senate Report 94-1148, pg 5967
Reor ganization Plan #26
Public Law 102-391

2. The IMF is an Agency of the U.N. and was organized in 1944 at Bretton Woods, N.H. well before WWII was concluded.
Source: Black’s Law Dictionary 6th Ed. Pg 816

3. The United States has NOT had a Treasury since 1921.
41 Stat. Ch. 214 page 654

4. The U.S. Treasury is now the IMF.
Presi dential Documents Volume 29 No. 4 page 113
Source: 22 U.S.C. 285-288

5. The U.S. does not have any employees because there is no longer
a United States. No more reorganizations. After 200 years of bankruptcy it is finally over.
Source: Executive Order 12803

6. The FCC, CIA, FBI, NSA and all of the other Alphabet Gangs were
never part of the U.S. Government, even though the ‘U.S. Government
held stock in said ‘Agencies.
Sources: U.S. v. Strang, 254 U.S. 491
Lewis v. U.S., 680 F.2d, 1239

7. Social Security Numbers are issued by the UN through the IMF. The application for a SSN is the SS5 form. The Department of the Treasury (IMF) issues the SS5, not the ‘Social Security Administration. The new SS5 forms do not state who publishes them while the old form states they are Department of Treasury.
Source: 20 CFR Chap. 111 Subpart B 422.103 (b)

8. There are NO Judicial Courts in America and there have not been any in America since 1789.
Judges do NOT enforce Statutes and Codes. “Executive Administrators” enforce Statutes and Codes. Thus, the “Uniform Commercial Code” is the supreme law of the courts, NOT the U.S. Constitution.
Sources: FRC v. GE, 281 U.S. 464
Keller v. Potomac Elec. Co., 261 U.S. 428
1 Stat. 138-178

9. There have NOT been any ‘Judges’ in America since 1789.
There have only been “Executive Administrators”. (Now you know why “judges” will hold you in “contempt” if you cite the U.S. Constitution in their presence.)
Sources: FRC v. GE, 281 U.S. 464
Keller v. Potomac Elec. Co., 261 U.S. 428
1 Stat. 138-178

10. According to GATT provisions, you MUST have a Social Security Number.
Source: House Report 103-826

11. New York City is defined in the Federal Regulations as the “United Nations”. Rudolph Guiliani stated on C-Span that “New York City is the Capital of the World”. For once, he told the truth.
Source: 20 CFR Chap. 111 subpart B 422.103 (b) (2) (2)

12. Social Security is NOT insurance nor is it a binding contract. Nor is there a “Trust Fund”.
Source: Helvering v. Davis, 301 U.S. 619
Steward Co. v. Davis, 301 U.S. 548

13. Your Social Security check comes directly from the International Monetary Fund (IMF) which is a “for profit corporate agency” of the United Nations. Examine one SS Check: top-left should be written ‘United States Treasury
see 2-4 above.

14. You actually own NO property. Slaves can’t own property, you see. Read carefully the Deed to the property you think is yours. You are listed as “a TENANT”. Often times the Mortgage Holder or the State is listed as “Seised in demesne as of fee”.
Source: Senate Document 43, 73rd Congress 1st Session

( What is “Seised in demesne as of fee” and what does this Latin Legal term mean? This is the strict technical legal expression used to describe the ownership in “an estate in fee-simple in possession in a corporeal hereditament”. The word “seised” is used to express the “seisin or owner’s possession of a freehold property”; the phrase ‘in demesne’, or ‘in his demesne’, (in dominico suo) signifies that he’s seised as owner of the land itself, and not merely of the seigniory services; and the concluding words, ‘as of fee, import that he is seised of an estate of inheritance in fee-simple. Where the subject is incorporeal, or the estate expectant on a precedent freehold, the words ‘in his demesne are omitted. Source: (Co. Litt. 17a; Fleta, 1.5, c. 5, 18; Bract. 1.4, tr. 5, c. 2, 2) Brown. “Black’s Law Dictionary
Fourth Edition, page 1523.

15. The most powerful court in America is NOT the United States Supreme Court, but the Supreme Court of Pennsylvania.
Source: 42 Pa. C.S.A. 502

16. The King of England financially backed both sides of the RevolutionaryWar.
Source: Treaty of Versailles. Signed July 16, 1782
Treaty of Peace 8 Stat. 80

17. You CANNOT use the U.S. Constitution to defend yourself because you are NOT a party to it.
Source: Padelford Fay & Co. v. The Mayor & Alderman of the City of Savannah, 14
Georgia 438, 520

18. America is a British Colony. The ‘United States’ is a corporation, not a land mass and it existed before the Revolutionary War and the occupying British Troops did not leave until 1796.

Sources: Respublica v. Sweers, 1 Dallas 43
Treaty of Commerce 8 Stat 116
Treaty of Peace 8 Stat 80
IRS Publication 6209
Articles of Association October 20, 1774

19. Britain is owned by the Vatican.
Source: Treaty of 1213

20. The Pope can therefore abolish any law in the United States.
Source: Elements of Ecclesiastical Law Vol. 1, 53-54

21. A 1040 Form is for Tribute paid to Britain.
Source: IRS Publication 6209

22. The Pope claims to own the entire planet through the laws of Conquest and Discovery. (Ever wonder why an Attorney, who is an often unwitting Agent of the Pope through the International Bar Association, wants to do “discovery” with you?)
Source: Papal Bulls of 1495 & 1493

23. The Pope has ordered the genocide and enslavement of Millions of people.
Source: Papal Bulls of 1455 & 1493

24. The Pope’s ‘Laws’ are obligatory on everyone on planet earth.
Source: Bened. XIV., De Syn. Dioec, lib, ix, c. vii., n.4. Prati, 1844
Syllabus prop 28, 29, 44

25. We are SLAVES and own ABSOLUTELY NOTHING. Not even what we think are “our children”.
Source: Tillman v. Roberts, 108 So. 62
Van Koten v. Van Koten, 154 N.E. 146
Senate Document 43, 73rd Congress 1st Session
Wynehammer v. People, 13 N.Y. Rep 378, 481

26. Military Dictator George Washington divided up the States (aka Estates) into Districts.
Source: Messages and Papers of the Presidents, Volume 1 page 99
1828 Dictionary definition of ‘Estate

27. ‘We, The People” does NOT include the General Populace, or what you THINK is ‘We, The People”.
Source: Barron v. Mayor and City Council of Baltimore, 32 U.S. 243

28. It is NOT the ‘duty of the police to protec t you. Their job is simply to protect THE STATE OR LOCAL CORPORATION and arrest “Code Breakers”.
Sources: Sapp v. Tallahassee, 348 So.2nd. 363
Reiff v. City of Philla., 477 F.Supp. 1262
Lynch v. NC Dept. of Justice, 376 S.E.2nd. 247

29. Everything in the ‘United States is up For Sale: Bridges, Roads, Water, Schools, Hospitals, Prisons, Airports, “Federal Lands”, “State (estate) Lands” etc.
Did anybody take time to check who recently bought Klamath Lake and the Arizona State Capital?
Source: Executive Order 12803

30. ‘WE THE PEOPLE’ are HUMAN CAPITAL – aka as “Goyim” to the rulers of the world.
Source: Executive Order 13037

The U.N. has financed the operations of the ‘United States Government for over 50 years and now ‘owns’ every man, woman, and child in America. The U.N. also holds all of the land of America in Fee Simple.

Understand that the United States, Britain and the Vatican are corporations are nothing but fictional entities which have been placed in your mind. National and global  slavery remains primarily because people believe in falsehood.

Older Posts »

Blog at WordPress.com.