Busted: Bankers and The Global Economy

February 4, 2011

Bernanke: Catastrophic Implications for U.S. Economy

Filed under: banking, business, corporatism, economy, federal reserve, government, money, recession — Tags: , , , , , , , , , — digitaleconomy @ 6:09 am

 

USA facing debt crisis

Ben Bernanke of U.S. Federal Reserve has warned that the failure to promptly raise the national debt ceiling would catastrophic.  This catastrophe would clearly have a negative impact on paper assets denominated in dollars and other fiat currencies.

Bernanke was blunt about the threats by some congressional Republicans to use the upcoming debt-ceiling vote as sledgehammer to force harsh spending cuts:

“I would very much urge Congress not to focus on the debt limit as being the bargaining chip in this discussion, but rather to address directly the spending and tax issues that we have to deal with in order to make progress on this fiscal situation,”

“Beyond a certain point … the United States would be forced into a position of defaulting on its debt. And the implications of that on our financial system, our fiscal policy and our economy would be catastrophic.”

It’s important to realize that Bernanke did not use his typical conservative language regarding the necessity of addressing U.S. fiscal challenges. To the contrary, he painted a bleak picture of the possible consequences of failing to act:

“… if government debt and deficits were actually to grow at the pace envisioned, the economic and financial effects would be severe. Sustained high rates of government borrowing would both drain funds away from private investment and increase our debt to foreigners, with adverse long-run effects on U.S. output, incomes, and standards of living. Moreover, diminishing investor confidence that deficits will be brought under control would ultimately lead to sharply rising interest rates on government debt and, potentially, to broader financial turmoil. In a vicious circle, high and rising interest rates would cause debt-service payments on the federal debt to grow even faster, causing further increases in the debt-to-GDP ratio and making fiscal adjustment all the more difficult.”

June 14, 2009

Recovery: New Technology and Financial Literacy With a Glimmer of Hope

There are signs that the rapid decline in economic activity of the past few quarters is slowing. Per the observation by the Federal Reserve, stabilization or improvement will begin from very low levels compared with those the levels of previous recoveries. This recovery is likely to be painfully slow and “the economy unusually vulnerable to new shocks. The news remains bad in two areas of direct importance to American families: Unemployment continues to rise and housing prices continue to decline.”

“Government-provided liquidity and guarantees remain as necessary supports in many areas. Because the collapse of these same markets set off the present crisis and the serious recession that has followed, the case for far-reaching reform appears a strong one.”

The Federal Reserve admits the fact that banks are highly leveraged, presumably due to the fractional reserve backlash in this crisis and compounded by creative banking instruments that have brought the system to its’ knees. Many bankers have been highly creative in protecting themselves from public or government scrutiny on an ongoing basis.

The Fed readily admits:

“that a malfunction in the financial industry can immediately and profoundly harm the entire economy…As we have seen to our dismay in the last year, even where such support is forthcoming, the resulting damage inflicted on the real economy by the financial sector can still be extensive, and the potential costs to taxpayers can still be high.”

financial literacyFor some time, the Federal Reserve has heralded the idea of financial literacy as if it were some ‘new technology’. Now the Fed has realized its’ own training regarding the need for a new financial literacy. The Fed now admits “that systemic risk was very much built into our financial system,” spotlighting the too-big-to-fail phenomenon as one of the most problematic systemic risks in the financial system.

Many members of the Fed now admit that we much apply ‘new technology’ to financial literacy and systemic risk in an effort to overcome the greed syndrome that has wracked U.S. and global banking for the last several decades. The problem remains that central bankers, like the Federal Reserve, are now in charge of implementing policy that can pad and perpetuate their own bottom line and purpose for existence since all central bankers are, in reality, a closed brotherhood or society devoted to their own corporate and global power in the financial system as they tap profits from their own system to benefit the global system and the shareholders of the global corporate central banking system. ~ E. Manning

April 18, 2009

The Obama Deception or More?

Note from a friend:
Hey!
I know this is long, but, you have to watch this! It is a very long documentary! The best and most informing, current, and alarming information is towards the end. Watch the whole thing! It is almost two hours long… but very informing and well worth it. Your freedoms and way of life are being torn down, bit-by-bit, and before you know it, you will be so entrenched… and neither you or I can do anything about it! We are all (the whole world) being forced into paying homage to an unseen, deplorable, and downright evil empire! Don’t believe me? Watch it!

Regardless of what you think, the current plight of the world isn’t about Obama as the film opens. John McCain in office would have yielded a similar result if you believe any of this information and if you observed Republicans and lawmakers in office during the last eight years. The history reaches farther back than that. This crisis has been a work in process. In the meantime, the information on this website generally supports the conclusions of the Obama Deception. You don’t need to be a person of faith to realize what the world is looking forward to. How you react is another matter altogether. Upcoming events may cause you to have faith in Bible prophecy and the legitimacy of the Bible.  Regardless of what you think, the “International Society of Bankers” have been very busy. Your security and well-being is not their concern. ~ E.M.

(more…)

January 28, 2008

The Global Banking Addiction

moneyillusion.jpgThe addiction to fiat money is huge. The value of this wealth on paper that circles the globe is difficult to estimate. The Bank for International Settlements guesses at $600 trillion dollars deduced by wading through tomes of data. Global gross national product is estimated at $50 trillion dollars yearly. If that figure is correct, the world is overextended by about 12 years of global production. All the credit and faith in government cannot pay for the debt that the International Society of Bankers has managed to create in the form of fiat money. The people of the world cannot pay the debt that has been created nor can the bankers except by printing more paper. How much of the debt is secured by real assets is impossible to say although a guess could be made based on the fractional reserve. Commercial banking has become addicted to creative banking procedures in an effort to create larger profits. Unfortunately, because of the complexity of a dozen creative banking instruments like SIVs and CDOs, even the best guess of the amount of real debt is probably impossible to calculate. The global banking economy is in an intimidating and complex situation.

The unease in banking and finance about subprime mortgages gives the world a tiny snapshot of what is ahead based on the current system in place. Other banking “derivatives” within the industry include private-equity, mutual funds, pension funds and hedge funds. This debt is a major issue since every piece represents a debt that must be repaid. When a creditor expects money, the demand must be met by the debtor. If enough default exists within the global banking economy or a smaller banking community, a house of cards scenario will ensue. The pursuit of the fractional reserve virtually guarantees that the global addiction to fiat money will backfire as bank write-offs for bad debt are posted.

Someone will bear the loss first. A banking conglomerate can bear catastrophic losses based on worthless credit that has been extended as debt. The infection can quickly become epidemic, much as the subprime mortgage problem spread to the entire mortgage industry and continues to proliferate in the global banking system. A collapse of the housing market along with a collapse of other asset markets is virtually inevitable based on the current global debt structure. The addiction to the illusion of money can create a global catastrophe as the International Society of Bankers actually possesses most of the gold and worthwhile assets as security including the people of the nations in debt. The slavery to this “New World Order of Banking” will become apparent to all involved. The reality is that this scenario is effectively in place. It just has not been noticed by most people yet. The reality of world addiction has not set in.

In the meantime, central banks or Federal Reserve bankers see the danger in the regional global markets and are ready to stand by with more fiat money to bolster liquidity where it is needed. Bankers require security and more often that security is becoming more speculative in nature. The International Society of Bankers has no intention of absorbing junk security. They clearly specify that they are not in the position to bail out mismanagement and malfeasance of the commercial banking and finance industry. Hyperinflation/devaluation caused by printing of more currency threatens to make some major currencies worthless. In order to overcome this plague, a redesign of the global banking and financial system seems in the immediate future. Quiet rumblings persist even now. This rumbling makes sense since national economies or even the global economy could be effectively shut down while the redesign and its negotiation are in the works. This would not only be counterproductive, but bite into further profits that the International Society of Bankers can make. In the meantime, commercial bankers are oblivious as they seek to pursue their regular course of business and profits in the hope that new global change will pass them by. ~ E.M.

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