Busted: Bankers and The Global Economy

November 7, 2010

Obama Admits Decline of US Dominance

Filed under: business, corporatism, economy, globalization, government, money, politics, recession — Tags: , , , , , , , , , — digitaleconomy @ 6:27 pm

Today, President Barack Obama said that the USA was no longer in a position to “meet the rest of the world economically on our terms.”

Speaking at a town hall meeting in Mumbai, he said,

“I do think that one of the challenges that we are going face in the US, at a time when we are still recovering from the financial crisis is, how do we respond to some of the challenges of globalization? The fact of the matter is that for most of my lifetime and I’ll turn 50 next year – the US was such an enormously dominant economic power, we were such a large market, our industry, our technology, our manufacturing was so significant that we always met the rest of the world economically on our terms. And now because of the incredible rise of India and China and Brazil and other countries, the US remains the largest economy and the largest market, but there is real competition.”

“This will keep America on its toes. America is going to have to compete. There is going to be a tug-of-war within the US between those who see globalization as a threat and those who accept we live in a open integrated world, which has challenges and opportunities.”

President Obama disagreed with those who saw globalization as evil. He did warn that protectionist impulses in the USA will get stronger if Americans don’t see trade bringing in gains for them.

“If the American people feel that trade is just a one-way street where everybody is selling to the enormous US market but we can never sell what we make anywhere else, then the people of the US will start thinking that this is a bad deal for us and it could end up leading to a more protectionist instinct in both parties, not just among Democrats but also Republicans. So, that we have to guard against.”

President Obama noted that America could not continue to promote trade at its own expense at a time when economic power in India and China is rising. “There has to be reciprocity in our trading relationships and if we can have those kind of conversations – fruitful, constructive conversation about how we produce win-win situations, then I think we will be fine.”

November 5, 2010

USA Economy: Bernanke Gets ‘Creative’

The Federal Reserve has been mandated by Congress to reduce unemployment while holding their interest rate near zero.  They plan to buy $600 billion in Treasury securities to keep prices from falling and reduce further the long-term borrowing costs, even as 8,000 commercial banks are being locked out of the money flow that could be used to begin financial healing on Main Street.

Bernanke plans to use the tools created during the recession to pump life into the USA economy. They have been projecting that the USA economy has been expanding for 15 months, but not to their satisfaction. They want the USA economy to grow at a larger rate. The reaction of the market has caused the dollar to fall and stocks to rise, as if Wall Street is a true measure of the USA economy. The focus is on Wall Street. Main Street be damned.

Bernanke hopes that he can encourage Wall Street investors to take more risks without risking inflation or encouraging price bubbles of assets by pushing the unemployment rate, which has been above 9 percent since June 2009.

Allen Sinai, the chief global economist at Decision Economics Inc. in New York claims that the Federal Reserve is not working up to standard. He criticized that they are paid to do the job more effectively, but their work is not up to standard. The fact remains that no human institution is truly equipped to deal with the crisis. We are in new economic territory with a global currency at stake, currently propped up by Wall Street as a distraction from the truth.

To push the rate of unemployment down, the central bank wants to spur the rate of US economic growth above a 2.5 annual growth rate.

October 15, 2010

US Inflation Not High Enough Says Bernanke

Wages are stalled, job numbers are anemic, prices are up and social security payments are frozen. The Fed’s policymaking committee “is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation over time to levels consistent with our mandate.” Apparently, action is needed, even though Bernanke is speaking in yesterday’s terms.

According to Bernanke, current inflation numbers are well below the Fed’s objective of 2%. He is worried about deflation caused by printing dollars. Now the Fed will print more dollars and buy securities on the back end in a sort of mock economic transaction. Inflation and Fed profits are the main concern. Inflation allows central bankers to take an additional cut of economic life blood for their services.  In the past, Bernanke has tried upselling to Wall Street. Today, many news articles are claiming that the Fed plans to tame inflation.  He expects to create inflation, but does the Fed have the control it needs to regulate that inflation?  Bernanke thinks so. Bernanke claims to believe that the Fed’s intervention will stimulate the economy, reduce unemployment and prevent deflation. Clearly, the Fed thinks they are large and in charge. This comment and others were made to show intent about “avoiding a double-dip recession.”

Chairman Ben Bernanke said this morning that the Federal Reserve is prepared to take new action to boost the economy.  Inflation has been too low of late and unemployment is poised to come down too slowly. They intend to create inflation. Are you ready for the fallout?

Meanwhile in the United Kingdom, Justice Minister Ken Clarke warned that world is “in grave danger of financial collapse.” He warned that western nations are “not out of the woods yet”…”We have rescued ourselves for the moment from being bracketed with the weaker brethren with doubts about our credit rating and the costs of our borrowing, but if we fail to deliver the kind of program we have set out we will be back there all too soon if we are not too careful.”  Clarke’s comments come only six days before the coalition government’s massive spending cuts are announced. The U.K. government argues that the cuts are necessary to restore the economy to health. Opponents claim they will push the U.K. into a double-dip recession.

 

October 14, 2010

Banks invent money out of air

The financial system is a model of fraud, now out in the Austrian newspaper, Der Standard per Viennese economist Franz Hörmann. Franz Hörmann explains the fraudulent workings of the fractional reserve banking system in this  interview.

“If one creates money out of thin air and then passes what did not exist before on charging interest and using physical assets as collateral, then that is in reality a model for expropriation (acquiring property without making any payment).”

Hörmann explains in clear language how the money system works, why the financial system is a global fraud, how the use of  balance sheets contributes to this fraud and why a gigantic crash is now approaching. He says the whole financial system could well collapse in the next three years. Hörmann argues that the time has come for a paradigm shift in the economics studies as well as in society. This is because economic studies are built on false values.

Information on how the banking system works in reality that used to be available only on websites like Infowars and Global Economy (formerly Digital Economy) have long been classified as a conspiracy theory. This knowledge is now mainstream, established as fact.

The next step can only be to call into account the various bankers and politicians that know how this system operates. They have engineered the banking subprime crisis in order to have a pretext to take liquidity out of the money supply, crash the economy, buy up assets for a pittance, get trillions in tax payer money as “bailouts” in return for worthless thin air paper debts. They demand gigantic interest payments on the national debt that they and their politicians friends have created in an exact repeat of economic events in the 1930s preceding the rise of Adolf Hitler.

The whole point is to drain the wealth of economies while subjecting the labor pool to economic servitude and slavery. The system can destroy national economies and ignite hyperinflation. This world banking system is controlled by corporate brotherhood of central bankers, generally with globalist thinking on their mind.

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October 9, 2010

World economy breaking with US

As the US economy teeters on the edge of decline and a double dip recession, emerging economies continue to grow at a fast pace, fueled by multinational corporations. This changing global economy reveals a United States that is not the center of the economic world.

Financial leaders have joined hands to decide how to boost the global economy at the annual IMF and World Bank meeting. A number of these financial leaders suggest a break up, what is known as a “de-coupling”, in the wings for a number of years, but gaining traction as the US economy stagnates. Central bankers, along with complicit US politicians, have rode the US horse into the ground and now have their eyes on the next rising star to enhance their prosperity. Most politicians advertise that the US will live forever, even though powerhouse nations through history have ebbed like the tidal flow.

The world is breaking away from the US as the consumer of last resort,” said analyst Edward Harrison, the founder of CreditWriteDowns.com. “You’ll see a lot more importance in China, in Russia.” Corporate multinationals and US politicians have raided the US economy over the last thirty years and put that stock in other economies like China, Brazil, Russia and India in the name of globalism. The view is that growth in the global economy will be much more dependent upon these countries than on the “developed economies.” Whether this is true or not remains to be seen.

Meanwhile, the US continues to run by idiot lawmakers that are afraid of multinational corporate power or are having their pockets lined behind the scenes. Like the old Roman Empire, the US seems bent on its’ own self-destruction to salve the interests of a few “leaders of men.”

August 16, 2010

The Disingenuous Timothy Geithner

On a very regular basis, Treasury Secretary Tim Geithner engages in magical thinking with deliberate attempts to delude American workers into believing that business investment and consumer demand are on the uptick. Geithner’s pretense isn’t only disingenuous and disrespectful, but dangerous. How? He continually suggests  that American consumers should feel comfortable borrowing and spending in the vain hope of spurring any hope of economic bright light.

Mr. Geithner needs to stop with the tim-foolery as these truths hang over our nation like a plague:

  • The real unemployment rate is 18.3%, instead of the 9.5% rate the administration uses.
  • The number of real unemployed workers in all four categories of unemployment is no less than 29.3 million, instead of the administration’s one-category-only figure of 14.6 million.
  • In real terms the all-important “jobs gap” is 21.3 million new jobs.
  • Since the start of the Obama administration, the number of real unemployed workers has increased by 4.6 million. The U.S. economy needs to add 150,000 new jobs each month simply to keep up with “population growth.”
  • For unemployment benefits, the average number of weeks unemployed is at least 34 and the number of workers unemployed a half year or longer is at least 10.1 million.

August 7, 2010

Dollar Deflation & the Grave Economy

Dark economic clouds are gathering over the United States as a second stage of national distraction arrives. Now that the BP disaster is over with, a new topic of angst is needed. Right on cue, the Federal Reserve and Ben Bernanke are considering the economic pains of their patient while looking after their own corporate bottom line and the continued enrichment of international bankers.

Bernanke warned in a speech eight years ago that “sustained deflation can be highly destructive to a modern economy” by leading  to a slow death from a rising real burden of debt. “Sufficient injections of money will ultimately always reverse a deflation,” claimed Bernanke.

New banking assessment by big commercial banking interests (Barclays, RBS, et al.) outside the U.S. show that the dollar is in a corner. Wedged tighter in that corner is the United States, which is now wholly dependent on the banking debt that continues to strip the nation. Uncle Ben and his international banking buddies are facing deflationary pressures as economic pressures fueled by rampant unemployment. Their perfect answer will be to start up the printing presses and to flood the international market with still more dollars, which I must admit will only fuel the fire of deflation.

One answer is to create another crisis with competing currencies. The Euro is a perfect candidate for more distraction, while international bankers continue to drain European and Asians nations of their wealth wherever possible. The Wall Street expansion into Europe and Asia has created still more opportunities to distract from dollar reality. Believe it or not, there are still more precious resources to drain. Multinational corporations are now in the cross hairs.

President Obama doesn’t really enter the equation. Perhaps he will once again arise to take “full responsibility” as he did in the BP debacle. No matter. The Washington lawmakers that create brilliant policy don’t matter, except to approve the imaginary creation of still more greenbacks, ringing their hands in political pretense as they hold out their hands for kickbacks and such. All of these cronies are mere cosmetic agents as international bankers continue the next phase of their rape and pillage policy. Bernanke is preparing to start with massive quantitative easing.

The warfare manual for international bankers says to print more dollars. They haven’t hit their 5 trillion dollar target yet. That is their goal. To completely denude the resources and capital of nations so that they can create their own nation that officially rules over all nations. They have the nations and banking community. They now seek the sustenance of the corporate oligarchy. Wall Street is simply a vehicle to bring this about. They seek ultimate power while pretending to be obsequious and eager to please. The idea is to bring the current system to its knees. Even though we have been conned by phoney money, they hold almost all of the real resources of value. We think the debt is real and have traded all manner of resources and labor for it.

Meanwhile, economic contraction is in the wings for the United States. The leading indicator per the Economic Cycle Research Institute is falling faster than since World War II. CPB Netherlands shows real issues with world trade. There is plenty more behind the scenes that shows a truly grave problem for thinking inside the box. Prepare for the unthinkable.

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