Busted: Bankers and The Global Economy

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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May 4, 2009

Krugman: Falling Wages and a Recovery

Paul Krugman makes some excellent points:

So what should we conclude from the growing evidence of sagging wages in America? Mainly that stabilizing the economy isn’t enough: we need a real recovery.

But the unemployment rate is almost certainly still rising. And all signs point to a terrible job market for many months if not years to come — which is a recipe for continuing wage cuts, which will in turn keep the economy weak.

To break that vicious circle, we basically need more: more stimulus, more decisive action on the banks, more job creation.

Credit where credit is due: President Obama and his economic advisers seem to have steered the economy away from the abyss. But the risk that America will turn into Japan — that we’ll face years of deflation and stagnation — seems, if anything, to be rising.

The Falling Wage Syndrome by Paul Krugman

Inflation-adjusted American wages have remained ‘stagnant’ since 1975 but the cost of living has steadily increased. This contributes to the use of credit, the nation’s current plight regarding credit slavery and the high prices of market goods, notably automobiles. The recovery of the auto industry, for example, depends on moving cars and trucks. The problem remains in high prices versus wages of Americans. Houston: we have a problem.

In a review of the Census Bureau’s Historical Income Tables, the truth is not stagnation in an actual sense.  For example, the median income for white men fell nearly 10% between 1974 and 1982. The income for the same group climbed 15% from 1982 to 2007. Income for women increased only slightly between 1974 and 1982 and actually fell slightly for blacks during the same period. Meanwhile costs and expenses spiraled out of control at an annual average inflation rate hovering around 10%, fostered by runaway spending created by credit.

Some argue that wages have increased by 40% since the 1970’s. A recent study by the Federal Reserve Bank of Minneapolis discovered that wages for the average American worker went up by 20 percent between 1975 and 2005. However, one cannot accept the current 3% inflation rate pushed by the Federal Reserve and the federal government as fact. Assuming an average 10% inflation rate which is closer to truth, neither 20% or 40% hold a candle to the real and hidden inflation rate. Given a median inflation rate of 10%, you are looking a loss of buying power at a staggering 100% every ten years instead of a professed 30% reduction in buying power. Now you know where the problem really is. Inflation is not our friend. Living on predatory and usurious credit has come at great cost to the entire globe. The bottom line is that a liberal fractional reserve that has allowed runaway credit is truly responsible for the current plight of global financial malaise. The current mindset continues that monetary credit is the answer to the global meltdown. The actions of central bankers continue to dilute the value of the dollar as global currency.

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