Busted: Bankers and The Global Economy

November 16, 2011

Financial Nonsense of GDP & Jobless Figures

Third quarter GDP numbers have no relation to reality  says John Williams of Shadow Stats. He believes that unemployment hasn’t really recovered from the 2001 recession. GDP has become a nonsense number, worthless in terms of having any meaning in terms of the real economy.

December 31, 2010

2011: A New Year for Dogs & Ponies

It’s been a great year if you haven’t looked much at the world around you, but there is always potential, especially for Wall Street leveraging and central bankers. Since I’ve retired in earnest, I sometimes shut off the news because I’d rather think about something else. Perhaps you’ve been doing this too. If so, you may not for much longer. Scuttlebutt at the G20 has it that the dollar won’t be the darling of the world much longer. So what, you say! That kind of talk has been going on for years. Apparently, the G20 finance ministers have decided that on May 4, 2011 that the dollar will no longer be the “world reserve currency.” So what you say? Even if you don’t believe it, the scenario is rather entertaining, i.e., would make a great movie. It’s a real dog and pony show.

Even now silver and gold paper is highly leveraged, much like the dollar is with the fractional reserve. There is so much leveraged paper out there that the system in place is likely to implode from the panic. There isn’t enough silver and gold bullion in the marketplace, or rather, in the storehouses. This is already heating up into a potential crisis, a run on the bank, as it were. Won’t that make gold and silver more valuable? Only if you have your gold or silver in real gold or silver. In that case, you won’t have worthless paper securities, but a real danger of having your life taken from you if anyone knows you have it. Because of this, you won’t be able to spend it either, because if you did, somebody would know you had it.

As I said, the demand for the real gold and silver will be terrific as the former world reserve currency plunges into oblivion. Either singular scenario means hyperinflation. With OPEC oil being the USA major import, the nation will shut down from lack of fuel or rather, the ability to buy it. The nation has an oil reserve, but that won’t last long the way America consumes it. Too bad we can’t leverage the oil reserve to pretend there’s more. I’m not finished yet.

The Fed has initiated Quantitative Easing (known as QE2) that spells an end to the Bretton Woods accord with the idea of replacing it with a different system. Trading partners are nervous, but they aren’t the only ones. For now, export-dependent nations recycle capital to USA markets in order to sustain demand. The Federal Reserve decided that the only way to fight deflation and high unemployment in the USA was by weakening the dollar to make USA exports more competitive. That means that the USA will be battling for the same export market as the rest of the world, which will shrink global demand for goods and services. Never mind that China’s decision to back off on the dollar would be enough to cause a dollar crisis. Never mind that the multinationals will hate this as profits plunge. Government officials will wet their pants in panic. Number of jobless Americans will go through the roof, if we had one. Wal-Mart, so dependent on China exports will close. Inventories will be short. National GDPs will shrink. Economies will contract. Ooh. It’s not pretty.

Paul Volcker recently opined: “The growing sense around much of the world is that we have lost both relative economic strength and more important, we have lost a coherent successful governing model to be emulated by the rest of the world. Instead, we’re faced with broken financial markets, underperformance of our economy and a fractious political climate…” Everyone has rode the pony too hard. Now the powers that be are preparing to run the show in a way that is untested. We aren’t sure whether the dogs can carry the weight. All those “risk-free” treasury bonds are in real danger. The whole system is bankrupt. The USA stands to lose all its status. Central bankers know this, but they already hold all the valuables, and the means for a new system.

The world doesn’t care about the USA deficit, as long as it’s used to bail out the world in some sense. 100 major cities are facing bankruptcy this year unless they get a federal bailout. Even though Great Britain opted for austerity measures, the USA doesn’t really have this for a choice because they hold the debt bag for the global standard. Central bankers have the valuables and the credit to prolong the current system as they please or not. Meanwhile, Main Street and the population is more tightly squeezed than ever. Those trained dogs are walking a tightrope, but for how long? President Obama needs to hold everything together with a grand distraction so that he will be handily re-elected. What do you think that will be? It’s sure to be glorious.

In the meantime, go ahead and shut off your TV until something better comes along. Have a party while you can. You might not have long to wait.

April 16, 2009

Economic Lies that the System Promotes

snake-oilYeah. Yeah. You’ve heard it all and everybody is trying to sell you something. The snake oil salesmen are all around. Washington is no different. The lie continues to spread that investing your money in banks or the latest government bonds are safe and sound investing. Think again.

The problem is that we have a ‘dumbing down’ of the American economic system as foreign investors pile on to invest their otherwise worthless American greenbacks and you are the one that will suffer through devaluation and hyperinflation because you base your life on money and monetary acquisition that central bankers run. Your economic livelihood and future is at stake if you have piles of money or owe piles of money. That applies to most Americans. Your investment is an illusion, the same as the thin air that central bankers and banks have created.

The fact remains that there is little monetary defense or value in trying to tell the average American that they can somehow defend their monetary wealth when the central bankers continue to erode that wealth into nothing in a hopelessly compromised financial system. Central bankers are riding the dark horse as they plow the dollar into non-existence so that they can rebuild a new monetary system from the ashes they have created. Naturally, this is to their advantage. The sad thing is that Washington politicians are hopelessly compliant and cooperative in an effort to create a new system from the ashes of your financial lives and years of servitude to their system. We are the fools and most Americans will undoubtedly foolishly listen the advice of the financial sages. What is Washington D.C. up to? CONTROL.  What are central bankers up to? CONTROL. Never forget that what you are being told by mainstream politicians and financial media is designed to secure the system over your life or means of livelihood at your expense.

Gold? Unless you hold the nuggets of goodness in your meaty little hand, don’t buy the snake oil. Gold investment certificates aren’t worth a thunder mug full of waste. Remember the old proverb that possession is nine-tenths of the law. In this case, physical possession is your safest bet, but far from perfect. Your stuff is only as secure as you are. The little guy can easily be pulled from his stuff during a crisis.

I am linking to this electroblurb because it is the right thing to do overall. I do not advocate the sales of the product or the conclusion reached. I ask you to read the facts and forget about buying anything that involves a significant portion of your money, devalued or otherwise, because the money you earn represents your life.

September 18, 2008

Central Bankers foster U.S. Stagflation Today

Market Note: Here is the real news today. 

financial crisis

financial crisis

Central bankers are pumping billions of dollars in American greenbacks into monetary systems to “sustain the market.” Who asked the blighters? What central bankers are doing is fueling the fires of inflation which makes the repercussions of bailout fever more difficult. Yet, nobody asks the question why. Central bankers, under the pretense of helping the market are profiteering and “making themselves useful.” The reality is that they are stoking the fire of U.S. inflation and inflation globally, while taking gold in exchange into their larder to count among themselves as they gloat. The winner of this “market sustenance” is the central banker or the body of International Bankers. Curiously, this is not fostered by the Federal Reserve system directly. However, the central bankers are all in on the same scheme: corporate profits. They do this by bleeding the system and holding the gold while creating more fiat money to lower the value of currency, in this case the staple of the global economy, the dollar which is managed by the Federal Reserve. The end result will be higher prices, devalued currency and more finanical pressure, not less. Don’t be fooled. Markets and panic will heat up whether they do so today or tomorrow. What does this mean for the United States? STAGFLATION. Central bankers are sacrificing the U.S. economy.  5AM CST ~ E. Manning

Read this post penned earlier this morning. Global Economic 911 in Progress

September 16, 2008

U.S. Banking Decline to Impact Euro

On the list of projections with the financial collapse of Lehman Brother is the resulting decline of the Euro in the European economy. However, European monetary experts are not publicly expecting a decline in European banking. They expect a weakening of growth in the European economy instead.

An ongoing debate has ensued for years about the coupling or decoupling of the U.S. economy from other economies. ‘We already have a tendency towards a worsening of the economy and this can be further enhanced by the current developments… We cannot fully decouple,” said European Central Bank Governing Councilman Ewald Nowotny.

The fear is that the U.S. economy will further move the Euro and the European Bloc into a recession. Strangely, the U.S. authorities still continue to deny a U.S. recession. By implication, even European bankers and economists recognize the reality and the truth of what resides in this nation.

European analysts are growing increasingly concerned that the European economy is now heading towards a ‘technical’ recession, or put more plainly, two consecutive quarters of contraction. Meanwhile, central bankers have already put protection mechanisms into place to protect both their investments and gold on hand at central banks. ~ E. Manning

March 10, 2008

Central Banking Works Fine

Filed under: central bank, federal reserve, money — Tags: , , , , , , , , — digitaleconomy @ 12:25 pm

In this brilliantly back-patting and self-aggrandizing speech by Fed Vice-Chairman Kohn, he admits that there is little that needs to be done to maximize the profitability of central banking. That is most certainly true. The central banking power block has the world exactly where it wants: in control and draining the economies of the world for its’ own corporate profit. Am I being unkind? My apologies. I am calling this the way it is.

Federal Reserve link

Monetary policy should be able to adjust quickly to such changes; agreements that must be renegotiated can tie policymakers’ hands.” Don’t tie up your hands with obligations or agreements. Be free. It’s all about performance and bringing in that currency and gold to the vaults of International Banking.

January 31, 2008

China Government Financing Antsy

Filed under: banking, federal reserve, politics — Tags: , , , , , , , , , , — digitaleconomy @ 3:47 pm

China Eview Week 1/31/08

In my research I have noticed that China, like most countries, often denies bad news before it hits even when that news is already in action. So it is not surprising that when the press started talking about China being hit with huge subprime debt that the China government leaned on their commercial banks and cooled their heels briefly. Two days ago, with what the news said and with what China denied last week, they readily admitted one of their commercial banks had huge losses. I have no doubt that with a nation full of greenbacks and a booming economy, the Chinese have plenty that could be invested in the ailing world banking system. The Chinese are taking care of themselves first. Now China is rounding up their gold and putting the eye of scrutiny on gold shipments and travel of any gold-based product. Since the government and central banking relationship is different than in most countries, the Chinese are protecting what they have. The Chinese are cautious and as the second leading gold producer, don’t plan on letting the gold leave the country without good cause and without their knowledge. The Chinese government knows that when the rubber meets the road, the fiat currency of the central bank doesn’t have the strength and power of gold. Unlike the United States, the Chinese aren’t going to willingly give all their wealth away to the bankers or to large corporations. ~ E.M.

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