kNOWledge is the poWEr

Changing World

Global Insolvency

The most crazy idea of all in financial world is the fact that every single aspect of this world of finances we live since Fed started its financial existence is a pure scam.
To give clear idea to people who seem not to grasp ideology of this scam, best example would be recent 2008 crisis.
Among many, so-called financial vehicles which could drive market in down spiral motion were trust preferred securities, in other words: TruPS.
In different terms banks named these «securities» a Tier 1 capital, which (!) could be purchased first by largest financial institutions, but eventually starting in 2002 smaller ones were buying into this as well.
Ironically « securities » have nothing to do with security of any kind. TruPS are (!) putting in simple term  ‘a debt’. Debt in financial scheme has different forms, but one thing mathematically defines it. It has always minus value, it is a void of financial means.
If debt was backed up by any «valuable asset» like precious metals, gold, silver etc.  this would give guarantee to average investor that there is shield existing for specific debt. But debt since it’s conception is created literally out of a thin air.
What does it mean? Let’s say, if you go to bank and ask to loan the money, this lump sum is nothing else as debt sold to you by bank and you are solely a buyer of this debt. You think: wait a minute, why would I buy debt? Well, loan is a debt, you borrow money, you don’t have and apparently you don’t just borrow principal, but you have now interest accrued within time, to pay as well. This interest becomes often bigger than principal amount borrowed in first place.
In these terms, as a buyer, you normally would purchase sth you can afford, but this bank product is not sth you afford, it is a loan, a debt.
What is startling about this idea is the fact that debt, like any other financial vehicle, is simply a number. You can put 1 and behind one as many 0s as you would like.
It could create number like 10,000; 100, 000; or 100.000.0000
These numbers are not a value, they symbolize value, but because value only exist when sth is given a ‘market value’ and customary we humans put market value into sth (i.e more rare things cost usually significantly more).
TruPS have also another characteristic. They could be, as one of the options, defined as «debt», so interest payments on debt could be tax deferred up to 5yrs. Just say ‘debt’ and you may buy some time as well, apart from debt. That’s right ‘time” is also your financial term.
There is another terminology, when debts get more complex: hybrid debts. Unbelievably these sort of debts can suddenly become….a stock.
That’s right, the one you buy from stock market and it could be part of your own debt in reverse. In reality, you would be double buyer of debt, buying your own debt, with only difference: now, it would be called…. a stock.

 

 

When you start putting together insanity of this financial scheme, you start understanding what you have been finding yourself in since your birth day. And it’s not good news. It gets worse within your life spam.
This scheme gave other folks advantage of scamming you so, someone among the line is always becoming a payer for others.
These terms which exist entitle few to do with scammy finances whatever they want to, it doesn’t matter, if they call it a debt, equity or securities. There are terms which in reality they define same product under different names and although you would love to believe you buy into something valuable, it is often, simply a scam you are buying into. To grasp all these ideas just research more how these terms are used and how financial system get you involved in perfect scam reality.
Naivety in thinking always bites back. I can tell most of the folks see: «improvement of the economy»; «us dollar strengthening» and all this other «whoop, whoop joy». Reality is far from what our dreams could build a s a picture.
Not to be a pessimist, but there is saying « You cannot get water out of a stone ». There it is. We have reached milestones of deceptive manipulation in financial markets and although average Joe seems to get happier
about brighter future, it may definitely surprise him, more they he ever imagined.
http://www.thesleuthjournal.com/new-york-federal-reserve-signaled-end-dollar-near
There are simple rules to financial scam we witness every day:
1. It can not last forever
2. It serves only reach and create only few reach
3. At the end, when curtain falls down, public is the one paying off the high cost
Remember these 3 rules. As very harmful idiots govern us, there is even more harmful thing: us naively letting idiots to govern us.
Here is a read, you can enjoy and still believe things are getting better.
According to James Rickards, a renowned economist who has worked for more than 30 years on Wall Street, the financial crisis is coming again. However, this in 2008 was nothing compared to what will come.
Time to prepare for a repeat of 1914 and restart of the monetary system.
Portal independenttrader.pl published translation of an interview with Rickards, which was carried out in the Netherlands during the promotion of his new book ” The Death of Money”. Rickards says explicitly that if the politicians will not do something and there is no indication that anything is being done – us dollar will collapse. What does it mean for whole world? As confidence in dollar is being lost, the whole system will collapse – says Rickards.
As examples he cites- among others – conflicts between China and Japan which ho argue about some rocky islets. It also notes that U.S. monetary policy is a factor which initiated the Arab Spring.
– “In my opinion, politicians will continue to trudge down a blind alley » Nobody chooses major structural changes. Unemployment remains high, economic growth weak and the U.S. is stuck in the grip of deflation. All this leads to a deepening of disparities between a small group of rich people and the rest of the population, which ultimately will increase social unrest – notes Rickards .
Expert see actions of the big banks as bluntly risky and reckless. They compare them to the parasite, which destabilizes the system. Ref. http://www.hangthebankers.com/videos/
According to Rickards all blame is on governments that allowed the destabilization of the entire system.
You can not pour from empty…     “To my mind, these events underline the fragility -– dare I say growing fragility –- hidden beneath the markets buoyancy” – Claudio Borio
“A stormy meeting of the 12-member OPEC cartel last month demonstrated the painful impact of the slumping prices, with Venezuela and Nigeria pleading for output to be slashed.”

Bullish Markets
Changing the rules of the game…
Rickards says that in just last and this century years we had dealt 3x with the collapse of the pension system. Yes, 3x: in 1914, 1934 and 1971. The collapse of the monetary system is nothing unusual and does not mean the end of the world – says the economist.
What happens then? When it comes to the monetary collapse major trading and financial powers sit together to discuss new rules. In theory, this is nothing new, but today we have a serious problem.
– During the recent crisis, Feds have flooded the whole world with liquidity . Billions of dollars were injected into the system, either through swap lines with the European Central Bank or guarantees granted worldwide. Feds actions prevented the deterioration of the situation, but the problem is that the balance has increased from 800 billion to 4 trillion and this happened only during one liquidity crisis. For last 5 years we had ‘relative peace’
Consequently, if crisis explosion occurred today and all indicates it will sooner or later, there is permanent lack of liquidity and we can not take any action at this point. It is impossible to increase Fed balance sheet to 12 trillion dollars. In my opinion, the next crisis will be much larger than the one from 2008, also because Feds has same assets in the balance sheet of junk.
US-China Relationship
Later in the conversation Rickards points out that the more money Feds prints , the stronger effort must be put against the rise of interest rates. If there is a loss of confidence in the markets- interests will grow and that is when Feds counteract – for example through the purchase of bonds for newly printed dollars. However, this will not help, lack of confidence will expand eventually and start dollar value to go down and the price of gold to soar. There is also other major problem, gold or other precious metals can not raise indefinitely in value.
Most of these events take place very quickly, even within a single day. People will see the price of gold rising $100 a day. Some find it as next bubble, but instead it will be purely sign of panic flight from the dollar.
Later, we will see the price of gold rising about 500 USD per day.
Gold has a constant value. The price of gold is merely a reflection of the value of the dollar.
And although FEDs may depend of gold price going skyrocket, because then people would await massive inflation and would start to spend money and get into debt, for government it can not have rapid and violent course, so gold prices are still manageable and behind this process China is a major factor.
www.
Currently, Chinese government has interest to keep low price, because they want to buy more gold. They know that at some point inflation will hit in United States. Gold for China provides a counterbalance to depreciating reserves held in dollars. The whole consideration of the combination of the currency and gold is a nonsense – adds Rickards.
http://www.zeitgeistmovie.com/
The Chinese have done a smart move and secured themselves by buying large amounts of gold. They currently have about 4 trillion dollars in reserve, which is why they want the U.S. currency to be stable. However, when it comes to the devaluation of let’s say10 per cent on dollar, it means transfer of US 400 billions from China to the United States. Same time US dollar looses = gold goes up.
Economist predicts that in the event of monetary system reset there will be shift generated in Asia, shift creating 2 centers of power and influence. The first is Russia, the second will be China with East Asia.
http://www.moneynews.com/StreetTalk/James-Rickards-Dennis-Kneale-Financial-Crisis-Economy/2014/05/20/id/572264/
Quoted:
“Dear Fellow American,
1. Do you believe America’s financial problems from 2008 have been fixed? 2. Do you think we’ll have another banking crisis in the next few years, or a problem with our currency? If you are concerned about these possibilities, you are not alone. After all: What we are witnessing in America today is unprecedented.
Our government has embarked on a gross, out-of-control experiment, expanding the money supply 400% in just six years, and more than doubling our national debt since 2006.
It took our nation 216 years to rack up the first $8.5 trillion in debt… then just 8 more years to double that amount.
And this is precisely why so many questions about the economy and our future remain. For example…
3. Why has there been very little inflation thus far? 4. How will we possibly pay back all this debt?
And of course, perhaps the most important question of all: 5. Why has nothing “bad” happened after our government printed more than $4 trillion new dollars out of thin air and borrowed $9.4 trillion more?
Well, as someone who has been investigating this situation closely for years, who has built a $100 million business by capitalizing on expertise in finance and accounting… I am here to tell you with 100% certainty:
America is in for some major changes to our economy, our country, and our very way of life over the next five years.
The way you live, work, travel, retire, invest… everything is going to change. Some of it in ways most people would never expect.
Some time in the next few years, we will experience a “new” crisis of epic proportions.
We’re going to have a major stock market crash – and it will be worse than the one we experienced seven years ago.
We’re going to have a currency crisis too – because investors and governments around the world will realize the U.S. dollar is not the safe haven it once was.
Sooner than most people think, we’ll see the U.S. dollar lose it’s “reserve currency” status, and this will make it much harder for our government to borrow money, and have our military stationed in more than 150 countries.
As my friend James Rickards (who’s a financial lawyer and consultant for the U.S. government) wrote in his book Currency Wars:
“If the currency collapses, everything else goes with it… stocks, bonds, commodities, derivatives and other investments are all priced in a nation’s currency. If you destroy the currency, you destroy all markets and the nation.”
We’re going to have massive changes to our retirement system and Social Security. We’re likely to see huge tax increases and even a “wealth tax,” which levies a fee on all your savings and any assets of value.
We’re going to see all kinds of new laws and rules about what you can do with your money, just like House of Representatives bill H.R. 2847, which went into effect July 1, 2014. This law made it extremely difficult, if not possible, for the average American to get some of his money out of U.S. dollars, and into more stable currencies via foreign banks. In the months and years to come we’re going to see more and more of these “capital controls” placed on our personal savings… We’re going to have a massive inflation – when the trillions and trillions of newly printed dollars begin making their way into the economy.
We’ll also witness major changes to the very fabric of our society. Destroying a nations’ money in this manner wrecks businesses, friendships, and families, who simply don’t understand and aren’t prepared for what will happen.
Simply following research to its logical conclusion.
I did the same thing when I was one of the first analysts to accurately predict the collapse of the world’s largest mortgage bankers – Fannie Mae and Freddie Mac.
I did the same when I dug into the finances of GM and realized this once great American institution would soon go bankrupt as well. I did the same General Growth Properties (the biggest owner of mall property in America).
When I first presented my case and exposed the facts about these institutions at economic conferences, people got angry.
They couldn’t refute my research… but they weren’t ready to accept the enormity of the conclusions either.
And now, the same financial problems I’ve been tracking from bank to bank… and from company to company for the last decade have found their way into the U.S. Treasury.
The next phase of this crisis will threaten our very way of life.
The savings of millions will be wiped out. This disaster will change your business and your work. It will dramatically affect your savings accounts, investments, and retirement.
It will change everything about your normal way of life: Where you vacation… where you send your kids or grand-kids to school… how and where you shop… the way you protect your family and home.
I know many people see the recovered stock market, the rebound in real estate prices, and want to believe everything is “back to normal.”
But I promise you, nothing is “normal” about what is happening in America today. It is all smoke and mirrors – the result of an out-of-control government experiment with our money supply.
After all, how can it be “normal” when…

* Roughly 75% of Americans are living paycheck to paycheck, with essentially zero savings, according to a recent study by Bankrate.
* The “labor force participation rate” (basically the percentage of able-bodied people who are actually working) has fallen every year since 2007 and is at its lowest level since the 1970s. (Source: The U.S. Bureau of Labor Statistics)
* How can things really be “normal” in America, when the number of people on food stamps has basically doubled since Barack Obama took office… and when HALF of all children born today will be on food stamps at some point in their life?
Yes, you read that correctly: Roughly 50% of all children born in America today will be on food stamps at some point in their lifetime. Does that sound “normal” to you?
* Can our country really be back to “normal” when, according to the most recent numbers from the Census Bureau, an incredible 49% of Americans are receiving benefits from at least one government program EVERY SINGLE month?
* Or when 52% of all American workers make less than $30,000 a year?
* Can things really be “normal” in America when at one point, a single U.S. government-controlled agency (the Federal Reserve) was purchasing up to 70% of the bonds issued by the U.S. Treasury – simply by creating money out of thin air?
* Or when the “too-big-to-fail-banks” that got bailed out in 2007 are actually 37% larger than they were back then?
* And how can things be normal when our country’s money supply has increased by 400% since 2006 – all just printed out of thin air. Look at this chart below… it should scare the hell out of you…
It shows that what has taken place over the past few years with the U.S. dollar is something straight out of  Weimar Germany… or the last 20 years in Zimbabwe.
Like I said, no one can tell you when exactly the next crisis is coming. Not me… not anyone else. But I assure you, what’s going on today sure as hell isn’t “normal.”
And it’s guaranteed to end in a disaster”
There has been many talks in recent times (due to global turmoil and people sensing current financial system crashing down) about NEW CURRENCY, which suppose to be backed up like currencies being used so far. Of course only people and people only can give a value to anything, so any means of exchange between one person and the other is just symbolized by values we establish to be acceptable for both sides.
But there is a huge catch, especially in midst of times, where people loose complete trust to their surroundings and many times don’t even understand these surroundings anymore….
As currency (and purposely it is not called money) is always a relevant tool and needs something to be measured up to (in past and now it is still gold or silver), it also needs to be at all cost (how ironic) to be kept away from those who would love to abuse this mechanism.
We already have enough documented sources out there to educate ourselves of how big scam we live in and how quickly these sort of scams tend to die.
Average cycle of by far designed financial systems take usually around 80-90 yrs. We already reached this time limit.
It’s not just financial freedom which is at stake, it is a personal freedom we need to worry about. Being induced with media coma, we just start realizing how bad situation we are in and for many unfortunately this situation means complete upside down of what they think would stay same way for the rest of their life.
So what is it all about?
New trendy thing called ßitcoin or any other virtual version of it which suppose to cure the financial crisis and bring answer to those who expect a change.
But every change comes with price and this maybe even bigger price than the one, we are already paying now.
Just few thoughts to think about, when finding alternative to our situation:
1. Like physical paper money, virtual money could be subjected to same fake scheme of financial security. Same people, using (again) lack of our knowledge, may have even more power over controlling virtual money ‘flow’. Not mentioning hackers: as this situation opens countless opportunities for them.
2. ßitcoins or however we call them, are given same way a value, like anything else we give value to. So also same abuse may be applied to how this value is interpreted and adjusted to social spending. People themselves are major source of possible issue.
3. As we are in technology era, we also know technology can fail. Let’s say there is major crush down, i.e electricity we rely on. Nowadays computer files can go missing in nanosecond, so how and who again would give as we call it: money protection guarantee?
My guess it would be virtual bank doing exactly same Ponzi scheme like physical bank.
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from existing capital or new capital paid by new investors, rather than from profit earned by the individual or organization running the operation.Wikipedia
People get enthusiastic about it, as it is something NEW and never seen before.
Like a new iPhone 5- just another toy on the market…. This doesn’t mean it will work the way, majority imagine as Matrix of our ‘reality’ is NOT a thing of a past and it’s actually perfect indicator of the future.
4. Lastly, how do we know that same folks, who mastered current plan, are not putting next deception in front of our eyes as the darkest spot is usually under lighthouse. This could be just another creation of the system to play a good uncle Joe and appear with clean record.
In quoted article (link) there is already mentioning about trial of abusing flow of bitcoins, so only critical thinking in this case can give most sufficient outcome what direction we should take in approaching our future….
5.  (…) could it be just another smooth way of introducing  global currency project  as planned?
We’re still not wise enough to realize that our current model is a ‘Ponzi’ scheme rushing toward its inevitable ‘Minsky moment’,” Steen Jakobsen, a chief economist at Danish investment bank Saxo Bank, said in a research note on Friday. The term “Minsky moment” refers to a phrase coined for the Asian debt crisis of the late 1990s by Pimco’s Paul McCulley” (quote, linked to: http://goo.gl/3TU3RP)
Unsustainable debt will be the cause of the crash, according to Jakobsen.
 My quote:  “We have been in denial of truth (not just financial truth) – for all human existence, even worse: we have been in denial of ourselves – during whole human existence”.
Our societies are very poorly managed and this is one of ultimate effects (this topic will be discussed in my e-book soon to come). Click on links throughout all text, it will clarify situational context and share it!
According to James Rickards, a renowned economist who has worked for more than 30 years on Wall Street, the financial crisis is coming again. However, this in 2008 was nothing compared to what will come.
Time to prepare for a repeat of 1914 and restart of the monetary system.
Portal has published translation of an interview with Rickards, which was carried out in the Netherlands during the promotion of his new book “The Death of Money“. Rickards says explicitly that if the politicians will do nothing and… there is no indication that anything is being done – us dollar will collapse. What does it mean for the whole world?
As  confidence in dollar is being lost, the whole system will collapse – says Rickards.
As examples he cites – among others – conflicts between China and Japan arguing about some rocky islets. It also notes that U.S. monetary policy is a factor which initiated the Arab Spring.
– “In my opinion, politicians will continue to trudge down a blind alley » Nobody chooses major structural changes. Unemployment remains high, economic growth weak and the U.S. is stuck in the grip of deflation. All this leads to a deepening of disparities between a small group of rich people and the rest of the population, which ultimately will increase social unrest – notes Rickards .
Expert see actions of the big banks as bluntly risky and reckless. They compare them to the parasite, which destabilizes the system.
Ref:   Financial Scams
According to Rickards all blame is on governments that allowed the destabilization of the entire system.
Changing the rules of the game…
Rickards says that in just last and this century years we had dealt 3x with the collapse of the pension system. Yes, 3x: in 1914, 1934 and 1971.  The collapse of the monetary system is nothing unusual and does not mean the end of the world – says the economist.
What happens then? When it comes to the monetary collapse major trading and financial  powers sit together to discuss new rules. In theory, this is nothing new, but today we have a serious problem.
– During the recent crisis, Feds have flooded the whole world with liquidity. Billions of dollars were injected into the system, either through swap lines with the European Central Bank or guarantees granted worldwide. Feds actions prevented the deterioration of the situation, but the problem is that the balance has increased from 800 billion to 4 trillion and this happened only during one liquidity crisis. For last 5 years we had ‘relative peace’
Consequently, if crisis explosion occurred today and all indicates it will sooner or later, there is permanent lack of liquidity and we can not take any action at this point. It is impossible to increase Fed balance sheet to 12 trillion dollars. In my opinion, the next crisis will be much larger than the one from 2008,  also because Feds has same assets in the balance sheet of junk.
US-China Relationship
Later in the conversation Rickards points out that the more money Feds prints , the stronger effort must be put against the rise of interest rates. If there is a loss of confidence in the markets – interests will grow and that is when Feds counteract – for example through the purchase of bonds for newly printed dollars. However, this will not help, lack of confidence will expand eventually and start dollar value to go down and the price of gold to soar. There is also other major problem, gold or other precious metals can not raise indefinitely in value.
Most of these events take place very quickly, even within a single day. People will see the price of gold rising $100 a day. Some find it as next bubble, but instead it will be purely sign of panic flight from the dollar.
Later, we will see the price of gold rising about 500 USD per day.
Gold has a constant value. The price of gold is merely a reflection of the value of the dollar.
And although FEDs may depend of gold price going skyrocket, because then people would await massive inflation and would start to spend money and get into debt, for government it can not have rapid and violent course, so gold prices are still manageable and behind this process China is a major factor.
Currently, Chinese government has interest to keep low price, because they want to buy more gold. They know that at some point inflation will hit in United States. Gold for China provides a counterbalance to depreciating reserves held in dollars. The whole consideration of the combination of the currency and gold is a nonsense – adds Rickards.
Zeitgeist Movie

The Chinese have done a smart move and secured themselves by buying large amounts of gold. They currently have about 4 trillion dollars in reserve, which is why they want the U.S. currency to be stable. However, when it comes to the devaluation of let’s say10 per cent on dollar, it means transfer of US 400 billions from China to the United States. Same time US dollar looses = gold goes up.
Economist predicts that in the event of monetary system reset there will be shift generated in Asia, shift creating 2 centers of power and influence. The first is Russia, the second will be China with East Asia.
Financial Crisis
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