“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”
|Rank||Country||CAB USD, bn|
|1||People’s Republic of China||371.833|
|181||United States||-731.214 |
This is a list of countries and territories by current account balance (CAB), based on the International Monetary Fund data for 2007, obtained from the latest World Economic Outlook database (October 2008).
This Credit Crunch financial crisis is just a re-run of the 1929-1933 Great Depression and US bankruptcy.
The previous credit crunch was brought on by the Federal Reserve Act of 1913 and the introduction in a big way of fractional reserve banking. This lead to the stock market bubbles of the 1920’s and the resultant market crash. It took 20 years to bankrupt the US after deregulation and fractional reserve banking.
Today we are facing the same issues. 20 years ago the financial world was deep into Regeanomics and Thatcherism ,de-regulating the financial markets and suprise suprise 20 years later we face bankruptcy! When will we learn?
It seems the financial markets have learned. This time the attempted fascist coup on the US and UK establishment looks like its going to work.There is a trail of premeditated evidence this time and a stench of despiration and it all comes from the same people that tried this in 1933 . It also seems that in the Endgame its the Chinese Bankers and NOT Wall Street that will win.
Here is how free market capitalsim is supposed to work, aka ,the BOOM and BUST economy
1.Availability of credit allows money to flow between savers and borrowers.
2.Resources and funds are allocated to various projects or investments during a boom phase.
3.Eventually borrowing becomes excessive and leads to malinvestment,
4.At this stage, adherence to free market theory would allow for an efficient cleansing period and a healthy recovery period. How? Irresponsible and unprofitable businesses fail. Bad debts get liquidated. Excess resources go on sale, flow into more stable ventures and pool together with more profitable resources controlled by healthy corporations or entities
In this case, the irresponsible and unprofitable businesses are the Wall Street and UK Banks. They should of been left to fall ,thier assets stripped and put into the market place to be bought by responsible and profitable businesses at low prices as the market place will be flooded with assets. In this case ,the responsible and profitable businesses are Credit Unions(Trade Union banks) and Chinese banks or Saudi banks for example.
Instead we had a banker bailout .We “nationalised” the banking industry! Of course “they” do not call it nationalisation ,but when the taxpayer is the main share holder YOU ARE A NATIONALISED INDUSTRY!!! But actually this was all part of the Fascist plan.
“Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power”
TODAY we run a Fascist business model, Banks can now run with PRIVITIZED PROFITS and SOCIALIZED LOSSES!!!!!!
The United States has transformed itself, the most radical degraded aspects having occurred in the last eight years. Many might object or cringe at repeated mention of the Fascist Business Model implemented by the Clinton Administration, and carried to extreme by the Bush II Administration
The Fascist Business Model has criminal fraud & corruption as its chief characteristic, alienation & resentment as its chief foreign effect, and systemic failure & collapse as its chief outcome.
REMEMBER THE BAILOUT ? IT WAS A LOT BIGGER THAN ADMITTED!!!
Remember that bailout $700 Billion….Well it was actually $23.7 TRILLION and it still has NOT WORKED!!
FED GAVE Banks Access to 23.7 TRILLION DOLLARS NOT $700 Billion!
TODAY DRUG MONEY KEEPS THE BANKS RUNNING. EXPLAINS THE BUMPER OPIUM CROPS IN AFGHANISTAN!!!!!!
Drug money saved banks in global crisis, claims UN advisor
Drugs and crime chief says $352bn in criminal proceeds was effectively laundered by financial institutions
Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were “the only liquid investment capital” available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result.
The War On Drugs , another fake war that ended in total defeat for the US!!!!!
BEHIND THE SCENES DIRTY DEALS ARE BEING MADE!!! Western free market capitalism is DEAD,the fascist coup is in place !!!
BUSINESS LOBBY GROUPS BUY OR BRIBE CONGRESS
According to a study by The Center for Responsive Politics, special interests paid Washington lobbyists $3.2 billion in 2008—more than any other year on record. This was a 13.7 percent increase from 2007 (which broke the record by 7.7 percent over 2006).Business and real estate associations and coalitions were among the organizations that ramped up their lobbying expenditures the most last year.
The American Bankers Association spent $9.1 million in 2008, a 47 percent increase from 2007. Other industry groups that spent more in 2008 include the Private Equity Council, the Mortgage Bankers Association of America and the Financial Services Roundtable.
The US Chamber of Commerce remained the number one spender on lobbying in 2008, spending nearly $92 million—more than $350,000 every weekday, and a 73 percent increase over 2007—to advocate for its members’ interests. Pro-business associations as a whole increased their lobbying 47 percent between 2007 and 2008.Pro-Israel groups, food processing companies, and the oil and gas industry increased their lobbying expenditures the most (as a percentage) between 2007 and 2008.
Title: “Washington Lobbying Grew to $3.2 Billion Last Year, Despite Economy”
Authors: Center for Responsive Politics
February 2, 2010 Warning: This is Not Another Wall Street Conspiracy Theory, These are the Facts
What the House Committee heard, overwhelmingly, on Wednesday was that AIG had to be bailed out because if it wasn’t, the financial implosion that would result would send unemployment to 25% and America into the tailspin of another Great Depression.
THE MARKETS ARE BEING MANIPULATED
Trader on Bloomberg says markets are manipulated and volumes ‘ficticious’.Not only are the new high tech/high speed transactions giving big banks an overwhelming trading advantage over retail investors, they’re also creating a false impression about the health of the stock market.
BUT THE NUMBERS STILL JUST DO NOT ADD UP!!!
By President Obama’s own optimistic projections, American deficits will not return to what are widely considered sustainable levels over the next 10 years. In fact, in 2019 and 2020 — years after Mr. Obama has left the political scene, even if he serves two terms — they start rising again sharply, to more than 5 percent of gross domestic product. His budget draws a picture of a nation that like many American homeowners simply cannot get above water.
ALL THIS EXPLAINS WHY THE FED DOES NOT WANT TO BE AUDITED!!!!!! ITS ALREADY BANKRUPT AND FRAUD IS THE ONLY THING KEEPING IT AFLOAT!!!!
HOW DID WE GET IN THIS SITUATION …SIMPLE DE-REGULATED FRACTIONAL RESERVE BANKING! ITS WHAT BANKRUPTED THE US IN 1933 AS WELL. COINCIDENSE , INCOMPITENCE OR CONSPIRACY?
According to the New York Federal Reserve Bank, fractional reserve banking can be explained this way….
“If the reserve requirement is 10%, for example, a bank that receives a $100 deposit may lend out $90 of that deposit. If the borrower then writes a check to someone who deposits the $90, the bank receiving that deposit can lend out $81. As the process continues, the banking system can expand the initial deposit of $100 into a maximum of $1,000 of money ($100+$90+81+$72.90+…=$1,000).”
THIS YEARS SHORT TERM DEBT REPAYMENTS $ 3.5 TRILLION
one of those numbers that’s so unbelievable you have to actually think about it for a while… Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that’s not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That’s an amount equal to nearly 30% of our entire GDP. And we’re the world’s biggest economy. Where will the money come from?
How did we end up with so much short-term debt? Like most entities that have far too much debt – whether subprime borrowers, GM, Fannie, or GE – the U.S. Treasury has tried to minimize its interest burden by borrowing for short durations and then “rolling over” the loans when they come due. As they say on Wall Street, “a rolling debt collects no moss.” What they mean is, as long as you can extend the debt, you have no problem. Unfortunately, that leads folks to take on ever greater amounts of debt… at ever shorter durations… at ever lower interest rates. Sooner or later, the creditors wake up and ask themselves: What are the chances I will ever actually be repaid? And that’s when the trouble starts. Interest rates go up dramatically. Funding costs soar. The party is over. Bankruptcy is next.
When governments go bankrupt it’s called “a default.” Currency speculators figured out how to accurately predict when a country would default. Two well-known economists – Alan Greenspan and Pablo Guidotti – published the secret formula in a 1999 academic paper. That’s why the formula is called the Greenspan-Guidotti rule. The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities. The world’s largest money management firm, PIMCO, explains the rule this way: “The minimum benchmark of reserves equal to at least 100% of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support.”
The principle behind the rule is simple. If you can’t pay off all of your foreign debts in the next 12 months, you’re a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured.
So how does America rank on the Greenspan-Guidotti scale? It’s a guaranteed default. The U.S. holds gold, oil, and foreign currency in reserve. The U.S. has 8,133.5 metric tonnes of gold (it is the world’s largest holder). That’s 16,267,000 pounds. At current dollar values, it’s worth around $300 billion. The U.S. strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that’s roughly $58 billion worth of oil. And according to the IMF, the U.S. has $136 billion in foreign currency reserves. So altogether… that’s around $500 billion of reserves. Our short-term foreign debts are far bigger.
According to the U.S. Treasury, $2 trillion worth of debt will mature in the next 12 months
CHINA NOW CALLS THE WORLD ECONOMIC SHOTS. CHINA IS DUMPING DOLLARS!! CHINA WANTS GOLD AND ASSETS!!!!
China alarmed by US money printing
The US Federal Reserve’s policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy.
US USING FAKE GOLD TO PAY ITS CHINESE DEBT!!!!!!
In October of 2009 the Chinese received a shipment of gold bars. Gold is regularly exchanges between countries to pay debts and to settle the so-called balance of trade. Most gold is exchanged and stored in vaults under the supervision of a special organization based in London, the London Bullion Market Association (or LBMA). When the shipment was received, the Chinese government asked that special tests be performed to guarantee the purity and weight of the gold bars. In this test, four small holed are drilled into the gold bars and the metal is then analyzed.
Officials were shocked to learn that the bars were fake. They contained cores of tungsten with only a outer coating of real gold. What’s more, these gold bars, containing serial numbers for tracking, originated in the US and had been stored in Fort Knox for years. There were reportedly between 5,600 to 5,700 bars, weighing 400 oz. each, in the shipment!
THE CHINESE ACCUSE THE US OF MANUFACTURING THE FAKE GOLD!!!!
Roughly 15 years ago — during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] — between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day.
According to the Chinese investigation, the balance of this 1.3 million to 1.5 million 400 oz tungsten cache was also gold plated and then allegedly “sold” into the international market. Apparently, the global market is literally “stuffed full of 400 oz salted bars”. Perhaps as much as 600-billion dollars worth
DA investigating NYMEX executive
Manhattan, New York, –Feb. 2, 2004. A top executive at the New York Mercantile Exchange is being investigated by the Manhattan district attorney. Sources close to the exchange said that Stuart Smith, senior vice president of operations at the exchange, was served with a search warrant by the district attorney’s office last week. Details of the investigation have not been disclosed, but a NYMEX spokeswoman said it was unrelated to any of the exchange’s markets. She declined to comment further other than to say that charges had not been brought. A spokeswoman for the Manhattan district attorney’s office also declined comment.”
The offices of the Senior Vice President of Operations — NYMEX — is exactly where you would go to find the records [serial number and smelter of origin] for EVERY GOLD BAR ever PHYSICALLY settled on the exchange.
SO HOW IS AMERICAN GOING TO PAY ITS DEBT NOW?
This Fascist coup could actually fail, and the Chinese just step in and takeover without a shot being fired.Whether this was the plan all along OR the bankers just never thought they would be out scammed by the Chinese I cannot tell, BUT what the future seems to hold is a global fascist NWO being run by the Chinese Communist party with Rupert Murdoch , the boys from Google and the Wall Street bankers all making their money in Chinese YUAN!!!!!
THE BAILOUT DID NOT WORK , DEBT IS STILL RISING
The Senate voted on December 24 to allow the federal government to borrow an additional $290 billion, thereby increasing the total federal debt from $12.1 trillion to about $12.4 trillion.
WASHINGTON (Reuters) – The U.S. Senate Thursday voted narrowly to increase the government’s borrowing authority to $14.3 trillion, which would allow the Treasury Department to continue servicing the country’s spiraling national debt through most of 2010.
US AND UK BUSINESSES ARE STILL DEVALUING!!!!!
Britain’s banks have been downgraded as credit risks by ratings agency Standard and Poors. This means they are no longer regarded as among the safest bets in the world.
General Electric lost its top credit rating from Moody’s Investors Service on Monday because of higher risks at the conglomerate’s struggling GE Capital lending unit.
ARE WE SEEING THE CAPITALIST USA’S SOVIET UNION COLLAPSE MOMMENT? WILL THE US PROVE ITSELF LESS MORAL THAN THE USSR AND PUT THE TROOPS ON THE STREETS?
Thousands of Troops Are Deployed on U.S. Streets Ready to Carry Out “Crowd Control”
Members of Congress were told they could face martial law if they didn’t pass the bailout bill. This will not be the last time.
By Naomi Wolf the author of Give Me Liberty (Simon and Schuster, 2008),
Gold to Benefit from Inevitable More Bailouts
Public and private debt will be printed up out of thin air and used to replace the bad private and public debt plaguing the financial world. As the insanity progresses, more and more will turn to Gold.
More bailouts are coming. More private debt will be switched to sovereign/public debt. If sovereigns can’t take on more debt, which they obviously and unfortunately can, then super-sovereigns like the IMF and European Union central bank will mint new debt and pile more debt on top of old.
SO WATCH OUT IF YOU PLAN TO DEMONSTRATE AGAINST FUTURE BAILOUTS ETC…
So looking only at short-term debt, we know the Treasury will have to finance at least $2 trillion worth of maturing debt in the next 12 months. That might not cause a crisis if we were still funding our national debt internally. But since 1985, we’ve been a net debtor to the world. Today, foreigners own 44% of all our debts, which means we owe foreign creditors at least $880 billion in the next 12 months – an amount far larger than our reserves.
Keep in mind, this only covers our existing debts. The Office of Management and Budget is predicting a $1.5 trillion budget deficit over the next year. That puts our total funding requirements on the order of $3.5 trillion over the next 12 months.
So… where will the money come from? Total domestic savings in the U.S. are only around $600 billion annually. Even if we all put every penny of our savings into U.S. Treasury debt, we’re still going to come up nearly $3 trillion short. That’s an annual funding requirement equal to roughly 40% of GDP. Where is the money going to come from? From our foreign creditors? Not according to Greenspan-Guidotti. And not according to the Indian or the Russian central bank, which have stopped buying Treasury bills and begun to buy enormous amounts of gold. The Indians bought 200 metric tonnes this month. Sources in Russia say the central bank there will double its gold reserves.
So where will the money come from? The printing press. The Federal Reserve has already monetized nearly $2 trillion worth of Treasury debt and mortgage debt. This weakens the value of the dollar and devalues our existing Treasury bonds. Sooner or later, our creditors will face a stark choice: Hold our bonds and continue to see the value diminish slowly, or try to escape to gold and see the value of their U.S. bonds plummet.
IF THE FAKE GOLD CAN BE TRACED “WITHOUT DOUBT” TO THE US (and it seems it can) THEN THE US IS ALREADY BANKRUPT!!!! AND THE CHINESE HAVE THE USA GREASED UP AND OVER A BARREL!!!!!
SO MAYBE US TREASURY BONDS WILL BE ISSUED IN CHINESE YUAN!!!!
U.S. Govt Yuan Bond Threat to U.S. Dollar
The Chinese are in town to meet with the USGovt officials on continued debt support. The public will surely NOT be told what is discussed. One informed contact wrote this morning that the US lies as a terminal patient in the Intensive Care Ward, and seeks a death with dignity from its Chinese creditor doctors. The challenge to China is to protect its main core of US$-based reserves, and to protect future investments.
The USGovt might soon issue bonds, except not in US$ denomination, but rather in Yuan currency. Out of the gate (with debt signposts), the USGovt must purchase gigantic swaths of Yuan and pay with USDollars. The result is a quantum decline in the US$ exchange rate
BUT MAYBE THE CHINESE WANT MORE!!!!!!!!!
Rumors are ripe that in a March 2009 trip to Beijing, Secy State Hillary cut a deal promising Eminent Domain on US property in return for continued USTreasury Bond support. So maybe a shopping basket of thousands of homes, hundreds of commercial buildings, scads of idle industrial plants, and a few million acres of farmland are soon to be seized by the Chinese in exchange for USTreasury Bond debt. One must wonder. The American people, i.e. USA Inc shareholders, will be the last to know in this criminal syndicate environment, a hatched cloud from the Fascist Business Model. Seemingly on a quarterly basis, something must be handed to the Chinese for continued USTBond support. The USTreasury officials and USFed have lied through their teeth about avoiding direct monetization.
The US Embassy in Beijing confirmed the deal to the source. Hillary closed the deal. A quid-pro-quo agreement was struck, continued USTBond purchases in return for Eminent Domain option to exercise by China for property seizure, “ to physically take, inside the USA, land, buildings, factories, perhaps even entire cities.” The concepts of colonization and carpet-bagging should come to mind!
This is just another phase of the New World DisOrder, BUT do NOT expect the US Government OR Wall Street to let YOU know what is REALLY going on!!!
BUT IF THE PEOPLE START GETTING TOO RESTLESS AND ASK TOO MANY QUESTIONS ,EXPECT TO BE SENT OFF TO SOME FAKE WAR. THEY WILL THINK ITS GOOD FOR THE ECONOMY AND THERE ARE TOO MANY CONSUMERS ON THE PLANET!!!
AND A FINAL WORD FROM THE SELF PROCLAIMED BRIGHTEST AND BEST!!!!!!!
Finacial spokespersons give thier opinion on the finacial recovery
Financial spokesperson No.1
“ROOLS , ROOLS!!!!! We don’t need no stinkin ROOLS!!”
Financial spokesperson No.2
“OK everybody , just give us the money and no-one will get hurt!!!”
Financial Spokesperson No.3
“Here is your Chinese phrase book, its only 100 American Yuan!”
A last note . Bankers are the best suited for unemployment.WHY?
Well they are non-productive members of society , so society does not loose anything when they are unemployed.
They have thier own house and assets so do not need state subsidy.
SO WHY ARE WE FINANCING THESE INCOMPITANT CRIMINALS????
It seems they cannot even organise a piss-up in a brewery, or run an economy even when THEY print all the money !!!
As this is a re-run of the 1929-1933 US bankrupcy and in this case we started our collapse in 2007/8 ,expect the bankrupcy to happen 2011/12. We should still manage to limp through 2010 , with a fake “pump and dump” recovery as the BIG players try to cash out before total collapse!! .China will become more of a World and economic influence,they already are keeping the US economy running. This is Chinas nuclear option. If it dumps its 2 Trillion of dollar assets on the market the dollar collapses and China looses 2 Trillion in dollar assets . BUT as China has been financially divesifying its reserves ,its NON-DOLLAR ASSETS will rise significantly in value with a dollar collapse. Thus in theory ,China could actually dumps its dollar assets , and immediately bankrupt America and NOT LOOSE ANY MONEY DOING SO!!!!!!
“Paper money eventually returns to its intrinsic value —- zero.” – Voltaire
“You have to choose between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold.” – George Bernard Shaw
The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin . . . Bankers own the earth. Take it away from them but leave them the power to create money, and, with a flick of a pen, they will create enough money to buy it back again . . . Take this great power away from them, and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. . . . But, if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.
– Sir Josiah Stamp, Director of the Bank of England, 1927