How Big is the Economic Bomb? Big, Very Big

In the after math of the 2008 crisis, and after “We the People” bailed out the “Too Big to Fail Banks” to the tune of over $14 Trillion dollars, our CONgress vowed they would never let that happen again. Yet since 2008, this very same CONgress has blocked every effort to regulate the banks and audit the FED. The result of the 2008 crisis has had our economy stagnated for the last seven years and the very same people that caused the last economic crisis have created a $278 TRILLION dollar derivatives time bomb that could go off at any moment.

According to Michael Snyder, when this absolutely colossal bubble does implode, we are going to be faced with the worst economic crash in the history of the United States.  It is dangerously bad, as you will see below, those banks have actually gotten far larger since then.  So now we really can’t afford for them to fail.  The six banks that we are talking about are JPMorgan Chase, Citibank, Goldman Sachs, Bank of America, Morgan Stanley and Wells Fargo.  When you add up all of their exposure to derivatives, it comes to a grand total of more than 278 trillion dollars!  But when you add up all of the assets of all six banks combined, it only comes to a grand total of about 9.8 trillion dollars.

In other words, these “too big to fail” banks have exposure to derivatives that is more than 28 times greater than their total assets!  To put this in perspective, it is like you having $100,000 in assets and owing more than $2.8 million dollars! Do you think you could get away with that? This is complete and utter insanity, and yet nobody seems too alarmed about it.  For the moment, those banks are still making lots of money and funding the campaigns of our most prominent politicians.  Right now there is no incentive for them to stop their incredibly reckless gambling so they are just going to keep on doing it.

So precisely what are “derivatives”?  Well, they can be immensely complicated, but on a very basic level, a “derivative” is not an investment in anything.  When you buy a stock, you are purchasing an ownership interest in a company.  When you buy a bond, you are purchasing the debt of a company.  But a derivative is quite different.  In essence, most derivatives are simply bets about what will or will not happen in the future.  The big banks have transformed Wall Street into the biggest casino in the history of the planet, and when things are running smoothly they usually make a whole lot of money, and just like in 2008, things can go very wrong very fast.

Today, the “too big to fail” banks are being even more reckless than they were just prior to the financial crash of 2008. As long as they keep winning, everyone is going to be okay.  But when the time comes that their bets start going against them, it is going to be a nightmare for all of us.  Our entire economic system is based on the flow of credit, and those banks are at the very heart of that system. In fact, the five largest banks account for approximately 42 percent of all loans in the United States, and the six largest banks account for approximately 67 percent of all assets in our financial system. So that is why they are called “too big to fail”.  We simply cannot afford for them to go out of business.

Our politicians promised that something would be done about this.  But instead, the four largest banks in the country have gotten nearly 40 percent larger since the last time around.  The following numbers come from an article in the Los Angeles Times

JPMorgan Chase

Total Assets: $2,573,126,000,000 (about 2.6 trillion dollars)

Total Exposure To Derivatives: $63,600,246,000,000 (more than 63 trillion dollars)

Citibank

Total Assets: $1,842,530,000,000 (more than 1.8 trillion dollars)

Total Exposure To Derivatives: $59,951,603,000,000 (more than 59 trillion dollars)

Goldman Sachs

Total Assets: $856,301,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $57,312,558,000,000 (more than 57 trillion dollars)

Bank Of America

Total Assets: $2,106,796,000,000 (a little bit more than 2.1 trillion dollars)

Total Exposure To Derivatives: $54,224,084,000,000 (more than 54 trillion dollars)

Morgan Stanley

Total Assets: $801,382,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $38,546,879,000,000 (more than 38 trillion dollars)

Wells Fargo

Total Assets: $1,687,155,000,000 (about 1.7 trillion dollars)

Total Exposure To Derivatives: $5,302,422,000,000 (more than 5 trillion dollars)

A majority of these derivatives are focused in the energy and financial sectors, and what we are seeing now is great volatility in both of these sectors. Demand for oil has been grossly miscalculated and when the OPEC nations decided to continue to produce at the same levels after the demand declined, you saw what happened to oil prices at the pump. This is further complicated by the cost of recovering oil from fracking in the US. This bomb is about to go BOOM!

Further complicating the picture is the moves being made by the BRICS and the newly developed AIIB. The Asian Infrastructure Investment Bank (AIIB) is an international financial institution that was proposed by the government of China. The purpose of the multilateral development bank is to provide finance to infrastructure projects in the Asia region. AIIB is regarded by some as a rival for the IMF, the World Bank and the Asian Development Bank (ADB), which are regarded as dominated by developed countries like the United States. The United Nations has addressed the launch of AIIB as “scaling up financing for sustainable development” for the concern of Global Economic Governance. Chinese Premier Li Keqiang affirms AIIB cooperative stance. As of April 2, 2015, almost all Asian countries and most major countries outside Asia had joined the AIIB, except the US, Japan (which dominated the Asian Development Bank, formed in 1966) and Canada. North Korea’s and Taiwan’s applications were rejected. This is a serious threat to the US dollar as the international trade currency and increases the exposure of the big banks in a way that is not yet completely discernible, other than if AIIB has its way, the dollar is in for a big devaluation. Already the AIIB has proposed an alternative to the dollar, called the SDR, which would be asset based something like the following manner.

SDR

And finally, Greece sits on the edge of collapsing the Euro. This will occur if Greece finds some or all of its debt to the ECB and IMF are odious. Odious Debt is: In international law, odious debt is a legal theory which holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are thus considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion.

Today Odious Debt is now a reality in Greece, where Zoi Konstantopoulou, the head of the Greek parliament and a SYRIZA member, released two videos which have promptly gone viral, designed to promote the investigative parliamentary committee to look into the circumstances surrounding the signing of the country’s two bailout agreements that led Greece to implement its austerity measures.

According to Greek Reporter, Konstantopoulou has said that the newly established “Debt Truth Committee,” will investigate how much of the debt is “illegal” with a view to writing it off. Proving that this is more than just a populist stunt, during a vote that took place early yesterday, out of the 300 Greek MPs, 156 voted in favor of establishing the public debt auditing committee. “The committee will examine how Greece entered into the bailout agreements with its international lenders, as well as any other matters related to the memoranda’ implementation,” SYRIZA Parliamentary Secretary Christos Mantas had explained earlier. “We are fulfilling our commitment and the social demand to explore the causes and responsibilities of an unprecedented crisis that devastated the vast majority of society,” Mantas added. If the Greek “Debt Truth Committee” indeed persists with determining how much of its debt is legal and enforceable, and ultimately decides to rescind some (or all) of it, the only question is how long until other countries around the world, all of which are burdened with massive, untenable debt loads across the government, financial and household sectors, decide it is time to do the same and declare a fresh start.

So given these current situations, it is very easy to see just how crazy these “Big Banks” are, and how they are going to come crashing down, given their current exposures. There isn’t enough money in existence to “bail them out” and the impacts on the world’s economy will be felt for decades. It really isn’t a matter of if this current economic situation is going to come crashing down, it is only a matter of when, and “when” looks real big and up close right now.

How “Bail-outs” and Bail-ins” Are Just a Huge Transfer of Wealth

In our continuing effort to educate even those who call themselves “experts” on the economy, we have to continue with the facts that the banksters, MSM, and dupes that call themselves legislators don’t want you to see or understand.  We have, in recent past articles, shown you just the facts about the bailouts and now the bail-ins going on in the EU for what they are, just a huge transfer of public wealth to the hands a few elites in banking and the central banking system.

As we watch the economy continue to falter, and jobs vanish, don’t you wonder where all the so-called QE monies really went that were meant to stimulate the economy? Here we are, 5 years into this so-called recovery and unemployment in the US is still 7.6% and only 47% of Americans hold full time jobs.  The number one employer is WalMart and the number two employer is Kelly Temp Services! In the EU, there is a 40% unemployment rate and people’s bank accounts are being raided without consent to supposedly prop up the banks (Bail-Ins). Government services are being slashed everywhere and still nothing seems to be improving.

Well, even though you are not supposed to understand this, let’s look at the Central Bank Practices and especially at the issue of banks’ reserves at the FED and other central banks in the world. This is a complex subject with much technical jargon that confuses a lot of people. Besides, don’t be surprised that your bank branch manager on Main Street as well as lecturers in finance and economics are also ignorant on this issue. In the case of the latter, this subject is hardly taught in universities. And this is the reason why the scam has not been exposed or understood. But, for those who have a basic idea of bank reserves and how this huge amount of “excess reserves” have been created by the FED, have you asked yourself, “Why have I not spotted this scam earlier?”

Many have been taken in by the propaganda that “excess reserves” is the means to encourage banks to extend credit (give out loans) to desperate borrowers who needed urgent funds to survive and to jump-start their businesses. This propaganda is grounded on the assumption that there is insufficient liquidity in the market. This assumption is misleading.

What are Excess Reserves? The latest figures obtained from the H.3 release from the Board of Governors of the Federal Reserve System (the FED) shows excess reserves of about $1.794 trillion (data as of April 17, 2013)! This level of excess reserves is unprecedented and is the highest since reserves were legislated as a requirement.

Excess reserves are the surplus of reserves against deposits and certain other liabilities that depository institutions (collectively referred to as “banks”) hold above the statutory amounts that the FED requires in accordance with the law. The general requirement is that banks maintain reserves at least equal to ten percent of liabilities payable on demand. There is now data to show that as much as 50% of these “excess reserves” are held for United States banking offices of foreign banks.

 

Let me elaborate. Banks receives deposits from their customers which are inter-alia placed in current accounts (checking accounts) or time deposits (fixed deposit accounts) and which the customer can at any time withdraw from the bank. But, banking practice shows that at any one time, only a small fraction of customers would withdraw their deposits in full. So, there was no need for banks to keep all the deposits in their vaults to meet such a demand for payment. Laws were enacted to allow banks to keep in reserve a small amount of monies to meet such demands. That being the case – if only 10% reserves is all that is required according to banking regulations to meet repayment demands, why should there be such a huge amount of reserves, beyond the legal requirement of 10%?

Understand the fact that when a customer deposits monies in a bank, he is in law a “creditor” (he has loaned the monies to the bank) and the bank is a “debtor” (and he can use the money in any way at his absolute discretion, even to speculate). This is because the ownership of the money has been transferred to the bank. The money is no longer the money of the customer. It now belongs to the bank. And as long as the bank is solvent, and there is a demand for repayment of the deposit, the law of contract stipulates that the bank must repay together with the agreed interest that has accrued.

silver-coins-bars

Now here is where, legally it gets interesting.. if at the time when demand for repayment is made, the bank is bankrupt (i.e. in a liquidation) then the depositor/customer in law is deemed an “unsecured creditor” and must join the queue of all unsecured creditors to share the proceeds of any remaining assets after all secured creditors have been paid. If there are no remaining assets, the depositors get zilch! That is why and as illustrated in the bank confiscation of deposits in Cyprus banks acting in concert with central banks can expropriate all customers’ deposits to pay their secured creditors. You catching on here?

How did the Excess Reserves balloon to a massive US$1.794 Trillion? The Fed’s overall balance sheet has expanded from about $909 billion before the crisis (i.e. before 2008) to about $3.3 trillion in 2013. Of the $2.4 trillion increase, approximately $1.8 trillion is excess reserves. Banks were up to their eyeballs in toxic assets (financial sewage) and they are drowning in this cesspool but for the rescue efforts of the FED and other central banks they would have sunk to the bottom of the cesspool.

The FED created trillions of money out of thin air by a digital entry in its books to purchase the toxic assets (financial sewage) in batches from the banks. The objective of QEs is to save the banks and to save the US Treasury from bankruptcy and not Joe Six-Pack. However, in this article we are focusing on the banks. So, let’s say that the banks HAVE OVER US$10 trillion of financial sewage AND WANT TO DISPOSE THEM WITHOUT AROUSING ANY ALARM.  The monies flowed from the FED to the banks to purchase the financial sewage. The financial sewage is sucked into the FED’s financial vacuum. However the monies are not channeled to the banks’ branches in Main Street to be loaned out to Joe Six-Pack. It is re-routed back to the FED as “reserves”. When the reserves exceed the minimum 10% requirement, the excess is classified as “excess reserves.” This is merely a book entry! And adding insult and injury to Joe Six-Pack, interest of 0.25% is paid on the reserves (i.e. giving profits to the banks).

The banks are allowed to survive in spite of their massive frauds and other financial hanky-pankey. The banks are allowed to use digital technology (e.g. high-frequency trading) to corner the market and destroy Joe-Six-Pack. But, Joe-Six-Pack has to suffer the indignity of unemployment, foreclosures, reduced unemployment benefits, surviving on food-stamps, and other austerity measures. Starting to see the picture here and how this crap is how we are being fleeced like passive little lambs?

“The money flows from the FED to the Too Big To Fail (TBTF) Banksters to Buy Toxic Assets, which is sucked in by the FED’s Financial Vacuum, thereby cleansing the TBTF banks’ balance sheets. The money is then re-routed back to the FED as “excess reserves”.

The FED create monies out of thin air to bail-out the Too Big To Fail banks (TBTF banks) by purchasing their financial sewage (valued at book value as opposed to mark-to-market i.e. instead of paying only 10 cents on the dollar or less, the FED pays dollar for dollar) thereby removing the financial sewage from the balance sheet of the TBTF banks to reflect a “healthier” balance sheet as there are now less financial sewage in the banking system. And, because the TBTF banks are suffering losses, the FED pays 0.25% interest on the “excess reserves” created so as to generate easy profits for the TBTF banks for doing nothing at all. They are earning profits merely from a book-entry in the FED’s books!

The propaganda which I referred to earlier that such monies were meant to enable the TBTF banks to extend credit is therefore bullshit and a load of financial nonsense. So why are the so-called reputable economists at leading universities such as Harvard, Princeton, Cambridge, Oxford etc. touting this propaganda?  In spite of all this past mismanagement, the practices by the TBTF banks is continuing unabated, including the so-called record profits declared by the TBTF banks and the huge bonuses given out to the bankers and their hire-lings. These practices are all just window dressing as long as the toxic assets are not marked-to-market and not declared as junk. If such assets are properly declared, the fiat money banking system would be staring at a bottomless black-hole of toxic assets and indebtedness! What’s worse is these same TBTF banks are still up to their eyeballs in toxic debt, such as derivatives, credit swaps, etc.  In fact JP Morgan Chase alone has exposure more than twice the US GDP! JPMC is exposed just in interest rate derivatives at $45 TRILLION. Take a look at the Fed’s H.8 report to understand how bad it really is.

This has compounded the problem. After the Global Financial Tsunami, all the TBTF banks don’t have enough reserves to meet the withdrawal of deposits placed by customers before the crash. The TBTF banks don’t even have the requisite 10% reserves to meet these demand deposits (Old Deposits).  However, banks are continuing to receive deposits from customers of which 10% of these deposits must be transferred to the FED as reserves. Data shows that customers’ deposits are at an all time high (since 2007), but bank lending is not keeping pace.

Banks are not lending out what they are entitled to do so for two reasons:

1) The banks are using a portion of the “New Deposits” to meet the liability of having to repay the “Old Deposits” in the system. This is because even the excess reserves (created under the QE) are insufficient to meet the demand for repayment of the Old Deposits. So, part of the current New Deposits would be utilized for that purpose. This is the Deposit Ponzi Scheme.

2) Banks are earning no risk profits from interests on “Excess Reserves” at the FED and are only willing to lend to credible borrowers. In the present economic climate, there are just too few credible customers. This is another reason why banks are not lending.

When QE stops, the FED would not be out on a limb because the monies used to purchase the financial sewage from the TBTF banks are still in the FED’s books. The Fed need only to have a reverse entry in it’s books after re-packaging the financial sewage INTO SOME NEW FORM OF FINANCIAL PRODUCT OR WHATEVER (which the TBTF banks are adept at doing before the crash and are still continuing to do so) and dumping them back to the banks and another generation of stupid investors at such time when and if the banks would have recovered. But with the TBTF banks continuing their same toxic practices unabated there is no recovery, ever. Further, with the bank’s unbridled right (sanctioned by law) to confiscate the customers’ deposits (now commonly referred as “Bail-In”) using the Cyprus template, banks have additional financial resources to continue with the plunder and financial rape of the public.

I hope this helps us understand that this unabated transfer of wealth ends with our economic enslavement. The public must be able to understand these fundamentals and demand the end to this fractional banking system and the end of the FED. Your congressmen and women are dupes in this game, as they really don’t understand and therefore do what they are told to do. Inform them WE GET IT and WE DON”T LIKE IT, AND IT MUST STOP NOW! Fire the Fed, break up the TBTF banks and return to pre-1913 banking system controlled by the US Treasury. WAKE UP!  A special thanks to Matthias Chang of Global Research, who unknowingly contributed so much to this article.

Do You Really Understand What the FED Has Committed on Your Behalf?

When you look at the breakdown of the bailouts and QE programs as below, it becomes quite apparent how really insane this monetary policy really is.  What’s more frightening is that the EU’s policies are WORSE! The FED is printing money willy-nilly and the ECB is slowly sucking the economic viability out of the EU economy with nihilistic austerity programs, and even in the light of real evidence of the damage, they continue to enact these insane policies.

monetary policyrecap

To put in perspective the size of just the US money printing operation, consider that the “net” figure of $863 billion represents the total face value of Federal Reserve Notes in circulation, or, it represents nearly 50% of the GDP. To put it another way, you via congressional monetary policy delegated to the FED’s monetary policy has taken actions that put every man, woman, and child in this country in debt to the tune of $237,500! Translated to a family of four that’s a cool 950 LARGE!

While the FED speeds down the road to a hyperinflationary crash, and the EU is looking at a third round of recession and might even be looking at the “D” word, deflation, China is creating gold backed ETFs and is entering market places globally, the rise of the Red Dragon. The monetary policies of Russia, China, and most of the so called BRIC nations seem to be adapting more correctly to world markets and demands.

I don’t remember us being asked to comment or god-forbid assent to such policies. But hey, according to Jamie Dimon in Davos Switzerland  explaining why people don’t need to know what’s going on in the banking world. It’s too “complex.” Just know that their fee comes from managing this ball of financial confusion. And that’s all you need to know. Really? How about what I understand, that this is a house of cards game being played in an unregulated casino and that it will collapse without any question and therefore by definition is insane.  I know that’s complex but I’m just an ordinary guy.

U.S. President Barack Obama on Thursday nominated Mary Jo White, a former U.S. attorney who built a reputation prosecuting white-collar criminals, terrorists and mobsters, to lead the Securities and Exchange Commission.  The agency has a lead role in implementing changes on Wall Street.

White spent nearly a decade as the U.S. attorney in Manhattan, handling an array of white-collar crimes and complex securities and financial fraud cases. She brought down mobster John Gotti and won convictions in the 1993 World Trade Center bombing and the 1998 bombings of two U.S. embassies in Africa.

Obama said that experience makes White well-suited to implement legislation he championed to change the behavior on Wall Street. “I’d say that’s a pretty good run. You don’t want to mess with Mary Jo,” Obama said at the White House. “As one former SEC chairman said, Mary Jo does not intimidate easily, and that’s important because she has a big job ahead of her.

That’s the positive “spin”. The negative side of this is that White also represented JPMC, and others as defense attorney in SEC inquiries. So in a sense, White knows where the bones are buried.  The Wall Street Pit bulls aren’t barking so it is hard to read what is next.  Certainly, in spite of the magnitude of evidence of felonies being committed by the Wall Street Boys, no one has gone to jail. Is that about to change? Only time will tell.  Oh yeah and one other thing, you writing the new head of the SEC and after you have congratulated her on her significant appoint, urge her to begin immediately to vigorously prosecute those where the evidence is certain.

You know we do not need to understand what an ETF is or what a credit default swap is, because in the end it is just this simple.  These ego-maniacs have bet the farm and put up the family as collateral. It really is that real. So do you have anything to say about that?

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Updates from the Economic Warfront

Three years ago, as I began my ranting against the bankster elitists, I had stated their plan for economical slavery was unfolding in the most transparent way.  I stated at the time the mortgage loan debacle was only the first step.  I said at that time that based on the strategic use of credit swaps and derivatives, the next target was going to be both corporate and public pension plans. Indeed this began unfolding around 2009 and continues to this day.

At the time I also stated that after that goal was completed, the next target in their gun sites would be state and sovereign wealth. Again, this is exactly what is happening. First was Iceland, then the weaker members of the EU, and now is extending into the stronger economic nations such as the UK, France, Germany, the US, Australia and Canada.

Of all of these nations, only Iceland and the will of their people have prevailed.  Ireland is also showing some signs of effective resistance. The rest of the governments, under the rhetoric of “necessary austerity’ are slowly killing their economies and in the case of Greece and Spain, are already “clinically dead”. You see there is only one simple question that when answered reveals all.  When we talk about sovereign debt, one has to ask, “Who is this vast amount of money owed to and how did they acquire this debt obligation?”

We all know the answer to this question.  The bankster’s greed has continued unabated and now there isn’t even any attempt by the banksters to “paint lipstick on the pig”. They seemed until very recently unafraid of rebellion by the masses, criminal actions by governments, or any competitive actions against their plans.  Why were they so confident?  Their confidence stemmed from the reality that they have prepared well in advance to insure they “owned” the political and legal arms of the governments world-wide thus preventing any criminal penalties for their brazen fraud and theft.  Large fines were acceptable and a part of “doing the business”. The control of the political process insured they could endlessly print fiat money to “finance” their ongoing rape of the world’s economy.

They had also correctly anticipated that the masses would eventually try to rise up, so they upgraded both sovereign and state and local police forces to paramilitary capabilities.  They would simply overwhelm any efforts before these “uprisings” could gain momentum.  We have to admit they had anticipated each and every step very correctly and have been effective to date in squashing any meaningful resistance.  Until now…..

In their hubris, they may have made gross miscalculations in their unbridled greed quest. First, let me state that we try to remain apolitical in the information we present in this blog. However if the next story is true, then it is a matter of justice and patriotism to report, not a political leaning, one way or the other.

The election in the US is a very good example of how elitists have horribly underestimated the collective intelligence and will of the people. Remember the Karl Rove and Limbaugh ranting pre-election that it would be a landslide for Romney?  They were certain of this because first they were effectively suppressing the vote and just in case that wasn’t enough, they were sure they had effectively “rigged” the election in key states like Ohio, Virginia, and Florida.

However, something went very wrong.  Romney was quoted as being “shell-shocked” and Karl Rove displayed his denial breakdown on national TV when Ohio was declared for Obama.  What happened? From our sources, the real story may be revealed in the coming months, if the information given to the FBI sees the light of day.

Apparently, like in 2004 and 2008, Rove and his operatives had developed a sophisticated computer program called ORCA to manipulate the data in the vote tally process and had this program embedded in various areas.  Apparently this sophisticated program would intercept election data from various reporting stations, manipulate the results and then send it forward to its intended destination.

This scheme was however uncovered by cyber sleuths under the Anonymous banner and this group had even warned Rove, et al, directly that this plot would not be allowed.  See the warning here.

From our sources, we learned that these cyber sleuths hacked the ORCA program and placed a firewall called “The Great Oz”.  According to the sources, this not only prevented ORCA from doing its job, it also prevented any of the Rove operatives access to the program during the election process. Apparently Rove’s computer techs tried 105 times to penetrate “The Great Oz” using different means and passwords, to no avail.  Comcast finally shut down all operations under the guise of a DDOS attack threat.  Immediately after taking this action, these cyber sleuths, who called themselves “The Protectors”, turned all of the information over to the FBI.  Based on this information, if it is true, here is Good Ole Karl’s recurring nightmare:

( this photo is not real)

The same kinds of cyber activity are going on as we speak in relation to the Israeli’s attack on Gaza. Apparently over 9,000 Israeli websites belonging to government and banking systems have been attacked in the last week.  In both cases here, what was underestimated by the cabalists is the intelligence and resources of the “ignorant” masses.

As the pan EU uprisings increase, we are seeing more and more police and firemen joining the ranks of the protesters.  In Spain over the weekend, about 5,000 police officers marched through the center of Madrid on Saturday to protest salary cuts and the thinning of their ranks as Spain grapples with its sovereign debt crisis.

The officers, who had traveled from across Spain, rallied three days after the nation was gripped by a general strike over the austerity cuts. Health and education workers have already taken part in similar marches.

“Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians,” read one banner held aloft by a line of officers as they marched to the interior ministry.

The rally had been called by the main policing union SUP. “Each year, between 1,500 and 2,000 police officers retire and 125 are recruited, which means in three or four years, there will be more insecurity and crime in Spain,” warned SUP general secretary Jose Maria Sanchez Fornet in a speech outside the ministry.

It would seem that real progress is beginning to correct this global economic imbalance and more and more people are beginning to believe they are not powerless to affect the changes that would begin to create global economic systems democratically based and underpinned by ethical standards more appropriate to the realities of the 21st century.

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Is It Time to Say Goodbye to Capitalism?

As we have watched the last 5-10 years unfold economically in the world, it has become intuitive to all that there is no doubt that banksters control the economy and control the world’s political realities, especially demonstrated by the effect of the Citizens United ruling on this last presidential election.  To be honest, it is not like they didn’t tell us what they were doing or planning, and it was not like we were not warned by every leader with integrity.

So why is it now we remain like passive little sheep being led into economic slavery? Are we so programmed, so lulled to sleep, that we don’t see these final trump cards being played? Are the predictions of these arrogant evil few correct in that we either don’t see what’s happening or we are so ignorant and lazy as to resist this blatant final fleecing?

Maybe it is time to just reconsider the words of both the Cabalists over the years that basically said it forthrightly and the words of the great leaders who tried so desperately to warn us.  We would have you consider the following in the chronological order these men and words were delivered to the world.

First the bankster/elites:

“The bank hath benefit of interest on all moneys which it creates out of nothing.” –  William Paterson, founder of the Bank of England, 1694.

“The few who understand the system, will either be so interested from its profits or so dependent on its favors, that there will be no opposition from that class.” – Mayer Amschel Bauer Rothschild.

“Give me control of a nation’s money and I care not who makes its laws.”
– Mayer Amschel Bauer Rothschild.

“The world is governed by very different personages from what is imagined by those who are not behind the scenes.” –– Benjamin Disraeli, First Prime Minister of England, “Coningsby, the New Generation”, 1844.

“When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time, a legal system that authorizes it and a moral code that glorifies it.”
– Frederic Bastiat – (1801-1850) in Economic Sophisms.

“The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the United States, if they remained in one block and as one nation, would attain economic and financial independence, which would upset their financial domination over the world. The voice of the Rothschilds prevailed… Therefore they sent their emissaries into the field to exploit the question of slavery and to open an abyss between the two sections of the Union.” –  German Chancellor Otto von Bismarck.

“Those who create and issue money and credit direct the policies of government and hold in the hollow of their hands the destiny of the people.” – – Reginald McKenna, former Chancellor of Exchequer, England

“Bankers own the earth; take it away from them but leave them with the power to create credit; and, with a flick of a pen, they will create enough money to buy it back again… If you want to be slaves of bankers and pay the cost of your own slavery, then let the bankers control money and control credit.”
– Sir Josiah Stamp, Director, Bank of England, 1940.

Today, America would be outraged if U.N. troops entered Los Angeles to restore order. Tomorrow they will be grateful! This is especially true if they were told that there were an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well-being granted to them by the World Government.” – Henry Kissinger, Bilderberger Conference in Evians, France, 1991.

 “Some even believe we (the Rockefeller family) are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure – one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.” – David Rockefeller, Memoirs, page 405.

“We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.”
– David Rockefeller

“We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years… It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.”
– David Rockefeller, Bilderberg Meeting, June 1991 Baden, Germany.

In the next century, nations as we know it will be obsolete; all states will recognize a single, global authority. National sovereignty wasn’t such a great idea after all.”
– Strobe Talbot, President Clinton’s Deputy Secretary of State, Time Magazine, July 20th, l992.

We can’t be so fixated on our desire to preserve the rights of ordinary Americans.” – Bill Clinton, USA Today on 3/11/93, page 2a.

We also cannot assert that we haven’t been warned from the very beginnings of our nation by the very founders and subsequent truly patriotic statesmen:

“If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations.” – Andrew Jackson.

“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, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” – Thomas Jefferson.

“The system of banking [is] a blot left in all our Constitutions, which, if not covered, will end in their destruction… I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity… is but swindling futurity on a large scale.”
– Thomas Jefferson

“I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the Government at defiance. The issuing power should be taken from the banks and restored to the people to whom it properly belongs.” – Thomas Jefferson.

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.” – James Madison.

“I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands, and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war.” – Abraham Lincoln – in a letter written to William Elkin.

Whoever controls the volume of money in any country is absolute master of all industry and commerce.”
– US President James A. Garfield

A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the Nation and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world – no longer a Government of free opinion no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small groups of dominant men…. Since I entered politics, I have chiefly had men’s views confided to me privately. Some of the biggest men in the U.S., in the field of commerce and manufacturing, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.” – Woodrow Wilson – In The New Freedom (1913).

The Federal Reserve Bank of New York is eager to enter into close relationship with the Bank for International Settlements….The conclusion is impossible to escape that the State and Treasury Departments are willing to pool the banking system of Europe and America, setting up a world financial power independent of and above the Government of the United States….The United States under present conditions will be transformed from the most active of manufacturing nations into a consuming and importing nation with a balance of trade against it.” – Rep. Louis McFadden – Chairman of the House Committee on Banking and Currency quoted in the New York Times (June 1930).

“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson.” – U.S. President Franklin D. Roosevelt in a letter written Nov. 21, 1933 to Colonel E. Mandell House.

“The Trilateral Commission is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States. The Trilateral Commission represents a skillful, coordinated effort to seize control and consolidate the four centers of power–Political, Monetary, Intellectual, and Ecclesiastical.” – U.S. Senator Barry Goldwater, his book “No Apologies”, 1964.

There are many more today who have also tried to sound the alarm, but we believe we have made the points with this sampling.

So there you have it, this insidious plan “hatched” over four hundred years ago has continued unabated and in our faces, and despite so many warnings we have failed to mount any effort to correct the problem. How does that old saying go? “First time shame on you, second time shame on me.”

So what should we do? Is it too late? Are we powerless to act? Not at all.

First we must face the fact that the continual perpetuation of these frauds will only create further problems.  Secondly we should begin the dialogue to facilitate the development and reconstruction of our society in the interests of the people through the removal of fractional banking systems.

Thirdly, we must demand the release of imprisoned and hidden technological advancements and ensure the promotion and development of these technologies in the interests of the people. These technologies will have a profound effect on our economies and living standards. Finally, we must insist that the agencies responsible for administrating the laws of this country do their job and remove the heads of the bureaucracies and banking fraternities that continue to perpetrate this fraud, forcing their hand through litigation, including class action suits by citizens.

Why You Need To Try To Understand How Markets Work

On September 29, in the District Court of the District of Columbia, Judge Robert Wilkins threw out U.S. Commodity Futures Trading Commission’s(CFTC) new position-limits rule, sent the regulation back to the agency for future consideration. Wilkins ruled by law, the CFTC, which was required to prove that the position limits in commodity markets are necessary to diminish or prevent excessive speculation—. So why does that matter? It may sound a little technical if you haven’t been following this story, but this decision WILL affect the cost of your food, the cost of your fuel, and many other basic necessities of life.

Position limits are the tool in place to limit Wall Street speculators from gumming up commodity markets. If they are not limited in their speculative bets that they place, they have a tendency to unmoor commodity prices from supply-demand fundamentals.

So, for example, if you look at crude oil, the price of crude oil is way above what it should be if supply-demand just played a role. In fact, you know, most of the big oil companies say crude should be at about $70, $75. It’s now—it was up to $100 this week, went down to $91. The simple point is, look at gasoline, which is the main derivative of oil. You’re paying a premium that has nothing to do with production and has everything to do with lining the pockets of Wall Street.

So position limits say no individual player or finance institution can have more than x percent of any specific commodity market. And that used to be the case, right? Well, it still is the case, ironically enough. But Congress, in passing Dodd–Frank, wanted the position limits to affect a much broader market, which Wall Street uses to speculate on food and energy prices. So the more limited rule is still in effect that emanates from pre-Dodd–Frank. But Congress—well, the question was: did they order the CFTC to put these position limits in effect, or tell the CFTC, only do it if you think it’s necessary and appropriate? And that was the essential issue.

And the argument that the CFTC and many market reformers made, is that Congress couldn’t be clearer that they were very worried about the role speculation was playing in inflating food and energy prices—they demanded the CFTC to do something about it, and they said the vehicle you should use are position limits as appropriate.

However, in this ruling the district court judge said the word “as appropriate” also applies to whether or not you do the project to begin with. So he sent it back to the agency and said, now you’ve got to tell me by a majority vote—it’s a five-person commission; the original rule came out on a three-two vote—now a majority of the commission have to tell me that you’re doing this in a way that’s appropriate. So he’s added a burden on the CFTC and many members of Congress, by the way, to validate a view that was never intended. Can you now see how these banksters and criminals are “rigging” the game, because if the legislation says, do it, you don’t have to study whether you need to do it, and they had a three-to-two vote in the commission, which already agreed with that interpretation. You also need to understand that at one point the CFTC came up to 105 studies that showed unless you limited Wall Street speculation, we were going to have inflationary commodity prices that had nothing to do with supply-demand fundamentals. Duh!

We have gasoline prices as high as $5 a gallon in some regions of the country and food prices are beginning to soar out of sight. However, this does not only deals with what United States citizens pay for their gasoline, their heating oil, their energy products, and their food products, but in the Third World, many Third World countries believe speculation is leading to starvation because it’s so inflating the price of food beyond that which market fundamentals would dictate.

So what this judge has done is essentially set this thing aside. For at least a half-year, maybe a year, we will not have the kind of regulation that Congress demanded. And of course you’ve got the problem that the Republicans are fighting this agency by limiting its appropriations through the House of Representatives so it doesn’t have enough personnel to continue the legal battles  and doesn’t have enough enforcement personnel to police these speculators.

We must not just, as citizens, defer understanding these things because “they are just too complicated to understand” or have the attitude that it only “effects banker and investors” because that is exactly what these banksters and speculators are counting on.  Shock your congressional candidates with your knowledge and demand that they support dictating BY LAW that position limits are to be imposed.  There are already 49 million Americans on food stamps and 1 in 6 Americans go to bed hungry every day now! So what, we are going to wait until half of us are starving and cold?

Why There is A Strangle Hold on the Global Economy?

As we move into the fifth year of this most recent global economic crisis, much has been written about the criminality of the banking community, sovereign debt, and the impacts of austerity measures, but that is just part of the story.  To really understand the “whole of it” you also have to look at food prices, the escalating health care system delivery costs, and finally and most disturbing the cost of higher education.  All of these sectors have been usurped by a “corporate’ for profit mindset and are totally out of control.

Since the collapse of 2008, speculators have moved into the commodities sector and food prices have escalated out of control, essentially because there is NO control. The prices of all key staples increased, except for rice.Maize prices increased by 9%, soybean oil by 7%, wheat (U.S. HRW) by 6%, and sugar (world) by 5% just this last year. These price variations were the largest increases observed since June and July of 2011. The price of rice (Thai, 5%) declined in the same period by 6%, adding to the price decline of 2% observed in the fourth quarter of 2011. Both abundant supply and strong competition among exporters have caused the international price of rice to decline.  Although food production outlooks remain strong for 2012/13, there is a global food crisis. Why? Profiteers plain and simple.

Twenty years ago U.S. healthcare cost $2800, on average, per person. Ten years ago, that figure had risen to $4700 per person. And four years ago, in 2008, it was $7500 per person. The cost to cover the typical family of four under an employer plan is expected to top $20,000 on health care this year, up more than 7% from last year. These health care cost increases have increased the number of people dying because of a lack of access to health care and has resulted in a substantial increase in personal bankruptcies, especially among retired people. Not only is there no controls over these costs, the government has essentially prohibited competition by restricting large governmental providers from even negotiating more competitive costs.

But nowhere is the lack of control more apparent that in the cost of higher education. This month information was released regarding consumer credit growth.  Most of the headlines took this as positive economic news but digging deeper into the data we realize that the bulk of the growth came courtesy of exploding student debt.  Even with the encyclopedia amount of data showing how horribly run many for-profit colleges are run, the government continues to back these risky endeavors while saddling young Americans with unrelenting levels of debt.  It doesn’t take a rocket scientist to see the predatory nature of these operations just like it was easy to see subprime loans were going to end badly.  So why continue to allow this to go on?  Why is the system so adamant on continuing to pour layer upon layer of student debt syrup onto the younger segment of our nation that is already struggling in the employment market?

A recent University of Georgia study is sobering in its findings.  When comparing the UG tuition escalations to other higher institutions here are their findings:

Undergraduate

Residents

The average 10-year increase in tuition and fees for residents was 111%. The University of Georgia’s increase was 156%, 3rd highest out of 13 institutions.

The largest increase occurred at University of Arizona (231%), University of California-Davis (185%), and University of Georgia (156%).

The lowest increases were at University of Maryland (58%), Louisiana State University (65%), and University of Missouri (85%).

Over the past 5 years the University of Georgia has had the highest increase (89%), followed by University of Arizona (83%), and University of California-Davis (75%).

Over the past 5 years University of Maryland has had the lowest increase (8%), followed by Ohio State University (17%), and University of Missouri (22%).

Non-Residents

The average 10-year increase in tuition and fees for non-residents was 94%. The University of Georgia’s increase was 138%, 2nd highest out of 13 institutions.

The largest increases occurred at University of Florida (163%), University of Georgia (138%), and University of Arizona (138%).

The lowest increases were at North Carolina State University (43%), University of Missouri (58%), and University of Kentucky and Iowa State University with an increase of 72% each.

Over the past 5 years University of Arizona has had the highest increase (80%), followed by University of Georgia (60%) and University of Florida (59%).

Over the past 5 years North Carolina State University has had the lowest increase (15%), followed by Iowa State University (18%) and Ohio State University (22%).

How much debt have we loaded onto the backs of our youth and young developing professionals who are the essential elements to stimulating our economy?  It’s this big:

How out of whack is this really? Consider this fact, the total combined GDP growth in the US from 2008 until 2011 was a mere 2.7% TOTAL!

When you wonder why the global economy is imploding, that there is 25% percent unemployment of the educated technically capable young productive people, and why there are riots bursting forth in every developed country on the planet, remember these facts.  A global oligarchy has usurped and trumped government and now believes they can complete a global economic enslavement plan. If you don’t see this you are blind and in denial. If we do not unite soon, this is a fait accompli and you will have to explain to your grandchildren why we didn’t do anything to prevent their bondage.  You up for that?