Fed Reserve Built America Into Giant Debtor's Prison

Every day is Trick or Treat Day for the gnomes. 

This artwork is courtesy of Mr. Taylor.

 Elaine Meinel Supkis

I hurt my fingers yesterday so I couldn't post anything. Now, with band aids all over the place, I can type again. Typepad continues to annoy me with bugs and a refusal to understand their coding is awful. But on to less serious matters [hahaha] the economy: time to pause and look at a bunch of graphs. They show a rapidly deteriorating situation which the US has never had before. Roubini's RGE Monitor publishes a ridiculous analysis about the Derivatives Beast. Evidently, this economist named 'Pickel' thinks there is no problem, all is well. The Beast is NOT eating our banking gnomes and spitting out bones! Right. And the Middle East is now sliding into a pre-revolt mode as the oil kings decide to cut welfare payments. Bin Laden is ecstatic.

From Roubini's web page comes this utter rot---Insight: The CDS sector is not the central villain PrintShare Robert Pickel

Last week saw an important milestone in the credit default swaps sector, when counterparties to CDS trades on Lehman Brothers cash-settled their transactions.

Based on a protocol and auction process developed by ISDA, protection sellers paid 91 cents on the dollar to protection buyers. An estimated $6bn to $8bn was paid out. Over the past 25 years, the privately negotiated derivatives industry has developed a robust framework – one that governs and guides participants through such an event, and which includes procedures and processes for valuing and unwinding trades. Recent defaults show the value of these efforts – the industry’s infrastructure clearly works.

Just as clearly, the Lehman default and settlement are not the financial catastrophe CDS critics claimed they might be. The widely cited industry estimate of $400bn in notional amount of Lehman CDS trades outstanding includes a significant number of offsetting transactions. Dealer firms generally have minimal net exposure via CDS; if they sell protection, they also generally buy protection to offset the risk. Net these positions out and net amount of risk transferred is a low single-digit percentage of the notional amount. Cash payments on Lehman were about 91 per cent of that net amount.

Two more points must be kept in mind. First, companiees are required to mark positions to market, and they have already calculated the impact of Lehman’s default on their financials. Second, companies require counterparties to post collateral to back their exposures, so most of the $6bn-$8bn paid out was already collateralised. The bottom line is that groups had little incremental exposure to the Lehman cash settlement.

It’s also worth noting that, in spite of the failure of Lehman, as well as several other large counterparties, the CDS business continues to function effectively. CDS have proven to be the main – and sometimes the only – way to shed risk or express a view on market behaviour. While cash, securities and money markets have seized up, the CDS business still operates.

Here is part of my reply to this utter tripe:

'This guy is NUTS!!!! We just saw not only a 91% loss in a derivatives swap meet, AIG is now gulping down well over $140 billion in just THREE WEEKS and not at the end of this swap of derivative failures for US taxpayer dollars!

This is UNPRECEDENTED.'

Back to today:

On the other hand, the entire collapse of the G7 banking system is not due to derivatives. The Derivatives Beast may be eating up all the major banks in the G7 stellar complex but the real reason 'liquidity' dried up was due to the sudden unwinding of the Japanese carry trade! Even Bloomberg news admitted that most of the world's monetary expansion of the last 10 years has been nearly entirely due to the Japanese carry trade!

Pickels can't see this, of course. The mantra hammered into the noggins of all the economists in America is very simplistic: China is undermining world trade by using cheap labor. Even though China is not the world's number on export profit center, economists focus only on sales, not profits.

This plagues a lot of commentary on capitalism. I wonder why? One would imagine that everyone in the US would be hyper-focused on capital creation! But we are not.

This, not China, lies at the heart of what is going wrong. Americans have become so accustomed to going into debt ever since Nixon cut the gold peg from our now-fiat dollars that we imagine, we can skip the business about profits and simply have a churning economy based on consumerism and debt.

This is why not one of the solutions to our economic collapse are doing even the slightest good. The anxiety of the G7 central bankers is all about restarting lending. It is all about seeing if they can get more people to borrow more money. To make this an alluring prospect, they are all grinding out loans at ridiculous interest rates.

Back to Pickles: like many of the RGE analysts, he cannot really understand the role the Japanese carry trade played in the creation of global debt and global inflationary bubbles. The Derivatives Beast was created by the banking gnomes over the last 20 years as a tool with which they could lend recklessly while being protected from losses. These losses are also called 'bankruptcies.' This, in turn, are massive wealth destroyers.

Recessions aren't simply reductions in consumption. They are wealth destruction cycles. The entire excuse for having central banks is so they can prevent these periodic cycles of wealth destruction.  But even the briefest look at history clearly shows that the ONLY thing the consortium of central bankers have succeeded in doing is this: They have MEGA-BUBBLES AND MEGA-BUSTS!  

This is a notable failure.  Many people who are critics of this system restlessly seek someone responsible.  They light on various names and people.  A common mistake is to blame various ethnic groups such as the Japanese or Jews or the Chinese or the Arabs.  Some people even blame one of the oldest groups who have controlled much of the earth for the last 500 years: the ruling elites of Europe, the Old Nobility. 

Everyone has exploited the modern system of interlocking central banks. This is because it makes people fabulously wealthy....but only during the bubbles.  During the collapses, all hell literally breaks loose.  And even though people assume ruling elites in Arabian lands or Merry England want chaos, this is FALSE. 

Or rather, the chaos is supposed to happen far, far away.  In Afghanistan, for example.  That is a favored site for chaos between empires.  But no: the chaos from bubbles bursting always comes home.  When kingdoms or countries go bankrupt, revolution is not far behind.  And revolutionaries are, by definition, outsiders.  

Mr. Pickles doesn't seem to do much history.  The whole Derivatives Beast thing was an attempt by the central bankers to expand credit when the world was awash in credit.  Already, one of the G7 central banks flooded the world with liquidity via 0% or slightly higher interest rates.  

This unprecedented and very long duration of these interest rates in a world undergoing inflation was very deadly since Japan is the world's #2 economy.  The fact that all the central banks are now plunging into the same abyss means that the Japanese carry trade will NOT resume.  Instead, the whole of the top economic consuming nations on earth which are Europe and North America, will try to go on a huge consuming binge, directly lending to themselves money at infinitely cheap interest rates.

This, in turn, will fuel Asia's industrial development. This is why China supports this business.  The battle between China's central bank and Japan's central bank ended several months ago.  But I suspect, it will re-ignite due to some very shocking news out of Japan concerning a top Japanese general blaming China and the US for all of WWII.  More about that later.

Asia has embarked upon a massive shifting of production from Europe and North America to Asia.  This is simple: the physical facilities of manufacturing are not so easy to move if a government is determined to keep them.  The US voluntarily gave up our industries because we wanted no inflation instead of facing the facts about inflation.

Namely, we wanted money growth with no downsides.  This brings us back to the Derivatives Beast: it grew in direct proportion to the banking gnomes burying inflation in interesting places.  IT INFLATED TREMENDOUSLY.  When inflation finally poured into commodities, the shocking truth came out.  Inflation was really running at over 12% a year.  This wasn't isolated inflation.  This was global inflation.  

Proof: even the strongest currencies with interest rates above 6% saw inflation!  More proof: even Japan, with severe suppression of wages of 80% of the population, still saw inflation over 3% a year!  Now, inflation seems to be receding but it is not.  It is continuing to grow in the darkness.  The reason we don't see it temporarily is simple: all the investors are removing their money from hedge funds and investment funds and HIDING it!  And they are hiding it from the Derivatives Beast. 

Anyone stupid enough to keep their money in the system is seeing it lose value faster than gold or oil is dropping.  So we have lots of cash sitting idle.  And it will sit idle until the Beast is done eating.  And it has barely begun.  The fact that all the major investment banks on earth are rapidly going bankrupt or have ceased growing, isn't due to there not being enough money.   THE MONEY IS BEING HIDDEN RIGHT NOW!  People are waiting to see what item can be turned into an instant bubble.

Now, let's go into the past again:

Congressman McFadden on the Federal Reserve Corporation Remarks in Congress, 1934:

"If this United States is to redeem the Fed Notes, when the General Public finds it costs to deliver this paper to the Fed, and if the Government has made no provisions for redeeming them, the first element of unsoundness is not far to seek.

"Before the Banking and Currency Committee, when the bill was under discussion Mr. Crozier of Cincinnati said: 'The imperial power of elasticity of the public currency is wielded exclusively by the central corporations owned by the banks. This is a life and death power over all local banks and all business. It can be used to create or destroy prosperity, to ward off or cause stringencies and panics. By making money artificially scarce, interest rates throughout the Country can be arbitrarily raised and the bank tax on all business and cost of living increased for the profit of the banks owning these regional central banks, and without the slightest benefit to the people.

The 12 Corporations together cover y and monopolize and use for private gain- every dollar of the public currency and all public revenue of the United States. Not a dollar can be put into circulation among the people by their Government, without the consent of and on terms fixed by these 12 private money trusts.'

"In defiance of this and all other warnings, the proponents of the Fed created the 12 private credit corporations and gave them an absolute monopoly of the currency of these United States- not of the Fed Notes alone- but of all other currency! The Fed Act providing ways and means by which the gold and general currency in the hands of the American people could be obtained by the Fed in exchange for Fed Notes- which are not money- but mere promises to pay.

"Mr. Chairman, if a Scottish distiller wishes to send a cargo of Scotch whiskey to these United States, he can draw his bill against the purchasing bootlegger in dollars and after the bootlegger has accepted it by writing his name across the face of it, the Scotch distiller can send that bill to the nefarious open discount market in New York City where the Fed will buy it and use it as collateral for a new issue of Fed Notes. Thus the Government of these United States pay the Scotch distiller for the whiskey before it is shipped, and if it is lost on the way, or if the Coast Guard seizes it and destroys it, the Fed simply write off the loss and the government never recovers the money that was paid to the Scotch distiller.

"While we are attempting to enforce prohibition here, the Fed are in the distillery business in Europe and paying bootlegger bills with public credit of these United States. "Mr. Chairman, by the same process, they compel our Government to pay the German brewer for his beer. Why should the Fed be permitted to finance the brewing industry in Germany either in this way or as they do by compelling small and fearful United States Banks to take stock in the Isenbeck Brewery and in the German Bank for brewing industries?

"Mr. Chairman, if Dynamit Nobel of Germany, wishes to sell dynamite in Japan to use in Manchuria or elsewhere, it can drew its bill against the Japanese customers in dollars and send that bill to the nefarious open discount market in New York City where the Fed will buy it and use it as collateral for a new issue of Fed Notes- while at the same time the Fed will be helping Dynamit Nobel by stuffing its stock into the United States banking system.

"Why should we send our representatives to the disarmament conference at Geneva- while the Fed is making our Government pay Japanese debts to German Munitions makers?

All over the web, I read spurious analysis that often starts with, 'This GLOBAL banking mess has never happened before!'  This false story irritates me to death.  Since the birth of banking, it has been an international/trade operation.  Nay, banking was launched ONLY for international/trading purposes!  And funding wars, of course.  The bankers were more than happy to lend to foreign lords so they could go to wars.  

But the international character of banking is the basis of banking.  Banks were NOT started so people could buy property!  In the Middle Ages, there were several interesting ways of gaining property: war, marriage or fealty deals with kings.  And the Church gained via death bequests.  And kings seized this property from the Church in various ways like Henry VIII of England.  People didn't buy land.  

There was another way: trading one property for another.  But the preferred way remained the most ancient: sex and war.  And frankly, we are never far from this.  The US did this recently to Iraq.  We wanted the oil so we invaded.

No, banks were mainly for traders.  I have seen short histories of banking where the authors would explain that people would want to protect their gold by giving it to a banker with a safe. 

But why would they do that?  If they were rich enough to have gold, they were rich enough to hire guards and to hide the gold, themselves.  No, the people who parked money with someone else were the traders who had to move from place to place.  And they didn't park it with anyone.  They had to park it with a family they could trust, one that had members across Europe and Asia. So a simple letter would effect a transfer of value from one place to another.  

All paper currencies are contracts.  I wrote about this in the past.  If you read the language on older paper currencies, they are obviously contracts.  The very first paper money issued by the new US government were covered with fine print detailing how the notes were issued, how they could be used and who was responsible for REDEEMING them!  An important issue that is now hidden totally from the unsuspecting public today.

The conservative Congressman from 1934 is basically complaining that the US dollar was now being used for global trade and bills were being created overseas that eventually turned into dollars and thus, the US lost control of its own currency!

Well, this is happening today, in spades!  The world mostly uses dollars and so, they create dollars via debt creation.  And no one created more 'debt for export' than Japan.  The Bank of Japan, not the Federal Reserve, is the real agent who is 'printing dollars'.  But this is not discussed at all by much of the media.  

I saw in a New York Times editorial the other day, a long chat about the economic mess.  Like most people, the unwinding of this mess is blamed on US home owners who are too deep in debt.  As if they could magically make these debts appear!  Now, the government must bankroll a reduction of these debts.  And the banks which manufactured money in Japan and then parked it here, will demand the Treasury and the Federal Reserve turn these Japanese debts into AMERICAN CURRENCY.  Which flows back overseas again!

Click here to see photos showing the course of hyper-hyper inflation in Zimbabwe:

If you think that the current economic crisis is something that has never happened in history before, you may be wrong! After the collapse of the agriculture sector in Zimbabwe in 2000, the inflation in that country skyrocketed to 231 million percent a year! Just think about it - 231 000 000%! Unemployment went up to 80% and a third of country’s population left it. Let`s now have a look at the photos that you may not be able to see anywhere else in the world. Here is a boy getting change in 200 000 dollar notes!

Not a soul on earth wants Zimbabwe's paper money. But everyone on earth wants dollars.  If all the dollars floating about the planet suddenly come home, this is what it would look like: to buy a one pound loaf of bread, you would need 10 pounds of paper money.  This, of course, makes no sense at all.  But Zimbabwe shows that hyperinflation isn't just a Weimar nightmare.  It can happen to anyone.

So it is now time to visit the Federal Reserve to see what is going on this week [click on images to enlarge]:

M1 money stock:

So, this last week, the Federal Reserve increased the basic money supply exactly the same amount as on 9/11.  At 1% interest post-9/11, we saw a global equities inflation bubble.  Then, when the climbing money supply leveled out, we saw a commodities inflation spurt!  This was all the US dollars coming out of hiding when it could no longer be parked on top of global housing or stock markets.  

Now we are at a LOWER interest rate and the same day, the Fed jumps the M1 money supply.  And smart people will bet that we get a repeat of the previous 5 years.  But this cannot happen unless first, enough debt disappears via bankruptcy.

In the previous downturn, that idiot, Donald Trump, went bankrupt.  Then, he got  even more money to waste on stupid real estate deals.  When he goes bankrupt again, this will prepare the ground for him to get even more loans to do this again.  Unless he gets arrested. 

Right now, the central bankers are struggling to prevent the cleaning house via bankruptcies.  They hope to increase lending and increase trade without first eliminating at least 50% if not 100% of the previous dollars created between 2002-2006.

Monetary Base [BASE]:

The monetary base ceased growing in Asia so it is now being artificially grown here in the US.  Only we didn't allow for most of the previous, Asian-manufactured debt to be cleared out via bankruptcy.  Nor has the Derivatives Beast been able to munch on much more than just $3 trillion of the $66 trillion in funny money deals created by the bankers seeking ways to lend like crazy despite risks.

Total Borrowings of Depository Institutions [TOTBORR]:

In all the previous years of our nation, we never, never, never saw this sort of insanity.  The 9/11/1 borrowing binge was billed as a one-time thing due to a direct attack on Wall Street that killed many of the workers there as well as halting trade for a number of days.

But that has been utterly dwarfed by the present rescue.  Was America attacked?  Did Wall Street shut down?  Has anything happened at all?  As far I am concerned, the charts agree with me that the trigger event was in July, 2007: the day the carry trade with Japan suddenly began to unwind.  This is a most singular event.  It is being deliberately ignored not due to stupidity.

The actors on stage who did this to us still run things.  They very definitely want the carry trade to resume.  The G7 central bankers all yelled that they wanted this!  It was in the news this week!  They were all blatantly obvious about this.  They hope to hide the mess again the old way: via lending this money to the West via Japan. Then, it doesn't show up in any charts!

Except it is very inflationary.

The 4 Horseman Have Arrived Debt, Derivatives, Deficits and the Dollar

By John Riley Chief Strategist  

Grim graphs!  The debt to GDP is now nearly double what it was in the Great Depression. And that was due to the GDP being very weak!  Our GDP has barely begun to decline.  But it is showing signs of decline.

On the other hand, when gasoline was selling above $5 a gallon, I saw nearly no one in the malls.  This week, thanks to inflation temporarily receding, I see packed stores again.  So we know that inflation is merely pulling back slightly before unleashing even worse effects: identical to the 1970's.  

We know that foreign powers sold or refused to buy US Treasuries.  It is not only irresponsible, it is treason for our government to be run in this fashion.  Our loss of sovereignty is tremendous.  Few people see this but it is obvious in trade statistics: the US sells Treasuries and debt in direct proportion to demands by our trade rivals to open our markets and allow them to destroy our own economy.  Ergo: it is treason.

Now, after all this grim news, we go to the Middle East again:

Gulf Citizens Beg for Bailout Amid Stock Rout: Week Ahead

(Bloomberg) -- Abdullah Hajeri led a march on the Emir's palace in Kuwait last week, demanding the oil-rich nation's ruler stop stocks from plunging. Adnan Mohammed Saleh, down the Persian Gulf coast in Dubai, said he wants more government protection from the global financial crisis. 

``Every day the market is crashing,'' said Saleh, a 42- year-old trader, staring dumbfounded last Tuesday as company names scrolled across the Dubai Stock Exchange's outdoor ticker in red. The region's rulers are under pressure from citizens to shore up investors, not just banks, as they try to fend off what may be the worst economic crisis since December 1998, when oil at $10.35 a barrel forced them to slash spending. 

Crude prices have fallen 50 percent from a record $147.27 in July, and stock indexes in Dubai and Saudi Arabia are down by as much this year. Gulf economies are more susceptible to financial turmoil than in the past because of their greater dependency on international expertise, investment and tourists to diversify away from oil. While Dubai, home to the world's tallest building and the man-made Palm Island, is considered most at risk, no part of the Persian Gulf will go untouched.

Residents of the region are used to government intervention. All Gulf countries are run by unelected rulers who maintain political power through tribal allegiances and marriages. Generous state welfare programs have traditionally damped demands for more political participation.

 How the region's rulers cope with the turmoil may define relations with their people in the future, as they try to wean their subjects off state handouts and encourage them to find jobs and embrace market capitalism. 

``There's no question that it sets back the move from socialist, paternalistic societies toward more modern capitalist states,'' said Gabriel Stein, a director at London's Lombard Street Research, which provides economic analysis to investors and companies. ``It is a trend that we have seen all over the world. The immediate reaction is that you told us to do this, so now things are going wrong it's up to you to help us out.''

Unlike Asia, the Middle East generally consumes rather than builds industries.  The only possible exception for this is in Turkey, Iraq, Iran and Palestine.  That is, when Palestinians are allowed to build anything at all.  This is due to historical cultural biases. But the proto-nomads of the desert view money as loot.  To be spent having fun.  Frankly, this is now our own ethos.  

Profits are windfalls, not via labor-added manufacturing systems.  Now on to the Jewish director in London: cutting back on 'socialism' in the oil pumping nations will lead directly to revolutions. For these are people who remember and know how to do something: fight.

Which takes me back to history: revolutions and wars are very intertwined with economic matters.  And banking can launch a thousand ships or inspire a million revolutionaries.  And there is one big revolutionary who just cannot wait for the kings and sheikhs to cut social services!

This is bin Laden's plans!  To have the biggest rulers of Muslims fall before the sword as outraged people swarm the palaces and behead them!  And the chances of this happening is around 50% right now.  Give people no money, no hope and no way out and they will be willing to die, fighting.  The Jewish freedom fighters in the Warsaw ghetto fought with all their hearts, contesting every inch the Nazis tried to gain.  Ditto, Stalingrad.

There are many historic battles of this sort.  This is why Chinese generals warn their fellow generals to always allow an 'out' so the opposing armies can retreat rather than stand and fight.  The western pundits advising the king of Saudi Arabia, a despot who got the throne via murder, that he should encourage his people to become 'capitalists' is pure insanity.  They will become DECAPITISTS.  Namely, 'guillotine experts'.  Or in their case, they use swords.

And guess how much oil these revolutionaries will sell Europe and the US afterwards?  And if you want to see hyper-inflation, if the price of oil hits over $500 a barrel due to revolutions and civil wars sweeping all our pets from power, we will see tremendous inflation.

Bloomberg:

Of the Gulf states, Dubai may be hardest hit by a global economic slowdown because it has borrowed more to finance its transformation from a Persian Gulf trading post to a financial and tourist hub, and has only 4 billion barrels of oil reserves. Government-controlled companies owe at least $47 billion, more than Dubai's gross domestic product, and they will continue to accumulate debt faster than the economy grows, Moody's Investors Service estimated in an Oct. 13 report. It concluded that Dubai may need financing help from Abu Dhabi.

Many bankers and others are running off to the Middle East to beg for investments.  Or running off to Asia.  But the price we pay is very high!  This is a boon that has many strings attached.  And these strings will strangle us.  And this is all due to the fact that we ceased being profitable.  We are not a capitalist society.

We are in a debtor's prison.

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Comments

[Buffalo Ken]

"We are in a debtor's prison."

Well if its a big enough prison to move around some....then, what ya gonna do, but make the best of it? If you have no freedom to even move, well then try to create some space for yourself if you can would be my recommendation. It helps to be kind to your immediate neighbors.

In most prisons, respect is only given to those who earn it. In the worst prisons, the only way to "earn respect" is to kick ass literally, but hopefully we can do better. Personally, I don't feel like I'm in a prison, but I suppose time will tell.

Peace,
Ken

P.S. I hope your fingers feel better rapidly. I busted the daylights out of my right big toe about two weeks ago, but once again "the body" has amazed me at how quickly it heals....but let me tell ya, during "the toe moment", the pain was real - after awhile my only defense was too laugh about it. Now the pain is almost gone.

[Buffalo Ken]

For the purposes of goofy disclosure, I've never been for a long-time stay in a prison (so maybe I don't really know, but I can imagine), and I'm sure not hoping that that ever happens - a prison stay.

Any country that imprisons those who propose new ideas is a country on the way down the tubes. Any country that even figuratively imprisons their own citizens is a country whose government is fixing to get a learning.

Peace,
Ken

[wuen]

The market is in chaos. By letting fiat money to exists, the measurement of demand and offer have been distorted by speculator. The current crisis exist because basic commodity do not follow the law of offer and demand. That why their have big swing in the price of these commodities. Real demand have been eclipse by speculator for these commodities. That why need to regulate the market to prevent unwanted demand base on speculation instead of real need. A market can have some speculation, but to much of it could kill any futur exchange. I hope in November 15, that the leader of the world will find a way to stop those people who use easy credit to speculate on basic commodities.

A good market is a market that provide a good measure of price on items base on real need and not speculation.

[Blunt Force Trauma]

Mr. Hopey Changey Unicorn Man promotes Civilian National Security Force

....or...More of the same, different guy.

http://survivalacres.com/wordpress/?p=1549

[Blunt Force Trauma]

More from John of Survival Acres on the upcoming (s)election on Tuesday.

No disclaimer. I agree with what he says in this. Fully.

On Tuesday November 4th, America and the World Lose, Again

http://survivalacres.com/wordpress/?p=1548

[DrKrbyLuv]

Elaine you make a good point in saying that profit not volume drive a capitalistic system. Volume can be a benefit in that cash flow can provide opportunities (economy of scale and investment opportunities) but under it all, if profits are not sought as the key, little else matters.

For example, profitable business owner(s) (shareholders) may elect to bank their own operation via loans to buy inventory or provide new services. Tax codes allow even closely held corporations to borrow from owners at a rate over prime.

According to the "Money Masters" video, by 1910, over 70% of all corporate loans were privately funded from profits. This was a huge concern for bankers as the trend was growing higher as a percentage - US businesses were becoming self financing!

Given a choice, bankers could never allow the prosperity of unfettered capitalism to be fully recognized. They had to add inflation and huge "business cycles" (bubbles) to wreak havoc. Simply put, they had to intervene in the markets to take back the control of debt.

To this end, fractional banking and a fiat currency were the chosen tools to enable ever more interventions and risks to the system.

Personally, I don't see anyway that true unfettered capitalism can exist unless we return to sound money (commodity backed) and eliminate fractional lending.

******************************

Elaine said "During the collapses, all hell literally breaks loose. And even though people assume ruling elites in Arabian lands or Merry England want chaos, this is FALSE."

Maybe we define the "ruling elites" different but I think there is ample proof that the rulers (NWO-illuminatti, trilaterals, bildebergs, et al) use chaos to offer their pre-planned "solutions."

For example, after they executed the 911 false flag operation, they used the resulting terror and fear to strip away many of our constitutional rights in the US. And air travel suddenly became more expensive and much more inconvenient - which hurt productivity.

The recent bail-out is another example, they created a huge financial calamity and rushed a bizarre solution down our throats. Does anyone really think this heinous bill would have passed scrutiny if the 400 plus pages were carefully read and reviewed?

The ruling elites are low life forms in my opinion as they detract from the greater march of man.

No offense meant to you, as while you may have some blue bloodline, I would hope that you would not equate your humble nature with the diabolical ruling elites.

[blues]

If for any reason, people have difficulty finding Elaine's blog during the site troubles, I will have the information posted on a special page on my blog " linguistics.name " (which is very easy to remember; there is a dubya-dubya-dubya before that).

The little special page is listed as "Location Of Culture Of Life" in the upper right hand corner.

[K]

Ken,

FWIW, I think the pensioners should own the company. Since my father is one of those pensioners I might be biased.

Elaine,
Did you see my post re:possible action on January 21? It's okay if you don't care to answer, just wanted to know if you saw it since the site is acting up.

[Buffalo Ken]

Hey K and blues - thanks. The "pensioners" deserve better. The workers can make better. The peasants are getting ready to kick some ass. I need some music now, so i think its time for me to go somewhere else for awhile.

Peace,
Ken

[igneous]

I read some where that many of the NeoConservatives are former Trotskyists. They have become more conservative moving form democrat to republican party but kept their international revolutionary zeal. Changing Trotskyist international socialist revolution thorugh warfare to democratic revolution through warfare.

[ziff house]

Elaine there is a flip side to Dollar hegemony, yes the exporting nations like this ,but the US figures they are like heroin addicts if they try to kick the habit they get sick. This is best expressed now , by the flock who think the dollar will rise! and in a spectacular fashion ,' because while the US is weak everyone else is weaker'.

[igneous]

I think religeon is in there somewhere as well.

[Buffalo Ken]

Hi wuen - I like what you have to say ----especially how simply you kept it all although whatever happens on 11/15 is just the momentary decisions of a few. When push comes to shove and some must defend love, then the People choose in a way that cannot be refused.

Peace,
Ken

[PLovering]

The Rothschilds control the USA FED, the Bank of England, and the Bank of Japan.

All these central banks are going broke.

Maybe Putin will bail us out.

[DrKrbyLuv]

wuen said - "By letting fiat money to exists, the measurement of demand and offer have been distorted by speculator. The current crisis exist because basic commodity do not follow the law of offer and demand. That why their have big swing in the price of these commodities. Real demand have been eclipse by speculator for these commodities."

Great point - exchanges are distorted by "fiat" speculation that damage the real markets. For example, many claim that the price of paper gold and paper gold futures have had a negative effect on the value of real gold.

I think it is vitally important that we move away from fiat currencies and move back to commodity (gold-silver?) backed currencies that have intrinsic value.

The sooner we do this the better. This would move our accumulated wealth to the protection of intrinsic value.

**********************************************

Blunt Force Trauma said: "No disclaimer. I agree with what he says in this. Fully. On Tuesday November 4th, America and the World Lose, Again"

Unfortunately, you are right on target with the coming two party sham. A third party candidate would clean their clocks if they were allowed to compete fairly.

You may remember that the "Woman's League of Voters" ran the debates - at least until Ross Perot almost won - "that great sucking sound is NAFTA taking our jobs."

After that, the Repubs and Dems took sole control of the debates - other candidates need not apply. As long as the people are content being screwed, there will be no real change.

My Prediction for the election on Tuesday:

If it's close, half the voters will be pissed because of election tally "irregularities" and no paper trail to investigate.

Unless one of the NWO puppets wins by a decisive margin - people are going to be very angry with the results - maybe riot angry

[Elaine Meinel Supkis]

You are quite correct, Dr. KrbyLuv: the GOP and DNC conspired to handover the debates to the biased media owners who incidentally, need to be bribed by the top candidates.

They also conspired to get rid my favorite old tool: equal time. If a politician said something and I had proof they were lying, I could demand equal time. And I got it! I wasn't the only one who did this.

So both parties killed it.

And yes, first there was Anderson, a fine, intelligent man I thought worthy of running for President, he made the regular parties sweat blood. Then Ross Perot drew real blood with my favorite things; charts and graphs!

And yes, he was correct about many, many things. Too bad, we can't see real races anymore.

[DeVaul]

Just watched the video of the SoCal Foreclosure Ally. I am just dumbfounded.

How could they throw away all that brand new stuff? Why not give it to charity? And who would leave family photos behind? That shocked me.

Can someone tell me what the neighbors were saying? There was no captioning. Are they in trouble also? Is their home now worth less becasue of all the empty houses around them? Are they planning on leaving also?

And what did the waste people say? Why did they not keep some of the stuff and give to charity or sell it?

I would appreciate anyone letting me know what the people in the video were saying.

Thanks,

DeVaul

[GK]

For disinformation to be useful, it must be 90% correct.

The 90% is so wonderful, I remain. But let me point out the obvious 10%.

Who's plan was it to drop the twin towers?
Bin Laden!

Who's plan was it to drop the global banking system?

Bin Laden!

I ROAR with laughter.

http://www.savethemales.ca/000447.html

"The real villains are at the heart of our economic and cultural life. They are the dynastic families who own the Bank of England, the US Federal Reserve and associated cartels. They also control the World Bank and IMF and most of the world's Intelligence agencies. Their identity is secret but Rothschild is certainly one of them. The Bank of England was "nationalized" in 1946 but the power to create money remained in the same hands.

England is in fact a financial oligarchy run by the "Crown" which refers to the "City of London" not the Queen. The City of London is run by the Bank of England, a private corporation. The square-mile-large City is a sovereign state located in the heart of greater London. As the "Vatican of the financial world," the City is not subject to British law. "

[Dutch]

That is true GK. It is a conspiracy. Sadly not many believe that, to their ruin. Not enough is mentioned of the "crown".

[blues]

Elaine, you are on the threshold of beating out rense.com!!! Mr. Taylor has a very bright future ahead as a smack-artist!!!

This is PREMO!!! The absolute best SMACK ART!!!

[Dutch]

http://www.bariumblues.com/bush_yakuza_connection.htm

[GK]

War on Terror used to 'Pull' a country's economy. Priceless.

See Bin Laden did it again!

http://www.nytimes.com/2008/11/02/world/europe/02iceland.html?bl&ex=1225774800&en=a2efb4da1593bd50&ei=5087%0A

"LONDON — No one disputes that Iceland’s economic troubles are largely the country’s own fault. But there may be more to the story, at least in the view of Iceland’s government, its citizens and even some outsiders. As grave as their situation already was, they say, Britain — their old friend, NATO ally and trading partner — made it immeasurably worse.

Icelanders have posted photos on a Web site protesting a decision by the British leader, Gordon Brown, to use antiterrorism laws to freeze the British assets of a failing Icelandic bank.

The troubles between the countries began three weeks ago when Britain took the extraordinary step of using its 2001 antiterrorism laws to freeze the British assets of a failing Icelandic bank. That appeared to brand Iceland a terrorist state. "

[Forgotten President]

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

[DrKrbyLuv]

blues -

Earlier you mentioned "sodium" energy. Here's a news broadcast of an inventor who has something that may be similar to what you mentioned. Oh, note that he also has a possible cure for cancer:

http://tinyurl.com/5azoem

[Richard]

Elaine, thanks for another great article. I'm praying for your fingers that they will heal quickly.

If you keep on with Typepad, then your past articles will be preserved, which would be a good thing.

As a Christian, I believe that God is Sovereign.

That's a word I have come to know and appreciate since reading your blog.

And because of the love of money, He is doing away with the rule of law, and is appointing the rule of men, who are desperately trying to preserve prosperity, financial liquidity and stability. Their efforts are doomed to fail.

If one counts using the Mayan calendar, modern man has been around for about 6,000 years: so its taken quite some time for money and prosperity to develop as it has.

Mankind's prosperity is debt based -- it has come through securitization, that is financialization of debt, such as CDOs, LDOs, and LBOs -- really toxic and highly leveraged junk.

The SEC has thrown out the fair value rule, and the accountants have withdrawn the mark-to-market standard of FASB 157, and replaced it with mark-to-fantasy assumptions of management: this resulted in a cardiac arrest in lending and a dramatic fall of stock value world wide. So trust in lending, and business transactions is out the window; the financial and lending markets that broke down 9-11-2008, cannot be started up again; capitalism is dead; and state corporatism is growing daily.

As you document Americans are enslaved to Wall Street's debt, as well as exposed to the Derivatives Beast it has created.

And I see all of this as the Way of God dealing with mankind.

God has a better plan than man and the rule of law, that being the rule of God. It's called the Peace and Prosperity of the Kingdom of Heaven as Allen Ross reveals; and it is coming soon, where Jesus Christ will be ruling and reigning for a 1,000 years from his Temple in Jerusalem as foretold by Ezekiel in Ezekiel 47-48.

I present lots of bible prophecy links in my referenced article for those interested in such.

You are greatly appreciated and a daily read.

[Elaine Meinel Supkis]

Your god's plans for man is to wipe us out a second time.

I don't like these plans. I don't like the god, either. Secondly, this god meddles in sexual affairs of humans, condemning things he does, himself. Like getting virgins pregnant secretly! Then he boasts about using the child thus produced as a human sacrifice?

Gads. No thanks, papa!

[Buffalo Ken]

I've spent some time at Richard's site and I appreciate the information shared there.

With respect to this whole "revelation" story - it just seems like someone else's story to me. You know - who needs that prophecy. Plus, I agree with you Elaine that some aspects of "that god's story" just seem wrong. I don't think dying can ever be life-affirming nor can there ever really be "learning" from dying - We all know that we will "die", but life is about living!

Peace,
Ken

[Buffalo Ken]

Furthermore, is it not patently obvious that "life & choice" go hand-n-hand. You can't have one without the other and vice versa. So this whole "argument" about "right-to-life" versus "right-to-choose" is a "non-starter" from the get go. To put forth one over the other is non-sensical. I'm so sick of this argument because I think now its become nothing but a bunch of "comfortable egos" arguing amongst themselves while ignoring the vast storm outside. Can we not discuss more important things that are REALLY going to make a difference in folks day-to-day lifes.

[Paul S]

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

Garfield was assassinated. Now I'm starting to wonder what William McKinley's views about the banks were.

[whine @ cheese]

Clearly, the Chinese are going to bail out the US at the G20. The question remains the CNY-USD peg.

It's pretty simple: both sides need to make a deal, and they will.

This crisis will end once china has given the US at least $400-500B USD in exchange for US "free trade" concessions.

It's like the opium wars in reverse. =)

[Paul S]

The picture at the top of this piece is good, but there REALLY should be a picture--IMHO-- of George W Bush in it as well. And let's not forget about Phil Gramm--or Tom Delay. Why DOES Texas produce so MANY sleazeballs? I say let's make Jack Abramoff an "honorary" Texan. It was "Dubaya" who took the states to court, when states like New York tried to rein in the banks "loans". Too bad the Bushes were successfull. The current situation is said to be a result of a lack of confidence. The banks don't trust each other. No honor amoong thieves I guess--HaHa. IMHO there won't be ANY confidence until some/all of the guys in the picture are in prison--long term and not a country club style prison.

[Elaine Meinel Supkis]

Everyone is quite right here. Yes, China and JAPAN will bail us out by lending more money to us. We don't need more lending.

We desperately need to save more. This is the awful trick being played by us. And yes, the artwork above does a good job of that. I am sad I couldn't do it on Halloween itself [had to clobber my hand that day...must be cursed!].

[blues]

Elaine,

Be careful with the fingers, okay? I once took of the tip of one, and it went on to get infected, and there came a point where they said "depending on the X-ray results, the finger may have to come off." I was on intravenous antibiotics for over a week. The thing with fingers and toes is, the circulation to them is limited. So watch out. Any unusual pain, or especially unexpected redness or purpleness, means you've got to go to the doctor fast!!!

DrKrbyLuv,

The TV station is totally misrepresenting what that guy is doing. Apparently he has simply found a way to use radio-wave energy to turn water into Brown's gas, which is a mixture of H2 and O2. It is highly unstable and explosive if contained. It appears to be more unstable than nitroglycerin. There is another patented "Powerball" technology, which as I understand it, involved sodium hydride (NaH) encased in plastic balls. It seems rather complicated to me.

All of this involves myriad technical challenges. Using sodium with water seems like the simplest and perhaps most workable method. Anything that involves salt water involves chlorine, which is very messy to deal with.

[Ed-M]

Richard, Elaine, Buffalo Ken and anyone else who wants to listen:

Did you know that the child-of-a-virgin was queer as well?

Just read through The Gospel of John with an open mind, it will become obvious to you!

And yet the Xtian fundamentalists STILL insist that their god hates fags (or at least what we do).

[GK]

The criminals who monopolized the US oil industry used that power to monopolize the US money creation engine.

Then they detached the currency from physical resource once they pumped all the easy oil from the US soil and sold our future and soul to the Saudis when we promised to protect them from their neighbors and peasants in exchange for monetizing our toilet-paper quality Federal Reserve Notes.

The South Western US has enough Solar Energy to fuel the country 100 times over.

No fancy technology needed. Just store the heated water for when you need it at night.

But instead they wasted trillions building stucco tract houses there to INCREASE demand for oil.

What a F****** waste of time dream of technological solutions when technology is the LEAST of our problems.

Focus on the criminal local and global predators.

One state at a time must persecute and deliver the legal penalty for TREASON.

http://en.wikipedia.org/wiki/Thermal_energy_storage

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[Nexpider]

A lot of useful information in those links, thanks. I feel that it might even be too much for me to “digest” in just one week.