Foreign Corporations In America Evade Taxes

August 14, 2008

Elaine Meinel Supkis

Today we look at two reports put out by the numbers crunchers working for our government. The GAO report was commissioned by the Democrats in the Senate. It investigates the scam whereby corporations avoid taxes. And discovered the astonishing news that foreign-owned entities are doing this at a far greater pace than domestic corporations! Then there is the quarterly Derivatives Beast Report put out by the Office of Currency Controls. It is, as usual, totally out of control and clearly shows that the Floating Currency Regime to be a total, unmitigated disaster.

TAX ADMINISTRATION
Comparison of the Reported Tax Liabilities of Foreign- and U.S.-Controlled Corporations, 1998-2005

GAO Report to Congressional Requesters, July 2008

FCDCs reported lower tax liabilities than USCCs by most measures shown in this report. A greater percentage of large FCDCs reported no tax liability in a given year from 1998 through 2005. For all corporations, a higher percentage of FCDCs reported no tax liabilities than USCCs through 2001 but differences after 2001 were not statistically significant. Most large FCDCs and USCCs that reported no tax liability in 2005 also reported that they had no current- year income. A smaller proportion of these corporations had losses from prior years and tax credits that eliminated any tax liability.

By another measure, large FCDCs were more likely to report no tax liability over multiple years than large USCCs. In 2005, comparisons of FCDCs and USCCs based on ratios of reported tax liabilities to gross receipts or total assets showed that FCDCs reported less tax than USCCs.

[Letter inside report explaining why the Senate requested this report]

July 24, 2008 --The Honorable Carl Levin
Chairman, Permanent Subcommittee on Investigations Committee on Homeland Security and Governmental Affairs

United States Senate, The Honorable Byron Dorgan United States Senate

In response to your long-standing concerns about whether foreign-controlled U.S. corporations are abusing transfer prices and avoiding U.S. income tax, we compared the tax liabilities of foreign- and U.S.-controlled companies incorporated in the U.S. in three prior reports.1 We reported that from 1989 through 2000 foreign-controlled corporations were more likely to report zero U.S. income tax liability than U.S.-controlled corporations with a majority of both types of corporations reporting no liability. We said that corporations may not report U.S income taxes for a variety of reasons including current-year operating losses, tax credits, and transfer pricing abuses.

Transfer prices are the prices related companies, such as a parent and subsidiary, charge on intercompany transactions. By manipulating transfer prices, multinational companies can shift income from higher to lower tax jurisdictions, reducing the companies’ overall tax liability. As we noted in our previous reports, researchers acknowledge that transfer pricing abuses may explain some of the differences in tax liabilities of foreign-controlled corporations compared to U.S.-controlled corporations. However, researchers have had difficulty determining the exact extent to which transfer pricing abuses explain the differences due to data limitations.

The US has run a huge trade deficit with trade rivals ever since Nixon cut the gold peg. Some people back then thought he was smart when he did this criminal action. Just as people think he was a genius because he ran off to Chairman Mao to beg for help, extracting the US from the Vietnam quagmire. The US has plenty of examples for what happens next when a country runs persistent trade and government spending deficits. We use these tools to take over the resources and industries of smaller nations. We often use the IMF as the pry bar to open up sovereign markets to US domination.

Both political parties in the US are semi-fascist yet leave out the 'socialism' part of the Nazi experiment in government control of internal markets. Whenever the US extends credit to third world nations with resources or markets we want to dominate, we always order them to cut social services and eliminate government services that run infrastructures, for example. This means the victims of lending by the US via the World Bank and the International Monetary Fund comes with steel strings attached. They must 'privatize' by selling off their highways, ports, transportation systems, water systems, oil fields, etc. This meant selling these things to the US ruling elites and their comrades.

One would imagine the US government would see clearly where we are headed. Indeed, since the methodology of loss of sovereignty and the take down of a nation's resources and systems has been written by the US government, itself, one has to speculate, are they traitors? The people bringing this catastrophe upon us can't be doing this due to inattention, blindness, lack of understanding. Since they are mostly extremely smart, one has to conclude, they are in collusion with international financiers. They are doing this to get a slice of the action, a piece of the pie. Which is treason.

The Republican party was totally hijacked by traitors long ago. Ronald Reagan, for example, couldn't wait even one week after leaving office to go off to Japan to collect his own bribes. The Japanese paid him a cool $2.5 million for exactly one speech. At the time, it was the most expensive speech on earth. And worth every penny to the Japanese, I may add. The Chinese purchased the Bush clan. The US media seldom looks into the Bush entanglements inside of China or Saudi Arabia, for that matter. Since the entire US media supports the destruction of US sovereignty, they don't think this is very important information.

This is because much of our media is owned by foreigners or is run by people who swear allegiance to Israel. The last thing they want is to raise the alarm about how our trade and government debt is driving us into a situation similar to what many second and third world nations suffered under similar circumstances. Support for free trade is nearly universal in our media. Israel, for example, has a very significant trade surplus with the US while collecting the lion's share of US foreign aid. To keep this status quo, the media has to misdirect the public. This is why they allow hysterical articles accusing China of running a trade deficit but never mention all the other places doing the same thing. Per capita, the trade surplus Israel enjoys today is far, far greater than China's surplus. Both surpluses are intolerable.

We see with privatization and the sale of our industries to foreign powers how the US is losing citizen control of all systems from top to bottom. When government-run systems are auctioned off, foreigners usually are the buyers. This destruction of our sovereignty has been disguised as 'cost cutting' schemes that will 'save the taxpayer money.' Note that the more we 'privatize', the more our government runs in the red! Congress is responsible, in the end, for government spending according to the Constitution. The Constitution didn't have some sort of check on Congress refusing to fund spending.

The graphs in the Senate GAO report make it very clear that both US and foreign-owned corporations work hard at evading taxes which fund our government. And the foreign-dominated sector not only is growing very rapidly, it is also evading taxes even more than domestic-owned corporations! This is INTOLERABLE. But has been encouraged by traitors here in America. Just as American politicians rush to give Toyota huge tax breaks and advantages so the Japanese will open factories here, we see everyone in our system running over to assist foreign domination of our industries. All this activity has led to foreigners making huge profits here while contributing nearly nothing for running our government which, as it goes deeper in the red, offers foreigners more and more tax breaks to come here and dominate us even more.

Click on all images to enlarge; all red bars are Foreign Controlled Domestic Corporations and the blue bars are US Controlled Corporations:

This graph shows very clearly where the foreign powers are concentrating their take over of US systems: manufacturing, wholesale trade and financial services. US owners still get to dominate the mall business and 'other' which is probably running water, port and energy systems, I am guessing. Even those 'others' are being increasingly bought out by foreign entities. The horrifying part is the first bars at the top: manufacturing.

This graph ends in 2005. Today, it is twice as bad! Three more years of selling US systems to foreigners has taken a massive toll on our sovereign powers. I notice when googling yesterday's stories about this report, most said, 'Two out of three US corporations didn't pay taxes.' Rather than mention the fact that foreign owned corporates paid significantly less US taxes than even US owned corporations.

This graph makes it very clear: 45% of large US corporations like GM or Boeing paid taxes. But less than 30% of Toyota, etc. paid taxes! THREE QUARTERS of the foreigners paid no taxes! Slightly more than half of the US corporations paid no taxes in 2005. And we wonder why our government is so deep in the red?

And this last graph from the Senate GAO report is ugly indeed: the PROFITS foreign powers made are one and a half times as big as the US-owned profits! They are making money hand over fist here and then not forking over taxes! Amazing! And is Congress motivated to stop this? Is this top headlines in the US media? Is this very simple business being explained in very simple ways to the US public?

Obviously, perish the thought. Now on to my very favorite report: the Office of Currency Controls publishes this report four times a year. It is very easy to see the Dire Derivatives Beast in this report. And everyone snoozes at the controls. For NO ONE IN OUR GOVERNMENT IS CONTROLLING OUR CURRENCY ANYMORE. According to the Constitution, Congress is supposed to be in control of our currency! This is why I call it 'treason' when they let the dollar slip its leash and run away to Asia, Europe and other far corners of the planet.

OCC’s Quarterly Report on Bank Trading and Derivatives Activities
First Quarter 2008

Derivatives activity in the U.S. banking system is dominated by a small group of large financial institutions. Five large commercial banks represent 97% of the total industry notional amount, 93% of total trading revenues, and 85% of industry net current credit exposure.

Credit market turmoil continues to weigh heavily on bank trading revenues. Banks reported trading revenues of $1.13 billion in the first quarter, rebounding from a $9.97 billion trading loss – the first ever for the banking system – in the fourth quarter. Despite the improvement, revenues in the first quarter are sharply lower than in recent first quarters (a record $7.0 billion in 2007 and $5.7 billion in 2006), as banks continued to incur write downs on CDO exposures related to subprime mortgages and faced a challenging trading environment in credit markets.

Trading performance in interest rate and foreign exchange contracts was strong, each exceeding the same quarter of last year and their 8 quarter averages. Interest rate revenues were $2.8 billion, the third-highest quarter ever, compared to a loss of $357 million in the fourth quarter and an 8 quarter average of $1.8 billion. Foreign exchange revenues increased $210 million to $2.1 billion, a solid showing when compared to an 8 quarter average of $1.8 billion.

Trading results for credit-related instruments continued to depress overall trading performance, although losses declined sharply during the quarter. Banks incurred credit trading losses of $3.9 billion in the first quarter, compared to a loss of $11.8 billion in the fourth quarter. In addition to further CDO writedowns, banks also took losses related to auction rate securities and leveraged loans. Commodity revenues increased $81 million to $170 million, while equity revenues declined $221 million to a loss of $15 million.

If I was publishing this report, I would have skull and crossbones all over the report! I would have very strong language decrying the very existence of this messy monster! I would note how all the graphs but one show the dread 'hockey stick' characteristics which show the presence of a bubble. All bubbles are bad! Bad! Not good at all! Very naughty and bad! Any system showing this is in trouble. Whether it be the water temperature in a nuclear power plant, the growth rate of a population of anything, the growth rate of lending, the trade deficit, whatever: it is bad.

Before Nixon cut the gold/dollar peg, we had no real 'currency markets' where people could place bets about future interest rates. The market for interest rate contracts is gigantic today. Credit derivatives is a little less than 10% of the Derivatives Beast. Look at what happened to it! Negative four billion. Total trade profits from these floating currency elements was still positive...barely. The two thing upholding this are FOREIGN. Foreign interest rate contract [hello, Japan kitty!] and foreign exchange [want a euro, anyone?].

A classic bubble graph. The end-user notionals flat. Dealer notionals shooting upwards. The end users have not grown. But the deals have! Again, just by glancing at this, we see nothing but terrible trouble in the future. How can the dealers be making many more deals each year if the base is stubbornly the same? This means the system is faulty in some way. Not the two tiny falls in this graph: in 2001 and last summer! HAHAHA. A bad recession and the present banking collapse barely jiggered this upwards-climbing system! Again, a sign that this whole business is detached from a sound financial basis. This tracks more, the US trade and tax deficits. Which are very much encouraged by our trade rivals. Who are establishing a giant beachhead in the US and are devouring our tax base at home as well as taking over our industries and financial systems!

Lord, it gets worse and worse! This shows that despite a bad fall in economic activity, the near-total collapse of banking in the West, the collapse of Bears Stearns, etc, not only has this not reduced the size of the Derivatives Beast: its growth continues skywards. Just slightly slower than in 2007. Look at the numbers! Rapidly closing in on $200 TRILLION? Good grief. This looks more like Zimbabwe's currency crisis than the world's top 7 economies' banking systems!

And much of this bizarre and nasty critter is all about interest rates! Not commodities or equities. Interest rates! And despite the banking system of the West collapsing this last year, the derivative contracts continued to grow. Interest rates have been grossly destabilized by US and Japanese attempts at ignoring inflation in order to flood the world with more dollar debts. So we don't have a 'shrinkage' going on here, things are still growing even as money is vanishing rapidly in the weaker sectors of equities and commodities. For the commodity markets are now shrinking rapidly.

JP Morgan's risks were worse in 2003. Running at over 500%. They reduced it to a mere 400%. HSBC's risk exposure is an even more astonishing 720%. Amazing. To the moon! The worse thing here is, this exposure grew and grew the last 5 years from 200%. Most of the other giant international banking entities tried to control this a tad. But not HSBC.

Quarterly trading revenues collapsed, didn't they? The huge losses in the credit markets is probably why the graph of percentage risks has shot up at HSBC, for example?

$42 trillion in foreign exchange and interest rate contracts for this year? Wow. The growth in 2006 and 2007 was astronomical. It was much slower this year. But in a year when the same banking systems had a near total collapse, the fact that this is still growing is significant. It means we have a still out of control dynamic here. Even with the destruction of much of our systems, we see virtually no pause in the growth of this messy market system.

This multi-trillion graph is interesting. The super-sudden surge in commodity and equity contracts in 2005 is strange. Less than one year contracts have grown greatly in the last three years. I really don't know quite what to make of all this. It is peculiar since all the other graphs show things growing and growing like weeds. This sudden spike is a dangerous thing. And what a spike! In the equity 1-5 years grew from $750 billions in 2004 to $1.4 trillion the next year. In other words, it doubled in one year? How bizarre. The following year, it shrank to $200 billion! Wow. Talk about a bump in the road.

The vast majority of contracts are in the 1-5 year range. Note how this still is growing but the greater than 5 year is not growing. I sense some uncertainty here. Do they expect hyperinflation to show up again, even more powerful than the last spurt, in five years? History tells us this is what will happen. I suspect most of the contracts are for less than 5 years. It would be interesting to see the numbers.

Now, on to today's news:

Greenspan Tells WSJ Fannie, Freddie Deserved Breakup

(Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan disagreed with the government's rescue of Fannie Mae and Freddie Mac, saying they should have been nationalized and split up into smaller companies, the Wall Street Journal reported.

``They should have wiped out the shareholders, nationalized the institutions with legislation that they are to be reconstituted,'' Greenspan said in an interview this week, the newspaper said. He made similar comments last month.

Greenspan's view reflects criticism from free-market proponents of the plan forged by Treasury Secretary Henry Paulson, who engineered a financial backstop for the companies in their current form. The two government-sponsored, shareholder- owned firms account for almost half of the $12 trillion U.S. mortgage market.

Goodie gum drops! To take us back to the first report about the US selling out all systems to foreigners, note how Greenspan and his gang want to nationalize BAD DEBTS! Since on one wants our housing, not even Americans, the idea is to shove this onto our dying government systems. So we privatize all important transportation, ports, water, war making systems. And nationalize our lending system and make it Uncle Sam's headache? Collecting house payments is our government's function? But not running our ports, highways, rail and airports? HAHAHA. Typical IMF/WB sort of solution. Greenspan and Bernanke spoke at the last secret Bilderberger meeting. Our international financiers desperately want to dump our housing mess into our government's lap.

The government, on the other hand, dare not do what Greenspan suggests: stiff the holders of Fannie Mae and Freddie Mac bonds. These are retirement funds, Japan, China and other interested parties. We stiff them, they slit our throats. Why did Freddie Mac and Fannie Mae grow?

The government let them grow by having them vacuum up trillions is silly loans handed out like candy by bankers who didn't want to hold these loans. So now, we have our government hold what the bankers didn't want. What next? Make Uncle Sam hold all the interest rate swap derivatives too?

YOU BET! This is the plan. To dump all the lousy investments and systems into the taxpayer's lap while foreign powers merrily skip past paying taxes on profits they make in America.

Here is another traitor:

``I believe the firms should be nationalized,'' former St. Louis Fed President William Poole said in an interview with Bloomberg Television this month, echoing Greenspan's view.

See? This is what happens when smart men refuse to think things through. Or rather, are more interested in protecting fellow ruling elites rather than America. This is why I say, it is treason. The average American thinks that if these mega-mortgage holding entities are 'saved' all is well. But this is false. What it means is, lending will continue even as it is painfully obvious that Americans can't pay their debts DUE TO DROPPING WAGES, unemployment and excessive debts. And making all this worse won't fix things. If the Federal Government is the Lender Of Last Resort, this is a fascistic form of nationalist socialism. In other words, PEONAGE. Like, 'How to become a serf in 10 easy steps.' Intolerable!

Bank Shares Decline as Merrill Says Crisis Isn't Over

(Bloomberg) -- Financial stocks fell, led by Bank of America Corp. and Morgan Stanley, after Merrill Lynch & Co. downgraded the shares of its biggest competitors and said the credit crisis is ``far from over.''

Bank of America, the largest U.S. bank by market value, dropped 7.3 percent and Morgan Stanley, the No. 2 securities firm, declined 5.5 percent in composite trading on the New York Stock Exchange.

Merrill Chief Investment Strategist Richard Bernstein said investors are ``significantly underestimating'' the extent of the credit crisis. Guy Moszkowski, Merrill's top-rated analyst for securities firms, downgraded Morgan Stanley, Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc., his firm's three biggest U.S. rivals, as well as Citigroup Inc., the largest U.S. bank.

``Conditions have deteriorated significantly from July,'' Moszkowski wrote in a note today. ``The typical summer slowdown has been exacerbated by renewed fear over credit, the direction of the economy, and home-price depreciation, along with the sudden about-face in the oil price and hedge-fund losses.''

+

Even as the Derivatives Beast grows and grows, the banking crisis also grows worse and worse. They are connected. Normally, when banking goes into a tailspin, all the systems feeding it or controlling it go into a tailspin, too. But not this time around! Obviously, the Derivatives Beast is surging forwards in a contracting system! Alerts must sound! This it intolerable and impossible. It cannot be. Therefore, it is a creature of the world of opposites. It is a destroyer waiting to crash the entire system, utterly.

Banks' Subprime Losses Top $500 Billion on Writedowns

(Bloomberg) -- Banks' losses from the U.S. subprime crisis and the ensuing credit crunch crossed the $500 billion mark as writedowns spread to more asset types.

The writedowns and credit losses at more than 100 of the world's biggest banks and securities firms rose after UBS AG reported second-quarter earnings today, which included $6 billion of charges on subprime-related assets.

The International Monetary Fund in an April report estimated banks' losses at $510 billion, about half its forecast of $1 trillion for all companies. Predictions have crept up since then, with New York University economist Nouriel Roubini predicting losses to reach $2 trillion.

Half a trillion in losses? Did this crimp any of the statistics of the Derivative Beast's growth? Well, yes, it didn't grow twice as fast as before. But it grew. In the teeth of massive losses. Someone is losing. How can they all be betting on things and growing these bets while losing money? Or is the gambling house lending them money? HAHAHA. YES! The system runs thanks to the various TAF, TALF, etc windows. Opened by the pro-nationalization of the lending system's operators at the Federal Reserve. Which is NOT nationalized at all. It is run by private bankers for their own ends.

U.S. Foreclosures Increase 55%, Bank Seizures Rise to Record

(Bloomberg) -- Bank repossessions almost tripled in July and U.S. foreclosure filings increased 55 percent from a year earlier as falling prices cut homeowner equity, accelerating the housing decline, RealtyTrac Inc. said.

Bank seizures rose 184 percent, the most since reporting began in January 2005, the Irvine, California-based seller of foreclosure data said today in a statement. More than 272,000 properties, or one in 464 U.S. households, got a default notice, was warned of a pending auction or were foreclosed on. Nevada, California and Florida had the highest rates.

``It's getting worse,'' Rick Sharga, RealtyTrac's executive vice president for marketing, said in an interview. ``The number of properties that have been foreclosed on by the banks and still haven't sold is the highest we've ever seen.''

No sane observer expected the housing market to recover. It cannot. NO housing collapse ever recovers within one year of it falling apart. I have lived through several episodes of bad housing sales. All last for at least 3 years! The full recovery of profits takes 5 years. This epic collapse will take more than 5 years. If we nationalize housing debts, we will not see happiness. We will see the government unable to lend due to it being bankrupt. Isn't that sweet? A Greenspan solution to a problem caused by Greenspan's interest rate manipulations.

Then we get to be like Japan: low interest rates, low wages, low consumer spending and a collapse in social services. The Japanese exporters want us rich so they can sell to us. But they don't really care in the end if we live miserable lives. And China plans for this to happen to us. They can't wait.

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Comments

[Reimund from Berlin]

Hello Elaine,

I think that foreign companies are avoiding to pay taxes everywhere, not only in America.

[G]

Gangsters dont pay taxes.

[Elaine Meinel Supkis]

Absolutely correct! Ganz sichtig!

[klintock]

Gangsters don't pay taxes, people pay taxes to gangsters.

This is why we shouldn't have any taxes at all.

[G.]

The Chinese "discovered" America in 1416
its now being realized. New records being
uncovered of huge fleets commissioned to sail around the world. Stone anchors of Chinese style found off W.Coast US along
with Chinese pottery that cant be explained
by Spanish trade.Records of ships sailing into a well hidden harbor(SFO)with huge red
trees in the backgroud.(Oakland was once
the site of a huge redwood grove)

If China didnt have a nasty civil war right
after these fleets came home, they would've
colonized this place ahead of the Euros. After their civil war, the new emperor ordered the fleets burned to prevent any
possible competition to his power and China
retreated back into itself

They are now "discovering" America again.

[BuckarooBanzai]

Exactly right, Klintock. The founding fathers made all taxes except for excise taxes illegal for a very good reason: it permitted law-abiding citizens to legally and ethically avoid taxes simply by avoiding the purchase of the taxed items.

The system we have now lends itself to corruption because it allows special interest groups to influence legislation that permits their group to avoid taxes selectively.

If we were an ethical and well-organized society, taxation would be restricted to excise taxes only, and there there would be excise taxes on only one class of goods: energy. Energy is the source of all wealth and thus is the most efficient good to tax. The obvious knock-on benefit would be to make energy use much more efficient.

Unfortunately, we live in neither a well-organized nor ethical society. Pity.

[JZ]

I just don't see the Japan model working out well for the ruling elites here.

I do agree that most Americans have been pacifistic, but the inner cities here are powder kegs waiting to go off.

Japan has had a society of samurai elites and peasants and is fairly homogeneous.

[blues]

Twenty years ago I "invented" this method of taxation that I would run past annoying people at bars, libertarians, etc. Works like this. Only one kind of tax — the Black Ball tax. every year they run a lottery, and some small fraction of the population gets the Black Ball.

If you get hit with the Black Ball, they clean you out totally. You go to a "meeting" where they simply confiscate everything you've got, and you come out naked! This horrified my rich friends. They really went ballistic over it.

[Ruffcut]

Elaine,
Your commentary is the most comprehensive on the net.
I truly appreciate you devotion and hard work to the this blog.
The problem is, when in a small group, and the econ dicussion comes up, then half on my observations (Not complete opinions) a quarter of your postings, the parties look at me like I'm a moonbat.
The destruction, is no longer predicted, which you were not reading tea leaves, but the truth that most people don't see, and most don't want to see.
It makes me sad, but I love you candid pictue , with the truth.
Problem is, that America will not be able to handle the truth.
THey will blame it on those, like Obomba,and confuse the issue with more lies and dispair.
I often tell people, that in two years, there not has been any improvements, bottoms and rays of hope.
As she sings:
"it has only just begun......

TOOO SUUUCCCKKKK!!!!"

[G.]

Hey Ruffcut....

Not to worry about all the econ. particulars..It took me quite a
while just to begin to understand this carry trade shit and all
the other scams going on. In a way its complicated but on anotherlevel its not.

Basically all these financial machinations, CDO's,SIV's,Hedge funds,derivatives, etc etc are just what happens when the
rich get too rich for their own good whilst the rest of us
have declining incomes. The rich, along with the upper middle
class to some extent, basically start masturbating their money
with gimmicks like the above instead of truly investing it
for the long haul----research, infrastructure. All their money
starts chasing other money instead of productive investments.
And the rest of us are encouraged to blow our meager incomes
at Beast Buy or the local reservation casino.

Sam Spade was right though. "When in doubt, follow the
money trail"

Elaine needs a break and should get an editor to work with
and get a book out there. At least for purposes of having
an honest historical record out there to explain the decline
and fall of the Trojan, er American empire.

[Elaine Meinel Supkis]

All systems are schemes. Schemes set up to access 'infinity'. Infinity means eternal wealth. The destruction of this wealth is via impersonal 'gods' and 'goddesses.' I use them as icons for the natural forces that are the 'wealth destroyers'.

No matter what tricks people cook up, once they open the portals to 'eternal wealth' they trigger 'instant death'. They will not believe this. They really think they found El Dorado and not yet another chamber of the Cave of Death.

When one looks at economic news this way, it becomes crystal clear, what will happen next.

The Derivatives beast, as I noted, continues to grow! Even as appendages of it has greatly declined, over all, it continues its amazing and massive growth. It can't grow forever. The closer to infinity it grows, the more likely it will be destroyed in a terrible flash.

This is why I have to apply some psychology to all this: the OCC has tracked this creature for several years and writes reams of reports about how it was created and nurtured. Yet these reports ignore the dangers of this thing! Since it is obviously zipping along to infinity, the OCC should stop it, now. not later.

The longer they wait, the more likely this will destroy America. And yes, Ruffcut, if you casually mention my writings, people think you are nuts. Talk about the Goddess of Inflation flying faster than thought and they will think you are flying off the handle, yourself. Talk about gnomes and people think you are one of the Seven Dwarves. By the way, the Seven Dwarves were very magical creatures. They were astronomical in nature and operated in the Cave of Wealth and Death. Think about the story for a minute and it becomes clear.

[OC]

Elaine,

Any ideas on what is used as collateral for the Yen Carry Trade?

U can't borrow money without something as collateral or can u??

By the way, Yen is shooting up against all other currencies again.

[blues]

It has occurred to me. Elaine, you have a book here. More than a book, really.

Of course, then you have to visit 10,000 frumpy book stores and peddle your tush off. Well, as long as some fools pick up the tab, it could be somewhat interesting. If I can help, you know where I am. Always ready for the next game, I am.

[Elaine Meinel Supkis]

I like frumpy bookstores, Blues:)

[GK]

Alas Blues, the central banking scam is one of the most lucrative crime syndicates in the world and people have been fighting it directly and with information in books for HUNDREDS of years.

Governments, TV, Newspapers, Corporations all over the world are involved. Anyone who attempts to puncture the veil of ignorance is immediately ignored (like when we discuss online), discredited (when someone gets on tv and attempts to discuss), attacked (non-aligned banking system like Iraq or Iran) or executed (when in high enough office like Lincoln/Kennedy).

You could publish explanation as to what is happening to you are blue (blues?) in the face and if what you say comes true they simply pull some levers and create another broadly disseminated message that the masses believe because it is chanted (repeated) continually on all the information sources.

Think about it: how do you form your opinion of reality? You make observations of reality and then discuss with other people to see if you are crazy.

Let say you observe rebate checks coming in the mail. You have to decide what this means. Do you watch TV and they say 'Yah, the government is helping us!' and then when you discuss this with your friends and ask what they think, they say 'Yah, the government is helping us!' because they do not have the intellectual tools to analyze it.

If you say something else like 'we are heading towards Weimar hyper-inflation, you are looked at funny because they do not understand what that is and then you are socially rejected which is THE MOST TERRIFYING thing for a social creature, like us humans.

So think about how impenetrable the layers are Neighbor, News Media, Government. They are all 100% compromised and all have severe penalties (losing friends, job, life) in place for disrupting the mass belief.

You cannot change your friends or family's mind, you cannot change the media, and you cannot change the government.

It is 100% fascist global banking dictatorship and it is 100% global.

People are terrified of nature and being alone and so seek the protection of a king, feudal leader or dictator or collectivist government and their descent into slavery is guaranteed.

When someone steals $250 million shorting Bear sterns the days before it had it carcass handed to JPM, it does no good to get angry about it because no one is going to investigate it and you cannot change that. Call your newspaper? Call your 'elected' 'representative'? HAHAHA!

Science is the most incredibly powerful invention of human beings. But like one of it most incredible fruits, nuclear energy, it can be used for good or evil.

Unlimited free energy for people, or unlimited threat of global thermonuclear war to drive them to the protection of the government.

So we have are in is a scientific dictatorship. You can think of facebook as a happy place to checkout your friends or you can realize that it is DARPA funded project to get people to build their own Dossier like the SS used to have to do manually on their own.

You can enjoy the pretty colors on your GPS enabled iPhone or you can realize that it is a constant human tracking device to feed into NSA fully spectrum simulation systems.

You can choose to join the first level of defense of the status quo and post on discussion board 'no one would ever do anything that evil, you ignorant slut' or you can gather knowledge in the chance that there is a 1 in a million possibility that there is some true freedom rather then Freedom-TM-BROUGHT TO YOU BY BOEING-GE-HALLIBURTON-ETC.

[Buffalo Ken]

GK - so sad but based on what I have learned it seems so accurate. I suppose in the time span of a typical human life, the power of "central banking" can seem immense and insurmountable. It certainly has been around for hundreds of years and certainly does seem to "rule".

Nonetheless, there are some forces that are orders of magnitude more potent than any "central banking" scheme or system --- For example, a massive earthquake in overbuilt and under-prepared locations. Or perhaps, a sudden change in ocean currents. Or an exponential increase in oxygen free "dead zones". Or species becoming extinct more and more rapidly. Or maybe a sudden irreversible release of methane gas that had been frozen in the tundra or deep in the ocean. Or some newfangled "synthetic" biologically active entity being foolishly created and then unwittingly released. Or perhaps CO2 levels rising at an unprecendented rate (wait a bunch of this is already happening isn't it? and the "home sapien" species is directly responsible isn't it?).

By the way has anyone seen the price of silver lately (like tonight in Hong Kong?). It is going crazy.

There is so much instability because too many systems have been pushed to the edge without any thoughtful consideration of the subsequent ramifications. Eventually (next year, next decade, or maybe next century) if "nothing changes" one of these "systems" that has been in place for 1000's (or more) human generations and that doesn't give a rats ass about central banking is going to go "quantum" on our butts and then who knows what will happen.....I think it will be for the best, but of course, that is just speculation....

Hm - its crazy to be thinking long term like this isn't? Nobody does that anymore do they? Oh well.

[blues]

I will fight. Win or not, I will fight. 'Tis in my blood. Who cares who wins? I will fight. They will pay some price. They have deeper pockets than I. They will have to dig pretty deep. Not I. I will fight. And they Will suffer.

They are about to lose bigtime anyway. 'Cause they are dirt-stupid!

[Elaine Meinel Supkis]

All very good comments! And true!

Yes, I can sound utterly insane. Especially when talking about the true core nature of money. Power is granted not just by humans but it is a gift from the gods, a jealous gift that is pure poison.

The German word for poison is 'gift'.

All the markets are haywire right now because the goddess Libra is frantically trying to set the scales right again and we hate this. The entire planet hates this. The whole human system on every level is set to go to infinity, to destroy itself trying to ignore the balance of nature, the balance of the books, the balance of global population systems, everything is out of balance. And we like this. Very much.

This is why we won't change unless at 'gunpoint.' And trust me on this, Mother Nature packs a lot of fire power. She can crush this entire planet between her two fingers by say, blowing up the sun. Just for one grim possible example.

While She permits us to live, we should in turn, respect Her and Libra. Libra, unlike red in tooth and claw Mother Nature, actually wants to protect and preserve us. Which is why we should listen to Her.

[Peter]

All I can add to these thoughtful posts and comments is a recommendation to watch Koyaanisqatsi, if you haven't seen it yet.

[G.]

Another similar movie is the "Last Wave" by Peter Weir
an Australian director. Its NOT a surfing movie BTW .

Its one of the most erie forboding strange movies I've ever seen

[manolo blahnik]

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