Archive for July 2011
from The Daily Bell
Posted July 28, 2011
Debt-limit debate wearing on Americans … As an Aug. 2 deadline draws closer and Washington’s political brinkmanship only intensifies, Americans are discussing the potential consequences of failing to raise the debt ceiling, which authorizes the federal government’s borrowing to meet expenses that tax collections aren’t sufficient to cover. … The president and the Republican speaker of the House, John Boehner of Ohio, both have appealed to the public and accused the other side of refusing to come to a deal. – USA Today
Dominant Social Theme:
We must all pull together to get through this. Let the wise men lead.
The debate over the debt ceiling is anything but trivial for the powers-that-be. Political pundits on both sides of the dialectic, along with their media confidants, would like us to believe that there is a real reason for us all to be concerned over the “acceptable level” of debt. Don’t worry about the fact that America is already the largest debtor nation in the world. Don’t worry that the Fed handed out more than $16 TRILLION in bailouts … just a couple of trillion more and all will be well.
Well, we have another take on the matter. It seems to us that to debate whether or not further “credit” should be extended is to miss the point. The real point is the fraudulent base on which the Federal Reserve System is built – in other words, the US dollar itself – and how it is eroding living standards and individual freedom.
We wrote about this just the other day in an article titled, GAO: Fed Issued $US16 Trillion During 2008 Crisis!
For nearly 100 years now, the money elite have had their way with the American people and citizens of most other nations who’ve been harnessed in the dollar noose due to its oil-imposed reserve status. And as central banks (creators) and commercial banks (distributors) were hoisted upon unknowing populations – dumbed down via a broad, yet tightly controlled international media network – the process of wealth redistribution was firmly entrenched.
Nowhere has this poisonous system been more effective at draining the lifeblood (productivity) from a nation, than in the United States. The US Constitution has been turned into an artifact of ridicule; the rights of an individual have taken a backseat to the “rights” of the State. And what a State it is.
We all now face a global catastrophe, we are told, if the US legislators cannot agree on the need to raise the debt ceiling. We are told that the world will stop turning and all will face a horrible new future.
On Monday night, during his Presidential address to the nation, Barack Obama warned, “We can’t allow the American people to become collateral damage to Washington’s political warfare.”
Really Mr. Obama? And just how rosy is the current picture for most who are willing to face reality? Are Americans not already collateral damage?
Today, in America and the West in general, it is virtually impossible for people to get by without both spouses working – often more than one job each. The family unit has been sabotaged and instead of communal bonds bringing families closer together we have a dog-eat-dog society where even close family members are stepping over each other to survive. All the while, people are working HALF their lives to pay money into a system based on a fraudulent premise: That someone out there can do a better job of taking care of you, than you. And naturally, Mr. Obama believes he, and the system of regulatory democracy he leads, can do that.
So why do people sit back and watch this “accident in motion” rather than just realize that the whole gig is up and it is time to face the music? Everyone is complicit in this – the people themselves who blindly gave up their individuality for false security, and the subversive group of monetary elite focused on consolidating their globalist agenda and generaly enslaving the “lower order.” Of course, the former group has been losing for a long time now, but perhaps it is now the latter group who will face some rather uncomfortable times ahead.
However, as long as the greater majority refuses to have the courage to take responsibility for their own destinies, then there will continue to be those who will use fear-based dominant social themes to consolidate power.
To extend further debt to a disfuntionally bankrupt system will do nothing more than delay the inevitable. It will not fix the unfixable. People are waking up, thanks to the Internet Reformation, and taking human action – one person at a time. This is the bell of liberty that is tolling and it is ringing louder and louder as more and more choose to face reality.
Just look at the powerful increase in purchasing power (value) of gold and silver over the past several years to get a pretty good idea as to how rapidly the fiat money scam is unwinding. And this trend is NOT likely to change anytime soon. How can it? Why would it? We still have the majority of people debating in what “form” the debt ceiling package should exist. The majority, well, they just don’t get the point – at least not yet. So the struggle will continue, the debt ceiling will go up, and the dying dollar will continue to devalue.
The Internet Reformation is leading all who wish to see the truth. And for them, the debt ceiling debate means rather little and neither do Obama’s fear-based threats. As Dr. Machan says in his editorial today, Americans just need to say NO.
“You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.” – Andrew Jackson
by Jeff Clark, Big Gold
Posted July 15, 2011
IN SPITE OF CONSTANT HEADLINES ABOUT DEBTS AND DEFICITS, most Americans don’t really believe the U.S. dollar will collapse. From knowledgeable investors who study the markets to those seemingly too busy to worry about such things, most dismiss the idea of the dollar actually going to zero.
History has a message for us: No fiat currency has lasted forever. Eventually, they all fail.
BMG BullionBars recently published a poster featuring pictures of numerous currencies that have gone bust. Some got there quickly, while others took a century or more. Regardless of how long it took, though, the seductive temptations allowed under a fiat monetary system eventually caught up with these governments, and their currencies went poof!
As you scroll through the 23 banknotes (fiat currencies) below, you’ll see some long-ago casualties. What’s shocking, though, is how many have occurred in our lifetime. You might count how many currencies have failed since you’ve been born. You might suspect this happened only to third world countries. You’d be wrong. There was no discrimination as to the size or perceived stability of a nation’s economy; if the leaders abused their currency, the country paid the price.
So what’s the one word for the “thousand pictures” below? Worthless.
Yugoslavia – 10 billion dinar, 1993
Zaire – 5 million zaires, 1992
Venezuela – 10,000 bolívares, 2002
Ukraine – 10,000 karbovantsiv, 1995
by Charles Hugh Smith
Posted July 22, 2011 on Of Two Minds
The banks of Europe are the new Feudal Manors and Masters. All Europeans now serve them as debt-serfs in one way or another.
IF WE KNOCK DOWN ALL THE FLIMSY SCREENS OF ARTIFICE AND OBSCURING COMPLEXITY, what we see in Europe is a continent of debt-serfs, indentured to the banks under the whip of the European Union and its secular religion, the euro. I know this isn’t the pretty picture presented by the EU Overlords, of a prosperity built not just on debt, but on resolving the problem of debt with more debt, but it is the reality behind the eurozone’s phony facade of economic “freedom.”
What else can we call the stark domination of the big banks other than Neo-Feudalism? In one way or another, every one of the 27-member nations’ citizens are indentured to the big international banks at risk in Europe, most of which are based in Europe.
Amidst the confusing overlay of voices and agendas, there is really only one agenda item: save the big European banks. Everything else is just mechanics. The banks are the new feudal manor houses, the bankers are the new feudal lords, and the politicians of the EU and its influential member nations are the servile vassals who enforce the “rule of law” on the serfs.
Here is the fundamental fact: there are trillions of euros of debt which can never be paid back. In a non-feudal system, one in which the banks were not the Masters, then this fact would be recognized and acted upon: something like 50% of the debt would be written off in one fell swoop, all the banks whose assets had just been wiped out would be declared insolvent and liquidated, the remaining debt would be sized to the economic surplus of each debtor nation, and a new, decentralized banking sector of dozens of strictly limited, smaller banks would be established.
To the degree that is “impossible,” Europe is nothing but a Neo-Feudal Kleptocracy serving its Banker Lords.
The Greek worker whose pay has been slashed in the “austerity” demanded by the banks serves the Banker Lords, as does the German worker who will be paying higher taxes to bail out Germany and France’s Banker Lords. Though the German is constantly told he is bailing out Greece, the truth is Greece is just the conduit: he’s actually bailing out the EU’s Banker Lords.
We can clear up much of the purposeful obfuscation by asking: exactly what tragedy befalls Europe if all the sovereign debt in the EU was wiped off the books? The one and only “tragedy” would be the destruction of the “too big to fail” banks, not just in Europe but around the world. As the big European banks imploded, then their inability to service their counterparty obligations on various derivatives to other big banks would topple those lenders.
While the political vassals call that possibility a catastrophe, it would actually spell freedom for Europe’s 500 million debt serfs. From the lofty heights of the Manor House, then the loss of enormously concentrated power and wealth is indeed a catastrophe for the Lords and their political lackeys. But for the debt-serfs facing generations of servitude for nothing, then the destruction of the banks would be the glorious lifting of tyranny.
from Jesse’s Café Américain
Posted 24 July 2011
IT IS SAID THAT DURING THE ROMAN TRIUMPH, in which a great hero was recognized by a procession through the city, generally for a military victory, a slave was positioned behind them, whispering in their ear:
“Memento mori,” roughly speaking ‘Remember that thou art a man.‘
As you may recall, Rome had become a Republic, after the overthrow of its monarchy, and enjoyed a period of Hellenistic influence, both in science and philosophy. In its decline into the reign of the imperial, god-like emperors and their increasingly idiot and sociopathic successors and sons, the elite became utterly distinct from the people by self-decree. ‘They would become as gods’ is a hallmark of an empire on the road to decline and decay, repeatedly endlessly through history. It is the logical end of the will to power, in which none will be served but oneself, with power as an obsessive distortion of self-preservation and ego.
Death is the great leveler, and the balancer of the scales of fortune. Perhaps a member of the middle class can whisper this to the financiers and the politicians, those newly made masters of the universe, as they bask in their moments of power and triumph, and forget their commonality with the people.
Better to have someone whisper in your ear, than succumb to the excess of self-delusion and have the crowd cut it off with your head. But madness has no discourse with logic.
Roman Art: Memento mori, a philosophical theme during the Hellenistic period, an allegory of death that has rebalanced and weighs the same as all people regardless of their wealth and social status, with symbols of Life and Death.
Illustration above: Mosaic from Pompeii. 2nd style. 47×41 cm Museo Archeologico Nazionale, Naples
by Justice Litle
Editor, Taipan Publishing Group
Posted 20 July 2011
In China, a massive real estate bubble has left 64 million apartments vacant – and millions of laborers angry.
BEIJING — Chinese police “gunned down” several rioters after four people were killed in an attack on a police station in the northwestern region of Xinjiang, the state media reported, in what appeared to one of the most violent incidents in the mostly Muslim area since it was shaken by ethnic rioting in 2009.
Two security personnel and two hostages were killed, and one other security officer was injured in the attack, which began around midday Monday in Hotan, a small, remote oasis city on the edge of the Taklamakan desert, the state-run Xinhua news agency said. The agency gave no details of how many attackers were killed or injured.
It is hard to know the frequency or intensity of “civil unrest” incidents, due to media suppression and spotty regional coverage. But it is clear the necessary conditions for sparking unrest – a civil unrest brushfire if you will – are in place.
One dynamic that could touch off the inferno – empty Chinese apartments.
By some estimates, China has as many as 64 million apartments that remain unlived in. This is a function of the “ghost cities” phenomenon (more on that in a minute), in which vast metropoli are constructed with no rhyme or reason.
Why would this be a factor for unrest? Because even as these apartments go empty, gathering dust waiting for renters who never come, poor Chinese laborers are living in epically crowded conditions. For all of China’s phantom real estate, there are multiple families sharing tiny domiciles, with as many as 11 in a two-bedroom apartment.
It doesn’t make sense. With so many residences barren and empty, why is the Chinese labor class packed in like human sardines?
Because the shiny new apartments are far too expensive for the average Chinese worker to afford – orders of magnitude more than the average salary, with very strict payment terms (50% up front, 36 months for the rest).
The Chinese real estate market is booming, nonetheless, because property developers keep finding ways to finance construction – and wealthy Chinese investors keep buying. Empty buildings will often see units snapped up by out-of-town buyers, only to have “for rent” signs go up in the windows a short time later.
The vast majority of apartments remain empty. Sold by Ponzi real estate developers… bought by Ponzi investors… a self-sustaining cycle in which prices go up because the buyers are making them go up. It’s the “greater fool theory” in full effect.
Here’s a thought: Why don’t Chinese officials just order large price markdowns on these expensive, empty albatrosses, so that the crowded laboring class can move into them and have nice places to live?
There is just one big problem with that notion: A wholesale markdown on Chinese real estate, to levels anywhere near what real buyers can afford, would potentially bankrupt China’s property developers… thoroughly outrage the well-connected property investor class… and lead to a full-blown banking crisis as hundreds of billions in loans went bad.