A perspective of the financial end game

[utopian]

For those of you watching finances, you know we have an interesting time ahead of us. The Federal Reserve recently announced, again, that it would not be raising interest rates. Typically this is a sign that the economy is not yet strong enough for the bank to raise their rates. The thing is, they have been putting off raising the interest rate for a long time. A very long time. Almost long enough for the 10 year bonds that were first issued when the interest rate hit 0% to mature. It was widely expected for rates to be raised even before this month, and with the recent announcement, investors are beginning to ask; "What is it the Fed sees, that is so dangerous, that they would still not raise rates?" Their lack of announcement has triggered somewhat of a rally in gold and silver. Good for me. Bad for the masses.

 

 

 

 

Now I don't mean for this to be an all-encompassing thread about money, those in the know, know just how far reaching a goal that is. But I do want to touch on some of the recognized problems people are facing today, and perhaps more people can get a glimpse of the big picture of the world's financial problem. 

 

First consider this TEDx video;

 

 

The speaker, Adam Carroll, does a good job of explaining how people are being raised to not understand the impact of money. One of the problems with this is student debt in America, which is totaling over 1 trillion dollars. A number the impact of which tends to not even impact the average person. The premise of the video is that money is being treated today as if it were not actual money, and people are living beyond their means because of it. According to Adam, 1 in 3 students are delinquent on their payments, and 1 in 5 are in default. Who knows what kind of prospective life the rest of the students are looking at. Arguably, this would not have happened if these students were working with actual cash money, or, heaven forbid, actual gold and silver. 

 

 

 

 

Now, considering this, some of you may be aware that the US government has a high chance of shutting down at the end of this month, or maybe postponing the shutdown to the end of next month. They are fighting over money again, perhaps most notably, the debt ceiling. One of my sources, Stansberry & Associates, saw this coming even before the month of May, when they sent me a news letter titled "Guess who is running out of cash?" If the government, during the shut down, does not vote to raise the debt ceiling again, it will not have enough money to continue operating. It will likely fight for a while, like it did in 2013, and then raise the debt ceiling again. It will also likely lower America's credit rating again. America has no way to pay off the debt, and one day it will not be able to continue borrowing. One day, someone will have to declare to refuse to pay the debt.

 

 

 

But why does that matter? Well, we recently saw what happens when a country refuses to pay it's debt, with the example of the Greece debacle, as can be found in another thread here on this very forum.

 

https://board.freedomainradio.com/topic/22871-greece-economic-crisis/

 

When a country refuses to pay the debt, the banks stop allowing the citizens of that country to get and use money. 

 

 

Now, that might not be a problem, if everyone has physical cash. Unfortunately, because of fractional reserve banking, only 10% (and some argue less than that) of all money exists as physical cash. The rest of it exists as credit. Most of us go through our daily lives swiping debit and credit cards, thinking nothing of it, and spending more money as a result of our disassociation with physical cash as shown in the TEDx video. Bill Bonner, head of the Agora research website, details what it may look like if the banks suddenly stopped letting us use their credit system, in his recent video;

 

https://www.youtube.com/watch?v=YQ0KG3hcnog

 

 

 

Now the video is a lengthy hour and a half, more than I can expect the average person to be bothered with, to be sure. I have watched all of it, and not all of it is news to me. Let's just simplify things by me telling you, if America ever does choose to default, it could stop over 90% of our economy from functioning. The event and its aftershocks are too grand and dire to be covered in any reasonable amount of time. Let's just say it would be catastrophic for the world. 

 

 

 

 

 

But what is the alternative? The alternative is, that the disassociation from physical money continue, until 100% of the world's economy is using the bank's credit system, and then they will be able to have us all manipulated well enough to delegate what an individual may buy and sell. One of the most recent articles I have received from "The Stansberry Digest" details how this plan was the bank's real goal all along;

 

 

 

The Case for Outlawing Cash
By Bill Bonner, editor, The Bill Bonner Letter

Investors are losing confidence…

They're probably losing confidence in corporate managers, for instance.

Who wants to own stock in companies run by numbskulls who buy back shares in their companies at record prices just before a major selloff?

Or maybe they're wondering whether the world's $200 trillion in total debt (roughly 300% of total output) can possibly be paid back?

Or maybe they're beginning to puzzle out how scammy and fraudulent the Fed's policies are.

But watch out! Reeling from the jabs of the last two weeks, expect a strong counterattack from the zombies and their allies.

Some Fed governor will come forth – maybe even Janet Yellen – and tell us not to worry about a return to more "normal" interest rates anytime soon.

We're way too far into the weird to get anywhere near normal now. And surely Wall Street shills will be in the news explaining how markets become unreasonably fearful from time to time. They will tell investors that it is time to hunt for bargains.

Dow 25,000! Why not?

And they may be right. There's bound to be an inflationary blow-off waiting somewhere ahead.

Stocks will soar. But not before they crash.

Retiring Another "Barbarous Relic"

In the meantime, watch your rear: There's a serious counterattack coming.

It will be an attack on our supply lines. The cronies and the feds will attempt to cut off our finances and our line of retreat, trapping us between the anvil of the market's deflation and the hammer of the Fed's inflation. There will be no escape, no way out.

Last week, the influential Financial Times newspaper ran an article calling for the abolition of cash. It was titled, "The case for retiring another 'barbarous relic.'" And it claimed that cash causes "a lot of distortion in the economic system."

Can you believe it?

Cash causes economic distortions! From the FT:

The existence of cash – a bearer instrument with a zero interest rate – limits central banks' ability to stimulate a depressed economy. The worry is that people will change their deposits for cash if a central bank moves rates into negative territory.
The article also repeated the familiar claims that cash also is what finances terrorism, tax evasion, and the black market. Making cash illegal, it says, would "make life easier for a government set on squeezing the informal economy out of existence."

You see where this is going, don't you, dear reader?

If the feds are able to ban cash, they will have you completely under their control. You will invest when they want you to invest. You will buy when and what they want you to buy.

You will be forced to keep your money in a bank – a bank controlled, of course, by the feds.

You will say that you have "cash in the bank," but it won't be true. All you will have is a credit against the bank. (Bank deposits are nothing more than IOUs from your bank to you.)

A Tax on Your Bank Deposits

As it is now, your bank will have some cash on hand in its vaults, but not nearly enough to satisfy all the claims against it.

If this new attack succeeds, by law, it will have no access at all to cash. And neither will you…

You will be completely surrounded. If the feds want to force you to spend… or invest… your money, they will simply impose a "negative interest rate." They will do this by simply imposing a fee, or tax, on deposits greater than the interest rate you receive on your savings.

In 2001 in Argentina, they closed the banks. When they reopened, dollar holdings had been converted to pesos, with a loss of roughly two-thirds!

In 2013 in Cyprus, they whacked large accounts with a 50% tax to help recapitalize the banks.

And in the U.S., JPMorgan Chase recently sent a letter to its large depositors telling them that, as of May 1, it would start charging what it called a "balance sheet utilization fee" of 1% a year. This pushed the net interest rate those depositors were earning into negative territory.

As stocks decline, you can expect more and more people to want to hold cash. If stocks go down 10%, the "opportunity cost" of holding cash goes down by the same amount.

People will want to hold cash. But if this encirclement maneuver works, you will be unable to get your hands on it. All you will have is a claim against some of the most insolvent debtors in the whole economy.

Cut Off from Cash

In 2008, almost every major U.S. bank was on the edge of bankruptcy.

But if the feds succeed in cutting us off from cash, that will never happen again. Because the banks will just whack us all – with the full approval of the Fed, the cronies in Congress, and zombies everywhere – to make themselves whole again.

Already, several readers have reported that they have had trouble getting cash from their own accounts.

Banks stall. They impose withdrawal limits. They want you to come in person, etc., etc.

Right now, being unable to get cash promptly is merely a nuisance. But just wait… It won't be long before new initiatives are announced to "stimulate demand."

Perhaps negative interest rates will do it. Maybe a more general tax. But sooner or later, the next credit crisis will hit hard…

Then your inability to get cash will be more than a nuisance. It will be a deathblow. You will be locked into a bank account with a bankrupt institution.

And the feds and their bank cronies will tell you when and how you can have access to your own money.

The feds will announce a "bank holiday." They may ban transfers to gold sellers or foreign currency accounts. Or maybe it will just take time – while your money loses value rapidly – to get your money out.

If this new campaign succeeds, it will be almost impossible to protect yourself.

Regards,

Bill Bonner

 

 

There are only three countries in the world currently not owned by a private central bank (and thus not subject to the manipulations of the creditors) and those are Cuba, Iran, and North Korea. Cuba is of course currently in talks with Washington, and Iran and North Korea are facing hostilities from America. 

 

That list used to be longer. In 2000 there were four other countries not owned by a private central bank. They were Afghanistan, Iraq, Sudan, and Libya. America took over Iraq and Afghanistan, of course, and the UN took over Sudan and Libya. Not unlike what seems to be happening to Iran and North Korea today. And so, the world is only three small countries away from being completely under the control of the private central banking system. Once private central banks are installed, we are only a few money manipulations away from being completely controlled by the private central banks.

[Coonage]

Great topic! This is (or should be) front and center on everyone's minds.

 

I think my Sunday evening invoicing and paperwork, just got pushed to early Monday am.

[mlsv2f]

Its usually a good idea to keep a few grand in cash and silver/gold at your home, as well as a some gasoline stored and even bitcoin. Enough to get you out of town and out of the country if need be.

 

Link your brokerage accounts to an offshore bank so if you ever sell off your equities, you can have the money wired out.

 

Not sure if this will ever happen, but its always best to be ready, not to mention linking your brokerage account offshore allows you to get your money out as you get older if you ever want to leave

[utopian]

Something I meant to include but forgot, there is a fairly famous entity which has suffered the consequences of a direct manipulation of the credit system by the banks, which does not allow you, the supposed owner of the money in your account, to buy or sell as you please.

 

Wikileaks was excommunicated by the credit system after one of it's massive intelligence releases. Since then they have been unable to send or receive any of what is supposed to be their own money. They have a web page dedicated to this fact;

 

 

https://wikileaks.org/Banking-Blockade.html

 

 

 

 

WikiLeaks has published the biggest leaks in journalistic history. This has triggered aggressive retaliation from powerful groups. Since 7th December 2010 an arbitrary and unlawful financial blockade has been imposed by Bank of America, VISA, MasterCard, PayPal and Western Union. The attack has destroyed 95% of our revenue. The blockade came into force within ten days of the launch of Cablegate as part of a concerted US-based, political attack that included vitriol by senior right wing politicians, including assassination calls against WikiLeaks staff. The blockade is outside of any accountable, public process. It is without democratic oversight or transparency. The US government itself found that there were no lawful grounds to add WikiLeaks to a US financial blockade. But the blockade of WikiLeaks by politicized US finance companies continues regardless.

 

 

Whether you agree with the actions of Wikileaks or not, the fact of the matter is that the banking institutions have the capability to alienate you from what is supposed to be your own hard earned money, at will, without reason and without due process.

 

It is the goal of these institutions to bring the entire world under this control, which is why there are only three countries left outside of it's system. Once they achieve their goals, they will be able to prevent anything that does not agree with their agenda simply by freezing your financial assets, like they did with Wikileaks. There will be nothing preventing them from buying and selling what they believe you should have for you.

[GailG]

What you are failing to accept is that cash money is debt and nothing more.  The dollar in your pocket is a debt certificate.  It does not represent a fraction of value as most people think it does.  It represents a fraction of the bank's debt.

 

America went off the gold standard in 1971 because America was already bankrupt. That means that when a bank starts up, it places a bunch of debt certificats to hold in reserve.  It must retain at least 10% in reserves, though other situations only require that 3% be held in reserve.  It then lends out the other POTENTIAL 90% which is how it invents money into existence.  Our money is backed only by the false belief that the dollars have REAL value.  They don't.  They have negative value.  I call them anti-dollars.

 

Our monetary system is mathematically guaranteed to collapse.  Here is why:

 

Let’s say that you wanted to get a mortgage for a house from the bank where 1 million anti-dollars were desposted.  And let's say that you were one of those 90 who wanted $100,000 to buy a house.  The amount of interest you need to pay on the mortgage will come to $93,255.78.  (5% over 30 years).   You received $100,000.00 in debt certificates.  $100,000 has been invented into existence.  The other $93,255.78 that was never invented into existence but must also be paid has to come from other anti-money, which is why the game is like musical chairs.  Your goal is to get your hands on anti-money before the other guy gets it.  Greed, aggressiveness, dishonesty, and competitiveness are natural consequences of our destructive money system, thus central elements of our culture that is held together by it.

 

If the bank used all of its money-inventing abilities funding mortgages, it would see an average yearly return of nearly half a million dollars (50% return on its investment of that which has negative value).  If that's not enough, the bank could involve itself with credit cards.  At an average rate of 13%, the bank will realize more than 100% return on its original depost - every single year.

 

It would be just as easy for the government to print a dollar bill as it is to print a bond that has interest attached.  Government won't do that because your elected representatives want to get re-elected, and they can't do that if they raise taxes to pay for all that they want to spend money on.  So they borrow instead, making those tax increases much much smaller.  But as government borrows the anti-money that it needs, the debt grows.  Because the interest has never been invented into existence, if government wanted to pay off the debts today, it can't.  There isn't enough money to do it.  Today, governmnent incurs almost half a billion dollars a day in interest that is also due and has never been printed into existence.

 

Government could create some trillion dollar coins and pay off the debt, but the inflation and resulting crash of the banking system will cause violence and revolt in the streets of America as people struggle to find ways to eat.

 

The easiest way to invent reasons to invent  debt into existence is WAR.  Not only do wars require the building of armaments, but after the war, countries need to be rebuilt.  It's win-win for the bankers who own government.  It is a rare person who understands that WWI and WWII were actually economic wars sold to us as stoping the spread of fascism.  So as we went about telling ourselves that we were the greatest nation in the world because we defended freedom, we were actually defending fascism from the spread of freedom.  We've been lied to so much in public schooling.

 

The day WILL come when - with absolute certainty unless we willingly discard capitalsim and bring it down in a CONTROLLED crash - we won't have enough money to pay a single interest payment on the debt.  Unless we take control in advance of that, chaos is certain to follow.

 

We can take control.  We just don't know how because we have been so "DISeducated" in public schools.  The longest lasting and strongest constitutional republic was a democracy by consensus with full equality.  They didn't use money.  They overcame their violent ways and established "The Great Peace", that was its constitution.

 

I just finished writing a book about this.  It's not published yet as it still needs some editing.  You can read it for free at my website www.gnewman.org.  If you want to understand how money works, open the middle part and query the PDF file for the words Musical Money. 

 

The second video you posted is just another of those venture capitalists who WANT you to be afraid of giving up capitalism.  There are many commercials like that on the web.  He's just tyring to get you to buy gold from him. Don't bother. There is a better way.