Wall St and the Bankruptcy of America

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strabes's picture
strabes
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Wall St and the Bankruptcy of America

Excerpt from an article talking about the 1st E of the CC...

http://canadafreepress.com/index.php/article/19918

Quote:

Supposedly Wall Street is responsible for making the United States the wealthiest country in the world.  Yet, if that is true, how could the US be trillions of dollars in debt?  Why is almost every state bankrupt?  Why are Americans losing their homes?  Why does the lower class have to work multiple jobs to feed their families?  Why do both parents in middle class families have to work when one parent could easily support the family fifty years ago?  We were told we were making so much progress over those years thanks to Wall Street.  What happened?

My apologies for so many questions, but sometimes the only way of making a point so dramatically different from CNBC propaganda is to ask the obvious.  Hopefully the questions make it clear that the United States is hardly the richest country in the world.  Instead it is the most insolvent, drowning in the most debt.  This is because the very core of our money and banking system, headed by the Federal Reserve and cartel member Wall Street banks like JP Morgan Chase, is based on nothing but debt.  If only we would have listened to John Adams, “There are two ways to conquer and enslave a country.  One is by the sword.  The other is by debt.”

So strip away the complex façade of high finance, and it should be clear given the current state of the US economy that Wall Street puts people, businesses, and governments in debt.  As opposed to sucking off only the taxpayer as it did after the crash of 2008, Wall Street sucks off both the interest payer and the taxpayer in other years.  The more indebted Americans are, the more short-term bonus money Jamie Dimon’s team and the Goldman traders make.  When Wall Street would otherwise go bankrupt from excessive debt-based profiteering, the government props them back up because it is also controlled by debt.  In fact, the monopolizing Wall Street cartel only exists because of the government.  This should smash the prevailing belief that Wall Street as currently structured represents anything close to a free market institution.

The government made a grave error creating the cartel because, unfortunately, the rise of Wall Street goes hand in hand with the decline of America.  A bank cartel with government protection, which adds no productive value to the economy but instead sucks value from everything else, eventually hollows out the host upon which it lives. Real value comes from community relationships, effective local governments and businesses, farming, manufacturing, construction, etc.  Wall Street, on the other hand, is a massive mining operation that lords over all the people and institutions doing those activities.  It is just a different version of the feudal kings of old who staked controlling claims around the world to mine people and resources.  Once the Federal Reserve Act created the Wall Street cartel with a permanent controlling stake over the entire system, the American republic was doomed, guaranteed to be converted into a voracious corporate empire in a matter of a couple generations. 

--------------------------

Due to its compounding nature, having interest attached to all the money in the system creates the need for exponential growth.  It must continuously expand.  This is why we have seen so many developing countries conquered by debt in the last several decades.  A steady state is not possible.  Neoclassical economics inexcusably ignores this by implying that our system is driven by production and money is simply a medium of exchange that facilitates it.  On the contrary, the very nature of the debt-based money pumped out by Wall Street and the banking system requires growth.  We see such growth in ever-expanding shopping malls, ever-decreasing quality of franchise food, ever-increasing number of manufacturers moving offshore to find lower cost labor, and many other ways.  These are bad enough.  But if growth is not driven by production that can maintain more stable levels of debt, how else can the system grow? 

An illusion of growth can be created by simply issuing more debt.  This is called credit inflation, which is for the most part the type of growth the US economy has experienced ever since 1971 when the dollar was changed to allow for infinite credit inflation.  If the banking system is viewed as a casino, credit inflation is passing out extra free chips to everyone, which makes people think they are more wealthy. It certainly makes the casino, i.e. Wall Street, more wealthy as they extract their rigged profit from an expanded game with far more chips, but the reckoning with the truth eventually comes when everyone else tries to cash out their chips.  The money will not be there.  This is what the world is facing as we approach a massive deleveraging decline in the economy.

Credit inflation spirals total debt out of control because more and more must be borrowed in order to payback all the interest in the system.  It is not hard to understand the problem with such a pyramid system—it crashes.  Is should have crashed in the 80’s, but the financial system worked overtime to prevent it.  Government then changed laws in the 90’s to prevent it again by allowing Wall Street to engage in chicanery that created a near infinite amount of credit inflation—the fraudulent derivatives market.  The Wall Street / DC axis of power colluded throughout the 2000’s to continue preventing it.

DrKrbyLuv's picture
DrKrbyLuv
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Re: Wall St and the Bankruptcy of America

Nice dig strabes.  Really enjoyed the article.

The Bank of England's brand is a private debt based money snare has been an ongoing scam for over 250 years.  A conspiracy?  You bet.

The mathematical flaw in our private debt/interest system is like loaded dice at a craps game.  A small minority of the people have always known this but their voices have remained obscure.  For example, even before the international banking cartel (Bank of England, headquarters in the sovereign state that is the City of London - the Crown) opened it's American Branch (Federal Reserve), the system was making inroads.

In 1891, Mary E. Hobart published a book entitled "A Scientific Exposure of the Errors in Our Monetary System" in which she said:  

"The great robber of all our financial prosperity is the legalized power of the dollar to draw interest. It is only legalized power because the dollar is a dead, inanimate piece of matter utterly destitute of the power of increase and when we give it the power to draw interest we give it the power to disturb our business, bankrupt our merchants, to foreclose our real estate and to rob labor of its just rewards. To substantiate these statements we need not at all resort to theory. There is an abundant mathematical proof. Whenever we operate with numbers we have mathematical law and the operations which we perform with numbers must conform to mathematical law and be susceptible of mathematical proof.

Our present monetary system was established by legislation, without any reference to the mathematical science of numbers. Our legislators did not understand that their mandate could not set aside the immutable laws of the universe, and most terribly have the people of this country and England suffered for their stupidity. It is a universal belief that our system is founded in harmony with mathematical law. Turn the pages of all the political economies from Adam Smith to Henry George, and you will search in vain for a single sentence stating that interest is an imaginary quantity, or that a contract calling for interest is a contract calling for the production of money.

Our law-makers assumed that contracts calling for the production of money could be eliminated or canceled by the production of values. An interest obligation is a contract calling for sum of money called the principal, plus another sum of money called the interest. If we suppose a principal to be ten dollars and the interest one dollar, then this one dollar calls for the production of money. It cannot be canceled by the production of valuation, that is by producing cattle, corn or wheat.

Our banking system contains a definite number of interest-bearing contracts, every one of which calls for an absolute increase of money. The banker does not take for his interest cattle, wheat, corn or hogs. He demands all the money he loaned plus an imaginary sum called the interest. This interest is nowhere in sight.

This condition corresponds precisely to the past history of the credit system. It has centralized the real estate of Great Britain into the hands of the noble(?) few and converted her hardy yeomanry into tenant farmers and paupers. One half of England is said to be actually owned by twelve persons and the other half by less than 20,000. What this system has done for Great Britain it will do for America.

No one who has not given this subject a thorough and exhaustive investigation, can form any just conception of the vast accumulative power which money derives from interest, for under our present system our circulating medium is not merely loaned once annually, but it is loaned and re-loaned a great number of times, so that the dollar draws from society not merely six or eight per cent interest yearly, but it draws ten or twelve times this rate."

The modern banking cartel consists of "independent", central banks that contract nation states as clients.  Now we are moving to the next phase, international consolidation of central banks and the elimination of the client states.

Larry

 

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Re: Wall St and the Bankruptcy of America

That´s a great article Strabes/Larry.

Isn´t that the same as what Mike Montagne is telling us and offering solution at the same time?!

Since 1979!

Wink

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Re: Wall St and the Bankruptcy of America
strabes wrote:

Excerpt from an article talking about the 1st E of the CC...

http://canadafreepress.com/index.php/article/19918

strabes,

Congratulations on writing a superb article.  This is one I'll e-mail and also print out to distribute.  Thanks. 

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Re: Wall St and the Bankruptcy of America

Good read!

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DrKrbyLuv
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Re: Wall St and the Bankruptcy of America

ao wrote:

strabes, Congratulations on writing a superb article.

Whoa, I didn't know that strabes wrote this...congrats strabes, job well done!

Larry

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Re: Wall St and the Bankruptcy of America

 

Strabes, 

 

What do you suppose would happen to the monetary system if congress abolished legal tender laws?

 

I found this on the web regarding the mathematically perfected economy theory      

  http://www.axiomaticeconomics.com/montagne.php

 

 

 

 

 

 

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Re: Wall St and the Bankruptcy of America
Carl Veritas wrote:

What do you suppose would happen to the monetary system if congress abolished legal tender laws?

I found this on the web regarding the mathematically perfected economy theory      

Wow.  You M-PET folks are like kudzu around here.  Have you not posted that link in every thread on this site for the last week?  Plus started a thread specifically dedicated to the M-PET stuff?  Is enough enough already?

idoctor's picture
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Re: Wall St and the Bankruptcy of America

Plus started a thread specifically dedicated to the M-PET stuff?  Is enough enough already?

+1000.....Money mouth

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Re: Wall St and the Bankruptcy of America

strabes's picture
strabes
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Re: Wall St and the Bankruptcy of America

Carl, a couple issues regarding legal tender:

1.  It seems to me that might just take us back to the days when multiple banks had multiple currencies, all of which were just different ways of putting people in debt.  This is the risk of eliminating the Fed before we have a real solution.  The Fed actually locked all the banks down from raping people faster in wild inflation/deflation cycles.  So that particular aspect of the Fed was a good thing in my view--enforcing a single, more steadily managed, US-wide currency.  As bad as the Fed is, the last thing I want is for JPM Chase to be free to pump out its own currency (a chip, or their orwellian "freedom" card) with no higher level legal/financial controls on it and no requirement to provide people a printed dollar bill if they want one.

2.  That brings me to the bigger concern--I think this idea has been floated by the bankers on purpose because, as is well known, their goal is a cashless society.  The implication is scary.  Once Chase was freed from legal tender laws, they could say "hey come on in, get yourself chipped and get a free $10,000."  Imagine 300,000,000 people willingly electronically enslaving themselves just to get that credit from the bank that bankrupted the nation and has them all by the balls...George Carlin's words.

The problem isn't legal tender laws, but an issue of finance--every dollar must be borrowed into existence, so it's on the wrong side of the balance sheet.  It comes into the system as a debt with interest rather than an asset.  That IS the problem.  That's the reason this group of companies called banks has bankrupted the nation.  That's the basis of exponential growth, of a 2-tiered society of owner vs. borrower, of increased velocity in all of our lives and increasing prices.  It's the reason that no person, business, or government is sovereign.  Everything is in debt to a bank.  It's absurd when you think about it...6.7 billion people all laboring for a few that benefit from interest.

The solution is to simply return to the constitution.  The US government is obligated to provide regulated money that "promotes the general welfare."  They have failed.  The US government has been an utter failure for a long time.

So rather than abolishing legal tender, they should specifically legalize a certain form of legal tender--one that's an asset.  JFK's silver certs, Lincoln's greenbacks, etc.  That is the only solution that promotes general welfare, freedom, non-ownership of people, etc.

At different times in colonial and American history, we had sovereign money, where the government just provided money as a service to the people, rather than as a debt to a bank.  Those periods were times of true wealth creation vs. debt creation. 

Believe it or not, it's what Hitler did to recover from the disaster of what excessive debt did to Weimar.  People blame Weimar for printing money.  I think that's a banker ruse.  Based on the research I've seen, the government would've needed to print several times more money than it did to equal the amount of inflation they experienced.  They were victims of banker assaults on the currency just like Soros did to Britain and SE Asia.  Hitler said no.  He put asset money into the system for real infrastructure projects and that converted an economic wasteland into the most powerful economy in the world in a relatively short period of time.  Human beings are capable of producing tremendous value if only they're given a money system that has value for them. 

 

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Re: Wall St and the Bankruptcy of America

Thank you Strabes,

As long as we can agree to disagree.

Eliminating legal tender laws will not eliminate crooks.           We will  have them in both  the private and government sectors.  

   But what it can do is leave  the choice of which currency to accept to the people.  

   Wildcat banks failed because  we forced them to redeem their paper notes with their specie backing.        The greenback were Legal Tender notes issued at par with notes backed by specie,   issued by the north to pay for the war.     By summer of 1864 the greenback fell to only 35 cents and congress closed the gold window.    The reason was  not that there was too little gold to back the notes,   its the other way around,  too much  notes were printed in relation to its specie backing and people rushed to redeem.   Like a bank run.       Bretton Woods is just an international version of what happened to the greenback.

We'll just have to disagree about what happened then.

JPM Morgan and other banks can issue whatever they want,   as long as we are not Forced to accept them, they're out of business until they begin dealing with the markets preffered medium.       The choice should belong to the people.

 

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Re: Wall St and the Bankruptcy of America

fine, eliminate the laws, but make a new law prohibiting a chip and requiring some form of cash, paper, whatever.  we can't allow banks to have 100% control over everyone's purchasing power by giving people no option but electronic digits.

and if we're going to eliminate the laws, then we need to eliminate Chase's monopolized position first.  break them up, then eliminate the laws.  you can't unleash a monopolist on the masses.  that's their plan.  the reason you can't just leave it up to the people at this point is because nobody can compete with Chase...everyone would choose Chase because they're drowning in so much free money from the taxpayer and free gifts from the government like WAMU that they can offer endless freebies and bonuses to entice everyone.  look at the millions signing up for their "freedom" card (though we know debt has nothing to do with freedom) because it offers $100.  people are broke and desperate for any gimmick from Chase pushing them to go deeper in debt.

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Re: Wall St and the Bankruptcy of America

Carl,

But what it can do is leave  the choice of which currency to accept to the people.

Can you please explain what kind of currency choices you're talking about?

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Re: Wall St and the Bankruptcy of America

People blame Weimar for printing money.  I think that's a banker ruse.

At the height of the Wiemar hyper-inflation their interest rate was 900%.  At that time their government created no money, as is today, and all that money was put into circulation as interest bearing debts.   The Wiemar republic was not using money but was using interest bearing bank credit.  The exact same thing we use for money today in America.

Their problem, as is the problem in America is NOT to much money, it's to much credit.  The only think we use for money is credit.

Believe it or not, it's what Hitler did to recover from the disaster of what excessive debt did to Weimar.

I'm not so sure that is true, because I've found a lot of conflicting viewpoints.  I won't go so far to say it isn't true either, but one thing is foresure.  We have seen it so many times before, the banks create all the meduim of exchange as a promise to pay.  An obligation they never have to make good on, and they expand the 'money' supply as interest bearing loans where when time and interest kick in, the debt far exceeds the peoples ability to pay, then they quit loaning, and dry up the money supply forceing the people into forecloseur under 'color of law'.

Lets think about the reason why they had hyper-inflation.  Clearly they had to much debt, since all the money was created as an interest bearing debt, and the interest rate was 900%.  If you ran a business, how fast would you have to raise your prices to stay ahead of your interest?  If you were a consumer how much would you have to borrow to be able to afford any product or service that had to pass down a 900% interest cost of doing business?

At the height of the zimbabwe hyperinflation, their interest rate was 800%.  Paper reciepts in and of themselves cannot drive up the cost of doing business, but if they are loaned in at interest, clearly there is going to be consequences.  The banker is going to have a huge increase in profits, and the consumers are going to bear the costs of doing business.

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barrt
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Re: Wall St and the Bankruptcy of America

Contactless cards are already in the UK and eurozone!

" An estimated one in seven UK residents will have a contactless card by the end of the year, allowing them to put it close to a sensor to pay for items.

The new threshold brings the UK closer in line with European limits.

In the eurozone, contactless cards can be used for total purchases of up to 25 euros (£22.60)."

http://news.bbc.co.uk/2/hi/business/8545069.stm

 

"In East Asia the chip found in a plastic card is placed in an everyday item such as a mobile phone or a watch. This is then pushed against a sensor in a shop to pay."

 

The sheeple are geting used to the idea, its a small step next to insert the chip under the skin

 

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