…We Want To Know
Wednesday, September 8, 2010
Posted by The Interest on March 3, 2009
The below clip is from the Money Master’s 2, or The Secret of Oz. It is a new documentary that will update the previous version that is below the YouTube clip.
Looks like this new version will build on Ellen Brown’s The Web of Debt. Should be interesting since one of the topics is to discuss the option of governments not issuing debt. A conversation we need to have in this country.
Here’s the original Money Masters…
Posted by The Interest on February 27, 2009
As seen on Good Morning America and from Consumer Warning Network.
It is stated in this video that this “product the note” tactic is only a delay tactic until the bank can produce the electronic copy of the note. And there’s the next step. The bank must show the actual physical contract (sheet of paper) that you signed. An electronic print of that contract is not the actual contract. Is it a facsimile. (Or on its face it “appears” similar.) Since the facsimile is not the document you signed, just say you don’t recognize that document. If needed, get forensics to verify that this is not the original note.
Why would GMA tell people they can do this? Because they know that banks will eventually produce the electronic copy of the note. Will they produce the physical, real, contract? Probably not. Thus, the assumption by GMA that these people will eventually either pay or be removed from their property.
Posted by The Interest on February 19, 2009
Excellent video explaining the problems with mortgage/housing debt in relation to the credit crisis…
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.
Posted by The Interest on February 18, 2009
Dumping money into a giant hole. Courtesy of The Onion.
Posted by The Interest on February 12, 2009
Huge day, today, February 12, 2009. Today is the 200th birthday of a great, yet not so great, President Abraham Lincoln. (I say not so great since the libertarians believe he went too far against our freedoms–not the slavery thing, but other limitations on free speech, etc.)
Also, today marks the 200th birthday of Charles Darwin. Have to admit, I didn’t realize Lincoln shared the same birthday with Darwin.
Now, what is so significant about this day? It could be, it really could be the date the world changes as it reflects the impact of what these two people meant to the world and how this may affect the world including finance.
Sure, Darwin probably didn’t have that much of an impact on finance, but just do a google for “Darwinian Flush” and you’ll read about a reset that is needed in the banking system. A commercial for CNBC’s documentary House of Cards mentions the Darwinian Flush also.
So, on this big day of 200th birthdays could we be seeing the next major leg down? Could we then see a re-birth of what has to happen, the default of all debts, derivatives worth 10 cents on the dollar, and our dollar being worth 10% of what it was? Hmm. We may be on the verge of something really big.
Posted by The Interest on February 11, 2009
Today on Capital Hill the House Financial Services Committee is grilling some bank CEOs about various issues surrounding lending, compensation, etc. The discussion is leaning toward blaming the banks for the problems of the economy. This discussion is misdirected or at least incomplete at best.
In order for new money to be introduced into the system via the government, the government must create treasuries that the Federal Reserve purchases thus giving the government the money that it needs. The Federal Reserve then sells these securities to investment banks like Goldman Sachs, Morgan Stanley, etc., who then deposit this money into commercial banks like JP Morgan, Citibank, or Bank of America. Thus, the cycle of fractional-reserve banking gets rolling.
So, you see it takes three to dance. The Fed, the investment banks, and the commercial banks. Since government outsourced its currency creation to the Federal Reserve and the system of banks, it doesn’t control how the operations of these banks work. Add to this the need for spending by the government for pet projects and pork in order to get elected, the government actually needs the banks to monetize the debt that the government creates.
The other currency creator in all of this are the commercial banks where they create, out of thin air, loans for automobiles, homes, businesses, etc. These loans are a very large part in the creation of the currency in our monetary system.
The discussion of bank executive pay by Congress and this government is ridiculous. The banks were doing just what the government wanted them to do, and right now they are being dragged on the coals to be made out as the bad guys. There may be some bad guys in there, but the problem isn’t the compensation of the bank executives. It is the outsourcing of the most important asset of a country. Its currency.
Posted by The Interest on February 10, 2009
Today is the day where the night before President Obama told us government must do something and now we hear Treasury Secretary Geithner wants to do some kind of public and private plan to fix the banking system while doing some kind of controlled burn.
How can the banking system around the world produce enough to sustain $683,725,000,000,000 in derivatives? (See this pdf from the Bank of International Settlements) How long will we continue to play this game? The First World is now completely bankrupt. There is no more money. The debts can not be paid. The Third World and the First World are the same now, but the First World hasn’t woken up yet.
It is time to stop. Just stop the madness. All debts are in default. Let’s start from scratch. It is time to reboot, reset, take the hangover cure. We the people of the world need to convince the powers that control us to get out of the way. The banks are not too big to fail. We need to take back our destiny and control of our currency and money.
Put a stake in it. The banking system as we know it is done.
Posted by The Interest on February 9, 2009
Continuing this discussion about velocity, the below chart is making its rounds on the Interwebs. What it appears to show is that velocity is negative which is to say that people are hoarding money and either not borrowing or banks aren’t lending.
The money isn’t changing hands.
Another chart below shows reserves increasing at the banks. To me, what this means is that people have a lot of cash in their mattresses.
Now, let’s momentarily hold the conversation about money as debt and that interest dollars are not created. What would you do if you wanted to pry the dollars out of the hands of people who are hoarding it?
You’d devalue the dollar. Kill it as a currency. Question: Would the banks allow debts that originated in US dollars to be paid back with worthless US dollars? That would reduce the debt over night. We’ll see if they’re willing to do that.
If you saved your money, it is now worthless. Is this hyperinflation? No, this is just criminal.
Posted by The Interest on
Must see example from The Guardian of the global financial pyramid scheme explained…
The above is the final slide that talks about velocity of money. As we’ve learned here at “Where’s the Interest?”, the supply of money may not be the determining factor of whether there is enough money to pay bills or even interest, it is the frequency of which this money changes hands or the velocity.
The equation above is mv=pq. Or Money (supply), Velocity = Price, Quantity (economic output). As you’ve been hearing, prices (result of deflation) are falling, as unemployment increases total output is falling, and even though money supply has increased, this is largely new debt and not being lent. Velocity has fallen greatly. It is estimated that the total amount of all the derivatives in the world is equal to $600 trillion. Or 1/10th of the total GDP output of the world.
The debt cannot be repaid. That isn’t the concern by the banks. All they want is you to pay the interest. Without velocity, “Where’s the Interest?”
Posted by The Interest on February 8, 2009
Over at the naked capitalism, Yves cross posted with permission from Steve Keen’s Debtwatch blog a post titled Steve Keen’s DebtWatch No 31 February 2009: “The Roving Cavaliers of Credit” (Now that we’ve got all of this crisscross out of the way…)
Keen’s point in all of this is that credit money is created first before fiat money. Put simply, the bank extends credit, but the fiat end where this money then gets deposited in another bank where credit can again be created doesn’t really work out that way.
What he is getting at is that money is almost always debt. A bank doesn’t wait for its deposits to increase for it to participate in fractional-reserve banking. Rather, it just creates the money, immediately, out of thin-air. Thus, our money supply is really a credit supply with the money part taking place later on in the exchange of goods.
His argument than is that there will in fact be credit crunches where banks no longer lend, but the idea that helicopter Ben can just add to the reserves of the banks doesn’t mean that this money will end up in the pockets of the people who then will spend it.
As we’ve started to learn hear at “Where’s the Interest?”, the velocity of money has a role in the nominal money supply where $1 can be used in many transactions thus increase the apparent money in the system. What Keen is saying though is that velocity and nominal money supply is a follow-on phenomenon of credit creation and without more credit creation, velocity will surely slow.
Thus, getting back to “Where’s the Interest?”, is there less nominal money available in the system to even produce the interest need to pay on debts? More research is needed.
