A single Post, book, or documentary is not a dialogue and neither are they sufficient to give all regions a clear education of what is really going on globally. Every nation has the same model and the same problems that are threatening the freedom and joyful living for all People.
The model is founded upon perpetual debt and as such has effectively enslaved the people as debt slaves.
Many People on Earth may not have yet reached the understanding that pleading to governments that the people are suffering is ineffective. However, a significant segment of the People on Earth has awakened, and know that governments with its monetary policies are causing their suffering.
They KNOW the solutions, remedies, and healing will not come from the banks nor the governments.
Where do we go from here… ~Ron
[…] more and more people are starting to ask a fundamental common-sense question: why should governments indebt themselves in hard currencies, decades into the future with global mega-bankers, when they could just as well finance these projects and needs far more safely by issuing the proper amounts of their own local sovereign currency instead?
Here is where all the above “experts” go berserk & ballistic, shouting back: “Issue currency? Are you crazy?? That’s against the “rules & laws” of economics!!! Issuing national sovereign currency to finance the real economy’s monetary needs leads to inflation and lost jobs and chaos and… (puts us nice mega-bankers out of a job…)!!.” That’s when they all gang-up into noisy “The sky is falling! The sky is falling!!” mode.
Then you ask them: What happens when countries default on their unpayable sovereign debts – as they invariably and repeatedly do – not just in Argentina, but in Brazil, Spain, Venezuela, France, Costa Rica, Peru, El Salvador, Portugal, Russia, Bolivia, Iceland, Turkey, Greece, Cyprus, Thailand, Nigeria, Mexico, and Indonesia?
Again the voice of the “experts”: “Then countries must “restructure” their debts kicking them forwards 20, 40 or more years into the future, so that your great, great, great grandchildren can continue paying them”. Oh, I see!
Read More: asalbuchi.com.ar
Today, the vast bulk of Greece’s debt is held through the EU and IMF bailout funds, with some Greek bonds on the ECB’s books. The threesome is in no mood to take a haircut on their Greek debt and have said so.
Greece’s slow recovery and crushing debt load are propelling the country toward its third bailout. That’s the conventional view. Jeroen Dijsselbloem, president of the euro zone’s finance ministers’ group, said as much the other day and Greece’s Finance Minister, Yannis Stournaras, is lobbying hard for a second debt-crunching exercise.
But what if Greece’s big fat debt – equivalent to 174 per cent of gross domestic product – is much slimmer than it appears? What if it’s not really debt at all? Indeed, the series of maturity extensions and interest rate reductions are giving the debt a rather grant-like flavour. This is Europe’s dirty little secret, one that is designed to give taxpayers in Europe’s wealthy north the impression that the loans their governments have guaranteed will be paid back in full as Greece, through austerity and reform, goes through a punishing economic fix-it exercise.
Please join the Global Dialogue and research the national debt or local government debt near you. I am sure you will have some surprises and certainly able to forecast rising taxes in your community.
Aren’t you ready for a real solution that the institutions refuse to discuss?
He’s hit that one right on the head.
La Belle Verte (The Green Beautiful)
A reminder for those who may not have seen this 1 minute video clip.
French language comedy, please pause the dialogue and read the English translations. The civil war had the most effective tool of mass boycotts.
When citizens form a effective grassroots leaderless movement
… to en masse BOYCOTT & GENERAL STRIKE all government, corporate services, products, jobs and commerce.
Reblogged this on Spartan of Truth.
I Blame The Central Banks
I Blame The Central Banks
For the coming bond bubble disaster
by Chris Martenson
The current bubbles in financial assets – in equities and bonds of all grades and quality — raging in every major market across the globe are no accident.
They are a deliberate creation. The intentional results of policy.
Therefore, when they burst, we shouldn’t regard the resulting damage as some freak act of nature or other such outcome outside of our control. To reiterate, the carnage will be the very predictable result of some terribly shortsighted decision-making and defective logic.
The Root of Evil
Blame can and should be laid where it belongs: with the central banks.
They were the “experts” who decided to confront the excesses of decades past (which saw borrowing running at roughly 2x the rate of real economic growth) with even easier monetary policies designed to spur even more borrowing.
Rather than take stock of the simple fact that nobody can forever borrow at a faster rate than their income is growing (no matter how large that entity may be), the Fed, the ECB, the BoJ and the BoE have conveniently overlooked that simple fact and then boldly claimed that the cure is identical to the disease. If the problem is debt then the solution is even more debt.
If the Fed, et al. were doctors, they would prescribe alcohol to the alcoholic. They would administer more lead to the lead-poisoned patient. They would call for more water to put in the pool where a drowning individual is floundering.
The bottom line is that the Fed and its ilk made the disastrous decisions that gave us the first two burst bubbles of the new millennium. And the wonder of it all is that, instead of being met at the gates with torches and pitchforks and held to account for their errors, they have instead been granted even greater powers, less oversight, and practically zero blame.
And now they’ve given us a third and, I suspect, final bubble. By which I mean I think the effects of this bursting bubble will be so horrendous that a hundred years might pass before people will again be in the mood to speculate on fantasy wealth.
My hope is that, when this third bubble pops, the figurative (and, perhaps, literal?) torches and pitchforks come out. Finally forcing the central banks to answer to the public for their grievously poor decisions.
And yes, the investing public also bears a portion of the responsibility for playing along with the central banks. For years, some have consoled themselves with stories about how This Time Is Different, and many have ignored many obvious warning signs as they’ve enjoyed stock market and bond gains fueled by seemingly limitless liquidity.
But in the end, it’s the central banks that set the tempo and the melody at the dance hall. When they flood the world with liquidity and set interest rates to 0%, they enforce a Hobbesian choice: either play along in the risk markets, or sit in cash earning less than nothing as inflation eats away at your purchasing power.
The central banks are entirely to blame for mis-pricing money and that is the fundamental error that drives every bubble and betrays capital into hopeless investments.
So let’s all remember to place blame where it is due when the bubble bursts. We shouldn’t act surprised because there’s really no honor in being caught unawares by something so obvious.
The Biggest Bubble(s) Of All Time
We’ve covered the equity bubble in the past, but today we’re going to cover the bond bubbles (yes, plural) because the current excess in the bond market is the granddaddy of them all, and is far larger than anything ever recorded in history by a very wide margin.
But for the sake of completeness, regarding equities, if you ever wanted to get the willies about the stock market in a single chart, I think this one from Doug Short of Advisor Perspectives which plots the relationship between equity prices and margin debt is about as good as it gets:
Margin debt is simply money borrowed to buy equities. Typically speaking, an average investor with $100,000 in an account can buy up to $150,000 worth of stock. Margin debt is fuel to a rising market and a lead anchor for a falling market.
Yes, perhaps this time is different, or perhaps it’s exactly the same with speculators borrowing more and more as stock prices rise, sure in the knowledge that they will be smart enough to get out of the way of a falling market (this time).
But, enough of material we’ve covered here recently. http://www.peakprosperity.com/blog/86001/approaching-inevitable-market-reversal
Back to bonds.
When the bond bubble bursts, so much that people believe to be true will be revealed to be obvious and distressingly ordinary illusions.
When there’s simply too much debt, in the period leading up to a debt bubble’s bursting, everyone is counting on getting paid his or her money back, both the interest and the principal. After the bubble bursts, it’s plainly obvious that no such thing will be happening.
As is always the case with bubbles (of any sort), the only important question that needs to be answered is: Who will take the losses?
One simple answer to that question is: Whoever is holding the bonds when the bubble bursts.
Bubbles are structured like a game of hot potato. When the timer finally dings, the person holding the potato loses. It doesn’t matter one whit whether the ‘hot potato’ was a tulip bulb, swamp land, a house in Las Vegas, or a paper financial security.
The really striking part about the global bond markets today is that the potatoes have never been more numerous, or hotter.
I suppose this would be a good time to revisit how Einstein defined insanity: trying the same thing over and over again and expecting different results.
Unfortunately for those hoping for a different outcome, history is 100% consistent on the matter: Bubbles always burst. And when they do, what people thought was fabulous wealth is proven illusory, and it simply vanishes.
Not that this clear historical record is keeping humans from trying to cheat the odds.
Given that the Fed has engineered three increasingly larger bubbles within an unprecedentedly-short fifteen-year time span, perhaps we shouldn’t persecute them. After all, they may easily be able to plead ‘not guilty’ by reason of insanity.
$100 trillion – is that a lot?
We frequently throw around big numbers in our analysis. We even try to explain them in terms that help us mentally grasp an appreciation of their enormity (watch the video How Much Is A Trillion?, as an example). http://www.peakprosperity.com/video/85844/crash-course-chapter-12-how-much-trillion
But the size of the bond market across the developed world defies even our best efforts.
After all, if $1 trillion dollars is a stack of $1,000 bills 68 miles high, then I guess $100 trillion would be a stack 6,800 miles high:
Global Debt Exceeds $100 Trillion as Governments Binge, BIS Says
Mar 9, 2014
The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates, according to the Bank for International Settlements.
The $30 trillion increase from $70 trillion between mid-2007 and mid-2013 compares with a $3.86 trillion decline in the value of equities to $53.8 trillion in the same period, according to data compiled by Bloomberg.
The jump in debt as measured by the Basel, Switzerland-based BIS in its quarterly review is almost twice the U.S.’s gross domestic product.
Note that global debt climbed by $30 trillion between 2007 and 2013, a 42% increase while global equities actually declined a few trillion (to $54 trillion), yielding a global debt-to-equity ratio of almost 2. [Note: Global equities are now valued at $66 trillion http://www.bloomberg.com/news/2014-08-27/equities-reach-record-66-trillion-as-s-p-500-hits-2-000.html
and are pouring on almost $1 trillion/week lately. Of course, they have a habit of going down, from time to time, even more quickly than they rise. Something that is easy to forget in today’s environment]
So, a 42% increase in just 6 years. Did global GDP advance by 42% during this same period? No. Not even close.
Did private companies borrow all that money planning to plow back into productive enterprises? Nope. Companies borrowed relatively little of $30 trillion, and even then, they mainly used that newly-borrowed money to buy back shares and/or stash it on their balance sheets.
Who did borrow all that money then?
Why, nations did. Sovereign entities that were desperate to keep things afloat and borrow heavily (because private concerns weren’t able to take on new debt fast enough).
Why? Because the world’s debt pile must keep expanding. That’s the world we live in today. If the pile should start to contract, the game of Who Will Take The Losses? begins. And governments know (sometimes consciously, sometimes subconsciously) that the debt bubble has become so monstrous, and so interconnected globally, that even a moderate correction will wipe out so many players that the world financial system will be brought to its knees. Or worse.
In Part 2: Something Very Wicked This Way Comes, http://www.peakprosperity.com/insider/86891/something-very-wicked-way-comes
we provide great detail into why sovereign and corporate (both high-grade and junk) debt markets simply and mathematically must contract. Current prices are so historically divorced from fundamentals at this stage that this ‘prediction’ is about as elementary as counting on gravity to bring a tossed stone back to earth.
Given the excesses of the stock and bond markets I am increasingly concerned that this next bubble burst will be far worse than any that has yet come since I’ve been alive. Countries will fail financially and economically, political upheaval will follow, fortunes and dreams will be shattered, and lots of people will lose their jobs.
In short, lots of things will break and cease to function as the greatest wealth transfer in all of history plays out.
Click here to read Part 2 http://www.peakprosperity.com/insider/86891/something-very-wicked-way-comes
of this report (free executive summary, enrollment required for full access)
Central Bankers Will Attack ISIS and The Assad Regime
Posted 27 Aug 2014
Nearly a dozen nations near default.
Argentina Refuses To Submit To Financial Terrorists
There’s news rumbling from Argentina, and this concerns the ongoing LIBOR (London Interbank Offered Rate) rigging scandal. Check this one out:
Dutch Rabobank Gets Argentine LIBOR Fraud Claim: http://www.forbes.com/sites/marcelmichelson/2014/08/08/dutch-rabobank-gets-argentinian-libor-fraud-claim/
Now, why am I bothering you with this story. After all, the LIBOR scandal seems straighforward enough: great big greedy fraudulent banks were finally caught doing exactly what everyone suspected them of doing all along: committing fraud, rigging markets and interest rates for their own benefit, and in general, just being parasites on real producers and economies. (And by the way, this as a personal note to some of the Great Big Greedy Fraudulent and Criminal Banks In Great Britain mentioned in the article: I do not own, nor want, any credit card, period, from any bank, and I especially do not want one from yours. What!? You think I’m stupid? I’d rather deal with Don Corleone than you. He at least is honest about his criminality. You’re not. But more about that in a future blog when I plan to share my letter to you for all to read.)
Anyway, back to sunny Buenos Aires and Argentina.
You’ll recall that that nation has been reluctant to “pay up” on some sovereign bonds currently held by an American hedge fund investor, who insists on squeezing every last pound of flesh out of that country, and Argentina, which has wanted to renegotiate the claims, is being told no. Now note the following statement in the article:
Now this raises some interesting questions and implications, for it implies first of all that a series of Argentine sovereign securities were issued in such a way as to be tied to the LIBOR rate, which in turn was fraudulently fixed. And this in turn raises the issue of how many series of Argentine sovereign securities were so issued and tied to that rate. More interestingly, the LIBOR scandal raises the prospect of deliberate “rate fixing” on an even wider scale, which might tie several nations’ sovereign securities to the practice of interest rate fixing and manipulation.
For Argentina, this might indeed prove to be the international out it is seeking, a way out of the IMF-Western hedge fund financial domination of that country, and into the BRICSA bloc, which President Kirchner has expressed an interest in pursuing. One might envision a scenario where she successfully negotiates an arrangement with the BRICSA bloc to redeem those bonds held by the American Hedge fund (I have a vision of that CEO talking to messengers from President Putin who are members of the Russian mafia, and who make him an offer he can’t refuse). Whatever else, one can expect that Argentina will simply be the first country lining up to go after those big greedy fraudulent criminal banks… more will follow, and Argentina is not likely to let the matter of LIBOR lawsuits remain simply with a Dutch bank either….
FT still can only hint at market rigging by central banks
11:49p ET Wednesday, August 27, 2014
Dear Friend of GATA and Gold:
In the conclusion of a series of articles about “asset bubbles,” today’s Financial Times shows that it is fully aware of market manipulation by central banks but still can’t bring itself to put those words together in the same sentence, nor to mention gold in that context.
From today’s article, written by the FT’s Ralph Atkins:
“Investors have seen central bankers suppressing market volatility; the VIX index of expected U.S. share price movements, known as the ‘Wall Street fear gauge,’ is at a seven-year low. …
“With their massively expanded balance sheets, central banks have come to dominate many markets, replacing the private sector. …”
Too bad that the series ends short of any specification of the most sensitive market central banks are dominating. But mainstream financial journalism in the West can go only so far. Apparently mere hints are supposed to be considered heroic.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Central Bankers Face ‘Confidence Bubble’
By Ralph Atkins Financial Times, London
Wednesday, August 27, 2014