Jul 262013
 

And are ultimately destroying it

In every era, there are certain people and institutions that are held in the highest public regard as they embody the prevailing values of society. Not that long ago, Albert Einstein was a major public figure and was widely revered. Can you name a scientist that commands a similar presence today?

Today, some of the most celebrated individuals and institutions are ensconced within the financial industry; in banks, hedge funds, and private equity firms. Which is odd because none of these firms or individuals actually make anything, which society might point to as additive to our living standards. Instead, these financial magicians harvest value from the rest of society that has to work hard to produce real things of real value.

While the work they do is quite sophisticated and takes a lot of skill, very few of these firms direct capital to new efforts, new products, and new innovations. Instead they either trade in the secondary markets for equities, bonds, derivatives, and the like, which perform the 'service' of moving paper from one location to another while generating 'profits.' Or, in the case of banks, they create money out of thin air and lend it out at interest of course.

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May 242013
 

Concentrated power and wealth are intrinsically sociopathological by their very nature.

I have long spoken of the dangers inherent to centralization of power and the extreme concentrations of wealth centralization inevitably creates.

The Master Narrative Nobody Dares Admit: Centralization Has Failed (June 21, 2012)
The Solution to Concentrated Power: Decentralize, Diffuse and Devolve Power (June 22, 2012)
To Fix Healthcare, Let 100 Solutions Bloom (February 26, 2013)

Longtime contributor C.D. recently highlighted another danger of centralization:sociopaths/psychopaths excel in organizations that centralize power, and their ability to flatter, browbeat and manipulate others greases their climb to the top.

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May 172013
 

It all starts with the Arab oil embargo of 1973-74.

The Arab members of OPEC proclaimed an oil embargo to punish the U.S. for aiding Israel. This action quadrupled the price of oil, roiling commodity markets, equities, bonds, and foreign exchange markets.

Energy prices soared. Speculation in oil exploration and production became feverish.

There was money everywhere.

Oil exporters in the Arab states were depositing their windfall “petrodollars” into big U.S. banks, who were in turn lending the money out as fast as they could.

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May 152013
 

By the start of the 1960s, banking in America was in a state of flux.

Boundaries were being blurred – especially those separating “commercial banks” and “investment banks” under Depression-era Glass-Steagall parameters. The banking landscape was shifting. In fact, it was about to go volcanic.

The Truman Administration had championed the break-up of bank cartel arrangements, whereby a powerful coterie of commercial-bank bond underwriters controlled how corporations financed debt and who got to distribute bond offerings. Subsequent regulatory changes (requiring bidding for underwriting assignments) broke up the “Gentleman Bankers Code,” which had been code for cartel.

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May 132013
 

Our last chapter was about how the U.S. Federal Reserve was created and why. But it ended with an extreme example of how the universal central banking model works today.

Cyprus.

As another domino threatened the house of cards holding up European banks, more money had to be pumped into Cypriot banks so their doors didn’t close and rapid contagion wouldn’t implode all of Europe, and then the world.

Only this time was different.

The European Central Bank (ECB) reached straight into Cypriot bank depositors’ pockets and stole about $6 billion from them. The “how” isn’t important. It’s a simple equation, as revealed in Part V. Governments are the backstoppers of central banks; that’s where their authority ultimately comes from.

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Apr 292013
 

The Illuminati were amateurs. The second huge financial scandal of the year reveals the real international conspiracy: There's no price the big banks can't fix

Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world's largest banks may be fixing the prices of, well, just about everything.

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Apr 082013
 

The Specter of Things to Come

The road to ruin is on plain display and the playbook is easily seen at this juncture. Let’s take a look at how that playbook will unfold. Contrary to popular outrage of the SOLUTION being IMPOSED it is the correct one once the insured depositors where PROTECTED. In this edition the elites suffered FIRST followed by the private sector depositors who foolishly believed false BALANCE sheets which were POLITICALLY CORRECT but PRACTICALLY incorrect fictions approved by fiduciarily (regulations and regulators allowed ONGOING insolvent operations rather than protect the public by ending and prohibiting them) challenged governments (work for the banks and crony capitalists not for the public at large).

The pecking order of the losses was the CORRECT one: Shareholders FIRST, bondholder’s second and lastly uninsured depositors. Have we seen this anytime since the crisis began? It is clear that this is and what must be what’s done in the future. But for the countries in question to RECOVER they must RECOVER the ability to PRINT and devalue their currency to competitiveness.

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Apr 012013
 

Something-for-NOTHING Societies!

The developed world has now become a fully operational Something-for-Nothing society. Once a Something-for-Nothing psychology has been fully implemented the majority of its citizens have become the functional equivalent of LOCUSTS!

Unable and unwilling ( they no longer have the skills to make the wages they believe they are entitled to ) to produce more than they consume and support themselves they set off the consume those that do to FEED on and SUPPORT themselves. The TAKERS or WEALTH EAT the MAKERS of WEALTH, Cannibalism of the worst sort.

Once they have achieved voting majorities the economies they inhabit are much like a farmer’s field. They eat everything down to the roots and next years seed corn. Nothing is left to create future wealth and total destruction of production of wealth is the result. “Something for Nothing” societies are a PRODUCT of a number of factors which combine to destroy the lives and future prospects of the majority of its citizens. Creating desperate mobs of citizens easily manipulated by FEAR. It DRIVES the final descent into economic and societal COLLAPSE.

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Mar 292013
 

Chapter Four ended as a cartel of powerful bankers gathered on Jekyll Island to develop a plan for creating a central banking system which would work for their interests.

John Pierpont Morgan was no stranger to how central banks worked. He had witnessed their power firsthand.

Junius S. Morgan, Pierpont’s father, became a partner at George Peabody and Company in 1854 and moved to London – where the American-born Peabody had been bankrolled by Baron Nathan Mayer Rothschild. At the time, the rich and powerful Rothschilds exerted extraordinary control over the Bank of England.

George Peabody and Company rode the mania for railroad shares, whose prices in 1857 were benefiting from the Crimean War’s impact on rising grain prices, which Western railroads transported in huge quantities.

But the good times didn’t last.

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Mar 272013
 

Chapter Three ended with the rise of J.P. Morgan and how he used chronic boom and bust cycles to his own great advantage. That brings us to the Panic of 1907.

The Panic of 1907 was a seminal event in the history of banking. It spawned the Federal Reserve System – but not immediately. There would be a long cloak-and-dagger affair before the Federal Reserve Act was signed into law – while Americans were distracted – two days before Christmas, on December 23, 1913.

How Congress was duped by many of its own, and how the public was blindsided into believing their government was creating a safer banking system is a testament to the power of private banks to run and, for their own profit, ruin America.

Here’s how it all happened.

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