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The American Empire in a Changing World



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Friday, December 28, 2012

Quotes and Comments

 Some of our favorite quotes and comments from around the web.......all relating to the dollar and the banking system............ENJOY
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From JR, and the ZeroHedge comments section...........read more
 
''The bankers own the currency, make as much as they want, give it to whomever they want, start industries that they and their friends want, and swoop down and stop any business they want…

By using a debt-based monetary system, the bankers have dictated that all functions of the society are related to the use of their currency – your job, your education, your family’s future, your provisions for old age ---all depend on their currency. In the old days, it depended primarily on your labor and the decisions you made regarding your life.

The bankers use control of America’s money for their own personal power. It’s so primitive: everything we the people do, we must use their paper to do it.

It’s not banking, per se, it’s the criminal families who control the money and decide who gets it. They are not bankers; they are crass criminals who have designed this system to produce for themselves wealth and power. They are only pretending to be civil custodians of the currency.

What more evidence do we need? As Tyler puts it, ”Nuf said.”

Unfortunately for the banking elite, they are destroying their own future by co-opting too many second stage criminals taking advantage of the system – and a major group of those criminals are the politicians.''

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a comment from Timothy from a (Gary North Article) mises.org................read more

''Fractional reserve banking is a dishonest system. It is responsible for (the cause of) almost every banking panic ever. It is dishonest, and it also causes rampant overspeculation and malinvestment. Why is that you ask? Because no one spends other people's money as carefully as they spend their own. How can you possibly, loan out money to one person and leave that same money in another persons account? According to everything I have ever known about the physical universe, there is no magic. When you loan out money from an account, it is gone until it is payed back. To pretend it is still in an account after it has been loaned to someone else is fraud and should not be allowed. In an honest system you would have to agree to allow the use of the money deposited for a certain amount of time in order for the bank to loan it out. Then they would have to split the profits with you for the permission of using the money for that time.''

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FOA....................... "My friend, debt is the very essence of fiat. As debt defaults, fiat is destroyed. This is where all these deflationists get their direction. Not seeing that hyperinflation is the process of saving debt at all costs, even buying it outright for cash. Deflation is impossible in today's dollar terms because policy will allow the printing of cash, if necessary, to cover every last bit of debt and dumping it on your front lawn! (smile) Worthless dollars, of course, but no deflation in dollar terms! (bigger smile)"
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Richard Russell......................read more

''They are the secretive bankers who created the Federal Reserve. The Fed was created by bankers and for bankers. As recently announced by Ben Bernanke, the Fed will buy $40 billion a month of mortgage-backed securities from the banks. In this way, the Fed will take these junk mortgage-backed securities from the banks and in return give the banks dollars. Thus, they will reliquify the banks with acceptable money, while taking these junk mortgage-backed securities off the hands of the banks.''

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from 'i fly me', Zerohedge comment.........read more

......''Fiat isn't the problem.  Saving your excess production in the same thing being fractionalized and loaned is the problem.''

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from nuinut and a zerohedge comment.................read more

''The euro is not freegold; the euro is a currency compatible with freegold.

Freegold is simply the absence of gold denominated credit (aka paper gold) in the market.

The euro is compatible with this because (as you can easily see if you care to look at this week's ECB consolidated financial statement) market price gold values the euro, and the ECB (issuer of the euro) are publicly acknowledging this. This means the users of the euro value the euro, not the ECB. If the users of the euro think it is overvalued, they will buy gold with it, and in doing so bid up the price of gold in euros. Pretty straightforward.''


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From PUD, a Zerohedge comment...............read more

''It's all moot in a debt as money system when the cost of debt carry meets peak debt. The singular problem is debt based money and the requirement it has for perpetual compounding exponential growth. It's all math and has nothing what so ever to do with policy. This is why there is no fix.''

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Ben Bernanke.....................''As a scholar of the Great Depression, I honestly believe that September and October of 2008 was the worst financial crisis in global history, including the Great Depression …Out of maybe the 13 of the most important financial institutions in the United States, 12 were at risk of failure within a period of a week or two.''.........................from REPO Watch...............read more

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From Charles Hugh Smith via a ZeroHedge article.....................read more

''In my analysis, this is the direct consequence of the supremacy of a consumerism that is dependent on financialization: an economy dependent on debt-fueled consumption to power its "endless growth" is one that will necessarily implode from its internal contradictions: debt and leverage eventually exceed the carrying capacity of the collateral and the national income, and the narcissism of consumerism leads to social recession, a crippling state of "suspended animation" adolescence and great personal frustration and unhappiness.

The ultimate contradiction in this debt-consumption version of capitalism is this: how can an economy have "endless expansion and growth" when pay and opportunities for secure, high-paying jobs are both relentlessly declining? It cannot. Financialization, consumerist narcissism and the end of growth are inextricably linked.''

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The Triffin Dilemma.........

From Richard Mills and The Market Oracle ........................read more
 

''When a national currency also serves as an international reserve currency conflicts between a country's national monetary policy and its global monetary policy will arise.

"In October of 1959, a Yale professor sat in front of Congress' Joint Economic Committee and calmly announced that the Bretton Woods system was doomed. The dollar could not survive as the world's reserve currency without requiring the United States to run ever-growing deficits. This dismal scientist was Belgium-born Robert Triffin, and he was right. The Bretton Woods system collapsed in 1971, and today the dollar's role as the reserve currency has the United States running the largest current account deficit in the world.

By "agreeing" to have its currency used as a reserve currency, a country pins its hands behind its back. In order to keep the global economy chugging along, it may have to inject large amounts of currency into circulation, driving up inflation at home. The more popular the reserve currency is relative to other currencies, the higher its exchange rate and the less competitive domestic exporting industries become. This causes a trade deficit for the currency-issuing country, but makes the world happy. If the reserve currency country instead decides to focus on domestic monetary policy by not issuing more currency then the world is unhappy.

Becoming a reserve currency presents countries with a paradox. They want the "interest-free" loan generated by selling currency to foreign governments, and the ability to raise capital quickly, because of high demand for reserve currency-denominated bonds. At the same time they want to be able to use capital and monetary policy to ensure that domestic industries are competitive in the world market, and to make sure that the domestic economy is healthy and not running large trade deficits.''


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From GoldNewsBullionVault................read more 

...............''the US runs a trade deficit. It has done for decades. US trade deficits supply global liquidity. Excess US Dollars flow to Middle Eastern oil producers, Chinese widget manufacturers and Japanese car makers.

What do you think would happen if the US suddenly became competitive and financially prudent? What if it started producing trade surpluses? It would be disastrous for the global economy. Global liquidity would dry up...there would be a massive credit crunch.

So the system depends on US profligacy. The US may enjoy an 'exorbitant privilege' in the words of former French President Charles De Gaulle , but it's one that has benefitted - and we use that term loosely - the world in terms of delivering debt-based economic growth.

But for how much longer? Triffin identified the problem way back in the 1960s. Since then nothing has changed. The dilemma is now so big that it can't be undone or reversed. The dual role of the US Dollar as national and international currency is no longer viable.''

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From FOFOA...............read more

 “Funny” quote from Casey Research.

"The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title." 


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From Tyler Durden and ZeroHedge...........read more

''And hard evidence, or better yet a paper trail of inconsistencies, is absolutely paramount when juxtaposing the two most powerful forces of our times: i) the central banking-led status quo (which is de facto the banker-led oligarchy whose primary purpose in the past several centuries has been to accumulate as much as possible of the hard asset-based fruits of people's labor, who toil in exchange for "money" created out of thin air - a process which could be described as not quite voluntary slavery, but the phrase would certainly suffice), and ii) "everyone else", especially when "everyone else" still believes in the supremacy of democratic forces, accountability, and an impartial legal system (three pillars of modern society which over the past 4 years we have experienced time and again have been nothing but mirages).''

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From Chris Martenson Blog via Turd Ferguson...........read more

''The vast bulk of the assets in our financial system are actually forms of debt.  One person’s debt is another person’s asset.  I owe you and you hold the debt note.  The banking system in particular holds most of the world’s debts as assets on its books.  Your mortgage liability is their asset. 
Similarly, money market funds that invest your cash in corporate and sovereign debt, insurance companies, endowments, and pension funds all do this, too.
Just considering the debt side of this story, what would happen if the world’s debts suddenly became worth less, or even 'worthless'?  Every entity in the list above would suffer losses and possibly bankruptcy.  Without asset inflation, it would all come crashing down:
Municipal pensions would be ruined and unable to meet their obligations
State pensions: ditto
Corporate pensions: ditto, again
Money market funds would 'break the buck'
Endowments would get eviscerated
Insurance companies would go bankrupt
Annuities would fail
And those are just some of the immediate financial impacts of a deflationary spiral.  The political and social impacts would be just as great, with careers ruined and unpredictable national directions taken.
So keeping the debt and equity markets well and truly propped up is right at the top of the list of ‘things to do’ for every central bank on the planet.
The problem with the story, as I am sure you are aware, is that the whole system of money and debt simply has to keep expanding exponentially for all of this to work out.
Nobody in any position of power, at the Fed or elsewhere, has yet explained how infinite exponential expansion will be achieved.''
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From SPYKERSPEED and ZeroHedge...................read more

''While I love gold, and I think it will never go away as a store of value, Bitcoin is a superior money.  It has several advantages over gold, including the fact it's instantly transmitable over distances (internet), impossible to fake (unlike gold which can be filled with tungsten), and most importantly it is impossible to steal with physical force.  Bitcoin is protected by powerful 256 bit encryption.  So a government can't simply break into your house and get your bitcoin like they can your gold.  Other advantages of Bitcoin:  it's extremely divisible (each bitcoin can be broken into 100 million parts, unlike a dollar which can only be broken into cents), it is impossible for any government to shut down the Bitcoin network because it's entirely decentralized P2P software, and there will only be 21,000,000 bitcoins - ever.  The software makes it impossible to add more coins, and anyone who attempts to do this will be rejected by the network.''

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from a comment (fredquimby) and a ZeroHedge article.............read more

''My fav FOFOAism haha:
"There are four key aspects to Freegold. There are also many more, but these four are key. That's not to say they are all necessary. They are not. But it is to say that in order to understand Freegold you must at least understand the significance of these conditions:
1. The end of the dollar standard (the end of its timeline as the main global reserve currency)
2. The end of parity between paper gold price discovery and physical gold price discovery
3. The Euro-Freegold concept/project, (at least) 31 years in the making
4. The flow of oil "

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a comment from 'pud' on a zerohedge article............read more

''Money as debt. The very fundamental nature of credit money is the root cause of everything. This is a fact which is totally absent from the thinking of everyone. All money is debt. Debt carries interest. Interest requires more debt money creation...it compounds...it goes exponential at some point of saturation. This is why things are as they are. Every other discussion from MMT to gold is a sidebar.''

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from 'Pat Fields' and SilverDoctors...........read more

 
''That’s bulls**t. The underlying problem isn’t the American banknote, per se. It’s the whole banknote scheme itself. While the deprivation and turpitude that it engenders has reached a zenith of blatant proportions here, because ‘modern’ American culture is more driven by determination than anything resembling enlightened intelligence, the root cause isn’t truly a bent toward criminality, so much as what influence ENGENDERS that tendency and propels it to a cresendo.

Do I have to explain this till I’m ‘blue in the face’? I will if I must! Bannknotes are created as principal at interest. In this phase, where ALL principal amounts can ONLY be settled in banknotes, that interest service compels commensurate NEW principal to be created … at then complex compounding interest. Each side of the equasion is an exponentially growing feedback loop inflating the other. Banknotes driving debt driving banknotes, vice-versa, ad infinitum!

Readers … now, just stop and clear all the rhetorical crap from your heads and think! Given that scheme, where ‘currency’ is constantly … and increasingly … depreciating from automatically induced inflation, while the general capability to service systemically ballooning debt is relentlessly bearing down on a society … WHAT THE HELL ELSE CAN BE EXPECTED BUT CRIMINAL DESPERATION!!!!

Now, NONE of this is said to diminish the capital crimes these people comit! The overwhelming body of evidence is that they’re guilty as charged! The central point I’m making is that we can’t be so emotionally diverted in ‘punishing the criminals’ that we completely ignore the core force that steers us ALL in that direction! Hanging every banker on the planet will accomplish NOTHING if this stupid banknote scheme is left to again corrupt yet ANOTHER generation around the world.
 
The banknote scheme should have been irrevokably forsaken and condemned in 1929. While there’s still barely enough remaining genuine purchase power left in these damnable stamps to warrant some kind of coin not so tiny it isn’t handy, we ought to make a general clamor around the world to end the DISEASE and not merely its SYMPTOMS.''
 
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