Debt Crisis? What Debt Crisis?

Ever wondered what 114.5 Trillion looks like? This puts it into perspective:

$100 - Most counterfeited money denomination in the world. Keeps the world moving.

$10,000 - Enough for a great vacation or to buy a used car. Approximately one year of work for the average human on earth.

The Money Masters Behind the Global Debt Crisis

In the US, we see untold millions suffering from the impact of mass foreclosures and unemployment; in Greece, Spain, Portugal, Ireland, and Italy, stringent austerity measures are imposed upon the whole population; all coupled with major banking collapses in Iceland, the UK and the US, and indecent bail-outs of “too-big-to-fail” bankers (Newspeak for too powerful to fail).

No doubt, the bulk of the responsibility for these debacles falls squarely on the shoulders of caretaker governments in these countries that are subordinated to Money Power interests and objectives. In country after country, that comes together with embedded corruption, particularly evident today in the UK, Italy and the US.

As we assess some of the key components of today’s Global Financial, Currency and Banking Model in this article, readers will hopefully get a better understanding as to why we are all in such a crisis, and that it will tend to get much worse in the months and years to come.

The Terminal Stages of the US Dollar

This week I'm celebrating the anniversary of the greatest heist in recorded history; exactly 40 years ago yesterday, President Nixon severed the dollar’s ties to gold forever.  It was a government game so the politicians could easily pay off their debts with “cheaper dollars” for the foreseeable future.  In reality, this one decision effectively stole all our dollars’ value for decades to come. And you and I are the ones still paying for this mistake. Not the rich, us the ordinary middle class people.  Strangely this decision created the $4 trillion Forex market and eventually sent gold above $1,800 an ounce this past week.  Gold was $35 and ounce when Nixon made this decision.

You and I - (We) are now in the terminal stages of the worlds most gigantic pyramid scheme of all time: The US Dollar. It is set to vaporize the assets of the average citizen and level the life style of North Americians to a level of lifestyle more similar to the rest of the world (think Asia, South America and Europe).  So now is thew time to protect what's left of your nest-egg, before the dollar collapses fully, rendering your dollar-denominated assets almost worthless.

 

US to Default on Credit Aug. 2 - Even if Solution Found Today

Yesterday, Moody's and Standard & Poor's both threatened to downgrade the credit rating of the United States of America. The threat of an official downgrade resonates with the real-time unofficial downgrade that is already underway in the market for credit default swaps (CDS).

(To review: CDS are a kind of "default insurance." The buyer of a CDS is buying insurance against default by a specific issuer of debt, whether that be a company or a country. The greater the apparent likelihood of a default, the higher the price insurance. That's why the price of a Greek CDS is 1,000 times greater than the price of a Norwegian CDS.)

This extreme pricing difference is to be expected. In absolute numbers, the national annual deficits of Greece and Norway are identical. But while the Greeks are running a budget deficit equal to about 14% of its GDP, the Norwegians are running a budget surplus equal to about 14% of GDP. Greece might default tomorrow. Norway is unlikely to default any time this century... or at least not until its North Sea oil runs out.

The Peak Oil Myth

Peak oil, along with Global Warming, or Climate Change, as it has been amended by way of hedge betting on the part of the environmentalist movement, is one of the main worries we mere mortals face today. Add to that all the impending Pandemics and the financial collapse of the world economy, things are looking grim. I do agree with the environmentalists on one thing, climate definitely changes and does so with monotonous regularity.

We are told that we have sucked all the oil there is to suck out of the nipples of our mother planet so any further industrialization of the third world and the demise of our own industrial base, which is well on it’s way, can only be dealt with using unpleasant, but necessary, draconian methods to try and preserve the little we have left of that energy giving nectar we sometimes call “Black Gold”. In an attempt to discourage the use of our Black Gold the environmentalists have promoted a global tax on Co2 emissions, now gaining increasing implementation which is, in effect, a charge for every man woman and child on the planet for the air we breathe. Co2, they claim, is a green house gas that is heating up our planet to disastrous levels and will result in all of us boiling in our own juices if left unchecked. This release of Co2 gas into our environment is a direct result of the unfettered use of fossil fuels, mostly oil. The science says that Co2 is driving the planets weather systems resulting in unprecedented warming. Elementary science would beg to differ given that it is warming that creates more Co2 and not the other way around.

You Owe a Trillion

The other day I heard someone explain what a Trillion is. What he said was imagine that someone borrowed one hundred dollars ($100.00) and said I will pay you back in 10,000 seconds they would be talking about just less than 3 hours. If they said they would pay you back in a million seconds that would be about 12 days. So we are talking about a short-term loan in both cases.

Now here is where it gets interesting. If they said they would pay you back in one billion seconds that would be about 32 years, about the time you might expect to be required to pay off a home mortgage. However, if they said they would pay you back in one trillion seconds you are going to have to wait around 32,000 years!

So if someone says that you owe them a trillion dollars what they are really telling you is that you and your children and your children’s children are their slaves forever! You see, this is their way of showing us that it’s really not about the money. It is about the power they have over you if you believe you really do owe this debt.

Now the questions we all need to ask ourselves are who are these people that are telling us we owe trillions. Are these people our “friends” that we borrowed money from? But most importantly, do we believe we really owe them?

~Michael Jenkins

Cheap Oil Everywhere

Americans need to understand that the world’s oil is not in limited supply. The lie is found in the term “fossil fuels”. Oil and gas are not the result of decaying wildlife and prehistoric animals. Rather, oil and gas are the result of natural geological processes within the earth. Have you ever considered if it is physically possible for the remains of animals and plant-life to be drawn by gravity to the depths necessary for our oil supplies to have been originated in this fashion? Many of these wells are far deeper than you might imagine. Furthermore, international oil corporations are funding the green movement. One might ask, “Why would oil producers support the green agenda?”. The reason is simple. The green agenda perpetuates the myth that our world’s oil supply is limited. It allows oil companies to hide behind this myth and gives them a pretense to charge prices based on artificial scarcity. Without this dynamic, profits for oil would suffer and the ability to manage the world’s oil under a limited cartel (OPEC) would become nearly impossible.

More importantly, these myths are used to justify the sacrifice of the lives of our children on Middle East sand dunes. Please do your homework and spread this message. The lives of our children and your standard of living are at stake. The “On Topic” link below shows recent scientific revelations which support the idea of abiotic oil. It includes the research work done by Vladimir Kutcherov, Anton Kolesnikov, and Alexander Goncharov which was recently published in the scientific journal Nature Geoscience.

On Topic: http://www.viewzone.com/abioticoilx.html

~Federal Expression

Interest Rates: The Price of Money

What exactly are interest rates? How are they determined and what is their effect upon the economy? In short, interest rates are the price of money. The Austrian school of economics has a simple explanation that seeks to answer these questions.


The Austrian School Explanation
The Austrians explain that there are two basic types of economic ventures which co-exist at any one time. There is low-order production and higher-order production. Low-order production involves the manufacture of short-term ready supply items. Items that the public demand now. For instance, peanut butter, bread, milk and the like. These items are needed immediately and consumers are ready to purchase now. High-order production involves long-term projects that seek to produce goods for sale at a later time. Most building projects, farm equipment, labor-saving machinery and like tools would fall into this category.

Now, all production requires capital. Capital could be machinery or it could be laborers or cash. In the case of cash, most high-order production relies on loans and the interest rates for loans will tend to dictate when such ventures will be initiated. In a free market, interest rates fall when consumers choose to save rather than spend. This is so because in the aggregate the availability or supply of cash is increased and as an incentive to move that cash out in the form of loans to producers the interest rate drops.

Where to Buy American Gasoline and Where Not to Buy

Are you aware that the Saudis are boycotting American products? In addition, they are gouging us on oil prices. Shouldn't we return the favor? Can't we take control of our own destiny and let these giant oil importers know who REALLY generates their profits, their livings? How about leaving American Dollars in America and reduce the import/export deficit? An appealing remedy might be to boycott their GAS. Every time you fill up your car you can avoid putting more money into the coffers of Saudi Arabia . Just purchase gas from companies that don't import their oil from the Saudis. Nothing is more frustrating than the feeling that every time I fill up my tank, I'm sending my money to people who I get the impression want me, my family and my friends dead.