The Fed is not just "printing money into hyperinflation" ... it's worse than that. It's Hyperlending.

[ThePythonicCow]

This is just a quick note, to point out something we should notice.

It's been a meme in the Western gold-bug press for the last eight years that the Fed has been "printing money" in the trillions, to bail out the major Western banks. Gold bugs like to point to this as a reason that the US Dollar will hyperinflate to worthlessness, like Zimbabwe dollars or Weimar Republic deutschmarks, and that therefore the dollar price of gold will go to "infinity and beyond."

I don't think so.

It's worse that than.

The Fed hasn't been "printing" (or key stroking) dollars. They have been lending trillions of US Dollars into existence. That's how central banks work -- they don't (usually) just "print" money, rather they lend it, so that they can get you coming (with principle, fees, and interest payments) and going (with bankruptcy, foreclosure, repossession, austerity and privitization).

Simply hyperinflating a nations currency by running the printing presses non-stop only harms the value of current wealth saved in that currency. As we saw with Germany and the Weimar Republic's hyperinflation, a nation can completely recover from such abuse of its currency, in a few years.

What we're seeing is not hyperinflation. It's hyperlending, which is what I call here the lending of amounts overwhelmingly greater than what can reasonably be repaid.

Hyperlending sells a nation, its businesses, and its people into debt slavery for generations.

We Americans are having our children and grandchildren delivered into debt slavery.

===

On a separate but related point, a key part of what the Fed's been doing for the last eight years, during and since the 2008 crash, has been essentially exchanging the lower quality failed debt, such as from fraudulent mortgage backed securities, with higher quality debt ... US Treasuries.

That is a key part of what derivatives do. The banks essentially promise to pay holders of lower quality debt, securities or currencies with higher quality US Treasury debt, if the lower quality paper fails.

Derivatives are not a zero sum game. They are an amplification of the bonds of slavery being closed around the wrists of Americans.

The Fed is not printing money into the economy. Inflation in the US has been running a modest 1 to 8 percent (except for price increases driven by medical and college lending, two ways in which the hyperlending continues to the public at large in the US.)

Rather the Fed is lending Treasuries into existence, to backstop earlier failed low quality debt, using derivatives. The recipients of these lent Treasuries are the major issuers of the derivatives that provide this backstop -- a few major banks.

The resulting debt will generate wealth for the holders, that is extracted from the labor, the land, the sweat and the tears of our children and grandchildren, and their businesses and governments.

===

In two words: Debt slavery.

Four more words: For a long time.

[ponda]

In two words: Debt slavery.

Four more words: For a long time.

So do they want the system to crash ?

[ThePythonicCow]

So do they want the system to crash ?
Well ... the current world monetary system, based on the US Dollar as the primary reserve currency ... yes ... that crashes. It's too late to avoid that. That's how the elite go about their "rebuilding" projects, by first destroying the existing system.

But that's not the focus of my opening post :).

[ponda]

So do they want the system to crash ?
Well ... the current world monetary system, based on the US Dollar as the primary reserve currency ... yes ... that crashes. It's too late to avoid that. That's how the elite go about their "rebuilding" projects, by first destroying the existing system.

But that's not the focus of my opening post :).


I think that a transition from one world currency to another one brings with it a degree of uncertainty/unforeseeable consequences in this age of debt/credit.

Interesting times. :)

[ThePythonicCow]

The focus of my opening post is that we're seeing hyperlending, which will lead to hyper-indebtedness, for a long time to come.

The Fed is not hyperinflating. They are hyperlending.

Derivatives are not simply "bad bets" in gargantuan quantities. They are part of the mechanism for exchanging poor quality debt, such as mortgage backed securities, that could be defaulted, with high quality debt, such as US Treasuries, that will be next to impossible to repudiate, and that will enslave us for a generation.

[ThePythonicCow]

Aha - now I see why the forecast of Jim Willie, and others that the US Federal Reserve Dollar (the world's reserve currency) will be replaced, domestically, within the US, with a Treasury Dollar (what Jim calls the Scheiss Dollar (http://www.gold-eagle.com/article/split-birth-new-scheiss-dollar).)

Of course! The Debt Lords (aka Banksters, purveyors of Debt, not Drugs) again and again crush nations by arranging to have the nation's national debt owed in a currency that they cannot print, while their people and businesses use another national currency, that can be inflated to worthlessness on the Forex market, so that the people and businesses cannot afford to buy anything.

Over and over, nations owing debt in "other" currencies (whether that be Venezuala in US Dollars or European nations in Euros, or a hundred other examples) get crushed by the Banksters. They get rung through the wringer, every ounce of extractable wealth squeezed out.

https://www.families.com/wp-content/uploads/media/133380495-M_01.jpg
Old fashioned washing tub and wringer.
Now this must happen to the US as well.

The external debt of the US (and many other nations) will continue to be owed in US Federal Reserve note dollars ... which will become increasingly hard to come by.

The internal income and savings of Americans will become increasingly worthless, reflecting the current inability of the US to pay for its imports with exports of similar value.

Americans will become poorer, and those holding US Dollar denominated debt will leverage that debt to claim title to US property, resources, production, labor and tax revenue flows, for many years to come.

The Scheiss Dollar is an essential step in repeating the experience of countries such as Venezuela ... in the good 'ol U S of A.

Summary:

The Banksters have been building up as much debt burden on and in the US as they can, and are using derivativesand other means to convert that debt to the highest quality, least likely to be repudiated, US Treasury debt they can.
Then when the inevitable collapse comes, and no more such quality debt can be leveraged on the US, they shift the US domestic currency to Treasury (Scheiss) Dollars, so that the US can't "hyperinflate" its way out of the debt hole, and can't afford to import much.

[ponda]

Over and over, nations owing debt in "other" currencies (whether that be Venezuala in US Dollars or European nations in Euros, or a hundred other examples) get crushed by the Banksters. They get rung through the wringer, every ounce of extractable wealth squeezed out.


Yes i have to agree with you that the 'money changer's' have had an extraordinary run of good fortune but can it continue indefinitely ? How high does the debt/credit amount have to get before it becomes news worthy in the mainstream ? Very interesting times ahead in my humble opinion.

cheers

[joeecho]

Hyperlending could ultimately lead to the inability of the populous to revolt using monetary means.

[Ewan]

I assume there is collusion on some level, otherwise once govt/congress etc. realised what had been done they would simply jail all the bankers and default the debt. The politicians must somehow be in agreement with this, at least significant numbers/individuals, to control and direct the correct response to the news that America is bust.

If the dollar collapses that sets a chain reaction through world markets, right? Then the rest of the world is also held to ransom and the Scheiss (so aptly named) dollar takes its place in the global currencies at, presumably, a much better rate.

Is this about right?

[joeecho]

I assume there is collusion on some level, otherwise once govt/congress etc. realised what had been done they would simply jail all the bankers and default the debt. The politicians must somehow be in agreement with this, at least significant numbers/individuals, to control and direct the correct response to the news that America is bust.

If the dollar collapses that sets a chain reaction through world markets, right? Then the rest of the world is also held to ransom and the Scheiss (so aptly named) dollar takes its place in the global currencies at, presumably, a much better rate.

Is this about right?

I think it's because those at different levels of the scheme are essentially dragged along (and play along) based on how vested they are in said scheme. It's a ship of fools where even the lifeboats are mini versions of the ship of fools.

[WhiteLove]

Paul, very good analysis, this could be true, I see a combination of prices going higher the more costly the items are, I see access being limited by limiting the supply while the demand stays the same or increases, causing sometimes very high prices compared to the intrinsic value, I see loans and credit card schemes that are generally unhealthy to society, I see access to information being more and more limited and the quality too, I see the news media being heavily politically biased as well as distracting and the combination of business politics security and laws amplifying the issues by allowing sh*t to happen, the combination is a soup that creates debt slavery for us all, this is what we are currently seeing. It has to come to an end... I think that the solution is that the people of the world unite and take back the power and to have integrity on the individual level.

[Carmody]

The people don't tend to see it as they don't make the connection to the childhood games they used to play.

The banks are literally holding out an empty hand and SAYING there is money in and giving that emptiness to people and corporations, telling you and them..... to pay it back in real 'worked for value'. They manipulate a nothing to make you dance believing in that the nothing is a something.

people would have a difficult time getting their heads around the fact that the banks really do possess a giant NOTHING.

What they do possess, is your belief they (banks) are a SOMETHING.

That is it. They are nothing more than that, at any level.

The rest is just a shell game on a table. Where they tell you to get to work to pay back the nothing they gave you ....with real work that you do. 100% seriously, that's it in a nutshell.

The reality is that you can create a better system than that, where your prosperity is functional, real, motivated and actually leads somewhere..with far less work for yourself... and no power and control for them.

Like any embedded parasite, the banks make it as difficult as possible to understand the basic component of what they do, to be understood. Secondly, they make extrication from their control difficult and as painful to pursue as possible. (close and lock the exit, and make it very painful looking to leave their clutches)

When you think about it, this is all they have to go on, period.

What history says, is that getting rid of fiat bankers is the best course of action, all the time, every time. Every story we hear about getting rid of international banks has turned out good for the given region, in a very positive way, and the system recovers, very very quickly. Because it is (the given region or country), in all ways, far better off, and far healthier than it could ever be if the bankers are involved.

The extrication from the primary mechanisms of manipulation (financial) are difficult, as the war, imperialism, fascism, oligarchy, corporatism, etc, have all attached themselves to the banking mechanism...as the banking mechanism has proven that it has enough complexity and 'shell game' layers....that the average person never makes the logical or intellectual connection required, in order to understand what is going on. Thus banking is a perfect vehicle and mechanism/lever for such groups.

Humanity needs an idealist system of co-joining agreement, in order to function, but banking has proven to NOT be that vehicle... due to the co-opting of the banking mechanism by parasitical groups.

This is the reason I started the 'brainscans and prisoners' thread, as it lays out a functional pathway to removing the base emergence points of the mentality that becomes these groups of parasites. To witness and remove the insanity that becomes the situations that bedevil humanity. anyone can have an idea on that sort of thing, but the methods and pathways of such suggestion must have viability in human daily narratives and norms, and the ability to inspire people in their daily lives and thoughts, to move in the direction of known things and projected desires in a way that fits the life we live now. As that is how the banking and their associated parasites get to you. They fit your norms and known realities and then they twist it. In that thread, I outline the direction and details... in order to return the favour. Like banking, it is a long game, but it fits human desires and aims well enough, that it has a good chance of a near eradication of psychopaths, Which would go a long way into correcting humanity's path.

[ThePythonicCow]

I assume there is collusion on some level, otherwise once govt/congress etc. realised what had been done they would simply jail all the bankers and default the debt. The politicians must somehow be in agreement with this, at least significant numbers/individuals, to control and direct the correct response to the news that America is bust.
The politicians don't just collude with the Debt Lords. The politicians are owned by them. The advantage of "democracy" on large scale, with millions of dumbed down voters choosing between two candidates that they only know through the media is that whoever controls the media and the money needed to purchase media time controls the election. The US Constitution 17th Ammendment that changed the election of US Senators from being done by the state legislatures to being done by a popular vote was a key step in moving those key elections out of the hands of a few who might actually know the candidates, to the hands of the many, who are manipulated by the money and media interests.


If the dollar collapses that sets a chain reaction through world markets, right? Then the rest of the world is also held to ransom and the Scheiss (so aptly named) dollar takes its place in the global currencies at, presumably, a much better rate.

Is this about right?
The exported US Federal Reserve Dollar that is the current basis of the world monetary system might never collapse. It is the Dollar in which vast amounts of debt are denominated. It might rise, and rise some more, becoming increasingly precious, choking off the air supply of any nation or multinational corporation still owing money in that currency. Once all debtors owning money in that Dollar have been brought to heel, and refinanced on terms more favorable to the Debt Lords ... then that Dollar will become a museum piece.

However that Federal Reserve Dollar is written into so many contracts, debts, laws, etc that it will be a major undertaking, extending over years, as the Debt Lords use the situation to squeeze out their various ransoms. The British Pound went through a similar transformation, a century ago, from being the gold-backed currency of world trade, to being the debt-backed currency of an island nation.

[Baby Steps]

We see in London the consequence of this silly lending, asset bubbles. The average london house is now worth about 13 times the average London salary. This is an asset bubble generated by fractional reserve bank lending.

If/when the currency collapses it will not prevent the ultimate destination of this, that these institutions will own EVERYTING via the lien or charge over assets.

If the institution crashes that will not help, because it's assets- the charge it holds over its borrowers property - will be then sold on to the highest bidder by the liquidator.

It is really a world where shadowy elites will use the system to take everything from the people.

[ThePythonicCow]

The banks are literally holding out an empty hand and SAYING there is money in and giving that emptiness to people and corporations, telling you and them..... to pay it back in real 'worked for value'. They manipulatea nothing to make you dance believing in that the nothing is a something.

people would ahve a difficult time getting their heads around the fact that the banks really do possess a giant NOTHING.
It's worse than nothing. It's a swap, of the money (which does have some value in the current market, thanks to its widespread use in trading, contracts and loans) that the Debt Lords have the sole license to concoct out of thin air,
for promissory notes, mortgages, loan documents, bonds, bills, notes and other forms of debt paper.

That's a key point I've been making. Don't look at the right hand with the money they made for "free". Look at the left hand, signing your children and grandchildren into debt slavery.

If they just had the world's only US Dollar Printing Press, which they could use to print Dollars (or whatever the computerized bit creation equivalent is), then that would be bad enough, and lead to the destruction of the value of Dollars (aka hyperinflation) as seen in the Wiemar Republic or Zimbabwe.

That's not what we're seeing here.

The US Dollar (Federal Reserve Note variant) might never hyperinflate ... never. It might rise in value until it ceases to be used, after all debts and contracts and socialized promises denominated in those Dollars have been defaulted or restructured, almost always in terms favorable to the Debt Lords and unfavorable to the debtor individual, corporation or government.

The overhang from the debt burden, much of which has now been promoted to, or (using derivatives) back stopped by, the most senior debt in the current world monetary system, US Treasury debt, will condemn the US to a generation of debt slavery.

It's the application of double entry bookkeeping to high finance - lending as a cover for selling yourself and your children and grandchildren into debt slavery. Lending is a net-net zero pair of entries - fly now, pay later ... paying back more, and paying back repeatedly, with the debtor in a weakened position due to one of the cyclical "business cycle" downturns (which are really a cyclical lending cycle - expand the debt issued with easy lending, and then squeeze their testicles by retracting the lending.)

[ThePythonicCow]

The US Dollar (Federal Reserve Note variant) might never hyperinflate ... never. It might rise in value until it ceases to be used, after all debts and contracts and socialized promises denominated in those Dollars have been defaulted or restructured, almost always in terms favorable to the Debt Lords and unfavorable to the debtor individual, corporation or government.
However that doesn't make the US Federal Reserve Note Dollars a safe haven for Americans to use to preserve wealth.

Likely Americans will be forced to convert their Federal Reserve Notes and any bank deposits they have denominated in such Dollars into Treasury Dollars, the new national currency of the US, which will then soon lose at least half its value in world trade, and continue to further losing value until the US Treasury quits printing them into existence (to pay for socialized services such as Social Security and Medicare, and to pay for contracted goods and services) in excess of the value of the real goods and services that the US exports.

US Bank accounts would automatically restate Fed Reserve note deposits as being in Treasury dollars, and US banks would announce a date, past which they would no longer accept old Fed Reserve notes in exchange for new Treasury dollars. Many old Fed Reserve notes would be brought out from under mattresses, to exchange for the new dollars. Then the new dollars would begin losing value. This would be a repeat of Franklin D Roosevelt's taking of gold in 1933 ... with the Fed Notes being the "new gold", the current basis of the majority of world's debt and contracts.

[lucidity]

I wonder if things will be different when the Chinese take over.

[Althena]

I only owe $2000 to my credit card company and this info makes me not want to pay it, I wonder if there's any point to cancelling debt when the economic collapse looms on the horizon. What difference does it make?

[ThePythonicCow]

I only owe $2000 to my credit card company and this info makes me not want to pay it, I wonder if there's any point to cancelling debt when the economic collapse looms on the horizon. What difference does it make?

It can be useful now, and likely will remain useful, to stay in the "good graces" of the financial institutions. So if one can do so easily enough, then it can make sense to make payments on debt. The Debt Lords can get rather nasty, through the "debt collection agencies" that they sell bad debt to, once you get a bad debt. That's the sort of trade-off that we each have to make for ourselves, whether to keep a clean debt record and "credit score", or not.

[Althena]

I only owe $2000 to my credit card company and this info makes me not want to pay it, I wonder if there's any point to cancelling debt when the economic collapse looms on the horizon. What difference does it make?

It can be useful now, and likely will remain useful, to stay in the "good graces" of the financial institutions. So if one can do so easily enough, then it can make sense to make payments on debt. The Debt Lords can get rather nasty, through the "debt collection agencies" that they sell bad debt to, once you get a bad debt. That's the sort of trade-off that we each have to make for ourselves, whether to keep a clean debt record and "credit score", or not.

I hear you Paul and if it wasn't for the travelling I do around this rock I wouldn't even have a cc. Unfortunately I need it to buy plane tix, make reservations in hotels and a must for rental (hire) cars.

[ThePythonicCow]

This would be a repeat of Franklin D Roosevelt's taking of gold in 1933 ... with the Fed Notes being the "new gold", the current basis of the majority of world's debt and contracts.
... a repeat ... with a difference.

Those who covertly held back their gold from FDR's confiscation could eventually exchange that gold for other things of value (just not at a US bank anymore.)

Anyone holding back a Fed Reserve note will end up with a nicely engraved piece of paper that they can frame and hang on the wall, next to their great-great-...-great grandfather's Confederate Dollar (issued by the southern states during the 1860's US Civil War). Gold is gold, and will remain gold, with some value (more or less, depending on what technology or physics is used to bring new gold to market.) All paper currencies eventually lose value down to the value of the paper they're printed on.

[joeecho]

This would be a repeat of Franklin D Roosevelt's taking of gold in 1933 ... with the Fed Notes being the "new gold", the current basis of the majority of world's debt and contracts.
... a repeat ... with a difference.

Those who covertly held back their gold from FDR's confiscation could eventually exchange that gold for other things of value (just not at a US bank anymore.)

Anyone holding back a Fed Reserve note will end up with a nicely engraved piece of paper that they can frame and hang on the wall, next to their great-great-...-great grandfather's Confederate Dollar (issued by the southern states during the 1860's US Civil War). Gold is gold, and will remain gold, with some value (more or less, depending on what technology or physics is used to bring new gold to market.) All paper currencies eventually lose value down to the value of the paper they're printed on.

Wow! If history has taught us anything, this post hits the mark. Even the value of the paper it's printed on changes. It an all digital world paper is worthless.

[ThePythonicCow]

All paper currencies eventually lose value down to the value of the paper they're printed on.
This overstates the value of a failed paper currency.

It becomes worth less than the paper it was printed on.

The blank paper, before being printed as currency, makes better bathroom tissue. Those fancy ink and seals and such ... y'know ... too scratchy.

[joeecho]

Monopoly money only has worth if it is accepted (or forced to be accepted) within the game of Monopoly. If Monopoly money were somehow sanctioned as the official default currency we'd all be rushing into our closet to find that board.

The fundamentals of currency is such a powerful subject. I understand the fundamentals, it's the intricacies that are where I seek threads like these.

How or can the average Joe really be prepared for a change in currency? And what indication(s) lead one to believe that preparation will bear fruit? I'd like to be prepared but everywhere I turn, currency is there in one form or another of which I do not appear to have any control.


Let the American people go into their debt-funding schemes and banking systems, and from that hour their boasted independence will be a mere phantom - William Pitt

[Baby Steps]

I only owe $2000 to my credit card company and this info makes me not want to pay it, I wonder if there's any point to cancelling debt when the economic collapse looms on the horizon. What difference does it make?

I would say if you have any registered debt, and the collapse comes, then any asset you posses will become fair game...

[AutumnW]

Paul, thank you so much for explaining this. It's something I have thought, as well, though it confused me for years. Simply printing money and showering society with it or spraying it firehose style into banks would reduce it's value to zero almost immediately. The money is loaned into existence, as you have described. It HAS to be paid back -- with interest, by you. The paying it back part, is where products, blood sweat and tears occur. Sooooo...there actually is something to show for it.

However I wouldn't write off gold bugg**s completely. We, the people, are paying back our debts but the American government, is creating money that it is not paying back, apparently. There is a black hole of money disappearing and unaccounted for in the black budget. This can work until the U.S currency hegemony, through it's reserve status is challenged by countries like China and or Russia.

If the dollar starts to lose its reserve status, these massive accounting discrepancies will become obvious, as the dollar declines. And then...a reset, but there will be a window of opportunity, while this unwinds, for gold to appreciate in value, before a global digital currency using block chain technology is instituted. And the window of opportunity could be 5 or 10 years. Who knows?

There is a caveat to all of this, though. If -- and it is a huge 'if' that black hole of dollars has gone into producing very sophisticated defensive and offensive strategic military weaponry, the US might remain in the catbird seat. I rather doubt this though, judging by China's confidence in the South China seas.

[Althena]

I only owe $2000 to my credit card company and this info makes me not want to pay it, I wonder if there's any point to cancelling debt when the economic collapse looms on the horizon. What difference does it make?

I would say if you have any registered debt, and the collapse comes, then any asset you posses will become fair game...

Mmm, good luck with that, I sold everything I owned back home and I now live in the middle of nowhere in Patagonia. Molon Labe.

[regnak]

Paul your opinion is highly valved and i was wrong to say you were wrong sorry much respect ....

i think ......

People work in there own self interest . World wide debt is around 200 trillion America only a pittance around 20 trillion and with the Euro about to collapse there are no other game in town because China is simply not big enough to cope with trillions in investment .
The Dollar is rising and fear should be rising in you because of it . World wide the big money is in investment and rich people love safety not risk . The dollar has a huge deficit every year minus trade balance mostly to China who are selling the Dollar hard not to crash the Dollar but to stop its accent into the orbit around Earth .

With the Dollar in orbit around Earth interest rates will not be far behind and with huge budget deficits the game over for America by goes the reserve currency all your loans get called in riots seizure of pensions funds looting chaos collapse in goverment which is only for starters wow to a rising dollar and goverment saving pension funds from excessive fees ( seizing all pensions funds you get zip ). The federal reserve for all its power does not control interest rates the market does by buying or not buying goverment bonds if people refuse to buy they offer more interest rates to get more buyers. Last stage is forced loans were the bank takes your money and buys goverment bonds and default in the same day ( you get worthless shares ).Then Goverment says say no pension, no dole , no childrens allowance , :Party:( party starts here )

Your on your own tough ....:o

[joeecho]

It becomes worth less than the paper it was printed on.



There is a play on words there that rings practical, financially speaking.

Worth less, less worth.

http://www.clipartkid.com/images/58/empty-pocket-clipart-clipart-panda-free-clipart-images-XCkFgg-clipart.jpg

[ThePythonicCow]

well Paul you know a lot about this topic but your wrong.....
Well, I may well be wrong ... it would be far from the first time I was wrong.

But at least I'm taking a somewhat original view on things, rather than repeating a mix of various alternative media memes :).

[joeecho]

I only owe $2000 to my credit card company and this info makes me not want to pay it, I wonder if there's any point to cancelling debt when the economic collapse looms on the horizon. What difference does it make?

I would say if you have any registered debt, and the collapse comes, then any asset you posses will become fair game...

With that being said, doesn't it seem we are on a downward trending collapse now, not in the future?

Isn't a hyper-currency or a hypo-currency a change in currency without even changing the look of the 'paper'? it doesn't need to change to Treasury Dollar/ Scheiss Dollar or whatever. That is just a shell game and we know who loses in that game, the player.

[regnak]

Paul your posts are worth reading and something i look forward to .Media is controled because if they gave a opinion they be fired or prison or both . Giving the questions to Hillary before a interview and
in another case where one question was asked without notice about her emails she lost it with her staff and her staff spent couple days giving out about the presenter.

Hyperinflation only happens when they have no trust in goverment . In Germany 1930's the Goverment invited the Soviets into Germany to take over the country there
was not only a run on the Banks but the money were people spent or moved every single penny they had because they had zero trust in goverment .

[Baby Steps]

I only owe $2000 to my credit card company and this info makes me not want to pay it, I wonder if there's any point to cancelling debt when the economic collapse looms on the horizon. What difference does it make?

I would say if you have any registered debt, and the collapse comes, then any asset you posses will become fair game...

Mmm, good luck with that, I sold everything I owned back home and I now live in the middle of nowhere in Patagonia. Molon Labe.

phew... I envy you!

[regnak]

I would say if you have any registered debt, and the collapse comes, then any asset you posses will become fair game...
i agree


debtors prison were if you do not pay your debts they send you

[Althena]

...

Mmm, good luck with that, I sold everything I owned back home and I now live in the middle of nowhere in Patagonia. Molon Labe.

phew... I envy you!

Yo can do it too, it just takes a little determination and most of all NO FEAR. Just ask the ex-pats in this forum, we're everywhere.

[Baby Steps]

Yo can do it too, it just takes a little determination and most of all NO FEAR. Just ask the ex-pats in this forum, we're everywhere.

i cannot convince certain people, God bless you all...

[ThePythonicCow]

The banks are literally holding out an empty hand and SAYING there is money in and giving that emptiness to people and corporations, telling you and them..... to pay it back in real 'worked for value'. They manipulatea nothing to make you dance believing in that the nothing is a something.

people would ahve a difficult time getting their heads around the fact that the banks really do possess a giant NOTHING.
It's worse than nothing. It's a swap, of the money (which does have some value in the current market, thanks to its widespread use in trading, contracts and loans) that the Debt Lords have the sole license to concoct out of thin air,
for promissory notes, mortgages, loan documents, bonds, bills, notes and other forms of debt paper.

That's a key point I've been making. Don't look at the right hand with the money they made for "free". Look at the left hand, signing your children and grandchildren into debt slavery.

If they just had the world's only US Dollar Printing Press, which they could use to print Dollars (or whatever the computerized bit creation equivalent is), then that would be bad enough, and lead to the destruction of the value of Dollars (aka hyperinflation) as seen in the Wiemar Republic or Zimbabwe.

That's not what we're seeing here.

The US Dollar (Federal Reserve Note variant) might never hyperinflate ... never. It might rise in value until it ceases to be used, after all debts and contracts and socialized promises denominated in those Dollars have been defaulted or restructured, almost always in terms favorable to the Debt Lords and unfavorable to the debtor individual, corporation or government.

...
On the other hand, the US Dollar (Federal Reserve Note variant) might behave like housing prices in the major coastal US markets over the last few decades.

Housing prices rose, and rose some more, over multiple decades. Any setbacks were temporary, and taken as an opportunity to "Buy The F'in Dip" ("BTFD" is a well known acronym in Wall Street.)

Similarly US Treasury prices have rose and rose some more, since the early 1980's. This is commonly reported by noticing the falling interest rates for Treasury debt, from some 15 to 20 % back then, to some 0 to 2 % now (which tends to confuse many.)

Peaks in the housing price market are marked by a slowing rate of sales ... fewer and fewer houses are bought at the unusually high price. Then a few desperate sellers have to sell more houses than the thin market can handle, and the price starts falling.

So watch for that to happen in the US Dollar (Forex) market. Watch for the volume of US Fed Dollars traded on the Forex market to start to decline, as an indication that the US Dollar strength is near its top.

(Oops - from a few weeks ago: Currency trading volume falls for first time in 15 years (http://www.marketwatch.com/story/currency-trading-volume-falls-for-first-time-in-15-years-2016-09-01) <grin>.)

So long as more repayments can be squeezed from the debtor, the Debt Lords like to arrange that the currency of repayment is strong. It's more profitable to be repaid in currency that buys a lot.

Once the debtor is about tapped out, then the Debt Lords like to cut off any sources of lending or funding to the debtor, so they can foreclose, repossess or otherwise extort more wealth.

Once the volume of repayments in a currency, such as the US Dollar, that is used for vast amounts of debt repayment, begin to decline dramatically, then the Debt Lords preferences reverse. Whereas before they wanted the value of the currency repayments to remain high, now they want to flood the market with that currency, to buy up whatever they can, before that currency collapses. Hyperinflation favors the "first inflator", the originator of the excess currency, as they get to buy things with it, before its value collapses.

So ... once most of the US Dollar denominated debt in the world that is going to be repaid, has been repaid, then I would not be surprised to see the US Dollar hyperinflate.

[ThePythonicCow]

So long as more repayments can be squeezed from the debtor, the Debt Lords like to arrange that the currency of repayment is strong. It's more profitable to be repaid in currency that buys a lot.
In the case of US Treasuries, "repayments" are being accelerated. They are coming mostly in the form of selling the Treasuries back to the US Fed, in exchange for resources and property.

Net foreign holdings of US Treasury debt began dropping sharply, early in 2015, and have been falling ever since. This can be seen in the following chart, extracted from the Fed Reserve TIC (Treasury International Capital) report, as posted in the Zerohedge article of a couple months ago: In Surprising Twist, Global Central Banks Dump A Record $335 Billion In US Debt In Past Year (http://www.zerohedge.com/news/2016-08-17/surprising-twist-global-central-banks-dump-record-335-billion-us-debt-past-year):

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/13/TIC%20sales_0.jpg
This would seem to mean that value is going to China and other major sellers of US Treasuries.

But if my thesis, expressed on the Avalon forum in some earlier thread, is correct, the Banksters (aka Debt Lords) are moving their center of operations from the US to China. So they will be motivated to keep the value of US Treasury debt high (very low interest rates) so long as they can exchange foreign held Treasury debt for something of good value.

Then when the volume of US Dollar and US Treasury debt trading in the Forex and Bond markets slows down ... look for the introduction of the Treasury Dollar, and for greater volatility or decline in the value of US Fed Dollars and US Treasury debt in the world markets. I expect that the exchange of Fed Dollars for Treasury Dollars will be forced on the American people, as I described earlier in this thread.

Unlike Jim Willie, whom I continue to follow closely, and many other gold-bug commentators, whom I no longer follow much, I do not expect that the next world monetary system will be gold backed.

"Gold backed currencies" can come in two forms: specie and fiat. A "specie" gold (or silver) system values coinage for the actual value of the gold or silver in them, and the government mint's stamp on the coin simplifies determining that the coin might likely have the specified metal content. A "fiat" gold or silver system issues coins with some precious metal in them, but that amount typically declines over the years, while the face value stamped on the coin remains the same.

I do not expect we will see either such form of metal backed monetary system in the forseeable future. The exhorbitant privilege of a debt-money system is just too great for the Elite Bankster Bastard Debt Lords to abandon.

When starting a new variant of a debt-money system, such as now when shifting from the US Dollar to some SDR-like variant of a basket of major national currencies that includes the Chinese Yuan, the Banksters like to start off with the primary lending currency being "cheap", and then rise over the decades.

The principle driving this is simple: Lend cheap and extract repayments dearly. Lend out something that isn't worth much, and force repayment in something that's worth more.

It's a variant of the classical principle: buy cheap and sell dear.

This can be seen in the rise of the Petro-Dollar variant of the current US Fed Dollar reserve currency system, which began with cheap dollars and cheap Treasuries (as reflected in the high interest rates they had to offer, upwards of 20% in the early 1980's, under then Fed chair Paul Volcker). Ever since, as US Dollar denominated debt has expanded, dollars and treasuries have become increasingly precious. (Note, given the increasing abundance of US Dollars and US Treasury debt over recent decades, this is clearly not simple market driven pricing.)

Now with the decline in world petro prices and world shipping, Dollars are becoming very difficult for some nations to get, making it difficult for them to service their debt. Take Venezuela as an example.

Meanwhile, on the other side of the Pacific, in China, which is beginning its turn as a lead nation in the world's monetary system, the Yuan is losing value rapidly (just as the Dollar did in the 1970's and early 1980's.) Yuan will make fine currency units to lend out ... they're cheap. They will then begin to rise in value, once a good debt market is established, over perhaps the next ten years.

The role of gold and silver in this will be as a transition aid ... a life boat to get from the USS Dollar Ship to the PRC Yuan Ship. I suspect that the wealthier individuals who might be using gold to carry wealth across a pending US Dollar collapse to the new world monetary system are happy to spread the rumor that the new monetary system will be a gold backed ('specie' or 'fiat', they never seem to say) system, so that they will be able to unload their transient gold holdings on the other side first, while the gold-bug fools are still hanging on, expecting $100,000/oz gold and a new gold based world monetary system.

[ThePythonicCow]

The above anticipated changes, from the declining US Reserve Dollar system, to a multi-lateral system, with a lead role for the Chinese Yuan, but (unstated above) globally controlled through the Bank of International Settlements (BIS), does not happen over night.

China has great distortions in its internal economic and financial systems. It has been developed very quickly, to serve as the dominant low cost manufacturer for the planet. This is a totally unsustainable model, financially, economically, politically and even environmentally.

But there is a great difference between what will happen to China and what will happen to the US, through this world economic and monetary reset.

The US debt overhang, for debt held at all government, business and individual levels, will be leveraged by the Debt Lords to reposesses, foreclose or 'privatize' (buy for pennies on the dollar) much of the property, businesses and resources of the US.

The Chinese debt, mostly internal, will be repudiated - some sort of debt jubilee, likely a messy sort.

Like the US in the 1970's (though likely more traumatic than the US was then) China will have to go through a major economic, financial, and monetary reset within the nation over the next decade. Perhaps we will see Xi Jinping's successor (he's the current Chinese President) recommending to the people of China that they wear more sweaters if they can't afford heating in the winter, as President Jimmy Carter famously advised Americans, in the late 1970's <grin>.

The end result will be that the great nation formerly known as the world's sole super-power will be recolonized for its resources and will redevelop its local manufacturing, for most of what it uses.

[ThePythonicCow]

I've struggled to make sense of why there had to be (in Jim Willie's strongly held view) a new, separate, Scheiss (US Treasury issued) dollar, separate from the current Federal Reserve notes that we Americans (and many others around the world in various ways) use as dollars.

I think I might have figured this out now. Here's my guess as to what this means.

The domestic US currency, once the US no longer has the exhorbitant privilege of issuing the world's reserve currency, must be free to be expanded in volume, in order to cover with inflation what cannot be covered with actual productivity. The US becomes just another debtor nation, with its own weakening national currency.

However the current vast quantity of contracts, investments, reserves, agreements, treaties, other linked national currencies, etc, etc about the world that are denominated in US Dollars must be insulated from this weakening US national currency. Indeed, the Debt Lords will want those international instruments to continue to be denominated in a strong, stable currency.

So it's as if the current US Federal Reserve Dollars become the first really huge Bitcoin -- meaning an abstract currency unit, stabliized by virtue of its relatively fixed quantity in circulation. (Not as if any block chain crypto currency technology was used, however.) This would be by International Bankster decree. The amount of such Fed Dollars in total circulation would be fixed at whatever it is, with no more lent into existence. The value of such Fed Dollars would be fixed by BIS decree, in some such form as $5000 Fed Dollars per ounce of gold (the $5000/oz value being the rumor that Jim Willie's hearing.)

Future currency growth would come from lending other currency units into existence. Fed Dollars could still be lent ... but only those Dollars you actually held could be lent, not new ones.

This would also solve the problem of the immense existing base of Fed Dollars, debt denominated in those dollars, and so much else denominated in those dollars. Fed Dollars would live on, but as a basis for the BIS to control the currency of existing financial arrangements using them, not as a basis for financing an Empire.

After a pre-announced exchange period, Fed Dollars would no longer be accepted at US banks however. I guess you'd have to smuggle them out of the country if you wanted to use them. And if you are an American with money in the bank, it would be restated as a Treasury (Scheiss) Dollar deposit, and that would be all you could withdraw. If you were an American receiving money as a wage or salary or benefit or payment from a business or branch of any government within the US, you'd start receiving Treasury Dollars.

These Treasury (Scheiss) Dollars would not be "just printed", nor would they have any substantial gold or silver backing. They would be lent into existence, for the Debt Lords (Banksters) would have no less. I call them Scheiss Dollars because that's what Jim Willie calls them, and I call them Treasury Dollars, because I'm guessing they will say they are issued by the US Treasury on them, not by the Federal Reserve.

[Justplain]

If the US government were to default on its 18 trillion $US debt, then the $US tanks as well. I dont see how the American congress would fall for the Treasury Dollar scam and still let the Fed keep lending US greenbacks that they are liable for. Investors wouldnt buy it either. It is well understood in financial circles the dangers of unhedged borrowing in a foreign currency. The real danger here is a US default which would drastically reduce the value of the $US (see Argentina, Russia, etc.).

The big crime from the 2008 financial crisis was that the bailout 'TARP' fund bought 'toxic' (non performing) loans from distressed banks at book value, rather than at some more realistic closer to market value. In doing so the banks did not have to pay for bad lending policies. It also allowed the fraudulent mortgage backed security business to survive (goldman sacks is so appreciative).

If the public held government to account for going into debt from overspending, and if consumer household debt was better controlled, then they wouldnt be in this situation. But the sheeple want to have it all and have it now, as advertised, so thats why we are where we are.

[ThePythonicCow]

If the US government were to default on its 18 trillion $US debt, then the $US tanks as well.
Exactly -- that's the plan (for the US Dollar to tank) :).

The US government does not respond to what's best for the US. They are bought and paid for by "higher authorities" (and I don't mean the kind that many people worship on their Sabbath day.)

It will first take a crisis, and then the "US government" (various Congress critters and the President) will do what they are called upon to do, by their masters, and the main stream media will report it to the public as they are told to report it (which I guarantee you won't be the truth.)

[AutumnW]

I only owe $2000 to my credit card company and this info makes me not want to pay it, I wonder if there's any point to cancelling debt when the economic collapse looms on the horizon. What difference does it make?

Knee caps that remain intact??;)

¤=[Post Update]=¤



All paper currencies eventually lose value down to the value of the paper they're printed on.
This overstates the value of a failed paper currency.

It becomes worth less than the paper it was printed on.

The blank paper, before being printed as currency, makes better bathroom tissue. Those fancy ink and seals and such ... y'know ... too scratchy.

OMG. Funny. Please don't squeeze the 'harmin'

[AutumnW]

Gold has done a fairly good job of rising in price with inflation, but panic buying when things look like they are going to collapse, like the Lehman crisis? Several times in the last few decades, gold should have been on a tear, as a safe haven, but it hasn't happened. I think, more than anything, this has to do with a lack of familiarity with precious metals and their function and also armies of stock brokers who discourage this kind of investment.

It is all perception and there is, of course, manipulation in the pm market that is fairly opaque.

As things get weirder and weirder--for a population that is increasingly super angry, almost pre revolutionary, gold may get a solid bump up. It remains to be seen. I am hedged several different ways to protect myself and am not as concerned about return on a dollar right now as return OF my dollars, in Canadian banks!

Agree on Jim Willie and other extreme gold bugs. Same as the peak oil crowd. The word, 'maybe' isn't in their vocabulary and who knows how many people sold tangible assets that have since exploded to the upside to buy gold, at 1900.00 Yankee bucks and oil shares at the peak of 147.00 a barrel??

[conk]

All very, very interesting. Much about the whys and the how, but what of the solutions for everyday Joe? As the dollar value plummets toward nothingness do we fill up our houses with tangible items thought to hold value? Metals, art, antiques, vintage items, food, guns/ammo? What if someone has been fortunate to accumulate a few hundred thousand or a million? Hard to acquire so much stuff to hold in the hand. Land? Are we all screwed and destined to watch a lifetime of labor vanish into the air?

I've settled on the idea of a small farm with a creek or pond. At least my children can live there and scratch out a living, digging in the dirt with the chickens. That is until the collectivists and central planners decide it's not in the best interest of everyone else that my kids own their own land. Their existence a mere abstraction to the planners.

[TargeT]

All very, very interesting. Much about the whys and the how, but what of the solutions for everyday Joe? As the dollar value plummets toward nothingness do we fill up our houses with tangible items thought to hold value? Metals, art, antiques, vintage items, food, guns/ammo?

Tools and other long term "stuff".. I buy high quality non-battery electric tools, getting a well with my next saved up chunk.. I don't see how "useful" things are ever a bad expenditure.




What if someone has been fortunate to accumulate a few hundred thousand or a million?

1st world problems... "I have too much money & can't buy enough to save it's value when everyone else is struggling"


There's an estimated 34 million "millionaires" (https://www.quora.com/How-many-people-in-world-have-net-worth-of-more-than-1-million-dollars) with over 1mil in assets.. That's less than 1% of the world population... I'd say your "everyday joe" comment rules them out pretty quickly.

Besides (IMO) if you have amassed that much wealth you most certainly did it to the disadvantage of others.. maybe massively so.... I guess I"m a bit biased against those who used the system (that was designed for them to use) to their advantage.

[Justplain]

What can go wrong with owning your own real estate? Then having the ability to live off grid, at least for a short time to start with, is a good idea. Real estate continues to exist, and be useful, regardless of what markets do. It's also a very good idea to only acquire assets that can be paid off in a reasonable length of time. Bankers or lenders won't forgive debt, they'll only take the asset when given the chance.

[conk]

Besides (IMO) if you have amassed that much wealth you most certainly did it to the disadvantage of others.. maybe massively so.... I guess I"m a bit biased against those who used the system (that was designed for them to use) to their advantage.

Well, I most certainly did not obtain mine using other people. I got mine by busting my ass for 70 hours a week for 35 years. I spent frugally, without depriving my family of a normal lifestyle. Used the system? No, I used my brain and my work ethic. Never abusing or using anyone. There are others who also deserve to maintain the value of that hard work. Careful about the labels TargetT, I don't think you are that kind of person really.

So, tell me why I should sit idly by and watch the fruit of my production rot or vanish. Because you don't think it's deserved or ill gotten? Rubbish.

Also, we are not blind to the struggles of others. With much empathy a large percentage of our worth has gone to and still goes to those without, gladly. :coffee:

[TargeT]

Also, we are not blind to the struggles of others. With much empathy a large percentage of our worth has gone to and still goes to those without, gladly. :coffee:

If you have a million in liquid assets (very rare) then yes, storing that wealth would be a difficult, I was just expressing my lack of sympathy for those types of problems ;)

And my general distrust of people with money, since I've had a lot of bad experiences with them working in the service industry my whole life.

[ThePythonicCow]

Future currency growth would come from lending other currency units into existence. Fed Dollars could still be lent ... but only those Dollars you actually held could be lent, not new ones.

This would also solve the problem of the immense existing base of Fed Dollars, debt denominated in those dollars, and so much else denominated in those dollars. Fed Dollars would live on, but as a basis for the BIS to control the currency of existing financial arrangements using them, not as a basis for financing an Empire.
Brandon Smith, in a new article at The Dark Agenda Behind Globalism And Open Borders (http://www.alt-market.com/articles/3045-the-dark-agenda-behind-globalism-and-open-borders), has a nice quote on central banking, in which each nation or region's money is controlled by central banks that lend that money into existence, under the control of a global central bank, the Bank of International Settlements (BIS):

central banking in general is nothing more than a mechanism for driving nations into debt, currency devaluation, and ultimately, enslavement through widespread economic extortion.
Brandon provides a fine description of what the globalist banksters are up to in this article.

[ThePythonicCow]

The Fed hasn't been "printing" (or key stroking) dollars. They have been lending trillions of US Dollars into existence. That's how central banks work -- they don't (usually) just "print" money, rather they lend it, so that they can get you coming (with principle, fees, and interest payments) and going (with bankruptcy, foreclosure, repossession, austerity and privitization).

Simply hyperinflating a nations currency by running the printing presses non-stop only harms the value of current wealth saved in that currency. As we saw with Germany and the Weimar Republic's hyperinflation, a nation can completely recover from such abuse of its currency, in a few years.

What we're seeing is not hyperinflation. It's hyperlending, which is what I call here the lending of amounts overwhelmingly greater than what can reasonably be repaid.

Hyperlending sells a nation, its businesses, and its people into debt slavery for generations.

We Americans are having our children and grandchildren delivered into debt slavery.
There might be a shorter way of saying this.

Question: What is Capitalism?

Answer: That's when banks lend money into existence, against existing revenue streams and assets as collateral.

There are some problems with Capitalism, as thus defined:

Banks typically lend against existing revenue and assets, not against anticipated productivity increases. Their fundamental intent is not to improve our prosperity, but to improve their stranglehold over whatever assets and incomes we have.
The amount lent, in proportion to the income we (individuals, businesses, governments ... ) have to make payments on that debt, grows inexorably, in accordance with the exponential nature of compound interest.
Such a system is fundamentally unstable. This parasitic lending eventually kills or gravely weakens the host. Such will become visible to the common person, during the coming world wide economic collapse.

By the "accepted" books of economists, Capitalism is defined as "an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state."

This is totally wrong. Not true.

Capitalism, as currently practiced ends up with the income and assets of all, large and small, individuals, businesses and governments, being controlled by the banksters, as collateral on the ever increasing debt.

(Well, perhaps not "totally wrong", on a technicality. "Private owners" do control the trade and industry ... if you include "banksters" in the category of "private owners" <grin>.)