Browsing "Global Financial System"

Bank “Bail In” Laws – Financial System Inquiry

On the 7th December 2014 the Australian Treasury Department released the “Financial System Report”.

It is a 320 page document that covers many aspects of the Australian financial system and the objective according to the report was to:

“…examine how the financial system could be positioned to best meet Australia’s evolving needs and support Australia’s economic growth. Recommendations will be made that foster an efficient, competitive and flexible financial system, consistent with financial stability, prudence, public confidence and capacity to meet the needs of users.”

The word “Bail in” is used 15 times in the document – but is seems to indicate that the report is not proposing “Bail in” for depositors and reminds the reader that depositors are covered by insurance up to $250,000.

“The Inquiry strongly supports continuing the current Australian framework in which deposits are protected through an explicit guarantee under the FCS, supported by depositor preference. The Inquiry specifically does not recommend the bail-in of deposits” Page 146

You can download the report here:  http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf

 

The Real Story about Syria, Trump, Clinton and how it links to the Bible.

It has become clear in the last few years that the western media is controlled and owned by globalist leaders who have a hidden agenda.

The truth about what is really happening in Syria and the world is opposite to what we hear on the nightly news. Sadly we are all subject to well crafted propaganda designed to promote the agenda of the ruling class.

Is that conspiracy theory?  After doing extensive research on the global financial system and the philosophies of many of the leading economic and political institutions in the world since the 2008 GFC- I have come to realize that the TRUTH has been hidden on purpose.

These three video’s will give you a little glimpse of what is happening. Maybe when the Snowdon feature film is released we will learn a little more? Read more on these issues at this website. Alan

Why Everything You Hear About Aleppo Is Wrong- Vanessa Beeley

2016 Election Code Unveiled: Hillary and Trump Prophetic Parallel– www.tobywentz.com

One World Government & Collectivism – G. Edward Griffin www.needtoknow.news

Serious Financial Correction?

I am hearing that there could be another serious financial correction coming before during October 2016.

Harry Dent in his Sept 2015 book called “What to do when the Bubble Pops” has some concerning and informative research.  Plus many Youtube stories and now more main stream outlets are saying there is a serious correction or worse coming soon .  It does concern me that so many are now using alarming news reports and headlines in order to try to sell their newsletters/books and seminars.

There some important facts and trends appearing – these are the facts:

  1. According to Harry Dent the world is facing some serious ageing demographics (Baby Boomers) that will cause major downturns in many industries – and this is one major reason causing the economic concerns globally.Alan Greenspan
  2. Alan Greenspan has recently come out sounding a warning about the ageing baby boomer trend and that Governments especially in the US are not focusing on the issue, which according to Greenspan – if its not addressed will cause serious economic problems.
  3. APRA – Australia financial regulator has released a report sounding a warning that Australian Banks are at serious risk because of the high private debt levels in average families who have mortgages. The private debt levels are higher than back in 2008, so if another GFC hits jobs then there will be a quick and significant level of mortgage defaults that might bring down a few major banks.
  4. The China stock market is currently down 42% from its past highs, and the Chinese slow down has already been hurting Australian Industry and could have more serious effects in Australia – especially if China continues to slow. Dent believes China will have a major ongoing downward corrections because of all the Malinvestment.Ron Paul
  5. Retired US Congressman Ron Paul – is warning the world that the US Government is getting ready to confiscate large portions of it’s citizens assets, in particular the 7 Tillion Dollars of private super/retirement funds in order to prop up the Government and the Banking system.
  6. China and other BRIC’s countries have been buying up large amounts of gold with the possible plan to establish a new reserve currency – The Chinese Yuan Renminbi will be added to the United Nations/IMF- SDR (Special Drawing Rights) currency on October 1st 2016.
  7. All G20 nations are committed to giving their banking system the ability to legally “Bail in” or recapitalize the failing banks with the savings of their depositors.
  8. The counties that need close attention right now are bond markets in Spain and Italy as they are the next canary in the mine.

 

The Rich get Richer according to Oxfam. If we have another GFC2 will “Bail in” laws tip the world into civil revolt?

Oxfam UK released a report in Jan 2016 about what has been happening in the world economy as it relates to financial inequality. I am not a socialist but when you wealthy Wall streethear that “62 people own as much as the poorest half of the world’s population” and 1% of the world’s population owns more 99% of the worlds wealth you realize we have a real problem!

Is it any wonder that Donald Trump is getting so much support from the common man. It’s because the average wage earner and small business owner is waking up that the system is rigged and that a very small % of wealthy elite – eg 62 people are getting control of the world and the peoples governments in every nation.

When this happened in France in 1789 the people revolted in the French Revolution. Now it looks like its a global phenomenon.

When not one top banking executive has been jailed because of all the corruption exposed during the 2007-8 GFC  – it is now obvious that not only are the big banks do big to fail they are now do big to prosecute!

If there is another GFC the Banks now have legal authority to take depositors money (Bail in) to recapitalize their balance sheets.

Its time we move away from what seems a like a Death Economy towards a Life economy. A Preferred Economy that is gives back hope of a better future for all.

If you want to check out the Oxfam report click here www.oxfam.org

Red Pill or Blue Pill your decide?

Currently I am listening to “The New Confessions Of An Economic Hit Man” by John Perkins http://johnperkins.org/

The best way to gemorpheus-red-pill-vs-blue-pillt through these books is to listen to them – I have a membership at www.audible.com

The second book is “The Creature from Jekyll Island: A Second Look at the Federal Reserve” by G. Edward Griffin  https://www.freedomforceinternational.org/

Both of these books will open your eyes to the way the Global Economic System really works! 

Which pill do you want to swallow guys?

“You take the red pill—you stay in Wonderland, and I will show you how deep the rabbit hole goes.”

Alan

 

China’s crude oil futures will be a global benchmark- Where does that leave USD??

This article in Reuters is a major indicator that future Oil contacts will be made in Yuan currency and not in US Dollars.

CrudeOil2www.reuters.com

“Apart from the fairly seismic changes this would herald in this massive market it would have even larger potential effects. The end game for the dollar is when it is no longer the sole or preponderant reserve currency. At the moment the US can carry a mind boggling amount of debt and find buyers for more. But once countries no longer need dollars for buying oil and gas then something will happen to the world’s appetite for US debt and the world’s  opinion of how much debt the US can sustain”. Source www.golemxiv.co.uk

What is happening in our Global Markets – Its time we fight for our countries and our freedom!

These two men are well known for their out spoken position on the mistakes global leaders are making, that may well crash the financial system. They believe that centralized banking is what is causing the problems in our global economies.

David Stockman will take you back to before world war 1 and explain what has happened and how history could have been very different if a few people made a few different decisions. We would have been living in a very prosperous world for ALL people and not just a select few.

David Stockman

David Stockman Talks Historical Dominoes   David Stockman old

He is a former Congressman from Michigan, former Director of the Office of Management and Budget under President Ronald Reagan, and former partner at The Blackstone Group.  Stockman is the author of The Triumph of Politics: Why the Reagan Revolution Failed (1986) and 2013’s The Great Deformation: The Corruption of Capitalism in America.  On the show today we discussed how some of his work traces “historical dominoes.”  It was fascinating to learn how certain events in history led to others and so on, until we wind up with thus and so…  For example: how did the creation of the Fed in 1913 lead to the 2008 crisis?  What was the chain of events?

You will find the direct link to the audio interview here  http://politicalbadger.com    David’s web site is http://davidstockmanscontracorner.com/


Gerald Celente

Gerald Celente Talks Global Collapse

Gerald Celente is an American trend forecaster, publisher of the Trends Journal, business consultant and author who makes predictions about the global financial markets and other events of historical importance.

Gerald can get a little excited in his interviews and this one is no exception – but don’t let that detract – the interviewer gets him back on track and he has some profound things to share including this desire to stay in USA and fight for the freedom of the country through a new initiative called http://occupypeace.us/  It seems like a new Revolution is beginning!

You will find the audio interview here  http://politicalbadger.com  or on political badgers iTunes podcast.  Geralds web site is: http://trendsresearch.com/

 

Chris Martenson’s “End of Money” seminar.

Chris Martenson is the founder of Peak Prosperity – you can find his podcast on iTunes. He is an expert on Global Economics and the real state of the financial system. 

He has a practical and well-balanced approach on what might happen and how best to prepare your personal financial situation and how to help your community.

He is not a doomsday prophet, but a sound financial manager who sees what’s happening and attempts to help you navigate through the confusion.

He has prepared a 20 part audio-visual educational series that will explain why the world is in a serious financial and social predicament and how you can best prepare to navigate these storms that are coming.

This series is brought to you by Anglo Far-East a company that specialises in gold purchase and storage (mainly in Switzerland) I don’t receive any commission in providing this series to you but like Chris and AFE, I am concerned that we are all well informed and prepared for what is coming to every person on the face of this earth.

Enjoy the Course at the link below.

http://www.afeallocatedcustody.com/research/crash-course/

Asian Development Bank is end of the US Dollar global reserve currency

The USA has been running the world financial system since the establishment of the IMF -(International Monetary Fund) and the World Bank which was created after the Bretton Woods agreement in 1945.  See Bretton Woods System in Wikipedia

Now after years of US domination, at times bullying and financial irresponsibility of QE (Quantitative Easing ie printing fiat currency)  the BRICS countries have had enough and they have set up a rival financial system that will be operational on 1st of October 2015. see  Asian Infrastructure Investment Bank part of China’s bid for global clout also see the official AII website

The USA tried to stop its allies from signing the AII agreement but on June 27th 2015 – 57 Counties including Australia signed the agreement. see pictures

Larry Summers the former US Treasury Secretary said “This past month may be remembered as the moment the United States lost its role as the underwriter of the global economic system” Bloomberg April 6th  see what Larry says on www.larrysummers.com

So after the 1st October 2015 we might see a significant shift in the value of the US dollar as it will NO LONGER be the world’s reserve currency.

It might be gradual decline or dramatic- no one really knows.

Concerns arising from a 30% drop in Chinese Stock market!

The last 3 weeks the Chinese stock market has dropped by 30% or by $3 trillion dollars.

There are now serious concerns that what is happening in China and in Greece could be a beginning of a major financial correction or worse.

Certainly the Chinese market has been on a steady climb since June 2014 and has more than doubled! So this looks like a needed correction.

For More information check out:

Guess What Happened The Last Time The Chinese Stock Market Crashed Like This?

A RED ALERT For The Last Six Months Of 2015

Chinese Stockmarket Index

Alan

Banks Closed in Greece

Special Request for PRAYER for Greece! 30 June 2015 –  Capital controls imposed, Banks closed, Gas stations empty! Report by George Markakis ICCC member.

Evi and I landed in Athens Airport on Sunday 28 June shortly before midnight, from a week of ministry away in Hungary. We found very long lines of people in front of ATMs waiting to withdraw money, empty gas stations, and everyone speaking of the country being on the brink of financial collapse. The news said that in one day more than 1 Billion Euro was withdrawn from the Banks through the ATMs as people are afraid that the Bank Accounts will freeze and the deposits may be confiscated.

atm-lines-2-bpfbtThe head-on collision with Eurozone’s bosses is at hand, and the Greek Government announced the Banks will be closed and Referendum will take place on July 5 for the people to decide on the country’s future. Whether the country stays in the Euro, or, returns to the national currency of Drachmae, the future looks currently grim without any visible prospects of the economy picking up “to save the day” in the face of so much unemployment.

In the face of this current situation, there is an urgent need for prayer like never before. Would you please take at least a few moments to pray for Greece? There is a great need for the Lord’s intervention so that justice may be established. The need to pray for the NOW situation (Mon. 29 June 2015) in Greece is not only because a whole country is confronted by grave dangers, exposing at least 3 generations to lifelong risks and devastation.
The current situation may result in unprecedented effects for the entire Eurozone, as this is not merely a national crisis – it is all about who holds the power over all Europeans, and who controls what happens in each country.

The financial institutions have already exerted powers that eliminate the national constitution, supersede the authority of elected national Governments, and totally disatm-lines-bpfbtregard all common sense and principles of how economic measures serve the good of the nations and the common good.

Their demands are not really aiming at ensuring the repayment of the debt, because their measures guarantee failure to repay. Their real aim is to usurp authority over the national Government. Greece is a testing ground and beginning of what they want to gradually accomplish over all the European citizens.

What is behind the minds and methods of otherwise human leaders, is the power of Mammon who wants to exert control and manipulate the common people.

That is why our PRAYERS are NEEDED, as in 1 Timothy 2; our prayers have the power to establish God’s Justice in the Political institutions of the European Union.

Source: myiccc.com

New Financial Order maybe around the corner!

The Greek Government might force a major shift in the global financial system on Monday 11th May.

For those who have been watching the financial system will know that China and others in the BRICS nations ( Brazil, Russia, India China and South Africa) have decided to setup a new World Bank in opposition to the IMF- International Monetary Fund which is controlled by USA and Europe.

“The present, inequitable IMF-World Bank system is collapsing under the burden of hundreds of trillions of dollars of unpayable global debts and derivatives obligations, including the Australian banking system’s derivatives exposure of more than $27 trillion. This is the legacy of decades of reckless financial speculation unleashed by IMF-enforced deregulation, and is the driver of the world’s present strategic tensions which have increased the threat of a thermonuclear world war.

Through such new financial institutions as the $100 billion New Development Bank, the $100 billion Asian Infrastructure Investment Bank (AIIB), the $40 billion Silk Road Development Fund, the $20 billion Maritime Silk Road Fund, and the planned Shanghai Cooperation Organization (SCO) bank, the BRICS nations will direct massive investment in much-needed physical infrastructure projects on which all nations can collaborate, forging a basis for lasting global peace and economic prosperity.” Source :Citizens Electoral Council

On Monday the Greek Government will meet the EU Bankers to discuss the Greek debt issue, if this meeting goes bad then we could see Greece leave the EU totally and it would then default on its debt. That could in a worse case scenario cause a domino effect with other nations causing a systemic failure of the global banking system.

The Australian Banking System is not immune to these developments and are not as financially sound  as we all think!  Australian Net foreign debt has risen since 2008 by over 44 per cent, from just under $600 billion to over $865 billion, $639 billion of it in the private sector.

DERIVATIVES_20130821_web2But 3/4 of One Trillion dollars of debt is nothing compared to 27 Trillion dollars worth of Australian Bank derivative exposure!

This graph shows the Debt Vs Capitalization of the Australian Banks in 2011-12 – now in 2015 the situation is 10 Trillion dollars worse in only 3 years! Only the Yellow are bank Assets! Green are our funds which is a liability to the Bank and Red is derivative liabilities.

What happened in 2008-9 our dollar dropped from .98c to USD to only .60c and the world came to the brink of global financial meltdown according the the CEO of ANZ Bank.  Now since Nov 2014 the G20 nations are quietly setting up the Bail in laws that will legally allow the Banks to confiscate their depositors funds and force their customers ( you and me) to accept Bank shares under the guise of we are “Too Big to Fail”! We have allot of good people who work in the banking system and they are not deliberately seeking to crash the system – but after learning about the history of global banking over the last 300 years it has become clear that there are a small group of people who seem to control to entire system.  These people do seem like they want to own the world and the reason why is actually found in the bible.

Do you want to understand the history behind this monumental swindle and how the global financial system really works?  Then can I encourage you to read or listen to via www.audible.com – The Creature from Jekyll Island by G Edward Griffin.  After this book you will never look at the banking system the same way and it is a must for any serious student of history.

Fiat Currency System

100Trillion Dollars

Do you know what Fiat Currency is? You used it every day!

The technical definition is “paper that the government has declared to be legal tender that is NOT not backed by a physical commodity” ie Gold.

This paper (or in the case of Australian money its polypropylene polymer) that we all use- as if it has intrinsic value, (which it doesn’t) it only has value because other people will exchange it for a commodity or service of REAL value like food, petrol, air plane ticket, pay taxes and bills. It only has value while we have confidence that others will accept it as payment for what we really want and use.

There is about 167 official national currencies circulating around the world, even though there is 196 countries in the world – 19 counties use other nations currencies.

No one really knows how much of this “Paper” currency is floating around the world but in 2010 it was thought to be close to $55 Trillion US dollars – ($13 Trillion was in USD currency as at June 2013)

According to a study of 775 fiat currencies by DollarDaze.org, there is no historical precedence for a fiat currency succeeding. Twenty percent failed through hyperinflation, 21% were destroyed by war, 12% destroyed by independence, 24% were monetarily reformed, and 23% are still in circulation approaching one of the other outcomes.

Founded in 1694, the British Pound Sterling is the oldest fiat currency in existence. At a ripe old age of 321 years it must be considered a highly successful fiat currency. However the only reason why it has existed so long is because it was often pegged and exchangeable for gold and silver. A British pound coin was originally weighed as one troy pound of sterling silver! This is why it is still called Pound Sterling – but there is nothing sterling about it now, because in March 2015 it will cost you 164 pounds to buy 1 pound of silver!

So now it’s worth is less than 1/164 or 1.6% of its original value. Therefore the most successful long standing currency in existence has lost 98.4% of its value.

gold

US Gold Backing

Only 56 years ago in 1971 the US dollar was fully exchangeable for Gold Bullion, which was the requirement of the agreement made at Bretton Woods during the post 2ww global financial reconstruction. In 1971 it cost $1.8 USD to buy 1 ounce of silver and $ 40 USD to buy 1 ounce of gold. In March 2015 it costs $1289 USD to buy 1 ounce of Gold and $17 USD to buy an ounce of silver.

What happened in 1971 – every economics follower would tell you it was the year Nixon took the US Dollar totally off the gold standard and refused to honor the agreement to redeem US dollars for gold. That was the beginning of a massive growth in inflation, the sign the US and the west was beginning a steady decline in living standards and purchasing power.

Today there is about 120,000-140,000 metric tons of gold above ground in the world and about 2270 tons of gold is mined out of the ground each year. Interesting China No 1 and Australia No 2 are the two top gold producers today.

The US Gold Reserve is supposed to be just over 8,000 tonnes – which is about 6% of the total gold ever mined. It is worth about $200 billion, or 1.8% of the US national debt. Total US Debt (State and Federal) by end of 2015 is expected to grow to appox $22 Trillion.

Conclusion

This means that roughly 4.46% of US dollars in circulation are ‘backed’ by gold, the rest backed by false promises and goodwill.

Simply put, the price of gold would have to rise 20-25 times in order for the US and British governments’ gold assets to match the supply of money in circulation.

History has a message for us: No fiat currency has lasted forever. Eventually, they all fail.

 

Jan 29, 2015 - Global Financial System    7 Comments

Has Australian Treasurer now Approved Bank Bail in- secretly?

Joe Hockey

What is a Bank Bail in Vs a Bank Bail OUT

In one of my earlier blog posts in October 2013 I reported on International plans by Governments to setup laws to allow Banks to confiscate depositors funds in case of another GFC.

Instead of Governments Bailing Out the Banks – depositors will be those at risk in future if there is another financial meltdown that is called “Bail IN”

It is now looking like the latest G20 meeting in Brisbane has now allowed the Australian Government to make legal this confiscation by agreeing at G20 to legislate Bail IN laws.

Here are a few facts that might amaze you!

The Department of the Treasury’s submission to the Financial System Inquiry 3 April 2014

Bail-in
158. Part of the G20’s policy response to the problem of ‘too big to fail’ is to reduce the moral hazard and fiscal costs through a bail-in regime, which includes a framework for loss absorbency. Bail-in involves allowing the Government to write down the value of bank debt or converting debt securities into equity when the bank fails.

159. In theory, a credible bail-in regime would directly address the moral hazard and efficiency issues caused by too big to fail.

163. ….A bail-in policy would generate efficiency gains by ensuring that lenders rather than taxpayers met the cost arising from the failure of a bank to meet its obligations.”

In this case the lenders are the depositors – you and me!

Reserve Bank of Australia Speech by Glenn Stevens RBA Governor to the Federal Reserve Bank of San Francisco’s Symposium on Asian Banking and Finance San Francisco – 10 June 2014

“Addressing the problem of ‘too big to fail’ entities, a key area of work this year is to put forward a proposal for ‘gone-concern loss-absorbing capacity’, or ‘GLAC’, for global systemically important banks ………….Such entities are sufficiently large and interconnected that an uncontrolled failure could easily cause systemic disruption.

Therefore, it is argued that further loss-absorbing capacity is needed, to be called on at the point of non‑viability, so as to allow vital functions to continue and non-critical operations to be wound down in a controlled way. This limits adverse spillovers to the system and the economy. Generally, this loss-absorbing capacity is to come from a ‘bail-in’ of certain classes of private creditors, so as to avoid calling on the public purse for a ‘bail-out.”

25/10/2014 Bank of England targets end of bank bail-out era – Daily Telegraph

“Global regulators are expected to make further progress towards locking in the “bail-in” regime at next month’s G20 summit in Brisbane,….The new regime comes into place from January 2015.”

Strengthening APRA’s Crisis Management Powers Paper- (APRA is Australian Prudential Regulation Authority) 2012

“Financial Stability Board Key Attributes set out the types of resolution powers that jurisdictions should have available for dealing with financial institution distress. These include the need for robust statutory powers to: … suspend or cancel financial obligations…facilitate bail-in.”

Andy Sutton.com 

“On November 16 2014, leaders of the G20 Group of Nations – the 20 largest economies – made an important decision. The world’s megabanks now have official permission to pledge depositor accounts as collateral to make leveraged derivative bets. And if they lose a bet, the counterparty to the contract has first dibs on your money. The governments of these 20 countries are now supposed to put these arrangements into law……..Thus, when you deposit money in a bank now, you’re taking the same risk as someone buying a stock”

“The G20 has also officially declared that derivatives – the toxic contracts Warren Buffett calls “financial weapons of mass destruction” – are secured debts. Since your bank deposits are now only unsecured debt that the bank has pledged to a secured creditor, guess who gets your money if the bet goes the wrong way for the bank- not you!”

December 16, 2014 | Greg Hunter Report

“Theoretically, we are protected by deposit insurance up to $250,000 in the U.S. and 100,000 euros in Europe. The FDIC fund has $46 billion, the last time I looked, to cover $4.5 trillion worth of deposits.
There is also $280 trillion worth of derivatives that the five biggest banks in the U.S. are exposed to, and under the bankruptcy reform act of 2005, derivatives go first. So, they are basically exempt from these new rules. They just snatch the collateral. So, if you had a big derivatives bust that brought down JP Morgan or Bank of America, there is no way there is going to be collateral left for the FDIC or for the secured depositors.”

___________________________________________

I don’t know if anyone has politely pointed out to the politicians that Taxpayers are ALSO Depositors! So what they are really saying is that the Government of the day does not want to be blamed by the voters when the next GFC hits. But we all know that its the politicians who are allowing these bankers (who have no morals) to get away with theft on a grand scale!

So there might be some interesting times ahead – lets pray for Gods wisdom and understanding as we walk through these days coming.  Alan

May 2016 Update this website explains Bail in very well www.global-precious-metals.com – Check out your country position on “Bail in”

Dec 18, 2014 - Global Financial System    2 Comments

How much is a Trillion Dollars?

“Can anyone tell me how much a Trillion dollars is Please”?

Well the question came back with the answer put in a way that really puts things in perspective!

Example

I owe you some money!

So I say to you  “I will pay you what I owe you in 1 million seconds “

And when you calculate that out 1 million seconds works out to 11.5 days!  OK you say “I can live with that!”

Sorry – I say- ” I meant to say I will pay you in 1 billion seconds – you work that out and it’s 31 years” – Now we have a problem!

But wait – I say “Sorry did I say 1 Billion I actually meant 1 Trillion seconds”!

When you work out what 1 Trillion seconds is – you realize that I plan to pay you in 31,688 YEARS

The USA is now $18 Trillion Dollars in Debt – I don’t think any of us plan to be around long enough to see that paid off!

The next question I have now asked is – “Can someone please tell me Who the USA owes $18 Trillion dollars too”??????

Andrew Huszar: Confessions of a Quantitative Easer

We went on a bond-buying spree that was supposed to help Main Street. Instead, it was a feast for Wall Street.

By Andrew Huszar- Ex FED employee responsible for Wall Street QE – FED purchases.

Nov. 11, 2013
 

 

I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.

Five years ago this month, on Black Friday, the Fed launched an unprecedented shopping spree. By that point in the financial crisis, Congress had already passed legislation, the Troubled Asset Relief Program, to halt the U.S. banking system’s free fall. Beyond Wall Street, though, the economic pain was still soaring. In the last three months of 2008 alone, almost two million Americans would lose their jobs.

The Fed said it wanted to help—through a new program of massive bond purchases. There were secondary goals, but Chairman Ben Bernanke made clear that the Fed’s central motivation was to “affect credit conditions for households and businesses”: to drive down the cost of credit so that more Americans hurting from the tanking economy could use it to weather the downturn. For this reason, he originally called the initiative “credit easing.”

My part of the story began a few months later. Having been at the Fed for seven years, until early 2008, I was working on Wall Street in spring 2009 when I got an unexpected phone call. Would I come back to work on the Fed’s trading floor? The job: managing what was at the heart of QE’s bond-buying spree—a wild attempt to buy $1.25 trillion in mortgage bonds in 12 months. Incredibly, the Fed was calling to ask if I wanted to quarterback the largest economic stimulus in U.S. history.

This was a dream job, but I hesitated. And it wasn’t just nervousness about taking on such responsibility. I had left the Fed out of frustration, having witnessed the institution deferring more and more to Wall Street. Independence is at the heart of any central bank’s credibility, and I had come to believe that the Fed’s independence was eroding. Senior Fed officials, though, were publicly acknowledging mistakes and several of those officials emphasized to me how committed they were to a major Wall Street revamp. I could also see that they desperately needed reinforcements. I took a leap of faith.

In its almost 100-year history, the Fed had never bought one mortgage bond. Now my program was buying so many each day through active, unscripted trading that we constantly risked driving bond prices too high and crashing global confidence in key financial markets. We were working feverishly to preserve the impression that the Fed knew what it was doing.

It wasn’t long before my old doubts resurfaced. Despite the Fed’s rhetoric, my program wasn’t helping to make credit any more accessible for the average American. The banks were only issuing fewer and fewer loans. More insidiously, whatever credit they were extending wasn’t getting much cheaper. QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash.

From the trenches, several other Fed managers also began voicing the concern that QE wasn’t working as planned. Our warnings fell on deaf ears. In the past, Fed leaders—even if they ultimately erred—would have worried obsessively about the costs versus the benefits of any major initiative. Now the only obsession seemed to be with the newest survey of financial-market expectations or the latest in-person feedback from Wall Street’s leading bankers and hedge-fund managers. Sorry, U.S. taxpayer.

Trading for the first round of QE ended on March 31, 2010. The final results confirmed that, while there had been only trivial relief for Main Street, the U.S. central bank’s bond purchases had been an absolute coup for Wall Street. The banks hadn’t just benefited from the lower cost of making loans. They’d also enjoyed huge capital gains on the rising values of their securities holdings and fat commissions from brokering most of the Fed’s QE transactions. Wall Street had experienced its most profitable year ever in 2009, and 2010 was starting off in much the same way.

You’d think the Fed would have finally stopped to question the wisdom of QE. Think again. Only a few months later—after a 14% drop in the U.S. stock market and renewed weakening in the banking sector—the Fed announced a new round of bond buying: QE2. Germany’s finance minister, Wolfgang Schäuble, immediately called the decision “clueless.”

That was when I realized the Fed had lost any remaining ability to think independently from Wall Street. Demoralized, I returned to the private sector.

Where are we today? The Fed keeps buying roughly $85 billion in bonds a month, chronically delaying so much as a minor QE taper. Over five years, its bond purchases have come to more than $4 trillion. Amazingly, in a supposedly free-market nation, QE has become the largest financial-markets intervention by any government in world history

And the impact? Even by the Fed’s sunniest calculations, aggressive QE over five years has generated only a few percentage points of U.S. growth. By contrast, experts outside the Fed, such as Mohammed El Erian at the Pimco investment firm, suggest that the Fed may have created and spent over $4 trillion for a total return of as little as 0.25% of GDP (i.e., a mere $40 billion bump in U.S. economic output). Both of those estimates indicate that QE isn’t really working.

Unless you’re Wall Street. Having racked up hundreds of billions of dollars in opaque Fed subsidies, U.S. banks have seen their collective stock price triple since March 2009. The biggest ones have only become more of a cartel: 0.2% of them now control more than 70% of the U.S. bank assets.

As for the rest of America, good luck. Because QE was relentlessly pumping money into the financial markets during the past five years, it killed the urgency for Washington to confront a real crisis: that of a structurally unsound U.S. economy. Yes, those financial markets have rallied spectacularly, breathing much-needed life back into 401(k)s, but for how long? Experts like Larry Fink at the BlackRock investment firm are suggesting that conditions are again “bubble-like.” Meanwhile, the country remains overly dependent on Wall Street to drive economic growth.

Even when acknowledging QE’s shortcomings, Chairman Bernanke argues that some action by the Fed is better than none (a position that his likely successor, Fed Vice Chairwoman Janet Yellen, also embraces). The implication is that the Fed is dutifully compensating for the rest of Washington’s dysfunction. But the Fed is at the center of that dysfunction. Case in point: It has allowed QE to become Wall Street’s new “too big to fail” policy.

Mr. Huszar, a senior fellow at Rutgers Business School, is a former Morgan Stanley managing director. In 2009-10, he managed the Federal Reserve’s $1.25 trillion agency mortgage-backed security purchase program.

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The Truth about International Money Creation

Quotes by Famous USA presidents and World Leaders concerning the shocking truth about International Banking.

 Thomas Jefferson – ( 3rd President of USA) 

“I believe that banking institutions are more dangerous to our liberties than standing armies.” – Thomas Jefferson

If the American people ever allow private banks to control the issue of their  currency, first by inflation, then by deflation, the banks…will deprive the people of  all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. – Thomas Jefferson in the debate over the Re-charter of the Bank Bill (1809)

… The modern theory of the perpetuation of debt has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating.  –Thomas Jefferson

 James MadisonJames Madison ( 4th US President) 

History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by  controlling money and its issuance” James Madison

 

 

   Andrew Jackson  ( 7th US President )

If congress has the right under the Constitution to issue paper money, it was  given them to use themselves, not to be delegated to individuals or corporations. – Andrew Jackson

 

 

 

Abraham  Lincoln   ( 16th US President)

“The Government should create, issue, and circulate all the currency and  credits needed to satisfy the spending power of the Government and the buying power of  consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity. ” Abraham  Lincoln

 

Roosevelt 

Theodore (Teddy) Roosevelt ( 26th US President)

“Issue of currency should be lodged with the government and be protected from domination by Wall Street. We are opposed to…provisions [which] would place our currency and credit system in private hands” – Theodore Roosevelt

 

Woodrow WilsonWoodrow  Wilson ( 28th US President)

Despite these warnings, Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote:

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of  credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most  completely controlled and dominated Governments in the civilized world no longer a  Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men”. -Woodrow  Wilson

Franklin D. Roosevelt

 

Franklin D. Roosevelt   ( 32nd US President) 

Years later, reflecting on the major banks’ control in Washington, President Franklin Roosevelt paid this indirect praise to his distant predecessor President Andrew Jackson, who had “killed” the 2nd Bank of the US (an earlier type of the Federal Reserve System). After Jackson’s administration the bankers’ influence was gradually restored and increased, culminating in the passage of the Federal Reserve Act of 1913. Roosevelt knew this history.

“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government ever since the days of Andrew Jackson” –Franklin D. Roosevelt (in a letter to Colonel House, dated November 21, 1933)

POLITICIANS

Napoleon Bonaparte

 

Napoleon Bonaparte, Emperor of France

When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” – Napoleon Bonaparte, Emperor of France, 1815

 

bismarck1

Otto von Bismark (1815-1898), German Chancellor

“The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt civilization.” Otto von Bismark (1815-1898), German Chancellor, after the Lincoln assassination

Marx

 

Karl Marx ( Russian, Communist Manifesto 1848).

“Money plays the largest part in determining the course of history.” Karl Marx

 

 

 

Captain Henry Kerby-

 

Captain Henry Kerby- United Kingdom MP

“That this House considers that the continued issue of all the means of exchange – be they coin, bank-notes or credit, largely passed on by cheques – by private firms as an interest-bearing debt against the public should cease forthwith; that the Sovereign power and duty of issuing money in all forms should be returned to the Crown, then to be put into circulation free of all debt and interest obligations…” Captain Henry Kerby MP, in an Early Day Motion tabled in 1964.

 

Ralph M Hawtry,png Ralph M Hawtry, former Secretary to the Treasury.
“Banks lend by creating credit. They create the means of payment out of nothing. ” Ralph M Hawtry
“… our whole monetary system is dishonest, as it is debt-based… We did not vote for it. It grew upon us gradually but markedly since 1971 when the commodity-based system was abandoned.” The Earl of Caithness, in a speech to the House of Lords, 1997.

 

 

BANKERS

William PatersonWilliam Paterson, founder of the Bank of England

“The bank hath benefit of interest on all moneys which it creates out of nothing.” William Paterson, founder of the Bank of England in 1694, then a privately owned bank” See here: An interesting Bio on William Paterson

 

Mayer Amschel RothschildMayer Amschel Rothschild  ( founder of the House of Rothschild. 1744-1812)

“Let me issue and control a nation’s money and I care not who writes the laws.” Mayer Amschel Rothschild

“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” The Rothschild brothers of London writing to associates in New York, 1863.

Reginald McKennaReginald McKenna, as Chairman of the Midland Bank

“I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.” Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924.

“The banks do create money. They have been doing it for a long time, but they didn’t realise it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it.” H W White, Chairman of the Associated Banks of New Zealand, to the New Zealand Monetary Commission, 1955.

OTHERS

Leo TolstoyLeo Tolstoy  ( Russian writer.)

“Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.” Leo Tolstoy,

 

 

Henry FordHenry Ford (founder of the Ford Motor Company)

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.” Henry Ford,

“The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.” Major Lawrence Lee Bazley White/Angas] (1893-1973) Australian-born British statesman, economist

John Kenneth GalbraithJohn Kenneth Galbraith ( former professor of economics at Harvard)

“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple the mind is repelled. With something so important, a deeper mystery seems only decent.” John Kenneth Galbraith (1908- ), former professor of economics at Harvard, writing in ‘Money: Whence it came, where it went’ (1975).

 

Source:  http://www.themoneymasters.com/the-money-masters/famous-quotations-on-banking/

 

“Our Debt-Based Money System Will Break Us”

This article appeared in Prosperity, June 2001

The Earl of Caithness speaks…

This speech was delivered by the Earl of Caithness in the House of Lords, Wednesday, 5 March, 1997. It is reprinted in full from Hansard, Vol. 578, No. 68, columns 1869-1871.

The Earl of Caithness: My Lords, I too wish to thank my noble friend Lord Prior for initiating this debate. It comes at a most interesting time in the run-up to the general election and, as a result, we could not have envisaged the parties opposite saying anything thought-provoking or interesting about the economy. We were not disappointed.

Looking at it from a conventional viewpoint, the economy is in good shape and the Government have done better than most of their counterparts in Europe. We have moved out of recession and on the surface the economy is stronger and people are more confident. There is much that I could say about that. I think the Government have done a very good job.

However, it is also a good time to stand back, to reassess whether our economy is soundly based. I would contest that it is not, not for the reason to which the noble Lord, Lord Eatwell, alluded, which is that it is the Government’s fault, but our whole monetary system is utterly dishonest, as it is debt-based. “Dishonest” is a strong word, but a system which by its very actions causes the value of money to decrease is dishonest and has within it its own seeds of destruction. We did not vote for it. It grew upon us gradually but markedly since 1971 when the commodity-based system was abandoned.

Let us look at what has happened since then. The money supply in 1971 was just under £31 billion. At the end of the third quarter of last year, it was about £665 billion. In 25 years it has grown by a staggering 2,145 per cent. Where has the money come from? Interestingly, the Government have only minted a further £20 billion in that time. It is the banks, the building societies and our commercial lenders who have created the balance of £614 billion. If this rate of growth is projected over the next 25 years, the money supply in 2022 will be over £14,000 billion.

All that new money bears interest paid either by us as individuals, by companies or by the Government. Today the Government pay over £30 billion annually in interest charges — coincidentally about the same as the total money supply only 25 years ago. Governments since then have abdicated their responsibility for producing new money and controlling the money supply so that now they are marginalised. In 1971 government notes and coins accounted for 14 per cent of the money supply. Now it is only about 3.5 per cent. “So what?”, noble Lords might ask.

The problem is that it is commercial lending that has boosted the money supply, thus increasing debt and, as sure as night follows day, inflation follows growth in money supply of this sort. The only reason that debasement has not flowed into price figures in the last four years is that the high interest rates in the recession gutted businesses and individuals, leaving too many unable to pay the price levels that the debasement requires. But the wall of money is increasing remorselessly. The noble Lord, Lord Ezra, mentioned the Halifax Building Society’s latest surplus of about £3 billion to £5 billion.

Since 1991, in a time of recession, it has increased by 32 per cent and most of that is in the last two years. We must remember that virtually all the increase represents a rise in the burden of debt the economy must carry. The wall of money has already driven the stock market to an all-time high and some are now questioning whether it truly reflects company performances. Recently more money has begun to be channelled into both the residential and commercial property markets. Here I must declare my interest as a residential surveyor in central London who has benefited from that. Our company, Victoria Soames, recorded a hardening of the residential market early last year, followed by a 20 per cent rise in the last six months. That rise is continuing, if not accelerating. Lenders remain aggressive and, very disturbingly, the proportion of borrowing by individuals is moving up.

When the money supply increases, as it is doing, the previously existing money is debased accordingly. Therefore, either wages and salaries must also increase to maintain parity or those who earn wages and salaries will find that they no longer participate in the national economy to the same extent as they did previously. This exacerbates the growing fragmentation of our society, which cannot go on for ever. I am not advocating high wages but I am advocating less debasement and better control of the money supply.

When wage inflation does happen, it will feed through to all parts of the economy. The result, sadly, will be that the Government have to use the only tool they know — an increase in interest rates. That has happened fairly recently, but it is not the first time that is has happened. We saw it in the 1970s and again in the 1980s. It is a consequence of our debt-based monetary system that it leads inevitably to business and economic cycles.

Conventional wisdom tells us that in order to create new jobs and boost the economy, interest rates have to be reduced. That has happened. People are encouraged to borrow to invest and spend. That has happened. As the continuing flow of new money finds its way into the economy, inflation will follow and up will go interest charges again to reduce the level of borrowing. In order to pay the increasing levels of interest, borrowers will once more have to reduce expenditure in other areas of economic activity. The cycle will continue, but the next time, as before, we will all start deeper in debt and with a burden harder to carry. Personal debt has already increased by nearly 3,000 per cent since 1971. How much more can we take? I hope, for the sake of our economy, without which we cannot finance what we want to see — a good health service and a good social security system among other things — we will question this conventional wisdom.

We all want our businesses to succeed, but under the existing system the irony is that the better our banks, building societies and lending institutions do, the more debt is created. The noble Lord, Lord Kingsdown, said that there is little that can be done about debt. No, I do not believe that. There is a different way: it is an equity-based system and one in which those businesses can play a responsible role. The next government must grasp the nettle, accept their responsibility for controlling the money supply and change from our debt-based monetary system. My Lords, will they? If they do not, our monetary system will break us and the sorry legacy we are already leaving our children will be a disaster.

Source: www.prosperityuk.com

“Bail in” Cyprus-Style Wealth Confiscation Laws coming to Australia!

In 2012-13 Cyprus a Greek Island in the Mediterranean which is just of the coast of Syria and Lebanon were subjected to a Modern day wealth confiscation called “Bail in” ( instead of Bailout)

It is now clear that bank depositors will lose their hard earned money above 100,000 Euros and they will lose 6.7% of funds under 100,000 Euros.

These were the demands of the EU to secure a 10billion Euro capital injection over the next few years.

Its now happening around the world!

Laws are now being put in place in other countries around the world  like EU, Poland, Iceland, Italy, USA, UK, Canada and New Zealand and it seems soon to come to Australia! (All part of the G20!)

It seems that governments all the around the world are getting ready for a major financial problem which will mean that our savings deposited in the banks will be taken lawfully by our elected governments to stabilize the global banking system!

Just this Month October 2013 the International Monetary Fund has called for a 10% Levy on ALL European household saving accounts!

See the IMF report here go to page 48!

Here is a CNN MONEY news report on the plan – Europe bank rescue plan would hit investors

Poland has just announced that it is confiscating the funds held within Private Pension funds- check out this story at:  reuters.com

The Australian Government has recently confiscated ALL private bank account funds that have not been operated on for over 3 years and announced it will raise the Australian Govt debt ceiling to $500 billion!

See also

Barnaby Joyce Blog site   “Australian government planning to steal your money to “bail-in” so-called “systemically-important financial institutions” (SIFI’s) — under the orders of an unelected international body (of bankers and bureaucrats) you’ve never heard of; a body funded by the Bank for International Settlements (BIS), and chaired consecutively by Goldman Sachs alumni”

Barnaby Joyce barnabyisright.com  “G20-governments-all-agreed-to-cyprus-style-theft-of-bank-deposits-in-2010″

investmentwatchblog.com  Cyprus-Style Wealth Confiscation Is Now Happening All Over The Globe-  September 24th, 2013

wikipedia.org – Cypriot financial crisis

globalresearch.ca  The Bank Confiscation Scheme for US and UK Depositors

etfdailynews.com

Letter found on the internet addressed to Department of Treasury from Australian Financial Markets Assoc.

11 January2013

General Manager – Mr Lonsdale

Financial System Division

The Treasury

Langton Crescent

PARKES ACT 2600

Extract  “However, APRA, as the resolution authority, should have the power to enact a bail – in for banks incorporated in Australia during a resolution.”

David Love

Director

Policy & International Affairs

Australian Financial Markets Association

APRA is the prudential regulator of banks, insurance companies and superannuation funds, credit unions, building societies and friendly societies.

Martial law coming to America?

The economic challenges and the US Government shutdown has now got people talking about martial law.

 

Reports are now coming from Religious leaders and from business and political leaders in America that martial law is coming to USA – caused by a financial collapse.

My last blog post mentioned a coming financial collapse that will cause hyper inflation but now other leaders are warning of martial law.

The current people who are predicting martial law in USA is Rich Joyner, Ron Paul, Peter Schiff and Ellen Brown President of the Public Banking Institute.

http://www.morningstarministries.org/resources/prophetic-bulletins/2013/straw-breaks-camels-back#.Ulk8OFeab-o

http://www.globalresearch.ca/martial-law-and-the-economy-is-homeland-security-preparing-for-the-next-wall-street-collapse/5353267

http://www.theoakinitiative.org

http://www.infowars.com/ron-paul-warns-of-martial-law-and-economic-collapse/

http://www.infowars.com/peter-schiff-warns-of-martial-law/

These are a few extracts from Rich Joyner’s October 8th 2103 report:

  • “The main cause of the crisis that leads to martial law will be a currency collapse and a banking system failure.”
  • “This will lead to a period of near anarchy and chaos that forces our military to intervene to stop the meltdown.”

“The IMF (International Monetary Fund) did a widely publicized study on America’s debt and concluded that our real debt is over 100 trillion. The $16 plus trillion our government is now reporting as our debt is calculated by using a cash basis accounting method that would get us sent to jail if we tried to use it. This figure only reports how much we have borrowed and does not consider future obligations such as entitlements.”

“The IMF study concluded that if Americans were taxed at the rate of 100%, we still could not ever pay our obligations. This alone could ultimately bring down our currency, but it is just one of many deadly factors that could be equally devastating. Something has to give. We have dug a hole that we cannot get out of. It will ultimately result in the collapse of the dollar. That will be an emergency like we have not faced before, but we can get through it. It does not have to be the end of our Republic or our freedoms, but it will take martial law for a time to get the country stabilized and restored to our constitutional moorings.”  Rick Joyner

The USA is a $16.6 Trillion dollar (No 1 in world) economy and Australia a $1.6 Trillion (GDP per year).- The USA is not Australia’s largest export trading partner, China is, BUT the USA is China’s largest export trading nation a total of $411 billion! And the USA is Australia’s second largest importing nation into Australia making up 11.6% of  Australia’s imports. (Australia exports to USA in 2011 was $16billion)

It is now time to consider in Australia what would be the effect on our economy if the USA was to suffer this type of economic shock-wave.

Alan

 

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