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 The news said that in one day more than 1 Billion Euro was withdrawn from the Banks through the ATMs as people are afraid that the Bank Accounts will freeze and the deposits may be confiscated.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.

May 2, 2015 - Technology    No Comments

The “Internet of Things” IoT

IPv6 a new computer protocol for the Internet has now made it possible to connect the entire world to the Internet and they are calling it “Internet of Things” or IoT.

We are not just talking about a few connect devices like we have today, they mean everything on the earth will be connected to the Internet!

Even animals and people are to be provided with a URI which stands a uniform resource identifier  – everything on the earth will have a certain resource identifier and it will be connected to the  global computer network.

Check Out this Video

https://www.youtube.com/embed/QaTIt1C5R-M

 

Apr 29, 2015 - God and the World    No Comments

The Truth about whats happening in Middle East

dr-terry-law-and-pastor-jamal

Terry Law is a missionary in Middle East and he has inside understanding about whats really happening in Middle East.

The head of ISIS took out a kill contract on Terry life because of the amazing work he is doing in Iraq.

Rick Joyner interviewing Terry on 17th April 2015.  http://www.morningstartv.com/prophetic-perspective-current-events/mission-iraq

Terry ministry is www.worldcompassion.tv

This is truly amazing well worth watching.

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 30, 2014 - Geo- Politics    No Comments

Concerning events in Russia

The Russian Ruble has dropped by 50% to the US Dollar

This drop is mainly due to International Sanctions and the Oil price dropping from $107US to $52US in last 6 months. This is now starting to cause serious hardship inside Russia and the ramifications for 2015 are troubling. Certainly it will cause significant inflation and this is one reason why the Russian central bank has raised interest rates to 17% overnight.

About $100 Billion dollars have already left the country during 2014 seeking safer waters which has caused the central bank to tighten capital controls on the flow of money.

Devaluations of this size can cause runaway hyperinflation which is when local owners of Rubles buy up any fixed assets and trade-able goods before their paper money looses more value. This increases the velocity of money ( the speed the paper money changes hands) which further increases the price of goods. This is what happened in Germany leading up to the 2WW.

There are some concerning similarities to what happened leading up to the WW1 and WW2 when you consider the super powers arguing over Ukraine, 100 years from the conflict in the Balkans that started the First World War. Then consider that Japan went to war when the US put an oil embargo on Japan because of Japans expansionist actions in 1930’s.

Oil is again in the center of the issue and again embargo’s are being used to try and coerce Russia to back down over Ukraine.

There has even been some suggestion that the US administration wants a regime change in Russia and this explains Washington’s actions and rhetoric. It is clear that both the Russian President Putin and US President Obama don’t like each other and especially when Putin out maneuvered Obama in Syria. Could it be that Obama is playing a very risking game of Russian roulette?

The question is – why is the West so upset over Ukraine when Russia has such a long history in that region and share a border with the country. It is only natural that Russia will want to secure its borders and would not want NATO living so close. It is interesting to note that the current Kiev Government was supposedly setup by western powers, after deposing a pro Russian elected Ukrainian Government.

Lets be praying that sound heads prevail during these times as we maybe in store for some rocky oceans in the coming years.

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”??????

Sep 2, 2014 - God and the World    No Comments

Bible Secrets & Messianic Prophecies

This YouTube video was produced by Armageddon News.  It is very well researched and has amazing facts about Jesus and the Old Testimony that are profound.

You will be amazed!  Alan

https://www.youtube.com/watch?v=KvEv_lgafLk&list=UUaxqUc1w073l9VrnaZEbi6Q

A “NEW” Ancient Hebrew Bible code, reveals exactly who the Messiah is, and his purpose for coming.

We unveil a Mystery from the first sentence of Genesis, which Hebrew Scholars have sought to understand for thousands of years, ever since the Torah was first written.

And we discover Messianic Prophecies, which prove beyond doubt that Yeshua (Jesus) was indeed God’s Messiah. This broadcast is a “must watch” for Jews, Muslims and anyone else seeking to understand why Christians claim that Jesus was both the Messiah and God.

Jul 4, 2014 - Israel    1 Comment

Hidden Treasures Business Tour to Israel

November 2nd to 10th  2014

These are the dates John Lockwood and I are leading a Christian Business Leaders Study and Trade mission to Israel.

Many of us will first attend the International Christian Chamber of Commerce – IGM in Athens and then begin the Hidden Treasure Tour from Jerusalem with about 20 business leaders from Australia and other nations.

In connection with the Friends of the Hebrew University- Yissum business arm of Hebrew Uni – Hadassah Medical Centre and Kingdom Builders the tour will connect with Leaders in Technology, Education, Medical Research, Politics, Military, Business and Faith.

We are also planning a 3 month Scholarship program at the Rothberg International School within Hebrew Uni that will focus on supporting and encouraging the next generational leaders 25 – 35 year olds.

If you interested in being part of this Study Trade tour please email me at

currie.alan@gmail.com to request a full schedule program of what is planned.

I will be filming the entire trip and produce a short promo about our experiences that we planned to use for future tours.

Hope to hear from you.

Alan

Apr 1, 2014 - God and the World    No Comments

Jesus Speaks from the Old and New Testamant through Ben Hur Film

image

Many people have seen the film Ben Hur released in 1959 by MGM.  I remember watching the 35mm film at my school when I was 14 years old and being really moved by the epic story, but back then I never knew why it moved me so much.

Now 40 years later I now understand why Judah Ben Hur (played by Charlton Heston one of my favorite actors of that era) story moved me show powerfully.  It is an epic story of redemption of one man and of the whole of humanity.

I have taken some moving film images, included music and scriptures from the Old and new Testament Bible, and you hear Jesus speaking to our generation now and to all those who come after us.

As you watch this short clip, consider that Isaiah saw 600 years into the future and penned the words that are now immortalized in the sufferings of Christ on the Cross.

“Heaven and Earth shall pass away, but my words will never pass away” Matthew 24:35

Here is the link to the 2 minute clip  http://www.youtube.com/watch?v=6A5qg-dg8gs

Mar 19, 2014 - God and the World    No Comments

Gods Plan of Redemption found in Names of the Genesis Founding Fathers

Much of the Bible focuses on God’s plan to restore man back to a right relationship with his Creator.

But a well known bible teacher Chuck Missler has revealed the redemption story in the first 10 names in Chapter 5 of Genesis.

The Torah is the Jews most sacred book and it is foundational in Christianity and even in other religions like Islam.

But Chuck Missler’s discovery is shocking and a challenge to every religious and non religious person.

Only a person who believes in the Christian understanding of the bible will find this revelation profoundly affirming to their faith.

Reading Chapter 5 of Genesis you will read that there were 10 generations from Adam to Noah and the time of the global flood. What is amazing is when you look at the actual meaning of each name you find Gods plan for mankind.

Here is its:

Adam means MAN

Seth means APPOINTED

Enosh means MORTAL

Kenan means SORROW

Mahalalel means THE BLESSED GOD

Jared means COME DOWN

Enoch means TEACHING

Methuselah means HIS DEATH SHALL BRING

Lamech means DESPAIR

Noah means COMFORT or REST

And when you put all the 10 names together it says:

“Man is appointed mortal sorrow, but the Blessed God shall come down and teach that his death shall bring the despairing comfort and rest”

Source: http://www.khouse.org/articles/2000/284/

 

Mar 13, 2014 - Geo- Politics    No Comments

Jihadists to Christians in Syrian city: convert to Islam, pay up or be killed

Syria, March 04, 2014: A Jihadist group in control of the northern Syrian city of Raqqa has given Christians a devastating ultimatum: convert to Islam, pay the jizya tax and abide by a list of restrictions, or else risk being killed.

In a statement posted online, the Islamic State in Iraq and the Levant (ISIS) said it would give Christians protection if they paid the tax and agreed to its conditions, adding:

“If they reject, they are subject to being legitimate targets, and nothing will remain between them and ISIS other than the sword.”

More info at:   http://persecutedchurch.info/2014/03/12/jihadists-to-christians-in-syrian-city-convert-to-islam-pay-up-or-be-killed/

Mar 7, 2014 - God and the World    1 Comment

“I Asked God”

I asked God to spare me pain, and God said “No!”

He said, suffering draws you from worldly cares,

And brings you closer to me.

I asked God to make my handicapped child whole,

And God said, “No!” He said her spirit is whole,

Her body is only temporary.

I asked God to grant me patience, and God said,

“No!” He said that patience is a by-product of

Tribulation, it isn’t granted, it’s earned.

I asked God to give me happiness, And God said

“No!” He said, He gives me blessings; happiness

Is up to me.

I asked God to take away my pride, and

God said “No!” He said it is not for Him to

Take away, but for me to give up.

I asked God to make my spirit grow, God said,

“No!” He said I must grow on my own,

But He will prune me to make me fruitful.

I asked God if He loved me, God said, “Yes”.

He gave me His only Son who died for me, and

I will be in heaven someday because I believe.

I asked God to help me love others as much

As He loves me, And God said, “Ah finally

You have the idea.”

Feb 4, 2014 - Organic Farming    No Comments

Back to Eden – Organic Growth using Woodchips

Recently, Peter a friend from our church who has spent his working life as a horticulturist told me about the importance of using wood-chips on my vegi garden.

He then gave me a DVD called Back to Eden about how a guy in Washington State in USA uses wood chips and the amazing results he is seeing.

So here it is, I found the guy called Paul Gautschi on the internet and you can now watch the film online.

If you want to be amazed and you have a garden and you want to learn how to grow fresh organic food at home, this film is a must see!

Back to Eden 1h .42min documentary:  www.backtoedenfilm.com

 

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

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