The Creature from Jekyll Island - book

Where do they borrow the $10,000 from???

EDIT: or more accurately where does the bank get the $10,000 from to lend to them?

 

Thanks for the link.

For anyone interested the films: 'Money as Debt' & 'Money as Debt 2' explain all of this in a very symplistic and detailed way also. I highly recommend both vids

Great thread!

 

Indeed, the holy grail of modern science turns out many a fiction also. Once 'a fact' is declared by a suitable authority, it becomes fact for most minds.
This often includes myself. The doctrine of authority is extremely powerful.
It is interesting for 'the very few', to examine the 'proof' to some of the claims. The fictions are only detectable to a very small percentage of the population.
It also requires a process of becoming aware that 'fact' could well be 'fiction'.

Just the very basics of conspiracy are impossible enough for the average Joe to work out.
I have witnessed police 'agent provocateurs' in action, here in Australia in broad daylight. [ en.wikipedia.org/wiki/Agent_provocateur ]
In one case, I felt sickened at the time, and never wish to see what I saw again.
The police 'agent provocateurs' were attempting to promote violence at a public protest.
In other words, they were doing their job.
It happens all around the world. An old trick.
Yet the general public is not in on this old tactic, in fact it does not exist in the mind of the average Joe.
It was reported in Canada, although the police's official admission did not explain the officer with a rock in his hand, nevertheless, that coverage was an extremely rare occurrence.

[youtube]http://www.youtube.com/watch?v=gAfzUOx53Rg[/youtube]
"The police refused to throw stones" .....sorry but that is just funny...Lol.

It is not a subject mainstream press addresses for the most part, for reasons obvious to the few.

How does the average Joe even deal with the notion of police 'agent provocateurs'? How does average Joe explain it?
Average Joe can't explain it, and understandably moves on to a topic he feels he can explain. As seen on the TV.

Police 'agent provocateurs'= the basics.

Conspiracy - Australia's judges deal conspiracy 'day in day out'.

..and NO, I won't go explaining examples of orthodox science's fictions. This forum is not the place. It requires a certain level of consciousness and allot of time and devotion.


Regards, LoB

 

Its hard to change most peoples view on our financial system so what i have learnt is use all this information to make better investment decisions tomorrow.......

 

This is on the right track. Forcing down the interest rate below it's natural rate has many consequences, most of them bad.

It's interesting to note though how the general population demands it thinking it is a good thing for them (witness one federal election a few years ago with Howard getting re-elected promising to keep them low and more recently people squealing like stuck pigs when the rate went up by less than one percent).

Politicians feel pressure to knock the rate of interest down and this is transferred to the central bank. Although for the past year they have been acting a bit more responsibly.

 

Thank ou all for your posts on this subject.

All geat reading.

You are all on the right path.

Enjoy the journey

 

We have one and all, ss or not, heard by now that Ben Bernanke is deep into "quantitative easing" a form of debt monetisation.

What it means is:

1. An exchange of IOUs. The Fed gets government bonds, the government gets Fed notes. Lots of them.

2. This is inflationary as everyone knows. The purchasing power of those new notes is a hidden tax and is stolen from the taxpayer.

So how does this help the government and who are the winners and losers? This is a perplexing question at first blush since everyone thinks that QE is ADDING MORE DEBT and not reducing it. How does it help the debt problem?

How can raising the debt ceiling as a result of QE be any good?

The answer lies in the following observations.

A. The debt that the USA owes to OTHER COUNTRIES is paid off easily via QE. The inflated money supply decreases the debt holders purchasing power so Chinese held US dollar reserves are worth less.

B. Government bonds are usually never paid out. What happens is that the government merely sells another bond to replace the one being paid out ie. The debt is rolled over. With QE the bonds can be paid out. Hence the term debt monetisation.

C. The governments debt to the Fed is ILLUSORY! All the talk of debt ceilings etc is a red herring. The Fed holds a huge amount of credit extended to the government. The interest on this debt is not entirely gobbled up by the bankers. The truth is that the Fed bankers just take a small cut or handling fee out of this interest and the remainder is returned to the treasury to spend or extinguish debt according to policy. The Fed and government beast is a two headed creature in cahoots in a big way.

Note that Australias Reserve Bank operates the same way. It is a corporation that returns much of the interest to the government minus its own cut.

The net losers are anyone holding US dollar reserves/notes. That means foreign countries and the American taxpayer. The only winners are the Fed with associated bankers and the government juggernaut.

Just a few little insights from reading in the past month or so, much of it from Jekyll Island.

 

Note that the interest payments on the debt the government owes ie the entire money supply of the US is paid out of taxes.

The US income tax was introduced at the same time the Federal Reserve was enacted.

This was not a coincidence.

Until then all government income was derived from other taxes, excise, tariffs etc.

 

thanks intelligencer, I'd forgotten about the link bw Fed Res Act and income tax.

A logical conclusion to look for is the foreseeable consequences of a failure of the creditors to buy long term T bonds, already happening. The muni bonds are failing too.

Last read, significant creditors, like Russia are mostly in 3 month maturity T bils

 

First QE I think was about March 2009

When did/will the Fed become the largest holder of long term T bonds?

I seem to recall it was late last year.

? next is the short term T bonds and municipal bonds

I'd be looking for a swan/circus at this point, maybe a colour revolution or an attack.