Americans, Cataclysmic Financial Event, Central Bank, Economic, Federal government of the United States, Financial, George Soros, Housing Prices, IMF, Preparation, U.S. Government, United States, Wall Street, World Gold Council, World's Central Banks
Never before in recorded history has humankind faced a crisis like the one which lies directly in our path.
The American people are more frustrated and more angry than at any other time in modern history. This upcoming election is only going to cause Americans to become even more angry and even more divided.
An unstoppable cataclysmic fiscal event is rapidly approaching.
Make no mistake about it, those holding positions at the highest levels of government are well aware that a monster is coming our way-but there is a paradox.
Although this single event is going to leave the vast majority who survive desperate and destitute, never before has there been a greater opportunity for those with little or no net worth to become massively wealthy.
It is at times like this where fortunes (and lives) are lost, and also made.
Unfortunately, the American public is never told to prepare because authorities never want “to panic” the general population.
We are always the last to know, and that stinks.
So don’t wait for someone to come on the television and announce that a crisis is happening.
If you wait that long, it will be too late.
Instead, open up your eyes and think for yourself.
We all need to work hard to get prepared for the coming crisis while we still can.
As you can see, Wall Street insiders, the U.S. government and the central banks of the world are busy getting prepared.
Don’t put your head in the sand.
The warning signs are there and time is running out.
- Startling Evidence That Central Banks And Wall Street Insiders Are Rapidly Preparing For Something BIG (judgementofamerica.wordpress.com)
- Bernanke’s Stimulus Simply Following Global Elite’s Directives to Implode the US Dollar (thedailysheeple.com)
- The Long Wave Versus the Printing Press: Central Banks Go All-In (safehaven.com)
- Central Banks Bailout Global Financial System, Stalling Debt Riots (thedailycrowd.com)
- Should We Start To Panic? Startling Evidence That Central Banks And Wall Street Insiders Are Rapidly Preparing For Something BIG (investmentwatchblog.com)
- Central Banks of the World Flying By the Seat of Their Pants (smbmatters.wordpress.com)
Bond, Central Bank, Counterfeiting, Duration Mismatch, Federal Reserve, Federal Reserve System, Fractional reserve banking, Government debt, Government Spending, Monetary Policy, Money Supply, Murray Rothbard, New York Federal Reserve Bank, Reality, U.S. Government, United States, United States Treasury security
Here is where we stand.
It is mathematically impossible for the U.S. government to pay off the U.S. national debt. EVER. You see, the U.S. government now owes more dollars than actually exist. If the U.S. government went out today and took every single penny from every single American bank, business and taxpayer, they still would not be able to pay off the U.S. national debt.
If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt–and then, ONLY IF, we didn’t increase the debt by a SINGLE penny.
Now why doesn’t the U.S. government just fire up the printing presses and print a bunch of money to pay off what we owe?
Well, for one very simple reason. The U.S. government does not issue U.S. currency – the Federal Reserve does. Pull a dollar bill out and look at it. It says “Federal Reserve Note” at the top. The Federal Reserve is a private bank. It is owned and operated, for profit, by international bankers.
When the U.S. government needs more money, it cannot simply create the needed money.
Instead, when the U.S. government runs out of money (which happens a lot these days) it has to BORROW IT by going over to the Federal Reserve and asking them for green pieces of paper called Federal Reserve Notes.
The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves.
So that is how the U.S. government gets more green pieces of paper called “U.S. dollars” to put into circulation. But by doing so, they get themselves into even more debt which they will owe even more interest on.
Every time the U.S. government borrows from the federal reserve, the national debt gets bigger and the INTEREST on that debt gets EVEN bigger.
Are you starting to get the picture?
To make the situation worse, NOBODY, not even the federal reserve, has a clue how much money even EXISTS in the United States today because our financial system is based on fractional reserve banking.
When you go over to your local bank and deposit $100, your bank doesn’t keep your $100 in the bank. Instead, only a small fraction of your money stays at the bank. The bank lends out the rest to someone else. If the “someone else” then deposits the money that was just borrowed at the same bank, that “same bank” can loan out most of that money once again. In this way, the amount of “money” quickly gets multiplied. But in reality, only $100 actually exists. The system works because we do not all run down to the bank and demand all of our money at the same time. (Not that it could never happen.)
The New York Federal Reserve Bank, explains fractional reserve banking like this….
“If the reserve requirement is 10%, a bank that receives a $100 deposit may lend out $90 of that deposit. If the borrower then writes a check to someone who deposits the $90, the bank receiving that deposit can lend out $81. As the process continues, the banking system can expand the initial deposit of $100 into a maximum of $1,000 of money ($100+$90+81+$72.90+…=$1,000).”
So much of the “money”counted on bank books as assets is basically made up out of thin air.
And, in fact, most banks have no reserve requirements at all on savings deposits, CDs and certain kinds of money market accounts. Primarily, reserve requirements apply only to “transactions deposits” – essentially checking accounts.
Banks are freer today to dramatically “multiply” the amounts deposited with them than ever before. NONE of WHAT CREATED THE BANKING CRISIS OF 2008 has been fixed.
The U.S. government CAN GO OUT AND and DEMAND every SINGLE dollar from EVERY banks, businesses and individual in the United States and it would not be able to collect 14 trillion dollars. IT COULDN’T COLLECT 8.5 trillion dollars.
The Federal Reserve Banking System is a game designed which the United States Government CAN’T WIN.
We could solve this problem by shutting down the Federal Reserve and restoring the power to issue U.S. currency to the U.S. Congress (which is what the U.S. Constitution calls for). But the politicians in Washington D.C. are not about to do that.
The politicians have become more concerned with their own perpetuation than with service to society. As they blunder from crisis to crisis, they blame markets and freedom for the problems created by poor central planning and structure within the financial system.
Giving banks a monopoly over the initial allocation of credit and money enriches the banks at the expense of society. Banks and bankers — who produce nothing — allocate resources to their interests. The rest of society — including all the productive sectors — get crumbs from the table. The market mechanism is perverted, and bent in favour of the financial system.
Such a system is unsustainable. The subsidization of incompetence breeds more incompetence, and weakens the system, whether it is government handing off corporate welfare to inept corporations, or whether it is the central bank bailing out inept financial institutions. The financial system never learned the lessons of 2008; MF Global and the London Whale illustrate that. Printing money to save broken systems just makes these systems more fragile and prone to collapse. Ignoring the market mechanism, and the interests of the wider society to subsidise the financial sector and well-connected corporations just makes society angry and disaffected.
Between fractional reserve banking, extreme leverage, mismarking of books, questionable derivatives and rehypothecation is there ANY possibility of a free market?
What if these mechanisms are contrivances PURPOSEFULLY designed to skim off everything left to skim while driving the financial system the point of collapse?
Even if a financial collapse wasn’t planned, now that the endgame is clearly in sight…
- Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand (blacklistednews.com)
- Where does money come from? The giant Federal Reserve scam that most Americans do not understand (antioligarch.wordpress.com)
- Why A Debt Based Financial System Will Always Fail In The Long Run (GLD, SLV, UUP, UDN, XLF) (etfdailynews.com)
- Are we AT the end of the road? (elkhartcountygrassrootshub.wordpress.com)
- The Giant Federal Reserve Scam That Most Americans Do Not Understand (wealthwire.com)
Accounting, Budget, Capitalism, Corporate tax, Corporation, Cronyism, Free Market, Income tax, Regulation, Restrictions, Richard Mourdock, Tax, Tax rate, Taxation, U.S. Government, United States, United States Senate
Richard Mourdock, GOP candidate for Senator, says government overregulation is CRIPPLING major sectors of our economy, from energy to health care.
Bill Buckler, author of The Privateer, agrees with Richard Mourdock. In an article for Zerohedge, a website credited with bringing the controversial practice of flash trading to public attention in 2009, Buckler writes that the cost of government regulation is a staggering $1.75 TRILLION per year!
The Competitive Enterprise Institute (CEI), a small “think tank” in Washington
DC, puts out an annual report called: Ten Thousand Commandments” The report deals with the regulatory agencies of the US federal government and
the cost of the regulations they continually introduce – and enforce. This
report would be typical of the regulatory function of pretty well every
government in the world.
In their Ten Thousand Commandments 2012 report which was released in June, the CEI estimates the cost of US government regulation at $US 1.75 TRILLION. That is just under half (48 percent) of the budget of the federal government. It is almost ten times the total of all corporate taxes collected and almost double the total collected from individual income taxes. It is also one-third higher than the total of all pre-tax corporate profits. It is the hidden cost of doing business in an interventionist economy.
The fact that the cost of complying with these regulations is substantially higher than the total of corporate profits is a stark illustration of the end result of economic intervention. That end result is CAPITAL CONSUMPTION.
More from Bill Buckler here HERE
“Ten Thousand Commandments” is a MUST read.
- The Cost Of “Intervention” (illinoisreview.typepad.com)
- Obama’s Regulation Con (americanthinker.com)
- House GOP Regulatory Reform Bill: new regulations are suspended until unemployment reaches 94 percent ? (jobmarketmonitor.com)
- Obama vs. Job Creation (johnmalcolm.me)
- DEBT PARTY USA – 5 Straight Years Of $1 Trillion Deficits! (dailybail.com)