Economic Warfare, Central Bank Desperation

[old steel]

What do you think?



https://www.youtube.com/watch?v=gMH9sfR6VAQ

[Serpo]

We Now Stand At The Precipice Of Global War And Financial Ruin. 10 comments (http://seekingalpha.com/instablog/29482055-gregory-mannarino/3646256-we-now-stand-at-the-precipice-of-global-war-and-financial-ruin#comments_header) Jan 15, 2015 8:32 PM

The stage has been set and we now stand on the brink of a major world event.
http://static.cdn-seekingalpha.com/uploads/2015/1/15/29482055-14213714430164435-Gregory-Mannarino.jpg
Russia has now retaliated against both the US sanctions and deliberate manipulation of the price of crude oil, (by the US and Saudi Arabia), in attempts to hurt the Russian economy.
Russia in response has now cut energy to six European countries, and now it's just a matter of time before a shooting war develops between the US and Russia.
What is really being set up is a "blame game."
The global economy is in free-fall, and this includes the economy of America which is not immune to this slowdown despite what our policymakers and the mainstream financial channels want you to believe.
Late last night the Swiss central bank de-pegged it's currency from the Euro because it knows that next week, (as has been speculated), the ECB will begin full on Federal Reserve style/Japan style QE. The Swiss bank also cut it's benchmark interest rate to negative.
The world central banks have now become so desperate that they are not only continuing to slash interest rates, but are going NEGATIVE.
The politics of all this is frightening.
As we all now stand on the edge of a global financial meltdown, our policymakers are going to push us into a world war. They are going to blame this war for the financial cataclysm which will soon be engulfing the entire world.
Then the real blame game will begin, when this push to war was the plan all along.
I have been screaming from rooftops for years telling of all these events which are now occurring, and they are now unfolding quickly in a cascade of unstoppable events.
It is my hope that you start to pay attention.
The issue is debt.
The global debt issue is the largest financial bubble in the history of the world. But it will become a resource issue for you directly.
As the debt bubble continues to crack and eventually burst, every fiat based currency will become worthless, therefore the global economy as we know it will cease to function.
There will be bank runs, price controls, chaos in the streets in every corner of the globe, a suspension of the Constitution, and Martial Law right here in the US.
The breakdown of the global debt based economic model will be the single most apocalyptic moment in human history...
Are you ready?

http://seekingalpha.com/instablog/29482055-gregory-mannarino/3646256-we-now-stand-at-the-precipice-of-global-war-and-financial-ruin

[sorryjoker]

:) That was predictable... :)

[Jerrylynnb]

I am having trouble with the concept of "just printing money" by the FED. I have always been told that every dollar in circulation (and in any bank account) came into existence as a loan, where some party, with an acceptable credit score, took out a loan for that dollar. I was under the impression that even the quantitative easing money was actually a loan to some party (kept secret) so that the nature of dollars (being a debt instrument by somebody somewhere with some level of acceptable credit risk) was kept intact, in spite of the massive amount of dollars so created.

If you have the same understanding, then, when pundits talk about "turning up the printing presses", don't they have to also identify, or propose, that there is somewhere a party willing to apply for, and accept, all that new money as a DEBT? To be paid back WITH INTEREST?

Because, if (and this is where I get really confused) the FED just printed money without having a debt on the books for that same amount of money, then, these new dollars (out of thin air) would be in circulation with all the other "legitimate" dollars (those based on bonafide "debt"), and no one could distinguish which dollars are REAL (backed by a promise to repay), and which ones are pure junk (created out of thin air, with nobody promising to pay back one thin dime). Doesn't that serve to pollute, or even destroy, the sanctity of dollar creation? Maybe sanctity is the wrong word - but you see what I'm getting at - all the dollars in existence have someone standing up and promising to pay back with interest before those dollars could be issued, but, now, if they issue new money frivolously, and nobody can tell which is which - that would have to immediately (within hours, or days) serve to destroy the confidence in the entirety of the world's supply of dollars, since any given dollar might be the frivolous kind, and no one could tell the difference. The FED would be destroying its greatest asset - the monopolistic power to issue dollars as debt instruments.

If anyone has a better understanding of what they mean by "turning up the printing presses", with respect to debt creation vs based on NOTHING, please explain it in terms that an ordinary american like me can understand.

[Hatha Sunahara]

I am having trouble with the concept of "just printing money" by the FED. I have always been told that every dollar in circulation (and in any bank account) came into existence as a loan, where some party, with an acceptable credit score, took out a loan for that dollar. I was under the impression that even the quantitative easing money was actually a loan to some party (kept secret) so that the nature of dollars (being a debt instrument by somebody somewhere with some level of acceptable credit risk) was kept intact, in spite of the massive amount of dollars so created.

If you have the same understanding, then, when pundits talk about "turning up the printing presses", don't they have to also identify, or propose, that there is somewhere a party willing to apply for, and accept, all that new money as a DEBT? To be paid back WITH INTEREST?

Because, if (and this is where I get really confused) the FED just printed money without having a debt on the books for that same amount of money, then, these new dollars (out of thin air) would be in circulation with all the other "legitimate" dollars (those based on bonafide "debt"), and no one could distinguish which dollars are REAL (backed by a promise to repay), and which ones are pure junk (created out of thin air, with nobody promising to pay back one thin dime). Doesn't that serve to pollute, or even destroy, the sanctity of dollar creation? Maybe sanctity is the wrong word - but you see what I'm getting at - all the dollars in existence have someone standing up and promising to pay back with interest before those dollars could be issued, but, now, if they issue new money frivolously, and nobody can tell which is which - that would have to immediately (within hours, or days) serve to destroy the confidence in the entirety of the world's supply of dollars, since any given dollar might be the frivolous kind, and no one could tell the difference. The FED would be destroying its greatest asset - the monopolistic power to issue dollars as debt instruments.

If anyone has a better understanding of what they mean by "turning up the printing presses", with respect to debt creation vs based on NOTHING, please explain it in terms that an ordinary american like me can understand.

Who's the biggest debtor in the world? It's the US Government. The money supply is the amount of total debt outstanding. When you take out a loan from the bank, the bank has the ability to 'grant you credit'. When they do, they put money in your account in exchange for an agreement by you to repay that loan with interest over a period of time. They will ask for 'collateral' (like your house or your car, so they have something to take in case you don't live up to your agreement to repay. Also, you take all the risk of being able to pay, the bank takes no risk at all. It costs them nothing to 'issue credit' but you have to pay them interest. And where does the interest come from? Somebody else has to create new money by borrowing it and spending it so you can earn enough to pay the interest on your loan. So if you understand compound interest, you will appreciate the fact that debt will always be rising because people have to repay debt with interest. And the only way to get enough to pay the interest is for someone else to borrow more money. Eventually the size of the debt gets so big it is unpayable. Bankers only issue money frivolously if they know the borrower cannot repay the loan. They did that by making 'liar loans' to people who were very risky borrowers. Banks are Usurious institutions and Bankers are usurers. If you understand the systemic usury in this system, then you know why the Catholic Church prohibited usury and why Islam still does.

Also, do some reading about the history of fiat money. You will discover that all fractional reserve Fiat money systems have self-destructed without exception. The terminal phase of a fiat fractional reserve system is turning up the printing presses because the interest burden is so high that it takes exponentially larger amounts of additional borrowing to pay the interest on the loans that are already outstanding.


Hatha