Socio-Economics History Blog

Socio-Economics & History Commentary

Egyptian General (Ret.) Muhammad Khilf on Al-Mihwar TV (Egypt): 9/11 Was An Inside Job!

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May 17, 2010 Posted by | GeoPolitics, History | , , | 6 Comments

Bob Chapman: Gold Going to $7500/ounce by The End 2011 !

May 17, 2010 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , | 2 Comments

Jim Marrs: New World Order, ‘Nazification’ of America, Man Made Diseases, HAARP, Chemtrails, Alien Agenda and More…..

May 17, 2010 Posted by | Economics, GeoPolitics, History, Social Trends | , , , , , , , , , , , , , , , , | 7 Comments

Ron Paul: Stop the Bailout of Foreign Banks!

May 17, 2010 Posted by | Economics | , , , , , , , , , , | Comments Off

IMF Managing Director: ‘Global Currency Issued By A Global Central Bank’ !

  • I have warned repeatedly: the agenda is a supra national Global Central Bank issuing a One World Currency. The Illuminist banksters are taking over and will force the world into their New World Order, Global Fascist Police State. They are now initiating steps for a super merger of the EU and NAU (North American Union: America, Canada and Mexico). Combined they muster about 50% of global GDP.
     
  • They will brow beat the rest of the world into their hegemony. There is no doubt many countries will resist. So, war is inevitable! Look what happened to the Polish elite when they resist entering the EU and Eurozone. Japan will likely go along as the central banksters have neutered Japan since WW2. Venezuela, Iran, North Korea, Syria, Myanmar… will not go along. Why do you think there is so much demonization of these countries? The western corrupt MSM is painting these countries as the New Axis of Evil !
     
  • Here is the quote from Dominique Strauss-Kahn, Managing Director of the International Monetary Fund last week:
     
    “Finally, in principle, a new global currency issued by a global central bank with robust governance and institutional features could provide a nominal anchor and risk-free asset for the system independent of national currencies. This global central bank could also serve as a lender of last resort.”
     
  • By controlling fiat money and interest rates, the Illuminati rules the world. The Babylon Whore and the Revived Roman Empire is taking shape! ’666′ is one major step closer!

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May 17, 2010 Posted by | Economics, EndTimes, GeoPolitics, Social Trends | , , , , , , , , , , , | 1 Comment

Eurozone Rescue: Nuking Savers To Bailout Bankers!

  • This is an interesting article by Daniel R. Amerman. It highlights what I have been saying for some time now. The banksters are taking over and are ‘raping’ the sheeple! Excerpts:
     
    To “save” the euro, the European Central Bank (ECB) chose what some economists were calling the “nuclear option”. …. As we will review herein, the  ECB’s choice of the “nuclear option” means:  1) the door has been opened for unlimited direct monetary creation by the ECB; 2) the money will be effectively used to pay for an outside-the-budget, unlimited bailout of major European and global banks;…
     
    There are three powerful incentives for US readers to understand the contents of this article. 1) In this tightly interlinked world, if the European economy plunges down – so does the US economy. 2) We’re the blueprint, and face quite similar risks. 3) There he goes again! Ben Bernanke just bravely stepped forward to once again take on unlimited risks for the citizens of the United States, this time in the form of currency swaps, thereby imperiling the value of our money and savings.
      
    Two Bailouts
    The starting point for deciphering what just happened in Europe is to understand that we have not one, but two bailouts going on. There is the approximately $1 trillion (750 billion euro) loan package put together by European Monetary Union members as well as the International Monetary Fund. Sometimes referred to as the “shock and awe“ rescue package, …
     
    The other bailout was (as in the United States) the real bailout, the one that really matters, and there is no price tag put on it.  There is no price tag because there is no limit on what can be spent. “The European Central Bank said it will buy government and private bonds as part of an historic bid to stave off a sovereign debt crisis that threatens to destroy the euro” (Bloomberg).  This type of purchase was prohibited when the ECB was created – because of its potentially dire inflationary consequences.    
     
    Bailing Out Banks Through Direct Monetary Creation
    To understand the rescue, we need to understand who the beneficiaries are, and Greece is arguably not the main beneficiary. For the European Central Bank is not buying the securities directly from the governments or the private issuers — it’s buying them from the banks. The banks are in deep trouble, so the European Central Bank takes its power – which is the stewardship of the value of money for the citizens of Europe – and uses this power to buy the banks out at on an unlimited basis.   The pricing is more attractive than what the market offers (which is the point of the intervention).  So the banks either don’t lose money at all, or they take much lower losses than they would through selling to normal buyers.  The ECB is making an unlimited amount of banking losses disappear.  As others have commented, the euro zone rescue plan is not really a bailout of Greece, but rather, a bailout of Europe’s (and America’s) banks.
        …..
    Financial Nuke Blueprint Summary
    Here’s a quick summary of the Federal Reserve blueprint which the European Central Bank is using for its own “rescue”:
     
    1. Invoke emergency measures and do the opposite of what a central bank is supposed to do:  create great big of gobs of money and throw the largesse around wherever you like.  The obsolete term for this is “cranking up the printing press”, but this goes far beyond any printing press capabilities, as physically printing the hundreds of billions of euros or dollars at the speed with which they are being created would likely melt down a press.
     
    2. Take those vast sums of money, and use them to entirely bail the banks and bankers out of their bad investments.  There’s no budget, no legislative hearings and no formal rescues or bailouts to be debated or repaid.  Just pay the banks more than the market says the investments are worth, and let the bonuses continue to flow!
     
    3. The catch is that the new money can’t actually be spent, or the public might catch on to what’s happening when the cost of bread goes through the roof.  Being the ungrateful sort, however, the banks are exactly the type who would take their rescue money and go spend it if there was more money to be made that way.   So unlimited money is made available to bribe the banks, and keep the banks’ money safely inside the corral (i.e. “sterilized”). 
     
    4. The more money the banks get, the less real economic investment assets they have, and the bigger the portion of their assets that consist of nothing more than the monetary creation ability of the central banks. 
     
    5. Meanwhile, the fundamental problems that led to the crisis in the first place are still there, and the pain of dealing with them has been deferred into the future.  At which time, they are likely to blow up worse than ever because delaying action never does help these things – but the focus of these emergency actions are about today.  Tomorrow can take care of itself.
     
    6. If you are a banker or politician, and if the fundamental problems do blow up much worse down the road – so what?  The end result is the same, but you’ve kept what you think is one of the best jobs in the world in the meantime.
     
    7. On the other hand, if you are a member of the general public, and if there had been no rescue packages, then there would have been a terrible price today, but at least you would have had your savings to fall back on.  Thanks to the brilliance of central bankers and rescue packages however, this way when things do blow up, the economic damage is worse than ever, job losses are bigger than ever, and the value of your savings and retirement accounts just went “poof”, too.
     
    8. Good thing the general public has no idea what these economists are really doing, eh?  (And they never will, unless articles like this are circulated more widely…  if you find this outrageous, tell as many people as you can about it.)

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May 17, 2010 Posted by | Economics, Social Trends | , , , , , , , , , , , , , | Comments Off

Roubini: US Faces Inflation Or Default!

  • The FedRes will go the inflation route. Helicopter Ben has hinted at this many times. However, Uncle Sam will hide inflation with their manufactured statistics. They will fail when US go into hyper-inflation. Think 10% inflation month over month. Professor Roubini:
      
    Financial crises have occurred very often in history. They are caused by unsustainable bubbles that go bust, and from excessive risk-taking and debt-leveraging by the private sector during the bubble. Then in the wake of, and as part of the response to, the economic downturn, government debts and deficits grow to unsustainable levels that can lead to default or inflation if not corrected. The crisis we are going through now follows this pattern.
     
    Today there is a lot of talk about “de-leveraging”, yet the data shows that de-leveraging has barely begun. Debt ratios in the corporate sector as well as households in the US have essentially stabilised at high levels.
     
    At the same time, we are seeing a massive “re-leveraging” of the public sector with budget deficits on the order of 10 per cent of GDP. The IMF and OECD are projecting that the stock of public debt in advanced economies is going to double and reach an average level of 100 per cent of GDP in the coming years.
        …..
    …. we have decided to socialise some of the private losses in the financial, corporate and housing sectors and put them on the balance sheet of the government.
     
    Raising taxes
    So, there is a massive buildup of public debt. And the lesson of history is that unless this buildup of sovereign debt is tackled eventually by raising taxes and controlling spending, then there are only two outcomes: default or high inflation.
     
    Historically, we have seen a series of defaults and sovereign debt crises in both advanced and emerging market economies. If you are a country like the US, the UK or Japan that can monetise its fiscal deficits, then you won’t have a sovereign debt event but high inflation that erodes the value of public debt. Inflation is therefore basically a capital transfer from creditors and savers to borrowers and dissavers, essentially from the private sector to the government.
      
    While the markets these days are worrying about Greece, it is only the tip of the iceberg, or the canary in the coal mine of a much broader range of fiscal crises. Today it is Greece. Tomorrow it will be Spain, Portugal, Ireland and Iceland. Sooner or later Japan and the US will be at the core of the problem, shaking the global economy.
     
    We need to recognize that we are in the next stage of financial crisis. The coming issue is not private-sector liabilities, but public-sector liabilities.
     
    Revived economic growth alone will not generate enough tax revenue to relieve this sovereign debt crisis. Fiscal deficits are huge and structural. They are not due solely to a cyclical downturn in growth but to long-term commitments such as pensions, social security and health care. To avoid default or high inflation, the advanced economies will require some combination of raising revenues through taxes and cutting government spending.
     
    In Europe, where tax rates are already very high, the right adjustment is cutting spending instead of raising taxes further. In the US, the average tax burden as a share of GDP is much lower than in other advanced economies. The right adjustment for the US would be to phase in revenue increases gradually over time so that you don’t kill the recovery while controlling the growth of government spending.
     
    Political gridlock
    What worries me most is the political gridlock in Washington. While everyone agrees that $10 trillion (Dh36.7 trillion) deficits (by the Obama administration’s own estimates) for the next decade are not sustainable, there is no political will to act. The two parties are completely divided. Effectively, the Republicans are against any form of revenue increases. The Democrats are against spending cuts, especially of entitlements.
     
    If the Republicans take control of the House of Representatives in the next election and refuse any revenue increases while the Democrats veto spending cuts, the path of least resistance will be runaway fiscal deficits which will then be monetised by the Federal Reserve, which has already embarked on this path. In just the last year alone, the Federal Reserve has bought $1.8 trillion of Treasury securities and agency debt, a course that will inevitably lead to high inflation if sustained. It is what is popularly known as printing money.
     
    In Greece (with yields higher than 12 per cent on two-year bonds) or Spain or Portugal, the bond markets are forcing an adjustment. In spite of the recession, the markets are telling them to either straighten out their problems or go bankrupt.
     
    Unfortunately, there is no such adjustment being forced upon Washington at the moment because the bond market has not woken up to the dangers ahead. You can borrow at a zero percentrate on the short end and 3.6 per cent on the long end. As a result, the political system is going to resist fiscal consolidation. This means the risk of something serious happening in the US in the next two or three years is significant.

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May 17, 2010 Posted by | Economics | , , , , , , , , | Comments Off

Jim Rogers: Global Currency Crisis Will Cause Gold To Go Through The Roof!

May 17, 2010 Posted by | Economics | , , , , , , , , , | Comments Off

Rick Santelli: ‘There’s Not Enough Physical Gold To Satisfy All The Paper Contracts!’

  • Santelli is the Man! He still has the intestinal fortitude to tell the truth unlike the many shills on financial TV.

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May 17, 2010 Posted by | Economics | , | Comments Off

David Icke: Assassination of Polish Elite, HAARP and Haiti Earthquake!

May 17, 2010 Posted by | GeoPolitics, History, Social Trends | , , | 8 Comments

   

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