The deregulation of the financial system during the Clinton and George W. Bush regimes had the predictable result: financial concentration and reckless behavior. A handful of banks grew so large that financial authorities declared them “too big to fail.” Removed from market discipline, the banks became wards of the government requiring massive creation of new money by the Federal Reserve in order to support through the policy of Quantitative Easing the prices of financial instruments on the banks’ balance sheets and in order to finance at low interest rates trillion dollar federal budget deficits associated with the long recession caused by the financial crisis. Continue reading
Breaking up is hard to do, especially when it is with a tracking service like a financial institution. Sometimes you can make a clean break and other times you have to remain “just friends”.
The US government actually has a name for people who have no bank accounts – they call these folks “the unbanked”. The FDIC defines the unbanked as “those without an account at a bank or other financial institution and are considered to be outside the mainstream for one reason or another.” Another term is “the underbanked” – “people or businesses that have poor access to mainstream financial services normally offered by retail banks. The underbanked can be characterized by a strong reliance on non-traditional forms of finance and micro-finance often associated with disadvantaged and the poor, such as check cashers, loan sharks and pawnbrokers.” Continue reading
As is clear by this chart, inflation was virtually unheard of until the Creature from Jekyll Island the Federal Reserve took over. However, more importantly, things didn’t really start to get bad until the 1970?s right after Nixon took the nation off the gold standard in 1971. Since that time, America has seen a period of non-existent real wage growth and a huge gap grow between the rich and the poor ever since. Nothing like livin’ the debt slave dream!
… Louis: People say money makes the world go around, and they are right. Or as I tell my students, there are two basic ways to motivate and coordinate human behavior on a large scale: coercion and persuasion. Government is the human institution based on coercion. The market is the one based on persuasion. Individuals can sometimes persuade others to do things for love, charity, or other reasons, but to coordinate voluntary cooperation society-wide, you need the price system of a profit-driven market economy.
Doug Casey: And that’s why it doesn’t matter how smart or well-intended politicians may be. Political solutions are always detrimental to society over the long run, because they are based on coercion. If governments lacked the power to compel obedience, they would cease to be governments. No matter how liberal, there’s always a point at which it comes down to force – especially if anyone tries to opt out and live by their own rules.
Even if people try that in the most peaceful and harmonious way with regard to their neighbors, the state cannot allow separatists to secede. The moment the state grants that right, every different religious, political, social, or even artistic group might move to form its own enclave, and the state disintegrates. That’s wonderful – for everybody but the parasites who rely on the state (which is why secession movements always become violent).
I’m actually mystified at why most people not only just tolerate the state but seem to love it. They’re enthusiastic about it. Sometimes that makes me pessimistic about the future…
Note: This article was written by Daisy Luther and originally published at The Organic Prepper.
Last week I wrote an article in response to the media’s vilification of preppers in the aftermath of the horrible tragedy in Newtown, Connecticut. The article was quoted in an article on Yahoo.com, to my great astonishment, and that is when I saw how little most people understand about prepping. You can see in most of the 4492 comments the article received that many folks just don’t “get it”.
My inbox was filled with a barrage of hate mail and a number of people felt compelled to leave angry and rather ignorant comments on my website. I got messages from people that called me “batshit crazy”, messages from gun control advocates, messages from people who directly blamed me and all other preppers for the massacre, and even one particularly hate-filled email from a person who said “I hope that your kids are killed at the next school shooting.”All of this leads me to reconfirm my belief that people sincerely do not understand why we do what we do, and that ignorance leads to fear.
People fear what they don’t understand and hate what they can’t conquer. — Andrew Smith…
A business enterprise is solvent when its operations are supported by its after-tax cash flow. Should cash flow be temporarily insufficient, borrowing against accounts receivable is the classic remedy. With serial borrowing however, operations-plus-debt-service eventually becomes unsupportable by cash flow, real or anticipated. Creditors withdraw when they see this, it’s insolvency or near enough. The business closes, its assets are liquidated and the proceeds distributed among its creditors. This is what’s happening to the Continue reading, aside from the liquidation part. Debt repudiation by inflation—watering down the currency—holds such comeuppance at bay, at least for a while.
Ann Banhardt on The Hagmann & Hagmann Report, Sept 24, 2012.
Wobbly audio quality in parts of first half, but worth the perseverance.
Overview. The United States government has five interrelated motivations for destroying the value of the dollar:
- Creating money out of thin air on a massive basis is all that stands between the current state of hidden depression, and overt depression with unemployment levels in excess of those seen in the US Great Depression of the 1930s.
- It is the most effective way to meet not just current crushing debt levels, but to deal with the rapidly approaching massive generational crisis of paying for Boomer retirement promises.
- It creates a lucratively profitable $500 billion a year hidden tax for the benefit of the US government which is not understood by voters or debated in elections.
- It is the weapon of choice being used to wage currency war and reboot US economic growth; and
- It is an essential component of political survival and enhanced power for incumbent politicians.In this article we will take a holistic approach to how individual short term, medium and long term pressures all come together to leave the government with effectively no choice but to create a substantial rate of inflation that will steadily destroy the value of the dollar…via FINANCIAL SENSE….
As Greece finally succumbs to it’s financial collapse many Greek towns are turning to a bartering system that is similar to what emerges after a SHTF or post-apocalyptic world.
Everyday Greeks are now dropping the Euro at a lightning fast , even before this Sunday’s election, and adopting a bartering system to buy and sell books, eggs, clothes, kids toys and every day essentials that are necessary…
Can you manage your money? A personal finance quiz.
Are you financially literate enough to manage your own money? Teenagers say less than half of their families have had a discussion about money management, according to a 2011 Junior Achievement/Allstate Foundation survey. Another poll by Yahoo Finance found that 37 percent of adults have no retirement savings, and 38 percent plan to live off Social Security after retirement. When it comes to making good decisions about money, are you a beginner, a financial whiz, or somewhere in-between? Take the quiz to find out.
There is no doubt that the elite have always sought to carefully manufacture news and to control the beliefs of the masses through their interests in funding education and in owning media distribution channels for centuries. There is a wealth of history that chronicles the elite’s desires to control and sway public opinion by manufacturing news versusthe honorable journalism pursuit of reporting news in a fair and accurate manner. For example, in 1917, Congressman Oscar Callaway stated, as documented in the Congressional Record: Continue reading
…It’s getting ever harder, less private, and more hazardous to deal in Federal Reserve Notes. We’re being unsubtly nudged toward the use of noncash techniques — mainly bank instruments and Electronic Funds Transfers — for our routine dealings. Inasmuch as that concentrates the State’s targets for snooping and predation, it suits our political masters very well… via Liberty’s Torch: King Cash.
…The dollar was a median step towards a newer and more corrupt ideal. Its time is nearly over. This is open, it is admitted, and it is being activated as you read this. The speed at which this disaster occurs is really dependent on the speed at which our government along with our central bank decides to expedite doubt. Doubt in a currency is a furious omen…
… Cash is created out of thin air by the central bank of the country which is often privately owned. The central bank can just have it printed for the cost of printing, by the government or privately. The central bank then uses this cash it creates out of thin air to buy interest-bearing public debt in the form of government bonds.Government debt is perpetual and thus interest paid on it is perpetual. Therefore a good definition of cash might be: evidence of public debt on which taxpayers will be paying interest forever…
Today billionaire Eric Sprott told King World News that a staggering 500 million ounces of paper silver traded hands during the takedown in the metals this week. Eric Sprott, Chairman of Sprott Asset Management, had this to say about what took place the day of the plunge in gold and silver: “I can only imagine it’s the same forces that for the last twelve years have been at work in the gold market, trying to keep the volatility very large on the downside. As you are aware, we hardly ever get days when you get an intraday $100 rise in gold. When we look back at what happened (on Wednesday) we saw huge sell orders in gold and silver.”
“When I look at the silver market in particular, in a 30 minute span we had sellers of 225 million equivalent paper ounces, in a market that in one year the silver miners only produce 800 million ounces. So again, it’s the paper markets overwhelming the physical market. It’s stunning to me that on a day like Feb. 29th we traded 500 million ounces of silver. No rational person could believe it had anything to do with the real market for silver.... Continue reading
Is the US Monetary System on the Verge of Collapse? – David Galland, Casey Research – September 20, 2011 8:57pm GMT
Tune into CNBC or click onto any of the dozens of mainstream financial news sites, and you’ll find an endless array of opinions on the latest wiggle in equity, bond and commodities markets. As often as not, you’ll find those opinions nestled side by side with authoritative analysis on the outlook for the economy, complete with the author’s carefully studied judgment on the best way forward…