MONEY: It already IS bankrupt

Wednesday, May 21, 2014

http://www.zerohedge.com/news/2014-05-14/what-happens-when-america-goes-bankrupt

*** begin quote ***

‘Buddy,’ I remember thinking, ‘America isn’t going bankrupt. It already IS bankrupt.’

Just so that we don’t mince words, my dictionary defines ‘bankrupt’ as “any insolvent debtor,” i.e. a debtor whose liabilities exceeds assets.

That’s the US government, by its own admission.

As we’ve discussed before, the US Government Accountability Office (GAO) publishes financial statements each year in which they list all official government assets and liabilities.

The liabilities far exceed the assets. Big time. And the hole is getting deeper each year.

At this point the government’s net worth is roughly NEGATIVE $17 trillion, about 110% of GDP. That’s textbook insolvency.

The only reason the US government is still able to service its debts is because they are borrowing money just to pay interest… and because the Federal Reserve keeps printing money to buy up US debt.

*** end quote ***

Some very ugly chickens are coming home to roost.

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MONEY: California dreaming of the Bank of North Dakota

Friday, May 16, 2014

http://www.opednews.com/articles/Robbing-Main-Street-to-Pro-by-Ellen-Brown-Banking_Jerry-Brown_Public-Banks-140507-488.html

OpEdNews Op Eds 5/7/2014 at 14:28:58
Robbing Main Street to Prop Up Wall Street: Why Jerry Brown’s Rainy Day Fund Is a Bad Idea
By Ellen Brown (about the author)

*** begin quote ***

There is another alternative — one that California got very close to implementing in 2011, before Jerry Brown vetoed the bill. AB750, a bill for a feasibility study for a state-owned bank, passed both houses of the state legislature but the governor refused to sign it. He said the study could be done by the Assembly and Senate Banking Committees in-house; but 2-1/2 years later, no further action has been taken on it.

*** and ***

That is not just California dreaming. There is already a highly successful precedent for the approach. North Dakota is the only state with its own state-owned depository bank, and the only state to fully escape the credit crisis. It has boasted a budget surplus every year since 2008, and its 2.6% unemployment rate is the lowest in the country. Contrast that to California’s, one of the highest.

In a 2009 interview, Bank of North Dakota President Eric Hardmeyer stated that when the dot-com bust caused North Dakota to go over-budget in 2001-02, the bank did act as a rainy day fund for the state. To make up the budget shortfall, the bank declared an extra dividend for the state (its owner), and the next year the budget was back on track. No massive debt accumulation, no Wall Street bid-rigging, no fraudulent interest-rate swaps, no bond vigilantes, no capital appreciation bonds at 300% interest.

*** end quote ***

I think there is a HUGE barrier to establishing any “State Bank”.

The crony capitalists give campaign contributions. That’s the People’s tax money stolen by the Gooferment and transferred to Wall Street and Big Banks. And, portion is kicked back to the politicians and bureaucrats.

All very “legal”.

That’s what’s going to stop the “State Bank” movement cold!

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MONEY: What growth? In the money supply!

Wednesday, April 30, 2014

Fed Cuts Bond Buys, Sees Growth Pickup

The Federal Reserve said it would reduce its mortgage and Treasury bond buying program to $45 billion per month, while pointing to a growth pickup after a bad winter and sticking to previous guidance it has given on the outlook for short-term interest rates.

The steps were widely expected by investors before the meeting and represent a continuation of the monetary policy strategy laid out by Fed Chairwoman Janet Yellen and former Chairman Ben Bernanke in the last few months.

The Fed’s move came after a report that showed the U.S. economy barely grew in the first quarter. Fed officials acknowledged the first quarter slowdown was worse than expected by saying activity “slowed sharply.” Previously they had just said activity merely slowed.

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What marketplace are they watching?

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MONEY: Inflation = 2, 6, or 10 percent?

Friday, April 25, 2014

http://dailyreckoning.com/the-art-of-central-banking/

The Art of Central Banking
by Kate Incontrera.
Posted Apr 16, 2014.

*** begin quote ***

What is the inflation rate? Now, you think that’s just quantity, right? Just add up stuff. Anybody can do that. But it’s not that easy. There are lots of things go on in deciding what to put into that basket, and if you work hard enough, you can get that number anywhere you want it.

And the feds have done a great job at that. They have redone the way they calculate the inflation rate twice in the last 30 years and – guess what? – Each time, they’ve gotten a lower number. How do you like that? What a coincidence.

Right now, we have an inflation rate of about 2 percent. If you did it the way they did it in the ‘90s, you’d have 6 percent. Okay, that’s 4 percent difference, but it’s – you know, it’s three times the rate that we’re working from. And, if you did it the way they did it during the Carter Administration, you’d have an inflation rate of almost 10 percent. That’s five times the number we’re working with.

Now, here’s the question. Each time each of these numbers was done by a group of economists, the brightest and best in the country. Now, which one of these groups was a bunch of dunderheads? One of them was! Two of them were! How come? How are you supposed to know that? Which one is right?

*** end quote ***

The FED is the OPEC of the Big Banks.

The little guy doesn’t stand a chance.

Prior to 1913, gold was money and the discipliner of the Gooferment. After 1913, the Big Banks enabled Big Gooferment and were rewarded with a license to steal.

The part that bothers me is that the poor, the elderly, and those on fixed income are being robbed and the banisters, union “leaders”, politicians, and bureaucrats are rolling in dough.

Argh!

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MONEY: Third Anniversary of Conviction & Still No Action

Sunday, April 13, 2014

Closing Remarks:
As another year grinds past, thank you for your forced patience to recover your wrongfully seized property. I wish there was some action to take, but waiting is our only option. Many thanks for your continued support. For it is only by banding together and adopting a free and independent currency that provides us with “just weights and measures” that we will be able to throw off the yoke of a manipulated monetary/tax system and generate a peaceful and prosperous society.

Thank you again for all your efforts to return America to value – one dollar at a time!

Bernard von NotHaus
Monetary Architect/Editor
Editor@LibertyDollar.org

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Don’t mess with the powers that be!

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MONEY: Gold and silver?

Thursday, March 27, 2014

SEC Set to Alter Stance on Money Funds
U.S. securities regulators are preparing to exempt a majority of money-market mutual funds from a central plank of rules intended to curb risks in the $2.6 trillion market, according to people familiar with the agency’s discussions.

The Securities and Exchange Commission is expected to broaden an exemption for mom-and-pop retail investors from requirements that certain money funds abandon their signature $1 share price and float in value like other mutual funds. Supporters of a floating share price argue it would train investors to accept slight fluctuations in the value of their shares and so not panic if they fall below the $1 price.

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What it trains investors is to think about the underlying counter party risk.

Any one want gold and silver? (Like the Chinese?)

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MONEY: WalMart as the “bank” for the poor

Monday, March 3, 2014

http://www.oftwominds.com/blogfeb14/banks-obsolete2-14.html

Banks Are Obsolete: The Entire Parasitic Sector Can Be Eliminated (February 20, 2014)
What else can we do with the $1.25 trillion we’ll save by eliminating these obsolete financial middleman parasites? A lot.

*** begin quote ***

The entire notion that 100 savers put their money in a bank which then buys a mortgage with their savings and sells it as a security that supports a pyramid of derivatives is obsolete. Each saver can directly own (and sell on a transparent market) a piece of a mortgage, auto loan, business loan, etc. There is no need for a middleman banking sector at all–no skim, no concentration of risk, no opportunities for selling derivatives to unwary investors. All that goes away with the banking sector.

But what about holding deposits? We already have two institutions that could serve this role: credit unions and the post office. If those holding depositors’ cash do not issue loans, they have no source of income to defray operating expenses. The solution is obvious: charge fees for holding deposits and payor-payee transactions.

*** end quote ***

And what about WalMart as the “bank” for the poor and middle class?

I see the politicians and bureaucrats whine about Payday Loans and Title Loans.

WalMart could be a great “bank” for the little guy!

Argh!

The Sheeple are so dumb and the Gooferment enables them!

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MONEY: The FED is clueless when it counts

Friday, February 28, 2014

Fed’s 2008 Transcripts Show Struggle to Grasp Magnitude of Crisis
Two days after U.S. officials decided to let Lehman Brothers collapse in September 2008, and just before the Federal Reserve was about to unleash a torrent of new support programs to bolster a crumbling financial system, central-bank officials were still struggling to grasp the magnitude of the calamity that had hit the U.S. economy.

“I think that our policy is looking actually pretty good,” Fed Chairman Ben Bernanke said of the level of interest rates at a closed-door Fed policy meeting on Sept. 16, 2008, according to transcripts of its policy meetings that were released Friday with the traditional five-year lag.

By year-end the Fed had cut interest rates to zero, announced plans to start buying private mortgage-backed securities, and set up programs to prop up money-market funds and the commercial-paper market and individual banks such as Citigroup.

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So why do we allow the banking cartel to run the nation’s money?

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MONEY: A “delaying action” to keep the Ponzi scheme going

Monday, February 17, 2014

http://www.deviantinvestor.com/5492/17-questions-that-deserve-answers/

17 Questions That Deserve Answers
Posted by Deviant Investor on February 11th, 2014

*** begin quote ***

The U.S. believes in paper dollars and an unbacked debt based currency. Such currency can be created with little more than a few keystrokes on a Federal Reserve computer. Would the Fed and the U.S. government sell gold into the world market to slow the inevitable weakening of the U.S. dollar? Would the Fed and the U.S. government ship (via intermediaries) substantial quantities of gold to China to prevent dumping of T-bonds and dollars? Are gold sales a “delaying action” to extend the reserve currency status of the U.S. dollar?

*** end quote ***

Certainly, you can not trust the bankers, crony capitalists, politicians, and bureaucrats!

So what should we put out trust in?

Bullets, bandaids, and beans. 

When you have all those — nickels, silver, and gold!

My favorite test what posted in 2009.

https://reinkefaceslife.com/2009/10/09/money-pirates-chest/

And the answer is still the same — gold is better than anything else.

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MONEY: Fig Leaf for retirees

Tuesday, February 4, 2014

http://license.icopyright.net/user/viewFreeUse.act?fuid=MTc4Mzk0OTA=

Social Security Trust Fund: Fig Leaf For New Retirees
By JED GRAHAM
INVESTOR’S BUSINESS DAILY

*** begin quote ***

Those who live to the average life expectancy, now past 84 for new retirees, will outlive the trust fund by more than four years, according to Congressional Budget Office projections.

At that point, Social Security could pay only about 75% of benefits, resulting in a 25% across-the-board cut to annual benefits if Congress doesn’t act.

*** end quote ***

And when something bad happens, who do we hold accountable?

Gooferment, politicians, and bureaucrats long gone!

The little guy gets the weenie.

Again.

I am more cynical that the article. I think it could happen to everyone. Me included.

I’ll be too old to do anything about it. And, part of a declining minority with no clout.

Have to get to a better state.

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