Thursday, July 28, 2011

Financial Crunch! Economic Collapse! (Part 12)

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Cash, not Gold, is King in a Crash
by Henry Makow Ph.D.
August 4, 2011
Until we understand the nature of money and reform its creation, we will continue to be punished.
Everyone predicted the market would crash if the US didn't raise the debt limit and defaulted.
Well, the debt ceiling was raised and the market crashed anyway. Even gold went down today. Why?
They crashed because the specter of "lower government debt" meant less spending i.e. The medium of exchange would not keep pace with economic growth. And since the dollar is the world reserve currency, this puts the world economy in a straight jacket.
Until we understand the nature of money and reform its creation, we will continue to be punished. Money can no longer be produced as a debt to the private central banking cartel. It must be produced debt-free.
Here is an explanation of money I posted last Sunday:
Imagine that you were charged a penny for every breath you took. After a month, this would amount to a lot of money. Wait! you would say. Nobody owns oxygen!
The same applies to money. Money is a medium of exchange. It has no intrinsic value.
It is a coupon used to facilitate trade. Each product or service is worth so many coupons.
The economy is like a fire which needs a certain amount of oxygen to burn steadily. The job of the government is to provide this oxygen in terms of spending i.e. injecting coupons.
Just like oxygen, nobody can own a medium of exchange.
But the Illuminati bankers do own it. They create money in the form of a debt to them! Anytime the government wants to stoke the fire, it must go further into debt.
Fiscal conservatives like Ron and Rand Paul perpetuate and legitimize this fraudulent and dysfunctional system by harping on the dangers of "debt."
The economy would collapse if the debt were repaid. There would be no money in circulation. We're not meant to repay it.
Half the US debt is owed to the Fed and should be renounced since the money was created as a book entry. Why should we repay it with sweat and blood?
Fiscal Conservatives are going to tie the hands of government and precipitate a major depression.
Looks like this is coming true.
Gold & Silver Heresy
In an economic collapse, people will seek refuge in paper currency, especially the $US. This happened in 2008 and it is happening again.
As the market tumbled this morning, gold was up $20 but gold stocks went down. Then Gold tumbled $40 from their highs before stabilizing down $14. The same happened with silver. It was up 50 cents and then down almost $3. Gold and silver stocks were down 6-12 per cent.
Gold and silver are just rocks. They are much more expensive to produce than paper and for that reason they are inferior as a medium of exchange i.e. coupon.
A gold bug sent me this:
"The financial crash will render worthless everything that is denominated in paper. Only real things will retain value, and the royalty of real things are gold and silver, for the simple reason that they are the most liquid, i.e. universally accepted."
I replied:
if "universally accepted" and "liquid" are the criteria , the US dollar is far better than either metals... people are going into cash today!
Conclusion
The economy needs liquidity (i.e. an effective medium of exchange that stimulates productivity.) As long as this medium is created in the form of debt, the economy will be severely constrained.
We don't need bankers to create currency based on our government's credit. The government can do that itself.
We must unite and demand debt-free currency creation or suffer the consequences.
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Illuminati Planning Another Financial Crash?
by Henry Makow Ph.D.
(Revises and updates an Oct 2009 article)
June 16, 2011
The PBS Frontline Documentary "The Warning" proves the Illuminati bankers deliberately sabotaged the financial system, and continue to do so.
As the talk of sovereign debt defaults roil the markets, it appears the Illuminati bankers may cause another financial breakdown as a way to enact a world currency and New World Order. This certainly was their mantra during the 2008 crisis.
The PBS Frontline Documentary "The Warning" proves the Illuminati bankers deliberately sabotaged the financial system, and continue to do so.
Shortly after Brooksley Born became Chair of the Commodities Futures Trading Commission in Aug.1996, Fed Chairman Alan Greenspan summoned her to his office.
There he told her that being a regulator did not include preventing or policing fraudulent activity. He said the "market" would take care of that. Remember this is from the Rothschild's point man in America!
It stands to reason, doesn't it? The Fed itself, and central banks in general, are the biggest fraud in the history of the world. They create our currency in the form of a debt to them. A medium of exchange should belong to no one.
The documentary describes what happened when Born tried to regulate the $495 trillion derivatives market. The four Illuminati Jews running the US financial system -- Greenspan, Robert Rubin, Lawrence Summers and Arthur Levitt read her the riot act and stonewalled her proposals.
In Congressional hearings, Born insisted she was trying to protect the American people's money from the reckless practices of US banks.
But the "committee of four" assured Congress that any regulation would itself bring down the system. Congress, dependent on banking contributions, supinely agreed.
In 1998, right on schedule, the financial system almost collapsed when a hedge-fund, "Long Term Capital Management" went belly up. In a harbinger of the future housing bubble, the banks had made huge derivative bets on the Russian economy with LTCM.
The Fed forced 13 US and international banks to purchase the hedge-fund. Altogether $4.6 Billion was lost.
The documentary magnificently shows that although the American (and world) economies were at stake, and despite this near catastrophe, the Clinton and Bush Administrations refused to regulate the derivative market, and allowed it to grow to an eventual $595 Trillion during the housing bubble.
Not only did they refuse to regulate the industry, they forced Brooksley Born (left) out of her job by removing her powers.
Her prophesy came true in 2008. Because of derivatives called credit default swaps, the US taxpayer was forced to indemnify US and foreign banks for more than two trillion dollars.
FAKE REPENTANCE
At this time, Alan Greenspan was hauled before Congress and asked why he had rejected regulations.
The documentary shows him confessing that he had been "mistaken." The "world view" that had guided him for 40 years --that markets were self regulating-- had been wrong.
What is shocking, and you can see this for yourself in this amazing documentary, Greenspan is making a Masonic "triangular" hand sign as he offers this confession.
He is signaling to his fellow Illuminati that he knew exactly what he was doing. His confession was bogus.
Similarly, in the same documentary, Arthur Levitt, the Chair of the SEC at the time, makes the same sign while confessing he should have listened to Brooksley Born.
In other words, this dangerous high wire act is Illuminati policy. Brooksley Born says that we can expect more financial turmoil until markets are regulated. Or until world government is instituted, I might add.
Alan Greenspan, Robert Rubin and Lawrence Summers were in charge in 1998. Their then-deputies, Timothy Geitner and Ben Bernanke are in charge now. All are Fed or Goldman Sachs alumni. This is like asking cocaine addicts to regulate drugs.
The hand signs and the fact that no significant regulation has taken place, suggests market turmoil again will be used to bring down the US (and world?) economies, cause a depression and usher in the New World Order.
PBS is virtually a province of the Rockefeller empire. Yet this Frontline documentary is superb, what journalism should be. Apparently, the Illuminati is willing to operate "in plain sight," after the damage is done. They are also willing to stoke public anger at their mainly Jewish underlings.
Born seems to be a Gentile. Her opponents were all Illuminati Jews. The optics are bad.
Essentially, the American people are being disenfranchised, disinherited and enslaved. Their leaders are Freemasons and Illuminati Jews who are dedicated to integrating the country into a world government run by the central bankers.
This is promised in The Protocols of the Elders of Zion. And it's happening right on schedule.
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