PUBLIC DEBT We also know that the banks were saved by the creation of PUBLIC DEBT. That’s US putting money into the system that (don’t laugh) WE BORROWED FROM THE SAME PENNILESS BANKING SYSTEM.

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‘AUSTERITY MEASURES’ ATTACK THE WRONG KIND OF DEBT

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I can not claim to fully understand the banking system and all the devious ways it finds to make a profit without itself producing any material thing that is of use to anybody.

What it does create is fiat money (an abstraction, a medium of exchange that is recognised by governments and therefore by the governed).

One of the most basic and obvious things we all realise about this banking system is that it makes its owners extremely, incredibly, monstrously rich. It makes those who run the system merely ‘rich’….and leaves the great mass of humanity in a position somewhere between ‘comfortably enslaved’ and ‘absolute destitution’.

Another small (or maybe large) breakthrough in my understanding of this racket occurred when I watched Australian Professor of Economics, Steve Keen, being interviewed by Max Keiser here.

His analysis bears repeating.

It is not ‘rocket science’ but he exposes yet another fundamental and concealed aspect of the fraud that has been perpetrated against the honest citizens of the world since the introduction of this satanic system.

TWO KINDS OF DEBT

There is PRIVATE DEBT and PUBLIC DEBT.

PRIVATE DEBT

This is the kind of debt created by the private banks with no government involvement, i.e. mortgages, personal loans and (much more significantly) debts resulting from the gambling activities of these banks on the international markets. Webster Tarpley and others called these debts, the result of the creation of a massive ‘derivatives’ bubble, the cause of the 2008 banking crash. The banks have created about $ 1.5 Quadrillion dollars worth of these ‘assets’. $1.5 Quadrillion is $1500 Trillion or $1,500,000 billion (about 10 times the value of everything on earth). When dealers collectively realised that the ‘goods’ they were buying and selling were fraudulent the system collapsed and the banks were ‘skint’.

This PRIVATE DEBT, not public debt or any action taken by our governments nor any actions of our own, created the crisis. We sort of know this.

PUBLIC DEBT

We also know that the banks were saved by the creation of PUBLIC DEBT. That’s US putting money into the system that (don’t laugh) WE BORROWED FROM THE SAME PENNILESS BANKING SYSTEM. And herein is the heart of the scam against humanity, but we’ll let that pass for the moment.

Every victim country of this scam has been told that their problem is TOO MUCH DEBT so we have to ‘cut back’ to reduce that debt.

As Keen brilliantly points out, this is like a psychopath coming along with an axe and chopping your arm off. Next a doctor rushes in and applies a tourniquet to your wound to stop the bleeding.

The axeman then accuses the doctor of causing your arm to fall off.

NO.

Public debt (the doctor) is not the problem. Private debt (the psychopathic axeman) is the problem.

Our focus should be on dealing with the Private Debt (debts incurred via bank lending and trading).

We should not be attacking ourselves because of public debt. We should be dealing with the private debt.

…..The best solution is to let the banks fall and begin creating our own money debt-free…..

But even if this is not going to happen any time soon, we should realise that are not “living beyond our means.”

The money system does not operate like a household budget.

REPEAT. THE MONEY SYSTEM DOES NOT OPERATE LIKE A HOUSEHOLD BUDGET.

WE KNOW THAT THE CONSEQUENCE OF THIS MINDSET (DELIBERATELY CREATED FOR US BY THOSE WHO PROFIT IT) IS THE TRANSFER OF REAL WEALTH FROM OURSELVES TO THE CRIMINALS WHO HAVE ALREADY ROBBED US ONCE.

Look at Greece. As Keiser reports it is crawling with parasite international financiers expecting to buy Greece’s assets, its water, its airports, its docks etc for ‘cents on the dollar’ because Greece ‘cannot pay its debts’.

In this crooked game the point will always be reached where nobody can pay their debts.

The 2008 engineered destruction of the banking system was a prelude to the greatest theft in history. The Protocols of Zion describes this method of destroying and occupying nations very clearly. The Press will support the banking criminals and the end-game is war.

A MAJOR MECHANISM OF WEALTH TRANSFER

Bankers are paid according to their ability to inflate the money supply, i.e. create debt.
While increasing debt rewards them proportionately* we must accept ‘austerity’, i.e. cuts in wages.

So….as the people lose money the bankers gain again. They profit both from debts created and from the inability of people to repay their debts as an economy shrinks.

The thing is if we really want to deal with the main problem, private banker-created debt, surely we should be reducing that debt as a fraction of the total money supply.

We could do this by INCREASING WAGES.

This would cause inflation and would probably not make anyone directly richer but it could be managed in such a way as to reduce the relative size of the private debt burden that so threatens the people.

A strategy of job creation and high rates of pay linked to the increase in money supply would push back the significance of debt and the bloated incomes of bankers compared to the size of the overall economy.

i.e. a fairer share of the wealth would go to the people who create it.

OK, we know this won’t happen, but we need to be armed with an awareness of these issues in order to challenge the bullsh*t that is destroying us.

WE MUST NOT LET THESE LYING LIARS CONTINUE TO ROB AND ENSLAVE US BY THEIR LIES AND BY THEIR CONTROL OVER THE LYING POLITICIANS WHO PUT A WILLING FACE ON THEIR LIES FOR THE SAKE OF NARROW PERSONAL ADVANTAGE. AN ADVANTAGE THAT THEY WILL ONE DAY, PROBABLY QUITE SOON, REALISE WAS NO ADVANTAGE AT ALL.

In the end PUBLIC DEBT will be eliminated by governments taking back the power of money-creation to themselves from private banks.

PRIVATE DEBT will be eliminated by turning the clock back a few hundred years and MAKING USURY ILLEGAL or, better still, a hanging offense.

* Is it not also mad that debt is written into a banks books as an ‘asset’. What, therefore, is the borrower paying interest on exactly….when the full sum, instantaneously and magically, is realised by the bank the millisecond the ‘loan’ is created for a customer?

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5 comments:

Anonymous said…

It is Armed forces day today and up to 2000 military men and women will march through Edinburgh. There will also be a fly past by the RAF’s latest expensive toy called a Typhoon. Where the suited men of the world’s banking industry along with their high tech laptops have failed to impose the above system on other nations, Our military have, without question, imposed it on them with the aid of the bomb and the bullet. Steve Keen’s brilliant analogy is all to clear to the Greeks,the rest of the western world will without doubt soon follow suit.

25 June 2011 11:26

lwtc247 said…

Kev.
I’m not an economist either, although I’ve made much effort to try and get my head around it.

I like the to hear these ‘alternative’ economic voices, but to me, they always seem to miss the the most significant point. They discuss methods of tinkering within a usurious economic scheme. No what matter what tinkering is done, i.e. the Greenspan/Bernanke type of the Keiser/Keen type, the usurious framework they operate will always cause them to fail. All the alternative economists would do is perhaps lessen the rate of economic collapse or make it take on new unfamiliar forms.

Max in particular has been saying for a number of years now, “raise interest rates” and Keen here was proposing the same thing by increasing wages. But interest is a key part of usury, facilitating debt. And fiat currency by nature is also inflationary.

So after watching these kinds of alternatives, I end up sighing and shaking my head at the folly of it all.

Although the Christian church in the past is known to have had serious corruption issues, it should be remembered and praised for upholding the prohibition of usury for something like 1500 years. The corruption in the church could (I postulate) have been repaired up until that point when Calvin et al open the usury sluice gates, to the delight of certain you know whos, but after that point, institutionalised Christianity was dealt a fatal blow.

Almost exactly the same thing is happening in Islam.

25 June 2011 15:58

Anonymous said…

Whether Keen’s ideas have a general validity, I don’t think they apply to the Greek situation: it is in the Euro and thereby incapable of causing inflation. I don’t know for sure but I would imply that Greece has two classes of workers, those who work for or receive pensions from the government and those in the private black economy. The situation in Greece is one of mounting public debt which can only by cured either by leaving the euro and adopting Keen’s nostrum or by public servants taking a reduction in wages and foreign banks owning Greek bonds taking haircuts; in that way public debt will be reduced and the rate of increase of it will reduce and the ability of wage earners to increase the trade imbalance with the rest of the Eurozone (buying mercs etc) will be reduced. Thus the Greek economy will slow but be put on a more even keel.

25 June 2011 19:18

chuckyman said…

Only one country has followed the correct strategy and that was Iceland. They point blank refused to allow the private debts of the bank to be backed and transferred to the public.

Sweden did the same thing back in the 1990’s. They guaranteed all the people’s savings on the provision that the shareholders and bond holders took a ‘haircut’.

http://www.creditwritedowns.com/2008/08/swedish-banking-crisis-response-model.html

The recent banking crisis was deliberately created and the puppets were already in place to ensure that correct outcome. The massive transfers of debt to the public in the primary banking Capitols freed the vultures to ravage the smaller victims – hence Greece.

Goldman Sucks worked hand in glove with the Greek government to cook the books and hide their banking crisis. Yep – the Greek banks were screwed and not the country. Anyone see a trend here? Don’t get me started on Ireland.

They create their private debt out of thin air while they repossess real property from default mortgages and loans. As you have noted they are flush with bailout money injected from the central banks. Money borrowed against our quality of life, pensions and above all else our blood and sweat to buy real assets – utility companies, land, toll roads and everything else tangible.

Bastards!

They create out of thin air the ability to own everything tangible in existence – with monopoly money. Note that no one mentions the central banks – the public debt holders. Why has the GB government transferred even more power to the whore of Threadneedle Street?

They have their fingers on the detonator at all times. The City of London has its own Mayor, police force and is in effect a separate sovereign unit. Do they have our best interests at heart – not bloody likely.

Sorry Kev but I feel this is the core of the matrix’s web of control and we live in a world where most people are proud to say they don’t understand economics. I don’t know the ins and outs of Credit Default Swaps and derivatives but I recognise the basics for what they are – handcuffs and landmines.

Both you and lwtc247 are correct, the key to the future is the end of usury – no exceptions. Calvin had some interesting backers and background–some would call them Venetians if you follow my drift. They can stick the gold standard argument where the sun doesn’t shine because we know who owns all of that.

Wage increases would work as you say in a world where the game isn’t rigged and the coming crash was not the desired outcome. In the current fiat system by inflating the money supply and printing money it waters down the current assumed value of savings.

The pensions are toast – ask the Irish. George Carlin said it a while back and this is what we face. Work till we drop.

Bankster bunting is the only solution. The nest phase of banking collapse is about to commence and no matter what they throw up to distract us all we must remember the true culprits.

25 June 2011 23:34

Anonymous said…

It is a sad thing when the world is governed by the minds that are revengefull, hatefull, paranoid and also in the mood for raising hate and anger, jeallosy and bitterness. The minds of men rule the world, and their minds are focused on war, and on killing the enemy.

To be able to kill the enemy, the paranoid mind needs to build up hate, and also to explain to the world whow bad the enemy is.

The hatefull, paranoic mind of men, should not be allowed to rule states and the world. But everywhere it does, and therefore the world looks like it does.

The male minds are warmongerous, and seeks for, and lusts for, the war. To be able to do war, it needs the hate. So the hate is everywhere being built up. It is seeked for, looked for, and being promoted.

The minds of men should be forbidden to rule the states and the world. Especially those who are extremely revengefull, hatefull and paranoic towards the ones who do not belong to his own kind.

The male minds are warriours, and can not be anything ells.

Unfortunatly for the rest of the worlds population, women and children.

26 June 2011 09:49
http://kevboyle.blogspot.com/2011/06/we-should-attack-private-not-public.html
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