Time for a Debt Jubilee

[FORD]

https://www.youtube.com/watch?v=9EdXmuxljHc

[Nitro Express]

There's actually more derivative debt worldwide than there are real assets to pay for it. It's some ridiculous number like a quintillion. If you added up the gross national product of every nation on earth it would be somewhere around $65-70 trillion. The banking is so far away from reality now all you can do is have a jubilee.

How banking is supposed to work is the banks have legitimate money and they only have a certain amount to loan. Therefore they are careful who they loan it to. They check whether you can repay the loan and even if you can, can you be trusted to repay the loan back? If a bank is unwise on who it loans to, it can go broke and go out of business.

Today the large banks never run out of the money. The Federal Reserve is a bottomless pit of 0% interest money. It's biggest customer is the US government. Go ahead Uncle Sam, spend! spend! spend! We have an endless supply of electronic money we can make on our computers. The debt goes up and the interest on that debt goes up. Then of course the federal income taxes pay the debt owed to the Federal Reserve and the bankers yoke on the working citizens becomes heavier. It starts to control people's lives and eventually when the debt becomes so high, society is a slave to it. Just view the Federal Reserve Bank as a big owner of debt slaves. They control the whole country because they control the production of money that costs them nothing. Talk about a nice racket to be in.

The result of all this cheap money is debt bubbles and when you have banks that loan it out recklessly, things like homes and college tuition become expensive. People get themselves into levels of personal debt that a more responsible banking industry would have never allowed.

So we do need a worldwide debt jubilee absolutely. We also need to take the ability to make money away from these secretive private banks and make it a public utility that is ran in the open. Since there is not enough precious metals to back a world economy with 7 billion plus people in it, we would have to go to a fractional reserve system of some sort. We could carefully limit how much money is made like Lincoln did with his greenbacks or we could tie a percentage of the money to precious metals in the classic fractional reserve method.

The real economy is people selling and buying services and goods. It's people doing things and the raw materials of production. That is the economy. So as long as your money supply matches the productivity of your nation, you are fine because that is really what the worth of your paper is based on.

Right now money is based on nothing and there is too much of it in too few hands. Instead of being based on anything real, it's all speculation and manipulation.

[DONNIEP]

What?? You mean the gubment of the US of A can't print it's own money?? And it has to borrow it from the Federal Reserve which is about as federal as Federal Express?? That can't be true. Next you'll be saying something crazy like there's never been a serious audit of the Federal Reserve...

[ELVIS]

Michael Snyder (http://theeconomiccollapseblog.com/archives/why-is-the-world-economy-doomed-the-global-financial-pyramid-scheme-by-the-numbers)



The global financial pyramid scheme by the numbers...

-$9,283,000,000,000 – The total amount of all bank deposits in the United States. The FDIC has just 25 billion dollars in the deposit insurance fund that is supposed to “guarantee” those deposits. In other words, the ratio of total bank deposits to insurance fund money is more than 371 to 1.

-$10,012,800,000,000 – The total amount of mortgage debt in the United States. As you can see, you could take every penny out of every bank account in America and it still would not cover it.

-$10,409,500,000,000 – The M2 money supply in the United States. This is probably the most commonly used measure of the total amount of money in the U.S. economy.

-$15,094,000,000,000 – U.S. GDP. It is a measure of all economic activity in the United States for a single year.

-$16,749,269,587,407.53 – The size of the U.S. national debt. It has grown by more than 10 trillion dollars over the past ten years.

-$32,000,000,000,000 – The total amount of money that the global elite have stashed in offshore banks (that we know about).

-$50,230,844,000,000 – The total amount of government debt in the world.

-$56,280,790,000,000 – The total amount of debt (government, corporate, consumer, etc.) in the U.S. financial system.

-$61,000,000,000,000 – The combined total assets of the 50 largest banks in the world.

-$70,000,000,000,000 – The approximate size of total world GDP.

-$190,000,000,000,000 – The approximate size of the total amount of debt in the entire world. It has nearly doubled in size over the past decade.

-$212,525,587,000,000 – According to the U.S. government, this is the notional value of the derivatives that are being held by the top 25 banks in the United States. But those banks only have total assets of about 8.9 trillion dollars combined. In other words, the exposure of our largest banks to derivatives outweighs their total assets by a ratio of about 24 to 1.

-$600,000,000,000,000 to $1,500,000,000,000,000 – The estimates of the total notional value of all global derivatives generally fall within this range. At the high end of the range, the ratio of derivatives to global GDP is more than 21 to 1.

Are you starting to get the picture?

Every single day, the total amount of debt will continue to grow faster than the total amount of money until the day that this bubble bursts.

What we witnessed back in 2008 was just a little “hiccup” in the system. It caused the worst economic downturn since the Great Depression, but global financial authorities were able to get things stabilized.
Next time it won’t be so easy.

The next wave of the economic collapse is quickly approaching. A full-blown economic depression has already started in southern Europe. Unemployment is at record highs and economic activity is contracting rapidly.

The major offshore banking centers in Cyprus are on the verge of collapsing. It was just announced that they will now be closed until Tuesday, but nobody really knows for sure when they will be allowed to reopen. And there is already talk that when they do reopen that there will be strict limits on how much money people can take out.

And now the IMF is warning that the three biggest banks in Slovenia are failing and that a billion euros will be needed to bail them out.

The dominoes are starting to tumble, and the United States won’t be immune. In fact, the greatest financial problems that the United States has ever seen are on the horizon.

But you can just have faith that Ben Bernanke, Barack Obama and the U.S. Congress know exactly what they are doing and will be able to save us from the coming financial collapse if you want.

The mainstream media will provide you with all of the positive economic news that you could possibly want.
They are giddy about the fact that the Dow keeps hitting all-time highs and they would have us all believe that we are in the midst of a robust economic recovery. You can listen to them if you want to.

But when you are tempted to believe that everything is going to be “okay” somehow, just go back and look at the numbers there were posted above one more time.

There is no way that the global financial pyramid scheme is going to be able to hold up for too much longer. At some point it is going to totally collapse. When that happens, will you be ready?


:elvis:

[Nitro Express]

A couple years back the banks in Sweden loaned out too much money and created a debt bubble. How they fixed it is they let the banks fail. The government secured the deposits but let the banks fail and the stock holders took the hit. It created some short-term pain but it eliminated a prolonged debt crises and the tax payers didn't get stuck with debt so bank owners could continue to live in luxury. Maybe why Sweden did it is their taxes are high enough already. Increasing those to pay for a bankers bailout probably would set the public off so the politicians were motivated to do something about it.

http://www.nytimes.com/2008/09/23/business/worldbusiness/23krona.html?_r=0

This is what we should have done in 2008. Let them fail. The assholes sticking us with all the debt would take the hit and many of them would have been ruined. Well gee wiz, that's what you deserve for propagating bank fraud.

In the US the big culprit of the problem is the Federal Reserve. Ron and Rand Paul know nothing gets fixed without cracking the Fed open to take a looksie at what is really going on there. Then we nationalize it and set forth a sound monetary policy. Or maybe just put the Fed out of business and issue US Treasury Notes like Kennedy did.

The banks in the US are still holding enormous amounts of debt and the public has waken up to the "if you don't bail us out you will have blood and chaos in the streets!" lie. We see other countries like Iceland took on the banks, jailed the bankers, and defaulted on the debt and now they are in better shape that the countries going through austerity measures. No will fuck around for close to a decade and then decide it's time to take a pound of flesh out of the banks, jail bankers, and write much of the debt off. If we play our card right we might start to pull out of this mess around 2020.

I would like to thank Ben Bernanke for dumping all the funny money into the stock market. My stock holdings did quite well this year. I'm doing my 2012 taxes. Might as well profit from the short-term stupidity.