---------- Forwarded message ----------
From: Dick Eastman <oldickeastman@q.com>
Date: Mon, Oct 18, 2010 at 5:02 AM
Subject: [bangla-vision] a pretty good explanation of what the finaciers are up to -- and the plan we must substitute for their's
To:
> Handing out money to average people might work if it was just done as
> stimulus in small to medium amounts, But too much for too long would
> devalue the money and stop some people from working.
Please take note on how the lady from Germany {Margrit Kennedy] reacts to the developments of late and particularly her comments on the coming Gold Standard.
Warmth and best wishes to all of you,
Anthony
From: Dick Eastman <oldickeastman@q.com>
Date: Mon, Oct 18, 2010 at 5:02 AM
Subject: [bangla-vision] a pretty good explanation of what the finaciers are up to -- and the plan we must substitute for their's
To:
Items:
Social Credit REPLACES Wall Street money going to international corporations and China, with debt-free money going directly to US households.
In a letter from October 2008, Dan Breeden wrote:
The FED has now said that they can loan money directly to states and companies. Since the FED is just a collection of rich bankers, it will be interesting to see just who they loan to. They will undoubtedly loan to companies that they would like to own,,,, hoping for a default. But, will they loan to states? Since a state is not a money-making enterprise, I suspect that Rockefeller won't cough up a penny.
Now we see why the Fed is pouring out new money -- called inflation -- when really it is a transfusion from the domestic loop to the international corporations so they can better vanquish the domestic economy and capture all land resources and industry and assets (including privatized public wealth). The Fed is buying government securities and giving the dollars to the international corporations and two China (the PLA being partners with every international corporation in China).
The Fed buys Corporation and Chinese held securities giving them dollars which they do not spend here. The securities have value because they pay interest. Whatever their market value when you buy them you get a stream of interest payments. That stream of interest payments is paid for by you and me the taxpayers. The fact that the Fed is buying up securities and and putting out up-front dollars from them shows that the International Financial Elites are expecting the US to go down -- the securities to be worthless -- but that actually the dollars will keep their value because the US still has land and resources and your labor it can buy (or control through debt slavery) -- the Fed is a separate entity, not part of the US which will default on its securities. So the securities will no longer be held by Financiers -- just by pension plans and little people through their mutual funds etc. -- so they will be the ones stuck from the defalut. Because in the default it is the securities that go -- not the private central bank money. That is why they want those dollars -- dollars will be safe -- dollars are what will be traded in for the new gold-backed currency they have in the works. You will take the gold you have bought -- have it minted into coin and then use it to pay your debts which will still be there after the US is gone.
Or perhaps you don't like where they are taking you and would rather have social credit?
Remember this too: The prices we pay for objects include 40 percent of interest payments. Those are prices going to the financial sector which is not recirculating them back into the economy -- those dollars paid in the price of goods that do not go to the producing firm but go to finance are dollars that will not be calling forth more production. More than three quarters of our tax money goes to fund both interest payments on the national debt and the military that maintains a world empire and, currently two major wars/occupations. The wars themselves are a form of "export" (exporting destruction) that is make-work for US corporations.
Now if we have social credit households -- making strong household sector demand -- then entrepreneurs, engineers, managers and skilled workers will be called forth to create more household goods, more labor saving innovation, more beauty and knowledge now that the slavery of serving the creditors is ended.
Only recently has it all come together -- exactly what is wrong and exactly what the solution MUST be -- to end the basic problem that has plagued the world since the creation of the Bank of England.
Anyway -- now you know -- if instead of skimming a hundred posts today you were to print out this one and really study what I have given you -- write it out in your own words -- then you will have equipped yourself to provide others with the medicine that can save us.
For details:
Learn about the hidden cost of interest here:
Lean about the social credit solution here:
Learn about why social credit is the only cure -- the nation's only defense in this foreign attack that involves the infiltration and destruction of our economy through the weaknesses of our system stemming from the usury component of our monetary system in the control of hostile international bankers who control our financial sector, and all three branches of the Federal Goverment.
Here is a more formal exposition of the usury problem and the social credit solution.
From: "T Lee Buyea Fla.News Service" <ranger116@webtv.net>
> stimulus in small to medium amounts, But too much for too long would
> devalue the money and stop some people from working.
All it would require would be small and medium amounts of social credit dividend each month or quarter because those dollars would circulate many times in a year. That is, it would have velocity.
Remember the equation P x Q = M x V
Totals of all payment receipts showing Price @ Quantity in a year (i.e. sum all all cash register receipts and other receipts) EQUALS the amount dollars "M" that have been in circulation (not being saved, i.e., unspent) at least once in the time period TIMES the average number that each of those dollars was spent to buy something from the production sector -- that number or rate is called Velocity (V). (Don't count garage sales -- we are talking about new produced goods. ) In other words Receipts (PxQ) equals Total Circulating Purchasing Power which can by described symbolically this way:
P x Q = M x V which is an "identity", meaning that it is always true. (Note the triple-bar equal sign -- which means "always equal to" or "always true by definition")
Now we add an assumption to this identity -- the assumption that velocity does not change -- then the equation, with V now a constant, becomes the famous quantity theory of money.
Under the quantity theory of money -- if you add money -- that is, if you increase M, either more will be produced (a rise in Q) or prices will climb (an increase in P) or both. But also if you withdraw money (a removal of M from circulation) either P will go down or Q will go down. And of course if Quantity produced goes down wages, profits, will go down too even as failures to pay rent and debt will increase. That is the problem of deflation. That is the Quantity Theory of Money -- associated with the name of Irving Fisher.
But there is something else -- another fact that comes into play.
Remember that P x Q = M x V is always true (not making any assumptions about velocity). Velocity may increase -- if people were paid every week instead of every two weeks that would increase velocity by some.
Of course if dollars are saved rather than spent -- that will decrease M -- unless the money is saved in a bank and not in someone's mattress. If the money is put in a local bank -- then the bank may lend the money to build a house or to build a factory -- in which case M would keep circulating (buying producer goods instead of household goods). But something else comes into play that is the root of our problems.
That something is usury.
P x Q = M x V is always true.
But let consider the nature of loans, money creation and interest. In our system of fractional reserve banking -- if a bank gets a deposit of a dollar from someone's mattress -- the law lets them lend all of that except a fraction -- say 10 per cent. And as soon as the loan is made of 90 percent of the original deposit, say to a building contractor, the contractor goes and spend it and the electrician will get it and deposit it his bank. And the electricians bank will take that deposit of 90 cents and will be able to lend out 90 percent of that 90 cents, that is 81 percent of the original deposit, keeping 9 cents as reserve. And do forth. So in the end each of the new dollars from the mattress will create more purchasing power because of these additional loans -- each new loan smaller than the one before it -- so that, in fact, if the reserve requirement is 10 percent the total amount of money created/circulated due to loan expansion will be ten times the amount that was taken from the mattress in the first place.
But what happens when money is taken out of circulation and put in a mattress --or taken out of the country. We have the same "multiplier effect" in reverse -- contracting the money in circulation by ten times what was taken out. Instead of loans being made, loans will be called in, loans will be defaulted on, new loans will not be issued to replace retiring loans -- there will be a monetary contraction leading to less spending, layoffs, firings, business failures, cuts in quality of ingredients, reduction of services and frills etc. etc. etc. (look around you to see what I am talking about).
Only now are we ready to understand the true effect of the claw of interest slavery -- the true cost of usury.
While it is always true that P x Q = M x V it is also always true under the usury system that regardless of velocity -- M will always tend to diminish because purchasing power is leaking -- gushing -- tsunamiing out of the system to the financial sector in the form of interest payments. 40 percent of each price you pay at the store or the car showroom is to cover interest as a cost of production to the producer that he passes on to the consumer. Even more of each dollar in taxes goes to pay interest on the national debt -- much of that going to the Fed which owns a lot of our debt and much of it going to foreign creditors who own United States securities and our state and local bonds etc. The Fed is like a mattress -- because it is not putting that money back into domestic economy circulation. The Fed (under figurehead Bernanke) is buying up securities and paying for them with new bank deposits -- there are no printing presses when the Fed creates money -- to the big financiers and financial institutions that sell the securites to the Fed -- these financiers getting the new money are not using it to invest in US domestic production. Anything but that. Instead they are, by policy, letting deflation take its toll domestically, while they apply their money overseas. They buy goods of China and allow us to buy them with consumer loans -- (called second mortages) -- but the drain -- the reduction of M -- continues to take its toll.
The result is the destruction of the country and the accumulation of all of our dollars in China -- so that when the time comes --China will not have to conquer this country, they will just move in and buy it up, and evict us to the slum holding pens (New York, L.A., Philadelphia, Detroit, Kansas City, etc.) where we, with poor food, viruses, low income, high crime will simply die off.
The alternative of course is social credit. But I can't seem to make anyone see that an alternative is necessary.
The libertarians and conservatives and the people educated by high-school education disc jockey Glenn Beck and Freemason Statanist conspirator Ron Paul and Celente and Alex Jones etc. seem to believe that we need to let the collapse happen to clear out the mal-investment (when in fact when you took out your home loan you were a good credit risk because of the job you had and the prospects we all thought you had -- before the Kleptastrophe crime cut us low. But they talk about a collapse being the necessary cure -- like the medieval doctors bleeding their patients and killing them while claiming they were trying to kill them. And then after the collapse and the Chinese and Rothschild/Rockefeller/Goldman creditors own everything -- including still outstanding IOUs of yours that they hold -- they will switch to a gold system in which you must slave all the harder to pay your debts in gold.
I hope I have persuaded you of the life and death importance of this analysis and the cure.
I am not an original thinker -- but I do have the gift of detecting falsehood, finding the problem in systems, evaluating solutions that others have offered to see if they really address the problem or not. I completed two years towards the doctorate at Texas A & M -- completing the prelim exam in macro with the highest score -- however I have forgotten almost everything I learned back then -- 30 years ago -- and only give to myself the distinguished title of "student of economics" -- a title I ask you to share with my by your diligent study and mastery of the material I have passed on to you here. I have sacrificed my life to gain the knowledge I have -- and to reach you with it. I beg you to take seriously the possibility that there is something good in this for all of us.
Sincerely yours,
Dick Eastman
Yakima, Washington
Schematic of social credit solution:
Here is the full 2008 letter from Breeden mentioned above:
The FED has now said that they can loan money directly to states and companies. Since the FED is just a collection of rich bankers, it will be interesting to see just who they loan to. They will undoubtedly loan to companies that they would like to own,,,, hoping for a default. But, will they loan to states? Since a state is not a money-making enterprise, I suspect that Rockefeller wont cough up a penny.
Any repayment would depend on taxpayer-approved tax increases,,, not a good bet.
Since 78% of the economy depends on the consumer and the consumer has closed his wallet, there will be a lot of companies going under. Rockefeller [FED] is allowed to create money from thin air. He can loan this free money to any company in the hope that they default. He just has to make the FED money senior to any other debt and he gets the company for pennies.
All of this freshly created money is extremely inflationary. As the dollar becomes more worthless, this is effectively a wage cut for Americans. Rockefeller not only gets the company for pennies, the inflation that he created gets him a workforce that is earning global wages. Voila!! He wins on both sides because his new company is globally competitive.
A suspicious person would say that Rockefeller engineered the derivatives fiasco knowing that it would lock up the credit markets. The Rockefeller printing press would be the lender of last resort because he had the only printing press. He prints free money to buy everything in sight.
A few years ago, congress gave approval to the states to sell their public works, highways, water systems, etc Rockefeller might not want to loan to states but, I'm sure that he'd be willing to steal the infrastructure.
Ron Paul introduced a bill to abolish the FED. If people had a wider vision, they would see that it is necessary.
If Rockefeller is allowed to seize everything with freshly created money, he will need a police state to keep the freshly-impoverished under control. This would be the end of America as an ideal.
Any repayment would depend on taxpayer-approved tax increases,,, not a good bet.
Since 78% of the economy depends on the consumer and the consumer has closed his wallet, there will be a lot of companies going under. Rockefeller [FED] is allowed to create money from thin air. He can loan this free money to any company in the hope that they default. He just has to make the FED money senior to any other debt and he gets the company for pennies.
All of this freshly created money is extremely inflationary. As the dollar becomes more worthless, this is effectively a wage cut for Americans. Rockefeller not only gets the company for pennies, the inflation that he created gets him a workforce that is earning global wages. Voila!! He wins on both sides because his new company is globally competitive.
A suspicious person would say that Rockefeller engineered the derivatives fiasco knowing that it would lock up the credit markets. The Rockefeller printing press would be the lender of last resort because he had the only printing press. He prints free money to buy everything in sight.
A few years ago, congress gave approval to the states to sell their public works, highways, water systems, etc Rockefeller might not want to loan to states but, I'm sure that he'd be willing to steal the infrastructure.
Ron Paul introduced a bill to abolish the FED. If people had a wider vision, they would see that it is necessary.
If Rockefeller is allowed to seize everything with freshly created money, he will need a police state to keep the freshly-impoverished under control. This would be the end of America as an ideal.
Where did I get all this?
The same place you must get it.
From the dead:
Actually Herman Daly is still alive and, last I heard, going strong.
And from the living:
Fellow students of economics with similar views of the usury problem and the social credit solution -- this is my circle on economics and political science -- (whether or not they include me in their circles is for me beside the point, many do definitely do not) -- but for sure these people have the right to claim themselves sympatico with me on economic questions without my objection. Some listed here I don't know at all (Zarlenga) or hardly know (Helen Brown,Henry Makow) ) some are new to me but I have such similar views we are instantly close allies (Migchels)
Leading reformers with worked out programs of reform (anti-usury, yet not social credit) :
Helen Brown
Stephen Zarlenga
Joost van Stennis
Douglas Social Credit -- the program I endorse in combination with populist reforms -- these are the great teachers I know of -- "Socreds" tend to teach rather than lead -- following an example set by CH Doulgas himself -- me included.
Wallace Klinck
Vic Bridger
Peter Haines
James Innes
Islamic Finance Principles (free of usury)
Abu Zahrin Abu Bakar (Indonesia) www.halaljournal.com
Popuist Generalists (System Comprehenders) and Sui Generis (individual thinkers in a class by themselves)
Deanna Spingola
Dan Breeden
Vicky Davis http://www.channelingreality.com/
Amber H. http://www.citizensamericaparty.org/
Henry Makow http://henrymakow.com/ http://www.activistpost.com/2010/10/after-fed-solutions-debate-begins.html)
Jeff Rense www.rense.com Is he a teacher or a university?
Mark S. Bilk -- www.cosmicpenguin.com
Wendell Solomons (Sri Lanka) worldcity -- first discussion group
Peter Meyers (Australia) -- although not in contact for the last year or so
Elmer Lane
Bob Taft
Kevin Barrett <kbarrett@merr.com>
John Wilson (Australia) common law expert and champion
Michael Chossudovsky -
Of course there are many others out there -- some perhaps better than people I know -- these are just the people I know of, or, rather, the ones who have come to my (failing) mind.
====================================================================
Items
Check out Arms Trafficking, Stolen Missiles, Soviet Submarines, Nuclear Deton
=========
www.rawstory.com/rs/2010/07/nsa-112-acres-parking-spaces/ - Cached
HUGE WASHINGTON POST EXPOSE: NSA HAS GOTTEN SO BIG, AREA AROUND IT HAS 112 ACRES OF PARKING SPACES
By Raw Story
HUGE WASHINGTON POST EXPOSE: NSA HAS GOTTEN SO BIG, AREA AROUND IT HAS 112 ACRES OF PARKING SPACES
By Raw Story
It's not just AT&T that operates or once operated a secret call center
in San Francisco intercepting your phone calls anymore:
From the road, it's impossible to tell how large the NSA has become,
even though its buildings occupy 6.3 million square feet - about the
size of the Pentagon - and are surrounded by 112 acres of parking
spaces. As massive as that might seem, documents indicate that the NSA
is only going to get bigger: 10,000 more workers over the next 15 years;
$2 billion to pay for just the first phase of expansion; an overall
increase in size that will bring its building space throughout the Fort
Meade cluster to nearly 14 million square feet.
Story continues below...
More than 250 companies - 13 percent of all the firms in Top Secret
America - have a presence in the Fort Meade cluster. Some have multiple
offices, such as Northrop Grumman, which has 19, and SAIC, which has 11.
In all, there are 681 locations in the Fort Meade cluster where
businesses conduct top-secret work...
The existence of these clusters is so little known that most people
don't realize when they're nearing the epicenter of Fort Meade's, even
when the GPS on their car dashboard suddenly begins giving incorrect
directions, trapping the driver in a series of U-turns, because the
government is jamming all nearby signals...
Once this happens, it means that ground zero - the National Security
Agency - is close by. But it's not easy to tell where. Trees, walls and
a sloping landscape obscure the NSA's presence from most vantage points,
and concrete barriers, fortified guard posts and warning signs stop
those without authorization from entering the grounds of the largest
intelligence agency in the United States.
Drinking or over-extending your credit card limit is a no-no.
Inside the locations are employees who must submit to strict, intrusive
rules. They take lie-detector tests routinely, sign nondisclosure forms
and file lengthy reports whenever they travel overseas. They are coached
on how to deal with nosy neighbors and curious friends. Some are trained
to assume false identities.
If they drink too much, borrow too much money or socialize with citizens
from certain countries, they can lose their security clearances, and a
clearance is the passport to a job for life at the NSA and its sister
intelligence organizations...
Training spies is a serious job, apparently:
That white van is followed by five others just like it. Inside each one,
two government agents in training at the secretive Joint
Counterintelligence Training Academy are trying not to get lost as they
careen around local roads practicing "discreet surveillance" - in this
case, following a teacher in the role of a spy. The real job of these
agents from the Army, U.S. Customs and other government agencies is to
identify foreign spies and terrorists targeting their organizations, to
locate the spies within and to gather evidence to take action against
them.
in San Francisco intercepting your phone calls anymore:
From the road, it's impossible to tell how large the NSA has become,
even though its buildings occupy 6.3 million square feet - about the
size of the Pentagon - and are surrounded by 112 acres of parking
spaces. As massive as that might seem, documents indicate that the NSA
is only going to get bigger: 10,000 more workers over the next 15 years;
$2 billion to pay for just the first phase of expansion; an overall
increase in size that will bring its building space throughout the Fort
Meade cluster to nearly 14 million square feet.
Story continues below...
More than 250 companies - 13 percent of all the firms in Top Secret
America - have a presence in the Fort Meade cluster. Some have multiple
offices, such as Northrop Grumman, which has 19, and SAIC, which has 11.
In all, there are 681 locations in the Fort Meade cluster where
businesses conduct top-secret work...
The existence of these clusters is so little known that most people
don't realize when they're nearing the epicenter of Fort Meade's, even
when the GPS on their car dashboard suddenly begins giving incorrect
directions, trapping the driver in a series of U-turns, because the
government is jamming all nearby signals...
Once this happens, it means that ground zero - the National Security
Agency - is close by. But it's not easy to tell where. Trees, walls and
a sloping landscape obscure the NSA's presence from most vantage points,
and concrete barriers, fortified guard posts and warning signs stop
those without authorization from entering the grounds of the largest
intelligence agency in the United States.
Drinking or over-extending your credit card limit is a no-no.
Inside the locations are employees who must submit to strict, intrusive
rules. They take lie-detector tests routinely, sign nondisclosure forms
and file lengthy reports whenever they travel overseas. They are coached
on how to deal with nosy neighbors and curious friends. Some are trained
to assume false identities.
If they drink too much, borrow too much money or socialize with citizens
from certain countries, they can lose their security clearances, and a
clearance is the passport to a job for life at the NSA and its sister
intelligence organizations...
Training spies is a serious job, apparently:
That white van is followed by five others just like it. Inside each one,
two government agents in training at the secretive Joint
Counterintelligence Training Academy are trying not to get lost as they
careen around local roads practicing "discreet surveillance" - in this
case, following a teacher in the role of a spy. The real job of these
agents from the Army, U.S. Customs and other government agencies is to
identify foreign spies and terrorists targeting their organizations, to
locate the spies within and to gather evidence to take action against
them.
=============================
From: Vicky Davis
Sent: Friday, October 15, 2010 8:24 PM
Subject: Torturing and calling it training
Why would they give a contract for anything to this guy? Please consider calling your members of Congress and put a stop to this. There is something really wrong here and I'm not talking about the money...
"War on terror" psychologist gets giant no-bid contract
http://www.salon.com/news/torture/index.html?story=/politics/war_room/2010/10/14/army_contract_seligman
The Army earlier this year steered a $31 million contract to a
psychologist whose work formed the psychological
underpinnings of the Bush administration's torture program.
The Army awarded the "sole source" contract in February to the
University of Pennsylvania for resilience training, or teaching
soldiers to better cope with the psychological strain of multiple
combat tours. The university's Positive Psychology Center,
directed by famed psychologist Martin Seligman, is conducting
the resilience training.
.....
Army resilience training is the pet project of Army Chief of Staff Gen. George Casey, previously the commander of U.S. forces in Iraq during the darkest days of the war there, from July 2004 through February 2007. Army sources say the director of the Army's resilience program, Brig. Gen. Rhonda Cornum, rammed the training contract through the Army bureaucracy on Casey's behalf.
Seligman is most famous for his work in the 1960s in which he was able to psychologically destroy caged dogs by subjecting them to repeated electric shocks with no hope of escape. The dogs broke down completely and ultimately
would not attempt to escape through an open cage door when given the opportunity to avoid more pain. Seligman called the phenomenon "learned helplessness."
New York Times
2 U.S. Architects of Harsh Tactics in 9/11's Wake
LOOK AT THE PICTURE OF THIS GUY CALLED DR. JESSON
http://www.nytimes.com/2009/08/12/us/12psychs.html?pagewanted=1&_r=2
Doc who 'inspired' torture program gets $31 million Army contract
http://www.rawstory.com/rs/2010/10/doc-torture-program-army-contract/
Sent: Friday, October 15, 2010 8:24 PM
Subject: Torturing and calling it training
Why would they give a contract for anything to this guy? Please consider calling your members of Congress and put a stop to this. There is something really wrong here and I'm not talking about the money...
"War on terror" psychologist gets giant no-bid contract
http://www.salon.com/news/torture/index.html?story=/politics/war_room/2010/10/14/army_contract_seligman
The Army earlier this year steered a $31 million contract to a
psychologist whose work formed the psychological
underpinnings of the Bush administration's torture program.
The Army awarded the "sole source" contract in February to the
University of Pennsylvania for resilience training, or teaching
soldiers to better cope with the psychological strain of multiple
combat tours. The university's Positive Psychology Center,
directed by famed psychologist Martin Seligman, is conducting
the resilience training.
.....
Army resilience training is the pet project of Army Chief of Staff Gen. George Casey, previously the commander of U.S. forces in Iraq during the darkest days of the war there, from July 2004 through February 2007. Army sources say the director of the Army's resilience program, Brig. Gen. Rhonda Cornum, rammed the training contract through the Army bureaucracy on Casey's behalf.
Seligman is most famous for his work in the 1960s in which he was able to psychologically destroy caged dogs by subjecting them to repeated electric shocks with no hope of escape. The dogs broke down completely and ultimately
would not attempt to escape through an open cage door when given the opportunity to avoid more pain. Seligman called the phenomenon "learned helplessness."
New York Times
2 U.S. Architects of Harsh Tactics in 9/11's Wake
LOOK AT THE PICTURE OF THIS GUY CALLED DR. JESSON
http://www.nytimes.com/2009/08/12/us/12psychs.html?pagewanted=1&_r=2
Doc who 'inspired' torture program gets $31 million Army contract
http://www.rawstory.com/rs/2010/10/doc-torture-program-army-contract/
============================
Economic Crisis -- Populist European Monetary Reformers Exchange Views
From: Anthony Migchels
Sent: Saturday, October 16, 2010 3:59 PM
Subject: Fwd: answer
Warmth and best wishes to all of you,
Anthony
---------- Forwarded message ----------
From: Prof. Dr. Margrit Kennedy <margritkennedy@monneta.org>
Date: 2010/10/16
Subject: Re: answer
To: Anthony Migchels <anthony.migchels@gelre-handelsnetwerken.nl>
From: Prof. Dr. Margrit Kennedy <margritkennedy@monneta.org>
Date: 2010/10/16
Subject: Re: answer
To: Anthony Migchels <anthony.migchels@gelre-handelsnetwerken.nl>
Dear Anthony Migchels,
Thank you so much for your letter and information.
Yes I agree and do think something big is brewing.
It seems most likely - from the information I am getting see below - that they (the central banks) are going to create a gold based world currency.
Yes the problem of interest is indeed little understood. We are probably going to have to wait for another round of crises before that gets tackled!
Too bad.
But thank you for the laudatio I am happy to know there are more and more people out there who are getting the message.
Best
Margrit Kennedy
Prof. Dr. Margrit Kennedy
MonNetA, Ginsterweg 3
31595 Steyerberg, Germany
Tel. +49 5764 942403
Since several appreciated the first, here's a follow up from Keith Hudson. Nadia
................................................................
After the week-end meeting of the International Monetary Fund (IMF) the two alternatives I mentioned in my last piece ("Something big in the offing", 7 October) are now more stark than ever.
<<<<
1. Some sort of world trading currency is in the offing to replace the American dollar, probably based on a revised price of gold (so that, at its institution, all government debts can be wiped out);
>>>>
Besides the BRIC countries (Brazil, Russia, India, China -- and several other developing or trying-to-develop countries also), the Institute of International Finance (IIF), representing 420 of the world's largest banks, are now calling for a world currency. The managing director, Charles Dallara, wrote to the Financial Times on 4 October (a letter which I'd missed). This is to prevent the recent devaluation skirmishes between 24 countries expanding to others and becoming an outright war. (NM: attached below)
In addition, according to Ambrose Evans-Pritchard in yesterday's Sunday Telegraph, Premier Wen of China and President Sarkozy of France have been having secret talks about a replacement for the American dollar before it makes a hard landing and pulls most other countries down with it. (No doubt Germany has also been involved.)
<<<<
2, An increasing de-coupling of trade between America and the rest of the world will be taking place from now onwards with the major Western banks increasingly servicing the latter, and America experiencing the same sort of downgrading that the UK did (and still does) during the decline of the British Empire.
>>>>
China badly needs to revalue its currency, the renminbi (yuan), upwards to stave off a massive looming domestic inflation (which could leave it in a Japanese-style stupor) but not if in subservience to the dollar. Forty-three almost bankrupt countries were bullied into this at the Bretton Woods Conference in 1944 when it was obvious that America would be the only economically healthy survivor after World War 2. Of the only two countries which at that time still exchanged their currencies for gold (besides the America itself), Japan was bullied into subservience to the dollar at the 1985 Plaza 'Agreement'. and Switzerland was inveigled into it about ten years later.
When America was becoming so spendthrift as to be no longer able to carry out its obligations to exchange its dollars for gold, President Nixon cut the link in 1971, and from then onwards all currencies started to float against one another and the dollar itself (as though the dollar itself was not also devaluing against commodities). If there had been a standard against which national currencies could be referenced, this would have been fine. Their currency values would only then depend on the relative health of their economies. But there wasn't such a standard, and national currencies have see-sawed about increasingly ever since -- much at the mercy of currency speculators such as George Soros's Quantum Fund.
Almost any standard world currency would do, so long as it is itself reasonably stable in value (not easily able to be printed or conjured up out of thin air) and beyond being tampered with by any individual government. By a process of survival of the fittest over many millennia, bartered goods became portable, valued objects of convenience -- currencies. Whether they were pieces of silver (in ancient Mesopotamia) squares of sheepskin (in Mongolia), iron nails (around Adam Smith's town of Kirkcaldy in his day), wampum shells (Northern American tribes) or gold coins (ancient Greece, China, India, Islam up to 1914 in Europe) they would do. Meanwhile, by a continuation of survival of the fittest, gold and silver became the only currencies that became trans-cultural, whether of central banks or Indian villageers.
But at present we're still stuck at Alternative 2 above. Meanwhile, the price of gold is rising at a fast, but steady pace (and silver even faster). Relative scarcity are their chief virtue of being a suitable standard. What matters is that when their prices reach high enough levels (or are promoted there by international agreement) and can pay off existing national debts then we will continue to have chaos and confusion. Whether this takes place quickly or protractedly remains to be seen.
The moment of truth will probably come only when chaos will be at the edge of complete world-wide economic collapse (and maybe revolutions in some countries) and the developed countries openly admit that neither quantitative easing nor austerity can possibly redeem the huge debts they are now carrying and hoping that taxpayers will pay off.
<<<<
1. Some sort of world trading currency is in the offing to replace the American dollar, probably based on a revised price of gold (so that, at its institution, all government debts can be wiped out);
>>>>
Besides the BRIC countries (Brazil, Russia, India, China -- and several other developing or trying-to-develop countries also), the Institute of International Finance (IIF), representing 420 of the world's largest banks, are now calling for a world currency. The managing director, Charles Dallara, wrote to the Financial Times on 4 October (a letter which I'd missed). This is to prevent the recent devaluation skirmishes between 24 countries expanding to others and becoming an outright war. (NM: attached below)
In addition, according to Ambrose Evans-Pritchard in yesterday's Sunday Telegraph, Premier Wen of China and President Sarkozy of France have been having secret talks about a replacement for the American dollar before it makes a hard landing and pulls most other countries down with it. (No doubt Germany has also been involved.)
<<<<
2, An increasing de-coupling of trade between America and the rest of the world will be taking place from now onwards with the major Western banks increasingly servicing the latter, and America experiencing the same sort of downgrading that the UK did (and still does) during the decline of the British Empire.
>>>>
China badly needs to revalue its currency, the renminbi (yuan), upwards to stave off a massive looming domestic inflation (which could leave it in a Japanese-style stupor) but not if in subservience to the dollar. Forty-three almost bankrupt countries were bullied into this at the Bretton Woods Conference in 1944 when it was obvious that America would be the only economically healthy survivor after World War 2. Of the only two countries which at that time still exchanged their currencies for gold (besides the America itself), Japan was bullied into subservience to the dollar at the 1985 Plaza 'Agreement'. and Switzerland was inveigled into it about ten years later.
When America was becoming so spendthrift as to be no longer able to carry out its obligations to exchange its dollars for gold, President Nixon cut the link in 1971, and from then onwards all currencies started to float against one another and the dollar itself (as though the dollar itself was not also devaluing against commodities). If there had been a standard against which national currencies could be referenced, this would have been fine. Their currency values would only then depend on the relative health of their economies. But there wasn't such a standard, and national currencies have see-sawed about increasingly ever since -- much at the mercy of currency speculators such as George Soros's Quantum Fund.
Almost any standard world currency would do, so long as it is itself reasonably stable in value (not easily able to be printed or conjured up out of thin air) and beyond being tampered with by any individual government. By a process of survival of the fittest over many millennia, bartered goods became portable, valued objects of convenience -- currencies. Whether they were pieces of silver (in ancient Mesopotamia) squares of sheepskin (in Mongolia), iron nails (around Adam Smith's town of Kirkcaldy in his day), wampum shells (Northern American tribes) or gold coins (ancient Greece, China, India, Islam up to 1914 in Europe) they would do. Meanwhile, by a continuation of survival of the fittest, gold and silver became the only currencies that became trans-cultural, whether of central banks or Indian villageers.
But at present we're still stuck at Alternative 2 above. Meanwhile, the price of gold is rising at a fast, but steady pace (and silver even faster). Relative scarcity are their chief virtue of being a suitable standard. What matters is that when their prices reach high enough levels (or are promoted there by international agreement) and can pay off existing national debts then we will continue to have chaos and confusion. Whether this takes place quickly or protractedly remains to be seen.
The moment of truth will probably come only when chaos will be at the edge of complete world-wide economic collapse (and maybe revolutions in some countries) and the developed countries openly admit that neither quantitative easing nor austerity can possibly redeem the huge debts they are now carrying and hoping that taxpayers will pay off.
Keith Hudson, Saltford, England
................................................................
RED ALERT TOP STORY:
The Institute of International Finance, a group that represents 420 of the world's largest banks and finance houses, has issued yet another call for a one-world global currency.
Read the latest now on RedAlert.WND.com (subscription only, but here's the text below)
Banking group calls for global currency
Seen as remedy to looming exchange wars
In advance of the International Monetary Fund and World Bank meeting in Washington last weekend, the Institute of International Finance, a group that represents 420 of the world's largest banks and finance houses, issued yet another call for a one-world global currency.
"A core group of the world's leading economies need to come together and hammer out an understanding," Charles Dallara, the Institute of International Finance's managing director, told the Financial Times in London.
An IIF policy letter authored by Dallara and dated Oct. 4 made clear that global currency coordination was needed in the group's view to prevent a looming currency war.
"The narrowly focused unilateral and bilateral policy actions seen in recent months – including many proposed and actual measures on trade, currency intervention and monetary policy – have contributed to worsening underlying macroeconomic imbalances," Dallara wrote. "They have also led to growing protectionist pressures as countries scramble for export markets as a source of growth."
Dallard encouraged a return to the G-20 commitment to utilize International Monetary Fund special drawing rights to create an international one-world currency alternative to the U.S. dollar as a new standard of foreign-exchange reserves.
U.N. calls for 1-world currency
A United Nations report released in July calls for the replacement of the dollar as the standard for holding foreign-exchange reserves in international trade with a new one-world currency issued by the International Monetary Fund.
The 176-page report titled "United Nations World Economic and Social Survey 2010," was issued at a high-level meeting of the U.N. Economic and Social Council and published in its entirety on the U.N. website.
"The risk of exchange-rate instability and a hard landing of the dollar could be reduced by having a global payments and reserve system which is less dependent on one single national currency," the report noted.
The solution the U.N. report recommended was expanding Special Drawing Rights, or SDRs, at the International Monetary System, with the goal of replacing the dollar as the accepted international standard for holding foreign-exchange reserves.
"A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency," the U.N. report said.
By placing this statement in print, the United Nations has formally gotten behind a plan that was first advanced by Robert Mundell, the creator of the euro, and later funded through the G-20 by the Obama administration, even though the plan to advance IMF SDRs ultimately means the death of the dollar as the world's standard for international trade.
Let's quickly review the background and the history of the issue.
What are IMF Special Drawing Rights?
SDRs are international reserve assets that are calculated by the IMF in a basket of major currencies that are allocated to the IMF 185 member nation-states in relation to the capital, largely in gold or widely accepted foreign currencies that the IMF member nation-states have on deposit with the IMF.
As Red Alert previously reported, the proposal originally advanced by China and Russia would issue SDRs to central banks of IMF member states far in excess of any gold or currency reserves the member states have on deposit with the IMF.
The idea is to utilize the little-understood and largely-ignored SDRs in a new capacity, as a sort of an international overdraft facility made available to bankrupt of financially failing IMF member nation-states, originated with Ted Turner, formerly a senior official at both the Federal Reserve and the U.S. Treasury.
The IMF created SDRs in 1969 to support the Bretton Woods fixed exchange-rate system.
"The international supply of two key reserve assets – gold and the U.S. dollar – proved inadequate for supporting the expansion of world trade and financial development that was taking place," a document on the IMF website explains. "Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF."
When the Bretton Woods fixed-rate system collapsed, major world currencies, including the dollar, shifted to a floating exchange-rate system where the price of the dollar and other major world currencies was created by trading on international currency exchanges.
Until the current global economic crisis, SDRs issued by the IMF have been used by IMF member nation states primarily as a reserve account to support international trade transactions, not as an alternative international currency available to settle international debt transactions in danger of default.
'Fathers of the 1-world currency'
WND has previously reported that strong support for the idea of a one-world currency has come from Canadian economist and Nobel Prize winner professor Robert Mundell, an influential proponent who is credited with having formulated the intellectual basis for creating the euro.
Mundell, currently an adviser to China, was the originator of the suggestion that the IMF should utilize SDRs to replace the dollar as a new world standard for holding foreign-exchange reserves in international trade transactions.
WND has also reported Benn Steil, a senior fellow and director of international economics at the Council of Foreign Relations, wrote in the May/June 2007 issue of the Council of Foreign Relations' Foreign Affairs magazine an article titled, "The End of National Currency," in which his major conclusion was that "countries should abandon monetary nationalism."
Steil tempered his embrace of one-world currency, writing, "Governments should replace national currencies with the dollar or the euro or, in the case of Asia, collaborate to produce a new multinational currency over a comparably large and economically diversified area."
G20 meeting in London supported IMF 1-world currency
Red Alert also reported that the G20 summit meeting in London in April took an important step to create a new one-world currency through the International Monetary Fund that is designed to replace the dollar as the world's foreign-exchange reserve currency of choice.
Appearing on Fox News' "The Sean Hannity Show," political consultant Dick Morris and Hannity agreed the decision by the G20 proved the "conspiracy theorists were right" and there is now clear evidence of a plan to create a one-world currency.
Point 19 of the final communiqué from the G20 summit in London on April 2, 2009, specified that, "We have agreed to support a general SDR which will inject $250 billion into the world economy and increase global liquidity," taking the first steps forward to implement China's proposal that Special Drawing Rights at the International Monetary Fund should be created as a foreign-exchange currency to replace the dollar.
"I think the dollar is now under question," billionaire investor George Soros told CNBC, commenting that the goal was to create an IMF rather than the dollar to use in international trade.
Red Alert has also reported that the United Nations has supported the IMF plan, to utilize SDRs as an alternative to the dollar to settle international trade transactions.
Red Alert believes we are witnessing the death of the dollar under the Obama administration.
The Institute of International Finance, a group that represents 420 of the world's largest banks and finance houses, has issued yet another call for a one-world global currency.
Read the latest now on RedAlert.WND.com (subscription only, but here's the text below)
Banking group calls for global currency
Seen as remedy to looming exchange wars
In advance of the International Monetary Fund and World Bank meeting in Washington last weekend, the Institute of International Finance, a group that represents 420 of the world's largest banks and finance houses, issued yet another call for a one-world global currency.
"A core group of the world's leading economies need to come together and hammer out an understanding," Charles Dallara, the Institute of International Finance's managing director, told the Financial Times in London.
An IIF policy letter authored by Dallara and dated Oct. 4 made clear that global currency coordination was needed in the group's view to prevent a looming currency war.
"The narrowly focused unilateral and bilateral policy actions seen in recent months – including many proposed and actual measures on trade, currency intervention and monetary policy – have contributed to worsening underlying macroeconomic imbalances," Dallara wrote. "They have also led to growing protectionist pressures as countries scramble for export markets as a source of growth."
Dallard encouraged a return to the G-20 commitment to utilize International Monetary Fund special drawing rights to create an international one-world currency alternative to the U.S. dollar as a new standard of foreign-exchange reserves.
U.N. calls for 1-world currency
A United Nations report released in July calls for the replacement of the dollar as the standard for holding foreign-exchange reserves in international trade with a new one-world currency issued by the International Monetary Fund.
The 176-page report titled "United Nations World Economic and Social Survey 2010," was issued at a high-level meeting of the U.N. Economic and Social Council and published in its entirety on the U.N. website.
"The risk of exchange-rate instability and a hard landing of the dollar could be reduced by having a global payments and reserve system which is less dependent on one single national currency," the report noted.
The solution the U.N. report recommended was expanding Special Drawing Rights, or SDRs, at the International Monetary System, with the goal of replacing the dollar as the accepted international standard for holding foreign-exchange reserves.
"A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency," the U.N. report said.
By placing this statement in print, the United Nations has formally gotten behind a plan that was first advanced by Robert Mundell, the creator of the euro, and later funded through the G-20 by the Obama administration, even though the plan to advance IMF SDRs ultimately means the death of the dollar as the world's standard for international trade.
Let's quickly review the background and the history of the issue.
What are IMF Special Drawing Rights?
SDRs are international reserve assets that are calculated by the IMF in a basket of major currencies that are allocated to the IMF 185 member nation-states in relation to the capital, largely in gold or widely accepted foreign currencies that the IMF member nation-states have on deposit with the IMF.
As Red Alert previously reported, the proposal originally advanced by China and Russia would issue SDRs to central banks of IMF member states far in excess of any gold or currency reserves the member states have on deposit with the IMF.
The idea is to utilize the little-understood and largely-ignored SDRs in a new capacity, as a sort of an international overdraft facility made available to bankrupt of financially failing IMF member nation-states, originated with Ted Turner, formerly a senior official at both the Federal Reserve and the U.S. Treasury.
The IMF created SDRs in 1969 to support the Bretton Woods fixed exchange-rate system.
"The international supply of two key reserve assets – gold and the U.S. dollar – proved inadequate for supporting the expansion of world trade and financial development that was taking place," a document on the IMF website explains. "Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF."
When the Bretton Woods fixed-rate system collapsed, major world currencies, including the dollar, shifted to a floating exchange-rate system where the price of the dollar and other major world currencies was created by trading on international currency exchanges.
Until the current global economic crisis, SDRs issued by the IMF have been used by IMF member nation states primarily as a reserve account to support international trade transactions, not as an alternative international currency available to settle international debt transactions in danger of default.
'Fathers of the 1-world currency'
WND has previously reported that strong support for the idea of a one-world currency has come from Canadian economist and Nobel Prize winner professor Robert Mundell, an influential proponent who is credited with having formulated the intellectual basis for creating the euro.
Mundell, currently an adviser to China, was the originator of the suggestion that the IMF should utilize SDRs to replace the dollar as a new world standard for holding foreign-exchange reserves in international trade transactions.
WND has also reported Benn Steil, a senior fellow and director of international economics at the Council of Foreign Relations, wrote in the May/June 2007 issue of the Council of Foreign Relations' Foreign Affairs magazine an article titled, "The End of National Currency," in which his major conclusion was that "countries should abandon monetary nationalism."
Steil tempered his embrace of one-world currency, writing, "Governments should replace national currencies with the dollar or the euro or, in the case of Asia, collaborate to produce a new multinational currency over a comparably large and economically diversified area."
G20 meeting in London supported IMF 1-world currency
Red Alert also reported that the G20 summit meeting in London in April took an important step to create a new one-world currency through the International Monetary Fund that is designed to replace the dollar as the world's foreign-exchange reserve currency of choice.
Appearing on Fox News' "The Sean Hannity Show," political consultant Dick Morris and Hannity agreed the decision by the G20 proved the "conspiracy theorists were right" and there is now clear evidence of a plan to create a one-world currency.
Point 19 of the final communiqué from the G20 summit in London on April 2, 2009, specified that, "We have agreed to support a general SDR which will inject $250 billion into the world economy and increase global liquidity," taking the first steps forward to implement China's proposal that Special Drawing Rights at the International Monetary Fund should be created as a foreign-exchange currency to replace the dollar.
"I think the dollar is now under question," billionaire investor George Soros told CNBC, commenting that the goal was to create an IMF rather than the dollar to use in international trade.
Red Alert has also reported that the United Nations has supported the IMF plan, to utilize SDRs as an alternative to the dollar to settle international trade transactions.
Red Alert believes we are witnessing the death of the dollar under the Obama administration.
---------------------
There's no virtue [or] value, in maximizing consumption. You want to maximize satisfactions. And you want to get your satisfactions with a minimum of consumption. E.F. Schumacher
Am 14.10.2010 um 22:14 schrieb Anthony Migchels:
dear Mrs. Kennedy,
I write you this time with a very different story.
In America a fierce debate is starting between the interest free money people and the Goldbugs. You can find the basics here:
http://www.activistpost.com/2010/10/after-fed-solutions-debate-begins.html
I have been anticipating this debate for years. It was bound to happen once the fractional reserve banking fraud was exposed.
In America there is an astute awareness of fractional reserve banking and the nefarious nature of the banking community. However: they are relatively blind to the effects of interest.
Interest is one of the few concepts which is better understood in Europe than in America and you are of course one of the reasons for that.
I had the privilege of producing this piece on Henry Makow's site: http://www.henrymakow.com/interest_-_our_invisible_slave.html
Of course, you will find that all the data in the piece could not have been produced without your work. I therefore out of respect send you this for your information. I did mention you as THE source in the original contribution. But the editor left that bit away for reasons of conciseness. However, he does link to an interview with you in which you spell out the basics.
Just to let you know. Something very big is brewing. Your efforts have been indispensible in the debate that is now starting.
Warmest regards,
Anthony Migchels,
Arnhem, the Netherlands2010/9/7 Prof. Dr. Margrit Kennedy <margritkennedy@monneta.org>Please mention as the source Bernard Lietaer and my presentation<pastedGraphic.tiff>
Margrit KennedyProf. Dr. Margrit KennedyMonNetA, Ginsterweg 331595 Steyerberg, GermanyTel. +49 5764 942403
Am 07.09.2010 um 11:13 schrieb Anthony Migchels:
Dear Mrs. Kennedy,My name is Anthony Migchels from the Gelre in the Netherlands and we have met in january last year in Amsterdam, where we both spoke at the Balie Conference on Alternative Monetary Systems.I have a request. In your (wonderful) essay on 'Why we need Monetary Innovation' there is a graph in 'result 3, monetary instability'.This graph is very illuminating and we intend to use it in a booklet about the Gelre.
Would you mind if we do so?Also: do you have a more recent graph? I heard one up to 2008 is available?Thank you very much,Anthony Migchels
__._,_.___
--
Palash Biswas
Pl Read:
http://nandigramunited-banga.blogspot.com/
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