May 142011
 
Bailouts, stimulus packages, debt piled upon debt, where will it all end? [Editors Note: Its time for another dose of what is really happening in our economy.  Its all about debt!  So here it is in 10 minute doses.  don’t miss an episode. – Michel] httpv://www.youtube.com/watch?v=lG7Jjb0cw9o How did we get into a situation where there has never been more material wealth & productivity and yet everyone is in debt to bankers? And now, all of a sudden, the bankers have no money and we the taxpayers, have to rescue them by going even further into debt! Money as Debt II Explores the baffling, fraudulent and destructive arithmetic of the money system that holds us hostage to a forever growing DEBT…and how we might evolve beyond it into a new era. http://www.moneyasdebt.net/         Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 142011
 
Bailouts, stimulus packages, debt piled upon debt, where will it all end? [Editors Note: Its time for another dose of what is really happening in our economy.  Its all about debt!  So here it is in 10 minute doses.  don’t miss an episode. – Michel] httpv://www.youtube.com/watch?v=pp7tiySCyb4   How did we get into a situation where there has never been more material wealth & productivity and yet everyone is in debt to bankers? And now, all of a sudden, the bankers have no money and we the taxpayers, have to rescue them by going even further into debt! Money as Debt II Explores the baffling, fraudulent and destructive arithmetic of the money system that holds us hostage to a forever growing DEBT…and how we might evolve beyond it into a new era. http://www.moneyasdebt.net/     Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 132011
 
Bailouts, stimulus packages, debt piled upon debt, where will it all end? [Editors Note: Its time for another dose of what is really happening in our economy.  Its all about debt!  So here it is in 10 minute doses.  don’t miss an episode. – Michel] httpv://www.youtube.com/watch?v=_doYllBk5No How did we get into a situation where there has never been more material wealth & productivity and yet everyone is in debt to bankers? And now, all of a sudden, the bankers have no money and we the taxpayers, have to rescue them by going even further into debt! Money as Debt II Explores the baffling, fraudulent and destructive arithmetic of the money system that holds us hostage to a forever growing DEBT…and how we might evolve beyond it into a new era. http://www.moneyasdebt.net/   Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 102011
 
From: EconMilitia | Mar 3, 2010 How influential is the Federal Reserve System, the US central bank? Central banks typically establish credit for the government with other governments, and store tax receipts. But with passage of the Federal Reserve Act in 1913, liberal Democrats in the US forever changed the landscape of banking. The Fed, you see, is a nongovernmental regulatory body. They’re tightly controlled by the government, but work outside the normal transparency and accountability requirements of the government. Our government is accountable and transparent? Relative to the Fed, yes! Ron Paul is the latest politician to call for an open, public accounting of the Federal Reserve System, but since its’ inception, the star chamber-like entity has been impervious to attack. Did you know the Fed was established after an election when the “money trust” was the villain? In 2008, it was Goldman Sachs and “Main Street, not Wall Street” that helped catapult President Obama and a liberal agenda to the fore, but in 1912, it was “the domination of the money trust.” Just like promises to end the wars in Iraq and Afghanistan, and to close Gitmo, and to make government more transparent, Democrats also lied and misled in 1912. And that was before Rush Limbaugh and Glenn Beck, so who did they have to blame? Tell truth to power. Hear the real story. Think for yourself. Join the conversation at econmilitia.com. (less info) View comments, related videos, and more httpv://www.youtube.com/user/EconMilitia#p/u/1/TNr0qAEzZ0c   Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 012011
 
The Telegraph UK James Quinn Liam Halligan http://www.telegraph.co.uk/finance/comment/liamhalligan/8484530/Americas-reckless-money-printing-could-put-the-world-back-into-crisis.html Last week, Ben Bernanke suggested that the US base interest rate will stay close to zero for an “extended period”. It’s been there since December 2008. The US currency has also been falling pretty steadily since the summer of 2010, after Ben Bernanke gave the first inklings he would launch QE2. Photo: AP By Liam Halligan 5:15PM BST 30 Apr 2011Traders took these words to mean that the Federal Reserve won’t hike rates until the first few months of 2012 at the earliest. Bernanke also pledged to do whatever is required to keep America’s economic recovery on track – confirming that the second programme of “quantitative easing”, or QE2, would be completed. These two related announcements – the “reprieve” and the “sugar rush” – sent Wall Street into renewed spasms of synthetic joy. In the real world, US growth is slowing sharply. Annualised GDP rose just 1.8pc during the first three months of 2011, down from 3.1pc the quarter before. America remains mired in sovereign, commercial and household debt. Yet as the Fed chairman spoke, US stocks hit their highest level since before the sub-prime crisis. The tech-heavy Nasdaq, incredibly, closed at a 10-year peak. So the Fed will keep on “printing” virtual money – at least for now. By the end of June, it will have purchased $600bn (£363bn) of longer-term Treasuries, with the US government effectively buying its own debt from funds created ex nihilo. That’s on top of the original $1,750bn (£1,048bn) QE scheme, launched in late 2008. America’s base money supply – the bedrock of the world’s reserve currency – has doubled in little more than two years. Despite consternation among many US voters, and dismay – rapidly turning to anger – across the world, most of America’s political elite refuse even to debate QE. Such is the state of democracy in the “land of the free and the home of the brave”. And America is not alone. Bernanke’s utterances caused gold to jump another 2pc. Silver – known as “poor man’s gold”, another “inflation hedge” – spiked 6.5pc. But the real story was the plunging dollar. Against a basket of five major global currencies, the US currency fell sharply and is now at its weakest since July 2008. The Fed’s “real broad dollar index”, a 26-currency composite and adjusted for inflation, is testing levels not seen since 1979. Yet still (more…)
Apr 282011
 
Gold prices closed Wednesday at a new record high of $1528.30 per ounce on the New York Spot Market following comments from Federal Reserve Chairman Ben Bernanke. The Fed Chairman signaled the Fed would complete its $600 billion bond-buying program as scheduled, with no plans to raise interest rates in the near future. Silver prices rose over 4% to $47.79 per ounce. “The Fed kept [talking] about keeping rates low for an extended time; you had buyers jump on the gold and silver bandwagon because of that,” said Matt Zeman, head of trading at Kingsview Financial. Market watchers were interpreting Mr. Bernanke&’s comments as an indication the central bank might tolerate higher inflation, which can be a positive for gold and silver. Easy monetary policy has helped spur gold and silver prices to recent record highs. “They’ve said that there’s no imminent reason to change policy,” said Jim Steel, senior vice president and metals analyst with HSBC Holding in New York. “That implies that monetary policy will be accommodative perhaps longer than expected.” The Fed’s statement also pressured the U.S. dollar, further boosting the precious metals. Dollar-denominated gold and silver tend to rise when the dollar falls because they become less expensive for buyers using other currencies, helping demand. (Sources: “Gold Extends Record During Bernanke Conference,” Wall Street Journal, April 27,2011   Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Apr 252011
 
From BBC News Business 25 April 2011 Last updated at 08:32 ET The prices of gold and silver have hit new record highs, driven by a weaker US dollar and continuing tensions in the Middle East and North Africa. Gold rose as high as $1,518.30 (£918.70) an ounce during morning trading in Europe, before falling back. Silver briefly reached an all time high of $49.79 an ounce before retreating to $49, still the highest since 1980. Investors have been buying precious metals as a haven against inflation and recent geopolitical turmoil. Analysts say gold could even trade even higher. “We as a company believe that we may see $1,600 an ounce by the end of the year,” said Angelos Damaskos, a fund manager at Sector Investments, which specialises in gold and oil investments. “But gold could easily surprise everybody and go to significantly higher levels because of the relatively small supply of the metal.” Monday was the seventh consecutive trading session that saw the price of gold rise. The price of gold has risen sixfold in the last 10 years, and has more than doubled since the global financial crisis of 2008. However, the price of silver has been even more volatile, having quintupled since 2008, and up 12-fold in the last decade. By mid-morning in London on Monday, silver was trading just below the high of $49.45 that it reached in 1980 following the Iranian revolution and related oil price spike. ‘Dollar play’ Much of the rise in both metals is seen as the flipside of a decline in the US dollar. “It’s the dollar play,” said a Singapore-based dealer, referring to the gold rally. “There is more room for prices to go even higher.” LAST UPDATED AT 21 APR 2011, 11:20 ET  price change % 46.26 0.00 0.00 The greenback has been steadily declining against most other currencies since the end of the financial crisis. With the US central bank, the Federal Reserve, pumping unprecedented amounts into the financial markets, there are fears the dollar may lose its status as the favourite reserve currency of the world’s central banks, with precious metals being an obvious alternative. On Wednesday, the Fed chairman, Ben Bernanke, is expected to affirm its commitment to quantitative easing, a programme to flood money markets with liquidity. The policy tends to drive down the value of the US currency, and has been openly criticised by China and (more…)
Apr 242011
 
I posted “Money As Debt” on this blog 2 days ago.  All of the Part I videos are in 10 minute segments.  They are contiguous so come back and view them all. The video below is an independent production introducing the 5 part “Money As Debt” Series. You may click on this link to continue to”Money As Debt” post. httpv://www.youtube.com/watch?v=kScxoRpGDj0&feature=related Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Apr 212011
 
[This is a short course made a available in 10 minute segments.  There are 5 segments, so, bookmark this page to return frequently to finish and review the course.] Money as Debt is a short animated documentary film by Canadian artist and filmmaker Paul Grignon about the monetary systems practiced through modern banking. The film presents Grignon’s view of the process of money creation by banks and its historical background, and warns of his belief in its subsequent unsustainability The film was conceived by Grignon in 2002 as an introduction to a 5-hour video commission for United Financial Consumers. He prefaced his video lecture with a re-telling of The Goldsmith’s Tale in animation form titled Money as Debt. The Goldsmith’s Tale is noted in the film as being “a brief and broadly allegorical history of banking” and should not be viewed as a complete or entirely accurate account of the history of banking. Expanded in 2006, it was Grignon’s first full animation project. Much of the film presents the filmmaker’s understanding of modern money creation in a fractional-reserve banking system. Other forms of money creation, such as quantitative easing, receive less attention. In the film’s version, new money enters the economy through the indebtedness of borrowers, thus not only obligating the public to the money-issuing private banks but also creating an endless and self-escalating debt that is to eventually outgrow all other forms of wealth generation. The film claims that this ever-increasing gravitation of money to banks is capable of impoverishing any nation. The film finishes by identifying some alternatives to modern banking, such as the nationalization of banks and payment of dividends to the public, establishing local exchange trading systems, or government printing of money. Money As Debt (1 of 5) httpv://www.youtube.com/watch?v=vVkFb26u9g8   Money As Debt (2 of 5) httpv://www.youtube.com/watch?v=sanOXoWl0kc&NR=1&feature=fvwp   Money As Debt (3 of 5) httpv://www.youtube.com/watch?v=kTv1fo6sKmo&feature=related   Money As Debt (4 of 5) httpv://www.youtube.com/watch?v=3qicabStQkc&feature=related   Money As Debt (5 of 5) httpv://www.youtube.com/watch?v=7kpSbkaD4tM&feature=related Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Apr 202011
 
By Ben Rooney, staff reporterApril 15, 2011: 2:36 PM ET   NEW YORK (CNNMoney) — The push to replace the U.S. dollar as the world’s reserve currency has been gaining steam, with one expert arguing that America “must give up on the dollar.” In a Financial Times op-ed, Michael Pettis, a finance professor at Peking University, said U.S. policymakers should lead the charge to create a more diverse reserve system, “in which the dollar is simply first among equals.” The dollar has been the dominant reserve currency for decades, with central banks and other institutions around the world amassing vast reserves. Pettis argues that this has resulted in dangerous trade imbalances that threaten to destabilize the global economy. He contends that countries such as China have been able to “game the system” by stockpiling dollars, which has allowed them to grab a larger share of global demand for goods and services. At the same time, the U.S. economy has suffered as money rushes out of the country and into red-hot emerging markets. Pettis said this leaves the United States with a stark choice between further pain in the job market, as demand continues to shift overseas, or adding to already massive deficits to finance domestic growth. “Americans, in other words, must choose between higher unemployment and higher debt,” Pettis wrote. As such, the United States may eventually need to force the rest of the world to gradually “disengage” from the dollar as a reserve currency if it continues to decline. Tales from inside the manufacturing boom The dollar index, which measures the greenback against a basket of currencies, has fallen 5% so far this year to around 74.80. That’s down from a high near 87 in June of 2009, as jittery investors flocked to the dollar for safety. However, there is not an obvious alternative to the dollar. Pettis suggested that the euro could emerge over the next decade, since no other world currency has “the necessary characteristics to allow it plausibly to serve the needs of the global economy.” But he suggested that European officials would resist taking on the responsibility, since it would saddle the European Union with the same burdens currently facing the United States. Meanwhile, the International Monetary Fund has proposed a larger role for its special drawing rights, or SDRs, in the global reserve system. SDRs represent potential claims on the currencies of IMF members. They were created (more…)