We just had yet another election and now Congress is pushing our government off the fiscal cliff. Everyone is focused on this cliff while ignoring the real fiscal cliff: the annihilation of our sovereign wealth. This was caused by military overseas spending, the US imperial work since WWII, free trade causing our trade deficit to soar to incredible levels and the floating fiat currency regime imposed by Nixon one fine Sunday several decades ago. This real fiscal cliff has destroyed our capital base pretty completely so to keep lending money, the bankers rigged up the odious derivative bank and insurance schemes which circumvent the need for real capital. Only, this collapsed.
There have been zero actual real reforms since then. The US still runs immense trade deficits. The dollar has lost a great deal of value since then with inflation in food, fuel and other things shooting upwards rapidly or in the case of fuel, rising and falling in cycles of great disturbance since this is connected to US foreign policies. The agony the US public is seeing is the price we pay for cheap 72″ TVs. We love the cheap manufactured goods from Asia and choose to ignore the damage this is doing to our own capital base.
All the bright minds in our media love to mumble and groan about the economic mess our elites cooked up for us but seem unable to grasp where the real dangers are. For example, they dare not say openly that the entire gigantic $66+ trillion derivatives market is a total fraud. Here is the Bilderberg guy who owns the NYT muttering about how to fix the system: Could A.I.G. Happen Again? – NYTimes.com
While those agencies have made some progress, like requiring derivative trades to be more transparently traded and reported, they have completed just one-third of the rules required by the law. The things regulators have yet to finish include imposing limits on the size of bets investors can make using credit default swaps and other exotic financial instruments, and also requiring investors to maintain sufficient reserves to make good on all of those bets.
Transparent trades of ponzi scheme items doesn’t fix the ponzi scheme’s end result with the pyramid collapsing. Requiring ‘sufficient reserves’ is a hoax, too. The US has no reserves left. We have negative sovereign wealth. Below are some samples of previous articles I have written about sovereign wealth:
The infantile inability to talk about money honestly isn’t accidental. It is most deliberate. People have discussed ‘what is money’ and ‘what is wealth’ for eons. Since ancient times, this topic has gone from quite sophisticated to varying levels of barbaric indifference to reality. We had intelligent discussions of gold, silver and capital back in 1890 but not today. Today, we have tons of wishful thinking from the top, middle and bottom while ignoring economic realities that are now hammering us.
Thanks to the floating fiat currency scam, we simply print more money at zero interest rate and have zero capital financing in a deeply in debt culture and pretend this won’t have a bad ending. Here is a prime example showing crystal clear how badly degraded our money system is today: We’re losing $$ by making coins – NY Daily News
A penny costs more than two cents to make and a nickel costs more than 11, but the U.S. Mint’s test of 29 cheaper alloys failed to identify substitute metals.
Here is my comment at the NYT about the AIG article:
First, the US cut the gold standard and instituted the infamous ‘floating currency’ regime. Since the US dollar was the coin of international trade, we began printing money like crazy. This caused real capital to vanish.
The dollar has lost 90% of its pre-Nixon gold severance value. The penny today costs two pennies to mint which shows the inflationary destruction of capital quite clearly.
Capital was replaced by derivatives. This way, banks could lend money with near zero capital. Which they merrily did until they crashed their own system!
The entire derivatives contract market is fraud. It should be terminated, not protected. AIG was a capital-less con operation set up to act as if they had money to give to losers in the derivatives scheme games only they had nothing except other derivative paper entities, no ‘money’.
Meanwhile, both Germany and especially China and incidentally, our ‘ally’ Japan built up huge capital holdings in their FOREX funds and buying bonds and have the greatest sovereign wealth whereas the US collectively has the least sovereign wealth which is actually a deficit, we have zero sovereign wealth while our trade partners have trillions in sovereign wealth.
The loss of this capital for our entire nation is most dangerous and virtually no one talks about sovereign wealth. This is delusional.
It will be a cry in the dark, of course. Instead of sharp alarm that pennies and nickels are devalued in face value by well over 150%, whereby the minting of coins is more expensive than the face value…I saw this before! I remember well how silver became more valuable as melted down metal than as coins back when Nixon cut the gold standard. We collected silver coins and melted these down with our home kiln and sold the metal for twice the value of the coins. So the government made this illegal.
This meant, we had to send our silver coins overseas to do this and silver coins drained out of circulation very fast. This is now the case, again. Is Congress holding hearings about how coins no longer reflect the value of metal? Nope. We hack about the bush, determined to never catch up with the rabbit that has escaped from the magician’s top hat.
Japan is collapsing, too. So the people there go from one inept party to another corrupt party: Abe’s election in Japan will affect America’s Asian pivot – The Washington Post
The LDP victory was more a rebuke of the DPJ than a resounding endorsement of the LDP. Although voters see the LDP as more experienced and disciplined than the DPJ, they perceive that it has done little to reform itself since its defeat in 2009. For instance, all five contenders for the party presidency in October (Abe, Yoshimasa Hayashi, Shigeru Ishiba, Nobuteru Ishihara and Nobutaka Machimura) are the sons of LDP politicians, despite widespread criticism of the LDP’s perpetuation of inbred political dynasties….For the Obama administration, the good news is that Abe is staunchly pro-American and wants to strengthen the U.S.-Japan security relationship. The bad news is that his revisionist views of history and controversial views of Asia could lead him to speak and act in ways that exacerbate tensions with neighboring countries, especially China and South Korea.
Good news: this clown is our friend. The bad news is, he will drag us into WWIII in Asia! Whoopee. He isn’t a friend, he views the US as the Dumb Giant to be used as a tool in Asia to expand Imperial Japan. Great. And we play the Dumb Giant role because we are stupid and very large. And very stupid. And the only problem Japan has is that China and Korea both have used the Dumb Giant the same way minus the imperial angle, of course. This Dumb Giant made both Japanese rivals who hate Japan, much stronger!
Proof that the US 1% rich are insane: Tagg Romney: Mitt ‘Wanted To Be President Less Than Anyone I’ve Met’. Of course, we didn’t want him, either. And the GOP voting base disliked him, too. But this whining by the very rich who thought they could buy our elections is sad, no? Now that he failed to buy the White House, he is whining about how he didn’t really want this. Which is why he ran nonstop for a decade. Yup.
This wretched family should look to see how great wealth bought via playing the derivatives game overseas has rotted their brains. The entire generation of second hand wealth is devolving rapidly into moronic drooling. Far from being astute business people, the looting of America was set up so to be as simple as possible. Heartless disregard for the damage being inflicted was the main qualification for getting rich. They basically took the rich US which was the sovereign wealth capital of the world and turned it, via their hard dedicated efforts into a helpless, deep in debt giant that has minimal manufacturing and an immense loss of sovereign wealth.
We are still stuck in Afghanistan bleeding life blood as well as debt-driven monetary losses: Navy SEAL commander in Afghanistan dies in apparent suicide. Geronimo is laughing somewhere in the afterlife sitting there, cross-legged, drinking cactus juice with bin Laden. Both want their skulls back. I still maintain, the need for no photos and no body of bin Laden was due to the simple reason, the SEAL guys gave his head to the Skull and Bones people here in the US.
They are devotees to black magic and don’t understand how the Outer Darkness works and how their schemes to use the magic power of dead foes is backfiring badly. True, they still get rich and powerful but they are relentlessly destroying the US. Now, the plan of Geronimo and bin Laden was…to destroy US military and financial power. And this is in full operation. Much of the SEAL team that killed bin Laden is also dead. For one of these to shoot himself is dark humor for the Afghanis who are still gunning us down at close range: Afghan Policewoman Kills US Adviser.
Meanwhile, the clowns in DC keeping us in Afghanistan until Hell freezes over is busy in a typical bipartisan move, while we are going over the fiscal cliff, to pass laws that please AIPAC: House Letter: Close PLO, Defund UN to Punish Recognition of Palestine — News from Antiwar.com
A letter pushed by Israeli Lobby faction AIPAC and signed by more than half of the members of the US House of Representatives is demanding that the Obama Administration move against the Palestinian Liberation Organization (PLO) to express “displeasure” for Palestine gaining recognition as a non-member observer status at the United Nations…The letter got its start with Reps. Ileana Ros-Lehtinen (R – FL) and Howard Berman (D – CA), and follows an attempt to add similar language in the NDAA in the Senate, though it never came to a vote.
Typically, our Zionist media suddenly can’t see the news right in front of their own noses. Our media pretends Congress is divided. It isn’t. It does become magically divided the minute it talks about giving something to Americans or saving us or stopping mass murderers. But when it comes to Israel, it is nearly 100% in the pocket of AIPAC.
The UN is too useful to the US so this was a sop to the Zionists to talk about this bill while not passing it. The US pretends, still, to arbitrate there but is clearly entirely run by Netanyahu so there is no arbitration at all. Instead, we keep on spending trillions on wars with Muslims while letting Japan run amok in Asia. We can’t control China but we can control both Israel and Japan very easily. The fact that they control us is the problem and it is part of the problem of how our elections are run via money flowing in, unimpeded by the Supreme Court, into election TV ads that are mostly frauds.
And it seems that all these people are determined to prevent us from understanding what money is and how it works as capital. I say, the US is running an ANTI-capitalist system and this is a very bad thing.
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