Ch 11.2 - Central Banking/Fiat/Inflation
"When an abuser controls your finances they control you." - UK anti-abuse poster
Narrative: The Federal Reserve serves an important function by acting as a shock absorber in times of crisis. We need an independent Fed to help regulate the economy. Inflation is caused by greedy corporations, and deficits don’t matter.
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a. Central Banking
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"Money, being naturally barren, to make it breed money is preposterous and a perversion from the end of its institution, which was only to serve the purpose of exchange and not of increase...Men called bankers we shall hate, for they enrich themselves while doing nothing." - Aristotle, Politics
"For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows." - 1 Timothy 6:10 KJV
No one loves money more than the Central bankers who run the monetary system. The debt-based fiat Ponzi system we're living under is ending. A biometric social credit-based panopticon is going to take its place. We've had many monetary systems throughout history:
211BC Rome (455 years) - Roman Denarius
244 Dark Ages (856 years) - n/a
1100 Florence/Venice (350 years) - Italian Florin / Ducat
1450 Portugal (80 years) - Portuguese Real
1530 Spain (110 years) - Spanish Real
1640 Netherlands (80 years) - Dutch Guilder
1720 France (95 years) - French Livre
1815 Great Britain (129 years) - British Sterling
1921 United States (77 years) - US Dollar/Bretton Woods/Eurodollar
"Before the Glass-Steagall Act of 1932, which allowed the Fed to borrow against a broader range of collateral, its balance sheet consisted mainly of gold. As its size has mushroomed over the decades, it has also deteriorated in quality, consisting of more assets of a riskier nature (the Fed was willing to buy high-yield corporate debt during the pandemic), while the proportion of gold held has fallen to near zero." - Unknown
"He who controls the money supply of a nation controls the nation." - James A. Garfield
"Types of gangsters:
Amateur - Gangster/Typical Street Thug
Intermediate - Mobster/Organized Criminal
Advanced - Politician
God Mode - Central Banker" - Unknown
The Central banks include the Federal Reserve, ECB, BOJ, BOE, and many others. They, in turn, take orders from the World Bank, the Bank of International Settlements (BIS), and the International Monetary Fund (IMF). The World Bank is responsible for making loans and financing poorer nations. It finances itself by issuing bonds. The Bank of International Settlements, headquartered in Basel, Switzerland, is the bank for the central bankers. The International Monetary Fund is supposed to stabilize the system and is responsible for bailouts when member nations have financial difficulties. It gets its money from the member nations.
"Powell is a pawn. He is NOT the one calling the shots. The King on the chessboard resides in the square known as 'The City Of London.'" - Unknown
"A central bank is communism. A progressive tax system is communism." - Unknown
"90% of communizing a country is establishment of a central bank." - Lenin
"The essence of all slavery consists in taking the product of another's labor by force. It is immaterial whether his force be founded upon ownership of the slave or ownership of the money that he must get to live." - Leo Tolstoy
"I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply." - Nathan Rothschild
"The Federal Reserve Act was the final act of the US government selling out to the banks- the true owners of the government. It was designed to centralize power in a few very hands. Their MO has been:
1) Flood the market with cheap low interest money
2) Get business and people into debt
3) Raise interest rates forcing small business/people to go bankrupt
4) Buy these assets and people for pennies on the dollar.
The mafia would be proud of their business model." - Unknown
"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson on approving the Federal Reserve in 1913
"The market stops panicking when central bankers do." - Unknown
"And Jesus went into the temple of God, and cast out all them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves, And said unto them, It is written, My house shall be called the house of prayer; but ye have made it a den of thieves." - Matthew 21:12-13 KJV
b. Reserve Currency
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exorbitant privilege - "the benefits the United States has due to its own currency (the US dollar) being the international reserve currency." - Wikipedia
"[Bretton Woods] is an asymmetric financial system [where foreigners] see themselves supporting American living standards and subsidizing American multinationals". - Valéry Giscard d'Estaing, French Minister of Finance
"It costs only a few cents for the Bureau of Engraving and Printing to produce a $100 bill, but other countries had to pony up $100 of actual goods in order to obtain one." - Barry Eichengreen
"In February 1965, President Charles de Gaulle announced his intention to exchange its U.S. dollar reserves for gold at the official exchange rate. He sent the French Navy across the Atlantic to pick up the French reserve of gold and was followed by several countries.As it resulted in considerably reducing U.S. gold stock and U.S. economic influence, it led U.S. President Richard Nixon to end the convertibility of the dollar to gold on August 15, 1971 (the "Nixon Shock"). This was meant to be a temporary measure but the dollar became permanently a floating fiat money and in October 1976, the U.S. government officially changed the definition of the dollar; references to gold were removed from statutes." - Wikipedia
c. Money/Exeter’s Pyramid
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Money was invented to allow for the division of labor. It allowed people to specialize and trade their labor without needing to barter.
Issuer Acct Digital Physical
Central Bank CB Reserves CBDC Banknote/Coins
Commercial Bank Bank Deposit Bank DC's Banknote/Coins
Private Pmt Provider Stablecoin Prepaid Card
None n/a Bitcoin/Crypto Precious metals/Gold
"Exeter's inverted pyramid:
____Highest Layer of Abstraction____
NFTs/Tokens - .3t - Depend on Bitcoin/CBDC's
Bitcoin/CBDC's - 2t - Outside the system, but on/offramps controlled by the system
____Highest Counterparty Risk____
Derivatives, Unfunded Government Liabilities - 2-4 quadrillion / 1,000t - All paper markets
Commercial Real Estate, Corporate Bonds, Muni Bonds - 300t - Can't pay debt
Equities and Bank Deposits - 200t - Banks/pension fund assets
Government Bonds - 120t - Healthcare, supply chains, social security collapse
Bank Deposits - 50t
Paper Money - 40t - (up to infinity under hyperinflation)
Commodities - Non-Money Commodities
Land - Debt-free farmland, self-sufficient homesteads
____Zero Counterparty Risk/Zero Abstraction____
Gold - 2.5b oz - 13.8t - separate from the pyramid (no counterparty risk)
Silver - 4b oz 1.3t - bottom of pyramid (money of the people)" - made from a combination of the pyramids from Parallel Mike and Rafi Farber with some modifications by the Author
d. Cash
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"In God we trust. All others pay cash." - Unknown
"We are currently experiencing unforeseen difficulties, but are diligently working to resolve this as soon as possible. Our slot machines are available to play with cash. For MGM Rewards members, please insert your card (light around card must be green). Slot play will be recorded and credited to your account when our systems are back online. Freeplay and slot dollar redemption are not available at this time. When play is completed, press the cashout button, and the amount will be paid in cash in person at the machine by a slot attendant. Thank you for your patience." - MGM Resorts after a cyberattack crippled their reservation systems
"Warren Buffett thinks of cash as a call option with no expiration date, an option on every asset class, with no strike price." - Unknown
"Paper money is just an option with slower theta burn and no precise expiration date, change my mind.." - Unknown
"First, cash makes managing your money clear and simple. Keeping a firm grasp on your spending with notes and coins is easier. You only have to open your wallet to see if you can afford additional expenses. It is with good reason that parents usually give children their pocket money in cash. By contrast, when you hold a plastic card up to a payment terminal, all you see is an amount that will be debited from your account at some point in the future. Second, thanks to its simplicity of use, cash allows everyone to participate in the economy in social life. You do not need an account or a mobile phone to pay with coins and banknotes, nor do you need an affinity with digital technology. Third, when paying by cash, you do not need to provide personal details such as your name or card number. With electronic payments, however, information about the persons making the payment and their payment behaviour is stored." - Unknown
"I had to go get cash out of the bank for a atv . 2,500 . There she is counting 20 100 dollar bills. WTF Why do we not have a 500 or a 1000 dollar bills ? Oh yeah the usual large bills are only used by criminals." - Unknown
"1) The money isn’t really yours. You’re just another unsecured creditor if the bank goes bust.
2) The money isn’t actually there. It’s been lent out to borrowers who are illiquid or insolvent.
3) The money isn’t really money. It’s credit created out of thin air.
The point is that cash is freedom. And when the State limits the utility of cash—physical dollars that don’t leave an electronic trail—they are limiting your personal freedom to act and compromising your privacy. Governments are naturally opposed to personal freedom and personal privacy because those things limit their control, and governments are all about control." - Nick Giambruno on money in bank accounts.
"Epstein sold and r*ped children and never lost his access to banks. Know who did? Truck drivers and the mypillow guy. That's who. You better wake up fast, folks." - Unknown
"Visa offers restaurants $10,000... if they stop accepting cash." - Unknown
"Cash is particularly crisis proof. You can still pay with banknotes even when a card terminal has stopped working, when your mobile phone has no reception or when there is no electricity. Cash therefore serves as an important back-up in the event of local – or even widespread – interruptions to card or app payments." - Unknown
"If some people want to rely solely on digital financial transactions, let them. But don't take away cash for the rest of us. My $50 note can't be hacked. If I'm robbed, I lose $50, not my entire life savings. If my $50 note is accidentally immersed in water, it still works. My $50 note doesn't need batteries, it can't be
'out of range' and it won't break if it's dropped. If the system is down, I can still use my note. My $50 note can be put into a charity box or given to a homeless person. Sure l use a card sometimes for large purchases, but for everything else please leave me the option of cash. It simplifies life." - senatormalcolmroberts
"A great idea for Australians to take on the French way to deal with keeping Cash Alive! I've been in France for three months now. Their approach to this is simply fantastic. I'd like to share a bit about it. A very well known supermarket here decided to go cashless. A group of 50 people got together and agreed that they would all do a big shop on the same day. Piling their trolleys to the brim and each person getting to the checkout - the human check out, not the machines - and having everything scanned before bringing cash out. The staff were absolutely overrun. There management in a complete tizz, everyone repeatedly, calmly and in a very organised and polite fashion acting as if they knew nothing. No edges, no rudeness, no humiliation. The supermarket reinstated cash. Petrol stations: filling up with fuel then only having cash to pay. Restaurants: groups of friends going out for dinner and nobody taking phones or credit cards, only cash ... They are doing it in every single area of France. Simply refusing to be part of it. The reason it works is because it's organised in large groups. One person here and another there doesn't work. It needs to be really carefully constructed." - Unknown
e. Fiat/Inflation/Hyperinflation
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"Understand three fundamental truths about modern banking.
1) The money isn't yours.
2) The money isn't actually there.
3) The money isn't really money." - Unknown
fi·at - noun - a formal authorization or proposition; a decree. From Latin, ‘let it be done.’
"Fiat is fraud when you can print money to lend out at interest." - Unknown
"Fiat money is 'inconvertible paper money made legal tender by a government decree.'" - Unknown
"You cannot apply classical economics to a printed fiat economy. Bottom line is intrest rates can be whatever 'they' want them to be via bond purchases on an endless central bank spreadsheet. The fed literally could say I'm gonna buy up the entire u.s. debt with printed capital and keep it on the spreadsheet marked to zero. There isn't a hole, social security, pensions, bank bailouts, car bailouts, state gov bailouts, that can't be filled with printed money. This will go on ad nauseum, and will never collapse on itself. Only way out is the one you can provide. The printing will continue until morale improves in... The age of madness" - Unknown
“I will use the printing press like a machine gun to destroy the middle class.” - Vladimir Lenin
"We will pay the price but will not count the cost." - Unknown
"Between the millstones of taxation and inflation, will we grind some folks." - Stalin
"The Fed has always targetted inflation at 2%. Why 2%? 2% is the number that the fed can steal from your bank account without people noticing." - Chris Irons, Quoth the Raven Podcast
"Keynesian economics is really an exercise in how to steal for the longest possible time without anyone noticing." - Rafi Farber, Keynesian Economics is Corollary to Austrian Economics
"Austrian economics is the branch of economics concerned with the preservation of wealth and prosperity of a nation." - Unknown, Austrian Economics is Corollary to Keynesian Economics
"By this means the government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." ― John Maynard Keynes, The Economic Consequences of the Peace, on the inflation tax
"We can guarantee cash settlements as far out as the eye can see. But we cannot guarantee their purchasing power." - Alan Greenspan, former Federal Reserve chairman
"We are devaluing American money so rapidly that in America today, you can't even bribe Democrat senators with cash alone. You need to bring gold bars to get the job done, just so the bribes hold value." - Matt Gaetz
"Live within your means until THEY raise your property taxes, until insurance companies jack their rates, until food becomes a massive expense, until fuel and electricity double in price. Did you ever consider people WERE living within their means until external forces they had no control over put them in debt just to survive?" - Unknown
"Correct. This is the obvious next step. I'm mid 30s, own my home and cars free and clear, and have absolutely no debt otherwise. I'm not naive. I don't actually... own any of it with a tyrannical government. My property taxes are already approaching 10k a year. What happens if they decide to make that 20k? What happens if renewing my car registration goes to 1500 a year? Or yeah, car insurance triples? This will happen.. and when it does nobody will be able to live within their means. The entire goal of the elites is to have us all paying rent to Blackrock. Make no doubt about it." - Unknown
"Sub-prime is contained: 2007, Inflation is contained: 2023" - Unknown
"I bought a Sausage McMuffin combo the other day for $8.37. It cost $4.78 two years ago. Go figure." - Unknown
"Bidenomics is working. Under trump, my gas tank only held $30. Now, it holds $90" - Unknown
"I hate shrinkflation....now you buy a box of cereal and you get 3 bowls out of it....in a huge empty box..they always have the disclaimer..the product might have settled in shipment....yeah it did..to the bottom third of the box" - Unknown
"Inflation is a stealth tax on those without assets...like most of the middle class and poor. Vote harder. What is the gov to do? You have a nation of voters (many on the right and EVERYONE on the left) who are abject lazy thieves. Any politician who tries to get elected with honest money or budgets would get laughed off stage. You want 'FREEE!!!'.....you got free. It's called the inflation tax. Pay it." - Unknown
"Austerity has never been done in history when the government owns a money printing press." - Unknown
"11. What if the Bank runs out of money? Some players think the Bank is bankrupt if it runs out of money. The Bank never goes bankrupt. To continue playing, use slips of paper to keep track of each player's banking transactions - until the Bank has enough paper money to operate again. The bankers may also issue "new" money on slips of ordinary paper." - Unknown, If you don't understand how it works, start with Rule 11 of the Monopoly Game
"Date: German Marks needed to buy one ounce of gold
Jan 1919 170 HUNDREDS
Sept 1919 499
Jan 1920 1,340 THOUSANDS
Sept 1920 1,201
Jan 1921 1,349
Sept 1921 2,175
Jan 1922 3,976
Sept 1922 30,381
Jan 1923 372 477
Sept 1923 269,439,000 MILLIONS
Oct 2, 1923 6,631,749,000 BILLIONS
Oct 9, 1923 24,868,950,000
Oct 16, 1923 84,969,072,000
Oct 23, 1923 1,160,552,882,000 TRILLIONS
Oct 30, 1923 1,347,070,000,000
Nov 5, 1923 8,700,000.000,000
Nov 30, 1923 87,000,000,000,000
The German hyperinflation occurred over a period of several years" - Unknown
"In the last Great Depression there were plenty of things to buy, but nobody had any money. In the next Great Depression, everyone will have plenty of money, but it won't buy anything." - Unknown
"That is what I have been trading my dollars for... tractor, tools, welder, things I can make and sell with and do services in trade. It is kind of a hedge. Plus, I can always sell the stuff for more than I paid for it just based on inflation." - Unknown
"After beans, bullets and bandaids, this is solid strategy right here... ^^^^^^" - Unknown
"Everything is being fulfilled right on schedule which includes a days wages for a days food by the midst of this decade: 'And when he opened the third seal, I heard the third living creature saying, Come. And I saw, and behold, a black horse; and he that sat thereon had a balance in his hand. And I heard as it were a voice in the midst of the four living creatures saying, A measure of wheat for a shilling, and three measures of barley for a shilling; and the oil and the wine hurt thou not.' - Revelation 6:5-6" - Unknown
"Money extracted from nothing cannot be lost, it just returns to it's origins. What matters at the end of the day is generally what physical improvements money achieves, script or gold, any form of money can do good on the ground or simply sponsor more looting operations. In other words, no money has intrinsic value, it has to earn its value in real achievements within the physical economy. Even gold can be wasted on paying debts which achieved little improvement to the physical situation within the economy. The root of the failure mode is not the form of money, but having too many rent-seekers and not enough production improvements within the economy as a whole. The parasites have grown more influential than the host, due to being so successful at looting." - Unknown
"To live in a free, noninflationary society, you must do the following:
1) End central banking;
2) End debt-based currencies;
3) End fractional reserve lending;
4) End direct taxation, that is, taxes paid directly to the government: income, property, estate, wealth, and inflation.
Do these things, and you will be free, happy, and prosperous." - Unknown
f. Debt/Default
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"The important question isn't 'is the US debt sustainable?' It's 'why has the debt been sustainable for so long?' Two main reasons:
1) The currency is imposed upon the people by a legalized monopoly.
2) Rules & regulations ensure the holding of government debt as the safest & most liquid of all reserve assets.
The government does what every monopoly excels at, which is buy up potential competitors, suppress competition, pursue regulatory capture via lobbying, and spend freely on deceptive PR." - Unknown
”It is NOT that there is debt. Debt can be good or bad.
- Good debt borrows now to invest as capital and generate greater profits in the future.
- Bad debt borrows to maintain/increase wasteful spending of ineffective govt programs. For example, social programs that generate only more social programs (and nothing of productive value)” - Unknown
“It is a sh*t storm out here. You have no idea the kind of crap people are pulling, and everyone’s walking around like they’re in a goddamn Enya video.” - Mark Baum, on the 2008 financial collapse in the movie The Big Short
"There is surely something odd about the world's greatest power being the world's greatest debtor." - Larry Summers, US Treasury Secretary
"Global Debt Projections
1971 - 4 trillion
2000 - 100 trillion - 25x in 30 years
2021 - 300 trillion - 75x in 50 years
2030 - 3 quadrillion? - 750x in 60 years?" - Unknown
de·fault - noun - failure to fulfill an obligation, especially to repay a loan or appear in a court of law. From Latin fallere meaning to ‘disappoint' or 'deceive’.
"Our liquidity position is strong, we are adequately capitalized." - Alan Schwartz, Bear Stearns, March 2008 before they became insolvent and were taken over by Bank of America.
”What have I told you since the first day you stepped in my office? Be first, be smarter, or cheat. And I don’t cheat.” - Margin Call
"They [Banks] never go bankrupt. In a bankruptcy the books are opened in court. That never happens anymore. The books of anything big are just too dirty for that kind of exposure. Lehman no BK. Bear Sterns no BK. MFGlobal no BK. Etc." - Unknown
"JP morgan senior partner in madoff. Imagine how corrupt you have to be to be willing to launder a ponzi scheme? They saw all the money going back and forth yet did nothing to stop it." - Catherine Austin Fitts
"I lived through '08 as the tenant of a master manipulator. The owner was a mortgage lender. I tried to buy the place on the cheap, but between the bank accepting virtually any stall tactic and the owner using every stall tactic, the owner stopped making payments, and never made a payment for 5 years while the bank pretended to care. It was like a cat and mouse game only the cat had no interest in actually ever catching the mouse. The bank would file a notice of foreclosure and the owner would list the property for sale. Foreclosure sale immediately postponed. When it didn't sell, bank filed another notice of foreclosure and the owner called me and asked me to make a lowball offer. Foreclosure halted. Appraisal generated and it actually came in too close to my offer, so the bank waited 6 months and then needed another one because the old one was stale. Then they just claimed to have lost the next two appraisals. This went on for 5 years until the property bought at the peak in 2006 for $860K with payments stopped in 2007 finally resold in 2012 in a swarm of buyers for $1.1M. By then the mortgage had been 'sold' by the bank to the Fed at full value and the fed got every penny plus late fees and interest. The bank had gotten all its money back from the fed, and took a small loss from the payments missed. So those of you salivating at the enormous crash to come should know better than to think you live in a capitalist society. There isn't going to be a crash for the same reason there wasn't much of one in 2008: the banks can't afford it. Stop thinking what will happen is what you learned in elementary school." - Unknown
"The year of 'Shmita' or 'Shemitah' (meaning: letting go), also called the sabbatical year, occurs every seventh of September or October. The story behind the Shemitah is that the 7th year is the year of resting and releasing. The year also stands for debt forgiveness to break debt cycles. Then immediately, it repeats the idea of Shabbat: Six days, you shall do your work, but on the seventh day, you shall cease labor. The implication is that just as there is a rhythm to the work week whereby activity needs to be punctuated by periods of rest, a parallel rhythm pertains over a seven-year cycle; we need periods of rest and renewal." - Unknown
"Imaginary money, Imaginary debt." - Unknown
"US government has the Ultra Black Gold Travel Rewards Card that never has to be paid so it never needs to cut spending. How many of you just pay the minimum on a credit card? Uncle Sam does. Wait until the US credit card starts seeing 28% interest rates. The introductory 0% rate is gone." - Unknown
"It takes 50 minutes to fill a stadium size pool if you double a drop of water every minute. The US National Debt doubles every 8 years..." - Unknown
"0% of $31 trillion was no big deal. 5% of $31 trillion on the other hand..." - Unknown
"The US government has defaulted at least 5 times:
1781 - Loans, Supply Certificates, Wage Certificates interest unpaid / French govt refused to roll loans
1790 - US Govt assumed and retired debts of colonies. Deferred interest until 1801.
1861 - Defaulted on US demand notes. Govt printed 'greenbacks' which sold at discount to gold
1933 - Overt default on gold bonds that were paid in paper instead
1968 - Refused to honor redemption of silver certificate paper dollars for physical silver
1971 - Refused to redeem dollars held by foreign govts for gold under Bretton Woods
1979 - Failed to send $122m in checks out on time (with no obligation to pay interest on late payment)" - Unknown
"The US has absolutely, indisputably defaulted before. This began in the wake of the American Revolution when the US defaulted on domestic loans. After the new constitution was in place in 1790, the federal government renegotiated past debt at less favorable terms for investors. That's a default. Then there was the Greenback default of 1862. The original greenbacks were $60 million in demand notes which were redeemable in specie. Less than five months later, in January of 1862, the US Treasury defaulted on these notes by failing to redeem them on demand. Perhaps the most egregious case was the Liberty Bond default of 1934. The US was contractually obligated to pay back its debts on these bonds in gold. Franklin Roosevelt decided to default on the whole of the domestically-held debt by refusing to redeem in gold to Americans and devaluing the dollar by 40 percent against foreign exchange. The US refused to make good on its end of these bond contracts. That was also a default. Then there was the short default of 1979. As Jason Zweig noted in 2011: In April and May 1979, amid computer malfunctions, heavy demand from small investors and in the wake of Congressional debate over raising the debt ceiling, the U.S. failed to make timely payments on some $122 million in Treasury bills. The Treasury characterized the problem as a delay rather than as a default. While the error affected only a fraction of 1% of the U.S. debt, short-term interest rates—then around 9%—jumped 0.6 percentage point and the U.S. was promptly sued by bondholders for breach of contract. So, the next Time Joe Biden or Janet Yellen go on television to insist the US has never defaulted, know that you are being lied to." - Unknown
"bank·rupt·cy - the state where a person or organization declared in law unable to pay outstanding debts. Bankruptcy originates from the Italian Banca Rotta or 'broken bench.' Bankers in the 16th century Italy would conduct their business from a bench or table. When they could no longer fulfil their obligations, their bench was smashed to signify that they were out of business." - GoldSwitzerland
"'How did you go bankrupt?' Bill asked. 'Two ways,' Mike said. 'Gradually and then suddenly.'" - Ernest Hemingway, The Sun Also Rises, 1926
"I don't always downgrade the US Credit Rating, but when I do, I do that on a Friday after market close." - Dos Equis Commercial Guy on the Moody's downgrade of the US Credit rating
bond - a certificate issued by a government or a public company promising to repay borrowed money at a fixed rate of interest at a specified time. From Old English beand meaning to 'bond', 'chain', or 'fetter'.
mort·gage - a legal agreement by which a bank or other creditor lends money at interest in exchange for taking the title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt. Mortgage originates from old French, literally meaning ‘dead pledge’, from mort (from Latin mortuus ‘dead’) and gage ‘pledge’.
"The rich ruleth over the poor, and the borrower is servant to the lender" - Proverbs 22:7 KJV
"Credit monitors had a specific pecking order that was the 'normal' course of defaults for American consumers:
1) Default on Store Branded Credit Cards.
2) Default on Major Credit Cards.
3) Default on Auto Loans.
4) Default on Mortgages.
Quite quickly the average consumer figured out that they could default on their mortgage and face none of the usual consequences (foreclosure, eviction), but they needed their most basic credit cards to purchase the items they needed every day." - Unknown
Combat Warfare Categories:
1) Minor civil disobedience and/or riots
2) Major civil disobedience, riots, and/or insurrection
3) Minor bombing and/or ground invasion
4) Major bombing and/or ground invasion
5) Nuclear destruction
Economic Warfare Categories:
1) Increased mortgage foreclosures, some strip-shop and mall closings, decreased spending overall
2) The above, plus tariff wars, stock and bond market crashes
3) The above, plus minor inability of governments to pay entitlements, significant inflation, credit collapse
4) The above, plus the end of the dollar as a reserve currency/end of the petrodollar, considerable inflation, short-term bank closures
5) The above, plus major inability of governments to pay entitlements, permanent closure of the majority of banks, currency collapse, confiscation of deposits, major internal capital controls
"Yields Rising. Because it hurts too much to say bond prices are crashing." - Unknown
"You can squeeze a water balloon seven ways from Sunday but eventually it pops out somewhere. They are running out of little tricks to pull out of their bag." - Rick Santelli on rising yields and yield curve control
"When the Fisher Effect knocks in and bonds are discounted due to future expected inflation due to printing, all SHTF." - Unknown. The Fisher effect is the tendency for nominal interest rates to change to follow the inflation rate. The real interest rate is independent of monetary measures (known as the Fisher hypothesis), therefore, the nominal interest rate will adjust to accommodate any changes in expected inflation.
"Time is cruel master. So is compound interest." - Lawrence Lepard
"If one thing resonates for me on why yields are grinding higher, it is a lack of faith in the government’s willingness to control and even pay debt." - Unknown
"Risk free rate. The whole of clown world is built on the assumption that these Treasury Bills of Exchange are risk free." - Unknown
"The only yield you better be concerned with right now is the bitter harvest that the destroyer is going to unleash in the end of days. SOUNDS OF THE DESTROYER. Only those who hold a certain credential/qualification will be removed from the earth before it arrives. To find out what that qualification/credential is and how to get it, I would suggest you read the link above. Quickly." - Unknown, on the next crash being Biblical
"Two Conditions Required for a Financial Bubble or Crisis:
1) The banks need to be heavily exposed to the asset. Banks are the lynchpin of the financial system, so for anything to create a bubble, it needs to hit the banks. And to hit the banks, they need to own a lot of it.
2) The asset has to be owned on a highly leveraged basis. Leverage is what creates forced sellers. It probably sounds trite, but you have to have a margin account to get a margin call. Forced sellers are the key and that is directly tied to owning an asset on a leveraged basis.
My view is that you need a ‘safe’ asset, that banks own a lot of, and that both banks and other investors own with significant amounts of leverage. Does any asset fit these criteria better than treasuries?" - Unknown
"This is what happens at the end of every Empire throughout history...the Treasury is looted." - Unknown
"There are those that have been robbed, and those that are going to get robbed." - Unknown
"Being a part of Gen X is like the scene from Andor where they are stuck in the slave camp. They tell you that you are a short timer only to realize that you will be moved to another slave camp when your time is up. The only way out is to die." - Unknown, on how Gen X is not going to get social security but be stuck paying for everything
"We boomers didn't get the $33 trillion. The politicians and their rich cronies did. But you are correct that the national debt they caused has doomed you to a future of economic devastation. Just like your politicians are doing A LOT WORSE to your children now. Many many times worse. So if we should have stopped them from doing it to our children, why aren't you stopping them from doing it to your children now?" - Unknown
"You can’t buy financial instruments to protect against risk in the financial system. You have to be outside of it." - Unknown