(FinanceMyMoney) – Controlling the wealth of America – top 1 percent control 83 percent of U.S. stocks. As a share of personal income mortgage debt ate up 19 percent in 1949. In 2003 it went up to 85 percent. 80 percent of Americans 65 years and older depend on Social Security for half of their income – Read More Here
(Bloomberg) – Romanian Recession Deepens on Cuts, BOA Merrill Says – Read More Here
(247WallSt) – American Credit Scores Crash To New Lows – Read More Here
REPOST – (CNNMoney) – Central banks start to abandon the U.S. dollar – Read More Here
(PaulWatson) – American Idolatry Intensifies as Nation Sinks in to Depression
Programmed zombies get hysterical about basketball while their future is being destroyed Read More Here
(ZeroHedge) – Berlin Pushing For European Bankruptcy Framework With Provision For State Sovereignty Give Up
The big news out of Europe this morning, and the reason for the drag on the euro is an article in Der Spiegel, “Merkel’s rules for bankruptcy” according to which Germany is now actively (and very secretly) pushing for a plan outlining a set of insolvency rules, which would require that private investors bear a portion of the rescue burden, and much more importantly, would see at least a partial give up in state sovereignty, where a new insolvency trustee (the “Berlin Club”, which we fail to see at least for now, how it differs from the Paris Club) would take implicit control over and override a default nation’s treasury, in essence pushing the bankrupt country into a form of Feudal vassal state-cum-reparations subservience. Welcome to financial warfare in the post-globalization period. Read More Here
(InfoClearingHouse) – Fix the Economy? We Have Know-how – Mike Whitney
There are remedies for recession, and the remedies are well known. But fixing the economy requires special medicine, fiscal stimulus, and if the patient does not take the medicine, he will not improve. It’s not enough to have the medicine sitting on one’s nightstand. It must be ingested before recovery can begin. Read More Here
(KeeneSentinel) – More Poverty By Any Measure
More than 15 million Americans are unemployed, homelessness has increased by 50 percent in some cities, and 38 million people are receiving food stamps, more than at any time in the program’s almost 50-year history. Evidence of rising economic hardship is ample. There’s one commonly used standard for measuring it: the U.S. Census Bureau’s poverty rate. It guides much of federal and state spending aimed at helping those unable to make a decent living. Read More Here
(FirstPost) – The big crash – America plunges into Depression – Read More here
(Telegraph) – EU to spend £1bn on pensions for retired eurocrats in 2010
The European Union will this year spend almost £1 billion on pensions for officials, giving the average retired eurocrat an income of almost £60,000, according to research carried out by the Daily Telegraph. Read More Here
(MailOnline) – Blair African charity run by banker linked to US toxic loan fraud – Read More Here
(NYTimes) – Crisis Awaits World’s Banks as Trillions Come Due
The sovereign debt crisis would seem to create worry enough for European banks, but there is another gathering threat that has not garnered as much notice: the trillions of dollars in short-term borrowing that institutions around the world must repay or roll over in the next two years. Read More Here
(CounterPunch) – The Worst of Times, the Best of Times
It’s the worst of times. America is plunging back into Depression. Only one out of every two Americans of working age has a job. Forty years ago that would have been okay. Dad went to the factory. Mom stayed at home to mind the kids. These days, just to keep the show on the road, mom and pop both work and the kids get daycare. Read More Here
(Gaurdian) – Tighter banking rules will drain £1tn from financial system, study shows
Banks are drawing on research conducted by PricewaterhouseCoopers which shows two percentage points would be sliced off economic growth Read More Here
(Telegraph) – Secret gold swap has spooked the market
IT takes a lot to spook the solid old gold market. But when it emerged last week that one or more banks had lent 380 tonnes of gold to the Bank of International Settlements in return for foreign currencies, there was widespread surprise and confusion Read More Here
(WashingtonPost) – Obama’s debt commission warns of fiscal ‘cancer’
The co-chairmen of President Obama’s debt and deficit commission offered an ominous assessment of the nation’s fiscal future here Sunday, calling current budgetary trends a cancer “that will destroy the country from within” unless checked by tough action in Washington. Read More Here
(AFP) – More and more Americans preparing for social unrest – Read More Here
(RawStory) – Sen. Kyl: $678-billion tax break for rich should not be offset
Sen. Jon Kyl, Republican of Arizona, believes that any extension to unemployment benefits “ought to be paid for.” But when it comes to the $678-billion cost of extending the Bush-era tax cuts for the wealthy, the senator says no offsetting is necessary. Read More Here
(KurtNimmo) – Video: Dollar Devaluation and Destruction of America Pick Up Steam
Back in January Lindsey Williams’ insider sources told him the dollar will be devalued within a year. In response, oil and food prices will rise significantly and the elite and banksters will move assets into gold and silver.
On Friday Fortune reported that central banks are now abandoning the dollar as the world’s reserve currency. Morgan Stanley says the dollar is rapidly losing its status. “We already knew that central banks have preferred gold to dollars,” writes Fortune, but it now “seems that those central banks prefer almost anything to dollars.”
Both the United Nations and the IMF urge dumping the dollar as the world’s reserve currency. Last year, both China and Russia questioned why the dollar should hold this status.
The dollar is unsafe because of the U.S. national debt. Over the last few years bankster grocery clerks in Congress and the White House have managed run up an astronomical debt and this has destroyed the dollar. As Fortune notes, two weeks ago America’s debt went up to $166 billion in a single day, a single day run-up greater than the entire U.S. annual deficit in 2007.
Fortune, of course, blames the American people for all of this, not the banksters and their buddies in the district of criminals. “Americans, the world’s consumers, continue much of the behavior that helped the U.S savings rate drop so low,” writes Heidi N. Moore.
Savings? Since the creation of the Federal Reserve in 1913, the dollar has lost 96% of its purchasing power. In other words, $100 today buys only 4% of the amount of good or services that it would have in 1913. On January 1, 1914, the Consumer Price Index was 10.0. The CPI was 30.9 in 1964 and last year it was 211.1.
“This means that prices have risen 683% since 1964. The only problem is that your wages have not risen at the same rate, even using the government manipulated CPI. Using a true CPI figure, average weekly earnings are 64% below what they were in 1964. This explains why a family of five could live well with one parent working in 1964, but even with both parents working and using debt in prodigious amounts, the average family does not live as well today,” writes Jim Quinn.
Dollar devaluation is directly related to the size of the national debt. Currency loses it value when government is unable to pay off its debt. The amount of debt owed by the U.S. government to the banksters is unpayable. If all money owned by all American banks, businesses and individuals was rounded up and sent to the government, there would not be enough to pay off the national debt. It is mathematically impossible to pay it off.
The government tells us the national debt is somewhere around $12.8 trillion. “As shocking as that massive number is, however, it is just a fantasy — a tiny fraction of the gargantuan amount our government really owes,” writes Lorimer Wilson. “In addition to that official $12.8 trillion national debt, Washington has written $108 trillion in off-budget, unfunded IOUs on Social Security, Medicare, Medicaid, its prescription drug program, its veterans benefits programs and its Federal pension programs that must also be paid.”
Dollar devaluation is a natural response — in an unnatural fiat money system — to government debt.
Take the case of Argentina. In 2001, the Argentine peso was pegged to the U.S. dollar. Argentina, however, was unable to pay its debt in early 2002 and the peso was devalued. The result was rampant unemployment and poverty. The regime of Domingo Cavallo imposed austerity on the people (as the IMF insisted it do) and this resulted in a general strike and a state of siege against the people by the government.
In February the credit ratings agency Moody’s Investor Service warned that the U.S. is at risk of losing its AAA credit rating. “The US government may be forced to devalue the dollar if … investment rating agencies (Fitch, Moody’s, Standard & Poor’s) down-rate the value of US Treasury bonds as they should,” writes author Bill Sardi. “Government cannot meet all its obligations and promises by raising taxes on the wealthy. Its only option now is to officially devalue the dollar, probably by 30%.”
In 2008, as the engineered global financial crisis was beginning to pick up steam, trend forecaster Gerald Celente said that the dollar would eventually be devalued by as much as 90 per cent. Celente’s track record is impeccable. He successfully predicted the 1997 Asian Currency Crisis and the subprime mortgage collapse. “The consequence of what we have seen unfold this year would lead to a lowering in living standards,” notes Celente’s blog, Trends & Forecasts.
None of this is a mistake. The euro is following the dollar down the tubes. The IMF and the United Nations suggest replacing these currencies with special drawing rights (SDRs), an international reserve asset that is used as a unit of payment on IMF loans and is made up of a basket of currencies. “A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency,” a United Nations report states.
During the G20 confab in 2009 plans were announced for implementing the creation of a new global currency. “There is now a world currency in waiting,” a communiqué released by the G20 stated. “The creation of a Financial Stability Board looks like the first step towards a global financial regulator” and thus a world bank as a component of one-world government.
In 2008 Obama’s Treasury Secretary Timothy Geithner said after attending a Bilderberg meeting that the Federal Reserve should play a “central role” in a new global banking regulatory framework. The banksters are diligently putting all their pieces into place.
“Ultimately, what this implies is that the future of the global political economy is one of increasing moves toward a global system of governance, or a world government, with a world central bank and global currency,” writes Andrew Gavin Marshall, “and that, concurrently, these developments are likely to materialize in the face of and as a result of a decline in democracy around the world, and thus, a rise in authoritarianism. What we are witnessing is the creation of a New World Order, composed of a totalitarian global government structure.”
Marshall notes that the very concept of a global currency and global central bank is authoritarian and removes any vestiges of oversight and accountability away from the people toward a small, increasingly interconnected group of international elites.
Marshall cites Carroll Quigley: “[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.”
In order for this long sought after agenda to be successful America and its currency must be destroyed. As noted by Fortune, central banks around the world are now picking up the pace in the abandonment of the U.S. dollar as the world’s reserve currency. It is part of the plan and so is the destruction of America’s middle class now underway.