If Greece Fails

[suprised]

Whoa, let me get my mind around this first.

Did'nt the banks (Fed Res) start this mess over 100 years ago when they conviniced the US goverment that if they had $10 million in their bank, they could pretend it's $100 million and loan it to them?

 

[Gunner3456]

Whoa, let me get my mind around this first.

Did'nt the banks (Fed Res) start this mess over 100 years ago when they conviniced the US goverment that if they had $10 million in their bank, they could pretend it's $100 million and loan it to them?

Well, it's not quite that much but yes, it's called fractional reserve banking. To oversimplify, a bank can lend it's customers' deposits except for a reserve amount. That reserve amount varies with instructions from the Fed.

So let's say that the bank can lend 80% of its deposits. You have $1000 in your account and I go in and borrow $800 of it and that is deposited into my account. Now the bank has $1800 in deposits and can lend 80% of it, but so far it's only loaned $800 of it so it can make another loan.

 

[chemist]

It was not quite a hundred years ago that the United States lost control of her currency and thus her future.
Federal Reserve System - Wikipedia, the free encyclopedia
The Fed centenary will be precisely one year after the Mayan doomsday comes next year!

 

[Stomper]

If ya gotta go... GO BIG!!

 

[mjbskwim]

You have to love this part

According to the Board of Governors, the Federal Reserve is independent within government in that "its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government."

Yeah

 

[Grunwald]

Agreed. I refer to SS as ponzi because it's all been robbed from the trust fund and spent in the general budget. They should have been holding it for us and drawing interest on it.

I also consider the secretive printing of more money by the Fed, and their creation of "money" to loan to our government and to world banks to be a ponzi scheme.

I consider telling us that our debt is $15 tril when it's more like $100 tril a ponzi scheme.

I would not call fractional reserve banking a ponzi scheme. It does not meet the definition. It is actually a lot worse than a ponzi scheme. It is fraud on a grand scale. Not not grand.... national scale.

 

[Gunner3456]

I would not call fractional reserve banking a ponzi scheme. It does not meet the definition. It is actually a lot worse than a ponzi scheme. It is fraud on a grand scale. Not not grand.... national scale.

I don't believe I called fractional reserve banking a ponzi scheme, but I agree with you completely. I did call the fed's phony creation of new fiat money out of thin air a ponzi scheme.

 

[Grunwald]

I was just catching up on watching a webcast of a financial show I like and the host was talking about the dollar getting stronger and why. First he talked about Europe and how the rates are creeping up on Italy, Spain and even France.
Then he skipped over to Argentina. I know that we get links to the Surviving Argentina blog and the guy who runs it just had an update how bad it is getting again.
Well, according to what I just heard on the webcast, Argentina is running a 25% inflation. (it's only been 13 years since they gone though the hyperinflation cycle). The people are trying to get dollars (not gold or silver) to preserve their wealth, but the government is placing restrictions on that. So those who can are buying up dollar denominated bonds. There are also a lot of foreign companies out there that are issuing USD denominated bonds and it is one of the reasons why the USD has been so strong.

Myself, I find it amazing that these people have any faith in the USD. I guess all those decades of conditioning that the USD is the gold standard (no pun intended) of currencies is having an effect. They sure are going to get a rude awakening. ..... or maybe if their currency loses 80% of its value but the USD loses 40% they only notice that on a relative basis they have preserved a good chunk of what could have been lost.

 

[Gunner3456]

I think the dollar is just seen as the best of the bad. The Countries which use the Euro are in real trouble, and they can't just print more money. There are 17 ?? countries which use the Euro, and about ten ?? more in the Euro zone? I suppose they could print more money and hand it out on a pro-rata basis based on GDP or something, but that would be such an obvious thing which would crash the Euro. We do it in secret.

We also still have some kind of an economic engine where Spain, Portugal, Greece and Ireland don't. Even Britain which doesn't use the Euro is in real trouble.

Inflation is just another way of saying that the value of money decreased. We are sure seeing inflation at our house every time we go to the store.

Anyway, I'd rather have dollars than Euros. But, I'd rather have gold and silver and useful items than dollars.

 

[Grunwald]

I've heard this morning on Bloomberg radio that Germany just had a failed bond auction.
They were unable to sell about 35% of their new 10 year bonds.

 

[kenno]

But But Gietner SWORE under OATH before CONgress that this would never happen!

I recall an episode of Glenn Beck's show on CNN, where he explained this exact situation occuring, that's when Weiner had his Invetigation of Beck/Gold Sales and found nothing.
Now Weiner has his new job at CNN and Beck has his own Broadcast Empire and is moving to TX.
All in less than 3 years

 

[Gunner3456]

But But Gietner SWORE under OATH before CONgress that this would never happen!

I recall an episode of Glenn Beck's show on CNN, where he explained this exact situation occuring, that's when Weiner had his Invetigation of Beck/Gold Sales and found nothing.
Now Weiner has his new job at CNN and Beck has his own Broadcast Empire and is moving to TX.
All in less than 3 years

Beck is getting the heck out of Dodge. He believes a crash is coming (which qualifies him as a nutcase with the MSM) and he no longer wants to be in NYC. Gee, he's so paranoid he believes in owning gold and silver.

He'll get the last laugh.

So Germany's central bank had to buy about 1/3 of their bonds because they didn't sell on the open market. But, but, but, Germany is the financially strong one in the Eurozone.

Nothing to see here folks. Move along.

 

[Grunwald]

But But Gietner SWORE under OATH before CONgress that this would never happen!

I recall an episode of Glenn Beck's show on CNN, where he explained this exact situation occuring, that's when Weiner had his Invetigation of Beck/Gold Sales and found nothing.
Now Weiner has his new job at CNN and Beck has his own Broadcast Empire and is moving to TX.
All in less than 3 years

Weiner has a job at CNN??? That revolting piece of pig feces got a job in broadcasting??
I don't blame anyone for getting out of NYC. I've been offered jobs in NYC before and never even considered them.
I still remember going to NYC back in the 80s and being shocked at the amount of sales tax.

 

[kenno]

Maybe it was the Democrapic Gov. of NY who got the job,,,or both?

 

[Grunwald]

IT is a slow day in a little Greek Village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit.



On this particular day, a rich German tourist is driving through the village, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night. The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.



The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer.



The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel.



The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the tavern.



The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit.



The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note. The hotel proprietor then places the €100 note back on the counter so the rich traveler will not suspect anything.



At that moment the traveler comes down the stairs, picks up the €100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.



No one produced anything. No one earned anything. However, the whole village is now out of debt and looking to the future with a lot more optimism. And that, Ladies and Gentlemen, is how the bailout package works.

 

[A.I.P.]

I' have to steal this OP, to PAY SOME DEBTS!

 

[Blue Devil PA]

The scenario works up until those pesky peasants decide to save a little of that money in their "piggy bank" against hard times and bank defaults. Then someone is left standing up when the music stops.

 

[Grunwald]

News I've heard yesterday on Bloomberg radio Europe - the new Italian prime minister want a law that forces any transaction over 1,000 Euros to be done electronically.
In other words, no cash transactions over 1,000 Euros. The stated goal is to allow the government to capture taxes and prevent cheating.

For those of you who do not know the new Italian prime minister is an appointed technocrat that comes from the banking sector. He was not elected by the people.

 

[Gunner3456]

News I've heard yesterday on Bloomberg radio Europe - the new Italian prime minister want a law that forces any transaction over 1,000 Euros to be done electronically.
In other words, no cash transactions over 1,000 Euros. The stated goal is to allow the government to capture taxes and prevent cheating.

For those of you who do not know the new Italian prime minister is an appointed technocrat that comes from the banking sector. He was not elected by the people.

For at least 40 years we've had that requirement that any cash transaction of $10k or more must be reported to the IRS. That's true at the bank or if you buy PM's...

It wouldn't take much for them to lower that to $1k here.

 

[Grunwald]

For at least 40 years we've had that requirement that any cash transaction of $10k or more must be reported to the IRS. That's true at the bank or if you buy PM's...

It wouldn't take much for them to lower that to $1k here.

There is a big difference between requiring reporting and required method of payment..... at least to me there is.

I wonder how much the fact that if you do it via electronic means that someone gets a transaction fee, which does not exist for cash transactions.