The Rape of the West

The Rape of the West

RapeWest

I wanted to find a less ugly title for this article, but I couldn’t find one that still conveyed the depth of the crimes that are under way. So, apologies where they are due.

In this post, I’m going to give you an overview of what is going on and an outline of how the schemes work. I am not going to “prove” everything I write with citations and math. That’s an important thing to do, but today I’ll pass. If you doubt anything I write here, do your own research: Find the facts, question them, compare them, and forge your own opinions.

What’s Happening

Right now, people who can fairly be called the “ruling elite” are bleeding the West dry, and many of them are fully aware of what they’re doing. Others are simply “doing what works” and hiding behind slogans like “it’s all legal” that help them bypass morality.

These people are doing this rather urgently at the moment, because the financial system is poised for a collapse. The system has been propped up with many trillions of dollars, but the debts within it will never be repaid. Once the reality of that can no longer be evaded, the hypnotic confidence people have in the system will break.

At this moment (June 2016), Europe and Japan are closer to the precipice than North America. That means that large capital flows are coming into the US and Canada. That drives up the prices of property, stocks, bonds, and other things. At some point, however, even “the last to crash” will indeed fail. And at that point, fear will spike to astonishing levels and a new game will have to be instituted. (See, please, The Breaking Dawn.)

The Debt Swindle

Imagine you had this deal:

  • You get a slice of every dollar created.
  • You get to set the key interest rates.
  • You are authorized to manipulate securities markets.
  • You get to lend out many, many multiples of the money you have.
  • You can do all of this with complete, government-enforced anonymity.

This is the position that central bankers occupy, and I am not embellishing. (Can you name the shareholders of the Federal Reserve Banks?)

Now ask yourself a question: What do you think these people are doing with this?

I’ll allow you to conduct your own thought experiments.

Also please understand that when debts are not repaid, reserves fall and many times that many dollars (which are based on reserves) vanish with them. Picture this as fractional reserve banking running in reverse. Fewer dollars will be chasing the same amount of goods.

Now, think of the 1930s and consider this crucial fact: Deflation transfers assets from borrowers to lenders.

If your income falls from $70,000 to $40,000, you’re not going to be hurt buying food – those prices will fall too – but your fixed mortgage will become unpayable. And when you fail to pay, the bank takes ownership of your house.

Now, please add this to the mix: The bank did not loan you the deposits of your friends and neighbors – the bank simply made up your mortgage loan by entering a number on a line. That mortgage you’re slaving to pay back was created from nothing, with a key stroke.

So, to sum this up (and yes, I am simplifying, which isn’t entirely fair), it costs the banks close to nothing to create loans, and when people can’t pay, the banks end up owning their houses (or factories or cars) outright.

Again, apply your own thoughts here.

The Next Level Down

The next level down from the central banks is occupied by the big corporations and institutions. These outfits operate through politics, rather than banking. To put it briefly, they purchase politicians, who write laws and regulations that secure monopoly positions for them. From those protected positions, they reap huge fortunes from the populace, who have no other options.

Think of Obamacare. Think of the university system. If you want medical treatment, you have to use the system; if you want a diploma (and you can’t be hired for most decent jobs without one), you have no options. You will pay these outfits whatever they ask, and you’ll jump through whatever hoops they tell you to jump through. All other choices are forbidden under force of law… laws that they purchased.

Look at the prices of medical care and higher education these days: They are bleeding you dry, precisely because you have nowhere else to go.

Pay attention this election cycle. How many billions of dollars will be raised for campaigns? These are simply payoffs; every major donor will expect favors for their donations. That’s the simple fact and all else is dreaming.

Bribery is legal these days, cloaked in regulation to cover its sin. The capital cities of the West are what P. J. O’Rourke rightly called “Parliaments of Whores.”

Again: Political donors are bribing politicians to gain monopoly positions. They are using those to bleed you dry. And so long as you keep obeying, they have absolutely no reason to change.

Mr. and Mrs. Average

At the present moment, Joe and Jane Average are keeping their heads down, making no waves (avoiding shame), and hoping to ride out the insanity. After all, they were taught that democracy is magic – a system that will always right itself, no matter what.

And so these basically decent people sit quietly, waiting for magic to appear, murmuring “democracy, democracy” as they are robbed day by day.

“Because… Terror!”

“Terror” is the greatest tool of compliance in modern times… and maybe ever. Westerners are glued to terror delivery systems (network television) day and night, soaking it all in and buying the same old political line: We must do more!

As I write this, the news has just hit that the monster who shot up a nightclub in Orlando was not only part of the American security complex, but had been interviewed by the FBI three times for suspected terrorist ties.

But that will hardly matter, because fear will fill the atmosphere and fear makes humans very, very stupid.

Terror keeps compliance at a peak. I am not being flamboyant when I say the system needs terrorist attacks to keep itself going. This is true all across the West.

Without fear-driven compliance, the system would crack. That’s simply the way things are. If Joe and Jane Average were confident and rational, they’d demand better for themselves and their children.

Your Choice

I’ve laid things out as best I can in brief. It’s now your job to check them and see if they’re true. And then it’s your job to start acting on your conclusions. I think I’ll write a bit about doing in the next few weeks, but that post will merely be my suggestions. You must decide to act – or to avoid acting – on your own. No one can act for you, and anyone who offers you an “easy path to action” is just another politician.

You alone must choose. You alone must face the consequences. There is no easy way.

* * * * *

If you’ve enjoyed Free-Man’s Perspective or A Lodging of Wayfaring Men, you’re going to love Paul Rosenberg’s new novel, The Breaking Dawn.

It begins with an attack that crashes the investment markets, brings down economic systems, and divides the world. One part is dominated by mass surveillance and massive data systems: clean cities and empty minds… where everything is assured and everything is ordered. The other part is abandoned, without services, with limited communications, and shoved 50 years behind the times… but where human minds are left to find their own bearings.

You may never look at life the same way again.

Get it now at Amazon ($18.95) or on Kindle: ($5.99)

TheBreakingDawn

* * * * *

Paul Rosenberg

[Editor’s Note: Paul Rosenberg is the outside-the-Matrix author of FreemansPerspective.com, a site dedicated to economic freedom, personal independence and privacy. He is also the author of The Great Calendar, a report that breaks down our complex world into an easy-to-understand model. Click here to get your free copy.]


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16 Comments
Iconoclast421
Iconoclast421
June 15, 2016 3:00 pm

Banks do not create mortgage debt out of thin air. For every buyer there is a seller. They loan the money to pay the seller for the house. It is the interest component of the mortgage that is “money created out of thin air”. And what happens when interest rates fall? Less money is created. This is somewhat deflationary, but I guess the proper term would be disinflationary.

Boat Guy
Boat Guy
June 15, 2016 3:10 pm

Sadly your article tells the tale of how men and women of honor and integrity were gradually seduced by corrupt olhagarchiy that only has one basic agenda . More for themselves and less for everybody else except those willing to enforce their bidding at a price . You will hear the excuse over and over ,”I’m just doing my job” sorry . Then off they will go with your freedom , property what ever never once considering the moral implications of their actions , Nuremberg anyone ? We all should be aware of what fractional banking has done to our country and its citizens just look around to those appearing unaffected . What you will find is entrenched government employee and a growing smaller number of private sector people still able to pay the freight “tax burden” the rest of the bill is borrowed against the future generation of which a great number are viewing what has been handed them with deep hatred and resolve ! Who could blame them.

General
General
June 15, 2016 3:33 pm

Actually, banks do create money out of thin air.

For the definition of real money, please see the Coinage Act of 1792 passed by George Washington. All children “should’ be taught this law in school along with the Bill of Rights and the Constitution.

VegasBob
VegasBob
June 15, 2016 5:46 pm

@General,

If we taught children about the Constitution, the Bill of Rights, honest money, personal responsibility, and personal finance, we would have far fewer unthinking sheep bleating out “baa, baa, baa” all day long while they are sheared by the political and corporate rackets (housing, medicine, education, etc.).

One good start might be to restore the punishment for counterfeiting that was specified in the Coinage Act of 1792. That punishment was the death penalty. That would quickly put a stop to the Keynesian madness that currently rules the financial world.

TJF
TJF
June 15, 2016 6:26 pm

Iconoclast, please do a little digging on how our monetary and banking systems work. The banks certainly do create the money they loan out out of thin air. It is a hard nut to grasp that the thing that most of us slave away in exchange for, some people can just create as much as they want with no labor or effort required.

David
David
June 15, 2016 6:27 pm

Central banks can create the fiat thing we call money, that is true.

However, a commercial bank, such as those who lend you the money for a mortgage, must fund every dollar it lends from equity, debt, or deposits, a form of debt, there is no ability to just create it. If it were, banks would all be infinitely profitable, they would never need bailouts as the money lost in a bad deal would not be owed back to a depositor or anyone else, and the competition to lend out this free money would drive rates to near zero at all times as microeconomics and common sense will tell you, not just now when the central banks and politicians are desperately trying to hide the fact that their past manipulations, theft, and mismanagement of our finances have nearly destroyed the ability of the private economy to carry the load of the parasites.

People misunderstand the mechanism that is simplified in description as bank lending increases the money supply as meaning that banks create money from nothing to lend.

Look at a bank balance sheet if you understand accounting and finance or walk through the operations and finances of a bank with someone who has been in banking and actually understands it.

Rob
Rob
June 15, 2016 7:42 pm

Sure David, we can believe you, who clearly knows exactly what you are talking about, or we could believe the Bank of England. Hard to say which I would trust more.

http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf

Rob
Rob
June 15, 2016 7:48 pm

As I point our in my book – There’s Ants in My House, the global banking cabal has raped and pillaged until the system of almost completely bankrupted and then they will walk away with all the worlds resources. No wait, I forgot. My book is about Ants that are in my house. Oh sorry, never mind.

rhs jr
rhs jr
June 15, 2016 10:13 pm

There are not enough people qualified to borrow the money to keep the system going and TPTB can’t lower the interest rate any more; the SHTF this year: Deflation and Depression.

David
David
June 15, 2016 11:51 pm

Read my penultimate paragraph and read the Bank of England article and you will get it. Again, how would a bank not have unlimited profits and how would they ever need a bail out if they could create free money for themselves. Increasing the money supply through fractional reserve lending is not creating free money to lend. I have been in banking in NYC for 30 years and every dollar I lend has to be funded from equity, debt, or deposits. People misunderstand what the term money creation means.

David
David
June 15, 2016 11:52 pm

Ask yourself why banks would ever pay for deposits, need a bailout, raise debt etc if they could just create money for themselcpves to lend out.

Bea Lever
Bea Lever
June 16, 2016 12:07 am

Nothing new in this article that the crew here have already discussed on a daily basis. They will continue to rape us unless we get the backbone to reverse the process. Stop spending your money in ways that enrich the elite.

NickelthroweR
NickelthroweR
June 16, 2016 1:44 am

Greetings,

This system will stay in place until a new system rises up to compete with it. A total collapse caused by an external force is quite rare so unless something horrible happens, alternative methods should appear as the the current mechanisms continue along their death-spiral. Home Schooling, bitcoin and a vibrant underground economy hint that the time is coming. After all, would a competing crypto-currency have been allowed to exist 15 years ago?

Greg in NC
Greg in NC
June 16, 2016 8:27 am

Hey David,

“every dollar I lend has to be funded from equity, debt, or deposits”

That doesn’t make sense to me. Fractional reserve lending means the member bank must have a fraction of the amount of the loan as reserves. Thus we have the required reserve ratio set by the Federal Reserve and changed as needed. Along with that they set the interest rate(fed funds rate) and open market operations to control the money supply.

If they do not create money out of thin air how could the federal reserve balance sheet(H.4.1) balloon from $930BB with $13BB in reserves on Jan 2008, https://www.federalreserve.gov/releases/h41/20080103/ to $4.5TT with $2.4TT in reserves on June 2016? https://www.federalreserve.gov/releases/h41/current/

Another question for you, if the Federal reserve states they have a 2% inflation target(inflation is the increase in money supply and or debt and not an increase in prices), which means the money supply will increase by 2% annually, where does the money come from?

David
David
June 16, 2016 1:49 pm

Good questions, there is a lot of confusing information and terminology out there and a lot of conspiracy theorizing. Even a lot of college economics professors do not really understand banking and investing and are so unable to teach it. I used to correct one of my professors on how options and accounting worked as I got into investing and looking at financials before college (loser).

Federal reserve can do whatever they want to print or create money and buy things. They create money, no question.

For a commercial bank to lend money it must fund that from equity or deposits. On a regular basis the team and I look at future growth plans and figure out when we will have to open a new branch to get the deposits to lend to support the growth or replace brokered CDs if they are getting expensive or too much of the mix. Running branches and gathering deposits, or getting brokered CDs or internet deposits, cost money, and branches are an especial pain with staffing, security, rent etc. if I could avoid this and just “create” money to lend I would do so and avoid all of this.

When I lend, I take your deposit and lend it to someone else, that creates a deposit for him but mostly for the people he pays, eg a builder who then pays for materials and labor, or a company that buys a plant or machines. That process continues limited by capital and reserve requirements of each bank in the chain, increasing the money supply/money floating around. That is what is meant by bank lending increasing the money supply. Note it has to start with me having the money to lend, a mix of equity and deposits, it does not mean that I just pretend to have money and it magically appears.

Look at a banks financial statement and you will see this in action and especially in the liabilities section (deposits etc.) equaling the assets (mostly loans).

The Fed is targeting price inflation, not money supply inflation. I believe money supply has been increasing well above the 2% mark for a while, depending on m0, m1, m2 etc. they move their levers of interest rates, supply, to try to keep price inflation in a range. Assuming of course one believes any of the statistics coming out of government on CPI, real GDP, or unemployment. I do not.