Abolishing Cash – New Age of Economic Totalitarianism

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Posted on 18th May 2015 by Administrator in Economy |Politics |Social Issues

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Euro Bank Notes

Europe is moving full speed ahead to eliminate all cash. Instead of reforming and tackling the economic problems, government always seeks to maintain the same course of thinking and that now leads us to the totalitarian approach coming from Brussels. To maintain the euro, they must maintain the banks. But the bank reserves are debts of all member states. As government becomes insolvent as in Greece, the banking system is undermined. The only way to prevent the banking collapse is to prevent people from withdrawing cash. Hence, we see this trend is surfacing in all the mainstream press to get the people ready for what is coming after 2015.75 – the elimination of cash. We are starting to even see this advocated in parts of Germany. We will not be able to buy or sell anything without government approval. That is where we are going and this may be the major event that erupts after 2015.75.

TigerVsheep

Sheep HerdThe bail-in that took place in Cyprus managed to get away without bloodshed. The people just took it. This has encouraged governments everywhere that they can now safely do the same thing and the people are like sheep – dumb and stupid. Just how much will society take before they say no?


WINNING

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Posted on 4th May 2015 by Administrator in Economy |Politics |Social Issues

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“You shouldn’t create a partnership with your drunken, shiftless brother-in-law.” — Charlie Munger, vice chairman of Berkshire Hathaway talking about Greece and the euro at the company’s annual shareholder celebration of crony capitalist insider billionaires winning.


GREXIT

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Posted on 20th February 2015 by Administrator in Economy |Politics |Social Issues

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GREXIT?

GREXIT ADVISORY SYSTEM

Via William Banzai


SALUTE TO EUROPEAN YOUTH

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Posted on 16th February 2015 by Administrator in Economy |Politics |Social Issues

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Hat tip flash


THE GREAT EURO POKER GAME

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Posted on 16th February 2015 by Administrator in Economy |Politics |Social Issues

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FOURTH TURNING – THE SHADOW OF CRISIS HAS NOT PASSED – PART FOUR

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Posted on 12th February 2015 by Administrator in Economy |Politics |Social Issues

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In Part One of this article I explained the model of generational theory as conveyed by Strauss and Howe in The Fourth Turning. In Part Two I provided an overwhelming avalanche of evidence this Crisis has only yet begun, with debt, civic decay and global disorder propelling the world towards the next more violent phase of this Crisis. In Part Three I addressed how the most likely clash on the horizon is between the government and the people. War on multiple fronts will thrust the world through the great gate of history towards an uncertain future.

War on Multiple Fronts

“The risk of catastrophe will be very high. The nation could erupt into insurrection or civil violence, crack up geographically, or succumb to authoritarian rule. If there is a war, it is likely to be one of maximum risk and effort – in other words, a total war. Every Fourth Turning has registered an upward ratchet in the technology of destruction, and in mankind’s willingness to use it.” – Strauss & Howe – The Fourth Turning

The drumbeats of war are pounding. Sanctions are implemented against any country that dares question American imperialism (Russia, Iran). Overthrow and ignominious imprisonment or death awaits any foreign leader questioning the petrodollar or standing in the way of America spreading democracy (Iraq, Libya, Syria, Ukraine, Egypt). The mega-media complex of six corporations peddle the government issued pabulum about ISIS being an existential threat to our freedoms; Russia being led by the new Hitler and poised to take over Europe; Syria gassing innocent women and children; and Iran only six months away from a nuclear bomb (they’ve been six months away for the last fourteen years). Hollywood does their part with patriotic drivel like American Sniper, designed to compel low IQ unemployed American youths to swell with pride and march down to enlistment centers, located in our plentiful urban ghettos.

The most disconcerting aspect of Fourth Turnings is they have always climaxed with total destructive all-out war. Not wars to enrich arms dealers like Iraq, Afghanistan, and Syria, but incomprehensibly violent, brutal, wars of annihilation. There are clear winners and losers at the conclusion of Fourth Turning wars. Leaders mobilize all forces, refuse to compromise, define their enemies in moral terms, demand sacrifice on the battlefield and home front, build the most destructive weapons imaginable, and employ those weapons to obtain victory at any cost.

It may seem inconceivable that war on such a scale will happen within the next ten years, but it was equally inconceivable in 1936 that 65 million people would die in the next ten years during World War II. We valued all the wrong things and made all the wrong choices leading up to this Crisis and during the early stages of this Crisis. The accumulation of unmet obligations, unpaid bills, un-kept promises and unresolved issues will provide the fuel for an upheaval that will shake our society to its core and transforms the country’s direction for the next sixty years. The outcome of the conflict could be tragedy or triumph. Our choices will make a difference.

There will be war on many fronts, and they have already begun. The culmination will likely be World War III, with the outcome highly uncertain and potentially disastrous.

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FOURTH TURNING – THE SHADOW OF CRISIS HAS NOT PASSED – PART TWO

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Posted on 10th February 2015 by Administrator in Economy |Politics |Social Issues

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In Part One of this article I laid the groundwork of the Fourth Turning generational theory. I refuted President Obama’s claim that the shadow of crisis has passed. The shadow grows ever larger and will engulf the world in darkness in the coming years. The Crisis will be fueled by the worsening debt, civic decay and global disorder. I will address these issues in this article.

Debt, Civic Decay & Global Disorder

The core elements propelling this Crisis – debt, civic decay, and global disorder – were obvious over a decade before the financial meltdown catalyst sparked this ongoing two decade long Crisis. With the following issues unresolved, the shadow of this crisis has only grown larger and more ominous:

Debt

  • The national debt has risen by $7 trillion (64%) to $18.1 trillion since 2009 and continues to accelerate by $2.3 billion per day, on track to surpass $20 trillion before Obama leaves office and $25 trillion by 2019.

  • The national debt as a percentage of GDP is currently 103% (it would be 106% if the BEA hadn’t decided to positively “adjust” GDP up by $500 billion last year). It is on course to reach 120% by 2019. Rogoff and Reinhart have documented the fact countries that surpass 90% experience economic turmoil, decline, and ultimately currency collapse and debt default.
  • Despite the housing collapse and hundreds of billions in mortgage, credit card, auto, and corporate debt being written off, dumped on the backs of taxpayers and hidden on the Federal Reserve balance sheet, total credit market debt has reached a new high of $58 trillion.

  • Harvard professor Laurence Kotlikoff has been a lone voice telling the truth about the true level of unfunded promises hidden in the CBO numbers. The unfunded social welfare liabilities in excess of $200 trillion for Social Security, Medicare, Medicaid, and Obamacare are nothing but a massive future tax increase on younger and unborn generations. Kotlikoff explains what would be required to pay these obligations:

To honor these obligations we could (a) raise all federal taxes, immediately and permanently, by 57%, (b) cut all federal spending, apart from interest on the debt, by 37%, immediately and permanently, or (c) do some combination of (a) and (b).”

The level of taxation and/or Federal Reserve created inflation necessary to honor these politician promises is too large to be considered feasible. Therefore, these promises, made to get corrupt political hacks elected to public office, will be defaulted upon.

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CASCADE FAILURE

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Posted on 3rd February 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Karl Denninger

 

If True, Then…

Something to ponder here….

George Osborne has warned that the standoff between Greece and its international creditors could derail Britain’s recovery, describing the deadlock as the biggest threat to the global economy.

The Chancellor urged Greece and the rest of the eurozone to act “responsibly” as the newly-elected goverment seeks to reduce the country’s debt pile and renegotiate its €240bn (£180bn) bailout agreement.

Think about that folks.

Greece is a tiny little nation. It has roughly $240 billion in GDP; a minuscule ~0.4% of the world’s economic output.

So how does this little nation become the greatest threat to the world economic outlook?

There’s only one way this can possibly be true: The rest of the world, specifically, the rest of the European Union, must have levered themselves at some obscene multiple (like 100:1 or more) such that if those bets go bad they’re unable to be covered and the creditor is not part of the EU or the creditor’s funds were fictitious.

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Alexis Tsipras’ Open letter to the German readers

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Posted on 29th January 2015 by Administrator in Economy |Politics |Social Issues

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Most of you, dear Handesblatt readers, will have formed a preconception of what this article is about before you actually read it. I am imploring you not to succumb to such preconceptions. Prejudice was never a good guide, especially during periods when an economic crisis reinforces stereotypes and breeds biggotry, nationalism, even violence.

In 2010, the Greek state ceased to be able to service its debt. Unfortunately, European officials decided to pretend that this problem could be overcome by means of the largest loan in history on condition of fiscal austerity that would, with mathematical precision, shrink the national income from which both new and old loans must be paid. An insolvency problem was thus dealt with as if it were a case of illiquidity.

In other words, Europe adopted the tactics of the least reputable bankers who refuse to acknowledge bad loans, preferring to grant new ones to the insolvent entity so as to pretend that the original loan is performing while extending the bankruptcy into the future. Nothing more than common sense was required to see that the application of the ‘extend and pretend’ tactic would lead my country to a tragic state. That instead of Greece’s stabilization, Europe was creating the circumstances for a self-reinforcing crisis that undermines the foundations of Europe itself.

My party, and I personally, disagreed fiercely with the May 2010 loan agreement not because you, the citizens of Germany, did not give us enough money but because you gave us much, much more than you should have and our government accepted far, far more than it had a right to. Money that would, in any case, neither help the people of Greece (as it was being thrown into the black hole of an unsustainable debt) nor prevent the ballooning of Greek government debt, at great expense to the Greek and German taxpayer.

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TRICKLE DOWN

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Posted on 25th January 2015 by Administrator in Economy |Politics |Social Issues

Guest Post by Jesse

This is about it in a nutshell. ‘Stimulus’ American style comes to Europe.

Printing money and giving it to your cronies inflates asset prices, lines the pockets of the well-heeled heels, but does little for the real economy.

But it doesn’t produce broad inflation (or aggregate demand) so we can do it many times! Success!

“At last the euro’s lords and masters have accepted that something must be done about their zone’s lamentable growth. They will unleash a massive bond-buying programme totalling a reported €1tn. The former BBC economic pundit Stephanie Flanders told the world it was “Santa Claus time”; the European Central Bank (ECB) has ridden to the rescue.

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BEGINNING OF END OR END OF THE BEGINNING

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Posted on 25th January 2015 by Administrator in Economy |Politics |Social Issues

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As we all know, central bankers across the world have only delayed the inevitable economic collapse and made it far worse through their money printing and debt manipulations. Greece started this charade and they appear to be the country which will end it. Fourth Turnings always intensify. Hold on.

Guest Post by Jesse

Syriza Wins Greek Election, Leader Alexis Tsipras Declares ‘End to Vicious Cycle of Austerity’

This is from the live updates at The Guardian Newspaper here.
Here’s summary of a momentous election result for the future of Greece and Europe:
    • The anti-austerity far left party Syriza has won the Greek election by a decisive margin, but just short of an outright majority. With more than three-quarters of the results in Syriza is projected to win 149 seats in the 300 seat parliament.
    • Syriza leader Alexis Tsipras said his party’s victory marked an end to the “viscious cycle of austerity”. Referring to the neoliberal conditions set by the IMF, the European Commission and the European Central Bank, he said: “ The verdict of the Greek people renders the troika a thing of the past for our common European framework.”
    • Outgoing prime minister Antonis Samaras conceded defeated by acknowledging some mistakes. But he added: “We restored Greece’s international credibility”.
    • To Potami, the centre-left party could be the kingmakers in the new parliament, with a project 16 seats. Its leader Stavros Theodorakis has not ruled out a deal with Syriza. “It’s too early for such details,” he said.
    • The far-right Golden Dawn party is projected to come third in election, despite having more than half of its MPs in jail. Speaking from prison its leader Nikolaos Michaloliakos said the result was a “great victory” for the neo-fascist party.
    • Syriza victory has been greeted with alarm in Germany. The ruling CDU party insisting that Greece should stick to the austerity programme. But Belgium’s finance minister said there is room for negotiation with Syriza.
  • Leftwingers across Europe have hailed Syriza win. Spain’s anti-austerity party Podemos said Greece finally had a government rather than a German envoy. Britain’s Green Party said Syriza’s victory was an inspiration.

HOW THE EU ENDS

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Posted on 17th January 2015 by Administrator in Economy |Politics |Social Issues

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