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Tuesday, February 7, 2012

The end of the Credit (Debt) based Financial System is why the Global Economy Must Collapse

Blogman's Notes:

Once upon a time, Economics used to be simple. Goods were manufactured at a certain cost, and sold at a price greater than the cost to produce a profit. Business was not dependent on an ever increasing amount of Credit or Debt to survive. Businesses and individuals saved money to expand their businesses and for rainy days. Credit (Debt) cards were virtually non - existent, and the majority of people borrowed money only to buy a house, even then they put down a substantial down payment. Businesses expanded because they had mad profits and saved money to produce even more goods to sell. This is what lead to stable and even decreasing prices as greater efficiency was achieved due to economies of scale. What this model did was to make America a great country because the Americans had the most amount of surplus money through savings.

However this model does not suit the Banking industry because Banking thrives not on Savings but on Credit, on Debt. The greater the amount of debts that banks can issue, they more profit they can make. Going back to the days of Jesus Christ, the Moneychangers (Bankers) have sought to increase the amount of debt by indebting, not just individuals but more importantly businesses, and even more importantly by indebting governments. Since a government represents the sum total of all people and businesses in a nation or region, government debt is the most desirable debt for bankers. And since governments control armies, bankers can gently nudge governments to launch wars if need be to collect payment on their debt by robbing other countries. This is how the debt game is played; this is an ancient game, and the wizards of Baking have had centuries, even millennia, maybe even longer to perfect the rules, so like odds in a casino that always favor the house, the rules of this game have been rigged to always favor the bankers. The scourge of humanity is modern banking and as has happened frequently in the past, the Bankers will lay waste to the present day world, as they have done with many great civilizations in the past. Few people study History in the light of Money and Finance but almost all great wars are launched with Monetary gain in sight. The public may not be aware of this but the wizards who run nations are certainly aware of what they do. The Bible tells us that the Love of Money is the root of all evil, and that wars came from a desire to steal the money and wealth of others. As an aside, money is not evil, much good can be done with money, it is THE LOVE OF MONEY that is evil! So as the world stares down the bottomless chasm of Global Economic ruin, it may be wise to lay the blame where it lies, with the Bankers and their puppets, the Political leaders of all nations. The following lengthy article does a great job of dissecting the present Economic crisis, rather Economic catastrophe, and explaining it a way that is logical not obfuscatory, as presented by MSM and modern Academics. 

1 Timothy 6:10  For the love of money is the root of all evil...

Peak Money Arrives

The world is running out of money. If money is credit, and credit relies on confidence, there is not enough confidence in the financial system to supply the world with the money it needs. Since the initial credit crisis struck in 2008, credit and money have been withdrawn from the system in such staggering amounts that international trade can no longer grow. The world’s central banks are playing a rear guard action by acting as lender of last resort to banks that no longer trust each other and have stopped lending in the interbank market. As liquidity flows out from the system, the rottenness that has corrupted the foundations of global finance is now exposed for all to see.
This was especially evident in the bankruptcy of MF Global, when the unthinkable happened – innocent bystanders on the Chicago Mercantile Exchange were stuck with over $1.0 billion in losses that should otherwise have been allocated to MF Global’s lenders. For over 100 years the futures exchanges have bragged that no customer on an exchange has lost money due to a broker-dealer’s default. No longer. This is how confidence is lost in the financial system – investors are surprised by large losses from institutions or products thought to be impregnable.
When confidence in the financial system is lost, people don’t trust their money to banks nor to the financial markets. Banks in turn don’t trust their money to anybody but the safest of risks. You then have the making of a large-scale financial collapse, particularly at a time like this, when the world’s economy is heavily dependent on ever-increasing amounts of debt. Since the new debt is essential to repaying the old debt, old debts turn into a default, and as one default leads to another, an economic depression ensues. Credit becomes scarce, and so money disappears. This is the inflection point at which we are poised entering 2012. The question is: How will this play out?

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