Hidden Money – Mike Maloney

How The World Really Works – Four Horsemen Documentary

Excellent documentary from Four Horsemen of how the world really works.

Jim Sinclair’s Immediate Exit Warning

In the recent weeks the warnings have been coming more frequent but none so stark as Jim Sinclair’s warning to exit the System now because the financial Nazis are coming. Certainly the Cyprus debacle has lent an urgency, but for US citizens, it must be noted the bail-in-like powers are already in place as part of the Dodd-Frank financial reform act passed last year.

From SilverDoctors

Legendary gold trader Jim Sinclair sent out an email alert to subscribers over the weekend, advising investors that You must now act to exit the system!  Sinclair, who as recently as 2 weeks ago advised those attending his NYC meeting that investors have 2 years to withdraw their IRA and 401k funds from the system, has changed the urgency of his call significantly, stating:
You must exit the system immediately because the Financial Nazis struck in Cyprus and now are moving directly towards you. This is simple fact, which if you ignore will be akin to the rise of the Nazis in Germany for those that knew they should, but never made the decision to leave that system.

Sinclair’s full alert is below:

You must now act to exit the system

 

Bail-in

(excerpt)

The US has already put in place bail-in-like powers as part of the Dodd-Frank financial reform act passed last year. The law includes a resolution scheme that gives regulators the ability to impose losses on bondholders while ensuring the critical parts of the bank can keep running.

Employees would be paid, the lights would stay on and derivatives contracts would not have to be instantly unwound.

Click here to read the full definition…

I have given my all to communicating the most important conclusions concerning your future financially and therefore on every level of life.

1. The operation to depress the gold price since the high was limited in time and is now behind us in terms of maximum pain for the bulls.
2. You must exit the system immediately because the Financial Nazis struck in Cyprus and now are moving directly towards you. This is simple fact, which if you ignore will be akin to the rise of the Nazis in Germany for those that knew they should, but never made the decision to leave that system.

 

The saddest fact is that many of you have thrown away your gold share and bullion insurances to the enriched Bankster bullies. You will now pay no attention to the need to exit the system. It is as if you are moths attracted to the flame of danger, and a sloth in that you are too lazy to take the actions required to protect yourselves. If you do not pay attention to this interview you are going to sacrifice all you have worked to accomplish in your lives. Most certainly those that are planning any form of retirement are right now dancing on the head of a needle.

 Here are a few most important actions you, in my opinion, must take.

 Government sponsored retirement tax preferential retirement programs must realize that one of the IMF plans in Cyprus was to nationalize all retirement programs. That means steal your retirement funds and assets, replacing them with some form of future paper assuming Cyprus returns to solvency.

 You must, in my opinion, face whatever tax consequences there are and close your retirement programs. You are in clear and present danger of confiscation for questionable paper of whatever you hold in these type accounts. In a financial sense you are exactly what the ghettos in Germany and Poland were when they knew they should run but found any excuse possible not to do what was logically screaming at them to take action.

 I am screaming at you from every pulpit I can find, with no personal benefit that you must take various actions and take them now. The fact the IMF, a major international body, had the audacity to demand that Cyprus nationalize all it pensioners and confiscate large percentages of the account values should be like a flashbulb going off in your eye to wake you from your sheeple slumber.

 Bite the bullet.
Pay the tax.
Get your assets back.
Get out of the system.

 The next action you must take is to get as far away from social media, and the use of credit cards for everything because you are painting a picture for the tax collectors that are going to go ballistic in their effort to collect your money from you in order to create revenue for governments going broke, or who are already hiding the fact they are broke.

 It might take some effort, but stop your kids from informing the world of everything you and they have done on their social media. Computer based comparisons of family income to family activities will spur punitive audits when the apparent expenses are greater than the combined declared income.

 The revenues services of every country are cranking up their computer search programs to grab information. You must stop so freely providing information, and maybe bragging on social media to make others think your lives are better than they really are. You must turn off the switch on your children use of social media if they are still under your authority. You must suggest to your emancipated children that they are foolish in informing the world of every little thing that do in search of 1000 friends on social media that would not really give a damn if they had a problem.

 As an example of the new high tech snoops you are feeding with your credit cards and social media, research the following article.

 IRS High-Tech Tools Track Your Digital Footprints – Yahoo! Finance

– Charting and analyzing social media such as Facebook
– Targeting audits by matching tax filings to social media or electronic payments
– Tracking individual Internet addresses and emailing patterns
– Sorting data in 32,000 categories of metadata and 1 million unique “attributes”
– Machine learning across “neural” networks
– Statistical and agent-based modeling
– Relationship analysis based on Social Security numbers and other personal identifiers

  Click here to read the full article…  

 You must eliminate to the greatest degree possible all the agents between you and your assets.

 There is no question that leaving assets in street name with your brokers and bankers is a financial death wish. The preferred way of holding shares of stocks has always been in your own name as physical certificates. The second best method, but much better than street name, is to hold your shares in Direct Registration. Do not expect your banks, brokers or companies you are invested in to make it easy to get out of their system. They will fight you all the way, but you have to insist on your rights regardless of their refusal or false dire warning of negative circumstances when you succeed in demanding your rights. Most of it exaggerations of what is really minutia when it comes to protecting yourselves.

 Large credit balances in the form of banking accounts in CDs or in pure cash is now holding up a red blanket for the fighting confection bull of governments seeking your assets to hold off their financial collapse from their own spending sins of decades.

 We can discuss in open forum, face to face or in writing later what to do with your assets but right now, as Braveheart cried, they must have FREEDOM from the system. There is much more that needs to be done, but what you have here is what should be called first priority. This should be viewed as call to action. I have not been too much off the mark on calling the developments not only of the past 12 years, but for the entirety of my successful career of more than 50 years in finance.

 You ignore me at your own severe personal risk.

Source: SilverDoctors

Sinclair – Something Has Western Central Banks Terrified

Jim Sinclair gave an interview with King World News the state of Western Banks and how the Quadrillion of derivatives will eventually lead to more Cypriot solutions.  Eventually in a couple of years from now people will “realize that gold is for your savings, and currencies are for doing business”.

Eric King:  “Jim, Bloomberg had a story headlining on their site over the weekend claiming that depositors may lose as much as 60% on deposits in Cyprus.”

 Sinclair:  “This is all because of the one quadrillion dollars in derivatives that are in the financial system.  Six years ago the Bank for International Settlements (BIS) at that time reported that the amount of derivatives already outstanding exceeded one quadrillion dollars.  This number is unimaginable to most human beings.

But that is the actual number (over one quadrillion dollars).  They never should have released that number because it created a bit of panic.  Central planners immediately changed the accounting method for derivatives and this appeared to bring the total amount down to under $700 trillion.  So through the use of an accounting gimmick the total was reduced, but it hasn’t changed the frightening reality of what the world is facing….

“But the real size of derivatives outstanding is well over one quadrillion dollars, and something clearly has our central banks terrified right now.  We already know that Bernanke has led the US to significant amounts of QE, and the same is true of euro land.  Maybe they are now looking at what the real cost of the derivatives will be and saying to each other, ‘Nobody can create that much money.’

 What we may be seeing now is the fact that the central banks can no longer make the depositors whole.  They are hitting the wall.  This means that money is absolutely going to look to leave the financial system if indeed the final decision in Cyprus is to take money from deposits.  We will know the answer as to what has truly been decided in Cyprus at some point during the April 13 to April 15 time frame.”

 

Eric King:  “Jim, what you are saying here is that we are entering another phase where we can expect a dramatic increase in chaos as the one quadrillion dollars in derivatives causes more financial destruction?”

 

Sinclair:  “Absolutely.  When people say that the Cypriot banks lost because of being in Greek debt, what was one of the Greeks’ greatest sins?  They used over-the-counter derivatives in order to hide the real condition of their balance sheet.

 Depositor money, brokerage money, and clearing house money have been tangled up in the mountain of derivatives as the banks have used this cash to speculate in an attempt to make huge bonuses for bank executives.  Unfortunately, most have lost their ass.  This means that in many cases depositor money has already been wiped out.

 What do you think happens when Buffett reports that he made $10 billion in derivatives?  Somebody else lost $10 billion and it was most likely one financial institution.  There is no question that what we are seeing right now is not isolated to Cyprus.  It has happened everywhere, but is has been camouflaged by making the depositors and the banks whole.  What Cyprus will reveal is that losses do not stop with the bank’s capital.  Losses roar right through bank capital and take depositors’ money. 

 What people don’t realize is that the derivatives, especially the ones created between 1991 and 2007, are never-ending manufacturers of greater size of paper obligations because you have to put these additional items onto the derivative chain as the markets have certain events take place such as a downgrade of debt.  God help us when we have a meaningful downgrade of US debt.

 So, clearly our central banks are now very uncomfortable.  They are worried about something of significant size which has yet to be revealed to the public.  I guarantee you that whatever it is will have to do with the derivatives created between 1991 and 2007.”

 Sinclair also added:  “As money flees the financial system, one of the top items being purchased will be physical gold.  Right now the gold market is engaged in an enormous fight between physical and paper.  But two to three years from today people around the world will come to realize that gold is for your savings, and currencies are for doing business.

 There’s absolutely no question that when it’s confirmed that the depositors’ loss of money is not a tax, not a new way of making things whole, but in fact the actual disaster that the global banking system is currently in, you will have a move toward physical gold greater than anyone on this planet now believes is possible.  We will also witness the beginning of a level of fear and panic not seen in this world since 1929.”

Source: King World News

Bankrupt Governments Always Fall Back On Tried and Trusted Playbook

More and more bankrupt governments are slowly turning towards various controls. As the global financial system worsens will governments resort to the playbook of old?

Submitted by Simon Black of Sovereign Man blog,

Throughout history, bankrupt governments in decline almost ALWAYS fall back on a time-tested playbook.

This includes imposing controls on EVERYTHING– wage and price controls, trade controls, capital controls, border controls, people controls. Everything. And this idea goes back to the dawn of human civilization.

The Third Dynasty of Ur in ancient Mesopotamia, for example, built a very early version of a commodities future exchange. People would commit to terms of trade on clay tablets for the future delivery of agricultural crops, then trade the tablets in a secondary market. It was genius.

But when the economy started to turn in earnest, the government set up a bizarre, complex, and increasingly bureaucratic system of regulating such trade and collecting taxes from it. They even started rationing resources and regulating irrigation.

It was debilitating. The market could no longer function, and the society soon collapsed.

Later, in the 4th century AD, Roman Emperor Diocletian infamously failed to control runaway inflation by fixing the prices of everything from labor to food to articles of clothing.

In the 1790s, the post-Revolution French government tried the same trick whilst inflating away their new paper currency. French farmers could no longer grow their crops profitably, and the 1793 ‘Law on Maximum’ created severe shortages of staple foods in the country.

In our modern times, Argentina has become the poster child for these tactics; the government has fixed prices at the grocery stores, banned advertising, prevented people from holding precious metals and foreign currency, nationalized pensions, and restricted beef exports.

Needless to say, these policies have been a complete disaster for the country. But as the rest of the world looks on, people in ‘rich’ countries foolishly believe that ‘it can’t happen here.’

This is wishful, ignorant, dangerous thinking. It can happen. It is already happening.

Just in the past week in the Land of the Free, for example, two pieces of legislation have been quietly introduced.

One, S.435, is an appalling bill that proposes to BAN the exportation of crude oil or refined petroleum products that originate in the United States.

The second bill would follow the European model and introduce a financial transactions tax (FTT) in the US. Like all taxes, they start with a small sum (0.03% in this case). And, like all taxes, we can be certain that this one would rise as well.

The FTT would apply to nearly all financial instruments– stocks, bonds, options, derivative contracts, etc. Everything except, of course, US government debt purchased directly from the Treasury.

To be clear, neither of these is law yet. But both give a very clear idea of how far the political elite is willing to go.

So, again, if you think that gold criminalization, price controls, and IRA/pension confiscation could NEVER happen where you live, think again. The chances of something happening are clearly greater than zero… which begs the question: why take the risk?

If you diversify internationally– establish a foreign bank account, form a Global Self-Directed IRA, store gold overseas, etc.– you substantially mitigate these risks. And no matter what scenario plays out, you won’t be worse off for having done these things.

Source: ZeroHedge

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The One People’s Public Trust’s (OPPT) UCC Filing of Foreclosure

I have been researching this topic for a number of years now by never posted on it until I recently started to see it come more mainstream. Max Keiser ran a piece regarding the Uniform Commercial Code (UCC) filing by The One People’s Public Trust (OPPT) pointing a story in the Guardian Express. The background to all this is all English-speaking countries use the Common law system. Put simply there needs to be a victim to your crime. Governments have implemented taxation and administrated their own system using commercial laws (Admiralty law) whereby a person through their ignorance cedes their power to commercial courts. In other words, taxes are voluntary. One explanation is

Unfortunately, the actual law, the common law has been usurped by another system run by the legal industry and supported by the mass media – civil law which is ALL commerce based. We are compelled to live under Admiralty Law or the law of the sea without even realising it ! And without realising that all commerce is based in the concept of bilateral contract. Think about this. Because you won’t read it in newspapers and you won’t get it from the mass media. Thus all statutes and ALL Acts of Parliament (I repeat, ALL Statutes and ALL Acts of Parliament from Parliament) are only given the ‘force of law’ by the individual consent of the governed. They are NOT THE LAW OF THIS LAND. PARLIAMENTS DO NOT MAKE LAWS. Stop believing the nonsense ! You are tricked into commerce because the legal system of this nation has devised a language of its own called LEGALESE – the language of a Society called the Law Society. Legalese is nothing but the forked tongue of COMMERCE. You unwittingly contract with the state without even realising it and because ignorance is not a defence, you sell yourself into slavery.

Astonishing as this story is, I did manage to gather some proof to this. Dun & Bradstreet maintains a database of over 213 million companies globally. I did a search and managed to find many Irish government departments themselves are registered as corporations. Indeed, Ireland itself is a corporation. Many groups have set up in recent years including the lawfulrebellion.org in the UK which aim to awaken people.

The Guardian Express has reported on an open letter by The One People’s Public Trust (OPPT) to the Swedish Government as follows :

The members of a group calling themselves The One People’s Public Trust (OPPT) have been in the news lately, because of  recent UCC filings, with regards to the Uniform Commercial Code (UCC).

The UCC is not a U.S. law, rather a uniform code of conduct for Intra-State and Global commerce, drafted and approved by private organizations, to be enacted by the individual U.S. States, and World Governments.

It has been approved by all 50 States in the U.S., Washington, D.C., The Commonwealth of Puerto Rico and The U.S. Virgin Islands, as well as all major World Governments.

What follows is a Press Release of a letter sent to the Prime Minister of Sweden, Fredrik Reinfeldt.

>>>Press Release – For Immediate Distribution<<<

Prime Minister Fredrik Reinfeldt,
Regeringskansliet
103 33 Stockholm

February 20, 2013

Open Letter to the Prime Minister and the Ministers of THE GOVERNMENT OF SWEDEN

Dear Prime Minister Fredrik Reinfeldt,

I am writing this letter to you to inquire about a very pressing issue, an issue that touches every human being on this planet, at this very moment.

I stand in my honor before you. My request to you has no other motive but my human desire to uncover the truth, and bring remedy and hope to the rest of my broken hearted brothers and sisters.

It has recently come to my attention, that we, the people of this beautiful country, had a corporate government. This implies that we actually did not have a government serving the needs of its people but a corporation, acting as a government.

*SEC lists SWEDEN KINGDOM OF as a corporation.

The difference between the real, active and lawful government and the corporate government that was operating in its place is enormous. We the people, had, by an act of deception, become commercial commodities; our lives had a monetary value to the corporation and we were considered cargo or chattel. Our personal possessions could be seized from us, our children taken from us, our lives lost and our dreams stolen by it.

We belonged to the CORPORATION. We were its slaves.

This is very important information for all of us; information that we the people of this planet are waking up to.

~~

On December 25th 2012 the world changed, but not the way we were told it would though. No cataclysmic destruction, no planetary upheaval, no “End of the World” prophecy came true. Still, the world has changed more than anyone could ever imagine, let alone dream of….

After long years of legal investigations, through a series of UCC filings, and an extensive list of legal notification processes, all the corporate entities around the world were foreclosed upon and duly notified on December 25th 2012 by the One Peoples Public Trust (OPPT).
As the only Law that governed our legal systems was Corporate Admiralty-Maritime Law (Law of Water or Law of Commerce) and not Common Law (Law of the land and the people) these corporate judiciary systems are now foreclosed upon as well.

Since late December 2012 millions of people around the world have been introduced to our new Trust. All of us, including you, are the beneficiaries of this Trust. The funds that were kept in “safekeeping” for the people of this planet by the corporate commercial entities are now being kept for us by the One People’s Public Trust (OPPT).

Every man, woman and child of this world can now step out of the old slavery system that kept us in lack, ignorance, fear and injustice, and finally walk into the new era of personal freedom, abundance, love and compassion.

I know of hardly anyone who enjoyed the old world of oppression, control, poverty and war; the world where the biggest danger to the well-being and the freedom of the people were often their own governments; the world where a self-selected few had the power to control by fear, intimidation, theft, murder and torture the people they were supposed to protect, serve and help.

That world is today in its last, dying days….and it is better this way……

We have reached the end of this mad, destructive and cruel parody. For the first time ever, we are legally free as the divine beings that we truly are, and not the commercial commodity that we had become by the force of deception by a few.

With joy in my heart, I notify you today, that the time of slavery and blind obedience to any and all “authority” and the use of force towards any and all peoples for the purpose of control, be it financial, spiritual, physical or any other, in order to obtain profit, power and dominance over our Divine and Universal rights, is now over.

We, the inhabitants of this planet, are now legally free, equal and abundant!

I urge you to read the attached material. You, along with the rest of us, stand to benefit immensely from this historic change…. in every way imaginable!

For every man and woman alive, there comes a moment when the biggest choice in life has to be made, the choice that will forever change the stream of events to follow.

We all recognize when such a moment is upon us. We are defined by its presence and power. Sometimes our awareness of its might and its consequences isn’t immediate but the result of a rather slow process that ends with a complete transformation and the final awakening to our true essence.

This moment is here now… for all of us. We get to be the generation with enough courage, knowledge, compassion, love and understanding to make this historic leap from darkness into the light, from “reason” to “heart”, from service-to-self to service-to-others.

This letter is to let you know that this historic moment of choice has now arrived for you as well.

My humble request is that you read carefully the attached documents and become acquainted with their authenticity, the love for each of us conveyed in them and the poetry of the manner by which we have all been liberated from our collective imprisonment, be it physical, spiritual, intellectual, financial or moral.

I invite you to join the rest of humanity on this path to love, compassion, freedom, abundance and endless co-creation. Take a long, close look at all of us, including yourself, and your personal struggle towards the betterment of this fragile but beautiful world and see the future that now stands ahead for us all.

Isn’t it glorious!

Come and join us. The world is waking up to our true nature and unlimited potential. There is nobody else who can give value to us and our experience but us.

We now have a permanent legal standing which enables us to turn away from the slavery system and we humans, the incredible beings of unbelievable potential and grace, finally get to dream the dream and build the kind of world that we want to leave for future generations, with pride and a true sense of accomplishment.

The wave of freedom is now visible on the horizon. The veils of the sad, dark and cruel illusion that dominated us for thousands of years are lifting and the bright light of the dawn of the new era is shining upon us! For the first time in history we can dream the dream that our brothers and sisters of times long gone never dared.

The corporate system in which a divine human was a commercial commodity is no more.

The old corrupt entities are falling and their grotesque symbols are being swept away along with them.

History scholars will try to explain the insanity and cruelty that ruled by force throughout the long centuries of suffering and bloodshed. They will try to understand why humanity accepted such abuse of the weak by the force of the strong.

They will find no answers to our history of madness….
.
You will be making a choice now along with the rest of us. This choice stands to affect you and us equally.

I ask you to take time and to listen carefully to that silent voice inside your soul. Only the most attentive of us ever get to hear it. Only the best of us will heed it.

Ask yourself under what liability you will be acting from now on and in whose and what authority.

What “laws” do you intend to enforce from now on and in whose name?

What “authority” do you serve and who do you represent?

The end of this story is now becoming clear and known to more and more of us. Let us hope that the decisions taken from now on by you, and all of us, in light of this historic action taken by the One People’s Public Trust 1776 (OPPT), will be made in accordance with this legally and lawfully enforceable act.

From this moment onward, your actions, as well as the actions of every human being alive on this planet, now and in the future, will carry with them complete personal responsibility and liability as we begin to act in absolute truth, aware of who we really are: divine beings with equal rights and obligations towards one another in perpetual freedom to create.

Endlessly.

Forever.

I invite you to join the rest of us during these historic times. I extend to you my hand in invitation to become part of the solution and not part of the problem; part of the momentous act of the creation of the new world and not part that supports the old, sad, dark world that is no more….. It is no more.

With all my honor, respect and love, I stand in truth and I salute you,

With the utmost sincerity,

Oliver Troll

SEC (U.S. Sequrities and Exchange Commission) Corporate Registered Number
0000225913 SWEDEN KINGDOM OF SIC: 8888
Business Address: Box 16 306
Riksgäldskontoret
103 26 STOCKHOLM
Sweden

http://www.sec.gov/cgi-bin/browse
________________________________________________________________________
Links to the original documents: http://peoplestrust1776.org/ <<<

It remains to be seen what happens but my guess is it will be ignored by governments and the MSM but maybe a few more people will have awakened to how the system really works.

Sources:

1.  Max Keiser
2. Guardian Express
3. The One Peoples Trust
4. Dun and Bradstreet

 

 

2013: Let The Currency Wars Truely Begin

Up until now the G20 countries were shafting each other quietly through various means of currency devaluation. Many new terms for printing money were added to the lexicon. Lately the rhetoric has begun to get more aggressive. ZeroHedge writes of the Russia’s Central Bank Chief’s warning that “the world is on the brink of a fresh currency war”. Along with gold repatriation stories, 2013 is shaping up to be a tough year ahead for Central Bankers.

It will not come as a surprise to anyone who has spent more than a few cursory minutes reading ZeroHedge over the past few years (back in 2009, then 2010, and most recently here, and here) but the rolling ‘beggar thy neighbor’ currency strategies of world central banks are gathering pace. To wit, Bloomberg reports that energy-bound Russia’s central bank chief appears to have broken ranks warning that “the world is on the brink of a fresh ‘currency war’.” With Japan openly (and actively) verbally intervening to depress the JPY and now Juncker’s “dangerously high” comments on the EUR yesterday, it appears 2013 will be the year when the G-20 finance ministers (who agreed to ‘refrain from competitive devaluation of currencies’ in 2009) tear up their promises and get active. Rhetoric is on the rise with the Bank of Korea threatening “an active response”, Russia now suggesting reciprocal devaluations will occur (and hurt the global economy) as RBA Governor noted that there is “a degree of disquiet in the global policy-making community.” Critically BoE Governor Mervyn King has suggested what only conspiracists have offered before: “we’ll see the growth of actively managed exchange rates,” and sure enough where FX rates go so stocks will nominally follow (see JPY vs TOPIX and CHF vs SMI recently).

Via Bloomberg:

The world is on the brink of a fresh “currency war,” Russia warned, as European policy makers joined Japan in bemoaning the economic cost of rising exchange rates.

“Japan is weakening the yen and other countries may follow,”

 …

 The push for weaker currencies is being driven by a need to find new sources of economic growth as monetary and fiscal policies run out of room. The risk is as each country tries to boost exports, it hurts the competitiveness of other economies and provokes retaliation.

 Yesterday “will go down as the first day European policy makers fired a shot in the 2013 currency war,” said Chris Turner, head of foreign-exchange strategy at ING Groep NV in London.

 …

 The skirmish may lead to a clash of G-20 finance ministers and central banks when they meet next month in Moscow, three months after reiterating their 2009 pledge to “refrain from competitive devaluation of currencies.”

 While emerging markets have repeatedly complained about strong currencies as a result of easy monetary policies in the west, the engagement of richer nations is adding a new dimension to what Brazilian Finance Minister Guido Mantega first dubbed a currency war in 2010.

Source: ZeroHedge

Jim Rickards: Currency Wars

Jim Rickards, author of Currency Wars gives a breakdown of an economic wargame of whats to come.

Mexico To Restrict Cash Transactions

Another country has joined the list for limiting cash transactions by it citizens. Mexico has signed into law, a ban on large cash transactions carrying a minimum penalty of 5 years in prison.

Large Cash Transactions Banned In Mexico … Outgoing Mexican President Felipe Calderon has signed into law a ban on large cash transactions. The ban will take effect in about 90 days and it is part of a broader effort to control monetary flows within the country. Under the law, a Specialized Unit in Financial Analysis operating within the Attorney General’s Office will be created to investigate financial operations “that are related to resources of unknown origin.” For real estate transactions, cash payments of more than a half million pesos ($38,750) will be forbidden and, for automobiles or items like jewelry, art, and lottery tickets, cash payments of more than 200,000 pesos ($15,500) will be forbidden. The law carries a minimum penalty of five years in prison. – Forbes

and as the Daily Bell put it

The power elite intends to lock down the world, it seems, in order to track every monetary transaction of any significance.

We wrote about this trend previously in “Spain Bans Cash.” Here’s an excerpt:

… As we have long predicted, the phony “sovereign debt” crisis in Europe is being used to justify all sorts of authoritarian measures.

…..

these national bans continually pressure more and more freedoms, including the freedom of shielding one’s wealth from prying eyes. And that’s just the point …

In the last 2 years the following countries have made similar restrictions.

• USA,
• Argentina,
• Italy,
• Greece,
• Ireland,
• Sweden,
• Spain

Source: The Daily Bell

Serfdom Up Ahead?

An article by Michael Krieger of Libery Blitzkrieg blog sums up the global financial system and what lies ahead if we don’t react now. Krieger makes the point that things are going to get much worse than 2008 and no amount of money printing will work this time. The levels of corruption are staggering and more and more people are awakening which is quite disturbing to the global elite.

The Tipping Point
Serfdom has simply been pushed too far.  Globally.  What we are about to witness, incredibly, is not just a change in the way that one or two countries or even a specific region of the world operates.  No, what we are about to witness is a complete transformation globally, a change that I believe will be incredibly positive and will ultimately free us from the shackles upon the minds of humanity as a species.  The internet has allowed us to connect with one another in a manner never before possible, and this tool has permitted us to blast through the lies of the global elite that is desperately trying to hang on to control.  Whether it was the intention from the outset or not, what globalization has created is a very small class of incredibly wealthy people that are extraordinarily corrupt as a group and also above the law.  They are able to hide enormous amounts of money.  They are able to insider trade.  They are able to deal drugs.  They can do whatever they want, yet if anyone below them does the same they are prosecuted in a manner that resembles Medieval torture.

Many people say to me, “but Mike, aren’t things always corrupt, hasn’t it always been this way?”  To this I answer yes and no.  Of course within any complex societal and political structure there will be elements of corruption.  This is obvious.  However, there are cycles of corruption and degrees.  At some point, particularly toward the end of a cycle where globalization creates this “super corrupt class” of individuals roaming the planet doing as they please with us pawns, you reach a tipping point.  That tipping point has already been reached.  What we are witnessing now all over the world are merely the effects of that tipping point clashing with the corrupt global elite that refuses to budge an inch and reform even though it is in their best interest to do so.  No, they are so arrogant and criminal after decades of doing what they please with zero consequences they would rather attempt to implement a global police state rather than deal with the nightmare of their actions and make the world a better place.  Therefore, it is up to us, as a species, to reclaim what is our birthright.  Freedom.

As I wrote the other day on twitter, what we have today is not Socialism or Capitalism, it is Ponzism.  I am talking on a global level.  Basically every country and every region.  The biggest pitfall we must avoid as a species is allowing the global power structure to pit us against one another.  These guys don’t fight wars, they send you to fight them.  Don’t fall for it.  Their number one trick once things get bad within their own nations is to attempt to create a war.  This checks two very important boxes for them.  First, it creates a distraction for the general public and even makes them think that they are part of a team that needs to be cheered.  It’s like a big football game but with thousands or millions dying on the field.  Second, it allows the government to do pretty much anything they want in the name of “winning the war” or “national security.”  This is exactly why the “war on terror” was the perfect war for a kleptocratic elite.  It is a war with no end, so theoretically they can constantly claim war as an excuse for taking away civil liberties.  The problem for them at the moment though is that the American people are waking up to this scam.  Therefore, a larger and much deadlier war is in their best interests.  If it is in their best interest you can be sure it is in our worse interests. Therefore, we must do everything we can to prevent it.

…

China
Unless you have been living under an economic rock for the past six months, you are aware that China is in the midst of a serious economic slowdown.  As I have said for years and continue to say, this is not a small bump in the road.  This is a major contraction.  Similar to the U.S., China had a choice in the 2008 slowdown.  They could have taken the hit and moved toward measures to rebalance the economy away from an over emphasis on investment and construction spend and toward consumption, but they did nothing of the sort.  Rather, they doubled down on their prior mistakes and mal-investments in an epic bet on the ponzi economy.  After a brief sugar high, this has now failed.

So with the economy back in steep decline, the authorities fear pumping massive stimulus in as they did four years prior due to their justifiable fears of sparking rampant inflation.  Meanwhile, thanks to social networking, citizens have become more aware of the incredible corruption and theft of their leadership, whether in the political or business world.  They are increasingly acting out about it and it is becoming so blatant that even China’s legendary control of media is unable to direct the plot.  The most recent outburst came from the Foxconn (a major supplier to Apple) factory in Taiyuan, China which employs 79,000 people.  While details are sketchy, most accounts point to the riot, which reportedly involved 2,000 people, being sparked by a fight between security guards and workers.

…

Of course, China’s leadership was well aware of all of this before the Foxconn incident came onto the scene, so what is a good authoritarian regime to do?  Well, you attempt to direct the rage and angst to an outside enemy.  In this case Japan.  Zerohedge has a great report on the anti-Japanese violence and hatred that burst onto the scene recently.  The link to their piece Postcards from a Furious China really says it all.

Europe
Like the Middle East, the Southern countries of Europe have been in and out of rage now for almost two years.  The most recent explosions onto the streets of Greece and Spain are particularly disturbing since the inept clownish leadership on the Continent had supposedly “solved” the crisis for the third time just a few weeks ago.  Or was it the fourth time?  Really, who’s counting anymore…

Let’s start with Spain.  While Greece is still on fire, Spain is where the real action is due to the size of its economy and the importance it has to the political EU hacks.  Not only were there enormous protests this week in the capital Madrid in reaction to austerity measures, but there is also a very significant secession movement picking up steam in Catalonia.  This isn’t about leaving the euro, this is about leaving Spain!  For those that aren’t aware of Spanish geography, Catalonia is the wealthiest region in Spain and it is where Barcelona is located.  First, we saw enormous protests in Catalonia about a month ago, which I covered here.  Now we see that last night the regional parliament approved a referendum on independence that will apparently be voted on during regional elections on November 25.  Reuters covers the story here.

While this is hugely important, let’s not overlook the massive demonstrations in Madrid this past week.

Now let’s talk Greece.  I think a lot of people brushed off this week’s protests as “oh it’s just the Greeks in the streets again.”  This is a mistake.  These demonstrations were different and here is why.  From the UK’s Guardian:

 

 

In a departure from other mass protests, members of the police force, army, navy and judicial system joined public and private sector employees on the streets. One police officer, who preferred not to give his name, said the Greek state “should feel deep shame” at imposing cuts on the very people whose protection it sought.

Once the people that are being paid to defend the regime start opposing the regime it is game over.  It appears we are there in Greece.  Full article here.

The United States
This is the big one of course.  While we have seen outbursts from the Tea Party and Occupy Wall Street movements ever since the banker coup of 2008, these movements have not been as sustained as demonstrations in other parts of the world.  This is about to change.  I am firmly of the view that the Obama Administration has pulled out every  trick in the book in order to get reelected this year, and that this strategy will probably succeed.  What I think the vast majority of people voting for him as well as investors fail to comprehend is that once this guy gets in and doesn’t need to worry about getting reelected he will leave everyone outside of his puppet masters out in the cold.  You think he has been bad for the poor and middle class so far via his inflationary policies?  Well you haven’t seen anything yet.  I believe there is a decent chance he will push “austerity” on the public as soon as he is reelected.  All the suckers that voted for him will be up in arms and the only ones that will be protected, as usual, will be the crony capitalists that own him.  Even if he doesn’t do this, his other option is merely to keep spending and force The Bernank to print more money.  The cost of living will surge and the poor and middle class will get crushed no matter what.  I covered this in my recent piece “2013: When Money Printing Meets Supply Constraints.”  The American Spring will get going in 2013.

 Just Say No…to War
The writing is on the wall folks.  The global economy is headed back down into depths that will prove worse than 2008, and this time no amount of money printing and propaganda will be enough to hold things together.  TPTB know this.  We need to remember that this isn’t just a battle between the masses within our distinct nations and the 0.01% of oligarchs that have used the past four years to harvest more of our wealth.  This is also a battle between humans collectively and themselves.  We need to grow up as a species and take charge of our destiny.  We need to stop falling for their tricks and fighting their stupid wars while they hide in their castles, parliaments and skyscrapers.  The first thing we need to do is say no.  No more.  It’s time to evolve.

Paper Currency Is In the Final Stage of the ‘super cycle’

Money manager Felix Zulauf while been interviewed on King World News joined a long list of people warning of the end of the current monetary system.

“The global banking system, particularly in the industrialized world, is still highly undercapitalized.  That’s the big problem.  So if anything goes wrong, bank balance sheets are highly leveraged and you have a problem.  The central banks were running behind the curve.”

“Over the last couple of months, central banks have woken up and they see the risks, particularly the move by the ECB here in Europe means that they are ‘all in’ now.  That means they will finance whatever it takes to not let the system go down.  For the short-term this gives you some assurance.  For the long-term it’s a different story because there is a cost associated with this….

“The cost is that the fiat currency, paper currency standard, is in the final stage of the ‘super cycle.’  Fiat currency systems always collapse at the end.  We are in that stage of the super cycle where things are accelerating.

 I don’t know how many years we still have, but you can assume that central banks, as the ECB stated just recently, will do everything necessary to prevent a collapse of the system.  That means they will even finance bankrupt governments, they will finance bankrupt banks, they will finance every bankrupt entity that is important to the system.

 That means they debase our paper currencies further and further, and in an accelerating way.  This is very bullish news for all of the gold holders of course.  A good year or so ago, gold had accelerated into a sort of a climax peak above $1,900.  It has taken almost a year to correct that sharp advance.

I think gold has absorbed the selling pressure very well, and has gone through a lengthy, cyclical corrective process, into the low $1,500s.  There was always a risk that it could break down once more to make for a climax low, but I don’t think this is likely anymore.  The odds of that happening have decreased.

The recent announcements of Draghi and Bernanke means there is no going back as the Central Banks are going full out to protect the system.

The recent change at the ECB that they are ‘all in’ is a big plus for gold because it’s a big negative for paper currencies, and gold is just the other side.  So while gold has run up into the $1,700s, we could any time see a setback of $50 or $60 or so.  That would be normal.

When asked how the collapse of the fiat system will unfold, Zulauf responded,

“That’s a difficult one because I cannot tell you when it occurs, but usually in a super cycle you have to debase your currency more and more.  You monetize your debt more and more.  Your level of debt on a public-sector basis, and on a system-wide basis goes higher and higher until the system collapses.

 I think we first see, over the next couple of years, the transfer of government debt from private balance sheets to central bank balance sheets.  I do believe the 30 year bull market in government bonds is over.  I mentioned in the media (Barron’s) Roundtable that one should be selling half of what he owns, and should sell the other half in September at the latest.

I think the whole game is over.  Bonds are very overvalued.  The real return is negative.  Normally bonds yield at least as much as nominal GDP growth.  Nominal GDP growth at the present time is about 3% or 4% in the US.  I’m not suggesting we go right there tomorrow (in terms of yield), but bonds are very overvalued. I have stayed bullish, but it’s over.  The game is over and we have to look for other assets.”

 Felix also predicted a plunge in stocks:  “I think over the next two years or so we will probably see 1,000 in the S&P again (a decline of more than 30%).”

Felix also added: “Obviously policymakers are completely lost in this environment.  Therefore, when the market forces are such that it jeopardizes they system, and they dislike it, then they change the rules.  For instance, if interest rates of government paper shoots up, like it was the case for Spain or Italy, then the central bank comes in and provides the money, and buys whatever it takes to move the interest rate to levels it likes.

Source: King World News

Sweden To Go Cashless

The Swedes make good sheep. Only 3% of all transactions are with cashless as society is poised to go fully digital. Welcome to the Matrix.

 

Hyperinflations of The Past

The chart below is originally from a ZeroHedge article written about the 56 documented instances of hyperinflation in the modern, and not so modern, world and zero HyperDeflation instances. Note the length of time taken for prices to double.

What Happens When Fiat Currency Dies?

Nice article on ZeroHedge explaining the steps of a fiat currency dying.Funny ting is, the pattern has remained the same for the last 4000 years. Why would it be any different this time?

 

This is today’s reality. It can happen here, it probably will happen here. And frankly, it’s all unfolding almost exactly as it has so many times before throughout history:

1. A nation rises to greatness and becomes wealthy based on sound principles and the hard work of initial generations.

2. Eventually, being wealthy becomes the natural expectation… an entitlement, rather than a goal to work hard for and achieve.

3. A nation begins living beyond its means to maintain the high life without the hard work, leveraging its credibility to trade tomorrow’s production for today’s consumption.

4. Living beyond its means eventually becomes unsustainable. Government begins to slowly, then staggeringly, devalue its currency.

5. The market (i.e. people) finally wake up to the fraud being perpetrated.

6. Financial repression usually follows– high taxes which steal from the productive, negative real interest rates which steal from the savers, etc.

7. Capital flight comes next. People take their money and run.

8. Governments implement capital controls, border controls, price and wage controls, and anything else they can do to maintain the status quo. People find out who the police are really there to protect and serve.

9. Capitulation (default) is the endgame; the system resets itself and begins anew.

This is nothing new. From the 3rd Dynasty of Ur (2000 BC) to Medieval Venice to the familiar stories of Rome and the Ottoman Empire, the world is full of monuments to the past greatness of failed civilizations.

We’re seeing the same pattern unfolding now. And sure, anything’s possible. Maybe the skies open up and the unicorns come out to play and the whole world manages to fix itself without skipping a beat.

But let’s live in reality: there are consequences when nations go bankrupt. And nearly every western nation on the planet is insolvent. That is a fact.

Certainly, the lies from our political leaders are entertaining. But how many more revolutions, riots, defaults, bank runs, stimulus packages, nationalizations, tax increases, pension grabs, etc. will it take to acknowledge what’s happening?

Can anyone afford to keep ignoring reality? Can you?

GDP Rigging

Karl Denninger of Market Ticker writes of the bush tax cuts and Obama’s payroll tax cuts expiring and how easy it was to use these to manipulate GDP figures to make it appear the economy has grown.

First comes the simple explaination of how GDP is calculated

Remember folks that GDP = C + I + G + (x – i)

That is, private Consumption + private Investment + Government (spending) + (net exports)

If taxes go up then either “C” or “I” must go down, since only people pay taxes.  That is, you must either consume less to pay the tax or invest less (it’s a balance sheet; it must balance.)

Government spending decreases of course make “G” go down.

Now remember that during this entire debate nobody has talked about what deficit spending really does and why it’s impossible to maintain it forever. 

Government deficit spending simply increases GDP by fraudulently inflating credit money.  That is, it makes “GDP” go up (mathematically) but does so by increasing the denominator of all monetary units in the system, and therefore causes prices to rise since again, for each unit of GDP produced one unit of money (or credit) must exist to purchase it.

That is, GDP = (m + c)  (money plus credit) by definition.

Or, if you prefer:

GDP / (m + c) = 1

Now, how MSM (presstitutes) ignore the manipulation of GDP figures

This means that for each unit of GDP if you emit more credit money into the system then each unit becomes worth less and buys less.

But that’s never discussed in the mainstream media.  Now, however, the converse is being discussed.  The common claim is that about 3% of GDP will “disappear”, or $450 billion a year.  That’s the sum of the expiring tax cuts + the sequester.

Heh wait a second!  If that’s what happens to GDP when that goes away then you’ve just admitted that arithmetic is still truth and that GDP has been fraudulently inflated by these very same deficit-spending games and since the means of doing so was to emit more credit money into the system (the selling of bonds by the government) the average person in the nation has had their purchasing power debased by the exact same amount.

I love it when the punditry accidentally tells the truth and gets caught in their own trap, validating the very points I’ve been pounding the table on for years.

Economic Alert – ZeroHedge

Its a rarity that ZeroHedge issue an economic alert, but after the French and Greek results an ongoing worsening of the global economic environment, they have this time.

There are some people who also believe that the private Federal Reserve with the Treasury in tow has the ability to prolong the worst symptoms of the collapse indefinitely, or at least, until they have long since kicked the bucket and don’t have to worry about it anymore (the ‘pay-it forward to our grandkids’ crowd) .  I can say with 100% certainty that most of us will live to see the climax of the breakdown, and that this breakdown is about to enter a more precarious state before the end of this year.

Daily bad news.

A pummeling hailstorm of news items and international developments have made the first half of 2012 almost impossible to track and analyze.  The frequency at which negative information has surfaced is almost dizzying.  However, a pattern and a recognizable motion are beginning to take shape, and, I believe, a loose timeline is beginning to form.

Decline of Baltic Dry Index a sign of a dramatic downturn to come.

At the end of January, I covered the incredible nosedive of the Baltic Dry Index (a measure of global shipping rates that signals a fall in global demand) to historic lows.  I pointed out the tendency of stocks and the general economy to crash around 8 months (sometimes a little longer) after the BDI makes such a dramatic downturn.  Mainstream analysts, of course, attributed the fall to an “overproduction of ships”, which is the same exact excuse they used when the BDI collapsed back in 2008 just before the derivatives bubble burst.  It would seem that the cable TV talking heads were wrong yet again, as the international market facade quickly evaporates right in line with the BDI’s almost prophetic knack for calling an economic derailment in advance.

Reasons to be ready.

The European Union Is Officially Dead In The Water

Stick a fork in er’, the EU is done!  We are talking about full scale dismantlement, likely followed by a reformation of core nations and multiple collapse scenarios of peripheral countries.  The writing is all over the wall in the wake of the latest election results in Greece and France, where, as alternative researchers have been predicting for some time, the battle between the government spending crowd and proponents of austerity has reached a fever pitch. 

The Greeks and the French are royally pissed over draconian cuts in public programs and the destruction of pensions which have been a mainstay of their economies for quite some time.  They are also furious over being sold off like collateral to the IMF and World Bank.  Rightly so.  Like the American taxpayer, the taxpayers of floundering EU nations are wrongly being held responsible for the financial mismanagement and fraud of their governments and global banks which have remained untouched and unpunished for their trespasses.  The problem is, the voters of both countries are signing on to the socialist/quasi-communist bandwagon in response.  In Greece, the Left Coalition Party, a splinter group of the traditional communist party, has now taken a primary position of power:

http://www.reuters.com/article/2012/05/07/us-greece-idUSBRE8440DG20120507

In France, voters have elected socialist Francois Hollande (a Bilderberg attendee), whose latest promise is to spend France into recovery through his “pro-growth agenda”:

Conflict between France and Germany will affect austerity.

Germany, which is the only economy left holding the EU together, has been unyielding on austerity cuts.  A conflict between France and Germany is now inevitable.  Neither will compromise their position, and I can see no other eventual result than a reexamination and perhaps abandonment of the EU charter. 

Europe is moving slowing away from the dollar.

Another major concern for Americans is the fact that Europeans are inching towards an abandonment of the dollar.  Francois Hollande has openly called for an end to the dollar’s world reserve status, and with a majority backing of the French people, he could easily make this happen, at least where France is concerned.  All it takes is for a few key countries to publically and completely drop the Greenback and the dollar’s reputation as a safe haven investment will be quashed.  This could very well happen before 2012 is over.

QE3 on the way.

Here is the bottom line; U.S. growth is a theater of shadows.  There has been no progress, no recovery, only the misrepresentation of statistics.  Millions of Americans have fallen off unemployment rolls because they have been jobless for too long, which lowers the unemployment rate, but does not change the fact that they are still without work.  Durable goods orders are dropping like an avalanche.  U.S. credit has been lowered yet again by rating agency Egan-Jones.  With China making bilateral trade deals in numerous countries on the condition that the dollar be dropped as the primary purchasing mechanism, and with the EU turning to economic mulch, the currency’s safety is nonexistent.  Traditional investors who cling to the idea that a falling Euro spells dollar strength will be sorely disappointed when the currency is suddenly being rejected in international currency markets.

The Federal Reserve has already stated that any signs of “relapse” into recession (the recession that we never left) will be met with all options on the table, including QE3:

http://www.reuters.com/article/2012/04/12/us-usa-fed-idUSBRE83B1KD20120412

I believe that QE3 will probably be announced this year (due in large part to trauma from Europe), and, that this will trigger a mass movement by foreign nations to drop the dollar as the world reserve.  QE3 will be the straw that broke the camel.

…..

The Fed will respond to the lack of treasury purchases by ramping up fiat printing in order to cover the ever increasing costs of the government machine.  The Greenback will immediately lose a large portion of its value, at least in terms of imported goods, causing inflation in prices.  Oil and energy prices will skyrocket if OPEC follows suit (which they will, though the Saudis may still honor dollars for a time).  Doing any traditional business will become nearly impossible, and price inflation will dominate the lives and the minds of average unprepared citizens.            

The amount of time that it will take for these difficulties to unfold is also not clear.  We are operating in uncharted territory, and dealing with a collapse scenario on a truly planetary scale.  My best advice is to assume that the avalanche will move fast.

Its finally beginning to dawn on people.

Over the past four years, I have personally seen the awakening of thousands of people that may have never had the chance if the system had gone into full spectrum breakdown right away.  The question now is, how much longer can the U.S. wobble along on one wheel?  In my view, and from the evidence I see in markets at the moment, not much longer.  It is hard to set aside any expectations that the next leg down will be easy to digest for the populace.  The reality of our predicament is starting to hit home.  All the tax return checks have been spent.  The credit cards have been maxed.  The new cars have been sold off and traded in for ghetto-mobiles.  The good jobs have been replaced with Taco Bell slavery.

Its been building up to this since 2008, but this year will be like no other.

All indicators suggest that this year will be unlike any other before.  In 2008, we saw the first trigger events for the collapse.  In 2008/2009, we saw the creation of the bailout culture, setting the stage for inflation and dollar disintegration.  In 2010, we saw the first bilateral trade deal cutting out the dollar between China and Russia, which is now the template for trade deals all over the globe.  In 2011, we saw the first downgrade of the U.S. credit rating and the crisis in the EU become epidemic.  In 2012, I see not just another difficulty to add to the mountain, but a culmination of all these detriments to produce something entirely new; a vast and subversive realignment forcing many of us to take a more aggressive stance in the fight for an economically and socially free America.

We know whats coming, its how we react to it that matters.

Financial disasters have always been a convenient catalyst for a host of even more frightening obstacles, including civil unrest, and blatant totalitarianism.  This is the cusp.  It is one of those moments that people of later generations read about in awe, and sometimes horror.  The “doom” is not in the event, but in the response.  What we make of the days approaching determines the darkness that they cast upon the future.  It is a test.  It is not something to be dreaded.  It is something to be seized upon, and dealt with, as great men and women before us have done.  At the very least, we know that it is coming.  That, in itself, could well seal our success…

 

Sweden Moves Towards Cashless Society

Another country inches toward a cashless society as cbsnews reports many in Sweden are calling for such a move. In a world of fiat money is it wise to let the bankers digitally create even more money. Fraud will be so much easier especially since its so easy to read rfid chips in credit cards. Ultimately do you want to have all your transactions easily traced? Is this open to abuse?

 

Sweden was the first European country to introduce bank notes in 1661. Now it’s come farther than most on the path toward getting rid of them.

“I can’t see why we should be printing bank notes at all anymore,” says Bjoern Ulvaeus, former member of 1970’s pop group ABBA, and a vocal proponent for a world without cash.

….

The contours of such a society are starting to take shape in this high-tech nation, frustrating those who prefer coins and bills over digital money.

In most Swedish cities, public buses don’t accept cash; tickets are prepaid or purchased with a cell phone text message. A small but growing number of businesses only take cards, and some bank offices — which make money on electronic transactions — have stopped handling cash altogether.

“There are towns where it isn’t at all possible anymore to enter a bank and use cash,” complains Curt Persson, chairman of Sweden’s National Pensioners’ Organization.

He says that’s a problem for elderly people in rural areas who don’t have credit cards or don’t know how to use them to withdraw cash.

The decline of cash is noticeable even in houses of worship, like the Carl Gustaf Church in Karlshamn, southern Sweden, where Vicar Johan Tyrberg recently installed a card reader to make it easier for worshippers to make offerings.

…….

The flip side is the risk of cybercrimes. According to the Swedish National Council for Crime Prevention the number of computerized fraud cases, including skimming, surged to nearly 20,000 in 2011 from 3,304 in 2000.

Further steps to limit cash and herd us towards cashless society have been taken by

USA, Argentina, Italy, Greece, Ireland

Germany Planning Euro Exit Since 2009

Excellent investigation from “The Slog” as usual revealed an unbelievable story if true, that Germany has been planning an exit from the euro since 2009. Some very interesting facts were uncovered and that is

Germany stop printing euro notes from 2010(plans to use up what it has)

Ordered a very large volume of plain bank note paper in 2010 and hasn’t yet used it.

Bought a printing company

A Slog investigation during the last twenty-four hours suggests that not only is the EU’s system of banknote printing open to easy abuse, Germany ordered a large consignment of plain banknote paper from its main supplier in 2010 – and printed considerably fewer euros than normal…in a eurozone where printing of euros generally was on the increase.

Following last week’s Slogpost about unauthorised printing of euros by the Bank of Greece, I received a tip-off from a Slogger in relation to companies in Europe printing euros officially – that is, on behalf of the ECB. Having followed this up, other equally disturbing things came to light: but the main finding is that it looks very likely Berlin took euro-exit seriously enough during 2010 to have the paper in readiness to convert to another currency….or revert to the Mark.

Germany’s main banknote printer Giesecke & Devrient’s annual report appears anodyne enough at first sight. But its euro-printing division saw a dip in sales during 2010…when the number of euronotes in circulation went up by seven billion. As the Annual Report notes (my italics):

‘Following exceptional growth in recent years, the Banknote business unit suffered a drop in sales of EUR 143.9 million (16.0%) to EUR 752.6 million in 2010. This largely stemmed from the Printing division. The Paper division benefited from healthy business volumes on a par with the previous year….’

So the plain paper sales remained buoyant, but euronote volume fell 16% in a  sector that grew by around 4%. I have since ascertained that a substantial proportion of the plain banknote paper was ordered by the BundesRepublik. The great majority of  Germany’s euro stock is printed by G&D.

This suggests that Berlin is sitting on a huge stock of unprinted banknote quality paper….and has reduced the amount of its existing euros in circulation.

Germany has secured its own nationalized bank note printing company

Further, the Berlin government has another supplier, the Bundesdruckerei. It expanded into multiple security-related fields after being privatised in 2000; but then, during late 2008/ early 2009 – following Lehman’s demise and shortly after ClubMed’s problems became apparent – it was quietly renationalised. The official line was that this was done ‘to protect security policy interests’, but highly notable is the fact that the German government gazumped Giesicke & Devrient to secure control of the Bundesdruckerei. G&D complained to the media that it ‘had made a bid for Bundesdruckerei, and offered a very fair price’. But clearly, Angela Merkel did not want all her note-printing facilities to be in private hands. She is, after all, very keen on secrecy and control…having started life in the DDR.

If the ECB knew of Germany’s plans, it might explain the goings on at board level.

Last November the Max Keiser site focused on ECB reform as the thing most likely to evoke a German departure from the ezone. Since then, ECB boss Mario Draghi has manoeuvred Board membership at the bank skilfully to reduce German influence still further.

In the same month, Chancellor  Merkel’s Christian Democratic Union party voted to allow euro states to quit the currency area, endorsing the prospect of a move not permitted under euro rules. That was a statement of intent, not the passing of a law – but it does show pretty clearly that the option is there should Berlin feel the need.

Which brings us to now and the circumstantial evidence looks damning.

Now we learn that Berlin has a banknote paper stockpile, full control over a printer based in Berlin, is running down its euro supplies, and is ken to make euro-exit easier.

 

Last year there was a story of Germany printing Deutschmarks from a former economic advisor to George W. Bush.

Recently I wrote a post of Germany being potentially on the hook for a half a trillion if things go badly wrong in the euro zone so now is a good time to pull out since then already have a ring fenced fund for their banks.

Not looking good for the euro is it?

Oil To Go Higher As $10 Trillion Printed In 2 Years

When you see the chart below its not hard to see why oil, gold and food prices are going forever higher. $10 trillion expansion (20%) increase in money supply in two years. I wouldn’t mind but I have seen any of it. My wages haven’t increased 20%, have yours? 😉 Funny how the inflation figures don’t reflect this. This begs the question, how accurate are the inflation calculations? Ireland’s Central Statistics Office just changed the way they calculated inflation this week. 

The sad thing is the global economy has gotten worse and not better. Its obviously not just helicopter Ben who is in on the act but also BOE and ECB’s LTRO. Unfortunately we have only one solution currently i.e. CTRL+P.

Source: ZeroHedge

“I Don’t Pay” Movement Has Started

The “I Don’t Pay” movement has started in Greece and spread to Spain. This is another people movement in much the same vain as the Occupy movements and looks like it will catch on.