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Showing posts with label currency collapse. Show all posts
Showing posts with label currency collapse. Show all posts

Thursday, January 15, 2015

What In The World Just Happened In Switzerland?


Michael Snyder

Central banks lie.  That is what they do.  Not too long ago, the Swiss National Bank promised that it would defend the euro/Swiss franc currency peg with the “utmost determination”.  But on Thursday, the central bank shocked the financial world by abruptly abandoning it.

More than three years ago, the Swiss National Bank announced that it would not allow the Swiss franc to fall below 1.20 to the euro, and it has spent a mountain of money defending that peg.  But now that it looks like the EU is going to launch a very robust quantitative easing program, the Swiss National Bank has thrown in the towel.  It was simply going to cost way too much to continue to defend the currency floor.

So now there is panic all over Europe.

Saturday, May 28, 2011

Japan shows how to defuse debt time-bomb

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Ellen Brown
Asia Times

"Threatening to default should not be a partisan issue. In view of all the hazards it entails, one wonders why any responsible person would even flirt with the idea." -- Alan S Blinder, Princeton professor of economics, former vice chairman of the Federal Reserve.

A game of Russian roulette is being played with the national debt ceiling. Fire the wrong chamber of the gun, and the result could be the second Great Depression.

Saturday, April 23, 2011

How to Start Your Own Private Currency

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It's not as complicated as it sounds. You can "back" it with gold, or mimic an I.O.U. for one hour's worth of work. All you need is a system other people can understand and, most importantly, trust.

Alternative currency Berkshares
Derek Thompson
The Atlantic

Here's a nightmare scenario shared by some mainstream investors, goldbugs and Ron Paul devotees: The year is 2013. Inflation has the U.S. economy in a stranglehold. International investors are fleeing to the far corners of the globe. The dollar is in a free fall, and Americans are scurrying to protect their wealth. What do you do?

Start your own currency.

It sounds complicated, but really it's as simple as three steps. First, amass a bank of stuff. Let's say gold. Second, decide on a sensible unit for your new currency. Let's say one "Derek Dollar" token is worth a gram of gold. Third, convince a critical mass of people to use it so that "Derek Dollars" are redeemable not just within my group of friends, but among shops and merchants around the world. Voila, we've got our own private currency.

No gold? No problem. The easiest way to start a currency is to draw up an I.O.U. system that allows your friends to trade hours of work. Hundreds of shops in Ithaca, NY, accept "Ithaca HOURs," a local currency backed, not by gold, but by man-hours. I spend an hour mowing an Ithaca lawn and receive a paper note for one HOUR. I walk to the barber's, hand him the piece of paper, and he cuts my hair. Now my neighbor's grass is shorter, my hair is kempt, and my barber is one HOUR richer. And it's all thanks to transactions that might not have happened were it not for a private currency.

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RELATED ARTICLES:
Monetary Reform Begins with Competing Currencies
The After-the-Fed Solutions Debate Begins



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Saturday, November 27, 2010

Iceland Better Off Than Ireland Because They Let Big Private Banks Fail, says President

Iceland Recovering
Jonas Bergman and Omar R. Valdimarsson
Bloomberg

Iceland’s President Olafur R. Grimsson said his country is better off than Ireland thanks to the government’s decision to allow the banks to fail two years ago and because the krona could be devalued.

“The difference is that in Iceland we allowed the banks to fail,” Grimsson said in an interview with Bloomberg Television’s Mark Barton today. “These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks.”


Ireland’s Prime Minister Brian Cowen said this week his government has discussed an 85 billion-euro ($112 billion) bailout with the European Union and International Monetary Fund after the country’s banks threatened to bring the euro member to the brink of bankruptcy. Iceland’s banks, which still owe creditors about $85 billion, were split to create domestic units needed to keep the financial system running, while foreign liabilities remained within the failed lenders.

As a consequence, “Iceland is faring much better than anybody expected,” Grimsson said. The Icelandic state’s liability on foreign depositor claims stemming from Icesave accounts at failed Landsbanki Islands hf should be put to a national referendum, he said.

“How far can we ask ordinary people -- farmers and fishermen and teachers and doctors and nurses -- to shoulder the responsibility of failed private banks,” said Grimsson. “That question, which has been at the core of the Icesave issue, will now be the burning issue in many European countries.”

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Friday, November 5, 2010

Bank Holiday Rumors Swirl Amidst Currency Crisis

Fed’s “mad experiment” in dollar debasement stokes fresh jitters

Paul Joseph Watson
Prison Planet

With the world on the verge of a currency war as the Federal Reserve follows through on its dollar-killing quantitative easing program, rumors are once again swirling of a “bank holiday,” during which US citizens will be prevented from withdrawing money or at least limited in the amount of the withdrawal they can make.

The bank holiday is rumored to be set for next week, with Tuesday November 11 pinpointed as the likeliest date.


According to radio host Steve Quayle, a pastor was told by one of the managers of a prominent east coast bank that banks would close for an undetermined amount of time, and that when they reopened, “all withdrawals by checks would be limited to $500 per week – no matter what the balance in the account is.”

Limiting the amount of money customers can withdraw or blocking the facility altogether reminds us of a Citigroup advisory that was sent to customers at the start of the yearwhich stated that the bank reserved “the right to require (7) days advance notice before permitting a withdrawal from all checking accounts.” The story stoked fears that financial institutuions were preparing for bank runs.

On his website, Quayle asks, “When in U.S. History has a sitting President taken off on an overseas trip for an extended period of time, with 65 airplanes, 34 warships reportedly 3,000 people including his friends and cohorts, at the pinnacle of an economic and political upheaval?”

Fears of a bank holiday first arose in June of last year, when it was rumored that banks would close their doors in early September. Concern was fueled by reports that US embassies in foreign countries were purchasing large quantities of local currency.

With Brazil and other countries now threatening to take drastic currency measures to protect themselves against a dollar crisis, a similar financial environment is stoking identical fears.

Bank holidays are not without precedent in the United States. On March 5 1933, newly elected Franklin Roosevelt declared a “bank holiday” that lasted four days, during which he rammed through the Emergency Banking Act which granted FDR near dictatorial control over the dealings of banks. The Act also forced every citizen and business in the country to relinquish their gold in exchange for paper currency.

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Tuesday, October 12, 2010

Currency Wars: The Phantom Financial Menace

AgentOgden Illustration
Giordano Bruno
NeitherCorp Press

War, almost every kind of war, is first and foremost a production. A piece of live-action theater with “good guys” and “bad guys” delineated by governments and by media for the benefit of the masses. Most plot-points in most modern conflicts are not genuine. They are written and staged (Gulf of Tonkin, or WMD’s in Iraq anyone?), though we treat the fairytale as if it were reality simply because the story is being told by some corporate mouthpiece wearing a fake smile and a suit on our TV. Very often, we discover after the fact that the wars we witnessed in the dark shadows of our cultural cinema with greasy popcorn and mega-large soda in hand were actually a charade, a farce. We get angry, we get livid, and then we go on with our menial lives because the “damage is done” and what can we do about it now anyway? Very rarely in history do the majority of people have the ability or occasion to see the authentic war going on right in front of their eyes, between the social puppeteers, and those who have broken loose from their strings.

Today, we as Americans have a rare opportunity to step outside the theater, away from the fabricated pageantry of a particular conflict barreling down the horizon, and examine the situation objectively before it fully develops. That conflict is the now increasingly aggressive “global currency war” being readied for implementation and public consumption at this very moment.


For now, the threat of a large scale currency fight is being presented as “minimal” but potentially relevant. In fact, the war has been slowly taking root since at least 2008, right after the initial collapse of the mortgage derivatives bubble when the private Federal Reserve lowered interest rates to near zero and began openly purchasing U.S. Treasury debt. Only this past month has the MSM finally begun discussing the wider implications of these measures, along with the obvious reactions of other nations, including the escalation of trade wars into a full fledged fiat battle royale. But all is not what it seems…

As I hope to demonstrate clearly in this article, not only is the currency war threat utterly unnecessary, irrational, and fiscally pointless, it is also completely engineered to serve a purpose beyond the policy directives of any one sovereign nation, and meant to benefit only a small handful of financial elite…

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Sunday, October 10, 2010

10 Signs The U.S. is Becoming a Third World Country

Activist Post

The United States by every measure is hanging on by a thread to its First World status.  Saddled by debt, engaged in wars on multiple fronts with a rising police state at home, declining economic productivity, and wild currency fluctuations all threaten America's future.

The general designations of the ranking system for world status date back to the 1950s, and have included countries at various stages of economic development.  Since the Cold War, the definition has come to be synonymous with repressive countries where a wealthy class of ruling elites segment society into the haves and have-nots, many times capitalizing on the conditions that follow an economic crisis or war. 

While much of the world is still mired in poverty, the reduced cost of innovative tools such ascomputing and connectivity ironically puts traditional Third World countries at the forefront of a new lean-and-mean economy that is based on ideas of empowerment for the disenfranchised.   For better or worse, the world is leveling due to Globalism.  However, America and other over-leveraged countries face this re-balancing of the globe at a time when they have dwindling resources. We can speculate about who and what is to blame for America's fantastic fall, but for the purposes of this article we shall focus on the obvious signs that the United States is beginning to resemble a Third World country.


30,000 Section 8 wait for 455 vouchers
1. Rising unemployment and poverty: Unemployment numbers, food stamps, and home foreclosures continue to reach new record highs.  The ugly reality of those numbers was recently on display when 30,000 people showed up to apply for public housing in East Point, GA for 455 available vouchers.  Fights broke out, people were fainting from the heat while in line, and riot police showed up to handle the angry poor.

2. Economic dependence: The United States finished 2009 with a debt-to-GDP ratio of 85%, according to the International Monetary Fund (IMF).  The current trend projects the United States to finish 2010 at 94% and 2011 at 98%.  The 90% level has become the IMF's make-or-break point for countries hoping to grow their way out of debt. If the government debt load climbs above 90% of GDP, economic growth slows so much that growth is no longer a viable solution for reducing that debt, and the IMF insists on austerity measures. Surpassing this debt threshold has also caused China's lead credit rating agency to cut America's credit rating.


3. Declining civil rights:  Everyday freedoms are often a casualty of a society in collapse.  As the anger of the populace mounts in response to declining economic conditions and political corruption, the government counters by increasing draconian measures that restrict the political rights and civil liberties of its citizens.

America is becoming a country like China, which has one of the lowest scores according to Freedom House.  In America, private discussions and movements are monitored, free speech is corralled, the freedom to assemble for protest is by government decree, and independent thought that questions the political system is increasingly looked upon with suspicion.  A final indicator is when the government insists upon secrecy for its own actions, while new laws and systems are created to put the individual under nearly constant surveillance.

4. Increasing political corruption: When political corruption becomes the accepted norm, as opposed to the exception, then there's a good bet your country resembles the Third World. Congress and all major institutions face a growing crisis in confidence, where a record-low 11% of the population believe Congress is doing a good job. It now seems obvious to all observers that big corporations directly control the agenda in Washington -- much like typically corrupt Third World countries.

5. Military patrolling the streets: The rise of a militarized police state is a hallmark of most Third World countries, particularly in times of rapid economic collapse.  America's declaration of the War on Terror has created a constant threat to National Security that has allowed for themilitary to be deployed on American soil.  Building upon the War on Drugs, this has created a fusion between the military and local police, where military-grade weapons and tactics are being used against American citizens in a cascade of violent confrontations over non-violent offenses.  Militarycheckpoints are moving farther inland, away from meaningful border control functions, and a full-blown military presence in American cities has been planned by the U.S. Army War College.

6. Failing infrastructure:  As 46 of 50 states are on the verge of bankruptcy, cities are going dark, asphalt roads are returning to the stone age, and nationwide budget cuts are leaving students without teachers, supplies, or a full-time education.  These are common features one will see as they travel through the poorest of Third World countries.

7. Disappearing middle class: During the last presidential debate season, they argued that a family income of $250K was solidly middle-class.  Well, Census data shows less than 15% of families make over $100K, and only 1.5% of families make over $250K.  The income gap between the rich and poor has increased at a staggering pace, while many more middle-class folks join the ranks of the poor every day.  Cavernous income gaps may be what Third-World nations are best known for.

U.S. Dollar Monetary Base
8. Devalued currency: The value of the Federal Reserve Note (U.S. dollar) hasdeclined 96% since the inception of the Federal Reserve in 1913.  The value of the dollar is based on its supply in circulation and, to a lesser extent, the demand for those dollars. For the last three years, the monetary base has spiked literally off the charts. It can be argued that the dollar has become America's top export as the world's reserve currency, and if the volatile dollar is scrapped, which the U.N. and IMF now suggest, then demand will plummet, killing the currency.

9. Controlling the media: A government-influenced media that censors information is a key component of Third World countries.  In some countries it is openly owned by the State.  In America, privately-owned major media is not as balanced or as diverse as it seems; the concentration of ownership has led to censorship when national and corporate interests have sometimes overlapped.  The persecution of high-profile investigative journalists such as WikiLeaks is set amid a backdrop of the proposed Internet censorship of bloggers who wish to remain anonymous.  The end of net neutrality creates a pay-to-play system that can lead to further corporate and government control of information and opinion.  Cybersecurity initiatives are the final nail in the coffin, as the entire free flow of information can be vetted in a China-style system of "identity management."  On the street, the police state and media control have converged in the recent rise of arrests for those who videotape the police.  This is a huge blow to First Amendment rights and the role of photojournalists who wish to document public police behavior.


10. Capital Controls: Many nations have enforced capital controls as their economies collapse.   It most recently happened in Argentina and Venezuela as they sought to keep the remaining wealth within their borders. The SEC already has adopted policies to allow money market funds to suspend withdrawals during a financial crisis, while the recent HIRE bill (HR 2487) puts restrictions on Americans moving capital to foreign countries. Some economists suggest that the national debt has gotten so high that the government must now force investment of private capital into U.S. Treasury debt.

Key economic indicators point to a situation potentially worse than the Great Depression. The land of opportunity for so many is devolving into a system of government corruption, corporate looting, and military rule that threatens to sink the American Dream.  The capital flight from America has left a dwindling middle class holding an empty bag.  This style of underinvestment in the foundation of society is similar to what already has led to the exodus from the rural Midwest.  Now, there are ominous signs of a silent exodus of young, intelligent professionals seeking opportunities to realize their dreams outside of America; they are becoming known as Generation Xpat.  Lastly, many skilled immigrants have returned to their home countries to seek a better quality of life, which might be the scariest indicator of all.

Related Activist Post Articles:
Dare to Prepare: Collapse of Civilization Now Guaranteed
Capital Controls: The Final Phase in the Great Looting of America
The Ultimate Betrayal: Police and Military Working Together to Oppress Americans
10 Ways We're Being Tracked, Traced, and Databased


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