Sunday, October 18, 2009

Weekend Edition Debt Bombs

Debt Bombs To My Left, Debt Bombs To My Right, Everywhere I See Debt Bombs

I have previously said we are in the end phase of a long term credit cycle of this fractional reserve debt based money. Presidents Lincoln and Kennedy created non-interest bearing debt free money where the government created money freely without interest. If their currencies had survived their assassinations, we would have no 12 trillion dollar national debt today and no interest payments on the same. The Federal Reserve system was created in 1913 and gave our ability to create a currency away to a privately owned bank, The Federal Reserve System. Our currency has Federal Reserve Notes emblazoned upon it and not U.S. Banknotes. I have also explained many times that our system was designed to transfer money from those of us to work to those on Wall Street who have the right to print our money.

Video: Richard Belzer saying Kennedy wanted to get rid of the FED and that's why they Exploded His Head Belzer plays a detective on Law and Order SVU. Cousin of Henry Winkler ... Was friend of George Carlin. (Notes from

Audio Broadcast: Debt Bomb One In this broadcast Webster Tarpley who just returned from Iceland has said that a call for a debt moratorium issued by one of the progressive parties in their parliament has gained momentum. They have formed a parliamentary working group with two other parties including the more conservative Independents to discuss a five year debt moratorium on both principle and interest.

These debts in question were never agreed to by the people of Iceland. Several bankers from Iceland opened banks in England and when they collapsed Prime Minister Gordon Brown said the people of Iceland had to pay billions of dollars. The total amount owed is equal to the national output. This is a debt that cannot be paid. At some point a debt moratorium will have to be declared and this will spread to other countries very quickly. England, Holland, Germany and Austria will also have to declare bankruptcy.

Video: Debt Bomb Two - Michael Hudson reveals the advice he gave Latvia When the Latvians won their independence from the Soviet Union, they turned to Sweden, Germany and the European Union. Michael Hudson was head of a Committee of Experts who officially advised the Prime Minister who has already announced the first phase. Following Hudson's advice he said they would copy American mortgage bankruptcy law which limits the debt owed by the borrowers to the current value of the house. It is called jingle mail in American slang. You mail the keys to the bank, they take possession and sell your old home and cancel the remainder of your debts sending you through bankruptcy.

The Swedish banks want the Latvians to pay the complete principle and interest on their homes even though their homes have dropped 75% in value since last year. The Latvian GDP has declined 18.7% and their unemployment has risen to 18.3%.

The IMF and EU demand they sell or close half of all schools and hospitals and to also lay off half of all police officers. They have also been told to cut public employee wages by 40%. The EU also told the Latvians that they should close down their agriculture and textile industries so the Europeans can export food and clothes to them from EU surpluses.

Michael Hudson told the Latvians to take this fallback position. Print up a lot of their currency, the Latvian Lats, and use them to pay all foreign debts. If this happened, Swedish banks would die overnight. Other countries would follow the Latvians and within a week we would see major countries defaulting on their debts. We would see a Depression far worse than 1929.

Audio: Debt Bomb Three - Predictable World Crisis in January 2010 Max Keiser and Stacy Herbert talked about the increase of the number of home foreclosures from 2.5 million to 3.5 million. They also said the banks have a lot of delinquent home loans. Some people have not made any payments for up to eighteen months. I heard some months ago that only one third of bad mortgages have been sent into foreclosure.

Max said the banks did not send these loans into foreclosure because they wanted to convert their Bailout loot into bonuses. Sometime in January of 2010 Max expects the banks to foreclose on enough homes to create another crisis. Stacy pointed out that a lot of these bad mortgages have been bought by the Federal Reserve and Ben Bernanke cannot show up to foreclose on your house. That will reveal the game is over. Max said the bankers will go to Washington in 2010 and try to get ten or twenty trillion dollars in Bailouts so they can have another around of bonuses.

Max speculated that the White House and the Congress will be so unpopular that they will create a virtual White House where the House and the Senate can vote over the web from secured walled communities in the south of France or elsewhere. It will be too dangerous for them to actually set foot inside the US. As I have said before, Americans have been buying 50,000,000 bullets a day for a year for a reason.

Max talked about corporate insiders selling their stock. He said governments and Hedge funds are buying gold. Max asked the question: At what price will envy drive most Americans to buy gold? Max and Stacy said the price would be $2,000 before the general public buys. Max said he expects the price of gold to go to $1,250 without a major correction. Few Americans own gold, When the general public owns gold, the price will go from $2,000 to $3,000 or $4,000. He said expects the shoe shine man to show us his gold coin he bought yesterday at $4,000 from Jim Rogers and it has already gone to $4,020. He will think he is getting rich.

The key point here is that the banks have trillions upon trillions of dollars in toxic debts they will reveal to us early next year. The Congress is talking about a Second Stimulus bill of two with a 2 trillion price tag at a time when tax collections are dropping like a rock.

Nobody is going to loan us that money. The Federal Reserve will print trillions of dollars and the IMF will come to us as they did to Latvia. Cut Social Security and Medicare in half. Sell or close half of your schools, parks, hospitals, sewers and water systems.

Debt Bomb Number Four Video: Trading Bombs The stocks of Bear Stearns, Lehman Brothers and the Royal Bank of Scotland were shorted by naked selling of millions of shares immediately prior to their collapse. If these trading bomb attacks continue, we could lose some more key international companies. Bankers do not make things and grow food. All Wall Street knows how to do is to set of trading bombs to make money. Consider this alarming recent news from England: Lloyds short-selling doubles as traders predict share collapse

Debt Bomb Number Five. In 2003 John Williams of said that if the federal government used Generally Accepted Accounting Principles (GAAP)we would have to set aside money today sufficient to meet future obligations. If we did that and raised our tax rate to 100% of everyone's income with no exemptions, Williams said we would still not raise enough money to balance our budget.

Look at the evidence of this case Returning from China last month, U.S. Congressman Mark Kirk told Fox News China is beginning to cancel Congress's credit card. This $17 Trillion Divorce Won’t Be a Pretty One:

Any unpayable debt is a Debt Bomb. When, not if, the Debt Bomb explodes, the bankers will attempt to send America into a fire sale receivership where all of our public, assets, such as, schools, parks, roads, water, sewers and hospitals will be sold to Wall Street and foreign corporations. That is their dream and our nightmare.

THAT WILL NOT WORK IN AMERICA. We have nuclear weapons and we have the most heavily armed citizenry in the history of the world. Plus we have a history of rebellion. And we have the Internet. I have heard many discussions of late that we should just pay taxes to our state governments and not send any money at all to Washington. We would void the national debt. I would prefer to look at the owners of the national debt and create money sufficient to pay some of the individuals and pension funds.

Video: Too Many Loopholes in Financial Reform 10/16/09

Video: The Firm of Goldman, Sachs, and, SEC For some reason this man uses strong language to denounce the SEC for hiring a 29 year-old Goldman Sachs executive to become their COO.

EXCLUSIVE: Obama loosens missile technology controls to China America is a debtor nation. We have to give China all of our nuclear secrets. It won't be long before we sell them our women. I have in the past shared my calculation that the Chinese need 200,000,000 women to make up for the deficit in their female population due to their one child policy.

Barney Frank's Bad Loans Many of the loans the F.H.A. insured in 2007 and last year are now turning delinquent, agency officials acknowledge. The loans made in those two years are performing “far worse” than newer loans, dragging down the whole portfolio, Mr. Stevens of the F.H.A. said in an interview. The number of F.H.A. mortgage holders in default is 410,916, up 76 percent from a year ago, when 232,864 were in default, according to agency data.

Video: Madeleine Albright confronted on Bilderberg & New World Order Crimes

Geithner, Summers, Bair on Wall Street Treasury Secretary Timothy Geithner delivered this eye-brow-raising comment: “We’ve got unsustainable deficits over a five- to 10-year window.” ... The US government, however, owns stakes in about 600 banks, two car companies, has effectively nationalized an insurance conglomerate, AIG, and has nationalized housing finance giants Fannie Mae and Freddie Mac, both of which have combined balance sheets veering toward half the GDP of the US, once off balance sheet items are included ... At the same time, the Federal Reserve is propping up the mortgage and consumer borrowing markets in an effort to keep rates low with massive purchases of debt securities. Estimates show that the Fed is on track to own 17% of the $10.4 tn market for mortgage debt securities, Treasury debt, and debt issued by Fannie and Freddie ... Top economist Stephen Roach, now chairman of Morgan Stanley Asia said, “there is no exit strategy” ... “we’re stuck” in a hamster wheel of “bubbles perpetuating bubbles”

LatAm leftists tackle dollar with new currency

WSJ: Capital Drain Promises More Pain for Dollar

76 days since request for more troops, Obama accused of stalling Senator Robert Byrd, at 91 a Democratic institution, was so incensed that he dragged himself from his hospital bed last week to make a 13-minute speech. “Does it really take 100,000 troops to find Osama Bin Laden?” he wondered. “And how much will this cost? How much in terms of more dollars? How much in terms of American blood?” ... Obama also respects the views of General James Jones, the national security adviser, for his on-the-ground experience of Afghanistan from 2003 to 2006, when he was Nato’s supreme allied commander for Europe. He is said to be wary of sending more men. “Afghanistan is a country that’s quite large and swallows up a lot of people,” he said recently. General James Jones is a Bilderberger.

$2.3 million in federal stimulus money is going to pay for Tampa Bay area beauty school (and massage school) tuition

Crisis looms in Kabul over Karzai election results The US fears that without a second round of voting leading to a clear result, the legitimacy of Karzai's presidency would be open to question ... "I (Hillary Clinton) think the ballots have been printed and certainly the military, through Nato and through our own troops, is looking at how you would secure such a second round."

Video: RedNeckRap Otto - Kansas Lawmaker Reposts Controversial ‘RedNeckRap’ With New Intro

Arizona . sheriff launches immigration sweep "I am the elected sheriff. I don't take orders from the federal government."

Wealthy U.S. Shoppers Boost Spending 29%, Survey Says

American Idol Star (Paula Abdul) Lights Shabbos Candles So who knew Paula Abdul is Jewish. I understand she is on some other show now.

State Revenue Falls Most Since 1963 on Incomes, Sales A critic said that US Treasury receipts are continuing to decline so this disproves the false claims of a recovery.

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