Category Archives: Monetary system

Where does money come from?

Jonathan Moylan avoids jail

 

Jono csg meme

http://www.smh.com.au/nsw/jonathan-moylan-avoids-jail-term-for-fake-anz-media-release-about-whitehaven-coal-20140725-zwwe7.html

 

Ok now, memes and MSM bullshit aside, did Jonathon Moylan do all that much damage to (ASX WHC) Whitehaven coal  ?

 

whitehaven analysisNot as much as you might think, WHC had been on the slide for 3 quarters before the ANZ corporate hoax. Investors dumping WHC in the previous 3 quarters had done more damage to WHC than Moylan. So effectively what Jono had done was arrive in time to see the rich obnoxious WHC house being burnt down by an angry mob and kicking in the letterbox while being cheered on the crowd of disenchanted. Of course a serious analysis might show this up but when you are underscoring the dangers of fracking (AKA CSG  AKA coal seam gas), But why let to many facts get in the way of good publicity. WHC had been under preforming the ASX 200 for several years, the business cycle, carbon tax, but even this being said its really hard to know how much damage a single well crafted rumor can do.

We are after all talking about Keynesian economics, with adherents who believe you can print fake money to appease animal spirits, which then magically repair an economy.

I couldn’t resist and it’s friday, for the tinfoilers out there, this video is from 1984, spooky.

For the OM hard core: which eviction was this song played at?

End The Fed Rallies Are Spreading Like Wildfire

 Starting in Berlin about two  months  ago, huge Anti-war and   End the Fed rallies have begun to spread all over Germany and the rest of Europe.
The protesters consider the corrupt banking system the chief problem in the world today.
At it’s core, the Occupy Movement also had the anti-fed and fiat currency protests, but often activists who brought up these subjects were and are dismissed as right-wing conspiracy freaks by the socialist element that tried to hi-jack the occupy movement. Looks like the tide may be turning.
In Australia we currently have a lot of people protesting the budget and the latest government, but very few seem to understand the global connection. Time to wake up!

Submitted by Mike Krieger of Liberty Blitzkrieg blog:

This is a fascinating development and one that I had no idea was happening until today. It seems that rallies are spreading throughout Germany protesting the corrupt and dying global status quo. One of the key targets of these groups is the U.S. Federal Reserve system, which as I and many others have maintained, is the core cancer infecting the entire planet.
According to the organizer of these rallies, they have now spread to up to 100 cities and have a combined attendee base of around 20,000. What is also interesting, is that the mainstream media in Germany is calling them Nazis. In Germany, if you don’t support Central Banking, this apparently means you are a Nazi. What a joke. Just more proof mainstream media everywhere is complete and total propaganda. It is also a good sign, since it shows the desperate lengths to which the power structure will go to keep their criminal ponzi alive.

Do these folks seem like Nazis to you?

 

Commonwealth bank $100M loans Ponzi

They said it wasn’t happening here, it didn’t happen here. The truth was it was better covered up here.

And while Victoria Police corporation worked so hard to shut down Occupy Melbourne as a street protest the very reason we were protesting the dirty frauds committed by banks, Victoria Police corporation were investigating this fraud.

The bank heres received secret bail outs, and at least one bank has  been involved in propping up a Ponzi scheme and snatching the victims houses.

Worst of all was CBA (Commonwealth bank of Australia’s) response to the scam, get on board and  side with the scammer to steal the house.

the story by:

Chris Vedelago and Cameron Houston

http://www.theage.com.au/national/cba-ignored-evidence-of-100m-fraud-20140621-zsh6i.html

Australia 2014 copies New Zealand 1984

Guess what Australia, you are 30 years behind New Zealand!

A wave of shocked silence followed by jeers echos across the country…

Australians all angrily ask “What are we behind in?”

“Apart from Rugby Union and occasionally Netball we are not behind New Zealand!”

Only if it was so unimportant as sport, you might see whats really going on. You have been blinded by bread and circuses, or perhaps beer and footy.

Split Enz, from New Zealand in 1981, with a song written by Neil Finn, unfortunately history does repeat.

 

New Zealand, for decades, has been a social policy test tube for the western world. A small, largely isolated population that reeled from the Neo- con ‘shock doctrine’ of Chicago school economists.

Even more surprising was the fact that this hard core Neo-con agenda was run by the New Zealand’s Labour party, a political outfit more or less akin to the ALP in political ideology and electoral significance.

Well it would have been akin to the ALP, if it wasn’t for a few key individuals who drew inspiration from Thatcher and Regan who were in office at the time in UK and USA respectively.

1385213727066

 

Would  you like to look into a somewhat tame version of what is happening now in Australian Politics with the Abbott/Hockey budget?

Have a glance at these somewhat surreal crystal balls, telling you a potential future for Australia from New Zealand’s troubled past.

If you do not watch these films, you only have yourself to blame when further nasty surprises happen!

 

 

http://www.nzonscreen.com/title/someone-elses-country-1996

 

Its worth pointing out that despite this film being made more than 12 years after the neo- con ravage and upheaval in NZ, it was effectively banned from NZ television until 2003, nearly 20 years after the events it portrayed. You might ask why, and that’s the exact question the New Zealand Government didn’t want its citizens asking. Citizens who were now being treated as units of economic production.

http://www.nzonscreen.com/title/in-a-land-of-plenty-2002

Another film by the same director (Alistair Barry) about the same events from a slightly different and more enlightened perspective, explores how the Reserve Bank of New Zealand was behind many of the initiatives. Curiously the director said his main inspiration for making the movies was he had so much footage that simply made him angry, and he had to understand why it make him angry, and what was actually driving the economic and social carnage witnessed.

Both of the films heavily feature television archives, which many New Zealanders would have seen as part of news broadcasts at the time of the events, some clips appear in both films because of the significant to both stories and the political history described.

 

Split Enz I walk away; 1984,  from their last album.

Perhaps Split Enz saw the (economic) writing on the wall, splitting up in 1984 and temporarily moving to Los Angeles before morphing into ‘The Mullanes’ and finally ‘Crowded House’ and moving back ‘home’ to Australia.

The opening credits of this video sadly will not put to bed any lingering debate over whether Crowded House was Kiwi band or and Aussie band, as Hester had joined Split Enz before the remainder of Split Enz became ‘Crowded House’.

The best compromise to this sometimes confused friendly debate is best settled with this: Crowded House was a Melbourne band that formed in the USA from the remains of a New Zealand band.

Welcome to the confusion and dislocation of the shock doctrine and globalization.

 

And finally Crowded House ‘Weather with you’ from 1992. When the rapacious globalist corporations come, they bring the weather (and its not good weather).

If you don’t think it can happen here, this week should have been a wake up call, Chile was taken by surprise in 1973, as was New Zealand in 1984, will Australia wake up and get wise in 2014?

 

History does repeat.

What was once a purely New Zealand phenomenon can easily become completely ingrained in Australia, be it music or political ideology.

RIP Paul Hester

 

 

Money as debt 3

 

 

Money as debt 3

A really good look at money which goes on to explain major theories of how different types money can succeed or fail.

Its worth pointing out that early on in the movie the concept of money as flow is important, this is a good explanation of  the economic concept of ‘velocity of money’.

Velocity of money  broadly speaking is the number of times (on average) a single unit of money is spent in a year. This concept may seem to be mere trivia until you realize it is very important in calculating inflation.

 

It concludes that money really is a promise to provide goods and/or services in the future, and that money is only as good as that promise.

Maxcoin pumped and then dumped

The first month of max coin, all the hallmarks of classic pump and dump. Data from Cryptsy, one of the larger exchanges.

The first month of max coin, all the hallmarks of classic pump and dump. Data from Bter, one of the larger exchanges.

A friend called me just over a month ago telling me about Maxcoin, the new Max Keiser endorsed crypto currency. I said I do some research and let him know if it was wort thinking about or investing in.

Yes it really was the new Max Keiser endoresed cytpto currency, he previously endorsed the copper lark, which you probably haven’t heard of because it was a pump and dump scheme, and few people still take it seriously.

This fact alone was warning enough, there were some rumors that the SHA-3 algorithm has NSA back doors in it, but I was out at pump and dump.

Then came the famously botched launch, a huge pump and dump and then, living in denial for the next month, thinking eventually the price will spike like it did in the early days (not realizing that was pure market manipulation). And then a flood of articles pronouncing it dead and buried, told ya so.

Currently a max is worth 1/1500th of a bit coin and the value is steadily dropping, completely defeating the entire point of a crypto currency.

MtGox Declares bankruptcy becoming MtGotcha

Image.ashxMark Karpeles the CEO of MtGox  filed for bankruptcy in Japan where MtGox is based.

Originally a site for trading Magic the Gathering (MTG) cards, Karpeles purchased the exchange shortly after it was converted to a Bitcoin trading site. MtGox under the ownership of Karpeles became the largest Bitcoin Exchange in the world handling 70% of Bitcoin trades.

For more than six months there have been complaints of extraordinary delays in cash payment for bitcoin on the exchange. This fueled rumors leading many to believe there were no actual funds available, and that the site was manipulating the price of Bitcoin and taking large speculative positions rather than simply being a exchange fee collector.

On 24 February 2014 MtGox announced it had lost 744 thousand Bitcoins due to previously undetected frauds. This would be worth 372 million dollars, 16 times the value of the company, its unlikely that such a large fraud would go undetected for such a long time in a highly computerized business with only 10 employees. MtGox’s problems have been known internally for some time and exacerbated to damage to the Bitcoin community by trading while insolvent for some time. It seems highly likely this was a deliberate fraud by one or more insiders.

More than 100,000 people have been left with a loss by dealing with MtGox 90% of them outside Japan.

So MtGox is gone and has left a massive dollar hole in the Bitcoin market, which all goes to show centralized control of a currency is the real problem.

http://www.theguardian.com/technology/2014/feb/28/bitcoin-mtgox-bankruptcy-japan

Dogecoins value and trade volume have been unaffected by the controversy reported a Shiba Inu spokesman.

1% bankers mock us at secret party

a_560x375An incredible story from Kevin Roose

some excerpts from the story

Recently, our nation’s financial chieftains have been feeling a little unloved. Venture capitalists are comparing the persecution of the rich to the plight of Jews at Kristallnacht, Wall Street titans are saying that they’re sick of being beaten up, and this week, a billionaire investor, Wilbur Ross, proclaimed that “the 1 percent is being picked on for political reasons.”

Ross’s statement seemed particularly odd, because two years ago, I met Ross at an event that might single-handedly explain why the rest of the country still hates financial tycoons – the annual black-tie induction ceremony of a secret Wall Street fraternity called Kappa Beta Phi.

“I believe that God has a plan for all of us. I believe my plan involves a seven-figure bonus.”

 

The first and most obvious conclusion was that the upper ranks of finance are composed of people who have completely divorced themselves from reality. No self-aware and socially conscious Wall Street executive would have agreed to be part of a group whose tacit mission is to make light of the financial sector’s foibles. Not when those foibles had resulted in real harm to millions of people in the form of foreclosures, wrecked 401(k)s, and a devastating unemployment crisis.

The second thing I realized was that Kappa Beta Phi was, in large part, a fear-based organization. Here were executives who had strong ideas about politics, society, and the work of their colleagues, but who would never have the courage to voice those opinions in a public setting. Their cowardice had reduced them to sniping at their perceived enemies in the form of satirical songs and sketches, among only those people who had been handpicked to share their view of the world. And the idea of a reporter making those views public had caused them to throw a mass temper tantrum.

http://nymag.com/daily/intelligencer/2014/02/i-crashed-a-wall-street-secret-society.html

 

http://nymag.com/daily/intelligencer/2014/02/revealed-members-of-kappa-beta-phi.html

 

“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public.”
– Adam Smith

The wolf of wall street: review

The somewhat autobiographical story of Jordan Belfort and Stratton Oakmont.

The story of Jordan Belfort is closely but not exactly told in ‘wolf of wall street’. Some names and facts have been changed to protect the less guilty. In the film he alludes to what Lehman brothers and other now infamous investment/banking houses were doing with derivatives ten years before it became topical (and disastrous).

Having just Acquired his stock brokers license Jordan Belfort begins working at L.F. Rothschild as a stockbroker on wall street. Two problems: 1) This Rothschild is not related to the ultra moneyed European Rothschilds, and 2) the 1987 stock market crash occurred on his first day and he looses his job with he collapse of the company he worked for.

The circus

Jordan then stumbles into penny stocks and realizes with his license to sell blue chip stocks he can then induce the much bigger market into far riskier and stock broker lucrative penny stocks. But along the way Jordan attracts a band of merciless hustlers that become his boiler room. The film Boiler room is also about this con game. If this wasn’t enough there we the drugs, The drugs were cocaine, Quaaludes and almost anything they could get their hands on, prescription or not.
A bunch of small time drug dealers/dabblers hustle their way to the top, their modus operandi is essentially no different to the larger game. Agressive con men fueled by drugs and excess in a massive ponzi scheme, what could go wrong? The creation of an artificial empire of hookers, drugs and a charismatic cult leader imploring and mentoring his followers to rake in more mammon (money). Some of the editing in the movie even shows blatant continuity errors when Jordan is wasted on drugs. The rolling down the country club stairs to get to his car is an example, though the car damage is more obvious.

Its a fugazi

The money that goes into the market stays in the market. The pyramid is not build if people start removing the blocks. Just like removing a block from the corner of a pyramids base can collapse the whole pyramid. So if you are skilled enough to get people to invest in the first place, be skilled enough to make them keep their money in the game. All the money is fake once it enters the system, destined to never be seen again by investors.

Think about it, if the broker takes a 50% commission on the sale of $1000 of stocks the clients investment has lost 50% on day 1. The stock has to reach to more than $2000 just for the client to break even. Where exactly does the money to pay investors come from? from the fugazi vortex? No, any possible gains are then plowed back into the vortex of imaginary money. So for a penny stock investor to make money their stock price must reach more than 201% of their purchase price. While some penny stocks can do this they are rare, especially when you consider that most of the stock were subject to price manipulation in a classic pump and dump system.

A fire in the side show can spread to the big-top.

Regulators really don’t care for the victims of these frauds, they just want to make sure a few operators don’t threaten the faith in larger ponzi game (con) of money printing and taxation. Its salient point that Belfort served 22 months of a 4 year sentence for frauds totaling 110 million dollars. A small penalty for stealing the life savings of thousands of people He was forced to pay back about 10 million which mostly came from the sale of his house leaving the question open, where did the other 100 million go? Remember the guy was using a variety of money laundering systems.

22 months imprisoned for stealing 110 Million dollars from his clients, that equates one month in prison for stealing 5 million dollars.

Would you be willing to steal 5 million dollars if you punishment was only 1 month in prison and there is a good chance you were able to hide a great deal of the money and have it waiting for you secretly once you were freed?

The state is less concerned when you steal from the citizenry than when you steal from the state.
The state also punishes small thefts so much more harshly than large thefts. Recall the scene where the butler has an orgy at Jordan’s apartment and his money and jewelery is stolen. Oh the horror that some one might steal from him in a day, the amount that he might steal in a minute.

So what happens when everyone decides to go home?

The financial circus was never mean to close, it was a designed as a 24/7 365 day operation with a sucker born every minute. Unfortunately the circus became so big that it altered the town. The wars it funded eventually created a population bubble. Soon the bubble in population had fewer children than before and so did those children. Soon there were less suckers born and more wise to the game and lived long enough to collect on the bets. It was known in financial circles that 2007-2009 would be a very difficult time for markets, as the baby boomers would begin to retire and their vast proportion of the worlds wealth would begin exiting the market.
The sub prime bubble just made this problem even worse and more sudden, the market was facing the perfect storm of peak oil and peak boomer investment both oil and boomers were about to go into terminal decline.

 

Its is not that Stratton Oakmont was an anomaly in the system, its just that they exposed what the financial system is: a giant Ponzi scheme run by arrogant delusional narcissists addicted to excess and hedonism.

He was not the first Ponzi operator and he wont be the last, Bernie Madoff proved that, Madoff was just more sophisticated and low key in his approach.

But the biggest Ponzi will be implode soon, fiat currency itself.

So where is he now? Jordan Belfort currently is on the sales and motivation speaker circuit and still presumably owes tens of millions of dollars to his former investors.

Banker suicide cluster weeks before Barclays LIBOR charges

banker suicide and libor scandal calendar

The body count:

Jan. 26, 2014
William Broeksmit, 58.

retired Deutsche Bank
Found hanging at home

Jan. 28, 2014
Gabriel Magee, 39.

JP Morgan’s European headquarters in London.
Reportedly leaped to his death from the 33rd story of his workplace

Jan. 29, 2014
Mike Dueker, 50.

Chief Economist at Russell Investments
Jumped over a four-foot fence and fallen some 40-to-50 feet down an embankment?

Feb. 3, 2014
Ryan Crane, 37.

JP Morgan trading exec.
Found dead at home poisoning suspected.

Feb. 4, 2014
 Richard Talley, 57. 

Former investment banker at Drexel Burnham Lambert and founder of Centennial.
Found is his garage at home with self inflicted nail gun wounds.

Do you believe in coincidences?

http://www.thedailysheeple.com/following-a-wave-of-banker-suicides-3-former-barclays-bankers-now-charged-in-libor-scandal_022014

http://www.silverdoctors.com/alert-at-least-20-bankers-now-dead/

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