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How The Banking System Works.
- Banks: Trust us with your money
- People: What if you lose our money, who will insure our money?
- Banks: The government
- People: You mean the government that's funded with our money?
- Banks: Yes.
- People: So we are giving you our money and if you lose it we will be paid back with money that the government taxes from us?
- Banks: Yes.
- People: Where will that new money come from if you lost it in the first place?
- Banks: We'll lend it to you.
- People: How does that work?
- Banks: It's complex. No need to worry, the system can't fail because if it did, everything would come to an end.
- People: ...
- Banks: ...
- People: ...
- Banks: Trust us with your money.
The minimum wage in 1955 was $1.00/hr.
That would be four quarters, back when quarters were made with silver. The melt value of those four quarters (in today’s money) is about $20.
gee I wish this had a source..you can literally google every aspect of this post.
1995 minimum wage, silver content in US quarters pre-1964, spot price of silver
These are not hard pieces of information to find. Not everything needs to be injected directly into your thick skull from somebody else in order for you to know about it.
I mean honestly. Are you that fucking dumb?
I hate lazy people who want a source for everything as if Google doesn’t exist on your computer, phone, playstation and tv.
All of the info in the world, right there at your fingertips and you are too lazy to search or to comfortable with your skepticism that you refuse to do so.
Someone yesterday asked me “If IP law hurts individuals, why isn’t there anything written about it?” I wanted to cut my neck with a pencil, pull my brains out with a toothpick and jam them down my throat so I could suffocate to death.
Minimum Wage in 1955 to 1956: $1/hour (via Dept of Labor)
Price of an ounce of Silver in 1955: $0.95/ounce (via The Silver Institute)
What $1 in 1955 is worth in 2013 dollars: $8.23 (via Bureau of Labor Statistics)
Price of an ounce of Silver in 2013 (3/28/13): $28.82 (via MonEx)
The US dollar literally lost $20.59 or 71.4% of it’s value since 1955 due to inflation.
Next time don’t be so damn lazy.
You’re welcome,
Sha
Peter Schiff, a CIA agent, and a couple of fund managers debate about the health and insolvency of US banks.
I think Peter brings up a very important point that almost all people with a bank account forget: they are the creditors of banks.
Yes, when you put money into a bank, you are a depositor, but when that money is used as an asset and loaned out by the bank, you instantly become a creditor and the FDIC only insures so much of your deposit. The FDIC also doesn’t have enough money to cover everyone’s losses, because just like fractional banking, insurance relies on only having to pay out a tiny portion of their guarantees.
Technically, if a complete collapse of the banking system took place, every single depositor would become an unsecured creditor with nothing to show for their deposits. Because the only leverage we receive when we deposit money is the FDIC insurance. Other than that, we are operating on good faith that the bank will remain solvent, not lose our money and return it on demand.
The reality is that banks leverage our money and they themselves get some sort of security against the loans they make but that security or leverage is not transferable to depositors. We are simply allowing them to use our assets/money in return for “secured vault storage” and, if lucky, a tiny return on investment.
Banks can come after your assets if you fail to repay their loans but you cannot do the same. Not to the banks that loaned your money and not to the borrowers who took out the unpaid loans. You’re S.O.L.
The good news is that there are alternatives and people are finally seeking them out and moving their assets.
Is the Fed Lying About Its Gold? Mark Thornton talks to Lew Rockwell about monetary tsunamis.
Inflation is knocking at the door of the economy. Have you recession-proofed yourself yet? Time to seriously think about getting into BitCoin, Gold, Silver and other commodities that don’t deal with the Dollar, the Treasury or any other highly vulnerable assets.
The U.S. will win the global currency race to the bottom but decimate its economy in the process, economist Peter Schiff said.
With global central banks using currency manipulation to spur growth, capital markets have been awash in talk of what the fallout will be for investing strategies and consumers who may have to bear the weight of inflation.
LongtimeFederal Reservecritic Schiff said the central bank is being forced to prop up an ailing U.S. economy and the only way it can is by weakening the dollar.
“There is a currency war going on,” Schiff said at the Inside ETFs conference presented by Index Universe. “The irony of a currency war which makes it different from other wars is the object is to kill itself. Unfortunately, I think the U.S. is going to win the currency war.”
The CEO of Euro Pacific Capital in New York has been one of the market’s most outspoken supporters of gold as a hedge against inflation specifically and global turmoil in general.
He believes the metal will be a prime beneficiary of the currency war, while consumers will be its main victim.
“Anybody who believes there is no inflation isn’t shopping,” he said.
Government cost-of-living indexes such as theconsumer price indexare a “total fraud. Consumer prices in the U.S. are moving up much faster than indicated by the CPI. It is manipulated. It is deliberately designed to mask inflation, not report it,” he said.
As for U.S. economic prospects, Schiff believes they are gloomy.
Gross domestic productindicated a slight contraction in the fourth quarter, though most economists expect that to change in future revisions and growth to be steady but modest through the year. In the meantime, the European sovereign debt crisis is beginning to return to the news as well, though the stock market hasn’t seemed to mind any of it.
But that could change quickly.
“We’re broke. We owe trillions. Look at our budget deficit, look at the debt to GDP (ratio), the unfunded liabilities,” Schiff said. “If we were in the euro zone they would kick us out.”
For Schiff, such talk, though incendiary, is fairly routine.
He found a good deal of interest at the conference, though, with attendees crowding him after his panel discussion even as some other participants were beginning to catch flights out.
“The Fed knows that the U.S. economy is not recovering,” he said. “It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.”
Sometimes the consistent propagation of doom & gloom, especially from a well known and trusted source, causes the doom & gloom to come into fruition.
Even if I didn’t believe the US dollar was ready to collapse, which I do, I’d still bet that it would due to so much talk and preparation of it. The sell-offs will come and the investments will shift and it will all happen very quickly by those that have large sums of capital and the sophisticated machinery to detect and move said capital, leaving the unsophisticated investors at the bottom of the leftover rubble.
My advice to small time players is to get out and never come back in or know how hot of a fire they are playing with.
Petrodollar system?…if you knew about a little bit more,we are fighting just one war now days and it is in Afghanistan…name all those oil companies than you can find in Afghanistan…do your research before you start writing about it…
Before we go any further, I have a few serious questions for you:
Did you serve? If so, where; Iraq, Afghanistan, both or other?
Do you know what a petrodollar is? Source
Do you know what the World’s Reserve Currency is? Source 1 2
Do you know what a fiat currency is? Source 1 2
Do you know what the Federal Reserve is? Source
Do you know how the Federal Reserve profits from printing US “dollars”? Source 1 2
Do you know how the Federal Reserve profits from other nations having to exchange their money into dollars and pay a fee on that exchange in order to partake in trade for goods, like Oil? Source
Did you know America had plans to invade Iraq as early as 1999? Source 1 2
Did you know Iraq tried to leave the “dollar standard” for oil transactions and sell in Euros? Source
Did you know that we still have American bodies in Iraq? The “war”, which was undeclared, may technically be over, but America is still spending money to patrol Iraq. Source
Did you know that we don’t really plan on leaving Afghanistan anytime soon? Source
Did you know that Afghanistan has trillions of dollars in natural resources? Source
Do you know what the Trans-Afghanistan Pipeline is? Source
Do you know that since America took over Afghanistan, their opium production has sky rocketed? Source
Do you know what countries have serious issues with opium? Russia, China and Iran. Guess which countries are dead locked in proxy wars and economic wars over resources like oil, reserve currency and gold with the United States? China, Russia, Iran. (Proxy War Source 1 2 3) (Opium Source 1 2 3)
Do you know Iran has started to sieze selling oil in “dollars” and is now selling oil in exchange for gold? Source
Do you know that Libya tried to do the same thing as Iran and move to a gold standard right before America backed al Qaeda with weapons and money to over throw that government? Source
Do you know that America is backing the same terrorists in Syria that we fought in Afghanistan and Iraq? Source
Do you know that Russia is backing the opposing forces because Syria is the only port-country that is allied with Russia? Source
Do you know that America is helping France with a “war” in Mali? Source
Do you know that China has been working very hard to peacefully obtain contracts and rights to the vast resources of Africa? Oil, gold, Uranium and more? Source 1 2
Do you know that Mali is loaded with natural resources? Source
So ask yourself, why is your government backing the same “terrorist” groups that they sent you into Iraq and Afghanistan to kill? Why is the gov’t using American troops to help overthrow governments and secure natural resources as well as banking power over other nations? Why are we risking the lives of Americans for the interests of banks and corporations? You think that Iran’s main threat to America and Israel is military? It’s not. It’s monetary.
All of these wars, they aren’t just. They aren’t for justice. They are for currency and resource domination. They are to ensure that American banks and corporations and the “dollar” remain in charge.
At first, this puzzle seems vast and complex, but once you “follow the money” and learn about such terms as Reserve Currency, Petrodollar and how the Federal Reserve and other central banks operate and use fiat currency and how there’s a policy in place to overthrow any government that opposes that system, you start to paint a picture of why we fight the wars that we fight.
Hopefully this was a good learning experience for you and perhaps next time you won’t accuse me of foreign policy ignorance when it’s actually you who is ignorant of our policies and systems.
- Sha
A really good video that illustrates the Austrian Business Cycle and how credit expansion effects the economy.
(via automotiveinnovation)
(via theonecalledbiz)
Charles de Gaulle, in 1965, predicting the global debt crisis due to the fiat currency of the US.
openourminds-deactivated2013022 asked: simply the point is that this whole fucked up system could be solved by our govt. issuing it's own currency. paying off the fiat debt with fiat currency that the banks didn't EARN - they simply loaned profit into existence with no labor, OFF the backs of real laborers - get rid of the the 2 houses and instill a democracy - but that's not the reality. so we must loosen the FED grip first. how? STOP BORROWING. best way? pay the debt back? how? NOT by austerity. lol. look at the EU.
You are a perfect example of why I barely answer asks on here.
The notion of THE Coin is not the federal government minting and using it’s own sovereign currency. The whole idea behind it is to create a fiat asset and use that to get more of the Federal Reserve’s fiat currency (the one thing you don’t want to happen).
THE Coin would not be used to pay off debt to the banks, which you seem to be targeting. THE Coin would essentially be used to pay off debts the government has to other people, like the military, post office, social security and medicare.
We don’t even try to pay off our debt. I’m not even sure we are paying off any principle at the moment. I think we barely pay the interest like a broke college student paying minimum payments.
As for the rest of your ideas, you want to dump the House of Reps and the Senate? Oh god. As if we don’t already have a dictatorship… Besides, America is NOT a democracy, it is a Democratic Republic. It was founded as a Republic, but that has slowly changed.
Stop borrowing? Yes, I agree.
Pay back the debt? I disagree. Pay back other sovereign nations? Sure. Pay back the people (social security and private bond/bill holders)? Sure. But I don’t think we should pay back any of the debt obligations to the banks/Fed. Fuck ‘em. Let’s take a page out of the Icelandic Revolution and tell the banks to scram.
- Sha
