'Entire US System Is Unraveling' Jim Willie: Footnotes On Myths, Lies, Deceptions, Millstones

By: Jim Willie CB, GoldenJackass.com

Many are the myths held so firm by the public. Many are the lies told so boldly by the leaders. Many are the millstones around the neck of the system that is fast losing its momentum. Many are the frauds committed routinely in full view. The entire US system is unraveling, myths exposed, lies contradicted, while the millstones weigh down the financial and economic system. The absent Gold Standard, the invalidity of money, the insolvency of banks, the toxic nature of sovereign debt, the illegitimate money, the intrusive debilitating central bank franchise system, these are grand millstones around the neck of the Western system. The current monetary policy is killing capital, a fact not observed by 5% of working economists, the harlots working closely to policy making. The nation is hurtling quickly toward systemic failure in every conceivable frame of light. A quick review should be revealing of myths, lies, deceptions, and millstones.

USDOLLAR AS MONEY

The greatest myth of all is that the USDollar is money. No way, not a shred of truth! The reality is that Gold & Silver are money. The USDollar is declared to be legal tender, when it is actually debt denominated coupons brought down to low parcels for spending purposes. Being debt, the monetary system based upon the USDollar will next deliver powerful blows to the US population. Their savings and investments are based in the USDollar. Therefore the debt writedown will foist a huge wealth writedown upon the hapless masses. Their wealth was never wealth at all. It was more debt markers, gathered in much like Al Capone would hold.

LIFE SAVINGS

The myth is that the people’s life savings are always protected and safe. The reality is that 401k, IRA, and Keough savings plans are a grand trap. They entice the participants with tax deferral which is hardly tax avoidance. People’s savings are then stuck in the system, never to come out. The reality is that funds are subjected to the whiplashes of the ever-present asset bubbles. Next on the reality tap is the forced conversion to special USTreasury Bonds, where they will earn no interest yield and be vulnerable to USGovt debt default writedowns. The ongoing risk is also for Bail-in confiscation taxes, but that seems more like a fail-safe insurance threat in protection of accounting fraud and bank criminality.

BAIL-IN PROTECTION

The myth is that the Bail-in plans would recapitalize the big banks. The myth is that conversions would build back the urgently needed bank capital base. The reality is that the big banks are far too insolvent to remotely be in a position for such restoration. As the Western nations one by one installed the Bail-in plans, the light bulb went on in the Jackass skull. The Bail-in plans are an insurance policy against the big banks ever being forced to capitalize to proper levels. The Bail-in plans are an insurance policy against the big banks ever being prosecuted for grand fraud and grand larceny and grand counterfeit. Attack the big banks, and the people will lose a large portion of their life savings. Therefore, the big banks will be left alone to go about their business, whatever that is, to be sure mostly criminal.

SOLUTIONS AND SACRED TOO BIG TO FAIL BANKS

The myth is that the United States leaders are working avidly on a solution to end the stubborn financial crisis. The myth is that feeding the banking sector gobs of welfare cash will bring about a recovery. The reality is that the political and banking leadership of the nation has absolutely no interest in seeking a solution or implementing it. They are fully dedicated to preserving power, at any cost, even lost wealth of the nation, even wrecked economic system, even destroyed financial structure. The first step to any viable workable solution with potential to solve anything is the liquidation of the big banks. They suffer from incurable cancer in the form of the grotesque disease of insolvency, which plagues the nation. Such a step will never be taken, crystal clear from the last five years since Lehman was killed for exploited purpose, since Fannie Mae was hidden under the USGovt wing to conceal its multi-$trillion fraud. The powers in place will remain in place. Therefore, the US will remain on the path to suffer a systemic failure.

ZERO INTEREST RATE POLICY AS STIMULUS

The myth is that the ZIRP in place is stimulus to the USEconomy. The reality is far in the opposite direction. The only benefit from the 0% rate is that the big banks can fund their toxic bond redemptions with free money. They can fund their Interest Rate Swap derivatives with free money, in order to keep the USTreasury Bond complex from toppling over. The basic economic science dictates that when debt supply remains over $1 trillion annually, but with a vanishing breed of creditors willing to finance the debt, the prevailing rate should rise and rise and rise, kind of like in Greece, Portugal, and elsewhere. The reality is that the 0% cost of money has distorted all pricing of assets. The entire capital system has been turned upside down, unclear as to where value or profit lies. The reality is that the 0% rate is a gigantic wet blanket on the USEconomy, offering pitiful low yields to savers. The reality is that the 0% rate is slowly killing the entire pension fund system, and the insurance sector. The reality is that more savings are to earn interest than consumer loans are to pay out interest. Therefore the Zero Bound is a massive smothering device on the USEconomy. No stimulus here.

BOND MONETIZATION AS STIMULUS

The myth is that the QE programs are stimulus to the US financial system. The reality is far in the opposite direction. The reality is that the USFed is gradually becoming the only buyer of USGovt debt, the only buyer of converted maturing USGovt debt. The Weimar machine is the last resort window to purchase USGovt debt, and to prevent the rate on borrowing costs from rising to 10%. The reality is that the USDept Treasury is fast converting mountains of fraud-ridden USAgency Mortgage Bonds whose volume lies in the $trillions, so that the housing market might be freed up to recover. The reality is that the entire world reacts to the hyper monetary inflation that is the bond purchase initiatives, by hedging against it. The investment community and business sector hedge by buying hard assets. The rising commodity prices, energy prices, material prices, and resulting service prices, all result in a rising cost structure. The reality is that the QE bond purchases force rising costs and shrinking profits, which bring about a colossal capital destruction from business segment shutdown and retired equipment, later liquidated equipment. Outside Antal Fekete, hardly an analyst has noticed. The economists are fast asleep on this extraordinary destructive factor. They are paid to be asleep. No stimulus here.

USFED STIMULUS UNTIL RECOVERY

The myth is that the Bernanke Fed is committed to stimulus until a recovery occurs. They speak about a dual mandate of low price inflation and full employment, with the third priority of preserving financial stability. The reality is that the current monetary policy assures further capital destruction, further business shutdown, and further job cuts. The promised continuation is a death sentence, truth told. ZIRP is the smothering device. QE is the capital destruction tool. The fixed monetary policy relying upon both ZIRP & QE will continue until the US systemic failure and climax of USGovt debt default. One might be reminded of the old pirate saying, “The beatings will continue until morale improves!” The USFed monetary policy is killing the nation, rather than anything remotely resembling a solution, and surely not stimulus.

INSTITUTIONS AS BRAIN TRUST FOUNDATION

The myth is that the bank sector, the economic counsel, the news networks, even the charities, will offer intellectual and foundational support as the system works toward its restoration. The reality is that the bank sector is motivated only by preservation of power and protection of the money printing machinery. The reality is that the economists are obvious props for the big money center banks and investment banks. They have morphed over the years into a veritable harlot community with no motive to inculcate or disseminate truth. They have stepped into the roles of Wall Street marketing agents and the roles of apologist for failed government economic policy. They have been forced into the role of concealing what the big banks have created since the 1990 decade, a vaporous false foundation upon which the entire banking system rests, namely the derivatives. The news networks cannot speak the truth, or else the population would exit banks, exit investment securities written on paper, and invest heavily in Gold & Silver, even take wealth in droves outside the country. The charities are best exemplified by United Way, which devotes 5% of donations toward actual projects, with a ripe 95% devoted to executive compensation, their perks, and overhead. A nation’s institutions are its pillars for building wealth. Not much evidence here.

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