[eXpat]

Yesterday Saudi Arabia market´s took big loses, today is Israel
http://www.tase.co.il/TASEEng/
http://tickerforum.org/akcs-www?post=191613

[Oakley]

The monetary system the world uses is not money but debt. For example, here in the USA the pieces of paper we carry around and call cash are really debts of the Federal Reserve Bank. Your checking and saving accounts are debts of commercial banks. In 1932 the sum total of these bank debts was about $50 billion; today the sum total is about $9,127 billion. You may ask, "From where did all this new bank debt come?" The answer is that it was created out of thin air and loaned out at interest to the public (individuals, businesses, and governments) in return for the public signing notes and bonds payable to the banks.

The Constitution provided that Congress was to coin money and that States were to make only gold and silver coins legal tender. Unfortunately, in 1913, the banks and Congress colluded to give the banks the privilege of issuing bank debt as money. The next step was when Roosevelt confiscated the gold coins in circulation during the prior depression, followed by Nixon confiscating silver coins in 1964, leaving only bank debt circulating as money.

The purpose of this scam monetary system is principally to fleece the public, and it has worked quite well as evidenced by the progressive concentration of wealth in the hands of the few at the expense of the many. The politicians like the system also because it allows them, at least up until now, an open line of credit to spend far in excess of what they could pay out of taxes alone. Of course they have indebted citizens far beyond what can possible be paid, bringing us a certain future of financial collapse.

The current system allowed for this huge inflation of the "money" supply, as I have already indicated from $50 billion in 1932 to $9,127 today. This is one of the reasons that what could be bought in 1913 for pennies now costs dollars; when you increase the money supply, you diminish its purchasing power.

We have reached a point in the progression of this scam where the public has been bled dry and cannot pay these artificial debts to the banks, and since the banks are now insolvent, they cannot pay their debts (checking and savings accounts and CD's) to the public either. The only thing that keeps the system operating is deliberate deception by the bank regulators and the accountants who examine the financial statements of the banks, plus the ignorance of the public about the nature of the system.

We are in the process of financial collapse. The most likely course will be for the banks to collapse as panic overtakes more and more minds and checking and savings accounts and CD's are liquidated in favor of Federal Reserve Notes under the misguided assumption that the Federal Reserve Notes have value. When the banks are run, they will lose the capacity to create more "money" out of thin air and the depression will be upon us in full force. There may be attempts by governments to bypass the current system and create their own paper money out of thin air, spending it into circulation, but such an attempt will only lead to a Wiemar Republic or Zimbabwe hot potato effect where prices explode in a hyperinflation orgy.

The correct answer is to walk away from the present system by Congress following the Constitution and coining gold and silver. This would entail letting the banks and the federal government collapse, with their debt becoming worthless. The most responsible thing the federal government could do is to issue these coins prorata to us citizens, that is if Ft. Knox has not already been looted by these sociopaths we call our leaders. The justification for issuing these coins to the public is that originally gold and silver coins were taken away from the public in return for the debt based pseudo money in circulation now. It would be inequitable for the new gold and silver coins to be sold to the public in return for debt based money because the public has been looted by the current system and does not even have the phony money to pay for the coins; only the looters in the financial industry could afford to buy the coins.

Of course there will not be a rational workout of this mess, and the chaos will ultimately lead to revolution. It would be a fallacy to think that those who have brought us this slave system will voluntarily set us free. They will just hang on to power till the bitter end when Madame Guillotine serves them their just deserts.

I don't know what will happen Monday, but in general interest rates should rise as debt becomes more risky. I think gold and silver will fall at the forces of deflation become more and more evident. I think the stock market will surprise people temporarily, gaining another 1/3 in value before it finally gives way to panic; what money comes out of the bond market and precious metals markets will be looking for a home and certainly real estate will not be that home, leaving the stock market as a temporary haven.

[pup55]

$this->bbcode_second_pass_quote('', 'e')njoy the fruits of their own labor.

[nobodypanic]

$this->bbcode_second_pass_quote('Oakley', 'T')he monetary system the world uses is not money but debt. For example, here in the USA the pieces of paper we carry around and call cash are really debts of the Federal Reserve Bank. ...
I don't know what will happen Monday, but in general interest rates should rise as debt becomes more risky. I think gold and silver will fall at the forces of deflation become more and more evident. I think the stock market will surprise people temporarily, gaining another 1/3 in value before it finally gives way to panic; what money comes out of the bond market and precious metals markets will be looking for a home and certainly real estate will not be that home, leaving the stock market as a temporary haven.

[Oakley]

$this->bbcode_second_pass_quote('nobodypanic', '
')the sentiment that metallic currency has intrinsic value and therefore makes exchange possible went out with the advent of the physiocrats. your monetary theories are a throwback to pre-seventeenth century thought. ...
in any case, metallic coin can be adulterated (see rome) and so is no barrier to inflation. and further, it has been known since copernicus that the better the coinage (the higher the percentage of 'precious' metal contained in it), the more it is hoarded with a concurrent drop in its circulation (velocity) in comparison to the 'less good' money already in the system.
you can't save the market paradigm. you're going to have to let go of the entire thing, not just tweak some piece of it.

[Sixstrings]

The irony about all this: Government are being downgraded.

To calm the markets, they might print more money and inject it in the markets. Which only further erodes their credit worthiness.

[smiley]

$this->bbcode_second_pass_quote('', 'T')he irony about all this: Government are being downgraded.
To calm the markets, they might print more money and inject it in the markets. Which only further erodes their credit worthiness

[peripato]

$this->bbcode_second_pass_quote('smiley', '')$this->bbcode_second_pass_quote('', 'T')he irony about all this: Government are being downgraded.
To calm the markets, they might print more money and inject it in the markets. Which only further erodes their credit worthiness