UK Telegraph Discovers Debt Free Money

One could slash private debt by 100pc of GDP, boost growth, stabilize prices, and dethrone bankers all at the same time. It could be done cleanly and painlessly, by legislative command, far more quickly than anybody imagined.

The conjuring trick is to replace our system of private bank-created money — roughly 97pc of the money supply — with state-created money. We return to the historical norm, before Charles II placed control of the money supply in private hands with the English Free Coinage Act of 1666.

Specifically, it means an assault on “fractional reserve banking”. If lenders are forced to put up 100pc reserve backing for deposits, they lose the exorbitant privilege of creating money out of thin air.

The nation regains sovereign control over the money supply. There are no more banks runs, and fewer boom-bust credit cycles. Accounting legerdemain will do the rest. That at least is the argument.

Some readers may already have seen the IMF study, by Jaromir Benes and Michael Kumhof, which came out in August and has begun to acquire a cult following around the world. …

Fed still blaming its victims for consequences of its own savagery

Despite arguments to the contrary from the Obama administration, mounting evidence suggests that the U.S. economy is rapidly falling back into negative growth territory. More Americans are out of the workforce than ever before, median household incomes are at levels not seen since 1967, and consumer spending is coming to a veritable standstill. The crisis is apparently so significant that a Federal Reserve governor recently said U.S. policymakers are crafting regulations that will force bank depositors to cover any losses should their financial institutions fail.

The question that many are asking is, how did this happen? How, after six years of recovery efforts and trillions of dollars printed, is it possible that the economy is not booming again?

This week the Federal Reserve published a report that claims to have figured it out and it turns out that the renewed economic downturn has nothing to do with foreign outsourcing, high taxation, increased health care costs for business or rising consumer prices for food and energy.

No, according to the Fed it is your fault. Apparently, you are not spending enough money. In order for the economy to recover you need to stop hoarding cash now and get out there and start buying more homes, cars, vacations, and electronics. Otherwise, you’ll only have yourself to blame when the system comes unhinged.

From the St. Louis Federal Reserve:

The issue has to do with the velocity of money, which has never been constant, as can be seen in the figure below . If for some reason the money velocity declines rapidly during an expansionary monetary policy period, it can offset the increase in money supply and even lead to deflation instead of inflation.…

During the first and second quarters of 2014, the velocity of the monetary base2 was at 4.4, its slowest pace on record. This means that every dollar in the monetary base was spent only 4.4 times in the economy during the past year, down from 17.2 just prior to the recession. This implies that the unprecedented monetary base increase driven by the Fed’s large money injections through its large-scale asset purchase programs has failed to cause at least a one-for-one proportional increase in nominal GDP. Thus, it is precisely the sharp decline in velocity that has offset the sharp increase in money supply, leading to the almost no change in nominal GDP…

So why did the monetary base increase not cause a proportionate increase in either the general price level or GDP?

The answer lies in the private sector’s dramatic increase in their willingness to hoard money instead of spend it. Such an unprecedented increase in money demand has slowed down the velocity of money

Top tier economists, it seems, are unable grasp why consumers have decided to hoard – in other words, save – their money even though the central bank is engaged in an unprecedented monetary expansion.

The answer is simple, really, and you don’t need to look at detailed government charts and statistics to figure it out….

http://www.shtfplan.com/headline-news/report-its-your-fault-fed-says-americans-who-hoard-money-are-to-blame-for-poor-economy_09062014

First it was “deadbeat homeowners” who were summarily evicted.  Now it’s greedy savers  who see through the smoke and mirrors of the bought and paid for media.   Not just an insult to the victim, it’s an insult to the audience’s intelligence.

http://thoughtcrimeradio.net/2014/08/why-did-the-fed-pump-and-dump-us-real-estate-markets

http://thoughtcrimeradio.net/2014/03/reprise-bernanke-admits-fed-caused-great-depression/

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton [Friedman] and Anna [Schwartz]: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.  — Ben Bernanke, lying through his teeth.

http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/

All a terrible mistake which led to the biggest concentration of wealth in human history up to that time.  And guess who profited the most?  The shareholders of the federal reserve inc.

War on ISIS will take years, cost billions, murder thousands: Mission Accomplished

The New York Times, long the preferred conduit for war propaganda, has laid out Obama’s plan to defeat ISIS, aka the Islamic State in Iraq and Syria.

The administration warns the effort will take years to complete and continue after Obama has left office. The first phase a sustained air campaign will, the Times claims, roll back ISIS gains in northern and western Iraq. Details on how this will work minus ground troops is not explained.

Next, the United States will shuffle around the government in Iraq to make it “more inclusive.” This is total blue sky.

Following the U.S. invasion and the toppling and eventual execution of strongman and former CIA operative Saddam Hussein, Iraq predictably descended into sectarian violence. This was planned. “What is unfolding is a process of ‘constructive chaos,’ engineered by the West,” writes Julie Lévesque. “The destabilization of Iraq and its fragmentation has been planned long ago and is part of the “Anglo-American-Israeli ‘military road map’ in the Middle East,” an effort introduced during the Bush administration and coined the “New Middle East” by then U.S. Secretary of State Condoleezza Rice.

The final element of Obama’s supposed plan to deal with ISIS calls for a de facto invasion of Syria. The Pentagon estimates this part of the plan will take at least 36 months. …

http://www.infowars.com/obamas-long-isis-war-it-will-take-years-and-kill-thousands/

Gen. McInerney: “We Helped Build ISIS”

Weapons from Benghazi ended up in the hands of Islamic State radicals

During an appearance on Fox News, General Thomas McInerney acknowledged that the United States “helped build ISIS” as a result of the group obtaining weapons from the Benghazi consulate in Libya which was attacked by jihadists in September 2012. …

http://www.infowars.com/gen-mcinerney-we-helped-build-isis/

oops!   Guess someone goofed!  Better luck next time.  You can see why the admin is so uptight about keeping a lid on benghazi.  Arming AQ was the plan from the start.  Perhaps the ambassador stumbled on it and had to be taken out per the stand-down.   At least that would be somewhat hopeful, it would imply there are still non-satanists in the government.