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Currently Browsing: Economic / Finance

Ending the Ownership of Money and Transitioning Into A Cashless Society

Unless you’ve been living under a rock, you are well aware that some of the world’s most powerful countries are insolvent due to ever-increasing debt. At this point, the economies are being held together through only one factor: continued faith in the currency by the average citizen. As soon as that faith disappears, the economies will crash. Not surprisingly, the leaders of these countries and their close associates (the banks) are actively seeking means by which they can escape the effects of the crisis they have created and still retain some sort of control. So how can they maintain their control? One way in which they will accomplish this will be the elimination of cash. This will be done to prevent a run on the banks in which the average citizen simply removes his money from the system. However, such a removal would be made impossible by ending the existence of bank notes. It would be replaced with an electronic currency system, so that the only “cash” that exists is a credit in a bank account. Are you starting to get the picture here? The thought of going to a cashless society seemed to many at the time to be both alarmist and ridiculous. Mankind has always had hard currency in some form, something physical that could be held in the hand. But with computers, the elimination of physical currency is not only possible but starting to happen.. Banks, with the support of legislation, are going to require that all transactions (even the purchase of a candy bar) be electronically performed by the account holder. Once this has been achieved, two other advantages (to the bank, not to the account holder) become possible. First, paper currency can be eliminated, which assures that, no matter how bad things get, account holders can’t remove their cash from the bank and stuff it in a mattress at home, since no physical cash exists. Second, banks could then charge account holders interest for their savings accounts, since transactions could take place only through the banks. News flash, they are already doing this. Now the concept of electronic currency is no longer the stuff of fairy tales. Most of the world’s governments have passed laws restricting the amount of cash an individual might use. Those who use cash over the designated amount are, in some cases, harassed or even investigated (generally for money laundering or drug dealing). Are you awake... read more

Why The $5.7 Billion Dollar Fine On Big Banks Is Actually A Joke

The Justice Department announced that 5 major banks will be fined a total of about $5.7 billion. The banks plead guilty to manipulating global currency and interest rates as far back as 2007. Citigroup, JPMorgan Chase, Barclays the Royal Bank of Scotland, and Swiss bank, UBS, will pay fines that symbolize the government’s desire to reign in the power of the financial elite. The New York Times painted the fines as a win because while banks have entered guilty pleas before, they have always been from subsidiaries of the parent companies. This time, the parent companies themselves plead guilty. While symbolically, the move appears to reprimand evil bankers, the reality is that such fines are miniscule compared to the profits banks reap. $5.7 billion dollars is nothing compared to the $40.24 billion net income that banks earned in the second quarter of 2014 alone. It was the second highest profit total in the last 23 years, surpassed only by 2013. Further, the fines are nothing compared to the trillions of dollars in bailouts that banks received at the outset of the financial crisis. What is more unsettling about the DOJ tap on the wrist is that while major banks must pay $5.7 billion, in the first quarter of 2015, customers were charged $2.5 billion in overdraft fees. Three major banks (JPMorgan Chase, Wells Fargo, and Bank of America) took $1.1 billion of this total. Some 600 others raked in the rest. Still, the “earnings” made up only 6% of bank profits for the major three involved. Overdraft fees for a single year could easily cover the $5.7 billion charged to the banks today. This discredits the alleged effectiveness of fining financial institutions for these transgressions. Though it is predictable that a government bought and paid for by bankers refuses to seriously address the stranglehold of their power over the economy and government, it is outrageous that the DOJ is attempting to portray such meager fines as a win for the people. “Today’s historic resolutions are the latest in our ongoing efforts to investigate and prosecute financial crimes, and they serve as a stark reminder that this Department of Justice intends to vigorously prosecute all those who tilt the economic system in their favor; who subvert our marketplaces; and who enrich themselves at the expense of American consumers.” Over and over, the state fines banks hundreds of millions if not billions of dollars for transgressions and policies that hurt a... read more

Who Controls The Source Of Money?

Who controls the source of money? Did you know that a small group of people and the corporations they run control all of the world’s resources? This is what Occupy Wallstreet was about. Mainstream media also owned by the elite diminished that movement with its “hippie slacker lazy freeloaders” stories. Are you awake Yet? As a reader you deserve to know the truth behind the disasters America and the rest of the world faces. If you want to learn more about what is going on in America then consider joining America’s Great Awakening Newsletter. These newsletters are free for a limited time.JOIN US TODAY If you are already a member you can, sign in... read more

Chase Cracks Down on Cash… Is Your Bank Next?

Chase Cracks Down on Cash… Is Your Bank Next? by Clint Siegner The War on Cash Escalates The Federal Reserve bank and its owners, the largest banks on Wall Street, want badly to be able to charge you interest for the privilege of depositing your funds. The problem is getting you to stand for it. Depositors already complain vigorously about zero percent returns on checking and savings accounts. If they must start actually paying the bank to hold funds on deposit, many will opt to simply withdraw the cash and stuff it under their mattress or into a safe deposit box. That simply won’t do. The Goal Is to Force You to Deposit Cash and Charge YOU Interest Bankers in the U.S. can learn something from the Swiss. The Swiss National Bank recently implemented negative interest rates without first solving the “problem” of how to prevent cash from fleeing the banks. Predictably, depositors started doing some math. In one example, a sizable Swiss pension fund, calculated it would save 25,000 francs for every 10 million it held in the bank by simply withdrawing those millions and taking the bales of paper francs to be kept in a vault. The vault storage fees are less expensive than the negative interest rate. Jumping the gun on the implementation of negative rates put the Swiss banks in an awkward situation. Like all fractional reserve lenders, they don’t have anywhere near enough cash to make good on the withdrawals that may be coming. The bank holding the pension money had little choice but to refuse the client’s demand for millions of francs – funds the client is contractually entitled to. Telling clients “sorry, you can’t make a withdrawal” never goes over too well! Nevertheless, the Swiss National Bank is sticking to its guns. It is encouraging retail banks to be “restrictive” with regards to cash withdrawals. And it is berating actors such as the pension fund for trying to circumvent negative interest rates. Apparently no one should be questioning the wisdom behind the policy! But the bluster isn’t hiding the fact that bankers stand upon shaky legal ground. The potential for a run on the banks remains. Insiders here look anxious to avoid a similar situation. Willem Buiter, the chief economist at CitiBank, thinks he’s got the answer to this banker’s quandary. Simply abolish cash. Or tax it punitively. He isn’t the only one supporting this radical solution. Other economists, including the prominent... read more

Shadow of Truth – Unemployed America

As our country and world slip further into the abyss of an economic slow down, the mainstream media only reports lies and propaganda. If we look at the reality of the job market the only jobs being created are, primarily, low wage, retail and service sector jobs. Not one of these job classes manufactures anything. How sustainable is an economy that simply shifts currency from a grocery store clerk, to a restaurant waiter or a nurse at the local hospital then back to the store clerk? This is merely a circle and the currency is trapped. Until someone steps in and creates a product that requires raw materials, from outside sources, and requires someone to sell what is manufactured, our economy can not and will not grow. First question. How many people were fired or lost their job for other reasons, like store closings, bankruptcy? Can anyone say Radio Shack? Sure you can. Radio Shack filed for bankruptcy in February and is planning on closing most of it’s stores. The remainder are being sold to Sprint and General Wireless. Is that reported when the mainstream media begins screaming about 295k jobs created and unemployment dropping to 5.5%? Not a word. How many people stopped looking for work because they have been unemployed so long they have given up? Silence again. How people are working multiple part-time jobs and would actually like to have full time employment? Crickets. Now, if we look at the holiday season from 2014, which is basically the last quarter, did we see a retail sector on fire with sales? Well, according to Reuters, holiday sales were down 8%. Not exactly the type of news to make a retailer going on a hiring spree. Can someone please explain to me how, in a retail, service based economy with money moving in a circle, is anyone hiring when we see two pieces of economic news that state the exact opposite. While this is going on the cheerleaders at CNN, CNBC and ALL the mainstream media are parroting the headline numbers of 295,000 “new jobs” and 5.5% unemployment. These clowns get their orders and read the tele-prompter and life is good for them. Bad actors that can not get a real job in an actual movie or commercials. Pathetic. Are you awake Yet? As a reader you deserve to know the truth behind the disasters America and the rest of the world faces. If you want to learn... read more
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