Note to Readers:

Please Note: The editor of Impact of Sex & War blog is a member of the Ecology of Peace culture.

The problems of poverty, unemployment, war, crime, violence, food shortages, food price increases, inflation, police brutality, political instability, loss of civil rights, vanishing species, garbage and pollution, urban sprawl, traffic jams, toxic waste, racism, sexism, Nazism, Islamism, feminism, Zionism etc; are the ecological overshoot consequences of humans living in accordance to a Masonic War is Peace international law social contract that provides humans the ‘right to breed and consume’ with total disregard for ecological carrying capacity limits.

Ecology of Peace factual reality: 1. Earth is not flat; 2. Resources are finite; 3. When humans breed or consume above ecological carrying capacity limits, it results in resource conflict; 4. If individuals, families, tribes, races, religions, and/or nations want to reduce class, racial and/or religious local, national and international resource war conflict; they should cooperate to implement an Ecology of Peace international law social contract that restricts all the worlds citizens to breed and consume below ecological carrying capacity limits; to sustainably protect and conserve natural resources.

EoP v WiP NWO negotiations are documented at MILED Clerk Notice.

Friday, March 13, 2009

The [BIS/Zimbabwe Economics/Global Debt-Slavery Central Banking] Tower of Babel Economy

[ReEvaluating MI :: WorldIsland2Heartland :: SufiVilnius CoCreators]The Creature from Jekyll Island: The Federal Reserve Bank, by Edward Griffin

It is important to notice that these world scholars who believe in the "useless eater" philosophy are neither right nor left. They will use both Fascism and Communism, as long as they can control the population of the earth. Anyone who supports their goals is richly rewarded, but beware the one who stands in their way.

Contrary to what most conspiracy theorist think, it is not one group (Illuminati, Free masons, Club of Rome, etc), but rather the four hundred odd "Think Tanks" across the world with their learned academics, financiers, religious leaders and politicians who eventually draw up these policies who are responsible for it. These "Think Tanks" are the bodies to which both the left and right wings are attached…but who or what is the brain?

One of these "Think tanks" is the Catholic military order known as the Jesuits. Their leader is Peter Hans Kolvenbach, a Dutchman, also known as "The most powerful man on earth" or "The 'Black' Pope". Chances are you have never heard of him. The Jesuit order played a big role in "Liberation Theology" in South America and Africa where communists took over and killed millions of ‘useless eaters’.
~ The Philosophy of the ‘Useless Eaters’ || Why There is Nothing Wrong with Being a Racist ~


Tower of Babel Economy

The economy resembles a financial tower of Babel. And it is starting to crumble.

By Robert Morley, The

July 1, 2008

In an inflationary economy, big numbers quickly lose the shock factor.

Over the course of just a few years, a single banana becomes 10 times more expensive than what a four-bedroom home used to cost. A simple two-ply square of toilet paper sells for $417, while a full roll is priced at more than $140,000. And don’t even torture yourself by guessing how much a gallon of gas can go for under these conditions. The numbers get so big, not only do people stop trying to understand them, they begin to ignore them.

So it is alarming that the latest report from the Bank of International Settlements (bis) went largely unnoticed.

According to the BIS, the number of outstanding derivative contracts in the global marketplace soared by double-digit percentages last year. Anything going up by double digits should elicit interest in and of itself, but in this case it is the sheer magnitude of the numbers involved that raises red flags.

The bis reported the total amount of outstanding derivatives has reached a practically incomprehensible $1.28 quadrillion. Yes, you read that correctly—quadrillion! And as astounding as this astronomically huge number is, the actual totals are even bigger because this number does not include derivatives related to the commodity markets (which the bis says it can’t track because values aren’t available).

A quadrillion dollars is hard to wrap your mind around. It takes a thousand trillion to make a quadrillion. Start with 1 million and multiply by 1,000, then multiply by 1,000 again, then multiple by 1,000 yet a gain—and then finally you get to 1 quadrillion. You can think of it as more than 92 times the value of all goods and services produced in America during 2007, or almost 20 times global gross domestic product.

Don’t be surprised if you haven’t heard of derivatives. Outside of banking circles they are less known, but you can think of them as essentially unregulated, high-risk credit bets. Although a more traditional definition might be that they are financial contracts designed to enhance returns, reduce costs, or transfer risk on loans, investments and other assets from a protection buyer to a protection seller, without transferring the underlying asset.

When derivatives first came into vogue, they were largely used to help individuals and businesses reduce risk—kind of like an insurance package—pay a bit more now, and have coverage later.

The example Kevin DeMeritt, president of Lear Financial, uses is of a farmer utilizing a futures contract to “hedge” his crop of beans, so that when the time to sell comes, the farmer is assured of a set price. In this case he might buy a futures contract, which is a promise to deliver a portion of his crop at a set price regardless of the price of beans come harvest time. If the price of beans goes up, the farmer only receives the contract price on his hedged portion of his crop—losing the difference. But if the price of beans falls, the futures contract still pays out the agreed-upon price. Thus the farmer can plan on how much money he will receive at harvest time and can budget accordingly.

The danger now becoming evident is that the derivatives market isn’t just farmers and other business people trying to protect against risk. The market is increasingly dominated by industries of “investors” and hedge funds that only exist to make money through derivative speculation. And a big part of that speculating is done with borrowed money.

“Unlike the earnest farmer … many of today’s institutions use futures, forwards, options, swaps, swaptions, caps, collars and floors—any kind of leverage device they can cook up—to bet the h- - - out of virtually anything,” confirms DeMeritt (emphasis mine throughout).

But when you play with borrowed money, the risk of getting burned beyond recovery increases rapidly.

According to DeMeritt, the majority of the $1.28 quadrillion in derivatives is “owned” on somewhere near 95 percent margin!

That has got to be “one of the scariest phenomena in economic history,” he says.

In case you are wondering, 95 percent margin means that for every dollar speculators have spent betting on derivatives, approximately 95 cents of that money was borrowed. For $5,000, a hedge fund speculator can control $100,000 worth of credit derivatives.

All this leverage is great if you are on the winning side of the bet—but if you are not, your principal can be quickly destroyed. Borrowed money works both ways.

“The one lesson history teaches in the financial markets is that there will come a day unlike any other day,” says the Wall Street Journal. “At this point the participants would like to say all bets are off, but in fact the bets have been placed and cannot be changed. The leverage that once multiplied income will now devastate principal.”

But making this derivatives tower of Babel all the more dangerous is the fact that, instead of reducing risk, a growing number of analysts warn that derivatives traders are actually concentrating it—and concentrating it here in America.

Out of the top 10 commercial banks with derivatives (as of last September), nine are American. Of the top 25, all but five are U.S. corporations.

And a look at their massive exposure shows that even a small miscalculation or stumble in the capital markets could be a recipe for unprecedented disaster. For example, according to the U.S. Department of the Treasury, JP Morgan Chase bank has $1.244 trillion in assets. Yet, it has a mind-boggling $91.73 trillion in derivatives contracts on its books. A person could buy the whole bank for a comparatively paltry $129 billion.

That means that if JP Morgan was exposed to just 1.3 percent of its outstanding derivative contracts, and things went wrong, it would be completely insolvent. That doesn’t take into account any other liabilities JP Morgan already has on its books.

When Long-Term Capital Management went bust in the late 1990s, people thought that the ensuing financial crisis was bad—but that will be nothing if the current derivatives tower ever collapses.

Long-Term Capital Management leveraged $4 billion into $100 billion in assets. This $100 billion became collateral for $1.2 trillion in derivatives exposure! With all that leverage, it only took a minute market move to make them insolvent several times over.

The current derivatives tower absolutely dwarfs the Long-Term Capital Management failure.

It is a mountain of borrowing on top of borrowing, leveraged debt upon debt. And when it is all said and done, no one really is sure who owes how much to whom. It is utter confusion. That is why the Federal Reserve stepped in so quickly when investment bank Bear Stearns began to collapse.

“Fed’s Rescue Halted a Derivatives Chernobyl” is how Ambrose Evans-Pritchard characterized the situation in the Telegraph. Warren Buffet calls derivatives “Financial Weapons of Mass Destruction.”

“It’s going to get far worse than anyone wants to admit. Even respected newsletter writers hesitate to suggest the truth,” says economic analyst Bob Moriarty. “It’s the end of the financial system, as we know it. Central banks might be able to paper over a few trillion dollars but the fraud is 10 times what they can paper over.”

As Moriarty indicates, U.S. financial markets are nothing more than a huge Long-Term Capital. All it will take is a shock to the stock or bond markets, or maybe sharply rising interest rates due to a run on the dollar, and the major counter parties to the derivatives contracts will fail. And when that happens, living in America all of a sudden won’t be so easy after all.

Already, stresses are appearing in the system. The housing bubble is deflating, taking the financial integrity of America’s biggest banks with it. Margin calls are hitting and billions in bank reserves and debt-fueled speculation are being wiped out. And as the economy threatens to be sucked down the deflationary drain, the government is inflating like crazy to try and buoy the markets and keep consumers from cracking under record debt loads. But ultimately, the Federal Reserve’s response is probably doomed to failure; the stresses on the system are too large. The opposite forces of deflation and inflation will not balance each other out. Rather they will rip apart varying sectors of the economy, leaving a worst-case scenario for everyone to deal with: devaluing home equity for home owners, falling dollar, soaring costs for food, gasoline, energy, commodities, and a rising cost for mortgages and other credit. It won’t be pretty!

For many years, Herbert W. Armstrong warned his readership that one day people would wake up and find a collapsed economy, a devalued dollar, and skyrocketing inflation. All these trends are already in place. Expect them to intensify.

The system is cracking. The tower of Babel is about to fall, and the resulting confusion will only make matters worse.

The good news is that once the coming collapse has run its course, all the fraud and corruption will have been purged from the system. The replacement will be a new economic order—one based on sound fundamentals and free from greed and deceit.

Source: The Trumpet PDF(013)]


What does one TRILLION dollars look like?

All this talk about "stimulus packages" and "bailouts"...

A billion dollars...

A hundred billion dollars...

Eight hundred billion dollars...

One TRILLION dollars...

What does that look like? I mean, these various numbers are tossed around like so many doggie treats, so I thought I'd take Google Sketchup out for a test drive and try to get a sense of what exactly a trillion dollars looks like.

We'll start with a $100 dollar bill. Currently the largest U.S. denomination in general circulation. Most everyone has seen them, slighty fewer have owned them. Guaranteed to make friends wherever they go.

A packet of one hundred $100 bills is less than 1/2" thick and contains $10,000. Fits in your pocket easily and is more than enough for week or two of shamefully decadent fun.

Believe it or not, this next little pile is $1 million dollars (100 packets of $10,000). You could stuff that into a grocery bag and walk around with it.

While a measly $1 million looked a little unimpressive, $100 million is a little more respectable. It fits neatly on a standard pallet...

And $1 BILLION dollars... now we're really getting somewhere...

Next we'll look at ONE TRILLION dollars. This is that number we've been hearing so much about. What is a trillion dollars? Well, it's a million million. It's a thousand billion. It's a one followed by 12 zeros.

You ready for this?

It's pretty surprising.

Go ahead...

Scroll down...

Ladies and gentlemen... I give you $1 trillion dollars...

(And notice those pallets are double stacked.)

So the next time you hear someone toss around the phrase "trillion dollars"... that's what they're talking about.

Source: Word(P05):167KB


What is the Mandrake Mechanism?: It's the most important financial lesson of your life!!

The Creature from Jekyll Island (Excerpt)


It is the method by which the Federal Reserve creates money out of nothing; the concept of usury as the payment of interest on pretended loans; the true cause of the hidden tax called inflation; the way in which the Fed creates boom-bust cycles.

In the 1940s, there was a comic strip character called Mandrake the Magician. His specialty was creating things out of nothing and, when appropriate, to make them disappear back into that same void. It is fitting, therefore, that the process to be described in this section should be named in his honor.

In the previous chapters, we examined the technique developed by the political and monetary scientists to create money out of nothing for the purpose of lending. This is not an entirely accurate description because it implies that money is created first and then waits for someone to borrow it.

On the other hand, textbooks on banking often state that money is created out of debt. This also is misleading because it implies that debt exists first and then is converted into money. In truth, money is not created until the instant it is borrowed. It is the act of borrowing which causes it to spring into existence. And, incidentally, it is the act of paying off the debt that causes it to vanish. There is no short phrase that perfectly describes that process. So, until one is invented along the way, we shall continue using the phrase "create money out of nothing" and occasionally add "for the purpose of lending" where necessary to further clarify the meaning.

So, let us now . . . see just how far this money/debt-creation process has been carried -- and how it works.

The first fact that needs to be considered is that our money today has no gold or silver behind it whatsoever. The fraction is not 54% nor 15%. It is 0%. It has traveled the path of all previous fractional money in history and already has degenerated into pure fiat money. The fact that most of it is in the form of checkbook balances rather than paper currency is a mere technicality; and the fact that bankers speak about "reserve ratios" is eyewash. The so-called reserves to which they refer are, in fact, Treasury bonds and other certificates of debt.

Our money is "pure fiat" through and through.

The second fact that needs to be clearly understood is that, in spite of the technical jargon and seemingly complicated procedures, the actual mechanism by which the Federal Reserve creates money is quite simple. They do it exactly the same way the goldsmiths of old did except, of course, the goldsmiths were limited by the need to hold some precious metals in reserve, whereas the Fed has no such restriction.

The Federal Reserve is candid. The Federal Reserve itself is amazingly frank about this process.

A booklet published by the Federal Reserve Bank of New York tells us:
"Currency cannot be redeemed, or exchanged, for Treasury gold or any other asset used as backing. The question of just what assets 'back' Federal Reserve notes has little but bookkeeping significance."
Elsewhere in the same publication we are told: "Banks are creating money based on a borrower's promise to pay (the IOU) . . . Banks create money by 'monetizing' the private debts of businesses and individuals."

In a booklet entitled Modern Money Mechanics, the Federal Reserve Bank of Chicago says:
In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper. Deposits are merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face amount.

What, then, makes these instruments -- checks, paper money, and coins -- acceptable at face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and real goods and services whenever they choose to do so. This partly is a matter of law; currency has been designated "legal tender" by the government -- that is, it must be accepted.

Excerpt: The Creature from Jekyll Island [Word(P48):260KB]
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