A discussion on gold, governments, personal and financial sovereignty with Tekoa De Silva of Contrary Investors Cafe. We also discuss the changing economics of violence, gold, and what the future may hold.
Second and lastly, buy PM’s every month and when the SHTF use PM’s to retire and exchange for property.( I like that advice!)
Hmmm… $3000 in Silver purchased 2 leagues of land in Texas in 1835.
Question, how long did it take for Zimbabwean currency to hyperinflate to zilch?
Trace: Appreciated being able to listen to interview, helps me understand where you are coming from. Totally different from what I had as a mental picture just reading your E-mails. I pictured you as probably being a seasoned businessman probably in your 50,s or even 60,s, now listening to you I realize you are much younger and extremely well informed for a younger generation that traditionally has not paid much attention to economic issues and firmly establishment oriented (meaning brainwashed by college professors selling the central bankers party line) so congratulations on your insight.
I am 72 and first started studying and reading about the Federal Reserve when I was a teenager, and only now do I see the outcome of the failed policies, if not DELIBERATE DESIGN that has enslaved the whole world to debt. Being Canadian I have been trying for years to educate first my family and friends, then politicians and even government officials, but they are so entrenched in the established system they can not see the forest for the trees.
We once had an HONEST Central Banker, (almost an oxymoron) Graham Towers, who testified before our Parliament in 1939 that; “every bank loan is a NEW CREATION of money, and when it is paid back it ceases to exist” a TRUTH with consequences that not one person in 10,000 consciously understands even if they intuitively sense that there is something dreadfully wrong with our present monetary system.
I have no hesitation in saying that the architects of the 1913 Federal Reserve Act designed it in such a way that it would allow the International Bankers to profit from every hour of labour, usage of natural resources and financial transactions of every citizen. They as you well know, STEALour substance through inflation which is just gradual enough to “cook the unsuspecting frog to death” if you know what I mean.
Here is the part that people don’t seem to get; interest is mathematically IMPOSSIBLE long term, and here is why. Going back to Graham Towers statement, since ONLY the principal of a bank loan is ever created, but interest is payable, the bankers withdrawal of interest of say a contemporary $200,000. mortgage (French meaning “death gamble) amortized over 25-30 years at say 5% average interest will in effect DOUBLE the amount of fiat currency taken OUT of circulation than was actually created when the loan was contracted.
It should be obvious then that the only way that interest can continue to be paid is if there is an ever growing number of new borrowers contracting ever larger loans to cover the uncreated interest as well as expansion funds for a growing economy, making it a classic Ponzi scheme. While I doubt that you are fooled by banker propaganda that they “make their money on the spread between the low interest they pay on deposits, and the higher interest they collect on loans. The fictions is that they loan out 90% of their depositors money and hold 10% in RESERVE so they can cover any withdrawals exceeding new deposits.
How can you loan a liability? The money still belongs to the depositor, so it is a LIABILITY of the Bank, but through the monopolistic hocus pocus of the Federal Reserve Act these deposits are magically converted to “RESERVES” on the strength of which bankers are allowed to create NEW CURRENCY/CREDIT out of thin air, as much as 20X what they hold in reserves, so they can collect interest on 20X the amounts they are paying almost no interest on today.
The RESULT of those activities over decades means that eventually everything of any value has been pledged as collateral for debt money and when the Ponzi scheme is in danger of collapsing, the government has to step in as “borrower of last resort” and the DEBT PYRAMID gets so large that it can no longer be service, hence in effect NEGATIVE interest rates we have currently.
This situation is rapidly coming to a climax where hyperinflation is a serious danger as even existing debt is monetized and the result could easily lead to civil unrest, martial law and war as nations states cannibalize their currencies to get a trading advantage.
While there are no SIMPLE solutions, merely “kicking the can down the road” as politicians are famous for doing only prolongs and exacerbates the problem, making the next generation even greater DEBT SLAVES than we already are!
Comment by Myron Martin — November 23, 2010 @ 10:58 am
First off, excellent audio ,very easy to hear.
Second and lastly, buy PM’s every month and when the SHTF use PM’s to retire and exchange for property.( I like that advice!)
Hmmm… $3000 in Silver purchased 2 leagues of land in Texas in 1835.
Question, how long did it take for Zimbabwean currency to hyperinflate to zilch?
Comment by Jay — November 23, 2010 @ 7:06 am
Trace: Appreciated being able to listen to interview, helps me understand where you are coming from. Totally different from what I had as a mental picture just reading your E-mails. I pictured you as probably being a seasoned businessman probably in your 50,s or even 60,s, now listening to you I realize you are much younger and extremely well informed for a younger generation that traditionally has not paid much attention to economic issues and firmly establishment oriented (meaning brainwashed by college professors selling the central bankers party line) so congratulations on your insight.
I am 72 and first started studying and reading about the Federal Reserve when I was a teenager, and only now do I see the outcome of the failed policies, if not DELIBERATE DESIGN that has enslaved the whole world to debt. Being Canadian I have been trying for years to educate first my family and friends, then politicians and even government officials, but they are so entrenched in the established system they can not see the forest for the trees.
We once had an HONEST Central Banker, (almost an oxymoron) Graham Towers, who testified before our Parliament in 1939 that; “every bank loan is a NEW CREATION of money, and when it is paid back it ceases to exist” a TRUTH with consequences that not one person in 10,000 consciously understands even if they intuitively sense that there is something dreadfully wrong with our present monetary system.
I have no hesitation in saying that the architects of the 1913 Federal Reserve Act designed it in such a way that it would allow the International Bankers to profit from every hour of labour, usage of natural resources and financial transactions of every citizen. They as you well know, STEALour substance through inflation which is just gradual enough to “cook the unsuspecting frog to death” if you know what I mean.
Here is the part that people don’t seem to get; interest is mathematically IMPOSSIBLE long term, and here is why. Going back to Graham Towers statement, since ONLY the principal of a bank loan is ever created, but interest is payable, the bankers withdrawal of interest of say a contemporary $200,000. mortgage (French meaning “death gamble) amortized over 25-30 years at say 5% average interest will in effect DOUBLE the amount of fiat currency taken OUT of circulation than was actually created when the loan was contracted.
It should be obvious then that the only way that interest can continue to be paid is if there is an ever growing number of new borrowers contracting ever larger loans to cover the uncreated interest as well as expansion funds for a growing economy, making it a classic Ponzi scheme. While I doubt that you are fooled by banker propaganda that they “make their money on the spread between the low interest they pay on deposits, and the higher interest they collect on loans. The fictions is that they loan out 90% of their depositors money and hold 10% in RESERVE so they can cover any withdrawals exceeding new deposits.
How can you loan a liability? The money still belongs to the depositor, so it is a LIABILITY of the Bank, but through the monopolistic hocus pocus of the Federal Reserve Act these deposits are magically converted to “RESERVES” on the strength of which bankers are allowed to create NEW CURRENCY/CREDIT out of thin air, as much as 20X what they hold in reserves, so they can collect interest on 20X the amounts they are paying almost no interest on today.
The RESULT of those activities over decades means that eventually everything of any value has been pledged as collateral for debt money and when the Ponzi scheme is in danger of collapsing, the government has to step in as “borrower of last resort” and the DEBT PYRAMID gets so large that it can no longer be service, hence in effect NEGATIVE interest rates we have currently.
This situation is rapidly coming to a climax where hyperinflation is a serious danger as even existing debt is monetized and the result could easily lead to civil unrest, martial law and war as nations states cannibalize their currencies to get a trading advantage.
While there are no SIMPLE solutions, merely “kicking the can down the road” as politicians are famous for doing only prolongs and exacerbates the problem, making the next generation even greater DEBT SLAVES than we already are!
Comment by Myron Martin — November 23, 2010 @ 10:58 am