1. Who makes our money.
Actual construction.
The paper notes...
"The establishment of the Bureau of Engraving and Printing can be traced as far back as August 29, 1862, to a single room in the basement of the main Treasury building where two men and four women separated and sealed by hand $1 and $2 United States Notes which had been printed by private bank note companies."
Not the FED's money...All that happened in 1913 was the standardization of the commercial Banknotes in circulation...prior to 1900 there were 1600 different banknotes in circulation in the USA.
The private banknotes the commercial banks have been issuing for easily over 600 years now...the further into the future...the greater their ability to issue and account for banknotes became...up to the point now where most of the supply has been digitized and is mostly just electromagnetic polarity differentials on hard disk platters.
Coins are from the US mint...
They are the actual United States Government issued money.
In 1792 Coinage act the Government "fiat" or decree defined a US Dollar as...
"DOLLARS or UNITS – each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver."
The Rothchild/Bank of England controlled the Global Gold trade/supply...And their plan was to put the world on a "Gold standard" and eliminate the silver or bimetalic standard that the rest of the world was on...
Why...simple...To take over control of the global monetary system.
The City of London backed the Gold republicans headed by William McKinley, Jr. to get the USA on the "Gold standard"
In 1900 the new government fiat or decree...the Gold standard act defined the US Dollar as...
"the dollar consisting of twenty-five and eight-tenths grains of gold nine-tenths fine ... shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity of value with this standard, and it shall be the duty of the Secretary of the Treasury to maintain such parity."
Fast forward to the United States $1 Coin Act of 1997
"The Sacagawea dollar, along with the Presidential Dollar series, is one of the two current United States dollar coins. This coin was first minted by the United States Mint in 2000 and depicts the Shoshone woman Sacagawea, a member of the Lewis and Clark Expedition, carrying her son Jean Baptiste Charbonneau. Artist Glenna Goodacre used a 22-year-old Shoshone woman named Randy'L He-dow Teton as the model for the young Sacagawea The 2000-2008 reverse side was designed by Thomas D. Rogers."
It's decreed to be
8.100 g (0.26 troy oz)
Diameter 26.5 mm (1.04 in)
Thickness 2.00 mm (0.079 in)
Composition Copper with manganese brass cladding:
88.5% Cu
6% Zn
3.5% Mn
2% Ni
Because a small group of men calling themselves "We the people" way back in 1783 gave a thing they created out of thin air called Congress the above power...to coin money.
and regulate the value...really...
All money issued by the US Government for its entire history...has been fiat or by decree.
The Government says...money is this...period end of story.
Banknotes...are not money...but they can be used like money since they are supposed to be backed by money.
Like carrying around a few 1000 dollar coins can be a problem...but 20 100 dollar banknotes can be put in a pocket.
Simple.
2. How money comes into existence.
All the "money" currently in existence came into existence by decree or fiat.
The required amount of power was acquired and money was decreed into existence.
Those at the top of the hierarchial power amassing pyramid decree what is money.
An example is the 1792 Coinage act where the US Dollar or uint was decreed into existence.
Coins...The US Treasury has an obligation to satisfy the public demand for coins.
So whenever demand for coins in the USA increases...The Treasury must increase the supply of coinage.
What about the paper money or the credit system?
Credit is not money...It's backed by money...So ultimately it can be used like money and is considered money.
A consumer requests a commercial bank directly or indirectly to create credit.
To buy a house or when using a credit card.
In 1944 the total credit supply or total credit market debt or the money supply of the USA was around 355 billion Dollars
From then till now or 65 years...US consumers have requested the commercial banking network within the USA to issue 52.5 Trillion Dollars of new credit which is all debt.
Basically attaching about 7.8% interest/year to the 355 BillionDollars caused it to inflate into the 52.9 Trillion Dollars that currently exists
Of course the Federal Government of the USA has issued 11.68 trillion Dollars of bonds called treasuries and "borrowed" 11.28 Trillion Dollars of the 52.5 Trillion Dollars that US Consumers have requested the commercial banking network within the USA to issue over the past 65 years.
When the FEDERAL Reserve Buys treasuries...this is just a temporary operation...All the treasuries are eventually sold into the bond markets.
I'm sorry folks but the vast majority of the debt was created by all of you...Existing within the global system...because the exact same credit system is in operation in every country on Earth.
The total money supply which is credit or debt is roughly 2.5 times the GDP of a country.
Credit or what is used as money comes into existence by all of you requesting it to be issued by commercial banks.
Like you have a job...and work for a week...and demand to be paid...becuase you have things to buy and bills to pay.
The money has to come from somewhere.
If the money you all demand every second of existence to pay for every second of existence does not exist...It has to be manufactured or you will all rapidly cease to exist.
There is demand for money...and supply.
You all demand money...The commercial banking system satisfies those demands.
The commercial banking system as you see it today is around 600 years old...It's an innovation.
It was a solution to a problem...The problem of how to satisfy the demand for money...food...POWER by the population when the supply of money ran out.
A SOLUTION THE "OWNERS" OF THE MONEY SUPPLY DREAMED UP AND IMPLEMENTED CENTURIES AGO.
fabulous repetition hyper.... so nice hearing from you again.
ReplyDeletecurrenlty we are enjoying another bull market. hope to see you again at the new top.. & then we'll sell together & profit handsomely.
"fabulous repetition hyper.... so nice hearing from you again.
ReplyDeletecurrenlty we are enjoying another bull market. hope to see you again at the new top.. & then we'll sell together & profit handsomely."
Think of all the people who got screwed on the way down?
"When plunder becomes a way of life for a group of
men living together in society, they create for
themselves in the course of time a legal system that
authorizes it and a moral code that glorifies it"
Frederic Bastiat - The Law
Off you go now and glorify in your plunder my friend!!!
Great to see you posting again. You were missed. Thanks.
ReplyDeleteProblem - Hyper is repetitive
ReplyDeleteSolution - Replace Hyper with a robot.
loving it hyper.
ReplyDeleteWhen the pigs realize the trough is being carefully pulled out of the pen why they are shitting or fucking all over each other, i will stand on my roof with my protection and laugh.
Making a profit right now is akin to perpetrating a holocaust on your own race! Dont you get it? Maybe the need for repetition??
"Making a profit right now is akin to perpetrating a holocaust on your own race!"
ReplyDeleteGood way to put it. I prefer to just sit this out too...
this is it. hyper's predictions will begin to manifest with horriying clarity over the next 2 to 4 months.
ReplyDeleteThe tone of comments on this blog will change considerably. Hyper may also begin to blog on bewer topids, even if drastically more esoteric than the ones already discussed.
Protect your assets and your families at all costs.... goodluck and god bless =)
Yes, nice to see you back.
ReplyDeleteThe banking system was instituted to satisfy the economic demands of a huge population bubble lasting on and off over 500 years.
That bubble is done. In 30 years 30-40% of the population of western nations will be over 65. Nations of little old ladies. Roughly about the same time the population will begin falling as the old ladies die off.
Needless to say, this will change things a wee bit.
Karl Denninger is starting to sound like Hypertiger! From his 9/15 blog:
ReplyDelete"...Do you really believe that those interest payments can be made?
Look at that chart.
Now look up above at the top chart.
That is reality right here, right now, today.
Tell me it doesn't turn into the bottom chart.
I didn't make these numbers up folks. That compound annual debt growth rate is real.
More importantly, Geithner, Paulson, Bernanke, Bush, Obama: all have emphasized that "we must get more credit to consumers and businesses" as their primary mantra ever since this crisis began.
They are pressing this position because if we do not expand credit further the existing banks and other institutions that have bad debt on their books will collapse - and they know it."
Phoney money in the form of 30-year loans and such and other massive credit-extending schemes can keep this this system afloat for just awhile longer, but the graph starts to turn "bottom" as Karl puts it. It's mathematically impossible to sustain past a certain soon-to-come point.
http://market-ticker.denninger.net/
Karl said a collapse was certain on his blog today. Less than ten years Great presentation.
ReplyDeleteall that we are waiting for is inventories to be drawn down, and companies GS rates highly to sell more bonds.
Gonna milk this fat cow till its about to tip over, then they will leave the barn.
You know you're fucked when you have to rely on the understanding of Denninger who has the vocabulary of a 9th grader.
ReplyDeleteLike a mental retard, you'll get assisted across the street but to a corner you didn't want to go to.
Not much longer now...
ReplyDeleteEverything was going wonderfully...and then....happened to screw it all up.
Going to need a scapegoat to explain then next down leg.
or hyperinflationary blast off.
It's the end of the line.
Either a continuing collpase from this lower high to oblivion or a hyperinflationary explosion followed quickly by a hyperdeflationary implosion to oblivion.
The 1345 collapse of the Venice based global financial system was followed by the black death.
Reports around that time mentioned the appearance of the grim reaper figure and strange mists/lights in areas that soon suffered outbreaks.
25 to 50% of the European population was estimated to have dropped dead.
The Black death is used as a scapegoat for the collapse of the compounding interest system.
It took until the 1600's to consolidate power and reconstruct the system again...
The current global financial system that is reaching the same logical conclusion as the Venice system.
The bull market in misery is just around the corner.
Everything was going wonderfully...and then....happened to screw it all up.
Billions of you all just marching to your doom with glee oblivious.
There was a system before the 1345 iteration...the roman imperial trade system.
and before that as well...
It can all be traced back...close to 6000 years of unbroken history...
6000 years of repetition.
Inflation greater than previous inflation to maximum potential followed by inflation less than previous inflation to maximum potential.
A wave...
You all really have zero idea how truely pathetic you are.
All blasted 24/7 by brainwashing to fortify the belief.
That you all are not the epitome of stupidity.
You are not the first and you won't be the last to inform me of what I'm already aware of.
The fabulous repetition of running in terror from that which you all are inevitably going to smash into.
"You all really have zero idea how truely pathetic you are."
ReplyDeleteI guess all those other geniuses called Nobel laureates haven't got a clue either because I don't know of a single one that has writtem a missive on this.
"Either a continuing collpase from this lower high to oblivion or a hyperinflationary explosion followed quickly by a hyperdeflationary implosion to oblivion."
Gee, thanks Hyper, that really clarifies things a lot. You're just like my doctor who just yesterday predicted, "I'm either going to be alive or dead tomorrow"....
Hyper is freaking amazing. I'm pissing every minute of every day away trying to figure out if the crims are gonna trash the dollar or simply pull the plug and then Hyper says:
ReplyDeleteEITHER ONE COULD HAPPEN
OMG, Hyper I worship you. You've got an IQ of [blank]
Where's Manny, the other self-proclaimed wizard of deflation.
ReplyDeleteHey Hyper, you've got competition. This guy writes better than your 6th grade scribe.
ReplyDeletehttp://fdralloveragain.blogspot.com
I am flabbergasted that people arent waking up to the cycles. How many people need chelation treatment to understand this? This is easy at this point you dim wits!
ReplyDeleteCollapse.
Plague.
prepare, or you are a retard. Liike a guy standing in the rain that YELLED, NO, AT A GUY OFFERING AN UMBRELLA!
whaaaaaaaaaaaaat?!?!
take it or leave it
ReplyDeleteHeads up! Reality Change Ahead!
In running our MOM (model of modelspace) cleanup of the lexicon prior to tuning, it became apparent that October 25 turn in emotions globally will be dominated by a [lock down/implosion] of the [planetary financial/banking system]. The data suggests that such things a [currency trading] and [commodities trading] as well as many other [digital trading forms] will be [suspended]. Some will never resume, or if they do, they will be in entirely different forms. There may be a [banking lock up] in many countries emanating from the USofA outward. There may be [inter bank lock downs] in which [central banks] and [wealth storage clearing houses] will not be able to function. There are data sets suggesting that the rapid shift into building tension language on the 25th originates from and is propelled by the [financial system implosion] that then morphs over into [dollar rejected by all] a mere 10/ten days (more or less) later. There may be shut downs of all kinds of banking activity within the USofA and the rest of the anglosphere.
The [sudden/urgent travel] of the [administration (obama et al) minions] in early November, under this MOM background load shows up as being about [desperately trying] to get the rest of the [planet] to [loan] the actual [resources/wealth] to [restart] the [USofA banking system].
This MOM data set can be wrong in a way that the larger modelspace can not. The MOM set is so small that if it is wrong it is usually widely so. However, the data sets here are so focused, and bring in such crisp emotional shifts relative to the same days (10-25-2009), that it made sense to prepare this note.
If correct, this is the beginning of "The Big One" relative to the dollar and the central banking system. Everything else in the modern world depends on this structure...so it will be a big one throughout all of the social infrastructure.
If MOM is correct, then the [dollar death] will be way more dramatic and waaaay shorter than i had first thought. MOM is showing very dramatic language shifts (albeit against a much smaller background) for not only October 25, but also in a very sharp crocodile tooth pattern from November 4 through December 10th indicating a very very emotionally choppy time.
So, heads up! Reality shift (time/event bump) just ahead. If MOM is correct, there will be some additional levels of [visibility] on October 10th through the 15th that will put a focus on the 'trigger' that will show on October 25th and beyond.
Thomas, have you factored in "cheese raining from the sky" in the event of a successful moon-bombing/cheese mining operation by NASA on the 9th?
ReplyDeleteThey are preparing large sheets of wax as we speak in the Pacific Ocean to "press and seal" as the cheese rains down from the moon!
Total credit market debt...It's what the FEDERAL RESERVE calls the Money supply of the USA
ReplyDeleteSeptember 17, 2009
It was reported to be 52.791 Trillion dollars
That was for q2
June 11, 2009 or q1 was 52.915 Trillion Dollars
Meaning the US Money supply contracted by 124 Billion Dollars
Something like this has not happened since the 1930's
Negative growth of the money supply.
Another day of incredible "deflation"...lol
ReplyDeleteAnother day of anonymous morons
ReplyDeleteGo see Zombieland hyper, it will make you laugh.
ReplyDeleteBy cheese, do you mean He-3? Thats the true purpose of our little moon mission.
So far the $1.8 trillion dollar deficit has postponed the implosion, but it is still coming.
ReplyDeleteThe dunce that is HyperTiger is mouthing off on WallstreetExaminer now.
ReplyDeleteOf course its the usual "Its over blah blah"...meanwhile stocks, gold continue to skyrocket while the dollar tanks. And of course the sheep party on as usual oblivious to it all.
Well, I looked HyperTiger up in the phonebook and dagnamit, it just aint there.
ReplyDeleteHypes getting a little edgy these days. Look Hyper, "Its collapsing" upward again...hahahaha
Hyper, its collapsing, its collapsing!
ReplyDeleteOh wait, I forgot Hyper said anything could happen. Inflation, deflation, hyperdeflation, hyperinflation, milflation, hasflation, orflation,...
I think Hyper is a masturflationer.
P.S. Why no updates in over a month? Oh, thats why.
Anonymous said...
ReplyDeleteI have nothing to say or repeat. If you disagree, dont read. Although I would love a update, on that we agree.
It is only repetition because your skull is too damn thick to soak in anything. I have been reading HT for about 18 months now and as I study what has occurred, I realize how right on he is. The mortgage default studies wonder why defaults were so high in the late 1990's, despite a great economy on the surface. They wonder why a boom failed to generate inflation in prices (oil and gold were 1/3 the price of the peak). Deflation started in the late 1980's is why. The US piled up unservicable cash, which went into speculation, which produced imaginary returns to bail out debt that was rotting. We had to consume home equity to stay afloat. Now they use a zero interest rate policy. This will force more and more money to be acquired to service retirment and depress spending, which will depress earnings and dividends and wipe out stocks. People will move down in housing, not up. The whole world is linked to the US and it trade deficits and they will deflate with us. The imagination the Fed is making debt disappear will awake to a bad dream that it is all still there and the socalled printed money is owed back to the Fed with interest (mortgages make more than 1/4%). The Fed has missed a critical turn and ensured we deflate. The US consumer has enough crap piled up to not go shopping for 3 or 4 years.
ReplyDeleteManny is right here you anonymous SOB. You tell me how they are going to get rid of 400% of GDP debt and I will listen. But, your assets are someone elses debt and being what kind of gutless SOB you are, if you are in debt, I feel sorry for your creditors. Tell me how you are going to retire on assets that produce zero return, while the bastards that run the economy prop the whole system up so they can abandon ship with soemthing that don't even exist? Chinese are going to sell our bonds? And do what? Get dollars? Well, seems they are still falling over themselves to get dollars because if they don't, they will deflate to oblivion. People are pouring money into China with no clue how they are going to get it back.
ReplyDeleteThe point is that the bankers know the truth. They aren't showing their hole card. The government is letting Michael Bloomberg spin everything like it is working. Every article says the Obama stimulus plan saved the economy. The plan hasn't even happened yet and the Bush plan last year vanished into thin air, some $200 billion. The Obama plan so far has been nothing other than to continue paying unemployment and medicaid.
Deflation has been going on for 20 years now. Gary Shilling says we are going to get good deflation. That has already happened and it has sucked every dime of home equity out of housing and every dime of equity out of commercial real estate. I just heard a TV woman talk about Obama wanting to give Social Security beneficiaries $250. Says he hasn't decided if it will be general or out of the fund. There isn't a fund, as it was looted to keep the government going.
We are at the end of the line. I don't know why it becomes apparent that they are looting the financial system at the end of the line, but I suspect those at the top know it is time to run. Or should I say what we think is the top. Lloyd Blankfein isn't the top. IN any case, if we hadn't have had this subprime/derivatives nonsense, we would have imploded in the late 1990's.
Now you tell me what is going to take the place of home equity? If the government spends money, it only cashes with the understanding we are going to pay. Pay with what? So, the hyperinflation happens for 3 seconds when those on the outside realize they can't pay either,so they better get back on a sinking ship. We will all ride it down to the bottom.
Cheryl Lynne, thanks for putting this stuff up. Anonymous might benefit by reading what I wrote on the blog while he continues to try to get rich on junk bonds and trust his broker who sold him AIG, WCOM, ENE, FNM, C, FRE, NT and all the other bottom feeders. I bet he is loading up on GE right now. There isn't enough money to bail GE out on earth.
There is a solution to this, but it will piss everyone off, save the the debtors. The problem is we have reached the limits that allows anyone to keep what they have. We are all likely to retire poor, except we will more likely just have to keep digging.
well written manny.
ReplyDeletepeople cant accept reality because they have been programed, as HT points out, and they have always lived this chino, solitare earring, VW, three cherries in my manhattan, delusion. It wont compute. Sorry folks but your kids have no future, you dont get to enjoy the golden years, you will finally feel the lash of your masters whip. You took and took, and now your a liability.
RE: Take more than you give CRAPOLA
ReplyDelete"You took and took, and now your a liability."
Look idiot, practically all the worlds population is a liability when there are no rules (deregulation). We certainly don't need 6 billion people to feed 6 million oligarchy.
The problem with HyperTiger is that he doesn't have a solution to the problem. The children at the bear forums and their gold standard. Oh sure, that will work with 6 billion crazy people. And science has been exhausted. The National Ignition Facility might be the last gasp for growth economics in the next few months. The big die-off is inevitable.
UPDATE: Hyper is now working on nuclear fusion and mannfm11 is designing the spaceArks to transfer about 3 billion animals (well actually subhumans) to Mars. Well, thats what Larouche says we have to do.
ReplyDeleteLets not give up on that exponential function yet. People, think squeeze the lemon, squeeze the lemon.
Matt Drudge Headline in 2010:
ReplyDeleteBreaking: 5 BILLION PEOPLE HAVE TO DIE SOON....
Update: ...Like right now
Aw well, it was fun while it lasted. The space aliens can chalk up this planet as +1 for the Derivatives column. I though we would get to the 12 Monkeys stage of development but no such luck.
ReplyDeleteNuclear Holocaust-->Derivatives Meltdown-->12 Monkeys-->Anti-Matter experimental error
"RE: Take more than you give CRAPOLA
ReplyDelete"You took and took, and now your a liability."
Look idiot, practically all the worlds population is a liability when there are no rules (deregulation). We certainly don't need 6 billion people to feed 6 million oligarchy.
The problem with HyperTiger is that he doesn't have a solution to the problem. The children at the bear forums and their gold standard. Oh sure, that will work with 6 billion crazy people. And science has been exhausted. The National Ignition Facility might be the last gasp for growth economics in the next few months. The big die-off is inevitable."
so whats your point as you type from a lavish office, that the other 6 billion dont have? Lotta gibberish from another anon
Another amazing day of deflation. Look at that currency get stronger....hahahahahaha....c'mon hyper, I need some more "wisdom"
ReplyDeleteThis nutjob deflationist has already shut down his peanut gallery-http://fdralloveragain.blogspot.com
"The problem with HyperTiger is that he doesn't have a solution to the problem."
ReplyDeleteHe doesn't have a solution because there is no solution...
"Why no updates in over a month?"
ReplyDeleteNo reason to. 'It' is here for all to see. Liars can lie all they want, no one is falling for it anymore and every day more see the truth for themselves - that the 'good old' days aren't coming back and this time it IS different.
Now I only repost HT's work when I'm in the mood. :)
Truth is comforting. It is warmth in the cold and a breeze in the heat. It is joyous to waken from the lie. It is, at once, satisfying, exciting, and terrifying. The sun shines brighter, the nights crisper, air fresher and the cool drink purer.
ReplyDeleteWhy mock the messenger?
Please, never deliver a lie. It would end my euphoria.
The money supply must now diminish.
Truth is beauty.