GDP

The GDP needs to be combined with other numbers...Like total credit market debt...what the FEDERAL RESERVE calls the money supply...It's 46 Trillion...

So for around every 3.35 US Dollars a consumer requests a commercial bank to manufacture around 1 Dollar of GDP is created...

It takes 3.35 Dollars to create 1 Dollar to pay back the 3 dollars...Or just service the debt...

At 5% interest that's around 2.3 Trillion/year...

Basically every country has been operating like this for decades...It's not just the USA.

Basically it's impossible to ever pay the debt off...

Some people say...They will just inflate out...Germany tried that in 1920 and by 1945 They were a smoldering ruin pile...

And everyone in the world has been trying to inflate out for 6 decades now...In the USA consumers are requesting around 11 Billion dollars of debt a day or around 4 Trillion dollars of new debt a year attempting to inflate out of the 46 Trillion Dollars of old debt they owe...

Sometime next year it will hit 50 Trillion dollars...It's impossible to get out of debt by getting in debt...

The only surefire way to get out of debt is to not get in debt to begin with...But once in...the only way is to default...

The system is set up so that the top wins by default...Sure you all are servicing the debt now but there will come a time when you all can't even do that...then you all will be forced to default...

The top knows this and have always known this...The bottom are oblivious of this...

It's very simple...If you all learned in school that you all were inevitably doomed to default...You all would demand the system to be changed...So you are not taught about it.

Neo: "There are only two possible explanations, either no one told me, or no one knows."

Architect: "Precisely."

But you all are taught how to read, write and do math...and you can also choose to figure out how the system actually operates...

Are you just a cog in a machine that is doomed to break down or are you somthing more...You are no more or less than the builders of the machine.

They figured it out 1000's of years ago...actually discovered it...You can too...



The current Japanese Yen started out in 1955 as a coin with a diameter of 20mm, Thickness of 1.2 mm and a weight of 1g constructed out of 100% aluminium and fixed under Bretton Woods from 1949 to 1971 at 360 Yen to 1 U.S. Dollar...from 1971 to now the Yen has gained strength. the Yen is 117 to 1 U.S. Dollar.

Japan's public debt to GDP is 176.2% of GDP and their Discount rate is 0.5%

The US public debt to GDP is 64.7% of GDP and the US Discount rate is 5.25%
Japan is in far worse shape than the USA but their currency has gained strength...

"The Yen was introduced by the Meiji government in 1870 as a system resembling those in Europe. The Yen replaced the complex monetary system of the Edo period, based on the mon. The New Currency Act of 1871 stipulated the adoption of the decimal accounting system of yen. The yen was legally defined as 0.78 troy ounces (24.26 g) of pure silver"

From the 1792 coinage act...

"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 sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard silver."

Or 0.72 Troy ounces of pure silver = 1 Dollar.

But then..."The Gold Standard Act of the United States was passed in 1900 (ratified on March 14) and established gold as the only standard for redeeming paper money, stopping bimetallism (which had allowed silver in exchange for gold). It was signed by President William McKinley in accordance to the beliefs of the Republican Political Party."

That's where the US Dollar as defined in 1792 ceased to exist...The Bank of England was the main promoter of the so called GOLD standard...And backed the Gold Republicans against the Silver Democrats in 1896 and 1900 to get the above passed.

It's the FIX in the LONDON FIX...

"LONDON - The financial district known here simply as The City is a hotbed of the loyal Order of the Masons, who have a penchant for strange rituals. But Masonry has nothing to do with an odd little ceremony performed twice every day in an office at N.M. Rothschild & Sons Ltd.

Five men talk on their phones for 10 minutes or so, and then lower tiny Union Jacks sitting on their desks. And that's it. The London gold fixings is complete. It takes place at 10:30 a.m. and 3 p.m., like clockwork. The same ceremony has been performed the same way, in the same place, and with mostly the same firms participating since the first gold fixing was enacted at Rothschild in St. Swithin's Lane on Friday, Sept. 12th, 1919.

Anachronistic or not, it works to give the market a snapshot of the spot price of gold at a particular moment in time.

When the five representatives met at Rothschild on that first Friday in 1919, gold was fixed at four pounds, 18 shillings and nine pence- about USD$ 7.50 in today's terms. The quoted currency was changed to USD$'s in 1968, but very little else has changed in the intervening 77 years.

The participants at the first fixing were from Rothschild, which chaired the meeting and every subsequent one, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co. and Sharps Wilkins.

International gold trading is an around-the-clock business, with the London Market overlapping those of the Far East in the morning and New York in the afternoon. London bullion traders can make deals from about 7:15 a.m. to 7:15 p.m. But twice a day the representatives meet face to face at Rothschild to trade gold for physical settlement. The dealing unit is a Good Delivery Bar, which must weigh about 400 ounces and conform to specifications set down by the London Bullion Market.

The chairman suggests an opening price, which is reported by the representatives by phone to their dealing rooms. The chairman then asks who wants to buy and who wants to sell and how many 400-ounce bars they wish to trade. If the quantities fail to balance at the opening price, the chairman suggests a higher, or lower one, until a balance is achieved. Then he announces the price to be fixed.

The dealing rooms can alter instructions to their representatives at any time during the proceedings and that's where the tiny Union Jacks come in. The representative signals he is changing his declared interest by raising his flag. The chairman can't declare the price fixed unless all the flags are down. All this sounds very quaint and out of touch with computer-driven markets, but up to 20 tones of gold a day are thought to be traded through the fixing."