My apology, in advance, to those of you who were logging in today hoping to find a post on a Treasure that I pass along, such as beautiful Wakaya Island.
Today marks the 13th anniversary of "Black Monday" when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong, spread west through international time zones to Europe, hitting the United States after other markets had already declined by a significant margin. The Dow Jones Industrial Average (DJIA) dropped by 508 points to 1738.74 (22.61%).
The recent "flash crash" that caused a similar drop in stock prices, and the increasing number of Sovereign Nations on the brink of bankruptcy make the likelihood of another market meltdown occurring, very real.
I have a report, dated August 2005, written by a Canadian Asset Management firm that I keep handy whenever I talk to others about how our government has surreptitiously intervened into our stock market, and our entire financial system since the 1987 crash, largely through it's shadowy and privately owed Federal Reserve System.
Leave it to the Canadians (a bulwark of sensibility and straightforwardness) to tell the world the truth about what our leaders have been doing for over two decades of free market manipulation.
If any of you are interested in a copy, please contact me.
Although I no longer have a direct affiliation with a Private Wealth organization, I can certainly refer you to a trusted Financial Advisor who understands the risk of another meltdown and can help you prepare for the next shock wave that will inevitably occur.
Showing posts with label Fractional Reserve Banking. Show all posts
Showing posts with label Fractional Reserve Banking. Show all posts
Tuesday, October 19, 2010
Tuesday, March 31, 2009
The Road Ahead
My apologies to those of you who faithfully follow my daily blog. I took a few days off before the beginning of the new quarter to get together a plan for the next. I mentioned in an earlier blog that I believe the next few months (read quarter) are going to show us whether the economic policies of both the past and current administrations will be effective at getting our world economy back on track, or worsen an already bad situation.
This piece by a noted economist Alan Abelson in this weeks' Barron's is a must read. If what is proposed as part of a Private-Public partnership is successful at removing so called "toxic assets" from bank balance sheets, what happens next? Allegedly, this action will free up credit to new borrowers. But the number of credit-worthy individuals or companies is dwindling due to depressed spending and massive layoffs. Setting aside these "bad bets" and pretending they don't exist is just not part of the solution. The same thing can be said of the GM scenario. Now the strategy is to have an "orderly breakup" of the company by putting all the "good" assets together, and the "bad" assets into another pile, including employee pensions.
We have come to a crossroads in our history, which began as a journey in the last century with the creation on the fractional reserve banking system. We have had several debt related shocks to the system over the last 75 years, but none as potentially damaging as the creation of "financially engineered" product such as the ones AIG sold, and supposedly prudent banks, bought.
As Women of Wealth, you need to be more involved in understanding the financial capacity at your disposal. Many of you have this information kept for you through the activity and control of a spouse or trustee. You MUST get enlightened, before you are shocked by what may occur in your future. This is why I blog. And this is why I set up womenlighte.ning.com. Please use these to put yourself back in control. We are here to help you as individuals, and as a community.
Please consider signing up on our mailing list and in your comments, ask for an invitation to join the WWRG social network.
Until next post, continue to believe, achieve, receive. SDG - JBH
This piece by a noted economist Alan Abelson in this weeks' Barron's is a must read. If what is proposed as part of a Private-Public partnership is successful at removing so called "toxic assets" from bank balance sheets, what happens next? Allegedly, this action will free up credit to new borrowers. But the number of credit-worthy individuals or companies is dwindling due to depressed spending and massive layoffs. Setting aside these "bad bets" and pretending they don't exist is just not part of the solution. The same thing can be said of the GM scenario. Now the strategy is to have an "orderly breakup" of the company by putting all the "good" assets together, and the "bad" assets into another pile, including employee pensions.
We have come to a crossroads in our history, which began as a journey in the last century with the creation on the fractional reserve banking system. We have had several debt related shocks to the system over the last 75 years, but none as potentially damaging as the creation of "financially engineered" product such as the ones AIG sold, and supposedly prudent banks, bought.
As Women of Wealth, you need to be more involved in understanding the financial capacity at your disposal. Many of you have this information kept for you through the activity and control of a spouse or trustee. You MUST get enlightened, before you are shocked by what may occur in your future. This is why I blog. And this is why I set up womenlighte.ning.com. Please use these to put yourself back in control. We are here to help you as individuals, and as a community.
Please consider signing up on our mailing list and in your comments, ask for an invitation to join the WWRG social network.
Until next post, continue to believe, achieve, receive. SDG - JBH
Tuesday, March 24, 2009
Signs (& Sighs) of Life
Two events sparked a rally in the equity markets yesterday - an announcement from the US Treasury Department of a plan to invest in "toxic assets" in a public/private venture. This will, they claim, remove these loans from the banks that now hold them and free up credit. Will the plan work? The answer may never be known, and like the TARP funds of last year, it may be too little, too late. The other positive indicator came from the housing sector, which reported an increase in sales of existing homes last month.
All of the moves by the White House, including a media blitz to help sell the proposed budget package, are designed to prop up falling asset prices which are the main reason we are experiencing the worst recessionary period since The Great Depression. Click here for my prior post on this subject, and a link to great commentary by Bill Gross, of PIMCO. As it turns out, PIMCO plans to invest in the proposed public/private fund. This is a good sign, since we as taxpayers need to see this succeed so that we recoup SOME of the Trillions it will ultimately cost us to get out of this mess. Click here for PIMCO's Bill Gross latest take on what is happening in credit markets, and the outlook for the future.
What matters most during this widely cycling market, is that you stay focused on your individual plan of action, and your broader social biography. Let the "gamblers" continue to go after the quick money. Women of Wealth are NOT gamblers. They invest in their future and the future of their children. And that is the best news of all.
Until next post, continue to believe, achieve, receive. SDG-JBHIV
All of the moves by the White House, including a media blitz to help sell the proposed budget package, are designed to prop up falling asset prices which are the main reason we are experiencing the worst recessionary period since The Great Depression. Click here for my prior post on this subject, and a link to great commentary by Bill Gross, of PIMCO. As it turns out, PIMCO plans to invest in the proposed public/private fund. This is a good sign, since we as taxpayers need to see this succeed so that we recoup SOME of the Trillions it will ultimately cost us to get out of this mess. Click here for PIMCO's Bill Gross latest take on what is happening in credit markets, and the outlook for the future.
What matters most during this widely cycling market, is that you stay focused on your individual plan of action, and your broader social biography. Let the "gamblers" continue to go after the quick money. Women of Wealth are NOT gamblers. They invest in their future and the future of their children. And that is the best news of all.
Until next post, continue to believe, achieve, receive. SDG-JBHIV
Monday, March 16, 2009
The Ides of March + 1, Friday 13th + 3
Well, two traditionally "unlucky" days have passed, and I hope you came through unscathed. Although March 15th was a very unfortunate day for Julius Ceasar, it did fall on a Sunday this year, and very few of us can argue that this "day-of-rest" does not give us a respite as we contemplate the week ahead.
Remember, also, that the Romans used the Ides of March date to mark the official beginning of Spring - a time of renewal and hope. Although the winter is still not officially over by today's standards of seasonal measure, the warming temperatures and singing birds give us a brighter outlook.
For those of you who missed Fed Chmn. Ben Bernancke's interview on 60 Minutes last night, I have included the link here. While he certainly sounded a note of optimism that a depression has been averted, and the recession should end this year and recovery should begin next year, he did caution that this all depends on the stabilization of the banking system. As I have stated in earlier posts, our addiction to the debt drug peddled to us by his predecessor, Alan Greenspan, and the creation of the Fractional Reserve Banking system in the early part of the last century, is just now beginning to collateralize into other areas of our economy and beyond. Click here for a viewpoint by Jacki Zehner, and here for a link to the original oped piece.
I believe the next few months will be critical in determining the course and speed with which we navigate through these troubling economic times. The important thing to remember is that fear and anxiety only complicate the situation and like the superstition of Friday the 13th, most of what will happen to us should not be influenced by past belief, but rather on our willingness and ability to create our own future.
Please take time today to review your Social Biography, and begin laying out the chapters that lie ahead. If we all do this, we will bring about meaningful change, and create a better world for every one.
Until next post, continue to believe, achieve, receive. SDG - JBHIV
Remember, also, that the Romans used the Ides of March date to mark the official beginning of Spring - a time of renewal and hope. Although the winter is still not officially over by today's standards of seasonal measure, the warming temperatures and singing birds give us a brighter outlook.
For those of you who missed Fed Chmn. Ben Bernancke's interview on 60 Minutes last night, I have included the link here. While he certainly sounded a note of optimism that a depression has been averted, and the recession should end this year and recovery should begin next year, he did caution that this all depends on the stabilization of the banking system. As I have stated in earlier posts, our addiction to the debt drug peddled to us by his predecessor, Alan Greenspan, and the creation of the Fractional Reserve Banking system in the early part of the last century, is just now beginning to collateralize into other areas of our economy and beyond. Click here for a viewpoint by Jacki Zehner, and here for a link to the original oped piece.
I believe the next few months will be critical in determining the course and speed with which we navigate through these troubling economic times. The important thing to remember is that fear and anxiety only complicate the situation and like the superstition of Friday the 13th, most of what will happen to us should not be influenced by past belief, but rather on our willingness and ability to create our own future.
Please take time today to review your Social Biography, and begin laying out the chapters that lie ahead. If we all do this, we will bring about meaningful change, and create a better world for every one.
Until next post, continue to believe, achieve, receive. SDG - JBHIV
Wednesday, March 11, 2009
It's "Tick" Season
I attended an event hosted by UBS Private Wealth on Monday that featured a discussion with their Chief Lobbyist, John Savercool. He offered some very well-formed thoughts on where this current administration was focused in terms of programs and legislation. One of the things he mentioned was the possible re-institution of the "uptick" rule, and a suspension of the "mark-to-market" accounting rules that have forced so many Banks to write off huge numbers of non-performing loans.
While the Market responded favorably to these potential changes, there are still a huge number of debt-related issues on the table. Yes, consumer debt - primarily credit card debt - actually rose last month after contracting for almost three. But this is not necessarily a good thing. Perhaps you have noticed, as I have, that more and more people are using credit cards to pay for groceries and other consumables. This would stand to reason because once cash reserves or unemployment checks run out, this may be the only resort for the growing unemployed before they have to resort to food stamps.
Women of Wealth tend not to have these immediate concerns and hopefully you have received good advice from your current advisors and have a Plan of Action to support you during these difficult times. Still the debt that has been created through the liberalisation policies of the Federal Reserve for more than a decade will take a long time to work through - perhaps even decades to come.
Those of you that know me are aware of my distrust of the "Fractional Reserve" Banking system and its "pluck from air" creation of money with no backing (gold, silver, etc). Here is another take on the "quantitative easing" and "de-leveraging" of the banking system in a recent post by Jackie Zehner.
Bottom line is that, in my opinion, we should not be lured into a "sucker's rally" that has caused a temporary uptick in capital markets. Even though Citigroup reported profits for the first two months of this year, there are signs that more debt is about to default.
But don't just take my word for it. Pay a visit to your local supermarket and find out for yourself.
Until next post, continue to achieve, believe, receive. SDG - JBHIV
While the Market responded favorably to these potential changes, there are still a huge number of debt-related issues on the table. Yes, consumer debt - primarily credit card debt - actually rose last month after contracting for almost three. But this is not necessarily a good thing. Perhaps you have noticed, as I have, that more and more people are using credit cards to pay for groceries and other consumables. This would stand to reason because once cash reserves or unemployment checks run out, this may be the only resort for the growing unemployed before they have to resort to food stamps.
Women of Wealth tend not to have these immediate concerns and hopefully you have received good advice from your current advisors and have a Plan of Action to support you during these difficult times. Still the debt that has been created through the liberalisation policies of the Federal Reserve for more than a decade will take a long time to work through - perhaps even decades to come.
Those of you that know me are aware of my distrust of the "Fractional Reserve" Banking system and its "pluck from air" creation of money with no backing (gold, silver, etc). Here is another take on the "quantitative easing" and "de-leveraging" of the banking system in a recent post by Jackie Zehner.
Bottom line is that, in my opinion, we should not be lured into a "sucker's rally" that has caused a temporary uptick in capital markets. Even though Citigroup reported profits for the first two months of this year, there are signs that more debt is about to default.
But don't just take my word for it. Pay a visit to your local supermarket and find out for yourself.
Until next post, continue to achieve, believe, receive. SDG - JBHIV
Wednesday, February 25, 2009
Our New Direction
Last night our President outlined his vision for the future of our nation as we struggle to rebuild our economic infrastructure.
Part of this vision requires a re-liquifying of the banking system as we know it today. This is expected to cost the US taxpayers trillions of dollars, and may result in the partial or total "nationalization" of many of our largest financial institutions. Many of the experts see this as a secondary priority. The real issue, they say, is the continued decline in asset prices - houses, commercial real estate, etc. Many of these assets are backed by "financially engineered" products that have no intrinsic value (tied to "hard" assets like gold, silver). As part of the modern day Fractional Reserve monetary system, bankers have been able to create assets out of nothing. Opponents of this system call it "Pluck From Air (PFA)" banking. While this post is not meant to go into detail on how it is done, I do want to point out that this system has been made more impactful and dangerous with the introduction of "shadow banks" (Hedge Funds, Private Equity Funds, etc.). The rise of these alternate sources of capital are now themselves falling victim to rapidly declining asset values, creating a snowball effect and putting further pressure on the Feds to bail them out, as well.
Why have I spent so much time in this blog on the subject of modern day banking? Because the root cause of this latest financial crisis has been around for a long time (back to the Federal Reserve Act of 1913). But deeper than that, the current banking crisis can be traced back to biblical times when "honest scales and honest weights" were used to conduct trade.
Somehow, we have managed to stray from this "righteous trade" system of commerce. It has taken centuries, and various forms of dishonesty to get us to this point.
Let us be the first generation, to commit to acting responsibly, and restore honesty and integrity to our banking system. As President Obama said last night "The time to take charge of our future is here."
Until next post, continue to believe, achieve, receive. SDG- JBHIV
Part of this vision requires a re-liquifying of the banking system as we know it today. This is expected to cost the US taxpayers trillions of dollars, and may result in the partial or total "nationalization" of many of our largest financial institutions. Many of the experts see this as a secondary priority. The real issue, they say, is the continued decline in asset prices - houses, commercial real estate, etc. Many of these assets are backed by "financially engineered" products that have no intrinsic value (tied to "hard" assets like gold, silver). As part of the modern day Fractional Reserve monetary system, bankers have been able to create assets out of nothing. Opponents of this system call it "Pluck From Air (PFA)" banking. While this post is not meant to go into detail on how it is done, I do want to point out that this system has been made more impactful and dangerous with the introduction of "shadow banks" (Hedge Funds, Private Equity Funds, etc.). The rise of these alternate sources of capital are now themselves falling victim to rapidly declining asset values, creating a snowball effect and putting further pressure on the Feds to bail them out, as well.
Why have I spent so much time in this blog on the subject of modern day banking? Because the root cause of this latest financial crisis has been around for a long time (back to the Federal Reserve Act of 1913). But deeper than that, the current banking crisis can be traced back to biblical times when "honest scales and honest weights" were used to conduct trade.
Somehow, we have managed to stray from this "righteous trade" system of commerce. It has taken centuries, and various forms of dishonesty to get us to this point.
Let us be the first generation, to commit to acting responsibly, and restore honesty and integrity to our banking system. As President Obama said last night "The time to take charge of our future is here."
Until next post, continue to believe, achieve, receive. SDG- JBHIV
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