I have written here and on my other financial/government topics about the need for the Bank of International Settlements to raise capital requirements to prevent hyper inflation. This also has the benefit of causing debt to languish on the books of countries, making the international banking cartel richer and richer. In fact, the cartel profited on off balance sheet ponzi housing scams, then on government bailouts, and now by scaring the sheeple into more bond purchases as the government takes on more debt burden.

From Bloomberg we have this assessement of bank capital requirements:

"The Basel Committee on Banking Supervision, a 35-year-old panel that sets international capital guidelines, plans to propose a “new minimum global liquidity standard” by the end of this year, according to a Sept. 15 statement from the Financial Stability Board, which is coordinating financial regulatory reform on behalf of the Group of 20 nations."

The effect of this minimum global liquidity standard is to protect the bank bondholders, the rich folks who through hedge funds lever up these bonds for an almost guaranteed juicy return. So much for free market capitalism and risk. The rich take virtually no risk in this New World Order.

I would not mind the government and Fed scaring people into buying treasuries if the investment were fair. Actually, they would not have to scare people into bonds if there was a fair return. Besides the pure manipulation of this activity, the yields are terrible, and the savers and cautious people are being hurt by unfair low returns. It is important that savers be rewarded for savings and speculators who are pushing assets like oil up through the roof be chased from the markets. As it is the treasury bond costs are inflated, as in a bubble, while yields or interest remain ridiculously low. Bill Gross, the bond expert at PIMCO has said that the value of all assets in the USA are overpriced by 15 TRILLION dollars!

Here is what is happening. The speculators, due to this continual reflation by the Fed, are driving up the prices of all commodities and artificially raising the standard of living for all of us. The average guy cannot afford this continual rise in prices. The Fed is going to have to defend the dollar because the Achilles Heel of their reflation policy is asset inflation. I have spoken about that asset bubble forming here.

One of these days the government is going to have to defend the dollar, or we will have 5 dollar gas. The Fed needs to pop asset bubbles to protect average Joe American. They cannot keep pumping up this economy artificially if it results in a massive rise in commodity prices. That will kill the recovery anyway. The Fed is stretching the rubber band and the consumer will break if this reflation behavior continues.

If you read on you will see that I don't believe this reflation of assets can continue much longer.

We are facing deflation folks, thanks to the New World Economic Order. Inflation is a head fake. If FASB plans are implemented, the Mark to Market, or M2M rule, will be reimposed on the banks, causing the economy to tank and the stock market to crash. This time there may be no fake inflation play to create another bubble.

FASB is an accounting arm of the Bank of International Settlements. More can be learned about FASB and Basel 2 here. Just be aware that the desire to trim back the banks and ring speculation out of the markets is not complete. Just as banks in Japan were saddled with greater reserve requirements, right when they needed to bring Japan out of a deflationary spiral, so will the banks in the USA be saddled with Mark to Market once again. M2M was lifted, causing the March 2009 stock rally. It is about to be imposed again. Be sure to read the link.

Update:In the 1970's, we inflated and it didn't kill the economy. America was not a debtor nation in the 1970's. But all that has changed. We owe foreign governments a lot of money, as they have purchased large amounts of our treasury bonds. The have a vested interest in America's continuing responsibility to keep the dollar strong. As I have discussed in Deflation Threat the Federal Reserve Bank is boxed in. On the one hand, the strong dollar will continue a deflationary slide, and cause the banks to be stuck with toxic debt, unable to inflate their way out of that debt.

On the other hand, the risk of inflation will bring high interest rates on property that is already too expensive and not yet deflated. That risk will hurt the value of treasury bonds and put the USA at risk of credit rating decline. That will raise borrowing for all of us. So, the Fed is in a box, and who knows how it will work out. Ben Bernanke is a student of the Great Depression, and he certainly would like to inflate. Housing and the Chinese make that very difficult to do.

Could we have another Great Depression? Possibly. Could we have 10 to 15 years of deflation and little demand for money and loans? Quite probably. Hunker down and save your dollars as they may get more valuable as time goes on. If Bernanke is replaced at any time the fed may get reckless. But as of now they are not prone to do so under Bernanke.

Right now the stock market has no relation to the real economy. It is being driven up artificially by the program trades of Goldman Sachs and the hedge funds that ride the investment bank's coattails. Be careful with stocks!

Update: The federal Reserve received a Subpoena from Congress today. The fed did not give up freely information proving that Bernanke ordered Paulson to instruct Ken Lewis of Bank of America to purchase Wachovia. Lewis was threatened with his job and he testified to that effect. The Federal Reserve is a collection of twelve PRIVATELY held banks who lend money to the United States. They may or may not own more of the debt of the United States than does China. They are raping the United States by conflicts of interest. and Obama needs to do what Andrew Jackson did, chase out this private bank and issue currency free from debt.

In 2009, the 9th Circuit Court of Appeals ruled that the fed, though an agent of the United States government, is actually owned by private interests. The court said that the local banks each own the fed banks in their area. If that is the case, the New York Fed, which is the most infuential fed, is owned by JP Morgan, mostly. That is a huge conflict of interest, and of course, JP Morgan the man established the Fed in 1913 as a representative of the Rothchilds, the premier European central bank owners. So, though once removed, it could be that the Rothchilds actually control the New York fed without direct ownership! 

America has lost her sovereignty to this cabal of international bankers, the Federal Reserve being the facilitator of this system in the United States. America is going to be impoverished in debt because of this cabal. President Obama has shown so far that he is no Andrew Jackson, as he allows this system to increase the debt of the United States. This cabal, through the Fed, controls the money supply and makes agreements with international banks without congressional oversight.

Update: On CNBC with Maria Bartiromo, Dr Robert Mundell has recommended replacing the dollar with a world wide currency controlled by the international monetary community. Seems there are a lot of professors in the hip pockets of the international monetary community. Dr Mundell, why don't you tell us what the dangers are of this development in the comment box on this website? Why aren't you concerned about freedom and economic independence? Don't you care that the American Revolution was fought to rid our country of Bank of England oppression? We are on the brink of having complete control placed upon us by the Money Changers of the world. See http://bank-abuse.com which addresses these concerns.

Recently, this one world powerful economic system has committed a verifiable fraud upon the middle classes in many corners of the world, but mainly in the United States. As the United States failed to increase the standard of living in the last 20 years, the bankers saw an opportunity to offer lots of credit to consumers. Because Americans have a much higher level of consumer spending related to GDP, at 70 percent, and this GDP is the biggest in the world, then this middle class had the power to make or break economies the world over.

Give this middle class easy credit because wages have not improved, and you can maintain the spending, and maintain a world economy based upon that spending. But this credit offered was a fraud committed against the unsuspecting American public through the Basel II agreement. This agreement allowed the banks to keep risky investments hidden off their balance sheets. This fraud allowed the banks to offer easy credit, liar loans, alt a loans, option arms, subprime and other easy credit.

This toxic debt was then packaged up and sold to unsuspecting investors the world over and to our pension funds, county governments and even school districts, and upon the bond packages were piled derivative insurance betting against or for the success of the bonds. So then, if a bond was worth a dollar, as an example, the derivative risk of failure of that bond was leveraged 10 to 1. Massive losses occurred for these investors.

The fraud that was put upon the borrowers in the United States was put upon the investors who bought the bonds and the derivatives. Many of these markets have frozen up, and now there are no markets and these assets are very difficult to value.

And guess what folks! Because all this economic voodoo failed, you the taxpayer have to bail out the banks who made all the money before they failed. The taxpayer will pay trillions of dollars to try, and maybe not succeed, to fix this broken fraud system. If this one world fraud doesn't upset any of you, then I guess we don't know what will.

There are links below that show how the one world government works. I would hope that you bookmark this site for a reference to these links. When you read these benign articles about international bankers you need to keep in mind the fraud that they have delivered to the American people. You will see these scumbag bankers in a very different light.

This is an important quote and research from a link below:

{The tsunami of credit that burst onto the scene after this “Basle Accord” helped save America from a recession, enabled it to fund a war, sleep walked Europeans, politically into the Euro Zone and attempted to copper fasten the artificial state called the European Union. This crisis is no accident it was premeditated and internationally agreed upon.

If you don’t believe the pre-meditation involved please read the quote below from the Wall Street Journal, Nov. 27^th. 2007:

“In 1998 the Basle Accord created the opportunity for regulatory arbitrage whereby banks could shift loans off their balance sheets. A new capital discipline that was designed to “improve” risk management led to a PARALLEL BANKING SYSTEM whose lack of transparency explains how the market started to seize up.

The “originate-to-distribute” model REDUCED THE INCENTIVE for banks to monitor the CREDIT QUALITY of the loans they pumped into...}

Update: on 4/2/2009 British Prime Minister Gordon Brown proclaimed a "New World Order". Let's consider the consequences of this new world order. Clearly, the international bankers created this crisis, with their Basel 2 off balance sheet banking. Now the same international bankers are "solving" the crisis with more extension of credit in their power, with more efforts to manipulate the stock markets, to proclaim a comeback from the economic abyss, that they created. The problem with this is that they are still raiding the treasuries of America and Europe to fill their pockets, when they scammed the middle classes and small investors throughout the world with liar loans, easy money, and toxic investments. They made money on the scam and now they are making money through stealing from the taxpayers!

While it is not a tidy one world political government, we have, or are very near having, a one world economic system. International bankers control the world. This control will increase as other middle classes become more dependent on credit. If a person from a third world country thinks that credit cards are a good thing or long for the credit freedom that exists in the United States, don't go down that path. Don't become dependent on credit cards. Fight the international bankers, the World Trade Organization and stay solvent as a household.

Certainly do not bid on housing, do not bid on any commodity. If the price is too high go without. Rent the commodity, or use a different commodity. The pushing up of prices ultimately hurt the consumer who sees his wages stagnate. The goal of the international bankers (through the Council on Foreign Relations in the USA) is the debt control both of individuals and governments. This is a New World Order spoken of by both David Rockefeller and George Bush I.

Don't you think it odd that Newt Gingrich and Bill Clinton are both members of the same organization (CFR) that wants to undermine the sovereignty of the United States by consolidating banking power through international banks too big to fail? Certainly the point man in this war against the consumer by the banker class is Goldman Sachs. I hope you are able to take a peek at this condemnation of this very badly behaving company.  

How did this one world government come to pass?

Leading wealthy families have wanted to stabilize a dangerous world. While in and of itself, that seems like a noble endeavor, the result has also included a powerhouse of economic power that has leverage over governments the world over. This leverage normally was exerted by a financing of government debt. This gave international bankers great influence over governments. But also governments benefited from the free trade, although there are arguments abounding that the United States did not benefit. Some have said that our invasion of Iraq for oil was an invasion born out of economic weakness.

It is my view that it will be difficult for the American public to recover. It will be difficult for the entire world. Many governments have pinned their hopes for recovery on war. I certainly hope WW3 is not the answer. I believe that once we get what is a phony bubble type recovery, the world will bail on the dollar, and inflation will be a major problem. Save, look at gold, and mainly watch out for bubbles that can turn on a dime and steal your wealth.

And if you want to sting this system just don't pay your mortgage, credit cards, etc. Just don't buy in the stores and the resulting commercial mortgage meltdown will crush these banks. If you have a favorite store, then spend cash only in that store and don't use a credit card.

It is time for a grassroots movement to spank these bankers like they have never been spanked before. If you can do a little bit, like maybe taking a thousand dollars out of a bank, you will ultimately make it impossible for this plan to work. If the plan doesn't work, the US government will default, and then we will grow from the bottom up. The defaultees will be the international bankers and we can rock their world. Lets do it.

Disclaimer, I am not a financial advisor or a lawyer. This information is for educational purposes only.