Why Banks ALWAYS Fail
QUESTION: Why do banks see to always fail?
ANSWER: The business model is inherently flawed. They borrow short-term on demand and lend long-term. They take your demand deposits in your checking account and lend for mortgages out 30 years or speculate with your money like M.F. Global who Obama protected proving my point – Democrats & Republicans are the same. They make noize on the social issues only – but when it comes to money, they smile with their hand out for crumbs from the bankers.
There is ALWAYS a bank failure because the business model is simply unsound. The way to correct the problem is simple. Long-term lending must be matched ONLY with term deposits – never demand deposits. I have advised banks as well as been on the board of a bank. So I have been there, seen it all, and understand it clearly.
The real problem is that the bankers sell the government debt and threaten them that if they do not bail them out every time they lose money, government goes down. Total blackmail. That has to STOP. Only when bankers are separated from that function will we see the banks become legitimate institutions. Restore Glass-Steagall, which Robert Rubin and Goldman Sachs worked so hard to repeal, and we will start to secure the financial sector again. But these guys have really destroyed Western society. Their bailouts have led to massive debt increases, deflation on an unprecedented scale, which is why gold continues to go down, and government implodes raising taxes and hunting everyone down for a spare dime. The bankers are the reason for bail-ins and everything you expected for retirement is gone.
The bankers have also been the reason for opening the door to the greatest risk in economic history. The full escalation of the national debt was not because of SOCIALISM to create programs for the poor, but bailout for the bankers after the leverage and they blew themselves up EVERY time! These people are dangerous to society for they are undermining everything and ensuring you will have no pension of future.
QUESTION: Why do banks see to always fail?
ANSWER: The business model is inherently flawed. They borrow short-term on demand and lend long-term. They take your demand deposits in your checking account and lend for mortgages out 30 years or speculate with your money like M.F. Global who Obama protected proving my point – Democrats & Republicans are the same. They make noize on the social issues only – but when it comes to money, they smile with their hand out for crumbs from the bankers.
There is ALWAYS a bank failure because the business model is simply unsound. The way to correct the problem is simple. Long-term lending must be matched ONLY with term deposits – never demand deposits. I have advised banks as well as been on the board of a bank. So I have been there, seen it all, and understand it clearly.
The real problem is that the bankers sell the government debt and threaten them that if they do not bail them out every time they lose money, government goes down. Total blackmail. That has to STOP. Only when bankers are separated from that function will we see the banks become legitimate institutions. Restore Glass-Steagall, which Robert Rubin and Goldman Sachs worked so hard to repeal, and we will start to secure the financial sector again. But these guys have really destroyed Western society. Their bailouts have led to massive debt increases, deflation on an unprecedented scale, which is why gold continues to go down, and government implodes raising taxes and hunting everyone down for a spare dime. The bankers are the reason for bail-ins and everything you expected for retirement is gone.
The bankers have also been the reason for opening the door to the greatest risk in economic history. The full escalation of the national debt was not because of SOCIALISM to create programs for the poor, but bailout for the bankers after the leverage and they blew themselves up EVERY time! These people are dangerous to society for they are undermining everything and ensuring you will have no pension of future.
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Gold in Currencies
QUESTION: If Europe is going down the drain before the US (the lack in confidence in EU governments), isn’t it expectable that the gold price will rise in Europe first? If that isn’t so, will the dollar always be the first refuge and gold the last one, rising only after the US collapses?
Thank you very much and best wishes.
ANSWER: To make a bull market, whatever you are looking at must rise in terms of all currencies. As the dollar rises, gold will fall in dollar terms, however, it will rise in terms of euros, yen, $A etc. The bull market never unfolds simultaneously. Gold did not exceed the 1980 adjusted for inflation which stands at $2300. Silver did not exceed the 1980 in the cash market. So in dollar terms, the hype was loud, but there was no place to go.
The dollar bears only see the US must collapse. Walk out on the street and ask people if they think the dollar will collapse. They will look at you like you are crazy. They are spending money. Enjoying the summer. Having a very good time. The rise in the dollar is NECESSARY to turn the US economy down. That is why they formed the G5 in 1985 because of the high dollar that dropped exports. Politicians see that as costing jobs.
Physical gold is for the individual investor. Big money cannot and would not park there – they need regular income. Plus the gold market is a tiny fraction of the financial markets. Big money moves in and out on a phone call. They cannot be bothered with buying bricks of gold, storing them, shipping them, insuring them all for no cash flow.
Whatever your native language, if you encounter someone from a foreign land, it does not make them an idiot because they cannot speak your language. Finance is the same. You judge the world based upon your beliefs – that is what is true in your world. To someone else, their world is different. To each his own.
We ALL act in our own self-interest. If gold rises in dollars doubling in price but the dollar fall by 50% against the Euro, to a European gold is unchanged. We all respond to the currency base in our mind like language. Until we ALL see gold rising in ALLcurrencies, there will not be a sustainable bull market.
It is coming. Just be patient.
QUESTION: If Europe is going down the drain before the US (the lack in confidence in EU governments), isn’t it expectable that the gold price will rise in Europe first? If that isn’t so, will the dollar always be the first refuge and gold the last one, rising only after the US collapses?
Thank you very much and best wishes.
ANSWER: To make a bull market, whatever you are looking at must rise in terms of all currencies. As the dollar rises, gold will fall in dollar terms, however, it will rise in terms of euros, yen, $A etc. The bull market never unfolds simultaneously. Gold did not exceed the 1980 adjusted for inflation which stands at $2300. Silver did not exceed the 1980 in the cash market. So in dollar terms, the hype was loud, but there was no place to go.
The dollar bears only see the US must collapse. Walk out on the street and ask people if they think the dollar will collapse. They will look at you like you are crazy. They are spending money. Enjoying the summer. Having a very good time. The rise in the dollar is NECESSARY to turn the US economy down. That is why they formed the G5 in 1985 because of the high dollar that dropped exports. Politicians see that as costing jobs.
Physical gold is for the individual investor. Big money cannot and would not park there – they need regular income. Plus the gold market is a tiny fraction of the financial markets. Big money moves in and out on a phone call. They cannot be bothered with buying bricks of gold, storing them, shipping them, insuring them all for no cash flow.
Whatever your native language, if you encounter someone from a foreign land, it does not make them an idiot because they cannot speak your language. Finance is the same. You judge the world based upon your beliefs – that is what is true in your world. To someone else, their world is different. To each his own.
We ALL act in our own self-interest. If gold rises in dollars doubling in price but the dollar fall by 50% against the Euro, to a European gold is unchanged. We all respond to the currency base in our mind like language. Until we ALL see gold rising in ALLcurrencies, there will not be a sustainable bull market.
It is coming. Just be patient.
Bank Rage in Ireland Shows the Suckers for What They Are
Irish leader Enda Kenny has said he understands “the rage and the anger” of Irish people on Monday (24 June) following a leak of taped conversations by two Anglo-Irish bank bosses which indicate the Irish government was conned into propping up the bankrupt lender.
The taped conversations, obtained by the Irish Independent newspaper, between John Bowe and Peter Fitzgerald, who led Anglo-Irish’s capital markets and retail banking arms, respectively, indicate the Irish government was duped into pumping €7 billion of emergency cash into the bank on the assumption that it would plug the lender’s funding crisis.
But the €7 billion figure was just a ruse to get the government to put “some skin in the game,” with the bankers assuming that politicians would have no choice but to provide further emergency funding once they had been “pulled in”.
US Iron Curtain Is Coming in New Immigration Bill for All Americans
Orrin Hatch Author of Biometric Exit System for All Americans
GOP Senator Orrin Hatch introduced an amendment to the immigration bill that is the start of the American Iron Curtain requiring a mandatory biometric exit system at airports with the highest volume of international air travel, that even Senator Jeff Sessions (R-Ala.) wanted to do nationwide but without success previously. You will no longer be allowed to freely leave the the USA. Government will track you on a biometric basis. What’s next? DNA? This is not Paper Please! This is Papers Now!
There is new legislation that will impose not only a lifelong ban on Americans traveling if they renounce their citizenship, but if you have any money, they now want to impose an huge exit tax to leave. This is all about them getting money. Every bill is designed to strip citizens of their wealth to keep the debt rolling.
Senator Barbara Boxer (D-Los Angeles) in her highway bill to “reauthorize Federal-aid highway and highway safety construction programs, and for other purposes” includes Section 40304 of the legislation which states that any individual who owes more than $50,000 to the Internal Revenue Service may be subject to “action with respect to denial, revocation, or limitation of a passport”. So in other words, if they think you owe any money, they can revoke your passport, put you under investigation, and you cannot travel until they say you do not owe anything. What does this have to do with highways?
Eduardo Saverin could be BANNED from the U.S. after renouncing citizenship to save millions in tax. Former Massachusetts U.S. Attorney Michael Sullivan said that he wants the U.S. Attorney’s office to begin the process of revoking Boston Marathon bombing suspect Dzhokhar Tsarnaev’s U.S. citizenship claiming it is a benefit or some sort of gift. The problem is becoming that to be a US citizen is rapidly becoming the worst possible citizenship to have in the world for there seems to be some invisible hand behind this plot to enslave everyone as economic machines to feed government not much different that the plot in the MATRIX serious where humans are kept to generate energy for the state. Everything is about getting taxes right down to hunting offshore business to going after bullion refiners demand they account for every gram of gold coming in and out.
The entire excessive NSA gabbing everything is all about taxes. If we look at what has been going on there is clearly an invisible hand at work to confiscate wealth to keep the debt rolling. These people are absolutely destroying the world economy and liquidity is still at about 50% of 2007 levels demonstrating the impact of hunting down citizens with assets anywhere. It would be nice if they just printed money and chose the HYPERINFLATION route and we could compensate with investment strategy. But these people are not going in that direction. They are hunting citizens and legally revoking everything that was once the defining quality of a free society.
- Americans are taxed on their worldwide income. “The United States is the only major country which taxes based on citizenship rather than residency.”
- Americans need to tell the IRS about any bank account or company they have anycontrol over. It might sound like no big deal, but add a few small investments to your portfolio and all of a sudden you’ve got a big headache on your hands. What makes it even worse is that…
- The US tax code is terribly complex, confusing, and expensive to comply with. This is the case even for highly experienced professionals in the game for decades.
- Many banks and overseas professionals won’t deal with Americans. It’s looking like this is about to get a lot worse. “The foreign banks also must provide an annual report of the account balance, gross receipts and gross withdrawals of the U.S. account holders.”
Senators Casey and Chuck Schumer have argued to impose the penalty for citizens leaving the USA for tax reasons should be a lifetime ban from re-entering and a special Draconian tax on your net income after already paying taxes.
In 1996, the U.S. changed its immigration law to include a provision to “name and shame” renunciants… In 2008, Congress enacted… an “exit tax” … effective June 2008, U.S. citizens who renounce their citizenship are subject under certain circumstances to an expatriation tax, which is meant to extract from the expatriate taxes that would have been paid had he remained a citizen.
Slavery was supposed to be outlawed. But that only applied to private people owning others. The whole slavery thing began with the King selling you into indentured servitude for some stupid crime like taking an apple. You were put on a ship and sent to the American colonies as cheap labor for the plantation owners. When you sentence was up, you then were released but you were not given passage back to England. After the American Revolution, the Dutch replaced the criminal labor trade with Africans and the criminal were then sent to Australia.
Charles Hibbert quoted the sentence read in court in his Roots of Evil where the Judge in England said:
“Because you have committed this offence, the sentence of the court is that you shall no longer be burdened with the support of your wife and family. You shall be immediately removed from a very bad climate and a country overburdened with people to one of the finest regions of the earth where demand for human labour is every hour increasing and where it is highly probable you may ultimately regain your character and improve your future.”
(Roots of Evil, p145)
Everything they do is about money – not safety or really terrorism. This is legislative Terrorism against the people for they are not America, they are the government which is not even a reflection of the American Society any more than the Communists represented the people.
Hopefully, economics will cause our Western Governments to crash and burn just as the Communists in 1989-1991. Their greed is unsustainable and they are destroying every aspect of what use to be a free society. We tried monarchy – it became oppressive. We have tried republicanism – it has been corrupted like that of Rome. All that is left is a Greek Democracy were we all vote on all spending from home on computer. The 2 year brief term was voluntary for a Congressman. Allowing reelection they need way too much money to constantly run and so that creates lobbyists and corruption and then they introduce bills like this. Bureaucracy must be eliminated. Privatize everything for we will not have the unfunded pension problem.
We need a real democracy. No more of these people pretending to represent us when they do not – they exploit us and are now closing the Iron Curtain around us all. There are people who can see the dots and connect them. They got out of Germany. Those who claim it will be ok, they were given the free showers. Blind faith is never good. We have neither trust nor verification. We have no free press. There is nothing left of our free society but a hologram of its former self.