Category: Money

Our money has been corrupted’

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History Money

The CME is just a Giant Financial Casino

Over The Counter Derivatives What Are They?

So how big is the Derivatives Market Most people who follow the derivatives say that the amount can be as high as one quadrillion? Let us take a look at what derivatives are, these are acutely just bets. On underlying Securities or Commodities to try to insure the value of their products. But today these are No different than a financial Casino.

A Small Cash Amount Controls Much With Risk

With financial derivatives you just put a small percent down to control a much larger amount of paper. With a derivative of the notional price for that derivative moves in a direction away from the position that you took then you need to come up with money to cover, this is called a Margin Call.

What the Futures Markets were Created to do

Originally when derivatives were created, they were a kind of insurance mainly used by Farmers in order to protect their profits or the cost of growing their crops. The farmers could take a position contrary to the value of their crop. In other words, if the value of their crops was less than normal or expected, then the bet placed in the derivatives market was the opposite, so they could collect on that investment thus balancing out.

Its Out of Control Now!

But what has happened over the years since the inception of the Futures Markets is that many more players have gotten involved. You may be thinking so what? Well now days Banks and even Pension Funds have gotten into this game.

They have done this because as their normal investments like Bonds began to pay less they required more money to keep up with the payments that they needed for their pension beneficiaries. Today these banks bet on interest rate derivatives. Now can you begin to see the problem here? Derivatives are a way to achieve leverage and the banks should not be involved in risky products like those in the derivatives markets in my opinion.

Are Banks Gambling With Our Money?

Banks especially have the ability to rig these markets because they have virtually unlimited supply of money since in a Central Banking System, banks can go to the Federal Reserve Window and get Fiat money at let’s say 2 percent, and then take that money and place bets in these derivative markets. In other words they can use their power to manipulate these markets. And we already know what happens when manipulation takes place in these markets it will not end well.

Final Words

In my opinion what has been created is nothing more than a giant financial Casino. And we all know that in a casino you don’t always win. That is all I want to say at this time on this subject, but I recommend that you get better informed and look into this dilemma.

Categories
History Money

Why They Cannot Defeat Inflation in Times Like These

Why they cannot defeat inflation in times like these is because they have violated the original premise of what money is. Let me explain, the reason why they cannot defeat inflation in times like these, is because of the all of the money printing as well as the supply issues. In this article lets take a look at the problem of why so much inflation in these times.

You cannot stop inflation at a time when supplies are dwindling.

If you understand (The Law of Supply and Demand) then you will get that as supply chains freeze up, supplies coming in are reduced.

Currency is the Problem

The actual problem will be that you have the same or more currency that has been created during our so called pandemic, and this currency will be chasing after a limited supply of goods.

What Actually Happens in Times of Inflation?

When this happens people will find that the sellers of their in short supply items, they will require a premium price to part with any of those items.

Especially when they don’t know when new supplies will be available. when this happens it will be very difficult to squash inflation during such a period. Now you should be able to see a little of what is coming! And how this will play itself out. When every you have a lot of dollars chasing after a limited amount of goods inflation will result.

Stay Calm

Something big will come along to fix this, so its important to stay calm as we all will need to ride this out! We should realize that this same thing with paper money has happened many times throughout history. Money generally goes form trading things of value to trading representations of value.

This is as old as modern man. Humans learned long ago to trade with others to get things that we wanted. That is what we call barter, that worked for a while until we learned that it was very in efficient. So we decided to use other things to trade as representations of value namely what we call money.

Money What is It?

Money can be anything that we as humans can agree on. Over time we learned to assign weights and size to things that we would exchange for things of value. Leather, wood, sea shells, even Tea has been used as money in the past.

As time progressed men realized that money needed to be something not so easy to create so that it would retain its value. As it turns out metals like gold fit the bill, since they were not so easy to come by and tough enough to withstand daily use.

This is just enough to get you interested, enough to get you to do some studying as to what makes good money and why those were chosen over Millenia.

Admin

Categories
History Money

Who Took Out The Nord Stream One and Two Natural Gas Pipe Lines?

In case you are wondering about the Russian Pipe Line Sabotages. By now you must have heard about the sabotage that took place recently to two of the Russian Natural Gas pipe lines that were intended to service Germany and other Western European countries.

The Question is Who Did It?

Who is responsible that is the question being asked? Well let us look into this. Was this an act of war? Obviously if it was done on purpose then that would at least make it an escalation to hostilities. I am not attempting to place blame here, just would like to take some things into consideration, and you the reader can come to your own conclusion.

These two pipe lines, Nord #.1 and Nord #. 2 were created to supply most of Europe with the natural gas needed to not only run the businesses of Europe but also to heat the homes of the people of Europe in the cold winters. As you can see in the map the pipe lines terminate in Germany and from there the gas gets distributed to the rest of Europe.

Aftermath of WW 2

At the end of World War 2 the borders of many European countries were drawn by the powers that were dominant at the time. The Allied Countries who fought to win the war, and were considered to be in control. These were the United States, Britain and Russia they were the major victors.

They were seen as the rescuers of Europe, especially since most of the other powers had capitulated to Germany. Now these are the same powers that remain today. These are considered to be the major players, as China stayed out of the war.

Germany the Engine of Europe

Not to say that the other countries in Europe are not also responsible for a percentage of the gross domestic product (GDP) of Europe. It is just that Germany is such a major hub for engineering and manufacturing in Europe.

Having said that, we should note that many important companies manufacture high tech products in Germany to be exported to much of the world.

For these reasons Germany needs a lot of natural gas to run these enterprises. And with the push in recent years for more environmentally friendly means of manufacturing, natural gas was chosen as the go-to energy source as it usually burns cleaner than other forms of energy.

The Dilemma Europe Finds Itself In

So where would they get all of that needed Natural Gas? In steps Russia, Russia being the closest country to Europe with more than enough natural gas above what they consume for their own use. Allowing them to be an exporter of that excess gas to other countries. This also helps their own economy or at least the Oligarchs that profit from this transaction.

Our American media seems to be pointing the finger for this sabotage at Russia. So let us take a look at this, and see if it makes any sense?

Who Benefits?

Whenever there is a criminal investigation generally the investigator will look into who stands to benefit or gain by committing such a crime?

So can go back and take a look at the history of this region. Who the major players are and why they would not want Russia to be the major supplier natural gas to Europe. It seems that these great powers are at odds with each other each wanting to remain the dominant power in Europe.

How Is This Done?

The West no doubt is concerned of what happens if Europe becomes dependent on this Gas Product coming from Russia. What kind of leverage would Russia then have over most of Europe. Because Europe needs natural gas to not only run their businesses with, but also to even heat their homes?

I am not trying to pick sides. It is just that I wanted to give the reader an understanding as to some of the dynamics of this whole complex situation. I hope this article gave you a better understanding as to who the players are, and some of the complexities involved.

Many times the talking heads in media make emotional plies to the public when they have not actually taken the time needed to point out all of the complexities that are actually present.

Admin

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Money

Inflation not about Fuel Cost

Why Inflation is Not About Fuel Cost

Inflation is caused by the currency supply.

The Oxford Dictionary describes inflation as The general increase in prices and the fall of purchasing power and the decline in the value of money. The increase in availability of money resulting in inflation.

So let us take a look at this process. You may hear government types saying that the inflation we are experiencing is cause by Russia and Putin, or some other ridiculous argument.

These arguments are there to confuse the populous. And have know basis in reality.

Inflation Didn’t Just Start Recently

When you realize that inflation has been around for a long period of time, you have to take other things into consideration.

That is what we will do here in this article.

So let us get started, using basic terms what happens when something gets inflated It becomes larger.

OK so we can start with that. Now a little patient is in order, as I do not want to lose you.

For anything to get larger there needs to be more of that thing, we surely can agree with this statement I just said.

Felix Somary in the book ,The Raven of Zurich 1986, he is quoted as saying: The State Alone is Responsible for Inflation, Inflation without government is indeed impossible.

So now we have to take a closer look at this and follow this to the conclusion.

Felix was a brilliant man who advised kings and governments.

So we should firstly assume that he knew something about what he was talking about.

So we have the fact that only the State can create and allow for Banking Charters to be created, and allow the banks to create money or shall we call it Currency.

What we call money is actually currency, real money retains the purchasing power over long periods of time. That happens because it is something that is hard to come by. Currency; however, does not need to adhere to that pure definition.

It is Currency and not Money

This is the core of the matter.

This currency that Is used in all of our commerce today is not only allowed or authorized by governments and created by Central Banks is what we are lowed to use period.

If you were to try and create your own private notes or I O Us and circulated them as money, just see how quickly you would wind up on the wrong side of the law if you did that.

Who is in Charge

So now that I have clearly made the argument that only governments can cause inflation, so we need to look at the why, and who benefits.

You’ve no doubt seen countless crime movies and you know that whenever a detective wants to solve a crime he or she will look for the M.O. The motive, or who had to gain by committing the crime.

Did you Know?

Did you know that even under Stalinism, 1924-1939, it wasn’t until the Soviet Unions New Economic policies introducing gold as basis supporting the rubles, at 50,000 rubles to an ounce of gold did their economy rebound? TRAGEDY AND HOPE pg. 248

The Crime Scene

Now we will look at who benefits from this inflation thing we are concerned with here.

You see nothing in our modern world is ever as simple as it seems at first glance. We need to dig deeper to find the answers.

We all know that governments have expenses, things that they promised. And we should know that over time governments make more and more promises to their constituents. And we also know that all of these promises require money or currency to pay for them since people will not work for free, they want to get paid for the work they do.

Can you start to see what why this is all happening?

The more people go to government and ask for things the more currency needs to be created in order to satisfy those requirements.

Now in business their is a law that’s called, The law of supply and demand.

What this law states is that the greater the supply of something the less it cost, and the less there is of something the more it will cost. That is the jest of it.

So here we have I believe discovered one area of the cause for inflation.

In order to give the people what they are asking for, much more currency needs to be created.

I know this is getting pretty long, but there is still more to cover.

I think I will leave it here because I already made my case that inflation is not caused by higher fuel costs, that is just B.S.

Thanks for reading, I will continue with this at a later date in the meantime you can watch Maneco 64 a good person to learn from.

By: Joseph Sanchez

https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

Maneco 64 a good channel to watch

Categories
Money

Why Inflation Makes You Poorer

How Many Times Have You Heard Someone Say? The Statement, “The Poor are getting poorer and the Rich are getting richer.”

I am sure you heard that before, but what they do not tell you is why that is happening. What are the mechanisms causing this phenomena.

So I will explain that to you here. What happens is that the investments that the Rich Person can afford will take advantage of inflation. So that the inflated price of the asset; however, those higher priced assets become much more difficult for the poor person to afford.

Now a basic explanation of inflation is in order. To give you a layman’s explanation: Lets say that you have a large pot of soup, and in it you have chicken, celery, carrots and various other vegetables. At the beginning the soup is very nourishing. But now since you are sharing it with many others so you add more water to the pot of soup, so you begin to have less of that powerful nourishing soup.

So you get the idea to add water to the pot, and now it looks like you have more additional soup. The problem is this soup with the added water is not as nourishing as the original soup originally was.

This may not be a perfect analogy, but you can get the Idea. A similar phenomenon happens with the money that we have.

The money we have gets printed and created in larger and larger amounts, and like the soup example, the money becomes weaker and can’t buy as much as what it once did. Now at first this doesn’t cause to much of a problem for those who got the money first since they are usually invested in things that can adjust for this loss of purchasing power. But for those who are poor in our societies the opposite happens with the inflation or loss of purchasing power.

The Fix

The only way to fix this situation is to have a new Monetary System, a system that actually helps the money to retain it’s purchasing power. For this to happen the money needs to be interchangeable with an asset who’s value either doesn’t vary or if the asset becomes harder to come by and thus more expensive, well then your dollars rise in value the same as the asset.

Under our current monetary system this is not the case. Those who have small amounts of money only see their purchasing power lowered as time goes by and they can’t catch up. It’s impossible for them because they don’t own those assets that I mentioned earlier that do keep up with the inflation rate.

You Can Begin to See the Dilemma

I have actually explained the problem to you and also given you the answer in this short article if you were paying attention. This is why the Rich get richer it’s because they invest in assets, they may buy gold, real-estate, companies etcetera. You may be wondering why would they buy companies? the reason for that is that most of these companies can adjust the pricing of their products to account for the inflation rate.

And the reason they buy assets is because as the inflation rises the price for these assets rises with it thus protecting them from the loss of purchasing power.