TFC Wednesday 11 August 2010: DBS / Ellen Hodgson Brown JD

[Helphand]

TFC Wednesday 11 August 2010: DBS / Ellen Hodgson Brown JD

http://iamthewitness.com/audio/Ellen.Brown/TFC.SMITH.ELLEN.BROWN%2011-08-2010.mp3

0:00--10.00
Looking at a large depression, not a recession, spreading round the globe.
Ellen Brown's website records {Commonwealth} Bank of Australia being undermined not long after its founder died / Bank of England involvement.
US Presidents murdered by the money power. Need to deal with the criminals at the top. Her 3rd interview, 60k downloads of last one with the discussion group.

Her book "Web of Debt" presents the thesis that for 100s if not 1000s of years societies have known 2 competing money systems, 1) government issued money for benefit of the community, 2) money borrowed into existence {from private parties} which carries an interest burden which interest is not provided for in the existing money supply inspiring further borrowing.

EB: Each US colony had its own paper money scrip but that was part of the problem, best in Massachusetts where the colony owned a bank. In Pennsylvania the bank lent money to the farmers at modest interest, the government of Pennsylvania also issued some money on the side by spending it into the economy for public purposes to cover the interest element so no debt spiral. Commonwealth Bank of Australia operated honestly and prudently for 80+ years, though diverted in 1923 but was recovered in 1937 and funded the Govt in WW2 and made low interest loans to farmers and homebuyers, until it was privatised. Likewise Bank of North Dakota.

10:00--20.00
Candidates are running on State bank platform and legislative Bills are pending eg in Illinois, Washington State, Michigan's is being drafted.
DBS: danger of the banksters exerting their influence despite the expressed will of the people?
EB: Govt. austerity measures and reducing money supply by paying off debt is wrong and destructive, seems intentional. Quantitative Easing: does nothing to the money supply, USD are swapped for bonds held by the banks as reserves for loans. Banks are not making loans for many reasons, including no good borrowers, but not because they don't have enough reserves.
Fed will buy any bonds falling due, good as cheapest way of rolling over given they allow a discount rebate to the Govt.

DBS: ECB has 31% of its foreign reserves in USD, the USD is a world reserve currency; central banks are reducing their USD holdings and those USD will be repatriate to the USA; that will be hyperinflationary. System will fail maybe time is closer than thought.

EB: doesn't see Chinese holdings of USD (1trillion 200bn) flowing in, would be good if they DID spend their USD in the USA. Need more money in the system. Money supply isn't expanding, Fed is trying to expand money supply but the money is going into bank reserves in exchange for bonds so reserves basically staying the same which does not encourage borrowing). Someone from abroad buying would get more money into the economy.

20:00--30.00

DBS cannot think of anything the USA makes that a foreigner would want to buy.... agriculture is only 1% of [GDP].
EB: economic depression in Michigan, malls are empty. 1893 and 1907 US depressions were indeed used by JP Morgan as justification for bringing in the Federal Reserve to manage the money system and the draft Fed Bill was worded to obscure the reality of Wall Street being behind money issuance.

DBS: revised capital accords of 1990s relaxed reserve requirements enabling massive gearing and increased lending.

30:00--40.00
EB: need the promissory note that goes with the relevant mortgage, given mortgage securitisations the mortgages were packaged and more homeowners are defending foreclosures saying the plaintiff has no standing to collect.

DBS: the US Quantitative Easing program was for paying off banks' counterparties not helping the people. 4.6trillion USD admitted could have given 30k each to every American.

EB: QE is swapping USD for bonds, same amount of value in the system. Fed buys the bonds from 22 select dealers, no hyperinflation going on, USD is highest today since December, hyperinflation fears would not have led to this result. Japanese have been doing QE for a decade and they have no hyperinflation; shows 14trillion USD debt could be turned into 14.2trillion of USD and no interest would be due on it. To get the economy moving the money would need to be spent into the economy eg by State banks like in the Roosevelt New Deal which created jobs in dam building etc.

DBS: there is however inflation in commodities, foodstuffs, a lagging inflationary effect.

40:00--50.00
Deflation for the next 2-3 months, by Christmas watch out for odd explosions in prices of gold, foodstuffs etc.

EB sees commodity price inflation as speculation, money being placed in real estate. Also the heat wave in Russia has damaged their wheat crop. Prices, hosing dropping...

DBS: food prices are on the up, likewise fuels and other prices. We are in for "a Weimar Republic type of event coming; and that's what I see happening within the next... I would say 6 months you're gonna see it start and within a year and a half you are not going to recognise North America."

EB: if too much money cash competing for too few goods you'd see house prices going up but that is not happening, the credit is not available, people are rushing into commodities because they are afraid of everything else. Only Weimar style hyperinflation if borrowed from the IMF or in another currency, if in USD can always have power to issue USD and no need to sell it to anyone else at their demanded rates. QE not doing anything for the credit market. Is however keeping interest rate on Federal debt (shouldn't be any on it at all, should be spent interest free into existence...) as long as the Fed can buy US bonds this prevents interest rate going up.

DBS: shadowstats.com suggests actual rate of 6% not 3% inflation. This generates carry trade, that arbitrage bleeds off value from the US citizen. Huge volumes of issued money are being used to acquire assets and place them into few hands...

EB: State owned banks could play Wall Street's game but in the public interest and would make the system transparent, too big to fail would not count and that is what happened with the Commonwealth Bank of Australia / Dennison Miller first Governor the banksters' stooge came over to our side who started the bank without capital because he knew banks lend credit not capital. Was used of trade funding and infrastructure works, WW1 and without actual currency printing but credit creation only.

50:00--60.00
DBS: the banksters will not take these reforms lying down and will resort as usual to murder etc if not outed and neutralised. Grass roots always does a better job than centralised govt. or Wall Street.
EB: lowest unemployment rate in the country and lowest default rate in the country on their loans; they funded rebuilding after flood damage and contrast this with Louisiana... EU countries can do this, in Maastricht Treaty it says a govt. cannot fund itself by borrowing from its own central bank but clause 2 says this does not stop other publicly owned banks which will be treated like private banks, so eg Greece could have a publicly owned development bank creating credit in Euros and use that credit for infrastructure creating jobs which should also generate revenue to pay off the loans. Eliminates interest costs which is 30-50% of the cost of anything the Govt. does.

DBS: a form of that was done through public-private-partnerships but these have been done in such a way the projects did not benefit the people. St. Etienne city's dispute with Goldman Sachs.

EB: people have much more awareness of the world and other peoples that it will be harder than before to deceive population for purposes of war etc.

http://www.webofdebt.com

[Helphand]

Gary North Attacks Ellen Brown On 'Hitler Economics'

http://www.lewrockwell.com/north/north891.html

garynorth @ garynorth.com

"I have spent 45 years dealing with monetary cranks. She is by far the most vulnerable of them all. It is not just that she understands neither economics nor the basics of historical research. None of them does. What makes her so vulnerable is that she is so visible . . . and so consistent. She finally did what was implied by them all after 1935, but which only Father Coughlin had the courage to do. She came to the defense of Adof Hitler's economy. I have waited for a target like her for 45 years."

Good to see Ellen has established her credentials, having provoked criticism from mises.org and its affiliates...

[Fester]

Yeah, he's waited 45 years with his asshole clenched and now he's losing control.  The last thing they want is a large number of people realizing they've have 100 tons of dogshit stuffed down their throats on that score.

Imagine if the average Joe learned that Hitler saved Germany's ass from a situation very much like the current one and he did it by saying "OUT!" to the Jewish banking interests.  Yeah, "Gary North" has been salivating for the chance to deal with hundreds of sheeple waking the fuck up.

Push that old Holocaust shithouse over while we're at it.