December 3, 2008

Fractional Lending And Inflation. How The Magic Money Game Is Played!

by @ 12:02 am. Filed under Business

I’ve been looking for a very long time for a short video that explained fractional lending and the debt spiral it creates. Because often showing you this in video format helps with understanding it better than it being typed out in words. But this video should help you understand why every time the government goes tossing money at problems, it really creates more of a problem rather than actually solving financial issues. This is a game of continually kicking a growing can down the road and hoping that maybe later something might do away with the problem. And the problem only grows.

Please watch the video in full before making comments.

Inflation and the Dollar’s crash

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November 18, 2008

China, Buying Up America For The Kill.

by @ 11:24 am. Filed under Business, Evangelicals Under Attack

While America builds a grave of debt for herself, China is rushing in to pick up the bones.

China Passes Japan as Biggest U.S. Treasuries Holder (Update1)

By John Brinsley and Rebecca Christie

Nov. 18 (Bloomberg) — China surpassed Japan in September to become the biggest foreign holder of U.S. Treasuries, as foreign investors sought the relative safety of government debt as stocks plunged 9.1 percent that month.

Total net purchases of long-term equities, notes and bonds increased a net $66.2 billion in September from $21 billion the previous month, the Treasury said today in Washington. Including short-term securities such as stock swaps, foreigners bought a net $143.4 billion, compared with net buying of $21.4 billion the month before.

China led all foreign official investors in September by posting a net increase in U.S. Treasuries for the sixth month in the past seven, bringing its total ownership close to $600 billion. Japan was a net seller of Treasuries for the fourth month in the past six.

“The details of the report paint a much more positive picture of cross-border investments than expected,” said Michael Woolfolk, a senior currency strategist at Bank of New York Mellon Corp. “China, along with others, is showing more demand than anticipated for U.S. assets.”

Economists predicted international investors would buy a net $27.2 billion of long-term securities in September, based on the median of seven estimates in a Bloomberg News survey.

China leapfrogged Japan, increasing its Treasury holdings by $43.6 billion to $585 billion, the report said. Japan, now the second-largest foreign owner of U.S. government debt, reduced its holdings by $12.8 billion to $573.2 billion.

China Demand

China’s ownership of U.S. government debt has doubled since July 2005, while Japan’s holdings are down from a peak of $699 billion in August 2004.

Foreign demand for Fannie Mae, Freddie Mac and other U.S. agency debt increased from a month earlier. Purchases of long- term agency debt totaled a net $6.2 billion, compared with net sales of $8.7 billion in August.

The Treasury’s figures include both agency debt and mortgage-backed securities and aren’t restricted to Fannie Mae and Freddie Mac bonds. Mortgage-backed securities of Ginnie Mae and corporate debt of the Federal Home Loan Bank System are also included in the report.

Stocks plunged and Treasuries rose in September as Treasury Secretary Henry Paulson negotiated for two weeks with Congress over a $700 billion plan to address the worst financial crisis in 70 years.

The U.K., which through London acts as a transit point for international investors, especially those in the Middle East, bought $30.3 billion of Treasuries, bringing holdings to $338.4 billion.

Let me show you some video of how America’s new largest treasuries holder and likely future largest debt holder treats Christians. Below is a video playlist of 7 short videos. Please withhold comments till you’ve had an opportunity to view them all in full.

Playlist: Abuse of Christians in China

Hold fast to Christ, pray for our persecuted brothers and sisters and pray our Lord returns swiftly. We may have to endure some pain, but the eternal reward is more than worth it.

November 12, 2008

Some Financial Analysts Are Starting To Claim The US Is Headed For Economic Doom!

by @ 1:15 pm. Filed under Business

I’ve already mentioned how America was economically in bad shape and making things worse.

But check out what was said in the exchange in the video on this web page.

I’m just saying, beware of rough water ahead.

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November 11, 2008

No Need For The Government To Watch You, When All The Corporations Already Are.

by @ 12:03 am. Filed under Business

Just an interesting documentary, I thought you all would be interested in viewing.

CNBC “Big Brother, Big Business” Recorded Nov 1, 2006

Please withhold comments till you’ve viewed the video in full.

September 30, 2008

I Might Be Against A Ron Paul Presidency, But You Better Listen To The Man When He’s Talking About The US Economy.

by @ 12:55 am. Filed under Business

I mean, this is the stuff I’ve been talking about, so I have to say when the man is right he’s right.

Ron Paul blasts bailouts 9-19-20 ‘the unconstitutional government- proposal’

Failures have to be allowed to fail, not be propped up with magic money.

Congressman Paul was also on the CNN morning show last Friday. I don’t have video, but please read this short transcript of the interview.

CNN interview With Ron Paul about economic bailout proposal.

Now, one House Republican says that the government is trying to fix a problem that government created using the same ideas that actually created it. OK. He is not just any House Republican. He’s Ron Paul, congressman from Texas, former candidate for president, and a giant among supporters of limited government.

Congressman, good to see you.

REP. RON PAUL (R), TEXAS: Thank you. Nice to be with you.

PHILLIPS: Boy, a lot of drama going on, wouldn’t you say?

PAUL: Oh, yes, a lot of excitement. I wish it weren’t so serious and we could have a little bit of fun, but it is very serious. There’s no doubt about it.

PHILLIPS: Definitely. And my question to you is, this bailout plan, I mean, should the government even be stepping in? Is it lawmakers’ responsibility to bear the brunt of this?

PAUL: Oh, no, it isn’t. There’s a responsibility of government when there are problems like this. Sort of like after Enron, there was a responsibility, but the responsibility was assumed by the state of Texas. A lot of fraud went on, and the people who committed fraud ended up in jail. And the market dealt with the rest.

The company was essentially bankrupt. They had dealt with derivatives. And the company went bankrupt and the stock went to zero. So that’s a good way to handle it.

And Lehman Brothers was handled the same way, and there’s still some products left in Lehman Brothers. And it’s going to be bought up by stronger hands. That is the important thing, that the liquidation of that investment, bad debt, gets over with. The quicker, the better.

But when people make mistakes, it’s not the responsibility of the government to go in and buy these assets that have no value. But the mistakes were made because of so many contributing factors by the government, and particularly the Federal Reserve system.

PHILLIPS: Well, let’s talk about who really is at fault here. I mean, I had and a chance to interview an FBI investigator yesterday. His job basically is to investigate corruption on Wall Street. And he said look, there is no simply no oversight.

The SEC is not doing its job. Other commissions are not doing the jobs. Because when it comes to these high-powered companies, high-paid CEOs, and lots of money, that they are the ones giving big donations to the individuals that are supposed to be keeping an eye on them. And they just don’t want to touch it.

PAUL: Well, it shows that the system doesn’t work. So basically, the preemptive strike of a regulator essentially never works. It didn’t work to protect us against Enron, but the laws against corruption did work. I mean, they committed fraud and they were convicted.

So, I’m not a regulator. I’m a regulator due to the market, but not by bureaucrats who can be bought off.

PHILLIPS: So, Congressman, what do we do? If the answer isn’t regulators, how do you prevent this type of fraud and corruption, and an economic meltdown like the one we are seeing now where taxpayers are suffering tremendously?

PAUL: Well, they haven’t yet. They only suffer because the government has been too much involved in devaluing their currency, and now they want to devalue their currency more. So the most important thing is not to stick it on the taxpayer.

What we want to do is to get out of the way and let the liquidation of debt occur. We are unfortunately doing the bad things we did in the early 1930s. We wouldn’t allow the market to adjust.

Prior to that, we had recessions, but they were never long lasting. Now, since we’ve adopted this principle of regulation and trying to patch together inflated bubbles, it doesn’t work. It just prolongs the agony, and this is what we’re doing now. Instead of a quick correction, what we are going to do is have a situation that’s going to last not a year, but maybe a whole decade.

PHILLIPS: Real quickly, will we see a bailout plan signed off on before the next president takes office? What do you think?

PAUL: Yes, I’m pretty pessimistic, so I would say they’re going to pass it. Yes, they’re going to pass it. They’ve already spent $700 billion, and that’s a drop in the bucket. And they want another $700 billion.

They originally asked that it not be reviewed by any court. They’re very, very bold, and they’re socializing this nation and bankrupted this nation. They’re going to destroy the dollar before it’s all over if we don’t take this in hand.

PHILLIPS: Congressman Ron Paul.

Always interesting to talk to you, sir. Appreciate it.

PAUL: Thank you.

Now this really is all about temporal money. No amount of money can save your soul. Eternal security comes in knowing Jesus Christ and believing on Him alone for salvation. But it’s interesting watching things transpire and a nation dig a economic hole for its self.

The politicians are going to continue trying to press for the bailout bill until they get it.

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