General Stock Ideas

[gfp927z]

Ombow, Here's an excerpt from an article from 2011 that I was trying to locate, and finally found it (see below). Though the author's predictions haven't been entirely accurate, the section on debt forgiveness by the banks was especially interesting.

I don't think Rickards has addressed debt forgiveness specifically, but with the SDR, the ability of the banksters to do creative sleight of hand could be almost limitless. In creating trillions of new SDRs out of thin air they might be able to inflate away the value of the world's debts, and with that accomplished, remove a dozen zeroes from the price of an SDR and re-peg it to gold. Voila, the world's debt is back down to manageable levels.

In the past, the IMF has functioned like a vacuum cleaner - 1) getting countries into debt with loans, and later 2) sucking up the country's resources/assets in exchange for debt relief (asset stripping). The IMF itself doesn't get the assets, these go to the big multinational corporations that are owned by the same people who own the IMF (ie the banksters).

So what might happen with the SDR process is that they will come to own everything in the world in exchange for removing the debt and saving the world from the crisis. These guys deal in debt and always have. Even in Biblical times they had a debt forgiveness every 7 years.


>>> The Big Finale


http://www.thecactusland.com/2009/11/what-qe3-will-look-like.html


The New York Times recently reported on how banks were reducing the principal on thousands of performing loans by about 50% in exchange for small increases in interest rates and new, clean promissory notes, with no MERS involvement. As long as the Federal Reserve “adjusts” the reserve requirements for the bank to reflect half of the money that the bank created as “disappeared”, then for the bank, it’s no harm no foul. They are off the hook for the same amount that they reduced for the borrower, and the small adjustment in interest rate recaptures some of the lost future interest earnings from the smaller loan size.

This solution serves two absolutely critical functions for the banks and the 1% that control them. First, the banks morbid balance sheets are wiped clean, marked to market and made pure. No more zombie banks threatening the world. Second, it frees up vast amounts of consumer income to re-charge the economy, create jobs etc.

The second part of the QE3 will be the ‘public debt crisis’. Act I was the S&aP downgrade and AIG (government owned) lawsuit against Bank of America which by a wild coincidence all happened on the same "Black Monday" as the European Central Bank beginning quantitative easing by purchasing Spanish and Italian bonds. Act II will see a few very large banks being ‘nationalised’ in both the US and Europe, (Bank of America and SocGen for example) and a massive mortgage principal reduction of about 50% will follow as the President can nationalise banks without congressional approval through the “orderly liquidation authority” or OLA provisions under Dodd-Frank. Act III will see the US $14 trillion, as well as the Italian, Spanish, UK, Japanese etc. public debt being halved in exchange for balanced budgets and reduced social spending. The $50 trillion or so in US unfunded liabilities will be wiped out in a new “social contract”. Some student loan and Third World debt forgiveness will be thrown in for the full Kumbaya effect.

All of this will emerge out of a new “Bretton Woods” type of agreement that will be followed like the World Cup, Dancing with the Stars, Eurovision, the Superbowl, and the rest of the circus events meant to keep the plebs entertained. The Euro, doomed to failure, will escape the fangs of a new dark age and emerge triumphant with the Ode to Joy playing in the background. Logic will overcome chaos and a new age of enlightened corporate slavery will begin. The only difference will be that the dollar will be replaced by a new reserve system that spreads ultimate control over more than one currency.

Barack Obama will emerge as the new Franklin Roosevelt, the reluctant revolutionary who saved the world. Prosperity will return and the holders of the dollar, euro and yen debt while not avoiding a nasty haircut, will in exchange get a world willing once again to buy hand over fist again their oil and the products of their manufacturing base. All of this will take place in a massive drama worthy of Hollywood (because it actually will be written by Hollywood types), keeping the sheeple glued to their televisions, talk radio etc. They will cheer when it all finishes with the good guys winning, just as they did when Bin Laden was killed, and when “major combat operations” ended in Iraq.

Will the masses demand to know how banks can simply create and destroy money with a few clicks of a mouse? Will they insist on dismantling the Fed and halving the size of the Federal Government? Will they not rest until all their soldiers are brought home and the war mongers who started these conflicts brought to justice?

Unfortunately, no. They won't ask any questions that can’t be explained away by the talking head de jour on Fox or MSNBC and the charade will continue, the matrix intact, for another generation to try to dismantle.

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