VAULT DWELLERS SERVED

Sunday, August 22, 2010

The Kwa Is A Nation Of Undead

You know nothing about modern "economics" until you understand this statement:

The banking system does not work on a system where deposits are the basis for fractional reserve. The banking system works on the basis of loans used as the collateral for more loans.

Read it again. If you don't know what is being talked about there, you will never be able to successfully predict what is going to happen next economically. Forget about what some egghead says about GDP versus wage gains. That's gibberish. It has nothing to do with anything of any significance at all.

The banking system does not work on a system where deposits are the basis for fractional reserve. The banking system works on the basis of loans used as the collateral for more loans.

9 comments:

Anonymous said...

Very true, Tex. It's so important people understand this. Bill Still's work delves into this problem and so do the "Money As Debt I & II" documentaries.

It's thinks like this problem that only shows that the whole country (and the rest of the countries of the world that are the same) are sleepwalking into disaster due to their ignorance and lack of effort to seek out what available information there is.

Andrew said...

This video sums it up as far as I'm concerned.

Unbiblical "religious" practises. Questionable history, shady financial dealings and their infamous sexual preferences.

The founders who fled from Europe must be spinning in their graves.

Anonymous said...

The Erosion of America's Middle Class is a planned event not just the result of bad economic circumstances.
http://www.spiegel.de/international/world/0,1518,712496,00.html

With the article below on Gold the most important concept to grasp is "Gold isn't a commodity"
http://online.wsj.com/article/SB10001424052748703908704575433670771742884.html?mod=WSJ_hps_sections_personalfinance#printMode

oops did we say "3/4 of oil from spill is gone"

http://wireupdate.com/wires/8833/senior-u-s-scientist-rescinds-previous-claim-that-34-of-oil-from-spill-is-gone-says-most-is-still-there/

Just a couple of articles worth a quick look at.
Cheers
J

Anonymous said...

Ah, so Max lives in Paris.

That's sort of a good rule of thumb for validation -

there's a lot of people who make a living out of talking about how United States or Britain are going to collapse.

How many of them put their money in their mouth and actually leave the country, if they fear for their life so much? Not as many.

Curiously Tex, as an Australian, do you see many Americans who come over to stay in your country permanently? How many of them are there who left because of a fear of civic breakdown?

Anonymous said...

Let me know what you guys think of this:

http://www.recombinantrecords.net/docs/2009-05-Amusing-Ourselves-to-Death.html

Anonymous said...

Best description of "bubble" that I've ever read.

Fractional BS Banking.

Anyone who invests in paper at this point is either ignorant or malevolant

I am aware of my broken-record tendencies, but "End of Money and the Future of Civilization" is a must read for future planning.

Credit clearing systems have a future. Debt-based money = morte

OhioDude

Anonymous said...

Yo Andrew

Malachi Martins' "Windswept Tower" is a scary scary book that elaborates on the themes you ref in your post. Read only on a Friday so you have a weekend to recover from the depression that'll follow

OhioDude

Rowan said...

http://kottke.org/10/08/sun-may-affect-radioactive-decay-rates

Vault-OS needs a Sun monitoring system.

Anonymous said...

Very true, OhioDude. Debt-money and fractional BS are all poison and headed for an impact with the provebial fan.

What I wonder is how many people in the media and financial industry know this and are deliberately lying (remember the "summer of recovery" and "green shoots" we were meant to have?) and how many are just misinformed (due to all the lies put out there), ignorant or gullible like the common man but still talking on TV and in the newspapers like they were experts?

The information is reaching far and wide on the internet. I would have thought there was no way all these people could be so unaware of something that touches on their "expertise".

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