Toilet Paper Money

[Lennon]

Over the last weekend the G7, the EU and others decided what was required to solve the credit crisis was a flood of new money - an unlimited wall of "new money" to replace the money that somehow vanished from the banking systems over recent years.

This policy has been tried before but has ended in failure. Every fiat currency since the Romans first began the practice in the first century has ended in devaluation and the eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well...........

Rome — The Denarius
China — Flying Money
France — Livres, Assignats, and Franc
Weimar Germany — Mark

Guarantees just given by the G7 and the EU in an attempt to avert the collapse of the world's banking system include the following:

* Ireland guarantees all bank deposits ($563 billion dollars of exposure)
* France increases bank deposit insurance (exposure unknown)
* Danish government guarantees all bank deposits ($6.5 billion dollars of exposure)
* UAE guarantees all bank deposits ($13 billion dollars of exposure)
* Germany guarantees all bank deposits ($549 billion dollars of exposure)
* Portugal guarantees bank deposits ($28 billion dollars of exposure)
* Australia guarantees all bank deposits (exposure unknown)
* Spain increases deposit guarantees (exposure unknown)
* UK increases bank deposits (exposure unknown)
* New Zealand guarantees all bank deposits (exposure unknown)
* EU guarantees interbank lending in unlimited amounts
* EU raises bank insurance limits by 100% (but still only $68,000 per account)
* UK plans to take majority stake in RBS and big holdings in Lloyds, TSB, HBOS, and Barclays ($60 billion dollars)
*USA $1.5 - $2 trillion total cost for the next year

This $64 trillion will simply be printed by various central banks in the vain hope of sorting out the mess. What makes them think that it will work this time when exactly the same routine has failed over and over again in the past? Over-issuance of a currency is the leading indicator of a currency on the brink.

[MookieBaylock]

How could the value of bank deposits held in Ireland be higher than those of Germany?

Where in God's name are you getting these figures from?

[H.R. Haldeman]

Ireland is different.

[MookieBaylock]

Yes it appears so.

[cyberianpan]

The Fed in particular is printing money at a pretty lunatic rate. US is heading towards some ugly inflation. But right now printing short term money is the right thing to do ... but then the fundamentals must be tackled quickly.

1) Price the distressed assets: my suggestion is lots of game theory simulations, publish the results. Then have open market auction (under some clever rules) and see what happens.

2) Plug the gaps with long term money (re-capitalise)

cYp

[cyberianpan]

Oh ******************** .... the lunatics are in charge of the aslyum

RTE

Eurozone countries can now take 'toxic assets' as collateral for government bonds.

They also want a suspension of the so-called mark-to-market accounting rules to try to halt the slide in the value of bank assets

They are trying to prevent pricing or sale of these toxic assets... the crazy fools intend the money they are printing to be permanent ...



Hyper Inflation here we come... I'd convert any cash to gold pretty pronto...

cYp

[Lennon]

Below are some famous quotes regarding money and central banking:

“Banking establishments are more dangerous than standing armies.” - Thomas Jefferson

"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance." - James Madison

"The modern banking system manufactures money out of nothing. The process is, perhaps, the most, astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint, and un-mint the modern ledger-entry currency." - Major L.L.B. Angus

"Banking was conceived in iniquity, and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen, they will create enough deposits, to buy it back again. However, take it away from them, and the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain slaves of Bankers, and pay the cost of your own slavery, let them continue to create deposits."
Sir Josiah Stamp, (President of the Bank of England in the 1920's, the second richest man in Britain)

"While boasting of our noble deeds, we are careful to control the ugly fact that by an iniquitous money system, we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery."
Horace Greeley

"Whoever controls the volume of money in any country is absolute master of all industry and commerce."
President James A. Garfield

"Those who create and issue money and credit direct the policies of government and hold in the hollow of their hands the destiny of the people."
Sir. Reginald McKenna, former President of the Midland Bank of England

"Paper money eventually returns to its intrinsic value--- zero."
Voltair (1694 - 1778)

"Give me the power to issue a nation's money, then I do not care who makes the law." Anselm Rothschild

[Anorakphobia]

Abandoning mark to market principles?
Every day something more insane appears but this just might be the biggest insanity of all.

All logic, all rationality has now departed.

Governments are now completely caught up in the hysteria.
2 weeks ago Germany said bail outs were not the answer.
Today Merkel signed off on 400 bilion.

People are cheering the creation of trillions of dollars of cash as if it grew out of the ground.
The price of this will be extracted in coming years and it will be horrendously painful.

Today was a day to take stock and ponder the impact of the unprecedented steps taken by Governments and query why they were forced to do something so insane as to bail out financial institutions to the tune of 2-3 trillion.

Instead the morons who got us into this unholy mess threw a 1000 point rally and declared their casino back open for business.

To see greed merchants like Johnny Mack walking into the Treasury today like a peacock when he should be kicked out on his arse is galling.

We are addicted to this crap and morons like Mack imagining they are gurus.
He is no better than Fuld and the rest of the egomaniacs who ran amok on Wall St.

We had a chance to flush out all this crap and the monsters who peddle it but instead we chose to buy a few trilllion more betting chips, give them to these flushed out gambling addict idiots and let them off again.

[Lennon]

Our clueless global leaders have contravened all free market principles in a doomed attempt to paper over the gaping holes in the global financial systems.

Our governments and central banks have once again chosen the easiest short term way of solving a problem by creating more fiat money out of thin air.

This ongoing growth in money supply is creating a huge burden for taxpayers in the medium term. The ordinary people who did not cause this mess are now being forced to pay for it with disappearing pensions and living standards.

The latest outrageous decisions of the G7 to permit even more toxic liquidity to try and hide their failure to properly control the money supply caused by the low interest rate policy over recent years. Shame on them all!

[Squire Allworthy]

We had a chance to flush out all this crap and the monsters who peddle it but instead we chose to buy a few trilllion more betting chips, give them to these flushed out gambling addict idiots and let them off again.

I don't think they are off the hook just yet.