Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

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Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

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FDIC wants your retirement cash to save banks: Bloomberg

FDIC wants your retirement cash to save banks: Bloomberg

“The FDIC is constantly looking at structures where we can get the greatest opportunity to tap into capital that we have not had the success reaching through previous disposition methods,” FDIC spokeswoman Michele Heller said in an e-mailed statement. “We welcome and work

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Canadian government admits recovery never happened

Canadian government admits recovery never happened

“Not only did their stimulus fail to create the jobs of tomorrow, it also failed to protect the jobs of today,” Scott Brison, the opposition Liberal Party’s spokesman for finance issues, said by telephone. "Most of us were shaking our heads in disbelief early last year w

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japan meltdown

“First, Japan will have to stop buying US and Euro bonds. Next, they will have to repatriate funds back to Japan for reconstruction. Third, the Japanese will have less money to fund wars started by the US.”

Bill Gross of PIMCO has stopped buying US bonds. If the Japanese have no money to buy these bonds, will the US finally default on its crushing debts? Or, will generous Harper donate Canada to its neighbor, like the way he gives billions to Hamid Karzai?

This disaster is going to cost Americans dearly. Due to the Japan earthquake, the American government will soon have to substantially raise interest rates to keep attracting borrowed foreign cash to run the government.

The U.S. federal government’s debt is over $14 trillion with about two-thirds owed to the people, businesses and foreign governments who bought Treasury bills, notes and bonds, wrote financial writer Kimberly Amadeo, About.com Guide.

Of the total foreign holdings ($4.3 trillion), China owns $907 billion and Japan owns $877 billion – money Japan now needs and is expected to want back right away to rebuild its earthquake devastated economy.
Even before the Japanese 8.9 quake, “the large US federal debt was like driving with the emergency brake on ” and further slowing the U.S. economic recovery.

This highlights a problem with our economic model of debt financing. Japan has a great resource in it’s people, well educated and industrious they are more than capable of focusing on cleaning up after this disaster and moving forward building a prosperous society. Unfortunately the bankers are involved, they finance these ventures but the funny part is they don’t use their own money to finance it. They use our money, and then only a small fraction of our money to create credit out of thin air. They then charge us for this artificial credit by assigning us debt, and a fee (interest) to service that debt.

This economic model seems to work, but it is nothing more than the grandest ponzi scheme of them all. It is made very complex, and ‘legitimized’ by the collusion with world governments so we accept it. The problem is that like all other ponzi schemes it will eventually run it’s course and bankers will have cashed out by gaining title to the hard assets (land, infrastructure, etc.).

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