by Tom Dennen
August 28, 2013
It's Amazing How
One Common Denominator
in The Middle East Wars is Ignored.
The Only Nations Left There
with Their Own Central Banks
It is common knowledge that the entire western world is as near as dammit
total bankruptcy, with only two other political entities still
operating with their own central banks (and in the black):
It's also common knowledge that "only a war"
can get us out of the current global debt trap…
An internal, publicly-owned
Central Bank issues the nation's currency,
sets the repo and interest rates and monitors the money supply needed to
drive the economy, which is the ease of access of product from manufacturers
to consumers using 'money' as a medium of exchange.
The nation's businesses and government borrow from the central bank, and any
interest incurred is returned to the national fiscus and spent on
service delivery and the business of government, which is the well being of
A central bank can also issue asset-backed scrip to raise emergency funds or
sell long-term investment funds as Treasury Bonds, again, backed by hard and
One of the largest financial 'trading assets' is the mortgage bond debt.
A mortgage is a long-term financial commitment and the 20 or 30 year debt
incurred can be sold at a discount to investors willing to wait that time
for their money to yield returns as mortgages are paid off.
Meantime, the mortgage lender has new cash in hand (although much less that
the total 20 or 30 year mortgage yield) for further lending into or
investing in the economy.
If on the other hand, a nation's money supply is 'fiat' or paper currency
borrowed at interest from a foreign bank and further, that paper is not
backed by gold or other 'hard' assets, a part of the nation's GDP is spent
'servicing' the debt incurred over the interest and not on service delivery
or infrastructure maintenance.
What has happened in the world is a repetition of several other debt-based
economic collapses over the centuries, all the result of many fraudulent
financial practices like securitizing 'troubled assets' by pooling them
with Triple-A Mortgage
securities, but particularly by
interest rates called usury.
Once anyone, including a nation, has fallen into the 'debt trap' a 'modern'
false economy kicks in - borrowing more money to pay off the interest -
called Keynesian economics, which only 'works' up to the point where
the consumer base stops growing.
You can't get more money from for the same products from the same number of
people unless you raise your prices, in which case the consumer will turn to
his employer for higher wages and the 'push-pull' inflationary cycle starts.
There are many other factors involved if an economy strays from the basic
rule of income "more must come in than goes out", but the most common is
fraud that government turns a blind eye to like the sub-prime fraud that
Bush Administration actively supported to the point of
assassinating' the governor of New York,
Elliott Spitzer, for attempting to rally the nation's other
governors to legislate against the practice.
Once that 'borrowing to pay interest' mistake is made, the "Debt-to-GDP
Ratio" must increase until all GDP revenue is being used to
service debt and basic infrastructure collapses…
Or we have a war...
This is literally the deadliest economic flaw of all - to
deliberately waste huge mineral and human 'assets' only to destroy them as
quickly as possible in order to build or hire more of them, employing more
people and thus generating a 'recovery' - because the money to fight a war
has to be borrowed and a nation drops further into debt.
By the end of a major war and for a few decades after, the populations on
both sides have been stripped of their savings and property and are offered
credit with which to 'rebuild'… starting the 'Boom-Bust-cycle'
all over again along with the new debt incurred by the war - America is
still paying war debts from the beginning of the last century.
The only respite in the current situation is that the world is now aware of
the system's total inadequacies and will hopefully write a true history of
these events, pass it to the next generation and thus prevent another wave
robbery, depression, destruction and
...only to repeat it again.