66% of the Economy is Already Electronic & 99% of Money is Electronic

 

QUESTION: I loved your mention of how our money is not “printed”. You are THE ONLY financial expert to mention this. And you can’t understand our economy without understanding Electronic Money. I researched this 3 or four years ago and came up with, .003 physical currency vs the rest as Electronic Money. I later stumbled across an article on the same subject by an economics professor who put the ratio at .0003 physical. SO, who/where/how much/ and by who’s authority is E money created? E money is how the economy is propped up, and the amount is in TRILLIONS UPON TRILLIONS.

ANSWER: That is about correct. However, it is actually much worse. About 40% of the value of the paper currency of the United States circulates outside the USA. In fact, about 40% of the debt is also held outside the USA. Continue reading

They’re Coming to Take Away Your Cash

The stories are all over the Internet. Governments are forcing us into a cashless society. Supposedly the pretext is terrorism, and the real reason is to take more control. No doubt more power appeals to politicians, and banning cash seems like the next step after mandatory reporting of cash transactions. However, I think there is a more serious driver than simple power lust.

A more compelling case is that cash banning is the logical follow up to bail-ins. Most people think a bail-in is when banks steal your deposit. So it seems to make sense that governments want to force people to keep their cash in the bank. Then they are easy meat for the next bail-in. Continue reading

Sweden cuts rates below zero as global currency wars spread

Morgan Stanley warns that the world is revisiting the “ghosts of the 1930s” as one country after another tries to steal a march on others by devaluing first

Sweden has cut interest rates below zero and launched quantitative easing to fight deflation, becoming the latest Scandinavian state to join Europe’s escalating currency wars.

The Riksbank caught markets by surprise, reducing the benchmark lending rate to minus 0.10pc and unveiled its first asset purchases, vowing to take further action at any time to stop the country falling into a deflationary trap. The bank presented the move as precautionary step due to rising risks of a “poorer outcome abroad” and the crisis in Greece.

Continue reading

Short US Government Bonds ‘Right Now’: Jim Rogers

Being that the USD is being printed up without end, it’s soon to be worthless as well as everything paper that is valued in Dollars. Bonds fall into this category.

With the Federal Reserve and now Bank of Japan printing massive amounts of money, billionaire investor Jim Rogers told CNBC’s “Closing Bell,” he is shorting U.S. government debt.

“It’s all artificial what’s going on right now,” Rogers said. “The Federal Reserve is printing money as fast as they can. The Bank of Japan said ‘we’re going to print unlimited money.'” Continue reading

Assad offers Moscow, Beijing bonds worth $30bn. Russian warships off Syria

Announcing he is not responsible for the safety of UN observers on their way to Syria if they don’t obey his rules, President Bashar Assad has set in motion steps for prolonging his war on the Syrian people rather than abiding by a truce. debkafile discloses he offered Moscow and Beijing $30 billion worth of government bonds for a massive injection of funds to replenish his depleted war chest.

And at the UN Security Council, while Russia’s Vitaly Churkin in a surprise turnabout voted with the West on a UN observer team to secure the Syrian ceasefire, Moscow quietly sent warships to Syrian shores to secure the Assad regime.

The heaviest outlay for keeping the massive Syrian war machine turning over is on fuel. Countless tanks, self-propelled artillery, thousands of trucks and tank transporters are constantly on the move from one rebel flashpoint to another, reinforcing embattled units and ferrying troops, equipment and ammunition.

Full article: Assad offers Moscow, Beijing bonds worth $30bn. Russian warships off Syria (DEBKAfile)

Iran Didn’t Bring Down the RQ-170. A Chinese Cyber Whiz Team Did

After establishing the cause of the crash of the unmanned American spy drone, the stealth RQ-170, over Iran on Dec. 4, 2011, the US is continuing to use that type of UAV, Air Force Chief of Staff Gen. Norton Schwartz said on Jan. 13. Without disclosing the results of the investigation, he said, ”The key thing is that it’s an ISR system that we use to provide capabilities to the combatant commanders and we’ll continue to do so.”

US officials reject Iran’s claim that it brought down the Lockheed Martin RQ-170 Sentinel but remain tight-lipped about what caused the crash.

Both American sources, while insisting that the RQ-170 was still in commission, never said it was again flying over Iran.

DEBKA-Net-Weekly’s military and intelligence sources offer three disclosures to explain the publicity strategy pursued by US officials:

1. The Americans know Iran did not bring the RQ-170 down because their intelligence agencies discovered the culprits were a Chinese cyber warfare team which seized control of the drone; Iran was given the passive role of being told where and when to hold out their arms to catch it.

The Obama administration is keeping this information to itself so as not to compromise US economic relations with China, especially in a presidential election year.

– Republican contenders would seize on this information as valuable campaign ammunition against President Barack Obama. They already accuse him of being soft on North Korea and he cannot afford to have US inaction against China added to their campaign fodder.

American needs to keep China on its side

– The US is casting about for levers to bring Beijing aboard the oil embargo on Iran. Wednesday, Feb. 1, German Chancellor Angela Merkel traveled to China at Obama’s request to try her hand at persuading Beijing to at least reduce its crude purchases from Tehran, if not join the embargo. Getting into a row with China over the stealth drone would not help persuade its leaders to cooperate in sanctions against Iran but might risk bringing US-Chinese relations to an unprecedented low.

– Washington needs Beijing’s cooperation in the global financial crisis and even more, to shore up the dollar’s value as an international currency. China holds a large part of its reserves in US government bonds and dollars. A diplomatic falling-out between Washington and Beijing might well spur the Chinese to turn away from the dollar, as Moscow, Tehran and New Delhi are in the process of doing. They have indicated their willingness to take this course on past occasions.

2. US intelligence has not discovered whether the Chinese cyber warfare team is still in Iran or has gone, leaving behind instructors and high-tech equipment for Tehran to counter US drones and planes on its own. Another RQ-170 flight over Iran might provide some answers, but President Obama is flatly against this. If Iran – and China – were to get hold of a second advanced American UAV, he would have no option but to hit back at the Islamic Republic – or even at Chinese targets in Iran.

Full article: Iran Didn’t Bring Down the RQ-170. A Chinese Cyber Whiz Team Did (DEBKAfile / War Sclerotic re-blog)