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alstry (35.09)

The Most Interesting Time In World History

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November 24, 2010 – Comments (10)

From a Legal Standpoint that is.......

How do you determine property rights when money is essentially counterfeit......

Let me explain.....legally speaking, money MUST be something that is created or printed as a result of production or an advance for future production.......the former is simply money being an alternative for the direct barter transaction allowing people much greater latitude for trade.....the latter, is a loan advancing money in exchange for future production....

Counterfeiting money is a crime because it is viewed as taking another's production without any value in exchange.....and in order for their to be a valid contract, BOTH parties must exchange something of value.  You can counterfeit money by simply printing money on a piece of paper.....

you can also create the similar effect of counterfeiting by making a loan KNOWING OR SHOULD KNOWING that the borrower can't pay back.......essentially creating money without any production or value behind it.....

Over the past ten years....the banking system and the shadow banking system has created tens of trillions of dollars of loans that it knew or should have known that would NEVER be paid back......and once the banks started cutting back credit....it became mathematically certain the loans would never be paid back......

Effectively the vast majority of currency in circulation today is the product of a fraudulent loan....so our financial system is now infected with tens of trillions of dollars of assets that really have little or no value......

and the only reason the system continues to function is because the system is counterfeiting even more money to conceal the fraud......such as bailing out bankrupt companies with more debt....lending bankrupt public homebuilders with more debt......allowing banks and pension funds to lie about their assets.....

As money is the method we transact for goods and services......who actually owns what will be a huge legal problem once stuff hits the fan.

My guess is we will shut down the whole financial system as more and more start to protest the unfair allocation of counterfeit money.....

I think Gross gave us the first warning calling money a Ponzi Scheme....Buffett followed it up with his mocking letter.....Taibbi, Black, Denninger, Tvakoli, and others have been sounding the alarm.

Based on the protests here and in Europe.....and tensions rising around the world.....it becomes a very convulsive question on who has the moral and legal right to consume when money is simply counterfeit......?

How do you give a politician a salary but not a citizen....when the money paid is simply counterfiet money......how do you determine who gets the right to the printed money when really nothing is backing the money? 

Why should students have to borrow to get counterfeit money but bankers get it for free?  Why should public homebuilders get free money but private homebuilders get nothing?

Again....the issue goes to the core of our system.....who actually owns anything when the consideration for the contract is fraudulent?

When such disagreements can't be solved peacefully...there is only one alternative left.

10 Comments – Post Your Own

#1) On November 24, 2010 at 11:27 AM, alasker (< 20) wrote:

Hey Alstry:

I was thinking about the days when I was a factory rep. One of the factories I represented had their USA union members train their mexican counterparts before shutting their USA manufacturing plant. Makes me appreciate the fact the commerce clause was supposed to be for interstate- not free trade with the rest of the world. 

Do you also think its strange that people spend their time in front of a screen trading numbers (stocks) that does not add much benefit. Even though I have a 401K & 403B I dont really trade individual stocks anymore- it makes my head hurt.

 

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#2) On November 24, 2010 at 11:35 AM, EnigmaDude (92.69) wrote:

There is an ancient Chinese curse that loosely translates to something like:

May you live in interesting times!

So I blame China for all our problems.

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#3) On November 24, 2010 at 11:45 AM, alstry (35.09) wrote:

alas....

I find a lot of things strange today......

I speak to attorneys, doctors, judges, scientists, business people, bankers etc....

Few really can comprehend the nature and extent that most of the assets in our 401Ks and retirement accounts are essentially valued on the foundation of a Ponzi Scheme....

Absent fraudulent lending and fraudulent valuations.....the cashflow and values of everything we have would evaporate in short order....

My guess is that is why Buffett wrote his letter.....basically saying we are all screwed unless government bails us out with counterfeit money.....

and right now, government is only bailing out a few with counterfeit money raising anger and agitation all over the place....

the bailout is a fraud......and Buffett and Gross know it.....

you can see the system collapsing all around us....

a few months ago, the European banks went through a stress test and all was fine.....today, they are insolvent needing more money....

why, because the stress test was based on fraud.....and any bailout now is based on fraud.....leading to only more distress going forward.

The same is true here....you work in health care.....most of the health care dollars comes from government......and that money is simply printed today and no longer borrowed....

In a few days, I will post my last blog for a while....at least a few hours anyway.....providing the date when I think the whole banking system around the world will collapse or WW3 will break out.....

I think these are the only two likely choices left.

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#4) On November 24, 2010 at 12:16 PM, alstry (35.09) wrote:

THE WORLD IS GETTING TIRED OF BENNY'S COUNTERFEIT MONEY.....

CHINA, RUSSIA QUIT DOLLAR

 

THIS IS VERY SIGNIFICANT....as more and more abandon the dollar....everything we buy will get more and more expensive....

and as an IMPORT based consumption economy....IT WILL BE VERY DIFFICULT FOR US TO RAISE REVENUES....

collapsing incomes....evaporating savings....skyrocketing prices......the mathematical consequence of Benny The B's Zombulation policy....

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#5) On November 24, 2010 at 12:32 PM, donggan wrote:

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#6) On November 24, 2010 at 12:58 PM, alasker (< 20) wrote:

Hey Alstry:

I know my income from comes from borrowed money and I know the game will be up soon. Most of my colleagues have no interest in philosophical discussions regarding healthcare's future. Truthfully I am a single guy and wouldn't mind working in a small clinic. I told you 90% of the patients pay with medicare and the other 10% is half private insurance and half medicaid/private hybrid.

Its also hard for someone like myself to justify purchasing a home if I make 50K- take away income taxes, annual cost of owning a car I just paid off, food, property taxes I would have that alone equal rent... there is no income left for a mortgage. I can see how you came to the conclusion of housing for free. I remember in when I lived in a college town in sweden there was government housing 5 stories high and half a mile long the students lived in. They were very dark but you sure could pack people in- it was crazy - I wonder if that's our future. 

Another thing i find strange is that our US dollar bills are federal reserve notes- not treasury notes. Just makes my head spin that the treasury gives money (future productivity) to the big international banks who loan it back to the government at a higher interest rate- but the big banks issue notes to the people- not the treasury. Thinking about how it works makes my head hurt- I suppose its about confidence and what people agree has value in commercial transactions.   

 

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#7) On November 24, 2010 at 2:14 PM, JerseyShoreGirl (< 20) wrote:

Is it time to convert dollars, 'backed' by empty promises, to hard assets?

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#8) On November 24, 2010 at 2:29 PM, alstry (35.09) wrote:

It is not that easy...we live in a financial economy.  Everything functions off of dollars.  All private property rights are a derivative of dollars.

We are a consumer economy based on dollars.....and if the dollars have no value, we can't consume and we have essentially no economy.

How do you transport assets when gasoline is $100K per gallon?

Why do you think I created Alstrynomics....I was analyzing the end of a world as we knew it....in prepartion for the coming of the Digital Age....

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#9) On November 24, 2010 at 2:40 PM, JerseyShoreGirl (< 20) wrote:

but given the ponzi scheme monetary policies and the latest developments with China, doesn't that mean the dollar is destined to go down in value? .. things will be more expensive, etc.  ... so wouldn't it make sense to seek safe harbor in assets that actually have value and would (most likely) go up in value as others seek real value as well ....

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#10) On November 24, 2010 at 9:24 PM, alstry (35.09) wrote:

value to do what?

please watch the video on my next post......

would good would gold have been following Katrina?

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