Monday, 4 October 2010

Plato's Cave = Consensus Reality ?



http://en.wikipedia.org/wiki/Allegory_of_the_Cave

The Allegory of the Cave, also commonly known as Myth of the Cave, Metaphor of the Cave, The Cave Analogy, Plato's Cave or the Parable of the Cave, is an allegory used by the Greek philosopher Plato in his work The Republic to illustrate "our nature in its education and want of education". (514a) The allegory of the cave is written as a fictional dialogue between Plato's teacher Socrates and Plato's brother Glaucon, at the beginning of Book VII in Benjamin Jowett's translation and in chapter IX in Robin Waterfield's translation (514a–520a).

Plato imagines a group of people who have lived chained in a cave all of their lives, facing a blank wall. The people watch shadows projected on the wall by things passing in front of a fire behind them, and begin to ascribe forms to these shadows. According to Plato, the shadows are as close as the prisoners get to seeing reality. He then explains how the philosopher is like a prisoner who is freed from the cave and comes to understand that the shadows on the wall are not constitutive of reality at all, as he can perceive the true form of reality rather than the mere shadows seen by the prisoners.

The Allegory is related to Plato's Theory of Forms,[1] wherein Plato asserts that "Forms" (or "Ideas"), and not the material world of change known to us through sensation, possess the highest and most fundamental kind of reality. Only knowledge of the Forms constitutes real knowledge.[2] In addition, the allegory of the cave is an attempt to explain the philosopher's place in society.

The Allegory of the Cave is related to Plato's metaphor of the sun (507b–509c) and the analogy of the divided line (509d–513e), which immediately precede it at the end of Book VI. Allegories are summarized in the viewpoint of dialectic at the end of Book VII and VIII (531d-534e). This relates to the idea of forms as people struggle to see the reality beyond illusion.

Monday, 20 September 2010

Why The “Truther” Fight Will Not Bring Down The Control Mechanism

http://www.collective-evolution.com/

Why The “Truther” Fight Will Not Bring Down The Control Mechanism

As it is becoming more and more obvious that there is a clear control mechanism behind the curtain on this planet, who are manipulating aspects of our experience for their own benefit, there are many souls who are beginning to notice this and in a way, are beginning to do something about it. The souls appear to be falling into a few different groups:

The group who still doesn’t see the control mechanism in place.

The group who sees it, is angry, judgmental, fearful and who wants to fight it.

And the group who sees it and wishes to see it change by letting go of the need for the elite control by not buying into the structures they enforce.

The first two are who I wish to gear this article towards as these are the ones continuing to reinforce it in some ways by the actions they take.

First, know that we are all connected as souls on this planet. As each and every one of us shift our perception and beliefs, it offers a huge contribution to the collective because we are all creating this reality together. One person truly does contribute to change the entire planet. Also, this isn’t an article written to point out that anyone is doing anything wrong or that none of what is playing out isn’t serving. This article is simply a sharing of information coming at a vibration geared towards offering clarity to those who are ready to hear it and ready to begin waking up to who they are and what this is all about.

We started this website almost a year and a half ago and even in the span of time we have been sharing what we share, the amount of changes that have taken place on the planet have been huge. We have seen a huge number of people who never questioned anything begin to question things and a number of people go from being angry about it all to seeing why it’s there and how it has served. More and more we are seeing many step away from the angry fight movement and into an understanding of what is truly taking place on our planet at this time.

I wanted to share a bit about why the “fight” the truth movement is fighting won’t bring down the control mechanism. First we need to understand, those who are in power, the control mechanism itself, is nothing more than a group of beings who have manipulated the human program and created a reality that operates off a certain frequency. With the program they have created they are able to control everyone’s perceptions and reality simply by having them identify with aspects of themselves that are not truly them. This program is essentially what takes over and drives the experience from there on out. This program keeps our true nature and essence disconnected as we think this is all there is.

The program is a multi layered matrix designed to always create enemies out of others and to always make sure the person cannot actually step out of it, for if they did they would be able to dis-empower this program and stop being a part of the control mechanism that’s in place. Through survival mode, fear, destruction, anger, guilt, fighting and judgment, this program maintains its life. This is why the majority of our structures like, religion, health care, financial system, education security etc, are all based around these different thoughts and emotions. By keeping those modalities in the background of each structure, those who continue to buy into it will always be reinforcing the vibration this level of reality requires to stay in place.

That being said, as many people are discovering what this control mechanism is truly about and who’s behind it, they are stepping out of one trap in the matrix and getting involved in another –the anger, the judgment, the revenge, the fight, and the fear. These are all archaic ideas and ways of gaining power back. So often we see “truthers” wanting to prosecute and kill these elite, calling them scum and various names all out of hatred for what they have done. All this is really doing is locking each individual into a vibration that this whole control mechanism runs off of!

The control mechanism will not come down by us reinforcing it with all of our emotions and hatred towards it. It will only come down when we let go of the vibrations that reinforce it! When we begin to find out who we truly are. Our true loving essence as souls collectively creating on this planet. We have not been made victims, we do not have to fight, we do not have to prosecute these people! We simply have to stop reinforcing it and let go of the power we put towards it. The more we fight to take them down, the more we reinforce the power they actually have over us! LET GO! Wake up to who you are as a soul, beyond the ego, beyond the archaic modalities of fighting, protesting and anger towards these elite. Emanate love and be change by dissolving the power the control mechanism has over our reality through these various traps. We are not going to tear it down, it will come down when we begin to emanate a vibration, a level of consciousness where this cannot exist! We must go to this point, not stay here and fight against it.

With love to each and everyone one of you, regardless of what role you are playing and what vibration you are emanating. We are all in this together, connected with the ability to create whatever we wish. Wake up to the power you have as a soul. Your natural state is peace and love, why fight it?

-----

http://www.collective-evolution.com/

Part 2: Why The “Truther” Fight Will Not Bring Down The Control Mechanism

To add a little more to what was discussed in the previous article. The idea had been created that by not feeling fear, anger, or judgment towards the control mechanism it may mean we should do nothing in regards to sharing and pointing out the truth behind the control mechanism. Sharing information as to how the world truly works and the manipulation that goes on is very necessary for the shift we are experiencing.

We are going to have to lift the veils for all to see that the world pulled over our eyes isn’t exactly what we think it is and one of the best ways to do that is to pass on that truth to others through exposing it and sharing.

The main message I wanted to get across in the last article was simply that us maintaining anger and resentment over what the control mechanism does is not conducive, vibrationally, for creating a new world where the control doesn’t exist.

It is still important for souls to share the truth about what is taking place with the control mechanism. Simply, when we share that truth or point it out, we should not come from a point of anger, judgment or revenge when we share and move forward with how we can dissolve it.

The most powerful thing we can do is share this stuff without any emotion backing it that will create more of a lower density within the collective. People can then observe it and be at peace with it but begin to not buy into it because they now have a higher awareness that sees through the manipulation. As they see through it and don’t reinforce it with any other emotions, they begin to take power back and the control mechanism becomes more and more unstable. Simply because we are at peace with it and not angry about it does not mean we are passive and not doing anything about it.

It truly is all about seeing things for what they are but not adding anything to it at the human level. Meaning adding no judgment, no fear no anger etc. One is still able to see it all, and share it all, but from a place where they are assisting to dissolve the old programs vs. continuing to play within them.

Much Love
Joe

Wednesday, 15 September 2010

Intelligent Scientists "Expelled" by Illuminati

http://www.henrymakow.com/expelled.html

Intelligent Scientists "Expelled" by Illuminati

by Henry Makow, Ph.D.

If you needed confirmation that humanity is satanically possessed, rent Ben Stein's 2008 documentary, "Expelled - No Intelligence Allowed."

It documents how scientists who see an intelligent force at work in nature are being rooted out and fired from their jobs.

They are being slandered as "Creationists" and religious fundamentalists. Any mention of "Intelligent Design" is forbidden.

Isn't this appalling? Science is supposed to explain the complex intelligence manifest in the natural world, not deny that it exists.

The offending scientists are not "religious." They know that a single cell is more complex than an atom bomb. It's clear that an amazing intelligence is at work. Call it God or Intelligent Design. Call it "John Doe" - but you can't deny it!

Some people think I'm a Christian or a religious Jew. I am neither. Like these scientists, I can see the obvious. Creation is a miracle which didn't happen by accident. It's governed by laws which scientists and metaphysicians are supposed to discern.

But mention "intelligent design" today and your career is over. Why are "secularists" so afraid of intelligent design?

Because they're funded by the Illuminati, (Rockefellers, Rothschilds etc.) who are Satanists. Satanists fear that acceptance of this "intelligence" will interfere with the makeover they're giving humanity. They think they are God.

Secularism pretends to be about freedom and tolerance but that's a ruse. It is Satanism in disguise and nothing freaks a Satanist more than
the rumor of God or anything resembling Him.

Watch the trailer!     The secularists are more fanatical than any religious cult. They are a satanic cult. They deny the obvious! They have to expel scientists! They have to stop free inquiry and debate!


DARWINIAN MODEL

"Is man an angel or an ape?"

The Illuminati use Darwinism to reduce man from a potential angel (the religious view) to an ape. They created Darwin to replace the Divine Presence with a cruel and random universe governed by survival of the fittest. Darwinism empowered the Illuminati. They imposed it on us.

Intelligent Design empowers humanity. We're not talking about the "God of the Old Testament," the straw-man that pathetic atheists easily debunk. We're talking about something most of us both intuit and desire, a method and purpose to creation, a way of living conducive to health and happiness, a Moral Order.

This is anathema to our Illuminutty guardians who are busily taking God's place, enthroning their little mascot Lucifer.

If you doubt me, watch this documentary. It shows very clearly that this leads to Eugenics and the view people are "useless" eaters who can be bred, trained or killed with impunity. It is the end of free will and morality.

You will also see we have been overtaken by Communism. "Truth" is no longer objective, but is instead defined by political diktat.


CONCLUSION

God must feel like a loving parent whose favorite child has chosen to deny Him.

The Creator has given us everything we need to flourish so long as we follow the instruction manual.

But devil worshipers who wish to turn Creation on its head have made us their mental prisoner. They are responsible for the slaughter of millions. They still control the world.

Ultimately, there are only two parties. God's party and Satan's. The Party of God believes in inherent salutary natural and spiritual laws. The Party of Satan believes in denying and defying these laws; and perverting and destroying human life. 

Yes Virginia, there is no Satan. But there are legions of his disciples ready to betray truth for transitory profit. They're in academia, the mass media, government and the National Academy of "Sciences."

They serve the Prince of Lies. They make evil seem good, lies seem true. They want humanity to be an accomplice in its own demise. This is why Satanists "reveal the method." They want our moral complicity.
They want our souls.

Modern Western history is the record of the overthrow of Christianity by Satanism disguised as secularism. Satanism has pervaded every aspect of our cultural and intellectual life but we hoped that science would be spared. Apparently, this is not to be.  

-----------------------------------------

Comments for "Intelligent Scientists "Expelled" by Illuminati"

Dan said (September 15, 2010):

The notion of man evolving into superman is a cornerstone of Luciferian doctrine long before Darwin dressed it up in scientific drag.

“This - the evolution of man into superman - was always the purpose of the ancient Mysteries, and the real purpose of modern Masonry is not the social and charitable purposes to which so much attention is paid, but the expediting of the spiritual evolution of those who aspire to perfect their own nature and transform it into a more god-like quality. And this is a definite science, a royal art, which it is possible for each of us to put into practice; whilst to join the Craft for any other purpose than to study and pursue this science is to misunderstand its meaning.” (The Meaning of Masonry
by W.L. Wilmshurst, pg. 47) http://www.sacred-texts.com/mas/mom/index.htm

In the 18th century Darwin's grandfather Erasmus presented an hypothesis of all life originating from a single 'filament'. Erasmus Darwin was a fantastically wealthy high Mason.
Darwin was backed by the British Royal Society - whose founders were Freemasons, no exceptions. The problem with Darwin's theory wasn't that it proposed that beneficial variations in genetic traits become permanent over time. That had been known to animal breeders and farmers all along. Darwin's theory attempted to force science to assert a conclusion that a human being is nothing but a random stage in process of evolution out of primeval slime.

This way of looking at the human condition is the prerequisite for the caste system. Darwin and his Royal Society peers took if for granted that they were a superior breed.

Hitler wasn't born an aristocrat, but the Nazi religion - occult Theosophy - also rides on the notion of evolution. That's why before WWII started the British King and aristocrats were allies in the cause of Eugenics.

During the 1930's British playwright George Bernard Shaw, Fabian Socialist, author of of "Man and Superman" and "My Fair Lady" praised Nazi eugenics efforts, and advocated "discovery of a humane gas" to make people that 'aren't pulling their weight' by State standards .... disappear.
http://www.youtube.com/watch?v=hQvsf2MUKRQ

I advise anyone that rents "Expelled" to be sure not to miss the last ten minutes to see Richard Dawkins trip all over himself in a one on one debate with Stein.

Thursday, 2 September 2010

Sacred Economics

http://www.realitysandwich.com/sacred_economics

Sacred Economics

Charles Eisenstein


This week, with some of the RS team off the grid at the annual Burning Man festival in Black Rock City, Nevada, we'll be presenting highlights from the archives. The following article first ran on Reality Sandwich on February 22, 2010, and is a adapted from the introduction to the upcoming book Sacred Economics. The purpose of the book is to make money and human economy as sacred as everything else in the universe. 

Today we associate money with the profane, and for good reason. If anything is sacred in this world, it is surely not money. Money seems to be the enemy of all our better instincts, as is clear every time the thought "I can't afford to" blocks an impulse toward kindness or generosity. Money seems to be the enemy of beauty, as the disparaging term "a sellout" demonstrates. Money seems to be the enemy of every worthy social and political reform, as corporate power steers legislation toward the aggrandizement of its own profits. Money seems to be destroying the earth, as we pillage the oceans, the forests, the soil, and every species to feed a greed that knows no end.

From at least the time that Jesus threw the moneychangers from the temple, we have sensed that there is something unholy about money. When a politician seeks money instead of the public good, we call him corrupt. Adjectives like "dirty" and "filthy" naturally describe money.  Monks are supposed to have little to do with it: "You cannot serve God and Mammon."

At the same time, no one can deny that money has a mysterious, magical quality as well, the power to alter human behavior and coordinate human activity. From ancient times thinkers have marveled at the ability of a mere mark to confer this power upon a disk of metal or slip of paper. Unfortunately, looking at the world around us, it is hard to avoid concluding that the magic of money is an evil magic.

Obviously, if we are to make money into something sacred, nothing less than a wholesale revolution in money will suffice, a transformation of its essential nature. It is not merely our attitudes about money that must change, as some self-help gurus and "prosperity programming" teachers would have us believe; rather, we will create a new kind of money that embodies and reinforces our changed attitudes. Sacred Economics describes this new money and the new economy that will coalesce around it. It also explores the metamorphosis in human identity that is both a cause and a result of the transformation of money. The changed attitudes of which I speak go all the way to the core of what it is to be human: they include our understanding of the purpose of life, humanity's role on the planet, the relationship of the individual to the human and natural community; even what it is to be an individual, a self. This should not be surprising, since we experience money (and property) as an extension of our selves; hence the possessive pronoun "mine" to describe it, the same pronoun we use to identify our arms and heads. My money, my car, my hand, my liver. Consider as well the sense of violation we feel when we are robbed or "ripped off," as if part of our very selves had been taken.

A transformation from profanity to sacredness in money, something so deep a part of our identity, something so central to the workings of the world, would have profound effects indeed. But what does it mean for money, or anything else for that matter, to be sacred? It is in a crucial sense the opposite of what sacred has come to mean. For several thousand years, increasingly, the concepts of sacred, holy, and divine have referred to something separate from nature, the world, and the flesh. Three or four thousand years ago the gods began a migration from the lakes, forests, rivers, and mountains into the sky, becoming the imperial overlords of nature rather than its essence. As divinity separated from nature, so also it became unholy to involve oneself too deeply in the affairs of the world. The human being changed from a living soul to a mere receptacle of spirit, a profane envelope for a sacred soul, culminating in the Cartesian mote of consciousness observing the world but not participating in it, and the Newtonian watchmaker God doing the same. To be divine was to be supernatural, non-material. If God participated in the world at all, it was through miracles -- divine intercessions violating or superseding nature's laws.

Yet, paradoxically, this separate, abstract thing called spirit is supposed to be what animates the world. Ask the religious person what has changed when a person dies, and she will say the soul has left the body. Ask her who makes the rain fall and the wind blow, and she will say it is God. To be sure, Galileo and Newton appeared to have removed God from these everyday workings of the world, explaining it instead as the clockwork of a vast machine of impersonal force and mass, but even they still needed the Clockmaker to wind it up in the beginning, to imbue the universe with the potential energy that has run it ever since. This conception is still with us today as the Big Bang, a primordial event that is the source of the "negative entropy" that allows movement and life. In any case, our culture's notion of spirit is that of something separate and non-worldly, that yet can miraculously intervene in material affairs, and that even animates and directs them in some mysterious way.

It is hugely ironic and hugely significant that the one thing on the planet most closely resembling the forgoing conception of the divine is money! It is an invisible, immortal force that surrounds and steers all things, omnipotent and limitless, an "invisible hand" that, it is said, makes the world go 'round. Yet, money today is an abstraction, at most symbols on a piece of paper, but usually mere bits in a computer. It exists in a realm far removed from materiality. In that realm, it is exempt from nature's most important laws, for it does not decay and return to the soil as all other things do, but is rather preserved, changeless, in its vaults and computer files, even growing with time thanks to interest. It bears the properties of eternal preservation and everlasting increase, both of which are profoundly unnatural. The natural substance that comes closest to these properties is gold, which does not rust, tarnish, or decay. Early on, gold was therefore used both as money and as a metaphor for the divine soul, that which is incorruptible and changeless.

Money's divine property of abstraction, of disconnection from the real world of things, reached its extreme in the early years of the 21st century as the financial economy lost its mooring in the real economy and took on a life of its own. The vast fortunes of Wall Street were unconnected to any material production, seeming to exist in a separate realm.

Looking down from Olympian heights, the financiers called themselves "masters of the universe," channeling the power of the god they served to bring fortune or ruin upon the masses, to literally move mountains, raze forests, change the course of rivers, cause the rise and fall of nations. But money soon proved to be a capricious god. As I write these words, it seems that the increasingly frantic rituals that the financial priesthood uses to placate the god money are in vain. Like the clergy of a dying religion, they exhort their followers to greater sacrifices while blaming their misfortunes either on sin (greedy bankers, irresponsible consumers) or on the mysterious whims of God (the financial markets). Soon, perhaps, we will blame the priests themselves.

What we call deflation, an earlier culture might have called, "God abandoning the world." Money is disappearing, and with it a third property of spirit, the animating force of the human realm. At this writing, all over the world machines stand idle. Factories have ground to a halt, construction equipment sits derelict in the yard. Yet all the human and material inputs to operate them still exist. There is still fuel, there are still raw materials, and there are still human beings in abundance who know how to operate the machines. It is rather something immaterial, that animating spirit, which has fled. What has fled is money. That is the only thing missing, so insubstantial (in the form of electrons in computers) that it can hardly be said to exist at all, yet so powerful that without it, human productivity grinds to a halt. It is as if God had forsaken the world. Even beyond the mechanical realm, we can see the demotivating effects of lack of money. Consider the stereotype of the unemployed man, nearly broke, slouched in front of the TV in his undershirt, drinking a beer, hardly able to rise from his chair. Money, it seems, animates people as well as machines. Without it we are dispirited.

We do not realize that our concept of the divine has attracted to it a god that fits that concept, and given it sovereignty over the earth. By divorcing the soul from the flesh, spirit from matter, and God from nature, we have installed a ruling power that is soulless, alienating, ungodly and unnatural. So when I speak of making money sacred, I am not invoking a supernatural agency to infuse sacredness into the inert, mundane objects of nature. I am rather reaching back to an earlier time, a time before the divorce of matter and spirit, when sacredness was endemic to all things.

My understanding of sacredness is secondary to my feeling of sacredness, or to put it better, to the feeling of being in the presence of the sacred. I cannot define that feeling, nor need I define it, because I am sure that you have felt it as well. In the presence of the sacred, we are moved to the very core of our being, we feel reverence and awe, humility and amazement, and a profound sense of gratitude. Even though, intellectually, I know that I am in the presence of the sacred all the time, only rarely do I actually feel its fullness. When I do, I feel like I have returned to a home that was always there and to a truth that has always existed. It can happen when I observe an insect or a plant, hear a symphony of birdsongs or frog calls, feel mud between my toes, gaze upon an object beautifully made, apprehend the impossibly coordinated complexity of a cell or an ecosystem, witness a synchronicity or symbol in my life, watch happy children at play, am touched by a work of genius. Extraordinary though these experiences are, they are in no sense separate from the rest of life. Indeed, their power comes from the glimpse they give of a realer world, a sacred world that underlies and interpenetrates our own.

What is this "home that was always there, this truth that has always existed"? It is the truth of the unity or the connectedness of all things, and the feeling is that of participating in something far greater than oneself, yet which also is oneself. In ecology, this is the principle of interdependence: that all beings depend for their survival on the web of other beings that surrounds them, ultimately extending out to encompass the entire planet. The extinction of any species diminishes our own wholeness, our own health, our own selves: something of our very being is lost. We can feel this sense of loss directly, as an emotion, as well as indirectly through the multiplying health crises of our time. This book will draw from ecology to help describe a sacred economy. For example, in the planetary ecosystem there is no such thing as waste: the waste of one creature is the food of another, creating a sacred gift circle. For an economy to be sacred, it must be the same.

If the sacred is the gateway to the underlying unity of all things, it is equally a gateway to the uniqueness and specialness of each thing. A sacred object is one-of-a-kind; it carries a unique essence that cannot be reduced to a set of generic qualities. That is why reductionistic science seems to rob the world of its sacredness, since everything becomes one or another combination of a handful of generic building blocks. This conception mirrors our economic system, itself consisting mainly of standardized, generic commodities, job descriptions, processes, data, inputs and outputs and, most generic of all, money, the ultimate abstraction. In earlier times it was not so. Tribal peoples saw each being not primarily as a member of a category, but as a unique enspirited individual. Even rocks, clouds, and apparently identical drops of water were thought to be sentient, unique beings. The products of the human hand were unique as well, bearing through their distinguishing irregularities the signature of the maker. Here was the link between the two qualities of the sacred, connectedness and uniqueness: in their uniqueness, objects retain the mark of their origin, their place in the great matrix of being, their dependency on the rest of creation for their existence.

In this book I will describe a vision of a money system and an economy that is sacred. In other words, I will describe an economy that is no longer separate, in fact or in perception, from the natural matrix that underlies it. I will describe a reunion of the long-sundered realms of human and nature. The human economy will no longer be something separate from nature; it will be an extension of nature that obeys all of its laws and bears all of its beauty, wholeness, and enchantment.

Within every institution of our civilization, no matter how ugly or corrupt, there is the germ of something beautiful: the same note at a higher octave. Money is no exception: its original purpose is simply to connect human gifts with human needs, so that we might all live in greater abundance. How instead money has come to generate scarcity rather than abundance, competition rather than sharing, is one of the threads of this book. Yet despite what it has become, in that original beauty of money we can catch a glimpse of what will one day make it sacred again. We intuitively recognize the exchange of gifts as a sacred occasion, which is why we instinctively make a ceremony out of gift-giving. Sacred money, then, will be a medium of gifting, a means to recreate the gift economy of a hunter-gatherer or village society on a planetary level. A sacred economy will be an economy of the Gift.

Sacred Economics describes this future and also maps out a practical way to get there. Long ago I grew tired of reading books that criticized some aspect of our society without offering a positive alternative. Then, I grew tired of books that offered a positive alternative that seemed impossible to reach: "We must reduce carbon emissions by 90%." Then I grew tired of books that offered a plausible means of reaching it, that did not describe what I, personally, could do to create it. Sacred Economics operates on all four levels: it offers a fundamental analysis of what has gone wrong with money; it describes a more beautiful world based on a different kind of money and economy; it explains the collective actions necessary to create that world and the means by which these actions can come about; and it explores the personal dimensions of the world-transformation, the change in identity and being that I call  "living in the Gift."

The economic crisis we face today is just one of many crises that are converging upon us all at once: crises in energy, education, health, water, soil, climate, politics, and the environment. My previous book, The Ascent of Humanity, traced the origin of each to a common root, millennia old, that I call Separation. Their convergence is a birth crisis, in which we are expelled from the old world into the new. Unavoidably, these crises invade our personal lives, our world falls apart, and we too are born into a new world, a new identity. This is why so many people sense a spiritual dimension to the planetary crisis.

I dedicate all of my work to the more beautiful world our hearts tell us is possible. I say our "hearts", because our minds tell us it is not possible. Our minds doubt that things will ever be much different than experience has taught us. You may, as you read the forgoing encomium to a sacred economy, have felt a wave of cynicism, contempt, or despair. You might have felt an urge to dismiss my words as hopelessly idealistic. Indeed, I myself was tempted to tone down my description, to make it more plausible, more responsible, more in line with our low expectations for what life and the world can be. But such an attenuation would not have been the truth. I will, using the tools of the mind, speak what is in my heart. In my heart I know that an economy and society this beautiful is possible for us to create, and indeed, that anything less than that is unworthy of us. Are we so broken, that we would aspire to anything less than a sacred world?

Wednesday, 1 September 2010

Global Collapse of the Fiat Money System

http://www.globalresearch.ca/index.php?context=va&aid=20853


Global Collapse of the Fiat Money System: Too Big To Fail Global Banks Will Collapse Between Now and First Quarter 2011

When Quantitative Easing Has Run Its Course and Fails

By Matthias Chang

Global Research, August 31, 2010
Future Fast Forward

Readers of my articles will recall that I have warned as far back as December 2006, that the global banks will collapse when the Financial Tsunami hits the global economy in 2007. And as they say, the rest is history.

Quantitative Easing (QE I) spearheaded by the Chairman of Federal Reserve, Ben Bernanke delayed the inevitable demise of the fiat shadow money banking system slightly over 18 months.

That is why in November of 2009, I was so confident to warn my readers that by the end of the first quarter of 2010 at the earliest or by the second quarter of 2010 at the latest, the global economy will go into a tailspin. The recent alarm that the US economy has slowed down and in the words of Bernanke “the recent pace of growth is less vigorous than we expected” has all but vindicated my analysis. He warned that the outlook is uncertain and the economy “remains vulnerable to unexpected developments”.

Obviously, Bernanke’s words do not reveal the full extent of the fear that has gripped central bankers and the financial elites that assembled at the annual gathering at Jackson Hole, Wyoming. But, you can take it from me that they are very afraid.

Why?

Let me be plain and blunt. The “unexpected developments” Bernanke referred to is the collapse of the global banks. This is FED speak and to those in the loop, this is the dire warning.

So many renowned economists have misdiagnosed the objective and consequences of quantitative easing. Central bankers’ scribes and the global mass media hoodwinked the people by saying that QE will enable the banks to lend monies to cash-starved companies and jump start the economy. The low interest rate regime would encourage all and sundry to borrow, consume and invest.

This was the fairy tale.

Then, there were some economists who were worried that as a result of the FED’s printing press (electronic or otherwise) working overtime, hyper-inflation would set in soon after.

But nothing happened. The multiplier effect of fractional reserve banking did not take off. Bank lending in fact stalled.

Why?

What happened?

Let me explain in simple terms step by step.

1) All the global banks were up to their eye-balls in toxic assets. All the AAA mortgage-backed securities etc. were in fact JUNK. But in the balance sheets of the banks and their special purpose vehicles (SPVs), they were stated to be worth US$ TRILLIONS.

2) The collapse of Lehman Bros and AIG exposed this ugly truth. All the global banks had liabilities in the US$ Trillions. They were all INSOLVENT. The central banks the world over conspired and agreed not to reveal the total liabilities of the global banks as that would cause a run on these banks, as happened in the case of Northern Rock in the U.K.

3) A devious scheme was devised by the FED, led by Bernanke to assist the global banks to unload systematically and in tranches the toxic assets so as to allow the banks to comply with RESERVE REQUIREMENTS under the fractional reserve banking system, and to continue their banking business. This is the essence of the bailout of the global banks by central bankers.

4) This devious scheme was effected by the FED’s quantitative easing (QE) – the purchase of toxic assets from the banks. The FED created “money out of thin air” and used that “money” to buy the toxic assets at face or book value from the banks, notwithstanding they were all junks and at the most, worth maybe ten cents to the dollar. Now, the FED is “loaded” with toxic assets once owned by the global banks. But these banks cannot declare and or admit to this state of affairs. Hence, this financial charade.

5) If we are to follow simple logic, the exercise would result in the global banks flushed with cash to enable them to lend to desperate consumers and cash-starved businesses. But the money did not go out as loans. Where did the money go?

6) It went back to the FED as reserves, and since the FED bought US$ trillions worth of toxic wastes, the “money” (it was merely book entries in the Fed’s books) that these global banks had were treated as “Excess Reserves”. This is a misnomer because it gave the ILLUSION that the banks are cash-rich and under the fractional reserve system would be able to lend out trillions worth of loans. But they did not. Why?

7) Because the global banks still have US$ trillions worth of toxic wastes in their balance sheets. They are still insolvent under the fractional reserve banking laws. The public must not be aware of this as otherwise, it would trigger a massive run on all the global banks!

8) Bernanke, the US Treasury and the global central bankers were all praying and hoping that given time (their estimation was 12 to 18 months) the housing market would recover and asset prices would resume to the levels before the crisis. .

Let me explain: A House was sold for say US$500,000. Borrower has a mortgage of US$450,000 or more. The house is now worth US$200,000 or less. Multiply this by the millions of houses sold between 2000 and 2008 and you will appreciate the extent of the financial black-hole. There is no way that any of the global banks can get out of this gigantic mess. And there is also no way that the FED and the global central bankers through QE can continue to buy such toxic wastes without showing their hands and exposing the lie that these banks are solvent.

It is my estimation that they have to QE up to US$20 trillion at the minimum. The FED and no central banker would dare “create such an amount of money out of thin air” without arousing the suspicions and or panic of sovereign creditors, investors and depositors. It is as good as declaring officially that all the banks are BANKRUPT.

9) But there is no other solution in the short and middle term except another bout of quantitative easing, QE II. Given the above caveat, QE II cannot exceed the amount of the previous QE without opening the proverbial Pandora Box.

10) But it is also a given that the FED will embark on QE II, as under the fractional reserve banking system, if the FED does not purchase additional toxic wastes, the global banks (faced with mounting foreclosures, etc.) will fall short of their reserve requirements.

11) You will also recall that the FED at the height of the crisis announced that interest will be paid on the so-called “excess reserves” of the global banks, thus enabling these banks to “earn” interest. So what we have is a merry-go-round of monies moving from the right pocket to the left pocket at the click of the computer mouse. The FED creates money, uses it to buy toxic assets, and the same money is then returned to the FED by the global banks to earn interest. By this fiction of QE, banks are flushed with cash which enable them to earn interest. Is it any wonder that these banks have declared record profits?

12) The global banks get rid of some of their toxic wastes at full value and at no costs, and get paid for unloading the toxic wastes via interest payments. Additionally, some of the “monies” are used by these banks to purchase US Treasuries (which also pay interests) which in turn allows the US Treasury to continue its deficit spending. THIS IS THE BAILOUT RIP OFF of the century.

Now that you fully understand this SCAM, it is left to be seen how the FED will get away with the next round of quantitative easing – QE II.

Obviously, the FED and the other central banks are hoping that in time, asset prices will recover and resume their previous values before the crisis. This is a fantasy. QE II will fail just as QE I failed to save the banks.

The patient is in intensive care and is for all intent and purposes brain dead, although the heart is still pumping albeit faintly. The Too Big To Fail Banks cannot be rescued and must be allowed to be liquidated. It will be painful, but it is necessary before there is recovery. This is a given.

Warning:

When the ball hits the ceiling fan, sometime early 2011 at the earliest, there will be massive bank runs.

I expect that the FED and other central banks will pre-empt such a run and will do the following:

1) Disallow cash withdrawals from banks beyond a certain amount, say US$1,000 per day; 2) Disallow cash transactions up to a certain amount, say US$10,000 for certain transactions; 3) Transactions (investments) for metals (gold and silver) will be restricted; 4) Worst-case scenario – the confiscation of gold AS HAPPENED IN WORLD WAR II. 5) Imposition of capital controls etc.; 6) Legislations that will compel most daily commercial transactions to be conducted through Debit and or Credit Cards; 7) Legislations to make it a criminal offence for any contraventions of the above.

Solution:

Maintain a bank balance sufficient to enable you to comply with the above potential impositions.

Start diversifying your assets away from dollar assets. Have foreign currencies in sufficient quantities in those jurisdictions where the above anticipated impositions are least likely to be implemented.

CONCLUSION

There will be a financial tsunami (round two) the likes of which the world has never seen.

Global banks will collapse!

Be ready.