Economica Files

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Doggy Style Position: Trillionixxx Deep Impact

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New Europe With Old Problems: Banks Need $24 Trillions

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Sex And Money - Personality Disorder Test



How much sex do you need in one week?

a) less than 7
b) more than 7

How much money do you earn in one week?

a) less than it needs to pay a prostitute once a day in one week
b) more than it needs to pay a prostitute once a day in one week

Who creates the money?

a) central bank
b) state

Who is the owner of the money in your pocket?

a) central bank
b) state
c) you

Central bank is

a) private institution
b) public institution

How much masturbation is too much?

a) 7 times a week
b) more than 7 times a week

State can only issue debt.
State can’t create money. Why?

a) because fair is fair
b) because it's good for business
c) because we are so screwed

Do you like anal sex?

a) yes
b) no

What do you prefer?

a) penetrate
b) receive

Why is money backed by nothing?

a) because it's good for business
b) because it's a good business

Would you have sex with a stranger for 1 million dollars?

a) yes
b) no

Why people accept the unacceptable lies?

a) too much sex, no time to think
b) they were deceived
c) they are forced to

What does freedom mean?

a) there is no freedom without monetary sovereignty
b) having sex every time you wish

When was the last time David Beckham had sex?

a) this morning
b) wait a moment, i have to check
c) i would give anything to be david beckham
d) it's not my problem
e) i don't care

World economy is a war economy

a) it's important to have a job
b) it's important to earn salary
c) gdp is a perfect excuse for everything

You are killing others by using official debt money

a) real people have a really good sex
b) if both partners accept it, good sex is without borders
c) it's remarkable how stupid a man can be when his job depends on not understanding something

Sex with consequences.
Are you prepared? Santa Claus

a) is having sex right now
b) is preparing a new surprise
c) is a coca-cola invention
d) is actually working on your factory adress
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Crom Alternative Currency System
Crom Alternative News

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The Truth about America’s Debt

FrontPageMagazine.com | Friday, February 13, 2009

At the cost of more than $800 billion, the just -passed stimulus bill stands as the largest single outlay item in history. So great is the amount involved that it exceeds the GDP of even such economies as Australia, Saudi Arabia and Argentina.

Needless to say, the federal government does not have the cash to finance its latest undertaking. Much of it will have to be borrowed, and that amount will be added to the budget deficit, which, many now believe, will top one trillion dollars.

The deficit will be then appended to the national debt, which currently stands at $10.7 trillion. Nearly than 70 percent of our GDP, this astounding amount grows by $2.3 billion every day. To put it in comprehensible terms, every single American family would have to pay $160,000 in taxes in order to erase that amount.

But this is not the full story. The $10.6 trillion is only a fraction of the real national debt, which, in reality, is roughly six times higher. The difference between the official figure and the government’s true obligations is made up of entitlements, primarily Medicaid and Social Security. By pledging to cover the costs associated with these programs, the U.S. government is now beholden to the tune of $50 trillion.

This pushes its overall obligations to the stratospheric neighborhood of $60 trillion. To put it into prospective, this figure is roughly four times our national GDP and larger than the GDP of the entire world in the year 2007. A debt the like of which the world has never seen, to pay it off every American household would have to fork over on average $516,000. Yes, you are reading correctly: Every American family is now on the hook for over half a million dollars, and counting.

There are, however, some experts who estimate that the actual figure is larger still. One of them is Richard W. Fisher, the head of the Federal Reserve Bank of Dallas, who said in a speech before the Commonwealth Club of California:

Add together the unfunded liabilities from Medicare and Social Security, and it comes to $99.2 trillion over the infinite horizon. Traditional Medicare composes about 69 percent, the new drug benefit roughly 17 percent and Social Security the remaining 14 percent.

Since our spending-addicted representatives do not want us to know the full extent of America’s indebtedness, they have come with an ingenious way of taking entitlements off the nation’s balance sheet. Entitlements, they claim, are not genuine accounting liabilities, because they can be cut or reduced if the need should arise.

This is a rather clever argument to be sure, but there is one problem with it. Almost everyone knows that for all practical purposes entitlements can never be cut. For this to happen a willing president and a willing Congress would be required, a combination that is very unlikely to occur. Considered a minefield of American politics, most politicians steer well clear of the subject of entitlement reform. Those few brave ones who have attempted to place the crash-bound train on a sounder track have been invariably savaged. You may still remember what happened to George W. Bush who after his re-election sought to use his “political capital” to reform Social Security.

Unwilling to address the problem, those entrusted with our national finances are using accounting gimmicks to keep Americans in the dark about the state of the country’s financial condition. By underreporting the extent of the government’s fiscal obligations, they are seeking to prolong for as long as possible their unsustainable spending spree. There are many who fear that we may be past the point of no return in terms of our ability to make good on our commitments. In other words, we may be heading for national bankruptcy.

A few years ago, Senator Edward Kennedy was reported as saying to younger members of his family, “I'm glad I'm not going to be around when you guys are my age.” When they asked him why, he replied, “Because when you guys are my age, the whole thing is going to fall apart.” There can be little doubt that Senator Kennedy had the country’s dire fiscal condition in mind when uttering those haunting words. Although a proponent of big spending all his life, Kennedy seems to realize that sooner or later the hour of reckoning must come.

Regulations require that corporations as well as state and local governments record expenses immediately after a transaction takes place, even if the payment will be made in the future. The federal government, however, refuses to play by this rule. Instead it looks for ways to keep its astronomic obligations off the nation’s balance sheet.

Rather than wisely administering America’s finances, our representatives are about to add hundreds of billions of dollars to the already crushing national debt. Reckless and irresponsible, they are taking this nation down the road to a fiscal Gomorrah.
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Crom Alternative Currency System
Crom Alternative News

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China - Who Is Going To Buy $4.2Trillion Of New US Debt?

13 Feb 2009, Daily Telgraph

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If Money Is Created From Nothing, Why Are We Paying Taxes?

By Mike Adams, February 11, 2009

If the U.S. government can create trillions of dollars out of thin air and use it to bail out corporations, banks and entire industries, then why are we still paying taxes at all?
Couldn't the government just create all the money we're paying in taxes anyway, and just let us keep all those tax dollars?
After all, if money can be created with no consequence, then there's absolutely no reason to collect taxes at all!

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US government short $1.2 trillion to pay its own retirees' healthcare

Monday February 16, 2009, The Raw Story

There may yet be more bailouts in sight. Next time it might not be the banks -- it might be your retirement, and there might not be enough money left.

While it's relatively well-known that Social Security is short as much as $50 trillion needed to pay the benefits of future retirees, the shortfall needed to pay civil servants' retiree benefits -- split between the federal government and US states -- is a whopping $1.7 trillion, according to an estimate released Monday.

State and local governments have set aside "virtually no money" to fund medical benefits for retired state and federal employees, USA Today revealed.

The estimate has gotten almost no attention, but the unfunded toll continues to climb. While the US government can spend money it doesn't have in an effort to jumpstart the economy, many cities and states have laws requiring them to balance their budgets, meaning the only way they could meet retirement benefit mandates is to raise taxes or cut benefits and services, or both.

Such unfunded medical benefits includes those of city, state and town employees; teachers; principals; superintendents; librarians; administrative assistants; custodians; school district staff; judges; public attorneys; retired military personnel; federal employees; park rangers; and water district personnel.

On the federal side, the cost totals around $1.2 trillion -- which includes retirement benefits for the Pentagon and for the federal government, the report says. On the states' side, the cost is harder to estimate but is at least $500 billion, according to the report.

Despite a $787 billion stimulus package, little money has been allocated to long-term benefits.

In the 1980s, the federal government and other employers of civil servants exchanged pay raises for future medical benefits, the report notes. But that tradeoff may end up costing the states and government more.

The paper says states are:

* "Cutting health benefits. Most governments have the legal authority to reduce or end retiree health coverage — unlike pensions, which cannot be cut under most states' laws. When Rhode Island trimmed retiree medical benefits in October, 1,291 workers — 9 percent of the state's workforce — retired to keep the more generous old health plan."

* "Saving money. Alaska, Minnesota, Pennsylvania and Utah are among states that set aside some money last year to prepare for future medical costs."

Hawaii, meanwhile, plans to slash medical benefits for state and county employees. One plan eyes cutting benefits until a retiree reaches Medicare age, 10 years from when the plan originally kicked in -- at 55.

"That throws everyone's financial planning off, and at this late stage for someone who is 50, 55 years old, what do you do?" one critic said. "What options are you left with, because medical care is not free."
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Crom Alternative Currency System
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Geithner’s ‘Dirty Little Secret’: The Entire Global Financial System is at Risk

Global Research, March 30, 2009

When the Solution to the Financial Crisis becomes the Cause

US Treasury Secretary Tim Geithner has unveiled his long-awaited plan to put the US banking system back in order. In doing so, he has refused to tell the ‘dirty little secret’ of the present financial crisis. By refusing to do so, he is trying to save de facto bankrupt US banks that threaten to bring the entire global system down in a new more devastating phase of wealth destruction.



The Geithner Plan, his so-called Public-Private Partnership Investment Program or PPPIP, as we have noted previously is designed not to restore a healthy lending system which would funnel credit to business and consumers. Rather it is yet another intricate scheme to pour even more hundreds of billions directly to the leading banks and Wall Street firms responsible for the current mess in world credit markets without demanding they change their business model. Yet, one might say, won’t this eventually help the problem by getting the banks back to health?



Not the way the Obama Administration is proceeding. In defending his plan on US TV recently, Geithner, a protégé of Henry Kissinger who previously was CEO of the New York Federal Reserve Bank, argued that his intent was ‘not to sustain weak banks at the expense of strong.’ Yet this is precisely what the PPPIP does. The weak banks are the five largest banks in the system.



The ‘dirty little secret’ which Geithner is going to great degrees to obscure from the public is very simple. There are only at most perhaps five US banks which are the source of the toxic poison that is causing such dislocation in the world financial system. What Geithner is desperately trying to protect is that reality. The heart of the present problem and the reason ordinary loan losses as in prior bank crises are not the problem, is a variety of exotic financial derivatives, most especially so-called Credit Default Swaps.



In 2000 the Clinton Administration then-Treasury Secretary was a man named Larry Summers. Summers had just been promoted from No. 2 under Wall Street Goldman Sachs banker Robert Rubin to be No. 1 when Rubin left Washington to take up the post of Vice Chairman of Citigroup. As I describe in detail in my new book, Power of Money: The Rise and Fall of the American Century, to be released this summer, Summers convinced President Bill Clinton to sign several Republican bills into law which opened the floodgates for banks to abuse their powers. The fact that the Wall Street big banks spent some $5 billion in lobbying for these changes after 1998 was likely not lost on Clinton.



One significant law was the repeal of the 1933 Depression-era Glass-Steagall Act that prohibited mergers of commercial banks, insurance companies and brokerage firms like Merrill Lynch or Goldman Sachs. A second law backed by Treasury Secretary Summers in 2000 was an obscure but deadly important Commodity Futures Modernization Act of 2000. That law prevented the responsible US Government regulatory agency, Commodity Futures Trading Corporation (CFTC), from having any oversight over the trading of financial derivatives. The new CFMA law stipulated that so-called Over-the-Counter (OTC) derivatives like Credit Default Swaps, such as those involved in the AIG insurance disaster, (which investor Warren Buffett once called ‘weapons of mass financial destruction’), be free from Government regulation.



At the time Summers was busy opening the floodgates of financial abuse for the Wall Street Money Trust, his assistant was none other than Tim Geithner, the man who today is US Treasury Secretary. Today, Geithner’s old boss, Larry Summers, is President Obama’s chief economic adviser, as head of the White House Economic Council. To have Geithner and Summers responsible for cleaning up the financial mess is tantamount to putting the proverbial fox in to guard the henhouse.



The ‘Dirty Little Secret’



What Geithner does not want the public to understand, his ‘dirty little secret’ is that the repeal of Glass-Steagall and the passage of the Commodity Futures Modernization Act in 2000 allowed the creation of a tiny handful of banks that would virtually monopolize key parts of the global ‘off-balance sheet’ or Over-The-Counter derivatives issuance.



Today five US banks according to data in the just-released Federal Office of Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activity, hold 96% of all US bank derivatives positions in terms of nominal values, and an eye-popping 81% of the total net credit risk exposure in event of default.



The five are, in declining order of importance: JPMorgan Chase which holds a staggering $88 trillion in derivatives (€66 trillion!). Morgan Chase is followed by Bank of America with $38 trillion in derivatives, and Citibank with $32 trillion. Number four in the derivatives sweepstakes is Goldman Sachs with a ‘mere’ $30 trillion in derivatives. Number five, the merged Wells Fargo-Wachovia Bank, drops dramatically in size to $5 trillion. Number six, Britain’s HSBC Bank USA has $3.7 trillion.



After that the size of US bank exposure to these explosive off-balance-sheet unregulated derivative obligations falls off dramatically. Just to underscore the magnitude, trillion is written 1,000,000,000,000. Continuing to pour taxpayer money into these five banks without changing their operating system, is tantamount to treating an alcoholic with unlimited free booze.



The Government bailouts of AIG to over $180 billion to date has primarily gone to pay off AIG’s Credit Default Swap obligations to counterparty gamblers Goldman Sachs, Citibank, JP Morgan Chase, Bank of America, the banks who believe they are ‘too big to fail.’ In effect, these five institutions today believe they are so large that they can dictate the policy of the Federal Government. Some have called it a bankers’ coup d’etat. It definitely is not healthy.



This is Geithner’s and Wall Street’s Dirty Little Secret that they desperately try to hide because it would focus voter attention on real solutions. The Federal Government has long had laws in place to deal with insolvent banks. The FDIC places the bank into receivership, its assets and liabilities are sorted out by independent audit. The irresponsible management is purged, stockholders lose and the purged bank is eventually split into smaller units and when healthy, sold to the public. The power of the five mega banks to blackmail the entire nation would thereby be cut down to size. Ooohh. Uh Huh?



This is what Wall Street and Geithner are frantically trying to prevent. The problem is concentrated in these five large banks. The financial cancer must be isolated and contained by Federal agency in order for the host, the real economy, to return to healthy function.


This is what must be put into bankruptcy receivership, or nationalization. Every hour the Obama Administration delays that, and refuses to demand full independent government audit of the true solvency or insolvency of these five or so banks, inevitably costs to the US and to the world economy will snowball as derivatives losses explode. That is pre-programmed as worsening economic recession mean corporate bankruptcies are rising, home mortgage defaults are exploding, unemployment is shooting up. This is a situation that is deliberately being allowed to run out of (responsible Government) control by Treasury Secretary Geithner, Summers and ultimately the President, whether or not he has taken the time to grasp what is at stake.



Once the five problem banks have been put into isolation by the FDIC and the Treasury, the Administration must introduce legislation to immediately repeal the Larry Summers bank deregulation including restore Glass-Steagall and repeal the Commodity Futures Modernization Act of 2000 that allowed the present criminal abuse of the banking trust. Then serious financial reform can begin to be discussed, starting with steps to ‘federalize’ the Federal Reserve and take the power of money out of the hands of private bankers such as JP Morgan Chase, Citibank or Goldman Sachs.
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Crom Alternative Currency System
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