TREATY FOR EURO TRANSITION

Do you know how many European summits have been held to tackle the economic debacle or should we say the Euro crisis?

It is hard to say. Every new European summit is announced like the last chance. Meanwhile I guess the only leader still standing since the beginning of all these crises is Angela Merkel. All the others have been thanked for their loyal service to their countries and kicked out by an increasing frustrated population.

The question is, why this stubbornness, what makes these politicians not understand economic cycles or economic logic. It is not like we just started studying economy. Great economists have existed, written books and helped us understand economy.

Ok, it is true that others have come along and have been creative in changing or altering the natural cycle of economy with the help of centralized planning. Yes, I am talking about Keynes.

In the long run, however, these artificial policies will eventually hit the wall. 

The question is how much longer can the EU drive up the debt burden before they understand that it is unsustainable?

Actually, the european politicians seem to be the only ones that have missed their math classes, since the market has already given up on the Euro.

It is inevitable, no matter, how much these pseudo-politicians try to grab onto the Euro, or try to convince the public, or should I say themselves, that the Euro is a valid idea, that the Euro will finally collapse.

I am sure that the smart heads of the EU already started working on an exit policy, but if we see the way they have been dealing with the problems so far, there is little hope they will come up with a believable and successful plan.

So, although I think we should completely abandon the fiat money and centralized monetary system that has driven us to the actual disaster, I don't think we will be able to get there without catastrophic wars. Let me try to give a transitional/pacific and workable solution.

1st Step: Dual currencies in the actual EMU countries.

Some countries will function with their own currency and the Euro.

All local services, products, work, etc will be traded in the local currency and that currency will float against the Euro, which will still be the currency in other countries like Germany, France, The Netherlands, Finland, Austria, Luxembourg, etc. The countries that think they can benefit from a strong currency because they mainly trade highly advanced and technological goods.

Countries in the periphery like Portugal, Spain, Italy, Greece and Ireland would go back to their former currencies, back to the values they had at the beginning of the Euro and starting floating (read devaluing) from there. So the local currency would again be used by the countries for day to day transactions, while companies could still do international trade or european intratrade in Euros. Companies would only have to check the daily rate of their currency against the Euro to quote their price. This will also allow other countries that do not make part of the EMU to peg their currencies to this system.

For example a company in Spain that would have a cost price X + margin = sales price, would convert that price into Euros and a company in Germany or in Portugal would be able to buy that product in Euros.

Example:

Cost price + Margin = Sales price (Convertion rate) = Sales price in Euros

1000 pesetas + 20% = 1.200 pesetas (1 Euro = 200 pesetas) = 6 Euros

A company in Germany could disburse 6 Euros (the German currency) for that product. The spanish company will receive 6 Euros that it will be able to keep in Euros or convert into Pesetas, depending on its needs. Spanish banks will have a dual balance, like they had in the introduction phase of the Euro, a value in pesetas and the corresponding value in Euros (at the daily rate).  People will be able to keep Euros in savings bank accounts as reserve currency, although local transactions would be done in pesetas.

This will allow the spanish central bank to keep Euros and have the money to pay imports by Spanish companies and keep the spanish central bank within and supervised by the ECB system.

All of a sudden the Euro could really become a reserve currency, since it will be backed by strong economies and even other countries in the world would be interested in buying Eurobonds. (A % of the Eurobonds could then go to EU structural funds to invest in modernization of peripheral countries productivity)

This will give the time for countries in the south to readapt to global economy.

Travelling tourists will still be able to go to these countries and change their Euros into local currencies, knowing the rate they will receive, since it will be an open and public rate. It is up to the countries to have legislation to counter profiteering from the exchange in the exchange houses or banks.

Electronic purchase would not have a problem since there would be no exchange service delivered and the daily rate would be applied by the banks.

This however leaves still a significant problem: What will happen to the debt countries would have in Euros?

Different possibilities are possible. They could just be translated into local currency at the beginning of the transition phase but this would again create an extra punishment on the people of the countries.

2nd Step: Write off the debts

These debts need to be written off. There needs to be a significant haircut to make the debt burden sustainable and payable to these countries.

These debts exist because for a big part they were created by fractional banking money. This would mean that especially banks will have to write those debts off. This would indeed be devastating for banks but this would bring them back to their real value and not their actual inflated reality.

Banks and bank shareholders would be the losers of such a process but not all the banks, since there are many institutions that have not engaged in such behavior. These entities would continue to service their customers. Countries and the ECB would have to guarantee the minimum security deposits in every country and maybe create a state bank that would in the transition phase absorb the deposits and control bank runs. 

All of a sudden sound capital (capital from savings) would be liberated and would again find a reason to invest in countries and a renewed economy.

This however would only be a transition phase until we go back to (capital based money). Money that would be based on a basket of products (gold, silver, gas, oil, agricultural and industrial production capacity, savings). 

We need a competitive monetary system. The idea that a bunch of white folks (untanned) sitting in their ivory towers in Frankfurt or in Washington can decide the price of money is just absurd. Politicians need to go back to school and understand the creation of capital and wealth and later explain it to their population.

I know there are many more details that would have to be taken into consideration but at least the EU would not lose its face and gain extra oxygen to reinstate a competitive environment.

The path we are walking now is doomed to fail.

Most europeans are proud of Europe. They are proud of what was achieved, free movement of capital, people, services and products. They love to be able to trade with each other, to go study/work abroad, move around freely, etc. but they did not sign for this Europe. 

The actual Europe however, instead of enhancing the growth of their citizens is driving them into serfdom and poverty and are using the Euro for this purpose.

James Tector,

Liberté, Egalité, Fraternité

THE SECOND WORLD

It is interesting to observe evolutions in modern society. A long period of initial shocks (economic and wars) at the beginning of last century gave place to a new deal, creating economic prosperity in the western world. Although much of this increase in wealth was due to exploitation of many 3rd world and developing countries, it kind of gave an equilibrium to the world and allowed the first world to prosper in many ways.

Actually, the first world never had such a long period of prosperity which can be better measured in the increase of life expectancy. 

The fall of the iron curtain, however shifted this equilibrium into the victory of capitalism. The winning doctrine of competition and liberalism was the way to go. However, time has shown us that like in sports no victory lasts forever if the winner does not keep in shape. 

The problem of capitalism are not the values of competition and innovation, the problem of capitalism that emerged after defeating communism was the lack of these values. Capitalism that emerged after the fall of the iron curtain was almighty and nobody dared to question its imposition, no matter which captain was steering it. 

However, we were fooled to believe that capital was money and not the production of wealth. The moment this illusion became mainstream, problems started. Especially the fact that the US could keep printing endless money and always found buyers perpetrated the illusion and added to the mirage. 

The problem is that Real Capital is not money or the accumulation of money but something completely different.

- Capital is not money, Capital is the creation of wealth.

- Capital is when innovation and creativity contribute to solution problems in society. 

- Capital is not the accumulation of money, especially if the latest is fake.

However, the mainstream ideology was that money was capital. Well, then let's examine this fact.

I guess most of people would agree with the statement: Money is power!

Well, imagine you would have the power to create money out of nothing, whenever you liked or needed it. I guess you would be a powerful person and could do what you would like without taking others into consideration. That is  what is happening now, creation of a fake capital that does not take into account economic reality. The root of our problems!  We have entities that have that power and are accountable to no one except their own interests. This kind of capitalism is unfortunately the capitalism that has reigned for the past 40 years and like everything artificial, eventually reality is going to catch up.

Anyway, now that we are seeing the consequences of what this well engineered illusion has brought us to, we can start to see an interesting consequence:

The emergence of the Second World

What is the Second World? The second world are the countries that used to make part of the first world but were relegated to second division. However they still have the infrastructures acquired while in the first world. Transportation, Education, Political System. Societies in quick decay.

These could be the countries in the periphery of Europe which are slowly but surely going into serfdom mode. Serfdom to the stronger countries of Europe who will use these Second World countries for their leisure and food supply.

It is actually interesting to see how the political leaders of the Second World countries are dealing with the situation; exactly the same way they were pulled into the first division, following the dictatorship of the first world countries. It is becoming more and more obvious that all the PIIGS (Portugal, Italy, Ireland, Greece, Spain) countries have been for a long time run by Germany and France. Just see how the Second World politicians keep going back to Europe to ask for guidance! 

Should we punish our citizens more? Starvation could get rid of a bunch of them! Please, IMF (International Mafia Federation), EU (Enforcement Unit), ECB (European Counterfeit Board) tell us what to do. We have fared well all these years pretending being politicians, (following your orders) don't let us down now.

An interesting additional phenomenon is that the Second World is formed by 2 groups:

THE WANNABES

THE FALLEN

The Wannabes are the countries that always wanted to be part of the first world and have tried to emulate them. In this group we have Portugal and Greece that all of a sudden thought they could join the first world faking reality. Cooking the books was no problem as long as they could join the select group.

The Fallen are Spain and Italy that deep down feel they make part of the first world but somehow do not seem to get accepted. They know they have a great history but don’t understand why that alone is not enough to join the First World.

I think it is important these PIIGS countries understand their strengths and start working on gaining back their dignity. Forget the fake capital system imposed by the first world. The faster you understand what real capital (wealth) is, you guys will teach everybody a lesson. Your countries used to be at the forefront of civilization. You got there not because you had paper money. You got there because you were at the forefront of innovation, creation, discovery. Your countries are blessed by nature and your culture a landmark for all civilizations. Think about all the Greek great thinkers and their contribution to the development of a civilized society, the roman empire, the spanish and portuguese conquerors. 

Create your own league, a league based on common sense, reality, innovation, creativity and quality of life. Create capital, real capital and let the First World be the leaders of fake capitalism.

James Tector

Egalité, Liberté, Fraternité

POLITICIANS OR "FEAR PROPHETS"

Words are important for communication. We use words to communicate a message thinking that the other party (the receiver of the message) will give it the same interpretation we were trying to render. However, here lies a fundamental problem of communication, the receiver oftentimes interprets the message in a different way or gives words a different meaning than what the sender was trying to transmit.

Therefore we normally have dictionaries that try to give unified sense to words. Wikipedia has been challenging the scientific society and generated a popular enciclopedia that many times has excellent descriptions of words. So let's give it a try and let's see what wikipedia means by the term politician before I go deeper into my understanding of politicians:

A politician, political leader, or political figure (from Greek "polis"="city") is someone who is involved in influencing public policy and decision making. This includes people who hold decision-making positions in government, and people who seek those positions, whether by means of election, inheritance, coup d'état, appointment, electoral fraud, conquest, divine right, or other means. Politics is not limited to governance through public office. Political offices may also be held in corporations, and other entities that are governed by self-defined political processes. (Source Wikipedia)

Browsing through the definitions in different languages they all seem to agree with the english definition.

"A politician is somebody who is involved in influencing public policy and decision making or who makes part or wants to make part of the political system."

This could accurately define actual politicians although I would call the first part, politicians and the second part a better definition for bureaucrats.

Anyway, this is our reality and we can agree that the definition responds to the perception of the contemporary politicians...... and that is my problem.

We don't need politicians/administrators we need visionary leaders that influence public policy and decision making. We don't need politicians that influence public opinion and decision making enforcing what they have been trained to.

Our politicians have been "kidnapped" by corporations and financial institutions. We live in a fascist system where the politicians impose pain, austerity and fear on populations. Our politicians are "Fear Prophets" blackmailing populations with disaster and armageddon if they stop voting for them, or don't support the system at any cost.

What happened? Where have we gone wrong? Where are the leaders that used to be respected and guide folks for a better tomorrow?

It is actually a good question and I don't have enough space on this blog to deepen into the question but have to accept that mediocrity has invaded politics. Today's politicians are the ones that always wanted to be the class spokesperson and never made it. The followers that sheeply followed the cool guy in class or the hottest chick. The losers of your youth.

They found in politics their perfect playground where flip-flopping and asskissing is rewarded with a rising career.

How can we expect these people to lead us? How can we expect these people to develop a vision for the future of their people? Simple: WE CAN'T.

That is why the best thing these elected citizens can give us is falling in alarming and disaster rhetoric, injecting fear in the population for the breakdown of the system. Some of their favorite prophecies:

"The end of the Euro would have disastrous consequences"

"Either you vote for me or we are out of the Euro"

"Austerity is the only way out of the crisis"

"Either you vote for me or the IMF is not going to keep giving us money"

"We have to save the banks otherwise the economy will collapse"

"The new parties are anarchists, communists, socialists"

These are their projects, these are their arguments to influence decision making?

Well, I might be naive but I had a different opinion about the objective of a politician. 

I confess: I was mistaken in my idea that politicians were visionaries, had plans and motivated those ideas to people. I was under the wrong impression that they had ideologies. I was wrong when I thought they had an idea about economy. They don't.

Today's politicians are nothing more than "Fear Prophets".

Politicians have become puppets paid by the system to keep the system going.

Politicians, don't you feel ashamed? Don't you have any dignity at all? Don't you dare give an audacious opinion, or just your very own humble opinion? Of course you don't you never had one in the first place. We should ban teleprompters or even better, turn off television, stop reading or listening to your propaganda and like minded media.

Conclusion: 

Don't expect politicians to lead us out of the situation or guide us into the future. People your are the only one that can do that.

James Tector

Liberté, Egalité, Fraternité

Greece, Cradle of Civilization 2.0

GREECE, CRADLE OF CIVILIZATION 2.0

Greece is many aspects an interesting country. Lately it seems to have bought a permanent spot on the daily international news, not necessarily because new archeological treasures were discovered or an Onassis family member married a celebrity. Greece has become the problem child of the European and world developed countries.

What happened to the place considered  by many the cradle of civilization? Where did they go wrong? How can we safe them?

I am sure a lot of people already answered these questions. All too often, however, their analysis happened from a Calvinistic, patronizing and demeaning thinking pattern, blaming the Greeks for their lack of discipline and seriousness.

All the Greeks were put in the same basket: "Lazy, sun loving, tax evading troubadours". Some even said Greece embraced a new political ideology: Diogonesism. 

The rest of the European partners could not tolerate such behavior. Everything had to be put into place to safeguard corporatism and the financial markets. Serfdom of the people was at stake and Greece was the weakest link in a perfectly designed serfdom system.

Power had to act. The "puppets" (Merkel, Sarkozy, EU Commission) were called in and ordered to blackmail, I mean Help, Greece with the same medicine that was killing the patient, more Debt. More debt yes but this time designed in such a way that it would cripple Greece so strong they would never dare challenge orders from their "protectors" again.

So, the helping hand acting together with their local cronies (Papandreu, Venizelos and other politicians) started taking away wealth of the Greek people. Thousands of companies closed, hundreds of thousands of people lost their jobs. Infrastructure and natural resources of Greece started to be given away for pennies on the dollar to the "foreign savers".

The humiliation and punishment had to be strong and merciless. No other country should dare to follow the same path and Greece had to be taught a lesson. How dare Greece challenge the sovereignty of the ruling system? No victims were to be accepted, even when the Greek prime minister demonstrated weakness (asking for a referendum) he was immediately dismissed. The message was so clear that even Italy dare not to question the imposition of Monti. Papademos and Monti, bankers, i am sorry again, I meant technocrats knew how to administer a country at least better than democratically elected politicians. Again the actual crisis had nothing to do with the recklessness of the financial system, no, democracy, the will of the people, was the problem.

Greece has definitely contributed to the civilization of society, defining moral, ethics and common sense (logic). It has been, at least documented, one of the first civilization that experimented freedom of people and thinking. Today we still cite many of their philosophers when we talk about justice and even about a fair system. It might be true that Greece has been for many years living of the legacy of these great thinkers. Unfortunately, copyright laws did not exist back then, otherwise we would all be in debt with Greece.

After last weekend's, 6 May 2012 elections however, I think Greece is again at the forefront of civilization. Civilization 2.0.

The Greeek have understood that there is only one way to regain their sovereignty: Bring down the system. Greeks seem to have understood what the Achilles heel of the system is. Ungovernability. Although many commentators "usual suspects" might say that this is a problem for the actual situation of Greece. Actually, this is the only peaceful way to break the system. No powerful government is the best that can happen at this moment because Greeks seem to have understood that their biggest enemy is: government. Governments can enforce the directives of the powerful through their executive mechanisms, EU, IMF, ECB, laws.

A lack of enforcement power will generate a self-working society, where personal freedom will flourish and create the wealth and society that Greeks want and not a society imposed by a destructive blood-life sucking system.

Don't worry, the system will fight back. It will find ways to continue imposing harm on the Greeks but the Greeks have found the weak spot and I think the next protest of the Greeks will not be so peaceful if they feel that their sovereignty is under attack. The next step will be much more violent.

Greece, keep hanging in there. Don't let the politicians fool you. Keep atomizing power and rebuilt your own country without interference and impositions. Thank you for questioning the system, than you for asking "Why". Socrates would be proud of you.

Thank you for illuminating us again and showing us the way. Greece, cradle of civilization 2.0.

James Tector

Liberté, Egalité, Fraternité

Uncovering the enemy

UNCOVERING THE ENEMY

After a few months into 2012 and almost four and a half years after the financial meltdown of 2008 the economic situation does not seem to show signs of improvement.

Different governments have been replaced since 2008 in almost every election held in Europe. The elections have most of the times been a punishment for the ruling parties and voters chose, almost everywhere, the opposition party, who promised to do things better.

Nevertheless, daily life of citizens is not improving. Rampant unemployment, lowering residual income, increasing fiscal pressure and harassing banks are all contributing to frustration among the population.

Normally the newly chosen ruling parties start blaming their predecessors for all the problems inherited but when they run out of ammunitions, politicians always find new enemies.

Markets, terrorists, anti-patriotic opposition parties, foreigners, unions, public servants, demonstrators, anarchists, occupiers, etc. etc, are all conspiring against them. Not only is it pathetic to have to listen to these lame excuses but the "real problem" is that too many people buy their stories.

How often can we see people defending or attacking the arguments fed to them by unscrupulous politicians? It is understandable that if we vote for a specific party, we feel like defending their policies. Voters are able to defend austerity measures, increase in taxes, loss of freedom and other "so needed" attacks on the individual to justify their choice. Instead of accepting that our vote was meaningless we prefer to focus our anger on outside causes like terrorism, immigration, neighbor, etc.

WAKE UP PEOPLE! YOU ARE FIGHTING THE WRONG ENEMY!

Stop believing these so called politicians.  They are administrators paid by the "fiat money vigilantes". We the people are like Human Resource managers making the final decision in the process of choosing the new "puppet" presented to us by the powerful. The "puppets" however are paid by the real rulers. We choose them in elections but they are accountable to others.

STOP FIGHTING AMONG EACHOTHER, UNITE TO DEFEAT THE REAL ENEMY

Who is the real enemy and what can we do to fight it?

It is tough to pinpoint a specific person or organization. The enemy is a "system" that has found a way to perpetrate itself. This very "system" is perceived to be more important than the individual or human life.

How else can we explain that we prefer to have people starving or dying than to question the "system"? We prefer to have wars, austerity, inflate the value of our savings, pushing millions of people into slavery than harm the system.

But what is the system and how is it designed?

Ask yourself a simple question. Do you agree with the statement: MONEY IS POWER

If you do, like most of you will you are getting closer to uncovering the enemy but let's start with the top of the hierarchy.

1. CENTRAL BANKS

Imagine that you would have the power to create money out of thin air. Wouldn't this give you unlimited power? Do you know who can do this in our actual world?

The FED, ECB and comercial banks through the fractional banking system.

Even governments do not have this power anymore. If governments want to create money central banks loan them that money with an interest rate. So if money is power and governments get a good part of the new money from independent central banks; doesn't this make the money creators more powerful than governments?

2. CENTRALIZED POWER

Now, imagine, you would have the power to write laws? How many laws would you write to harm your interests or the ones that rule your wellbeing?

When you give sovereignty away to a central power, it is very probable that with time that central power will drive you into slavery. They will gain more and more power so that they can guarantee a "safer society". A safer society translating into paying taxes and obeying central commands. The more power is centralized, less freedom the individual has. A democracy is especially vulnerable to this situation since it is the imposition of the will of a majority on minorities. We need a constitution that guarantees our civil rights, even and specially against democratically elected governments. No excuse is acceptable to strip the individual from his liberties.

"I rather live a life of unsafe destiny than a safe life in slavery."

3. CENTRALIZED RESOURCES DISTRIBUTION

Although there is competition in private markets, some companies have gained such a position that their power has run out of control. Some companies exploit and control natural and primary resources, have such amounts of wealth that they can buy anyone they want. These companies are not a real treat if point 1 and 2 are brought down but they are now making part of the system and fight hard to keep it standing.

But let's face it. Although we could actually understand that we have to bring down the centralized rulers of the world by asking for sound money, minimizing the scope of government action and limiting natural resources control of corporations, we still would have to fight the toughest of all enemies:

WE THE PEOPLE

We the people believing the lies of our politicians, mass media or opinion makers.

We the people living in fear, dare not to speak up and question.

We the people that have accepted the status of consuming machines.

We the people that have lost faith in our capacities and accepted serfdom.

WE THE PEOPLE, ARE THE REAL ENEMY.

BUT…..

WE THE POEPLE, ARE ALSO THE SOLUTION.

Never in history has humanity have so much access to knowledge, technology and wellbeing. Never in history have the powerful been exposed, on a worldwide basis, like now.

A better world is possible but a better world can only been possible if we start respecting and enforcing the individual. Only by claiming our individual freedom and liberty can the actual system be defeated. We need a new worldwide “constitution” (see revolution) that guarantees individual freedom and civil rights.

Inform yourself. Analyze, understand the consequences of our actual system in your life and fight to change it. If you don't do it for yourselves, do it for your children. Give them a reason to be proud of their parents.

James Tector

Humanity Fraud Detective
Liberté, Égalité, Fraternité

CORRALITO (BANK RUN, BANK HOLIDAY)

CAUTION:
The following story might become real in the near future

After another frenetic week in the stock markets all around the world, people were preparing for a well deserved weekend.  It seemed like a normal weekend. Getting home for the weekend, many started their weekend routines, spending time with kids, planning a night out with friends, go to the movies with their future wife/husband or just simply watch television.

The population had been looking forward for this particular weekend. It had been a week of abundant bad economic data with a midweek’s reassuring president’s speech, promising to have total control, the people must consider itself lucky to have such visionary, strong and caring leaders.

The one’s that decided to go out on some kind of social happening were the first ones to start experiencing strange circumstances. There were a lot more policemen on the streets than normal and somehow, they had problems finding a working ATM. The system was probably down in the neighborhood.

The one’s that stayed at home, watching television, on the other side were surprised when the sports game they were watching was interrupted for a special announcement from president himself. What is going on? Are we under attack?

PRESIDENT: Quote:

“Ladies and gentlemen”, as I am sure you are aware of, the past years have been difficult on many fronts and lots of people have been suffering from the economic situation. This past week we have been under attack by heartless speculators that targeted our country to rip the people off their wealth but we will not allow this to happen. I will personally make sure that these financial predators will face all the legal consequences of their acts.

This is why, after careful consideration with the best economic experts, long talks with different world leaders, my administration has decided that it was in the best interest of the country and of the citizens to call for a bank holiday.

All bank accounts in our country will be frozen till further notice so that we can stop the plundering of these heartless financial speculators.

The president went on for a few more minutes explaining the latest executive order trying to stop the financial meltdown happening not only in his country but all around the world.

Of course this move had an immediate effect on the population and televisions commentators were trying to calm people and others blaming the president. The Internet crashed under searches for an explanation. A word became "trending topic" on the net: “Corralito”. 

Corralito was the informal name for the economic measures taken in Argentina at the end of 2001 by Minister of Economy Domingo Cavallo in order to stop a bank run, and which were fully in force for one year. The corralito almost completely froze bank accounts and forbade withdrawals from U.S. dollar-denominated accounts. (Source Wikipedia)

Are we at the level of Argentina? Could this be true? Is it possible? We thought we were superior and our leaders were much smarter than the one’s in the south.

Shit, let’s see what else the “Corralito” caused in Argentina:

• The corralito caused an immediate backfire on the government. Even more people started trying to withdraw their money from the banks, and many ended up in court fighting for their right to have their funds (and being granted that right on occasion).
• The main reason for ending up in court was that, after the corralito, and after Economy Minister Cavallo resigned, the new government led by Eduardo Duhalde and his Economy Minister Roberto Lavagna converted those funds nominated in US Dollars, into Argentine Pesos at a 1 Peso = 1 US Dollar exchange rate, while the exchange rate was liberalized (immediately going to 4 Pesos = 1 US Dollar).
• The same was done with debtors, so many private enterprises and also the Province of Buenos Aires were favoured by this measure as they managed to decrease their debts. Nine years later, several people have not yet been able to recover their savings because of the pace of Justice in Argentina. However, debtors were able to purchase properties and other items by paying their debts at the 1 to 1 exchange rate.
• At the time, the average Argentine did not employ the banking system for daily uses; many did not have a personal bank account, and dealt only with cash. Debit cards were not popular and many businesses did not have the equipment to accept them. Thus the cash restrictions only exacerbated the recession and angered the public. President Fernando de la Rúa was forced to resign on 20 December 2001 after violent riots, but the restrictions of the corralito were not lifted at the time. (Source: Wikipedia http://en.wikipedia.org/wiki/Corralito)

Our currency is US Dollars, I guess this is not going to affect us and we have a good functioning justice system too. Government will never be allowed to do this…… oh shit, they just did!

Could it be that the government is using this to devalue the USD and lower its debts artificially? That is smart but my savings will loose value too…, what is going on, what else could happen?

• Because of this allowance limit and the serious problems it caused in certain cases, many Argentines became enraged and took to the streets of important cities, especially Buenos Aires. They engaged in a form of popular protest that became known as cacerolazo (banging pots and pans). These protests occurred especially in 2001 and 2002. At first the cacerolazos were simply noisy demonstrations, but soon they included property destruction, often directed at banks, foreign privatized companies, and especially big American and European companies. Many businesses installed metal barriers because windows and glass facades were being broken, and even fires being ignited at their doors. Billboards of such companies as Coca Cola and others were brought down by the masses of demonstrators.
• Amid rioting, President Fernando de la Rua resigned on 21 December 2001.
• Confrontations between the police and citizens became a common sight, and fires were also set on Buenos Aires avenues. Fernando de la Rúa declared a state of emergency,  only to get the situation worsened, precipitating the violent protests of 20 and 21 December 2001 in Plaza de Mayo, where clashes between demonstrators and the police ended up with several people dead, and precipitated the fall of the government (Source: Wikipedia http://en.wikipedia.org/wiki/Argentine_economic_crisis_(1999%E2%80%932002))

This is not possible. This is not happening to us. What can we do? What should we do? When will our money be unfrozen again? How am I going to eat tomorrow? How can I pay the gas to make it home tonight? What do they mean with state of emergency? Martial law?

A lot of questions and no reassuring answer.

It is interesting that after all what happened in the past years, basically since the start of the financial crisis in 2008, which turned into a sovereign and economic crisis, so many people continue to trust the people that put us into this situation. Not only do they vote for them with new elections but they still think that they have the solution. They also continue to trust their banks. 

How can this be? How can you put the arsonists in charge of the fire fighters. 

The financial industry took over the world and little by little, populations are becoming slaves to the orders of the financial masters that use politicians as foremen. 

Understand who the real enemy is. Let me reassure you, it is not the one they say or try you to focus on. It is not the immigrants, it is not the Muslims, it is not a specific country, it is not a particular political party, it is not the poor. 

It’s the centralized money printing mafia, FED, Central Banks and their puppet foremen, politicians.

The population is on the road to serfdom if they don’t understand what is going on and stop accepting the rules imposed on to them by the system. Reject their Fiat Money and perpetual debt system. Reject the dictatorship of the loan sharks.

Declare yourself independent of the financial system or you will be slaves to the financial masters. Stop using their system, start using alternatives.

By the way, the one’s that were keeping gold, silver or any other precious metal, somehow came out winning from the Corralito.

James Tector
Critical Citizen

Liberté, Egalité, Fraternité


(Note for my spanish friends, although I don't like to put dates on certain predictions I make, but I think 2012 Spain will experience his very own Corralito, Bank run)

AND THEN THEY TOOK US TO WAR

In my next article I will be talking about what I think will eventually be the result of the change we are experiencing. But today let’s talk about the next-to-last step.

We are experiencing how the western world is getting totally out of control. Politicians have lost all credibility, trying to burn their last ammunitions killing supposed terrorists around the world, increasing their control of the population preparing themselves for the people’s revolution. In February 2011, I wrote an article about the Arab spring, “Tunis, Thank you for showing us the way”, and was predicting that this horror scenario for the power structures would be emulated by more countries. Later came Egypt, Libya, Yemen, 15M in Madrid, demonstrations all around Europe, especially in Greece and now we are seeing the United States finally joining the revolution with the “Occupy Wall Street” movement.

The mass media, like in every country, first ignored them, later ridiculed them and finally did not have any other choice than covering the movement. The most common critic all over the world used by mass media was that the movement does not have one voice, one message or clear claims.

I understand the mass media’s complaints. They have been used to repeat simplistic propaganda feed to them by their usual sponsors: multinationals, banks, governments, public entities, and the like, that all of a sudden a complete change in their modus operandi is just too much for the media too handle.

Well, let me give you a little hint, what about Frustration or Anger as a common denominator for the protests?

The continuing meltdown of the global financial system will definitely have its consequences on the global economy, whipping out middle class. Millions of citizens will awake to a new reality. They will find out that they thought they were wealthy, some of them even thought they were rich.

Many people are already in this situation and these are the people protesting, joined by some of the “early discoverers”, folks who are still enjoying security the system offers but know it is a matter of time before they too will make part of the jobless, futureless losers.

Yes, some people call the jobless, losers, because they are not good enough to get a job, or not qualified enough for some company to hire them. A lot of folks still do not understand that the game is rigged, that the system is causing this situation, not necessarily the lack of skills of the unemployed.

At the moment we are experiencing the perfect storm:

MONETARY INFLATION

+ PRODUCTIVE DEFLATION

(Strong increase of money supply in the financial industry and an even stronger decrease of capital in the real economy)

This has a direct consequence on companies. No matter how good a company or professional is, there is just not enough money to sustain everybody in the system. It is not necessarily the wrong or bad management of companies that will cause them to shut down; the system does not have the money to support them.

So my conclusion is simple: no matter what the politicians try to do and they have done everything they could to speed up the end of the system: “FIAT” is collapsing.

The question that presents itself: Will the actual powerful accept the end of an era and help create a new an more equal world?

Well, I don’t think so. They are not going to abandon their power just like that.

FIAT is not a love story, it’s much stronger than that

FIAT is blind faith.

So, what is the next step?

They will take us to war!!

Yes, it is my strong believe that when they will understand that people will continue to protest and revolt until they bring down the system, they will come up with some kind of scheme to take us to war.

We can already see how countries are getting more and more xenophobic. Just look at the increase of the anti alien rhetoric of politicians or political parties or at more stringent immigration laws voted in the past couple of years.

Some “opportunist” or “wannabe” politicians play the immigration card bluntly, blaming the problems on outsiders, forgetting the hundreds of years the so called “civilized countries” have been exploiting natural resources and lower wage labor of poor countries.

I don’t know yet who is going to be the scapegoat this time. The Jews were the last victims, this time it could very well be the Arabs with a preference for Iran, Southern Europeans, Latin Americans or the Chinese.

They might actually go for religion and our Muslim brothers would seem the easiest target to sell to a bunch of lamming’s in the western world.

This of course would be the easiest type of war but who knows this time they might even go further and simply declare war on the “anti-social” movements, targeting their own people and repressing the protesters that disobey the system. This war is tougher because this would bring guerilla like confrontations and I guess they would prefer to play the patriotic card and I think they would prefer to go for a whole region rather than wars at home.

Well, it is difficult to predict which one they will come up with but they will definitely try.

Be prepared. It is up to us the people to say NO. Don’t let them fool you. Don’t buy into their propaganda. We are all human beings. We all live on this earth and we should embrace change and work on a better system. A war is only going to bring back the Status Quo, with less a few million people but the problem would remain.

FIAT is dying and not only because of the SPECULATION ON STEROIDS but simply because there is a natural limit to artificial growth. FIAT does not take the economic logic into account (management of scarcity) since there is no physical limit to worthless printed money.

Don’t forget, we are all human beings and we have more things that unite us than that separate us. Be aware for fear mongering, false accusation, finger pointing or false flag attacks.

Stand up and join the movement.

James Tector

Critical Citizen

Liberté, Egalité, Fraternité