Mike Maloney Illuminates the Bankers

From GoldSilver.com.  Great presentation, definitely worth watching:

Mike Maloney was recently invited to speak at the 8th International Banking Forum in Sochi, Russia. The theme was “Banks Of Russia – 21st Century”. The purpose of the conference was for bankers from around the world to meet and discuss the current state of the global economy, the banking system, and strategies for protecting their personal wealth.

The first morning passed without too much fuss as each speaker gave an introduction and a brief on his or her area of expertise. However, by the end of the day it became obvious that something was definitely wrong. After speaking with many of the attendees, Mike was alarmed to find that practically none of the international bankers understood our present monetary system. Most had no idea how currency is created!

Here at GoldSilver.com, we have always wondered exactly how well modern day bankers understand the worldwide predicament that we find ourselves in. Ladies and gentlemen, our worst fears have been confirmed — the lights are on, but nobody is home.

[continues at GoldSilver.com]

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  • Disinfo Blocked My Comments

    Re: gold sales.

    “[A] dollar invested in bonds in 1801 would be worth nearly a thousand dollars by 1998, a dollar invested in stocks that same year would be worth more than half a million dollars. All this is in real terms, taking inflation into account. Meanwhile, a dollar invested in gold in 1801 would by 1998, be worth just 78 cents. The phrase, ‘as good as gold’ can be misleading as the phrase ‘money in the bank,’ when talking about the long run.”

    Thomas Sowell, Basic Economics

  • gemmarama

    welcome back!

  • Andrew

    I thought they just deleted one. Assuming they are blocking you, I’m going to click “Like” on your comment simply for your new name.

  • Liam_McGonagle

    Interesting. The guy does make his bread by shilling gold and silver, so I do have some initial reservations about taking him completely at face value.

    But the basic premise that the 2,000% increase in M3 as a % of U.S. money supply is central to our current fudged-up situmuation is spot on.

    I just think it’s a more little complicated by the fact that a lot of M1, M2 and other productive real-economy assets are tied up through the system through collateralization agreements, etc., etc. and radical concentration of securities holdings. According to William Domhoff, approximately 88% of investment assets were held by the wealthiest 10% of U.S. Society as of 2007.

    http://sociology.ucsc.edu/whorulesamerica/power/wealth.html

    [Table 2]

    So I would hold off before making a rush order to purchase gold or silver. A couple points seem intuitively obvious to me, some of which may run counter to Mr. Maloney’s scenarios:

    1. By virtue of the contamination of the REAL money supply–M1,M2–by bullshit M3, and control of M3 by the big banks and uber-wealthy, I think it’s those banks who have polticial power to determine its acceptability by the public, and are unlikely to precipitate a ‘rush on the bank’ by trying to liquidate their M3 holdings all at the once.

    2. When sh*t does hit the fan, and the larger public calls ‘shenanigans’ on M3, it’s the uber-wealthy and the big banks who seem to stand most to lose, because at the end of the day what makes the economic world go round isn’t bullshit paper, but tangible goods and services.

    3. Given #2 above, it seems clear to me that the best candidate to serve as a substitute store of value and medium of exchange in an unstable currency environment would be oil–not some bullshit gold or silver. No you can’t eat oil or wear it as clothing (although you can do so indirectly via food grown through petroleum-based fertilisers and oil-fueled tractors and through synthetic fibres). But what frickin’ good is some sterile rock gonna do you when you’ve got kids that need feeding NOW?

    And I’m not sure that many other countries are in a clearly superior position to the United States. Mix of natural resources and money supply integrity is tough to evaluate. Clearly the Irish money supply’s having its own problems, ‘specially in the light of the bullshit Anglo-Irish Bank situation. http://www.finfacts.ie/irishfinancenews/article_1020683.shtml

    All in all, I say the true significance of this article is:

    1. No American can afford to allow Republicans to come into power in November. Vote Dem. Don’t stay at home. Vote Dem.

    2. Start lobbying your senator or representative NOW to work on a bill taxing the investment securities holdings of large banks / wealthy individuals. This seems to me the clearest hope of bringing the eventual monetary collapse within control of the people, instead of spiraling out into chaos or fascism.

    • Alturn

      Life is about life, not money. Money has become so corrupted that it will implode in some fashion. Malloy may be right in describing part of the root cause but his conclusion is not necessarily on target.

      Liam is correct it is about people power – when it all falls apart collectively regular people will have the wisdom to rebuild the system with a system based on sharing that does not include the banks as we know them or wall street. That includes a government of and by the people, not a few crony capitalists.

      “The voice of the people is the voice of wisdom.”
      - a Master of the Wisdom

  • Liam_McGonagle

    Interesting. The guy does make his bread by shilling gold and silver, so I do have some initial reservations about taking him completely at face value.

    But the basic premise that the 2,000% increase in M3 as a % of U.S. money supply is central to our current fudged-up situmuation is spot on.

    I just think it’s a more little complicated by the fact that a lot of M1, M2 and other productive real-economy assets are tied up through the system through collateralization agreements, etc., etc. and radical concentration of securities holdings. According to William Domhoff, approximately 88% of investment assets were held by the wealthiest 10% of U.S. Society as of 2007.

    http://sociology.ucsc.edu/whorulesamerica/power/wealth.html

    [Table 2]

    So I would hold off before making a rush order to purchase gold or silver. A couple points seem intuitively obvious to me, some of which may run counter to Mr. Maloney’s scenarios:

    1. By virtue of the contamination of the REAL money supply–M1,M2–by bullshit M3, and control of M3 by the big banks and uber-wealthy, I think it’s those banks who have polticial power to determine its acceptability by the public, and are unlikely to precipitate a ‘rush on the bank’ by trying to liquidate their M3 holdings all at the once.

    2. When sh*t does hit the fan, and the larger public calls ‘shenanigans’ on M3, it’s the uber-wealthy and the big banks who seem to stand most to lose, because at the end of the day what makes the economic world go round isn’t bullshit paper, but tangible goods and services.

    3. Given #2 above, it seems clear to me that the best candidate to serve as a substitute store of value and medium of exchange in an unstable currency environment would be oil–not some bullshit gold or silver. No you can’t eat oil or wear it as clothing (although you can do so indirectly via food grown through petroleum-based fertilisers and oil-fueled tractors and through synthetic fibres). But what frickin’ good is some sterile rock gonna do you when you’ve got kids that need feeding NOW?

    And I’m not sure that many other countries are in a clearly superior position to the United States. Mix of natural resources and money supply integrity is tough to evaluate. Clearly the Irish money supply’s having its own problems, ‘specially in the light of the bullshit Anglo-Irish Bank situation. http://www.finfacts.ie/irishfinancenews/article_1020683.shtml

    All in all, I say the true significance of this article is:

    1. No American can afford to allow Republicans to come into power in November. Vote Dem. Don’t stay at home. Vote Dem.

    2. Start lobbying your senator or representative NOW to work on a bill taxing the investment securities holdings of large banks / wealthy individuals. This seems to me the clearest hope of bringing the eventual monetary collapse within control of the people, instead of spiraling out into chaos or fascism.

  • Liam_McGonagle

    I think Mr. Sowell should have entitled his book “Basic Mathematics”, instead of “Basic Economics”.

    What you’ve quoted there is the result of a time value of money calculation. Any 10 year old can perform that. No special insights there.

    And it totally ignores the unavoidable real-economy facts of inflation, changes in money supply, currency stability, and the simple credit worthiness of the entity guaranteeing payment.

    Unless there’s some magic gems of wisdom of Sowell’s you haven’t quoted to date (God, could there be any you haven’t?), I’d have to say he seems like a very mediocre feller indeed.

    But, by the way, welcome back. It is nice to have a sparring partner out there.

  • Alturn

    Life is about life, not money. Money has become so corrupted that it will implode in some fashion. Malloy may be right in describing part of the root cause but his conclusion is not necessarily on target.

    Liam is correct it is about people power – when it all falls apart collectively regular people will have the wisdom to rebuild the system with a system based on sharing that does not include the banks as we know them or wall street. That includes a government of and by the people, not a few crony capitalists.

    “The voice of the people is the voice of wisdom.”
    - a Master of the Wisdom

  • Nano-Thermite

    Beautiful! Great Post!!

  • Nano-Thermite

    Beautiful! Great Post!!

  • Haystack

    May I suggest that you save yourself some trouble and just use “Thomas Sowell” as your next account name? *g*

  • gemmarama

    welcome back!

  • Andrew

    I thought they just deleted one. Assuming they are blocking you, I’m going to click “Like” on your comment simply for your new name.

  • Liam_McGonagle

    I think Mr. Sowell should have entitled his book “Basic Mathematics”, instead of “Basic Economics”.

    What you’ve quoted there is the result of a time value of money calculation. Any 10 year old can perform that. No special insights there.

    And it totally ignores the unavoidable real-economy facts of inflation, changes in money supply, currency stability, and the simple credit worthiness of the entity guaranteeing payment.

    Unless there’s some magic gems of wisdom of Sowell’s you haven’t quoted to date (God, could there be any you haven’t?), I’d have to say he seems like a very mediocre feller indeed.

    But, by the way, welcome back. It is nice to have a sparring partner out there.

  • Haystack

    May I suggest that you save yourself some trouble and just use “Thomas Sowell” as your next account name? *g*