The beginning of the meltdown. The risk of financial disaster was known. Who is to blame?

back in history you wish to go in order to determine who was responsible for establishing the structure and mechanism of the monetary system within which our ancestors were induced to live.

I recall reading a recent article, written by Pat Buchanan, in which he laid the blame on the baby boomer generation for their frivolous and undisciplined consumption habits. Exactly how he "missed" the enabling events of previous generations, his own included, is something of a mystery to me, as he didn't think it relevant to offer any explanation.
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"An economy built on fiat money is a society on its way to ashes."

the blame belongs only to the federal reserve specifically greenspan, and the US government.. they are the only 2 entities who deserve all the blame for what is happening!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

but I'll bet his last anme starts with R. othschild or ockefeller, probably both.

They are using all of this to control you with fear.

The market is under their complete control.

If they want to go up it goes up if they want to scare the sh%$ out of you they make it drop.

Shut the damn TV off and do what Dr. Paul does....please this site has turned into another FEAR site along with the rest.

The first post I see is "end of the world as we know it..."

That is what they want you to believe.

It is a script and they are following it because it has worked up until now.

STOP HELPING THEM.

Pretty spooky on how accurate the article is. It almost seems like it was written today.

Manipulation of Gold and Commodity Prices to Prevent Inflation and Higher Interest Rates

"I began this paper with a broad definition of usury to explicitly point out, in an historical context; it has always been inextricably linked to ECONOMIC ABUSE .

Today is no different. Interest Rates and Gold Joined at the Hip."

www.marketoracle.co.uk/Ar...

"It's important to remember that from an historical standpoint, money creation [absent productivity increases] IS inflationary. Inflation historically drives interest rates higher. The question then becomes, what happened to break-down the gold price, yet, send interest rates higher around the 1995 time period [above]?

Economic Laws state that this cannot have happened without good reason.

Refresher As to What Happened In 1995?

We need to wind our clocks and calendars all the way back to 1995, in the twilight of the first Clinton Administration. Sir Robert of Rubin was then Treasury Secretary and the U.S. government was facing default on its financial obligations due to a bitter, partisan debate causing delay on raising the debt ceiling. In the words of Robert Rubin himself in his book, In An Uncertain World, on page 170 he states,

“Without an increase, the federal government would hit the debt ceiling before the end of 1995, possibly as early as October. Default and the President being forced to sign an unacceptable budget were both untenable. We needed to find a way out, rather than simply hoping that at the last minute the opposition would blink and increase the debt limit.”

The ultimate response to this dilemma is chronicled by Rubin, on page 172, where he reveals,

“It was Ed Knight, our savvy chief Treasury counsel, who suggested borrowing from the federal trust funds on an unprecedented scale to postpone default.”

You see folks; as Mr. Rubin was well aware, the federal trust funds DO NOT AND NEVER DID CONTAIN ANY MONEY . These accounts exist in the minds of accountants and lawyers [ledgerdom] only. So here's what was going on:

Beginning Nov. 12, 1995, the Treasury started issuing government bonds, IOU's, and putting them in the Social Security Trust Fund “cookie jar” – with the Fed then PRINTING the corresponding amount of money they needed and called this a ‘legitimate loan'. By accounting for their finances in this manner, the government got to understate their annual budget deficits by the same amount that they were burdening the cookie jar with IOU's – all the while dramatically increasing the unfunded [off balance sheet] liabilities of the government by the same amount. Where I come from, this is neither savvy nor a loan. It is better described as treasonous, fraudulent and larcenous.

At the same time, the methodology for measuring inflation was undergoing rigorous fraudulent changes – which made a mockery of ‘then' Fed Chairman, Alan Greenspan's claims of a productivity miracle and, through the yeoman's work of John Williams [www.Shadowstats.com] was exposed for what they really were: deceitful obfuscations to mask profligate monetary policy being pursued by government. This deception was reinforced by the jaw-boning-ruse we know as the Clinton/Rubin/Summers “strong dollar policy”.

Market rates of interest are historically set at the real rate of inflation plus 250 basis points. The real rate is determined by backing out “inflation” from nominal rates of interest. By understating inflation, interest rates look higher [or more positive] than they otherwise would be.
The budding fraud depicted in the graph above shows that interest rates were behaving as they should but the gold price reacted counter-intuitively? "

"It was this GROSS mis-pricing of Capital and associated market rigging practices that facilitated ALL THE ASSET BUBBLES - from the contorted Dot Com Boom to the Real Estate debacles that followed.

To mask and obfuscate their ever heightening profligacy [if you consider 850 billion dollar bail-outs for Wall Street profligate], officialdom has increasingly relied on the handiwork of their agents in the derivatives markets of strategic commodities to suppress or cap prices – trying to turn back accelerating runs-on-banks. In this surreal set of circumstances, while fiat currency continues to self destruct before our very eyes, the saying that, “price action makes market commentary” leaves the mainstream financial press and unwitting market commentators babbling about rampant deflation even as these “bank-runs” and counter-intuitive physical shortages intensify.

Not by coincidence, if one reads an Introductory Economics Text Book, one would read that artificially low, negative real interest rates deter savings and encourage consumption and frivolous speculation while creating shortages of basic goods.

Does any of this sound familiar? "