Wednesday, 11 November 2009

Money Toilet Paper

$100 Dollar Bill Toilet Paper

If you want to show your contempt for currency and feel that the dollar is devalued, you can use it to wipe your bottom on and express your true feelings about the state of the financial system!

Also available in euros.

Toilet Paper Money

Fiat Currency: Using the Past to See into the Future

The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well.

A short article explaining what happens when banks create money out of thin air.

Wednesday, 14 October 2009

Fiat money alchemy

Gold Coin Vending Machine Offers Profit in Case of a Bank Run

The Stuttgart-based company just unveiled its first prototype at the Frankfurt airport, which offers a 1g gold wafer for €30, a 10g bar for €245, or gold coins. The machines are wired to monitor current gold prices and adjust their rates accordingly.

Thomas Geissler, who owns TG-Gold-Super-Markt, told The Telegraph, "German investors have always preferred to hold a lot of personal wealth in gold, for historical reasons. They have twice lost everything. Gold is a good thing to have in your pocket in uncertain times.

Doesn't it seem kind of twisted to make the spectre of a financial crash into a glittering vending machine offering salvation in the event of a bank run?

Can you imagine the scene if banks started putting these things outside their front doors?

Tuesday, 13 October 2009

Zimbabwe Times

Improbable research: the hundred trillion dollar book

Gideon Gono, author of the new book Zimbabwe's Casino Economy – Extraordinary Measures for Extraordinary Challenges, displays a rare, perhaps unique, kind of scholarly reserve. Since December 2003, Gono has been the governor of Zimbabwe's Reserve Bank.

Two weeks ago, Gono was awarded the 2009 Ig Nobel prize in mathematics. The Ig Nobel citation lauds him for giving people a simple, everyday way to cope with a wide range of numbers – from very small to very big – by having his bank print banknotes with denominations ranging from one cent to 100 trillion dollars.

During 2007 and 2008, Zimbabwe's inflation rate rose past Olympian heights: topping 231m%, by Gono's reckoning; and reaching 89,700,000,000tr%, according to a study done by Dr Steve H Hanke of Johns Hopkins University and the Cato Institute.

The book explains that every larger, richer country will face the same problems...

distortion economy

State should have let banks fail, says Nobel-winning economist

"I find it very ironic that people who have always been in favour of market economics all of a sudden suspended the rules of capitalism. It really undermines the functioning of the economy. It's a distortion to the economy."
But his comments came as a security analyst in London
said troops would have had to be deployed on the streets if the government in Britain had let large banks there fail.

More light reading - 2

Chris Dodd: Confidence Man

What does it mean to “have confidence” in a private, voluntary, free market transaction?

If you deposit money in an ATM, how can you be confident that the cash you put in will be available to you later?

If you pay an insurance company for future protection, how can you be confident it won’t go out of business?

If you invest in the stock market, how can you be confident you won’t lose money?

No running please! (update)

Dutch central bank takes over DSB - oct 12

“The bank called for the emergency measure [to take control] due to a large outflow of liquidity that endangered the continued existence of DSB over the short term,” the central bank said in a statement.
Nout Wellink, president of the central bank, said DSB was now under administration in a process likely to lead to liquidation.

DSB boss took millions from 'his' bank - oct 13

On Monday, the bank was put under central bank control and administrators were appointed. The intervention followed a run on savings. In total, over €600m was removed from the bank over the past few days.

All savings at the bank have now been frozen and bank customers can use their bank cards to withdraw a maximum €750 - or €250 a day - before Wednesday afternoon.

Savers with up to €100,000 in the bank will be able to get their money back under the country's deposit guarantee scheme. But some 4,000 people with savings in excess of this amount are likely to lose the rest.

And some 4,000 people with subordinated deposits, which earned interest of around 6.5%, are not covered by the guarantee scheme at all.

Too late... the runnings all done... the fat cat got the cash... and the small guys are left waiting.

Friday, 9 October 2009

No running please!

DSB Bank website down, hackers or a run? - oct 1

Clients of independent bank DSB were unable to transfer their money electronically on Thursday, leading the company to blame a concerted attack by hackers.
But the Telegraaf claims the site crashed because too many customers were trying to shift their money following a tv programme.

DSB Bank website still down (new) - oct 2

Clients of DSB Bank continued to have difficulty in accessing their accounts online on Friday report various media.
The bank is still officially blaming hackers for the problems but a bank employee told ANP press service on Friday morning that the website had crashed because too many clients were trying to move their money, reports the NRC.

Central bank wants probe into DSB run call - oct 5

The Dutch central bank is in favour of an investigation to establish whether Pieter Lakeman, head of a lobby group representing disgruntled customers of DSB Bank, could be held legally responsible for calling on savers to withdraw their money from the bank in order to force it into bankruptcy.
Last week customers removed around €60m from the bank following a call by Lakeman to force the bank into bankruptcy.

Sounds like the dutch are getting a bit jittery..... come on now.... you know your moneys safe.

Friday, 25 September 2009


G20 leaders map out new economic order at Pittsburgh summit

G20 leaders, installing themselves as permanent stewards of the world economy for the first time, agreed today on a tighter regime on bankers' bonuses and mapped out a new economic order ... while elsewhere in Pittsburgh...

Sonic Warfare Erupts in Pittsburgh, Honduras

Police in Pittsburgh are using sound blasters and other non-lethal weaponry to ward off protesters at the G-20 summit.

Ask the environmental health to come on the next demo ... and tell the government to KEEP THE NOISE DOWN!

Monday, 14 September 2009

Anniversary of a near-death

One year from the day the financial system stared into the abyss, how the world has changed

IN THE days following that fateful collapse of Lehman Brothers almost exactly a year ago, Mohamed El-Erian, CEO of Pacific Investment Management Co, the world's largest bond-fund manager, feared the worst. 'I remember at the end of the week calling up my wife and saying, 'Jamie, go to the ATM, go to the cash machine, and take cash out',' he told Bloomberg. 'She said, 'Why?' I said, 'I don't know whether the banks are going to open tomorrow'.'

On the other side, Piyush Gupta, Citi's CEO for Southeast Asia, remembers doing everything to prevent a run on the bank. He told BT: 'We were really concerned because we saw a lot of people coming in, wondering if they can cash out. Now, the first rule in banking is never to let a bank run happen. Once a bank run happens, you're just dead.'

Friday, 4 September 2009

The Encyclopedia

The Encyclopedia of public choice, Volume 2

Fiat money has no inherent value. Its exchange value depends on a vast system of iterated beliefs: today a person is willing to accept dollars for a cow ...

tomorrow the cow is his only valuable asset - the dollars are worthless pieces of paper.

Can a Central Bank Go Broke?

Can a Central Bank Go Broke?

Centralized monetary authorities enjoy a privileged position in the current monetary system. People tend to view the economists and politicians at these institutions as demigods, individuals who if given enough resources will ensure that the economy continues an ever-advancing and smooth trajectory. However, unlike the Greek demigods of yore, today's central bankers are mere mortals who must work within the confines and constraints of the institution that they head.
While they present an aura of invincibility, the truth is that the effectiveness of their policies faces severe limits.

Central banks enjoy a revered position in discussions on monetary matters. At their disposal are a seemingly endless array of tools and weapons ready to correct any market "imbalance" that threatens economic stability. However, these institutions are only as useful as the assets they represent.

Sunday, 30 August 2009

Wednesday, 19 August 2009

QE - more, more more!

UK debt rises to £799 billion or £13,000 per person

If you were hoping that Britain’s financial situation was getting better, you’re about to be sorely disappointed. Official figures have shown that UK debt has now reached a record £798.8 billion – equivalent to 56.6% of gross domestic product (GDP).

David Kern, Chief Economist at the British Chambers of Commerce (BCC) said“Although slightly smaller than feared, these figures confirm the grim state of our public finances"

“We believe that the risks of a relapse in economic activity are still serious,” he said. “With bank lending remaining weak and unemployment continuing to rise, there is still an urgent need to reinforce the stimulus. We urge the MPC to increase the QE programme at its next meeting"

He got his wish - Merv even wanted more!



Odious (or Hostile-to-the-borrower) Debt is a legal theory which holds that “debt incurred by a regime for purposes that do not serve the interest of the nation … should not be enforceable as the debt was not incurred by the nation or (by or for) its people, but by the interests of the regime, whether elected or not.”

Reject odious debt!


Iceland´s Refusal To Pay, A Quantum Leap Away From Debt-Slavery

Here in Iceland people say, that if the country´s government agrees to give in to British and Dutch blackmail to pay the debts of the private internet-subsidiary Ice-Save of the private bank Landsbanki, we all will become Ice-Slaves.
So public opinion is forcing the parliament to refuse unconditional debt-payments. According to a new agreement payments are only to be made conditional as a percentage of economic growth.

However the Icelandic stand has it´s risks. In the past countries which opposed the plans of the corporate and financial elites have experienced assassinations of their political leaders, false-flag terrorist attacks and all kinds of political destabilization tactics.

Saturday, 7 March 2009

Fly Posting

At the London Summit , the G20 ministers are trying to get away with the biggest April Fools trick of all time. Their tax-dodging, bonus-guzzling, pension-pinching, unregulated free market world's in meltdown, and those fools think we're going to bail them out. They've gotta be joking!

Its a Numbers Game

'Run on UK' sees foreign investors pull $1 trillion out of the City

Some $597.5bn was lost to the banks in the last quarter of last year alone, after a modest positive inflow in the summer, but a massive $682.5bn haemorrhaged in the second quarter of 2008 – a record. About 15 per cent of the monies held by foreigners in the UK were withdrawn over the period, leaving about $6 trillion. This is by far the largest withdrawal of foreign funds from the UK in recent decades – about 10 times what might flow out during a "normal" quarter.

Colin Ellis, an economist at Daiwa Securities, commented: "The outflow of overseas banks' UK holdings is not surprising – indeed foreign investors in general will still be smarting from the sharp fall in the exchange rate last year, as many UK liabilities are priced in sterling terms. That raises the question of what could possibly tempt overseas investors to return to the UK.

Answers on a postcard to: .....

Wednesday, 4 March 2009

Monopoly money

More trouble in store for sterling

Official preparations to flood the economy with cash may prompt sterling to retest 23-year lows against the dollar and analysts say all graphs point down for the pound if it breaks lower.

The central bank voted unanimously in February to ask finance minister Alistair Darling for permission to begin quantitative easing, which it would do either by buying government bonds or corporate assets.

Darling was quoted on Tuesday as saying the BoE could start buying assets this week with newly created money.

Do you believe in monetary 'creationism'?

Thursday, 26 February 2009

£2.3bn bank run

Savers in the UK have withdrawn £2.3bn in January this year:

Savers' £2.3bn bank raid after rates slide

Banks were put on red alert today after customers withdrew more than £2bn from savings accounts in just one month.

Industry figures showed deposits at High Street banks fell by £2.3bn in January, the first significant drop since 1999 and the largest since British Bankers' Association (BBA) records began in 1997.

BBA statistics director David Dooks advised against reading too much into one month's figures, particularly as deposits rose sharply in November and December. However, he warned that if withdrawals continued, banks could face a fresh funding crisis and reduce lending even further.

Ben Yearsley, an investment manager at Hargreaves Lansdown, said savers were moving funds from cash Isas and other savings accounts with banks to the stock market as well as to corporate bonds and gold.

He added: 'They are looking at the returns they are getting and thinking they are diabolical. There was a big shift in January, and February is running on a par with January. There is also nervousness about the banking system, so people are withdrawing cash.'

Sounds like a bank run to me!

Monday, 23 February 2009

Emerald Alert - detailed analysis

Following a comment on yesterdays post i thought i would look a bit deeper into irelands current financial situation:

Ireland uses NPRF to recapitalise banks

IRELAND – The Irish minister for finance has confirmed the recapitalisation of Allied Irish Bank and Bank of Ireland will be funded by the National Pension Reserve Fund.

In a statement, the government said €4bn (US$5.1bn) would come from the NPRF’s current resources while €3bn would be provided by means of a frontloading of the Exchequer contributions for 2009 and 2010.

Irish banking sector mired in borrowing costs

In some respects Ireland is uniquely badly placed to cope with the current financial crisis. It is entering recession with a hole in its public finances as property- related taxes dry up in line with the construction and housing slump.

There is no cash for a fiscal stimulus - ministers are hinting at the need for tax increases and public spending cuts to correct the ballooning budget deficit.

So on top of trying to finance a record fiscal deficit this year, set to be 9.5 per cent of gross domestic product, the government is also having to find funds to recapitalise its banks, which are facing large scale asset writedowns as property developers are unable to sell houses, and the value of collateral collapses.

Here perhaps there is some relief in sight. Ireland can dip into its National Pension Reserve Fund, a sovereign wealth fund established in 2001 as a far-sighted initiative to anticipate the greying of Ireland's population. It was originally set up to part fund the future pensions of retiring public sector workers. The fund was only meant to be drawn down from 2025.

As of December 29 assets under management stood at €16.4bn. Included in this are cash balances of €1.7bn and €3.5bn bonds, which officials say can be turned into cash.

So everythings all right in ireland.... theres plenty of money to fund the financial crisis... the government has just agreed to recapitalise two of the countrys biggest banks to the tune of 4bn from the National Pension Reserve Fund (NPRF).

BUT its only got 1.7bn in cash.... so its selling 2.3bn of bonds. All taken from a pension fund set up to cover the future pension liabilities of public sector workers which was not supposed to be touched until 2025.

I read somewhere that The Last Official Act of Any Government is to Loot the Nation.

Sunday, 22 February 2009

Emerald Alert

Scandal sees €10bn flood out of country

Up to €10 billion in funds is believed to have left Ireland in the last seven days as details of the Anglo Irish Bank scandal emerged.

Labour's Finance spokesperson Joan Burton said yesterday that the events at Anglo and its impact on Ireland's banking reputation is bleeding the country of cash.

Ireland in the face of default?

Last week ireland's five-year credit default swaps rose to a record 377 basis points.

Will ireland go the same way as iceland?

Thursday, 19 February 2009


If you go to work everyday, 9-5 and then hand over about a quarter of your income to the government every month and you're not angry about the current banking F-up, then youre either one of the financial or political elite that have been ripping off the world since time immemorial, or youre a snivelling, subservient little slave and you deserve all the subjugation you get. The UK government is bailing the banks out to the tune of £500 billion!

Wednesday, 18 February 2009

Run in the Sun

People seeking to withdraw funds line up outside the Bank of Antigua in St John's February 18, 2009.

Hundreds seek their money as Stanford fallout spreads

Hundreds of people rushed on Wednesday to withdraw money from banks in Antigua and Venezuela linked to Texas billionaire Allen Stanford as the fallout from U.S. fraud charges against him rippled from the United States to the Caribbean, Latin America and Europe.

A day after the tycoon and two top executives were charged with an $8 billion fraud by the U.S. Securities and Exchange Commission (SEC), investors and depositors in his banks and companies tried to redeem funds or sought information about their savings.

Police officers stood watch at the Bank of Antigua as at least 600 people stood in line outside.

"I'd like to get my money out," said Andrea Lamar, 28.

Friday, 13 February 2009

electronic bank run - video

"$550 billion dollar electronic bank run" - listen out for the latest revelations on the US economy.

WTF is he talking about?

Monday, 9 February 2009

Bank Users Strike

This looks like an interesting response to the global bank crisis:

The campaign for the bank users strike begins


We won't use the valuable space of this pamphlet to explain the damage banks and their governing accomplices make to us; if you are here now it's because you already know it. ¡Let's go to the point! These mobilizations on 15N are one first step, but we need to go further beyond. We all know that demonstrations are not enough to change the state of things, we need more sharp and forceful actions. Now is the time to move into action! That's why we are preparing a banks users strike.

What will we do?

It will be an indefinite strike which will not end until the worker's debt become canceled just the same as they have canceled Wall Street speculator's loss. It won't finish until the current international financial system is abolished and a new one is created, a new one directed by fair rules, which mean to cover the people needs and not those from speculators.If hundreds of thousands of people all around the world arrange to stop paying our debts, and if we support each other, they will not stop us. If there are a lot more participating in this call by withdrawing the money from the banks, we will stop this system which is enslaving us.Which meaning could have a delinquencies list if everybody was registered in it? Which strength will their seizes represent if they are affecting millions of people? What will they speculate with if we take out all the money from banks? Take part in this indefinite strike! Withdraw all your money from the bank, let's stop them speculating with our savings! Do not pay your mortgage and stay living in your home, do not pay back any personal credits, let this crisis be paid by the richest!

Watch this one grow and grow!

Straight Talking

How about this 'no beating about the bush' comment on the current state of the UK banking system:

Financial Markets Analysis: Stocks Bounce, Where Next

Meanwhile greedy culpable bankers continue to reward themselves for failure with billions of tax payers monies across the globe. In the UK the Labour governments in-action is going to cost it the next election for allowing this to happen, after-all the banking rules and contracts have already been been broken in the aid of £800 billion of liabilities with more to come, the only contracts still being held up are those that allow bankers to be rewarded for destroying the British financial system.

This is totally outrageous and unforgivable.

The banks try to defend the indefensible with statements that they need to pay bonuses to attract the brightest and smartest. So smart are these people that they have destroyed the financial institutions that they worked for, any smarter and we may be looking at an Iceland style Bankrupt Britain, which therefore supports the view of dumbing down on the employees as well as the function of the banks, i.e. to focus on lending out deposited money without resorting to financial trickery to mis-price assets so as to reward bonuses for non existent profits.

Sounds about right to me.... Bankrupt Britain!

Saturday, 24 January 2009

Comment of the Week

I have noticed that the best analysis and perspectives are written by the readers and not the journalists:


The Sterling collapse is not surprising - the idea that a government can buy christmas tree logs from Finland for 300 pounds and magically convert them into 3 billion pounds of paper "currency" by printing the head of the queen on it is laughable.

Sterling is worth nothing because it is backed by nuthin....

Comment by Johan Meulemeester

Everything else is is irrelevant or a distraction...... its not if but when.

Friday, 23 January 2009

Reykjavik on Thames

Don't worry.... everything will be all right.... the damage limitation boys are out in force today:

It's a bitter chill but Britain is not Iceland

The economy is in a bad way and government finances are in an awful state, but let's get a sense of perspective. The City is not Reykjavik on Thames. Britain is not Iceland. Sterling has fallen a long way and may fall further. But Britain is not bankrupt.

British banks did grow too big for the economy, which makes us more vulnerable to the banking meltdown than the Americans. But it is nowhere near as extreme as in the case of Iceland.

Not yet.... the PM has not resigned!

Wednesday, 21 January 2009

UK financial update

Things are starting to get interesting in the uk as the the following three stories show:

Pound falls further against dollar as bank shares suffer again

The pound slipped to $1.3716 in early trading on the currency exchanges, down almost 1.5 cents to a fresh seven-and-a-half-year low.

Barclays's shares plunged by 33% to 48p, their lowest level since 1985. Lloyds Banking Group also continued to suffer, down another 12% to 29.3p, after a senior Labour MP called for it to be nationalised.

The talk in the City yesterday was that the UK's credit rating could be downgraded, or that the IMF might have to step in – a suggestion denied by chancellor Alistair Darling.

Freefall: Dangers of a collapse

What happens if bank share prices keep falling?

The authorities will be concerned that confidence in the banking system has been eroded and that savers will be spooked enough to start withdrawing their deposits.

Time to turn out the lights on sterling?

Jim Rogers, a punchy international investor who once worked alongside George Soros, weighed in with his view: "I would urge you to sell any sterling you might have. It's finished. I hate to say it, but I would not put any money in the UK."

After a few weeks rest over christmas and the new year it looks like uk depositors should have their running shoes at the ready.

Alternative Money

An article attempting to explore some alternatives to the current financial system:

If the state can't save us, we need a licence to print our own money

I also know that most of the money in circulation is issued, through fractional reserve banking, in the form of debt. This means that you can't solve one problem (a lack of money) without causing another (a mountain of debt). There must be a better way than this.

As we confront the failure of the government's first bailout and the astonishing costs of the second, isn't it time we considered the alternatives?

Once again one needs to look in the comments section for real insight - and for a better understanding of the real problem behind the current financial crisis many posters refer to this video - Money as Debt. Watch it!

Monday, 19 January 2009

Bailout II

The UK's relentless drive to become the next Iceland has taken another step:

Darling warns of economic collapse without latest banking bail-out

Alistair Darling today insisted he was right to use hundreds of billions of taxpayers' money in a fresh bail-out of the banking sector, saying the recession would be much worse if he did not act.

But shares in the banking sector plunged despite the new support package. Royal Bank of Scotland lost more than 70% after it said it will make a loss of up to £28bn for 2008 - the biggest loss in UK corporate history.

"It may seem a very wet, miserable January morning, things out there look very grim, but we will get through this," Darling added.

How long will it take before "we will get through this"..... and come back asking for more money?

The readers comments at the end of the article... give a clearer perspective:

You've sussed it.

And why are we up the creak whichever way we turn? Because they have created a fiat and paper money system.

So let's just scrap it! Yes, we can do that. But it still leaves us with the gargantuan, and I mean gargantuan, problem, that those naughty old powers-that-be haven't stupidly carried out an advanced take-over-the-world money system. Oh no. They've gone and incorporated it into the way the entire system of commerce and business works. If we were back in the stone age we wouldn't have lost too much. Two pairs of sandals, a three-legged chair and the boy for the cow and chickens? But in todays world, where 99% of us do not have real skills, cannot make, mend or produce anything of use, most importantly food, and where we rely on external power sources for everything (electricity, petrol, gas), it is going to be a steep learning curve.

....Have you started learning yet?

Friday, 2 January 2009

zero tolerance to martial law

Zero percent interest rates are in the offing on both sides of the pond:

Savers facing accounts with no interest

More than 7 million people have saving accounts which already pay interest of 1 per cent or less. If a cut is passed on in full by banks, these accounts will dive towards negative territory for the first time on record.

Mark Dampier, of asset managers Hargreaves Lansdown, said: "It is a dire times for savers, especially for elderly people who rely on their income. They have already seen a sharp drop in excess of 50 per cent and can anyone tell me of someone in the public or private who would put up with a 50 per cent pay cut?"

A cut in interest rates raises the bizarre possibility that some savers may soon end up having to pay banks to keep money with them.

Savers pay already - bank charges and annual card fees for a start.... how much does it cost to keep your money under the mattress?

While in the US zero interest has global implications:

The Shadow Money Lenders: The Real Significance of The Fed’s Zero-Interest-Rate Policy (ZIRP)

To secure their global agenda, the shadow money-lenders needed a national base to first consolidate their power and to legislate laws that would secure their monopoly to issue money and credit. The target country was England and that is why the first central bank was the Bank of England. Almost all the laws that secured the money-lenders their unbridled economic and political power can be traced back to the legal basis for the establishment of the Bank of England as a central bank and their unfettered right to create “credits”.

The £ was the currency of choice for world conquest and the result was the mighty British Empire, where the sun never sets! It was an empire based on debt. When the £ Ponzi scheme unraveled, Britain outlived its usefulness and the shadow money-lenders relocated to structure another Ponzi scheme.

The next target country was the United States and the vehicle was the Federal Reserve System.

What is important to understand is that the shadow money-lenders are parasitic in nature and they have to feed on a continuous diet of debts. The financing of military adventures ensures a continuous stream of debts and compound interests. Debts beget more debts!

When the debts reach saturation point, the Ponzi scheme will collapse and hence, the need to revive and or re-establish another Ponzi scheme, failing which the shadow money-lenders’ financial empire cannot be sustained.


The Fed’s decision to cut the Fed Fund Rates to 0.25 percent means that the Fed has embarked on a Zero-Interest-Rate Policy (ZIRP) and to proceed with the policy of Quantitative Easing (QE) – to turn on the spigot for “limitless supply of credit”.

In layman’s jargon, to encourage more debts – mortgage debts, credit-card debts, car loans, and more importantly to revive the derivative casino, presently on life support. This was the drug addiction that sustained the global financial system in the last twenty years and more intensely in the last seven years!

The announced policy (ZIRP / QE) is the last bullet in the Fed’s arsenal or as I have stated earlier, using another analogy, the final gamble, the last chip on the betting table. There will be no more ammunition left after this.

This huge gamble will take six months to play out but it will end in failure as surely as the sun will rise in the East tomorrow.

But a more sinister aspect of the zero-interest-rate policy which has not been highlighted by any economist or financial commentator is that the United States under the present Bush regime has declared to the entire world that the United States cannot and will not service anymore interest payments on the nation’s outstanding debts amounting to trillions.

Bush has declared that the United States for all intent and purposes is bankrupt and have no means to service the interest due, what more the principal sum.

Bush, Bernanke and Paulson have therefore collectively agreed to give the “two-finger sign” to the world’s creditors and in no uncertain terms are saying that:

You creditors, you a@#holes, you can jerk off. You know, I know and the whole bloody world knows that the US of A have no income to even service the interest which amounts to a few hundred billion a year.
So let us stop the pretense. We owe trillions and interest on top of that runs to hundreds of billions, which when unpaid is capitalized. And every year we have to borrow from you guys just to pay the interest so as to avoid a call on default. There were so many occasions when we have defaulted, but you guys allowed us to roll over to maintain the fa├žade that the US of A is still floating.
We ain’t floating like a bee, but we are sinking fast! Let’s cut the crap and be real.
So this is the offer. And you jerks better listen good because this will be said once and once only.
You guys should be more than happy with so much interests already accruing on the outstanding. All these years, you guys have been only too happy to see us print the toilet papers in payment of your goods and to service the interests. It was an incredible con and what a free ride we had all these years. You guys were part of the con as well.
If you insist that I continue to pay you in toilet papers, why do you insist that we issue more toilet papers as interest payments? It is just more toilet papers. You guys are swarmed with toilet papers!
The toilet paper is worthless. So what is the point of paying “toilet paper interest” on outstanding toilet papers?
This is it! We are not paying anymore toilet paper interest. We are going to print more toilet papers to pay for whatever we want to purchase. If you want to sell to us, you will get toilet papers but with no interest. Period!

This is the greatest irony. The Fed, the world’s biggest money-lender and its partners-in-crime are telling their creditors to stuff it! When debtors cannot pay the exorbitant interests and the principal, these financial predators demand that the debtors give their pound of flesh in lieu of cash. But when they borrow, they repay in toilet paper money abd get away with it!

And now they even have the audacity to give an ultimatum:

We are the biggest buyers in town. If you don’t want toilet papers from us, that is fine by us. You can get tissue papers from the Europeans, bamboo papers from the Japanese and whatever that is on offer. Who is going to argue whether tissue paper would do a better job than plain toilet paper? Hey, this is a free market. Pick your choice!

This is the ultimate poker game. Bush, Bernanke and Paulson is betting that no one will call their bluff, turn away and stop selling anymore goods to the US of A. Bush is counting that the fear of recession and or social unrest in the creditors’ countries will force the creditors to capitulate.

Unfortunately, this gambit will fail. The reason is simple. The US cannot supply the goods that the American consumers want, even the most basic stuff. The manufacturing industries are all anemic, while others are on life support. Without imports, the United States will have to shut down within six months.

There will be massive riots all over the US, with people killing for food and other basic necessities. Basic raw materials, commodities for manufacturing etc. will be unavailable. There will be no more cars on the freeways! Millions of Americans licensed to carry arms will stalk the streets for whatever scrap they can get their hands on.

You can bet your bottom dollar, the Shadow Money-Lenders and its military partner will impose martial law.

From zero tolerance to martial law.... 2009 is sizing up to be an interesting year!