STOCK MARKET WATCH - Monday, 12 March 2012

[Demeter]

16. Money from Nothing: A Primer on Fake Wealth Creation and its Implications

STOLE THIS FROM OWLET, WHO DOESN'T SEEM TO LIKE US WELL ENOUGH TO POST HERE


http://charleshughsmith.blogspot.com/2012/03/money-from-nothing-primer-on-fake.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+google%2FRzFQ+%28oftwominds%29

"Only God can create… value out of nothing"—Justice Martin V. Mahoney in First National Bank of Montgomery vs. Jerome Daly.

&quot I’m) doing God’s work." – Goldman Sachs CEO, Lloyd Blankfein

Introduction:

What is fraud except creating “value” from nothing and passing it off as something?
Frauds interlink and grow upon each other. Our debt-based money system serves as the fraud foundation. In our debt-based money system, debt must grow in order to create money. Therefore, there is no way to pay off aggregate debt with available money. More money must be lent into the system to make the payments for old debts. This causes overall debt to expand as new money for actual people (vs. banks) always arrives at interest and compounds exponentially. This process is called financialization.

Financialization: The process of making money from nothing in which debt (i.e. poverty, lack) is paradoxically considered an asset (i.e. wealth, gain). In current financialized economies “wealth expansion” comes from the parasitic taxation of productivity in the form of interest on fiat lending. This interest over time consumes a greater and greater share of resources, assets, labor, and livelihood until nothing is left.

Only in a debt-based money system could debt be curiously cast as an asset. We’ve made “extend and pretend” a quaint phrase for a burgeoning market for financial lying and profiteering aimed toward preventing the collapse of a debt- (or lack-) based system that was already doomed by its initial design to collapse. This primer will detail the major components and basic evolution of fake wealth creation, accelerating debt expansion, hollowing out of the economy, and inevitable financial implosion.

SEE LINK FOR DEVELOPMENT OF THE FOLLOWING:

Stage one—Fiat money origination, multiplication, and distribution

The U.S. Federal Reserve System (“The Fed”):

Fractional reserve:

Stage two—Delusional, unregulated value assignment, manipulation, and expansion

Leverage:

Over the counter (OTC) derivatives:

Rehypothecation:

Stage three—Usurping democracies and cannibalizing functioning capitalism

A cartel of international wealth counterfeiters have boldly made claims on Greece’s national wealth through super-national entities like the European Central Bank...

Disaster capitalism:

Stage four—Implosion of the body politic or necessary transformation and redirection?