The International Monetary Fund

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The International Monetary Fund Lays The Groundwork For Global Wealth Confiscation

Global Research, October 17, 2013

by Bill Frezza

The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets.

Yes, you read that right. But don’t take it from me. The report itself says:

“The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). … The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away. … The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth. (page 49)”

Note three takeaways.

First, IMF economists know there are not enough rich people to fund today’s governments even if 100 percent of the assets of the 1 percent were expropriated. That means that all households with positive net wealth—everyone with retirement savings or home equity—would have their assets plundered under the IMF’s formulation.

Second, such a repudiation of private property will not pay off Western governments’ debts or fund budgets going forward. It will merely “restore debt sustainability,” allowing free-spending sovereigns to keep tapping the bond markets until the next crisis comes along—for which stronger measures will be required, of course.

Third, should politicians fail to muster the courage to engage in this kind of wholesale robbery, the only alternative scenario the IMF posits is public debt repudiation and hyperinflation. Structural reform proposals for the Ponzi-scheme entitlement programs that are bankrupting us are nowhere to be seen.

If ever there were a roadmap for prompting massive capital flight and emigration of productive citizens toward capitalism’s nascent frontiers in Asia, this is it.

“The IMF justifies its tax increases by highlighting trends in income inequality along with a claimed decline in the progressivity of most income tax regimes. Using “perceived equity” (otherwise known as “envy”) as the key metric motivating tax policy, the report intentionally conflates tax rates with tax revenue, lamenting a decline in the top marginal income tax rates paid by the highest earners. Never mind that these high earners have been forking over more money, a higher percentage of their gross income, and a larger share of aggregate national tax revenue in recent years. It also ignores the Laffer Curve effects that are clearly visible in the data. As for incentive, the report pays no heed to the idea that wealth and income can only be taxed if someone is motivated to create it.”

Read complete article at

The International Monetary Fund Lays The Groundwork For Global Wealth Confiscation - Forbes

 

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Triggering Economic Disaster: the Insidious Role of the International Monetary Fund (IMF)

We've all heard the old adage about adding insult to injury but the IMF has turned it into an art form.

The new IMF Director, Christine Lagarde, came to Washington this week begging for yet more billions so the fund can continue propping up insolvent European banks and wrapping developing countries around the globe in debt chains.

Lagarde is on a political junket with the aim of raising an additional $500 billion for the IMF, money that will be used for future Eurozone bailouts and other financial crises, or so they say. The speech was delivered 64 years to the day after Truman's signing of the Marshall Plan (coincidence, surely) as she asked the American taxpayers to search their hearts, take one for the team and dig deep to help foot the bill for Europe.

Except this is not 1948 and Europe is not recovering from the Nazis.

It's 2012 and the Eurozone is falling apart at the seams because it was a failed concept from the beginning. The cracks in the Euro have been showing for years, despite the best efforts of the Goldman Sachs gang to paper over the debt swap deal that helped Greece lie its way into the Eurozone and helped Goldman earn 12 percent of its entire trading and investment revenue in 2001 on a single day.

Lagarde didn't mention this in her speech, but she did assure the crowd that at the IMF,
“your money is used prudently.”

The only thing that is remarkable about this is that the public is expected to believe it.

No one who has any understanding of the IMF's past or how it operates would expect that these funds to be used in any other way than they always have been:

as leverage over the governments that sign their peoples on to debt servitude.

Between the start of IMF involvement in Peru in 1978 and the second round of loans in the 1990s, the appropriately acronymic SAP (structural adjustment program) managed to quadruple illegal coca production by devastating local farmers and leaving them to choose between growing coca or starving. They chose coca.

There are countless other disasters. And countless swindles.

Billions of dollars in IMF loans to Russia in the 1990s were diverted straight into the Swiss bank accounts of oligarchs and gangsters. One $4.8 billion dollar loan program administered by the fund in 1998 went in one door of the Russian central bank and straight out the other. The people never saw a ruble of it and were left with unemployment rates, stock market losses and currency devaluation that rivaled the Great Depression.

The fallout from these operations is invariably the same.

The people figure out that they've been footed with the bill for someone else's party and the riots begin. We've been witnessing this in Europe since the Euro crisis began and it's flaring up again. This week a 77 year old Greek pensioner shot himself in the head outside parliament because, he said, he didn't want to have to start picking through trash in order to feed himself.

The IMF issued a statement Thursday that it was “deeply saddened” by the incident, but the people of Athens have taken to the streets yet again, with thousands flocking to the site of his death and many scuffling with police.

These types of protests aren't merely predictable, they're part of the plan. The IMF and World Bank documents that leaked out in 2001 detailed the four step plan for looting a country, including the “IMF riot” stage.

People take to the streets to protest the austerity measures that are tied to the IMF loans, causing foreign capital to flee, governments to go bankrupt, and foreign speculators to pick up the pieces at fire sale prices. The riots happened in Indonesia in 1998. And Bolivia in 2000. And Ecuador and Argentina in 2001.

What's happening in Europe is not an exact analogue, and it's aimed at centralizing power in the EU in Brussels and the ECB in Frankfurt, but that the IMF has seen the crisis as an excuse to get its foot in Europe's door as a lender is particularly telling.

This is how the game is played and that's why the politicians for the most part are happy to go along with it. After they serve their term in the cockpit, they jump out with a golden parachute and leave the people to crash in the flaming debt bubble the politicians have created.

This is why Lagarde is likely to get her $500 billion, or something approximating it, including an extra $63 billion that the US is slated to start paying under a new quota agreement.

And the band plays on...

~

By James Corbett
International Forecaster 8 April 2012

 

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"....Perhaps most outrageous is the $108 billion loan guarantee to the International Monetary Fund. These new loan guarantees will allow that destructive organization to continue spending taxpayer money to prop up corrupt leaders and promote harmful economic policies overseas.

Not only does sending American taxpayer money to the IMF hurt citizens here, evidence shows that it even hurts those it pretends to help. Along with IMF loans comes IMF required policy changes, called Structural Adjustment Programs, which amount to forced Keynesianism. This is the very fantasy-infused economic model that has brought our own country to its knees, and IMF loans act as the Trojan Horse to inflict it on others. Perhaps most troubling is the fact that leaders in recipient nations tend to become more concerned with the wishes of international elites than the wishes and needs of their own people. Argentina and Kenya are just two examples of countries that followed IMF mandates right off a cliff. The IMF frequently recommends currency devaluation to poorer nations, which has wiped out the already impoverished over and over. There is also a long list of brutal dictators the IMF happily supported and propped up with loans that left their oppressed populace in staggering amounts of debt with no economic progress to show for it.

We are buying nothing but evil and global oppression by sending your taxdollars to the IMF. Not to mention there is no Constitutional authority to do so. Our continued presence in Iraq and Afghanistan does not make us safer at home, but in fact undermines our national security. I vehemently opposed this Supplemental Appropriations Bill and was dismayed to see it pass so easily."

Ron Paul
TUESDAY, MARCH 1, 2011
Ron Paul



Along with IMF loans comes IMF required policy changes, called Structural Adjustment Programs

 

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The IMF and Usury: Crime Without Punishment (7/11/05)

Written by Elizabeth Levy Sad / Translation by David Epstein
Friday, 14 October 2005 08:39

"Blaming the International Monetary Fund (IMF) for the difficulties faced by a country in times of crisis is like blaming the doctor for the patient's disease". This statement and others like "the IMF does not represent the interests of the G7" are part of an outrageous manual that teaches the organization's officers how to reply to the uncomfortable questions asked by the press. Perhaps, the text became effective after a reporter asked Anne Krueger - First Deputy Managing Director of the IMF - if her organization was responsible for the increasing poverty in Argentina, while he attempted to place before her eyes the photograph of a malnourished child, Krueger escaped like someone trying to avoid leprosy.

After the Second World War, the International Monetary Fund was created to promote international monetary cooperation, to foster economic growth and high levels of employment, and to provide temporary financial assistance for countries to help ease the balance of payments.

But, as Nobel Prize-winner economist Joseph Stiglitzs denounced in several journalistic interviews, the IMF acts as a usurer that disables the growth of emerging countries, and insists on using recipes that have failed.

According the World Bank's data, the Committee for the Annulment of Third World Countries' Debt and the Economic Conference for Latin America, the "Third World" as a whole, together with the countries of Eastern Europe, paid more than US$ 4 billion in the last 20 years. This means credit entities received resources for an amount six times higher than the original sum.

"These countries' coffers sink through a significant black whole in their budgets, which every year allocate an important part of their funds to pay interest on their respective debts" says Eric Calcagno, an economist and consultant to the intergovernmental Latin American Economic System.

"Latin America has already paid 1.4 billion dollars since 1982, which represents almost five times its original debt, but it still owes three times more", he adds.

It is enough to X-ray the actions of the International Monetary Fund to understand the impact of the payment of poor countries' foreign debt:

-In 1982, Mexico owed US$ 57 billion to credit entities. Two decades later it owes US$ 152 billion, an amount that triples what it has already paid. According to official data, this country has 55 million poor people, almost half of its total population.

-Colombia's Finance Minister stated that the country's national budget for the next year is 35, 361 million dollars, one third of which will be used to pay the principal interest on the debt. Meanwhile, 62 percent of the Colombian children are poor or indigent.

-Brazil, one of the most unequal countries on Earth in terms of income distribution, owes 223 billion dollars.

-Over half of African countries spend more of their budget to pay their foreign debt than their health care. As a direct consequence, Sub-Saharan Africa will have more than 18 million orphans in 2010 because of AIDS.

- Military dictatorships in Latin American countries received enormous loans from the IMF as well. Do they promote democracy?

Argentina: A Leading Case.......

The IMF and Usury: Crime Without Punishment (7/11/05)

 

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".....The history of Britain’s relationship with the IMF is an unusual one, which helps to explain when the fund’s advice must be heeded and when it can be ignored. Things started well. In the aftermath of the second world war, new institutions were set up to oversee the global economy, trade and aid. The IMF’s role was to monitor the system of fixed exchange rates, spotting policies that might lead to instability and bailing out countries that got into trouble with short-term loans. During the talks that set the bodies up, Britain’s position was strong. Its economy was battered by war but by 1944, when plans for the IMF were finalised, it looked likely to win. And it had Keynes, then the world’s most important economist, at the table.

Three decades later the IMF was calling the shots. The global fixed exchange rate system had collapsed and sterling was unstable. An oil shock in 1973 quickly fed through to rampant inflation, which exceeded 25% in 1975. To offset this, official interest rates averaged over 10% for five years, dulling growth. This mix of stagnation and inflation—“stagflation”—eroded investors’ confidence and the pound fell sharply. In 1976 Britain became the IMF’s first big debtor, borrowing $3.9 billion. In exchange, the fund demanded deep cuts.

Today things are different. Although Britain is once again suffering from a form of stagflation, its problems are long-run rather than acute. It does not need the IMF’s short-term emergency funding. Ireland, Portugal and Greece have been granted IMF loans running to $100 billion, and must, in exchange, heed its advice.

Indeed, the size of those loans strengthens Mr Osborne’s hand. Since the IMF is set up like a credit union rather than a bank, its loans cannot exceed the deposits creditor nations make. When the euro crisis intensified in 2010, the list of potential borrowers suddenly lengthened and the IMF needed extra cash. Britain contributed its fair share and pushed hard for other countries to stump up, too....."

The IMF in Britain: Toothless truth tellers | The Economist

"the IMF is set up like a credit union rather than a bank"
"its loans cannot exceed the deposits creditor nations make"

??

oh right.....

 

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Top Ten Reasons to Oppose the IMF

...

The IMF serves wealthy countries and Wall Street

:Unlike a democratic system in which each member country would have an equal vote, rich countries dominate decision-making in the IMF because voting power is determined by the amount of money that each country pays into the IMF's quota system.

It's a system of one dollar, one vote. The U.S. is the largest shareholder with a quota of 18 percent. Germany, Japan, France, Great Britain, and the US combined control about 38 percent. The disproportionate amount of power held by wealthy countries means that the interests of bankers, investors and corporations from industrialized countries are put above the needs of the world's poor majority.

...

The IMF is imposing a fundamentally flawed development model

Unlike the path historically followed by the industrialized countries, the IMF forces countries from the Global South to prioritize export production over the development of diversified domestic economies. Nearly 80 percent of all malnourished children in the developing world live in countries where farmers have been forced to shift from food production for local consumption to the production of export crops destined for wealthy countries. The IMF also requires countries to eliminate assistance to domestic industries while providing benefits for multinational corporations -- such as forcibly lowering labor costs. Small businesses and farmers can't compete. Sweatshop workers in free trade zones set up by the IMF and World Bank earn starvation wages, live in deplorable conditions, and are unable to provide for their families. The cycle of poverty is perpetuated, not eliminated, as governments' debt to the IMF grows.

...

IMF policies promote corporate welfare

To increase exports, countries are encouraged to give tax breaks and subsidies to export industries. Public assets such as forestland and government utilities (phone, water and electricity companies) are sold off to foreign investors at rock bottom prices. In Guyana, an Asian owned timber company called Barama received a logging concession that was 1.5 times the total amount of land all the indigenous communities were granted. Barama also received a five-year tax holiday. The IMF forced Haiti to open its market to imported, highly subsidized US rice at the same time it prohibited Haiti from subsidizing its own farmers. A US corporation called Early Rice now sells nearly 50 percent of the rice consumed in Haiti.

...

The IMF bails out rich bankers, creating a moral hazard and greater instability in the global economy

The IMF routinely pushes countries to deregulate financial systems.....

Top Ten Reasons to Oppose the IMF | Global Exchange

 

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IMF bailouts deepen, rather then solve, economic crisis

During financial crises -- such as with Mexico in 1995 and South Korea, Indonesia, Thailand, Brazil, and Russia in 1997 -- the IMF stepped in as the lender of last resort. Yet the IMF bailouts in the Asian financial crisis did not stop the financial panic -- rather, the crisis deepened and spread to more countries. The policies imposed as conditions of these loans were bad medicine, causing layoffs in the short run and undermining development in the long run. In South Korea, the IMF sparked a recession by raising interest rates, which led to more bankruptcies and unemployment. Under the IMF imposed economic reforms after the peso bailout in 1995, the number of Mexicans living in extreme poverty increased more than 50 percent and the national average minimum wage fell 20 percent.

Top Ten Reasons to Oppose the IMF | Global Exchange

...

excerpts:

The head of the International Monetary Fund, Christine Lagarde, has warned that a US default could tip the world into recession.

In a US TV interview, she said a default would result in "massive disruption the world over".

The US Treasury will start to run short of funds on Thursday if no agreement is reached for it to raise its debt limit.

The president of the World Bank, Jim Yong Kim, has also expressed his concern over the situation.

"Inaction could result in interest rates rising, confidence falling and growth slowing," said Mr Kim, speaking at the World Bank's annual meeting in Washington.

Republicans and Democrats failed to come to an agreement on Saturday, but Senator Dick Durbin, a Democrat, said the aim was to reach a deal on extending the debt limit before markets reopen on Monday.

BBC News - IMF chief warns a US default could spark recession

OKAY?


extend the DEBT LIMIT.
MORE DEBT.

is that hard? - MORE DEBT.
this is the advice of the IMF.

the threat (FROM THE VERY PEOPLE WHO OWN THE WHOLE SYSTEM) of not incurring MORE DEBT is:

THEY WILL raise interest rates (more bankruptcies and unemployment)
THEY WILL pull the switch on their OWN S&P rating scam ops (confidence falling and growth slowing)
THEY WILL demand lower wages (austerity, starvation)

in either case: THEY ARE demanding (extortion) deregulation of the monetary; global and domestic trade policies of Sovereign Nations.

 

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Grand Larceny

A category of larceny—the offense of illegally taking the property of another—in which the value of the property taken is greater than that set for petit larceny.

At Common Law, the punishment for grand larceny was death. Today, grand larceny is a statutory crime punished by a fine, imprisonment, or both.

grand larceny legal definition of grand larceny. grand larceny synonyms by the Free Online Law Dictionary.

 

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The UN (the IMF and the World Bank are institutions of the United Nations) has unlawfully forced Cyprus to shut down its second largest bank, inflicting heavy losses on uninsured depositors, including wealthy Russians.

The UN has committed grand larceny against the people of Cyprus. The UN has illegally seized (larceny is a crime involving the taking and carrying away of the personal goods of another from his or her possession with intent to convert them to the taker’s own use) the money of every depositor in that bank.

It is grand larceny because they stole the depositor’s money with the intent to convert the money to their own use. All of the depositors’ money have effectively been stolen because you can’t have deposit insurance without a bailout of the banking system by the UN’s IMF. But to have this bailout, depositors need to have a cut (imposed by the UN’s IMF). It’s sort of a paradox: “from now on deposit insurance is not insured anymore”.

http://presscore.ca/

 

[Married_Richenbrachen]

Grand Larceny

A category of larceny—the offense of illegally taking the property of another—in which the value of the property taken is greater than that set for petit larceny.

At Common Law, the punishment for grand larceny was death. Today, grand larceny is a statutory crime punished by a fine, imprisonment, or both.

grand larceny legal definition of grand larceny. grand larceny synonyms by the Free Online Law Dictionary.

I've read a little about Common Law, but I'm not sure exactly how it is/was defined (e.g. how was it determined that the penalty for grand larceny was death?). I've read some sources that say Common Law still exists, although police generally enforce statutes rather than the Common Law. This seems to vary from country to country also.

 

[letti]

A recommendation for more IMF info,Confessions of An economic Hitman.

 

[letti]

A excellent book,for those wanting to know more.

 

[Married_Richenbrachen]

A recommendation for more IMF info,Confessions of An economic Hitman.

I've been meaning to read this, but haven't got around to it yet. I think there is a free version online, but if not, I'll have to order it... one day!

 

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Grand Theft Cyprus: “Deadly Economic Medicine”

By Stephen Lendman
Global Research, April 13, 2013

Hit ‘em again harder is policy. Cyprus is Exhibit A. It’s pound of flesh demanded got greater. “Could it possibly get any worse,” headlined Cyprus Mail?”

Weeks after agreeing to Eurocrat terms, six billion more euros are demanded. A leaked European Commission “Assessment of the public debt sustainability of Cyprus” report revealed it.

At issue are “needs for the recapitalization of the banking sector, the redemption of maturing medium and longterm debt, including loans and fiscal needs,” it said.

Another 600 million euros will be raised through higher corporate taxes. Gold reserves sales may raise another 400 million. Eurocrats demand they be sold. Their public debt sustainability report mandates it. Clause 29 states:

”Sale of excess gold reserves: The Cypriot authorities have committed to sell the excess amount of gold reserves owned by the Republic. This is estimated to generate one-off revenues to the state of 400 (million euros) via an extraordinary payout of central bank profits.”

Privatizations and privately held debt rollovers will raise more cash. How much remains to be seen.

Cypriots are learning the hard way. Eurozone straightjacket rules entrap them. One size fits all doesn’t work. Losing control of monetary and fiscal policy assures disaster. It’s just a matter of time. It’s hitting Cypriots full-force.....

....Cypriot officials have to raise more cash than expected. Eurocrats agreed to a nine billion euro bailout. IMF terms add another billion.

Cyprus has to raise 13 billion. It’s over double the original amount.

....Cypriot parliament’s president, Yannakis Omirou, said:

“Instead of solidarity from our European partners, we have been served poison.”

It’s more than originally agreed. Expect more demands ahead. It usually happens. Black holes get deeper. Ordinary people suffer most.

Cyprus faces protracted Depression. Depositor accounts are being looted. Bail-in terms demand it. Expect pound of flesh amounts to increase. They may do exponentially. Nothing too extreme is off the table.

“We will resist,” said main opposition Akel party spokesman Giorgos Doulouka. “Every alternative scenario for the exit of our country from the troika and the memorandum now has to be studied.”

“They are eating us alive. What Greece suffered in three years, Cyprus is experiencing in a matter of weeks. All the extra measures that the government will now have to take will be at the expense of ordinary people. It is outrageous.”..

Grand Theft Cyprus: “Deadly Economic Medicine” | Global Research



Bail-in....MORE LATER ON THE BAIL-IN SCAM.



Grand Theft Bank: Cyprus and the 80% solution.

More confirmation on the 80% number from the WSJ last night.

Wall Street Journal

After two attempts at securing a bailout deal in March that pushed Cyprus to the brink of exiting the euro, the country faces major obstacles. To secure the aid, it agreed to wind down its second-largest lender, Cyprus Popular Bank PCL, and radically restructure the largest, Bank of Cyprus PCL.

GRAND THEFT BANK: 80% Of Your Money Will Be Stolen In

 

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I've been meaning to read this, but haven't got around to it yet. I think there is a free version online, but if not, I'll have to order it... one day!

Confessions of an Economic Hit Man
John Perkins
http://library.uniteddiversity.coop/Money_and_Economics/confessions_of_an_economic_hitman.pdf

 

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...it is also a good time to stand back, to reassess whether our economy is soundly based. I would contest that it is not, not for the reason to which the noble Lord, Lord Eatwell, alluded, which is that it is the Government’s fault, but our whole monetary system is utterly dishonest, as it is debt-based. “Dishonest” is a strong word, but a system which by its very actions causes the value of money to decrease is dishonest and has within it its own seeds of destruction. We did not vote for it. It grew upon us gradually but markedly since 1971 when the commodity-based system was abandoned.

Let us look at what has happened since then. The money supply in 1971 was just under £31 billion. At the end of the third quarter of last year, it was about £665 billion. In 25 years it has grown by a staggering 2,145 per cent. Where has the money come from? Interestingly, the Government have only minted a further £20 billion in that time. It is the banks, the building societies and our commercial lenders who have created the balance of £614 billion. If this rate of growth is projected over the next 25 years, the money supply in 2022 will be over £14,000 billion.

All that new money bears interest paid either by us as individuals, by companies or by the Government. Today the Government pay over £30 billion annually in interest charges — coincidentally about the same as the total money supply only 25 years ago. Governments since then have abdicated their responsibility for producing new money and controlling the money supply so that now they are marginalised. In 1971 government notes and coins accounted for 14 per cent of the money supply. Now it is only about 3.5 per cent. “So what?”, noble Lords might ask.

The problem is that it is commercial lending that has boosted the money supply, thus increasing debt and, as sure as night follows day, inflation follows growth in money supply of this sort...

Conventional wisdom tells us that in order to create new jobs and boost the economy, interest rates have to be reduced. That has happened. People are encouraged to borrow to invest and spend. That has happened. As the continuing flow of new money finds its way into the economy, inflation will follow and up will go interest charges again to reduce the level of borrowing. In order to pay the increasing levels of interest, borrowers will once more have to reduce expenditure in other areas of economic activity. The cycle will continue, but the next time, as before, we will all start deeper in debt and with a burden harder to carry.

Personal debt has already increased by nearly 3,000 per cent since 1971.

How much more can we take? I hope, for the sake of our economy, without which we cannot finance what we want to see — a good health service and a good social security system among other things — we will question this conventional wisdom.

We all want our businesses to succeed, but under the existing system the irony is that the better our banks, building societies and lending institutions do, the more debt is created. The noble Lord, Lord Kingsdown, said that there is little that can be done about debt. No, I do not believe that. There is a different way: it is an equity-based system and one in which those businesses can play a responsible role. The next government must grasp the nettle, accept their responsibility for controlling the money supply and change from our debt-based monetary system. My Lords, will they? If they do not, our monetary system will break us and the sorry legacy we are already leaving our children will be a disaster.

Criticism of fractional reserve banking
Criticism of fractional reserve banking - Mises Wiki



LET'S SEE.....I WONDER IF THERE'S A COMMON EQUIVALENT TO THE FEDERAL RESERVE/IMF PONZI LARCENY SCHEME:



Payday Loans: Beware of These Dangerous Loans
Easy Money Doesn't Come Free

These loans usually carry a high price tag. Finance charges are from 15 to 30 percent of the amount being borrowed. Since it’s 15 to 30 percent on just a few weeks, if’s comparable to getting a loan with an annual percentage rate of nearly 800 percent.

Because payday loans are so easy to get and lack the traditional credit checks, companies often prey on lower income neighborhoods knowing they are more likely to obtain one of these loans. The down side to this is most of these people are already experiencing financial hardship and borrowing money with such a high interest rate just makes matters worse. In addition, many of these people find themselves unable to repay the loan when it comes due.

You may also want to consider a pawn shop. Most people have something of value that can be pawned such as old jewelry, tools and electronics that can be used as collateral for a short-term loan from the pawn shop. You get cash for your item and you can still come back and repay the loan and get your item back. If you can’t repay the loan, the pawn shop keeps the item you gave them. So, you ended up basically selling your item to them. This is often a better alternative than getting an unsecured payday loan and being hit with exorbitant fees and finding yourself in a dangerous debt spiral.

Payday Loans: Beware of These Dangerous Loans


- DEBT BASED ECONOMY: experiencing financial hardship and borrowing money

- THE POUND OF FLESH LOAN: already experiencing financial hardship and borrowing money with such a high interest rate just makes matters worse.

- THE ALTERNATIVE: something of value that can be pawned.....that can be used as collateral for a short-term loan.

- THE IMF'S ROLE - THE ONE-TWO PUNCH: something of value that can be pawned.....you can’t repay the loan, the pawn shop keeps the item you gave them....AND demands you still pay back the loan...AND demands....AND.....AND:

WHERE DID ALL THE MONEY THEY TOOK FROM YOU GO?

to the "poorer nations"? uh...nooooooo....let's see.....um....hmm....where did that money go?

.......when all they gave you to start with was FAKE MONEY created from nothing - money which is actually "CREDIT" < which is DEBT?

 

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oh...okay...the IMF will tell me how it works:

INTERNATIONAL MONETARY FUND

Understanding Financial Interconnectedness

http://www.imf.org/external/np/pp/eng/2010/100410.pdf

 Mapping global risks. Understanding the nature of these interconnections is essential for tracking the build-up of systemic risk concentrations, identifying the ―fault lines‖ along which financial shocks propagate, and enhancing macro-prudential surveillance and policy making. This paper takes initial steps toward understanding financial interconnectedness by first outlining the architecture of cross-border finance and then exploring two related fault lines—funding models and ratings—that played a pivotal role in the global financial crisis.

 Architecture of cross-border finance. The vast majority of global finance is intermediated by a handful of large, complex financial institutions (LCFIs), which transact on a few payments and settlements systems and operate out of a small set of countries that serve as global common lenders and borrowers. These countries form the ―core of cross-border financial flows and connect countries with one another. The transmission of shocks and the spillover of policies and financial conditions occur largely through these core economies.

...

uh....how hard is it to understand fraud?

just have a look at this little section:

Balance sheet transformations

ROTFLMO

["In the run up to the crisis...."]

the crisis? what caused "the crisis"?

....

faulty intelligence? mismanagement?
or is it going exactly the way they want it to.
like......

if you are the wealthiest families in the world - how would you go about getting IT ALL?
eh.....Daniel's 70th week is harder to understand than this simple scam.

ta.

 

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The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets.

“The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability.

to restore debt sustainability
to restore debt sustainability
to restore debt sustainability


mkay. whatevah.

 

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[video=youtube;m4dGx_cahlk]http://www.youtube.com/watch?v=m4dGx_cahlk[/video]

12-year old girl explains world debt

.....




hahaha

..

she quotes Jesus re - the moneychangers.
sweetheart.
out of the mouths of babes.

 

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Attorney General of N.Y. Is Said to Face Pressure on Bank Foreclosure Deal
By GRETCHEN MORGENSON
Published: August 21, 2011

Terms of the possible settlement under consideration center on foreclosure improprieties like so-called robo-signing and submitting apparently forged documents to the courts to speed up the process of removing troubled borrowers from homes. Negotiations on this deal have been led by Thomas J. Perrelli, associate attorney general of the United States, and Tom Miller, the attorney general of Iowa.

An initial term sheet outlining a possible settlement emerged in March, with institutions including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo being asked to pay about $20 billion that would go toward loan modifications and possibly counseling for homeowners.

In exchange, the attorneys general participating in the deal would have agreed to sign broad releases preventing them from bringing further litigation on matters relating to the improper bank practices.

http://www.nytimes.com/2011/08/22/b...-said-to-face-pressure-to-back-bank-deal.html


what's 20 Bil if it buys you immunity?

...

"The banks balked at the $20 billion figure"

why do we have to paaayeeeeee?