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Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)

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  • Gerry Agnew
    Every now and again, I see from a reader an article which gives me pause for thought. A gentleman in Brazil sent along something a few days ago which amply
    Message 1 of 6 , Jul 2, 2014
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      Every now and again, I see from a reader an article which gives me pause for thought. A gentleman in Brazil sent along something a few days ago which amply fills that “pause”. Thank you, EB!
       
      Here is a question he asked, and it underlies a great deal of what is happening in the world today:

      What is to stop a foreign bank from simply printing its own currency and trading it on the currency market fordollars, to be invested in the US stock market or US real estate market? What is to stop central banks from printing up money competitively, in a mad rush to own the world’s largest companies?

      I (Gerry) might also add: what is to stop these same central banks from printing currencies, selling them for USD, and then buying oil with them? Is this why oil is in such severe backwardation on the COMEX?

       

      http://www.globalresearch.ca/buying-up-the-planet-out-of-control-central-banks-on-a-corporate-buying-spree/5387973

      ****************************************

      What indeed, and the answer must simply be “nothing”. So many times we see in the conspiracy pages (and they they are not so “off-the-wall” with their suppositions anymore) that governments want their people to do “X,Y, and Z” and all too quickly the major companies are scrambling, without an ounce of backbone it seems, to line up behind their masters in Washington (of course). This also seems to be done in other financial capitals such as Zurich, London, and Peking (in particular it seems). So, if the article is correct, then what Paul Craig Roberts (former senior US Treasury officer) is saying is also correct. This is that the US Treasury forces other countries to print their own currencies, sell them for USD, and then invest these USD in US Treasury securities. This keeps the US Congress spending as though there were no tomorrow (which we may well see happen if Marty Armstrong is correct in his calls for financial markets in just over a year).

       

      Let us return to cases here which are the purchase of equities, and what looks to be the US varieties. In recent months, we have seen comments coming out of Peking that China was going to stop accumulating USD. I suspect that what happened in the really stupid Debt Ceiling crisis last Fall gave the Chinese leadership pause for thought at where their heretofore open ended purchases of USD Treasuries were leading. Given that China is the world’s biggest buyer of US Treasuries, I would have thought that there would have been at least some sort of response from Washington. Not a word, at least anything which was expressed publicly. http://www.treasury.gov/ticdata/Publish/mfh.txt is the US Government website which shows what various foreign governments have purchased as far as US Treasuries are concerned. It is just under $ 6 trillion total as of this past April (the most recent available) with China holding something like $ 1.25 trillion.

       

      My guess is that China has purchased these US Treasury securities to buy time to modernise their military and upgrade their economy without any overt US criticism and/or interference. In this respect they have succeeded admirably as the US, probably not to risk offending their biggest creditor, have not done much to dissuade China from its course of action. I would also think that US businesses are not really willing to see China irritated by a bureaucratic pencil pusher in Washington who cannot see the world from inside his/her little confined working area. After all, billions in business profits must not be disturbed under any circumstances!

       

      Gerry

      **************************************************

    • Tom Robertson
      Gerry—and everyone else: Regarding the item in the following about “printing money.” Let’s be real! Most of the money in circulation is no longer
      Message 2 of 6 , Jul 3, 2014
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        Gerry—and everyone else:





        Regarding the item in the following about “printing money.”





        Let’s be real!





        Most of the money in circulation is no longer “printed on paper” and has been increasingly so at least since the 1980s, as digital technology increasingly became the backbone of the financial system, and “money” increasingly became nothing more than abstract assemblies of 1s and 0s in computer memory.





        And I will never forget a time around 1980, when I was consulting with the U.S. Department of Energy and we had this meeting in a room that was filled with about 20 washing machine sized apparatuses I learned were the computer memory units the organization used to manage its national/global energy database.





        I was also told, with some admiration by the teller, that the units held about 20 megabytes each, for a total of 400 megabytes in the room—which sounded like a lot back when we were proud to have a computer with a 160 kilobyte floppy drive.





        Fast forward to today.





        I recently paid around $120.00 for a 256 Gig SDXC class memory card to increase my laptops ability to deal with my digital photos, which average about 5 megabytes each—and I take a lot of them.





        So, in some 35 years, we have gone from a room full of big memory machines to many times that memory available on a item the size of a postage stamp (as if folks know what they are.)





        As for digitized vs paper money. Anyone know what the ratio is?





        Tom Robertson, Moderator, energyresources Group on Yahoo








        From: energyresources@yahoogroups.com [mailto:energyresources@yahoogroups.com]
        Sent: Wednesday, July 02, 2014 9:06 AM
        To: energyresources@yahoogroups.com
        Subject: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)








        Every now and again, I see from a reader an article which gives me pause for thought. A gentleman in Brazil sent along something a few days ago which amply fills that “pause”. Thank you, EB!





        Here is a question he asked, and it underlies a great deal of what is happening in the world today:


        What is to stop a foreign bank from simply printing its own currency and trading it on the currency market for dollars, to be invested in the US stock market or US real estate market? What is to stop central banks from printing up money competitively, in a mad rush to own the world’s largest companies?


        I (Gerry) might also add: what is to stop these same central banks from printing currencies, selling them for USD, and then buying oil with them? Is this why oil is in such severe backwardation on the COMEX?





        http://www.globalresearch.ca/buying-up-the-planet-out-of-control-central-banks-on-a-corporate-buying-spree/5387973


        ****************************************


        What indeed, and the answer must simply be “nothing”. So many times we see in the conspiracy pages (and they they are not so “off-the-wall” with their suppositions anymore) that governments want their people to do “X,Y, and Z” and all too quickly the major companies are scrambling, without an ounce of backbone it seems, to line up behind their masters in Washington (of course). This also seems to be done in other financial capitals such as Zurich, London, and Peking (in particular it seems). So, if the article is correct, then what Paul Craig Roberts (former senior US Treasury officer) is saying is also correct. This is that the US Treasury forces other countries to print their own currencies, sell them for USD, and then invest these USD in US Treasury securities. This keeps the US Congress spending as though there were no tomorrow (which we may well see happen if Marty Armstrong is correct in his calls for financial markets in just over a year).





        Let us return to cases here which are the purchase of equities, and what looks to be the US varieties. In recent months, we have seen comments coming out of Peking that China was going to stop accumulating USD. I suspect that what happened in the really stupid Debt Ceiling crisis last Fall gave the Chinese leadership pause for thought at where their heretofore open ended purchases of USD Treasuries were leading. Given that China is the world’s biggest buyer of US Treasuries, I would have thought that there would have been at least some sort of response from Washington. Not a word, at least anything which was expressed publicly. http://www.treasury.gov/ticdata/Publish/mfh.txt is the US Government website which shows what various foreign governments have purchased as far as US Treasuries are concerned. It is just under $ 6 trillion total as of this past April (the most recent available) with China holding something like $ 1.25 trillion.





        My guess is that China has purchased these US Treasury securities to buy time to modernise their military and upgrade their economy without any overt US criticism and/or interference. In this respect they have succeeded admirably as the US, probably not to risk offending their biggest creditor, have not done much to dissuade China from its course of action. I would also think that US businesses are not really willing to see China irritated by a bureaucratic pencil pusher in Washington who cannot see the world from inside his/her little confined working area. After all, billions in business profits must not be disturbed under any circumstances!





        Gerry


        **************************************************










        [Non-text portions of this message have been removed]
      • Gerry Agnew
        Good morning Tom! I suppose “printing money” is still an anachronism from the good old days of the 1980s! However, the expression still remains in force
        Message 3 of 6 , Jul 4, 2014
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          Good morning Tom!
           
          I suppose “printing money” is still an anachronism from the good old days of the 1980s! However, the expression still remains in force even though immense amounts of money are simply “created” with the push of a computer button these days. So when I talk about “printing money” this is what I am referring to – everybody understands what that is on a gut level.
           
          So, central banks are “printing money” hand over first these days and have found out (as the Global Research article makes clear) that one can print, sell on the FX markets, and acquire real wealth in doing so. What a racket, although the distortions caused by this will ultimately have to show up in some manner.
           
          Gerry
           
          *********************************************
           
          Sent: Thursday, July 03, 2014 6:07 PM
          Subject: RE: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)
           
           

          Gerry—and everyone else:

          Regarding the item in the following about “printing money.”

          Let’s be real!

          Most of the money in circulation is no longer “printed on paper” and has been increasingly so at least since the 1980s, as digital technology increasingly became the backbone of the financial system, and “money” increasingly became nothing more than abstract assemblies of 1s and 0s in computer memory.

          And I will never forget a time around 1980, when I was consulting with the U.S. Department of Energy and we had this meeting in a room that was filled with about 20 washing machine sized apparatuses I learned were the computer memory units the organization used to manage its national/global energy database.

          I was also told, with some admiration by the teller, that the units held about 20 megabytes each, for a total of 400 megabytes in the room—which sounded like a lot back when we were proud to have a computer with a 160 kilobyte floppy drive.

          Fast forward to today.

          I recently paid around $120.00 for a 256 Gig SDXC class memory card to increase my laptops ability to deal with my digital photos, which average about 5 megabytes each—and I take a lot of them.

          So, in some 35 years, we have gone from a room full of big memory machines to many times that memory available on a item the size of a postage stamp (as if folks know what they are.)

          As for digitized vs paper money. Anyone know what the ratio is?

          Tom Robertson, Moderator, energyresources Group on Yahoo

          From: energyresources@yahoogroups.com [mailto:energyresources@yahoogroups.com]
          Sent: Wednesday, July 02, 2014 9:06 AM
          To: energyresources@yahoogroups.com
          Subject: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)

          Every now and again, I see from a reader an article which gives me pause for thought. A gentleman in Brazil sent along something a few days ago which amply fills that “pause”. Thank you, EB!

          Here is a question he asked, and it underlies a great deal of what is happening in the world today:

          What is to stop a foreign bank from simply printing its own currency and trading it on the currency market for dollars, to be invested in the US stock market or US real estate market? What is to stop central banks from printing up money competitively, in a mad rush to own the world’s largest companies?

          I (Gerry) might also add: what is to stop these same central banks from printing currencies, selling them for USD, and then buying oil with them? Is this why oil is in such severe backwardation on the COMEX?

          http://www.globalresearch.ca/buying-up-the-planet-out-of-control-central-banks-on-a-corporate-buying-spree/5387973

          ****************************************

          What indeed, and the answer must simply be “nothing”. So many times we see in the conspiracy pages (and they they are not so “off-the-wall” with their suppositions anymore) that governments want their people to do “X,Y, and Z” and all too quickly the major companies are scrambling, without an ounce of backbone it seems, to line up behind their masters in Washington (of course). This also seems to be done in other financial capitals such as Zurich, London, and Peking (in particular it seems). So, if the article is correct, then what Paul Craig Roberts (former senior US Treasury officer) is saying is also correct. This is that the US Treasury forces other countries to print their own currencies, sell them for USD, and then invest these USD in US Treasury securities. This keeps the US Congress spending as though there were no tomorrow (which we may well see happen if Marty Armstrong is correct in his calls for financial markets in just over a year).

          Let us return to cases here which are the purchase of equities, and what looks to be the US varieties. In recent months, we have seen comments coming out of Peking that China was going to stop accumulating USD. I suspect that what happened in the really stupid Debt Ceiling crisis last Fall gave the Chinese leadership pause for thought at where their heretofore open ended purchases of USD Treasuries were leading. Given that China is the world’s biggest buyer of US Treasuries, I would have thought that there would have been at least some sort of response from Washington. Not a word, at least anything which was expressed publicly. http://www.treasury.gov/ticdata/Publish/mfh.txt is the US Government website which shows what various foreign governments have purchased as far as US Treasuries are concerned. It is just under $ 6 trillion total as of this past April (the most recent available) with China holding something like $ 1.25 trillion.

          My guess is that China has purchased these US Treasury securities to buy time to modernise their military and upgrade their economy without any overt US criticism and/or interference. In this respect they have succeeded admirably as the US, probably not to risk offending their biggest creditor, have not done much to dissuade China from its course of action. I would also think that US businesses are not really willing to see China irritated by a bureaucratic pencil pusher in Washington who cannot see the world from inside his/her little confined working area. After all, billions in business profits must not be disturbed under any circumstances!

          Gerry

          **************************************************

          [Non-text portions of this message have been removed]

          No virus found in this message.
          Checked by AVG - www.avg.com
          Version: 2014.0.4716 / Virus Database: 3986/7793 - Release Date: 07/03/14

        • Eric Pfeiffer
          It is not just the central banks.  Private equity across the globe is also printing money as it balloons it s leverages on securities that  were issued
          Message 4 of 6 , Jul 4, 2014
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            It is not just the central banks.  Private equity across the globe is also "printing money"
            as it balloons it's leverages on securities that  were issued against
            "assets" whose values increase rapidly as the issuances of central banks rises
            rapidly.
                 I wonder if anyone has any idea as to how much money, as defined by all vehicles
            traded as currency equivalents, is in circulation globally at current values.  As it is all computer data
            points which exist from instant to instant and little more, it would be a number that
            varied quickly. But one wonders, in total, what is floating about across the globe.
            The number would be in the quadrillions of USD equivalents. It would be interesting
            even though largely meaningless.
               As I pick up bits and pieces of the TXU bankruptcy thanks the KKR buyout
            in 2007,  the incomprehensibility of the global financial system has displayed
            itself as the financial tangle that KKR created to finance the takeover has left
            the presiding judge unable to understand the story and even the KKR team
            has not been able to explain the setup clearly to define who loses what.


            On Friday, July 4, 2014 8:19 AM, "'Gerry Agnew' gaea@... [energyresources]" <energyresources@yahoogroups.com> wrote:


             
            Good morning Tom!
             
            I suppose “printing money” is still an anachronism from the good old days of the 1980s! However, the expression still remains in force even though immense amounts of money are simply “created” with the push of a computer button these days. So when I talk about “printing money” this is what I am referring to – everybody understands what that is on a gut level.
             
            So, central banks are “printing money” hand over first these days and have found out (as the Global Research article makes clear) that one can print, sell on the FX markets, and acquire real wealth in doing so. What a racket, although the distortions caused by this will ultimately have to show up in some manner.
             
            Gerry
             
            *********************************************
             
            Sent: Thursday, July 03, 2014 6:07 PM
            Subject: RE: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)
             
             
            Gerry—and everyone else:

            Regarding the item in the following about “printing money.”

            Let’s be real!

            Most of the money in circulation is no longer “printed on paper” and has been increasingly so at least since the 1980s, as digital technology increasingly became the backbone of the financial system, and “money” increasingly became nothing more than abstract assemblies of 1s and 0s in computer memory.

            And I will never forget a time around 1980, when I was consulting with the U.S. Department of Energy and we had this meeting in a room that was filled with about 20 washing machine sized apparatuses I learned were the computer memory units the organization used to manage its national/global energy database.

            I was also told, with some admiration by the teller, that the units held about 20 megabytes each, for a total of 400 megabytes in the room—which sounded like a lot back when we were proud to have a computer with a 160 kilobyte floppy drive.

            Fast forward to today.

            I recently paid around $120.00 for a 256 Gig SDXC class memory card to increase my laptops ability to deal with my digital photos, which average about 5 megabytes each—and I take a lot of them.

            So, in some 35 years, we have gone from a room full of big memory machines to many times that memory available on a item the size of a postage stamp (as if folks know what they are.)

            As for digitized vs paper money. Anyone know what the ratio is?

            Tom Robertson, Moderator, energyresources Group on Yahoo

            From: energyresources@yahoogroups.com [mailto:energyresources@yahoogroups.com]
            Sent: Wednesday, July 02, 2014 9:06 AM
            To: energyresources@yahoogroups.com
            Subject: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)

            Every now and again, I see from a reader an article which gives me pause for thought. A gentleman in Brazil sent along something a few days ago which amply fills that “pause”. Thank you, EB!

            Here is a question he asked, and it underlies a great deal of what is happening in the world today:

            What is to stop a foreign bank from simply printing its own currency and trading it on the currency market for dollars, to be invested in the US stock market or US real estate market? What is to stop central banks from printing up money competitively, in a mad rush to own the world’s largest companies?

            I (Gerry) might also add: what is to stop these same central banks from printing currencies, selling them for USD, and then buying oil with them? Is this why oil is in such severe backwardation on the COMEX?

            http://www.globalresearch.ca/buying-up-the-planet-out-of-control-central-banks-on-a-corporate-buying-spree/5387973

            ****************************************

            What indeed, and the answer must simply be “nothing”. So many times we see in the conspiracy pages (and they they are not so “off-the-wall” with their suppositions anymore) that governments want their people to do “X,Y, and Z” and all too quickly the major companies are scrambling, without an ounce of backbone it seems, to line up behind their masters in Washington (of course). This also seems to be done in other financial capitals such as Zurich, London, and Peking (in particular it seems). So, if the article is correct, then what Paul Craig Roberts (former senior US Treasury officer) is saying is also correct. This is that the US Treasury forces other countries to print their own currencies, sell them for USD, and then invest these USD in US Treasury securities. This keeps the US Congress spending as though there were no tomorrow (which we may well see happen if Marty Armstrong is correct in his calls for financial markets in just over a year).

            Let us return to cases here which are the purchase of equities, and what looks to be the US varieties. In recent months, we have seen comments coming out of Peking that China was going to stop accumulating USD. I suspect that what happened in the really stupid Debt Ceiling crisis last Fall gave the Chinese leadership pause for thought at where their heretofore open ended purchases of USD Treasuries were leading. Given that China is the world’s biggest buyer of US Treasuries, I would have thought that there would have been at least some sort of response from Washington. Not a word, at least anything which was expressed publicly. http://www.treasury.gov/ticdata/Publish/mfh.txt is the US Government website which shows what various foreign governments have purchased as far as US Treasuries are concerned. It is just under $ 6 trillion total as of this past April (the most recent available) with China holding something like $ 1.25 trillion.

            My guess is that China has purchased these US Treasury securities to buy time to modernise their military and upgrade their economy without any overt US criticism and/or interference. In this respect they have succeeded admirably as the US, probably not to risk offending their biggest creditor, have not done much to dissuade China from its course of action. I would also think that US businesses are not really willing to see China irritated by a bureaucratic pencil pusher in Washington who cannot see the world from inside his/her little confined working area. After all, billions in business profits must not be disturbed under any circumstances!

            Gerry

            **************************************************

            [Non-text portions of this message have been removed]

            No virus found in this message.
            Checked by AVG - http://www.avg.com/
            Version: 2014.0.4716 / Virus Database: 3986/7793 - Release Date: 07/03/14


          • Denis Frith
            Sso the creation of fiat money increases the (monentary) wealth of society. This increases the ability of consumers to buy stuff, so decreasing natural
            Message 5 of 6 , Jul 5, 2014
            • 0 Attachment
              Sso the creation of fiat money increases the (monentary) wealth of society. This increases the ability of consumers to buy stuff, so decreasing natural material wealth. This is no bargain as society will find out in due course.
              Denis
               
               
              Sent: Friday, July 04, 2014 at 10:40 PM
              From: "'Gerry Agnew' gaea@... [energyresources]" <energyresources@yahoogroups.com>
              To: energyresources@yahoogroups.com
              Subject: Re: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)
               

               

              Good morning Tom!
               
              I suppose “printing money” is still an anachronism from the good old days of the 1980s! However, the expression still remains in force even though immense amounts of money are simply “created” with the push of a computer button these days. So when I talk about “printing money” this is what I am referring to – everybody understands what that is on a gut level.
               
              So, central banks are “printing money” hand over first these days and have found out (as the Global Research article makes clear) that one can print, sell on the FX markets, and acquire real wealth in doing so. What a racket, although the distortions caused by this will ultimately have to show up in some manner.
               
              Gerry
               
              *********************************************
               
              Sent: Thursday, July 03, 2014 6:07 PM
              Subject: RE: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)
               
               

              Gerry—and everyone else:

              Regarding the item in the following about “printing money.”

              Let’s be real!

              Most of the money in circulation is no longer “printed on paper” and has been increasingly so at least since the 1980s, as digital technology increasingly became the backbone of the financial system, and “money” increasingly became nothing more than abstract assemblies of 1s and 0s in computer memory.

              And I will never forget a time around 1980, when I was consulting with the U.S. Department of Energy and we had this meeting in a room that was filled with about 20 washing machine sized apparatuses I learned were the computer memory units the organization used to manage its national/global energy database.

              I was also told, with some admiration by the teller, that the units held about 20 megabytes each, for a total of 400 megabytes in the room—which sounded like a lot back when we were proud to have a computer with a 160 kilobyte floppy drive.

              Fast forward to today.

              I recently paid around $120.00 for a 256 Gig SDXC class memory card to increase my laptops ability to deal with my digital photos, which average about 5 megabytes each—and I take a lot of them.

              So, in some 35 years, we have gone from a room full of big memory machines to many times that memory available on a item the size of a postage stamp (as if folks know what they are.)

              As for digitized vs paper money. Anyone know what the ratio is?

              Tom Robertson, Moderator, energyresources Group on Yahoo

              From: energyresources@yahoogroups.com [mailto:energyresources@yahoogroups.com]
              Sent: Wednesday, July 02, 2014 9:06 AM
              To: energyresources@yahoogroups.com
              Subject: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)

              Every now and again, I see from a reader an article which gives me pause for thought. A gentleman in Brazil sent along something a few days ago which amply fills that “pause”. Thank you, EB!

              Here is a question he asked, and it underlies a great deal of what is happening in the world today:

              What is to stop a foreign bank from simply printing its own currency and trading it on the currency market for dollars, to be invested in the US stock market or US real estate market? What is to stop central banks from printing up money competitively, in a mad rush to own the world’s largest companies?

              I (Gerry) might also add: what is to stop these same central banks from printing currencies, selling them for USD, and then buying oil with them? Is this why oil is in such severe backwardation on the COMEX?

              http://www.globalresearch.ca/buying-up-the-planet-out-of-control-central-banks-on-a-corporate-buying-spree/5387973

              ****************************************

              What indeed, and the answer must simply be “nothing”. So many times we see in the conspiracy pages (and they they are not so “off-the-wall” with their suppositions anymore) that governments want their people to do “X,Y, and Z” and all too quickly the major companies are scrambling, without an ounce of backbone it seems, to line up behind their masters in Washington (of course). This also seems to be done in other financial capitals such as Zurich, London, and Peking (in particular it seems). So, if the article is correct, then what Paul Craig Roberts (former senior US Treasury officer) is saying is also correct. This is that the US Treasury forces other countries to print their own currencies, sell them for USD, and then invest these USD in US Treasury securities. This keeps the US Congress spending as though there were no tomorrow (which we may well see happen if Marty Armstrong is correct in his calls for financial markets in just over a year).

              Let us return to cases here which are the purchase of equities, and what looks to be the US varieties. In recent months, we have seen comments coming out of Peking that China was going to stop accumulating USD. I suspect that what happened in the really stupid Debt Ceiling crisis last Fall gave the Chinese leadership pause for thought at where their heretofore open ended purchases of USD Treasuries were leading. Given that China is the world’s biggest buyer of US Treasuries, I would have thought that there would have been at least some sort of response from Washington. Not a word, at least anything which was expressed publicly. http://www.treasury.gov/ticdata/Publish/mfh.txt is the US Government website which shows what various foreign governments have purchased as far as US Treasuries are concerned. It is just under $ 6 trillion total as of this past April (the most recent available) with China holding something like $ 1.25 trillion.

              My guess is that China has purchased these US Treasury securities to buy time to modernise their military and upgrade their economy without any overt US criticism and/or interference. In this respect they have succeeded admirably as the US, probably not to risk offending their biggest creditor, have not done much to dissuade China from its course of action. I would also think that US businesses are not really willing to see China irritated by a bureaucratic pencil pusher in Washington who cannot see the world from inside his/her little confined working area. After all, billions in business profits must not be disturbed under any circumstances!

              Gerry

              **************************************************

              [Non-text portions of this message have been removed]
               

              No virus found in this message.
              Checked by AVG - www.avg.com
              Version: 2014.0.4716 / Virus Database: 3986/7793 - Release Date: 07/03/14

               

            • Gerry Agnew
              It is indeed no bargain, Denis. It will, at the very least, increase the volatility in key markets such as oil and ultimately drive it much higher. In plain
              Message 6 of 6 , Jul 5, 2014
              • 0 Attachment
                It is indeed no bargain, Denis. It will, at the very least, increase the volatility in key markets such as oil and ultimately drive it much higher. In plain English, what society gains from the printed liquidity it will lose (and then some) in the economic crunch from much higher energy prices.
                 
                Gerry
                 
                *********************************************************
                 
                Sent: Saturday, July 05, 2014 1:24 AM
                Subject: Re: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)
                 
                 

                Sso the creation of fiat money increases the (monentary) wealth of society. This increases the ability of consumers to buy stuff, so decreasing natural material wealth. This is no bargain as society will find out in due course.
                Denis
                 
                 
                Sent: Friday, July 04, 2014 at 10:40 PM
                From: "'Gerry Agnew' gaea@... [energyresources]" <energyresources@yahoogroups.com>
                To: energyresources@yahoogroups.com
                Subject: Re: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)
                 

                 

                Good morning Tom!
                 
                I suppose “printing money” is still an anachronism from the good old days of the 1980s! However, the expression still remains in force even though immense amounts of money are simply “created” with the push of a computer button these days. So when I talk about “printing money” this is what I am referring to – everybody understands what that is on a gut level.
                 
                So, central banks are “printing money” hand over first these days and have found out (as the Global Research article makes clear) that one can print, sell on the FX markets, and acquire real wealth in doing so. What a racket, although the distortions caused by this will ultimately have to show up in some manner.
                 
                Gerry
                 
                *********************************************
                 
                Sent: Thursday, July 03, 2014 6:07 PM
                Subject: RE: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)
                 
                 

                Gerry—and everyone else:

                Regarding the item in the following about “printing money.”

                Let’s be real!

                Most of the money in circulation is no longer “printed on paper” and has been increasingly so at least since the 1980s, as digital technology increasingly became the backbone of the financial system, and “money” increasingly became nothing more than abstract assemblies of 1s and 0s in computer memory.

                And I will never forget a time around 1980, when I was consulting with the U.S. Department of Energy and we had this meeting in a room that was filled with about 20 washing machine sized apparatuses I learned were the computer memory units the organization used to manage its national/global energy database.

                I was also told, with some admiration by the teller, that the units held about 20 megabytes each, for a total of 400 megabytes in the room—which sounded like a lot back when we were proud to have a computer with a 160 kilobyte floppy drive.

                Fast forward to today.

                I recently paid around $120.00 for a 256 Gig SDXC class memory card to increase my laptops ability to deal with my digital photos, which average about 5 megabytes each—and I take a lot of them.

                So, in some 35 years, we have gone from a room full of big memory machines to many times that memory available on a item the size of a postage stamp (as if folks know what they are.)

                As for digitized vs paper money. Anyone know what the ratio is?

                Tom Robertson, Moderator, energyresources Group on Yahoo

                From: energyresources@yahoogroups.com [mailto:energyresources@yahoogroups.com]
                Sent: Wednesday, July 02, 2014 9:06 AM
                To: energyresources@yahoogroups.com
                Subject: [energyresources] Update for July 3, 2014 - Newsletter (Who Owns Your Portfolio? -1)

                Every now and again, I see from a reader an article which gives me pause for thought. A gentleman in Brazil sent along something a few days ago which amply fills that “pause”. Thank you, EB!

                Here is a question he asked, and it underlies a great deal of what is happening in the world today:

                What is to stop a foreign bank from simply printing its own currency and trading it on the currency market for dollars, to be invested in the US stock market or US real estate market? What is to stop central banks from printing up money competitively, in a mad rush to own the world’s largest companies?

                I (Gerry) might also add: what is to stop these same central banks from printing currencies, selling them for USD, and then buying oil with them? Is this why oil is in such severe backwardation on the COMEX?

                http://www.globalresearch.ca/buying-up-the-planet-out-of-control-central-banks-on-a-corporate-buying-spree/5387973

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                What indeed, and the answer must simply be “nothing”. So many times we see in the conspiracy pages (and they they are not so “off-the-wall” with their suppositions anymore) that governments want their people to do “X,Y, and Z” and all too quickly the major companies are scrambling, without an ounce of backbone it seems, to line up behind their masters in Washington (of course). This also seems to be done in other financial capitals such as Zurich, London, and Peking (in particular it seems). So, if the article is correct, then what Paul CraigRoberts (former senior US Treasury officer) is saying is also correct. This is that the US Treasury forces other countries to print their own currencies, sell them for USD, and then invest these USD in US Treasury securities. This keeps the US Congress spending as though there were no tomorrow (which we may well see happen if Marty Armstrong is correct in his calls for financial markets in just over a year).

                Let us return to cases here which are the purchase of equities, and what looks to be the US varieties. In recent months, we have seen comments coming out of Peking that China was going to stop accumulating USD. I suspect that what happened in the really stupid Debt Ceiling crisis last Fall gave the Chinese leadership pause for thought at where their heretofore open ended purchases of USD Treasuries were leading. Given that China is the world’s biggest buyer of US Treasuries, I would have thought that there would have been at least some sort of response from Washington. Not a word, at least anything which was expressed publicly. http://www.treasury.gov/ticdata/Publish/mfh.txt is the US Government website which shows what various foreign governments have purchased as far as US Treasuries are concerned. It is just under $ 6 trillion total as of this past April (the most recent available) with China holding something like $ 1.25 trillion.

                My guess is that China has purchased these US Treasury securities to buy time to modernise their military and upgrade their economy without any overt US criticism and/or interference. In this respect they have succeeded admirably as the US, probably not to risk offending their biggest creditor, have not done much to dissuade China from its course of action. I would also think that US businesses are not really willing to see China irritated by a bureaucratic pencil pusher in Washington who cannot see the world from inside his/her little confined working area. After all, billions in business profits must not be disturbed under any circumstances!

                Gerry

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