Zero Hedge – TYLER DURDEN – Sep 26, 2011
In an interview on BBC News this morning that left the hosts gob-smacked (google it… it is the BBC after all), Alessio Rastani outlines in a mere three-and-a-half-minutes what we all know and most ignore. While the whole interview is worth watching, the money shot for us was “This economic crisis is like a cancer, if you just wait and wait hoping it is going to go away, just like a cancer it is going to grow and it will be too late!”. While he dreams of recessions, sees Goldman ruling the world, and urges people to prepare, it is hard to disagree with much (or actually anything) of what he says and obviously interventions and machinations means we will have days like this (in Silver for instance), there is only one endgame here and we hope there is less hopeful euphoria (and more preparedness) as we pull back the curtain further and further. Go to story
The Economic Collapse – Sep 1, 2011
Goldman Sachs is doing it again. Goldman is telling the public that everything is going to be just fine, but meanwhile they are advising their top clients to bet on a huge financial collapse. On August 16th, a 54 page report authored by Goldman strategist Alan Brazil was distributed to institutional clients. The general public was not intended to see this report. Fortunately, some folks over at the Wall Street Journal got their hands on a copy and they have filled us in on some of the details. It turns out that Goldman Sachs secretly believes that an economic collapse is coming, and they have some very interesting ideas about how to make money in the turbulent financial environment that we will soon be entering. In the report, Brazil says that the U.S. debt problem cannot be solved with more debt, that the European sovereign debt crisis is going to get even worse and that there are large numbers of financial institutions in Europe that are on the verge of collapse. If this is what people at the highest levels of the financial world are talking about, perhaps we should all start paying attention. Go to story
excerpt from moring walk conversation, Los Angeles, December 31, 1973:
PRAJAPATI: Actually, I was concerned this morning about inflation. The government and the newspapers, they say the biggest problem today is inflation. From our Krishna conscious standpoint, how can we cure this problem of inflation?
PRABHUPADA: It is very simple. Don’t accept paper currency. It must be gold or some metal worth. Just like one dollar, it must be worth one dollar metal. Then it is solved. But they want to cheat. How it can be solved? Because if I pay you one dollar, I must pay you value for one dollar. But it is the cheating process is going on, “I pay you one dollar, a piece of paper. That’s all.” So you accept cheating, and I also cheat. Government allows. So how the problem can be solved? It is cheating. But the government allows it as law. And you accept, I accept. Then how they can be solved, solution? This is the solution.
PRAJAPATI: In the economy itself there isn’t actually enough money to, that’s even in the banks…
PRABHUPADA: That is cheating. Therefore I say cheating. I have no money. I give you simply paper. I promise to pay hundred dollars. What is the use of that promise if I have no money? But you want to be cheated. I cheat you. That’s all. You are satisfied of being cheated by me; so I take the advantage and I cheat you. I give you a paper. That’s all.
BAHULASVA: Real money is gold and silver.
PRABHUPADA: Any… It must be value. According to the market price, it must be value. Whatever it may be. Gold is taken, because gold is the most valuable metal. A small piece of gold, it can carry two hundred dollars. But if I give you iron, then you have to bring another, what is called, bus, to carry it. (laughter) So therefore gold standard is accepted everywhere. There is a standard price of gold, so when I pay you money, it must be, carry the value in gold. That’s all. Then there is no inflation. The people want to be cheated, and people cheat. That’s all.
BAHULASVA: In the Srimad-Bhagavatam, Prabhupada, you say that Kali became gold standardized.
PRABHUPADA: That is another point. That one who has gold, he can purchase these four kinds of sinful activities: meat-eating, gambling, intoxication, illicit sex. If you have money, you can get illicit sex from big, big quarters. Is it not?
PRABHUPADA: Yes. The sinful activities have increased because the world has produced too much wealth. Because they can purchase sinful activities. And that is being increased by inflation. False money I have got, and with that false money I can purchase all this illicit sex, wine, intoxication, and… It is just like nowadays, bank is giving you a card, “Americard…” What is that?
KARANDHAR: Charge card. Bank Americard.
PRABHUPADA: Ah. So you simply show the card, you get the goods. So to exchange, it has become very cheap. So cheaply you can purchase. Therefore cheaply you can purchase sinful things also. The people are becoming sinful.
The modern economy is, “Engage people in hard working to produce, and by artificial cheating, secure the goods, commodities.” This is modern economy. So a worker is getting three thousand dollar per month, but he is getting paper. But he is thinking that “I am getting money.” He is giving his labor, and things are being produced. This is the policy. “Cheat him. Without giving money, give him paper, and get his labor, and produce goods.” This is modern economy. Is it not? A laborer, a worker, is given high salary, high wages. So what he is getting? It is paper. And he is very enthusiastic to give his labor. So production is more. And when you go to purchase the products, then you have to pay again. Whatever you have earned, you have to pay everything, pay to the bank or pay to the man.
Simply cheating process is going on. There is no solution. People are cheaters. They have been taught how to cheat. Everyone has got a cheating propensity. That is conditioned life. Four defects: to commit mistake, to become illusioned, to cheat and imperfectness of the senses. So cheating propensity everyone has got. So that cheating propensity is being encouraged more and more. Instead of minimizing it or stop it, it is being encouraged.
BAHULASVA: So unless they become Krishna conscious, then there is no solution.
PRABHUPADA: No. Harav abhaktasya kuto mahad-gunah. There cannot be any good quality in human society unless accepts Krishna consciousness.
That issue metal coin and the problem will be solved. But they will not take your advice.
PRAJAPATI: This is part of our platform. To even run for political office, we need solutions to the problems to offer as a platform. We will draw up various bills, ready for legislation, show them that we are serious.
PRABHUPADA: So how you’ll present it? The cheating process is going on. Unless you become God conscious, the cheating process will not stop. So there is no solution. Yes. God consciousness. Then everyone will be honest, and everything will be adjusted.
Everyone can understand this is pure cheating. I give you a hundred dollars, a piece of paper. That’s all. And you accept it. You want to be cheated. You thought, that “I have got now daily, hundred dollars. So let me work very hard.” He does not consider that “I am not getting a hundred dollars. I am getting a piece of paper.” So people have no brain to understand even. “This is not hundred dollars. Give me cash, hundred dollars.” Then everything, solution will be… There will be no inflation. Because I know that paying you a piece of paper, I can cheat you, therefore I am printing notes, to cheat so many people. Therefore inflation. But when there will be no possibility to cheat you, then there will be no inflation. Here I have got the opportunity, because I know that pushing forward a piece of paper, I can cheat so many people. So there must be inflation. Is it not? This is not psychological? If I know that I can cheat you by this instrument, so why shall I not increase that? That is inflation. What do you think, Karandhara?
KARANDHAR: That’s the basic principle, yes.
PRABHUPADA: Yes. I am cheating you, and people accepting my cheating.
KARANDHAR: The governments actually started the whole thing. They instituted paper money and they instituted it because it is a cheating process. But everyone is participating. So it is just going on and on. That is the real cause of inflation.
PRABHUPADA: Yes. That’s it. They are getting encouragement in their cheating business.
BAHULASVA: They won’t let you have any gold.
PRABHUPADA: Now they have made law that you cannot store gold?
KARANDHAR: That’s been since 1933.
PRABHUPADA: Just see.
KARANDHAR: Americans cannot own gold, store gold. Pretty soon they are going to pass the same law for silver.
PRABHUPADA: Just see. Even they cannot have ornaments.
KARANDHAR: Well, you can have ornaments, jewelry.
PRABHUPADA: So by law they are cheating. So how you can stop?
KARANDHAR: Now they have introduced a law that even the penny, which is the smallest denomination, it used to made out of copper, so now they are going to make it out of aluminium, because copper is too expensive.
PRABHUPADA: Just see.
BAHULASVA: It will be worth less than a penny when it is made out of aluminium.
PRABHUPADA: Why not cement? (laughter) Because by law everything will be acceptable. Make it cement.
BAHULASVA: Srila Prabhupada, what can we do to curb down these rascals?
PRABHUPADA: Chant Hare Krishna.
BAHULASVA: That will curb them down.
PRABHUPADA: Yes. They will be purified. The more you chant Hare Krishna, they will be purified. This is… All problems are there on account of misunderstanding. What we are distributing? We are simply moving misunderstanding and bringing them to knowledge. This is our propaganda. So Mr. Theologician, is this suggestion appealing to you?
PRAJAPATI: It seems all right for ordinary dealings, Srila Prabhupada, having this money, what’s going on, but for large scale transactions it might be very difficult.
PRAJAPATI: And as the practical basis, transactions of thousands and thousands of dollars, would be…
PRABHUPADA: That will be good for the people. Because large scale transaction is there, therefore the capitalists hoarding. Capitalists hoarding. Goods are there, everything is there. You pay black price, you get it. Then, when somebody’s hoarding, he is not giving to the market. So if the large scale industry and trade becomes stopped, that is good for people.
JAGAJIVANA: Does that mean the same amount of gold is here?
PRABHUPADA: No, larger scale… Suppose if you want to store, say, thousand kilos or a thousand bags of rice, so you have to pay me gold. But you have no such gold. Therefore large scale industry will be stopped. Just see.
KARANDHAR: Then the price of rice would go very low.
PRABHUPADA: Yes. Then you get actual price and actual value. Goods are there, any part of the world you…, there is enough commodity. But these rascals, they are hoarding, and they are not giving in right time. So people are suffering.
KARANDHAR: Yes. There’s a… They buy now. They buy the goods before they are even grown, from the commodity market.
PRABHUPADA: Yes, because they can pay in this paper, the bank will advance. So as soon as you… You have to introduce this metal coins, value. The whole cheating scheme will fail.