- Why are the stocks of so many corporations taking plunges?
Because many of them are over-leveraged, meaning simply: they have too
much debt. Why do they have too much debt? Jefferson answered this very
question over a hundred years ago. To wit:
-
- "If the American people ever allow private banks
to control the issue of their money, first by inflation and then by deflation,
- the banks and corporations that will
- grow up around them, will deprive the people of their
property until their children will wake up homeless on the continent their
fathers conquered."
-
- The Jefferson quote means this: When you allow a private
banking cartel (the Federal Reserve) to wander from the Constitution, which
states that the Congress shall coin money and this money is to be no THING
but gold and silver (see Article I), this private banking cartel will put
out endless amounts of fiat money (money NOT backed by gold and silver
as stipulated in the Constitution) and lend it to their buddies (the corporations
that surround them) at ridiculously low interest rates (i.e., rates below
free-market rates), thus causing inflation (it now takes 100 pennies to
buy what 5 pennies used to buy) and this will allow, if not provoke, these
corporations to over-extend themselves with debt (i.e. become over-leveraged).
This excessive debt on the balance sheets of these corporations (and bank
corporations) will then make these publicly-traded entities less attractive
to investors.
-
- These entities will also be less attractive to investors
because of assets no one can easily evaluate (toxic assets) due to their
overly complex derivative nature (CDSs and CDOs). Thus investors will withdraw
their money (sell their stock) in these corporations (the corporations
that have grown up around the banks) and this massive sell-off will depress
the entire stock market causing a depression (deflation). Many of these
corporations will also go out of business or lay-off workers. Since many
people have their retirement funds invested in the stocks of these corporations,
they will lose this money as well as collateral and dividend income (be
deprived of their property).
-
- Since many of these people will (also) lose their jobs,
they will not be able to pay their bills (and debt service on a mortgage
is usually the largest bill), thus they will lose their homes (and thus
they will wake up homeless on the continent their fathers conquered, as
Jefferson stated). The conquered continent Jefferson refers to is America,
then under British rule. Great Brittan is the very country that practically
INVENTED fiat money and the very country Paul Warburg, prime architect
of the Federal Reserve System. So who has really conquered who?
-
- See FIAT EMPIRE at
- http://www.FiatEmpire
-
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