Peace of Mind News

I said a few weeks ago that the recent shootings, the excitement about the Olympics, and all of the other loud stories are designed to distract us from the financial news.

The financial situation doesn’t produce the adrenaline of a sudden catastrophic event because it is slow. It evolves rather than explodes so most people don’t maintain interest.

In addition, we have heard so many stories about the imminent collapse of the system that we discount them. Like the villagers that grew tired of the little boy who “cried wolf,” we believe there is no wolf. Therefore, we do not recognize it when it actually appears.

At the risk of being like the boy in Aesop’s Fable, it is time for an update about the financial situation.

For those who think this is a false alarm, I remind you that people who have lots of debt-based wealth are doing everything they can to maintain the current system. This makes it appear as if the current financial system can go on forever as those attempting to control it postpone payments and come up with creative measures of increasing debt.

In spite of their best efforts, there are an increasing number of signs, even from mainstream media, that now is not a good time to participate in any traditional banking and investment strategies.

This story, built around a CNBC report, says the old system is going to be put into a coma.

The purpose of a coma is to force the body to rest so it can recover. It is usually brought on by traumatic circumstances.

There is lots of trauma.

This report says that one in three Americans are now receiving federal welfare.

If we consider the number of people who work for government including the military, postal service, law enforcement, educational institutions, and the various departments at the federal, state, and local levels, we see that more than half and possibly two out of three people in the United States receive their living from the government feedbag.

That means the rest of us are supporting those people.

And, if we don’t provide this support willingly, it may be taken through the banking and investment industry.

Recent legal decisions have said it is not a crime for banks and brokerage houses, which are supposed to keep their banking and investment funds separate, to co-mingle these funds. Furthermore, if a financial institution is short on operating capital, it is OK for it to use customer deposits to pay those bills. These links have the details.

Warning: Get Your Money Out

Now Banks Can Legally Steal Retirement Accounts

To be clear, this can’t be done as a general practice. However, if an institution does this because it is in dire straits and about to go bankrupt, the courts have chosen to look the other way.

I’m not the only one who sees the failed logic of this situation. Take two minutes and listen to the first half of this video from Bloomberg TV as two experts discuss the euro and what must happen because of the “math.”

Did you catch what they said?

Either the currency must collapse or it must be exchanged for a new one.

This isn’t just about the euro. The article and related video linked here explain why the US government can’t balance the budget.

In addition, once the first penny of interest is charged on the debt, there is more outstanding debt than there is money in circulation. Therefore, the debt created by United States dollars can never be repaid.

As the trauma escalates, the distractions continue.

I will write about the newest ones in tomorrow’s article.