Geithner, Kneale and The Impending Credit Collapse

[celt67]

When things do eventually collapse...America's media should hang their heads in shame for not asking the right questions to the right people at the right time and aggressively pursueing the truth. A handful of top moneymen has both the Government and the Media by the balls.

[TruthCracker]

This guy has Cracked the Truth BIG TIME. Five stars from Truth Cracker. People, LISTEN! ITS YOUR MONEY!!! TAKE ACTION! I'd suggest ron paul / campain for liberty as a start.

Keep the truth alive.

[haxanthrobo]

Its amazing how these thieves at the fed and all their beneficiaries use doublespeak to confuse what could otherwise be understood by any 5 yr old.

the fed has got to go....

[AccuracyMarked]

Do you really have freedom of speech to talk about these things?

[jimjaas]

awesome video

[sungmee45]

FED want us to keep on paying them, yet when things goes wrong, we have to bail out...They are willing to save the dollar...Simple language, they have stolen our money, we continue to let them...Wake up people...we need to end the FED, put those guys in JAIL! And demand our money back!!!

[13Arrowsofwar13]

OK! Everyone, stick your head in the sand, like an ostrich, and pertend it's not there.

[cds162]

13Arrowsofwar13 and so many people do.. I find if i talk about this to friends/co-workers/family.... they think i am nuts..

So soon is all this going to collpase.. WE will be ready they won't... we can't help them it's almost to late

take care...

[kensho3]

Most people don't understand how central the fed is to every poisonous element on earth. Kill the Octopus and all the arms go with it.

[truthformeandyou]

Again, Karl, you offer "gloom and doom" and how wrong everyone else is, and that only you have the solution to the problem. But, Karl, you don't tell us the solution in specific terms. Why don't you commit yourself to a definite plan of action that can be measured over time. That way, we can see if you are dishing out good shit or bull shit.

[ClaptonPettyFan]

You don't get it. There is NO SOLUTION! The bank was robbed, the money is gone, and America is screwed. They are lying that it never happened. All I see Karl doing is pointing it out. He made it plain that a great depression now is better than no nation later.

CPF

[heckamuch]

I would say he is pretty clear about what his plans are. He wants people to support hr 1207 audit the fed.

[afsoldr]

This is the basic problem with fiat currency, it allows to much central manipulation, that will ultimately fail after an initial boom. A system built on credit rather than savings is always destine for failure.

[SirFelix377]

credit losses = gifts to bankers at taxpayers expense

[buzzz121]

The FED is DEAD! RIP you crooks!!!

[buzzz121]

Sounds like Loansharking at usurous rates. The difference is these bankers don't go to jail for it the loansharks do.

[redmolotail]

Your labor converted into interest paid is described as such in The Creature from Jekyll Island.

Making loans out of money that didn't exist in the first place (fractional reserve banking) is more than just dishonest - it's the control of the labor of the human race.

Ain't it funny that our Treasury Sec. Geithner used to be Pres of the Fed Res in NY?

No, it ain't funny. Anyone believing that the Powerz really care about us is in Candyland - and the candy is poisoned.

End the Fed!!

[amotisi8859]

FED is in trouble and in my opinion is VERY close to collapse. You can come up with all the conspiracy arguments but looking at it technically, it's a VERY poor run business and is damn close to loosing its authority in the states.

[victorwasright]

destroy the economy to save it....that's what auditing the fed will amount to. KD, this may have passed the point where honesty can avail us anything. what we're facing here is more like the bomb squad diffusing a device than a team of accountants reporting malfeasance to the public. there is a very real possibility that the feds will have to seize and STEAL trillions in private wealth, including yours, KD....if the alternative is a treasury default and economic armageddon.

hope i'm wrong.

[mrcool011]

If the Fed can print money, couldn't they take the loss, print up the difference and make it look ok?

[Annihilate3275]

turn your dollars into silver before it's too late.

[asphyxiafeeling]

Nice to see somebody other then Peter Schiff on YT telling it how it is!

[oc5nsli341nforce4]

A lot needs to change about the banking system and the gov. Getting rid of the fed along with the big banks the create most of the problems in the first place would be one step (more like a great leap) in the right direction.

[EndTheFedRes]

Yes, lets end the Fed!!!

[skybirdbird]

1207!!!  TKX

[1968wadsworth]

my ticker guy is great

[Mix7Studio]

This was well thought out and what people like beck, especially savage and jones need to watch and learn that this is how to be heard. One of my lifelong sayings has been, "if everyone is screaming and yelling and acting out, it's hard to determine who is in the right and who is in the wrong". Well planned statements actually help. It's like when we are talking about cost to Americans, they all need to break the numbers down into individual cost to show each person how it directly effect them.

[badonkadonk34]

Nice. Great Vid Karl. It was too funny seeing Geithner surounded by guys and girls in thier early 20s stuffed into suits. Looked more like a jobs convention for college seniors than a "town hall" meeting...

[AirelonTrading]

2:57 to 3:52 - is the absolute truth

I don't agree with Karl on everything (Especially the concept that "getting involved with government will improve anything, or that representatives will listen) - but those statements are the absolute truth.

[BlueEagle8]

Lending money at interest = Usury

Usury rates > 0 used to be illegal.

Originially "banks" were not setup to lend money. They were storage facilities or places to store your gold (wealth).

Banking in the form of lending was an original sin.

[pomnew]

Excellent analysis, thanks.

[josda1000]

karl, you're the man. greatest video i've ever seen from you in my opinion.

[grossleinbach]

thought the same. Clear, calm sentences with a straight to the point opinion

[livefree1789]

Well, it sure looks like a new reserve currency, the IMF SDR's, are coming at us fast. Hmmm, I wonder what percentage of the SDR basket the US$ will occupy? Whatever it is, a fall from the very top is going to hurt like hell. I suppose that means imports will skyrocket, while assets in the US - houses- will deflate due to no demand from a broke populace. Any $ people will have will be spent on basics like food & shelter. I predict lots of suicides when delusional people get smacked by reality.

[DrunkenPublicness]

"I predict lots of suicides when delusional people get smacked by reality."

And if "lots" means 30 million+, perhaps HR 3200 would be a little easier to swallow.

[NotACrookProductions]

One of your best yet Karl! 5 stars.

[crasster1]

Thanks Karl keep em coming!

You are doing my family a great service preparing for the crash.

[dddiegopan]

speculation is like gambling

agriculture of Hemp products is the only way to liberate us all from paper credit. We'll create so much wealth to fund trips to Mars every 10 years and enough wealth so every one can feed by them self.

Wars will end because if you dont fight agriculture there is no other reason to go to war.

All of them are to stop agriculture, a gift by god, so yes the devil is inside all of us, when we promote bombing village huts in the name of alcoholic drinks and cigarretes

[PhillipOrion]

KDenninger have you heard of birth certificate bonds being securities and having value?

[tj5555555]

money changers in the temple. where's the one that made a whip and drove them out over-turning their tables? Without a rightous population there will only be more money changers. Repent & grow rich. tj

[uclaztec2]

Kdenniger, your explaination is why I do not vote republican. Republicans tout "free market" but in reality have allowed wealth redistribution from the middle class to the wealthy. Don't believe me? Just look at the middle class when Reagan took office and look at it now. It's not a coincidence that our middle class is dying.

I know dems are guilty as well, but definately not to the level of the corporatists that are entrenched in the GOP.

[leongent]

First, according to CNN, insiders are now selling. Second, we have to ask ourselves what value GS adds in facilitating transactions between lenders and investors. Acting as a filter to reduce risk has value, certainly, but acting as a filter to obscure risk is a problem. As Karl says, ~that~ is theft. It will not stop on its own accord, and government won't stop it as government has been co-opted. There is only one way to stop it, and that is to stop participating in the game.

[debtruth1]

Agreed! Great post......

[Danster82]

the face to face transaction you talk about is not impractical, in fact its already being built, currently only used as a charity tool but from what I can tell its actualy the foundation for the future financing system and that system is internet based microloaning from person to person

like kiva

In this type of system the banks role as money lenders is greatly diminished and credit is not created in order to make a loan, other peoples savings are used as loans meaning it already has value

[Danster82]

It should be self evident that banks dont create any real wealth.

So its basic usury but its even worse than that because the risk in your example doesnt exist for because the credit loaned is created by accounting in fractional reserve banking.

Consider also the majority of GDP is financial sector earnings, what they earnt was leeched through the real economy so what does that say about the GDP...

To simplify they start with nothing and end with your house. <-- (did you see that?)

[BennyBanksterBoy]

I think separation of state and "education" is the only way to remedy this. Public indoctrination just pacifies peoples tendencies to be logically critical, politically wary & vigilant.

There is such a cosy overtly obvious & legally illegitimate predatory social arrangement productive people essentially unquestioningly pledge voluntary servitude to thanks to scum like Kneale.

[rexoid]

Good vid..thanks

[cba2004]

Very nice and interesting videos, thank you. To me it is very strange what was happening in the last days on the stock markets. Is everything going up, all togheter: gold, silver, stocks. The only thing is not going in relation with the stock is the oil. Very, very strage behiviour of the markets. What do you think about it, it is prehaps the quiet before the storm, have you time to explain your view about this in an answer or ar video?

[becauseicare2]

Error number one, you used the word "responsible". Only the consumer/taxpayer is being held responsible. Error number two. You said if you don't understand banking you need to go back to school..a place that does not teach such things. Thanks for the video Karl.

[pieater53]

Thanks Karl for keeping us informed with the real numbers.

[0PsycoDad0]

How about this?

The "crisis" ends for a few months during which the comodity bubble and the emmisions trades (another funny derivates round) become the "driver" of economic growth i.e. the parking lot for speculative money. Then they´ll agree on huge write offs on comercial real estate via salami tactis and the system is saved! Inflation is shored up for a while and until the average citizen realizes this another issue of "national importance" has showed up.

[mlndstream]

Nice Job:)

[justjacqueline2004]

Karl yet another thought provoking commentary.We have been watching you here in the UK,the technique of interviewing ascribed to Mr Geithner comes from Gerry Adams-nice export!We here in the UK are on skid row,yet our government again steps up and is the biggest buyer of US treasuries followed by Japan.Where is this money coming from-swaps anyone?How long can this go on?Where do I put my paltry money to hide it from these scumbags?Thanks again Karl.

[jpr12345678]

same as always Great vid!!

[theserf3]

You know what freaked me out when I found out they had to make a law against ChemTrailing!!!! Yes an actual bill!!! Or law whatever you call them.

Thought it was a crazy conspiracy theory but it held some water because it is now against the law.. interesting. We have been slowly poisoned from birth hence why the push for government health care. Just another tax basically.

[theserf3]

Yea totally wrong post. I was watching FDA GMO food thing here watch?v=ubl4tYuoygo..

This video was good as well..

[cpswyl2]

Thanks Karl

[DavidAKZ]

thank you

[InTheSticks1881]

Thank you.

[Signzit]

Are you telling me, that you believe; banks actually loan their depositors money, to borrowers?

You know the Banks are only licensed AGENTS and have no power to create capital- as capital is labor and they do no actual work or labor & thus have none.

Since we operate on the, "good faith and credit of the American People" where do the banks get their money to loan, if those funds can not come from their deposit accounts? Why are you the Authorized Representative on you own bank draft? Think!

[soylentgreenb]

Absent whatever fraudulent schemes the big banks have going with dumping toxic assets on the fed, of course.

The bank takes deposits, keeps a small fraction and loans out the rest. The lender spends it, the recipient puts it back into the bank as new deposits that can be lent out again.

After the cycle is complete at 10% reserves the bank has $1000 it owes at a low interest rate to depositors, $900 it is owed by lenders and $100 reserves.

[hiphopsocnroc]

U.S.C 18 prohibits the banks from loaning out the deposits of it's depositors.

So how does the banks loan out "money"?

Well, they don't. Better question, how is "money" created? What do the banks need from you more than anything? Your signature. They use your credit and loan you nothing.

It is far more complex than just that, but that is the nuts and bolts. Peace

[Signzit]

read the manual, "Modern Money Mechanics". it's a procedures manual from the Chicago Federal Reserve branch. it's a pdf file & explains your missing pieces

also, the court testimony/affidavit of Todd F. Walker given in BANK ONE V. HARSHAVARDHAN

Mr. Walker- "For 20 years, I worked as an attorney and legal officer for the legal departments of the Federal Reserve Banks of New York & Cleveland, as the Federal Reserve Systems recognized expert on the legal history of central banking"

A must read!

[hiphopsocnroc]

Yup, good sources of info, I've read both awhile back.

Were did you pick up this info? We might already have the same source.

[Signzit]

the word is seeping out. Todd F. Walker's Affidavit in the Bank One case & Modern Money Mechanics are required reading for anyone that wants to understand banking, commerce. Material sources are numerous now, not like years ago; truth in commerce is leaking out.

It's this simple; the debt creation model (Banking) is killing the dual entry bookkeeping; so Creditors will have to Forgive/Set-off/Discharge this debt as the Original Issuer or the Damaged Party in the Bankruptcy. Think Receivership

[hiphopsocnroc]

Are not all bills asking you to set-off/discharge the debt? Why do they send us remittance slips? Are they not asking us for permission to use the asset side of our account? Then we give them more liability funds. Are FRN's and lawful "money" not one in the same? Unless we order tell them it is lawful money to be deposited for credit on account, they use them as FRN's furthering the burden of the US government. Think Usufruct.

[Signzit]

Some of many; Winston Strout, Brandon Alexander, jack Smith, Tim Turner, Sam Kennedy, Patric Devine the list goes on & on... many now also, in the UK/Crown lands, Canada even New Zealand. The Matrix you spoke of, is shattering & many, are complicit.

As a Secured Party Creditor to the bankruptcy, we must come together to fore give ;) this debt & remove the monopoly held by the money changers.

Money of Exchange Vs. Money of Account; you would think, these, investor types would clue-in?

DTC?

[hiphopsocnroc]

Thought we had the same source. Good to see a fellow creditor spreading some "entertainment" as Bradon puts it, haha.

[hiphopsocnroc]

Amen, someone who has broken free of the matrix, but the rabbit hole goes further then just that.

What do the "banks" need most from you? Is it not your signature? Who actually loans who what? Are you not authorizing your "credit" to be drawn? From where you might ask. Well, from the Fed itself. Do you not have a "person/bank/corporation" evidence by you certificate of live birth? Why is printed on bank note paper? Some questions to think about. Peace

[Azbx23]

The more I watch/read you, the more sense everything makes and the angrier I get.

[chena3]

DXY

76.61

the sky is falling

the sky is falling

new low for year ..

secure your capital people

take care

[Paolo7219]

There's one more thing to consider. If I need to borrow $40 bucks, in an honest banking system, I can shop for a loan rate. You might charge me $11 bucks to loan me money, but maybe another honest bank may charge me only $9 bucks. This is how the free market decides interest rates, NOT how the Fed sets interest rates. Maybe this is self evident, but some don't seem to get it.

[GoldenFireReviews]

You're my ticker guy and I thank you for telling me the truth!

[3dbeing]

it's usury, plain and simple, which would be illegal if an individual did it...

[dx11101]

The Fed is working overtime to stop the rapid price declines. They are attempting to expand the money supply near the rate that credit and select asset prices are falling. However, it is very likely they will over-shoot their target by a quadrillion miles.

With interest soo low people will sell their bonds and use their savings and the appearance of inflation thru rising prices is soon the follow.

[Lexi8888]

Thanks for watching Geithner so I don't have to....BTW, same goes for "green shoots" Kudlow & Kneale. Too much BS with no accountability.

[1fourall]

The problem is you don't really follow the money as it truly moves. You say it goes into goldman sachs pocket or to the hamptons, new yachts....

unless yacht, hampton, or goldman sachs money doesn't continue to circulate as money certainly does your example is pretty much mute.

[cowboycarl04]

If I had a choice, I'd take the deflationary collapse 100 times out of 100, as opposed to a high inflation one.

Those that are debt free and were responsible... bam we are now much better off because of it.

Am I understanding these concepts correctly?

While I think deflation is showing, I think our government and the banks will stop at nothing, and their actions will trigger a high inflation environment.... we'll see I guess... thanks for the videos from one Carl to Another Karl!

[RodneyHampton]

Inflation benefits the banks and corporations closest to the newly created liquidity. They can use the monopoly money to buy up real assets.

You are correct that a person who is gainfully employed with no debt would benefit from deflation. If, however, you have a loan -- even at a fixed rate -- you are now paying it back with dollars that have a higher purchasing power than you bargained for. Also wages could reset lower hurting you if you have fixed obligations. My 0.02.

[Unkn0wnGuy]

I think you're right cowboy, but on the flip side, if you're in debt, an inflationary environment will benefit people who have debt.

My friend and I are playing each side of the coin. I just bought into a lot of real estate on the cheap, thinking we will see inflation, whereas my friend sold everything and is now debt free. Both of us have been buying precious metals.

So who knows? Maybe my gamble will pay off and maybe it won't. The good thing is that my properties cash flow nicely.

[hiphopsocnroc]

How does an inflationary state help people who have debt? You would think that would be the opposite.

BTW, good move on the precious metals.

[Unkn0wnGuy]

It helps because there are more dollars chasing the same amount of goods in the economy. Take a look at some examples of how hyperinflation affects a country (weimar germany or zimbabwe). I'm not suggesting that we will experience something like that, but this is the first time in the history of the world where virtually all central banks are pumping money into the system, and I strongly believe that there has to be consequences to that. I could be wrong, but I'm hedged against that.

[DavidAKZ]

Apparently - of there was no debt, there would be no money ! See' Money as Debt' I & II

[skyding8962]

Great Video. I subscribed yesterday and your video was awesome yesterday and today.

[winbri5]

Thanks for keeping us enlightened!

[LisaJ4Liberty]

Wow, I can't believe Kneale said that. He really is a bag-a-barf, isn't he?

[meikagirl]

Strengthen the Dollar-Crash this Market! That's our only hope!

[beltane3]

grrr..Via the fractional reserve system,banks can loan out around 10 times their reserves [deposits,e.g.].If a bank lent that $ 40 it lent something it created out of thin air! I'm the depositor,I still had access to my $40.Loans create money-when a loan is repaid the only way to account for this on the bank income statement is as income.This has gone on for decades,they slowly gain more and more a % of purchasing power in our economy.Now they're calling in the loans while stealing your assets!

[soylentgreenb]

That's patently false. You think banks are warehouses for dollars, they are not and just about everyone knows they are not. You don't really have dollars in that bank account, you're lending money to the bank.

What the bank does is connect borrowers and lenders, keeps a little bit in reserves to guard against credit losses and impose a fee(lending is at a higher interest rate than you get for your CD).

[soylentgreenb]

There is money created here but not in any the way you seem to think.

If your buddy owes you $10 for beer and writes you an IOU, you can now use that IOU as money if anyone is willing to accept it.

When you pay with a cheque the bank is that buddy who owes you a couple of beers and the check is the IOU. Congratulations, you and the cashier just monetized bank debt.

[Signzit]

read the pdf's i suggest then come talk to me please.

[mistapikkles]

Bernake about to make another 700 billion dollar withdrawal from the stock market soon...

[DavidAKZ]

reference ?

[mistapikkles]

the voices in my head.. :)

The fed yanked the liquidity for the market a few days before the big Sept/Oct decline.

[DavidAKZ]

reference ?

[centervilletn]

i began watching your videos a year ago.....the collapse is coming...and quick...thanks for the vids

[kosai19]

It seems more likely to me that we'll have another deflationary rally in the dollar. Robert Prechter has been making some good videos on the topic. Check out his most recent interviews on Bloomberg and CNBC. He makes a strong argument that the dollar is more likely to rally. After this rally ends the hyperinflation scenario should play out.

[cowboycarl04]

I won't disagree, but the dollar has been tanking for a while now and continues to tank. I just don't know what would cause it to shift again... more bank collapses?

[kosai19]

Continuing... It's this massive de-leveraging that support a dollar rally. I have a lot of reasons for this.

#1 If you study the charts, almost every single US dollar chart shows a large move coming. AUD/USD, NZD/USD, Gold, USD/CHF etc...

#2 The number of bears in the US dollar index is at a record level of 97%. When this number goes above 90% reversals are common. For instance there were 90%+ bears when the deflationary rally happened and 90%+ at the high of 89.6 before the fall to 77.

[mrzack888]

why would the dollar rally? the only way is another equity market stock collapse. or really high interest rates, which is unlikely. or very likely, high interest rates causing more derivatives crash which causes margin calls on stocks to crash, and flight back to dollar safety....interesting.

[kosai19]

There are a long list of reasons that I couldn't fit into 500 words. Essentially the previous dollar rally took a lot of people by surprise because it wasn't based on the strength of the US economy but entirely on deflation as credit contracted. Yes, the economy is very weak and going to get weaker but as this happens a severe credit contraction will also happen as the hidden toxic assets get revealed and many more banks fail. When that happens they will de-lever their 20X leverage. Etc...

[chipleyfla]

Karl, Great second half. Keep up the pressure. I forward you work to dozens of clients each day.

[bubonick23]

Please share the graph.

[tyronebiggums3]

Holy Crap!

I'm convinced.. it's time to load up on gold and silver, again!!!

[pinkfleuds]

Brother .. Love reading your stuff , keep up the good fight . You have actually enlightend me to how much TSHTF has happend . Peace

[boots920]

The US dollar 's value ???

I guess this is why the Chinese government it telling their citizens to buy as much gold and silver as possible.

What a mess I'm just wondering if the US Fed Note is going to be around doesn't look like it.

[swizzlecheeks]

Piss on the Audit....End the Fed!!!!!!!

[myeyepie]

The audit of the Fed will provide the moral outrage necessary to drive the "End the Fed" move. Thats the goal.

[1mealperday]

hi . glad to see an honest face. Rare now adays. Thanks

USD @ 76.68 8:19 pacific time

[Hopefl1]

It is slipping. Watch out for another attack somewhere soon.

[DavidAKZ]

shouldn't we be shorting US bonds ?

[451andFreedom]

First

[glassman1313]

That don't work around here.

[OhioJon7]

thanks