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Dan · Joined: Dec 31, 1969 Posts: 208 Location: USA

First the economic and legal implications of Italy seizing $134 billion of $500 million each US bearer bonds on June 8, 2009 that were not declared crossing the border:

1. These bearer bonds had to be a 'called in repayment' on a sovereign off the books = illegal debt.

2. Japan(couriers were Japanese) has savings and more borrowing power than most, so it was not fear of Japanese becoming deadbeats that called the loan; ergo, some country needed collateral = money fast.

3. The original borrower was the US, they issued the bearer bonds.

4. The Italian government is required by constitution to charge 1/3rd for monies not declared. It is a felony not to do so, for all kinds of good obvious reasons. Among them, making it discretionary to not collect the 1/3rd from some, would create a tempting opportunity for officials involved in finding the monies at all levels, to take bribes.

5. The Italian courts must become involved = indeterminate time length, but probably months?, and then who gets the bonds? Prickly issues are they not?

6. Thus $141 billion in US Bonds are out of circulation for awhile, and then how will Italy be paid its share = $41 billion?

7. Meanwhile, the caller can not meet the cash/collateral need that caused them to demand the $134 billion be repaid.

8. Thus someone else does not get the $134 billion, which in turn, means another someone elses bills are not paid and so on and on.

9. That is a instant direct reduction of the worldwide High Powered Monetary Base = enormously contractionary immediately.

10. Result, a rapid worsening of present depression.

11. A most well deserved lesson. The worldwide little guy(99%) population(voters) hopefully realizes the cost of letting political leaders get away with breaking our laws.

We live in a conserved universe, luckily with a little slippage in it. All we need is a little unit of time to cover the checks; but they must be covered, or the lenders always pay in the end = all of us. We must borrow and lend to stay alive.

Conclusions: I will stick to the US government, but these comments apply to all governments involved.

Unless you can demonstrate these US bearer bonds were authorized by Congress; they were issued feloniously. That can only mean our public debt is much larger than we know.

How much bigger, to who, and on what terms?
Who issued this illegal debt?
What did they gain from it personally and politically?

By inspection, once these 'bearer bonds' are physically destroyed, you instantly destroy that much of your "known only to central banks" monetary base. At least 10 or could it be 20 or more to one in loans issued against these 'bearer bonds' pieces of 'collateral'. They can not be used for repayment now = no collateral is there?

You 3MS leaders are criminals and think only of yourselves. That makes you stupid.

You remind me of the steps the Sumerians used in discovering writing.
1. They created little statues to represent amounts of grain, sheep, jars of wine, etc that were kept in storage. They did this for some time.
2. Next, they used clay envelopes to keep these inventory statues collected in one place.
3. They broke these envelopes open for many years to see the statues inside.
4. Then someone made marks on outside of envelopes to represent statues inside. They no longer had to break envelopes to know what statues were inside.
5. It took a hundred years for someone to figure out you no longer needed to use the redundant statues inside the envelopes, and we had writing on a piece of 'paper'.

Our ignorant leaders think we need statues = bearer bonds to settle monetary base loans. NO WE DON'T! All we need is a Honestly enforced reserve requirements for banks based upon 'mark to market' prices for collateral. And above all, anyone can go bankrupt every seven years without penalty, so lenders can be held accountable for making unwise loans.

Thus we disperse the risk of bad loans across literally billions of lenders on our planet.

Finally, we must prosecute those leaders who were involved in making/taking these illegal loans of the peoples monies, so this catastrophic financial collapse can never happen again.

Last, enforcing accountability upon leaders is required for our long term survival as a civilized society.