Watch this really short Youtube clip, or read the dialogue for those without speakers:

Swedish Chef, from the Riksbank: “Yum, yum, yum for the Chocolate! Good, good! Chocolate!” (stirs batter)

Swedish Chef: “… And now, the mousse! Moose, moose! Moo, the moose!!” (pulls a moose into the room, pets it)

Swedish Chef: “… And now, the chocolate and the moose!!” (splats some chocolate on the moose's nose)

Kermit, the Austrian Economist: “Wait a minute!! Enough!! Stop!!!”

Ever see something that is just complete nonsense? From the perspective of the Austrian economist, the below also qualifies.

The Swedish Krona (SEK) is one of the world's “top” currencies. Along with 5 other currencies, it defines the Dollar Index (see “The Money Matrix – What is a Dollar Bill Worth? (PART 2/15)“). Tomorrow, on July 8th, the Swedish central bank, the Riksbank will cut the deposit rate to -0.25%. That's not a misprint. Negative 0.25%. Our central planners, Bernanke, Geithner, Summers and Bair are probably looking on with jealousy.

A negative deposit rate means that for balances held by member banks at the Riksbank, they will lose money over time. The banks may then even charge their customers a negative rate for carrying a balance. This might make some sense, but the banks don't even have the money to start with!! Just like America's FED, the Swedes practice fractional reserve banking, which by its very nature is completely fraudulent – the banks have very little of the depositor's money, about 3-4% for the American banking system as I showed here “Off a Cliff with No Airbags: The FED Banking System Quivers in Fright“.

Why wouldn't a Swede, say with 20,000 SEK, just take out his money, covert it into paper, and rent a security box at the bank for 50 SEK? If he keeps his currency in electronic form, he will lose about 50 SEK for the year anyways!

The Kermit in me just wants to shout, “STOP, YOU IDIOTS!!!” This Keynesian stupidity has no apparent end.

Kermit's runner-up for stupidity is Government Sachs, of whom I gave a scathing review last week here “The Bubble Blowers: Goldman Sachs and Cap and Trade“. Sergey Aleynikov, a former employee of Goldman Sachs who worked on programming with dual US-Russian citizenship, was arrested at an airport last Friday per Bloomberg. Allegedly he placed GS's proprietary trading software on a German server where it may have been downloaded.

Now anyone who studies modern quant, bond or stock trading realizes the big investment firms just leverage up to their eyeballs and trade during milliseconds on the exchanges – anything to make a profit. While there is something very, very wrong with this as well – listen to Joe Saluzzi of Themis Trading here, I have no objections in principle if someone is able to write a program smart enough to make monster profits. Where I have a problem is what Assistant U.S. Attorney Joseph Facciponti said:

“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways. The copy in Germany is still out there, and we at this time do not know who else has access to it.”

Strange use of words, eh? That you would be able to “manipulate markets in unfair ways.” Does this mean that when Goldman Sachs used the program, they were manipulating the market in an unfair fashion? I innocently wonder, but I already know the answer. Keep your eyes peeled for “Unlocking the Money Matrix – The Summers Gold Price Suppression Scheme” which is already written and coming soon!

History repeats itself. The robber barons of the middle ages, and the robber barons of today.

The people bowing before the combination of bankers and politicians, bearing the sword of legislation. (Source, copyright expired)

The truth of the matter is that much of the world's population still live like Dark Age serfs under a medley of central bankers and planners, corporatocrats (new word), and a massive economic dead-weight, our politicians and our federal government. Try reading Howard Katz's “Why the FED is Depreciating the Currency.”

People, be wary, we are probably going to get hit pretty much by what GEAB N 36 calls “three rogue waves” – massive unemployment, many corporate bankruptcies, and then a dollar/pound/US Treasury crisis. They have been mostly correct in the past – the housing bubble, stock market crashes, performance of the USDX, etc. Look at how America had 11 of the world's Top 20 banks in 1999 by market capitalization. In 2009, we just have 3 of the Top 20 while the Chinese went from zero to 5.

HOSTEM INVENI ET INTERFICE. People, locate and destroy the enemy.

Jake Towne, the Champion of the Constitution

Note – Not sure what quant trading is? I am certainly no expert, but I now know enough to be considered 'armed and dangerous.' A free class in quant trading is available here. It's obviously self-taught.

Jake Towne is running for U.S. Congress in Pennsylvania's 15th District in the 2010 election as a citizen unaffiliated with any political parties. Jake also writes at www.LibertyMaven.com and www.CampaignForLiberty.com. A master campaign presentation for internet viewing is available. [Reach the Author Here!]

An interim campaign website is here while a dot com is being setup, due for release on July 15, 2009.

P.S. – The “Towne for Congress” Youtube Channel has just opened, you can view me give a speech on “Regaining Our Individual Rights” at the local July 3rd Tea Party rally here. Text is here

_______________________________________________________________________

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America. As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings of this article to your blog or anywhere else in order to promote the Restoration of our Republic. Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers. Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.

Summary of Articles and Bibliography for Jake Towne, the Champion of the Constitution (7/2/2009)

_______________________________________________________________________

Also by the Author

READ THE BILLS – An Open Letter to Congressman Dent from Jake Towne

Jake Towne on “Regaining Our Individual Rights”

Why Obama's Stimulus Plan Will Fail… and a Better Alternative (Feature Article for CampaignForLiberty.com)

Local Currency – A Real Stimulus Plan (Feature Article for CampaignForLiberty.com, please read the discussion section too, it was quite good!)

Gold and the “Average Man”

Ron Paul's rEVOLution Versus the “One Ring” of the Federal Reserve

Off a Cliff with No Airbags: The FED Banking System Quivers in Fright

Bernanke's Great Lie – The “Gold Standard” and the Great Depression (PART 2/2)

Silver and Gold ARE Money (PART 1/2)

R.I.P. – The London Gold Pool, 1961-1968

What Is Wealth?

Unlocking the Money Matrix – The Real Interest Rate (PART 12/15)

The Money Matrix – What the Heck Are Derivatives? (PART 10/15)

The Money Matrix – How the FED Works (PART 6/15)

MAYDAY! Jake Towne for US Congress, Pennsylvania 15th District