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Obama’s Imperial Gay Parade Usurps God & SCOTUS

February 24th, 2011 by


Obama’s Imperial Gay Parade Usurps God & SCOTUS

By David A. McElroy

Feb. 23,2011


His hubris knows no bounds as he continues to usurp authority seeking to rule us all as Emperor. Presumed President Barack Obama has decreed the Defense of Marriage Act Congress enacted is “unconstitutional”. This is one more case of this undocumented worker thumbing his nose at the law! Even God’s law.
He ordered lackey-in-law, Attorney General Eric Holder, to cease and desist upholding that law. The New York Times Feb. 23, 2011 headline declares “Justice Dept. to Stop Defending Federal Law on Gay Marriage.” Obama’s loud gay, lesbian, bi-sexual and transgendered constituency applauded the move against the heterosexual monogamous marriage standard Congress had made federal law in 1996.
This was reported in The Washington Post, The New York Times, and elsewhere. This is a bold challenge to the Supreme Court of The United States, as Obama has taken upon himself the authority to rule laws unconstitutional, an authority delegated ultimately and constitutionally to SCOTUS (or the states’ nullification as parties of origin). His order to the US Justice Department that the Defense of Marriage Act not be defended or upheld is subversive insubordination, a willful dereliction of constitutional duty.
Holder wrote in his letter to Congress that “…the department has declined to defend a statute in cases, like this one, where the president has concluded that the statute is unconstitutional,” according to the Daily Caller. But White House Press Secretary Jay Carney seemed to be offering damage control, as the Daily Caller reported him stating that enforcement of the DOMA would continue while Holder seeks a verdict.
You may recall Obama refused to cease imposing his mandatory nationalized health care plan after Federal Court Judge Roger Vinson had ruled the plan unconstitutional Jan. 31, 2011. The ruling specified the court expected compliance without the formality of an injunction. Obama thumbed his nose at the court, and declared the mandatory program would be implemented anyway, as he did when Federal Judge Henry Hudson had ruled against mandatory purchase of health care in December, 2010.
Of course, Obama has long refused to defend our border with Mexico against hordes of illegal aliens, hobbling our US Border Patrol officers and prohibiting upholding federal immigration laws. He has gone so far as to sue Arizona for daring to uphold the laws it was specifically permitted by those laws to do, and even preferred human rights charges against the state in the United Nations! The US Constitution requires the US President to defend these states of the Union, yet Obama plants BLM signs along Arizona highways warning the public not to enter public lands due to the dangerous Mexicans engaged in drug running, gun smuggling, auto theft, and “coyotes” trafficking humans! Cartels have even posted bounties on Arizona sheriffs!
Obama repeatedly demonstrates a reckless disregard for federal law, Congress and the Courts, not to mention the vast majority of Americans holding traditional values. His regal proclivity for unbounded power is a stark violation of the Constitution’s Separation of Powers, Checks and Balances, Duties of Office, and the basic American concept that no person is above the law. But, of course, the Patriot Act, Executive Orders, “plenary powers” and such as “signing notes” have elevated the Oval Office to imperial status with authority to execute people simply on the president’s command. Why is this man not impeached, tried for treason, high crimes and misdemeanors?
In his books, Obama openly espouses Marxism, a philosophy entirely contrary to his Oath of Office and destructive of America. His choice of cabinet officers, “czars”, and other appointees demonstrate a commitment to a socialist revolution in America with no regard for our laws or traditional values! Why does he hide all records of his history?

In repudiating the Defense of Marriage Act, the celebrated black man in the White House is also usurping moral authority. In challenging the court system, Holder wrote he seeks a “definitive verdict against the law’s constitutionality” because the DOMA “contains numerous expressions reflecting moral disapproval of gays and lesbians and their intimate and family relationships – precisely the kind of stereotype-based thinking and animus the Equal Protection Clause is designed to guard against,” The Washington Post reported.
America had long held a certain standard of morality, one that was defined by the Faith Of Our Fathers. It was based on the ancient Holy Bible, and the Christ it revealed to us. Obama and his “progressives” are “Hell-bent for leather” to overturn that standard. He cancelled the traditional National Day of Prayer long celebrated by Christians, but saw fit to host an Islamic prayer meeting in which he prostrated himself before Allah. Which is funny, because if I remember correctly, Allah does not approve of homosexuality either. In short, it appears Obama has no moral standard but the predators‘ “Law of the Jungle”.
General George Washington, commanding the Continental Army against the British, initiated the long held military ban on homosexuality in the armed forces. He, “the Father of Our Country”, stated that “While we are zealously performing the duties of good citizens and soldiers, we certainly ought not be inattentive to the higher duties of religion. To the distinguished character of Patriot, it should be our highest glory to add the more distinguished character of Christian.” The Writings of Washington p. 342-343
Obama has been militant in promoting the sodomite cause in the military ranks, despite many officers and enlisted men opposing it for reasons of morale and military efficacy. Military chaplains have been barred from praying in Christ’s name in performing their duties, despite the First Amendment and their official church tenets, and forbidden to speak against homosexuality as a sin God regards as an “abomination”.
Of the 56 men who signed the Declaration of Independence, 24 held seminary or Bible school degrees. Many served as pastors and leaders of Bible societies. One of the first acts of Congress was to appropriate money to print and distribute the Holy Bible. But Obama likes to crow “America is not a Christian nation.” He is anti-Christ, known to have all symbols of Christ hidden from view in his public venues, even at Notre Dame!
John Adams, in 1813, said “The general principles on which the fathers achieved independence were… the general principles of Christianity,” in a letter to Thomas Jefferson. On July 24, 1821, Adams, 2nd president, said “The highest glory of the American Revolution was this: It connected in one indissoluble bond the principles of civil government with the principles of Christianity.” Obama ignores the founders.
Thomas Jefferson, 3rd president, opened federal buildings, including the US Capitol, to Sunday church services, and has often been smeared as a Deist. But Jefferson did not believe, as Deists do, that God never intervenes in the affairs of men. He said “And can the liberties of a nation be thought secure when we have removed their only firm basis, a conviction in the minds of the people that those liberties are of the gift of God? That they are not to be violated but with His wrath? Indeed, I tremble for my country when I reflect that God is just; that His justice cannot sleep forever; that a revolution of the wheel of fortune, a change of situation, is among possible events; that it may become probable by Supernatural influence!” Notes on the State of Virginia, Query XVIII p.237
Jefferson declared “I am a real Christian, that is to say, a disciple of the doctrines of Jesus.” In an 1813 letter to William Conley, Jefferson said “Of all systems of morality ancient or modern, which have come under my observation, none appear to be so pure as that of Jesus.” This is the system of morality Obama seeks to bury in Marxist dogma.
The first signer of the Declaration of Independence, John Hancock, reminded us that “Resistance to tyranny becomes the Christian and social duty of each individual… continue steadfast and, with a proper sense of your dependence on God, nobly defend those rights which heaven gave, and no man ought to take from us.” History of the United States of America, Vol. II, p. 229
Marriage is an ordinance of God that began with Adam and Eve, a matter for the church, and not the state. God defines morality and marriage. For the state to usurp the role of God only leads to peril. King Uzziah of ancient Israel was struck with leprosy instantly upon usurping religious authority in the Temple. II Chron. 26:16-23 Egypt’s Pharaohs and Roman Caesars claimed divinity, yet bled and died. Obama would do well to remember he too is subject to the laws of nature and nature’s God. I don’t think He is pleased with Obama’s Hope and Change. How say you, jurors of America?

Scope Broadened as Minds Narrowed-Focus Lost

February 20th, 2011 by



Feb. 20, 2011

By David A. McElroy 

“In the land of the blind, the one-eyed man is king,” an old adage says. What is your scope of vision?  Are you truly keeping watch… or just enjoying the programming? It is said “There are none so blind as those who will not see.” Oh, say, can you see?

Let’s consider the subject of how our scope of vision has been purposely broadened to narrow our minds. It is a matter of inundating our consciousness with global floods of news and entertainment, lots of corporate and government propaganda to shape us, indoctrinate us in ignorance, to depress, overwhelm and disempower us, lead us into New World Order serfdom like sheep to shearing and slaughter. They want us to feel small, helpless, afraid.

This sets us up to hear Uncle Sam screaming “Quick, look over here!”, while he grabs your purse! It is management by crisis, the herd is driven by howling wolves to the ambush as others are lay in wait. We need to stand our ground, or as Christ said, “Occupy till I come.” Luke 19:13  The good steward does not flee when the wolf appears at the door, he kills the wolf!

To be aware of the process is the first step in liberating yourself and reclaiming your inherent power of self-determination as a free soul. As Christ said, “You shall know the truth, and the truth shall make you free.” John 8:32 Truth is the path to remedial action and liberty. Falsehoods never provide a foundation for wholesome healthy progress. You never will get whole truth from any “official sources” or corporate mainstream media. Falsehoods only lead to exploitation, hide perpetrators! Question authority!

In the ages before mass media, people obtained news very slowly by word of mouth, personal letters, church and town meetings or town criers. Travelers were most often the conveyors of current news. Much news traveled slowly on horseback or boat in perilous journeys that sometimes took months to complete. Now, technology makes even trivial interpersonal communications instant and global, leading to revolutionary developments. Top-down communication from “on high” is challenged by massive volumes of cross-talk among us below, which the corporatists loathe because it confronts their lies. They fear exposure of their crimes and losing control of our public discourse. They work to isolate us with envy and fear. They fear us standing together as brothers and sisters against evil.

This fear drives elitists to respond like Egypt’s old dictator, Mubarak, who shut down cell phone and internet services amid recent massive protests. Largely peaceful protests by hundreds of thousands of people boldly interacting in leaderless resistance drove Mubarak from power, despite some violent secret police provocateurs.

Let’s look to the early days of agrarian society, when most people were farmers, sharecroppers, and homesteaders, and even most city folk had a vegetable garden and a few chickens and/or a milk goat. They were often self-sufficient in the bare essentials of life, enjoying the bounties of the land. They needed money far less than we do, as they bought far less store-bought goods and were producers of many needed items. Making many things from scratch was commonplace, even a source of pride in exercising mind, body and soul in analytical and creative efforts highly productive in meeting daily needs independently.

Robber barons plotted how to remove the people from the land, their source of independent sustenance. The fat cat industrialists, like Rockefeller, Morgan, Rothschild, etc. sought to debase the “hayseeds” and “cowboys”, lure them into the big cities in pursuit of the modern lifestyle of mass-produced factory goods, cities where consumers would become increasingly dependent upon, and indebted to, an artificial matrix shaped by big bankers. They bankrupted and foreclosed upon farmers and ranchers with joy. Monetizing debt in a deceitful fractional banking system would reduce free people to wage slaves in a nation ruled by corporate law and not common law based on God’s Ten Commandments. As cheese draws mice to a trap, advertised “fashionable” lifestyles lured folks to their enslavement in the trendy modern society!

Read Red Republicans and Lincoln’s Marxists in the Civil War by Walter D. Kennedy and Al Benson to see how Marxists infiltrated Lincoln‘s administration. They seized control of Harvard’s School of Law, took public education with such as Dewey, and Bernays led Madison Avenue in commercial propaganda. They changed the structure of federal law, made these united states an imperial corporate United States of America. The Federal Reserve Bank’s ungodly system of usury was given control of America’s economy late Christmas Eve 1913, the same year states lost control of the US Senate established constitutionally to represent them.

During the American Revolution and into the 20th Century, there were many small independent news publishers. But the oligarchs felt the need to control the presses and shape public opinion. They made a campaign of purchasing all of them to bring them under centralized control. The New York Times came to be the flagship of newspapers, signaling fleets of mastheads with Eastern Establishment propaganda. Wall Street was firmly, deceitfully in charge.

Then radio came along, and they bought up the broadcasters and formed NBC and CBS, etc. Americans gathered around the miracle of radio to hear their president speak from Washington D.C. in real time. Hollywood made big inroads on people‘s thoughts, and government found Movietone News a great venue for propaganda. When television went public, it’s ownership was already planned and limited by the Federal Communications Commission, a vassal of oligarchs. They foresaw the dominant impact television would have on impressionable minds, and how someone like Walter Cronkite would become “the most trusted man in America”. The networks were orchestrated to “guide” us.

I once almost established a television station, and despite strong local support from a community lacking local television, was thwarted. The “big boys” made it clear my effort was not going to be permitted regardless of what the law or the community said, and if I wanted to stay alive, I should get out of town. Police and lawyers were no help. I left with barely more than the shirt on my back!

Look back to those early American peoples’ scope of vision. Their immediate needs in their local environments occupied their minds. They were thinking of the weather, their crops, the harvest, milking cows and butchering hogs, collecting eggs from the henhouse. They had to care for their horses daily and providing for their households was labor intensive, with lots of planning, plowing, digging, chopping, cutting, picking, plucking, cleaning, cooking, tanning, weaving, knitting, sewing, building, etc. They exercised mind, body, and soul in a land of plenty for the industrious. These agrarian people seldom got news from outside their local area. Most education was obtained working with parents and grandparents, and immediately relevant to self-sufficiency and family life. Christian morality was often the basis of schooling, as The New England Primer was the ubiquitous textbook next to the Holy Bible. Formally, early America’s leaders often had no more than an 8th grade education inside a one-room schoolhouse, yet were often better educated than many college freshmen today.

News was often months old by the time it reached remote ranch houses, mining camps and trappers’ cabins. Outside distractions were few and infrequent, people learned to be wary and think for themselves. They kept guns ready, alert to danger.

In short, the old agrarian society individuals generally had a narrow scope of vision focused on the area around their feet. Much broad education was largely passed down thru generations working together in fields and forests, shops, barns and kitchens. They lacked much formal schooling, but knew how to do almost everything to provide for themselves from scratch. Their moral and social views were shaped in local churches and they enjoyed the barn dances and quilting bees in very interpersonal ways. They knew and respected their neighbors a mile away, helped them in times of need in Christian charity. They would labor for days under the sun to harvest a crop for a fallen neighbor, or rebuild a barn lost to fire. Dangerous criminals would be tracked down by posse. Strong families, churches and neighbors made for social security, not tax dollars or corporate insurance schemes.

Today, apartment dwellers and suburbanites don’t know the names of their neighbors, or care. If they see a bleeding body on the street, often they will avert their eyes and hurry by without even calling 911. Sense of human community is lacking. Families are becoming increasingly dysfunctional and broken, even perverted. Chivalry is gone, many men effeminate. People just want a private space to escape with their favorite entertainment. Their social inputs are largely electronic and vicarious rather than fulfilling interpersonal relationships. Hedonism is in, and aggressive rudeness a competitive sport. Porn has gone far beyond exposing the beauty of human forms to images of disgusting degrading perversions and flows freely into our homes. I am sorry at just having seen some ads for these horrid things. If that’s the free advertising, I hate to think what people pay for. Pop icons are often depraved, like Charlie Sheen or Lady Gaga. Celebrity whores, gangster rap and paganism flourish openly. Society rots.

Today, much of what passes for education in the “public fool system” is irrelevant to the practical matters of life. Spelling and geography are no longer taught. Schools “teach to the test”, and after the tests, the trivia is forgotten and seldom has any application, like algebra. The modern student is trained to be “politically correct” and chase the debased dollar in a narrow field of specialized knowledge, given a broad globalist scope of vision obscuring the information relevant to living independently. Today’s youth are daily bedazzled by big screen special effects replete with many subliminal images, video games and a constant barrage of pop music and infotainment loaded with the confusing “New Age” propaganda. Traditional values, parents, Christians and the Holy Bible especially, are mocked and demonized in a barrage of ridicule. Just look at the Amish jokes!

The endless waves of news reports, TV shows, advertising, music and twittering is often turning young brains to mush. Illiteracy is a growing problem and hard copy sales are falling like rocks and the presses are increasingly idle. Today, our scope of vision is wide, but many people’s focus is lacking in the inundation of infotainment skewed by politics and commerce, the obvious propaganda and subliminal manipulations, engineered economic pressures and social confusions.

“Those who stand for nothing will fall for anything,” the old adage states. Today our children are taught there is no right or wrong, no absolute truth. Grading is often meaningless as all students must now be honored for effort rather than achievement in the move to level self-esteems and promote “group-think“. Teachers tell students not to discuss certain lessons with parents,. “They wouldn’t understand.” It is no wonder schools are multimillion dollar generators of illiteracy and reckless sex where Marx, Darwin, “gay rights”, globalism, multiculturalism, condoms and abortion are more important than reading, writing, and arithmetic. Kids know nothing of their American Heritage, are taught to disrespect “old dead white men”.

Read the 1779 book written by Rev. William Whewell, a primer On The Principle Of English University Education. The book outlines the philosophy of education contemporary with America’s founders, and illustrates how the founders’ education was as different from today’s students as day is from night.  In the 1700′s, discipline was rigid and narrowly focused to broaden minds in critical thinking. Today’s students suffer lax discipline in a broad scope tolerant of all deviants to narrow minds with “zero tolerance” for morality or consistency.  Schools now lower common denominators. 

Youth now pursue the “modern lifestyles” where the lewd, crude, ignorant behavior is fashionable. TV glorifies idiocy, buffoonish fathers and pushy women, has made an art form of insulting people. Rap music is often antisocial, psychotic. Video games and Ipods offer escape from the real world in virtual realities found more desirable.

Youth are herded obliviously down the chutes like dumb sheep for the fleecing. They are totally dependent, unable to provide for themselves outside being wage slaves. They will  meekly submit to fraudulent business practices, outrageous taxation, constant invasive surveillance, bad vaccines and groping hands, deceitful legal processes, disinformation, and increasingly fascist government control of every facet of life. Entranced by subliminally laced media, fluoridated by tap water, drugged for every reason, led by sexy commercial messages, they think they are free. But they are running a rat race in the maze set before them, in paths laid out by the unseen social engineers exploiting their every move. The wolves know which way the sheep will run when they terrorize them, and plan ahead to have other wolves laying in wait where the sheep will be driven to be most vulnerable.

The Spirit of ‘76 arose from colonial pulpits inspiring the Minute Men to take up arms seeking independence from an unjust British Empire. Noah Webster taught “Our citizens should early understand that the genuine source of correct republican principles is the Bible, particularly the New Testament, or the Christian religion.” The US Supreme Court in the 1848 case of Vidal v. Girard issued a unanimous verdict that the Bible should be taught in schools. But since 1963, the Bible is banned from schools, as is any mention of God’s Ten Commandments. Christ, even at Christmas, is banned in public places, even in our legal holiday held in His name! Of course, the courts have long been busy outlawing American Heritage, ignoring the principles, practices, and rulings of the earlier courts and the Founding Fathers. Except where prohibited by law, the US Constitution is honored. The Bill of Rights is not only infringed, but null and void in view of The Patriot Act. Truth, Justice, and Liberty are illegal and dangerous practices in modern America.

Do you find it odd the practices and activities of those who fought in the Revolutionary War, sat in the Constitutional Convention, are more recently ruled “unconstitutional”? As if they did not know America’s founding principles?

We need to recall how the Declaration of Independence was a documentation of defiance based on Christian liberty principles, the pursuit of an ethical society of free people. The Constitution was written to document a compromise and jurisdiction imposed to collect and rule a corporate empire clothed in the language of a republic. You should recall the Union of Soviet Socialist Republics

We fought a war for indendepence shouting “No king but Jesus”, with the idea that no man was above the law. As Thomas Jefferson said, “Equal protection for all, special privileges for none.” Of course, “special privileges” is what government is all about. The US President can even have people killed merely on his command, wielding more power than King George III ever dreamed of, with no due process or judicial oversight required. The president’s “plenary powers” let him avoid being subject to laws enacted by simply writing a little note to Congress. The Supreme Court seems to hold the notion that nobody, no how, no way, has any legal standing to challenge the president, judging by the refusal to hear any of many cases to that end. The concept of  “Checks and Balances” among the branches of government has been reduced to a hollow anachronism  openly mocked in the halls of corrupt power brokers.

The recent court-martial of Lt. Col. Terry Lakin made a bold mockery of justice. His defense counsel was denied right of discovery, right to produce expert testimony, or even discuss his motive for challenging Barack Obama’s eligibility to sit as Commander-in-Chief. The judge stated this was because the court did not want to “embarrass” Obama.

You may have noticed also that warrants, habeus corpus, Miranda, right to an attorney, truth as a defense, and the concept of “innocent until proven guilty” have all been discarded by our so-called justice system. Fully informed jurors are banned by deceitful courts desiring ignorance.

Much like a Roman Emperor, President Nixon said, “It isn’t illegal when the president does it.” This is a regal bearing, no? The White House is not the “People’s House”, it is an imperial palace ruled by executive privilege and plenary powers! Remember Vice President Cheney shooting that lawyer in the face with a shotgun? How he was allowed to brush off the deputies who responded, and no charges were filed? The lawyer even made an apology on TV for ruining Cheney’s day!  Talk about hubris and intimidating clout!

It is high time We the People remember our Declaration of Independence noting our right to alter or abolish an abusive government. We must relearn how to live independently, and no longer be taught to be deluded wage slaves. We have been dispossessed!  We must now exercise our God-given rights and proclaim liberty throughout the land. Uncle Sam gives us all the respect Colonel Sanders gave chickens! Take off the blinders and rose-colored glasses before you lose your head! Remember the price of freedom is eternal vigilance!

Be alert and think globally, but act locally against the New World Order. We must focus on our needs and nature, and nature’s God, our homes and families. We must assert our liberty principles and recall they are based upon individual rights and responsibilities for a free people in a nation under God, on land under our feet. It is true in Christ’s love that offense is prohibited, but defense is duty! We must serve as watchmen, alert our communities, walk softly and carry a big stick… even a 12 gauge. Arise, Christian soldiers! From evil we must secede to succeed!  We cannot serve God and Mammon. Where is your focus? Look to the Way, the Truth, and the Life! No king but Jesus!


This Is Really Pretty Straightforward

February 18th, 2011 by


Neal’s Soapbox


Posted on January 28, 2011 by neal


Before I get started, there is something I would like for you to take a moment to think about. Whenever government enacts a law, what authority do they have to require you to comply with that law? Take as much time as you want, but it is important that you give that question a great deal of thought before proceeding any further.

From the many conversations I have had with people, there seems to be a general consensus that just because our government enacts a law, the people of this country are duty bound to obey it. The reason people think that is because, for the most part, they have not been taught the truth about the nature, and purpose, of their government.

Our Constitution is more that just a 200 year old piece of parchment relegated to a display case in the National Archives. To put it plain and simple, our system of government would not exist were it not for the Constitution. Our government exists because we created it, as proclaimed in the Preamble to the Constitution, “We the People of the United States…do ordain and establish this Constitution for the United States of America.”

In 1791, Thomas Paine wrote a book entitled The Rights of Man. Although Mr. Paine’s book dealt mainly with the French Revolution, he did provide, what I consider to be, the best description I’ve ever read of a constitution.

I would like you pay close attention to what Thomas Paine had to say about constitutions, “A constitution is not a thing in name only, but in fact. It has not an ideal, but a real existence; and wherever it cannot be produced in a visible form, there is none. A constitution is a thing antecedent to a government, and a government is only the creature of a constitution. The constitution of a country is not the act of its government, but of the people constituting its government. It is the body of elements, to which you can refer, and quote article by article; and which contains the principles on which the government shall be established, the manner in which it shall be organised, the powers it shall have, the mode of elections, the duration of Parliaments, or by what other name such bodies may be called; the powers which the executive part of the government shall have; and in fine, everything that relates to the complete organisation of a civil government, and the principles on which it shall act, and by which it shall be bound. A constitution, therefore, is to a government what the laws made afterwards by that government are to a court of judicature. The court of judicature does not make the laws, neither can it alter them; it only acts in conformity to the laws made: and the government is in like manner governed by the constitution.”

I have been told that at times I rely too heavily upon quotations from our nation’s founders to explain my point of view. Who else am I to turn to in attempting to understand their intent? Would you have me quote from current members of Congress, or our current President?

In 1969, the Supreme Court heard the case of Powell v. McCormack. In their decision, the Court ruled, “The values of the Framers of the Constitution must be applied in any case construing the Constitution. Inferences from the text and history of the Constitution should be given great weight in discerning the original understanding and in determining the intentions of those who ratified the constitution.” For once, the Court and I appear to agree on something. Who better to explain what the Constitution means than those who had a hand in writing it?

In interpreting the Constitution there probably is no source for understanding what it means than the Federalist Papers, a series of 85 essays, penned by James Madison, Alexander Hamilton, and John Jay.
People seem to think that our government can pass whatever laws they deem necessary for the general welfare of our nation. However, in Federalist No. 45, James Madison had something entirely different to say, “The powers delegated by the proposed Constitution to the federal government are few and defined.”

In 1825, Thomas Jefferson drafted the Declaration and Protest of Virginia. From that document I quote, “The greatest [calamity] which could befall [us would be] submission to a government of unlimited powers.”

So, just for arguments sake, let’s say the government were to pass a law which the Constitution does not clearly authorize them to legislate upon, would the people be obligated to obey it?

In Federalist 33, Alexander Hamilton declared that if the government were to pass a law that it has no authority to pass, then it “…would not be the supreme law of the land, but a usurpation of power not granted by the Constitution…”

In response to the passage of the Alien and Sedition Acts, Thomas Jefferson drafted the Kentucky Resolutions, which in part stated, “Resolved, That the several States composing the United States of America, are not united on the principle of unlimited submission to their General Government . . . . and that whensoever the General Government assumes undelegated powers, its acts are unauthoritative, void, and of no force. . . . that the government created by this compact [the Constitution for the United States] was not made the exclusive or final judge of the extent of the powers delegated to itself; since that would have made its discretion, and not the Constitution, the measure of its powers…”

Did you catch that? When our government assumes undelegated powers, its acts are void and of no force. Clearly Jefferson felt that if our government overstepped its clearly defined powers, that the people were under no obligation to obey those laws.

If that was not clear enough, then consider what Jefferson stated in his Notes on Virginia, “[The purpose of a written constitution is] to bind up the several branches of government by certain laws, which, when they transgress, their acts shall become nullities; to render unnecessary an appeal to the people, or in other words a rebellion…”

Remember, the Federalist Papers are considered to be the best source for understanding the meaning of the Constitution. In Federalist No. 78, Alexander Hamilton wrote, “…every act of a delegated authority, contrary to the tenor of the commission under which it is exercised, is void. No legislative act, therefore, contrary to the Constitution, can be valid. To deny this, would be to affirm, that the deputy is greater than his principal; that the servant is above his master; that the representatives of the people are superior to the people themselves; that men acting by virtue of powers, may do not only what their powers do not authorize, but what they forbid.”

I think I have made it clear that our government was created to act upon certain defined matters, and that when it overstepped its legal authority, the people are under no obligation to obey any laws passed by them.

Yet many people are of the opinion that just because a majority of the people support our government, then any assumptions of power by the government is acceptable. However, that is not the case.

In a letter written to James Monroe, James Madison said, “There is no maxim in my opinion which is more liable to be misapplied, and which therefore needs elucidation than the current one that the interest of the majority is the political standard of right and wrong… In fact it is only reestablishing under another name and a more specious form, force as the measure of right…”

Whether the minority be a fraction of the people, or an individual, the majority have no authority to ask their representatives to enact unconstitutional edicts. As Jefferson stated, “The majority, oppressing an individual, is guilty of a crime, abuses its strength, and by acting on the law of the strongest breaks up the foundations of society.”

You’ll notice that Jefferson said that when the majority oppresses the minority, it is a crime. If you recall, from Jefferson’s Notes on Virginia, he said that the purpose of a constitution was to bind up the government by certain laws. The Constitution is the law that our government is bound by oath to obey.

Now, let me ask you a simple question. What do you call someone who breaks the law? I don’t know about you, but I call them a criminal. The simple truth is that when our government assumes undelegated powers, and then forces us to obey those laws, they are criminals.

In 1772, under the pseudonym of Candidus, Samuel Adams wrote the following to the Boston Gazette, “[I]f the public are bound to yield obedience to laws to which they cannot give their approbation, they are slaves to those who make such laws and enforce them.”

Remember now what Hamilton said in Federalist No. 78, “No legislative act, therefore, contrary to the Constitution, can be valid. To deny this, would be to affirm…that the representatives of the people are superior to the people themselves…”

James Madison clearly stated, “The people are the only legitimate fountain of power, and it is from them that the constitutional charter, under which the several branches of government hold their power, is derived.”

If we hold the power, then we can, and ought to, revoke that power if these continued abuses of power are the cause of a loss of liberty. Some people say that our Constitution is a living document that needs to be interpreted according to the times we live in. Not so. According to the Supreme Court, “The Constitution is a written instrument. As such, its meaning does not alter. That which it meant when it was adopted, it means now.” (South Carolina v. United States)

People have grown so accustomed to our government doing whatever it deems is in the best interests of the nation, or the people, that they simply ignore the fact that with every new law our government passes, they are breaking the Supreme law of the land.

English philosopher John Locke was a major influence upon the thinking of Thomas Jefferson. Something Locke once wrote fits in nicely to what I am trying to say, “The people cannot delegate to government the power to do anything which would be unlawful for them to do themselves. … whenever the Legislators endeavor to take away, and destroy the Property of the People, or to reduce them to Slavery under Arbitrary Power, they put themselves into a state of War with the People, who are thereupon absolved from any farther Obedience, and are left to the common Refuge, which God hath provided for all Men, against Force and Violence. Whensoever therefore the Legislative shall transgress this fundamental Rule of Society, and either by Ambition, Fear, Folly or Corruption, endeavor to grasp themselves, or put into the hands of any other an Absolute Power over the Lives, Liberties, and Estates of the People; By this breach of Trust they forfeit the Power the People had put into their hands…”

In Federalist No. 28, Alexander Hamilton writes, “If the representatives of the people betray their constituents, there is then no recourse left but in the exertion of that original right of self-defense… ”
I think I have proven that our founders felt that our government was to be one of limited powers, and that if they assume undelegated powers then we are under no obligation to obey these assumptions of unconstitutional powers.

You, as a citizen of this nation, may not agree with me. You may feel that our government can, and should, pass whatever laws it sees as being necessary to provide for the welfare of the people. If that is how you feel, allow me to explain one more simple fact. If our Constitution is indeed the Supreme law of the land; and if, the representatives of the people assume undelegated powers, then they are in fact guilty of breaking the law. Therefore, if you as citizens, continue to vote for these same people, who are guilty of violating their oath to uphold the Constitution, then you also are an accomplice, as it is by your votes that these criminals remain in office.

You may not like what I have just told you, but if you put aside your biases, and the bullshit you have been taught in school, and rely simply upon the evidence provided, then you cannot deny that I speak the truth.

The philosopher Voltaire once said, “It is dangerous to be right in matters on which the established authorities are wrong.” He was right. Yet our nation was founded by men who had the courage to speak out against tyranny and oppression. I just hope that my efforts are not wasted, that they do not fall upon deaf ears.


Dr. David Janda explains rationing and why Dr. Rob Steele must defeat Dingell.

February 18th, 2011 by




A seven year sedentary lifestyle in front of a computer, studying the reasons for a dying nation have finally taken their toll these past few weeks, and at seventy, I am now finding out first hand what the effects of Obama Care really are.

In years past, an infection in my sinus and lungs could be cured by a dose of Augmentin and a few days of rest.


Augmentin 875 mg — 875 mg of amoxicillin and 125 mg of clavulanic acid per tablet.

Augmentin contains two different medications: amoxicillin and clavulanate potassium (also known as clavulanic acid or simply clavulanate). It belongs to a group of medications known as aminopenicillins, which is part of a larger group of medications known as beta-lactam antibiotics (named after the ring-like "lactam" structure of these antibiotics). Amoxicillin works by stopping bacteria from making cell walls, which eventually causes the bacteria to die. However, many bacteria have developed resistance to amoxicillin and similar antibiotics by producing enzymes called beta-lactamases. Beta-lactamases break the beta-lactam ring, making amoxicillin and similar antibiotics ineffective.

The other component of Augmentin (clavulanate) is known as a beta-lactamase inhibitor. Clavulanate binds to bacterial beta-lactamase and stops the enzymes from breaking down the amoxicillin molecule. Clavulanate itself has no significant antibacterial activity; it merely helps to prevent amoxicillin from being broken down by bacteria that would otherwise be resistant to it. Essentially, clavulanate "augments" the activity of amoxicillin (hence the name Augmentin).

Slowly over the years it has been harder and harder to obtain Augmentin manufactured by  GlaxoSmithKline.

Augmentin was originally made by GlaxoSmithKline. The patent for the drug has expired, and several companies currently make generic versions of Augmentin.

However, not all strengths and forms of Augmentin are available in generic form.


It has consistently been my experience that the generic versions do not give me diarrhea and do not cure the infection, in spite of published information, and the original has had a 100% success rate.

During my last Doctors visit, no amount of complaining could produce a prescription for the original brand name Augmentin, and the old method of the Doctor taking hand written notes was being done on a laptop, which led to a conversation about Obama Care. This Doctor then admitted that he had no choice in his decision, and it was the Generic or nothing.

If the reader sees no problem with this method of health-care, it is my opinion that you have shit for brains, and that’s why you love bureaucrats making your decisions.

James OldDog Harvey


Businessman eyes foreign trade zone expansion

February 11th, 2011 by



Businessman eyes foreign trade zone expansion



From: "Ted Doke" <doke8@mchsi.com>
Subject: Businessman eyes foreign trade zone expansion
Date: Wed, 9 Feb 2011 15:50:44 -0600


By Allison Brophy Champion
Published: August 14, 2010

What is a foreign trade zone?
A foreign trade zone ­ also known as a free trade zone or free port ­ is an area within which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. FTZs are organized around major seaports, international airports and national frontiers ­ areas with many geographic advantages for trade. Virginiahas five FTZs (Culpeper, Norfolk, Dulles Airport, Richmondand Dublin).
Source: Britannica.com
An out-of-state businessmanfailed to garner initial support Friday from the Culpeper Economic Development Committee for a proposal that would expand the county’s dormant foreign trade zone to include two properties in Fauquier County and one in Prince William County.
Michael O’Beirne of Colorado, project coordinator for Maryland-based Mid Atlantic Global Trade Consortium, made his unsuccessful pitch to the committee at its regular meeting in the county boardroom.
A major drawback expressed by the EDC in not endorsing the proposal was O’Beirne’s refusal to disclose potential businesses interested in locating in the foreign trade zone ­ he said that was not required as part of the application. The committee, in addition, could not envision any substantial economic benefits of the deal to the local community.
“I can’t see how there is any advantage for Culpeper County to move forward on this request,” said Carl Sachs, the county’s economic development director. “Why are we spinning our wheels to make another county more competitive? I’m not sure we want to be tied to this.”
Nonetheless, the committee agreed to further consider the request at a special meeting Aug. 20 at 7:30 a.m. in the county boardroom.

Culpeper’s FTZ
Though not widely known locally, the U.S. Department of Commerce’s International Trade Administration approved an application in the early 1990s from the Culpeper Chamber of Commerceto establish a foreign trade zone here, No. 185.
It is one of only five in the state; the others are in Norfolk, Dulles Airport, Richmond and Dublin.
The economic benefit for U.S.manufacturers engaged in international trade that are located in foreign trade zones is that they receive tax-free treatment for items processed domestically and then exported, and deferred duty payments on items until they are brought out of the FTZ for sale in the U.S.market.
Continental Teves and Rochesterwere the original subzones named as part of the Culpeper FTZ application, though that status for both businesses has since lapsed.
A few months ago, at the request of the chamber of commerce, the federal FTZ Boardapproved a transfer of authority of the Culpeper FTZ to Culpeper County government.
According to Sachs, “the biggest piece” of the local foreign trade zone is the Culpeper County Industrial Airpark. In addition, Merckof Front Royal is an existing subzone of the Culpeper FTZ.
But Sachs said the risk of expanding the zone to include O’Beirne’s clients was the possibility of “alienating” the Foreign Trade Zone Board by submitting applications “on a basically vacant” FTZ.
“The risk is tied to having a good working relationship with the Foreign Trade Zone Board,” he said. “The board is not in a hurry to approve vacant trade zones.”
Sachs said he was not convinced any business was committed to locating at the sites in Fauquierand Prince Williamcounties.
“We are basically enhancing the property owners’ position to be able to hang a shingle on the property saying, ‘Hey, we’re a foreign trade zone,’ but at our expense,” he said.

Business conversation
Culpeper County Supervisor Tom Underwood said aggravating the FTZ Boardwas not a good reason to not consider expanding the local trade zone.
“We’ve had a foreign trade zone for a long time, and it isn’t doing much,” said Underwood, who is willing to look at the three new applications for the FTZ’s expansion.
In his introductory remarks, O’Beirne said he was eager to move forward with the proposal on behalf of his clients: 1) a Charlottesville real estate companythat owns two business parks in Fauquier County’s Marshalland New Baltimorelocations and 2) a Manassas business consortium that owns a business parkin Bristow.
“I’m a hired gun for real estate investorsin northern Virginia,” he said, describing himself as “an independent mercenary.”
“We have come to your community to engage in a serious business conversation.”
O’Beirne said he first contacted the Culpeper County Chamber of Commerce about the expansion of the foreign trade zone in October.
“We’ve got to move forward or kill it and move onto other states,” he said, adding that time is of the essence.
O’Beirne originally brought the proposal to the grantees of the Dulles FTZ for their approval, but that entity would not accept his application. According to O’Beirne, that’s because it’s a “highly political process.”
According to Sachs, Dulles turned it down for the same reason he doesn’t like the deal ­ that is, O’Beirne will not reveal his business clients.
And yet, his original proposal for expansion of the Dulles FTZ to include the properties in Bristow and Fauquier County received written support from Prince William County Board of SupervisorsChairman Corey Stewart, Congressman Gerald Connolly, D-Woodbridge, and Terrence Nyhous, chairman of the Fauquier County Board of Supervisors.
“A Foreign Trade Zone … serves as a critical economic development tool,” Nyhous wrote in an April letter O’Beirne provided to the Star-Exponent.
Nyhous went on to say FTZs “provide for the convenience of commerce towards new jobs, an expanded tax base, new capital investment and positive net business growth here, at home, while doing business locally.”

Good for Culpeper?
The expanded Culpeper FTZ, if approved, would incorporate the Mill Run Business Parkin New Baltimore, a 154-acre site in Marshalland the 152-acre Manassas International Business Park in Bristow.
But how will it help Culpeper? Will it bring new jobs and businesses here? Culpeper County Supervisor Steve Nixonwanted to know.
“I deal with private property interests,” O’Beirne said. “I can’t ensure the economic development of your community.”
However, he said, Culpeper County would receive at least $10,000 in annual fees for allowing expansion of its FTZ. O’Beirne claimed to have about 100 different leads on businesses interested in locating on the three properties. He said every time an entity located to the sites Culpeper would receive exposure.
“We are wide open to adding synergies to your community,” O’Beirne said.
Robert Schott, presidentof All Cargo Expediting Servicesof Washington, D.C., accompanied O’Beirne Friday to Culpeper as an interested operator/user in the Culpeper FTZ. Part of his role would be preparing the application for expanding the local trade zone.
“What does it do for Culpeper? As this region grows, your zone gets publicity, attention and attracts the businesses,” he said, adding that Culpeper’s FTZ was “an ideal launching pad for the operations in neighboring counties.”
“The focus will be to bring jobs and businesses to the area ­ it’s good for Virginia,” said Schott.
Nixonwas not convinced.
“We don’t know you guys from Adam,” he said. “You stand up here and tell us all the wonderful things you are going to do for us, but we’ve had this foreign trade zone for 20-plus years and none of the things you are talking about have happened.”

Committee cautious
Culpeper Economic Development Committee member Tripp Butler of Virginia Community Banksaid at the end of Friday’s meeting he was not ready to weigh in on the proposal one way or the other.
“We are Culpeper, we have sort of a dumbed-down society here and will take more time making decisions to make sure we are getting in bed with the right people,” he said.
O’Beirne said he would have to consult with his lawyers before knowing if he could disclose potential businesses interested in locating in the FTZ ­ information the committee very much wanted to know.
“The foreign trade zone process has become so politicized and the economy has become so politicized,” O’Beirne said after the meeting of why he is hesitant to disclose specific interests. “We’re very afraid of opposition when there’s an obvious competing company seeing this disclosure.”
At next week’s meeting, the EDC hopes to hear more on the proposal from Culpeper County Chamber of Commerce Director Jim Charapich, who left early from Friday’s 90-minute meeting, as well as committee chairman Bruce Clark, a local attorney, who was not present.
Sachs said he would also attempt to get some sort of official correspondence on the proposal from the FTZ Board.


All Ambassadors Called Back to Washington!

February 8th, 2011 by


All Ambassadors Called Back to Washington!

A new currency distributed with new treasury dollars?
Sunday, February 06, 2011 2:21
FORWARDED FROM : becworks@gmail.com


U.S. Ambassadors of the world called back to Washington

In an unprecedented move, apparently one that has never happened before, nearly all U.S. Ambassadors to all nations have been called back to Washington for a summit conference this week.

politico.com reports, "Ambassadors from almost all 260 U.S. embassies, consulates and other posts in more than 180 countries are expected to convene at the State Department for what’s being billed as the first meeting of its kind."

huffingtonpost.com, "Secretary of State Hillary Rodham Clinton is convening an unprecedented mass meeting of U.S. ambassadors."

The first logical thought that comes to mind…  Looking back at all previous world crisis, what might now be so important, evidently more-so than anything ever in the past, to call all Ambassadors back to Washington?

The sky’s the limit with ideas and conspiracy…

To get all their stories ‘straight’ ahead of time – for something

To prearrange settling the debt score between nations prior to a new world currency roll-out

A dollar currency devaluation

China is calling in our debt

New severely damaging Wikileaks about to release

Afraid of electronic communication leaks of something very important to discuss 
While the main stream and most Americans are involved with the SuperBowl at the moment, hardly any reporting on the event can be found. Fine time to do something 'under the radar'.

Could this actually be simply a 'first time' of such a gathering to discuss 'normal' business? At first instinct, suspicion is aroused. stay tuned…
Update… The 'official' explanation from the U.S. State Dept. is something named, QDDR.

Disclaimer:  These notes are not intended to be used as accurate transmission of the GET Telephone Conference and Guest Speaker "Contact 2".  The notes are only shared for the sakes of those who do not have the time to listen to the AUDEO although, IT IS HIGHLY RECOMMENDED.

R.E. Sutherland, M.Ed./sciences
Freelance Investigative Reporter: becworks@gmail.com

Audeo of a G.E.T. Phone conference with “Contact 2"  who is a former intelligence Air Force officer. Takes 2 hours.



1. Disclosure is given about the global currency shift that is happening today . . NOW . . and we don't see it.  We are not being told what is happening.

FACT:  The Chinese took away the processing authority of delivering the Global Settlements and the Prosperity Packages , and are making the deliveries at this time.  Americans were dragging their feet on the promised deliveries, and the Chinese did not put up with it.

There was an Emergency Meeting over the weekend with the Secretary of the Treasury in Washington on Saturday and Sunday.

A meeting with the Chinese Dragons and the Pentagon occurred this weekend.

Monday, today, Secretary of State Hillary Clinton recalled all of the US Ambassadors and Consulates for a 2 Day Meeting in Washington, DC.  The reason for the meeting was to prevent interference on other levels as they continue this process.

Once the Program Packages and Global Settlements are delivered, there will be a new currency distributed with new treasury dollars.

The Iraqi DINAR will be devalued

There will be a new level global playing field with the new currency.

The sequential events will happen very quickly; all of this should be over by Wednesday.

The Chinese New Year is on Thursday, and they want it done by then.

By next Monday, there should be a new banking system.

The Iraqi DINAR will be used for oil purchases – globally.
the Chinese Yuan will be used for exchanges.

Currencies are recognized as sovereign-based, and will be continued .. just reformed.

Q&A — BRIEF EXCERPTS OF ANSWERS ONLY  (Go to the video for the details)

1.  By revaluating the DINAR, the price of USA gasoline will rise to the same as other nations.  It has been artificially and fraudulently suppressed. 

2.  The Federal Reserve has kept the USA in a perpetual state of DEBT and used the Americans as the slaves to pay it.  This is going to end.  The transition to new POSITIVE valued currencies will be based in Gold, Silver or Oil.

3.  The Federal Reserve is fighting this global action.  The Chinese circumvented it.China is dismantling the OPEC Cartel, that was created by the Rockefeller elitists.

4.  The situation in Greece is different.  People were burning the banks that were under Rockefellers.  At this time, Spain and Portugal will be okay.

5.  The elitists all over the globe are going down.

6.  At the end of WW-II, there were 152,000 NAZI iffucers infiltrated into the US Intelligence community, and they began rebuilding the regime in the USA.  The American CIA was patterned after the SS.

7.  The National Security Act with its Black Projects forced Americans to sign away their rights in the name of national security.

8.  The NAZI plan for seizing power was disclosed by a Professor in his Ph.D. Thesis, which was later a book entitled, How the Nazi's Seized Power.

9.  To gain control of the USA, the hidden NAZI regime had to seize control over:
      (a) Intelligence community,
      (b) Media,
      (c) Banking, and
      (d) the Military Industrial Complex.

10.  In order to gain control over the Media, there had to be a willing Religious group .. the Fundamental Christians were the perfect tool because they had Dogma and Patriotism.  TRAP:  Everyone wants to love their country.

11.  After a lot of research, the United STates military minds agreed — THERE IS NO HAPPY ENDING TO A NUCLEAR WAR.  So, they started using the debasement of currency to entrap their enemies and suppress them.

12.  The military plan to debase currencies as a military strategy went to Howard Hughes who shelved it; however, President Reagan brought it out, funded it, and used it to gut the Soviet Union.  It worked.

13.  A total of $43,7 Trillion was made during Reagan's exploitation of Russia.  It was high-jacked by President Bush, and never returned.  This is the reason for the Settlement Programs today.

14.  The CIA is running the global Drug Cartels.  It is going to be defunded when the new currency is in place.

15.  An even playing field will have transparency.  It will eliminate the reasons for (a) war, (b) Drug cartels, (c) Oil manipulations, and (d) Chainless slaves to pay taxes.

16.  China is not interested in expansion .. never was and never will be.  It is focused on making life better for the country.  China's wealthy leaders only used communism to reunite the very divided country.  Americans do not need to fear China, and try to understand that it thinks very differently.

17.  China allowed the USA to borrow $43 Trillion to restart the US economy in 1933.

        In 1978 – the 75 year loan came due. 

        Congress wanted to ignore it.  President Bush, Sr. gave NWO speeches.  He was arrogant, and believed that the Chinese
Dynasty had all died; therefore, he did not have to pay back the debt.  During the Clinton administration, the Chinese presented the heir to that Dynasty, and the money was due.

18.  The Gold located in the bottom of the Twin Trade Towers was quietly removed at 11:00 pm at night by 4 garbage trucks, and taken to the Russian vessels 50 miles North of the Hudson River.  It was off-loaded onto 2 airplanes and then taken to the Mahauve Air Field. Once all of the gold was removed, the towers were imploded – September 11, 2001.


19.  The "HOMERUN" software was developed to take control over 757 and 767 airplanes from the ground, in case of problems in the cockpit.  There were only 3 planes in the 911 event.  The Pentagon was hit by a smaller craft.

20.  The purpose of Basel I and II is to stop unbacked currency and produce International regulations for accounts.

21.  All debts are in the process of being "PAID in FULL". via the Global Settlements.  Berneke recently siad that CDOs are worthless.  He was telling us that "all debts are gone."

22.  Mortgages that do not have a Promissory Note are technically and legally gone, according to recent Court decisions.

23.  The MER is trying to play a game with old property.  (listen to the video)

24.  It is predicted that the IRS is not going to be around much longer.  Federal Reserve is definitely going away.

25.  When American people learn about the atrocities created by their own government, they will be as horrified as the little German towns that were within 1 kilometer of the concentration camps, but did not know what was happening.  There will be people prosecuted for US War Crimes in the near future.

26.  There are very, very wealthy powerful Chinese families who are working behind the scenes on these coming changes.  They choose to have no losers.  They want "Two winners" and long term stability.  Communism was a tool, just like Socialism, Democracy, and other political choices.  They are not absolutists.

27.  The USA recently parted 2 nuclear carriers within the 200 mile Exclusive Economic Zone of China.  The USA was told to move them.  The USA refused.  An undetected Chinese submarine exploded an IMP weapon behind the Reagan aircraft carrier, which accidentally fried all of the electrical equipment in the Princess Cruise ship.  the message sent to the USA was that the Chinese are capable of blowing up the two carriers, and offered the USA the opportunity to comply.  This occurred 35 miles South of San Diego.

28.  The speaker said to be prudent and take your time with decisions.  Let things settle and understand them before making a move.

"A huge Operation has gone on right before your eyes, and Americans did not see it.  Changing in a way never seen before. The charade is being disrobed." 




IMF Is Solution to Global Crises – Strauss – Kahn

February 2nd, 2011 by


The Daily Bell


IMF Is Solution to Global Crises – Strauss – Kahn

Wednesday, February 02, 2011 – by  Staff Report

The International Monetary Fund stands ready to help riot-torn Egypt rebuild its economy, the IMF chief said Tuesday as he warned governments to tackle unemployment and income inequality or risk war. Dominique Strauss-Kahn (left) also said rising food prices could have "potentially devastating consequences" for poorer nations, and warned that Asia's fast-growing economies faced a risk of a "hard landing". Overall, according to the IMF managing director, widening imbalances across and within countries were sparking tensions that threaten to derail the fragile global economic recovery — and could even spark armed conflict. – AFP

Dominant Social Theme: The IMF is a very necessary instrumentality.

Free-Market Analysis: It is fascinating to watch world events unfold through the prism of the Internet. In this AFP article (excerpted above), we can see clearly how Dominique Strauss-Kahn, one of the more brutal and obvious functionaries of the power elite, intends to capitalize on the current Middle Eastern turmoil for the benefit of his agency, the International Monetary Fund.

Strauss-Kahn has attempted before to use various crises before to burnish the reputation and utility of the IMF. Most recently, he gave an interview given to Der Spiegal that cast the IMF as an inevitable precursor to a world central bank. At the time, we wrote Strauss-Kahns position seemed to be that the IMF, "need only graduate from SDRs to bancors and expand its monetary authority." His comments were so extreme that our analysis concluded that the Anglo-American elite "seems to have shed any inhibitions about moving slowly or deliberately toward global governance goals."


Now, Strauss-Kahn is at it again, predicting doom and gloom – a series of fear-based dominant social themes – and proposing the IMF as the solution. In a speech made in Singapore, he claimed the IMF stood ready to help with various global imbalances, including an emergent food shortage. "The IMF is ready to help in defining the kind of economic policy that could be put in place," he asserts.

Strauss-Kahn is eager to unearth potential ruin in the Middle East. He indicated that unemployment and a growing income gap was a "strong undercurrent of the political turmoil in Tunisia." Other countries exhibited "rising social strains," and these strains, he seems to believe could lead to "rising protectionism of trade and of finance."

In the speech, Strauss-Kahn reportedly worried about protectionism as a result of potential discord between nations. Within this context, he mentioned China's undervalued yuan but did not emphasize an immediate adjustment as regards the US dollar. Such a reconfiguration ought to be a slow one to avoid shocks to the larger global economy, he indicated. "While the recovery is under way, it is not the recovery we wanted," he reportedly said. "It is a recovery beset by tensions and strains — which could even sow the seeds of the next crisis."

He was concerned about the differing pace of different economies, which he saw as presaging the global economic crisis of 2008. "While growth remains below potential in the advanced economies, emerging and developing economies are growing much faster — and some may soon be overheating." Presumably, he was referring to China and the BRIC countries when making this statement, as price inflation is increasingly a factor in Brazil and India as well. Finally, he mentioned food prices, reportedly pointing out that they were rising "with potentially devastating consequences for low-income countries," he added.

Strauss-Kahn, like his World Bank counterpart Robert Zoellick, believes that the global institutions have a heady role to play in easing or ameliorating the world's problems. Zoellick recently wrote an article for the Financial Times (which the Bell analyzed) making the case that the G20 itself ought to become more deeply involved in the world's food situation. We pointed out the following:

It is actually a perfect example of an elite, fear-based mechanism at work. By creating nation-states, encouraging ethnic rivalries and generally stirring the pot, the Anglosphere has ensured a level of simmering chaos that makes it difficult if not impossible for certain societies to feed themselves on a regular basis. Africa's nation-states obviously come to mind. Having helped trigger the food-crisis, the Anglosphere is now beginning to make fixing it a priority. But as with so many other endeavors (when it comes to the Anglo-American axis), one has to approach the concept of "fixing" with some trepidation … These elite promotions tend to work as narratives, leading to the observer logically from one point to another.


One can, in fact, see in these crises and dislocations the slow circling of elite institutions. In a recent interview with Bloomberg news, Henry Kissinger commented on African and Middle Eastern unrest, saying, "This is only the first scene of the first act of a drama that is to be played out." The comment sounds more like a prediction than an observation. And food in the hands of Western elites certainly constitutes a weapon, a way of driving the world toward further sociopolitical consolidation.

The overwhelming impetus of people like Strauss-Kahn and Zoellick is to involve their institutions in the market whenever possible. It is a template for global governance. Every human act is to managed and even micromanaged and the place for a market-driven is honored only in the breech. Soon it will exist more as a talking point than a reality.

Conclusion: As we have indicated, elite plans are almost impossible to realize. The Invisible Hand of the market will have its way no matter what. Human beings are never immune to economic law. Of course, one could argue that the power elite is well aware that its solutions merely reflect and amplify the chaos being generated. Perhaps this is actually the point.


As I have said many times in the past, the global bankers are after all only human beings, so why are they immune from the same kind of treatment that the U.S. has imposed on other tyrants. America needs only the most obtuse excuse to murder the citizens of other countries, but the bankers can get away with destroying the whole damned nation, and for that matter, all nations.

When one considers the cost in lives and misery the bankers have imposed on humanity, they should be dragged through an endless gauntlet of excrement, and the people armed with rose limbs. So much of humanities misery can be attributed to them, it is impossible to comprehend how they can continue to be excluded from the most heinous torture. We don’t seem to care one bit if someone gets tortured when he decides to avenge his nation and attacks us with a dud bomb in his crouch. Americans would pay for the privilege of torturing him. It seems so easy to hate the little guy, and let the real villain escape with all of our money. Just what the hell is it going to take for American’s to expand the distance between their ears?

If we are so damned much better than everyone else, why can’t we see what is right in front of our eyes? Letting these people escape what they deserve should make us ashamed of being Americans. Just think of what humanity could do with the hundreds of trillions of their assets. This ridiculous situation beats the shit out of me!


China on Track to Become Top Gold Buyer

February 2nd, 2011 by


02 02 11 China on Track to Become Top Gold Buyer

Le Metropole Members,

Cash is trash in China as rabbit-themed gold fills 'unbelievable' demand 
Submitted by cpowell on 07:03PM ET Wednesday, February 2, 2011. Section: Daily Dispatches
Bugs to Bernanke: That's all, folks!

China on Track to Become Top Gold Buyer

By Leslie Hook and Jack Farchy
Financial Times, London
Wednesday, February 2, 2011

China's gold imports are estimated to have more than doubled from a year ago in the run-up to Chinese new year, putting the country on track to overtake India as the world's largest consumer of the precious metal.

The growth in demand is being attributed in part to Chinese families giving each other gifts of gold instead of traditional red envelopes filled with cash.

The growth in demand is being attributed in part to Chinese families giving each other gifts of gold instead of traditional red envelopes filled with cash.

Fears of inflation have also driven demand for gold as a retail investment.

Precious metals traders in London and Hong Kong said on Wednesday they were stunned by the strength of Chinese buying in the past month. "The demand is unbelievable. The size of the orders is enormous," said one senior banker, who estimated that China had imported about 200 tonnes in three months.

… Dispatch continues below …


Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property
Company Press Release, October 27, 2010

VANCOUVER, British Columbia — Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:
Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.
Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.

Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.

Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface.

"The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."

For the company's full press release, please visit:


Gold prices softened in January on the back of positive economic data in the US, but prices for physical gold in Shanghai have been at a premium of about $20 per troy ounce over those in London, underscoring the tightness in Asian markets.

That spread fell to $4 on Wednesday because of slow trading during the new year.

Official data show China importing 209 tonnes of gold the first 10 months of last year, versus 333 tonnes for India for the whole year. The Indian festival of Diwali was once the key driver of seasonal demand patterns because of the large number of weddings taking place during the holidays.

But now, as India's gold demand has started to smooth out because of changing wedding habits, Chinese new year is starting to have a bigger impact.

Last year about a third of Chinese gold consumption was linked to the holidays, according to a precious metals trader, but this year the spike is more pronounced.

Gold gifts are more popular in China this year than ever, particularly rabbit-themed gold pieces to mark the year of the rabbit. Small bars of 100 ounces or less are elaborated engraved with auspicious rabbit idioms or scenes of rabbits at play.

A gold store in Tangshan, a mid-tier steel town near Beijing, was all but sold out of rabbit-themed products on a recent visit.

With about a five days to go before the start of the holidays, the store clerk said all that was left in stock was a 20-oz carved rabbit bar and a few leftover Bugs Bunny-style statuettes.

Edel Tully, precious metals strategist at UBS, said: "China is on the fast track to replace India as the largest physical consumer. And the Chinese new year is now significantly more important than Diwali in volume terms."

China consumes about 527 tonnes of gold a year, according to the World Gold Council, an industry body representing gold miners. Traders say China will overtake India as the largest consumer of gold this year.

"The seasonality around Chinese new year is something that we've seen in the last two to three years," said a senior trader in Asia. "This year the demand may actually also carry on after Chinese new year."

This week China's exchanges are closed for the holidays and traders are debating how much of the growth in imports has been seasonal and how much is a result of underlying demand. Gold has become popular with retail investors as a hedge against inflation because of curbs on the property market and negative real interest rates for Chinese bank deposits.

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Prophecy Resource Spins Off Platinum/Palladium Venture:
World-Class PGM Deposit in Yukon

Company Press Release, January 18, 2011

VANCOUVER, British Columbia — Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy.

PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding.

Following the transaction:

– Prophecy will own approximately 90 percent of PCNC.

– PCNC will consolidate its share capital on a 10 old for one new basis.

– Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp.

– Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings.

Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000.

For the complete announcement, please visit:


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http://www.oroyfinanzas.com/ (in Spanish)

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Ted Butler silver commentary archive:


Recommended Gold & Bullion Dealers
Coin and precious metals dealers who have supported GATA
and been recommended by our supporters:

Herengracht 574
1017 CJ Amsterdam, The Netherlands
+31 (0) 20 521 9424
Fax: +31 (0) 20 521 9333

Anglo Far-East Bullion Co.
Level 23, Monticello, Anastasio Ruiz N
Panama City, Panama
Contact: Alex Stanczyk

Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112

Bullion Custodial Services Inc.
280-60 Renfrew Drive
Markham, Ontario L3R 0E1, Canada
Rob Kirby, Sales Agent

5 Sager Drive
Rogers, Arkansas 72756
Contact: Ron Maines, Principal

Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
Michael Kosares, Proprietor

Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
Don Stott, Proprietor

El Dorado Discount Gold
13014 N. Dale Mabry Highway
Suite 133
Tampa, Florida 33618
Contact: Steve Forehand

Gold & Silver Inc.
429 Santa Monica Blvd.
Santa Monica, California 90401

63 Fitzwilliam Square
Dublin 2, Ireland
+353 (0)1-632-5010
… and …
No. 1 Cornhill
London EC3V 3ND, England
+44 (0)203-086-9200

GoldDrivers.com Inc.
Emancipatie Boulevard 29
Willemstad, Curacao
Netherlands Antilles
Contact: Eric Hommelberg

Net Transactions Ltd.
1st Floor
32 Commercial St.
St Helier, Jersey JE2 3RU
British Channel Islands (UK)
Tel: +44-1534-633-933

Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889

Jaxville Gold and Silver Trading Co.
4901-48 St.
Parkland Square, Lower Mall
Red Deer, Alberta, Canada
Jack Fortin, Owner and Operator

JH Mint
13241 Grass Valley Ave.
Grass Valley, California 95945

178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Fax: 514-875-6484

Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
Ed Lee, Proprietor

Liberty Coin Service
Bank of America Building
Frandor Shopping Center
300 Frandor Ave.
Lansing, Michigan 48912
Patrick A. Heller, Owner
Contact: Allan Beegle or Tom Coulson
800-933-4720 or 517-351-4720

MRCS Canada
12303-118 Ave. NW
Edmonton, Alberta T5L 2K2
Michael Riedel, Proprietor

Miles Franklin Ltd.
801 Twelve Oaks Center Drive
Suite 834
Wayzata, MN 55391
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614

Northwest Territorial Mint
2505 S. 320th St.
Federal Way, Washington 98003

Precious Metals International Ltd.
Anderson Square Building, 3rd Floor
George Town, Grand Cayman
P.O. Box 866
Cayman Islands, British West Indies
Proprietor: Richard S. Love
Toll-free: 866-764-2878
Local: 242-394-5527

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877

Royal Crown Precious Metals Ltd.
Suite 1500, HSBC Building
885 West Georgia St.
Vancouver, British Columbia V6C 3E8
Andreas Runge, President
Toll-free: 866-769-2521

Scottsdale Silver & Gold
20701 North Scottsdale Road
Suite 107-266
Scottsdale, Arizona 85255
1-888-SIL-BARZ or 1-888-745-2279

Seekbullion Gold and Silver Auctions
8420 S. Continental Divide Road
Suite 221
Littleton, Colorado 80127
Peter Spina, Owner

Silver Gold Bull
4819 45 Street
P.O. Box 2621
Rocky Mountain House, Alberta T4T-1L6
Contact: Mihali Belandis

Silver Trading Co.
445 Montgomery St.
PO Box 876
Shreveport, Louisiana 71107
Larry LaBorde, Proprietor

SprottMoney Ltd.
Royal Bank South Tower
200 Bay St.
Suite 2750, P.O. Box 90
Toronto, Ontario M5J 2J2
or toll-free 888-861-0775

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
Dr. Fred I. Goldstein, Senior Broker

The Moneychanger
Box 178
Westpoint, Tennessee 38486
Franklin Sanders
1-888-218-9226, 931-766-6066

Treasure Island Coins Inc.
1002 43rd St. SW
Fargo, North Dakota 58103

True Metals Group
728 West Ave., Suite 1100
Cocoa, Florida 32927
Daniel and Karina Ward, Owners

Worldwide Precious Metals (Canada) Ltd.
Suite 1488, 777 Hornby St.
Vancouver, British Columbia V6Z 1S4
President: John P. Downes
Toll-free: 1-866-623-2002
Local 778-945-2002
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Silver Supply Shortage?

February 1st, 2011 by

Silver Supply Shortage?


There are some bizarre things going on in the silver market at the moment, reminiscent of the supply shortages and high premiums witnessed in 2008. For starters, silver is currently in both short-term and long-term backwardation, suggesting there is higher demand for silver NOW than in the future. This is backed up by the U.S. mint reporting all-time record sales for silver eagles during the month of January, with three days still left to go. Sales are on pace to breach 5 million coins sold, shattering the November 2010 record of 4.6 million. It is worth noting that all of the 2010 American eagle gold proof coins also sold out, but the focus of this article will be on the increasing signs of a shortage in silver.

Just yesterday, King World News interviewed one of the top gold and silver dealers in the United States about tightness in the silver market. Bill Haynes is President and owner of CMI Gold & Silver and when asked about a shortage in silverhe stated:

"All of the major suppliers of 100 ounce silver bars are either weeks or months out, some will not even take orders. I had some conversations with a number of people who buy from them, had to dig through the information and some of them revealed that they thought the refineries were having trouble and the manufacturers were having trouble getting the physical product which falls right into the silver shortage.

It does surprise me because we did not see the buying that we saw in 2008, 2009 when our safes were absolutely emptied of 100 ounce silver bars, and that's the type of buying I thought we would have to see in order for there to be a shortage of 100 ounce silver bars.

I was able to get 100 ounce silver bars (recently) and then all of the sudden these guys I call them and say ok, we are talking 100 ounce silver bars, they'll say well, it's a month out on any order you place today. And then I have people telling me they will not take any orders on 100 ounce silver bars until May.

There's a couple of things that are going to happen that is going to shut a lot of people out of this market.All of the 100 ounce bars are going to be gone in a matter of days, not weeks, days. Then people are going to have to put up their money and they are going to have to wait weeks or months before they get their bars. They are also going to have to pay higher premiums for that product because the marketplace will put a higher premium on the bars on a price drop that depletes all of the vaults around the country."

Zerohedge also reported that the UK was the latest region affected by growing silver shortages after a British bullion dealer notified clients that the company had no remaining silver bars in stock and BullionVault posted a page on their site saying they were not accepting orders for silver in London.

In addition, Eric Sprott had to wait over two months to finally take delivery of the 22 million ounces needed for his new silver fund. He was recently quoted as saying:

"Frankly, we are concerned about the illiquidity in the physical silver market,"said Eric Sprott, Chief Investment Officer of Sprott Asset Management. "We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver."

Another example of the growing disconnect between the paper spot price and free market pricing is the fact that silver coins such as Silver Eagles or Canadian Maple Leafs are selling for $4 – $6 over spot on Ebay. This is a fairly liquid worldwide market for exchange and the premiums have been increasing in the past few months to as high as 20%!

Even one of the largest online dealers of silver bullion is now offering to BUY BACK silver coins such as American Eagles for $1.75 or more over spot price. That is right, while the official spot price was $26.75 this morning, APMEX was offering to buy Silver Eagle coins for $28.50.

Reasonable estimates suggest that if only 15% of those long silver futures decide to take delivery of physical silver, the COMEX will not have enough silver to deliver and a serious short squeeze will result in the silver price shooting dramatically higher. There has been a growing movement led my Max Keiser, Jim Sinclair and various newsletter writers encouraging investors to shun paper forms of ownership, buy only physical and stand for delivery on paper contracts. If this catches on, reaching the 15% threshold could happen rather quickly.

What is extraordinary about this apparent supply shortage is that it is occurring in the face of a declining spot price for silver. Economics 101 would teach that record demand and widespread shortages would create a spike in prices, but this is not occurring in the silver market and further highlights the growing disconnect between the phony paper market and true physical market.

To be fair, many are claiming that the buzz about a silver shortage is overblown, that Bullionvault is now selling silver again and that dealers may be exaggerating the case in order to create fear and drive sales. One dealer that I spoke to yesterday, Hannes at Tulving, told me that he has not seen any shortage in silver and has over 400,000 ounces in various forms, ready to be shipped. Perhaps the shortage story is getting overly dramatized or perhaps it has not hit all dealers yet. Time will sort this out, but either way, there are various fundamental conditions that are out of equilibrium and suggesting some underlying cause for concern.

Fundamentals Out of Balance


The fundamentals remain severely out of whack. Consider that since 1980 the above ground available gold is estimated to have increased by 600%, yet the price has still nearly doubled. During the same time period, the above ground available silver has declined by an estimated 90%, yet silver is still nearly 50% below its high from 1980. Even if we assumed that above ground supplies were stable for both metals, silver would have some serious catching up to do. But considering that the above ground silver supply has DECREASED significantly while the above ground gold supply has INCREASED significantly since 1980, supply and demand fundamentals would dictate that silver would be the metal making new highs and the gold/silver ratio would be reverting back toward the 15:1 ratio. With gold currently around $1,350, we should be seeing silver around $90 or higher.

The other thing to remember is that the fundamental divergence is only getting worse as gold is hoarded, while a significant percentage of the silver mined is used up in industrial applications such as batteries, converters, cell phones, computers, satellites, circuit boards, high tech weaponry, clean tech, water purification, etc. Demand continues to outpace supply each year and with stimulus-fueled economic growth continuing, the fundamentals are sure to drive silver prices much higher, despite the paper shorting schemes of the banksters.

So, to what extent there is a shortage in the silver market remains to be seen, but I would venture to guess that with a 80% gain in 2010, investor interest must be increasing in a relatively tight market. It will only take a small percentage of the money invested in stocks to switch over to physical silver to create the shortages that many are claiming. Either by a growing number of small investors waking up to silver's potential or just a few ultra-wealthy individuals deciding to take a stake, the potential for a massive short squeeze is very real.

CBO Projects U.S. Budget Deficit to Reach $1.5 trillion in 2011 – Highest EVER!

Adding to the fundamental conditions driving precious metals higher, the Congressional Budget Office is now forecasting that, with the current spending trajectory and the new tax compromise, total debt will reach $23 trillion by 2020. That is equal to 160% of today's GDP and 1.6 times the peak from World War II. This number does not count unfunded liabilities such as Social Security and Medicare, or the debt the government assumed from Freddie Mac and Fannie Mae, which puts the total debt over $100 Trillion by many estimates. With S&P downgrading Japan's debt and others warning that the U.S. could be next, there is certainly trouble brewing in the financial system. Some believe the United States is already past the point of no return and that it will be impossible to ever repay the mounting debt. It is all destined to end badly, either in default or hyperinflation.

The fundamental conditions for the dollar are deteriorating while the fundamental conditions for silver are improving.In yet another sign of the disconnect between the paper silver price and the fundamentals, silver has been declining at the same time that the dollar has been sliding. Such abnormalities can not persist and are sure to rebalance sooner rather than later.


Even after the 80% gain in 2010, silver remains one of the best investment opportunities available today. Supply shortage or not, investors would be wise to ignore the mainstream media claiming a top and instead use this dip as a buying opportunity. I expect silver to reach towards $45 during 2011 and surpass $100 within the next few years. The train is truly about to leave the station.Are you on board?

Realizing the disconnect between the gold and silver prices, I have been focusing my newsletter on junior silver miners that appear undervalued relative to their peers. If you would like to receive my newsletter, view the model portfolio and get email alerts when I am buying or selling, click here to sign up.


The Fed Is Now In The Business Of Manipulating The Stock Market.

January 30th, 2011 by


Jim Grant: " The Fed Is Now In The Business Of Manipulating The Stock Market…Should Confess It Has Sinned Grievously"

Submitted by Tyler Durden on 01/28/2011 16:03 -0500


Jim Grant, who will never be accused of being a fan of the Criminal Reserve, and whose views on what will happen to asset prices in a printer-happy world are gradually being validated, appeared on Bloomberg TV, telling Margaret Brennan upfront that Bernanke owes the world an apology.

 Alas, after various revolutions around the world have been catalyzed by Bernanke's policies, we have a feeling that ever more oppressed people will soon see the Printer in Chief as a patron saint of violent revolution, alas against crony regimes fully supported by the US (and hopefully the US will view it the same way when its time comes).

That aside, Grant's criticism of the Fed should really start to grate on the Chaircreature: "I think what would be very good for the Fed if there would be a confession, the Fed should confess that it has sinned grievously, and is in violation of every single precept of its founders and every single convention of classical central banking. Quantitative Easing is a symptom of the difficulties that the Fed has created for itself. The Fed is running a balance sheet which if it were the balance sheet attached to a bank in the private sector would probably move the FDIC to shut it down. The New York Branch of the Fed is leveraged more than 80 to 1. Meaning, that a loss of asset value of less than 1.5% would send it into receivership if it were a different kind of institution…The Fed is now in the business of manipulating the stock market."

Jim also has some very critical discussions on how the Fed never settles up on the $3.4 trillion in custodial debt on its books. As always, we can't get enough as more and more mainstream figures turn to bashing that biggest abortion of modern capital markets.



If you think the above is bad, watch this video


Then go to his site at:


By all rights you should read every word this man has to say, because then you will

be on your way to proving our government is the lowest form of vultures




January 29th, 2011 by



By James P. Harvey

Somewhere in the modern evolution of social morals, boredom became an epidemic and spread over the world like a light blocking dust storm and humanity became obsessed with stability destroying diversity. No longer content with ten laws to adhere too, humanity deserted into the abyss of freewill and pursued their own authority.

With this one irrational act, humanity cut their anchor to the only safe way to sail through the storms of life, and now risk not only redemption, but a life devoid of any stability or control. With their anchor gone it was not long until they lost their rudder and either crashed on the rocks, or wandered the endless sea and consumed all of their life sustaining provisions, then lost faith in a merciful God.

Suddenly, on the horizon there appeared a fleet of Global Bankers, and like sheep to the slaughter, the survivors climbed aboard and worshiped the sheep-skinned wolves for saving them from disaster.

Fast forward to the present, and we now have a government, and a society that is so full of contradictions that no one can live their life without breaking some unknown law, or know how to communicate with a stranger for fear of offending them. Common sense and logic is irrationally contradicted at home, in the family, at church, work, and especially in our government and academia. Let me itemize just a few that defy logic.


Preparing children to become intellectually developed adults, and responsible citizens.


Starting with the family, a child is born helpless and dependent on parents for their physical nourishment, intellectual and spiritual development, and personal safety. So what do the parents do? They drop the child off at a day care center with no idea of how and what these people are going to do or say that will impact the child for life. I call this a contradiction in parental responsibility and love for child. No one knows what this child will be exposed to from the staff, or the other children, and it is not yet capable of a rational discussion with it’s parents when it is disciplined for something considered normal in day school and taboo at home, so contradiction impedes the child’s intellectual development. The reverse situation may just as easily be the reason for the child’s confusion, as it knows not who is right. All kinds of confusing contradictions in the child’s early years will not contribute anything but apathy or rebellion toward learning. Space is not here available to make this a dissertation on how to prepare a child for more advanced learning, self discipline, and a hungry mind, but one thing is clear, and that is, most parents who have been lured into a two worker debt cycle are not qualified to assist in a child’s intellectual development. To win a race, one needs to get a good start!


A family that pray’s together, stay’s together.


How many times have you heard that and witnessed the opposite?  If a Church teaches that God loves everyone, so it does not matter what church you attend, and your neighbor say’s that God is a tyrant for allowing evil to exist, what do you expect a child will think of his God? Government controlled schools are actively preventing Christianity from even being mentioned on school property, while some of your child’s most respected teachers bring a prayer rug with them. Yet, everyone is supposed to love one another and treat each other as an equal. I beg to differ with this contradicting policy, not just because I am a Christian, but because it flies in the face of rational thought and is tearing families apart, which is the glue that binds society together. I can be a good neighbor to a Mormon, or any other denomination, but I will not allow their religion to affect my family. Once again it is irrational and contradictory to teach that red is also black, simply because both are colors. Theological contradictions destroy a family.


Contradictions abound in the work place and destroy productivity.


Whoever told you that two men could walk together, and not be agreed was probably kissing you on the back of your neck at the same time and for two to try and work together without being agreed, is non productive. A perfect example is for two ironworkers erecting a high-rise office building and one man thinks it is perfectly alright to sleep with the other mans wife. Do I need to tell you one will go in the hole? That’s an ironworkers expression for falling, not having sex. Diversity, no matter where or how you find it, creates contradictions that can, and does, get people murdered. It is not productive for two people to work together when something unacceptable is between them, or for the employer to deny a person their constitutional rights. If your employer fires you for not working over-time because your wife is giving birth, he has violated your right to life, liberty, and the pursuit of happiness, because your wife will kill you for losing your job. All joking aside, the contradictions in the work place are obscene, and it’s not always the employer, or the employee who is to blame. Consider the contradiction of the government imposing laws that take away a company’s ability to make a profit, and they go bankrupt.

Dear readers this subject of government contradictions is so far beyond anything rational it’s a waste of my time to write it and yours’ to read it. Surely, you can think of a thousand contradictions that both State and Federal Government impose on businesses, both large and small.


The results of socio-political contradictions in America.


In the beginning we were lied to about what kind of government we were given, and from repeating the lie generation after generation we came to accept it as truth and supported it with our lives and heart. Now, we must step back and compare what we have become, to the principals we were willing to die for. America, when judged by those principals is no different than a family who enjoyed prosperity so much, they became addicted to drugs and lost everything they loved.

A government that lies to its people is an intentional contradiction.

A government that robs from its people and gives to the elite bankers is an intentional contradiction. A government that organizes attacks on its people to gain support for killing other nation’s people is the most putrid of all contradictions. A government that intentionally puts its soldiers in harms way to gain support for robbing other nations of their resources is an intentional contradiction and then, not providing for its soldiers and giving the profits to the Global Bankers is another contradiction. A government that interferes with honest attempts to correct these contradictions by controlling the election process is nothing to be proud of, and any democracy is a contradiction when way over fifty percent of the people are forced to accept a corrupt bureaucracy that makes laws without being elected. Democracy, even with honest elections is a contradiction when the minority of the people has to suffer the tyranny of the majority, which I don’t believe has ever happened. By that I mean, honest elections! That America’s strength is in our diversity is the biggest contradiction of this century, because we are not just diverse racially, we have become diverse and divisive politically to the point of fracture. Obama is just one in a string of master dividers, and he does not lead this nation, because his policy is not his, it is his masters, the global banksters, and he would be murdered in a heart beat if he disobeyed. So would everyone in the house, senate, and judiciary. If you are not aware of this you have not been paying attention, or you have been blinded by your shinning new God called diversity. By the way, what does IT look like?

You who worship this contradiction are not fellow American’s, and you do not belong here, so this is what you are going to get.


Amos: 3, 3

James P. Harvey


January 27th, 2011 by


http://anationbeguiled.com/has served us well,

but the new site is going to be less fragmented subject

wise. We thank our many readers, and encourage all

of you to visit our new sister site at



This site will continue as before, and offer up a

wide variety of subjects and laughs for the folks

who like it that way.


James Olddog Harvey



An open Letter to the President of the United States

January 25th, 2011 by


25 January 2011

By James P. Harvey


Mr. Obama,

After seven years of studying the past and present activities of the United States government, international bankers, and easily frightened citizens who are always ready to support any and all unconstitutional preemptive wars, covert government coups, and saddle our future with enormous debt, I have a few questions only you can answer.

Now please don’t take this personally, because after all you are a human being and have the same depraved human nature as the rest of us, but as our Dear Leader don’t you have an obligation to be moral, trustworthy, and honest?

So, considering you and your predecessors have been more than willing to murder millions of people in wars that we both know are illegal, and the majority of our ignorant citizens have forgotten that government is not a deity or exempt from human morality and supported your decisions, why not consider being a man that will be loved and admired on a global level and call for a covert action on the Global Bankers and their satellite affiliates?

The C.I.A. spooks would love it, and consistent with your past executive orders it’s something you already approve of. Just fire up your executive power again, then capture and permanently detain them all and confiscate their assets! Consider for a moment what the personal assets of these people could do for America and the rest of the world. Hey bro, we’re talking great big bucks here!

Just think of what the world would be willing to do for you and your family. If one considers their past actions, they might be willing to make you a king. You could have a one world government and own it to boot!

Of course there are some concessions you would have to accept: such as never having authority over any nations’ militaries, judiciaries, or any kind of law enforcement. Other than that, you could receive all the pleasures and admiration the world has to offer, and there’s no telling what the sisters you allowed in the military would be happy and willing to do for you.

I know this sounds a little radical, but just think about it for a minute. Is a banker worth more than a little child, or how about all the young soldiers who died or came home with disabilities that destroyed their lives? Think of all the lost productivity and ingenuity these poor souls could have contributed to our country. Think about all the grief you have caused, and the money that you wasted.

Is being a slave to your money masters better than being a king? Hell fire bro, with considerable effort even I would love you!

Now I know your time is short what with Daley in charge now, so you don’t have to answer me right away, and I want you to give it your personal consideration anyway, maybe even talk it over with your family because I’m sure they would want to be Queens and Princesses, and since you are going to go down in history, why not do something good for a change? Then, I will proudly call you Mr. President!


Have a good day!

James P. Harvey  


If anyone objects to this letter, read the post below about China and do a little research on your own! If you can spend thirty minutes reading on America.gov without puking, you must be stone cold stupid, or a confirmed communist.

U S China Launch Public Private Partnership on Health Care

January 25th, 2011 by




U.S. Department of Health & Human Services
News Release
January 19, 2011

United States and China Launch Public-Private Partnership on Healthcare

Increasing collaboration in the healthcare sector

Washington, D.C. — Today, on the occasion of the State Visit of President Hu Jintao to the United States, the U.S. Trade and Development Agency (USTDA), the U.S. Department of Health and Human Services (HHS) and the U.S. Department of Commerce (Commerce) joined with China’s Ministries of Health (MoH) and Commerce (MOFCOM) to announce their support for the establishment a new public-private partnership in the healthcare sector.

Initially, twelve U.S. companies and six supporting organizations will participate in this partnership, alongside the supporting U.S. and Chinese Government agencies. The partnership will be organized around U.S. healthcare industry strengths and government capabilities in order to foster long-term cooperation with China in the areas of research, training, regulation and the adoption of an environment that will increase accessibility to healthcare services in China. Participating U.S. companies initially include 3M, Abbott, Chindex, Cisco, General Electric, IBM, Intel, Johnson & Johnson, Medtronic, Microsoft, Motorola, and Pfizer. Supporting organizations include AdvaMed, the Alliance for Healthcare Competitiveness, the American Chamber of Commerce in China, the American Chamber of Commerce in Shanghai, PhRMA and the U.S.-China Business Council.

“The economic and social development of any nation depends on the health and productivity of its people,” said HHS Secretary Kathleen Sebelius. “This partnership builds on a strong foundation of bilateral cooperation in this critical sector of our economies.”

USTDA Director Leocadia Zak stated, “This public-private partnership provides China an important private sector resource to draw from to help with key development issues, while also identifying for U.S. companies projects that have been designated priority development projects by China.”

Through programs supported by the initiative, Chinese participants will gain greater access to U.S. private sector expertise and ingenuity and better awareness of new technologies and results-oriented regulatory processes. Initially, these goals will be advanced through a USTDA-funded Healthcare Professional Personnel Exchange Program that will include a series of visits by Chinese healthcare officials to the United States to share best practices and witness new and innovative technologies that will be important to long-term healthcare delivery.

“The partnership will draw its strength from U.S. companies strategically working together to help China achieve its development goals that will open new export markets for U.S. goods and services,” noted Commerce Secretary Gary Locke.

Over time, the partnership will enhance cooperation in areas such as rural healthcare, emergency response, personnel training, medical information technology, and management systems; while also exploring ways to support other fields such as integrative and traditional Chinese medicine. These programs will enhance both sides’ knowledge of best practices, management, technological developments, and other healthcare-related topics

The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project planning activities, pilot projects, and reverse trade missions while creating sustainable infrastructure and economic growth in partner countries.

The U.S. Department of Health and Human Services (HHS) is the United States government’s principal agency for protecting the health of all Americans and providing essential human services, especially for those who are least able to help themselves.

The U.S. Department of Commerce has a broad mandate to advance economic growth and jobs and opportunities for the American people. It has cross-cutting responsibilities in the areas of trade, technology, entrepreneurship, economic development, environmental stewardship and statistical research and analysis. The Department also leads the President’s National Export Initiative, which aims to double U.S. exports by 2015 in support of several million American jobs.

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://www.america.gov)

Read more: http://www.america.gov/st/texttrans-english/2011/January/20110120160303su0.2723767.html#ixzz1C72MNsfm

Lawless America

January 24th, 2011 by

Lawless America





Supreme Court to issue Landmark Decision

on the Constitution

The United States Supreme Court will soon issue a landmark decision on the validity of the Constitution of the United States.


The Supreme Court will consider three petitions filed by William M. Windsor, a retired Atlanta, Georgia grandfather.


"The Questions Presented to The Supreme Court are:


1.Will The Supreme Court declare that the Constitution and its amendments may be voided by the federal judges in Atlanta, Georgia?


2.Should federal judges be stopped from committing illegal and corrupt acts to obstruct justice and inflict bias on litigants?


3.Will The Supreme Court be afraid to disclose the corruption in the federal courts?


Windsor has been involved in a legal action in the federal courts in Atlanta since 2006. Windsor was named as a defendant in a lawsuit in which the President of the Plaintiffs, Christopher Glynn of Maid of the Mist in Niagara Falls, swore under oath that Windsor did a variety of things including the crimes of theft and bribery.  Windsor stated under oath that Christopher Glynn made it all up and lied about absolutely everything that he said.  Windsor then obtained deposition testimony from Christopher Glynn and the other managers of the Maid of the Mist boat ride in Niagara Falls, Timothy P. Ruddy, and Robert J. Schul. Glynn, Ruddy, and Schul admitted, under oath, that the charges against grandfather Windsor were not true.


Despite this undeniable proof, federal Judge Orinda D. Evans declared that Grandfather Windsor should not have fought the lawsuit, and she forced him to pay over $400,000 in the legal fees of the admitted liars of Maid of the Mist.  Grandfather Windsor appealed to the United States Court of Appeals for the Eleventh Circuit, and federal judges Joel F. Dubina, Frank M. Hull, and Peter T. Fay rubber-stamped Judge Orinda D. Evans' ruling.  Grandfather Windsor then took his appeal to The United States Supreme Court where The Supreme Court said the appeal was not worthy of their consideration.


William M. Windsor filed a lawsuit against Judge Orina D. Evans and others in Atlanta federal court to have the actions of the courts set aside due to fraud upon the courts.  In an assortment of orders and appeals, Windsor charges that the federal courts and nine federal judges violated the Constitution, the Due Process Clause, and the First, Fourth, Fifth, Sixth, Seventh, Ninth, and Fourteenth Amendments to the Constitution of the United States.


Grandfather Windsor has discovered that, at least in Atlanta, Georgia, the federal courts operate like a police state in which the judges are all-powerful, committing criminal acts from their benches high above the courtrooms and violating the Constitutional rights of tens of thousands of parties who have the misfortune of appearing in their courts. The dishonesty and corruption seems to be especially bad with those who represent themselves in court, a percentage estimated at over 35%.


After finding nothing but corruption at the federal district courts and the court of appeals, the grandfather of three has tossed the hot potato right square in the laps of the justices of The United States Supreme Court. By filing Petitions for Writs of Mandamus rather than an appeal, The Supreme Court is forced to deal with the issue. And the fundamental issue is whether the corruption extends all the way to the top. Is The United States Supreme Court corrupt, too?


Grandfather Windsor hopes for the best but fears for the worst: "I hope The Supreme Court is decent, honest, and cares about the Constitution and the citizens of the United States. However, I am sorry to say that at this point, I suspect the corruption goes all the way to the top. My charges have been totally ignored by the United States Attorney's Office, the FBI, and Congress. I have said to The Supreme Court that the issues I have presented take up a lot of paper, but it can all be boiled down to one question:


'Is The United States Supreme Court prepared to stop federal judges from functioning like common criminals? If they care about decency, honesty, the law, the Constitution, and due process, they will act to stop it. If they aren’t prepared to expose the corruption, they will deny the Application.'"


Windsor says, "If the Supreme Court fails to act against these federal judges, the citizens of the United States need to know that there is not a shred of decency, honesty, or Constitutional rights in our federal courts. Corruption has consumed the federal court system, and we now live in a police state. Judges are free to do absolutely anything they want. Our laws are meaningless. Your life savings can be stolen by a federal judge, and they have no risk in violating every law in the books."


The Supreme Court should render its decision before the end of the year. It's one retired grandpa against the United States government. May the best MAN win!



The U S Constitution is VOID

FORWARDED 01 20 11 – contact: becworks@gmail.com

NOTE:  Okay, now the cat is out of the bag .. . we actually have a CON-Institution. . and judges know the truth.  I suggest that before anyone "rises up" as is suggested in the article, that you do a lot of homework.  You need technical legal sources, and not history books.  I can get you started, but The Informer must carry you all the way to the end .. he did his homework.

READ the article below, and the Interrogatories here:
Part 1 – http://webpages.charter.net/jlgates/iatcaal-part1.html
Part 2 – http://webpages.charter.net/jlgates/iatcaal-part2.html
Part 3 – http://webpages.charter.net/jlgates/iatcaal-part3.html
Part 4 – http://webpages.charter.net/jlgates/iatcaal-part4.html
Part 5 – http://webpages.charter.net/jlgates/iatcaal-part5.html
Part 6 – http://webpages.charter.net/jlgates/iatcaal-part6.html

U.S. Supreme Court Issues Landmark Decision: Constitution is Void

ATLANTA,Jan. 18, 2011 /PRNewswire-USNewswire/ The U.S. Supreme Court issued a landmark decision that serves to allow judges to void the Constitution in their courtrooms. The decision was issued on January 18, 2011, and the Court did not even explain the decision (Docket No. 10-632, 10-633, and 10-690) One word decisions: DENIED.

Presented with this information and massive proof that was not contested in any manner by the accused judges, at least six of the justices voted to deny the petitions:

"There is no legal or factual basis whatsoever for the decisions of the lower courts in this matter.  These rulings were issued for corrupt reasons.  Many of the judges in the Northern District of Georgia and the Eleventh Circuit are corrupt and violate laws and rules, as they have done in this case.  The Supreme Court must recognize this Petition as one of the most serious matters ever presented to this Court."

The key questions answered negatively by the U.S. Supreme Court was:

"Whether federal courts must be stopped from operating corruptly and ignoring all laws, rules, and facts."

By denying the petitions, SCOTUS has chosen to sanction corruption by federal judges and to allow federal judges to void sections of the Constitutional at will.

William M. Windsor has been involved in legal action in the federal courts in Atlanta since 2006 Windsor was named a defendant in a civil lawsuit (1:06-CV-0714-ODE) in which Christopher Glynn of Maid of the Mist in Niagara Falls, swore under oath that Windsor did a variety of things including the crimes of theft and bribery. Windsor stated under oath that Christopher Glynn made it up and lied about absolutely everything that he swore. Windsor then obtained deposition testimony from Glynn and the other managers of the Maid of the Mist boat ride, and they admitted, under oath, that charges against Windsor were not true.

Despite this undeniable proof, 32-year federal Judge Orinda D. Evans declared that the grandfather of three should not have fought the lawsuit, and she forced him to pay a fortune in legal fees of Maid of the Mist. Windsor appealed to the U.S. Court of Appeals for the Eleventh Circuit, but federal judges Dubina, Hull, and Fay rubber-stamped Judge Evans' ruling. Windsor then took his appeal to the U.S. Supreme Court where the justices said the appeal was not worthy of their consideration (cert denied).

After attempting to get the case reopened with new evidence that proved fraud upon the courts and obstruction of justice, Judge Evans and Judge William S. Duffey committed a variety of crimes and violations of Constitutional rights, as did judges with the Eleventh Circuit All of this was detailed for the Supreme Court.

Windsor says: "I have discovered that the federal judges in Atlanta, Georgia, Washington, DC, and the justices of the United States Supreme Court function like common criminals intentionally making bogus rulings against honest people while covering up the crimes of their fellow judges. I have been contacted by people from all over the country and around the world with their stories of judicial corruption with judges all over the U.S.

"My charges have been totally ignored by the United States Attorney's Office, the FBI, and Congress. I do not believe there is a shred of decency, honesty, or Constitutional rights in our federal courts. In my opinion, we now live in a police state. Judges are free to do absolutely anything they want. Our laws are meaningless. Your life savings can be stolen by a federal judge, and they have no risk in violating every law in the books.

"In my opinion, this is the most serious issue that our country has ever faced. Our rights have been stolen. and the mainstream media refuses to cover this story because they are afraid of the judges.Heaven help us.

"I believe our only hope in America is if the masses become aware of what is taking place.. I am writing an expose, and my book will be available at Borders, Barnes & Noble, and on amazon.com soon. The publisher will decide if the title is,               Lawless America or Screwed, Glued, and Tattooed."

For more information, see www.LawlessAmerica.com.

Contact: William Windsor, +1-770-578-1094, bill@lawlessamerica.com

SOURCE William M. Windsor






Killing Politicians

January 23rd, 2011 by

Killing Politicians


By Larken Rose

A story is now circulating around about a Massachusetts blogger who, regarding the shooting of Gabrielle Giffords, said "one down, 534 to go" (referring to the total number of federal congress-critturs in the House and Senate). He also added that it is "absolutely unacceptable to shoot indiscriminately," and suggested that people "Target only politicians and their staff and leave regular citizens alone.

Of course, the average citizen, who worships the ruling class as if they're a bunch of infallible deities, will think the blogger to be the lowest scum in the world. How dare he even discuss killing the High Priests of the cult of "government"? What blasphemy! Well, I want to take issue with the guy's comments, but for a very different reason.

(As an aside, what the guy said was protected speech under the First Amendment. Not that what any "court" says is actually legitimate, but the U.S. dress-wearing, god-complex "judges" have admitted that even advocating revolution or violence is protected, unless it constitutes either an actual threat, or a direct, specific incitement for someone to commit violence. Look up the Supreme Court case of Brandenburg v. Ohio, for an example of just how nasty speech can get before it can be considered "criminal"–again, within the definitions of the control freaks. The fact that the Massachusetts jackboots decided to steal the blogger's guns because of his comments is an obvious attempt to create a "chilling effect" on his political expressions.)

Many people like the mantra, "Violence is never the answer." But they're wrong. If an armed thug breaks into your house, and tries to kill your family, violence is the answer. If you were a Jew living in 1940's Germany, and the SS came knocking, violence would be about the best answer available.

Ironically, most of those who say "violence is never the answer" nonetheless advocate constant, widespread violence via "government." They don't recognize it as such, because in their minds, when "government" uses the initiation of violence, it is inherently legitimate, and doesn't count as violence. Meanwhile, defending against such "legal" aggression is, in the eyes of the indoctrinated statist, the most horrible sin imaginable. When the superstition of "authority" is involved, the attacker with a badge is the good guy, and the defender without a badge is the bad guy.

So why do I disagree with the blogger? Let me put it this way: if killing 535 god-complex politicians would result in an end to the many thousands of casualties caused by their war-mongering, it would be just fine with me if someone killed them.

But it wouldn't.

If knocking off Congress would end the draconian, fascist, heinously evil "war on drugs," and free the millions of non-violent people now living in cages, I would be all for it.

But it wouldn't.

Every year, a whole lot more than 500 innocent people die as a direct result of what the politicians do, so I think such a trade would be well worth it. In short, if killing the tyrants du jour would lead to freedom, I'd be all for it.

But it wouldn't.

Why not? Because the gang of thieves and murderers that infests Washington is a symptom of the problem, not the problem itself. The underlying problem resides between a couple hundred million pairs of ears. If the general public desperately believes that a coercive ruling class is necessary and essential to civilization, as they have been brainwashed to believe, then knocking one narcissistic megalomaniac off the throne will only result in a new one taking his place. It's like the mythical Hydra: chopping the heads off doesn't do anything, because it will grow new ones; you need to hit the heart of the beast. And the heart of this problem is not a person, or a group of people, but a belief.

I'm not saying it's never justified to hack off a tentacle here and there, if you're being attacked. I can think of lots of situations in which "law enforcers" deserve to be shot, and "criminals" deserve to escape (when the "law," not the "criminal," is the aggressor). That might save one person now andthen, but hacking at the branches will never solve the problem; only yanking the root out can do that.

And even among many of the most ardent pro-freedom advocates, the root of the problems is still firmly planted inside their own heads. Those who continue to campaign, and vote, and petition "government" to change its evil ways, are completely missing the real problem. To get slightly mystical, let me put it this way: Chances are, you are the one feeding the horrible beast you see before you, the monster you seek to destroy; you helped bring him into being, and you are the source of his power.

Hmmm … I think rather than explaining what I mean, I'll leave people hanging, and tell them to buy my new book, "The Most Dangerous Superstition." (Yes, that was a cheap trick, but I'm not sorry.) 


During my learning curve there was a time when I would have supported Anarchism, and in my ignorance I would have supported killing a hell of a lot more people than just the politicians. However, I’m now maybe twice Larken’s age, or more, and just a little bit more knowledgeable on human nature. Due to humanity’s depraved nature, society would self destruct, and on a National level no other Nation would recognize a country without a government and we would be unable to defend ourselves. Anarchism is a utopian brain fart that would escalate the enslavement of the weak, and any organization that formed to protect itself would in fact be a government. EVIL DOES EXIST, and until it does not, humans will not be able to govern themselves. Let history be my defense!!!!!!!!!!!!!!!!!!

In order to have, or construct a compromise, we would need a group, body, or whatever, to be educated on the historical problems of humanity’s attempts to control evil and the necessity to use acceptable force in the process. There is no other way to control people absent a Godly Nature, and the Lord God is in the process of proving that. Human beings will never have peace or prosperity with or without any government other than the KING of KINGS: the LORD JESUS CHRIST. GO AHEAD AND PROVE ME WRONG!   FOOLS!

What We Must Do

January 22nd, 2011 by


Alan has been one of my favorite research commentators for years, and his web-site is a store-house of information. Its purpose is to give Americans the opportunity to examine and comment on issues affecting how we are governed.  

Go to http://www.constitutionforum.us/

This article is from the previous administration, and the only difference between it and the present one is skin color as far as I can see. Bush and Obama are both ideological brothers’ in power greed. For the uninformed, this article is a classic, and should be printed and distributed door to door.

What We Must Do

By Alan Adaschik

The thing most feared by our Founding Fathers was the gullibility of the masses whereby a demigod or group of demigods cater to and capitalize upon commonly held misconceptions and fears and lead the Nation down a path that is not in our best interest. The end result being that the actions taken are of benefit only to the ruling elite at our expense. In the United States of America today, this fear of our Founding Fathers has been realized. Our government no longer abides by the most important and key provisions of our Constitution and only pays lip service to what remains to make Joe Blow citizen think he or she is free and living a democratic society.

The problem faced by those who see through the hypocrisy is that most Americans are not aware that a problem exists. The reasons for this are that they lack the intellectual capacity to figure things our for themselves, they fail to understand that our own government can be our biggest threat and worst enemy, and because things have degenerated so far in our society that the economic well-being of far too many citizens and institutions are dependent upon government largess and subsidies. In other words, our government has deteriorated to the point where it bribes us with our own money and as a result, Americans view Uncle Sam as a benevolent sugar daddy irrespective of constitutional concerns and whatever wrongful and deplorable activities the government is up to behind our backs.

For all the above reasons, reform and change is just about impossible and if our Founding Fathers suddenly appeared on the scene today, to a man, they would be reaching for their muskets and rising up against what they would surly view as a corrupt, oppressive, and out of control government. Unfortunately, in the United States of America today, such action would be foolish, counter productive, and suicidal. Beyond this, it would also mean the useless and unconscionable slaughter of far too many innocent people. Armed rebellion or insurrection is not the answer and if the reform movement is to succeed, it must rid itself of those prone to violence or those who would urge others to violence. To be sure, any illegal action taken by those who profess to be a part of the reform movement will work against our cause and be used by those who oppress us to their advantage. 

If reform and changes of substance are just about impossible, what can we do to save ourselves? The road ahead is tough and arduous but with determination, and persistence we can succeed. The primary weapons available in our war to win the minds and hearts of the American people are education, demonstrations, and marches on Washington, passive resistance, and civil disobedience. Of these, education is the most important because it is the key to the success of the other tools. Most Americans still subscribe to the principles of governing held by the Founders and enshrined within our Constitution. The problem is that they are so brainwashed that they are not able to see our government for what it really is and even if they do, most think there is nothing that can be done to rectify the situation. Education is the key to solving these problems. We must deprogram the citizens of this Nation such that they stop being good Republicans or Democrats and start being good Americans.

 Our government no longer operates by or cares about reason, logic, common sense, truth, legalities, our Constitution, the best interests of citizens, or America itself. Therefore, the only thing that will get their attention is the force of numbers behind an aroused citizenry. The only possible way of increasing our numbers is by waking up the sleeping majority through education. Educating people will bring more citizens into our camp and this will make all the other weapons in our arsenal more effective. If enough of us are alarmed by the same concerns and act decisively to air them, the media will no longer be able to ignore us. Once we get media attention, we will have everyone else’s attention and this will herald the end of the despotism, which we now endure. Conspiracy, subterfuge, and deception cannot thrive in sunshine and with daylight illuminating the hidden agenda of our oppressors it will crumble and wither because there is nothing that supports their agenda other than the lust for power and petty self-interest. 

A true American realizes and believes that government is a necessary evil which left unchecked will become our master and not our servant. He or she also knows that a political party is nothing more than a special interest group whose primary motivation is self-perpetuation. For a political party to be successful, it takes money; lots of it. When dollars control a political party’s agenda, then that agenda will not be what is best for this Nation. Therefore, a true American never puts loyalty to a political party above governing principles and the Nation’s interests.

People who do and vote strictly along party lines are not only fools but un-American as well. It is these blindly loyal people who allow a political party to pursue its own interests at the expense of the rest of us. True Americans know that the power of government is derived from the consent of the governed and that the interests of individual citizens are far more important than the interests of those pledged to serve us, including the President. Finally, a true American believes our rights are given to us by a higher authority and that no government has a legitimate power to subvert or take them away. 

Unfortunately, in American today, while most of us still understand what it means to be an American, the majority has no clue about how our government views what we consider to be obvious and fundamental. Not one of the principles identified above is subscribed to or respected by those who lead us. They believe that they are our master and not our servant, that the interests of the Democratic and Republican parties are more important than those of any other citizen or group of citizens, that government is all powerful and should exercise that power irrespective of principle, our Constitution, the rights of citizens, or the Nation’s best interest. 

To be sure, our situation is such today that our leaders ignore the principles of sound governing which define Americanism and has relegated human rights to something, which they only allow if it is convenient. Furthermore, as incredible as it sounds, the morally and intellectually bankrupt criminals who pull the strings that our elected representatives dance to are now in the process of dissolving this nation and melding us into a new one, more to their liking, where their power and control will be pervasive, universal, and unassailable. In other words, the future that those in power have in store for us is one of servitude and slavery where we will be beholden to and dependent upon them from cradle to grave. This is not just conjecture, but irrefutable provable fact. If you believe otherwise, then you are uninformed, brainwashed, delusional, and part of the problem and not the cure.  

The time to take action is now. Those of us who can still think for ourselves must take every opportunity to communicate our dire circumstances to our fellow citizens and we must do this with a fervor that borders on fanaticism. Our best tool of communication is the internet, but many sleeping Americans, for the reasons previously enumerated, avoid and dismiss patriotic web sites as been subversive and un-American. This is why spreading the word through direct contact and networking is so important. George Bush “The Decider” is our best asset in this regard. People are fed up with his war, his incompetence, and the gross and flagrant corruption of his administration. Therefore, they are now more receptive to our message than ever before. Furthermore, it is hard to dismiss someone personally known to us as being out of touch or unwittingly working against the best interests of our Nation. 

Other important ways of reaching people are through presentations, discussion groups, and videos. Those of us with such talents and capabilities must begin to utilize these talents to the fullest. America can be saved, but it has to be accomplished at the grass roots level. The corrupt and totalitarian criminals who control our government have ensured that those sympathetic to their nefarious designs hold key positions in most institutions throughout society including the mainstream media, our colleges and universities, and the judiciary. Despite this, if we act now with determination and commitment, the ripples of discontent that are presently evident throughout our Nation will grow into a tidal wave that will eventually sweep away our oppressors including those who know better, but for a few pieces of silver, have sold their soles to the Devil and abandoned this nation and its people to the wolves of world commerce.   

All Governments rule by force, but ours is supposed to rule by the consent of the governed. The present government of the United States is a cabal of traitors and criminals, which no longer has my consent to govern me. Many Americans share these sentiments, but we can do little about our dismal state of affairs unless our numbers grow into a clear majority. When that happens, we will have the power and authority to remove from government those who serve themselves instead of us. My sincere hope is that this will be a peaceful process and those of us in the vanguard of this movement must make every effort to ensure that it is. If it is not, then all is lost and those who oppress us will have won.

Alan Adaschik

OldDog says’,

“it is good to seek peace and justice, but it is far better

to be prepared while doing so.”

The U.S. & China going in opposite directions

January 20th, 2011 by


The U.S. & China going in opposite directions

By Julian D. W. Phillips


China is in the midst of a ‘State visit’ to the U.S. but this time China will get a state banquet. This implies a changed attitude to China by the U.S. It is clear to all today that there is unlikely to be a real confrontation between the two nations anymore. If there were to be a war between the two it is most unlikely to be an economic/financial one, not a military one. China is racing to be the number one economic world power and the U.S. is retreating from that position, slowly but surely. Each day, the power of the U.S. to dominate or even influence China falls slightly. Each day the power of China to influence and eventually dominate the global economy grows. At this moment in time China owns around half of U.S. Treasuries. They are already in a position to hurt the U.S. very badly, should they want to. But it is not in the interests of China to do that. China is empire-building and doesn’t want to be distracted from that. They appear to be on a winning road already. China’s is on the rising road and will soon pass the U.S. going the other way.

The reality of China and the U.S.

Last week we published an article on the advent of the Yuan as a global reserve currency. We believe this event is the most significant event to appear on the global monetary scene. It overshadows the Eurozone debt problems because it will change the monetary world significantly. We don’t believe for one second that the euro will collapse. The euro will receive considerable investment from China overtime at a time when it is needed most. China realizes that as an alternative to the U.S. dollar, the euro is needed in the global monetary system. By investing in the world’s two most powerful trading blocs, China is gaining a foothold that may well swing the [financial] balance of power towards itself, in time. Neither of these two blocs will be able to do without China’s investments shortly. Such dependence protects China as much as it weakens the Eurozone and the U.S.

As to the threat of military action from either side, we believe that China will not even move towards a confrontation. Tacit support for South Korea and a withdrawal of support for North Korea against a considerable softening of U.S. support for Taiwan may well be discussed in the visit of China to the U.S. Any confrontational moves may well be softened by the use of the United Nations as a mediator. The battle for power will be limited to the international trade and monetary scenes, we believe.

Will the Yuan appreciate? Senior U.S. Senators are again threatening to legislate against China’s ‘management’ of the yuan. By now most of us see this as a display of testosterone and unlikely to sway China in the least. Chinese wages have to move to the same level as those of the U.S. [whether by falling wages in the U.S. or rising wages in China] before international trade is on a level playing field. A change in the exchange rate of the yuan to the dollar is not likely to dent China’s global trade competitiveness one iota. China has made it clear there will be no change in its stance. As we pointed out in our last article we expect to see a sufficient quantity of Yuan sent into world markets from China to hold it steady or weaken in a ‘free float’. It is part of a very large global strategy unfolding now. To those who doubt this, ask yourself, “If Chinese exporters price their goods in the yuan or even in the other global currencies, what will happen to the dollar?”

How will the Yuan affect Gold For a number of years now, China has been developing its gold market. Huge precious metals warehouses are now situated in Hong Kong next to its very efficient Airport there. Recently China expanded the number of gold importers permitted to import gold to China. China’s banks have developed gold distribution centers throughout the major cities of China. The Chinese public can see the benefits of owning gold by the price rises it has seen in the gold price over those years. The government itself is accumulating its own local gold production as well as encouraging its citizens to buy gold. If there was any intention of re-valuing the yuan, then the Chinese public could well see this as a betrayal of investors by the government. No, we have no doubt that we will not see a rising yuan. We have stood by this forecast for the last two years, in the face of foreign pressure on the yuan to rise. Instead, we continue to expect the gold price to perform, in the yuan, much as it does in the U.S. dollar now. For that reason and because of the ongoing development of China and the growth of a huge middle class in China, for the foreseeable future, we see a steady growth in the rise of gold investments in China.

William J. Murphy III is the Chairman of the Gold Anti-Trust Action Committee and owner of www.LeMetropoleCafe.com. A graduate of the School of Hotel Administration at Cornell University in 1968, he went to become a starting wide receiver with the Boston Patriots of the American Football League. Mr. Murphy, who now resides in Dallas, Texas, spent much of his business career in the Futures Industry with such firms as Drexel Burnham and Shearson Hayden Stone. Today, he writes gold market commentary for his financial web site that features the precious metals and contrarian economic analysis.

Copyright 1999 – 2011 LeMetropoleCafe.com
All Rights Reserved

There Is No Business Like The Bond Business

January 19th, 2011 by

There Is No Business Like Bond Business

Wednesday, January 19, 2011 – by  Dr. Antal Fekete

Dr. Antal Fekete

Front-Running the Fed in the Treasury Market

For some nine years I have been predicting that the economy is going to a recession morphing into a depression, using a purely theoretical argument. The essence of my argument is that the open market operations of the Fed cause a protracted decline in interest rates which is responsible for the hard-to-detect capital destruction affecting the financial sector no less than the productive sector. The immediate cause of the depression is the destruction of capital. The ultimate cause is the monetary policy of open market operations. The chain of causation is as follows.

(1) Open market operations (in effect, net purchases of T-bills) by the Fed are predictable. They invite bond speculators to take risk-free profits offered by this fact of predictability.

(2) Bond speculators buy the long-dated Treasurys and sell the short-dated ones, to pocket the difference in yields. These straddles represent borrowing short and lending long. As such, they are inherently risky. However, Quantitative Easing takes the risk out by making the odds, that the normal yield curve will invert, negligible.

(3) The bond speculator faces the problem of having to roll forward the fast-expiring short leg of his straddle by selling T-bills. The extraordinary funding and refunding requirements the Treasury is facing, and the extraordinary pressure on the Fed to increase the money supply combine to make it ultra-easy for the bond speculator to move both the short and the long leg of his straddles as he sees fit.

(4) The upshot is that interest rates keep falling along the entire yield curve. Regardless how many long-dated issues the Treasury offers, bond speculators snap them up even before the ink is dry on them.

Here we have the solution to the Greenspan-conundrum: the sky is the limit to the bond speculators' appetite for Treasury paper. They are all right as long as they can sell T-bills against them. But as the sky is the limit to the Fed's appetite for T-bills, both flanks of the speculators are secure.

In my other writings I have explained how a prolonged fall in interest rates along the yield curve brings about depression through the indiscriminate destruction of capital in the productive as well as financial sector.

There is a vicious spiral: the more currency the Fed creates, the more risk-free profits bond speculators will reap, contributing to a further fall of interest rates.

This outcome is the exact opposite of the one predicted by monetarism. The latter predicts that the new money created by the Fed will flow to the commodity market bidding up prices there, to nip depression in the bud. Bernanke & Co. fully expects this to happen. This is not what is happening, however. The new money refuses to flow uphill to the commodity market. It flows downhill to the bond market where the fun is. Why take risks in the commodity market, the speculators ask, when you can gamble risk free in the bond market? So grab the money, buy more bonds and sell an equal amount of bills. As a consequence of bullish bond speculation interest rates fall, prices fall, employment falls, firms fall. The squeeze is on, bankrupting the entire economy.

Official Check-Kiting

Some might object that the Fed could short-circuit the process and undercut the bond speculators' lucrative business. All it has to do is to buy the short-dated paper directly from the Treasury. Inverting the yield curve will shake off the parasites. My answer is that there is no danger of this happening. The Treasury and the Fed know that bond-vigilantes watch what they are doing like a hawk. Any hanky-panky of direct sales of T-bills by the Treasury to the Fed would make them cry "foul play!" As indeed it would be: direct sale of Treasury paper to the Fed would degrade the dollar from irredeemable currency to fiat currency. There is a subtle difference, realized only by the few.

Fiat currency is worse. Its arbitrary augmenting is decided behind closed doors. It does not need the endorsement of the open market. Fiat currencies have a short life-span as they readily succumb to the sudden-death syndrome. Irredeemable currencies are different from fiat in that they are created openly, using collateral purchased in the open market. They have a more respectable life-span. As long as the official check-kiting conspiracy between the Treasury and the Fed remains hidden from the general public, irredeemable currency may even prosper. Direct sale of T-bills by the Treasury to the Fed would tear down the curtain that hides the fact of check-kiting.

The mechanism of check-kiting is as follows. The Treasury issues debt which it has neither the intention nor the means ever to repay. This debt is used as "backing" for Federal Reserve notes and deposits, which the Fed has neither the intention nor the means ever to redeem. When the Treasury debt matures, it is paid in Federal Reserve credit issued on the collateral security of new Treasury debt. When Federal Reserve credit is presented for redemption, the Fed offers interest-bearing Treasury debt in exchange. This is a shell game and it exhausts the definition of check-kiting. Neither the Treasury debt, nor the Federal Reserve credit is issued in good faith. Neither is redeemable any more than Charles Ponzi's tickets were. They are both issued in order to mesmerize a gullible public, much the same way as Ponzi did.

Treasury and Fed officials know their history. They are familiar with the fate of the assignat, the mandat, the Reichsmark, not to mention the Continental. They know that no fiat money ever survived "the slings and arrows of an outrageous fortune". Their only hope is that the fate of the irredeemable dollar, as predicted by Friedman, would be different. They would not embark upon an adventure in monetary policy involving direct sales of T-bills by the Treasury to the Fed. If they did, surely this would be the end of their experiment. Foreigners as well as Americans would start dumping the dollar unceremoniously, and buy anything they can lay their hands on. This is variously known as flight into real goods, Flucht in die Sachwerte, crack-up boom, Katastrophenhausse. I purposely avoid using the term hyperinflation as it connotes with the Quantity Theory of Money, which is not really a theory. It is a linear model trying to explain non-linear phenomena.

Falsecarding by the Fed

There is also a second method by means of which bond speculators are making risk-free profits. They "front-run" the Fed in the bill market. This means that, through inside information or otherwise, they divine when the Fed has to answer "nature's call" and must make the next trip to the open market in order to buy the collateral without which it cannot issue more money.

Bond speculators forestall the Fed by purchasing the bills beforehand, thus driving up the price. Then they turn around and dump the paper into the lap of the Fed at the enhanced price, making a risk-free profit. This process is called "scalping", after the kindred activities of small-time speculators in tickets for the World Series and other popular sporting events.

The objection that the Fed knows how to throw bond speculators off scent by various stratagems – for example, through falsecarding, say, by selling when speculators would expect it to buy – can be safely dismissed. There is no question that every year the Fed is a big buyer of bills on a net basis. If it sells, it has to buy that much more later on. Fiddling means that the Fed may miss its target. Falsecarding may backfire.

The speculators are a smart lot, thanks to "natural selection" culling the rank and file. They risk their own capital, which they stand to lose if they place the wrong bet. Once their capital is gone they are out, and smarter guys will take over. Hired hands at the Fed are no match for them as far as brightness and adroitness is concerned. The latter work for salaries. If they make the wrong bet, losses will be replenished by dipping into the public purse. Think of the losses the Bank of England suffered at the hand of a lonely bond speculator, one George Soros. The British public was forced to swallow the loss, and Soros was allowed to run with the loot and boast in his book that he has busted the Bank of England single-handedly. Recently Soros said in Davos that he is bearish on gold. In his opinion gold is in a bubble. Of course. He knows that he couldn't bust the Bank of England again, once it is back on the gold standard!

Cheating in Las Vegas

My voice has remained a cry in the wilderness. Nobody paid attention to the mumblings of this armchair economist.

My idle theorizing got an unexpected boost from the website Jesse's Café Américain. On January 22, 2010, Jesse posted a story with the title Front-Running the Fed in the Treasury Market from which the following quotation is taken:

Attached is some information from a reader. I cannot assess its validity, not being in the bond trading business. But it does sound like someone has tapped into the Fed's buying plans to monetize the public debt and is front-running those purchases, essentially ‘stealing' money from the public. It's what they call a ‘sure thing'. To try and figure out who might be doing it, I would look for some big player who is showing extraordinary returns on their trading, with consistent profit that is not statistically ‘normal', but is consistently ‘too good'. The problem with cheaters is that they sometimes get greedy and call attention to themselves. In Las Vegas the bigger cheats at the casino were often taken to the desert for further questioning and final disposal. On Wall Street they are more arrogant and persistent, defying resolution with that ultimate defiance, "We'll just have to figure out other ways to cheat, and come back again".

Time for a trip to the desert?

Here are my reader's observations from the bond market.

"I used to work for a BB on a prop desk until the financial crisis took hold and they fired the less senior guys. I now trade US Treasurys for a small prop firm in xxxxx, to scalp basis trades in most on-the-run securities. Occasionally, I will also take position in the repo markets for off-the-runs if I see something ‘mispriced'. Your recent article piqued my interest because we, too, have noticed ‘shenanigans' of a sort in the Quantitative Easing program involving US Treasurys.

"What we have noticed, especially in smaller issues like the 7 Year Cash, is that before a Fed buy-back would be announced, the price would pop significantly as if buyers would run through all the offers on the two major electronic exchanges (BGC Espeed and ICAP Broker Tec). This has occurred more than several times as the 7 Year Cash would be overvalued both by its BNOC, by as much as 20-30 ticks, as well as by its value relative to similar off-the-runs. These buyers would lift every offer they could, driving the price substantially above its ‘value', sometimes for as long as a week at a time. After this buying occurred, the Fed would announce the purchase of that security, sometimes a handle above its approximate value. This ‘luck' has occurred not just in the on-the-run 7 Year sector, but also in the 30 Year Cash, 3 Year Cash, and in several other off-the-runs. Again, it was especially prevalent in the less liquid Treasury products. Often the ‘appetite' for these securities would begin two weeks before the official Fed announcement. The buying was well-orchestrated and done in such a way as to throw it out of kilter with the like cash Treasurys and the CME Ten Year Contract. If you examine the charts of some of the selected buy-backs before the official announcement, you will see a similar occurrence.

"While I haven't broken this down into a paper to prove it (and I see nothing positive coming out of contacting the ESS-EEE-SFE about this issue), I can assure you that it was occurring on a consistent basis across the entire curve. A certain issue would be bid up substantially above market value (as determined by several metrics), only to be gobbled up later by the Fed at an unreasonably high price. These players must have substantial pockets as we, the small guys (but with a decent capital base) would take the other side of what seemed to be an obvious fade. While this did not occur in every issue of the Quantitative Easing program, it occurred often enough to be obvious to any knowledgeable observer.

While I am not sure that this can be attributed to a purposeful Fed policy or someone at the Fed talking to his pals, I am certain that it transpired."

Congenital Disease of the Monetary System

The anonymous correspondent of Jesse is looking for an answer in the wrong direction. Cheating is not necessarily involved. What he has observed need not be a purposeful, if veiled, Fed policy, nor is it necessarily someone at the Fed tipping off his brother-in-law at a brokerage house (however valuable the tip may be).

What we face here is a congenital disease of the irredeemable dollar. Open-market operations is the tool for the purpose of increasing the money supply through monetizing government debt as needed. It should be recalled that open-market operations by the Fed were illegal according to the Federal Reserve Act of 1913. The original Act looked at the monetization of government debt as ananathema. Illegal open-market operations started in the early 1920's. They were legalized ex post facto in 1935 by an amendment to the Act, after the gold standard was destroyed by the proclamation of president Roosevelt in 1933. Those who sponsored the amendment were ignorant of what effect open market operations would have on bond speculation. Economists in and out of government and academia were equally ignorant. The financial press also failed to criticize the hare-brained scheme of open market operations making, as it did, profits from bond speculation risk free.

There is no need to look for a conspiracy in the bond market. It is quite possible that a large number of smart speculators, acting spontaneously and independently of one another, have come to realize that there is a bonanza, perfectly legal, in ripping off the public purse. Of course, they kept their own counsel.

If anybody is responsible for this colossal blunder of economics releasing the genie of risk-free speculation out of the bottle, the names that come to mind are those of Keynes and Friedman, resp. They invented, resp., ‘improved', the system of floating exchange rates assuming a goldless currency that has to be arbitrarily augmented from time-to-time through the monetization of government debt (that, incidentally, proliferated profusely after the politicians deliberately unbalanced the budget upon the explicit advice of Keynes). The rest, as they say, is history.

As long as budget deficits were ‘modest', the activity of speculators making risk-free profits in the bond market escaped public attention. With the advent of ‘Quantitative Easing' and mega-deficits, everybody sitting at a bond-trading desk can see it. The figures literally jump off the screen, as explained by Jesse's blog.

Recruiting a Corps of Shills

To be fair to Jesse's anonymous correspondent I must admit that his conjecture, that in risk-free bond speculation we may be looking at deliberate Fed policy, is plausible. It is not impossible that the rot in the U.S. monetary system has already spread so far that in a truly free and unrigged bond market no bidders would turn up. Time is long since past when Treasurys were eagerly sought after by the most conservative segment of the investing public, such as guardians of widows and orphans, trust funds, eleemosynary institutions. Typically, they held the bonds to maturity. Treasurys, second only to gold, were the most trusted instruments of wealth-preservation.

Under the regime of the irredeemable dollar no investor in his right mind would buy a Treasury bond and hold it till maturity. Treasurys lose value as ice melts in the sunshine. They have become a plaything in the hands of speculators for their value in turning a fast buck. Under the gold standard there was no bond speculation, just as there was no foreign exchange speculation. Interest rates were stable and so were bond prices. Speculators would shun bonds. Of course, all this changed when president Nixon defaulted on the short-term gold obligation of the Treasury to foreigners in 1971, and gold was finally removed from the international monetary system at the behest of the U.S. government.

For a decade speculators were happy with the trading profits they could make in the bond market. But as the monetary system kept deteriorating, they started abandoning bonds, transferring their activities to the commodity market. By 1981 demand for bonds practically evaporated. As this spelled the end of the regime of the irredeemable dollar, the Fed had to do something to prop up the bond market by enticing bond speculators back.

Thus, then, it is quite possible that a decision was made at the highest level to offer the enticement of risk-free profits to bond speculators. It certainly cannot be denied that bond speculators have been making obscene profits in the course of the 30-year bull market in bonds that is still ongoing. These profits are unprecedented in the history of speculation, both on account of their magnitude and their regularity. They were made at the expense of productive enterprise, the capital of which has been surreptitiously siphoned off by the falling interest-rate structure.

Another way of describing this scenario (assuming it is correct) is that in 1981 the Fed, unknown to the public, decided to recruit a corps of shills to prop up a moribund bond market. The shills hired by the casinos of Las Vegas bet big and win big at the gaming tables in full view of the gamblers who are unaware that they are being treated to a show. The sight of these big payoffs will then perk up the gambling spirit of a lethargic clientele.

The shills recruited by the Fed are the bond speculators, and their remuneration is in the form of risk-free profits they are allowed to make (and keep). The scheme was a roaring success. Not only did it save the bond market from extinction; it also saved the dollar from ignominy, and was instrumental in making possible a whole string of bubbles, each bigger than the previous one.

The Road to Hell Is Paved with Good Intentions

The problem is far more serious than it may at first appear. Risk-free speculation is like a computer-virus that has no antidote and threatens to wipe out the Internet. It short-circuits normal economic processes and gobbles up the world economy.

I would welcome a public debate of my thesis that risk-free bond speculation suppresses the rate of interest and destroys capital in the process. I have challenged neo-classical economists who still consider the open-market operations of the Fed as a ‘refined tool to manage the national economy'. I want them, instead, to see in open-market operations the cancer of the economy responsible for the withering of the world's prosperity. So far my challenge has fallen upon deaf ears.

Here is the problem. The prevailing orthodoxy is the unholy alliance between Keynesianism and monetarism inspired by Friedman (defying the pretence that these two are antagonistic theories). The idea that an artificial increase in the money supply must raise commodity prices dies hard. But as my theory suggests, and as events have repeatedly shown (first during the Great Depression of the 1930's, and again, during the present crisis), the presence of risk-free speculation renders the increase in the money supply counter-productive. It causes prices to fall rather than rise.

Giving them the toy of risk-free profits makes speculators vacate the commodity market where risks are too high. They will then congregate in the bond market where risks are non-existent. The speculator who in the absence of risk-free profits might resist falling prices in the commodity market, will decline the honor of pushing the Keynesian agenda if given the choice of risk-free profits in bonds. This is basic human reaction that cannot be criticized, still less rectified, by official brow-beating. Keynesians should have thought about the consequences of their master-plan more thoroughly before they put open-market operations into effect.

The intentions of policy-makers at the Fed are praiseworthy. They want to prevent prices and employment from collapsing. But they are prisoners of their orthodoxy, and their good intentions make them steer the economy to the road to hell. A catastrophe is confronting the Titanic, but the captain, just confirmed in his position in spite of a most serious public challenge, will not change his course.

A head-on collision with the iceberg straight ahead, otherwise known as the debt-tower, now appears inevitable.

Calendar of Events

Seminar at the Martineum Academy, Szombathely, Hungary, March 25-29, 2010.

Is the Global Financial Crisis Over?

Sponsored by the Gold Standard Institute, with the participation of Sandeep Jaitly, Peter van Coppenolle, Rudy Fritsch, Darryl Schoon, Nathan Narusis, Professor Fekete, and others. Among other topics, there will be a presentation of the latest research on the gold basis, the world's pension woes, and an exclusive business idea turning the ridiculously undervalued "legal tender gold coins" to your advantage. For further details, see: www.professorfekete.com.


Stupid Wager or Clever Prestidigitation?

January 18th, 2011 by


The Daily Bell


Stupid Wager or Clever Prestidigitation?

Tuesday, January 18, 2011 – by  Dr. Antal Fekete

Dr. Antal Fekete

"Heads – you win; tails – I lose." Such is the message the Fed sends to bond speculators. But why would the Fed offer such a stupid wager? Read on.

The Fed is trying to bribe bond speculators with risk-free profits. That's how the Treasury/Fed check-kiting conspiracy makes sure that there will always be plenty of buyers for government debt, regardless of the size of offering.

Ten years ago I started writing about my theory that, wittingly or unwittingly, the Fed has become the quartermaster general of the coming deflation and depression. I offered a logical, closely argued reasoning for this thesis. My argument had to do with the contention that the open market operations of the Fed make bond speculation risk-free, which explains the perpetual bull market in bonds. Bond speculators, knowing that the Fed must needs buy bonds in order to keep the money supply growing, front-run (or, to use the old-fashioned term: pre-empt) the Fed's open market operations. They buy the bonds beforehand, and pocket risk-free profits when they sell them to the Fed. Speculators will allow the bond price to fall only so much. Then they show up as buyers for another ride of the escalator upstairs.

Incidentally, my theory also gives the coup-de-grâce to Keynesian and Friedmanite economics. Keynes, and later Friedman, advised governments to discard the gold standard thus destabilizing foreign exchange. That would give them free hand to pursue monetary policy — euphemism for the license to engineer unlimited depreciation of the currency. Scarcely did they consider that their scheme was to back-fire. They were shooting for inflation only to bag deflation. They wanted rising prices; instead, they got falling prices.

A falling interest-rate structure engenders a falling price-level structure. It is most destructive to the economy. It devastates existing capital and blocks the accumulation of new capital. The 30-year old regime of falling rates destroyed the once flourishing American industry forcing it to flee the country. There is no chance to accumulate new capital as long as interest rates keep falling. Continuation of this trend will cause excruciating pain to those producers who remain. They will not be able to compete with newcomers who carry a much smaller burden, thanks to their lower cost of capital. The squeeze of the old-guard producers will show up in the falling price level. The "grapes of wrath" — the seeds of which were planted by Keynes and Friedman — will come to full maturity when hoards of angry and hungry unemployed people will roam from city to city and country to country.

It is not the Fed who is in the driver's seat. It is the bond speculator. The Great Depression was not due to low demand for goods, as argued by Keynes. It was due to high demand for bonds, courtesy of speculators who understood the dynamics of the bond market better than policymakers did. The GFC is just a repeat performance.

Check-kiting is the name for the conspiracy, typically between two banks, to tap the float (the mass of checks in the process of clearing). The conspiring banks send one another third-party checks that lack any backing whatsoever. They cover the liability of one un-backed check by crediting the other, ad infinitum. It is similar to wildcat banking in Scotland in the 17th century, when the coach hired by the banks carrying gold was front-running the coach carrying bank inspectors from one bank to the next. Small wonder the inspectors found the gold reserve of every bank on their beat in good shape. Check-kiting is a crime to defraud the public dealt with by the Criminal Code. Except, that is, when practiced by the Treasury and the Fed, in which case it is called monetary policy.

Let us bypass the question on what valid grounds do the Treasury and the Fed issue liabilities which they have neither the inclination nor the means to honor. The practice boils down to clever prestidigitation: to mislead the public into believing that the Emperor does have clothes. He is cheered on by an enthusiastic crowd of bond speculators praising the garment. Until… until… a naughty little boy starts howling: "Gee whiz, Dad, the Emperor is stark naked!"

Suppose the Fed wants inflation and thinks that the best way to go about it is to keep buying bonds ad nauseam and call the practice by the acronym QE-X. The belief that pumping up the money supply through unlimited bond purchases by the central bank will bring about rising prices is a tragic mistake. A higher price level will never be achieved in this way. Bond speculators will have a field day. They would just buy the bonds in any amount. A vicious spiral of falling interest rates is engaged that, like the black hole of zero gravitation, will suck in and gobble up the world economy. Keynes and Friedman were hoping for inflation they could control; instead they got deflation they could not. They cut the tragic figure of the Sorcerer's Apprentice who stole the Master's password to turn on the spigots, but he has forgotten to steal the other password to turn them off when enough is enough.

Having been a lonely voice crying in the wilderness for ten years, I am still in a minority of one. Most economists expect Fed action to cause inflation (according to some, hyperinflation). The few who dare mention the d-words, deflation and depression, hasten to add that, of course, this would follow hyperinflation, not precede it. Same as in Zimbabwe. Reports from that unhappy country say that it has 90% unemployment after the worst hyperinflation on record.

I am the only one saying that the U.S. is not Zimbabwe, and for the U.S. the forecast is deflation first, hyperinflation afterwards — at least until the prestidigitation in the bond market is exposed.

Seldom do I get a tail-wind in the form of newspaper reports confirming that there is, after all, such a thing as front-running the Fed's open market operations, that bond speculators do indeed buy the bonds only to dump them in the lap of the Fed at a hefty premium. I have certainly never ever expected the New York Times to provide that tail-wind. Well, on January 10, 2011, that bastion of central planning published an article from the pen of Graham Bowley. It quotes Josh Frost who is in charge of buying hundreds of billions of dollars of Treasuries for the Fed: "We are looking to get the best price we can for the taxpayer". Then the article goes on to quote an authority on bond trading, Louis V. Crandall, chief economist at the research firm Wrightson ICAP, who flatly contradicts Frost: a buyer of $100 billion a month is always going to pay the worst (highest) price. "You can't be a known buyer of $100 billion a month and get a good price."

In my papers I have commiserated with traders of the Fed facing, as they are, hungry lions in the arena bare-handed. The latter are the bond speculators who, unlike the former, are not working for wages. They work for profits. (If the profits happen to be risk free, so much the better.) True, the loss the Fed's traders habitually make is not their loss. They are passed on to the taxpayers with a shrug. It is the taxpayers' blood that is spilled so valiantly.

This reminds me of the object-lesson offered by George Soros. He made mincemeat of the traders of the Bank of England some years ago who were trying to fend off his serial attacks to sell the British pound short. Soros took the traders to the cleaners and, to rub it in, he bragged about it in his book. No need to feel sorry for the forex traders of the Bag Lady of Threadneedle Street. It was not their blood anyway that was flowing so abundantly. It was the blood of the British taxpayers.

I didn't know the identity of the Fed's traders facing the hungry lions. Now I do, thanks to the New York Times. They are babes in Toyland. All three of them are in their 20's. Their only prior experience in trading comes from playing Monopoly. One of them is still a student at NYU. According to the story in the NYT, "most days" they talk to the big banks. How is that for guarding against conflict of interest? Their supervisor, Josh Frost lives in Brooklyn and every morning he takes the subway to commute to work. As one may figure, not for too long. Wonder how one gets such a rags-to-riches job at the Fed? Well, take the example of Josh Frost's boss, Bryan P. Sack, age 40. In 2004 he co-authored a paper with Ben Bernanke, the future chairman of the Fed and another economist about "unconventional measures for stimulating the economy in extraordinary times" — by buying Treasuries in batches of hundreds of billions of dollars. "We didn't know then that some day the Fed would be putting it to test" — Brian is quoted as saying.

The best part of it all is that the line between success and failure is hopelessly blurred. If the rate of interest goes down in consequence of Fed action, then: "hooray, we're dead on with targeting inflation. And that's good news". If, on the other hand, the rate of interest goes up, then: "hooray, the economy is turning around. Rates have risen for the very reason we were hoping for: investors are more optimistic about the recovery. It is a good sign."

The fact that in the meantime the economy is wiped out, gets lost in the noise of loud self-congratulation.


The Federal Reserve, the Quartermaster General of Deflation, A. E. Fekete

There Is No Business Like Bond Business, A. E. Fekete, www.professorfekete.com, January, 2010

Front/Running the Fed in the Treasurys Market
, January, 2010

The Fed`s QE2 Traders, Buying Bonds by the Billions, Graham Bowley, The New York Times, January 10, 2011

Meet the Fed's POMO Desk… by Tyler Durden, www.zerohedge.com, January 10, 2011





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