Categories » ‘Debt Bubble’
February 25th, 2015 by olddog
A Joint Initiative of GordonTLong.com and CliffKule.com
CURRENT FINANCIAL REPRESSION INITIATIVES
(MONEY MARKET FUND GATES (SEC REGULATIONS)
- **FRA POST: Central-Planners Herd Money Market Funds Into Government Financing
- **FRA POST: Fund managers now have the Legal Right to ‘suspend redemptions’ by the you on your Money Market Funds
- “Redemption Gates” for Money Market Funds Acting Man –“The adoption of ‘redemption gates’ effectively means that money market fund boards will be able to suspend the property rights of their customers. Once again, this creates a big disadvantage for the money market fund industry in favor of banks, since demand deposits will continue to lack such ‘redemption gates’, in spite of the fact that banks are de facto unable to actually pay out all demand deposits, or even a large portion of them, ‘on demand’. It is an interesting detail that retail customers are to be exempt from this regulation based on the idea that they are basically too addled to react to crisis conditions. Why are such regulations held to be required at all? Are regulators implying that the system has not been ‘made safe’ by adopting several telephone book-sized tomes of additional regulations?”
- SEC Votes Through Money Market Exit Gates Zero Hedge — the SEC has adopted the news rules designed to curb the risk of money market investor runs .. “Among the changes, funds will have to switch to a floating share price instead of the current $1/share (hence the term breaking the buck). But the key part: ‘The SEC’s rule will require prime money market funds to move from a stable $1 per share net asset value, to a floating NAV. It also will let fund boards lower redemption ‘gates’ and fees in times of market stress.” .. suggests this may send money market investor rushing out & into other asset classes – the SEC, the Federal Reserve & the U.S. Treasury hope that asset class is stocks to keep the stock market rising .. “Clearly, everyone understand that the only purpose behind implementing ‘gates’ is to redirect the herd. And with some $2.6 trillion in assets, money markets can serve as a convenient source of ‘forced buying’ now that QE is tapering if only for the time being. The only question is whether the herd will agree to this latest massive behavioral experiment by the Fed, and allocate their funds to a stock market which is now trading at a higher P/E multiple than during the last market peak.”
- ALERT: Pull Your Money From Money Markets Now! Economic Policy Journal
- U.S. SEC poised to adopt reforms for money market funds Reuters
- Fund managers on alert over money market shake-up FT -The SEC is looking to drive money market funds to only government securities, especially institutional money market funds – this means money market funds will be helping to pay for the government debt .. The SEC is also planning to allow fees and restrictions on redemptions in times of stress, but it is not clear how widely these will be applied across the money markets – FT: “Any restrictions on redemptions may not be severe at first, but the regulations will only become more restrictive over time. Don’t waste time thinking you are going to monitor the situation and get out later. Get out now, when the getting is easy.”
Do you know the difference between a money market fund and a money market account? CNBC Personal Finance Reporter Sharon Epperson explains the big difference
BAIL-IN (GLOBAL – G20 LEGISLATION)
- Australia: ‘Bail in’ Rules May Be Inevitable In Australia - August 22, 2014 Bail in’ rules may be inevitable, says David Murray of the Financial Systems Inquiry Chair in Australia .. “It appears there’s a wide consensus that bail-in would considerably expand the buffer, would further assist in the mechanisms for the protection of depositors, and importantly would create a system where it is less likely that the government would be dragged into a crisis.” .. Australia may have little choice but to adopt “bail-in” rules that expose bank creditors to losses, due to our dependence on foreign capital .. more financial repression.
- Canada: Department Of Finance Releases Proposal For Canadian Bail-In Regime Canada’s government is looking to implement a bail-in regime to limit exposure to a government bailout – the idea is for troubled banks to shaft bank depositors of their bank deposits first .. “The G-20, including Canada, endorsed the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions in 2011, a set of best practices for the resolution of financial institutions which contemplates the establishment of a bail-in regime.”
**FRA POST: Federal Reserve & Congress Talk “ENHANCED PRUDENTIAL STANDARDS”
CAPITAL CONTROLS (CASEY RESEARCH ON COMING CAPITAL CONTROLS)
**FRA POST: Indebted Governments Will Resort To Capital Controls
1: IMF Endorses Capital Controls
Bloomberg reported in December 2012 that the “IMF has endorsed the use of capital controls in certain circumstances.“ This is particularly important because the IMF, arguably an even more prominent institution since the global financial crisis started, has always had an official stance against capital controls. “In a reversal of its historic support for unrestricted flows of money across borders, the IMF said controls can be useful…” Will individual governments jump on this bandwagon? “It will be tacitly endorsed by a lot of central banks,”says Boston University professor Kevin Gallagher. If so, it could be more than just your home government that will clamp down on storing assets elsewhere.
2: There Is Academic Support for Capital Controls
Many mainstream economists support capital controls. For example, famed Harvard Economists Carmen Reinhart and Ken Rogoff wrote the following earlier this year:
Governments should consider taking a more eclectic range of economic measures than have been the norm over the past generation or two. The policies put in place so far, such as budgetary austerity, are little match for the size of the problem, and may make things worse. Instead, governments should take stronger action, much as rich economies did in past crises.
Aside from the dangerously foolish idea that reining in excessive government spending is a bad thing, Reinhart and Rogoff are saying that even more massive government intervention should be pursued. This opens the door to all kinds of dubious actions on the part of politicians, including—to my point today—capital controls.
“Ms. Reinhart and Mr. Rogoff suggest debt write-downs and ‘financial repression’, meaning the use of a combination of moderate inflation and constraints on the flow of capital to reduce debt burdens.” The Reinhart and Rogoff report basically signals to politicians that it’s not only acceptable but desirable to reduce their debts by restricting the flow of capital across borders. Such action would keep funds locked inside countries where said politicians can plunder them as they see fit.
3: Confiscation of Savings on the Rise
“So, what’s the big deal?” Some might think. “I live here, work here, shop here, spend here, and invest here. I don’t really need funds outside my country anyway!” Well, it’s self-evident that putting all of one’s eggs in any single basket, no matter how safe and sound that basket may seem, is risky—extremely risky in today’s financial climate. In addition, when it comes to capital controls, storing a little gold outside one’s home jurisdiction can help avoid one major calamity, a danger that is growing virtually everywhere in the world: the outright confiscation of people’s savings.
The IMF, in a report entitled “Taxing Times,” published in October of 2013, on page 49, states: “The sharp deterioration of the public finances in many countries has revived interest in a capital levy—a one-off tax on private wealth—as an exceptional measure to restore debt sustainability.”
The problem is debt. And now countries with higher debt levels are seeking to justify a tax on the wealth of private citizens. So, to skeptics regarding the value of international diversification, I would ask: Does the country you live in have a lot of debt? Is it unsustainable? If debt levels are dangerously high, the IMF says your politicians could repay it by taking some of your wealth.
The following quote sent shivers down my spine…
The appeal is that such a task, if implemented before avoidance is possible and there is a belief that is will never be repeated, does not distort behavior, and may be seen by some as fair. The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away.
The IMF has made it clear that invoking a levy on your assets would have to be done before you have time to make other arrangements. There will be no advance notice. It will be fast, cold, and cruel. Notice also that one option is to simply inflate debt away. Given the amount of indebtedness in much of the world, inflation will certainly be part of the “solution,” with or without outright confiscation of your savings. (So make sure you own enough gold, and avoid government bonds like the plague.)
Further, the IMF has already studied how much the tax would have to be: The tax rates needed to bring down public debt to pre-crisis levels are sizable: reducing debt ratios to 2007 levels would require, for a sample of 15 euro area countries, a tax rate of about 10% on households with a positive net worth. Note that the criterion is not billionaire status, nor millionaire, nor even “comfortably well off.” The tax would apply to anyone with a positive net worth. And the 10% wealth-grab would, of course, be on top of regular income taxes, sales taxes, property taxes, etc.
4: We Like Pension Funds
Unfortunately, it’s not just savings. Carmen Reinhart (again) and M. Belén Sbrancia made the following suggestions in a 2011 paper:
Historically, periods of high indebtedness have been associated with a rising incidence of default or restructuring of public and private debts. A subtle type of debt restructuring takes the form of ‘financial repression.’ Financial repression includes directed lending to government by captive domestic audiences (such as pension funds), explicit or implicit caps on interest rates, regulation of cross-border capital movements, and (generally) a tighter connection between government and banks.
Yes, your retirement account is now a “captive domestic audience.” Are you ready to “lend” it to the government? “Directed” means “compulsory” in the above statement, and you may not have a choice if “regulation of cross-border capital movements”—capital controls—are instituted.
5: The Eurozone Sanctions Money-Grabs
Germany’s Bundesbank weighed in on this subject last January:
“Countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help.”
The context here is that of Germans not wanting to have to pay for the mistakes of Italians, Greeks, Cypriots, or whatnot. Fair enough, but the “capital levy” prescription is still a confiscation of funds from individuals’ banks or brokerage accounts.
Here’s another statement that sent shivers down my spine:
A capital levy corresponds to the principle of national responsibility, according to which tax payers are responsible for their government’s obligations before solidarity of other states is required.
The central bank of the strongest economy in the European Union has explicitly stated that you are responsible for your country’s fiscal obligations—and would be even if you voted against them! No matter how financially reckless politicians have been, it is your duty to meet your country’s financial needs.
This view effectively nullifies all objections. It’s a clear warning.
And it’s not just the Germans. On February 12, 2014, Reuters reported on an EU commission document that states:
The savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis.
Reuters reported that the Commission plans to request a draft law, “to mobilize more personal pension savings for long-term financing.”
EU officials are explicitly telling us that the pensions and savings of its citizens are fair game to meet the union’s financial needs. If you live in Europe, the writing is on the wall.
Actually, it’s already under way… Reuters recently reported that Spain has
…introduced a blanket taxation rate of .03% on all bank account deposits, in a move aimed at… generating revenues for the country’s cash-strapped autonomous communities.
The regulation, which could bring around 400 million euros ($546 million) to the state coffers based on total deposits worth 1.4 trillion euros, had been tipped as a possible sweetener for the regions days after tough deficit limits for this year and next were set by the central government.
Some may counter that since Spain has relatively low tax rates and the bail-in rate is small, this development is no big deal. I disagree: it establishes the principle, sets the precedent, and opens the door for other countries to pursue similar policies.
6: Canada Jumps on the Confiscation Bandwagon
You may recall this text from last year’s budget in Canada:
“The Government proposes to implement a bail-in regime for systemically important banks.”
A bail-in is what they call it when a government takes depositors’ money to plug a bank’s financial holes—just as was done in Cyprus last year.
This regime will be designed to ensure that, in the unlikely event a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital.
What’s a “bank liability”? Your deposits. How quickly could they do such a thing? They just told us: fast enough that you won’t have time to react.
By the way, the Canadian bail-in was approved on a national level just one week after the final decision was made for the Cyprus bail-in.
Have you considered why the Foreign Account Tax Compliance Act was passed into law? It was supposed to crack down on tax evaders and collect unpaid tax revenue. However, it’s estimated that it will only generate $8.7 billion over 10 years, which equates to 0.18% of the current budget deficit. And that’s based on rosy government projections.
FATCA was snuck into the HIRE Act of 2010, with little notice or discussion. Since the law will raise negligible revenue, I think something else must be going on here. If you ask me, it’s about control.
In my opinion, the goal of FATCA is to keep US savers trapped in US banks and in the US dollar, in case the US wants to implement a Cyprus-like bail-in. Given the debt load in the US and given statements made by government officials, this seems like a reasonable conclusion to draw.
This is why I think that the institution of capital controls is a “when” question, not an “if” one. The momentum is clearly gaining steam for some form of capital controls being instituted in the near future. If you don’t internationalize, you must accept the risk that your assets will be confiscated, taxed, regulated, and/or inflated away.
What to Expect Going Forward
- First, any announcement will probably not use the words “capital controls.”It will be couched positively, for the “greater good,” and words like “patriotic duty” will likely feature prominently in mainstream press and government press releases. If you try to transfer assets outside your country, you could be branded as a traitor or an enemy of the state, even among some in your own social circles.
- Controls will likely occur suddenly and with no warning. When did Cyprus implement their bail-in scheme? On a Friday night after banks were closed. By the way, prior to the bail-in, citizens were told the Cypriot banks had “government guarantees” and were “well-regulated.” Those assurances were nothing but a cruel joke when lightning-fast confiscation was enacted.
- Restrictions could last a long time. While many capital controls have been lifted in Cyprus, money transfers outside the country still require approval from the Central Bank—over a year after the bail-in.
- They’ll probably be retroactive.Actually, remove the word “probably.” Plenty of laws in response to prior financial crises have been enacted retroactively. Any new fiscal or monetary emergency would provide easy justification to do so again. If capital controls or savings confiscations were instituted later this year, for example, they would likely be retroactive to January 1. For those who have not yet taken action, it could already be too late.
- Social environment will be chaotic.If capital controls are instituted, it will be because we’re in some kind of economic crisis, which implies the social atmosphere will be rocky and perhaps even dangerous. We shouldn’t be surprised to see riots, as there would be great uncertainty and fear. That’s dangerous in its own right, but it’s also not the kind of environment in which to begin making arrangements.
- Ban vs. levy. Imposing capital controls is a risky move for a government to make; even the most reckless politicians understand this. That won’t stop them, but it could make them act more subtly. For instance, they might not impose actual bans on moving money across borders, but instead place a levy on doing so. Say, a 50% levy? That would “encourage” funds to remain inside a given country. Why not 100%? You could be permitted to transfer $10,000 outside the country—but if the fee for doing so is $10,000, few will do it. Such verbal games allow politicians to claim they have not enacted capital controls and yet achieve the same effect. There are plenty of historical examples of countries doing this very thin
Keep in mind: Who will you complain to? If the government takes a portion of your assets, legally, who will you sue? You will have no recourse. And don’t expect anyone below your tax bracket to feel sorry for you.
POLICY CONTROLS (Monetary, Fiscal, Public & Tax Policy)
- January 2015 Financial Repression – New IMF Paper on The Liquidation of Government Debt New IMF paper by Carmen Reinhart & M. Belen Sbrancia .. presents how public debt is often reduced through the use of financial repression – a tax on bondholders & savers via negative or below market real interest rates .. from abstract:High public debt often produces the drama of default and restructuring. But debt is also reduced through financial repression, a tax on bondholders and savers via negative or below-market real interest rates. After WWII, capital controls and regulatory restrictions created a captive audience for government debt .. Financial repression is most successful in liquidating debt when accompanied by inflation. For the advanced economies, real interest rates were ne gative ½ of the time during 1945–1980. Average annual interest expense savings for a 12—country sample range from about 1 to 5% of GDP for the full 1945–1980 period. We suggest that, once again, financial repression may be part of the toolkit deployed to cope with the most recent surge in public debt in advanced economies.”
- October 2014 – Financial Repression is Very Low Interest Rates for a Very Long Time The 16th annual Geneva Report by the International Centre for Monetary and Banking Studies & written by senior economists including 3 former senior central bankers, predicts interest rates across the world will have to stay low for a “very, very long” time to enable households, companies, & governments to service their debts and avoid another crash .. The report’s authors expect interest rates to stay lower than market expectations because the rise in debt means that borrowers would be unable to withstand faster rate rises .. “Global debt-to-GDP is still growing, breaking new highs .. At the same time, in a poisonous combination, world growth and inflation are also lower than previously expected, also – though not only – as a legacy of the past crisis. Deleveraging and slower nominal growth are in many cases interacting in a vicious loop, with the latter making the deleveraging process harder and the former exacerbating the economic slowdown. Moreover, the global capacity to take on debt has been reduced through the combination of slower expansion in real output and lower inflation.”
- October 2014 – Financial Repression is the likely approach for Governments to pay down debt Great insightful article on financial repression by Daniel Amerman .. questions how the U.S. federal government can pay down its enormous debt .. sees 4 primary options that the government can take: 1) Decades of austerity with higher taxes and lower government spending. 2) Defaulting on government debts. 3) Inflating away the value of the debt through rapidly slashing the value of the currency. 4) Using “Financial Repression”, a process that is complex enough that the average voter never understands how it works, thus allowing governments to use this potent but subtle method of taking vast sums of private wealth, year after year, decade after decade, with almost no political consequences. The essay reminds readers the 4th option is the likely approach, points out the world took this approach in the 1940s through the 1970s to pay down government debt .. “Because of the sheer size of the problem – most of the population must be made to participate, year after year. Financial Repression therefore uses an assortment of carrots and sticks to ensure that investors have little choice but to participate – on a playing field that has been rigged against them as a matter of design – even if they are among the small minority who are aware of what is being done to them.”The essay covers 4 areas of financial repression: 1) Inflation (Shearing #1) 2) Negative Real Interest Rates (Shearing #2) 3) Funding By Financial Institutions (Fence #1). 4) Capital Controls (Fence #2).
- September 2014 – Governments Implementing Financial Repression International Man article on how western world indebted governments need money, how they will protect the big banks at the expense of the citizens with financial repression .. The International Monetary Fund (IMF) published a horrifying paper, called The Fund’s Lending Framework and Sovereign Debt. That paper in turn was based on one from December 2013, called Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten .. The December 2013 document, right at the start, says that financial repression is necessary: “The claim is that advanced countries do not need to resort to the standard toolkit of emerging markets, including debt restructurings and conversions, higher inflation, capital controls and other forms of financial repression .. As we document, this claim is at odds with the historical track record of most advanced economies, where debt restructuring or conversions, financial repression, and a tolerance for higher inflation, or a combination of these were an integral part of the resolution of significant past debt overhangs.” .. The IMF report goes on to say: “Governments can stuff debt into local pension funds and insurance companies, forcing them through regulation to accept far lower rates of return than they might otherwise demand .. Domestic defaults, restructurings, or conversions are particularly difficult to document and can sometimes be disguised as ‘voluntary’ .. The Fund would be able to provide exceptional access on the basis of a debt operation that involves an extension of maturities .. That means that 30-day notes can be instantly turned into 30-year bonds.” – this last sentence means the ability to change 30-day notes into 30-year bonds, effectively holding the money captive for a much longer period of time
- Monetary Policy & Financial Repression in Britain, 1951 – 59 New book coming out by William Allen on Monetary Policy and Financial Repression in Britain, 1951 – 59 .. this book explores the politics of formulating monetary policy in the 1950s, the tools implementing it & discusses the parallels between the present monetary policy & that of 1951 .. “Drawing on official archives, this study describes how monetary policy was decided on, implemented and communicated at a time when the government was struggling with massive post-war debts while maintaining welfare and military spending and cutting taxes. It discusses the roles of the Governor of the Bank of England, Cameron Cobbold, and of successive Chancellors R.A. Butler, Harold Macmillan, Peter Thorneycroft and Derick Heathcoat Amory, and Macmillan’s continued dominance of monetary policy after he became Prime Minister. It explains the intimate relationships between monetary policy, government debt management and fiscal policy, and the use of ‘financial repression’.”
- Low Interest Rates & Inflation To Address Financial Repression Article points out the worse things get on the European financial/economic crisis, the more pressure there is on the European Central Bank (ECB) to print money – stocks will likely go up as this happens on the anticipation that the ECB will given in & start money printing .. “The ECB would print money and use it to buy eurozone government bonds, in order to prop up the region’s banking sector, and to encourage more risk-taking by lenders and investors. Of course, any hint of more money-printing always cheers the market, and European stocks reacted well to the news.” .. the article points to how U.S. & UK stocks have similarly reacted positively on all the money printing .. whether all this money is good for the economy or whether it even benefits the economy in any positive way is another question .. the article emphasizes the approach of financial repression taken by the U.S. & UK in keeping interest rates down & allowing inflation to rise in order to pay off some government debt via inflation, rather than by defaulting or cutting back spending .. most western world governments are in this bind, so that “we could see interest rates staying lower than markets expect for some time. And in the longer run, we could see a lot more inflation than we’ve been used to as well” .. in terms of investing, the article suggests sticking with countries that are looking to do more money printing & that have relatively inexpensive stock markets, such as Europe or Japan.
- This Is Going To Destabilize The Entire World Financial System Ronald-Peter Stoferle, Incrementum AG “Bond prices in practically all industrialized nations are near all-time highs. Never before have interest rates been this low on a global basis. If one examines these events more closely, it becomes clear that the underlying problems cannot be solved by global zero interest rate policy, but that the natural selection process of the market is instead being undermined .. Interest rates are the heart, soul and life of the free enterprise system .. This truth is however veiled and distorted at the moment. Governments, financial institutions, entrepreneurs and consumers that are acting in an uneconomic manner are thus kept artificially afloat. As a result, instead of them being punished for their errors, these errors are perpetuated. Protraction of this process of selection leads to a structural weakening of the economy, and a concomitant increase in the system’s fragility .. Declining interest rate levels make a gradual increase in public indebtedness possible, while the interest burden (as a share of government spending) does not grow .. Without negative real interest rates, the steadily growing mountains of debt would long ago have ceased to be sustainable. Central banks are increasingly prisoners of the policy of over-indebtedness .. Central banks and governments are currently trying to create an increase in prosperity out of nothing. Such a monetary perpetuum mobile would be quite desirable for humankind, however, historically such attempts have at best led to a brief sugar high followed by a major hangover.
- Alasdair Macleod On The Markets: Keep Calm & Carry On “Investment is now all about the trend and little else. You never have to value anything properly any more: just measure confidence. This approach to investing resonates with post-Keynesian economics and government planning. The expectations of the crowd, or its animal spirits, are now there to be managed. No longer is there the seemingly irrational behaviour of unfettered markets dominated by independent thinkers. Forward guidance is just the latest manifestation of this policy. It represents the triumph of economic management over the markets .. Doubtless there is a growing band of central bankers who believe that with this control they have finally discovered Keynes’s Holy Grail: the euthanasia of the rentier and his replacement by the state as the primary source of business capital. This being the case, last month’s dip in the markets will turn out to be just that, because intervention will simply continue and if necessary be ramped up .. But in the process, all market risk is being transferred from bonds, equities and all other financial assets into currencies themselves; and it is the outcome of their purchasing power that will prove to be the final judgement in the debate of markets versus economic planning.”
- The Fed’s Financial Repression At Work: How Big Blue Was Turned Into A Wall Street Slush Fund David Stockman – “IBM is a poster child for the ill-effects of the Fed’s financial repression. In effect, the Fed’s zero interest rate policies are telling big companies to issue truckloads of debt and use the proceeds to buyback shares hand-over-fist. That way fast money speculators on Wall Street are appeased by the resulting share price lift, and top executives collect bigger winnings on their stock options.”
- Time For Regime Change At The Eccles Building: Interest Rate Pegging Is Destroying Capitalism 07-13-14 David Stockman
- BoJ To Engage In ‘Financial Repression'; We Stay Long USD/JPY – BNPP 07-11-14 eFX News “Japan now has one of the highest inflation rates in the G10. Our economists expect the BoJ to engage in ‘financial repression’ to restrain the rise in JGB yields that results from Japan’s fiscal dynamics,” BNPP says as a rationale behind this view. “A larger overshoot in Japan’s inflation rate would also see the yen weaken. If inflation gets out of hand, we could, our economists suggest, see an ‘operation twist’ policy in Japan – similar to that witnessed in the US. This would entail aggressive purchases of JGBs coupled with interest rate hikes to stave off inflation. The resultant inversion in the yield curve, along with the upside shock to inflation, is a risk scenario for Japan and the ensuing adverse growth-inflation paradigm would necessarily entail a weaker yen,” BNPP argues. “In addition, a re-allocation in the government pension investment fund (GPIF) and a likely pick-up in Japanese outflows will mean JPY weakens,” BNPP adds.
- Expropriation Is Back – Is Christine Lagarde The Most Dangerous Woman In The World? Zero Hedge
- Norway Sovereign Wealth Fund Unveils “New Strategy” – Buy 5% Of Every European Stock 06-24-14
- Boston Consulting Group Study September 2011
- Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten - December 2013 IMF
- Extending Maturities on Bonds - 05-22-14 IMF
MyRA – More About Getting Votes Than Helping Middle Class
The Three Stooges Debunk myRA – Zero Hedge
The MyRA Propaganda Begins A Start To A Secure Retirement Promises Treasury Secretary
Obama To Unveil Treasury IRAs, Or Planning For A Post-Monetization World
The Next Shoe To Drop On Your Retirement Account
Default, Deflation and Financial Repression
ECB Seriously Considering Negative Interest Rates; New Central Bank Mottos
First It Was Bail-Ins And Now EU Sees “Personal Pension Savings” As “Plug” For Banks
Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit
We Are From The Government And We Are Here To Offer You A No Risk, Guaranteed Return Investment Product
Theft Is Deflationary – Especially The Crony-CapitalistState Kind
When Saving Interest Rates Go Negative
REGULATORY CONTROLS & ENFORCEMENT
- U.S. Pushing Banks On Dodd-Frank Act To Make It Easier For Government To FREEZE YOUR MONEY – Financial Repression Via Regulations “The U.S. wants big banks to simplify their Dodd-Frank Act resolution plans so it’s easier for government to freeze your money.” .. Bloomberg reports on the progress made by Wall Street banks developing their “living wills” as part of the Dodd-Frank Act legislation attempting to minimize “too big to fail” banks .. Bloomberg: “The Federal Reserve and Federal Deposit Insurance Corp. told 11 of the largest U.S. and foreign banks, including JP Morgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS), that they botched their so-called living wills. The agencies ordered the banks to simplify their legal structures and revise some practices to make sure they can collapse without damaging the wider financial system.” Jim Rickards:
- Fischer worries about macroprudential policy- 07-10-14 FT Mr Fischer’s most interesting remarks relate to his experience with macroprudential policy in Israel. Israel’s bank supervisor used a range of tools to restrict mortgage lending and try to avert a housing bubble. Mr Fischer draws three lessons:
- Prohibiting Banks From Paying Interest On Demand Deposits Regulation Q
- Basel Accord II and III – 05-16-14 Cliff Küle
PUBLIC & PRIVATE PRESSURES & PENALTIES
Charting The Death Of The Saver
Placing the Government Debt on the back off Savers & Pensioners
(ie the 75M Baby Boomers About to Retire)
February 12th, 2015 by olddog
Over the past decade, there has been only one other time when the value of the U.S. dollar has increased by so much in such a short period of time. That was in mid-2008 – just before the greatest financial crash since the Great Depression.
A surging U.S. dollar also greatly contributed to the Latin American debt crisis of the early 1980s and the Asian financial crisis of 1997. Today, the globe is more interconnected than ever. Most global trade is conducted in U.S. dollars, and much of the borrowing done by emerging markets all over the planet is denominated in U.S. dollars. When the U.S. dollar goes up dramatically, this can put a tremendous amount of financial stress on economies all around the world. It also has the potential to greatly threaten the stability of the 65 trillion dollars in derivatives that are directly tied to the value of the U.S. dollar.
The global financial system is more vulnerable to currency movements than ever before, and history tells us that when the U.S. dollar soars the global economy tends to experience a contraction. So the fact that the U.S. dollar has been skyrocketing lately is a very, very bad sign.
Most of the people that write about the coming economic collapse love to talk about the coming collapse of the U.S. dollar as well. But in the initial deflationary stage of the coming financial crisis, we are likely to see the U.S. dollar actually strengthen considerably.
As I have discussed so many times before, we are going to experience deflation first, and after that deflationary phase the desperate responses by the Federal Reserve and the U.S. government to that deflation will cause the inflationary panic that so many have written about.
Yes, someday the U.S. dollar will essentially be toilet paper. But that is not in our immediate future. What is in our immediate future is a “flight to safety” that will push the surging U.S. dollar even higher.
This is what we witnessed in 2008, and this is happening once again right now.
Just look at the chart that I have posted below. You can see the the U.S. dollar moved upward dramatically relative to other currencies starting in mid-2008. And toward the end of the chart you can see that the U.S. dollar is now experiencing a similar spike…
At the moment, almost every major currency in the world is falling relative to the U.S. dollar.
For example, this next chart shows what the euro is doing relative to the dollar. As you can see, the euro is in the midst of a stunning decline…
Unfortunately, most Americans have absolutely no idea how important all of this is. In recent years, growing economies all over the world have borrowed gigantic piles of very cheap U.S. dollars. But now they are faced with the prospect of repaying those debts and making interest payments using much more expensive U.S. dollars.
Investors are starting to get nervous. At one time, investors couldn’t wait to pour money into emerging markets, but now this process is beginning to reverse. If this turns into a panic, we are going to have one giant financial mess on our hands.
The truth is that the value of the U.S. dollar is of great importance to every nation on the face of the Earth. The following comes from U.S. News & World Report…
In the early ’80s, a bullish U.S. dollar contributed to the Latin American debt crisis, and also impacted the Asian Tiger crisis in the late ’90s. Emerging markets typically have higher growth, but carry much higher risk to investors. When the economies are doing well, foreign investors will lend money to emerging market countries by purchasing their bonds.
They also deposit money in foreign banks, which facilitates higher lending. The reason for this is simple: Bond payments and interest rates in emerging markets are much higher than in the U.S. Why deposit cash in the U.S. and earn 0.25 percent, when you could earn 6 percent in Indonesia? With the dollar strengthening, the interest payments on any bond denominated in U.S. dollars becomes more expensive.
Additionally, the deposit in the Indonesian bank may still be earning 6 percent, but that is on Indonesian rupiahs. After converting the rupiahs to U.S. dollars, the extra interest doesn’t offset the loss from the exchange. As investors get nervous, the higher interest on emerging market debt and deposits becomes less alluring, and they flee to safety. It may start slowly, but history tells us it can quickly spiral out of control.
Over the past few months, I have been repeatedly stressing that so many of the signs that we witnessed just prior to previous financial crashes are happening again.
Now you can add the skyrocketing U.S. dollar to that list.
If you have not seen my previous articles where I have discussed these things, here are some places to get started…
“Guess What Happened The Last Time The Price Of Oil Crashed Like This?…”
“Not Just Oil: Guess What Happened The Last Time Commodity Prices Crashed Like This?…”
“10 Key Events That Preceded The Last Financial Crisis That Are Happening Again RIGHT NOW”
The warnings signs are really starting to pile up.
When we look back at past financial crashes, there are recognizable patterns that can be identified.
Anyone with half a brain should be able to see that a large number of those patterns are unfolding once again right before our eyes.
Unfortunately, most people in this world end up believing exactly what they want to believe.
No matter how much evidence you show them, they will not accept the truth until it is too late.
This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
AS I’VE SAID BEFORE
December 23rd, 2014 by olddog
Posted by arnierosner
Written By Anna von Reitz
At first base you learned that what you have been thinking of as “your government” is in fact a private, foreign, for-profit governmental services corporation called the UNITED STATES. This entity is owned and operated by the INTERNATIONAL MONETARY FUND, which is an agency of the UN. The UNITED STATES, INC. has fifty “STATE” franchises doing business as the “STATE OF OHIO” and the “STATE OF WISCONSIN” and so on, just as Burger King or Sears or Dairy Queen have local franchises.
An earlier private, for profit governmental services corporation known as the United States of America, Incorporated, functioned from 1868 to 1933 when it entered into bankruptcy reorganization and remained in Chapter 11 from 1933 to July 1, 2013. It had fifty “federal state” franchises operating as the “State of Ohio” and “State of Georgia” and so on, too—-all part of the “Federal Reserve System”. The Federal Reserve was organized under the auspices of a foreign nation calling itself the United States of America (Minor) composed of what are more normally thought of as the “federal territories and possessions”—-Guam, Puerto Rico, American Virgin Islands, American Samoa, et alia.
So at the same time during most of your life there have been two “federal governments”—that is, “federal” governmental services corporations— operating side by side in collusion to defraud you. When FDR bankrupted the United States of America, Inc. he and his “Governors”— the federal State franchise owners—pledged the “good faith and credit” of “their states and the citizenry thereof” as “sureties” backing the debts of the bankrupt corporation during its reorganization.
The UNITED STATES, INC. took up where the United States of America, Inc. left off, and simply passed through all its charges for services directly to the presumed sureties—- us. The problem is that we never consented under conditions of full disclosure to be “federal” states nor “federal” citizens. It was merely self-interested “policy” of these corporations and their creditors to “presume” that we were all “voluntary sureties” and to plunder our estates and “indebt” us for their spending.
They never told us all the lies and processes they employed to justify and accomplish this identity theft and fiduciary trust fraud used to usurp our natural position as beneficiaries of our own estates and to instead name their corporations as both the comptrollers and beneficiaries of our labor, our lives, our relationships, our businesses, our homes, and our land.
Now, you are going to learn and thoroughly understand that part of it.
Let’s use the name of the present “Secretary of the Treasury”—- “jacob joseph lew” as the name in our example, in hopes that he may get the point.
First, let’s look at Secretary Lew’s birth state: New York.
This is the original “State of New York” one of the original Thirteen (E)states that joined together as the united States of America. Notice that “united” is just an adjective describing a union or association or as they put it, a “perpetual confederation” of these landed “(E)states” The actual name of this country is the “States of America”. The actual and still very much in effect document binding the states together is The Articles of Confederation (1781).
Any idea that any “Constitution” dissolved or replaced the Articles of Confederation is a self-serving lie perpetuated by those who would defraud and enslave you. The “Constitution” —-the real Constitution— is an equity contract and public trust indenture that neither describes the states in terms of their geography nor binds them together in any way except as mutual subscribers to the governmental services to be provided by the “contract government”.
The 1824 Edition of the Webster’s Dictionary clearly states that the word “federal” was a synonym for “contract”, a usage and convention used repeatedly in relation to other documents of the time. It will help you to de-program if every time you see the words “federal government” you instead insert “contract government”—-for that is what it is. It is and has always been a foreign, maritime entity under contract to provide nineteen enumerated governmental services to the subscribing American states. The Constitution, like all Constitutions, is a debt agreement stipulating the services under contract, the limits of the authorities granted, and the payment terms.
This commercial contract is NOT what created your country and formed the Union of States. It merely helped to “perfect” the Union by providing common defense, common currency, and common administration of certain mutually agreed upon services. It also set common limits on the “federal government” in its administration of these mutual services to be provided to the subscribing states.
When we talk about a “state”, even a geographically defined “state” we must be aware that we are talking about a fictional entity. It doesn’t really exist, except via social agreement and convention. In truth there are no state borders established by God, no painted line etched by Heaven to separate New York from New Jersey, and when you go to Court and are accused or judged by anything calling itself the “State of New York” or “STATE OF NEW JERSEY” it is not the land and water of these states that levels the charges or claims to be injured or rises up to accuse you.
All such “States” are fictional in nature, including the original States of the Union bound together by The Articles of Confederation.
Little baby “jacob joseph lew” is born on the land of the American organic, geographically defined New York State. He is given his individual name— his “given name” which is “jacob joseph” by his parents and he inherits his family surname “lew” from his father. Properly, his name as a living baby must be either denoted in all small letters as shown here, or he must be described, as in “Joseph-Jacob of the House Lew”. These are the only proper and lawful ways to name a living freeborn child, and it has been that way since the days of ancient Rome. He is born as a civilian on the jurisdiction of the land, and as a natural –born American, he has complete civil authority. Even as a baby little jacob joseph lew possessed more civil authority on the land of New York State than the entire federal government, but he was blissfully unaware of that fact.
So we’ve already learned some important arcane information here: how to properly and lawfully name a living baby, how to name a land-based geographically defined “state”—-it’s “New York State”— versus a legal fiction political state—the “State of New York” created by social agreement and convention. Little jacob-joseph:lew was thus born on the land of New York State, and, at the same time, inthe State of New York.
We’ve already determined that he was born on the land as a civilian and with complete civil authority on the land, but what does this additional status of being born in the “State of New York” confer? We walk on the land and we swim in the water. This second, political status falls under maritime jurisdiction. Jacob-joseph is still a civilian, so the “State of New York” operates in civil maritime.
To denote this fundamental difference in jurisdiction between the land and the sea, jacob joseph lew’s name on the land is “restyled” as “Jacob Joseph Lew”.
So you now have one baby, two names, and two completely separate jurisdictions— jurisdictions that are as absolutely and endemically separate from each other as the land and the sea.
Civil maritime is the jurisdiction in which merchant mariners and commercial “vessels” trade and sail the seas, so perhaps it is not awfully surprising that Federal Title 7 considers “Jacob Joseph Lew” a “vessel” and the Internal Revenue Code describes him as a warrant officer in the Merchant Marine Service when he exercises his “office” as a “withholding agent” working for an offshore Puerto Rican trust operated under the name “JACOB JOSEPH LEW”.
This third version, “JACOB JOSEPH LEW” appears shortly after “Jacob Joseph Lew” is “registered” by agents under contract to the Federal Reserve System as a vessel belonging to the United States of America, Incorporated.
Say, what? Yes, those nice people at the New York Bureau of Vital Statistics aren’t working for the New York State. They are working for the State of New York. And the “State of New York” is a “federal state franchise” of the United States of America, Incorporated, which was owned and operated by the Federal Reserve System under the auspices of a foreign nation calling itself “the United States of America (Minor)”—–though they very rarely bother to include the word (Minor). This “other United States” is composed of a consortium of “American” “States” more often thought of as federal territories and possessions, including Guam, Puerto Rico, American Samoa, American Virgin Islands and “Other Insular States”. It’s a private corporation organized under the auspices of a foreign country operating “state” franchises in our midst.
All your life you have never used your real name or enjoyed your birthright or your God-given freedom, because these interlopers came to your Mother under conditions of non-disclosure and self-interested deceit by committing fiduciary trust fraud, they pushed your Mother to unknowingly donate you as chattel “entrusted” to their corporation— their “state” franchise” doing business as the “State of New York”, which allowed them to claim that you were “voluntarily” renouncing your birthright status as a civilian on the land of the New York State, and agreeing instead to be “enfranchised” and made “subject” to the “territorial jurisdiction” of the United States of America (Minor).
In one stroke, your misled and purposefully entrapped Mother gave this foreign, for-profit, private “State” franchise of the bankrupt United States of America, Incorporated (and their owners, the Federal Reserve Banks) legal title to you. Mrs. Lew was never told anything about the nature of the paperwork she was signing, but the “State of New York” became the trustee of little jacob joseph lew. And their very first act was to abuse the right of usufruct— the right of trustees to use the name of the beneficiary, so long as no harm is done to the beneficiary or their reputation.
You be the judge of the ultimate harm they have done to you and millions of others.
They immediately “redefined” jacob-joseph (and you) as a “US citizen” subject to the whims of the “United States Congress” acting as the government of the United States of America (Minor), a foreign, maritime, legislative democracy. This removed him— literally kidnapped him—from his natural jurisdiction on the land of New York State where he was born free and entitled to all his Natural and Unalienable rights—-and “subjected” him—as in “subject to a king” to the laws and jurisdiction of this foreign nation and its “territorial jurisdiction” and also made him a “surety” for the debts of the same “United States Congress” and the bankrupt “United States of America, Incorporated”. They enslaved him and you and millions of others.
Instead of acting as his Trustee, the “State of New York” acted as a predator and changed the baby’s name to “Jacob Joseph Lew”. This is the way he was taught to refer to himself and the way he was taught to sign his name and that allowed the legal presumption that he was knowingly and willingly and voluntarily operating in their foreign civil maritime “territorial jurisdiction” as a “vessel in commerce” belonging to the “State of New York” —a franchise of the bankrupt United States of America, Incorporated, organized under the auspices of the United States of America, (Minor).
This is a sophisticated form of identity theft carried out against unsuspecting women and babes in their cradles by international banking cartels operating governmental services corporations under conditions of gross self-interested fiduciary trust fraud and deceit.
Next, the operators of this fraud scheme issued bonds based on jacob-joseph’s estimated lifetime earnings, next, they had the baby born on the land declared “legally dead” and committed probate fraud against him, then, they acted as creditors against his earthly estate and filed maritime salvage liens against his “vessel” for his estimated “share” of the expenses of the United States of America, Incorporated—-known as the “National Debt”.
All this was done to jacob-joseph and to you and virtually every other child born on the land of the State of America before anyone left grade school. You were systematically entrapped, defrauded, kidnapped, transported to a foreign jurisdiction, suffered identity theft and mischaracterization, and were robbed of your natural rights and immunities by corporations in your employment and by individuals and institutions pretending to “represent” your lawful government and to act as your “trustees”.
This was done without your knowledge or consent on the basis of Third Party contracts (entered by the Franklin Delano Roosevelt Administration and your Mother) and under conditions of semantic and material deceit resulting in tainted, unilateral, undisclosed and grossly inequitable contracts serving to demean and enslave you.
After they killed off the baby born on the land via this legalized identity theft, the perpetrators settled in as parasites to feed off your labor and to “hypothecate” debt against your land, your homes, your businesses and everything else naturally belonging to you. The hired help— governmental services corporations merely under contract to provide stipulated services to the States—stole your identity, your credit cards, and your earthly estate—and proceeded to lord it over you, all without your knowledge or consent.
The facts of the fraud are revealed by “your” Birth Certificate, which is actually your fraudulent Death Certificate. Look at this document closely. It is issued by the Registrar, an Officer of the Probate Court— proof positive that your earthly estate has been probated. It is issued on bond paper, representing a debt and “promise to pay” bonds that have been issued based on the value of your earthly ESTATE, all numbered and securitized to benefit the United States of America, Incorporated and the very bankers and lawyers and politicians responsible for this deplorable criminality. It is issued to your given name styled in all capital letters, or in our example, to “JACOB JOSEPH LEW”.
This particular incorporated entity is an ESTATE trust created under Washington, DC Municipal Statute, Chapter 2, Vital Statistics, Section 7-201, paragraph 10. It is created under the auspices of the Washington, DC Municipality, a separate, independent, international city-state ruled as a plenary oligarchy by the members of the US CONGRESS, which acts as a Board of Directors for the UNITED STATES, INCORPORATED, which as you learned at First Base, owned and operated by the INTERNATIONAL MONETARY FUND, an agency of the UNITED NATIONS CORPORATION.
Right now, because the bankruptcy of the United States of America, Incorporated, finally settled on July 1, 2013, the parasites are setting up shop with new hosts—-the United Nations City State located in New York State. They are booting up a new “FEDERAL RESERVE” under UN auspices and launching a new UNITED STATES OF AMERICA, INCORPORATED, and attempting to roll over the old ESTATE trusts operated under names styled as in “JACOB JOSEPH LEW” and to “redefine” what is left of “you” as a transmitting utility operated as “JACOB J. LEW”.
If we don’t put a stop to this craziness ourselves every commercial corporation and petty despot on earth will be misusing our names and naming legal fiction entities after us and claiming to have contracts and relationships with “them” and us that don’t exist and accusing us of owing their debts or owing them for services we never ordered, and similar outrages.
We will have not only the New York State and the State of New York (old Federal Reserve version) and the STATE OF NEW YORK (IMF version) and NEW YORK (their latest outrage), but we will have The state of new York, and the State of new York, and the New State of York and the State of New york and the new state of york, and as many permutations of style and spelling and order of words you can imagine —–all of which are created for the sole purpose of semantic deceit, identity theft, and criminal fraud.
It’s time to bluntly accuse these false trustees of the crimes they have committed and continue to commit against the Americans, Australians, Canadians, most Europeans, Japanese, and others who have been victimized by the same or very similar “Systems” of fraud and enslavement perpetuated by these international banking cartels, the Bar Associations, and criminal politicians.
Right now, the push is on to “consolidate sovereign debt” and use it as leverage against all the nations and governments of the world and to give control of this leverage to the handful of evil geniuses running the UNITED NATIONS CORPORATION. The problem is that no such legitimate debts exist, and because of the fraud involved, no valid claims can be addressed to any of the people of any country. This mammoth faux pas and accounting nightmare has been caused by criminally corrupt governments, bankers, and lawyers—-and yes, by people who have been complacent and who have bought into the propaganda and the lies spun by these self-interested con artists for generations.
Now you know how the spiders spin their webs and you know how you wound up “removed” to Puerto Rican jurisdiction, paying debts you don’t owe, and so much more.
Tell your friends. Tell your neighbors. Set up your Grand Juries. Elect your Sheriffs and Judges to execute the Law of the Land against these hyenas. Boycott them and refuse service and refuse to pay any taxes for unwanted services. Serve your Notices to the members of Con- Gress that they do NOT “represent” you and do NOT represent your organic state. Do the same with the so-called Governors. Don’t let anyone or anything “represent” you. Show up and present yourself. Bring suit against the probate court for fraud perpetuated against you. File liens and commercial affidavits against these corporations, judges, clerks, lawyers, bankers, politicians—-the whole kit and caboodle. They aren’t “public officials”. None of them have taken a single proper oath of any public office. They are nothing but private corporate “officers” impersonating lawful public officials—-criminals, in other words. They are all con artists knowingly or unknowingly occupying vacated public offices and abusing the assumed “powers” of those offices for private gain.
Most of all, inform the sheriffs, police, provost marshals, militia members, and members of the military. Educate them so that they have no excuse for condoning, supporting, or enforcing the “acts” and “orders” of these charlatans.
December 1st, 2014 by olddog
There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months. The last time this happened was during the second half of 2008, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months. Well, now it is happening again, but this time the stakes are even higher.
When the price of oil falls dramatically, that is a sign that economic activity is slowing down. It can also have a tremendously destabilizing effect on financial markets. As you will read about below, energy companies now account for approximately 20 percent of the junk bond market. And a junk bond implosion is usually a signal that a major stock market crash is on the way. So if you are looking for a “canary in the coal mine”, keep your eye on the performance of energy junk bonds. If they begin to collapse, that is a sign that all hell is about to break loose on Wall Street.
It would be difficult to overstate the importance of the shale oil boom to the U.S. economy. Thanks to this boom, the United States has become the largest oil producer on the entire planet.
Yes, the U.S. now actually produces more oil than either Saudi Arabia or Russia. This “revolution” has resulted in the creation of millions of jobs since the last recession, and it has been one of the key factors that has kept the percentage of Americans that are employed fairly stable.
Unfortunately, the shale oil boom is coming to an abrupt end. As a recent Vox article discussed, OPEC has essentially declared a price war on U.S. shale oil producers…
For all intents and purposes, OPEC is now engaged in a “price war” with the United States. What that means is that it’s very cheap to pump oil out of places like Saudi Arabia and Kuwait. But it’s more expensive to extract oil from shale formations in places like Texas and North Dakota. So as the price of oil keeps falling, some US producers may become unprofitable and go out of business. The result? Oil prices will stabilize and OPEC maintains its market share.
If the price of oil stays at this level or continues falling, we will see a significant number of U.S. shale oil companies go out of business and large numbers of jobs will be lost. The Saudis know how to play hardball, and they are absolutely ruthless. In fact, we have seen this kind of scenario happen before…
Robert McNally, a White House adviser to former President George W. Bush and president of the Rapidan Group energy consultancy, told Reuters that Saudi Arabia “will accept a price decline necessary to sweat whatever supply cuts are needed to balance the market out of the US shale oil sector.” Even legendary oil man T. Boone Pickens believes Saudi Arabia is in a stand-off with US drillers and frackers to “see how the shale boys are going to stand up to a cheaper price.” This has happened once before. By the mid-1980’s, as oil output from Alaska’s North Slope and the North Sea came on line (combined production of around 5-6 million barrels a day), OPEC set off a price war to compete for market share. As a result, the price of oil sank from around $40 to just under $10 a barrel by 1986.
But the energy sector has been one of the only bright spots for the U.S. economy in recent years. If this sector starts collapsing, it is going to have a dramatic negative impact on our economic outlook. For example, just consider the following numbers from a recent Business Insider article…
Specifically, if prices get too low, then energy companies won’t be able to cover the cost of production in the US. This spending by energy companies, also known as capital expenditures, is responsible for a lot of jobs.
“The Energy sector accounts for roughly one-third of S&P 500 capex and nearly 25% of combined capex and R&D spending,” Goldman Sachs’ Amanda Sneider writes.
Even more troubling is what this could mean for the financial markets.
As I mentioned above, energy companies now account for close to 20 percent of the entire junk bond market. As those companies start to fail and those bonds start to go bad, that is going to hit our major banks really hard…
Everyone could suffer if the collapse triggers a wave of defaults through the high-yield debt market, and in turn, hits stocks. The first to fall: the banks that were last hit by the housing crisis.
Why could that happen?
Well, energy companies make up anywhere from 15 to 20 percent of all U.S. junk debt, according to various sources.
It would be hard to overstate the seriousness of what the markets could potentially be facing.
One analyst summed it up to CNBC this way…
“This is the one thing I’ve seen over and over again,” said Larry McDonald, head of U.S strategy at Newedge USA’s macro group. “When high yield underperforms equity, a major credit event occurs. It’s the canary in the coal mine.“
The last time junk bonds collapsed, a major stock market crash followed fairly rapidly.
And those that were hardest hit were the big Wall Street banks…
During the last high-yield collapse, which centered around debt tied to the housing sector, Citigroup lost 63 percent of its value in the following 60 days, Kensho shows. Bank of America was cut in half.
I understand that some of this information is too technical for a lot of people, but the bottom line is this…
Watch junk bonds. When they start crashing it is a sign that a major stock market collapse is right at the door.
At this point, even the mainstream media is warning about this. Just consider the following excerpt from a recent CNN article…
That swing away from junk bonds often happens shortly before stock market downturns.
“High yield does provide useful sell signals to equity investors,” Barclays analysts concluded in a recent report.
Barclays combed through the past dozen years of data. The warning signal they found is a 30% or greater increase in the spread between Treasuries and junk bonds before a dip.
If you have been waiting for the next major financial collapse, what you have just read in this article indicates that it is now closer than it has ever been.
Over the coming weeks, keep your eye on the price of oil, keep your eye on the junk bond market and keep your eye on the big banks.
Trouble is brewing, and nobody is quite sure exactly what comes next.
This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
September 23rd, 2014 by olddog
BY I M POWER / WEDNESDAY, 17 SEPTEMBER 2014 / PUBLISHED IN ABSOLUTE DATA
The Economist: Mainstream globalist propaganda reveals East/West conflict is a farce
published on redifinggod blog, on September 15, 2014
For anyone who might still believe that the US/NATO versus Russia/BRICS geopolitical confrontation is real…
…here is a little blast from the past…
…It is the cover from the January 9, 1988 issue of The Economist magazine. Note the phoenix rising from the ashes of burning national currencies, including the dollar.
The cover relates to an article on pages 9-10 titled Get ready for the phoenix, which foretold the financial drama we are now watching unfold in real time. Upon stumbling across them, I found the cover art and the article so striking that I thought they might be an online forgery, so I verified their authenticity with a research librarian at the Newspaper and Current Periodical Room of the Library of Congress. Both the cover and the article are quite real. Here are some excerpts (not necessarily in the order in which they appear in the article)…
>>> THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency. Prices will be quoted not in dollars, yen or D-marks but in, let’s say, the phoenix. The phoenix will be favoured by companies and shoppers because it will be more convenient than today’s national currencies, which by then will seem a quaint cause of much disruption to economic life in the last twentieth century…
…The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power…
…The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF…
…Governments are far from ready to subordinate their domestic objectives to the goal of international stability. Several bigger exchange-rate upsets, a few more stock-market crashes and probably a slump or two will be needed before politicians are willing to face squarely up to that choice…
…Pencil in the phoenix for around 2018, and welcome it when it comes. <<<
It’s all there: the SDR “cocktail” (basket) of currencies, the IMF’s central role, and the need to create “exchange rate upsets, stock-market crashes, and economic slumps” to make the public accept it. Seeing such an accurate forecast/blueprint, one wonders who was behind its publishing. So if we look into The Economist magazine, we find it is headquartered just a few blocks from the City of London and is owned by The Economist Group, which itself is owned by some rather interesting characters…
“The Economist Group is 50% owned by Pearson PLC via The Financial Times Limited. The bulk of the remaining shares are held by individual shareholders including the Cadbury, Rothschild, Schroder, Agnelli and other family interests as well as a number of staff and former staff shareholders.”
Beyond the Rothschild and Agnelli families, who are widely rumored to be part of the Illuminati, the Schroder family is particularly worth noting. The Schroders (also spelled Schroeder) are an old German ruling class family from Hamburg. One of the Schroder brood, Johann Heinrich Schroder, settled in London and founded J. Henry Schroder & Co. (now known simply as “Schroders,” one of the UKs largest investment banks) back in 1818. Later, in 1923, the firm expanded into New York by establishing J. Henry Schroder Banking Corporation. It is here that they joined with the Rockefeller family through Avery Rockefeller.
According to Avery’s bio…
“In 1928, Rockefeller joined the storied J. Henry Schroder Banking Corporation and became Assistant Treasurer in 1931. On 8 July 1936, Rockefeller co-founded Schroder, Rockefeller & Co., Inc. Its purpose was to take over the underwriting and general securities business formerly carried out by the J. Henry Schroder Banking Corporation.”
Schroder, Rockefeller & Co. is widely viewed as having been an integral part of the globalist bankers’ financial support infrastructure for the Nazis. And another of the Schroders, Johann Heinrich’s great-grandson, Baron Kurt von Schroeder
(shown here in his Nuremberg picture)…
…played a pivotal role..
“Schroeder was an important member of the Freundeskreis der Wirtschaft, which provided Adolf Hitler and his party with enough financial support to survive through the early 1930s. He also hosted a critical meeting on 4 January 1933 between Papen and Hitler that eventually led to Hitler’s appointment as Chancellor of Germany.”
The Nazis had (and continue to have) deep ties to the Anglo-American banking establishment, and also to The Economist. So this article came from a publication connected to the supposed “Nazi/Zionist Cabal.” Keep this in mind as we take a look at what that Cabal’s supposed enemies, the Chinese, are saying about the currently-unfolding global financial drama.
The Blueprint Revealed
I recently ran across a China Daily article titled Bracing for next big financial crisis, written by Giles Chance (a former World Bank staffer who is a professor at the Guanghua School of Management at Peking University). I strongly recommend following the link and reading the entire article, because it succinctly lays out the globalist plans and talking points for the next economic crisis. Once you correct for the article’s spin, it tells you everything. Here are some select passages, with my commentary added in brackets…
>>> Above the central banks, including the PBOC [People’s Bank of China], stands the Bank of International Settlements in Basel, Switzerland, which oversees the activities of national banking and monetary systems. The integration of markets and economies in a globalized world has given the BIS an increasingly important role in providing global financial stability… <<<
[So here we have a Chinese propaganda organ telling us that the BIS is in charge of all the central banks, including China’s. This is in spite of the fact that the BIS was a joint creation of the London bankers and the Nazis (who are supposedly the bad guys the BRICS are fighting). I will share more about the BIS later in the article.]
>>> In 2007, the year before the financial crash, the BIS warned that the global financial system was becoming overstretched and that the banking systems in the developed world were coming under pressure. But although the BIS has great influence, it does not have the power to compel any central bank. It can advise and warn, but it cannot give orders, and it does not issue its own money. As we know, the Federal Reserve Bank of New York and the European Central Bank in Brussels did not act on the well-timed warning from the BIS. <<<
[This passage establishes the BIS’s wisdom and foresight, as opposed to the foolishness of the national central banks. It also carries the implication that the BIS should be given the power to compel the national central banks to follow its wise guidance. Not mentioned is the fact that the financial crash was deliberately triggered by the very bankers he’s writing about, and that the foolishness of the national central banks’ responses was quite calculated. It allowed the banksters to harvest enormous wealth from the public and set up the pretext for the global institutions to step in and “provide stability.”]
>>> Against that background, you would expect today that if the BIS issued another warning, the world would pay attention. At the end of June, BIS General Manager Jaime Caruana gave a speech at its headquarters that contained a strong note of caution: “A new policy compass is needed to help the global economy step out of the shadow of the global financial crisis…” <<<
[By “a new policy compass,” he means a transition from the current dollar-based global financial system to the new, more centralized SDR-based multipolar/multilateral financial system]
>>> In his speech, Caruana blamed the continued dependence by the advanced economies, led by the United States, on ultra-loose monetary policy in place of the necessary deep-seated structural changes. <<<
[Here, he’s setting up the Federal Reserve (and the EU and Japan) to take the blame.]
>>> Caruana’s warning was reinforced by William White, head of the Economic Review and Development Committee at the headquarters of the Organization for Economic Co-operation and Development in Paris. As one of the very few experts who accurately forecast the 2008 crash, while head of research at the BIS, White is listened to with respect around the world.
In a recent interview, he said: “Riskfree bond rates are at enormously low levels, spreads are very low … it all looks and feels like 2007. And frankly, I think it’s worse than 2007…” <<<
[Here, another “wise” person from the BIS is warning that we’re approaching another financial crisis (that he and his buddies are engineering). It’s pretty easy to be a forecaster when you’re in on the plan. So if this year looks and feels like 2007, will next year be the next 2008?]
>>> But the US Federal Reserve Bank, the controller of the dollar-based global economy, does not agree with the BIS or William White. Several days after Caruana’s speech, Fed Governor Janet Yellen made it clear that she does not think that extremely low interest rates were the main culprit in the 2008 financial crisis, nor constitute the main problem now. <<<
[This is a very instructive passage. Note how the author specifically mentions the “dollar-based global economy.” Also note how he again paints the Federal Reserve as the morons who won’t listen to the sage globalists at the BIS. In this, he is setting up Janet Yellen for her upcoming scapegoat role, and he is tying interest rates to what will bring her down. The author says all this while failing to disclose that Janet Yellen is a member of the Board of Directors of the BIS, as is PBOC governor Zhou Xiaochuan]
>>> The disagreement between these two powerful financial institutions, the BIS and the New York Federal Reserve, has increased the risk that markets will crash as interest rates rise. Can China’s stability withstand another financial crash? Or would China emerge stronger? <<<
[Bingo! Here we are shown the trigger for the next financial crisis: Yellen will raise interest rates either “too soon” or by “too much” and crash the markets. “If only the wise BIS had had the power to rein in the Fed’s foolishness sooner, we could have avoided this,” they’ll say. Now let’s read on and see if China will emerge stronger.]
>>> China certainly has economic problems… But the forward-looking, courageous determination of its government to grasp some important nettles in its economic reform program will make it a key part of any solution to another Western financial crisis. <<<
[Here, the author does the requisite ass-kissing to his Chinese hosts, then boldly states that China will be “a key part of any solution to another Western financial crisis.” Solution, as in problem – reaction – solution. And the article has already shown us who caused the problem part of the equation: the unruly Western central banks, especially the Fed.]
>>> With the BIS and the US Federal Reserve Bank on opposite sides of the fence about global financial stability, the likelihood of another global financial crisis grows. But next time would indeed be different, because Western taxpayers would refuse to pay for another huge bank bailout, as they did in 2008-09. <<<
[So again, in case you missed it: BIS = good = wise = solution and US Federal Reserve Bank = bad = problem = another global financial crisis.]
>>> The emerging world, led by China, is economically in a much stronger position relative to the advanced countries than six years ago. Although in 2009 China may not have expected its sudden promotion to world power status, the country’s emergence since the crash as a global pillar of growth has significantly increased its global influence. <<<
[China didn’t expect its promotion to world power status? Au contraire, they knew it was coming because the globalists promised it to them, just like they promised what comes next…]
>>> Another crash on Wall Street would reinforce the attraction of the renminbi as a store of value and anchor of stability for other regional currencies…
It would underpin China’s global appeal as a peaceful force for stability in a volatile and troubled world, and hasten the re-engineering of shareholding in the major organizations of global governance, particularly at the World Bank and the IMF. Prepared or not, in the event of another crash China would find itself in a position of even greater global leadership and responsibility than today. <<<
[So here we are told that the next crash will be China’s gateway to top dog status, and it will “hasten the re-engineering of shareholding in the major organizations of global governance, particularly at the World Bank and the IMF.” This is exactly what I’ve been warning about. When the next crash comes, watch them break out their gold and other commodities to underwrite the global financial system in exchange for the governance changes.]
Now that we are done de-spinning the article, there are two things it brings up that deserve to be examined: the BIS and the Fed’s raising of interest rates…
The Bank for International Settlements (BIS)
This is the cover art for the BIS Archive Guide…
…It proudly features Montagu Norman (the Bank of England Governor from 1920-1944, circled in pink) and Hjalmar Schacht (the President of the Reichsbank from 1923-31 and 1933-39, and Hitler’s Economics Minister from 1934 – 1937, circled in red). You’ll hear more about these two a little later in the article. But first, let’s have a look at a little piece of BIS history…
>>> Between 1933 and 1945 the BIS board of directors included Walther Funk, a prominent Nazi official, and Emil Puhl, who were both convicted of war crimes at the Nuremberg trials after World War II, as well as Hermann Schmitz, the director of IG Farben, and Baron [Kurt] von Schroeder, the owner of the J.H.Stein Bank, which held the deposits of the Gestapo. There were allegations that the BIS had helped the Germans loot assets from occupied countries during World War II.
As a result of these allegations, at the Bretton Woods Conference held in July 1944, Norway proposed the “liquidation of the Bank for International Settlements at the earliest possible moment”. This resulted in the BIS being the subject of a disagreement between the American and British delegations. The liquidation of the bank was supported by other European delegates, as well as the United States (including Harry Dexter White, Secretary of the Treasury, and Henry Morgenthau), but opposed by John Maynard Keynes, head of the British delegation.
Fearing that the BIS would be dissolved by President Franklin Delano Roosevelt, Keynes went to Morgenthau hoping to prevent the dissolution, or have it postponed, but the next day the dissolution of the BIS was approved. However, the liquidation of the bank was never actually undertaken. In April 1945, the new U.S. president Harry S. Truman and the British government suspended the dissolution, and the decision to liquidate the BIS was officially reversed in 1948. <<<
So why were the British bankers so opposed to shutting down a bank with strong Nazi ties, you ask? Well, have a look at this UK Telegraph article (use this Internet Archive link if the direct link isn’t working)…
I recommend reading the whole article, as it contains more juicy information than I can include in this post. Here are the most relevant excerpts for the topic at hand (with my comments in brackets)…
>>> The BIS was founded in 1930, in effect by Montagu Norman and his close friend Hjalmar Schacht, the former president of the Reichsbank, known as the father of the Nazi economic miracle. Schacht even referred to the BIS as “my” bank. The BIS is a unique hybrid: a commercial bank protected by international treaty. Its assets can never be seized, even in times of war. It pays no taxes on profits…
A key sentence in the Bank of England documents is found on page 1,295. It reads: “The general attitude of the Bank of England directors of the BIS during the war was governed by their anxiety to keep the BIS to play its part in the solution of post-war problems”… [the bankers created the problem (World War 2), and they used the BIS to institute their solution (more centralized control of the world’s financial systems)]
…And here the secret history of the BIS and its strong relationship with the Bank of England becomes ever more murky.
During the war the BIS proclaimed that it was neutral, a view supported by the Bank of England. In fact the BIS was so entwined with the Nazi economy that it helped keep the Third Reich in business. It carried out foreign exchange deals for the Reichsbank; it accepted looted Nazi gold; it recognized the puppet regimes installed in occupied countries, which, together with the Third Reich, soon controlled the majority of the bank’s shares.
Indeed, the BIS was so useful for the Nazis that Emil Puhl, the vice-president of the Reichsbank and BIS director, referred to the BIS as the Reichsbank’s only “foreign branch”…
Every other month it hosts the Global Economy Meetings, where 60 of the most powerful central bankers, including Mark Carney, Governor of the Bank of England, meet. No details of meetings are released, even though the attendees are public servants, charged with managing national economies.
The BIS also hosts the Basel Committee on Banking Supervision, which regulates commercial banks, and the new Financial Stability Board, which coordinates national regulatory authorities. The BIS has made itself the central pillar of the global financial system. <<<
Speaking of these Global Economy Meetings, guess who attends them? According to the BIS website…
“The GEM comprises the Governors of 30 BIS member central banks in major advanced and emerging market economies that account for about four fifths of global GDP. The members of the GEM are the central bank Governors from Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, the Netherlands, Poland, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, Turkey, the United Kingdom and the United States and also the President of the European Central Bank and the President of the Federal Reserve Bank of New York. Governors from several other central banks attend the GEM as observers.”
So as you can see, beyond the public theater offered in Ukraine and the Middle East, and beyond all the East versus West propaganda offered in the mainstream and alternative media, China and the BRICS are dancing to the tune of the BIS puppet-masters just like everyone else. There is NO CONFLICT between “Nazi/Zionist” transatlantic bankers and BRICS bankers. In fact, Chinese and Russian banks (along with everyone else) are in the process of implementing the Basel 3 bank reforms put out by the Basel Committee on Banking Supervision, which is hosted by the BIS.
According to this China Daily article…
“Under China’s implementation of Basel III guidelines, systemically important banks need a minimum Tier 1 capital ratio of 9.5 percent, with total buffers of 11.5 percent, before the end of 2018.”
…and according to this Russia Today article…
“Basel III – a new set of global banking standards scheduled to come into force in Russia this year – should become another stimulus for the country’s lenders to rely on its own funds rather than State support. One of the key Basel III requirements is tighter rules for a banks’ own capital.”
The whole East versus West propaganda campaign is aimed at giving the hypnotized public a fairytale storyline for all the changes they’re going through. It also offers them scapegoats on whom they can pin all their problems. The international bankers are going to crash the current system and blame it on the Federal Reserve, then they’re going to introduce the BRICS as the heroes who save the day.
In fact, part of the purpose for the recent creation of the BRICS Bank is to give the BRICS a lifeboat while the West founders from the crash. The BRICS Contingent Reserve Arrangement…
“is a framework for the provision of support through liquidity and precautionary instruments in response to actual or potential short-term balance of payments pressures.
The objective of this reserve is to provide protection against global liquidity pressures. This includes currency issues where members’ national currencies are being adversely affected by global financial pressures.
The Bank would also provide assistance to other countries suffering from the economic volatility in the wake of the United States’ exit from its expansionary monetary policy.“
All this being said, when will the crash begin, and how long will it last? Given that the last crash lasted from 2007-2009 and contained a shocking “Lehman Moment,” it stands to reason that the next crash would also be a slow-motion train wreck with an even more shocking Lehman Moment. If the propaganda setup for the collapse is any indicator, the train wreck and New Lehman Moment will involve the raising of the Fed interest rate by Janet Yellen and perhaps a black swan event like a false-flag cyberattack or terrorist attack.
Looking at the interest rate component, the Fed will be meeting this Tuesday and Wednesday (September 16-17), and that could give us an indication of when things might kick off. The general consensus of the Fed watchers seems to be that interest rates will go up starting in the summer of 2015, with some estimates saying as early as March 2015. Will this start the train wreck? And since the BRICS bank isn’t scheduled to start lending until 2016, the New Lehman might not happen till then. But then again, they can always surprise us.
August 2nd, 2014 by olddog
Over a year ago I published an essay entitled ‘The Linchpin Lie: How Global Collapse Will Be Sold To The Masses’. This essay addressed efforts by the ever malicious Rand Corporation to create a false narrative surrounding the possibility of global collapse. Linchpin Theory, as it was named by it’s originator and Rand Corp. employee, John Casti, is I believe the very future of propaganda.
Every engineered crisis needs a clever cover story, and in Linchpin Theory, we are told that all human catastrophe is a mere natural product of the “over complexity” within various systems. Yes, there is no accounting of false flag geopolitics or elitist conspiracy, no acknowledgment of deliberately initiated chaos; such things do not exist in the world of “linchpins”. Rather, the Rand Corporation would have us believe that the world is a massive game of Jenga, and the supporting pieces just remove themselves from the teetering structure by magical and coincidental causality.
Today, the linchpin lie is now being carefully inserted into the mainstream narrative. I can’t say I was shocked to hear Alan Greenspan use its basic premise when he recently stated that:
I have come to the conclusion that bubbles…are a function of human nature. We don’t have enough observations, but my tentative hypothesis to what we’re dealing with is that both a necessary and sufficient condition for the emergence of a bubble is a protracted period of stable economic activity at low inflation. So it is a very difficult policy problem. I do believe that central banks that believe they can quell bubbles are living in a state of unrealism.
It is important that we understand what Greenspan is actually doing here. The former Fed chairman is asserting that economic bubbles like the derivatives bubble of 2008 are a “natural function”, like the seasons, and are out of the control of central bankers. The truth is that central bankers have never tried to “quell” economic bubbles, they have been deliberately creating them in order to position the global economy into a crisis which they can then exploit. Greenspan is not only diverting blame for all the past and future economic crashes central banks have engineered, he is also setting the propaganda stage for a great change in the dynamic of the central banking concept – what the IMF’s Christine Lagarde calls the “global economic reset”.
The current central banking structure gives the illusion of separation and sovereignty. Most people who have not researched the nature of the international banking cartel believe that the Federal Reserve, for instance, is a separate national entity from the Central Bank of Russia, or the Central Bank of China. They believe that these institutions act of their own accord rather than in concert with each other. The reality is, there is no Federal Reserve. There is no Central Bank of Russia. There are no separate entities. There are no Western banks and there are no BRICS. All of these banking edifices are merely front organizations for global financiers, as Council on Foreign Relations insider (and friend to the Rockefellers) Carroll Quigley made clear in his book, Tragedy And Hope:
It must not be felt that the heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up, and who were perfectly capable of throwing them down. The substantive financial powers of the world were in the hands of these investment bankers who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in the central banks.
A “global economic reset”, I suspect, will consist of a grand shift away from covert cooperation between central banks to an OPENLY centralized one world banking system, predicated on the concepts put forward by the IMF and led by the Bank for International Settlements, which has always been behind the scenes handing down commandments to the seemingly separate central banks of nations.
In order for this “reset” to be achieved, however, the establishment needs a historically monumental distraction. A distraction so confounding and terrifying that by the time the public has a chance to examine the situation rationally, the elites have already tightened the noose.
I have been warning ever since the beginning of the derivatives/debt collapse of 2007/2008 that the international financiers and globalists who created the artificially low interest rates and fiat lending bonanza would one day be required to fashion a considerably dangerous event in order to trigger the final collapse of the dollar based monetary system and replace it with a new currency (or basket of currencies), along with a new centralized financial authority.
This distracting event would have to rely on three very important strategies in order to succeed -
1) The use of what I call the “scattershot effect”; a swarm of smaller crises growing exponentially until it blurs together to create one dynamic calamity.
2) The use of multiple false paradigms in order to confuse the masses and pit them against one another in an absurd fight over fake and meaningless causes.
3) The use of deceptive benevolence on the part of the financial elite as they tap dance in to act as global “mediators”, ready to save the public from itself.
The end result would be a new brand of “world war” rather unique to history.
When most people imagine WWIII, they immediately envision images of nuclear bombs and mushroom clouds; however, I believe that when world war erupts, it may progress far differently from our cinematic assumptions. Regional conflicts are very likely, there is no doubt, but if one places himself in the shoes of the elites, one realizes that all out mechanized nuclear Armageddon is not really necessary to achieve the desired result of global governance.
Economic warfare alone could be extremely effective in initiating full spectrum fiscal implosion as well as mass starvation, mass panic, and mass desperation. All the signs lead me to believe that financial combat and 4th generation warfare will be used in the place of large armies and missiles.
The Scattershot Effect
Consider the sheer scope and number of crisis situations that have reached explosive proportions just in the past six months.
Syria continues to destabilize due to ISIS insurgents supported by the U.S., Saudi Arabia, and Israel; it is a horrifying storm which is now bleeding into other nations such as Iraq.
Iraq is on the verge of complete disintegration as the same western organized ISIS moves towards the outskirts of Baghdad.
Libya has imploded, with the American embassy evacuated, as well as the French and British, as various militias battle for supremacy.
The Ukraine crisis is nearing mutation into another beast entirely after the attack on Malaysian flight MH17. In just the past week, the EU has instituted sanctions against Russia, fighting has become even more fierce around Donetsk, Russia has been accused of firing artillery into Ukraine, and the U.S. now claims that Russia has violated the terms of the Intermediate Range Nuclear Forces treaty.
In the meantime, the Federal Reserve continues to taper QE3 while ignoring the unprecedented equities bubble they have birthed in the stock market, as well as refusing to answer the question as to who will actually buy U.S. Treasury debt if they do not? Our secret friend from Belgium? And what if this secret friend is, as I suspect, actually the IMF/BIS global loan shark duo? What then? Do we become yet another third world African-style debtor owing our very infrastructure to a financial bureaucracy on the other side of the world?
And what about the Baltic Dry Index, one of the few measures of global shipping demand that cannot be manipulated by outside money interests? Well, the BDI is back down to historic lows, falling 65% since January, signaling that the so-called “economic recovery” is not at all what it is cracked up to be.
Add to this the deluge of illegal immigration on the southern border, aided by the Obama Administration, as well as possible presidential impeachment and lawsuit proceedings, and you have a recipe for total chaos of the fiscal variety.
If the first six to seven months of 2014 have been this frenetic, how bad will the next six months be?
We are all aware of the prevalence of the false Left/Right paradigm in American politics. Hopefully most people in the Liberty Movement understand, for example, that any impeachment or lawsuit proceedings against Barack Obama will be nothing more than a crafted circus designed to accomplish nothing – a con game to placate conservatives with useless top-down solutions while the country burns around their ears.
There are other false paradigms that are not so clear to some, though…
The false Israel/Hamas paradigm has certainly duped a particular subsection of Americans and even a few patriots, even though it is historical fact that the creation of Hamas itself was funded and supported by the Israeli government. Why do Israeli politicians put money and arms at the disposal of Muslim extremist groups like Hamas and ISIS, only to enter into brutal conflict with them later? Could it be that the Israeli government does not have the best interests of the Israeli people at heart? Could it be that Israel is being used by internationalists as a catalyst for chaos? It is vital that we question the intentions behind such contrary actions in the Middle East.
Why has the U.S. government (Democrats and Republicans), Saudi Arabia, and Israel put support behind the ISIS caliphate in Iraq after spending decades of time, billions in resources, and thousands of lives, attempting to overrun and dominate the region? Why are these governments creating enemies that will later try to harm us?
It is all about false paradigms; dividing the masses into numerous conflicting sides and pitting them against each other when they should be fighting against the elites.
The false East/West paradigm is perhaps the most dangerous lie facing free men today. It is a lie that may very well define our generation if not our century. I have outlined in multiple articles the substantial evidence that proves beyond a doubt that Russia and China are members of the globalist agenda, and that the tensions between our two hemispheres are completely fabricated.
The latest announcement of a BRICS bank to rival the IMF is yet another scheme to perpetuate the illusion that the elites of these nations are at odds. In fact, the BRICS conference mission statement makes it clear that developing nations have no intention of breaking from the IMF (and certainly not the BIS). Instead, the BRICS bank is meant to provide “leverage” to “force” the IMF to become more inclusive, and hand over more power and participation. Vladimir Putin had this to say at the latest summit:
In the BRICS case we see a whole set of coinciding strategic interests. First of all, this is the common intention to reform the international monetary and financial system. In the present form it is unjust to the BRICS countries and to new economies in general. We should take a more active part in the IMF and the World Bank’s decision-making system. The international monetary system itself depends a lot on the US dollar, or, to be precise, on the monetary and financial policy of the US authorities. The BRICS countries want to change this.
Brazilian President Dilma Rousseff insisted that the BRICS were not seeking to distance themselves from the Washington-based International Monetary Fund:
On the contrary, we wish to democratize it and make it as representative as possible…
Putin and the BRICS commonly rail against the “unipolar” financial system revolving around the U.S. dollar, but in the end they are only controlled opposition, and their solution is to place even more power into the hands of the IMF (a supposedly U.S. government controlled institution), creating a truly unipolar world order. If the U.S. loses its IMF veto status this year due to lack of allocated funds, and the BRICS dump the dollar as world reserve, this may very well happen.
As sanctions between Russia and the U.S. snowball, a perfect rationalization for a dollar decoupling will be created that very few people would have believed possible only a few years ago. It is only a matter of time before fiscal warfare escalates to destructive levels. Russia will inevitably cut off gas exports to the EU, and the BRICS will inevitably drop the U.S. dollar as a world reserve standard.
The U.S. relationship to the EU is also currently being presented as dubious, and this is not by accident. Failing relations between America and Germany are yet more theater for the masses to chew on. Western allies have been spying on each other for decades, but somehow the exposure of CIA activities in Germany is shocking news? The NY Fed suddenly attacks Deutsche Bank, seeking expanded monitoring and regulation? Germany’s business interests are highly damaged by U.S. sanctions against Russia? It would seem as though someone is trying to create an artificial divide between elements of the EU and the U.S.
I believe that the narrative is being prepared for a faked financial breakup between the U.S. and many of its former allies, isolating the U.S., and destroying the dollar, but to what end? To answer that question, we must ask WHO ultimately benefits from these actions?
The Rise Of The Hero Bankers
In June of last year, the Bank for International Settlements, the central bank of central banks whose history began with the financial support of the Third Reich, released a statement warning that “easy money” from central banks was creating a dangerous bubble in stock markets around the world.
The IMF, too, has been pushing warnings of stock bubble collapse into the mainstream.
In June of this year, the BIS, a normally obscure and secretive organization, released another statement pronouncing that government had been led into a “false sense of security” by easy monetary policy and low interest rates, making the world economy perpetually unstable.
For an organization so covert and occult, the BIS sure has become rather candid lately. Frankly, I agree with everything they have said. However, I do not agree with the hypocrisy of the BIS, which dominates the decisions of all of its member banks, publicly criticizing policies which it most likely scripted itself. Why would the BIS suddenly denounce fiscal methods it used to promote? Because the BIS is setting itself up as the great prognosticator of a collapse that IT HELPED ENGINEER.
After the great financial war has subsided, and the people are suitably poverty stricken and desperate, it will be institutions like the BIS and IMF that swoop in to “save the day”. Their offer will be to consolidate economic control into the hands of an elite group of bankers “not affiliated” with any particular nation state, thereby insulating them from “political concerns”. The argument will be that national sovereignty is a bane on the back of humanity. They will claim that the catastrophe will continue until we “simplify” and streamline our economic and political systems. They will present themselves as the heroes of the age; the ones who predicted the crisis would occur, and the ones who had a solution ready to save the day (after sufficient death and destruction, of course).
As long as people remain obsessed with false paradigms and faux enemies, the establishment’s goal of complete centralized dominance will be predictably attainable.
If we change our focus to the internationalists as the true danger instead of playing their game by their rules, then things will become far more interesting…
You can contact Brandon Smith at: email@example.com. Alt-Market, where this article first appeared, is an organization designed to help you find like-minded activists and preppers in your local area so that you can network and construct communities for mutual aid and defense. Join Alt-Market.com today and learn what it means to step away from the system and build something better.
If we change our focus to the internationalists as the true danger instead of playing their game by their rules, then things will become far more interesting… !!!!!! Well now, isn’t it strange that this old high school drop out has been saying the same thing for years.
ELIMINATE THE ELITE BANKERS BEFORE IT’S TOO LATE.
July 15th, 2014 by olddog
By Tony Cartalucci
When the special interests who created and direct the agenda of the European Union disagree with member states, the true nature of this supranational enterprise becomes painfully apparent – one of dictatorial special interests pursing regional policy that benefits none of its individual member states. No example of this can be clearer than the dispute that has emerged over the construction of Russia’s South Stream natural gas pipeline set to run through Bulgaria, Serbia, Hungary, and Italy.
The pipeline produces a large number of benefits for each of the nations it passes through, as well as for energy markets on either end of the pipeline. For the people and governments of these nations set to benefit most from the pipeline, the deal is an attractive, long-term investment. For the special interests that have created and currently direct the EU – on the other hand – it poses as a direct threat to their designs of continued expansion and corporate-financier hegemony beyond the collective borders of today’s EU.
For the hegemon, coexistence and collaboration are not options – thus the benefits of the South Stream pipeline escape them. Instead, these hegemonic special interests seek to control their own pipeline and energy markets on either side of it, and this can be seen developing along several fronts including the Southern Corridor Project, beginning in Azerbaijan along the Caspian Sea.
Energy and foreign policy expert Sinan Ulgen of the US government and corporate-financier funded Carnegie Europe think-tank complained about the disparity between the EU Commission’s stance, and that of individual EU member states in an Anadolu Agency (AA) article titled, “Russian South Stream gas pipeline divides EU,” stating:
“…the EU’s main concern about South Stream is that the project would increase its dependence on Russian gas. Last year a third of its consumed gas was supplied by Russia.
Additionally the AA article would state:
While the European Commission opposes Russia’s South Stream gas pipeline project, certain EU countries like Austria and Italy continue to openly support the world’s most expensive pipeline project, which aims to transport Russian gas by bypassing Ukraine.
For the last two years, Russia has signed bilateral agreements with Italy, Bulgaria, Serbia, Hungary, Greece, Slovenia, Austria and Croatia for the construction of the South Stream gas pipeline, which is estimated to cost nearly US$40 billion according to the Moscow Times. Gazprom recently announced however that it was abandoning construction of the Italian portion of the pipeline.
These agreements were deemed a breach of EU anti-trust law by the European Commission in December. And, in April, following the annexation of the Crimean peninsula by Russia, the European Parliament voted for the South Stream project to be stopped.
AA would also cite another corporate-financier funded think tank, Chatham House – also complaining about EU members pursuing their own interests in contradiction to the EU Commission’s dictates. The unelected EU Commission appears to be pursing its own extraterritorial geopolitical pursuits ahead of those of the individual member states and their respective populations. That corporate-financier funded “think tanks” are focused on this “divide” and championing the EU Commission’s agenda over that of the individual EU members it allegedly represents fully exposes the EU for what it truly is, a dysfunctional supranational dictatorship.
And what is done in the name of the EU by its institutions like the EU Commission, which admittedly does not represent the best interests or desires of those it claims to represent, unfortunately and perhaps unfairly reflects on the EU as a whole. For example, and as part of the energy debate, the current EU support of the regime occupying Kiev, Ukraine, taints all of Europe, even as many EU member states attempt to move cautiously or even in opposition to the greater agenda the EU Commission and others are pursuing.
While the EU promotes itself as a bastion of freedom, stability, and prosperity, it appears increasingly more like a hegemonic bloc, dictating to, rather than acting as a representative of, the European people. The slogan “Toward a Europe Whole and Free” rings hollow when the EU Commission begins dictating policy to individual states, and curtailing progress that benefits both individual nations and their people.
The EU, in this light, appears more of an autocratic oligarchical consolidation of regional power and resources, not a democratic collaboration between nations. A slogan like “Toward a Europe Whole and Free” appears then to represent Europe, but only from the perspective of special interests seeking to loot the region collectively, rather than nation-by-nation. The dysfunction and dictatorial nature of the EU Commission and other apparatuses within the supranational bloc serve as a cautionary example for other nations seeking to construct their own alliances – from Asia’s ASEAN-AEC (Asian Economic Community), to regional alliances between Russia, China and with nations along their peripheries.
Alliances that include obligations that usurp national sovereignty are not alliances at all, they are hegemonic infiltration by special interests who would rather see a village place their valuables in a single safe for them to crack and loot, rather than take the time and trouble to rob each individual home. Europe must decide whether it will continue along a path of internal conflict with its alleged EU representatives tainting their collective populations, cultures, and histories, or reform the EU into an institution that allows collaboration and national sovereignty to exist in tandem.
Tony Cartalucci, Bangkok-based geopolitical researcher and writer, especially for the online magazine “New Eastern Outlook”.
Copyright © 2014 Global Research
July 12th, 2014 by olddog
Thomas Jefferson, the author of America’s July 4, 1776 Declaration of Secession from the British empire, was a lifelong advocate of both the voluntary union of the free, independent, and sovereign states, and of the right of secession. “If there be any among us who would wish to dissolve this Union or to change its republican form,” he said in his first inaugural address in 1801, “let them stand undisturbed as monuments of the safety with which error of opinion may be tolerated where reason is left to combat it.”
In a January 29, 1804 letter to Dr. Joseph Priestley, who had asked Jefferson his opinion of the New England secession movement that was gaining momentum, he wrote: “Whether we remain in one confederacy, or form into Atlantic and Mississippi confederacies, I believe not very important to the happiness of either part. Those of the western confederacy will be as much our children & descendants as those of the eastern . . . and did I now foresee a separation at some future day, yet should feel the duty & the desire to promote the western interests as zealously as the eastern, doing all the good for both portions of our future family…” Jefferson offered the same opinion to John C. Breckinridge on August 12, 1803 when New Englanders were threatening secession after the Louisiana purchase. If there were a “separation,” he wrote, “God bless them both & keep them in the union if it be for their good, but separate them, if it be better.”
Everyone understood that the union of the states was voluntary and that, as Virginia, Rhode Island, and New York stated in their constitutional ratification documents, each state had a right to withdraw from the union at some future date if that union became harmful to its interests. So when New Englanders began plotting secession barely twenty years after the end of the American Revolution, their leader, Massachusetts Senator Timothy Pickering (who was also George Washington’s secretary of war and secretary of state) stated that “the principles of our Revolution point to the remedy – a separation. That this can be accomplished without spilling one drop of blood, I have little doubt” (In Henry Adams, editor, Documents Relating to New-England Federalism, 1800-1815, p. 338). The New England plot to secede from the union culminated in the Hartford Secession Convention of 1814, where they ultimately decided to remain in the union and to try to dominate it politically instead. (They of course succeeded beyond their wildest dreams, beginning in April of 1865 up to the present day.)
John Quincy Adams, the quintessential New England Yankee, echoed these Jeffersonian sentiments in an 1839 speech in which he said that if different states or groups of states came into irrepressible conflict, then that “will be the time for reverting to the precedents which occurred at the formation and adoption of the Constitution, to form again a more perfect union by dissolving that which could no longer bind, and to leave the separated parts to be reunited by the law of political gravitation…” (John Quincy Adams,>The Jubilee of the Constitution, 1939, pp. 66-69).
There is a long history of American newspapers endorsing the Jeffersonian secessionist tradition. The following are just a few examples.
The Bangor, Maine Daily Union once editorialized that the union of Maine with the other states “rests and depends for its continuance on the free consent and will of the sovereign people of each. When that consent and will is withdrawn on either part, their Union is gone, and no power exterior to the withdrawing [state] can ever restore it.” Moreover, a state can never be a true equal member of the American union if forced into it by military aggression, the Maine editors wrote.
“A war … is a thousand times worse evil than the loss of a State, or a dozen States” the Indianapolis Daily Journal once wrote. “The very freedom claimed by every individual citizen, precludes the idea of compulsory association, as individuals, as communities, or as States,” wrote the Kenosha, Wisconsin Democrat. “The very germ of liberty is the right of forming our own governments, enacting our own laws, and choosing or own political associates … The right of secession inheres to the people of every sovereign state.”
Using violence to force any state to remain in the union, once said the New York Journal of Commerce, would “change our government from a voluntary one, in which the people are sovereigns, to a despotism” where one part of the people are “slaves.” The Washington (D.C.) Constitution concurred, calling a coerced union held together at gunpoint (like the Soviet Union, for instance) “the extreme of wickedness and the acme of folly.”
“The great principle embodied by Jefferson in the Declaration of American Independence, that governments derive their just powers from the consent of the governed,” the New York Daily Tribune once wrote, “is sound and just,” so that if any state wanted to secede peacefully from the union, it has “a clear moral right to do so.”
A union maintained by military force, Soviet style, would be “mad and Quixotic” as well as “tyrannical and unjust” and “worse than a mockery,” editorialized the Trenton (N.J.) True American. Echoing Jefferson’s letter to John C. Breckinridge, the Cincinnati Daily Commercial once editorialized that “there is room for several flourishing nations on this continent; and the sun will shine brightly and the rivers run as clear” if one or more states were to peacefully secede.
All of these Northern state editorials were published in the first three months of 1861 and are published in Howard Cecil Perkins, editor, Northern Editorials on Secession (Gloucester, Mass.: 1964). They illustrate how the truths penned by Thomas Jefferson in the Declaration of Independence — that the states were considered to be free, independent, and sovereign in the same sense that England and France were; that the union was voluntary; that using invasion, bloodshed, and mass murder to force a state into the union would be an abomination and a universal moral outrage; and that a free society is required to revere freedom of association — were still alive and well until April of 1865 when the Lincoln regime invented and adopted the novel new theory that: 1) the states were never sovereign; 2) the union was not voluntary; and 3) the federal government had the “right” to prove that propositions 1 and 2 are right by means murdering hundreds of thousands of fellow citizens by waging total war on the entire civilian population of the Southern states, bombing and burning its cities and towns into a smoldering ruin, and calling it all “the glory of the coming of the Lord.”
[LewRockwell.com, July 4, 2014]
For those who have read this essay, does your heart not expand with the lust for freedom? Does the adrenalin of freedom not make you light headed? Can any one deny that this is what we need to enforce on the corporate scumbags that rule our country? Yes I agree there would be many problems to solve if America was not a slave state to the Banksters, but how little confidence would one have to not pursue it? Who care’s if the Vatican has title from the Dead King of England. We did not have a problem when we thought we were taking it by force. SO WHAT’S WRONG WITH DOING IT RIGHT THIS TIME? For those who have not been educated yet, here is the real history of America.
The King of England had seeded America, along with All the Kings holdings and power to the Pope to recover his soul for the sin of Divorce. The Banksters were hired by the Pope to control the Governments, and now we are sucking hind tit as slaves to the corporations that have managed to control the Government. America is run as a profit producing business as witnessed by all the laws they use to fine us. It’s all one huge extortion racket that has expanded globally. Pretty soon we will have to get a permit to take a crap. Hint, Never go through an air-port without some change in your pocket, just in case Nature Calls.
May 13th, 2014 by olddog
by Ryan McMaken on May 13, 2014
The Supreme Court’s recent decision on prayer at government meetings reminds me that Supreme Court “season” is upon us, and for the next two months or so, we can expect to see the court decide on a variety of cases that can have profound impacts on the lives of citizens and non-citizens alike. The court’s decision in Town of Greece vs. Galloway has produced a lot of commentary on both sides, with much discussion about the dynamics between justices, and how Justice Kennedy must have been in a pro-prayer mood that day, since his decisions appear to be made on a variety of unknowable whims.
Nearly all of this commentary contains the assumption that it is perfectly normal, and probably laudable, that the Supreme Court has the power to decide the legality of virtually everything under the sun, from the death penalty to where local governments can build strip malls.
If there was ever any doubt that public schooling has been an immense success when it comes to conditioning children to blindly accept even the most implausible myths of governance, we only need look to the high regard in which most Americans hold the Supreme Court. The fact that nine modern philosopher kings are empowered to sit in judgment of every American law and custom, right down to whether or not a city council meeting, in a town virtually no American could find on a map, can include some bland prayer time. It troubles no school child that he is taught that democracy is the source of legitimacy for all governments one minute, and then the next minute is told he should fully trust nine lawyers in robes in Washington, D.C. to have the final word on law for 300 million Americans.
The proposition that nine people should tell 300 million people what sorts of laws they should make is rather ludicrous on its surface, but the justification largely rests on the assertion that the judges are somehow above politics and make decisions based on nearly pure reason. Political scientists and most people with experience in the legal profession no doubt know this is nonsense, but the average American is far more likely to be accepting of the long-standing myth that the court is a sort of backstop that prevents “bad” American laws from being allowed to stand. “Sure,” they might say, “Congress and the president, which are infected by vulgar politics, can do many horrible things, but the Supreme Court will dispassionately evaluate them and decide laws strictly on their legal merits.”
This view of the court is of course hopelessly fanciful, and the truly political nature of the court is well documented. Its politics can take many forms. For an example of its role in political patronage, we need look no further than Earl Warren, a one-time candidate for president and governor of California, who was appointed to the court by Dwight Eisenhower. It is widely accepted that Warren’s appointment was payback for Warren’s non-opposition to Eisenhower’s nomination at the 1952 Republican convention. The proposition that Warren somehow transformed from politician to Deep Thinker after his appointment is unconvincing at best. Or we might point to the famous “switch in time that saved nine” in which Justice Owen Roberts completely reversed his legal position on the New Deal in response to political threats from the Franklin Roosevelt administration. Indeed, Supreme Court justices are politicians, who behave in the manner Public Choice theory tells us they should. They seek to preserve and expand their own power.
The court, jealous of its power, and reluctant to hand down decisions that might actually cause the court to lose prestige, is at times careful to reflect the majority opinion regardless of how atrocious it might be. To see this, we need look no further than Korematsu vs. The United States in which the court declared it perfectly legal to round up American citizens and throw them into concentration camps.
The court forever plays a careful balancing act with both the public and with other branches of the federal government in which if continually pushes the bounds of federal power without rocking the boat to the point of calling its legitimacy into question among the majority of the population. Naturally, Congress and the presidency, themselves committed to untrammeled federal power, have no problem with most of this on most occasions, except perhaps in the details.
Bizarrely, however, the court has even managed to cultivate a reputation as a limit on the power of government, and that justices will rein in the state because it is committed, however imperfectly, to the Constitution of the United States. This is wishful thinking in the extreme, however, since the Constitution is nothing more than what the Supreme Court says it is, and this has been well established since Justice Marshall first introduced judicial review into the court’s decisions. If the Constitution was designed to prevent rule by judges (which may or may not be the case), it has clearly failed in its mission. Moreover, the court acts to insert intellectual legitimacy into laws and policies that formed out of nothing more that interest group lobbying, political payoffs, and even outright corruption. Once these laws receive the imprimatur of the Supreme Court, they cease to be political acts, questionable in origin, and take on the life of perpetually established law and precedent.
The public’s deference to the court and its decisions is the key factor in the court’s immense power, and the myth of the court as the protector of what’s left of the Constitution is especially powerful. But, as Ludwig von Mises noted in Liberalism, as an agent of the Federal government, the idea of the court as a friend to limited government is an absurdity:
The tendency to impose oppressive restraints on private property, to abuse political power, and to refuse to respect or recognize any free sphere outside or beyond the dominion of the state is too deeply ingrained in the mentality of those who control the governmental apparatus of compulsion and coercion for them ever to be able to resist it voluntarily. A liberal government is a contradictio in adjecto. Governments must be forced into adopting liberalism by the power of the unanimous opinion of the people; that they could voluntarily become liberal is not to be expected.
Naturally, the court does not limit itself at all, but it knows it is nonetheless limited by public opinion at least as well as anyone else. The court’s strenuous efforts to maintain an aura of majesty and intellectual loftiness can be seen in its refusal to allow television cameras in its hallowed halls or any sort of direct observation by the public at large. The judges wear academic robes and sit on their high bench. They could just as easily do their jobs in business suits while sitting at the same height as everyone else. Of course, if that were the case, the justices would just look like the glorified county commissioners they are, and the court’s propaganda war against the public is essential in maintaining its near total immunity from any meaningful oversight from anyone at all.
Here we go again! Out of one of America’s most esteemed political commentary organizations comes the same old emission of the facts. By the above article any uninformed reader would conclude that this country really is a democracy, but run by self serving people. Absolutely nothing close to the truth was addressed. THE TRUTH concerning this situation in the Supreme Court is, they do not represent the people, they represent the United States Corporation and the oligarchy that owns it. AND THAT is why the organic Constitution is of no concern to them. AND THAT is why we now live in a slave state with brutal law enforcers assaulting the people for NON VICTIMS CRIMES. AND THAT is why we have been beguiled by a despicable education and meda industry to accept their theft of our freedom.
May 8th, 2014 by olddog
Despite popular belief, very few things in our world are exactly what they seem. That which is painted as righteous is often evil. That which is painted as kind is often malicious. That which is painted as simple is often complex. That which is painted as complex often ends up being disturbingly two dimensional. Regardless, if a person is willing to look only at the immediate surface of a thing, he will never understand the content of the thing.
This fact is nowhere more evident than in the growing “tensions” between the elites of the West and the elites of the East over the crisis in Ukraine.
I am continually astonished at the refusal of many otherwise intelligent people to consider the evidence or even the possibility that there is, in reality, no fundamental political or philosophical conflict between the power brokers of the East and the West. As I outlined in great detail in Russia Is Dominated By Global Banks, Too, the truth is they are both working toward the same goal; and both ultimately benefit from an engineered and theatrical display of international brinksmanship.
Russia, like the United States, is utterly beholden to globalist financiers through organizations like the International Monetary Fund and the Bank for International Settlements. Russia’s global economic adviser in matters ranging from investment image to privatization is none other thanGoldman Sachs.
Goldman Sachs has also worked closely with the Ukrainian government since 2011, and it started its advisory work with Ukraine for free. (Whenever Goldman Sachs does something for free, one should take special note.) Banking elites have been working both sides of the fence during the Russia versus Ukraine charade.
Russia has continued to borrow billions of dollars from Western banks, including Deutsche Bank and Credit Suisse, year after year, proving that they are not averse in the slightest to working closely with "evil Western robber barons".
Russian President Vladimir Putin meets with Mr. New-World-Order himself, Henry Kissinger, on a regular basis; and according to Putin’s press secretary, they are “old friends.” Putin’s meetings with Kissinger began almost immediately after he first took power in 2000.
Putin’s relationship with Kissinger has been so pronounced that the Russian Foreign Ministry gave Kissinger an honorary doctorate in diplomacy, and Putin placed Kissinger at the head of a bilateral “working group” — along with former KGB head and multilateralist (globalist) Gen. Yevgeny Primakov — dealing with foreign policy.
In more recent news, I would also remind pro-Putin cheerleaders that Putin and the Kremlin first pushed for the IMF to take control of the Ukrainian economy, and the IMF is now demanding that Ukraine fight Russia in exchange for financial support. This might seem like irony to more foolhardy observers; but to those who are aware of the false East/West paradigm, it is all the part of a greater plan for consolidation of power.
Clearly, Putin and Russia are just two more puppet pieces on the globalist chessboard, pitted against other puppets in the West in a grand theater designed to distract and divide the masses through chaos. As Kissinger points out, in crisis there is opportunity.
What is the goal? They’ve already told us, openly, on numerous occasions.
The first great prizes of the New World Order are a global currency and centralized economic control. The elites are not satisfied with quiet dominance of individual economies. They want complete political homogenization and the end of all sovereignty. Period. With a global currency in place, the steps towards global government become quick and small.
Heads of state from around the world, including Putin, as well as international bankers and IMF representatives have all publicly called for the IMF to take charge of the global economic system through its Special Drawing Rights currency program.
However, for the SDR to become a dominant currency, certain issues must be resolved. Here’s a short list.
The U.S. Dollar Must Fall
The dollar must lose its world reserve status, and most likely collapse in relative value, before the SDR can be elevated. This is where mainstream pundits lose track of the facts. For them, the dollar is an invincible monetary element, a currency product as infinite as time. Their normalcy bias prevents them from ever acknowledging the many weaknesses of the Federal Reserve note, including our country’s inability to ever service its more than $200 trillion debt. Others believe the dollar is the NWO currency, and that the globalists are somehow U.S.-centric. The evidence posted above suggests otherwise. Globalists have no loyalty to any nation or culture. Their only loyalty is to the progression of their own power. If sacrificing the dollar or the U.S. as a whole furthers that power, then they will have no problem cutting us loose like a rotting appendage.
A Liquidity Replacement Must Be Introduced
As my regular readers know, I have been covering China’s progression toward a decoupling from the U.S. economy for years. China, in my view, has always been the key to the elitist shift into a truly global currency mechanism. The primary argument in the mainstream against the idea of a dollar collapse is that there is no other currency with ample liquidity to take the dollar’s place. Well, in the past couple of years, this has changed.
China and the banks it controls have issued approximately $25 trillion in debt instruments and monetization. This is often referred to as a “debt bubble” created through panic and a weakness in China’s economy and a response to slowed quantitative easing in the United States. I would take a slightly different position. China began issuing Yuan denominated debt instruments in 2005, years before the mainstream had any inkling of the impending derivatives collapse. From then up to today, there has been no practical purpose for China to produce these Yuan denominated equities and securities, unless their target has always been to expand the Yuan market in a covert way.
I would say that China’s monetization has been carefully and deliberately engineered in order to lay the foundation for a massive liquidity spike in the Yuan. The argument that China’s incredible debt generation is a sign of impending collapse may be misguided. U.S. debt, including unfunded liabilities, absolutely dwarfs China’s $25 trillion. China's Yuan debt has barely had time to accrue concrete interest. The U.S., on the other hand, is caught in an endless cycle of interest payments that are slowly but surely eating away the skeleton of our fiscal structure. If any economy is on the verge of implosion, it is that of the United States, not of China.
The Chinese need exponential Yuan circulation. They do not want the Yuan to replace the dollar; instead, they are preparing it for induction into the IMF’s Special Drawing Rights basket. WithChina set to become the world largest economy this year according to World Bank, their inclusion is assured.
But, when might this occur?
The IMF holds an international conference and policy meeting on the SDR every five years. During these meetings, the IMF decides if it will absorb a new currency into the basket and if it will expand the creation or circulation of SDRs around the world. Interestingly, the next IMF conference on the SDR just happens to be scheduled for the end of 2014 to the beginning of 2015.
Another strange coincidence: The U.S. Congress was supposed to vote on legislation for further capital allocations to the IMF by April. The vote never came. The new allocations were to fund an expansion of IMF programs and help with the greater inclusion of BRIC nations in governing decisions. If the U.S. government does not pass this legislation, Russia and other nations have demanded that the IMF move forward without the United States on reforms. At the very least, the U.S. would lose its veto power over IMF decisions. I believe that the timing of this is deliberate, that the U.S. is meant to lose its veto power and that the simultaneous SDR conference will announce the inclusion of the Chinese Yuan, setting the stage for the replacement of the dollar as world reserve.
The SDR will not immediately be issued as a commonly traded currency itself. Rather, the IMF will take over management of included currencies and denominate those currencies using SDR valuations. For example, $1 U.S. is worth only .64 SDR today. In the near future, I expect that the dollar will plummet in relation to the SDR’s value. We will still have our greenbacks when the IMF begins administrating our currency system, but the international and domestic worth of those greenbacks will fall to pennies. In turn, other currencies with stronger economic positions will rise in worth relative to the SDR.
I believe one of the primary determinations in a currency’s value compared to the SDR will be a country’s stockpile of gold. This is why Russia and China in particular have been purchasing precious metals at an unheard-of rate (and why U.S. gold reserves have never been audited). The IMF itself is one of the world’s largest holders of physical gold, with nearly 3,000 metric tons (officially). With the crash of the dollar system and investors clamoring for a reliable hedge to protect whatever savings they have left, gold could conceivably skyrocket into the $5,000 to $10,000 per-ounce range. Governments holding the metal will be favorably placed during an implementation of the SDR as the new reserve standard.
A Cover Event Must Be Created
The centralization of power is best achieved during moments of bewildering calamity. The conjuring of crises is one of the oldest methods of elitist dominance. Not only can they confuse and frighten the masses into malleability, but they can also ride to the public’s rescue as heroes and saviors later on. The Hegelian dialectic is the mainstay of tyrants.
The destruction of the dollar and the institution of a global economic bureaucracy are not actions that can be executed openly by international financiers. These events will coincide with extreme catastrophe, likely worse than the Great Depression era, with millions upon millions of people losing the ability to financially support themselves and their families. Crime, death and public discontent will surely follow. People will be looking for someone to blame. This is where the false East/West paradigm comes in.
It is widely expected that as sanctions snowball between Russia and the U.S. that the dollar will end up on the chopping block. China has asserted its support for Russia in opposition to NATO interference in Ukraine. The stage has been set. I have warned for quite some time that the development of East/West tensions would be used as a cover for a collapse of the dollar system. I have warned that among the American media this collapse would be blamed on an Eastern dump of foreign exchange reserves and treasuries, resulting in a global domino-effect ending U.S. world reserve status. In turn, the international community would be conditioned to see this as the mere bumbling of a spoiled America gone power-mad, rather than the result of a covert program of economic destabilization. This might lead to all-out war or a fiscal firestorm that leaves much of the world crippled and desperate for aid.
In either case, the elitist plan is to use scapegoats and false enemies to draw our attention away from the real culprits: the international banks themselves. Make no mistake: This fight is not about President Barack Obama, it is not about Putin and it is not even about the Federal Reserve. These men are tools, errand boys, public mascots. Do not be fooled by the global stage play being perpetrated. Whatever happens in Ukraine and whatever happens between Russia, China and the West, there are only two real sides to this battle: the elitist establishment, and those who are smart enough to recognize their poison.
You can contact Brandon Smith at: firstname.lastname@example.org. Alt-Market is an organization designed to help you find like-minded activists and preppers in your local area so that you can network and construct communities for mutual aid and defense. Join Alt-Market.com today and learn what it means to step away from the system and build something better.
February 25th, 2014 by olddog
Stockman – $500 Trillion Derivative Bomb Threatens The World!
Today David Stockman warned King World News that a terrifying $500 trillion derivative bomb threatens the entire world. He also went on to caution about a second danger facing the world. KWN takes Stockman’s warnings very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget and help save the United States from collapse. Below is what Stockman had to say in part II of a series of powerful interviews that will be released today.
Stockman: “I think the great ticking time bomb is interest rate swaps. The last time I checked they were in the range of $500 trillion. Who knows what’s lurking underneath the surface there?….
Stockman: “The single greatest danger is that the game the central banks are playing today will come to an abrupt and destructive end. That’s the danger because the whole system is now running off the short-run maneuvers, liquidity, and guidance that the central banks are injecting into the market every day. The danger is that one of these days the whole system will fail because it is unnatural and artificial, and when that happens it’s going to be a pretty difficult (and chaotic) time.” read more!
Just think a moment, the International Investment Bankers have been sucking our country dry for more years than anyone on earth has lived. Does that make sense folks? when will the people understand they simply cannot have a life of total leisure, we must spend time learning what is going on in our government and discuss what to do about it. By now, the entire world could have financial security if it were not for these blood suckers. Please for the sake of your children and Grand children get off your ass and learn. If I can find and learn what is wrong with the world, there is no excuse for anyone to remain ignorant. There is a way to fix the world. KILL THE BANKERS, and confiscate their wealth! Does that offend you? You don’t seem to get upset when the bankers have millions killed in their wars, while you work in their war factories though, do you? Wake the hell up America!
February 13th, 2014 by olddog
This article was written by Koos Jansen and originally published at In Gold We Trust
These financial industry giants lived through all the wealth cycles of the past 100 years and more. What used to be long term wealth investments evolved to the day-trading, making money activities, with a top in the year 2000. Then the financial industry morphed rapidly into the absurd High Frequency Trading. All wealth is now a spooky derivative of what it once was. Debt rules!
The US was the biggest gold reserve holder in the entire world, with 28,000 metric tons of gold in its vaults (60% of the world's total gold reserves). Most, if not all, of that gold disappeared from the UST, whilst the financial industry and the debt driven economy, expanded. First there was the London Gold Pool selling central bank gold reserves, then in 1974 Louise Auchincloss Boyer discovered that N. Rockefeller was selling UST Fort Knox gold. Three days later she fell out of her window (July 3, 1974).
Immediately afterwards a Fort Knox propaganda tour was organized. All gold fever stopped in 1980. Stock markets started their rise to the moon. Fifteen years later, the European System of Central Banks started their gold sales. Stock markets reached for the stars and suddenly The Queen made a propaganda tour through the London gold vaults (Dec, 2012). Now, China, Russia and other pro gold states (BRICS Development Bank) are accumulating the scare residues of available physical gold. The debt driven Western economy is in stagnation and the global debt crisis remains unsolved.
Where has all the physical bullion gold gone? Where is it concentrated after 45 years of distribution and very low paper gold prices? Hard to say, but the main flow of physical gold went certainly from West to East. Simply because the Western financial (pseudo) wealth industry was rising since 1980 and that made physical gold obsolete, in particular for the average Western man on the street.
The MSCI emerging market index is declining and never reached the Dow/Nasdaq/S&P heights. Physical gold has flown to these Eastern emerging (mostly surplus producing) markets whilst Western deficits are still rising. An upside down world,…or not. European banks have a $ 3.4 trillion exposure to the weak emerging markets who are suffering from brutal $ withdrawals. China's shadow banking is enormous and dangerous. The entire world has multiple fundamental reasons to embrace physical gold as a wealth asset, but only an extremely small minority keeps accumulating physical gold. The bulk of physical gold is now in the very strong hands of Western and Eastern giant dynasties and a relative very small group of gold wealth connected individuals. They all continue to accumulate, whatever the paper price of gold may discourage. They all anticipate the same looming catastrophe: pseudo-wealth destruction!
The Far & Middle East stores its wealth in physical gold and the West keeps going for financial industry pseudo-wealth and paper gold for making more (debt)money. This gold imbalance will increase strongly the more the gold price declines! Declining gold prices must encourage the further accumulation of risk assets. The Western giants don't care that Joe sixpack has no gold. They must feed their financial industry pseudo-wealth (buy stocks and debt paper). The Western giants, with trainloads of physical gold, don't care that the scarce left-overs of available physical gold flows cheaply to the East. When the pseudo-wealth comes to an end and the East will say physical gold is the real store of wealth, the Western giants with gold in their vaults, remain wealthy. Then the whole (political) economic story restarts from scratch.
The giant dynasties *are* the financial industry. They produce and control the bulk of the debt-driven pseudo-wealth. The FED is even providing liquidity for Mario's ECB (swaps). That's why their balance sheet is diverging. Euro-land is in fact still $-land.
China's present gold policies are building a base to take over the paper gold pricing from the dollar's financial regime. The valuation of physical gold must be totally delinked from currency and risk assets. China wants an orderly and open Rimini gold market with satisfactory gold market laws as to protect all wealth assets. A gold market where all underground speculative activities are strictly forbidden. They invite all foreigners to gradually participate in this gold market with emphasis on the free floating valuation of physical gold. This is in 100% contrast with the de facto dollar's gold pricing and gold policies. The dollar system doesn't want your wealth assets to be protected with gold. One day, the masses will embrace China's gold policies and leave the international $-reserve for what it never was (hard currency). The Western giants, indeed anticipated this all along with stealth accumulation of physical gold in their private vaults. They know the day of reckoning comes near.
The time has come to s&%t or get off the pot. If you have any investments at all in paper instruments or currency, convert them to cash and buy gold and silver NOW! You will never see your savings mature if their in dollars and you expect to live another year. Who do you know personally that has lost their money in hard commodities? Gold has thousands of years of history supporting its value retention and appreciation. Likewise silver, which is a much better investment for the common man with less than a $million to invest. If you are living pay-check to pay-check sell everything you can do without and buy ammo, guns, shovels, heritage seeds, and various other necessities for when the SHTF. Your dollars will wither away just like your youth, only much faster now. It’s time to get off your backside and learn how to live in a post dollar America. Barter will be the common mans money system before you are five years older.
December 2nd, 2013 by olddog
Watch this eleven minute video by FutureMoneyTrends.com
By Mac Slavo
Few economic analysts truly understand the underlying fundamentals of the global economy and their impact on the workings of the world. Fewer still are willing to share that knowledge withthe general public and advise others on how toshield themselves against a destabilization of the system as we have come to know it.
Bud Conrad of Casey Research is one of those who does, and in the interview below with Future Money Trends he discusses the end result of the manipulations currently being executed by our government, central banks, and financial institutions.
Despite what we’ve be told is the case, they have fixed absolutely nothing. Our national debt has grown, millions have already been impoverished and millions more will be soon. The next crisis is imminent.
The complex of potential future problems will be based on the same problems that caused the 2008 downturn… too much government debt, too much private debt and a collapse of that debt when it can’t be paid, creating a new economic crisis.
Look at the big long-term future of our economic situation… I have predicted, that in my lifetime, the US government issue of currency can’t be trusted.
It will implode and will issue a new currency to replace the dollar. That will destroy an awful lot of debts.
It will give the government a new leg, and if they can base it on something like gold it will, both, be very bullish for gold and create new confidence. If they create a new paper system like the old paper system it’ll die just like a Banana republic [like] Argentina about every ten years later.
With that… I am saying in my lifetime we’ll see the demise of the dollar and certainly before that we’ll see gold at $10,000 an ounce.
This critical information for those who want to understand what’s happening behind the scenes and how those schemes will affect the future of our economic and monetary systems:
What’s important to understand is that the manipulation is rampant, as Bud explains in the interview above, and it will soon be revealed in the form of widespread collapse of our economic and financial systems.
Consider the monetary calamity that must occur in order for gold to rise to $10,000 an ounce, and understand that whatever causes such a price spike will be an unprecedented event in human history. It won’t just be gold that’s rising, but any tangible asset essential to survival or the flow of commerce.
Acquire those assets now at a fair price – while you still can.
Any investment you presently have that does not payoff in a hard commodity is shortly going to amount to ZERO, nothing, nada! You may have millions of dollars in the bank, and their only worth a loaf of stale bread. Don’t be ignorant enough to keep your dollar denominated investments any faster than you can convert them to physical gold, silver, or most other physical commodities. If you’re in denial about the dollar crash, you’re a fool. Your financial survival, or death, is only a matter of time, but it’s coming sure as hell. I pity you fools who believe it is disloyal to dump your dollars. Dollars have been nothing but a tool to rob you of your wealth!
November 25th, 2013 by olddog
By Tyler Durden
The Fed's Catch 22 just got catchier. While most attention in the recently released FOMC minutes fell on the return of the taper as a possibility even as soon as December (making the November payrolls report the most important ever, ever, until the next one at least), a less discussed issue was the Fed's comment that it would consider lowering the Interest on Excess Reserves to zero as a means to offset the implied tightening that would result from the reduction in the monthly flow once QE entered its terminal phase (for however briefly before the plunge in the S&P led to the Un-taper). After all, the Fed's policy book goes, if IOER is raised to tighten conditions, easing it to zero, or negative, should offset "tightening financial conditions", right? Wrong. As the FT reports leading US banks have warned the Fed that should it lower IOER, they would be forced to start charging depositors.
In other words, just like Europe is already toying with the idea of NIRP (and has been for over a year, if still mostly in the rhetorical and market rumor phase), so the Fed's IOER cut would also result in a negative rate on deposits which the FT tongue-in-cheekly summarizes "depositors already have to cope with near-zero interest rates, but paying just to leave money in the bank would be highly unusual and unwelcome for companies and households."
If cutting IOER was as much of an easing move as the Fed believes, banks should be delighted – after all, according to the Fed's guidelines it would mean that the return on their investments (recall that all US banks slowly but surely became glorified, TBTF prop trading hedge funds since Glass Steagall was repealed, and why the Volcker Rule implementation is virtually guaranteed to never happen) would increase. And yet, they are not:
Executives at two of the top five US banks said a cut in the 0.25 per cent rate of interest on the $2.4tn in reserves they hold at the Fed would lead them to pass on the cost to depositors.
Banks say they may have to charge because taking in deposits is not free: they have to pay premiums of a few basis points to a US government insurance programme.
“Right now you can at least break even from a revenue perspective,” said one executive, adding that a rate cut by the Fed “would turn it into negative revenue – banks would be disincentivised to take deposits and potentially charge for them”.
Other bankers said that a move to negative rates would not only trim margins but could backfire for banks and the system as a whole, as it would incentivise treasury managers to find higher-yielding, riskier assets.
“It’s not as if we are suddenly going to start lending to [small and medium-sized enterprises],” said one. “There really isn’t the level of demand, so the danger is that banks are pushed into riskier assets to find yield.”
All of the above is BS: lending has never been a concern for the Fed because if it was, then one could scrap QE right now as an absolute faiure. Recall that as we showed recently, the total amount of loans and leases in commercial US banks has been unchanged since Lehman, with the only rise in deposits coming thanks to the fungible liquidity injected by the Fed.
TOTAL DEPOSITS 7.3 TRILLION – LOANS 7.3 TRILLION
TOTAL DEPOSITS 9.5 TRILLION – LOANS 7.3 TRILLION
TOTAL BANK RESERVES 2.2 TRILLION
Furthermore, contrary to what the hypocrite banker said that "the danger is that banks are pushed into riskier assets to find yield”, banks are already in the riskiest assets: just look at what JPM was doing with its hundreds of billions in excess deposits, which originated as Fed reserves on its books – we explained the process of how the Fed's reserves are used to push the market higher most recently in "What Shadow Banking Can Tell Us About The Fed's "Exit-Path" Dead End."
What the real danger is, is that once the Fed lowers IOER and there is a massive outflow of deposits, that banks which have used the excess deposits as initial margin and collateral on marginable securities to chase risk to record highs (as JPM's CIO explicitly and undisputedly did) that there would be an avalanche of selling once the negative rate deposit outflow tsunami hit.
Needless to say, the only offset would be if the proceeds from the deposits outflows were used to invest in stocks instead of staying inert in some mattress or, worse (if only from the Fed's point of view) purchase inert assets like gold or Bitcoin.
Which brings us back to the first sentence and the Fed's now massive Catch 22: on one hand, should the Fed taper, rates will surge and stocks will once again plunge, as they did, in early summer, just to teach the evil, non-appeasing Fed a lesson.
On the other hand, should the Fed cut IOER as a standalone move or concurrently to offset the tapering pain, banks will crush depositors by cutting rates, depositors will pull their money from banks en masse, and banks will have no choice but to close on a record levered $2.2 trillion in margined risk position.
When the banks start charging depositors, watch the Bankers start massive investments in Bitcions, which will be followed by many disgruntled depositors, resulting in a massive price increase in bitcoins. When it’s high enough the bankers will cash out leaving behind massive losses for the remaining bitcoins holders.
By Robert Wenzel
I just spent two hours today with Bitcoin expert Trace Mayer and Vitalik Buterin, head writer atBitcoinMagazine.com, who have been in San Francisco for a couple of days.
It's always a pleasure to talk to Trace, who I consider one of the foremost Bitcoin experts. He bought a ton of bitcoins at 25 cents (and lower). I asked him if he was a billionaire yet, and he just smiled.
During our meeting he outlined the fascinating supply and demand dynamics of Bitcoin. There are currently 12 million bitcoins outstanding but Trace makes the case that the actual number of bitcoins in the float is much smaller.
For example, he believes that most of the bitcoins that the FBI grabbed at the time of Ross Ulbricht's arrest were not bitcoins that belonged to Ulbricht, but were coins that belonged to active buyers and sellers on Silk Road. Thus, these active coins are now in the hands of the FBI and are out of the float.
But more intriguing, Trace tells me he believes that between 3 million to 6 million of bitcoins will never trade again, because they were purchased early on and those who purchased them have forgotten the passwords to gain access to them. Thus, the true Bitcoin float maybe only between 6 million and 9 million bitcoins.
Given the amount of hedge fund money that is now entering the Bitcoin arena (He told me that at a meeting he attended in NYC that a Goldman Sachs analyst was even in attendance studying how GS can get into the Bitcoin game.), Trace believes that Bitcoin is headed to $3,500. A trader friend of mine thinks it will head to $10,000, before it crashes to zero.
I continue to believe that Bitcoin has many of the aspects of a pump and dump scheme and agree with Peter Schiff that it is Tulipmania 2.0, but I don't think the last tulip has been sold.
It is a very risky trade, but there is probably more upside here.
In the EPJ Daily Alert, I will have more details about Bitcoin and what Trace told me about when he plans to start selling and why. It's great timing advice for Bitcoin traders. LET THE BUYER BEWARE!
September 20th, 2013 by olddog
By Dave Hodges
There is a conspiracy being perpetrated against the American people with regard to the true nature of America’s financial situation. To most people, America appears to be on her last economic legs and the future looks hopeless. On the other hand, America has never been wealthier. However, the wealth has been horded and hidden from the American people.
This article exposes why the central bankers and the corporate controlled media are attempting to make it appear as America is dead broke with no hope of recovery. The central bankers, through the government, have indeed hijacked and are hording and hiding substantial assets as they are planning to take the surface economy down as early as this fall/winter. The globalist strategy consists of convincing the people, in advance of the collapse, that there is no hope of economic recovery. Under this scenario, the perpetrators of the collapse will meet with less direct resistance, both in the collapse phase and in the recovery phase in which we will all witness the establishment of a world government and a one world economic system.
Which side is correct? Are we broke or do we have substantial hidden assets? Both sides are correct. The visible economy, which is obvious to all (e.g. the health of the fiat currency, the unemployment rate, national GDP relative to the planet’s GDP), clearly indicates that a collapse is imminent. However, there is also substantial wealth that is being horded on behalf of the banks and corporations by their governmental partners, which could make a significant difference in the health of our economy. The wealth is substantial and has successfully been hidden from most Americans
The Case for a Looming Economic Collapse
The undoing of the America currency has been a century in the making. In 1913, the most evil organization on the earth was created by an unconscionable act of Congress with the creation of the Federal Reserve. The United States national debt is more than 5000 times larger than it was when the Federal Reserve was first created, and this fact has served to turn nearly all of us into debt slaves with each of us vulnerable to the manipulation of the global elite.
The bankers who helped to create the Federal Reserve intended to permanently enslave the U.S. government to a perpetually expanding spiral of debt, and their plan has worked and their final victory is nearly at hand.
Boston University economist Laurence Kotlikoff, stated that the U.S. government is facing a “present value difference between projected future spending and revenue” of 222 trillion dollars in the years ahead. Where are we going to come up with 222 trillion dollars? The short answer is that we won’t under the existing set of economic rules that we are forced to live under.
In 2001, the United States represented 31.8 percent of the world’s economic activity. By the end of 2011, that share had dropped to 21.6% in 2011, which means that America’s portion of the world’s economy is 32% smaller than it was a decade ago and it is declining more with each passing day. With economic indicators such as these, there is no way to climb out of the economic hole we have entered courtesy of the globalist inspired free-trade agreements (i.e. NAFTA, CAFTA and now the MEFTA, AFTA and the TPP). With these kinds of economic indicators, more Americans will be competing for a smaller number of jobs which are significantly declining in pay.
Over one hundred million unemployed Americans are no longer even looking for work. The next time you go into the Department of Motor Vehicles, please realize that you are subsidizing a drivers license for about a third of the people in that building. You are also paying for their health care, food stamps and shelter. And many of these lower class, poverty-stricken “Americans” are living a higher standard of living than you are and this is by design courtesy of Chairman Obama.
It Does Not Pay to Go to Work
Wayne Emmerich found that the family breadwinner who works only one week a month at minimum wage makes 92% as much as the breadwinner grossing $60,000 a year. Emmerich’s stats demonstrate that by working only one week a month one can save a lot of money in child care expense. But topping the list is Medicaid, which is accessible to minimum wage earners and the program has very low deductibles and co-pays. In short, by working only one week a month at a minimum wage job, a minimum wage earner is able to get total medical coverage for next to nothing courtesy of you and me.
The middle class is not as lucky as the $60,000 breadwinner pays out approximately $12,000 per year in health insurance costs with an addition $4,500 in co-pays. And if anyone in the part-time minimum wage earning family is disabled, SSI pays out an additional $8,088 per year. When one begins to calculate the expenses incurred by a typical breadwinner making $60,000 per year, compared to the part time minimum wage worker, coupled with minimum wage earners tax supported federal bailouts for these freeloaders, the poor have more discretionary income than those who pay the taxes that run the country. And if the part time minimum wage worker is willing to cheat and participate in the underground economy, they will have significantly more discretionary income than their hard-working $60,000 per year counterpart who actually works for a living. In short, if you are a full-time employee making above minimum wage, you are paying for your own economic demise. The numbers here suggest that we’d be better off staying home and living off of the labors of what’s left of the middle class and of course this would help to collapse the economy.
Unbearable Taxes Are Leading to Record Expatriation Rates
Overwhelmingly, the number one reason that Americans are fleeing the country is because of high taxes. The income tax rate rose this year to 39.6% from 35% for individuals earning more than $400,000 a year and married couples earning more than $450,000. As of this year, 77% of Americans will pay higher federal tax rates because the cuts in Social Security payroll taxes expired when Congress passed its tax package on New Year’s Day. The Tax Policy Center estimates that those who earn more than $1 million would pay an average of $170,341 more in taxes. The tax burden is adding crushing weight to a beleaguered upper and middle class America.
Hiding and Hording Massive Assets That Could Rescue the Country’s Economy
Americans are lamenting the fact that our budget deficit is now over $17 trillion dollars. Our national debt and deficit is a drop in the bucket compared to the assets that our government controls. However, far beneath the ground, the federal government owns the rights to mineral and energy leases, from which they receive royalties, rents, and bonus payment, states the Institute for Energy Research, an industry group. According to their estimates, government states that the assets are worth $128 trillion. That’s almost eight times the national debt. This is a hard asset which could be collateralized and matched against the deficit.
“These resources could be leased to third parties and could subsequently earn the state and national government huge royalties, rents, and bonus payments that it is estimated could total almost $150 billion over 10 years, just for the oil and gas leases alone.” Then why isn’t this being done? Simple, ask yourself who would lose money if these idle assets were to brought to fruition? The oil companies would lose money, that’s who! The same oil companies that block oil drilling on the North Shore of Alaska. The same oil companies who preserve the existing relationship with Middle Eastern nations, which someday, will pull us into a devastating world war with Syria and Iran.
Further, the unleashing of these assets would reduce the costs of energy for consumers and businesses. Now, the owners of the utilities, the same people who are the owners of the oil companies, could not permit that. The utilities have invested billions toward the installation of smart meters and a new infrastructure smart grid, in which they control all energy pricing.
Another factor that comes into play on why these assets are not being unleashed is because plentiful, reliable and cheap energy supplies would greatly accelerate economic growth and jump start the economy out of the doldrums. But when the globalists’ goal is the creation of a one world economic system, based upon keeping nations in debt, controlled by a tyrannical one world government, the old government and economy must be brought down and this economic boon to the economy cannot be allowed to transpire. Therefore, the government acts as a procurement agent for the globalists, who will eventually unleash these assets to themselves, after the collapse of the dollar.
CAFR’S the Source of Untold Wealth
For over a decade, accountant Walter Burien, has been trying to raise public consciousness over what he says is a massive conspiracy, totaling trillions of dollars. The conspiracy, Burien says, is one in which governments at all levels have hidden away funds in a practice commonly called CAFR’s. Burien’s numbers may be questioned, but there can be no doubt that significant hidden funds clearly exist. The existence of CAFR’s are evidenced by the existence of the Comprehensive Annual Financial Reports (CAFRs). CAFR’s are a required aspect of every government agency accounting practices. Therefore, the existence of this underground slush fund is a matter of public record.
The subject of CAFR’s first came to light when Colonel Gerald Klatt alerted Burien to their existence. Coincidentally, Klatt died under very mysterious circumstances, in 2004, which lent credence to the claim that there was a conspiracy to cover up the scope and true nature of CAFR’s. Just what is a CAFR and how does it explain how the American are being lied to about how much money truly exists within the control of the government?
To help you understand the nature and process of CAFR’s, let’s pretend that you were to have a checking account with $100 and a savings account with $1,000 in two different banks. Let’s further imagine that you only reported to the IRS, that you only had $100 dollars as your net worth because you don’t want to use your savings account to pay bills (i.e. taxpayer obligations). Subsequently, you’d be audited and put in a federal prison for failure to report the larger amount. However, the government grants itself permission to play by its own rules and to make up the CAFR rules as they go along. The government, as described in the above example, simply designates that it has two accounts (i.e. the $100 account and the $1,000 (CAFR) savings account). However, the larger CAFR account is designated as “non-governmental” or “non-taxpayer” income and this allows the government to hide all of this wealth from the people as reported in the government’s Budget Report. In this economic scenario, only the smaller account is the one that gets declared. And the reason that governments continue to engage in this shady practice, is that they want to be able to justify the taking of a greater portion of your income through increased taxation. I call this highway robbery. As an aside, have you noticed that many counties are building monumental justice centers which defy description of where the funds came from given the present state of economic affairs. These centers are being built with CAFR’s which are monetized in a variety of ways.
The subject of CAFR’s is something that has come into my life with an explosion. In Maricopa County (greater Phoenix area), former county attorney, Andrew Thomas, was disbarred eighteen months ago. A three-member panel found that former County Attorney Andrew Thomas violated the professional rules of conduct for lawyers in bringing criminal charges against two county officials and a judge in December 2009. What gets lost in the media reporting of Thomas sudden departure from office and his disbarment is why Thomas was prosecuting two county officials, County Supervisors Dan Stapely and Mary Rose Wilcox as well as Superior Court Judge Gary Donahoe. Thomas initiated the investigation with allegations of financial wrong doing on the part of the three individuals. The second phase of his investigation was to attack the use of off the books funds (i.e. CAFR’s).Thomas was gone from office before phase two of his legal action could be commenced and Arpaio was neutralized.
A few years ago, Maricopa County just completed the building of an expensive justice center worth more than 500 million dollars. Where did the money come from as it has repeatedly been reported in the Phoenix media that the County is broke? Who benefitted? Thomas found evidence of money being kept off of the books and was attempting to expose it and the forces of the establishment had him expelled from office and disbarred within months of the first accusations. Simultaneously, Sheriff Joe Arpaio was complicit in the ill-fated Thomas investigation by carrying out the investigation and participating in the arrests of the three officials. Shortly thereafter, Arpaio was the source of a massive Eric Holder led justice probe into his department’s alleged racial profiling of illegal immigrants in Maricopa County. Arpaio brilliantly retaliated with an investigation into the authenticity of Obama’s long form birth certificate. Obama was declared, by Arpaio, to be ineligible to appear on Arizona’s ballot for President in 2012. Then the controversy went dark and the back and forth between the Feds and Arpaio disappeared from the front page of the newspapers. Obama eventually appeared on the ballot and Arpaio received a mere slap on the wrist from the Department of Justice. Can anyone say “a deal was struck?” Apraio survived because he had leverage against Obama and Andrew Thomas did not and subsequently, Thomas’ license to practice law was revoked by a three judge panel, which operated in the spirit of the worst of any kind of Kangaroo court.
If the Thomas case had been fully exposed to the media, the subject of CAFR’s would have been irrevocably exposed. The obfuscation of public funds issue appeared to be dead. However, I had an inside source come forward and his name is Doug Rhoads. Doug is a former Maricopa County prosecutor. He approached me in early June of 2013 after reading a multipart series that I had published on my website regarding the privatization of for profit prisons and the fact that many states were promising private corporations a 90% prison occupancy rate, thus driving up zealousness of criminal prosecutions aimed at keeping the prisons full and profits high.
Doug Rhoads informed me that everyone of these criminal cases were being monetized as a traded commodity on the market and that the earned money went off of the books. Doug subsequently appeared on my talk show for two hours and exposed the fact that this was indeed taking place and we also discussed the Andrew Thomas affair. Since the airing of this interview with Rhoads, I have been personally threatened on two occasions that if I continued to report on prison privatization and the Rhoads revelations of hidden public assets, there would be “grave consequences.” Also, since the Rhoads interview, I have been contacted by several people, each with a different angle on this situation. However, all of them are afraid for their careers and their lives if their whistle-blowing were to ever be exposed.
The issue and existence of CAFR’s is being zealously guarded. The release of CAFR’s, alone, could erase our national debt and return financial affluence to America. For example, California Governor Brown, claims that the California’s state budget deficit of $16 billion requires austerity actions. However the state’s CAFR funds revealed $600 billion in undeclared assets. When all the CAFR surplus accounts are totaled, Californians have been overtaxed by $8 trillion dollars in a sampled study. This is being done at every level of government, two sets of books and two sets of figures. You do not have to be living in California and Arizona to be the victim of this deception, it is in every state. This makes the national debt appear to be meaningless.
And whatever happened to Col. Klatt, the man who first revealed the existence of the CAFR’s? He suffered a worse fate than Andrew Thomas, he was likely murdered as Klatt served for a long time as an Air Force auditor and federal accountant, and it’s likely that he got too close to some military CAFR’s being used for “off the books” operations and he died under very mysterious circumstances. Google “Walter Burien” and be prepared to get really upset about how much money is being withheld by government in this unholy accounting practice.
What Does It All Mean?
Through CAFR’s, the government is clearly hording money. Where does the money go? Nobody can be certain except that it makes the lion’s share of money collected eligible to be used as off the books spending.
This is where the plot thickens and things get very interesting. If the economy is collapsed due to the well-publicized debt listed in the first part of this article, it is not known what would happen to the CAFR’s, the underground mineral resources, etc. Since these assets are technically off the books and under the control of local governments and many of their corporate NGO’s, they would presumably be unaffected in an economic collapse scenario. And wouldn’t that be the goal of banking interests who would want to collapse the economy in that they would want to procure as many hard assets as possible before the collapse. Since government at all levels has repeatedly proven itself to be agents of the megabanks and the corporations, these institutions would survive an economic collapse with a great deal of hard assets.
I have concluded that the powers that be are hording hard assets as a means to maintain power following the economic reorganization which would follow a collapse. Further, this theory is further bolstered by the fact that Federal Reserve continues to buy $40 billion of mortgage backed securities every month and MERS is continuing their theft of home mortgages at record rates. This scenario looks like the globalists are following a massive wealth transfer scenario and the pace of this wealth transfer is accelerating. What is the rush? Could it be that what I wrote about two weeks ago is indeed coming into play?
The GRID EX II drill in which the power grid is being “taken down in a simulation,” is something that cannot be easily dismissed as the next false flag event. However, this is eerily similar to what happened in 9/11 and the 7/7 bombings as well as the Boston Marathon bombing in which a drill culminated in a false flag attack. If the grid is taken down, and as I have stated before, a false flag within a false flag can be executed and the banks can be collapsed and the country will barely notice. Who would notice the missing digits in their bank accounts when the grid is down and the people are starving by the third day following the blackout? Meanwhile, government as well as their banking and corporate partners would hold most of the hard assets in the country following an economic collapse and would stand to be in a position of extreme power when the smoke eventually clears.
In this scenario, the largest remaining asset that the banks would not totally control would be the privately owned homes and businesses. But after a collapse, how would people pay their mortgage? The short answer is that they could not. And who would the deeds revert to? They would revert to the banks.
Although I think this scenario is likely, this is only a theory regarding the tie in with GRID EX II, hidden wealth and collusion to collapse the economy in order to transfer wealth and to consolidate holdings. However, what is not a theory is the fact that our hidden assets outnumbers the sum total of our debt as a nation and the debt and the deficit could be paid off overnight should the people wake up and force the government to release the true wealth of the country.
September 20th, 2013 by olddog
By Ron Holland
This may directly impact how you invest or rebalance your portfolio, view or engage in politics, and how you will attempt to secure your wealth in the future.
I believe this will dramatically impact the dollar, gold and bonds. In addition, it may well create the biggest bull market in decades for several equity sectors while the rest of the market stagnates and withers away into oblivion.
If you have followed The Daily Bell, you know our past track record on foreign affairs, finance and geopolitical and economic trends has been outstanding. Topics ranging from the usual Wall Street and Federal Reserve antics to oil, pipelines, the Middle East and the EU have been covered. In addition, many current events and foreign policy actions have been reviewed and explained from The Daily Bell's free-market perspective.
You also know that The Daily Bell abruptly ceased publication without notice or warning on July 16, 2013 (see Anthony Wile's "Hasta La Vista").
After analyzing the information coming in, our chief editor, Anthony Wile, quickly organized a conference that's coming up right away and I think it's a terrific opportunity to get an early scoop on these changes and how we can each prosper because of them. For instance:
You'll learn the specifics of why the Daily Bell, one of the leading free-market political and economic news sites in the world, suddenly shut down, uncertain as to how to address this new information.
– You'll learn how the proprietary trend and sector analysis model utilized by The Daily Bell to follow elite promotions in economics, politics and finance suddenly turned on a dime indicating the possibility of a Major Elite Promotion happening soon! If the model is right, this will likely turn the US markets upside down and, depending on your portfolio, make you very wealthy or very poor during the next four years.
But why did we quickly shut down The Daily Bell without any warning?
First, we didn't want to rush to judgment and act too soon or be too late for readers to be protected and benefit.
Second, we couldn't just sit on the information and continue to provide analysis without coming clean about what we had discovered.
Third, there are certain inherent risks in telling the truth to the public when powerful forces want to keep it under wraps. Could we, and our families, afford to take the risk?
So we shut the site down until we could check out the story and determine how readers could benefit and also take cover from what could happen very soon.
We will tell all at the last minute High Alert Investment Conference to be held on October 16-19th in the dramatic mountain and ocean-side scenery of Cape Breton, Nova Scotia.
Note, there is ZERO fee to attend the conference other than meeting the accredited investor rules but understand we also do our due diligence on each and every person, speaker or member of the press that wants to attend for the conference.
No one who just shows up at the door without pre-registering will be admitted.
The venue is private and secure and NO video or audio will be allowed. The entire resort has been reserved to be sure we are the only ones there and ensure confidentiality.
There will be a few press passes available to friendly financial and responsible free-market and alternative media.
Time Is Short!
Click here to find out more and to register, or call us for more information.
* Friendly media: If you are interested in covering this event, please post this announcement on your site and call for details at the number listed in the link above.
July 31st, 2013 by olddog
By Matt Winkeljohn
What was once a great country has turned in to a maggot infested, unrecognizable carcass of its former self.
There was once a number of people who seceded and revolted against a tyrannical British government. Those same people had a great vision of what would become The United States of America.
Those great founders made it explicitly clear to all people and future governments as to how America is supposed to be. They even drafted documents to explain that the government is intended to be small and that the people have basic human rights that shall not be infringed upon.
Unfortunately, it has taken only a little less than 250 years to completely destroy that vision and the country.
“A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army.” We must not let our rulers load us with perpetual debt.”
The Federal Reserve, which is not federal at all, is a privately owned banking cartel that has been given power from the United States federal government, to print our paper money and divvy it out, with no oversight, as they deem necessary.
That is not the only thing the Federal Reserve does…They also create debt.
The debt is created by printing money without any backing by gold or silver and then placing debt on to each dollar printed. This debt, that is impossible to be payed back, is then passed on to the people of America. Through the use of banks, that debt is then held over Americans heads in order to force them to pay unlawful taxes and to work for “the system.”
The Federal Reserve is one of the largest contributing factors to most economic declines in the United States.
One would think, with a national debt that is nearing $17 trillion, people would start to wake up. I am positive that our founders wouldn’t have put up with this sort of madness. They did, however, try to warn us.
“They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.”
In 2010, there were 40,627 new laws put on the books across the United States. In 2012, 40,000. These are all laws telling We The People what we can and can not do. There are over 30,000 pages of just federal laws currently on the books. Most of which are victimless crimes put in to law for the sole purpose of revenue and control.
Who are hired to enforce these laws?
There are a number of agencies that have been established to enforce these laws, most of which do not have the interest of the people in mind, but the interest of the government and corporations.
Of these agencies, the city police, Sheriffs department and State Highway Patrol are the most commonly seen. The city police and State Patrol have essentially become no more than common street thugs. Their job is nothing more than revenue enforcement through the use of bully tactics and fear. While the Sheriffs departments are not without flaws, they are the only “police” in the entire country that is actually voted in by the people.
There has also been a recent trend of militarizing police forces. Parents can no longer teach their children that if they are in trouble, to go find the nearest person in uniform. If a screaming child is charging at today’s police, they are more likely to get shot than they are to get help. The police of today have become the judge, jury and many times, the executioner. People are 8 times more likely to get killed by a cop than they are by any terrorist.
The Transportation Security Administration (TSA) and the Department of Homeland Security (DHS) are two more agencies that have been created to keep Americans in check.
The duty of these two agencies are not so much about revenue as they are about keeping Americans compliant. The Obama and Bush administrations have used these agencies as their own personal gestapo against Americans, all in the name of fake terror threats. We are told that there are evil terrorists that could strike at any time, so the majority of Americans are now willing to give up most of their basic human rights for the illusion of protection.
The reality of these two agencies is that they are here to keep the people afraid, compliant and unwilling to stand up against the government. It is their sole purpose to detain and execute if necessary, any American that is not willing to obey the fake authority of them or the government.
“The two enemies of the people are criminals and government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized.”
~ Thomas Jefferson
“The policy of the American government is to leave their citizens free, neither restraining nor aiding them in their pursuits”
~ Thomas Jefferson
Who is at the top of the heap when it comes to the destruction of this once great country? Well, that has a dual answer.
First.. government. This over reaching and illegal federal government that we have are the ones who put all of the tyranny in motion. It was/is a greedy government that protects the Federal Reserve, it is the federal government that illegally justifies unwarranted NSA spying on all Americans and it is the federal government that has left you for dead.
It is the federal government (Democrats and Republicans alike) that allow the Patriot act, which unlike the name, isn’t very patriotic. The Patriot act is designed to allow the federal government to keep tabs on every American alive today. It is the basis for the National Security Agency’s (NSA) spying, wiretapping and listening to every phone call, text and email. This has destroyed the entire 4th amendment to the constitution.
“The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.”
It is the federal government that has been pushing to completely disarm the American people in order to be able to better control us. Much of this has been done through laws and legislation that We The People never had a say in. This goes directly against the 2nd amendment to the constitution.
A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.
It is the federal government that not only allowed, but demanded that We The People not be allowed to protest. HR 347 essentially allows the government to take away your 1st amendment right, anywhere they choose that is shouldn’t apply. In fact, this and every other right that we have is not up for negotiation. It is not the right or the duty of the federal government to put ANY infringements on ANY of our rights, or to legislate when and where they apply.
“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”
Every part of this amendment has been destroyed!
The last three examples that I have given also goes directly against the 5th and 10th amendments.
“No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.”
“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
I did say that this was a dual answer, didn’t I? Here is part two of the answer.
Who else is at the top of the heap to blame for the destruction of this once great country?
If you want to know who really let all of this happen, look no further than the nearest mirror. The founders of this country were very specific in saying that it is the people’s duty to keep government in check.
“What country can preserve its liberties if its rulers are not warned from time to time that their people preserve the spirit of resistance?”
~ Thomas Jefferson
You have become weak and compliant to tyranny! You have let down the founders who once had a great vision for this country!
The Declaration of Independence states – “That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”
You have not done that! You have set idly by while government divides us and destroys something that was once beautiful, majestic, rich and great! It is your job to make sure that government doesn’t get too big, that America didn’t create their own enemies and that the constitution would always be followed..but you failed!
“The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government.”
~ Thomas Jefferson
“When the people fear their government, there is tyranny; when the government fears the people, there is liberty.”
~ Thomas Jefferson
Now is the time to wake up! Now is the time to protect ourselves against the government and all of its agencies!
NOW IS THE TIME TO MAKE THEM AFRAID OF US!!!!
July 11th, 2013 by olddog
More and more people and organizations are becoming adept at identifying the evil injustices which have invaded every facet of our lives. Of all the identified enemies of humanity, there is one enemy which stands out among all others.
Pogo is correct. It is we the people who have become adept at mastering the craft of perpetuating our own enslavement. We provide the labor and the capital which enslaves us. This article illustrates one small example of how we are being enslaved and more importantly, what we can do about it.
Whether it is banking, healthcare or even public education, the globalists have virtual control over the entire system. They also control the dialogue through their domination of the mainstream media and they do so to their advantage and to our extreme detriment.
This article will take a very brief look at banking, and then propose solutions based upon common sense and from the field of psychology which could be used to mitigate the effectiveness of the globalists on a broad front in this arena.
Stop Feeding the Beast
The globalists have a definitive infrastructure and when we decide enough is enough and withdraw from this system, their house of cards will begin to crumble and could eventually collapse. The moment humanity realizes that we are contributing to our own enslavement and demise by our complicit participation in the globalists' rigged game, we can choose to alter our course by making different decisions. Our continuing decision to fully participate in the banking system is mind boggling because this system is sowing the seeds of humanity’s destruction.
First, it incomprehensible that people do not take the time to investigate with whom they are entrusting their money. The money changers represent the group most despised by Jesus; and if that is not enough, let us consider the fact these banksters contribute to the starting of every war in order to loan out the money for the arms build-up. And then the banksters loan out the money to clean up the mess and we repeat this scenario over and over and over again. To survive, the system needs your children’s involuntary servitude in the military. In other words, when you deposit money in the bank, you are participating in the future death of many of today’s children as they grow into young adulthood. Why would any reasonable person entrust their money to such a system of evil?
Second, the banksters take your money into their hallowed institutions and then multiply it by a factor of nine (i.e. fractional reserve banking) and then loan out this imaginary money at your expense by the inflationary practice that this culminates in. Then the banksters have the intestinal fortitude to loan us back the money at 15, 20, 25% interest on money created out of thin air. When you put money into the bank, you are committing financial suicide.
Third, when the banksters print their money out of thin air and then charge the government and the people for the right to use “their” money, we in effect are paying for the right to be their debt slaves. And all of this occurs despite the fact that the Constitution says that Congress shall coin money. Of course, a dumbed down populace cannot appreciate or be cognizant of the principles of the Constitution. Why? Because the globalists also control education which is another story for another time.
Fourth, the international banksters are hands down the most corrupt and evil influence on the planet. They perpetrated the Arab Spring in which many have died, and there is no end in sight.
The banksters, through the Bilderberg control over NATO, overthrew Libya because that country would not join the Bank of International Settlement’s central banking system and enslave their people into generations of crushing debt. Immediately prior to the time of Libya’s occupation, the Libyan people paid 14 cents for a gallon of gas, provided free education to their citizens as well as free health care. Young Libyan couples getting married were given a home. The banksters could not have that kind of wealth wasted on common people, because unless someone is a debt slave, they cannot be readily controlled.
Today, every one of the five megabanks are stealing the homes of their customers through the MERS fraud. The banks also launder money for the drug cartels (e.g. HSBC Bank and Wachovia Wells Fargo). They profit from child sex rings and they are using your bank deposits as a force multiplier to accomplish these evil deeds. Whether we want to face these facts or not, everyone who keeps their money in these institutions is an accomplice to these crimes.
We need to collectively come to realize that we the people are playing in a rigged game and we desperately need to cash out and find a new game to play. And it is just not banking that we need to be worrying about. The globalists control the very foundations of civilization. However, at the heart of this control is banking and that is where our attack needs to begin. Yet, I know that it seems impossible for most of us to not play in the globalist game of domination because so much of our lives are wrapped up in these evil institutions. So what is a victim to do?
The answer to the above question may have its roots in the field of psychology. Through institutions such Royal Institute of International Affairs and the Tavistock Institute, which controls over 30 research and polling sites in America. Tavistock is well known for the science of creating phony polls to influence and alter the public’s perception of an event based upon group think principles. More importantly, Tavistock has been at the forefront of psychological research on the manipulation of the masses. The psychological research of Tavistock helps us to understand how so few on this planet can so completely control so many. The effectiveness of their developed psychological controls are so complete, that the masses have largely been reduced to a herd of mindless sheep in which the many are conditioned to embrace and rejoice in their slavery.
What is good for the goose is also good for the gander. We, as a people, have the same opportunity to use the same psychological principles against the banksters. There are literally dozens of psychological strategies which we as the common people could employ. In the remaining part of the article, two strategies will be discussed and if they were employed by the masses, we would see an immediate impact on the control level of the globalists.
The Hawthorne Effect
Since the discovery of the Hawthorne Effect by the Harvard School of Business, it was discovered that research subjects change their behavior when they realize that they are being watched. Today, this is a well-known principle in the arena of effective research in which researchers are trained to minimize their level of intrusiveness in their naturalistic field research.
Based upon this principle, and if I were a globalist, I would welcome the public revelations of the NSA spy scandal for all the apparent reasons listed above. How many of us will be prevented from speaking out as things continue to decline for fear of future retribution? Fortunately, we live in a universe of duality and, therefore, this same principle can be also be used against the globalists as well.
What happens when you shine a light on rats? Everybody knows that the rats run for cover. This knowledge should be an empowering motivator for the alternative media. This knowledge should also encourage all of us to become a citizen journalist. Being a citizen journalist whistleblower needs to become our national pastime in which we report every act of wrongdoing on the part of every corporation and every government official, whether their rank is high or low.
To be effective and to create our own cultural norms, the alternative media needs to exalt people like Ed Snowden and immortalize the memories of Michael Hastings and Andrew Breitbart. There needs to become so many of us, that the globalists need to feel that there is nowhere to hide.
An Army of Citizen Journalists
America, if you want to preserve what little freedom you have left, you have a duty to become a participant in the resistance against global tyranny. Our collective efforts could someday be sufficient in numbers to shift the consciousness of this planet and create counter-critical mass in which a tsunami of opposition beliefs to the prevailing status quo sweeps across the planet and removes much of the control the banksters enjoy today.
In a person’s role as a citizen journalist, the coverage can seem minuscule on the surface. Perhaps the event one can cover may be as mundane as children cited for drawing with chalk on the sidewalk or a 10-year-old girl ticketed for operating a lemonade stand without a license. Together, we can create a debris field which can impede and eventually turn back the progress of the globalists. No, I do not think we can eliminate the influence the money changers, but we can invoke change by utilizing the principle of the Hawthorne Effect. And if there was one thing that I could have personal influence over, I would encourage all of you to educate your neighbors and friends about fractional reserve banking. I know of nobody, who understands this principle, who agrees with it. Fractional reserve banking could be the beginning point for any discussion about the unwarranted globalist control over humanity (i.e. “Do you know what happens to your money when you deposit it in the bank?”).
What To Do About the Banks?
You work at your job, your employer sends your check to your bank and you make automated payments for your bills from your bank account and you do not have to lift a finger to make all of this happen once your sign the banks paperwork. If you are like me, you can go months without having to withdraw any cash from the bank because the bank, on our behalf, controls most of our financial obligations if we so permit. Our lives are so intertwined in these corrupt financial institutions, it is not practical to totally extricate ourselves from the banks in one decisive action. However, we can systematically starve the banks to death through the gradual withdrawal of our support and our money.
Is it possible for you to withdraw enough of your money to equal over 90% of your total holdings in the bank? On the surface, this would appear to be an impractical solution. The concept of fractional reserve banking has built in a very effective firewall to real globalist profits through the multiplication of your deposits by 900%. For even if we were to collectively withdraw 80% of our money from the banks, the globalists would still double their profits based upon this concept. If Ron Paul in his former role on the House Banking Committee could not even audit the Federal Reserve, it is safe to say that, for now, the tinkering of this system is nearly impossible. However, this is where the idea of financial guerrilla warfare comes into play.
Attacking the Banksters On Our Terms
The most important decision we make is whether we believe we live in a friendly or hostile universe. — Albert Einstein
Is your glass half empty or half full? We make the choice to become optimistic or pessimistic. Voluminous amounts of psychological research is replete with the established fact that optimists live longer, make more money, have happier marriages and enjoy many more social advantages than do pessimists. Our happiness, our success and our well-being largely boils down to our own choices. Freedom is the space between the prison bars of life. When we realize that even in the most dire of situations, we have some measure of freedom, we can initiate change. And when many people realize this fact, we can initiate change on a global scale.
If we come to view the evil monolithic organizations such as the IRS and the Federal Reserve as insurmountable foes with no weaknesses to exploit on our end, then our pessimism will rule the day and we will capitulate to this criminal system just the like a herd of sheep.
When you change the way that you look at things, the things you look at change.
The alternative media is excellent at identifying and exposing problems. However, if all we do talk, then our revelations begin to become irrelevant. When all we do is to call attention to the negativity, then we invite more negativity into our paradigm. Our glass will always be half empty. And now it is time to discuss the second psychological principle that we can employ against the globalists.
Some psychologists call the following attractor energy in that we invite into our lives the things that we pay the most attention to. And what we invite into our lives attracts more of what it is that we are paying attention to. If we only focus on the problems, then we will invite more problems. Therefore, it is incumbent upon all of us to focus mostly on changes that are needed. Thus, significant action must follow our observations and words. You will eventually become what you think
As a man thinks in his heart, so is he. — Proverbs 3:27
First, we must visualize being out of the corporate dominated system of the globalists. Ask yourself, what would that look like and then work to make it happen.
With regard to beginning to withdraw from the central banking system, people should not use direct deposit from their employer to the bank. Keep a minimal amount of cash in the bank so that you may cash your checks. Pay your mortgages with a money order. Do the same for your car loans. Better yet, do not make purchases that you cannot afford to pay cash for. Debt makes you a slave to the banksters.
Pay cash for as much as you can and limit the amount of cash that you let go into the bank. Remember, for every dollar that goes into the bank, the globalists multiply it times nine, and much of that money goes toward programs designed to maximize their control over us.
Shop at your local merchants. Avoid corporate chain stores, owned by the megabanks, like the plague. Regularly, hold and/or attend garage sales, swap meets and farmers' markets to find what you need. Learn to grow your own food and subsist on that food supply as much as possible. You get the idea, get out of their money system as much as possible and we will significantly weaken the money changers system. We are not going to be able to invade Wall Street, so we have attack it from the inside. This is financial guerrilla warfare.
There is also a side benefit to these withdrawal strategies. When the collapse of the dollar finally arrives, you will be better prepared to survive. It is time to roll up our sleeves and work towards getting out of this corrupt system.
Do not conform to the pattern of this world… — Romans 12:2
Dave is an award winning psychology, statistics and research professor, a college basketball coach, a mental health counselor, a political activist and writer who has published dozens of editorials and articles in several publications such as Freedoms Phoenix, News With Views and The Arizona Republic.
The Common Sense Show features a wide variety of important topics that range from the loss of constitutional liberties, to the subsequent implementation of a police state under world governance, to exploring the limits of human potential. The primary purpose of The Common Sense Show is to provide Americans with the tools necessary to reclaim both our individual and national sovereignty.
June 28th, 2013 by olddog
How can anyone not see that the U.S. economy is collapsing all around us? It just astounds me when people try to tell me that "everything is just fine" and that "things are getting better" in America. Are there people out there that are really that blind? If you want to see the economic collapse, just open up your eyes and look around you. By almost every economic and financial measure, the U.S. economy has been steadily declining for many years. But most Americans are so tied into "the matrix" that they can only understand the cheerful propaganda that is endlessly being spoon-fed to them by the mainstream media. As I have said so many times, the economic collapse is not a single event. The economic collapse has been happening, it is is happening right now, and it will continue to happen. Yes, there will be times when our decline will be punctuated by moments of great crisis, but that will be the exception rather than the rule. A lot of people that write about "the economic collapse" hype it up as if it will be some huge "event" that will happen very rapidly and then once it is all over we will rebuild. Unfortunately, that is not how the real world works. We are living in the greatest debt bubble in the history of the world, and once it completely bursts there will be no going back to how things were before. Right now, we are living in a "credit card economy". As long as we can keep borrowing more money, most people think that things are just fine. But anyone that has lived on credit cards knows that eventually there comes a point when the game is over, and we are rapidly approaching that point as a nation.
Have you ever been there? Have you ever desperately hoped that you could just get one more credit card or one more loan so that you could keep things going?
At first, living on credit can be a lot of fun. You can live a much higher standard of living than you otherwise would be able to.
But inevitably a day of reckoning comes.
If the federal government and the American people were forced at this moment to live within their means, the U.S. economy would immediately plunge into a depression.
That is a 100% rock solid guarantee.
But our politicians and the mainstream media continue to perpetuate the fiction that we can live in this credit card economic fantasy land indefinitely.
And most Americans could not care less about the future. As long as "things are good" today, they don't really think much about what the future will hold.
As a result of our very foolish short-term thinking, we have now run up a national debt of 16.4 trillion dollars. It is the largest debt in the history of the world, and it has gottenmore than 23 times larger since Jimmy Carter first entered the White House.
The chart that you see below is a recipe for national financial suicide…
Of course things have accelerated over the past four years. Since Barack Obama entered the White House, the U.S. government has run a budget deficit of well over a trillion dollarsevery single year, and we have stolen more than 100 million dollars from our children and our grandchildren every single hour of every single day.
It is the biggest theft of all time. What we are doing to our children and our grandchildren is beyond criminal.
And now our debt is at a level that most economists would consider terminal. When Barack Obama first entered the White House, the U.S. debt to GDP ratio was under 70 percent. Today, it is up to 103 percent.
We are officially in "the danger zone".
If things really were "getting better" in America, we would not need to borrow so much money.
Our politicians are stealing from the future in order to make the present look better. During Obama's first term, the federal government accumulated more debt than it did under the first 42 U.S presidents combined.
That is utter insanity!
If you started paying off just the new debtthat the U.S. has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.
So what is the solution?
Get ready to laugh.
The most prominent economic journalist in the entire country, Paul Krugman of the New York Times, recently suggested the following in an article that he wrote entitled "Kick That Can"…
Realistically, we’re not going to resolve our long-run fiscal issues any time soon, which is O.K. — not ideal, but nothing terrible will happen if we don’t fix everything this year. Meanwhile, we face the imminent threat of severe economic damage from short-term spending cuts.
So we should avoid that damage by kicking the can down the road. It’s the responsible thing to do.
You mean that we might actually do damage to the debt-fueled economic fantasy world that we are living in if we stopped stealing so much money from future generations?
Oh the humanity!
It is horrifying to think that all that one of the "top economic minds" in America can come up with is to "kick the can" down the road some more.
Unfortunately, neither Paul Krugman nor most of the American people understand that our financial system is actually designed to create government debt.
The bankers that helped create the Federal Reserve intended to permanently enslave the U.S. government to a perpetually expanding spiral of debt, and their plans worked.
At this point, the U.S. national debt is more than 5000 times larger than it was when theFederal Reserve was first created.
So why don't the American people understand what the Federal Reserve system is doing to us?
It is because most of them are still plugged into the matrix. A Zero Hedge article that I came across today put it beautifully…
US society in a nutshell: Chris Dorner has been around for a week and has 222 million results on Google; the Federal Reserve has been around for one hundred years and has 187 million results.
If nothing is done about our exploding debt, it is only a matter of time before we reach financial oblivion.
According to Boston University economist Laurence Kotlikoff, the U.S. government is facing a "present value difference between projected future spending and revenue" of222 trillion dollars in the years ahead.
So how in the world are we going to come up with an extra 222 trillion dollars?
But it is not just the U.S. government that is drowning in debt.
Just check out this chart which shows the astounding growth of state and local government debt in recent years…
All over the United States there are state and local governments that are on the verge of bankruptcy. Just check out what is going on inDetroit. The only way that most of our state and local governments can keep going at this point is to also "kick the can" down the road some more.
And of course most of the rest of us are drowning in debt as well.
40 years ago, the total amount of debt in the U.S. economic system (government + business + consumer) was less than 2 trillion dollars.
Today, the total amount of debt in the U.S. economic system has grown to more than 55 trillion dollars.
Can anyone say bubble?
The good news is that U.S. GDP is now more than 12 times larger than it was 40 years ago.
The bad news is that the total amount of debt in our financial system is now more than 30 times larger than it was 40 years ago…
At the same time that we are going into so much debt, our ability to produce wealth continues to decline.
According to the World Bank, U.S. GDP accounted for 31.8 percent of all global economic activity in 2001. That number dropped to 21.6 percent in 2011. That is not just a decline – that is a nightmarish freefall. Just check out the chart in this article.
We are becoming less competitive as a nation with each passing year. In fact, the U.S. has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.
Most Americans don't understand this, but the United States buys far more from the rest of the world than they buy from us each year. In 2012, we had a trade deficit of more than 500 billion dollars with the rest of the world.
That means that more than 500 billion dollars that could have gone to U.S. workers and U.S. businesses went out of the country instead.
So how does our country survive if hundreds of billions of dollars more is flowing out of the country than is flowing into it?
Well, to make up the shortfall we go to the countries that we sent our money to and we beg them to lend it back to us. If that doesn't work, we just print and borrow even more money.
Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.
That is 8 trillion dollars that could have saved U.S. businesses, paid the salaries of U.S. workers and that would have helped fund government.
But instead, our foolish policies have greatly enriched China and the oil barons of the Middle East.
Sadly, politicians from both political partiescontinue to boldly support the one world economic agenda of the global elite.
Just consider how destructive many of these "free trade" deals have been to our economy…
When NAFTA was pushed through Congress in 1993, the United States had a trade surpluswith Mexico of 1.6 billion dollars.
By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.
Back in 1985, our trade deficit with China was approximately 6 million dollars (million with a little "m") for the entire year.
In 2012, our trade deficit with China was 315billion dollars. That was the largest trade deficit that one nation has had with another nation in the history of the world.
In particular, our trade with China is extremely unbalanced. Today, U.S. consumers spendapproximately 4 dollars on goods and services from China for every one dollar that Chinese consumers spend on goods and services from the United States.
But isn't getting cheap stuff from China good?
No, because it costs us good paying jobs.
According to the Economic Policy Institute, the United States is losing half a million jobs to China every single year.
Overall, more than 56,000 manufacturing facilities in the United States have been shut down since 2001. During 2010, manufacturing facilities in the United States were shutting down at a rate of 23 per day. How can anyone say that "things are getting better" when our economic infrastructure is beingabsolutely gutted?
The truth is that there are never going to be enough jobs in America ever again, because millions of our jobs are being sent overseas and millions of our jobs are being lost to technology.
You won't hear this on the news, but the percentage of the civilian labor force in the United States that is employed has been steadily declining every single year since 2006.
Younger workers have been hit particularly hard. In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent.
If you are under the age of 30 and you aren't living with your parents, there is a really good chance that you are living in poverty. If you can believe it, U.S. families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.
Our economy has been steadily bleeding huge numbers of middle class jobs, and many of those jobs have been replaced by low paying jobs in recent years.
According to one study, 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.
And at this point, an astounding 53 percentof all American workers make less than $30,000 a year.
Oh, but "things are getting better", right?
Maybe if you live on Wall Street or if you arean employee of the federal government.
But for most families this economic decline has been a total nightmare. Median household income in America has fallen forfour consecutive years. Overall, it has declined by over $4000 during that time span.
Sometimes people forget how good things were about a decade ago. About three times as many new homes were sold in the United States in 2005 as were sold in 2012.
But we like to live in denial.
In fact, a lot of families are trying to keep up their standards of living by going into tremendous amounts of debt.
Back in 1983, the bottom 95 percent of all income earners in the United States had 62 cents of debt for every dollar that they earned. By 2007, that figure had soared to $1.48.
Fake it until you make it, right?
But how much debt can our system possibly handle?
Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
Total credit card debt in the United States is now more than 8 times larger than it was just 30 years ago.
We are a nation that is completely addicted to debt, but as the financial crisis of 2008 demonstrated, all of that debt can have horrific consequences.
As the economy has slowed in recent years, the Federal Reserve has decided that "the solution" is to recklessly print money in an attempt to get the debt spiral cranked up again.
Have they gone overboard? You be the judge…
And of course this won't have any affect on the value of the money that you have been saving up all these years right?
Every single dollar that you own is continually losing value…
Overall, the value of the U.S. dollar has declined by more than 96 percent since the Federal Reserve was first created.
As the cost of living continues to go up and wages continue to go down, millions of American families have fallen out of the middle class and into poverty.
If you can believe it, the number of Americans on food stamps has grown from about 17 million in the year 2000 to more than 47 million today.
But "things are getting better", right?
Incredibly, more than a million public school students in the United States are homeless. This is the first time that has ever happened in our history.
But "things are getting better", right?
There are now 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001.
But "things are getting better", right?
In 1999, 64.1 percent of all Americans were covered by employment-based health insurance. Today, only 55.1 percent are covered by employment-based health insurance.
But "things are getting better", right?
Today, more Americans than ever have found themselves forced to turn to the federal government for help.
Overall, the federal government runs nearly 80 different "means-tested welfare programs", and at this point more than 100 million Americans are enrolled in at least one of them.
According to the U.S. Census Bureau, 49 percent of all Americans live in a home that receives direct monetary benefits from the federal government. Back in 1983, less than a third of all Americans lived in a home that received direct monetary benefits from the federal government.
So is it a good sign or a bad sign that the percentage of Americans that are financially dependent on the federal government is at an all-time high?
And in future years the number of Americans that are receiving benefits from the federal government is projected to absolutely skyrocket.
Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid, and things are about to get a whole lot worse. It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
If you take a look at Medicare, things are very more sobering.
As I wrote recently, it is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.
At this point, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years. That comes to approximately $328,404 for every single household in the United States.
Are you ready to contribute your share?
Social Security is a complete and total nightmare as well.
Right now, there are approximately 56 million Americans collecting Social Security benefits.
By 2035, that number is projected to soar to an astounding 91 million.
Overall, the Social Security system is facing a134 trillion dollar shortfall over the next 75 years.
Oh, but don't worry because "things are getting better", right?
I honestly do not know how anyone can look at the numbers above and come to the conclusion that the economy is in good shape.
We have accumulated the largest mountain of debt in the history of the world, our economic infrastructure is being gutted, we are bleeding good jobs, government dependence is at an all-time high and we are getting poorer as a nation with each passing day.
But other than that, everything is rainbows and lollipops, right?
If you want to see the economic collapse, just open up your eyes.
And if dramatic changes are not made quickly, things are going to get much, much worse from here.
Please share this article with as many people as possible. Time is quickly running out and there are a whole lot of people out there that we need to wake up while we still can.
One thing I have learned is the incredible confidence people have in our economy, and the near total lack of credible evidence that they are wrong. It’s kind of like loving one’s government instead of their country, it simply makes no sense. Perhaps they don’t want to face the challenge of learning how to acquire protection from the collapse of our Nation. Try this http://harrydentpredictions.com/P209-PPC-Harry-Dent-Predictions-2013-TY.html
Please note, our video requires Flash. You can download it HERE.
June 25th, 2013 by olddog
Did you know that Barack Obama has been secretly negotiating the most important trade agreement since the formation of the World Trade Organization? Did you know that this agreement will impose very strict Internet copyright rules, ban all "Buy American" laws, give Wall Street banks much more freedom to trade risky derivatives and force even more domestic manufacturing offshore? If you have not heard about this treaty, don't feel bad. Obama has refused to even give Congress a copy of the draft agreement and he has banned members of Congress from attending the negotiations. The plan is to keep this treaty secret until the very last minute and then to railroad it through Congress and have it signed into law by October. The treaty is known as "the Trans-Pacific Partnership", and the nations that are reported to be involved in the development of this treaty include the United States, Canada, Japan, South Korea, Australia, New Zealand, Chile, Peru, Brunei, Singapore, Vietnam and Malaysia. Opponents of this treaty refer to it as "the NAFTA of the Pacific", and if it is enacted it will push the deindustrialization of America into overdrive.
The "one world" economic agenda that Barack Obama has been pushing is absolutely killing the U.S. economy. As you will see later in this article, we are losing jobs and businesses at an astounding pace. And each new "free trade" agreement makes things even worse.
For example, just check out the impact that the recent free trade agreement that Obama negotiated with South Korea is having on us…
A 10 percent decline of U.S. exports to Korea
The U.S. trade deficit with Korea has climbed 37 percent
U.S. auto industry has been crippled
Loss of U.S. control where international trade, banking and finance is concerned
A projected 159,000 jobs will be lost
Wait a second – I though that "free trade" agreements were actually supposed toincrease exports.
So why have they declined by 10 percent?
Did someone make a really bad deal?
And of course we have all seen the economic devastation that NAFTA has wrought.
When NAFTA was pushed through Congress in 1993, the United States actually had a tradesurplus with Mexico of 1.6 billion dollars. By 2010, we had a trade deficit with Mexico of61.6 billion dollars.
And "free trade" with China has turned out to be a complete and total nightmare as well.
Back in 1985, our trade deficit with China was approximately 6 million dollars (million with a little "m") for the entire year.
In 2012, our trade deficit with China was 315billion dollars. That was the largest trade deficit that one nation has had with another nation in the history of the world.
But instead of learning from the mistakes of the past, Barack Obama is pressing for more "free trade" agreements.
The New York Times is calling the Trans-Pacific Partnership "the most significant international commercial agreement since the creation of the World Trade Organization in 1995". It is reportedly going to include a whole host of provisions which would never be able to get through Congress on their own. Even though this treaty will affect all of our daily lives, the Obama administration is keeping this treaty a total secret. In fact, Obama won't even show it to Congress even though members of Congress have asked repeatedly to see it…
The agreement, under negotiation since 2008, would set new rules for everything from food safety and financial markets to medicine prices and Internet freedom. It would include at least 12 of the countries bordering the Pacific and be open for more to join. President Obama has said he wants to sign it by October.
Although Congress has exclusive constitutional authority to set the terms of trade, so far the executive branch has managed to resist repeated requests by members of Congress to see the text of the draft agreement and has denied requests from members to attend negotiations as observers — reversing past practice.
While the agreement could rewrite broad sections of nontrade policies affecting Americans’ daily lives, the administration also has rejected demands by outside groups that the nearly complete text be publicly released.
So exactly who in the world does this guy think that he is? Why won't Obama let us know exactly what is in this treaty?
Fortunately, there have been a few leaks. One thing that we have discovered is that this new treaty would reportedly ban all "Buy American laws".
That certainly would not be popular if it got out.
And do you remember SOPA?
The American people wanted nothing to do with the very strict Internet copyright provisions of SOPA and loudly expressed their displeasure to members of Congress.
Unfortunately, now the provisions of SOPA are back. It is being reported that most of the provisions of SOPA have been quietly inserted into this treaty. If this treaty is enacted, those provisions will become law and the American people will not be able to do anything about it.
And according to the New York Times, there are all sorts of other disturbing things that have been slipped into the treaty…
And yet another leak revealed that the deal would include even more expansive incentives to relocate domestic manufacturing offshore than were included in Nafta — a deal that drained millions of manufacturing jobs from the American economy.
The agreement would also be a boon for Wall Street and its campaign to water down regulations put in place after the 2008 financial crisis. Among other things, it would practically forbid bans on risky financial products, including the toxic derivatives that helped cause the crisis in the first place.
Are you starting to understand why the Obama administration is keeping this treaty such a secret?
If the details of this treaty were revealed to the American people right now, it would create such an uproar that Congress would never approve this treaty.
So please share this article with as many people as you can. We have got to get the American people educated about this.
Enough damage has already been done to the U.S. economy by "free trade" agreements. Just consider the following statistics…
-The United States has lost more than 56,000 manufacturing facilities since 2001.
-Back in the year 2000, there were more than 17 million Americans working in manufacturing. Now there are less than 12 million.
-There are less Americans working in manufacturing today than there was in 1950 even though the population of the country has more than doubled since then.
-According to the Economic Policy Institute, America is losing half a million jobs to China every single year.
-According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades if current trends continue.
-Today, corporate profits as a percentage of U.S. GDP are at an all-time high, but wages as a percentage of U.S. GDP are near an all-time low.
-Without enough good jobs, more Americans are becoming dependent on the government. If you can believe it, the number of Americans on food stamps has gone from about 17 million in the year 2000 to more than 47 million today.
-Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.
And things continue to get even worse. The Institute for Supply Management manufacturing index declined to 49.0 in May. Any reading below 50 indicates contraction.
That was the lowest reading that we have seen since June 2009. Just like most of the rest of the world, we are rapidly heading toward another major economic downturn.
And if you want a perfect visual example of what deindustrialization is doing to America, just look at the city of Detroit.
It was once one of the greatest manufacturing cities in the history of the world, but now it is a rotting, decaying, festering hellhole.
According to the New York Times, there are now approximately 70,000 abandoned buildings in Detroit, and at this point the city is so broke that there is talk that the female giraffe at the Detroit Zoo could be sold offto help pay the bills.
For much more on how deindustrialization is ripping the guts out of the U.S. economy, please see the following articles…
1) "55 Reasons Why You Should Buy Products That Are Made In America"
2) "40 Ways That China Is Beating America"
3) "Show This To Anyone That Believes That 'Things Are Getting Better' In America"
4) "10 Amazing Charts That Demonstrate The Slow, Agonizing Death Of The American Worker"
5) "22 Stats That Show How The Emerging One World Economy Is Absolutely Killing American Workers"
What Barack Obama is trying to do is a mind blowing mistake.
The "one world" economic agenda that he is pursuing is destroying the American worker and the American middle class.
U.S. workers are being thrown into a global labor pool with workers on the other side of the planet that live in countries where it is legal to pay slave labor wages.
Do you want to directly compete with a worker on the other side of the globe that is doing your job for a dollar an hour with no benefits?
If not, you need to stand up and make your voice be heard.
There is no way in the world that American workers should have to compete for jobs with workers making slave labor wages in communist China.
What we desperately need are some red-blooded economic patriots to arise and to tell both political parties that we do not want this "one world" economic agenda.
So what do you think?
Will the American people wake up, or will our economy continue to lose thousands of businesses and millions of jobs?
Please feel free to post a comment with your thoughts below…
If Michael Snyder can find this information, and it is true, don’t you think most of Congress and the Senate knows what Obuma is doing?
Do you think they are all out chasing some sex obsession, drinking their self to death, or shooting up with some kind of dope? I’m asking this because it seems absurd that it isn’t common knowledge, and unless Michael has some crystal ball, or genie in a bottle, everyone in DC has known what OBUMA has been doing from the get go. SO, what do you think of our government now????? Make sure everyone you know has a copy of this article!