The Coming Economic Collapse And The Next Great Depression

The Coming Economic Collapse And The Next Great Depression
The forgotten man painting by McNaughton (click image for video) I believe this image best exemplifies where we stand today, pun intended.

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Wednesday, September 26, 2012

Quantitative Easing Did Not Work For The Weimar Republic Either

Did printing vast quantities of money work for the Weimar Republic? Nope. And it won't work for us either. If printing money was the secret to economic success, we could just print up a trillion dollars for every American and be done with it. The truth is that making everyone in America a trillionaire would not mean that we would all suddenly be wealthy. There would be the same amount of "real wealth" in our economy as before. But what it would do is render our currency meaningless and totally destroy faith in our financial system. Sadly, we have not learned the lessons that history has tried to teach us. Back in April 1919, it took 12 German marks to get 1 U.S. dollar. By December 1923, it took approximately 4 trillion German marks to get 1 U.S. dollar. So was the Weimar Republic better off after all of the "quantitative easing" that they did or worse off? Of course they were worse off. They destroyed their currency and wrecked all confidence in their financial system. There was an old joke that if you left a wheelbarrow full of money sitting around in the Weimar Republic that thieves would take the wheelbarrow and they would leave the money behind. Will things eventually get that bad in the United States someday? Of course we are not going to see hyperinflation in the U.S. this week or this month. But don't think that it will never happen. The people of Germany never thought that it would happen to them, but it did. The following is an excerpt from a Wikipedia article about the Weimar Republic. Take note of the similarities between what the Weimar Republic experienced and what we are going through today.... The cause of the immense acceleration of prices that occurred during the German hyperinflation of 1922–23 seemed unclear and unpredictable to those who lived through it, but in retrospect was relatively simple. The Treaty of Versailles imposed a huge debt on Germany that could be paid only in gold or foreign currency. With its gold depleted, the German government attempted to buy foreign currency with German currency, but this caused the German Mark to fall rapidly in value, which greatly increased the number of Marks needed to buy more foreign currency. This caused German prices of goods to rise rapidly which increase the cost of operating the German government which could not be financed by raising taxes. The resulting budget deficit increased rapidly and was financed by the central bank creating more money. When the German people realized that their money was rapidly losing value, they tried to spend it quickly. This increase in monetary velocity caused still more rapid increase in prices which created a vicious cycle. This placed the government and banks between two unacceptable alternatives: if they stopped the inflation this would cause immediate bankruptcies, unemployment, strikes, hunger, violence, collapse of civil order, insurrection, and revolution. If they continued the inflation they would default on their foreign debt. The attempts to avoid both unemployment and insolvency ultimately failed when Germany had both. When the Weimar Republic first started rapidly printing money everything seemed fine at first. Economic activity was buzzing and unemployment was very low. But as the following chart shows, when hyperinflation kicks in, it can happen very quickly. By late 1922, the effects of all of the money printing were really starting to hit the German economy.... Once you start printing money it is really, really hard to stop. By late 1922, inflation was officially out of control. An article in The Economist described what happened next.... Prices roared up. So did unemployment, modest as 1923 began. As October ended, 19% of metal-workers were officially out of work, and half of those left were on short time. Feeble attempts had been made to stabilise prices. Some German states had issued their own would-be stable currency: Baden's was secured on the revenue of state forests, Hanover's convertible into a given quantity of rye. The central authorities issued what became known as “gold loan” notes, payable in 1935. Then, on November 15th, came the Rentenmark, worth 1,000 billion paper marks, or just under 24 American cents, like the gold mark of 1914. Hyperinflation hurts the poor, the elderly and those on fixed incomes the worst. The following is an excerpt from a work by Adam Fergusson.... The rentier classes who depended on savings or pensions, and anyone on a fixed income, were soon in penury, their possessions sold. Barter often took over from purchase. By law rents could not be raised, which allowed employers to pay low wages and impoverished landlords in a country where renting was the norm. The professional classes -- lawyers, doctors, scientists, professors -- found little demand for their services. In due course, the trade unions, no longer able to strike for higher wages (often uncertain what to ask for, so fast became the mark's fall from day to day), went to the wall, too. Workers regularly got wage increases during this time, but they never seemed to keep up with the horrible inflation that was raging all around them. So they steadily became poorer even though the amount of money they were bringing home was steadily increasing. People started to lose all faith in the currency and in the financial system. This had an absolutely devastating effect on the German population. American author Pearl Buck was living in Germany at the time and the following is what she wrote about what she saw.... "The cities were still there, the houses not yet bombed and in ruins, but the victims were millions of people. They had lost their fortunes, their savings; they were dazed and inflation-shocked and did not understand how it had happened to them and who the foe was who had defeated them. Yet they had lost their self-assurance, their feeling that they themselves could be the masters of their own lives if only they worked hard enough; and lost, too, were the old values of morals, of ethics, of decency." Of course not everyone in Germany was opposed to the rampant inflation that was happening. There were some business people that became very wealthy during this time. The hyperinflation rendered their past debts meaningless, and by investing paper money (that would soon be worthless) into assets that would greatly appreciate thanks to inflation, many of them made out like bandits. The key was to take your paper money and spend it on something that would hold value (or even increase in value) as rapidly as possible. The introduction of the Rentenmark brought an end to hyperinflation, but the damage to the stability of the German economy had been done. The German economy went through several wild swings which ultimately resulted in the rise of the Nazis. The following description of this time period is from an article by Alex Kurtagic.... The post-hyperinflationary credit crunch was, not surprisingly followed by a credit boom: starved of money and basic necessities for so long (do not forget the hyperinflation had come directly after defeat in The Great War), many funded lavish lifestyles through borrowing during the second half of the 1920s. We know how that ended, of course: in The Great Depression, which eventually saw the end of the Weimar Republic and the beginning of the National Socialist era. By the end of the decade unemployment really started to take hold in Germany as the following statistics reveal.... September 1928 - 650,000 unemployed September 1929 - 1,320,000 unemployed September 1930 - 3,000,000 unemployed September 1931 - 4,350,000 unemployed September 1932 - 5,102,000 unemployed January 1933 - 6,100,000 unemployed By the end of 1932, over 30 percent of all German workers were unemployed. This created an environment where people were hungry for "change". On January 30th, 1933 Hitler was sworn in as chancellor, and the rest is history. So where will all of this money printing take America? As I wrote about in a previous article, the amount of excess reserves that banks have stashed with the Federal Reserve has risen from about 9 billion dollars on September 10th, 2008 to about 1.5 trillion dollars today.... What is going to happen to inflation when all of those excess reserves start flowing out into the regular economy? It won't be pretty. Just consider the ominous words that Philadelphia Fed President Charles Plosser used earlier this week.... "Inflation is going to occur when excess reserves of this huge balance sheet begin to flow outside into the real economy. I can't tell you when that's going to happen." "When that does begin if we don't engage in a fairly aggressive and effective policy of preventing that from happening, there's no question in my mind that that will lead to lots of inflation." Oh great. And so what is Bernanke doing? He is printing up lots more money. But isn't this supposed to help the economy? I wouldn't count on it. According to USA Today, the following is what Plosser says about the effect that QE3 is likely to have on our economy.... "We are unlikely to see much benefit to growth or to employment from further asset purchases." But we will get more inflation, so our monthly budgets will not go as far as they did before. The other day I was going to the supermarket, and my wife told me that she wanted some croissants. When I got to the bakery section I discovered that it was $4.49 for just four croissants. If it had just been for me, I would have never gotten them. I am the kind of shopper that doesn't even want to look at something unless there is a sale tag on it. But I did get the croissants for my wife. Unfortunately, thanks to Federal Reserve Chairman Ben Bernanke soon none of us may be able to afford to buy croissants. I still remember the days when I could fill up my entire shopping cart for 20 bucks. And it was not that long ago - I am talking about the late 90s. But paying more for food is not the greatest danger we are facing. Bernanke is destroying the credibility of our currency and he is destroying faith in our financial system. Bernanke may believe that he is preventing the next great collapse from happening, but the truth is that what he is doing is going to make the eventual collapse far worse. Better get your wheelbarrows ready.

Monday, July 30, 2012

The Fed On Gold Price Manipulation

Lately various media outlets have been swamped with stories and allegations of precious metal manipulation ranging from the arcane, to the bizarre to the outright ridiculous. At issue is not that these claims of price fraud are unfounded - they very well may be completely true - but without a notarized facsimile of an actual trade ticket signed by Brian Sack, or his replacement Simon Potter, or any of the BIS traders confirming they are indeed selling gold on behalf of the Fed, BOE, ECB, SNB or BOJ simply to keep the price of the metal down, what such constant factless accusations (and no, sorry, a chart showing that the price of gold may go up or go down sharply indicates merely that and nothing about the underlying factors for such a move) do is to habituate the broader public to the real issues surrounding precious metal, and other asset class, manipulation. So instead of searching for circumstantial evidence which one can easily find everywhere, we decided to go straight to the source. To do that we go back to a post we wrote back in September of 2009, based on an internal previously confidential Fed document, which conveniently enough explains everything vis-a-vis gold manipulation and leaves nothing to speculation or misinterpretation. Zero Hedge presents the smoking gun that may provide responses to all the various open questions regarding the Fed's Modus Operandi in the gold arena which answer the core question - motive - courtesy of a declassified memorandum, written by none other than the then Fed Chairman, and addressed to the president of the United States. From Zero Hedge, September 27, 2009. Exclusive Smoking Gun: The Fed On Gold Manipulation Zero Hedge has recently presented several declassified documents from the pre-1971 "Nixon Shock" days, that endorse the case for gold as a major historical factor in US monetary and foreign policy, as demonstrated byState Department and CIA disclosure. Gold's special status in policy and administrative decision-making was a direct factor in Nixon's choice to abolish the gold reserve at a time of an exploding budget deficit. Yet what about the days after 1971, and specifically, how did that critical "behind the scenes" organization, the Federal Reserve, perceive and manipulate gold in the post Bretton-Woods world? Was gold, freed from its shackles to the dollar, once again merely a symbolic representation for money? Zero Hedge presents the smoking gun that may provide responses to all the various open questions, courtesy of a declassified memorandum, written by none other than the then Fed Chairman, addressed to the president of the United States. On June 3, 1975, Fed Chairman Arthur Burns, sent a "Memorandum For The President" to Gerald Ford, which among others CC:ed Secretary of State Henry Kissinger and future Fed Chairman Alan Greenspan, discussing gold, and specifically its fair value, a topic whose prominence, despite former president Nixon's actions, had only managed to grow in the four short years since the abandonment of the gold standard in 1971. In a nutshell Burns' entire argument revolves around the equivalency of gold and money, and furthermore points out that if the Fed does not control this core relationship, it would "easily frustrate our efforts to control world liquidity" but also "dangerously prejudge the shape of the future monetary system." Furthermore, the memo goes on to highlight the extensive level of gold price manipulation by central banks even after the gold standard has been formally abolished. The problem with accounting for gold at fair market value: the risk of massive liquidity creation, which in those long-gone days of 1975 "could result in the addition of up to $150 billion to the nominal value of countries' reserves." One only wonders what would happen today if gold was allowed to attain its fair price status. And the threat, according to Burns: "liquidity creation of such extraordinary magnitude would seriously endanger, perhaps even frustrate, out efforts and those of other prudent nations to get inflation under reasonable control." Aside from the gratuitous observation that even 34 years ago it was painfully obvious how "massive" liquidity could and would result in runaway inflation and the Fed actually cared about this potential danger, what highlights the hypocrisy of the Fed is that when it comes to drowning the world in excess pieces of paper, only the United States should have the right to do so. Another notable observation is that despite a muted antagonism between the Fed and the US Treasury persisting for decades, the fuse is and always has been short, and the conflict can promptly hit a crescendo, with the Fed ultimately always getting the upper hand. In the case of the Burns memo, the Fed's position was diametrically opposed to what the Treasury proposed was the proper approach. The result: full on assault by the Federal Reserve over the Treasury's credibility and even then, more than three decades ago, a veiled threat by the Fed involving escalating problems if the recommendation of the Treasury was picked over that of the Fed. "Severe criticism on the part of prominent and influential financiers would inevitably follow if the Treasury's present position prevailed." It is not surprising that the Fed's modus operandi has not changed one bit since 1975: it is our way or virtually assured destruction/embarrassment way. Additionally, a curious tangent of the Burns memo is the fact that gold was explicitly used as an engine to enact political doctrine: "If the United States took a stand on the gold question that failed to satisfy the French in current international negotiations, would there be adverse economic or political consequences? I doubt it... If we do ever accede to French views on gold, we should at least use our bargaining leverage to achieve some major political advantage." And while gold as a policy mechanism was unable to satisfy its role this time, one wonders on how many subsequent occasions was global democracy trampled over in order to placate the US Federal Reserve: "I have consulted Henry Kissinger as to whether there is some political quid pro quo we might want to extract from the French in exchange for acceding to some part or all of their desired position on gold. But Henry tells me there is none at this time." At some point governments of advanced nations will say "enough" to the covert domination of their controlling bodies by the Federal Reserve, which through manipulation of its gold and money interests, effectively has control over not just the French, but every government which has a monetary basis to its respective economy and a relationship to the US "reserve" currency... Which means virtually every country in the world. The backlash, if and when it occurs, will be memorable. Lastly, the memo presents a useful snapshot into the cloak-and-dagger, and highly nebulous world of Central Bank negotiations and gold price manipulation: "I have a secret understanding in writing with the Bundesbank that Germany will not buy gold, either from the market or from another government, at a price above the official price." So to all conspiracy theorists claiming that gold is being manipulated on a daily basis by the Federal Reserve: when it occurs over and over, and is so well documented, it is no longer a theory, it is merely sad. And the fact that the US government goes to great lengths to hide the illicit dealings of the Federal Reserve, which through its monetary tentacles, has prima facie control over not just US policy but also over sovereign governments, is an unprecedented failure in the checks and balances system that the founding fathers had planned when they created the United States of America. Yet saddest is that the United States no longer pursues strategic goals that are in the best interest of the majority of its citizens, but merely manipulates other, less powerful nations into a servile existence that only provides gain to a very limited subset of the American financial oligarchy. It is time for the Fed's unprecedented control over affairs, both global and domestic, to end. Full memo from Arthur Burns presented, compliments of Geoffrey Batt who collaborated in the creation of this post. http://www.scribd.com/doc/20314099/Fed-Arthur-Burns-on-Gold-6-3-1975 * * * As a post-script to all those complaining about gold, silver and other PM price suppression, here is one simple question: can one buy more gold at $1,600 or at $16,000? This is not a trick question. Average: -- Thanks, Scott

Wednesday, July 18, 2012

Bad Economic Signs 2012

In January of this year, I wrote an analytic financial piece entitled ‘Baltic Dry Index Signals Renewed Market Collapse’: http://www.alt-market.com/articles/540-baltic-dry-index-signals-renewed-market-collapse In that article I discussed the record breaking low hit by the BDI and its implications for the global economy; namely, that it signaled a steep decline in true demand around the world for raw materials used in the manufacture of consumer goods, and that similar declines in the BDI’s past have almost always prophesized a crisis event in financial markets. The mainstream media attempted to write off the implosion of the BDI as a fluke, tied to the “overproductions of cargo ships”, instead of a warning sign of deteriorating demand. Of course, the past 6 months have proven that assertion to be entirely false. Manufacturing has tumbled in the U.S., the EU, and Asia simultaneously as orders drop back to the dismal levels last seen in 2008-2009 after the credit crisis first took hold: http://www.reuters.com/article/2012/06/01/us-global-economy-idUSBRE85008R20120601 http://articles.latimes.com/2012/jul/03/news/us-manufacturing-down-20120703 http://www.themanufacturer.com/articles/uk-production-falls-to-three-year-low-as-europe-crisis-worsens/ http://www.tokyotimes.com/2012/weak-demand-in-china-and-europe-hurts-japanese-exports/ Despite the astonishing amount of manipulation that goes into our fiscal system by major banks, there are still a few fundamental rules to economics that never change. The bottom line? Demand around the world is derailing, hinting at a broad spectrum disintegration of public buying power. Where demand goes, so goes the economy. As I have pointed out in the past when explaining the importance of the BDI, crashes in the index are usually made visible on mainstreet around 8 months to a year after the event. That is to say, the economies of multiple nations move into a widely felt crisis event around 8 to 12 months after the BDI crashes. There is a strange delayed reaction between the initial exposure of weakness in the financial system and the public’s realization of the truth, sort of like Wile E. Coyote dashing off a cliff in the cartoons only to continue running in mid-air above the abyss below. It is a testament to the fact that beyond the math, there is an undeniable power of psychology in our economy. The investment world naively believes it can fly, even with the weight of endless debt around its ankles, and for a very short time, that pure delirious oblivious belief sustains the markets. Eventually, though, gravity always triumphs over fantasy… In May, I also discussed the impending disaster in the EU in light of elections which would obviously lead to a clash (or engineered clash) between proponents of austerity and proponents of endless stimulus spending. I suggested that this clash would trigger a possible remodeling or complete breakdown of the European Union in the near future: http://www.alt-market.com/articles/765-economic-alert-if-youre-not-worried-yetyou-should-be Today, I do not think that it would be outlandish to suggest (even to the casual market observer) that the EU has indeed been fractured, though the establishment still strives to maintain the fa├žade. Spain and Italy have both requested bailouts from the ECB, finally exposing a problem which alternative analysts have been warning about for years. While the mainstream media has been bicycle-kicking the long dead horse of Greece, the much more detrimental problems of the rest of the EU have been completely ignored. Only now are investors beginning to understand that there is no such thing as a “Greek Contagion”; the whole of Europe has been quietly suffering through a debt malaise that surpasses the Greek issue. Still, central banks pushed the idea that Greece was the gangrenous toe of the EU, claiming it had to be cured or amputated, or the infection would invade the entire body. The truth is, Europe has been host to a systemic disease from the very beginning. Greece is just a side-note. The UK has openly admitted that it has “returned” to recession. Mass credit downgrades have been issued by S&P and Moody’s in primary EU economies, including France and Spain. Italy’s credit rating has been cut only two notches above junk status and its bond sales have turned to Jell-O. Spain has declared austerity cuts which include the confiscation of employee pension funds. Does this sound like an economic body near “recovery”, as was the rhetoric spouted by the MSM a year ago, or, does it sound like the EU has gone off the deep end? In the meantime, China continues to court their global trading partners with bilateral trade agreements designed to remove the dollar as the world reserve currency, and recent events appear to be hastening this process. With American and European demand faltering, Chinese manufacturers are threatened with an even more severe export breakdown than they saw back in 2008, and so, it is only a matter of time before the BRIC and ASEAN economic blocs fully solidify their trade partnerships outside of the West, and away from the dollar. The year of 2012 has proven to be the most startling as far as financial news has been concerned. Vastly more startling to me than 2008. In 2008, the illusion of bank coherence and government action was carefully molded for the consumption of the masses. The intimate connections between government and corporate fraud were glossed over with expert care. There was an active and methodical effort to make us believe that the problems of 2008 were peripheral, and that the system at its foundation was sound. This time around, the corruption has become utterly blatant and disturbingly nonchalant. There is no attempt on the part of central and corporate banking interests anymore to hide the fact that the entire edifice is a cheap magic trick. In fact, they now parade their distortions as if they are “helping” the country, instead of destroying it. When criminals are no longer concerned with hiding their crimes, it is time for the rest of us to start worrying. That is to say, the current behavior of the establishment leads me to believe that a new phase in the crisis is about to arise. Three recent events in particular (on top of all that has already happened this year) should be noted by those who wish to gauge the acceleration of financial hazard around the world: Multiple Central Banks Issuing Policy Changes Simultaneously Only a week ago, the supposedly independent and sovereign central banks of China, the UK, and the EU made multilateral policy changes including cutting interest rates to zero and reinstituting stimulus measure all within the SAME HOUR of each other: http://www.reuters.com/article/2012/07/05/us-centralbanks-action-idUSBRE8640RN20120705 This is a disturbing and open admission by central banks that they not only dominate the economic structure of their host countries, but they do so in a coordinated fashion. In the past, central bankers have made a point to at least pretend that they do not work in tandem with each other and are not centralized around a global methodology or hierarchy. Today, they do not seem to mind if the public is aware of how they really operate. Some might argue that central banks of individual nations have cooperated in the past, and that this is nothing new. Partly true. Central banks have enacted policy initiatives in tandem with each other before, but usually only after absurd levels fanfare and summits galore. The pageantry of G8’s and G20’s and Davos and any number of other global meetings were a fulcrum point which central banks used to buy political capital with sovereign populations. They had planned to institute these multilateral economic actions anyway, but the pageantry and theater came first. Today, private central banks are taking joint action without ANY public meetings, even fake meetings. I feel that this is the start of an expedited trend towards full centralization of sovereign economies, and that soon, central banks will act as if single broad spectrum global monetary policy measures and global economic governance are legal and “commonplace”. Trade Volume Collapsing The S&P has now generated the worst market volume in over a decade. Small market investors are fleeing in droves away from stocks, leaving only the big players to dominate the field: http://www.bloomberg.com/news/2012-07-02/volatility-surging-in-s-p-500-with-volume-lowest-in-decade-1-.html This extreme lack of volume will facilitate a return to volatility, and we are about to see the same kind of massive stock spikes and drops that we tasted three years ago. I would like to point out that the Fed, almost religiously, waits until stock markets go into cardiac arrest before announcing new stimulus measures and quantitative easing. They delay until the investment world begs for printing, and then, they give it to them, with a smile. The Libor (London Interbank Offered Rate) Scandal Like the bankruptcy of Lehman Bros. that heralded the credit crisis, the Libor Scandal has the potential to rock the pillars of the banking world like nothing I have ever seen before. The average person needs to understand three things about Libor: 1) The manipulation of loans and credit swaps through the Libor interest rate mechanism has allowed big banks to hide the true extend of their incredible debts since the 2008 derivatives implosion. Some mainstream economists are actually calling this a “good thing”, because, according to them, the lie of Libor fooled investors into supporting the markets where they may not have otherwise if they had known the truth. They say the lie “averted Armageddon”. Frankly, this is idiotic. Libor has saved nothing, and the lack of transparency and honesty from corporate banks has only postponed an inevitable calamity which will be even worse now because it was allowed to continue on for years longer than it should have. 2) Barclays and other institutions have claimed that they “had to use Libor fraud”. Why? Because every other major bank used it! Their argument is that they had to lie in order to remain competitive. Even if you buy this rationalization, you have to acknowledge the deeper problem here: Barclays is essentially pointing out that EVERY major bank uses Libor to hide the fact that they are in dire straights. In 2012, the system has openly confessed its own insolvency. You do not need a fortune telling gypsy to predict a major collapse for you; the banks have just told us exactly what is about to happen. 3) Finally, regulators and central banks on both sides of the ocean, from the U.S. to the UK, from the Federal Reserve to the Bank Of England, relent that they KNEW about the Libor fraud being conducted by numerous banks as early as 2008, but kept their mouths shut. This shows not only that central banks have been complicit in financial criminal activities, but governments have played along as well. This fits right in with what I have stated for years: The economic collapse could not possibly be a “random” event. Its culmination requires the collusion of so many corporate and government entities that it would be foolish to call it anything other than conspiracy. So, what comes next? According to the path which I predicted back in January, the economy is near a climax event. Perhaps an announcement of QE3 leading to ugly dollar devaluation, perhaps another bankruptcy by a “too big to fail” conglomerate leading to a firestorm in stocks, or perhaps even the exit of certain countries from the EU. Maybe all of this and more. The point is, keep your eyes fixed on the financial sector as we move into fall and winter. There is a bleak harvest on the horizon… You can contact Brandon Smith at: brandon@alt-market.com

Saturday, July 14, 2012

How Your Bank Account Could Disappear

How Your Bank Account Could Disappear Friday, 13 July 2012 05:23 Jeff Nielson This article was written by Jeff Nielson and originally published at BullionBullsCanada.com On the same morning we hear that ¼ of Wall Street executives think that fraud is a necessary part of “doing business” in the financial sector, we hear of a second “MF Global”. The U.S.’s so-called regulators are now reporting that somewhere around $220 million in customer funds is “missing” at a financial institution known as PFGBest; once again closing the barn door after all the cows have run off. With at least one out of every four bankers at U.S. Big Banks (that’s how many admitted to being crooks in the survey) thinking that stealing is part of their job descriptions, it’s very important for people to realize how little protection there now is between these thieves and your bank accounts. Based on the writing of a number of other individuals with more expertise in these markets, it is apparently an inherently fraudulent banking process known as “rehypothecation” which is allowing the mass-plundering of accounts at U.S. financial institutions, with other Western financial regulatory authorities also rubber-stamping this relatively new form of bankster crime. Rehypothecation is a heinous practice permitted by the pretend-regulators of Western markets, where financial institutions are allowed to pledge their clients’ funds as collateral to cover their own gambling debts. I say “inherently fraudulent” since few of the clients of these financial institutions would ever knowingly enter into contracts with these gambling-addicts where their cash could be used to cover their bankers’ gambling debts. Instead, what is happening here is that the rehypothecation clauses are being buried in the “small print” of these contracts and (obviously) never properly explained to these clients: seemingly textbook fraudulent misrepresentation. The only “advantage” to a client into entering into such a contract is a slight reduction in fees, or slightly improved interest rate – certainly not near enough to entice people into risking some near-100% loss insuring someone else’s gambling debts. So we have our “regulators” (i.e. the only protectors of our funds in the hands of these admitted thieves) giving these fraud-factories the green light to enter into these inherently fraudulent contracts, putting any/all funds of these clients in permanent jeopardy. Thus it’s important to outline how this could happen with ordinary bank accounts. First it must be noted that the Corporate Media (loyal friends of the Big Banks) are referring to this as a “brokerage” problem. Understand that a brokerage is nothing but a legal “bookie”, an entity which takes (and makes) bets, and which must hold the funds of its “customers” in order to do business. Apparently the principal difference now between a “legal” bookie and an “illegal” bookie is that an illegal bookie is much less likely to use his customers’ funds to cover his own bad bets. What people must also understand is that the world’s biggest bookies, indeed, the biggest bookies in the history of the world are the Big Banks themselves (specifically U.S. Big Banks). Most of their gambling is done in their own, rigged casino: the $1.5 quadrillion derivatives market. Note that you won’t see that number quoted by the Corporate Media (any longer). As concern about the size of the bankers’ mountain of bets grew; the bankers asked the Master Bookie – the Bank for International Settlements – to change the “definition” of this market, and instantly the derivatives market shrunk to 1/3rd its former size. As many know, the BIS is known as “the central bank for central banks”. What a smaller number of people know is that this is the world’s great money-laundering vehicle, an entity created just before World War II specifically to allow Western industrialists to continue to do a vast amount of business with Adolph Hitler. In other words, it’s not exactly a reliable source for information. So I choose to use the same numbers that the banksters previously used themselves, before they started getting defensive about the insane amounts of their gambling. We are being led to believe by the Corporate Media (another unreliable source) that this problem is only a risk for all individuals with “brokerage” accounts, however as we piece together all the pieces of the puzzle (already revealed) this is what we see before us: 1) Our banking regulators knowingly allow financial institutions to engage in recklessly misleading (if not outright fraudulent) contracts with their clients, through the use of complex “small print” in their account contracts with clients. 2) The three largest U.S. “banks” by deposit (JP Morgan, Bank of America, Citigroup) have made bets in their own rigged casino, which total well in excess of $100 trillion, an amount which completely dwarfs their total, combined deposits (and assets). 3) A large portion of those bets occur in the $60+ trillion credit default swap market. Pay-outs in these markets can (and do) exceed 300 times the amount of the original bet. It is bets in this market which “blew up” AIG, requiring more than $150 billion in immediate government aid. 4) Following the Crash of ’08; these same banks mooched a package of hand-outs, tax-breaks and “guarantees” (i.e. future hand-outs) from the Bush regime in excess of $15 trillion, the last time their gambling debts went bad on them – and all of these banks have been allowed to dramatically increase the total amount of their gambling since then. 5) It would take only a minor change in the gambling contracts in which these bankers engage to allow their creditors to seize funds out of ordinary bank accounts. 6) The existing language for the bank accounts of these U.S. banks is possibly already so vague (and prejudicial to clients) that it would allow these banks to reinterpret the terms of these bank accounts – and allow rehypothecation to be used to rob the holders of ordinary bank accounts, people who themselves make no “bets” in markets whatsoever. Alternately, customers could be blitzed with an offer for “new and improved” bank accounts, where terms allowing rehypothecation are slipped into the contract, with the banks knowing that the “regulators” will do nothing to warn account-holders of the gigantic risk they are taking. The same media apologists who would scoff at this suggestion are the same shills who claimed “there could never be another MF Global”. Meanwhile we have the biggest gambler of them all, JP Morgan, just confessing to having made more of these bad bets – which continue growing larger by the $billion. When we add-in the fact that the U.S.’s mark-to-fraud accounting rules mean that these banks are easily able to hide the level of their insolvency, the pretend-regulators apparently don’t have the slightest idea of the level of risk to which account-holders are being exposed. This is the charitable explanation for these facts. The alternative interpretation is that these “regulators” are direct accomplices of the criminal banking cabal. I have consistently referred to the U.S. financial sector as a “crime syndicate” for several years now, often drawing considerable criticism for supposedly hyperbolic rhetoric. Obviously I have been completely vindicated here. One quarter of these bankers are now confessed thieves. The pretend-regulators (notably the SEC and CFTC) on a daily basis rubber-stamp the banksters’ acts of fraud (where they are caught red-handed) – handing out totally trivial fines, and not even requiring these thieves to admit their guilt. If there are any substantive differences between how the U.S. financial sector is allowed to operate versus any generic definition of a “crime syndicate”, it would be enlightening to hear what those (supposed) differences are. And now these thieves are closer than ever to simply reaching into peoples’ bank accounts and grabbing every dollar they can steal. The principal reason why I and others have urged people to convert their banker-paper to gold and silver in the past was the 1,000 year track-record of these bankers’ paper, fiat currencies always going to zero (through the bankers recklessly diluting these currencies via over-printing). However, we can add to that a much more basic reason: every ounce of gold and silver which you purchase (and store in your own home “safe” or other secure location) is wealth which cannot be stolen by the banking crime syndicate. This is what commentators are really referring to when they speak of “counterparty risk”: placing your future financial security in someone else’s hands. What the large financial institutions of the 21st century have taught us (through the cruel “lessons” of their serial crimes) is that there is no one in the world whom you can trust less with your money than a banker.

Thursday, July 12, 2012

Ron Paul, when asked if we should start a third party said maybe we should start a second party first.

It is an absolute fact that no matter which of the two major parties in Washington, D.C., is in power, the freedoms and liberties of the American people continue to be eroded. However, this does NOT mean that there are not basic differences between the two parties. The two parties differ greatly on HOW government will take our liberties. Where they are similar is in the fact that neither of them has any interest in preserving liberty. Until the American people awaken to this reality, whatever freedoms we have left in this country are doomed. Let me ask you a question: does it really matter whether a free man is enslaved by a socialist state or a fascist state? Are the prisons any more accommodating? Are the lashes from the whip any less painful? Is the agony of losing a loved one any less grievous? Is the persecution any less revolting? What difference does it make to a free man if his liberties are stolen by an Adolf Hitler or by a Joseph Stalin? Do you want a quick reference to the difference between how the Democrats and Republicans in Washington, D.C., are stealing our liberties? When the Democrats control things, America gets more socialism; when the Republicans control things, America gets more corporatism, which is a polite word for fascism. Socialism requires government to own everything, while fascism requires government to control everything. And remember, too, fascists and socialists have always hated each other. Big deal! Fascists and socialists alike hate freedomists, which is why inside-the-beltway Repubs and Dems can’t stand people like Ron Paul, Bob Barr, and yours truly. (Remember the MIAC report identifying the three of us, and our supporters, as being potential “dangerous militia” members?) So who cares which of these two parties happens to be in power? Our freedoms continue to be under siege. That’s why the battle in Washington politics has nothing to do with preserving freedom, but everything to do with HOW government will take freedom. Will they take it by ownership or by control? And, unfortunately, what we have right now is the worst of both worlds: government is using a combination of both ownership and control to steal our liberties. Why? Because except for a very precious few elected civil magistrates (like Congressman Ron Paul), there is no one on Capitol Hill or the White House who remotely understands--or fights for--the principles of liberty. Even worse is that when the Donkeys and the Elephants do agree, it almost always is in an effort to point the bayonets at the American citizenry. What does it matter whether government owns it or controls it? What does it matter whether it more resembles socialism of corporatism? What it doesn’t look anything like, is FREEDOM! Take the Democrat/Republican debate over Obamacare. Even if Mitt Romney and the GOP prevail in the November elections, Obamacare will be replaced with Romneycare. And Romneycare will be 85% Obamacare, with a slight shift toward government control and a slight shift away from government ownership. Again, I say, BIG DEAL! What neither party is talking about is that the federal government has no business being in health care. Period! Just like the federal government has no business being in over 90% of everything it is involved in today. But who do you hear saying that in Washington, D.C., except Ron Paul? Take the issue of the burgeoning surveillance society. What does it matter which major party is in power in Washington, D.C.? The TSA gets more and more obnoxiously tyrannical; abuses of civil liberties under the guise of fighting a “war on drugs” continues unabated; abuses of the Bill of Rights under the guise of fighting a “war on terror” continues unabated; the federal police state continues to grow exponentially; unconstitutional foreign entanglements continue to proliferate; ad infinitum, ad nauseam. In a book that I have recommended numerous times, “Hitler’s Cross,” Erwin Lutzer writes on page 72, “Through surveillance, wiretaps, spying, and rewarding those who betrayed their friends, Hitler tried to control the citizens of Germany.” On page 73, Lutzer continues the thought saying, “But Hitler did not have the technology to bring every subject of his realm into line.” So, given the technology that is available today, what would Hitler do differently if he were running things in Washington, D.C.? I ask readers to think seriously about that question. What would Hitler do differently? Today, the federal government monitors virtually every piece of electronic communication. The federal government monitors virtually every major banking transaction. It has spies infiltrated in even harmless organizations all over the country. It threatens people with the loss of their jobs or freedom (or both) to betray their friends. It spies on us with satellites; it spies on us with drones. On July 6, 2012, President Obama signed an Executive Order authorizing the federal government to take control of America’s entire communications industry. In 2006, under President George W. Bush, the US military began planning armed confrontation against the American citizenry. (I have the document in my possession.) And, of course, we must not overlook the Patriot Act which has been authorized and reauthorized under both Republicans and Democrats; the Military Commission Act which was signed by G.W. Bush; NDAA 2012 and 2013 which was signed by President Barack Obama, and which was passed by both Republicans and Democrats. And let’s not forget the federal attack against the Branch Davidians under Democrats Bill Clinton and Janet Reno, and the assault against the Randy Weaver household under Republican President George Herbert Walker Bush. So, again, pick your poison. Both the socialist-leaning Democrats and the corporatist-leaning Republicans in Washington, D.C., meet together in pointing the bayonet against the American citizenry. And you really wonder why nothing significant changes in this country? And in this regard, the platforms of the two major parties are completely meaningless! I dare say that Barack Obama has never read the Democrat platform and doesn’t care one iota what it says. I also guarantee you that Mitt Romney hasn’t read the Republican platform and doesn’t care one iota what it says either. Can anyone remember when Republican Presidential candidate, Bob Dole, in a rare moment of candor, publicly admitted that he had not read his party’s platform and didn’t care what it said? Party platforms are for the benefit of rank and file party members to make them feel like their ideas count for something to the party leadership. They don’t! So, do the Democrats and Republicans in Washington, D.C., differ? Yes! They differ on how our freedoms will be taken from us. They differ on the degree of government ownership and control. They differ on the nuances of political tyranny. Where they are twins is in their lust and ambition for power, in their approval of stripping more and more freedoms from the American people, and in their absolute and total disregard for constitutional government. Without some sort of “Great Awakening” both politically and spiritually, whatever is left of our liberties is doomed--and both major parties in Washington, D.C., are equally culpable. *If you appreciate this column and want to help me distribute these editorial opinions to an ever-growing audience, donations may now be made by credit card, check, or Money Order. Use this link: http://chuckbaldwinlive.com/home/?page_id=19

Inside the Beltway: Choosing the dream

Can Americans discern between the “dreams” of President Obama and those of the Founding Fathers? The makers of the upcoming documentary film “2016: Obama’s America” hope so. “I’ve got a strong desire to defend against the changes in our culture, our life, our laws, our freedom. We now have someone in office who has professed a desire for change, and this has disturbed me,” producer Gerald R. Molen tells Inside the Beltway. Mr. Molen, 77, is the Hollywood heavyweight and Oscar-winning producer behind “Schindler’s List,” “Rain Man,”and “Jurassic Park” among many other blockbusters. But he prefers life in Montana to that in Tinseltown, and as a former U.S. Marine, he has a strong memory of a traditional, cheerful, can-do America. He’s also not too keen on Mr. Obama’s penchant to “go around Congress,” among other things. “We don’t have an imperial presidency. He’s not the king,” Mr. Molen says. Above all, he hopes the film will jar a passive audience with proof of the political and cultural change that may not be for the better in the long run. “I hope people find out that it’s time to do their own research, get involved and ask this question: What kind of country do we want?” the producer says, predicting that public reaction to the project “will come alive” once the film is released nationwide July 27. The documentary itself is based on conservative author Dinesh D'Souza’s best-seller “The Roots of Obama’s Rage,” published last year. “All Americans want the same kind of country. Being united would be wonderful. But we’re divided now, and it’s frightening,” Mr. Molen says. Is there similar fare to come - perhaps another documentary meant to detect dangerous fissures in the bedrock of America? “I hope it’s not necessary for me to stay in this genre. But if the need arises, I’m there. I’ll stand up,” Mr. Molen says. THE CHENEY TOUCH It is a meeting of the minds amid spectacular scenery and sumptuous mountain lodges. On Thursday, former Vice President Dick Cheney will open the doors to his own home near Jackson Hole, Wyo., to host a campaign fundraiser for Mitt Romney. There’s a preliminary reception at Teton Pines Country Club, where the fare typically includes such delicacies as bacon-wrapped tiger prawns upon cheddar cheese grits and “sterling silver” beef tenderloins. The reception will be followed by a private dinner with Mr. Cheney and Mr. Romney, attended by notables from the oil, agriculture and venture-capitalist realms. “It’s the old guard handing off the torch to the new guard here,” Republican strategist Ron Bonjean tells the Beltway. “They share a philosophy. A new Romney administration would follow the same Republican principles. And it would definitely foster a new age as well.” But there’s never a dull moment, even in the towering Tetons. Protesters lurk: a counterrally is planned at a nearby crossroads. Organizers are described as “local rabble-rousers and non-Republicans” by Jake Nichols, a columnist for Planet Jackson Hole, an independent paper. “Maybe a Romney effigy will be in order,” he predicts, adding, “Mitt masks will be distributed. Participants are urged to follow a code of conduct and dress in a patriotic manner ” And among their protest signs: “Romney: Government of the 1 percent, by the 1 percent, and for the 1 percent.” BROADCAST FATIGUE “Americans’ confidence in television news is at a new low, with 21 percent of adults expressing a great deal or quite a lot of confidence in it. This marks a decline from 27 percent last year and from 46 percent when Gallup started tracking confidence in television news in 1993,” says Gallup analyst Lymari Morales. It’s tough all over. “Liberals and moderates lost so much confidence in television news this year - 11 and 10 points, respectively - that their views are now more akin to conservatives’ views,” the analyst says. Actually, their views are worse: 19 percent of liberals, 20 percent of moderates and 22 percent of conservatives say they still have that coveted confidence. COW POLICE Remember all the alarmist claims that cow flatulence causes global warming? Now it’s the cows who are victims. A line from a new University of Washington study tells all: “Got milk? Climate change means stressed cows in southern U.S. may have less.” Lead author and economist Yoram Bauman, who compared high-resolution climate data and county-level dairy industry data, presents his findings Friday at the 4th International Conference on Climate Change. HOLA, AMERICA “Quiero decirles como es mi padre, Mitt Romney. El es un hombre de grandes convicciones.” (Translated: “I want to tell you about my father, Mitt Romney. He is a man of great convictions”). And so says Craig Romney in a new Spanish-language campaign spot on behalf of his father. The bilingual Craig Romney, the youngest of the five Romney sons, learned the language as a missionary in Chile. The campaign also has launched a new website to woo the Hispanic voting bloc, which numbers about 31 million registered voters. The feisty new site is www.juntosconromney.com — the address meaning “Together with Romney.” POLL DU JOUR • 36 percent of Americans say President Obama is “very liberal”; 20 percent say he is liberal; 21 percent say he is moderate. • 17 percent are not sure of his ideology; 4 percent say the president is conservative; 1 percent, “very conservative.” • 28 percent say Mitt Romney is conservative; 19 percent say he is “very conservative”; 24 percent say he is moderate. • 23 percent are unsure of his ideology; 4 percent say Mr. Romney is liberal; 2 percent, “very liberal.” • 33 percent of American currently describe themselves as political moderates. • 24 percent are conservative; 9 percent are “very conservative.” *11 percent are liberal; 8 percent are “very liberal”; 16 percent are “not sure” of their ideology. Source: The Economist/YouGov poll of 1,000 U.S. adults conducted July 7-9.

Saturday, June 9, 2012


By Chuck Baldwin June 7, 2012 Archived column: http://chuckbaldwinlive.com/home/archives/4877 In a recent column posted on LewRockwell.com, Judge Andrew Napolitano highlighted a recent New York Times investigative report that reveals how President Barack Obama is engaging in secret assassinations worldwide. Judge Napolitano begins, “The leader of the government regularly sits down with his senior generals and spies and advisers and reviews a list of the people they want him to authorize their agents to kill. They do this every Tuesday morning when the leader is in town. The leader once condemned any practice even close to this, but now relishes the killing because he has convinced himself that it is a sane and sterile way to keep his country safe and himself in power. The leader, who is running for re-election, even invited his campaign manager to join the group that decides whom to kill. “This is not from a work of fiction, and it is not describing a series of events in the Kremlin or Beijing or Pyongyang. It is a fair summary of a 6,000-word investigative report in The New York Times earlier this week about the White House of Barack Obama. Two Times journalists, Jo Becker and Scott Shane, painstakingly and chillingly reported that the former lecturer in constitutional law and liberal senator who railed against torture and Gitmo now weekly reviews a secret kill list, personally decides who should be killed and then dispatches killers all over the world--and some of his killers have killed Americans. “We have known for some time that President Obama is waging a private war. By that I mean he is using the CIA on his own--and not the military after congressional authorization--to fire drones at thousands of persons in foreign lands, usually while they are riding in a car or a truck. He has done this both with the consent and over the objection of the governments of the countries in which he has killed. He doesn't want to talk about this, but he doesn't deny it. How chilling is it that David Axelrod--the president's campaign manager--has periodically seen the secret kill list? Might this be to keep the killings politically correct?” The judge concludes, “Since 9/11, the United States government has set up national security systems that function not under the Constitution, not under the Geneva Conventions, not under the rule of law, not under the rules of war, not under federal law, but under a new secret system crafted by the Bush administration and personally directed by Obama, the same Obama who condemned these rules as senator and then extended them as president. In the name of fighting demons in pick-up trucks and wars that Congress has never declared, the government shreds our rights, taps our cellphones, reads our emails, kills innocents abroad, strip searches 87-year-old grandmothers in wheelchairs and 3-year-old babies in their mothers' arms, and offers secrecy when the law requires accountability. “Obama has argued that his careful consideration of each person he orders killed and the narrow use of deadly force are an adequate and constitutional substitute for due process. The Constitution provides for no such thing. He has also argued that the use of drones to do his killing is humane since they are ‘surgical’ and only kill their targets. We know that is incorrect. And he has argued that these killings are consistent with our values. What is he talking about? The essence of our values is the rule of law, not the rule of presidents.” See Judge Napolitano’s column at: http://lewrockwell.com/napolitano/napolitano56.1.html Let me begin by offering kudos to Judge Napolitano for his trenchant column, and kudos to New York Times reporters Jo Becker and Scott Shane for their blockbuster report. Do readers not find it a little curious that hardly anyone in the national press corps--or even in the vast majority of the local media--has not picked up the Times report? After all, the New York Times is the unquestioned flagship newspaper of America. The vast majority of newspapers around the country rely on the NYT for much of their reporting. So, why didn’t we see this report blasted on front pages all across the United States? Do newspaper publishers and editors really think that this report is not Page One worthy? Is not this the kind of story that the freedom of the press was directly designed for? And where were the three major network news shows or even the cable news shows on this report? This is an incredible report, and for all intents and purposes, the story is relegated to media oblivion. Oh, yes! Maybe we also now know why so many drones are beginning to appear over the skies of America. One would think that the supposed “anti-Obama” FOX News network would be all over this story. To help enlighten readers, let me quickly point out the sagacious point that Judge Napolitano made in his column, “Since 9/11, the United States government has set up national security systems that function not under the Constitution, not under the Geneva Conventions, not under the rule of law, not under the rules of war, not under federal law, but under a new secret system crafted by the Bush administration.” Ah! There it is! That’s why FOX News ignores the story. G.W. Bush is just as culpable in this monstrous activity as is Barack Obama. In fact, Bush is the one who created this modern American version of Hitler’s Brown Shirts. When it comes to ignoring the US Constitution and assuming dictatorial Hitlerian policies, Republican and Democrat Presidential administrations of late have been virtual Siamese Twins. Now, please read this paragraph carefully (taken from HistoryLearningSite.com): “Germany became a nation of snoops. People were employed in each street, in each building complex, etc. with the sole purpose of keeping an eye on others in their ‘area’ and reporting them to the authorities if they believed that something was amiss. [Sounds like America’s Department of Homeland Security, doesn’t it?] The reputation of the Nazi police and the secret police lead by Himmler was such that no-one wished to cause offence. People kept their thoughts to themselves unless they wished to invite trouble. In this sense, Nazi Germany was a nation run on fear of the government. Hitler had created a one party state within months of being appointed chancellor.” See the report at: http://www.historylearningsite.co.uk/Nazi_Germany_dictatorship.htm And ladies and gentlemen, this is why electing Mitt Romney will change nothing! The same Orwellian, big-government internationalists who are manipulating Barack Obama, and who manipulated G.W. Bush (and Bill Clinton and George H.W. Bush) are manipulating Mitt Romney. Ever since President Ronald Reagan, it hasn’t mattered to a tinker’s dam whether a Republican or Democrat has been in the White House. As Sonny and Cher sang, “The Beat Goes On.” For all intents and purposes, America only has one party at the national level. Pat Buchanan was right when he said that the Elephants and Donkeys inside the Beltway were “two wings of the same bird of prey.” Of course, if the American electorate suddenly got a surge of constitutional electricity and would elect Congressman Ron Paul as President, the story would be much different. Things would change at 1600 Pennsylvania Avenue--not to mention in the United States and the entire world--dramatically. However, with the majority of Americans in the hip pockets of the mainstream media, a Romney/Obama showdown in November seems inevitable (although I am still privately cheering for a Ron Paul coup d’etat at the GOP national convention in Tampa). So, how many people have been or are on this secret kill list--and who are they? With the vast majority of the mainstream media cowering in abject fear of the federal government, and with both major parties in Washington, D.C., walking in lockstep to the drumbeat of an emerging police state, who is left to even sound an alarm of protest? Well, two New York Times reporters did; Judge Andrew Napolitano did; Lew Rockwell did. And now I am, too. Is this the kind of government that most Democrats want? Is this what they wanted when they elected Barack Obama? Is this the kind of government that most Republicans want? Is this what they wanted when they elected G.W. Bush? Anyone who cannot see history being repeated is flat not paying attention! I cannot believe my country has turned into this! Anyway, thank you Judge Napolitano for being a watchman on the wall! *If you appreciate this column and want to help me distribute these editorial opinions to an ever-growing audience, donations may now be made by credit card, check, or Money Order. Use this link: http://chuckbaldwinlive.com/home/?page_id=19 And please visit my web site for past columns and much more at: http://chuckbaldwinlive.com © Chuck Baldwin

Thursday, May 31, 2012

Eating This Could Turn Your Gut into a Living Pesticide Factory

By Dr. Mercola A new generation of insect larvae is eating the roots of genetically engineered corn intended to be resistant to such pests. The failure of Monsanto's genetically modified Bt corn could be the most serious threat ever to a genetically modified crop in the U.S. And the economic impact could be huge. Billions of dollars are at stake, as Bt corn accounts for 65 percent of all corn grown in the US. The strain of corn, engineered to kill the larvae of beetles, such as the corn rootworm, contains a gene copied from an insect-killing bacterium called Bacillus thuringiensis, or Bt. But even though a scientific advisory panel warned the Environmental Protection Agency (EPA) that the threat of insects developing resistance was high, Monsanto argued that the steps necessary to prevent such an occurrence -- which would have entailed less of the corn being planted -- were an unnecessary precaution, and the EPA naively agreed. According to a recent NPR report: "The scientists who called for caution now are saying 'I told you so,' because there are signs that a new strain of resistant rootworms is emerging...[A] committee of experts at the EPA is now recommending that biotech companies put into action, for the first time, a 'remedial action plan' aimed at stopping the spread of such resistant insects ... The EPA's experts also are suggesting that the agency reconsider its approval of a new kind of rootworm-killing corn, which Monsanto calls SmartStax. This new version of Bt corn includes two different Bt genes that are supposed to kill the rootworm in different ways. This should help prevent resistance from emerging, and the EPA is allowing farmers to plant it on up to 95 percent of their corn acres. But if one of those genes is already compromised… such a high percentage of Bt corn could rapidly produce insects that are resistant to the second one, too." There can be little doubt that genetically engineered crops are the most dangerous aspect of modern agriculture. Not only are we seeing rapid emergence of super-weeds resistant to glyphosate, courtesy of Roundup Ready crops, we now also have evidence of emerging Bt-resistant insects. Add to that the emergence of a brand new organism capable of producing disease and infertility in both plants and animals, and a wide variety of evidence showing harm to human health, and the only reasonable expectation one can glean is that humanity as a whole is being seriously threatened by this foolhardy technology. Bt Corn—a Most Dangerous Failure Monsanto's genetically modified "Bt corn" has been equipped with a gene from soil bacteria called Bt (Bacillus thuringiensis), which produces the Bt-toxin. It's a pesticide that breaks open the stomach of certain insects and kills them. This pesticide-producing corn entered the food supply in the late 1990's, and over the past decade, the horror stories have started piling up. And the problem with Bt crops go far beyond the creation of Bt-resistant insects. Monsanto and the EPA swore that the genetically engineered corn would only harm insects. The Bt-toxin produced inside the plant would be completely destroyed in the human digestive system and would not have any impact at all on consumers, they claimed. Alas, they've been proven wrong on that account as well, because not only is Bt corn producing resistant "super-pests," researchers have also found that the Bt-toxin can indeed wreak havoc on human health. Bt-Toxin Now Found in Many People's Blood! Last year, doctors at Sherbrooke University Hospital in Quebec found Bt-toxin in the blood of: 93 percent of pregnant women tested 80 percent of umbilical blood in their babies, and 67 percent of non-pregnant women The study authors speculate that the Bt toxin was likely consumed in the normal diet of the Canadian middle class—which makes sense when you consider that genetically engineered corn is present in the vast majority of all processed foods and drinks in the form of high fructose corn syrup. They also suggest that the toxin may have come from eating meat from animals fed Bt corn, which most livestock raised in confined animal feeding operations (CAFO, or so-called "factory farms") are. These shocking results raise the frightening possibility that eating Bt corn might actually turn your intestinal flora into a sort of "living pesticide factory"… essentially manufacturing Bt-toxin from within your digestive system on a continuing basis. If this hypothesis is correct, is it then also possible that the Bt-toxin might damage the integrity of your digestive tract in the same way it damages insects? Remember, the toxin actually ruptures the stomach of insects, causing them to die. The biotech industry has insisted that the Bt-toxin doesn't bind or interact with the intestinal walls of mammals (which would include humans). But again, there are peer-reviewed published research showing that Bt-toxin does bind with mouse small intestines and with intestinal tissue from rhesus monkeys. Bt-Toxin Linked to Allergies, Auto-Immune Disease, and More If Bt genes are indeed capable of colonizing the bacteria living in the human digestive tract, scientists believe it could reasonably result in: Gastrointestinal problems Autoimmune diseases Food allergies Childhood learning disorders And lo and behold, all of these health problems are indeed on the rise… The discovery of Bt-toxin in human blood is not proof positive of this link, but it certainly raises a warning flag. And there's plenty of other evidence showing that the Bt-toxin produced in GM corn and cotton plants is toxic to humans and mammals and triggers immune system responses. For example, in government-sponsoredresearch in Italy , mice fed Monsanto's Bt corn showed a wide range of immune responses, such as: Elevated IgE and IgG antibodies, which are typically associated with allergies and infections An increase in cytokines, which are associated with allergic and inflammatory responses. The specific cytokines (interleukins) that were found to be elevated are also higher in humans who suffer from a wide range of disorders, from arthritis and inflammatory bowel disease, to MS and cancer Elevated T cells (gamma delta), which are increased in people with asthma, and in children with food allergies, juvenile arthritis, and connective tissue diseases. Rats fed another of Monsanto's Bt corn varieties called MON 863, also experienced an activation of their immune systems, showing higher numbers of basophils, lymphocytes, and white blood cells. These can indicate possible allergies, infections, toxins, and various disease states including cancer. There were also signs of liver- and kidney toxicity. Topical versus Internal Toxins Farmers have used Bt-toxin from soil bacteria as a natural pesticide for years, and biotech companies have therefore claimed that Bt-toxin has a "history of safe use in agriculture." But there's a huge difference between spraying it on plants, where it biodegrades in sunlight and can be carefully washed off, and genetically altering the plant to produce it internally. Bt crops have the Bt-toxin gene built-in, so the toxin cannot be washed off. You simply cannot avoid consuming it. Furthermore, the plant-produced version of the poison is thousands of times more concentrated than the spray. There are also peer-reviewed studies showing that natural Bt-toxin from soil bacteria is not a safe pesticide either: When natural Bt-toxin was fed to mice, they had tissue damage, immune responses as powerful as cholera toxin , and even started reacting to other foods that were formerly harmless. Farm workers exposed to Bt also showed immune responses . The EPA's Bt Plant-Pesticides Risk and Benefits Assessment, created by their expert Scientific Advisory Panel, states that "Bt proteins could act as antigenic and allergenic sources." Do You Know what You're Eating? Did you know that two years ago, the American Academy of Environmental Medicine (AAEM) called on all physicians to prescribe dietswithout genetically modified (GM) foods to all patients? They sure did, although few doctors seem to have gotten the memo. They also called for a moratorium on genetically modified organisms (GMOs), long-term independent studies, and labeling, stating: "Several animal studies indicate serious health risks associated with GM food, including infertility, immune problems, accelerated aging, insulin regulation, and changes in major organs and the gastrointestinal system. …There is more than a casual association between GM foods and adverse health effects. There is causation…" I couldn't agree more. Avoiding genetically engineered foods should be at the top of everyone's list—at least if you want a decent shot at optimal health. The simplest way to avoid genetically engineered (GE) foods is to buy whole, certified organic foods. By definition, foods that are certified organic must never intentionally use GE ingredients, and must be produced without artificial pesticides or fertilizers. Animals must also be reared without the routine use of antibiotics, growth promoters or other drugs. Additionally, grass-fed beef will not have been fed GE corn feed. You can also avoid genetically modified (GM) ingredients in processed foods, if you know what to look for. There are currently eight genetically modified food crops on the market: Soy Sugar from sugar beets Corn Hawaiian papaya Cottonseed (used in vegetable cooking oils) Some varieties of zucchini Canola (canola oil) Crookneck squash This means you should avoid products with corn, soy, canola, and any of their derivatives listed as an ingredient, unless it's labeled USDA 100% Organic. As of late last year, this also includes sweet corn, as Monsanto introduced a brand new genetically engineered sweet corn called Seminis®, which contains not just one but TWO types of Bt-toxin, PLUS the Roundup Ready gene for weed control! So besides containing the insecticide, their toxic Roundup herbicide will also accumulate in the kernels. For a helpful, straightforward guide to shopping Non-GMO, see the Non-GMO Shopping Guide, created by the Institute for Responsible Technology. Why We MUST Insist on Mandatory Labeling of GM Foods Mandatory labeling may be the only way to stop the proliferation of GM foods in the U.S. because while GM seeds are banned in several European countries, in the U.S., certain states are actually passing legislation that protects the use of GM seeds and allows for unabated expansion! At present, no less than 14 states have passed such legislation. Michigan's Senate Bill 777i, if passed, would make that 15. The Michigan bill would prevent anti-GMO laws, and would remove "any authority local governments may have to adopt and enforce ordinances that prohibit or regulate the labeling, sale, storage, transportation, distribution, use, or planting of agricultural, vegetable, flower or forest tree seeds." While legislation like this sounds like crazy nonsense to normal people, such bills are essentially bought and paid for through the millions of dollars Monsanto and other biotech companies spend lobbying the US government each year. In the first quarter of 2011 alone, Monsanto spent $1.4 million on lobbying the federal government -- a drop from a year earlier, when they spent $2.5 million during the same quarter. Their efforts of persuasion are also made infinitely easier by the fact that an ever growing list of former Monsanto employees are now in positions of power within the federal government. Proof Positive that GMO Labeling WILL Change the Food Industry Many don't fully appreciate the strategy of seeking to have genetically engineered foods labeled in California. The belief is that large companies would refuse to have dual labeling; one for California and another for the rest of the country. It would be very expensive and a logistical nightmare. So rather than have two labels, they would simply not carry the product, especially if the new label would be the equivalent of a skull and crossbones. This is why we are so committed to this initiative as victory here will likely eliminate genetically engineered foods from the US. Powerful confirmation of this belief occurred in early 2012 when both Coca-Cola Company and PepsiCo Inc. chose to alter one of their soda ingredients as a result of California's labeling requirements for carcinogensii: "Coca-Cola Co. and PepsiCo Inc. are changing the way they make the caramel coloring used in their sodas as a result of a California law that mandates drinks containing a certain level of carcinogens bear a cancer warning label. The companies said the changes will be expanded nationally to streamline their manufacturing processes. They've already been made for drinks sold in California." This is a PERFECT example of the national impact a California GMO labeling mandate can, and no doubt WILL, have. While California is the only state requiring the label to state that the product contains the offending ingredient, these companies are switching their formula for the entire US market, rather than have two different labels. According to USA Today: "A representative for Coca-Cola, Diana Garza Ciarlante, said the company directed its caramel suppliers to modify their manufacturing processes to reduce the levels of the chemical 4-methylimidazole, which can be formed during the cooking process and as a result may be found in trace amounts in many foods. "While we believe that there is no public health risk that justifies any such change, we did ask our caramel suppliers to take this step so that our products would not be subject to the requirement of a scientifically unfounded warning," Garza-Giarlante said in an email." Educational Sources To learn more about GM foods, I highly recommend the following films and lectures: Hidden Dangers in Kid's Meals Your Milk on Drugs - Just Say No! Everything You Have to Know About Dangerous Genetically Modified Foods Important Action Item: Support California's Ballot Initiative to Label GMO's! In 2007, then-Presidential candidate Obama promised to "immediately" require GM labeling if elected. So far, nothing of the sort has transpired. Fortunately, 24 U.S. states have (as part of their state governance) something called the Initiative Process, where residents can bring to ballot any law they want enacted, as long as it has sufficient support. California has been busy organizing just such a ballot initiative to get mandatory labeling for genetically engineered foods sold in their state. The proposed law will be on the 2012 ballot. Since California is the 8th largest economy in the world, a win for the California Initiative would be a huge step forward, and would affect ingredients and labeling nation-wide. A coalition of consumer, public health and environmental organizations, food companies, and individuals has submitted the California Right to Know Genetically Engineered Food Act to the State Attorney General. Now, they need 800,000 signatures to get the Act on this year's ballot. I urge you to get involved and help in any way you can. Be assured that what happens in California will affect the remainder of the U.S. states, so please support this important state initiative, even if you do not live there! Whether you live in California or not, please donate money to this historic effort Talk to organic producers and stores and ask them to actively support the California Ballot. It may be the only chance we have to label genetically engineered foods. Distribute WIDELY the Non-GMO Shopping Guide to help you identify and avoid foods with GMOs. Look for products (including organic products) that feature the Non-GMO Project Verified Seal to be sure that at-risk ingredients have been tested for GMO content. You can also download the free iPhone application that is available in the iTunes store. You can find it by searching for ShopNoGMO in the applications. For timely updates, please join the Organic Consumers Association on Facebook, or follow them on Twitter. Look for in-depth coverage of the issue at the Institute for Responsible Technology, subscribe to Spilling the Beans, and check out their Facebook or Twitter.

Tuesday, May 15, 2012

Acknowledging the Arrival of Peak Government


Monday, May 14, 2012, 12:38 pm, by charleshughsmith Most informed people are familiar with the concept of Peak Oil, but fewer are aware that we’re also entering the era of Peak Government. The central misconception of Peak Oil -- that it’s not about “running out of oil,” it’s about running out of cheap, easy-to-access oil -- can also be applied to Peak Government: It’s not about government disappearing, it’s about government shrinking. Central government -- the Central State -- has been in the expansion mode for so long that the process of contracting government is completely alien to the nation, to those who work for the State, and to those who are dependent on the State. Thus we have little recent historical experience of Peak Government and few if any conceptual guideposts to help us understand this contraction. Peak Government is not a reflection of government services or the millions of individuals who work in government; it is a reflection of four key systemic forces that drove State expansion are now either declining or reversing. The Four Key Drivers of State Expansion The twin peaks of oil and government are causally linked: central government's great era of expansion has been fueled by abundant, cheap liquid fuels. As economies powered by abundant cheap energy expanded, so did tax revenues. Demographics also aided Central States’ expansion: as the population of working-age citizens grew, so did the work force and the taxes paid by workers and enterprises. The third support of Central State expansion was debt, and more broadly, financialization, which includes debt, leverage, and institutionalized incentives for speculation and misallocation of capital. Not only have Central States benefited from the higher tax revenues generated by speculative bubbles, they now depend on debt to finance their annual spending. In the U.S., roughly one-third of Federal expenditures are borrowed every year. In Japan -- which is further along on this timeline, relative to America -- tax revenues barely cover social security payments and interest on central government debt; all other spending is funded with borrowed money. The fourth dynamic of Central State expansion is the State’s ontological imperative to expand. The State has only one mode of being, expansion. It has no concept of, or mechanisms for, contraction. In my book Resistance, Revolution, Liberation: A Model for Positive Change, I explain this ontological imperative in terms of risk and gain. From the Central State’s point of view, everything outside its control poses a risk. The best way to lower risk is to control everything that can be controlled. Once the potential sources of risk are controlled, then risk can be shifted to others. Put another way, once the State controls the entire economy and society, it can transfer systemic risk to others: to other nations, to taxpayers, etc. In effect, the State’s prime directive is to cut the causal connection between risk and gain so that the State can retain the gain and transfer the risk to others. The separation of risk from gain is called moral hazard, and the key characteristic of moral hazard can be stated very simply: People who are exposed to risk and consequence act very differently than those who are not exposed to risk and consequence. Every time the Central State guarantees something, it disconnects risk from consequence and institutionalizes moral hazard. To take but one example of many, when the Central State guarantees mortgages so lenders and originators cannot lose and the borrower can’t lose more than his modest 3% down payment, then everyone in the chain is encouraged to pursue risky speculations because the State has disconnected risk from the consequence of a potentially large loss. The risk hasn’t vanished; it has simply been transferred to the taxpayers, who absorb the inevitable losses that result when speculation is encouraged. Separating risk from gain inevitably generates systemic instability. The entire credit-housing bubble can be seen as proof of this dynamic. All four of the causal factors itemized above are turning against continued expansion: The key energy source of global transportation, liquid fuel, is no longer cheap and easy to access. The demographics have reversed as the population of State dependents is soaring. Debt has expanded to the point that servicing that debt now threatens the financial stability of the State and its currency. The State’s separation of risk and consequence is generating systemic instability. There are plenty of models of State expansion -- democracy, socialism, communism, theocracy, and so on -- and none for State contraction. This suggests that the down slope of Peak Government will be disorderly and rife with unintended consequences. The Failure of Separation of Powers The predominant Western model of governance assumes, incorrectly, that a “separation of powers” within the State will limit the State’s appetite for control. But rather than limit the State’s expansion, the State’s subsystems -- the institutions of executive power, legislative power and judicial power -- are competing to gain as much control as possible over both the State itself and the nation’s social and financial systems. This competition doesn’t weaken or limit the State; rather, it lends the State a fearsome competitive advantage, as each institution gains power as the State expands. So even though the competition between the three may appear to limit the power of each, in aggregate this competition only increases the State’s expansion as each seeks to outdo the others in reach, influence, and power. Regardless of which institution wins or loses a particular squabble, the State inexorably expands its control and power. And just as inexorably, elites within the State -- systemically protected from the risk created by their policies -- will experience a rising sense of omnipotence as their private power rises in tandem with the State’s expansion. These powers also offer State elites a way to radically lower their own risk and dramatically increase their private gain by leveraging the State’s vast powers to their own private benefit. In other words, not only does each agency and branch of the State seek to expand its reach and power, so, too, does every individual within the State who can leverage the power of the State to protect his/her own individual gain. The State as Protector of Private Gain The Central State is granted unique powers of coercion by its membership (the citizenry) to protect them from the predation of foreign powers, individuals, and subgroups seeking monopoly. The citizens grant the State this extraordinary power to protect their freedom of faith, movement, expression, enterprise and association and to insure that no subgroup can dominate the nation for their private gain. Granting this power to the State creates a risk that the State itself may become predatory. To counter this potential, the State has the self-limiting mechanisms of a separation of powers such that no one institution or agency can dominate the State and thus the nation. But as we have seen, the separation of powers has failed to limit the expansion of the State; rather, it has become a competitive advantage, feeding the State’s expansion. There are no State-based limits on the State’s concentration of wealth and power. There is a great irony in this concentration of power in the State: the power is concentrated to protect the citizenry from predation and exploitation, but that concentration becomes an irresistible attractor for all those seeking to increase their private gain via monopoly, cartels, collusion, fraud, and other forms of predation. The wealth that can be concentrated in private hands is not limited or self-regulated, and so private concentrations of wealth inevitably exceed the ethical threshold of individuals within the State (i.e., their resistance to bribes and self-interest). This structural imbalance leaves the State intrinsically vulnerable to the influence of private wealth. Once this wealth has a foothold of influence within the State, it can then bypass the State’s internal controls and become the financial equivalent of cancer: a blindly self-interested organism bent solely on growth at the expense of the system as a whole. Rather than protect the citizens from exploitation, the State’s primary role becomes protecting the private gains of elites who have taken effective control of the State’s vast powers. The Death Spiral of an Expansive State We can now see that the Central State faces an impossible contradiction: to pursue its primary purpose of protecting the citizenry from predation, it is granted powers that enable it to evade its own self-limiting mechanisms. Private concentrations of wealth gain control over the State’s machinery of governance, and the resulting partnership of private and State elites suppress the mechanisms that were intended to limit private influence over State power. To enhance their own power, these elites increase the State’s reach until it dominates the entire political, social, and economic system. This sets up an inherently self-destructive feedback loop in which the State’s actions to protect its self-serving elites weaken both the State and the nation. The State’s inefficiencies pressure the nation’s output, even as the State increases its share of the national income to maintain its self-serving elites and quiet its potentially restive dependents. The more the State expropriates, the less surplus is left for productive investment, and so the nation’s output continues to decline. This dynamic creates a positive feedback loop (i.e., a death spiral) of higher taxes and lower investment in productive assets. Post Peak-Government Living In Part II: The End of the Free Lunch, we consider what citizens can do to limit their own risk as the Central State contracts. We explain how the State has unfairly used taxpayer-funded subsidies to erode participation commerce and investment at the local level that in ages past provided transparency into the true value of labor. Now that the artificial influence of these subsidies is waning as the State can longer longer afford them, reactivating the infrastructure and processes for enterprise at the community level will be critical to transitioning to a sustainable and more resilient economic model.

Tuesday, April 17, 2012

Federal Reserve Banking System


Source: NESARA News












Now that we know the Federal Reserve is a privately owned, for-profit corporation, a natural question would be: who OWNS this company? Peter Kershaw provides the answer in “Economic Solutions” where he lists the ten primary shareholders in the Federal Reserve banking system.

1) The Rothschild Family – London

2) The Rothschild Family – Berlin

3) The Lazard Brothers – Paris

4) Israel Seiff – Italy

5) Kuhn-Loeb Company – Germany

6) The Warburgs – Amsterdam

7) The Warburgs – Hamburg

8 ) Lehman Brothers – New York

9) Goldman & Sachs – New York

10) The Rockefeller Family – New York

Now I don’t know about you, but something is terribly wrong with this situation. Namely, don’t we live in AMERICA? If so, why are seven of the top ten stockholders located in FOREIGN countries? That’s 70%! To further convey how screwed-up this system is, Jim Marrs provides the following data in his phenomenal book, “Rule By Secrecy.

“He says that the Federal Reserve Bank of New York, which undeniably controls the other eleven Federal Reserve branches, is essentially controlled by two financial institutions:

1) Chase-Manhattan (controlled by the Rockefellers) – 6,389,445 shares – 32.3%

2) Citbank – 4,051,851 shares – 20.5%

Thus, these two entities control nearly 53% of the New York Federal Reserve Bank. Doesn’t that boggle your mind? Now, considering how many trillions of dollars are involved here, and how the bankers are WAY above our “selected” officials in Washington, D.C., do you think the above-listed banks and families have an inordinate amount of say-so in how our country is being run? The answer is blindingly apparent.

Where does the money come from?

We all know that the Federal Reserve CORPORATION prints money – then loans it, at interest, to our government. But wait until you see what a total scam this process is. But before we get to the meat of this issue, let’s remember one thing about the very essence of banking – primarily that money should have some type of standard upon which its value is based. In the case of America, we operate on what is called a “gold standard” (i.e. our money is backed by gold).

So, with that in mind, let’s look at how money is actually created, and at what cost. If the Federal Reserve wants to print 1,000 one-hundred ($100) bills, their total cost for ink, paper, plates, labor, etc. would be approximately $23.00 (according to Davvy Kidd in “Why A Bankrupt America”). Now, if you do the math, the total cost of 10,000 bills would be $230.00 ($.023 x 10,000). But, and here’s the catch – 10,000 $100 bills equals $1,000,000! So, the Federal Reserve can “create” a million dollars, then LEND it to the U.S. Government (with interest) for a total cost of $230.

00! That’s not a bad deal, huh!

The banking industry calls this process “seignorage.” I call it outright THEFT. Why? Well, regardless of the immense profit margin ($1,000,000 for $230), plus the huge interest payments, our government then needs to STEAL the American people’s money to payoff their debts via a Mob-like agency called the IRS. So the bankers steal from the government, then the government turns around and steals from the people. I’m no genius, but who do you think is getting screwed in this process? US – the people at the bottom rung of the ladder.

What’s worse is that – now catch your breath – there’s NO MORE gold left in Fort Knox! It’s all gone. In other words, the GOLD STANDARD that our financial system was based upon is now an illusion. We can’t convert our money into gold — only other currency. The entire underlying basis for our money is now a lie – a sham. The Federal Reserve has become so arrogant that they’ve become a literal MONEY MAKING MACHINE, creating currency out of thin air! So that’s where the Fed gets their money – they literally make it, then lend it to us so they can make even MORE money off of it.

Money As A Religion

The above-detailed process has become so ridiculous that William Grieder, former assistant managing editor of the Washington Post, wrote a book in 1987 entitled, “Secrets of the Temple: How the Federal Reserve Runs the Country” that details how the Controllers have conditioned us to accept this absurd situation.

To modern minds,” he writes, “it seemed bizarre to think of the Federal Reserve as a religious institution. Yet the conspiracy theorists, in their own demented way, were on to something real and significant. The Fed did also function in the realm of religion. Its mysterious powers of money creation, inherited from priestly forebears, shielded a complex bundle of social and psychological meanings. With its own form of secret incantation, the Federal Reserve presided over awesome social ritual, transactions so powerful and frightening they seemed to lie beyond common understanding.

Mr. Grieder continues, “Above all, money was a function of faith. It required implicit and universal social consent that was indeed mysterious. To create money and use it, each one must believe, and everyone must believe. Only then did worthless pieces of paper take on value.

Do you get it? MONEY is an ILLUSION! Why? Because the gold standard upon which our money is supposed to be based has been eliminated. There’s no more gold in Fort Knox. It’s all GONE! Now, money really IS only paper!!! In the past, money was supposed to represent something of tangible value.

Now it’s simply paper!

Taken one step further, many of us don’t even use paper money any more! Why? Well, here’s a scenario. Many places of employment directly deposit their employee’s paychecks into the bank. Once the money is there, when bill time comes around, the person in question can write out a stack of checks to pay them. Plus, when they need gasoline they use a credit card; and groceries a debit card. If this person goes out for dinner on Friday night, they can charge the tab on their diner’s card. But what about the tip? They simply scribble in the amount at the bottom of the check. So far, the person hasn’t spent a single dollar bill. Plus, if you bring electronic banking into the picture, we’ve virtually eliminated the use for money.

And, God forbid, what happens when encoded microchips are implanted into the backs of our hand?

In essence, money has become nothing more than an illusion – an electronic figure or amount on a computer screen. That’s it! As time goes on, we have an increasing tendency toward being sucked into this Wizard of Oz vortex of unreality. Think about it. Americans as a whole are carrying more personal debt than in any other time in history. Plus our government keeps going further and further into the hole, with no hope of ever crawling out. But we have less and less actual MONEY! We’re being enslaved by the debt of electronic blips on a computer screen! And 70% of the banks that control this debt via the Federal Reserve exist in foreign countries! What in God’s name is going on? As author William Bramley says, “The result of this whole system is MASSIVE debt at every level of society.

We’re getting screwed in a sickening way, folks, and the people doing it are demented magician-priests that use the ILLUSION of money as their control device. And I hate to say it, but if we allow things to keep going as they are, the situation will only get worse. Our only hope … ONLY HOPE … is to immediately take drastic action and remedy this crime.

Aaron Russo on The Federal Reserve & How to Shut it Down

let the Truth be known..
let’s abolish the federal reserve, please
please

Historical Outline

1st: Martial Law is declared by President Lincoln on April 24th, 1863, with General Orders No. 100; under martial law authority, Congress and President Lincoln institute continuous martial law by ordering the states (people) either conscribe troops and or provide money in support of the North or be recognized as enemies of the nation; this martial law Act of Congress is still in effect today. This martial law authority gives the President (with or without Congress) the dictatorial authority to do anything that can be done by government in accord with the Constitution of the United States of America. This conscription act remains in effect to this very day and is the foundation of Presidential Executive Orders authority; it was magnified in 1917 with The Trading with the Enemy Act (Public Law 65-91, 65th Congress, Session I, Chapters 105, 106, October 6, 1917). and again in 1933 with the Emergency War Powers Act, which is ratified and enhanced almost every year to this date by Congress. Today these Acts address the people of the United States themselves as their enemy.

2nd: The District of Columbia Organic Act of 1871 created a “municipal corporation” to govern the District of Columbia. Considering the fact that the municipal government itself was incorporated in 1808, an “Organic Act” (first Act) using the term “municipal corporation” in 1871 can only mean a private corporation owned by the municipality. Hereinafter we will call that private corporation, “Corp. U.S.” By consistent usage, Corp. U.S. trademarked the name, “United States Government” referring to themselves. The District of Columbia Organic Act of 1871 places Congress in control (like a corporate board) and gives the purpose of the act to form a governing body over the municipality; this allowed Congress to direct the business needs of the government under the existent martial law and provided them with corporate abilities they would not otherwise have. This was done under the constitutional authority for Congress to pass any law within the ten mile square of the District of Columbia. Follow this link to see the effect of the District of Columbia Act of 1871.

3rd: In said Act, Corp. U.S. adopted their own constitution (United States Constitution), which was identical to the national Constitution (Constitution of the United States of America) except that it was missing the national constitution’s 13th Amendment and the national constitution’s 14th, 15th and 16th amendments are respectively numbered 13th, 14th and 15th amendments in the Corp. U.S. Constitution. At this point take special notice and remember this Corp. U.S. method of adopting their own Constitution, they will add to it in the same manner in 1913.

4th: Corp. U.S. began to generate debts via bonds etc., which came due in 1912, but they could not pay their debts so the 7 families that bought up the bonds demanded payment and Corp. U.S. could not pay. Said families settled the debt for the payments of all of Corp. U.S.’ assets and for all of the assets of the Treasury of the United States of America.

5th: As 1913 began, Corp. U.S. had no funds to carry out the necessary business needs of the government so they went to said families and asked if they could borrow some money. The families said no (Corp. U.S. had already demonstrated that they would not repay their debts in full). The families had foreseen this situation and had the year before finalized the creation of a private corporation of the name “Federal Reserve Bank”. Corp. U.S. formed a relationship with the Federal Reserve Bank whereby they could transact their business via note rather than with money. Notice that this relationship was one made between two private corporations and did not involve government; that is where most people error in understanding the Federal Reserve Bank system—again it has no government relation at all. The private contracts that set the whole system up even recognize that if anything therein proposed is found illegal or impossible to perform it is excluded from the agreements and the remaining elements remain in full force and effect.

6th: Almost simultaneously with the last fact (also in 1913), Corp. U.S. adopts (as if ratified) their own 16th amendment. Tax protesters challenge the IRS tax collection system based on this fact, however when we remember that Corp. U.S. originally created their constitution by simply drafting it and adopting it; there is no difference between that adoption and this—such is the nature of corporate enactments—when the corporate board (Congress) tells the secretary to enter the amendment as ratified (even thought the States had not ratified it) the Se3cretary was instructed that the Representatives word alone was sufficient for ratification. You must also note, this amendment has nothing to do with our nation, with our people or with our national Constitution, which already had its own 16th amendment. The Supreme Court (in BRUSHABER v. UNION PACIFIC R. CO., 240 U.S. 1 (1916)) ruled the 16th amendment did nothing that was not already done other than to make plain and clear the right of the United States (Corp. U.S.) to tax corporations and government employees. We agree, considering that they were created under the authority of Corp. U.S.

7th: Next (also 1913) Corp. U.S., through Congress, adopts (as if ratified) its 17th amendment. This amendment is not only not ratified, it is not constitutional; the nation’s Constitution forbids Congress from even discussing the matter of where Senators are elected, which is the subject matter of this amendment; therefore they cannot pass such and Act and then of their own volition, order it entered as ratified. According to the United States Supreme Court, for Congress to propose such an amendment they would first have to pass an amendment that gave them the authority to discuss the matter.

8th: Accordingly, in 1914, the Freshman class and all Senators that successfully ran for reelection in 1913 by popular vote were seated in Corp. U.S. Senate capacity only; their respective seats from their States remained vacant because neither the State Senates nor the State Governors appointed new Senators to replace them as is still required by the national Constitution for placement of a national Senator.

9th: In 1916, President Wilson is reelected by the Electoral College but their election is required to be confirmed by the constitutionally set Senate; where the new Corp. U.S. only Senators were allowed to participate in the Electoral College vote confirmation the only authority that could possibly have been used for electoral confirmation was corporate only. Therefore, President Wilson was not confirmed into office for his second term as President of the United States of America and was only seated in the Corp. U.S. Presidential capacity. Therefore the original jurisdiction government’s seats were vacated because the people didn’t seat any original jurisdiction government officers. It is important to note here that President Wilson retained his capacity as Commander in Chief of the military. Many people wonder about this fact imagining that such a capacity is bound to the President of the nation; however, When John Adams was President he assigned George Washington to the capacity of Commander in Chief of the military in preparation for an impending war with France. During this period, Mr. Adams became quite concerned because Mr. Washington became quite ill and passed on his acting military authority through his lead General Mr. Hamilton and Mr. Adams was concerned that if war did break out Mr. Hamilton would use that authority to create a military dictatorship of the nation. Mr. Adams averted the war through diplomacy and the title of Commander in Chief was returned to him.

(See: John Adams, by David McCullough, this book covers Mr. Adams concerns over this matter quite well. Mr. Adams was a fascinating man.)

10th: In 1917, Corp. U.S. enters W.W. I and passes their Trading with the Enemies Act.

11th: In 1933, Corp. U.S. is bankrupt, they force a banking holiday to exchange money backed Federal Reserve Notes with “legal tender” Federal Reserve Notes the Trading with the Enemies Act is adjusted to recognize the people of the United States as enemies of Corp. U.S.

12th: Some time after 1935, you ask Social Security Administration for a relationship with their program. With the express purpose of generating Beneficiary funds to United States General Trust Fund (GTF) the Social Security Administration creates an entity with a name (that sounds like your name but is spelled with all capital letters) and an account number (Social Security number). They give you the Social Security card and let you know that the card does not belong to you but you are to hold it for them until they want it back. If you are willing to accept that responsibility over the card you activate the card by signing it, which gives you the ability to act as the fiduciary for the cards actual owner Corp. U.S. and you can use the card’s name and number to thus transact business relations for the card’s actual owner. You are also to note that though the card verifies its agency (you as the single person with authority to control the entity so created) it is not for use as identification. On review: notice the Social Security Administration was the creator of the entity, they offered you the opportunity to serve its Trustee capacity (by lending it actual consciousness and physical capacity), they gave you something (the card) that does not belong to you to hold in trust and they reserved the actual owner of the thing (Corp. U.S.) as the beneficiary of the entity—by definition, this only describes the creation and existence of a Trust. More importantly: the name they gave this Trust is not your name, the number they gave the Trust is not your number and your lending actual consciousness and physical capacity to this Trust’s Trustee capacity does not limit you or your capacity to separately act in your natural sovereign capacity in any way—what you do, when you do it and how you do it is still totally up to you.

13th: In 1944, under the Bretton Woods Agreement, Corp. U.S. is quit claimed to the International Monetary Fund, and becomes a foreign controlled private corporation.

14th: In 1962, considering the states were forced to carry out their business dealings in terms of Federal Reserve Notes (foreign notes), which is forbidden in the national and State constitutions, out of the necessity the states began protecting themselves from the people by forming corporations like Corp. U.S. Accordingly, those newly formed corporate state administrations began adopting Corp. U.S. suggested uniform codes and licensing structures that allowed better and more powerful control over the people, which thing the original jurisdiction governments of this nation had no capacity to do. Our Constitutions secure that the governments do not govern the people rather they govern themselves in accord with the limits of Law. The people govern themselves. Such is the foundational nature of our Constitutional Republic.

15th: By 1971, every State government in the union of States had formed such private corporations (Corp. State), in accord with the IMF admonition, and the people ceased to seat original jurisdiction government officials in their State government seats.

Now, having stated these historical facts, we ask you not to believe us, but rather prove these facts for yourself. We then ask you to contact us and share your discovery with us.

When you find there is no error in this historical outline, then remember these simple facts and let no one dissuade you from the truth.

The Bottom Line: when you speak about these private foreign corporations remember that is what they are and stop calling them government.”

hope … ONLY HOPE … is to immediately take drastic action and remedy this crime.