Sunday, May 31, 2009

The Inflation Tax

Lew Rockwell
Article by Ron Paul

All government spending represents a tax. The inflation tax, while largely ignored, hurts middle-class and low-income Americans the most. Simply put, printing money to pay for federal spending dilutes the value of the dollar, which causes higher prices for goods and services. Inflation may be an indirect tax, but it is very real – the individuals who suffer most from cost of living increases certainly pay a “tax.”

Unfortunately no one in Washington, especially those who defend the poor and the middle class, cares about this subject. Instead, all we hear is that tax cuts for the rich are the source of every economic ill in the country. Anyone truly concerned about the middle class suffering from falling real wages, under-employment, a rising cost of living, and a decreasing standard of living should pay a lot more attention to monetary policy. Federal spending, deficits, and Federal Reserve mischief hurt the poor while transferring wealth to the already rich. This is the real problem, and raising taxes on those who produce wealth will only make conditions worse.

Borrowing money to cut the deficit is only marginally better than raising taxes. It may delay the pain for a while, but the cost of government eventually must be paid. Federal borrowing means the cost of interest is added, shifting the burden to a different group than those who benefited and possibly even to another generation. Eventually borrowing is always paid for through taxation.

The third option is for the Federal Reserve to create credit to pay the bills Congress runs up. Nobody objects, and most Members hope that deficits don’t really matter if the Fed accommodates Congress by creating more money. Besides, interest payments to the Fed are lower than they would be if funds were borrowed from the public, and payments can be delayed indefinitely merely by creating more credit out of thin air to buy U.S. treasuries. No need to soak the rich. A good deal, it seems, for everyone. But is it?

The “tax” is paid when prices rise as the result of a depreciating dollar. Savers and those living on fixed or low incomes are hardest hit as the cost of living rises. Low- and middle-incomes families suffer the most as they struggle to make ends meet while wealth is literally transferred from the middle class to the wealthy. Government officials stick to their claim that no significant inflation exists, even as certain necessary costs are skyrocketing and incomes are stagnating.

The transfer of wealth comes as savers and fixed-income families lose purchasing power, large banks benefit, and corporations receive plush contracts from the government – as is the case with military contractors. These companies use the newly printed money before it circulates, while the middle class is forced to accept it at face value later on. This becomes a huge hidden tax on the middle class, many of whom never object to government spending in hopes that the political promises will be fulfilled and they will receive some of the goodies. But surprise – it doesn’t happen. The result instead is higher prices for prescription drugs, energy, and other necessities. The freebies never come.

The moral of the story is that spending is always a tax. The inflation tax, though hidden, only makes things worse. Taxing, borrowing, and inflating to satisfy wealth transfers from the middle class to the rich in an effort to pay for profligate government spending, can never make a nation wealthier. But it certainly can make it poorer.

Obama Set to Create A Cybersecurity Czar With Broad Mandate

The Russian Czars were a bunch of homicidal lunatics! We can expect that American Cybersecurity Czar will be just as tyrannical. This dictatorship will mean the end of free speech on the internet and a parade of senseless prosecutions! Again, the Washington Post sugarcoats the face of overt government tyranny. Read the full article here:

Feds Discusses 25% U.S. Sales Tax On Everything !!!

Earlier in the week Neil Cavuto and Glen Beck reported that the feds was considering passing a 25% national sales tax, a.k.a. the VAT tax. Now the Washington Post is reporting the same. This means that you and I will be paying 25% more for everything we buy -- including food and clothing! This is a highly regressive tax because anyone living paycheck-to-paycheck will be driven into poverty while the rich savers will only pay this consumption tax on a fraction of their earnings!

Before we even consider this VAT disaster, why don't we just start taxing the rich for Social Security at 100% of their earnings instead of capping the SSI tax at 92K?

The fact of the matter is that Washington has openly declared WAR against America's poor and working class. Until the sheeple can actually wrap their fluoride warped minds around this simple concept, we'll continue to be taxed and devalued into poverty and feudalism.

Read the full Washington Post article right here:

Saturday, May 30, 2009

VIDEO: USA using Patriot Act against its own citizens

This an old trick used by tyrants for centuries. Draconian legislation is passed to supposedly protect the citizens from a bogus outside threat. Than the draconian police state is turned loose on the unsuspecting domestic population. The fact of the matter is that the Patriot Act has been used against thousands of innocent American citizens and almost never against "domestic terrorists" - who are about as rare as Bigfoot and the Boogy Man.

This is the very definition of hard-core tyranny !!!

VIDEO: Oath Keeper Sheriff Richard Mack Speaks Truth To Tyranny
Oath Keeper Sheriff Richard Mack interview after Oath Keepers muster on Lexington Green, April 19,2009.

VISEO: More Proof That 9/11 Was An Inside Job

Monday, May 25, 2009

VIDEO: Pushes For Global Genocide To Save The Planet From Bogus Global Warming Scare

Here's what has to say about this video:

"We can begin to voluntarily limit family size and start reducing world population now. Population reduction is an essential part of minimizing climate change, famine, poverty and ecosystem collapse. It is time we acknowledge population's role in the sustainability equation and begin to implement truly sustainable population policies.

We produced this PSA specifically to submit to ABC News for their network television special, Earth 2100.

Please visit for more information about helping the world kick the habit of growth addiction."

This is pure bullshit! These criminals do a real nice job of sugar coating their brutal and tyrannical intentions to forcibly and drastically reduce western civilization's access to food, water and energy in order to save the planet from the non-existent threat of climate change. These bastards might seem green on the outside but they're dead red on the inside! This is just a cleverly disguised excuse to force hard-core communism down the throats of America and Europe. This is the very definition of "neo-serfdom" and these policies will bring in a new Dark Age of disease and famine!

So how do we reduce the world's population from today's 6.5 billion people to Growthbusters admitted target number of 1.5 billion?

Well, the plan has already been funded and partially implemented by American and British banks. In fact, the human extermination plan, funded by western banks, has been under way for many decades in places like China (the one child policy), Russia (neo-serfdom, A.K.A. communism); as well as in places like America, England, Europe, Scandinavia,Australia and Japan. In fact, "feminism", "woman's liberation" and "reproductive rights" was the Trojan Horse that the globalist used to impose population reduction on western civilization.

The ravages of "woman's liberation" speak for themselves. Every nation that has politically promoted family break-up and forced their women into the workforce is dying off at a rapid rate. When one considers that a nation requires a 2.1 birth rate just to sustain it's population, these numbers are truly staggering!:

Russia now has a 1.1 birth rate.
White America is at 1.6
England is below 1.5
Germany is at 1.3
France is at 1.4
Italy is at 1.2
The Czech Republic is at 1.2
Romania is at 1.2
Spain is at 1.07

These statistics show that eugenics operations disguised as "woman's liberation" is already bringing about the extinction of western civilization. If these dismal birth rate numbers already guarantee that white people of America, Canada and Europe will be just another minority in the lands their ancestors dominated by the year 2100 AD.

However, this alarming rate of population decline isn't good enough for the globalists. In fact, recently Gordon Brown called for a 50% reduction in Great Brittan's population over the next 20 years! These guys are absolute loony tunes. They should be locked in a padded cell but instead these lunatics are actually deciding the fate of the world! Are you scared yet?

So how will the globalist pull off this massive culling of the world's population in time to save the planet from being destroyed by the ravages of man-made climate change? Who knows? However, these criminals certainly are crazy enough to either start a major nuclear war or to release a bio-weapon on the world's population. Either way, we're in big trouble!

The fact of the matter is that "liberated women" have been the "useful idiots" that the globalists have chosen to complete the job of destroying America and bringing in neo-serfdom and the New World Order. That's why it shouldn't surprise you to see a very attractive young women narrating this demented piece of lies and dis-info.

Just watch this disgusting propaganda piece and you'll see exactly what I'm talking about:

Thursday, May 21, 2009

VIDEO: Ron Paul On The Coming Implosion Of The Bankrupt American Empire

Cap-and-Trade Delusions

Proponents need to stop pretending cap-and-trade will cost nothing and create tons of jobs.

Ronald Bailey
May 19, 2009

Cap-and-trade will be a disaster of horrendous proportions for the US economy. Can anybody here say "crony capitalism"? How about "corporate fascism"? Of we can dispense with the niceties and just call cap-and-trade what it really really is: It's called hard-core "serfdom", or "neo-serfdom". The whole "climate change" is supported by a stack of lies, junk science and propaganda. Welcome to the New World Order of "rolling blackouts" and the $1,500 per month average household electric bill! This is nothing less than a war of extermination, waged by the global elites, against the world's poor and middle class. Communism is definitely on the march in America 2009. You can read the whole story right here:

Tuesday, May 19, 2009

International Forecaster: Get Rid of The Fed And Purge The System

Bob Chapman
May 13, 2009

The Secrets of the Federal Reserve: The Federal Reserve Act was legislated in 1913 to end recessions, panics and depression. Over that almost 100-year period they have been eminently no more successful then their predecessors. The Fed is a private corporation, which guides US monetary policy. Its staff is from Wall Street, banking, and transnational conglomerates and occasionally from academia. Of the 12 Federal Reserve banks the New York bank is the most powerful. The staffing of the Fed at the least is incestuous, because the member banks take part in the staffing, as they filter to the Fed what actions they should take. That is done by the FOMC, The Federal Open Market Committee. As a further example the recent stress test done by the Fed was done on many of their owners. Sadly the public is unaware of this and even business majors and those with business masters degrees do not know that the Fed is privately owned or what they actually do. For those of you who would like to get a better understanding read G. Edward Griffith's, "Creature from Jekyll Island" and the secrets of the Federal Reserve" by Eustace Mullins.

Recently we discovered that $101.4 billion was originally secretly funneled through AIG to AIG counterparties - parties that were owed these sums by AIG, which had not collateralized derivative contracts. That is like writing insurance and having no collateral reserves set aside for losing events. The Federal Reserve in their wisdom paid off AIG's debt with what eventually will be taxpayer debt. This is wrong and it should not have been done secretly. When demanded by a Federal Judge to reveal to whom these monies were paid and under what circumstances, the Fed said it would harm their reputations and it was a "state secret."

The biggest gun in the Fed arsenal is the New York Fed. The recently appointed Secretary of the Treasury Timothy Geithner was the NY Fed's previous governor. Mr. Geithner had worked in government previously and was in part responsible for the Asian financial disaster in 1997-1998. He is also a Goldman Sachs alumnus. He is part of a never-ending exchange of the denizens of Wall Street and banking being appointed to government positions. In fact Wall Street and banking have been running our government for a long time. Many say for too long.

This kind of relationship makes government a tool of major financial interests and it breeds corruption, as we just witnessed in the case of Stephen Friedman, formerly of Goldman Sachs, and until he resigned last week, for having purchased some Goldman Sachs stock, was Chairman of the NY federal Reserve, the position Mr. Geithner had held before him. This raises the fundamental question of appointment and corruption. Never mind the other issues the Fed is involved in. this is America's most powerful financial institution and it is run by corrupt and perhaps incompetent people. The NY fed has a very special position, because it is actively running markets every day via the 21 dealers it uses to manipulate and uses these markets. This is part of the program never spoken of that exists to assist the "Working Group on Financial Markets, which manipulates markets 24/7, under an Executive Order signed in August 1988 by then President Ronald Reagan. This was executed to protect against market failures such that had taken place the previous October. The order was for emergencies. The Treasury, the Fed, Wall Street and banking have distorted its original intent. The Fed also sets interest rates and regulates the issuance of money and credit. Thus the Fed holds a pivotal role in our financial well-being. They also are to insure the soundness and stability of the banking system. If our banking system breaks down it is the fault of the Fed. When that happens it should not be the province of the Fed to commit trillions of dollars of taxpayer money to bail out its own owners.

You can get an idea of the incestuous nature of the Fed and Wall Street in looking at the select committee that not that long ago picked Timothy Geithner to head the NY Fed. Hank Greenberg defrocked former Chairman of AIG, who for some reason was never criminally prosecuted in the scandal; John Whitehead a former Chairman of Goldman Sachs; Peter Peterson, a former Chairman of Lehman Bros.; and Walter Shipley, a former Chairman of Chase Manhattan, now with JP Morgan Chase. We wonder why the media never questions these kinds of connections all of which are tied together by the Council on Foreign Relations.

Then there is the composition of the NY Fed board on which six board members are public representatives. We do not see any common business people on this board. They are all very wealthy New Yorkers, who are all connected to one another. There have been occasionally members of labor and academia, but they can only be considered tokens. It is very definitely an insiders club.

This means the Fed's real consideration is the maximizing of profits for banking, Wall Street, insurance and real estate. This goal of almost 100 years has made these individuals and their families' mega-rich. Competent or incompetent they always win. They have information and intelligence no one else has and you can be sure their inner circle has the same privileged information. As usual they are essentially unregulated, which gives the Fed an additional advantage. The lack of banking oversight of recent years has brought our entire financial system into insolvency. We do not know how you could call it anything else when most major banks, brokerage houses, some insurance companies and other lenders are simply broke. The Fed, and particularly the NY Fed, has been complicit in banks and brokerage houses using leverage of more than 50 times assets. In some cases such as JP Morgan Chase the figures are much higher. In fractional banking 8 to 10 times is considered appropriate. This is the biggest bailout of poorly managed corrupt banks in history. This failure is far greater than the failure of the Lombard System in Venice in 1348, the year of the great bubonic plague that swept Europe and killed 50% of its inhabitants. These elitists have brought the world economy to its knees. It is ironic, but true to insider dealing, that not one CEO or senior executive has been fired, as trillions of dollars have been lost.

That said this is the perfect segway to bring to your attention a bill calling for the Comptroller General of the US to audit the private Federal Reserve. At last report 124 members of the House have joined Rep. Ron Paul's bill HR 1207, as co-sponsors, to his Federal Reserve Transparency Act of 2009. Both the Fed's Board of Governors and the Federal Reserve Banks would be required to report to Congress before the end of 2010. This could be the most important bill in modern American history and could lead to our financial and economic recovery. When the Congress sees what the Fed has done they might just abolish it, which is really the solution. As Rep. Paul says, "Congress should reassert its constitutional authority over monetary policy." The Constitution gives Congress, not the private Federal Reserve, "the Authority to coin money and regulate the value of the currency." "The Fed has presided over the near-complete destruction of the US dollar," says Rep. Paul. "Since 1913 the dollar has lost over 95% of its purchasing power, aided and abetted by the Federal Reserve's loose money policy." "How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation?" Only big-spending politicians and politically favored bankers benefit from inflation," he said. "Since its inception, the Fed has always operated in the shadows, without sufficient scrutiny or oversight of its operations."

The Fed can enter into agreements with foreign central banks and foreign governments, and the GAO's prohibited from auditing or even seeing these agreements. There are no enforcement powers over the Fed. The Fed's funding facilities including the Dealer Credit Facility, Term Securities Lending Facility, and the Term Asset-Backed Securities Lending Facility should be subject to congressional oversight.

Every problem we have had in our economy from the Fed's conception and passage can be directly traced to Federal Reserve policy.

Legislation should be passed to abolish the Fed and that the OMB, the Office of Management and Budget liquidate Fed assets to insure a quick transfer of their functions to the Treasury.

HR 1207 is now in the House Committee of Financial Reserves and has been there for 3 months.

This could be the most important legislation ever submitted due to the financial conditions in America at this time.

In the Senate, Sen. Bernard Sanders (I-VT) has submitted a similar bill, which has been in the Senate Banking, Housing, and Urban Affairs Committee for 2 months.

As Rep. Paul says, "auditing the Fed is only the first step towards exposing this antiquated insider-run creature to the powerful forces of free-market competition. Once there are viable alternatives to the monopolistic fiat dollar, the Federal Reserve will have to become honest and transparent if it wants to remain in business."

Contact everyone in Congress and let him or her know how you feel about this issue as soon as possible.

As Joseph Schummpeter argues that monetary measures do not allow policymakers to eliminate economic depression, only to delay it under penalty of more severity in the future. In a market economy, economic depressions are painful but unavoidably recurring. Counter cyclical monetary measures to provide more money and credit to keep ill-timed investment on a high level in a depression are not creative destruction, but positive destruction, and such measures will ultimately be detrimental to the general welfare. This is what we've been preaching for some time.

Unemployment is a natural extension for stabilizing production and consumption, and its solution cannot be implemented by holding up asset prices in a depressed market economy. Unemployment is usually reduced by deficit-financing and high wages. Today that is not easy with a $2 trillion deficit, rising interest rates, monetization and the insane creation of money and credit. Plus, how can you maintain wages, or raise them, with an army of illegal aliens working for next to nothing and offshoring and outsourcing still going at full tilt? Monetarist measures cannot hold up asset prices with today's problems, which are the worst since the early 1870s.

Looking back Herbert Hoover was wrong in starting off the Socialist-Fascist era that began the 1930's Great Depression. Franklin Delano Roosevelt carried out that program and it was a failure. America was saved by war at a terrible price. Andrew Mellon was right in advocating that government must keep its hands off and let the slump liquidate itself. Purge the rottenness out of the system. Mr. Mellon said liquidate labor, stocks, farmers and real estate. No more high living, people will work harder and lead a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.

The economics of monetarism are nothing more than a formula promulgated to save the financial sector and not the country, by using an elitist trickle down theory, which as recent as the 1980s had been proven unworkable. Bail out the rich on Wall Street, the bankers and insurance companies and let the poor and working poor fend for themselves. This is class economics and this is what turns the masses toward socialism. Bankers, who caused the problem, are bailed out by the masses, and the public is left to drown on their own. We are told the bankers and Wall Street must be saved or we'll have no economy. We call this the myth of saving the criminals.

Under a Federal Reserve System the Fed has in private hands unlimited state power to create money and credit backed by the full faith and credit of the American people, which denies those people the rights of sovereignty.

Via the Fed and via Executive Order and the "Working Group on Financial Markets" we allow the Fed and the Treasury to manipulate our markets. Thus our financial elite grow richer and richer, and worse yet even professionals do not know what is going on, never mind the public. The creation of money and credit is effected in such a way that the financial sector is protected and the burden of loss of purchasing power is cast upon American workers. The capitalists do business as usual. Such pursuits have often ended in revolution. The fruits of low wages in America, a result of free trade, globalization, offshoring and outsourcing, have taken their toll. The result is more than two years of recession and now more than three months of depression. The working poor cannot afford to buy what they produce and they cannot pay the debt cast upon them by Wall Street and the banking establishment. There are no free markets. The markets are what these people want them to be. Today they feed their own debt bubble hoping, hope against hope they can bail out the system again.

These miscreatants, in what is called a shadow banking system securitized mortgages and other debt by fraud via a corrupt rating system worldwide monetizing their liabilities and buried thousands of professionals worldwide. This unpayable debt, now lost, along with derivatives present problems that are really just beginning to be addressed. All this is done with little transparency in order for these institutions, guided by the Fed, to dump their financial risks.

There you have it. A manmade disaster created by the Federal Reserve, banking and Wall Street, and these are the same corrupt group who our government has chosen to rectify the problem. Their answer is to take the funds from the public to cover their losses, be it by inflation or taxes. The answer is get rid of the Fed and purge the system once and for all.

Wednesday, May 13, 2009

VIDEO: President Obama's Deferral Proposal: Hamstringing American Companies, Reducing American Jobs

President Obama's proposal to severely restrict "deferral" will cause a significant tax increase on American companies trying to earn market share in other nations. For all intents and purposes, the White House plan is protectionism, but the target is American companies rather than their foreign rivals. This Center for Freedom and Prosperity Foundation video explains why this misguided policy will reduce exports from America and reduce jobs in America. For more information:

VIDEO: John Stossel's "You Can't Even Talk About It"

John Stossel's 20/20 special "You Can't Even Talk About It," first aired on May 8, 2009.

Sunday, May 10, 2009

The Nature of the Current Financial Crisis: The System is designed to exert Total Control over the Lives of Individuals

Richard C. Cook
Global Research,
Sunday, May 10, 2009

What impresses me in the current financial crisis is the near-total failure of so-called progressives to appreciate the magnitude of what is going on or the level of intelligence behind it. How many will say, for instance, that the crash was deliberately engineered by the creation, then destruction, of the investment bubbles of the last decade?

When the financial system creates bubbles it drives up the cost of assets far beyond their true value in producing or storing wealth. When the bubbles burst the value of the assets plummets. Those with ready cash then buy them up on the cheap. When the dust settles more wealth has been concentrated in fewer hands. The rich get richer, and ordinary people are left in a deeper condition of indebtedness, poverty, and pressure to perform to the liking of the financial masters.

Progressives think the system needs to be “reformed.” Maybe the banking system needs to be re-regulated or even nationalized. Maybe it should be possible for families facing loss of their homes to get a lower monthly payment from a bankruptcy court. Maybe the government instead of the private sector should administer student loans.

What we fail to acknowledge is that the system itself is totalitarian. This means that it is designed to exert total control over the lives of individuals. We are accustomed to use this label when thinking of anachronisms of history like communism or fascism. We do not understand that globalist finance capitalism and the government which protects, enables, or even regulates it are also totalitarian.

What has happened in the last year as the financial system has seemingly gone belly-up, and is coming back only through massive government bailouts, is part of a pattern that has been around for decades if not centuries. How the controllers work was laid out in 1967 when Dial Press published a leaked copy of The Report from Iron Mountain. This was a study put together by a team of academics and analysts who met at the underground facility in New York that was home to the Hudson Institute.

The report began by identifying war as the central organizing principle of society. It stated, “War itself is the basic social system, within which other secondary modes of social organization conflict or conspire. It is the system which has governed most human societies of record, as it is today.”

The report said that, “The basic authority of a modern state over its people resides in its war powers.” It said that any failure of will by the ruling class could lead to “actual disestablishment of military institutions.” The effect on the system would be, the report said, “catastrophic.”

The appearance of the report caused a sensation when it came out at the onset of the Vietnam War. Officials within the government had no comment, and the report faded into history. But certain of its sections fit the situation in 2009 precisely.

This is because the report outlined the ways the civilian population of a developed nation could be controlled even in the absence of a large-scale war that disrupted their daily lives. One of these ways was defined as follows: “A…possible surrogate for the control of potential enemies of society is the reintroduction, in some form consistent with modern technology and political process, of slavery….The development of a sophisticated form of slavery may be an absolute prerequisite for social control….” (Cited in Rule by Secrecy by Jim Marrs, 2000.)

We see the development of such a “sophisticated form of slavery” today. What else can a system be called that subjects the population to skyrocketing personal and household debt, a widening gap between the rich and everyone else, constant warfare justified as necessary to fight “terrorism,” erosion of personal freedoms, constantly expanding power allocated to the military and police, pervasive electronic eavesdropping, complete lack of accountability by politicians for their dishonesty and crimes, a mass media devoted solely to establishment propaganda, etc.

None of this seems to be diminishing under the Barack Obama administration. Even the economic recovery Obama is attempting to engineer through massive Keynesian deficit spending is expected by economists to be another “jobless” one like that of 2002-2005. Of course the unemployed or those who fear unemployment are easy to control. And the permanent series of Asian land wars George W. Bush instigated for control of resources and geopolitical leverage against Russia and China continue unabated.

None of this is accidental. As The Report from Iron Mountain made clear four decades ago, it’s what has been planned all along.

VIDEO: And The Criminal Looting Continues...

The Federal Reserve Inspector General was recently unable to tell Rep. Alan Grayson what goes on at the Federal Reserve and who has been receiving the trillions of dollars they created. This is one reason why we must audit the Federal Reserve and this is exactly why we must get HR-1207 passed!!! Check out this disgraceful dog and pony show right here:

For more information, you can read the full article right here:

VIDEO: Sane Financial Advice In A Crashing Economy

You might want to do as I have done by signing up for this FREE financial newsletter. Click the link right here:

Saturday, May 9, 2009

The Financial Intelligence Report
Contributing Editors: Bob Rinear, Robert F., Ted C., Bryce I.

The insanity continues at a pace that takes my breath away. Consider the dichotomies of "any day Wall St. USA" and it boggles the mind. On CNBC breathless talking heads clap, cheer and blow the kazoo over the "silver linings" they see in the economy and the market, while "behind the scenes" the news that "Joey Six-pack" doesn't see just keeps rolling right along. Just as a "for instance" they were cheering the fact that "only" 631,000 people had to file for first time unemployment last week, which was below the worst case estimates. Since it was below the worst case estimates, they used that as some sort of proof positive that things were certainly looking better and surely it was just a matter of a little more time and everything would be back to what they consider normal.

I'm wondering if the average guy in the street knew that last weeks initial reading was revised even higher than it was reported? I also wonder if he's being told that the "continuing claims" which are the amount of people already on the unemployment rolls hit another all time high? I wonder if our fictional "Joey Six-pack" knew that on Friday night the FED's struck again, taking over yet another failed bank? That makes 30 already this year, but they don't announce that at 8:30 am on CNBC to a million wannabe stock traders, no they wait for supper time on Friday nights to release that sort of news, so no one notices.

The theme of the letter for the past few issues has been that it's what the average person doesn't know, that will wipe him out. Unfortunately when it comes to the economy, and Wall St, the average person only knows what "they" want him to hear. The "good stuff" gets reported late at night, or on obscure news wires that won't get picked up by mainstream media. Of course since main stream media is part of "they", the people that manipulate what you hear to further what ever particular agenda they want to push, the average person really has "no clue" about what's really being done to him. That's where we come in. We give it to you straight, we pull no punches, and deliver the real news, the news that will ultimately make a huge difference in your life. It's "what we do".

For the most part, when I tell people that we are going to enter a depression the likes of which haven't been seen in over 70 years, they roll their eyes. When I tell them that there is an overall agenda behind the scenes that has been operating for decades with the sole purpose to create a one world sort of currency, a one world sort of Government, and absolute power over all the nations, they snicker. When I tell them that everything they are living through from the housing bubble/crash, to the bail outs, to the push for a more socialist society has been planned and executed by people with ties to old world money, that brings out the laughter. In a matter of seconds they make the mental decision that "we're nuts" and go on with their search to find answers with the more "respected" economic/financial talking heads.

We have a lot of new readers since we put the letter out for free. I can only imagine the reactions they have the first time they read one of our letters. So I'd like to make mention of a dear friend/subscriber named Gary W. from Illinois. Gary has been with us for some ten years or so, and started out like most do, trying to figure out if we were crazy or simply entertaining. But something started to happen as the time went by. The things we were talking about started to fall into place. Predictions we would make would come true. He started to use our investing strategies to safeguard his money. In a few years, we got to be "phone friends" and then later simply good friends. He related this story to me last week, and it made me chuckle, but I think it's worth telling.

Evidently he found himself in a place one day with a lot of people mingling around, and one of these people was looking at a financial website. Gary suggested he go to Invest Yourself and sign up for the free letter. He then said something along the lines of "You aren't going to "get it" when you first start reading this stuff, but don't stop because after a few months you're going to see the things you read start to come true, that's how it happened to me, and everyone else". Thanks Gary, I did indeed get a chuckle out of that. But I didn't bring that up so you could all get a chuckle, I do have a point behind all that.

I'm not Nostrodamus. I don't know the future any more than Ms. Cleo did. But what I can do is "connect the dots". Remember those childhood coloring books, where you draw a line from dot 1 to dot 2 and then to 3,4, 5 on up to 50 or so, and when it's done there's a picture of a rabbit something? Well that's all I do here folks, I connect dots. Now the fact is that anyone could do what we do, but there's two problems. One is that it takes time and effort, but the second reason is the real bogeyman. See, to connect the dots properly, you HAVE TO HAVE THE RIGHT INFORMATION to start with. That's the issue. So, lets see if I can give you a quick example.

I'd like you to go to your co worker tomorrow at the water cooler and ask a simple question to him/her. Just casually ask "Hey Jim/Judy what's the unemployment rate right now, any idea?" I flat guarantee Jim/Judy will say "wow, it's up to like 8% and could go even higher!" Well isn't that special? Why? Because indeed that's exactly what the mutant main stream talking heads tell you it is. It seems like "Jim/Judy" have a pretty good grasp of current affairs. But sadly, like usual Jim/Judy have been bullshitted by the very best con men that Uncle Sam and Wally Street can assemble. Let me show you what's really going on:

Uncle Sam actually publishes 6 "levels" of unemployment, classified as U1 - U6. The most reported number is generally accepted as "U3" and that's what's broadcast around the world as the "actual" unemployment numbers. Yet they are as fictional as Star Trek. Does "Jim/Judy even know there's a U4, 5 and 6? Nope, because if they knew about the other numbers, it might get them asking dangerous questions. Let's move on--- Okay, what on earth is a U6? Well that's the reading that includes "discouraged" workers. These are people who "consider" themselves to be unemployed. Well duh, they know if they are unemployed or not, and they're not. But, in the popular reading these people are kicked out of the numbers. So, why are they discouraged? Because there are no jobs in their area that they can attain.

Now, prior to about 95, these discouraged workers were part of the unemployment rolls. But Uncle Sam didn't take kindly to seeing how ugly that makes the "official" unemployment rate, so they became part of the "U" series of numbers. It allows they to be swept under the rug so to speak. So, just what is our unemployment rate, if you add back in those discouraged workers?? Right now it stands at better than 18%. In fact, in a number of states, it's already over 20%. I can flat guarantee that "Jim/Judy" doesn't know that, and THAT is why Jim/Judy can't connect meaningful dots. They have garbage statistics to work with.

Once you fully understand the outright fraud that the Government has used since about 1971 to cover up everything from unemployment, to inflation, to GDP readings, to banking laws, to you name it, THAT is when you can connect the dots and really get the high definition picture of what's going on. But, the sad part, is that even when you sift through all the "real" economic reports, uncover the real inflation rate, the one that's not being perverted by "substitutions", uncover the real unemployment situation, the real manufacturing situation, the real balance of payments, the real national debt, etc, etc, we are still only speaking about the state of the economy. We haven't even touched on the movement towards the "one world" stuff.

Right this second, unemployment is at about 18% and moving higher. Inflation, which the FED tells you is about 2% is somewhere around 12 - 13%. During the depths of the "great depression" it was generally accepted that unemployment was at about 25%, so as you can see, we aren't far from it. Housing foreclosures, which they "trumpeted" as slowing down, was in reality simply being hidden, as some 600K + properties weren't even being booked by banks, because they didn't want them showing up on the ledger. Likewise, many institutions had a moratorium on foreclosing, until they could see what plan Obama was going to put in effect. Now that they've seen the plans, which won't do squat, they've started foreclosing again. In just the first quarter a rush of some 136K new filings hit, and there's going to be more, much more to come.

It's because our fictional character Joey is having the truth held from him, that he feels things aren't so bad, they might even be getting better. Just as we wrote about a few weeks ago, you're going to see the average guy "feeling better" and sure enough this weeks reading on Consumer sentiment rose sharply. With tax refund money in hand, with the stock market defying reality, with TV telling him all the feel good things he wants to hear, old Joey's got a new outlook on things. EXACTLY as "they" want him to have. The problem however is that it's all an illusion, and when the truth really hits him, it's gonna hurt. I am not Dr. Doom folks, don't shoot the messenger. But the fact is we are racing towards a complete global depression, that simply cannot be stopped with the methods they are trying to employ.

The Governments plan is simple. Flood the system with trillions of dollars printed out of thin air. "Make" Joey start to borrow again so he can buy more crap he doesn't need with money he doesn't have. Put out trumped up economic reports, hiding every single item that could be thought of as being "bad" so Joey feels better. Feed the taxpayer money to the banking cartel, so they can enjoy billions in bonuses, while using that same taxpayer money to let rival banks go belly up, so the insider elites can buy their good assets at pennies on the dollar, and toss the losses back on us. This is what's happening, and unfortunately only people "looking" for the truth will ever know it until it's too late for them. At the same time, the mutants that planned and executed our current disaster, are living large, and getting closer day by day to their own twisted utopia, a world run by banking elites, where they control the worlds finances, and hence it's people.

This is why our newsletter sounds so strange, funny, bizarre and nutso to the average person. They figure that since they don't hear any of this on CNBC, or Bloomberg, or their nightly news, we must be tin foil wearing, whacko's. Nothing could be further from the truth. So, thanks Gary for telling that gent to give us a read, and to that person I say "Hang in there, and listen to what we say, as these events unfold you're going to be one of the very few that knew about it, and had time to plan for it".

Alright, a lot has been said in the media about this Swine flu. In fact, that's the media's job, take something relatively unsensational, and turn it into a three ring circus. Part of that is for ratings of course, the more dire and despicable they can make the news, the more people tune in to get scared. But part of it is also an "order" from the media elites, the billionaires that own these media corporations, and tell their affiliates what the news is and how it will be reported. One of the main reasons for making a Carnival act out of anything they can get their hands on, is to take focus away from the effects of the real economy, the one that's going closer to rolling over every day. It's an age old deception, create a stir "over here" so people don't see what's going on "over there".

So first, lets put this swine flu thing in some perspective. Each year, there are approximately 350-500 million cases of malaria,[1] killing between one and three million people, the majority of whom are young children in Sub-Saharan Africa. Consider Tuberculosis. Annually, 8 million people become ill with tuberculosis, and 2 million people die from the disease worldwide. It is estimated that the US has 25,000 new cases of tuberculosis each year, 40% of which occur in immigrants from countries where tuberculosis is endemic. Now, how about "regular old seasonal flu?" According to the Centers for Disease Control, seasonal flu infects between 15 and 60 million Americans each year (5% to 20%), hospitalizes about 200,000, and kills about 36,000. That comes out to over 800 hospitalizations and over 250 deaths each day during flu season.

As you can see, just these three fairly common "diseases" inflicts, or kills virtually millions of people each year, and yet it's "ho hum" news. Yet back in 2003, people were wearing masks, duct taping their windows and going crazy over SARS, and when that fizzled out, the estimates were that just 8,000 people worldwide had died from it. Then of course it was "Bird flu" we were all going to die from, and even our President declared that some "2 million people" could die from this savage disease. Yet at the end of 2006, the worldwide death toll was 103 people. Clearly the panic was more than the results.

The panic surrounding swine flu is strikingly similar to SARS and bird flu, and also similar is the way that it's not living up to its potential as a killer so far. As of Sunday morning, the WHO Web site was reporting 787 confirmed cases of swine flu in 17 countries. Mexico has reported 506 cases, with 19 deaths, while the United States has confirmed 160 cases in 21 states and one death. Not to make this sound trivial, but more people will get and die from toothache today than from Swine flu. So, point ONE is that the media is blowing this all out of proportion SO FAR. Yes it could spread more quickly, yes this could be just the beginning and it steamrolls into something major, but so far, it's more hype than disaster.

Now here's where things get interesting, and the bottom line is that I have NOT made up my mind on this. There is a theory, claiming it's the globalists way to wipe out a huge percentage of the global population, something they see as cannon fodder to be used, exploited and ultimately tossed in the garbage bin. The question isn't whether I believe that to be one of their agenda's, I most certainly do. If you really understand the big time globlalist elites of the world, they make no bones about the fact they see us "little people" as nothing more than worker ants, and most of us should be exterminated. They use us up in their silly wars for profit, they chemical us daily via drugs, mercury, fluorides, artificial sweeteners, etc. But is this, some form of evil plot they've put in action so that certain major biotechs can make a fortune, while they "cull the herd?"

It could be. I won't get into the meat and potato's of it right now, but just know that terrible things have been done in the past all in the name of profits, and terrible things will be done in the future too. Unfortunately we live in a sick world, where filthy "lucre" is all that matters to these slime balls, so making people sick on purpose is something they've done before and will do again. Indeed, one of the more disturbing things about this swine flu is the following blurb that I copied from the Washington Post. Check it:

Genetic analysis of the virus indicates it is highly unusual: It is a hybrid that resulted from a combination of four different viruses -- one that typically infects people, one that originated in North American birds and two from pigs in Europe and Asia

That's a very interesting statement don't you think? One that typically infects people, so it's fairly easily transmitted, one from N.A. that is common to foul, and two strains from pigs in Europe and Asia. That my friends is indeed about the best combo platter one could "make" if indeed you wanted to make a whole bunch of people sick, and then profit from everything from drug sales, to more power to control your lives and movements, to actually "thinning the herd" a bit.

The only reason I'm not all aboard that this is indeed the direct result of a "plan", is simply because the darned thing just isn't that awful deadly. Most of the people in the US that have gotten it, don't feel any worse than the usual flu, and the only death was a child brought here from Mexico. The people in NY that got it and were treated didn't even have to stay in a hospital. Surely if "they" wanted to wipe out a whole lot of people, they could have come up with something a bit more powerful no? Yes. Although it's true that if this thing gets really going in say an area like Africa, it's going to wrack up big numbers, simply because the people already live in horrible conditions, and most have already gotten impaired immune systems.

So, time will tell if indeed this turns out to be a big time population reducer, but as of right now I'm going to say that I feel if you are in the US, you don't have AIDS or a compromised immune system, this thing simply isn't powerful enough for you to fear for your life. It might spread and you might catch it, but as we know, millions catch the ordinary flu each year, and many die from it. But most "healthy" people don't die, they get horribly sick, but then recover. I think this would be relatively the same. But, all that said, there is NO DOUBT that whether they let it loose on us, or were "just lucky enough" that it hit on it's own, the powers that be are milking it for all it's worth. From the media coverage, to the run on medicines and vaccines, to the various paramilitary branches of our Homeland security, everyone is getting a piece of this pie.

As the economy melts down next year and the following year, Uncle Sam has been quietly expanding so called "detention centers", and bringing more and more military into play in civil manners. Basically they are gearing up for pockets of revolt that they expect when the economy crumbles, the dollar is removed as the world reserve, a new currency is issued, and most of our sovereign rights are stripped. So, this health scare is certainly giving them the opportunity to expand their control over us. Almost every day we see a new "rule" passed extending the reach of the Homeland security people and the so called "disaster response" people. So, if they didn't plant this bug, they sure are using it to their advantage. Just take the normal precautions folks, stay away from congested crowds, wash your hands frequently, keep your fingers out of your eyes and your nose, keep your vitamins up, eat a bit more "anise" spice, and chances are you'll be fine.

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Friday, May 1, 2009

URGENT NEWS !!! Martial Law USA?: Alex Jones Reports Swine Flu A Hoax

Martial Law USA?: Alex Jones Reports Swine Flu A Hoax! AJ reports that the Swine Flue scare is actually a hoax being used as and excuse to declare martial law and legalize forced inoculations as a distraction to cover up the collapsing U.S. economy and banker looting of .U.S Treasury. You can hear part 1 of the 4/30/09 show right here:

Or hear the whole show right here:

Gold Versus Paper

By: Adam Brochert
April 29, 2009

I wanted to return to a theme that got me to start writing my blog as an attempt to contribute to society: Gold versus paper and what it means. Gold bugs know what it means but there is real value to looking at the contrast between the two for those who have not yet experienced the fever that makes any strain of flu pale in comparison. It is essentially asset-backed or "honest" money (i.e. Gold) versus paper money and other instruments backed by the promises of men and women and the institutions they represent (i.e. fiat currency or "dishonest" money and its derivative products).

The founding fathers of the United States, say what you want about them and they weren't saints, intended for this country to have gold and silver as the foundation for the monetary system of the country. Paper or fiat money backed only by promises is not a new invention and it has been used for centuries. Every time it has been tried, it has failed. EVERY SINGLE TIME. The U.S. Dollar has now been off the gold standard for close to 40 years and the course the United States is now on is typical for societies that make the decision to use fiat currency.

Every problem we have is "solved" by throwing money at it, because creating money requires no effort. However, every issuance of money in this country is an issuance of debt or the creation of an I.O.U. When the unconstitutional, for profit, private federal reserve1 bank creates money, it doesn't cost them anything. Whether they create one dollar or $1 trillion, all that is required is a few key strokes on a computer - paper and ink aren't even required any more. When the federal reserve gives the instantly created digital money entry to the U.S. government to pursue their policies, it also creates a digital ledger entry saying that the federal reserve has bought some U.S. Government Bonds. The federal reserve then collects interest from the U.S. government on the bonds, which it purchased with money it created out of thin air. Talk about risk and effort-free profits!

Put another way, the U.S. and its citizens are basically debt slaves to the private, for profit, unconstitutional federal reserve. This is not a conspiracy theory; this is actually how our country and monetary system works. The government apparatchiks don't mind, as a paper system requires no fiscal discipline and allows all kind of hare-brained schemes to be funded as debt is meaningless when any problems can be papered over with the creation of even more debt (at least this is the misguided thought of those only thinking about their re-election campaign next year). Thus, schemes like paying farmers not to grow food make sense in a fiat world even though they don't pass the common sense test.

When money is dishonest and can be obtained easily by those close to the "printing press," more and more money is always required. Like a narcotic, easy money is addictive. Those close to the printing press are also given an unfair advantage over everyone else, as they can buy up assets immediately after receiving the newly created money. By the time the average citizen wants to buy the same asset, the currency has already often been debased, as every creation of a new dollar necessarily decreases the scarcity and thus the value of the remaining dollars in circulation, and thus the asset price rises in an amount often proportionate to the degree of paper money debasement.

A system of money backed by Gold or another "hard" asset makes money creation more difficult as it creates a disincentive to be a spendthrift. If a paper currency can be exchanged for physical Gold (as citizens could do in the U.S. for a decent stretch of time before 1933) and the government starts to create money out of thin air, guess what citizens (and foreign trade partners) start to do? You guessed it - they turn in their paper for Gold to protect themselves from the monetary debasement.

When France did exactly this to the United States in the early 1970s (i.e. asking to turn in or redeem their U.S. paper Dollars for Gold), Nixon did what any dishonorable politician would do - he completely defaulted on our obligation to redeem our paper for Gold to foreign nations. Earlier, way back in 1933, Roosevelt had already defaulted on the American public. Not only did Roosevelt rescind the ability of Americans to convert their paper U.S. Dollars into Gold, breaking a sacred contract with the public, he actually had the gall to declare Gold ownership illegal and threatened prosecution of those who failed to turn in their Gold to the state. To add insult to injury, Roosevelt then declared in 1934 that the state's Gold, including that stolen from its citizens, was suddenly worth 69% more than when it was stolen (i.e. the gold exchange rate was changed from $20.67/ounce to $35/ounce by decree). How many were taught this fact in their history classes and how significant such an event was and still is?

Once the final monetary link to Gold was severed in the United States in the early 1970s, everyone was placed in a casino, most without even knowing it. Because without any restraint imposed by a Gold-backed currency, the printing presses and debt immediately started to spiral out of control until Gold reached $850/ounce in 1980 and the short-term interest rate spiraled up to 16-17% at this time. Don't forget that this interest rate is what new debt taken on by the government cost! The for-profit, unconstitutional, private federal reserve must have been laughing hysterically every time a request for more money came in from Uncle Sam when the interest rates were this high. Such rates are, of course, the definition of usury.

Such a situation of monetary chaos is inevitable when politicians are given a seemingly unlimited ability to create money out of thin air. Inflation not only affects the daily cost of living, but also mandates schemes and risky bets to maintain one's standard of living. And by the way, the mainstream economists of the time (i.e. those "sanctioned" by government and given media attention and awards like the current Mr. Krugman) actually predicted that gold would go down significantly in value relative to U.S. Dollars once we were taken off the gold standard!

The market driven response to high interest rates in the early 1980s was enough to calm the storm temporarily (and please don't believe the revisionist history story that Paul Volcker did anything special - he followed the market set interest rates, just as current fed chairmen do). Now, decades later, we are in a situation where the debt, interest payments on the debt, and entitlement obligations of the United States cannot realistically be paid back. Many U.S. citizens essentially are in the same debt saturation boat, having learned from their bureaucratic leaders how to run household finances. The citizens will have two choices and will do either an unintentional default where debt payments can't be made due to unemployment, declining wages, etc. or will intentionally default by doing things like walking away from underwater mortgages.

The government thinks both of those options are bad marketing for re-election campaigns and will instead try the third option: keep printing money and pay back the debt with the newly created money. This is essentially counterfeiting in my book since there is no longer any reasonable hope of paying for all the functions our government has pledged to society that it will perform (e.g., Medicare, Medicaid, Social Security, etc.) and still having something left over to service the debt already incurred. The losers in this battle are the value of the currency and the integrity of the country.

When the intrinsic value of our money is really only as good as the promises made by the private corporation backing it and that corporation is corrupt and secretive, the underlying society starts to deteriorate. Do McDonald's dollars make intrinsic sense (no offense to McD's, as a burger-backed dollar is better than what we have now)? Corrupt money creates a corrupt society. It is not that a society on a Gold-backed currency has no corruption - humans are prone to corruption regardless. But when a private, secretive organization can control money and its issuance and is given a no-bid contract to create money out of thin air at the whim of centralized and insulated politicians (who are pursuing their own schemes), isn't this the definition of absolute power? And doesn't absolute power corrupt absolutely?

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered." - quote from Thomas Jefferson

The current fiscal, economic and market shenanigans and manipulations are the classic hallmarks of the later stages of a system using fiat currency before collapse. The good news is that we should eventually come out of this with a new currency and it is my hope that it will be Gold-backed. The bad news is that the level of suffering coming to the United States is going to be shocking to those that did not live through the previous so-called economic depression of the 1930s. The only difference is that this time around will be worse due to our debtor status.

The boom cycle this time around was unprecedented and the bust will be disproportionately severe as a result. The Dow to Gold ratio is a marker for the Gold versus paper debate (using the Dow as a proxy for stocks/paper/financial assets) and is calculated by dividing the "price" of the Dow Jones Industrial Average by the price of Gold. The chart below is from (a great site!) and shows the instability of this ratio introduced by giving control over our money to a private group of people whose interests are by definition not aligned with those of the United States. I agree with the prediction of the chart author that we will get to a ratio below one this cycle to restore equilibrium (i.e. the price of one ounce of Gold will be greater than the "price" of the Dow Jones Industrial Average). I am not happy about this and it is not good for our country, but one can only prepare for the inevitable.

During this crisis, Gold will once again rise from the ashes (as it has already started to do) and help to restore order during the chaos. The next stage of the bear market in almost everything besides Gold (i.e. stocks, bonds, real estate, and commodities) will start to get dangerous with counterparty risk coming to the forefront. Those playing in the casino need to realize that the owners are pretty desperate at this point, even after drinking trillions from the government teat.

When your electronic internet-only broker says your stock or option order filled, how do you know what you own or if you even own anything at all? Trust is a valuable commodity these days, as it is scarce (and rightly so). Return of capital will be more important than return on capital at some point relatively soon. Banking holidays, stock market shut downs, goods and/or service shortages and civil unrest are all a likely part of the adjustment needed to restore our capsizing ship.

Deflation is the poison du jour of our unconstitutional central bankstas and it will likely last longer than most gold bugs think. Hyperinflation is not necessary for Gold to maintain its value, one the functions money is supposed to perform. Most who have not studied history don't realize that Gold is a better protector of wealth during deflation than during inflation.

It is my sincere hope that we will emerge from this ongoing crisis relatively unscathed and appropriately angry at the root cause - the unfettered and unchecked creation of debt (i.e. fiat money). In the mean time, Gold offers you a cheap financial insurance policy with no counterparty risk. If you do not have at least 10% of your liquid assets in physical Gold (no, I am not talking about the GLD ETF, which is highly suspect and likely to default when the real crisis hits), Mr. Market is giving you yet another buying opportunity as I write this.

1. Footnote: Please note that I intentionally refuse to capitalize "federal reserve" as they don't deserve that respect in my opinion. My spell check feature on Microsoft Word never fails to recommend that I capitalize this institution's name, since it is apparently proper to do so in the eyes of those who enjoy fleecing and/or being fleeced.

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