Monday, July 27, 2009

The New American Slavery

By Jolly Roger -
April 2, 2005
http://bigeye.com/new_american_slavery.htm

The average American in the year 2005 lives a fragile existence, in a struggle for survival that can be ended by missing a few paychecks. The carrot at the end of the stick which was formerly known as "the American dream" has been replaced by a whip that can best be described as the American nightmare of homelessness, and slow, early death. You no longer work to achieve a better life for yourselves and your children. You work to keep a roof over your head, and you pray that you don't lose it. You became a slave when fear replaced incentive as your motivation to work, but I still suggest that you work while you can, because if the company you work for can't send your job overseas, the U.S. government is allowing 2000 people per day to enter this country illegally, because they're willing to do your job for less.

It doesn't matter if you're a "white collar" or "blue collar" employee. If you're an American, you're too highly paid. There are billions of people who want your job, and your government is doing all they can to see that you lose it to them. You see, we're not really Americans anymore. Now we're just anonymous faces in the "global village," because our government has sold our nation to foreigners and international bankers, and the new bankruptcy law has doomed the American citizen to a life of debt slavery. They'll insist that illegal immigrants are only doing jobs that Americans refuse to do, and you'll probably believe it, because if you're watching the TV that shovels that crap, you probably still have your job. The illegal immigrants are doing jobs that Americans always did, and every unemployed American I talk to can't find a job anywhere. And just like the European immigrants that flooded this country before the economic depression of the 1930's, today's illegal immigrants also have no gripe with a government that has allowed them work for high wages in America, and send billions back to their homeland. Nor do they care very much about our constitution, bill of rights, or way of life. They're only here for what they can grab, and our government has welcomed them with open arms, because they're grabbing it from you.

You're already working much longer, and much harder, to achieve a much lower standard of living than the previous generation, and 25 percent of working Americans no longer even get a vacation. The Social Security retirement age has been raised to match the life expectancy of American males, so apparently, you're also expected to work until you're dead. When you do finally get a vacation, they only trip you'll be taking will be in a pine box, and that's only if you're one of the lucky ones. Most of us will only get the state-issued canvas bag that gets tossed into the pit with all the others. If you don't mind the fact that you'll be working until you're dead, you might also want to consider the fact that you'll get nothing for your labor, because this nation's economy is about to crash like a freight train, and when it does, everything you've worked for will vanish. After the depression gets ugly, and your family has made the adjustment from three meals per day to three meals per week, the newspapers will blame your hunger on "the economy," as if it were some magical force that uncontrollably ruined a couple hundred million lives. Nothing could be further from the truth.

Politicians and international bankers can manipulate national economies at will, much in the way the media manipulates your mind, and a decision has been made to impoverish Americans, because global government requires that everyone in the world have an equally low standard of living. Simply put, we're being robbed of all we've worked for, because our government wants us to be poor, hungry, and docile, dependant upon them for our existence, and in fear of them for our lives. The government of the United States is intentionally destroying the economy of the United States, because the politicians and the international bankers they work for have decided that the American way of life, and catering to the demands of the American constitution, is simply too expensive.

Regardless of how wealthy you think you are, you actually have no real money at all. The "federal reserve notes" that are in your wallet, and your bank account, aren't really money, but are actually only paper on a debt that can never be paid, not even by combining all the assets and labor of every American alive today. Any loan-shark with a third grade education will tell you "the paper's no good," and naturally, the foreign investors who allow us to float this debt, have come to the same conclusion.

What is commonly known as the "U.S. dollar," represents a debt that is owed by the U.S. federal government, to the federal reserve bank. The federal reserve bank happens to be the privately owned entity that lent the money that's represented by the paper in your wallet. The federal reserve act signed away everything you own, and the fruit of your labor as collateral on this debt, and as foreign investors are becoming increasingly unwilling to invest the $2 billion per day needed to cover the interest, our creditors will want to collect it.

About 90 percent of all Americans are mortgaged to the hilt, and would have little or no assets left if all debts and liabilities were to be paid.* Most Americans have taken advantage of low interest rates, and are now paying a mortgage on their homes. The booming real estate market has made every purchase profitable, because the price of a home always rises. The problem is that the price of a home today is incredibly over-inflated, and the real estate boom that's been keeping the American economy afloat, is about to bust. Interest rates are going to rise, and the price of your home is going to drop drastically, which will leave you stuck paying for a house that probably wouldn't pay the interest on your debt if you sold it. If you're lucky enough to remain employed, inflation will shred your paycheck until you can no longer make mortgage payments. This is when you need to remember that when a nation's economy collapses, the wealth of the nation doesn't disappear, it only changes hands.

Millions of Americans are about to be tossed into the street, and because we're a kinder and gentler America, from the street they'll be tossed into shelters. Once in the shelter, they'll be wards of the social service system, which will make sure they all have food, and a bed to sleep in. In exchange for that food and shelter, the "welfare reform" act will put them to work at jobs where they will collect no additional salary. I guess the idea of "welfare reform" is a lot more acceptable to Americans than "forced labor" but regardless of what you call it, many Americans will soon experience slavery once again, and the slaves are not just sweeping public streets. Under the welfare reform act, many Americans are being put to work for private companies for no wages other than the cost of their food and shelter, both of which constitute the bare minimum requirements of survival. By causing the economy to collapse, and then "saving" the poor, our government can legally force millions of Americans into slavery. The new slavery will be blamed on "the economy," and it will employ a much larger percentage of the population than it did before the civil war.

To understand how they're accomplishing this, we need to turn our thoughts back to our monetary system, because due to the fact that it is no longer based on the gold standard, our government is in control of the money supply, and that gives them the ability to cause rampant unemployment, which is exactly what they're doing. The framers of the U.S. constitution protected us from this brand of tyranny, but because Americans were foolish enough to ignore and/or trust their government, they will become slaves, but most of them will blame themselves for their plight.

Article 1, Section 10, of the U.S. constitution clearly states that no state shall... make any thing but gold and silver coin a tender in payment of debts. The constitution's prohibition of "fiat money" (what's in your wallet) guarantees that the wealth of the nation remains in the hands of the people, which leaves the government incapable of stealing the population's wealth, as they're doing today. You can collect all the dollars that you like. Our government decides what they're worth, and by keeping the presses working overtime, they're insuring that the dollar will soon be worthless.

The U.S. department of labor has also changed the way it collects data regarding unemployment, which allows for the fraudulent unemployment figures that are printed in the newspapers, and allows working Americans to believe that things aren't really that bad. Their new "household survey" system avoids counting most of the poor by basing unemployment figures on telephone surveys. A real estimate, based on population and payroll taxes, reveals that about 25 percent of the American workforce is presently unemployed, and that will eventually force them into the social service slavery system. Unless your mortgage and debts are completely paid off, and you can still pay your property taxes, there's a good chance you'll soon be joining them. Welcome to the third world, and to an American world, where slavery is legal once again.

What are you going to do when your government forces you into slavery? You can't avoid it, because if you're homeless, you'll be rounded up and brought to a "shelter", where you'll be fed, and probably medicated if you're not happy to be there. With so many people becoming homeless, it will be easy for them to find an apartment for you, and social services will pay your rent, and give you food stamps.

Soon after that they will find you a job, but naturally, you won't be taking home a paycheck because you're in debt to the social service system. They'll tell you that you're working your way back to independence, but since your salary will never be more than your expenses, you'll work for free until you're dead. If you refuse to work, the government "assistance" will be cut off, you'll be back out on the street, and you'll probably do your next job with a shackle around your ankle.

I'm not asking that you waste the time or paper required to write your congressman, because they don't care what you think anyway. What I am asking you to do is to remember something. When the economy does crash, and you're forced into the street. I want you to remember that this isn't your fault, and it's not the result of a "bad economy." Please remember that you're poor, hungry and homeless, because that's where our government wants you to be, and they intentionally destroyed the U.S. economy because they want you to suffer, and beg. And regardless of how bad things get, never sell your rifle. -- Jolly Roger

"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens..... Lenin was certainly right." - John Maynard Keynes*

*90 percent of all Americans are mortgaged to the hilt, and would have little or no assets left if all debts and liabilities were to be paid. --- Rep. Traficant to U.S. Congress.

**John Maynard Keynes is the economist for whom our present monetary system is named.

Sunday, July 26, 2009

VIDEO: Bob Chapman On Alex Jones TV / The Point Of No Return Pt 1 - 4







VIDEO: Bob Chapman On Alex Jones TV Pt 1 - 4







VIDEO: Gerald Celente On The Alex Jones Show / The Worst is Yet To Come !!!







VIDEO: Gerald Celenti On Coast 2 Coast Pt. 1, 2 & 3





VIDEO: The Federal Reserve Caused The Crash

Wednesday, July 8, 2009

VIDEO: DeMint amendment to audit the Federal Reserve blocked by Senate Leadership



International Forecaster: Economy In Turmoil Cant Be Fixed With Farcical Regulation

Bob Chapman
July 4, 2009
http://www.theinternationalforecaster.com/International_Forecaster_Weekly/Economy_In_Turmoil_Cant_Be_Fixed_With_Farcical_Regulation

The Friday night, June 27th FDIC Financial Follies were presented again at 9:00 pm EST. That is so the public will not hear about the failures.

Five U.S. banks with total assets of about $1.04 billion were seized by regulators, pushing this year's tally of failures to 45 as a recession drives up unemployment and home foreclosures.

Community Bank of West Georgia, in Villa Rica, Georgia; Neighborhood Community Bank of Newnan, Georgia; Horizon Bank of Pine City, Minnesota; MetroPacific Bank of Irvine, California; and Mirae Bank of Los Angeles were closed yesterday by state regulators, according to statements from the Federal Deposit Insurance Corp. The FDIC was named receiver of the four banks.

Wilshire Bancorp's Wilshire State Bank will take over all of Mirae's $362 million in deposits, and will purchase $449 million of assets, the FDIC said in a statement.

Sunwest Bank of Tustin, California, acquired most of MetroPacific's $73 million in deposits and $80 million in assets, the FDIC said. Stearns Bank of St. Cloud, Minnesota, bought Horizon Bank's $69.4 million of deposits. Stearns will purchase $84.4 million of Horizon's assets, the FDIC said.

The FDIC didn't find a buyer for Community Bank of West Georgia, and said it will mail checks to reimburse insured depositors. The bank has deposits of $182.5 million. Charter Financial Corp.'s CharterBank will assume Neighborhood Community Bank's $191.3 million of deposits and purchased some assets in a loss-share agreement with the FDIC, according to the agency.

"The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector," the FDIC said. "The agreement also is expected to minimize disruptions for loan customers."

Regulators have seized the most U.S. banks this year since 1993. The U.S. economy has shed about 6 million jobs since the recession began in December 2007. Foreclosure filings surpassed 300,000 for the third straight month in May, according to RealtyTrac Inc.

The U.S. banking industry said it made $9.8 billion during the first quarter trading derivatives and securities as investors started returning to the markets amid signs the recession bottomed.

The surge was led by trading in interest-rate derivatives, which allow investors to hedge against rate swings, as the banks reported revenues that were more than triple any quarter during at least the past five years, the U.S. Treasury's Office of the Comptroller of the Currency said today in a report.

Revenue rose as banks, constrained by the worst financial crisis since the Great Depression, charged "wide" bid-ask spreads, or the fees that traders make from the gap between prices at which they'll buy and sell the contracts, Deputy Comptroller Kathryn Dick said in a statement.

Revenue from trading interest-rate contracts soared to $9.1 billion from $1.9 billion a year earlier and from a $3.4 billion loss in the fourth quarter of 2008, according to the report. Currencies contracts accounted for $2.4 billion in the 2009 first period. The banks lost $3.15 billion from trading credit.

The Friday Night FDIC Financial Follies came on Thursday, July 3rd, due to the holiday weekend. We are told that before the year is out 400 banks will go under. There have been a number of banks that have been merged with other stronger banks, which greatly distorts this picture.

Six banks in Illinois and one in Texas were seized by regulators as the deepening financial crisis pushed the toll of failed U.S. lenders this year to 52, the most since 1992.

Twelve banks have failed this year in Illinois, the most of any state. The seven lenders seized today, with total assets of $1.49 billion and deposits of $1.34 billion, were closed by state or federal regulators and the Federal Deposit Insurance Corp. was named receiver, according to statements from the FDIC. Buyers were named for each of the closed institutions.

The Illinois banks are affiliates of Peotone Bank & Trust Co., in Peotone, Illinois, about 45 miles (72 kilometers) south of Chicago. The failures resulted primarily because of soured loans and losses on investments in collateralized debt obligations, the FDIC said. Illinois, with an unemployment rate above the national average, was one of seven states to begin the fiscal year yesterday without a spending plan.

"The six failed Illinois banks are all controlled by one family and followed a similar business model that created concentrated exposure in each institution," the FDIC said. CDOs, which packaged bonds and loans into notes of varying risk and yield, lost money as real estate defaults soared.

Regulators this year have closed the most banks since the savings-and-loan crisis of the 1990s as lenders struggle with mounting losses on mortgages and commercial loans. The total for 2009 is more than double the 25 banks shuttered in 2008 and surpasses the 50 that were closed in 1993. The prior year there were 181 failures or government-assisted transactions.

The House did it. They succumbed to the biggest tax increase in history for Americans. The American Clean Energy and Security Act passed by 219-212, a disgrace to our country. The worst legislation since CAFTA, NAFTA, the Income Tax and the Federal Reserve Act. Trillions more in taxes and millions of job losses. A 1,200 page piece of legislation that not one Congressman or woman read. If allowed to be passed in the Senate it will be the greatest economic threat to Americans in history.

Costs to American will be 20% of disposable income. An increase in gasoline tax of $0.77 a gallon and a doubling of every electric bill in the country. The taxes go to government past of which will go to fund the UN and IMF.

This bill has to be stopped in the Senate. Hit every Senator with emails, phone calls, Fax's and letters. Short and sweet – do not vote yes on any legislation to limit greenhouse-gas emissions, such as the American Clear Energy & Security Act.

America's biggest oil companies will probably cope with U.S. carbon legislation by closing fuel plants, cutting capital spending and increasing imports.

Under the Waxman-Markey climate bill that may be voted on today by the U.S. House, refiners would have to buy allowances for carbon dioxide spewed from their plants and from vehicles when motorists burn their fuel. Imports would need permits only for the latter, which ConocoPhillips Chief Executive Officer Jim Mulva said would create a competitive imbalance.

"It will lead to the opportunity for foreign sources to bring in transportation fuels at a lower cost, which will have an adverse impact to our industry, potential shutdown of refineries and investment and, ultimately, employment," Mulva said in a June 16 interview in Detroit. Houston-based ConocoPhillips has the second-largest U.S. refining capacity.

The same amount of gasoline that would have $1 in carbon costs imposed if it were domestic would have 10 cents less added if it were imported, according to energy consulting firm Wood Mackenzie in Houston. Contrary to President Barack Obama's goal of reducing dependence on overseas energy suppliers, the bill would incent U.S. refiners to import more fuel, said Clayton Mahaffey, an analyst at RedChip Cos. in Maitland, Florida.

"They'll be searching the globe for refined products that don't carry the same level of carbon costs," said Mahaffey, a former Exxon Corp. refinery manager.

Prices Seen Rising

The equivalent of one in six U.S. refineries probably would close by 2020 as the cost of carbon allowances erases profits, according to the American Petroleum Institute, a Washington trade group known as API. Carbon permits would add 77 cents a gallon to the price of gasoline, said Russell Jones, the API's senior economic adviser.

House Passes Climate-Change Plan, an Obama Priority (Update2) http://www.bloomberg.com/apps/news?pid=20601087&sid=aPwZANlDq4R0

After having written so long about the Fed nothing should rally surprise you. The Fed, under attack by Ron Paul's HR-1207, came out with a strong offense for a defendable defense. Being granted more financial dictatorial power it is the antithesis of what America needs. In essence America is being handed a financial dictatorship. This will make the fed even more unaccountable then it already is. We will be faced with across the board problems and more secrecy from this privately owned bank. Continue to bombard the House members on HR 1207 and Senate members on S. 604, sponsored by Senators Sanders and DeMint.

It is proposed that the Fed will be the systemic risk regulator and supervisor of the too big to fail institutions, which own the Fed. We call that incestuous. The Fed will supply liquidity to save its shareholders. A council of regulators will be created to replace the President's Working Group on Financial markets. That group would be chaired by the Treasury, but with advisory powers only. That means the power to manipulate all markets without interference will solely be left to the Fed. . They would be able to make any market in the world what they want it to be. There are no free markets now. The Fed would have full fascistic control. This would give the Fed's owners the opportunity to totally loot the system and the American public.

For almost 20 years the Fed has advocated no regulation of derivatives, now they are to regulate them. That would include writers maintaining at least 5% interest in the derivatives.

The Fed would create a Consumer Financial Protection Agency with rules against predatory lending and transparency standards at the retail level. This is a farce in as much as the major banks own the Fed.

A new resolution mechanism that would clear big bank balance sheets of all toxic waste throughout the financial system, that you as taxpayers, would get to pay for.

The Fed would be the leader in the formation of global financial regulation and supervision, as part of a plan for the consolidation of all such enforcement on the path to world government. The Fed would marry into the new European Systemic Risk Council comprised of EU central bank governors. This Council would breach US sovereignty by issuing warnings and recommendations, somewhat like the Bank for International Settlements does. The Fed would work in conjunction with the EU, but at this time not be controlled by an international body. This is the foot in the door approach. Once set up the Fed would become part of this international cross border agency. From the very beginning there would be a single rulebook applicable to all financial institutions, which belies the fact that the agency would in reality control all financial institutions from its inception.

The President's plan requires all advisers to hedge funds and other pools of capital, including private equity funds, and venture capital funds, a some fixed level, to register with the SEC.

Financial derivatives will be regulated. Standardized credit default swaps and other OTC derivates will be required to clear through a central counterparty and trade on exchanges and other transparent trading venues. The custom products will have to register as well.

The Ron Paul, Federal Reserve Transparency Act of 2009 now has 244 co-sponsors. A very upset Fed three weeks ago herded former Enron lobbyist Linda Robertson to payoff and pressure House members. Now the Securities Industry and Financial Markets Association has been brought into the fray to counter the populist backlash against bankers. The spearhead will be led by two former aides to former Treasury Secretary Henry Paulson. The plan is to target every representative in the House and unleash a multi-million dollar media blitz in city by city. A massive propaganda campaign has begun. Former treasury aides Michele Davis, a PR type and Jim Wilkinson, a former chief of staff are leading the charge. Engaged as well is Democratic polling company, Brilliant Comers Research & strategies.

SIFMA has 600 securities firms led by Goldman Sachs, JP Morgan Chase and Citicorp. The theme is lets work together. Yes, these are the firms that have looted American citizens of their hard earned wages for years.

Opinion Research found 34% of investors are angry and Share Owners.org 58% are less confident in the fairness of the financial markets.

All this wouldn't be necessary if Treasury, the Fed and the major firms were not manipulating the markets.

The Fed, banking and Wall Street are responsible for the destruction of about 40% of worldwide wealth. Yet, they think they have done nothing wrong. They have disemboweled both residential and commercial real estate, which was in part responsible for a fall in the Dow from 14,100 to 6,600.

They have bamboozled the public with stress tests, which were bogus to prove false solvency. That avoided government oversight and as a give up allowed a special master of compensation for those, who took taxpayer funds, to escape insolvency. Wall Street denizens view their large salaries, bonuses and options as a right – an entitlement. These are the same people who destroyed the American dream and put their firms into insolvency.

The Fed and the Treasury had hundreds of billions of dollars for banking, Wall Street and insurance companies, but they couldn't allow borrowers, facing foreclosure, a break. That would have staved off two million foreclosures and preserved $300 billion in equity. Congress couldn't help average Americans, only the rich. We are in the greatest financial crisis since the early 1870s or the 1930s. These people have ravaged the financial and economic world and they are still in complete control of the system. That is because they have bought Congress and they have created a revolving door between NYC and Washington. Last year, banking, securities and investment firms gave $154.9 million in political payoffs. Real estate interests stuffed $136.7 million into politician's pockets; commercial banks gave $37.1 million and hedge funds $16.7 million, for a total of $345.4 million. This is why campaign contributions have to end along with lobbying. When are Americans going to wake up to what is being done to them?

It is only a matter of when before there will be insufficient buyers of Treasuries to fund bond issues. We believe this has previously happened from time to time and that buying by the Fed from offshore accounts has held the market up. This we believe is why the Fed doesn't want an audit. When foreign central banks stop buying, the Fed will monetize more and more as they are currently doing. They will be buying $3 trillion worth of Treasuries, Agencies and CDO toxic waste from banks over the next three months.

On June 5th, we saw the 2-year and 10-year Treasury yields spike as the Fed lost control of the market. We noted the actions at that time. It won't be long before most long dated paper, that is over 5 years, will have to be monetized in a very big way. That also means interest rates will continue to move higher. We believe the treasury will be in the market for $1.2 to $1.5 trillion. That means the Fed may have to buy $600 billion to $1 trillion in Treasuries. They have already committed for $300 billion. It is hard to know exactly what this private corporation is up to because much of what they do is in secret. As rates rise it becomes very difficult to finance mortgages. At a 5.5% mortgage rate, 80% of pending and future mortgages cannot be consummated.

In another area of finance the commercial paper market continues to contract. It is a very important source of borrowing for business and industry. As it contracts it keeps companies from producing goods and services and the economy contracts. The available paper has contracted by some 50% over the last two years, in spite of the Fed assisting that market. As available funds are reduced, production falls and unemployment rises.

Bank credit has fallen by $23 billion to $9 trillion, this in spite of a 3.6% rise yoy. In 2009, credit has fallen by $170 billion. Consumer borrowing is dropping and savings just hit 6.9%. In spite of late payers other borrowers are paying off their loans. Consumer credit usage has fallen about 8%, the same as in the 1990s recession.

As we write (6/27/09) the dollar on the USDX is 79.90. That is the dollar index where six other currencies are weighted and compared to the dollar. We not too long ago called a top at 89.50. The dollar has been unable to break above 81 for several weeks, which tells us the dollar is headed lower, perhaps sharply lower, to its former low of 71.18 before the year is out – and, perhaps much sooner. If you remember in the first two quarters of 2008, all over the world, vendors, businesses and others were refusing to take dollars, which is going to happen again. That could be a catalyst that could bring on a bank holiday. There is no question that the Fed and the Treasury will inflate until they cannot anymore. Foreigners will be looking at enormous losses and all dollar denominated debt held by foreigners could be dumped. Another event that could case a bank holiday. As that happens the cost of imports and the resultant inflation would skyrocket, as US interest rates soar. These are very probable scenarios..

American citizens owe massive debt to the world. Total debt to GDP is 370%. It was only 260% in 1929. In order to pay this off government spending would have to be cut by 80% and taxes would have to be raised to 80%. We see neither happening. As we said previously there will come a time over the next few years that all currencies will be devalued against one another and that all defaulted debt will be settled. All US bankers, Wall Street, Washington and the Fed are doing is trying to gain time, a fruitless pursuit. Debt is some 14% of GDP, and budget deficits are growing. Is it any wonder that foreign buyers of dollar denominated assets are disappearing?

Mounting job losses and other economic realities caught up with Americans in June, pushing down a key barometer of consumer sentiment after a streak of gains built on glimmers of hope.

Some economists say the reality check offered by yesterday's report from the New York-based Conference Board may not augur well for spending in the critical months ahead.

The Conference Board said its Consumer Confidence Index now stands at 49.3, down from its revised May level of 54.8.

U.S. options trading rose 4.6 percent during the first half of the year and headed for a seventh consecutive annual record as investors embrace computer-driven strategies and shun private transactions.

About 1.82 billion contracts linked to stocks, indexes and exchange-traded funds have changed hands in 2009, according to the Options Clearing Corp., which tracks trading on U.S. exchanges. During all of 2008, 3.28 billion traded. Average daily volume has climbed 5.4 percent to 14.6 million this year.

Monday, July 6, 2009

Cap & Trade/Carbon Tax Bill Will Cost US Famlies 7K Per Year

Environment & Climate News > July 2009
Environment > Energy
Email a Friend
Written By: ECN Staff
Published In: Environment & Climate News > July 2009
Publication date: 07/01/2009
Publisher: The Heartland Institute
http://www.heartland.org/publications/environment%20climate/article/25508/Economic_Studies_Support_Leaked_Memo.html

Numerous economic studies support a leaked memo from the Obama administration that said restricting carbon dioxide emissions will have a severe negative impact on the U.S. economy.

Applying the U.S. Energy Information Administration’s economic forecasting model, Science Applications International Corporation reports reducing U.S. carbon dioxide emissions 70 percent by 2050 could kill 4 million U.S. jobs, cause gasoline and electricity prices to more than double, and reduce household income by more than $7,000 each and every year.

The Congressional Budget Office reports reducing U.S. carbon dioxide emissions a mere 15 percent would cut household incomes 3 percent, costing a family making $50,000 per year $1,500 in lost income each year.

A Massachusetts Institute of Technology study reports similar economic costs, also finding U.S. reductions will do little good unless China and other developing nations reduce their emissions.

— James M. Taylor

Cap and Trade is Nothing but Obama Tax

June 25, 2009
http://www.rightpundits.com/?p=4171

So what the heck is Cap and Trade? It depends on who you listen to. The Democrats in the house have put cap and trade legislation on the fast track through the House. It is safe to say the Democrats are willing to destroy the discipline of economics to make it law.

The goal of cap and trade is to steadily reduce carbon dioxide and other (so called) greenhouse gas emissions spread out to the economy as a whole in a lowest cost-effective manner. (Warning-Never trust the government when they use the words cost and effective together.)

The cap is a scheme to set a limit on the amount of greenhouse gas that companies can emit. The company is given an “Emissions Permit” for every ton of carbon dioxide (humans give off carbon dioxide) releases into the atmosphere. The government sets the limit (Cap) that a company is allowed to emit (pollute). Over time the limits will become stricter thus allowing less and less gases until the ultimate reduction goals are met. Sounds like a good plan. But wait.

The trade is the kicker. Companies that reduce their emissions below the required limit can sell their extra “Emissions Permit” to companies that can’t make the reductions. The theory is that this will set a level of overall reductions and rewards the most efficient companies ensuring that the cap is met at the lowest cost to the economy.

(Translation: you and I will see an increase in gasoline and home heating. It does not take into account that certain regions and populations will be more severely hit than others — manufacturing states more than service states; coal producing states more than states that rely on hydro or natural gas. And Low-income Americans, who devote more of their disposable income to energy, have more to lose than high-income families.)

The profits would create a large revenue stream to be used to achieve critical public policy objectives related to climate change (called weather) and economic development. (If we put this money in a “Lockbox” it might work, but the revenue will be siphoned into the general fund like social security) The government could “grandfather” allowances to the polluting firms by handing them our free based on both historic and or projected emissions.

Simply put, the companies that do the least to reduce pollution will still benefit because all they have to do is buy more “Emissions Permit” and guess who pays the cost for all this magic. You are correct if you said the consumer.

Only in the mind of the idiots in Washington, you know the same people that want to fix health insurance by screwing up health care and have given us social security, the war on poverty, income tax, earned income credit and food stamps wants to pretend that cap and trade will really work.

The Congressional Budget Office has said cap and trade would cost the average household only $175 a year by 2020. After 2020 the toughest restrictions kick in and as the cap is tightened, companies will be stripped of initial “Emissions Permits’ to offset their emissions. As I said it sounds good at first until you figure out that is no real reduction in emissions. Cap and Trade is simply a huge tax and an unnecessary increase in fuel for the consumer. Some say the cost is closer to $3000 per person.

While the Democrats have promised cap and trade won’t put the burden on the homeowner. Republicans offered three amendments: one to suspend the program if gas hit $5 a gallon; one to suspend the program if electricity prices rose 10% over 2009; and one to suspend the program if unemployment rates hit 15%. Democrats defeated all of them. So much for bipartisanship

This whole scheme is based on cost estimates from unreliable models predicting climate change. (Do you really want people who can’t tell us if it rained yesterday, determining climate change?) Britain’s Taxpayer Alliance estimated the average cost per family for Green Taxes is $1300 a month. Don’t be duped, Cap and Trade is nothing but an expensive unnecessary Obama Tax.

Cap and Trade Will Lead to Capital Flight

Posted by Ron Paul (06-29-2009, 01:04 PM)
http://www.house.gov/htbin/blog_inc?BLOG,tx14_paul,blog,999,All,Item%20not%20found,ID=090629_3005,TEMPLATE=postingdetail.shtml

In my last column, I joked that with public spending out of control and the piling on of the international bailout bill, economic collapse seems to be the goal of Congress. It is getting harder to joke about such a thing however, as the non-partisan General Accounting Office (GAO) has estimated that the administration’s health care plan would actually cost over a trillion dollars. This reality check may have given us a temporary reprieve on this particular disastrous policy, however an equally disastrous energy policy reared its ugly head on Capitol Hill last week.

The Cap and Trade Bill HR 2454 was voted on last Friday. Proponents claim this bill will help the environment, but what it really does is put another nail in the economy’s coffin. The idea is to establish a national level of carbon dioxide emissions, and sell pollution permits to industry. HR 2454 also gives federal bureaucrats new power to regulate a wide variety of household appliances, such as light bulbs and refrigerators, and further distorts the market by providing more of your tax money to auto companies.

The administration has pointed to Spain as a shining example of this type of progressive energy policy. Spain has been massively diverting capital from the private sector into politically favored environmental projects for the better part of a decade, and many in Washington apparently like what they see. However, under no circumstances should anyone serious about economic recovery emulate an economy that is now approaching 20 percent unemployment, where every green job created, eliminated 2.2 real jobs and cost around $800,000 each!

The real inconvenient truth is that the cost of government regulations, taxes, fees, red tape and bureaucracy is a considerable expense that has to be considered when companies decide where to do business and how many people they can afford to hire. Increasing governmental burden directly causes capital flight and job losses, as Spain has learned. In this global economy its easy enough for businesses to relocate to countries that are more politically friendly to economic growth. If our government continues to kick the economy while its down, it will be a long time before it gets back up. In fact, jobs are much more likely to go overseas, compounding our problems.

And for what? Contrary to claims repeated over and over, there is no consensus in the scientific community that global warming is getting worse or that it is manmade. In fact over 30,000 scientists signed a petition recently directly disputing the claims on which this policy is based. Legitimate environmental claims should instead be directed towards the public sector. The government, especially the military, is the most serious polluter in the country, and is exempt from most EPA regulations. Meanwhile Washington bureaucrats have classified the very air we exhale as a pollutant and have gone unchallenged in this incredible assertion. The logical consequence is that there will come a time when we will have to buy a government permit just to emit carbon dioxide into the atmosphere from our own lungs!

The events on Capitol Hill last week just demonstrate Washington’s audacity in manufacturing problems just so they can expand government power to solve them.

Here's How Bad It Can Get

By Howard S. Katz
Posted Monday, 29 June 2009
http://news.goldseek.com/GoldSeek/1246283054.php

Well people, we are here. I am here. Gold is here.

But the question, dear reader, is are you here?

Gold is going to turn and punch through the $1000 barrier like it was not there. The U.S. dollar is going to drop like a stone. And yet, the vast majority of people are walking around in a daze. When I talk to ordinary Americans, they tell me that things are bad. This is their way of agreeing with the consensus media position of last fall which confuses falling prices with economic bad and buys the whole media line of that time.

You want to see bad? You are going to see bad. But it is not the bad of falling prices. By the time the current Administration is over, the average American will beg for falling prices. No, we are going to see the bad of rising prices, as they have just seen in Zimbabwe.

Do you know what has happened in Zimbabwe over the past few years? The dictator of the country engaged in a massive campaign of printing money. Cato has an interesting article on it. In one month, November 2008, prices (in terms of Zimbabwe dollars) were going up at a rate of 79,600,000,000%. That is another way of saying that prices were multiplying by (a little less than) 800 million times per month. That is, they were doubling every day.

It became impossible to earn money in Zimbabwe because no matter how hard you worked and no matter how much you earned, the amount of goods you could buy dropped to almost nothing. People escaped over the border to South Africa to earn a little (real) money to buy food for their families. There are pictures of starving Zimbabweans who are little more than skin and bones. A law was passed saying that you could not draw your own money out of your bank account in amounts of more than $2 per day (in U.S. money). Finally, in late 2008, the hospital workers walked off their jobs because their salaries had dropped to little more than zero. And then a wave of cholera swept the nation. That seemed to be the trigger. The people of Zimbabwe finally rose up against the evil dictator Mugabe and put a stop to his rule and to the new issues of money. Today U.S. dollars are circulating as the Zimbabwe currency.

Now things are not as bad here in the U.S. But they are heading in the same direction. Over the past year, the amount of money in the U.S. has increased by almost exactly $1 trillion. This is a 70% increase from a year ago. And it will cause an approximately 70% increase in prices with a 1-2 year lag time. The greatest price increase in American history was 13.3%, in 1979. One year later, Americans threw the party in power out of office and instituted a political revolution. I will give you three guesses about what will happen in 2012.

The thing you have to keep firmly in mind is that there are many people in the world who want to steal your wealth. They go about it in many ways. The common thief is the most widely known, but he is not very successful. The police come and lock him away. As a result, more sophisticated methods of stealing are developed. For example, during the Middle Ages, the average person was reduced to being a serf. This meant that he had to go into the occupation of his father and was not allowed to quit his job. His feudal lord allowed him a bare subsistence and took the rest for himself. This was considered legal until, in the 17th century, the people rose up, established a democracy and voted in a Bill of Rights.

Ever since that time, a group of evil people have been trying to reestablish the hold which the medieval aristocracy had over their serfs. They have only been partially successful. Here in the United States, this group succeeded in obtaining the special privilege of printing money (i.e., of doing what would be called counterfeiting if anyone else did it). This was enacted on March 9, 1933 (The Emergency Banking Bill of 1933), the very first act of the new F.D.R. Administration. This gave the commercial bankers the privilege to create money. Savings banks got the privilege in the 1980s. And the banks’ big corporate loan customers benefit from the privilege indirectly (via lower interest rates). In a general sense, people who get special privileges from the government which enable them to steal your wealth are called a power structure. A power structure should be thought of as a watered down version of the medieval aristocracy. They are always dangerous. They want your wealth, and they want your freedom.

As noted, the power structure in the United States today operates by issuing paper money. They donate to both political parties and thereby get their agents installed as economic advisors. For example, Henry Paulson was the agent of Goldman Sachs, installed as the economic advisor to President Bush. It seems to run in the Bush family to know nothing about economics.

Greenspan, to curry favor with the power structure, eased credit from 6% in 2000 to 1% in 2003. At the same time he printed large amounts of money. This caused the housing bubble, which, for quite a while, made lots of money for Goldman Sachs and many other banks and Wall Street firms. It also made houses too expensive for the average American to afford. When there was finally a pause in the printing of money, housing prices collapsed. This caused what is called the sub-prime crisis and revealed Goldman Sachs and the other Wall Street houses for what they were – a collection of frauds. `

It was the number one priority of Henry Paulson to prevent the collapse of his old buddies. They were in (a well deserved) crisis. So he ran to President Bush and shouted that the country was in crisis. Bush picked it up. The media picked it up. There was an atmosphere of hysteria created, and using this atmosphere of hysteria the power structure rammed through the bank bailout of October 2008.

This was called a taxpayer bailout of the banks, but there was no tax increase associated with it, and the media’s reference to it as a taxpayer bailout was another in a layer of lies. The average American did pay for the money given to the banks and Wall Street, but not via a tax increase. In fact, the money was created out of nothing by the Federal Reserve from Sept. to Dec. of last year as you can see in the above chart.

At the present time, it is better to use the monetary base as a measure of what is going on because the Federal Reserve is lying about the money supply. They are reporting the nation’s money supply as smaller than the monetary base when in fact the base is a part of the money supply.

Liar, liar, pants on fire.

So to sum up what is happening, the modern American power structure is trying to rob you. They squandered enormous amounts of wealth in the early years of this decade (because they are incompetent fools). They don’t want to pay for it. They want you to pay for it. That was the “crisis” of 2008. Their technique is to control both parties via campaign donations and get whoever is elected to steal from you for their benefit.

But their only method of stealing is via the paper money process. That is, they are counterfeiters, not conventional thieves. This is a weakness. It means that you can protect yourself from the depreciation of the (paper) currency by using gold as a store of value.

But if too many Americans protect themselves, then the power structure cannot benefit. Therefore, they dominate the media and get a cartload of lies dumped on the American people. Let us examine some of these lies:

1) The decline in housing prices was an unmitigated disaster. Of course, when a house changes hands there is a buyer and a seller. The buyer wants a lower price; the seller wants a higher price. To say that lower prices are bad is to say that home buyers are not a part of America. And the truth is that they are just as important to the country as anyone else. In fact, in March 2007 housing prices had gotten too high, and homes were not affordable for the average person. The housing decline of 2007-08 was a good thing.

2) The decline in gasoline prices from over $4.00/gal in July 2008to $1.60/gal around the turn of the year did not happen. After all the screaming and yelling about $4.00 gas over last summer, you might have thought that the media would give a big hurrah to sharply lower gas prices in 2009. But this would have been very embarrassing for them. After all, if the high gas prices were caused by the evil nature of the oil companies, then were the low gas prices caused by the good nature of the oil companies? And if the oil companies are evil and have complete control, then how could the decline in prices have happened? That, of course, is the media’s answer. “If we don’t admit that gasoline prices declined in autumn 2008, then it will not have happened.”

3) The imminent threat to the U.S. economy is that prices will decline. Well, I will tell you. With the money supply exploding to the upside, then prices are not going to decline. No how, no way. And anyone who tells you different is either a liar or a fool. (And plenty of both are in ample supply.) The media scared people so badly last year that there was a speculative sell-off. But that just creates opportunity for the intelligent speculator. We can buy as they sell. Watch the commodity market, led by gold, spring back into new all-time high ground. Watch these commodity prices pass through into consumer prices.

Here is the bottom line. To take our wealth, the power structure has to lie to us. Those who believe the power structure (whose voice comes to them via their local newspaper and the TV news) will be robbed. They will not buy gold. They will have their assets in paper money. And they will be destroyed. The few, the proud, the gold bugs…will hold their heads high. The power structure will not have stolen any of their wealth.

The important thing to understand about the Bush Administration is that they panicked and supported the bank bailout of last year, leaving the country with a deficit of over $1 trillion for 2009. The important thing to understand about the Obama Administration is that it has somehow increased spending so as to project trillion dollar deficits as far as the eye can see.

Now here is something that is very important to understand (and yet is understood by virtually no one). Every time the government runs a deficit (of any size at all) it creates money. This began with the origin of democracy (in England in 1689). The new democratic government wanted to spend money like water, as the old monarchical government had done. But unlike the old monarchical government the new democratic government was subject to the legislature, and the legislature was subject to the will of the people. The people said, “NO NEW TAXES.”

So the new government invented the paper money system. The Bank of England was created (1694). It printed up paper money and lent this to the government. The paper money caused an increase in prices. Thus the people paid for the new spending via higher prices for the necessities of life when they had just refused to pay via taxes.

That is the system under which we live. The power structure still exploits us, but it does so by fraud rather than by brute force. Those who understand this can be free men and keep for themselves the product of their labor.

By my figuring, the U.S. money supply has increased from $1.3 trillion in May 2008 to $2.3 trillion in May 2009 (not the reported figure). This is a 70% increase There will be (approximately) another $trillion created in 2010 to finance that deficit, taking the money supply up to $3.3 trillion, then another $trillion in 2011 up to $4.3 trillion and then another $trillion in 2012 up to $5.3 trillion. In 2013, there is at least hope for a new administration which will balance the budget.

You know how hard it is to cut a budget deficit. One side screams against any cut in government spending. The other side screams against any increase in taxes. We have just estimated a 4-fold increase in the money supply over the next 4 years. Prices follow the money supply by 1-2 years. How would you like to see your everyday prices multiply 4-fold by 2014? Gas at $10/gallon, the median home price at $800,000, the Wall Street Journal at $8.00/day. Notice that the Wall Street Journal keeps warning us of the threat of deflation but keeps raising its price. Its business department is too smart to believe what is printed in their own paper.

I consider myself a small voice in this economic wilderness to warn people how to protect themselves from the power structure’s plan to steal their wealth. To predict $4,000 gold by 2014 is in the bag, with worse to come afterwards. To this end, I publish an economic letter called the One-handed Economist and ask the modest subscription fee of $300/year. (It will probably go up, in line with general prices, to $400 by 2010. The WSJ costs $624 at the newsstand, and they are telling you lies. Lies would be too expensive even at half the price.) If you want a subscription, then visit my web site, www.thegoldbug.net. You can read my blog at no charge. This week’s blog is “The White Race,” a comment on the nomination of Sonia Sotomayor to the Supreme Court.

Thank you for your interest.