Wednesday, October 27, 2010

Time Magazine: Prospect Of Civil War In U.S. “Doesn’t Seem That Far Fetched”

Paul Joseph Watson
October 20, 2010

With protesters in France entering a seventh day of strikes and demonstrations against draconian austerity measures, many political observers in the U.S. are now wondering how long it will be before similar scenes unfold on American streets, with even Time Magazine now conceding that the prospect of a civil war in the States “doesn’t seem that far fetched”.

To be clear, Stephen Gandel’s article entitled Will the Federal Reserve Cause a Civil War? largely dismisses the possibility that the Fed’s upcoming November 3rd meeting, during which Ben Bernanke is expected to announce a fresh round of money printing, will prompt national uproar, but it doesn’t exactly debunk the notion of longer term social dislocation as a backlash to the crumbling economy, as many are now forecasting.

As we highlighted yesterday in a piece that was later picked up by the Drudge Report, it’s only a matter of time before Americans are hit with almost identical austerity measures to those that have caused the French to set up fuel blockades, stage running battles with riot police, halt air and rail travel, and virtually shut down some areas of the country.

The question remains – how will Americans react if the Obama administration pushes ahead with its plan to seize all private 401(k) pensions, which will be swallowed up by the Social Security Administration under the banner of mandatory Guaranteed Retirement Accounts? How will Americans react to the upcoming announcement that the Federal Reserve will further eviscerate the value of the dollar by purchasing junk assets from big banks at exorbitant prices with money printed out of thin air?

Time Magazine, which as a guardian of the establishment would normally be expected to disparage the potential of mass civil disobedience, actually lends the notion some spotlight by linking to a Zero Hedge story which paraphrased economic forecaster David Rosenberg, who warns that the Fed’s plan for more quantitative easing, “positions US society one step closer to civil war if not worse.”

The article also features a quote from a Washington’s Blog piece which warns that the Fed’s policies could lead to the very destruction of the republic.

“In a very real sense, Bernanke is throwing Granny and Grandpa down the stairs – on purpose. He is literally threatening those at the lower end of the economic strata, along with all who are retired, with starvation and death, and in a just nation where the rule of law controlled instead of being abused by the kleptocrats he would be facing charges of Seditious Conspiracy, as his policies will inevitably lead to the destruction of our republic.”

Lending the notion credence, Gandel writes, “With the Tea Party gaining followers, the idea of civil war over economic issues doesn’t seem that far-fetched these days.”

Yes, you read that correctly. Even Time Magazine is now conceding that the current economic course of the nation could lead to outright civil war and revolution.

Gandel finishes the article by leaving the prospect of widespread civil unrest as an open question.

“So it seems clear what the Fed is likely to do,” he writes. “How the economy, the militias and the rest of us react is up in the air. The count down is on. T minus 15 days to Fedamageddon. See you there, hopefully.”

Of course, people like Gerald Celente and a host of other economic forecasters have been predicting civil unrest, food riots and tax rebellions for the past two years, but to have Time Magazine seriously entertain the notion of civil war in the United States is a shocking reminder of just how close to the precipice we now stand.

Numerous forecasters, governments, spy agencies, and international bodies are predicting mass riots and unrest in response to a worsening economic picture.

In November 2008, right as the economic implosion was unraveling, the U.S. Army War College released a white paper called Known Unknowns: Unconventional ‘Strategic Shocks’ in Defense Strategy Development. The report warned that the military must be prepared for a “violent, strategic dislocation inside the United States,” which could be provoked by “unforeseen economic collapse,” “purposeful domestic resistance,” “pervasive public health emergencies” or “loss of functioning political and legal order.” The “widespread civil violence,” the document said, “would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security.”

A British Ministry of Defence report struck a similar tone when it predicted that within 30 years, the growing gap between the super rich and the middle class, along with an urban underclass threatening social order would mean, “The world’s middle classes might unite, using access to knowledge, resources and skills to shape transnational processes in their own class interest,” and that, “The middle classes could become a revolutionary class.”

How Americans will react to what many see as a make or break moment for the US economy, the Fed’s announcement on November 3rd, largely depends on how well they understand the fact that their financial future and that of their children now hangs in the balance like never before.

As the Economic Collapse Blog points out, QE2 represents the biggest bank robbery in history, and is nothing less than another huge transfer of wealth from American taxpayers to big banks. The money Bernanke prints out of thin air, which will further devalue the greenback and every dollar earned or saved by American citizens, will be used to purchase large quantities of “troubled assets” from U.S. banks at well above market price. Small banks will be allowed to wither and die, whereas the huge megaliths will collect mountains of free money at the expense of hard working Americans.

The long term impact of the Fed buying these toxic junk assets with money printed out of thin air will be an inflationary holocaust that does nothing to rescue the US economy but everything to depreciate the very real assets of the American taxpayer.

We are already on the road to serious inflation and the Federal Reserve has not even fired up the money hoses yet. So what is going to happen after they pump trillions more into the economy?

Printing more money and giving it to the banks is not going to solve our economic problems. It is just going to make them worse.

But unfortunately, American voters get no say about any of this. Our national monetary policy is in the hands of an unelected central bank that does pretty much whatever it wants.

If as many Americans were aware of what the Federal Reserve is about to do with their financial future as are knowledgeable about the intricacies of Dancing with the Stars, then the “civil war” that even Time Magazine is now presenting as a justifiable response to the crisis would be a very plausible prospect.

As it stands, according to the majority of voters in our poll on Prison, Americans will react to the situation not by organizing fuel blockades, marching in the streets and shutting down the country, but by scratching their butts and flipping the TV channel.

Watch Matt Taibbi’s explanation of what the Fed is about to do with your money.

Unfair Trade: 10 Questions About Our Globalized Economy That Neither Conservative Or Liberal Supporters Of Current U.S. Trade Policies Can Answer

The Economic Collapse
Oct 20, 2010

Most Americans still seem to be convinced that “free trade” is “fair trade” and that to be against current U.S. trade policies and globalization means that you are anti-business, anti-free enterprise and anti-American. In the mainstream media, any unfair trade practices that are brought up are treated as minor nuisances that will be ironed out as we march towards the glorious globalized economy of the future. But the truth is that the kind of world trade that is going on today is neither “free” nor is it “fair”. Major exporting countries around the globe are openly manipulating their currencies, they are heavily subsidizing their major industries and they are erecting huge tariffs against many U.S. goods in order to protect their own domestic companies. Meanwhile, U.S. consumers enjoy mountains of cheap goods, but thousands of factories, hundreds of thousands of jobs and hundreds of billions of dollars of national wealth leave our country for good every year. So how in the world is that good for us? It is kind of like ripping apart your house to get more firewood just to keep the fire going. Eventually you aren’t going to have a house anymore.

The other day, my article entitled “The Number One U.S. Export To China: Waste Paper And Scrap Metal” really struck a chord with many advocates of current U.S. trade practices. For example, one reader identified only as “Someone” left a comment that was typical of many that were posted on the article….

“The author of this article has shown no knowledge of economics.”

Well, it doesn’t take a genius to look at the numbers and figure out that something is wrong. In 1985, the U.S. trade deficit with China was 6 million dollars for the entire year. In the month of August alone, the U.S. trade deficit with China was over 28 billion dollars.

Can anyone else spot a disturbing trend there?

Years ago, I was also one of those who believed that because I was “pro-business” that also meant that I had to defend “free trade” and trade agreements such as NAFTA and the WTO.

After all, I didn’t want to be labeled “anti-business” or “anti-American” did I?

But the truth is that merging our economy with socialist and communist economies that allow their workers to be paid slave labor wages is not “pro-business” and it certainly is not “pro-American”. Allowing entire U.S. industries to be destroyed because of the unfair predatory trade practices of socialist and communist economies is not “pro-business” and it certainly is not “pro-American”.

If you want to have “free trade”, then by definition you must have a level playing field. For example, trade with Canada (although not perfect) is mostly a very, very good thing. Trade with China is not.

Many readers have suggested that all we have to do is get rid of the horrific regulations and taxes that are holding U.S. businesses back and our trade situation will be fixed.

And yes, the U.S. government has piled so many rules, so many taxes and so much paperwork on U.S. businesses that it is becoming very, very difficult to operate a profitable business inside the United States. There has never been a more oppressive environment for business in the United States than we have today.

But would fixing that solve all our trade problems? Would fixing that bring back all of our factories and jobs?

No, but of course it would help to an extent.

However, the reality is that unless we address the fundamental problems with global trade we are in a heap of trouble.

Unfortunately, not all of my readers agree. One reader named Puzzled was quite blunt is his analysis of my recent article on trade: “I’d recommend a class on basic economics.” Well, it turns out that I did take a number of courses in economics at one of the finest universities in the United States, but our education system has become so dumbed-down that I didn’t learn much.

So let’s hear from someone who is considered to be an expert in economics.

Just how dangerous is the trade deficit? Well, world famous investor Warren Buffett once put it this way….

“The U.S trade deficit is a bigger threat to the domestic economy than either the federal budget deficit or consumer debt and could lead to political turmoil… Right now, the rest of the world owns $3 trillion more of us than we own of them.”

Advocates of current U.S. trade policies usually respond by saying something like this….

“The global economy is here to stay so you better get used to it. There is no going back. It is a good thing for factories and jobs to be going to China because they can produce things cheaper than we can. We benefit because we get to enjoy large amounts of cheap products. Yes, American workers are going to have a significantly reduced standard of living, but this is necessary as we merge all the countries of the world into a globalized economy which will be better for everyone in the end. After all, it is better for goods and services to cross borders than it is for armies to cross borders. U.S. citizens are just going to have to learn to live within their means. If the United States cannot provide jobs for all of their people in this new global economy, then maybe they need to start implementing some population control measures. Quit blaming China because they aren’t doing anything wrong. Everyone knows that free trade is always the best alternative. Are you an idiot? Go take a class in basic economics you moron.”

The following is a sampling of actual comments that have been recently posted in response to my articles on globalism by advocates of current U.S. trade policies.

A reader named Frodo apparently thinks that I am “anti-freedom”….

You are totally wrong about free trade. “free trade” is part of “freedom” like the freedom of consumers to buy stuff they want made somewhere else.

A reader named John seems convinced that that United States has never lost even a single job to China….

No American has ever lost a job to China: what happens is due to USA govt industrial policy (get big or get out), new jobs are placed in new factories where there will be better stability in the future – China. Those “lost jobs” are not coming back because like buggy whips, we don’t use them anymore.

A reader named Dave believes that “free trade” is precisely what we need to revitalize manufacturing in America again….

Free trade is EXACTLY what’s needed if we ever hope to get manufacturing back in North America.

In the face of such overwhelming logic how can I continue to maintain that the current state of global trade is deeply flawed and deeply broken?

Well, I have a challenge for advocates of current U.S. trade policies.

I challenge you to answer the following 10 questions about our globalized economy. Please answer these questions and tell me why I am wrong….

#1 How can trade be considered “fair” when other major exporting nations openly manipulate their currencies, provide massive subsidies for their national industries and erect massive tariffs against many U.S. goods while we allow them to wipe out many of our domestic industries by flooding our shores with endless amounts of cheap products?

#2 How is it possible that it is good for American workers to be merged into a global labor pool where they must compete for jobs with workers on the other side of the globe that make less than ten percent of what an average American worker makes?

#3 As millions of manufacturing jobs continue to flow to where “labor is cheaper”, can you please explain how in the world we are going to provide nearly enough jobs for blue collar American workers?

#4 If there are not nearly enough jobs for everyone, then millions upon millions of Americans will not be able to take care of themselves. We simply are not going to let them starve to death in the streets. Already, over 41 million Americans are on food stamps. One way or another we are going to pay to take care of American workers. Either we are going to give them jobs or we are going to give them welfare. Are you willing to have your taxes raised substantially to pay for all of the welfare cases that “free trade” is creating?

#5 As U.S. workers are merged into the new global labor pool, can you please explain how wages will not be forced down and the standard of living for average, hard-working Americans will not diminish substantially?

#6 How can any conservative ever justify trading with a nation (China) that has a “one-child policy” and that has mobile abortion vans driving around the country to enforce this mandate?

#7 How can any liberal ever justify trading with a nation (China) that is rapidly becoming an environmental wasteland and where millions of people work in horrific conditions for what is essentially slave labor pay?

#8 The House National Security Oversight Subcommittee recently heard stunning testimony from a number of experts that told them that the rapid decline of manufacturing in the United States has resulted in America losing its edge in numerous industries that are absolutely vital to national security. How is it possible that putting our national security in such peril is a “good thing”?

#9 The United States spends 40 to 50 billion more on goods and services from the rest of the world each month than they spend on goods and services from us. That means that the United States is becoming 40 to 50 billion dollars poorer each and every month. How is that good for the U.S. economy?

#10 Over the past few decades, the communist Chinese have been able to accumulate approximately $2.5 trillion in foreign currency reserves, and the U.S. government now owes them close to 900 million dollars. We constantly have to send top government officials over there to beg them to continue to lend us money. This would have never happened without the insane trade policies of the last several decades. So how in the world can advocates of current U.S. trade policies ever justify this?

VIDEO: Corrupt Empire 10/27/10

VIDEO: Here's Why The Androgynous Corporate Fascist Business Model Is A Total Failure

The Banking 'Crisis'...It's A Big Club And You Ain't In It...

Illuminati News
David Icke's Newsletter
March 23, 2008

Hello all ...
After nearly 20 years of full time research into the true workings of the world, the last few weeks have been real head-shakers for me. Talk about watching a movie.

And it's not even a new movie - just a remake of endless of its kind over hundreds of years. They were once in silent black and white and now in full-blown computer-enhanced digital colour. The movie is called 'The Banking Crisis' and among its many sequels and spin-offs are 'The Recession', 'The Slump', 'The Crash', and, in it's latest version, 'The Credit Crunch'.

All of them star the insider actors and actresses from the same elite families and all have but one prime objective: human control. Everything else is decoration, diversion and camouflage.

I'll summarise first what I have been saying since the early 1990s about the 'economic cycle' of 'boom and bust' and then have a look at what is happening today from that perspective.

It is, lest we forget, the private banks that bring 'money' into circulation by issuing lines of 'credit', which is 'money' that has never, does not, and will never exist. Money is merely mythical figures on a screen that is only worth anything because we take it seriously and believe it to be worth anything. It only has purchasing power because the receiver believes it has purchasing power. It's all a mind game.

When you take out a loan from a bank (put more 'money' into circulation through accepting credit) the bank doesn't print any notes, mint any coins or move precious metals anywhere. It simply types into your computer account the sum of mythical figures-on-a-screen 'credit' that you have agreed to be 'loaned'.

In fact, the bank has loaned you nothing except figures on a computer file and yet from that moment you start paying interest on money that has never, does not, and will never exist. Banking is nothing more than legalised fraud and the biggest organised crime in history. The Mafia are petty criminals by comparison.

You can symbolise the modus operandi as a fisherman (the elite Illuminati banking families) with his rod (control of the banking system, stockmarkets, governments, mainstream media and, most crucially, the 'creation' and distribution of 'money' or 'credit').

In stage one, the banking elite cast the fishing line by keeping interest rates low and making it easy for almost anyone to get 'credit'. This has the effect of putting lots of 'money' into circulation and increases the ability of business and people to buy things.

This obviously increases 'consumer demand' and business takes out more loans for plant, machinery and expansion, and employs more staff, to meet that demand. We now have what they call 'economic prosperity' or a 'boom', although there is always an underclass that never benefits.

During such 'boom times', people, like business, feel more confident and vast numbers buy a bigger house, bigger car and have more expensive holidays - paid for invariably by loans or line of credit.

In short, during a 'boom' business and people get themselves into more debt and even those who don't secure bank loans bash their credit card to increase their purchasing power in the face of mass advertising (mind control) to buy, buy, buy.

But this 'prosperity' is only made possible by the increases in credit ('money' in circulation) that allows the increase in spending. And who controls that? The banks controlled by the Illuminati banking families like the Rothschilds, Rockefellers and the rest.

When the world is saturated in credit (debt on 'money' that doesn't exist) the banking cartel triggers stage two of what ignorant economists and economic correspondents call the 'economic cycle'. Continuing with the fisherman analogy, they reel in the line and net their fish - us.

They do this by reducing the amount of credit they issue and calling in many loans already on their books. This has the effect of taking 'money' - purchasing power - out of circulation and transforms the manufactured 'boom' into a manufactured 'bust'.

With less money in circulation, people can buy less and so businesses need to produce less. This leads to big increases in unemployment, bankruptcy and people losing their homes because those businesses and people are no longer able to earn the income necessary to service the loans they took out during the 'good times'.
But, of course, when they accepted those loans of non-existent 'money' they had to sign over as security their wealth that did exist - their home, car, business or land - and so when they fail to 'repay' their 'loans' of credit the banks seize their wealth that does exist in exchange for not paying back 'money' that has never existed, except in theory.

Yes, I know it's insane to you and me, but from the perspective of an economic system created for the simple purpose of human control and enslavement it is perfectly sane. To the elite families behind it all, it is sheer genius and a crucial means to their end.

In the UK, a nation of some 60 million compared with America's 300 million, the debt levels have similarly soared to record highs. Personal debt in Britain passed £1 trillion ($2 trillion) in 2004, just seven years after it passed through the half a trillion barrier. It has since expanded by another nearly £400 billion and Britain's personal debt is increasing by more than £1 million every four minutes.

The banking cartel has taken the debt to record levels because it is preparing for a record trawl. It is the vehicle for the Illuminati families to create the chaos from which they can offer their solution - a new global economic system which gives them more control than ever before. They want this eventually to be administered by a world central bank via a single world currency that would be purely electronic with no cash in circulation at all.

This would give total control (apart from barter) over if or what you purchase to a global computer system that would be programmed to decide if it would accept your electronic card or, in time, the microchip under your skin. Dissidents of the system would soon be off the computer's Christmas card list, that's for sure.
Using the techniques I have described, these interbreeding families have trawled and netted the 'physical' wealth of the world while giving the masses worthless bits of paper and figures on a screen to make them think they are sharing in the whole deal. But they are not and, whenever the genetic cartel decrees, the people realise how tenuous their perceived 'prosperity' really was.

But, come the next 'boom', they fall for it all over again. Ahhhhhhh!

All this manipulation is made possible by allowing private banks, ultimately controlled by the same family bloodlines, to control how much credit or 'money' is in circulation, and by the mass brainwashing of the population to 'spend, spend, spend' to seek a lifestyle that the system, again controlled by the same cartel, has told them is the measurement of their 'success' and 'happiness'.

As Robert H. Hemphill, a one-time credit manager at the Federal Reserve Bank in Atlanta once said:

'This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous, if not, we starve. We are absolutely without a permanent money system.

When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilisation may collapse, unless it becomes widely understood and the defects remedied very soon.'

And so to today's 'banking crisis'. It's a classic.

Since the last 'economic downturn' (trawl of the real wealth) there has been a global orgy in 'consumer debt' (we are no longer people, we are 'consumers', just a cog in the economic machinery). By last year, Americans owed a staggering $16 trillion dollars - that's $2.4 trillion in personal loans and $13.6 trillion borrowed for their homes.

This is what the current financial mayhem is all about - another massive stepping stone to the control of every man, woman and child on the planet.

Once you know that, the apparently crazy and scandalous decisions made by the banking system to trigger the current crisis take on a new perspective. These include the high-risk sub-prime mortgage frenzy which made vast numbers of loans to people who were highly likely to default - and have.

It was a disaster waiting to happen - but only for those who lost their homes, not for the families controlling the banking system.

But wait, I can hear people say, banks are going broke and even major players like Bear Stearns have been on the brink. Surely the Illuminati families wouldn't want that? Oh, but they would because of the contribution it makes to their overall agenda.

It is important to stress the difference between running a bank within the game and owning the game itself. Take the symbolic example of the board game called Monopoly. Different people come and go, playing the game and 'winning' and 'losing'.

But the game itself can never 'lose' because it is the board on which everyone has to play, winners and losers, and it is all the houses, hotels, instruction cards and rules that they have to play with and abide by. Players of the game may use its board, money and real estate for a while, but the game always gets them back, or the owner of the game does.

Monopoly: he who creates the game controls the rules

Yes, the US bank Bear Stearns saw its share price plummet from more than $150 a share down to almost zero. But who has sought to take advantage of that? The notorious Illuminati operation, J P Morgan Chase, which has offered Bear $2 a share in its takeover bid - and the Illuminati-created and controlled Federal Reserve, the privately-owned 'central bank' of America, has made the Morgan takeover virtually risk-free by guaranteeing up to $30 billion of Bear's mortgages and other assets.

It's a stitch-up. Some banks will go to the wall and either disappear or be absorbed for cents on the dollar by other Illuminati operations and it suits the agenda to install fewer, but bigger, banks because that reduces the number of people with any influence on competition and financial events in general.

It is sobering to read this Internet account of the engineered Wall Street Crash of 1929 which led to the Great depression of the 1930s, a time that some commentators are claiming we may be about to experience again:

'Throughout the 1920s a long boom took stock prices to peaks never before seen. From 1920 to 1929 stocks more than quadrupled in value. Many investors became convinced that stocks were a sure thing and borrowed heavily to invest more money in the market.

But in 1929, the bubble burst and stocks started down an ever more precipitous cliff. In 1932 and 1933, they hit bottom, down about 80% from their highs in the late 1920s. This had sharp effects on the economy. Demand for goods declined because people felt poor because of their losses in the stock market. New investment could not be financed through the sale of stock, because no one would buy the new stock.

But perhaps the most important effect was chaos in the banking system as banks tried to collect on loans made to stockmarket investors whose holdings were now worth little or nothing at all. Worse, many banks had themselves invested depositors' money in the stockmarket. When word spread that banks' assets contained huge uncollectable loans and almost worthless stock certificates, depositors rushed to withdraw their savings. Unable to raise fresh funds from the Federal Reserve System, banks began failing by the hundreds in 1932 and 1933.'

Those hundreds of failing banks were either absorbed for next to nothing by the big banks, which became even richer and more powerful as a result, or they were left to disappear and reduce the potential competition. Individual banks may come and go, but the banking system, the game, is always there.
For '... chaos in the banking system as banks tried to collect on loans made to stockmarket investors whose holdings were now worth little or nothing at all', read sub-prime mortgages and such like that we have now. Imagine the effect of a stockmarket crash today on top of everything else and it's coming, make no mistake. It's all in the script.

America during the banker-created Great Depression

It was no coincidence at all that the crash of the 1930s was unleashed by the Illuminati Federal Reserve making several increases in interest rates to 'cool the stockmarket', nor that the economic collapse brought the Illuminati front man Franklin Roosevelt to the White House with his 'New Deal' to 'solve the crisis'. Instead, he took the United States into World War Two.

What we are seeing is just 'history' (the techniques of mass manipulation) repeating.

After the 'boom' created by low interest rates and unlimited credit since the 1990s, they are crashing the global economy through what is being called the 'Credit Crunch'. Put another way, they put lots of money into circulation (boom) and now they are taking it out again (bust).

This means that there comes a moment when there is simply not enough money in circulation for everyone to pay back their outstanding 'loans'. Suffering and homelessness are built into the system.

Other aspects of this same agenda include:

1) The crashing of the US dollar to prepare for its replacement by a 'North American Union' currency (working title at least, the Amero) which would become the currency of the United States, Canada and Mexico with plans to extend it to the whole of the Americas.

2) Creating such a scale of economic suffering and dependency that people will do anything, at however low the wage, just to survive and with 'outsourcing' and the massive influx of people from poorer countries into places like North America, the UK and the rest of Western Europe, the competition for this low-paid work is being intensified still more (see the video sequence after this article).

Watching the news as the crisis unfolds is like witnessing a car crash in slow motion, or a replay of one you have seen, or read about, many times before; and debt has reached such astronomical proportions that we're right out of seat belts.

Like I say, in the end it's all a mind game based on the manipulation of that mental and emotional state we call 'confidence'. When you control the mainstream media and the leading politicians then controlling the level of 'confidence' is a synch.

When people have confidence in banks, stockmarkets and the strength of the economy in general, they borrow more money, get into more debt, spend more and invest more in things like stocks and shares. The result: there is an economic and stockmarket boom.

When people lose confidence in banks, stockmarkets and the strength of the economy in general, they borrow less money, spend less and invest less in things like stocks and shares. The result: there is an economic and stockmarket 'crisis'.

So tell them everything is wonderful and give them lots of credit and then tell them everything is in chaos and stop their lines of credit. It is so easy when you own the game. As the brilliant American comedian, George Carlin, put it: 'It's big club and you ain't in it' - see video clip at the end of this article.

Many years ago I spoke about all this at a financial conference and afterwards a man who speculated for a living on the commodity markets (deciding if people in 'Third World' countries ate or not) came over to speak to me. He said he didn't believe what I said about manipulation of the system, but he would keep his eyes open from now on.

A few months later I met him again and he was transformed. He said he had noticed that three or four days before a state-of-the-economy statement by the then Federal Reserve chief, Alan Greenspan, the big players in the markets would go to work moving their investments around.

Every time, he said, the result of Greenspan's words was to increase the value of what the big players had been buying and push down what they had been selling. The reason does not need a genius to explain: The big players were colluding in Greenspan's statements.

The way to withdraw as much as possible from the clutches of this economic imprisonment is to get out of debt as much as possible. This is difficult for most people who are buying their homes because the cost is so high compared with their income and savings - and the explosion in house prices was fuelled by the very credit free-for-all that has made initial buying, if not the repayments, so easy.

But in everything else most people do have a choice not to borrow money for things they don't actually need - and that's where so much credit 'money' is spent. If people can't afford something that is not essential then don't buy it if you can't pay cash because otherwise you are mortgaging your life to the banking cartel.

I rented my flat with its one bedroom and little office and I only bought it in the end with a mortgage because it was perfect for my needs and the owner wanted to sell it to someone else if not to me.

I can't afford anything bigger and that's fine because I don't want anything bigger. I have no desire whatsoever for the big-house, big-car lifestyle. I have to laugh when I see people on the Internet claiming that I must be filthy rich because of the big house I own when the 'big house' is a block of small flats, of which I 'own', or the bank does, only one.

But on everything else in my life I have a simple and strict philosophy. If I can't pay cash I don't want it, thanks. Don't let anyone try to sell me trinkets as a symbol of my success, and offer me cheap credit to buy them, because they can stick it all where the sun will never trouble the darkness.

If we don't fall for the trinkets version of 'success' and the lack-of-them version of 'failure', then we reduce massively the dependence on credit to finance our pursuit of what the very system lending us that non-existent money is telling us we must have to be 'successful'.

If you buy the system's version of reality it will eventually devour you, if not always economically then at least in the devouring of your soul.

So we don't have the latest car, fashion or bit of bloody 'bling'. Who gives a shit? What nonsense it all is.

How far we have become disconnected from true wealth and the understanding that life is about more than irrelevant baubles, bangles and beads. As a Native American chief called Seattle is supposed to have said:

'How can you buy or sell the sky, the warmth of the land? The idea is strange to us. If we do not own the freshness of the air and the sparkle of the water, how can you buy them? ...

... We know that the white man does not understand our ways ... he is a stranger who comes in the night and takes from the land whatever he needs. The earth is not his brother, but his enemy, and when he has conquered it, he moves on ...

... He treats his mother, the earth, and his brother, the sky, as things to be bought, plundered, sold like sheep or bright b
eads. His appetite will devour the earth and leave behind only a desert.'

And not just a 'physical' one, but a spiritual one, too. As another Native American saying from the Cree people goes:

'Only after the last tree has been cut down
Only after the last river has been poisoned
Only after the last fish has been caught
Only then will you find you cannot eat money

I first quoted that saying 24 years ago when I was campaigning against environmental destruction. It is getting more relevant by the day.

The gathering homeless of America - exactly as planned

Friday, October 22, 2010

VIDEO: Alex Jones On Russia Today - Americans’ Blood Will Boil In Austerity Backlash

Origins of Fed Explain Financial Collapse

Joan Veon
American Free Press
Oct 22, 2010

In 1913, at 11:45 p.m., on Dec. 23, Congress approved a private corporation designed to form a private corporation, designed to control the monetary system of our country. They moved with a calculated craftiness and deceit to pass legislation that would enslave every American as a debtor to their corporation.

To give you an idea as to where our country is with debt, as of September 2008, the [official] U.S. federal debt had reached approximately $9.7 trillion, or $31,700 per person. [As of October 2010, the national debt now stands at $13.6 trillion.—Ed.] However, when the unfunded liabilities such as Social Security, Medicare, and other social programs are added in, our total debt grows to $59.1 trillion, or $516,348 per household.

In 2005, the total personal debt, consisting of mortgages and consumer loans, was estimated at $11.4 trillion, with total U.S. household assets, including real estate, totaling $62.5 trillion.

Why it is Americans can’t forgive themselves the interest on the debt? Well, we don’t “owe” it to “we the people,” we “owe” it to the Federal Reserve and to foreign governments in the form of U.S. Treasury bills, notes and bonds.

As of two years ago, the top four foreign owners of our debt were: Japan at $592.2 billion, China at $502 billion, United Kingdom at $251.4 billion and oil exporters at $153.9 billion. Other owners of U.S. debt include Brazil, Caribbean Banking Centers, Luxembourg, Hong Kong, Russia, Norway, Germany, Taiwan and Switzerland.

Through the untrustworthy corporate media, economists and other sources, we are told that there are a number of reasons for the financial crisis we are in today. One reason, the ivory tower people claim, was the passage of the Home Ownership Equity Protection Act of 1994, whereby the Federal Reserve was given authority to issue regulations and interest rates over mortgages and home equity lending. Its enactment caused a sharp increase in home-equity lending accompanied by a sharp boost in the subprime mortgage market, from 80,000 subprime loans in 1993 to 790,000 by 1998.

Another reason was the passage of the 1999 Gramm-Leach-Bliley Act, removing all the protection put in place following the 1929 stock market crash. Without such protection, foreign banks, brokerage firms and insurance companies were allowed to buy American-owned banks, brokerage firms and insurance companies.

Additionally, this increased the risk to our economic system by easing regulations on monetary policy. The 45-year low interest rates of 2001-2002, enacted to stimulate the economy following the 9-11 attacks, exacerbated the stress on our economy.

In short, we have been set up. Laws were designed and passed to specifically get us into this dreadful position. We are the sheep being shorn, but our shepherd is not Moses, King David or the Great Shepherd. Now
many of the career-congressmen who supported passage of the above laws will go home and campaign for re-election. It’s incredible that the great media spin machine can provide the cover they need to get re-elected and continue this financial skullduggery.

The bottom line is that unless you know the chicanery of how the Federal Reserve Act was passed in 1913, unless you understand the central banking system that runs almost all the countries of the world and their history of manipulation, deceit, deception, and distortion, you will not be able to hear, see and understand what is happening under your nose.
Note: We believe that Ms. Veon would have agreed that every means possible should be explored to repudiate the national debt, as AFP maintains.—Ed.

Wednesday, October 20, 2010

Democrats Announce Plan to Bribe Seniors with $250 Check as Election Nears

Kurt Nimmo
Tuesday, October 19, 2010

In a cynical move to scrape up votes next month, Democrats mare making a pitch to give Social Security recipients a one-time payment of $250. Democrats insist the bribe is meant to make up for a second year without a cost-of-living increase due to low inflation prior to the Fed’s plan to crank up the printing presses and create inflation.

Earlier this month, Congress failed to approve the Cost of Living Adjustments (COLA), which could total $25 billion for the nation’s more than 50 million Social Security recipients. Congress enacted COLA in 1975 to help Social Security residents keep pace with inflation.

The Federal Reserve is about to resume quantitative easing at the $100 billion-per-month range. Quantitative easing is Fed-speak for increasing the money supply and creating inflation.

Pelosi and Reid say they will introduce the legislation when Congress critters return for the lame-duck session in November. In the meantime, they are using the promise as a campaign pitch. “Instead of helping seniors,” said Pelosi’s office, “Republicans, backed by their allies on Wall Street, are threatening to privatize and cut Social Security, just as they tried to do under President Bush.”

Pelosi neglected to mention that during the 2008 election cycle, Wall Street’s donations were evenly split between Democrats and Republicans. In 2009, Democrat Dick Durbin told a Chicago radio station that banks own Congress and party affiliation is irrelevant. “And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place.”

“The only thing standing in the way of America’s seniors receiving this critical support are Senate Republicans,” said Reid. In fact, 12 Democrats joined 37 Republicans in blocking the $250 “bonus” earlier this year, mostly because they realize it will add more burden to the national debt.

Confronted with the Fed’s determination to crank up the money supply and price inflation, seniors have few options. A meager $250 check, offered by conniving Democrats who are about to be duly trounced out of Congress, will be little comfort. “What’s a senior to do? Either take more risks by investing in the stock market or cut back on consumption. Neither strikes me as a wonderful way to spend one’s not-so-golden golden years,” writes Peter Cohan for Daily Finance.

Seniors would be far better off if they invested in gold and silver instead of throwing their money away in the rigged game that is the casino stock market.

Kurt Nimmo edits He is the author of Another Day in the Empire: Life In Neoconservative America.

US Financial Imperialism: Why the IMF Meetings Failed

Michael Hudson
October 18, 2010

And the Coming Capital Controls

“Coming events cast their shadows forward.” ~ Goethe

What is to stop U.S. banks and their customers from creating $1 trillion, $10 trillion or even $50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1% interest cost? This is the game that is being played today.

The outflow of dollar credit into foreign markets in pursuit of this financial strategy has bid up asset prices and foreign currencies, enabling speculators to pay off their U.S. positions in cheaper dollars, keeping the currency shift as well as the arbitrage interest-rate margin for themselves.

Finance has become the new form of warfare – without the expense of military overhead and an occupation against unwilling hosts. It is a competition in credit creation to buy foreign real estate and natural resources, infrastructure, bonds and corporate stock ownership.

Who needs an army when you can obtain monetary wealth and asset appropriation simply by financial means? Victory promises to go to the economy whose banking system can create the most credit, using an army of computer keyboards to appropriate the world’s resources.

U.S. officials demonize countries suffering these dollar inflows as aggressive ‘currency manipulators’ for what Treasury Secretary Tim Geithner calls “‘Competitive nonappreciation,’ in which countries block their currencies from rising in value.”[1A] Oscar Wilde would have struggled to find a more convoluted term for other countries protecting themselves from raiders trying to force up their currencies to make enormous predatory fortunes.

Competitive nonappreciation’ sounds like ‘conspiratorial non-suicide.’ These countries simply are trying to protect their currencies from arbitrageurs and speculators flooding their financial markets with dollars, sweeping their currencies up and down to extract billions of dollars from their central banks.

Their central banks are being forced to choose between passively letting these inflows push up their exchange rates – thereby pricing their exports out of foreign markets – or recycling these inflows into U.S. Treasury bills yielding only 1% with declining exchange value. (Longer-term bonds risk a price decline if U.S interest rates should rise.)

U.S. officials demonize foreign countries as aggressive “currency manipulators” for keeping their currencies weak. But these countries simply are trying to protect their currencies from arbitrageurs and speculators flooding their financial markets with dollars. Foreign central banks must choose between passively letting these inflows push up their exchange rates – thereby pricing their exports out of global markets – or recycling these inflows into U.S. Treasury bills yielding only 1% and whose exchange value is declining. (Longer-term bonds risk a domestic dollar-price decline if U.S interest rates should rise.)

The euphemism for flooding economies with credit is “quantitative easing.” The Federal Reserve is pumping liquidity and reserves into the financial system to reduce interest rates, ostensibly to enable banks to “earn their way” out of negative equity resulting from the bad loans made during the real estate bubble. This liquidity is spilling over to foreign economies, increasing their exchange rates. Joseph Stiglitz recently acknowledged that instead of helping the global recovery, the “flood of liquidity” from the Fed and the European Central Bank is causing “chaos” in foreign exchange markets. “The irony is that the Fed is creating all this liquidity with the hope that it will revive the American economy. … It’s doing nothing for the American economy, but it’s causing chaos over the rest of the world.”[1]

What U.S. quantitative easing is achieving is to drive the dollar down and other currencies up, much to the applause of currency speculators enjoying quick and easy gains. Yet it is to defend this system that U.S. diplomats and bank lobbyists are threatening to derail the international financial system and plunge world trade into anarchy if other countries do not agree to a replay of the 1985 Plaza Accord “as a possible framework for engineering an orderly decline in the dollar and avoiding potentially destabilizing trade fights.”[2]

The Plaza Accord derailed Japan’s economy by raising its exchange rate while lowering interest rates, flooding its economy with enough credit to inflate a real estate bubble. IMF managing director Dominique Strauss-Kahn was more realistic. “I’m not sure the mood is to have a new Plaza or Louvre accord,” he said at a press briefing on the eve of the IMF meetings in Washington. “We are in a different time today.” Acknowledging the need for “some element of capital controls [to] be put in place,” he added that in view of U.S. insistence on open, unprotected capital markets, “The idea that there is an absolute need in a globalised world to work together may lose some steam.”[3]

At issue is how long nations will succumb to the speculative dollar glut. The world is being forced to choose between subordination to U.S. economic nationalism or an interim of financial anarchy. Nations are responding by seeking to create an alternative international financial system, risking an anarchic transition period in order to create a fairer world economy.

You can read the full article here:

VIDEO: Corrupt Empire 10/20/10

From Global Depression to Global Governance

The role of the corporate elites’ secretive global think tanks

Andrew Gavin Marshall
Global Research
October 19, 2010

We now stand at the edge of the global financial abyss of a ‘Great Global Debt Depression,’ where nations, mired in extreme debt, are beginning to implement ‘fiscal austerity’ measures to reduce their deficits, which will ultimately result in systematic global social genocide, as the middle classes vanish and the social foundations upon which our nations rest are swept away. How did we get here? Who brought us here? Where is this road leading? These are questions I will briefly attempt to answer.

At the heart of the global political economy is the central banking system. Central banks are responsible for printing a nation’s currency and setting interest rates, thus determining the value of the currency. This should no doubt be the prerogative of a national government, however, central banks are of a particularly deceptive nature, in which while being imbued with governmental authority, they are in fact privately owned by the world’s major global banks, and are thus profit-seeking institutions. How do central banks make a profit? The answer is simple: how do all banks make a profit? Interest on debt. Loans are made, interest rates are set, and profits are made. It is a system of debt, imperial economics at its finest.

In the United States, President Woodrow Wilson signed the Federal Reserve Act in 1913, creating the Federal Reserve System, with the Board located in Washington, appointed by the President, but where true power rested in the 12 regional banks, most notably among them, the Federal Reserve Bank of New York. The regional Fed banks were private banks, owned in shares by the major banks in each region, which elected the board members to represent them, and who would then share power with the Federal Reserve Board in Washington.

In the early 1920s, the Council on Foreign Relations was formed in the United States as the premier foreign policy think tank, dominated by powerful banking interests. In 1930, the Bank for International Settlements (BIS) was created to manage German reparations payments, but it also had another role, which was much less known, but much more significant. It was to act as a “coordinator of the operations of central banks around the world.” Essentially, it is the central bank for the world’s central banks, whose operations are kept ‘strictly confidential.’ As historian Carroll Quigley wrote:

“The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.”

In 1954, the Bilderberg Group was formed as a secretive global think tank, comprising intellectual, financial, corporate, political, military and media elites from Western Europe and North America, with prominent bankers such as David Rockefeller, as well as European royalty, such as the Dutch royal family, who are the largest shareholders in Royal Dutch Shell, whose CEO attends every meeting. This group of roughly 130 elites meets every year in secret to discuss and debate global affairs, and to set general goals and undertake broad agendas at various meetings. The group was initially formed to promote European integration. The 1956 meeting discussed European integration and a common currency. In fact, the current Chairman of the Bilderberg Group told European media last year that the euro was debated at the Bilderberg Group.

In 1973, David Rockefeller, Chairman and CEO of Chase Manhattan Bank, Chairman of the Council on Foreign Relations and a member of the Steering Committee of the Blderberg Group, formed the Trilateral Commission with CFR academic Zbigniew Brzezinski. That same year, the oil price shocks created a wealth of oil money, which was discussed at that years Bilderberg meeting 5 months prior to the oil shocks, and the money was funneled through western banks, which loaned it to ‘third world’ nations desperately in need of loans to finance industrialization.

When Jimmy Carter became President in 1977, he appointed over two dozen members of the Trilateral Commission into his cabinet, including himself, and of course, Zbigniew Brzezinski, who was his National Security Adviser. In 1979, Carter appointed David Rockefeller’s former aide and friend, Paul Volcker, who had held various positions at the Federal Reserve Bank of New York and the U.S. Treasury Department, and who also happened to be a member of the Trilateral Commission, as Chairman of the Federal Reserve. When another oil shock took place in 1979, Volcker decided to raise interest rates from 2% in the late 70s, to 18% in the early 80s. The effect this had was that the countries of the developing world suddenly had to pay enormous interest on their loans, and in 1982, Mexico announced it could no longer afford to pay its interest, and it defaulted on its debt, which set off the 1980s debt crisis – collapsing nations in debt across Latin America, Africa and parts of Asia.

It was the IMF and the World Bank came to the ‘assistance’ of the Third World with their ‘structural adjustment programs’, which forced countries seeking assistance to privatize all state owned industries and resources, devalue their currencies, liberalize their economies, dismantle health, education and social services; ultimately resulting in the re-colonization of the ‘Third World’ as Western corporations and banks bought all their assets and resources, and ultimately created the conditions of social genocide, with the spread of mass poverty, and the emergence of corrupt national elites who were subservient to the interests of Western elites. The people in these nations would protest, riot and rebel, and the states would clamp down with the police and military.

In the West, corporations and banks saw rapid, record-breaking profits. This was the era in which the term ‘globalization’ emerged. While profits soared, wages for people in the West did not. Thus, to consume in an economy in which prices were rising, people had to go into debt. This is why this era marked the rise of credit cards fueling consumption, and the middle class became a class based entirely on debt.

In the 1990s, the ‘new world order’ was born, with America ruling the global economy, free trade agreements began integrating regional and global markets for the benefit of global banks and corporations, and speculation dominated the economy.

The global economic crisis arose as a result of decades of global imperialism – known recently as ‘globalization’ – and the reckless growth of– speculation, derivatives and an explosion of debt. As the economic crisis spread, nations of the world, particularly the United States, bailed out the major banks (which should have been made to fail and crumble under their own corruption and greed), and now the West has essentially privatized profits for the banks, and socialized the risk. In other words, the nations bought the debt from the banks, and now the people have to pay for it. The people, however, are immersed in their own personal debt to such degrees that today, the average Canadian is $39,000 in debt, and students are graduating into a jobless market with tens to hundreds of thousands of dollars of student debt that they will never repay. Hence, we are now faced with a global debt crisis.

To manage the economic crisis, the G20 was established as the major international forum for cooperation among the 20 major economies of the world, including the major developing – or emerging – economies, such as India, Brazil, South Africa and China. At the onset of the financial crisis, China and Russia’s central banks began calling for the establishment of a global currency to replace the U.S. dollar as the world reserve currency. This proposal was backed by the UN and the IMF. It should be noted, however, that the Chinese and Russian central banks cooperate with the Western central banks through the Bank for International Settlements – which the President of the European Central Bank, Jean-Claude Trichet, recently said was the principle forum for “governance of central bank cooperation” and that the G20 is “the prime group for global economic governance.” In 2009, the IMF stated that the BIS “is the central and the oldest focal point for coordination of global governance arrangements.” The President of the European Union, appointed to the position after attending a Bilderberg meeting, declared 2009 as the “first year of global governance.” The 2009 Bilderberg meeting reported on the desire to create a global treasury, or global central bank, to manage the world economy. In 2009, prior to the Bilderberg meeting in fact, the G20 set in motion plans to make the IMF a global central bank of sorts, issuing and even printing its own currency – called Special Drawing Rights (SDRs) – which is valued against a basket of currencies. In May of 2010, the IMF Managing Director stated that “crisis is an opportunity,” and while Special Drawing Rights are a step in the right direction, ultimately what is needed is “a new global currency issued by a global central bank, with robust governance and institutional features.” Thus, we see the emergence of a process towards the formation of a global central bank and a global currency, totally unaccountable to any nation or people, and totally controlled by global banking interests.

In 2010, Greece was plunged into a debt crisis, a crisis which is now spreading across Europe, to the U.K. and eventually to Japan and the United States. If we look at Greece, we see the nature of the global debt crisis. The debt is owed to major European and American banks. To pay the interest on the debt, Greece had to get a loan from the European Central Bank and the IMF, which forced the country to impose ‘fiscal austerity’ measures as a condition for the loans, pressuring Greece to commit social genocide. Meanwhile, the major banks of America and Europe speculate against the Greek debt, further plunging the country into economic and social crisis. The loan is granted, to pay the interest, yet simply has the effect of adding to the overall debt, as a new loan is new debt. Thus, Greece is caught in the same debt trap that re-colonized the Third World.

At the recent G20 meeting in Toronto, the major nations of the world agreed to impose fiscal austerity – or in other words, commit social genocide – within their nations, in a veritable global structural adjustment program. So now we will see the beginnings of the Great Global Debt Depression, in which major western and global nations cut social spending, create mass unemployment by dismantling health, education, and social services. Further, state infrastructure – such as roads, bridges, airports, ports, railways, prisons, hospitals, electric transmission lines and water – will be privatized, so that global corporations and banks will own the entirely of national assets. Simultaneously, of course, taxes will be raised dramatically to levels never before seen. The BIS said that interest rates should rise at the same time, meaning that interest payments on debt will dramatically increase at both the national and individual level, forcing governments to turn to the IMF for loans – likely in the form of its new global reserve currency – to simply pay the interest, and will thus be absorbing more debt. Simultaneously, of course, the middle class will in effect have its debts called in, and since the middle class exists only as an illusion, the illusion will vanish.

Already, towns, cities, and states across America are resorting to drastic actions to reduce their debts, such as closing fire stations, scaling back trash collection, turning off street lights, ending bus services and public transportation, cutting back on library hours or closing them altogether, school districts cutting down the school day, week or year. Simultaneously, this is occurring with a dramatic increase in the rate of privatizations or “public-private partnerships” in which even libraries are being privatized.

No wonder then, that this month, the Managing Director of the IMF warned that America and Europe, in the midst of the worst jobs crisis since the Great Depression, face an “explosion of social unrest.” Just yesterday, Europe experienced a wave of mass protests and social unrest in opposition to ‘austerity measures’, with a general strike in Spain involving millions of people, and a march on the EU headquarters in Brussels of nearly 100,000 people. As social unrest spreads, governments will likely react – as we saw in the case of the G20 in Toronto – with oppressive police state measures. Here, we see the true relevance of the emergence of ‘Homeland Security States’, designed not to protect people from terrorists, but to protect the powerful from the people.

So while things have never seemed quite so bleak, there is a dim and growing beacon of hope, in what Zbigniew Brzezinski has termed as the greatest threat to elite interests everywhere – the ‘global political awakening’. The global political awakening is representative of the fact that for the first time in all of human history, mankind is politically awakened and stirring, activated and aware, and that generally – as Zbigniew Brzezinski explains – generally is aware of global inequalities, exploitation, and disrespect. This awakening is largely the result of the information revolution – thus revealing the contradictory nature of the globalization project – as while it globalizes power and oppression, so too does it globalize awareness and opposition. This awakening is the greatest threat to entrenched elite interests everywhere. The awakening, while having taken root in the global south – already long subjected to exploitation and devastation – is now stirring in the west, and will grow as the economy crumbles. As the middle classes realize their consumption was an illusion of wealth, they will seek answers and demand true change, not the Wall Street packaged ‘brand-name’ change of Obama Inc., but true, inspired, and empowering change.

In 1967, Martin Luther King delivered a speech in which he spoke out against the Vietnam War and the American empire, and he stated that, “It seems as if we are on the wrong side of a world revolution.” So now it seems to me that the time has come for that to change.

Andrew Gavin Marshall is a Research Associate with the Centre for Research on Globalization (CRG). He is co-editor, with Michel Chossudovsky, of the recent book, “The Global Economic Crisis: The Great Depression of the XXI Century,” available to order at

VIDEO: Will Americans Follow French Example Of Mass Civil Unrest?

Paul Joseph Watson
October 19, 2010

How will Americans react when the government begins to impose the same austerity measures that are causing riots, street battles, fuel blockades and other assorted chaos in France? Will we witness mass civil unrest or will the sleeping middle classes continue to scratch their butts and watch Dancing with the Stars?

Back in June we forecast that the imminent onset of so-called austerity measures, which in reality represent nothing more than an elevated phase of government-run looting of the taxpayer, would herald an “age of rage,” leading to “riots and even revolutions as people react with fury in response to their jobs, savings, basic public services, pensions and welfare money being seized by the financial terrorists who caused the economic collapse in the first place.”

Four months later and citizens of one of the most prosperous countries in the world with the highest standard of living have shut down France after six days of strikes and protests in response to government plans to raise the retirement age from 60 to 62 and the full state pension age from 65 to 67.

Undoubtedly, there are two different protests occurring in France. The more violent scenes are the work of the rent-a-mob anarchist youths who couldn’t care less about pensions but will waste no opportunity to don black hoods and pointlessly smash up shop windows in demonstrations against “capitalism,” when in reality government seizure of pensions has all the hallmarks of command and control socialism and nothing to do with true free market capitalism.

These youths are more concerned about their welfare checks being cut, but they won’t garner the sympathy of the rest of the French people by taking baseball bats to Starbucks forecourts in mocked up media stunts. The legitimate protests and the ones that genuinely hurt the establishment and put the idiot anarchists to shame are being run by French workers, truck drivers, and union leaders, and enjoy the support of around 70% of the population.

Over a thousand gas stations have now run out of fuel across France, with strategic reserves set to last just a few weeks. Flights and trains have been disrupted, organized slowdowns have snarled highway traffic. The French are showing Americans how it should be done, by uniting peacefully to shut down an entire country. This is genuine people power – the French are sending a message to the establishment that they will no longer play ball until the looting stops.

Will the rent-a-mob anarchists stage similar violent riots in America or will the middle classes embrace a much more legitimate backlash in the same vein as the union protesters in France?

With the Obama administration set to seize private 401(k) pensions and turn them over to the Social Security Administration, how long will it be before Americans stir from their slumber and realize that their economic future and also that of their children is in immediate peril?

When will Americans begin to understand that the onset of another government bailout in the form of QE2 represents the biggest bank robbery in history?

Just how distracted, dumbed-down, fat and lazy has the American middle class become to prevent them from realizing a threat when they see it?

British historian Simon Schama predicts not only widespread civil unrest in America, but even a potential revolution if the elite allow the situation to spiral out of their control. Schama notes that Obama will have to ditch “misplaced obligations of civility” and become an authoritarian enforcer in order to emerge successful against the rising tide of Constitutionalist rage that will be directed against the coming austerity fascism.

As we documented in our article, the kind of public spending cuts, tax increases, salary caps, and retirement crackdowns that are now about to be implemented outstrip anything we’ve witnessed before in modern history.

If the American middle class reacts to this total banker takeover by collectively scratching their butts and flipping the TV channel, the country as we know it is probably gone for good.

However, if Americans follow the example of the French and send a clear signal to the elite that they will refuse to participate in a rigged game, then a true revolution that will restore both political and economic freedom and prosperity will be set in motion.

With Americans buying silver to protect their savings and guns to protect themselves in record numbers, it seems that the message is at least getting through to some of the people, but until we see mass walk-outs, blockades and other acts of non-violent mass civil disobedience, the establishment will continue to move forward with onslaught after onslaught of financial pillaging.

Watch Alex Jones and Max Keiser discuss the French riots and the sleepwalking American middle class.

We’re running a poll on Prison asking the question, How Will Americans React To Austerity Fascism? Let us know what you think by placing your vote.

Paul Joseph Watson is the editor and writer for Prison He is the author of Order Out Of Chaos. Watson is also a fill-in host for The Alex Jones Show. Watson has been interviewed by many publications and radio shows, including Vanity Fair and Coast to Coast AM, America’s most listened to late night talk show.

Tuesday, October 19, 2010

VIDEO: The Biggest Bank Robbery In History? More Quantitative Easing = Backdoor Bailouts For The Big Banks Without Having To Go Through Congress

The Economic Collapse
Oct 19, 2010

The U.S. Federal Reserve is getting ready to conduct another gigantic bailout of the big banks, but this time virtually nobody in the mainstream media will use the term "bailout" and the American people are going to get a lot less upset about it. You see, one lesson that was learned during the last round of bank bailouts was that the American people really, really do not like it when the U.S. Congress votes to give money to the big banks. So this time, the financial "powers that be" have figured out a way around that. Instead of going through the massive headache of dealing with the U.S. Congress, the Federal Reserve is simply going to print money and give it directly to the banks. To be more precise, the Federal Reserve is going to use a procedure known as "quantitative easing" to print money out of thin air in order to purchase large quantities of "troubled assets" (such as mortgage-backed securities) from the biggest U.S. banks at well above market price. Some are already openly wondering if this next round of quantitative easing is going to be the biggest bank robbery in history. Most Americans won't understand these "backdoor bailouts" well enough to get upset about them, but that doesn't mean that they won't be just as bad (or even worse) than the last round of bailouts. In the end, all of the inflation that this new round of quantitative easing is going to cause is going to be a "hidden tax" on all of us.

These new backdoor bailouts are going to work something like this....

1) The big U.S. banks have massive quantities of junk mortgage-backed securities that are worth little to nothing that they desperately want to get rid of.

2) They convince the Federal Reserve (which the big banks are part-owners of) to buy up these "toxic assets" at way above market price.

3) The Federal Reserve creates massive amounts of money out of thin air to buy up all of these troubled assets. The public is told that all of this "quantitative easing" is necessary to stimulate the U.S. economy.

4) The big banks are re-capitalized and have gotten massive amounts of bad mortgage securities off their hands, the Federal Reserve has found a way to pump hundreds of billions (if not trillions) of dollars into the economy, and most of the American people are none the wiser.

During a recent appearance on MSNBC, Matt Taibbi of Rolling Stone did a great job of explaining how this all works....

But this isn't the only way that the Federal Reserve forks over massive amounts of cash to the big U.S. banks. In a previous article, I described how the U.S. Federal Reserve lends huge quantities of nearly interest-free money to big U.S. banks which they turn around and invest in U.S. Treasuries which bring in a return of three percent or so. In essence, it is a legalized way for the big U.S. banks to make mountains and mountains of free money.

The truth is that the Federal Reserve does whatever it can to ensure that the big U.S. banks stay fat and happy.

So what about the small banks? What happens to them?

Well, the vast majority of the small banks are considered "not big enough for bailouts" and they are allowed to die like dogs.

Don't let anyone ever fool you into thinking that the U.S. banking system has a level playing field.

For weeks, Federal Reserve officials have been coming out and have been dropping hints about how important it is for them to take "action" and implement another round of quantitative easing in order to help stimulate the U.S. economy.

In fact, during his speech on Friday, you could almost hear Ben Bernanke salivating at the thought of printing more money.

But nobody ever really asks who is going to be the first to get their hands on all this money that the Fed is going to pump into the economy.

The answer, of course, is obvious.

It is going to be the big banks - the same banks that are part-owners of the Federal Reserve and that have tremendous influence over Fed policies.

But even though this is all more than a little shady, is it such a bad thing for the rest of us if the Federal Reserve bails out the big banks and brings some much needed stability back to the U.S. financial system?

After all, if "Foreclosure-Gate" could potentially cause a nightmarish financial meltdown, isn't it better for the Federal Reserve to step in and soak up large amounts of these toxic assets?

Those are legitimate questions.

Certainly the Federal Reserve has the power to step in and smooth over all sorts of short-term problems by papering them with money, but in the end printing more money will just make our long-term problems even worse.

Whenever a new dollar is introduced into the system, every other dollar in existence loses a little bit of value.

When trillions of new dollars get introduced into the system, it has the potential to create an inflationary nightmare.

Already, a number of top Fed officials are publicly saying that inflation is "too low" and that we need to purposely generate more inflation in order to "stimulate" the U.S. economy.

Yes, that is just as insane as it sounds, but that is what they are actually proposing.

Apparently many top Federal Reserve officials honestly believe that they can pump trillions into the economy, jack up inflation significantly, and little harm will be done.

But even before "QE2" has begun, we are already starting to see all kinds of little bubbles beginning to develop in the financial system. For example, commodity prices are skyrocketing right now, and that will soon be affecting the price we pay for food at the supermarket.

We are already on the road to serious inflation and the Federal Reserve has not even fired up the money hoses yet. So what is going to happen after they pump trillions more into the economy?

Printing more money and giving it to the banks is not going to solve our economic problems. It is just going to make them worse.

But unfortunately, American voters get no say about any of this. Our national monetary policy is in the hands of an unelected central bank that does pretty much whatever it wants.

An economic nightmare is coming, and you had better get ready.

EU Dictators Plan Fresh Looting Of Tax Slaves

Paul Joseph Watson
October 19, 2010

The sprawling, blood-sucking, dictatorial, EU is trying to fill its coffers at a time when everyone else is being told they must tighten their belts and accept draconian austerity measures, by preparing to impose a new direct tax on European citizens already financially destitute as a result of the economic collapse.

If you want a taste of how the global tax to fund the expansion of world government will be implemented, look no further than the European Commission, which has laid out no less than eight different forms of direct taxation that it wants to impose on citizens of all 27 member states, despite the fact that the majority of people in all of these countries would rather their governments cease all financial commitments to the EU entirely.

Not content with national governments from every member country already sending taxpayer money to the bloated, anti-democratic EU bureaucracy, globalists in Brussels are now desperate to sink their teeth in further, in an effort to increase their budget by 6 per cent even in the midst of a national debt crisis which affects the majority of European nations.

The unelected bastards in Brussels are set to once again display their “insatiable appetite for power and taxpayers’ money,” as MP Douglas Carswell warns, by flexing the muscles of their completely illegitimate and autocratic voting system to loot taxpayers of whatever meager amounts of disposable income they have left.

“Options expected to be proposed in an EU report today include levies on carbon emissions, air transport, financial transactions or bank profits. There could even be extra taxes on petrol,” reports the Express.

According to an RTE report, the EU could even push for its own European-wide VAT tax, on top of the 20 per cent plus VAT tax people in Europe pay already.

Fully aware of the fact that a direct EU tax will cause a huge backlash and potentially mass civil disobedience amongst those forced to pay it, EU bureaucrats….have advised officials to avoid using the word “tax” because it would be “politically explosive”.

As UK Independence Party Euro MP Marta Andreasen points out, however the tax is applied, it will ultimately impact individual citizens.

“If it is slapped on banks, they will pass the cost to the customer. The taxpayer will always be the loser. The Commission is outrageous and deceitful,” said Andreasen.

Is there no end to the ceaseless financial raping and pillaging globalists think they are entitled to conduct with wanton abandon and supreme arrogance?

European citizens are already being told they must endure the most severe and crippling austerity measures in modern history as pensions are seized, retirement ages hiked, public services cut and all manner of existing taxes raised – and now this – the corrupt, unrepresentative, and widely despised EU wants to get in on the feeding frenzy.

Europeans should follow the example of the French and organize mass resistance to any proposal for a direct EU tax. Once the globalists are allowed to get their hands in our pockets, the looting will know no bounds.

The elite are desperate to build a national sovereignty-crushing European federal superstate as part of the march towards world government and they’re going to make the victims of that process pay for the privilege.

EU President Herman Van Rompuy made it clear what the ultimate agenda was when he told fellow globalists that the European Union was committed to exploiting the financial crisis and the fraudulent global warming scare to ram through “the global management of our planet.” Globally managing a planetary dictatorship doesn’t come cheap, which is why the slaves are going to pay for it if the EU has its way.

Find out more about the origins of the fundamentally undemocratic, tyrannical, and autocratic European Union, which was started as a brainchild of the Nazis and later hijacked by Communists and Marxists from the former Soviet-controlled countries to be used as an engine for a global totalitarian takeover.

Top Nazis Planned EU-Style Fourth

Former Soviet Dissident Warns Of EU Socialist Dictatorship

MEP Reprimanded For Exposing EU Dictatorship