Saturday, June 30, 2012

Obamacare to unleash crushing new taxes, trillions in debt, huge job losses, and it doesn’t even cover natural medicine

Mike Adams
Natural News
June 30, 2012

By now, we all know the U.S. Supreme Court upheld the individual mandate portion of Obamacare by declaring it a “tax.” This is, in essence, a declaration that the federal government now has unlimited power to force consumers to spend some (or even all) of their take-home pay on various products, services or even intellectual property that they have no interest in buying in the first place. It is a concentration of economic power in the hands of the federal government, and it suddenly ends economic liberty in America (…).

It’s also the largest tax increase in the history of the United States. By upholding Obamacare’s individual mandate as a “tax,” Chief Justice Robert just labeled President Obama the largest tax increase President in the history of the country! (…)

And yet President Obama himself declared the individual mandate was NOT a tax. Here’s the video:

And here’s the transcript of his interview with George Stephanopoulos:…

But now, of course, Chief Justice Roberts has declared it IS a tax, after all. Thus, Obama’s key legislative achievement has become the single greatest legislative deception in the history of America.

How much will this new tax cost you? The Washington Post has published a handy online calculator:…

It shows that the new tax begins in 2014, then ramps up to its maximum penalty at 2016, at which point you are taxed year after year until you cave in and buy into the monopoly Big Pharma health insurance scam. This is, for the record, the largest tax increase in history. And it’s for a system of medicine which is a Big Pharma monopoly that doesn’t even give consumers the freedom to choose natural medicine or alternative therapies!

21 new taxes on Americans

The high court’s ruling leaves in place 21 tax increases in the health-care law costing more than $675 billion over the next 10 years, according to the House Ways and Means Committee. Of those, 12 tax hikes would affect families earning less than $250,000 per year, the panel said, including a “Cadillac tax” on high-cost insurance plans, a tax on insurance providers, and an excise tax on medical device manufacturers. (…)

Now that Obamacare’s penalty is a “tax,” not a “fee,” Mr. Obama is breaking a 2008 campaign pledge not to raise taxes on Americans earning less than $250,000. This new “tax” will hit across the economic spectrum, despite his campaign declaration that health care should “never be purchased with tax increase on middle-class families.” Now, Mr. Obama and congressional Democrats have enacted the largest tax increase in history.

Federal government can now order you to engage in selected commerce

For the record, under the precedent now set by the U.S. Supreme Court, the federal government can simply order you to engage in whatever commerce the government chooses. All they have to do is create a penalty for refusing to go along with their order, and characterize the penalty as a “tax.”

Ron Paul gets it. He understands the simple truth that the government has no power to compel people to engage in commerce. “The insurance mandate clearly exceeds the federal government’s powers under the interstate commerce clause found in Article I, Section 8 of the Constitution,” writes Ron Paul. “This is patently obvious: the power to ‘regulate’ commerce cannot include the power to compel commerce! Those who claim otherwise simply ignore the plain meaning of the Constitution because they don’t want to limit federal power in any way. The commerce clause was intended simply to give Congress the power to regulate foreign trade, and also to prevent states from imposing tariffs on interstate goods. In Federalist Paper No. 22, Alexander Hamilton makes it clear the simple intent behind the clause was to prevent states from placing tolls or tariffs on goods as they passed through each state — a practice that had proven particularly destructive across the many principalities of the German empire.” (

Health insurance premiums will soar

Obamacare is going to absolutely shred the infrastructure of our medical system, it is going to send health insurance premiums soaring, it is going to dramatically expand the size and the scope of government, it is going to fundamentally alter the relationships between doctors and their patients and it is one of the largest tax increases in U.S. history. Not only that, it is also going to add about a trillion dollars to our national debt over the next decade. So no, the Obamacare decision is not good news. Obamacare was one of the worst pieces of legislation in American history, and now we are stuck with it.…

Huge political revolt now expected

What are the political ramifications of all this? Obamacare remains widely hated by much of the U.S. population — at least the portion of the population that actually works for a living — and this Supreme Court decision will likely ruffle even more feathers of taxpayers who are tired of being pick-pocketed by the federal government at every turn. While most people don’t mind paying some reasonable level of tax to the feds, having the government invade your take-home pay and start forcing you to spend it on things you may or may not want is another thing entirely.

Because of the backlash against this law, it seems almost certain that this Supreme Court decision will play right into the hands of Mitt Romney, who will now make repealing Obamacare the centerpiece of his election campaign. He has already stated, in the Weekly Standard, “If We Want to Get Rid of Obamacare, We’re Going to Have to Replace President Obama.” (…)

But even if Obama is replaced in the White House, the damage has already been done. With its decision, the U.S. Supreme Court has set a precedent of government control over private paychecks, and that precedent has fundamentally crushed economic freedom in America and opened the door to limitless taxes for everything imaginable. King George III couldn’t have done it better.

Nevertheless, based on this decision I now predict a sweeping victory for Republicans in the 2012 elections as a backlash against Obamacare. I’m not saying I support Romney or the Republicans, because I think all politicians are crooks for the most part, and I agree with Gov. Jesse Ventura that the two-party system is largely just two criminal gangs jockeying for power on how they can exploit the people they claim to represent. Whether it’s DemoCRIPS or ReBLOODlicans in power, they’re all political gangstas.

Even if Romney takes office next January, actually repealing Obamacare would be almost impossible to achieve, by the way. Unraveling bad laws is far more difficult than getting them passed in the first place. It would take a true taxpayer revolt to pull it off.

The American revolution just inched one step closer to reality

We may be headed for that sooner than you think, by the way. With this decision to seize control of the money right out of your own paycheck, the moral collapse of the U.S. government is now complete. Once this “tax” starts to come due, many taxpayers will be in a state of near revolt. That, coupled with the economic collapse heading our way from the EU, will bring many Americans to a point of financial desperation.

It is from such conditions that, historically, revolutions emerge. And that’s assuming we even make it to 2014 when the Obamacare tax is supposed to be levied on the American people. By some estimates, the U.S. government may suffer a crushing financial collapse between 2012 and 2015. If the government collapses, Obamacare and all the other bad laws go down with it: the Patriot Act, the DMCA, the NDAA, and so on. That’s the one interesting thing about human history: Every time governments become too large, too bloated and too deeply invested in crushing liberty, the People eventually rise up against the injustices and take their country back, starting with a clean slate (which eventually becomes corrupt a few years later, of course).

It is the cycle of human civilization… the rise and fall of civilizations. We are living in the time of the fall of the American empire, and it’s going to get a lot worse before it gets better. Hope you’re ready to live in “interesting times,” because we all have a front row seat to history in the making.

VIDEO: Frank Serpico - Police Corruption On Steroids!

VIDEO: Fast & Furious Wiretaps Expose Eric Holder!

Friday, June 29, 2012

Big Banks Have Become Mafia-Style Criminal Enterprises

Friday, June 29, 2012

Two stories this week prove once again that the big banks are literally criminal enterprises.

Initially, all of the big banks have engaged in Mafia-style “bid-rigging” of municipal bonds, to bilk money from every city in the nation … to the collective tune of tens billions of dollars.

And Barclays and other large banks – including Citigroup, HSBC, J.P. Morgan Chase, Lloyds, UBS, Royal Bank of Scotland – manipulated the world’s primary interest rate (Libor) which virtually every adjustable-rate investment globally is pegged to.

And see this. That means they manipulated a good chunk of the world economy.

Other recent stories also show criminal fraud as well. For example, the big banks have been cheating homeownersespecially veterans.

And as Max Keiser explains, banking giants Mellon and State Street shaved money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide:

Indeed, the entire business model of the big banks is fraud. See this, this, this, this, this and this.

Fraud caused the 1930s Depression and the current financial crisis.

Regulators Have Become “Cops On the Take”

There’s no recovery because the government made it official policy not to prosecute fraud (and see this,this, this, and this).

Unfortunately, the cop is on the take … and the government’s only actions are to cover up the fraud and to leave the people holding the bag.

VIDEO: Nigel Farage States The Obvious - Van Rompuy, Barroso Are The Most Treasonous Criminals In EU Since 1945

VIDEO: The True Origins of Barack Obama's Hard Core Marxist Ideology with Director Joel Gilbert

Supreme Court’s Obamacare decision hands federal government unlimited power to force you to spend 100% of your paycheck on things you don’t even want

Mike Adams
Friday, June 29, 2012

Regardless of whether you agree with the fundamentals of Obamacare, the fact that the U.S. Supreme Court has now ruled the federal government has the power to tax Americans into mandatory purchases of private industry products means an end to economic freedom in America. Why? Because it hands the federal government the power to force the American people to buy anything the government wants or face tax penalties for refusing to do so. It is the equivalent of announcing a federal monopoly over all private purchasing decisions.

“The Affordable Care Act’s requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably be characterized as a tax,” wrote Chief Justice John Roberts, in his majority opinion. “Because the Constitution permits such a tax, it is not our role to forbid it, or to pass upon its wisdom or fairness.”

Thus, the government can force Americans to buy anything it wants by simply characterizing the forced payment as a “tax.”

Economic freedom crushed by Supreme Court

This article is not an argument so much about Obamacare itself, by the way; it’s a red alert about a fundamental loss of economic freedom — a shifting of private purchasing decisions to Washington D.C. Now, buoyed by the passage of Obamacare, the U.S. government can (and will) create new mandates that, for example, would force Americans to buy all the following:

• A new car each year from Detroit, in order to “boost the U.S. auto industry.”
• War bonds to “support the war effort.”
• A year’s supply of vaccines.
• Life insurance from the government’s “approved” sources.
• Lawn fertilizer (the “lawn health care mandate”).
• Intellectual property such as patented human genes already in your body.

There is no limit to the reach of the Supreme Court’s wild misinterpretation of the Commerce Clause, it seems. So now, all Americans can expect to get ready for the federal government to start laying out a long list of products and services we will all be taxed into buying from the crony capitalist buddies of those in power.

Government hands economic monopoly to Big Pharma and the vaccine industry

Perhaps the worst side effect is that Obamacare isn’t really about health care at all. It’s about protecting a Big Pharma monopoly over medicine; forcing consumers to buy into a system that offers zero coverage for alternative medicine, nutritional therapies, natural remedies or the healing arts.

If Obamacare actually offered consumers a free market choice of where to get services, it would be a lot more balanced and effective. Instead, it forces consumers to buy into a system of monopoly medicine of drugs and surgery that would flat-out collapse if not for the monopolistic protections granted to the industry by the government itself.

If given a free choice, most consumers prefer complementary medicine than straight-up “drugs and surgery” medicine, but complementary medicine isn’t covered under Obamacare. The law is really just another corrupt, criminal-minded handout to the drug industry. And now, thanks to the U.S. Supreme Court, you can’t even opt out!

Abuse of power by the federal government knows no bounds

That’s the real kicker in all this: No more opting out of the private purchasing demands of the federal government! Americans are being pick-pocketed at an alarming rate, and it’s only going to get worse now that this power has been unwisely handed to the federal government by a short-sighted Supreme Court.

Because long after Obama is gone, other Presidents — from any political party – will abuse this precedent to force Americans into buying any number of products, services, or even intellectual property that we don’t want. There is now no limit to what the federal government can force you to buy by calling it a “tax.”

Note, carefully, there is NO LIMIT to this “taxing” power. If you bring home a monthly paycheck of, for example, $3,000, the U.S. government can now mandate that you spend $2,999 of that on various products and services that it deems you must have “for your own protection.” You no longer control your own take-home pay! The government can force you to spend it on things you don’t want or even need!

America, it seems, is starting to sound a whole lot like England under King George. Soon, we’ll be living under our own modern Stamp Act from 1765, which eventually led to the American Revolution. Learn your history! As Wikipedia explains: (

The Stamp Act 1765 (short title Duties in American Colonies Act 1765; 5 George III, c. 12) was a direct tax imposed by the British Parliament specifically on the colonies of British America. The act required that many printed materials in the colonies be produced on stamped paper produced in London, carrying an embossed revenue stamp. These printed materials were legal documents, magazines, newspapers and many other types of paper used throughout the colonies. Like previous taxes, the stamp tax had to be paid in valid British currency, not in colonial paper money. The purpose of the tax was to help pay for troops stationed in North America after the British victory in the Seven Years’ War. The British government felt that the colonies were the primary beneficiaries of this military presence, and should pay at least a portion of the expense.

The Stamp Act met great resistance in the colonies. The colonies sent no representatives to Parliament, and therefore had no influence over what taxes were raised, how they were levied, or how they would be spent. Many colonists considered it a violation of their rights as Englishmen to be taxed without their consent — consent that only the colonial legislatures could grant. Colonial assemblies sent petitions and protests. The Stamp Act Congress held in New York City, reflecting the first significant joint colonial response to any British measure, also petitioned Parliament and the King. Local protest groups, led by colonial merchants and landowners, established connections through correspondence that created a loose coalition that extended from New England to Georgia. Protests and demonstrations initiated by the Sons of Liberty often turned violent and destructive as the masses became involved. Very soon all stamp tax distributors were intimidated into resigning their commissions, and the tax was never effectively collected.

Opposition to the Stamp Act was not limited to the colonies. British merchants and manufacturers, whose exports to the colonies were threatened by colonial economic problems exacerbated by the tax, also pressured Parliament. The Act was repealed on March 18, 1766 as a matter of expedience, but Parliament affirmed its power to legislate for the colonies “in all cases whatsoever” by also passing the Declaratory Act. There followed a series of new taxes and regulations, likewise opposed by the colonists.

The episode played a major role in defining the grievances and enabling the organized colonial resistance that led to the American Revolution in 1775.

Learn more:

Michael Moore Celebrates Obamacare Law Written by Insurance Companies

Anti-corporate crusader applauds Supreme Court decision to uphold bill crafted by huge corporations

Paul Joseph Watson
Friday, June 29, 2012

So-called anti-corporate crusader Michael Moore reacted with glee to the Supreme Court’s decision to uphold Obamacare, despite the fact that the bill was written primarily by the very insurance companies Moore claims to oppose.

Appearing on MSNBC’s The Last Word With Laurence O’Donnell, Moore said the Supreme Court decision was “a great victory” and should be met with “loud cheers throughout the country,” despite the fact that the majority of Americans are against Obamacare.

Although Moore admits in the interview, “The private, run for profit insurance companies are still running the show,” he failed to acknowledge that big corporations actually wrote the foundation for the entire Obamacare bill.

As Senator Max Baucus confirmed when Obamacare was passed, the genesis of the bill was an “87-page document which became the basis, the foundation, the blueprint from which almost all health care measures in all bills on both sides of the aisle came.”

And who wrote that 87-page white paper? None other than Liz Fowler – who in the two years before the bill was passed and while she was writing the “foundation” for Obamacare, was simultaneously working as Vice President of WellPoint - one of the largest health insurance companies in America.

Baucus profusely thanked Fowler for being personally responsible for crafting Obamacare. Politico described heras a “major player” in getting the bill passed.

Despite the fact that Obamacare will dump $500 billion in new taxes on already struggling American families, Moore was not satisfied, labeling mandatory government healthcare “the first piece” of the agenda, while cautioning conservatives that the process could not be stopped because it had the momentum of “a huge locomotive.”

“You better get on the train or watch your party implode – that’s my words of advice to the Republican Party,” said the filmmaker.

Meanwhile, Congressman Ron Paul reacted to the news by promising to spearhead a movement to repeal the law.

“Today we should remember that virtually everything government does is a ‘mandate.’ The issue is not whether Congress can compel commerce by forcing you to buy insurance, or simply compel you to pay a tax if you don’t. The issue is that this compulsion implies the use of government force against those who refuse. The fundamental hallmark of a free society should be the rejection of force. In a free society, therefore, individuals could opt out of “Obamacare” without paying a government tribute,” said Paul.


Paul Joseph Watson
is the editor and writer for Prison He is the author of Order Out Of Chaos. Watson is also a regular fill-in host for The Alex Jones Show and Infowars Nightly News.

VIDEO: Supreme Court Obama Care Ruling Trashes The Constitution And Betrays The Republic!

Elderly To Be Euthanized Under Obamacare?

UK’s socialist healthcare system kills 130,000 patients a year

Paul Joseph Watson
Thursday, June 28, 2012

If Britain’s socialist healthcare system is a benchmark for what we can expect from Obamacare, hundreds of thousands of elderly patients face being euthanized through “assisted death” techniques designed to cut costs.

The idea that “death panels” would be introduced through Obamacare as a means of rationing healthcare wasdiscussed during an Aspen Institute conference in 2010 when Bill Gates argued that money should not be spent on treating the elderly.

During a question and answer session, Gates implied that elderly patients undergoing expensive health care treatments should be killed and the money spent elsewhere.

Gates said there was a “lack of willingness” to consider the question of choosing between “spending a million dollars on that last three months of life for that patient” or laying off ten teachers.

“But that’s called the death panel and you’re not supposed to have that discussion,” added Gates.

However, Britain’s socialist healthcare system under the NHS has gone light years beyond death panels and actually introduced a method of “care” that actually has the intended effect of euthanizing patients.

In a recent exposé, Patrick Pullicino, a consultant neurologist for East Kent Hospitals and professor of clinical neurosciences at the University of Kent, revealed that of the 450,000 patients who die annually under the care of the NHS, 130,000 of them were on the Liverpool Care Pathway.

Liverpool Care Pathway (LCP) is a process whereby a doctor identifies a patient who is likely to die and that patient is then heavily sedated while treatment is withdrawn, “including the provision of water and nourishment by tube.”

“If we accept the Liverpool Care Pathway we accept that euthanasia is part of the standard way of dying as it is now associated with 29 per cent of NHS deaths,” Pullicino said.

The Telegraph’s Gerald Warner notes that LCP represents “euthanasia by the back door.” Other doctors such as Dr. Peter Hargreaves have highlighted the fact that patients taken off LCP have gone on to live for “significant amounts of time.”

Because death occurs on average within 33 hours of a patient being put on LCP, the cost difference between two days of morphine and treatment of a condition for months or even years means the NHS is literally euthanizing people to save money.

“In fact, Hargreaves noted, some patients may exhibit signs of dying when their bodies are merely reacting to sedation combined with dehydration and then “be wrongly put on the pathway.” Once a patient is sedated under the LCP, University of London geriatrics professor P.H. Millard told the Telegraph, “it is much harder to see that a patient is getting better.”

“Pullicino echoed many of these sentiments, saying that “patients are frequently put on the pathway without a proper analysis of their condition,” that “predicting death” at a specific time “is not possible scientifically,” and that, as a result, “very likely many patients who could live substantially longer are being killed by the LCP.”

As the New American reports, LCP is merely the tip of the iceberg when it comes to the innumerable horror stories attached with socialist healthcare under the British National Health Service.

Today’s Supreme Court upholding of Obamacare threatens to force Americans into a system of “healthcare” that actually strives to kill people with serious illnesses instead of providing them with the necessary treatment.


Paul Joseph Watson is the editor and writer for Prison He is the author of Order Out Of Chaos. Watson is also a regular fill-in host for The Alex Jones Show and Infowars Nightly News.

Thursday, June 28, 2012

VIDEO: The Truth Is We're All Tax Paying Milk Cows!

VIDEO: The States ARE NOT Bankrupt!! Carl Herman Reports On The Secret Govt Slush Funds Right Under Our Noses!

VIDEO: Global Collapse Closer Than You Think

VIDEO: Supreme Court Endorses Medical Tyranny

DNC Executive Director: ‘It’s Constitutional. Bitches.’

Tommy Christopher
Thursday, June 28, 2012

In the minutes following the announcement of theSupreme Court’s decision to uphold President Obama‘s Affordable Care Act, Democratic National Committee Executive Director Patrick Gaspardchanneled comedy legend Dave Chappelle in summing up the feelings of many Obama supporters, tweeting “It’s constitutional. Bitches.”

While this is the second-best result that liberals could have hoped for, history will record this as the weirdest of opposite days.

Expect lots of feigned outrage from conservatives over Gaspard’s tweet, (he later took a deep breath and tweeted “I let my scotus excitement get the better of me. In all seriousness, this is an important moment in improving the lives of all Americans.”)but the real outrage here is that Democrats everywhere will be celebrating, and Republicans will be rending their garments, over the Supreme Court’s rescue of the most conservative, least compassionate portion of the Affordable Care Act, one which Barack Obama hated so much, he campaigned vigorously against it, and which he only included in the law because there was no way to pass it with something good like Medicare for all.

The Democratic reaction is somewhat understandable, in that this decision is miles better than if the SCOTUS had decided to strike down the entire law. A better result would have been to strike down the mandate, while leaving the preexisting conditions clause in place, which could have forced Congress to pass something like Medicare for all.

Full story here.

Supreme Treason!!! Supreme Court Rules in Favor of Obamacare

Kurt Nimmo
June 28, 2012

In a victory for the New Deal bastardization of the Constitution, the Supreme Court has ruled that the government can mandate at gunpoint that Americans buy monopolized health care insurance.

“The Supreme Court upheld the health care law today in a splintered, complex opinion that appears to give President Obama a major victory,” reports USAToday.

In order to avoid arguments that the law is a misinterpretation of the Commerce Clause, the Court ruled that the requirement is a tax.

Justice Anthony Kennedy, who held the court’s swing vote, dissented. Reading from the bench, Kennedy said he and three conservative justices believe “the entire Act before us is invalid in its entirety.”

Polls conducted prior to the landmark vote indicate most Americans do not favor the law.

Today’s ruling is important because it is the first time in history that the federal government has required citizens enter into contract with private corporations to buy a product or service. It also represents one of the most egregious violations of the Constitution in American history.

“The insurance mandate clearly exceeds the federal government’s powers under the interstate commerce clause found in Article I, Section 8 of the Constitution,” writes Ron Paul. “This is patently obvious: the power to ‘regulate’ commerce cannot include the power to compel commerce! Those who claim otherwise simply ignore the plain meaning of the Constitution because they don’t want to limit federal power in any way.”

“The commerce clause was intended simply to give Congress the power to regulate foreign trade, and also to prevent states from imposing tariffs on interstate goods. In Federalist Paper No. 22, Alexander Hamilton makes it clear the simple intent behind the clause was to prevent states from placing tolls or tariffs on goods as they passed through each state — a practice that had proven particularly destructive across the many principalities of the German empire.”

Expect death panels to come back in a big way now that Obamacare is the law of the land. Now that there is no fear of political backlash, death panels will be sold as a measure to reduce medical costs which will predictably skyrocket (as costs do of anything government touches).

If you are skeptical of this, consider a recent report in Britain. “NHS doctors are prematurely ending the lives of thousands of elderly hospital patients because they are difficult to manage or to free up beds, a senior consultant claimed yesterday,” the Daily Mail reported last week.

It is being sold as a “death pathway” that is the equivalent of euthanasia of the elderly.

Wednesday, June 27, 2012

VIDEO: Global Agreements of Death and Destruction Under Agenda 21

The Economic Collapse Is Not A Single Event

The Economic Collapse
June 11, 2012

Many people hype "the coming economic collapse" as if it is some kind of big summer Hollywood blockbuster. Many people out there write about it as if it is something that will happen in a single day or over a few weeks and that it will suddenly change how the entire world functions. But that is not how the financial world works. The financial world is like a game of chess - very slow and methodical. Yes, there are times when things happen very quickly (like back in 2008), but even that crisis played out over a number of months. Sadly, most Americans are not used to thinking in terms of months or years. These days, most Americans have the attention span of a goldfish and most Americans have been trained to expect instant gratification. They are simply not accustomed to being patient and to wait for things. Well, despite what you may have read, the economic collapse is not going to be a single event. It is going to play out over quite a few years. In some ways we are experiencing an economic collapse right now. When the next major financial crisis occurs, many will be calling that "an economic collapse". But if you really want to grasp what is happening to us, you need to think long-term. We are heading for a complete and total nightmare, but it is going to take some time to get to the end of the story.

Yes, there will certainly be times of great chaos. The financial crisis of 2008 was one of those moments.

But the financial crisis of 2008 did not completely destroy us.

Neither will the next crisis.

I think it is helpful to think of what is happening to us as a series of waves.

When you build a beautiful sand castle on the beach, the first wave that comes in does not totally destroy it.

Rather, the first wave weakens the castle and it is destroyed by subsequent waves.

Well, that is what is happening to us.

The financial crisis of 2008 was a wave.

The epicenter of the next great financial crisis will be in Europe and that will be another wave.

For many, the next financial crisis will feel like "the end of the world" but it won't be.

There will be waves after that one that will be even worse.

Yes, the waves are going to start coming more rapidly and will start becoming more intense.

In that way, they will kind of be like birth pains.

But these problems did not build up overnight and they are not going to disappear overnight either.

A lot of people that write about the coming economic collapse seem to suggest that we should just let it happen so that the "recovery" can begin.

Unfortunately, it is not going to be so simple.

It took decades to build up a national debt of almost 16 trillion dollars.

It took decades for American consumers to build up the greatest consumer debt bubble in the history of the world.

It took decades to gut the economic infrastructure of the United States and ship millions of our jobs overseas.

These problems are going to plague us for a very long time.

Sadly, a lot of people out there seem to wish for an economic apocalypse. They seem to think that if the global financial system crashes that the government is going to disappear and we are going to start fighting with each other using sharp pointed sticks.

Well, it simply is not going to happen.

The U.S. government is not going to help you survive when things hit the fan, but it is not going to disappear either.

In fact, the federal government will probably try to grab more power than ever in an attempt to "restore order".

The governments of Europe are not going to disappear either. In fact, in the long run Europe is probably going to end up more "federalized" than ever even if the euro breaks up in the short run.

A lot of people out there seem to think that when the old system collapses that it will give them an opportunity to help put in a new system.

Sorry, but that is not going to happen either.

The powers that be are going to have their own ideas about what needs to happen.

They never like to let a good crisis go to waste, and they will certainly try to use every crisis to shape the world even more in their own image.

The coming economic collapse is going to play out over a number of years and it is going to be absolutely horrible.

Billions of people will deeply suffer because of it.

It will be unlike anything any of us have ever seen.

Personally, I believe that it will eventually be much worse than the Great Depression of the 1930s.

The United States is going to get hit particularly hard. The United States is going to lose its position as the leading economic power on the globe and the U.S. dollar is going to lose its position as the default reserve currency of the world.

If you thought that the unemployment crisis during the last recession was bad, just wait until you see what is coming.

We are heading for a complete and total unemployment nightmare in the United States. Unemployment is eventually going to soar well up into the double digits.

The U.S. government will try a wide variety of measures to try to "fix" things, and some will likely have some limited success.

But the debt-fueled prosperity that we are all enjoying now is going to come to an end.

Many communities all over America will degenerate into rotting cesspools.

There are going to be riots in our major cities, crime and looting will be absolutely rampant and it will seem like society is coming apart at the seams.

The U.S. government will likely respond by becoming more authoritarian than ever, and that will truly be frightening.

But all of this is going to play out over time.

Right now, things are not as good as they were five years ago.

A couple of years from now, things will be even worse. Many of us will look back and wish that we could return to the "good old days" of 2011 and 2012.

We are on a decline that is not going to stop. There will be little false bubbles of hope like we are in now, but they won't last long.

But just because the economy is falling apart does not mean that your life is over. Many that are busy preparing right now will be greatly blessed even in the middle of all the chaos.

And it is when things are the darkest that the greatest lights are needed.

Make the decision right now to be a light during the times ahead.

You can choose to let the times that are coming destroy you, or you can choose to make them the greatest adventure of your life.

The choice is up to you.

VIDEO: The Plan is to Implode The Global Economy

Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand

Michael Snyder
The Economic Collapse
Wednesday, June 27, 2012

How is money created? If you ask average people on the street this question, most of them have absolutely no idea. This is rather odd, because we all use money constantly. You would think that it would only be natural for all of us to know where it comes from. So where does money come from? A lot of people assume that the federal government creates our money, but that is not the case. If the federal government could just print and spend more money whenever it wanted to, our national debt would be zero. But instead, our national debt is now nearly 16 trillion dollars. So why does our government (or any sovereign government for that matter) have to borrow money from anybody? That is a very good question. The truth is that in theory the U.S. government does not have to borrow a single penny from anyone. But under the Federal Reserve system, the U.S. government has purposely allowed itself to be subjugated to a financial system in which it will be constantly borrowing larger and larger amounts of money. In fact, this is how it works in the vast majority of the countries on the planet at this point. As you will see, this kind of system is not sustainable and the structural problems caused by such a system are at the very heart of our debt problems today.

So where does money come from? In the United States, it comes from the Federal Reserve.

When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.

Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.

The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.

So why does the U.S. government go to all this trouble? Why doesn’t the U.S. government create the money itself?

Those are very good questions.

One of the primary reasons why our system is structured this way is so that wealthy people can get even wealthier by lending money to the U.S. government and other national governments.

For example, last year the U.S. government spent more than 454 billion dollars just on interest on the national debt.

Over the centuries, the ultra-wealthy have found lending to national governments to be a very, very profitable enterprise.

The U.S. Treasury bonds that the Federal Reserve receives in exchange for the money it has created out of nothing are auctioned off through the Federal Reserve system.

But wait.

There is a problem.

Because the U.S. government must pay interest on the Treasury bonds, the amount of debt that has been created by this transaction is greater than the amount of money that has been created.

So where will the U.S. government get the money to pay that debt?

Well, the theory is that we can get money to circulate through the economy really, really fast and tax it at a high enough rate that the government will be able to collect enough taxes to pay the debt.

But that never actually happens, does it?

And the creators of the Federal Reserve understood this as well. They understood that the U.S. government would not have enough money to both run the government and service the national debt. They knew that the U.S. government would have to keep borrowing even more money in an attempt to keep up with the game.

That is why I call the Federal Reserve a perpetual debt machine. The Federal Reserve was created to trap the U.S. government in an endlessly expanding debt spiral from which there is no escape.

And the Federal Reserve is doing a great job at what it was designed to do. Today, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was first created.

Another way that money comes into existence in our economy is through the process of fractional reserve banking.

I originally pulled the following simplified explanation of fractional reserve banking off of the website of the Federal Reserve Bank of New York, but it has been pulled down since then. But I still think it is helpful in understanding the basics of how fractional reserve banking works….

If the reserve requirement is 10%, for example, a bank that receives a $100 deposit may lend out $90 of that deposit. If the borrower then writes a check to someone who deposits the $90, the bank receiving that deposit can lend out $81. As the process continues, the banking system can expand the initial deposit of $100 into a maximum of $1,000 of money($100+$90+81+$72.90+…=$1,000).”

When you put your money into the bank, it does not say there. The bank only keeps a relatively small amount of money sitting around to satisfy the withdrawal demands of account holders. If all of us went down to the banks right now and demanded our money, that would create a major problem.

If I put 100 dollars into the bank and the bank lends out 90 of those dollars to you, now it looks like there are 190 dollars floating around. I have “100 dollars” in my bank account and you have “90 dollars” that you just borrowed.

The new debt that you have taken on (90 dollars) has “created” more money. But of course you are going to end up paying back more than 90 dollars to the bank, so more debt has been created than the amount of money that has been created.

And that is one of the big problems with our financial system. It is designed so that the amount of debt and the amount of money are supposed to be perpetually expanding, and the amount of debt created is always greater than the amount of money that is created.

So is it any wonder that our society is swamped with nearly 55 trillion dollars of total debt at this point?

A debt-based financial system is unsustainable by nature because it will always create debt bubbles that will inevitably burst.

Are you starting to see why so many Americans are saying that we need to abolish the Federal Reserve system?

Our founding fathers never intended for our financial system to work this way.

According to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is supposed to have the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.

So why has this authority been given to a private institution that is dominated by the big Wall Street banks and that has actually argued in court that it is “not an agency” of the federal government?

Thomas Jefferson once said that if he could add just one more amendment to the U.S. Constitution it would be a ban on all government borrowing….

I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.

But instead, we have become enslaved to a system where government borrowing actually creates our money.

The borrower is the servant of the lender, and we have allowed our government to enslave us to the tune of nearly 16 trillion dollars.

There are alternatives to this system. Things do not have to work this way.

Unfortunately, the vast majority of our politicians consider the Federal Reserve to be good for America and steadfastly refuse to do anything to change the status quo.

So if you are waiting for “solutions” to these problems on the national level you are going to be waiting for a very long time.

The debt problems that the United States and Europe are experiencing did not come into existence by accident. They are the result of fundamental structural problems with the financial system.

A debt-based financial system is always going to fail in the long run. Unfortunately, most Americans still do not understand this and so we will all get to suffer the consequences.

VIDEO: Gerald Celente - The 2nd American Revolution STARTS NOW!

Friday, June 22, 2012

25 Reasons To Buy Gold And Dump Dollars

Business Insider

Debt-based fiat money, which implies never ending debt and constant inflation, is not a sound, stable or sustainable monetary system. Major economic problems today, such as rising global commodity prices and the sovereign debt crisis, are not aberrations or inherent problems of capitalism, but are the inevitable consequences of a centrally planned system that, by design, produces never ending inflation, ever increasing centralization of financial power and increasingly extreme concentration of wealth.

Monetary systems that rely on debt-based fiat money can be accurately described as confidence games and the global cartel of central banks that exists today is similar to a criminal cartel, such as the drug cartel, except that the banking cartel has been legalized,can extort hundreds of billions from governments with impunity,and can conjure unlimited trillions out of thin air for its own benefit with no accountability. In stark contrast,hapless billions of people labor worldwide for single-digit hourly wages on an ever faster moving hamster wheel of inflation and debt.

Like a commodity, supply and demand is the putative basis for the value of money in the field of economics,but many economists and most investors know very little about the underlying structure of the monetary system. The legal and,in a systemic sense,mathematical structure of money is debt,i.e.,a note or debt instrument, thus money is the liability of its issuer (a government or central bank),rather than a tangible asset. Money,which is a purely legal construct (rather than a direct representation of a physical asset or an actual commodity),is created ex nihilo through legal agreements,such as mortgage loans,car loans,student loans,credit card charges,business loans,etc.,hence the term “fiat” money. Governments help banks to create money by borrowing for deficit spending (and by paying interest on the debt),but central banks create money directly through loans to banks or favored parties,debt monetization and asset purchases.

The reality of debt-based fiat money has many implications and consequences. The most important fact is probably that such a monetary system must constantly expand because,when money is debt,interest payments require the money supply (and debt levels) to constantly grow regardless of population growth or sustainable economic activity. In other words,debt-based fiat money systems are inherently inflationary and banks are in the inflation business. Monetary policy must favor inflation so that,overall,interest payments can be met,preventing the system from collapsing in a deflationary spiral of debt defaults. For this reason,the value of the U.S dollar has declined to the equivalent of roughly $0.03 since the founding of the Federal Reserve in 1913. The Federal Reserve’s supposed mandate of price stability is as absurd as it is impossible. In fact,the Federal Reserve itself,through its monetary policies,is the ultimate source of monetary inflation and the most general cause of rising prices.

A debt-based fiat money system,together with the monetary policies necessary to support it,eventually causes debt levels to grow to unsustainable levels, resulting in unsustainable economic aberrations,such as the dot-com and housing bubbles, and producing the boom and bust cycle of credit expansion and contraction, euphemistically called the “business cycle”. Obviously,infinite growth is impossible in a finite world and phenomena that increase by a significant percent per year,e.g., the money supply,increase exponentially,which does not characterize sustainable systems. Without debt-based fiat money,a massive U.S. federal government equal to roughly 35% of GDP,a gargantuan banking industry equal to 20% of the S&P 500,a vast military industrial complex costing hundreds of billions per year,and perpetual foreign wars costing trillions of dollars would be unlikely,if not impossible. Of course,a perfect monetary system has yet to be invented,but debt-based fiat money has more disadvantages than advantages,and the advantages accrue only to a select few.

A Broken Promise

When a transaction for goods takes place using debt-based fiat money one party holds goods and the other holds a note,which is a financial system asset of the holder but a liability of the issuing government or central bank,i.e.,money is a liability,not an asset,of the issuer. The most obvious question is whether the government or the central bank in question is good for the debt. Since fiat currencies are not redeemable,the only way the issuer can be good for debt is in terms of other fiat currencies,all of which decay in value over time. Fiat currencies are backed essentially by the words “full faith and credit” which,in a practical sense,refer to the government’s ability to tax its citizens. In reality,however,the words “full faith and credit” mean that fiat money is backed by hollow promises that history shows will eventually evaporate.

Fiat currencies,which have absolutely no tangible,physical backing or real,lasting value,depend solely and totally on the confidence of their users,exactly like a criminal confidence game. Of course,economics is a social science rather than a hard science but,since there are no mathematical models or equations that can accurately describe or predict all possible human action,confidence cannot be reliably manufactured or maintained through behavioral techniques independent of objective reality. Although fiat currencies can function as a unit of account and as a transaction medium,they fail with one hundred percent certainty as a store of value.

The U.S. dollar became a purely fiat currency in 1971 when the Nixon Administration ended the dollar’s convertibility to gold. In effect,the U.S. defaulted on its international gold debts in 1971,thus the current version of the U.S. dollar was born with a unilateral violation of the Bretton Woods Agreement. From that point,the world financial system quickly devolved into an abstract,mathematical representation of economic activity from which paper profits could be extracted through economic rent seeking,i.e.,manipulation of the financial system,rather than real economic activity. The replacement of redeemable U.S. Treasury certificates with Federal Reserve Notes substituted a promise to pay in gold or silver with a promise to pay nothing. The transaction medium (paper notes) was substituted for the value that it was originally intended to convey (physical gold and silver). Once the gold and silver of the American People was confiscated and the gold window was closed (ending the Bretton Woods Agreement),the global financial system became a closed symbolic system dominated by computer models but decoupled from the real world,with no direct linkage to real goods,tangible assets,or sustainable economic activity. The U.S. dollar continued as the world’s reserve currency simply because it remained useful,not because it was,in any real sense,valuable. Today,the perceived economic strength and political stability of the United States has all but disappeared.

The term rent seeking refers to the extraction of economic value (“rent”) through the manipulation of the social or political environment,as opposed to creating value from genuine economic inputs. Like parasitism,rent seeking involves obtaining wealth without reciprocating any benefit back to society through wealth creation. Debt-based fiat money is an example of economic rent seeking because banks,under the guise of providing necessary financial services,create the vast majority of the principal of any loan ex nihilo (based on reserve ratios set by central banks that typically allow 10:1 or greater leverage),allowing banks to collect interest and principle payments without creating any wealth for society. Unfortunately,the Monopoly money that flows from banks is often imprecisely referred to as “capital” when,in fact,it is debt.

As a currency, gold settles transactions in an absolute sense. When a transaction for goods is settled in gold,there is no residual liability. One party holds goods and the other party also holds finished goods,i.e.,gold bullion. Of course,today,gold transactions can be made electronically,e.g.,via In other words,both parties to a transaction hold physical property with no dependency on a government or central bank. There is no 3rd party liability and the middle man (a government or a bank) is cut out of the deal. Not surprisingly,both bankers and those who favor big government,or who consider government authority to be above the rights of individuals (statists),despise and disparage gold. While nominal gains in asset prices,artificially manufactured by inflation can be taxed,governments have no way to tax gains in the value of money itself and must resort to increasing taxes honestly,which,unlike inflation,requires the consent of voters. As John Maynard Keynes famously said,“By a continuing process of inflation,government can confiscate,secretly and unobserved,an important part of the wealth of their citizens. The process engages all the hidden forces of economic law on the side of destruction,and does it in a manner which not one man in a million is able to diagnose.”

Robbing the Poor through Inflation

Like all other debt-based fiat currencies,the U.S. dollar is dysfunctional as a store of value because it is no longer redeemable,because of the inflationary nature of the monetary system itself,and because both the federal government and the Federal Reserve lack monetary discipline. While the U.S. federal government engages in never ending and ever larger deficit spending,the Federal Reserve engages in debt monetization or “quantitative easing” (commonly referred to as printing money out of thin air),while holding interest rates near 0% to support the banking industry,equities and otherwise unserviceable government borrowing. As a result,the largest U.S. banks,together with Wall Street trading firms of all sizes,engage in rampant financial speculation using excess leverage,thus increasing volatility in stocks and commodity prices while undermining the stability of the financial system. All of the preceding issues increase the money supply independent of genuine economic activity,which is inflationary. The actual result,however,is currently stagflation in the U.S. The real value of wages and savings is falling because currency debasement and related economic and trade disruptions are causing prices to rise,but wages,in nominal terms,have remained flat or have declined due to high unemployment and weak economic growth.

While savvy investors may be able to profit from inflation,the vast majority of people are simply impoverished by stagflation. The income gap between the top 0.01% of Americans and the vast majority is as large today as it was in the 1920’s. Although there can be no objection to wealth derived from hard work,ingenuity and business acumen,the wealthiest 1% of Americans now own more than 33% of all wealth in the United States while the poorest 50% collectively own 2.5%. The growing disparity ultimately stems from the structure of the financial system itself,i.e.,central banking and debt-based fiat money. In other words,debt-based money causes an ever increasing concentration of wealth in the financial institutions to which debt is ultimately owed.

From the standpoint of ordinary workers,currency debasement is like a breach of contract where the agreement to work for a wage is violated by altering the value of the wage retroactively. Inflation transfers wealth to those who first receive newly created money. The Federal Reserve’s quantitative easing and asset purchase programs,for example,literally transfer wealth from Main Street to Wall Street by creating new money to purchase financial assets. Those involved in transactions using newly created money,e.g.,bond traders working for investment banks,bankers,etc.,are rewarded and can immediately leverage their new money to increase their assets or spend their gains at current value on consumption,but the value of previously existing money (in the hands of those who don’t work on Wall Street or for a bank),is diluted when newly created Monopoly money circulates. The result is a growing concentration of wealth in Wall Street trading firms and in banks linked to the Federal Reserve,e.g.,Primary Dealers such as Goldman Sachs and JP Morgan. Conversely,the vast majority of Americans have become systematically poorer. For example,middle income jobs have been replaced with low income jobs and low income jobs now account for 41% of all U.S. jobs.

As Americans became poorer over the last few decades,they also became more dependent on the government,e.g.,44 million Americans rely on Food Stamps and one out of every 6 Americans is on Medicaid. Indirectly,inflation therefore increases government debt. Like the socialist governments of Europe,the U.S. government has made too many promises,both at home and abroad,that simply cannot be kept even if the government were to cannibalize the remaining wealth of the American people,destroying what’s left of the U.S economy in the process. As a result,more money printing is inevitable. Even Gideon Gono,Governor of the Reserve Bank of Zimbabwe,infamous for his role in Zimbabwe’s hyperinflation,has become an outspoken critic of the United States and now supports a gold standard. Gono was awarded the 2009 Ig Nobel Prize in mathematics for “giving people a simple,everyday way to cope with a wide range of numbers by having his bank print notes with denominations ranging from one cent to one hundred trillion dollars” What is important,however,is that the root cause of inexorable inflation to infinity is exactly the legal structure of money as debt with interest attached to it issued by private banks that profit by creating money ex nihilo.

America: A Banker Snuff Film

With one exception,the banking industry operates in the same way as an organized crime syndicate. The exception is that in 1913 a group of bankers manipulated the Congress of the United States into passing the Federal Reserve Act,which made the scam of debt-based fiat money technically legal. The true purpose of the Federal Reserve Act was of course to entice the U.S. government into borrowing money because the government had the power to tax its citizens. Thus,the Federal Reserve Act gave a cartel of banks access to the wealth of American citizens through interest and principle payments made by the U.S. federal government out of tax revenue. The U.S. federal income tax is essentially a tax on American citizens levied by a banking cartel that rose to power in 1913 and that now dominates the government of the United States at all levels. As a consequence,the U.S. economy is maxed out on debt at every level,the U.S. government is held hostage by the banking cartel and the U.S. monetary system is reeling out of control near its logical “end of life.” One might say that bankers have “had their way” with the United States of America.

When governments pursue ambitions financed by debt,such as foreign wars or bank bailouts,against the will of their peoples,they financially enslave their citizens. If a government’s debt is backed by the wealth,labor and property of its citizens,the rights of government supersede the rights of individuals in a way that is incompatible with individual liberty. Specifically,individuals do not have an absolute right to own property,including their own labor. Thus,the labor and property of citizens is the property of the government and,actually,the property of the private banks that hold the government’s debt. This is the fundamental reason for the invention of central banking,i.e.,it allows banks to access the wealth of the people through the government’s power to tax. The result of this corrupt financial structure is a de facto tyranny where an anti-democratic global banking empire,built upon the debt servitude of all peoples,financially controls world governments,making democracy irrelevant,while nearly all-powerful bankers live better than kings.

Gold vs. Debt-Based Fiat Money

When currency debasement inevitably becomes extreme,governments refuse to accept one another’s currencies but,as noted by Alan Greenspan,“…in extremis gold is always accepted.” The International Monetary Fund (IMF),for example,accepts payments in gold for settlement of debts. Greenspan also wrote that “An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense…that gold and economic freedom are inseparable.” Without gold,banks can turn the financial system into a casino where they are guaranteed to win while ordinary citizens are stripped of their wealth and robbed of their financial futures through inflation. Without gold,governments can pursue endless wars funded by debt and build military empires while private banks that buy government bonds quietly collect the wealth of their citizens. If debt levels rise too high,banks reap huge profits at the expense of the overall economy,leaving behind a hollowed out shell set to collapse. In contrast,gold distributes wealth through the economy (as tangible private property) while fiat money concentrates wealth and financial power in the central bank and its dealers,as well as in the government.

Gold Debt-Based Fiat Money
1. Gold is a tangible financial asset with no bank or government liability. Fiat money is a debt instrument or note that is the liability of a government or bank.
2. Transactions in gold are fully settled. Both parties hold finished goods. There is no outstanding liability. Transactions in fiat money are not settled. One party always holds a note owed by a bank or government.
3. Gold certificates or electronic credits in allocated gold accounts are redeemable in a real,physical asset:gold. Fiat money is not redeemable. While it functions as a medium of exchange,it lacks any backing in terms of real assets.
4. Gold is,at all times,in all places and under all circumstances,universally accepted as money. National currencies are accepted according to agreements that,like any contract,can be breached or made legally void.
5. In extremis,gold is always accepted. In extremis,such as in a time of war,a national currency (or any form of paper money) may not be accepted.
6. Gold has intrinsic value. The economic inputs (labor and resources) used to produce a gold bullion coin or bar are still present,preserved as a finished product. Fiat money has no intrinsic value,except perhaps insofar as paper can be used,for example,as kindling to start a fire.
7. Gold is rare,valuable and difficult to produce in large quantities. Fiat money can be printed or instantly created electronically in unlimited quantities and at essentially no cost.
8. The rate of increase in the above-ground gold supply is,and has been throughout history,roughly the same as the rate human population growth. The supply of fiat money, because of its inflationary structure,always increases in excess of population growth or sustainable economic activity,thus it is destabilizing
9. Gold is a consistent measure of value over time and across economies. No fiat paper currency is or can be a consistent measure of value over time or across economies.
10. The value of gold,measured in real terms,is stable over long periods of time. The value of all fiat paper currencies is volatile and always declines in the long run.
11. Gold is durable and virtually all of the gold ever mined still exists today. Neither governments,nor banks,nor paper motes,nor even digital media are as durable as gold.
12. Gold serves as a store of value and a preserver of purchasing power. Its value,in terms of real goods,is about the same today as it was 2000 years ago. Measured in fiat money, prices inexorably rise. Fiat money inevitably loses value because the supply always increases in excess of population growth and sustainable economic activity.
13. Under a gold standard,economies can enjoy stability and sustainable growth. Of course they are not automatically immune to economic disruptions,e.g.,due to exogenous shocks. Money based on debt causes a never ending boom and bust cycle of credit expansion and contraction. Economic disruptions are directly caused by the monetary system itself.
14. Central banks,sovereign nations and investors of all sizes buy gold because its value is more stable than that of fiat money. The value of fiat money inevitably degrades over time,thus the wealth of fiat money holders is eroded (by inflation).
15. Gold has been regarded by virtually all peoples as the highest form of money throughout history (for at least the past 5000 years). Fiat money became the de facto international standard after 1971,only four decades ago.
16. As a currency,gold cannot fail because it is a real,physical commodity. Fiat money systems always, eventually fail. All fiat currency schemes throughout history failed.
17. Over thousands of years, gold has remained a de facto global standard largely outside the control of central banks or governments. Fiat money was created because it can be centrally controlled and manipulated by banks and governments to suit their own particular needs.
18. Gold enables people to shield their wealth from the collapse of governments and financial institutions. If a government collapses, its currency becomes worthless. Governments cannot truly guarantee the wealth of citizens against a banking system collapse.
19. Gold enables people to protect the fruits of their labor from confiscation by governments or banks through inflation and,therefore,to pass their wealth down through generations. Inflation is like a breach of contract where holders of fiat money are robbed of its value over time through inflation. If cash is passed down through generations it becomes less and less valuable over time.
20. Gold safeguards economic freedom and allows people to hold their wealth outside the reach of governments and banks. Fiat money allows governments or banks to arbitrarily decide the value of money and the financial fate of every person dependent on the currency.
21. Gold distributes wealth and financial power to the people. Fiat money concentrates wealth and financial power in banks and in the government,opening the door to limitless abuses.
22. Under a gold standard, governments cannot expand disproportionately relative to the underlying economy. The optimal size of government is perhaps 20% of GDP. Central banking was conceived in part to allow governments to expand,e.g.,to fund foreign wars through debt. Fiat money allows governments to grow to unsustainable levels. In the United States,combined government at all levels is equal to roughly 45% of GDP.
23. Gold prevents the banking industry from expanding disproportionately relative to the underlying economy. Fiat money allows the banking industry to expand to a point where it dominates the economy and government, and is a crushing,economic rent seeking burden on the economy.
24. Gold makes it relatively difficult for countries to pursue military adventures or to fund a large military-industrial complex. Fiat money allows governments to engage in wars and to build military empires as long as their currencies and debts are accepted.
25. Gold is a real commodity and naturally supports the free market. Fiat money entails central planning of the economy,i.e.,“monetary policy,” which opposes free markets.

Centralization and Systemic Instability

Central banking and debt-based fiat money require central planning of the economy,which is not only ineffective but diametrically opposed to free markets,individual economic freedom,and democracy. Central planning of the economy leads to systemic instability because human beings,who make monetary policy decisions,are invariably fallible. Further,it is simply not the case that a single policy is appropriate for all industries and regions,thus there is not and can never be a correct monetary policy for all economic activity. In other words,the fundamental concept of central banking is flawed independent of the debt-based fiat money scam (except from the standpoint of bankers because debt-based fiat money causes wealth and property to accrue to those who enjoy the extraordinary privilege of creating money).

Thanks to the Federal Reserve,extreme centralization of wealth and financial power is now a reality in the United States. Not coincidentally,the U.S. economy is an increasingly all-or-nothing system that leaves tens of millions behind. Only 66.8% of American men were employed in 2010,the lowest level ever recorded,because permanently unemployed individuals are no longer counted as part of the workforce. Individuals who are willing and able to work have been pushed out of the financial system and forced to depend on charity or on the government. Since unemployment in the United States is a deep,structural problem,permanently unemployed individuals are disenfranchised former members of society,i.e.,part of a permanent and fast growing underclass. To make matters worse,the majority of American households are now net recipients of government transfer payments. Tens of millions of Americans have,in effect,become wards of the state causing the federal government’s deficits and debt level to climb ever higher from record levels. Nonetheless,the more debt the government has,the more wealth and power the banking cartel commands. Interest on the U.S. federal government’s debt cost $413 billion in fiscal 2010 and that number is expected to roughly double over the next decade.

As a point of comparison,the services of bankers cannot actually be worth more to society,in terms of real wealth creation,than the services of those who build businesses,produce real goods and create jobs,but the concept of value is distorted by the nature of the financial system. As a result,bankers may enjoy multi-million dollar bonuses without having added a single new business,product or job to the economy. Arguably,such a financial system is a contrived fantasy world,where bankers,perhaps not unlike Lloyd Blankfein,Ben Bernanke,Jamie Dimon and Timothy Geithner,financially rule the world as its “financial royalty.” Why the public or government officials (ignoring political campaign contributions) place any confidence in these or similarly self interested “financial leaders” and the institutions they represent defies reason. What is important,however,is that the structure of the financial system (i.e.,central banking and debt-based fiat money) ultimately produces financial,economic,social and political instability as a consequence of never ending debt,constant inflation,central planning of the economy,centralization of financial power and extreme concentration of wealth.

Opting Out

Physical gold provides a way to preserve wealth outside of the inflationary currencies of the debt swamped U.S.,European countries and Japan,to name a few. Buying gold is an “opt out” decision,not only rejecting the supposed “full faith and credit” of corrupt governments,but also rejecting the inflation / debt-servitude paradigm of the global central banking cartel that currently has every developed nation in a financial stranglehold. The ancien régime of the U.S. federal government,the Federal Reserve and the U.S. dollar as the world’s reserve currency will clearly fail as a result of its inherent structural flaws. The U.S. monetary system has already begun to break down and is currently being supported by money printing,government deficit spending and by what are,in effect,financial attacks on sovereign nations,thus on their currencies,that make the U.S. dollar appear stronger. Schemes undreamed of may yet prolong the death rattle of the U.S. dollar but the outcome cannot be changed. Like all fiat currencies before it,the failure of the U.S. dollar will leave holders of U.S. currency and of U.S. debt with nothing but ridiculous coupons,like Zimbabwe’s defunct 100 trillion dollar notes. One can only hope that the opportunity will be taken to abolish the Federal Reserve,shut down the global debt-based fiat money scam,and break up the criminal central banking cartel.

VIDEO: Rio+20 Eco-Fascists Roll Out The Green Jesus!

Thursday, June 21, 2012

Astonishing ChiCom Article Provides Keys to New Global Money Secretly Planned by Elites

A.M. Freyed
June 21, 2012

Reform of monetary system … IMF should build multiple reserve currencies including SDR and supervise their issuance and cross-border capital flows … Today, the most urgent task for the G20 is reform of the international monetary system. With sharply fluctuating exchange rates, it is difficult to monitor international capital flows, identify financial risks in advance, and save the global system once a crisis happens. If the current international monetary system cannot be successfully reformed, a new great financial crisis will soon be upon us. So, the G20 should focus on its historical mission to urgently reform the international monetary system. – China Daily

Rigged Gold Market, A Secret Payoff To China … “Gold is a reserve currency, as far as the market is concerned,” Sprott Asset Management’s Eric Sprott told FinancialSense Newshour’s Jim Puplava in an Oct. 2011 interview. Sprott went on to say that central banks and the shrewd money know the endgame for the dollar will include gold as the backbone of a new global monetary system—a system that presently finds China sorely lagging in gold reserves when compared with the core EU nations and the U.S … – ETF Daily News

The world’s new monetary system is being constructed as we write. You can spot the evidence in various articles, both mainstream and alternative. This article will profile two such stories.

First, there is an ETF Daily News article entitled, “Rigged Gold Market, A Secret Payoff To China.”

It complements a most important article from China Daily entitled, “Reform of the Monetary System.”

Together these two recent articles may provide us with significant insights into what is REALLY going on.

According to the ETF Daily News, Western powers-that-be are secretly funneling gold to China in anticipation of a new monetary system now being constructed. China needs more gold to be part of the planned new world monetary order – or so the Daily News article suggests.

For those who believe in directed (conspiratorial) history, such a scenario is certainly believable. The global elites seem to be creating economic chaos in anticipation that they shall then be able to introduce a world currency – possibly one based on a bundle of currency and informally backed by gold.

This will not happen all at once, but will happen over time. If the euro fails, this will surely be an elite setback, but that does not mean the enterprise itself will be halted. The elites that want to run the world – and are willing to produce any amount of agony to get their way – don’t give up easily.

The globalist currency may be run by the elite-controlled International Monetary Fund and could built out of the current Special Drawing Rights (SDR) “super currency” that the IMF has been attempting to implement around the world.

The China Daily article provides us with astonishing confirmation of what may be the IMF’s role. China Daily is widely seen as a private mouthpiece of Chinese government policy.

Reading between the lines, the two articles provide further evidence that China’s top leaders – actually those secretly behind the public’s leaders – are on board with the globalist plans of Western elites.

This has been speculated about before because the paradigm that Western elites use is to ally with the people at the very top of a society. Often hostilities are commenced against such countries.

The idea is always to control the topmost leaders while positioning the opposing country as a threat in order to consolidate further domestic control.

In China, it’s been speculated that some specific dynastic families are involved in controlling that great country – and work with Western banking families such as the Rothschilds.

An alternative to this perspective is that of a three-headed shadow control that includes elements of the communist leadership (Mao was supposedly a “Soviet agent” – and the top Soviets in turn were allied with the West), the Hong Kong Tycoons (later entrants) and the Triads mafias.

This makes sense if one believes that the power players in Mainland China fled to Hong Kong during Mao’s reign and allied themselves with the Triads for purposes of developing political and criminal muscle.

Once China’s mismanagement had reached a critical level – after the failure of the Great Leap Forward – the stage was set for elite re-penetration of that vast state.

When one looks at China today, one sees a kind of Western parallel – but one that is even more extreme. The Chinese economic model is based on corrosive and inflationary central banking that has no doubt allowed elite interests to corral huge amounts of Chinese economic and industrial resources.

China is probably near the end of this particular cycle of monetary activity, with hundreds of empty skyscrapers and dozens of empty cities dotting the landscape. The ChiComs no doubt expect an implosion.

No, there will likely be no “soft landing.” This is providing the ChiComs with a further incentive to cooperate with Western elites to create a new monetary system built out of the old, collapsing one.

The China Daily article “Reform the Monetary System” provides us with an astonishingly detailed plan for how the new world currency is to come about.

Here are some of the points:

•The IMF should build multiple reserve currencies including SDR and supervise their issuance and cross-border capital flows.

•The G20 should set up a permanent secretariat within the International Monetary Fund to improve its policymaking and implementation capabilities.

•A diversified international monetary system should consist of multiple currencies, such as the Special Drawing Rights, the US dollar, the euro and the renminbi.

• A good way to start the reforms would be to encourage the use of Special Drawing Rights for a broader range of activities and to start reducing the weight of the US dollar in the reserve currency system.

The article explains that, “such reforms would mean granting the IMF the ability to conduct open market operations as the world’s central bank.”

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