Saturday, October 27, 2012

VIDEO: The Planned Economic Implosion! Catherine Austin Fitts on Alex Jones TV

Catherine Austin Fitts: The Looting Of America

Paul Joseph Watson
November 2, 2010

Former Assistant Secretary of Housing under George H.W. Bush Catherine Austin Fitts blows the whistle on how the financial terrorists have deliberately imploded the US economy and transferred gargantuan amounts of wealth offshore as a means of sacrificing the American middle class. Fitts documents how trillions of dollars went missing from government coffers in the 90’s and how she was personally targeted for exposing the fraud.
Fitts explains how every dollar of debt issued to service every war, building project, and government program since the American Revolution up to around 2 years ago – around $12 trillion – has been doubled again in just the last 18 months alone with the bank bailouts. “We’re literally witnessing the leveraged buyout of a country and that’s why I call it a financial coup d’├ętat, and that’s what the bailout is for,” states Fitts.

Massive amounts of financial capital have been sucked out the United States and moved abroad, explains Fitts, ensuring that corporations have become more powerful than governments, changing the very structure of governance on the planet and ensuring we are ruled by private corporations. Pension and social security funds have also been stolen and moved offshore, leading to the end of fiscal responsibility and sovereignty as we know it.

 Fitts explained how when she was in government she tried to encourage the creation of small businesses, new jobs and new skills to compete in a globalized world otherwise the American middle class was toast, only to be forced out by the feds using dirty tricks. The elite instead wanted Americans to take on more credit card, mortgage and auto debt that corporations and insurers knew they couldn’t afford, while quietly moving their jobs abroad in the meantime.

This is a key interview in understanding precisely how the financial collapse was deliberately planned from the outset as a means of eviscerating the American middle class and we encourage all our subscribers to watch it now at Prison by visiting the “video reports” section. Not a member? Please click here to subscribe and get instant access to this interview, along with thousands of hours of material, including daily access to the live video stream and video archives of The Alex Jones Show.

Catherine Austin Fitts: Black budget and leveraged buyout of world using stolen money

Video Rebel’s Blog
November 11, 2011

Catherine Austin Fitts said we are witnessing a Leveraged Buyout of the world that will permanently end democracy. The elite has bought all the politicians and the media. They have stolen enough money to earn 2 trillion dollars a year from their investments. She said 2 trillion dollars a year is sufficient to fund a world government.
Wall Street and the City of London have been given more money in Bailouts than the total amount of money the United States spent on all of its wars. Wall Street was also allowed to steal 4 trillion dollars from federal spending that we are not allowed to audit. When she was Housing Commissioner in the first Bush administration, she once saw on one city block ten government guaranteed loans on buildings that never existed.
Separately from that Jim Willie has said when the Federal Reserve sells Treasury bonds, they sell more than the deficit. This fraud has added trillions more to the LBO Buyout fund.
As I have said previously, the banks are allowed to launder a trillion dollars a year in drugs, 400 billion dollars a year in illegal weapons and 500 billion dollars in political bribes.
Catherine has written and spoken often of mortgage fraud. The bankers were allowed to sell each mortgage ten times. The Federal Reserve has been busy buying fraudulent mortgage backed securities to keep the bankers out of jail.
She said we were all heartened when the House voted against the Bailout in 2008. The bankers reversed that decision through three methods. They were able to donate money and give bribes which most voters are aware of. They are not aware of Control Files which have all the blackmail information on politicians. But with government databases run by private military contractors and smart meters reporting on activities inside our homes to IBM the bankers now have Control Files on everyone. They also have the right to kill anyone with impunity.
Catherine said this right to kill with impunity must be taken away from them.

The hardest thing for her to accept is to live with people who try to pretend there is no evil force out there. But she added more people are waking up every day.
She has suggested basic reforms. One would be for the government to release all expenditures by zip code. This would eliminate a lot of fraud. Another would be to end the practice of allowing defense contractors to form subsidiaries that pay and audit contracts awarded to their parent corporations. She aid that centralizing power in the hands of the elite is counter productive and and makes us all poor. She emphasized that as soon as those centralizing controls were lifted, we would have a rapid recovery.
Catherine urged us to accept this fact:
There are worse things than being killed by the criminals who have stolen your government and your money.

Catherine Austin Fitts: There Is No Fiscal Cliff In January 2013 Unless You Want It
October 26, 2012

Catherine Austin Fitts recently commented QE to Infinity and the Lie of the January Financial Cliff. She describes what the bankers are doing to us a Slow Burn. She believes that all assets are being taken away from us day in and day out and being given to the Global Elite offshore. She says there will be no January Fiscal Cliff unless we agree to let the bankers get away with it. Some say that we will not have enough money to pay our federal bills even with all those new taxes on those of us who still have jobs paying more than the minimum wage. She says all we have to do is to put back on the budget all of our stolen assets. The bankers are replacing what used to be our assets with liabilities (Treasury bonds) payable to them from us. That means they stole tens of trillions from us, charged us for the fraud they have committed and demanded we pay them again plus the interest on the money they created out of nothing to pay for the bonds we never needed to buy.
With respect to QE to Infinity Catherine says the purchase of Mortgage Backed Securities Bernanke recently announced is just a continuation of the undoing of the fraud perpetrated by Wall Street. We gave Wall Street 27 trillion dollars in subsidies to undo their mortgage fraud and to keep bankers out of jail while paying them billions in bonuses. It should be noted that the Federal Reserve has a Discount Window at which banks can sell collateral which includes toxic assets or more precisely Mortgage Backed Securities. This means after the collapse if anyone is left alive that Fed can sell those mortgages back to the banks at a discounted price. Of course the mega banks will demand you pay 100 cents on the dollar for a mortgage the taxpayers already paid for at least two or three times. But it is time you learned that bankers believe you must have less so they can have more.
Catherine was a managing partner at Dillon Read and Housing Commissioner under Bush I so she should be listened to when she speculates on where the Global Elite have been doing with the tens of trillions of dollars they have stolen from us. Obviously part of it went offshore to buy real assets in their name while saddling those of us us Left Behind in the USA with all those debts.
The following is her take on their long term strategy. She knew before the passage of the North American Free Trade Act that jobs would be shipped overseas. (12 million jobs and 56,000 manufacturing plants to be exact.) Her take was that the manufacturing jobs were being sent overseas to make money in Round One. In Round Two those jobs would be eliminated by robotics. A contact of hers in the Navy said America needs to produce 400,000 robotics engineers in 10 years. That means those Asian jobs will be going away too. America has a competitive advantage in that her natural gas is abundant and several orders of magnitude cheaper than in China and Europe. The combination  of cheap energy and robotics will reduce American productions costs in 2020 to be far less than Asia’s.
The fly in the ointment is this: American taxes will have to be huge to pay off all those programs Americans paid for. That is where the Fiscal Cliff, Monsanto, vaccines and the Secret Pentagon-NASA budget comes in. Catherine does not watch TV but did see a documentary on the Phoenix Lights, a UFO seen by tens of thousands over Phoenix. Her take was that if it were real then Lockheed Martin was paid 4 trillion dollars in stolen money to build it. She thinks a lot of our money was taken from us to build advanced weapons systems because those who steal money are few and those who were robbed are many.
Catherine moved to a remote rural area in 1999 for security reasons. She has noticed a steady decline in energy levels and in the health of people she has observed over the past 13 years. She has also remarked that when she speaks overseas she notices the audiences appear to be more energetic and healthier than Americans. She attributes the decline in American health to Monsanto and Genetically Modified food. I would add vaccines and fluoride in the water to that. American hospitals never use a clean needle when there is a dirty needle available.
Catherine says that the world’s need for oil and that pricing oil in dollars has allowed the US to print dollars to buy things from overseas for free. As long as the US Navy patrolled the seas attacking anyone who sells oil in currencies other than dollars, the value of the dollar was maintained. When that day ends, she said a dollar might be worth ten cents. The bankers knew that they could not keep a lid on cheap energy forever so they had to prepare for the destruction of the Petrodollar and for a new commodity backed currency. The bankers could control that would allow them to maintain power over the masses seeking revenge. In the short term there is a possibility of a gold standard. The bankers stole all the gold from Fort Knox and leased gold from other governments which they sold five times. The Next Big Swindle is a fractional reserve gold exchange standard. The bankers sell us back at a huge markup the gold they stole from us. As soon as our national debts are doubled to pay for the return of the stolen gold, they will release free energy so we can desalinate the oceans to grow food producing gold as a by product of desalination for $50 an ounce.

Catherine says that the bankers will try to maintain control over us by limiting our food choices to Genetically Modified Organisms from Monsanto. That plus owning our mortgages and the National Security State will – the bankers hope- keep us in line. The Department of Homeland Security is licensing us to work so in the future people who do not say nice things about Wall Street will be lucky to find a job cleaning the bathrooms at McDonalds.
Another possibility is that if the people revolt the bankers use those advanced bio-weapons to eliminate 7 billion people they do not need. Alex Jones says that he thinks the bankers had the taxpayers pay for  those 30,000 drones so  they can spray us with ebola if we get uppity. America has 3,000 counties so that is 10 drones per county.
Catherine says we are given a choice in November between a Goldman Sachs Monsanto man of the Left and a Goldman Sachs Monsanto man of the Right. What we need to do is to have an alternative press tell them No to the Fiscal Cliff. Return the stolen money. I have written of a plan to get control of the broadcast media designed for times like these. It is listed in the Notes below.
I have said we are going into Martial Law soon after the elections no matter who is elected in November. I also said that we need the military which does have access to those secret weapons to side with us. I have also said it would be a lot easier for the US military to invade Lichtenstein and the Cayman Islands to make sure that stolen money is returned than to launch WW III in the Persian Gulf to keep the price of oil high.
If you want to get control of the media, consider this:

Hit The Media At Their Weak Point: Pull Their FCC Licenses
If you want to read more about the US military seizing tens of trillion of dollars in stolen assets, please consider this:
Memo To Pentagon: Compare The Invasion Of Lichtenstein And The Cayman Islands To War With Iran And Syria

If you want to read about workable plans to cancel debts, and fractional reserve banking and get the economy moving again, please consider these two articles:
The New Economics, Radical Solutions Required And Offered

IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.

Finally, this last article will introduce you to some more of Catherine’s background:
The Essential Catherine Austin Fitts Reader

Friday, October 26, 2012

8,803,335: Another New Record for Disability—Up 975 Per Day Under Obama

Terence P. Jeffrey
CNS News
October 26, 2012

The number of American workers collecting federal disability insurance benefits hit yet another record high in October, according to the Social Security Administration.
This month 8,803,335 disabled workers are collecting benefits, up from the previous record of 8,786,049 set in September.
In February 2009, the first full month after President Barack Obama took office, there were 7,469,240 workers collecting federal disability insurance. Thus, so far in Obama’s term, the number of workers collecting disability has increased by 1,334,095. That works out to a net increase of about 29,646 per month (1,334,095 divided by 45 months), or an average increase of about 975 per day (1,334,095 divided by 1,369 days).

Full article here

VIDEO: More Vaccine And GMO Tyranny

Thursday, October 25, 2012

37 Facts About How Cruel This Economy Has Been To Millions Of Desperate American Families

Michael Snyder
Economic Collapse
Oct 24, 2012

Have you ever laid in bed awake at night with a knot in your stomach because you didn’t know how your family was possibly going to make it through the next month financially?  Have you ever felt the desperation of not being able to provide the basic necessities for your family even though you tried as hard as you could?  All over America tonight, there are millions of desperate families that are being ripped apart by this economy.  There aren’t nearly enough jobs, and millions of Americans that actually do have jobs aren’t making enough to even provide the basics for their families.  When you have tried everything that you can think of and nothing works, it can be absolutely soul crushing.  Today, one of my regular readers explained that he was not going to be online for a while because his power had been turned off.  He has been out of work for quite a while, and eventually the money runs out.  Have you ever been there?  If you have ever experienced that moment, you know that it stays with you for the rest of your life.  If you are single that is bad enough, but when you have to look into the eyes of your children and explain to them why there won’t be any dinner tonight or why they have to move into a homeless shelter it can feel like someone has driven a stake into your heart.  In this article you will find a lot of very shocking economic statistics.  But please remember that behind each statistic are the tragic stories of millions of desperately hurting American families.
Over the past decade, things have steadily gotten worse for American families no matter what our politicians have tried.  Poverty and government dependence continue to rise.  The cost of living continues to go up and incomes continue to go down.  It is truly frightening to think about what this country is going to look like if current trends continue.
The following are 37 facts that show how cruel this economy has been to millions of desperate American families…
1. One recent survey discovered that 40 percent of all Americans have $500 or less in savings.
2. A different recent survey found that 28 percent of all Americans do not have a single penny saved for emergencies.
3. In the United States today, there are close to 10 million households that do not have a single bank account.  That number has increased by about a million since 2009.
4. Family homelessness in the Washington D.C. region (one of the wealthiest regions in the entire country) has risen 23 percent since the last recession began.
5. The number of Americans living in poverty has increased by about 6 million over the past four years.
6. Median household income has fallen for four years in a row.  Overall, it has declined by more than $4000 over the past four years.
7. 62 percent of middle class Americans say that they have had to reduce household spending over the past year.
8. According to a survey conducted by the Pew Research Center, 85 percent of middle class Americans say that it is more difficult to maintain a middle class standard of living today than it was 10 years ago.
9. In the United States today, 77 percent of all Americans are living to paycheck to paycheck at least some of the time.
10. In the United States today, more than 41 percent of all working age Americans are not working.
11. Since January 2009, the “labor force” in the United States has increased by 827,000, but “those not in the labor force” has increased by 8,208,000.  This is how they have gotten the unemployment numbers to “come down”.
12. Sadly, 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.
13. Today, about one out of every four workers in the United States brings home wages that are at or below the federal poverty level.
14. Right now, the United States actually has a higher percentage of workers doing low wage work than any other major industrialized nation does.
15. At this point, less than 25 percent of all jobs in the United States are “good jobs”, and that number continues to shrink.
16. There are now 20.2 million Americans that spend more than half of their incomes on housing.  That represents a 46 percent increase from 2001.
17. According to USA Today, many Americans have actually seen their water bills triple over the past 12 years.
18. Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
19. In 1999, 64.1 percent of all Americans were covered by employment-based health insurance.  Today, only 55.1 percent are covered by employment-based health insurance.
20. Health insurance premiums rose faster than the overall rate of inflation in 2011 and that is happening once againin 2012.  In fact, it has been happening for a very long time.
21. According to one recent survey, approximately 10 percent of all employers in the United States plan to drop health coverage when key provisions of the new health care law kick in less than two years from now.
22. Back in 1983, the bottom 95 percent of all income earners had 62 cents of debt for every dollar that they earned.  By 2007, that figure had soared to $1.48.
23. Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
24. Total consumer debt in the United States has risen by 1700 percent since 1971.
25. Recently it was announced that total student loan debt in the United States has passed the one trillion dollar mark.
26. According to one recent survey, approximately one-third of all Americans are not paying their bills on time at this point.
27. Right now, approximately 25 million American adults are living at home with their parents.
28. The percentage of Americans that find that they are able to retire when they reach retirement age continues to decline.  According to one new survey, 70 percent of middle class Americans plan to work during retirement and 30 percent plan to work until they are at least 80 years old.
29. The U.S. economy lost more than 220,000 small businesses during the recent recession.
30. In 2010, the number of jobs created at new businesses in the United States was less than half of what it was back in the year 2000.
31. Back in 2007, 19.2 percent of all American families had a net worth of zero or less than zero.  By 2010, that figure had soared to 32.5 percent.
32. Approximately 57 percent of all children in the United States are living in homes that are either considered to be either “low income” or impoverished.
33. In the United States today, somewhere around 100 million Americans are considered to be either “poor” or “near poor”.
34. In October 2008, 30.8 million Americans were on food stamps.  Today, 46.7 million Americans are on food stamps.
35. Approximately one-fourth of all children in the United States are enrolled in the food stamp program.
36. Right now, more than 100 million Americans are enrolled in at least one welfare program run by the federal government.  And that does not even count Social Security or Medicare.
37. According to the U.S. Census Bureau, an all-time record 49 percent of all Americans live in a home where at least one person receives financial assistance from the federal government.  Back in 1983, that number was less than 30 percent.
What makes all of this even more frightening is that many homeless shelters and food banks around the nation are so overloaded at this point that they are already over capacity.  Just consider this example
When Janice Coe, a homeless advocate in Loudoun County, learned through her prayer group that a young woman was sleeping in the New Carrollton Metro station with a toddler and a 2-month-old, she sprang into action.
Coe contacted the young woman and arranged for her to take the train to Virginia, where she put the little family up in a Comfort Suites hotel. Then Coe began calling shelters to see who could take them.
Despite several phone calls, she came up empty. Coe was shocked to learn that many of the local shelters that cater to families were full, including Good Shepherd Alliance, where Coe was once director of social services.
“I don’t know why nobody will take this girl in,” Coe said. “The baby still had a hospital bracelet on her wrist.”
Keep in mind that Loudoun Country is smack dab in the middle of one of the wealthiest areas of Virginia.
So if things are that bad in the wealthy areas, exactly how bad are things getting in many of the poorer areas?
Unfortunately, things continue to get worse for this economy.  DuPont has just announced plans to eliminate 1,500 jobs.  There are more major layoff announcements almost every single day.  So how bad will things get when ourcrumbling economic system finally collapses?  When kind of chaos will be unleashed all over the nation when millions upon millions of Americans finally lose all hope?
In the introduction to this article, I mentioned that one of my regular readers has had his lights turned off.  The following is how he described his situation
No gas, no water, no electricity at my house. Couldn’t pay the bills. I’m broke. Desperately searching for any means of income, or at least enough cash to get the juice (electricity) restored.
Typing this missive in a dark house using the battery on my laptop. Feels like I’m camping out at home. Hope to get this situation fixed tomorrow… somehow. Needless to say, I *…. hate this.
I was ready for this, but it is still a major league inconvenience. For those of you who DO have power, etc. – and are not ready… oh brother. You need to get ready. Seriously, you do. Because what I’m going through is just an inconvenience. It may someday be a normal occurence. Ugh. (expletives deleted)
Hopefully a way can be found to get his situation turned around, but the truth is that there are tens of millions of other similar stories out there in America today.
What about you?  What are things like in your neck of the woods?  Please feel free to share your thoughts below…

TSA Thugs to Serfs: ‘It’s ALWAYS Your Fault’

Becky Akers
Lew Rockwell Blog
Oct 25, 2012

Those bungling cretins at the TSA have now lost a cat: “Iris Yu left a lot behind when she left Queens to care for her ailing father in Taiwan 10 months ago. But she was finally set to reunite with her cat, Xiaohwa, courtesy of a friend who was leaving for Taiwan last Thursday and agreed to take the cat to her. When a Transportation Security Administration officer [sic for ‘busybody’] at Kennedy International Airport inspected Xiaohwa’s crate just before departure, though, the cat darted and disappeared into the bowels of Terminal 4.”
And what is the TSA’s response? An abject apology? A vow to quit prying into “crates” where government has absolutely no business going in the first place? Nope. As usual, it blamed the victim. One of its multitude of  spokesliars “said in a statement: ‘T.S.A. officers screened the pet and its carrier properly. It is unfortunate that the pet is missing at the airport. But, as a reminder, passengers are responsible for their pets throughout the screening process.’”
Meanwhile, as ABC News continues to document the Thieves and Sexual Assailants’ robberies of passengers, the agency “offers several tips to travelers to reduce the chances of thefts.” And no: “don’t ever fly commercially because we’re all kleptomaniacs who would steal your skin if it weren’t fastened to you” and “order those criminals up on Capitol Hill who pretend they ‘work’ for you to disband us” aren’t among them. Rather, the passenger is to blame when the TSA steals his stuff because he wasn’t sufficiently vigilant: “Never let your belongings out of your sight when possible” — love the “when possible” because the TSA itself requires passengers to “let their belongings out of their sight” — “never pack anything valuable in checked baggage; always carry your own purse, wallet, passport and other valuables; always watch your belongings as they advance through X-ray equipment; and be aware of your surroundings and the people around you.”
Take that, all you victims mourning the loss of iPads, money, jewelry and cats: it’s your own fault.

There Is No National Debt Unless You Want It
October 25, 2012

The US federal debt is 16 trillion dollars – 20 trillion if you add in state and local government debts – but it could just as easily be zero dollars if we had the monetary system Benjamin Franklin described to the people of London in the 1760s. Englishmen could not understand why the American colonies had no poor houses and unemployed. He explained that if a colony needed to build a bridge or to fight a colonial war against the French they issued money which was retired from circulation as people paid taxes. The New England colonies did print too much money to support of England’s wars against the French in Canada.
The important point is that there was no interest paid and no debt issued. Contrast that to the Federal Reserve which churns out fraudulent and fictional debt by the trillions. The interest on the federal debt is over 500 billion dollars a year. If Ben Bernanke were not printing money to buy bonds, the interest rate would have to at least equal the inflation rate of 10% which would give us an annual bill of two trillion dollars.
Carmen Reinhart and Kenneth Rogoff wrote This Time Is Different: Eight Centuries of Financial Folly which was released in October 2009. They told us that when the total public debt of any nation exceeds 90% of its Gross Domestic Product that it will eventually default. The US GDP if properly adjusted by subtracting the 2012 US deficit of 1.275 trillion dollars is 114% of GDP. If you add in 4 trillion dollars for US state and local debts, you will discover that total US government debt is 20 trillion dollars or 143% of GDP. If you add government guarantees like Fannie Mae’s underwater mortgages, then you will understand why the Federal Deposit Insurance Corporation will no longer guarantee all of your American bank deposits beginning in January of 2013. It seems the FDIC and the Federal Reserve are preparing for your future when the bankers decide to push you off that financial cliff in January.
Dr Steve Keen who champions Debt Cancellation says we have the highest total level of public and private debt in 500 years. Depressions cancel Unpayable Debts through bankruptcies, defaults, wage cuts and Austerity.That means we will have the Greatest Depression in 500 years if we do not have a systematic and scientific worldwide program of Debt Cancellation.
You have no future other than nationwide food riots. unemployment, bankruptcy and Hyperinflation if you do not demand the government issue a non-interest bearing currency, ban fractional reserve banking and cancel all government debt.
Even the IMF has been backing monetary reform by saying how well Iceland has been doing since it decided that the public should not pay for the losses of criminals who ran banks. Two IMF economists endorsed the Chicago Plan which could have ended the Depression in 1933 when it was published and could do the same today. You can read about that in detail below. I also outline how Debt Cancellation would work. Ideas are not the problem. We have no lack of workable ideas.
If we do not have monetary reform very, very soon, six billion or more real human beings will be dead really soon. That death toll estimate was from MIT not me.
The world is down to its last few weeks and possibly months before the whole world spirals into disaster.
I realize I have said this before. But what has changed is that we are running out of time.
Notes: This first article outlines how IMF economists have finally admitted that what they were doing was wrong.
IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.
This next article tells how Debt Cancellation would work.
The New Economics, Radical Solutions Required And Offered
Catherine Austin Fitts; There Is No Fiscal Cliff In January 2013 Unless You Want It
The Chinese Are Buying Gold As If They Knew The Dollar Would Die Very Soon

VIDEO: Lord Mockton on The Green Tyranny of Environmentalism

VIDEO: Obama's Muslim Ring to Worship Allah

European Union Lauds Soviet State

Kurt Nimmo
October 25, 2012

Although the Soviet Union officially ended in 1991, apparatchiks working in the name of European “integration” are using the communist hammer and sickle, the coat of arms of organized mass murder. The symbol appears on a poster for the European Commission, the executive body of the European Union.
“For three generations, the badge of the Soviet revolution meant poverty, slavery, torture and death,” writes Daniel Hannan. “It adorned the caps of the chekas who came in the night. It opened and closed the propaganda films which hid the famines. It advertised the people’s courts where victims of purges and show-trials were condemned. It fluttered over the re-education camps and the gulags. For hundreds of millions of Europeans, it was a symbol of foreign occupation. Hungary, Lithuania and Moldova have banned its use, and various former communist countries want it to be treated in the same way as Nazi insignia.”
The symbol of German fascism, the swastika, is of course absent from the design. But if the rulers of the EU were honest, they’d include it too. In fact, it would replace the communist hammer and sickle as the dominant symbol on this advertisement.
As the Red House Report revealed, the Nazis planned for a Fourth Reich as the Third Reich crumbled. “The Third Reich was defeated militarily, but powerful Nazi-era bankers, industrialists and civil servants, reborn as democrats, soon prospered in the new West Germany. There they worked for a new cause: European economic and political integration,” writes Adam Lebor.
Paul Joseph Watson cited Lebor in 2009. “Lebor reveals how he uncovered US Military Intelligence report EW-Pa 128, also known as The Red House Report, which details how top Nazis secretly met at the Maison Rouge Hotel in Strasbourg on August 10, 1944 and, knowing Germany was on the brink of military defeat, conspired to create a Fourth Reich – a pan-European economic empire based around a European common market,” Watson writes.
A decade later, former SS Officer Prince Bernhard of the Netherlands was gathering the “future Dictators of Europe” at the Bilderberg Hotel in Oosterbeek, Holland. By 1955, they were plotting the European Union and a single European currency nearly forty years before the Maastricht Treaty in 1992.

VIDEO: Investigative Journalist Greg Palast Says "Get Ready for Massive Voter Fraud"!

VIDEO: The Latest Martial Law, Secret Arrest And Property Confiscation News

Wednesday, October 24, 2012

Bernanke Set To Unveil Number Larger Than “Eternity”
October 24, 2012

It was just over a month ago that the Chairsatan formalized the incorrect named QE 3, aka the open-ended QEternity, whose purpose, for now, was to increase the Fed’s balance sheet by $40 billion/month in new MBS purchases. Well, according to MarketWatch, whose previously unheard of Greg Robb is seemingly vying for the role of Jon Hilsenrath, Ben Shalom is preparing to unveil a number bigger than eternity: ” After historic changes last month, Federal Reserve officials this week will discuss a possible expansion of the size of its third round of bond buying and better ways to guide markets about future policy actions.” Just because $40 billion per month in new flow is apparently not enough, and because the market is now well below the level it was when “QE 3″ was announced.
Of course, reading the fine-print indicates nothing new, and merely confirms what we said the same day QE3 was announced: “… the central bank will consider whether to expand its bond-buying at the end of the year to take account of Treasury purchases under its Operation Twist plan that finishes at year-end.” In other words, instead of ending Twist, which it can’t as this is an incremental $45 billion in long-end “flow” added to the market each month, the Fed will merely roll it into an unsterilized program, that will expand the Fed’s balance sheet not by $40 but by $85 billion per month. Of course, those who look at the Balance sheet in terms of ten year equivalents, know this all too well already, and know that there is no way that the Fed will halt Twist in just two months without replacing it with an unsterilized program, for the simple reason that the Fed’s holdings of sub 3 year debt are on the verge of running out.
From MarketWatch:
There are no pressures on the Fed for immediate action on these two fronts, economists said.
“I think they are reasonably comfortable with the market reaction [to QE3] and the way the economy has turned out,” said Michael Hanson, an economist with Bank of America Merrill Lynch.
Robert DiClemente, chief U.S. economist at Citigroup, noted that, in the wake of QE3, Citi’s financial-conditions index has reached its most accommodative reading since the Fed began easing more than five years ago. “At its current reading, the financial-conditions index is consistent with above-trend growth in final demand, an important prerequisite for stronger hiring and meeting policy goals,” DiClemente wrote in a note.
At the moment, the Fed is buying $45 billion of long-term Treasurys each month under its Operation Twist program, with the purchases offset by sales of shorter-term securities. Many economists think the Fed will decide to expand QE3 by that amount, and with Treasurys instead of MBS. But the announcement is not expected to come until its December meeting.
In other words, nothing new as this is precisely what we explained would happen on September 13. However, it is good to know that with each passing day the Fed is boxing itself ever more into a corner, as there is no way on this earth that Bernanke will be able to unwind a $5 trillion balance sheet (which is what it will be in 2 years), without destroying every last trace of the equity (and likely) other capital markets, unless there is a concurrent bout of hyperinflation.

Corzine Tells Judge That Due To Purchase Of 50,000 MF Global Shares Before Bankruptcy, He Must Acquit

Zero Hedge
Oct 24, 2012

That former Goldman, New Jersey and MF Global head Jon Corzine is absolutely convinced he is innocent of any client money vaporization or wrongdoing, and that the definition of the phrase “to Corzine (verb- to trust your money to a prominent individual and to find it has mysteriously disappeared)” is absolutely arbitrary, is not news to anyone. And if not convinced then at least at a complete loss to what actually happened. One just had to recall all the “I don’t recalls” the Honorable Corzine told congress during the makeshift kangaroo court hearing on MF Global’s collapse (even if the final outcome was less than desired).  So it’s only logical that the Honorable Corzine asked a federal judge to “toss a civil fraud lawsuit accusing him of misleading investors about the risky bets the futures firm was taking before its collapse a year ago.” The WSJ reports that “Corzine’s lawyers blasted the investors’ suit as a “jumble of assertions and accusations” that makes “no sense” that should be dismissed in a filing Friday in U.S. District Court in New York.” The plainitffs, now led by Virginia Retirement System, “sued Mr. Corzine, other company executives and the banks that backed the trading firm, claiming they failed to disclose the risks associated with MF Global’s European sovereign debt trades using repurchase-to-maturity transactions.”
But here is the kicker: MF Global may have mismanaged trades, Corzine’s lawyers admit, but he sure didn’t hide the risks or mislead investors about the firm’s risk appetite or liquidity. Why? Because he was so convinced in the profitability of MFG he bought a whopping 50,000 MF Global shares in the open market two months before the firm collapsed. So let’s get this straight: Corzine invested awhopping $225,000 (as a reminder, Corzine was CEO of Goldman Sachs for years) because he believed in the firm and not to give the impression that the firm was “safe” in order to avoid a full blown panic once the realization its was insolvent could no longer be hidden, and be wiped out on all of his stock, option and other MFG holdings? And this is what sophisticated lawyers use as evidence of his innocence? Seriously?
Since we are rather speechless here, we hand it over to the WSJ:
Indeed, the investors’ claim that Mr. Corzine participated in a fraud “makes no sense” because, just two months before the company collapsed, he bought over 50,000 shares of MF Global stock on the open market. His lawyers argue Mr. Corzine’s stock purchase belies the investors’ claim that he sought to defraud them.
As lawyers for the banks that underwrote MF Global’s securities noted, trading firms can go under without fraud.
“Companies sometimes fail because of unsuccessful business strategies,” said lawyers for the underwriters. “However regrettable that reality, courts long have taught that such failures alone do not give rise to claims under the federal securities laws.”
Mr. Corzine’s large bets on bonds of troubled European countries panicked investors and led to the firm’s undoing. As MF Global frantically tried to sell assets and negotiate a rescue deal, the firm dipped into customer funds that aren’t supposed to be touched under federal regulations.
He testified before Congress last year that he was unaware of a shortfall in customer assets at MF Global until hours before its bankruptcy filing.
The Justice Department and regulators at the Commodity Futures Trading Commission and Securities and Exchange Commission have looked into MF Global’s demise to determine if there was any intent to remove money from customer accounts that should have been kept separate from the firm’s own funds under federal rules. To date, neither Mr. Corzine nor others at MF Global have been charged with a crime.
Sorry, we are still speechless… Because apparently if one dumps a massive 0.01% of their net worth as a sunk cost whose sole purpose is to give the optical impression that all is well, when the only purpose is to buy time from gullible investors, then, then… one may get the impression that Spain, which is doing precisely this is also… no, it’s unpossible… broke!?
And that just can’t be.

VIDEO: Nigel Farage – ‘Bailouts’ are a means for total subjugation to EU control

The Fiscal Cliff, the Fiscal Gap, and the Lame Duck Congress

Bob Adelmann
New American
Oct 24, 2012

Private congressional conversations about how to keep the country from racing off the fiscal cliff in January are already taking place in Washington, but few are willing to give many details. With the promise of anonymity, congressional staffers from both sides of the aisle are working feverishly to come up with solutions to the onrushing fiscal train wreck.
Investigator Richard Rubin, writing for Bloomberg, said the Republicans are building a “toolbox” of options — including raising taxes — that could be used during the lame duck session following Election Day. Which tools will be used depends on how the elections turn out. Likewise, Democrat staffers are developing their game plans as well, but tax cuts are not in their “toolbox” according to unnamed parties familiar with the discussions.
Which tools each side will be using depends upon if the Democrats retain control of the Senate and the White House, but fail to gain control of the House. If Romney wins, and the Senate goes Republican, then certain tools in the Republican toolbox will never see the light of day, including tax increases and cuts in military spending.
Of course, if the “Grand Bargain” fails once again to materialize, then there will be a massive $600 billion “speed bump” that starts on January 1, including tax hikes on the wealthy as the Bush tax cuts expire, increases in payroll taxes as the “tax holiday” ends, and the automatic cuts in defense and domestic programs — sequestration — take hold. Ordinary income, capital gains, and dividend income taxes would also increase, costing the average family an estimated $3,500 a year.
At present, while the Democrat staffers are “favorable about their electoral chances,” according to Rubin, they are considering various scenarios, just in case. Rubin says, however, that tax cuts are off the table, regardless.
As the slow-motion train wreck speeds up and January 1 gets closer, each side thinks the other will be in the mood to compromise, according to Rubin. Regardless of the electoral outcome, someone is going to be disappointed.
J.D. Foster, a senior fellow at the Heritage Foundation, thinks the compromise will include some tinkering with a few of the entitlement programs (i.e., Social Security, Medicare, and Medicaid) as well as some modifications to the tax code (i.e., removing various tax breaks) which will be offset by a “down payment” (i.e., a bribe) of some tax hikes and spending cuts to bring both sides together. It will be sausage-making at its finest.
It will also mean essentially nothing in the grand scheme. By Boston University Professor Laurence Kotlikoff’s calculations these moves are just tinkering, simply because the real deficits are so much larger that no one wants to talk about them. Wrote Kotlikoff back in August:
Republicans and Democrats spent last summer battling how best to save $2.1 trillion over the next decade. They are spending this summer battling how best to not save $2.1 trillion over the next decade.
In the course of that year, the U.S. government’s fiscal gap — the true measure of the nation’s indebtedness — rose by $11 trillion. [Emphasis added.]
Kotlikoff labels the difference between the government’s expected revenues versus the government’s promises, calculated over the next 75 years, the fiscal gap. He used data from the Congressional Budget Office as the starting point, and included every promise the government has made to anyone — the Chinese, the Japanese, the Federal Reserve, beneficiaries of every social entitlement program, etc. — and added it all up. The total the government owes, beyond what it is expected to take in, on a present value basis is a headache-inducing $222 trillion — 15 times the country’s current gross domestic product.
The reasons the number is so incomprehensibly large:
Part of the fiscal gap’s growth reflects changes in policy, such as the Bush and Obama tax cuts, the introduction of Medicare Part D, and the expansion of defense spending.
Part reflects “natural” growth of existing programs, including growth in Medicare and Medicaid reimbursement rates.
And part reflects the demographic time bomb U.S. politicians are blithely ignoring.
That’s why the back-room, closed-door maneuverings by Republican and Democrat staffers will amount to nothing. The real solutions to the problem of the fiscal gap are so far away from the juggling, finagling, tinkering, and maneuvering that is going on there that staffers would likely struggle even to mention them. Says Kotlikoff:
The answer for the U.S. isn’t pretty. Closing the gap using taxes requires an immediate and permanent 64 percent increase in all federal taxes.
Alternatively, the U.S. needs to cut, immediately and permanently, all federal purchases and transfer payments, including Social Security and Medicare benefits, by 40 percent.
As he is watching the train wreck proceed and the back-room maneuverings try to come up with some sort of compromise that everyone can live with but which won’t make any difference, Foster said: “To say the least, it’s going to be interesting.”

Large Cash Transactions Banned In Mexico

Jon Matonis
October 24, 2012

Outgoing Mexican President Felipe Calderon has signed into law a ban on large cash transactions. The ban will take effect in about 90 days and it is part of a broader effort to control monetary flows within the country.
Under the law, a Specialized Unit in Financial Analysis operating within the Attorney General’s Office will be created to investigate financial operations “that are related to resources of unknown origin.”
For real estate transactions, cash payments of more than a half million pesos ($38,750) will be forbidden and, for automobiles or items like jewelry, art, and lottery tickets, cash payments of more than 200,000 pesos ($15,500) will be forbidden. The law carries a minimum penalty of five years in prison.
In 2010, Mexico instituted strict limits on foreign exchange cash transactions to $1,500 per person per month, which caused several cash dollar exchanges to withdraw from the business and had the effect of penalizing tourists.

Full story here.

VIDEO: It's For Real! The 2012 Third Party Presidential Debate

Global Markets Pummeled: “The Writing Has Been On the Wall for a While”

Mac Slavo
October 24, 2012

When global freight transportation collapsed to record lows in July of this year most analysts wrote it off as an anomaly. In September, when one of the largest retail shipping companies in the world warned of weakening global economic conditions and announced they would slash thousands of jobs, financial markets barely even noticed.
Last week, Google, the largest small business advertising platform on the internet, announced a 21% decline in revenue per share year-over-year, leading to such a rapid decline in their stock price that stock exchange circuit breakers were forced to halt trading. Still, not many financial pundits noticed and investors didn’t seem too worried about the overall picture.
But this morning, investors in the U.S., Europe, and Asia can’t ignore the facts.
In a veritable who’s who of global behemoths, companies with operations across the globe and in many different industries are showing severe strain in a recessionary economic environment that can no longer be papered over.
The weak earnings and dwindling revenues have led to cost-cutting that will add to lost jobs in order to protect profits.
The writing has been on the wall for a while,” said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
“It’s a very tough environment, tough to generate new revenues, so it shouldn’t be too big a surprise we are having people miss on that front.
With earnings for over 30 S&P companies to be released throughout the day, here’s where we stand as of right now:
  • DuPont, one of the world’s largest chemical companies and manufacturers of polymers like nylon and kevlar,  reported a lower-than-expected quarterly profit and announced 1,500 job cuts to offset falling sales around the world.
  • Aerospace and construction firm United Technologies Corp reported a 3.3 percent decline in third-quarter earnings and cut its sales forecast for the year, citing weak demand from airlines and an uncertain economy.
  • 3M Co, which makes Scotch tape, Post Its and thousands of other products for retail and commercial use, cut its profit forecast for the full year as acquisition costs and a strengthening dollar hurt margins.
  • FedEx competitor, United Parcel Service Inc,reported a lower quarterly profit on Tuesday, citing slowing global trade, and said there was “some uncertainty” about the strength of the coming holiday season.
  • RadioShack Corp., swung to a third-quarter a net loss. “Overall, our business performed below expectations,” said Dorvin Lively, interim CEO of the electronics retailer.
Executives at these and other firms have advised that they will be taking extreme cost cutting measures in the foreseeable future, indicating that these savings will be achieved, in part, by further job cuts in the hopes that the moves will boost profits.
They may boost profits temporarily, but the vicious death spiral that is created by such action will lead to further declines in the future. As more Americans lose jobs they are forced to spend less, often becoming dependent on government support to survive. This leads to further declines in revenues and profits, requiring even more jobs cuts. And the downward spiral subsequently continues, wiping out thousands of jobs, hundreds of billions of dollars in wealth, and adding more pressure to social safety nets that are already bursting at the seams.
Given what has transpired over the course of the last several years, there is a strong likelihood that the US Government and Federal Reserve will move to prevent a stock market collapse through a variety of means, including the injection of billions of dollars in cash via the infamous Plunge Protection Team.
Whether they can stop a mass sell-off and prevent panic is of no consequence, really. What matters is that all the facts point to a significant decline in global economic output and consumption, hundreds of thousands of job losses across G-20 nations, and obscene levels of unserviceable debt in the United States and Europe.
The pain is coming, whether we want to believe it or not.
As Mike Rivero humorously suggested at What Really Happened?, it may be time to engage in some alternate investment strategies if you haven’t done so already:

As we noted previously, such a collapse and continued unrecoverable degradation of the system may be so severe that it could have far-reaching effects – and not just for a few months or years:
If this credit bubble pops the depression is going to be so severe that I honestly don’t think our civilization can survive it.
Readers often comment or email us to ask when such a collapse may happen.
Look around folks, it’s happening right here and now.
These are the worst conditions in at least 50 years:
We haven’t seen these highs since the mid ’60s. That survey indicates the poverty level has grown from 15.1% to as high as 15.7% [since 2010], andit’s spreading at record levels to many socio-economic groups from unemployed workers, suburban families, to the poorest poor.
…More discouraged workers are giving up on the job market and unemployment aid is running out. They found that the suburbs are seeing an increase in poverty
Those experts surveyed also predict poverty will remain above the pre-recession level of 12.5% for many more years.
Americans from all walks of life – at least 100 million of them – are living through what can only be described as an economic depression, where jobs are scarce, wages are comparable to those of indentured servants, and no hope appears to be on the horizon.

In Amerika there will never be a real debate. Here are some of the real issues!

Paul Craig Roberts
October 24, 2012

God help them if Obama and Romney ever had to participate in a real debate about a real issue at the Oxford Union. They would be massacred.
The “debates” revealed that not only the candidates but also the entire country is completely tuned out to every real problem and dangerous development. For example, you would never know that US citizens can now be imprisoned and executed without due process. All that is required to terminate the liberty and life of an American citizen by his own government is an unaccountable decision somewhere in the executive branch.
No doubt that Americans, if they think of this at all, believe that it will only happen to terrorists who deserve it. But as no evidence or due process is required, how would we know that it only happens to terrorists? Can we really trust a government that has started wars in 7 countries on the basis of falsehoods? If the US government will lie about Iraqi weapons of mass destruction in order to invade a country, why won’t it lie about who is a terrorist?
America needs a debate about how we can be made more safe by removing the Constitutional protection of due process. If the power of government is not limited by the Constitution, are we ruled by Caesar? The Founding Fathers did not think we could trust a caesar with our safety. What has changed that we can now trust a caesar?
If we are under such a terrorist threat that the Constitution has to be suspended or replaced by unaccountable executive action, how come all the alleged terrorist cases are sting operations organized by the FBI? In eleven years there has not been a single case in which the “terrorist” had the initiative!
In the eleven years since 9/11, acts of domestic terrorism have been miniscule if they even exist. What justifies the enormous and expensive Department of Homeland Security? Why does Homeland Security have military-equipped Special Response Teams with armored vehicles? Who are the targets of these militarized units? If eleven years of US government murder, maiming, and displacement of millions of Muslims hasn’t provoked massive acts of domestic terrorism, why is Homeland Security creating a domestic armed force of its own? Why are there no congressional hearings and no public discussion? How can a government whose budget is deep in the red afford a second military force with no defined and Constitutionally legal purpose?
What is Homeland Security’s motivation in creating a Homeland Youth? Is the new FEMA Corps a disguise for a more sinister purpose, a Hitler Youth as Internet sites suggest? Are the massive ammunition purchases by Homeland Security related to the raising of a nationwide corps of 18- to 24-year-olds? How can so much be going on in front of our eyes with no questions asked?

Why did not Romney ask Obama why he is working to overturn the federal court’s ruling that US citizens cannot be subject to indefinite detention in violation of the US Constitution? Is it because Romney and his neoconservative advisers agree with Obama and his advisers? If so, then why is one tyrant better than another?
Why has the US constructed a network of detainment camps, for which it is hiring “internment specialists”?
Why does the US Army now have a policy for “establishing civilian inmate labor programs and civilian prison camps on Army installations”?
Here is Rachel Maddow’s report on how Obama criticizes the neoconservative Bush/Cheney regime for violations of the US Constitution and US statutory law and then proposes the same thing himself.
How did the presidential debates avoid the fact of Predator Drones flying over us here in the domestic United States of America? What is the purpose of this? Why are the smallest police forces in the most remote of locations being equipped with armored cars? I have seen them. In small lilly-white communities north of Atlanta, Georgia, communities of sub-million dollar MacMansions have militarized police with armored cars and automatic weapons. SWAT teams in full military gear are everywhere. What is it all about? These small semi-rural areas will never see a terrorist or experience a hostage situation. Yet, they are all armed to the teeth. They are so heavily armed that they could be sent into combat against the Third Reich or the Red Army.
Any such questions run afoul of the assumption of America’s moral perfection. No such debate will ever happen. But if “it is the economy, stupid,” why is there no economic debate?
Last month the Federal Reserve announced QE3. If QE1 and QE2 did not work, why does anyone, including the Federal Reserve chairman, think that QE3 will work?
Yet, the utterly irrational financial markets, which haven’t a clue about anything, were overjoyed at QE3. This can only be because what rules the equity market is propaganda, spin, and disinformation, not facts. The vaunted stock market is incapable of making any correct decision. The decisions are made by the fools in the market operating on a short-run basis. The only safe path to take is to run with the lemmings. This strategy insures that a portfolio manager is always in the middle of his peers and, therefore, he doesn’t lose clients.
How wonderful it would have been for Obama and Romney to have confronted in a real debate how QE3, designed to help insolvent “banks too big to fail,” can help households operating, with two earners, on real incomes of 45 years ago, which is where the current real median household income stands.
How does saving a bank, designated as “too big to fail,” help the family whose jobs or main job has been exported to China or India in order to maximize corporate profits, executive performance bonuses and shareholders’ capital gains?
Obviously the working population of the US has been sacrificed to the profits of the mega-rich.
An appropriate debate question is: Why has the livelihood of working Americans been sacrificed to the profits of the mega-rich?
No such question will ever be asked in a “presidential debate.”
In the 21st century, US citizens became nonentities. They are brutalized by the police whose incomes their taxes pay. They, for protesting some injustice or for no cause at all, are beaten, arrested, tasered and even murdered. The police, paid by the public, beat up paralyzed people in wheel chairs, frame those who call them for help against criminals, taser grandmothers and small children, and shoot down in cold blood unarmed citizens who have done nothing except lose control of themselves, either through alcohol, drugs, or rage.
Brainwashed Americans pay large taxes at every level of government for protection against gratuitous violence, but what their taxes support is gratuitous violence against themselves. Every American, except for the small number of mega-rich who control Washington, can be arrested and dispossessed, both liberty and property, on the basis of nothing but an allegation of a member of the executive branch who might want the accused’s wife, girlfriend, property, or to settle a score, or to exterminate a rival, or to score against a high school, college, or business rival.
In America today, law serves the powerful, not justice. In effect, there is no law, and there is no justice. Only unaccountable power.
What is the point of a vote when the outcome is the same? Both candidates represent the interests of Israel, not the interests of the US. Both candidates represent the interests of the military/security complex, agribusiness, the offshoring corporations, the suppression of unions and workers, the total demise of civil liberty and the US Constitution, which is in the way of unbridled executive power .
In the US today, the power of money rules. Nothing else is in the equation. Why vote to lend your support to the continuation of your own exploitation? Every time Americans vote it is a vote for their own obliteration.

Dr. Paul Craig Roberts is the father of Reaganomics and the former head of policy at the Department of Treasury. He is a columnist and was previously the editor of the Wall Street Journal. His latest book, “How the Economy Was Lost: The War of the Worlds,” details why America is disintegrating.

VIDEO: Official Recruiting Video For Concentration Camp Guards In USA!!!

VIDEO: Infowars Nightly News 10/23/12. Election Fraud Allert! Tagg Romney Owns Ohio Voting Booths!

Tuesday, October 23, 2012

VIDEO: "Welcome To The Reservation"! Author Russell Means - The American People Are Now Just As Enslaved As The Indians.

BERNANKE: You Can’t Fire Me — I’m Going To Quit In 2014

Oct 23, 2012

U.S. Federal Reserve Chairman Ben Bernanke has told close friends he probably will not stand for a third term at the central bank even if President Barack Obama wins the Nov. 6 election, the New York Times reported.
Republican presidential nominee Mitt Romney has already said he would not re-nominate Bernanke if he wins the presidency. Bernanke’s term as chairman ends in January 2014.
The Fed’s unconventional efforts to spur growth have been criticized by many who argue that they threaten future inflation and abet profligate spending in Washington.
Treasury Secretary Timothy Geithner has already made it clear he wants to leave by the end of the year.

Full article here

The US Economy Will Need A Miracle To Get Back To Normal

Cullen Roche
Pragmatic Capitalism
Oct 22, 2012

If we take a look at the output gap in the USA we can obtain a far better understanding of the hole that the Great Recession put us in.  Here are some of the ugly facts about the US economy:
  • The output gap peaked in 2009 putting us in a $1.1 trillion hole or about 8% of GDP.
  • The current output gap of $1.06T is roughly 6.82% of GDP.
  • The US economy has averaged 4.6% nominal GDP growth since 1990.
  • The US economy has averaged 3.8% nominal GDP growth since 2000.
  • In the last 3 years the US economy has averaged just 3.7% nominal growth.
  • In order to eliminate the output gap entirely the US economy would need to grow at 5% for the next 5 years.
That might not sound as horrible as you might have presumed. All we need to do is grow at the average nominal rate of the last 20 years and we’ll slowly, but surely get back to “normal”.   There’s just one problem.  The average post-war recovery lasts about 60 months or 5 years.  We’re now in year three of the recovery. That means we’re nearing our “due date”.  Either that or we’re dependent on 8 years of straight recovery without a recession.  History doesn’t like the odds of that occurrence.  The above math assumes no hiccups along the way.  And history says we’re likely to see a bump in the road in the coming few years.  Either that or we’d need to experience one of the longest post-war recovery periods ever.  I’d call that a minor miracle given the circumstances and continuing fragility of the US economy…
Full article here

U.S. Government’s Foreign Debt Now $47,495 Per Household

Terence P. Jeffrey
CNS News
Oct 22, 2012

The debt that the U.S. government owes to foreign interests now equals approximately $47,495 for each household in the United States, according to the latest data released by the U.S. Treasury and the Census Bureau.
The portion of the U.S. government’s foreign debt now owed to interests in Mainland China is about $10,090 per household.
At the end of August, the latest period reported by the U.S. Treasury, foreign interests held a total of $5,430,000,000,000 in U.S. government debt. According to the Census Bureau’s latest estimate (which was for June 2012) there were 114,328,000 households in the United States. Therefore, the total U.S. government debt held by foreign interests was about $47,494.93 per household.

Full article here

What If We Adopted A System Where The Banks Did Not Create Our Money?

Michael Snyder
Economic Collapse
Oct 22, 2012

What if there was a financial system that would eliminate the need for the federal government to go into debt, that would eliminate the need for the Federal Reserve, that would end the practice of fractional reserve banking and that would dethrone the big banks?  Would you be in favor of such a system?  A surprising new IMF research paper entitled “The Chicago Plan Revisited” by Jaromir Benes and Michael Kumhof is making waves in economic circles all over the globe.  The paper suggests that the world would be much better off if we adopted a system where the banks did not create our money.  So instead of a system where more money is only created when more debt is created, we would have a system of debt-free money that is created directly by national governments.  There have been others that have suggested such a system before, but to have an IMF research paper actually recommend that such a system be adopted is a very big deal.  At the moment, the world is experiencing the biggest debt crisis in human history, and this proposal is being described as a “radical solution” that could potentially remedy some of our largest financial problems.  Unfortunately, apologists for the current system are already viciously attacking this new IMF paper, and of course the big banks would throw a major fit if such a system was ever to be seriously contemplated.  That is why it is imperative that we educate people about how money really works.  Our current system is in the process of collapsing and we desperately need to transition to a new one.
One of the fundamental problems with our current financial system is that it is based on debt.  Just take a look at the United States.  The way our system works today, the vast majority of all money is “created” either when we borrow money or the government borrows money.  Therefore, the creation of more money creates more debt.  Under such a system, it should not be surprising that the total amount of debt in the United States is more than 30 times largerthan it was just 40 years ago.
We don’t have to do things this way.  There is a better alternative.  National governments can directly issue debt-free currency into circulation.  The following is a brief excerpt from the IMF report
At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by requiring 100% reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher’s claims.
Why should banks be allowed to create money?
That is a very good question.
Why should sovereign governments ever have to borrow money from anyone?
That is another very good question.
Our current system is designed to enrich the bankers and get everyone else into debt.
And is that not exactly what has happened?
Taking the creation of money away from the bankers would have some tremendous advantages.  A recent article by renowned financial journalist Ambrose Evans-Pritchard described some of these benefits…
One could slash private debt by 100pc of GDP, boost growth, stabilize prices, and dethrone bankers all at the same time. It could be done cleanly and painlessly, by legislative command, far more quickly than anybody imagined.
The conjuring trick is to replace our system of private bank-created money — roughly 97pc of the money supply — with state-created money. We return to the historical norm, before Charles II placed control of the money supply in private hands with the English Free Coinage Act of 1666.
Specifically, it means an assault on “fractional reserve banking”. If lenders are forced to put up 100pc reserve backing for deposits, they lose the exorbitant privilege of creating money out of thin air.
The nation regains sovereign control over the money supply. There are no more banks runs, and fewer boom-bust credit cycles.
So why don’t we go to such a system immediately?
Well, the transition to such a system would undoubtedly be a major shock to the global financial system, and most people try to avoid significant short-term pain even if there are tremendous long-term benefits.

More importantly, however, is that the bankers have a tremendous amount of power in our society today, and they would move heaven and earth to keep a debt-free monetary system from ever being implemented.
You see, the influence of the bankers is not just limited to the big banks.  Our largest financial institutions (and the people who own them) also have large ownership stakes in the vast majority of the big Fortune 500 corporations.  In essence, the big banks are at the very pinnacle of “the establishment” in the United States and in almost every other major country in the western world.
And the vast majority of all political campaigns are funded by “the establishment”.  It takes an enormous amount of money to win campaigns these days, and most politicians are extremely hesitant to bite the hands of those that feed them.
So don’t expect any changes to happen overnight.
One proposal that has actually been put forward in Congress is to cancel all of the government debt that the Federal Reserve is currently holding.  Right now, the Fed is holding more than 1.6 trillion dollars of U.S. government debt…

That would seem to make a lot of sense.  That would immediately wipe more than 1.6 trillion dollars from the U.S. national debt without any real harm being done.
But “the establishment” would be horrified if such a thing happened, so I wouldn’t anticipate it happening any time soon.
Hopefully we can get the American people (along with people all over the globe) educated about these things so that we can start to get millions of people pushing for change.
A debt-free monetary system is superior to a debt-based monetary system in so many ways.
For example, if the U.S. government directly spent debt-free money into circulation, it could conceivably never need to borrow a single dollar ever again.  If the government wanted to spend more money than it brought in, it would simply print it up and spend it.
Of course the big danger with that would be inflation.  That is why it would be imperative for there to be a hard cap on what the government could spend.  For example, you could set the cap on spending by the federal government at 20 percent of GDP.  That way we would never end up looking like the Weimar Republic.
And the current federal debt could be paid down a little at a time using newly created debt-free dollars.  This would have to be done slowly to keep inflation under control, but it could be done.
That way we would not hand a 16 trillion dollar debt to our children and our grandchildren.  We created this mess so we should clean it up.
Theoretically you could also do away with the federal income tax if you wanted to.  Personally, I would like to see the federal government be funded to a large degree by tariffs on foreign goods.  That would also have the side benefit of bringing millions of jobs back into the United States.
Our system of income tax collection is just so incredibly inefficient.  It costs us mind boggling amounts of time and money.  Just consider the following stats from one of my previous articles
1 – The U.S. tax code is now 3.8 million words long.  If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.
2 – According to the National Taxpayers Union, U.S. taxpayers spend more than 7.6 billion hours complying with federal tax requirements.  Imagine what our society would look like if all that time was spent on more economically profitable activities.
3 – 75 years ago, the instructions for Form 1040 were two pages long.  Today, they are 189 pages long.
4 – There have been 4,428 changes to the tax code over the last decade.  It is incredibly costly to change tax software, tax manuals and tax instruction booklets for all of those changes.
5 – According to the National Taxpayers Union, the IRS currently has 1,999 different publications, forms, and instruction sheets that you can download from the IRS website.
6 – Our tax system has become so complicated that it is almost impossible to file your taxes correctly.  For example, back in 1998 Money Magazine had 46 different tax professionals complete a tax return for a hypothetical household.  All 46 of them came up with a different result.
7 – In 2009, PC World had five of the most popular tax preparation software websites prepare a tax return for a hypothetical household.  All five of them came up with a different result.
8 – The IRS spends $2.45 for every $100 that it collects in taxes.
For long stretches of our history the United States did not have any income tax, and during those times we thrived.  It is entirely conceivable that we could return to such a system.
At this point, the wealthy have become absolute masters at hiding their wealth from taxation.  According to the IMF, a total of 18 trillion dollars is currently being hidden in offshore banks.  What we are doing right now produces very inequitable results and it is not working.
In many ways, inflation would be a much fairer “tax” than the income tax because inflation taxes each dollar equally.  Nobody would be able to cheat the system.
But if people really love the IRS and the federal income tax, we could keep them under a debt-free money system.  I just happen to think that the IRS and the federal income tax are both really bad ideas that have never served the interests of the American people.
In any event, hopefully you can see that there is a much broader range of solutions to our problems than the two major political parties have been presenting to us.
We do not have to allow the banks to create our money.
The federal government does not have to go into more debt.
We don’t actually need the Federal Reserve.
There are alternatives to the federal income tax and the IRS.
Yes, it is very true that no system would be perfect.  But clearly the path that we are on is only going to lead to disaster.  U.S. government finances are a complete and total nightmare, and this mountain of debt that we have accumulated is going to absolutely destroy us if we allow it to.
So somebody out there should be proposing a fundamental change in direction for our financial system.
Unfortunately, our politicians are just proposing more of the same, and we all know where that is going to lead.