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Cyprus Banking Crisis…Proof that Modern Banks are NOT Depositories

20 Wednesday Mar 2013

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Tyrannical government, Uncategorized

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Bank run, Banknote, Canada, central bank, China, currency, Cypriot, Cyprus, debt, depression, economic collapse, European sovereign debt crisis of 2010–present, European Union, Eurozone, Federal reserve, Federal Reserve Note, Federal Reserve System, Fiat currency, Fiat money, Freedom, gold, Greece, Hard currency, IMF, Italy, Precious metal, print money, SDR, silver, Spain, Stock market, United States

Hello. It’s Frank on March 20th, 2013.

I haven’t been writing at all lately. I’ve been busy preparing my house, home and finances for what’s soon ahead. But I felt compelled to write about this issue today. I’ve been writing about fiat currencies, so called ‘modern banking’ and real money for years. And I’ve been calling for a global currency crisis and collapse for just as long. It’s taken longer than I predicted to come to fruition, but here we are in March of 2013 at the beginning of the end of the global currency system…and the central banks as well as governments around the world know it and are also preparing wildly for it as we speak. They are hording gold even if they are trying to hide that fact.

http://live.wsj.com/video/just-like-1965-these-are-golden-years/7D420101-C848-4A9C-9467-65A06C8F3EDB.html#!7D420101-C848-4A9C-9467-65A06C8F3EDB

China is hording the most gold because they see the global currency collapse train wreck coming straight at the world. If gold is a relic of the past, as they say, why hoard it to hedge against currency printing, quantitative easing, stimulus efforts and the like? Because these measures are exponentially increasing the timeline for currency collapse.

http://www.businessinsider.com/countries-by-gold-reserves-january-2013-2013-1?op=1

The Cyprus banking crisis is just a precursor to the bigger picture globally. This event is a shot across the bow so to speak, from the global banking cartels. In my opinion this is a warning to the investing world that the currency crisis is about to explode and to flee to the safety of real assets before it’s too late; That the dominoes are starting to fall around the world. There have been other signs over the past five to ten years…many of them. But the initial signs have not been enough to start to the bank runs. Primarily because of central bank intervention but also because the public is ignorant to the modern currency system. This Cyprus event is a BIG sign and I believe they are using Cyprus as guinea pig country to see how the world will react to outright theft of depositors accounts. The plunge protection team was ready to go in the markets when they released the news and kept the western markets (the world markets for that matter…they all work together) from imploding while simultaneously holding the price of gold and silver down in the paper SLV (silver) and GLD (gold) markets to avoid panic with investors.

Remember, the cash you ‘deposit’ as they call it, into your ‘account’ is not yours when you deposit it. You have essentially loaned the cash, which is debt in essence, to the bank and they can do with it what they please. And they do. They lend it out to others, invest it in risky markets and even pay themselves ridiculous bonuses and salaries with that cash you ‘deposit’. It’s called fractional reserve banking. I’ve also explained this in detail before. Then if they are close to failure or bankruptcy because of their risky bets with that cash, the public bails them out because they are scared of systemic collapse. Well, at least what’s they make us believe to pay themselves even bigger bonuses and keep their counterfeiting racket going. Is it helping the ‘system’ or the people? you decide. So when the Cypriots say the government and banks are stealing their money, they really aren’t…that’s the law and why they CAN do it. Depositors beware. You have been fooled into using their system of banking and currency.

http://ca.reuters.com/article/topNews/idCABRE92G03I20130320

http://www.foxnews.com/world/2013/03/20/cyprus-works-on-plan-b-to-stave-off-bankruptcy-after-initial-plan-rejected/

We have been bamboozled into believing that cash we acquire from our labour or the sale of goods and services is ‘ours’. It’s never ours. It’s the ‘property’ of the government through the central banks. We only use it for awhile while it’s in our possession. It’s no longer in your possession after you lend it to the bank. If you look up the meaning for ‘property’ you’ll understand. The wording they use means everything. Wording is the law and they use words to fool the public in banking and currency law everyday. Read between the lines and you’ll be shocked. Read the contract you signed when you opened your bank account if you can understand it!! Question more, read and learn about the modern currency system and you’ll be shocked if you haven’t already. The entire system is a fraud and theft and manipulation. Check out this current article about Flaherty making the banks keep their rates higher than needed to manipulate the markets:

http://www.cbc.ca/news/canada/toronto/story/2013/03/19/business-manulife-mortgage.html

These are draconian measures. This is not democracy. These are not free markets like they try say to the public. This is just a small taste of the blatant manipulation of free markets. Interest rate manipulation is worst form of price fixing. They say it’s to ‘stabilize the system’. Have you seen the system stabilize in the last five years? Not a chance. What happened is even more theft of savers into the government coffers and the pockets of the big banks and big corporations. Outright theft. Just like what is happening in Cyprus and just like what will happen in the falling dominoes of Greece, Spain, Italy, Portugal and on down the line until the western banks and economies also fall…including the US and Canada; Not before they steal as much more of your wealth as possible before it happens. It’s just math…look at the fiat currency creation ‘debt’ clocks. The system can only survive with an exponential curve of even more and more currency creation. And who pays for it? You do as a ‘taxpayer’. Then they go f=after your banks accounts if it’s not enough for them, like in Cyprus. Believe it or not!!

http://www.debtclock.ca/

http://www.usdebtclock.org/

Modern banks are NOT depositories. If you read the contract you sign when you open a bank ‘account’ you’d understand. Who reads contracts today? Virtually nobody. They just sign on the dotted line and click the ‘accept’ button on the computer screen. That’s why they continue to make legal contracts virtually impossible to understand by the layman. They want it that way so that they can take advantage of you. It’s been going on for decades in this modern currency system. They will continue to confiscate your wealth so long as we allow them to. It’s slavery without the chains.

Depositors beware!! Your wealth is not safe if you chose to chose to ‘deposit’ cash into a bank account. It’s their currency, not yours. So exchange that currency for real assets or real money instead of putting it into a bank. They call it ‘savings’ but it’s not. It’s the lending of debt to the bank for their profits under the legal tender and fractional reserve banking laws. Savings are the collection of real assets and real money. Real assets are real tangible things you need in your life. Real money is physical gold and silver as it has been for over three thousand years. Don’t be fooled and bamboozled by their words and this fraudulent currency system we are forced to use by government decree.

Get real and stay real. Fiction is fiction. I surely don’t want my savings in a fictitious form of money or in a system that steals your wealth daily. Not only through the banks but through inflation as well. Do you?

Regards, Frank

 

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Gamed by Bread and Circuses without firing a shot…

24 Thursday Jan 2013

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Uncategorized

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Admiralty and Maritime Law, Banknote, Canada, central bank, Common law, currency, debt, depression, economic collapse, Federal Reserve System, Fiat money, Freedom, gold, Hard currency, IMF, money, Oil, Precious metal, print money, SDR, Second Amendment to the United States Constitution, silver, Stock market, United States, USA PATRIOT Act

Modern 'Bread and Circus' distractions

Modern ‘Bread and Circus’ distractions

Hello. It’s Frank on Thursday, Jan 24th, 2013.

Here is a great article by Jim Karger of the Dollar Vigilante in regards to the shell of the once great nation the US of A. This model is being perpetrated worldwide in one way or another…yes here in Canada as well. Here it is:

Don’t Worry About Your Guns: There Is Nothing Left To Defend

By Jim Karger
The Dollar Vigilante

“And, to you tough-talking Neo-Cons with your AR-15 rifles and a few thousand rounds of ammo, here is reality: they will take your guns, and no, all your Second Amendment bluster aside, you are not going to do anything about it. You are not going to take on a platoon of Marines with state of the art automatic weapons and the best body armor you cannot buy protected by armed personnel carriers and attack helicopters unless you choose to die that day – for nothing.

You will either be in the country or out, and if you are in, you will stay in and you will comply.

That is your choice . . . for the moment.”

I wrote that last year for The Dollar Vigilante in an article entitled “When They Come For Your Guns You Will Turn Them Over“, and it has been republished dozens of times, often as not to vilify the very proposition and its author.

And, even after all the recent saber-rattling in response to Obama’s threat to ban certain semi-automatic rifles, I still believe every word of that article. Most Americans will give up their guns when they are told do so. Not necessarily because they are afraid to die, although most are, but because they are so used to giving up what the government mandates be turned over. Guns may just be the next takeaway in a long list of takings by the State.

Others will come to the conclusion that guns no longer serve a purpose vis-à-vis protection from government tyranny because they have already given up all the rights that matter. From free speech to freedom of the press, all that which was once held sacred has been fully abridged. Even Bill Maher, a liberal’s liberal, gets that irony.

From a government that once complied with the requirements of due process down to dutifully reading one’s Miranda rights, we now suffer under a Leviathan that openly claims (and exercises) the right to arrest, indefinitely detain, sequester, jail, and even kill its own citizens without charges, an attorney, or a trial.

From cops who used to fear violating a citizen’s rights, we have morphed law enforcement into a vast, thuggish, militarized Gestapo-like police network that share only one commonality: they don’t care about the law. They care about what they want. And, if you get in the way or don’t do exactly as you are told, or in some cases don’t intuit what it is they want you to do, you can end up face down on the pavement.

From a simple rap sheet on felons that might be available in the past, the State and all of its appendages can and do have access to your most personal information that can be used to construct vast dossiers that are widely shared through new institutions like Joint Terrorism Task Forces, fusion centers, and public-private partnerships. (That information, by the way, includes the fact that you are reading this blog online. They know. They will remember. Forever.)

Free speech that was once revered is now also in the ashcan of history. The Patriot Act, as only one example, makes it a crime for a US citizen to engage in peaceful, lawful activity on behalf of any group designated as a “terrorist organization.” And who gets to define “terrorist organization”? The Secretary of State who reports directly to the President. Even organizations like PETA (People for the Ethical Treatment of Animals) has been characterized a “terrorist threat” by government. And, of course, anarchists who by definition do not believe in aggression against others, including aggression by the State, are set aside for special condemnation as “terrorists” by the U.S. government:

“The FBI has described anarchist extremists as typically being “event driven,” meaning they show up at political conventions, economic and financial summits, environmental meetings, and the like. They usually target symbols of Western civilization that they perceive to be the root causes of all societal ills—i.e., financial corporations, government institutions, multinational companies, and law enforcement agencies. They damage and vandalize property, riot, set fires, and perpetrate small-scale bombings. Law enforcement is also concerned about anarchist extremists who may be willing to use improvised explosives devices or improvised incendiary devices.” (Source: Congressional Research Service)

Freedom of the press has likewise been shit-canned, and now subject to the whims of government. Of course, government need not take much action against the press, not anymore, since most mainstream press organizations are merely mouthpieces of government. But in the rare event a reporter or a publication wants to expose the incestuous relationship of government and big business, to reveal the State for what it is, they are shut down under threat of law. Good example: agricultural gag laws that provide prison for reporters that reveal animal abuse in industrial agriculture are an in-your-face violation of the First Amendment, but few care anymore, even the courts.

So, what’s the point? Just this: the Second Amendment which prohibits the federal government from abridging the freedom to possess firearms, a right ostensibly provided by the Founders in order to prevent government from stripping away other freedoms guaranteed by the Constitution, is arguably unnecessary now, to-wit, those rights which our guns were supposed to protect have already been stripped away. Indeed, other than the right to shop and go out to eat (neither specifically mentioned in the Constitution), there are few rights that most Americans seem to care about anymore. Instead, they have been gamed by bread and circuses without firing a shot.

I would opine that under these circumstances government would care little whether Americans are armed or not. However, the Feds must suspect civil unrest is coming when the FRN-USD collapses, and hungry people with guns probably isn’t what they have in mind as an endgame, which brings us full circle back to government, per Congressional directive or Executive edict, one day going door to door asking not-so-kindly for your weapons which will leave you asking what liberties you have left worth dying for.

Best Regards, Frank

Related articles
  • Don’t Worry About Your Guns: There Is Nothing Left To Defend (dollarvigilante.com)
  • You’ll Hand Over Your Guns Without a Peep (lewrockwell.com)
  • Rome v. America: when nations die (conservativenewsandviews.com)
  • Their freedom is your freedom – and it’s at risk (multiplyjustice.net)

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Canada…one stock market crash away from insolvency

18 Friday Jan 2013

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Uncategorized

≈ 3 Comments

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Bank of England, Banknote, Ben Bernanke, Canada, central bank, China, currency, debt, depression, economic collapse, EFSF, Federal Reserve System, Fiat money, Freedom, gold, Gold reserve, Hard currency, IMF, mark carney, money, Precious metal, print money, SDR, silver, Stock market, United States

Canada's poor gold holdings

Canada‘s poor gold holdings

Let’s dive right into the meat and potatoes of this issue. First take a look at world gold reserves as of 2010:

http://en.wikipedia.org/wiki/Gold_reserve

Now take a look at world gold reserves as of 2013:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83518215

Canada went from 81st to 84th place in terms of central bank gold holdings. We’re actually getting worse by the year in a time when we should be increasing our gold holdings in such a volatile fiat currency environment. Harper could fit all of the gold holdings Canada has in its reserves into a pick up truck and drive off. And good old Mark Carney, Bank of Canada governor, is now becoming the head of the Bank of England. What does that tell you? The ‘elite debt based paper money changer counterfeiters’ are hanging on for dear life. What they fail to realize is that no matter how many changes and fraudulent laws and regulations they introduce, the math doesn’t lie. Debt based fiat currency systems always collapse…always. You can’t buck the trend of history.

http://elevationsgroupreviews.com/collapse-of-modern-financial-system/the-inevitability-of-fiat-currency-collapse/

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/13_Felix_Zulauf_-_Gold,_Systemic_Collapse_%26_The_End_Of_Fiat_Money.html

What is certain is that gold is coming back as a monetary standard at least partially backing the new coming currency or currencies. The world is pushing for it as faith in fiat currency is once again waning. China has been accumulating gold by the multiples of tons over the past few years and is exponentially increasing it’s gold holdings every month and year. They understand what will inevitably happen to the US dollar in an inflationary environment. See the chart below. China is now 6th in the world and working their way to the top:

2013 top gold holdings

2013 top gold holdings

As a Canadian, I can tell you that I hear people literally bragging about how Canada has been a world leader in controlling debt and bank failures during the economic crisis. The truth is, the Canadian public is just much better at putting their heads in the sand and not noticing what their government and central bank is up to. We love our super phones, reality TV, Facebook and of course shopping with the  credit card. A great myth is that Canadian banks did not take bailouts in 2008. That is false. They did take bailouts.

http://mercuryreliance.wordpress.com/2010/12/29/canadas-unprecedented-bank-bailouts/

http://www.huffingtonpost.ca/2012/04/30/canada-bank-bailout_n_1466219.html

As a matter of fact, Canada is in dire economic shape if you chose to look closely. On the exterior, it may seem that all is well. But if you look at the macro picture and the near future of the global economy, Canada is one stock market crash from insolvency. Think about this. What real assets does Canada possess that could hedge us from a fiat currency crisis…one that I and many others believe is going to occur in short order..possibly beginning this year and becoming a global crisis within five years. Canada is saddled with over 600 billion in Federal debt not including provincial, municipal and personal debt. With a population of only about 30 million, add it all up and we are in big trouble here. With nearly no real hard assets to fall back on aside from our untapped natural resources, when this fiat currency system unravels, you’ll see the Canadian headlines change rather dramatically…overnight.

Now, Canada is a vast nation of resources and will be able to pull itself out by plundering and harvesting all of it’s oil, forests, minerals, water etc at an exponential rate, but this will take many, many years and have a major negative impact on the environment. What Canada needs to do right away is import more gold and hold onto it through this global economic crisis…hopefully coming out of it with something to show for it. Otherwise we will be owned by those who do have the gold and can buy us out for pennies on the dollar. Can you think of a country setting themselves up to buy land and resources in a vast country like ours? Does China ring a bell? They have little land left for their over 1.3 billion people…where do think they are looking to expand their horizons? Yes, Canada.

http://www.thestar.com/business/article/1229028–china-buys-into-canada

http://joyce-international.com/china-real-estate-bubble-investors-looking-to-canada

Now back to the main point. Physical Gold reserves in Canada are very low. We have plenty of the gold in the ground, but it takes years to extract and see the economic benefits of it. Canada is solely relying on the false fiat economic recovery world wide as it’s back stop. That is very, very dangerous people. If we see another stock market crash, which I believe we will see before 2013 is out, Canada could see itself broke and desperate. We are talking about a possible takeover by foreign interests for pennies on the dollar if there is a currency crisis resulting in global fiat economic collapse. Oh.. how history repeats itself.

Physical gold holdings, and other precious metals such as silver, platinum, copper and nickel, will be the only stores of value left; the only real money on this planet recognized by the human population. This has been the case in history for over three thousand years. What makes anyone believe that the last 30 years is any different than the past 3000 years. If you believe that, you are living in a false paradigm that will surely leave you penniless and homeless when this system collapses. Either that, or you will see the value of your savings reduced to pennies on the dollar. Hard assets are the only protection you have against fiat currency collapse and revaluation. I hope that you have some to fall back on when the inevitable news flashes across your TV screen. I know beyond the shadow of a doubt that the Canadian government won’t have the resources to help you.

You are the only one that can protect yourself and your family for what’s ahead. Bring the gold…and silver!

Regards, Frank

Related articles
  • The US Fiscal Cliff…A Canadian Perspective (mercuryreliance.wordpress.com)
  • Canada Moves Toward Cashless Currency With New Plastic Fiat (aworldchaos.wordpress.com)
  • John Rubino: How The Next Collapse Will Play Out; Protect With Gold and Silver (etfdailynews.com)
  • Germany Takes Back Gold: US Dollar Collapsing (wemustknow.wordpress.com)
  • In global reserve currency transition gold may move to center stage-OMFIF (missionmining.wordpress.com)
  • German Gold Grab Could Call into Question the “Full Faith and Credit” of the U.S. (missionmining.wordpress.com)
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  • Trading Education: Stock Market Crash of 1929 and the Great Depression (optionsanimal.com)
  • The Controlled Descent & Devaluation of Fiat Currencies in 2013 ▸ RESET (financialsurvivalnetwork.com)
  • Brazil Gold Reserves In Fixed Term Gold Deposits With Bullion Banks (goldcore.com)

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Silver Bullet Silver Shield Series…by: Truth Never Told

14 Monday Jan 2013

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Uncategorized

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Admiralty and Maritime Law, Banknote, Ben Bernanke, Canada, central bank, Common law, currency, debt, depression, economic collapse, European sovereign debt crisis of 2010–present, Eurozone, Federal Reserve System, Fiat currency, Fiat money, Freedom, gold, Hard currency, IMF, Precious metal, print money, SDR, silver, Stock market, United States

 

Enjoy this series and Take Action!

Best Regards, Frank

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Should we EVER trust government?

06 Sunday Jan 2013

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Uncategorized

≈ 6 Comments

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Banknote, Ben Bernanke, Berlin Wall, black gold, Brave New World, Canada, central bank, China, Common law, currency, debt, depression, economic collapse, Edward Bernays, EFSF, European sovereign debt crisis of 2010–present, European Union, Eurozone, Federal reserve, Federal Reserve Note, Federal Reserve System, fiat, Fiat currency, Fiat money, Freedom, gold, Greece, Hard currency, IMF, Iran, Law, Lehman Brothers, Libya, Middle East, Oil, Precious metal, print money, Roger Waters, SDR, silver, Stock market, Wall Street, Working Group on Financial Markets, World War II, WWIII

Mother, should I trust the government?

By Jim Quinn

Written by Jim Quinn of The Burning Platform blog (http://www.theburningplatform.com/?p=45633)

Mother, do you think they’ll drop the bomb?
Mother, do you think they’ll like this song?
Mother, do you think they’ll try to break my balls?
Ooh ah,
Mother, should I build the wall?

Mother, should I run for president?
Mother, should I trust the government?
Mother, will they put me in the firing line?
Ooh ah,
Is it just a waste of time?

Pink Floyd – Mother

The lyrics to Mother had both a literal and figurative meaning for Roger Waters. He was literally describing his overprotective single mother (his father was killed in World War II) building walls to protect him from the outside world. The figurative meaning is Big Mother sending its boys off to war and using fear to control and manipulate the masses. At the time he wrote this song in 1979, the Soviet Union was thought to be at its peak of power and the Berlin Wall represented a boundary between good and evil. Nuclear war was still a looming fear. Waters has always had a dim view of totalitarian states and institutions (English schools). Having seen his Wall Tour performance this past summer at Citizens Bank Park with a diverse crowd of 40,000, ranging in age from senior citizens to teenagers, it seems this song has gained new meaning. He sang a duet with himself from 1980 projected on the Wall and when he sang the lyric, “Mother, should I trust the government?” the entire stadium responded in unison – NO!!! This revealed a truth that is not permitted to be discussed by the corporate mainstream media acting as a mouthpiece for the ruling class. A growing legion of citizens in this country does not trust the government. This is very perceptive on their part.

In part one of this two part series – Hey You – I examined how an invisible government of wealthy, power hungry men have utilized the propaganda techniques of Edward Bernays and lured the American people into a narcissistic, techno-gadget, debt based servitude. Over the last one hundred years they have created a totalitarian state built upon egotism, material goods, and fulfilling our desires through Wall Street peddled debt and mass consumerism. It has been an incredibly effective form of control that has convinced the masses to love their servitude. The ruling oligarchs correctly chose the painless, amusement saturated, soft totalitarianism of Huxley’s Brave New World over the fearful, pain inflicting, surveillance state, house of horrors detailed in Orwell’s 1984.

“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.” – Aldous Huxley – Brave New World

The nefarious establishment of the Federal Reserve in 1913, launch of welfare programs in the 1930s, expansion of the entitlement state in the 1960s, creation of the credit card in 1970, mass media marketing propaganda, and the formation of an empire of debt laid the foundation for a society based on triviality, egotism, irrelevance and mass delusion. The conscious manipulation of the habits and opinions of the masses by an invisible government of powerful men using media propaganda and easy to access consumer credit has reached its mathematical limit. The oligarchs built a society dependent upon exponential growth. This unsustainable prototype began to show signs of strain in the 1990s. The powerful interests have been growing ever more desperate and blatantly obvious in their looting and pillaging of the debt bloated carcass of a country. They used their control of the political system to repeal Glass-Steagall, allowing the Wall Street banking cabal to become Too Big to Control. The oligarch puppets at the Wall Street controlled Federal Reserve did the bidding of their masters by reducing interest rates and expanding the money supply to create two epic bubbles.

The Dot.com bubble was created by Wall Street utilizing hype and misinformation to fleece millions into believing we had entered a new paradigm. The only people who got rich were the Wall Street hucksters, shysters and shills.

 

When the Dot.com bubble burst, Alan Greenscam came to the rescue, at the urging of Nobel prize winner Paul Krugman, by creating the largest bankster made bubble in the history of the world. The combination of excessively low mortgage rates, complete lack of regulatory oversight by the Federal Reserve, control fraud committed by the Wall Street banks, and buying frenzy stirred up by the corporate MSM and NAR, led to the biggest financial collapse since 1929.

 

The white collared psychopathic criminals on Wall Street reaped billions in profits, paid themselves millions in bonuses, and cost taxpayers trillions when it all blew up in 2008. The parasitical ruling elite have added $6 trillion to our national debt and their central bankster has added another $2 trillion to our ultimate tab, while providing free money to their Wall Street bank owners. They realize their efforts to restart the exponential growth engine have failed. They gutted our productive manufacturing based economic system by shipping the blue collar jobs overseas to Chinese slave labor facilities, replaced workers with machines, stimulated consumption with unlimited distribution of high interest debt, and allowed conglomerates to drive small business owners out of business with their cheap foreign sourced goods, all in the name of capitalism. The plan worked so well that real wages haven’t risen in 40 years, inflation has destroyed the purchasing power of the middle class, 47.7 million people are dependent on food stamps to survive, and the masses can’t even afford the cheap slave labor produced trinkets anymore. There is too little cash, too few jobs, too much debt, too many takers, too few makers, too many banksters, too much delusion, and too few resources to sustain the unsustainable. We have entered the end stages of a ravenous locust swarm. The fields have been stripped bare.

 

When the men in smoke filled rooms realized their soft totalitarianism was losing its grip on the oblivious, submissive, egoistical, distracted masses, they began phase two of their effort to retain their wealth, power and control. They began to institute Orwellian measures to strike fear into the populace. Their illusion of control is dissipating and they are resorting to force in order to maintain hegemony. It began with the immediate passage of the Orwellian Patriot Act one month after 9/11. Did the corporate media question how a 363 page all-encompassing expansion of police state power was written in a few weeks after 9/11 and passed by October 26? They did not. The bill was pre-written and ready for instant implementation when the time was right. The Orwellian version of America was launched.

“If the ideology had been a lie, then they are not heroes and gods on earth, but monsters and criminals, and their life has been self-serving and meaningless, without significance and honor. And that is the credibility trap. It is the impulse for the leaders to keep doubling down in the hope of a win, until exhaustion and collapse.” – Jesse      

 

Obedience to Authority

“Ordinary people, simply doing their jobs and without any particular hostility on their part, can become agents in a terrible destructive process. Moreover, even when the destructive effects of their work become patently clear and they are asked to carry out actions incompatible with fundamental standards of morality, relatively few people have the resources needed to resist authority.”  - Stanley Milgram – Obedience to Authority

Just as Edward Bernays knew the unruly masses could be manipulated by propaganda and molded to believe whatever the small group of intellectually superior men wanted them to believe, conditioning using fear and authoritarian methods have also been perfected by the ruling class. Doctor Stanley Milgram unwittingly provided the oligarchs with confirmation the average citizen could be ordered to do anything by invoking expertise and authority over their subjects. Milgram started his experiments in 1961, shortly after the trial of the World War II criminal Adolph Eichmann had begun. Eichmann’s defense that he was simply following orders when he exterminated millions of gypsies roused Milgram’s interest. How could millions of Germans participate and condone such genocide? Milgram’s testing suggested that it could have been that the millions of accomplices were merely following orders, despite violating their deepest moral beliefs.

Writer Kendra Cherry describes the experiment:

The participants in the Milgram experiment were 40 men recruited using newspaper ads. Milgram developed an intimidating shock generator, with shock levels starting at 30 volts and increasing in 15-volt increments all the way up to 450 volts. The many switches were labeled with terms including “slight shock,” “moderate shock” and “danger: severe shock.” The final two switches were labeled simply with an ominous “XXX.”

Each participant took the role of a “teacher” who would then deliver a shock to the “student” every time an incorrect answer was produced. While the participant believed that he was delivering real shocks to the student, the student was actually a confederate in the experiment who was simply pretending to be shocked.

As the experiment progressed, the participant would hear the learner plead to be released or even complain about a heart condition. Once the 300-volt level had been reached, the learner banged on the wall and demanded to be released. Beyond this point, the learner became completely silent and refused to answer any more questions. The experimenter then instructed the participant to treat this silence as an incorrect response and deliver a further shock.

Most participants asked the experimenter whether they should continue. The experimenter issued a series of commands to prod the participant along:

    • “Please continue.”
    • “The experiment requires that you continue.”
    • “It is absolutely essential that you continue.”
    • “You have no other choice, you must go on.”

The level of shock that the participant was willing to deliver was used as the measure of obedience. How far do you think that most participants were willing to go? When Milgram posed this question to a group of Yale University students, it was predicted that no more than 3 out of 100 participants would deliver the maximum shock. In reality, 65% of the participants in Milgram’s study delivered the maximum shocks.

Of the 40 participants in the study, 26 delivered the maximum shocks while 14 stopped before reaching the highest levels. It is important to note that many of the subjects became extremely agitated, distraught and angry at the experimenter. Yet they continued to follow orders all the way to the end. Why did so many of the participants in this experiment perform a seemingly sadistic act on the instruction of an authority figure? According to Milgram, there are a number of situational factors that can explain such high levels of obedience:

    • The physical presence of an authority figure dramatically increased compliance.
    • The fact that the study was sponsored by Yale (a trusted and authoritative academic institution) led many participants to believe that the experiment must be safe.
    • The selection of teacher and learner status seemed random.
    • Participants assumed that the experimenter was a competent expert.
    • The shocks were said to be painful, not dangerous.

The American people have been participants in their very own Milgram experiment being conducted by their government since 9/11. Since the passage of the Patriot Act, the government continues to demand that its citizens increase the voltage in the name of security. Since 2001, the Orwellian measures have included:

  • Warrantless domestic surveillance.
  • The ability to search telephone calls, emails, financial matters especially involving foreign individuals, and medical records for people who are “suspected” of endangering the country.
  • Color coded risk levels designed to keep citizens fearful of non-existent terrorists.
  • Pre-emptive invasion of foreign countries.
  • Committing U.S. forces to war without a declaration of war by Congress as mandated in the U.S. Constitution.
  • Assassination of people on presidential kill lists.
  • Extermination of “suspected” enemies by predator drones.
  • Camera systems monitoring the movements of Americans in cites and streets across the United States.
  • Torture of detainees in camps outside of the United States.
  • The authority to indefinitely detain US citizens without trial.
  • Executive orders giving the President the ability to unilaterally disregard the U.S. Constitution and take control of private industries.
  • Use of drones to monitor the activities of US citizens.
  • Allowing the very banksters that destroyed the worldwide economic system to blackmail the American taxpayers into handing them $23.7 trillion.
  • Not prosecuting one Wall Street criminal after the largest Ponzi control fraud in the history of the world.
  • Cameras and listening devices on public transit and other public locations.
  • Military exercises conducted in U.S. cities in order to condition the masses.
  • Attempts to control and censor the internet through the introduction of the SOPA bill.
  • The use of tragic mass murders by mentally defective young men on psychotropic drugs to disregard the 2nd Amendment and disarm US citizens.
  • TSA thugs molesting little old ladies and young children to desensitize US citizens to gestapo like tactics and treat them like criminals.
  • Government partnering with Facebook, Apple and other corporate entities to monitor, censor, and report the activities of US citizens to the authorities.
  • The use of public schools to teach children what to think rather than how to think. Thought control is vital to an agenda of keeping the masses fearful and pliable.
  • Government agencies (FBI, ATF) creating terrorist plots, luring young dupes into the plots, providing fake explosives, and then announcing with great fanfare they have foiled a terrorist plot.
  • “See something, Say something” government media campaign designed to make US citizens paranoid and fearful.

Just as Milgram pondered how the German people could follow the orders of those in authority to slaughter millions, one must ponder how the American people have allowed those in power to strip us of our Constitutional freedoms and liberties in the name of safety and security. They have conditioned the masses to passively accept their fate by utilizing fear, authoritarian measures, thought control, and propaganda. Human beings never change. They have been driven by emotions throughout history – fear, greed, love and hate. There will always be psychopathic men who seek wealth, power, glory and control. It happened during the decline of the Roman Empire and it is happening today during the decline of the American Empire.

“A shocking crime was committed on the unscrupulous initiative of few individuals, with the blessing of more, and amid the passive acquiescence of all.” – Tacitus

Big Brother is Watching You

“Now I will tell you the answer to my question. It is this. The Party seeks power entirely for its own sake. We are not interested in the good of others; we are interested solely in power, pure power. What pure power means you will understand presently. We are different from the oligarchies of the past in that we know what we are doing. All the others, even those who resembled ourselves, were cowards and hypocrites. The German Nazis and the Russian Communists came very close to us in their methods, but they never had the courage to recognize their own motives. They pretended, perhaps they even believed, that they had seized power unwillingly and for a limited time, and that just around the corner there lay a paradise where human beings would be free and equal. We are not like that. We know what no one ever seizes power with the intention of relinquishing it. Power is not a means; it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship. The object of persecution is persecution. The object of torture is torture. The object of power is power. Now you begin to understand me.” – George Orwell – 1984

What the average person can’t seem to process through their government public school educated non-critical thinking brains is that there are actually a small group of banksters, politicians, corporate executives, media magnets and shadowy billionaires who call the shots in this country. They constitute Bernays’ invisible government, run the show, mold the minds, form the opinions, suggest the ideas, and create the reality for the masses because they believe they are intellectually superior. The left/right and Democrat/Republican discord is a planned diversion for the masses. The country has devolved into a corporate fascist warfare/welfare state. We are clearly moving in the direction of Orwell’s state in which government monitors and controls every aspect of human life to the extent that even having a disloyal thought will be against the law. The longer this is allowed to progress the more likely any effort to resist like Winston Smith will be met with brutal measures.

The parallels to Orwell dystopian nightmare state grow by the day. Those in control use technology to bombard Americans with psychological inducements designed to overwhelm the mind’s capability for autonomous thought. In Orwell’s 1984 the giant telescreen in every citizen’s room blasts a constant stream of propaganda designed to make the failures and shortcomings of the Party appear to be triumphant successes. In Obama’s 2013 the 72 inch Chinese made HDTVs in every McMansion blasts a constant stream of propaganda designed to make the zombie-like occupants buy trinkets and gadgets with a thin piece of plastic and makes the failures in Iraq, Afghanistan, Egypt and Libya appear to be triumphant successes. Our corporate/fascist party uses their control over the media message to indoctrinate and control the public mind through propaganda and repetitive messaging. In Orwell’s world, the Party undermines family structure by inducting children into an organization called the Junior Spies, which brainwashes and encourages them to spy on their parents and report any instance of disloyalty to the Party. In our world children are indoctrinated in government run public schools that fill their brains with government manufactured history, social engineering claptrap and what they should think, rather than how to think. The Orwellian Department of Homeland Security (Thought Police) instructs them to report anyone they think is suspicious with their “See something, Say something” campaign. Children are “encouraged” to re-educate their parents about green energy and global warming. Corporations fund schools to advertise their products within the hallways of learning. The outputs of this corporate/fascist partnership are non-critical thinking, functionally illiterate, willfully ignorant Proles who obey the Party and consume products as instructed.

In Orwell’s 1984 the Party keeps the population in a general state of exhaustion by making them work long grueling hours at government run agencies. This was designed to keep them from thinking or having the energy to resist. About one in six workers work for the government in the United States, with a substantial portion of private jobs dependent upon government largesse. The true distinction in our society can be seen in the income levels over decades of our own Inner Party, Outer Party and Proles.

The government educated masses were purposely not taught about the impact of Federal Reserve created inflation on their lives. Even using the government manipulated CPI, the real household incomes of the masses have barely risen in the last forty five years. Using a true measure of inflation, the real household incomes of the average family have fallen. In addition, prior to the 1980s those household incomes were predominantly provided with one parent working and the other raising the children. Today the vast majority of households require both parents to work in order to just tread water. Child rearing was delegated to the state and parents have been kept in a constant state of exhaustion, like hamsters in a cage on a spinning wheel. Household income was replaced by credit card debt, mortgage debt, auto debt, and student loan debt peddled by our very own Inner Party (Wall Street banksters). The Inner Party members have seen their incomes soar over the last four decades. This was not an accident.

As those at the top accumulate an ever increasing percentage of the national wealth, while consolidating their power through ever more sophisticated use of technology for surveillance, warfare, and financial theft; urban decay and blight spreads across the land. Totalitarian regimes are ferociously effective at augmenting their own power and wretchedly incompetent at providing for their citizens. Just as the London in Orwell’s dystopian world was a decrepit, rundown city in which buildings were crumbling, amenities such as elevators never worked, and basics such as electricity and plumbing were exceedingly undependable, the urban killing fields that are home to tens of millions in the United States are dangerous, disintegrating, hallowed out carcasses of once thriving metropolises. Hunger, poverty, crumbling infrastructure, and violence are the earmarks of society for the Proles. True unemployment exceeds 20%, with youth and minority unemployment exceeding 40%. There are 47.7 million Americans subsisting on food stamps (program administered by JP Morgan), accounting for 20% of all the households in the country.

The incompetency and mismanagement by our totalitarian governing body is evident for all to see, as bridges collapse, water mains burst, gas lines explode, mass transit shuts down and structures deteriorate due to decades of neglect. The priorities of those in power are clearly visible as they spend trillions on weapons used to attack sovereign countries, distribute billions in “aid” to foreign dictators, provide trillions to the criminal banking cabal on Wall Street, and devote billions to technology designed to monitor and control their citizens. Our entire rotting, fetid, bloated, corrupt society has about reached its limits. It is only a matter of time until it implodes like the former Soviet Union.

“Diminishing returns of ever-increasing complexity addressed with ever-more layers of complexity, larded with systematic lying based on mystifying, opaque jargon, sanctioned statistical misreporting, felonious cronyism, and scuttling of the rule of law. In short, the markets have been taken over in effect by a criminal racketeering syndicate. In doing this, so much resilience has been removed from these market structures that they are riddled with rot, like a mansion infested with carpenter ants.” – Jim Kunstler

 

We Have Always Been at War with Eastasia

Hush now baby, baby, don’t you cry.
Mamma’s gonna make all of your nightmares come true,
Mamma’s gonna put all of her fears into you,
Mamma’s gonna keep you right here, under her wing.

  She won’t let you fly, but she might let you sing,
Mamma’s gonna keep baby cozy and warm.
Oooh babe, Oooh babe, Oooh babe,
Of course Mamma’s gonna help build the wall.

Pink Floyd – Mother

The concepts of Doublethink and Newspeak are alive and well in our increasingly Orwellian society. The massive long-term campaign of large-scale psychological manipulation, described in detail by Edward Bernays in 1928, has succeeded in breaking down the capacity for independent thought by the masses. Those in control of the media have molded the minds of millions to believe anything the government tells them, even while possessing information that runs counter to what they are being told. On the eve of the invasion of Iraq, the government and their media propaganda mouthpieces had convinced 69% of the American public that Saddam Hussein was involved in the 9/11 attacks, even though there wasn’t a shred of evidence to support that claim. The storyline of Iraqi soldiers murdering Kuwaiti babies in their incubators during the first Gulf War was another example of propaganda designed to manipulate public opinion. By controlling the media message, those in power control the present and can manipulate the past. The government controls the curriculum in public schools and writes our history to conform to whatever storyline that supports their agenda. With 20% of the adult population in this country functionally illiterate, the formulation of ideas or critical thought is virtually impossible for these people. This is exactly what is desired by the ruling class.

The outrageous example of Doublethink in Orwell’s 1984 occurs during the Hate Week rally.  The Party shifts its diplomatic allegiance, so the nation it has been at war with suddenly becomes its ally (Eurasia), and its former ally becomes its new enemy (Eastasia). When the Party speaker suddenly changes the nation he refers to as an enemy in the middle of his speech, the crowd accepts his words immediately, and is ashamed to find that it has made the wrong signs for the event. The American people have been programmed to accept the same logic from our leaders. Saddam Hussein was our ally when he was fighting our enemy Iran, who had been our ally ever since we had overthrown their democratically elected leader in the 1950s. Then he became our enemy for using weapons of mass destruction, provided to him by the U.S., on his own people and threatening our control over Middle Eastern oil. Osama bin Laden was our ally when he was fighting our mortal enemy, the Soviet Union. Then he became our mortal enemy because we refused to leave Saudi Arabia after the first Gulf War. Gadhafi was our sworn enemy after allegedly blowing up an airliner filled with Americans, until he helped us after 9/11 and became an ally. Then he became an enemy again for implementing a gold backed Dinar in his country for oil sales. Mubarak was an ally for decades as we provided him billions in military hardware so he could brutally maintain control. Then he became an enemy when we decided he was no longer of use. Do you get the picture?

Do you see any parallels between Orwell’s Ministry of Plenty (oversees economic shortages); the Ministry of Peace (wages war); the Ministry of Truth (conducts propaganda and historical revisionism); and the Ministry of Love (the center of the Party’s operations of torture and punishment) and our Department of Agriculture, Department of Defense, Department of Education, and Department of Homeland Security?  

“In our age there is no such thing as ‘keeping out of politics.’ All issues are political issues, and politics itself is a mass of lies, evasions, folly, hatred and schizophrenia. The very concept of objective truth is fading out of the world. Lies will pass into history.” – George Orwell

Should I Trust the Government?

 

So the oligarchs have utilized all the plays in Huxley’s playbook and are half way through Orwell’s playbook, but they are rapidly losing their credibility as a small minority of critical thinking people is using the internet to spread the truth and form phyles with like-minded people with similar values based on liberty and freedom. The political system is broken beyond repair as $2 billion was spent during this last “election” to maintain the status quo. The looting and pillaging of the middle class continues, while the poor are kept controlled, sedated and enslaved by entitlements, debt, drugs and prisons. The financial system is succumbing to the mountains of debt that have been accumulated trying to keep the game going. In the last ten years worldwide total credit market debt, on balance sheets, sovereign obligations, corporate debt, household debt – has grown from $80 trillion to just over $200 trillion. U.S. unfunded liabilities committed to by the political parasites that pass for our representatives surpass $600 trillion. There are $1.6 quadrillion of interconnected derivatives outstanding in the world today, 200 times the size of the worldwide economy. The accumulation of worldwide debt, aging developed country populations, depletion of resources, perpetual war, financial fraud and rampant corruption are going to lead to a collapse of epic proportions. It may not happen in 2013, but it will happen within the next five years. Jesse explains why the status quo will never relinquish their power, illegally acquired wealth and control without a fight:

“A credibility trap is a condition wherein the financial, political and informational functions of a society have been compromised by corruption and fraud, so that the leadership cannot effectively reform, or even honestly address, the problems of that system without impairing and implicating, at least incidentally, a broad swath of the power structure, including them. The status quo tolerates the corruption and the fraud because they have profited at least indirectly from it, and would like to continue to do so. Even the impulse to reform within the power structure is susceptible to various forms of soft blackmail and coercion by the system that maintains and rewards.

And so a failed policy and its support system become self-sustaining, long after it is seen by objective observers to have failed. In its failure it is counterproductive, and an impediment to recovery in the real economy. Admitting failure is not an option for the thought leaders who receive their power from that system.  The continuity of the structural hierarchy must therefore be maintained at all costs, even to the point of becoming a painfully obvious hypocrisy.”

The people of this country must regain a sense of responsibility for their lives and the lives of future generations. Enough people need to perceive they are being manipulated, controlled and used by the thought leaders and awaken from their narcissistic materialistic debt financed lives. Our culture has failed. The animosity and anger in the country is beginning to bubble over. The masses are beginning to realize they have been screwed. They haven’t figured out who to blame because they are still trapped in the Republican/Democrat false dogma. There is one Party putting on a show, as displayed this week with the fiscal cliff farce, as the government controlled media proclaimed victory because the status quo was maintained, nothing was cut, and $4 trillion was added to the National Debt. More people need to question and challenge the authorities. We must cast aside our willful ignorance of facts and accept the consequences of decades of bad decisions and delusions of grandeur. More government is not the answer. We must break free of the conditioning and mind control used to make us love our servitude and trust those in power.

Kyle Bass recently revealed a fact about our government leaders:

“They’re not going to tell you that a collapse is coming. You’re going to have to see it for yourself. The government’s never going to tell you that it’s going to happen. These guys are never going to tell you the truth, because they can’t tell you the truth. Their job is to promote confidence, not to tell you the truth.”

We need more people to respond to Roger Waters’ question, “Mother, should I trust the government?” with this answer before we can begin to tear down the wall that seemed too high.

“During times of universal deceit, telling the truth becomes a revolutionary act.” – George Orwell

 

 

Related articles
  • Mother, Should I Trust the Government? (theburningplatform.com)

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The US Fiscal Cliff…A Canadian Perspective

28 Friday Dec 2012

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Uncategorized

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Banknote, Ben Bernanke, Canada, central bank, currency, debt, depression, economic collapse, European Union, Federal Reserve Note, Fiat currency, Fiat money, Freedom, gold, Hard currency, IMF, money, Precious metal, print money, Reserve currency, SDR, silver, Stock market, United States

Canada operates on the same fiat currency system that the rest of the world does based on the US Federal Reserve Note, the world reserve currency the ‘US dollar’. Although on the right track, the fellow speaking in this Canadian parliamentary video probably does not understand that all fiat currency systems, by mathematical and exponential design and certainty, always grow to the point of collapse and failure. If he only he realized the point behind free money and a debt based currency system. If only he understood value based currency systems and blended this speech with the necessity for change from our current debt based fiat currency system to value based money system. Combine what he is saying here in his speech with that, he would right on the ball for a complete restructuring of Canada’s economy before the current global fiat currency system collapses all together, taking Canada down with it. It’s terrible to know that as strong as Canada seems right now (in this fiat currency system), compared to many other countries when it comes to our spending habits per-capita, we will go down as hard as the rest of the world that uses the current fiat currency system. That would be every nation on this planet.

This video is a great start. Maybe he is testing the waters and this speech is a precursor to more discussion on fiat currency systems. But lets now spread the word about the dire need to change the fiat currency system to a value based system. It will happen either way,  but the sooner we all understand what’s ahead for our current fiat system, the sooner we can change it with much less detriment to our society. Going over the fiat currency cliff is not the right way to learn that the result is chaos, social unrest, food shortages, gas shortages, lost jobs, lost homes and even martial law in our streets as some people will go wild and crazy looting and taking from others just to survive. The US ‘fiscal cliff’ is just another stumbling block. As more and more of the free money diseases claim more and more fiat currency fiscal lives, we are but one step closer to global currency collapse. A grand experiment that has never been attempted in all of human history.

 

Best Regards, Frank

 

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  • Canada to Follow U.S. Into ‘Fiscal Cliff’ Recession (safehaven.com)
  • The Fiscal Cliff Is A Diversion: The Derivatives Tsunami and the Dollar Bubble (thedailybell.com)
  • The “Fiscal Cliff” and Gold (adask.wordpress.com)
  • James Turk: Above Ground Gold Stock Likely Smaller Than Commonly Thought ! (socioecohistory.wordpress.com)
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  • Canada Dollar Hits One-Month Low, Stung by “Fiscal Cliff” Fear (sfluxe.com)
  • Stocks fall on ‘fiscal cliff’ concerns (sfgate.com)

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Where is the Love? ‘Black Eyed Peas’

15 Saturday Dec 2012

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Uncategorized

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Banknote, BlackEyedPeas, Canada, central bank, Christmas, currency, debt, depression, economic collapse, Federal reserve, Fergie, Fiat currency, Freedom, gold, Hard currency, Holiday, Love, Merry Christmas, money, Oil, Precious metal, print money, silver, United States, Where Is the Love?

Listen to the lyrics and ask yourself, “Where is the Love?”

 

Then watch this video and ask yourself, “What is happening to our world and can we make a difference?” Yes we can…

 

Have a Very Merry Christmas.

Best Regards, Frank

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The Danger of the Exponential Function…Must Watch Video for Everyone

04 Sunday Nov 2012

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Uncategorized

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Banknote, Canada, central bank, currency, debt, depression, economic collapse, economy, energy, environment, Exponential function, Federal Reserve System, Fiat currency, Fiat money, Fresh water, Function (mathematics), Global warming, gold, Hard currency, IMF, money, Oil, Precious metal, print money, SDR, silver, United States

The exponential function is the most important mathematical function we all need to understand…and quickly

The exponential function or otherwise known as the exponential curve is a mathematical certainty that is facing us globally on many fronts, especially in our global credit markets. The global economy is on fragile ground and at the top of this exponential curve and pyramid scheme. Enjoy the video and get prepared!

http://moneymappress.com/pro/Pyramid0712MMR2Y.php?code=EPYRNB17&n=PYRAMIDMMR12EADMMP&o=845092&s=850508&u=55339945&l=505028&g=96&r=Milo

http://en.wikipedia.org/wiki/Exponential_function  (Definition of the Exponential Function)

Regards, Frank

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40 Billion per month paid by taxpayers to bail out banks..for..indefinitely

31 Wednesday Oct 2012

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Uncategorized

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Banknote, Ben Bernanke, black gold, Canada, central bank, currency, debt, depression, economic collapse, Eurozone, Federal reserve, Federal Reserve System, Fiat currency, Fiat money, Freedom, gold, Hard currency, IMF, John Williams, Middle East, money, Oil, Precious metal, print money, Ron Paul, Saddam Hussein, SDR, silver, Stock market, World Trade Center, WWIII

Economic losing battle

 

 

 

 

 

 

 

 

 

AGAIN!!

People all over the world should be outraged that the private US Federal  Reserve bank will be funneling 40 Billion Dollars per month each and every month for an indefinite period into the banks (globally in many cases), to purchase more toxic mortgage backed securities (MBS). These securities were the cause of the 2008 market crash in whole or in part. In short, they were mortgages given to anyone with a pulse, bundled into groups and sold to investors as ‘AAA’ investments.

http://www.bloomberg.com/news/2012-09-13/fed-plans-to-buy-40-billion-in-mortgage-securities-each-month.html

How is the Fed planning do buy all these MBS? They print money out of thin air (or  its electronic equivalent on a computer screen), and they use that newly created money to buy these toxic MBS from the major banks so they can get them off their balance sheets and make their books look better..or in reality stop them from going bankrupt. Once again the Fed bails out its crony buddies on the backs of the real working people of the US of A.

Some may say (usually stock market brokers or banks), that this is a good thing or the banks could go bankrupt causing real economic calamity. Partly true, but who has to repay this newly created money in the future. The people of the United States, the taxpayers of today, tomorrow, and the next decades to come. This is a fear tactic they use to give money to the big banks for their bad bets and take it away from the working people…which is deceiving and criminal.

You may also ask how this affects the entire world? The US holds the world reserve currency and the petro-dollar. Every country in the world trusted the US in holding the world reserve currency when it was once revered globally as a model economy and trustworthy nation…that has come and gone. In being charged with this responsibility, they became responsible for the entire ‘global fiat currency system’. Every nation on the planet now operates solely on this paper money system that is backed by nothing but faith in the government that holds the currency…not backed by any commodity. In effect all the money on the planet is not in fact ‘money’ but is actually ‘credit’. This means every dollar, yuan, rupee, pound etc, etc, etc is debt and not money. The only real money has been and continues to be gold, silver and in some cases for small denomination coin, nickel.

The petro-dollar means that the US has the monopoly on money ever since they removed the gold standard in 1971. Every country has to sell their own currency in exchange for US dollars to be able to buy oil. This part of the story is very crucial and detailed but I won’t get into it here. Here are a couple of links:

http://en.wikipedia.org/wiki/Petrodollar_warfare

http://en.wikipedia.org/wiki/Petrodollar

Now back to our main point. If people only realized what is happening in regards to this MBS purchase agreement by the Fed, they would be outraged. I’m sure that if a poll was taken, the majority of the public would appose such a program knowing that the bill would end up on their laps, and likely end up in a currency collapse. A currency collapse would push millions of people into poverty, out of their homes, and reliant on government assistance. How long could that go on before government collapses all together? Not long…maybe a few years at best. This would cause a ripple effect globally and cause a global economic collapse. Many nations are already feeling the crunch.

Here is an article from GE Christenson:

We Have Been Warned!

by: GE Christenson

November 21, 2002: The Bernank gave his “helicopter” speech in which he made reference to a “helicopter drop of money.” But the critical point in his speech was:

“FRNs have value only to the extent that they are strictly limited in supply. But the Federal Reserve has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many FRNs as it wishes at essentially no cost. By increasing the number of FRNs in circulation or even by credibly threatening to do so, the Federal Reserve can also reduce the value of a FRN in term of goods and services, which is equivalent to raising the prices in FRNs of those goods and services.”

Currently the “helicopter drops” are primarily fed into the reserves of the banks and to cover the increasing deficits between government expenses and revenues. There is no end to how many FRNs the Federal Reserve can create. At the time of the Bernank’s speech, an ounce of gold was worth approximately $320. As of September 2012, that same ounce of gold is worth over $1,700. The gold has not changed, but the value of their FRNs has declined. As more FRNs are created or “dropped from helicopters,” all existing FRNs become less valuable. We have been warned.

September 11, 2001: The official story is that two jets crashed into two World Trade Center buildings and caused three buildings to collapse. The violence and destruction was blamed on Al Qaeda aka the “Toilet” and provided the impetus for “The Patriot Act” and two massively expensive wars in Iraq and Afghanistan. For 6,000 years the Middle East has been filled with anger, hatred and war between the people and countries of the Middle East and toward outsiders such as England and the United States. The 9/11 attack was one of many in an ongoing series of Middle East related violent attacks that seem destined to continue.

Regardless of who was responsible for the loss of life and the horrific destruction of 9/11, war tensions are increasing in the Middle East and another devastating war is increasingly probable. Nuclear war has been threatened. The adverse consequences for the economies of many nations, destruction of life and property and other collateral damage will be dreadful. When will the violence and destruction end? We have been warned.

2007 – 2008: A financial crash caused the S&P 500 index to drop over 55%. People lost their homes, unemployment climbed much higher and has not come down, many businesses closed and the standard of living for most Americans declined. The crash was at least partially caused by excessive leverage in the financial community including derivatives rated AAA when they were better described as “toxic waste” and possibly fraudulent. An over-leveraged financial system is prone to crashes. Nothing of substance in our financial system has been fixed. Many believe another financial crash

is inevitable and perhaps imminent. We have seen it once. As noted by many astute individuals, it can and probably will happen again. We have been warned. September 2012: Five renowned economists published an editorial in the Wall Street Journal. They said:

“The problems are close to being unmanageable now. If we stay on the current path, they will wind up being completely unmanageable, culminating in an unwelcome explosion and crisis.

The fixes are blindingly obvious. Economic theory, empirical studies and historical experience teach that the solutions are the lowest possible tax rates on the broadest base, sufficient to fund the necessary functions of government on balance over the business cycle; sound monetary policy; trade liberalization; spending control and entitlement reform; and regulatory, litigation and education reform. The need is clear. Why wait for disaster? The future is now.”

They understand the problems and the solutions to our current economic problems. Must we wait for another financial and economic crash and more violence and bloodshed before we can intelligently act in our own best interest? We have been warned.

September 2012: The national debt exceeds $16,000,000,000,000. This does not include other “off-budget” liabilities such as the present value of future costs of Medicare, Social Security, and federal pensions. Prof. Lawrence Kotlikoff of Boston University relies on the statistics from the Congressional Budget Office. He estimated the present value of the “off-budget” liability at approximately $220,000,000,000,000. Does anyone really believe that quantity of FRNs will be created by growth in the economy? It appears that continual “helicopter drops” of “printed” FRNs, such as QE3, are the only likely answer from the Federal Reserve and our Congress to address our out of control deficits, out of control debt and out of control entitlements! David Stockman, former head of the Office of Management and Budget, and many others have fervently proclaimed that these deficits, liabilities and debts are unsustainable. We have been warned.

2007 – 2012: J.P. Morgan told Congress in 1912, “Gold is money. Everything else is credit.” Russia and China have been purchasing gold (real money) in huge quantities from around the world. Gold is rapidly leaving western economies and flowing into Russia, China, and other Asian countries. What do they understand that we, in the west, are ignoring? We have been warned.

There have been numerous other warnings regarding our on-going economic, financial, and political self-destruction. Observe the reality of continual war, an unsustainable financial system, and the insanity of self-destructive political decisions. We have been warned.

Conclusion:

Expect more trauma dead ahead. As they say, “rig for stormy weather.” The forecast, as I see it, is for:

* Increased “money printing.” “Quantitative Easing to Infinity and Beyond,” “QE4-Ever,” and “Inflate or Die” seem accurate.

* Substantial consumer price inflation. I don’t think we’ll spend $100 to pay for a cup of coffee, but I do think very uncomfortable prices for food, energy and other essentials are inevitable.

* Regardless of who wins the 2012 Presidential election, his term will be filled with tremendous economic, financial and political challenges.

* A severe economic recession in 2013 seems inevitable.

* Another financial crash within a year seems likely.

* A financial crash could lead to an economic crash, in which the economy cannot provide for basic needs or services to a substantial number of people for an uncomfortable period of time. Think Greece in 2012, Spain in 2013 and the USSA in 20XX.

* The government will “do something,” and it will not help.

* There is still time to buy gold and silver.

* We have been warned.

 

Voltaire said in 1729: “All paper money eventually returns to its intrinsic value – ZERO.”

WE were warned – almost 3 centuries ago.

The Bernank announced QE3 on September 13, 2012 – the next step in the process of pushing their FRN down toward its intrinsic value. Not only is the Fed making a commitment to purchase $40 Billion per month of MBS (mortgage backed securities) from large banks with “newly printed money,” it is also making an open ended commitment – there is no end date. Ultimately this is highly inflationary for the American public and very beneficial for the banks holding what is often referred to as “toxic waste” (MBS) that can be dumped onto the Fed at full face value. Hopefully the bailouts to the banks will allow them to loan that newly created money into the economy so it benefits real people and “Main Street.” Regardless, we have been warned about the consequences of printing money and the resulting consumer price inflation.

QE3 looks like a desperate act to feed money to large banks, offload MBS toxic waste from their balance sheets, and devalue their FRN against houses, commodities and other fiat currencies. There will be significant collateral damage but apparently funneling money to the banks is more important.

It was inevitable that such action created an abundance of commentary. I have quoted a number of respected economists and critical thinkers on the subject of QE3.

Peter Schiff is a best-selling author and famous for calling the housing bubble when almost everyone thought he was an extremist and utterly wrong. History has proven he was correct then and I believe he is correct now. He stated:

“In the meantime, the implications for American investors should be clear. The Fed will try to conjure a recovery on the backs of currency debasement. It will not stop or alter from this course. If the economy fails to respond to the drugs, the Bernank will simply up the dosage. In fact, he is so convinced we will remain dependent on quantitative easing that he explicitly said he won’t turn off the spigots even if things noticeably improve. In other words, their FRN is screwed.” (Operation Screw)

Daniel Amerman wrote regarding the Bernank, QE3 and the effort to devalue their FRN:

“This building crisis of a strengthening FRN and rising unemployment called for emergency action, and that is exactly what the Bernank is doing. He is effectively calling in a B-52 air strike on their FRN, monetizing for the world to see and pledging to monetize for as long as it takes – until their FRN is driven down to a level where American workers can once again be globally competitive.” (Unraveling Why A Fed President Just Suggested Doubling QE3)

Peter Schiff also wrote on the Bernank, QE3 and the necessity for a poor memory in the economics profession:

“Instead he explained how the new stimulus would be focused directly at the housing market through purchases of mortgage backed securities. He made clear that this strategy is intended to spark a surge in home prices that will in turn pull up the broader economy. Such a belief requires a dangerous amnesia to the events of the last decade. Despite the calamity that followed the bursting of our last housing bubble, economists feel this to be a wise strategy, proving that a poor memory is a prerequisite for the profession.” (The Fed Plays All Its Cards)

Steve Saville wrote regarding The Fed, QE3 and the potential for more QE in addition to the QE3 already promised:

“So, the Fed has done what we thought it would have enough sense not to do at this time. The US now has “QE3″. The Fed has said it will purchase $40B per month of mortgage-backed securities, indefinitely. This is being done to ‘put downward pressure on longer-term interest rates, support mortgage markets and help to make broader financial conditions more accommodative.’ Interest rates are at generational lows, but the Fed believes that what the US economy really needs right now are lower interest rates…. The bottom line is that when this latest program doesn’t achieve the intended results, it won’t be perceived by the Fed as a failure of ‘monetary accommodation’. It will, instead, be perceived as a failure due to insufficient monetary accommodation

and therefore as a reason for an even higher dose of the same bogus remedy. This process is likely to continue until price inflation is widely perceived as a major problem.” (Fed Up)

Charles Hugh Smith described The Fed as “The World’s Largest Money Laundering Machine.” He questioned the morality of QE3 and explored the real reason for QE3. He wrote:

“Once again we can start by asking why a nation’s Central Bank should buy mortgages from private financial institutions. Once again the first answer is a variation on the same theme: the Central Bank prints money and buys the mortgages as a way of socializing private losses and passing through billions of FRNs in “free money” to private hands… Since the Fed can create unlimited money, why not pay off every mortgage in the land? That’s only $9.7 trillion and if the Fed wanted to unleash an orgy of spending, that would certainly do it. Trillions in losses would be filled with “free money,” since the Fed would pay the full value of all mortgages.

This thought experiment reveals the real agenda of the Fed’s asset purchases: it’s not about aiding the nation or borrowers, it’s all about funneling “free money” to the banks to restore their balance sheets and profits.” (The World’s Largest Money-Laundering Machine: The Federal Reserve)

Peter Schiff further discussed QE3 and likened it to a runaway train rushing toward a brick wall. He concluded:

“The Bernank and his Wall Street supporters see cheap money until the horizon – but that horizon is really a painted brick wall. So it’s not QE-Infinity, it’s QE until the Fed either recognizes the brick wall and slams on the brakes, or doesn’t and crashes into it. Either way, the only way to get off this locomotive is to invest in hard assets.” (Riding Into The Sunset or a Brick Wall?)

William (Bill) H. Gross founded PIMCO, a huge bond investment fund that manages over $1 Trillion in assets and is highly respected in the financial community. Mr. Gross wrote in his October 2012 commentary (Damages) that he is afraid (my words) for the structure and integrity of the economy and the financial markets of the United States. He further stated that the United States is an addict “who frequently pleasures itself with budgetary crystal meth.” He is not optimistic about current monetary and fiscal policies and even advised purchasing gold as an alternative to bonds, the investment business that made him wealthy.

Steve Saville wrote further about bad economic theory in the form of QE3 and discussed the basic nature of The Fed. He said:

“We’ve speculated in TSI commentaries that unwavering devotion to bad economic theory (a type of stupidity) is the most likely reason for the Fed’s introduction of a new inflation program at this time. There are other plausible explanations, but in

general terms it boils down to this: the Fed is either stupid, or evil, or stupid and evil. There is no fourth possibility that makes any sense. It is either evil enough to inflate the currency in an effort to help banks (or the re-election chances of Obama) even though it knows that doing so will harm the overall economy; or it is stupid enough to believe that the economy can be helped by creating money out of nothing and distorting the price signals upon which an efficient market relies; or it is evil enough and stupid enough to believe that it can transfer wealth to the banks and simultaneously create a net benefit for the overall economy. We’ll go with evil and stupid.” (The Fed is the great enabler)

Months before QE3 was announced, Congressman Ron Paul discussed the consequences of Fed actions and stated that expanding the money supply is the root cause of inflation: He stated:

“The American public now senses that the Fed’s actions, especially since 2008, are enormously inflationary and will cause great harm to the American economy in the long run. They are beginning to understand what so many economists still don’t understand, which is that inflation is a monetary phenomenon and rising prices are merely a symptom of that phenomenon. Prices eventually rise when the supply of FRNs (paper or electronic) grows faster than the available goods and services being chased by those FRNs.…The true evil of inflation is that newly created money benefits politically favored financial interests, especially banks, on the front end. Over time, however, the net result of monetary inflation is always the devaluation of savings and purchasing power. This devaluation discourages saving, which is the key to capital accumulation and investment in a healthy economy. Inflation also tends to hurt seniors and those living on fixed incomes the most.” (Inflation is a Monetary Phenomenon)

Deepcaster wrote regarding QE3 and how it would weaken the purchasing power of their FRN and hurt the middle class and their standard of living. He stated:

“This debauchery of their FRN weakens its purchasing power and thus increases burdens on the agonized disappearing middle class.

The Bernank claims that buying $40 billion per month in mortgage backed securities would stimulate the economy and help the housing market is just a fictitious cover story. In fact, it is just another gift to the Mega-Banks who hold underwater paper and to Wall Street which proceeded to rally on a Fed-sugared high. And, of course, it is a pre-election gift to President Obama. Important Consequences will ensue.” (Golden Numbers, Ersatz Numbers & Profit Nuggets)

We have been warned! QE3 is now pumping newly created FRNs into the large banks. Expect the US money supply to dramatically increase as a consequence of QE3 and yet-to-be announced additional stimulus (printing money – injecting liquidity into the financial system). Expect increased consumer price inflation and a declining standard of living for the middle class of the United States. The banksters will benefit, but many

others will suffer. An economic recession seems inevitable, another financial crash seems likely and the social unrest we see in Greece, Spain and Italy may visit the United States as soon as the next congressional election.

The government will “do something,” and it will not help the middle class! Perhaps QE4 on steroids will be next.

There is still time to buy gold and silver to protect your assets before their FRN declines further. If you are skeptical of the trend, examine the exponential rise in gold, and the exponential rise in silver. With QE3 officially announced and huge US government budget deficits projected for the foreseeable future, the long-term uptrend in gold and silver, for at least several more years, is now assured.

There is still time to buy gold and silver. We have been warned!

END OF ARTICLE…

I am also currently reading a book called ‘Founders’ by James Wesley Rawles. It is an account of what will likely come to be as this currency crisis becomes a currency collapse, written in novel form. James Rawles is an US ex-military person with extensive training in survival scenarios and in tune with the US ‘plan’ that is ongoing when it concerns the global economy and geopolitics. It’s a must read for anyone who wants to know more about what’s up ahead real soon and how to prepare for it.

Whether we look at the bailouts or any other monetary program that is devaluing our money, increasing debts to unimaginable and levels that are not repayable, eroding our savings..globally..and want to make change before it’s too late, or whether we believe it’s all too far gone and on the verge of collapse now, we all need to be prepared for what’s ahead either way.

Get prepared. Even natural disasters such as the recent ‘Hurricane Sandy’ has shown us all that not being prepared for ANY emergency can have disastrous consequences. But not being prepared for a global financial collapse can literally be deadly.

Get prepared…

Regards, Frank

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Quote of the Day…by Ludwig Von Mises

30 Tuesday Oct 2012

Posted by Frank's Blog in depression, economic collapse, economic transition, fiat currency, Freedom, gold, hyperinflation, national debts, rich elite, silver, tangible assets., Uncategorized

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Austrian School, Banknote, Business cycle, Canada, central bank, currency, debt, depression, economic collapse, Federal Reserve System, Fiat currency, gold, Hard currency, Jim Cook, Ludwig Von Mises, Middle Class, Miles Franklin, money, print money, SDR, silver, Stock market, United States

Ludwig von Mises

Ludwig von Mises (Photo credit: Wikipedia)

Money is not arbitrary pieces of paper but must originate as a useful and valuable commodity…Ludwig Von Mises

 

 

 

 

 

 

 

 

In reading my usual morning e-mail from Miles Franklin, I read that Jim Cook wrote an essay on Ludwig Von Mises called, ‘National Bankruptcy: Why The Middle Class is Doomed’. Here are few quotes from that as well:

In a brilliant and important theoretical accomplishment Mises answered a problem most economists thought unanswerable. How can we explain that the price of money is influenced by demand if to have demand it must first have a price? He traced the origin of money back in time to a useful barter commodity (e.g. silver and gold).

 The dramatic implication was that money could only originate on the free market out of demand. Government, despite any attempts to the contrary, could not originate money. Money is not arbitrary pieces of paper but must originate as a useful and valuable commodity. Mises also pointed out how central banking acts as an accomplice to government money expansion. And he began to explain his great business cycle theory. Recognizing that the market economy could not generate by itself a series of booms and busts he fixed the blame on an outside factor – the habitual expansion of money and credit.

Here is the link to the rest of the Miles Franklin daily blog about Ludwig Von Mises and this book:

http://blog.milesfranklin.com/do-you-know-what-a-crack-up-boom-is-you-should

Enjoy and Best Regards, Frank

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