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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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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

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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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A Reflection of our Society

21 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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Canada, Christmas and holiday season, economic collapse, Federal Reserve System, Fiat currency, GOD, gold, IMF, Precious metal, print money, United States

Together We Stand

Together We Stand

A Reflection of our society, by the Sovereign Man, Simon Black

December 20, 2012
Sovereign Valley Farm, ChileEveryone has a catalyst. A breaking point where we finally say, “enough is enough” and finally begin to take action.

Maybe it’s watching your beautiful daughter be sexually assaulted by government agents for having committed the crime of flying to Disney World. Or having some government agency tell you what you can/cannot put in your body. Or having your son’s lemonade stand shut down. Or being sentenced to jail for collecting rainwater.

Many of us, though, are indoctrinated from birth to believe that our country is the best, highest pinnacle of civilization. So we’re programmed to hang on to the bitter end. Instead of taking action at the first sign of danger, we’ll wait… and wait… and wait… until we finally reach our breaking points.

This is unusual for a living species. Animals in the wild have a honed sense of danger. They survive because they listen to their instincts and take immediate action.

We humans, on the other hand, have decades of propaganda clouding our judgment. It’s been this way for most of history, in fact. In the past, we allowed ourselves to be enslaved to single individuals– kings, emperors. Now we’re enslaved by an idea.

This idea suggests that, simply because we happened to be born on a specific piece of dirt, that we can be saddled with obligations we never signed up for… to pay taxes, serve in the military, spend our entire working lives paying down the debts of previous generations, use a corrupt money system controlled by a tiny elite, etc.

The propaganda is so effective that people truly believe these are all the ‘costs of living in a free society…’ As if the society is actually free.

Yes, the West is replete with superficial conveniences– Starbucks-a-plenty, big box retail shops, TGI Fridays, sit-coms, and cookie-cutter subdivisions.  But this all seems a pithy yardstick to measure freedom or quality of life.

In addition, the propanda is so effective that people even ask for their freedoms to be taken away, all so that the ruling elite has more control.

“Please bathe us in radiation to protect us from men in caves…”

“Please conjure infinite money out of thin air to protect us from bank failure…”

And now it seems to be “Please disarm the population to protect us from crazed killers…”

Each time this happens, national dialogue comes to a screeching halt. There is no debate over policy, and any dissent is branded as unpatriotic and disloyal.

History is full of examples of this, starting as far back as the death sentence of Socrates for rejecting the state religion, criticizing Athenian political leaders, and questioning the validity of Democracy.

When a society loses its capacity for intelligent discourse focused on facts and minority-held views… when a people loses the will to question authority… it signals a hastened decline into tyranny.

This is prevalent everywhere in the west today. Topics such as climate change, September 11th, ‘taxing the rich’, gun control, etc. are so sacrosanct that the mere mention of a dissenting opinion is ridiculed.

I understand that a man went on television recently, for example, to argue for freedom and the right to bear arms. He was lambasted on live TV as an ‘unbelievably stupid man’ who doesn’t ‘give a damn about the murder rate’.

It seems quite obvious now. There can be no discussion. And at some point, a reasonable human being has to reflect on the society that has developed around him and wonder, “Do I have anything in common with these people anymore…? Do we share any core values? Or do we simply share the same passport cover?”

It’s certainly a question worth asking… ideally before you reach your breaking point.

Until tomorrow,

Simon Black
Senior Editor, SovereignMan.com

Do you ever feel like giving up on your quest to spread the truth? Do you ever feel like people just don’t give a rats you-know-what about it all anyway?

I’ve been trying wholeheartedly for many years to spread truth about the system we live in and are forced to live by. A system that is controlled by a few terrible and heartless profit seeking power mongers. I’ve seen down to the bottom of the rabbit hole personally and it sickens me to know what the truth is. Once the curtain is pulled back there is no turning back. Like the fellow on the movie, ‘The Matrix’, where he just wants to be plugged back into the power plant and be oblivious to the reality, it’s easy to be tempted to give up and walk along the rest of the sheeple being fed spoonfuls of shit and smiling about. Believing in their heart of hearts that they are truly free. It’s sad actually that we as humans have allowed this to happen. That we have allowed a few stealthy and sneaky elite groups con us into this paradigm, this system of slavery. Some say that here in the West we should be grateful about our system, saying that other countries have it much worse. This thinking is the exact reason why a few people can ultimately rule over the masses. This entire planet should live truly free and prosperous if the people of this planet were allowed to do so freely. Think about it closely, without even knowing what’s behind the curtain. What can you do in this system that does not constitute breaking a law or statute in the area in which you live. You can’t even walk down the street without breaking some or many laws on ‘the books’. Laws that are continuously being changed, increased in scope and rules to take away the few rights truly have left.

This Christmas season we can ultimately be thankful that we have God on our side if we chose to have God. And that this planet is but a blip in time of our existence in this matrix we call ‘our world’.

Have a Merry Christmas and keep up the fight.

Best Regards, Frank

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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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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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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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Switzerland..The top country in the world..A Direct Democracy

27 Saturday 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, Canada, central bank, currency, debt, depression, Direct democracy, economic collapse, European Union, Federal Reserve System, Fiat currency, gold, Government, Hard currency, IMF, Politics, Precious metal, print money, Representative democracy, SDR, silver, Switzerland, United States

Direct Democracy…the real people’s government

First a few definitions:

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

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

After reading these two definitions of democracy, did you think that when governments say they are promoting democracy around the world economically or through war efforts, that they meant ‘direct democracy‘ or ‘representative democracy‘. Because these two different types of democracy are just that…very different.

Switzerland operates under a direct democracy. In my opinion, the preferable type of democracy if democracy is the intended goal of a country. The people make laws and vote on them, not just a few elected representatives. This when elections in the West and in most nations are now just a dog and pony show and no longer a true and just process for the people. Corruption, lobbying and money in the back pockets of politicians from large corporations, banks and the like influencing laws, policies etc, etc.

Using fiat currency as a trading medium (I don’t call it money because currency is not money but in fact debt), a direct democracy is the way to control the exponential curve of perpetual currency creation. It does this because the populous of a nation under such a democracy keeps the government under control and in turn the currency system under control. THEY do in fact have control over the government, because they ARE the government. A falsehood that the people in many nations believe is the case with their governmental system under representative democracies.

Once people HAVE to become involved in the decisions of just about everything concerning their nation, they read, they learn and they begin to understand what negative effects exponential currency creation causes, such as inflation and hyperinflation. They are making the decisions that will affect them in the future and are forced to learn about what they are voting for. Not so when people become complacent believing that their government representatives make all the RIGHT decisions for them in a representative democracy, the economy being the most important globally right now.

As we know from this blog, inflation is the silent tax that erodes the purchasing power of the currency..the supply and demand effect. More of something readily available means its value or need decreases in turn decreasing its value to the people. It crushes savers and writes down debt while simultaneously destroying the currency. Zimbabwe is the mother of all inflation stories around the world:

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

 

Now here is the proof that Switzerland under a direct democracy is preferable to the way the other western nations such as Canada, the United States and most European countries operate under representative democracies.

http://www.thedailybell.com/28206/Frank-Suess-Switzerland-Will-Continue-to-Thrive-and-Outperform

http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf

http://online.wsj.com/article/SB10001424052702303459004577361622927199902.html

Maybe other nations…the people of those nations…should take a much closer look at what is happening to the western nation governments, economies, debt, corruption and freedoms. Then they need to consider what type of election process really provides the best alternative for the people of those nations. The dog and pony show obviously NOT being the best way in my opinion. Switzerland is a good lead in that aspect. Even though they do continue to use a fiat currency system.

My guess is that if any country in the world finally chooses to completely or partially switch back to a gold standard as the global fiat currency system collapses…it will be Switzerland in the lead once again.

Get prepared…

Best Regards, Frank

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