Tag Archives: Federal Reserve

The Rule of Law Is Dead In America

Constitution-Dead

Obama’s latest bypassing of Congress to implement a Climate Change Treaty by decree illustrates there is now only Rulers and the Ruled

I have been working for the last few weeks on an essay series related to what a moral and religious remnant must understand in the light of current events and politics under the Obama regime.

The affronts to what is left of our Constitutional Republic are happening now daily – almost to the point we cannot keep up with them.  We reel from yesterday’s affronts while new ones break today.  Americans are growing weary of outrage – as the tripwires to prevent despotic tyranny via the checks and balances instituted in our government system are compromised, ignored or overthrown altogether.   Most of the Federal Representatives in Congress have decided to go along with this velvet coup, because they know where the power is going to lie and they want a seat at the table so they can pass their hat and have our money thrown in it.

This is all by design – a technique of attrition to trod any resistance into surrender and capitulation.

What it lays before us in raw form, is the undeniable fact that the rule of law in America is dead.  There is now only law made or agreed to by the rulers to be imposed on those of us they rule.

Karl Denninger at Market Ticker just posted an excellent opening entree to the essays I have been working on and will post soon.

The Impending Catastrophe

It’s not difficult to see this coming, if you bother to look.

There is no rule of law any more if you’re a government employee — or one of those protected by same.

Let’s put together just a partial list:

  • Health care.  Monopoly and/or cartel behavior of any sort is supposed to be illegal under 15 USC (Sherman and Clayton Acts) if market power exists.  When you’re flat on your ass with a heart attack in process there is no market; ergo, it exists.  Ditto when you were just stung by a scorpion, or when the so-called “treating facility” refuses to present you with a price before they have you on the operating table — and they told you that the operation was immediately necessary to save your health and/or life.  That’s essentially all procedures except for elective, cosmetic ones — where there is actual competition and prices have fallen over time.  All of this behavior, from charging $60,000 for two $100 vials of scorpion antivenom, charging someone $9,000 to bandage a finger or billing a routine $10-30 test at $10,000 is part and parcel of this, and in any unprotected line of business everyone involved would do 10 years of prison time and be fined $1 million each.
  • Government agencies, such as the IRS and NSA.  The number of times that have been documented in which perjury has been committed, a crime, (cough-Clapper-cough!) is too long to list.  We now find out that in the IRS targeting investigation not only is there a backup of Lerner’s computer (as I originally asserted there had to be) but IRS lawyers admitted to the intentional destruction of the data on her BlackBerry after the investigation began.  For you or I that would immediately result in an obstruction of justice felony charge leveled against everyone involved – including Lerner herself.  Well, where is it?
  • Education.  Cartel behavior at its finest.  You can find virtually any sort of knowledge and lectures on any topic you wish online nowdays.  Yet without obtaining them at a price infinitely higher than those freely available, the exact same material I might add and often delivered by the exact same professors, your knowledge is deemed immaterial and worthless.  This occurs due to cartel behavior between universities and businesses — again, something that should bring immediate prosecution under 15 USC.  Well, where is it?
  • Education again.  Not content to try to force you to pay them something they also conspire to force you to pay more.  Once you’re a captive sucker you get hammered on all sides; you are first told to file a FASFA in which your parents must disclose their assets and income, never mind that you’re an adult.  Then, if you’re not poor, despite this being sold to you as being a means of obtaining “aid”, you are offered only loans, which are not aid at all.  This particular cartel behaviorincludes the government as they will attempt to force you to file one even to claim things they say are earned, such as “Bright Futures” scholarships!  Once you get to class it’s even worse; your son or daughter who paid the full price (and had to borrow the money and thus pay interest too!) is sitting next to a kid who paid little or nothing.  How?  Your son or daughter was effectively forced to buy his tuition!  Communism at its finest, all at gunpoint.
  • So-called “law enforcement.”  Point a gun at another person when you are not legally permitted to shoot (e.g. to stop a forcible felony in process) and you are arrested and charged with assault with a deadly weapon (or aggravated assault in some jurisdictions.)  The identical behavior was documented on video and still camera images all over Ferguson by the police; where are the indictments?
  • Banks.  Swindle someone out of $10,000 and it’s grand theft, extortion, fraud or any one of a dozen other crimes, all serious felonies.  Hell, all you have to do is a pass a bad check in many jurisdictions to wind up on the wrong end of a felony indictment!  It has been proved that myriad large banks sold securities to customers representing them as “good investments” when in fact their own internal emails document that their staff called them “vomit” (and other similar names) — that is, they knew they were worthless.  Where are the indictments?
  • The Federal Reserve.  The Federal Reserve Act specifically charges the FOMC with regulating both money and credit so as to maintain stable prices, moderate long term interest rates and maximum employment.  Maximum employment may be a loosely-defined goal as may “moderate” long-term interest rates but stable is not a fuzzy word.  The Federal Reserve has willfully and intentionally violated this mandate serially since its inception.  You have about 3-4% of your earnings powerstolen every single year as a consequence.  Where are the indictments?
  • Ben Bernanke has admitted that (in his view) virtually all systemically important financial firms were on the edge of collapse in 2008.  This, he cites, is justification for his extraordinary policy moves.  There’s a problem — his mandate is to regulate said money and credit systems all the time, not just in a crisis.  That filing is an admission that both he and the NY Fed failed to do so; that is, they failed to perform their statutory duty.  Why aren’t both he and Tim Geithner in prison, seeing as he made this admission before a court in a sworn filing?

Here’s the problem with this sort of behavior and the protection of same: Civility in general only exists because you, I, and most of the rest of society willingly conform our behavior to the law.  

There are not enough cops, no matter what sort of badge and uniform they wear, to enforce the law otherwise.  If any material percentage of the population decides to behave as these people in their protected circumstances have and do the entirety of law and order collapses instantly.

Well, why is it that you permit the above to occur?  Why did you allow it to develop?  Why do you still allow it?

And how long will it before all of this theft and fraud renders you unable to keep your head above water?

Let me explain that for you: For most people you’re already unable.

Look at the stock market, as one example.  There is more margin debt outstanding than cash in accounts as of today, and in fact this margin is worse than ever before in history (yes, even worse than in 2007.)  In other words, but for the claimed paper value of said certificates the market is factually bankrupt right now on a gross, “every man” basis!

Almost 20% of the gross domestic product of this nation (that is, everything produced) is siphoned off by the health care “system” with its grift, extortion and abuse.  That’s nearly one dollar in five!  A look at other developed, first-world nations (e.g. Japan) discloses that we should be able to buy our health care for somewhere between 1/10th and 1/5th of what we pay today.  Were that to be the case there would be no need for Medicare, Medicaid or health insurance — Obamacare or otherwise! Medicare is a great example; you’re responsible for 20% of the cost, by default, and you must pay a premium to the government.  But if your care was anywhere from 1/5th to 1/10th of today’s price you would actually pay less than the co-pay and deductible you pay today and you wouldn’t pay any premium at all!  In other words, even for the old guy or gal that currently is “on the dole” and allegedly “getting something” you’d be better off financially without Medicare were all of these acts to be prosecuted instead of protected!  Whether you’re rich, poor, young or retired, this scam steals from you each and every day without delivering any more value than it would without the theft.

Take the scam out of education and the cost collapses.  Now you could flip pizzas to pay for college as you could in the 1970s and early 80s before those schemes were instituted.  Prosecute The Federal Reserve Board and Banks and the price of assets, including houses would collapse — probably by 75% or more.  Not only does this mean you could buy a house for far less but for those who choose not to or who can’t rents would come down by 3/4 as well!

Why do you need Section 8 and other similar programs when your cost of housing is cut to a tiny fraction of what it is today?

You don’t!

If you believe that the cost of food hasn’t skyrocketed in the last five years you’re not paying attention.  It has.  Ditto for energy.  Oh yes, those are “excluded” from “inflation” numbers, but you have to buy them anyway.

So what happens when you can’t make the income balance against the outflow?  You borrow money in some form or fashion.

Yet that simply puts you further in the hole.

And that’s what’s been going since roughly 1980:

Of course borrowing against nothing, that is, creating credit with nothing behind it, looks good initially because it makes it appear you can keep buying things.  Unfortunately that credit comes with both a requirement to repay it and interest; the latter is a huge problem because over time it compounds just as do earnings.

The usual chestnut is that borrowing stimulates production and is of net benefit.  But the facts are that when borrowing accumulates faster than output that assertion is proved false; what is really going on is that people are borrowing to either consume or speculate.  The former permanently destroys value and the latter leaves you exposed to instant insolvency since the alleged “price” of what you speculate on has been disconnected from its value and is now largely (or even entirely!) predicated only on what someone else will pay.

The majority opinion appears to be that as long as you can get your little piece of the grift, whether it be Medicare, Food Stamps, Section 8 or a rising stock market it’s all ok.  Ask yourself — is that actually true or are you deluding yourself?  Are you falling behind despite getting your little piece of the grift or are you getting ahead?  What about your children?  Are they able to get ahead?  Is the same sort of investment you made 20 or 30 years ago credible as a means for them to obtain results similar or superior to what you obtained, or are they staring down a black hole of indebtedness while pulling coffees at Starbucks?  How about that “new car”; nearly $40,000 today as a “median” price and loan terms extending toward eight years — when just a little while ago the normal term was four.  How’s the job market in your area?  More importantly than the number of jobs — how’s the pay and how does that compare against the increase in health care, food, fuel and insurance expenses you must pay every day just to remain solvent?

Think about it for a while.

Then once again contemplate this: For how long as you going to allow all of the above to continue?  Will you allow it to continue right up until civility is lost entirely or will you demand that it stop and that those committing these acts face the same charges and penalties that you or I would for the same offenses?

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Filed under Economy, Obama Marxist Tyranny

It’s Time to Accept Reality that it’s Too Late

Guest Essay from my dear Friend John over at Shenendoah.  Sums up my sentiments based on the news I am reading while over here in the third world.

Will I even have a country left to return to?

It’s Time to Accept Reality that it’s Too Late

by John Galt
February 26, 2012 21:55 ET

Hard as this to believe, I’m no longer going to pound my head on an exposed nail in the wall and preach to the insane that the world is about to end. In fact, I have no intention of any longer telling the foolish that the world is about implode. I’ve warned. I’ve preached. I’ve provided the warning signs. The financial system is irrevocably broken and the idiots in charge continue to preach that all is well, keep moving. Why should I or anyone else continue to say that it will fail? Michael Panzer in his book Financial Armageddon attempted to spell out the obvious and what did that get him? A great selling book yes, but deliberate, calculated mockery on CNBC and other financial networks designed to impugn his work, yet never actually denying the reality of his facts or statements.

Select a politician, radio host, religious figure, or economist who doesn’t toe the line.  Senator McCarthy of Wisconsin was painted as a raving lunatic only to be proven correct by the records of the collapsed Soviet Union some 50 years later. Senator Barry Goldwater was depicted as a warmongering fatalist who wanted the end of the world yet all he advocated were the same policies that were proven prudent and correct by Ronald Reagan just over a decade later. Glenn Beck is being labeled an insane nut job by the “establishment” with a record of alleged racism and Alex Jones like conspiracy radio and television which cost him his job at Fox News, while continuously putting pressure on Clear Channel and the talk radio traditionalists who warn him that he continues to make too many waves.  God forbid a pastor, a preacher, or even a choir boy even dare to question the national leadership’s view on religious issues that cross the line with the liberal establishment now as their tax free protections and Constitutional shield will be ripped away to destroy their ability to pray, preach, and save the souls that come to them because they dare to speak their beliefs.

Sadly, the most abandoned group of souls is not the previous list of honorees, but in fact those men who claim to be of science, the art of economics. While numerous individuals dare to debate the merits of the alleged science of economics, the idea of studying human behavior with historical and scientific relevance has been destroyed since the universal adoption of quasi-Marxism and the ideals of Keynes became the “mainstream” of the elites within the institutions of learning worldwide. The ideas of open learning were abandoned after World War I because in the academia the belief was that diversity of information created the foundation for the “Great War” because it opened nations and peoples to ideals that were too difficult for the average citizen or politician to comprehend. Thus by permeating the myth started within the early era of Marx and expanded with the theories of Keynes that economics was too complicate, the realm of the Dark Ages was restored with the Illuminati or elitists having the ability to comprehend the science much like the early Roman Catholic Church obtained the monopoly of the Bible and Christian religion for centuries.

As Austrian economic theory was often viewed as the Kabbalah of economics by those of the centralized planning and Keynesian view, the minority has survived thanks to the cyclical errors and blunders created by the central banks of the world and misinformed or evil political class. After American abandoned the gold standard which the Constitution demanded, the world perceived that the U.S. was about to move into a more globalist, accommodating stance to depreciate the currency and allow American wealth to be redistributed worldwide thanks to political ineptitude and the inflation tax. For those skeptical readers who doubt the depreciation of the dollar, without illustrating the dramatic 90% plus drop from 1913, here is the graph which indicates just how powerful the inflation tax on consumers has been since 1970:

The last recession with the vivid demonstration of the power of “deflation” or the opposite of everything Bernanke and Company tried to prevent is the only major pause in the inflationary railroad to infinity where the American public is asked to finance the U.S. government and mercantilism to create a demand for a global solution. This demand for a “global” solution should give pause to a sane person but tonight the average North American, European, or Asian citizen is more focused on the antics of Hollywood idiots instead of how the new order is planning to cull the masses. The “truth” is that economics, just like the science of global warming, has been hijacked to fulfill a political agenda for profit and power rather than to inform, study, and educate the systemic flow of capital and emotional behavior as was originally envisioned over a century ago.

It is time for the average person to stop the idea of saving their neighbor, preserving the system by voting for RomneyMcCainBush or ObamaClintonCarter, or believing that the “United Nations” is the ultimate solution to the world’s problems. It is no longer about “let’s create teams” or develop “Tea Parties” to save the Republic or pray for solutions. The reality is that we passed the point of no return in 2008 when Americans actually believed that the screeching of an evil soul who was directing first a globalist bank and then the U.S. Treasury was the truth and salvation of our nation. As that darkness fell in the autumn of that year, our nation fell into the abyss yet most citizens failed to recognize the significance of that event as I did (see Broken Glass, September 24, 2008).

It is too late to save your neighbor.

It is too late to save your friend.

It is too late to save a family member who will not listen or believes in the power of a global solution.

It is too late to plan for a world of freedom and individualism.

Atlas is shrugging, yet nobody cares.

The power of the people is now the rule of law.

Sadly the “people” who are in control are neither those of the Founders or of God.

Prepare accordingly.

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Filed under Chrisitan Viewpoint, Culture War, Economy, Obama Marxist Tyranny

Our Future Is In Mortal Danger

I’m A Student of History: A Change of Historic Proportions is Happening

scaryfuture

Except It Will Not Be The Change You Were Promised or Expecting.

By TPS

I am a student of history. Professionally. I have written 15 books in six languages, and have studied it all my life. I think there is something monumentally large afoot, and I do not believe it is just a banking crisis, or a mortgage crisis, or a credit crisis. Yes these exist, but they are merely single facets on a very large gemstone that is only now coming into a sharper focus.

Something of historic proportions is happening. I can sense it because I know how it feels, smells, what it looks like, and how people react to it. Yes, a perfect storm may be brewing, but there is something happening within our country that has been evolving for about ten – fifteen years. The pace has dramatically quickened in the past two.

We demand and then codify into law the requirement that our banks make massive loans to people we know they can never pay back? Why?

We learn just days ago that the Federal Reserve, which has little or no real oversight by anyone, has “loaned” two trillion dollars (that is $2,000,000,000,000) over the past few months, but will not tell us to whom or why or disclose the terms. That is our money. Yours and mine. And that is three times the 700B we all argued about so strenuously just this past September. Who has this money? Why do they have it? Why are the terms unavailable to us? Who asked for it? Who authorized it? I thought this was a government of “we the people,” who loaned our powers to our elected leaders. Apparently not.

We have spent two or more decades intentionally de-industrializing our economy. Why?

We have intentionally dumbed down our schools, ignored our history, and no longer teach our founding documents, why we are exceptional, and why we are worth preserving. Students by and large cannot write, think critically, read, or articulate. Parents are not revolting, teachers are not picketing, school boards continue to back mediocrity. Why?

We have now established the precedent of protesting every close election (now violently in California over a proposition that is so controversial that it wants marriage to remain between one man and one woman. Did you ever think such a thing possible just a decade ago?).

We have corrupted our sacred political process by allowing unelected judges to write laws that radically change our way of life, and then mainstream Marxist groups like ACORN and others to turn our voting system into a banana republic. To what purpose?

Now our mortgage industry is collapsing, housing prices are in free fall, major industries are failing, our banking system is on the verge of collapse, social security is nearly bankrupt, as is medicare and our entire government, our education system is worse than a joke (I teach college and know precisely what I am talking about)–the list is staggering in its length, breadth, and depth. It is potentially 1929 x ten. And we are at war with an enemy we cannot name for fear of offending people of the same religion, who cannot wait to slit the throats of your children if they have the opportunity to do so.

And now we have elected a man no one knows anything about, who has never run so much as a Dairy Queen, let alone a town as big as Wasilla, Alaska. All of his associations and alliances are with real radicals in their chosen fields of employment, and everything we learn about him, drip by drip, is unsettling if not downright scary (Surely you have heard him speak about his idea to create and fund a mandatory civilian defense force stronger than our military for use inside our borders?

No? Oh of course. The media would never play that for you over and over and then demand he answer it. Sarah Palin’s pregnant daughter and $150,000 wardrobe is more imporant.)

Mr. Obama’s winning platform can be boiled down to one word: change.

Why?

I have never been so afraid for my country and for my children as I am now.

This man campaigned on bringing people together, something he has never, ever done in his professional life. In my assessment, Obama will divide us along philosophical lines, push us apart, and then try to realign the pieces into a new and different power structure. Change is indeed coming. And when it comes, you will never see the same nation again.

And that is only the beginning.

And I thought I would never be able to experience what the ordinary, moral German felt in the mid-1930s. In those times, the savior was a former smooth-talking rabble-rouser from the streets, about whom the average German knew next to nothing. What they did know was that he was associated with groups that shouted, shoved, and pushed around people with whom they disagreed; he edged his way onto the political stage through great oratory and promises. Economic times were tough, people were losing jobs, and he was a great speaker. And he smiled and waved a lot. And people, even newspapers, were afraid to speak out for fear that his “brown shirts” would bully them into submission. And then, he was duly elected to office, a full-throttled economic crisis at hand [the Great Depression]. Slowly but surely he seized the controls of government power, department by department, person by person, bureaucracy by bureaucracy.

The kids joined a Youth Movement in his name, where they were taught what to think. How did he get the people on his side? He did it promising jobs to the jobless, money to the moneyless, and goodies for the military-industrial complex. He did it by indoctrinating the children, advocating gun control, health care for all, better wages, better jobs, and promising to re-instill pride once again in the country, across Europe, and across the world.

He did it with a compliant media–did you know that? And he did this all in the name of justice and . . . change. And the people surely got what they voted for.

(Look it up if you think I am exaggerating.)

Read your history books. Many people objected in 1933 and were shouted down, called names, laughed at, and made fun of. When Winston Churchill pointed out the obvious in the late 1930s while seated in the House of Lords in England (he was not yet Prime Minister), he was booed into his seat and called a crazy troublemaker. He was right, though.

Don’t forget that Germany was the most educated, cultured country in Europe. It was full of music, art, museums, hospitals, laboratories, and universities. And in less than six years–a shorter time span than just two terms of the U. S. presidency–it was rounding up its own citizens, killing others, abrogating its laws, turning children against parents, and neighbors against neighbors. All with the best of intentions, of course. The road to Hell is paved with them.

As a practical thinker, one not overly prone to emotional decisions, I have a choice: I can either believe what the objective pieces of evidence tell me (even if they make me cringe with disgust); I can believe what history is shouting to me from across the chasm of seven decades; or I can hope I am wrong by closing my eyes, having another latte, and ignoring what is transpiring around me.

Some people scoff at me, others laugh, or think I am foolish, naive, or both. Perhaps I am. But I have never been afraid to look people in the eye and tell them exactly what I believe–and why I believe it.

I pray I am wrong. I do not think I am.

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Filed under Culture War, Politics

The Economy of Broken Glass

 

BROKEN GLASS

By John Galt

The photo of the JP Morgan Chase building in Houston, TX with all of the broken windows thanks to Hurricane Ike is the perfect metaphor for our shattered financial system. The symbolism of the fractured chunk of a window in the photo above is the ultimate image for describing what is happening to our economy and worse an indication of the destroyed solvency of the Federal Reserve banking concept. The irony is that it was good old J.P. Morgan who concocted and promoted the very system which is now at risk.

The transparency that glass is supposed to provide for those on the outside and inside is often smoked over or tinted by these financial towers so Joe Q. Public can not look in to see what is happening inside. This same discoloration of the glass to diffuse or block the ability of the public to see what is happening also obstructs these “Masters of the Universe” and their view of Main Street, U.S.A.  These “giants” of our financial industry have absolutely zero perception or understanding of how the average man or woman lives in this nation. To make matters worse, the majority of them have little if any empathy for the small or mid-sized entrepreneurial businessman or the jobs their enterprises create. Now, after a disaster of such monumental economic proportions, we are not asked, but told it is our duty to trust what is happening behind these darkened buildings and pay for their mistakes.

Today, that window is broken, as is our banking and financial system.

Jagged glass falling from a damaged skyscraper can cut or kill a person or in this case, an economy. The destruction of the credit establishment and expansionist enterprises in our banking sector will eventually result in a deflationary depression unless action is taken to expunge the bad paper or debts immediately. The question is the path that will be chosen to reach this final result. The logical solution would be for the central banksters of these United States, our Federal Reserve, and their partners in crime, the politicians, to protect their Ponzi scheme and inflate their way out of this mess, passing badly devalued dollars off between each other and foreign powers to eliminate the overhanging corporate sector and government debt. This action would cause great distress domestically and internationally but who cares about the citizens of these nations and the pain they would suffer? The main thing in the eyes of the politicians and banksters is to protect the system, not the nations involved in this system.

The alternative path which in their eyes protects their fiefdoms, is to deflate and unwind the overhanging issues, eliminating competition and contracting the size of the banking system, once again inflicting unmentionable pain on citizens not just in the United States, but worldwide. Unfortunately for these Princes and Lords, the world political situation and level of civility is far different than in years past. America is no longer an overwhelmingly dominant geopolitical power with unending military resources to plant the flag and push or persuade our friends and enemies into a desired outcome. The theory that our money is the greatest thing since gold no longer holds true. The purity of our motives when our military is used can no longer be trusted. And sadly, the arrogance of our political class has soured some alliances while encouraging old enemies of the once discounted Marxist bloc to re-establish new alliances to counteract our hegemony.

A deflationary decline and depression this time would not be another Ma and Pa Kettle version of The Grapes of Wrath  with Americans pulling together in every corner of the nation and living off of the resources of the land. The technocrats who have distributed our bounty and manufacturing capabilities world wide have seen to that outcome being null and void. The ideal by these theoretical heretics who figured that giving America’s dominance in economic affairs to our friends and enemies alike to maintain world peace and allow economic expansion to defeat the natural business cycle now comes with a price. When the fraud the government and Federal Reserve foisted on the world in 1973 with Nixon’s closing of the gold window allowed the acceptance that our paper was as good as gold and we would never issue a fiat currency scheme that was inflationary nor manipulative (heaven forbid), some who studied economics for decades realized the risk that would be taken with our future.

That future is now.

After thirty-five years of irresponsible economic policy by our government and the associated managers of the economy, the Federal Reserve, the failure to maintain a stable currency along with an inability to control the urge to spend money on any project or concept that lines the Imperial Senate’s pockets will have a major consequence. The full faith and credit ideal is about to see just how much faith the world has in our leadership and how much more credit they are willing to extend.

Thus the most dangerous idea, a deflationary unwind, might carry much more risk than the banking class is ready to endure. The societal instability it would create in America’s major cities is something the political class will not stand for, thus creating the final and over due conflict between the neo-capitalist class and the quasi-socialist elected officials. The instability this conflict is going to create as we migrate from a post-1970’s inflationary solution to a Franco-Chinese hybrid socialist-corporatist model will last at least one decade.

Japan experienced the “Lost Decade” as their never ending recession thanks to corporate fraud and government deceit destroyed the model Americans were told we should emulate. Then the Chinese who were willing to sacrifice everything for a better life, mainly because if they did not they could be shot, adopted a modified corporatist model where the political elite retained ultimate control via the fixed bayonet.

Thanks to the “We are the World” bunch and their perverted globalist economic theories, America will now have to restructure its entire economic model, configure a solution to replace a rapidly aging workforce, create a new economic growth model under government supervision, and fight off societal instability all while facing a revival of Marxism thanks to the re-emergence of Latin American classical revolutionary movements and the Russian Bear. The largest obstacle to our future, besides millions of furious and soon to be bankrupt retirees and investors who will open their statements and see “$0.00″ or worse “X,000,000,000,000,000.00″ like they do it in Rhodesia proper (Zimbabwe for the politically correct), will be the regionalized instability an American collapse will create. When, not if, we fall into a depression death spiral our neighbors to the south will probably have to deal with a full blown Civil War. This means our border states and those states with large “immigrant” and “illegal immigrant” populations will be directly or indirectly involved in the fighting.

Think I’m crazy? Think again. The vacuum created when a nation’s economic system collapses is one thing; when an Empire’s system collapses the void brings forth destructive forces that have been bubbling for years as the masses within the imperial borders enjoyed bread and circus, all the while dismissing problems in other nations as regionalized issues of little concern. The only logical outcome will be the one imposed by the political class to declare direct oversight of every aspect of our financial system and the liquidation of another U.S. Central Bank, the Federal Reserve, and the creation of some sort of modified European Union type regional banking system with direct political control of every aspect of its function and scope. The prospects of losing that type of control could motivate the Federal Reserve to begin monetizing the debts to prevent such an evolution in thinking, especially if a leftist regime seizes power in D.C., a given should economic conditions continue to accelerate over the next fifty something days.

Although I fear the risk of a deflationary depression does exist, the actual demand on raw commodities worldwide due to basic demographics in addition to the risk of major domestic and regional instability will ultimately lead to the Great Reflation which will lead to a monetization of debts and corporate structured instruments in an effort to buy more time and implement greater societal changes. In the eyes of the powers controlling our banking system, ten years of little or no economic expansion is a much more palatable outcome than to having their system replaced with a new financial and economic management model. The prospect of maintaining some leverage or control of the system’s future in cooperation with a new political regime is far more acceptable than losing a century of control. Power sharing and negotiation is the key thing to watch for and the one thing all of us will have to monitor to get some clue as to just how great a currency devaluation and redesign will be endeavored upon.

The people will be willing to tolerate a revision of our society’s structure or sacrifice of freedoms to maintain the illusion of wealth and security. That is the sad statement of fact that our  Founding Fathers worried about when an undisciplined people elected scoundrels to office and bandits to run their finances. The only hope for our society now is that enough people will prepare themselves financially and spiritually to endure the hard times and take a leadership role to rebuild our system devoid of Lenin’s ideals and conniving leaders like Senator Nelson Aldrich. There will be a purge one day, but for now, the creators, the producers should consider the idea that the time to go on strike is near.

Just as the namesake of this editorial articulated in Atlas Shrugged.

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Death Of A Nation Gives Rise To A New Tyranny

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Excellent essay by our friend John Galt follows. Having abandoned our foundational principles and intents, the consequences of crisis always has the suffering masses grasping whatever promises of salvation come, leading to a birth of something far worse that what they have suffered.

BIRTH OF A NATION

By John Galt

March 31, 2008

I. Intent

The Founding Fathers had a vision where individuals were allowed to use their God given freedoms to use their own creativity, their own belief systems, and their own talents to work within a Capitalist system based on the principle of freedom. This freedom extended to all aspects to each and every citizen of American life as long as it did not impair or impede on other individuals or the greater good of this nation. These freedoms and the vision our Founding Fathers had for us are now coming to a close. The abdication of the ideal known as “personal responsibility” and the application of morality in everyone’s decision making process have been delivered a fatal blow first struck some ninety-five years ago. The creation of the Federal Reserve Banking system at the behest of political idealists who wished to manage the social fabric of society as opposed to their Constitutionally mandated responsibilities were just the beginning. The series of legislative initiatives undertaken from 1910 to 1940 to complete reshape our nation under the guise of “Progressivism” was slow to come about, but it was not until this decade and the final crisis of our foolish endeavors in societal management that we shall realize the implications of that generation’s actions. Their intent was to create a system of macro economic management by government which allowed the banking system to function outside of the legal parameters of the Constitution while profiting the few and penalizing the majority for any mistakes that were made. As decades of erroneous decisions have piled up and multiplied exponentially the proverbial bill is now past due. How appropriate that a nation founded in the idealism of personal responsibility and freedom shall now depart from that path and begin a final curtain call which entails the incorporation of a vile system of Marxist theory in combination with the perversion of religion to justify the revision of our society and the behavior of it’s citizens.

II. Taxation Without Representation

In the 1770’s part our nation’s foundation was laid with the purpose of eliminating tyrannical leaders who impose their will without the voice of the people. The taxation of citizens to serve a “crown” was considered a barbaric relic of medieval times as serfdom was no longer accepted by “modern” society. Alas, if only old Ben Franklin could see us now. The average schmuck has been quite content for decades to accept taxation without realizing they are being taxed as it has been given the false perception of the “cost of a free society” and other such rot. Although my personal principles are somewhat Libertarian in nature, this does not mean I am advocating naked women running up and down the streets as whores like Amsterdam promotes, nor the elimination of some of the Constitutionally mandated operations of government and it’s interaction with the private citizen. Obviously it costs money to maintain the national defense, a sound judicial system and to secure a safe, consistent and fair flow of commerce. Yet the responsibilities assumed have now spread to every aspect of our lives, including and up to the examination of the sexual behavior of flies as well as the willingness or ability of each citizen to educate their children in a manner (or religious principle) that they see fit. Alas, to become a “nanny state” costs considerably more than just the income tax structure we have in place now. So what is our poor government to do?

After the 1916 income tax solution opened the door, the U.S. government and it’s minions started looking for other taxation solutions to insure that the American people were married to their ideals through the concept of entitlements. That solution did not really take hold until the Great Depression created a nation of sheep willing to accept whatever solutions were provided to insure that the average citizen always had a roof over their head, a meal, a job, a car, a Playstation III, a vacation in Cancun, etc., etc. As the real levels of taxation on corporations (who just pass it on to the customer) and citizens skyrocketed via income taxes, fees, etc. the stress on government has become so great that running a debt on an annualized basis became commonplace and once the banksters and the government figured out that the U.S. was “too big to fail” and that the average citizen would rather be fat, dumb and happy rather than worry about the consequences of their actions, the game was on.

The spending on everything and anything was acceptable and by manipulating the accounting regulations the Congress and Senate could cut deals, make huge profits for themselves via the lobbying system, and create a dependency class that could be further expanded as long as the banksters played along by assuring the public that the integrity of our markets would never be unscathed and unending sources of profit and liquidity would be available as long as everyone played along and didn’t bother to look behind the curtain. Unfortunately for the elitists, people began to peek and worse, people began to worry as the liabilities of this nation were at a staggering $20,000,000,000,000 plus in 2000 and has more than doubled to a blow-one’s-brains-out-if-you-think-about-it-too-much $53,000,000,000,000 plus now. To maintain the ability to service this debt load, much less meet the underlying obligations, the impossible task of maintaining a seven to ten percent annual GDP (oh no, GNP wasn’t good enough, it didn’t track consumer spending enough) was thrust upon the markets and with the help of our friendly neighborhood central bankster, went to work to achieve it. Add in the smoke and mirror arrangement constructed by the Federal Reserve and you can see how this is not going to have a happy ending.

So who is taxing the American citizenry that does not have the authority to do so you may ask? That requires a quick and dirty analysis of our currency and the $53 trillion (it’s too much work to type all those zeroes more than once) in debt and liabilities we now are beholden to. Since the creation of the Federal Reserve in 1913, our dollar has experienced a depreciation of about 97% from its original value. We have changed the constitutionally mandated method of issuing currency in this nation without an amendment as intended by our founding fathers. Doubt that? Well here are the exact words from our Constitution:

Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.

We have witnessed the abdication of personal responsibility in favor or servitude to the state. In this writer’s opinion, it would be fair to the currency depreciation a somewhat inflationary tax levied upon our society as well as a moral hazard. But now look at the level of debt and obligations and start thinking about that from the big picture perspective. The only way to pay off or maintain the spending levels and debt we have incurred is to monetize the debt and at a rapid pace before the rest of the world does the job of peeking behind the curtain which the American citizens refuse to do for whatever reason. Bad news Sparky; the rest of the world has taken that peek and figured out a few things:

1. The Federal Reserve has never been audited

2. The Federal Reserve has no legal liability to the customers it serves, a.k.a. the American Public

3. The Federal Reserve is a private corporation using policy to generate or promote monetary growth via it’s Treasury proxy. These policies often impact the consumer by destroying savings and increasing the inflation tax.

4. The Federal Reserve serves only the investors who own that bank, not the nation.

Where as many nations have a central banking system directly accountable to legislative branch or powers restricted to the protection of the integrity of their currencies, the Federal Reserve has assumed the role of an un-elected oligarchy, which will ultimately destroy our freedoms and our nation. They are imposing an inflation tax and increasing the rate of destruction of our currency without the authority of the Constitution behind them and worse, at the expense of our citizenry to pay for decades of ignorant bliss as the party went on unimpeded. Now the bill is due and the tax rate is about to be increased dramatically as the casino on Wall Street has made so many bad bets, it requires the house to bail the players out or risk the destruction of the entire world’s financial system. This is not minor threat, but worse, it enables a far more devious threat to emerge.

III. 1914

So what do we have to look forward to? To get some idea, let’s take a look back into history. When Europe erupted into war in 1914, ironically enough due to an act of Islamic terrorism, the United States was caught in the middle as a neutral observer. The Federal Reserve was not a functioning entity, thanks to political delays, when the war started but the U.S. Treasury and its idealistic President were ready. Instead of allowing foreigners to sell off their holdings in the American markets, the solution was simple:

Close them.

That was a dangerous game but thanks to the currency provisions of the Alrdich-Vreeland Act the domestic banking system was able to avoid a repeat of 1907 and the currency crunch and uncertainty that would ensue from having our financial markets closed. This same approach could easily be employed again today. If there is a notable or sudden liquidation of our Treasury paper or equities by foreign powers along with a sudden flight of capital from our banks the easiest solution is not to just have the Federal Reserve purchase the paper, as that would require an unrealistic sudden increase in the money supply. The gradualist approach to monetization would have to be tossed out the window causing a larger problem at a sooner point in time. That alternative is unacceptable but still on the table but could appropriately be called the “nuclear option” as it would be the hyperinflationary trigger. The short term option is obvious and it is the 1914 option. That would enable the U.S. government to save face and still maintain some faith in the stability of our economy while stopping a deflationary outflow of capital that would cause an immediate collapse of our economy. Closing the markets in the name of free market capitalism (ironic isn’t it?) is the only logical solution and whatever excuse is offered as “cover” for such an action may sound drastic, but for a short term cessation of bleeding, the only reasonable course of action. How does such an action lead to a change in our nation and just what are the consequences? Read on my friends, as this is where a new nation is born.

IV. DEATH OF A NATION

To create a new ideal, the old one must die. The concept of America must die. There are and always have been tinkering old fools who have felt that they could “adjust” or redesign America better than the founding fathers. The aristocracy of old was greatly displeased with the balance struck in the United States Constitution but this balance served the purpose of allowing their class to excel in their goals while giving the average person to succeed without the yoke of government being worn about their necks. As the participants of and investors in the modern Fiatocracy see their empire begin to flounder, the plans to revise and redesign this nation are right there in front of us, but thanks to the conspiracy theory principle, it is dismissed as unrealistic and absurd. Despite the fact that grown men dressing up in robes and burning humans in effigy in the mouth of a burning owl has been well documented and confirmed, that does not seem to strike the sheeple as critical to our future. Yet as this writer types this, these same individuals have ownership in the Federal Reserve, ownership of some of our largest financial and corporate institutions, or meet now behind closed doors to discuss the “rumored but documented” NAFTA superhighway as they are able to work in the open without scrutiny and without the authority allegedly given to the citizens of this nation in the Constitution. This is not a good sign and indicates that our nation is well on its way to passing into history as a memory.

The ability to create any new ideals or “modifications” as they shall be called, to our current system requires a breaking point, or death of the nation. There are two methods to achieve this goal and either might be acceptable but one is obviously much more practical. The first method is simply to involve a nation in an idealistic but costly war which slaughters millions of it’s citizens thus reducing the economic needs and re-balancing the supply demand curve in favor of the profiteers and political class where the numbers are much more manageable. This method is of course costly and if carried to extreme in this modern society, the physical damage to actual attacks on the homeland could put the power elite into the same risk strata as the citizens they wish to enslave. The second and most obvious solution is to bankrupt the people, not just the nation. Eliminate the financial capacity of a citizenry to survive and you own them. In the days of yore, the monarchy would simply offer an opportunity to survive by allowing the serfs to live on the land in exchange for the offerings a large percentage of the crops leaving the serfs just enough to survive. This virtual enslavement allowed one class to survive while another prospers. And this lesson in population and economic management has never been lost on the elites in society.

V. BIRTH OF A NATION

With the plan currently being enacted, the question becomes “What kind of nation will we look like in 20 years?” I fear we could become as drastic a head case as the 1970’s Soviet Union or worse a perpetual model of France combined with the ethnic problems of the Balkans. The withdrawal of the needle from the arm of America via the long-term extraction of capital infusion from foreign powers will leave our standard of living flailing at best and careening into levels unseen in this nation in over one hundred and fifty years if we are lucky. The inability of our society to pay its debt off at all levels and work towards self-sufficiency will create the grand political opportunity that only arrives in history maybe once every two or three centuries. This political opportunity or “third way” as it so often promoted will unfortunately allow the elitists to explode on to the scene denigrating the primitive nature and thought processes of our founding fathers and in the desperation of the moment, the citizenry will bleat right into an automatic acceptance of the changes as a “savior” of their society and the classes of people unable to cope with cyclical economic change. The new Socialism will neither call itself that nor ever openly use the terminology of the works of Marx or Lenin. The test case for this ideology is well under way in the form of Communist China attempting a mix of corporatism, communism and fascism while maintaining the illusion of free market capitalism. The theory that has been promoted over and over again by multinationals and our socialist infested State Department is that “free market capitalism promotes democracy” but in Communist China, it promotes enslavement. There are no free elections there nor truly free markets. There is no desire to allow open competition for the development of and expansion of goods and services without some degree of state control. The profits are guaranteed to insure a large percentage of funds to be allocated to increasing the ability of the military class to expand and dominate the region and the society as a whole. In the case of the United States, the military dominance is unquestioned, but the thumb of the political class does not have the reach of the Central Committee in Beijing yet. By allowing the crisis to worsen or better yet, accelerating the impacts of such a crash, much like what was accomplished in the 1930’s under FDR, the birth of a new nation can be completed under the demands of the very people who are to be enslaved. With so much of our population now dependent on government largesse, this process will be frighteningly easy to achieve.

VI. OH AUGUSTUS, WHERE ART THOU?

There is but one hope and believe it or not it is in the mirror. Go look at it. And pray hard for a miracle. In Roman times after the period of the Civil Wars, there was a desire that such a great empire, militarily over-extended and rooted in democratic principles would end their infighting and bring stability back to their people at home. The citizens hoped a return to a virtuous democratic society would win out over the old ways. When Emperor Augustus took power in 31 BC, it enabled a period of relative stability and economic growth to ensue. The Empire of Rome became unified, formidable and expansive once again without the drag of the Republic’s pesky democratic principles. Unfortunately it created a new fascistic monarchy, which demonstrated its brutality and ability to dominate its citizenry and neighbors on a regular basis. It is this writer’s fear that while history may not repeat; the duplication of human foolishness will allow this to occur again. We must, as a society, pray that as the Third Way takes hold over our society that someone will take a stand against the elimination of the U.S. Constitution and the ideals of Jefferson and Hamilton. That someone will have to be a person of considerable power on the inside and willing to wear the Judas label and betray the new elite when and if they make their move. Let us hope this is a man or woman of principle and does not have a sale price like much of our society. Let us pray this happens before the title “Imperator” becomes part of our lexicon, much like the phrase novus ordo has already been accepted, denied and ignored by the masses. The consequences of failing to stop this “new order” from taking hold, as seen in history, will be fatal.

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