“You get a big enough failure somewhere and you’ll see the entire system close within 48 hours.” – Bill Holter
The quote above comes at approximately the 18:20 minute mark in the wide-ranging interview below where Dave from X22 Report is joined by finanical writer Bill Holter of JS MineSet as they discuss the current news economic news which includes quite a few bombshells indicating to Holter that “This is the end game,” stating the “these are the end days of the current system,” and that he is “not so sure we are going to get to October” before the entire system closes.
Dave and Bill start off talking about the recent Deutsche Bank settlement where for the first time it is admitted that they and other institutions have been deliberately manipulating Gold and Silver markets, as well as basically turning states evidence and agreeing to name others that have been doing the same thing, as Holter details exactly what this means in the overall scheme of things.
Via Sputnik News:
Remarkably, on April 14 Deutsche Bank admitted the fact that it had been involved in the conspiracy together with other members of a “cartel” and agreed to name the names in the US federal court.
The do return to the issue of precious metals later in the interview as Holter explains, in terms those of us that are not financial gurus can easily understand, the importance that gold and silver are going to play once the current economic system collapses around us and specifically what it means for every American holding on to the dollar.
Before that, Holter speaks about the stock market manipulation, global economies including the U.S. softening, and highlighting the recent threat by the Saudi’s where they said if the U.S. releases the 28 pages of the 9/11 report that allegedly implicates them in the September 11, 2001 terrorist attack in America, they would dump $750 billion in U.S. assets.
Holter states that what the Saudis are saying is the “Petro-Dollar is dead” and the Saudis will no longer use it for oil, stating that other countries will follow suit, leading to the full collapse of the dollar.
Another point specifically detailed in the interview below is the Fed emergency meetings held by the White House, which Holter believes stems from not only the topics discussed above, but included what emergency steps could be taken from keeping the “time bomb” from blowing up.
The topic turns to the retail GDP, corporate earning reports and how they don’t look good and when Holter is asked “what the Fed can do” he responds “nothing the Fed can do… but print.” Holter continues on to say “Low rates, negative rates and print, print, print,” before explaining that “The Fed cannot support the dollar” any longer.
This is where we get to the highlighted quote at the top of this article, when Dave wonders if the system will last until October and Holter states he is “not so sure we are going to get to October,” as he adds, a failure, a “big enough failure somewhere and you’ll see the entire system close within 48 hours.”
Holter then explains the difference between real money versus fake money, stating the fiat currenncy, whether the Dollar, Euro or Pound is fake, nothing backing it while precious metals he described as real, stating “real capital” that takes “real labor and real machinery” to dig gold and silver out of the ground, while paper money costs nothing, just a keystroke to continue printing, which he calls worthless.
International Currencies Increasingly Rejected in the Face of Inflation
Currency collapse is hardly something new. Especially when that currency is backed by nothing. In G. Edward Griffin’s seminal work, The Creature From Jekyll Island, he states that once the “business of banking” by fiat began:
This led immediately to what would become an almost unbroken record from then to the present: a record of inflation, booms and busts, suspension of payments, bank failures, repudiation of currencies, and recurring spasms o economic chaos. (pg. 184)
Since this story of banking is so oft-repeated, there are also a fair number of examples of how prosperity — or at least stability and self-sufficiency — was restored afterward. In nearly every case, it came from desperate, but determined individuals who shrugged off the shackles of central banking, and either returned to the currency they used previous to government hijacking, restored pre-money barter systems, or created something entirely new.
The modern-day, planet-wide collapse of fiat currencies is providing additional real-time examples of how forsaken citizens are taking matters into their own hands. Let us look at just the two most affected: Greece and Spain.
It is a travesty that the nation where democracy and gold-backed coinage was first developed should become the poster child of a whirling black hole of debt and dependency brought on by autocratic rule. Regardless, despite the austerity riots filling city streets to make demands, there are indications that some communities are finished with demanding anything from a provably corrupt government that is literally foreign to their best interests.
The video below illustrates the rebirth of diverse means of exchange such as time banks, barter networks, barter currency, and “priceless” commodities in Greece:
The Daily Mail reports on a town of 3,000 called Villamayor de Santiago, where “rebellious” locals have reintroduced the peseta in a project to thwart the failing euro after inflation has driven up the price of essential goods 43 per cent. The cost of bread is up by 49 per cent, milk 48 per cent, and the price of potatoes is up 116 per cent. All while a third of this small town is out of work.
Around 30 shops in the historic town, 75 miles south-east of Madrid, started accepting pesetas last month after urging customers to dig out any old notes and coins they had forgotten about.
News quickly spread, and shoppers from neighbouring villages and towns have been flocking there to spend the old currency.
After a one-month field test, the enthusiasm for the plan has ensured its renewal. Meanwhile, four other Spanish towns have reintroduced the peseta, as the country goes through an employment crisis worse than that of Greece, and the country’s credit rating has been knocked down another two notches.
The two modern examples of Greece and Spain, echo America’s own colonial history. Following China, America was the second location in the world to test fiat currency at the behest of the British Empire. The story is fully recounted in Chapter 8 of The Creature From Jekyll Island and is well worth a full read, but the salient point is that once colonists were repeatedly subjected to hyperinflation and depression through the overprinting of money, as well as having been subjected to broken promises and tyrannical rule by the Bank of England through the removal of coins, barter became a means of exchange and survival. Tobacco was the first commodity, but nearly anything of intrinsic value served equally well in restoring a semblance of power to individuals as a means for their self-determination.
Later, the colonists who disobeyed government dictates brought out their limited supplies of hoarded coins and re-built from the ground up using sound economic principles. Those colonies which used sound money, such as Massachusetts, won trade from fiat-money colonies like Rhode Island.
As Griffin states:
After the colonies had returned to coin, prices quickly found their natural equilibrium and then stayed at that point, even during the Seven Years War and the disruption of trade that occurred immediately prior to the Revolution. There is no better example of the fact that economic systems in distress can and do recover rapidly if government does not interfere with the natural healing process. (pg. 160)
And Ben Franklin proclaimed that King George III taking away the ability of the colonies to create their own currency was the true reason for the Revolutionary War:
The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction. The inability of colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the prime reason for the Revolutionary War.
And this is the good news: what’s old seems to be new again; citizens within collapsed economies are once again turning their backs on centralized international government, ignoring their unjust policies, and instead are returning to the far simpler and more logical means of self-sufficiency and prosperity — their own inherent community strength built upon real production and trade between individuals. In short, decentralization.
Americans would do well not to forget that the actions taken by individuals in other severely collapsed countries are those also entrenched in America’s history. Let us all observe closely, then, how the first dominoes that have fallen in the latest cycle of depression are choosing to right themselves; for it would be at our peril to ignore history, and the momentum that already has pushed others toward the same foregone conclusion.
Our forgetfulness is perhaps the root cause of our repeated inability to sustain ourselves, until another collapse scenario forces us to take action.
For an instructive case study in the risks imposed on nations by international banking interests, as well as how anyone can survive the inevitable aftermath, please view the story of Argentina below:
George Washington, our nation’s first president and leader of the American Revolution…
Abe Lincoln, who led the North through the Civil War…
Alexander Hamilton, founding father, first Secretary of the Treasury and leader of the constitutional convention…
Andrew Jackson – “Old Hickory” – fought the British in New Orleans…
When the newly-formed United States of America first minted early coinage, it was Miss Liberty (sometimes referred to as a goddess of liberty in early numismatic writings) whose portrait appeared on coins. The American Eagle usually appeared on the reverse. It wasn’t until 1909, the 100th anniversary of Abraham Lincoln’s birth, that a (dead) president was first featured on U.S. coinage. Intended to be a special commemorative, the Lincoln Cent proved so popular that it endures to this day! Other dead presidents soon followed, and we are all familiar with the Jefferson Nickel, Roosevelt Dime, Washington Quarter, etc.
It is federal law that no living man or woman can appear on U.S. coinage. Presidents must be dead for at least two years before they are eligible for inclusion in the Presidential Dollar series.
Ulysses Grant, Union North army general in the Civil War…
Ben Franklin, genius inventor, political theorist and leading author of the Constitution…
Finally, we have someone to put on the food stamp…
Venezuelan President Hugo Chavez ordered his government to repatriate $11 billion in gold held in banks abroad to safeguard the country from the economic crisis and said he’ll nationalize the local gold industry. Venezuela has about 211 tons of its 365 tons of gold reserves held abroad at institutions including the Bank of England, JP Morgan Chase & Co. (JPM), Barclays Plc (BARC), Standard Chartered Plc (STAN) and the Bank of Nova Scotia (BNS), according to a government document. … Chavez, who has said he wants to eliminate the “dictatorship” of the U.S. dollar, has called on Venezuela’s central bank to diversify its $28.7 billion in reserves away from U.S. institutions. – Bloomberg
Dominant Social Theme: The government knows best how to manage the money supply; Chavez will lead the way.
Free-Market Analysis: Whoa! Hold the US dollar horses, folks… the global reserve currency game just got a whole lot more interesting. There is, in our humble opinion, a whole lot more to this story than just the repatriation of gold being held at foreign central and commercial banks. It is perhaps the biggest story to unfold in the currency markets in many years.
One thing everyone with an inkling of monetary knowledge is familiar with is that central banks’ monopoly over the issuance of fiat currency is a destructive process of wealth redistribution – ultimately enslaving nations under a perpetual sea of debt. International money power ends up controlling the targeted nations’ media, government (including the courts) and, via mercantilist corporate activities, its natural resources and productive capacity.
Now, the global currency that has acted as the world’s de facto reserve currency is the US dollar. But that is changing. The dollar is dying. In fact, we think it is already dead… we just haven’t had the funeral yet. But wait… what Chavez has just done is fire a major shot over the bow of the Federal Reserve and we think this could possibly be the death blow to the US dollar. Here’s why…
For astute observers of recent history, we have seen what happens when people like Saddam Hussein or Libya’s Muammar Gaddafi threaten to create gold backed currencies or international trade (in particular, oil) that could be settled not in US dollars – but gold. These people have very short life expectancies, to say the least.
The Holy Grail of international central banking and its major building blocks, of which the US dollar is most certainly at the focal point, will be protected at all costs. Bloodshed and human lives are meaningless in the game of global power consolidation, which is only possible as long as the money masters controlling the world’s pillars of power are able to create money out of nothing and grant themselves the “legal” license to do that.
Ultimately the plan is to merge, out of the global financial crises, the various major currency building blocks, such as the US dollar and the euro, into one global currency. This merged currency will likely be issued by the Bank for International Settlements and managed by the International Monetary Fund and the World Bank – all non-elected international edifices that stand under the umbrella of the United Nations.
Now, as we have seen in the past, it is usually a death sentence for anyone who departs company with the central bankers and their global US dollar based Ponzi scheme. NATO and the US military-industrial complex are quick to act on CIA reports or other such propaganda that the ever-willing mainstream media enthusiastically trumpet to get the mass voters emotionally charged around some side-car fabricated issue that justifies immediate force be taken. Of course, the real issue of fiat money is not to be discussed at all, for that could lead to people questioning the legitimacy of the Federal Reserve System, which cannot stand up to an honest evaluation.
Today the Internet Reformation is quickly advancing the public’s understanding of what money is and what it is not – at least historically speaking. People are starting to see that the money stuff in their wallets is nothing more than a promise to pay – a debt. But a debt to whom? And how do the money lenders collect on the debts? Where did they get the money from in the first place to “lend” to the citizens?
The entire system is a rigged game of deceit whereby the money magicians at the Federal Reserve have been granted license by the US government to “create money out of thin air.” The US Constitution has been totally ignored and the Anglosphere power elite that took control of the US government following the American Civil War have been printing themselves into control over US-based assets and enslaving its population in debt and an eternal “time tax” ever since.
Granted, it didn’t happen overnight. It took time to subvert the Constitution and install a central bank. The public needed to be in fear of the private market. JP Morgan, acting on behalf of the Rothschilds and others, served their purposes well. G. Edward Griffin has pointed out in his monumental analysis of the true origins of the Federal Reserve Act that it was a shameless deceit intended to pass the key to siphoning off America’s growth and productivity back to the Anglosphere elite about whom the Founding Fathers issued many warnings, and against which the Constitution and the Bill of Rights were supposed to protect.
Now here we are, some 100 years into the Federal Reserve’s existence and accompanying money manipulation, and money power is facing its greatest challenge from an information medium originally intended to grant greater visibility of “subjects'” activities. Instead, the medium is providing the very impetus that is undoubtedly creating major problems for the short-term implementation of a global super fiat-currency.
Although we agree that the crises sweeping the world’s money marts today do play into the “out of chaos… order” scenario, what doesn’t play into that are leaders of nations going their own direction – especially if the road they’re taking is built on a currency that has any relationship to a gold backing.
As stated above, NATO and the US military-industrial complex will handle the dirty work of eliminating such threats, should they arise. And here we have the little dictator from Venezuela coming along and demanding the repatriation of his country’s gold from the Bank of England at that. This is really not going to go over very well with the powers that be, to say the least.
For it is not simply the fact that Chavez has decided to “bring home the gold” that is of interest here, but the question of why. And herein lies the “golden answer” …
Several months ago, one of our elves, along with an esteemed free-market economist, drafted a proposal that laid out a detailed process by which a nation rich in gold and exports (in this case, oil) could create a dual currency platform – one of which was based on gold. Now, it is important to note that this is not the ideal situation, though it is a step in the right direction, for a gold-backed currency to evolve, should it prove the winner in a free-market currency competition as we believe it would. Ultimately, we believe governments should not be involved in the issuance of money at all.
Having said that, the proposed plan was circulated to government officials within countries that have in place the following dynamics: domestic gold production, a viable export market, and a government that isn’t under the control of Western money power. Further, the leaders of the country must be willing to face an international backlash of immense magnitude in order to embark on executing such a plan. In the case of Chavez he certainly doesn’t seem to care too much what the US government has to say.
Now, back to the currency war implication running beneath the surface of today’s announcement. There is another consideration. How long will it be before the other socialist-leaning governments in South America decide to follow Chavez’s lead? We think Ecuador, Bolivia and Peru are all very strong candidates – especially now that the US dollar is devaluing at such a rapid pace. All it takes for this Ponzi scheme to unravel is a blowback of demand and someone to trigger that event on the international markets. … Enter Chavez.
The international oil-game has long been a significant piece to maintaining dollar dominance. Having nations go their own way and seek alternative means to settling that trade would be devastating to the dollar. Once again, neither Iraq nor Libya will see that happen – at least not now. Will Chavez get away with this plan? Or will he face a newfound Western attack unleashed, already in place to unfold when needed?
Will Colombia be recruited to frontline the operation? After all, that country is ripe to launch a gold backing for its currency, but cannot. It receives simply too much monetary aid from the US taxpayers to fight its “war on drugs.” Alternatively, perhaps this whole Colombian war on drugs has beem more about the US maintaining a power base from which to bring force, if necessary, within the region.
The other component to the demise of the dollar is a reflection of the awakening of Americans themselves. Regular moms and pops are listening to the likes of Ron Paul – despite mainstream media’s attempts to marginalize (and even make invisible) his platform – and these newly attentive Americans are transferring out of the dollar. The Internet, as we have long proclaimed, is a transformative process that brings truth and understanding to the living rooms of all those who wish to understand how the current system works and why it is so parasitically destructive.
People are tired of the bankers’ bailouts. They are disgusted by the endless reams of lies that spew forth from their elected officials, all of whom are bought and paid for by international money power. People are tired of the barrage of mainstream propaganda attacking their every sense.
Conclusion: While we certainly do not endorse Chavez’s style of government, today’s announcement by Chavez is, in our opinion, important. It appears to be a step towards the implementation of a gold-backed currency in Venezuela. Will it operate as a domestic currency inside Venezuela only – one in which citizens may hold wealth while their fiat-currency continues to be spent abroad? Too early to tell. But something will likely spring forth over the coming months that threatens to further empower the destructive force of Hurricane Reality and the civil chaos that will likely erupt in its wake. Ironically, it is the dictator’s own words that sound like the tolling bell of an international currency war, “…he wants to eliminate the ‘dictatorship’ of the U.S. dollar.”
At the time of publishing this report, gold is again hitting all-time highs – trading above US$1825 per ounce.
Editor’s note: Chavez also announced that he was nationalizing the country’s mining industry, clearly not a plan we endorse. It makes no sense for many reasons. Since that is not the principal thrust of this article we will leave opining on that issue to others, except to say this: If Chavez wants to maintain the gold in order to underpin Venezuela’s currency then so be it. He would be much wiser, however, to allow private market competition to develop the potential of Venezuela’s gold industry – a highly speculative and costly endeavor to say the least – and to retain first right of refusal to buy any gold produced within Venezuela by foreign interests. Of course, the price paid would need to be at international market prices, but so what? Venezuela has tremendous oil exports that can continue to be priced in dollars and the international mining companies could swap their gold production for the paper dollars. The international miners all practice this ridiculous policy anyway, rather than keeping the gold to underpin the value of their shares. However, Chavez has decided to simply nationalize the gold industry, a move that will surely not bring about a robust gold producing scenario for Venezuela.
Extreme Couponing: Desperate Economic Times Call For Desperate Measures
Even in the midst of a horrific economic decline, there are tools that all of us can use to make the most of our limited resources. This includes doing some things that many of us never imagined that we would do. A couple of months ago I never would have imagined that I would be doing an article on coupons. But in these desperate economic times you have to look for any economic edge that you can get. Did you know that it is possible to get $500 worth of groceries for less than 10 dollars? I didn’t know that either until I started watching a show called “Extreme Couponing” on cable television. I was amazed as I watched person after person get over 95 percent off on their groceries. Personally, I have always thought that clipping coupons was a waste of time. Sure, you might save a few bucks, but I really didn’t think it was worth the time or the effort. Well, my opinion has changed. There are a growing number of people out there that are using coupons to provide all of the groceries that their families need almost for free. In an economic environment where incomes are going down but food prices continue to go up, “extreme couponing” is a financial weapon that virtually anyone can use.
Yes, not everyone can take it to the extent that many of these “extreme couponers” do. There are some women that spend 40, 50 or even 60 hours a week on their couponing. Most people cannot afford to do that.
But even if you just spend a couple of hours a week you can still save significant money. At a time when many family budgets are tighter than ever, saving 50 or 100 bucks at the grocery store can mean a world of difference.
Not only that, but “extreme couponing” is a great way to build up your stockpile of emergency food. Everyone should have enough food in their homes to feed their families for at least a year. Unfortunately, many people don’t have that kind of money. That is where “extreme couponing” comes in.
If you are willing to put a little hard work in, you can build a stockpile of emergency food for pennies on the dollar.
Extreme couponing is not complicated and thanks to the new TLC show it is becoming extremely popular. The following is how a recent article on MSNBC describes these “extreme couponers“….
Hard-core couponers are in it to win it — for free, if at all humanly possible. They plot their grocery-store trips with the precision of military commanders. They load up three or four shopping carts at a time. They test the mettle — and the congeniality — of cashiers by having them tally dozens of discounts on their behalf.
And what do they get in exchange? Hundreds of dollars’ worth of merchandise for as little as $5 to $10, the applause of onlookers — and a surge of adrenaline that can be downright addicting.
If you have never seen the show, you should check it out at least once. The following is a very brief preview of “Extreme Couponing”….
Yes, people are actually doing this. In fact, some of my readers are actually doing this.
In the last six months, I have seen a complete attitude adjustment in many of our friends and family. As a result, a resource sharing group has formed amongst us. We share work, ideas and tips on everything from budgeting to gardening. All of us have curtailed the “luxuries” like gym memberships, expensive clothing, latte’s and mochas from those expensive little stops on the way to work, dining at restaurants, first run movies at the theater, and a myriad of other little things.
Our latest discovery is the world of couponing. Anyone interested in dramatically cutting their household and grocery expenses should take a serious look at TheKrazyCouponLady.com and read their book, Pick Another Checkout Lane, Honey. I never understood how couponing could make a difference until I read this book. Our group now looks at coupons almost as a tax free source of income, because it is saving us hundreds of dollars a month…no exaggeration.
I admit, I am not as diligent as the others about using coupons, but even with my minimal efforts I saved 60% on my meat purchases last month. That was huge for my family of 6. Our home is out in the country near a rural community, and the only grocery store in town is Safeway. I never shopped there before, because it was too expensive. I drove into the big city once every three months to do our grocery shopping at the “discount” stores. Now, using coupons on sale items, I can shop at the local Safeway and save more money on food and gas.
Sadly, this extreme couponing phenomenon will not be around forever. As thousands more pile on to the bandwagon, it is inevitable that food producers and retailers will start changing the rules. So take advantage of extreme couponing while you can.
Look, I never imagined that I would be recommending that people should start clipping coupons. But when any of us are presented with solid evidence that we are wrong about something, we need to be willing to change.
Personally, I am not an expert on coupons.
Thankfully, there are some people out there that are, and they have shared their knowledge for free on the Internet. The following are some of the best extreme couponing sites around if you are interested in learning more….
People are always urging me to write more about solutions. Well, extreme couponing is a solution. A lot of us men might not like the idea of “extreme couponing” because it may not seem like a very “manly” thing to do, but the truth is that it works. In these desperate economic times, you have got to do what you have got to do. Today, one out of every four American children is on food stamps. An increasing number of children are falling into poverty. If it takes clipping coupons in order to survive, then that is just what we are going to have to do.
As mentioned above, all of this exposure on television is going to mean that “extreme couponing” is not going to be around forever. When too many people start jumping on a boat it is inevitable that it is going to sink.
But while this tool still exists, why not use it?
In particular, this is a great way to build up your emergency food stockpile for a fraction of the cost.
So what do all of you think about extreme couponing? Do you think it is a good tool? Do you have other tools that you would suggest for saving money in this tough economy? Feel free to leave a comment with your thoughts below….
A Dollar Collapse? No Way – The U.S. Dollar Rocks! (Propaganda)
Are we on the verge of a dollar collapse? Don’t believe the skeptics. The truth is that there is no currency in the world that is stronger than the old greenback. The U.S. dollar is the reserve currency of the world. Virtually all of the nations on the face of the earth use it for trading and they always will. Why? Because the U.S. dollar is awesome. No currency on earth can compete with our awesomeness. So what that the dollar hit a new all-time record low against the Swiss franc today? Do you really want to move over with the Swissies and eat chocolate and make watches? No, you want to live in the land of American Idol, the NFL and apple pie – the good old USA. Who cares if it takes about a dollar and a half to buy a single euro now? Do you really want to go live with the Frenchies and eat a bunch of French bread while you wear a beret every day? Of course not. There isn’t going to be a dollar collapse. As long as the USA is still number one the rest of the world is still going to need U.S. dollars. So quit your worrying.
The other day all of the “doom and gloomers” were crying that the sky was falling because the U.S. dollar had fallen for 8 trading days in a row. They were proclaiming that the “end of the dollar” was near because the dollar index was approaching a new record low.
The following is how an article from yesterday in the Washington Post described the recent slide of the dollar….
The dollar has fallen against a basket of six major currencies — the euro, Japanese yen, British pound, Canadian dollar, Swiss franc and Swedish krona — for the past eight trading days. That measure struck its lowest point since July 2008 on Monday, at 72.72. It hit bottom in April 2008 at 71.33. Its highest point since the euro’s creation was 120.92 in July 2001.
Well guess what?
The dollar index moved back up today.
That is what happens – currencies go up and currencies go down.
There is no need to get your pants in a twist over it.
When the U.S. dollar goes down, it makes our products more affordable overseas. When other nations buy more of our stuff that helps our businesses.
So when the dollar declines a little bit that is nothing to be alarmed about.
So far in 2011, the U.S. dollar has only lost about 6.5 percent of its value.
Should we be freaking out about a measly 6.5 percent?
I don’t think so.
Do you want an even “scarier” number?
The dollar has fallen by 17 percent compared to other major national currencies since 2009.
Oooooooooohhhhhhhhhhhh – are you frightened out of your mind yet?
You better run outside Chicken Little – the sky might be falling.
The problem is that there are so many tinfoil hat wearing conspiracy theorists running around declaring that the U.S. dollar is dying that some people are actually starting to believe it.
Do you want proof that the U.S. dollar is going to be just fine?
Here you go….
Just check out what U.S. Treasury Secretary Timothy Geithner recently told the Council on Foreign Relations….
“Our policy has been and will always be, as long as I will be in office, that a strong dollar is in the interest of the country.”
You have the very words of the U.S. Treasury Secretary right there.
He has promised the we “will always” have a strong dollar policy.
Geithner has said it and that settles it.
Who are you going to believe? Are you going to believe the U.S. Treasury Secretary or are you going to believe a bunch of crazy Internet bloggers with blogs with titles such as “Economic Disaster” and “The American Dream Has Been Flushed Down The Toilet”?
Let’s get real.
The U.S. dollar is just fine and there is not going to be some mythical “dollar collapse”.
But isn’t the price of gasoline going up?
Sure it is.
But that isn’t the fault of the Federal Reserve. They don’t set prices for gasoline.
The reality is that prices for different things go up and down. That is what a free market economy looks like.
Right now the price of gasoline is actually lower than it was back in 2008….
So shouldn’t we actually be talking about falling gasoline prices?
I don’t know about you, but I sure am glad to be paying less for gasoline than I was back in mid-2008.
But the tinfoil hat crowd will “cherry pick” statistics to make it seem like things are worse than they really are. They will break out scary sounding statistics such as the fact that over the past 12 months the average price of gasoline in the United States has gone up by about 30%.
LOL – cry me a river. Life is tough. People will cry over just about anything these days.
Who really cares that the average American driver will spend somewhere around $750 more for gasoline in 2011?
That is just a sign that the economic recovery is in full swing.
Do you know how much all of that money is going to help our oil companies?
They are going to be swimming in cash, and all of that wealth will “trickle down” and help out the folks on main street.
You would think that the half-crazed economic bloggers out there would be thrilled by all of this, but no – they just keep trotting out the “inflation boogeyman” over and over and over.
Well, you know what?
According to no less of an authority than Federal Reserve Chairman Ben Bernanke, we basically have close to zero inflation in the United State right now.
You believe the Federal Reserve, don’t you?
If not, there is probably something wrong with you.
Unfortunately, we have got a whole bunch of these self-proclaimed “experts” (who are really just legends in their own minds) running around proclaiming that inflation is not calculated the same way that it used to be.
Well, you know what? They are right. But it isn’t some great conspiracy. The truth is that we have “improved” the way that inflation is calculated 24 times since 1978.
The government is always trying to become more accurate.
What is wrong with that?
But today we have a bunch of amateurs running around trying to tell us what the “real” rate of inflation actually is.
For example, a New York post analysis claims that the rate of inflation in New York City has been about 14 percent over the past year.
So how many prices did they measure?
Who are you going to trust more – the Federal Reserve or the New York Post?
Perhaps the New York Post should just stick to reporting on the latest Elvis sighting and leave economics to the big boys.
If hack reporting by publications like the New York Post wasn’t bad enough, we’ve also got numbskulls like John Williams from a website called “Shadow Government Statistics” running around proclaiming that the sky is going to fall because of U.S. government debt.
The following is a sampling of the smelly stuff that Williams is spreading around….
S&P is noting the U.S. government’s long-range fiscal problems. Generally, you’ll find that the accounting for unfunded liabilities for Social Security, Medicare and other programs on a net-present-value (NPV) basis indicates total federal debt and obligations of about $75 trillion. That’s 15 times the gross domestic product (GDP). The debt and obligations are increasing at a pace of about $5 trillion a year, which is neither sustainable nor containable. If the U.S. was a corporation on a parallel basis, it would be headed into bankruptcy rather quickly.
Does anyone actually believe any of that nonsense?
How long has Williams been predicting that U.S. government finances are going to collapse?
Yes, he has been doing it for a very, very long time.
Has the sky fallen yet?
Are we living in an economic wasteland?
Has there been a U.S. dollar collapse?
Look around you – everything is just fine.
Every time the U.S. economy has had a recession in the past, what has happened?
The economy has recovered and has gotten larger than ever.
And that is exactly what is happening again.
But sadly, there are more Americans than ever that actually believe that we are headed for economic disaster. In fact, there are some websites where they actually debate what the best place to live in the United States will be when the “economic collapse” happens.
Can you believe that?
People need to grow up.
Yes, the U.S. government is in debt. That should be no surprise. U.S. government debt is normal. The truth is that our financial system is designed to have U.S. government debt constantly expand and for there to always be a little bit of inflation in the system.
When the U.S. government goes into more debt, more money is created. If there was no debt in our society there would be no money.
So all of these bozos that claim that they want to get rid of all government debt don’t know what they are talking about.
We need to trust that the experts over at the Federal Reserve know what they are doing. The prudent moves by Ben Bernanke have helped the economy to recover after the horrible financial crisis of 2008. Instead of being criticized, he should be commended. There is a reason why he was named “Person of the Year” by Time Magazine in 2009.
The Federal Reserve is watching inflation. If it starts spiking up a little bit they will stomp it out. They know what they are doing.
This is 2011 – the people running things were produced by some of the greatest academic institutions on the planet. Nothing is going to catch them by surprise. They know exactly what our problems are and how to solve them.
So quit listening to the tinfoil hat crowd. Yes, the U.S. dollar will fluctuate a little bit relative to other major currencies. That is nothing to be alarmed about.
There is not going to be a dollar collapse so stop waiting for one. The U.S. dollar is always going to be the greatest currency on earth. Why? Because the United States is the greatest nation on earth.
After all, what other nation on earth could produce Justin Bieber, Jim Carrey, Simon Cowell, Pamela Anderson, Catherine Middleton, Michael J. Fox, Seth Rogen, Brendan Fraser, Jason Priestly, Tom Green, Ryan Reynolds, Mike Myers, Kiefer Sutherland, Howie Mandel, Keanu Reeves and William Shatner?
Hopefully by now you have figured out that this is a satirical piece demonstrating how ridiculous much of the propaganda in the mainstream media really is. Thank you for taking the time to read my twisted attempt at humor.
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. 10th Amendment
BY MICHAEL BIESECKER – Staff Writer
RALEIGH — Cautioning that the federal dollars in your wallet could soon be little more than green paper backed by broken promises, state Rep. Glen Bradley wants North Carolina to issue its own legal tender backed by silver and gold.
The Republican from Youngsville has introduced a bill that would establish a legislative commission to study his plan for a state currency. He is also drafting a second bill that would require state government to accept gold and silver coins as payment for taxes and fees.
If the state treasurer starts accepting precious metals as payment, Bradley said that could prod the private sector to follow suit – potentially allowing residents to trade gold for groceries.
“I think we’re in the process of inflating a dollar bubble that could be very devastating,” said Bradley, a freshman legislator elected in November’s GOP tide. “The idea is once the study commission finishes its work, then we could build on top of the hard-money currency with an actual State Tender Act that will basically [issue currency] in correspondence to precious metals stored in the state treasury.”
Bradley’s bill has yet to attract any co-sponsors among his fellow Republicans.
Mike Walden, an economics professor at N.C. State University, said the notion of North Carolina reverting to having its own currency is outlandish.
“We dealt with this issue about 100 years ago when the Federal Reserve was established,” Walden said. “If North Carolina were to have its own currency, that would put us at an extreme competitive disadvantage vis-a-vis other parts of the country and other parts of the world.”
State Treasurer Janet Cowell joked that Bradley’s precious metals proposal could increase efficiency in state government by providing a good use for her department’s old basement vault, which is currently used for storage.
“I look forward to engaging in an important public policy debate about whose face should be on the gold coin,” quipped Cowell, a Democrat.
But Bradley predicts that world events could soon prove him prescient.
“I don’t necessarily believe [the Federal Reserve] is about to collapse right now,” said Bradley, 37. “There are still a few things they can do with qualitative easing to sort of extend their survival. It’s just a question of how long. Right know we have a lot of sovereign debt going to China and Japan. When that debt stops being purchased by foreign countries, that currency is going to flood back onto American shores, potentially creating hyperinflation and bursting the currency bubble we have coming in Federal Reserve notes today.”
The Austrian School
Bradley, a self-employed computer technician and former Marine, attended Southeastern Baptist Theological Seminary in Wake Forest until he could no longer afford tuition, he said. While he has not taken any in-depth classes in economics, Bradley described himself as a devotee of the Austrian School, a branch of economic thought that originated in Vienna and was influential before World War I.
Back then the value of most of the world’s currencies were tied to the amount of the gold amassed in their national treasuries. The United States abandoned the gold standard in 1933, after it was blamed for worsening the Great Depression.
Though the ideas of the Austrian School have been rejected by mainstream economists for much of the last century, they are in vogue with Libertarians and some supporters of the tea party movement.
The language of Bradley’s House Bill 301 predicts a dire future for the U.S. economy.
“Many widely recognized experts predict the inevitable destruction of the Federal Reserve System’s currency through hyperinflation in the foreseeable future,” the bill declares. “In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System, for which the State is not prepared, the State’s governmental finances and private economy will be thrown into chaos. …”
Asked who are the “widely recognized experts” to which his bill refers, Bradley cited U.S. Rep. Ron Paul of Texas and Peter Schiff, a precious-metals dealer and investor who regularly appears as a commentator on Fox News.
Walden, the economics professor, said the views espoused by adherents of the Austrian School are well outside the mainstream of modern economic thought.
Bradley’s ideas for taking the state back to the Gilded Age don’t end at economics.
About Commerce Clause
A strict Constitutionalist, he has also introduced bills to exempt North Carolina agricultural products and firearms manufactured in the state from federal regulation as long as they are not sold or exported across state lines, measures that fly in the face of more than a century of U.S. Supreme Court rulings interpreting the Commerce Clause of the U.S. Constitution.
“They’re wrong,” Bradley said confidently of generations of justices. “The 10th Amendment is quite clear that those powers not reserved in the Constitution for the federal government are reserved to the states. It’s doesn’t take a high-priced lawyer to interpret the Constitution.”
Rep. Becky Carney, a Charlotte Democrat, said she found Bradley’s currency bill “perplexing.”
“There has absolutely been no indication of the collapse of the Federal Reserve system,” said Carney, who serves on the House banking committee. “It sounds like the Chicken Little story about ‘the sky is falling.'”
The office of House Speaker Thom Tillis declined to say whether the GOP leadership supports Bradley’s proposal to create a state currency. His bill has been referred to the House rules committee, where legislation is sometimes sent to die.
“There are a lot of diverse opinions and diverse views in our caucus,” said Jordan Shaw, Tillis’ spokesman. “I don’t think we’re going to forecast what will happen.” [email protected] or 919-829-4698
If you’re not convinced the threat of inflation in the U.S. is real, there’s a handful of Utah senators (17 to be exact) who respectfully disagree. The Utah Senate passed HB317 yesterday, 17-7, moving the state a few steps closer to a gold and silver standard. The bill allows businesses and individuals to exchange federally issued gold and silver coins instead of paper dollars in financial transactions.
The gold and silver would be valued at their current market price, meaning cashiers would probably need a calculator and a running Kitco ticker beside the register when processing transactions.
A state committee will now look at whether Utah should recognize an official alternate form of legal tender. Utah Governor Gary Herbert, who has not taken an official stance on the bill according to the Washington Times, will have the final say to veto or sign it into law.
If the bill ultimately becomes law, the implications would be interesting. On one level, it’s a symbolic move designed to send a message to Washington. On another, actually using gold and silver as legal tender would be difficult as users would have to file federally required transaction reports, according to the Deseret News.
If inflation becomes a reality, though, the appeal of such a system might be worth the headaches. Just last month, J.P. Morgan announced it would take gold as collateral for loans. It’s a sign that more sophisticated gold and silver transactions could be on the way.
Here’s a hypothetical: what if employers could pay employees in gold and silver? That amount could be electronically deposited into employee accounts not in USD but in XAU (the currency symbol for gold) or XAG (the currency symbol for silver). Banks could then issue special debit cards so that purchases could also be made in XAU and XAG.
If a business didn’t directly accept gold or silver as tender, credit card companies could apply an exchange rate for the gold or silver in the account, charge a fee to the purchaser and convert the purchase amount to USD at prevailing prices.
If the dollar were in the midst of a free fall, the consumer who’s holding gold or silver in the bank rather than dollars, would win. It’s almost enough to make me want to move to Utah.
Not enough gold in the world to return to a gold standard, Bernanke says
Rumblings that the U.S. should return to a gold standard have started trickling into the media as the public grows wary of a ballooning budgetary deficit. In an appearance before the Senate Banking Committee earlier this week, Federal Reserve Chairman Ben Bernanke was asked directly about the possibility of the U.S. returning to a gold standard.
“It did deliver price stability over very long periods of time, but over shorter periods of time it caused wide swings in prices related to changes in demand or supply of gold. So I don’t think it’s a panacea,” Bernanke said.
The soft response to questioning from Sen. Jim DeMint (R., S.C.) – a long-time Bernanke detractor – leaves a tiny window of hope that a gold standard might be something the Fed’s actually considering. “It’s not a cure-all, but it could be helpful,” Bernanke seems to be saying.
It’s difficult to imagine Bernanke would endorse a gold standard. He’s long maintained that the Federal Reserve kept too tight of a grip on the money supply by raising interest rates during the Great Depression. Once the public began losing faith in the dollar, they were all too eager to trade greenbacks for gold, which further contracted the money supply and ultimately led to deflation.
Linking the dollar to a fixed amount of gold would constrict the Fed’s ability to prop up the money supply. Bernanke himself pointed to another flaw he sees in a gold-backed currency: namely, that there’s not enough gold in the world to go around.
“I don’t think that a full-fledged gold standard would be practical at this point,” Bernanke said.
He could be implying a watered-down gold standard of sorts is possible in the future, but I’m not convinced Bernanke believes that. Inflation is one of the few tools the Fed has to spur growth (or at least the perception of growth). Giving power up is always more difficult than accepting it, and – so long as the public retains faith in the dollar – it would serve little purpose.
To understand the Gold Standard you have to understand money. To understand money you have to understand other things. Permit me to explain:
1. Money is a symbol for something that has a universal value. Most societies have only permitted gold and silver as money. Even our Constitution forbids the States to recognize anything else as legal tender:
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 any Thing 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.
If you are looking for a legal way to challenge the Federal Reserve, this is it. It appears that you could file a motion in your home state under this section of the U.S. Constitution to force your state to stick to gold and silver as legal tender. The U.S. Constitution is the highest law of the land. Nothing trumps it. However, there are ways around this provision. One is the so-called “Gold Standard”. In other words, we can use pieces of paper that actually represent gold or silver.
Some of you might even recall “gold and silver” certificates that floated around in past century. These were redeemable in actual gold and silver at your nearest Federal Reserve Bank. So, if you had a $1 certificate, you could redeem it for $1 worth of silver or gold. This is one of the reasons why Kennedy was assassinated, by the way.
MYTH 1: The Gold Standard is the Answer to our Economic Woes.
The fact of the matter is that there is only a limited amount of gold out there. In fact, you could put all the available gold produced in one year in your living room (about 50 million troy ounces.) That would have a market value of about 80 billion dollars. If we estimate all of the gold available to us today from previous mining operations, we are looking at a cube about 1/3 the size of the Washington Monument.
In other words, we would have about 10 billion ounces of gold. We would have about 10 trillion dollars worth of gold if we put the entire amount into circulation. With a global economy of about 60 trillion dollars, we would be about 50 Trillion short. Or, we could contract the global economy by 50 trillion dollars and be right there.
But, here is the problem:
1. People hold onto things of value. That means they pull it out of circulation. Gold is used for much more than just currency, so it would be fair to estimate that half of the 10 trillion would be pulled from circulation in the first year and reallocated for other uses.
2. It would eliminate all third party transactions. Using gold itself as a physical means of exchange would make it impossible for you to buy anything that was further than you could drive.
Which brings us back to the “Gold Standard”.
If every dollar were backed by the equivalent amount of gold than you have eliminated the problem of third party transactions, but you still have the problem of scarcity. There were about 829 billion US dollars in circulation as of December 2007 according to the US Treasury. That means we would need 20% of the available gold to back our currency. Europe would need another 20%. That means the rest of the world would have to fight over the remaining 60%. So, the question remains, what currency would they use to conduct business with the rest of the world and how would it be backed?
Now, if we throw silver in the mix, we have something we can work with.
MYTH 2: The Gold Standard Will Stop the Banksters from Stealing Our Money.
I wish it were true. But, it is not:
1. The Knights Templar were the first bankers of Europe. They would take in deposits of gold and silver and issue “wooden chits” that could be redeemed at any Templar facility in Europe or elsewhere. This was the “gold standard” in action. But, Banksters will be banksters and they figured out that very few people actually redeemed the “chits”. Instead they stayed in circulation.
2. Pretty soon, they started lending money to kings and Popes alike. They handed out wooden “chits” and demanded to be paid back in gold and silver. Thus, they leveraged the “gold standard” by issuing “notes” that actually had nothing behind them. All because they knew that 98% of the wooden chits would remain in circulation and very few would ever be redeemed for the gold and silver they kept on deposit.
3. Inflation is always the result of what we call “fractional lending”. The Banksters end up with the gold and silver, and we end up with a worthless currency that continues to decline in value.
The Real Problem is the Federal Reserve System Folks!
1. The Federal Reserve System is a private corporation controlled by Illuminati Jews and the literal descendants of the Knights Templar. Most of the families that own the Fed are not even American Citizens.
2. The Fed uses the Treasury to print its privately owned currency and then charges us interest just to keep that currency in circulation.
3. The IRS and Federal Income Tax were created for the sole purpose of paying off the Interest owed to these Private Bankers for Using their currency.
Imagine what life would be like without an income tax. The divorce rate would plummet. One spouse could support a family. America would truly be the “Land of the Free”.
John F Kennedy was Murdered for trying to shut down the Illuminati Banksters:
1. He actually created a publicly owned currency that was backed by gold and silver. Some of you might recall the gold and silver certificates of the early 60s.
2. The currency was owned by “We the People” and it was interest free!
3. If he would have lived, and his program would have succeeded none of this current mess would have happened.
But, they killed him. If you remember nothing else, remember this: Anyone that calls for a gold standard without also calling for the abolishment of the Fed and a “Silver Standard” is throwing you a “red herring” and either stupid, or employed as a mouthpiece by the Illuminati Banksters. You need gold, silver and an interest free currency if America is to be truly free.