[See also, Baltimore B-Note at Reality Sandwich]

For all my fiery, unheeded oratory about why there was a good reason not to vote, I ended up with a ballot in my hand anyway.  My car has a history of driving me places without my consent, and it drove me to the polls on election day.  I suppose I was hoping I’d find an Independent running for dog-catcher or something but, alas, there were no local races, only statewide offices up for grabs, featuring nothing but the usual, hermetically-sealed Demopublican action figures.  So I wrote in Green Mel Packer for U.S. Senate, Republican Sam Rohrer for Governor, and myself for Congress and State Representative. 

There was, finally, a Democrat called Tom Conners running against the disease-riddled “Shuster dynasty” for Congress.  Apparently, Conners went to all the trouble to get his name on the ballot, only to have it appear a week later on an FBI missing persons list, where it remains to this day.  There wasn’t even a Democrat running against Republican State Representative Todd Rock.  Oh well, that’s politics, Pennsylvania-style.  I would run for State Rep myself in 2012, but with my checkered past, foul mouth, and the near universal disdain people have for me and my opinions, it would probably be a gigantic waste of time.  I might do it anyway, just for shits and giggles.

I would, at this time, like to congratulate Tea Party imposter Pat “Stick It” Toomey for shaving off a victory over Democratic Congressdroid Joe Sleazestack in the U.S. Senate contest.  As it turns out, Joe’s hypogonadism in forcing Mel Packer off the ballot didn’t really pay off.  As I suspected, he didn’t need Packer on the ballot to lose, he just needed himself.  Don’t let it get you down, Joe.  Just pick yourself up, dust yourself off, and go get that corporate lobbying job that’s waiting for you on Wall Street.  I’d also like to congratulate Tom Corbett, the other half of the 2-for-1 Tea Party Imposter Set, for his veritable five-finger death punch on Democratic embarrassment Dan Onorawhatever, in the race to replace outgoing Governor Edward G. “Fast Eddy” Rendell. 

In all fairness to Big Ed, he ranks pretty high on my list of the Top Ten Least Pathetic Democrats because he does, on the rarest of occasions, sneak a decent move in under the radar, such as his recent public expression of exasperation over the revelation that state law enforcement officials included Ron Paul supporters and people who utter the phrase “U.S. Constitution” on a watchlist of potential home-grown terrorists.  I hope Rendell gets that all straightened out before he vacates 2035 North Front Street, otherwise I have a cot with my name on it at Guantanamo.

It’s been over for quite a while now, but this seems as good a time as any to announce the official death of the First American Experiment.  For one election too many now, the American electorate has chosen to ignore the fact that their entire political system–hopelessly and utterly poisoned by private money and useless ideologies–is an abjectly corrupt and wholly-owned subsidiary of the global loan sharking industry.  In addition to bringing us one illegal and undeclared war-for-profit after another, the most glaring side-effect of this dark reality is the U.S. national debt. 

The GAO’s laughably low estimate of .5 trillion is, at 60% of GDP, probably already unpayable in any conventional monetary terms.  If I read my Econ 101 book correctly 27 years ago, this means that if the foreign-owned banks who enable our militarized corporate welfare-state decided to call in a balloon payment this very moment, America would be forced to relinquish six-tenths of its productive capacity–labor, resources, and physical plant–to them.  How any rational person can look at the GAO’s (absurdly underestimated) debt assessment without suffering at least the initial pangs of vertigo is beyond my comprehension.

But, of course, the official figure is a joke.  Besides undoubtedly being a consummate example of creative accounting in and of itself, it doesn’t make any allowances for our future obligations to Social Security, Medicare, and other entitlements for an aging population.  More importantly, it also doesn’t encompass any projected costs for all the “stimulus” packages, corporate bailouts, Federal Reserve “quantitative easing,” and wars that are certain to come. When all these factors are injected into the debt quotient, the real amount that American taxpayers and their children will owe the global banking syndicate is virtually incalculable, although I’ve seen figures as high as 0 trillion. 

Speaking of “quantitative easing,” the Federal Reserve Bank of the U.S., the American branch of Loan Sharks International LLC, has just announced its intention to purchase 0 billion worth of new U.S. Treasury bonds between now and next summer, allegedly to keep interests rates low and encourage more lending, thereby allegedly jump-starting the stalled alleged recovery.  Of course, most mainstream news reports make it sound like the Federal Reserve is doing us all a big solid, but what they fail to clarify is that it is 600 billion more dollars that American taxpayers now owe the counterfeiters at the Federal Reserve.  Just tack that on to the .5 trillion, or don’t bother. It makes little difference at this point. 

But while the mockingbirds in the corporate-owned media are not adequately representing the bond purchase for what it really is, even initial Associated Press reports openly question the reasoning behind such a move, given that interests rates are already at historic lows, and real bank liquidity at historic highs thanks to the bailouts, without having spurred any increase in lending.  When even the press release regurgitators at AP doubt the efficacy of this lastest round of “quantitative easing,” then it’s reasonable to speculate that the Fed’s decision has some far less noble motivation than rescuing America from of its eddy down the proverbial economic shitter. 

In addition to setting the Federal Reserve up as saviors from the very mess they and their kind purposely created, it has the added benefit of convincing middle-class Americans to keep pumping their life savings into Wall Street, where it will be siphoned away again by the financial elite in the next engineered crash.  America’s financial markets remind me of the last days of Leonid Brezhnev, whose acolytes had to prop him up before throngs of dead-eyed Soviet citizens with two-by-fours.  The Fed’s 0 billion Treasury bond purchase is just another two-by-four.

The way it works (really!) is that the privately-owned, thoroughly un-American, and completely unfederal Federal Reserve– to whom the U.S. Congress illegally abdicated it’s constitutional duty to coin currency and direct the nation’s monetary policy almost 100 years ago–creates money out of thin air, with no collateral necessary and at absolutely no cost to themselves, then lends it to the American people at interest.  Because the Federal Reserve is the nation’s supreme banking authority (or just the supreme authority period)–answerable to no American governing body, including the White House and Congress–creating new money is literally as simple as the Fed instructing one of its humble database developers to add a few zeros to its own balance and click the Submit button. 

Since the newly-minted digital money is counterfeit, the Federal Reserve has everything to gain and nothing to lose by lending it to you and me at amounts they know we can never pay back in kind, secure in the knowledge that they’ll get their pound of flesh in far more lucrative and insidious ways.  If not you, then your children will eventually have their 401ks and IRAs confiscated, be forced to work for pennies on the dollar with no benefits or safety assurances, and have their meager wages devoured by all manner of taxation without representation (income, payroll, sales, carbon, oxygen, VAT, and any other kind of tax the warlocks of international finance can conjure up in their cauldron of economic terrorism).  It’s the most elementary, and yet unquestionably the most brilliant, scam in human history.  And you and I have spent our lives bent over screaming to these anonymous money masters, “Thank you sirs, may we have another!”, because we’ve been successfully indoctrinated to believe that in order to have “a life,” one must have “stuff.”

Today’s national debt probably lurks somewhere between .1 trillion and 0 trillion, but however you slice it, the United States of America is, per capita, the most bankrupt country in the Milky Way.  We cannot pay the transnational bankers what we owe them in the same fashion a credit-worthy borrower would–in reliably consistent monthly installments that steadily reduce the balance.  We will, instead, have to pay them the same way the Third World pays them, and the Europeans will soon have to start paying them–in blood, sweat, and tears.  The only reason the U.S. isn’t already swimming in the same soup with the Greeks and the French is because the U.S. dollar is still the world’s reserve currency.  Without that protection, America’s precarious AAA credit-rating would be burnt toast.  And with the cries from China, Russia, Brazil, and the Eurozone for a new world reserve currency growing ever louder since 2008, it appears an end to our preferred-borrower status is well-nigh upon us.

Thomas Jefferson forewarned us about our current predicament when he said, “If the American people ever allow private banks to control issue of their currency, first by inflation, then by deflation, the banks and the corporations that will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” 

James Madison concurred with, “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.” 

Abe Lincoln put in his two pennies with, “Corporations have been enthroned, an era of corruption in high places will follow, and the money-power of the country will endeavor to prolong its reign by working upon the prejudices of the people [God, gays, and guns] until the wealth is aggregated in a few hands and the Republic is destroyed.” 

Even the original Traitor-in-Chief, Woodrow Wilson, lamented after having signed the Federal Reserve Act of 1913, “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world, no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.” 

So let it be written, so let it be done.

When I say that the First American Experiment is dead, I don’t mean that there will no longer be a geographical region that calls itself the United States of America.  That geopolitical aberration will probably continue thrashing about in its feverish, pre-mortem desperation for decades to come, leaving as much human agony and carnage in its wake as it possibly can as the world’s premiere Corporate Mercenary-for-Hire.  What I do mean, in the simplest possible terms, is that the U.S. debt is now so astronomically high that there is no conceivable means of making good on it that would allow us to continue to have a truly sovereign, independent government. 

In lieu of payment, our executive and legislative branches will be forced to concede their decision-making powers on all the most crucial economic and foreign policy matters to the dons of the global banking mafia who lured us into this bottomless fiscal pit.  The White House and Congress will officially be what they essentially already are–nothing but smokescreens between the American peoples’ delusions of autonomy and self-determination, and the foreign lenders to whom we’ve mortgaged away our once-great nation’s economic and political destinies.

This week’s elections, evidenced by our continued inexplicable willingness to vote for corporate-owned Democrats and Republicans, indicate that Americans still have little capacity or desire to protect themselves from their true enemies.  As I see it, then, given the lateness of the date and the country’s coordinates relative to the Point of No Return, the First American Experiment has only two possible outcomes left.  Neither is pleasant, in my opinion, and both spell the end of our liberty.

1.)  The U.S. will steadily evolve into a giant gulag of compliant, glassy-eyed indentured servants who are afraid to say anything that breaches the boundaries of acceptable discourse in polite society, for fear of losing the few remaining comforts afforded them by their unseen and untouchable financial overlords.  Currently faced with the very real prospect of foreclosures and the loss of jobs and health care benefits, I can already see this happening. 

2.)  The American middle class will suddenly awaken from its hypnotic REM state, probably because someone from the bank came and started undoing the wall screws on their 50″ HD TVs, or rifling through their belongings looking for the keys to their ,000 gas-guzzling RVs.  Feeling somewhat put upon, they’ll lash out in public protest which, incited by government-paid agents provocateur, will turn violent like the ones in Europe, and which will be squashed like a stinkbug under the jackboot of the national-security apparatus erected by the Clinton and Bush administrations, and perfected by the Obama administration.  This middle-class “uprising” will probably be accompanied by resistance from the growing legions of militiamen, constitutionalists, state sovereignty advocates, and others who refer to themselves (in many cases, rightly so) as “patriots,” but which will be equally futile simply because the enemy has more and bigger guns, and can count the hairs on their heads from orbiting satellites.

The challenge–for those of us who refuse to believe that things such as physical comfort, social status, and other artificial constructs of the fear-based, scarcity-obsessed human psyche are the Alpha and Omega of existence–is no longer how to salvage the First American Experiment, but how to lay the groundwork for the Next American Experiment.  Because few, if any, of us will see such a thing come to fruition in our lifetimes, efforts toward that goal will have to be largely self-sacrificial and almost purely altruistic.  But I think the still, deep-running waters of the American Spirit–which once imbued the USA with such historically unprecedented potential, but which has since been intentionally rendered comatose and waiting for the plug to be pulled by the corporate media–should somehow be kept flowing beneath the surface, so that there survives a reservoir of ideas for future generations to draw upon when the time comes for them to pick up the pieces and try again.

This is all assuming, of course, that the U.S. Army doesn’t release some sort of toxin into the atmosphere that turns us all into insatiable flesh-eating zombies, at which point any discussion of Spirit becomes moot.  We’ve already got the “insatiable” and, judging by recent election results, the “zombie” parts down cold.  Now all they have to do is convince us to start eating each other.  Hell, if we’re gullible enough to keep voting for Republicans and Democrats, a biological contaminant may not even be necessary.  A few Super Bowl PSAs might do the trick.

All kidding aside, though, I thought I detected the barely discernable pulse of the American Spirit in a story I read yesterday about the Hampden subdivision of inner-city Baltimore, which has introduced its own neighborhood currency called the “B-Note.”  It’s a form of alternative citizen-money exchangeable in, but independent of the doomed US dollar, and designed specifically to serve the practical daily needs of Hampden residents, rather than the greedy appetites of big banks and corporations.  According to the article, the happy denizens of Hampden are taking to it like a hot fudge sundae.  Food for thought.

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I have saved millions of jobs over the past two years. Of the total population employed, nearly half would not have work had I not continued to spend, save and invest.

It sounds nutty, but is my boast any more fanciful than our government saying it saved millions of jobs over the past three years because of economic stimulus?

Not only has it not saved any jobs, but no government, by its nature, can create any new net employment.

At face value, this statement may seem preposterous. However, it’s not what you see, but what you don’t see, that makes the difference. It’s this vital aspect of economics that makes it so easy for government to fool most of the people most of the time.

Begin by realizing that nowhere did we say the government has not hired anyone. It has and will continue to until the presses run dry. Unfortunately, for every job the government creates, it must extract the funds from some productive citizen like you and me.

This is the government fable relied upon by our dishonest politicians to continue down the ecomonic stimulus path so disastrously undertaken over the past 36 months.

There is nothing original in spreading this myth of how government works. It’s not a new story. It is a common theme throughout history.

The government tries to save the economy. It kicks the can down the road. Eventually, not only does it not solve anything, but it almost always creates a situation worse than before.

As much as I’d like to claim originality in my writings, I borrow heavily from a French economist of the mid-19th century (1849), Frederic Bastiat. As an economist, he ranks up there with von Mises, Hayek and Rothbard.

As a statesman (as opposed to politician), he’s in the Ron Paul category, driven entirely by the pursuit of truth and liberty.

Here’s how Bastiat describes poor economists of his day.

“Hence it follows that the bad economist pursues a small present good, which will be followed by a great evil to come, while the true economist pursues a great good to come, at the risk of a small present evil.”

Would this not be the perfect description of every government-employed economist of our day? Or, better yet, is this not a summary of every stimulus package we’ve seen to date?

This brilliant Frenchman’s writings read as if he worked today for Taipan. Here’s how he responded to government’s attempt to create jobs through public works projects:

Nothing is more natural than that a nation, after having assured itself that an enterprise will benefit the community, should have it executed by means of a general assessment. But I lose patience, I confess, when I hear this economic blunder advanced in support of such a project: “Besides, it will be a means of creating labor for the workmen.” [Emphasis added]

The State opens a road, builds a palace, straightens a street, cuts a canal, and so gives work to certain workmen — this is what is seen: but it deprives certain other workmen of work — and this is what is not seen…

Then you will understand that a public enterprise is a coin with two sides. Upon one is engraved a laborer at work, with this device, that which is seen; on the other is a laborer out of work, with the device, that which is not seen.”

This is as crucial of a point in his time as ours: For every job government creates, they delete an equivalent one from the private sector.

Take a moment and ask yourself is there a single efficient undertaking a government can do more efficiently than the private sector.

I dare say we both know the answer to this is a resounding “NO.”

Because government cannot create, it is only logical to concede that for every dollar spent by the government, one must be extracted from productive citizens.

Coupling this with the fact that governments are less efficient than the private sector, it must be concluded that not only are no jobs created, but with each government created position, there will not only be an offsetting loss, but a loss greater than the job stolen from the private sector.

There are volumes of research demonstrating exactly this. Unfortunately, even when presented by the government’s own wizards, they must be ignored, lest they lose a proven gimmick to dupe the citizenry and maintain their power.

As hard as it may be to hear,Washingtonknowingly destroys jobs with every spending program it initiates.

Written  by Joseph McBrennan for Taipan Publishing Group. Additional valuable content can be syndicated via our News RSS feed. Republish without charge. Required: Author attribution, links back to Transoceaninal content or www.taipanpublishinggroup.com.

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Over the past year we’ve spent a great deal of time pointing out the lies, called “revisions,” from President Obama and our Fed Chief, Big Ben Bernanke. We take no joy in calling your attention to the massive deficit of action from these two.

But when you’re right… you’re right. In the past two weeks alone:

We’ve shown you that real unemployment numbers are in excess of 20%.
The 2008-09 recession should really have been called a depression.
And our 2011 first-quarter GDP wasn’t anything close to what both of these proclaimed as a slow, steady, progress to recovery.

The truth is, our economy is still a disaster.

Now we’ve been treated to the grandest revision of them all: Friday afternoon Standard & Poor’s lowered theU.S.credit rating to AA+. Of course, I’m no fan of S&P. I’ve written pretty extensively about my feelings on the three ratings agencies. They provide little useful information and never in a timely manner.

While the downgrade caught the rest of the world by surprise, it didn’t surprise our readers. That’s because we’ve written about it for more than a year and have taken full advantage of it.

Sometimes it’s a difficult call. Others times, like when a politician stands up and adamantly denies or proclaims anything, rest assured it’s probably already happened.

One of the earliest signs the U.S. debt was in serious trouble came on February 7, ,in a news interview on ABC’s This Week, when none other than U.S. Treasury Secretary Timothy Geithner was asked if the U.S. would lose our Triple-A rating. He responded:

“Absolutely not. And that will never happen to this country.”

When a politician says anything is an absolute, take the other side of the bet. (Think Monica Lewinski andClinton’s infamous quote, “I never had sexual relations with that women,” if you’re looking for an obvious example.)

Mr. Geithner probably should have been reading our publications. If so, he would have had advance knowledge that this downgrade was coming.

You see, Taipan readers were told a year ago that Dagong Global Credit Rating Company announced they were getting into the sovereign debt evaluation game:

“China’s leading credit rating agency,” the U.K.’s Telegraph reports, “has stripped America, Britain, Germany and France of their AAA ratings, accusing Anglo-Saxon competitors of ideological bias in [favor] of the West.”

– Justice Litle, Taipan Daily, July 

The Chinese aren’t the only ones who spotted the obvious and wrote about it.

The Financial Times reported on July 18, 2011, that

Egan-Jones has become the first U.S. rating agency to downgrade the country’s sovereign credit rating from triple A to double A plus as it focuses on the rapid rise in outstanding debt over the past five years.

I’m guessing you’ve never heard of Egan-Jones.

There’s good reason. This little research company is private. In other words, it doesn’t have theU.S.seal of approval as do the S&P, Fitch and Moody’s.

Egan-Jones is paid to perform and doesn’t have the government sponsorship the other three enjoy. Institutions pay Egan-Jones to anticipate what will happen in advance of market actions, the other three tell you what you already know.

You tell me — which is more useful?

Now I would like to give credit where due, and S&P has performed a real service if their actions stir any positive steps inWashington. I’m not holding my breath, but at least the media is reporting it, unlike the Egan-Jones’ or Dagong’s downgrades.

Of course, Timmy G. tells us S&P is wrong. He said that S&P’s math was inaccurate by a couple trillion dollars. In the same breath he acknowledged theU.S.deficit is unsustainable.

Timmy G. went so far as to say the actions showed “terrible judgment” and “a stunning lack of knowledge about the basicU.S.fiscal budget math.”

For an Obama insider to accuse anyone of poor judgment and lack of knowledge of basic math is the ultimate in hypocrisy.Washingtonis the very definition of these qualities.

And asRomeburns, not even a note from the fiddle of President Obama.

As I write, Treasury bonds are rallying, markets are swinging wildly, and the media and politicians are blaming the Tea Party for asking the U.S. to stop borrowing and spending.

Unfortunately, we’ll hear nothing from our presidential hopefuls. This speaks volume to their leadership character, or lack thereof. I will have to exclude Tea Party favorite Ron Paul, who may have been the only one warning of this longer than the writers here.

 One unintended consequence may be a flood of municipal bonds entering the market if their triple-A ratings are tied to Treasuries. If this happens, prices for munis may get cheap and worthy of consideration.

Written by Joseph McBrennan for Taipan Publishing Group. Additional valuable content can be syndicated via our RSS feed. Check us out on www.facebook.com/TaipanGroup or follow us on twitter.com under Taipan_Trader. Republish without charge. Required: Author attribution, links back to original content or www.taipanpublishinggroup.com. 

According to the Cato Institute, who stated the words in the title of this post? Congressman Ron Paul, that crazy libertarian type out of Texas? Somebody out of that wacky tea party crowd? One of those nut case Fox News hosts? No, those words were stated by President-elect Barack Obama in 2008. What a great idea, take a ground up approach to examine and analyze every expenditure of taxpayer money that the political class has responsibility for.

Unfortunately, never has a politician’s promise never fallen so short. Consider what has happened since the President took office:

In the first two years of Obama’s Presidency, his administration has shattered all previous records highs of Federal budget deficits, adding almost three TRILLION dollars to the national debt in just his first two years with the potential of adding many more TRILLIONS, based on the President’s current budget plans.
Thousands and thousands of new Federal government employees have been added to the government budget in the past two years.
The much touted Obama Care health care reform legislation is already showing signs of being a budget deficit expander rather than the promised budget deficit reducer.
Social Security and Medicare are still hurtling towards insolvency, just doing it quicker under this administration.
Despite other promises, this administration has allowed the wasteful budget earmark process to exceed over 11,000earmarks in the current Federal budget, costing the American taxpayer almost billion a year.
We still have hundreds of thousands of U.S. troops stationed all over the world, most serving no purpose, with no plan to bring them home and eliminate the expense they incur.

We could go on and on but this is just another busted Obama campaign promise that we can put next to the non-closing of Guantanamo, getting all of our troops out of Iraq, moving gay rights issues forward, curbing earmarks, etc., etc., etc.

The good news is that many people are trying to fill the President’s promise of eliminating waste even if he has done nothing to that effect. The Cato Institute has been conducting a great analysis and doing exactly what Obama said he would do but has not done: going through the federal budget line by line to see what can be downsized or eliminated and the wealth/taxes that supported the waste can be returned to the country’s taxpayers.

A recent national newspaper ad from Cato summarized their findings so far. They have already identified about 0 billion a year that the government could save without sacrificing the quality of life in America. This would be the equivalent of giving every American household a check for just over ,000 a year. Imagine how much of a stimulus to the economy it would be if 115 million households had an extra ,000 a year, year after year, to spend on products and services they wanted. Not only would every household be a little wealthier, they would also be a little freer, freer to spend their hard earned dollars the way they wanted. These savings were found in all areas of the Federal budget including transportation, education, defense, and others.

Below are some other suggested steps for Federal budget integrity, austerity, and efficiency:

Step 1 – reduce the size of the Federal government by 10% a year for five years.
Step 2- step up the investigation and prosecution of fraud in all Federal agencies.
Steps 3 -fix Social Security by raising the retirement age and restricitng payments to those Americans whose net worth is over million..
Step 4 – bring the vast majority of foreign deployed U.S. troops home.
Step 5 – base Congressional pay on performance, eliminating the automatic annual pay increase process.
Step 6 – eliminate all Federal expenditures that do not significantly impact the citizens in at least five states.
Step 7 – subject all Federal entities to a Sarbannes-Oxley accounting process to identify and eliminate waste.

There are two other steps that need to be examined. Many of the proposed budget reduction steps will be difficult to implement since they would dry up the funds that the political class depends on to finance their re-election campaigns. Political donations from teachers’ unions, the military-industrial complex, the large farming companies, etc. will fight, lobby, and donate to keep their sweetheart deals in place at the expense of the American taxpayer. That is why two additional steps from also need to be implemented:

Step 8 – allow only individual citizens to contribute to campaigns, making it illegal for unions, PACs, corporations, and lobbyists to finance any portion of a politicians election campaign.
Step 9 – institute term limits for all political offices in order to dry up the tap of campaign donations.

By taking re-election campaign donations out of the equation, it will be much simpler to reduce the fat and waste that supports those entities that rely on American taxpayer wealth without producing tangible and necessary benefits.

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It’s that time of the year: The real estate industry is rolling out the shop-worn playbook of optimistic forecasts for the New Year. In San Diego these canned phrases are:

Solid signs of a firming market,
With interest rates near all-time lows,
Buying now is a no-brainer,
Get in now, before the huge pent-up demand for homes hits,
What a great time to buy with low interest rates and a good supply of homes for sale,
Act fast now, or you may be paying thousands more in a few months.

We have heard these same phrases since 2005. The major difference was that in 2005 and 2006 many of the Gurus were adding phrases:

It’s only a normal pull-back,
It’s known as a ‘pause to refresh’,
This is a once in a lifetime buying opportunity before the market resumes it’s double digit yearly appreciation.

Amazingly in San Diego, California, is the local media talking-heads still go back to the same industry spokespeople to get their 60 second optimistic new year outlook for the 6:00PM news.

Naturally, I’d like to join this optimistic, self-promoting crowd, but sorry, I have to tell it like I see it.

The title of this article says it all. After the ,000, Federal and California home buyer credits expired, the local San Diego real estate market entered into a double-dip continued erosion of home values.

After the homebuyer credits concluded, San Diego home values saw modest price appreciation. Now even this modest appreciation has disappeared. Even more troubling is that the resale home sales volume has been dropping at double digit rates for the last few months.  Just from April to May the western states sales dropped a reported 20.9%. Huge double-digit declines in home sales are a major red flag that cannot be ignored.

When will the government learn that you cannot artificially create lasting demand?  (Statistics show the vast majority of government housing programs, costing billions, are outright failures and have only prolonged our malaise.)  I believe the best thing the government can do is to stay out of the housing market and let the open market clean up the mess.

Think about this: Bernanke initially spent almost trillion to drive long-term interest rates down.

The 0 billion QE2 has no effect to date. Actually, interest rates have moved up substantially. There are a few months left, but I am sure Bernanke will use the “it would have been much worse” argument and declare success. The reality is that there will be no QE3, not with Ron Paul now as the watchdog of the Fed.

Our aging population, combined with a decreased standard of living can’t equate to housing starts comparable to prior generations. I think our government’s relentless destruction of the middle class is making this different from prior real estate cycles.

Foreclosure moratoriums are beginning to expire.  I believe the banks will push to clean up their portfolios through increased foreclosures.

Except for cash buyers, home pricing is derived from the affordability of the monthly payment. Should interest rates and taxes go up (a good bet), the purchase price will have to come down to establish a market. Construction labor is already about as cheap as you can get it and inflation for materials is already present. This spells very bad news for homebuilders.

As far as pent-up buyer demand goes, the gurus again have it backwards. It’s not buyer pent-up demand, but seller pent-up demand to unload their homes.

The depth and longevity of this San Diego housing value depression has been imbedded into the consciousness of the usual first wave of home buyers in their late 20′s and early 30′s.  The high cost of living in San Diego has been further stressed with continued multiple raises in utilities, increased state taxes/fees, higher education costs and .00+ per gallon gas prices. This all equates to over-priced homes in the current world of qualifying for a home mortgage.

I just believe there are major problems with our economy at play that we have never seen before and that will have a deciding call on what happens with housing. I see demand based on finance rather than population at this point.

During the mid 2000′s, almost the entire mortgage universe had been refinanced. This included many baby boomers that were in the last half of the 30-year mortgage they took out when they purchased their home. Some of this was hopefully to pay down other expenses and not to maintain their fantasy of the luxury lifestyle.  The refinancing bubble that resulted from the irresponsible actions of Greenspan reset the 30-year mortgage clock. All borrowers looked at, was how the refinance lowered their house payment by $ X per month, without giving a second thought to the fact that they have also extended the term to a new 30-year loan.

Another round of refinancing occurred when Bernanke pushed rates down to the 4% range. The only borrowers left who have not refinanced are those with no equity and/or are facing foreclosure.

In either case, now many Boomers who are reaching the traditional retirement age, find themselves strapped with 20+ years left on their refinanced mortgages. Instead of preparing for the mortgage burning party that their parents had when that generation retired, they are wondering how they can make house payments on a lower income during retirement.

Since this is the first year of the boomers reaching 65, it is going to be a negative drag on housing for years to come.

For the San Diego and California real estate market we have to contend with our own Cap & Tax laws going into effect in 2011 that will increase utility costs by 20% over the next five and speeding up the loss of manufacturing jobs. We also have a new, old governor who was against proposition 13 which sets a maximum cap on property taxes and will likely propose new massive state taxes to deal with a .4 billion budget deficit.

If you have stayed with me this long, I’ll wrap things up by saying I personally do not see any real base building in the San Diego real estate market until 2012. Naturally, I hope I’m wrong and 2011 sees a big jump in San Diego home appreciation. With 30+ plus years of residential experience and my 2005 article that foretold this national housing bust, I wouldn’t bet against me.

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Justice Litle, Editorial Director, Taipan Publishing Group

Gold and gold stocks have been hit hard in recent days. In part one we examine the reasons as to why, and in part two cover why gold stocks could be one of the biggest trades of 2009.

Gold and gold stocks have been hammered as of late. The yellow metal took a header on Monday, with the futures closing right on the 200-day exponential moving average. If that support doesn’t hold today (Tuesday), gold may even be trading lower by the time you read this.

So what’s going on exactly?

There are a few factors at work at here. To skip ahead a bit, there is still strong reason to believe gold stocks could be one of the best trades of the year – but in the short run, the environment for gold looks challenging.

One old bogey that has come out of the woodwork is the prospect of IMF gold sales. At the recent meeting of the G20 in London, there was general agreement that the IMF (International Monetary Fund) should sell just over 403 tons of gold to free up cash for loans to poor countries.

Yawn…. the “IMF to Sell Gold” headline makes for much better press than the actual details.

For one thing, 403 tons of gold is just not that much. We’re talking roughly billion worth at today’s prices. That’s a drop in the bucket, especially compared to China’s roughly trillion pile of reserves… less than one percent of which are held in gold.

(For more detail on the relatively tiny gold holdings of many of the world’s central banks, see the Feb. 24 Taipan Daily piece “Why the IMF and Fort Knox Won’t Put the Hurt on Gold.”)

For another thing, the prospect of IMF sales is not new. The IMF has actually been trying to sell gold for more than two years. Part of why it hasn’t been able to do so is because authorizing the sales requires an 85% majority vote from the IMF’s 185 member countries.

On top of that 85% hurdle, the United States basically holds veto power over any IMF gold sales measure (because America’s proportional voting rights are so large). In that regard, the U.S. government has informed the IMF that, by order of law, authorization from Congress is required for any gold sale to go ahead. (Can you imagine Turbo Timmy making that request, to this Congress, in this climate? Ron Paul would have a field day.)

So any approved IMF gold sale would be small, in quantities easily absorbed by countries like Russia or China (who have openly stated a distaste for their overlarge dollar holdings). Any sale would further require 85% approval, plus approval from the United States Congress… and last but not least such sales, if they happened, would probably be disbursed over many years. The remaining 3,200 tons of gold the IMF holds represent quota requirements from member countries and cannot legally be sold.

But, still, gold has been sinking like a stone. What else could be the problem?

Another factor hurting gold in the short term is “gold scrap,” or scrap sales. Private holders of jewelry and trinkets, particularly in Turkey, the Middle East and Asia, have been stepping up and selling their scrap gold.

India, the “world’s largest gold buyer by a wide margin,” has even stopped importing “for the first time in 10 years,” the Financial Times reports. In February and March India saw zero gold imports, while January imports came in light. Vietnam and Thailand, normally reliable buyers of gold, have also been selling. Stepped-up scrap sales have even put Asia scrap sales at a discount to the standard London quote.

It’s important to point out that many of these scrap sales are driven by distress more than any sense of market timing. Unemployment woes and rising food costs have forced hard-up Asian families to dip into their emergency stashes. Traders have further noted that these scrap sales seem sensitive to price. As the gold price per ounce fell towards 0 and below, scrap sales volume saw a clear decline.

Yet another factor weighing on gold has been the suspension of “mark-to-market” accounting rules.

Last week America’s FASB (Financial Accounting Standards Board) bowed to pressure from Wall Street and loosened up mark-to-market accounting rules, causing a huge sigh of relief from the banks. Here is how I explained it to Macro Trader members on Friday:

Part of the reason stocks rallied big on Thursday was a suspension of “mark-to-market” accounting rules.

In plain English, this means the banks will no longer have to use real-time pricing for the stinky stuff on their balance sheets. They’ll be able to “estimate” what the toxic assets should be worth instead.

This is sort of like a homeowner saying “well, my house might not be saleable in this tough real estate market, but in a better market I’m sure it would be worth, oh, 0,000… so that’s what I’ll say it’s worth for now…”

Some people think the suspension of mark-to-market rules for bank assets is a smart idea. Others think it’s a terrible idea. Either way, it’s pretty bullish for the financials, at least in the short term.

Stocks also rallied [recently] on news of a potential trillion dollar injection into the IMF (International Monetary Fund), and the general perception that the G20 meeting in London was a success.

The mark-to-market change is basically a cheap magic trick. The banks may benefit from the opportunity to abandon real-world accounting in favor of fantasy-world accounting, but toxic assets are still toxic assets. Smoke and mirrors won’t change that.

In sum, the current weakness in gold and gold stocks is all about short-term perceptions (with the exception of increased pressure from scrap sales, which remain sensitive to distress and price). The IMF news is more hype than substance, and the abandoning of mark-to-market accounting rules is more a tacit admission of how ugly the picture still looks for banks, rather than a concrete step towards fixing the problem.

Meanwhile, rally-happy traders saw the chance to buy up risky assets on the back of mark-to-market suspension and good G20 news. As a result of the major move we just saw – the biggest 4-week rally in the S&P since 1933 – areas of the market that had previously suffered from lack of liquidity, like high-yield debt, commercial real estate assets and so forth, caught a huge bid. There was a fast-and-furious hot money rotation out of “crisis insurance” type assets (like gold and gold stocks) and into “woohoo let’s party!” type assets (like bank stocks and high-yield debt).

That wraps up the near-term end of things as to why gold (and thus gold stocks) are out of favor right now.

Tomorrow I’ll share my reasoning as to why gold and gold stocks could still be setting up for one of the biggest trades of the year.

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A friend of mine, asked me the other day a very tempting question: why the media Dr. Yahya do not invite you for an interview, or talk show? After all these books  and articles you published? Well,  I said: how can you expect from the media to call me for interview? Firstly, I am not a  Jew to be invited to ALL TV shows. Secondly,   I am a damn Arab, thirdly, I am a damn Palestinian, and fourthly, it is worst of all, I am a [….] Muslim!

With all these stigmas in modern America, you should not ask such a question.  If you are the president of a network, would you invite me to talk about victims of the holocaust who are killing Palestinians on daily basis?  And who are making Palestinian life horrible? Demolish their houses, and kill innocent people, and constructed over than 600 checkpoints as if it is Nazi camp, in apartheid South Africa before freedom emancipation. They claim to secure their occupied land. But I think to cover their frear, and cowardice. But they deny that on everyday basis. They also say: To talk that way about Jews of Israel, is anti-Semitism. In America there are two perceived facts: Jews are not colonizers which I am negating. The second is that the American media is free and unbiased (Owners or otherwise) and have the ability to run the banks, the newspapers, Hollywood in America. And that anti-semitism is gaining ground in the mainstream Americans too.  Which also I am  negating without evidence.

Furthermore, I told my American friend: American media is owned mostly by Jews. I recently have these information about Jews Media control mostly obtained from realjewnews website and wikipedia, and other sites. For example:

His mother is a Jew, and he owns Fox Television, TV Guide, Twentieth Century Fox Studio, Wall Street Journal, New York Post, and The London Times. AKA “Sumner Redstone.” Owner of CBS, MTV, LOGO, (Homosexual TV), Blockbuster Videos, Paramount & DreamWorks Movie studios.  New York born Jew. CEO of Murdoch’s News Corporation & Corporate Director for American Express. Principal holder of Time-Warner Corporation. Media venues include NBC Television, Turner Broadcasting, CNN, Warner/Chappell Music, AOL, & Time Magazine . President and CEO of NBC Television. Former CEO of Walt Disney Company. Principal holder of Capital Cites which owns ABC Television. Present owner of The Tornante Company which develops companies in the Media sector. Owner of US News & World Report and the New York Daily. CEO & Chairman of the Board of the Washington Post which owns Newsweek Magazine. He is the son of Katherine Meyer Graham, whose father, Eugene Meyer, a wealthy Jewish financier, purchased the Washington Post in 1933. Donald E Graham now oversees the Washington Post operation.

War On Terror and control America’s Foreign Policy through the Jewish Lobby by the Jewish Media whose executives attend the same synagogues & country clubs as the Jewish Lobby leaders. They also their Media control to destroying Christian morality & consciousness in America. Thus they gain control over the subverted masses. Furthermore, according to the same site: realjewsnews, Jews  promoteZionismA perfect example of this is the Jewish Media’s blackout of Presidential candidate Ron Paul who spoke against military & financial aid to Israel. And finally, he accused jews for promoting through their Media-control wish to create a disordered society so as to dominate the masses through their highly-organized and monolithic institutions.

After all these giants of American media you asked: why the American media did not invite me?  I think I don’t want to be famous. Period. Gennis book of recordsPhyllis Chesler, the Jewish fiminist read this, she will add to her judgment that all Muslims are like their leaders and that Islam provide safe net for the Arab leaders in this case. Because in her writings she’s famous to use generalization of  judgment about  personal experiences to all religion followers, and religion itself. Unless she talks about Afghans according to her awful experience

Big Sis’ indoctrination telescreens to be installed in the private cars of Americans. (Subscribe to Nightly News Today!) www.prisonplanet.tv
Video Rating: 4 / 5

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I grew up in the sixties. Yeah, I was just a little kid, but I remember quite a bit of what was going on. I guess I have a pretty good memory. I watched a war in Vietnam on television. I watched protesters take to the streets. I saw a lot of violence on the evening news. Back then, the reporters got their feet dirty. They got down into the trenches and filmed for us, at great personal risk, footage of police bashing and breaking peaceful protesters, and then footage of those once peaceful protestors finally fighting back. It took much testicular fortitude, to borrow a phrase, to take on such a job. At least that is how it seems to me as I look back on things.

I also remember Watergate. I remember that two reporters, Bob Woodward and Carl Bernstein, were heralded as heroes for breaking the Watergate story. That was back when the media had teeth. I do not believe it was completely a free media back then, but it certainly was not as controlled as it is today. Those who have become drunk with power have seemingly managed to neuter the mainstream media. There are those in power who know how to manipulate the information received by the masses and there are those of great influence who seek to control what information the masses receive and what information the masses are kept unaware of. In this way the establishment makes certain it stays the establishment. In this way the media becomes its lapdog, neutered, whimpering, dependent upon its master for survival, and willing to bark incessantly if it senses any intrusion upon the masters private property. The establishment will pat the dog on the head when it does a good job and spank it when it is naughty, sending it to a corner with its tail between its legs.

The mainstream media has lost its significance when it comes to news reporting. It is no longer the watchdog for the people. It is no longer able to report truthfully on government corruption, for it has fallen into bed with those in power and now sleeps peacefully at their feet while the masters plan their treasons against the American people and the Constitution. They are afraid to lose their comfy chairs in the White House press room and so they refuse to ask tough questions and more importantly refuse to investigate claims as they take the word of those in power as gospel. They are, in my humble opinion, just as responsible for the debacle in Iraq as the current administration, for they had ample opportunity to expose the lies and they chose to simply report the Bush administrations claims as if they were fact. Yet that does not seem to matter to a great many Americans as they seem to have forgotten that betrayal among others and continue to trust these propagandists as if we still had an uncompromised press.

With such news services, the masses do not see any real news as it happens. Take, for instance, the recent political conventions just produced by the establishment politicos. They did not want the American people to see any of the protests taking place, and so the only place one could go to find coverage of these very significant events was Youtube. While scores of protesters marched during the DNC they were largely ignored by the mainstream media and a scripted convention brought to you by the established national powers was televised to a mostly unaware public in an attempt to sustain the illusion of party unity they want the masses to believe in. While at the RNC scores of our fellow citizens tried to exercise their God given rights to free speech, dozens inside the convention tried to foment a little bit of drama of their own and thousands gathered a few blocks away to take part in Ron Pauls Rally for the Republic, hardly a peep was heard from the mainstream media as they decided instead to broadcast the meaningless drivel spewing from the mouths of inconsequential statists as they praised another statist named John McCain and his politically correct beauty queen pick for a running mate. In both cases the real news was happening outside, but the lazy, bought and paid for, neutered mainstream media proved once again to be the obedient pets of the state as they reported on only the trivial just like the establishment wanted.

Meanwhile, the states other favorite pets, the police, were and are busy with their own duties to the establishment. Unlike the media, these darlings are able to keep their man bits so that they can maintain their aggressiveness. Many of these unquestioning servants of the powers that be want nothing more than to be able to bash in the heads of some dissidents. Most likely it is only the fear of their violent crimes being exposed by some random blogger who just happens to film them and post it on Youtube that is keeping them from completely losing it and going gonzo on peaceful protesters. Their fellow state pets in the mainstream media certainly are not keeping them in check. Theres even the possibility that the castrati press are frightened of these mad dogs as they have seen their work first hand and do not wish to get caught up in the mayhem should the police be unleashed upon unarmed activists. Recently, I have seen a couple of reports of police brutalizing even some in the press as they chillingly attempted to silence US citizens who tried to exercise their right to peaceably assemble and speak their minds at the RNC. This silencing of the commoners was mostly successful due to the lack of reporting by the mainstream media. The masses remain uninformed and go about their business as if all were normal, mostly unaware that they now live in a police state and that their freedoms they once cherished are no longer respected by that state.

It is the job of these police to be the sheepdogs of the establishment. Using fear and cruelty they manage to keep the sheeple from wandering off on their own. Using extortion and the threats of the justice system they fleece the sheeple and keep them in line. They are keeping the herd together and driving them toward, well, only the shepherd knows where we are being driven and for what purpose. These police are no longer peace officers who are called upon only to keep the peace between individuals, but law enforcement officers called upon to enforce the dictates of a powerful elite regardless of whether their laws are good or bad, or whether they are constitutional or not. Today is police are as adept at keeping the herd together as the best trained sheepdogs, and it seems to me they are patted on their heads and rewarded even when they get a bit too aggressive with the sheep and hurt a few of the herd. The established powers love their sheepdogs and want to be certain the most aggressive rise to the top.

One of the favorite laments of some of these state pets as they arrest someone or write them a citation for some crime that even they don’t think should be a crime is that we should not blame them. They are, after all, not responsible for writing the law, only enforcing it. They are just doing their jobs. We shouldn’t take it personally as we are arrested, handcuffed and thrown in jail. We should not blame those who wrote the citation when we have to take a day off work, waste our time and go and stand before someone calling himself judge, explain our actions which harmed no one and beg him to let us keep our money license dignity freedom. We should not blame our tormenters for tormenting us if that is their job. They’re just doing their job. No thought process going on there. Just doing their job. The last lament of the unprincipled, obedient pet who loves its master and all he provides. Despite knowing what is right, despite the faults of the system set up by the state, these pets chose to do no thinking as they go about their busniness.

These favorite pets of the establishment, the mainstream media and the police, almost seem to be working in concert to hold the common man in check. As our voices grow louder in a collective cry for justice, a return to the principles of our founding fathers, and a show of respect for our rights as sovereign individuals, the police grow more maniacal and the press becomes more silent. There is change brewing in this country, and it is not coming from some presidential candidate. The man on the street is walking on eggshells, and the uncertainty permeating the atmosphere does not help matters. There may come a time when these pets of the establishment have to make some hard decisions, and they may just decide to bite the hands that have fed them. After all, these are fellow human beings I ssssssssam talking about, and when push comes to shove, most human beings will know the difference between right and wrong.

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BY MICHAEL WEBSTER: INVESTIGATIVE REPORTER Oct  1, 2008 at 3:00 PM PDT

We Americans have cowards and self centered fools as our politicians in Washington D.C. because they were aware of the ultimate outcome of such a runaway economy long before it became apparent to the average citizen. The politicians and the mainstream media did a pretty good job of keeping it from us.

According to writer Tony Elliott the bailout is part of the overall scheme by those in power who are directing events for an outcome of their choosing. It is the handful of individuals who some refer to as “The Illuminati.” This elite group of powerful people has been creating and directing events in America and world Society ever since Colonial Days and in modern times as well. They have been responsible for the assassinations of Abraham Lincoln, John Fitzgerald Kennedy and a number of world leaders. This group is also responsible for 9-11 and a host of terrorist acts around the world.

Unfortunately, for the most part mainstream America’s wishes has been shunned. Even though there is a mounting patriotic interest as exemplified by the Ron Paul campaign, Ralph Nader and other independents. But there is still a lot of misunderstanding on the part of mainstream Americans regarding the economy and ultimately our money if not the whole  Illuminati controlled monetary/political system.

None of the created events they have manifested has been in the favor of our citizens. One really big thing they created was the Federal Reserve Bank. A so called federal bank that controls all of our money since 1913 when legislation was passed giving the sometimes called “fed” all the power they needed to control the capital of America.

Other serious questions remain on all of the events the Illuminati have had a hand in such events as the J.F.K assassination and the 911 attack where more questions were raised than were ever answered as to who did it, why and how it was done.

Elliott writes that these created events would not have any unanswered doubts at all if they were legitimate because the proof would be clear-cut. As it is, we are presented with lies that cannot be clearly sorted out because in hiding the true perpetrators and cause they have muddied the water to the point that even the most ill informed and mind busy with day to day living could see through the thin veil of deception.

Again, we have been duped into believing that this Government intervention of the entire financial market was necessary to avoid an outright depression. The actual act of the Federal Government bailing out Wall Street really is necessary to avoid a total catastrophe of bankruptcy of the free financial market, however its plan is again flawed as all its schemes in the past were because we can clearly see the finagling that was going on behind the scenes over the past 8 years that brought us to this situation we now face.

9-11 was a hit to the financial world as The Twin Towers were places where the nucleuses of the world’s financial markets were housed. The 9-11 attacks were the beginning of a series of events that has brought us to the financial crisis we are now facing. This government within the government has painted us with a picture presenting us with an image of being saved by Uncle Sam from disaster, but the reality is the Federal Government will actually own all there is in our existence making us slaves to its whelms whenever it chooses. The Feds influenced the markets out come to what it is now through fear of terrorism on crude oil facilities around the world, embargoes of oil supplies by terrorist supporting countries and a volatile market operating on fears of massive deficits from the unnecessary wars stemming from the 9-11 attacks.

Former president Roosevelt said, “The only thing we have to fear is fear itself.”  The coming economic collapse is something to prepare for, if not fear, for it will be the worst event in our lives with or without the bailout. It will be much worse than the Great Depression and may last much longer.

Bernard von NotHaus known as the Monetary Architect reports that while you hear the word “collapse” often today, rarely is there any real definition as to what happens in a collapse. Well, to paraphrase my presentation at the Silver Summit, the coming Economic Collapse will be a global monetary apocalypse that will mirror the Fall of Rome and include the following:

Just look at these historical experiences: France and the rise of Napoleon in the1800′s, Germany and the rise of Hitler in the 1930′s and China and the rise of Mao in the 1940′s. We are all going to be millionaires… in the same soup line during the coming hyperinflationary depression.

Think this is impossible? Think marshal law and military troops is too extreme? Google, The September 24, 2008, article on Prison Planet By Paul Joseph Watson:

U.S. troops returning from duty in Iraq will be carrying out homeland patrols in America from October 1st in complete violation of Posse Comitatus for the purposes of helping with “civil unrest and crowd control” – which could include dealing with unruly Americans after a complete economic collapse.

This shocking admission was calmly reported on September 8th on the Army Times website that from the beginning of next month the 3rd Infantry Division’s 1st Brigade Combat Team “Will be under the day-to-day control of U.S. Army North, the Army service component of Northern Command, as an on-call federal response force for natural or manmade emergencies and disasters, including terrorist attacks.”

The unit would also be deployed to deal with hostile crowds of Americans in the aftermath of a massive economic depression, potential food riots and race riots, if one defines the term “crowd control” to match its reasonably applicable scenarios.

The open admission that U.S. troops will be involved in law enforcement operations as well as potentially using non-lethal weapons against American citizens is a complete violation of the Posse Comitatus Act and the Insurrection Act, which substantially limit the powers of the federal government to use the military for law enforcement unless under precise and extreme circumstances.

Please click HERE for the complete article.

Financial Bailout is not the answer. It is the problem. It is the government’s way to gain more control. Google an article by Chris Powell on Thursday, September 25, 2008, for the Journal Inquirer in Manchester, Connecticut:

The bad-debt bailout would be the biggest government patronage program in history and would amount to declaring martial law over the U.S. financial system and economy. Even if such martial law is necessary, its implementation should be put in democratic hands — a non-partisan agency with full transparency, statutory standards for its purchases, and close accountability to Congress.

Chris Powell is managing editor of the Journal Inquirer and the Secretary/Treasurer of
Gold Anti-Trust Action (GATA) Committee Inc.

Now I am not usually a doom-and-gloom guy. I developed the Liberty Dollar to bring a real solution to the currency situation that I realized in 1974… some 34 years ago! And for all these years I have strived to bring about a proven, positive, peaceful and profitable solution to our country’s controlled fiat monetary system.

And while I greatly appreciated your support (ala the Choir), at almost every turn there has been an invisible force that has thwarted the Liberty Dollar development and larger use. At first you may think, I mean the government. That is not the case. The government had been amazingly supportive up until the raid. The most disturbing “invisible force” is bunch of traitors who confess to have the very ideals that you think they endorse. Unfortunately, most of the time I found our supposed “leaders” to be vain little men, who were much more interested in maintaining their position than saving the country.

Who are these traitors who have steadfastfully blocked or secretly worked to undermine the world economy.
 

But as America is still addicted to fiat money and big government, there is much to be done. We still need to Change the money to Change the country.

The marketplace is NOT out of silver. Technically, there is not even a shortage of silver. There IS a shortage of fabricated silver, especially one ounce rounds (coins) for the retail market. While some young talking heads would have you believe the sky is falling, silver is plentiful in 1000 oz bars, but nobody wants that; everybody wants one ounce Eagles or generic rounds. Besides love and the world of intangibles, silver still remains the single best item to hold. Period. Inflation is coming and we will see phenomenally higher prices for silver. Just remember in Germany on January 1, 1919, one ounce of silver cost 12 German marks, very much like one ounce cost 12 US dollars not long ago. Four years later, November of 1923, just before Hitler came to power, the same one ounce of silver cost 543 billion marks! Hold on, the world is about to go through hell as it finds it way back to value. “Revaluation” is the word to remember!

And in case you missed Bernard’s First Law of Money: We choose, therefore we are free.

Every day we see a lot more control of the monetary system. The “news” is confusing and will get increasingly confusing. Don’t get confused. Stay with the truth. We are witnessing a global revaluation of money and everything denominated by it. Remember the three stages of truth: First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident. 

Just as I wrap up this bittersweet Aloha Alert and return to Hawaii… comes news from Reuters: Please read this excellent article that validates my 34 year opinion that we are witnessing a global revaluation of the monetary system. I guarantee – anybody who bought silver at per ounce is happy! I guarantee – if you buy and hold gold and silver right now – you will be happy as you watch your net worth double and double and double many times as the world struggles to redefine value and replace the damn good-for-almost-nothing fiat government crap money into real value. Please click HERE for by Jonathan Leff for Reuters, Monday September 29, 2008.

Elliott went on to say this Government Deception was orchestrated and fine-tuned to the point that it made the average American feel great to acquire the massively overinflated housing loans that could never be paid.

Thus, we are in a conundrum now of having the choice of going into a depression or letting the Federal Government own every aspect of our existence.

The long tentacles of this vile creature of deception have not forgotten the rest of the world either. Its influence over all that is financial thus all that is has its sights on world domination and will achieve its goal without opposition unless all free thinking citizens of the world recognize the situation for what is and take a stand and become a true American patriot.

Today we begin with the Rothschilds. The following is taken from a London letter, sent to the Rothschild’s New York operators on commencing business in the U.S.:

The few who can understand the system will be either so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while, on the other hand, that great body of people, mentally incapable of comprehending the tremendous advantage that Capital derives from the system, will bear its burden without complaint and, perhaps, without even suspecting that the system is inimical to their interests.

The “system” being described, as you likely know, is the international banking system. It is one of the oldest and most powerful in the world, as far as systems go.

And the Federal Reserve is dedicated to that system… protecting and preserving it at all costs.

We now have evidence of just how dedicated. Via Bloomberg, it comes to light that “Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak:”

The biggest borrowers from the 97-year-old discount window as the program reached its crisis-era peak were foreign banks, accounting for at least 70 percent of the 0.7 billion borrowed during the week in October 2008 when use of the program surged to a record. The disclosures may stoke a reexamination of the risks posed to U.S. taxpayers by the central bank’s role in global financial markets.

In the heat of the 2008 meltdown, the Federal Reserve offered up huge cash infusions — bailouts in disguise, sometimes in the tens of billions — at a rapid and unprecedented clip. For a long time after, the Fed refused to disclose who those loans were made to, likely on the grounds that people would be upset.

(This isn’t the first time I’ve talked about the Federal Reserve. Sign up for Taipan Daily to receive all of my investment commentary.)

Now we understand why. With details coming to light, we find out a Brussels-and-Paris-based bank tapped the Fed’s discount window for .5 billion. Another Dublin-based bank rang the register for .5 billion.

But the Fed’s most surprising bailout of all was probably that of Arab Banking Corp., majority owned (at the time) by the Central Bank of Libya. Documents further suggest that Arab Banking Corp. went to the Federal Reserve well not once, not twice, but dozens of times.

What a delicious irony. The bombs that we drop on Colonel Gadhafi, in defense of a rebel force that includes al-Qaida fighters, may be taking out equipment and munitions secured with Federal Reserve cash.

Then again, perhaps it’s not ironic at all… but simply a function of how “the system” works…

Texas Rep. Ron Paul was more than a little ticked off at this news. “The American people are going to be outraged when they understand what has been going on,” he said. “What in the world are we doing thinking we can pass out tens of billions of dollars to banks that are overseas?”

But this goes back to the Rothschild’s keen observation, as quoted at the beginning of this piece. Most people can’t be bothered to understand the system at all… and barely suspect where its true motives and interests lie.

On a related note, Taipan Daily reader Paul Y. offers the following in regard to Friday’s “Twinkie economy” analogy:

The Smithsonian has [an] original 1930s Twinkie in its museum. A news article from approximately a year ago stated it had not deteriorated in nearly 80 years of existence.

Likewise, the Fed may just pull off a long existence for the twinkie they have produced.

I am beginning to wonder that with the advent of electronic blips as currency (with only ATMs remaining to spit out quaint reminders of bygone days, ie, greenbacks), if perhaps another still-evolving type of economics is now upon us…. where perhaps, the true medium of exchange is no longer currency…. but something else… something this 40 year, sound-money-favoring banker is just not getting…

I would argue that no, economics is not “evolving” any more than gravity is evolving. The sleight of hand tricks and distracting electronic gizmos may be getting fancier. But factors like supply and demand, the need for savings in order to invest, and productivity as the true origin of wealth, remain exactly the same.

Look to the Rothschilds again. In spite of all the digital enhancements, this is a world they would have easily recognized. Or think back to colorful charlatans like John Law and his Mississippi scheme.

Enterprising men have been playing con games with paper money and credit for centuries, if not millennia. The technique of “coin-clipping,” a form of stealth devaluation of the currency, goes all the way back to Roman times. The technology is advanced, but the game — and its laws — are the same.

The reason they can draw out the game for so long, your humble editor suspects, is because there is such a wide and willing populace of financial slaves ready to be exploited.

The thing that keeps the U.S. economy going — and keeps all economies going really — is real wealth, in the form of hard-earned savings and productivity. There is still a lot of honest labor in the world, along with innovations and upgrades that enhance that wealth still further.

But for those who live by exploiting the system, rather than producing or creating things of value, this wealth is something to siphon off like gasoline from a tank.

Just look at how elderly savers — those with decades of accumulated funds stored in safe, low-yielding debt instruments — are being nickeled and dimed to death by stealth inflation. Look at how small businesses all across America — those who still have to pay taxes by the way — are slowly being bled by increases in raw material costs, fuel costs, local and state tax burdens, and so on.

Think of all the wealth burned up by inflation, by unproductive spending choices, by purchasing power lost or transferred when the value of a dollar is further reduced via tens of billions spewing into the coffers of some far-flung banker’s vault. Who pays for all that?

The savers, the workers, the tax filers… the contributors, business owners and entrepreneurs… in short, all those who contribute real wealth to the pool without fully maximizing the parasitic advantages of “the system” to their benefit.

And so the question of how long it can keep going is another way of asking: How many fleas can sup on a dog before poor Rover falls to his knees… or before the citizenry gets genuinely angry.

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