Inspiration Economy

Silver LIberation Army and the “Million Ounce March”

2011-04-12T15:02:00.000-07:00

Max Keiser’s- Silver Liberation Army and the “Million Ounce March”

April 7, 2011 – Catalyst X Media and Max Keiser are teaming up again to release 10 million, 1/10th ounce silver bullion rounds to the public from the depleting global silver supply. The company will be taking orders on the website created strictly for these precious and limited bullions, and demand is expected to be extremely high based on previous releases.

The design features former Wall Street broker and current broadcaster/journalist Max Keiser and the slogans “Fiat Money Sucks!”, “Inflation is a Crime” and the campaign name “Million Ounce March.” Keiser calls his following the “Silver Liberation Army”, and wants to put silver in the hands of the people.

The last time Max Keiser teamed up with Troy James for silver bullions, the supply sold out within three days prompting the immediate increase in production. The previously launched bullion was incubated from the Alex Jones Show episode on November 11th, 2010. Idea creator Troy James said “This truly shows the demand for the precious metal and that people are seeking change. We are happy to be a part of this history by showing our abilities of creating viral messages to the World.” The first generation rounds have been seen on eBay recently selling as high as $202 for a one ounce silver “Keiser” round.

Max Keiser, while dedicating his likeness and slogans once again, will not be profiting from the silver bullions. “This is the thumb tack that I use to mark how well my message to the World is spreading,” said Keiser. Along with the slogans, this new bullion is in support of Max’s campaign for the Silver Liberation Army that was just announced during Keiser’s recent return visit to the Alex Jones show.

The Silver Liberation Army and the Million Ounce March is another campaign started by Keiser to encourage the public to hedge against inflation by purchasing silver. This trend has been witnessed several times throughout history. Like with everything else, history seems to repeat.

There was communication and slow-delivery problems with the last bullion release but Catalyst X Media’s, President, Jason Springett said “We have figured out all the complicated problems with the communication barriers by hiring a 24-7 bonded call center and sped up the delivery process by retaining a bonded freight forwarding company.” He went on to add that a percentage of the net earnings of the new “Keisers” will go to support Japan’s recovery.

Catalyst X Media (www.catalystxmedia.com) is handling the entire campaign for this release. They specialize in social viral media and guerilla marketing. For more information, contact Catalyst X Media or visit www.silverkeiser.com to see the new rounds.

MaxKeiser
MaxKeiser.com
April 6th, 2011

Bankers Destroy Global Economy by Design to Consolidate Power

2010-05-12T05:53:00.000-07:00

American taxpayers have been freshly liberated of hundreds of billions more dollars as part of the IMF’s new bailout package which is principally going straight to European banks, in addition to the Federal Reserve program to ship U.S. dollars to Europe, in a move that represents little more than a desperate effort to save the Euro and rescue the credibility of economic global governance.

“The Federal Reserve late Sunday opened a program to ship U.S. dollars to Europe in a move to head off a broader financial crisis on the continent,” reports the Associated Press.

“The Fed’s action reopens a program put in place during the 2008 global financial crisis under which dollars are shipped overseas through the foreign central banks. In turn, these central banks can lend the dollars out to banks in their home countries that are in need of dollar funding to prevent the European crisis from spreading further.”

As we reported last time this program was enacted, the Federal Reserve refused to say which foreign banks had received an estimated half a trillion dollars in credit swaps. The program is unconstitutional under Article 1 of the U.S. Constitution which states, “No money shall be drawn from the treasury, but in consequence of appropriations made by law.”

In addition to the credit swap program being re-enacted, the IMF portion of a separate European bailout package amounts to around $287 billion dollars. Since American taxpayers represent around 20 per cent of IMF funding, they will fork out something in the region of $57 billion dollars which which primarily go straight to French and German banks, not to mention the billions more in transfers of wealth that will occur through the Fed’s credit swap program.

“Politicians everywhere applaud this most recent rape of America’s working class, even as communism is now the global ideology,” writes Tyler Durden. “Who needs TheOnion.com when reality is now 10 times more surreal. And the direct recipients of taxpayer generosity: SocGen, AXA, Dexia, CA and all other French and German banks, which right now are all up ~20%.”

But it’s not just American taxpayers who have been looted to save the crumbling facade of the Euro single currency. British taxpayers will be forced to underwrite an estimated £10 billion pounds of the bailout as part of the IMF package.

And all for what? The two primary reasons for the bailout are to rescue ailing confidence in the globalist Euro single currency, which was forced upon European citizens against their will when it was introduced, and to prop up the casino stock markets. Neither of these justifications provide any benefit for the average citizen or the middle class, and yet we are the ones paying for it with our depreciated savings, our evaporating pension funds and our crumbling infrastructure and public services, which are all being forgotten in pursuit of one massive banker bailout after another global economic governance run by the Nazi-founded Bank for International Settlements rests in upholding confidence in the Euro. If the Euro collapses and ceases to exist, which many financial experts are now seriously predicting, then the entire raison d’être for centralized economic planning in pursuit of global governance will be completely discredited. The globalists must save the Euro in order to legitimize future plans for a North American Union single currency which will replace the dollar.

When the dollar sank to alarming lows against other global currencies little over two years ago, we saw none of the same concern or hand-wringing on behalf of the elite as we are seeing for the Euro. That’s because the survival of the dollar is not part of their framework of global economic governance. For all the elite cares, the dollar can crash and burn but rescuing the Euro from the same fate is imperative.

Indeed, it appears as if the chaos in Greece is being deliberately provoked and hyped in order to justify the continued re-alignment and centralization of the entire financial system into fewer globalist hands.

As The Economic Collapse Blog writes today, “Could Greece bring down the entire world economy? Hardly. The truth is that you could remove Greece from the world economy tomorrow and most people would hardly notice. The economy of Greece is only about 2% the size of the United States economy, and it takes in less than 0.1% of U.S. exports. But we are being led to believe that Greece has suddenly become the epicenter of a financial crisis which is going to bring down everything. Could it be that this Greek debt crisis is purposely being hyped and manipulated? Could it be that this Greek debt crisis is yet another example of the “problem, reaction, solution” paradigm that the global elite have employed so many times before?”

“Right now almost all of the governments in the western world operate debt-based economies that rely on ever-inflating amounts of paper money in order to survive. The elite international bankers of the world have made a killing by creating money out of nothing and loaning it to the nations of the world. The interest on those loans is the primary method by which the wealth of the world is slowly transferred into the hands of the ultra-wealthy. When the interest on the loans starts to become too much for a particular nation, they borrow even more money so that they can stay afloat. It is a debt trap that is designed to continue indefinitely. Even the most powerful nations in the world are caught in this debt trap. In fact, most people are absolutely amazed when they learn that it is mathematically impossible to pay off the national debt of the United States. But the United States is far from alone in that respect. Almost all of the other major nations in the world are in the exact same boat.”

It’s horribly ironic that the Euro, global economic governance, and the entire European project was sold under the justification that centralization meant stability, and yet now we are being told that the chaos in Greece is contagious and could spread to Spain, Portugal and Italy unless taxpayers are looted for billions and trillions more.

Reality has proven that centralization of economies under the banner of the EU and the Euro causes economic chaos to go viral. When nearly every country on a single continent uses the same currency, they infect one other with the disease. This is then habitually exploited as an excuse with which to rob taxpayers whose living standards are declining as their currency devalues and their pensions wither on the vine.

Paul Joseph Watson
Prison Planet.com
Monday, May 10, 2010

Brace Yourself for the Coming Gold Shortage

2010-01-29T19:59:00.000-08:00

Zero Hedge
January 29, 2010

Brace yourself for the impending gold shortage. Gold shortage? Yup. With the launch of a flurry of ETF’s devoted to the barbaric relic recently, total ETF holdings have soared well past 60 million ounces worth $65 billion, more than total world production in 2009. The grand Daddy of them all, the SPDR Gold Shares (GLD), now has a staggering $42.7 billion of the yellow metal, making it the second largest ETF by market capitalization, and the fifth largest gold owner in the world.

O V E R I D E THE G O L D R U S H

When gold suffered a hair raising $150, 12% pull back from the all time high in December, I was deluged by traders asking if this was the peak, if it was the final blow off top, and if gold is finished as an asset class. My answers were no, never, and not on your life.

A tidal wave of fiat paper currencies is now flooding the world financial system at an increasingly alarming rate. Obama has not suddenly become a paragon of fiscal restraint. Bernanke has not morphed into a tightwad. When I pull a dollar bill out of my wallet, it’s as limp as ever.

In 2008, South Africa suffered its steepest decline in gold production since 1901, falling 14%, to a mere 232 tons. It now ranks only third in global production of the yellow metal, after China and the US. Severe electricity rationing, a shortage of skilled workers, and more stringent mine safety regulations have been blamed. Choked off credit has frozen the development of new capital intensive deep mines, as it has for everybody else. Rising production costs have driven the global breakeven cost of new gold production up to $500 an ounce.

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UN to produce bullion coins as world currency

2009-12-29T07:25:00.000-08:00

The announcement by the United Nations this week that it will license the minting of silver and gold bullion coins bearing the UN logo may be the button that launches metal prices into orbit.

In its wide-ranging report this fall, the UN Conference on Trade and Development (UNCTAD) stated that the system of currencies and international banking practices within today’s economies were inadequate, and responsible for the present economic crisis. The report advocates that the present monetary system, wherein the dollar acts as the global reserve currency be re-examined “with urgency”.

The UNCTAD Report was the first time a major multinational institution had forwarded such a suggestion or measure, although a number of countries, including Russia and Brazil have supported replacing the dollar as the world's reserve currency. China's central bank chief Zhou Xiaochuan has mentioned that the dollar could become a basket of currencies instead.

The UN commission dismissed such a widening, saying a multiple-country system "may be equally unstable, and not transparent."

The panel is seeking more monetary balance for developing countries, and a means for them to retain their reserves and domestic savings independent of foreign agencies and arrangements.

Panel Chair US economist Joseph Stiglitz, a Nobel economics laureate, has made plain that there was "a growing consensus that there are problems with the dollar reserve system. Developing countries are lending the United States trillions dollars at almost zero interest rates when they have huge needs themselves," Stiglitz stated.

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Jim Rogers: Gold Price to Double in Coming Months

2009-11-28T15:50:00.000-08:00

The rally in gold prices has driven several bullion analysts to frenzied forecasts. Some say gold prices will reach $2,000 per ounce soon. Others are predicting big boom for the yellow metal, saying gold prices will zoom to $5,000 and eventually to even $15,000 per ounce in the years to come.
What is happening in bullion market these days? Yes, agreed that weakening dollar, global economic meltdown, shrinking gold supply and increasing cost of mining gold from the earth are all making gold the most-sought after investment these days. That is also driving the yellow metal prices to record highs.
These days, the biggest gold buyers are not individual customers or families, but global central bankers that are vying with each other to accumulate gold reserves in an attempt to get out of their decades-old dependence on the US dollar as the best asset class. India jumped into the bullion fray to buy 200 tonnes of gold from the

O V E R I D E THE G O L D R U S H

International Monetary Fund (IMF) early this month. Other countries like China, Russia, Brazil and Sri Lanka are frantically trying to accumulate gold reserves.

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India could buy rest of IMF gold on offer

2009-11-25T09:58:00.000-08:00

India is open to buying more gold from the International Monetary Fund following its purchase of 200 tonnes earlier this month, the Financial Chronicle newspaper said on Wednesday, helping to drive gold prices to an all-time high.

But India’s central bank governor, Duvvuri Subbarao, declined to comment on whether the bank would buy more gold from overseas, however.

O V E R I D E THE G O L D R U S H

The paper said that subject to acceptable conditions, India’s central bank could well buy the balance of the initial 403.3 tonnes, or one-eighth of the IMF’s total gold holdings, that the Fund had planned to sell.

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Central Banks Join a New Gold Rush

2009-11-11T10:49:00.000-08:00

The world's central banks are likely to be net buyers of gold in 2009 after two decades of selling, sparking a race among analysts to figure out which country will step in with the next big purchase. Gold Fever

Since 1991, central banks have reduced their gold holdings by 10%. It is a trend that has long been cited as keeping an overhang on gold prices. Developed countries like Switzerland, the U.K. and the Netherlands all sold significant amounts of gold to diversify into other assets in pursuit of higher returns.

O V E R I D E THE G O L D R U S H

India's $6.7 billion purchase of 200 metric tons of gold from the International Monetary Fund last month, absorbing half the amount the IMF put up for sale, was the largest purchase by a central bank in 30 years. Now the market is engaged in a guessing game about which central bank may buy the rest.

Eugen Weinberg, an analyst with Commerzbank AG, is looking to China. Jeff Christian, managing director of CPM Group, a New York-based precious-metal research firm, says other Asian and Middle East countries may be likely candidates.

Wei Benhua, a former Chinese official, was cited by Chinese-language magazine Caijing on Monday as saying China, Brazil or Russia may follow India in buying IMF gold.

India's purchase has thrown central banks back into the spotlight as a potentially powerful force behind gold. Even relatively small changes in the balance of a central bank's reserves could have a drastic impact on gold prices because of the relatively small size of the market.
[Gold Moves Slightly Higher ] Bloomberg News

Gold ingots await shipping at the Argor-Heraeus gold producing and refining plant in Switzerland.

This year could mark a "watershed year," Barclays Capital analyst Suki Cooper said in a note to clients. And, even though central banks mightn't be big buyers of the precious metal, the prospect of added demand may provide key support to the market, they say.

China, Russia and Brazil have tiny holdings of gold relative to their overall foreign reserves, placing them among more likely buyers. China, for example, has just 2% of its reserves in gold, compared with the world average of 10.3%., according to the World Gold Council; and Russia is at 4% and Brazil 0.5%.

The most logical buyers are countries that are running current-account surpluses and that don't have their own domestic gold production, Mr. Christian said.

With a net inflow of dollars and euros every month, central bankers in these countries are worried about the growing exposure to these currencies and have the most desire to diversify into other assets. According to the IMF's International Financial Statistics, Malaysia, Singapore, Kuwait, Saudi Arabia and Venezuela are among other biggest surplus countries behind China and Russia.

Typically, central banks hold a basket of foreign currencies, bonds and precious metals in reserve, using it to make international payments or adjust the value of their domestic currency. The U.S. dollar was considered the preferred reserve currency for decades. But the greenback's recent decline has spooked many countries sitting on big dollar assets.

While China has become an obvious buyer, some analysts say the country is likely to buy production from Chinese mines rather than buy from the IMF. China, the world's largest gold producer, has $2.3 trillion in foreign reserve, with the majority in U.S. Treasury securities.

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Gold hits a record near $1,100

2009-11-04T11:45:00.000-08:00

The precious metal continues to push higher one day after India makes a major purchase, raising bets that demand from central banks will rise.

Gold rose to an all-time high Wednesday amid a weaker dollar and speculation that foreign central banks would increase their purchases of the precious metal.

December gold jumped $10.10 to $1,095 an ounce, after hitting an all-time trading high of $1,096.20 an ounce earlier in the session. On Tuesday, gold closed at a record $1,084.90 an ounce.

Gold, which is up 23% this year, surged on Tuesday after the International Monetary Fund said it sold 200 metric tons of the precious metal to India's central bank.

That sale heightened expectations that more overseas central banks will move to increase their gold holdings.

"To have India step in and buy half of the IMF gold was a big surprise," said Joe Foster, a precious metals analyst at Van Eck Global. "It shows that other central banks are looking to buy gold."

Analysts say many monetary policy makers are looking for ways to reduce their exposure to the U.S. dollar, which is the traditional reserve currency of choice for many foreign central banks.

The dollar, which is down 6% this year, has been pressured by concerns about the growing U.S. budget deficit and rock bottom interest rates.

Traders say gold could emerge as the "new dollar" when it comes to reserve currencies.

Ben Rooney CNN Money

Why the price of gold is rising

2009-10-07T12:17:00.000-07:00

Gold prices have been rising for eight years. The price of gold has hit a new all-time high.

The precious metal reached a record high of $1,048.4 an ounce on Wednesday.

This came a day after having pushed past the previous peak of $1,033.9, which was set in March last year.

WHY HAVE GOLD PRICES REACHED SUCH HIGHS?

There are several factors at play which are leading to demand for gold rising, pushing up the price:

Weakness of the dollar: The greenback is commonly seen as the World's reserve currency. Low interest rates and the US government's massive economic support package have weakened the dollar.

Those who would typically have invested in that currency are looking for other places to put their money where it will, they hope, gain value.

Speculation: A lot of the investment into gold is coming from institutions such as hedge funds - whose money needs to go somewhere.

When banks are offering very low rates of interest on savings - and money can be borrowed extremely cheaply - gold becomes attractive, observers say.

Inflation risk: Gold is seen as a hedge against inflation. Right now, inflation is pretty low, but mounting worries about potential inflation in 2010 may be enticing more investors to the precious metal.

Psychological: Gold has a "primeval" quality argues Adrian Ash of UK online gold exchange, BullionVault.com (which makes money by encouraging people to buy into gold).

He says that while it is essentially a "lump of metal with little purpose", gold tends to hold its value over the long term and is not anchored to the value of cash.

This means that people are drawn to it in uncertain times, Mr Ash adds, though he cautions the price can be volatile.

Seasonal: In Western cultures, individuals buying into gold as an investment remains relatively rare. It is not the kind of advice you are likely to get from a financial adviser, for example.

However, in countries such as China and India, buying gold as in investment is more common. And at this time of year, in the run-up to the Diwali festival, there is a seasonal increase in gold purchases because the metal is traditionally given as a gift.

Indian farmers are also big gold customers at this time of year - seeing it as a way of keep their profits safe after harvest - free from threat of currency fluctuations.

DOES THE PRICE OF GOLD REALLY MATTER?

The reality for most people is that their main contact with Gold is when Spandau Ballet gets played on the radio.

Arguably its biggest role is as a sentiment barometer. A high gold price is an indicator that all is not well with the global economy.

It could be bad news if you are looking for an engagement ring or another piece of jewellery. Higher prices are likely to be passed on to shoppers.

On the other hand, it could be good news if you have gold that you no longer want and could do with making some money.

The rising price has seen an explosion in "scrap gold dealing" - where High Street shops and postal companies will offer to turn the gold into cash.

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New world currency order starts to unfold

2009-09-23T13:42:00.000-07:00

The US dollar still retains a disproportionately large representation in international trade transactions, official reserves and exchange rate regimes.

This is largely due to the many institutional arrangements and incumbencies which remain from the Bretton Woods era of 1944 to 1971 when the gold-linked dollar provided the formal anchor for the world monetary system.

Now, though, this privileged, inherited status of the paper dollar is under threat from the falling relative economic size of the US and its cyclical influence and the scale of the excesses that very privilege has allowed.

Appropriately straddling the turn of the 21st century, the “borrowed” consumer decade of 1997–2007 may come to be regarded as the fin de siecle, marking a critical juncture in the drift away from the US dollar hegemony that has dominated the international financial system since the Bretton Woods regime ended in 1971.

An employee of the Korea Exchange Bank counts parcels of $100 notes for foreign bonds redemption in Seoul. Jo Yong-Hak / Reuters

Instead, we are on the road to a new, multilateral currency order.

As far back as the 1970s, in the earliest years of the floating rate regime when the US dollar declined rapidly in value after its link with gold was formally broken, its hegemony was under threat. But, back then, the US was still a net creditor nation and there was no obvious liquid alternative.

Today, after almost 25 years of deficits, the US is the world’s largest debtor with little chance of shrinking that debt without significant further real depreciation of its currency.

Moreover, while the US financial system is in crisis with increasing public intervention in the system, liquidity and transparency in both industrialised and emerging currency and financial markets, while still imperfect, has greatly increased.

O V E R I D E THE G O L D R U S H

Finally, there is a credible, liquid alternative currency which can at least share the role of global numeraire; the euro.

This backdrop of cyclical and structural pressures presents a challenging environment for even the most established and rigid dollar-peggers such as Hong Kong and the Gulf states. Their pegs have resulted in unprecedented foreign currency reserve accumulation, as warranted exchange rate adjustments are prevented via intervention and capital control.

Before the crisis in the US financial system, higher inflation was also a natural consequence of having to keep monetary policy linked to the US Federal Reserve.

The credit crisis has distracted attention from the disequilibrium of many dollar-pegged currencies around the world, not least as the dollar has recovered significantly in value over the past year. But, as the world emerges from the crisis, US monetary policy may stay expansive for a prolonged period and the dollar may become significantly weakened again.

This could drive a new wedge between the appropriate monetary policy of the dollar-pegged states and the policy of the US, especially as expansive monetary policy may eventually drive up global commodity prices upon which the economic performance of many dollar-pegged states depends.

Domestic price adjustments, in imports, housing, wages and ultimately all goods and services, will be part of the equilibrating costs of a currency peg during such phases as long as the peg is maintained.

If the currency cannot adjust, then prices must do so. Is the cost of ever-increasing phases of inflation or, in other circumstances, potential deflation, worth sustaining unilateral pegs?

In a world of more diversified trade, fading US dominance and ever-larger capital flows, the answer is, increasingly, no.

Boom-bust cycles, redistributions and inequalities of income and purchasing power, damage to non-US export markets and disincentives for investment are all likely to be prevalent.

Economic considerations would thus argue that adjustment of these regimes is justified, not just cyclically but structurally, too.

But what is the alternative? Given the typically high trade dependence and relatively low liquidity of the currencies in question and the ever greater scale of international capital flows it is unlikely the volatility of a perfectly free float, or “benign neglect” of the exchange rate, will be desirable.

Political considerations may dictate simple revaluation of the dollar peg rate as the only viable option to regain control of inflation in the short to medium term.

However, this may invite yet larger scale speculation because any change in these long-established regimes would be likely to weaken their credibility.

A switch to a peg with the only liquid alternative to the dollar – the euro – may be more inappropriate unless the country in question has highly concentrated trade with Europe alone. The appealing alternative in a more diversified world economy is a multilateral currency regime consisting of a blend of major currencies such as the euro and dollar or a much broader trade-weighted basket. This approach is already favoured by several countries which have moved away recently from unilateral pegs including Russia and Kuwait and, with great success, Singapore since 1981. While China has maintained tight control of the yuan’s exchange rate versus the dollar since the unilateral peg was abandoned in 2005, it is ostensibly managed with reference to an unpublished, broader exchange rate basket. Such a multilateral currency world should be a natural consequence of economic growth over time.

But the pace at which the shift takes place will depend, critically, upon the stability of the US and its economic policies. For the first time in modern history, many of today’s largest foreign currency reserve holders are not part of the Group of Seven (G7) industrialised countries. This is important because the G7 has traditionally acted as a co-operative stabilising influence dampening major currency swings with intervention at times of greatest stress and illiquidity and maintaining confidence in the dollar. Today’s largest currency reserve holders may act as stabilisers to preserve their own self interest but no more than that.

As almost 100 countries still use currency pegs in varying forms, mainly versus the US dollar, the procession to a more multilateral exchange rate regime is expected to continue. With increasing diversity of central bank reserve assets and an increasingly diverse range of reserve holders themselves, a tri-polar world with shared primary reserve status between the principal currencies of the Americas, Asia and Europe is likely to take shape.

The euro is increasingly posing that challenge and can expect to see further increases in its global currency reserve share from about 30 per cent now.

And, in the much longer run, China’s yuan may well be both liquid and flexible enough to represent Asia’s primary role in the multilateral system.

Joe Prendergast is the chief currency strategist at Credit Suisse Private Banking

* Last Updated: September 21. 2009 7:17PM UAE / September 21. 2009 3:17PM GMT

Bankster Bailout Did Nothing to Solve Problem, Crisis Now Worse

2009-09-14T07:31:00.000-07:00

Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.

O V E R I D E THE G O L D R U S H

“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”

Stiglitz’s views echo those of former Federal Reserve Chairman Paul Volcker, who has advised President Barack Obama’s administration to curtail the size of banks, and Bank of Israel Governor Stanley Fischer, who suggested last month that governments may want to discourage financial institutions from growing “excessively.”

Mark Deen and David Tweed
Bloomberg
September 13, 2009

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Derivatives Collapse and the China Gold and Silver Markets

2009-09-10T09:14:00.000-07:00

In 2009, China opened up various exchanges for investment in both gold and silver to the Chinese public, which previously was not allowed to invest in gold and silver. The opening of silver exchanges to the Chinese public is the most recent development and was accompanied by a ban on silver exports. The Chinese government is actively touting both gold and silver as an investment to the Chinese public, and with good reason. The yuan, like the dollar and virtually all other paper currencies, with the exception of the euro, are one hundred percent fiat currencies backed by absolutely nothing but government promises which aren’t worth the powder to blow them to hell. Even the euro’s gold backing is pathetic at best. Initially it was a respectable 15%, but the backing is probably now about half of that due to Washington Agreement gold sales and surreptitious gold leasing.




	Chinese government officials are now attempting to protect themselves by dumping large portions of their dollar denominated reserves for gold and silver.

The Chinese government knows that if they do not allow the public to protect their new wealth with gold and silver, a decline in the yuan due to hyperinflation caused by massive government stimulus and an ongoing bailout and subsidization of mass failure in their banking and corporate sectors due to declining exports and trillions of dollars worth of spurious loans undergoing increasing rates of default, loans which often were given to Chinese communist party members, could very well lead to revolution. Chinese government officials are now attempting to protect themselves by dumping large portions of their dollar denominated reserves for gold and silver, as well as for commodities such as copper and oil, and they want the Chinese public to be able to do the same with gold and silver, for maximum possible protection – and, more importantly, for avoidance of revolution. We believe that the Chinese government has acted far too late, but it’s better than doing nothing. We also applaud their attempt to protect the wealth of their people, even though it is self-serving.

On the other hand, our Shadow Government, which runs our official government, is doing precisely the opposite, discouraging the US public from owning gold and silver. This contrary position of our Shadow Government, which is run by the Puppet Masters who pull the marionette strings attached to Obama & Company, and to our totally bogus Congress, who collectively now sport the lowest approval ratings in American history, is due mainly to two factors. First, they lack the ancient wisdom of the Chinese acquired over several millennia. Chinese survival skills are far better than those of our illustrious Illuminists. And second, the Puppet Masters are actively seeking to destroy the US middle class to pave the way for a one world Orwellian police state of feudality. Remember, a strong and vibrant US is the main obstacle to world government. Our evil Shadow Government would do well to follow the Chinese example, but they won’t. Apparently, the sound of a guillotine, or of a trap door opening, fascinates them.

Now, suddenly, we hear that China is considering walking away from responsibility on certain OTC derivative contracts held by foreign banks as counterparties, which contracts cover various commodities, in the event that those contracts result in losses to their sovereign wealth funds. You may recall from prior discussions in the IF that these unlisted OTC derivative contracts include massive short positions in both gold and silver, but especially in silver, and are used to back the listed COMEX short positions of the large commercials in both gold and silver. In other words, the CFTC is allowing COMEX commercials to justify their ludicrously concentrated short positions in both gold and silver by backing those positions with contracts about which the CFTC has no direct knowledge, over which they have no regulatory authority thanks to the Commodity Futures Modernization Act, and which the CFTC knows are backed by foreign governments outside the jurisdiction of the US who can renege on those contracts with impunity!!! How’s that for reckless regulation of commodities by the CFTC?! And now everyone’s worst fears are about to be realized as China announces its intention to renege!!!

The majority of the massive concentrated short position in COMEX silver, which short concentration vastly exceeds that of any other commodity on the COMEX in its degree and scope, was first held by the now defunct and eternally bailed AIG, which was little more than a CIA and Mossad bucket shop and money laundering operation. After a totally justified public protest spearheaded by Ted Butler and Eliot Spitzer, the AIG short position in silver was next transferred to Bear Stearns of subprime derivative fame, and then JP Morgan Chase acquired the Bear Stearns silver short legacy in the now famed and nefarious Bear Stearns takedown that was orchestrated by the Buck-Busting-Ben-Bernanke-led Fed and JP Morgan Chase in cahoots with our Hanky-Panky-Paulson-led Treasury Department, which at that time guaranteed loans made by the NY Fed to JP Morgan Chase – without recourse. We wonder if these miscreants did not also arrange for the surreptitious taxpayer guarantee of the imploding position in silver shorts inherited by JP Morgan Chase from Bear Stearns??? No wonder silver got blasted last year! Paying off on such a guarantee would have been very embarrassing to say the least, and you can bet the Chinese communist party members with their massive sovereign wealth fund holdings of OTC silver shorts were on the sidelines calling for a silver takedown after suffering a massive collective coronary as silver blew through $20 an ounce! It all makes perfect sense now.

These two developments, namely the Chinese government’s promotion of gold and silver to its public as an investment, along with its intention to renege on its OTC derivative contracts covering certain commodities, are obviously interrelated. If you are going to ask your public to invest in gold and silver in a massive way in order to save both your and their bacon, while at the same time diversifying a goodly portion of your trillions worth of dollar-denominated paper assets into physical gold and silver, you might expect that this would put massive upward pressure on gold and silver prices. But if you also had massive holdings of short positions in OTC derivative contracts covering both gold and silver, would you not be shooting yourself in the foot?!!! So now we can understand why the Chinese have decided to renege. Otherwise, they are caught in a trap!

If the Chinese government pushes to bail out of dollar-denominated paper assets by plowing these assets into purchases of physical gold and silver, and then proceeds to ask their public to do the same, they will suffer massive losses on the OTC derivative contracts, totally defeating the whole purpose for diversifying into precious metals. This trap was intentionally set for them by the Illuminati in their never ending battle to suppress gold and silver prices. Your government, both shadow and official, lured the Chinese into writing OTC gold and silver short contracts ostensibly to hedge domestic precious metals production, but most likely to take advantage of planned gold and silver takedowns, and then used those contracts as a form of extortion against them to prevent them from diversifying out of the dollar and into gold and silver, among other assets. They probably told the Chinese that they were going to do a big takedown of gold and silver, and that they could greatly profit from these short positions and at the same time protect the value of their domestic precious metals production. Then Meredith Whitney pulled the plug on Citibank subprime assets, and the great bailouts and monetizations began, along with hyperinflation and a commodity boom powered by massive injections of money and credit by the Fed to the big legacy banks, the “anointed,” in order to save bank balance sheets.

Apparently the US government forgot to mention these upcoming events and salient facts to the Chinese and now the Chinese have understandably decided to renege. Basically, the Chinese are saying: Up your nose with a rubber hose!

So now the COMEX gold and silver commercial shorts, the owners of the COMEX exchange, and all the past CFTC officials who allowed this nefarious paper fraud in gold and silver to rise to new criminal heights based on bogus backing by unregulated derivative contracts written and guaranteed by an often contentious and even hostile foreign government, are all doing double shots in their knickers. If the very angry, and very duped, Chinese renege, the entire COMEX is going down, big-time baby!!! The whole system is about to blow if the Chinese renege on these contracts!!! We wonder what the Chinese want in return for not reneging! Whatever it is, we can guarantee you that the US government is not going to like it very much.

Without the Chinese OTC derivative backing, all COMEX gold and silver positions would be totally naked. That is because COMEX inventory reports for both gold and silver are a total fairytale fraud. Despite many hundreds of requests for physical delivery which were satisfied over the course of many months, the gold and silver inventories reported by COMEX have remained unchanged. The COMEX even had to enlist the help of the ECB and the Canadian mint to satisfy those requests for delivery, thereby demonstrating that what the COMEX reports as inventory is nothing but a phantasm. We recommend that any and all COMEX gold and silver positions be abandoned as being outright naked and fraudulent.

Take physical delivery of your gold and silver bullion from COMEX if they have any, or take your ETF share in lieu of physical delivery and convert it into bullion immediately, and take physical possession of it. Do not trust any bank, any mint or any ETF or pooled fund to hold your gold and silver. Otherwise you potentially face a total loss of principal

When the COMEX goes down in a blaze of glory, which is now inevitable, everyone who owns any ETF gold and silver shares, and especially those who have received these shares in settlement of their imploding COMEX contracts, are going to ask for physical delivery from the ETF’s because all confidence will be lost in the system. Then comes the implosion of the ETF Ponzi schemes as everyone finds out that not only did the COMEX have no gold or silver to back its contracts, but that all the gold and silver ETF’s were nothing more than gold and silver naked-shorting, leasing and price suppression schemes. We now predict that the requests for physical delivery from the ETF’s will far exceed what they planned for, and further that the whole nefarious scheme will be exposed as being a Madoff-like Ponzi scheme, because their touted gold and silver bullion holdings have all been sold off, leased or otherwise encumbered.

In fact, the gold and silver being promised as backing for the holders of ETF shares may be the same gold and silver that is used to back COMEX futures contracts. The ETF’s may well be leasing their gold and silver to the COMEX, which may then be handing it out to settle COMEX physical demands for delivery. Well guess what – you can’t both own the same gold and silver at the same time! Now the COMEX has dropped that pretext, after sucking the ETF’s dry, and they now hand you ETF shares backed by what may well turn out to be non-existent gold and silver! The cartel couldn’t screw the ETF shareholders any further, so now they are screwing the COMEX investors as well. We therefore recommend the abandonment of all pooled accounts held by ETF’s, mints and any gold and silver dealers that are not on our recommended list, as being potential investment scams. If any dealer offers to hold your gold and silver for you in return for a paper promise instead of physically delivering it to you, just tell them thanks, but no thanks. Many dealers may be depending on paper gold and silver themselves to cover their gold and silver promises to their customers, so if this paper gold and silver evaporates, so will your dealer’s promises. This whole group of cartel henchmen-con-artists from the Illuminist cabal could easily get caught in a failure to deliver known as a commercial signal failure. The gold and silver shorts will completely implode if this occurs, and the Chinese strategy to renege on its OTC gold and silver shorts could well be the catalyst that brings such a cataclysm to fruition. Then, when gold and silver skyrocket as the shorts implode, only those who took physical possession of gold and silver, or who own gold and silver producer shares, will profit, while those holding futures contracts, ETF shares, mint certificates and precious metal derivatives will watch their contracts and shares go up in smoke like a Mission Impossible tape. That is because the major exchanges, sponsors and counterparties will go bankrupt, and you will have nothing left to go after to satisfy your paper promises.

The magnitude of this paper gold and silver scam will even exceed that of the Madoff Ponzi scheme. The Stanford scam will look like chump change by comparison. You should own only physical gold and silver, which is in your possession. The only paper gold and silver you should own are the producer shares, period. All futures contracts, ETF shares and mint certificates are now potentially bottomless capital loss pits.

We note how the Chinese gold and silver OTC shorts have hardly been mentioned by the fane-stream media outlets. The fane-stream media outlets are only talking about the OTC oil longs that the Chinese placed to lock in, and place a ceiling over, the cost of the oil they import as oil skyrocketed last year, on which they are now losing their shirts in the aftermath of the cartel-orchestrated oil takedown. The Illuminati, much of whose power lies in their big oil ownership interests, hammered oil down from $147 dollars a barrel to $32 a barrel in order to suppress alternative, greener and more efficient sources of energy, as well as to kill off the smaller producers who don’t enjoy the same economies of scale as the big oil companies. Even today, oil is still less than half of its previous high more than a year later, and this has the Chinese hopping mad.

The media has focused on the Chinese long side of OTC oil derivatives, and has suppressed the news about their short side of OTC gold and silver derivatives, because the Illuminati, who own all the fane-stream media outlets, know just how explosive this news could be for gold and silver, and for them and their cabal, a gold and silver rally is the biggest of all no-no’s. The Illuminati allowed the news to leak on the oil derivatives, because they believe they can patch up the resulting problems for the much larger oil market, but the gold and silver markets are far too small and volatile for the cartel to be able to control the potential fallout, and as far as the US branch of the Illuminati is concerned, gold and silver must be suppressed at all costs because rallies in gold and silver expose the vulnerability of their seat of power, namely, the reserve status of the US dollar and the status of the US treasury bond as the ultimate safe-haven.

The implications of the Chinese abandonment of their responsibility under derivative contracts are nothing short of tremendous and the entire derivatives market could collapse. Once derivative players understand that any person or entity powerful enough to thumb their noses at the owner of the other end of a derivative contract can do so with impunity, the whole derivative market will go into a major uproar and will become completely unviable.

Everyone, including most of the major sovereign wealth funds, has figured out that they have been played for suckers by the big Illuminist legacy banks, who sell them these derivatives under false pretenses, and then via the Plunge Protection Team, financed with tens of billions of dollars worth of liquidity from the Fed’s repo pool, manipulates the markets worldwide such that the Illuminist legacy banks end up on the profitable side of the derivative contracts. Those foreign nations who are in an economically, politically and militarily strong position are going to renege on any significant losses they suffer in the derivatives market because such losses are the result of fraud, deceit, illegal manipulation and Illuminist blundering. These foreign nations are as mad as hornets and could very well tell the Illuminati’s anointed legacy banks to take their derivatives and stick them where the sun don’t shine!!! We don’t think the Illuminists counted on this happening so soon.

The US branch of the Illuminist cabal has been trying to keep Chinese losses on their OTC commodity derivatives under control with lots of price manipulation in gold, silver and oil in an attempt to make up for past fraud and blundering. In any case, the Chinese don’t care if their derivative losses were the result of Illuminist fraud, or just plain blundering. They simply are not going to pay! No wonder Bernanke, Paulson and now Geithner have been running back and forth to China so often. And you can bet there are a host of other nations with the same issues who were sold a bill of goods. Wait until interest rates skyrocket and the carnage starts on the interest rate swaps and the parties on the losing end of these derivatives tell the big “anointed” legacy banks to stuff it, to the tune of tens of trillions of dollars. The evil Illuminati, our would-be masters of the universe, are about to get bagged, stuffed and mounted!

If the Chinese government and the Chinese public go on a gold and silver investment binge, and Americans sit idly by like bozos as dumb as a box of rocks and continue to ignore gold and silver, all we can tell you is that you had better start learning Mandarin and teaching it to your children as well. China will recover very quickly from this disaster if it avoids revolution, as will the other major gold holder, India, and you will be in depression for two decades, if you do not end up living in FEMA detention/reeducation/death camps first. If you want to survive the coming disaster, turn off the boob tube, put the beer down and run to your phone to order some gold and silver. This will turn up the heat on the Fed as rising gold and silver prices will show them for the frauds they are, and add impetus to the movement to audit the Fed and end its reign of terror forever.

And we might add the reminder that Fort Knox is freaking empty and your dollars are 100% fiat, so don’t sit there watching NFL games. Get off the couch, order some gold and silver, and start making up for the loss of our national gold!!!

Always remember, he who has the gold makes the rules. Speaking of which, we thought that we would comment on two situations that illustrate this principle perfectly.

First case in point: You might note that although Germany wants out of the euro in the worst way, they have a really big problem. They entrusted their national gold to the US government. What a monumental mistake that was. And now its national gold is freaking gone, along with the rest of the US gold, which has all been stolen, sold, leased or otherwise encumbered. That means that Germans would be forced to leave the euro, which has at least some measure of gold backing, for the old German mark, which due to the theft of all of Germany’s gold, would now be totally fiat except for the gold which Germany has on deposit with the ECB, some of which may have been sold as well, which is small compared to what they had on reserve with the US Treasury. So now we see what is holding the European Union together. Until Germany gets its gold back (fat chance), if they revert to their previous currency, the mark, it would be little better than the euro. This is why Germany asked for their gold back and were told to take a hike. Otherwise, the bogus European Union would be immediately dissolved, and the Illuminati will certainly not allow that. This is also a potential reason why the ECB, which takes its lead from Germany and France, has been reticent to increase money and credit in the same fashion as the US Fed. They are deathly afraid of hyperinflation for historical reasons, and now Germany has come to the realization that they are naked and that they lack any protection against the ravages of a profligate monetary policy whatsoever. Talk about international monetary extortion! We may end up in a replay of World War II if this continues. How is the German government going to explain this boner to the German public? Perhaps the German people will end up having their own version of the Nuremberg trials, where the current and past German politicians who allowed their gold to be stolen by the US government get to play the part of the Nazi prisoners on trial, complete with a walk to the gallows.

Second case in point: You might note that the Gulf Cooperation Council (GCC), which is comprised of the Persian Gulf states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, in recent years attempted to break their pegs to the dollar and to start a new common central bank which would issue a new single currency that would be pegged to a basket of currencies, with a 2010 deadline. Then suddenly, their 2010 deadline got pushed back indefinitely in June of 2008, presumably because their economies had been destabilized by unexpected, very large increases in inflation. But they also had another problem, they had little gold physically in their home countries to back their existing currencies, much less a new single GCC currency. Then suddenly we get word that the GCC states have requested that all their physical gold bullion in the UK and in the US be returned to them for storage closer to home, probably in Dubai and its newly constructed gold vaults. They want the gold bullion under their futures contracts with the COMEX and London Metals Exchange (LME) to be physically delivered to them for storage in Dubai. Well, we have some rather bad news for them: Good luck, suckers!!! The GCC countries did the second most stupid thing in the world. They entrusted their gold holdings to the naked short ridden COMEX and LME. At least they can say that the Germans took the grand prize for stupidity, entrusting their gold to the US government and its gold suppressing machine. So now, if they break their dollar pegs, they will have totally fiat currencies, and if they have a single GCC currency, it will also be 100% fiat, just like the German mark would be. They would be wiped out by hyperinflation in a nanosecond. So they are now stuck in the dollar until it collapses, all because they trusted in paper gold. What idiots. Some of the richest people in the world apparently are getting the worst advice in the world. You would think they could afford to obtain better advice than that. Now they are consulting with the Germans, who are the same idiots that trusted their national gold to the US government. Talk about the blind leading the blind! Do they really think that the US is going to allow them to break their dollar pegs, and topple the reserve status of the dollar, the seat of US power, before the Illuminati are ready? Do you really think that the COMEX and LME would deliver the gold even if they had it, which they most certainly do not, when this could potentially empower the GCC to topple the dollar? Do you really think that the COMEX and LME are going to own up to a failure of delivery and send gold and silver to the moon, and the Illuminati into a collective coronary? Go ahead and just try to break the COMEX and LME and see what happens! Your undersea cables will be cut (again), the Dome of the Rock will be blown to pieces and a new Jewish Temple will be erected over its burning remnants courtesy of the US government which will pay for the whole thing, and if you really tick them off, they might just nuke Mecca and start the war they need to take us out of depression! Remember, the Illuminati are satanic trillionaires. They are a group of megalomaniacal, homicidal psychopaths who will stop at nothing to destroy anyone who gets in their way, and, we might add, they have most of the gold in the world to back up their threats!

And now a new gold vault has been opened in Hong Kong near the airport, designed after the Swiss model, and Hong Kong has asked its London gold depositories, probably the LME, to send its gold bullion holdings over to Hong Kong for storage there. You just can’t make this stuff up! Sounds like they don’t trust London with their gold as China sets up various gold investment vehicles for the Chinese public. The Chinese want physical gold, not paper promises from London, to back their citizens’ investments in gold. Again we say, good luck! But China will certainly get priority over Germany and the GCC countries when it comes to rationing what little gold is left due to their tremendous creditor clout and military and economic might.

Gold will continue to trickle out of New York, Chicago and London at a snails pace until the Illuminati are good and ready to blow the lid off gold. Remember, the Illuminati themselves, via their own personal Swiss and offshore accounts, own much of the world’s gold, so skyrocketing gold prices to them are a good thing, as long as they have had adequate opportunity to diversify out of dollar-denominated assets and to milk the power they possess by virtue of the reserve status of the dollar, the safe-haven status of the US treasury bond and the Fed’s ability to print money out of thin air. If any country attempts to force the issue before the Illuminati are ready, all hell is going to break loose. They will not go down quietly, you can rest assured about that. The financial community may soon find its own version of a Mad Max world. Stock markets around the world could well be the next major casualty. This will be the Illuminati’s way of saying: back off, or we’ll wipe you out.

We believe that based on all the foregoing pressures, the best the Illuminati can hope for is a controlled explosion in gold and silver where they take them up a notch at a time. But their worst nightmare could take place if everyone gangs up on them and exposes their nefarious schemes to the world at large, and stops conspiring with them to screw the investing public. On the other hand, remember that all these countries demanding that their paper gold be converted into bullion and physically delivered to them for safekeeping stand to lose big-time because they failed to do this much earlier. What consolation will it be to them if they expose the fraud and then watch all their paper holdings go up in flames? That will not put any gold bullion into their vaults. They cannot create physical gold out of thin air the way they create their fiat currencies, so the best they can do is to simply retaliate in kind. We see things getting very ugly very quickly, and only the wise who physically possess their precious metals, or who own precious metal producer shares, are going to benefit.

We also believe that if these foreign nations cannot get their hands on physical above-ground gold because they get stuffed by the US-UK gold cartel, the next best thing they could do would be to buy producer shares so they can control below-ground supplies, and then break the gold cartel and send gold and silver, and their newly acquired gold and silver shares, on a moon-shot. This is the best kind of retaliation because everyone wins, and it will send the players in the gold cartel snarling and spitting into hyperspace. This situation could well send producer shares past the Einstein-DeSitter radius at the outermost visible bounds of the universe and into a wormhole leading to another dimension altogether as everyone jumps on the bandwagon. We can’t wait!!! Gold and silver shares will immediately separate from the rest of the pack, which will tank as the dollar and non-resource stocks are slaughtered. Treasury bonds will benefit briefly, and then go down in flames as the dollar descends to its final resting place in fiat money hell.

Here it is, early Tuesday morning, and spot gold has already crossed the 1,000 barrier like it did not even exist to over 1,007+ while silver has soared above 16.75 and narrowed the gold to silver ratio to just below 60 for the first time in many months. Looks like the Chinese announcement to renege on commodity derivative contracts is sending both gold and silver on a tear, especially silver. One, two and three month lease rates for both gold and silver are now all in negative territory, gold for the past week and silver for the past month. This is unprecedented, and it shows you just how desperate the cartel has become. The only way they can lease gold and silver now over the short term is to actually pay people to lease it from them and sell it into the market. Anyone who leases gold and silver right now has to be both a raving psychopath and a total glutton for punishment. Needless to say, all these developments are totally bullish.

On Friday federal regulators seized five more banks in four states, bringing the total for the year to 89. The five banks that the FDIC seized are:

* First Bank of Kansas City, with $16 million in assets and $15 million in deposits.
* Vantus Bank of Sioux City, Iowa, with $458 million in assets and $368 million in deposits.
* InBank, or Oak Forest, Ill. With $212 million in assets and $199 million in deposits.
* Platinum Community Bank of Rolling Meadows, Ill., with $346 million in assets and $305 million in deposits.
* First State Bank of Flagstaff, Ariz., with $105 million in assets and $95 million in deposits.

The FDIC found buyers for all or part of four of the banks but will have to pay out insured deposits from Platinum Community Bank. The takeovers are expected to cost the FDIC insurance fund about $400 million.

According to Washington sources, FDIC officials privately briefed people in the private equity business and other financial firms, this week, that the FDIC will run out of funds by Sept. 15, and will have to dip into the $500 billion credit line from the U.S. Treasury, meaning we’re back to more concealed bailout activity funded by U.S. taxpayers.

President Barack Obama announced a streamlining of rules and procedures intended to make it easier for Americans, particularly those who haven’t been setting aside money in private accounts, to save for retirement.

The changes would streamline the process for small businesses to automatically enroll employees in savings programs, to let employers put payments for unused vacation time into retirement savings and to provide an option for individuals to have federal tax refunds paid as a savings bond.

“Automatic enrollment has made a big difference in participation rates by making it simpler for workers to save,” Obama said in his weekly radio and Internet address. “And that’s why we’re going to expand it to more people.”

Obama announced the changes one day after the Labor Department announced that employers cut 216,000 workers from payrolls in August, sending the jobless rate to a 26-year high, at 9.7 percent. The August pace of job loss “slowed dramatically compared to just a few months ago,” Obama said, which was another sign “that the economy is turning around.”

The changes announced by the president won’t require action by Congress, according to administration officials who briefed reporters on the plan. They are intended to complement initiatives to expand the number of Americans who are saving for retirement through private accounts that were contained in Obama’s budget plan released in February, the officials said.

O V E R I D E THE G O L D R U S H

Top finance officials debated the next steps for the recovering global economy on Friday, with European countries pushing for a crackdown on bankers’ bonuses while the United States stressed the need to boost bank reserves to prevent a repeat of the financial crisis.

Members of the Group of 20 major nations also discussed ways to unwind recent economic stimulus efforts, although all agreed that withdrawing the massive amounts of money injected into the ailing world economy any time soon could risk a double-dip recession.

Finance ministers and central-bank officials from rich and developing countries representing 80 percent of world economic output are convening in London through Saturday amid mounting signs of a modest economic rebound, with Japan, Germany, France and Australia all recording growth in the second quarter. Britain is widely expected to do so in the third quarter.

Senior Oklahoma Senator Jim Inhofe has slammed the current US administration under Obama and called for a reversal of the president’s socialist government polices that have ’stripped America of whatever it has’.

Speaking amongst a gathering of GOP, the Republican Party, supporters on Wednesday, the anti-Obama vocal lawmaker said that unless the opposition minority reclaims authority in Washington’s corridors of power within 16 months, the country would suffer from irredeemable consequences.

“I never dreamed I would see an administration try to disavow all the things that have made this country different from all others,” the outspoken critic of Obama’s ‘over-centralized’ government told in a town hall meeting at the Grove Community Center in Oklahoma.

“I have never seen so many things happening at one time so disheartening to America,” the fervent senator told the enthusiast crowd, adding, “Every institution that has made this country the greatest nation in the world is under attack.”

He flouted Obama’s advocacy of US healthcare system overhaul, the current sticking point between the Democrats and Republicans, which would hammer the $2.5 trillion industry in exchange for providing insurance for around 47 million Americans in the event of a Congressional approval.

He also blasted the White House bid to set Guantanamo Bay ‘terrorists’ free on American soil, saying, “I don’t know why President Obama is obsessed with turning terrorists loose in America.”

Inhofe referred to a presidential decree that would allow 60 to 80 inmates of the notorious Guantanamo detention facilities to go on trial in the US.

The angry legislator went on to slam the US government’s defense policies, and said, “Barack Obama is disarming America” — a reference to Obama’s decisions to diminish the country’s military expenditures and to scrap F-22 fighter jets along with other defense systems.

“Those of you who think like I do, hope this country can hang on another 16 months,” Inhofe concluded.

Obama has drawn relentless fire for his protectionist financial policies that, as opponents maintain, have only generated burgeoning debts and an expanded government in the States.

Only eight months since taking office, the US president’s approval rating has already slipped to around 50 percent due to his handling of the economy, defense and other reform polices.

Federal Reserve officials in their August meeting discussed extending the end-date for purchases of mortgage bonds to minimize any market disruptions, and expressed concern about the pace of a likely economic recovery. A number of policy makers judged that a ‘tapering of agency debt and MBS purchases could be helpful in the future as those programs approach completion. The central bank boosted its mortgage-backed securities and agency-debt programs in March and they are currently scheduled to end in December.

There is no question the stock market is far overpriced and is due for a massive pullback. The number of companies defaulting on debt is at record levels. Over 200 borrowers with debt of $450 billion have defaulted on debt. That beats the record set in 2001.

In late 2007 junk bond default rates were 0.79%. They currently are 8.58%. The record, which we predicted in 1990, was 12.54% in 1991. We expect that number to exceed 15% in 2010.

That leads us to $11 trillion in short-term government debt. The interest on that debt is $340 billion, or a 3.04% rate of interest. Our current president says in ten years $9 billion will be added bringing that debt to $20 trillion. In ten years that is more than $600 billion a year. No nation can survive such debt not to mention mandated payments such as pensions, Social Security, Medicare, Medicaid, etc. That takes the number to over $100 trillion. The debt service will be 30% or more of the budget if nothing is added to debt via shortfalls to mandated programs.

The flipside of maintaining high deficits is that if they are not continued the economy will fall into deep depression. This monetization and debt will eventually take down the bond market. Presently the Fed is keeping the bond market from going lower and keeping interest rates lower. They cannot do that indefinitely. Witness what has begun to happen in the gold and silver markets. The treasury and the Fed eventually lost control.

The undertow is deflationary; there is major worldwide overcapacity and low capacity utilization, high and rising unemployment worldwide, falling real incomes and more ongoing deleveraging going on constantly. What people miss is that deflation is being held at bay by massive money and credit creation. The minute that stops the bottom will fall out and deflation will take over. As a result of the program set in place by G-20 there has been and will continue to be inflation. It is a question of overkill because the central banks never knew when enough is too much. That is why we could easily face hyperinflation.

Massively increasing debt and monetization is a toxic cocktail that will present us with the worst of all worlds. It will push up interest rates and lead to hyperinflation. As rates rise private borrowers will be crowded out by government borrowing. We predict that long-term rates will be substantially higher by the end of 2010. Real rates at higher levels are a real threat to any kind of economic recovery. Worse yet, government shows no sign of cutting spending. They could fix that by ending our wars. Cuts have to be made. The deficit is out of control. If taxes are raised we’ll fall deeper into depression. Thus, part of the solution is simple, stop the wars. Mainline accepted economists do not agree with this formula, because if they espoused this they would lose their jobs. Unless we see major lending by banks or another $2 trillion stimulus package we will fall right back into depression and hyperinflation.

For the last six years the underlying trend has been deflationary and it continues to be so. We are seeing large falls in capacity utilization of 50% in 2nd and 3rd world countries and a 72% rate in Germany and 65% in Japan and the USA. All have high debt levels, falling incomes and spending and no pricing power. German wholesale prices are off 7.8% and in the US 6.8%. Over this period of time the Fed and other central banks have been successful in holding off inflation. The first four years they accomplished this by increasing money supply by 14%. These past two years saw the greatest fiscal and monetary expansion. It shows you how much the price has increased and gives you an idea of how much more it will cost in the future, and how we will evolve into a hyperinflationary condition that will eventually be overwhelmed by deflation. The question really is can they withdraw stimulus to prevent inflation and the answer is no. The financial reality is the system will collapse without the injections of money and credit.

By the end of 2009 the government will have another $2 trillion in debt and the Fed admits to $2 trillion in monetization, with interest rates at zero. Twenty-one percent unemployment sure doesn’t help either. Spending now at 69-1/2% of GDP, off from 72%, is not going to rise again for sometime to come. That was what drove the economy. We see that figure at 64.5% at best over the next couple of years. Incidentally that is the long-term average. Are we to borrow $2 to $3 trillion a year via monetization? We do not think so. Foreigners will be sellers as well. Fifteen million Americans owe more on their houses than that they are worth. Foreclosures are up 32% and bankruptcies 34%, as incomes fall.

As the US trade deficit decreases countries will have less dollars to buy US Treasuries and Agencies.

All the Fed has done is create a debt pyramid that is crushing profits, tax revenue and employment. This will lengthen the depression and make it far more severe.

Few have talked about the increase in federal debt that will be caused by Cap & Trade and healthcare reform and the staggering taxation that will accompany them. The burden of our illegal alien population of 30 million will be put on free medical care, as well as on the road to citizenship.

The current stimulus package of almost $1 trillion has led to 21% unemployment using the official U6 without the birth/death ratio. As we projected in January a new $2 trillion package could well be launched next year. Our bill for interest is now as high annually as is our cost of defense and bogus foreign wars. Generations yet unborn will pay for our financial profligacy. Almost every government program for the past 11 years has been a disaster.

At the rate America is going we will, as we predicted long ago, become a second world country if we do not legislate tariffs on goods and services to level the playing field. If we do not enact such a law American workers will be making $2.00 an hour like the Chinese, Indians and Mexicans. Such an outcome would drop federal tax revenues by 2/3’s from current levels, making debt default certain. As we said prior to the last election with the exception of a handful throw them all out of office. If we do not the only result that can be expected is revolution.

A recent radical report from the UN conference on Trade and Development (UNCTAD) says the system of currencies and capital rules, which bonds the world economy, is not working properly, and was largely responsible for the financial and economic crisis. They continued that the dollar, which acts as the world’s reserve currency, should be replaced.

They call for a new Bretton-Woods type system of managed international exchange rates. The problem is they will produce another fiat currency without gold backing, and that too will go down in flames.

The Treasury sold $38 billion worth of 3-year debt with a bid to cover ratio of 3.02 to 1, which is very good. Foreign and institutional investors accounted for 54% of the sale.

Five more banks failed bringing the total to 89.

June consumer credit fell $15.5 billion and July fell $21.6 billion, or 10.4% or at an annual rate of $2.47 trillion. Loans for big-ticket items fell $15.5 billion in June and $15.4 billion, or an 11.7% drop.

There is general agreement that monetary stimulus cannot be pulled at this juncture. In Europe, the ECB President Mr. Trichet says he has a plan to exit the program of enhanced credit support, but now is not the time. President of the NY Fed, William Dudley, has stated clearly that it is too early to begin a monetary stimulus exit. He said the economy isn’t growing very fast and that we do have a very high unemployment rate. The UK Chancellor of the Exchequer Alistair Darling, the equivalent of our Secretary of the Treasury, says nations should abandon such measures when recovery takes hold. A stronger euro coupled with more general systemic fragilities will keep ECB exit policy stalled.

There is no apparent plan for returning to anything resembling sound money or a more stable monetary backdrop. Mr. Dudley said, “Market expectations are very, very important.” And, orders are emanating from Wall Street – keep the market up at all costs – irrespective of how much inflation is created. Just keep the machine going, so we can keep screwing the public.

Mr. Dudley went on to heap on the garbage in stating, “One can certainly look to the activist Federal Reserve, and other central banks to manipulate the targeted “Fed Funds” rate as a fundamental government intrusion.” The Fed will continue to supply money and credit so lending, speculation leveraging, and investing in risky assets can continue unabated. The system is on the edge of collapse and all Wall Street and banking can think of is getting richer.

As a result of poor judgment the GSE’s Fannie Mae, Freddie Mac, the FHLB, the FHA, VA and Ginnie Mae have accumulated trillions is losses and further risk exposure for American taxpayers to pay for. For years all their entities have been a disaster and government has no plan for disengaging itself from the nation’s mortgage industry. In just the past two years the FHA’s number of insured loans has soared to 23% of market share, up from 2.7%. That increase should be up 30% on the year. Their exposure has gone from a cap of $362,000 mortgages to $729,750. In August the FHA and VA backed 40% of loans for all home sales. All the government is doing is playing musical chairs by moving loans from Fannie and Freddie to FHA, VA and Ginnie Mae. It is a shell game. Almost all mortgage debt is being underwritten by the taxpayer. While this transpires the Fed is monetizing $25 billion of Agency MBS (toxic waste) weekly. We do not see this as effective at all. All those bad loans will again be the responsibility of the taxpayer, as 60% of those loans fall out over the next three years, creating another major crisis. The Fed and Wall Street are fooling no one and not one problem has been solved. This is not the late 1980s. We live now in an overwhelming world of debt. this is far worse.

The Fed and the Treasury have no exit strategy for anything, it’s just shove it off into the future. The residential real estate market is and the commercial sector is becoming a systemic disaster. The people who caused these problems, bankers, Wall Street and government, continue on their merry way just making things worse. Intervention, manipulation, is the order of the day. Once intervention ends, which it must eventually, monetization will end and the economy will collapse. In the mortgage sphere government intends to spin off the large mortgage insurers into little ones. These would be new private companies that would issue mortgage securities again, carrying an explicit government guarantee. The real bad existing loans would be carried by Fannie, Freddie, etc., which is how this all started in the first place. Another disaster in the making, and taxpayers get to pay for it all. This current setup and the new proposed one can only end in bankruptcy. In addition, there is no chance the government will move to exit massive deficit spending and massive debt. The government, the fed, banking and Wall Street are in a box and they cannot get out. The only way they can now sell mortgages is by guaranteeing them, a guarantee that is worthless. As you can see, the free lunch isn’t really free at all. Creditworthiness isn’t an issue. US paper will be ultimately worthless. In the long run the market will want higher interest rates for buying this toxic waste and that is when the boom will be lowered. It is only a matter of time now before foreigners and other pull the plug. Perhaps that is what higher prices on gold and silver are telling us.

Last week the Dow fell 1.1%; S&P 1.2%; the Russell 2000 fell 1.4% and the Nasdaq 100.3%. cyclicals fell 1.3%, as transports gained 1.1%. Consumers fell 1.4%; utilities 1.8%; banks 4.8%; broker/dealers 2.4%; semis 0.5%; Internets fell 0.8%; biotechs 2.4% and high tech was unchanged. Gold bullion surged $39.00 and the HUI Index jumped 12.1%. The dollar fell 0.3% to 78.14.

The 2-year T-bill fell 8 bps to 0.84%, as the 10’s fell 1 bps to 3.44%. the 10-year German bund fell 1 bps to 3.24%.

Freddie Mac’s 30-year fixed rate mortgage was 5.08%, down 6 bps. The 15’s fell 4 bps to 4.54% and one-year ARMs fell 7 bps to 4.62%.

Fed credit expanded $14.4 billion to $2.063 trillion, a record $2.829 trillion. Custody holdings for foreign central banks has been expanding at a 18.4% rate ytd, and was up $425 billion over the past year, or 17.7%.

M2 narrow money supply fell $28.1 billion to $8.282 trillion.

Total money market fund assets fell $20.2 billion to $3.559 trillion. The decline ytd is $272 billion, or 10.5% annualized.

Mortgage bankers are pushing Congress to expand the U.S. government’s support of the market by guaranteeing private-industry home-loan securities and replacing finance companies Fannie Mae and Freddie Mac. The first step builds off the model for Ginnie Mae, the agency that guarantees payments on bonds backed by government-insured mortgages. The second part involves winding down government-seized mortgage buyers Fannie Mae and Freddie Mac and creating ‘two or three’ new privately funded, government-chartered companies to back individual loans. Putting the ‘full faith and credit’ of the U.S. Treasury behind a portion of the $1.8 trillion non-agency mortgage market would help boost a once-dominant form of home-loan financing that almost collapsed in 2007. The infrastructure of Fannie Mae and Freddie Mac should be used as a foundation for the new initiative, the association said… The Mortgage Bankers Association said it advocates a ‘good bank/bad bank resolution’ for the companies. Two or three mortgage credit-guarantor entities should be created to replace the companies. The entities would own and guarantee loans that they then package into bonds. A new agency similar to Ginnie Mae would then guarantee those securities, according to the association’s plan.

U.S. city officials say they expect to face further financial strains because tax collections won’t recover until after the economy emerges from the deepest recession since the Great Depression, a national survey found. Eighty-eight percent of city finance officers said they are less able to cover the cost of running their governments than a year ago, up from 64% a year earlier.

The recession is finally hitting city budgets, with overall city revenues inching down in fiscal 2009 for the first time since 2002. Overall NYC revenues declined by 0.4%, even as expenses rose 2.5%, and city officials expect steep drops in tax collections in the next two years.

Fund of hedge fund assets tumbled by $95 billion, or 14%, in the first six months of 2009, according to a survey by InvestHedge.

Cerberus, the investment group, is barring investors in two new hedge funds from withdrawing money for three years in an effort to avoid a repeat of the large outflows that followed its lossmaking purchases of Chrysler and GMAC.The move to introduce a three-year ‘lock-up’ is rare among hedge funds.

Mystery has surrounded the ship, officially carrying a cargo of timber worth £1.3 million from Finland to Algeria, since its crew first reported a boarding in Swedish waters on July 24 after a raid by 10 armed English-speaking men posing as anti-narcotics police officers.

It was eventually recovered off the coast of west Africa on August 17. Russia has since charged eight men from Estonia, Latvia and Russia with kidnapping and piracy.

Russian officials have said the alleged pirates demanded a $1.5 million ransom but speculation has grown that the freighter was carrying contraband cargo.

Israeli and Russian security sources have questioned The Kremlin’s official explanation, instead arguing that the ship was carrying S-300 missiles, Russia’s most advanced anti-aircraft weapon, while undergoing repairs in the Russian port of Kaliningrad, a notorious Baltic smuggling base.

According to reports, Mossad is said to have briefed the Russian government that the shipment had been sold by former military officers linked to the black market, and Russia then dispatched a naval rescue mission. Those who believe Mossad was involved point to a visit to Moscow by Shimon Peres, Israel’s president, the day after the Arctic Sea was recovered.

Crew members of the Arctic Sea have since told Russian news reporters that they have been told not to disclose “state secrets” further fuelling the speculation.

On this Labor Day weekend, many Californians find themselves more in need of work than a holiday. A report released Sunday says two of five (40%) working-age Californians do not have a job, underscoring the challenges in one of the toughest job markets in decades. A new study has found that the last time employment levels among this group were this low was February 1977.

The study was done by the California Budget Project, a Sacramento-based nonprofit research group that advocates for lower- and middle-income families. The report said that California now has about the same number of jobs as it did nine years ago, when the state was home to 3.3 million fewer working-age people.

California Budget Project executive director Jean Ross recommended Congress adopt a second extension of unemployment insurance benefits. Those checks pay between $200 and $1,800 a month depending on a worker’s previous earnings.

On Friday, the U.S. Labor Department reported that the nation’s jobless rate had climbed to 9.7 percent, the highest since 1983.

The U.S. was displaced by Switzerland as the world’s most-competitive economy after its financial markets were roiled by the worst crises since the Great Depression, the World Economic Forum said today.

The U.S. fell to second position for the first time since the Geneva-based organization began its current index in 2004 as it lost marks for the sophistication of its markets and rising budget deficits. Switzerland was credited for its stability and ability to innovate.

“A number of escalating weaknesses have taken their toll on the U.S. ranking this year,” the study of 133 countries ny the Geneva-based organization said. “Switzerland’s performance has remained relatively stable.”

U6 (Comprehensive or Broad) Unemployment hit 16.8%, a record. The workweek at 33.1 hours is a record low. Aggregate hours worked declined 0.3%. There will be no job growth until hours worked and the workweek increases significantly. The Household Survey showed job losses of 392,000. 9.1million are working part time but want a full time job. One year ago the number was 5.9 million. Teen unemployment of 25.5% is a record.

The ridiculous Net Birth/Death Model fabricated 128,000 jobs. We noted that since January 2008, there is over a 4 million job discrepancy in small business jobs between ADP and BLS.

John Williams: Monthly Payroll Decline Was 300,000, Net of Renewed Seasonal Factor Games John sees total unemployment (U6 plus ‘discouraged’) at 21.1%.

As an aside, the Bureau of Labor Statistics also publishes a number from the Household survey that is comparable to the nonfarm survey (dubbed the population and payroll- adjusted Household number), and on this basis, employment sank — brace yourself — by over 1 million, which is unprecedented. We shall see if the nattering nabobs of positivity discuss that particularly statistic in their post-payroll assessments; we are not exactly holding our breath.

Lost decade for job growth Private sector has net loss in payrolls since 1999, a net loss of 223,000 jobs since August 1999, according to the latest figures from the Bureau of Labor Statistics. Meanwhile, the nation’s population has grown by 33.5 million people. [And BLS has created millions of bogus jobs!]

TrimTabs employment analysis, which uses real-time daily income tax deposits from all U.S. taxpayers to compute employment growth, estimated that the U.S. economy shed 335,000 jobs in August. Over the past year, TrimTabs estimates that a staggering 5.9 million jobs have been lost, amounting to 4.5% of the workforce, up from 4.1% of the workforce at the beginning of summer.

We believe the BLS is underestimating current job losses due to their flawed survey met hodology over the past twelve months, the BLS has revised their job loss estimates up a whopping 648,000, or 12.5% to 5.83 million from a preliminary estimate of 5.18 million.

During an economic downturn, the BLS habitually underestimates job losses because their survey methodology is incapable of picking up rapid changes in economic growth. Real-time daily income tax deposits, however, react instantly to changes in employment levels, making this data a much better measure of real-time employment.

This past month, the BLS added 118,000 jobs to their non-seasonally adjusted survey data as supposedly more new businesses were created than closed. More puzzling still is that throughout this entire recession, with the exception of January 2009, the BLS has added jobs every month due to more businesses supposedly opening their doors versus closing their doors. We find this impossible to believe considering the current recession is the worst economic downturn since the Great Depression. http://www.trimtabs.com/site/index.php

Fla. Unemployment Borrowing May Top $1 Billion – Florida has become the 19th state to borrow money to keep unemployment benefits flowing after the trust fund ran dry. http://www.propublica.org/feature/fla -unemployment-trust-fund-to-borrow-billions-831

Nearly 90 percent of all new home loans are funded or guaranteed by taxpayers — has far-reaching consequences for prospective home buyers and taxpayers.

At the same time, taxpayers are on the hook for most of the loans that are still being made if they go bad. And they are also on the line for any losses in the massive portfolios of old loans at Fannie Mae and Freddie Mac, which own or back more than $5 trillion in mortgages.

There is growing evidence that many loans being guaranteed by the government have a significant risk of defaulting. Delinquencies are spiking. And the Federal Housing Administration, another source of government support for home loans, is quickly eating through its financial cushion as losses mount.

The outlay has already reached about $1 trillion over the past year and is rising. During that time, the government has pumped more money into the mortgage market than has been spent on Medicare or

Social Security or the defense budget, more even than Washington has paid to bail out banks and other struggling companies.

Meanwhile, there are concerns that banks’ reluctance to confess in full to needed writedowns, estimated by the International Monetary Fund at about $2,700bn, means that balance sheets will start the next cycle still soiled. Why aren’t the big banks being forced to take the write downs that regional and community banks are being forced to swallow? Yeah, we all know why.

Transcripts and taped conversations of actions that took place in 2007, included in the commission’s case, reveal the secretive workings of high-frequency trading, a fast-growing Wall Street business that is suddenly drawing scrutiny in Washington. Critics say this high-speed form of computerized trading, which is used in a wide range of financial markets, enables its practitioners to profit at other investors’ expense.

Traders in the Chicago office of Optiver openly talked among themselves of “whacking” and “bullying up” the price of oil. But when called to account by officials of the New York Mercantile Exchange, they described their actions as just “providing liquidity.”

More prison sentences may renew financial credibility – How many financiers do you think ended up in jail after America’s Savings and Loan scandals? The answer can be found in a fascinating old report from the United States Department of Justice.

According to some of its records, between 1990 and 1995 no fewer than 1,852 S&L officials were prosecuted, and 1,072 placed behind bars. Another 2,558 bankers were also jailed, often for offences, which were S&L-linked too. Yet, thus far, very few prison terms have been handed out. For sure, there have been a few high-profile dramas. Bernard Madoff is one, obvious, example.

David Walker sounds like a modern-day Paul Revere as he warns about the country’s perilous future. “We suffer from a fiscal cancer,” he tells a meeting of the National Taxpayers Union, the nation’s oldest anti-tax lobby. “Our off balance sheet obligations associated with Social Security and Medicare put us in a $56 trillion financial hole—and that’s before the recession was officially declared last year. America now owes more than Americans are worth—and the gap is growing!”

Mr. Walker identifies the disease as having a basic cause: “Washington is totally out of touch and out of control,” he sighs. “There is political courage there, but there is far more political careerism and people dodging real solutions.” He identifies entrenched incumbency as a real obstacle to change. “Members of Congress ensure they have gerrymandered seats where they pick the voters rather than the voters picking them and then they pass out money to special interests who then make sure they have so much money that no one can easily challenge them,” he laments. He believes gerrymandering should be curbed and term limits imposed if for no other reason than to inject some new blood into the system. On campaign finance, he supports a narrow constitutional amendment that would bar congressional candidates from accepting contributions from people who can’t vote for them: “If people can’t vote in a district not their own, should we allow them to spend unlimited money on behalf of someone across the country?”

In particular, the authors, economists Charles Rowley of George Mason University and Nathanael Smith of the Locke Institute, claim that the White House’s plans to pour hundreds of billions of dollars of cash into the economy will undermine it in the long run. They say that by employing deficit spending and increased state intervention President Obama will ultimately hamper the long-term growth potential of the US economy and may risk delaying full economic recovery by several years.

The study represents a challenge to the widely held view that Keynesian fiscal policies helped the US recover from the Depression, which started in the early 1930s. The authors say: “[Franklin D Roosevelt's] interventionist policies and draconian tax increases delayed full economic recovery by several years by exacerbating a climate of pessimistic expectations that drove down private capital formation and household consumption to unprecedented lows.”

The trend of employment in the U.S. edged lower in August after holding steady for three months, according to a report released Tuesday.

The Conference Board said that its August employment trends index fell 0.1% to 88.1 from 88.2 in July, which was originally reported as 88.3. The August index was down 18.5% from a year ago.

“The flatness of the employment trends index in recent months suggests that we won’t see job growth until the end of the year,” said Gad Levanon, senior economist at the Conference Board.

There was a fall in job openings and temporary employment, the report said.

A forward-looking measure of hiring intentions dipped slightly in the United States even as it improved in many other countries, according to a quarterly survey by Manpower Inc.

The survey offers a hint that jobs in Europe and Asia may recover earlier than in the United States, but it also raises questions about whether such a recovery could be cut short without the support of U.S. consumers, Manpower said.

The global employment services company said its seasonally adjusted U.S. net employment outlook slipped to minus-3 for the fourth quarter, from minus-2 in the prior quarter. A year ago, the index stood at plus-9, according to the survey released on Tuesday.

The index, based on interviews with 28,000 U.S. employers, measures the difference between those who plan to add to their workforce and those who expect to cut staff.

Of 13 U.S. industry sectors, employers in only one — education and health services — were more positive about jobs prospects than they were in the third quarter. Other sectors — like construction, leisure and hospitality, and professional and business services — showed a deteriorating outlook.

U.S. taxpayers are unlikely to recover their $81 billion investment in General Motors Co. and Chrysler Group LLC and were “left in the dark” on specifics of a decision to aid automakers, a congressional panel said.

The Treasury Department should consider placing its GM and Chrysler ownership stakes into an independent trust to prevent “political pressure and government interference,” the Congressional Oversight Panel said in a report today.

“Even if no direct conflict exists, a trust could prevent the use or appearance of political influence in the government’s ownership,” the panel concluded.

The U.S. dollar reached its lowest point against the euro this year due to a myriad of forces including rising global stocks and commodities prices, low interest rates, and investors diversifying out of Treasury debt and into other assets including U.S. stocks with the Dow Jones industrial average approaching 9500 in late afternoon trading.

Stocks in Asia and Europe saw big gains, and gold topped $1,000 an ounce. Oil also gained 4.9%, or $3.31, to $71.33, on the New York Mercantile Exchange, due in part to Goldman Sachs affirming its year-long outlook. By midday trading one euro traded for $1.45, meanwhile the Dollar Index, which tracks the greenback against a basket of currencies, fell to its lowest level since September of 2008.

The global regulatory crackdown in the wake of the financial crisis is likely to cut long-term profitability at US and European investment banks by nearly a third, forcing them to cut bonuses and shed staff, says a study by JPMorgan.

The report, a copy of which has been seen by the FT, takes a deeply pessimistic view of the impact of regulatory changes that include tougher capital rules for trading and a push to trade derivatives on exchanges.

Never before have Wall Street stock analysts diverged more with economists at their own firms over the outlook for earnings in the Standard & Poor’s 500 Index.

Profits for companies in the S&P 500 will rise 25 percent next year, according to the average estimate of more than 1,500 equity analysts tracked by Bloomberg. That’s 10.9 times faster than the expansion in gross domestic product foreseen by 53 economists surveyed last month. The ratio of income to GDP growth is the highest on record and compares with an average of 6.1, based on data compiled by Bloomberg going back 60 years.

Based on the historical relationship of earnings and GDP compiled by Bloomberg since 1949, the U.S. economy would have to expand by 4.1 percent for profit among S&P 500 companies to match analysts prediction for a 25 percent gain in earnings

Hoosier Gov. Mitch Daniels in The WSJ: The Coming Reset in State Government My fellow governors and I are likely facing a permanent reduction in tax revenues. State government finances are a wreck. The drop in tax receipts is the worst in a half century. Fewer than 10 states ended the last fiscal year with significant reserves, and three-fourths have deficits exceeding 10% of their budgets. Only an emergency infusion of printed federal funny money is keeping most state boats afloat right now.

The progressive states that built their enormous public burdens by soaking the wealthy will hit them wall first and hardest.

California, which extracts more than half its income taxes from a fraction of 1% of its citizens, is extreme but hardly alone in its overreliance on a few, highly mobile taxpayers. Both individuals and businesses are fleeing soak-the-rich states already. Those who remain in high-tax states will be making few if any capital gains tax payments in the years to come. Even if the stock market comes roaring back to life, the best it could do is speed the deduction of recent losses.

A top senator is calling for fines of up to $3,800 on families who fail to get medical insurance after a health care overhaul goes into effect. There will be a Constitutional challenge if enacted.

The plan from Democratic Sen. Max Baucus of Montana would make health insurance mandatory, just like auto coverage. It would provide tax credits to help cover the cost for people making up to three times the federal poverty level. That’s about $66,000 for a family of four, and $32,000 for an individual.

“It isn’t as if the fundamentals are better in Europe,” said Jessica Hoversen, a foreign exchange and fixed income futures analyst at MF Global. “There are other factors outside of economic growth taking hold in the market.”

Japan’s special drawing rights holdings hit a record $18.5 billion, from $3 billion in July. SDRs are the currency of the International Monetary Fund and other international institutions. It’s a basket of currencies composed of the dollar, euro, sterling and yen in a fixed weighting determined by the IMF and World Bank every five years.

One of the reasons cited for the rise is an increased in commitment in overseas aid, but Hoversen noted that to a certain degree it speaks to the general demand for the dollar, and that scares the market. “It doesn’t necessarily mean diversification away from the dollar, but there is a heightened sensitivity about the topic,” Hoversen said.

Currency investors have been obsessed with the prospect of central banks diversifying out of the dollar. The fixation has been fueled by meetings under the G20/G8 framework, as well as candid comments from some of the largest reserve managers, namely Russia and China. The prospects of a massive diversification are low though, at least in the short-term, because most of the alternatives, including using SDRs as a global reverse currency are unrealistic.

The three-month London Interbank Offer Rate, commonly known as the Libor, which reached a record low of 30 basis points and that also contributed to the dollar’s slide. “It makes the dollar the cheapest interest rate differential in the G10 on a Libor basis,” Hoversen said.

The dollar’s fall follows a United Nations report released Monday calling for a reduced role of the dollar as the world’s primary reserve currency.

“This is not the first time the U.N. has called for this, but it’s the most recent,” Hoversen said. The report, which was produced by the U.N. conference on Trade and Development, stated that a viable solution to the exchange-rate problem would be a system of managed flexible exchange rates targeting a rate that is consistent with a sustainable current-account position.

“What the U.N. may be trying to do is eliminate global dependence on the dollar,” Hoversen said. “However, more details would be needed on the mechanism for adjustment to judge how it would affect the global currency markets.”

To be sure, the U.S. isn’t solely responsible for the global imbalance. While the U.S. current account deficit is being funded by developing countries, the demand from developed countries is improving their living standards. Meanwhile, developing countries have kept their currencies low in order to stimulate economic growth via their export market, and ultimately change will be required on both sides.

Hoversen also pointed out that curves of the overnight index swaps have Norway and Australia pricing interest rate hikes first. “They gain on the idea the global economy is going to recover,” Hoversen said. “Their central banks have also been more hawkish than other banks.” Commodity-based economies will be on the ground floor of supplying the increased demand. Moreover, Australia and New Zealand will be greater beneficiaries of the Chinese stimulus than other commodity currencies. G20 members also promised to keep fiscal and monetary stimulus running on full cylinders, suggesting an increased amount of risk, Hoversen said.

Bob Chapman
Infowars
September 10, 2009

Momentum ushers gold above $1,000/oz

2009-09-10T06:43:00.000-07:00

Gold powered through the $1,000 per ounce psychological barrier on Tuesday, carried by a wave of pent-up technical momentum and dollar weakness, with some analysts eyeing last year’s record high at $1,030.80.

Some investors were also seeing the spike in gold as a warning signal to stock market bulls and were fretting about the result of central banks and governments pumping billions of dollars into banking systems to boost growth.

Spot gold rose to $1,007.45 an ounce, its highest since March 2008, when bullion touched the $1,030.80 record. It was trading at $1,001.75 an ounce by 1442 GMT (10:42 a.m. EDT), after briefly dipping below $1,000, and versus $993.85 an ounce late in New York on Monday.

Read entire article

UN Says New Currency Is Needed to Fix Broken "Confidence Game"

2009-09-08T11:37:00.000-07:00

Sept. 7 (Bloomberg) -- The dollar’s role in international trade should be reduced by establishing a new currency to protect emerging markets from the “confidence game” of financial speculation, the United Nations said.

UN countries should agree on the creation of a global reserve bank to issue the currency and to monitor the national exchange rates of its members, the Geneva-based UN Conference on Trade and Development said today in a report.

China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency after the financial crisis sparked by the collapse of the U.S. mortgage market led to the worst global recession since World War II. China, the world’s largest holder of dollar reserves, said a supranational currency such as the International Monetary Fund’s special drawing rights, or SDRs, may add stability.

“There’s a much better chance of achieving a stable pattern of exchange rates in a multilaterally-agreed framework for exchange-rate management,” Heiner Flassbeck, co-author of the report and a UNCTAD director, said in an interview from Geneva. “An initiative equivalent to Bretton Woods or the European Monetary System is needed.”

Read Enire Article

Gold, currencies, CNBC, & deficits make us rich?

2009-09-03T08:30:00.000-07:00

Gold and silver are honest money. In a financial turmoil you want to protect your purchasing power. Gold and silver can not be created by the Central Banks, paper money as well as paper gold and paper silver are created ad infinity. This will end in a hyper-inflational spiral, comparable with the days of the Wiemar republic when the German reichsmark went south to zero value. Gold and silver keep their intrinsic value.

1,000 Banks to Fail In Next Two Years: Bank CEO

2009-08-28T06:21:00.000-07:00

The US banking system will lose some 1,000 institutions over the next two years, said John Kanas, whose private equity firm bought BankUnited of Florida in May.

“We’ve already lost 81 this year,” Kanas told CNBC. “The numbers are climbing every day. Many of these institutions nobody’s ever heard of. They're smaller companies.”

Failed banks tend to be smaller and private, which exacerbates the problem for small business borrowers, said Kanas, who became CEO of BankUnited when his firm bought the bank and is the former chairman and CEO of North Fork bank.

“Government money has propped up the very large institutions as a result of the stimulus package,” he said. “There’s really very little lifeline available for the small institutions that are suffering.”

This comes at a time when the FDIC has established new rules on bank sales. Private equity, for instance, would have to hold double the capital of their competitors in order to buy such an institution, said Kanas.

“This will have somewhat of a chilling effect on our participation,” he said. “As a result of having to keep higher capital levels, we’ll see lower prices coming from that sector.”

Of the 81 failed banks this year, two have been successfully acquired by private equity, he said. Kanas’ private equity firm bought UnitedBank, the failed Florida-based bank, from the FDIC in May. Regulators also allowed the sale of IndyMac Bank of California earlier this year.

Check Out World Markets & Futures Trading Now

“We are seeing more people step up and lobby bids in this situation,” he said. “We’re seeing more players mostly as a result of being attracted to the sector. I’m not so sure that will continue now that the rules have been ratchet it up.”

Meanwhile, much of the commercial realty problem resides in the regional and small community banks, said Kanas, because larger banks haven’t fueled that sector in the past.

“The market is expecting about the way we were expecting,” he said. “Unfortunately, we’re not seeing any evidence of a recovery in the real estate market in the southern Florida market,” he said.

By: Natalie Erlich
Writer/Producer

Government vs. Private Enterprise

2009-08-20T05:31:00.000-07:00

Everything the government runs is bankrupt, medicare is broke, medicade is broke, the post office is broke, Amtrak is broke. Social security is a bigger ponzi scheme and a bigger fraud than anything Bernie Madoff ever dreamed of and it's broke. The government consumes wealth. Private industry produces wealth. The government and private enterprise are the opposite. Think about it

This is No Recession: Its a Planned Demolition

2009-08-11T11:27:00.000-07:00

Bernanke has pulled out all the stops.

Credit is not flowing. In fact, credit is contracting. That means things aren’t getting better; they’re getting worse. When credit contracts in a consumer-driven economy, bad things happen. Business investment drops, unemployment soars, earnings plunge, and GDP shrinks. The Fed has spent more than a trillion dollars trying to get consumers to start borrowing again, but without success. The country’s credit engines are grinding to a halt.

Bernanke has increased excess reserves in the banking system by $800 billion, but lending is still slow. The banks are hoarding capital in order to deal with the losses from toxic assets, non performing loans, and a $3.5 trillion commercial real estate bubble that’s following housing into the toilet. That’s why the rate of bank failures is accelerating. 2010 will be even worse; the list is growing. It’s a bloodbath.

The standards for conventional loans have gotten tougher while the pool of qualified credit-worthy borrowers has shrunk. That means less credit flowing into the system. The shadow banking system has been hobbled by the freeze in securitization and only provides a trifling portion of the credit needed to grow the economy. Bernanke’s initiatives haven’t made a bit of difference. Credit continues to shrivel.

The S&P 500 is up 50 percent from its March lows. The financials, retail, materials and industrials are leading the pack. It’s a “Green Shoots” Bear market rally fueled by the Fed’s Quantitative Easing (QE) which is forcing liquidity into the financial system and lifting equities. The same thing happened during the Great Depression. Stocks surged after 1929. Then the prevailing trend took hold and dragged the Dow down 89 percent from its earlier highs. The S&P’s March lows will be tested before the recession is over. Systemwide deleveraging is ongoing. That won’t change.

No one is fooled by the fireworks on Wall Street. Consumer confidence continues to plummet. Everyone knows things are bad. Everyone knows the media is lying. Credit is contracting; the economy’s life’s blood has slowed to a trickle. The economy is headed for a hard landing.

Bernanke has pulled out all the stops. He’s lowered interest rates to zero, backstopped the entire financial system with $13 trillion, propped up insolvent financial institutions and monetized $1 trillion in mortgage-backed securities and US sovereign debt. Nothing has worked. Wages are falling, banks are cutting lines of credit, retirement savings have been slashed in half, and home equity losses continue to mount. Living standards can no longer be bandaged together with VISA or Diners Club cards. Household spending has to fit within one’s salary. That’s why retail, travel, home improvement, luxury items and hotels are all down double-digits. The easy money has dried up.

According to Bloomberg:

Borrowing by U.S. consumers dropped in June for the fifth straight month as the unemployment rate rose, getting loans remained difficult and households put off major purchases. Consumer credit fell $10.3 billion, or 4.92 percent at an annual rate, to $2.5 trillion, according to a Federal Reserve report released today in Washington. Credit dropped by $5.38 billion in May, more than previously estimated. The series of declines is the longest since 1991.

A jobless rate near the highest in 26 years, stagnant wages and falling home values mean consumer spending… will take time to recover even as the recession eases. Incomes fell the most in four years in June as one-time transfer payments from the Obama administration’s stimulus plan dried up, and unemployment is forecast to exceed 10 percent next year before retreating.” (Bloomberg)

What a mess. The Fed has assumed near-dictatorial powers to fight a monster of its own making, and achieved nothing. The real economy is still dead in the water. Bernanke is not getting any traction from his zero-percent interest rates. His monetization program (QE) is just scaring off foreign creditors. On Friday, Marketwatch reported:

“The Federal Reserve will probably allow its $300 billion Treasury-buying program to end over the next six weeks as signs of a housing recovery prompt the central bank to unwind one its most aggressive and unusual interventions into financial markets, big bond dealers say.”

Right. Does anyone believe the housing market is recovering? If so, please check out this chart and keep in mind that, in the first 6 months of 2009, there have already been 1.9 million foreclosures.

The Fed is abandoning the printing presses (presumably) because China told Geithner to stop printing money or they’d sell their US Treasuries. It’s a wake-up call to Bernanke that the power is shifting from Washington to Beijing.

That puts Bernanke in a pickle. If he stops printing; interest rates will skyrocket, stocks will crash and housing prices will tumble. But if he continues QE, China will dump their Treasuries and the greenback will vanish in a poof of smoke. Either way, the malaise in the credit markets will persist and personal consumption will continue to sputter.

The basic problem is that consumers are buried beneath a mountain of debt and have no choice except to curtail their spending and begin to save. Currently, the the ratio of debt to personal disposable income, is 128% just a tad below its all-time high of 133% in 2007. According to the Federal Reserve Bank of San Francisco’s “Economic Letter: US Household Deleveraging and Future Consumption Growth”:

“The combination of higher debt and lower saving enabled personal consumption expenditures to grow faster than disposable income, providing a significant boost to U.S. economic growth over the period. In the long-run, however, consumption cannot grow faster than income because there is an upper limit to how much debt households can service, based on their incomes. For many U.S. households, current debt levels appear too high, as evidenced by the sharp rise in delinquencies and foreclosures in recent years. To achieve a sustainable level of debt relative to income, households may need to undergo a prolonged period of deleveraging, whereby debt is reduced and saving is increased.

"This is No Recession: Its a Planned Demolition Photo Going forward, it seems probable that many U.S. households will reduce their debt. If accomplished through increased saving, the deleveraging process could result in a substantial and prolonged slowdown in consumer spending relative to pre-recession growth rates.” (”U.S. Household Deleveraging and Future Consumption Growth, by Reuven Glick and Kevin J. Lansing, FRBSF Economic Letter”)

A careful reading of the FRBSF’s Economic Letter shows why the economy will not bounce back. It is mathematically impossible. We’ve reached peak credit; consumers have to deleverage and patch their balance sheets. Household wealth has slipped $14 trillion since the crisis began. Home equity has dropped to 41% (a new low) and joblessness is on the rise. By 2011, Duetsche Bank AG predicts that 48 percent of all homeowners with a mortgage will be underwater. As the equity position of homeowners deteriorates, banks will further tighten credit and foreclosures will mushroom.

The executive board of the IMF does not share Wall Street’s rosy view of the future, which is why it issued a memo that stated:

“Directors observed that the crisis will have important implications for the role of the United States in the global economy. The U.S. consumer is unlikely to play the role of global “buyer of last resort”— other regions will need to play an increased role in supporting global growth.”

The United States will not be the emerge as the center of global demand following the recession. Those days are over. The world is changing and the US role is getting smaller. As US markets become less attractive to foreign exporters, the dollar will lose its position as the world’s reserve currency. As goes the dollar, so goes the empire. Want some advice: Learn Mandarin.

SAGGING EMPLOYMENT: A “no new jobs” recovery

July’s employment numbers came in better than expected (negative 247,000) lowering total unemployment from 9.5% to 9.4%. That’s good. Things are getting worse at a slower pace. What’s striking about the BLS report is that there’s no jobs-surge in any sector of the economy. No signs of life. Outsourcing and offshoring are ongoing, and downsizing is the new path to profitability. Businesses everywhere are anticipating weaker demand. The jobs report is a one-off event; a lull in the storm before the layoffs resume.

Unemployment is rising, wages are falling and credit is contracting. In other words, the system is working exactly as designed. All the money is flowing upwards to the gangsters at the top. Here’s an excerpt from a recent Don Monkerud article that sums it all up:

“During eight years of the Bush Administration, the 400 richest Americans, who now own more than the bottom 150 million Americans, increased their net worth by $700 billion. In 2005, the top one percent claimed 22 percent of the national income, while the top ten percent took half of the total income, the largest share since 1928

Over 40 percent of GNP comes from Fortune 500 companies. According to the World Institute for Development Economics Research, the 500 largest conglomerates in the U.S. “control over two-thirds of the business resources, employ two-thirds of the industrial workers, account for 60 percent of the sales, and collect over 70 percent of the profits.”

… In 1955, IRS records indicated the 400 richest people in the country were worth an average $12.6 million, adjusted for inflation. In 2006, the 400 richest increased their average to $263 million, representing an epochal shift of wealth upward in the U.S.” “Wealth Inequality destroys US Ideals”

Working people are not being crushed by accident, but according to plan. It is the way the system is supposed to work. Bernanke knows that sustained demand requires higher wages and a vital middle class. But what does he care. He’s not a public servant. He works for the banks. That’s why the Fed’s monetary policies reflect the goals of the investor class. Bubblenomics is not the way to a strong/sustainable economy, but it is an effective tool for shifting wealth from one class to another. The Fed’s job is to facilitate that objective, which is why the economy is headed for the rocks.

The free market is a sham to conceal the crimes of the rich. Read Taibbi. Read Marx. Karl, not Groucho. The financial meltdown is the logical outcome of the Fed’s monetary policies. That’s why it’s a mistake to call the current slump a “recession”. It’s not. It’s a planned demolition.

Mike Whitney

August 11, 2009

Prosecute the Bankster Crime Syndicate

2009-07-30T11:35:00.000-07:00

Why the Federal Reserve Violates the U.S. Constitution

2009-07-23T07:11:00.000-07:00

Inspired on the book, THE CREATURE FROM JEKYLL ISLAND by G. Edward Griffin, FIAT EMPIRE discusses the effects of the Federal Reserve System on the U.S. economy and explains why the debt-backed "fiat" money it issues is no longer Constitutional. This 60-minute documentary is an excellent primer for the citizen or student who wants to get an understanding of how money is created and why the U.S. government has entered into a partnership with elite Wall Street banks. Featuring Ron Paul, Edwin Vieira, G. Edward Griffin and Ted Baehr.

FIAT EMPIRE is a free public service film, however you can get the Director's Cut (complete with 120-minutes of additional interviews) and/or quantities of DVDs (in the event you wish to disseminate this information to your family, friends and associates). Go to http://www.FiatEmpire.com for higher quality DVDs or go to http://www.FiatEmpire.tv to watch it for free.

Alan Grayson grills Ben Bernanke on Foreign Lending

2009-07-21T16:29:00.000-07:00

Alan Grayson, a Florida Democrat who has been very critical in the past of Fed actions takes it to Bernanke today regarding foreign central bank lending. If the 90 or so Democratic cosponsors of Ron Paul’s HR1207 bill doesn’t convince you that Fed transparency is bipartisan then Grayson’s grilling of Bernanke should.

What I find especially horrid about this is that the U.S. is bankrupt and the Fed is not only printing money and handing it out to U.S. financial institutions, but is handing it out to foreign central banks so they can hand it out to their own financial institutions. Meanwhile the value of the dollar takes more of a hit exacerbating the “hidden” inflation tax on every person in the world who holds dollars.

July 21st, 2009 1:51 pm |
by Marc Gallagher
|

Freedom Watch ...07/15/2009

2009-07-16T07:56:00.000-07:00

Fox News Senior Judicial Correspondent Judge Andrew Napolitano explains why the Federal Reserves latest response to HR 1207 Audit The Fed, audit us and we will raise interest rates and lower bond ratings, is unconstitutional.

In other words the Federal Reserve is directly threatened by HR 1207, Ron Paul, G. Edward Griffin, Lew Rockwell, Peter Schiff, Adam Kokesh, Shelly Roche talk about the latest developments in this 6 part auto play video.

Paul says Fed audit bill means to expose gold price manipulation

2009-07-11T16:55:00.000-07:00

Speaking Wednesday on Judge Andrew Napolitano's "Freedom Watch" program on Fox News, U.S. Rep. Ron Paul, R-Texas, remarked that one of the purposes of his increasingly popular legislation to audit the Federal Reserve is to expose how the Fed has been manipulating the price of gold to support the dollar.

His comment on gold price manipulation comes at 4 minutes and 30 seconds into the interview.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Hyperinflation Nation

2009-07-11T06:18:00.000-07:00

Hyperinflation Nation starring Peter Schiff, Ron Paul, Jim Rogers, Tom Woods, Gerald Celente, and others. Prepare now before the US dollar is worthless.

It Doesn't Actually Exist, FDIC Insurance Fund -

2009-07-09T07:55:00.000-07:00

When FDIC head Shelia Bair says her agency might have to bolster the FDIC's insurance fund with Treasury borrowings to pay for the new spate of bank failures, a lot of us, this 40-year banking veteran included, assumed there's an actual FDIC fund in need of bolstering.

We were wrong. As a former FDIC chairman, Bill Isaac, points out here, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government's general coffers for "spending . . . on missiles, school lunches, water projects, and the like."

The insurance premiums aren't really premiums at all, therefore. They're a tax by another name.

Actually, it's worse than that. The FDIC, persisting in the myth that its fund really is an insurance pool, now proposes to raise the "premiums" it charges banks to make up for the "fund's" coming shortfall. The financially weakest banks will be hit with the biggest tax hikes.

Which makes absolutely no sense. You don't need me to tell you the banking industry is on the ropes. The last thing it needs (or the economy needs, for that matter) is an expense hike that will inhibit banks' ability to rebuild capital, extend new loans, or both. If the FDIC wants to raise its bank tax once the industry has recovered, I suppose that's fine. But to raise taxes on the industry now is perhaps the dumbest thing the agency can possibly do. At the margin, the FDIC will be helping bring about more of the failures it says it wants to prevent.

But this is the government we're talking about, so logic goes out the window. First, the FDIC insists its mythical bank insurance fund exists, when it really doesn't. Then the agency does what it can to run the imaginary fund's finances straight into the ground. Your tax dollars (sorry, "premiums") at work. . . .

Article by Vernon Hill

Is Your Bank Safe? The Feds Take Over 7 More Banks Just Last Week

2009-07-08T12:11:00.000-07:00

Last week Federal Regulators took over another 7 banks, bringing this year’s total to 52. This is already double the number of bank closings from all of last year. FDIC Failed Bank List According to news reports, the FDIC had to pay out over 300 million just to keep these 7 banks from becoming insolvent.

Watch This Shocking 60 Minutes Report

After the stock crash of 1929 and over a thousand bank failures, President Franklin D. Roosevelt and the Congress created the Federal Deposit Insurance Corporation (FDIC) in 1933. The purpose was to provide a federal government guarantee of deposits and maintain stability and public confidence in the banking system of the United States.

From the FDIC Website:

What does FDIC deposit insurance cover?
FDIC insurance covers all types of deposits received at an insured bank, including deposits in checking, NOW, and savings accounts, money market deposit accounts, and time deposits such as certificates of deposit (CDs).

FDIC deposit insurance covers the balance of each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank's closing.

The FDIC does not insure money invested in stocks, mutual funds, life insurance policies, annuities, or municipal securities, even if these investments were bought from an insured bank.

The FDIC does not insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government.

How much insurance coverage does the FDIC provide?The basic insurance amount is $250,000 per depositor, per insured bank.

The $250,000 amount applies to all depositors of an insured bank.

Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank.

Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured.

FDIC Insurance Fact List

My Advice Is To Keep No More Than 25% Of Your Liquid Funds On Deposit At Any One Bank. Sure, you can try and be clever and combine your accounts with a spouse, open trust accounts, an IRA, and push the FDIC coverage to the limit, but why not just use multiple banks? I saw an interview several months ago with a man that lost hundreds of thousands of dollars in IndyMac Bank. He said that he was counseled by the bank on how to structure his accounts so that they would all be insured. He had accounts designated for himself, his wife, his various businesses and corporations, etc… The long and the short of it is that he was told that he lost more than half of his money due to the advice he received from the bank. I had to ask myself why he did not just spread his money out among several different banks? It is also important to remember that the FDIC could run out of money. According to recent reports, the FDIC may soon run out of money. If you believe the talking heads, you should not worry about the FDIC failing since the government will bail them out. I would not be so sure about that. There will come a day when the U.S. government runs out of money, and we are closer to that now than ever before.

Why Keep Much Of Your Money In A Bank At All? There are much better yielding investments that offer much greater safety than bank accounts. A typical brokerage firm such as Charles Schwab provides coverage of up to $500,000 per account through SIPC on your investments. I am going to suggest to you that this may be a great time to have someone review your investments and bank holdings.

Federal Credit Unions And The Banking Crisis. Federal Credit Unions deposits are not insured by the FDIC but by the National Credit Union Share Insurance Fund (NCUSIF). The coverage is similar in amounts to the FDIC ($250,000). Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. I feel no better about Federal Credit Unions than I do about U.S. banks.

Finding Out How Much Trouble Your Bank Is In? Bank Rate Monitor has a free service that rates banks from 1 to 5 stars based on their financial soundness. Just out of curiosity (a few months back), I did a search in Illinois and found 29 banks receiving a safety rating of only one out of five stars! A similar search in the state of Florida revealed more than 40 banks with the lowest safety rating. Wow, did this information turn out to be right on.

How Easy Is It To Collect On FDIC Insurance? Although everyone wants to make it sound like getting your money from a failed bank is no big deal, It may become more and more difficult as additional banks fail. I vividly remember stories of people back in the late 80’s having to wait months to be able to get their money out of a failed bank. So, while the government wants you to just sit back and not worry, my suggestion is that this is a good time to take a close look at where your money is.

Interesting Fact: The FDIC has only enough money in reserves to cover about 2% of all insured deposits! How safe does that make you feel? Let me put this another way; if more than 2% of the banks go under the FDIC will be close behind. Consider this quote from Sheila Bair, Chairman of the FDIC:

“….the deposit insurance fund could become insolvent this year,” Bair wrote in a March 2 letter to the industry.

Agree or disagree, register your comment or advice below.

Last week Federal Regulators took over another 7 banks, brining this year’s total to 52. This is already double the number of bank closings from all of last year. FDIC Failed Bank List According to news reports, the FDIC had to pay out over 300 million just to keep these 7 banks from becoming insolvent.

Bill Federer the Constitution and the Fourth of July - Parts 1- 4

2009-07-04T07:44:00.000-07:00

Alex Jones full interview with WILLIAM J. FEDERER, a nationally known speaker, best-selling author, and president of Amerisearch, Inc., a publishing company dedicated to researching America's noble heritage.

Bill's AMERICAN MINUTE radio feature is broadcast daily across America and by the Internet. http://www.americanminute.com

Peter schiff was right

2009-07-02T17:54:00.000-07:00

This is a set of clips of Peter Schiff from 2006 and 2007 showing his predictions on the weakening economy. It has received nearly 1 million views on YouTube.

Climate Bill Is Transfer Of Wealth To World Government

2009-06-29T11:07:00.000-07:00

During an appearance on MSNBC, political commentator Pat Buchanan correctly defined the “Climate Bill” for what it really is, not just a new tax on the American people, but a complete transfer of power and wealth to a global government that is using the manufactured fear of global warming to grease the skids for total domination

Referring to the passage of the climate bill and global warming in general, Buchanan said that the legislation was passed through the use of fear and that, “More and more scientists are coming forward to say this is a hoax and a scam which is designed to transfer wealth and power from the private sector to the government sector and from the government of the United States to a world government. Which is what we’re going to get in Copenhagen when we get this Kyoto two agreement.”

So this is how the Republic falls

2009-06-19T09:23:00.000-07:00

The very entity responsible for the economic crisis is to be more powerful than congress. Offshore banks "AKA - The Federal Reserve" are in the process of a power grab

The Obama administration’s new regulatory reform plan, which will officially hand the Federal Reserve complete dictatorial control over the U.S. economy, Congressman Ron Paul told MSNBC that the Fed was now more powerful than Congress.

The next faze is a new bank of the world to run all private industry.

Money vs Gold

2009-05-26T14:28:00.000-07:00

The founding fathers warned us our currency was only to be gold and silver. The price of gold has a historical value as the dollar has fluctuated.

Bob Proctor YOUnique Wealth Big Day Mp3

2009-05-26T10:34:00.000-07:00

If you have not listened to this audio from Bob Proctor on
Big Day, it is a good link to share.

http://adjix.com/e5g6

PS Get more BIG DAY INFO,

Click Here

YOUnique Big Day Update

2009-05-26T10:23:00.000-07:00

Here is an update and if you have not become a colleague
yet, I encourage you to contact me nd
let's get your questions answered and get you
positioned so you can promote Big Day in June.

http://YOUniqueWealthTeam.com

This is my corporate site where you can get started. You
will get a site just like this one as part of the YOUnique
Wealth system.

...and learn more on our team blog at
http://adjix.com/me26

Our team is seeing some strong growth and we are going to
be well positioned going into the June Big Day. Compress your
efforts over the next 120 days and lead your team by personally
building.

We are about to introduce a marketing system where you
you will be able to brand yourself and offer to your
business contacts. That is all I can share for now, but I
have not been this excited in years and our team will have
first access.

Just know that I am committed to making sure we have the
tools to build out teams even more effectively.

If you have not listened to this audio from Bob Proctor on
Big Day, it is a good link to share.

http://adjix.com/e5g6

PS If you are not positioned yet, it will take you 5
minutes at http://YOUniqueWealthTeam.com

Be Encouraged,

Mike

Michael J. Melvin
954.325.3559 Direct Phone
http://twitter.com/mikemelvin

Peter Schiff The Schiff Report Video Blog May 21 2009

2009-05-22T09:52:00.000-07:00

Major change in markets -- bonds and dollar both fall with stocks --flight to quality now means flight from dollar and treasuries. This may well be the start of the next leg of the economic collapse --stay tuned. Also more nonsense from government on GMAC and mandatory paid vacations.

A Modern Day Gold Rush

2009-05-21T07:22:00.000-07:00

A modern day gold rush is under way as peoples confidence in currency is fading fast while the price of gold rises, says Adrian Douglas, financial analyst and the director of the Gold Anti-Trust Action Committee.

Audit the Fed, Then End It! 5/18/09

2009-05-19T09:28:00.000-07:00

Ron Paul's HR1207 to audit the Federal Reserve is gathering steam, and a companion bill has been introduced in the Senate (S604). This is Dr. Paul Texas Straight Talk for May 18, 2009.

There is now a piece of legislation HR1207 which if passed would make the Federal Reserve have to report, and be accountable to Congress, something they are not required to do now. A few days ago the Fed purchased 7 billion dollars of Treasury Bonds. Who gave the Fed jurisdiction to spend money which is now the debt of the taxpayers of the United States? The Federal Reserve has become a forth branch of the Federal Government, only without any of the checks & balances or the accountability to the American people. The American Taxpayer is now on the hook for a debt run up by the government, which threatens to make every American a virtual slave for generations to come. Government is no longer controlled by the citizens but by Goldman Sachs. We need to demand an end to the robbery of the people to the enrichment of the Bankers and the Wall St. Barons.

http://www.house.gov/paul
http://CampaignForLiberty.com

The Federal Reserve needs to be abolished, but short of that they need to at least be answerable to the Congress. How is your representative going to vote on HR1207? If you don't know, you should. Now more than ever, if you are not part of the solution, you are part of the problem.

The GOLD dollar

2009-05-18T09:24:00.000-07:00

Presented by Lew Rockwell at "Our Enemy, Inflation," the Mises Circle in Houston, sponsored by Jeremy S. Davis. Recorded Saturday, 24 January 2009.

Freedom Watch w/ Napolitano Ron Paul Lew Rockwell Peter Schiff

2009-05-17T19:03:00.000-07:00

Great content with leaders schooled in Austrian Economics.

NEWS BREAK government bonds are not an asset when government owns them

2009-05-13T18:03:00.000-07:00

Peter Schiff says that President Obama should just read his book instead of the government nonsense.

BOB PROCTOR YOUnique Big Day Launch

2009-05-12T14:08:00.000-07:00

Call the Numbers shown here on Wednesday, May 13th. BIG DAY Calls will be taken place every 2 hours starting noon 13th of May New York time: Call the corresponding numbers! Call YOUnique Wealth Independent Colleague at 954.325.3559 and visit YOUnique Wealth Team today.

Country	Phone Number
United Kingdom:	+44 (0) 161 660 8220
United States:	+1 516 453 0014

1. Select time of call from the list

2. Select the conference call access number for your region & dial

3. If a phone number is not listed for your country please select another country. Where possible make use of Skype credits or phone cards to keep international call charges to a minimum.

4. When prompted enter the ACCESS CODE for that specific call. * Note if you use the incorrect ACCESS CODE for the time of call selected you will not enter conference room. No PIN is required you will be automatically connected to conference room as an attendee

5. The call will commence promptly and duration of each call is approximately 20 minutes

6. Join as many calls as you can by following the above instructions

7. At the completion of the call hang up and contact the person that invited you to the BIG DAY call. Call Mike Melvin at 954.325.3559 or go directly to YOUnique Wealth Team to get positioned.

8. ONE ACCESS CODE per call

YOUnique Wealth Team has commenced its first phase roll out. We encourage you to position yourself for this Global Wealth Epidemic that is already proven in the market place but about to be re-launched to explosive growth with Bob Proctor, Gerry Robert, Philip Judge and Team. Learn more at YOUnique Wealth Team .

Forging Formidable Partnerships

2009-05-08T10:59:00.000-07:00

“A good partnership is complementation and combined strengths when focused on a common purpose.” Listen to Philip Judge speaking on the forging of a world changing Partnership.

“Partnerships enable people to compliment their individual strengths and combine their efforts to achieve far beyond what they would while working alone” says Philip Judge.

YOUnique- Wealth Big Day

2009-05-05T13:53:00.000-07:00

Join us for a Webcast on Thursday May 7th

FRANKFURT 8:00PM – NEW YORK 2:00PM

"YOUnique Wealth Big Day"

UNLEASHING A GLOBAL WEALTH EPIDEMIC

Reserve your Webinar seat now

Check the meeting time in your area WORLD TIME

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Required: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista

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Required: Mac OS® X 10.4 (Tiger®) or newer

"All that a person achieves and all that they fail to achieve is the direct result of their own thoughts." James Allen

The New Revolution...Calling All Patriots

2009-04-25T12:14:00.000-07:00

Encourage your representative to support HR 1207 - the Federal Reserve Transparency Act. The Fed is a private institution and is therefore not subject to normal Governmental Freedom of Information requests, as Bloomberg recently found out.

HR 1207 will help to reveal where the Fed is funneling trillions of dollars of taxpayer's money.

http://www.campaignforliberty.com

www.endthefed.com

www.infowars.com

Ron Paul At Wake Forest 4/20/09

2009-04-25T11:37:00.000-07:00

The message of liberty.
The message of sound money.
The message of limited taxation.

Encourage your representitive to support HR 1207 - the Federal Reserve Transparency Act. The Fed is a private institution and is therefore not subject to normal Governmental Freedom of Information requests, as Bloomberg recently found out.

HR 1207 will help to reveal where the Fed is funnelling trillions of dollars of taxpayer's money.

http://www.campaignforliberty.com

http://endthefed.com

http://infowars.com

End of the Dollar Predicted

2009-04-20T10:14:00.000-07:00

World-renowned gold analyst Alf Field speaking at the
GoldRush 21 conference held in Dawson City, Yukon Canada
on August 7-9 2005.

At the time, he predicted the current crisis and sees
end of the dollar around 2010

THE CURE

The cure must be the creation of a new international monetary system based on the principles of sound money. Sound money requires the removal of the ability of politicians and central bankers to create new money at will.

This is obviously easier said than done.

It is unthinkable that politicians and central bankers will give up their existing sovereign situations without a major fight. That unfortunately means that the world’s economic and financial condition must deteriorate to such dire depths that a point will eventually be reached where a consensus will emerge that something radical must be done about it. One shudders at the thought of the awful economic, financial and social consequences that must occur in order to reach that stage.

UNLEASHING A GLOBAL WEALTH EPIDEMIC

2009-04-16T21:10:00.000-07:00

UNLEASHING A GLOBAL WEALTH EPIDEMIC

While the masses haven't yet heard, YOU have the inside track into what is about to hit the globe.

In the coming months, a massive Wealth Epidemic is being unleashed on the world, and once an epidemic starts there is no way to stop it.

You already know that Bob Proctor's Life Success team has joined forces with JWS™. Now is the time to start preparing yourself to ride the crest of this coming Global Wealth Epidemic. The Epidemic starts on Big Day, May 13th.
"You will want to clear your calendar for this event" says Bob.

Turn up your speakers and click on the photo for your inside track.

Peter Schiff tells over 1000 mortgage brokers they are about to be out of jobs. 11/13/2006

2009-04-15T20:22:00.000-07:00

Raw Footage Of Peter Schiffs' Speech At The Western Regional Mortgage Bankers Association Meeting On

November 13, 2006

(In 2006 Peter Schiff tells over 1000 mortgage brokers they are about to be out of jobs. Watch how he completely nails the coming real estate and mortgage debacle before anyone else even realized it was coming.)

Part 1

Part 2

Part 3

Part 4

Part 5

Part 6

Part 7

Part 8

What is happening right now, why did it happen, what do I do about it

2009-04-15T17:23:00.000-07:00

What is happening right now, why did it happen, what do I do about it?

For more information on Anglo Far East Bullion Company and private vaulted storage located outside the commercial banking system, click here:

Anglo Far East Bullion Company

Learn more about the causes of the current financial crisis, and how to protect yourself with this short video series: What your banker and stockbroker do not understand, or want you to know

Crash Course Revisited

2009-04-15T16:41:00.000-07:00

Financial Crisis Emergency Update 10-18-2008

For more information on Anglo Far East Bullion Company and private vaulted storage located outside the commercial banking system, click here:

Anglo Far East Bullion Company

Learn more about the causes of the current financial crisis, and how to protect yourself with this short video series: What your banker and stockbroker do not understand, or want you to know

Understanding the financial CRISIS

2009-04-15T16:31:00.000-07:00

Audio and Video Clips that will help you understand what is happening, why it is happening, and how to protect yourself.

10-18-2008 Audio Update: Explaining the currently volatility and what to do about it, with special guests Chris Martenson, Philip Judge, and Simon Heapes.

10-10-2008 Audio Update: Why the economy is currently crashing, what caused it, how to protect yourself.

How to position yourself by being part of the economic solution

2009-04-15T13:40:00.000-07:00

How does Joseph Wealth Systems stack up versus other business opportunities?

by Alex Stanczyk

Lets face it, there are a ton of business opportunities a person could take advantage of. So why JWS? Here are a few points as to why JWS stands out to me as a no-brainer:

Low Start up costs.

Most any business a person could start usually has substantial business start up costs associated with it. A McDonalds for example can run as much as $1.5 million. A Subway franchise several hundred thousand. You can take almost any business and show that the barrier to entry in JWS is a very low one.

Low Overhead.

Many business owners will attest that running a business costs money. Sometimes that number can reach to the tens of thousand, hundreds of thousands, or millions per month. The cost of overhead for JWS? Basically the premium on the shekel price (which right now, with gold at $1000.00 is about $150.00). On the flip side, you have the potential to earns tens of thousands per month in JWS depending on the effort you put into it. For an overhead of $150/month I would say thats pretty good.

Strong Cashflow Potential.

What you get out of your JWS business depends 100% on what you put into it, but the advantage of a business like this is that you can generate great recurring, diversified cashflow. When I say diversified I dont just mean a different way to earn income, I mean having the ability to have a business model that allows you to operate globally from day one. For example, I currently have business in multiple countries, if one area or region slows down, my cashflow in JWS is internationally diversified.

No Employees.

For those of you who have owned businesses you know that your employees can be a blessing or a curse. Fact of the matter is, that good people are what build any business no matter what, but the great thing about JWS is you do not have to deal with the rigors and frustrations of taxes, potential lawsuits and liabilities, and on and on when it comes to employees. Every Colleague in JWS is an independent business owner, and we all work as a team.

Global Market.

Our product has a global demand. Gold has been in great demand for over 5000 years, and the great thing is that is not likely to change anytime soon. People all over the world know the value of investing in gold, and some of the strongest economies of the future the people already invest in gold and silver. We are not limited to operating locally, regionally, or nationally. In my opinion, the best business to be in has global attributes.

Our Product Cannot be made Obsolete.

Coming from a technology background I can attest to the advantage of having a timeless product. In technology, you have to constantly upgrade, research, and develop your products or you will be left in the dust. The great thing about gold? There is no technology that can make it obsolete because of its unique attributes.

Does Not Require Your Physical Presence.

One of the best things I like about JWS, is that it does not require me to show up at a physical location each day in order to make my business work. I can be anyplace in the entire world, including the deck of a boat, or on vacation anywhere I choose, and as long as I have an internet connection I can run my business. To me, that is the ultimate indicator of a powerful business model.

This is a savings business model, not a consumption business model.

This is one of the most exciting aspects of JWS. In any other type of MLM, you spend your money and at the end of the day what you have paid for is used up and gone, washed down the drain. That is not to say you do not receive value for what you paid for, many MLM’s have great and useful products, however the fact of the matter is that soap or diet pill will never appreciate in value. Personally I would rather be sitting on a chest of gold pieces that are gaining in value than a garage jam packed full of soap.

Compounding Energy.

One of the most important aspects of JWS is that is utilizes compounding energy. The bottom line is, no matter what kind of business you operate, you will earn far more revenue if you utilize the energy of others to help you. Some are offended by the notion of ‘using’ someone else to help them gain financially, but I would point out that if a person has ever had a job they have participated in this type of arrangement, only on the less benefiting side. I am not saying that if a person has a job they do not benefit, of course they do, however if you think that the employee is benefiting more than the employer I have news for you, if this were true you wouldn't be working there. By definition, you have to make the company or business you work for more money than it pays you, or they wouldn't hire you in the first place. This principle of Compounding Energy is a timeless principle that all wealthy people have used from the dawn of time, and is an absolute requirement to the building of wealth.

In summary, I would challenge a person to compare this business model side by side with any other business model out there and show me a better one. I have owned or operated a dozen businesses in my life time and have served as the CEO of a publicly traded US corporation. I have seen many types of businesses come and go, and in my opinion, you will be hard pressed to find a better model than JWS.

End the Fed

2009-04-09T21:17:00.000-07:00

Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy.

In fact, Congress' constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation's founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.

Why the Meltdown Should Have Surprised No One

2009-04-09T21:03:00.000-07:00

Apart from the obvious financial distress that the current economic crisis has inflicted on most Americans, perhaps one of the more irksome byproducts of the meltdown has been the inescapability of clueless economic blather. It’s bad enough when so-called economists serve up the same Keynesian nonsense that has led us down the current cul-de-sac in the first place. At least those people have some incidental knowledge, however deeply flawed, of basic economic concepts. It’s far worse when political pundits, whose understanding of economics typically comes from Treasury Department talking points, hold forth as if they really know what is going on.

What is Morally Right About Economic Freedom

2009-04-09T20:22:00.000-07:00

Rabbi Daniel Lapin demonstrates once again why he is one of America’s most eloquent speakers. His ability to extract life principle content from the Bible and transmit that truth to his audience in an entertaining manner is powerful for those with ears to hear.

The 2009 Lou Church Memorial Lecture in Religion and Economics, presented by Rabbi Daniel Lapin. Recorded at the annual Austrian Scholars Conference, Ludwig von Mises Institute, 12 March 2009. Includes a Welcome and Introduction by Joseph T. Salerno.

I.O.U.S.A. One Nation. Under Stress. In Debt.

2009-04-04T13:33:00.000-07:00

Do you know about the staggering amount of money - $53 trillion - in financial obligations owed by the federal government to foreign investors and to every single American in the form of pensions, health benefits, Social Security and Medicare? Do you understand what this means for your financial future?

Take Action, visit www.IOUSAtheMovie.com and join us in the Fiscal Wake-Up Movement. Together, we can make American fiscal responsibility a reality.

A revolutionary idea towards accumulating Gold & Silver

2009-04-01T19:16:00.000-07:00

So what should you look for in a gold savings plan?

How about a plan that allows you to save in real gold but at the same time have the possibility to be 'paid to save'. A plan is specially designed to help people in financial circumstances who struggle to pay a large mortgage and have very little real savings.

A plan where you could buy real gold, in the form of a coin, and also spread the good news and have others work with you building leverage, saving their own coins and getting "paid to save".

It struck us as a revolutionary idea. We found a way in which we could compound our time and effort and create a fortune during this wealth transfer. Gold & Silver are an enduring stable value investment. In times of financial turmoil history shows a return towards these tangible assets. We are convinced this is a timely option for the masses. Gold & Silver may be about to increase in value significantly, so now may be the time to join.

If you would like more information, Click on the Gold Coin, and register your email with us where it says "Subscribe For Updates". Watch the video called "Millennium Money Trailer", it explains well the history of gold and the benefit of investing in gold. If you want to be a customer, to buy gold pieces (shekels) at a competitive prices, then click on "Customer Shop".

The distinct advantages of our program are;

1. Outright ownership. By comparison, government issued bullion coins are always the property of the issuing government; the holder is only ever the 'bearer', never the owner. Shekels are non-government issued, mint fresh and un-circulated, issued with their refiner's certificate of fine weight and purity.

2. Stipulated weight and purity, insuring their determined international value small denominations of weight making them liquid and easily trade able

3. Bear an internationally recognized Hallmark, attesting to their internationally reputable purity and minting.

4. Based on the ancient 'shekel'(the world's earliest Hebrew system of weights and measures), and fit the description of religious collectible, further protecting against government confiscation.

5. Fit the description of 'free market commodity' (sometimes referred to as free-market money).

Thanks for visiting. If you require further discussion then phone (954.325.3559), simply contact us or go to our JWS website for more inform

China’s call for a global currency to replace the dollar

2009-04-01T12:15:00.000-07:00

The report comes ahead of the Group of 20 summit of industrial and developing nations in London next week, and as emerging market powerhouses including China and Russia have expressed increasing frustration over their dependence on the U.S. currency.

The U.S. dollar, however, has yet to weaken versus its most widely traded rivals on these reports.

As reported here on March 24, Zhou Xiaochuan, the governor of China’s central bank, has called for scrapping the U.S. dollar as the world’s reserve currency. On March 25, U.S. Rep. Michele Bachmann (R-Minn.) scored Geithner for being deceptive about his true intentions concerning the China proposal. Rep. Bachmann's office issued a release declaring:

"Yesterday, during a Financial Services Committee hearing, I asked Secretary Geithner if he would denounce efforts to move towards a global currency and he answered unequivocally that he would," said Bachmann. "And President Obama gave the nation the same assurances. But just a day later, Secretary Geithner has left the option on the table. I want to know which it is. The American people deserve to know."

Asked today about a currency proposal from China at a Council on Foreign Relations event, Secretary Geithner stated he was open to supporting it. Despite attempts to clarify his remarks later in the day, the unguarded initial response calls into question his true intentions.

Related articles from The New American:

The G20 Push to "Supersize" the IMF

Rooting for World Government

Dropping All Pretenses About “Global Governance”

I am not an alarmist...

2009-03-25T05:22:00.000-07:00

I am not an alarmist, but these training videos are alarming.

The Crash Course

I am passionate about sharing this information about gold, silver and the currency crisis. I shared the following training link over the weekend with a friend named Paul. Paul called me on Monday and said he spent 3 hours going through the information. He was blown away and got positioned with Joseph Wealth Systems. It is that powerful and the education below is worth thousands of dollars to you, whether you decide to partner with us or not. We all need to be very aware of what it happening in the U.S. and around the globe. This video series is so powerful. Share it with everyone you know. We can no longer afford to be frogs in the simmering pot...we need to jump out and take action.

http://www.YOUniquewealthteam.com

This will give you a broad understanding of the overall economic picture and move your financial education forward in a MASSIVE way, with an understanding as to why to buy gold and silver as preparing for a massive shift in wealth. For those of you who live outside the USA, this still applies to you, as inflation in the US has a direct impact on the rest of the world because the US Dollar is the worlds reserve currency.

I warn you ahead of time some of this information may shock you and cause you to re-evaluate alot of what you think about the way the economy works and more importantly what is coming in the future that will impact you. I want to re-enforce that instead of getting upset with the information, remember that we have a solution right
now that many many people are going to need! Understand what is happening in the Economy, why its happening, and what to do about it! Then, call or email me as Paul did. I cannot encourage more to watch this valuable and f*ree training and
share it with others.

http://www.anglofareast.com/crash_course.php

Money, Banking and the Federal Reserve

2009-03-24T21:40:00.000-07:00

Thomas Jefferson and Andrew Jackson understood "The Monster". But to most Americans today, Federal Reserve is just a name on the dollar bill. They have no idea of what the central bank does to the economy, or to their own economic lives; of how and why it was founded and operates; or of the sound money and banking that could end the statism, inflation, and business cycles that the Fed generates.

Dedicated to Murray N. Rothbard, steeped in American history and Austrian economics, and featuring Ron Paul, Joseph Salerno, Hans Hoppe, and Lew Rockwell, this extraordinary new film is the clearest, most compelling explanation ever offered of the Fed, and why curbing it must be our first priority.

"Fraction reserve system is a system borne in inequity and sin
Bankers rule the world take the world away from them, but leave them the power to create money and they will buy it back again"

Sir Josiah Charles Stamp
President Bank Of England

Alan Greenspan is not, we're told, happy about this 42-minute blockbuster. Watch it, and you'll understand why. This is economics and history as they are meant to be: fascinating, informative, and motivating. This movie could change America.

Millennium Money

2009-03-24T21:01:00.000-07:00

The full two hour long presentation of millennium money
featuring Larry Burkett, Chuck Missler and Ron Paul among others

A Provactive Film for our times! "This documentary is more relevant to today than when it was first produced in 1998"! - Franklin Sanders. Winning the 1st place Gold Award at the International Film and Video Festival awards

While there are many such processional "waves" in the recession, one is the lack of integrity in the U.S. monetary system. The United States has defaulted on its financial promises many times in recent history. In 1934, we defaulted on domestic gold redemption. That year, it became illegal for U.S. citizens to own gold. Instead, the government required Americans to turn in their gold, and they were paid $20 in paper money for every ounce of gold they surrendered.

Once the gold was collected, the government raised the price of gold to $35 an ounce. Talk about a lack of integrity. And in 1968, the U.S. defaulted on silver redemption, taking U.S. dollars backed by silver out of circulation. Finally, in 1971, the U.S. defaulted on international gold redemption.

Good As Gold Business Plan

2009-03-24T20:35:00.000-07:00

Good As Gold Business Plan

Download video presentation here
JWS Compensation plan here

YOUnique Wealth Systems is built around a simple business model ;
to provide the systems and opportunity to empower all people to acquire extraordinary wealth.

We have designed a unique wealth creation system that is constructed around three fundamental principles;

tangible savings
in a superior,
non-confiscate able
form

protection of
income
through multiple
income streams

return on
time & labour
multiplied
& compounded

Together, when correctly applied, these principles can lead to extraordinary wealth creation.

You will have easy and direct access to the needed education, support, training, knowledge, facts and history.

Join with us as we bring together a unique blend of replicable business systems, history, education, training resources, track record, and team management and leadership into a powerful, affordable and easy to implement wealth creation system.

PS: Watch this

Why printing more money is bad...you can learn alot from a duck

2009-03-24T19:01:00.000-07:00

The tragedy of this excess of money is that most of the world's workers have to work harder to earn less. This is because the currencies of the world are becoming less and less valuable. Even if workers get pay raises, the boost won't be able to keep pace with declines in the purchasing power of money, increases in expenses such as oil, decreases in the value of homes, declines in the value of stocks, and increases in taxes.

Throw Yourself a Lifeline

As the global economy continues to gyrate, you'll hear more and more people calling for the Federal Reserve to either lower or raise interest rates. The problem is that the Fed has less and less power to do much.

Instead of looking to the Fed to save you, then, I recommend you save yourself by investing in real international money. One way to do so is by purchasing gold and silver.

reviewing economic waves and currency cycles

2009-03-23T19:57:00.000-07:00

Rich Dad

A video produced in January 2008. Mike Maloney of goldsilver,com talks of the coming deflation in 2008 and the following inflation. His foresight was well-founded. Also features Robert Kiyosaki.

Gold verses Dollar

2009-03-23T19:17:00.000-07:00

Gold verses Dollar

The value of the US dollar is dropping like a rock and this video is to show how this is affecting the prices of everything from petrol to milk. This is the first of several videos to show what is really happening to the economy of the United States and why that country is in a lot of trouble financially.

Too Much Money - Robert Kiyosaki

2009-03-23T05:37:00.000-07:00

"As strange as it may seem to the average person, the problem is not a shortage of money -- it's too much money. The world is choking on too many U.S. dollars.

Normally, when a currency gets into trouble as the dollar is now, all the country has to do is raise the interest rates on their bonds and things are fine again. But because of the subprime meltdown, the Federal Reserve can't simply raise or lower interest rates.

In simplified terms, the Fed must keep rates low in order to save the domestic economy. This causes the international economy to dump the dollar by not buying our bonds, which is one reason why the price of gold keeps going up -- it's the true international money. And the rise in its price (and in the price of oil) signals the loss of the purchasing power of the dollar; the world simply doesn't want any more dollars. This is a ripple effect from 1971, when the dollar came off the gold standard. "

These are the comments from Robert as he addresses our money issues. Read More.

Compounding of Time and Effort

2009-03-20T10:34:00.000-07:00

Compounding of Time and Effort

Often people assume only banks understand the mysteries of compounding. But interestingly, compounding one's life and efforts is not new, nor a special secret reserved to the banking or business elite.

Once when asked to name the greatest discovery in human history, Albert Einstein simply replied; "compounding; 'compounding' is the most powerful force in the universe."

"Many people are incorrectly positioned when it comes to 'compounding', but what I am about to share with you offers ordinary people the golden opportunity to be on the right side of compounding, enabling them to acquire extraordinary wealth by compounding their time and efforts."

JP Getty was one of the first people in the world with a fortune over US$1billion. Mr. Getty once said, "I would rather earn 1% of 100 people's efforts than 100% of my own efforts." Wealthy people use the power of compounding time to create true wealth

Since men and women have walked the earth, they have sought to find ways to better leverage their time and capital. Compounding systems of capital and labor can be traced back to the ancient Egypt and Babylon.

Click Here To Learn More
about how to leverage yourself

View the specially designed compound savings pay plan that can, with the correct application, provide maximum compounding of Independent Colleagues time and efforts.

Revisionists have scrubbed our history books

2009-03-17T08:51:00.000-07:00

Everyone needs to be reminded of OUR REAL ROOTS.
Thanks to the author, Mary Jones

Did you know that 52 of the 55 signers of The Declaration of Independence were orthodox, deeply committed Christians?

The other three all believed in the Bible as the divine truth, the God of scripture, and His personal intervention. It is the same congress that formed the American Bible Society. Immediately after creating the Declaration of Independence, the Continental Congress voted to purchase and import 20,000 copies of scripture for the people of this nation.

Patrick Henry, who is called the firebrand of the American Revolution, is still remembered for his words, 'Give me liberty or give me death.' But in current textbooks the context of these words is deleted. Here is what he said:

'An appeal to arms and the God of hosts is all that is left us. But we shall not fight our battle alone. There is a just God that presides over the destinies of nations. The battle sir, is not of the strong alone. Is life so dear or peace so sweet as to be purchased at the price of chains and slavery? Forbid it almighty God. I know not what course others may take, but as for me, give me liberty, or give me death.'

These sentences have been erased from our textbooks.

Was Patrick Henry a Christian? The following year, 1776, he wrote this

It cannot be emphasized too strongly or too often that this great nation was founded not by religionists, but by Christians; not on religion, but on the Gospel of Jesus Christ. For that reason alone, people of other faiths have been afforded freedom of worship here.

Consider these words that Thomas Jefferson wrote on the front of his well- worn Bible:

'I am a Christian, that is to say a disciple of the doctrines of Jesus. I have little doubt that our whole country will soon be rallied to the unity of our Creator and, I hope, to the pure doctrine of Jesus also.'

Consider these words from George Washington, the Father of our Nation, in his farewell speech on September 19, 1796:

'It is impossible to govern the world without God and the Bible. Of all the dispositions and habits that lead to political prosperity, our religion and morality are the indispensable supporters. Let us with caution indulge the supposition that morality can be maintained without religion. Reason and experience both forbid us to expect that our national morality can prevail in exclusion of religious principle.

Was George Washington a Christian? Consider these words from his personal prayer book: 'Oh, eternal and everlasting God, direct my thoughts, words and work. Wash away my sins in the immaculate blood of the lamb and purge my heart by the Holy Spirit. Daily, frame me more and more in the likeness of thy son, Jesus Christ, that living in thy fear, and dying in thy favor, I may in thy appointed time obtain the resurrection of the justified unto eternal life. Bless, O Lord, the whole race of mankind and let the world be filled with the knowledge of thy son, Jesus Christ'
Consider these words by John Adams, our second president, who also served as chairman of the American Bible Society.

In an address to military leaders he said, 'We have no government armed with the power capable of contending with human passions, unbridled by morality and true religion. Our constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.

How about our first Court Justice, John Jay?

He stated that when we select our national leaders, if we are to preserve our Nation, we must select Christians. ' Providence has given to our people the choice of their rulers and it is the duty as well as the privilege and interest of our Christian Nation to select and prefer Christians for their rulers.

John Quincy Adams, son of John Adams, was the sixth U.S. President.
He was also the chairman of the American Bible Society, which he considered his highest and most important role. On July 4, 1821, President Adams said, 'The highest glory of the American Revolution was this: it connected in one indissoluble bond the principles of civil government with the principles of Christianity.

Calvin Coolidge, our 30th President of the United States reaffirmed this truth when he wrote, 'The foundations of our society and our government rest so much on the teachings of the Bible that it would be difficult to support them if faith in these teachings would cease to be practically universal in our country.

In 1782, the United States Congress voted this resolution: 'The congress of the United States recommends and approves the Holy Bible for use in all schools.

William Holmes McGuffey is the author of the McGuffey Reader, which was used for over 100 years in our public schools with over 125 million copies sold until it was stopped in 1963. President Lincoln called him the 'Schoolmaster of the Nation.

Listen to these words of Mr. McGuffey: 'The Christian religion is the religion of our country.
From it are derived our notions on character of God, on the great moral Governor of the universe. On its doctrines are founded the peculiarities of our free institutions. From no source has the author drawn more conspicuously than from the sacred Scriptures. From all these extracts from the Bible I make no apology.

Of the first 108 universities founded in America , 106 were distinctly Christian, including the first. Harvard University, chartered in 1636. In the original Harvard Student Handbook rule number 1 was that students seeking entrance must know Latin and Greek so that they could study the scriptures:

'Let every student be plainly instructed and earnestly pressed to consider well, the main end of his life and studies is, to know God and Jesus Christ, which is eternal life, John 17:3; and therefore to lay Jesus Christ as the only foundation of all sound knowledge and learning. And seeing the Lord only giveth wisdom, let everyone seriously set himself by prayer in secret to seek it of him (Proverbs 2:3).

For over 100 years, more than 50% of all Harvard graduates were pastors!

It is clear from history that the Bible and the Christian faith, were foundational in our educational and judicial system. However in 1947, there was a radical change of direction in the Supreme Court. Here is the prayer that was banished:

'Almighty God, we acknowledge our dependence on Thee. We beg Thy blessings upon us and our parents and our teachers and our country. Amen.

In 1963, the Supreme Court ruled that Bible reading was outlawed as unconstitutional in the public school system. The court offered this justification: 'If portions of the New Testament were read without explanation, they could and have been psychologically harmful to children.'
Bible reading was now unconstitutional , though the Bible was quoted 94 percent of the time by those who wrote our constitution and shaped our Nation and its system of education and justice and government.

In 1965, the Courts denied as unconstitutional the rights of a student in the public school cafeteria to bow his head and pray audibly for his food.

In 1980, Stone vs. Graham outlawed the Ten Commandments in our public schools.
The Supreme Court said this: 'If the posted copies of the Ten Commandments were to have any effect at all, it would be to induce school children to read them. And if they read them, meditated upon them, and perhaps venerated and observed them, this is not a permissible objective.'
Is it not a permissible objective to allow our children to follow the moral principles of the Ten Commandments?

James Madison, the primary author of the Constitution of the United States , said this: 'We have staked the whole future of our new nation, not upon the power of government; far from it. We have staked the future of all our political constitutions upon the capacity of each of ourselves to govern ourselves according to the moral principles of the Ten Commandments.'
Today we are asking God to bless America . But how can He bless a Nation that has departed so far from Him?

Most of what you read in this article has been erased from our textbooks. Revisionists have rewritten history to remove the truth about our country's Christian roots. I , Mary Jones, the designer of this web page, encourage all who read and agree with the words herein, to share it with others, so that the truth of our nation's history may be told.

What does one TRILLION dollars look like

2009-03-11T10:42:00.000-07:00

What does one TRILLION dollars look like?

All this talk about "stimulus packages" and "bailouts"...

A billion dollars...

A hundred billion dollars...

Eight hundred billion dollars...

One TRILLION dollars...

What does that look like? I mean, these various numbers are tossed around like so many doggie treats, so I thought I'd take Google Sketchup out for a test drive and try to get a sense of what exactly a trillion dollars looks like.

We'll start with a $100 dollar bill. Currently the largest U.S. denomination in general circulation. Most everyone has seen them, slighty fewer have owned them. Guaranteed to make friends wherever they go.

A packet of one hundred $100 bills is less than 1/2" thick and contains $10,000. Fits in your pocket easily and is more than enough for week or two of shamefully decadent fun.

Believe it or not, this next little pile is $1 million dollars (100 packets of $10,000). You could stuff that into a grocery bag and walk around with it.

While a measly $1 million looked a little unimpressive, $100 million is a little more respectable. It fits neatly on a standard pallet...

And $1 BILLION dollars... now we're really getting somewhere...

Next we'll look at ONE TRILLION dollars. This is that number we've been hearing so much about. What is a trillion dollars? Well, it's a million million. It's a thousand billion. It's a one followed by 12 zeros.

You ready for this?

It's pretty surprising.

Go ahead...

Scroll down...

Ladies and gentlemen... I give you $1 trillion dollars...

(And notice those pallets are double stacked.)

So the next time you hear someone toss around the phrase "trillion dollars"... that's what they're talking about.

Center of the Bible

2008-04-11T06:51:00.000-07:00

Center of the Bible

The pictures are awesome.... but wait until you read the words.

Q: What is the shortest chapter in the Bible?

A: Psalms 117

Q: What is the longest chapter in the Bible?

A: Psalms 119

Q: Which chapter is in the center of the Bible?

A: Psalms 118

Fact: There are 594 chapters before Psalms 118

Fact: There are 594 chapters after Psalms 118

Add these numbers up and you get 1188.

Q:? What is the center verse in the Bible?

A: Psalms 118:8

Q:? Does this verse say something significant about God's perfect will for our lives?

The next time someone says they would like to find

God's perfect will for their lives and that they want to

be in the center of His will, just send them to the

center of His Word!

Psalms 118:8

"It is better to trust in the LORD than to put confidence in man."

Now isn't that odd how this worked out (or was God in the center of it)?

When things get tough, always remember...

Faith doesn't get you around trouble, it gets you through it !!