The American Dream

Maybe it’s time we all wake up from our slumber. Maybe it’s time to understand the things that we’ve been too lazy to learn for ourselves instead of relying on someone else to tell us what to think!  We have God-given rights as human beings, yes! But along with those rights, we have responsibilities we must accept – each and every one of us!

Here’s a start…. understand what money truely is!


“If the American people ever allow private banks to control the issue of their money, first by inflation, and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property – until their children wake up homeless on the continent their fathers conquered.”  – Thomas Jefferson, 1802

“He who sacrifices freedom for security deserves neither.” – Ben Franklin

For more information on the Federal Reserve, the way it works and its history, see this article.  And here’s an interesting look at the way the US fiat currency has been debased over the last 100 years.

Tough Questions for Eric Sprott

Lauren Lyster puts the tough questions to Eric Sprott regarding gold and silver and whether or not investment in such is warranted, given the lackluster performance over the past year.  Sprott responds by pointing out that given the increases in quantities of the metal that have been purchased recently,  it’s highly likely that central banks have been leasing their physical gold into the marketplace in order to suppress the price.

  • In the last 12 years, the annual physical gold demand has increased by 2500 tonnes/year. But the supply of gold has remained flat.  Where does the new metal come from to meet this new demand?
  • Some rather prominent central banks have recently been subjected to questions asking about the validity of their gold claims held in foreign vaults (i.e. Germany and Austria).

The discussion continues to include:

  • The Fed is buying 90% of US Treasuries.  Japan and other central banks are practicing similar policies. Central banks of the world are trying to keep interest rates low for extended time frames, “which is ludicrous.”
  • Sprott expects silver to outperform gold in the next decade and points out the investment ratios he’s seeing from the entities making purchases of these two precious metals.
  • Lauren Lyster defines Hard Money and it’s relation to old and new central banking policies.
  • A record 47.7 million Americans are now on food stamps, according to the latest report from the Supplemental Nutrition Assistance Program (SNAP).

Expect Currency War to Continue in 2013

Author of Currency Wars, Jim Rickards explains that the Fed’s easing programs have thus far failed to create their desired inflation, which, in their view, is required to boost US exports.  Although Japan will be allowed to weaken their currency, all the other currencies of the world will be strengthened as the US strives to further weaken the US dollar. Of course, gold is still the currency of choice to preserve wealth.




Expanding the discussion, Lauren Lyster interviews Jim Rickards, where he clarifies the Fed’s tactics:

  • The economy has failed to recover despite the Fed’s actions so far because the consumer has not been willing to spend or invest.  Hence money velocity has remained nil.
  • The Fed is trying to induce more spending by: (1) Forcing a negative interest rate as an incentive for more borrowing, and (2) Scaring the public into buying stuff through the threat of future inflation.
  • The inflation, they hope, will be the result of all the currency wars with other nations, especially China – cheapening the dollar will make imports more expensive.

It’s a race between the Fed trying to achieve their goals and the whole system imploading because of a loss of confidence in the dollar.

Attacking the Rich?

All this talk in Washington about going after the rich to pay more taxes is just a smoke screen.  As Rick Santelli explains in the clip below, the arguments between the Democrats and Republicans are using numbers that ignore inflation & mislead the public on who they’re actually targeting with tax increases.

  • To say that the tax increases will only affect those making $250K/year is really talking about those making $165K/year (in 1993 dollars), which is a 35% miss when it comes to being honest about the actual situation our economy is facing.
  • Or worse, when they talk about only taxing the millionaires and yet begin their arguments with finding ways to tax those making $250K/year, that’s a 75% miss.

The main point is that by ignoring the inflation, these government leaders are purposely hiding their ever-increasing extortion of wealth from the middle class, not from the rich!


The Debt’s the Issue, Not the Ceiling!

From the main-stream media: CNBC’s Rick Santelli reports from the floor of the Chicago Mercantile Exchange and expounds on our government leaders’ misguided pursuits to establish an unlimited (and unregulated) debt policy.  (Not that the ceiling debate will make any difference in the long run – because to fix the debt problem, spending cuts that cost politicians their careers would need to be undertaken.  But with a ceiling in place, at least there’s some semblance of recognition that there’s a real problem with the national debt and its unstoppable growth.)


Forcing & Reinforcing Socialism

How is it that many Americans have come to embrace the concept of socialism, even though history shows that it’s failed miserably as an economic foundation?  Perhaps it’s nothing more than human nature – we’d much rather be taken care of by someone else, rather than take responsibility for our own lives.  In the following video, Dinesh DSouza delivers two wonderful analogies that make it easy to understand what socialism is, why it’s morally wrong and yet, why most human beings would find it appealing.

FERC Suspends JP Morgan’s Power Trading Unit

JP Morgan ChaseJP Morgan’s electricity trading desk will essentially be sidelined for 6 months next year because of actions taken by the U.S. Federal Energy Regulatory Commission (FERC).  According to the Los Angeles Times, the regulations authority accuses JP Morgan of misrepresenting facts and filing false information in its reporting and communications with the California Independent System Operator known as Caiso.

This all stems from August last year, when FERC started investigating JP Morgan Ventures Energy Corp. for alleged abusive bidding activities and potentially manipulative trading practices in the energy markets. Then, earlier this year in July, FERC sued JP Morgan because it had refused to turn over internal emails FERC had requested during its investigations.

Of course JP Morgan officials deny any wrong-doing, excusing any reporting deficiencies as inadvertent mistakes that were made in “good faith.”  But in its decision, FERC states “no showing of the respondent’s intent or mindset is necessary in order to demonstrate that a violation” has occurred.

So here we have a regulatory agency that has the integrity and courage to stand up to the banking giants when they see clear violations and market manipulation. If only the CFTC would take notice. In their 4+ years of investigating the alleged silver market manipulation by JP Morgan, nothing has resulted.

In his letter to subscribers, Ted Butler included the following:

While we hear excuses from the CFTC about the need to prove intent before bringing charges of manipulation against JPMorgan in silver, FERC insisted that intent was a side issue. FERC’s got it exactly right, in my opinion. If someone is messing with the market, there is no need to pussy foot around intent; stop the messing around first and then sort out the details later.  We can decide in time if JPMorgan is manipulating silver intentionally or by accident; the important point is to first stop the manipulation. Not every homicide is premeditated and to be prosecuted as murder one; some homicides are manslaughter and not premeditated. That doesn’t mean we tolerate people killing people if the intent isn’t clear. Likewise, JPMorgan is clearly manipulating the price of silver by virtue of their concentrated short position and status of being the dominant seller of new short contracts. First the CFTC should make them stop; then charges can be decided upon.

 But then again, there aren’t any FERC members within the inner circle of elite central planning known as the Plunge Protection Team.

CFTC Commissioner Bart Chilton Comments on Silver Manipulation

In this RT episode, Lauren Lyster interviews CFTC Commissioner Bart Chilton and they discuss:

  • The ongoing investigation of alleged silver market manipulation and Mr. Chilton specifically admits he’s seen one market participant have a controlling 30% concentrated position in that market. (It should be noted that this 30% position dominance is on the short side of the market. And the reader is urged to remember that in 1980, the Hunt Brothers were charged with having only a 20%  dominance on the long side of the market.)
  • The difficulty in winning a legal action suit that alleges manipulation is in proving intent.
  • The increasing evidence of fraud in the market place, exemplified by such cases as MF Global and Peregrine.  Mr. Chilton’s recommendations on protecting against future occurrences include the creation of an investor insurance program like that savers are provided with by the FDIC.
  • The delay in Dodd-Frank rules and the fact that “government is slow and reactive.”

RT: The Empire of Debt and the Election

In this episode of Russia Today’s Capital Account, Lauren Lyster interviews Bill Bonner, author of Empire of Debt. The highlights include:

  • Do the statistics and reports generated by the government help anyone determine the real state of the economy?  GDP, CPI and Unemployment reports “mean something, but they don’t mean what they say it means.”
  • A economic system based on fiat/paper money has never lasted in the past. Ever since 1971, when Nixon closed the gold window,  the resources of the country have been used unwisely, investing in programs that destroy the country’s wealth.  In order for real economic growth, this practice must be changed so that resources are invested in initiatives that build wealth.
  • The outcome of the presidential election will not alter the current course. Instead, the election is basically a contest to determine which group of ‘zombies‘ will get government sponsorship. A Romney win will ensure the military industrial complex stays in business, while an Obama victory will further the social/welfare state.
  • The government employing stimulus as a policy to help the economy is ridiculous. Again, it doesn’t help the overall economy generate wealth, it only serves those favored cronies with close ties to those in political office.

Jim Rickards on War – Currency or Otherwise

In his book Currency Wars, Jim Rickards reveals his participation in war games sponsored by the Secretary of Defense in 2008. The objective of these particular games was to discover how nations of the world might use financial instruments to wage war on each other and to gain some perspective on their effectiveness.  In the video below, he goes a step further and hypothesizes on what events might take place between the US and China as the world economy continues to slide into the toilet.  Rickards ends the video with a probable sequence of events that will take place if we stay on the current path.

Greed, Fear, Bubbles and Market Madness

Grant Williams, of Vulpes Investment Management, provides us with a brilliant presentation explaining how greed and fear play into the making of economic bubbles.  After giving a few examples of historic bubbles of the past, Williams then goes on to describe two bubbles in the present.  Spoiler alert!

Williams presents the latter two bubbles happening today as one nearing a collapse and the other in a “sweet spot” ready to enter the hyper-inflating mania phase.

Ron Paul on the ‘One-Party’ System

The illusion of choice continues to be exposed, although one wonders if the public is either too hypnotized or too apathetic to recognize what’s really happening.  Jimmy Rogers had earlier inferred on CNBC that neither Obama nor Romney understood enough about economics to make appropriate comments on policy.

Ron Paul then notes that the established banking powers, i.e. the Fed, will be equally served by either the Republican or the Democrat… “they both know how to play the game and they represent a one-party system.”  This system depends on the Fed to keep printing money for bail-outs and government spending. [Under such a system, isn’t it obvious that the real power does not reside in the White House?]  Furthermore, Paul states, “I’ve been in this business for a long time and believe me, there is essentially no difference from one administration to another, no matter what the platform.”

Approaching the Fiscal Cliff

The US is coming up fast on the so-called Fiscal Cliff, but neither of the two political parties’ candidates are openly discussing the potential economic calamity or any remedies to overcome any resultant disaster.  On this CNBC interview, Lloyd Blankfein, CEO of Goldman Sachs, Alan Simpson & Erskine Bowles of the Deficit Commission discuss the reasons why so many major corporations are holding their cash at this uncertain juncture.

Total Destruction of the Economy

G. Edward Griffin, author of The Creature from Jekyll Island, explains how the Federal Reserve’s main goal is to support the banks – that’s it. The Fed creates money from nothing and gives it to the banks to keep their operations going.  All their actions benefit the banks, and screw the rest of us.

It was fun getting screwed for a while – while we didn’t even know what was happening.  Up until now, the US and most of the western world has benefited greatly from this system. We’ve been living the dream. It was the best kind of dream – a wet dream.  It’s time to wake up and see the mess we’ve made.

The Fed is Possibly Even More Sinister Than We Think

There’s been much discussion on the Fed’s newest monetary easing policy. The markets received their much anticipated stimulus and are reacting positively (for now).  But as previous posts have indicated, the Fed’s stated objectives and motives are questionable at best.  For a few steps further down the rabbit hole, here’s a must-see video from CrisisHQ

“If you want to understand what’s happening in the Mideast, particularly in Libya, Syria and Iran, you must first understand the main driving force behind U.S. foreign policy. Contrary to mainstream media propaganda, it is not our desire to spread democracy or to prevent tyrannical despots from murdering their own citizens. The real agenda is to protect the Petrodollar system, because it is the only thing that is currently preventing the total collapse of our fiat currency.


For more information on the Petro-Dollar, please see our research article: Root Cause: The Petro Dollar.