Sunday, November 30, 2008
December 5th- Lynn Marzulli www.lamarzulli.wordpress.com
December 12th- Steve Bonenberger http://www.stevebonenberger.com/
LITTLE ROCK, Ark. (AP) — A series of small earthquakes that rattled central Arkansas in recent weeks could be a sign of something much bigger to come.
Former Clinton Treasury Secretary Turned Obama Adviser
Was Paid Tens of Millions by Bailed-Out Citigroup
By Matt Cover 25-11-2008
CNSNews.com) – Robert Rubin, a key economic advisor to President-elect Barack Obama who served as Treasury secretary in the Clinton Administration, has been one of the highest paid executives at the now twice bailed-out financial giant Citigroup.
Why hasn't the bailout by the Democrats and Republicans been for the consumers? Because it isn't about giving you money, it's about taking money from you!
Judge Allows Civil Suit Over Co-worker's Perfume
Judge OKs Suit That Claims Detroit City Employee Couldn't Work Because Of Co-worker's Perfume
DETROIT, Nov. 27, 2008
(AP) A federal judge says a Detroit city employee can proceed with a civil suit claiming she couldn't work because of a co-worker's strong perfume.
The Detroit News says U.S. District Judge Lawrence Zatkoff determined Susan McBride has a potential claim under the Americans with Disabilities Act.
The city is asking to have the suit dismissed.
McBride says she's severely sensitive to perfumes and other cosmetics. She says the perfume worn by a co-worker in the city's Planning Department made it difficult for her to breathe.
She says the co-worker also used a plugged in room deodorizer.
The suit says the co-worker later agreed to stop using the room deodorizer but kept using perfume.
Saturday, November 29, 2008
Outrage over Planned Parenthood Christmas 'gift' cards
A very good film that takes a hard look at globalization, as we know it today.
UPDATE: This movie is a MUST SEE. It should make you outraged as you watch the American corporations and the World Bank, working together to enslave people in third world countries. Workers at 24 hour work shifts in sweat shops making 72 cents per day, living in the worst possible slums, etc. It's interesting- this film talks about a meeting in Europe that took place that revolved around Indonesian investments with David Rockefeller, Chase bank, etc.
Yet, the American people can't seem to understand the scam around them. We just bailed out the banks and the banks are slowly squeezing Americans. Their plans for a New World Order are working because most of us are too consumed with High Definition television sets.
The United States is in big trouble. You cannot play around with dictators who slaughter mass amounts of people- to enslave the rest under horrific working conditions- so your elites profit.
One word: JUDGEMENT.
I realize that my embedded video doesn't seem to be an efficient size so here is the link. PLEASE do watch it. It's important.
FULL SIZE VIDEO
Pictured: President Barry
Dave Bertrand, Traffic AlertUSA.com
28 November 2008
By Denis Robinson
THE Dispatch district appears to be a hotbed for Unidentified Flying Objects (UFOs), a group have claimed.
This follows a Letter from Brian L.Sellers, of Hucknall's Derbyshire Lane, in the Dispatch's 'Your Opinions' about six mysterious orange lights he saw on the evening of Saturday November 15.
Kristian Lander, founder of Nottinghamshire Paranormal Network, said there had also been reports of UFO activity on the following evening.
"Two people walking between Linby and Papplewick saw between seven and nine objects like orange balls performing aerobatic manoeuvres," said Mr Lander."They were at a distance but were extremely bright and apparently very large indeed."
Mr Lander added that after he received the call, he looked from where he lives in Bulwell and saw a bright object rise and disappear in the space of five seconds.
Another sighting of that evening's UFOs was by Martin Bell (48), of Hucknall's Victoria Street, as well as by his stepdaughter, Kimberley (19), and his fiancee, Denise.
"They were travelling very slowly in a long line with 100 to 200 metres between them," said Mr Bell.
"They disappeared above clouds but came out on the other side. They they fizzled out."
Other witnesses included Julie Riley (42), of Strathmore Close, Hucknall, who saw them as she was taking her mum, Iris Woodfield (79). home to the town's Truman Drive after they had watched 'The X Factor' on TV.Under the circumstances, perhaps another TV programme, 'The X Files,' would have been more appropriate.
Mr Lander said one spine-chilling report, given anonymously to the group during the summer, was of a black BMW in Bestwood Village.
"The occupants were as still as mannequins when our contact knocked on the car window," said Mr Lander."One of the occupants suddenly turned and had no facial features apart from small nostrils and a thin slit for a nose."
The car then powered up and drove off. Men in black, perhaps?
"There is a low-frequency audible drone at the Bestwood Village entrance to the country park, which is currently unidentifiable. When you spend more than five minutes listening to it, you have the most incredible headache."
From the UK: http://www.hucknalldispatch.co.uk/hucknall/Hotbed-for-UFO-sightings.4742618.jp
Friday, November 28, 2008
The cause of death wasn't immediately available pending results of an autopsy.
A 28-year-old pregnant woman was knocked to the floor during the mad rush. She was hospitalized for observation, police said. Early witness accounts that the woman suffered a miscarriage were unfounded, police said.
Three other shoppers suffered minor injuries, cops said.
Wal-Mart spokesman Dave Tovar called the incident a "tragic situation."
By Ambrose Evans-Pritchard
Last Updated: 7:29AM GMT 27 Nov 2008
The bank said the damage caused by the financial excesses of the last quarter century was forcing the world's authorities to take steps that had never been tried before.
This gamble was likely to end in one of two extreme ways: with either a resurgence of inflation; or a downward spiral into depression, civil disorder, and possibly wars. Both outcomes will cause a rush for gold.
"They are throwing the kitchen sink at this," said Tom Fitzpatrick, the bank's chief technical strategist.
"The world is not going back to normal after the magnitude of what they have done. When the dust settles this will either work, and the money they have pushed into the system will feed though into an inflation shock.
"Or it will not work because too much damage has already been done, and we will see continued financial deterioration, causing further economic deterioration, with the risk of a feedback loop. We don't think this is the more likely outcome, but as each week and month passes, there is a growing danger of vicious circle as confidence erodes," he said.
"This will lead to political instability. We are already seeing countries on the periphery of Europe under severe stress. Some leaders are now at record levels of unpopularity. There is a risk of domestic unrest, starting with strikes because people are feeling disenfranchised."
"What happens if there is a meltdown in a country like Pakistan, which is a nuclear power. People react when they have their backs to the wall. We're already seeing doubts emerge about the sovereign debts of developed AAA-rated countries, which is not something you can ignore," he said.
Gold traders are playing close attention to reports from Beijing that the China is thinking of boosting its gold reserves from 600 tonnes to nearer 4,000 tonnes to diversify away from paper currencies. "If true, this is a very material change," he said.
Mr Fitzpatrick said Britain had made a mistake selling off half its gold at the bottom of the market between 1999 to 2002. "People have started to question the value of government debt," he said.
Citigroup said the blast-off was likely to occur within two years, and possibly as soon as 2009. Gold was trading yesterday at $812 an ounce. It is well off its all-time peak of $1,030 in February but has held up much better than other commodities over the last few months – reverting to is historical role as a safe-haven store of value and a de facto currency.
Gold has tripled in value over the last seven years, vastly outperforming Wall Street and European bourses.
Bloggers Choice Awards:
I'm tied for 7th place for Best Podcast Blog.
I'm in 17th place for Best Political Blog, one vote behind Arianna Huffington's blog.
If you could, Please vote for my blog at nomination links on the left side. I'd really appreciate it.
Steve Watson, Nov 28, 2008
Texas Congressman Ron Paul has warned that international forces are planning the creation of a global central bank that will see a new fiat monetary system come to dominate the world economy.
The 2008 presidential candidate also warned that Barack Obama's administration will only represent a change in faces and not in policies.
Speaking about the recent G20 meeting Paul told Russia Today:
"I think something will come of it but you probably didn't hear about it yet. There was some pomp and ceremony that the public knew about, but behind the scenes they were talking about the future and what they are going to do to try to internationalize all regulations, going in the opposite direction of free market and more towards international regulations. I'm sure they even talked about an international central bank."
Watch the entire interview here.
What does Columbus Day and Christopher Columbus have to do with Bible Prophecy? First of all the bible teaches that in the days when Jesus Christ returns to earth, it will be the descendants of the Roman Empire that will be ruling the earth. How do we know that? Daniel 9:26 "and the people of the prince that shall come shall destroy the city and the sanctuary". The city referred to here is Jerusalem. When was it destroyed? In 70 A.D. Who destroyed it? The Roman Empire.
The "prince that shall come" refers to the coming antichrist. Since it was "his people" that destroyed Jerusalem then this "prince" must arise from the Roman Empire. What does this have to do with Columbus Day and Christopher Columbus? First of all, the only empire that has conquered the nations successfully throughout history is the Roman Empire. Keep in mind that Europeans are Roman Empire descendants which makes the United States an extension of the Roman Empire since it was founded by Europeans. Great Britain colonized Africa, Hong Kong, and Australia. Canada was colonized by the French. South America was taken by Spain. All countries which were once part of the Roman Empire. In each case, the lands were taken by force. Christopher Columbus was from Spain which is in Europe which was the Roman Empire.
This 4th beast is the Roman Empire and this Empire is the only one that has put colonies in and settled in all four corners of the globe. Was Christopher Columbus an adventurer who discovered America or was his actions more in line with the "exceeding dreadful" beast of Daniel 7:19. What really happened when Christopher Columbus came to America?
The event is fraught with misinformation. Let us start with the voyage itself. Contrary to the myth the weather was quite good and the Pinta, Nina and Santa Maria had clear sailing. This is confirmed by Columbus’ own journal. Second, the ships themselves were fully suited for their purposes and hardly the small tiny ships that we have been led to believe. Third, the voyage only took one month not two and the crew was not on the verge of near mutiny but were simply getting on each others' nerves. The Columbus biographer Samuel Eliot Morison confirms this. Upon arriving the natives went out to meet Columbus. They were friendly and gregarious. How did Columbus react? Well he said, "I could conquer them with fifty men and govern them as I please." So he kidnapped several of them and took them back to Spain where they met the queen. This was enough, along with the promise of gold, to finance another voyage by Columbus.
When Columbus returned he demanded gold. To ensure cooperation those who refused or committed a minor offense had their nose and ears cut off. His men demanded their women for sexual purposes and raped them. Finally, the Arawaks had enough and resisted. This turned into an outright slaughter by Columbus. He turned his attack dogs loose who ripped the resisters apart. Finding no gold he captured about 1,500 natives, took them from their families and set off to Spain where 500 of them would die along the way. Now Columbus brought the name of God into the picture, "In the name of Holy Trinity, we can send from here all the slaves and brazil-wood which could be sold." Columbus acted in a manner that was more devil like than God like. How often are atrocities performed in the name of God? This is simply Satan working to deceive people.
But the worst was yet to come and Columbus instituted a reign of terror. He demanded that the natives pay the crown a tribute. Those who did not had their hands cut off. Pedro de Cordoro wrote back to the King about what was happening and said, "As a result of the sufferings and hard labor they have endured, the Indians choose and have chosen suicide." He went on to say that, rather than give birth, women killed themselves and their newborn infants. The men of Columbus brought with them diseases as well. This was an ecological disaster that caused the death of over 3,000,000 Arawaks in the course of fifty years. To fill the vacancy left by this, Columbus brought slaves from Africa. So, Columbus was directly responsible for the introduction of the slave trade to the New World. This was the start of capitalism. The Catholic Church backed this genocide and European rule replaced a Utopia. These are the thoughts of Sir Thomas More who challenged European hierarchy with the examples of the native Americans.
Christopher Columbus was an ungodly man who behaved more like the antichrist than an adventurer who wanted to prove to the "queen" that the world was round. Yet the United States honors this man with a holiday each year. The USA screams for Bin Laden's head (and rightly so) while at the same time having a national holiday for a terrorist. Ironic isn't it?
Interesting enough, Columbus seems to have understood Bible Prophecy very well. He published "The Book of Prophecies". From PBS' "Frontline":
Christopher Columbus is often viewed as the hard headed navigator, a kind of modern man breaking with the past. But if we look at the history of Columbus and some of his writings, particularly his letters and in the Book of Prophecies that he put together, we can see that Columbus thought of himself very much in terms of the apocalyptic tradition. And he felt that his voyages of discovery were ushering in a millennial age, an age of a Last World Emperor, a Spanish Last World Emperor, who would recapture the holy apocalyptic city of Jerusalem and initiate a messianic period. And he had studied prophecies very, very carefully as he put together this Book of Prophecies, in order to sell his programme to Ferdinand and Isabella. And it's not that he was using this. He believed it. And he felt that they should believe it as well. ...
He was not an original apocalypticist. His Book of Prophecies is a compilation of a whole range of prophesies, texts from the Old and the New Testament, along with more current prophesies. What he's trying to do is to create a kind of handbook of prophesies that he can use in his attempts to get new funding from Ferdinand and Isabella. One of the prophesies that he fastens upon is a prophecy of a coming last emperor who will reconquer Jerusalem, who is very specifically a Spanish ruler. And we know that he ascribes this prophecy to Joachim of Fiore, but Joachim didn't write it. It ... was actually a Spanish prophecy from the early 14th century. But Joachim's reputation as the medieval prophet was so large that of course many later prophesies and visions were ascribed to him in pseudonymous fashion.
How does Jerusalem begin to figure into Columbus' discovery of the New World?
Well, Columbus felt that he was able to go around the world to get to Jerusalem, and that going around the world to get to Jerusalem would allow and facilitate the conquest of Jerusalem by a Spanish Last World Emperor. The way to Jerusalem had been blocked by the Turks and others. But the gold that he felt he would discover in the Indies was the money that would be needed to mount the military expedition that would reconquer Jerusalem and, as I said, issue in a universal messianic rule in which Christianity would triumph under the leadership of a Spanish last monarch. ...
So, Columbus' goal was to appoint a One World Leader to reign from Jerusalem under a "messianic-like" rule.
Can all of this explain the American Empire (which goes against many of the Founding Father's views) and the push for a New World Order?
Thursday, November 27, 2008
Paul Joseph Watson & Steve Watson
As we predicted would happen in our early report yesterday, Indian government authorities are now blaming Pakistan for being behind the ongoing attacks in Mumbai, providing a perfect pretext for expanded U.S. military aggression against a country that is also a target for President elect Barack Obama.
International Intelligence Expert
People duck as gunshots are fired from inside the Taj Mahal hotel in Mumbai -Reuters
LATE BREAKING UPDATE
Thursday November 27, 2008 as of 5:15 a.m. PST
As of this hour the President of India has concluded the attacks against Mumbai aka Bombay were directed from outside forces aka the Pakistani ISI with direct funding from the East German Stasi DVD Deutsche Bank.
The paramilitary group, which entered India by sea using naval and cargo vessels that have direct links to the gang of Somalia pirates, have been operating unchecked off the shores of Africa and south Asia for at least four years.
Indian Intelligence officials inform us that the funding for the Somalia pirates and the current paramilitary group aka scripted mercenaries, is directly linked to the Hamburg, Germany "Becker" cell and the East German Stasi DVD Deutsche Bank.
Indian Intelligence sources tell us that the dots have been directly connected between the Pakistani ISI, the East German Stasi DVD and the Bush-Clinton- Gary Best-Mossad riddled Crime Family Syndicate.
It should be remember that in various terrorist trials in German involving 9/11, FBI Director Robert Mueller took the 5th Amendment concerning the identity of various alleged terrorists because of their links to U.S. Intelligence and the Israeli Mossad dating as far back to the early days of Iran Contra.
AND, IT GETS WORSE!
Indian Intelligence officials have told us that the Indian counter-terrorist official, who was allegedly killed in the paramilitary attack, had actually been compromised by the Pakistani ISI, which allowed the Pakistani ISI paramilitary group, tied to the Somalia pirates, commandeer Indian Naval vessels and actually use these vessels to arrive in Mumbai aka Bombay.
The late Indian counter-terrorist official may have also had a role in the assassination of the late Pakistani Prime Minister Benazir Bhutto.
The late Indian anti-terrorist official is not Hindu but a described Muslim.
At this hour, U.S. Secretary of State Condoleezza Rice is actually trying to negotiate with Indian President Pratibha Patil, the release of some of the paramilitary Pakistani ISI leadership that were captured in the attack by India's Internal Security forces.
There is an attempt now by the U.S. government to have the Indian government distinguish between the Intelligence- linked leadership of the Pakistani ISI group and the rank and file soldiers who were recruited by Pakistani ISI for the purpose of the BLACK OP.
Yes, folks, this whole thing is really unraveling.
In closing, the NSA-Mossad riddled, corporate controlled American media are desperate to blame this on the boogey man, alleged Al Qaeda, and basically ignore the overwhelming evidence that has been gathered by Indian Intelligence, French Intelligence as well as European INTERPOL, which clearly points to the perpetrators of this crime being Pakistani ISI, East German Stasi DVD and the rogue Bush-Clinton- Gary Best-Mossad riddled British Intelligence linked "TRUE COLORS" mercenaries aka pirates and assassins.
"Al Qaeda is nothing more than an extension of the apparatus linked to U.S. intelligence that was allowed, by script, to remove itself as a rogue breakaway entity of the U.S. government; allowed to de-compartmentalize from oversight, and was run instead by Gary Best's rogue black ops specialists for scripted activity outside the U.S. government, with its funding being orchestrated through the Pakistani secret police—an entity of the U.S. government."
Tom Heneghan, International Intelligence Expert
Wednesday, November 26, 2008
So once in every year we throng
Upon a day apart,
To praise the Lord with feast and song
In thankfulness of heart.
~Arthur Guiterman, The First Thanksgiving
An optimist is a person who starts a new diet on Thanksgiving Day.
God has two dwellings; one in heaven, and the other in a meek and thankful heart.
By RAMOLA TALWAR BADAM, AP
MUMBAI, India (Nov. 26) - Teams of heavily armed gunmen stormed luxury hotels, a popular tourist attraction and a crowded train station in at least seven attacks in India's financial capital, killing at least 78 people and wounding at least 200, officials said Thursday.
The gunmen were specifically targeting Britons and Americans and a top police official said the gunmen are holding hostages at two luxury hotels, the Taj Mahal and Oberoi hotels.
Tuesday, November 25, 2008
For many years, I hoped this would never happen, and I thought we might be able to avoid it.
Indeed, that’s why, my firm, Weiss Research, first began rating the safety of the nation’s banks in the early 1980s, and why I later founded Weiss Ratings, a separate subsidiary dedicated exclusively to safety ratings — on thousands of banks, insurance companies, brokerage firms, mutual funds and stocks.
I subsequently sold the Weiss Ratings subsidiary to Jim Cramer’s organization, TheStreet.com; and today, my former company is called TheStreet.com Ratings.
Citigroup collapses! Banking Shutdown Possible
Written by John F. McManus
Wednesday, 26 November 2008 00:00
Milton Kirk Cordes, Rapid City, S.D. Offense: Conspiracy to violate the Lacey Act. Sentenced Dec. 14, 1998 to 18 months' probation conditioned on loss of hunting privileges for one year, performance of 100 hours of community service and fined $2,000.
Richard Micheal Culpepper, Mahomet, Ill. Offense: False statements to the United States. Sentenced Jan. 15, 1988 to five years probation conditioned on payment of a $1,000 fine and $4,351.90 in restitution.
Brenda Jean Dolenz-Helmer, Fort Worth, Texas. Offense: Misprision of a felony. Sentenced Dec. 31, 1998 to four years probation, 600 hours of community service and a $10,000 fine.
Andrew Foster Harley, Falls Church, Va. Offense: Wrongful use and distribution of marijuana and cocaine. Sentenced April 17, 1985, U.S. Air Force general court martial, to 90 days confinement, forfeiture of all pay and allowances and dismissal from the Air Force.
Obie Gene Helton, Rossville, Ga. Offense: Unauthorized acquisition of food stamps. Sentenced April 1, 1983 to two years probation, $500 fine and $875 in restitution.
Carey C. Hice Sr., Travelers Rest, S.C. Offense: Income tax evasion. Sentenced March 5, 1996, to three years probation condition with 180 days home confinement and a $13,000 fine.
Geneva Yvonne Hogg, Chamblee, Ga. Offense: Bank embezzlement, sentenced June 19, 1980 to five years probation and a $500 fine.
William Hoyle McCright Jr., Midland, Texas. Offense: Making false entries, books, reports or statements of bank. Sentenced Oct. 20, 1986 to two years imprisonment and a $10,000 fine.
Paul Julian McCurdy, Sulphur, Okla. Offense: Misapplication of bank funds by a bank officer. Sentenced Feb. 12, 1988 to five years probation and $5,000 in restitution.
Robert Earl Mohon Jr., Grant, Ala. Offense: Conspiracy to distribute marijuana. Sentenced Oct. 22, 1987 to three years in prison.
Ronald Alan Mohrhoff, Los Angeles. Offense: Unlawful use of a telephone in furtherance of a narcotics felony, possession of cocaine. Sentenced Oct. 9, 1984 to one year of in prison followed by five years probation with 2,500 hours community service.
Daniel Figh Pue III, Conroe, Texas. Offense: Illegal treatment, storage and disposal of a hazardous waste without a permit, illegal transportation of a hazardous waste to an unpermitted facility for storage or disposal. Sentenced Oct. 25, 1996 to three years probation conditioned on six months home confinement and a $1,000 fine.
Orion Lynn Vick, White Hall, Ark. Offense: Aiding and abetting the theft of government property. Sentenced June 17, 1975 to payment of a $250 fine within 90 days.
John Edward Forte, North Brunswick, N.J. Offense: Aiding and abetting possession with intent to distribute five kilograms or more of cocaine. Sentenced Nov. 20, 2001 to 168 months in prison, five years supervised release and a $5,000 fine. Terms of commutation: Sentence of imprisonment to expire on Dec. 22, 2008, leaving intact and in effect the five year term of supervised release with all its conditions.
James Russell Harris, Detroit, Mich. Offense: Conspiracy to aid and abet the distribution of cocaine, attempted money laundering,aiding and abetting the attempted distribution of cocaine, conspiracy to affect interstate commerce by obtaining property under color of official right,attempt to affect interstate commerce by obtaining property under color of official right. Sentenced May 10, 1993 to 360 months in prison, five years supervised release and a $50,000 fine. Terms of clemency grant: Unpaid balance of fine remitted; sentence of imprisonment commuted to expire on Dec. 22, 2008, leaving intact and in effect the five year term of supervised release with all its conditions save the obligation to satisfy the unpaid balance of the fine.
Economic tumble worse than expected in 3rd quarter (AP)
Britain begins national identity card plan (AP)
Over 50,000 homeowners in NYS face foreclosure
PAPER: Is Britain going bankrupt?
RUSSIAN ANALYST PREDICTS DECLINE AND BREAKUP OF USA
RIOTS IN ICELAND: CITIZENS REVOLT AGAINST FINANCIAL CRISIS, CORRUPT MINISTERS...
Monday, November 24, 2008
Deflation or Hyperinflation
by Douglas V. Gnazzo, Honey Money Report November 24, 2008
Although I have written on this subject before Honest Money: Scylla & Charybdis: The Scourge of Mankind, I would like to revisit the topic, as it has once again become a popular theme. A financial crisis is occurring around the world. Few seem to know why or how to fix it. This paper attempts to answer these questions. First, some definitions are in order.
Inflation is an increase in the supply of money (quantity) over and above the demand for money. A loss of purchasing power or value of money follows.
Deflation is a decrease in the quantity of money (supply) below the demand for money. An increase in the purchasing power or value of money follows.
Either inflation or deflation is constantly occurring in the marketplace as the value of money never remains fixed. It is rare for monetary deflation to occur. Inflation dominates in a world of paper fiat money. This is easily illustrated by the Federal Reserve’s inflation calculator, which shows the dollar losing 96% of its purchasing power since the Fed was created in 1913.
The last period of significant deflation occurred during the Great Depression in the 1930’s. Our monetary system had just come off the gold standard. To compare present times with the 1930’s is comparing apples to oranges. Coming off the gold standard involved the dissolution of complex inter-market dynamics that throws meaningful comparisons out the window.
Loss of purchasing power is crucial in understanding today’s financial crisis. Money is used as a medium of exchange to purchase other goods with. Purchasing power is literally the power that money has to purchase. The larger the quantity of goods that a unit of money can buy, the greater is its purchasing power; and the better off the consumer will be.
It is not the quantity or number of units of money that is important. What is important is the quantity of goods the unit of money can purchase. It is the quality of money (purchasing power) that is important. The greater the value of money the more goods it can buy.
The loss of purchasing power is better known as inflation. Inflation is a hidden tax that comes like a thief in the night and steals one’s wealth or power to purchase. It is more lethal than any form of direct tax such as income tax. If you were taxed 96% of your income you would be up in arms. Yet, inflation has stolen the same amount of purchasing power from you over the years.
A financial crisis is occurring around the world. What caused this crisis? The answer is simple: monetary inflation of epic proportions created by excess credit and debt issuance. The tons of paper money created fueled unsustainable bubbles in real estate, stocks, bonds, and commodities – a crack up boom, which has now gone bust.
Man produces and he consumes. When he produces more than he consumes he can save the excess production. This is known as savings or the accumulation of wealth (purchasing power). Money is saved for future use to transfer back into income when it is needed to buy things. There is a limit to what man can produce. Likewise, there is a limit to the excess production that can be saved over and above consumption.
This means the savings pool is limited. Credit is loaned from the savings pool; or should be in a sound monetary system. This in turn means that credit is limited – in a sound monetary system.However, in a world run by central bankers that believe in excess credit creation spurred on by diminishing interest rates and exotic credit derivatives, savings is actually discouraged – consumption and debt is pushed as the opiate of the people. Central bankers have embarked on a zero interest rate policy in a mad dash to hell. Currency devaluation is taking place at unprecedented levels. Money is being destroyed.
In a sound monetary system, as the savings pool is drawn down through lending, savings become scarcer. A higher rate of interest results to induce savers to part with their savings. In other words – the greater the demand for credit – the greater is the rate of interest. This puts a natural check on the amount of credit extended. In today’s new world order we have just the opposite: greater extension of credit by lower and lower interest rates. This is misguided monetary policy of the highest order. It will end badly if not fixed. There are answers.
Highway to Hell
Savings are at historical record LOWS – yet debt levels are at historical record HIGHS. Interest rates are hitting record LOWS. How can this be? This is not a natural order; it is a man made or contrived order – a new world order: wealth transference from the many to the few. Perhaps this is why there is a credit crisis. Perhaps this is why the U.S. has gone from the greatest creditor nation in the world to the greatest debtor nation.
Total debt in the United States is $53 TRILLION dollars, which is almost 500% of net national income. We owe foreign entities 12.5 trillion or 24% of the total. Does this sound like our standard of living is increasing or decreasing?
We have come to a fork in the road. Ludwig von Mises stated: "There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved."
The first alternative is deflation. The second is hyperinflation. Welcome to the new world order, where debt is money and money debt.
Many believe that central bankers have unlimited powers, that they can conjure up not only the supply of money, but the demand for it as well. This is a grave mistake – an illusion of intended consequence.
The Fed is able to increase the money supply, but they cannot determine exactly how or where it will be used in the economy. In a falling interest rate environment the action is in the bond market. The bond market sucks up the badly needed capital that should be flowing to the producing sector of the economy.
Although interest rates are falling, businesses find it difficult to pay off debt borrowed at higher rates. The bond market mugs the productive sector. As interest rates fall, the value of debt rises. If it continues for too long, businesses are forced to liquidate or go bankrupt. We are witnessing this occurring at an alarming rate around the world. These are classic examples of mal-investments gone astray.
Markets and asset prices have been distorted by excess credit and money creation. Global asset prices are mispriced, and this is especially true of the huge toxic wasteland of debt derivatives: about $600 trillion just on the books of the BIS. No one knows how much has occurred on the OTC market, as there is no transparency reporting requirements made public.
Stuff needs to be re-priced. Markets need to be settled. The problem is no one knows what (if anything) the stuff is worth. That’s why certain assets are illiquid – no one wants them. The Fed and the Treasury are now the lender and buyer of last resort – robbing Peter to pay Paul. This is simply wealth transference. The productive sector of the economy is being pillaged and plundered by the financial sector via structured finance. Capital is looted from the former and given to the latter.
In a paper fiat system the supply of money tends to increase more than the demand for it. In other words – monetary inflation is the “norm.” Bernanke has said that the Fed has the ability to create as much money as needed. This means that an unlimited supply of money is paired off against a limited demand for money, even if demand is increasing.
As monetary inflation occurs, debasement of the currency takes place and loss of purchasing power results. Our money is continually becoming worth less and less. It requires more units of money to buy the same amount of goods. Because more units of money (supply) are needed, the demand for money increases. Bernanke has said: no problem, we will create all the money you want.
As the money supply (quantity) increases to keep up with the rising demand for money, even more purchasing power is lost, which requires further units of money (supply) to make up for the loss of purchasing power; and the cycle keeps repeating. It becomes a self-fulfilling prophecy of currency devaluation and destruction.
Soon it is discovered that the purchasing power of money is falling faster than the demand for money is rising. What was an unlimited supply of money meeting a limited demand for money suddenly becomes an unlimited demand for money meeting a limited supply of money. Money cannot be created fast enough to make up for the loss of purchasing power.
Suddenly interest rates start to rise, as do prices. But the rise in interest rates does not support the currency. The purchasing power of the currency falls in spite of higher interest rates. Slowly panic sets in. People can’t spend their money fast enough – before it loses more purchasing power. The race to hell begins.
Now the monetary beast of inflation turns upon itself: suddenly what was an unlimited demand for money meeting a limited (although ever-increasing) supply of money, now becomes no demand for money, as the market correctly perceives that no amount (quantity) of money can make up for the loss of purchasing power (quality) destroyed by the debasement of the currency.
The gig is up. The fraud is seen for what it is. The currency is no longer accepted as the common medium of exchange. The use of the currency ends. The creature destroys itself by suicide – by hyperinflation. Hyperinflation is the death-knell of paper fiat debt-money.
Staring Into the Abyss
Deflation and hyperinflation are different in form, but are identical in substance – two sides of the razor sharp edge of debt. On either side lies the abyss. Deflation destroys debt through defaults and bankruptcies, hyperinflation by debasement and loss of purchasing power.
Which fork in the road will the economy take? One thing is certain: the decision is no longer in the hands of the producers as it should be. It now rests with the financial sector – the bond market: the debt market. In paper fiat land we live and breathe and have our being in a world of debt.
History is replete with bouts of deflation and hyperinflation. One distinction that history shows, however, is that hyperinflation ends the life of a currency – it no longer is accepted as the medium of exchange. Although deflation is wrought with pain and suffering, defaults, bankruptcies, job losses, depressions, etc.; the currency is not destroyed. The slate of debt is wiped clean and the game begins anew. Deflation prolongs the life of the currency; hyperinflation destroys the currency. The first allows the game to continue. The second ends the game. Bernanke and company have said that they will not allow deflation to occur. The only way to stop deflation or hyperinflation is to stop the inflation that comes first. Since the day the Fed was created it has repeatedly increased the supply of money. Subsequently, inflation has been baked into the cake.
If Bernanke holds true to his word then the Fed is going to attempt to stave off deflation by increasing the supply of money via inflation, which means further devaluation and loss of purchasing power for the U.S. dollar.
The Fed is going to try to walk the high wire act above the bottomless pit. The odds are against them winning such a dangerous game. Delicate balance and a deft touch are required. One wrong move can tip the scale in either direction.
Asset deflation is presently occurring. The Fed has responded by increasing their balance sheet 125%. There is more to come. Once the new credit plugs the hole in the dam of asset deflation – the increase supply building up will cause greater pressure until the dam finally bursts.
At the rate things are going a new cycle of excess credit creation will filter through the economy later in 2009, precipitating the final leg up of monetary inflation run out of control. Hyperinflation may be here by 2010. If and when it hits, the death of money will not be far behind. Steps need to be taken now – before it’s too late. The clock is running out.
The cause of the financial crisis is the paper fiat money system itself; and all the baggage it brings with it: inflation, debasement of the currency, mal-investment, devaluation, and loss of purchasing power. It is nothing more than a wealth transference mechanism that takes from the many and gives to the few.
I have written a book titled Honest Money that explains the history of our monetary system and how the Constitution mandates that our money is gold and silver coin – not paper money. The Constitution even goes out of its way to disallow paper money (bills of credit).
The answer to the financial crisis is a monetary system of gold and silver coin as mandated by the U.S. Constitution. Nothing less will affect any change in the present mayhem. Free samples of the book are available both in audio and text at my website: Honest Money Gold & Silver Report.
Come visit the website: Honest Money Gold & Silver Report