Money as Debt 2!!!

If you like the earlier post of Money as Debt here is Money as Debt 2....

Update on U.S. Dollar

Things are going as planned....

Here is an update of the U.S. Dollar chart I posted a few weeks ago. I had called for a continued fall in the dollar to the uptrend line. Looks like that was dead on. We are now sitting on that uptrend line.

U.S. Dollar Index

A turn in the dollar is imminent. With the turn in the dollar will come a turn in the stock market and we will position ourselves accordingly with a long position in the dollar and short positions in the stock market.

Don't Fear Speaking Out Against The Government

"There is no nation on earth powerful enough to accomplish our overthrow. Our destruction, should it come at all, will be from another quarter. From the inattention of the people to the concerns of their government, from their carelessness and negligence. I must confess that I do apprehend some danger. I fear that they may place too implicit a confidence in their public servants and fail properly to scrutinize their conduct; that in this way they may be made the dupes of designing men and become the instruments of their own undoing."

-Daniel Webster

Maybe we, Americans, should take a cue from Representative Joe Wilson. We need to speak out against our government. There is something clearly wrong in the country. The monetary system is by far the greatest fraud perpetrated upon the American people in history. As evidenced by this video:





We need to stand up and demand change. A reform of the monetary system could make it possible for everyone to have a chance in life. It could end our national debt. It could potentially end poverty in the United States (without paying taxes for welfare). It could also end the needs for 40% tax rates. No longer would we have to lose our wealth through both taxes and inflation. Let's return to the sound money of the Constitution.

There is a reason the Founding Fathers set up our money system the way they did.

Here is where it says in the Constitution that the powers the Federal Reserve exercises are unconstitutional and downright illegal:

Article 1. Section. 8. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

• To borrow Money on the credit of the United States; (Congress does this, but so does the Federal Reserve...a PRIVATE banking institution)

• To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; (Congress does not have the power to coin our money anymore...The Federal Reserve does...a PRIVATE banking institution, and they charge us interest to use our OWN money!!!)

• To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years; (How long have we been in Afghanistan and Iraq? 6 years going on 7? Wow!!)

Article 1. Section . 9. No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time. (First of all, The Federal Reserve has NEVER been audited. The Federal Reserve, on a daily basis, prints and distributes U.S. dollars all over the world. In one instance, detailed by the video below, The Federal Rerserve gave $3,000 dollars for every man, woman, and child in New Zealand to the Central Bank of New Zealand.)





Article 1. Section 10. No State Shall...coin Money; emit Bills of Credit; make anything but gold and silver Coin a Tender in Payment of Debts.... (Granted, carrying gold and silver is a hassle, but a dollar bill can easily be back by gold or silver. President Kennedy tried it in 1963, check out executive order 11110, dollar bills today are not backed by anything, they are debt created out of thin air by a bank, watch the video if you do not understand this.)

Our Founding Fathers warned us about always protecting the control of our money. They hated central banking with a passion and feared it. Were their fears founded? Did they have a reason to hate the banks? I think so. As evidence I give you these quotes to consider:

"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."

-Thomas Jefferson

"The refusal of King George III to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators was probably the prime cause of the revolution."

-Benjamin Franklin

"The bold effort the present (central) bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it."

-Andrew Jackson

"If Congress has the right under the Constitution to issue paper money, it was given to be used by themselves, not to be delegated to individuals or corporations."

-Andrew Jackson

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States"

-Sen. Barry Goldwater (Rep. AR)

"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."

-Congressman Charles A. Lingbergh Sr., 1913

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it".

-Congressman Louis T. McFadden, 1932

"We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."

-Robert A. Hamphill, Atlanta Federal Reserve Bank

"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations."

-Lewis vs. United States, 680 F. 2nd 1239 9th Circuit 1982

Let's stand up and do something about this diabolical institution!! Vote for Ron Paul in 2012!!

We need to End The Fed!!!

http://endthefedusa.ning.com/ - End The Fed website

http://www.govtrack.us/congress/bill.xpd?bill=h111-1207 - Support Ron Paul's Audit The Fed Bill, call your congressman and demand cosponsorship!!!

The "Pandemic" That Cried Wolf....

I apologize for the length of this post but this is a MUST READ POST!!!



“Only a crisis - actual or perceived - produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable.”

-Milton Friedman American economist, statistician, public intellectual, and a recipient of the Nobel Memorial Prize in Economics



We need to clarify our position on the swine flu. As you probably know we are not doctors so don’t base your health decisions off this post or any posts for that matter. We have heard kids in public school system are being pressured into signing a contract to agree to take the immunization shot which is disturbing considering the source.



Flu Facts

•In a normal year Center for Disease Control and Prevention (CDC) estimates 36,000 people die from Influenza and over 200,000 are hospitalized EACH YEAR. Source

•So far this year the H1N1 has accounted for only 44,555 cases resulting in 1,588 deaths; this is a death rate of 5.19 per million with 267.89 Cases per million in the US. Source



This numbers come from the CDC which is considered a very reliable source but a three-month-long investigation by CBS News revealed some very different facts. The CBS study found that H1N1 flu cases are NOT as prevalent as feared. The CBS article states:



"If you've been diagnosed "probable" or "presumed" 2009 H1N1 or "swine flu" in recent months, you may be surprised to know this: odds are you didn't have H1N1 flu. In fact, you probably didn't have flu at all."

"The results reveal a pattern that surprised a number of health care professionals we consulted. The vast majority of cases were negative for H1N1 as well as seasonal flu, despite the fact that many states were specifically testing patients deemed to be most likely to have H1N1 flu, based on symptoms and risk factors, such as travel to Mexico."



CBS reports that in late July 2009 the CDC advised states to STOP testing for H1N1 flu, and they also stopped counting individual cases. Their rationale for this, according to CBS News, was that it was a waste of resources to test for H1N1 flu because it was already confirmed as an epidemic. So just like that virtually every person who visited their physician with flu-like symptoms since late July was assumed to have H1N1, with no testing necessary because, after all, there's an epidemic. It's interesting to note that at the same time as the CDC decided the H1N1 epidemic warranted no further testing for cases due to its epidemic status, Finnish health authorities actually downgraded the threat of swine flu. Link



Source



The graph above shows that a lot of people are being told they probably have the swine flu when they actually do not. This is propagating a “pandemic” that is not a pandemic. We all know the WHO has declared the H1N1 a pandemic but just how reliable is the WHO’s pandemic rating system? Let’s start off with a couple dates.





•On April 29th, twelve days after those two first cases were discovered WHO announced a Level 5 Worldwide state of alert for the prevention of a pandemic. What does this mean? Level 5 is quite high, which is one below the highest level possible. Level 6 means the pandemic is already happening. 1 ½ months later WHO announces Level 6, the maximum level, initiating a global pandemic of H1N1. Some might say ask: Why isn’t there a pandemic every year, if the yearly virus is worse than this new virus? The answer is: in May 2009 the WHO changed the definition of “pandemic” (link) from its then current definition of an infection by an infectious agent simultaneously present in different countries at the same time and with a significant mortality ratio to the proportion of the infected population. They removed from the definition, this mortality characteristic. Therefore the new definition went to describe the pandemic as a simultaneous infection present in various countries and carrying an infectious agent showing any novelty characteristic, thus leaving us unable to know the type of immunity present within the population. This is a definition I’m quoting from the British Medical Journal. Changing the definition of such strong emotional words is a logical fallacy of epic proportions but not in the scope of this article. I cringe to say this but we’ll assume it’s blatantly obvious and move on.

•April 26, 2009, USA declares a Public Health National Emergency based on twenty cases of infection and zero deaths.(part 1)

•October 23, 2009, President Barrack Obama finalizes the declared the swine flu outbreak a national emergency, empowering the health secretary to suspend federal requirements and speed up treatment. His declaration authorizes Health and Human Services Secretary Kathleen Sebelius to bypass normal federal regulations so health officials can respond more quickly to the outbreak. (part 2)

•WHO is an International Organization that normally issues recommendations. Then it’s assumed that each sovereign country applies or not the recommendations following its own criteria, its own circumstances, and its own internal research. Now, in case of a pandemic, WHO can give orders. Well, you may ask, what terrible thing may arrive? Well, the mandatory vaccination, which if you refuse could result in a fine up to $1000/day, or you go to prison. Forced vaccinations leave you with absolutely no choice and are one of the ultimate violations of our personal freedoms regarding our decisions about what we put in our own bodies.









This brings us to the vaccine. A source at the NIH admitted that the vaccine(s) were one of the fastest human vaccines in development, according to CBS correspondent Sharyl Atkinson. In order to get these vaccines to market so quickly, the United States government granted "liability protection" to swine flu vaccine manufacturers. This protection allowed the drug companies to fast-track production by adding unlicensed components. In other words you will be taking a vaccine has been licensed without normal safety regulations - and if you suffer adverse reactions, the drug manufacturer is immune from legal liability. This unprecedented power to experiment on the population was given to the drug manufacturers with the passing of the 2006 Public Readiness and Emergency Preparedness Act (the PREP Act). This act allows the DHHS Secretary to invoke almost complete immunity from liability for manufacturers of vaccines and drugs used to combat a declared public health emergency, which the "swine flu pandemic" qualifies as. The most problematic aspect of the PREP Act is that it removes all financial incentive to make a safe product. In fact, vaccine makers now have a negative incentive to test it for safety, because if they are aware of problems, then they could potentially be held liable for willful misconduct! As long as they can prove they "didn't know" of any problem, they will not be liable for damages. Hence it's in their best interest to know as little as possible about the adverse reactions it might cause. It seems unimaginable, but you and your children are now being enlisted as an unpaid human trial subjects for experimental, fast-tracked vaccines like the swine flu vaccine. Source





The risks of these, and the current fast-tracked swine flu vaccine, are truly unknown at this time. Source



There are some concerns with some of the ingredients found in the vaccines and some are very troubling. Some shots will contain the mercury-based preservative thimerosal, which some believe to be harmful to children. The CDC claims there is no evidence of this. However, a US Congressional Report on Mercury in Medicine, released in 2003, claimed that there is a link between thimerosal and the development of autism, along with other brain development disorders. Additionally, some vaccines use squalene, an immune adjuvent that causes the immune system to react in a powerful and unnatural way. The purpose is to reduce the amount of vaccine needed per dose. The American Journal of Pathology published a study in 2000 which cited a possible link between adjuvants and arthritis and other chronic inflammatory diseases. Critics claim the use of adjuvants was another unsafe result of the vaccine being rushed out the door. Source



According to Dr. Kent Holtorf, an infectious disease expert, the vaccines with thimerosal has 25,000 times the amount of mercury then would be considered toxic by the FDA if it were in food or water. Remember since this is an “epidemic” it does not have to pass normal FDA standards.



With regards to autism and vaccines there are different reports studying Amish communities due to their extremely low autism rate (1 in 15,000 compared to the nation average of 1 in 175). Amish tend to be home schooled and do not take vaccines. You can read more here and here. Excerpt: “Dr. Mayer Eisenstein told us he is not aware of any cases of autism in never-vaccinated children; the national rate is 1 in 175, according to the CDC. “We have a fairly large practice,” Eisenstein told us. “We have about 30,000 or 35,000 children that we’ve taken care of over the years, and I don’t think we have a single case of autism in children delivered by us who never received vaccines. “We do have enough of a sample,” Eisenstein said. “The numbers are too large to not see it. We would absolutely know.” Keep in mind Amish refrain from a lot more than vaccines so take the above with a grain of salt.



Conclusion: I am not against vaccines by any means, just unnecessary ones. I think this is an unnecessary vaccine and while it might not seem like this is a big deal I will explain why it could be. Assuming this will be the normal flu season and the normal amount of deaths will occur two possibilities I could easily see happen.



•The Obama administration will say they saved the world from the swine flu when they didn’t. This will give them the benefit of the doubt next year when there’s a new “pandemic” and they have the ability, or will give the states the ability, to mandate vaccines. This of course would be un-American and against everything America stands for. (Freedom if you’ve forgotten)



•The Obama administration, CDC, and WHO will all be ridiculed for their overreaction and will lose their creditability. This is by far the worse of the two scenarios because if/when there is a legitimate pandemic people will assume they are overreacting and ignore their recommendations since they assume the new definition of “pandemic”.

The OTHER Economic Crisis

Check out the full article here: Courtesy of zerohedge

You know all about the subprime, alt-a, option arm, and commercial real estate crises. You're well-aware of the house of cards built with credit default swaps, securitized assets and other exotic investments. You've heard about the massive debt overhang threatening individuals, companies and the country as a whole, and the massive de-leveraging which is still to occur. You're aware of the soaring unemployment rate, the tapped out consumer, and many other economic problems.

But do you know about the demographic crisis?

Specifically, they say that the basic health of any country's economy is largely driven by the number of its citizens who are in their peak spending years.

For example, the peak Japanese spending range has been estimated to be comprised of 39-43 year olds. The more 39-43 year olds Japan has at any given time, the more consumer spending there will be, as these are the folks who are the big spenders in Japan. Dent argues that the Japanese economy will tend to grow when the number of 39-43 year olds grows, and to shrink when it shrinks.

In the U.S., Dent says, 46-50 year olds are the biggest spenders, because that is when - on average - they are paying for their kids' college, paying mortgage on the biggest house they will own during their life, and making other big-ticket purchases.

Claus Vogt agrees, saying that - all other things being equal - the country with the youngest population will experience the biggest growth in the future, as it will have the highest percentage of productive people in the days ahead (Modigliani's age categories are somewhat different from Dent's and Vogt's, but - in general - people are having children later than they were in 1985).

Whether or not you believe Modigliani , Dent and Vogt, it should be obvious that countries with a large percentage of elderly people and a small proportion of productive workers will have less productive output and a larger demand for social services than those with a higher percentage of workers. It should also be obvious that this will tend to drag down the economy.

What does all this mean?

Well, initially, it means that - in addition to everything else they have going for them - 2 of the BRIC countries (Brazil and India) have much more favorable demographics than the United States. So they are at a competitive advantage to America for demographic reasons in addition to the other reasons that people write about.

Moreover, Dent and another of the main writers focusing on the economic effect of age demographers - Daniel Arnold - say that America's aging demographics point to a major depression.

This is going to be a serious problem in the future, as it is for all countries when they experience population cycles. I encourage you to read the full article. Link at the top of the page.

Six Articles Showing The "Recession" Isn't Ending

• One Sixth of All Construction Loans in Trouble (MISH)
  
• FDIC Proposes Six-Month Extension for Debt Guarantees (Bloomberg)
• Record drop in consumer credit outstanding in July (Wells Fargo)
• Food Stamps Reach 33.8 Million in April, 5th Consecutive Monthly Record (MISH)
  
• The Fed Can't Monitor 'Systemic Risk' (WSJ)
• Greenspan, "Market Crisis Will Happen Again" (MISH)

Chart of Job Losses in Post WWII Recessions (MISH)

Excerpt from: Greenspan, "Market Crisis Will Happen Again" (MISH)

However despite his belief in a brighter future, the former Fed chief did warn that the path to recovery should steer clear of protectionism as applying strict regulations could hamper recent developments that have opened up global trade.

"The most recent endeavour to re-regulate is a reaction to the crisis. The extraordinary impact of these global markets is making a lot of financial people feeling they have lost control.

"The problem is you cannot have free global trade with highly restrictive, regulated domestic markets."

Ding Ding Ding we have a winner. Greenspan is correct "you cannot have free global trade with highly restrictive, regulated domestic markets."

And what bigger regulation is there than the Fed itself? The answer is "none". The Fed micro-mismanaged this crisis by its manipulative interest rate policies. Yet for all his faults, and Greenspan has many, the one thing he has consistently gotten correct is his stance in support of free trade.

Indeed, one of the biggest risks now to the global economy is a huge round of protectionism. Unfortunately, it's probably only a matter of time before Congress overreacts. That's human nature, Congressional style.

Blamed by some for not doing more to prevent the crisis, Mr Greenspan denied any responsibility for the problems gripping the global economy. "It's human nature, unless somebody can find a way to change human nature, we will have more crises and none of them will look like this because no two crises have anything in common, except human nature."

Human nature is is what allows people like Greenspan to never see their own role in the mess they created. It's human nature to blame someone else. The way to get Greenspan and Bernanke out of the way so that their "human nature" does not add to the problems is to abolish the Fed.

Are Our Banks Really Solvent?

"It Could Get Ugly Very Fast": Banking Crisis Grows, FDIC's Funds Shrink

Source: Yahoo! Finance

The failure of some of the nation's largest banks in 2008, including Washington Mutual, Wachovia and IndyMac, and scores of smaller banks this year came at a price. The Federal Deposit Insurance Corporation's fund that insures the country's deposits now stands at $10.4 billion, down from $45.2 billion the prior year.

Jim Bianco, president of Bianco Research in Chicago doesn't believe depositors need worry, because the government has the power of the printing press to make good on FDIC insurance. But he is troubled. "As a taxpayer you should be concerned because this could be another potential drag and possibly a significant drag on the U.S. Treasury and bloat the already record federal deficit," he says, echoing a Wall Street Journal editorial on Tuesday, suggesting the FDIC may be the next entity in need of a bailout.

84 banks have failed this year, and the problem list of banks continues to grow, 416 as of the end of June. "They've got a bunch of huge open ended liabilities should the banking system continue to deteriorate and it could get ugly very, very fast for them," Bianco worries. As we learned during this banking crisis, these things can pick up steam in a hurry.

With that in mind the FDIC is forced to raise their insurance fees, putting added pressure on already struggling smaller and regional banks. Community bankers Bianco speaks to, he claims are being punished twofold. "They're livid about it because a lot of these guys are just barely hanging on and their net incomes are pretty much equal to the fees they have to pay to the FDIC." Plus, the troubles facing the FDIC are a result of toxic assets, "that a lot of community banks never, not only trafficked in, but don't understand to this day."

The economic impact is significant: Without local banks lending, hopes of a V-shaped recovery are slim to none. Community banks are the ones "lending on Main Street USA" and Bianco says, if they're stressed the financial system won't return to full health "for the foreseeable future."