Disarm Public Before Money Becomes Worthless. The American Plan Of Servitude!

‘The More Power The Government Has…’

July 7, 2014 by Bob Livingston 

 1176 91

 

 23 1695

THINKSTOCK

“The more power the government has, the greater the risk to the people and the more dangerous the abuse.”–Edmund Burke, 1771.

Big government is organized crime in all but name, and the man in the street is numb to the universal risk in today’s world.

Politicians and bureaucrats are spending the world into oblivion while secretly hoping and expecting to escape debt with depreciated dollars: yours. The public is unaware.

Note that your “elected” politicians never talk about the ongoing depreciation (inflation) of paper money (U.S. dollars). They don’t want you to think about this. They would rather you think about Donald Sterling and his frivolous racial comments.

But you should be on high alert. Liquidity is not only negative; it is at its most negative level in history. Are we facing the second Great Depression or worse?

For the third time in 14 years, U.S. stocks are in a bubble and far more leveraged than ever before. There are now more corporate bonds outstanding in the U.S. than there are mortgage-backed securities. This is significant, and the heart of the next crisis and the debt bubble will be non-financial corporate debt.

Investors beware! Stockholders beware!

Thanks to the Fed, it now seems that we have a bubble in all asset classes much larger than 2007. The Fed and other central banks with their expansionary monetary policies, all designed to boost asset prices, are similar to a juggler who is trying to keep all his balls in the air. The Big One is coming and there will be no place to hide except in very depressed gold stocks.

For the past four years, we have seen hard financial times and deteriorating business; but let me remind you of history. We don’t get the classic ice age depression until the New York stock market tanks. I expect this in 2014, this year. Its setup is now! No matter the fundamentals, every stock market that is booming seems to paralyze the mass mind.

Keep your gold stocks, your silver and gold and, yes, your stash of cash close to your heart.

These things will be scarce!

The coming second Great Depression will be very high-risk to your assets and to you personally. Get a good dog and bond with him and keep him in your home at night along with your loaded gun. Don’t be scared; just be ready.

The more ready you are, the safer you will be. This will all make sense to you in time.

The Two-Party System

The American people keep losing because they keep believing that there are two political parties. This belief that there are two political parties is a great deception that covers over systemic rot.

The first road out of serfdom is to begin to see that the so-called two-party system is a one-party system, a government-party system. It is perfectly amazing how we hold to the two-party illusion. Most people just can’t shake the deception. It borders on dementia. The politicians love it!

I realized many years ago that no matter who got elected, things always kept going in the same direction. There were obvious political and economic solutions, but the one party with two names made certain that the established order did not change. The people love deception, and they cling to it.

The unofficial U.S. monetary policy is currency devaluation. This has been true since the changing of the monetary system into the private Federal Reserve System in 1913. It was all in the plan to slowly take trillions of dollars away from the American people without general public awareness.

The act of currency devaluation can be understood simply as printing new currency. This is not an innocent game, but is theft from every person in the world who holds or uses dollars.

Each time new money is added, either as paper money or computer entries, all money already in the system — whether in circulation or under the mattress — is worth less. It is an unannounced and insidious process that covers theft on a grand scale.

This is, in fact, a scheme of the ongoing theft and transfer of the savings and assets of Americans to the banker elite. No Representative or Senator ever warned of this massive silent transfer of wealth.

As currency is diluted and gets weaker, it buys less and prices go up at the grocery store. The result is that people confuse cause and effect. They naively think that rising prices is simple price inflation, but it is actually the result of currency devaluation, meaning the banking system stole your purchasing power by and through new money printing.

What do the banking elite call money printing? They use words and terms that disguise their money printing so the general public doesn’t understand. Their buzzword is “quantitative easing.” This stealth money printing has a very serious effect, namely the ultimate and total debasement of the currency and the general destruction of savings and impoverishment of the people.

There are numerous instances in history where the population was made poor and hungry because greedy monetary authorities printed paper money into worthlessness. It is now happening in America.

American dollars have been loosed on the world as pure fiat currency since President Richard Nixon closed all gold transfers to foreign countries in 1971. Now the chickens are coming home to roost. We are at the end of our system of debt. And of course the crowd is oblivious to their slow impoverishment.

An impoverished people is easy to control. Especially one that has no guns — hence the ongoing effort to disarm us.

Could The End Be Near For The US Dollar Being The Reserve Currency Of The World. How Will That Effect You?

Who Is The New Secret Buyer Of U.S. Debt?

May 20, 2014 by Brandon Smith 

 325 35

 

 3 658

PHOTOS.COM

On the surface, the economic atmosphere of the U.S. has appeared rather calm and uneventful. Stocks are up, employment isn’t great but jobs aren’t collapsing into the void (at least not openly), and the U.S. dollar seems to be going strong. Peel away the thin veneer, however, and a different financial horror show is revealed.

U.S. stocks have enjoyed unprecedented crash protection due to a steady infusion of fiat money from the Federal Reserve known as quantitative easing. With the advent of the “taper”, QE is now swiftly coming to a close (as is evident in the overall reduction in treasury market purchases), and is slated to end by this fall, if not sooner.

Employment has been boosted only in statistical presentation, and not in reality. The Labor Department’s creative accounting of job numbers omits numerous factors, the most important being the issue of long term unemployed. Millions of people who have been jobless for so long they no longer qualify for benefits are being removed from the rolls. This quiet catastrophe has the side bonus of making it appear as though unemployment is going down.

U.S. Treasury bonds, and by extension the dollar, have also stayed afloat due to the river of stimulus being introduced by the Federal Reserve. That same river, through QE, is now drying up.

In my article The Final Swindle Of Private American Wealth Has Begun, I outline the data which leads me to believe that the Fed taper is a deliberate action in preparation for an impending market collapse. The effectiveness of QE stimulus has a shelf-life, and that shelf life has come to an end. With debt monetization no longer a useful tool in propping up the ailing U.S. economy, central bankers are publicly stepping back. Why? If a collapse occurs while stimulus is in full swing, the Fed immediately takes full blame for the calamity, while being forced to admit that central banking as a concept serves absolutely no meaningful purpose.

My research over many years has led me to conclude that a collapse of the American system is not only expected by international financiers, but is in fact being engineered by them. The Fed is an entity created by globalists for globalists. These people have no loyalties to any one country or culture. Their only loyalties are to themselves and their private organizations.

While many people assume that the stimulus measures of the Fed are driven by a desire to save our economy and currency, I see instead a concerted program of destabilization which ismeant to bring about the eventual demise of our nation’s fiscal infrastructure. What some might call “kicking the can down the road,” I call deliberately stretching the country thin over time, so that any indirect crisis can be used as a trigger event to bring the ceiling crashing down.

In the past several months, the Fed taper of QE and subsequently U.S. bond buying has coincided with steep declines in purchases by China, a dump of one-fifth of holdings by Russia, and an overall decline in new purchases of U.S. dollars for FOREX reserves.

With the Ukraine crisis now escalating to fever pitch, BRIC nations are openly discussing the probability of “de-dollarization” in international summits, and the ultimate dumping of the dollaras the world reserve currency.

The U.S. is in desperate need of a benefactor to purchase its ever rising debt and keep the system running. Strangely, a buyer with apparently bottomless pockets has arrived to pick up the slack that the Fed and the BRICS are leaving behind. But, who is this buyer?

At first glance, it appears to be the tiny nation of Belgium.

While foreign investment in the U.S. has sharply declined since March, Belgium has quickly become the third largest buyer of Treasury bonds, just behind China and Japan, purchasing more than $200 billion in securities in the past five months, adding to a total stash of around $340 billion. This development is rather bewildering, primarily because Belgium’s GDP as of 2012 was a miniscule $483 billion, meaning, Belgium has spent nearly the entirety of its yearly GDP on our debt.

Clearly, this is impossible, and someone, somewhere, is using Belgium as a proxy in order to prop up the U.S. But who?

Recently, a company based in Belgium called Euroclear has come forward claiming to be the culprit behind the massive purchases of American debt. Euroclear, though, is not a direct buyer. Instead, the bank is a facilitator, using what it calls a “collateral highway” to allow central banks and international banks to move vast amounts of securities around the worldfaster than ever before.

Euroclear claims to be an administrator for more than $24 trillion in worldwide assets and transactions, but these transactions are not initiated by the company itself. Euroclear is a middleman used by our secret buyer to quickly move U.S. Treasuries into various accounts without ever being identified. So the question remains, who is the true buyer?

My investigation into Euroclear found some interesting facts. Euroclear has financial relationships with more than 90 percent of the world’s central banks and was once partly owned and run by 120 of the largest financial institutions back when it was called the “Euroclear System”. The organization was consolidated and operated by none other than JP Morgan Bank in 1972. In 2000, Euroclear was officially incorporated and became its own entity. However, one must remember, once a JP Morgan bank, always a JP Morgan bank.

Another interesting fact – Euroclear also has a strong relationship with the Russian government and is a primary broker for Russian debt to foreign investors. This once again proves my ongoing point that Russia is tied to the global banking cabal as much as the United States. The East vs. West paradigm is a sham of the highest order.

Euroclear’s ties to the banking elite are obvious; however, we are still no closer to discovering the specific groups or institution responsible for buying up U.S. debt. I think that the use of Euroclear and Belgium may be a key in understanding this mystery.

Belgium is the political center of the EU, with more politicians, diplomats and lobbyists than Washington D.C. It is also, despite its size and economic weakness, a member of an exclusive economic club called the “Group Of Ten” (G10).

The G10 nations have all agreed to participate in a “General Arrangement to Borrow” (GAB) launched in 1962 by the International Monetary Fund (IMF). The GAB is designed as an ever cycling fund which members pay into. In times of emergency, members then ask the IMF’s permission for a release of funds. If the IMF agrees, it then injects capital through Treasury purchases and SDR allocations. Essentially, the IMF takes our money, then gives it back to us in times of desperation (with strings attached). It should be noted the Bank of International Settlements is also an overseer of the G10. If you want to learn more about the darker nature of globalist groups like the IMF and the BIS, read my articles, Russia Is Dominated By Global Banks, Too, and False East/West Paradigm Hides The Rise Of Global Currency.

The following article from Harpers titled “Ruling The World Of Money,” was published in 1983 and boasts about the secrecy and “ingenuity” of the Bank Of International Settlements, an unaccountable body of financiers that dominates the very course of economic life around the world.

It is my belief that Belgium, as a member of the G10 and the GAB agreements, is being used as a proxy by the BIS and the IMF to purchase U.S. debt, but at a high price. I believe that the banking elite are hiding behind their middleman, Euroclear, because they do not want their purchases of Treasuries revealed too soon. I believe that the IMF in particular is accumulating U.S. debt to be used later as leverage to unseat the dollar and finalize the rise of their SDR currency basket as the world reserve standard.

The Bretton Woods System, established in 1944, was used by the United Nations and participating governments to form international rules of economic conduct, including fixed rates for currencies. The IMF was created during this shift towards globalization as the BIS slithered into the background after its business dealings with the Nazis were exposed. It was the G10, backed by the IMF, that then signed the Smithsonian Agreement in 1971 which ended the Bretton Woods system of fixed currencies, as well as any remnants of the gold standard. This led to the floated currency system we have today, as well as the slow poison of monetary inflation which has now destroyed more than 98 percent of the dollar’s purchasing power.

I believe the next and final step in the banker program is to reestablish a new Bretton Woods style system in the wake of an engineered catastrophe. That is to say, we are about to go full circle. Perhaps Ukraine will be the cover event, or tensions in the South China Sea. Just as Bretton Woods was unveiled during World War II, Bretton Woods redux may be unveiled during World War III. In either case, the false East/West paradigm is the most useful ploy the elites have to bring about a controlled decline of the dollar.

The new system will reintroduce the concept of fixed currencies, but this time, all currencies will be fixed or “pegged” to the value of the SDR global basket. The IMF holds a global SDR summit every five years, and the next meeting is set for the beginning of 2015.

If the Chinese yuan is brought into the SDR basket next year, and the dollar is toppled as the world reserve, there will be nothing left in terms of economic structure in the way of a global currency system. If the public does not remove the globalist edifice by force, the IMF and the BIS will then achieve their dream – the complete dissolution of economic sovereignty, and the acceptance by the masses of global financial governance. The elites don’t want to hide behind the curtain anymore. They want recognition. They want to be worshiped. And, it all begins with the secret buyout of America, the implosion of our debt markets and the annihilation of our way of life.

What Happens When QE Ends?

Economist Pento: When Fed Ends QE, Look Out

Wednesday, 30 Apr 2014 07:29 AM

By Michael Kling

Share:

  Get Short Link |

  Email Article |

  Comment  |

   Contact Us  |

  Print  

|  A   A  

• 0
  inShare

Elimination of the Federal Reserve's monthly asset purchases, known as quantitative easing (QE), will cause a stock market collapse and severe recession, predicts one economist.

That's because the Fed's tapering has ended QE's "wealth effect," which supported rising asset prices, writes economist Michael Pento, president of Pento Portfolio Strategies, on his blog.

In QE, banks have been selling higher-yielding Treasury and mortgage bonds to the Fed in return for "Fed credit" that pays a 0.25 percent rate, he explains. Banks then purchase bonds, stocks and real estate to attain higher yields but also because they expect the Fed to support prices by continuing to purchase huge amounts of assets.

"Of course, most on Wall Street fail to understand or refuse to acknowledge that ending QE will cause asset prices to undergo a necessary, but nevertheless healthy correction," writes Pento, who predicts a brutal recession starting later this year.

The Fed, which was buying $85 billion of bonds a month, began tapering this year, hoping to reduce its purchases by $10 billion at each meeting.

"Real estate and equity values have already lost their momentum, as the Fed is removing its massive support for these assets," Pento writes. Stocks are down and home prices dropped 0.33 percent, according to the Case-Shiller index. New home sales fell three months in a row and plummeted 14.5 percent in March.

"But Wall Street will try to convince investors that the spring allergy season — also known as the pollen vortex — is unusually bad this year," he writes. "Therefore, nobody wanted to go outside and purchase a new home, even after all the snow melted."

Market strategists think new banking lending will replace the Fed's asset purchases, but stricter regulations and higher capital requirements will stifle bank lending, he says. Plus, consumers are not motivated to borrow more, as household debt remains high and real disposable income is not growing.

Most experts don't share Pento's outlook. New Federal Reserve Chair Janet Yellen is off to a good start this year, says Villanova University Associate Professor of Economics Victor Li in an article for US News.

The transition from former Fed Chairman Ben Bernanke to Yellen has been smooth, and growth of QE asset purchases has dropped by a third, he notes.

"These actions have alleviated concerns that Yellen would steer the Fed toward a more dovish direction — meaning looser monetary policy — and these actions demonstrate her commitment to return the Federal Reserve’s enormous balance sheet to normalcy."


Related Articles:

• Robert Rubin: Fed's QE3 and the Unwinding of it Carry Great Risk
• Fed's Plosser 'Very Worried' About QE and Its Unwinding

© 2014 Moneynews. All rights reserved.

Is QE The Cause Of The Next Recession.

Peter Schiff to Newsmax TV: US Careens Toward Twin Crises

Tuesday, 18 Feb 2014 07:30 PM

By Dan Weil

Share:

A    A   |

   Email Us   |

   Print   |

   Forward Article  |

   Get Short Link

• 0
  inShare

Investors should overweight foreign stocks and underweight U.S. stocks, because the U.S. economy and financial system are headed for crisis, says Peter Schiff, CEO of Euro Pacific Capital.

"People have to look beyond the U.S. to try to get out of what's going to be a much worse financial crisis than what happened in 2008," he told John Bachman on "America's Forum" on Newsmax TV.

"It's going to be a dollar crisis, ultimately a Treasury bond crisis, and people need to look abroad and own real hard assets through stocks, but through international stocks with good dividend yields."

That's a much better strategy than "to be over-concentrated in overpriced, hyped-up U.S. stocks on the verge of what I see as a real economic collapse here," Schiff said.

As for emerging markets, they made a mistake in absorbing so many dollars created by the Federal Reserve's quantitative easing, Schiff says.

"We ran these huge trade deficits with the emerging markets. And then rather than allowing their currencies to rise, they fought this currency war where they tried to debase their own currencies," he said. "They imported our inflation and also mal-investments that temporarily screwed up their economies."

But here in the U.S., "we're going to be the submerging market, because when the dollar tanks, and it's very close to happening, Americans aren't going to be able to buy anything," Schiff said.

That's going to have a major impact on companies, he says. "Look at all of the companies that are reporting bad earnings here in the United States," such as McDonald's, Schiff said.

"It's America that's going to be the problem, because Americans are broke. We have no savings, we're leveraged up to the hilt, we're borrowing money just to keep our economic heads above water."

The rest of the world isn't doing too badly Schiff says. "They actually have savings. They are working. They are producing," he said.

"So they are going to be enjoying an appreciating currency market. They're going to be able to buy a lot of these products. It's America where the party is over. We're not going to be able to shop."

Meanwhile, Schiff says the 6.6 percent U.S. unemployment rate doesn't accurately reflect the sorry state of the American job market.

"So many people have just given up looking for work," he said. "They're so discouraged by the poor labor prospects that they're no longer being captured by the statistics or they're working part time but they really want full-time jobs."

Beyond unemployment, people are suffering from an escalating cost of living, Schiff says. "The government denies that there's inflation. But the real cost of living — food, energy, basic necessities — is rising rapidly as people's paychecks are diminishing in purchasing power."

Related Articles:

• Euro Pacific Capital CEO Peter Schiff: Gold Will Keep Rising This Year
• Peter Schiff: Weak Economy Will Force Fed to Reverse Tapering

© 2014 Moneynews. All rights reserved.

Economy Is In A Mess--But You Won't Hear It From The Obama-Centric Media

Is This The End Of The Phony Recovery?

January 3, 2014 by Bob Livingston 

 27 3

 

 3 143

PHOTOS.COM

While the mainstream media continue to push the meme that the economy is in (slow) recovery, some important facts point out that things are not as rosy as you are being told. In fact, most Americans feel the recessionnever ended.

An analysis of retail sales post-Christmas indicates that in-store retail sales decreased more than 3 percent over the same week last year. Retail brick-and-mortar shopper traffic decreased by 21.2 percent over the same period in 2012. The lack of in-store sales didn’t translate to an increase in Web sales.

In September, homes sales dropped more than at any time in the last 40 months. New mortgage applications dropped 66 percent from an October 2012 peak, reaching a lownot seen in 13 years.

We are now seeing business and personal debt reaching levels not seen since 2007, right before the last crash. Household incomes have not improved at all and, in fact, have dropped. The unemployment numbers are completely cooked. The unemployment rate will drop again due to the ending of benefits to 1.3 million workers who will no longer be counted.

There are 107 million Americans on government assistance. About 50 million Americans get food stamps. The U.S. population has increased by 16 million people since 2006, but there are 1.5 million fewer Americans employed today. Workforce participation rates are the lowest in decades.

According to the consumer price index, the economy is growing at about 2.5 percent. But official inflation is also 2.5 percent. Real inflation is closer to 8 percent.

Yes, the stock market is hitting record highs. But that’s because the Federal Reserve is dumping $85 billion a month into the economy through QE to infinity to prop up the banksters and the market.

The Fed has inflated your dollar away to nothing. One dollar is now equal to 5 cents.

All so-called “growth” in the economy can be directly attributed to inflation. Inflation is not increasing prices, which is a symptom of inflation, but an increase in the money supply.

Inflation is a hidden tax on the wealth of the people.

Helicopter Ben Bernanke has succeeded in creating the illusion of a recovery. The illusion is about to end.