What is more frightening, then the loss of your money. Since most people have, some meager amount held in some form of a financial institution, the prospect of the banksters’ cabal placing a charge against your account for the mere privilege of maintaining a deposit, is horrible. The Business Insider warns, In The Future, You May Have To Pay The Bank To Hold Your Money, and raises a very dreadful prospect.
“In recent weeks, economists have discussed the idea of how to implement a negative interest rate while preventing people from hoarding paper currency. Economist Miles Kimball has discussed creating an electronic currency and having an exchange rate between it and dollar bills. Others have discussed going cashless and eliminating paper currency altogether.”
Negative interest rates simply mean it will cost you, in fees or service charges, to hold money in banking accounts. Examine Professor Kimball’s ivory tower justification for seizing the value and purchasing power of your savings.
“University of Michigan economist Miles Kimball has developed a theoretical solution to this problem in the form of an electronic currency that would allow the Fed to bring nominal rates below zero to combat recessions. He’s been presenting his plan to different economists and central bankers around the world. Kimball has also written repeatedly about it and was recently interviewed by Wonkblog’s Dylan Matthews.”
Now dig deep into the mind of a mentally ill pseudo intellectual to see just how far from rational money policy such monetary eggheads go to provide cover for the fractional reserve central bankers.
“If we repealed the “zero lower bound” that prevents interest rates from going below zero, there would be no need to rely on the large scale purchases of long-term government debt that are a mainstay of “quantitative easing,” the quasi-promises of zero interest rates for years and years that go by the name of “forward guidance,” or inflation to make those zero rates more potent.”
This threat is a continuation from the initial trial balloon that appeared in the Financial Times. A video rant about, Banks to Start Charging You on Deposits, goes ballistic with outrage that the money-centered banks are emboldened as to telegraph their intentions of raiding the nest egg savings of depositors. While the justifiable emotion is understandable for a beleaguered public, the economic aftermaths of interjecting massive QE reserves is explained well by Zerohedgein recent reports with the accompanied chart.
“Furthermore, contrary to what the hypocrite banker said that ”the danger is that banks are pushed into riskier assets to find yield“, banks are already in the riskiest assets: just look at what JPM was doing with its hundreds of billions in excess deposits, which originated as Fed reserves on its books – we explained the process of how the Fed’s reserves are used to push the market higher most recently in “What Shadow Banking Can Tell Us About The Fed’s “Exit-Path” Dead End.”
What the real danger is, is that once the Fed lowers IOER and there is a massive outflow of deposits, that banks which have used the excess deposits as initial margin and collateral on marginable securities to chase risk to record highs (as JPM’s CIO explicitly and undisputedly did) that there would be an avalanche of selling once the negative rate deposit outflow tsunami hit.”
Hence, this move to prepare the bank customer for another hosing by imposing negative rates actually is a desperate attempt to keep the derivative “day of reckoning” from hitting. This strategy will not work. In the Negotium article, Low Interest Rates Impoverish Savers, makes the point: “Designed lowering of our standard of living is visible at every turn. The money-centered banks recapitalized their balance sheets at the expense of the passbook accounts customers.”With the expectation that bank accounts will actually experience debit fees for parking money will result in a massive outflow of capital. Where will the money go? Will the banks allow the return of your deposits in cash or will they impose significant costs and delay withdrawals?
Consider that under a banking system, which automatically reduces your balances, the acceleration of stripping your net worth goes into high gear. No sane individual would accept this theft willingly. However, the transition to a cashless economy might well inflict a call back of cash (Federal Reserve Notes) in circulation for an enforced substitute legal tender. Or else some variation of the “killer” Kimball electronic compulsory account may be imposed under strict governmental supervision.
Under such a circumstance, the mandatory medium of exchange strips all personal ownership from the individual. Money, in whatever form it takes, no longer will be your own property.
Negative interest rates institutionalize systemic inflation into every transaction. Throughout history, usury is condemned for charging interest on lending. What term should be used for paying no interest on capital saved? Anthony Migchels argues in Our Chains are Forged by Usury, that the objective is to create an interest-free money supply. Much like the Kimball electronic currency, the Migchels alternative resides in his own twisted hermitage, read accordingly.
“The problem is not the creation of money! Quite the opposite: it’s marvelous that we never need to have a shortage of money. The problem is when the bookkeeper starts raping the debitor with interest for no other reason than the associated minus.”
While debt is the central issue in all financial bubbles, the solution is not to destroy wealth creation through capital saving. Until a universal model of wizardry or alchemy is adopted that creates a stable store of value, independent from work, ingenuity or greed; expectations of an interest free currency are pipe dreams.
The benefits from negative interest rates all go to the banksters. The borrower never sees FREE interest loans, nor does the saver earn a fair rate of return. The maxim remains, Those with the Gold, Make the Rules, is no different in the age of the New World Order of central banking. Starving the saver is negative for the rest of us.
Former Treasury Secretary Timothy Geithner, a protege of Treasury Secretaries Rubin and Summers, has received his reward for continuing the Rubin-Summers-Paulson policy of supporting the “banks too big to fail” at the expense of the economy and American people. For his service to the handful of gigantic banks, whose existence attests to the fact that the Anti-Trust Act is a dead-letter law, Geithner has been appointed president and managing director of the private equity firm, Warburg Pincus and is on his way to his fortune.
A Warburg in-law financed Woodrow Wilson’s presidential campaign. Part of the reward was Wilson’s appointment of Paul Warburg to the first Federal Reserve Board. The symbiotic relationship between presidents and bankers has continued ever since. The same small clique continues to wield financial power.
Geithner’s career is illustrative. In the 1980s, Geithner worked for Kissinger Associates. In the mid to late 1990s, Geithner served as a deputy assistant Treasury secretary. Under Rubin and Summers he moved up to undersecretary of the Treasury.
From the Treasury he went to the Council on Foreign Relations and from there to the International Monetary Fund (IMF). From there he was appointed president of the Federal Reserve Bank of New York, where he worked to make banks more profitable by allowing higher ratios of debt to capital, thus contributing to the financial crisis.
Geithner arranged the sale of the failed Wall Street firm of Bear Stearns, helped with the taxpayer bailout of AIG, and rejected saving Lehman Brothers from bankruptcy in order to create the crisis atmosphere needed to more fully subordinate US economic policy to the needs of the few large banks.
Rubin, a 26-year veteran of Goldman Sachs, was rewarded by Citibank for his service to the banks while Treasury Secretary with a $50 million compensation package in 2008 and $126,000,000 between 1999 and 2009.
When a person becomes a Treasury official it is made clear that the choice is between serving the banks and becoming rich or trying to serve the public and becoming poor. Few make the latter choice.
As MIchael Hudson has informed us, the goal of the financial sector has always been to convert all income, from corporate profits to government tax revenues, to the service of debt. From the bankers standpoint, the more debt the richer the bankers. Rubin, Summers, Paulson, Geithner, and now banker Treasury Secretary Jack Lew faithfully serve this goal.
The Federal Reserve describes its policy of Quantitative Easing — the creation of new money with which the Fed purchases Treasury debt and mortgage backed securities — as a low interest rate policy in order to stimulate employment and economic growth. Economists and the financial media have parroted this cover story.
In contrast, I have exposed QE as a scheme for pumping profits into the banks and boosting their balance sheets. The real purpose of QE is to drive up the prices of the debt-related derivatives on the banks’ books, thus keeping the banks with solvent balance sheets.
Writing in the Wall Street Journal (“Confessions of a Quantitative Easer,” November 11, 2013), Andrew Huszar confirms my explanation to be the correct one. Huszar is the Federal Reserve official who implemented the policy of QE. He resigned when he realized that the real purposes of QE was to drive up the prices of the banks’ holdings of debt instruments, to provide the banks with trillions of dollars at zero cost with which to lend and speculate, and to provide the banks with “fat commissions from brokering most of the Fed’s QE transactions.” (See: www.paulcraigroberts.org )
This vast con game remains unrecognized by Congress and the public. At the IMF Research Conference on November 8, 2013, former Treasury Secretary Larry Summers presented a plan to expand the con game.
Summers says that it is not enough merely to give the banks interest free money. More should be done for the banks. Instead of being paid interest on their bank deposits, people should be penalized for keeping their money in banks instead of spending it.
To sell this new rip-off scheme, Summers has conjured up an explanation based on the crude and discredited Keynesianism of the 1940s that explained the Great Depression as a problem caused by too much savings. Instead of spending their money, people hoarded it, thus causing aggregate demand and employment to fall.
Summers says that today the problem of too much saving has reappeared. The centerpiece of his argument is “the natural interest rate,” defined as the interest rate at which full employment is established by the equality of saving with investment. If people save more than investors invest, the saved money will not find its way back into the economy, and output and employment will fall.
Summers notes that despite a zero real rate of interest, there is still substantial unemployment. In other words, not even a zero rate of interest can reduce saving to the level of investment, thus frustrating a full employment recovery. Summers concludes that the natural rate of interest has become negative and is stuck below zero.
How to fix this? The way to fix it, Summers says, is to charge people for saving money. To avoid the charges, people would spend the money, thus reducing savings to the level of investment and restoring full employment.
Summers acknowledges that the problem with his solution is that people would take their money out of banks and hoard it in cash holdings. In other words, the cash form of money provides consumers with a freedom to save that holds down consumption and prevents full employment.
Summers has a fix for this: eliminate the freedom by imposing a cashless society where the only money is electronic. As electronic money cannot be hoarded except in bank deposits, penalties can be imposed that force unproductive savings into consumption.
Summers’ scheme, of course, is a harebrained one. With governments running huge deficits, who would purchase bonds at negative interest rates? How would pension and retirement funds operate? Would they also be subject to an annual percentage confiscation?
We know that the response of consumers to the long term decline in real median family income, to the loss of jobs from labor arbitrage across national borders (jobs offshoring), to rising homelessness, to cuts in the social safety net, to the transformation of their full time jobs to part time jobs (employers’ response to Obamacare), has been to reduce their savings rate. Indeed, few have any savings at all. The US personal saving rate is currently 2 percentage points, about 30%, below the long term average. Retired people, unable to earn any interest on their savings from the Fed’s zero interest rate policy, are being forced to draw down their savings in order to pay their bills.
Moreover, it is unclear whether the savings rate is an accurate measure or merely a residual of other calculations. With so many people having to draw down their savings, I wouldn’t be surprised if an accurate measure showed the personal savings rate to be negative.
But for Summers the plight of the consumer is not the problem. The problem is the profits of the banks. Summers has the solution, and the establishment, including Paul Krugman, is applauding it. Once the economy officially turns down again, watch out.
This column first appeared as a Trend Alert, Trends Research Institute
Source: Paul Craig Roberts
While walking through the streets of San Francisco the other day and totally admiring this beautiful city’s “painted lady” architectural glory, I suddenly and inexplicably started wondering what this amazing place might look like if it too had been bombed all to crap in the same manner that Damascus has been bombed all to crap by all those missiles and cluster-bombs and Al Qaeda operatives that American taxpayers are paying for — as they happily torture, rape and/or maim women and children in our name.
And this sudden unexpected vision of beautiful San Francisco as a bombed-out ruin has even further strengthened my resolve to do everything that I can to prevent America’s ruthless War Street from spending our money on bombing other countries — lest something like this happens to our beloved San Francisco too. Or to my own beloved Berkeley.
We need to stop all this expensive, bloody and worthless slaughter and seriously consider a far, far better alternative instead: “Do unto Syria what we would have Syria do unto us.”
And let’s also consider what corporate America’s current utter lack of a “Do unto Africa as we would have Africa do unto us” policy would do to us here if it also was reversed? Can you even imagine what it would be like in America if what happens in Africa today daily was happening here too? Really? Would we Americans love to be perpetually in debt to the world bank, have our lands and resources seized by neo-colonialists, our crops polluted with GMOs, millions of our women and children raped and killed, and our pristine forests turned into a dumping ground for nuclear and industrial waste? Hardly. http://www.youtube.com/watch?
And while we’re at it, let’s also “Do unto Israel as we would have Israel do unto us.” America’s relationship to Israel right now sucks eggs for the Israelis. And what exactly is this relationship? It might be easier to understand if we look at it from a different perspective and if our roles were reversed.
Imagine, for instance, that some huge gonzo super-power on the other side of the world was pumping billions and billions and billions of dollars into America’s economy annually — but with only one stipulation: That all this gigantic wad of free Moola can only be used for one purpose: To kill, torture, maim and and jail Native Americans. And steal their land. And establish an American Gestapo defense force and fund Settlers to take over what few Indian reservations we have left (after 19 million Native Americans have already been slaughtered here already), and to treat native Americans like animals and to napalm their children. And to do this all in the name of God. https://www.youtube.com/watch?
Would we, as Native Americans — or even as just plain American citizens — see the cruelty and injustice in this? Or would we just sell out to all those big bucks thrown our way like the Israelis have; and just relax and glorify in the joy of having a vampire-like power over others who are completely at our mercy?
These same choices are the ones that America’s War Street is forcing Israelis to make every day. And so far, most Israelis seem to have chosen blood-money over the Ten Commandments. What a waste.
And also let’s consider another new perspective: “Do unto nature and the environment what we would have nature and the environment do unto us.” Always remember that Nature bats last. Think Fukushima. Think a thousand more hurricanes like Sandy, Haiyan and Katrina. More fracking earthquakes. More 140-degree days. “Admiral Samuel J. Locklear III, the commander of the United States Pacific Command, [stated] that global climate change was the greatest threat the United States faced — more dangerous than terrorism, Chinese hackers and North Korean nuclear missiles.”
And America’s War Street and Wall Street and related skin-flint tax-dodging huge corporations are obviously not clear on the concept of “Do unto Americans as you would have Americans do unto you” either.
In the 1940s, every American sacrificed their comfort and rationed their goods and went without in order to pay for the “Good War”.
But ever since that stupid and useless invasion of Afghanistan in 2001, 99% of Americans are sacrificing and going without in order to pay for some stupid and useless “Endless War” that in no way benefits them — while America’s top one percent make no sacrifices at all; dining on caviar, buying cruise-ship-sized yachts with their bloody “war” profits and fiddling like Nero.
And yet most Americans these days do nothing to protect themselves from being cheated, robbed and exploited, but rather spend their last decaying days as citizens of a formerly economically-viable democracy happily watching pseudo-myths and fables on Fox News — as our beloved country slowly slips into third-world status. “Welcome to Jakarta.”
Are we finally getting the Big Picture here yet — that what goes around comes around? If Americans continue to let Wall Street and War Street run our domestic policies, our foreign policies and our environmental policies, then all we can ever expect to receive is blood and carnage in return.
By any reasonable measure, I think it is safe to say that the last quarter of 2013 has been an insane game of economic Russian Roulette. Even more unsettling is the fact that most of the American population still has little to no clue that the U.S. was on the verge of a catastrophic catalyst event at least three times in the past three months alone, and that we face an even greater acceleration next year.
The first near miss was the Federal Reserve’s announcement of a possible “taper” of QE stimulus in early fall, which sent shivers through stock markets and proved what we have been saying all along – that the entire recovery is a facade built on an ever thinning balloon of fiat money. Today, markets function entirely on the expectation that the Fed will continue stimulus forever. If the Fed does cut QE in any way, the frail psychology of the markets will shatter, and the country will come crashing down with it.
The second near miss was the possible unilateral invasion of Syria demanded by the Obama Administration. As we have discussed here at Alt-Market for years, any invasion of Syria or Iran will bring detrimental consequences to the U.S. economy and energy markets, not to mention draw heavy opposition from Russia and China. Though the naïve shrug it off as a minor foreign policy bungle, Syria could have easily become WWIII, and I believe the only reason the establishment has not yet followed through with a strike in the region is because the alternative media has been so effective in warning the masses. The elites need a certain percentage of support from the general public and the military for any war action to be effective, which they did not receive. After all, no one wants to fight and die in support of CIA funded Al Qaeda terrorist cells on the other side of the world. The establishment tried to hide who the rebels were, and failed.
The third near miss was, of course, the debt ceiling debate, which has been extended to next spring. America came within a razor’s edge of debt default, which many people rightly fear. What some do not yet grasp, though, is that debt default of the U.S. was NOT avoided last month, it is INEVITABLE. Debt default will ultimately result in the death of the dollar as the world reserve currency, and the petro-currency. This final gasp will lead to hyperstagflation within our financial system, and third world status for most of the citizenry. It is only a matter of time, and timing.
“Timing” is truly what we are all concerned about. Those of us in the field of alternative media and economics understand well that the U.S. is on a collision course with disaster; it is a mathematical certainty. We no longer think in terms of “if” it happens – we only question “when” it will happen. Our fiscal structure now hangs by the thinnest of threads, a thread which for all we know could be cut at a moments notice. However, economic and political storms appear to be brewing with the year 2014 as a target.
Globalists have been openly seeking the destabilization of U.S. sovereignty, and they have openly admitted that the destruction of the dollar and our economic foundations will aid them in their goal. It is important to never forget that international financiers WANT to absorb America into a new global economic structure, and that the U.S. must be debased before this can be accomplished. Here are a few reasons why I believe 2014 may be the year they make their final move…
Debt Debate On Steroids
Nothing concrete was decided during the highly publicized “battle” between Democrats and the GOP on what would be done to solve the U.S. debt addiction. Some people might assume that the fight will go on indefinitely, and that the “can” will be kicked down the road for years to come. This assumption is a dangerous one. If you thought the last debt debate was hair raising, the next is likely to give you a coronary. Think of 2013 as a practice run, a warm up to the main event in 2014. Why will next year be different? Because the motivations behind a debt ceiling freeze (and thus debt default) are now supported by the obvious failure of Obamacare.
Funding for Obamacare was the underlying issue that gave strength to the push for new debt ceiling extensions. The U.S. government has overreached financially in ever way imaginable. We have long running entitlement programs that have been technically bankrupt for years. But, Obamacare was so pervasive during the debt debate that we heard nothing of these existing liabilities. Ultimately, Obamacare is the primary reason why so many Americans on the “left” want unlimited spending and inflation, and why so many Americans on the “right” are actually seeking debt default.
We all know that at the top of the pyramid the debt debate itself is false left/right theater, but it is still theater with a purpose.
In my articles ‘The Socialization Of America Is Economically Impossible’ and ‘Obamacare: Is It A Divide And Conquer Distraction’, I discussed why universal healthcare could not be implemented in America, and I predicted in advance that Obamacare was actually a farce that was designed to fail. The program’s only purpose is to provide a vehicle by which divisions between the fake left and the fake right could be solidified in the minds of the common populace. A lot of cynicism was directed at the notion that the government might create a socialized healthcare initiative and then allow it to fail. Of course, we now know that is exactly what they had in mind.
During the last debt debate, Obamacare was just a policy waiting to be implemented; next debate, that policy will be rightly labeled a train wreck. Obamacare is falling apart at it’s very inception, and evidence makes clear that the White House KNEW in advance that this would occur. In the days before it’s launch, performance tests on the Obamacare website showed conclusively that the system could not handle more than 500 users.
Obama promised that preexisting healthcare plans would be retained by Americans and that the Affordable Care Act would not do damage to established insurance models. He made this promise knowing full well that he could not or would not keep it. This dishonesty has resulted in rebellion by Democrats who have sided with Republicans to pass a bill which obstructs the erasure of existing health coverage.
States once disturbingly loyal to the White House are now moving to limit the application of the Obamacare structure.
The White House had foreknowledge that the program was nowhere near ready, yet, they moved forward anyway. Why wouldn’t they stall? Why would Obama knowingly unleash his “opus” before it was finished? He had it in the bag, right? He won, right? All he had to do was build a functioning website and keep his promises at least long enough to sucker the majority of Americans into the system. Instead, he throws the fight and hits the canvas before he’s even punched? Why?
It all sounds rather insane if you aren’t aware of the bigger picture, and I’m sure the average Democrat out there is wide-eyed and bewildered. Some might blame it on “ego”, or “hubris”, but this makes little sense. Obamacare is an American socialist’s dream. With a simple working public interaction model, Obama would be worshiped by leftists for decades to come as the next Franklin Delano Roosevelt. Hubris should have ENSURED that the White House launch of Obamacare would be flawless.
Once you realize that this is not about Obama, and that Obama is nothing but a middle-man for the globalists, and that the actual implementation of Obamacare never mattered to the establishment, the fog begins to clear.
With Obamacare in shambles, the dynamic of the debt debate theater changes completely. Some Democrats may well show support for a hold on the debt ceiling, for, what reason do they have to champion more spending? Obama has already made fools of them all, and the Obamacare motivator is essentially out of the picture. The GOP will be energized and more unified than the last debate, giving more momentum to a debt ceiling lock. The argument will be made that a resulting debt default will not be harmful, and that the U.S. can carry the weight of existing liabilities until the budget is balanced.
This is certainly a lie, but it is a fashionable lie that Americans will want to hear.
Americans do not want to hear that our economy is too far gone and that any motion, to spend, or to cut, will have the same result – currency collapse and fiscal implosion. They do not want to hear that pain must be suffered before a realistic solution can be applied. They do not want to hear the the system will have to be brought down before it can be rebuilt. And, they definitely do not want to hear that the system will be deliberately brought down and replaced with something even worse.
Will the next debt debate in Spring 2014 end in debt default and the collapse that globalists desire so much? It’s hard to say, but many insiders appear to be preparing for just such a scenario…
The Fed’s Buzz Kill
No one, and I mean no one, believes the private Federal Reserve will ever commit to a taper of fiat stimulus. Hell, I barely believe it’s possible, and I’m open to just about any scenario. That said, I have to ask a question which few analysts seem to be asking – why does the Fed keep pre-injecting the concept of taper into the mainstream if they never intend to implement it? When has the Fed ever pre-injected a plan into the MSM which it did not eventually implement?
The banksters have the markets in the palm of their hand, or at least they seem to. Stocks now rise and fall according to whatever meaningless press release the central bank happens to put out on any given morning. What do they have to gain by consistently shaking the confidence of investors around the world by suggesting that the fiat party they created will abruptly end?
The impending approval by the Senate of Janet Yellen, a champion of the printing press, would suggest to many that QE-infinity is assured. We know that the black hole generated by the derivatives implosion cannot be filled (debts still exist in the quadrillions of dollars), and that the Fed will have to print endlessly in order to slow the deterioration of the the banking sector. We know that none of the currency flows created by the Fed are trickling down to main street, which is why credit remains mostly frozen, real unemployment counting U-6 measurements remains at around 25%, food stamp recipients have risen to around 50 million, and the only sales boosts to property markets are those caused by big banks buying bankrupt houses and then reissuing them as rentals.
We know that it makes sense for the central bank to continue QE, if only to continue pumping up banks and the stock market and hide the truly dismal state of the overall system. But let’s forget about what we think “makes sense” for just a moment…
What if the Fed no longer WANTS to hide the true state of the system anymore? What if QE is now giving back diminishing returns, and will soon be no longer effective at hiding economic weakness?Central bankers surely don’t want to take the blame for a collapse, but what if the perfect patsy is already lined up? A patsy so hated and despised that no one would think twice about their guilt? I am, of course, talking about the Federal Government itself.
Think about it; the failure of Obamacare promises a debt debate in the Spring of 2014 that will rock the very foundations of the global economy. Both sides, Democrat and Republican, are ready to blame the other fully for any disastrous outcome, though “Tea Party” conservatives have been painted by the mainstream media as the lead culprits behind a financial catastrophe that began before the Tea Party was born. The idea of “gridlock” leading to impasse and calamity is already built into the country’s consciousness. The general public’s opinion of all areas of government has recently hit all time lows. In fact, our opinion of government could scarcely go any lower than it already has. Everyone HATES what government is, or what they think it is. Most Americans would be happy to place the brunt of the blame for an economic disaster on the shoulders of Washington DC.
The genius of it is, they deserve a large part of the blame. They helped to make possible all of the horrors the citizenry will face in the coming years. The problem is, the public may become so blinded with rage over the failure of the political system, that they may completely forget about the role of international and central banks and turn on each other instead.
Why is the Fed now discussing, just before the possible confirmation of Janet Yellen, a stimulus dove, the need for taper measures by 2014?
Is it just coincidence that the taper discussion is taking place parallel to the debt ceiling battle, or are these two things related? What if the Fed plans to apply QE cuts during or after the renewed debt debate in order to make the market effects even more negative? What if the Fed is timing the taper to give energy to a debt default? What if the Fed wants to reduce support, so that later, when all hell breaks loose, we’ll come begging them for support?
Whether you believe a debt default will be deliberately induced or not, certain foreign investors have been preparing for such a U.S. breakdown for years, and once again, the apex investor, China, has made plans for dramatic economic policy changes to take place in 2014…
China Is Ready To File For Divorce
The economic marriage between China and the U.S. has been touted Ad nauseum as an invincible relationship chained in eternity by unassailable interdependency. I’ve just never bought this fanciful tale. For years I’ve written about the likelihood that China will decouple from the American dollar apparatus, and so far, most of my warnings have come to pass.
China has pushed forward with massive physical gold purchases despite all arguments by skeptics that gold is no longer necessary or prudent as a safe haven investment. Apparently, the Chinese know something they do not. China is on pace to become the largest holder of gold in the world as early as 2014.
China has now issued Yuan denominated bonds and other assets around the globe, and its central bank has expanded its total balance sheet to at least $24 Trillion, outmatching the reported increased balance sheets of all other central banks:
Now, some feel that this Chinese liquidity should be considered a massive bubble on the verge of exploding, and that it will be Chinese instability, not U.S. instability, that triggers renewed crisis. I would like to offer an alternative view…
I am not shocked at all by this incredible spike in Yuan circulation. In fact, I expected it. The fall back argument against China dumping the dollar as the world reserve has always been that there is no alternative currency that boasts as much liquidity as the dollar. Well, as we now know, China has been raining Yuan down on every continent. International banks like JP Morgan have been HELPING them do it.
China is not desperately attempting to prop up its own markets like we are in the U.S. China is DELIBERATELY generating massive liquidity because they seek to aid the IMF in its longtime plan to replace the greenback as the world reserve currency. These are not the activities of an investor that wants to stick with the U.S. or the dollar. These are not the activities of a nation that wishes to continue its limited role as a source of cheap industrial labor.
China, being the largest importer of petroleum surpassing the U.S., is now planning to price its crude oil futures in Yuan, instead of the dollar.
And, the Chinese central bank has announced that it now plans to stop all purchases of U.S. dollars for its reserves.
These decisions are part of a precision strategy, a formula which was finalized during a little discussed and very secretive economic policy meeting which took place in China this past month.
While much of the media was focused on China’s call for softer restrictions on its one-child policy, they ignored the thrust of the meeting, which was to establish Chinese consumption over exports, and internationalize the Yuan. All that is left is for China to “float” the Yuan’s value on the open market, which is an action the head of the PBOC, Zhou Xiaochuan, says he plans to expedite.
All of the reforms discussed at China’s Third Plenum meeting are supposed to begin taking shape in…that’s right…2014.
A Storm Of Septic Proportions
As I have always pointed out, economic collapse is not necessarily an event, it is a process. The most frightening elements of this process usually do not become visible until it is too late for common people to react in a productive way. All of the dangers covered in this article could very well set fires tomorrow, that is how close our nation is to the edge. However, the culmination of events so far seems to be setting the stage for something, an important something, in 2014. If the worst is possible, assume the worst is probable. The next leg down, or the next economic carpet bombing. Maybe slightly painful, maybe mortal. Sadly, as long as Americans continue to remain dependent on the existing corrupt system, global bankers can pull the plug at their leisure, and determine the depth of the wound with scientific precision.
Source: Brandon Smith | Alt-Market
Recently I wrote a piece entitled Boycott Back Friday. Generally it was well received. Being fans of capitalism and the voluntary exchange of goods and services we made the point that it was entirely reasonable to opt out of the buying frenzy from a pro-market perspective. To value time (time is money) with one’s family and more than standing in line to buy things is the very essence of what a free market is all about.
Yet a few readers took us to task for daring to say that the gluttonous consumption of shiny trinkets on Black Friday was a bad thing. We were besmirching capitalism. That the act of not going shopping with the other credit lemmings was practically un-American. One guy basically equated us to socialists. (Which is pretty damn laughable if you’ve read us for any period of time.)
To be clear people should be able to spend their money anyway they like, and I mean any way. (So long as they are not hurting others.) If people want to descend on WalMart at midnight (now even earlier than that) they have every right to. If they want a hooker on Christmas Eve, so be it. But I think there is much to be said for just turning one’s back on the entire mess. (Or at least much of it. I will be surfing Amazon at some point next month.)
Governments like the gratuitous consumption of Christmas because it fills the tills. Sales taxes during the holiday season are very important to them. Add the multitude of other revenue streams which flow from the private sector to the state in December, and it’s no wonder there is so much concern in government about how much people are spending during December each year. In addition to the sales taxes, think about the gas taxes, the food taxes (a sales tax yes,) phone taxes, and God knows what other taxes which get a big boost at the end of the year. The bureaucracy needs to make its nut. So sell, sell, sell, buy, buy, buy.
Of course we engage in the whirlwind of consumerism each year not because the government tells us to. Most of us do it because it has become deeply ingrained in our culture. As the cold and darkness of winter creeps over the northern hemisphere we busy ourselves with racing from here to there, buying this and that. I am actually convinced that at least a small part of the winter consumption binge is a salve spread over Seasonal Affective Disorder. (I think that it would actually make sense to move Christmas to the end of February. People could anticipate Christmas all winter long, celebrate, then boom – here comes Spring. I would support a Congressional effort to make this happen.)
To be sure much of the buying is just a form of celebration. A splurging during Western society’s greatest festival. It can be fun to go shopping. It’s fun to give people things that they enjoy. It’s fun to think of people we know and love in distant places opening our gift on Christmas morning. All of the buying during Christmas isn’t bad.
But much of the buying is. Millions of people go into debt, or further into debt, each year trying to live up to the expectations of their family and friends. The kids must get this. My friends expect that. Where’s the Visa?
And the banks, the ones we bailed out 5 years ago supply the credit for all this buying. Easy money flows. Debtors buy more from the company store.
Again, if buying makes one happy I understand. Heck, one day I hope to put a 1985 Ferrari 288 GTO under the tree. But consider making your purchases more deliberate this year. Engage in “conscious capitalism” as John Mackey the founder of Whole Foods might say. I’m going to do my best to, but I’ll bet I still buy too much. Most of us will.
Source: Nick Sorrentino | Against Crony Capitalism
Control oil and you control nations,” said US Secretary of State Henry Kissinger in the 1970s. “Control food and you control the people.”
Global food control has nearly been achieved, by reducing seed diversity with GMO (genetically modified) seeds that are distributed by only a few transnational corporations. But this agenda has been implemented at grave cost to our health; and if the Trans-Pacific Partnership (TPP) passes, control over not just our food but our health, our environment and our financial system will be in the hands of transnational corporations.
Profits Before Populations
Genetic engineering has made proprietary control possible over the seeds on which the world’s food supply depends. According to an Acres USA interview of plant pathologist Don Huber, Professor Emeritus at Purdue University, two modified traits account for practically all of the genetically modified crops grown in the world today. One involves insect resistance. The other, more disturbing modification involves insensitivity to glyphosate-based herbicides (plant-killing chemicals). Often known as Roundup after the best-selling Monsanto product of that name, glyphosate poisons everything in its path except plants genetically modified to resist it.
Glyphosate-based herbicides are now the most commonly used herbicides in the world. Glyphosate is an essential partner to the GMOs that are the principal business of the burgeoning biotech industry. Glyphosate is a “broad-spectrum” herbicide that destroys indiscriminately, not by killing unwanted plants directly but by tying up access to critical nutrients.
Because of the insidious way in which it works, it has been sold as a relatively benign replacement for the devastating earlier dioxin-based herbicides. But a barrage of experimental data has now shown glyphosate and the GMO foods incorporating it to pose serious dangers to health. Compounding the risk is the toxicity of “inert” ingredients used to make glyphosate more potent. Researchers have found, for example, that the surfactant POEA can kill human cells, particularly embryonic, placental and umbilical cord cells. But these risks have been conveniently ignored.
The widespread use of GMO foods and glyphosate herbicides helps explain the anomaly that the US spends over twice as much per capita on healthcare as the average developed country, yet it is rated far down the scale of the world’s healthiest populations. The World Health Organization has ranked the US LAST out of 17 developed nations for overall health.
Sixty to seventy percent of the foods in US supermarkets are now genetically modified. By contrast, in at least 26 other countries—including Switzerland, Australia, Austria, China, India, France, Germany, Hungary, Luxembourg, Greece, Bulgaria, Poland, Italy, Mexico and Russia—GMOs are totally or partially banned; and significant restrictions on GMOs exist in about sixty other countries.
A ban on GMO and glyphosate use might go far toward improving the health of Americans. But the Trans-Pacific Partnership, a global trade agreement for which the Obama Administration has sought Fast Track status, would block that sort of cause-focused approach to the healthcare crisis.
Roundup’s Insidious Effects
Roundup-resistant crops escape being killed by glyphosate, but they do not avoid absorbing it into their tissues. Herbicide-tolerant crops have substantially higher levels of herbicide residues than other crops. In fact, many countries have had to increase their legally allowable levels—by up to 50 times—in order to accommodate the introduction of GM crops. In the European Union, residues in food are set to rise 100-150 times if a new proposal by Monsanto is approved. Meanwhile, herbicide-tolerant “super-weeds” have adapted to the chemical, requiring even more toxic doses and new toxic chemicals to kill the plant.
Human enzymes are affected by glyphosate just as plant enzymes are: the chemical blocks the uptake of manganese and other essential minerals. Without those minerals, we cannot properly metabolize our food. That helps explain the rampant epidemic of obesity in the United States. People eat and eat in an attempt to acquire the nutrients that are simply not available in their food.
Glyphosate’s inhibition of cytochrome P450 (CYP) enzymes is an overlooked component of its toxicity to mammals. CYP enzymes play crucial roles in biology . . . . Negative impact on the body is insidious and manifests slowly over time as inflammation damages cellular systems throughout the body. Consequences are most of the diseases and conditions associated with a Western diet, which include gastrointestinal disorders, obesity, diabetes, heart disease, depression, autism, infertility, cancer and Alzheimer’s disease.
More than 40 diseases have been linked to glyphosate use, and more keep appearing. In September 2013, the National University of Rio Cuarto, Argentina, published research finding that glyphosate enhances the growth of fungi that produce aflatoxin B1, one of the most carcinogenic of substances. A doctor from Chaco, Argentina, told Associated Press, “We’ve gone from a pretty healthy population to one with a high rate of cancer, birth defects and illnesses seldom seen before.” Fungi growths have increased significantly in US corn crops.
Glyphosate has also done serious damage to the environment. According to an October 2012 report by the Institute of Science in Society:
Agribusiness claims that glyphosate and glyphosate-tolerant crops will improve crop yields, increase farmers’ profits and benefit the environment by reducing pesticide use. Exactly the opposite is the case. . . . [T]he evidence indicates that glyphosate herbicides and glyphosate-tolerant crops have had wide-ranging detrimental effects, including glyphosate resistant super weeds, virulent plant (and new livestock) pathogens, reduced crop health and yield, harm to off-target species from insects to amphibians and livestock, as well as reduced soil fertility.
Politics Trumps Science
In light of these adverse findings, why have Washington and the European Commission continued to endorse glyphosate as safe? Critics point to lax regulations, heavy influence from corporate lobbyists, and a political agenda that has more to do with power and control than protecting the health of the people.
In the ground-breaking 2007 book Seeds of Destruction: The Hidden Agenda of Genetic Manipulation, William Engdahl states that global food control and depopulation became US strategic policy under Rockefeller protégé Henry Kissinger. Along with oil geopolitics, they were to be the new “solution” to the threats to US global power and continued US access to cheap raw materials from the developing world. In line with that agenda, the government has shown extreme partisanship in favor of the biotech agribusiness industry, opting for a system in which the industry “voluntarily” polices itself. Bio-engineered foods are treated as “natural food additives,” not needing any special testing.
Jeffrey M. Smith, Executive Director of the Institute for Responsible Technology, confirms that US Food and Drug Administration policy allows biotech companies to determine if their own foods are safe. Submission of data is completely voluntary. He concludes:
In the critical arena of food safety research, the biotech industry is without accountability, standards, or peer-review. They’ve got bad science down to a science.
Whether or not depopulation is an intentional part of the agenda,widespread use of GMO and glyphosate is having that result. The endocrine-disrupting properties of glyphosate have been linked to infertility, miscarriage, birth defects and arrested sexual development. In Russian experiments, animals fed GM soy were sterile by the third generation. Vast amounts of farmland soil are also being systematically ruined by the killing of beneficial microorganisms that allow plant roots to uptake soil nutrients.
In Gary Null’s eye-opening documentary Seeds of Death: Unveiling the Lies of GMOs, Dr. Bruce Lipton warns, “We are leading the world into the sixth mass extinction of life on this planet. . . . Human behavior is undermining the web of life.”
The TPP and International Corporate Control
As the devastating conclusions of these and other researchers awaken people globally to the dangers of Roundup and GMO foods, transnational corporations are working feverishly with the Obama administration to fast-track the Trans-Pacific Partnership, a trade agreement that would strip governments of the power to regulate transnational corporate activities. Negotiations have been kept secret from Congress but not from corporate advisors, 600 of whom have been consulted and know the details. According to Barbara Chicherio in Nation of Change:
The Trans Pacific Partnership (TPP) has the potential to become the biggest regional Free Trade Agreement in history. . . .
The chief agricultural negotiator for the US is the former Monsanto lobbyist, Islam Siddique. If ratified the TPP would impose punishing regulations that give multinational corporations unprecedented right to demand taxpayer compensation for policies that corporations deem a barrier to their profits.
. . . They are carefully crafting the TPP to insure that citizens of the involved countries have no control over food safety, what they will be eating, where it is grown, the conditions under which food is grown and the use of herbicides and pesticides.
Food safety is only one of many rights and protections liable to fall to this super-weapon of international corporate control. In an April 2013 interview on The Real News Network, Kevin Zeese called the TPP “NAFTA on steroids” and “a global corporate coup.” He warned:
No matter what issue you care about—whether its wages, jobs, protecting the environment . . . this issue is going to adversely affect it . . . .
If a country takes a step to try to regulate the financial industry or set up a public bank to represent the public interest, it can be sued . . . .
Return to Nature: Not Too Late
There is a safer, saner, more earth-friendly way to feed nations. While Monsanto and US regulators are forcing GM crops on American families, Russian families are showing what can be done with permaculture methods on simple garden plots. In 2011, 40% of Russia’s food was grown on dachas (cottage gardens or allotments). Dacha gardens produced over 80% of the country’s fruit and berries, over 66% of the vegetables, almost 80% of the potatoes and nearly 50% of the nation’s milk, much of it consumed raw. According to Vladimir Megre, author of the best-selling Ringing Cedars Series:
Essentially, what Russian gardeners do is demonstrate that gardeners can feed the world – and you do not need any GMOs, industrial farms, or any other technological gimmicks to guarantee everybody’s got enough food to eat. Bear in mind that Russia only has 110 days of growing season per year – so in the US, for example, gardeners’ output could be substantially greater. Today, however, the area taken up by lawns in the US is two times greater than that of Russia’s gardens – and it produces nothing but a multi-billion-dollar lawn care industry.
In the US, only about 0.6 percent of the total agricultural area is devoted to organic farming. This area needs to be vastly expanded if we are to avoid “the sixth mass extinction.” But first, we need to urge our representatives to stop Fast Track, vote no on the TPP, and pursue a global phase-out of glyphosate-based herbicides and GMO foods. Our health, our finances and our environment are at stake.
Ellen Brown is an attorney, president of the Public Banking Institute, and author of twelve books, including the best-selling Web of Debt. In The Public Bank Solution, her latest book, she explores successful public banking models historically and globally. Her blog articles are at EllenBrown.com.
Source: Ellen Brown | CounterPunch
With all that is being written about the national economic collapse, people seem to be waiting for some huge event.
However, for many North Americans, the collapse is here. This isn’t relegated to only lower income neighborhoods. As an article from a Cincinnati new station stated, “Hunger doesn’t know a zip code.”
For many people who were formerly financially comfortable, the economic collapse has already happened in the form of a job loss, hours that have been cut back due to Obamacare requirements for employers, an exorbitant medical bill or other crushing debt, or simply an inflation rate that has outstripped your pay increases. Despite all of the warnings, many people are still going to be absolutely blindsided.
- Which utility can I live without?
- Should I walk away from my mortgage?
- Should I eat something so I can work harder or should I skip meals so my kids have food?
- Should I use the grocery money to take my child to the doctor or should I wait and hope he/she improves without medical intervention?
- Do I risk the IRS-enforced penalties by forgoing enrollment in Obamacare or should I skip that whole grocery shopping thing so I can pay the monthly premiums and enormous deductibles in order to stay in the government’s good graces?
These are the kind of decisions that people across the nation are grappling with every day.
I’m talking about good people, hardworking men and women who have always been employed and paid their bills. A personal financial crisis does not just strike those stereotypical “welfare queens” with the long manicured nails, Gucci knock-off purse, and a grocery cart full of EBT-funded lobster.
I’m talking about the person next door, who seems to have it all together. I’m talking about that quiet family that sits two rows in front of you at church. I’m talking about that two-income family with two children and a car in the driveway that takes them to work and school 5 days a week. I’m talking about people just like you and me.
What is a personal economic collapse?
A personal economic collapse is a little different than the major crises you see all over Europe right now, where huge segments of the population can’t feed their children or stay employed. It is a crisis that just hits your family due to a given set of circumstances. (In actuality North Americans are on the brink of the kind of collapse that is occurring in Europe, but because of easy access to credit and a buy-now, pay-later society, many of us still have the appearance of prosperity.)
Here are some signs that you may be in the midst of a personal economic collapse:
- You can only afford to pay the minimum payment on most of your bills.
- The same dollar amount you used to spend on groceries doesn’t buy enough food to feed your family for the week.
- You can’t afford to go to the doctor when you’re sick.
- You are taking dangerous steps to “stretch” needed medications because you can’t afford the prescriptions.
- Your utility bills are past due and your power is in danger of being cut off.
- You skip meals in order to save money or to have enough food for your kids.
- You’ve lost your job or had your hours cut.
- You have lost property due to foreclosure or repossession (such as your home or your vehicle).
Surviving the crisis
Times are tough but you can survive this.
1.) First you have to see exactly where you are.
It’s time for a brutally honest assessment of your finances. If you use your debit card or credit card for most expenditures, you’ll easily be able to see what you’re spending and bringing in.
Print off your bank account statements for the past 2 months. On a piece of paper, track where your money is going. List the following
- Car payments
- Vehicle operating expenses (fuel, repairs)
- Credit card and other debt payments
- Telephone/Cell phone
- Extracurricular activities for the kids
- Extracurricular activities for the adults
- Dining out
- School expenses
- Recreational spending
- Miscellaneous (anything that doesn’t fall into the above categories gets its own category or goes here)
Don’t say to yourself, “Well, I usually don’t spend $400 on clothing so that isn’t realistic.” If you spent it, then it’s realistic. You are averaging together two months, which should account for those less common expenses. Brutal honesty isn’t fun, but it’s vital for this exercise.
So . . . what do you see when you look at your piece of paper with your average monthly expenditures for the past two months? Are there any surprises? Did you actually realize how much you’ve been spending? Most of us will immediately see places that we can trim the budget. Those $1-$5 purchases can really add up. Reining them in may just allow you to take care of an important need that you thought you could not meet.
It can’t continue like this. The economy will not withstand it. Step one is to see where you can cut things out right now from the above expenditures. Can you reduce your grocery bill? Slash meals out? Budget more carefully for gift-giving and school clothes?
2.) Rethink necessities.
If your finances are out of control, the best possible reality check is a stark look at what necessities really are. It is not necessary to life to have an iPhone, a vehicle in both stalls of your two-car garage, or for your children to all have separate bedrooms. People in Southern and Eastern Europe right now will tell you, as they scramble for food, basic over-the-counter medications like aspirin, and shelter, that necessities are those things essential to life:
- Food (and the ability to cook it)
- Medicine and medical supplies
- Basic hygiene supplies
- Shelter (including sanitation, lights, heat)
- Simple tools
- Defense items
Absolutely everything above those basic necessities is a luxury.
So, by this definition, what luxuries do you have?
3.) Reduce your monthly output
Reduce your monthly payments by cutting frivolous expenses. Look at every single monthly payment that comes out of your bank account and slash relentlessly. Consider cutting the following:
- Cell phones
- Home phones
- Gym memberships
- Restaurant meals
- Unnecessary driving
- Entertainment such as trips to the movies, the skating rink, or the mall
4.) Waste not, want not.
We live in a disposable society. Food comes in throw-away containers. People replace things instead of repairing them. If you throw out more than a couple of bags of garbage each week, that’s a very good sign that you may be wasting resources.
Before throwing anything away, pause and think about how it might be able to be reused.
Food: Many times small amounts of leftovers can be recycled into a brand new meal. Meat bones can be used to make broth or stock. Small amounts of veggies or grains can be frozen and added to a future soup or casserole. Leftovers can be frozen in meal-sized portions to take to work for a brown-bag lunch. (Learn more about repurposing leftovers HERE.)
Clothing: Clothing that is torn or damaged can often be repaired with only rudimentary sewing skills. If it has been outgrown or cannot be repaired, often the fabric or yarn can be reused for other purposes, from cleaning rags to fashionable accessories like scarves and headbands, or home items like throw pillows, potholders or rag rugs. When all else fails, the fabric can be used for cleaning rags or patches to repair other items. Keep jars full of buttons, elastic, and other notions that can easily be removed before you throw a clothing item away or relegate it to the rag bag.
Electronics: Obviously, initially you should attempt to repair (or have repaired) electronic items that are not working. If this is not feasible, are there components of the item that can be reused, either now or in the future? What about hardware such as screws or fasteners?
Containers: Most food comes in a container of some sort. Before throwing the container away, consider whether or not it might be useful. Glass jars, plastic tubs, and plastic bags can often be reused to store food in your refrigerator or to contain food in brown bag lunches. Clean aluminum cans can hold all manner of items, from hardware and tools in a workshop to sewing and craft supplies. Use your imagination.
5.) Take control of your food budget.
The price of food is skyrocketing. Who hasn’t been to the grocery store recently and been shocked at the high price of that cart full of groceries or at the mysterious shrinking food packages that are the same price as yesterday’s larger ones?
Stockpile: Create a stockpile of nutritious, healthy staples at today’s prices to enjoy when the cost goes even higher tomorrow. (Learn how to create a frugal food stockpile HERE.)
Preserve: Learn to preserve food yourself when you come across a windfall. Pressure canning,waterbath canning, freezing, and dehydrating can allow you to take advantage of great sales or end-of-season scores.
Eat less: This suggestion isn’t for everyone, but many of us could stand to shed a few pounds. Perhaps now would be a good time to cut back a little and shrink both your waistline and your weekly food bill. Lots of people eat for the sheer entertainment of it or out of habit. Next time you’re watching TV, grab some mending or a crossword puzzle instead of a bag of potato chips. Dish out slightly smaller servings at dinnertime to leave enough to stretch the leftovers for a brown bag meal the next day.
Drink water: Skip the beverages and drink water instead. At less than $1 per gallon for purchased water you simply can’t beat the price. It’s better for you, also, than sugary drinks. If you are lucky enough to have well water or access to spring water, your drinks don’t have to cost you a penny.
Focus on nutrition instead of convenience: Buy the best quality of food you can, and skip the processed, nutritionless convenience foods.
Grow your own. In the summer, grow the biggest garden you can. In the winter, or if you are an apartment dweller, put some sprouts and greens in a sunny windowsill to add some fresh produce for pennies.
6.) Reduce your dependence on utilities.
Energy rates are skyrocketing. As the prices begin to rise, more and more people will be unable to pay their bills and eventually their power will be shut off. Check your bill each month and as prices increase, use less power. Try some of these ideas to reduce your reliance and drop your bills.
- Hand wash your clothing
- Hang clothes to dry
- Cook on a woodstove or outdoor grill
- Can foods to preserve them instead of relying on a large chest freezer
- Turn the heat down a few degrees and use non-grid methods to keep warm
- Use rain barrels to collect water
- Direct the gray water from your washing machines to reservoirs
- Turn off the lights and open the blinds
- Use solar lighting whenever possible
How do you intend to weather the storm?
There are bleak days ahead. Have you planned for this? What strategies do you intend to use to weather the financial crisis that is coming for all of us? What suggestions do you have for families who are undergoing their own economic collapses? Please post questions and ideas in the comments section below.
Source: The Organic Prepper
I remember as a young child that the key to winning a lot of the neighborhood games in football and basketball was all about who got picked first. If you were lucky enough to get Michael on your team, then you knew you were going to win. If you were in a foreign park playing against kids you did not know, Michael was the great equalizer. I also knew that getting the right kids on my side helped in spelling bees and walking home from the movies so I didn’t get beat up. Learning how to organize my team with the right people, served me well when I became a men’s college head basketball coach in terms of winning the recruiting wars. I always felt the April recruiting wars was the deciding factor in many games in the following December.
America is in the choosing sides phase of the coming civil war. To use a college recruiting phrase, it is accurate to state that the letters of intent to join one side or another side, have mostly been signed and the commitments offered. However, there is one big uncommitted piece, but very soon the sides will be drawn.
The Chess Pieces of Civil War
What is going on today in America is all about choosing sides. There are clear lines being formed in the United States. The recruiting pool consists of the Department of Homeland Security, the American military, local law enforcement, the Russian troops pouring into the United States, the trickle of Chinese troops coming into the country through Hawaii and, of course, the poor, the middle class and elite. This is the recruiting pool which will form the chess pieces of the coming American Civil War.
The Contextual Background for Civil War
Even if all parties in this country wanted the country to continue, even in its present mortally wounded state, it would be foolish to believe that it could continue for much longer.
There are three paramount numbers that every American should be paying attention to and they are (1) national deficit ($17 trillion dollars), (2) the unfunded liabilities debt ($238 trillion dollars), and (3) the derivatives/futures debt (one quadrillion dollars which is 16 times the entire wealth of the planet. The net result of these staggering numbers can only end one way, and that is with a financial collapse, followed by a bank holiday, rioting in the streets and the full roll out of martial law. These financial numbers guarantee that the party cannot continue much longer.
Since America, in her present form, cannot continue much longer without experiencing a cataclysmic shift, we would be wise to realize what resources are going to be the impetus for civil war. When you play the board game, Monopoly, the properties on Boardwalk are among the most coveted. It is no different in real life. The biggest prize of the coming conflict is real estate. Homes, office buildings and shopping malls are the most coveted prize. The MERS mortgage fraud continues unabated as millions of homes have been confiscated through mortgage fraud. When the dollar is worthless and is awaiting its replacement (e.g. the Amero or the Worldo), real estate will be more valuable than gold.
Other big game that is being hunted by both sides in the coming civil war will be bank accounts, which must be looted before the dormant computer digits we call money, can be converted into hard assets. That is why my advice is, and has been, convert your cash into tangible assets which can enhance your survivability in the upcoming crash.
Also, your pensions, your 401K’s and your various entitlement programs are also at risk as evidenced by Secretary of Treasury Jack Lew’s “borrowing” from various Federal retirement accounts in order to increase the debt ceiling fight that will resurface in Congress, again, early next year.
Again, my advice is to convert your assets in tangible items which will aid in getting you through some very dark days coming up in the near future. Before the cognitive dissonance crowd rears their ugly heads and accuses me of fear mongering, ask yourself what the elite did prior to the crash of the economy in 1929. For example, Joseph Kennedy took his money out of the stock market the day BEFORE it crashed. Rockefeller, Westinghouse, et al., all took their money out just prior to the crash, leaving the ignorant masses unaware of what was coming. Don’t make the same mistake.
Barring a false flag event, US martial law will have a trigger event, which will lead to martial law, that will be a financial collapse and it will naturally occur as we are already on a collision course with destiny. I am not ruling out other events, but the economic crash scenario is easily the most likely event.
Building Fences Around the Ignorant
Please allow me to ask you an ignorant question. If you knew that a virus was coming to your neighborhood which would infect much of the local canine population, wouldn’t it be prudent to build a fence around all of the dogs in the neighborhood in order to isolate any potentially infected dogs? Well, this is how the elite view you.
Many of us, devoid of financial resources, will soon become like a pack of rabid dogs and we must be contained. As I have written about recently, it is becoming very difficult to get your money out of the country. Banks, such as JP Morgan Chase and HSBC have already imposed withdrawal limits. If you withdraw more than $10,000 cash, you run a good chance of being investigated by the IRS. One layer of fencing has already been placed around you and your assets.
The NDAA constitutes another big fence being built around the people in which all due process will soon be gone. The NDAA will allow the administration the “legal” right to secretly remove any burgeoning leadership of citizen opposition forces. The second provision which will allow this country to quickly transition to martial law is Executive Order (EO) 13603 which allows the President to take control over any resource, property and even human labor within the United States. This EO gives the President unlimited authority including the ability to initiate a civilian draft as well as a military draft. In short, this spells the potential enslavement of the American people. For those of you who still have your blinders on, research the NDAA and EO 13603 and then when you realize that I am correct in my interpretation, ask yourself one question; If the powers that be were not going to seize every important asset, then why would the government give itself the power to do just that? And while you are at it, remember the Clean Water Act gives the EPA to control all private property as well as the precious resources of all water. And then of course, the FDA and the conflicts with local farmers is escalating. And if this is not enough to convince the sheep of this country that the storm clouds are overhead, then take a look at HR 347 which outlaws protesting and takes away the First Amendment. This unconstitutional legislation makes it illegal to criticize the President and the government, as a whole, in the presence of Federal officials. I have news for you, there are Federal officials in every town, city and county in America. If one violates HR 347, they will be immediately arrested and charged with a felony.
I just saw the Hunger Games sequel, Catching Fire, and this is eerily similar to what I saw in a lot of movies in that the people are being provoked to revolution. In fact, in the TV show, Revolution, the most evil entity in the series is the re-emergence of the United States government and the heroes of the show are rebelling against the abuse. It seems like everywhere we turn in the media, the people are being encouraged to rise up now and challenge authority. I am sure the establishment would rather confront a small group of dissidents and squelch the rebellion now, before the numbers can become significant and overwhelming to the establishment and this theme is being carried out in the media on a large scale.
Along these same lines, Obama has done nothing but agitate the middle class. I like to ask Obama supporters, can you name one thing Obama has done, on behalf of the establishment elite, to improve the plight of the American middle class? I can’t think of even one thing.
The fences have been built around the soon-to-be rabid dog population, so when the infected dogs go crazy, the pieces will have been put in place to deal with the uprisings that will surely follow the loss of everything. Containment is nearly complete. The final action will consist of gun confiscation and one side of the coming conflict is attempting to position themselves to do that in the near future and that would be the DHS, the Russians and the Chinese. I cannot think of another legitimate reason which would describe why these foreign troops are here.
Cognitive dissonance only relieves some of psychological distress for so long.
I have told you what is at risk before the inevitable economic crash. Now it is time to take stock of the sides of this coming civil war and a very clear picture is emerging.
The poor have no resources other than their food stamps which are already under attack. The middle class and their resources are the target for the coming conflict. And most of the middle class has no idea that they have been targeted. Soon the divide and conquer strategies will lose their effectiveness and the poor and the middle class will be on the same team because they will both have lost everything.
As most of you know, I have been screaming from the roof tops that the “Russians are coming, the Russians are coming”, in reference to a bilateral agreement signed between the Russian military and FEMA. Well, the Russians are not coming, they are here and so are the Chinese. As most of you also know the Russians are Chinese have threatened to nuke the United States over Iran and Syria in the past several months. Yet, this administration thinks it is a good idea to include the Russians and Chinese in participating in highly secure operations with profound national security implications in such drills as Grid EX II and the upcoming RIMPAC war games which we used to use to fight against the imaginary Chinese and Russian forces. This is insanity, however, in athletic parlance, one side conducted a trade and is now receiving the services of their once arch-rival.
The sides of the coming civil war looks like this. On one side, we find the evil empire consisting of the elite, their government puppets, the DHS the Chinese, the Russians and perhaps the military. The other side, for the moment consists of the middle class and now the poor as they move towards having their entitlements incrementally taken away. Unless the military and the police can be swayed to the side of the people, the people are going to lose badly.
There is one big prize and its allegiance has not yet been determined and that is the American military and it is a game changer.
Carving Up the Military Like a Thanksgiving Turkey
Obama is purging the military like no president has ever done. Bush fired two Generals. Obama has fired hundreds of command level officers. Why? Because the military leadership is the key to the coming civil war. Who will the military support? Will the military support an out of control administration who would use foreign military assets against the people? Or, will they support the people that they are sworn to defend?
Obama has the Russians and the Chinese military coming into the country because our military cannot be trusted to do what needs to be done when the economic crash occurs. They are needed to confiscate the guns. Obama knows that the military is conditioned to protect the people. He is hoping that he can change the entire structure of the military and thus, change its mission through changing its leadership.
I personally do not think Obama can change the rank and file of the military. I think he can only have a minimal effect on the leadership of the military. If Obama’s purge of the military is anything but for the purpose of commandeering its services for the upcoming civil war, I would really like to hear another explanation, because, for the life of me, I cannot see another purpose to Obama’s house cleaning of the military. .
Obama needs to be impeached and convicted for treason.
Commanding Military Officers Terminated By Obama
-General John R. Allen-U.S. Marines Commander International Security Assistance Force [ISAF] (Nov 2012)
-Major General Ralph Baker (2 Star)-U.S. Army Commander of the Combined Joint Task Force Horn in Africa (April 2013)
-Major General Michael Carey (2 Star)-U.S. Air Force Commander of the 20th US Air Force in charge of 9,600 people and 450 Intercontinental Ballistic Missiles (Oct 2013)
-Colonel James Christmas-U.S. Marines Commander 22nd Marine Expeditionary Unit & Commander Special-Purpose Marine Air-Ground Task Force Crisis Response Unit (July 2013)
-Major General Peter Fuller-U.S. Army Commander in Afghanistan (May 2011)
-Major General Charles M.M. Gurganus-U.S. Marine Corps Regional Commander of SW and I Marine Expeditionary Force in Afghanistan (Oct 2013)
-General Carter F. Ham-U.S. Army African Command (Oct 2013)
-Lieutenant General David H. Huntoon (3 Star), Jr.-U.S. Army 58th Superintendent of the US Military Academy at West Point, NY (2013)
-Command Sergeant Major Don B Jordan-U.S. Army 143rd Expeditionary Sustainment Command (suspended Oct 2013)
-General James Mattis-U.S. Marines Chief of CentCom (May 2013)
-Colonel Daren Margolin-U.S. Marine in charge of Quantico’s Security Battalion (Oct 2013)
-General Stanley McChrystal-U.S. Army Commander Afghanistan (June 2010)
-General David D. McKiernan-U.S. Army Commander Afghanistan (2009)
-General David Petraeus-Director of CIA from September 2011 to November 2012 & U.S. Army Commander International Security Assistance Force [ISAF] and Commander U.S. Forces Afghanistan [USFOR-A] (Nov 2012)
-Brigadier General Bryan Roberts-U.S. Army Commander 2nd Brigade (May 2013)
-Major General Gregg A. Sturdevant-U.S. Marine Corps Director of Strategic Planning and Policy for the U.S. Pacific Command & Commander of Aviation Wing at Camp Bastion, Afghanistan (Sept 2013)
-Colonel Eric Tilley-U.S. Army Commander of Garrison Japan (Nov 2013)
-Brigadier General Bryan Wampler-U.S. Army Commanding General of 143rd Expeditionary Sustainment Command of the 1st Theater Sustainment Command [TSC] (suspended Oct 2013)
Nearly 160 Majors through the rank of Colonel have been let go by Obama.
Commanding Naval Officers Terminated by Obama
-Rear Admiral Charles Gaouette-U.S. Navy Commander John C. Stennis Carrier Strike Group Three (Oct 2012)-Tried to rescue Ambassador Chris Stevens but was arrested during the attempt.
-Vice Admiral Tim Giardina(3 Star, demoted to 2 Star)-U.S. Navy Deputy Commander of the US Strategic Command, Commander of the Submarine Group Trident, Submarine Group 9 and Submarine Group 10 (Oct 2013)
-Lieutenant Commander Kurt Boenisch-Executive Officer amphibious transport dock Ponce (Apr 2011)
-Rear Admiral Ron Horton-U.S. Navy Commander Logistics Group, Western Pacific (Mar 2011)
-Lieutenant Commander Martin Holguin-U.S. Navy Commander mine countermeasures Fearless (Oct 2011)
-Captain David Geisler-U.S. Navy Commander Task Force 53 in Bahrain (Oct 2011)
-Commander Laredo Bell-U.S. Navy Commander Naval Support Activity Saratoga Springs, NY (Aug 2011)
-Commander Nathan Borchers-U.S. Navy Commander destroyer Stout (Mar 2011)
-Commander Robert Brown-U.S. Navy Commander Beachmaster Unit 2 Fort Story, VA (Aug 2011)
-Commander Andrew Crowe-Executive Officer Navy Region Center Singapore (Apr 2011)
-Captain Robert Gamberg-Executive Officer carrier Dwight D. Eisenhower (Jun 2011)
-Captain Rex Guinn-U.S. Navy Commander Navy Legal Service office Japan (Feb 2011)
-Commander Kevin Harms- U.S. Navy Commander Strike Fighter Squadron 137 aboard the aircraft carrier Abraham Lincoln (Mar 2011)
-Commander Etta Jones-U.S. Navy Commander amphibious transport dock Ponce (Apr 2011)
-Captain Owen Honors-U.S. Navy Commander aircraft carrier USS Enterprise (Jan 2011)
-Captain Donald Hornbeck-U.S. Navy Commander Destroyer Squadron 1 San Diego (Apr 2011)
-Commander Ralph Jones-Executive Officer amphibious transport dock Green Bay (Jul 2011)
-Commander Jonathan Jackson-U.S. Navy Commander Electronic Attack Squadron 134, deployed aboard carrier Carl Vinson (Dec 2011)
-Captain Eric Merrill-U.S. Navy Commander submarine Emory S. Land (Jul 2011)
-Captain William Mosk-U.S. Navy Commander Naval Station Rota, U.S. Navy Commander Naval Activities Spain (Apr 2011)
-Commander Timothy Murphy-U.S. Navy Commander Electronic Attack Squadron 129 at Naval Air Station Whidbey Island, WA (Apr 2011)
-Commander Joseph Nosse-U.S. Navy Commander ballistic-missile submarine Kentucky (Oct 2011)
-Commander Mark Olson-U.S. Navy Commander destroyer The Sullivans FL (Sep 2011)
-Commander John Pethel-Executive Officer amphibious transport dock New York (Dec 2011)
-Commander Karl Pugh-U.S. Navy Commander Electronic Attack Squadron 141 Whidbey Island, WA (Jul 2011)
-Commander Jason Strength-U.S. Navy Commander of Navy Recruiting District Nashville, TN (Jul 2011)
-Captain Greg Thomas-U.S. Navy Commander Norfolk Naval Shipyard (May 2011)
-Commander Mike Varney-U.S. Navy Commander attack submarine Connecticut (Jun 2011)
-Commander Jay Wylie-U.S. Navy Commander destroyer Momsen (Apr 2011)
Forty one more were fired in 2012. One hundred and fifty seven were fired in 2013.
Source: The Common Sense Show
Many of the freedoms we enjoy here in the U.S. are quickly eroding as the nation transforms from the land of the free into the land of the enslaved, but what I’m about to share with you takes the assault on our freedoms to a whole new level. You may not be aware of this, but many Western states, including Utah, Washington and Colorado, have long outlawed individuals from collecting rainwater on their own properties because, according to officials, that rain belongs to someone else.
Check out this news report out of Salt Lake City, Utah, about the issue. It’s illegal in Utah to divert rainwater without a valid water right, and Mark Miller of Mark Miller Toyota, found this out the hard way.
After constructing a large rainwater collection system at his new dealership to use for washing new cars, Miller found out that the project was actually an “unlawful diversion of rainwater.” Even though it makes logical conservation sense to collect rainwater for this type of use since rain is scarce in Utah, it’s still considered a violation of water rights which apparently belong exclusively to Utah’s various government bodies.
“Utah’s the second driest state in the nation. Our laws probably ought to catch up with that,” explained Miller in response to the state’s ridiculous rainwater collection ban.
Salt Lake City officials worked out a compromise with Miller and are now permitting him to use “their” rainwater, but the fact that individuals like Miller don’t actually own the rainwater that falls on their property is a true indicator of what little freedom we actually have here in the U.S. (Access to the rainwater that falls on your own property seems to be a basic right, wouldn’t you agree?)
Outlawing rainwater collection in other states
Utah isn’t the only state with rainwater collection bans, either. Colorado and Washington also have rainwater collection restrictions that limit the free use of rainwater, but these restrictions vary among different areas of the states and legislators have passed some laws to help ease the restrictions.
In Colorado, two new laws were recently passed that exempt certain small-scale rainwater collection systems, like the kind people might install on their homes, from collection restrictions.
Prior to the passage of these laws, Douglas County, Colorado, conducted a study a study on how rainwater collection affects aquifer and groundwater supplies. The study revealed that letting people collect rainwater on their properties actually reduces demand from water facilities and improves conservation.
Personally, I don’t think a study was even necessary to come to this obvious conclusion. It doesn’t take a rocket scientist to figure out that using rainwater instead of tap water is a smart and useful way to conserve this valuable resource, especially in areas like the West where drought is a major concern.
Additionally, the study revealed that only about three percent of Douglas County’s precipitation ended up in the streams and rivers that are supposedly being robbed from by rainwater collectors. The other 97 percent either evaporated or seeped into the ground to be used by plants.
This hints at why bureaucrats can’t really use the argument that collecting rainwater prevents that water from getting to where it was intended to go. So little of it actually makes it to the final destination that virtually every household could collect many rain barrels worth of rainwater and it would have practically no effect on the amount that ends up in streams and rivers.
It’s all about control, really
As long as people remain unaware and uninformed about important issues, the government will continue to chip away at the freedoms we enjoy. The only reason these water restrictions are finally starting to change for the better is because people started to notice and they worked to do something to reverse the law.
Even though these laws restricting water collection have been on the books for more than 100 years in some cases, they’re slowly being reversed thanks to efforts by citizens who have decided that enough is enough.
Because if we can’t even freely collect the rain that falls all around us, then what, exactly, can we freely do? The rainwater issue highlights a serious overall problem in America today: diminishing freedom and increased government control.
Today, we’ve basically been reprogrammed to think that we need permission from the government to exercise our inalienable rights, when in fact the government is supposed to derive its powerfromus. The American Republic was designed so that government would serve the People to protect and uphold freedom and liberty. But increasingly, our own government is restricting people from their rights to engage in commonsense, fundamental actions such as collecting rainwater or buying raw milk from the farmer next door.
Today, we are living under a government that has slowly siphoned off our freedoms, only to occasionally grant us back a few limited ones under the pretense that they’re doing us a benevolent favor.
Fight back against enslavement
As long as people believe their rights stem from the government (and not the other way around), they will always be enslaved. And whatever rights and freedoms we think we still have will be quickly eroded by a system of bureaucratic power that seeks only to expand its control.
Because the same argument that’s now being used to restrict rainwater collection could, of course, be used to declare that you have no right to the air you breathe, either. After all, governments could declare that air to be somebody else’s air, and then they could charge you an “air tax” or an “air royalty” and demand you pay money for every breath that keeps you alive.
Think it couldn’t happen? Just give it time. The government already claims it owns your land and house, effectively. If you really think you own your home, just stop paying property taxes and see how long you still “own” it. Your county or city will seize it and then sell it to pay off your “tax debt.” That proves who really owns it in the first place… and it’s not you!
How about the question of who owns your body? According to the U.S. Patent & Trademark office, U.S. corporations and universities already own 20% of your genetic code. Your own body, they claim, is partially the property of someone else.
So if they own your land, your water and your body, how long before they claim to own your air, your mind and even your soul?
Unless we stand up against this tyranny, it will creep upon us, day after day, until we find ourselves totally enslaved by a world of corporate-government collusion where everything of value is owned by powerful corporations — all enforced at gunpoint by local law enforcement.
Source: Healthy Debates
The latest proof of the Globalist plan for total economic imprisonment is available for scrutiny. Thanks to whistleblowers, the clandestine trade missions of international corporatists must contend with public blowback. Recently, WikiLeaks released the secret negotiated draft text, Secret Trans-Pacific Partnership Agreement (TPP), for the entire TPP (Trans-Pacific Partnership) Intellectual Property Rights Chapter. The TPP is the largest-ever economic treaty, encompassing nations representing more than 40 per cent of the world’s GDP. The TPP Agreement along with the Table of Contents and supportive documentation provides the evidence.
When vastly diverse segments of political perspective unify against this assault on economic self-determination, challenging the very exercise of such agreements is in order. In the article, Obama’s Dangerous International Deal, a libertarian viewpoint argues and warns, “The USTR acknowledges the existence of 29 chapters under negotiation. Only five of these chapters deal directly with trade. The other 24 aim to influence many issues, such as food and environmental standards, intellectual property, and pharmaceutical formularies.”
Perennial progressive Jim Hightower writes in an Alternet article, A Corporate Coup in Disguise.
“What if our national leaders told us that communities across America had to eliminate such local programs as Buy Local, Buy American, Buy Green, etc. to allow foreign corporations to have the right to make the sale on any products purchased with our tax dollars? This nullification of our people’s right to direct expenditures is just one of the horror stories in the Trans-Pacific Partnership (TPP).”.
From the Voice of Russia, not usually known for defending transnational cartels, is an observation that you are not hearing in the financial press, Obama attempting to ram through unconstitutional secret treaty.
“With the US debt at over $200 trillion dollars and their grasp on control slipping, Obama and the corporations that have taken over the US Government are attempting to do anything they can to cling to power and enslave the populace.
The fact that the heads of the governments who are a party to the TPP, would attempt to sign such an all encompassing treaty without the knowledge of their respective governments and their people is a something unheard of an unprecedented in history.”
If only free enterprise was the standard of economic commerce, instead of the state-fascism that has developed over the years of the “Free Trade” ruse that has destroyed real competition from the financial environment.
Central planning failed miserably in the old Soviet Union, now we are supposed to believe that a corporatist negotiated arrangement with the full backing and force of government bureaucracies is a superior method for prosperity.
Backers of the TPP pact would have you believe that it is a trade agreement. Nile Bowie in an OpEd, TPP: From corporation personhood to corporate nationhood, has it correct.
“Although proponents of the TPP may claim that its focus is to help the economies of signatory countries create comprehensive market access, eliminate barriers to trade, improve labor rights and encourage environmental protection, every indication suggests that the wide-ranging agreement intends to maximize dramatically corporate revenues at the expense of public health and safety, civil liberties and national sovereignty.”
From the left leaning Huffington Post, Bruce E. Levine interjects a political aspect in
“The truth today, however, is that the United States is neither a democracy nor a republic. Americans are ruled by a corporatocracy: a partnership of “too-big-to-fail” corporations, the extremely wealthy elite, and corporate-collaborator government officials.”
World economic agreements vary little based upon partisan political ideology. The corporate business outsourcing strategy and the offshoring of jobs are the inevitable results of every phony trade deal enacted for decades.
The real objective of TPP is to codify in law and treaty the special treatment that favored industries or well-connected interests exert upon the global economy.
When monopolies eliminate competition, the marketplace suffers a crowding out of main street businesses. With the demise of familiar business enterprises, the multinationals expand without hindrance. Entrepreneurial small business is seldom in a position to fill the void left when the muscle of international finance decides to control a business sector.
Setting environmental standards, intellectual property, and pharmaceutical formularies, behind closed doors endangers the public. Imposing rabid global warming penalties, perpetual expanding of copyright privileges and banning natural holistic supplements and vitamins, all intend to strip choice from consumers or to burden the population with irrational tax obligations.
In an outstanding account, by Don Quijones his article, The Global Corporatocracy is Almost Fully Operational, provided the essential context and ultimate consequence.
“The new generation of trade treaties goes far beyond what was envisaged for NAFTA and GATT. What they ultimately seek is to transfer what little remains of our national sovereignty to the headquarters of the world’s largest multinational conglomerates. In short, it is the ultimate coup de grâce of the ultimate coup d’état. Not a single shot will be fired, yet almost all power will be seized and transferred into private hands — and all of it facilitated by our elected representatives who, by signing these treaties, will be permanently abdicating their responsibilities to represent and protect the interests of their voting constituencies.”
If you have the courage to face the dire implications of this globalist scheme, view the video TPP & One World Government. The bare honesty may be too much for the “PC” crowd.
Advocates of a merchant based economy are inherently in opposition to globalism. Yet, this round of integration under cartel syndicate governance is part of an end game for world economic consolidation. The Corporatocracy that rules over purported democratic countries is the real power overseer that maintains the indentured servant plantation. The comptrollers of the credit dictatorship maintain the financial system for the ultimate controllers.
In the next episode, the Trans-Atlantic Trade and Investment Partnership (TTIP) is analyzed. Complementing the TPP, both accords will place the yoke of even greater mastery over the economies of once sovereign nations.
The day that John Kennedy was murdered, was the day that Americans lost their country. Since that fateful day in November of 1963, our slide into tyranny has accelerated.
Nearly every form of tyranny which has overrun our country has its roots in the post-JFK assassination event. JFK was seemingly the last watchman on the wall against the encroaching tyranny of the newly created national surveillance security police state grid.
There have only been two prominent politicians who have stood up to the tyranny of the New World Order since the death of JFK. These two men would be Reagan (until he was shot by Hinckley) and Ron Paul.
The Missed Opportunity Connected to the 50th Anniversary
Last summer, I predicted that the upcoming 50th anniversary of JFK’s murder would awaken a whole new generation as to the tyranny that the country has fallen under and who is responsible for that tyranny. I wrongly believed that the co-conspirators, the interlocking pieces of the JFK assassination cabal, namely, David Rockefeller, the Federal Reserve, the oil companies, the military industrial complex and the CIA and their mafia assets, would be exposed with all the attention that the 50th anniversary would provide.
I wrongly believed that these groups with their current and undue influence on America would also be readily identified for what they did to JFK and to the country on November 22, 1963. I further believed that today’s younger generation would easily build the bridge linking the corruption and undue influence of these 1963 groups to today’s political landscape and this would be an easy association. Unfortunately, my predictions were in error because we in the alternative media dropped the ball.
The 2013 Establishment Propaganda Machine Is Rolled Out
The day that JFK was murdered was the day that Rockefeller won the world’s biggest lottery.
With the marking of the 50th anniversary of the assassination of John F. Kennedy, there have been over 2,000 books written on the subject and countless radio and television shows devoted to the topic. This fall, the globalist news corporations have produced a rash of new JFK “investigations” which all purport to show different ways to prove that Oswald, and Oswald alone, killed John Kennedy. The new productions (e.g. National Geographic) are so bad and so faulty, that they are laughable.
Media Propagandists Ignore the Government’s Final Conclusion of a Conspiracy
The modern day propagandists are winning the day with regard to the control of the narrative surrounding the assassination. During the height of America’s skepticism regarding the 1964 Warren Report which stated that Lee Oswald killed John Kennedy and that he acted alone, most Americans rejected the “official explanation. What the modern day public, as well as the establishment propagandists, seem to have forgotten is that in 1977, the House Select Committee on Assassinations concluded that Oswald had help and JFK was killed as a result of a conspiracy. This was the final word on the subject from our government on the assassination. However, the history revisionists do not want a hint of a conspiracy because this could give birth to a modern day JFK assassination renaissance in a search for the co-conspirators who killed JFK. Once that search would begin, the descendants of the perpetrators organizations would not be able to escape public scrutiny. We in the alternative and truthful media missed a golden opportunity to wake up the country on this 50th Anniversary of JFK’s death. This fall, if we had devoted a significant amount of time and effort to covering the assassination, and we had been relentless in our efforts, the under 40 crowd would understand who their present enemies are and they would have been awakened to the present day tyranny. We allowed our voices to be drowned out by the mainstream fictional media with their new JFK cover up pieces. Sadly, we lost a golden opportunity to wake up millions of young Americans.
At the height of JFK conspiracy fervor in the 1970′s-1990′s, according to the Gallup Poll, as many as 80% of Americans believed that there was a conspiracy to kill JFK. Today, that number has slipped to 61% thanks in large part to the new propaganda productions which are influencing our younger Americans.
In the 1990′s, Oliver Stone produced JFK and Bill Kurtis and Nigel Turner produced separate investigations into the assassination (i.e. The Men Who Killed Kennedy). In the 1990′s, the country was spellbound by the new revelations which were also bolstered by JFK admirer, Bill Clinton, as he forced the release of millions of classified JFK documents. However, the evil empire struck back around the year, 2000, and today, you see almost nothing on TV which does not show that Oswald was acting alone.
Follow the Money
What is conspicuously missing in most, if not all of the accounts related to the assassination of John F. Kennedy, is the fact that normal homicidal investigative strategies have not been employed by people in the government who would have the power to do so. One of the hallmark phrases in murder investigations is to “follow the money”.
Every year at this time, I become reflective as I wonder what America, and the rest of the world might have looked like if JFK had survived, been re-elected and served a second term as President. This year I decided to follow the money and put my thoughts on paper. So, let’s briefly follow the money.
Everybody knows that the Pentagon was frothing at the mouth to get into an armed conflict in Vietnam and/or Laos. In 1961, JFK resisted the military pressure to place troops in Laos, as he clearly instructed diplomat, Averell Harriman, to get the Laos issue settled because JFK was determined to not put combat units on the ground in Southeast Asia.
It is true that JFK was manipulated by his military advisers to place troops on the ground in Vietnam but solely in the role as “combat advisers”. JFK’s anti-Vietnam war stance frequently gets overlooked because of this. However, in October 1963, a mere month before his death, JFK signed National Security Action Memorandum 263 which called for the withdrawal of 1,000 troops from Vietnam by the end of 1963 and a total withdrawal of all of the combat advisers by the end of 1965. This was one nail in the coffin of JFK.
JFK gave many speeches in which he clearly stated he was opposed to widening U.S. military involvement in the war. South Vietnamese leader, Diem and his brother Nhu were opposed to U.S. attempts to control his regime and Diem and his brother were adamantly opposed U.S. full-scale U.S. military involvement beyond the 16,000 combat advisers stationed in the country. On November 1, 1963, Diem and Nhu were murdered by the CIA against JFK’s wishes. Three weeks later, to the day, John F. Kennedy was murdered. Within nine months following the assassination, the LBJ administration launched the now discredited false flag event, the Gulf of Tonkin attack, and 100,000 combat troops were subsequently sent to Vietnam. Many researchers have proven the involvement of the same CIA and its Mafia connections which dates back to 1942 when the CIA was known as the OSS.
Knowing that the CIA and Mafia were involved in JFK’s murder, does not tell you who ordered the assassination. Any guesses on who profited the most from the Vietnam War? In radio parlance, you will have to stay tuned, the answer will be revealed at the end.
There were huge financial incentives for the American defense industry to participate in the murder of JFK. Yes, that would be the military industrial complex which Ike warned us about in his 1960 farewell address. In 1963, Chrysler corporation and its subsidiaries received the lion’s share of defense contracts for the war, most of which were resold to smaller corporations. Corporations such as Bell Helicopter enjoyed unparalleled growth during the height of the war. There are some interesting and notable parties which controlled the Chrysler defense industry interests in 1963.
Very powerful parties would have stood to have lost a lot of money had the war not materialized into a full-scale air and ground war. Who am I speaking about? All will be revealed when I connect the dots at the end. Oh by the way, the forerunner to the bid rigging and recipient of no bid contracts in Iraq, KBR, was also found guilty of the same thing in Vietnam when they were given the responsibility for building South Vietnam’s military infrastructure. The more things change, the more they do stay the same.
Making Enemies with the CIA: The Bay of Pigs
It was very well known that JFK refused to support and sanction the CIA backed Cuban refugee invasion of Cuba by refusing to allow air cover. The invasion failed and the careers of CIA Director, Dulles, and CIA Assistant Director, Cabal, were over. The proverbial line in the sand had been drawn and the CIA and JFK became mortal enemies with JFK threatening to break up the agency into a “thousand pieces”. Add to this fact, is the fact that it is well-known that the darker parts of the CIA act as mercenaries for certain groups who are not on the government payroll. Today, we would call these shadowy forces, the New World Order.
It is clear that with the advent of the Bay of Pigs, the brain trust for the assassination had been born and they would double down as this agency would perpetrate the cover-up, such as losing the President’s brain during the autopsy to hide the fact that JFK’s fatal head shot came from an exploding bullet, which means that Oswald’s defective Italian rifle could not have been used in the commission of the crime. Maybe this is also why LBJ had the Presidential limousine “cleaned up” immediately following the crime and the vehicle was never subsequently examined as any other crime scene would have been. LBJ should have gone to prison for obstruction of justice, but I digress. Jim Marrs and other researchers have clearly implicated the CIA as the masterminds of the assassination. I agree with Marrs, however, the CIA were not the original planners, they merely were tasked with carrying out the assassination. Regardless, the rich and famous wanted Cuba back and JFK had destroyed their plans for continued domination of the Island state.
Ten days following the Bay of Pigs, JFK gave his famous “secret society” speech. He is the first, and the only President to ever identify the globalists as the enemy of America and humanity as a whole.
If you have never listened to the speech, you should take the time to listen now, for if you do, the events of today will make a great deal more sense.
The Cuban Missile Crisis
Havana had become a play place for the rich and famous prior to the Castro led revolution. Upon seizing power, Castro promptly nationalized all gaming resorts and the Mafia lost their insanely high profits and the rich and famous lost their financial cut, as well as their 1960 version of Bohemian Grove. In the eyes of the rich and powerful, JFK had one more opportunity to get control over Cuba with the opportunity presented by the Cuban Missile Crisis.
In 1962, in response to America’s placing offensive nuclear weapons in Turkey, close to the Soviet border, the Russians did the same in Cuba. This event brought the U.S. and the Soviet Union to the brink of nuclear war. All of JFK’s military advisers wanted to invade Cuba with ground troops. JFK opted for the ever-contracting naval blockade. Although history has proven that our invading troops would have been nuked, and that JFK pursued the correct course of action, the powerful military was now lining up against JFK. And, again, the rich and famous were thwarted in their desire to reassert control over Cuba and the defense contractors smelled the end of the gravy train.
Then in June of 1963, JFK gave an incredible speech at American University in which he called for the total destruction of nuclear weapons. This would have resulted in the end of the financially lucrative Cold War and the “Pax Americana enforced on the world by American weapons of war”, and a movement toward “general and complete disarmament” would have begun. A few months later JFK signed a Limited Test Ban Treaty with Nikita Khrushchev. What would happen to the profits of Raytheon and Martin Marietta (now Lockheed Martin) if there was no cold war? The executives at the defense plants could relax because when JFK was killed, LBJ ordered the single largest increase in U.S. history and before the ink was even dry on JFK’s death certificate.
America Cannot Have Peace, It Is Bad For Business
Please take the time and listen to JFK’s, American University Speech, June 10, 1963, and if you understand what it means to be an American, it will bring tears to your eyes and I believe that this speech also brought a bullet to JFK’s brain, because he was poking a stick into the eyes of the military industrial complex.
The Federal Reserve
On June 4, 1963, President Kennedy issued Executive Order 11110 and this accompanied the Kennedy act which was the beginning of an attempt to strip the Federal Reserve Bank of its power to loan money, at interest, to the government. JFK was on his way of stripping the then 50 year history of fleecing the American people. In effect, JFK, by issuing 4.3 billion dollars of U.S. notes based upon silver held in reserve, JFK was going to be able to wipe away the beginnings of national debt which, today, has mortally wounded the American economy. Please take note of the fact that this event was only a little over 5 months before the assassination. When JFK was murdered, LBJ failed to continue with the program.
Who stood to lose the most money if the Federal Reserve had lost its stranglehold on the American economy? You would be right if you answered Chase-Manhattan Bank with its 6,389,445 shares of Federal Reserve Board Stock valued at 32.3% of the total value of stock at the Fed. Also, Citibank had a lot to lose by this move as well as they were invested in the Federal Reserve shares to the tune of 4,051,851, or 20.5% of the total value. I think you might be getting an idea who owned and/or controlled the majority interests in these two banks in 1963, but there is more before we answer the question on who profited the most from the murder of a sitting President in 1963.
The Oil Depletion Allowance
By the end of 1962, the robber barons which ran the oil industry estimated, that their earnings on foreign investment capital would fall to 15 percent, compared with 30 percent in 1955 if the oil depletion allowance was diminished in accordance with JFK’s proposal.
JFK’s attack upon the oil depletion allowance, which permitted oil producers to deduct up to 27.5% of their income as tax exempt provided the robber barons of oil a lower tax rate and a competitive business advantage, not shared by any other business interests. JFK targeted the oil depletion allowance and it was estimated the government might retain more than $300 million in tax revenue each year if the depletion allowance was reduced. Although the oil depletion allowance remained intact, due to the congressmen who were recipients of oil company campaign contributions, JFK made some very powerful enemies in the oil industry.
It was the oil depletion allowance which made drilling for oil a no risk venture. An oil speculator could drill five wells and if four were dry wells and only the fifth struck oil, the speculator would still make money because of tax breaks resulting from the depletion allowance deducted from owed taxes. President Kennedy pointed out the obvious when he stated “… no one industry should be permitted to obtain an undue tax advantage over all others.”
JFK had made an enemy out of the oil industry and its biggest tycoon, David Rockefeller with the proposal to reduce the oil depletion allowance. Do you know the two banks which controlled 53% of the Federal Reserve in 1963? Rockefeller owned the controlling interest in both banks. How about Chrysler, KBR, Bell Helicopter and the Vietnam War? You are way ahead if you said, David Rockefeller. And what about the nuclear arms race, to which the cessation of the cold war, would have meant the loss of profits to the defense industry? And who controls the defense industry? David Rockefeller. We had to have a cold war, then, for the same reasons we need a war on terror today. It is good for business and with the subsequent growth of government power which comes with war, the erosion of Constitutional liberties increases. All roads for the motivations of the JFK assassination leads to David Rockefeller as being the first mover in the plot.
Do I have the smoking gun that I can place in Rockefeller’s hand? The short answer is no. However, it is safe to say that the day that John Kennedy died, there were no tears shed at the Rockefeller estate.
If JFK’s murder had been anything but the killing of the President, any police detective worth his salt, would have followed the money trail and arrests would have been made based on the known facts. It is unacceptable that as we race toward the 50th Anniversary of the event, this next week, that not one person has been brought to justice in a court of law for the assassination of John Kennedy. Instead, a patsy, Lee Oswald,who never fired a gun on November 22, 1963, was framed and used as the patsy. And before Oswald could talk, he was murdered two days later under very mysterious circumstances. Over the next several days, I am going to publish mini-excerpts on facts about the JFK assassination which are not being covered by the MSM. My first entry will focus on how we know that Oswald did not kill JFK.
Reflections on What Could Have Been
If JFK would have lived, we would have not lost 58,000 lives in Vietnam. Millions of Vietnamese would have been spared. We would have an economy that is backed by silver and we would virtually have no debt because the corrupt Federal Reserve would have faded into oblivion as it did during the Andrew Jackson Administration. America would have schools that would the envy of the world, not the butt of jokes, because we would not spending money to kill people, but rather to educate, improve health care and we could have even afforded to pay off all privately held mortgages if we had only remembered the words of JFK when he reminded the faculty and staff at American University on June 10, 1963, that “We all breathe the same air…”
We would live in a far better place had we lived out JFK’s expressed ideals. I write this piece, not just to remind America of what we lost and how America suffered with Jack Kennedy’s death, I write this piece for those who know little of nothing of what happened on November 22, 1963, mostly young people, in order that they can know that the tyranny being imposed upon us, need not exist. There is a better way and for a moment when I listen to his speeches, I can imagine a better world.
In my last column I emphasized that it was important for American citizens to demand to know what the real agendas are behind the wars of choice by the Bush and Obama regimes. These are major long term wars each lasting two to three times as long as World War II.
Forbes reports that one million US soldiers have been injured in the Iraq and Afghanistan wars.
RT reports that the cost of keeping each US soldier in Afghanistan has risen from $1.3 million per soldier to $2.1 million per soldier.
Matthew J. Nasuti reports in the Kabul Press that it cost US taxpayers $50 million to kill one Taliban soldier. That means it cost $1 billion to kill 20 Taliban fighters. This is a war that can be won only at the cost of the total bankruptcy of the United States.
Joseph Stiglitz and Linda Bilmes have estimated that the current out-of-pocket and already incurred future costs of the Afghan and Iraq wars is at least $6 trillion.
In other words, it is the cost of these two wars that explain the explosion of the US public debt and the economic and political problems associated with this large debt.
What has America gained in return for $6 trillion and one million injured soldiers, many very severely?
In Iraq there is now an Islamist Shia regime allied with Iran in place of a secular Sunni regime that was an enemy of Iran, one as dictatorial as the other, presiding over war ruins, ongoing violence as high as during the attempted US occupation, and extraordinary birth defects from the toxic substances associated with the US invasion and occupation.
In Afghanistan there is an undefeated and apparently undefeatable Taliban and a revived drug trade that is flooding the Western world with drugs.
The icing on these Bush and Obama “successes” are demands from around the world that Americans and former British PM Tony Blair be held accountable for their war crimes. Certainly, Washington’s reputation has plummeted as a result of these two wars. No governments anywhere are any longer sufficiently gullible as to believe anything that Washington says.
These are huge costs for wars for which we have no explanation.
The Bush/Obama regimes have come up with various cover stories: a “war on terror,”
“we have to kill them over there before they come over here,” “weapons of mass destruction,” revenge for 9/11, Osama bin Laden (who died of his illnesses in December 2001 as was widely reported at the time).
None of these explanations are viable. Neither the Taliban nor Saddam Hussein were engaged in terrorism in the US. As the weapons inspectors informed the Bush regime, there were no WMD in Iraq. Invading Muslim countries and slaughtering civilians is more likely to create terrorists than to suppress them. According to the official story, the 9/11 hijackers and Osama bin Laden were Saudi Arabians, not Afghans or Iraqis. Yet it wasn’t Saudi Arabia that was invaded.
Democracy and accountable government simply does not exist when the executive branch can take a country to wars in behalf of secret agendas operating behind cover stories that are transparent lies.
It is just as important to ask these same questions about the agenda of the US police state. Why have Bush and Obama removed the protection of law as a shield of the people and turned law into a weapon in the hands of the executive branch? How are Americans made safer by the overthrow of their civil liberties? Indefinite detention and execution without due process of law are the hallmarks of the tyrannical state. They are terrorism, not a protection against terrorism. Why is every communication of every American and apparently the communications of most other people in the world, including Washington’s most trusted European allies, subject to being intercepted and stored in a gigantic police state database? How does this protect Americans from terrorists?
Why is it necessary for Washington to attack the freedom of the press and speech, to run roughshod over the legislation that protects whistleblowers such as Bradley Manning and Edward Snowden, to criminalize dissent and protests, and to threaten journalists such as Julian Assange, Glenn Greenwald, and Fox News reporter James Rosen?
How does keeping citizens ignorant of their government’s crimes make citizens safe from terrorists?
These persecutions of truth-tellers have nothing whatsoever to do with “national security” and “keeping Americans safe from terrorists.” The only purpose of these persecutions is to protect the executive branch from having its crimes revealed. Some of Washington’s crimes are so horrendous that the International Criminal Court would issue a death sentence if those guilty could be brought to trial. A government that will destroy the constitutional protections of free speech and a free press in order to prevent its criminal actions from being disclosed is a tyrannical government.
One hesitates to ask these questions and to make even the most obvious remarks out of fear not only of being put on a watch list and framed on some charge or the other, but also out of fear that such questions might provoke a false flag attack that could be used to justify the police state that has been put in place.
Perhaps that was what the Boston Marathon Bombing was. Evidence of the two brothers’ guilt has taken backseat to the government’s claims. There is nothing new about government frame-ups of patsies. What is new and unprecedented is the lockdown of Boston and its suburbs, the appearance of 10,000 heavily armed troops and tanks to patrol the streets and search without warrants the homes of citizens, all in the name of protecting the public from one wounded 19 year old kid.
Not only has nothing like this ever before happened in the US, but also it could not have been organized on the spur of the moment. It had to have been already in place waiting for the event. This was a trial run for what is to come.
Unaware Americans, especially gullible “law and order conservatives,” have no idea about the militarization of even their local police. I have watched local police forces train at gun clubs. The police are taught to shoot first not once but many times, to protect their lives first at all costs, and not to risk their lives by asking questions. This is why the 13-year old kid with the toy rifle was shot to pieces. Questioning would have revealed that it was a toy gun, but questioning the “suspect” might have endangered the precious police who are trained to take no risks whatsoever.
The police operate according to Obama’s presidential kill power: murder first then create a case against the victim.
In other words, dear American citizen, you life is worth nothing, but the police whom you pay, are not only unaccountable but also their lives are invaluable. If you get killed in their line of duty, it is no big deal. But don’t you injure a police goon thug in an act of self-defense. I mean, who do you think you are, some kind of mythical free American with rights?
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available
Source: Paul Craig Roberts
It is natural for a society to search for explanations and motivations in the wake of a man-made tragedy. It is also somewhat natural for people to be driven by their personal biases when looking for someone or something to blame. In recent years, however, our country has been carefully conditioned to view almost every criminal event from an ideological perspective.
The mainstream media now places far more emphasis on the political affiliations and philosophies of “madmen” than it does on their personal disorders and psychosis. The media’s goal, or mission, if you will, is to associate every dark deed whether real or engineered to the political enemies of the establishment, and to make the actions of each individual the collective shame of an entire group of people.
I could sift through a long list of terror attacks and mass shootings in which the establishment media jumped to the conclusion that the perpetrators were inspired by the beliefs of Constitutional conservatives, “conspiracy theorists”, patriots, etc. It is clear to anyone paying attention that the system is going out of its way to demonize those who question the officially sanctioned story, or the officially sanctioned world view. The circus surrounding the latest shooting of multiple TSA agents at Los Angeles International Airport is a perfect example.
Paul Ciancia, the primary suspect in the shooting, was immediately tied to the Liberty Movement by media outlets and the Southern Poverty Law Center, by notes (which we still have yet to see proof of) that law enforcement claims to have found on his person. The notes allegedly use terms such as “New World Order” and “fiat money”, commonly covered by those of us in the alternative media. The assertion is, of course, that Paul Ciancia is just the beginning, and that most if not all of us involved in the exposure of the globalist agenda are powder kegs just waiting to “go off.” The label often used by the MSM to profile people like Ciancia and marginalize the organizational efforts of liberty based culture is “anti-government.”
The establishment desires to acclimate Americans to the idea that being anti-government is wrong; that it is a despicable philosophy embracing social deviance, aimless violence, isolation and zealotry. Looking beyond the mainstream position, my question is, is it really such a bad thing to be anti-government today?
The terms “anti-government” and “conspiracy theorist” are almost always used in the same paragraph when mainstream media pundits espouse their propaganda. They are nothing more than ad hominem labels designed to play on the presumptions of the general population, manipulating them into dismissing any and all alternative viewpoints before they are ever heard or explained. The establishment and the media are ill-equipped to debate us on fair terms, and understand that they will lose control if Americans are allowed to hear what we have to say in a balanced forum. Therefore, their only fallback is to bury the public in lies so thick they won’t want to listen to us at all.
The Liberty Movement now has the upper hand in the war for information. The exposure of multiple conspiracies in the past several years alone has given immense weight to our stance, and reaffirmed warnings we gave long ago.
When we spoke out against the invasion of Iraq, commissioned by George W. Bush on the dubious claim that Iraqi weapons of mass destruction were an immediate threat to the security of our nation, we were called “liberals” and “traitors.” Today, Bush and Cheney have both openly admitted that no WMD’s were ever present in the region. When we attempted to educate the masses on the widespread surveillance of innocent people by the NSA, some of them laughed. Today, it is common knowledge that all electronic communications are monitored by the Federal government. When we refused to accept the official story behind the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Fast and Furious program, we were called “kooks”. Today, it is common knowledge that the Obama Administration purposely allowed U.S. arms to fall into the hands of Mexican cartels. When we roared over the obvious hand the White House played in the Benghazi attack, we were labeled “racists” and “right wing extremists.” Today, it is common knowledge that the White House ordered military response units to stand down and allow the attack to take place. I could go on and on…
Events that were called “conspiracy theory” by the mainstream yesterday are now historical fact today. Have we ever received an apology for this slander? No, of course not, and we don’t expect one will ever surface. We have already gained something far more important – legitimacy.
And what about Paul Ciancia’s apparent belief in the dangers of the “New World Order” and “fiat money”? Are these “conspiracy theories”, or conspiracy realism? The Liberty Movement didn’t coin the phrase “New World Order”, these political and corporate “luminaries” did:
Is economic collapse really just a fairytale perpetrated by “anti-government extremists” bent on fear mongering and dividing society? Perhaps we should ask Alan Greenspan, who now openly admits that he and the private Federal Reserve knew full well they had helped engineer the housing bubble which eventually imploded during the derivatives collapse of 2008.
Or, why not ask the the White House, which just last month proclaimed that “economic chaos” would result if Republicans did not agree to raise the debt ceiling.
Does this make Barack Obama and the Democratic elite “conspiracy theorists” as well?
It is undeniable that government conspiracies and corporate conspiracies exist, and have caused unquantifiable pain to the American people and the people of the world. Knowing this, is it not natural that many citizens would adopt anti-government views in response? Is it wrong to distrust a criminal individual or a criminal enterprise? Why would it be wrong to distrust a criminal government?
The Purpose Behind The Anti-Government Label
When the establishment mainstream applies the anti-government label, they are hoping to achieve several levels propaganda. Here are just a few:
False Association: By placing the alleged “anti-government” views of violent people in the spotlight, the establishment is asserting that it is the political philosophy, not the individual, that is the problem. They are also asserting that other people who hold similar beliefs are guilty by association. That is to say, the actions of one man now become the trespasses of all those who share his ideology. This tactic is only applied by the media to those on the conservative or constitutional end of the spectrum, as it was with Paul Ciancia. For example, when it was discovered that Arizona mass shooter Jared Loughner was actually a leftist, the MSM did not attempt to tie his actions to liberals in general. Why? Because the left is not a threat to the elitist oligarchy within our government. Constitutional conservatives, on the other hand, are.
False Generalization: The term “anti-government” is so broad that, like the term “terrorist”, it can be applied to almost anyone for any reason. The establishment does not want you to distinguish between those who are anti-government for the wrong reasons, and those who are anti-government for the right reasons. Anyone who questions the status quo becomes the enemy regardless of their motives or logic. By demonizing the idea of being anti-government, the establishment manipulates the public into assuming that all government by extension is good, or at least necessary, when the facts actually suggest that most government is neither good or necessary.
False Assertion: The negative connotations surrounding the anti-government stance also suggest that anyone who defends themselves or their principles against government tyranny, whether rationally justified or not, is an evil person. Just look at how Washington D.C. has treated Edward Snowden. Numerous political elites have suggested trying the whistle-blower for treason, or assassinating him outright without due process, even though Snowden’s only crime was to expose the criminal mass surveillance of the American people by the government itself. Rather than apologizing for their corruption, the government would rather destroy anyone who exposes the truth.
False Shame: Does government criminality call for behavior like that allegedly taken by Paul Ciancia? His particular action was not morally honorable or even effective. It helped the establishment’s position instead of hurting it, and was apparently driven more by personal psychological turmoil rather than political affiliation. But, would it be wrong for morally sound and rational Americans facing imminent despotism within government to physically fight back? Would it be wrong to enter into combat with a totalitarian system? The Founding Fathers did, but only after they had exhausted all other avenues, and only after they had broken away from dependence on the system they had sought to fight. Being anti-government does not mean one is a violent and dangerous person. It does mean, though, that there will come a point at which we will not allow government to further erode our freedoms. We will not and should not feel shame in making that stand.
I do not agree with every element of the “anti-government” ethos that exists in our era, but I do see the vast majority of reasons behind it as legitimate. If the establishment really desired to quell the quickly growing anti-government methodology, then they would stop committing Constitutional atrocities and stop giving the public so many causes to hate them. If they continue with their vicious bid to erase civil liberties, dominate the citizenry through fear and intimidation and steal and murder in our name, then our response will inevitably be “anti-government”, and we will inevitably move to end the system as we know it.
Source: Brandon Smith | Alt-Market
“The trade in derivatives, using home notes, was designed as a Ponzi scheme. Excel knew it. Cadwalader, Wickersham & Taft (CWT), knew it. My fellow junior associates laughed at me, senior associates got mad at me, and the senior partners ultimately asked me to resign or be fired when I wrote repeated lengthy memoranda explaining this out to them.” – Charles Lincoln, III, PH.D., Harvard, J.D., University of Chicago, School of Law
Who is Charles Lincoln, III?
In October, 1993, Charles Lincoln, III began work as an associate at Cadwalader, Wickersham & Taft (CWT). He had just completed a judicial clerkship for Kenneth L. Ryskamp, U. S. District Judge, Southern District of Florida. During his clerkship with Judge Ryskamp, Lincoln had planned, coordinated, and framed the jury questions for a very large securities fraud trial in Palm Beach against Alan B. Levan’s Florida-based BankAtlantic Bancorp and Subsidiary Bank Atlantic Financial Company (BAFCO), which were heavily involved in Florida Real Estate from 1952-2011.
What he was about to learn, and challenge, would change the course of his life, from one of privilege to destitution.
In many ways, Lincoln might have appeared exactly the kind of associate who could be expected to make partner rapidly. Ambitious, bright, and energetic, CWT hired him because he received top law school grades in Securities, Antitrust, and Banking Law, as well as for his clerkship experience in Securities & Banking cases in the post-S & L Collapse period in Florida. He had also been President of the Environmental Law Society at University of Chicago, School of Law.
In law school, he had become intrigued by the role of securities in establishing, maintaining, and shaping the global-elites of the 20th century. The complexities of hierarchical and socio-political structures had been his greatest interest in Anthropology & History at Harvard.
In his first month at CWT he turned in 393 billable hours wildly exceeding any expectations. First year associates are expected to bill at least 2000 hours per year, Lincoln managed to do this in less than six months. At Cadwalader, Lincoln aspired to a professional specialization in securities litigation, fraud, shareholder’s and directors’ relations, rights and obligations, general agency and relationships of fiduciary duty.
Lincoln had taken up law as a second career after a decade as a working archeologist in Mexico & Central America, during which time he wrote a doctoral dissertation “Ethnicity & Social Organization at Chichen Itza, Yucatan” at Harvard’s Peabody Museum. His dissertation resulted from a project he directed in his 20s, funded by the National Geographic Society, Harvard’s Peabody Museum of Archaeology & Ethnology, and private donors such as Doris Zemurray Stone and novelist James A. Michener.
As an archaeologist, Lincoln had become frustrated, acutely aware of problems mounting in the world, which originated in finance. Determined to use law creatively as a force for positive change, he enrolled at the University of Chicago, School of Law. At the school, he served as President of the Environmental Law Society (ELS), presiding on a year-long symposium at the Law School in 1990-1991, concerning oil spills in the immediate wake of the Exxon Valdez disaster of March 24, 1989.
Raised as the grandson, and effectively adopted son, of a wealthy petro-chemical engineer & military supplier in Highland Park, Dallas, Texas, Lincoln was not a stranger to the better addresses in New York. The welcome dinner held at the Waldorf Astoria for the twenty associates hired at the same time, of which he was one, did not impress him. Cadwalader, Wickersham, & Taft, though claiming to be the oldest, founded in 1792, the same year as the New York Stock Exchange, was by no means the largest.
Lincoln knew Cadwalader’s history and greatest claim to fame and power. This is its status as primary law firm to the Bank of New York (BNY), now BNY-Mellon, founded in 1784 by Alexander Hamilton, 8 years before Cadwalader opened its doors under a different name.
The long relationship between the oldest bank and the oldest Wall Street Law Firm include Cadwalader’s role in setting up BNY to be the very first law firm to be traded on the NYSE. Cadwalader’s historical policies have consistently, matched and supported those of the BNY and the thinking of Alexander Hamilton.
Cadwalader’s flagship office was then at 100 Maiden Lane, in New York 10038, close to the heart of the financial district in New York.
Having been hired on for Cadwalader’s litigation department, Lincoln encountered a department which was essentially inactive in 1993. The only the only active cases involved municipal defense to voting rights act cases in California.
Even the litigators, in 1993, were all working on one project, one particular project which was shrouded in great mystery and secrecy.
The Excel Mortgage Project
Instead of litigation, Lincoln along with all other first year associates, were temporarily to work with the “Structured Finance Department” on preparing the registration statement of Excel Mortgage. Lincoln’s role was to review and assess a series of some 1500 Arizona residential properties in relationship to state and federal environmental law and geographic issues, such as cultural resource management, and other points relating to the entire history and possible condition and liabilities of these properties.
The 1500 or so properties, subject of his study, were earmarked as assets being “deposited” into the Excel Mortgage Bond Fund, along with promissory notes originated by a number of creditors on homes conforming to a certain size and value profile, but having no other relationship. These were not part of the same communities, not part of a single development project, not built by a common builder, or anything else. This struck Lincoln as strange. Why “pool” all these unrelated properties together? And would be in the completed “pool?” Why was the Bank of New York underwriting this project?
Enter the Securitized Derivative
Excel Mortgage, a highly valued client of CWT was about to become part of history, doing something that had never been done before: registering a bond for sale to the public, which bond was based on pooled notes, a hybrid of debt and equity interests in and contingent claims to realty. This type of financial instrument had never before been sold to the public, though it had existed for about 25 years in the “private placement” market.
Lincoln was unwittingly participating in the first initial public offering (IPO) of a bond, a debt instrument, derived in part from promissory notes, ‘debts,’ and in part from contingent pledges of title, ‘secured equity,’ in residential real estate.
Securitized derivatives were being born at 100 Maiden Lane.
Bernard Madoff, who founded the NASDAQ when he was 33, was a prominent client of CWT, walking the floors of Cadwalader late at night.
The entire staff of CWT, underwritten by the Bank of New York, supporting Excel, were charged getting these new-fangled “derivative” instruments past examination by the Securities & Exchange Commission (SEC).
This was an arduous, and expensive task, necessitating a “lint-picking” review, before these ‘derivative instruments’ could be packaged under the name of Excel Mortgage and offered both on the NYSE and NASDAQ. An SEC Registration Statement is an application for Federal Blessings affirming investing in a certain stock, bond, or “other instrument or obligation” is a reasonable investment for an average investor to make.
Supposedly “sophisticated investors” can do whatever they want to do, so long as it’s not expressly fraudulent or otherwise illegal. But the average grandmother investing for her grandkids’ college needs Federal Protection. Like “Social Security”, the concept of “Security” in the “Securities and Exchange Commission” is essentially a matter of “Trust us, We’re the Government.”
SEC Registration Statements require, prior to sale of any debt or equity instrument to the public, disclosure of all a companies’ assets and liabilities along with the qualifications of its officers and directors, and more.
Nobody outside of the law firms who prepare such things and SEC staff, would ever read this, but preparing the registration would bring CWT millions of dollars.
Excel Mortgage, however, was not selling stock in itself as an enterprise or an entity: it was selling a pooled collection of utterly unrelated and unconnected and barely similar promissory notes with contingent interests in, and access to, equity ownership of real property owned by 1500 different people and subject to 1500 separate notes and mortgages.
1993 – Anomalies, and Questions, Emerge
Who was to supervise its operation after “Registration”? What coherence did this “enterprise” have ASIDE FROM the Registration Statement? Would anyone ever recognize it as a “business?” If so, how and why? Lincoln was puzzled and perplexed, and not satisfied with any of the answers he was getting.
The SEC did not appear to inquire into post-issuance management or maintenance of the pool of assets. Once “securitized” the notes would still be handled by individual originators or assigned to servicers. Lincoln asked “what was there left to be assigned or handled once the notes and mortgages were pooled?”
The SEC is charged with protecting small individuals and the corporate investor.
The SEC is expected to be involved in examining and making inquiries about a company’s claims for potential and predictions of earnings or profitability.
On what opinion or data would these be based for the Excel Mortgage Pool, since there weren’t any?
The opinions used were based on the “normal statistical performance of similarly credit rated and similarly valued mortgages in similar markets from studies of a group at MIT Sloan School of Management headed by a then no-name professor Frank J. Fabozzi. Fabozzi, with close ties to the Bank of New York, was also among the occasional Night walkers at Cadwalader.
The process of preparing an SEC registration statement is a gold-mine for lawyers inclined to highly detailed work. Such a process for registration can normally require Lincoln said, over a thousand individual revisions. The Excel Mortgage registration would be subject to over 2,000 revisions, but in all this there was still no attention given to claims of ownership, transfer of title, the laws of agency and fiduciary duty of managers, any of the concerns which normally plague the corporate world and frame the concern of SEC examiners and securities lawyers.
What’s In It for CWT?
The careers of young associates, and even older partners, at firms such as Cadwalader, Wickersham, & Taft, Chadbourne & Park, Sullivan & Cromwell, or Skadden, Arps, depend upon work measured in billable hours. Cadwalader had a “billing goal” of multiple millions of dollars for the Excel Mortgage registration project.
Lincoln recalls three relevant details:
First, the firm was never able to reach it’s own goal of billable hours by the time the project was complete.
Second, the firm sent constant “internal memoranda” by e-mail to all employees, down to the lowliest legal secretaries and paralegals, to work harder and BILL MORE HOURS. It was simply inconceivable that Cadwalader might have to refund any part of enormous retainer paid for the Excel Mortgage, SEC Registration Statement project. The money for this had all been advanced by BNY, who counted on Cadwalader to do the job which needed to be done.
Third, the practical purpose of any billable hours stood quite above and beyond any possibility of doubt or question. In fact, any and all billings, however described, so long as they were assigned to the Excel Mortgage Registration Statement Account, were welcomed.
Lincoln was therefore able to unleash his curiosity, delving late at night after hours into issues which ranged far, far afield from the environmental history, condition, and culturally or historically significant use or contents of the subject properties.
Despite some losses during the 2007-2008, CWT was in 1993-1994, and remains today, the top firm representing the creators and implementing the designs of “structure finance and derivative securitization” world wide. Lincoln wanted to understand what he was doing, and what he was involved in creating. The more he found out, the more troubled he became.
As an entry-level associate at Cadwalader Lincoln received his own office and secretary and paralegal. Little time was spent interacting with others in the office. A quick question might be asked but friends did not come quickly. Each associate knew what mattered was the hours billed, and friendly socialization was hard to itemize even on the Cadwalader charts. Hanging over the heads of all new associates was the goal of “making partner.”
As an anthropologist, Lincoln saw immediately the subculture of the law firm had its own standards, values, and mandates. The firm had high standards for dress which included ties which remained in place all day, regulations for tie clips or tie pins and cufflinks and belts and, of course, shoes, whether white or “normal.”
Standards for women included skirts below the knee and mandated the length for sleeves and the height of necklines and collars. Even the length of hair, for women, was described and outlined in the firm guide, although one paralegal from the litigation department was granted a special exemption, for cause. Known to and noted by everyone in the firm, for his ponytail and paisley shirts, the associate was hired from SDS in California as “our eyes and ears to the lower classes,” as the senior partners consistently and uniformly described him.
Lincoln, as an undergraduate, had twice been voted, “best dressed man on campus”, but the whole Cadwalader atmospheric ethos of bloodless conformity, as noted above, was for him one of stifling suffocation.
The anomalies which began to intrude on Lincoln’s consciousness during his late hours trying to understand the “entity” being sold almost as if it were a company or entity, without actually being one, became an obsession. At first, this lead only to more billable hours, but the trip down the rabbit hole became increasingly disconcerting.
All questions of real value or reasonable expectations, lead the inquirer to the Bank of New York’s Heart, ending any questions.
The Disconnect between Law and Derivatives
Lincoln’s law school classes, under the University of Chicago’s Andrew M. Rosenfield, William Landes, Geoffrey Parsons Miller, and Richard A. Posner, and from his further and ongoing research as a Law Clerk with Ryskamp and now at Cadwalader, had considered the question of real value and reasonable expectations.
Issuing and selling securities, debt or equity, takes place when a company, or group of people who have control over assets they planned to use to make money, or with which they were already doing something generally profitable, or wanted to raise new capital and/or liquidate their ownership and interests in an ongoing and successful venture.
This did not come close to describing what Bank of New York had underwritten for Cadwalader to prepare for Excel Mortgage.
This SEC Registration Statement gave birth to new type of “debt-equity-derivative debt instrument” which had none of the elements or characteristics of a traditional enterprise at all. It was PAPER MADE FROM PAPER, SECURED BY PAPER.
Indeed, the Excel Mortgage Bond, which was soon to be popped onto the market with an SEC certification of Federal conformity was a creation of the lawyers, by the lawyers, for the lawyers.
As one of the most senior associates, now firm Chairman, Christopher White explained to Lincoln when he asked him, “Who will own the interests in these notes once they are securitized?” He grinned boyishly from ear-to-ear and said, “we will, because everyone will have to pay us to tell them.”
Without any unifying manager or common owner for these properties, the pool of notes struck Lincoln as like nothing so much as “res nullius” in Ancient Roman Law—the legal category of “property belonging to no one”, e.g. virgin forests, wild beasts and undomesticated fur and game animals of every kind, the un-owned and un-ownable creatures of the deep.
Excel Mortgage was going to pool all these “derivative” real estate mortgage interests, whose only commonalities marking them as similar were the price, promissory note, range, size and “single-family home-residential” nature of the properties, and the credit or FICO scores of the owners.
Having “pooled” these “cherry picked” assets, Excel was going to create a strange creature without an owner until either default or foreclosure moved someone to homestead these unownable notes back to control and “ownership” again.
In essence, the concept was, “everything belongs to everyone in common” and “debt is not individual but collective.”No one owes his or her debt to any person, but everyone owes it to everyone to pay. This concept seemed, even to Lincoln in 1994, strangely reminiscent of Aldous Huxley’s “Brave New World.”
The Excel Mortgage Bond to be securitized reflected an artificial “derivative” interests in a non-coherent, uncontrolled mass of wealth, which could and would have to be tamed individually, just like hunting the wild game of the woods.
There would be only a pretense of relationship between the notes originated and the notes collected upon.
There was no one to oversee the transfers, no one to audit the exchanges of values; there were quite simply no responsible parties anymore than anyone can take charge of wheat chaff thrown into the wind or the by-products of a paper mill dumped into a river, yet these “derivative by-products” were being STRUCTURED into something said to have value.
Around 1500 or 2000 properties had been collected together and placed in a basket or pool. But no single plan of real estate development or construction or sales was involved, nor was any contemplated. Nothing joined these properties as a class. Most were not new, but merely resales.
Raising the Issues
Lincoln dug in further, producing and circulating to all his fellow associates and the senior partners at Cadwalader his own memoranda: lengthy studies and analysis on issues such as the fiduciary obligations in the Law of Agency.
Fiduciary responsibility of issuers of securities to purchasers, holder in due course doctrine, implied covenants of good faith and fair dealing between parties to a contract, privity of contract itself, and commercial paper doctrines such as endorsement and ownership as holder, and the comparative rights and priorities of “naked” holders vs. “perfected” holders.
As Lincoln’s months stretched out among the whirring circular brushes which polished the green and white marble floors of CWT, he spent more-and-more time with the partners of real estate department, which seemed to understand his worries and concerns better than others, certainly better than the Fourth or Fifth year associate in charge of coordinating the Excel Mortgage Project who kept explaining “this is my road to partner; if I can finish this and make it happen, I won’t have to worry about how to live on these lousy six figure salaries anymore, I’ll finally be making millions, and that’s why we all came here, isn’t it?”
Questions Find Answers
Since it was not why Lincoln had arrived at 100 Maiden Lane this presented a dead end for him.
The real estate connection, and an aborted plan to open a CWT office in California, permitted him to compare the Excel Mortgage project with another, more traditional real estate development Sacramento, California.
An extremely prominent CWT client based in Los Angeles was complaining and encountering major problems because of a parallel but separate and distinct set of misapplications of the law of agency, fiduciary duty, and obligation, also originating from the same historical “Cadwalader Memorandum” on transfer of interests which had triggered the explosion of derivative innovations in the securities realm.
With CWT acting as counsel for an old and distinguished California family and collection of enterprises, the Ahmansons, tracts totaling several dozen suburban “townships” in El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba Counties had sold by the Ahmanson family to a Japanese firm and retained an “Ahmanson Construction Group.”
The intention was to build a resort in the area for the benefit of the Japanese owners acting as “construction agents.”
Normally construction is performed pursuant to agreements with “independent contractors” who make estimates but are not obligated to continue working if their estimated budgets prove insufficient to complete a project. The Japanese investors were seeking to securitize all the sales in this immense, almost unimaginable project.
Involved, were the Bank of New York, with Cadwalader’s long-time California based H.F. Ahmanson holding Company, parent company both to Ahmanson Construction and the since failed Home Savings of America Bank.
The “construction agency relationship” which Cadwalader had created imposed devastating duties and obligations on Ahmanson. As agents, Ahmanson Construction was obligated to use its own money to achieve the ends of the principal, in this case the Japanese company which had purchased the real estate but woefully underfunded the construction of the vast tracts of homes. Ahmanson could not make a profit or even break even. In effect, they had become slaves to the Japanese and might never be compensated.
Lincoln, having reviewed the facts, pointed out to Stephen Meyer, Richard C. Field, and John McDermott, the partners most closely associated with Ahmanson, that by not only failing to protect Ahmanson, but in fact, selling them into quasi-slavery as agents under a contract without guarantees of adequate funding to execute agency obligations, the firm had made a ghastly mistake amounting to nothing less than legal malpractice. This was a breach of fiduciary duty in and of itself.
Lincoln was told, “This firm has a policy of doing no wrong. Therefore, you are wrong. The firm is never wrong. You should reevaluate your conclusions.”
This happened in 1994, only two and a half years after the sensational October 1991 confirmation hearings for Justice Clarence Thomas. The Paula Jones allegations against the new President Clinton, were beginning. “Sexual harassment” became a great boogie-man haunting law firms all over America.
Consequences are Clarified
After reading his memorandum on the Ahmanson project, these senior partners asked Lincoln to leave the room.
When they called Lincoln back in, they told him, very solemnly,
“you know you need to keep your nose clean around here. We have all received reports that you have taken your secretary Alex to lunch more than once and what’s more you gave Holly, the Senior Secretary in recruitment & personnel, flowers for her birthday and Valentines Day. So just remember: never ever do anything, anything at all, that you would not want to see published on the front page of the New York Times. Anything here can be, you know, and anything will be, at the drop of a pin, because everyone is very sensitive to questions of decorum these days, and, after all, you are a married man.”
Lincoln reports he did not even bother to ask how they happened to think of this only after a three hour meeting concerning the Ahmanson contract of construction agency, when he had never heard about any concerns of this nature before.
At work, Lincoln continued to pile up daunting billable hours doing research on a growing list of issues, each going back to the dissection of the elements of value, which were being “deposited” into the derivative pool. He was determined to understand what was really happening. Why were they doing this?
Confirming what Christopher White had told him before, a Properties Department attorney named Stephen Meyer, advised Lincoln to keep his mouth shut, this happening shortly before Lincoln was asked to resign. Both men had made it clear, in nearly the same words, that Lincoln should be careful about questioning or criticizing firm’s plan for transforming the economy of the Western World, “this is how things are being done these days. We do because we get to charge everybody. This is how the whole world will be managed by 2020, we have a plan.”
As Lincoln was to discover, there was a plan. A book called “Cadwalader 2020” contained a comprehensive manifesto of how the world would be changed by the year 2020. Unsecuritized individual debt would no longer exist.
During Lincoln’s entire time at CWT, the firm maintained a high level of security over the Excel Mortgage work, work which finally involved everyone at the firm. All who worked at the firm had to submit to a frisk on leaving work. No papers or laptop computers or diskettes, this still the era of 3.5 inch diskettes, were to be taken home or removed from the premises, and no external e-mail was allowed connecting to firm e-mail. All firm e-mail was in fact carefully monitored.
To entirely use up the retainer on the Excel work, Lincoln and all the other first and second year associates found themselves in a large conference room supervised by some of the partners pasting labels on files.
The partners had to review the signature pages before officers of Excel would sign the documents, and the associates were there to prepare and affix signature tabs, saying “sign here, Mr. So-and-So, on to the final pages of Statement before final submission.
Lincoln said it seemed odd to use attorney billable time to prepare, double-check, and verify signature tabs, even on a super important document until you considered the driving desire of CWT to maximize their billable hours.
Billing rates were $150.00 an hour for new associates, $60 – 80 an hour for paralegals, and $40 – 50 an hour for secretaries. On being told that he had failed to bill his secretary’s and paralegals’ time for bringing him after hours meals and snacks, Lincoln asked the senior associate in charge of organizing the Excel Mortgage Project how much the firm billed out for the hourly operators of the automated circular marble floor polishers which whirred seemingly ceaselessly day and night throughout the offices. Epstein just glared at Lincoln silently. Those hours were not billable.
CWT was determined to drain every possible penny from the work done for Excel Mortgage, and did. This appeared to be consistent with the Bank of New York’s plan in financing the project in the first place.
As Lincoln’s research continued, the business plan being followed by Excel Mortgage also emerged, in all of its complexity and disturbing detail. The company had seen the potential to redefine a debt, recreating it as equity, and equity can be used as collateral for originating and extending more debt, which can be hybridized with contingent interests in an ever expanding pyramid of debt, doubled into equity, doubled into debt…. And again, this was the CWT-BNY plan for perpetual inflation.
There was quite simply no plan other than to pool and securitize the notes to issue X millions of dollars in bonds. These would be sold on the major stock exchanges, generating equity. The equity would be used to extend or originate more money to the borrowing public who then “sell” or give their new notes. This then generates more equity through debt, a constantly pooling and production of derivatives then sell to continue the cycle.
Ponzi Scheme Emerges
After his first month of painful research, it took Charles an additional 6 weeks to figure out and map the nature of the pyramid, another 6 weeks to check his work and accept the results, and then he started writing memoranda, one after the other, each one critiqued by other associates or the senior partners and getting longer and longer.
His first memorandum was entitled “The Law of Fiduciary Duty in Agency.”
His second was “Transfer and acceptance of instruments by endorsement and receipt: who is responsible?”
There were at least four others, the longest of which was over 500 pages.
Lincoln’s conclusion was breathtakingly simple: “merger of identities destroys the identities merged, there is no individual liability for debt in the absence of privity of contract, and no privity of contract without individual identity of contracting parties.”
It was clear from the elated attitude of the Senior Partners that designing and implementing the Excel Registration Statement, as the first IPO of its kind, stood in their minds as their most important contribution to western civilization, as envisioned through the world of “Cadwalader 2020”.
Finally, Lincoln was asked to resign, about six weeks shy of his first anniversary. His questions and concerns had not ended and the Partners were becoming hostile.
Leaving with a not quite “Golden Parachute” consisting of a $50,000 severance payment, he had vocally identified a series of challenges which the management of Cadwalader had no intention of addressing. It was now clear to Lincoln these were not any kind of mistake or oversight.
Lincoln’s final memorandum at Cadwalader opined, perhaps overestimating general knowledge of the law, “no mortgage note included in the Excel mortgage pool will ever be lawfully collected in the event of borrower/credit-debtor default, because the pooling of identities obliterates individual obligations and rights, and discrete transactions lie at the foundation of our system of contract and debt.”
At the meeting where he finally resigned, the Senior partners, perhaps understanding the American public better than Lincoln, said to him, “Who is ever going to notice lack of privity of contract besides you? They teach you all those archaic “Elements of Law” at the University of Chicago, we know all about it, but nobody does business that way anymore. The economy of the future is now, nobody cares about endorsements and signatures anymore, it’s all going to be electronic, anyhow.”
Lincoln responded, “well, then, you’re going to have to change the law.” And the masters of the CWT universe said, “Don’t let the door hit you on your way out, we write the law, we interpret the law, we tell everyone in America what the law means, that’s what we do.
The Price Paid
The next nineteen years of Lincoln’s life have been filled with constant attacks from the legal establishment from directions and in ways which exacted a hideous toll on him and those he loves. He has repeatedly learned what it is to be hated, rejected, despised, a man of sorrows and acquainted with grief. In those two decades he lost his wife, his birth family, and his son, all his inherited property, including several homes and a gigantic private library and personal collections of fossils, numismatic, painted, and sculptural art, his law licenses in three states and even his own not-at-all-insubstantial investments.
Lincoln notes that, after what can only be called a blessed beginning in life with his loving grandparents supporting him, an exceptional education, and basically a privileged and charmed first three decades of life, his consistent pattern of loss only began when he was 33-34 years with his entry into private law practice at Cadwalader, in what, quite simply should have been “the best of all possible worlds.”
Left with nothing, he refused to quit.
All of these events began after those critical months, less than a year, that he had spent at Cadwalader, Wickersham, & Taft.
As historical events unfolded, parallel to his own life, his worst projections regarding the impact of the new market in mortgage derivatives proved to be frighteningly accurate. Lincoln began to research how the runaway Ponzi Scheme could be halted, and reversed.
According to Lincoln, for the past ten years, his life has been entirely shaped by the mortgage crisis and its origin in securitization. The question which, he says, drove him is how private property and integrity of contract could restored in the face of the “New World Order” Plan. This is the plan Lincoln first became aware from the internal firm booklet “Cadwalader 2020,” while he was working at CWT in 1993-1994.
Lincoln believes such restoration is possible. The systemic fraud has not gone unnoticed, as CWT and BNY clearly thought would be the case. Their concern is registering through the rising wave of settlements which are now extinguishing the cases they deem most threatening. These cases are now settling on the courthouse steps for significant amounts and return of the real estate, free and clear of mortgage related liens.
Banks understand the ominous possibilities they face if juries realize what really happened. And today, it is not just Cadwalader. Nearly every major financial law firm in the United States who is involved, directly or indirectly, in the implementation, defense, or coverup of securitization is potentially liable.
This potential for liability makes the settlements paid out by cigarette companies seem like chump change.
As long as such settlements are few and remain outside the view of the courts, the banks are safe. But the moment juries hear the facts, and see the reality, the banks are toast, and they know it.
And here, Lincoln said, is the leverage point from which change can be enacted. More cases must be litigated using the facts so cases won in the light of day can become case law and precedent. The war can be won, but will be costly. This challange requires, along with several lines of attack, the means for funding litigation.
One possible solution is to solicit private direct investment in litigation for individual cases in exchange for a share of the awards by the jury. Another is to design an “anti-derivative derivative” plan which bundles and pools both investments and potential awards, allowing Americans at all income levels to invest in the effort.
For this derivative, investors would understand both the risk and the benefits of investing.
Lincoln’s team, they know, cannot fund its efforts as the banks do, by an out of control pyramid scheme piling debt on equity to create more debt, but Lincoln sees a certain symmatry achieved by using the weapons created by the originators of the problem against them.
Either solution, Lincoln says, lies directly in the hands of Americans. If the money is available, litigation can go forward. He and the team see a build out across the country, with litigation taking place in every state as attorneys sign on and funds are available.
They have already begun. Lincoln’s team is now working with homeowners and the currently small number of attorneys willing to litigate. They have no illusions. They are aware they are going up against the most powerful institutions in the world. But they also know that, if they are successful, the crack now forming in the protections constructed by CWT, BNY, and so many others, makes it possible to reverse the ominous trends in the American housing market while proving it is possible to enact accountability for a corrupt establishment and good for the people.
If houses now held by banks go on the market, or are returned to their owners, the heavily inflated prices of homes will drop to its natural market level based on supply and demand. Communities will stabilize, as will the lives of Americans.
The America which emerges from this crisis can be very different. No stability will ever result from the current expectations of perpetual economic growth relying on perpetual inflation and perpetual motion in the market place, and the resultant social instability.
The 99% need to bring the 1% home to live with the rest of us in peace, Lincoln says.
Given the propensity of the legal establishment to go after activist attorneys, Lincoln admits this will not be without risk, but public involvement can help here, too. He remains confident, many will step forward. They did so in 1775 and in other times of crisis in America.
Failing to act, he said, means abandoning Americans to the cartels and monopolies who are responsible for what has happened to our country.
Lincoln and other members of the team believe strongly most attorneys and judges, when asked to make a choice in the light of day, will do the right thing.
The effort has already begin in New Jersey. Right now he has a case in motion in the Garden State, just across the river from Manhattan, where Cadwalader still holds sway at the ominously named “One World Financial Center.”
Now, they are looking for more attorneys who love and respect the law, and investors who know what matters most and want to make a difference. His website is, homeownersjustice.com.
In 2009, Jim Rickards, a lawyer, investment banker and adviser on capital markets to the Director of National Intelligence and the Office of the Secretary of Defense, participated in a secret war game sponsored by the Pentagon at the Applied Physics Laboratory (APL). The game’s objective was to simulate and explore the potential outcomes and effects of a global financial war. At the end of the war game, the Pentagon concluded that the U.S. dollar was at extreme risk of devaluation and collapse in the near term, triggered either by a default of the U.S. Treasury and the dumping of bonds by foreign investors or by hyperinflation by the private Federal Reserve.
These revelations, later exposed by Rickards, were interesting not because they were “new” or “shocking.” Rather, they were interesting because many of us in the field of alternative economics had ALREADY predicted the same outcome for the American financial system years before the APL decided to entertain the notion. At least, that is what the public record indicates.
The idea that our government has indeed run economic collapse scenarios, found the United States in mortal danger, and done absolutely nothing to fix the problem is bad enough. I have my doubts, however, that the Pentagon or partnered private think tanks like the RAND Corporation did not run scenarios on dollar collapse long before 2009. In fact, I believe there is much evidence to suggest that the military industrial complex has not only been aware of the fiscal weaknesses of the U.S. system for decades, but they have also been actively engaged in exploiting those weaknesses in order to manipulate the American public with fears of cultural catastrophe.
History teaches us that most economic crisis events are followed or preceded immediately by international or domestic conflict. War is the looming shadow behind nearly all fiscal disasters. I suspect that numerous corporate think tanks and the Department Of Defense are perfectly aware of this relationship and have war gamed such events as well. Internal strife and civil war are often natural side effects of economic despair within any population.
Has a second civil war been “gamed” by our government? And are Americans being swindled into fighting and killing each other while the banksters who created the mess observe at their leisure, waiting until the dust settles to return to the scene and collect their prize? Here are some examples of how both sides of the false left/right paradigm are being goaded into turning on each other.
Conservatives: Taunting The Resting Lion
Conservatives, especially Constitutional conservatives, are the warrior class of American society. The average conservative is far more likely to own a firearm, have extensive tactical training with that firearm, have military experience and have less psychological fear of conflict; and he is more apt to take independent physical action in the face of an immediate threat. Constitutional conservatives are also more likely to fight based on principal and heritage, rather than personal gain, and less likely to get wrapped up in the madness of mob activity.
What’s the greatest weakness of conservatives? It’s their tendency to entertain leadership by men who claim exceptional warrior status, even if those men are not necessarily honorable.
Constitutional conservatives are the most substantial existing threat to the establishment hierarchy because, unlike dissenting groups of the past, we know exactly who the guiding hand is behind economic and social calamity. In response, the overall conservative culture has come under relentless attack by the establishment using the Administration of Barack Obama as a middleman. The goal, I believe, is to misdirect conservative rage toward the Democratic left and away from the elites. The actions of the White House have become so absurd and so openly hostile as of late that I can only surmise that this is a deliberate strategy to lure conservatives into ill-conceived retaliation against a puppet government, rather than the men behind the curtain.
Department of Defense propaganda briefings with military personnel have been exposed. These briefings train current serving soldiers to view Tea Party conservatives and even Christian organizations as “dangerous extremists.” Reports from sources within Fort Hood andFort Shelby confirm this trend.
The DOD has denied some of the allegations or claimed that it has “corrected” the problem; however, Judicial Watch has obtained official training documents through a Freedom of Information Act request that affirm that extremist profiling is an integral part of these military briefings. The documents also cite none other than the Southern Poverty Law Center (SPLC) as a primary resource for the training classes. The SPLC is nothing more than an outsourced propaganda wing for the DHS that attacks Constitutional organizations and associates them with terrorist and racist groups on a regular basis. (Check pages 32-33.)
This indoctrination program has accelerated since January 2013, after Professor Arie Perliger, a member of a West Point think tank called Combating Terrorism Center (and according to the sparse biographical information available, a man with NO previous U.S. military experience), published and circulated a report called “Challengers From The Sidelines: Understanding America’s Violent Far Right” at West Point. The report classified “far right extremists” as “domestic enemies” who commonly “espouse strong convictions regarding the federal government , believing it to be corrupt and tyrannical, with a natural tendency to intrude on individuals’ civil and constitutional right.” The profile goes on to list supporting belief in “civil activism, individual freedoms, and self government” as the dastardly traits of evil extremists.
Soldiers have been told that associating with “far right extremist groups” could be used as grounds for court-martial. A general purge of associated symbolism has ensued, including new orders handed down to Navy SEALs that demand that operators remove the “Don’t Tread On Me” Navy Jack patch from their uniforms.
The indoctrination of the military also follows on the heels of a massive media campaign to demonize Constitutional conservatives who fought against Obamacare in the latest debt ceiling debate as “domestic enemies” and “terrorists.” I documented this in my recent article “Are Constitutional Conservatives Really the Boogeyman?”
Obama and his ilk have been caught red-handed in numerous conspiracies, including Fast and Furious, which shipped American arms through the Bureau of Alcohol, Tobacco, Firearms and Explosives into the hands of Mexican drug cartels. And how about the exposure of the IRS using its bureaucracy as a weapon to harass Tea Party organizations and activists? And what about Benghazi, Libya, the terrorist attack that Barack Obama and Hillary Clinton allowed to happen, if they didn’t directly order it to happen? And let’s not forget about the Edward Snowden revelations, which finally made Americans understand that mass surveillance of our population is a constant reality.
To add icing to the cake, a new book called Double Down, which chronicles the Obama campaign of 2012, quotes personal aides to the President who relate that Obama, a Nobel Peace Prize winner, when discussing his use of drone strikes, bragged that he was “really good at killing people.”
Now, my question is, why would the Obama Administration make so many “mistakes,” attack conservatives with such a lack of subtlety, and attempt to openly propagandize rank-and-file soldiers, many of whom identify with conservative values? Is it all just insane hubris, or is he serving his handlers by trying to purposely create a volatile response?
Liberals: Taking Away The Cookie Jar
Many on the so-called “left” are socially oriented and find solace in the functions of the group, rather than individualism. They seek safety in administration, centralization and government welfare. Wealth is frowned upon, while “redistribution” of wealth is cheered. They see government as necessary to the daily survival of the nation, and they work to expand Federal influence into all facets of life. Some liberals do this out of a desire to elevate the poverty-stricken and ensure certain educational standards. However, they tend to ignore the homogenizing effect this strategy has on society, making everyone equally destitute and equally stupid. Their faith in government subsidies also makes them vulnerable to funding cuts and reductions in entitlements. The left normally fights only when their standard of living and comfort to which they have grown accustomed plummets below a certain threshold, and mob methods are usually their fallback form of retaliation.
Austerity cuts, which the mainstream media calls the “sequester,” are beginning to take effect. But, they are being applied in areas that are clearly meant to create the most public anger. Reductions in welfare programs are also being implemented in a way that will certainly agitate average left-leaning citizens. The debt debate itself revolved around those who want the government to spend within its means versus those who want the government to spend even more on welfare programs no matter the consequence. The loss of subsidies is at bottom the greatest fear of the left.
A sudden and inexplicable shutdown of electronic benefit transfer cards (EBT cards or food stamps) occurred in more than 17 States while the debt debate just happened to be climaxing. This month, cuts to existing food stamp funds have taken effect, and food pantries across the country are scrambling against a sharp spike in demand.
Remember, about 50 million Americans are currently dependent on EBT welfare in order to feed themselves and their families. The response to the relatively short EBT shutdown last month was outright fury. Imagine the response in the event of a long-term shutdown, or if extraneous cuts were to occur? And where would that anger be directed? Since the entire debt debacle has been blamed on the Tea Party, I suspect conservatives will be the main target of welfare mobs.
The left, once just as opposed to government stimulus and banker bailouts as the right, is now unwittingly throwing its support behind infinite stimulus in order to cement the continued existence of precious Federal handouts. The issue of Obamacare has utterly blinded liberals to fiscal responsibility. Universal healthcare, perhaps the ultimate Federal handout, is a prize too titillating for them to ignore. Democrats will now go to incredible lengths to defend the Obama White House regardless of past crimes.
They are willing to ignore his offenses against the 4th Amendment and personal privacy. They are willing to look past his offenses against the 1st Amendment, including the Constitutional right to trial by jury for all Americans, and Obama’s secret war against the free speech of whistle-blowers. They are willing to shrug off his endless warmongering in the Mideast, his attempts to foment new war in Syria and Iran, and his support for predator drone strikes in sovereign nations causing severe civilian collateral damage. They are willing to forget Snowden, mass surveillance and executive assassination lists — all for Obamacare.
And the saddest thing of all? It is likely that Obamacare was never meant to be successful in the first place.
Does anyone really believe that the White House, with billions of dollars at its disposal, could not get a website off the ground if it really wanted to? Does anyone really believe that Obama would launch the crowning jewel of his Presidency without making certain that it was fully operational, unless this was part of a greater scheme? And how about his promise that pre-existing health care plans would not be destroyed by Obamacare mandates? Over 900,000 people in the state of California alone are about to lose their health care insurance due to the Affordable Healthcare Act. Why would Obama go back on such a vital pledge unless he WANTED to piss off constituents?
Already, liberal websites and forums across the blogosphere are abuzz with talk of sabotage of the Obamacare website by “the radical right” and the diabolical Koch Brothers (liberals had no idea who they were a year ago, but now, they the go to scapegoat for everything). Once again, conservatives are presented as the culprits behind all the left’s troubles.
As I have stated in the past, Obamacare is designed to fail. The government has no capacity to fund it, and never will. Its only conceivable purpose is to further divide the country and excite both sides of the false paradigm into attacking each other as the reason the system is failing, when both sides should be questioning whether the current system should exist at all.
As the situation stands today, at least 50 million welfare recipients and who knows how many others exist as a resource pool for the establishment to be used to wreak havoc on the rest of us. All they have to do is take away the cookie jar.
Who Would Win?
Who would prevail in a second American civil war? Tactically speaking, conservatives have the upper hand and are far better prepared. Food rioters wouldn’t last beyond three to six weeks as starvation takes its toll, and mindless mobs would not last long against seasoned riflemen. The military, though suffering purges by the White House, still contains numerous conservatives within its ranks. Outside influences, including NATO or the United Nations, are a possibility. There are numerous factors to consider. But I would point out that the most dangerous adversary Constitutional conservatives face is not the left, Obama, or a Federal government gone rogue. Rather, our greatest adversary is ourselves.
If lured into a left/right civil war, would most conservatives be able to see beyond the veil and recognize that the fight is not about Obama, or the Left, or tyrannical government alone? Could we be co-opted by devious influences disguised as friends and compatriots? Will we end up following neocon salesmen and military elites who materialize out of the woodwork at the last minute to “lead us to victory” while actually leading us towards globalization with a slightly different face?
If a civil conflict has been war gamed by the establishment, you can bet they have contingency plans regardless of which side attains the upper hand. In the end, if we do not make the fight about the bankers and globalists, the Federal Reserve, the International Monetary Fund, the Council On Foreign Relations, etc., then everyone loses. Who wins in a new American civil war? If we become blinded by the trespasses of a certain White House jester, only the globalists will win.
Source: Brandon Smith | Alt-Market
Paul Craig Roberts thinks the Fed has backed itself into corner. A rise in interest rates would strengthen the dollar, give the dollar new life as world reserve currency, and halt the movement into gold, but a rise in rates would collapse the bond and stock markets and reduce the value of derivatives on the banks’ balance sheets. I asked Dr. Roberts if the Fed would sacrifice the dollar in order to save the banks and what the effect would be on Washington’s power viv-a-vis the rest of the world. His answers to these three questions suggest that Washington’s days of financial hegemony and world leadership are numbered.
Mike Whitney: Is the US dollar at risk of losing its position as reserve currency? How would this loss affect US leadership and other countries?
Paul Craig Roberts: In a way the dollar has already lost its reserve currency status, but this development has not yet been officially realized; nor has it hit the currency markets. Consider that the BRICS (Brazil, Russia, India, China, and South Africa) have announced their intention to abandon the use of the US dollar for the settlement of trade imbalances between themselves, instead settling their accounts in their own currencies. (There is now a website, the BRICSPOST, that reports on the developing relations between the five large countries.) There are also reports that Australia and China and Japan and China are going to settle their trade accounts without recourse to the dollar.
Different explanations are given. The BRICS imply that they are tired of US financial hegemony and have concerns about the dollar’s stability in view of Washington’s excessive issuance of new debt and new money to finance it. China, Australia, and Japan have cited the avoidance of transaction fees associated with exchanging their currencies first into US dollars and then into the other currencies. They say it is a cost-saving step to reduce transaction costs. This may be diplomatic cover for discarding the US dollar.
The October 2013 US government partial shutdown and (exaggerated) debt default threat resulted in the unprecedented currency swap agreements between the Chinese central bank and the European central bank and between the Chinese central bank and the Bank of England. The reason given for these currency swaps was necessary precaution against dollar disruption. In other words, US instability was seen as a threat to the international payments system. The dollar’s role of reserve currency is not compatible with the view that precautions must be taken against the dollar’s possible failure or disruption. China’s call for “a de-Americanized world” is a clear sign of growing impatience with Washington’s irresponsibility.
To summarize, there has been a change in attitudes toward the US dollar and acceptance of US financial hegemony. As the October deficit and debt ceiling crisis has not been resolved, merely moved to January/February, 2014, a repeat of the October impasse would further erode confidence in the dollar.
Regardless, most countries have come to the conclusion that not only has the US abused the reserve currency role, but also the power of Washington to impose its will and to act outside of law stems from its financial hegemony and that this financial power is more difficult to resist than Washington’s military power.
As the world, including US allies, made clear by standing up to Washington and blocking Washington’s military attack on Syria, Washington’s days of unchallenged hegemony are over. From China, Russia, Europe, and South America voices are rising against Washington’s lawlessness and recklessness. This changed attitude toward the US will break up the system of dollar imperialism.
Mike Whitney: How is the Federal Reserve’s Quantitative Easing impacting the dollar and financial instruments?
Paul Craig Roberts: The Federal Reserve’s policy of creating large amounts of new money in order to support the balance sheets of “banks too big to fail” and to finance continuing large budget deficits is another factor undermining the dollar’s reserve currency role. The liquidity that the Federal Reserve has pumped into the financial system has created enormous bubbles in bond and stock markets. US bond prices are so high as to be incompatible with the Federal Reserve’s balance sheet and massive creation of new dollars.
Moreover, central banks and some investors have realized that the Federal Reserve is locked into the policy of supporting bond prices. If the Federal Reserve ceases to support bond prices, interest rates will rise, the prices of debt-related derivatives on the banks’ balance sheets will fall, and the stock and bond markets would collapse. Therefore, a tapering off of quantitative easing risks a financial panic.
On the other hand, continuing the policy of supporting bond prices further erodes confidence in the US dollar. Vast amounts of dollars and dollar-denominated financial instruments are held all over the world. Holders of dollars are watching the Federal Reserve dilute their holdings by creating 1,000 billion new dollars per year. The natural result of this experience is to lighten up on dollar holdings and to look for different ways in which to hold reserves.
The Federal Reserve can print money with which to purchase bonds, but it cannot print foreign currencies with which to purchase dollars. As concerns over the dollar rise, the dollar’s exchange value will fall as more dollars are sold in currency markets. As the US is import-dependent, this will translate into higher domestic prices. Rising inflation will further spook dollar holders.
According to recent reports, China and Japan have together reduced their holdings of US Treasuries by some $40 billion. This is not a large sum compared to the size of the market, but it is a change from continuing accumulation. In the past, Washington has been able to count on China and Japan recycling their trade surpluses with the US into US Treasury debt. If foreign willingness to acquire Treasury debt declines and the federal budget deficit does not, the Federal Reserve would have to increase quantitative easing, thus putting even more pressure on the dollar.
In other words, in order to avoid an immediate crisis, the Federal Reserve has to continue a policy that will produce a crisis down the road. It is either a financial crisis now or a dollar crisis later.
Eventually, the Federal Reserve’s hand will be forced. As the dollar’s exchange value declines, so will the value of dollar-denominated financial instruments regardless of how many bonds the Federal Reserve purchases.
Mike Whitney: How is China likely to respond to America’s changing economic position?
Paul Craig Roberts: When I met with Chinese policymakers in 2006, I advised them that there was a limit to how long they could rely on the US consumer market as jobs offshoring was destroying it. I pointed out that China’s large population provided policymakers with the potential for an enormous economy. They replied that the one-child policy, which had been necessary in early years to keep population from outrunning social infrastructure, was blocking the development of a domestic consumer economy. As peasant farmers no longer could rely on multiple children for old age insurance, they hoarded their earnings in order to provide for their old age. Chinese policymakers said that they intended to develop a social security system that would give the population confidence to spend more of their earnings. I do not know to what extent China has moved in this direction.
Since 2006 the Chinese government has let the yuan appreciate 25% or 33%, depending on the choice of base. The increase in the currency’s exchange value has not hurt exports or the economy. Moreover, the US no longer manufactures many of the items for which it is dependent on China, and other developing countries do not have the combination of the technology that US corporations have given to China and China’s large excess supply of labor. So it is unlikely that China faces any threat to its development except for US policies designed to cut China off from resources, such as the new US military focus on the Pacific announced by the Obama regime.
China’s large dollar holdings are the consequence of the technological prowess that China acquired from Western corporations offshoring jobs to China. What is important to China is the technology and business know-how, which they have now acquired. The paper wealth represented by dollar holdings is not the important factor.
China could destabilize the US dollar by converting its holdings into dollar currency and dumping the dollars into the exchange markets. The Federal Reserve would not be able to arrange currency swaps with other countries large enough to buy up the dumped dollars, and the dollar’s exchange value would fall. Such an action could be a Chinese response to military encirclement by Washington.
In the absence of a confrontation, the Chinese government is more likely to gradually convert its dollars into gold, other currencies and real assets such as oil and mineral deposits and food businesses.
Quantitative easing is rapidly increasing the supply of dollars, but as other countries move to other arrangements for settling their trade imbalances, the demand for dollars is not rising with the supply. Thus, the dollar’s price must fall. Whether the fall is slow over time or sudden due to an unanticipated Black Swan event remains to be seen.