Meatheads on the Amero--The 4th Central Bank

Nowadays, even meatheads at T-Nation, the net's premier site for bodybuilding and strength information (and ultimate Biotest marketing machine:) are discussing the up-coming North American currency--excerpts from this Top 10 Forum Post:

"The American Central bank will disappear in the next decade or two."
-Jim Rogers, Mandarin-speaking international investor & Quantum Fund co-founder

The fed will disappear but it will be replaced with the North American Central Bank as a representative for the Amero. [...] It matters little what the currency is called. The fact is many if not most North and South American countries have a currency tied to the dollar already. Renaming and combining them will only have a solidifying effect that will make world government more possible. Economies cannot really be unified any more than they are insofar as everyone is already dependent on everyone else.

Trade is trade and it doesn't matter what mediums are used to facilitate it. Competition is still a preferred state, however, there is little point in having a unified currency that can be competed against. Maybe a North American Central Bank wouldn't be so be holden to US government pressure to print and spend money. Then again, if it was there would be the same problems of inflation. Ultimately, I believe a new currency will not change anything fundamental about the operation of government and the destruction of society.

Read the whole North American currency discussion

Bernanke - The Great Deceiver

How would you recognize the most evil "person" on Earth? According to many historical texts certain literature, you should look for a brilliant, enigmatic public figure, a Fuehrer, who has a positive influence on the world, transforms it... for a while. Basically, the last person you'd tap as Satan's human emissary, as Jesus' nemesis.

In Jesus freak eschatology, the Antichrist is a person or other entity that is the embodiment of evil and utterly opposed to truth...
or a "legal personality", usually used to flip n' fuck expandable human capital.



So if you watch the History Channel's 2-parter "The Antichrist" (2008)... watch between the lines. If there is an antichrist, look beyond Arnold and Dubya - the Antichrist is supposed to be a great speaker:) Charismatic? What did that nurse pastor say? - and try to find out 1) who's robbed your savings, 2) why they tax your salary, 3) how many letters are in the profitable legal name...

The Fed

Shout out to the great charismatic board of directors deceivers of the Federal Reserve. You rule!

P.S. In case you want to know why it's highly likely that we'll see yet another black Republican, i.e., neo-con in the White House, remember the keywords: Evengelists, [New Life Church], and arrogant Head-Fundi-in-Charge Faggard Haggard - The Holy Clown.

Beware of the Late Reserve Currency

You honestly think the Fed is wising up? They are not because they don't have to. Obviously there is a great risk to the stability of the US Dollar if that corporation "who" goes by the name of Federal Express Reserve continues to turn its back on the greenback and sacrifices it as the first choice by fucking around with rates to mask problems. Our rates are really only decided based on bullshit economic data that is contained in fishy reports -- they say one thing -- "Fight inflation ... protecting the value of the US currency" -- but do the exact opposite: Fight deflation by killing the buck ...

"I do believe the days of the US Dollar being the reserve currency of the world are coming to an end. However, that doesn’t mean that it should be thrown away (in favor of the Amero). Hopefully, we can see some of our American purchasing power return and at least a HINT of free markets. If not, there is always Canada!" ~ForexHound.com

The Fed is not about the common man, not about real value, and not about to fight inflation ... because their real enemy is DEFLATION... till the endgame? (After the endgame is before the endgame!)

Stockhouse members discussed some of the finer points of currency valuations. "Beware the Amero."

Interesting comments:

"I'll start with the obvious: USD is toast. I just hope that the Amero doesn't come to fruition. I would leave Canada in that case. [...] All money outside of gold and silver is valued by decree. They're FIAT currencies. Ultimately their worth, defined by confidence to hold your assets denominated in that currency, is backed up by the willingness and the capacity of the government to ensure re-payment upon demand, or upon agreed terms."

BTW, this chart illustrates real power perfectly. Any club that can get away with this ... shouldn't be fuck with -- funny when you hear fellow serfs or rappers talk about being untouchable. This is the mothership!

Acknowledge da D-Bomb

Derivatives or "weapons of mass financial destruction" as Warren Buffet called them and particularly credit derivatives are the elephants in the room that are not being acknowledged. Many have yet to realize that it is not subprime lending that has caused the massive and unprecedented losses suffered by major financial institutions; rather it is the high risk derivatives and "investment vehicles" that mortgages and many other forms of debt have been "securitized" or packaged into. [...] The U.S. Office of the Comptroller of the Currency recently released their Q3 Quarterly Derivatives Report. Incredibly one financial institution alone, J.P. Morgan, had a derivative book that increased from 80 Trillion at Q2 to $91.7 Trillion in notional at Q3 [this includes 7.77 Trillion worth of Credit Derivatives]. J.P. Morgan has done surpisingly well in recent months considering. $10 Trillion is nearly the size of the entire U.S. economy or value of all the goods and services traded in the U.S. on an annual basis.

Dave-dog Rockefeller - Man of the Century

The following article's written by Richard C. Cook, a former federal government analyst who was one of the key figures in the investigation of the space shuttle Challenger disaster.
He is author of the book - Challenger Revealed: An Insider's Account of How the Reagan Administration Caused the Greatest Tragedy of the Space Age -- Richard C. Cook's personal [patriotic] story of how he disrupted the cover-ups surrounding the Challenger disaster:

Let’s turn to the U.S. personage that conspiracy theorists most often mention as being at the epicenter of whatever elite plan is reputed to exist. This would be David Rockefeller, the 92-year-old multibillionaire godfather of the world’s financial elite.
The lengthy Wikipedia article on Rockefeller provides the following version of a celebrated statement he allegedly made in an opening speech at the Bilderberg conference in Baden-Baden, Germany, in June 1991:

"We are grateful to the Washington Post, the New York Times, Time magazine, and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during these years. But the world is now more sophisticated and prepared to march towards a world government which will never again know war, but only peace and prosperity for the whole of humanity. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in the past centuries."

[...] isn’t it a little strange that the means which have been selected to achieve "peace and prosperity for the whole of humanity" involve so much violence, deception, oppression, exploitation, graft, and theft?

In fact it looks to me as though "our plan for the world" is one that is based on genocide, world war, police control of populations, and seizure of the world’s resources by the financial elite and their puppet politicians and military forces.

In particular, could there be a better way to accomplish all this than what appears to be a concentrated plan to remove from people everywhere in the world the ability to raise their own food? After all, genocide by starvation may be slow, but it is very effective. Especially when it can be blamed on "market forces."

And can it be that the "us" which is doing all these things, including the great David Rockefeller himself, are just criminals who have somehow taken over the seats of power? If so, they are criminals who have done everything they can to watch their backs and cover their tracks, including a chokehold over the educational system and the monopolistic mainstream media.

One thing is certain: The voters of America have never knowingly agreed to any of this.

Top 5 Mises Quotes

1. "Used to the conditions of a capitalistic environment, the average American takes it for granted that every year business makes something new and better accessible to him. Looking backward upon the years of his own life, he realizes that many implements that were totally unknown in the days of his youth and many others which at that time could be enjoyed only by a small minority are now standard equipment of almost every household. He is fully confident that this trend will prevail also in the future. He simply calls it the American way of life and does not give serious thought to the question of what made this continuous improvement in the supply of material goods possible."

2. "Full government control of all activities of the individual is virtually the goal of both national parties."

3. "The meaning of economic freedom is this: that the individual is in a position to choose the way in which he wants to integrate himself into the totality of society."

4. The first condition for the establishment of perpetual peace is the general adoption of the principles of laissez-faire capitalism.

5. "Not mythical 'material forces', but reason and ideas determine the course of human affairs. What is needed to stop the trend towards socialism [i.e., social capitalism] and despotism is common sense and moral courage."



P.S. It is important to note that the Austrian theory does not imply, as some have interpreted it, that we are witnessing the results of "overinvestment." Austrians do not contend that the Fed really has put more gas in our car! Since the Fed produces no capital goods, this obviously could not be the case. Rather, we suffer from malinvestment, as we have spent time and resources on projects that we cannot actually complete, and which we would not have undertaken if we had had an accurate reading on our gauge.

As Mises put it, " A further expansion of production is possible only if the amount of capital goods is increased by additional saving, i.e., by surpluses produced and not consumed. The characteristic mark of the credit-expansion boom is that such additional capital goods have not been made available." [...] The Fed, the pediatrician of our analogy, feels it can improve on this natural state. It doesn't alter any of the real inputs to this process, such as capital currently available or the willingness to save. Instead, it fidgets with the economy's "hormonal levels" by adjusting the interest rate. When it makes credit easy, the economy's apparent growth speeds up. In fact, what has occurred is that certain visible manifestations of growth have accelerated, while other, equally necessary but less visible growth processes have suffered as a result. Without the necessary "nutrients" being present, this sort of "growth" is built on a foundation of sand. The "bones" weaken and cannot support the body.

The central bank, fearing a collapse, then tries to reduce the rate of growth through tightening credit. This in no way undoes the damage done during the period of credit expansion, but, rather, adds a new set of distortions to those already present. Of course, once the central bank has engaged in credit expansion, it is foolish to blame it for reining in the boom. The only alternative is eventual economic collapse in what Mises called "the crack-up boom," or hyperinflation and the breakdown of the exchange economy. (Source: Mises.org)

Merry Fiat Christmas!

Rage against the central banking machine

Total Fed Credit was up last week by $3.8 billion, which seems like a lot of money to us proletariat working trash, but it is mere chump change to the American banking system, which can literally compound that money to infinity at their whim, thanks to the magic of insane levels of fractional-reserve banking and zero required reserves against new deposits or loans. In short, the banks are corrupt scum, just like always, and that is why history shows that all financial crises are always caused by the banks. [...] It is certainly NOT the business of government to "make sure that people who have more money help the people who have less money", but to make sure that people are given a fair shake by hewing strictly to the Constitution, and not being made poor in the first place by the damned stinking Federal Reserve allowing the banks to create excess money and credit, and thus creating the inflation in prices that make the poor poor!

~The Mogambo Guru (TMG)

The scariest Halloween costume

The story of Halloween goes back over 2000 years to the ancient Celts. Druidic priests regarded October 31st as the end of the year. Not only was it their day for celebrating the year’s harvest, but also a festival for honoring the dead. In order to appease the wandering spirits that they believed roamed at night, the Celtic priests made fires in which they burned sacrifices, made charms, and cast spells.
As they danced around the fires, the season of the sun passed and the season of darkness would begin. As Halloween 2007 approaches, traders in the global money markets are betting that Federal Reserve chief Ben “B-52” Bernanke will sacrifice the US dollar with another rate cut, in order to cast a magic spell over Wall Street.
But if “B-52” Ben delivers another big-bang, a half-point rate cut to 4.25%, it might unleash a cadre of evil spirits, ghosts, and demons that would haunt the US dollar to its graveyard.

~Gary Dorsch, Global Money Trends

Almighty Chaos

Something has snapped in the spirit of the time; events have gone beyond human capacity to control, predict or even conceptualize. Those who insist they know what is happening are merely pretending, or dissembling. When novelty arises, when old structures disintegrate before new patterns reveal themselves, there are no experts.

Perhaps the best oracles we can consult are systems analysts like Erwin Laszlo. Laszlo studies chaos theory and believes global civilization is a few years away from what he calls “the chaos point.” According to Laszlo, we are at a “crucial decision-window” of instability. “When we reach the point of chaos,” Laszlo tells us, “the stable ‘point’ and ‘periodic’ attractors of our systems will be joined by ‘chaotic’ or ‘strange’ attractors.” These “strange attractors” will propel us, like booster rockets, to evolutionary development or entropic debauch. In other words, we should prepare ourselves for the unknown and inexplicable.

The current economic crisis provides an intriguing case in point. [...] It seems inconceivable that the financial institutions and speculators didn’t anticipate large-scale defaults. Perhaps they were counting on the Federal Reserve to bail them out. During the last months, in fact, the Fed, along with its European counterpart, has poured hundreds of billions of newly invented dollars into the financial markets, temporarily stabilizing the system and rewarding the speculators while doing nothing for the masses of people facing eviction from their homes and creating the prospect of hyperinflation.

The Fed, a private institution, “injects liquidity,” quips the New York Times, without needle or syringe. As a Lehman Brothers economist notes, “All they do is write down a number and credit that amount of cash to the bank. It’s a bookkeeping entry.” The Fed’s miraculous capacity to create instant cash brings up deeper questions about the nature of money today — what is it? De-linked from the gold standard, money is based on little more than our collective belief in it.

In Third World countries, currency crises — often brought about by predatory speculation — frequently lead to frozen bank accounts and long breadlines, followed by a change of currency that creates immense profit for the banks and the government. Of course, many believe that such a thing could never happen here. Recently, there have been rumors of a plan to form an American version of the European Federation, uniting Mexico, the U.S. and Canada under a new currency, the “Amero,” and a new constitution, devised by the bankers.

Source: Common Ground Mag

The Austrian Endgegner

Impossible predictions aside, it seems fair to say the US dollar will be a mere shadow of its former self by 2014 (if recognizable at all in its new form). If we aren't on some kind of pure gold standard by that time (an extremely tough logistical nut to crack), we could be on some type of digitized commodity standard instead, under which the currency units in one's bank account are tied to an intrinsic-value basket. One resourcebuck = a fixed allocation of 30% precious metals, 30% base metals, 20% energy, and 20% timberland. Or something to that effect.

Whatever happens, it's important to keep hold of the fact that the world does change. Many things will stay the same, but others will look quite different... including global monetary policy.

The Austrian Endgame

Returning now to the recent past (mid August actually), your Macro Musings editor still has a sore fist from pounding the table for gold stocks. Specifically we said the following:

We feel gold stocks could put in a triple or quadruple from current levels -- over the course of months to years -- and it isn't clear when the move will begin in earnest. Given that it could be sooner rather than later, we think it's time to buy.

The timing was indeed "sooner." Gold stocks took off like a rocket within a few weeks of that call... the price of gold itself adding a none-too-shabby $50 per ounce or so.

Patting one's self on the back makes for a sprained shoulder, so we'll say little more there. It just seems prudent to add, in this discussion of golden milestones, that we are no johnny-come-lately to the bullish gold argument.

Events of the past few years have played out in classic fashion, just as the Austrian Endgame (a personal term) predicted. Here we quote from an explanatory note to readers, penned by yours truly, back in August 2005:

The [Austrian Endgame] is rooted in a basic observation of Austrian economics, articulated by Ludwig von Mises:

"There is no means of avoiding the final collapse of a boom expansion brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

Here is how it works:

1. In attempting to stave off recession or depression, the powers that be induce a credit boom through monetary stimulus.

2. The following boom is enjoyed at the cost of a massive debt buildup.

3. Excesses of the credit boom eventually lead to inflationary pressures.

4. The powers that be find their hands tied; they cannot kill rising inflation without killing the debt-laden economy at the same time.

5. The Fed's choice thus becomes take real steps to reign in inflation and destroy the economy, or let inflation run and eventually destroy the currency.

Anchors away

We are now heading into the thick of stage five. The sharpest evidence for this is gold above $700 (on the way to new all-time highs), the dollar at fifteen year lows (bye-bye long term support), and loud clamoring for a Fed rate cut from nearly all parties, even as the greenback is getting pitched headfirst down a well. (There is plenty more evidence too of course. Those are merely the most visible symptoms.)

~by Justice Litle (Consilient Investor)

Dollar breakdown would probably not concern the Fed...

"As far as we can tell, the current gold rally is being driven primarily by fears that the debt crisis will lead to a breakdown in the Dollar Index and secondarily by the contraction of liquidity. And unlike surging inflation fears, a breakdown in the Dollar Index would probably not concern the Fed at this time. We therefore don't see the Fed as the main threat to the gold market's short-term upside prospects. The main threat is that the Dollar Index fails to do what just about everyone is expecting it to do and, instead, begins to trend upward."

~Steve Saville, The Speculative Investor

"But what of the U.S. dollar? After all, once the printing presses fire up to full speed, and the Fed Funds rate begins to ratchet steadily downward, won’t the Chinese and other non-U.S. holders of our 6 trillion dollars show their displeasure by ridding themselves of the things, driving the dollar down even further? Surely that can’t be allowed. Can it? In a call with long-time friend Clyde Harrison, one of the most seasoned and sharpest players on the commodities scene (he invented the Rogers International Commodities Index Fund), he quipped to the effect of, "We’re in an election cycle and the foreign holders of U.S. dollars don’t vote. By contrast, the U.S. voting public is up to its neck in debt. When push comes to shove, the dollar will be sacrificed. [...] And central banks? Won’t they try to keep gold down on the farm? After all, if it starts to take off, as we continue to feel is inevitable, won’t that risk expose the fact that the emperor’s clothes are made of paper that fall to pieces in the first moderately heavy rain? Yes. And so we will expect to see more announcements of central bank sales. But the impact this trick has on the price of gold will be diluted with each new announcement. In time, announcements of further sales will be met with cries of legitimate outrage by citizens concerned their central bankers are trading away their only tangible holdings. The dollar is headed toward the sacrificial altar, with a knife made of gold. Sooner or later, the central bankers will have to throw in the towel and just let gold run. These are not ordinary times and the outcome likely won’t be ordinary either." ~The Internationl Speculator, 9/11 2007

...to be eliminated

"The only real reason for gold to go higher is if investors feel that it will hold its value better than other forms of money. For instance, if you lived in Zimbabwe today and were offered an ounce of gold or a brown paper bag of rapidly depreciating Zimbabwean dollars, what would you take? (Hint: take the gold; inflation in Zimbabwe is so bad that a roll of toilet paper now costs over $200,000.)
But the world doesn’t trade off the back of the Zimbabwean currency unit. That honor belongs to the U.S. dollar which, as you are no doubt aware, has evolved into the de facto reserve asset of virtually every central bank in the world today.
That the unbacked currency of one country is now the core holding of all the countries in the world is unprecedented in the history of the world.



[...] Monster chickens, the product of decades of proliferate spending, will eventually come home to roost on a shaky house of cards. The monetary crisis that will follow will eliminate the U.S. dollar as a serious competitor to gold… the only asset that has withstood the test of time as money. And we are not talking decades, but millennia." ~David Galland

Read the whole article: "Lessons from History: The Simple Path to Resource Riches" and say NO to U.S. Dollars and YES to real value, i.e., the gold and silver currency!

"It shames the stench of rancid meat"

At this point in time, one has to consider the efforts of good, decent Americans over the past 90 some years regarding the income tax and where we are today with the inescapable fact that (1) the dollar may not survive; (2) foreign countries own our debt and don't want any more; (3) Congress and Bush are not going to stop what's coming when that first wave of baby boomers begin retiring next year; (4) Congress will do nothing about the IRS because they need it or an alternative scheme; (5) the courts are so rotten and corrupt, only a miracle will save you anymore on an IRS case and the big one (6) the North American Union/SPP and a push for something called the Amero. Let me add the ten ton elephant which is going to break the back of this government and economy: the incalculable price tag of our aging population and medical care. I've written about these issues before while Congress simply continues ignores this ten ton elephant standing in the middle of the room. At some point, the IRS becomes useless because there isn't enough money in the universe to pay these debts. At some point printing up even more worthless Federal Reserve "Notes" will also run its course to stave off the inevitable.

"Taxation follows public debt, and in its train wretchedness and oppression." ~Thomas Jefferson to Samuel Kerchival, Monticello, 1816

(Source:"THE IRS, AMERO AND THE BATTLEGROUND FOR LIBERTY" by Devvy Kid)