New Video: "Meet the Federal Fockers" (2008)

A new video featuring Ben Bernanke, Federal Reserve Chairman, and Jerry Nelson, Corporate Communications for the Federal Reserve with Gary Franchi, Managing Editor of Republic Magazine. Bernanke is questioned about the Amero and Nelson reveals some little known facts about the FED. Is it really a private bank? Is the Amero on the horizon? What were US Notes printed by John F. Kennedy? Is our money toxic? What happened to the gold in the Treasury? These questions and more are answered in this expose' about the Federal Reserve System, from the mouth of the Federal Reserve. Go to MeetTheFED.com and watch "Meet the Federal Fockers" aka

Meet the Federal Reserve - Toxic Cash 1/3

Part 2, Part 3

Things to google: North American Union, Amero, Lou Dobbs NAU, Creature from Jekyll Island, ... Kennedy Dollars, Liberty Dollars, Title 12 Sec. 411

Gold Good ol' days:

"In 1933 the U.S. Treasury had 20,000 metric tons of gold. The Federal Reserve sold the gold reserves to the US Treasury, purchased with 30,000 x $100,000 bills."

Dollar's GATA go!

GATA GOES TO WASHINGTON: HAS ANBODY SEEN OUR GOLD?
PUTTING IT ALL TOGETHER AND THE WAY FORWARD
By Adrian Douglas

I attended the GATA third International conference held in Washington, April 17-19, 2008. There was a very impressive, star-studded cast of presenters who made presentations on the conference theme from very varied perspectives. In reflecting on everything I had heard during the two days it suddenly occurred to me how all these different viewpoints and perspectives could be integrated in a single, all encompassing way forward for GATA, which I would like to share with you.

There were several presentations which categorically demonstrated the gold market, and many other markets, are manipulated by the Central banks, their governments and their agents. [...] Edwin Viera presented the perspective of gold as money versus paper currency from a Constitutional law point of view. He warned of the Establishment doing everything possible to continue to steal from its citizens through fiat currency creation by, among other things, introducing a substitute paper currency such as
the Amero, and forging political and monetary union with Mexico and Canada
when the death of the present US dollar appears certain. This grim prospect would mean that not only would the Constitution continue to be violated but the Declaration of Independence too! He warned that in a country where 90 million citizens are armed destitution through inflation will not be taken sitting down!

Read the whole article at MarketForceAnalysis.com (pdf file)

The best way to reach the endgame

In all probability, we will go with inflating our money supply. This simply means printing unbacked paper without gold or silver behind it. The result will be higher prices, and the money will become less valuable. The ultimate result will be that we will be in a worse condition.
Lenin declared that the best way to destroy the capitalist system is to debauch the currency. By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. He went on to say that the way to destroy the middle class was to grind them between the two millstones of inflation and taxation.
It would be my guess that the long-range plan of the elites is to create an economic crisis to replace the dollar with the "amero" so we might merge into the North American Union.
Being ignorant is no longer an option [because the endgame is near].

Andy Windham, Wagener, S.C.

Source: AugustaChronicle.com

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)

Requiem for the US Dollar

The Goldman Sachs plant as the new head of the Bank of Canada ensures the takeover of the Canadian banking system, the introduction of the newly inaugurated amero currency, and lost sovereignty for Canada . This is tragic. With a crippled US banking system, a faltering USEconomic system dependent upon housing, and a Mexican failed state in the making, my hopes for the viability of the amero currency are dim. This garbage regional currency is doomed from the start. Canada is a small economy with an absolutely gigantic treasure of natural resources. The relative size of the three economies bodes poorly for the amero. With 30 million population in Canada , 300 million in the Untied States, and 120 million in Mexico , Canada cannot pull the three-horse team running ahead of a bizarre stagecoach. Cheap Mexican labor, ample Canadian minerals & resources, even with a spiffy new network of corridor transportation lines, cannot comfortably mesh with US entities.

The lopsided imbalanced upside down corrupted mix of US elements, steered toward consumption not investment, large & powerful rather than efficient, directed by wrong priorities, dominated by corrupt Wall Street and aggressive military forces simply is bound to produce little on the positive, and much on the negative. This queer alliance will not stop gold or silver prices from rising to great heights. This queer alliance will not prevent the energy prices from rising either. The main policy behind the amero currency will be inflation, no different from the USDollar.

Source: The Market Oracle

Fed Rate Cut = US Currency Cancer

The USD hit a new all time low against the euro but has not breached the $1.40 yet. High yielding currencies, such as the AUD and NZD, were again in favour.

The dollar has fallen to a new all time low mark on the U.S. Dollar Index at 79.091. The notion that the U.S. dollar or U.S. treasuries or bonds are safe haven currencies or assets is likely to be seen as very erroneous in the coming months. Lowering interest rates will make the United States less attractive for overseas capital.

George Soros's investment partner, investment guru Jim Rogers told Bloomberg News that under Chairman Ben Bernanke, the Fed is helping Wall Street at the expense of everybody else. "If Bernanke starts running those printing presses even faster than he's doing already, yes we are going to have a serious recession," Rogers said. "The dollar's going to collapse. The bond market's going to collapse. There's going to be a lot of problems in the U.S."

Source: Gold Investments Market Update

---

Something has to give with the current and ongoing financial chaos. What entity do you think will be sacrificed?



1. The economy
2. The real estate market
3. Politicians
4. The Fed
5. The stock market
6. Hollywood
7. Britney Spears
8. The Buck

I vote nos. 3 and 4, but that’s not likely. What will the obvious answer mean to you in the long run? I guess we’re back to talking about the dollar once more. Do they allow visitors in hospice? Gold, silver, and real asset investments will reap the benefits of the ongoing dollar carnage. Next week, we’ll delve deeper into what the dollar woes actually mean to you and your family. [...] The dollar is due a bounce higher in the very short term. Those who successfully shorted it now have to buy it back to lock in profits. It should then resume its downfall.

by Dr. Russell McDougal, 19 Sep 07

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

US Dollar - the worst of major fiat currencies

"Kept economists throughout our once great land are singing the praises of an interest rate cut. They all have demanded a cut, now it’s a question of how much ¼% or ¾%? Perhaps even 2%. The noise is deafening or should we say disinformation. Now the question is will Mr. Bernanke’s elitist handlers allow him to stand pat on rates and buy the dollar more time?

If rates are lowered we can expect hyperinflation. A falling dollar and eventually the Japanese disease, which has been 16 years of deflation and depression. Were it not for virtually no interest rate, a rigged currency and a supplicant export market in America, Japan would have collapsed economically years ago. Japan tried every Keynesian nostrum. Everything failed and all they have left to show for it is unbelievable piles of debt. [...] Our dollar teeters on the edge of the abyss. Not only is it again challenging 80 on the dollar index, but also to add insult to injury, our manufacturers of breakfast foods rather than raise prices have reduced content and the size of the box to offset higher costs and inflation. If the fed lowers interest rates the manufactures may have to cut the size of the box in half. The dollar is the worst of major fiat currencies. Unfortunately the rest are little better. We begin our 4th week into the destruction of the debt bubble as credit continues to contract in spite of a $700 billion worldwide infusion of credit. [...] The second wave of the gold and silver bull market is about to unfold, as $850 is broken to the upside. Phase two will be achieved much more quickly to $2,300 to $2,500. For the next few years’ inflation will run rampant not only against the dollar but every other currency that inflates, which is most of them. This breakout in gold and silver will prove fortuitous at the best possible time due to climbing costs of production at gold and silver mines. The producers are telling us that and they will soon break out to new highs and the juniors and exploration companies will follow. The greed of the elitists, the Fed and Wall Street will show that the Fed has no mastery over the monetary system. Do not be left behind, buy gold and silver now." ~Bob Chapman, The International Forecaster

1kg Silver Coin "Year of the Pig"

Tumbling Taco-flavored Currency

As an important US holiday approaches (Labor Day), a reflection is in order of the extremely dangerous footing we find our nation in, and the predicament that a nation of laborers finds itself in. Workers find their situation extremely tenuous, especially in light of the corporate sell-out of the American worker in favor of Asians, aided by USGovt incentives and Wall Street cheers. Our workers became accustomed to the betrayal during the 1980 decade with the Pacific Rim powered by the Asian Tigers. Why cannot economists see that a decade of Vietnam War inflation, a Johnson-Kennedy Guns & Butter agenda, and USDollar benefit from high Volcker interest rates (leading to Plaza Accord to bring down the US$), resulted in a colossal cost to the US Middle Class and workers??? They took more blows with the 1990 NAFTA betrayal, as Mexican assembly plants cropped up across the border. The current Chinese and Indian outsource movement is yet another betrayal to the American worker. Outsource the job, enjoy the lower cost to the corporate profit margin, and send the US employees into the street, especially if they are near retirement with pensions.

Let us all celebrate Labor Day, marred by a skein of betrayals. What is needed is a national program to put Americans to work. Instead, we fight an endless winless war abroad, in support of private syndicates who profit heavily. How about a national mandate and high priority initiative to rebuild the US bridges, access roads to major cities, tunnels, railroads, sewer pipes, water pipes, natural gas pipes, crude oil pipes, airports, and port facilities? And yes, forbid Halliburton and other connected crooks to participate in any and all bidding? FDRoosevelt initiated numerous plans. Why not now? High speed trains are common in France, Germany, and Japan, soon to China. The US lags badly.

In fact, one can conclude that the US is morphing into a bizarre Third World nation with a powerful military and a banking system well equipped to abuse the power extended from printing unbacked money marked as the world reserve currency.

[...] The Mexican Peso tumbled in July, and has continued lower in August. The financial conditions behind their FOREX revenues from their energy account are being revealed. The MexPeso has fallen from 9.25 to the 9.0 level, well below its 50-day moving average, without recovery. As the USDollar falters against the euro currency, the MexPeso does also. So the MexPeso has faltered even worse relative to world currencies. European exports rise in price to Mexicans. Currency markets sense trouble. The Mexican economy suffers from a significant decline in cash transfers (remittances) from workers in the US sending money home to families. This was addressed in my work as evidence of lost home construction jobs. The volume of money involved in remittances exceeds the total foreign direct investment in Mexico, an alarming data point, so not a small sum. This cramps consumer spending and small business investment, and leads to wider poverty. Count that as another contagion from the US housing crisis, of course denied.

The situation in Mexico continues to deteriorate. As their nation falls further into outright chaos, three key questions arise: 1) What happens to the reliable supply of crude oil to the United States, even as Cantarell sees further decline? 2) What happens to the plans for implementation of the North American Alliance, the economic merger of the US, Canada, and Mexico? 3) What happens to foreign mining rights to Mexican properties, under possible threat of confiscation or hiked royalty demands? These are central questions addressed in the August Hat Trick Letter report.

Source: "US/Mex Failed System and Failed State" by Jim Willie

Making Things Worse for the US Currency

The world's largest financial organizations have already taken big hits – quietly, for the moment – but the collapse of the subprime sector really is hurting, and we are seeing things that just shouldn't happen in a well-ordered financial world.

Fund managers are not producing credible fund valuations; they have frozen values using old prices, and are forbidding the normal result, which is investors piling through the exits.

No-one can price mortgage-backed derivatives at the moment, and no-one really knows how the underwriters of credit default swaps are pricing the insurance time-bomb they're sitting on. These horrible investments are in many cases worth nothing, and in the case of credit-default swaps, less than nothing.

The current lull might prove an opportunity for the prospective gold buyer. Gold has not yet moved up; in fact, it has dipped a little as stretched investment funds have sold whatever they can to raise cash and reduce their margin calls.

Nor can any serious comment on the gathering storm fail to remark on the apparent "flight to quality" which on Monday last week saw US Treasury bonds put in their strongest day since Black Monday 1987.

US Treasury bonds are part of the fast-growing and utterly irredeemable $9 trillion public debt now outstanding in the United States. The US trade deficit was also on record-breaking form again last month. Only a few short weeks ago these dreadful statistics drove the US Dollar to record lows against a basket of major world currencies.

Only a lack of imagination would allow investors to think suddenly of the US Dollar as today's "quality" refuge. Any respite for the Dollar will surely be temporary; indeed, the bounce we saw during the sharpest stock-market losses so far may have simply been short-covering by Dollar bears (of which there are plenty) rather than fresh buying of “quality”.

Everything that has just happened in fact makes things worse for the US currency.

from "The Gathering Storm" by Paul Tustain

...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!