The Rest of Da Iceberg?

The Next Financial Tsunami is Breaking Fannie Mae, Freddie Mac, US Mortgage Debt... and US Fed and US Dollar?

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!

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."

A really bad idea!

I get a lot of emails from various investment newsletters. I recently got one from Investment U that was written by Louis Basenese titled The End Of The Weak Dollar. In his article Louis had 10 reasons why the USD is headed higher, not lower like many people believe.

4. Warren Buffet, Jim Rogers and Bill Gross… Louis claims that these three legends can be wrong about the USD.
My Take: Duh. They aren’t gods. Just because they CAN be wrong doesn’t mean they ARE. Time will tell.

5. Pop Culture… Even in our pop culture there are now examples of people hating the dollar. Since pop culture hates the dollar, it must be near the end of its fall.
My Take: Just because pop culture is now paying attention to the falling dollar doesn’t mean it will now stop falling. The fundamentals will decide…

7. The Amero… Louis goes on to explain that the Amero is a really bad idea and will NEVER happen because the U.S. will never want to give up control over their macroeconomic situation - besides which, it is nothing but a conspiracy theory.
My Take: The Amero is a really bad idea (I agree!). But, since the U.S. is so much larger than Mexico and Canada combined in both population and economics, the U.S. wouldn’t relinquish control but instead gain control over both Canada and Mexico. The Euro was a different situation since no one country controls a majority, but if the Amero were to occur the U.S. would be the majority and therefore have more power than Canada and Mexico.
The resources that Canada offer would also help bring stability to the currency by taking into account all those assets in the ground (ie, the assets backing the promissory note (which fiat currencies are) would be strengthened). If (a big IF) the USD was to crash or fall significantly, do you not think the U.S. government would try and come out with a new Amero currency? It would be more stable and better compete with the Euro… that said, I think it is such a bad idea for resource rich Canada. We would be giving up control over our fortunes… and yes, we are a VERY rich country. Our oil reserves are now 2nd in the world (and still climbing as we discover more!) and we have plenty of farm land and other natural resources contained within our vast borders. We are currently in SURPLUS territory for our government budgets and our economy is growing rapidly (in the resource sectors - perhaps not the manufacturing sectors - but that is a problem with labour and competing with the wage slaves in China that aren’t paid well.). Let’s hope this Amero never happens and that it is just a stupid conspiracy theory (though I have my doubts about whether its just a theory and that it might be a plan for the future).

8. A Weak Dollar Helps Nobody… Louis says it helps nobody.
My Take: It helps somebody because there are two parties to every transaction and somebody will be the winner and somebody will be the loser.

Read the whole article at Nabloid.com

Vor dem Bust ist...

...nach dem Boom!

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!

Plan B in reserve

The U.S. dollar is at an all-time low, even when compared against the hapless Canadian loonie. Five years ago, a loonie was worth 60 cents. Today, it's worth $1.12 and climbing. Yesterday, WorldNetDaily reported that the Chinese are considering abandoning the U.S. dollar as their national reserve currency. WND quoted Craig Smith's assessment of the consequences of such a move by Beijing on our economy:

"If that were to happen, all bets are off, and we will be in a depression that makes 1929 look like child's play, or we will experience Weimar Republic inflation as the dollar makes extreme moves toward devaluations." [...] On Tuesday, the U.S. national debt topped $9 trillion for the first time in history, according to the U.S. Treasury Department's daily accounting of the national debt. Nine trillion dollars! The number is so staggeringly high that it exceeds our ability to comprehend it in monetary units.

Million, billion, trillion – in financial terms, for most of us, it means a lot of money, really a lot of money, but that is about as specific a picture as most ordinary people can grasp. [...] Over the past few years, there has been growing public concern about the emerging "Security and Prosperity Partnership" plan that some say is really a "deceptive roadmap" to a coming North American Union and a new, unified currency tentatively called the "amero."

The feds steadfastly deny such a plan exists, even as it opens the borders to Mexican truck traffic, widens the I-35 corridor from Mexico to Canada and, counterintuitively, refuses to tighten the borders with either Mexico or Canada, despite both logic and widespread public demand.

All of these things have brought me to believe that powerful forces outside of our government – like the shadowy international Money Trust members of the "Bilderberg Group" – made a decision to force the formation of the North American Union along with the amero. There decisions have been instituted in the past via the Trilateral Commission, which is the dba for the nefarious Conference on Foreign Relations. Destroying the American dollar could force the crisis that would force the creation of the North American Union. To quote the title of a book of the 1960s era, "None Dare Call It Conspiracy."

Source: WorldNetDaily, 8 Nov 2007

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)

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)