8 Jan

The FED and Indentured Citizens

                                       

The Fed disguised

In 1913 Congress abdicated its Constitutional responsibility over currency on behalf of the people when it created the monster called The Federal Reserve System. In creating a private joint stock entity, Congress not only surrendered jurisdiction over the dollar, it also relinquished control, oversight, and authority over the institution intended to manage the citizens’ currency. Decisions hastily made in environments of illiteracy, panic, and fear, and driven by energies with ulterior motives, rarely turn out well for those who succumb.

Section 2A of The Fed’s Monetary Policy Objectives states, “The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”  This ill-defined and loose agglomeration of feel-good nonsense might have tasted better if someone had appended “and preserve motherhood and apple pie,”  but such addition would not have improved it.  When we consider such additional elements as the fact that, as originally established, the notes issued by The Fed were obligations of the U.S. Treasury (read taxpayer) rather than that of the member banks, well, what could go wrong?

The Fed’s ‘objectives’ reads as if it was written by The Fed so that no repercussions could possibly result from its own failures. Well beyond the bounds of sanity and far from purview of effective diligence, an isolated institution was formed and exists to command and supervise the currency of the most powerful Nation on Earth. This authority reports to no one. It plays footsies with Congress and with the Administration, but it acts in its own best self interest, as all human endeavors are wont to do. As some of us strongly suspected just prior to the last Presidential election, and as we can now with hindsight confirm, Bernanke and The Fed used their capacity to print dollars in an undisguised effort to support the re-election of pro-Bernanke-pro-Fed-pro-free-money Barack Obama.  There is no question that the most powerful financial institution on Earth has strayed well beyond any of the intentions which created it, regardless  how unenlightened they might have been.

If America was a company and you were its CEO, would the above noted Section 2A provide sufficiently focused objectives for your currency? Not if you were capable of simultaneously walking and chewing gum it wouldn’t. Monetary policy should have One objective – Stability. Simple, clear, unambiguous, stability. And inflation? 0%. Not 1.0% or 4.5%, but zero.

Who should be in control? The people. Who represents the people?  Congress. Who is in control? A small group of individuals running a small group of too-big-to-screw-up international banks. No-one could possibly mount an intellectual or intuitive argument supporting the assumption that such individuals, their desires and the desires of the institutions under their charge, hold dear the altruistic benevolence of their “fellow human beings.” I cannot say “their fellow Americans” since some of the “owners” of The Fed are not American institutions. Go figure.

Still, is this any way to run a railroad?  Not if we look at the state we are in. Not if we critically assess the reality which has been created over a long process of fiscal mismanagement. Not if we understand that unprincipled individuals have too long politicized the dollar, which was easily done once it was unhooked from the hard commodity, gold. Not if we critically appraise the devastation which The Fed has rendered on a Nation with the complicit approval of self-servers in Washington.

Politicians of the Congressional and White House variety have evidently been more than enthusiastic in allowing inflation and devaluation of the dollar to proceed apace since the de-coupling of the dollar.  The banks behind The Fed controlled the game and were only too eager to comply (as in, OK fine, we’ll go along with it but it’s your idea). There were hundreds of billions to be made through debt guaranteed by taxpayers.  There were new illiterate and willing generations to be converted to serfdom with the help of standard wavers such as the New York Times. A bigger chicken in every pot and a larger roof over every head, all acquired through debt.  The bigger the debt, the greater The Fed’s profits.  And what of the savers? . . . Completely destroyed and pushed toward risky investments.

The dollar has not been stable and in fact has moved in direct opposition to the best interests of all Americans. It has steadily lost value over the long term. For example, when we are provided obfuscating rationales for the high price of oil (up 400% in a decade), we are being lied to. The truth along the vector of veracity is much closer to the reality that the dollar is dropping in value, however such realization might instill doubt of our long term trends toward prosperity.

It has been in the best interest of the banks which own The Fed and all member banks, to manipulate interest rates to their advantage. The trends of the dollar (read: your earning power) through the past half century against hard assets such as gold or oil tell a tale of unrelenting plundering and evidences the failure of misguided interventionism. Nevertheless, the worst consequence has been an acceptance of indebtedness. Indebtedness has contaminated all human enterprise. From personal debt, to corporate debt, to State debt, to National debt, the burden overwhelms current and future intents to repay. Total debt floats somewhere well North of $100 trillion.

In a country where the term “Freedom” has resonated profoundly from its very inception, and throughout its history, the citizens of The United States of America now find themselves subservient to a foreign entity they have no control over.  Without economic freedom, freedom is simply an ephemeral concept promoted and repeated as a feel-good mantra mesmerizing the population.  Awaking to overwhelming indebtedness is tantamount to waking up to enslavement.

As we wait for the moment when it becomes widely evident that The Fed has become completely ineffective and we are forced to confront the unavoidable crisis of debt yields rising significantly, some alternatives should and must be considered.

The ubiquitous nature of today’s technologies, software, computers, phones, and networks, present us with possibilities which brilliant economic minds of the past could not dream of, and too many current ones refuse to.  We should no longer regard the current monetary system as the sacred and hallowed domain of a few bankers. Congress should immediately mount a full frontal attack on The Fed and retrieve the control it long ago held.  Once Congress has recuperated full jurisdiction and authority over the Nation’s currency, it should then enact laws allowing for the formation of competing bank notes including digital currency to be issued by private entities in an open and fee market. But first, let’s get back mastery over that most critical instrument so pervasive in all human activity – our currency.  America should not be the only developed country in the world without sovereignty over its currency.

 

About James Raider

A constituent of the vast baby boomer generation with a career which has been fortunate to know the ponderous corporate worlds, as well as the intimately pressurized, and invigorating entrepreneurial domains of high tech and venture capital, I have harvested my share of mistakes meandering through corridors of enterprise from Silicon Valley, to London and endless, colourful, sometimes praetorian points in between. The voyage has provided an abundance of fodder for a pen yielding to an inquisitive keyboard, a foraging mind, and a passionate spirit. Whether political or business or social or economic or personal, is it not all political? It is a privilege to write, and an even greater privilege to be read by anyone, and sometimes with the wind at my back the writing may occasionally be legible. I do not write to invite scorn, nor to invite respect, but if I get really lucky the writing can stimulate thinking. I also write for the very selfish purpose of animating my own processes, and engaging the best of what life offers. Above all, whether biting fire or swatting shadows, I am grateful to be gifted the freedom to write and publish whatever flows down to the keyboard. To all those who enabled this freedom, and to all those standing guard to preserve it, I am indebted.
This entry was posted in Congress, Economy and tagged , , , . Bookmark the permalink. Tuesday, January 8th, 2013 at 5:49 pm
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33 Responses to The FED and Indentured Citizens

  1. Pingback: The FED and Indentured Citizens - US Message Board - Political Discussion Forum

  2. johngalt says: 1

    It is somewhat astonishing that a large portion of We, the People, take all of this financial stuff for granted. Either through ignorance, or wrongly placed optimism, we, as a whole, ignore this at our own peril.

    Putting aside, for a moment, the political argument on the size of government, everyone ought to be concerned about the debt our federal government is racking up, for instance. Regardless of who one believes brought the government to this position, adding debt at unprecedented rates shouldn’t be something anyone believes is a sustainable course of action.

    Much of that debt is held by the Federal Reserve. Much more now than in the past, due to the rounds of QE Bernanke issued. In applying the three rounds of QE over the past four years, the idea was to get money moving through the economy again, and to help keep interest rates low. This is done by the Fed buying up various amounts of bad debt from the banking industry, as well as bonds and other financial assets from the various banks. Then, the Federal government basically takes control over the bad debt that the Fed bought up, and prints dollars that are handed over to the Fed for them to lend to it’s member banking institutions. Not all of the debt or bonds the Fed buys are taken over by the federal government. To date, the three rounds of QE have resulted in a total of around $2 Trillion injected into the economy, with around $1.25 Trillion being newly minted dollars from the Treasury dept. This is what ate up much of the margin between actual debt held by the federal government and the debt ceiling authorized by Congress.

    So, where did all of that money go? The fed issued large amounts of cash to the various banks, at low interest rates, to provide incentive for lending. But most of that “cash” is still sitting in those banks, not issued in any form, be it lines of credit, mortgages, car loans, etc. partly because the lending practices of the banks tightened up dramatically since 2008, and partly because many people are not in the market for increasing their own, personal debt. Much of that $2 Trillion has never made it into the hands of consumers, be they private individuals, such as you and me, or businesses looking for capital. In effect, the QE program has been a failure, and because of that, the Fed itself is in a bad position, the banks are in bad positions, and the only way out is to increase interest rates to cover their obligations, which does the exact opposite of one of the purposes of QE.

    Meanwhile, the Federal government continues to spend money like they are flush with cash, and there is no tomorrow. If they keep going, there very well might not be a tomorrow. So, more idiots bring in the idea of issuing a $1 Trillion coin, and depositing it with the Federal Reserve, drawing on the account holding that coin to pay for the excesses the federal government is reveling in.

    Are the people, in general, really stupid enough to believe that everything is going to be ok? Our dollar is losing strength compared to other world currencies, and it’s only going to get worse, in my opinion.

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  3. james raider says: 2

    @johngalt:
    Obama told Boehner that he would not reduce spending increases. This is, IMHO, exactly what Bernanke and his bosses want. The free money being provided to his associates allows for easy profits. You too could make billions if your cost of money was 0% on an endless supply. All you’d need next would be borrowers who believe that ‘all is good’ and good times will continue – what problem, we don’t see no problem, keep borrowing. The mantra works, but it does not quite work as well as it use to work.

    Plus, none of this money is finding its way into entrepreneurial hands, unless the individuals have plenty of collateral to place against the loans.

    Neither side, Reps or Dems as you know, is proposing actual cuts in spending. They are disputing levels of reductions on spending increases.

    There is no question, no doubt, as to where this will end. We’re only discussing or debating the ‘when’.

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  4. johngalt says: 3

    @james raider:

    It’s like the fable about the grasshopper and the ants, except, in this case, there are millions of grasshoppers that believe nothing bad will happen, because it hasn’t happened yet. Of course, those same millions of grasshoppers are ignorant when it comes to history. And, they believe that they can take by force what the ants are putting away and saving for when the lean times come.

    There are a lot of people that I think just don’t “get it”, when it comes to how unsustainable the current economic trajectory of our government and the economy actually is. Greece had somewhat of a safety net to fall back on. The United States has no one.

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  5. Skook says: 4

    @james raider: Fantastic, this is a complicated subject, but you have explained it in a manner even I can understand. Please enlighten us further in the future.

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  6. James Raider says: 5

    @Skook: #4,
    You’re too kind. You’re right about it being complex given the sheer size of the monster that we call ‘currency’ – from the bankers who control it, to the politicians who pander to influence it for self-serving purposes, to the poor saps who have been led to believe that debt is a positive force which they deserve to use – it’s a complex mess.

    Debt if used judiciously and wisely by the borrower, can be positive. Unfortunately, this is not the influence which has guided or informed a majority of the trillions in debt which banks and governments have foisted on the unsuspecting public, nor the borrowing which the public has undertaken.

    The Fed’s decisions impact every corner of our world including every other central bank, and repercussions influence the price of the food we feed our children and the cost of the vehicles in which we drive them to school. What our kids don’t yet know is that we, in the aggregate, have allowed our governments to borrow at abandon, and we have personally incurred debts we are incapable of repaying.

    While we were busy working to support our families, we watched with some degree of apathy as history’s greatest ponzy scheme was erected on our backs led by The Fed and Washington. With government’s spending at 40% of GDP, no real government spending cutbacks in sight, and Bernanke’s seat well protected by Obama, there is no chance that any meaningful economic strategy will find daylight.

    Sadly I find myself getting whiffs of a peculiar scent – one called “every man for himself.”

    There is no captain on this ship.

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  7. Skook says: 6

    @James Raider: Can you explain, what you mean by this “every man for himself” it sounds ominus, especially coming from you.

    PS- I suppose you have read of the court recognizing Metis Rights and of the embarrassment of the Chief in Ottawa, during a hunger strike, when her boyfriend has now been found to have absconded with millions from a tribe pleading poverty. The news is exciting and embarrassing here in Canada.

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  8. oil guy from Alberta says: 7

    Hey Skook, this hunger strike should continue until all the bookkeeping is in order and the missing funds repaid. Looks like this hard done by chief would looking a little frail and thin by then. lol.

    ReplyReply
  9. james raider says: 8

    @Skook: #6,

    . . . this “every man for himself” it sounds ominus . . .

    You have a knack for asking the difficult questions, and as you know, there are no bad questions, just bad answers. I’ll at least attempt to not slide into the mundane.

    A thorough exploration of this particular concern probably deserves a whole book, nevertheless, a few thoughts out loud . . . .

    I’ve lived with a natural tendency toward the positive while attempting to maintain skepticism on the search for truth. Like the rest of us, I attempt to balance the cerebral with the intuitive, and with age I hope more of my intuitive self surfaces. There are realities which cannot be ignored and which override any wishes for favorable economic near term denouements of the mess we have allowed.

    What makes our current decade, IMHO, the decade which will see an international implosion of all things financial, undermining our social fibre, is that we have collectively fashioned a ‘perfect storm’ in which the confluence of elements are being aggravated by a general refusal to acknowledge hard truths. I’m not referring to what others have called perfect storms, although it is an apt metaphor, and it is becoming increasingly annoying to hear and read from our decayed media that “the can is being kicked down the road” when it is abundantly obvious that these self-indulgent pundits have no idea what that phrase means nor what they intend when they use it. The phrase has been tossed about to such a degree that in the ears of the population it has come to mean nothing but, oh well, politicians will be politicians. What we have today is debilitating paralysis with no one holding a compass and no one, right or wrong, leading implementation of any solutions.

    The force of the impact to which we will be subjected by this confluence of events will not only see those at the top of our food chain do what comes naturally (hunker down behind the metaphoric barricades), but everyone else will struggle to remain afloat, doing what also comes naturally. The true ‘mettle and spirit’ of every member of our society will be tested. . . . And there lies the potential nightmare.

    Leading up to this Perfect Storm and in fact providing it one of it fuels, has been the disgustingly divisive, even envy-engendering leadership which has been reelected to manage the Administrative branch. As for Congress, nothing of import or wise has ever been accomplished by a committee of more than a handful.

    Other powerful but disparate social, economic and political elements beyond those noted in the above article which I believe have contributed to what will shake our society’s foundations include:

    A degradation in quality of education and deteriorated emphasis on ‘getting’ an effective education;
    Reduced private allocation of capital investment in production facilities and reduced public investment infrastructure;
    Overabundance of financial firms presenting a profusion of financial vehicles and schemes few understand, but many invest in because interest rates are at zero on the funds they have allocated for rainy days and retirement;
    Over-dependence and over-reliance on financial firms and their unfettered domination, overhang and influence over all industrial sectors;
    Debt to GDP ratios beyond the economy’s ability to finance through growth;
    Ignored unfunded liabilities for healthcare as well as public and private pensions of baby boomers;
    Unremitting ignorance of the meaning of debt;
    Government spending and inefficiency which no one is prepared to reduce or even address;
    A plateauing on technological advancements and limited horizon on serious breakthroughs. Facebook, for example, although widely used, is not an earth-shaking breakthrough;
    Abuse of power by too many of the too big-to-fail corporations;
    Exploitation of power by monopolies in mature industries;
    The inability of all levels of government to lift the overwhelming bureaucratic burden which stifles too many industries and suffocates innovation by entrepreneurs;
    A total of eight years of an Administration unable to ‘listen’ to the needs of small to medium companies, other than filling the pockets of its financial contributors with taxpayer cash;
    The heads of the largest companies have in recent years focussed on growing international markets, while their own home base has deteriorated.

    The convergence of these and numerous other critical elements will instill levels of stress across the whole of the population, and as you know, desperate people do desperate things.

    Not everyone has access to a half acre on which to grow a few tomatoes and beans. We’re down to saving every nickel we can even if that nickel loses value in time. 2013 may be the year we truly understand the meaning of conspicuous consumption, and comprehend the difference between need and want.

    ReplyReply
  10. james raider says: 9

    @Skook:
    It appears every band’s chiefs and leaders have filled their pockets. I know of a few who have accumulated millions and all of it was through fraud and corruption.

    ReplyReply
  11. James Raider
    hi,
    your POST SHOULD BE READ IN ALL UNIVERSITYS aiming at real cold facts, to prepare
    the future economists to help them also to figure the minds of those
    present usurpaters out to enrich themselves by ruining this USA
    TO THE POINT OF NO RETURN ONCE THEY ARE READY TO LEAVE THE SEAT WITH THEIR GOONS,
    IT MAKE ME THINK OF MITT ROMNEY AS HE KNEW OF HIS LOSS, REFUSE TO GIVE ANY CONTEST
    BECAUSE OF WHAT HE SAW TO AWFUL TO FOLLOW UP, TO DANGEROUS TO DESERVE A CONTEST OF THE ELECTION RESULT COMING TO HIS FACE AS THE MOST DESTRUCTIVE EVENT IN THE USA HISTORY,
    MITT ROMNEY WITH THE SKILLS HE HAD AND ABILITY TO TAKE ON THE DISASTER FROM OBAMA AND MINIONS DECIDING TO NOT PUSH IT SHOULD HAVE RING A BELL OF DEATH TO WHAT AMERICA IS AT THIS POINT, RUN BY DANGEROUS ENTITY OUT TO DESTROY TOTALY A NATION OF TOLERANT PEOPLE WHERE HALF OF IT SAW IT COMING, BUT THE OTHER HALF WHERE LED BY THE MONEY FREELY COMING WITH THE PHONE AND HOUSING TO LURE THEM WITH ILLUSIONS OF WEALTH, BRILLANTLY MANIPULATED WITH MANY MONTHS OF CAMPAIGNS REPEATING THE MESSAGE OF VOTE FOR REVENGE, TELLING THEM THEY MUST VOTE FOR REPARING INJUSTICE DONE IN THE PAST WHICH HE KNEW
    WOULD WORK ON HALF OF AMERICA PLUS THE NEW COMERS LEGALS AND ILLEGALS
    MITT ROMNEY MUST HAVE SAID TO HIS FAMILY, WE MUST THINK OF OUR OWN AND IT WILL TAKE ALL MY TIME FOR
    EVERY MAN FOR HIMSELF IN THIS NOW AMERICA,
    AS IT WAS SAID ABOVE, SO TRUE

    ReplyReply
  12. @ilovebeeswarzone: #10,
    Thank you for your supportive note MsBees.

    I agree with you that Romney had the ability to dig for solutions to the economic disaster which faces us. In his favour, I also sensed that he was not an ideologue, as ideology is usually blinding. What he accomplished with the Olympics and in his State was evidence that he could bring disparate energies to the table to solve problems generally. I doubt that he could have or would have solved our economic problems or taken The Fed to the woodshed however. He might have made a dent, but we’ll never know.

    For now we find ourselves preoccupied by much less critical concerns which the Administration and the media have strewn on our path to divert our gaze. This misguided, unenlightened Administration is successfully preventing any restraint or deceleration of our charge toward financial collapse, which a little over 50% seem to have stipulated was their wish this past November.

    ReplyReply
  13. Nan G says: 12

    I was on a web site that was sharing a good thing about each state and came across the fact that in Fort Knox we have our country’s gold reserves.
    All $6 billion of them.
    That’s it.
    Just $6 billion in gold.

    In other countries, in the past, what has happened when an economy totally collapses?
    In Venezuela hyper-inflation led to an exodus of both idle rich and business-class people.
    We benefited as they came here and opened new businesses.
    In Germany hyperinflation led to the rise of a fascist government and also to the exodus of people who were considered to be ”the rich,” or even friends or family of ”the rich.”
    Where ever those rich Jewish Germans landed up they benefited their new homelands.

    Perhaps the USA is big enough to suffer a collapse while some of its internal portions land on their feet individually.
    Texas, Idaho, Wyoming, Montana, the Dakotas, Utah; all these might be able to withstand the financial collapse by keeping out those who would bring their rot in with them.

    If that is not the case then there are very few places to run to outside the USA.
    Where are people forced out by being ”the other” in their home country going right now?
    The USA, Canada, Australia, Israel.
    That’s it.

    ReplyReply
  14. @Nan G: #12,
    Physically, most people won’t ‘run’ en-mass to elsewhere off the Continent, however, there are endless places where cash can sit off-shore and as we know our largest corporations are letting trillions of dollars sit outside North America’s borders in havens. You know that if companies are doing it, so are individuals who can afford the fees of ‘haven’ lawyers and bankers.

    For a few years this was because of uncertainty. That uncertainty has now morphed into fear of instability. There are no signs that all of that cash is coming home any time soon.

    You are probably right about states such as Utah and Wyoming. Don’t know about Texas being able to withstand the multitude’s rush though.
    ——
    Many are convinced that gold has no value therefore why hold it. Notice that Congress not only has no idea of what The Fed is doing and how much it makes for its shareholders, but it also doesn’t seem to know if there is any gold in reserve. Guesses are as good as . . . . well, not as good as gold. :-)

    ReplyReply
  15. johngalt says: 14

    @Nan G:
    @james raider:

    There is an inherent problem with the belief that any particular state, or states, can withstand the economic collapse of the federal government.

    The dollar. Where it goes, the financial standing of any particular state goes. And the reason is because no state is allowed to coin it’s own money, but only allowed to pay it’s debts by US currency, or gold and silver coin. My guess is that no state in our union holds the assets, in gold and silver, to remain financially stable.

    If, however, a dissolution of the union occurs immediately, and a particular state can be adept enough to adapt quickly to the change, they might have a chance if they can provide a financially stable currency quickly enough that the rest of the world recognizes.

    The stability of the dollar is paramount to our economy, and the financial stability of the citizens within the various states. As the dollar goes, so go we.

    Individually, and in localized situations, if the dollar fails then barter and trade will become the “new” currency, which is why tangible goods, such as metals, bullets, seed, tools, clothing and cloth, etc., will be bought up first when the collapse happens. Eventually, that barter and trade may evolve into actual currency such as coins and paper, but at that point the people are going to be wary of any “money” that is questionable.

    ReplyReply
  16. Nan G
    HI,
    I BELIEVE TO HAVE READ ABOUT ONE STATE who have a lot of gold underneath,
    is that OKLAHOMA?
    I also read about that one who has the gold reserve, was thinking of making it a currency for them,
    am I RIGHT OR MISTAKING THIS.

    ReplyReply
  17. @johngalt: 14,

    . . . no state is allowed to coin it’s own money . . .

    You’re right, however, the size of the impact which will felt on our society down the road we are on will inevitably create paradigm shifts which we can only conjecture upon given the extremely blurred lenses we are restricted by.

    There are any number of possible outcomes, including national and/or state by state creation of competing currencies. I agree with your closing paragraph – none of which bodes well for most, and certainly not for those who have saved anything.

    ReplyReply
  18. johngalt

    you mention ; quickly enough that the rest of the world can recognize.
    I THINK, if a situation like that occur,
    why would the STATES BOTHER TO CARE THAT ” THE WORLD ACCEPT IT”
    IF THEY CAN PROVIDE A STABLE CURRENCY, IT START BY THEIR OWN CITIZENS TO ACCEPT THEIR OWN CURRENCY, THAT’S WHAT MATTER,
    THE FEDERAL ARE TOO MUCH IN BED WITH THE WORLD TO THE DETRIMENT OF THE AMERICANS
    THOSE WHO ARE THE PRIORITY BEFORE ANY OF THE WORLD,
    WHY DO THEY PUT A PORK BILL FOR BUILDING A HIGHWAY IN GUAM AND THIS IS ONLY ONE OF IT PORK BILL WHICH WAS INCLUDE IN THE BILL FOR THE SANDY REBUILT AND NEED,
    THAT IS WHERE THEY SCREW THE AMERICANS TO GET MONEY FOR OBAMA TO SPEND ABROAD INSTEAD OF FOR AMERICANS,
    THE STATE WHO POSESS GOLD AND SILVER ARE IN THE WEST AND ARE ENTITLE TO KEEP IT FOR THEMSELVES IF A SEPARATION OF STATES WOULD BE DECIDED.
    THE WORLD DON’T GIVE ANY THING TO THE STATES BUT THEY HAVE TAKEN A LOT OF TREASURE FROM THE STATES, SO WHO WOULD CARE OF THEM ACCEPTING OR NOT,
    IT’S ABOUT TIME THE STATES START TO REMEMBER THEIR SUPERIORITY OVER THE WORLD,
    AND DO WHAT THEY CARE FOR THEMSELF,NOT FOR WHAT THE WORLD WOULD THINK OF IT.
    THAT MINDSET OF THE WORLD WAS PUSH ON AMERICAN FOR THE UN ONLY BENEFIT,

    ReplyReply
  19. Skook says: 18

    Fantastic material!

    I personally feel the desire of fiscally responsible to secede. I never thought I would say such a thing, but why should people follow a federal government into financial ruin. I think certain states are stupid not to consider other options.

    ReplyReply
  20. @Skook: #18,
    That is now a discussion which we will find crossing our paths more and more frequently as the States which have attempted to maintain control of their finances, search for ways to avoid the shrapnel.

    Separation need not be complete secession, but could for example, simply be a creation of new currencies. Such moves would provide a degree of autonomy over some economic sectors within States.

    Still, the right thing is for the WHOLE to remain secure even with the damage that is about to occur. That will absolutely require very assertive, intelligent, and above all caring leadership.

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  21. TEXAS HAS MANY THOUSANDS OF SIGNATURES declaring their wish to secede,
    this movement started some years ago and has increase in theses last months,the GOVERNOR
    WHICH I HAD CHOSEN TO BECOME PRESIDENT, SAID THAT HE IS NOT PARTICIPATING IN IT ,
    but he respect the will of the people who signed.

    ReplyReply
  22. SKOOKUM
    HI,
    I could see a lot of exchanges from the NORTHENS FRIENDS TO THE SOUTH WEST,
    FROM THE BAKEN BIG OIL WE SHARE, FOR 400 YEARS TO COME,
    NO MORE BOTHER FROM THOSE ACTIVIST.
    AND COAL WIDE OPEN MINING OPEN FOR BUSINESS AGAIN
    FOR THE SUCCESS OF THOSE AROUND,
    WHO NEED MONEY WITH THOSE EXCHANGES,
    JUST THE OLD HANDSHAKE,
    NO NEED TO LEARN ARABIC

    ReplyReply
  23. Pingback: The FED and Indentured Citizens | A Nation In Peril

  24. Note:
    The party continues with lies . . .

    Some helpful insight:
    http://www.youtube.com/watch?feature=player_embedded&v=pwI3Nya5L9g

    At about 11 minutes into it, Schiff nails a malignant intent of the government.

    and . . . .

    http://www.youtube.com/watch?feature=player_embedded&v=HZkBpf1zD9M

    ReplyReply
  25. Skookum says: 23

    @James Raider: Do we have inflation or is our dollar eroding in value?

    ReplyReply
  26. @Skookum: #23,
    The question of inflation is at the heart of our economic health – as your question infers. And few seem to care.

    As far back as May, 2008, I wrote an article on the most critical challenge for the coming 44th President:

    “. . . . The recent rate of commodity price advances, particularly oil, and the resulting hikes in the costs of goods is unsettling all forecasting based on economic indicators and cycles. Price escalation on certain products will simply reduce their consumption, however strong price increases in all staple goods are placing hard upward pressure on inflation, and demand continues unabated. These price pressures are coming in significant measure from a large number of developing countries that have created a demand that was not present in the pressures responsible for the wild inflation swings of the mid 70’s to early 80’s.

    There is debate as to how inflation should be calculated, however, Inflation rates are currently fundamental measurements dependent on the contents of the basket of prices used for the calculations. Such calculations can be manipulated. Accurately defining current inflation toward the higher levels might not be advantageous if it were shown to be at a rate of 8%, for example, instead of the 3.9%, while ten year treasuries are at 4%. A central bank may enjoy the current understatement of inflation, and such understatement might also serve to minimize government liabilities which are indexed to the floating rate, like Social Security. Furthermore, a high level of inflation would suggest stagnant, if not contracting GDP. Then if this isn’t enough to unscramble, we will likely see a reduction in total lending which will incite the winds of deflation. Amidst the confusion of reporting, the new President will have to provide some guidance and leadership to the Federal Reserve, rather than humbly await its decisions, and doing so will require accurate, untainted information. Altering the course on the Fed’s current strategy to continue dropping interest rates would affect inflation and the current slowdown inversely, making any decision difficult.

    From the perspective of any conventional analysis and whatever the published inflation rate might be, the reality is that purchasing power of the dollar, meaning the purchasing power of the taxpayer, is dropping. That is the critical element that all taxpayers can feel without being fed convoluted or distracting statistics. Their real income is shrinking.”

    That was during the first half of 2008. Now – Fiat money allows the easy printing of additional currency that is injected into circulation, precipitating inflation. Prices rise for the most part. You know in your gut and in your bank account that prices relative to wages have risen since you were a teenager rebelling against your parents. Inflation induces spending, and punishes savers.

    In order to hide the real inflation rate, government pushed by The Fed, has changed the methodology for calculating inflation including removal of food and energy costs in the calculations of CPI – Consumer Price Indexes. We’re running at a rate of approximately 9% while the government tells the world the rate is 2%. There is no question that the dollar has significantly dropped in value through the past 30 years. Each one of us can do the calculations in our own lives and discover the truth. The real inflation rate is rapidly slashing your savings.

    Going forward, with Obama and Bernanke leading the charge and energized by buffoons like Krugman at the NYT, we can look forward to 2013 inflation increasing dramatically, even close to doubling and going up from there.

    One might ask, why would the government lie? And one might answer, for example, that most major government liabilities (can you say: Social Security?) are indexed to published inflation rates. Baby boomers will get, . . . well, . . . . I think the term “screwed” comes to mind.

    Skook, be prepared to increase your fees just to break-even as you make your way around the Continent helping those in need of your talents.

    King dollar is eroding in value causing inflation.

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  27. Skookum says: 25

    @James Raider: I think these facts are being felt by lucid wage earners and literate business men; however, there seems to be denial and the belief that the markets, the Fed, and Washington will work magic and we will overcome adversity.

    I am not so sure, in my own little personal business, i have raised y prices, but there are people knocking on every door offering services for less, and I am thinking how do you survive with the costs of doing business. My costs are gas, motels, food, and equipment. Ten years ago I stayed at the best hotels while charging 75% of today’s prices. I ate real meals and nearly had a coronary when a tank of fuel cost nearly $40. I lived well. Now it is Motel 6 and if they have a guest bedroom at the ranch, I call to reserve it. Food is a serious cost for subpar eateries. I can’t expect my customers to pay more and more; many are asking for a price break, and that almost never happened before, but many have gone broke.

    I know I am not the only one wondering how much the economy will erode or how much purchasing depletion I can withstand. I once made really good money, but now I am in a position where taxes are no longer a serious problem, because of the drop in profit. The IRS has lost one serious taxpayer, so now they will need to squeeze the money from guys who are still making a profit and the economy chokes some more.

    This idea of borrowing and spending our way out of a depression seems toxic to all those who have struggled to build businesses in the past, but Obama and his drummer boy Krugman are convinced that sensible prudent measure are disastrous for a failing economy. Like water sining the rowboat, the genius will poke another hole in the boat to let the water out; unfortunately, the boat begins sinking even faster.

    By attacking the gun issue as a huge straw man, Obama has managed to get everyone to forget the failing economy and that is his main purpose in this dog and pony show. He cares little if at all about the common man, it is his cronies who will benefit in this banana republic economy, and while they walk away with hundreds of millions, Americas wealth gathers moment as it slides down the sewers or pockets of the Obama cronies, and the peasants scream with joy as they enjoy their pathetic chump change he uses to buy votes.

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  28. @Skookum: I am sorry to hear how hard you are getting hit by the consequence of decisions made rooted in ignorance, basic stupidity and wilful malevolence, depending on the power positions in Washington and on Wall Street.

    I’ll venture to speculate that you are working as hard as ever and burning up as many miles as you ever have just to maintain the necessary cash-flow coming in your business. Your energy and your entrepreneurialism represent the best of what has enabled the greatness of America. Without it, all that remains is a Nation filled with melancholy, despondency, stagflation and depression.

    We need to convince 51% of voters that killing entrepreneurs through socialism creates a Cuba – an absolute dictatorship, overwhelmingly suffocating a nanny state where only cronies make serious money. This is what is in store here for the next four years, . . . Solyndras run-amock.

    When one watches scenes like the press conference held by this lying twit in the White House, talking to mindless drones, one can only feel a profound embarrassment and sadness.

    As hard as it is to do, save your nickels and save your dimes – pretty soon you’ll have a few ounces of silver and in no time you’ll have some ounces of gold. And if you have a few extra dimes, buy more land, raw or not.

    This government is destroying 50% of your savings every 8 years. And the trend is worsening. America would have been better served if the electorate had decided to close the W.H. for the next four years.

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  29. @Skookum:

    I know I am not the only one wondering how much the economy will erode or how much purchasing depletion I can withstand.

    I completely understand your well-founded concern and apprehension about our near term tomorrows.

    I remained somewhat positive through the past four years, convinced that voters would recognize the obvious, . . . that they hadn’t elected a Democrat President, but had believed an expert glad-hander who was, and was surrounded by, socialists. This bunch was not even “socially liberal but fiscally conservative,” all were full blown socialists. From the top to the bottom of their food-chain, these socialists are people who at their core have no understanding of the human being.

    The election came and went, and out the window went any hope of a turnaround. So much for ‘positive’ feelings. It was also obvious, even prior to the election, that if he won, this President would become even more extreme than what he had shown. And he is. ALL TAXES for everyone are rising and will rise significantly through this and the next five + years. So are government fees. So are all costs related to any services. Thousands of businesses will close particularly small to medium ones. The convoluted aberration called Obamacare has come at the worst time it could possibly have come in America’s history. The Lawyer’s are happy because no one seems to be squeezing them, but the implementation will send costs so high that every family in the country will get the bill.

    It matters little how much the media pretends otherwise and what lies spill from the W.H. – the middle class is being hammered. It will take a few months for reality to sink in, but then it will not matter how much apologists excuse this arrogant President, most of the middle class will come to regret having elected him. I’d wager that we will see this in the second half of this year. That won’t fix the economy, but Congress will then have a chance to take serious action to pull back on the hemorrhaging.

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  30. Skookum says: 28

    @James Raider: I know you view the economy from a much wider perspective, but over the years, I have become semi-friends with people who once represented extreme wealth. The kind who could give ten million to a university for a new building.

    But now, some of them are like me, and wondering if they will survive the economy or the president. No more are they buying $500,000 to a million dollar horses, (One of the reasons I laughed inwardly at the public shock of Romney’s wife riding $100,000 horses, Ha how ridiculous, they are entry level horses in the type that I often work on, silly and provincial attitudes by people who have no concept of horseflesh) now they wonder if they will need to sell their home in a depressed market to survive. It’s not just a few, there are many of these nervous millionaires or past millionaires, some of them have never worked, but they provided employment for a lot of little people like me.

    I appreciate you visiting with me on this subject. It occupies my mind while I drive, work, and sometimes while I sleep.

    Oh well, I have been asked to write a monthly column for a First Nations and Metis lifestyle E-magazine. I suppose they think I will have a positive influence on people, and that is a nice thing. It is easy for me to write positive stories about history and the bush. That seems to be what they want and I will have a much larger market for my books and stories in the future. Goodness knows, it would be much cheaper to sit in a cabin and write about the things I know well than running 50,000 miles a year to work on horses and wonder if you are really making a profit. It’s all a big game.

    I saw where a French teacher was transferred because the school system was going to use computers to teach languages. It’s only a matter of time before great instructors at all levels can make a business out of their daily lectures and children will have the opportunity to actually learn from the best, instead of the bored and stupid.

    These are the positive things I think about, but it is shame that so many great instructors have passed on, I think of some I had in college, they were national treasures; yet so many were nearly useless, and if they didn’t require attendance, no one would show up for their classes, that was how boring they were.

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  31. Skookum says: 29

    This is a different E-magazine fro the one I told you about previously.

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  32. I think the BOEING COMPANY WAS HANDLE BY UNION THUGS USING REVENGE FOR NOT HAVING BEEN ABLE TO GET THE COMPANY GIVE IN TO THEIR DEMANDS,
    the facts that there is so many defects found on a new plane is very suspect if we know the unions had some
    controversy with them previously, but it seems to have been resolved after, but this as been done
    during that time.
    or they have terrorists hidden as employees, doing mischiefs many of them could put down a plane while in flight. and lucky was found before it happen,
    2 scenario very probable,
    the unions are not picky when they hire people

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  33. @Skookum: #28,

    But now, some of them are like me, and wondering if they will survive the economy or the president.

    There are very, very few, who are not getting hurt. Those few are probably at or near the head of the line at the feeding trough, such as senior positions in the larger financial sector firms who support a W.H. compliant to their demands (through guys like Bernanke), a few who control the hollywood-mostly-scuzz machine, a few who are bundlers or donors or senior execs of companies who pander to the W.H. party line. Many execs are afraid to say anything negative because this W.H., well versed and trained in the Chicago way, is capable of reprisals against anyone of influence who goes against it.

    The front of that line is a minute percentage of the 330 million Americans getting hurt.
    ————-

    I saw where a French teacher was transferred because the school system was going to use computers to teach languages.

    Unions have prevented intelligent advancement and effective use of technology in the classroom. There is very little good use of the power of computers being made other than replacing mundane, even inane, processes. Good teachers are about as hamstrung in the classrooms by their own unions, as California farmers are on what can approach their lands by the likes of Monsanto.

    ————-

    @Skookum: #29,

    . . . E-magazine . . .

    Please forward links once your articles go up. It sounds like a really positive endeavour and I look forward to reading them.

    It might be worth having them to send cross-links to the Coast Salish’s web site which represents 16 different bands forming the Squamish Nation in the North West as you no doubt know. They’re a fairly large group by native norms.

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