“A great industrial nation is controlled by its system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the WORST RULED, one of the most COMPLETELY CONTROLLED and DOMINATED GOVERNMENTS in the world–no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.” – President Woodrow Wilson’s quote and later view of the bill he had signed in 1913 appointing our current, private, Federal Reserve Bank
“By this means government may secretly and unobserved, confiscate the wealth of the people and not one man in a million will detect the theft.” – John Maynard Keynes quote from his book “The Economic Consequences of the Peace” published in 1920; Keynes is the father of Keynesian economics of which now, our nation now endures under.
During the “Roaring 20’s” things seemed to work well enough. The beginning of the current Federal Reserve system in 1913 coincided with a sharp inflation from too much money being abruptly pumped into the economy. Yet during the 20’s, despite swift economic growth and confusing factors like large foreign lending and investment, remarkable price stability was maintained. The Federal Reserve System saw this as its goal and aspired to achieve a reputation like the Bank of England, whose notes were thought to be “as good as gold.”
The problem is what happened during the Depression. The Fed was created to insure that banking panics would be averted but banking panics started as unemployment jumped from 6% to 15% at the end of 1930. The Federal Reserve didn’t trust banks enough to back them up and therefore most small banks were deemed insolvent and were allowed to fail. Unfortunately, so many banks were seen as insolvent and allowed to fail that it took the whole United States economy down with it, but the Federal Reserve could be proud of being financially solid itself! This served no purpose beyond being a bureaucratic cover-up.
All turned out to be a classic example of bureaucrats who did not have to pay the cost that resulted from their actions. The banks may fail, the economy collapse, the people could lose their farms, homes and jobs, while the bureaucrats would still have their jobs! If the Depression could be blamed on “speculators,” the bureaucrats could actually see their status, pay, and power increase! In 1907 the banks could work out their own salvation because they actually did not want to fail. Failed banks mean bankers without jobs, perhaps even committing suicide and the Depression resulted in multiple window leaps on Wall Street but there never were any leaps from the bureaucratic banksters at the Federal Reserve Bank of New York.
NOTICE THE SIMILARITIES TO TODAY? We see sharp inflation from too much money being abruptly pumped into the economy, swift economic growth and confusing factors like large foreign lending and investment, price stability was maintained, unemployment abruptly growing from 6% to 15% (factual numbers neglect to report those whom have quit looking for work), many small banks being deemed insolvent and allowed to fail and bureaucratic lies and cover-ups. Bureaucrats whom do not have to pay the cost that resulted from their actions, while the common man does the paying. Blame is placed on the “speculators”, while the bureaucrats actually see their status rise, pay grow enormously and power increase! Today the average investor is separated from his small accumulation of wealth by a system that manipulates interest rates, all markets, and the true facts of the state of the economy. All TRUE economic indicators point towards a false start stock market that just keeps climbing!
The inflation of the 1970’s was never blamed on the Federal Reserve expanding the money supply too quickly, even though the popular economic theory of the time, Neo-Keynesianism, held that inflation could cause prosperity. The system wanted to claim credit but the strategy which didn’t work very well, as unemployment increased with inflation. Today you can see that the lower inflation of the 1980’s and 90’s was the result of restraint in money creation even though our president had appointed Keynesians to the Federal Reserve Board. Everyone was complaining about tight money.
The same missteps of the 1930’s and 70’s are apparent today. The Keynesians are still in power and running the same “play book” J.M. Keynes dreamed up back then in support of the Federal Reserve machine to rule over the oppressed. They are having their way again, with massive “stimulus” spending and money creation. The Democrats took over Congress in 2006 and the money printing and spending took off when they also got the Presidency in 2008. The meager gains and miserable consequences of their waste and recklessness have taught our “supposed leaders” little. Today they continue to advocate nothing new to solve our growing problems and the lump under the rug is now a mountain we WILL fall over. History remains all but forgotten despite the increasing evidence that we are following the same recipe for disaster. The truth is that Keynesian politicians spend counterfeit money, to buy votes for their survival while sacrificing the common man and their children’s future.
No one of sound mind and body could call this system an economic “success”. Does this economy feel like you do when you finally shook that cold or flu? Do you see a robust economy or full employment? Do you even know how it feels to feel good, strong or happy? A malaise has descended on the U.S. and the world, compliments of our administration and the Federal Reserve, and both need to disappear!
Fiat currencies around the world are sinking but does gold surge? One minute the stock market drops and gold prices drop. Next the stock market surges and gold prices turn up. Common sense thinking no longer applies today in the “new abnormal world”, compliments of the Federal Reserve’s controlled, manipulated economic system. The bull market is man-made by those who are determined to own the spoils of the whole world through their “financial wars.”
It is always the same depression, followed by currency wars, trade wars and world wars except for the time being it is a “financial war” and most likely next WWlll. People already in several countries are rioting because they have no jobs and are starving.
When the bear market returns, as they always do, common men are reminded that those who destroyed their lives must atone for their greed, sins and crimes. Investors whom are frightened will again flee to find safety but where is safety? The common investor doesn’t have the bankster’s playbook and can’t quite figure out where to put their wealth because it isn’t in gold and silver or is it? Only when this market turns dramatically down will their criminality come to light. Why can’t the populace see that they are being played for suckers?
We are left standing on the precipice of a cliff. The money changers “doth protest too much” about a recovery reported by their dictate through their media giants whom report just what they are scripted to report. The words are never factual while always entertaining to distract us from the truth of our situation.
It is unfortunate but just like a recovering drug addicted actor or musician who never receives the best treatment because those dependent on the addict fear they would not be needed any longer if they did get healthy. The total populace is addicted to entitlements and handouts. We will never get weaned even with subsidized education as there simply are no jobs, nor any being created. The politicians need the votes of the addicted populace so they can keep their “cushy” government jobs and perks. Those whom work for the government, whether it be in local, state or federal systems, also get to keep their standard of living and pay, medical insurance, vacation pay, pensions and retirements. Today the average person with a job, mediocre job or no job will continue to see their taxes rise until they can no longer keep up the race.
The current climate bespeaks of an impending doom here in the U.S. that is descending again in Argentina but also in Turkey, India, Brazil, Bosnia, South Africa and Japan as the sweater unravels and so will ALL other world nation economies. The U.S.’s and the world’s economy, will never recover without the dissolution of all private banks that keep the chattel entrapped in slavery forever.
Some investors suggest moving into cash, into a dollar that has been devalued 98%, but that could just as surely be a precarious place to sit. Does China’s dependence insure that the U.S. stays afloat? I seriously doubt they care as their government has amassed some 2000 Tons of gold, as an easterner suggested to me, as insurance for the U.S. madness.
Last month I wrote about the similarities of the great crash of 1929 and the market’s rally before its ultimate demise 18 months later. In today’s market the DOW would drop from its high to a low of 1700 points, a 90% drop. It was then that the economy started to fall apart in earnest and ours would also today.
The great market advance since 2009 low may well be the upward correction of the bear market that started in 2000. All market action since 2000 has been a huge, slow building top. If we follow the 1929 pattern, the DOW may decline now for a month and then rally to a second lower peak. Following the second lower peak, the DOW will then decline persistently as the bear market resumes its decent. As things fall apart Yellen will be forced to return to “Q-Infinity and Beyond”. Her acceptance of the lofty position as Federal Chairman is unfortunate as she will not be able to clean up mess made by men. Be assured that she will take the blame for the collapse as the last trick is used and China turns off their credit spigot to the U.S. Then the theft of bank deposits, retirement plans and pensions will be sucked into the government’s giant “BLACK HOLE” but in this case, a giant red hole of red ink.