GATA sues Fed to disclose gold market intervention records

http://www.gata.org/node/8192

2p ET Wednesday, December 30, 2009

Dear Friend of GATA and Gold:

GATA today brought suit against the U.S. Federal Reserve Board, seeking a court order for disclosure of the central bank's records of its surreptitious market intervention to suppress the monetary metal's price.

The suit was filed in U.S. District Court for the District of Columbia and targets Fed records involving gold swaps, exchanges of gold with foreign financial institutions. In a letter dated September 17 this year to GATA's law firm, William J. Olson P.C. of Vienna, Virginia, (http://www.lawandfreedom.com) Fed Board of Governors member Kevin M. Warsh acknowledged that the Fed has gold swap agreements with foreign banks but insisted that such documents remain secret:

http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf

The lawsuit follows two years of GATA's efforts to obtain from the Federal Reserve and the U.S. Treasury Department a candid accounting of the U.S. government's involvement in the gold market. These efforts parallel those of U.S. Rep. Ron Paul, R-Texas, who long has been proposing legislation to audit the Fed. The Fed has wrapped in secrecy much of its massive intervention in the markets over the last year, and Paul's legislation recently was approved by the U.S. House of Representatives.

The Fed claims that its gold swap records involve "trade secrets" exempt from disclosure under the U.S. Freedom of Information Act.

While GATA has produced many U.S. government records showing both open and surreptitious intervention in the gold market in recent decades (see http://www.gata.org/node/8052), Fed Governor Warsh's letter is confirmation that the government is surreptitiously operating in the gold market in the present as well. That intervention constitutes a huge deception of financial markets as well as expropriation of precious metals miners and investors particularly. This deception and expropriation are what GATA was established in 1999 to expose and oppose.

Of course GATA's lawsuit against the Fed will take months if not years to resolve. We think we have a good chance of winning it in court. But we can win it outside court, and much sooner, if the suit can gain enough publicity from the financial news media and market analysts and prompt enough inquiry from them and from the public, the mining industry, and members of Congress.

So GATA urges its friends to publicize the suit and to urge journalists, market analysts, mining companies, and members of Congress to join us in seeking disclosure of the Fed's gold market intervention records. If enough clamor is directed at the Fed about these records, the gold price suppression scheme will lose its surreptitiousness and fail.

Unfortunately the World Gold Council, which each year collects tens of millions of dollars in membership fees from mining companies in the name of representing them and gold investors, refuses to question governments about their surreptitious interventions in the gold market. These interventions powerfully influence not only gold's price but the prices of government bonds and currencies, as well as interest rates generally and the value of all capital and labor in the world. There is no more important issue in the world economy than gold price suppression.

So what should have been the World Gold Council's work has fallen to GATA, a non-profit educational and civil rights organization that operates from month to month on donations from people who share its objective -- free and transparent markets in the precious metals and fair dealing among nations generally. As we prosecute our lawsuit against the Fed, we'll be grateful for your support. We promise to do something with it.

For information about supporting GATA, please visit:

http://www.gata.org/node/16

GATA's lawsuit against the Fed is listed in federal court records as civil case No. 09-2436 ESH, the letters being the initials of the district court judge assigned to it, Ellen S. Huvelle.

You can find the lawsuit here:

http://www.gata.org/files/GATALawsuitVs.Fed-12-30-2009.pdf

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Ron Paul on Ben and the Fed

If Joe Scarborough was aware of what Ron Paul said about the economic ills that were to befall this country later into the decade, why wasn't he speaking with Ron and why wasn't he supporting Ron during the 2008 election season? Did he forget about the comments Paul made back in 2003 or was it that he was never made aware of it until recently? Paul is correct to criticize the Federal Reserve institution as evil, but he plays gatekeeper when he doesn't describe Ben Bernanke as being evil as well. Paul is also incorrect in saying that Ben Bernanke is the most powerful man in the world. Not to take away from the guilt that Bernanke bears himself, but there are other players involved here, like the members of the Bank of England who are so conveniently left out from the scathing criticism. Also, why isn't Paul talking about the findings of the Gold Anti-Trust Action Committee? It's very concerning to me that he hasn't said anything.

I'm turned off by these corporate newscasters who try to play themselves off as trustworthy when for 8 years during King Bush's reign they parroted state propaganda. It means that things are going to get worse as they try to lull people back to sleep from their wake-up so that they can resume their program of deception. Yes, that means you, Glenn Beck, and I don't care if you rewrote Thomas Paine's Common Sense.

Oh, and here's something I didn't know. Obviously Murray Rothbard and Pat Buchanan were friends from way back. Eustace Mullins has some information on both Rothbard and Mises in his book The World Order. I'll post the passage in another blog article.

E.P.A. Designates Forests “Enemies of State.”

I don't know whether to laugh or cry.

I think I'll just boil over with rage.

E.P.A. Designates Forests “Enemies of State.”

Today the Environmental Protection Agency’s chief Martinet (official title) Lisa P. Jackson (formerly of Wendy and Lisa, and Lisa Lisa and Cult Jam), has issued orders that Carbon Dioxide, which is what you are breathing out right now, is a deadly pollutant.

Many individuals have been taken by surprise by this official ruling of the Obama administration, including one Terence Wheeler, of Macon County, Georgia, who claims to have been breathing C02 out and in for many years without noticing that he was being poisoned.

But criminalization of this deadly poisonous toxic pollutant that is responsible for all acts of terrorist weather, as well as AIDS, is just the beginning for EPA super-agent Jackson.

Said Mrs. Jackson to the packed hall of reporters, “While it is well known, and I quote, that ‘climate change could reduce income from farming and fishing, possibly driving some women into sex work and thereby increase HIV infection,’ we must take an even larger step than preventing people from having sex, to stop global warming.”

No, says Mrs. Jackson, “We’ve got to clean up our acts, and that means going through our closets and finding all the dresses that don’t fit, and whether we like it or not, or think that one day we might squeeze into them again…what was I saying? Oh, yes. We’ve got to throw out those old clothes and old relationships, and start anew.” Said agent Jackson, with a mouthful of hostess devil’s food cake.

“And that’s why we’ve got to cut down the forests of the world.” She told a stunned, but quickly compliant audience.

Following the conference, the EPA issued a formal declaration, explaining that forests were now an ‘Enemy of the State.’ From the briefing:

“Because trees and plants take in C02 and turn it into oxygen, they must be considered enemies of the state, for co-dependently facilitating global warming by not preventing us from stopping production of C02.”

So now the Environmental Protection Agency has made the bizarre, yet predictable move of categorizing all plant life as enemies of the state. Declaring all plant life as an enemy of the state is bizarre because this sounds more like an idea for a satirical comedy skit. And predictable because I'm not very surprised. The Environmental Protection Agency has turned into the State Protection Agency. It is quite insincere and disingenous for anyone to take seriously the government's concern for the environment's welfare. Why? Well, because the government's only concern is its self-existence and its continued application of tyranny over free peoples. The government's concern for the environment only extends to the point where it perceives a threat level something or someone poses to its criminal existence.

EPA Chief Lisa P. Jackson is in clinical psychiatry terms: a lunatic.

Woman's Leg Amputated by Mistake Following False Cancer Diagnosis

(Mister Goldbug - for access to all the links in this article, please go to the website and read the article yourself.)

(NaturalNews) Word to the wise: Be careful of what doctors tell you to cut off following a cancer diagnosis. Submitting to cancer surgery can cost you an arm... or a leg.

Increasingly, cancer surgeons are recommending that woman have their healthy breasts surgically removed as a way to prevent cancer -- even when those women have no cancer! But recently, an even more bizarre story surfaced: According to a BBC report (http://news.bbc.co.uk/2/hi/uk_news/...), a UK woman had her leg amputated by a cancer surgeon who claimed her leg showed signs of a malignant cancer tumor. She naively agreed to undergo the surgery and awoke with quite a shock: Not only was her leg missing, but the doctor told her she never had cancer in the first place.

I'm trying to figure out who made the bigger goof here: The doctor who claimed there was cancer, or the patient who agreed to let a doctor amputate her leg without getting a second opinion...

Here's what the doctor reportedly said upon her regaining consciousness: "I've got a bombshell to tell you - I'm very sorry, but we shouldn't have taken the leg off."

At that point, I think the patient should have picked up that amputated leg and beat the snot out of the surgeon with it. But that's just me...

The finest medical care in the world

The leg amputation patient was offered a settlement of roughly US$158,000, much of which ended up being used to buy a prosthetic leg. This is how the medical system generates business these days: First they harm patients with one procedure (drugs, chemo or surgery), then they make even more money treating the harm they caused in the first place. It's quite a clever system for repeat business.

The Royal Orthopaedic Hospital, where this surgery took place, denied it had been negligent. (That must be some creative excuse-making.) The leg amputation was approved by "a group of clinical experts - three of them world-renowned in their particular fields," according to statements published by the BBC. (None of them lost their jobs over the incident.)

Is that a relief? It would be far more comforting to think this was a mistake made by bumbling idiots who had no idea what they were doing. But no, this leg amputation error was made by the best doctors and surgeons around! These are the smart ones!

I'd hate to think what some lesser-educated members of the medical profession might have done. Perhaps they would have resorted to the tactics of masochistic U.S. breast cancer surgeons and recommended that the women remove both legs just to make sure she never gets cancer there in the future.

And why stop at that? Chop off the arms, legs, testicles, breasts, colon and reproductive organs -- all just to make sure no cancer appears there. Soon, you're left with the Black Knight from Monty Python, a wiggling torso with an animated head that insists he's just fine and can still fight.

You gotta wonder, by the way, why this victim settled for a mere $158,000. Isn't your leg worth much more? I don't know about you, but I need both legs because there are still too many practicing cancer surgeons who need a good swift boot to the head!

Need a CT scan? Here's the "Hiroshima special..."

Oh, and just in case you think the craziness of modern health care is limited to surgeons who remove the wrong body parts, here's something else you need to know. As the LA Times reports:

"After Cedars-Sinai reset a CT scan machine in February 2008, more than 200 brain scans on potential stroke patients were performed at eight times the normal dose of radiation, the hospital says." (http://www.latimes.com/news/local/l...)

So instead of getting a low-risk medical imaging test, patients who went to Cedars-Sinai got something more like a taste of Hiroshima and its radioactive fallout. CT scans, even when properly calibrated, are equivalent to receiving 100 chest X-rays (http://www.naturalnews.com/023582.html). Multiply that by eight -- as happened at Cedars-Sinai -- and you the equivalent of 800 chest X-rays worth of radiation all in one setting!

"Hey doctor, something's strange here. All these CT scans are showing the brains of these patients are completely fried! What should we do?"

Replies the doctor at Cedars-Sinai: "Don't worry about it. If these patients had any brains to begin with, they wouldn't be visiting us in the first place!"

Jewish Hate Group Calls Patriotic Grass Roots Organizations Un-American

Okay, so the title of this blog article is extreme. It draws your attention to the piece. And that's precisely what I wanted out of this.

In their continued efforts to subdue the white American male and those who support him in his goals, the Anti-Defamation League has labeled two organizations of identical purpose and similar origin as "extremist" and "anti-government". Their article, Oath Keepers and Three Percenters, reads with a bias that is cloying. Since it has so many features of a propaganda piece, we cannot rely on it to glean any truth from the article. And the only inspection possible that will allow us any truth would be to consult the groups targeted therein the piece.

After telling us where the first national conference of the OathKeepers took place and for how long it lasted, it then, the skeptic observer assumes, under reports the scale of attendance by commenting that only 100 people attended. Because of what follows in their article, this statistic can only be verified by the testimony of those who were there. The article then audaciously reports, with no supportable evidence, that the group is much smaller in membership than the declaration of an OathKeeper boardmember who advanced the number 2,000 in counting the tally of dues-paying members.

What follows is political language phrased to elicit apathy from the reader. In understanding that people sympathize more with veterans over lawyers, the ADL carefully chooses to describe OathKeeper's founder Stewart Rhodes as a lawyer instead of a disabled U.S. Army paratrooper. In this respect, this is beneficial to the ADL who want nothing more than for ignorant Americans to believe patriotism equals treasonous extremism.

Editorially, the ADL contemptuously eludes with disdainful pride that in refusing to obey suspected unlawful commands by traitors in all branches and at every level of government, the Oathkeepers' members should be restrained to strap-belted gurneys for their own mental-health protection. It was not hard for the author of this blog article to decipher their encoded message. Look at the following excerpt below in blockquote for yourself.

The Oath Keepers encourage members of the military and law enforcement to pledge not to follow certain hypothetical "orders" from the federal government. These "orders," including one "to put American citizens in detention camps," and another "to disarm the American people," echo longstanding conspiracy theories embraced by anti-government extremists, who claim that the U.S. government is creating a police state. The Oath Keepers try to appeal to military and law enforcement personnel by reminding them that they swore an oath to defend the Constitution "from all enemies, foreign and domestic," and suggesting that now is the time to live up to that oath by resisting an allegedly tyrannical government.

"Allegedly tyrannical government," "echoing longstanding conspiracy theories embraced by anti-government extremists," is the type of political language used to slanderously and libelously assail American patriots in the public arena when trying to engage in serious discourse about topics they feel need to be discussed.

Their vials of poison still not empty yet, the ADL shoots their guns again twice more at American patriot Stewart Rhodes. First they suggest in language not so subtle that the picture of an Oath Keepers patch on an active-duty serviceman's arm sleeve is a fraud. Second, by brazenly accusing OathKeepers and ThreePercent as being organizations formed by extremists and opportunists capitalizing on the discontented masses unhappy with having a black President. But one must ponder if there are so many discontented over the President's blackness, how did Barack Obama rally enough votes to launch him into office?

Federal Reserve Policy Audit Legislation ‘Gutted,’ Paul Says

Oct. 30 (Bloomberg) -- Representative Ron Paul, the Texas Republican who has called for an end to the Federal Reserve, said legislation he introduced to audit monetary policy has been “gutted” while moving toward a possible vote in the Democratic-controlled House.

The bill, with 308 co-sponsors, has been stripped of provisions that would remove Fed exemptions from audits of transactions with foreign central banks, monetary policy deliberations, transactions made under the direction of the Federal Open Market Committee and communications between the Board, the reserve banks and staff, Paul said today.

“There’s nothing left, it’s been gutted,” he said in a telephone interview. “This is not a partisan issue. People all over the country want to know what the Fed is up to, and this legislation was supposed to help them do that.”

The Fed, led by Chairman Ben S. Bernanke, has come under greater congressional scrutiny while attempting to end the financial crisis by bailing out financial firms and more than doubling its balance sheet to $2.16 trillion in the past year. The central bank is also buying $1.25 trillion of securities tied to home loans.

Paul, a member of the House Financial Services Committee, said Mel Watt, a Democrat from North Carolina, has eliminated “just about everything” while preparing the legislation for formal consideration. Watt is chairman of the panel’s domestic monetary policy and technology subcommittee.

Keith Kelly, a spokesman for Watt, declined to comment and said Watt wasn’t immediately available for an interview. Watt’s district includes Charlotte, headquarters of Bank of America Corp., the biggest U.S. lender. (Mister Goldbug - well this certainly makes sense why Watt would elimite "just about everything" in Paul's bill. He either works unofficially for Bank of America, who may or may not have put him in office, and this is something that needs to be researched, or he is doing the Federal Reserve a mere favor. But really what's the difference? Mel Watt is a whore.)

Original Language

Paul said he intends to introduce an amendment to the bill when it comes to the House floor for a vote restoring the legislation’s original language.

Representative Barney Frank, a Democrat from Massachusetts and chairman of the committee, said in interview that he intends to ensure legislation would provide a time lag between FOMC actions and the reporting of them.

Such a provision would “lessen the market impact,” he said on Oct. 20. “The importance is to see that there are no abuses and to judge what they did.” (Mister Goldbug - I've always loved the way defenders of the Fed have argued time lag transparency. There's another word for time lag and its usually associated with people who are drunk -- slow response time.)

The legislation will probably be included in a broader Democratic package of financial-regulation changes in the House, Frank said.

http://www.bloomberg.com/apps/news?pid=20601103&sid=atc2o1ijLRno

Flu Shot Caused Neurological Disorder in Cheerleader

I've been meaning to post this for a few days now. I'm finally getting around to it.

One thing I must mention is a statement made by, I guess, a reporter (who should be fired and never allowed to work for a news agency again). First I'm going to quote what she said in this video below here and then translate into english what was communicated in doublespeak.

Reporter: You know, there's no conspiracy here folks! Just get your damn vaccine! Listen to our government agency. These guys are telling the truth! Forget the conspiracy! Just get your damn vaccine!

The Honest English Translation: Do you presume to criticize the Great Oz, you ungrateful creature? Pay no attention to that man behind that curtain! Government is holy, pure and virtuous! It has never done anything wrong! It has never failed! Trust it, damn you!! If it wasn't for the government, you wouldn't be alive!! It gave you life, it surely can take it away! So mind your manners, don't think, and go back to sleep!! And just get your damn vaccine!!

As for Desiree Jennings.... have mercy on her soul!!!

What is NNDB? New Link Added to the Blog

From its website:

NNDB is an intelligence aggregator that tracks the activities of people we have determined to be noteworthy, both living and dead. Superficially, it seems much like a "Who's Who" where a noted person's curriculum vitae is available (the usual information such as date of birth, a biography, and other essential facts.)

But it mostly exists to document the connections between people, many of which are not always obvious. A person's otherwise inexplicable behavior is often understood by examining the crowd that person has been associating with.

Eventually, we will have synopses and analyses of creative works by the people in the database, including their books, films, and recordings.

A great researching tool for those who feel that there is no accountability in our government. You can also use it to research the interlocking directorates between corporations.

Some Unexpect, Great News: Irving Kristol Dead at 89

Recently, I've been reading Mullins' compendium work to his Federal Reserve book, The World Order, which cites the newspaper many, many times. While perusing through the pages of the New York Times, I found this article on Irving Kristol, the trotskyite communist who radicalized the Republican Party by introducing the poisonous doctrine of neoconservatism which is nothing new and isn't conservative just as the Federal Reserve isn't federal and has no reserves.

He brought to the Republican Party his rabid dedication to communism with his friend Norman Podhoretz, who both, along with the help of other backstage power-brokers, tranformed the Republican Party into the Trotskyite Wing of the Communist Party.

Ron Paul wrote quite extensively about the neocon agenda in his article Neo-CONNED.

Be aware when reading the article. The NYT and Weekly Standard do try to make Kristol look like an anti-communist anti-socialist. Not true.

Federal Reserve Admits Hiding Gold Swap Arrangements

11p Tuesday, September 22, 2009

Dear Friend of GATA and Gold:

The Federal Reserve System has disclosed to GATA that it has gold swap arrangements with foreign banks that it does not want the public to know about.

The disclosure contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very much involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally.

The Fed's disclosure came this week in a letter to GATA's Washington-area lawyer, William J. Olson of Vienna, Virginia (http://www.lawandfreedom.com/), denying GATA's administrative appeal of a freedom-of-information request to the Fed for information about gold swaps, transactions in which monetary gold is temporarily exchanged between central banks or between central banks and bullion banks. (See the International Monetary Fund's treatise on gold swaps here: http://www.imf.org/external/bopage/pdf/99-10.pdf.)

The letter, dated September 17 and written by Federal Reserve Board member Kevin M. Warsh (see http://www.federalreserve.gov/aboutthefed/bios/board/warsh.htm), formerly a member of the President's Working Group on Financial Markets, detailed the Fed's position that the gold swap records sought by GATA are exempt from disclosure under the U.S. Freedom of Information Act.

Warsh wrote in part: "In connection with your appeal, I have confirmed that the information withheld under Exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of Exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."

When, in 2001, GATA discovered a reference to gold swaps in the minutes of the January 31-February 1, 1995, meeting of the Federal Reserve's Federal Open Market Committee and pressed the Fed, through two U.S. senators, for an explanation, Fed Chairman Alan Greenspan denied that the Fed was involved in gold swaps in any way. Greenspan also produced a memorandum written by the Fed official who had been quoted about gold swaps in the FOMC minutes, FOMC General Counsel J. Virgil Mattingly, in which Mattingly denied making any such comments. (See http://www.gata.org/node/1181.)

The Fed's September 17 letter to GATA confirming that the Fed has gold swap arrangements can be found here: http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf

While the letter is far from the first official admission of central bank scheming to suppress the price of gold (for documentation of some of these admissions, see http://www.gata.org/node/6242 and http://www.gata.org/node/7096), it comes at a sensitive time in the currency and gold markets. The U.S. dollar is showing unprecedented weakness, the gold price is showing unprecedented strength, Western European central banks appear to be withdrawing from gold sales and leasing, and the International Monetary Fund is being pressed to take the lead in the gold price suppression scheme by selling gold from its own supposed reserves in the guise of providing financial support for poor nations.

GATA will seek to bring a lawsuit in federal court to appeal the Fed's denial of our freedom-of-information request. While this will require many thousands of dollars, the Fed's admission that it aims to conceal documentation of its gold swap arrangements establishes that such a lawsuit would have a distinct target and not be just a fishing expedition.

In pursuit of such a lawsuit and its general objective of liberating the precious metals markets and making them fair and transparent, GATA again asks for your financial support and that of all gold and silver mining companies that are not at the mercy of market-manipulating governments and banks. GATA is recognized by the U.S. Internal Revenue Service as a non-profit educational and civil rights organization and contributions to it are federally tax-exempt in the United States. For information on donating to GATA, please visit here:

http://www.gata.org/node/16

You can also help GATA by bringing this dispatch to the attention of financial news organizations and urging them to investigate the Fed's involvement in gold swaps particularly and the gold (and silver) price suppression schemes generally.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

http://www.gata.org/node/7819

Republicans Adopt Ron Paul's Message With Something Missing

A friend sent me this article in email. And I had to post it. But first I have to point something out before I duplicate the story with the link provided afterward. I'm developing this sense that a lot of conservatives are flocking to Glenn Beck's side to sit at his feet and learn the Wisdom of the Elders, if I may be allowed to be so dramatic. And I'll admit that Beck has recently scored points with me even in his exposé of the dedicated communists in Obama's Administration. But I have to wonder how much of this heavy investigation into the Obama's Administration by the conservative journalists has to do with their disappointment in the loss of a Republican victory in the 2008 elections.

They certainly weren't this critical with the Bush Administration like Ron Paul had been, but Republicans do tend to hate liberal Democrats more than the State. After witnessing the popularity of Ron Paul, the conservatives and their counterpart journalists are desperately trying to win back disenfranchised voters who went with Paul and similarly minded candidates. Glenn Beck recently made an attempt at being more Ron Paul friendly by writing a modern version of Thomas Paine's famous tract, Common Sense. Only the gullible are going to fall for this disingenuous pandering.

The Fox News Judas goats never cease to amaze me. The article follows:

Trouble is it won't work! One must do more than study the words of another in order to embrace a new philosophy. Beck, Palin, Romney even Ann Coulter are all now sounding like avid Ron Paul supporters, although seldom giving credit where it is due.

Glen Beck has been making headlines for himself recently by denouncing the Republican party and making statements that he would have voted for Hillary Clinton over McCain. He even went so far as to draft five pledges a candidate should make in order to show himself "for the people". However, a close inspection of these pledges reveals that either Beck does not "get it" or he is a spokesman for the current Republican party which is desparate to regain its conservative support.

Upon reflection, one will notice that underneath Beck's pledges is an assumption that the government should be "in control" but has simply erred and gone off course. Notice the repeated use of the word "until". Once the necessary corrections have been made, the government can take its rightful place back in the seat of power and control. This logic is faulty at its core. Politicians are elected to manage the public's trust, not to be "in charge'. Regardless of common perception and celebrity worship, civil servants are to be just that: servants. Most politicians are keenly aware of this during elections but suffer amnesia immediately thereafter.

The most revealing of the 5 pledges is the last. "I believe the United States of America is the greatest country on earth and therefore will not apologize for policies or actions which have served to free more and feed more people around the world than any other nation on the planet." This statement is arrogant and ethnocentric at best. Of course one should believe strongly in his country and maintain a certain amount of patriotic pride. This statement, however, is dangerous. It is the essence of Republican "big government".

Whenever one places an agenda above the people it is meant to serve, no matter how noble the intentions, he then ventures off of the ground of freedom and liberty and into the region of totalitarianism and authoritarianism. If one holds the fundamental belief that the people need the government to "take care of" them, to "protect" them, to "regulate" them and to "enforce" morality, agendas and ideals, then he will always revert back to his particular party of choice. The fact is, that while we must have laws to address fraud, abuse and corruption, the less government we have the more liberty we will possess.

While Beck's pledges address the present concerns of government spending, taxation, environmental regulations and security, which are typical concerns during a Democratic administration, he fails to address the manipulation by corporate interests and corporate influenced legislation. One must remember that the stimulus and bailout programs began under the Bush administration. Most politicians, including Obama himself are sponsored heavily by major corporate interests. This goes far beyond lobbying. The direct connection through board membership and corporate earnings between politicians in both parties and major financial interests is totally obscene. In fact, Gerald Celente defines it as the essence of fascism.

Ron Paul's message is simple, People First! While the Republicans may be attempting to co-opt this message they continue to cling to their agendas of war, federal empowerment and bribery. The co-dependent media anchors and authors have a vested interest in contributing to the party's success. After all, they have built a career around it.

Ron Paul is the litmus test, the standard. His message has been the same for over thirty years. His funds are supplied by his constituents. He maintains a simple lifestyle and he defends the Constitution whether it is popular or not, regardless of personal gain. We need to do what is right for America! We need liberty for all, justice for all, respect for all. What we do not need from our government is patronization, control and co-dependence. Government is meant to be servant, not master!

Republicans Adopt Ron Paul's Message With Something Missing

Former Congressman James Traficant Interviewed by Greta Van Susteren

Jim Traficant was railroaded out of Congress and into prison in 2002 because he was strong minded in his convictions and was too outspoken about what was happening in Washington, D.C.

Gold Is Pale Because It Has So Many Thieves Plotting Against It

“GOLD IS PALE BECAUSE IT HAS SO MANY THIEVES PLOTTING AGAINST IT”

Antal E. Fekete*
Professor of Money and Banking
San Francisco School of Economics

* The title is a quotation from Diogenes Laertius (fl. 2nd century A.D.)
This was the favorite quotation of the late Chicago economist and gold expert Melchior Palyi.

25 years ago I visited Comex at the World Trade Center, watching the feverish activity in the gold pit from behind the glass wall in the gallery. A gentleman standing next, unknown to me, remarked: “One day this make-believe charade will come to a bad end. All that these guys are doing down there is creating ever more claims to the same lump of gold — just as governments have been doing before they met their ignominious fate.”

Later that day I went to see the Director of Research of Comex. During our chat that lasted about an hour he intimated that he was greatly disturbed by the mystery that the gold basis has been steadily declining year in and year out. Perhaps it was the fact that he could not solve the puzzle that bothered him so much that he quit his job a few months later.

I must confess that I could not solve that puzzle myself until the Twin Towers of the World Trade Center came tumbling down many years later. For me it was a symbolic event, conjuring up the unknown gentleman and bringing back his cryptic remark. We are watching a game of musical chairs. When the music stops, paper claims to gold will be dishonored, and the gold futures markets will tumble down just like the Twin Towers.

In my earlier article The Dress Rehearsal for the Last Contango I observed that “a very strange phenomenon has been manifesting itself during the past thirty-five years, since the inception of gold futures trading. The basis as a percentage of the rate of interest, rather than remaining constant, has been vanishing and, by now, it has dropped to zero.” In the rest of that article I drew attention to the apocalyptic consequences of the prospect of permanent backwardation in gold threatening the world, which is completely ignored by the makers of monetary policy, as I had opportunity to convince myself during my recent encounter with Paul Volcker, the Chairman of President Obama’s Economic Recovery Advisory Board. As I see it, the Debt Tower will topple, just as the Twin Towers of the World Trade center have, when hit by permanent gold backwardation. The reason is that the availability of gold is absolutely indispensable for maintaining our system of irredeemable debt. Only then will bondholders, like the participants of the game of musical chairs, be satisfied that there is a goodly number of vacant chairs available, so let’s get on with bond trading, gold futures trading, and let the music roar on.

But once permanent backwardation in gold establishes itself, gold is no longer available at any price. Bondholders will scramble to sell their irredeemable bonds before they lose all their remaining value. There is no other way to pacify bondholders than letting the game of musical chairs go on, that is, continue the charade of gold futures trading putting ever more claims on the same lump of gold.

The response to my article was overwhelming. I have never realized how many people out there are following my writings on the internet so closely. I want to thank every one of you and assure you that I take this responsibility most seriously. Even if I cannot answer every message I get from you individually, I will continue to do my best to explain the results of my research in simple, understandable terms.

Let me spell out for my readers what the vanishing of the gold basis means from the point of view of the puppet-masters of the gold futures markets. It means that they are fighting a losing battle. They are desperately trying to coax gold out of hiding by offering ever higher bribes — not in terms of the price but in terms of the basis. A low basis means that they offer to take your cash gold and let you have gold futures in exchange at a discount price. (The discount is contango minus the basis, so that the two are inversely related: as the basis falls, the discount increases.) This will allow you to invest an amount equal to the price of gold (less five percent, the margin on the gold future) in any way you want and, having paid the reduced contango, you can keep the profits. The point is that you will still benefit from any advance in the gold price, same as you would if you owned cash gold. You can have your cake and eat it. Remember, in a full carrying charge market, such as the gold futures markets were at inception, no such bribe money was offered.

But, lo and behold, people who are willing to take the bribe are few and far in between. So the pot is sweetened. The basis is lowered. Maybe at one point gold will be coaxed out of hiding, once the bribe is high enough.

No such luck. When the basis gets as low as zero, it means that the discount on gold futures has gone so high that it is equal to the opportunity cost of holding gold. Therefore, again, if you give up your cash gold in exchange for gold futures, you can invest an amount equal to the price of gold (less five percent) in any way you wish, but now they let you keep your profit in its entirety. And you can still benefit from any advance in the gold price, same as you would if you had the cash gold in your hands.

This is where we are now. Indications are that the game fish still does not bite. What now? Where do the futures markets in gold go from here? Well, the pot can be further sweetened. The basis can be pushed down into negative territory. Gold could be forced into backwardation. Let’s see what that means. It means that you can sell cash gold and buy it back for future delivery at an outright discount. Somebody wants your gold so badly that he is willing to pay you for the privilege of holding it for a few days, few weeks, few months paying your storage and insurance fees. You get your gold back at a cheaper price. You make a risk-free profit on this deal. If the gold price goes up in the meantime, you benefit fully, just as if you have held on to the cash gold.

Now risk-free profits are a promise of unlimited profits because, if you are nimble enough, then you can make any number of round trips. However, opportunities to earn risk-free profits from arbitrage do not last. Other nimble speculators would jump in and their unlimited action would close the spread that gave rise to the risk-free profit in the first place. Yet I predict that, after a period of initial vacillation between backwardation and contango (due to action by misinformed traders) gold will settle in permanent backwardation.

Wouldn’t that be loverly? Risk-free profits galore. No need to bother with storage charges and insurance premiums. Just sit back and enjoy the ride to riches.

But hey, wait a minute! Is the arbitrage really risk-free? You give up your cash gold, but what if your gold futures contract expires and they refuse to return your gold? Commodity markets can change the rules of the game mid-stream. They just declare ‘cash settlement only’ for outstanding contracts. Unsaid and unstated, not even mentioned in small print, is the fact that the trap door may be slammed shut. The investor who has taken the bribe is neatly separated from his gold when the hairy godfather waves his magic wand. “Gold is pale because it has so many thieves plotting against it.” There are all too many trap doors, sprung wide open, ready to devour gold belonging to the unweary.

That’s it. That’s why more people do not fall for the bribe even when tickled with promises of risk-free profits. The promise is mendacious. There is a risk: the risk that you lose your gold and you may never be able to buy it back at any price. There is no other explanation for the fact that the promise of risk free profits does not eliminate the discount on the futures price of gold. This is the true explanation for the coming permanent backwardation in gold.

Gold futures trading is clearly a con-game, but it is in a symbiotic relation with the regime of irredeemable currency and irredeemable debt, on which our ‘democracy’ is based. So we have a double con-game. We have a smaller con-game of gold future trading inflicted upon gullible people who want to have their cake and eat it and, then, we have the much bigger, all-embracing con-game of irredeemable currency, inflicted upon the rest of us, innocent bystanders. It is inflicted by the United States government that stoops so low as to trample on the Constitution mandating a metallic monetary system for this country precisely in order to outlaw all Ponzi-schemes. The government could never muster the moral courage to propose an Amendment that would make the Constitution conform to its monetary system — as it would open Pandora’s box. Rather, it would live with the onus of being in contempt of the Constitution. The government of the United States had looted gold from its own subjects in 1933. It looted even more gold from people not under its jurisdiction in 1971. It continues to operate in the same tradition.

The larger con-game of the irredeemable dollar could not have gone on so long, but for the smaller con-game of gold futures trading from which it takes its strength. Historically, every regime of irredeemable currency has met its Nemesis in no more than 18 years. The present experiment with irredeemable currency has been going on for twice that long. Of course, gold futures trading is a relatively new invention that was not available to the managers of the assignats, mandats, or the Reichsmarks. Nor was it available to the managers of the most recent experiment with the Zimbabwe dollar. But, as the relentless fall in the gold basis clearly shows, people cannot be conned forever. The clock is ticking. Sand in the hourglass keeps dropping. When it runs out, the present experiment with fiat dollar will also meet its Nemesis, as all the earlier experiments have. That’s the good news.

The bad news is that the government of the United States persists in continuing the double con-game and Ponzi-scheme through thick and thin. It is callous to the economic damage it is causing world-wide, and it disregards the danger of permanent gold backwardation that would inflict utter economic pain on the innocent people of this country, to say nothing of the people of the rest of the world. As explained above, it would make the runaway debt-tower of Babel topple, burying people under the rubble as the Twin Towers of the World Trade Center buried people working inside.

When that happens, the government of the United States will not have the excuse that it has not been warned. I have delivered the message in person to the Chairman of President Obama’s Economic Recovery Advisory Board, Paul Volcker, when we met at the Santa Colomba Conference last July. I also consider it my moral duty to warn all the people who are willing to listen of the danger lying ahead. It is incredibly naïve to believe that gold can be removed from the international monetary system with impunity at the stroke of a pen, as they pretended to do it in 1973. The gold corpse still stirs. When it rises from its prostrate position it will, like Gulliver, dust off the Lilliputians who like ants have been scurrying all over his body. The day of reckoning will have dawned.

Keynesian and Friedmanite economists bear a special responsibility for the disaster. They dug in and monopolized their positions at universities and research institutes. They never allowed a free discussion on the gold standard. They did everything to aggrandize and perpetuate their own power as the sole advisors on government policy. They will not be able to live down this shame in a thousand years.

Masters Gold Fund

In my previous article More Dress Rehearsal of the Last Contango (see References below) I mentioned the unique Masters Gold Fund, soon to come on stream, structured to take advantage of the permanent backwardation in gold when it comes, which would ground all other gold funds. I have acted as advisor from inception and during the incubation period. In that article I listed seven exclusive features spelling out how the Masters Gold Fund would operate in these perilous times. It would take its clues, not from the gold price that is open to manipulation, but from the gold basis which is a pristine indicator telling you about the willingness of gold holders to carry on in playing the game of musical chairs and putting their gold at stake.

In response to subsequent inquiries that I have received, I provide the name and e-mail address of the manager of the Masters Gold Fund, who will be happy to send the prospectus to interested parties upon request:

Sandeep Jaitly (Sandeep.Jaitly@soditic-cbip.co.uk)

If you come to our Seminar in Canberra, Australia, in November, then you will be able to meet Mr. Jaitly in person, and ask him questions directly.

Disclosure

I have not been paid by Masters Gold Fund or its parent company for writing this article, or any other article representing it. My interest in the project is purely intellectual. I want to demonstrate that, under the regime of irredeemable currency, it is possible to have gold locked up in a vault and still make it bear a return in gold — to disprove Aristotle’s dictum: pecunia pecuniam parare non potest (gold does not beget gold).

What we have here is an historical anomaly. Never before could one earn a return on gold in gold unless one surrendered control, thus incurring a risk. The risk in investing in the Masters Gold Fund is that the gold price stabilizes, that is, the world willy-nilly goes back to a gold standard. However, this is a risk that anybody should be glad to take.
August 29, 2009

Barney Frank Says House Will Pass HR1207 in October

source

Adding Blog Link - 2nd Constitution Group

I support The Second Constitution Group of Roanoke, VA. Link has been added.

Ed and Elaine Brown: Victims of Tyranny

This article was written 16 days ago by "STAFF AND WIRE REPORT". This piece appears in UnionLeader.

It's a biased article and I will not be reposting all of it. I'll just be pasting a few of my favorite selections from the article that I will challenge.

Tax evaders Ed and Elaine Brown were convicted Thursday of amassing weapons, explosives and booby traps and plotting to kill federal agents during a nine-month standoff in 2007 at their fort-like home in Plainfield.

Really? Because I thought they were convicted for "evading" taxes. Ed and Elaine Brown had the right to fear their government. After all, this was the same government who in the 90s murdered the family members of Randy Weaver and performed a Jewish holocaust-style execution on David Koresh and his branch Davidian congregation.

The couple, who do not recognize the federal government's authority to tax its citizens, held hands and looked straight ahead as the verdict was read. They refused to stand when the jury and judge left the courtroom.

A fine piece of biased reporting. The federal government does not have any taxing authority that it can levy on private citizens of the 50 states of the union. This is INDISPUTABLE FACT no matter how much government and its hired propagandists want us to think. The federal government only has jurisdiction over itself and what it creates. Unless you have a federally-connected job, you do not owe a federal income tax. This is also what the FairTaxers don't understand. For a more full-bodied explanation of what I'm talking about consult Peter Eric Hendrickson, author of the book Cracking the Code: The Fascinating Truth About Taxation in America.

For an understanding of our court system, read The Rape of Justice by Eustace Mullins. Here's a hint: our courtrooms are nothing but Freemasonic lodges where Talmudic law reigns supreme by black-robed deities who enforce oriental despotism upon a Free People.

Ed and Elaine Brown are sovereign citizens who are being terrorized by communist thugs because they didn't follow the argued proper legal protocol of filing with the IRS, the private collection agency of America's Third Central Bank, the Federal Reserve System.

During the standoff, the Browns welcomed a parade of anti-tax, anti-government sympathizers, four of whom have been convicted of helping them stockpile weapons and sent to prison. One visitor was Randy Weaver, whose wife and son were killed along with a deputy U.S. marshal at a 1992 shootout in Ruby Ridge, Idaho.

Sigh. It is not anti-tax, anti-government to oppose that ruthless extortion racket, the Internal Revenue Service. It is, however, traitorous to even suggest that such an organization should exist in this country.

Loni Horiuchi was the madman psychopath who lead both the Ruby Ridge incident and the one down in Waco, Texas that involved the Branch Davidians. In either case, no one has been charged with these crimes.

In one media interview, Ed Brown, 66, said: "The chief should know, along with the U.S. marshals, along with the local county sheriff -- especially the county sheriff, local police and local state police -- if they come in here to do us in, they kill my wife, myself or both or try to arrest us, I said the chief of police in this town, the sheriff, the sheriff himself will die. This is war now, folks."

I like how the media interview they refer to isn't cited. So how do I know this statement was ever made? I haven't been following the Browns story too closely as I should have been. I know that Peter Hendrickson has made some statements about the Browns not following through with the proper protocol of filing. And if he did say these things, why should he not have said these things? He suspected that the government would kill him so he had to defend his right to live.

The two were arrested in October 2007 -- no shots fired -- by U.S. marshals pretending to be supporters who pounced on the couple while sharing pizza with them on their front porch.

Nice. Entrapment. The Browns should prosecute.

During the trial, Ed Brown testified the weapons were for self-defense, saying he believed the government planned to kill him and his wife. He said he didn't start building the bombs until after federal agents made a failed attempt to arrest him. Prosecutors said many weapons were there already. He also said the property was booby trapped to scare intruders, not harm them.

Counted among the charges against the Browns were many counts of conspiracy. What about the conspiracy the Federal Government, in concert with the Federal Reserve and the IRS, is engaged in against the private sector sovereign citizens of the several states? It must be nice to be able to stand behind the law.

What I enjoy most are the comments posted below the article. Reading these comments, you get a sense of how dumbed-down Americans have become and how willing they are to believe their media outlets as if the journalists who write for them are the disciples of Christ.

I'm not going to pollute my post with their utter nonsese but please do read them for a light laugh if your pity for them doesn't keep you from enjoying their ignorance. As for some of the posters.... couldn't we just execute them for treason?

H1N1 Swine Flu Appears Similar to 1918 Pandemic Virus; WHO Recommends Vaccines Use Live (Attenuated) Influenza

An interesting story over at NaturalNews. My only complaint is the broad generalizations and there are only few. Also, I'd like to see more than just a few authors writing articles.

The story follows for your consideration. I would suggest that one subscribe to the website.

(NaturalNews) Two shocking bits of news about the H1N1 swine flu virus emerged this week. The first is that the widely-circulating swine flu virus may be a lot more dangerous than people have so far been told: It appears to resemble the 1918 pandemic virus in the fact that it is capable of embedding itself deep in lung tissue and causing deadly infections. This is very different from the more common "seasonal flu" which does not replicate in the lungs.

Explaining this concept, lead researcher Yoshihiro Kawaoka of the University of Wisconsin wrote in the journal Nature: "When we conducted the experiments in ferrets and monkeys, the seasonal virus did not replicate in the lungs... The H1N1 virus replicates significantly better in the lungs."

As Reuters reports, Kawaoka also added, "There is a misunderstanding about this virus... There is clear evidence the virus is different than seasonal influenza."

The 1918 influenza pandemic killed at least 40 million people globally (and probably many more). Also remember: That was a time when obesity was extremely rare. Today, obesity is alarmingly common among first-world nations, and obesity is now suspected of making a person highly susceptible to swine flu fatalities (http://www.naturalnews.com/026602_p)

World Health Organization gets aggressive with vaccination recommendations

Meanwhile, the World Health Organization -- always a trusty friend of Big Pharma -- has announced that swine flu is "unstoppable" and is now directing all the nations of the world to vaccinate their citizens against the H1N1 influenza strain. This is essentially an order for global mandatory vaccinations.

And yet, at the same time the WHO is recommending mass global vaccinations against the swine flu, it also states on its own website that such vaccines have never been proven safe. In its own words (http://www.who.int/csr/disease/swin):

[Emphasis added] "Since new technologies are involved in the production of some pandemic vaccines, which have not yet been extensively evaluated for their safety in certain population groups, it is very important to implement post-marketing surveillance of the highest possible quality. In addition, rapid sharing of the results of immunogenicity and post-marketing safety and effectiveness studies among the international community will be essential for allowing countries to make necessary adjustments to their vaccination policies."

In other words: Use the people as guinea pigs and see who dies first!

It's not difficult to decode the WHO's language in this case. The vaccines aren't safe, so they're recommending that people given the vaccines be watched closely to see what happens (who dies).

And just to make sure more people die, the WHO is also recommending such vaccines use "live attenuated influenza."

As stated on the WHO's website:

"In view of the anticipated limited vaccine availability at global level and the potential need to protect against "drifted" strains of virus, SAGE recommended that promoting production and use of vaccines such as those that are formulated with oil-in-water adjuvants and live attenuated influenza vaccines was important."

Inject yourself with live attenuated influenza!

What, exactly, is "live attenuated influenza?" It means live viruses that have been weakened, but may still pose a danger to human health.

Big Pharma, of course, is more than happy to comply with this order... they're getting paid billions to make the live influenza vaccines, after all. Notably, Baxter Pharmaceuticals has already been caught inserting live avian flu viruses in vaccine materials, and other drug companies are only too happy to follow suit. (http://www.naturalnews.com/025760.html)

But why, you ask, would governments want to inject their populations with live attenuated influenza DNA? And why would the World Health Organization aggressively promote such a measure, especially since the number of swine flu fatalities so far is exceedingly small?

There are numerous theories on that. I don't claim to know the right answer, but here are some of the theories being talked about by people in the know (people who aren't fooled by Big Government / Big Pharma propaganda):

The population control theory: The swine flu was engineered in a lab, then released in Mexico City precisely to cause a public reaction where people and lawmakers would demand global vaccinations. Those vaccines, in turn, would be intentionally laced with live virus samples designed to kill a large number of people and reduce the global population. All the deaths, of course, could be blamed on the virus; and the drug companies would get rich in the process!

The Big Pharma profit theory: Swine flu vaccines are being pushed globally in order to funnel more profits into the hands of the drug companies. And the more people get sick from the "live attenuated viruses" in the vaccines, the more repeat business the drug companies make from sick patients!

The chemtrail / vaccine binary poison theory: Chemtrails have exposed the populations in major world cities to the first half of a binary poison. The mandatory swine flu vaccines will complete the binary recipe, poisoning people with another seemingly innocent cocktail of chemicals that just happen to combine with the chemtrail poisons and result in widespread death.

The do-gooder theory: [This is a favorite theory of doctors, drug company reps and public health authorities.] All those conspiracy theories are bunk. These vaccines are being forced onto you for your own good by an industry that cares about people and only has your best interests in mind. Profits and power have nothing to do with it. Your government is trying to protect you, didn't you know?

Walking virus incubators

Ninety-nine percent of the U.S. population believes the do-gooder theory, and they will gladly allow themselves to be injected with anything the government recommends (especially if people start dropping dead this fall and the population can be scared into lining up for swine flu shots). The upshot of all this is that ninety-nine percent of the people will then be carrying live "attenuated" swine flu genetic materials in their blood, creating the perfect opportunity for further recombining with seasonal flu.

Global mandatory swine flu vaccinations will, in fact, create a population of infected swine flu carriers. Some of them will die in the 48 hours following the injections. Most will manage to survive the shots and go on to become carriers of swine flu genetic material. With their immune systems weakened by vaccine chemicals and processed, nutrient-depleted junk foods, they will serve as walking incubation vessels for the next sweeping strain of influenza.

And no matter what happens, Big Pharma makes money! The more people die, the more power the government is able to grab through vaccine mandates, forced quarantines, declarations of Martial Law and other similar measures. A pandemic is the perfect opportunity to destroy whatever remaining freedoms the American people still cling to.

My advice? Be prepared to protect yourself from the coming wave of gunpoint medicine (forced vaccinations). Both your health and your freedoms may soon be at stake. Keep reading NaturalNews for more information on how to protect yourself from not only swine flu (which is easy), but also your own government's ill-conceived swine flu vaccination mandates (more difficult).

As this situation unfolds through the fall of 2009, we'll post more information about what you can do to protect your health freedoms from the global pharmaceutical machine that wants to inject you with "live attenuated influenza."

Medvedev Unveils “World Currency” Coin At G8

http://www.prisonplanet.com/medvedev-unveils-world-currency-coin-at-g8.html

In a highly symbolic moment at the G8 summit in Italy today, Russian President Dmitry Medvedev unveiled to reporters a coin representing a “united future world currency”.

“We are discussing both the use of other national currencies, including the ruble, as a reserve currency, as well as supranational currencies,” the Russian leader said at a news conference.

However, those who have downplayed the formulation of a world currency by dismissing it as merely a progression of SDR’s (Special Drawing Rights) and not something that would physically be used by citizens in a system of world government, were contradicted when Medvedev clearly outlined that the new currency would be “used for payment” by citizens as a “united future world currency”.

“This is a symbol of our unity and our desire to settle such issues jointly,” Medvedev said.

“Here it is,” Medvedev told reporters today in L’Aquila, Italy, after a summit of the Group of Eight nations. “You can see it and touch it,” reports Bloomberg.

The question of a supranational currency “concerns everyone now, even the mints,” Medvedev said. The test coin “means they’re getting ready. I think it’s a good sign that we understand how interdependent we are.”

Press images released to the Yahoo photo wire did not show any close up shots of the coin and little was known about it, except that it had been minted in Belgium and bears the words “unity in diversity”. An RIA Novosti report noted that the coin represented an example of a “possible global currency”.

China and Russia have repeatedly called for a new global currency to replace the dollar.

When confronted about plans to supplant the dollar with a new global currency, both Federal Reserve chairman Ben Bernanke and Treasury Secretary Timothy Geithner denied that such an agenda existed.

However, just days after he told a Congressional hearing that there were no plans to move towards a global currency, Geithner sought to please the elitist CFR by assuring them that he was “open” to the notion of a new global currency system.

The scandal-ridden and highly secretive Bank For International Settlements, considered to be the world’s top central banking power hub, released a policy paper in 2006 that called for the end of national currencies in favor of a global model of currency formats.

The global currency would be a key central plank of a future system of world government. Earlier this week, Pope Benedict called for a “world political authority” to manage the global economy.

Where, Oh, Where, Did That Little Blog Go?

That vacation of mine really threw me through a loop there. I've been neglectful about my blog.

Posts coming.

On Vacation

I'm on vacation bloggers. I haven't been posting within days. I'll try to post some stuff while on vacation. I'll be available after the fourth. I'd like to get back to the blog.

The Erosion of the Dollar and the Rise of the East

http://jessescrossroadscafe.blogspot.com/2009/06/erosion-of-dollar-and-rise-of-east.html

The outcome of the push for globalization is a severe decline in the median standard of living in the US and an erosion of those individual liberties and freedoms which has made the US somewhat unique on the vast historical sweep of world history.

Few understand this. One cannot be completely sovereign when the push for 'competitiveness' is used to consistently erode the commitment to individual freedom.

David Rockefeller, and Sam Walton, and Bill Gates, looked at the social and economic structure of the People's Republic of China and saw the new American paradigm. Not in the evolution of China to democracy and freedom, but in the subjugation of the United States to huddled masses docilely wearing the yoke of debt subservience to the ruling elite.

Too much speculation in this? The pattern of behaviour of those who promote this canard of globalism is too obvious to ignore.

The banks must be restrained and balance must be restored before a sustained economic recovery can be achieved.

The rest of Jesse's piece can be read at his website, provided in the link above the text.

Blacklisted by History - The Untold Story of Senator Joe McCarthy

I just recently purchased this book - Blacklisted by History: The Untold Story of Senator Joe McCarthy - and I recommend it.

I checked in the index and did not see Eustace Mullins listed. Odd, considering Mullins was McCarthy's personal research assistant. You would figure someone like M. Stanton Evans, historian that he is, would've came across Eustace Mullins in his research. Mullins himself has been writing a biography of his very own on the Late Great Senator, reportedly. I have not been able to get my hands on a copy of it myself and do not know the status of its publication.

I've read a few chapters of this book before through the local library. I remember that when I read it I developed the feeling that M. Stanton Evans was under the impression that the Cold War was an actual threat to America's national security. Of course, I'm going to have to reread the chapters I've already read and then read the rest of the chapters so that I can get a complete understanding.

I know that Eustace Mullins would disagree with Evans if Evans argued that the Cold War was real. Mullins wrote a piece on the Cold War and explained how it was a fraud concocted by those who were of the employ of the Federal Reserve, which I plan to reprint here in the future.

Obama Regulatory Reform Plan Officially Establishes Banking Dictatorship In United States

An article worth reprinting in spite of the Alex Jones stain.

Paul Joseph Watson & Steve Watson
Prison Planet.com
Thursday, June 18, 200

President Obama’s plan to give the privately-owned and unaccountable Federal Reserve complete regulatory oversight across the entire U.S. economy, which is likely to be enacted before the end of the year, will officially herald the beginning of a new form of government in the United States - an ultra-powerful banking dictatorship controlled by a small gaggle of shadowy and corrupt elitists.

The new rules would see the Fed given the authority to “regulate” any company whose activity it believes could threaten the economy and the markets.

This goes a step further than the centrally planned economies of the Soviet Union or Communist China, in that the Federal Reserve is not even accountable to the U.S. government, it is a private entity that according to former Fed chairman Alan Greenspan, is accountable to nobody but the banking families that own it.

Obama’s regulatory “reform” plan is nothing less than a green light for the complete and total takeover of the United States by a private banking cartel that will usurp the power of existing regulatory bodies, who are now being blamed for the financial crisis in order that their status can be abolished and their roles handed over to the all-powerful Fed.

According to an Associated Press report today, Democratic leaders have committed to enacting the plan before the end of the year and Republicans in both the House and Senate have indicated that they won’t stand in the way of the overhaul.

“The final plan….is expected to sidestep most jurisdictional disputes and simply impose across the board standards to be applied by all financial regulators, according to administration and industry sources, ” reports the Washington Times.

In other words, the Fed, which is already totally unaccountable to Congress, is to be placed in complete control of the entirety of the U.S. financial system, to do as it wishes without repercussion.

As the LA Times reports, the government, in conjunction with the private Federal Reserve, would effectively have the clout to simply seize and take over any company it desires.

In order to appease those opposed to the plan, such as Sen. Christopher J. Dodd, chairman of the Committee on Banking, Housing and Urban Affairs, the Obama administration has agreed to create a “watchdog” council of regulators to “advise the Fed”.

However, as former chairman Alan Greenspan has most recently pointed out, given that the Fed is an independent entity, and therefore accountable to no one, it will have the power to simply reject and overrule any advice it is offered.

Pointing out the flagrant conflict of interest in empowering the Federal Reserve to essentially regulate itself, Professor of public affairs at the University of Texas at Austin Robert Auerbach writes, “The Federal Reserve has massive conflicts of interest that make it ill suited for its present regulatory functions and certainly for an expanded regulatory reach. The officials leading the Fed today preside over an organization that is run in substantial part by the bankers they regulate. Bank regulation begins at its 12 district Federal Reserve Banks, each governed by a nine-member board of directors, two-thirds of whom are elected by the bankers in the district.”

As economic author Nomi Prins highlights, Obama’s plan does nothing whatsoever to fix the excesses of financial institutions blamed for the financial collapse, it only ensures their continued operation and an expansion of the practices that contributed to the economic crisis in the first place.

“The ’sweeping overhaul’ of the financial system detailed by Geithner on behalf of the Obama administration does not overhaul the system at all,” writes Prins, “giving the Fed a bigger role, creating a ‘council of regulators’ to oversee the existing oversight bodies and allowing the biggest Wall Street players to maintain their status, leaves the system intact.”

“The Federal Reserve is not a fully public entity. It has amassed a set of $7.87 trillion worth of facilities and other entities through which it has lavished cheap loans in return for questionable collateral from the banking system. It has kept the true nature of these transactions a secret despite numerous FOIA requests. And, it has actively promoted the creation of bigger institutions in a chaotic environment, rather than putting the brakes on the creation of these giants,” concludes Prins.

Proof that the agenda of implementing overt financial dictatorship is being carefully coordinated can be seen in the fact that an almost identical scheme is also being set up in the United Kingdom, where “The governor of the Bank of England has called for greater powers to allow it to fulfil its new role of promoting financial stability,” according to a BBC report.

Just as in the U.S., King is calling for traditional independent regulatory bodies to be all but abolished and replaced by the Bank of England itself, which just like the Federal Reserve is a private outfit with no accountability to the government whatsoever.

The mainstream media, for the most part, has reported the oversight plan as a much needed regulatory crackdown on those responsible for the financial crisis. However, the details of the plan constitute almost exactly what lobbyists for leading bankers have been pushing for over the past few weeks.

“All derivatives contracts will be subject to regulation and all derivatives dealers subject to supervision,” Treasury Secretary Timothy F. Geithner said at a Time Warner Economic Summit in New York on Monday, also noting “When you have too many people involved, there’s an accountability problem.”

As we reported earlier this month, heads of nine of the biggest banks in the derivatives market, including JP Morgan Chase, Goldman Sachs, Citigroup and Bank of America, secretly lobbied to keep derivatives under Federal Reserve “oversight” and away from real scrutiny.

As reported by The New York Times, they all met secretly to discuss how to use the lax regulation and institutional secrecy of the NY Fed to shield their credit-default swaps business from prying eyes and attempts at regulation.

The banks formed a lobby– the CDS Dealers Consortium– only weeks after accepting TARP funds in October 2008 to protect its interests. Heading this effort was Edward Rosen, who previously helped fend off derivatives regulation. Rosen wrote and circulated a “confidential memo” to the Treasury Department and leaders on Capital Hill, making their agenda clear, the Times reported.

Rosen and his backers propose that derivatives be “traded in privately managed clearinghouses, with less disclosure,” according to the Times. The clearinghouse of choice for the big banks in Rosen’s CDS Consortium is ICE U.S. Trust, which is in turned regulated only by the Federal Reserve system.

So the upshot of all this is that the bankers get what they want, are allowed to carry on as they were, while at the same time the fractional reserve banking system and the federal government are both greatly expanded and empowered, and the compliant corporate media ludicrously tells us that a strict crackdown is underway.

This kind of activity is exactly what some leading representatives have warned of in recent weeks.

A fortnight ago, the Democratic Chairman of the Agriculture Committee, Collin Peterson, announced to the press that “The banks run the place,” in reference to the US Congress.

While Peterson is also pushing for legislation to regulate derivatives trading, his proposed bill would limit derivatives trading to public exchanges, rather than private clearinghouses, which are managed by banks.

Peterson’s warning mirrors that of Democratic Senator Dick Durbin, who just a few weeks before uttered the same rarely acknowledged truth.

“And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place,” Durbin said.

How simultaneously dangerous and ridiculous it is that the Federal Reserve is given more authority to oversee the economy. This is the same privately run entity that refused to comply with congressional demands for transparency and disclose the destination of trillions dollars in bailout funds. It is the same privately owned entity that has withheld internal memos, in spite of freedom of information act requests. It is the same private entity, run for the most part by European banking elites, that has arrogantly refused to tell Senators and Congressmen which banks were in receipt of government loans.

The government is ready to hand over everything to a monolithic private corporation and a gaggle of bastard banker offspring, that have gobbled up an amount close to the entire GDP of the country in taxpayers’ money and figuratively stuck the middle finger up regarding questions over where that money has gone.

It can be no more apparent than at this time that legislation to audit, repeal and eventually end the Federal Reserve, must be supported by Americans if they want to see their children and their grandchildren grow up without indentured debt and entrenched servitude to a fascistic marriage of private banks and hugely inflated government.

BRIC, SCO Discuss "Super-Sovereignty" Currency, USD Alternatives

A little insight into the internal mechanics of China's changing financial policies. What does this mean?

BRIC, SCO Discuss "Super-Sovereignty" Currency, USD Alternatives

China continued to consider a “super-sovereignty” currency among the countries of Shanghai Cooperation Organization (SCO), an intergovernmental mutual-security organization that met today in the Russian city of Yekaterinburg, in the Urals at the division of Asia and Europe. Members include China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan, with India as one of its four observers.

Right after the SCO meeting, the BRIC country (Brazil, Russia, India and China) leaders met formally for the first time. It is not merely coincident that three of them have expressed a desire to adjust their foreign exchange reserve portfolios by reducing the share or volume of US dollar assets.

China has just halted the increase its holding of US Treasury debt. By the end of April, China held $763.5 billion of it, a fall of $4.4 billion, month on month, the first time China has reduced its Treasury holdings. Since May, 2008, China has increased its holding by $260 billion.

Inside China, USD is a hate-more-than-love story. Analysts have long argued that China should be very cautious on buying US government bonds since dollar is bound to weaken. Others hold that US treasury debts are still the best and first choice for China's near $2 trillion foreign exchange reserve.

In March, Madam Hu Xiaolian, the chief of China's State Administration of Foreign Exchange and a deputy governor of the People's Bank of China, China's central bank, said that investing in US national debt is an essential part of China's reserve management. But while continuing to buy US national debt, China is concerned about the risk of the fluctuation in value of its assets.

China has announced that it would buy up to $50 billion in bonds issued by the International Monetary Fund (IMF). Meanwhile, Russia and Brazil have said they are planning to buy up to $10 billion in IMF bonds, which would mean selling Treasury bonds. India has expressed the same interest. In April, China, Russia, and Brazil all reduced their holdings of US treasury debt.

China now believes that a long-term dollar decline is inevitable, and the risk to the value of its $2 trillion foreign exchange reserve has become realistic, if not imminent.

China has been a huge beneficiary of the order of the world economy and a monetary system with the US dollar as the reserve currency. China's economy has been anchored by a stable dollar exchange pegged by China's currency, RMB.

But the financial crisis has given China a wake up call that the present monetary system is not sustainable, and neither is China's foreign exchange regime and mode of economic growth, which has been largely based on relentless exporting.

What, then, is the role RMB can play in the future? Russia has been urging China for years to settle their bi-lateral trade in their respective currencies. Brazil intends to trade with China by RMB and the real. Recently Russia suggested making RMB convertible to become an international reserve currency.

China can not challenge US directly. The BRIC summit is a convenient platform for China and the other BRIC powers, set to become the 4 of the 6 largest economic entities by 2050, to put a bit of pressure on the US. Held before the first China-US Strategic and Economic Dialogue in late July in Washington DC, the BRIC summit may give China some leverage in dealing with the US.

Russia is ready to use its exchange reserve to buy securities issued by BRIC countries. In return, Russia hopes the others will be willing to buy financial instruments issued by Russia. The leaders discussed increasing of the share of settlement currencies for trade among them. They also discussed adjusting their reserve assets portfolio in a coordinated way.

At the SCO meeting held just before the BRIC summit and attended by China, Russia and India, China proposed to research the feasibility of using a super-sovereignty currency among SCO member countries.

Kazakhstan president Nursultan Nazarbayev proposed that trade among SCO countries be settled by currencies of member countries. He also suggested that a super-sovereignty currency used inside the SCO eventually become a SCO reserve currency. Russian President Dmitry Medvedev also supported the idea.

Pro-Israel Mouthpiece Says Freedom of Speech Dangerous

JINSA’ article says outlets who oppose future wars should be silenced—killed if necessary—by military strike

By Michael Collins Piper

ONE OF THE MOST INFLUENTIAL voices of the pro-Israel lobby has published a shocking essay suggesting that, in the future, there should be “military attacks” on journalists and media outlets that oppose American military ventures on behalf of Israel.

In the spring 2008 issue of its Journal of International Security Affairs, the Jewish Institute for National Security Affairs (JINSA), a particularly vocal force of the Jewish lobby, published a series of articles devoted to the subject: “The U.S. Military Faces the Future.”

One article, entitled “Wishful Thinking and Indecisive Wars,” written by Ralph Peters (described as “a retired U.S. Army officer”) states flatly that “Although it seems unthinkable now, future wars may require censorship, news blackouts and, ultimately, military attacks on the partisan media.”

The JINSA essay says “Freedom of the press stops when its abuse kills our soldiers and strengthens our enemies. Such a view arouses disdain today, but a media establishment that has forgotten any sense of sober patriotism may find that it has become tomorrow’s conventional wisdom.”

JINSA’s suggestion that the media in America opposed the U.S. invasion of Iraq—a key demand by Israel and JINSA—flies in contrast to the truth. In fact, the major media banged the drum for war. AMERICAN FREE PRESS and a few independent newspapers strongly opposed this needless war.

So what JINSA is saying is that those independent media voices—such as AMERICAN FREE PRESS—that opposed the drive for war should ultimately face military violence if they oppose the Jewish lobby’s future military aims.

One analyst, University of Pennsylvania Prof. Edward Herman, has described JINSA as “organized and [run] by individuals closely tied to the Israeli lobby and can be regarded as a virtual agency of the Israeli government.”

JINSA was founded in the mid-1980s by Stephen Bryen. He, along with several of his close associates—including future George W. Bush administration officials Richard Perle, Paul Wolfowitz and Douglas Feith—was investigated by the FBI on charges of spying for Israel at various times. JINSA has worked to forge alliances between the Jewish lobby and former American military officials, treating them to international junkets and a variety of business and other financial bonanzas provided by Israeli sympathizers in America and around the globe in return for support for their blatantly pro-Israel policies.

Peters—whose pro-Israel articles are published regularly in The New York Post, owned by pro-Zionist billionaire Rupert Murdoch—is just one of those whose views on the military appeared in JINSA’s journal.

A recurring theme in the essays emphasized the need for the United States to coordinate its international ventures with its “allies,” that is, Israel. The essays underscore the idea that it is vital for the United States to engage in covert action to bring down regimes that stand in the way of Israel’s agenda. Written in “code,” so to speak, the essays carry the theme that Israel’s interests are those of America and vice-versa and that those who oppose Israel are “anti-American,” and that includes American military officers.

An essay by one Patrick Poole alleges that the distinguished Strategic Studies Institute at the U.S. Army War College is in the state of “strategic collapse” because it published a study saying that Hamas, the Palestinian faction, has been misunderstood due to misreporting by what the War College report says are “Israeli and Western sources that villainize the group.”

JINSA’s propagandist claims the War College “is only representative of a larger rot in the U.S. military’s halls of higher learning . . . [that] apparently runs through all levels of our military senior service schools. . . .”

The author of these attacks on American military leaders who refuse to pander to the Jewish lobby, Patrick Poole, is a ubiquitous Internet presence, writing pro-Israel screeds for Frontpagemag.com, the website of ex-communist-turned-neoconservative pro-Israel publicist David Horowitz. (Mister Goldbug - Don't you just love that? David Horowitz goes from being a communist to being a "Trotskyite neoconservative" (ref. Eustace Mullins).)

The record shows that increasing numbers of American military figures, and a host of ex-diplomats, intelligence officers and others are publicly challenging the Jewish lobby. They include Adm. “Fox” Fallon, former ambassadors Charles Freeman and Richard Peck, ex-CIA officers Michael Scheuer and Ray McGovern as well as top academics such as Dr. John Mearsheimer and Dr. Stephen Walt. And former President Jimmy Carter as well.

It is thus no surprise that influential Jewish voices, such as Forward, published in Manhattan, complain there is opposition to Israel within higher circles, a point that surprises many Americans who believe Israel has a firm stranglehold on the American intelligence, diplomatic and law enforcement apparatus.

On May 11, 2005, Forward reported that Barry Jacobs of the Washington office of the American Jewish Committee said there were high-ranking officials in the U.S. intelligence community who were hostile to Israel and unreceptive to pro-Israel lobbyists.

Citing the then-ongoing FBI investigation of espionage by officials of the American Israel Public Affairs Committee (AIPAC), Forward noted that this top Jewish leader believed, in Forward’s summary, that “the notion that American Jews and Pentagon neo-conservatives conspired to push the United States into war against Iraq, and possibly also against Iran, is pervasive in Washington’s intelligence community.”

Although the Justice Department recently dropped its case against the AIPAC duo, the FBI investigators remained confident that their criminal case against the intriguers would have resulted in a conviction.

It has been a long-standing concern of JINSA that many in the military are tired of fighting wars for Israel. In the fall of 2006, JINSA’s journal suggested that a full-fledged witch-hunt was in order, designed to root out critics of Israel at high levels, implying that Israel’s critics were allied to “jihadist” fundamentalist Muslims. JINSA asked:

How deeply have jihadist elements infiltrated the U.S. government and federal agencies, including the Federal Bureau of Investigation, the Department of Homeland Security, the Department of Defense, and various military commands, either through sympathizers or via actual operatives?

Since there are few Muslims in the FBI, Homeland Security, the Department of Defense etc, the suggestion that “jihadist” elements have “infiltrated” our government might seem silly to the average American. But JINSA—determined to enforce Israel’s demands on American foreign policy and military might—is concerned that there are growing numbers in the military, the FBI and the CIA who are opposed to wars for Israel—and this, in JINSA’s view, constitutes collaboration with the dreaded “jihadists.”

http://www.americanfreepress.net/html/pro-israel_mouthpiece_178.html

Federal Reserve Hires PR Firm to Fight Audit

NERVOUS THAT ITS BACKROOM money dealings may soon come under public scrutiny, the Federal Reserve is reportedly bringing in the big guns in an effort to quash Rep. Ron Paul’s landmark “Audit the Fed” bill (H.R. 1207), which has garnered 208 cosponsors as this issue goes to press—nearly half the members of the House of Representatives.

A national news wire service reported in early June that Linda Robertson, who currently heads up public relations for Johns Hopkins University in Baltimore, has been brought in by the United States’ private central bank to polish its image.

Previously, Ms. Robertson served in top spots in both Republican and Democrat Treasury Departments. She also had a brief stint at the infamous energy company Enron, the Houston-based corporation that through fraud and deception, managed to fleece investors of billions of dollars.

Most notably, Ms. Robertson worked in the Treasury Department while Robert Rubin was secretary during the time in which the Glass-Steagall Act of 1933 was rolled back. Rubin’s Treasury worked with Congress to formulate legislation, which allowed banks to form massive financial institutions by merging with investment firms and insurance companies.

These same megabanks, which formed as a result of the new rules, have now cost U.S. taxpayers trillions of dollars in bailout money.

“Members of Congress have chafed at the Fed’s bold use of its emergency powers and in particular its multi-billion-dollar bailouts of investment bank Bear Stearns and insurer American International Group,” Reuters reported in an article that broke the news about the Federal Reserve’s new hire.

“Critics also bristle at the Fed’s practice of maintaining the confidentiality of the companies that borrow directly from the central bank on the grounds that divulging their names would risk runs on those institutions.”

As a result, says Reuters, the Fed will be bringing on Ms. Robertson to act as its point man when it comes to dealing with Congress.

In May, the federal government’s Inspector General for the Federal Reserve Elizabeth Coleman testified before Congress that she does “not have jurisdiction to directly go out and audit Reserve Bank activities specifically.”

Rep. Paul has already stated that the intention of his bill is to open “all Fed operations to a GAO audit and calling for such an audit to be completed by the end of 2010, the Federal Reserve Transparency Act would achieve much-needed transparency of the Federal Reserve.”

Federal Reserve Hires PR Firm to Fight Audit