Still, the United States of America

                                                                                          D. Stewart Armstrong

February 15, 2011

I would encourage all to recognize

the most severe problems facing America; the most critical being:

The LACK OF SOLIDARITY

AMONG THE AMERICAN PEOPLE

A preface

“The longest journey begins with the first step” is an ancient Chinese proverb.

But where do we begin? I think the appropriate answer is that it’s up to each and every one of us!

When, where, and how do we take that first step and in what direction?

Where will our journey take us and why do we even want to go there?

How will our journey affect the ones closest to us?

How will it be of benefit to others? Will it be a physical or metaphysical journey? Both?

Remember, in 1776 our Country was birthed in blood. Make no mistake—people were just as violent and sadistic back then as they are now; perhaps more so. Being tarred and feathered and run out of town on a rail for your political beliefs was no picnic. We’re beyond that now. As the country has developed, the methods of governing, intimidating the opposition, and gaining power have changed. We must not fool ourselves. The United States of America has always taken what it has wanted. First it took the land by force from the indigenous populations of the continent. Then it took other parts of the country by eminent domain. Then it took what it wanted from the foreign entities looking to gain a foot hold .in the country. Like I said, America has been birthed in blood.

We are now at a crossroads of history in the cross hairs of truth. The world is changing. It is February 22, 2011 and Libya’s Kaddafi is machine gunning his own people as they try desperately to throw off the yoke of repression. How many times have we seen this movie? We’ve been instrumental in the shifting of the winds in the Middle East. The United States has killed entire Indian villages because “we had the perceived, self-induced right” of Eminent domain on our side. Besides, they were savages. Hundreds of years later in Vietnam, we used Agent Orange and napalm to wipe out entire villages.

What is the common denominator? Most American citizens would have been against the idea of mass murder if it was offered on a one on one choice. Collectively, when faced with spin and lies, there is a tendency to “go along to get along”. After all, we are sheeple.

But, we are who we are. It’s in our DNA; the good, the bad, and the ugly.

We are being offered choices once again. I pray that the Nation chooses wisely and has learned from its historical mistakes. Once again, the citizens are at a crossroads. The politicians will never change. A little taste of power is like blood to a Vampire–and in this case the Power Elite is the “Vampire” and the Sheeple represent the blood. Yes, its a gruesome metaphor but we are facing a gruesome future. And make no mistake, these have been planned scenarios for the past dozen years—if not the last 100 years.

Our journey should be one of enlightenment and enlightenment is about truth. The truth will set you free. The United States is lacking truth on all levels and until truth returns, along with transparency, the die is cast. The Country will never return to its days of past glory, our standards of living will drop precipitously, and the lies and misrepresentations will become greater. However, we are all responsible for that truth and so we cannot sit back, point fingers, make accusations, and “sound off” without doing something positive and acting responsibly. To some degree we control our own destiny and to really control that destiny we need to unite in search of that great universal truth within the Republic.

The great universal truth is

THE ABSENCE OF GOVERNMENT is FREEDOM!

We are in the horrendous predicament in which we find ourselves because we have not personally been politically active on a regular, if not a daily basis. We have given the Power Elite, our Congressional Representatives, the Fascists, the opportunity of trampling our rights and stealing our freedoms because we as a Nation have been lazy. Until we begin talking to one another instead of at one another the situation will not improve. The outcome is now up to us.

Many honorable Americans are trying to help us understand the truth as it affects the country, as it affects our lives. The main entity that does not want us to know the truth is the Government of our own Country. That is why men like John Williams of ( www.shadowstats.com ) are so vital to the truth and subsequently, to this Nation’s health. He takes the “numbers”, deciphers them and gives them back to us in a more accurate measure. He tells us the truth. That is a journey of enlightenment.

The Great Fight

The Great Fight is centered along the lines of finances (money versus wealth), jobs (exporting them along with our manufacturing base), and Commodity Manipulation (Gold, Silver, and Food). The great fight centers along the lines of “fake left, go right”. That means the use of weapons of mass distraction.

So let’s cut to the chase because time is precious. I would like you to remember these things in particular:

• Americans need to get their act together and join a political movement outside the two party system.

• Americans need truth in government and we need to follow the constitution, not change it.

• Americans need a way to earn a living and as the global economy shrinks, it will become more difficult. You and I will need to be creative. We will barter, produce, and grow. But mostly. We must learn how to trade—like the banks trade. There is one site in particular that will assist you in this endeavor.

• Money is different than wealth. Money is paper dollars; wealth is gold and silver. Wealth is farmland, diamonds, art, and energy.

• The Power Elite is after the One World Government and we, the average citizen are both in their way and necessary to consummate their end game—world domination and neo-feudalism.

• If we do not find a way to define our similarities as opposed to our differences, I fear all is lost. In all areas of American life we need to find a vehicle which allows us to stand united. It needs to be simple, effective and most importantly it needs to be truthful and transparent. We are going to have to trust in at least one entity before the Mad Max society encompasses all of us

• .But wait! There is such an entity, its called The United States Constitution! Dr. Constitution will save us if we allow it, encompass it, support it, read it, and understand it.

• We cannot resort to violence because to do so would be to play into their hands. We can defend ourselves but we can never be the aggressors. read more

2-8-2011

By Scott Silva

Editor, The one-handed Economist

What motivates people to lie? Is lying instinctive, present at birth, part of human genetic makeup, or is it learned behavior, an acquired skill necessary for survival.

Certainly deceit is a vital part of survival. We know from nature, without cunning and deceit, the stalking lion goes hungry; the octopus changes its color, blending into the background to evade predators. This natural behavior allows the species to live for another day; life, and the species, goes on.

Some lies people put forward are crimes. Perjury or lying under oath is a crime. In fact, it is a felony that carries a 5-year prison sentence if one is judged to have lied to the FBI or to Congress. Making a false statement to a police officer is a misdemeanor.

But when the government lies to its citizens, few prison sentences have resulted.  And the US government lies to us all the time. In fact, officials lie so often, and in so many ways– print, speech, social media, reports, alerts and images—that people are lulled into believing The
Big Lie. This is not just another conspiracy theory; the evidence is all around us. The government is stealing our wealth and freedom with every lie it utters.

For example, one would think that the Federal Reserve, the US Treasury and the Department of Labor work to safeguard the value of US currency and enhance prosperity of US citizens.  These are important agencies of the government; their leaders must be confirmed by the US Senate. But the vetting process does not prevent the Fed chairman from understating the money supply or the Department of Labor from grossly understating the inflation rate.  These measures are linked. That is, excess liquidity causes prices to rise.  The Fed has added an unprecedented $2.3 Trillion to the money supply over the last three years. At his first press conference last week Chairman Bernanke maintained that inflation is “controlled at very low levels.”

The Bureau of Labor Statistics keeps the books on inflation. According to its January 14, 2011report, the Consumer Price Index (CPI) rose 0.5% in December, and 1.5% for the trailing 12 months. But embedded in the low increase are many “offsets” that on inspection are pretty flimsy. For example, 23.9% of the CPI index is made up of what is considered “owner’s equivalent of rent.” This is one of the largest percentage items in the entire basket of goods that make up the CPI.  Until the early 1980s, the CPI used the asset price method (You Get What You Pay For) to measure the change in the costs of owner-occupied housing. The new measure is subjective; the value of the rent that a given property might fetch is typically a much lower value.

In another example, the BLS takes credit for “productivity savings” for higher performance consumer goods, such as laptop computers,  that sell for about the same price as those purchased one or two years prior. The consumer cannot spend the “savings”, but the BLS subtracts the value from the consumer survey results.

The most egregious BLS whopper is how it accounts for food and fuel prices. It doesn’t. It removes food and fuel components from the CPI, and calls the smaller number the  “Core CPI” on the weak excuse that food and fuel prices are too volatile, that is, they tend to rise (or fall) too quickly to fit neatly into economic models. When was the last time food or fuel prices declined too quickly for any consumer?

Intentionally misrepresenting the magnitude and rate of change if the money supply and price inflation debases the currency and imposes a “secret inflation tax” on everyone holding US Dollars and dollar denominated securities.  As the chart on the right indicates, the US Dollar has lost 35% of its value in the last ten years. Food and commodity prices have skyrocketed here and around the world, contributing in part to popular uprisings in Tunisia, Egypt, Jordan and elsewhere.

read more

By James West
MidasLetter.com
January 10, 2011

2011 is just underway, and already, confusion reigns. My mother fell on her head at Machu Picchu and some kid in Arizona killed some decent folks in Arizona. My dog is in heat and its summer in Lima. See what I mean?

Ten days into the new year, there has rarely been a time when market commentators have been so thoroughly polarized in terms of the prospect for the immediate future. While the range of optimism to pessimism is exactly as broad as ever, the camps are crowded at either extreme of the scale, with the middle viewpoint, moderate and/or ambiguous, virtually uninhabited.

In the happy smiling optimist’s camp, the crisis is over, the stock market is poised for huge gains, the missing recoveries in housing and jobs is right around the corner, the sovereign debt issue is over and the Euro remains intact. Chinese growth continues to support the whole global enterprise and is indestructible.

In the basement regions of gloom and doom, the Euro will go bust as the sovereign debt crises spread and flames rage unchecked through the matchstick superstructure of the flimsy Euro currency zone. Energy prices will soar, crippling economic growth and recovery in G7 – 20 economies, and the American dollar as a viable currency will itself fall apart in a disintegration caused by the sheer excess of its swollen volume. Or it will become the hated only viable choice as every other currency becomes too risky.

Gold is either in a huge bubble on the verge of collapse, as is silver, copper and platinum, or, the monetary metals are in for continued strength and price appreciation as the resumption of widespread economic recession and dollar-driven hyperinflation kneecaps growth prospects and credit markets again freeze. The regulatory reforms that seemed inevitable as 2010 came to a close, like position limits in the commodities futures markets, actually become a loosening of the nearly non-existent regulations in a perverse Orwellian twist of fate. Wall street continues to gush paper profits and ethereal Dow and S&P numbers scale new heights as the fake money begets more fake money through derivatives position cellular expansion.

Does one cash out of the stock market in anticipation of the coming collapse, or load up on commodities, and the companies that explore for and produce them? Or do we abandon commodities for technology and financial stocks that will be the beneficiaries if a real recovery materializes? If we do cash out, which cash should we denominate our hideout in? Dollars, yuan, yen, euros… or gold, silver, platinum and palladium?

Charting a course through this tempestuous investment sea is going to be tough. But, as usual, opportunities will abound for those armed with clear vision and thinking. The risks and threats must be prepared for as if they were inevitable, as the odds are slim that none of them will manifest themselves as major losses for the ill-advised.

Following is our list of top threats, and the best defenses.

Major Threat #1: Sovereign Debt Contagion
Portugal’s cost of borrowing soared to new highs last week (+7%), as did the cost of insuring its debt. By some estimates, nearly 80% of the nearly 1 trillion euros in sovereign debt in the Euro zone will require re-structured financing. Greece and Ireland are now paying 80% of their export revenue out as foreign debt. Italy is much closer to collapse than most observers realize, and Spain and Portugal are sure candidates for bailouts. read more

 by Howard S. Katz

 The expression, “gold bug,” has two meanings. In politics, a gold bug is someone who favors the gold standard. The phrase was first used in the election of 1896 to indicate the supporters of William McKinley, who favored the gold standard, as opposed to the supporters of William Jennings Bryan, who favored adding silver to the system to increase the money supply. On July 9, 1896, Bryan gave a famous speech

“You shall not crucify mankind upon a cross of gold.”

 Then he went down to flaming defeat, not once but three times.

 In the 1960s, the phrase “gold bug” acquired a meaning in the speculative markets. It referred to a speculator who believed that the price of gold was going up. In this sense, James Dines was “the original gold bug.” As it happened, most gold bugs in the speculative sense were also gold bugs in the political sense, but it is important to distinguish between the two meanings.

 Readers of the articles in this web site are gold bugs in the speculative sense; however, we are about to enter a new period in American history where the two meanings become intertwined, and this is extremely important for anyone who wants to understand the financial markets. The decisive event occurred on November 17, 2010 when the Wall Street Journal ran an editorial entitled, “Ron Paul’s Golden Opportunity.” (WSJ, 11-17-10, p. A-19.)

 Now you all know what has been going on in the markets over the past few weeks. The Fed has begun another program of the massive printing of money, this one labeled QE2 and estimated to amount to $600 billion (although larger numbers are mentioned). If we consider the (more than) doubling of the U.S. money supply which has occurred between mid-2008 and November 2010, then QE2 will bring the total increase in money up to approximately a triple. And this leads me to expect an increase in consumer prices (from current levels) to approximately triple over the next 3 years. First, commodity prices will rise. Second, producer prices will rise. And finally, consumer prices will rise. The first phase of this has already started.

 As we all know, Bernanke’s QE2 has provoked a world-wide protest. Central bank heads and prominent (establishment) economists around the world have condemned it. There has been talk (in the Financial Times) of restoring the role of gold in the world monetary system. Most important, the Wall Street Journal has taken a number of pro-gold positions, the most important of which is the Nov. 17 article, mentioned above. read more

 by Howard S. Katz

Above is a chart of the price of silver over the past 10 years showing the move from $4/oz. to $26/oz. We call to the attention of Ben Bernanke that silver has been going up. Prices going up are not “deflation.”

 Www.bloomberg.com reported:

 “The U.S. central bank’s decision to buy $600 billion of government debt has drawn scathing comments from a host of nations who contend it is generating global instability by ramping up their currencies against the dollar, inflating asset bubbles ;and stoking inflation in their economies.

 “’With all due respect, U.S. policy is clueless,’ German Finance Minister Wolfgang Schaeuble said in Berlin.”

 Bloomberg.com, By Pedro Nicolaci da Cost, Nov. 5, 2010, 4:29; pm EDT

Bernanke defended his actions:

“Federal Reserve Chairman Ben Bernanke on Friday defended the U.S. central bank’s bond-buying against beggar-thy-neighbor criticism, saying it was ‘critical’ for global stability that the U.S. economy regain its strength.

 “Doing so, he suggested, would bolster a dollar whose weakness has sparked cries of foul from Bogota to Beijing.”

 Ibid.

 America is in very big trouble because the inmates are in charge of the asylum. Bernanke, for example, thinks that he is boosting the U.S. economy.

 How is it possible to improve the nation’s economy by counterfeiting money?

 Members of the paper aristocracy measure the nation’s economy by a statistic called Gross Domestic Product. Gross Domestic Product was invented in the 1930s by a Russian national who worked his way into the New Deal and devised the formula for GDP. He presented this without proof that it actually worked and measured the real economy. Hardly any American can pronounce his name. read more