Gold Silver Coin Blog

You really have to hand it to the banksters. As was painstakingly detailed in the book Creature from Jekyll Island, the banking elite devised a brilliant plan in November of 1910 on Jekyll Island in which to take over control of the United States, steal the wealth from the taxpayers and the resources from the country.

It was at this meeting that the Federal Reserve was conceived by the banking cartel, as they devised a plan to protect its member banks from competition and convince Congress and the American public that this cartel was an agency of the United States government.

The creation of the Federal Reserve will undoubtedly go down as one of the biggest tragedies in American history. After all, the government handed over the right to print the nation’s currency AND charge interest to a private, for-profit corporation with foreign stockholders. The Federal Reserve was given the right to simply print massive sums of money out of thin air and then charge the American taxpayer interest on that money.

In essence what they did was place the American people into indentured servitude by forcing the people to pay usury on worthless fiat currency (paper money created out of nothing), not to fund the government, but to enrich the bankers and fund wars in which America should never be involved. It has led to the massive unsustainable debt situation and the dollar losing 96% of its purchasing power since 1913. Stop and reflect on that last statistic for a moment. If you held $100 since 1913, it would only be able to buy you $4 worth of goods and services today! Or put another way, it would take $20 in today’s money to match what just $1 would have bought you in 1913. The rest of the value has been absorbed by the banking cartel and government. How on earth we still allow this institution to exist and operate in privacy is beyond comprehension.

Furthermore, It is absolutely unconstitutional, as Article 1, Section 8 of the Constitution clearly states that only Congress shall have the power to issue money. This view was confirmed in Lewis v. United States, 680 F.2d 1239 (1982), in which the Supreme Court ruled:

The Federal Reserve Banks are “independent, privately owned and locally controlled corporations”, and there is not sufficient “federal government control over ‘detailed physical performance’ and ‘day to day operation’” of the Federal Reserve Bank for it to be considered a federal agency.

As the United States debt-to-GDP ratio approaches 100%, the interest owed on the debt has become one of the largest annual budget items. The total U.S. debt according to http://www.usdebtclock.org/ has reached $56 Trillion or $180,000 for every U.S. citizen. This figure does not even include unfunded liabilities such as Social Security and Medicare, off-balance-sheet liabilities such as Fannie and Freddie and other liabilities that put the true total debt well over $100 Trillion. But let’s just use the $56 Trillion number for now.

The Federal Reserve conveniently stopped printing the total money supply statistic (M3) back in 2006. But since that date, a number of statisticians have extrapolated the number and come up with estimates that are widely believed to be in the ballpark. Using these numbers, the total amount of U.S. money outstanding is approximately $14 Trillion. If you divide 14 Trillion by the U.S. population of 310 million people, there is approximately $45,000 for every US person.

So, if the debt per citizen is $180,000 ($56 Trillion / 310 million people) and there is only $45,000 per citizen in existence, how can the debt ever be paid off? Even if we use the more conservative estimate of debt which is total public and private debt, we get $29.5 Trillion, which is more than DOUBLE the amount of dollars in existence.

The answer is that the debt CAN NOT be paid off. In fact, this is specifically how the banksters designed the system, so that everyone would eventually be in debt and servitude to them. Think about just how maniacal that is for a moment. But it gets worse…

You see, the government has already pledged all of America’s gold, which is surely no longer at Fort Knox as they haven’t allowed an audit in over 50 years. Even if the gold is still there, it now only represents a fraction of the annual deficit, let alone the total debt. Furthermore, the government will eventually have to pledge what is left of America’s public land, buildings and natural resources, privatizing everything from the Grand Canyon to Manhattan to Yosemite National Park.

On the individual level, since there will never be enough money for everyone to pay back their home mortgages, this means the banks will end up foreclosing on a huge portion of the real estate and housing that hard-working Americans own, a process which has already begun. So not only will the banking elite end up with all of the money, they will also end up with all of the land and resources of the once great United States of America. Sound alarmist? Consider this visionary quote from one of our nation’s greatest leaders:

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” -Thomas Jefferson

It is absolutely ridiculous that we have become so apathetic and brainwashed to be allowing this to happen right under our noses. This charade is going to end badly, either by default or hyperinflation and most likely with a high level of social unrest. Either way, the banksters have created a fiat money system that is absolutely destructive to this country, our freedoms and our way of life. If you are outraged, there are fortunately some things that you can do.

1. Move your money out of the big banks and into local community banks or non-profit credit unions. Because of fractional reserve banking, every dollar that you remove deprives the banks of $9 or more used for risky derivatives gambling where its heads they win, tails you lose.
2. Support a full audit of the Federal Reserve, sign the petition and write or call your local congressman. Voter action has already led to a partial one-time audit that recently passed the Senate, which is a good first step. But we need periodic full audits of exactly what the Fed is doing with taxpayer funds. The more the awareness is raised about the Fed, the better chance we will have of eliminating this institution one day and returning the right to print money to the Congress, INTEREST FREE!
3. Get out of debt and live within your means. We’ve had it good for a very long time and have been able to live beyond our means due to the dollar’s status as world reserve currency and easy credit. Those days are coming to an end, so you should do everything within your means to get our of debt while interest rates are still low. They will need to shoot dramatically higher one day, and you don’t want to have an adjustable rate loan of any type when they do. Establish your freedom from the banks and deprive them of their revenue (interest on your debt).
4. Invest in precious metals. The government’s most likely response to the debt issue and slowing economy is going to be to print money on a scale the world has never seen before. This will undoubtedly lead to hyperinflation, destruction of the U.S. dollar and skyrocketing prices for gold and silver, real money. In addition, the banks and their government bed buddies hate gold because it is out of their control. They can’t print gold or silver out of thin air and it is a threat to their fiat currency system and their very power structure. You should consider owning physical gold and silver and if you are enjoying the leveraged gains provided by mining stocks, make sure to occasionally convert those paper profits into more physical metal stored outside of the banking system.
5. Lastly, continue to learn and share this information with as many people as possible. We can take our country back and end debt enslavement, but we have to move beyond the two-party system and stop bickering over marginal issues. Both parties are completely corrupt and in the pockets of the banksters and megacorporations. None of this will change until we eliminate the Fed and eliminate money from our political system. The mainstream media is not going to tell everyone this, because they are owned and funded by the banksters and elites. The information must spread via the Internet at a grassroots level.

Jason Hamlin
Gold Stock Bull

Technorati Tags: banking, economics, economy, federal reserve, gold, honest money, Investing, markets, silver, stock, us banking system

My journey into economics began in 1956 when I was a sophomore at Harvard. A classmate was arguing with me that the Federal Government did not have to balance the budget. He was sure of this because his professor had told him so. 

My thinking was different. “If the Harvard Department of economics did not believe that we had to balance the budget, then they must be a bunch of idiots. I have nothing to learn from such people. I will learn my economics when I’m out of here  Good bye John Harvard.” 

Fourteen years later, in 1970, I knew that the price of gold, then $35, had to go up. After all, pretty much every good in the economic universe had tripled in price between 1935 and 1970.  By that time, I had learned about Adam Smith and the law of supply and demand. The decision by the U.S. Government to suppress the price of gold and keep it at $35 (along with its allies in the London Gold Pool) was the height of foolishness. Prices are determined by supply and demand. An important factor in the demand for all goods is the supply of money. And the supply of money had been increasing dramatically over the past 35 years. To anyone who understood the political situation at that time (and knew that the printing of money was going to continue, the conclusion was simple. All prices, most especially the price of gold (which had lagged most other goods), had to go up. 

The conclusion was simple, but few others understood it. Henry Reuss, at that time the chairman of the House Banking Committee, announced that the price of gold would fall to something on the order of $6 or $8 per ounce. Actually, gold briefly dipped a few cents below $35 in 1970, and then it was off to the races. 

The puzzling thing was that, as gold climbed above $800/oz. (in early 1980), the entire official economic community refused to admit that it had happened. It was one thing to fail to predict the rise in gold in advance. That merely shows one to be an incompetent economist. But these people failed to comprehend (or admit) the rise in gold AFTER IT HAD HAPPENED. This was no longer just a matter of being stupid. It was a matter of being so incredibly stupid that there is no word in the English language (or any other language) to describe it. 

Gradually I realized what had happened. Everybody in economics who had some kind of a title was a blithering idiot. None of them had any knowledge at all. Harvard had defrauded me when it told me that its professors were economists, and this same fraud was being perpetrated over the entire world on a much larger scale.  

Gradually I was able to piece together what had happened. When FDR took office in 1933, he rammed a bill through Congress (in one day) taking the country off the gold standard and giving the commercial bankers the privilege to create money.  They still have that privilege today.

 FDR’s claim to be a traitor to his class was a lie. FDR had been a Wall Streeter during the 1920s (running a vulture fund). That is, he was a Gordon Gekko type. He was buddy-buddy with the commercial bankers and relied heavily on them for advice. No, the real traitor to his class was Sam Craig, the “regular guy” New Deal supporter in the 1942 movie, “Woman of the Year.”  Sam never thought about politics. He was too busy with the baseball game. He swallowed every lie that the New Deal told.  (It is interesting to note that in the period of the American Revolution there was very little interest in sports and great interest in politics. That is part of what is meant by the “spirit of 1776.”)

 FDR did not rob from the rich to give to the poor. FDR (as noted) gave the commercial bankers the privilege to create money and used this to rob from the poor (i.e., Sam Craig) and give to the rich. The banker’s creation of money was controlled by the Federal Reserve (America’s third central bank), a Government agency controlled by the bankers.  The bankers secured these positions by bribing (excuse me, donating to the campaigns of) politicians.  Notice that during the “crisis” of autumn 2008 both McCain and Obama came up with the same solution. “The bankers ought to print more money.”  That money is being printed as we speak (which is why the current theory that there is a danger of “deflation” is nuts). 

As the bankers created money, general prices in the U.S. began to rise (and have risen pretty much steadily ever since 1933). The bankers were able to make more loans with this newly created money and profited from the interest on these loans. The bankers’ big loan customers were able to profit from the lower interest rates (which accompanied the creation of money). And Sam Craig found that he could buy fewer goods when he went to the store. But he was confused by the whole thing and did not want to take the time to think about economics or politics. So he voted Democratic anyway. Prior to the New Deal the average American working man increased his real wages by 60% in a 30 year period. (See the wage series in Historical Statistics of the United States, published by the Commerce Dept.)  In the next generation that slowed, and starting in 1972 it has been in decline. 

Now exactly where do we stand today? Above is a chart of the S&P 500. A simple glance at it tells you one important truth. For the past decade, stocks have been going down. 

Is there a word of this in all of the garbage that passes for economics today?  Not a breath. I listen to a local radio show which bills itself as the best financial show on radio. It sneers at gold as only a collectable, but it has had its followers in stock funds for the past decade. If this is the best, then it’s a pretty bad lot.

 Here is the chart of gold over the same period. Can you see it? Stocks down. Gold up. S&P 25% lower.  Gold 4 times as high. This has been going on for the past 10 years. And 99.9% of the people who have titles in economics and claim to be experts in the field still don’t know it.

 The reason for this is that, once the bankers acquired the privilege to create money out of nothing, they needed intellectual cover. They needed a group of intellectuals who would  explain to the public that allowing them to print money was for the benefit of the whole society. They found a couple of sycophants, William Trufant Foster and Waddill Catchings, who argued that paper money was the “road to plenty” for a society. Foster and Catchings were considered crackpots by the economists of the day.  Then Keynes entered the scene and put a little twist on the Foster and Catchings theory. He called it progressive and liberal. A collection of hacks and frauds then jumped on the Keynesian ship and are known as the economists of the mid-20th century.

 This is why VIRTUALLY EVERYTHING YOU HAVE BEEN TAUGHT IS A LIE. And all the authority figures to whom you look are charlatans or ignoramuses. Can you imagine a person who entered the field of economics after 1980? You had the gold bugs, who had been dramatically right. And you had the stock bugs, who had been dramatically wrong.  And who did these people choose to learn their economics from? They chose to learn their economics from the people who had been wrong.  So they graduate business school believing that we do not have to balance the Federal budget and that printing money does not lower its value. (Actually,  this happens in many areas of society.  If your marriage is in trouble and you go to a marriage counselor. Then you find that the counselor is divorced. He couldn’t save his own marriage.  Again, when Reggie Lewis collapsed on the basketball floor in 1993, the Boston Celtics hired a “dream team” of 12 cardiologists. One of the 12 cardiologists then died of the same disease for which he was treating Lewis.  He couldn’t even save his own life.) 

Who do you want giving you advice?  The divorced marriage counselor, the dead doctor or the establishment economist?  Who do you want?  The fellow with the title or the fellow who can do the job?

Well, here we are again. We went through this whole thing in the 1970s. The vast majority of the people listened to those with fancy titles. They lost 76% of their wealth in real terms. They gave up an opportunity to multiply their real wealth by a factor of 12 (by putting it into gold). That was the first upswing of the commodity pendulum. Now we are in the second upswing of the commodity pendulum.  And it appears that the vast majority are going to make the same mistake again. 

Fortunately, we live in a world which is inherently based on justice. Those who see reality as it is are rewarded. Those who deliberately close their eyes to reality are punished.  So it was in the ‘70s.  So it will be today. History does repeat. It is repeating as we speak. Fantastic moves occur in the financial markets.  If you are on the right side of them, you prosper.  If wrong, you lose.

This is my job in life, to help the good to prosper and make sure the evil lose. To this end, I publish a small economic letter called the One-handed Economist ($300 per year).  You can subscribe by sending $300 to the One-handed Economist, 614 Nashua St. #122, Milford, N.H. 03055.  Or you can visit my web site, www.thegoldspeculator.com. You can get a free sample of my writing by visiting my weekly blog at www.thegoldspeculator.blogspot.com  This past week I put out a special bulletin saying that the decline in gold (which started on Dec. 3) is now over, and the next move will be up.

Thank you for your interest.

 Howard S. Katz

 ****

 My name is Howard S. Katz, and I am looking for men who have that kind of courage.  I write the One-handed Economist, and I sell subscriptions for $300//year.  You can get one by visiting my website, www.thegoldspeculator.com, or sending $300 to The One-handed Economist, 614 Nashua St. #122, Milford, N.H. 03055.  You can also visit my blog (no charge) at www.thegoldspeculator.blogspot.com.  This week’s blog is “The Origins of Christianity.”

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