Yea Europe!

So it was announced over the weekend that France and Germany agreed on a plan to “recapitalize” their banks, opening the way for another bailout of Greece.  “Recapitalize” is another word for bailout, which consists of printing money to give to the banks to keep them from going under.  Didn’t Europe already bailout Greece earlier this year?  And yet here we are again.

And I think you can count on that continuing.  If you don’t fix the underlying problem, then the problem will just keep coming up again and again.  This agreement doesn’t fix anything.  It just buys them more time.  The stock market is headed up today on this news.  But I wouldn’t get back in the stock market until they actually begin to address the underlying problem.

They didn’t stop the bleeding.  All they did was put a band-aid on the wound.

Which brings me to my next issue.  The financial media is reporting this as a great thing – Greece and the European banks are now okay.  I would suggest you quit reading the main stream media.  These guys don’t report correctly.  The news you need doesn’t get printed and the news that does get printed is usually heavily slanted toward the viewpoint they wish you to have.  I’m getting my news mainly off the internet now where I feel much more confident in getting the true news.

And lastly, did you read the bit about the Bank of Japan printing up more yen for the Japanese.  I’m not sure how much, but the word quadrillion comes to mind.  Japan has been doing this for year to no avail – their economy continues to sputter like it has since 1988.  You probably didn’t see the news because of the timing of the news release.  It was announced on the same day Steve Jobs died.  Why?  Japan doesn’t want anyone to know.  This is highly inflationary action.

Let's Save Europe

Imagine for just a moment that there is a privately owned organization in the United States that controls the entire money supply and therefore economy of this country.  They can create U.S. dollars out of thin air whenever it wants.  Imagine this organization is never elected by the American people and is never accountable to anyone – not to the president or to Congress.  Imagine that this organization can operate in complete secrecy and can make loans to banks, foreign governments, and even close friends without anyone being able to do anything about it.

Well imagine no longer.  This organization is called the Federal Reserve.  While most people think this organization exists for the benefit of the country, they don’t.  They exist for the benefit of the banks.  They are entirely unauditable and can do whatever they want whenever they want.  They answer to no one.

And now they have decided to bail out Europe.  They are going to loan huge piles of money to commercial banks in Europe.  Did I mention that 57% of the shares of the Federal Reserve are reportedly owned by the Rothschild banking family of Europe?

If you don’t like this – tough.  There is nothing you can do about it.  Neither can President Obama.  Neither can congress.  Neither can the Supreme Court.  The Federal Reserve can do whatever it wants to and they simply don’t care whether you like it or not.

Of course the billions and probably trillions of dollars that will be lent are going to be printed.  We’ll never know how much, because they don’t have to tell us.  This means inflation and higher prices for you.  After all, this has to be paid by somebody and the Fed has decided you are going to be the one.

The only thing we can do, is to eliminate the Federal Reserve.  If you haven’t read Ron Paul’s book, End the Fed, I encourage you to do so.

There are a number of conspiracy theories regarding the Federal Reserve.  When America was first established, the Rothschild’s pushed hard for a central bank.  One was established under George Washington with a 20 year charter.  John Quincy Adams refused to renew the charter 20 years later, thus ending the First Bank of America.  The Rothschild’s were terribly upset and the conspiracy theory is that they pushed Britain into starting the War of 1812 in an effort to put America into debt.

After the war, and with huge war debts, a second central bank was established called the Second Bank of America.  Also with a 20 year charter.  Andrew Jackson made it his personal mission to “kill the bank” as he called it.  And he finally ended the central bank after surviving an assassination attempt he claimed was planned by the Rothschild’s.

It wasn’t until 1913 that the Rothschild family succeeded in creating the current Federal Reserve and thus taking over the United States economy.

John Kennedy attempted to circumvent the Federal Reserve when he signed, by executive order, a law to have the U.S. Treasury print the dollar instead of the Federal Reserve.  He was assassinated shortly thereafter and the executive order died unimplemented.

The Federal Reserve has systematically been stealing money from the American people ever since 1913 by creating boom and bust cycles of inflation and then deflation.  I’m not going to go into how they do this, but trust me that they do it.  Read Ron Paul’s book, End the Fed, for details.

And now the Fed is going to save Europe.  And you get to pay for it.  If you haven’t prepared for inflation, you should begin to do so.

America: A Country Ruled by Bankers

 I know.  You thought the people ruled this country.  After all we can vote out our politicians and replace them with others.  How naïve you are.

If you control the money supply, you control the power to run the country.  And the banks control the money supply.  The people gave up that power back in 1913 when the Federal Reserve was created. 

The Federal Reserve is not a government agency.  It is not owned by the U.S. government.  It is owned by the member banks of the Federal Reserve.  These banks are either corporately owned (some by international or foreign corporations) or are privately owned (again some by international or foreign individuals).

The Federal Reserve, by law, operates independently of the U.S. Government.  In fact, as of this point, the government is not even allowed to audit the Fed to determine exactly what they are doing.  The Fed controls all of the gold in Fort Knox – and no one knows how much is actually there any more.  The Fed controls the printing press and has the authority to print up more money at any time they see fit.  They have unlimited power of the money supply of the United States.  And they conduct their affairs in secret.

Anytime they wish to steal money from the citizens and hand it to the banks to be distributed as they see fit (in other words, outrageous bonuses to the top executives) they do so.  They have several tools to do this such as creating inflation, creating boom and bust cycles, and printing money and handing it out to the banks.

They keep their member banks from failing by more bailouts.  All the while these banks continue to steal money from the American public.

Goldman Sachs, one of the six “too big to fail banks” (the others being Citigroup, Bank of America, Wells Fargo, JP Morgan, and Morgan Stanley) recently got fined for selling investments to the public while at the same time betting those investments would go bad.  They made trillions of dollars selling these investments and yet their fine was a very paltry number in the millions.

Now it seems Goldman Sachs is at it again.  On one hand, they are telling their customers everything is going to be fine in our economy.  On the other hand, the Wall Street Journal recently got hold of a secret report intended for Goldman Sachs largest clients where they advise that the economy is fixing to collapse.

They never learn.  But there is no reason for them to.  They keep getting away with it.  After all, Goldman Sachs was President Obama’s second largest campaign contributor.  I’m sure he’ll do nothing to them in spite of his rhetoric.  Plus his cabinet as well as government regulatory authorities (such as the SEC and the CFTC) are littered with ex-Goldman Sachs executives.

Sadly, the power of the “too big to fail” banks continues to grow.  At this point, the “big six” possess assets equivalent to approximately 60 percent of America’s gross national product.

We have a financial system that is deeply, deeply corrupt.  And this corruption is a major reason why things are falling apart.

America’s only hope, even after the crash, is to elect someone that will do away with the Federal Reserve and allow the “too big to fail” banks to fail.

 

Hanging the Taxpayer Again

Bank of America is practically bankrupt.  Back in 2008, during the subprime crisis, Bank of America was strong-armed in to buying the mortgage behemoth, Countrywide.  Now with foreclosures picking up at a rapid pace, Bank of America was getting killed in their mortgage losses.  To the point they are almost bankrupt.

Rumors were floating this week that JP Morgan would be buying Bank of America.  I couldn’t see it though.  Who would want to buy any bank that has the number of foreclosures awaiting them that Bank of America has?  Well it turns out I was right.

In a very under-reported news item, it was announced that Bank of America, in addition to receiving $5 billion from Warren Buffet, had sold their “real estate division” to Fannie Mae.  Now all of these foreclosures are going to be transferred to Fannie Mae.

Of course, Fannie Mae is the quasi-government entity that was used to finance so many of the mortgages in America.  As a result, the federal government has been having to provide Fannie Mae with 100’s of billions of dollars every month in order to keep them out of bankruptcy themselves.  This is, of course, paid for with taxpayers’ dollars.

So in effect, the taxpayer has again bailed out a bank that is considered “too big to fail.”  We are on the hook again for all of the foreclosures that Bank of America, through Countrywide, have.  They made the bad loans, but it’s the taxpayer, not the bank, that is going to pay for them.

And they did this so sneakily that few people are apparently aware of it, thus avoiding the outrage that is associated with bailing out the big banks.

Welcome to America!

How to bail out the states

I just saw an article where California was able to secure $5.4 billion in loans from 8 different banks, led by Goldman Sachs.

Why is this important?  California is out of money.  And yet they refuse to cut their spending.  So the only way they can continue to spend this kind of money is to borrow it since the states do not have their own printing press.

But this money that is being loaned to California is money that was given to the banks as part of the Federal Reserve’s money printing program.  Since California will probably never pay this loan back, the Federal Reserve has in effect printed money for the State of California.

I was wondering how the federal government was going to bail out the states that have overspent.  And this appears to be how they are going to do it.  And they did it in such a way that the vast majority of the people will never figure out that it was a bailout.

The First Domino

It seems to me a lot of Americans aren’t taking the Greek situation seriously.  After all, it is another country, half way across the world, how can it actually affect us.

What people don’t realize is that the banking system is a global banking system.  All of the banks around the world are tied together.  Who do you think owns all of this Greek debt?

Unfortunately U.S. banks own a large percentage of it.  European banks own a lot as well.  And even China has a pretty large stake in it.  If Greek fails, that is likely to cause banks throughout Europe, the U.S. and Asia to fail as well.

First Greek fails to pay back a European bank.  That causes that bank to be unable to make their payments to a U.S. bank.  That causes the U.S. bank to be unable to make their payment to China.  And so on.

It is lined up like dominos and once the first one falls, the others will be right behind it.  If Greece goes under, the entire global financial system will be right behind it.  This is why so many countries are fighting so hard to keep Greece afloat.

And it is something Americans should take very seriously.

However, as we have already seen, bailing out Greece doesn’t work.  They were already bailed out once, and here they are now needing more money again.  All they can hope to do is give Greece enough money that they can keep them afloat for a little while and hope that a miracle will occur somewhere.

That miracle is that one of these countries is going to have to cut their spending so dramatically that they can actually begin to pay down some of their debt.  It doesn’t appear that is going to happen, either in Europe or the United States.

It’s just a question of time before somebody defaults and the dominos begin to fall.

Richard Fisher's Speech

Yesterday, the Round Rock Chamber of Commerce hosted their monthly meeting by having Richard Fisher, the President of the Dallas Federal Reserve Bank and a member of the Federal Open Market Committee (which sets Fed monetary policy) as a speaker.  I was in attendance.

In his speech, Mr. Fisher said that the economy is on the path to recovery and he would not be surprised if GDP (Growth Domestic Product, which measures the U.S. economic productivity) growth was as high as 4% in the last half of the year.

Personally I don’t see this.  Mr. Fisher admitted that the Fed had provided plenty of liquidity to the system.  That banks had plenty of money to loan out, but loans weren’t occurring due to too many unknowns for businesses.  But as some of these things settled down, then economic activity should pick up.  He admitted that our economic activity is 70% consumption, so basically he is saying consumption should pick up.

If consumption picks up, then business will want to hire more.  Thus reducing unemployment and causing both consumers and businesses to want to borrow more.

Again I don’t see this.  What I see is that baby boomers are getting older and more and more are reaching retirement age.  When people retire, they spend less.  Also the financial crisis has caused many people to realize they need to get their own finances in order.  As a whole, the country is paying down its credit card and automobile debts and spending less.

Plus a whole lot of people are removed from the credit system due to foreclosures or personal bankruptcies or just due to increased lending standards.

I simply don’t see consumption going up, therefore I don’t see any increase in lending or any increase economic productivity occurring.  My prediction is that GDP will be lower the next 6 months.  This prediction, of course, is based on the Federal Reserve not printing more money and artificially inflating all of our numbers including GDP numbers.  Unfortunately I have to present that caveat because I think that is what is most likely to occur.

Anyway his speech left me wondering.  Can the Fed not analyze the same way I do?  Do they lack the same information that I have?  Or do they have some other agenda that would cause them to misrepresent this information?

Richard Fisher is a very intelligent man.  He went to Harvard and to Stanford.  I’m sure he can analyze data as well as me.  It’s hard to believe they don’t have the information as I’m not privy to near the information they have access to.  Nor do I have the research manpower that they have.

Therefore I can only conclude that they know what is the truth, but have some other agenda.

Of course, they will just tell you that I can’t analyze data accurately.  And that I simply don’t understand.

We shall see.