October 10, 2005

NewsWithViews.com

Thucydides pointed out that hope is a very expensive commodity; therefore, it makes more sense to be prepared.

While financial disaster looms over the heads of Americans, bird brains in Congress waste their time diddling and playing their usual partisan games with conservatives busy fighting amongst themselves over Bush's latest Supreme Court nominee. Here's a hint as to why he picked Miss Harriett: Bush is stacking the court with no care of the long term consequences. There is more than enough solid documentation and verifiable evidence to prove prior knowledge of 9/11, the Karl Rove/White House scandals are percolating with everyone wondering what the grand jury will come back with and that Bush lied about the threat of Saddam and WMDs. While Bush cheerleaders willfully choose to remain in a state of denial, millions of others demand the truth. Miss Harriett knows where all of Bush's skeletons are buried and John Roberts knows the tricks of the trade. In my humble opinion, that's why Roberts was fast tracked and a "token" female with no bench experience, but lots of loyalty to Bush was chosen over more qualified candidates.

The Democratic - Communist Party will go all out in an attempt to recapture Congress in the '06 elections. The Republican Party which has also adopted the communist manifesto will engage in their usual tactics to stay in power. With vote fraud controlling the agenda, we the people will have very little to say about the outcome unless there is a massive voter revolt over electronic ballot machines between now and November 2006. While popular political pundits and talk show hosts who get paid a king's ransom to keep the real issues away from the people, reality is coming at unsuspecting Americans like a guided missile. Betrayal is a difficult pill to swallow, but I would rather know the truth than get blind sided.

There is no money in the U.S. Treasury. The debt is now $7,978,002,527,274.56 and accumulating interest every second of the day.

The engineered, unconstitutional invasion of Afghanistan and Iraq are costing a whopping $7 billion dollars a month. Bush wants to further drive us into poverty with a ten year commitment of $570 billion dollars. Never in my life have I seen such insanity - not even under Clinton.

How do you spend $7 billion dollars a month when there is no money in your bank account?

Congress borrows it from their private bankers and slaps this unpayable, massive debt on your back. They have doomed our children and grand babies to little more than serfs of modern times. There is absolutely no authorization in the U.S. Constitution for this type of rape of the American people's pockets. Think these crooks in Congress care? Think again. Congress has become little more than a cabal of crooks operating under their own rules. War is profit driven and business is booming - for the international banking cartels. All they need are more soldiers to sacrifice in deliberately engineered wars to feed their lust for power and enrich them beyond imagination.

In a column September 27, 2005, David Uren wrote: Reserve Bank of Australia: RBA warning of 'meltdown.' "Further rises in oil prices, the collapse of a major bank or an unexpected jump in inflation could be all it takes to send the increasingly fragile global financial system into meltdown. The Reserve Bank of Australia warned yesterday that the current calm in financial markets could be the prelude to a storm that could wreak havoc in the world economy. The RBA believes the boom in markets for shares, bonds and housing in many countries is unsustainable. The warning came as share prices in Australia reached a new high point, while a rush to invest in Australian bonds is pushing down long-term interest rates. "The preconditions are in place for quite abrupt swings in sentiment and a disruptive snap-back in pricing," the central bank says in its latest review of the health of the financial system."

Since NAFTA was unconstitutionally ratified back in '94, many of us have been trying to warn the American people about the lunacy of a "global economy." We have warned about the domino effect and that the U.S. will go right down the road to poverty right along with all the other countries whose corrupt governments (G-8) have dragged their economies into "global interdependence." Well, the fruits of their labors are now ripening. The banking cartel won't lose anything, but the American people will lose everything.

Gold is on the move and those who understand what this means recognize the danger signs that are being screamed at the American people, who sadly, either don't have access to the truth or don't understand the subject and why it is so important. Below is an excerpt from a recent LeMetropole Cafe posting. I am a subscriber to this outstanding forum of very savvy individuals who know the financial markets, who fully understand the absolute corruption of our government, their incestuous relationship with the banking cartels and pull no punches in telling Americans what IS coming down the pipeline:

"The rationale of Quid Pro Quo and the notion of For Every Action There is An Equal an Opposite Reaction have not suddenly lost their validity. The power /money structure in the US has graduated to a financial market modus operandi which has led Americans to believe that nothing can ever really go wrong with their stock and real estate investments. There is little fear of economic loss out there no matter what happens. Can you blame many Americans for feeling that way? After Katrina their combined real estate/stock market investments made an all-time high and are still going up.

"The problem is these feel good economic times are based on deceptions, which will disappear sure as shootin’. The US economic levees will break, just like the flood ravaged levees in New Orleans did, because of these purposeful illusions. They will probably do so without warning and the results will be catastrophic as The Court of Last Resort (as in the case of Katrina, the US Government) will not only not be there to bail the markets out, but will be a significant part of the problem.

"Now is the time to pay attention and be prepared for the US economic levee to eventually break. The odds of it happening in the not too distant future are far more likely than the forecasts of those who accurately predicted the New Orleans levee to break in case of a hit by a Category 4 hurricane. The simplest way and lowest risk manner for investors to take out economic levee risk protection is to load up on gold and the gold shares (silver too). The historic gold move up is only in its infancy. Gold prices between $1,000 and $3,000 per ounce in the years ahead are both likely and probable. Many of the gold shares are up 300% to 1,000% off their 2001 lows, yet a number of them are 60% to 70% off their late 2003 highs – even though the bullion price is $25 higher than it was in late 2003. Have said my piece to try and be of help. Just make sure you are too early when the US economic levee breaks, not 5 minutes, or a day too late."

Most Americans have no idea how much of our debt is being held by foreign governments. However, they are getting tired of buying up our debt which puts the dollar in even more jeopardy because the only thing behind our "dollar" is more debt. One more comment from LetMetropole Cafe that is important because it is right on point:

"OK, the deal is this the way I see it. Because these fools have done away with free market principles, and the hideously bought US financial press has let them get away with it, US financial markets are staring at the abyss. These Orwellians have used massive amounts of derivatives, lies and intervention to tranquilize the US financial markets. The key to maintaining this order was to keep the price of gold in check. You can read about this ad nauseam in the Café library and by reading Reg Howe’s "Gibson’s Paradox and the Gold Standard" at www.GoldenSextant.com. Unfortunately for the Orwellians, they are running out of viable options. For example, lower interest rates could be disastrous (revealing true economic weakness) and so could higher interest rates (stopping the US economy and real estate market dead in their tracks). So how did we get here?

"You can thank the second most overrated man in US financial market history for that, Robert Rubin, architect of the US Strong Dollar Policy, which, in fact, was nothing more than a scheme to manipulate and suppress the price of gold. Number one dunce is Chairman Greenspan, who betrayed his long held free market principles in order to elicit Wall Street and the Washington Polls butt kisses for so many years.

After Robert Rubin, who sweet talked the English and others in the sycophant establishment banking world to go along with him over the gold selling farce, there is a little known bureaucrat who stoked the fires. His name … Dale Henderson, Federal Reserve economist, who wrote a paper in 2000, "Can Official Gold Be Put to Better Use?"

"Ironically, most of the American public, even knowing this, would say fine on these shenanigans – as long as my real estate goes up in value and my IRA holds its own. Well, I got news for you Joe and Jane America. The US financial system has cancer. Go for the cure now and save what you have, or let it go and die. Of course, since the US financial press will not allow the likes of a GATA even to be heard, the prognosis for the average American investor is market death. It will be the Titanic all over again … no warning. They will lose most everything in the years to come. There will be small riots and SCREAMS of "HOW COULD THIS HAVE HAPPENED?" (End of excerpt)

To say that gold has been manipulated as well as the American people is an understatement, but the manipulators are losing control.

"The bell tolls for the US Dollar because it is doomed. Like the Dodo bird, the US Dollar will, within the foreseeable future, disappear into the history books in the chapter on "Extinct Species." --Alf Field, Le Metropole Cafe

Here are a few items you may have missed due to a busy schedule.

August 12, 2005 Bush acknowledges the collapsing US economy The US administration aims to spend $286 billion on the development of the American transport system

"US President George W. Bush released a remarkable statement a short time ago. The remark has not been highlighted in the world media yet, although there is every reason to do so. Bush virtually acknowledged that the USA was experiencing a serious economic crisis. Moreover, the US government was taking immense efforts to avoid a massive outbreak of social uneasiness, the American president believes...the White House is desperately looking for measures to find employment for crowds of unemployed American citizens and hungry migrants, which threaten to enrage the rest of the States."

This is an e-mail exchange between individuals I know who have been trying to sound the warning bell for a long time:

"September 24, 2005: Hedge funds, derivatives, and the average Joe - I'm forwarding two CNN Money stories from last Friday, which are symptomatic of behind-the-scenes panic at hedge fund/derivatives catastrophes which have already happened but which haven't reached the surface yet. Sanio (top German financial regulator) told German media last week, as he headed to the Bear Stearns/Morgan Stanley parley in New York on dangers of hedge fund/ derivative breakdowns, that "another LTCM is inevitable" given failure to institute regulatory control since the LTCM meltdown of 1998.

"Check out today's (Sept. 26) Financial Times, for a similar warning..."Hedge Fund Derivatives Disaster Lurking behind Delta and Northwest. Commenting on the unserious reaction by the financial community to warnings of a hedge fund collapse by German bank regulator Jochem Sanio, the FT warns of a derivative disaster lurking behind Delta and Northwest Airlines bankruptcies."

What is going to happen to the trillions of dollars in pension funds when this meltdown reaches hyper speed? How many Americans who have their life's savings in the stock market or other investments really understand what's happening right now? Tens of millions of Americans and everything they have ever worked for is in dire jeopardy and that is no exaggeration:

All eyes on hedge funds/Scandal at Bayou, weakening returns. September 22, 2005/By Amanda Cantrell, CNN/Money staff writer

".....Meanwhile, several funds have come under the scrutiny of federal regulators this year for allegedly defrauding investors. Two principals of KL Financial, a $200 million, West Palm Beach, Fla., hedge fund, fled the country after the SEC sued them in March for lying about their funds' returns and issuing bogus reports to investors. More recently, Daniel Marino, the chief financial officer of Bayou Management LLC, admitted to years of cooking the books in a suicide note, though he never killed himself, according to media reports.

"Marino and Bayou's founder, Samuel Israel III, are now being investigated for falsifying returns to cover up trading losses, and state officials in Arizona seized $100 million in funds believed to belong to Bayou's investors, according to court documents. Federal prosecutors filed a suit alleging that Bayou's managers raised $300 million from between 1998 and 2005 by lying to investors about the fund's returns and other issues."

September 28, 2005/Overdue Credit Card Bills Hit Record High By Jeannine Aversa, AP Economics Writer

"Surging energy prices, low personal savings and the higher cost of borrowing have combined to produce a record level of overdue credit card bills. The American Bankers Association reported Wednesday that the percentage of credit card accounts 30 or more days past due climbed to an all-time high of 4.81 percent in the April-to-June period....The previous high of 4.76 percent came during the first three months of the year, in keeping with a generally steady rise over the past several years.

"The personal savings rate dipped to a record low of negative 0.6 percent in July. The negative percentage means that people did not have enough left over after paying their taxes to cover all of their spending in July. As a result, they dipped into savings to cover the shortfall."

Individuals who can't make even the minimum payment on their credit cards can't spend. They have no disposable income left for anything other than basic survival. People who file for bankruptcy are credit strapped and can't spend because they have no disposable income left for anything other than basic survival. Those of us who know what's here and maturing, aren't spending - especially on cheap junk manufactured by slave labor in communist countries like China.

Too much of our economy is based on "fun times" and entertainment. When it gets down to basic survival vs. fun spending, guess where that consumer dollar will go? It will go for rent and food, not casinos, movie tickets or ski trips this winter. The poor will continue to slip into deep poverty and the middle class will be driven into their first taste of poverty in order to subsidize - via more and more taxation - the poor, unconstitutional wars, foreign aid and more unauthorized spending through borrowing. Right behind the feds are the states picking your pocket and most of it is done through borrowing or more bonds. Debt slapped on top of more debt, yet the voters seemingly don't mind as they continue to reelect the same communists, fascists and socialists to their state legislatures.

If you haven't read 'Borrowing, Spending, Counterfeiting' by Congressman Ron Paul, I highly recommend you do so. This column was written back in August in response to the transportation bill that was signed by Bush - legislation passed solely to create more jobs via government subsidizing (more communism) and a very transparent effort to keep Americans from seeing the real destruction of our key job sectors as a result of these insidious trade treaties. Bankruptcy filings are at record levels in this country. A new federal law goes into effect October 17, 2005 which will make erasing debts more difficult. By the end of September, filings were running 13,000 a day; year-to-date filings of 1.36 million are up 14% from last year. This cannot all be laid at Katrina's door, believe me. Those in the industry know better:

"The headlines this weekend are truly shocking. For the third quarter of 2005 Natural Gas rose 80%, gasoline 44% and crude oil 13%! If you read many of the mainstream news comments about the energy market you will come to the conclusion that two very wild and mischievous twin sisters, Katrina and Rita were responsible for all of this, with a bit of blame also going to insurgents in Iraq who keep blowing up pipelines. So while it is painful to pay such sky-high prices for natural gas and gasoline we can rest assured that as soon as the storm damage to the energy industry infrastructure on the US Gulf Coast is repaired, and things get more stable in Iraq, Americans can go back to gas guzzling with their SUVs at a buck a gallon for gasoline. Unfortunately, that will not be the case. The current energy crisis has been more than 35 years in the making. Recent events have only acted as catalysts to what was already an accident waiting to happen." Adrian Douglas "Running on Empty - The Anatomy of an Energy Crisis"

Oil is black gold. Oil runs the industrialized world. We can all see the impact of the high cost of this liquid gold at the pump is having on our daily lives. The cost of everything is increasing; high fuel prices are curtailing Americans in their spending habits which is bad for the economy. However, it goes much deeper than that. On October 5, 2005, Michael Ruppert, author of Crossing the Rubicon, gave a speech in NYC for the Petrocollapse Collapse conference. There are those who make their living at convincing you peak oil is a bunch of hooey. In Crossing the Rubicon, Ruppert uses an old Saudi saying which goes something like this: "My father rode a camel, I ride in a car, my son rides in a jet and his son will ride a camel." Chilling coming from a country that supplies so much of the world's oil.

I have a copy of Ruppert's entire speech which is only available to members on his site From the Wilderness. As it is copyrighted, I can use just a couple of paragraphs of this powerful presentation: Government, Financial And Political Awareness Of Peak Oil Prior To 2005.

"MAY 2001 – THE NATIONAL ENERGY POLICY DEVELOPMENT GROUP This secret task force, which fought all the way to the Supreme Court to keeps its records and deliberations secret from the public, is for me the place where the deepest darkest secrets of both the September 11th attacks and government's awareness of Peak Oil lie buried. The task force convened just as the first 20 out of 25 wells drilled in the Caspian Basin came up dry holes. In “Crossing the Rubicon” I discuss the meager seven pages of NEPDG records released after lawsuits which confirm the group's obsession, not with oil discovery, conservation (economic stagnation) or energy substitutes, but with where the known oil was, who owned it and apparently who had to be dealt with to get it.

"The public report of the NEPDG told us, just four months before the 9/11 attacks: “ America in the year 2001 faces the most serious energy shortage since the oil embargoes of the 1970s. “Estimates indicate that over the next 20 years, US oil consumption will increase by 33 percent, natural gas consumption by well over 50 percent, and demand for electricity will rise by 45 percent.

“US energy consumption is expected to increase by about 32 percent by 2020. Between 2000 and 2020, US natural gas demand is projected by the Energy Information Administration to increase by more than 50 percent. Yet we produce 39 percent less oil today than we did in 1970, leaving us ever more reliant on foreign suppliers. On our present course, America 20 years from now will import nearly two of every three barrels of oil — a condition of increased dependency on foreign powers that do not always have America's interests at heart.

"February 2005 – SAIC Report Of Robert Hirsch. Science Applications International Corporation is one of the most elite military and intelligence technology companies in the world. It controls a significant part of the Internet and is one of the core companies in the field of data mining technology used by the US government to spy on potential enemies – us. In 2004 the US government commissioned SAIC to look at Peak Oil and to recommend various strategies for dealing with it. That report – published this summer – revealed some of the immediacy of the pending collapse. While refusing to take a position as to when actual peak would occur, the report -- PEAKING OF WORLD OIL PRODUCTION: IMPACTS, MITIGATION, & RISK MANAGEMENT – made the picture pretty clear.

“Waiting until world oil production peaks before taking crash program action leaves the world with a significant liquid fuel deficit for more than two decades…”
“…If mitigation were to be too little, too late, world supply/demand balance will be achieved through massive demand destruction (shortages), which would translate to significant economic hardship…”

"Ladies and gentlemen, there is a plan to deal with Peak Oil. It has been formulated for some time and it is being carried out right in front of our very eyes this minute. It contains none of the aspects you would like to see or hope to initiate but it is irreversible, etched in stone, and nothing is going to deter it. While I have met with Congressman Roscoe Bartlett of Maryland and while I applaud his singular and sincere efforts on the subject I hold no optimism that he will have any influence on public policy. He is truly a good man, I believe. But one member of the House of Representatives who chairs no relevant committees and who does not enjoy the total support of either his party’s leadership or the White House can do little except educate and warn the public. We cannot look to Mr. Bartlett, however good his intentions, to solve anything for us. We are witnessing government response to Peak Oil now." (End of quote)

On top of all discussed in this two part series, you need to factor in the economic Armageddon which will happen when he first wave of baby boomers retire in less than three years. There is no getting around this one. Congress doesn't have the political stomach to make the hard choices, they are simply going to let the whole mess get dumped right into our laps to deal with, but most won't be prepared. It wasn't raining when Noah built the ark, but the massive, deadly storm is already beginning to rain on America.

As Dr. Edwin Vieira pointed out in one of his brilliant columns earlier this year- don't look to Congress to save your assets and everything you have ever worked for - it isn't going to happen. We are very far down the road and I am trying to help people understand just how vulnerable they are to losing everything. If you want to learn more, please contact Harvey Gordin for a complimentary copy of a 32-page report that you need to read. There is no obligation. Get the truth and take the necessary steps to protect you and your family and don't put it off until tomorrow. Tomorrow is already here. Get out of debt as quickly as you can and take steps to protect your assets. Long term survival is now top priority.