The Fed’s Money-Making Machine

What does government creation of money really mean? Well, under disguise of economic crisis, the Fed is stealing the country.

Printing money is a crime if you do it. But if monopoly power of government does it, it’s called “monetization.” Government is now trying desperately to inflate because the more inflation, the more wealth is stolen.

• Governments steal as much as they can without collapsing the system.

• The more money they create for nothing, the richer and more powerful they get.

• The bigger the government gets and the more reckless it gets, the more it must suppress its people because many begin to wake up.

• The bigger government crime, the greater the propaganda and deception.

• Fact: Every dollar the government creates means that dollar is stolen from the people. Paper money confiscates wealth.

Government deficit is a most deceptive term. The popular illusion is that the government is spending too much money. What is really happening? Everyone talks or writes about the government printing money, but what is really happening?

The act of money creation means that more and more of the national wealth flows to the federal government. How in the name of Pete do people think that the United States government became so powerful and so wealthy in property?

The government produces nothing. It has to steal and it does so on an unimaginable scale. The mind of man cannot deal with such a massive transfer of wealth, and few people even suspect it. Why do people not know about the biggest fraud in history?

The answer is that the income tax serves to cover or mask the fraud perfectly. The minds who created this chicanery were masters of deceit. Is this crime too big to believe or too big to understand?

The government hides the fraud by getting the people to believe that the income tax supports the government and pays its expenses. The truth is that the government gets its wealth and power for nothing. It only has to create its money and the deception to hide what it is doing.

Writers, in trying to explain the U.S. trade deficit, lament that, “The U.S. has been living beyond its means.” This serves as a mask for the truth that the U.S. government has consumed the national wealth via the printing press.

Is the truth too horrible to face? How can there be such a thing as human liberty when the politicians and federal judges are paid and pensioned by the federal government?

We simply don’t think.

Malnutrition and Physical Degeneration

When Americans see little emaciated malnourished black African children being used by the TV media for the solicitation of funds for starving children, few of them, if any at all, understand starvation.

There are two kinds of starvation. One of course is simply not enough food. The second is far more insidious, and that is plenty of food with no nutrition.

Our concern is the second one because this applies to almost every American. It is by far the most deceptive and widespread disaster in history. It is more threatening to our national interest than would be an invading army.

And not one person suspects it. When we as a nation have full bellies, it is all but impossible to convince Americans that we are starving to death.

The problem is that full belly starvation is an oxymoron. It contradicts simple logic until we get a basic understanding of nutrition. This deception is compounded if we look at the exploding size and height of each generation. The explanation for this is the massive amount of growth hormones put in beef and fowl food. Forced growth is not nutrition.

The elements of human health are calories, energy and nutrition. With the American diet, we are only getting calories and energy. There is little or no nutrition in the American diet.

There is literally an invisible famine in the land. The American civilization is a failure. It’s a commercial secret that food processors don’t want known. Our inferior diet is causing social decay and race deterioration.

Donald Laird says in his book, The Tail That Wags the Nation, that, “The country’s average level of general ability sinks lower with each generation.” Dr. Weston Price says in his classic work, Nutrition and Physical Degeneration, that, “The problem of the relation of physical defects to delinquency, in its various phases, including major crime, constitutes one of the most alarming aspects of our modern problems in social degeneration.”

C. F. Chassell in his book, Relation Between Morality and Intellect, states that, “The correlation between delinquency and mental inferiority as found in the case of feeble-minded groups is clearly positive, and tends to be marked in degree.”

C. L. Burt wrote in The Young Delinquent, that, “There is a direct relationship between delinquency and physical degeneration.”

All this to say that there is positive research that we are having a constant racial and mental degeneration, a progressive dumbing down correlated with rising crime and deteriorating morality. Physical and mental degeneration is directly related to nutritional deficiency. This truth is politically taboo and you will never hear anything about it.

Strategies for Financial Survival

Good judgment does not always accompany a good education or impressive professional experience.Where we Americans go badly wrong is trusting authority under the aura of education and pseudo professionalism. There are many fools under these mantras.

There is really no substitute for taking personal responsibility in every area of our lives, including finance, health and religion. Keep following a leader and you will eventually be in a ditch more like a human grave. We sit on an economic powder keg. Authorities would have us to believe that the system will recover and prosper. There is no system. It is a patched-up paper money monster that has nothing left but confidence. When that falters, she blows!

The truth is we have eaten our seed corn! Not only that, we have borrowed from our future. Americans have been sold completely on the idea that lowering interest rates is the ticket to eternal material prosperity.

Consequently, the American consumer has already borrowed from next year’s consumption.

All speculative manias in history have led to financial excesses, overproduction capacities and huge debt. This has led to a vicious downturn and financial busts which in turn has led to recessions or depressions. The very salient point is that none of the financial establishment or public gurus saw the collapse coming now or in the past.

The economic situation in the U.S. today is far more dangerous and complex than ever before. We are indeed faced with a fundamentally totally different set of economic, financial, and now, geopolitical conditions than ever before in our economic history.

Inflation eventually creates deflation, as so well demonstrated in Japan. Ironically, deflation gives paper money more purchasing power, something governments never intend.

Inflation is an increase in the volume of money and credit relative to available goods. Deflation is a contraction in the volume of money relative to available goods. Simply put, deflation develops as a result of excessive debt built up during boom times. Almost no one expects deflation before it starts.

And almost no one knows why deflation comes like a bolt out of the blue.

Here is the reason. The social mood reverses from euphoria to loss of confidence periodically. Why does the social mood reverse ever so often? The answer is because inflated economic activity and confidence burns out and reverses. Loss of confidence causes a collapse of credit which leads to substantial involuntary debt liquidation and many bankruptcies. If debt liquidation gets out of hand, the money stock collapses faster than it can be created as now.

The key to the next few years is to preserve your assets/savings and diversify. This means unequivocally to spread your assets. Do not put all your eggs in one basket.

A cash reserve in your possession is not all bad in case the printing presses fail to inflate as they intend to do. You can always change cash to gold coins.

Needless to say, debt is a bad thing in deflation. In fact, it’s a disaster. Try to get rid of your debt now or as much as you can. This includes real estate debt.

When prices collapse as in the current Japanese deflation, cash and savings is king because as prices go down, cash becomes worth more and more.

• Buy gold coins, especially one-ounce bullion coins, American Eagles. Buy some “junk silver” _U.S. 90% silver coins minted through 1964.

• Buy Swiss francs in the form of a Swiss annuity.

• Stash cash in U.S. dollars as long as we experience deflation or the threat of deflation.

• Do not buy or hold stocks except some select quality gold stocks, i.e., Newmont, Royal Gold, Goldcorp, Agnico Eagle, Glamis Gold, Goldfields, Randgold, and/or Tocqueville Gold Fund.

Buy now and hold for the big advance coming soon. The top could be three to four years out. Then we will sell and buy the New York Stock Market again which will eventually arrive at rock bottom with historical values. Please remember that at that point, the world economy will look like a black hole and you will be scared to death.

In the meantime, the gold market will not go straight up. There will be corrections or shakeouts.

Hold and build your position.

Homeland Security Out of Control

“Homeland Security” is a new phase of government out of control. U.S. authority is at war with the American people under the pretense of “war on terrorism.” This strategy is an age old Machiavellian system of building up external fear and using the emergency as an excuse for all kinds of domestic suppression.

What to expect:
• More censorship.
• Jailed dissidents.
• Expropriated property.
• Nationalization of bankrupt companies.
• Expropriation of savings and retirement funds with currency debasement (the massive creation of “money”).

How will the American people respond?
• People will finally dump the currency for gold/silver and barter.
• “Tax evasion” will escalate.
• Silent and open civil disobedience.
• Vast increase of political dissidence.
• Mistrust in government will spark bank runs as government freezes all bank accounts.
• Open hostility in the streets.