Trusting The Liars

If you’re going to take someone’s advice, who would you choose: the person who had been consistently right or the person who always got it wrong?

Or, to put it another way, if a person had a history of consistently making statements that proved inaccurate, would you continue to put faith in anything that person said?

The obvious answer is that you would choose the advice of someone with a proven track record of being correct. To do otherwise is pure folly.

Yet the American people continue to follow the foolish path. In so doing, they act against their own best interests.

For instance: Why do people continue to believe that following the advice of Federal Reserve Chairman Ben Bernanke — or his predecessor, Alan Greenspan, for that matter — will lead us to the end of the economic malaise in which we currently languish? Greenspan’s easy-money policies created the housing bubble that burst in 2008. Bernanke, who replaced Greenspan in 2006, continued Greenspan’s policies through the crash and beyond. And the housing crash and ensuing Great Recession (which is really a depression) blindsided him, if he’s been telling the truth.

As late as mid-2007, Bernanke said he thought the economy was behaving perfectly and would continue to expand and prosper.

But there were many who recognized otherwise.

In 2007, Peter Schiff published his book Crash Proof: How to Profit from the Coming Economic Collapse. He obviously saw what was looming on the horizon.

In the December 2006 issue of my newsletter, The Bob Livingston Letter™ I wrote:

The U.S. housing market is the largest market in the world. You can imagine what economic madness lies ahead.

The housing bubble was created to burst. It is a mess and the whole world is holding its breath. Hot air will not support anything, but this is the foundation of the housing bubble.

And as far back as March 4, 2003, Ludwig von Mises Institute adjunct scholar Frank Shostak wrote on

If the pool of real funding is in trouble at present then this is likely to undermine various markets including the housing market. Moreover, the more aggressive the Fed’s loose stance is, the worse it is for the productive capacity of the economy. This in turn raises the likelihood that the liquidation of past excesses is likely to be imposed in earnest this time around.

Observe that the likely burst of the housing market bubble is on account of the decline in the pool of real funding and not a tighter stance on the part of the Fed. This contradicts the popular view, which holds that as long as the Fed keeps interest rates at low levels the housing market will remain strong.

And Congressman Ron Paul, who is the only Presidential candidate who warned of the coming bubbles and has preached against inflation and in favor of sound money for 30 years, also saw it coming.

So what gives? Why were the elite “experts” surprised?

The truth is, they weren’t. Some may have been, but certainly not Greenspan and Bernanke. They just want you to believe they were “surprised” by the events they orchestrated. In truth, they have overseen the greatest criminal enterprise to ever exist.

Through its money-printing policies, the Federal Reserve has presided over the theft and plunder of the wealth and savings of the American people that is unprecedented in history. Their masters love them because they have transferred trillions of dollars of wealth from the American people to the money creators through devaluation of the currency.

Last week, I made an effort to explain the Federal Reserve and how it came to be to the 95 percent who do not understand it. Now, I’m going to try to explain inflation.

This is something that probably not one in a million people understands, yet is an issue that is of utmost importance. Your financial health and well-being rests upon this understanding. When you do understand it, it will affect every financial and political decision you make.

Some consider inflation rising prices. That is incorrect, rising prices are simply symptomatic of inflation.

Inflation is the increase in the money supply and credit. The word “inflation” once applied only to the quantity of money. It meant that the volume of money was inflated, blown up or overextended.[i]

As the money supply is increased, people have more money to offer for goods. But if the supply of goods doesn’t increase — or increases at a slower pace than the money supply — the prices of goods goes up. Each individual dollar becomes less valuable because there are more dollars available. This leads to more of them being offered for a commodity. A “price” is an exchange ratio between a dollar and a unit of goods. When people have more dollars, they value them less. Goods then rise in price, not because there are fewer goods than before, but rather because there are more dollars available.[ii]

Continued inflation caused severe distortions within the U.S. economy and in financial relations around the world. At home, an artificially created “easy-money” policy encouraged people to incur more debt for new houses, new cars, new appliances, etc., at prices that continued to rise. Businessmen were encouraged to venture on new undertakings that could not have been profitable under stable monetary conditions. It led to rampant speculation in real estate, securities and other things; and it became so rampant, in fact, that things such as real estate began to be thought of as an investment.[iii]

This sounds like something that was written within the past year or two to describe the crash. But, in fact, it comes from a publication first published in 1955. That is why I say that it is impossible that Greenspan and Bernanke didn’t see what was coming.

But why do governments want — nay, encourage — inflation? Schiff explains it very well. He writes that inflation is the government’s silent partner and is used to secretly confiscate the public’s money:

There are five reasons for creating inflation:

  1. Inflation makes the national debt more manageable because it can be repaid in cheaper dollars.
  2. In a democracy full of personally indebted voters, the government will pursue monetary policies hospitable to debtors even as it accommodates the special interests that lend to them.
  3. Inflation finances social programs that voters demand but avoids the politically unpopular alternative of higher taxes, allowing Uncle Sam to play Santa Claus.
  4. Inflationary spending is confused with economic growth, which is confused with economic health. (Of course, GDP numbers are theoretically adjusted for inflation, but that doesn’t mean much if the inflation figures are misrepresented.)
  5. Inflation causes nominal asset prices to rise, such as those of stocks and real estate, instilling in the minds of voters the illusion of wealth creation even as the real purchasing power of their assets falls.[iv]

In my own book, Burning Your Money, I wrote that anything that artificially increases aggregate demand for goods and services is inflation. It could be lowering interest rates, increasing credit or money printing, as the Fed has been doing with its so-called quantitative easing.

This is the uncomfortable truth the money creators don’t want you to know. But why would they want to hide it?

Schiff writes that governments hide inflation because it keeps the interest on national borrowing low, allows the government to keep Social Security payments as low as possible and allows for lower interest rates for consumers, which encourages the phony expansion of the debt-dependent economy.[v]

By hiding the truth, the money creators seek to control the system, or non-system of fiat dollars which they use to control us. Americans believe they have trillions of dollars in savings and investments. In truth, what they have is only numbers, not substance. It is fiat, which is “money” only by the decree of the “authority” of government.

Yet, time after time, Americans listen to the solutions posed by those “experts” that are “in charge” and trust them to tell the truth and do what is best for the country and the economy. And they wonder why, three years after the crash, nothing seems to have changed and the “experts” are pushing for more of the same.

[i]  What You Should Know About Inflation, by Henry Hazlitt, p. 2.
  What Would More Inflation Mean To You?, the American Institute for Economic Research, p. 5.
  Crash Proof, by Peter Schiff, pp. 72-73.
  Ibid, p. 73.

Are We About To Hear The GOP’s Death Rattle?

Is the Republican Party set to take a dive in order to put the Tea Party back in its place? If so, it’s signing its own death warrant and we’ll be hearing its death rattle this time next year.

In a column for, Karen Kwiatkowski writes that she believes the GOP hierarchy is secretly hoping that President Barack Obama wins a second term. Such an outcome would “rally the party troopers and inspire order” lost by the growing Tea Party movement. It’s a theory that would explain many things.

It would explain why party insiders are so staunchly behind Mitt Romney (a two-faced, flip-flopping Northeastern liberal) and Rick Perry (a bumbling, ignorant crony capitalist who has effectively taken himself out of the race) — who also happen to be Bilderberg favorites — despite Tea Party opposition to them. It also explains why there has been such an effort to cut Herman Cain’s legs out from under him with increasingly flimsy-looking evidence of misconduct. (Not that Cain has the wisdom or moxie to change anything, but he’s clearly off the Republican reservation.) It also would explain why there was such a push by insiders to prod New Jersey Governor Chris Christie into the race.

Finally, it explains the party propaganda machine’s overt efforts to marginalize and minimize Ron Paul, the only candidate to pose a stark contrast to Obama and with the broad appeal needed to take him out in November.

Kwiatkowski, a candidate for Virginia’s 6th Congressional District, notes that Republicans in her State are upset that hard-core conservatives are challenging party-selected insiders by running against them in primaries or as independents. It’s a rift that led Republicans to boot from party rolls the State’s attorney general and some other elected Republican office holders.

She sees a similar rift developing between Party elites and Tea Party members across the country.

Joining the Tea Party’s call for smaller government, an end to crony capitalism and foreign entanglements are four segments that could form a nascent party, she writes. It’s possibly the new “Fed-up” party Senator John McCain (R-Ariz.) predicted days ago could soon rise.

Those segments are Democrats, especially the anti-war crowd who are becoming more aware of the influence of the Federal Reserve and crony capitalism; independents frustrated with the uniparty spending machine in Washington; Libertarians, who see their party growing in popularity, especially with the under-30 crowd; and Republicans fed up with the party’s big government shenanigans that have gone on since the Nixon years.

It’s clear the party elites are pushing to nominate a sure loser, just as they did in 2008 with McCain — which, ironically, led to the rise of the Tea Party in the first place.

But if the GOP elites think four more years of Obama will drive the Tea Party herd back into the corral, it’s making a serious miscalculation. Or, as Kwiatkowski writes, “By the time the GOP controllers realize that the Tea Party Constitution Liberty and Peace Train has left the station, the Grand Old Party will have gone the way of the Whigs in 1852.”

Forage For Variety In Diet

Foraging your area for edible wild plants is a great way to give your diet variety. Different areas support different plants, so providing an exhaustive list in this venue is impossible. However, following are some plants found throughout most of the continental United States:

  • Asparagus: In the spring it resembles a cluster of green fingers. Mature plants have fernlike foliage and red berries. It’s best to eat the young stems before leaves form. Steam or boil them, as diarrhea or nausea can occur when you eat asparagus raw.
  • Bearberry or kinnikinnick: These berries are edible raw or cooked. Tea can be made from young leaves. The Indians also used it as a form of tobacco for smoking.
  • Beech: Mature beechnuts are an excellent survival food because of the kernel’s high oil content. Break the thin shell and eat the white meat inside. Nuts can also be roasted, then pulverized and used to make coffee by boiling or steeping.
  • Blackberry and raspberry: The fruits and peeled young shoots are both edible and tasty.
  • Blueberry and huckleberry: The fruits are edible raw.
  • Cattail: Eat the young, tender shoots raw or cooked. The rhizome can be pounded to remove the starch and used as flour. When young and still green, the female portion can be boiled and eaten like corn on the cob.
  • Chicory: All parts are edible. Can be eaten as a salad or boiled to use as a vegetable. Roots can be roasted and made into a coffee substitute by pounding them into powder and boiling.
  • Cranberry: The berries can be eaten raw or boiled in a small amount of water and sugar and turned into a jelly.
  • Dandelion: All parts are edible. The leaves can be eaten raw or cooked. The roots can be boiled and eaten as a vegetable. Roasted, the roots make a good coffee substitute.
  • Daylily: Young green leaves and tubers are edible raw or cooked.
  • Duchesnea, wild or Indian strawberry: The fruit is edible.
  • Elderberry: Eat the flowers and fruits. Soak the leaves in water for eight hours, discard the leaves and you have an excellent drink.

Article continues below…

What To Do
When Disaster Strikes

Imagine this …

Terrorists attack the U.S. power grid—and in an instant, you’re without electricity… transportation… water… food… and reliable medical care.

Could you and your family survive?

The harsh reality is … you never know when some sort of catastrophe is going to hit—and you never know how bad it will be or how long it will last. The only way to guarantee that you and your family survive is to be prepared.

It’s easier than you think. You can get simple, proven steps for surviving just about any kind of disaster–and come out of it financially stronger… more independent… more self-reliant… and even healthier than you are now. Just click here.

  • Hackberry: The fruit is edible when it falls from the tree after ripening.
  • Hazelnut or wild filbert: The nuts are edible when mature in autumn.
  • Junipers: Eat the berries and twigs. Roast the seeds for a coffee substitute.
  • Marsh marigold: All parts are edible after boiling.
  • Mulberry: The fruit is edible raw, cooked or dried.
  • Nettle: Eat young shoots and leaves. The plants have stingers, so it should be picked wearing gloves and boiled for 10-15 minutes to remove the stingers. Mature stems can be separated and woven into string or twine.
  • Oak: All parts are edible, but some parts are bitter. The acorns should be soaked in water for two days to remove the bitterness. They can then be boiled or ground into flour or roasted and used as a coffee substitute.
  • Persimmon: The leaves are edible raw, or they can be dried and made into tea. The fruits are edible raw or baked.
  • Pine: Seeds can be eaten raw or cooked. The bark of young twigs is edible. The inner bark of young twigs can be chewed. The green needles can be made into tea.
  • Sassafras: The young twigs and leaves are edible fresh or dried, and can be added to soups. Dig up the roots and underground stem, peel off the bark and let it dry, then boil in water to make sassafras tea.
  • Sheep sorrel: The plants are edible raw or cooked.
  • Strawberry: The fruit is edible fresh, cooked or dried. The leaves can be dried and made into tea.
  • Water lily: Flowers, seeds and rhizomes are edible raw or cooked.
  • Wild crabapple or wild apple: The fruit can be prepared like cultivated apples or eaten raw when ripe or cut into slices and dried.
  • Wild fig: The fruit is edible raw or cooked.
  • Wild onion: The bulbs and young leaves are edible raw or cooked and can be used to flavor meats or soups.
  • Wild garlic: The bulbs and young leaves are edible raw or cooked and can be used to flavor meats or soups.
  • Wild rose: The flowers and bulbs are edible raw and boiled. Fresh young leaves can be boiled in water to make tea.

To find out more about edible plants in your region, buy a book from a local or online bookstore. The books will have the added advantage of color photographs to help you identify the plants.

This information comes from my book, How to Survive the Collapse of Civilization. It contains practical, low-cost strategies for coping with global epidemics, terrorist attacks, electrical grid disruptions, food and water shortages and more, and is an excellent source for helping you formulate your survival plan. Order your copy by clicking here.

Paterno, Kardashian, Bialek And Why We’re No Longer Slouching Towards Gomorrah

In 1996, famed jurist and Supreme Court nominee Robert H. Bork wrote a book titled Slouching Towards Gomorrah: Modern Liberalism and American Decline. In it, Bork posits that the American and Western cultures are in a state of decline, and the cause of the decline is modern liberalism and the rise of the New Left.

I’m not debating his premise; but if we haven’t actually reached Gomorrah in the 15 years since Bork published his book, we’re certainly headed there at a full sprint. Recent news items display this distinctly.

Joe Paterno, an icon and revered coach at Penn State, apparently learned that one of his former assistant coaches was assaulting young boys but abdicated his responsibility to inform law enforcement, choosing instead to pass the information along to the school’s athletic director and thereby wash his hands of the affair.

Kim Kardashian, famous for simply being famous and with a show watched by hundreds of thousands of people (many of them impressionable young girls), married and now is divorcing husband Kris Humphries after just 72 days. The wedding earned her a reported $10 million, which comes to almost $139,000 per day of “wedded bliss.” There is a word for that.

Sharon Bialek has come forward to claim GOP Presidential hopeful Herman Cain attempted to sexually assault her when she approached him for job advice. Either she’s a liar of Clintonesque proportions, or Cain is indeed a sexual predator. Either way, the affair is a sordid reflection upon society.

It seems fewer and fewer people in the public eye choose to do what’s right, what’s proper, what’s moral. Our society as a whole has rejected God, and there is a segment of society that would have us accept as normal the depravity of a carnal lifestyle, as was the case in the cities of Sodom and Gomorrah. Don’t be surprised if our country’s fate is similar to that of those two cities.

Seeking ‘Tools’ To Use Against Gun Owners

Under fire for lying to Congress about the “Fast and Furious” gun-walking scandal, U.S. Attorney General Eric Holder revealed exactly what was behind the government’s policy that resulted in the government letting guns flow into Mexico.

There is a two-pronged policy underway. First, it’s an effort to ratchet up the lawlessness along the U.S.-Mexico border and gin up the war between drug cartels. Though Holder would never admit this, the CIA and the Drug Enforcement Administration are imbedded with Mexican troops and the drug cartels and working both sides of the war, in violation of Mexico’s laws.

The lawlessness has spurred the Mexican legislature to push for a new National Security Law — based on the USA Patriot Act — that would give the Mexican government broad powers to spy on its citizens and remove their rights. It’s also a boon to U.S. financial institutions that are laundering money for the drug cartels.

It’s also part of the Barack Obama Administration’s admitted strategy to work behind the scenes to implement greater gun control in the U.S. And that’s exactly what Holder was referring to when he told Congress:

But beyond identifying where errors occurred and ensuring that they never occur again, we must be careful not to lose sight of the critical problem that this flawed investigation has highlighted: We are losing the battle to stop the flow of illegal guns to Mexico.

One critical first step should be for congressional leaders to work with us to provide ATF with the resources and statutory tools it needs to be effective.

Don’t be fooled by the three-ring circus surrounding this affair. Seeking additional “tools” to use against American gun owners is first and foremost the goal of operations like “Fast and Furious.” That the Mexican government can also gain an excuse to remove more of its citizen’s rights while propping up financial institutions and creating a climate that allows more drugs to move into the U.S. is just gravy.

Blood Clots

We don’t hear much about blood clots or heart attacks in young people, and that is because blood sludging is related to aging.

Nattokinase is a natural anti-clot insurance, known and used by the Japanese for a thousand years. One capsule every eight hours or so would be good to maintain free blood flow and reduce sludging.


Educating The 95 Percent

“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.” — Thomas Jefferson

According to my very unscientific analysis, only about 5 percent of the conscious American adult population (those who bother to follow issues at a minimum level and vote in national elections) truly understand inflation and how the Federal Reserve’s policies are stealing your wealth every day. Sadly, that percentage becomes frighteningly lower when combined with the rest of the American sheeple.

Remember that out of a voting age population of about 218 million people, only about 129.4 million cast votes in the 2008 Presidential election. The rest couldn’t trouble themselves enough to lay aside their bag of chips and can of Coke, turn off the idiot box, get off the couch and trudge down to the polling place to push a button on a machine or fill in a blank on a voting card.

I and many others write often of inflation’s devastating effects. Yet the hue and cry for the elimination of the Federal Reserve, the tarring and feathering of Ben Bernanke (and Alan Greenspan), the return to sound money and the elimination of fiat currency are seldom seen outside of Austrian economic blogs or heard outside of Ron Paul rallies.

Oh, yes, Rick Perry once called Bernanke “treasonous.” But he backed off because he couldn’t really explain what he was talking about. And Newt Gingrich has called for an audit of the Fed, but that didn’t resonate with his followers so it’s gone the way of his criticism of “conservative social engineering” and belief in man-caused global warming in Newt’s lexicon. Now Newt’s simply angling to be Herman Cain’s running mate.

Of the politicians on the national stage, only Congressman Ron Paul has consistently preached about the evils of the Federal Reserve’s monetary policies, the dangers of inflation and the need to truly rein in government spending. Yet, if you believe the national polls, Paul is garnering only about 10 percent support from so-called conservatives.

Americans sought “Hope and Change” in 2008. Fed up with eight years of President George W. Bush’s ill-advised wars and profligate spending, they elected a Marxist who offered the vague promise that he would “fundamentally transform America.” His statement to Joe the Plumber that “we need to spread the wealth around” was either ignored, dismissed or embraced by about 60 percent of the voters.

Americans wanted change, but they didn’t get a change in direction. They got acceleration. All President Barack Obama has done is double down on George W. Bush’s policies and push us closer to European-style socialism — which is failing rapidly in Europe — and move us ever closer toward complete totalitarianism. The only difference is the rhetoric over where the wealth should come from and which special interest should get the most of it.

But this is not just about Bush and Obama. Federal spending increases year after year and Federal power grows year after year regardless of whether the President has a “D” or an “R” after his name and regardless of which party controls Congress.

America is a police state, a military state, a welfare state. It’s all made possible by the Federal Reserve and increased Federalism.

The Federal Reserve was conceived in a secret meeting at a wealthy retreat on a barrier island called Jekyll Island, Ga., in 1910. The principals involved were: Senator Nelson Aldrich, the father-in-law of John D. Rockefeller Jr., representing Rockefeller interests and the Standard Oil crowd; Paul Warburg, a German banker representing MM Warburg of Hamburg, European banking interests (including the Rothschilds) and Kuhn Loeb in the U.S.; Henry P. Davison, partner in J.P. Morgan and chairman of Bankers Trust Company (a consortium of New York’s biggest banks); Benjamin Strong, vice president of Bankers Trust; Frank Vanderlip, chairman of National City Bank; and Charles D. Norton, president of the First National Bank.[i] Assistant U.S. Secretary of the Treasury Abraham Piatt Andrew is also reported to have attended. [ii]

Their work later evolved into the bill — the Federal Reserve Act — that formed the Federal Reserve and that was rammed through the House and Senate in 1913. The House version passed by a 287-85 margin, and most Congressmen didn’t even know what the bill was about. No amendments were allowed, and members were only given the opportunity to vote for or against. The bill was named for Representative Carter Glass of Virginia (a director of the United Loan and Trust and the Virginia Trust Company).[iii]

After passing the House, the bill went to the Senate where it took exactly four and half hours to debate and pass in the Senate by a 43-25 margin. Named the Owen Bill after Senator Robert Latham Owen of Oklahoma — a major stockholder of the First National Bank of Muskogee — the Republicans did not even see the conference report, which is normally read to the floor, and some Senators said they had no knowledge of the contents of the bill. President Woodrow Wilson signed the bill the same day it was passed.[iv]

And guess who was appointed to head the New York Federal Reserve? None other than Benjamin Strong, J.P. Morgan minion, former vice president of Bankers Trust and one of the original conspirators that met on Jekyll Island to draft the bill that would create the Federal Reserve.[v] Likewise, the Washington Federal Reserve was headed by two Morgan men, two Rockefeller minions, two men of undetermined affiliations: a prominent Alabama banker and an economist with vague family connections to Morgan family interests.[vi]

What did this law do? It established a private bank that controlled U.S. monetary policy. Although named Federal Reserve, the bank is not a part of the Federal government. It is a private for-profit entity. It holds no reserves, but lends “money” to other banks — both in the United States and abroad — and the Federal government. The loans must be paid back with interest. But the money the Fed lends is not real money. It’s simply a kited check.

It has the authority to arbitrarily set interest rates and lend money to whomever it wishes, and it has no real accountability to Congress or the President.

The Fed has a monopoly of the issue of all bank notes. National and State banks can issue only deposits, and the deposits are redeemable only in Federal Reserve Notes. All banks are forced to become members of the Federal Reserve System. The Fed is the lender of last resort, and that power allows it to inflate in order to bail out banks.[vii]

How does inflating steal your wealth? I have written before that even if you stored your dollars 40 miles deep, the money creators can steal the purchasing power of your paper money.

It is as simple a concept as supply and demand. With more money chasing fewer goods, more and more money is required to make a purchase. If you put your money in a certificate of deposit in the bank paying 1 percent interest, but inflation is running at 3.9 percent (the official tally from Washington), then your bank savings are losing money. It is like pouring water into milk. The more water you pour, the less milk is left.

Everyone is hurt, particularly those on a fixed income. The more money that is spewed out, the more worthless each one of those paper dollars is. In the past 100 years, the dollar has lost 95 percent of its value. Put another way; it now costs $1 to buy what once cost 5 cents.

This is no secret to the elites, although it is rare they will tell the truth. In 1967, long before he became Fed chairman and began dissembling, in a moment of candor Alan Greenspan wrote:

As the supply of money increases relative to the supply of tangible assets in the economy, prices must eventually rise. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.

Now spread this message to your friends and family.

And consider this: The next election will be a referendum on the economy. Only one Presidential candidate has demonstrated an understanding of what has brought the U.S. economy to this point. Only one candidate predicted the bursting of the housing bubble long before it came. Only one candidate has been consistent for 30 years. It’s Ron Paul, and a vote for anyone else is a vote against your own pocketbook.


[i] The Federal Reserve Conspiracy, by Antony C. Sutton, p. 75.

[ii] The Creature From Jekyll Island: A Second Look at the Federal Reserve, by G. Edward Griffin, p. 5.

[iii] The Federal Reserve Conspiracy, p. 88

[iv] Ibid.

[v] A History of Money and Banking in the United States: The Colonial Era to World War II, Murray N. Rothbard, p. 264.

[vi] The Case Against the Fed, Murray N. Rothbard, p. 124.

[vii] Ibid. p. 119.