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United States Of Europe

December 1, 2011 by  

United States Of Europe

Today’s sovereign debt problems in Europe and the United States create the single biggest risk for Western economies. In order to deal with the economic challenges, the European Union is becoming an increasingly integrated and centralized structure.

I have never been a big fan of the EU and its currency, the euro. When the European Union signed the Maastricht Treaty in 1992, a core group of European countries agreed to adopt the euro as their main currency, with the object of eventually replacing individual currencies, such as the deutschemark, the French franc and the Italian lira. Seven years later, the euro was officially introduced in non-physical form. Finally, in January 2002, the euro was introduced in physical coins and notes.

At that time, I thought it impossible to bring so many different countries together and have all of them adopt a common currency. In my view, these countries were too different from each other to be merged into a single currency bloc, given huge economic and cultural differences, as well as different languages. Because I am Swiss, I am always skeptical of large and centralized political systems like the EU and even the United States. However, I have to admit that the European Union and the integration of many countries over the past 20 years worked much more smoothly than I thought it would.

I was also surprised by the convergence of European bond premiums. In the old days, it was normal that Italy had a higher risk premium than German government bonds. But over the years, that yield spread narrowed so much that credit markets viewed the credit risk of Italian bonds as being equal to the risk of German government bonds — even though Germany appeared to be in a much better position.

The European debt crisis brought this credit risk convergence to an end, and spreads started to widen again. I consider this a very healthy development, since the market has been repricing the risk of these bonds. The result is that Italy pays more for its debt, because the market perceives it to be riskier than Germany. What should the yield spread be between these two countries? This question is hard to answer, but I believe it is clear that the difference should be quite significant.

Earlier this week, Italy was issuing bonds with a 12-year lifetime at a yield of 7.30 percent, and Belgium issued 10-year bonds at a yield of 5.65 percent. Even though these yield levels look extremely high, the rates are down slightly from their peaks several days ago. For quite some time, it was not even clear whether Italy and Belgium could successfully place bonds in international markets.

In comparison, Germany can borrow from financial markets at a rate of below 3 percent for 10 years and is paying just 3.02 percent on 20-year bonds. Italy is paying more than twice the yield on its bonds than Germany. In addition, Italy’s funding costs are significantly higher. In fact, Italy’s funding costs are at levels not sustainable in the long run. The same is true for other EU member states such as Spain, Portugal and Greece.

The challenge the EU faces is that for most of its member states, the overall funding costs are now significantly above levels that can be considered sustainable. In the short run, these countries can be supported by the European central bank, the European Stability Fund or even the IMF, but this will not solve the real underlying problems in the long run. In my view, it is a not a question of “if” but “when” the EU will start issuing Eurobonds, similar to Treasury bonds in the United States. The money raised from those bonds would be used to finance individual member states through a central funding institution that acts like a Eurobank. The Eurobank would directly negotiate funding terms and conditions with individual member states that need money.

There is currently a lot of debate about this, but I don’t think the European Union has another option that would bring down borrowing costs. This also means that economically strong countries like Germany would probably pay slightly higher rates, but would still have the opportunity to issue its own bonds — if it could do so at lower yields. From a political and economic point of view, I don’t like this development, but the question today is: What other options does Europe have? In my opinion, there are none.

Again, I don’t like a setup like the EU, a centralized system in which an individual member state loses more and more of its voice. But Europeans have taken this project so far that I think the point of return is far behind them. It is absolutely critical for the EU to bring down funding costs, raise confidence among financial investors and stop the attacks on individual member states. All of these practices put the future of the EU at risk.

I think the EU is an odd concept and setup, and I doubt it will work very much longer. But now, there is no way back. That is why I think Eurobonds will be issued soon in order to calm financial markets.

Eventually, U.S. Treasury bonds and Eurobonds are going to be almost the same. Also, the underlying debt problems of the U.S. and the EU are going to be similar in size, and I am almost sure that both will print money to deal with the debt burden. The likely consequence will be that both are going to have structurally weak currencies, and investors should make sure not to hold too much exposure to these two currencies.

I don’t know which of the two currencies will be stronger in the long run (or should I say “less weak?”). Against the U.S. dollar speaks the fact that its global influence is in decline, after being the world’s dominant currency for more than 60 years. On the other hand, the euro is still a relatively young currency; and the fact that so many economically and culturally diverse countries form the EU does not make it seem the better alternative. However, I am surprised how different the United States and Europe are in their approach and willingness to deal with the current debt crisis.

The current focus of international investors is clearly on the European situation. There is a great deal of urgency to address the debt problems. As a result, a number of governments have been toppled in order to force reforms. The EU now needs to decide whether it wants to become a true political union with a centralized government, in which the influence of individual member nations is reduced further.

The current situation is similar to the United States’ situation between 1777 and 1787 when the 13 former British colonies formed a union (“Articles of Confederation and Perpetual Union”). The various problems with this decentralized setup led to the adoption of the U.S. Constitution, which made all member States part of a single republic with a strong central government. However, even if Europe were to decide to form a closer union, doing so would not guarantee success.

The United States’ situation today looks more stable only at first glance; the truth is that the situation is not much different from the one in Europe. What worries me with the United States’ situation is that not even the Congressional supercommittee has been able to devise a plan to reduce debt, and everything seems to be stuck in a political deadlock. How much longer will international financial markets tolerate this situation? I doubt it will be for very long.

Daniel Zurbrügg

is the Managing Partner of Alpine Atlantic Global Asset Management, a Swiss-based independent investment management firm. The firm provides clients with independent investment management, asset protection and family office services and is the issuer of the global investment newsletter Echo From The Alps. With a global network of partners, Alpine Atlantic's aim is to provide clients with true "turnkey" solutions for global investing. Prior to setting up Alpine Atlantic, Daniel held various positions with other banks and financial companies. Daniel is a Chartered Financial Analyst and regular guest speaker at international investment conferences.

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  • s c

    To me, the core issue that never goes away is the conspiratorial relationship of central bankers and politicians. The despicable behavior of one group feeds the other, and nations literally pay the price.
    Central banking is a false religion, and the worship of money and the power that goes with it can bring any country to its knees. Economics could be viewed as ‘central banking for dummies.’ It is virtually ignored in schools from grade school and all the way through the university level.
    The world is about to get a first-class education in economics and central banking. While I normally don’t gamble, this topic is worth consulting odds-makers in various cities around the world.
    I’m betting that central bankers will refuse to do the right thing, and politicians will yield their power to those central bankers. What do you think, America?
    You do care, don’t you, America? It’s time to take that test, and few people have studied the exam material. A failing grade will cost you everything, including your freedom.

    • Warrior

      I smell something terrible coming from the middle east and Europe. And here we have John McCain proposing that amerika be considered a war zone that will of course allow the military to take no prisoners on amerika’s soil. Strap on your harnesses kiddies cause we’re being taken for a ride!

      • http://www.personalliberty.com/asset-and-wealth-protection/united-states-of-europe/?eiid&replytocom=655381#respond Mark

        We have no one to blame but ourselves, the average citizen has become detached, lazy and mostly numbed to the erosion of our freedoms and a gov’t that should be small and unintrusive….good luck cause what we’ve now got is anything but……

        • Rosco1776

          I agree and when I try to tell people they just tell me to take my tin foil hat off. I won’t take it off because it has served me well. I listened to Ron Paul and Peter Schiff before the 2008 crash and rescued my 401K from sure collapse but with the way they are printing money it won’t be worth much anyway. I also invested in metals as a hedge, I’ll take your share jerry sweet. The US never confiscated gold and silver, it was voluntary and many people turned it in but many didn’t and nothing happened. I’ll take my chances, they won’t find it. ;)

          Vote Peace, Prosperity and Liberty, vote Ron Paul 2012 !!

    • wandamurline

      I agree. The dollar right now is worth only about 79 cents…that is why it takes more to purchase the same price tickets as it did 20 years ago. The Federal Reserve needs to be audited and regulated….had Fannie Mae and Freddie Mack been regulated as Bush (don’t get me wrong, Bush had his faults) asked for more than three times during his last four years, maybe, just maybe, the mortgage collaspe would not have been sooooo bad….than Barnie Frank for that one…he caused some of this mess, now he is bailing out without any reprecussions for his actions. Shameless.

      • RobinPC

        I have been living in Germany since 1988. Upon arrival the dollar bought 2.75 German Marks – 4 French Franks – 28 Spanish Pesos – 1,000,000 Italian Lire and the list went on and on. The only currency with more value was the British Pound. Then in 2002 the Euro came into play, suddenly the dollar was worth less than an Euro (todays exchange rate is $1 = 67 Euro cents. HOW did all the other countries, who had currency well below the value of the dollar, suddenly (with nothing visible or noticeable taking place) turn their worthless money into more value than the dollar? This criminal action has been the downfall of many of the EU countries, like Greece and Italy, not to mention Iceland, Portugal, Ireland and others on the edge of bankrupsy – due to – the fact that their previously worthless money had driven the inflation to several hundred percent above what it was when the individual countries had their own currency. The German Mark for example was converted into ONE Euro – yes one to one changeover, and that is worth more than the dollar! I wonder which criminal idiots were behind that, and why!

        • Ginnisickel

          Wrong! 1.95583 Deutsche Mark equalled 1.00 Euro.

        • MNIce

          Look at it like an Initial Public Offering of a corporate stock: the issuer sets an arbitrary number of shares to offer, makes an educated guess of the value of the company, then divides that amount by the number of issued shares. The market determines the correctness of the valuation by bidding higher or lower for the shares. If the corporation later offers more shares, the value of the older shares is “diluted” because the same market value is now spread across more shares (this is very much like inflation). The difference is that the corporation becomes more valuable by the amount of other medium of exchange (money) it acquired through the additional shares, whereas when a central bank issues more fiat units, the issuing nation does not acquire more value except to the degree that it discharges debt. This apparent benefit is eventually neutralized, because the “acquired asset” is of the same substance as that which was exchanged for it, unlike the trading of shares for money.

          Germany got away with an artificially high initial peg of the mark to Euro because of its strong political and economic influence. I would guess it faced some fallout in the markets for a while because of this – i. e., there would have been a distortion in exports and imports for a time until this was sorted out. You can cheat in the market for a while, but eventually it catches up with you. (E.g., you probably bought fewer German goods for a time because they became overpriced relative to your dollar holdings.)

          Habitual borrowing with no clear repayment path is one of the most common forms of cheating in the market, and central banks are a means of enabling that to continue for a longer period. However, the game cannot continue indefinitely, and we’re seeing the consequences happening now.

      • dale

        sorry but the $1 is worth .002 cents now ? from 1913 to today
        a $50 double eagle will still fill the wagon or now truck with food
        or get the finest 3 peace suite, try that with a paper $50

        • JC

          Exactly right. The dollar is in reality quite worthless and the US has actually been dead broke since the 1930′s.

          • ga5ry

            You are mostly right, and I agree with alot of what you said. But this just brings to (at very least MY) mind, the real truth about ANY CURRENCY (no matter what country our from). Currency has long been ‘sold’ to the masses as nesacary in order to do everyday business,trading,etc. And the mjasses ‘baught’ the idea. The REAL TRUTH about any currency, throughout the entire world is just this… There seems to me to be aa common blindness revealed in all of the different societies in relation to its own currencies. And all economies, and societies have failed to see. Americans especially are guilty because when the FEDERAL RESERVE was formed it was the beginning of the end of our currency being ‘backed’ by gold or silver. Or muchless anything at all.It was gradual, but the people should have been able to figure out something wasn’t quite right. Fast foward to the 70′s when Nixon completely did away with the Gold Standard completely. And ever since then our governmen has been doing nothing to gain financial strength other than to tell the Federal Reserve to print up more. Thats it! But you see, now we are not just talking about some ‘OTHER’ society, or another economy. No, we aren’t even reffering to a time in our countries past history. Hell, we can’t even blame our own parents for this one! And if you are reasonably able to be honest with YOURSELF, you will notice how the obscurity that we seemed to be experiencing when we first began to explore this problem, and possible reasons, or maybe even solutions for it , it seems to have disappeared. And if you’ve gotten this far, I shouldn’t need to say more… But some will still be on the edge of their seat wondering what I am insinuating. So I will explain what I am trying to explain without comming right out and saying it. Atleast until now… You see, when our government formed the Federal Reserve in early 1900′s, the people of that time probably should have noticed, in some way that there was something fishy going on! But, then, that is me just pointing my finger. I wasn’t there, and I didn’t live back in those days. Just seems logical to ASSUME for me..It Is SO EASY to point a finger instead of looking at ourselves. This is especially true when we are feeling the need to find blame for our problems! Either way the people of the time saw nothing, or if they did, they did little or nothing to bring it into focus. so I will just say they saw nothing wrong with the whole idea. They likely could have even saw it asd a very good thing for them But as previously stated; it was the beginning of our loss of our currency being ‘Backed’ by Gold, or Silver. Not THE END by any means. just the start of a very long decline in value of U.S.Dollar.Now I will explain all the word games I used earlier.Nixon (completely) abolished our currencies Gold Standard. Which simply put; every U.S.Dollar that was put into ‘Circulation’ in the U.S. had a certain amount of gold, or silver in our own Governments ‘RESERVE’, or bank, or more likely Fort Knox would have been the safest place. That being said,from the time Nixon was Pres. up to date,(and this is the hard part to swallow) ANY, AND ALL OF our own U.S. currency has (basicly) only been worth the paper it was printed on, and that is it! So just to make sure you are still with me here, NOW what we are talking about (this gigantic worldwide economical disaster that is looming somewhere in the not so distant future) that we are talking about, and have been since the start of this discussion is something that WE HAVE (OURSELVES) played a MAJOR PART IN! If not dirrectly involved, we must (upon Honest appraisal) at very least admit that WE ALLOWED THIS PROBLEM TO GROW AND FESTER because we must be able to say that we noticed it as a major problem long ago,(for whatever reason)… And now, added with this newly discovered responsability we must bear along with the need, and Intrest that WE had stirred not only in ourselves, but that of others. It now has us feeling as if we had somehow just kinda put the noose around our own neck!!! To sum up my own feelings about the whole currency issue I’ll say this in ending: Governments, Parlimens, dictators, and whoever else or whatever else groups, or individuals had Great Influence over the masses of peoples which either needed to have a Leader, or Dictators who (basicly) took control over the peoples ALL HAVE THIS IN COMMON: THEY HAVE ALL SINCE ANCIENT TIMES UP TO THE PRESSENT (and this includes the U.S.) RULED BY KEEPING THEIR OWN PEOPLE IN FEAR. I would suppose so the people felt atleast some degree of security by having these tyrants close at hand. One other GREAT FALSE BELIEFDS that people have since ancient times been consistently AQUIREING is; THE ABILITY TO BELIEVE THAT A PEICE OF PAPER WITH ONE NUMBER ON THE FACE IS, WORTH MORE OR LESS ‘VALUE’ THAN THE OTHER, SIMPLY DETERMINING THE VALUE BY THE NUMBER ALONE WRITTEN ON THE FACE… There is no difference in the peice of paper at all! So, as long as people have FAITH that there country currency is worth more than the paper it is written on, this problem MUST BE ADDRESSED BEFORE the current currency, and, or financial problems can even hope to begin to be addresased successfuly…

    • mjs

      European countries that make up the EU and the US have differing structures, constitutions and complexities, yet the US financial problem is not that complex – “There are no easy answers but there are simple answers, we must have the courage to do what we know is morally right.” Our elected politicians must never be allowed to spend more than what’s taken in on an annual bases through a mandatory balanced budget amendment. “Few men have virtue to withstand the highest bidder.” Lobbying and Campaign Contributions as currently allowed, must be made illegal. The high moral principles the US was founded on must be the guiding light to any/all corrections. “A society that would give up a little liberty to gain a little security will deserve neither and lose both.” We the American people must never allow our politicians to use any excuse (no matter how highly idealistic the promise is conveyed) to reduce our individual freedoms, overburden our society with taxes, and/or spend more than is taken in.

      • steve

        a balanced budget amendment is great until…some little issue arises like a terrorist attack that somehow manages to send us into another war…then guess what….sorry but we will have to raise taxes because of the budget must be balanced…

        • independant thinker

          Depends on how the amendment is written. I have seen one proposed balanced budget amendment that had a provision for allowing deficit spending in the case of a declared national emergency with approval by 3/4 of congress.

          • Vicki

            If we had maintained the independence and neutrality our forefathers intended we would not have these problems. Not isolationist. Netural. Avoiding foreign entanglements.

            For instance had we been doing as our forefathers intended 9/11 would have looked like this.

            http://www.scottbieser.com/sept11.html

    • independent thinker

      Here is something to think about. I got this idea from a novel by, I think Larry Bond. Europe is having grave economic difficulties like today. Germany and France, being the strongest countries economicaly and militaraly, ally and attempt to take over the European economy. Of course this leads to war which causes the US to get involved.

  • Vicki

    The central bankers have no power that government does not give them. Take back the coining of money. Tell the fed to enjoy printing fiat money but it is no longer “legal tender”.

    IT is that easy to remove the power of these central banks.

    go here https://secure.downsizedc.org/etp/honest-money/ and use the tool to send email to your congressmen demanding a return to honest money.

    • s c

      Vicki, I hope you’re not a pure optimist who confuses what you want with ‘what America needs and deserves.’ American politicians have had many years to polish their indifference and their incompetence. And, they have many powerful friends who will do anything to protect any perceived threat from mere “citizens.”
      They have created a system that has one goal, and that is to survive in spite of anyone or anything that might end that system’s existence.
      From what I’ve seen, unless and until Americans treat politicans the same way they’d treat central bankers and the Fed, there is absolutely NO WAY things will change. To make matters even worse, many Americans feel that ‘the devil you know is better than any new one.’
      I hope you’re right, Vicki, but this battle is uphill all the way, and real allies are hard to find and keep.

      • Vicki

        Politicians need to be voted out on a regular basis unless they strictly follow their oath. I do not expect them to respond to our demand for honest money. I do expect that when enough of us demand it and they still do not then we can see them for what many here already know them to be.

        Also some politicians will change their tune cause they do want to be voted back in. If they get enough complaints they will bend.

        Unless of course the vote is as obviously rigged as it was in Nevada.

        • mrbill

          Until we get some politicians that don’t get drunk on power when they get to Washington our problems will not be solved. We need term limitations in both the house and the Senate. If they know they will be there a limited time maybe, just maybe, they will do what is best for the country instead of what is best for them.

          • DaveH

            Why do so many people think term limits will change anything? How would that keep out the same old buddy club? How would term limits change voter ignorance? Why would having several consecutive corrupt politicians serving one term or two terms be any different than having one corrupt politician serve many terms? Take Obama for instance. He’s only had one term, yet he’s done more damage to our country than almost any other predecessor.
            There is no substitute for voter education.
            We need to end Government involvement in our children’s educational choices, thus stopping the Propaganda that our children are being subjected to. We have hired the Fox to watch our Hen House. It’s high time that we fire that Fox.

          • DaveH
          • Helen2

            Dave H: While I agree with you that we need to end government involvement in our children’s education, I graduated from high school in 1965 before the Department of Education was created. I have learned more about Hamilton and our government from websites mentioned on this blog than I did while in school!!It’s not because I forgot what I was taught because I loved history and read things about history not required of me, but today was the first time I learned that Hamilton was not happy with how the constitution was set up and that he wanted a strong central government. I’m still in shock and I read it over an hour ago. To my family I have always been the go to person for history questions. I can hardly wait for the next question because my whole family is going to learn this. Thank you for posting that website.

            I must say that reading the posts today has been a pleasure in addition to being educational. No name calling or inappropriate remarks. It has been so nice.

      • Vicki

        SC writes:
        “I hope you’re right, Vicki, but this battle is uphill all the way, and real allies are hard to find and keep.”

        Defending freedom has never been easy. Allies are hard to find and keep but easy to recognize. Just ask them about the US Constitution and see how much they believe in freedom.

      • Walt

        SC says: “And, they have many powerful friends who will do anything to protect any perceived threat from mere “citizens.””.

        On June 4th, 1963, President John F. Kennedy (the 35th President of the United States 1961 – 1963) signs Executive Order 11110 which returned to the U.S. government the power to issue currency, without going through the Federal Reserve.

        Less than 6 months later on November 22nd, President Kennedy is assassinated for the same reason as they assassinated President Abraham Lincoln in 1865, he wanted to print American money for the American people, as oppose to for the benefit of a money grabbing war mongering foreign elite.

        This Executive Order 11110, is rescinded by President Lyndon Baines Johnson (the 36th President of the United States 1963 to 1969), within hours of Kennedy’s assasination, on Air Force One from Dallas to Washington. Seems a bit odd to focus on that one issue with such urgency and misplaced priority…don’t you think?

        • independent thinker

          Given how corrupt the Johnsons were no.

    • Lastmanstanding

      vicki, it is the bankers that control the govt. The fed is NOT a govt agency…IT IS THE LARGEST BANK IN THE WORLD…ALONG WITH THE EUROPEAN CENTRAL BANK. THEY CONTROL ALL OF GOVTS.

      Isn’t it suspicious that ALL govts need either/or to solve all of their financial indiscretions? Isn’t it also suspicious that our politicians except Ron Paul never mention pursuing the fed?

      Think about all of the banks in the world lending money that is back by nothing, costing virtually nothing and charging you money to use it…then they (with the govts help) create an environment where you can no longer keep what you have worked for your entire life. All the while giving the fruits of your labor to those who provide nothing good to the human race…for there vote.

      The system must crash, the bankers must go…that day is mathematically coming whether any of us like it or not.

      It has happened time and time again…no chance of escape when the same lessons have to be learned…over and over and over…

      • http://www.connecticutrepublic.org Not_the_peoples_debt

        FINALLY! Someone who really sees the true picture. Geesh…will people EVER wake the hell up?

        • DaveH

          Not as long as we allow our children to be taught in the Propaganda Schools.

        • Lastmanstanding

          here is some no bs, non stop info…www.sonsoflibertyacademy.com

          or google for the short version…”the greatest story never told.”

          I did the academy for my grandkids…please check it out.

          • Vicki

            Banks are NOT to blame. Government is. In the US WE control the government. And we have failed to do so. Banks only have the control WE let them have. End the legal tender law and the Fed and other banks become just what they have always been. Printing houses. Return our economy to honest money. Gold and Silver coin. Support Ron Pauls honest money act.

            https://secure.downsizedc.org/etp/honest-money/

            Stop blaming private corporations for “forcing” you to do things. Only government (and criminals but I repeat myself.) can force you to do things.

            The fed has NO power not provided to it by government force. The fed controls the money supply ONLY because government gives it the power to do so.

            (bigger) Government is NOT the solution. (bigger) Government IS the problem.

            Oh and tell the OWS crowd that they are on the wrong street.

          • Lastmanstanding

            You need to wake up..you are wrong…think about what you said and get out of the box.

      • dale

        u will find some good free reading , roadtoroota greenspan opened the package he created with Reagen 40 yrs ago for when the $1 hits .000 to take down the ones that run jpm chase it started 5 weeks ago.

    • wandamurline

      Better be buying gold and silver if you want to have anything when the s#!t hits the fan. Don’t hang onto your paper, worthless, money.

      • Dingle

        Better save your dollars when that happens because you can’t wipe it off with coins. At that time neither will be worth anything if gold is also declared illegal.

        After all that has been said so far, by now it should be coming clear that people have to make up for all of the greed, corruption, stealing, etc. An economy is a closed system even if it appears for awhile to be open during the massive printing of money.

    • DaveH

      It is unclear to me, Vicki, just how such a law would pan out. For instance, if mortgage lenders were no longer forced to accept fiat dollars, would/could they refuse to accept them as payment for our home loans? That would lead to a further screwing of American Citizens as if they haven’t had enough already.
      What I would advocate would be ending the printing of new dollars, and replacing them with coins minted in silver or gold, or certificates backed strongly with gold, silver or some other comparable hard assets. And the old dollars would be allowed for legal tender until they were exchanged for new dollars or otherwise disposed.

      • DaveH

        The Free Competition in Currency Act of 2011:
        http://www.govtrack.us/congress/bill.xpd?bill=h112-1098

      • MNIce

        “Bad money drives out good.” So long as FeRNs (Federal Reserve Notes) are claimed to be “legal tender,” they will be offered instead of gold or silver coins. Think about it: if you have a coin containing 1 ounce of silver and Ferns denoting a total of $33 in your pocket, which will you offer at the store first? That’s right, you’ll choose to hoard the silver coin. To get your coin, the merchant would have to offer you a discount for paying in silver.

        And then there’s the “Silver Certificate” game. Once upon a time you could turn in this strip of paper and collect a specified amount of silver coin in exchange. Paper is convenient; it is easier to transport and store securely than high-denomination coin. (The electronic equivalent is even more convenient; it’s really hard to send a physical silver coin through your Internet modem!) The trouble is, it’s too tempting for the government or its designated banker to print more certificates than there is silver on hand. The printing agency gambles that there will never be a run on the Certificates requiring redemption of all of the silver. This is a subtle, but very old form of inflation. It makes the silver seem cheaper and more abundant than it is, when in reality it is the paper currency that is cheap and abundant. The FeRN is the same thing, except that even the pretense of backing metal has been dropped. Its value is perhaps best described as a fluctuating fraction of the Consumer Price Index, i. e., whatever goods you can get people to give you for it.

        One way to tighten the system while keeping it convenient is to have a serial number on every piece of metal used for monetary exchange. If a piece of paper or electronic money transfer data unit is used as proxy for physical transfer of the metal, it must have a matching serial number. If more than one such note (or fractional notes equal to the value of the metal) is issued for that serial number, then one of the notes is counterfeit, whether issued by a crook for personal advantage or by the monetary authority. Likewise, if no metal is found with the note’s serial number, then the note is worthless. It should be possible to set up such a system using Internet technology to verify holdings in real time (with periodic and random public physical audits to ensure the electronic system remains honest). For the audits, I suggest using citizens randomly chosen by local government units in the same manner as jurors are called, along with professional auditing firms. I don’t expect the system to be foolproof, but the point is to make it very difficult and politically costly for the government to cheat the money system.

    • http://www.blogspot.snowflakehell.com Ken Brody

      It appears that politicians have no power except what the bankers give them, and the power of the EU voter is a sop and an illusion. How many EU folks voted for any EU parliament member? How much influence did the IMF, World Bank, BIS and others have on the politics in Belgium? A lot.

      The bankers want the Euro and the EU and a bond market deep enough to support the Euro as a reserve currency. The people want to be left alone.

      • MNIce

        Read “The New Road to Serfdom” by Daniel Hannan. He is a UK representative to the European Parliament. He warns the United States that we are headed for the same mess Europe now has – parliaments, prime ministers and other elected officials have been rendered nearly impotent by “the Administrative State,” of which the central banks are merely a major quasi-governmental component. In the Administrative State, the real decisions are made by the “Expert” bureaucrats, and the elected officials are supposed to rubber stamp them and then speak soothing words to irate constituents about how it is all “in the best interests of everyone.’

        It is worth examining the government model of the Third Reich. I suspect the EU’s administrative state is appallingly similar, except that it is at present somewhat less physically vicious in its treatment of undesirable classes. This is the system Mr. Obama and his cronies would like to impose on us (why can’t they just quit, move to Europe and leave US alone?).

  • John

    What is happening with the banks is not by accident or chance. Many people predicted this situation years ago. Why those who set policy and control these banks let this happen was not because of stupidity or even greed, there must be a more sinister underlying reason of which I can only speculate. There is a way for the EU to correct itself, there are probably a few ways, but it does not matter because this situation was planned and so are whatever future decisions the banks put forth. The only solution that can come from the citizens and politicians is to kick out all the bank heads and replace it with people that have a record of honesty and understanding, otherwise they will steer the ship where ever the hell they want. The fish rots from the head!

  • rosina

    I have disliked the EU since it started. Europe is a wonderful place composed of different cultures, languages and systems. To put them into the strait-jacket known as the EUSSR is to lose the essential character of different countries and its sovereignity. A GREAT PITY!
    I know that many countries applied to make use of the vast EU monies to modernise their countries but when it was time to contribute, they are not so happy about it.
    IMHO, the best I can see is a return to THEIR OWN CURRENCIES, and get rid of the unelected ‘Kommisars” in the EU Commission with their diktats, which do not apply to themselves (what else is new)
    The British Common law for justice is better than the Napoleonic code now in vigour. Of course, I am prejudiced but it was a fairer one. To give this all up is criminal of the Politicians who did so.
    The huge salaries of the MEPS, for doing nothing, plus ridiculous expenses allowed, with NO oversight or proof, is outrageous.
    I jut hope that some countries will get their spirit back and LEAVE this communistic structure. For this is exactly what it is.

  • David in MA

    Farmers call it “Putting all your eggs in one basket”
    People call it Global Economy.
    I call it Socialism.
    Hey, America! How’s it working for you now that Europe is going under?
    And America continues to bail them out…(obozo’s printing company)
    This is a good lesson why socialism does not work and every one and every country suffers and goes broke and there is no incintive to work to save “your” country because it will be re-distributed and all still suffer.

  • http://danthorntons.com Bluff Rat

    I think it was Hitler’s conflict with bankers that gave us World War II. They should not be underestimated.

    • s c

      Bluff Rat, Hitler’s rage was shaped and molded via France and America. Germany was ripped apart by those who knew better, but did it regardless. As bad as Hitler’s influence was, FDR and Churchill (via the Atlantic Charter) were even worse, as their antics made it possible for Stalin’s Russia to gain power and bring an even greater scourge into the world.
      Take the time to learn how FDR’s ego and power hunger resulted in the so-called 7th of December ‘infamy.’ This will never be taught in American schools. And we still pay for it even now.

  • David

    Sadly, any honest people put at the helm of the Big Banks would probably succumb to the temptation to follow the existing trend. That’s where the money is. One day, we will all have to have a bank account and new PIN to be able to buy or sell goods. Those who don’t will be considered enemies of the Global State, and will be dealt with rather harshly.

  • AJ

    Let’s call a spade a spade! It’s a Global conspericy! A Rothchild agenda for a New World Order. See here:http://www.iamthewitness.com/DarylBradfordSmith_Rothschild.htm

  • http://PersonelLibertyDigest Rich Leffler

    We (the United States) can not afford to bail out a failing European Union! We are barely staying afloat ourselves, thanks to President Obama our Barry Sotoros, our whatever he wants to call hisself.We need to impeach him and deal with our own economic problems.To much spending and to many wars and way to many lies, we need to get back to a country that prays and acknowledges God!

    • Raggs

      Rich.. read my post below.

  • Sirian

    Since 1913 the Fed has been in uncontrolled control of our money and economy. Due to this, in conjunction with European banks, which are in ernest the quiet partners with the Fed, the entire lot have been manipulating economies on both sides of the pond for a very, very long time. What’s more disgusting is that they have created this out of thin air and hold so much more financial & political power than people realize or understand. Since there has been absolutely nothing backing our money via Nixon pulling us off the gold standard we have been used to the benefit of the Fed and several others. I openly admit that I was totally unaware of this fact until six years past. Insofar as politicians holding any full awareness of the scheme that has been played out for almost 100 years is debatable to the hilt. Isn’t it appalling that the Fed can lower its rates for fiat dollars to the European banks yet the banks here at home are paying a higher rate for the same? Does that not openly display what disregard they hold for the state of our economy? Better yet, they can do this without any Congressional debate, discussion or direction whatsoever. Really?? Why?? Until we can clean the Congressional houses ENTIRELY and start anew we will remain enslaved to the whims of a combination of banks and pure stupidity. Will the economies of Europe and America finally collapse? Without question!! Is there a way to prevent this from taking place? Obviously so!! But will the people of our country finally come to their senses on a level that it will take to accomplish it? That unfortunately remains an unknown. If we can’t return to the true standards and direction of our Constitution we might as well make sure that we have plenty of chickens, cows, sheep, horses and a few goats in the backyard – things aren’t looking bright at all.

    • MNIce

      “Until we can clean the Congressional houses ENTIRELY and start anew” I often see people calling for the eviction of everybody in Congress; I hope you aren’t doing the same. We’ve already cleaned up a sizable fraction of the house. It’s like cleaning a window: you don’t wipe off a tenth of it, then break it and install new glass; you avoid smearing the clean parts and keep scrubbing away at the rest of it. This is for all of you – please be more specific and don’t throw out the babies with the bathwater!

      By the way, it isn’t just Congress that needs cleaning. Go check your state, county and city government records to see how much “federal money” they’ve spent of this, that and the other thing. I was outraged to discover that a new traffic light in my neighborhood was purchased by the US Treasury through some development grant or other such scheme. That means i>my city stole money from you and every other US citizen for that light. On its behalf, I apologize.

      So, when you catch your local city manager or county engineer chirping for federal money to spend on a local project, go to the next council or commission meeting, pound the podium and scold them for stealing money from your grandchildren – because that’s what it is. Remind them that the Federal government has no money and no business giving it away. We have to cut the demand for federal handouts before we can convince Congress to stop offering it.

      • Sirian

        OK, let me be more specific, as you requested. We need to take a very close look at all members of Congress – House & Senate – and electorally clean both houses of any members that have been in office beyond two terms. In this fashion we could easily eliminate the primary members that have become so embedded in an ideological/political career mindset (commonly ego driven) along with members that have neither contributed to nor accomplished anything that warrants any significance for their district or the nation on a whole. Please keep in mind, all Representatives & Senators are fully entitled after no more than one term in office to their substantial Federal retirement and as commonly termed “cadillac” Federal medical benefits, both fully paid for by the people of this land. Just thought I’d toss that in.
        Being it as it may, it has gradually yet consistently become, over several decades, whether realized by the main populace or otherwise, extremely difficult to merely toss out the old and hope for the best with the new. Due to the subversive manner of redirection of thought from Constitutional to Socialistic/Marxist, it has grown into a monster of gigantic proportions that we no longer have any alternative – it must be defeated. One of the main sources of this redirection of thought originates in the hundreds of colleges and universities across the land. Even more so, it has worked its way into not only our high schools but also as far down as grade schools. Is this what you would openly accept and willingly promote as being good for our nation? I pray not.
        The same applies to local forms of governments – city, county or state. Whether you like it or not, so many people pay little attention to the true leanings of their local or elected officials. Merely the party, merely the party. When was the last time you have ever truly looked very closely at what political and ideological leanings a local judge may hold? As far as that goes, when was the last time you even knew who was running for a local judges seat? Very, very doubtful if you’ve ever looked. Common place, very common place.
        So, without question, the mire that we have fallen into is more overwhelming than most people realize. Most listen to a pinch of news, a tad of opinion, a blog or two or on occasion a smidgen of time committed to finding out exactly what or who or why or when something seemingly wrong has taken place such as a new law, a new regulation, a new directive that the local governments must adhere to that both could or would have a definite effect on their personal lives. Why? Obviously the majority of people are to busy with their own set of daily activities – work, kids, PTA, scouts, piano lessons, so on and so on and so on, that they remain blindly at a loss as to what is actually taking place. Once it is realized, fully, they simply won’t know what to do. You may doubt this but I have spoken to so many friends and family members and they too are unaware of what’s taking place.
        From this I hope I have been specific enough for you to understand my stance on the problem that not only faces me, personally, but you and everyone else of our nation.

      • GEORGE PAPAZIAN

        A-MEN A-MEN BROTHER

  • Raggs

    The EU is in the process of a “NEW” leadership with a “leader” to rule over all of the nations… So that being the case why don’t you think that this is why oblama is currently Bailing them out?…
    NWO = A one world government, a one world currency and a global leader… Now so then who is this “leader” going to be?… I have my suspicions….

  • Flashy

    Very good article. Factual, the premises are sound yet debatable, and offers a basis for which reality is not projected upon unsupported wacked ideological background.

    The EU is the second largest economy in the world, China is struggling and headed into it’s own economic problems, and the next two weeks of the banks dealing with the EU situation will determine if the US will come out of this with a jump started economic recovery or whether our internal political divisions will increasingly stagnate our situation.

    If the banks can come up with a plan, and Merkel of Germany brought around to agreeing, the economies will begin recovery as the Euro situation will stablize and industry is calmed down. And Obama is a shoe in for re-election.

    I don’t believe the banks and Europe (including Germany) will do the high dive off the bridge. 2012 will see a nice stable recovery heating up towards the end of 2012 into 2013. Then the talk will be controlling inflation as the monies which the walthy and elite are hoarding are slowly released back to investment (hopefully at a higher tax rate which will slow down any talk of hyper inflation).

    The upcoming event to sit back with the popcorn and watch is the inevitable clash of economies and interests of India and China. China is a hollow tube…looking strong from the outside, but nothing in the middle. I’ve written many times about China not being a worry. it’s a flsh in the pan and merely a stooge for the far right to use in it’s continuing fear led preachings. China cannot integrate it’s Communict/Capitalist economy into the existing world economy…and China does not and can not understand how the capitalist system works. And China is spending money it will not have as it modernizes its navies and then has to deal with an aging population.

    India on the other hand is just the opposite. Looks weak from the outside, but inside it is strong. Labor is plentiful, education is high, industry is modern, and they are capitalist in nature.

    Five years from now….India will be the headline grabber as our main competition. The EU will expand it’s own sphere into the Caspian regions and North Africa, and as the groundwork Obama is laying the the Pacific Eastern Rim pays off the benefits in running China into the economic dustbin, we’ll be heads on against India.

    • Sirian

      As a note only, saw it on the Business Channel this morning, China’s PMI is in now showing a contraction.

    • Buster the Anatolian

      Nice fiction, almost as interesting as the Larry Bond story mentioned above by Indendent Thinker.

      • DaveH

        Could you elaborate?

        • Buster the Anatolian

          Check IT’s 10.02 post.

  • JC

    The Euro is crashing…well what a surprise.
    Once again, Socialism Fails!

    • Alex Frazier

      lol … but JC, this time it’s different! We know more. We’re smarter. We have better technology. We’ve seen it happen before and know how to avoid the pitfalls. All we need are a few more government controls. If we can just stop people from doing what people do, everything will work out fine. It’s all the fault of greedy, job-creating capitalists.

      • JC

        Gee Alex, that’s a bit cynical isn’t it?
        Maybe if we all just chant together….”Yes we Can, Yes we can, Zeig Heil!!!” LOL ;)

    • Sirian

      Socialism has never worked but there are so many that won’t believe it. Backed with proof positive historical records it simply falls apart every time it’s tried. Dummies simply refuse to accept facts.

      • DaveH

        It’s right here Sirian, for anybody who wants to see:
        http://www.heritage.org/index/ranking

        The countries with the Biggest Governments have the weakest economies. How much more proof does anybody need?

        • Sirian

          Russia and China are really up there aren’t they. . . ;) Oh well, as I said, you can show them proof but it doesn’t make one bit of difference.

          • DaveH

            I like how the media talks about China having the Second Largest Economy in the World. Yeah, and that with 4 times as many people as reside in the United States. Translation: If China’s GDP was exactly the same as ours (it is in fact about 1/3 of ours) their citizens would be producing 1/4 of what our average citizens produce.

          • JC

            That’s right Dave, I recall a quote that came out of Stalin’s Russia:
            “They pretend to pay us and we pretend to work” There’s your communist / socialist work ethic.

    • Flashy

      Actually JC…the countries in the north, your so-called ‘socilaist’ countries such as Scandanavian, Germany, Belgium, GB, etc …weathered the economic crash brought on by the uncontrolled and deregulated actions of the US banks. What failed was the regulatory oversight and control of the banking system. When Bush and his cohorts allowed banks to privatize profit and “socialize” risk, pulled out entirely of regulatory oversight, and crawled into bed with Wall Street, that’s when the rot began and the structure collapsed in ’07-’08.

      Had Glass Steagall been retained (one of Clinton’s biggest mistakes was allowing the GOP to eliminate Glass Steagall), i doubt we’d be in the crisis we have today. Should the GOP get away from being the Party of “No” and actually work to improve this nation…we’d be much further along in the healing process.

      As it stands, the GOP will readily give tax breaks to those that don’t need them, yet stick the common worker with a tax increase, cut social programs while fighting to retain corporate welfare programs, and let themselves whore out to the defense structure sacrificing those programs designed to stimulate the economy.

      Don’t mistake me..there are Dem proposals as well which are unwise in my opinion…but at least they are proposing solutions…not just saying “no” to anythng but what benefits the wealthy and small corporate elite.

      • JC

        I’ve said before and I’ll say it again. Socialism is the failing doctrine of fools 100% of the time.
        Crony capitalism is criminal on every level.
        Which is why the Government needs to keep its nose completely out of the market.
        As for your Northern European Countries… they are riding a very fine line between free market capitalism and socialism. The socialist aspect depends on the free market aspect to survive. It’s still a system of control that drives the cost of living for say, the average Swede right through the roof. And it does not have to be that way.
        Ever checked the suicide rates for those countries? I think you’ll be surprised.

      • Wim Vonk

        well said Fleshy. I could not agree more.

      • Thinking About

        The repeal of Glass-Stegall has played out just as I thought. Phil Gramm stated many times if we would just deregulate them everything would be just fine, Gramm taught economy and he got it wrong. Though Clinton signed to repeal Glass-Stegall there was only 8 votes against it and would have resulted in veto override. Instead of putting useless bills on the floor affirm In God We Trust this time could have been spent on Restoring Glass-Stegall. Congress is more useless all the time.

      • MNIce

        From the Wikipedia article on the Glass-Steagall Act you so dearly love: “In reality, the repeal involved only one provision of the Act, the one preventing the same holding company from controlling both a commercial bank and an investment bank.” The Gramm-Leach-Bliley Act of 1999 was not a complete repeal. Another provision of Glass-Steagall, the one giving the Federal Reserve Bank power to set interest rates on personal savings accounts for all banks, was repealed in 1980.

        The primary effect the 1999 Act may have had in the crash of 2008 is that it allowed certain banks already making imprudent investments in mortgages to make even larger imprudent investments in mortgage-related securities, thus compounding their problems when the housing bubble popped. That housing bubble was inflated by the “Community Reinvestment Act” as enforced by the Clinton Administration, which essentially barred banks from denying many questionable mortgage applications because the practice was supposedly discriminatory. The artificially increased housing demand rapidly drove up prices, leading people to speculate with their life savings on over-priced homes they supposed they could sell later at an even higher price. The rapid increase in oil and gasoline prices ($4/gal.!) brought on by Iranian market manipulation and Hurricane Katrina was the pin that popped the balloon – many people who were barely able to make house payments fell behind when they had to spend their mortgage money to drive to work. Meanwhile, investors working for the banks had run up huge paper fortunes selling mortgages to each other and inventing new assets supposedly based on those mortgages (i. e., they were trading other people’s property like it was gold- or silver-backed paper). When the value of those mortgages came into question, the “assets” were shown to be mostly vapor.

        Economics is not always as simple as physics. Most problems in physics can be broken down into easily characterized segments. Economics has many interacting components, some of which are almost impossible to quantify (how much is a bad mood worth?). It gets even worse when you have government trying to stimulate, tax and control at the same time – like driving with foot pressure on both pedals at the same time while steering with your knees and doing something else with your hands.

        Glass-Steagall was ostensibly a response to outright corruption in some segments of the banking industry – apparently there was conflict of interest and fraud involving the combination of investment and lending. Yet, some of the world’s oldest and best-reputed banks successfully carried on investment and lending simultaneously for centuries, so this part of G-S was more of a case of a small group of malfeasants sparking a restriction on everybody than an essential practice of prudence.

        The “too big to fail” concept cannot be simply blamed on allowing bankers to get involved in multiple activities. The FDIC (another Glass-Steagall idea for government involvement in banking, although it ultimately went into another bill) was scared stiff at the notion of having to cover deposits at the monster banks. The Federal Reserve Bank corporation had huge sums of money tied up in those banks – many of them are part owners of the Fed. These two entities convinced Congress that it would be economically disastrous to let the large banks suffer the consequences of their mistakes, so we had to have TARP now, if not yesterday. A better solution would have been a bankruptcy-style reorganization – break up the mega-banks into separate unit corporations, and let the failed investment divisions go down. These banks should have arranged their activities like a good ship design – in “watertight” compartments, so if one activity ruptured it would not sink the entire enterprise. Certainly it appears they forgot an essential principle of prudent investing: diversify; do not let one type of investment dominate the portfolio.

  • Henry Ledbetter

    The Lord tells us to owe no man anything. He also said “THE LOVE OF MONEY IS THE ROOT OF ALL EVIL.” It is not the money but the love of it that has caused many to sell their soul for a mess of temporary pottage. I wish I could tell everyone that man will be able to work out his own problems without bringing so much death and destruction to the human race. I can assure you that the earth will not be totally destroyed for at least another 1000 years. As I see it, Our Lord has given us 6000 years to get it right but man without God’s direction has brought us to this low point in history where man now has the capacity.to reign terror and destruction on much of the world. Ultimately, “God’s Kingdom will come and His will, will be done on earth as it is in heaven” but the NWO must have their 7 years of destruction as man sets himself up as God. .Those that know The Lord Jesus have nothing to fear as we will rule and reign with Him in His Kingdom on this earth for 1000 years. WAKE UP WORLD.

    • MNIce

      “Of that day and hour (when heaven and shall pass away), no one knows, not even the angels of heaven, but My Father only. … Therefore you also be ready, for the Son of Man is coming at an hour you do not expect.” “Be ready” is for all generations until the end, so you cannot say it won’t happen for at least another thousand years.

      Your reminder to “Owe no one anything except to love one another” and warning against covetousness are certainly well-placed. I contend the first sin of humanity was Eve’s coveting Satan’s fraudulent offer. “So when the woman saw that the tree was good for food, that it was pleasant to the eyes, and a tree desirable to make one wise…” Almost all sin begins with an improper desire for something one does not have – coveting something of material value may lead to theft, coveting a different behavior from an acquaintance leads to anger and insults, etc..

      Covetousness is especially a major spiritual hazard in the banking and investment businesses. You must continually remind yourself that “making money” is not the object of life, but only a means to accomplish desirable purposes. There are some types of investments I refuse to make because I cannot see how they will serve anyone in a good way. Perhaps if the mortgage-backed securities traders had questioned the economic reality of their inventions from the beginning (how will this benefit anyone besides myself?), they might not have over-extended in the market as they did.

  • Alex Frazier

    I think it’s worth saying that there isn’t likely to be a one world currency any time soon. For all that people seem to think it’s going that way, I think the Eurozone is proof positive in and of itself that it would be next to impossible to create such a thing without it causing global chaos. It would truly take a one world government to make it happen, because there would have to be one issuing authority, one set of laws, and universal measures of acceptable austerity to make it work. As long as a nation can behave independently and spend as it sees fit without due consideration of the monetary union, nations will acquire debt or surplus at different rates. That’s precisely what we’re seeing in Europe right now. And it isn’t working. So it would take a one world government to make it work, and I can’t think of any sovereign nation that would surrender to such an authority, nor any citizenry that would submit to the undermining of their civil liberties. Not voluntarily, anyway. And in somes cases, certainly not peacefully.

    Imagine the muslims being forced to surrender Sharia Law. Imagine the United States being forced to give up the Bill of Rights. Imagine Switzerland being forced to give up its neutrality.

    It’s just not likely to happen.

    • Capitalist at Birth

      Think again. It is entirely possible, and the signs are here now. Get ready. Buy canned food, freeze dried food, nuts, distilled water, gasoline, oil, firearms, ammunition, camping equipment, gold, platinum, silver, copper, books, and anything else that you will need to survive the coming downfall of this grand experiment with Communism/Socialism as it explodes. I have been warning all the people that I have known since 1964 of what was coming. Many, thought I was crazy. All of my predictions have been proven to be true.

      • Aix Sponsa

        agree. but if you have to use all that camping equipment, the rest of the stuff will be moot…. as in… how the heck will you covertly bug-out with more than you can carry? Better have a good solid plan and an alternate. WHEN they come for your stuff, they will be fully prepared. Will you be, and will it make any difference?

  • DaveH

    Daniel says “The various problems with this decentralized setup led to the adoption of the U.S. Constitution, which made all member States part of a single republic with a strong central government”.
    Wrong. The original Federal Government was made purposely weak with only limited powers, mostly powers to deal with foreign issues not domestic issues which were left to the States. That was more or less the case for 80 years until the Great Usurper (Lincoln) trampled the Constitution and gave the Federal Government power never before sanctioned by the States:
    http://mises.org/misesreview_detail.aspx?control=346

    • Monte

      Exactly right, Dave. Follow that up with Wilson’s creation of the Federal Reserve. The general trend has been toward greater and greater consolodation, despite the fears of the Founders and what they created to prevent it. The end is to place all power and money in the hands of only a very few. It seems obvious that these few plan to rule through a leftist agenda. A complete collapse could be our only salvation.

  • Harry S.

    Obama and the Dems in congress are stuck on stupid. Their march toward socialism and one-world government won’t stop, even after the European debacle, unless we get rid of them in 2012.

    We’ve got to stop picking apart the Republican candidates – this one’s too conservative or the other one’s not conservative enough, or that one changed his mind about an issue, etc.

    The fact is – any Republican is 100% better than the Dems and our goal ahould be this: Get rid of Obama and the Dems in congress.

    • Zack

      Harry S., you are so right!!!

    • DaveH

      Not true, Harry. If we don’t carefully screen out those who would just continue to grow Government (most of them), then obviously Government will keep on growing. Obama was able to wreck havoc on our economy because the Big Government framework was in place to allow him to get away with his abuses of power. That framework was created by Republicans as well as by Democrats over the decades. Leaders (like most people) are simply inclined to feather their own nests first. It is up to us to recognize that and stop them.
      The ONLY way to get our Freedom back is to vote for those who not only give lip-service to Freedom, but also have a history to demonstrate that they actually practice what they preach, such as Ron Paul and Gary Johnson.
      And in addition, please give your support to the only Political Party who truly understand the Principles of Freedom:
      http://libertarianparty.org/issues

  • http://www.connecticutrepublic.org Not_the_peoples_debt

    It continues to amaze and shock me as to how many so-called “intelligent” people still don’t get the reality of the world’s economic situation. Ever since I can remember, I’ve heard the word “debt” being synonymous with “people’s”. But how many times do we have to be ripped off by the world banks before we realize that IT’s NOT THE PEOPLE’S DEBT STUPID! It’s the bankers’ DEBT!! Make them pay the world economy back for the scams they have run on countries while taking them over and destroying the people’s sound economies with their cheating and LIES! I DON’T OWE any DEBT so get over it. I have. Let them come and take it MOLON LABE!

    • Lastmanstanding

      They don’t need it…they have already made a HUMONGOUS PROFIT!!!…the longer they can make it last the better..right now they are using US taxpayers money in europe to…wait for it…BUY MORE GOLD AND SILVER!( for themselves)

      To those of you with your head up your ass.. pm’s have been down because of manipulation (if I have to tell you by who your done)
      Control the money… control everything. The ‘dollar swap” in europe is going to the banks. they are NOT lending it. they are using ‘it’ (something worth nothing) to bolster their bottom line.

      How? buying gold…it just that simple BECAUSE HISTORY PROVES THAT GOLD AND SILVER ARE THE KING OF CURRENCY…(PSST…AND THE BANKERS ALREADY KNOW THAT…SSH!)

      The price of pm’s is on the rise. Why? because humungous amounts of money are running to it(supply and demand, maybe false s&d, who knows)…mom and pop buying at the local coin dealer doesn’t create these kinds of conditions…BANKERS DO. WHY?…because they control the money, the printing presses and the govts…and they know that prices right now are a steal.

      Conversely, they run the value of pm’s up by creating a frenzy…then once the profit is big enough, they dump all their cheaply bought metal back onto the market (for a profit) so that another panick ensues and you sell your gold and silver so that they can buy it back up at bargain basement prices…and they seem to be doing it at will.

      A day is coming when you won’t be able to buy any at any price…and all of your dollars might as well be dog turds…how many times have your 401k,ira, etc. been robbed.

      Buy anything tangible that will save you and your families life. Using their dollars only keeps their game going…in the mean time, use their dollars to save your family…before complete faith is gone.

  • Ginnisickel

    Wrong! 1.95583 Deutsche Mark equalled 1 Euro.

  • ken

    although i am impressed by many of you that have some insight on what is really going on. if you can find the book anywhere (only 5 on the planet)read “greatest money hoax” by merrill jenkins.if you cant find that then i challenge anyone to read “the creature from jekyll island” and send me your opinion.

    • Sirian

      Ken,
      I read the “Creature” years ago and have been aware of the schemes that have been pulled on all of us. I agree, people should read “The Creature from Jekyll Island” to really get a grip on what’s been going on as well as it continues. There are two copies of “Greatest Money Hoax” on Amazon but they are listed in at $425.95 per copy – hummm, wonder why??

  • jerry sweet

    don’t buy and stock up on gold or silver.the feds will confiscate it just like good old commie fdr did during the depression.as a nation we have had it.so hoping it will change for the better is futile.you might as well stare at a lemon and hope it changes into stink weed.oh wait that does work,thats who is running the country.i hope you get my point.kick GOD almighty to the side and sit back and watch the fireworks.its only in the beginning stages.when its over, corpses will fill our streets.they want appsolute slavery and now because God has been set aside see the door wide open and they are acting like a starving wolfpack.they have been frothing at the mouth waiting for this time in history to strike.hang on.

    • Lastmanstanding

      JS…you are wrong…but elect obama again and there will be a full frontal assault on the 2nd amendment…if we lose that one then they can have it.

      “don’t go down without one helluva fight.”

      • Lastmanstanding

        about the gold and silver…all else is very accurate…lms.

  • FreedomFighter

    Well I guess we have another example of why SOCIALISM does not work:

    you eventually run out of other peoples money.

    Laus Deo
    Semper Fi

  • eddie47d

    I “love” all the great predictors in how the world will turn out and especially the USA.Many claims have been made and many dire theories have gone the way of trash bin. Everyone does it but some are more memorable because on that person’s insistence that they are absolutely right. You all remember TIME who hasn’t been around for several months but made several predictions in the fall of last year. He was one of those person’s who you could never challange because they are right and any rebuttal was wrong. TIME said “there would be Marshall Law by Dec 1st of 2011″ That there would be food shortages and “America would be collasped as a nation”. I told him he was wrong and of course he had choice words for me. I also said I would bring his prediction to light on Dec.1st of 2011. Well there is no Marshall Law and certainly no collaspe. The markets are still shaky and little upward growth but stable. I was hoping TIME was around so I could rub a little salt in his wounds and get back at him for being so frivolously nasty to me. He also predicted that gasoline would be $6.00 by last June and $10 by that same Dec 1 date. (today). He also made a prediction that we would be in WWIII by January 2012. (He has one month on that one) My point to him was that making dated predictions is wrong and not very predictable but he kept doing it. Have a great day TIME where ever you are.

    • FreedomFighter

      I believe the dates were derived from NWO organization expected time tables for completion of said goals. Guess your masters are behind schedual.

      Laus Deo
      Semper Fi

    • DaveH

      Making pinpoint predictions is indeed foolish.
      But in your case, Eddie, since you have no credibility, I would ask for proof of such predictions by Time before I would take your word for it.

    • eddie47d

      Time also blasted the NWO people so your reply didn’t make any sense. He hung on to conspiracy theories too and didn’t have a very good batting average there either.

      • DaveH

        Duh, Eddie, you have no credibility. Get it? So if you want us to pay attention to what you say, you’ll need to back it up with some proof.
        Seek Help, Eddie.

      • Rosco1776

        Why fret eddie? Just keep your head up your, er in the sand and you’ll be fine. Pay no attention to the thieves behind the curtain. Keep eating that delicious food Monsanto is “creating” for you and the drug laden water they pump to your house.

        This country needs an enema!!

  • PATRIOT 101

    For those that are scratching their head in dis-belief at this move of the FED, YOU SHOULDN’T BE ALL THAT SURPRISED!
    This is global re-ditribution of wealth on a scale that we will not know until the whole system crashes. The wealth re-distribution is from the Americans to the global banking cartel(s).
    One day Americans will wake up to worthless dollars, and still they won’t have any more of them to pay the bills, buy the food, pay the taxes. When it comes down to buy food or pay taxes, the hungry belly wins, the house/farm/business is lost to the bankers. That is the plan and the design of failing (fiat) curriencies.
    It is happening already that dollars are being “dumped” for anything else, even stocks. What fools…

    • Lastmanstanding

      but we have millions of guns and billion of rounds of ammo…that will make it very interesting…I didn’t plan on living for ever and I sure as hell won’t leave the planet without a good fight.

  • Jack

    Where did polititians get the idea of diplomatic immunity for themselves. What we need is to criminally charge them amd sentence them to hard time as ordinary citizens

    • DaveH

      How can they run our lives if we don’t allow them to lie, steal, and kill?

  • http://www.kkvinarius.com TARA TAN KITAOKA

    THE EUROPEANS ARE INDIVIDUALISTS, WHO EVER THOUGHT THEY COULD BECOME ONE BIG FAMILY WITH ONE CURRENCY AND ONE GOAL IS REALLY, TO PUT IT HONESTLY CRAZY.

  • http://alexfoundationunitedstatesofeurope.wordpress.com alexandro1
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