The Hijacking of Americahttp://www.321gold.com/editorials/mccoach/mccoach021909.html
Greg McCoachFeb 19, 2009
Watching the perverted circus of corrupt politicians and administrators in Washington and New York the last six months is enough to make anyone with a brain want to shout a primal scream of disgust and anger. I use the word "brain" because it is becoming increasingly apparent that many Americans unfortunately are no longer using the gray matter that exists between their ears with regards to what is going on in our country. The rapidly accelerating chain of events moving us faster and faster towards economic oblivion is beyond shocking. It is happening much quicker than I anticipated.
The numbers these stooges in Washington and New York are throwing around for the bailouts and economic stimulus package are simply too big for the average person to comprehend. This is one of the reasons why they can get away with it, because they know the average citizen can't understand it. The old adage "if you can't convince them, then confuse them" comes to mind and the politicians certainly have become very adept at doing that lately. (But why we let them get away with this is another story in and of itself for another time).
At some point large numbers simply become figures on the page, well beyond human scale and intuitive understanding. And yet as discussion about the economy and the gargantuan numbers that come along with it continue to dominate the news, it may be more important than ever to try to understand what these numbers actually represent. The politician's figure as long as they can keep you in the dark, you won't demand any accountability from them. And accountability to a politician is what a heart attack means to your average 55 year old.
So before I go any further let's do a quick study of what a trillion dollars represents in order to understand why the U.S. Government is completely out of control at this point and soon on its way to utter collapse.
With the economic stimulus package estimated to cost around one trillion dollars, and Obama stating on January 7th that "he is admitting to trillion dollar budget deficits for years to come" here are some analogies that express the absurdity of the current situation in the United States.
First - the math:
100 (one hundred)
1,000 (one thousand)
10,000 (ten thousand)
100,000 (hundred thousand)
1,000,000 (one million)
10,000,000 (ten million)
100,000,000 (hundred million)
1,000,000,000 (one billion)
10,000,000,000 (ten billion)
100,000,000,000 (hundred billion)
1,000,000,000,000 (one trillion)
Now the analogies:
First analogy: If someone spent one million dollars per day each and every day since Jesus was born, it would take another 731 years (beyond today) before one trillion dollars was spent.
$1,000,000,000,000 / $1,000,000 per day = one million days
one million days / 365 = 2740 years
2740 - 2009 = 731 (years remaining)
Second analogy looks at a million, a billion, and a trillion in terms of seconds. One million seconds comes out to be about 11½ days. A billion seconds is 32 years. And a trillion seconds is 32,000 years!
The third analogy puts dollar bills end to end. If you laid one dollar bills end to end, one trillion dollars would stretch nearly from the earth to the sun. It would take a military jet flying at the speed of sound, reeling out a roll of dollar bills behind it, 14 years before it reeled out one trillion dollar bills!
But the last analogy is the one that absolutely blows my mind. If you took freshly minted brand new $1,000 dollar bills and starting stacking them one on top of another, it would take a stack over 68 miles high to reach one trillion dollars!
It's become almost surreal, like we are in a bad dream or something!
It is clear that Obama's Keynesian (another word for head up your back end) economic advisors are telling him that they don't know what to do other than continue the Bush policy of create more money out of thin air in a desperate attempt to stimulate the economy. This is akin to a fireman trying to put out a massive blaze by pumping gasoline through the hose instead of water.
Richard Maybury of the "Early Warning Report" had a great quote this month related to this when he said the following:
"Expecting your life to be improved by politicians is to believe in one of the most unlikely events imaginable."
I couldn't agree more with his observation. But we seem to have a large portion of America that is in complete denial of what is actually happening to our country. Watching educated, but uninformed Americans put so much trust and hope in government is flabbergasting to me.
Listening to those who take sides and want to blame the "other party" shows just how out- of-touch the average citizen in America has become. It is not about Republicans and Democrats anymore. We are way beyond that now. Forget about trying to assign blame to one party of the other because this mess got started back in the 70's and both parties are guilty, guilty, and guilty.
Looking at the dismal record of fiat currencies throughout history, no country that has disconnected their currency from a gold or silver standard has ever made it past the 40 year mark before inflationary panic and disaster unfolded. The United States is now in the 37th year of its fiat currency experiment since Nixon took us off the gold standard in 1972.
Obama has already stated he plans on trillion dollar budget deficits for years to come. This is completely unsustainable! My take is we would be lucky to make it another eighteen months before the whole enchilada blows sky high.
The latest so called "economic stimulus package" is nothing more and nothing less than creating money out of thin air. It absolutely guarantees hyperinflation within eighteen months time frame, possibly much less which provides us colossal opportunities to profit in non-dollar assets such as the precious metals.
And what we were originally told about the stimulus package, is suddenly no longer the case. As always, what we the people were led to believe in the beginning with the bailouts and now the economic stimulus is totally changed. The economic stimulus is mostly pork barrel spending and socialism on a grand scale with little in the way of infrastructure job creation which was how this was originally billed. It is very conceivable that the first year budget deficit of Obama's administration will exceed $3 trillion dollars. This is absolutely unsustainable by any definition you want to use.
As Jim Sinclair recently said, "There is no longer any means of reversal of the final terminal phase of the downward spiral now solidly set in motion."
It is coming whether you or I want it to or not. All you can do is take the positive approach and prepare for it, and profit from the debacle. The time to do so however is rapidly running out. The million dollar question remains, how much time do we really have before the system implodes?
For me I wouldn't be surprised to see the next shoe drop at any moment as the "Obama Hope Rally" quickly fades into the next wave of financial panic. This next wave down is going to be a whopper because it will involve the popping of the commercial real estate bubble and its associated derivatives. Again, the PTB (Powers That Be) don't want you to understand what these derivatives are and how they are affecting the financial system. The government media complex keeps providing disinformation to prevent you from understanding the true nature of this derivative liability that exists worldwide. What the exact amount of this liability represents is not exactly known, but what we do know is that what we have seen thus far is only the tip of the iceberg.
In these kinds of volatile environments, things can go from looking good to sheer panic at the drop of a hat. The Fed is working feverishly at the moment to avoid deflationary panic, but their only solution is to throw money, lots of money at the problem. This in the end will only prove disastrous as hyperinflationary forces take over. The reason for this is because of the sheer number of new dollars that are being created and thrown into the system. The exact timing of when this hyperinflation will show up taking "Cash is King" to "Cash is Trash" will depend mostly on what is called the velocity of money as I have explained before.
If the newly created money starts to change hands quickly as people begin to buy whatever they can of value before there money buys even less, then you can expect the hyper-inflation to show up sooner than eighteen months, possibly much sooner. If however the velocity is slower and the newly created money does not change hands very quickly then we may get the full eighteen months before things really begin to unwind. Personally, my take is we will be lucky to make it through the end of the year without a major financial catastrophe.
So get prepared as quickly as possible for disruptions to the distribution network typical in periods of hyper-inflation.
1. Get a food storage and emergency supplies in place. (Including at least a three month supply of prescription drugs).
2. Own physical gold, silver and the quality precious metals mining shares. Start thinking and taking short-term profits with the shares with every opportunity you get. Make sure you own the American Eagle silver coins if you live in U.S., or Canadian silver Maples if you live in Canada.
3. Keep some $1's, $5's, $10's and $20's safely in your home (at least a couple thousand dollars worth), I'm not recommending stuffing your mattresses, just some cash in case of "Bank Holidays" that seem sure to happen.
4. Consider buying or having a safe haven place at least two hours away from a major city.
5. Take a global perspective with regards to protecting your hard earned dollars. In other words, don't have so much U.S. Dollar exposure. Transfer accounts to countries or
6. Currencies better than the U.S. dollar. Currencies of choice that come to mind are the Canadian Dollar, the Singapore Dollar, and the Hong Kong Dollar.
7. Continue to educate yourself and others about the realities of what is happening. Don't believe the hype and outright lies that come from the Fed or U.S. Government.
8. Read the Constitution for yourself and help others read it so the public can know how we get back on track to liberty, prosperity, and abundance once more.
We are witnessing the undoing of what our founding fathers worked so hard to provide for us. They created a republic but were worried we would be able to keep it. See if the quotes below from our founding fathers don't ring true to you and really hit the nail on the head.
Yes, we did produce a near perfect republic, but will they be able to keep it? Or will they in their enjoyment of plenty, lose memory of their freedom. Material abundance without character is the surest way to destruction. -Thomas Jefferson
Benjamin Franklin's admonition as he left the final meeting of the Constitutional convention to his wife who asked what the new government would be. Franklin replied:
"A republic madam, if you can keep it."
The people of the United States are the rightful masters of both the Congress and the Courts, not to overthrow the Constitution but to overthrow those who pervert the Constitution. -Abraham Lincoln
The bottom line is we are losing the country the founding fathers so diligently worked and strived for. The enemy is power seeking politicians on both sides of the isle and the unbelievably greedy fractional stock holders of the Federal Reserve who have now hijacked America from the people. They are the very perverts that Abraham Lincoln warned us of.
Are you willing to fight to save the country from those who desire to pervert the Constitution? This will be the ultimate decision that all of us will be faced with if the country is to be saved. Some say it is already too late. I believe there still is a chance.
A very well written piece by Richard Maybury best describes how we the people can get ourselves out of the mess that we now find ourselves. I think Richard Maybury is one of the brightest minds that we have available to us today on topics of liberty, economics and
freedom. I would highly recommend you subscribe to his newsletter which you can access at www.richardmaybury.com
The following paragraphs in italics are excerpts from Richard's February 2009 newsletter:
Why I am Optimistic , Long-Term
The timing of the economic crisis is a historic stroke of good luck. The disaster began under republican leadership, and is virtually certain to grow worse under democratic leadership.
So, most Americans will soon see that both major parties are failing them catastrophically.
Everyone therefore, is awakening to the fact that they must seek and alternative. And there, in all the libraries and on the internet, is the Constitution, waiting to be discovered.
At bottom, the present crisis is... more than anything else, a demonstration of the fact that he who expects peace, liberty, and abundance to endure, in a country with statist schools, is expecting what never was and never will be.
I remember the Vietnam War, what enraged young people the most was the betrayal. They had been taught all their lives to trust government, and now it was sending them to die for a pack of lies. They began to doubt everything, and to hate "the establishment," which meant anyone with any kind of power. Result: riots
Searching for an alternative to the conservative trust-the-government faith they had been taught, they veered sharply left. This is another stroke of luck for us today. The centerpiece of socialism was the empire of the Union of Soviet Socialist Republics. On the day the Berlin Wall came down in 1989, the credibility of socialism and everything that resembles it was smashed. Every person could now see that state control of the economy means slavery, and poverty for all but the ruling class.
So today the credibility of both the left and right of the mainstream political spectrum has been demolished, and over the next few years, as conditions worsen, millions will be looking for something that is not main-stream. A window of opportunity will open. Those who believe in what was known in 1776 as the "system of liberty" - that is, the system enshrined in the Constitution---will finally have audiences so desperate they will not be only receptive but eager to give the system a try.
America is one of the few countries to have been founded on a set of ideas, as opposed to simple loyalty to a ruler or piece of real estate.
These ideas are clearly stated in the Declaration of Independence and Constitution, especially the 9th and 10th amendments to the Bill of Rights. These two amendments say the
federal government is allowed to do to us only what the Constitution says it can, which isn't much. For instance, Washington is not authorized to establish the Federal Reserve, inflate the money supply, manipulate interest rates, sanction subprime mortgages, give military aid to foreign tyrants, or spend $190 million on a bridge to nowhere.
The Constitution is not perfect, but it is close enough. And, it enjoys a wonderful prestige.
This isn't to say many have read it or know what it is. But they have heard good things about it, and some can read well enough to understand its high school level language. (The reason government does not want you to discover the Constitution is, the founders did not write it in legal-ease; any ordinary person can understand it and see where it is being violated. Is this why so few Americans today have been taught to read well?)
To most the Constitution will always be just a symbol, like the Liberty Bell and the Statue of Liberty. But as long as they are desperate enough to give it a try, this will start the country back in the direction of peace, liberty, and abundance.
In short, and this is another key point in the realm of economics, there's no other ideology left to try. Fascism and its variations went down in flames in the 1940's. Socialism and its variations followed in the 1980's and 90's. Now thanks to Bush and Obama, conservatism is on the ash heap and liberalism isn't far behind.
This isn't to say power holders won't try a lot of crazy schemes. But what they do will be all tactics and no strategy. There will be no model, no ideology, just euphemisms for print money!
From all the panicky fire fighting incidents, we will experience forms of chaos never seen before.
In a few years people will realize Obama's "plan" was the same as Bush's: pour all the conflicting suggestions from my advisors into a blender and hit the "muddle" button.
People will long for some sort of coherent, logical system in which they can have faith.
They won't go to the system of liberty because they like it or because they understand it; they'll go because it's the only thing left. In a few years, John Q. Citizen will regard both major parties as his enemy, and he will be so desperate he will be ready to try anything, even freedom.
I leave this with you in the hopes that we all find our way back to what made America great in the first place. In the meantime it looks like we are about to find out just how deep the consequences for decades of abuse of our system of credit and Constitutional values will be.
The opportunities for profit in the coming economic meltdown will be amazing. While many will be losing most of their wealth and suffering in many untold ways, the few who were prepared will be able to come through the storm financially, physically and emotionally intact.
The time to prepare is coming to a close. Please be advised.
Feb 15, 2009 Greg McCoachemail: email@example.com
website: The Mining Speculator