Wednesday, September 16, 2009


Look, let’s just examine the situation in a purely logical sort of way:

It’s easy to denigrate Congress and Presidents and their Administrations because they do a lot of "seemingly" foolish things. For the American People, pummeling the President and castigating Congress are almost national pastimes. It’s easy to call them fools or idiots, but let’s be honest for a moment: most people in the Federal Government are not really idiots. Secretly, we all know that. They may hold to an agenda that we hate, we may be disgusted by their actions for a variety of political or moral reasons, but deep down we know that only a small percentage of the men and women in Washington are really mentally retarded in a clinical kind of way.

Therefore - (and here’s where the logic comes in ) – if something seems totally obvious to most of us, we can be certain that it is just as obvious to most of our so-called “leaders” in Washington, because one doesn’t get to Washington by being stupid. A person might get to Washington via corruption, but not via stupidity.

Following Barack Obama’s 2010 fiscal budget proposal will result in a national debt of $17.4 trillion dollars by the time his term ends in 2013. Now it doesn’t take a rocket scientist, or even an economist, to see that debt is ultimately going to run this country into ruins. I know that and you know that… do you REALLY think that USAP and our Congressfolk DON’T know that? It’s claimed that Franklin D. Roosevelt once said, “In politics, nothing happens by accident. If it happens, you can bet it was planned that way.” And that’s probably true because the people in Washington, although they may be corrupt and immoral, are NOT STUPID.

Here’s the point: it is no ACCIDENT that we are dog-paddling in debt and will soon drown in it. It is no accident and it’s no mistake. THAT, People, is the GOAL! Drowning us in debt is the PLAN. If your agenda is to recreate the world under the authority of a single Global Government, you cannot possibly do that while one nation remains too prosperous. Why would a wealthy nation agree to a new form of government while the one it has is making it the envy of the world? In order to institute a single Global Government, you must create A LEVEL GLOBAL PLAYING FIELD. And the only way to do that is “Level The Leader.” America is the leader, but not for long.

But this leveling cannot take place too suddenly, and it cannot appear to be intentional. Our “leaders” must pretend that there is a big battle raging between right and wrong, between conservatives and liberals, so that we can be brought to our knees in an incremental fashion.

We are slaves to The Federal Reserve, and our Owners walk a fine line between their goal and our perception. They know that if they move too quickly and We The People catch on en masse, there will be violent revolution, and once they lose control of The People on a large scale, they will never have the masses in their grasp again. Do you know your history? Do you know how difficult and dangerous it was at times for the German army during World War II to gain complete control of undermanned and outgunned little villages in its march toward territorial domination? Well, heck, the American army experienced a similar thing during our non-declared War in Iraq. Now imagine if the Federal Government lost control of this entire nation. With an estimated half of all American homes containing at least one firearm, how would the Federal Government ever reestablish complete control? It wouldn’t. And that’s why propaganda and gradualism are the Fed’s most effective weapons. They’re reading a “story” to the frog while it slowly boils in the pot. We are the frog.

Now, is this purely logical, or not? Do you still REALLY believe that Washington D.C. has made a whole long series of “innocent” mistakes over the course of many decades, and we have arrived at this economic crisis because of extreme stupidity in the White House and in the Capitol Building? If you do, I damn sure want you on the jury that decides my fate!

But now other nations are beginning to force our Owners to show their hand. We are at a crisis point; this is delicate work, like trying to defuse an explosive device, and our Owners dare not even sneeze. Man, this is better than ‘The Dirty Dozen’!

Below is a very important article pertaining to Gold and the American Economic Collapse, which I just found at I suggest you read it like your financial life depends upon it... because it just might.

~ Stephen T. McCarthy

World To America: We Want Our Gold Back

Robert Morley, Columnist
September 15, 2009 From

It is not just China that is attacking the Anglo-Saxon financial system.

The world is preparing to abandon the U.S. dollar and the UK pound. Pronouncements from Hong Kong, the United Arab Emirates, Switzerland and Germany have made clear that the Anglo-Saxon financial system’s doom is only a matter of time.

A huge announcement out of Hong Kong rattled the financial world on September 3. Although big media relegated the story to the back pages, it should have been front and center! What’s the news? China is demanding its gold back.

“Hong Kong is pulling all its physical gold holdings from depositories in London,”
reported MarketWatch (emphasis mine throughout).

The announcement, coming in the midst of the global economic crisis, is sending a clear signal: Britain is in far worse economic shape than generally realized, and China thinks it needs to get its gold out while it can—before something happens to it. Gold closed at a
new record high of $1,006 per ounce on Friday.

Governments have a notorious history of confiscating precious metal reserves during times of crisis—even in America. In 1933, in order to stabilize the monetary system, President Franklin D. Roosevelt issued an executive order
confiscating all privately owned gold in the United States. Later, in 1968, President Johnson issued a proclamation that all Federal Reserve Silver Certificates were merely fiat legal tender and could not be redeemed in silver. Then in 1971, the U.S. government closed the gold window completely and declared that foreign nations would no longer be allowed to exchange U.S. dollars for the gold that was supposedly backing them.

But China’s decision to demand its gold back is more than just a vote of no-confidence against the pound. It is a direct challenge to the whole global Anglo-Saxon-dominated financial system.

China wants its own gold bullion money center. Toward this end, it also announced that it has created bullion storage facilities in Hong Kong to compete with London and New York. Chinese officials said they will soon launch a marketing drive to convince Asian central banks to transfer their gold reserves from overseas money centers to a storage complex closer to home in Hong Kong.

In today’s world of fiat paper currencies, many have forgotten the golden rule: He who has the gold rules. Beijing hasn’t forgotten—it has just been playing along.

The Chinese administration is not against fiat currencies in principle. It too relishes the ability to print fiat money. It loves the power it gives it to essentially confiscate the wealth of the country’s tax base. However, China also knows that the United States and Britain can print money too.

America and Britain owe China and other countries trillions of dollars. As long as Washington and London did not overtly abuse the ability to create money, Beijing was happy to keep lending. But with the global financial situation still teetering on the precipice, both Britain and the U.S. have publicly admitted to “quantitative easing” (the technical term for creating new money out of thin air) to intervene in the bond market and pay back borrowed money. The dollar is at risk of a major devaluation—and China knows it.

Once countries start down the funny-money road, confidence deteriorates rapidly. How valuable is that $100 bill when the government is creating hundreds of billions to give to big banks? It is often a short trip to the paper currency recycle bin. At that point, you have a free-for-all. Once it gets ugly, nations will go to extremes to avert economic collapse.

Thus, China wants its gold. As much as possible, as soon as possible, before the world’s monetary system falls apart.

On September 6, Ambrose Evans-Pritchard reported in the Telegraph his conversations with Cheng Siwei, former vice chairman of the Chinese Communist Party Standing Committee. According to Evans-Pritchard, Cheng, who now acts as sort of an unofficial economic ambassador to the world, says that
China is alarmed by U.S. money printing.

Cheng stated on the record that China has lost confidence in the U.S. dollar and is moving toward a partial gold standard through reserve accumulation. “The U.S. spends tomorrow’s money today,” he said. “We Chinese spend today’s money tomorrow. That’s why we have this financial crisis.”

“If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in U.S. bonds, and this is very difficult to change, so we will diversify,” he said. “Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets.”

But China doesn’t seem too overly concerned about the price—it just wants the gold. The Chinese government has even
unleashed an advertising campaign through its state-run media to encourage people to purchase gold and silver as a way to invest and protect their wealth. The theme seems to be: Get as much gold into the country as possible before the crash comes.

Other nations are
grabbing their gold and heading for the exits too. A few months ago, the United Arab Emirates announced that it had begun constructing a major gold storage facility that would be marketed to members of the Gulf Cooperation Council. The uae said it had requested its gold currently stored by the London Bullion Market Association to be sent home.

Bob Chapman’s International Forecaster reports that Germany stores significant portions of its gold with the U.S. government. He says that Germany has asked that its gold stored in the U.S. be transferred back home. Economic analyst Jim Willie also mentions unconfirmed reports that Germany has requested that its gold be sent back.

Even Switzerland has
threatened to remove its gold from custodial accounts in the U.S. Reuters reported in February that the populist Swiss National Party (Switzerland’s largest political party) said that if Washington decided to go ahead and force Swiss Banking Giant ubs to divulge names of its banking clients that Switzerland should, among other things, pull all of its national gold reserves from America. America has since pressed ahead with its case. In August, ubs said it would release approximately 10,000 client names.

Everywhere you look, big events are occurring in the global economy. Last week, the United Nations said that the dollar’s unique role as a global currency was at an end. Although China, Brazil, Russia and India have all called for a new economic system not based on the dollar, this is the
first time that a multinational institution has suggested scrapping the greenback. Also last week, the U.S. administration was forced to ask Congress to raise the debt ceiling again—this time to over $12 trillion—a level that will be breached by October. On Friday, three more banks failed in the U.S., bringing the total to 92 this year. The Federal Deposit Insurance Corp. recently increased the number of problem banks on its watch list to 400—up from around 300 during the first quarter of the year. In Britain, last week, the World Economic Forum listed Britain’s economy as less stable than Peru’s.

The world is awaking to the possibility that America and Britain face real collapse. The part that stings the worst is that one can’t blame them for getting their gold while they can. They are right: The facts indicate America’s and Britain’s economies are going down. It is just a question of time.

Robert Morley’s column appears every Tuesday.

To read more articles by this author, click here.

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