A Scared Trust: The American Experience

This is a sermon that is a must listen to about our freedoms as a God given unalienable Rights:

What Happens If The Debt Ceiling Is Not Raised?

Yesterday America just got permission to hit 100% Debt/GDP. The Senate approved an amendment increasing the US debt ceiling by $1.9 trillion. for a total of $14.3 Trillion. I was reading Zerohedge when someone asked what would happen if the ceiling wasn't raised? This is what came out of the comments section that I found very interesting.

(The following are from comments by readers on Zerohedge.com)

Short answer: Nothing happens (but you knew that)

Long answer: Current law requires a budget ceiling and a vote to raise it. Violating that law would open up violation of other similar laws. Not too far down the path of similar broken laws, the states start printing their own money. In US dollars. At which point hyperinflation ignites and the USofA ceases to exist as a functioning union. Much hilarity ensues.

The monetary system of the world (not just the USA) is based upon the illusion that there will always be greater fools available to pay the last greater fool.

The only reason people remain in the room that's about to be flooded with poisonous gas is the complete and utter belief (supported by group think and conventional wisdom along with healthy dollops of denial and self interest trumping rationality) that each person can get out before the gas can over come them.

As long as the majority continues to believe in the lie, the lie remains solid and fully formed. Thus the illusion is reality because the belief (and by extension the actions) of the people makes it real. One of the realizations one has when looking at this philosophically is that reality is simply what the majority says it is.

The banks are stable despite horrendously convoluted and distorted balance sheets and non-performing assets simply because the government says they are and people want them to be. Thus they are. If a rule or law threatens to upset the illusion, it's changed to conform to the group think.

What most people don't understand is that this "reality" is extremely fragile and will fail quickly. The Fed, Treasury and the President understand this extremely well. This is why this is considered a National Security issue and every lie, theft, payoff and Ponzi is encouraged and endorsed at the highest levels. Our reality is supported by a lie and thus by extension is a lie. Since there is no more real support under our economic reality, every effort must be extended to support the lie.

Do or Die! Seen from that point of view, everything that's going on is perfectly understandable.

The lie holds until the first person breaks the pact and heads for the exit. It takes no more than one. Then the stampede erupts because while nobody wants to be first, everyone wants to be second.

I think California is that "person" at the sovereign level. As goes Cali, so goes the nation, so goes the world and in rapid fashion. We will see, come summer, if Cali stays within the illusion or bails.

Someone pointed out this video as metaphor for our current situation:

Cunning lions await the herd as it lumbers forward, trustingly, behind their dear leader. If divided, the weak in the herd are slowly picked off, unless...

Anyways, if someone has a better explanation to what would really happen, send it to me!

Which Pill Will You Choose?

I have just recently started to look down the rabbit hole and it has been uncomfortable at times, thinking, could this really be the country that I live in. Do not get me wrong, America is the best country in the world and it truly is the last hope for the rest of the world.

We have to get back to knowing history and start moving in the opposite direction of what we have being doing the last 50+ years, Darryl Robert Schoon writes:

In the early stages of capitalist systems, interest and principal can be serviced out of the debtor’s cash flow. In the final stage of “mature capitalist systems”, they cannot.

Capitalism’s final stage is what Minsky calls “ponzi-financing”, when debt payments can only be made by additional borrowing. This is what the US, the UK and Japan are doing today, having to borrow against tomorrow in order to pay yesterday’s bills.

For 50 years, not one Dollar of new debt created by the US government to fund the activities it does not wish to tax for has been repaid. The debt has simply been “re-financed” with new debt being sold to retire the existing debt.
(www.the-privateer.com)

At some point, the end finally arrives. Ponzi-financing cannot service debt forever. Investing in unhedged paper assets is the bet that it can.

I only have a few agenda's on this blog, which is growing and preserving my wealth and helping people see that what I am just starting to see. What is the use of creating wealth if a government can destroy it, tax it, steal it from its people. It is becoming more and more clear to me that government is not our answer. It is not a right(Rep.) or left(Dem.) fight, it is about believing in the America people and that we do not need a group of people telling us what decisions are good for us. Both parties have grown government to bigger and bigger proportions. It comes down to one word "FREEDOM"!!! Through out history, governments have oppressed it's people. There was a reason our founding father wanted us to question our government:

"Any people that would give up liberty for a little temporary safety deserves neither liberty nor safety." - Benjamin Franklin

The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government." - Patrick Henry

"Resistance to tyrants is obedience to God." Thomas Jefferson

"Government is not reason; it is not eloquence. It is force. And force, like fire, is a dangerous servant and a fearful master." -George Washington

"A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicity." - Thomas Jefferson

So I ask you...Which pill do you pick?

If you picked the Red Pill here is where to begin:

Gold and Economic Freedom by Alan Greenspan

America's Impending Master Class Dictatorship by Stewart Dougherty

I certainly do know know a lot, and there is so much corruption going on in Washington these days? I am constantly trying to form my own opinions about our situation and look what is going on currently and how we got where we are today. I think Ron Paul is the best fit person right now for President, but I would always watch and keep a close eye on him. One thing I do not understand is how we think politicians are some how better or smarter than we are and trust them to do what is right by us? All I can ask is for you to join me in taking the red pill...are you ready?

USA watchdog Greg Hunter

Audio from Greg Hunter of USAwatchdog would take the time and listen to these men. They address the deficit's, spending and entitlements.



And David Walker, former Comptroller General of the U.S. On America's economic comeback. He is the guy in I.O.U.S.A, you can read more about that here.



Audio from Brad & Brit Show

Ron Paul: "Prepare for Revolutionary Changes in the Not-too distant Future."

“Could it all be a bad dream, or a nightmare? Is it my imagination, or have we lost our minds? It's surreal; it's just not believable. A grand absurdity; a great deception, a delusion of momentous proportions; based on preposterous notions; and on ideas whose time should never have come; simplicity grossly distorted and complicated; insanity passed off as logic; grandiose schemes built on falsehoods with the morality of Ponzi and Madoff; evil described as virtue; ignorance pawned off as wisdom; destruction and impoverishment in the name of humanitarianism; violence, the tool of change; preventive wars used as the road to peace; tolerance delivered by government guns; reactionary views in the guise of progress; an empire replacing the Republic; slavery sold as liberty; excellence and virtue traded for mediocracy; socialism to save capitalism; a government out of control, unrestrained by the Constitution, the rule of law, or morality; bickering over petty politics as we collapse into chaos; the philosophy that destroys us is not even defined.

We have broken from reality--a psychotic Nation. Ignorance with a pretense of knowledge replacing wisdom. Money does not grow on trees, nor does prosperity come from a government printing press or escalating deficits.

We're now in the midst of unlimited spending of the people's money, exorbitant taxation, deficits of trillions of dollars--spent on a failed welfare/warfare state; an epidemic of cronyism; unlimited supplies of paper money equated with wealth.

A central bank that deliberately destroys the value of the currency in secrecy, without restraint, without nary a whimper. Yet, cheered on by the pseudo-capitalists of Wall Street, the military industrial complex, and Detroit.

We police our world empire with troops on 700 bases and in 130 countries around the world. A dangerous war now spreads throughout the Middle East and Central Asia. Thousands of innocent people being killed, as we become known as the torturers of the 21st century.

We assume that by keeping the already-known torture pictures from the public's eye, we will be remembered only as a generous and good people. If our enemies want to attack us only because we are free and rich, proof of torture would be irrelevant.

The sad part of all this is that we have forgotten what made America great, good, and prosperous. We need to quickly refresh our memories and once again reinvigorate our love, understanding, and confidence in liberty. The status quo cannot be maintained, considering the current conditions. Violence and lost liberty will result without some revolutionary thinking.

We must escape from the madness of crowds now gathering. The good news is the reversal is achievable through peaceful and intellectual means and, fortunately, the number of those who care are growing exponentially.

Of course, it could all be a bad dream, a nightmare, and that I'm seriously mistaken, overreacting, and that my worries are unfounded. I hope so. But just in case, we ought to prepare ourselves for revolutionary changes in the not-too-distant future.”

Thoughts from Chumbawamba

Here is some thoughts from (Chumbawamba) poster over at Zerohedge.com:

In a nutshell (because my education took years, so you can't expect me to give you the important background to my argument in one posting, or even several) this system is f*cked. Our debt-to-GDP ration is well beyond what other empires experienced just before their collapse. Our central bank is monetizing thin air to pay off the financial blackholes created by unregulated/out-of-control over-the-counter derivatives that are valued at well over $600 trillion globally, and our government is planning to borrow every last unit of currency under the moon in order to keep from falling into a fiscal abyss. How the hell does anyone expect this is going to turn out anything but very, very badly?

There are now literally tens of trillions of dollars of liabilities stretching from here on decades into the future. Our debt-based monetary system means these liabilities will only increase in cost and interest as time goes on. From where are the revenues going to come? The pace of productivity and wealth creation in this nation will have to inflate accordingly. How is this going to be accomplished? Do you have any answers? Does anyone?

We took a quantum leap from billions to trillions--a thousand-fold increase--in our economic discourse. It follows then that our GDP will have track this increase to keep up with the new normal. Again, from where are the revenues going to come? Are they going to be conjured up again like magic, so that we go from trillions to quadrillions as the new new normal? Or are you going to be expected to magically increase your productive output 1000 times to make up the difference, along with every other American (including children 1 and older, since we’ll also be needing more manpower for the job, way more than we have even if you include the illegals)?

WHO IS GOING TO PAY FOR ALL OF THIS?

The answer never comes. Oh yeah, this is simple to solve, they say. They'll just "add liquidity" to the market, then "drain it", as if this was just a matter of doing the dishes, and all the complaining and fussing and fearing and loathing and hemming and hawing was all just a matter of no one wanting to pony up to the sink to actually do the deed. But no, that’s just a cheap distraction. So the question remains:

WHO IS GOING TO PAY FOR ALL OF THIS?

I’ll tell you who: Us. As in you. And I. Or at least those of us that are silly enough to file and pay taxes (I don't know about you two, but I do not submit to extortion, otherwise known by the letters I-R-S). And how many people like me do you think there are now? Probably just a relative few. We're the "out there" nutballs. We're the ones that make wild-eye predictions of economic collapse and social chaos to follow. We're the ones who get pooh-poohed. Until the government keeps pulling shit like this. Then we grow in numbers. The disgusted; the disenfranchised; the disaffected. We find each other, learn from each other, and spread the wisdom. We watch as the government creeps upon our God-given freedoms like a depraved predator, one after the other, picking them off until one day we’ll be left naked and defenseless. But we prepare, and in the meantime we keep introducing new people to the mouth of the rabbit hole. And if you’re courageous, and intelligent, you’ll go in. And the deeper down the rabbit hole you go, the more you realize that real money—gold and silver—is the answer.

As more people discover the answer, the dollar takes one step closer to irrelevancy. Once it reaches that point, you have hyperinflation. Once the dollar enters hyperinflation the game is over; or rather, it just begins. But then that's a matter of perspective :)

Will the dollar cross that line of confidence? After all of my study, I sincerely believe it will and am convinced beyond a shadow of doubt about that conviction. I’ve been waiting for someone to come along and explain how I’m wrong about this. Despite my rhetoric, my eyes and mind are open. Convince me. Anyone?

In short: follow Austrian school of economics. I'm not saying they have ALL the answers, but so far it seems they have pretty damn nearly all of them.

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Ask yourself these questions:

1) What system is collapsing? The one in the US? I.E. the dollar?

1a) If the dollar collapses, what does that mean domestically?

1b) What does it mean internationally?

2) Is the FDIC solvent?

2a) If not, how safe are your bank accounts?

3) Are the firms in which you have your various retirement accounts solvent?

3a) Really? Are you sure? Did you check their balance sheet?

3b) Including all their hidden liabilities?

3c) If not, how safe are you accounts with them?

4) Does America strike you as a financially strong country?

4a) If not, do you think America will remain the world's sole superpower indefinitely under these conditions?

4b) If not, what does that mean for the dollar, the world's reserve currency, and the unit of account upon which all other world currencies (except gold) are based (again, domestically and internationally)?

Mull that over.

But here's a spoiler. The answer to all the above is:

Don't wait until inflation eats away your savings. Every day you wait is like an ounce of silver slipping out of your hands, lost forever.

History is your teacher. All others are substitutes. Including me.

I am Chumbawamba.

This might seem extreme, but he does ask some tough questions...cannot say I disagree and yes I tend to ignore what he says but doesn't mean that I don't feel this way down deep within my beliefs.

The Federals Papers and a Country Divided

The following is an excerpts from The Federalist Papers, © Copyright, 1961, by Alexander Hamilton, James Madison, and John Jay.

But whatever may be our situation, whether firmly united under one national government, or split into a number of confederacies, certain it is, that foreign nations will know and view it exactly as it is; and they will act toward us accordingly. If they see that our national government is efficient and well administered, our trade prudently regulated, our militia properly organized and disciplined, our resources and finances discreetly managed, our credit re-established, our people free, contented, and united, they will be much more disposed to cultivate our friendship than provoke our resentment. If, on the other hand, they find us either destitute of an effectual government (each State doing right or wrong, as to its rulers may seem convenient), or split into three or four independent and probably discordant republics or confederacies, one inclining to Britain, another to France, and a third to Spain, and perhaps played off against each other by the three, what a poor, pitiful figure will America make in their eyes! How liable would she become not only to their contempt but to their outrage, and how soon would dear-bought experience proclaim that when a people or family so divide, it never fails to be against themselves.

PUBLIUS.

This is very interesting...let's go down the check list:

U.S. National Government:

efficient: No

well administered: No

our trade prudently regulated: Yes but having problems

our militia properly organized and disciplined: Yes but spread thin

our resources managed: No

finances discreetly managed: No

credit re-established: No

our people free: Yes (but losing more and more everyday)

contented: Definitely Not

united: Definitely Not

"what a poor, pitiful figure will America make in their eyes!"