03.23.13- My dog is worried about the economy because Alpo is up to $1.50 a can. That's almost $10.50 in dog money.
As the editor of the Silver Bear Cafe, I spend most of my time researching current events. I explore the markets, the economic war that is being waged on the middle class, precious metals, the Federal Reserve, energy, and how to go about surviving financially. In this weekly column I will attempt to condense the week's events and examine how the news might affect your pocketbook. JSB
Our Government finances itself through the collection of taxes, (which basically go to pay the interest on the national debt), and the sale of treasury instruments, (i.e., bonds, bills, notes), which are effectively IOUs from "We the People". In its first term, the G. W. Bush administration increased the Federal debt by $2.2 trillion. Congress raised the Treasury debt ceiling three times, by $450 billion in 2002, by $984 billion in 2003, and by another $800 billion on November 19, 2004, to $8 trillion 184 billion. Between 2006 and 2011, Obama increased the debt by another $5 trillion. The ready willingness, of the members of the House and Senate, to finance such deficits is a clear indication of the political and ideological makeup of most members of Congress.
More disturbing is the fact that the voting public continues to re-elect these bozos in the glaring face of fiscal insanity. The wars are obviously a ruse to convert the national debt into vast wealth for the elitists. Please understand that there is no way that fiscal responsibility, a by-product of a gold backed currency, could ever provide for the reckless levels of debt that the American people, and their descendents, are currently being shackled to.
All the people in the world that hold Federal Reserve Notes are being fleeced. That's usually an occurrence reserved for sheep. How apropos. But, so long as crazy foreigners continued to loan us more of their "funny money" to fight these wars, the game could go on. It has now reached the point where foreigners have finally wised up to the insane nature of our economic policies and have ceased buying our IOUs. The Federal Reserve has stepped up and is currently buying one trillion dollars worth of government debt per year. Where does all that money come from? Well, out of thin air, of course. Ben "Breakneck" Bernanke and the Federal Reserve have created the mother of all bubbles, the bond bubble, and it's about to pop. There can only be one outcome from a situation where money is invented out of nothing to pay debts. When the bough breaks...
On the Economic War Front
One of the more astounding aspects of the slow motion economic train wreck that continues to unfold, right in front of our eyes, is the vast number of our "fellow citizens" that fail to see it, at all.
It doesn't seem to matter to most Americans that their lifestyles have been maliciously eroded, at an ever accelerating rate, for the past twelve years. We have now reached the point of crisis and overt collapse, and they still don't get it. It seems like most have already submitted and been assimilated by the collective.
Assimilate into what? The answer to that question provides the source of the problem. Instead of calling it the "the Dark Side", let's just call it "the BORG". The forced assimilation of all cultures, into one culture, rings of Star Trek.
Who is doing the forcing? Certainly not you, or me. No, it is the work of the Collectivists, the One Worlders, the New World Order. Their quest for world domination, which is, by the way, all Yin and no Yang, has unbalanced the world, and all its inhabitants as well. The forced cultural diversification of our country has rendered us tribal-less. Forced cultural diversification is the scourge of individualism as it strips us of our tribal vitality. It is designed to cause the gradual elimination of all Collectivist opposition. We, as a group, have lost concern for tribal nurturing. We, as individuals, are losing our support groups. Without our support groups, we are alone and helpless. We have been unknowingly led away from any rational balance. Yang should be our focus. Survival is the most Yang thing we can attempt. "Resistance is futile", is the message from "the BORG".
One of the most important aspects of your financial survival concerns your understanding of the nature of money. If you believe that precious metals do not constitute "money", you have been misled. If you have been misled, who misled you? Why? And "What's wrong with this picture"?
What is money? The whole point of money is suppose to be the provision of a convenient and liquid medium that can be exchanged for less liquid value. It is a go between. One strives to accumulate money so it can be exchanged for something else.
In our illustrious history, we humans have tried everything from salt to sardines as a medium of exchange, but nothing has seemed to work as well as gold and silver. A person bringing a relatively illiquid item to market could swap it for gold or silver, secure in the knowledge that the metal would retain its value for as long as he chose to hold it and would be accepted as payment for anything he wanted when he chose to spend it.
The condition that your gold and silver will retain its value for as long as you chose to hold it is the most valuable characteristic of the "barbarous relics", and provides the fodder for me to champion the cause of precious metals ownership, and for my ensuing attack on the debasement of the American dollar.
Man has an innate desire to obtain and own gold and silver. That we seek to possess precious metals seems as naturally entrenched in our collective psychic as any other instinct. The possession of wealth, in the form of gold and silver, has always represented power and control. There is nothing wrong or unnatural to desire power and control. The power to control one's destiny through the accumulation of wealth is not only natural, it is healthy. This natural desire is the basis of our capitalistic system. The gold standard, as prescribed by our Constitution, is "the Law" that insures that the "power and control" that is provided by wealth, cannot be abused. Those who would seek to abuse the power of wealth would consequently have to break "the Law." "The Law" has been broken.
In 1792 the U. S. Coinage Act was passed by Congress. It invoked the death penalty for anyone debasing money and provided for a U.S. Mint where silver dollars were coined along with gold coins beginning in 1794. The text of Coinage Act of 1792 states: The Dollar or Unit shall be of the value of a Spanish milled dollar as the same is now current, that is, running in the market, to wit, three hundred and seventy-one and one-quarter grains of silver.
To repeat, Adollar is a silver coin containing three hundred and seventy-one and one-quarter grains of silver and it cannot be changed by constitutional amendment, definitionally, any more than the term year can.
Fiat money, (money not backed by anything), was something so abhorrent to our Founding Fathers that they didn't even discuss it as an option. The Constitutional gold standard provided that the Country's citizens could not be robbed by means of inflation.
People, the world over, are beginning to wake up to the wholesale theft that has been, and continues to go on. Cyprus was definitely a wake-up call. How much longer will the Darkside be able to continue to suppress the price of silver, and through that suppression, be able to go on robbing us?
There is more horrible news out of Fukushima. This comes as no surprise. I have been predicting this outcome since the onset of the tsunami. Listening to the presstitutes will always end up badly as their entire mission entails obscuring the truth. Just as the Deepwater Horizon spill has yet to be contained, in the Gulf of Mexico, the bulk of the horrific damage by seeping radiation at Fukushima has yet to be realized. Consequently, "Tokyo is all aglow".
The Silver Bear Cafe is the only alternative news and information web site. that I am aware of, that has, as one of its six forums, one completely dedicated to slamming the Federal Reserve on a daily basis. I have managed to find one article a day, six times a week, for the last ten years, that exposes this criminal banking cartel for what it is. The Federal Reserve was behind the sovereign meltdowns in Europe, working at the behest of JP Morgan and Goldman Sachs as well as the current robbery in Cyprus. The Federal Reserve is, in my humble opinion, public enemy number one.
As the editor of the Silver Bear Cafe, I try to focus on the ramifications of world events. I try to understand how what's going on now will affect your pocketbook next week, next month, next year. It is my sole intent to help you consider the possibilities which will, in turn, help you prepare for your financial future.
I have received quite a few emails in response to my recent article, "Light a Candle". In that article I suggested that, as a result of a pandemic national apathy, "the Game" was overwhelmingly in the control of "the Dark Side". I posed a question near the end;
That line was meant to challenge the sensibilities of the readers and perhaps invoke some attention to the situation and bring some of the problems to light. Problems are like vampires. They don't like the light.
A good portion of the emails I received conveyed a frustration borne from my appraisal of the current state of the world, and my seeming lack of a solution.
I try and stay focused on financial and economic issues. It is always frustrating when I attempt to delve into political issues because:
There may be a solution to the potentially devastating onslaught of the evil forces of "the Dark Side", but it will involve an uncharacteristic response from "We the People", the vast majority of which will vote for a Demopublican. Everyone who emailed me seemed to understand the folly of voting for a Demopublican. So what else is new?
I, of course, believe that a solution exists, but it will require the here-to-fore missing superhuman effort of all you "enlightened" folks out there who agree with my prognosis, but have yet to do anything about it. It will require a unified application of energies, the likes of which have not been mustered since the revolution.
To quote a paragraph from a recent Bill Bonner editorial;
Editors note: For more of Mr. Bonner's insights please visit the Daily Reckoning.com.
You must first realize that there are, present in our lives, enemies. You must then know who those enemies are and act accordingly.
Eliminate as much debt as possible, especially variable rate debt, such as credit cards and lines of credit. Interest rates will be rising, so the elimination of debt offers a real return of escaping rising rates by creditors.
Get some control over some fresh water.
If you are depending on Social Security, stop.
Follow the course opposite to custom and you will almost always do well...
Its not what you don't know that will screw you up, it's what you know that is wrong. The spin you hear from the mainstream media is intended to mislead you. Open your eyes and face the future. If you leave your head in the sand and ignore it, you are only leaving your butt exposed for the world to kick. This all may sound like gloom and doom, but when you get a handle on what is going to happen, you will have a future filled with opportunity. Fortune favors the Informed.
More next week...
May the Great Spirit be with you always,
All statements and expressions are the sole opinions of the editor and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The staff of Silver Bear Cafe are not registered investment advisors and do not purport to offer personalized investment related advice. The publisher, editor, staff, or anyone associated with, or associated to the Silver Bear Cafe may own securities mentioned in this newsletter and may buy or sell securities without notice.