Tuesday, March 18, 2014

How Sanctions Against Russia Could Signal the Beginning of ‘World War III’

Russia is preparing to fight World War III against the United States, not with conventional weapons but with the American dollar, a financial analyst told TheBlaze.
Russian President Vladimir Putin gestures after signing a treaty to incorporate Crimea into Russia in the Kremlin in Moscow, Tuesday, March 18, 2014. Putin described the move as the restoration of historic injustice and a necessary response to what he called the Western encroachment on Russia’s vital interests. (AP Photo/Alexander Zemlianichenko)

Kevin Freeman, a global financial analyst with expertise in financial warfare and terrorism, warned that Russia, along with allies like China, could cripple the U.S. financial system.
It’s not a theory but a “very real reality” that should not be ignored, he said.
“The real risk is if we go after them with economic weapons, they come back after us and this creates World War III,” said Freeman, who has consulted for the Pentagon, CIA and FBI. ”This is a very tough game of chicken that we’re playing, and Putin is serious.”
The threat of economic warfare is nothing new. Freeman, who was hired by the Pentagon as a contractor to investigate the 2008 stock market crash, believes the economic crisis was the result of a purposeful attack on the U.S. financial market by a state actor or by financial terrorists. Last September, For The Record revealed how hostile nations such as China and Russia may have been the instigators of the 2008 crash and how a system with substantial growing debt is vulnerable to such attacks.
 “Russia is playing a very good game of Chess and there’s every reason to believe that Russia has thought this out in advance,” said Vitaly Chernetsky, a Ukraine expert at the University of Kansas.It’s up to the rest of the world to decide what will be needed to stop Putin’s momentum, he said.
U.S. analysts told TheBlaze that the sanctions announced Monday against seven of Russia’s wealthiest oligarchs and politicians may not be enough to stop Putin. Some Russian leaders have even joked that these are insignificant measures from a weak U.S. administration.

“There is no doubt that Russia has been thinking long and hard about how to disrupt U.S. power and the value of the dollar in the global market,” a U.S. defense official said. “We’re mindful but I don’t think we’re mindful enough. One thing is certain the greatest threat to our stability is not a conventional war but the destabilization of our economy by an enemy.”
For the past five years, Putin has promised that he would take America’s role as the leading global financial mammoth away, vowing to create alternatives to the International Monetary Fund and the World Bank. In 2011, he criticized the U.S. debt load, saying the “U.S. is living way beyond their means and shifting a part of their weight of their problems to the world economy.”
“To some extent [the U.S. is] living like parasites off the global economy and their monopoly of the dollar,” Putin said.
Last week, the Wall Street Journal reported a significant drop in foreign central banks’ Treasury bond holdings at the Federal Reserve. Analysts said they believed the drop was a result of Russia shifting Treasury bond holdings out of the Fed and into offshore accounts so it would be able to buy or sell its portfolio if the U.S. and its European allies imposed economic sanctions over Ukraine.

Earlier this month, Kremlin economic aide Sergei Glazyev made Russia’s intentions for economic warfare very clear, saying, “an attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of domination of the United States in the global financial system.”
Glazyvev said Russia could stop using the dollar, creating its own payment system with “our partners in the East and South.”
In 2011, the Washington Times obtained Freeman’s 2009 unclassified report, which outlined that “a three-phased attack was planned and is in the process against the United States economy.”
Despite a final report from the federal government’s Financial Crisis Inquiry Commission that blamed the crash on such economic factors as high-risk mortgage lending practices and poor federal regulation and supervision, Freeman noted that evidence suggesting that “outside forces” likely played a role, a factor the commission did not examine.
Former Treasury Secretary Hank Paulson described the 2008 scenario Freeman investigated for the Pentagon in quotes published Monday in the BBC.

“I’m not going to name the senior person, but I was meeting with someone … this person told me that the Chinese had received a message from the Russians which was, ‘Hey let’s join together and sell Fannie and Freddie securities on the market,’ Paulson told the BBC. “The Chinese weren’t going to do that but again, it just drove home to me how vulnerable I felt until we had put Fannie and Freddie into conservatorship [the rescue plan for them, that was eventually put in place].”
Freeman told TheBlaze that if the Chinese would have become involved it “would have worsened our financial crisis.”
“We might still be digging out, and we are still digging out to a certain degree, but it would have been far worse. But, what if they dumped all their holdings; not just the Fannie and Freddie debt, but all of their Treasury debt and they got the Chinese and others to do it? Oh, my goodness!”

Wednesday, March 5, 2014

Parallels between the 1929 stock crash and now

By Glen Tate (299days.com)
We all know the stock market will crash. The record high stock prices today are all artificial: the fake corporate earnings, the Fed pumping $1 trillion a year into the economy (mostly into the stock market, at least indirectly), the fundamental weakness of the economy, and the fact that a significant portion of the money in the stock market is just from people blindly throwing their money into 401(k)s instead of people investing in companies that will actually make an honest profit.  That is, the current high numbers in the stock market are not because the companies are worth it; it’s due to the above-mentioned phony bologna.
There are some big differences between 1929 and now, and they relate to how much more devastating a crash would be now. In 1929, we had a fundamentally strong economy.  It was largely unregulated. There was no Obamacare, no ridiculous taxes, no EPA, etc. In 1929 the Federal Reserve was not pumping any money into the stock market; now it’s a trillion dollars a year.  Another huge difference is that in 1929, very few people were actually in the stock market.  Investors in 1929 were almost exclusively the rich.  Now most of the country has a 401(k).  The destruction of a crash would hit most Americans now, not just a handful of rich people.  In 1929, America was far, far different socially. There was no welfare and people were about a 1,000 times more self-sufficient than now.  Most people in 1929 lived on farms and could grow their own food and there was no entitlement mentality.  Now there is violence when EBT cards don’t work for a few hours in a few areas.
I am not a stock trader trying to predict when the market will crash.  I focus on the consequences of a crash. What all this means, at least to me, is that the current stock market is much more fake, and the consequences for a crash are much more dire. In 1929, it would have been absurd to think there would be massive riots after a crash.  Now, it is widely accepted.  In fact, the federal government is actively planning for these riots.  Think about that: the government is not only acknowledging rioting after a crash, but is planning on how to deal with it.
I think the graph is important to think about.  If nothing else, it should kick people into gear when it comes to getting ready for the crash that is coming.

Blogger note:
Here's a little VERY valuable hint:   Get out of all of the markets, including your IRAs and 401Ks, get out of your CDs and other bank investments, then take all that cash and buy physical GOLD and SILVER and do it NOW!  Take the penalties. Keep in mind that when the stock or bond market crashes, it WILL take the whole banking system with it.

(Or you can just ignore me and lose everything you have accumulated in your lifetime in as little as one single day)

Still not convinced?  If your investments are not currently getting a 16% or better return, you are already losing money in your savings or investments every day.  According to the CPI formula of the 1980s, true inflation today is about 15.5%. The gov't has been changing the formula over and over again, pulling out things like food and fuel prices, or anything else volatile enough to increase the inflation number. The FED reports inflation as 2% so they won't have to increase social security benefits or pay higher yields on treasury notes. Don't believe it? Then why does the 20oz can of green beans at the grocery store now weigh 11oz and costs 150% more? Why are most items on the dollar menu no longer a dollar? WAKE UP AMERICA!

Thursday, February 6, 2014

Too Many Government Websites

On the White House website, they posted a blog article about how the Federal Government had too many websites. Over 2000 of them. Unfortunately, as they they always do, they missed the entire point of this revelation.

Their focus, upon learning of this fact, is to simply reduce the number of websites. 

What they should be doing is reducing the number of government organizations behind these websites that are intruding on American’s lives and unnecessarily robbing them of their hard earned cash through taxation.

You can read the article here:

If you want to get an idea of how bloated the government is, just google .gov

I know this analogy is a bit dated and I'm sure you or someone else could easily come up with a current version that more people would understand, but here goes:

We have a train with a steam engine that needs to deliver goods to market. The steam engine is commerce, businesses producing products for market. Since the steam engine runs on steam, it has to be heated, or manufactured. We make the steam by shoveling coal (I know. Mean ole nasty coal.) into a fire box to heat the water. I’ll tell you what. We’ll use wood instead. The people throwing the wood are the employees and business owners. Everything is going great. The fire box is hot, there is lots of steam to work the pistons that move the wheels, and the locomotive is cruising down the tracks.

Everything is going great for a while. Pretty soon, the government notices that the train is moving smoothly from point A to point B and thinks, “We can use this train for passengers too!” So the government tells the train that they have to carry passengers for free. It won’t affect them. They’ll just fill up the empty spaces among the goods.

Things are going well for a while. Then the passengers start getting thirsty. The government says to the employees, “You have plenty of water in your boiler storage tank. We need some to give to the passengers so they won’t die of thirst.”

Well, the train keeps chugging along at a steady pace, so the government allows more passengers to ride for free. This is a really long trip, so the old and new passengers get thirsty again, and the government takes more water from the storage tank.

Pretty soon, as the government keeps adding passengers, the train gets heavier and heavier. To keep the train moving, the employees and business owners work harder, throwing more and more wood on the fire, and they’re getting tired. Soon, the storage tank runs dry and the train breaks down. The workers quit and the passengers, who became so accustomed to the free water, die of thirst.

The government has taken over $17,265,000,000.00 worth of water out of the storage tank and it’s about to run dry. 52% of Americans are receiving some form of government assistance, not including Social Security and Medicare. Many of these people have been receiving these entitlements for more than five generations.

When the tank runs dry, they will starve and will loot and kill to find food and water.

The government can correct all of this by reducing its size and breadth and wean the people from the government teat. Will they ever do it? When pigs fly!

Monday, January 6, 2014

How to Beat the IRS and the Money Printers at the Same Time

So, how are conservatives beating the IRS, not to mention the Fed?  By buying private non-reportable physical gold & silver and sitting on it.   In other words, they're getting some wealth out of the crooked casino and away from the grimy paws of the IRS.  But in order to beat the IRS at their own game, they're buying “the right gold."
First, let’s look at investing in "the wrong gold" -- gold on paper through an ETF -- and how that plays right into the hands of the IRS and Fed.  You buy $100,000 in paper gold through your broker in the form of an ETF.  Gold doubles, you sell and realize a 100k profit and now you get to send a check for $28,000 to the IRS.  That’s right, you buy gold to protect yourself from inflation, inflation happens, your paper money buys less so your gold went up but, for some crazy reason, you have to give the IRS 28% of your “growth."
This is partly why the IRS is a joke.  The central planners make inflation to get growth, and then things rise because of that inflation, but then they want some of your growth back into their own pockets?   One would argue that if the central planners are going make inflation all day by printing money that YOU should be allowed to benefit from the asset appreciation that ultimately helps YOU to counter their inflation and the rising price of the goods and services YOU need to survive.  But instead they want to ding you twice – once through an unfair tax called inflation and then again by taxing you on the asset appreciation that inflation created.
So, when we talk about the "right gold," we're talking about physical gold, which has none of the counter-party risk of ETF gold and is more shielded from the IRS.  What many conservatives are doing is removing some wealth from the fractional system controlled by criminals and into an asset that not only lives outside the insolvent banking system and outside the paper fiat currency system, but is also invisible to the IRS.  That's right, the IRS does NOT require the reporting of many types of gold and silver coin purchases and sales.  So not only are conservatives protecting their money and wealth from systematic collapse when they buy gold and silver, they are shielding themselves from IRS scrutiny.
Written by Damon Geller

If after reading these three articles today, you still don't get it... You never will.