Milford's Real "Boogey Man" Is The Dollar

Some time ago when I warned that the Internet bubble was about to pop it did. When I announced the real estate bubble was about the pop it did. Now in the last few years America's banks are "Zombies" and a new bubble has inflated to stellar heights. "The Bail Out Bubble" is set to pop soon and when it does the Dollar will go down as a result.


Some have argued that I am a self proclaimed fortune teller of sorts, but I assure you the only skill I have is my ability to read. As an avid reader, and bibliophile I love knowledge and in my love of knowledge I have developed a penchant for economics, and economic news. As a case in point, today anyone could have read yahoo news and received a treasure trove of Economic forecasts.

Fortunately in my endeavors I also have access and opportunity to discuss what I read with many proclaimed experts. These experts include Peter Schiff, Warren Mosler, and Ralph Nader. I also have a close family friend who is an employee of the World Bank in a high level position. These individuals combined with the trends forecasts put forth by Bruce Bueno De Mesquite (who uses Game Theory) and those of Gerald Celente who does not disclose his algorithms give me a fairly accurate vision of the road ahead.

The following is a short window into what the situation looks like from my vantage point. As it stands the dollar is about to break a new all time low, and Gold a new all time high. This spells trouble for Global trade and the Dollar as the Worlds reserve currency. These issues are sternly dealt with at the G20 meetings, a place where the leaders of the worlds largest 20 economies address economic challenges. The G20 is currently growing concerned over the dollar losing its value, and Chinas response to the dollar decline by engaging in deliberate currency devaluation of their Yuan. They do this in order to keep prices cheap at Walmart, however the world is growing tired of the money game real fast.

The next few years will usher in some serious new challenges to America's austerity. The fixes put in motion by our experts are not working well enough. The U.S. economy appears to be stagnant and far too many Americans have become entirely dependent of the government for money to survive. The result of this very ugly paradox is creating large structural deficits that put pressure on the Nations "Piggy Bank" AKA the Federal Reserve.

Congress has run out of money, it has spent the entire Trillion + Dollars it collects in taxes and it has also spent all the money from everything it has sold (T-Bills). With this in mind, imagine the country still does not have enough money to pay its bills. Unfortunately, since money has been decoupled from Gold (thanks to Former President Nixon) it is easy to create and is little more than the law followed by ink and paper.

The power vested in the Federal Reserve as granted to it by the Federal Reserve Act of 1913 allows our government to engage in an enigmatic process called "quantitative easing" or a big confusing word that amounts to nothing more than printing more money out of "thin air." Congress can do this when its broke to pay for its over spending. America must never not pay all its bills and it would be unimaginable for the mighty U.S. to say "we cannot afford it."

The sad part is that we also frustrate the rest of the world when we engage in Quantitative easing because everything in the world (due to the Breton Woods Agreement) is purchased or denominated in dollars. Oil, minerals, gas, commodities etc.. is all purchased nation to nation in dollars. For example, the Banana I/you had in my/your cereal this morning was most likely paid for with a U.S. dollar that a South American grower was forced to accept.

This is the main reason why the G20 gets concerned when Americans expand their money supply (M3) because the world, who holds more dollars than the U.S., is forced to deal with the currency devaluation. Americans get a inflationary "Free Ride" on the backs of our holders of dollars. To add "insult to injury" foreign holders of Dollars are forced to collect a reprehensibly low amount of interest. A rate that is, more often than not, less than the rate of inflation we created.

Take all of this, add the LIBOR average for interest rates, Keynesian Capitalism and the manipulation of those interest rates and what we have is another solution, or in other words more affordable mortgage rates. This solution comes with a nasty side effect of angry nations who in their acrimony is rapidly demanding an ugly remedy to the induced inflation now rapidly spiraling out of control.

This will eventually end when the G20 ditches the Dollar and its associated "Breton Woods Agreement." This would also force the full brunt of our Quantitative easing to be entirely on our backs. When this happens the World will quietly divest from the dollar in favor of a new world reserve currency. Conveniently such a system has already been put in place and its called the Global SDR and is currently used for internal payments. Should a Dollar crash happen it could be expected to grow in scope relevance and size. This would be to insulate Europe, Asia, and everyone else only and not the U.S.A.

For Main Street USA and Milford Connecticut this will put cities and states at odds with the Federal Government who, in the chaos, will declare Supremacy under the Supremacy Clause of the U.S. Constitution. We will also be left helpless to defend ourselves against the economic malaise induced by our National leaders and their magnificent failures.

Still today as we speak, we have teams of economic repairmen, focus groups, and think tanks trying to solve a problem that they are powerless to solve. States and municipalities are not equipped to break treaties like NAFTA, GAFTA, EPP, and The BRETON WOODS AGREEMENT. Our states and municipalities have no seat at the G20 nor do we have any way beyond voting and complaining to save ourselves from the wrath imposed on us by virtue of the Globalist world we were sold into.

As the bailout bubble pops, so goes the easy money from the Federal Government to the states and from the states to the cities. We then get what France just got this week Austerity measures, or in other words the Middle Class gets broken as the rich abdicate and the poor remain more poor. The Middle Class will suffer the brunt of the nations Austerity measures. They will do so by virtue of higher retirement ages, less Social Security, pension funds being redirected to save banks (as happened in Argentina) and local infrastructure being sold off and privatized to keep what is left of our sustenance systems operational.

The scenario is highly probable, hopefully not in tandem with a Middle Eastern war, or with some other terrible imposition such as an outbreak of a newly discovered exotic pandemic like Swine Flu. All of this is mentioned for the sole purpose of recognizing that our Federal Government has gone awry, and as such continues to disrespect us during our time of need.

The last bastion of what keeps our economy moving is "Laissez Fare" economics or let the ingenuity of the people and our markets fix the economy. Even with that approach we are being knocked down as our trusted advisors tell us that "Laissez Fare" is not the answer because companies need to "pay up." Health care is now not a choice but a punitive "Obamanomics" imposition that will be enforced with 16,500 new IRS agents ready to confiscate individual and corporate assets to pay for insurance premiums.

Americas industry is also being told that they are harming the planet and despite all the rhetoric over climate change and the conflicting science surrounding these issues, America is slowly being forced to comply. America is alone in this compliance because as our industry is dealing with another massive Federal Imposition the biggest polluters who manufacture almost all our products are being ignored. China and India is exempt from "Cap and Trade" and our nations engineers, investors, and monetary elite know it.

Peter Wynn a casino operator correctly said that "few investors are comfortable investing in America today because their is so much uncertainty from Washington D.C." he further adds that "China and India gives their anchor Industries a long term vision and accompany that vision with political stability in order that they may make a prudent investment in jobs in their nations."

These are just a few of the emerging problems that are sending Common Americans from lost jobs to record numbers of start up businesses. They also agitate the personal insecurity that is fostering civil unrest. At no time is a record spike in Gun sales, like we saw last year, or record foreclosures a vote of economic confidence by the American public. And it is also not a vote of economic confidence by the public when they distrust their Congress by a record 89%. The nation is changing, and with those changes we are all going to feel a great deal of pain. That pain will persist, unless we as a state decide to universally reject our Federal Government and all its injurious policies and laws that hurt our citizens.

The only thing that could save Connecticut is our mutual willingness to succeed in an environment where all others have failed. We collectively need to bring about new ideas to our mutual challenges that topple all previous failed attempts. Most importantly we need to stop enabling and placating our Federal Government and its associated corrupt practices. The only way we can win this fight is with an informed educated public and leaders who have a greater desire to courageously lead rather than serve and rule.

Milford's Teachers's Union Failing To Protect Milford Teacher Jobs

Negotiating is simple, first both sides must be willing to negotiate. Are they? It appears not according to BOE Chairman Mark Stapleton who said "the problem could be worse next year" and warnings are emerging from DC that the Fed's will hold back 1.5 Million in school funding threatening more teachers jobs.

Second, in a fair negotiation both sides give up a little. The Taxpayers of Milford agree to pay a little more tax, the teachers union agrees to to take a little less of a raise.

Without compromise there is no progress on education. The taxpayers will not stand to take the entire burden of the flawed binding arbitration deal that was set in Hartford.

The teachers Union has a job of protecting its teachers, not hoarding their benefits, raises, and demanding excessive taxes.

Not to be rude but many of these teachers do not even live in Milford and could care less about our taxes because they do not have to pay them.

That is why, a school is closed and many teachers, albeit are not currently fired will be fired soon you can count on it.

The union is going to have to come up with something better than the "Education Outrage Machine" and for those of you who think we are not in a Depression should look up the fraudulent CERC figures for Milford.

Cerc Claims that our Employed Workforce is 30,834 people out of 54,040 in 2009. When you eliminate everyone over the age of 65 (assuming they are retired) and everyone under the school age of 18 you have 37,925 people eligible for work. (18-65 Range only). Add 7,091 people who are not counted to the ranks of the unemployed. My point is that the fraudulent figure put out the Federal Government is Dead Wrong! There are more than 8,000 unemployed people in Milford.

This does not count kids who are 16 and 17 looking for Summer Jobs, or the working elderly who could not retire.

Also if we look at the housing market for Milford at Trulia.com, you will notice that Milford has 489 homes for sale of which 112 homes are in some form of Foreclosure. That represents 22% of all homes for sale in town as being foreclosures, and yes Prices are plummeting, sales are plummeting and there is no more Home buyer credits.

For anyone to doubt we are in a Depression is a Fool, believing the fraud from the Washington DC Fraud and lie factory is what is wrong with many of you who believe in the non-sense that you are fed.

For a long time, when we were all kids we all knew the Tooth Fairy was real, Santa was real, and yes the Easter Bunny Too.

Today all of them are in Washington DC selling out our country to a Global Banking cabal who hates our way of life and is intent on destroying our Austerity through any scam they can think of. Derivatives, new taxes, credit default swaps, naked short selling, wars, etc.. etc..

The sooner you all wake up the sooner we can responsibly go about taking care of our business here in Milford.

Unemployment in Milford is not 1,571 people its more like 8,000.

Educations Future In Milford And Connecticut

We have all heard of the bailout for the auto industry, $4,500 credits, government stock buyouts and sweetheart loans that the average Joe could only dream to get. The big banks then labeled themselves as "too big to fail" and AIG, Fannie Mae, Freddie Mac and all its crones were bailed out. Today the taxpayers own 80% of AIG alone and another massive amount of GM stock who could have ever imagined thing would get so out of hand.

The bailouts in the last few years were numerous, $8,500.00 first time home buyer credits, extended unemployment benefits for months beyond what is normally allowed, 40 Million Americans on food stamps and stimulus package after stimulus package packed with shovel ready pork.

Sadly, when we think of "No child left behind" and local education we are continually reminded of unfunded mandates and what a burden to the taxpayers those mandates have become. Instead of the Federal Government valuing our children we are told yet again this year that the city of Milford will be denied 1.5M of Federal funds to our schools placing an operational deficit in 2011 that could be as high as 5 Million.

Every effort is being made to streamline and contain education costs, teachers are retiring early, raises skipped, schools are being closed and local Milford residents are living more conservatively than ever. After attending several Board of education meetings it became clear that all our energy at city hall is being focused on our little patch of land we call Milford, and few remember that our patch of land is contained within the boundaries of the worst economic global downturn since the Great Depression.

My high school New York Military Academy in Cornwall NY was established in 1882 and it survived the Great Depression, WWI, WWII, Vietnam, Korea and the energy crisis of the 1970's but this year its operational budget losses are so high, and its Alumni so impoverished that the school is expected to fail within the next year or so.

And these problems are symptomatic across the entire state of Connecticut where teachers from all communities are living with no job security, and are afraid of what they will do next if they join the growing ranks of the unemployed.

The reason we are in the situation that we are in is because of years of the Federal Reserve's "ponzi" style monetary policy whereby money can be printed at the whims of congress and the banks to fund the next popular war/invasion against an invisible tactic fear mongered as "TERRORISM."

While we all surrender our rights for our security and sit an awe over some person who lit his underwear on fire with a failed bomb, or the times Square Frizzler, our President, Obama makes jokes about the terror on the U.S. Arizona/Mexico border that has landed 17,000 people dead and murdered. Americans get kidnapped by Mexican drug dealers, they threaten and kill our nations police officers, and poison our people with the very drugs the U.S. troops protect for Karzai in Afghanistan and no one in the BS media covers it as terrorism.

The sooner we realize that Washington D.C. is no longer America's friend but rather it's enemy our mission will become clear. Our mission is to establish state sovereignty under the 9, 10Th Amendment dissolve all illegal treaties, break ties with all World Governments and start indicting U.S. Senators and Congressmen who willfully violated the Logan act and defied the U.S. Constitution. In other words Connecticut needs to start doing the Job the Federal Government is ignoring.

For those of you who still do not get it, you should be aware by now that Washington D.C. has been waging a war on the Middle Class while making the rich richer and you poorer. As we rebel against the Tyranny of Washington D.C. they have launched a police state against us whereby "lists" are being used to circumvent the Constitution and punish anyone who dare preach their inaliable rights in America.

All these problems are rapidly coming home to roost, right here in our state and our town. The message from Washington DC is clear we have trillions for war, now billions to bail out Greece but little to nothing to help educate America's kids. This message, by virtue of its priorities should beckon you to rise up and join Tea Parties everywhere.

Moving forward the structural deficits now being exaggerated by the federal government and the inevitable climbs in interest rates due to inflation in the next 24 months is expected to destabilize every grand list in America let alone Milford. Hartford is going to have a challenging time managing the take over of cities like Bridgeport, Hartford and Waterbury who have had structural deficits that bankrupted them long ago. Those problems are going to spread beyond the normal areas that they normally occupy.

Taxes alone will not solve our problems in education because equilibrium will be reached relative to tax collection and the maximum attainable mill rate. There comes a point under the immutable laws of the Bell shaped Laffer curve that dictate a collection threshold. Once equilibrium is reached less taxes are collected, and sadly that threshold is also under assault as the Federal and state government also add to the tax burden of ordinary CT citizens.

The best course of action we can take to alleviate the pressure of these problems is to rebuild our school district under the principles of the New Urbanization Initiative, and Smart Growth while interest rates are low. Once those rates rise our window of opportunity will be closed and Hartford will have to beg the Federal Government to fund our schools. The alternative is over taxation and the fostering of one of the largest underground economies America has ever seen.

Milford's Gregg Smith Wants You To Speak Up Tonight

Greg Smith, Chairman of the Board of Aldermen, said "Given the current state of the economy and the problems in Hartford and Washington, you, the citizens of Milford, along with your Aldermen, have got some very difficult decisions to make concerning the services we receive and taxes we all pay for them.

Many Milford families are struggling, having lost a job or at risk of losing a job, and making due with reduced income or no pay raise. Seniors received no cost of living adjustment this year. All of us must work together to find the best solutions for our community. Our Mayor and Board of Finance have labored to find the right balance. Now is your chance to be heard before your Aldermen take up the task of completing the budget.

We will hold a public hearing on the city budget this Thursday, April 8th at 7pm.

Interest groups will be here to voice their opinions, as is their right. I urge all taxpayers to come to your City Hall and be heard on your budget. We will stay as long as it takes to hear you. If you have an opinion on the city budget, your Aldermen hope to see you Thursday night at 7:00pm."

Reprint from www.milfordrepublicans.com

Milford's Citizens Hit With Huge Tax Increase More Foreclosures Expected

Conservatism in government appears to be dead as Milford citizens are hit with a Republican tax increase that outpaces the rate of normal inflation and the more appropriate measure the CPI or Consumer Price Index.

The difference from the normal CPI increase for the entire North East is a 3% gain in goods and services for 2010. The largest increase emerging from transportation costs or a 14% increase in a single area.

The nuances of each category are arbitrary and besides the point. What matters is that the new Property Tax rate represents a 3.5% increase compared to the CPI of 3.0% for our region the NE. Milford is growing its local government at a rate that is apx. 18% above normal, hardly conservative by any measure.

The areas that I found to clearly exemplify reckless spending this year, were excessive legal costs to defend illegal actions by city employees, over payment on office supplies where in some cases the city paid as much as $1,400.00 for two desk chairs. $100,000.00 of thousands wasted on reports that were un-necessary like the KRIT report, and those studies done at Eisenhower Park.

More waste was achieved when the the Tax Collector outsourced its business tax collection paying a commission of over $100,000.00. More waste again in creating new expensive government posts I.E. the Land Use Czar, Blight Czar, etc.. Waste on raises, bonuses, stipends, silly travel expenses etc. etc. etc.

Well sit back and smile and say again to your friends that you do not discuss politics, say that to Mrs. Garcia of 55 Earle St. who committed suicide during the holidays last year. Yes that is right, Mrs. Garcia was a good person, who spent many years in Milford. When the foreclosure notice came, and then the State Marshall, she killed herself!

There must be some kindred spirit, compassion or loyalty for the taxpayers of Milford. There must be some restraint on the part of the greed and avarice of some select city employees who show such unmerciful selfishness.

Those are the city employees who would rather see the less fortunate and protected city employees let go before foregoing their contractual legal right to a wage increase. But none are guiltier than those who knowingly and carelessly "rip off" the city taxpayers.

The time is now upon all of us to take responsibility for the plight of the citizenry in our community. The time is now to question the wrongs of these new excessive tax increases on those who can least afford them.

Today the Milford Mirror has come out as it does every week. Take notice of those homes that were sold for $1.00. That is correct $1.00! That Dollar represents the shattered dreams of about Two or Three families each week. Families who have lost their home to a foreclosure. Who will be their voice and why are they always forgotten?

Some may have deservedly fallen victim to perhaps slovenly laziness, avarice, or some other terrible attribute a person could have. However, there are others who do their best to stay in their homes, work two jobs, sacrifice their time with their family or worse yet cannot find a job. There are some who are widowed, have medical issues, disabilities or may be going through a divorce.

The city offers no empathy, no due regard, no help or anything useful to people who deserve a "hand up" during these "Great Recessionary" times. All the city cares about is getting their stupid "TAX MONEY."

Today I have a message to the wolves who all but guaranteed and accelerated the plight of these victimized individuals. A message that should resonate and rest at their home this evening. A message where I say to them (whoever you are), in your warm dry home. Put down your fork and walk away from that wonderful steak dinner. Open your blinds and look to your most disadvantaged neighbor and see them as many saw Mrs. Garcia. Ask yourself if you honestly believe that you did all you can do so that the next foreclosure suicide does not rest on your conscience.

How does Milford's leaders plan to help those who are not at fault for this tax increase? Tax increases that are part of an ongoing systemic leadership failure that according to departed RTC Member Tom Byrne has resulted in the city taxing its citizens upward from 98M to over 170M this year. A tax increase in a year where the "grand list" by some miracle was able to grow.

Should taxes continue to recklessly rise in the manner they are doing, eventually the city will contend with the Land Lord tenant relationship that once existed during the period of Medieval Feudalism. Property values shall become arbitrary, only second to the very taxes that are forcibly levied upon them. It shall be little more than a citizen reminder of the money due a powerful landlord who really owns the land. Is this where we are headed?

The people have been duped once again by the "big lie" of "Neo-Conservatism." The same kind that got them the raises they need to pay their own property tax increase but you left out to find it on your own.

Dollar Scheduled To Be Replaced

The dollar we carry around in our pockets have been under fire for a very long time. Once guided by the noble principles of the Bretton Woods Agreement, and backed by solid Gold the Dollar was the most respected post World War II currency in the world.

The Arab nations all have denominated dollars for the purchase of oil exports, and most every other nation in the world must purchase dollars from the Federal Reserve in order to complete their exchange with OPEC the group that regulates oil production.

The gold standard ended under Richard Nixon, the mounting war debt and pressure from within his administration to give us new money not backed by Gold, but Legal Tender. This new standard made the Economic engine of America, and the strong financial position of Americans as the new commodity that gives the dollar value.

This also gave Washington D.C. a blank check, and the ability to print money at will. Every time our country is broke Congress ordered/s the Treasury department to cart over more T-Bills to the FED for fiat cash.

This has been done to the tune of 12.5 trillion in debt, an expansion of government that is unparalleled in history and an accelerated decline of the current American system along with our economy.

The dollar policy, along with our export of jobs, and favorable climate created for overseas slave labor made America feel the Dollar had value again. Despite having a declining industrial base, American's are still able to purchase slave goods from massive import corporations like Walmart, and Target.

The Dollar abuses have now entered their "Death spiral" a term used by economists who have always known that every fiat based currency eventually collapses due to abuses. No fiat currency system in history ever survived, eventually the abuses undermine the legitimacy and value represented by the currency. People need more and more of it just to get by, and finally this year or by early 2011 it will all come crashing down.

The worlds central banks are being told by the FED as we speak to make way for a "re-valued" dollar in preparation for the collapse of the current "green back." The revaluation will be a surprise to most, and it must be if we are to avert a mass panic and a premature liquidation.

The Federal Reserve Act HR 1207 and SB 604 (in waiting) was just approved by congress, and pending lawsuits by Bloomberg against the FED are tearing down the facade to reveal the "ugly beast" hidden in the FED temple. End the Fed Rallies at every Federal Reserve have also sent a clear and concise message to the Banksters responsible for the coming meltdown.

When the curtain falls, and the abuses of the Dollar are revealed a new way of doing business in America will be launched. The new way will be nothing like the old way, because under the new system a Dollar will not exchange for a Dollar. Expect the currency to be revalued further downward. The result is the impoverishing of the American people making imported goods very expensive. Traveling abroad will also become inconceivable as this will be a privilege of the wealthy only.

The days when our forefathers saved for years to come to America may very well be our nations new Irony as this nation will commence its struggle with the very political systems that enslaved early European populations.

Socialism, feudalism, or worse fascism may be borne out of necessity in America, and under protest by the very people who watched our nation march toward a failed state. The future will certainly require us to rebuild and reinvent our place in the world.

The future will also require us to hold those who sold us out accountable and to instill the very safeguards... yet again... to keep us free as a nation. Benjamin Franklin once said that Americans have a "Constitutional Republic.. but only if we can keep it." The Constitution will never enforce itself and now that is up to us.

Above Photo: (Dollar presented to Bankers at the last Federal Reseve Meeting)

Reading Newspapers Can Be Frustrating

This is no disrespect to the great journalists who have been reporting the cold hard facts about local and state politics, but what I find particularly frustrating is the protectionism of these reporters. What I mean when I say "protectionism" is that these people rarely name names or assign blame to any one individual/s unless their crime was so egregious i.e Bernie Madoff, that it is irrefutable main stream news.

Reading the paper today, for example, I was once again livid with the big banks who not only accepted Trillions of dollars at the expense of American workers, but refuse to hire them because we will not work as cheaply as an imported foreigner.

The Connecticut Post who investigated this hurtful practice, said that Americans were not considered for these jobs because Foreigners come with " a better education, and are willing to take less pay." The U.S. Immigration and Naturalization Service confirmed that tens of thousands of H1 visas were being requested by the banks to import these workers.

Banks manipulate the system by using the "Equal Pay" requirements of less technical positions and then upscale their imported employees into jobs that are a misrepresentation of the "dummed down" paperwork submitted to the INS. Rarely does the INS even enforce this because there is too much collusion between all parties involved.

Americans still seem to be asleep, and the President of the United States Obama is still planning to respond to the threat of "total economic collapse" if he fails to remit another 890 Billion to the "banksters". But in reality this is really 1.3 trillion when we add the interest demanded by the privately held Federal Reserve Bank.

While our leaders in Washington are up in arms over the lack of transparency of the first 350 Billion, an amount that was surpassed by nearly 1.7 Trillion according to a lawsuit filed by Bloomberg and MSNBC, the "Banksters" continue to ruthlessly extort the American people without conscience.

Executive pay raises and bonuses are being paid to the tune of billions, and of course they cannot return it after the fact that would no be right! This is the prevailing philosophy of our "reasonable leaders" who ironically have been the recipients of millions of dollars in contributions from these banks.

Clearly the blame for this fiasco should be laid on Bush, Bernake, Paulson, Sen. Dodd, Sen. Frank, and now Obama for choosing to allow this corrupt system to prosper. This is a system that was enacted in 1913 under the Federal Reserve Act and has given Americans a year over year hidden tax by way of inflation. Our U.S. dollar from 1913 to present day has devalued by nearly 98%! This devaluation accelerated when Richard Nixon scrapped the Gold Standard making the Federal Reserve notes in our pockets and bank accounts nothing more than paper and ink and computer entries.

Americans have no choice but engage this system, because there is no other legal median of exchange. As long as the U.S. government can continue to control us, and the military with with this "paper and ink" system, the country will continue its slide into deeper recession and economies will not prosper.

China has called U.S. debt "noncollectable" and their dollar reserves are viewed as somewhat of a joke. Oil producing nations, are protesting the Dollar as the basis of exchange for oil because they anticipate it will be worthless in the not so distant future. These countries are so upset with the dollar that they protest at the risk of military invasion by the U.S. who sees these nations as an "axis of evil."

The public has dramatically driven up the price of Gold over the last few years to as high as $1,000.00 per ounce. Some investment firms in the public sector have been feverishly calling people with a very persuasive argument that the over printing of U.S. dollars will cause Gold to skyrocket to as high as $2,000.00 per ounce in the not so distant future.

According to Ron Paul, who along with every Republican in Congress voted against the Obama plan, said it is riddled with "Pork" and will not help solve anything with our economy. Ron Paul said Americans need to be protecting the value of the Dollar not funding the same "banksters" that created the collapse of our economy in tandem with the politicians who forced American workers to compete with global wages.

Americans are FED UP with this and they are waking up at an alarming rate. Gold sales are up, gun sales have gone off the charts and when the time comes to fight back we could expect people to defend our country one home at a time. This is truly one of the saddest periods in American history with the greatest level of betrayal the American public has ever seen. There is a reason why Congress has a 9% approval rating, its because 91% of Americans see Congress as the Terrorists who are destroying our country one "Bill" and one "Trade Agreement" at a time.

If you are fed up with this system, buy a Gun, buy Gold, buy Storable Food and Water and demand nothing of a bank. Destroy your Credit Cards, avoid writing checks, pay off your loans, refuse loans, and keep a minimal amount of cash. The sooner you understand that Banks are the enemy, the better off you will be.

Few Jobs For The Jobless

This weeks news was all about Jobs, and the impending foreclosure fiasco that comes about because of unemployment. CT has seen an increase in both job losses and homelessness. This condition has been compared to 1983, the era of the Russian Scare and the fear of Nuclear War.

Since we are now in 2009, the new fear is "Terrorism" perhaps there is a parallel but I assure you it is a weak one at that. Our biggest problem at the moment is the continued loss of confidence in the U.S. Economy, and the inability of Congress or the President to win back peoples faith. Things could not be more divided today between Democrats and Republicans who in unison opposed Obama's stimulus plan as being "too large" and "too exclusive."

Ron Paul said that America cannot restore faith in its economy with the "same solutions that created the problem we are in." Not to say that Ron Paul is Einstein, but he said that "the problems we all face cannot be resolved by the same level of thinking that created them."

This translated to the current "Obamanomics" or a continuation of the Bush policy to continue to inject seemingly unlimited liquidity or "Money" in the Macro economy. For those who are wondering what the "Macro economy" is forget it because that is not you the average struggling person with a family.

As unemployment soars, yet again in our state, many have been asking what happened to the last two trillion dollars issued by way of the economic bailout plan. The answer from the man in charge of the money, none other than Ben Bernake the head of the private corporation known as the Federal Reserve Bank told the taxpayers "thanks for the money" but its "none of your business who we gave it to." Litigation to get answers is still pending in court as MSNBC and Bloomberg are both suing the Fed for disclosure.

What are the people of Connecticut to do when an estimated 46 out of 50 states are facing budget emergencies in the next two years? The loss of faith in America is evident and Congress has a pathetic 9% approval rating. Some believe that America is headed for a "total meltdown" of the US dollar and ultimately will experience worse street chaos than the Nixon era Antiwar protests.

Should our recession turn into a Depression, and I hope it never does, Americans will wake up real fast. A sobering reminder that voting alone is not enough anymore. The new lesson one where it becomes important to actually learn more about the people we put in charge of our life, our finances. We will learn real fast that our future is actually much more important than shallowly voting for someone who is popular.

The bitter reality is coming to pass as Voters, are increasingly left Jobless, Homeless, and in the Cold by the very politicians in Congress who promised the "Moon." Speak up against NAFTA, GAFTA, EPP, and the North American Union. These are the nails in Americas coffin.

The Feds Bubble Trouble

A few weeks ago when the Fed announced a strategy designed to bring down long-term interest and home mortgage rates through unlimited Treasury bond purchases, government debt staged a spectacular rally. To the unschooled market observer, the spike may be difficult to understand. After all, why would the value of Treasury bonds rise while their underlying credit quality is deteriorating faster than Bernie Madoff’s social schedule? The move is actually a perfect illustration of the tried and true Wall Street strategy of “buy the rumor and sell the fact”.

If it is well known that Fed will be a big purchaser of Treasuries, those buying now will be positioned to unload their holdings when the buying spree begins. If the Fed pays higher prices in the future, traders can earn riskless speculative profits. If the traders lever up their positions, as many are likely doing, even small profits can turn unto huge windfalls.

The downside of course, is that all of the demand for Treasuries is artificial. Treasuries are now in the hands of speculators looking to sell, not investors looking to hold. These players are analogous to the mid-decade condo-flippers who flocked to new developments for quick profits. They did not intend to occupy their properties, but rather flip them to future buyers. Once these properties came back on the market, condo prices collapsed, as developers were forced to compete for new sales with their former customers.

This is precisely what will happen with Treasuries. Just as the U.S. government issues mountains of new debt to finance the multi-trillion annual deficits planned by the Obama Administration, speculative holders of existing debt will be offering their bonds for sale as well. In order to prevent a complete collapse in the bond prices the Fed will be forced to significantly increase its buying.

However, since the only way the Fed can buy bonds is by printing money, the more bonds they buy the more inflation they will create. As inflation diminishes the investment value of low-yielding Treasuries, such a scenario will kick off a downward spiral. But the more active the Fed becomes in their quest to prop up bond prices, the bigger the incentive to hit the Fed’s bid. The result will be that all Treasuries sold will be purchased by the Fed. But with the resulting frenzy in the Treasury market, and with inflation kicking into high gear, we can expect that demand for other debt classes that the Fed is not backstopping, such as corporate, municipal and agency debt, to fall through the floor, pushing up interest rates across the board.

In order to “save” the economy from these high rates the Fed will then have to expand its purchases to include all forms of debt. If that happens, run-away inflation will quickly turn into hyper-inflation, and our currency will be worthless and our economy left in ruins.

To avoid this nightmare scenario, the Fed should pull out of the bond market before it’s too late and let prices fall to where real buyers, those willing to hold to maturity, re-enter the market. Given how high inflation will likely be by the time this happens, my guess is that long-term Treasury yields will have to rise well into the double digits to clear the market.

But we should know that the bursting of the bond market bubble will have even more dire consequences than the bursting of prior bubbles in stocks and real estate. Significantly higher interest rates and inflation that will result will severely compound the current problems. Imagine how much worse our economy would be if we faced double digit interest rates? In addition, not only will homeowners be confronted with record high mortgage rates, but the Government will be staring at trillion dollar annual interest payments on the national debt, making interest by far the single largest line item in the Federal budget. Just like homeowners who relied on teaser rates, the Government will face a similar problem when all its low-yielding short-term debt matures.

The grim reality of course is that when the real estate bubble burst the Government was able to “bail-out” private parties. However, when the bond market bubble bursts, it will be the U.S. Government itself that will be in need of the mother of all bailouts. If U.S. taxpayers or foreign creditors are unwilling or unable to pony up, and if the nightmare hyper-inflation scenario is to be avoided, default will be the only option. If misery really does love company, Bernie Madoff’s clients might finally find some comfort.

Written by Mr. Schiff President of Euro Pacific Capital and author of "The Little Book of Bull Moves in Bear Markets"

Connecticut May Be Facing Bankruptcy Come 2012

Our state is in a financial crisis and will be in grave trouble come 2012 if the economy does not improve in the near future. The Connecticut post ran THIS article confirming that the state deficit may balloon to 2 Billion Dollars in the 2009 cycle and THIS article indicating it will be 3.3 Billion short in 2010.

The air up in Hartford is troubling as Democrats, with no one to blame for the future budget policies, were all somber and humbled with the humility of the coming broken promises of their party. Their supermajoririty backs them in a corner and makes them the only responsible party for fixing this disaster.

Democrats, however, tend to be anything but conservative, and when it comes to slashing and firing the masses in Hartford, and the associated non essential personnel and government handouts, we could expect them to fail en-masse. This is going to mean a rapid acceleration into calls for new taxes. These most likely will include increases in the Sales Tax, Increases in the Income tax, Tolls, Gas tax increases, small business tax increases and anything else they can tax.

The philosophy will be that the state will need to tax its way out of bankruptcy. The measure however will be wholly ineffective if the economy and unemployment continue to the double digit losses that economists are predicting. As inequality between persons widens so does the desperation of finding new tax exploits. These exploits can be any working person with disposable income. Everyone and everything will be fair game, even at the expense of tyranny of plunder in the name of "good governance."

The people and businesses of this state thankfully have been smart. Especially the young people who have been leaving in record numbers. To go under in Connecticut is not like going under in Montana or Minnesota, rents are record high as are utilities and services and everything carries a high tax or a fee. Those "nutmeggers who see their incomes get eroded" escape elsewhere for affordable living.

The Democrats in Connecticut are faced with a bleak future, citizens will be angry and the Governor most likely will be blamed for the ailing economy. State employee unions will entrench themselves in the state legislatures and do everything in their power to keep their jobs from going on the cutting block. The frozen credit markets may make their future very questionable. During the Weicker administration the state borrowed money from the Japanese to fund its operations. Those days are very different, today America has depleted resources and what remains today is a questionable ability to come current on future debt, especially the 11 Trillion on its way to default. Talk is that our nation is facing challenges from global banks who wish to see America lose its three star credit rating.

Connecticut also abused its bonding authority. Our state has a record amount of bonding debt, debt incurred in many cases for liberal and frivolous pork barrel projects. Debt that was recently used to also bail out the failed teachers pensions that yet again may be challenged further.

With the current trend now growing to an alarming rate, the state could incur defits that are equal in scale to those multi billion dollar shortfalls in California. There is the added problem of no new industry moving to Connecticut, and the industry that does exist here is here in credit to political intervention. I.E. Dodd and his saving of Electric Boat in Groton.

No matter how we look at this problem, the Liberals in Hartford are going to have to become Conservative. Should they fail to become Conservative and quit catering to the funding needs of anything other than a "skeleton" government" our state will end up in revolt, or, worse yet, an uncontrollable pandemonium of angry special interests denied their promised "pork."

The question remains now, can our leaders lead? or is our state headed for the disarray that Louisiana has?, a state mired in delinquent tax revenue and broken promises. The future of our state is gravely at risk, and our future leaders are going to have some tough if not impossible choices I hope and pray that the correct decisions are made and I am saddened for the victims of the future decisions State Democrats will have to make. Lastly, I am appalled that the Federal Reserve System would create a monetary disaster for our state to deal with, and in return offer no real help to anyone person.

Fed Hides Destination Of $2 Trillion In Bailout Money

The Federal Reserve is facing a lawsuit after it failed to comply with congressional demands for transparency and disclose the destination of at least $2 trillion dollars in bailout funds, underscoring once again the failure of top down socialism and the folly of trusting the foxes to guard the henhouse.

“The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral,” reports Bloomberg.

“Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.”

Bloomberg has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a separate lawsuit in an effort to find out where the money has gone.

President elect Barack Obama, who in a September 22 campaign speech promised to “Make our government open and transparent so that anyone can ensure that our business is the people’s business,” refused to comment on the story when contacted by Bloomberg, which is no surprise considering the fact that the man who guaranteed “change” has indicated he will not only follow the Bush administration policy of a socialized financial system, but radically expand it.

The Fed’s secrecy on the issue of where the bailout money is going underscores the age-old problem with top down socialism as a tool of re-shaping the economic landscape. The promise to fairly re-distribute the wealth, with full accountability, to achieve a solution that will ultimately benefit everyone, is trumped by the cold reality of the fact that corrupt elites, once the taxpayers have been suckered into believing the lie, merely hoard all the money for themselves and don’t redistribute it to anyone apart from their own inner circle of cronies.

Indeed, the banks have admitted that they are hoarding cash and will keep on doing so while bigwigs reward themselves with fat bonuses as the real economy sinks deeper into the toilet.

But what else could we have expected upon hearing that ex-Goldman Sachs executive Neel Kashkari was appointed by Paulson to dole out the ill-gotten gains of the bailout to the rest of the corporate crooks?

If you let the fox guard the henhouse then he’s going to eat the chickens.

In this case, the Fed and the gaggle of bastard banker children sucking on its teat, gobbled up $5 trillion plus in taxpayers’ money and then figuratively stuck the middle finger up when questions were asked about where that money was going.

Meanwhile, the bailout has had no effect whatsoever, increasing the severity of the financial downturn and allowing the same elite to exploit the crisis as a pretext for centralizing control of the world economic system and creating a new world order and a single global currency.


Joseph Watson

From Capitalism To Creditism Have We Lost Our Way?

The Federal Reserve System, a giant quasi-government privately owned corporation was empowered in 1913 under the Federal Reserve Act. The bill passed Christmas eve in the dark of night when many American Patriots were on Christmas vacation with their families.

Supporters argued that the Government is not suited to handle complex banking issues and would ultimately devalue the dollar and wreck the American economy. The irony today is monumental because from 1913 to today the system of credit to bankers for money has failed to the "N-Th" degree. If a dollar in 1913 bought a dollars worth, today that same dollar purchases about .02 Cents worth of 1913 goods.

This problem was the direct result of inflating the dollar supply and issuing credit to Americans who have lost a record amount of industry and productivity since then to now. Our entire economy rapidly moved from a manufacturing based economy to a service based economy where our nation is now dependent on slave labor from other nations who produce the inexpensive oil based products we love so much.

The crux today is that we have become completely dependent on credit in America, and of course I call this way of doing business "Creditism" where a majority of Americans cannot afford a home, a car, Furniture, a refrigerator, or stove. Bankers solved this problem for us with credit cards, consumer cards, and payment schedules that can drag on for 5-30 years.

As long as "Creditism" is alive and well and cheap affordable interest rates exist Americans continued to shop for new cars and invest in homes for profit. What we are seeing today in the global credit markets is the failure of these banks not only in America but across the world. Fear is rampant credit markets are frozen and investors are are scared.

The biggest fear is that Creditism is dead and now Capitalism is back, the party is over there is no borrowing money from foreign banks to live large off of small payments. Americans may now be forced into even greater productivity, and will need to reinvent the notion of trade and trust.

One thing I always believed is that in order for America to succeed in the world, and as a nation, we must take education seriously. Other nations, and especially China, graduate more scientists and engineers than the United States this poses what many experts have agreed is a "Brain Drain" that impacts the competitive nature of our country. Without a highly educated and skilled workforce America will be left in the dust globally. Big corporations, mostly those in science and technology here in America are increasing moving their companies off shore, or importing highly skilled workers from other parts of the world to solve their employee problems.

Without a highly educated and skilled workforce America could expect increased competition among unemployed workers for unskilled labor. This workforce, once more appreciated than today, does not yield the wages required to maintain the high standard of living that Americans were accustomed to. Moving into the next decade is going to be challenging, and without taking education in America seriously it will be even more difficult, if not impossible, to compete in the world wide global village that has been created.

Self serving bankers have historically steered clear of Capitalism. They still favor the concept of Creditism and it still continues to be promoted by the banks. Americans, many not knowing any better, embrace the idea that we can own things by borrowing money, paying interest and making payments on those items. Some may disagree but I personally believe that credit is the illusion of ownership, I dare call it a Ponzi scheme that caters to our consumer desires rather than the nurturing of sound economics. Sound economics being what Americans desperately need right now Savings, low credit card debt, more income, more education, and competitive skills to compete in the global economy. Until we make this as important as fighting the war on terror, than the growing group of despondent Americans will take to the streets in crime sprees to create an economy not based on productivity but criminal enterprising. This is something that any big city Mayor in Connecticut knows real well. This is something prison wardens know real well, and ignoring the millions of American's in prison, homeless and broke is not the answer.

2007 Inflation Est. at 4.1% LOL!

This figure is suspicious because my "lying eyes" are seeing excessive surges in food prices, surges in energy prices, health care cost surges, and surges in insurance premiums. These are excepting the losses we suffered because our homes are worth less, our jobs have been pared down to mostly lower paying jobs with smaller pay increases and our ability to obtain credit has diminished.

These revolutionary changes are the core that effects the common American, the "bread and butter" of life our happiness and our future. Americans are increasingly paring back, and cutting back across the board. We are taking more modest family vacations, or none at all. We already spend less on food (about 10% of our income) less than any other industrialized nation on earth. Americans consumption of poor quality food contributes to our people being sicker than ever, with record autism, diabetes, obesity, and cancers. Hospitals have earned the disgraceful statistic of being 10Th in the world in preventing preventable deaths and our farmers are losing their markets to a merciless junk food industry.

Yet our politicians continue their unrestrained spending, have mismanaged our social security, and set aside no future investment to pay for the health care they promised. With all this bad news you would think the time to get serious would finally be upon us, but instead we were given another empty unaffordable promise called the "prescription drug bill" one that has insufficient funding and will cost more than the entire national debt of 9 Trillion..

The news on the financial markets is even more troubling as our nations industrial back bone is selling out to Chinese and Arab investors. This is happening as our country continues to borrow and print money and the dollar continues to decline. Our land and our opportunities are all but more affordable. Middle class Americans continue to struggle just to survive.

Disenfranchised and apathetic as we may be, it seems that we have all but given up on life, trivialized our right to vote, evaded participation in jury duty, or excused ourselves from taking action in defense of our dying country. The threat America faces today is from within not without. Such a threat is at the hands and ideas of our leaders faults, mistakes, and sadest of all cronyism and tyranny. This mailaise is being forced upon us by a handful of evil oligarchs whose global vision is sold to us for a huge fee; Our Country and national sovereignty.

Have we forgotten that our nation was built and based on the Bill of Rights, our U.S. Constitution, and the very freedom from a British empire that ruled men like disposable property of the king? The time is upon us again that our very rights are under attack by an elite group of individuals whose vision of America is not one that takes into consideration your job, family, children's future, or your basic needs of affordable food, clean water and a safe place to raise and interact with your family. It is a vision based on globalism, world government, and a borderless America.

Turn the television OFF, start using your own mind, look at how our leaders vote, read books, read the works of our founders, and know in your heart there is something horribly wrong in America. Find a place in your heart for our country and know the continued empty promises of our leaders, and our slide toward a fascist America is wrong. We can still work to take back our individual power in America if we stand together and believe our "own eyes and ears" rather than the unbelievable news that mocks us daily with jobs reports, inflation reports and market data.

Believe in yourself, believe in America, find the answers and protect our country as if your own son or daughter. America needs you now more than ever!

Yahoo Link on Inflation 1/16/08

Armageddon Global Disaster Heading our Way.

European Stock markets were in turmoil today, thousands of people in Britain engaged in a bank run to withdraw Billions of dollars in deposits from Northern Rock Bank. Northern Rock is a mortgage lender, whose run was triggered by the banks financial crisis. This event is significant because Northern rock is Britains first major casualty as one of the nations top ten largest banks.

More interestingly this bank run is accompanied by a "Bin Laden" trade on the european stock market index. Someone placed a 4.5 Billion dollar bet that the european markets would collapse by 30% or more before the 21st of this month.

While no one knows for sure what catastrophic event could cause this market demise, many are becoming fearful that the Chinese and other nations are secretely dumping the U.S. Dollar. Although this is not yet confirmed what is confirmed is that the U.S. has printed an estimated $200 billion in new currency to bail out the U.S. economy and its banking woes. We also know that the U.S. dollar declined in value by as much as 35%-50% in the last 5 years and Gold has since doubled in value. More alarming yet every major economist is making dire predictions about the U.S. economy including Walker from the U.S. Governments GAO Accountability Office.

So what is going on in America, It almost looks like the entire country is becoming increasingly desperate to fix its troubles. Joe Lieberman our State Senator has been insisting that we need to invade Iran now to stop their nuclear ambitions, the French Foreign Minister Kouchner today warned the entire world to prepare for war with Iran and civil unrest is growing in America. Our functional internment camps in the U.S. have now grown to 600 including the reactivation of the WW2 Japanese internment camp. Oil is at new record highs on the market yet the pump price has not moved much yet.

The world is definetely on the edge. Could this be the calm before the storm?