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[Luck]

[See end of Thread for most recent Post.]

[Luck]

(OP) The Solari Report: Thursday, July 2, 2009 - 9pmET

Our 2nd Quarter Wrap-up is called "Surfing the Slow Burn." The "slow burn" http://solari.com/blog/?p=818 is my term for a centrally managed economy in which a small group of insiders covertly subsidize themselves at the expense of the outsiders through (i) monetary policy, (ii) manipulation of government resources, regulation and enforcement and (iii) manipulation of financial markets and data.

What was most remarkable in the second quarter was the distinct advantage enjoyed by those who have taken the time to understand what is happening and have positioned themselves to navigate the changes underway. The lesson of the second quarter is that understanding the "real deal" is the basis for effective action.

Indeed, when enough of us begin to do so, the possibilities for effective change grow exponentially. So despite all the "shock and awe" around us, something very positive is happening as more and more of us shift our thinking, take action and reach out to collaborate.

In our year-end wrap up, 2008: Looking Back http://solari.com/blog/?p=1929, I said that the big question of 2008 was the same one I have been asking as $4 trillion went missing from the US government: "Where is the money?" http://solari.com/blog/?p=501

In our 1st Qtr 2009: Looking Back http://solari.com/blog/?p=2379, with bailouts approaching $12-14 trillion and counting (See Bailout Mo' Money http://solari.com/blog/?p=2258), I said that the importance of this question continued to grow. With the laws related to public and private financial management treated by insiders as mostly irrelevant, the global financial coup d' etat underway was becoming more apparent http://solari.com/blog/?p=2058.

As I prepare our wrap up for the second quarter, the importance of missing money keeps growing as unemployment rises towards Great Depression levels http://solari.com/blog/?p=3342 and an out of control financial system keeps getting wierder. (See The Missing Money http://solari.com/blog/?p=3208 and $134.5 Billion Mystery Bonds http://solari.com/blog/?p=3276)

The signs are growing that the Wall Street banks have now built their war chest and are moving to ensure that Main Street is on its knees or worse as they move in for the kill. (See Stimulus or Economic Hit? http://solari.com/blog/?p=3313) Signals of subtle capital controls that will help to force the continued flow of capital to Wall Street are growing as well. (See Foreign Financial Accounts http://solari.com/blog/?p=3269 and Financial Coup d' Etat...401k Trial Balloon? http://solari.com/blog/?p=3297)

Legislation promoting control of food (See Food Safety Bill http://solari.com/blog/?p=3330), health care (See Big Cuts in Medicare and Medicaid Coming http://solari.com/blog/?p=3122 and The Data Beast http://solari.com/archive/databeast) and finance (See Obama's Sweeping Financial Regulation Plan http://solari.com/blog/?p=3228) is pending; as is energy legislation to create the framework for resource taxation and, through carbon trading, create a new generation of fraud and derivatives that embroils localization efforts in businesses that depend on government engineered corporate profits.

When all of this legislation is viewed in totality, there will be no need to formally shred the U.S. Constitution since no one will be able to understand, let alone comply, with the trillions of rules related to every aspect of our lives and we certainly will not be able to pay the taxes and fees associated with staying alive anyway.

It would appear that the American people understand the legislative and appropriation wave rolling over us. I estimate that for every $1,000,000 awarded or loaned to the large banks in bailout money, Americans purchased one gun and 10,000 rounds of ammunition.

As I described in my last June Solari Report, state governments have been temporarily supported with the stimulus package. As predicted, the pain at the state and municipal levels has continued to rise with the California budget crisis serving as a bellweather. (See Shock Doctrine California, Part I, II, III, IV http://solari.com/blog/?p=3209.)

As hopes for a last minute bailout from the federal government continue, Martin Weiss is now predicting that default is inevitable on $59 billion of California municipal bonds. This could send shockwaves through the entire muncipal market. If the Feds let California go down, more states are likely to follow. State and local land and assets, such as parks and open lands, will be ripe for the plucking. (See Financial Ecosystems http://solari.com/blog/?p=3171)
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« Last Edit: March 19, 2016, 11:58:02 am by Luck »

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http://solari.com/podcast/Solari_Report_Digest-2.mp3
Catherine points out the high cost of doing things on the cheap at the state and local levels, and the potential boom to these same economies, when the larger financial ecosystem is taken into account.
When we were talking about agriculture and I read you Sir James Goldsmith's statement, where he talks about looking at the cost of something on an inclusive basis, looking at not just making food the cheapest possible, but making all the social and infrastructure costs attributable to a change in the agriculturatl system and incorporating them in your assessment of costs. ... A lot of the promotion of centralization and incorporations has come from making very complex rules, that requires government at federal, state and local levels to do the cheapest thing within their budgets, or their line items, instead of doing the cheapest thing ecosystem-wide. There was a story up on the blog several months ago about a wonderful woman in Florida. She was unemployed, worked hard all her life, got herself unemployed, got food stamps, had a problem with the food stamps, called customer service hotline and proceeded to get somebody in India, working for J.P. Morgan-Chase. And the absurdity of the state of Florida paying people to not work, while, you know, they were basically paying somebody in India to do the same job that that person could do, struck her as ridiculous. Well, it turned out in the various media coverage of this story that they mentioned that Tennessee also had a contract for the food stamps with the same Indian site of J.P. Morgan-Chase. So one of the things that the Financial Permaculture Institute has decided to do at our event on September 22nd is to map out the financial ecosystems in and around the Tennessee food stamp program and social services program. Why do we have thousands of acres of farmland laying fallow and people not working, when, in fact, we're bringing in food from heaven knows where, far, far away, when ... people here could just be simply growing food and feeding themselves, not to mention doing the data service and customer servicing jobs. So this is going to be a fabulous real-world exercise. The reason I'm excited about it is it brings up the question how can we re-engineer government, so we do the thing which is cheapest for the taxpayers system-wide - not just within one little program item or line item. Believe it or not, if you unleash that one change, as the state and local budgets cut back, there's a huge amount of jobs and income that can be swung into local economies. It's a wonderful way to relocalize your economy. So I want to encourage anybody who's interested in that, to stay tuned, or to join us in September, the 22nd, at the Financial Permaculture Summit, here in Tennessee. It's a whole methodology you can take back to your county, and, I'll tell you, if we want to create real jobs and income in counties, what we have to do is stop trading them out. That's the first thing to be doing is to just stop shipping them out, when it doesn't make economic sense. ... If you can't join us in Tennessee, we hope to have the information available to you in other ways online afterward.

http://solari.com/podcast/Solari_Report_Digest-1.mp3

[MTPorcupine3]

Here's my interview with Catherine Austin Fitts: http://video.google.com/videoplay?docid=2705348801384234306&hl=en

[Luck]

That's a good interview with Catherine.

Here's an article about how the Feds go after alternative money promoters http://solari.com/blog/?p=3626 and below is the last portion of it, which suggests a safe alternative: silver and gold coins, which will soon be needed, when regular dollars become scarce, I mean worthless.

The Federal Reserve & US government have set their feet on a path that very well may destroy the US dollar by hyperinflation. They have massively inflated the money supply to avoid the collapse of a corrupt banking & financial system, because that system is their real master. For one of three reasons, you will have to turn to US legal tender gold and silver coin.

   1. If government hyperinflates the dollar, you'll need an alternative money to survive. US silver & gold coins are already at hand, already legal.
   2. The US monetary and financial system will never be reformed until we stop using their phony money. As long as you use their money, they control you, your future, and your capital. Only specie money can free you.
   3. Facing a collapsing national economy, we must revive local economies. To do that we need a local money that will stay local. Various community currencies have been tried, but in the end they are only unworkable toys that won't last. Anyway, if they did catch fire, the government would outlaw them and prosecute the issuers. As long as they remain only left-wing play-pretties, the government doesn't care.

Doesn't have anything to do with you? I'm afraid that in 6 to 18 months, you will understand all too well what this subject has to do with you, and that's why I'm trying to convince you, now, to learn how to do business with gold and silver coin. (To that end, Catherine Austin Fitts and I have created a website, www.silverandgoldaremoney.com that automatically gives you the gold and silver coin equivalent of any Federal Reserve note amount, and tells you how to pay it in numerous gold & silver coins.)

HOW TO START

How do you start? Well, ask everybody you deal with whether they want to be paid in paper, or in silver and gold. Ask the plumber, the handyman, the hardware store, the grocery store, the dentist, the doctor, the mechanic. Just ask - worst they can do is say No. Carry a little silver & gold around with you. When the waitress brings your check, hold out silver in one hand and paper in the other. See which she takes.

Wait, wait! One last thing. What about foreign or privately issued gold or silver coin? At 31 USC 5103 it says that foreign gold and silver coins are not legal tender. Right, but doesn't appear to present a problem. If you don't have legal tender American Eagle gold coins, the seller can by private contract agree to accept some other gold coin at the same rate, although you cannot force him to take them as legal tender. For instance, by the American Eagle standard, a British sovereign with 0.2354 troy ounce of gold would be worth (0.2354 X $50) or $11.77.

And a privately minted one ounce silver round? Well, by the American Eagle standard, that would be valued at one dollar, wouldn't it?

How would I know? Me, I'm no lawyer, so don't listen to me. Check it out for yourself.

-- Franklin Sanders
Copyright ©2009 The Moneychanger
email: franklin@the-moneychanger.com

[John Edward Mercier]

How would paper dollars become 'scarce'?

As for hyperinflation, the bond market just doesn't seem to be concerned. And ShadowStats is still showing downward trending of the out-of-system M3 money multiplier. We might have euphoria in the markets, but we have unemployment on the Main Streets.

[Luck]

I corrected my mistake. I think I meant to say worthless, instead of scarce. I.e., dollars will be worthless. Right?

[John Edward Mercier]

Cotton-based dollars if over produced would become worth their utilitarian value... which is pretty low, something like four or five cents. But to the lay person it would appear in reality that every thing else was becoming much more valuable.

Even the US Cent (penny) would appear to be worth maybe several US dollars.

[Luck]

Here's what Catherine wrote about a week ago about Depopulation.

Swine Flu: What I Believe
Catherine, Daily Musings, Financial Permaculture and News & Commentary,
July 22, 2009 at 10:07 am

I believe one of the goals of the swine flu vaccine is depopulation. Perhaps it is the goal of a swine flu epidemic as well, whether bio-warfare or hype around a flu season.

These days, I keep remembering my sense of urgency leaving the Bush Administration in 1991. We had to do something to turn around the economy and gather real assets behind retirement plans and the social safety net. If not, Americans could find themselves deeply out on a limb. I felt my family and friends were in danger. They did not share my concern. They had a deep faith in the system.

As my efforts to find ways of reengineering government investment in communities failed to win political support, Washington and Wall Street moved forward with a debt bubble and globalization that was horrifying in its implications for humanity.

Overwhelmed by what was happening, I estimated the end result. My simple calculations guessed that we were going to achieve economic sustainability on Earth by depopulating down to a population of approximately 500 million people from our then current global population of 6 billion.  I was a portfolio strategist used to looking at numbers from a very high level. Those around me could not fathom how all the different threads I was integrating could lead to such a conclusion.  To me, we had to have radical change in how we governed resources or depopulate. It was a mathematical result.

A year later, in 1999, a very capable investment and portfolio strategist asked me if he could come have a private lunch with me in Washington. We sat in a posh restaurant across from the Capitol. He said quietly that he had calculated out where the derivatives and debt bubble combined with globalization were going. The only logical conclusion he could reach was that significant depopulation was going to occur. He said his estimates led to an approximate population of 500 million. I said very quietly, “that’s my estimate too.” I will never forget the look of sadness that crossed his face.  I was amazed to find someone else who understood.

It turns out that we were not alone. Sir James Goldsmith had warned of the consequences of GATT in 1994. He described the process under way, involving the loss of land and livelihood for 3 billion people, “…This is the establishment against the rest of society.”  Voices were rising around the planet as hardships exploded from global economic warfare and industrialization of agriculture.

As trillions of dollars were shifted out of America by legal and illegal means to reinvest in Asia and emerging markets and to build a global military empire, we left a sovereign nation economic model behind. Finally, the expense and corruption of empire resulted in bailouts of $12-14 trillion, delivering a new financial war chest to the people leading the financial engineering. Now we have exploding unemployment, an exploding federal deficit, an Inspector General for the TARP bailout program predicting that the ultimate bailout cost could rise to $23.7 trillion and a Congressional Budget Director who is concluding that we can no longer afford the social safety net.

That is, unless you change the actuarial assumptions in the budget – like life expectancy. Lowering immune systems and increasing toxicity levels combined with poor food, water and terrorizing stress will help do the trick. Review the history of vaccines rushed into production without proper testing and peer review - it is clear about the potential side effects. In addition, a plague can so frighten and help control people that they will accept the end of their current benefits (and the resulting implications to life expectancy) without objection. And a plague with proper planning can be highly profitable. Whatever the truth of what swine flu and related vaccines are, it can be used as a way to keep control in a situation that is quickly shifting out of control.

In short, an epidemic can be used to offset the inflation of capital with increasing deflation of the value and income of labor and continual demand destruction. It is a great deal of time and money spent on something that will not help build a real economy. The disinformation and control opportunities are profound. They keep the slow burn going. It is the next, meaner face of “the establishment against the rest of society.”

That’s what I believe. I am not an expert. I have no case worth presenting in a court of law. There are hundreds of hours of research on the swine flu and related vaccines that I have not done and I am not going to do. It is just what I believe, listening to the people I respect, and in no small part because if you map out all the financial ecosystems around the issue and people and incentives involved, it seems to me to be the  logical conclusion.

Now, if this sounds ludicrous to you, it may be because you do not appreciate how dark the culture has become that is now in charge. Do you have any idea how impossibly frustrating it is to manage a highly centralized system in which the vast majority of people lack any responsibility to ensure that the whole thing works? Everyone wants their free lunch and there are no real markets or democracy to force accountability or a shared intelligence. Force works. Force has increasingly become the way to achieve most everything. Using force is a lot easier than living with rising risk and the costs of subsidizing an aging population.

So the question for you and me is “what do we do?” Are we going to take a vaccine? Are we going to allow our children to be vaccinated?  Will we have a choice? How can we organize to make sure that we do? Is self-quarantine a practical option? How would we prepare for it?

What you believe is your responsibility. The time has come to build time into Summer schedules to research options, discuss them with those you trust and make informed decisions about what you believe and what actions you intend to take under a variety of scenarios.

I don’t have the answers yet. Somehow, I believe we can find them together. And while we do, let’s remember to pray for the love of humanity to be rekindled and nourished in each and every heart.

[Luck]

This video http://larouchepac.com/lpactv?nid=11296 from LaRouche, not related to Catherine Fitts's http://solari.com website , seems to explain the cause of the present economic crash.

[John Edward Mercier]

The swine flu pandemic warning is more related to the nature of the deaths up to this point.
Flu kills thousands of Americans every year; but it tends toward the young, old, and those with weakened immune systems.
Swine Flu results in death from a cytokine storm feedback loop develop within a healthy strong immune system.

ABW (Advanced Biological Weapons) are mostly RNA-engineered versions of common viruses, such as rabies, for which an immune host carrier is developed.

Unfortunately the conspiracy theory of overpopulation isn't accurate... as the limitations are socially derived, not physically.

[Luck]

Flu kills thousands of Americans every year; but it tends toward the young, old, and those with weakened immune systems. - John

* Vaccines and many medications, as well as poor nutrition, weaken the immune system. So the cause of the weak immune systems is the cause of the deaths from flu.
* No vaccines have ever been proven to be safe or effective. Vaccines have not reduced the incidence of diseases. The stats show that the diseases were all greatly declining before vaccines were developed. The true cause of such declines was apparently cleaner water and cleaner food processing etc.
* How do you know about bioweapons?

[Luck]

* Libertarians and Anarchists would find much of this latest LaRouche org's video interesting, despite objections to their "welfare state" arguments, as it's about the current popular uprising against Obama and Congress: http://larouchepac.com/lpactv?nid=11396

[Luck]

LaRouche on how the Fed is hyperinflating money and how to stop it, possibly via Ron Paul's bill, or crash is imminent, with runs on banks etc after Sept 30: http://larouchepac.com/lpactv?nid=11892

[maxxoccupancy]

Flu kills thousands of Americans every year; but it tends toward the young, old, and those with weakened immune systems. - John

* Vaccines and many medications, as well as poor nutrition, weaken the immune system. So the cause of the weak immune systems is the cause of the deaths from flu.
* No vaccines have ever been proven to be safe or effective. Vaccines have not reduced the incidence of diseases. The stats show that the diseases were all greatly declining before vaccines were developed. The true cause of such declines was apparently cleaner water and cleaner food processing etc.
* How do you know about bioweapons?

About 20,000 Americans die every year from the flu.  That's why it surprises me that the MSM is still trying to scare us with so many hundreds of deaths from H1N1.  What ever happened to AIDS and car accidents?

[John Edward Mercier]

LaRouche on how the Fed is hyperinflating money and how to stop it, possibly via Ron Paul's bill, or crash is imminent, with runs on banks etc after Sept 30: http://larouchepac.com/lpactv?nid=11892

Actually we're in deflation. The FED eased credit through lower interest rates (which also lowers the interest payments on the national debt), but it doesn't seem to be leading to real growth. This is most likely due to the historically low margin requirements and already low interest that persisted just previous to the downturn.

Its doubtful we'll see much more interest easing from them... and there is fear that ongoing budget deficits will result in asset reallocation as interest rates try to rise.