Sound Money
Henry Ford once said, “It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
Are you confused by all the talk about monetary policy, fiat money and inflation? You’re not alone. Bankers and politicians have worked hand in hand for many decades to obscure their activities from the public. They hide behind elaborate structures designed to inflate the money supply while creating the false impression that they are looking out for our best interests.
Inflation is a very simple concept to understand: More money = less value. It may seem contradictory but it’s very straightforward.
For illustration purposes, join me on a brief journey of the imagination. One beautiful morning, you wake up and realize that you own twice as much cash as you had just last night. Magic money elves entered your home and bank account and simply doubled your entire cash assets. You’re now twice as wealthy (or half as poor as the case may be).
But you soon realize that the same thing happened to everyone else in the country. The money supply (total amount of money) has doubled! It’s just a one-time event and your regular income remains the same… you just got lucky this one time. It’s okay to dream, so stay with me.
What happens next? If you’re like most people, you probably start spending. You buy things you always wanted to buy but couldn’t afford. You pay back some debts. You buy stocks. In other words, you put the new money into circulation. So do most other people in the country.
Demand for many products increases because a lot more people can afford them now. Consumers are buying so much stuff that some shortages occur. To protect themselves against these shortages, shops and businesses decide to increase their prices. They know that once prices go up, fewer people will be competing to buy the same products, and the situation will be back to normal.
As a side effect of these higher prices, shop owners start earning higher profits than usual. They have more money in their bank accounts, which allows them to increase their spending. They will invest in new stock or expand their business. They might pay out dividends to their investors and bonuses to their employees, allowing these people to buy more products as well. This additional demand puts even more pressure on other shops to increase their prices.
A few months later, prices of almost everything have gone up. Suppliers and manufacturers are faced with the same threat of too much sudden demand from their clients so they too decide to start charging more.
You went on a one-time buying spree and look what happened! Your income stayed the same, but after a few weeks you can suddenly no longer afford the products you used to buy all the time because all prices in the economy have gone up.
Naturally, you demand a higher salary from your employer. If you’re self-employed or in business, you have to charge your customers more money just so that you can maintain your standard of living. Everyone else is in the same situation. Higher prices keep spreading throughout the entire economy, and it’s getting more and more difficult to make a living.
Can you see how this lucky one-time incident which at first seemed so exciting was extremely harmful not just for you but for the entire country? You briefly had a good time but now you’re worse off than before. In our story there are now twice as many dollars in circulation, but your income remains the same and each dollar you earn is worth only about half as much as it used to be. You’re really hoping for those money elves to come back.
As a matter of fact, some people, companies and banks have managed to develop an inside connection to the “money elves”, allowing them to receive new money into their bank accounts whenever they want to. The money is officially a loan (credit), but they know they never have to pay it back… they just “roll it over”, i.e. take up even more debt. With all that easy money in their accounts, and after hearing on TV that stocks only go up and that real estate prices will continue to rise forever, they tend to get a bit lightheaded and start making bad investment decisions. They know that if anything happens to their investments they will be bailed out by the government, so they do not hesitate to take huge risks with their new found “wealth”.
Let’s stop dreaming and look at the reality of things. What if I told you that these “money elves” do exist and that they spring into action not just once in a lifetime, but every couple of weeks? And that they repeatedly give money to their closest friends, but not to you? That prices are going up because the total amount of money in circulation increases, but that you’re missing out on all the fun?
Well, that’s inflation at work. Who benefits from inflation? Only those who are at the top of the pyramid and receive all that new money directly from the source. As you might have guessed by now, the source is the Federal Reserve, and its recipients include the government which “borrows” a lot of new money each year, without any intention of ever paying it back. Another beneficiary these days are failed banks that are being “bailed out” for the good of the “economy”, or defense contractors that receive money to build up our military so we can have a constant presence all over the world and fight never-ending and unnecessary wars. There was even a huge number of small-time beneficiaries who received consumer loans and sub-prime mortgages they would never be able to pay back.
What, then, is fiat money? It’s exactly what we just talked about: money that can be inflated or increased at the push of a button at the say-so of a powerful person or organization. Nowadays most dollars are just blimps on a computer screen and it’s extremely easy for the Federal Reserve to create money out of thin air whenever they want to.
If our money were backed by gold and silver, people couldn’t just sit in some fancy building and push a button to create new money. They would have to engage in honest trade with another party that already has some gold in their possession. Alternatively, they would have to risk their lives and assets to find a suitable spot to build a gold mine, then get dirty and sweaty and actually dig up the gold. Not something I can imagine our “money elves” at the Fed getting down to whenever they feel like playing God with the economy.
As you can see, inflation and fiat money are very seductive and beneficial to those at the top, and very dangerous to everyone else and the nation as a whole. That’s exactly what Henry Ford was talking about. He knew that every country that relies too much on fiat money is ruined sooner rather than later.
There is only one possible solution to the inflation problem: Stop creating money out of thin air. But we’re already in such a mess that the only way to have a real impact on the money supply is to increase interest rates so that people pay back their loans and borrow less money from the banks, which decreases the amount of money in circulation. However, higher interest rates might very well crash the economy. So the Fed’s current “solution” to overcoming inflation is… creating even more of it.
Fiat money is a dangerous addiction. Even if the Fed found a way to stop inflation, as long as the current system persists the temptation will always be there to resume pushing the easy money button. That’s why we need to get back on the gold standard and eliminate the Federal Reserve altogether.
But that won’t happen “before tomorrow morning”, as Henry Ford said, or even this year. Ron Paul believes that the first step towards monetary freedom is to allow open competition in currencies. Once gold and silver are allowed as legal tender and can be sold without sales tax, everyone can use them to store their wealth and to pay for the things they want to buy. The Federal Reserve will finally have a very compelling motivation to stay honest and maintain the value of the dollar because if they don’t, they will simply lose all their customers.
Ron Paul has been an advocate of the gold standard and open competition in currencies for many years. He is the Federal Reserve’s most outspoken opponent in Congress and has frequently questioned Alan Greenspan and Ben Bernanke about the Fed’s actions.
Join the Ron Paul Revolution and help us put the Fed where it belongs: into the history books and out of our financial lives.
Further Information
In this 1988 interview, Ron Paul talks about money, banking and the Federal Reserve, and predicts the current financial crisis.
Show: American Power Structure
Date: August 1988
Print This Page
http://mises.org/
The Ludwig von Mises Institute is an great website that explains Austrian Economics, the particular branch of economic theory Ron Paul prescribes to.
[Reply]
Jeremy Dozier replies:
April 3rd, 2009 at 12:07 am
My summary of what is going on:
Gordon Brown said he wants a new world order. That was the crazy suggestion that had no chance.
Germany and France said no new spending, France even willing to walk out if there was new spending and no new regulation. That was the other side of the pendulum.
Then compromise, if you want to call it that. The so called compromise was each country can chose to extend more spending and stimulus if they see fit.
Well, that pissed Russia and China off. Why, because by printing more dollars, we devalue the dollars they hold in treasury bonds. So, what do China and Russia do? They demand greater voting rights in the international monetary fund (IMF), which are moneys loaned to emerging market economies (po’ folks, international welfare). China and Russia also demanded we use some of our new printed dollars (which we justified printing for the purpose of funding Obama’s Budget which Biden announced tonight on CSPAN) to fund these international banks. So, U.S. dollars (actually, Federal Reserve Notes) are printed, causing inflation, decreasing purchasing power for you and me (which is a form of taxation), to fund the global monetary fund , and China and Russia benefit from getting more voting rights. See, China is already starting to demand payment on the debt – and China is demanding we make payment to a fund we currently control in order to buy them shares – seats at the table. Talk about a conflict of American Interest.
Americans are paying taxes to let China control our monetary policy. Why, because America is bailing out the Federal Reserve, which is insolvent, which is no better than any other private bank. What does the Federal Reserve hold? Gold? Audit Fort Knox and prove there is gold.
Also of note, we have to give around 250B to go towards trade deficits. Also known as – financially apologizing for benefiting from the system for so long.
Follow me here. If the Federal Reserve is a Ponzi scheme (which it is), Foreign Governments (China Included) are responsible for not doing due diligence into the investments they made. Foreign governments invested in a bad product (unfortunately, that bad product is Federal Reserve Notes, which we all use to buy Big Macs), and those foreign governments should not be bailed out (yes, that is what we are doing – paying taxes to bail out foreign countries so the Federal Reserve can maintain its high credit rating).
Screw the fed, let them fail, and lets get back to letting Congress – the Government – issue the money (with a solid backing) for the people – only as much as we need – no more, no less, – and operating from a balanced budget model with priorities on providing governmental services approved in the constitution – military, a secure border, justice, and welfare for the disenfranchised. And by disenfranchised, I don’t mean lazy.
my 2 cents, adjusted for inflation, 2 pesos.
[Reply]
Hi:
What can be done about the manipulation of markets ( particularly the precious metals markets ) by the Federal reserve and Treasury through Golman Sachs and J P Morgan ( & others ) to cover up the magnitude of the inflationary effects of their current monetary activity ? It is my understanding that over a trillion dollars has been injected into our monetary system to cover the Iraq war and to bail out the sub prime scoundrels in the past year alone. It is criminal that this is taking place and that the standard of living of we Americans is being raped by the Fed and Treasury under the lead of Bernanke and Paulson
[Reply]
What Mr. Paul states makes incredibly easy to understand sense. The big question is why hasn’t our government subscribed to this theory since they mistakenly took the U.S. off the gold standard? That was a mistake that many saw coming, and the results too, so why is it not clearly obvious that they should rethink the need for the Federal Reserve and revert to the gold standard? Mr. Paul may just be the best candidate for this issue for our times, although I do not know his views on domestic or foreign policy, but we seriously need someone who can bring back the power of the “allmighty” dollar.
[Reply]
Franz replies:
January 26th, 2009 at 11:34 pm
Hi Jack,
The reason govt has not subscribed to this is because govt is not in control. The central bankers are. They assassinated Lincoln over this issue. They assassinated JFK and RFK over this issue. So, who’s next?
Until the people wake up to the reality that plutocrats are in charge of both our govt and our corporate monopolies, they will continue to run roughshod over us all.
The hope is that people are waking up and smelling the coffee (it’s now burned.) The greater hope is that God is greater than all these plutocrats. And, He will not be mocked. Amen.
[Reply]
Schwanz replies:
February 22nd, 2009 at 10:28 pm
Forget the gold. Stockpile bottled water, canned food, bath items, pharmaceuticals and essential expendable materials. Oh yeah, don’t forget the ammo.
[Reply]
Ken Kershaw replies:
March 16th, 2009 at 6:12 pm
amen brother!!!…time to revisit the declaration of independence…
[Reply]
Billly replies:
May 12th, 2009 at 2:36 am
REVOLUTION!!!Destroy the Untouchables, the unjust, the secret combinations. Our freedoms are being raped this day. Obama is proposes to destroy our way of life, our children, our families. He wants a federal mandate of Same Sex acceptance in all public schools. We will resist. And when he comes to enforce these unjust laws on us, we will use our God given rights to defend our families and our way of life. This movement is gaining momentum. Everyone stock on food, water, and Non detriorating ammunition and weapons. Learn skills to preserve our way of life. Gardening one of many. The voice of the people will be heard! Illuminati will be detroyed. God will be our shield and protector when we put faith in Him.
Christine replies:
June 14th, 2009 at 4:43 am
The government plays a part. Have you heard of….
You’ll be a little bit surprised maybe of how much the American people have been misled and lied to on top of the secret activities of the FED.
Petrodollar Recycling
http://video.google.com/videoplay?docid=1283250336175505194
Explains why the car companies’ success is so important to keep the USA from going bankrupt, perhaps why the government stepped in to oust and replace the CEO and has % of interest in a private corporation. Why certain wars with certain leaders (Saddam, Iran soon? Afghanistan is building and Pakistan is heating up. How many more wars and deaths for Oil and World Control and Supremacy? which would be unnecessary if we lived within our means and maintained a balanced budget responsibly. We must go back to pre 1913, the FED and the IRS to have a balanced budget.)
Ron Paul of Texas – The End of Dollar Hegemony (Dollar backed by Oil)
Ron Paul elaborates more than the above link, but they are in agreement. The devaluing of the American dollar (created by the FED printing money out of thin air with no gold backing) causes the price of oil to go up.
http://video.google.com/videoplay?docid=-8327695139643041382&hl=en
Ron Paul on the Petrodollar Parts1-4
http://www.youtube.com/watch?v=SxVZ945JR5g
http://www.youtube.com/watch?v=jGWNzlWrzTY&feature=related
http://www.youtube.com/watch?v=Ekdln_NZ-P4&feature=related
http://www.youtube.com/watch?v=LgEfvi2sHQM&feature=related
Petro Dollar Motive Part I Nothing Lasts Forever 9/11
http://www.youtube.com/watch?v=Sb_tDhmE2ms&feature=related
http://www.youtube.com/watch?v=2Ag0h_uUDOc&feature=related
http://www.youtube.com/watch?v=-6CVbFZQQ4g&feature=related
http://www.youtube.com/watch?v=bCBYDzw2onk&feature=related
[Reply]
How would the gold standard work if there’s increases in population? If the population increased, there would be less dollars and more demand. This would create shortages too, but also not enough currency for people to use it to make purchases. The only answer would be to increase the money supply, which would require some sort of revaluation of the currency or gold. How would that work?
[Reply]
Tom replies:
February 13th, 2009 at 7:18 pm
Who us to say that gold will retain the value against the inflation that will be caused by having more of it? What is gold in this case, is it just something tangable? I don’t care for gold and I imagine that Im not the only one, so if there is no or low demand than how does it retain it’s value to support the dollars that it’s supposed to be backing?
[Reply]
Jacob replies:
February 28th, 2009 at 8:52 pm
What you need to see is that it doesn’t matter if it’s gold, silver, or copper. The point is that these natural materials can’t be manipulated so easily as our paper currency. Gold would also decrease in value if there was suddenly twice as much. But the fed can’t just make gold apear out of thin air. This is why the fed is not needed to control our “free” market economy. If our money were in the form of gold (or any other non man made material) the money would regulated itself.
[Reply]
John Stuart Mill replies:
March 17th, 2009 at 5:30 pm
Gold, like other metals, has worth in it’s industrial applications – it is because of its properties as an element that has made it valuable to us. There are problems with gold: hoarding and a population that outgrows the supply of gold is another. Maybe the latter will simply mean that less will be worth more.
[Reply]
Jake, I think you bring up a good question, and the first thing I need to know is what is gold worth and how much does the U.S. have. There may be ample gold in our reserves now to back a successfully valued currency, but in the old days, the only way to maintain the value is to get out there and dig more up.
[Reply]
Jack,
Think about what you just said and lets talk about if. If there are more people demanding more goods and services then the value of those services goes up. The value of the dollar would not go up because it is based on gold. Therefore, you are right in some ways that there would be shortages, but they would even out because only so many people could afford the most in demand services and goods. This has the benefit of creting competition, some one else offers the good for chaeper and more people can buy it, or (heaven forbid) savings:) If you need something bad enough, the way it used to be, you figured out how to save or make enough money to get it, these days you just use credit and that is what has caused a credit crisis.
[Reply]
All good points. Gold is the only TRUE money in the world. by that I mean gold is excentric which means whatever goods may
cost at any time golds value will always increase with the cost
of the goods. I bilieve that the private owner’s of the Federeal
Reserve have figured this out a long time ago. The authorization to print currancy and just take over the money in this country needs to be taken out of the private owners of the Federal Reserve
Bank and be put back into the hands of our House of Representatives
like it should be. Our country will continue to go in debt as long as the Federal Reserve Bank prints money and charges our Government outragious to pay it back. Which in point puts the burden on good hard working Americans.
[Reply]
Matt replies:
January 26th, 2009 at 1:03 am
Wow, the govt then controls money supply? Yikes. By the way, what happens if we go on a gold standard and there is a speculative attack? Couldn’t oil and cash-rich nations take dollars, fund countries, and swamp the world with gold, buying all of our dollars for pennies on the non-dollar?
[Reply]
Nice, a paleo-liberaterian fiscal policy right of Margret Thatcher that does next to nothing to secure job oppritunity for the proletariat. Thanks a lot, Pon Raul!
“hey guize, let’s reinstate an abandoned policy of sound money/metal fetishism and have some more lassiez faire, that worked great, didn’t it?”
[Reply]
Dan Murray replies:
June 27th, 2009 at 7:35 am
Proletariat? You’ve been reading too much Marx. You’re second sentence indicates you need to develop a better understanding of cause and effect.
I’ve been around since 1959. Communism was a disaster for every country that implemented that form of government in conjunction with socialist economic policy.
Read some history. They all fail and devolve into something worse.
Perhaps you think Cuba is an example of success? China? Just about every meaningful progress in the last 200 years has been the result of individual rights and free markets (however tainted they might be).
[Reply]
We must be carefull to recognize what “Our Money” is. It is not dolars earned per hour or per dollar invested. Our mony is the INTERNATIONAL recognition of our productivity. Manipulation through government taxation, government incentives, monetary policy, are only factors which cloud the true performance of our economic system.
The United States thrived for a long period because of our ability to “out produce” the rest of the world. I believe continued true producivity growth occurred for much of the 20th century. Thus our increasing standard of living. That being said we were sitting on a very high relative productivity level, but also a very high level of entitlement which is basically the funding of our “public sector”.
Inter-National competition is the new factor of the last 20 years affecting our economy. Competition is with natural resources, prodcutive ability, government and monetary policy.
With the EEC established to hide individual euopean country weeknesses, Rusian liquidation of natural resource, Middle east liquidation of Oil, and Asian liquidation of Labor and environment the playing field has changed.
It is a competition for our future expections, which include wealth, environment, and our sustainability. Given the fact that the world economy is now valuing our productivity ($s) less, we must carefully adjust to accept that we must start increasing true productivty again.
Ron Paul’s economic message I will say again can not be a carcophony of dissenters, but a true justifiable economic model which provides us a future with expectation.
[Reply]
One can debate the Gold Issue forever. There are benefits, but there are consequences, too! The problem is Congress and the fact that they illegally gave the power vested in them to a Private Bank, that manipulates the market, so as to Bankrupt the suckers at will so it can “cleanup” at bargain prices. It’s goals are to OWN everything, even Countries and Governments. By not allowing a Bank to FAIL is to prop up the fraudulent system of ever increasing inflation and the destruction of the Dollar.
A Gold Standard in an expanding Economy will definitely STIFLE opportunity, which is why the Government had the power to print US Notes to allow expandability and without INTEREST which can be taxed out of existance in better times. That is probably why two GREAT Presidents were assasinated. (another debate)
We are at the mercy of a private Monopoly Banking System that creates money out of thin air, lends it to the Government at INTEREST, in exchange for Bonds, backed by the American People which must be paid sooner or later by our children and grandchildren.
What we need is for the Government to do it’s JOB authorized in the Constitution. My advice would be a FIXED monetary system, maybe 3 percent, PERIOD! That would allow the Government to have an income stream and could ELIMINATE the Income Tax. The Economy would adjust quickly and the added income would allow the people to enjoy a better life without Inflation that literally is stealing our wealth like a one armed bandit!
[Reply]
Al Fata replies:
December 31st, 2008 at 1:04 pm
I have been reading a lot about this perspective and coming to believe it. One of the scary things about returning to the gold standard, is that private central banks now own 2/3rds of the world’s gold, they can and frequently do act in concert because the Rothchilds control 1/2 of the world’s wealth and probably all of the US Fed.
Reagan looked into Fort Knox and allegedly determined the U.S. owned no gold. So did we prosper during Reagan’s terms? I sure used to think so.
Lincoln’s greenback was successful without gold backing.
Wm Jennings Bryan’s slogan about Cross of Gold apparently had lots of merit.
Would the constricted supply of gold adequately allow for economic expansion everyone wants, without illusion?
[Reply]
Traditionally, before the federal reserve was created in 1913 banks lent money out based on the amount of precious metals in its reserves. These were gold and silver backed certificates to be used as a medium of exchange. Interest rates would be adjusted based on the amount of these certificates in circulation and the amount in a banks reserves. Then a group of privately owned banks endorsed by our government called the central bank decided that when the banks cut back on the money supply and raised interest rates they would step in and supply more fiat money, hence we have the Great Depression of 1929. Ironically the central bank was initially created to make our economy recession proof. Also quite interesting is that gold and the gold standard somehow came to be the scapegoat for the cause of the great depression. Our government realized that it couldn’t finance all its expenditures in an economy regulated by precious metals. It needs a deficit and it needs inflation. We should just change the name of our country from United States to Welfare States. We are now born into debt and can never truly be debt free. I only see it getting worse if we continue to follow the same economic policy. Our government is going to milk us till their is nothing left. What is the saddest thing of all is that you won’t learn this truth in school and most americans are to busy trying to be good little citizens, paying there bills, and being what our government calls relatively debt free to educate themselves on the flaws of our system. Do your part and tell everyone you know!!!!
[Reply]
I read similar article also named ey | Ron Paul .com, and it was completely different. Personally, I agree with you more, because this article makes a little bit more sense for me
[Reply]
Hi, I’m just wondering if the Fed got back on the gold standard would that eliminate inflation completely?Most economists agree that a good inflation rate is around 2-3%.You definitely don’t want deflation where the dollar gets more valuable to a point where prices go down.In this situation people hoard money as it becomes more valuable over time.This is extremely difficult to stop,actually more difficult than inflation.At the moment if the fed were to reduce interest rates it would make the dollar weaker,exports cheap,imports expensive and contribute to already high inflation caused by food,oil etc.One of the reasons they’ve been reducing rates over the past 10 years is because of cheap consumer goods from China made the fed think that inflation was no problem.If high inflation increases any more,ordinary working people could get it into their heads that inflation for the future will continue and so start making higher wage demands which could increase inflation even more.This happened back in the ’70s and was extremely difficult to stop.Finally the Chinese currency is pegged/fixed against the dollar and so if the dollar gets weaker even more cheap goods will flow into America.
[Reply]
You can debate a Gold Standard all day. As I said there are pros and cons. As long as we have a “FIXED” rate of exchange, everything else will revolve around it. The TRUE FREE MARKET, or the “UNSEEN HAND” of Capitalism, will always be volatile depending Market Forces. Yes, there must be flexability built into the System to allow for EMERGENCIES, but that was why the Government was allowed to print US NOTES at ZERO Interest and then remove the excess in better times trough Taxation and Credits.
What is happening TODAY, by bailing out Private Industry and failing Banks, is ILLEGAL and only STEALS from the future of the Economy. In the long term, Technology should make things cheaper, as that’s the natural way and a strong Dollar saved for a rainy day is the best tool the Economy could have.
[Reply]
I live in Italy, which is part of the euro zone. The tale of Ron Paul fits perfectly what happened here, of course not overnight, but in a span of roughly 3 to 5 years from the advent of the euro (€)in place of the lira (£) in 2002. The euro was fixed by our Gov’t officials at 1937 liras. Everybody was mentally biased to view an item priced at say 35 euros as if it were costing 35,000 liras, while it was really costing almost TWICE as much: we were reading 1 euro as though it corresponded to 1,000 liras, it’s a psycological trick! Moreover, cents were looked down at, as if they were just liras, while they were worth amost 20 times as much (exactly 1 cent = 19.37 liras). On the other hand, salaries and pensions remained stuck to the official exchange. Therefore we Italians now earn the same amount of liras converted into euros, but have to pay everything double, so now our purchasing power is half as it was before that damn euro came to destroy our economy, on top of the frontiers open to China and the like. So, please don’t envy us because the euro is so “fatter” than the dollar: we share your destiny…
[Reply]
The problem with the gold standard is that it would hand control of our economy to the major gold producing countries, Russia and South Africa. By changing the rate at which gold is mined, they could cause inflation or deflation in the U.S. Not very smart!
[Reply]
Let’s compare a mining increase to the increase of speed on the printing press and take a look at the results. Increase of production of gold hey we have more gold. Increase in printing the dollar hey more worthless paper…. gold still has a value and a use, even if it is worth less. I think there are many companies that could still use the gold though devalued. I.E the jewler down the street. Try winning your loves a heart with a devalued dollar fashioned into a beautifull paper ring…..
[Reply]
Question for Ron Paul: So part of your solution is to raise interest rates and “shock” the economy into an overdue recession. Kinda what Regan did back in ‘81. If that occurs, where do we go from there? What’s the way ahead to remove the unlimited government that the baby boomers created? How do you change the likes of Nancy Pelosi, Ted Kennedy, Barak Obama, and the numerous liberal Republicans whose very careers depend of the way things are?
[Reply]
I first learned of this issue through Zeitgeist, Part III.
http://video.google.com/videoplay?docid=530806696524042736
Since then, I won’t support a candidate that doesn’t plan on doing something about the Federal Reserve. Which is why I wish Ron Paul was still running. I back him 100% of this and many other issues.
[Reply]
Franz replies:
January 26th, 2009 at 11:48 pm
Hi Charles,
The Zeitgeist movies are powerful indictments of the power elite behind the Fed, greedy monopoly capitalism, Wall Street and many of the Big Govt policies and institutions that limit our freedoms and liberties.
They are responsible for the income tax which is unconstitutional. They are responsible for a failed public education system, raising generations that don’t know our nation’s history and its system of self-governance. They are responsible for a backwards academia that is more Marxist than it is American. They are responsible for a completely irresponsible news media industry that is so corrupt that you can trust very little of what you read in the papers or watch on television.
However, ultimately it is we the people who are responsible for letting ourselves be tempted to follow in their temptations. Until we the people get a spine and a heart, we will get the leaders we deserve.
[Reply]
Ron Paul wrote the prologue for Michael Minns’ book, The Underground Lawyer. In this book, I saw how the IRS treats their targeted victims and why the IRS needs to be reigned in. Just follow the link to find out more. Let’s hope Ron Paul runs again in 2012 and shuts down the IRS!
[Reply]
If you are interested enough to get more facts on this exact issue and how it has come to control so much of our wonderful America, read “The Shadows of Power” by James Perloff.
[Reply]
ron paul is the last hope for this country without him we are doomed
bush and mccain want to see world war 3 so bad they can taste it
and obama dosent seem to like the american flag not only pinned on himself or on his airplane either so im sorry i cant trust him
RON PAUL 08 OR ELSE WE ARE DOOMED
THANK YOU
[Reply]
Dear Ron Paul fans,
I think there is also a short term solution to the financial crisis.
I know mortgage bond investors are banking on interest rates of ARMs resetting at higher rates but it seems to me this whole forclosure problem could be mitigated by the financial institutions themselves extending the terms of the loans out a few years or fix them at reasonable rates. ARM extensions could be distributed and graduated out to minimize the risk of exposure to defaulted loans.
This action could be self regulated or government regulated. The bond investors may see lower yields, banks might make slightly less but all would continue to profit. Foreclosure rates would fall dramatically. Business models would stabalize. The government (the people) would not need to save anyone. The entire economy would recover.
Fractional reserve lending laws permit banks to loan out 10 times the value of their reserves. This means if mortgage interest rates are 6% then their actual profit is 60%. That is an extremely good return and does not include other revenue streams. This economy is being crushed by entities who are capable of fixing it with a stroke of their pen and who could remain extremely profitable in the process.
Why not do it. Why not extend out the terms of these ARMs facing default or foreclosure because of interest rate adjustments. Auctioning homes for less than they are worth can not be good business. Bankruptcy, corporate take over, government bailed outs, recapitalization and federalization do not seem like a better alternatives.
We need to publicly make this suggestion to the banking industry. This is how to recover the US economy on the short term.
Interesting note: I was watching an alumni video from one of the nations top ivy league schools. Bernanke was a guest speaker invited to discuss money and debt with graduate level economics students. His main point was, debt is motivation for innovation and without debt, corporations would continue to stagnate on steady streams of income until some event takes them out. Like an environmental change in the market or a new competitor. To motivate officers to innovate and get off the golf courses, CEO’s may plunge corporations (as polititions may lead nations I guess) into debt. This is a tool used to cultivate creativity and nose to the grind stone work ethic. This may also be why we see executives receiving golden parachutes despite their leadership driving companies into financial dispair. It is all about creating ruthless competitors. It is all psychology, like our belief in the dollar or the value of the stock market. Perception is everything and money means nothing to those with the power to print it. It is simply a tool or carrot at the end of a stick.
[Reply]
Most of Ron Pauls backers should read THE CREATURE FROM JEYKEL ISLAND, OR THE SHADOWS OF POWER, I personally think were to far gone, EVERY ONE HAS BEEN SLEEPING FOR DECADES!!!!THE INSIDERS WILL
NEVER LET GO ! HAVE A NICE LIFE & WATCH I ONLY WISH RON COULD BAIL US OUT MAYBE WITH A FEW MILLION JOINING IN WE CAN PREVAIL.
[Reply]
I’ve heard that adherence to the Yellow Brick Road (gold standard) may have helped cause the Great Depression, and that the money elves (inflation, Federal Reserve) may have helped get us out of it. I’ll let other people debate that. The reason I don’t like the Gold Standard is what people do in their lust for Gold. Maybe it’s no different than the lust for Green, but we’ve already got conflict diamonds, conflict tantalum, and conflict gold I’m sure. I value children, but not for their ability to dig up elements. People love easy money, so if money becomes hard to create, they’ll just force someone else to do the hard work. We know where the Yellow Brick Road leads. One thing I’m suspicious of when someone (Ron Paul, whoever) claims to have all the answers is that this person wants to make those answers reality overnight. We’ve seen what happens with overnight change. After 9/11, people decided they didn’t want to fly anymore. This is a choice they were free to make, but because they all made it all at once, it was a disaster for the airlines. I’m not a professor of economics, but couldn’t we just make the Federal Reserve more fair? Can’t we just let these banks die when they run out of money (just like you and me are free to die when we run out of money) and just bail out the individuals (FDIC)? I’m not convinced the ability to pull money out of thin air is a totally bad thing. Like any ability, it can be used for good or ill.
[Reply]
My research shows that we aren’t even actually on a Federal Reserve System. We are actually on the Special Drawing Rights system passed in 1970. I have only read half of the Act of Congress which created it, because it is over 1,000 pages long. True it is an international monetary system. Why do we go to War? Because the Special Drawing Rights system allows our government to draw on the money we steal from other countries during a time of War. This system allows the Federal Reserve to print money based on that “Special Drawing Right.” This Act of Congress can be blamed for all of the inflation which occurred since 1970. Not only do we inflate our currency with government spending, we inflate it with “Guarantees” which allow Private Corporations who are members of the Overseas Private Investment Corporation to exchange foreign currency for American Currency, but only in a time of War, Riot or insurrection.Can you see now how we bailed out the private businesses in Iraq?
Let us all get off this international system and help Ron Paul to promote the Gold Standard, even it it hurts a little in the beginning.
[Reply]
Well, Ron, people that love the upcoming multi-trillion dollar mortgage bailout will LOVE libertarians like you. It’s an unparalled disaster of historic proportions which was caused by EXACTLY the philosphical thinking which is the backbone of your party – deregulation, privatization, “free trade”, corporate protectionism, and lack of investment in oversight. And while those types of policies could (and did) cause a crisis like this, what do libertarians propose to do when the inevitable happens? There’s only two choices – bail ‘em out, or let everbody go bust. BOTH choices are nightmares which are easily avoided by the obvious – avoiding the libertarian point of view in the first place.
[Reply]
RESPONSE to thenekkidtruth Sept 6,2008:
It is of course unfortunate that thenekkidtruth who obviously cares about this country, had not done enough research before writing the above in orderto fully understand what Mr Paul has been explaining for decades. Let me briefly set the record straight by saying: 1- Dr. Paul does not wish for any bailouts and to do so would invite even greater disasters if one can conceve of a larger one.
2- These bailout schemes are eminating only from the power elite and the fed acting in colusion with the Treasury Dep, large money-center banks and certain priveleged security dealers. By artificially lowering interest rates far below where the free market would tend to set them, the Fed created unnaturally lax credit markets resulting in bankers and others participating in the huge US housing mortgage industry where lenders were willing to lend to buyers who, in rational market conditions, would not have qualified for loans, or who might have qualified under much more stringent terms of repayment. This is what caused the crisis, not free trade or privatization or “lack of oversight” by more government officials. Exactly this type of more oversight and regulations are now being foisted upon us by Secretary Paulson and Ben Bernanke, the Fed. and the Treasury Dept. in the newly organized “Market Stability Regulator” which if we don’t get up on what’s really going on behind our backs, we really will have that “unparalled disaster..” as theneddidtruth mentioned. For more info look into the new Treasury Departments “Prudential Regulator”, a yet unnamed regulatory behemoth which will be in complete charge of all “firms with federal guarantees,” and the “Business Conduct Regulator,” which would “monitor business conduct across all types of financial firms,” including “key aspects of consumer protection such as rule-writing for disclosures, business practices, and chartering/licensing.” TALK ABOUT OVERSIGHT Mr. thenekkidtruth!! We don’t want or need it!!
It gets worse…this new steriod enhanced Fed “will have broad new powers” and “corrective authorities” (note the plural) over the entire financial sector, as well as the means to snoop on any financial activity anywhere- What Henry Paulson is proposing is nothing less than turning the Federal Reserve into a Dept of Homeland Security for financial activities, with the same sort of abuses, controls and institutional incompetence as the latter organization. By the way, this blueprint has been in the works since at least March of ‘07, well before the financial crisis broke! The blueprint was, according to the Treasury Depts Fact Sheet, the product of unnamed “industry leaders and policymakers” planning to overhaul our “outdated financial regulatory network.” Additionally, with the ongoing financial turmoil, “market conditions today provide a pertinent backdrop for this study’s release,” the Fact Sheet wryly notes!! Thus we have been treated over the past few months to a series of well-planned, possibly coordinated events preparing the way for a radical new foray into financial socialism. As if no cue, liberal members of Congress, like Senator Charles Schumer, have already criticized the Treasury Depts new plan of not going far enough! WOW! The legislative outcome, therefore, is likely to transform America’s entire financial system into a virtual arm of the government, stifling further innovation, squelching risk, and limiting growth. In the long run, the effect of such a revolution would be devastating: No more double-digit returns on investments, for example, or financial privacy. Buying insurance or a mortgage of any description would become as irksome as paying federal income taxes. Asset growth of all kinds would stagnate as the risk-free environment of total financial socializm, long envisaged by Americas elites and the Fed, slowly but surely suffocated our once-vibrant, risk-dependant free-market system. And it goes on: As financial insecurity continues, expect further innovation on the part of Bernanke’s Fed, and further calls for more government controls. Only principled, concerted, well-publicized resistance from us will stave off Bernanke and Paulson’s financial dystopia, further bailouts (with 100% taxpayers money) and a national & international bust that will make ‘29 feel like a mosquito bite. When was the last time you wrote your congressman or woman?
For more info, see Charles Scalingers’ “The money trust’s next move” April 28,2008 TNA
[Reply]
I was simply wondering, since you are discussing money, where you stand on the FairTax Bill introduced into Congress by Congressman John Linder.
I’m SURE that you are familiar w/ it…..but just in case you aren’t….or in case you have forgotten the details….I’ve taken the Liberty of outlining it’s basics….
The FairTax Basics
The FairTax has been called the most thoroughly researched tax reform plan in recent history. This section offers a quick introduction to the FairTax and tax reform.
Scholarly research tells us that . . .
The FairTax rate of 23 percent on a total taxable consumption base of $11.244 trillion will generate $2.586 trillion dollars $358 billion more than the taxes it replaces. [1]
The FairTax has the broadest base and the lowest rate of any single-rate tax reform plan. [2]
Real wages are 10.3 percent, 9.5 percent, and 9.2 percent higher in years 1, 10, and 25, respectively than would otherwise be the case. [3]
Disposable personal income is higher than if the current tax system remains in place: 1.7 percent in year 1, 8.7 percent in year 5, and 11.8 percent in year 10. [4]
The economy as measured by GDP is 2.4 percent higher in the first year and 11.3 percent higher by the 10th year than it would otherwise be. [4]
Consumption increases by 2.4 percent more in the first year, which grows to 11.7 percent more by the tenth year than it would be if the current system were to remain in place. [4]
The increase in consumption is fueled by the 1.7 percent increase in disposable (after-tax) personal income that accompanies the rise in incomes from capital and labor once the FairTax is enacted. [4]
By the 10th year, consumption increases by 11.7 percent over what it would be if the current tax system remained in place, and disposable income is up by 11.8 percent. [4]
Over time, the FairTax benefits all income groups. Of 42 household types (classified by income, marital status, age), all have lower average remaining lifetime tax rates under the FairTax than they would experience under the current tax system. [5]
Implementing the FairTax at a 23 percent rate gives the poorest members of the generation born in 1990 a 13.5 percent improvement in economic well-being; their middle class and rich contemporaries experience a 5 percent and 2 percent improvement, respectively. [6]
Based on standard measures of tax burden, the FairTax is more progressive than the individual income tax, payroll tax, and the corporate income tax. [7]
Charitable giving increases by $2.1 billion (about 1 percent) in the first year over what it would be if the current system remained in place, by 2.4 percent in year 10, and by 5 percent in year 20. [8]
On average, states could cut their sales tax rates by more than half, or 3.2 percentage points from 5.4 to 2.2 percent, if they conformed their state sales tax bases to the FairTax base. [9]
The FairTax provides the equivalent of a supercharged mortgage interest deduction, reducing the true cost of buying a home by 19 percent. [10]
[Reply]
Fair tax, Sales tax, Gold base, all make sense as they are a return to our basics. However as I read all the comments above I can’t help but wonder if the unseen true plan of the Fed is to enjoy short term lending profits while quietly positioning the American economy to accept the formation of the NAU as a bailout which will then increase the banks grip on a larger economy. When the Russian economy faltered the EU formed, and as Marco said above, things are not better.
Our strong America was built on sound basic policies embraced by individuals, business, and government. Work hard, engineer and produce superior products, lookout for families and neighbors, keep money in the bank, grow carefully with a plan for the future, borrow only when necessary AND only what we can pay back, and VOTE. I work to give my children these values and believe that Ron’s grass roots plan can re-instill these basics nationwide. Perhaps then we will create a voting block capable of fighting all poor policies and make positive change towards sustained economic strength for all Americans.
Our great bear “America” is getting weaker and the wolves are watching.
[Reply]
* These are my opinions *
Although I like the idealism of the issue, there simply isn’t enough gold and silver to cover the current tangible assets of the US, so a gold and silver standard would likely result in a stalled economy.
There are other, less extreme solutions that I feel would be more receptive to everyone, such as
*) Expanding his proposed gold and silver standard to apply to a broader range of tangible assets, such as traded commodities (diamonds, rubies, copper, steel)
*) De-privatizing the Fed by either entirely putting it in the control of the Congress or changing its owning interests to include majority control by the states’ congresses.
*) Making it a statutory requirement to get congressional approval before creating money.
*) Making it illegal to profit from or hold any fiscal or controlling interest in any agency that receives credit from the Fed [e.g. via fiat money].
Those are just some ideas, but they’re far more likely to pass executive and congressional approval than ‘going back to the gold standard’.
[Reply]
The USA paid 480 billion dollars in interest in 2007 on borrowed money. That amount required using 37% of every tax dollar collected.
There is no logical reason to pay the private stockholders interest on money they created out of nothing, they actually did not own in the first place.
We could pay for our schools, roads, energy, college funding and provide almost no interest home loans if we eliminate the FED.
Congress has the power to eliminate the FED. We have to insist as a country that this be done. Individual congress and senators will not make any changes alone (it’s surprising Ron’s alive); it will take every state demanding it.
It’s time to get the retired people of this country off their chairs to do the leg work and get this done.
Now is the time to GET RID OF THE FEDERAL RESERVE. Educate your family members. 99% of american’s are clueless about these matters.
[Reply]
i don’t think that a non-fiat monetary system needs to be based solely on gold. there are a number of other precious metals out there, mainly palladium and platinum, that could be factored into the equation. using those metals, as well as gold and silver, there would be more than enough collateral to cover our assets, as well as provide room for growth. we desperately need to get away from our current system before it spirals out of control. when china is funding the majority of our government by buying bonds each and every quarterly refinancing, something is seriously wrong. one day we’re gonna have to pay up and that day isn’t going to be pretty.
[Reply]
It would be nice if all the government expenditures where tied directly to tax increases. Because we simply borrow all the money I think the country supports a lot of things (ie Iraq War) they would not support if they saw a hard number of how much their taxes would go up. Its the same with government bailouts people dont realize how it affects their bottom line as far as taxes.
[Reply]
If you believe, like I do, that we need to weigh options and look at the risk of bailing out our financial sector, then please consider protesting this effort. In Dallas, I am organizing a protest on Sunday, September 28 at 9am. Find more information at http://dfwsaysno.ning.com/ but also consider organizing an effort in your community. If our legislators do not understand our interests they will never vote in our interest. It is our responsibility to share our beliefs and values so that our representatives can truly represent them. Thank you, Mr. Paul, for sharing your views and your unique viewpoint – views that many share with you but aren’t being represented in Washington today!
[Reply]
I’m So sad that neither canidate even references the Constitution during the Presidential debate…
[Reply]
J M replies:
December 30th, 2008 at 5:44 pm
I agree with you Al Bombler, the parchment in which our country was founded upon is no longer important to even the highest of political positions. Why do I feel like most american citizens would rather watch tv then understand how they are getting screwed. How do you compare the government stealing your money (which you cannot see) to something like getting poked in the eye with a stick? Sometimes I can’t stand people around me when I ask if they care about the government and they answer “naw, I don’t really care”.
It’s like the few are being punished by the many…I ******* hate it.
Thank you Ron Paul, you are a true leader and a hero of mine for speaking your mind. It sucks that the media cut you off and your own party turned it’s back on you when it was needed. I just fear that it’s too late now.
[Reply]
Hello,
Would you consider:
Is Congressman Ron Paul being solicited for a responsible position in your Administration?
Nouriel Roubini: Bailout benefits only banks and their unsecured creditors
Submitted by cpowell on 06:11PM ET Sunday, September 28, 2008. Section: Daily Dispatches
There were many other options available to Congress RIGHT NOW to structure SOLUTIONS IMMEDIATELY as also outlined by Congressman Ron Paul and Congresswoman Marcy Kaptur.
Read and Weep as “It is pathetic that Congress did not consult any of the many professional economists [Like Roubini] who have presented alternative plans that were more fair and efficient and less costly ways for resolving this crisis. This is again a case of privatizing the gains and socializing the losses, a bailout and socialism for the rich, the well-connected, and Wall Street. And it is a scandal that even congressional Democrats have fallen for this Treasury scam, which does little to resolve the debt burden of millions of distressed home owners.”
By Nouriel Roubini
Roubini’s Global EconoMonitor
Sunday, September 28, 2008
http://www.rgemonitor.com/blog/roubini/
Is purchasing $700 billion of toxic assets the best way to recapitalize the financial system? No. It is rather a disgrace and ripoff benefitting only the shareholders and unsecured creditors of banks.
Whenever there is a systemic banking crisis there is a need to recapitalize the banking/financial system to avoid an excessive and destructive credit contraction. But purchasing toxic/illiquid assets of the financial system is not the most effective and efficient way to recapitalize the banking system. Such recapitalization — via the use of public resources — can occur in a number of ways: purchase of bad assets/loans; government injection of preferred shares; government injection of common shares; government purchase of subordinated debt; government issuance of government bonds to be placed on the banks’ balance sheet; government injection of cash; government credit lines extended to the banks; and government assumption of government liabilities.
A recent International Monetary Fund study of 42 systemic banking crises across the world provides evidence on how different crises were resolved.
First of all, only in 32 of the 42 cases was there government financial intervention of any sort; in 10 cases systemic banking crises were resolved without any government financial intervention. Of the 32 cases where the government recapitalized the banking system, only seven included a program of purchase of bad assets/loans like the one proposed by the U.S. Treasury. In 25 other cases there was no government purchase of such toxic assets. In six cases the government purchased preferred shares; in four cases the government purchased common shares; in 11 cases the government purchased subordinated debt; in 12 cases the government injected cash in the banks; in two cases credit was extended to the banks; and in three cases the government assumed bank liabilities.
Even in cases where bad assets were purchased — as in Chile — dividends were suspended and all profits and recoveries had to be used to repurchase the bad assets. Of course in most cases multiple forms of government recapitalization of banks were used.
But government purchase of bad assets was the exception rather than the rule. It was used only in Mexico, Japan, Bolivia, Czech Republic, Jamaica, Malaysia, and Paraguay. Even in six of these seven cases where the recapitalization of banks occurred via the government purchase of bad assets, such recapitalization was a combination of purchase of bad assets together with other forms of recapitalization (such as government purchase of preferred shares or subordinated debt).
In the Scandinavian banking crises (Sweden, Norway, and Finland), which are a model of how a banking crisis should be resolved, there was not government purchase of bad assets. Most of the recapitalization occurred through various injections of public capital in the banking system. Purchase of toxic assets instead — in most cases in which it was used — made the fiscal cost of the crisis much higher and expensive (as in Japan and Mexico).
Thus the claim by the Fed and Treasury that spending $700 billion of public money is the best way to recapitalize banks has absolutely no factual basis or justification. This way of recapitalizing financial institutions is a total ripoff that will mostly benefit — at a huge expense for the U.S. taxpayer — the common and preferred shareholders and even unsecured creditors of the banks. Even the late addition of some warrants that the government will get in exchange for this massive injection of public money is only a cosmetic fig leaf of dubious value, as the form and size of such warrants is totally vague and fuzzy.
So this rescue plan is a huge and massive bailout of the shareholders and the unsecured creditors of the financial firms (not just banks but also other non- bank financial institutions). With $700 billion of taxpayer money the pockets of reckless bankers and investors have been made fatter under the fake argument that bailing out Wall Street was necessary to rescue Main Street from a severe recession. Instead, the restoration of the financial health of distressed financial firms could have been achieved with a cheaper and better use of public money.
Indeed, the plan also does not address the need to recapitalize those financial institutions that are badly undercapitalized. This could have been achieved by using some of the $700 billion to inject public funds in ways other and more effective than a purchase of toxic assets: via public injections of preferred shares into these firms; via required matching injections of Tier 1 capital by current shareholders to make sure that such shareholders take first-tier loss in the presence of public recapitalization; via suspension of dividends payments; and via a conversion of some of the unsecured debt into equity (a debt-for-equity swap). All these actions would have implied a much lower fiscal costs for the government as they would have forced the shareholders and creditors of the banks to contribute to the recapitalization of the banks.
So less than $700 billion of public money could have been spent if the private shareholders and creditors had been forced to contribute to the recapitalization. And whatever the size of the public contribution, its distribution between purchases of bad assets and more efficient and fair forms of recapitalization (preferred shares, common shares, sub-debt) should have been different.
For example, if the private sector had done its fair matching share, only $350 billion of public money could have been used; and of this $350 billion half could have taken the form of purchase of bad assets and the other half should have taken the form of injection of public capital in these financial institutions. So instead of purchasing — most likely at an excessive price — $700 billion of toxic assets, the government could have achieved the same result, or a better result of recapitalizing the banks, by spending only $175 billion in the direct purchase of toxic assets. And even after the government will waste $700 billion buying toxic assets, many banks that have not yet provisioned for such losses and writedowns will be even more undercapitalized. So this plan does not achieve even the basic objective of recapitalizing undercapitalized banks.
The Treasury plan also does not explicitly include an Home Owners Loan Corporation-style program to reduce across the board the debt burden of the distressed household sector. Without such a component, the debt overhang of the household sector will continue to depress consumption spending and will exacerbate the current economic recession.
Thus, the Treasury plan is a disgrace — a bailout of reckless bankers, lenders, and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown.
It is pathetic that Congress did not consult any of the many professional economists who have presented alternative plans that were more fair and efficient and less costly ways for resolving this crisis. This is again a case of privatizing the gains and socializing the losses, a bailout and socialism for the rich, the well-connected, and Wall Street. And it is a scandal that even congressional Democrats have fallen for this Treasury scam, which does little to resolve the debt burden of millions of distressed home owners.
—–
Nouriel Roubini is professor of economics at the Stern School of Business at New York University.
[Reply]
I believe that if Ron Paul did not run for President, and shine the light on monetary policy, this bill would have passed today. This is a tribute to Dr. Paul and the work he has done to provide real change and help our country build an economy on sound economic, free market principles.
Thank you Dr. Paul!
[Reply]
Capitalism died tonight. Hopefully, this movement will make it alive again. WHy does Washington ALWAYS panic? McCain =’s Obama.
[Reply]
I emailed the White House asking them to veto the bailout. I dont’ think it will work, but it is the last resort right now…
[Reply]
There is still a constitutional, though admittedly statistically small possibility of Ron Paul getting into the presidency. If the clueless in charge are unable to maintain the economy (by pumping in trillions $) until one of the chosen stuffed-shirts is picked at the convention, the delegates (Democratic or Republican) may wise-up and vote in Ron Paul, who is the only candidate that understands and communicates what he understands is happening in the financial markets. It would be a small blow to “democracy” in America, but it would be within the legal framework- the choice by delegates as last step was purposefully mandated by the constitution for cases just like this (i.e., people come to realize they are about to elect someone that HAS NO CLUE as to what is going on in a time of dire need).
I would give it 1:1000 of happening, but hey it is possible. If a couple more trillion $’s keep the game going until January, then the sheeple will get the stuffed-shirts.
Ron Paul needs to keep up his campaigning right up to the day of the convention. Everyone needs to contact delegates and make them realize they have this power.
http://www.TakeBackTheFed.com
[Reply]
Watching the debate, it is comforting to know that the 10th Amendmant is dead!
[Reply]
Thank you Ron!
[Reply]
[...] unless youre a economic guru and really knows how it works, I think everyone needs to read this… Our Money | Ron Paul .com GM is in the tank, Ford is down to two bucks a share (was 9.50 a year or so ago) its bad…and [...]
This post is from an Indian context, but is relevant everywhere. Simplistic, but does make sense. Check it out
http://memorymaniac.sulekha.com/blog/post/2008/10/in-defense-of-capitalism.htm
[Reply]
Nice history of american currency, love the floyd
[Reply]
OK, so this “injecting or creating new money” philosophy intrigues me. If I am understanding this correctly, when the US gov’t needs money it is basically just printing more. However, these days it is done electronically and not with actual printing presses, right? So in a nutshell, this is the same philosophy that damned many Latin American countries in the 70’s and 80’s. Countries like Brazil, Mexico, Argentina, Chile, etc. who constantly had to reset the face value of their currency, because their “print more money” philosophy accomplished nothing but all things costing way more than was necessary. A good example was Mexico’s change over from the PESO to the NUEVO PESO … they merely truncated three zeros off the face value of the PESO, so every 1000 PESOS equaled a NUEVO PESO. And then the inflationary race continued against the US dollar. It may sound harsh, but maybe what the world economy needs is to be based on a totally different currency and not the US dollar, like a precious metal of some sort.
[Reply]
The more I read about Ron Paul, the more I start to love the guys views.
[Reply]
I voted for Ron Paul as a write in candidate in California out of pure principal. Hope you run in 2012!
[Reply]
Gold an silver are measured by weight and atomic power numbers. “”In the modern periodic table, the elements are actually arranged in order of increasing atomic number–that’s the number of protons in one atom of a particular element. Atomic weight almost always increases with atomic number, so Mendeleev’s sequence of elements was almost exactly the same as the one used today,”"
Very usefull items for building or supplementing other minerals. IE==Valuable
Presidents are collectable. Some were considered statesmen in their day. Some were considered traitors. All so far have been men who were photographed and put on designated numbered pieces of paper which is made from a harvestable plant. Money does not grow on trees. Remember that old saying? Maybe those born after about 1980 do not since most did not ever want to here that again.Nor teach it in their schools in this country we call free. After all your teachers would like a raise just to put up with the vast majority of Studants who have no class and no clue. Yet the best thing they could ever do is to work cheaper and bring you into the real world instead of their troubled world.But these words are meant for older than most of you are and that means teachers also.
Few of you will read these words of wit for what they actually imply.Instead you would rather tear down Patriots who waste their valuable time trying to educate morons. The simple fact that what the words coming from the likes of a Ron Paul are so different from what you actually live and expierence should alert you to their own genius in definition. But no you are still suseptable to the nonsense of your controlling parents who were afraid to let you go out at night by yourself since what did they gain from their own expierence but a snotty little leftist whiner that they had to take care of while they missed the greater parts of their young adult lives.
As you grow into maturity you will change your thinking at least every decade depending on your expierences. Most of you will be manipulators because it is the easy way out.Some of you will be individuals of wit and humor and will sell your wares on the stage. Even less of you will be able to extinguish between the two.(the true masters of the world) President Obama now gets his chance to show you what he will do and you get your chance to watch and learn or judge. Depending on your age and your expierence’s in life will tell you what YOU are if you can read it, by how you interpret your countries leader.
Now that trillions have been entered in the market place to supplant the trillions sitting in the pockets of the shorts and only debts to each other remain on the balance sheets what encentive is there for an older non producer of goods and services retired or otherwise to compensate the market for Pensions and promises unpayable and in a continual spiral of rising compensation? Not much you say? Or maybe just be a rider on the storm.
[Reply]
there is a typo in the third paragraph starting with ‘inflation’. it should read, “it may seem contradictory…”
Ron Paul is brilliant!… which is saying a lot, considering his being a politician
[Reply]
Thanks.
[Reply]
Where does Ron Paul stand on Taxes and Spending? This site doesn’t mention it at all.
[Reply]
[...] Paul ranked third for the position of Treasury Secretary. He was surpassed only by former Federal Reserve Chairman Paul A. Volcker and former Treasury Secretary Lawrence H. [...]
http://www.commondreams.org/newswire/2008/11/14-5
I would be curious to hear what Ron thinks of this article.
I am lost at what is happening around us…. and not for bailouts.
[Reply]
Surferonice…So much to say…validated by experiences, why stop where ? We are all simply living someone elses dream…our chosen nightmare. Choose Freedom…Regulation = Death! Jack Nicholson once declared in a movie “You can’t handle the truth!” It’s the Gods honest truth…Most would much rather be lied to than to have to think outside their egocentric little boxes. Slavery is alive and well in our economic dreamscape.
[Reply]
“Nowadays most dollars are just blimps on a computer screen.” Now this thought is the scariest one in this whole article. I actually have been thinking about this concept for a long, long time. What really is money any more? Does even gold have much instrinsic value? Do we revere gold as much as we used to, or is it much more common and available? Blips on a computer screen – that is what all our money transactions are any more. If anybody thinks about too long, it can make your brain hurt, like looking at the night sky and thinkinga about all the stars out there. That’s why nobody seems to think about it for more than a few seconds. Can the monetary system of the world be anything more than a house of cards, and as such can it do anything but fall?
[Reply]
[...] in trying to pick and choose which worthless asset that we’re going to buy, and of course the Federal Reserve is involved in injecting trillions of dollars that nobody seems to be keeping track [...]
[...] in trying to pick and choose which worthless asset that we’re going to buy, and of course the Federal Reserve is involved in injecting trillions of dollars that nobody seems to be keeping track [...]
We have anti-trust laws to prevent monopolies. HOW ABOUT ANTI-TOO-BIG-TO-FAIL LAWS? If I company or group of companies grows too large then they would be forced to break up.
[Reply]
Add to all of this the enormus trade unbalance. No one preaches buy American like in the last generation-before baby boomers. Pretty soon there will be few good paying jobs here. Obama is a bad joke leftist and Bush was another kind of Idiot. Welcome to America. Its sad but a reflection of our un-godly populace unfornuately. Payday is a mother.
[Reply]
I heard that Steve Forbes recommended going to the gold standard with gold pegged at $550 per ounce. That is $300 less than its current market value.
Could Forbes proposal be accomplished effectively?
What would the conversion to the gold standard at market price do to the various segments of our society in the short run?
Would not there be lots of winners and losers, mostly losers?
Is there enough gold in the world to make this proposal feasible?
Has anyone put together a bill that would layout the step by step conversion to the gold standard?
[Reply]
Last night I watched a 23 part series on the Federal Reserve System and the International Money Changers. It takes about 2 hours to see the whole thing, but it is well worth the look.
I learned that fiat money, done properly, as Lincoln did (greenbacks, they were called) is better than having a gold backed currency. The film explains that America’s gold has been stolen by the international bankers and going back to a gold standard would put us at horrible risk. (Any commodity can be used to back
currency, btw, it does not have to be metal.)
Anyway, here is the link to the first video:
http://www.youtube.com/watch?v=cgUwjF1RuBw
This film will change the way you look at our money and clear up a bunch of questions you may have.
The last video (#23) has a two step solution. If you want a link to the group that put out this information, please visit my Conservative Portal, http://www.audacityofcommonsense.com/rightchange
This site is in its infancy, so please feel free to comment on it including what you would like to see added.
[Reply]
it took me 20 minutes to vote as i voted for Dr Paul as a writein for all but the few offices that i thought i could effect.
if i had thought that Obama could have won my state of WV i would have voted for him as i consider him the lesser of the two evils that where realistic. Macains role in the keading 5 was all i needed to know about him to have chosen even four more years of bush over him. Also i support obamas stance on the legalisation of drugs as i willnot even get into how much worse the situation is made by leaving such things up to the criminal element or that the 9th amendment garentees the right to use pot and purchase a opium of a consistancy that would eliminate 99.9% of overdose deaths and a good portion(id guess 90%+) of crimes to raise funds for an expensive street drug.
That said what i really wanted to say was that i am doing everything in my power to raise awarness and have started my push for Dr paul in 2012. i was just wondering if Dr paul had any thoughts on the RFID chips, Amero, FEMA Consintration camps numbering in the thousands, NAU, FEMAs Role in mashall law enforcment that can now be used in economic situations or the undenyable video proof(100% controled V implosion) of building 7 showing that the WTC was an inside job(building 7 being the true target)? I only ask because i think these things are the reason that things are intentionaly not being fixed.
[Reply]
[...] if we got here by spending too much money, borrowing too much money, inflating too much money, the Federal Reserve too involved in central economic planning through manipulation of interest rates, and the Congress [...]
Surprisingly what I see missing from these comments is a very simple solution that Ron Paul heartily endorses and that is to reduce spending. One can come up with whatever tax scheme appears perfect but if you skip the primary step of spending reduction you have done nothing to produce lasting change.
Step One- Reduce government spending by:
1. Returning to a Constitutionally limited government.
That means reducing our interventionist presence overseas which includes two unconstitutional wars and occupation is some form or another in 130 countries. That move alone will save hundreds of billions a year up to $1 Trillion.
This also means cut unconstitutional Departments like The Dept. of Education (began under Reagan); The Department of Energy; The SEC; The Department of Transportation; The FCC; The FDA, The EPA and others. All of these functions can be handled at the State and local levels much more effectively than at the Federal level and with less cost. Let the free market and concerned citizens operate and vote freely with their dollars and we will accomplish more at less cost to our society. It has been done before in our nation and worked quite effectively and it can be done again.
2. Abolish the Federal Reserve
The Federal Reserve is nothing more than a cartel of private financial Corporations who are running our economy through absolute control of our money supply. The current Federal Reserve Note is nothing more than a note of debt backed by nothing with no intrinsic value. Alexander Hamilton, our first Secretary of the Treasury stated:
“[t]here is scarcely any point, in the economy of national affairs, of greater moment than the uniform preservation of the intrinsic value of the money unit. On this the security and steady value of property essentially depend”.
Currently, our currency has no intrinsic value. Our dollar has been reduced to a political abstraction which has enabled the government through the Federal Reserve to engage in limitless debasement of our currency. The pseudo currency that contains no fixed or redeemable value can be reduced in value infinitely until it has no value at all. This is what has caused currencies to collapse such as what happened in Germany after WWI to the reichsmark. (See Edwin Vieira Jr.’s pdf available on his website http://edwinvieira.com/ entitled “What is a Dollar?” for more Constitutionally based facts on this issue.)
So, if you choose not to base the currency on gold and/or silver something of value must be chosen or it will continue to open the door to currency debasement through inflation. Currency without intrinsic value will ultimately end in collapse.
Of course, there is much more that should be done but these two steps alone would make an enormous difference in the quality of our economy and our personal well being including our Constitutionally based natural rights and freedoms.
[Reply]
Little magic elves or whoever didn’t give me any money, or anyone else personally in that matter.
[Reply]
If all money is debt, and all debt bears interest, there can be no long term inflation if everyone pays back their loans. What’s even worse is that if that is taken to the ultimate conclusion, all money would disappear, because due to interest charges there can never be enough of it to pay off all the debt.
The only way for the system to prevail is with more and more inflation, printing more money to pay back current loans.
So, inflation is necessary. Without it, the system as it is set up would simply collapse and all money would disappear.
[Reply]
[...] the financial segment, and they both endorse the monetary system. They don’t really challenge the Federal Reserve. But what has to be challenged is this principal of fractional reserve banking where debt is [...]
[...] eight years and it got us into the trouble. So all this plan of more government stimulus and more inflation, it’s absolutely the wrong way to go. We’re doing exactly what we did in the 1930s. So we are [...]
[...] out that it was too much government from my viewpoint, too much spending, too much debt, too much inflation by the Federal Reserve, too much interference in the marketplace, too much price fixing of interest [...]
Ron Paul is 100% correct. I’d just like to make one simple point here, that a few of you on this blog are not getting. The fact is that the Federal Reserve is a “PRIVATE” bank. Congress has NO control over it. So wake up folks, our money supply is being controlled by criminal bankers. When you realize that is the case, then you will stop asking how we solve the problem. It’s too simple. Ron made it clear…ELIMINATE the Federal Reserve (and therefore the criminal bankers in control) and have the government put us back on the gold standard. End of story.
[Reply]
Dr. Ron Paul has extraordinary ideas towards small government and true conservatism, especially concerning the economy and American foreign policy. However, if this movement wants to act pragmatically, we have to look for a new face soon, a new leader, endorsed by Dr. Ron Paul, to carry out these ideas.
I say this because I care deeply about the future of the USA and agree with most of Ron Paul’s policies. However, his political career is sadly limited to his age, and this matters much on a political campaign.
The only thing that is missing to our movement is the presence of a consistent political strategy (strategist) to create real chances for a presidential candidacy.
[Reply]
[...] to introduce legislation to restore financial stability to America’s economy by abolishing the Federal Reserve. Since the creation of the Federal Reserve, middle and working-class [...]
omg I had no idea this guy spoke out against the Fed. I can’t believe such a candidate runs for office with relative popularity. The Federal Reserve, like our Bank of Canada, needs to be abolished. The shareholders of The Fed are siphoning our wealth through the mechanism of interest.
Ron Paul needs financial backing. Where’s George Soros?
Free us! Free us!
[Reply]
Although it is popularly believed that we the people have no control over the Federal Reserve, this is simply not true. We established it in the first place, so therefore we should be able to revamp it or abolish it. The problem is, how do we replace it? Our system is based on securities written against appropriations, therefore, “national debt” rises, every time Congress appropriates money. It all goes over to the Federal Financing Bank, where securities, called Public Debt Securities, are written and sold at interest against these appropriations. Check it out for yourself, if you can understand it. See Title 12 ss 2282 et seq. For instance, when my FICA benefits are paid, then that all goes into the “National Institute for Health Gift Fund.” From there, the Secretary of HHS determines what amounts need to be paid to beneficiaries and that amount is left in the account. The rest goes over to the Secretary of the Treasury for “sale” to the public (banks) in the form of Public Debt Securities. Maybe we could stop doing this, since each time this created money goes over to the Fed, it gains interest. Who buys these securities? Try the executive and legislative branch of government through the “Office of Thrift Supervision.” This is the Office which oversees the Federal Employees Savings accounts, which are matched by the public, again causing more inflation. The interesting thing is that every six months as a Federal Employee, I can choose whether I want my money left in Public Debt Securities, or invested in common stock. See Title 5 USC ss 8438, et seq. Think of how this Office of our Government (which used to be the Federal Home Loan Bank) can control the stock market in this way. We have our eyes closed and our pocketbooks open when it comes to our money and how it is manipulated by the very people who set it up. The Native American elders once said, the problem with Americans is that most of them feel powerless. We may have problems, but we should never feel powerless.
[Reply]
Rob replies:
February 16th, 2009 at 11:11 am
The Government can buy back the Federal Reserve for wht it cost to establish it:$450,000…The government could then disestablish it and Congress could retain its mandated duty of being the only entity to control the coining(creating) and value of money.
[Reply]
Right on, I agree, the government can buy back the Federal Reserve Banks, and they can also stop putting so much in their retirement accounts and manipulating the stock market. Without a system which will take us through the interim, we are standing here like deer in the headlights, waiting for a blow or death. I believe the figure has been popularly given at a little over three million which is the amount of debt we as a government owed the Fed when we passed T.12 sec. 95 (b) of the Act of Congress which placed the Treasury at the backing of the Fed instead of the Fed. Reserve Board. The question is, what is the Public Debt, and who owns the public debt securities we have been spending like matchsticks? The government owns them through the many accounts like retirement accounts, bank securities, etc. If they become worthless, then who is bankrupt? Not we the people, but the employees of the government. I don’t believe they will vote to bankrupt themselves. We have been bankrupt since 1933. What FDR did then, we are paying for now by swabbing the deck on the Titanic. What does the Fed owe other countries? Well that is their problem.
[Reply]
Amazing what this article says about a once off increase in everybody’s bank account being a very short lived benefit, then a lasting bad effect.
This sounds very similar to what the Australian Government is planning to do soon by giving out a “stimulus” $900 each to almost everyone in the country.
[Reply]
There is one thing we can do and still keep constitutional money. We can issue currency against all the mortgages we just bailed out instead of the banks issuing electronic money against it. Why did we bail them out at the cost of the public instead of bailing out the individual mortgage holder who is about to be foreclosed? Nothing makes sense of what we are doing now except that they are bailing themselves out with Public Debt. If the Office of Thrift Superivision was audited, I bet we would find a lot of money there that could be used to stimulate the economy. What if we made a law that the Federal employees had to take at least half of their retirement and invest in home loans and other economic stimulus plans such as industry. What if we repealed NAFTA along with this and put our people back to work. What if we made it a law that all Federal Purchases had to be from domestic sources? The government could do a lot better with some fresh ideas. The public debt belongs to us, we should be able to use it for the economy and the benefit of all the people.
[Reply]
[...] Madame Speaker, I rise to introduce the Federal Reserve Transparency Act. Throughout its nearly 100-year history, the Federal [...]
[...] rise to introduce the Federal Reserve Transparency Act. Throughout its nearly 100-year history, the Federal [...]
[...] This week, Congress and the administration once again showed their lack of economic understanding, as they ramped up spending to record levels. On the surface, maybe it does look to some like the economic crisis is a liquidity problem, that the economy is in trouble because money is not changing hands at the pace it once did in the boom years. They believe that to get back to a booming economy money needs to start changing hands again – and the quickest way to do this is for the federal government to massively expand spending to pump new money into the system. If this is the extent of their understanding, no wonder they call for spending, taxing, bailouts and inflation. [...]
Mr. Paul, WHY in GOD’s name are you focused spending MORE of my hard earned money on a Celebration for Former President Ronald Reagan? This is just mind boggling that during our country’s crisis and with millions of Americans out of a job and their homes YOU want give a Celebration party? Are you out of your freaking mind!!!! Ronald Reagan is dead, God rest his soul, why can’t we just let him rest in peach and STOP using him as the “poster child” whenever it’s convenient for the GOP to SPEND MILLIONS IN TAXPAYER DOLLARS!!!
ENOUGH WITH THIS FOOLISHNESS, WE DON’T WANT A CELEBRATION, WE DON’T NEED A CELEBRATION!!!
This is exactly WHY the GOP continues to be clueless, you all want to throw a “flashing bash” at the expense of the American people.
[Reply]
The only problem I see with converting back to a gold standard is that there is about 15 trillion american dollors out there and only enough gold to back about 70 billion of that money. That would place the dollor value at about a penny on the dollor.
The money elves have given so much money out that there is no turning back without a complete change of thinking.
[Reply]
Dave replies:
March 16th, 2009 at 1:45 pm
This is the misconception of gold I don’t understand. 1 dollar = ??? gold. An ounce? A boullion? A troy ounce?
The whole idea is that you are saying some quantifiable amount of paper money equals some quanity of gold. If at some point if at some point we need more dollars in circulation then we either cause inflation and print more money therefore changing the ratio of dollars to gold, or we trade for gold and then print more money to keep the ratio the same.
The whole point of a gold standard, or any other rare commodity standard, is that you can’t do math magic to mask true inflation or deflation. By making this a set value, vs a floating point calculation based on a number that is also easily manipulated and about 10-20 calculations from base information, the people can easily understand the wealth they are losing and then regulate the government.
If the government inflates by 5% I should demand my employer pay me 5% more because otherwise I am taking a pay cut. If the government deflates by 10% my employer could demand to cut my pay accordingly because my standard of living would remain unchanged.
The visibility and ease of understanding is what a gold standard gives you. Government accountability is ultimately what the populous gains by this type of currency. Otherwise we are doomed to let those at the top fool everyone into losing all of the money they save, while they benefit because of the ability to play the game to win.
Oh yeah the other thing you gain is the ability to get your gold for your money immediately and opt out of the system. This also forces accountability to the government.
[Reply]
John Stuart Mill replies:
March 17th, 2009 at 5:42 pm
It seems like the thing people like most about gold is that it is free from manipulation. There is something honest about using a standard whose supply has been pre-set by nature.
[Reply]
Yes, Dorothy, you aren’t in Kansas anymore. It appears there is no turning back, but is there hope? The Gold Standard act was never actually repealed. It was taken over by Special Drawing Rights which allow the Federal Reserve to issue currency on Draws from the IMF and Enemy properties. We could start there, repeal the Special Drawing Rights Act and force the fed back onto a gold and silver standard, after the audit. One step at a time. Write to your Congressman every day until he supports this bill.
[Reply]
I don’t think the gold is the answer. But what do I know, anyway, right? Gold does not measure technological and scientific potential and resources of a country. Going to gold is going back in time to the natural trade ages.
On the other hand, existing system is not sound, as it creates more money and concentrate more money in the same hands (that portion of the article I do agree with). The interest rate create more demand for printing more money (that portion of this article I do not agree with – I am against the interest rates at all, the system with interest rates is asking for printing more money).
The main question is what should be offered instead of the current monetary system.
It is well-known, that the technology is the engine behind the prosperity, security and well-being of any state. So, if there was a way to measure a technological potential of any given country, it could lead to creating a “monetary” value, that could be then broken down to the people of that country. Then the development of the nation would be steered into the right direction.
Just a thought.
[Reply]
Dave replies:
March 17th, 2009 at 8:09 pm
2 issues every country sets their own standard for “technology” and what is in and what is out is so subjective it defies standardization even internally to each nation. Putting up an international body to do so would be a way of giving up soveriegnty, so that’s out.
All in all its pretty much the same thing we have now.
[Reply]
Nate Y replies:
March 17th, 2009 at 8:37 pm
The system advocated by Ron Paul (and Austrians in general) is privately issued currencies. That is, competing currencies. Let the market decide what is best used as money. What commodity/basked to commodities will be selected as the preferred currency? Who knows? But it will likely not be paper backed by nothing except government promises.
[Reply]
[...] no strings attached, we give out hundreds of billions of dollars, and we totally ignore what the Federal Reserve does, by it issuing literally trillions of dollars, and yet this is the emergency [...]
[...] At his web site, Paul defines “fiat money” as “money that can be inflated or increased at the push of a button at the say-so of a powerful person or organization.” He contends that nowadays “most dollars are just blimps [should this be sic? maybe not!] on a computer screen and it’s extremely easy for the Federal Reserve to create money out of thin air whenever they want to.” [...]
[...] If you called before and if your representative is not listed below, follow up and ask them to take a position either way so we know where they stand on the issue of bringing transparency to the Federal Reserve. [...]
[...] Federal Reserve System creates and controls our money, your money. In recent months, private demands under the [...]
I received this e-mail…and thought that Ron Paul and all of his supporters would find it to be of interest:
REDUCE THE CONGRESS!
When a company falls on difficult times, one of the things that seems
to happen is they reduce their staff and workers. The remaining workers
must find ways to continue to do a good job or risk that their job
would be eliminated as well. Wall street, and the media normally congratulate the CEO for making this type of “tough decision”, and his board of directors gives
him a big bonus.
Our government should not be immune from similar risks.
Therefore: Reduce the House of Representatives from the current 435 members to
218 members. Reduce Senate members from 100 to 50 (one per State). Then, reduce their staff by 25%.
Accomplish this over the next 8 years (two steps/two elections) and of course this would require some redistricting.
Some Yearly Monetary Gains Include:
$44,108,400 for elimination of base pay for congress. (267 members X $165,200 /member/ yr.)
$97,175,000 for elimination of their staff. (estimate $1.3 Million in
staff per each member of the House, and $3Million in staff per each member of the
Senate every year)
$240,294 for the reduction in remaining staff by 25%.
$7,500,000,000 reduction in pork barrel ear-marks each year. (those
members whose jobs are gone.. Current estimates for total government pork earmarks are at $15 Billion/yr)
The remaining representatives would need to work smarter and improve efficiencies. It might even be in their best interests to work together for the good of our country!
We may also expect that smaller committees might lead to a more efficient resolution of issues as well. It might even be easier to keep track of what your representative is doing.
Congress has more tools available to do their jobs than it had back in 1911 when the current number of representatives was established. (telephone, computers,
cell phones to name a few)
Note: Congress did not hesitate to head home when it was a holiday, when the nation needed a real fix to the economic problems. Also, we have 3 senators that have not been doing their jobs for the past 18+ months (on the campaign trail) and still they all have been accepting full pay. These facts alone support a reduction in senators &
congress.
Summary of opportunity:
$ 44,108,400 reduction of congress members.
$282,100, 000 for elimination of the reduced house member staff.
$150,000,000 for elimination of reduced senate member staff.
$59,675,000 for 25% reduction of staff for remaining hou se members.
$37,500,000 for 25% reduction of staff for remaining senate members.
$7,500,000,000 reduction in pork added to bills by the reduction of congress members.
$8,073,383,400 per year, estimated total savings. (that’s 8-BILLION just to start!)
Big business does these types of cuts all the time.If Congresspersons were required to serve 20, 25 or 30 years (like everyone else) in order to collect retirement benefits, tax payers could save a bundle. Now they get full retirement after serving only ONE term. (Actually, after they sit down.)
A VERY CONCERNED AMERICAN
[Reply]
[...] If you called before and if your representative is not listed below, follow up and ask them to take a position either way so we know where they stand on the issue of bringing transparency to the Federal Reserve. [...]
You want the truth about Oil and Money check this read out!
Book and video’s ………by http://www.reformation.org/energy-non-crisis.html
The Energy Non-Crisis is available for sale here
Hear Reverend Lindsey Williams tell the real TRUTH about Alaskan oil and gas on YouTube.
Lindsey Williams
About the Author
Lindsey Williams, who has been an ordained Baptist minister for 28 years, went to Alaska in 1971 as a missionary. The Trans-Alaska oil pipeline began its construction phase in 1974, and because of Mr. Williams’ love for his country and concern for the spiritual welfare of the “pipeliners,” he volunteered to serve as Chaplain on the pipeline, with the subsequent full support of the Alyeska Pipeline Company.
[Reply]
Sean replies:
April 11th, 2009 at 8:12 pm
Here is the truth about oil. Actual data, not some no name senator back in the early eighties…
http://en.wikipedia.org/wiki/Peak_oil
[Reply]
Jan replies:
April 11th, 2009 at 10:26 pm
Wikipedia is not something I trust for the facts..especially the facts posted on oil…that is simply not true. Sean did you go read the book online or watch the video’s? This man kept it secret until recently, out of fear for his life. Now, he is old, and doesn’t care as much about his life as he does about giving the truth. That Senator endorses him , cuz there is also a big find of oil in Colorado and the Dakota’s… continue to seek the truth about OIL and The MONEY GAME, Wars, and depopulation and world poverty and world tax.. How there is a NWO controlling congress and the President …..they want to depopulate the world down to 100 million people. And they want to save the oil, our oil, to have and edge over everyone that still remains on earth …
There is much to learn Sean….get busy. and then get out there and fight for the people..or are you one of the “family”?
[Reply]
Sean replies:
April 11th, 2009 at 11:34 pm
All that data has very reliable sources.. I’m not sure if you realize how much oil the world consumes., Its around 50 million barrels a day growing 2% a year. There can only be so much oil out there because reservoirs dry up.. I’m sorry but I do not believe in builderburg conspiracy theories. Alex Jones is just a ramblin man.. I don’t understand what exactly you want me to do. I wont fight against something unless I believe its real. I believe more in magic bunny rabbits that lay colored eggs, than some freemason secret society that has the capability to take our sovereignty.
[Reply]
Sean replies:
April 11th, 2009 at 11:40 pm
Here is some IEA information.
“Peak oil as a concept applies globally, but it is based on the summation of individual nations experiencing peak oil. In State of the World 2005, Worldwatch Institute observes that oil production is in decline in 33 of the 48 largest oil-producing countries.[138] Other countries have also passed their individual oil production peaks.
The following list shows significant oil-producing nations and their approximate peak oil production years, organized by year.[139]
Japan: 1932 (assumed; source does not specify)
Germany: 1966
Libya: 1970
Venezuela: 1970
USA: 1970[140]
Iran: 1974
Nigeria: 1979
Tobago: 1981[141]
Egypt: 1987[142]
Russia: an artificial peak occurred in 1987 shortly before the Collapse of the Soviet Union, but production subsequently recovered, making Russia the second largest oil exporter in the world. Figures from early 2008, statements by officials, and analysis suggest that production may have peaked in 2006/2007.[143][144] Lukoil vice president Leonid Fedun has said $1 trillion would have to be spent on developing new reserves if current production levels were to be maintained.[145]
France: 1988
Indonesia: 1991[146]
Syria: 1996 [147]
India: 1997
New Zealand: 1997[148]
UK: 1999
Argentina: 1999 (BP statistical workbook 2007)
Colombia: 1999 (BP statistical workbook 2007)
Norway: 2000[149]
Oman: 2000[150]
Mexico: 2004[151]
Australia: 2000 (BP statistical workbook 2007)
Peak oil production has not been reached in the following nations (these numbers are estimates and subject to revision):[152]
Iraq: 2018
Kuwait: 2013
Saudi Arabia: 2014
In addition, the most recent International Energy Agency and US Energy Information Administration production data show record and rising production in Canada and China.”
well!
This company official said to me,”Chaplain, that great pool of oil is probably as big as the Prudhoe oil field, it has been proven, drilled into, and tested—we know what is there and we know the amount that is there, but the government has ordered us not to produce that well, or reveal any information as to what is at Gull Island.”
I could hardly believe what I heard that day. I walked out of the oil company official’s office very perturbed, because again we could be lied to, the American people would be deceived again—the truth would not be told. As I walked out of that office I realized that I was only one of about six men alive who would even know the truth about Gull Island, or would ever even see the technical data. I was astonished that day because of this restriction on releasing data about the production from beneath a small island out in the Arctic Ocean. This could end the oil crisis, but I had come to the conclusion in my mind, with no doubt whatsoever, that the Federal government would never want that oil produced.
It was not the oil companies that ordered the rig removed and the well capped. It was not the oil companies that said, “We cannot go beyond our 100-mile boundary. “It was not the oil companies that said, “We will not tell the American people the truth.” Rather, it was your Federal and State government … and my Federal and State government—the officials elected by us to represent us for our welfare.
Gull Island was capped and the rig was removed, and the truth has never been told … until now!
Well, here is a statistic that should silence those false claims and blow the lid off of that phony excuse of too much sulphur in the Alaskan crude. An August 11, 1980, analysis of the Prudhoe Bay crude oil, which is flowing in the Trans-Alaska Oil Pipeline, reads as follows:
Sulphur content – 0.9%
Flash point of the oil – 35 °F
Wax content – 6%
Asphalt content – 2%
Crude oil freeze temperature (better known as pour point) – 15 °F
The sulphur content of the Prudhoe Bay Alaskan oil is low in comparison to oil from other sources in the U.S., as well as many foreign oils.
The Alaskan Prudhoe Bay oil can be refined by any major refinery in America without damage to the ecology.
This means, then, that the widely publicized excuse of too high a sulphur content is simply not true. Therefore, it is just one more link in the long chain of falsehoods that we are asked to believe as Americans.
An energy crisis??????
So what is the conclusion? It is rather startling, isn’t it? It is the conclusion I came to after a number of years of examining the facts and putting pieces together. We are being sold down the river and we’d better put a stop to it before it’s too late. As Mr. X said to me at Prudhoe Bay some years ago, “There is no energy crisis. There has never been an energy crisis. There will never be an energy crisis, but rather it is the purpose of the ‘powers that be’ to produce an energy crisis. Because, you see, Chaplain, there is as much crude oil on the North Slope of Alaska as in all of Saudi Arabia. [Not to mention all the rest of the places they have discovered oil and just capped it off!] If free enterprise were allowed to produce that oil, America could be independent for energy within five years time.”
“Not only that,” Mr. X related, “The United States could be financially free of the rest of the world within five years, if only private enterprise were allowed to develop natural resources—the energy … crude oil and natural gas—that are found on the North Slope of Alaska today.”
[Reply]
Sean replies:
April 12th, 2009 at 12:25 am
Well i’ve had nice conversations with the Energy Professor at SMU who will back up everything I say… Why do you think the united states would hold off on drilling there? They could tax the hell out of it, just like the did during WW2. That would be the largest profit the government could ever make, but all oil fields dry up.. That paper is old and irrelevant, the population has almost doubled since it has been written.. Anyways that last comment was wrong because it takes 10 years to process oil.
[Reply]
It was all capped because of OPEC…….Saudi was given the Oil supply for the world’s use in exchange for paying off America’s debt with American dollars………
[Reply]
Monday, May 1st, 2006
The US Government’s Secret Colorado Oil Discovery
Rense
Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the largest untapped oil reserve in the world – more than 2 TRILLION barrels. On August 8, 2005 President Bush mandated its extraction. Three companies have been chosen to lead the way. Test drilling has already begun
Dear Reader,
Five months ago, the U.S. Energy Department announced the results of a land survey
It was conducted to determine the official amount of oil a thousand feet deep in the Rocky Mountains
They reported this stunning news:
We have more oil inside our borders, than all the other proven reserves on earth.
Here are the official estimates:
* 8-times as much oil as Saudi Arabia
* 18-times as much oil as Iraq
* 21-times as much oil as Kuwait
* 22-times as much oil as Iran
* 500-times as much oil as Yemen
And it’s all right here in the Western United States.
James Bartis, lead researcher with the study says, “We’ve got more oil in this very compact area than the entire Middle East.”
More than 2 TRILLION barrels. Untapped.
“That’s more than all the proven oil reserves of crude oil in the world today,” reports The Denver Post.
When asked about America’s least-publicized oil supply, Utah Senator Orrin Hatch said:
“The amounts of oil are staggering. Who would have guessed that in just Colorado and Utah, there is more recoverable oil than in the Middle East?”
Here’s the kicker
The U.S. government already owns the land. It’s been right there under our noses the whole time.
In fact, the government’s appointed a small group of companies to begin the drilling.
Test drilling has already begun.
And the profit forecasts are ridiculous. According to the RAND Corporation (a public-policy think tank for the government), this small region can produce:
Three million barrels of oil per day That translates into more than $20 BILLION a year.
These are the conservative estimates. The U.S. Energy Dept. estimates an eventual output of 10 million barrels of oil per day. At that rate, the money flow would be even greater.
I’ve written this letter to tell you everything I’ve learned about this rarely publicized oil reserve who’s drilling it and how to get a piece of the world’s biggest, untapped oil supply – before it’s too late.
Here’s the full story
The Next American Oil Boom
There’s a new source of oil in the American West.
Today, it sits idle – untapped – inside more than 16,000 square miles of rock and sand.
Geologists call what lies in this region, oil shale.
What is oil shale?
At first glance, oil shale looks like an ordinary black rock.
It feels grainy to the touch and greasy. You see, what’s inside oil shale has huge governments, Big Oil, venture capitalists, and even everyday investors scrambling to stake a claim.
Oil shale – when heated – oozes bubbling crude.
This precious resource is rare – found only in a few select countries. Places like China, Brazil, Estonia, Morocco, and Australia.
But the real story is how much untapped oil shale lies beneath U.S. soil. As the chart to the right indicates, there’s 4-times more oil shale in the U.S. than in all other countries combined.
Over the past 125 years, oil shale has been the secret oil source for a handful of nations. Specifically, those fortunate enough to have it
* China’s been using oil shale since 1929. Today, China is the largest producer of oil from oil shale. It plans to double the daily rate of production soon.
* Estonia is an oil shale dependent economy. Over 90% of the country’s electricity is fueled by shale oil. In fact, electricity run on oil shale is a chief export.
* In 1991, Brazil built the world’s largest oil shale facility. They’ve already produced more than 1.5 MILLION tons of oil to make high quality transportation fuels.
* Jordan, Morocco, and Australia have recently announced plans to utilize their oil shale resources. All 3 governments are currently working to build oil shale facilities.
But all these countries’ oil shale resources pale in comparison to the U.S. supply. As you can see from the table to the right, the United States dominates the oil shale market – with over 72% of the world’s oil shale resources.
Our gargantuan supply of oil lies beneath an area called the Green River Formation – a barren stretch of land covering portions of Colorado, Utah, and Wyoming.
World-renowned geologist Walter Youngquist calls the oil beneath the Green River Formation, “a national treasure.”
Congress calls this area simply, “the next Saudi Arabia.”
It’s easy to see why
This region holds the largest known oil reserve on the planet
Colorado’s Oil Lands – Restricted for 76 Years, Now Open for Drilling
There are over 16,000 square miles of oil shale in the Green River formation…
Each acre holds 2 million barrels of oil – it’s the most concentrated energy source on earth, according to the Energy Department.
The federal government owns 80% of this oil-rich land.
In fact, the government placed protective legislation on this land in 1930, forbidding anyone to touch it.
You see, the government always knew this land was saturated with oil – but getting it out has always been expensive.
Buying oil from foreign countries was always the cheaper bet. It has been for the past 80 years.
Wisely, the government kept the land around for a “rainy day”, protecting it with 1930s legislation.
I’m sure you’re aware of today’s situation at the gas pump. Buying oil from foreign countries has gotten out of hand. The price of oil is sky-high. It’s way too expensive to keep buying foreign oil. In other words, the “rainy day” has finally arrived.
The timing couldn’t be more perfect. Oil shale technologies have begun to advance  drastically.
Companies are coming up with ways to extract oil from the Green River Formation very cheaply.
For example, one Utah-based company says it can extract the oil for as little as $10 a barrel. In fact dozens of companies have stepped forward with similar claims. With oil prices approaching $70 a barrel  these are pretty significant breakthroughs.
That’s all the government needed to hear.
On August 8, 2005, President Bush signed into law, a mandate lifting the protective legislation on the Green River Formation.
This mandate is called The Energy Policy Act of 2005. It calls for the opening phases of oil extraction in the Green River Formation  the world’s most concentrated energy source.
We’re finally ready to tap the largest oil reserve on the planet
http://www.stansberryonline.com/OIL/20060405-OIL-COL.asp?pcode=EOILG422&alias=200604OIL
[Reply]
North Dakota oil discovery called biggest in U.S.
Posted Apr 10 2008, 06:53 PM by Jon Markman
Rating: [Poor] [Poor] [Fair] [Fair] [Average] [Average] [Good] [Good] [Excellent] [Excellent]
Filed under: investing, Energy, oil, Jon Markman
Watch out, Texas! Get back California, Louisiana and Alaska! North Dakota and Montana are on track to knock all of you off your high horses as the oil capital of the United States.
According to a government report published today that has stunned the energy biz, a thin layer of rock known as the Bakken Shale, located a couple of miles under the Badlands, holds up 4.3 billion barrels of recoverable oil, making it the single largest oil reservoir that federal scientists have ever assessed.
At today’s price of $110 per barrel, that puts the value at $475 billion, give or take a few bill, or more than enough to make people think ND stands for North Dallas. Or maybe that’s New Dhabi.
The U.S. Geological Survey only assessed the Bakken Shale in U.S. boundaries, so the full extent of the find, which stretches north into the Canadian provinces of Saskatchewan and Manitoba, will ultimately be larger. Already the estimate for “technically recoverable” oil – or that which is exploitable using current technology — is 25 times higher than the last time the USGS surveyed the area, in 1995.
Around 105 million barrels of oil had been produced from the Bakken through the end of 2007, so the idea that energy producers may get 40 times that amount has brought a lot of attention to the area’s top drillers and leaseholders. Investors pushed stocks like EOG Resources and Continental Resources to all-time highs in the past two weeks in anticipation of the report’s publication. See my column today, “Dakota Oil: Persia on the Plains,” for more investment angles.
The USGS said in in its press release that its new Bakken estimate is larger than all of its other oil assessments of the lower 48 states and is the largest “continuous” oil accumulation it has ever assessed. It said a “continuous” oil accumulation means that the oil resource is dispersed throughout a geologic formation rather than existing as discrete, localized occurrences. The next largest continuous oil accumulation in the U.S. is in the Austin Chalk of Texas and Louisiana, with an estimate of 1 billion barrels of technically recoverable oil.
Government geologists said they worked with North Dakota Geological Survey, a number of petroleum industry companies and independents, universities and other experts on the project. To hear a podcast of the USGS scientists Brenda Pierce and Rich Pollastro discussing their study, click here.
[Reply]
Sean replies:
April 12th, 2009 at 12:33 am
We would use the oil if there was enough to last forever, but ALL oil field dry up in a matter of months to years. There is no “special reserve” that holds a godly amount of crude.
[Reply]
Facts about Oil and Gas in Michigan
Number of Michigan Counties with Oil and/or Gas Production
· 63 of 83 in the Lower Peninsula
Michigan’s Estimated Average Daily Production
· 22,677 Barrels of Oil
· 790 Million Cubic Feet of Gas (MMCFG)
Michigan’s Annual Hydrocarbon Production (2000 Data)
· 8,277,840 Barrels of Oil (4% of Demand)
· 289 Billion Cubic Feet of Gas
Total Oil and Gas Production Since 1920
· 1.34 Billion Barrels of Oil
· 5.9 Trillion Cubic Feet of Gas
Total Number of Wells Currently Operating in Michigan
· 4,673 Oil Wells
· 6,865 Gas Wells
Top Crude Oil Producing Counties
· Hillsdale – 123 Million Barrels of Oil
· Manistee – 102 Million Barrels of Oil
· Otsego – 100 Million Barrels of Oil
· Midland – 84 Million Barrels of Oil
Top Natural Gas Producing Counties
· Otsego – 860 Billion Cubic Feet
· Manistee – 600 Billion Cubic Feet
· Grand Traverse – 548 Billion Cubic Feet
· Kalkaska – 507 Billion Cubic Feet
Michigan’s Oil & Gas Industry and the Economy
Michigan’s underground industry significantly contributes to the state’s economy in a variety of ways:
· Providing more than 10,000 industry-related jobs.
· Paying 14,000 private mineral owners more than $80 million in royalties annually.
· Contributing nearly $1 billion in oil and gas income (royalties, rentals, lease bonuses) to the State of Michigan since 1927.
· Paying more than $40 million in severance taxes and oil and gas fees to the State of Michigan annually.
· Contributing millions of dollars in local property taxes on oil and gas wells, pipelines and surface facilities each year.
· Providing about $7 million in privilege fees to the state annually. These fees underwrite the activities of the Michigan Department of Environmental Quality’s Geological Survey Division, which is responsible for monitoring and enforcing industry compliance with state and federal laws.
· Producing a total of $17.6 billion in Michigan crude oil and natural gas since 1925.
· Generating a total value of $865 million in Michigan crude oil and natural gas production annually in recent years. This, in turn, results in an additional $1.1 billion in business activity in Michigan, making oil and gas production a $2 billion industry in Michigan.
· Michigan, with the largest underground working storage capacity of any state, is a natural gas storehouse for the Northeastern United States with 600 billion cubic feet of storage capacity.
· Michigan produces about 25 percent of the natural gas in the state uses.
Michigan’s Oil & Gas Industry at a Glance
Crude oil and natural gas have been found in 63 counties in Michigan’s Lower Peninsula.
First Commercial Well Drilled: Saginaw Country, 1925.
Number of Wells: More than 47,300 wells drilled since 1925. 14,000 active oil and gas producing wells.
Well Depth: Ranges from a few hundred feet to approximately 12,000 feet
Biggest Production Year: Oil production reached 38.5 million barrels in
1979; gas production reached 305 Billion Cubic Feet (BCF) in 1997.
Barrels of Oil Produced: Currently producing 10 million annually; 1 billion since 1925
Cubic Feet of Natural Gas Produced: Currently producing more than 300 billion annually; more than 4 trillion since 1925.
Largest Mineral Rights Owner: State of Michigan, with 5.9 million mineral acres.
Michigan’s Oil and Gas Industry and the Environment
Michigan’s natural resources are a great source of pride to its residents. To preserve and protect these resources, the oil and gas industry works hard to minimize its impact on the environment. However, getting oil and gas out of the ground and delivered to customers sometimes means an inconvenience for a short period of time. State-of-the-art technology has made current operations quieter, cleaner and more efficient than a decade ago and improvements continue to be made each year. Michigan’s oil and gas industry works to comply with industry regulations at all levels.
Federal
The Environmental Protection Agency stipulates specific rules and regulations for all industries, including the oil and gas industry. These areas of compliance include the Resource Conservation and Recovery Act (RCRA), the Clean Air Act, the Clean Water Act and the Comprehensive Environmental Response Compensations and Liability Act (CERCLA). The U.S. Environmental Protection Agency specifically regulates the disposal of production waste.
State
The Michigan oil and gas industry is directly regulated by the Michigan Department of Environmental Quality’s Geological Survey Division, the department of Natural Resource and the Michigan Public Service Commission. Specific rules regulating the oil and gas industry are found in Act 451 of the public Acts of 1994 as amended (Part 615 Supervisor of Wells and the Administrative Rules of 1996), highlights of which include:
Permitting & Construction. Regulations cover every aspect of our industry – permitting a well, well construction and completion, facility construction, production operations, noise abatement, pipelines and, finally, plugging a well and site restoration.
Waste. Almost all of the waste associated with oil and gas production is salt water which is commonly produced with the petroleum. The water, or brine, may contain high levels of non-hazardous chloride. Once water is separated from the petroleum, brine is re-injected into the ground) frequently into the zone from which it came, or deeper to protect fresh water) in a state- and U.S. EPA-approved Class II disposal well. Also, many country road commissions use excess brine for dust and ice control on gravel roads.
Hydrogen Sulfide (H2S). Also known as sour gas, hydrogen sulfide has a high content of sulfur and is a natural byproduct of many industries, including agriculture, salt, paper-making, sewage disposal, and oil and gas. The State of Michigan has stringent rules and regulations that specifically address the handing of hydrogen sulfide by the oil and gas industry.
Noise. Many new technologies and methodologies in noise abatement have been developed, and regulations have been updated, to make sure oil and gas operations are as quite as possible.
Uniform Regulatory Control
Because geological formations that produce oil and gas do not conform to surface boundary lines, and due to the highly specialized technical nature of the business, state rules and regulations cover all oil and gas activities. However, as a matter of policy, drilling permit applications are sent to township and country governments by the state for their input. The oil and gas industry also complies with a variety of local ordinances regarding pipeline rights of way, local surface facility zoning in established municipalities, and soil erosion and sedimentation control. In addition, the Michigan Department of Transportation, along with Michigan’s country road commissions, regulate the movement of heavy equipment.
The Michigan Natural Resources Trust Fund:
Putting Michigan’s Oil and Gas Revenues to Good Use
Michigan was the first state in the nation to establish a land trust fund specifically funded by revenues generated from the oil and gas industry. The 1976 landmark legislation created what is now the Michigan Natural Resources Trust Fund. It was hailed by oil and gas industry leaders, environmentalists, conservationists and recreation groups as a significant investment in Michigan’s natural resource heritage.
This historic commitment to Michigan’s natural resources was spearheaded by the Michigan Oil And Gas Association (MOGA), the Michigan United Conservation Clubs (MUCC) and the Michigan Department of Natural Resources in the 1970s, and has drawn high praise form environmental industry leaders across the nation.
Although the original purpose of the Fund was solely to preserve and protect Michigan’s natural resources through buying and/or improving public parks and recreation lands, its financial success made it a target to help balance the state budget. During its first seven years, more than $100 million was diverted to the Michigan Economic Development Authority and other programs outside its original stated purpose.
In 1984 a statewide referendum called for an end to raids on the Fund. The referendum resulted in the Michigan Natural Resources Trust Fund amendment to the Michigan Constitution, specifying that funds be used to support land acquisition and facility development and improvement.
Since its inception, the Michigan Natural Resources Trust Fund has received more than $550 million from oil, gas and mineral easing and production on state lands. By law, a portion of these annual revenues, plus earned interest, must be used to acquire and improve Michigan’s public recreation facilities.
The Michigan Natural Resources Trust Fund has purchased more than 135,000 acres of ecologically significant or recreational land, including more than:
· 3,000 acres for the Pigeon River County State Forest;
· 14,000 acres for the state park system;
· 1,000 acres for boating access sites;
· 2,600 acres of water frontage for fishing access sites; and,
· 37,000 acres for state wildlife areas.
Michigan Geology
Gas and oil – chemical compounds of hydrogen and carbon – were formed deep beneath the ground millions of years ago as part of the earth’s evolution. Usually buried thousands of feet deep and locked in sandstone, limestone, or shale, oil and gas migrate up through the earth until they are trapped by no-permeable rock formations. Science and technology are required to identify and locate these rock formations and extract the oil and gas.
Some of the most significant oil and gas formations in Michigan, as shown in the accompanying maps, include:
1. Traverse, Dundee and Richfield Formations
Production from the Traverse, Dundee and Richfield Formations has been found mostly in the central part of Michigan’s Lower Peninsula. Exploration and production in these areas dominated the Michigan oil and gas industry in the 1930s and ’40s.
2. Trenton/ Black River Formation
The Albion-Scipio Filed of the Trenton/Black River Formation produces oil from a common source along a one-mile wide path in Calhoun, Jackson and Hillsdale Counties. The single largest field in the state, Albion-Scipio has produced 125 million barrels of oil since its discovery in 1957.
3. Niagaran Reef Trend
Discovered in 1968, the Niagaran Reef Trend (actually as series of fields) tripled Michigan’s oil production and quintupled our natural gas production in the 1970s. The Reef Trend is located along a 12- to 15-mile wide pate from Oceana Country, through Kalkaska and Otsego Counties, to Presque Isle County. It also runs through southern lower Michigan, with production fields in Eaton, Ingham, Livingston, Oakland, Calhoun, Macomb and St. Clair Counties.
4. Glenwood and Prairie du Chein Formations
The Glenwood and Prairie du Chein Formations are the deepest producing gas formations discovered to date in Michigan. The wells are drilled to depths reaching 11,500 feet. Exploration and development of these fields, which are located in the central part of Michigan’s Lower Peninsula, was heavy in the 1980s. Counties with significant Glenwood or Prairie du Chein discoveries include Newaygo, Bay, Osceola, Ogemaw and Arenac.
5. Antrim Shale Formation
Drilling and development of this formation, which began significantly in the late 1980s, has again doubled Michigan’s annual natural gas production. The Antrim formation, located throughout Michigan, is presently only commercially productive in the northern part of the State. To date, Antrim exploration and production has centered on Otsego, Montmorency, Alpena, Alcona, Oscoda, Antrim and Manistee Counties.
Information provided by the Michigan Oil and Gas Association
[Reply]
Sean replies:
April 12th, 2009 at 12:36 am
The United States produced enough oil to supply it’s own demand until 1970, (Youngquist paragraph 6). In that year the U.S. had to start importing oil to meet the demand. The oil production for 2000 is expected to average 5.8 million barrels per day of crude oil. The production for 1999 was 5.9 million barrels per day. After the oil price collapse of 1985/1986, U.S. oil production declined dramatically. Oil production in 2000 is down by 24% from 1985. However, according to the Energy Information Administration (EIA), oil production is expected to increase by 70,000 barrels per day, or 1.1% in 2001. There is little to no chance of discovering any significant new onshore oil fields in the U.S. There is a good possibility of discovering major deposits of oil offshore, but offshore drilling has been banned in many areas. There are several good prospects far offshore that are open to exploration, but these are usually in very deep waters, and are extremely expensive to drill. The U.S. produces 12% of the world’s oil, and and this production is concentrated onshore, and offshore along the Texas Louisiana Gulf Coast, extending inland through west Texas, Oklahoma, and eastern Kansas. There are also significant oil fields in Alaska along the central North Slope.
Oil Reserves
According to the EIA, the United States has 21 billion barrels of proved oil reserves as of January 1, 2000. The U.S. uses about 6.6 billion barrels per year. That is only enough oil to last the U.S. about three and a half years without importing oil from other countries. 84% of the reserves are concentrated in four states. Texas has 25%, both onshore, and offshore. Alaska has 24%, California has 21%, and Louisiana has 14% onshore, and offshore. Since 1990, U.S. oil reserves have dropped about 20%. New oil discoveries made in 1999 were made almost entirely in the Gulf of Mexico, and Alaska. (321 million barrels). All other discoveries were extensions of existing oil fields, or new reservoirs discovered in old fields. (404 million barrels).
[Reply]
Sean replies:
April 12th, 2009 at 12:37 am
http://blogs.ft.com/energy-source/files/2009/03/rs-500-us-oil-production1.jpg
[Reply]
Michigan’s growing oil boom
High gas prices fuel a surge in drilling and production
BY DAWSON BELL • FREE PRESS STAFF WRITER • July 18, 2008
LANSING — High gas prices may be hammering Michigan consumers and the overall economy. But in one sector — the state’s relatively inconspicuous, but well-established oil and gas industry — they’re contributing to a modest business boom.
State regulators and oil insiders interviewed in the last 10 days said interest in oil and gas leasing, drilling and production appears to be on the upswing in recent months, as crude oil topped $140 a barrel before falling below $130 a barrel Thursday.
A late-May auction of state-owned oil and gas mineral rights was one of the largest in years (149,000 acres) and completely sold out for the first time since 1981, said Julie Manson, a supervisor in the Department of Natural Resources’ lease management unit.
In October, the DNR plans to offer another 268,000 acres for lease, more than twice the usual limit, she said.
In the field, activity has increased across the Lower Peninsula, especially in northern Michigan’s Crawford and Kalkaska counties and in southern mid-Michigan, around Calhoun and Hillsdale counties. Drillers are even looking for oil in suburbs of Detroit.
“We’ve got rigs running around the clock,” said Tim Baker of West Bay Exploration Co., a Traverse City-based oil and gas company that has two wells about to go into production in Livonia.
Michigan ‘very attractive’
Experts credited the boomlet to high oil prices and advances in oil and gas exploration and drilling technology that have made finding and extracting resources more efficient. Pressure to develop domestic supplies has grown in response to high prices and concerns about overreliance on overseas oil producers, some of whom are hostile to the United States.
James Sullivan of Energy West Corp. in Denver said Michigan “has become very attractive … but anyplace in the United States that operators can get at the resource has become attractive.”
Michigan produced 5.8 million barrels of crude oil last year, 17th among the 50 states but dwarfed by big oil states such as Texas (386 million barrels) and Alaska (262 million barrels).
(2 of 2)
Energy West was among the purchasers at the auction, buying leases in Crawford, Kalkaska and Roscommon counties. West said the leases are still under evaluation, and no drilling is likely anytime soon.
Advertisement
Sullivan said the company probably would spend $15 million-$20 million during the next two years “before we know that what we have is commercially viable.” If it is, the payoff for West Energy and other investors could be huge, especially if oil prices remain high.
Production up, but it isn’t enough
Frank Mortl, the longtime head of the Michigan Oil and Gas Association, said drilling statewide is up about 10% over 2007, with 242 holes sunk in the first six months of this year.
Oil and gas drilling in Michigan, which has gone through peaks and valleys since the 1950s, slowed in the early part of this decade, Mortl said. Although production jumped last year, the state’s wells pumped more than 10 million barrels annually for several years through 1997.
Still, Mortl said, Michigan could never produce enough crude oil to meet the state’s needs. Michigan wells produce enough oil to meet less than 5% of the state’s consumption. Michigan ranks higher as a natural-gas producer — 13th nationwide, with enough gas for nearly one-third of the state’s needs.
Industry, hotels, others benefit
High energy prices also have intensified interest in related projects, such as a proposed gasification plant at the site of an abandoned oil refinery in Alma in mid-Michigan. That proposal is for an elaborate multistage process that produces synthetic gas and jet fuel from raw materials and massive quantities of carbon dioxide. The carbon dioxide, linked to global warming, can theoretically be injected into depleted oil wells to increase oil production. The project has been several years in the making.
Chelsey Foster, project manager at the Greater Gratiot Development economic development agency, said the owners of the M&M Energy and Research project “were excited when oil was at $60 a barrel. Now they’re ready to go.”
Increased drilling leads to more jobs — from geologists to pipe fitters — and the service sector it supports, such as hotels and restaurants. State government reaps higher income from lease payments and royalties from production, which are dedicated to a fund used to purchase land and waterfront for public recreation.
Private landowners also benefit from mineral rights leases sold to drillers and royalties if the wells are successful.
Contact DAWSON BELL at 313-222-6604 or dbell@freepress.com.
[Reply]
so what if michigan produced 6 million barrels of oil last year? That wouldn’t even supply our entire country for 12 hours.
[Reply]
The point is we have oil in the USA, and plenty of it. If we would just use what we have for our own people it would help. How much do you think the people pay for gasoline in Saudi $60rybl’s , however much that is or Venezula ,12 cents a gallon. That is how our country could help us, give their people a cheaper price. The problem is we are the biggest consumer. If they could sell as much to Brazil or EU or Africa or India or China as we consume, then they wouldn’t charge us so much. I just thought of something. Do you think that is why the Car industry went overseas, was so if other countries bought cars then they would need more oil and we could make more money, the more people drive cars that run on gasoline! Oil is used to make alot of plastics and medicines and medical equipment, car bumpers, all kinds of things, so we need oil and always will. I wish they would get going tho on air compressed engines and hydrogen and natural gas and electric cars ……yah sure don’t hear much about any advancement in that area……promises promises…….no health care yet either…..our government got their raise and their office back during the election so I guess they are slaking off on moving on the issues……….
[Reply]
Sean replies:
April 12th, 2009 at 1:56 am
Car industries went overseas because other countries are developing just like we did but 100 years behind.. We could make tons of money if we had oil. We used to be the largest exporter of oil in the world. thats when our country was at its prime in wealth. Ever since the sixties we’ve had a decline in oil production so we’ve had a decline in wealth. We then had to set policies to try to maintain a balanced supply of money (fiat), then we had to set policies to maintain the price of foreign oil (monetary policies due to core inflation).. Now we have to set policies to rid us of our addiction to foreign oil.
[Reply]
Jan replies:
April 12th, 2009 at 5:27 pm
Sean, who are you anyway? I know all that but you are not understanding the picture. You are obviously a believer of the propaganda that they have fed you. The Truth is being revealed right now and their Devil lies are being blown apart. This is not a time to try to reiterate all their lies, we are beyond that….apparently, you aren’t. Do you know your on a a site where this congressman Ron Paul is trying to at least start with transparency in the Federal Reserve, concerning “Where did the Money Go?” You must be very young and haven’t lived through as many years of this crap as we have…..we want to expose them as much as we can now, or your life and my life will be had, and you have no idea how bad it will get before Obama gets out of office. And I”m not blaming him….but you don’t know Who’s puppet stings he is attached to..any president that has ever been assinated in this country was assinated by the Elitest’s when the President’s at that time tried to get the banks back to the people and our money out of the control of the Federal Reserve. I do not want Obama hurt, I want us the people and the congress to fight the system. What is occuring right now is Tyranny and a Coup de Tat and it must be stopped. All your doing is giving back to us the lies and we are way beyond that now….so Grow up !
[Reply]
Sean replies:
April 12th, 2009 at 6:44 pm
obama’s plan will cut the deficit in half.
[Reply]
Sean replies:
April 12th, 2009 at 7:00 pm
Tell me what you want to do.. you want to break up the federal reserve and let whom take the responsibilities? would you rather banks take their responsibilities for the interest of big businesses, or would you rather let the government take over the power and nationalize the banks?
Nate Y replies:
April 12th, 2009 at 8:39 pm
Sure it will. Just like the Iraq war will be over in 6 months and will pay for itself through oil revenues. Or just like the Fed will keep prices stable and mitigate the business cycle. Promises from government are not to be taken for granted.
How about let the market function? There is such a thing as free market discipline.
Sean replies:
April 12th, 2009 at 9:24 pm
You can call for bank anarchy all you want. Whenever you take one out of power, you put one in. That is what history shows us over and over. Large banks will become dominate and set monetary policies in favor for big business instead of the people. WIiiise idea
Sean replies:
April 12th, 2009 at 7:13 pm
haha and who’s lies are you talking about??! Do you think i got this information from the government or federal reserve? I got most of this information from charts and reading old news stories and studying economics for years.. Please tell me which part you think is a lie.
[Reply]
Nate Y replies:
April 12th, 2009 at 8:42 pm
Too bad you’ve been studying all the wrong economics. You apparently have a strange mishmash of Keynesianism, Mercantalism, and monetarism working in that head of yours.
Sean replies:
April 12th, 2009 at 9:20 pm
prove me wrong.
Sean replies:
April 12th, 2009 at 9:46 pm
Its called “american school of economics.” I guess you support “free trade,” which was woodrow wilsons plan when setting up the federal reserve. Its called “The New Freedom” policies.
Sean replies:
April 12th, 2009 at 2:11 am
well california now has electric stations and are now building batteries for new electric cars that are comming out.. Air doesn’t burn so it wouldn’t work. hydrogen is explosive and dangerous, same as natural gas.
[Reply]
Jan replies:
April 12th, 2009 at 5:39 pm
Again Sean your misinformed or ignorant. Every other country is already manufacturing alternative energy cars….but the USA. Please inform yourself and go to this website and read the latest action being taken on Air compressed cars and Electric cars and hydrogen cars and natural gas cars……
Of course, air doesn’t burn, it’s not run like that, its compressed air engine. ……study before you speak…….
If your college and this is what they are teaching you, then you are not aware that they are trying to dumb yah down for God’s sake……don’t waste your time and paying big bucks cuz there ain’t going to be any jobs with all the junk they are telling you.
This is an age of new inventions and entrepreuerships..we are not living in the horse and buggy days…..the electric car was first made in my hometown in Michigan in 1913!
Ford took over the gas guzzlers and put the Hubb mobile out of business. that car ran for 100 miles before it needed recharging. And I”m sure if the batteries used were nothing like what the technology has now…
http://freeenergynews.com/Directory/CompressedAir/index.html
[Reply]
Sean replies:
April 12th, 2009 at 6:47 pm
we didn’t have an electric grid that would support electric cars. Your talking about replacing oil with coal. Obama is setting up renewable energy so we wont have to replace one fossil fuel with the other.
[Reply]
Sean replies:
April 12th, 2009 at 7:10 pm
I think its messed up how they have been holding back technologies from us.. But that has nothing to do with bankers.
Nate Y replies:
April 12th, 2009 at 8:36 pm
Why in the world are you bringing up bankers? They are completely irrelevant for what you and Jan are debating. You two seem to be concerning yourselves with GOVERNMENT “holding back technologies from us”. You have a tendency to conjure red herrings without even realizing it.
Sean replies:
April 12th, 2009 at 9:18 pm
why do you always stick your nose in places it does not belong?
Jan replies:
April 12th, 2009 at 10:53 pm
China is polluting this country every day and won’t stop.
We can go green all we want to and it won’t help us a bit until China stops building a new coal factory every week.
And that fact Sean is right from the experts and congress.
If saw them building factories or converting factories in Michigan for electric cars and Solar panels, I say great some change is happening…Nada.
Detroit used to be population of 2.2 million, you want to know how many people are there now? 900 thousand!
And it has the largest population of Arabs in the USA.
400 people moved out of year a month starting 5 years ago.
And more everyday are being laid off. Do you know anyone who lives here? How’d you like to pay our heat bills for six months in the winter.
Yah know what congress has given in the stimulus package for upper Northern Michigan..our Record Eagle posted what that money will be used for last week…….
11.2 million for a new Airport Controller’s tower. Cherry Capital Airport was just built @4 years ago, NW Airlines stopped flying in here…no ones buying any tickets, and you can’t tell me they need a new one already.
millions more for a new ski resort in Leelanau county.
2 more million for a new board walk so when the rich park their yachts on the canal and to go eat at a ritzey restruant they will have a nicer board walk to walk on.
I can’t afford to eat there I”ll tell yah that and if you will look at the list its all projects for the rich…..we need roads repaired and salt for the snow and ice we get up here, and our potholes filled etc.
This is BSSSSSSSSSSS
nothing for the working class…….nada…..
Our government is a joke, and they are laughing all the way to Benacke’s Federal Reserve Bank.
Sean replies:
April 12th, 2009 at 11:48 pm
You can thank your congressman for that. It was up to him to spend that money.. China would probably follow in our footsteps and may even buy the technology from us..
Florida is building the first fully solar powered city. Its supposed to be finished by 2011. Others will follow, it begins.
Nate Y replies:
April 13th, 2009 at 12:13 am
Why do you even post on this site? Not a single person here agrees with your “american” (read: Keynesian/mercantalist/monetarist) economics.
Tell us why you post here and I won’t intrude on any of your further convos. Of course, i reserve the right to respond to any economic nonsense you happen to post.
Since you passed out “The Revolution” to friends and family, will you be doing the same for “End the Fed”?
Sean replies:
April 13th, 2009 at 12:17 pm
i’m here because i want people to get the facts straight. You cant rebel against something you have no idea how it works or why it works. Your criticizing American school of economics, but thats how we were before we started the fed.. If your going to sit here and argue with me, i’m going to prove you wrong, or i’ll let you prove me wrong and accept it.. Half the people here read one or two comments i say and think i’m for the federal reserve and against liberty. Thats totally wrong. I understand how the system works so i’m not pointing fingers at anything i don’t understand. Ron paul has never said that he believes in all these conspiracy theories, but he is against central banks. I’m also against central banks, but I understand the reason they were created and how they hold the system together from crashing. Because i know this, which isn’t hard to understand, I know what has to be done to get rid of the fed… I could sit here with my finger up my butt yelling “end the fed,” or i could educate myself and spread the word. Ya’ll aren’t the only people i talk to, but ya’ll are the only stubborn people who dont get it.
Sean replies:
April 13th, 2009 at 12:23 pm
What if i thought they actually killed babies for stem cell research and i protested against them? Wouldn’t it be correct for me to understand how it works before I protest, and then once i figured out that they use fetuses, i can make a better judgment based on that assumption? Because all of you are saying that the federal reserve kills babies, but you have no clue whats really going on.
Nate Y replies:
April 13th, 2009 at 11:14 pm
You seem to think that you’re the only one here who went to college, studied economics, talked to professors, etc. You also show no understanding of nuance. Do you seriously think that anyone who says “End the Fed” wants to see it done overnight? First of all, that is impossible. Secondly, everyone here knows such action would be impractical. You say you know the steps that need to be taken to end the fed. What are they? Obviously you don’t think the proposed audit is a good idea. You’ve already demonstrated you don’t support competing currencies and repealing legal tender laws which would greatly diminish the power of the Fed and give some back to the people. So what are these steps? I’m guessing you think it’s something to do with oil.
Also, we’re only “stubborn” because we can easily counter any nonsensical argument you make. You also seem to think that we don’t know how the current monetary system works. Your arrogance is disgusting.
Sean replies:
April 14th, 2009 at 12:25 pm
haha. you can easily counter any nonsensical arument i make??? you haven’t said one thing… later down you say that you cant prove or counter anything i say. YOU HAVE NO IDEA WHAT YOU ARE TALKING ABOUT.
Sean replies:
April 14th, 2009 at 1:38 pm
HAHA! OMG you are sooo stupid. legal tender laws don’t outlaw floating currencies.. Even if we got rid of legal tender laws, the dollar would still be the dominate currency and nobody would accept your monopoly money. THe reason why your saviors had to quit making silly money, is because nobody would accept it and they called the cops on them.
Sean replies:
April 12th, 2009 at 2:15 am
Its going to take a while to see results, they can’t move any faster without being socialistic.
[Reply]
Jan replies:
April 12th, 2009 at 5:50 pm
What do you call funneling all of the taxpayers money into the Federal Banks and now Federal Corporations? A Dictatorship. What do you call it, when all money is given to government then they put everyone on welfare from government funds? Communism.
What do you call it when a government, takes all tax money and the people have no more jobs and and can’t earn anymore money for anymore taxes…..Socialism/Slavery.
[Reply]
Sean replies:
April 12th, 2009 at 6:43 pm
You should inform yourself before you speak
http://www.autobloggreen.com/2009/03/20/president-obama-announces-2-4-billion-for-electric-vehicles/
[Reply]
Jan replies:
April 12th, 2009 at 11:01 pm
Show Me the Money and Show me the Factories, then Show me the Jobs! Words I do not believe anymore. Let’s see it happening…..What state is it going to, and what corporation is it going to??????????????????????????? AND WHEN!
Sean replies:
April 12th, 2009 at 11:53 pm
I saw the factory on tv.. Here are the jobs. …………………… right now. you just have to askkkk.
https://www.fbo.gov/index?cck=1&au=&ck=
Sean replies:
April 12th, 2009 at 6:49 pm
welfare is a work rehabilitation. you can only be on welfare for so long.. and you are wayyy off. communism is when government owns capital. a communist government owns all the businesses. A dictatorship is when the country is ruled by one leader, but this never truely exsists because every king has his round table, the correct term is oligarchy.
[Reply]
Sean replies:
April 12th, 2009 at 6:56 pm
And i believe its called social contracts when the governments take your money to pay for wars and healthcare.
Jan replies:
April 12th, 2009 at 11:02 pm
Are you talking about Corporate Welfare?
Sean replies:
April 12th, 2009 at 11:57 pm
I’m talking about work welfare, not disability.. Here are the rules..
Require most recipients to work within two years of receiving assistance,
Limit most assistance to five years total, and
Let states establish “family caps” to deny additional benefits to mothers for children born while the mothers are already on public assistance.
Debunking federal reserve conspiracy theories
http://www.geocities.com/CapitolHill/Embassy/1154/flaherty.html
[Reply]
Sean you manage to show up at random trying to dis inform as many people as possible about the feds, constitution, etc. Ive been reading comments here for quiet sometime and i find that your position no matter what the evidence is to contradict it always remains the same. i have yet to see you and i quote, give credit where credit is do. in light of your obvious position on the facts as a rigid minded opponent of civil rights and such. it leads me to conclude that your not an unbiased party and have vested interest in trying to convince as many people as possible of your clearly misleading “facts”. i find your tactics tasteless and your attempts to mislead people here as pointless. here we have made up our mind that our institution of government is corrupt. on that topic there is no more debate or lawyery that you can use Sean to convince people otherwise. and you can go back to whoever sent you and tell them that there are free man and woman here. not slaves, neither physically and definitely not mentally.
so go from us in peace “Sean”, and let posterity forget that you were our country men.
Samuel Adams, take a hint and a hike.
[Reply]
Sean replies:
April 13th, 2009 at 11:41 am
haha. How are you going to find peace if you dont know what is or the motive for what is holding you captive?
[Reply]
we the people replies:
April 13th, 2009 at 6:09 pm
Sean fuck off okay. i said leave from us in peace. meaning take that shit your spewing here in piece or a state of tranquility, and your person and be gone. we the people have spoken. we have had enough with the fed and all who advocate for their most important role in our society. enough is enough. don’t you get it or are you just playing dumb. we don’t need your guidance we have chose our representative. and obviously his name is Ron Paul comprenday.
[Reply]
Sean replies:
April 13th, 2009 at 7:15 pm
you need some serious guidance that neither ron paul or i can help with. Go see a shrink
[Reply]
Nate Y replies:
April 13th, 2009 at 11:15 pm
You and Ron Paul are completely at odds in all things economic.
Sean replies:
April 14th, 2009 at 12:23 pm
please explain.
Sean replies:
April 14th, 2009 at 1:34 pm
I believe in sound money, i just understand the cost in free trade.
Ross replies:
May 22nd, 2009 at 11:25 pm
Now was is a bit harsh.Sean is the resident troll and village idiot who has the right to make a fool of himself.How can Sean reach self actualisation with everyone abusing him? Troll us over in the clover troll us over lay down your lies and do it again!
You are not trying hard enough Sean.Rattle those keys and addle your brain.
[Reply]
Sean replies:
May 22nd, 2009 at 11:53 pm
haha, your “revolution” is not going to happen. keep wishing. your living in a bubble
Ross replies:
May 23rd, 2009 at 2:34 am
Talking about bubbles Sean ,you are the personification of intellectual flatulance.Your aim is cyber clutter.Fill up sites with meaningless babble.
The revolution is happening Sean and the proof is 179 co-sponsors of HR 1207.The current number of voting representives is 435.This means that 41% of Congress supports Ron’s bill.
You see Sean,as it gains more momentum,it will be unstoppable since truth like cream always rises to the surface.
oh and Sean and i say this with all honesty and fairness. i really don’t like you. and i definitely don’t like your way of thinking. lucky for you that were not having these conversations in person. im a principle based man meaning a truth must apply universally with me. and i have a principle for traitors like you. i don’t think you’d like it very much. but i can assure you this enemy of my enemy is my friend. but friend/advocate of my enemy is….. do i really need to finish this sentence i guess not
[Reply]
Sean replies:
April 13th, 2009 at 11:43 am
I don’t care if you dont like me or what i have to say. You obviously dont know anything about money, government, or motives. Please tell me what i said was wrong.
[Reply]
The big difference between Sean with his Fed Res facists and Ron Paul is; Ron Paul will never censor anyone’s opinion in the true tradition of his philosophy of liberty,whereas the Fed have been everything but true,honest and fair.The more Sean enuniciates his flawed,perverted logic,the happier is Ron.
Feed us some more bullshit Sean,since I’m sure your supporters are paying you well for this dis-information
[Reply]
Sean replies:
April 13th, 2009 at 11:44 am
what part do you think was bullshit?
[Reply]
sean….
not you again go that way.
[Reply]
the name of this website is ronpaul.com not Sean.com. Ron’s message of liberty has brought us together from all corners of the US to defend freedom. Ron is very consistent were as you don’t know what to defend or support. and if you think that we are not aware of our enemy’s and the methods they are using to enslave us your mistaken. some of us like Cheryl, has done extensive research. and even if we don’t agree about every single detail we know what institutions must go. the fed IRS and all the other alphabet agency’s that have spawned since 1913. all seem in one way or another trying to argue under or around the constitution. you need to pardon my french get your shit straight Sean. either your going to defend the constitution or not. its really that simple. read it no interpretation required and uphold it. you boast of how enlightened you are than fulfilling your pledge to the flag shouldn’t be that difficult. like Galactis said we are free men and woman here so get your shit straight or give it up.
some of us meet here to discuss strategies on changing the status quo your just a pest. the proverbial fly on the wall.
[Reply]
Sean replies:
April 13th, 2009 at 7:12 pm
Haha, i would love to hear your strategies. please share with everyone what you intend to do besides sitting on your ass eating chips.
[Reply]
Sean replies:
April 13th, 2009 at 7:30 pm
why can’t you prove one thing i say to be incorrect? i’ve heard people call me wrong a hundred times but nobody can put forth the effort to prove me wrong. It just lowers yourself to write these long hate filled comments. What kind of person are you? I’m not telling you to stop listening to ron paul, and i pretty much agree with him on everything. We have the same philosophies but i think i look deeper into the truth.
[Reply]
Sean replies:
April 13th, 2009 at 8:02 pm
i correct myself. the ladies have been putting forth great efforts and inputs. They have more in them than you.
[Reply]
Nate Y replies:
April 13th, 2009 at 11:19 pm
Prove to me that I’m not the reincarnation of Alexander the Great. I’ll be waiting.
[Reply]
Sean replies:
April 14th, 2009 at 12:21 pm
Reincarnation is a belief.. Are you saying money is a belief?.. haha
[Reply]
“The People have begun to speak, the People are listening, the People are angry and ready to act!” -Lee Jordan Morales
Let the Revolution Begin!
[Reply]
Thanks You Guys. I really appreciate your speaking up and booting out Sean…..We the people have spoken Sean. We are fed up with all you Feds propaganda.
I came back tonight to post another site containing the Truth.
here they are:
http://www.scoop.co.nz/features/RealDeal.html
http://www.scoop.co.nz/stories/HL0503/S00090.htm
You may want to read several pieces, re: John Perkins “Confessions from a Economic Hit Man” and Kelly:
Will the Real Economic Hit Men Please Stand Up
http://www.scoop.co.nz/stories/HL0503/S00090.htm
along with the two posts here called “Material Omissions”.
from one of my favorite people, who totally understands what we are up against. check out her site: Solari.com
[Reply]
Sean replies:
April 13th, 2009 at 11:35 pm
feds propaganda? ok, you can ignore the fact that the fed was created to promote free trade under woodrow wilsons “new freedom” policies.. You can pretend you understand the 4 different types of money in our system and how it works. You can want to destroy the fed, but until we end free trade, its impossible. THe fed right now is making itself transparent so there are people who say that this bill wont even pass. I hope it does, but I hope you understand that nothing will happen to Federal Reserve if it does.. If ANYTHING happens, by law, whichever publicly elected official will be put in prison.. They are adding transparency, so nothing else will really happen. We’re not going to get rid of federal reserve because all republicans and democrats are for FREE TRADE. I’m sorry to rain on your parade.
[Reply]
Sean replies:
April 13th, 2009 at 11:46 pm
u see this.. our country is getting poorer. They can’t even create enough money, we spend so much overseas.
http://en.wikipedia.org/wiki/File:Components_of_the_United_States_money_supply2.svg
M1 is the amount of money in the economy.
[Reply]
Nate Y replies:
April 14th, 2009 at 12:14 pm
Perfect example of your lack of economic understanding. Again, you demonstrate that you think money is wealth.
[Reply]
Sean replies:
April 14th, 2009 at 12:28 pm
i said production is wealth. You keep putting words into my mouth to make you sound right.. If you don’t know nothing about the “money supply” than it proves your lack of economic understanding. hahahah! what a fruit.
Sean replies:
April 14th, 2009 at 1:53 pm
This is the most important lesson you could learn. Here, read this..
“Government, through more law, can create money
to directly intervene in trade that follows bank created
standard money. This is fiat money, based not on the
wealth it represents, but on its systematic use to avoid
radical loss in its purchasing power.”
-HenryC.K.Liu
Sean replies:
April 14th, 2009 at 2:01 pm
What do you think “globalization” is?
“Globalization is often used to refer to economic globalization, that is, integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.”
THere is your NWO. If you don’t understand central banks role in free trade and globalization, than you must be dumb founded..
Seriously, what do you think NAFTA is? What do you think the European Union is? You seriously must be off in the head.
Nate Y replies:
April 14th, 2009 at 2:46 pm
“u see this.. our country is getting poorer. They can’t even create enough money, we spend so much overseas.”
Where does this say anything about production? Money creation is not production.
Again you resort to the ad homs. I have not called you a single name. The only thing I’ve done is counter your economic nonsense. Seriously dude, why not post on an Obama site or a site favorable to the current administration? Most everyone here is hostile to your posts and your ideas with good reason.
Your Liu quote is a little odd. The creation and use of fiat currency does nothing to avoid a loss in its purchasing power. Such action does the exact opposite. It destroys purchasing power.
I much rather prefer
Part I: A Crisis the Fed Helped to Create but Helpless to Cure
by Liu.
http://www.henryckliu.com/page151.html
Still waiting for you to prove that I’m not the reincarnation of Alexander the Great.
Sean replies:
April 14th, 2009 at 3:01 pm
HAHA! you can’t prove a belief. Are you calling money a belief? I said production creates wealth. Are you that idiodic? You haven’t countered anything! I will call you a moron till you do.. You are RETARDED! “its systematic use to avoid radical loss in its purchasing power.”.. DO you know what systematic means or are you FUCKING RETARDED? When we grow too much we spend too much money and it creates inflation, or the loss of purchasing power. We can stunt growth by raising interest rates. Thats how the SYSTEM works. Your tiny little brain can’t put 1 and 1 together.
Nate Y replies:
April 14th, 2009 at 4:38 pm
You are a liar and your arrogance is astounding. You said “u see this.. our country is getting poorer. They can’t even create enough money”. You can’t run from your own words. Your implication is that we wouldn’t become poorer if we could just print money. Either that or you just have a terrible way with words. Also, there is no systematic way to print and use fiat currency to avoid a loss in purchasing power. Perhaps there is some trickery that so it can work in the short term, but in the long run it’s a disaster.
Also, the point of a debate is not to prove anything to the other person. It is a very rare thing to change another person’s mind on the spot. Rather the point is to see what the audience thinks. Granted, this forum is biased against you and your economic nonsense but just take a look around. Read the replys to your posts. Do you think anyone here will ever come around to your way of viewing these matters? I very much doubt it. Especially when you consider most people here probably once held views similar to yours.
Sean replies:
April 14th, 2009 at 5:46 pm
you obviously cannot read. It says “to avoid RADICAL loss.” do i have to spell out every word for you?.. My implication is that we would become poorer if we couldn’t print money. You wrote the exact opposite of what i said.. I dont even know exactly what you think i’m saying is wrong. Most of this is basic common knowledge.. I remember you gave me a list of like 10 things you thought i was saying incorrect and then i proved you wrong with definitions and quotes from the encyclopdedia.. You should make that list one more time. Please tell me what you think I say is incorrect, or do i have to go back and repost all that information i proved to be correct.. I guess you don’t understand the concept of a debate.. haha, you don’t just say “wrong” “wrong” “wrong” with no insight for yourself.. Say something intelligent or say nothing at all.
Sean replies:
April 14th, 2009 at 5:54 pm
I mean seriously, you sit here and argue against webster dictionary.. This is pointless, i can’t debate with someone who says that the dictionary isn’t correct.
we the people replies:
April 14th, 2009 at 12:19 am
Sean tis tis, did say Woodrow Wilson help create the fed to promote and stabilize free trade. see that only makes sense in your mind because he then said and to quote him.
“A great industrial nation is controlled by it’s system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world– no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.” — President Woodrow Wilson
[Reply]
Sean replies:
April 14th, 2009 at 11:58 am
tis tis, learn your history.
http://en.wikipedia.org/wiki/The_New_Freedom
[Reply]
obviously the matter at hand is to wake as many people as possible by sending them to sites like warnthepeople.org
or videos on the fed and their influence on our politics . that should give people a glimpse into what this is all about, and through the facts that theses sites contain. firmly separate for supports sake, separate our message from that of the UFO conspiracy theorist. while simultaneously explaining to them that our top priority is gather as many people as possible, to contact their representatives and push to have the fed audited. and in turn become active in the fight to wake people up. 1 tells 2,=4, 4=8, 8=16, 16= 32 etc
for those of us who are not engaged in dick sizing Sean, we can act like relays and just forward information and distribute it through all available mediums of communication. via telephone, fax, mass email, social networks, USPS. handing out fliers in schools, police stations hospitals, fire station, you get the drift. or good old fashion blow horn in a shopping district with charisma and passion to stir up the masses. hey just telling people that the bailout money that they are paying for is going into the pockets of the same bankers who own the fed. remind them of what madolph had done with the 60 billion. and wallah you’d be surprised how many people will join the cause.
see Sean, while your here talking all that junk Ive been sending faxes, to every representative and senator in NY, NJ, DC 3 times a day. about HR 1207. print out about a thousand fliers a day and distribute them in the locations mentioned above when im not fixing computers. I’m also trying to get some students in colleges and university’s to spread the truth on their campuses. you see Sean while your talking big you haven’t done shit. oh and please don’t even think of making shit up now that i mentioned all of this. because Ive been reading post here for a while. and i haven’t heard of any of your efforts to spread the news. and i was wondering if someone here could visit our sister sites and attempt to inform people on not just the facts. but methods by which they can transmit the information more effectively. Ive come up with my own job description called STIR. IRONIC ISN’T IT:) lets stir shit up
see Sean talk is cheap but actions are priceless.
job description. Source to Target Info Relay. (STIR)
to retransmit a signal or message
to retransmit (a signal, message, etc.) by or as if by means of a telegraphic relay.
[Reply]
we the people replies:
April 14th, 2009 at 12:26 am
see what i mean people Sean just wants to tell us all that we are doing all of this in vain. sound familiar, double speak huh. one minute he says that he supports all that Ron Paul does. then the next hes like well it doesn’t mater what any of you do you all are going to fail. you see Sean, the more you speak the more obvious your roll on this site becomes. unfortunately for you this isn’t mass media where information is sent one way. here we can call you out on your lies and distortions. and send you packing. don’t you just love the internet….LOL
[Reply]
Sean replies:
April 14th, 2009 at 12:00 pm
you haven’t called me out once in a lie. prove me wrong. Your a bunch of talk and no brain.
[Reply]
Sean replies:
April 14th, 2009 at 12:03 pm
LOL!!! why are you calling other people’s representatives? I bet they get tired of you writting the wrong person three times a day. Why dont you call your own congressman and senator. Thats how the system works.
[Reply]
Sean replies:
April 14th, 2009 at 12:11 pm
Just so you know.. A democracy is when the people vote on laws, but since people are economically different from one another, we give each district a representative who speaks for the people in their area. Its not the duty of a congressman in some other state to listen to what you have to say. They probably laugh at you.
[Reply]
we the people replies:
April 14th, 2009 at 5:18 pm
i said faxing asshole, not calling get your shit straight jerk off
[Reply]
Sean replies:
April 14th, 2009 at 5:32 pm
wow, your high tech.
to bad Sean that your so controversial. no one cares about your views or ideas and that must hurt. you need closure and its sad that you don’t know when your not wanted.
[Reply]
Sean replies:
April 14th, 2009 at 5:33 pm
which part is controversial? please explain.
[Reply]
Ron Paul and I have the same concepts but i go into more detail..
We both think that we consume too much. I say that our number one consumption is oil. We say that we must live within our means. I say that we should protect domestic production so we can produce as much as we consume. We both say that central banking practices lead to business cycles. i say that monetary policy, or central banking is based off core inflation, or the price of oil. So we have to control oil to get rid of monetary polices.. If your saying i’m wrong, than your saying ron paul is wrong.
[Reply]
Sean what do you do for the freedom movement exactly huh. i don’t see you trying to concentrate our forces but to argue away our resolve. i never hear you speak on how you contribute to inform the masses. all i ever here you do is argue with them endlessly. so Sean what do you do besides waste time here huh. actions speak louder than words don’t they. and your actions seem directed towards pissing people off Sean. so WHAT IS IT EXACTLY, YOU DO FOR OUR COMMUNITY’S SEAN….
[Reply]
Sean replies:
April 14th, 2009 at 7:17 pm
I drove across the country to support Ron paul at the campaign for liberty in minneapolis, i’ve donated about 100 bucks, i bought a bunch of his books for christmas presents, i’ve called my congressman, and speak out against the income tax, war, and government spending to my friends, people at college, and work.. I didn’t know you wanted a bibliography.
[Reply]
[...] of unconstitutional wars, b) abusive taxation, c) lack of transparency in the Federal Reserve, d) creation of money out of thin air… [...]
30,000 people die of the plain ole Flu every year! And they don’t call that an epidemic.
Is anyone old enough to remember the Swine Flu scare and the mandated vaccine ordered by President Ford? Well, I got the vaccine and I nearly went into respiratory arrest on the way home from getting it! A few weeks later, President Ford came on the news and said he was sorry but humans can’t get the swine flu, it’s passed from pig to pig.
WJR out of Detroit,this week put its listeners in touch with that Swine Flu scam back in the late 70’s and reported, that year 55,000 people died nationwide of the Swine Flu vaccine and 30,000 of the 55,000 died here in Michigan from the vaccine!
So, I think this is another way for government to depopulate us and to get our focus off the investigation’s of our government. Also, what I am wondering is the 100 or so who died of some kind of flu in Mexico, did they die after they may have been used as guinea pigs from taking the Swine Flu vaccine? And the one little Mexican baby that died just across the border in Texas, had she been given the Swine Flu vaccine along with her outrageous numbers of other immunizations that they are giving now to babies?
Plus, this Swine flu vaccine has double the amount of Mercury in it as a preservative, enough for a 1,000 lb. human …….but not little 7 lb babies. The mercury in those flu shots would nearly kill yah let alone a vaccine that is not transmitted to humans and should never be put into the their bloodstream to try to build up antibodies against it…..it’s kind of like what Monsanto does with their GMO seeds and GMO piglets…..no human can tolerate that type of food. Monsanto’s should be stopped too. This swine flu thing is probably just a ploy to MAKE everyone buy Monsanto’s GMO piglets, to make the company rich and a monopoly on, all,our food.
The only trouble is people who eat the food grown with the GMO’s well, they expect about 20,000 million starving people to die from the food Monsanto produces…….but what do they care right?
Feed the Hungry programs are all run by the Elitist’s to make money and kill us off.
Sorry to be so suspicious and negative but I’m fed up with the feds…none of them either know what they are doing or don’t care.
[Reply]
why does BOA need another 32 billion, they have been on a mad purchasing rampage
anyone believing our current political structure is a democracy is deluded, we are in an oligarchy
free vaccines are here for the taking now, ask at your pharmacy, lets ask for our fearless leaders to let us inject them first!
[Reply]
Yes, I agree, I want them to take the Swine Flu and Avian Flu vaccine first…on film, live……cuz back in 1976 I nearly died from getting the Swine Flu Vaccine….when President Ford mandated it and then came on TV and said “oh sorry, humans can’t get it”. Here in Michigan 30,000 died just from the vaccine! 55,000 died nationwide. Two doctors from Georgia were up late last night in the US House and are Rep. and they had a chart all about the Swine Flu vaccine and what it did to us in 1976. They are against it.
And they think with just one baby from Mexico dying from H1N1 just over the border, in Texas, doesn’t mean its a pandemic! In 1976 Ford spent $125 million on the Swine Flu vaccine and it was given to 50 Million people. Now President Obama wants to spend $2.2 Billion to give the world the Swine Flu vaccine! I wonder if he has forgotten the 1976 disaster with it and also, what happened to our Healthcare Program, our Housing Bubble that busted, and the Bank Bust! Lets put that money into getting Healthcare insurance for those without it!
[Reply]
What next? What could possibly be next? It is a new crisis every single day with this Obama Administration — say one thing, and do completely the exact opposite!! Today Obama wants to increase workers at the I.R.S.!! They want to “audit”, and monitor us(the little guys), yet they squander, steal, mis-appropriate, and waste BILLIONS of dollars daily!! With the exception of a few good folks who are honest, are truthful, have integrity and the best interests of the Country and American People in mind namely RON PAUL, DAVID VITTER, CHARLES BOUSTANY, and others whom have taken a stand for what is right, just and true, the majority in Congress don’t have a clue as to what is going on, what has gone on, and whom to hold accountable. The economy is in shambles, morale across the nation is at it’s lowest in years and sinking daily, and all they talk about is “their agenda”. What about the little guys, what about the small business, what about the true Americans that pay their taxes, try to pay their bills, and raise a family in this environment of UTTER CHAOS???? Obama’s CHANGE has come to America, and the HOPE his administration speaks of is that no-one will pay much attention to what is actually going on “behind the curtain”….. Thank GOD, there are some honest people in Washington, D.C. that want to look behind that curtain, and expose what is really going on……. Financial Terrorists.
[Reply]
[...] but first I want to mention that I find it awfully frustrating at times when we always talk about inflation and we only talk about the prices and say, “We have prices under control, there is no [...]
Returning to a gold or other precious metal based monetary system is an intelligent step in correcting this debacle.. Although there isnt a court in the world to prosecute those responsible, it should at least be attempted.
There are enough knowledgable people in our communities with enough evidence (its all around us for that matter), regarding the dealings of the Rockefellers, Carnegies,Rothschild, Kissengers etc, (The Bilderberg Group)to bring a class action against these entities for the miriad of crimes they have committed against people, governments and nature.
If someone is convicted of drug related crimes, they can often have there possessions confiscated as they were purchased with tainted money or not paying their taxes. So.. if it can be proven (and it can), that these elite satanists are responsible for creation of wars, false terrorist attacks, fiat money system, poisoning of our food, water, air, creation of third world debt, suppressing advanced technologies, creating religions for the purpose of control, hijacking governments, genocide, unauthorized mass inoculations, biological attacks, insider trading, etc etc, then it stands to reason that they should be stripped of their entire fortunes.
Their empires were built on lies, deceipt, murders, theft, treason etc, basically every trick in the book so why not confiscate their ill gotten wealth and return it to the people…
There’s the stimulation the economy needs. Remove the cancer and life will thrive.. Return the wealth to the people, let the free-market find its equalibrium. Let the banks fall if necessary as they are all false institutions anyway.. Abolish the Federal Reserve. It wont matter that Illuminati own the gold, coz if they are crushed then they have none and can no longer manipulate the markets/economies/government.
NWO have plans to exterminate 80-90% of the global population, create a world government, world currency, world army and a microchipped population of less than 1/2 billion. If they are not stopped soon, then the US economy will fall, the government bankrupted (and the people), and complete devaluation of the dollar and the rise of the Amero currency and the North American Union.
Turn off the mainstream television/radio news, stop buying newspapers and tune in to alternative media reporting the real truth, not the multitude of fabricated BS spilling out of a familiar (trusted) face on t.v. Direct family, friends and strangers to the relevant websites etc to arm themselves with as much info as possible…
Remember violence is never the answer, and if it gets to the point where BlackWater military personnel start kicking in doors and dragging patriotic Americans out of their homes at 4am to be flown to concentration camps for immediate extermination, then we have failed.
The best way forward is by realizing the ultimate truth.. That we are all ONE. Separation is an illusion.. God is not angry or vengeful like religion has u believe and u are not going to burn in hell for committing a sin… That is complete and utter nonsense when the true nature of our universe is understood.
There is no real enemy. Our own fears and doubts created this situation as we did the people blinded by greed that perpetuate the problem. We only need truly love ourselves and each other and we can change the world but it must start within. Nothing happens on the outside that hasnt first happened on the inside.. So if u dont go within, u go without.. If we heal within, the outside must reflect the innerhealth, as its the law… So when our perspective, beliefs, maturity and unconditional love resonate with the flow of the universal current of life, then our physical world will reflect that also. Solutions to problems come from the divine within us all.. Nobody has ever had a good idea using subconscious memories replaying over and over in their mind..
All good ideas come from inspiration (divine). And since we are all varying expressions of the one life (source energy – God), then we can all effect change via tapping into our inner source.
Change is upon us, but we are at a critical phase. The change can be the end of freedom as we know it… or it can be the start of true freedom as we have never known it… The choice is ours…. Start remembering who u really are and shine ur light on all those unfortunate enough to have forgotten..
Peace I Am
P
[Reply]
I am totally against to the private power the Federal Reserve has over the issuance of new American dollars. I am fully aware of how this unconstitutional power has used American dollars to create a Global Economy through the IMF with the full intent on creating a World Government. It is like unto Their foolish effort though Hitler to create a competitor against the unrelenting expansion of The United States of America. So, they must has learned to take deeper control of the American Government in order to complete what they horrifically fail to do through Hitler.
Forever trying to stop the every day citizen from having the FREEEDOM to become a capitalistic tycoon? One that could stop their plans through political lobbing or popular vote? To what ends do these diabolical forces seek to enslave humanity into a camp of mindless working slaves? They are like unto the breeders of desolate the forgers of foolish self destruction. Because they seek power without proper democratic representation. Because they attain power from slavery and treason.
This unconstitutional power has been strategically used through the IMF to evolve a Global Economy. However, I do not feel that backing Dollars with precious metals will solve the problem. For Gods sake, what gives even a pinch of gold value? Just because it is so none corrosive?
It is in fact that this non corrosive metal represents a trade for labor or mental labor. Why subject a population to the scarcity of such precious metals? Our labor as a people can be represented through the US constitution in any way we chose. So, what is the accepted value of American labor? What is how we define the value of the Dollar?
A people, a tribe, a nation? What is it that they feel binds them together into a Union of commerce? Is it who has the most gold or who has the most SKILLS. Lets us not be once again burdened by the gold smith who capitalizes on the labors of those who actually do something for the local economy. Going back to the gold standard would be barbaric. The Feds realized this and totally inflated the concept. In other words, expanded upon what we the people had faith in. So, it is not the gold but what is proper representation that truly matters.
Let us evolve unto a new era of systems that represent the labor wether it be physical or mental as the value of our currency. With such a system one could make anything the medium of exchange. So, the medium of such a system must have a medium of symbols (engravings). Let these engraving and print be a symbol of We The People that can not be forged.
There is simply not enough gold to satisfy the every expanding humanity!. Holding onto the gold thing will only perpetuate the onslaught of history. Embracing a new constitutional representation of constitution currency through the recognition of common labor and common mental effort would be a greater step forward for the Kingdom. (America).
[Reply]
Pistol replies:
May 21st, 2009 at 9:54 pm
Douglas,
You’re onto something here. What ur aluding to in a way, is more of a utopian type society, which is a concept not able to be grasped by most people, due to lack of spiritual understanding. We place little to no value on many of the services individuals provide. We pay our atheletes and movie stars millions because of their marketing, yet we pay our teachers, nurses, and parents next to nothing in comparison.
So skill based reward is out the window for now, for as a nation or society, we have not evolved sufficiently to recognise this obvious dilemma.I would imagine that highly evolved societies (of which i cant think of any on earth other than indiginous humans), would not require any form of currency whatsoever. This can be easily confused with a form of communism, and on the surface it probably is, but the core fundamentals and reasoning for it is completely different.
There will come a time (hopefully) when humans no longer compete over scarcity. Abundance is the true nature of the universe and there is more than enough of everything to go round.
I agree with what u are saying regarding the FED, IMF, CFR (all the same creature), and they do need to be brought to an end.
Returning to a gold standard is not necessarily a backward step, especially if it aids in decentralizing power (which it may or may not achieve), and is also something that we used quite successfully in the past and is a familiar concept easily grasped by society. This wouldn’t be such a leap initially, at least until our entire economic system is overhauled/redeveloped.
There is alot of hype around the whole 2012 saga, with some very sound science accumulating evidence suggesting a cosmic event/consciousness shift, which may be exactly what humanity needs in order to survive.. It has been said that when our technology exceeds our maturity then we will cease to exist.. That time is upon us and we are at the crossroads. Something big is on the horizon.
Whether it results in humanities perception of itself changing, or not and removing the need for money, who knows. We can only deal with what we have now…
Something needs to be done to eliminate the FED and others and return the balance of power to the people. At this stage, anything would be an improvement. Gold, Silver, skill based assessments, whatever, just get rid of the criminals running the show now.. I believe that a time will come when people are rewarded based on the worthy contributions they make towards benefiting the whole.
Spiritual teachers, parents, educational teachers, health professionals/healers, etc, that contribute to our world far more than a corrupt politician or bank ceo, will one day see their selfless dedication rewarded.
I would like to hear more of ur ideas Douglas.
thanks
Peace I AM
P
[Reply]
Russia stops using the Dollar as its basic reserve currency. As the Federal Reserve creates obscene amounts of new money with nothing of value behind it, its purchasing power goes down, and other nations no longer want it. Neither should you.
Pravda 2009 May 19
for the full article: http://english.pravda.ru/business/finance/19-05-2009/107581-dollar_russia-0
[Reply]
“A government big enough to give you everything you want, is strong enough to take everything you have..”
- Thomas Jefferson
[Reply]
I was just now searching for about this when I found your blog post. I’m just visiting to say that I very much enjoyed reading this post, it’s really clear and well written. Are you going to write more on this? It looks like there is more depth here for later posts.
[Reply]
May 23RD, 2009 in an interview with C-Span, BARACK HUSSEIN OBAMA had a ‘revelation’, when he stated to America “WE’RE OUT OF MONEY”…. Is it possible? Has OBAMA finally woken up from this dream of his in re-shaping and re-defining America? This is a developing story found on: http://www.drudgereport.com and also on http://www.c-span.com
How can an individual, much even less an entire country prosper when you spend, spend, spend, especially on worthless earmark projects? Then try to generate tax revenue to bail yourself out of your self-inflicted deficits? What economist devised this theory? What role did the FEDERAL RESERVE play in this matter when they stole wealth from the American People? AUDIT THE FED RON PAUL, we have almost won the majority of the battle folks. The truth is about to come to light. Will we all be amazed? A lot will be!! And a few of us, have known all along about this economic crisis sustainability issue with our corrupted government officials. THANK GOD FOR RON PAUL, and those that stand alongside with him. Maybe there is HOPE yet for AMERICA!!
[Reply]
[...] Representative,Please co-sponsor and/or support H.R.1207, an effort to audit the Federal Reserve.Recently, it has come to light that there is little to no accountability to the people on the part [...]
China Buying Gold!
the Chinese are never going to publicly acknowledge they’ve been buying gold until they are done buying. That’s just how it is. That’s how any central bank would do it.
http://news.goldseek.com/GoldSeek/1178809561.
Gold Derivatives: The Tide Turns
There is a tide in the affairs of men
Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life
Is bound in shallows and in miseries.
On such a full sea are we now afloat,
And we must take the current when it serves,
Or lose our ventures.
Shakespeare, Julius Caesar, Act 4, scene 3, lines 218–224 (Brutus to Cassius)
http://www.goldensextant.com/commentary34.html#anchor376929
[Reply]
JPMorgan’s WaMu Windfall Turns Bad Loans Into Income
http://www.bloomberg.com/apps/news?pid=20601208&sid=aYhaiSOq_Tbc&refer=finance
[Reply]
[...] will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from [...]
Slave labor is over for the United States, the Slave Master left the country.
Now they want our tax dollars, the last they’ll get from our income taxes to use to pay the slaves they found in other countries, that will except less slave wages than they paid the US working class.
So,just turn off the lights and the natural gas and the gasoline, when you get done with us…..NAFTA left us for dead a long time ago.
Thanks for funding government agencies cuz we will need the food soon……that was kind of you to prolong our life in the USA a little longer.
If we last 4 years …….you’ll be jobless also!
[Reply]
Since reading the truth from this wonderful lady….No wonder I thought it was stupid to buy into the stock market! It all goes to the government,the stock broker and the CEO’s! And all they complain about is how much does a GM worker make per hour…and no one asks how much a stock broker or a CEO makes per hour do they? Or our congressman are asked either….or shamed , like they have done to our working class……..
The Real Deal: Dow Jones Up, Solari Index Down
http://www.scoop.co.nz/stories/HL0202/S00103.htm
Today, the Dow Jones is over 9,000, debt per person is over $100,000, and I think the Solari Index in my old neighborhood is 0 percent.
Life on the street ain’t sweet anymore.
To understand how this works, we need to understand “pop.”
It’s Not Just About Profit,
It’s About the Pop
Here is the part that is particularly hard for women. It took several times at our sheet of paper before Georgie understood what I was saying.
The power of narco dollars comes when you combine drug trafficking with the stock market.
The “pop” is a word I learned on Wall Street to describe the multiple of income at which a stock trades. So if a stock like PepsiCo trades at 20 times it’s income, that means for every $100,000 of income it makes, it’s stock goes up $2 million. The company may make $100,000, but its “pop” is $2 million. Folks make money in the stock market from the stock going up. On Wall Street, it’s all about “pop.”
The people who own a corporation make money on the stock going up. So a company has investors, with the most powerful investors typically being large institutions who are typically represented on the board of the company. The board is the group of people who decides what goes. The senior management officials who run the company day to day are also on the board. Most of the money they make comes from stock options that they get to encourage them to get the stock to go up for the investors. That means that what everyone who runs the company wants is for the stock to go up. The way to do that is to increase net income or to increase the multiple at which the stock trades.
So in the case of PepsiCo described above, if the management increases soda pop sales in a way that net income goes up by $100,000, the stock goes up $2 million. Now let’s say, the board and management do a whole series of things to attract new investors and improve the company’s image and, as a result, the stock starts trading at 22 times profits. Then, the stock value goes up even more. Whether increasing net income or increasing the multiple at which the stock market values the company profits, the board and the management are focused on making the stock go up. That is how their money works.
The winner in the global corporate game is the guy who has the most income running through the highest multiple stocks. He is the winning pop player. Like the guy who wins at monopoly because he buys up all the properties on the board, he can buy up all the other companies.
So if I have a company that has a $100,000 of income and a stock trading at 20 times earnings, if I can find a way to run $100,000 of narcotics sales by a few teenagers in West Philadelphia through my financial statements, I can get my stock market value to go up from $2 million to $4 million. I can double my “pop.” That is a quick $2 million profit from putting a few teenagers to work driving the Solari Index down in their neighborhood. Bottom line, I can make a lot of quick money on the stock going up and the Solari Index going down
OK, now what does this all mean for the Solari Index in Philadelphia? If I am a group of mothers in my neighborhood who want the Solari Index to go back up to a 100%, what’s stopping me?
Well, if the Department of Justice is correct about $500 billion-to-1 trillion of annual money laundering in the US, then about $20-40 billion should move annually through the Philadelphia Federal Reserve District.
Assuming a 20% margin for the BIG PERCENTAGE profits and a 20 times multiple on the stock of the companies that Dave and his investors and banking partners were using to launder the money, let’s look at how much of the stock market value would be “addicted” to the drug and money laundering profits flowing through the Philadelphia area.
The total stock market value generated in the Philadelphia area with $20-40 billion in narco retail sales would be about $80-160 billion. If you add all the things you could do with debt or and other ways to increase the multiples, and you could get that even higher, say $100-250 billion.
Assuming that there are 3 million people in the greater Philadelphia area, the total stock market value generated would average anywhere from $27,000-to-$85,000 per person. Imagine what would happen to the economy in Philadelphia if this stock market value suddenly disappeared because all the teenagers in Philadelphia stopped dealing or buying drugs?
Imagine what happens to your stock multiple if you are a Philadelphia corporate chieftain and you don’t run narco dollars or large purchases fueled by narco dollars through your financial statements and you don’t attract narco dollars to reinvest in your stock? What happens to your corporate income and your stock profit if the ones who invest narco dollars – accumulated over the last fifty years compounding at their magical compound interest – don’t like you? How is everyone in Philadelphia who loses money on your stock going down going to feel about you?
The Department of Justice says that we launder $500 billion -$ 1 trillion. Multiply those times a BIG PERCENTAGE cash flow profit margin. Now figure how much of that “income” gets run through the income statement of publicly traded banks and companies and multiply that number by the multiple of income at which their stocks trade.
Voila. I don’t know what your number is. All I know is that, as Ed Sullivan used to say, it is “really, really BIG.”
(continues…)
******
…come back tomorrow for Part 8 of Narco-Dollars for Dummies…
- AUTHOR NOTE: Catherine Austin Fitts, author of Scoop’s “The Real Deal” column, is a former managing director and member of the board of directors of Dillon Read & Co, Inc, a former Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush Administration, and the former President of The Hamilton Securities Group, Inc. She is the President of Solari, Inc, an investment advisory firm. Solari provides risk management services to investors through Sanders Research Associates in London.
[Reply]
Grand Theft Auto: How Stevie the Rat bankrupted GM
by Greg Palast
Monday, June 1, 2009
………..As Butch said to Sundance, who ARE these guys? You remember Morgan and Citi. These are the corporate Welfare Queens who’ve already sucked up over a third of a trillion dollars in aid from the US Treasury and Federal Reserve. Not coincidentally, Citi, the big winner, has paid over $100 million to Robert Rubin, the former US Treasury Secretary. Rubin was Obama’s point-man in winning banks’ endorsement and campaign donations (by far, his largest source of his corporate funding).
With GM’s last dying dimes about to fall into one pocket, and the Obama Treasury in his other pocket, Morgan’s Jamie Dimon is correct in saying that the last twelve months will prove to be the bank’s “finest year ever.”
Which leaves us to ask the question: is the forced bankruptcy of GM, the elimination of tens of thousands of jobs, just a collection action for favored financiers?
If you ran a business and played fast and loose with your workers’ funds, you could land in prison. Stevie the Rat’s plan is nothing less than Grand Theft Auto Pension.
It doesn’t make it any less of a crime if the President drives the getaway car.
[Reply]
Sean replies:
June 1st, 2009 at 3:50 pm
hahahahahaha no. The recession really hit the car industry. Check out the decline in auto sales this past year.
http://businomics.typepad.com/.a/6a00d8341cd0c953ef00e553ea57118834-800wi
You know there’s a real tangible world out there besides conspiracies you find online.. Your living in an imaginary bubble with jesus and his pals.
[Reply]
Sean replies:
June 1st, 2009 at 3:55 pm
you make a good argument for more regulations and larger government just like Thomas Hobbes.
http://en.wikipedia.org/wiki/Thomas_Hobbes#Leviathan
[Reply]
Matt replies:
June 1st, 2009 at 5:24 pm
I don’t quite understand what this article is exactly alluding to.
However, I assume the ‘Morgan’ this article is referring to is ‘JP Morgan’ and not ‘Morgan Stanley’, which would make the Jamie Dimon quote correctly attributed.
That being the case, JP Morgan is believed to be one of the largest lenders to the U.S. Auto Industry, which automatically means a bankruptcy is not exactly a collection action in any sense of the word.
Did I maybe misinterpret?
BTW, JP Morgan has repeatedly reiterated their desire to repay all of their TARP funding, and to lump them in with Citgroup does JPM a tremendous disservice and is totally unnecessary at best and very misleading at worst.
[Reply]
Here’s the entire article…..I don’t know if I am suppose to copy and past the entire thing or not…but he does’t have a website with it on it to lead you to his website……
Grand Theft Auto: How Stevie the Rat bankrupted GM
by Greg Palast
Monday, June 1, 2009
ant-farm_2
Screw the autoworkers.
They may be crying about General Motors’ bankruptcy today. But dumping 40,000 of the last 60,000 union jobs into a mass grave won’t spoil Jamie Dimon’s day.
Dimon is the CEO of JP Morgan Chase bank. While GM workers are losing their retirement health benefits, their jobs, their life savings; while shareholders are getting zilch and many creditors getting hosed, a few privileged GM lenders – led by Morgan and Citibank – expect to get back 100% of their loans to GM, a stunning $6 billion.
The way these banks are getting their $6 billion bonanza is stone cold illegal.
I smell a rat.
Stevie the Rat, to be precise. Steven Rattner, Barack Obama’s ‘Car Czar’ – the man who essentially ordered GM into bankruptcy this morning.
When a company goes bankrupt, everyone takes a hit: fair or not, workers lose some contract wages, stockholders get wiped out and creditors get fragments of what’s left. That’s the law. What workers don’t lose are their pensions (including old-age health funds) already taken from their wages and held in their name.
But not this time. Stevie the Rat has a different plan for GM: grab the pension funds to pay off Morgan and Citi.
Here’s the scheme: Rattner is demanding the bankruptcy court simply wipe away the money GM owes workers for their retirement health insurance. Cash in the insurance fund would be replace by GM stock. The percentage may be 17% of GM’s stock – or 25%. Whatever, 17% or 25% is worth, well … just try paying for your dialysis with 50 shares of bankrupt auto stock.
Yet Citibank and Morgan, says Rattner, should get their whole enchilada – $6 billion right now and in cash – from a company that can’t pay for auto parts or worker eye exams.
Preventive Detention for Pensions
So what’s wrong with seizing workers’ pension fund money in a bankruptcy? The answer, Mr. Obama, Mr. Law Professor, is that it’s illegal.
In 1974, after a series of scandalous take-downs of pension and retirement funds during the Nixon era, Congress passed the Employee Retirement Income Security Act. ERISA says you can’t seize workers’ pension funds (whether monthly payments or health insurance) any more than you can seize their private bank accounts. And that’s because they are the same thing: workers give up wages in return for retirement benefits.
The law is darn explicit that grabbing pension money is a no-no. Company executives must hold these retirement funds as “fiduciaries.” Here’s the law, Professor Obama, as described on the government’s own web site under the heading, “Health Plans and Benefits.”
“The primary responsibility of fiduciaries is to run the plan solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits.”
Every business in America that runs short of cash would love to dip into retirement kitties, but it’s not their money any more than a banker can seize your account when the bank’s a little short. A plan’s assets are for the plan’s members only, not for Mr. Dimon nor Mr. Rubin.
Yet, in effect, the Obama Administration is demanding that money for an elderly auto worker’s spleen should be siphoned off to feed the TARP babies. Workers go without lung transplants so Dimon and Rubin can pimp out their ride. This is another “Guantanamo” moment for the Obama Administration – channeling Nixon to endorse the preventive detention of retiree health insurance.
Filching GM’s pension assets doesn’t become legal because the cash due the fund is replaced with GM stock. Congress saw through that switch-a-roo by requiring that companies, as fiduciaries, must
“…act prudently and must diversify the plan’s investments in order to minimize the risk of large losses.”
By “diversify” for safety, the law does not mean put 100% of worker funds into a single busted company’s stock.
This is dangerous business: The Rattner plan opens the floodgate to every politically-connected or down-on-their-luck company seeking to drain health care retirement funds.
House of Rubin
Pensions are wiped away and two connected banks don’t even get a haircut? How come Citi and Morgan aren’t asked, like workers and other creditors, to take stock in GM?
As Butch said to Sundance, who ARE these guys? You remember Morgan and Citi. These are the corporate Welfare Queens who’ve already sucked up over a third of a trillion dollars in aid from the US Treasury and Federal Reserve. Not coincidentally, Citi, the big winner, has paid over $100 million to Robert Rubin, the former US Treasury Secretary. Rubin was Obama’s point-man in winning banks’ endorsement and campaign donations (by far, his largest source of his corporate funding).
With GM’s last dying dimes about to fall into one pocket, and the Obama Treasury in his other pocket, Morgan’s Jamie Dimon is correct in saying that the last twelve months will prove to be the bank’s “finest year ever.”
Which leaves us to ask the question: is the forced bankruptcy of GM, the elimination of tens of thousands of jobs, just a collection action for favored financiers?
And it’s been a good year for Señor Rattner. While the Obama Administration made a big deal out of Rattner’s youth spent working for the Steelworkers Union, they tried to sweep under the chassis that Rattner was one of the privileged, select group of investors in Cerberus Capital, the owners of Chrysler. “Owning” is a loose term. Cerberus “owned” Chrysler the way a cannibal “hosts” you for dinner. Cerberus paid nothing for Chrysler – indeed, they were paid billions by Germany’s Daimler Corporation to haul it away. Cerberus kept the cash, then dumped Chrysler’s bankrupt corpse on the US taxpayer.
(”Cerberus,” by the way, named itself after the Roman’s mythical three-headed dog guarding the gates Hell. Subtle these guys are not.)
While Stevie the Rat sold his interest in the Dog from Hell when he became Car Czar, he never relinquished his post at the shop of vultures called Quadrangle Hedge Fund. Rattner’s personal net worth stands at roughly half a billion dollars. This is Obama’s working class hero.
If you ran a business and played fast and loose with your workers’ funds, you could land in prison. Stevie the Rat’s plan is nothing less than Grand Theft Auto Pension.
It doesn’t make it any less of a crime if the President drives the getaway car.
******
Economist and journalist Greg Palast, a former trade union contract negotiator, is author of the New York Times bestsellers The Best Democracy Money Can Buy and Armed Madhouse. He is a GM bondholder and card-carrying member of United Automobile Workers Local 1981.
Palast’s latest reports for BBC Television and Democracy Now! are collected on the newly released DVD, “Palast Investigates: from 8-Mile to the Amazon – on the trail of the financial marauders.” Watch the trailer here.
[Reply]
Matt replies:
June 1st, 2009 at 6:17 pm
Interesting, thank you for the article.
Didn’t the UAW agree to this proposal? (for the first of like 9,000 articles)
http://news.bbc.co.uk/1/hi/business/8070072.stm
I was under the impression that JP Morgan has been very tight-lipped on their exposure to the auto industry (and various suppliers) via lending so I would be very interested to see how he arrived at this $6B number. There has been speculation at both much more and possibly much less, where Mr. Dimon stated a $1B number on one of his conference calls – with taking hedges into account. In summation, total exposure for JPM is still a large unknown.
As for Citigroup, I would be suprised if they even knew until after bankruptcy court finished carving what their exposure was.
Seems a little biased given there is still sooooo much to sort out.
[Reply]
Sean…….
Are you ready to buy a GM car made in China and pay $60 grand for it? I hope you have one of those elitest’s jobs….cuz all middleclass is being wiped out…..I know I will never buy another GM or Chrysler or Fiat…again….what those CEO’s, just did to our country is awful.
The goal of a few for the masses is to wipe out the middle class and to maintain the wealth for the 5%. And to store it in the World Central Banks.
http://www.globalissues.org/article/26/poverty-facts-and-stats
Poverty Facts and Stats
* by Anup Shah
* This Page Last Updated Sunday, March 22, 2009
* This page: http://www.globalissues.org/article/26/poverty-facts-and-stats.
* To print all information e.g. expanded side notes, shows alternative links, use the print version:
o http://www.globalissues.org/print/article/26
1.
Almost half the world — over three billion people — live on less than $2.50 a day.
At least 80% of humanity lives on less than $10 a day.Source 1
2.
More than 80 percent of the world’s population lives in countries where income differentials are widening.Source 2
3.
The poorest 40 percent of the world’s population accounts for 5 percent of global income. The richest 20 percent accounts for three-quarters of world income.Source 3
4.
According to UNICEF, 25,000 children die each day due to poverty. And they “die quietly in some of the poorest villages on earth, far removed from the scrutiny and the conscience of the world. Being meek and weak in life makes these dying multitudes even more invisible in death.”Source 4
[Reply]
Sean replies:
June 4th, 2009 at 3:07 pm
I’m not going to pay 60 grand for a hummer period. China can choke on that all they want..
Did you know we are breeding a super strain of rice that is easier to harvest and yeilds a much much larger quantity?
More than 50% of the world is dependent on rice and this new breed will help feed 100 million people.
I’m sure that we would like to help other countries from starving, but people think it could get too carried away and make countries dependent on us for them to live.
[Reply]
What affects population growths and declines, anyway?
While the basic factors affecting population growths and declines are obviously found in births and deaths, there are also additional socioeconomic and cultural factors affecting birth and death rates, such as:
* Fertility (affected by the space of time between children, which itself is affected by cultural norms or cultural taboos as well as consumption patterns)
* Migration (which can influence regional patterns of growth and decline, as a population where many migrate away can lead to a lower population and a reduced pressure of population. Rising birth rates may result if marriages then occur earlier, which is likely. If more men migrate, there are fewer women that will marry which could also lower birth rates instead)
Socioeconomic factors often affect fertility rates and migration patterns themselves, such as (but not limited to):
* Removing or reducing land rights
* Increasing concentration of ownership of land
* Economic/trade policies that increase poverty (such as Structural Adjustment policies that can result in):
o Lack or reduction of education
o Lack or reduction in health care
* Lack of rights for women
* and so on.
http://www.globalissues.org/article/199/population-numbers#Whataffectspopulationgrowthsanddeclinesanyway
[Reply]
Be The Solution!
When we End the Fed, the question we must first answer is, What will we replace it with? Do we end it only to bring in the North American Union Amero? OR One World Economy? This is going to be a long drawn out battle. Our very freedom is at stake!
http://www.warnthepeople.org/the-open-forum.html
[Reply]
Paying Refugees MORE of OUR Social Security Funds than WE GET!!!
It is interesting to note that the federal government provides
a single refugee with a monthly allowance of $1,890. Each can
also obtain an additional $580 in social assistance, for a total of
$2,470 a month. Compare this to a single pensioner, who after
contributing to the growth and development of America for 40
to 50 years, can only receive amonthly maximum of $1,012 in
old age pension and Guaranteed IncomeSupplement. Maybe
our pensioners should apply as refugees!
Consider sending this to all your American friends, so we can all
be ticked off and maybe get the refugees cut back to $1,012 and
the pensionersup to $2,470. Then we can enjoy some of the money
we were forced to submit to the Government over the last 40 or 50
or 60 years. Please forward to every American to expose what our
elected politicians have been doing over the past 11 years – for the
immigrant -and to the over-taxed American. Meanwhile, a member of
congress receives a full pension for only working a single term of
two years!!!
Cut back to $1,012!!!! The $2,470 they get is 3.67 Times what an
American on SSI gets.
SEND THIS TO EVERY AMERICAN TAXPAYER YOU KNOW
[Reply]