The Eagle Forum Presentation

HAND OUTS –  

http://www.usagold.com/gildedopinion/buckler2.html

http://www.lewrockwell.com/orig9/polleit2.html 

http://www.geocities.com/rebornempowered/mandrake/mandrake.htm

http://www.lewrockwell.com/orig10/stansberry1.html

“Hi everyone – my name is Denny Hunt and Orlean asked me to give a presentation on the economy and our monetary system. She heard I was knowledgeable on the subject and even though I am no expert I will certainly do my best to answer your questions and please feel free to interrupt me if you have any.

A little about myself – I am an engineer and I work for Air Monitor as a Sales Application Engineer. Air Monitor is a local company that manufactures and sells airflow measurement instruments.  I am married 24 years to Jennifer, no kids and we live in Sebastopol with two border collies, two cats, two mules, some sheep and a bunch of chickens.  I am a 4^th generation Californian and 3 generations lived here in Sonoma County. I graduated from the California Maritime Academy in 1984 with a degree in Marine Engineering and I used to work as a Chief Engineer for the Monterey Bay Aquarium Research Institute on their two research vessels the Pt. Lobos and the Western Flyer which are support ships for remotely operated deep sea submarines.  I have many interests and hobbies.  I was a successful painter for a few years and I painted mostly seascapes.  I also am a vegetable gardener and I ride a motorcycle to work.  My wife and I do home church with another family and I have been a Christian since 1997. I have a blog where the tag line is “Waking up before the storm” where I cover mostly the same subject matter we will discuss tonight with an emphasis on preparation.

What I think I am good at is looking at the big picture and getting a fairly accurate idea about why certain things are happening.  I have spent the last 12 years researching, on and off, and sometimes in a rather haphazard way, history, world events, and our economy, our monetary system, politics and Christian Apologetics.  I think I am slowly getting better at weeding out and recognizing bad information, but I have had very little experience with public speaking so please forgive me in advance. 

Also I should point out that I rely heavily upon the writers at lewrockwell.com, mises.org and antiwar.com,  Alex Jones’ website prisonplanet.tv , and the writers Webster Tarpley, Dr. Stanley Monteith, Dr. Dennis Cuddy, Devvy Kidd, William Grigg, Justin Raimondo, Bob Higgs, Vin Sprynowicz, Gary North, Alan Stang and there are a few others.  I’ve also read many books on these subjects over the last 12 years by authors such as G. Edward Griffin, Murray Rothbard, Lysander Spooner, Anthony Sutton, Michael Ruppert, William Engdahl, James Perloff, Gary Kah, William Clark, John McManus, Nafeez Ahmed, David Ray Griffin and several others. With the internet and a little wise discernment there is absolutely no excuse for being uninformed.  In fact it is my opinion that one day historians will look back on this age if information and call us the most deluded population in the history of the world.  My introduction to much of what I will speaking about was from G. Edward Griffin’s outstanding book – The Creature from Jekyll Island which I read back in 1997.

So it seems everyone has an opinion about the economy, but very few seem to have a very good grasp of our monetary system.  If you don’t know about money and how it is created, then it is difficult to have supportable opinions about the economy. This is where we will start.  I will explain some basic concepts about money and then I will explain fractional reserve banking and fiat money.

With human interaction we have exchanges. With these exchanges we each have our own needs and perceptions of value. 

The barter system preceded the creation of money.  The barter system had two flaws: coincidence of needs and the complexity and orchestration of indirection exchange.  Indirection exchange is used when you don’t have what I want, but someone else does. With that third person we can complete a beneficial exchange. So to illustrate, Orlean has apples and will accept my junk silver, but I want potatoes. Phil will accept apples from Orlean in exchange for his potatoes.  So in this scenario, through coincidence of wants among three people we have an indirect exchange.

Murray Rothbard writes:

“Because relatively more marketable commodities will be demanded, not merely on account of their intrinsic usefulness, but also because people will desire them as media of exchange, such commodities will become acceptable by ever more people, and hence they will grow even more marketable. The process builds on itself, until eventually one or more commodities become generally accepted media of exchange, i.e. money. A money commodity tends to be highly divisible, easy to transport, durable, and has a convenient exchange value per unit weight. Historically, gold and silver have often served as money.”

Another example of money is the unit of labor as typified in the Marxist economic system.  I saw this description; that labor is money, recently, in a rather bizarre defense of our current monetary system.  Labor denominated in units of time still must evaluated, such that a ditch digger and a dentist may have different values assigned to their respective one hour of labor.  This is subjective and perhaps workable in a barter system, but never so well as when a medium of exchange or money is introduced into the exchange.

And so you can easily see why gold and silver became the preferred material to be used as money.

Gold and silver are commodities just like wheat, coffee, sugar, tobacco and oil.  They all have intrinsic value and are divisible.  Other forms of money can and have been used.  These would be representative forms of money such as shells or rocks that would represent some fixed value of a desired good or commodity.  The problem with that approach though is the ease of counterfeiting and the fact that the object itself has no intrinsic value.  In the final analysis, the important thing to remember that money is a commodity. It is not an abstract unit of account that is separate from value; it is not a token; it is not a claim on a collection of persons; and it is not guarantee of fixed prices.  It is a commodity serving as a medium of exchange and it is bought and sold like any other.

What happened in earlier times, primarily in Europe, is that banks eventually formed out of the businesses that minted and supplied the gold and silver coins.  The minted coins became a known standard in over fairly wide areas where trade was conducted. Folks seemed open to the idea that they could use paper receipts for an amount of gold or silver that was held for them by these early banks. With the receipts they could trade for goods and get their gold or silver from the bank when they needed it rather than carry it around with them all the time.  The individual receipts could be issued for different amounts of gold and silver to make trade easier. So these Europeans could trade receipts instead handling the actual metal or heavy bags of gold or silver coins.

Bankers soon realized that they could easily issue more receipts than they had in physically stored gold & silver and no one would be the wiser. As long as everyone at the same time did not show up to get all of their gold and silver, also known as a “run on the bank,” the bankers would be safe and could create a small amount of extra money for themselves and their friends.  Greedy bankers would eventually get caught and the thing would fall apart and then it would start all over again.  Eventually, it got much more sophisticated.  This is what is called fractional reserve banking; more receipt money in circulation than what actually exists in the form of real money. 

There were other methods used by the bankers and colluding governments to improve their profitability and these included mixing the metals with non-precious metals, slowly reducing the sizes of the coins, issuing non-precious metal coins that would eventually get smaller. All of this is a great study, but the next subject involves government or the state’s role.   That is when we have value by decree from some authority, usually the government, which also known as fiat.

Fiat currency is created when a state declares that something with worth or not has a certain value.  In its purest form, fiat currency has nothing backing it.  Its value is established by pronouncement of the government and backed, in the final analysis, by a sword to your neck or a gun to your head. 

I today’s interesting times and here in the US we have both, fractional reserve currency and fiat Federal Reserve Notes; money that is backed by nothing and being printed with abandon at unprecedented levels by the Federal Reserve.

What is the Federal Reserve?  The Federal Reserve is a private banking cartel that was established in 1913.  It was established after a long and hard battle with East Coast banking establishments and British and European bankers against the US government and the American people to establish a central bank.  Andrew Jackson successfully prevented its establishment.  But with the Lincoln Presidency and the Civil War the situation degraded and finally, with the great assistance of Col. Mandell House who was President Wilson’s closest advisor, the legalization of a central bank was forced through Congress and the Executive office. Mandell House and Nelson Aldrich, a Senate Republican leader, and several of the banking elite, including Paul Warburg from the Rothschild banking dynasty from England and France formed the plan to convince the Congress and push through the legislation that established the Federal Reserve in 1913 under the Glass Owens Bill which was previously called the Aldrich Plan.  Wilson would later regret his part in this and feared that he was instrumental in the destruction of his country.  The story of its establishment and its subsequent machinations against the American people is best documented in Griffin’s book The Creature from Jekyll Island.  Jekyll Island is off the coast of Georgia, was owned by the Morgan banking family and that is where the famous secret meeting took place to implement the final and successful plan to establish an American central bank in 1910.  The other author that I would recommend on the subject is Murray Rothbard.  The prequel to Griffin’s book is called the Coming Battle by MW Walbert.

A central bank can easily implement fractional reserve banking and fiat currency.  At the time it was established the US Dollar had a value relative to gold; at bout $20 per oz. This hard money gold standard was abandoned in two phases: once in 1933 when the US Dollar could no longer be redeemed in gold by US citizens and then in 1971 with the failure Breton Woods agreement which allowed foreign entities to trade their Federal Reserve notes for gold.  After 1971 the preeminence of the US Dollar was maintained as the world’s reserve currency by a phenomenon known as petro-dollar recycling.  This was only possible by virtue of the fact that the US Government had the largest and most dangerous military in the world.  Henry Kissinger was assigned to implement the system and he traveled to Saudi Arabia to present to the OPEC countries an offer that they could not refuse.  All crude oil was to be sold for only US dollars.  All oil poor countries, like China and most of Europe or those with no oil, like Japan, could only purchase oil by converting their currencies to the US Dollar.  Now these countries and the OPEC countries as well had a very important reason to purchase US debt.  This situation has remained up to this date.  Through the Federal Reserve, the IMF and the World Bank the banking elite now have almost the entire planet in the grips of fractional reserve banking and fiat currencies.  All of the third world economies are essentially slaves to this economic system.  The US Dollar is fiat, but its value has been established by threat of international destabilization, bombs and war and thus the great energy resource, the engine of modern economies – oil. 

It is interesting to note that with the mechanism of fractional reserve/fiat monetary systems that one of its functions is to slowly rob the wealth from the majority of the population.  In 1913 just before the establishment of the Federal Reserve the Average Income was $1,296.00; a Loaf of Bread was $.06; a Gallon of Gas $.12; Gallon of milk $.36; New Car $490.00; New House $3,395.00 and the Dow Jones Index was 78.  A dollar from 1950 is now worth 12 cents.  Slow, creeping and incessant inflation has robbed everyone, but the super wealthy.

In G. Edward Griffin’s book The Creature for Jekyll Island he explains the fractional reserve system used by the Federal Reserve:

“The entire function of this machine is to convert debt into money. It’s just that simple. First, the Fed takes all the government bonds which the public does not buy and writes a check to Congress in exchange for them. (It acquires other debt obligations as well, but government bonds comprise most of its inventory.) There is no money to back up this check. These fiat dollars are created on the spot for that purpose. By calling those bonds “reserves,” the Fed then uses them as the base for creating nine (9) additional dollars for every dollar created for the bonds themselves. The money created for the bonds is spent by the government, whereas the money created on top of those bonds is the source of all the bank loans made to the nation’s businesses and individuals. The result of this process is the same as creating money on a printing press, but the illusion is based on an accounting trick rather than a printing trick.

The bottom line is that Congress and the banking cartel have entered into a partnership in which the cartel has the privilege of collecting interest on money which it creates out of nothing, a perpetual override on every American dollar that exists in the world.

Congress, on the other hand, has access to unlimited funding without having to tell the voters their taxes are being raised through the process of inflation. If you understand this paragraph, you understand the Federal Reserve System.”

HANDOUTS:  Here are two hand- outs: one that shows the Fed’s transition from what could be called real money (or at least something close to it) to this Federal Note. And the other is a flow chart that shows the details of money creation in the Federal Reserve monetary system.

I often am amazed that economists lamented that Americans did not save when it seems perfectly logical to me that there is no point to saving something that continually loses value.  Better to spend it when it is in hand and get something that might at least give you some use or even better, spend it on gold and silver.

A one ounce gold coin spent 100 years ago would buy you a nice man’s suit and the same 1 ounce gold coin will do the same today.

In Dr. Edwqin Vieira’s landmark 309 page book: “The Monetary Powers and Disabilities of the United States Constitution” from 1982 (27 years ago!) on page 295 he writes:

“From the perspective of constitutional law, the present monetary system is a disaster. In no important particular do the powers the national government claims today find sanction in history, policy, language, or even proper judicial interpretation of the Constitution. To the contrary: Those powers so offend any historically consistent construction of the supreme law as to be, not simply unconstitutional, be self evidently anti-constitutional.  Any attempt to amend the nation’s monetary system in the direction of constitutional ends, therefore, must ruthlessly expose, categorically repudiate, and absolutely extirpate the monetary usurpations and tyranny that Congress and the Executive have perpetrated, and the Judiciary has condoned, during the last half century.”

I am an advocate of what might be called hard money; the Austrian school of economics as explained on the mises.org and lewrockwell.com websites and also from authors like Murray Rothbard and Von Mises, Hayek and others.  They have accurately predicted much of what we see going on today and they could be called the opposite of the popular Keynesian school of economics – you know the ones that tell us we can spend our way into prosperity.

Here is a good example from one of the writers from the Austrian school of economics and what he has to say about our paper money system. This first part is from a review of Ethics of Money Production by Jörg Guido Hülsmann, professor of economics at the University of Angers in France and the author of Mises: The Last knight of Liberalism:

“He takes on the “stabilization” advocates to show that government management doesn’t lead to stability but to inflation and instability. He goes further to argue against even the theoretical case for stabilization, to say that money’s value should be governed by the market, and that that the costs associated with private production are actually an advantage. He chronicles the decline of money once nationalized, from legally sanctioned counterfeiting to the creation of paper money all the way to hyperinflation.

In his normative analysis, the author depends heavily on the monetary writings of 14th century Bishop Nicole Oresme, whose monetary writings have been overlooked even by historians of economic thought. He makes a strong case that “paper money has never been introduced through voluntary cooperation. In all known cases it has been introduced through coercion and compulsion, sometimes with the threat of the death penalty. … Paper money by its very nature involves the violation of property rights through monopoly and legal-tender privileges.”

The book is also eerily prophetic of our times: (this is from Hülsmann’s book)

“Consider the current U.S. real-estate boom. Many Americans are utterly convinced that American real estate is the one sure bet in economic life. No matter what happens on the stock market or in other strata of the economy, real estate will rise. They believe themselves to have found a bonanza, and the historical figures confirm this. Of course this belief is an illusion, but the characteristic feature of a boom is precisely that people throw any critical considerations overboard. They do not realize that their money producer-the Fed-has possibly already entered the early stages of hyperinflation, and that the only reason why this has been largely invisible was that most of the new money has been exported outside of the U.S… Because a paper-money producer can bail out virtually anybody, the citizens become reckless in their speculations; they count on him to bail them out, especially when many other people do the same thing. To fight such behavior effectively, one must abolish paper money. Regulations merely drive the reckless behavior into new channels”

So it is probably quite obvious by now that I am against the Federal Reserve and I think I could be safely labeled as an Anarcho-Capitalist.  I think government has virtually no redeeming qualities and just about everything they do could be done much better in the private sector in an unfettered market using sound money.  If you have some doubts about my conclusions in this regard I would invite you to do a search on R. J. Rummel and the term “Death by Government.” You can also call me a conspiracy theorist, but I think it is useful to think of William Grigg’s definition while doing so: a “conspiracy theorist” is anyone who draws unacceptable anti-government conclusions from politically inconvenient facts. In other words, I am very unrealistic in what I want, but I think the opposite is true when it comes to what I see.

What do I see?

I see the purpose of this central bank and the purpose of this monetary system. I see the purpose of the Federal Reserve. Some trace its inception back to the Illuminati, some to the banking elite in Europe and some say it is Jewish conspiracy, each has their own arguments and some you may find more convincing than others.  In any case, money is the tool, not the goal and the goal is a one world government and this is has been a repeating theme throughout recorded history; from ancient Biblical times right up to present times, history has essentially been the story of powerful people and their attempt’s to rule the world.  It is easy to forget this or never have this fact in our awareness because most of us are products of government schools.  We are taught a version of history that is largely correct, but full of omissions and often we come away with the idea that history is nothing more than a series of accidents.  Nothing could be further from the truth and the old adage to follow the money is indeed good advice.  Money is what makes things happen and those with the money are the ones who decide what happens and what does not happen. Again money is ONLY the tool. 

Too many times it is confused with the goal.  The goal is domination of the world.

So Federal Reserve in my opinion was established with this goal in mind.  This central bank has created booms and busts and has been complicit in funding both sides of the great wars and the undeclared wars.   It is important to remember that this central bank’s shareholders are essentially domestic and foreign entities with no national allegiances

Fiat money is a fantastic tool.  With it a central bank can control governments, politicians, population densities, art, popular culture, real estate values, industrial production, education, infrastructure, advertising, resources and distribution of resources, food production, energy, borders, military industries, wars, the cost of money and religion.  The banking elite of current times are experts in all of these areas. 

 It is important to remember the direction of the country in the long track of history over the last 100 years and to realize that the political divisions within this country were largely manufactured by the banking elite for public consumption.  The overall direction of the US Nation has never really deviated from the goal of a one world government. The differences between Republicans and Democrats are largely meaningless and neither has ever served as a true path of departure from the goal of a one world government.  They were essentially two sides of the same bad coin.  This method, used in many areas of politics, academia and economic policy, is called the Hegelian Dialectic where two sides of an issue are defined, promoted, funded and resolved with a preconceived outcome produced as the resolution of the two apparent sides of an issue; in short, thesis, anti-thesis and synthesis.  Each synthesis is a step in the creation of the one world government and economic system.

Key to our understanding of the banking elite’s control of government is the fact that almost every US President has been surrounded by Council of Foreign Relations top tier members not too long after its inception in 1921.  The Council of Foreign Relations’ goal is a one world government.  It is a creation of the Rockefeller dynasty. David Rockefeller was quoted “This present window of opportunity, during which a truly peaceful and interdependent world order might be built, will not be open for too long – We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.” Just about everything the John Birchers have ever written concerning the CFR is true from my research.

With fiat money as the tool for control they can set up conditions that are favorable to the establishment of a global government and even a global religion.

The central bankers knew that a strong Christian culture would make their job extremely difficult and they also knew that by attacking Christianity directly it would only grow. They did not want to repeat the mistakes of the Roman Empire so they decided to be friends with the churches and let them incorporate as non-profits so there congregations could donate money and then write the donations off on their taxes.  In exchange, the only thing a church pastor needed to do is to sign IRS Form 1022 whereby they promise not to get involved in politics. This became acceptable due to erroneous notions regarding separation of church and state and developed by the bought and paid for political, academic and court institutions. Jefferson’s now famous letter was misinterpreted by courts and academia promoted the idea that the First Amendment was bilateral instead of unilateral as it was written.  So the preachers can’t campaign for politicians or encourage their congregations to do so and they can’t collect money to support legislation or encourage their congregations to do so. The regulation is only enforced as needed to serve the state’s given purposes at any time.  By granting favors, using money as the tool, the state has silenced the churches. The pastors, priests and ministers are essentially agents of the state and they now have profitable corporations to run.  The churches had by definition, become creatures of the state and the existing Christian culture was no longer a threat to the power broker’s long term plans.

A poignant example of this arrangement in play was during the so called Christian administration of the younger Bush where for the first time in US history a Christian Church was shut down and liquidated by the Federal Government.  What was the crime?  Pastor Gregg Dixon of the Indianapolis Baptist Temple studied the issue of church incorporation and decided to unincorporate.  The IRS and the Federal attorneys decided to make an example with this Church sending a chilling message to other Christian Pastors who may have been thinking about giving their churches back to God.  Federal Marshals carried Pastor Dixon out on a stretcher and sold off all the church assets to satisfy the taxes they claimed were due.

For those of us who claim to be aware and those of us who may claim to have a realistic world view we should be accurate in identifying those who control the banking elite. In my opinion this would be the Bilderbergers which is an association of super wealthy players that have semi-secret meetings in various countries primarily in Europe and North America. 

The best sources for information about the Bilderbergers are Daniel Estulin and Alex Jones. Daniel Estulin writes in his book; “In 1954, the most powerful men in the world met for the first time under the auspices of the Dutch royal crown and the Rockefeller family at the luxurious Hotel Bilderberg in the small Dutch town of Oosterbeck. For an entire weekend, they debated the future of the world. When it was over, they decided to meet once every year to exchange ideas and analyze international affairs. They named themselves the Bilderberg Group. Since then, they have gathered yearly in a luxurious hotel somewhere in the world to try to decide the future of humanity.”  The Times of London in 1977 called the Bilderbergers “a clique of the richest, economically and politically most powerful and influential men in the Western world, who meet secretly to plan events that later appear just to happen.”  Some of the members are Bill Clinton, Paul Wolfowitz, Henry Kissinger, David Rockefeller, Zbigniew Brzezinski, Tony Blair and many other heads of government, businessmen, politicians, bankers and journalists from all over the world. Invitees have included Rupert Murdock,  Conrad Black, Viacom (parent company of CBS) CEO Sumner Redstone, the Washington Post’s Katherine Graham (now deceased), Washington Post columnists Jim Hoagland and Charles Krauthammer, New York Times Editor Arthur Sulzberger and columnist Thomas L. Friedman, William F. Buckley, Jr., and Bill Moyers.

As for world domination, the two wild cards are Russia and China and to a lesser extent perhaps Brazil and India.  Everything else, as far as I can tell seems to be well in hand for these power brokers on steroids.  The plan that will probably be followed is documented in Zbigniew Brzezinski’s book The Grand Chessboard.

So where are we today?  We are witnessing the intentional destruction of the American people such that they would eventually find the idea of a one world government a plausible and desirable thing.  This destruction will be implemented primarily by ruining the economy, wiping out the middle class and creating a state of widespread fear and despair.

But why destroy the American people?  Currently they are one of the biggest impediments to establishing a New World Order.  Americans are a big part of the global economy and despite the fact that the US dollar is just about finished it is still the world’s reserve currency. Also the American population now fills the ranks of the world’s largest police force.  Americans have nationalistic tendencies and they are a bit too religious in some areas.  Well fed and well armed people are difficult to control.  The power elite have several methods for overcoming this impediment.  One of the best ways is to establish and fund an external enemy. An external enemy is a sure way to incite fear and galvanize the population to support certain actions that would otherwise never be considered.  This we see 9-11 and the Patriot Act, Homeland Security and all of the other specious and unconstitutional measures that have stripped us of our God given rights.  Another way is to destroy cultural and political institutions that promote national unity and national pride.  TV is the most effective instrument for this type of destruction.  There is a soft way and a hard way to accomplish this destruction and they are preparing and are prepared to use either or both as the situation warrants or situations warrant.  The soft way is by use of methods developed the Rand Corporation and the Tavistock Institute for population control by use of the mainstream media, academia, non-profit corporations, think tanks, pharmaceuticals, health care, education and probably other more  subversive and draconian methods. The hard way is by use of the police state through the declaration of marshal law, where we have gun confiscation, false flag operations, domestic actions in the war on terror, further implementation of mandatory civilian volunteerism, the TSA/restriction on travel, the continuing promotion of illegal immigration and controls of resources including water, food, home farming and fuel. With Marshal Law will see the abandonment of the current legal and court systems and the threat of imprisonment and actual imprisonment in FEMA camps.

To ruin the economy all the central bank needs to do is to massively increase the money supply.  AS noted earlier this has already been done.

Massively increasing the money supply which is the direct cause of inflation is being accomplished through these bailouts and the nationalization of the financial sector and certain corporate entities such as GM.  Also this is accomplished through increases in deficit spending.  Money is created by the Fed through the process of lending – it is a ledger system whereby once the money is lent it is also created thus more money goes into circulation where the benefactors are the first to receive it. Later after the money has been in circulation, the adjustment occurs where purchasing power is lost and the middle class and the poor suffer. It is accurate in every sense to refer to the US dollar; also known as Federal Reserve notes as a debt instrument. 

In this case, we need to look at two factors, one is the magnitude of this increase and then the timing of when massive inflation or perhaps hyperinflation actually hits.  Some history is needed so we can get a sense of magnitude – in WWI the increase in borrowing and the resulting money supply went to $2.8 B, all the other banking crisis from 1919 to 1969 never exceeds $1.5B, the crisis in 1972 with the failure of the Breton Woods agreement was $3.3 B, the savings and loan crisis it went to $8 B, and the Y2K precautionary spending brought in another $3.5B, so from 1919 to 2007 the borrowing and resulting increase in the money supply never exceeded $8B. Now we will deal with the great crash of 2007 and 2008: by the end of 2007 another $15.4 B, Jan 2008 $45.7B, Feb $60.2B, March $94.5B, now we are at 10 times the record for the entire period between 1919 and 1969, ten times; where the value of a dollar from the early 1900’s is now worth less than 5 cents and gold from $20 up to right around $1,000 per oz.  In April 2008, $135.4B, May $155.8B, June $171.3B, September $290.1B, September $648.3B, and in November 2008 $698.7B.  The lending and increase in the money supply has grown to even higher amounts as of this current date. A recent article cited by one of hard money advocates from the Austrian economic school claims that the aggregate world wide loss of capital now stands at 50 trillion in US Dollars.  This loss is staggering, but the response to it as directed by the banking elite will ensure widespread economic failure on scale not seen in history.

Now we can see the magnitude.

Now the timing – when will this massive inflation hit?

This is one of the better assessments that I have read. It is by Bill Bonner from lewrockwell.com:

“Right now, central banks are fiddling faster than Nero. The total cost alone for all this fiddling in the United States is something on the order of $14 trillion. Under these circumstances, you’d think inflation was a sure thing…and that the dollar was a goner.

Not so fast. Inflation is not that easy to create or control. It could be months – or years – before consumer prices rise. As we explained last week, people who expect consumer prices to rise immediately could be deeply disappointed.

For one thing, the depression is sucking money out of the system even faster than the feds are putting it back in. It’s that old “paradox of savings” issue. When an economy goes into a downswing, people save money. This causes prices to fall…making saving more valuable. Then, people save even more. Instead of circulating, money goes into pockets, vaults, and mattresses; saved for a rainier day…and lower prices.

For another thing, “the money multiplier… has collapsed,” as one economist put it in the Financial Times. Normally, when banks get more money they “multiply” it by lending out even more. That’s how fractional reserve banking is supposed to work. But now, the banks aren’t lending. They’re rebuilding their own coffers…just like ordinary citizens. Besides, they’re afraid to lend – who knows what the collateral will be worth when this depression gets finished with it! The multiplier has forgotten how to do arithmetic.

And for still another thing, there’s what Keynesian economists call an “output gap.” What this means is that the economy is functioning at less than full capacity. In fact, Goldman Sachs estimates this “output gap” at 8% of global GDP. As long as industry can provide more things – using its surplus capacity – without the need for major additional inputs, it has no pricing power. People can buy…but it won’t cause prices to rise.”

HANDOUT:  Here is an article by Thorsten Polleit about Inflation: it also shows us the magnitude of the increase in the money supply and he concludes this article by stating “that the forces and instruments that can pave the way towards hyperinflation are already in place and gaining strength by the day.” And another one from Porter Stansberry of Stansberry & Associates Investment Research LLC.   He writes: “By the time Obama leaves office, you will not be able to exchange dollars for any sound currency in the world without permission from the U.S. government. The price of gold will be well over $2,500 per ounce. Most importantly, commodities will no longer be priced in dollars either, but instead in the currencies of the leading producer. Americans haven’t experienced anything like this since the Great Depression.”

So to recap, this is what I see:

Cheap money, which is the same as artificially low interest rates, caused a bubble of fake prosperity.  Too many of us took the bait and we, businesses, the real estate sector, stock investors, pension funds and local governments are now seeing our portfolios diminished or finding it hard to make the payments.  The growth was unsustainable. What the banking elite are working on right now is massive increase of the money supply and massive misallocations of additional capital derived through additional debt.  This eventually will cause inflation.  With the collapse of real estate, the commercial sector and the resulting unemployment, massive inflation, once it hits, will cause poverty and eventually shortages.  Because with inflation, the government will impose price controls in response the public outcry and this will then cause shortages for just about everything and this will hurt us because essentials will also be in short supply.  Our wealth will be wiped out.

Civil unrest will increase and then, in response, the government will unleash the police state by calling a state of emergency and declaring marshal law.  The Federal government’s new program of forced volunteer organizations, food laws and other draconian measures, most of which are already in place, will be used to further control an unruly and scared population.  It is also likely at some point, another false flag operation will occur to galvanize the statists and fascists within our population so the military will get another in-flux of people and money.  Also, it is likely that before 2012 another major war will begin.  Everything will come at us at once and most of us will have no where to turn except to the nanny-daddy state for we have been conditioned to believe that, ultimately, the government is our father or mother figure, the source of safety and the source of unmerited favors. 

Government food lines will be a common sight throughout the nation and people will be turning in their guns so they can eat or stay in their homes or be relocated to safe areas and especially to keep themselves and their families out of the FEMA camps. 

A civil war may also start, but I don’t think those that choose to fight will fare well.  It is possible that under these circumstances foreign troops will be used to put down any violent response on the part of Americans.  

It is a bleak picture and one that I am not happy to relate.

I could be wrong about what is going to happen.  In this instance perhaps history will not be the best teacher or prediction tool for things to come.  If ever there was a time for national prayer it is now.

However, this is also a time for great hope because we will become a more spiritual nation; we will start to appreciate the things in life that have true and lasting value.  Many of us will turn to God instead of the state.  Also, thanks to people like Ron Paul, Alex Jones, Devvy Kidd, William Grigg and Bob Higgs along with many other speakers and fine writers, the public is starting to wake up to the truth.  Some say the elitists have played their hand too fast and too hard and it will backfire. Ron Paul has two bills that are gaining some support; one is too audit the Federal Reserve and the other is to abolish it. We have the organizations like ones from Sheriff Richard Mack with his program No Sheriff Left Behind and the distribution of his book “The County Sheriff: America’s Last Hope”.  Also Stewart Rhodes’ new organization, Oath Keepers where thousands of military and law enforcement personal are restating their oaths and preparing themselves to defend the citizens of the US  and the US Constitution.  They are pledging NOT to obey unconstitutional orders and are getting themselves ready to do just that.  Demonstrations and public backlash is on the rise, such as the Tea Party demonstrations that swept the nation last week. So despite the doom and gloom, we have much to look forward to if we have the right attitude.

Someone once asked me how they could really find out what is going on.  I told them to read the Bible and that is what I am telling you tonight; for ultimately we are involved in a spiritual battle with each of us having a role to play.  If you take anything away from what you may have learned tonight I hope you choose to think long and hard about this statement – it is a spiritual battle.

 Thank you.”