Why do we celebrate the 4th of July? If you were to ask average people on the street this question, many of them would mumble something about “independence”, but the truth is that most Americans would not be able to tell you clearly why it is a holiday. According to Wikipedia, the 4th of July “is a federal holiday in the United States commemorating the adoption of the Declaration of Independence 241 years ago on July 4, 1776.” Unfortunately, most Americans have never read the Declaration of Independence, and if a similar document was authored today it would be banned from our public schools because it mentions God four times. We have allowed the liberal elite to gain such a stranglehold over our society that even our most cherished founding principles have become politically incorrect.
If you ask most Americans to quote from the Declaration of Independence, almost everyone will give you something from this sentence…
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.
This is one of the most famous sentences in the English language, but do most of us still proudly believe this?
And if you happen to be someone that does not believe in God, then where do your rights come from?
If they come from men, then men can take them away. But if they come from God, then nobody can take them away. This is a point that President Trump brought up in a major speech that he just delivered to a group of veterans…
“Since the signing of the Declaration of Independence 241 years ago, America always affirmed that liberty comes from our creator. Our rights are given to us by God, and no earthly force can ever take those rights away. That is why my administration is transferring power out of Washington and returning that power back where it belongs to the people,” Trump said.
“Our religious liberty is enshrined in the very first amendment in the Bill of Rights. The American founders invoked our creator four times in the Declaration of Independence,” said Trump. “Benjamin Franklin reminded his colleagues at the Constitutional Convention to begin by bowing their heads in prayer. Inscribed on our currency are the words: ‘In God We Trust.’”
It is so refreshing to hear a president talk like this, because these days most of our politicians are so careful to be politically-correct. And I am not just talking about Democrats. Many politicians that are supposedly “conservative” seem quite uncomfortable when matters of faith come up, and if you can get them to talk about God they usually want to switch topics as quickly as possible.
But in the old days, Republicans and Democrats both acknowledged the importance of faith in our society. The following comes from an excellent article by Dr. Gary Scott Smith…
Dwight Eisenhower insisted that the Founding Fathers “wrote their religious faith into our founding documents, stamped their trust in God upon our coins and currency, [and] put it squarely at the base of our institutions.” They strove to obey God’s commandments, live in freedom, and create a prosperous country. “The knowledge that God is the source of all power,” Eisenhower maintained, gave birth to and sustained America. Human dignity depended on the God-given rights that were “eloquently stated” in the Declaration of Independence.
Faith in Almighty God, John F. Kennedy contended, “was a dominant power in the lives of our Founding Fathers.” He urged Americans to “dwell upon the deep religious convictions of those who formed our nation.”
Ronald Reagan repeatedly stressed the religious commitments of the Founding Fathers, especially their contention that the United States would flourish only if its people acted morally. The founders, he declared, “believed faith in God was the key to our being a good people and America’s becoming a great nation.” Reagan regularly recounted how the founders, especially Washington, had relied on God in leading the nation. The Declaration of Independence, Reagan claimed, expressed America’s recognition of God’s power and authority. He noted that Benjamin Franklin, John Jay, Thomas Jefferson, and James Madison all accentuated God’s providential guidance and the importance of prayer. The Founding Fathers ensured that Congress began each day with prayer, Reagan proclaimed, because they valued prayer so highly.
If we truly want to restore our Republic, we can’t throw out the principles and values that the Republic was founded upon. The First Amendment guarantees that there will never be an official state church and that we will always get to worship God the way that we want, but there is absolutely nothing in there that says we must have a godless government. On the contrary, our founders were more influenced by the Bible than any other book, and they quoted from it more than any other book. Dr. Daniel L. Dreisbach is the author of “Reading the Bible with the Founding Fathers“, and I have used this quote from him previously, but I wanted to use it again here because it fits my point perfectly…
The founders, as I document in my new book “Reading the Bible with the Founding Fathers,” lived in a biblically literate society. Their many quotations from and allusions to both familiar and obscure biblical texts confirm that they knew the Bible from cover to cover. Biblical language and themes liberally seasoned their rhetoric. The phrases and intonations of the King James Bible, especially, influenced their written and spoken words. Its ideas shaped their habits of mind.
The Bible left its mark on their political culture. Legislative debates, pamphlets and political sermons of the age are replete with quotations from and allusions to the Bible. Following an extensive survey of American political literature from 1760 to 1805, political scientist Donald S. Lutz reported that the Bible was cited more frequently than any European writer or even any European school of thought, such as Enlightenment liberalism. Approximately one-third of all citations in the literature he surveyed were to the Bible. The book of Deuteronomy alone was the most frequently cited work, followed by Montesquieu’s “The Spirit of the Laws.” In fact, Deuteronomy was referenced nearly twice as often as Locke’s writings, and the Apostle Paul was mentioned about as frequently as Montesquieu.
The biggest reason why our federal government is such a mess today is because it has pushed God completely out of the picture.
So instead of defending life, our nation has murdered nearly 60 million children since Roe v. Wade was decided in 1973.
Instead of defending liberty, the control freaks at the federal level are suffocating us with hundreds of thousands of laws, rules and regulations, and if you throw in the state and local levels, the number of laws, rules and regulations governing us is in the millions.
And instead of promoting the pursuit of happiness, all of us have to work several months each year just to pay the dozens of different taxes and fees that various levels of government impose on all of us. But we don’t actually have to have such a system. If we got rid of our debt-based financial system and went to a much smaller federal government, we could abolish the income tax, the IRS and the Federal Reserve.
Government is not the solution to our problems.
As Ronald Reagan once famously said, government is the problem.
If we work together, we can dismantle the monstrous federal bureaucracy that the liberal elite have spent decades constructing, and we can restore the Republic that our founders risked everything to establish.
It won’t be easy, but we can get there, and the first step is getting back to the principles and values that made America great in the first place.
Don’t be surprised when the global elite confiscate money from your bank account one day. They are already very clearly telling you that they are going to do it. Dutch Finance Minister Jeroen Dijsselbloem is the president of the Eurogroup – an organization of eurozone finance ministers that was instrumental in putting together the Cyprus “deal” – and he has said publicly that what has just happened in Cyprus will serve as a blueprint for future bank bailouts. What that means is that when the chips are down, they are going to come after YOUR money. So why should anyone put a large amount of money in the bank at this point? Perhaps you can make one or two percent on your money if you shop around for a really good deal, but there is also a chance that 40 percent (or more) of your money will be confiscated if the bank fails. And considering the fact that there are vast numbers of banks all over the United States and Europe that are teetering on the verge of insolvency, why would anyone want to take such a risk? What the global elite have done is that they have messed around with the fundamental trust that people have in the banking system. In order for any financial system to work, people must have faith in the safety and security of that financial system. People put their money in the bank because they think that it will be safe there. If you take away that feeling of safety, you jeopardize the entire system.
So exactly how did the big banks in Cyprus get into so much trouble? Well, they have been doing exactly what hundreds of other large banks all over the U.S. and Europe have been doing. They have been gambling with our money. In particular, the big banks in Cyprus made huge bets on Greek sovereign debt which ended up failing.
But what happened in Cyprus is just the tip of the iceberg. All over the planet major financial institutions are being incredibly reckless with client money. They are leveraged to the hilt and they have transformed the global financial system into a gigantic casino.
If they win on their bets, they become fabulously wealthy.
If they lose on their bets, they know that the politicians won’t let the banks fail. They know that they will get bailed out one way or another.
And who pays?
Either our tax dollars are used to fund a government-sponsored bailout, or as we have just witnessed in Cyprus, money is directly confiscated from our bank accounts.
And then the game begins again.
People need to understand that the precedent that has just been set in Cyprus is a game changer.
The next time that a major bank fails in Greece or Italy or Spain (or in the United States for that matter), the precedent that has been set in Cyprus will be looked to as a “template” for how to handle the situation.
Eurogroup president Jeroen Dijsselbloem has even publicly admitted that what just happened in Cyprus will serve as a model for future bank bailouts. Just check out what he said a few days ago…
“If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?’. If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders”
“It will force all financial institutions, as well as investors, to think about the risks they are taking on because they will now have to realise that it may also hurt them. The risks might come towards them.”
Well, as depositors in Cyprus just found out, there is a risk that you could lose 40 percent (and that is the best case scenario) of your money if you put it in the bank.
Why would anyone want to take that risk – especially in a nation that is already experiencing very serious financial troubles such as Greece, Italy or Spain?
As if that was not enough, Dijsselbloem later went in front of the Dutch parliament and publicly defended a wealth tax like the one that was just imposed in Cyprus.
Dijsselbloem is being widely criticized, and rightfully so. But at least he is being more honest that many other politicians. His predecessor as the head of the Eurogroup, Jean-Claude Juncker, once said that “you have to lie” to the people in order to keep the financial markets calm…
Mr. Dijsselbloem’s style contrasts with that of his predecessor, Jean-Claude Juncker, Luxembourg’s prime minister, who spoke in a low mumble at news conferences and was expert at sidestepping questions. Mr. Juncker once even advocated lying as a way to prevent financial markets from panicking—as they did Monday after Mr. Dijsselbloem’s comments.
“When it becomes serious, you have to lie,” Mr. Juncker said in April 2011. “If you have pre-indicated possible decisions, you are feeding speculation in the financial markets.”
But Dijsselbloem is certainly not the only one among the global elite that is admitting what is coming next. Just check out what Joerg Kraemer, the chief economist at Commerzbank, recently told Handelsblatt about what he believes should be done in Italy…
“A tax rate of 15 percent on financial assets would probably be enough to push the Italian government debt to below the critical level of 100 percent of gross domestic product”
And as I wrote about the other day, the Finance Minister of New Zealand is proposing that bank account holders in his nation should be required to “take a haircut” if any banks in his nation fail.
They are telling us what they plan to do.
They are telling us that they plan to raid all of our bank accounts when the global financial system fails.
And calling it a “haircut” does not change the fact of what it really is. The truth is that when they confiscate money from our bank accounts it is outright theft. Just check out what the Daily Mail had to say about the situation in Cyprus…
People who rob old ladies in the street, or hold up security vans, are branded as thieves. Yet when Germany presides over a heist of billions of pounds from private savers’ Cyprus bank accounts, to ‘save the euro’ for the hundredth time, this is claimed as high statesmanship.
It is nothing of the sort. The deal to secure a €10 billion German bailout of the bankrupt Mediterranean island is one of the nastiest and most immoral political acts of modern times.
It has struck fear into the hearts of hundreds of millions of European citizens, because it establishes a dire precedent.
And when you cause paralysis in the banking system, a once thriving economy can freeze up almost overnight. The following is an excerpt from a report from someone that is actually living over in Cyprus…
As it stands now, nowhere in Cyprus accepts credit or debit cards anymore for fear of not being paid, it is CASH ONLY. Businesses have stopped functioning because they cannot pay employees OR pay for the stock they receive because the banks are closed. If the banks remain closed, the economy will be destroyed and STOP COMPLETELY. Looting, robberies and theft are already on the rise. If the banks open now, there will be a massive run on the bank, and the banks will FAIL loosing all of its deposits, also causing an economic crash. TONIGHT there are demonstrations at most street corners and especially at the parliament building (just 2 miles from me).
Many are thinking that the ECB and EU are allowing Cyprus to fail as a test ground for new financial standards.
Just wanted all you guys to know the real story of whats going on here. Prayers are appreciated (although this is very interesting to watch) many of my local friends have lots of money in the banks.
Would similar things happen in the United States if there was a major banking crisis someday?
“The central government’s interest bill surged 15 percent last year to 26 billion euros, while tax receipts slumped 21 percent. The cost of servicing debt represented 30 percent of the taxes collected at the end of December, up from 20 percent a year earlier.”
-The euro took quite a tumble on Thursday and the euro will likely continue to decline steadily in the weeks and months to come.
For a very long time I have been warning that the next major wave of the economic collapse is going to originate in Europe.
Hopefully people are starting to see what I am talking about.
As this point, the major banks in Europe are leveraged about 26 to 1, and that is close to the kind of leverage that Lehman Brothers had when it finally collapsed. As a whole, European banks are drowning in debt, they are taking risks that are almost incomprehensible and now faith in those banks has been greatly undermined by what has happened in Cyprus.
Anyone that cannot see a crisis coming in Europe simply does not understand the financial world. A moment of reckoning is rapidly approaching for Europe. The following is from a recent article by Graham Summers…
At the end of the day, the reason Europe hasn’t been fixed is because CAPITAL SIMPLY ISN’T THERE. Europe and its alleged backstops are out of money. This includes Germany, the ECB and the mega-bailout funds such as the ESM.
Germany has already committed to bailouts that equal 5% of its GDP. The single largest transfer payment ever made by one country to another was the Marshall Plan in which the US transferred an amount equal to 5% of its GDP. Germany WILL NOT exceed this. So don’t count on more money from Germany.
The ECB is chock full of garbage debts which have been pledged as collateral for loans. If anyone of significance defaults in Europe, the ECB is insolvent. Sure it can print more money, but once the BIG collateral call hits, money printing is useless because the amount of money the ECB would have to print would implode the system.
And then of course there are the mega bailout funds such as the ESM. The only problem here is that Spain and Italy make up 30% of the ESM’s supposed “funding.” That’s right, nearly one third of the mega-bailout fund’s capital will come from countries that are bankrupt themselves.
What could go wrong?
Right now, close to half of all money that is on deposit at banks in Europe is uninsured. As people move that uninsured money out of the banks, the amount of money that will be required to “fix the banks” will go up even higher.
It would be wise to try to avoid the big banks at this point – especially those with very large exposure to derivatives. Any financial institution that uses customer money to make reckless bets is not to be trusted.
If you can find a small local bank or credit union to do business with you will probably be better off.
And don’t think that this kind of thing can never happen in the United States.
One of the key players that was pushing the idea of a “wealth tax” in Cyprus was the IMF. And everyone knows that the IMF is heavily dominated by the United States. In fact, the headquarters of the IMF is located right in the heart of Washington D.C. not too far from the White House. When I worked in D.C. I would walk by the IMF headquarters quite a bit.
So if the United States thought that confiscating money from bank accounts was a great idea in Cyprus, why wouldn’t they implement such a thing here under similar circumstances?
The global elite are telling us what they plan to do, and the game has dramatically changed.
Move your money while you still can.
Unfortunately, it is already too late for the people of Cyprus.
The global elite have now proven that when the chips are down they are going to go after any big pile of money that they think they can get their hands on. That means that no bank account, no retirement fund and no stock portfolio on earth is safe. Up until now, most people assumed that private bank accounts were untouchable and that deposit insurance actually meant something. Now we see that there is no pile of money that is considered “off limits” by the global elite and deposit insurance means absolutely nothing. The number one thing that any financial system depends on is faith. If people do not have faith in the safety and stability of a financial system, it will not work. Well, the people that rule the world have just taken a sledgehammer to the trust that we all had in the global financial system. They have broken the unwritten social contract that global banking depends on. So now we will see a run on the banks, and this will not just be limited to a few countries in southern Europe. Rather, this will be worldwide in scope. Yoda may have put it this way: “Begun, the global bank run has.” All over the world, frightened people are going to start pulling money out of the banks. A lot of that money will go into gold, silver and other hard assets. And as money starts coming out of the banks, this could cause many of the large banks that have been teetering on the edge of disaster to finally collapse.
Many of you may not believe that they would ever come after bank accounts, retirement funds or stock portfolios in the United States.
Many of you may be entirely convinced that the Great Cyprus Bank Robbery could never happen in America.
Well, where do you think this whole plan was dreamed up?
It was the IMF that reportedly pushed the hardest for the wealth tax in Cyprus, and the IMF is headquartered right in the heart of Washington D.C.
Almost every nation on the planet has to deal with the IMF. It is an organization that is dominated by the United States and that is always involved when there is an international debt crisis.
If the IMF thinks that it is a great idea to steal from bank accounts to solve a financial crisis in Cyprus, why wouldn’t they impose a similar solution in other countries in the future?
And if bank accounts are no longer safe, are there any truly safe places to put your money?
You can trust the politicians when they tell you that an unannounced “wealth tax” will never happen where you live if you want, but that is the exact same lie that the politicians in Cyprus were telling their people until the day that it happened. The following is from an article in the Cyprus Mail…
And after all, President Anastasiades had emphatically declared in his inauguration speech that “absolutely no reference to a haircut on public debt or deposits will be tolerated,” adding that “such an issue isn’t even up for discussion.” Finance Minister Michalis Sarris made similarly reassuring statements, arguing that it would be lunacy for the EU to impose such a measure because it would threaten the euro system.
At this point, politicians in Cyprus have been given two very unappealing options. Either they vote yes on the wealth tax and destroy all faith in the banking system of Cyprus, or they vote no and they are forced out of the eurozone. In either case, we will probably see the financial system of Cyprus collapse and their economy plunge deep into depression.
At this point, the vote has been delayed until Tuesday. Apparently some additional “arm twisting” was required to get the needed votes.
And there have been proposals to change the terms of the wealth tax. Reportedly, some politicians want to impose a maximum rate of up to 15 percent on bank accounts of over 500,000 euros so that the rate on smaller accounts can be decreased.
It has also been announced that the earliest that banks in Cyprus will reopen will be Thursday.
But what is happening in Cyprus is small potatoes compared to how this will affect the rest of the world. The entire planet is watching this unfold, and as a recent article by Lucas Jackson described, faith in the global financial system is being greatly shaken…
It would be hard to over-emphasize how significant the Cyprus situation is. The EU demonstrated under no uncertain circumstances that they will destroy the rule of law to maintain their own power. It was a recognition of tyranny that many of us have always assumed was the case but yesterday became reality.
The damage done here is not related to the size of the haircut – currently discussed between 3 and 13% – but rather that the legal language which each and every investor on the planet must rely on in order to maintain confidence in the system has been subordinated to the needs of the powerful elite. To the power elite making the major decisions in DC, London, Berlin, France, Brussels, et. al., laws are like ice cream, easily melted.
Which begs the question, who is next? Will it be Portugal? Greece? Spain? Italy? France???
Will they impose a “one-time” tax on your bank account? Your house? Your stocks and bonds? Retirement accounts?
The global elite have declared open season on all large piles of money, and now many people all over the world will consider taking money out of the bank to be the rational thing to do. This will especially be true in countries in southern Europe since they would probably be the next to have wealth confiscated.
All of us should really take a moment to consider what the governments of Europe have done. To be clear, they initiated a surprise assault on the precautionary savings of their own people. Such a move should send shock waves across the entire population of the developed world. This was not a Bernanke style slow moving financial repression against risk free savings that is meant to stir up animal spirits and force risk taking. This is a nuclear war on savings and wealth – something that will likely crush animal spirits. This is a policy move you expect from a dictatorial regime in sub-Saharan Africa, not in an EMU member state. If the European governments can clandestinely expropriate 7 to 10 percent of their hard working citizen’s precautionary savings after the close of business on a Friday night, what else are they capable of doing? Why even hold money in a bank account? Are they trying to start a bank run?
So what motivated the global elite to do this?
According to CNBC, one of the motivations was to go after the Russians that had been using the banking system of Cyprus to launder money…
Indeed, the IMF is reported to have been keen on the levy as a way to stem the flood of Russian money into the island over the last few years which has prompted concerns over money laundering.
Russian money accounts for about 25 percent of all money in the banking system of Cyprus, and obviously the Russians are quite upset by what the IMF and the EU have decided to do. Even Vladimir Putin is loudly denouncing this move…
Russian President Vladimir Putin called the tax “unfair, unprofessional and dangerous,” according to a statement posted on the Kremlin website. Russian companies and individuals have $31 billion of deposits in Cyprus, according to Moody’s.
And you haven’t heard a lot about this in the western media, but the Russians have actually stepped forward and have offered to help Cyprus out of this jam. For example, there are reports that Russian investors are interested in buying the two banks that were the primary cause of this bailout…
Officials have also said Russian investors are interested in buying a majority stake in Cyprus Popular Bank and increasing their holdings in Bank of Cyprus – the two biggest banks on the Mediterranean island.
And according to Sky News, Gazprom has offered Cyprus a very large sum of money for the right to explore their offshore gas reserves that have not been developed yet…
The uncertainty comes as Russia’s finance minister said his country would consider restructuring its loans to Cyprus.
Russian energy giant Gazprom has also reportedly offered financial assistance to Cyprus in exchange for access to the island’s gas reserves.
So far the government of Cyprus has rejected the help of the Russians, but could they change their mind at some point? Apparently the Russians are offering enough money to completely fund the bank bailout…
According Greek Reporter, Gazprom made an offer over the weekend to the Cypriot government to fund the bank restructuring planned under the Cypriot bailout (which is set to cost up to €10bn) in exchange for exclusive exploration rights for Cypriot territorial waters. How reliable this story is remains to be seen, but it does hint at the geopolitical tension which we have been warning about.
Gazprom is known to be very close to the Russian government and despite Russian President Vladimir Putin overtly slamming the deposit tax – calling it “unfair, unprofessional and dangerous” – it is unlikely that they would let this opportunity pass untouched. Fortunately, the Cypriot government is said to have rejected the deal off the bat, but if displeasure towards the eurozone and the EU grows, the Russian option may become increasingly appealing.
It will be very interesting to see what happens.
Meanwhile, some European officials are already suggesting that other nations in southern Europe should have a “wealth tax” imposed upon them. The following comes from an article by Paul Joseph Watson…
Joerg Kraemer, chief economist of the German Commerzbank, has called for private savings accounts in Italy to be similarly plundered. “A tax rate of 15 percent on financial assets would probably be enough to push the Italian government debt to below the critical level of 100 percent of gross domestic product,” he told Handelsblatt.
A “tax” of 15 percent on all financial assets?
Could you imagine if you woke up one morning and the government had decided to suddenly steal 15 percent of all the money that you had in bank accounts, retirement funds and stock portfolios?
If I had a bank account in Italy I would be very nervous right about now.
Under normal circumstances these kinds of things don’t happen, but governments will use an “emergency” to justify all kinds of things. I recently came across an article that included a great quote by Herbert Hoover that put this beautifully…
“Every collectivist revolution rides in on a Trojan horse of ‘emergency’. It was the tactic of Lenin, Hitler, and Mussolini. In the collectivist sweep over a dozen minor countries of Europe, it was the cry of men striving to get on horseback. And ‘emergency’ became the justification of the subsequent steps. This technique of creating emergency is the greatest achievement that demagoguery attains.”
This is what the elite love to do.
They love to create order out of chaos.
And this is just the beginning. The Great Cyprus Bank Robbery was just a beta test for what is coming next.
As the global financial system crumbles, the global elite are going to target our bank accounts, our retirement funds and our stock portfolios. You might want to start thinking about how you will protect yourself.
So what are your thoughts on all of this? Please feel free to post a comment with your thoughts below…
Share this list of shocking questions with everyone you know that needs to wake up. Sometimes asking good questions is the best way to get someone that you care about to understand something. When I attended law school, I became very familiar with something called “the Socratic method”. It is a method that has been traditionally used in law schools all over the United States. Law professors will bombard their students with questions, and the goal is to stimulate critical thinking and allow students to discover the answers for themselves. Many times those of us that can see what is happening to this country get frustrated when we try to get others to see what is so apparent to us. But instead of preaching to them, perhaps asking questions would be more helpful. When you ask someone a question, they are almost forced to think about what you just said and come up with a response. And without a doubt, the fact that America is in decline is undeniable. Those that would choose to blindly have faith in the system are foolish, because it is glaringly obvious that the system is failing. Our economy is heading for collapse and the world around us is becoming more unstable with each passing day. So it shouldn’t be a surprise that the number of preppers in the United States is absolutely exploding. Some estimates put the number of preppers in the U.S. as high as 3 million, and the movement continues to explode.
So exactly what is a “prepper”? Well, the truth is that there is a tremendous amount of diversity among the people that fall under that label.
To me, you don’t have to move to Montana and store 500 cases of MREs in a nuclear fallout shelter to be considered a prepper. I believe that anyone that can see a very serious crisis coming and that is taking steps to prepare for that crisis would be considered a prepper. You might be living next to one and never even know it. Many families have converted spare rooms into food pantries or are taking survival training on the weekends. Others have renewed their interest in gardening or have started to invest in precious metals. As far as I am concerned, anything that you can do to become more self-sufficient and more independent of the system is a good thing, because the system is rapidly failing.
Perhaps you are reading this and you are thinking that people who are “preparing for disaster” are being rather foolish. Well, I encourage you to read the list of questions that I have compiled below and come to your own conclusions.
The following are 50 shocking questions that you should ask to anyone that is not a prepper yet…
#1 Why are sales of physical silver coins breaking all sorts of all-time records? The U.S. Mint is on pace to sell more silver eagles during the first month of 2013 than it did during the entire year of 2007.
#2 Why has Germany announced that it will be moving gold from New York and Paris to its own vaults back home? Is this a sign of a breakdown in trust among global central banks?
#30 Why did the U.S. national debt grow during the first four years of the Obama administration by about as much as it did from the time that George Washington took office to the time that George W. Bush took office?
#37 Why has the percentage of men with jobs in the United States fallen so dramatically? Back in 1950, more than 80 percent of all men in the United States had jobs. Today, less than 65 percent of all men in the United States have jobs.
#38 Why are so many Americans poor today? According to the U.S. Census Bureau, more than 146 million Americans are either “poor” or “low income”. Why is this happening?
#45 Why are more than 50 percent of all children in Detroit living in poverty? Detroit used to be one of the greatest cities in the entire world. How did such prosperity turn into such desolation?
#46 Why did a violent riot break out at an event where government-subsidized section 8 housing vouchers were being handed out in a suburb of Detroit earlier this month? Is this the kind of unrest that we can expect to see all over the country when things get really bad?
#50 Why is global power concentrated in so few hands? According to the Swiss Federal Institute, a network of 147 mega-corporations control 40 percent of all the wealth in the world, and in a previous article I described how just six obscenely powerful corporations completely dominate the media industry in the United States. Is it good for such incredible power to be concentrated in the hands of so few people?
Please share this article with as many people as you can. It only takes a few moments to share an article, but the person on the other end that reads it might have their life changed forever.
Do you have any questions that you think should be added to this list? Please feel free to share your thoughts by leaving a comment below…
The cracks in the ice are getting bigger. At this point it is really hard to have much confidence in the global financial system at all. They told us that MF Global was an isolated incident. Well, the horrific financial scandal over at PFGBest is essentially MF Global all over again. They told us that we would not see a huge wave of municipal bankruptcies in the United States. Well, three California cities have declared bankruptcy in less than a month. They told us that we could have faith in the integrity of the global financial system. Well, now we are finding out that global interest rates have been fixed by insiders for years. They told us that Greece was an isolated problem and that none of the larger European nations would experience anything remotely similar. Well, what is happening in Spain right now looks like an instant replay of exactly what happened in Greece. So who are we supposed to believe? Why does it seem like nearly everything that “the authorities” tell us turns out to be a lie? What else haven’t they been telling us?
The following are four reasons to be even less optimistic about the global financial system than you were last month….
#1 PFGBest Is MF Global All Over Again
Do you remember that whole MF Global thing?
Do you remember how hundreds of millions of dollars of customer funds were “missing” due to “accounting irregularities”?
Well, it is happening again.
PFGBest is a brokerage firm in Cedar Falls, Iowa that mostly handles agricultural futures.
All hell broke loose when the National Futures Association discovered that a bank account that was supposed to be holding 225 million dollars of customer funds was only holding about 5 million dollars instead.
So where is the other 220 million dollars?
That is a very good question.
Of course it is not a promising sign that the head of PFGBest tried to commit suicide when this news came out.
A lot of PFGBest clients are going to be absolutely devastated by this scandal. The following is from a recent Reuters article….
Farmers on Tuesday fumed at the prospect of financial losses, or at a minimum a lengthy wait for the return of frozen funds, due to alleged mismanagement at brokerage PFGBest, and some said they had been burned for the last time.
The U.S. futures industry reeled as regulators accused Iowa-based PFGBest of misappropriating more than $200 million in customer funds for more than two years, a new blow to trader trust just months after MF Global’s collapse.
Centered in the heart of farm belt, the firm handled agricultural futures accounts for a number of clients who grow corn, soybeans and cotton.
But it is not just PFGBest clients that are going to feel the pain of this scandal.
The truth is that this is going to deeply shake confidence in the entire global financial system.
Many dismissed what happened at MF Global as an “isolated incident”.
But now it is happening again.
Fool me once, shame on you.
Fool me twice, shame on me.
#2 A Third California City Goes Bankrupt In Less Than A Month
The city’s fiscal crisis has been years in the making, compounded by the nation’s crushing recession and exacerbated by escalating pension costs, lucrative labor agreements, Sacramento’s raid on redevelopment funds and a city reserve that is tapped out, officials said.
For example, the city of Scranton, Pennsylvania has such severe financial problems that the mayor of Scranton has ordered that all city employees be paid minimum wage until a solution to the crisis is found.
If this was television, Dwight Schrute would find a way to save the day for Scranton.
Unfortunately, this is real life and Dwight Schrute does not exist in real life.
#3 The Liborgate Scandal Keeps Getting Worse
We have been taught that we should all have faith in the integrity of the global financial system.
What a bunch of baloney that turned out to be.
It turns out that banksters have been colluding to fix global interest rates for years.
Over the past week damning evidence has emerged, in documents detailing a settlement between Barclays and regulators in America and Britain, that employees at the bank and at several other unnamed banks tried to rig the number time and again over a period of at least five years. And worse is likely to emerge. Investigations by regulators in several countries, including Canada, America, Japan, the EU, Switzerland and Britain, are looking into allegations that LIBOR and similar rates were rigged by large numbers of banks. Corporations and lawyers, too, are examining whether they can sue Barclays or other banks for harm they have suffered. That could cost the banking industry tens of billions of dollars. “This is the banking industry’s tobacco moment,” says the chief executive of a multinational bank, referring to the lawsuits and settlements that cost America’s tobacco industry more than $200 billion in 1998. “It’s that big,” he says.
As many as 20 big banks have been named in various investigations or lawsuits alleging that LIBOR was rigged. The scandal also corrodes further what little remains of public trust in banks and those who run them.
So what does all of this mean?
The Wall Street Journal says that the credibility of the entire global financial system is at stake….
At stake is both the integrity of the world’s financial system and the credibility of the U.K. authorities to police it. Long before the current scandal, many European policy makers had concluded that London during the boom was the Wild West, whose loose standards are a threat to European financial stability. The Libor scandal suggests U.S. regulators have reached similar conclusions. The Commodities Futures Trading Commission, the U.S. regulatory body that first started investigating rate-fixing, left little doubt how seriously it regards the abuses it uncovered.
Once faith is shattered, it is incredibly difficult to rebuild.
And right now it is really hard to come up with a decent argument why anyone should trust their money to such a corrupt system.
#4 Spain Is Turning Into Greece
A central government drowning in debt?
A banking system on the verge of collapse?
Politicians pushing a forced austerity program that includes much higher taxes, much lower government spending and greatly reduced pay for government workers?
Wild rioting in the streets by protesters?
Let’s see….where have we seen this before?
Can anyone still possibly deny that Spain is going down the exact same road that Greece has gone?
Spanish Prime Minister Mariano Rajoy is proposing a huge slate of tough austerity measures including a 3 point increase in the Value Added Tax on goods and services. If that 3 point hike is implemented, the Value Added Tax will rise to 21 percent.
Could you imagine going to the store and paying a 21 percent sales tax?
Rajoy is promising that these measures will get Spain back on the right track.
Of course we have already seen how well such austerity measures have worked in Greece.
The unemployment rate in Spain is already up to 24.4 percent, and now these austerity measures will slow the economy down even more.
No wonder there is rioting in the streets. You can see high quality footage of the rioting that has been going on in Spain this week right here. At one point police were seen firing rubber bullets at the protesters.
But of course the citizens of Spain could not live way above their means forever. At some point every debt bubble ends, and when that happens the results are often incredibly painful.
This is a lesson that the United States has not learned either. When we stop racking up more than a trillion dollars of additional government debt every year our “adjustment” will be exceedingly painful as well.
That includes the decay that is happening in society. A few days ago I made a list of 25 signs that society is falling apart, but then another story came along after I had finished my article that topped all of the examples in my list. The following is how one man in West Virginia has been treating his wife….
During the conversation, according to the criminal complaint, Lizon’s wife told the woman that her husband had kept her chained up with metal padlocks and chains for about 10 years. The woman noticed scar tissue on the victim’s hands and ankles. Lizon’s wife told the woman that the scars were from the chains tearing into her skin.
Lizon’s wife told the woman that she and her husband were originally from Czechoslovakia, and that they live in Leroy, W.Va.
According to the complaint, the woman told investigators that the feet of Lizon’s wife were “mutilated and swollen,” one of which was missing a considerable amount of skin. Lizon’s wife told the woman that her husband smashed her foot with a bucket or scoop attachment of a farm tractor.
Lizon’s wife also told the woman Lizon called her his “slave,” and that whenever her husband entered the room she had to kneel down before him, according to the complaint.
Can you imagine anyone doing that?
Can you imagine any husband chaining his wife up for 10 years?
That is so sick that it is beyond words to describe it.
Unfortunately, that is not just one isolated incident of depravity in a world filled with goodness.
The truth is that the entire world system is saturated with depravity and corruption.
If anyone is willing to stand up for “the integrity of the global financial system”, I challenge you to leave a comment below explaining to the rest of us why we should still have blind faith in the system after everything that has happened.
I don’t imagine that too many people will even attempt to take me up on that challenge.
The Federal Reserve says that everything is going to be okay. The Fed says that unemployment is going to go down, inflation is going to remain low and economic growth is going to steadily increase. Do you believe them this time? As you will see later in this article, Federal Reserve Chairman Ben Bernanke has been dead wrong about the economy over and over again. But the mainstream media and many Americans still seem to have a lot of faith in the Federal Reserve. It doesn’t seem to matter that Bernanke and other Fed officials have been telling the American people lies for years. As I always say, most people believe what they want to believe, and many people seem to want to have blind faith in the Federal Reserve even when logic and reason would dictate otherwise. The truth is that things are not going to be getting much better than they are right now. When the next wave of the financial crisis hits, the U.S. economy is going to fall back into recession, financial markets are going to crash and unemployment is going to absolutely skyrocket. But you will never hear any of that from the Federal Reserve.
The following are 5 new lies that the Federal Reserve is telling the American people. After each lie I have posted what The Economic Collapse Blog thinks is actually going to happen….
#1 The Federal Reserve says that the labor market has improved and that unemployment is going to decline significantly over the next few years.
The following is a quote from the FOMC press release that was released on Wednesday….
Labor market conditions have improved in recent months; the unemployment rate has declined but remains elevated.
The Federal Reserve is projecting that the unemployment rate will fall within the range of 7.8 percent and 8.0 percent by the end of 2012.
The Federal Reserve is also projecting that the unemployment rate will fall within the range of 6.7 percent and 7.4 percent by the end of 2014.
The Economic Collapse Blog says that the labor market has not improved. In March 2010, 58.5 percent of all working age Americans had a job. Exactly two years later in March 2012, 58.5 percent of all working age Americans had a job. If the labor market was improving, the percentage of working age Americans with a job should have gone up.
The Economic Collapse Blog also says that while there is a chance the official unemployment rate may go down slightly in the short-term, the truth is that it is going to go up into double digits once the next wave of the financial crisis hits us.
#2 The Federal Reserve says that that U.S. economy is going to experience solid GDP growth over the next couple of years.
In fact, the Federal Reserve is projecting that U.S. GDP will be rising at an annual rate that falls between 3.1 percent and 3.6 percent by the end of 2014.
The Economic Collapse Blog says that a great economic cataclysm is coming….
“When the European banking system crashes (and it will) it is going to reverberate around the globe. The epicenter of the next great financial crisis is going to be in Europe, and it is getting closer with each passing day.”
#3 The Federal Reserve says that we can expect low inflation for an extended period of time.
The Federal Reserve is officially projecting that the annual rate of inflation will not be higher than 2.0 percent by the end of 2012. Federal Reserve Chairman Ben Bernanke reinforced this projection during his press conference on Wednesday….
“But we expect that to pass through the system, and assuming no new shocks in the oil sector, inflation ought to moderate to about 2 percent later this year.”
The Economic Collapse Blog says that the Fed is being tremendously dishonest and that if inflation was measured the exact same way that it was measured back in 1980, the annual rate of inflation would be more than 10 percent right now.
The truth is that most middle class families know that we do not have low inflation right now. This is hammered home millions of times a day when average Americans visit the gas station or the grocery store.
At the beginning of the next recession inflation will likely subside, but that will only be because economic activity will be slowing down dramatically.
#4 The Federal Reserve says that it has built up a 30 year reputation for keeping inflation low.
Ben Bernanke actually had the gall to make the following claim during his press conference on Wednesday….
“We, the Federal Reserve, have spent 30 years building up credibility for low and stable inflation, which has proved extremely valuable in that we’ve been able to take strong accommodative actions in the last four, five years to support the economy.”
The Economic Collapse Blog says that the Federal Reserve has nearly a 100 year reputation for destroying the value of the U.S. dollar. Even using the Fed’s doctored numbers, the value of the U.S. dollar has declined by more than 95 percent since 1913.
To get a really good idea of just how much the dollar has been destroyed by the Fed over the years, just check out this chart.
#5 Federal Reserve Chairman Ben Bernanke says that we should trust him because the Federal Reserve stands ready to do whatever is necessary to support the U.S. economy.
“If appropriate… we remain entirely prepared to take additional action”
The Economic Collapse Blog says that Federal Reserve Chairman Ben Bernanke is doing a great disservice by not warning the American people about the tremendous crisis that is coming. In a recent article I stated that this next crisis will blindside most Americans just like the last one did….
“Sadly, just like back in 2008, most people will never even see this next crisis coming.”
So who should you trust – the Federal Reserve or all of the half-crazed bloggers out there that are warning about the “serious doom” that is coming.
Well, come back to this article in a year or two and compare how accurate the predictions were.
In the end, time will tell who is telling lies and who is not.
If we do not learn from history, we are doomed to repeat it.
For example, let’s take a quick look at Ben Bernanke’s track record over the past several years.
#1 (July, 2005) “We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”
#2 (October 20, 2005) “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”
#3 (November 15, 2005) “With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.”
#4 (February 15, 2006) “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”
#5 (February 15, 2007) “Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances appear generally solid, and delinquency rates on most types of consumer loans and residential mortgages remain low.”
#6 (March 28, 2007) “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”
#7 (May 17, 2007) “All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable.”
#8 (January 10, 2008) “The Federal Reserve is not currently forecasting a recession.”
#9 (June 10, 2008) “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”
But don’t worry, Ben Bernanke insists that he knows exactly what is going on this time.
We have been living in the greatest debt bubble in the history of the world and that debt bubble has been facilitated by the Fed.
Over the past three decades, the total amount of debt in America has increased by about 50 trillion dollars. By stealing from future generations, we have been able to live like kings and queens, but there is going to be a great price to pay for our foolishness.
Ben Bernanke and the other folks running the Federal Reserve are just going to keep insisting that everything is going to be okay for as long as they possibly can. They are going to tell you that they know exactly how to fix things and that the economy will be back on track very soon.
Have you ever heard of mob robberies? What happens is that dozens of young people storm a store at the same time, take whatever they want, and then storm out as powerless store clerks watch helplessly. Most of the time these “mob robbers” end up getting caught, but unfortunately “group crime” is a trend that is rising. Is it a sign of the times that large groups of people are starting to recklessly invade retail establishments? Is this the future of America? As I have written about so frequently, the U.S. middle class is being destroyed by this economy and large numbers of our young people are losing hope. Frustration and anger are rising from coast to coast and millions of Americans are losing faith in the system. The thin veneer of civilization which we all take for granted is already starting to disappear. So what is going to happen when the economy collapses? As our economic system fails, mob robberies and rampant looting are only going to become more common. Let us hope that the economy can hold together for at least a couple more years, because once society falls apart things are going to get really, really ugly in our major cities.
Are you prepared for what America is going to look like during the next Great Depression? It isn’t going to be pretty. Over the past couple of decades we have gotten hints of what America is going to look like when society breaks down, and those hints have been very frightening.
This first video is a news report about the mob robberies that have taken place in Minnesota recently. What would you do if you were a store clerk in this situation….
Unfortunately, these mob robberies are not just an anomaly. The American people really do seem to be losing it. Over the past couple of years, some almost unbelievable brawls have been breaking out in restaurants and in retail establishments all over the nation.
In addition, who could forget the wild mob scenes that erupted at stores all over America during the most recent Black Friday holiday sales?
Of course we all remember what happened during the aftermath of Hurricane Katrina. All along the Gulf Coast looting was rampant. Sadly, people were even openly looting stores in front of television news cameras….
This third video contains a compilation of footage from all over the United States over the past few decades. Is this what America is going to look like when the economy breaks down and people are going wild in the streets?….
But don’t think that Americans only act this way in the big cities. The truth is that human decency is breaking down everywhere. This was perfectly illustrated by a recently reported case of horrific child abuse in Oklahoma.
According to CNN, a 9-year-old girl, an 11-year-old boy and a 15-year-old boy were actually forced to eat pet food and had suffered burns all over their bodies due to the nightmarish abuse that they had received from the couple that adopted them.
The 15-year-old boy in this case told authorities that at one point he was forced to live in a plastic dog carrier for two months and that all three of the children have had their tongues burned with a hot spoon by their “parents”.
The following is how CNN described some of the abuse that these children were subjected to….
Authorities said the Kluths are accused of burning the children with hot spoons, choking them and locking them “in the storm shelter behind the residence for long periods of time with only chairs to sit in and plastic buckets for bathroom use. It was also alleged that the Kluths deprived the children of meals for punishment and fed them cat food and dog food,” according to a statement from authorities.
Can you imagine?
As Americans, we like to think of ourselves as “good people”, but is that really true?
In the United States today, the percentage of the population that is in prison is more than ten times higher than it is in Japan.
Part of that is because the U.S. is rapidly becoming a “Big Brother” police state, but we also have to admit that the American people don’t seem to be made of the same “stuff” that they used to.
Something has gone dramatically wrong.
We have lost our way.
Is this country going to be able to handle another Great Depression?
Right now more than 43 million Americans are on food stamps. This is helping keep the population under control. But what is going to happen when the price of food goes up 50 percent and all of these millions of people can’t even feed themselves anymore?
That is a frightening thing to think about.
Most Americans have never known hard times. Most Americans cannot even imagine what deep economic suffering is like.
When the U.S. economy does completely unravel, it is going to blindside most of the population. Many Americans will go completely crazy when they finally realize that the “good times” are gone and are never coming back.
What we are seeing in Wisconsin right now is only a very small foretaste of the kinds of economic protests that we will see in the future. There are tens of millions of Americans that are just not going to quietly accept that their affluence is gone permanently.
Unfortunately, the time to start saying something was years ago. Our economy is being gutted right in front of our eyes and yet most Americans just keep on voting for the globalist politicians that continue to ship our factories, our jobs and our prosperity overseas.
Believe it or not, cities like Detroit, Michigan were once the envy of the world.
In 2011, the rest of the world laughs at Detroit. It has become a global joke.
And you know what?
Hundreds of other communities across the United States are being slowly but surely transformed into new Detroits.
Today, there are many towns across the United States where you can almost reach out and feel the despair. It is almost as if someone has sucked all of the hope right out of the atmosphere.
People are getting desperate. As the economy crumbles crime is only going to increase. In fact, many of our biggest cities have large areas where residents simply do not ever want to venture outside after the sun goes down. Life is getting crazier in America with each passing year.
The America that so many of us so fondly remember is being rapidly destroyed.
So what do you all think? Are mob robbers and rampant looting the future of America? Are people going to go crazy when the economy collapses or are Americans going to be able to handle it fairly well? Please feel free to leave a comment with your opinion below….