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The Federal Reserve Sends Thank You Letters To Congress For Allowing Them To Destroy Our Economy In Secret

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The Federal Reserve continues to pump up this “bubble economy” by recklessly printing money and by setting interest rates artificially low, and the U.S. Congress continues to stand aside and allow them to systematically destroy our economy.  The U.S. Congress could choose to end this madness at any time, but the truth is that Congress won’t even pass a law that would allow the American people to see what is going on over at the Federal Reserve.  Congress has voted down every single bill that would authorize a comprehensive audit of the Federal Reserve.  So the folks over at the Fed will continue to be able to destroy our future in secret.  In fact, back in July Federal Reserve Chairman Ben Bernanke actually sent five thank you letters to members of Congress that gave speeches on the floor of the U.S. House of Representatives encouraging their fellow lawmakers to vote against the bill to audit the Fed.  Since the U.S. Congress continues to refuse to do anything to hold the Federal Reserve accountable, the Fed will continue to print unprecedented amounts of money, it will continue to set interest rates insanely low and it will continue to pump up the greatest debt bubble in the history of the world.  Unfortunately, all debt bubbles eventually burst, and when this one does it is going to be a financial nightmare unlike anything we have ever seen before.

It was Politico that first broke the story about the thank you letters that Federal Reserve Chairman Ben Bernanke sent to five members of Congress back in July.  Bernanke acknowledged in the letters that there was never any worry that the “Audit the Fed” bill would actually get through Congress and be signed into law, but he was still extremely grateful that a number of members of Congress got up and publicly denounced the bill….

In July, the Fed chairman sent letters of gratitude to five Democratic members of Congress after they delivered speeches on the House floor urging fellow lawmakers to reject the “Audit the Fed” bill authored by retiring Texas Republican Ron Paul, the central bank’s chief antagonist.

Their efforts failed to defeat the bill, but they were not in vain, at least in Bernanke’s eyes.

“While the outcome of the vote was not in doubt, your willingness to stand up for the independence of the Federal Reserve is greatly appreciated,” Bernanke wrote in the letters, which were obtained by POLITICO through a Freedom of Information Act request.

So who did Bernanke send those letters to?

According to Politico, the thank you letters were delivered to U.S. Representatives Barney Frank, Elijah Cummings, Melvin Watt, Carolyn Maloney and Steny Hoyer.

By refusing to take action against the Federal Reserve, the U.S. Congress is silently endorsing their incredibly foolish policies.

Sadly, most Americans don’t even realize that the Federal Reserve has more control over our economy than anyone else does.  Most Americans that are actually concerned about politics are busy arguing over whether Obama or Romney will be better for the economy when it is actually the Fed that controls the levers of economic power.

Just think about it.

The Federal Reserve played a major role in creating the housing bubble which severely damaged our financial system a few years ago.

As the chart below shows, after 9/11 the Federal Reserve dropped interest rates to historically low levels.  This allowed potential home buyers to get into much larger mortgages, and the big banks (which the Fed supposedly “regulates”) started making home loans to almost anyone with a pulse.

When interest rates started to go back up to normal levels in 2005, many home owners discovered that their adjustable rate mortgages started to become much more painful.  By 2007, we started to see a massive wave of mortgage defaults.  In 2008, the financial system crashed.

In response to the financial crisis of 2008, the Federal Reserve dropped interest rates to record low levels.  The effective federal funds rate is essentially at zero at this point, and the Fed has promised to keep interest rates at ultra-low levels all of the way into 2015.

But didn’t artificially low interest rates cause many of our problems in the first place?  The central planners over at the Fed are convinced that this is the right course for our economy, but can we really live in a zero interest rate bubble indefinitely?  Won’t this eventually cause even greater problems?….

The Fed is also destroying our economy by recklessly printing money.

Once upon a time, the U.S. monetary base rose at a very steady pace.  But since the financial crisis of 2008, Ben Bernanke has been flooding the financial system with money and this has caused an unprecedented explosion in our money supply.

It isn’t too hard to see from this chart what the foolish “quantitative easing” policies of the Federal Reserve have done to our monetary base….

Fortunately a lot of the money from previous rounds of quantitative easing is being stashed by the big banks as “excess reserves” with the Federal Reserve, but when that money starts flowing into the “real economy” (and it will at some point), we are going to have a major problem on our hands.

But more than tripling our monetary base was not enough for Bernanke.  He recently announced yet another round of quantitative easing which he says will last indefinitely.

Basically, Bernanke is taking a sledgehammer to the U.S. dollar.  Our currency is being systematically destroyed, and the U.S. Congress is standing by and doing nothing.

For a lot more on why QE3 is going to be so incredibly destructive for our economy, please see the following five articles….

-“QE3: Helicopter Ben Bernanke Unleashes An All-Out Attack On The U.S. Dollar

-“How QE3 Will Make The Wealthy Even Wealthier While Causing Living Standards To Fall For The Rest Of Us

-“The Federal Reserve Is Systematically Destroying Social Security And The Retirement Plans Of Millions Of Americans

-“QE4? The Big Wall Street Banks Are Already Complaining That QE3 Is Not Enough

-“Quantitative Easing Did Not Work For The Weimar Republic Either

The Federal Reserve seems to think that printing more money is always the solution to whatever economic problems we are having.

But of course the Fed has been debasing our currency from the very beginning.  The entire Federal Reserve system is designed to create inflation.

From the time that the Federal Reserve was created back in 1913, the purchasing power of a U.S. dollar has declined from $1.00 to only about 4 pennies today.

And now Bernanke seems bound and determined to wipe out those last 4 pennies.

The Federal Reserve system was also designed to create a never ending spiral of government debt.

Sadly, most Americans simply have no idea where money comes from.  Most Americans have no idea that money that the Federal Reserve zaps into existence out of thin air is loaned to the U.S. government at interest.  Most Americans have no idea that the primary reason why we are 16 trillion dollars in debt is because this is what the system was designed to do to us.

Today, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was originally created in 1913.  This did not happen by accident….

Not that our politicians should be off the hook for this.  They have been spending money as if there is no tomorrow.  Most of them have shown no concern at all about the legacy of debt that they are passing on to future generations of Americans.

If our politicians had been more responsible, the national debt would still be there, but it would be at a much more manageable level.

If we ever want to totally get rid of our national debt, the Federal Reserve must be abolished.

There is no other way.

And government debt is not the only bubble that the Federal Reserve has pumped up.

The following is a chart that shows the growth of all forms of debt (government, business, consumer, etc.) in the United States.  The total amount of debt in the United States has grown from less than $2 trillion to more than $55 trillion over the past 40 years….

How in the world could we have been so foolish?

How in the world did we allow the total amount of debt in our country to get more than 27 times larger over the past 40 years?

As you can see, there was a slight “hiccup” in the bubble as a result of the financial crisis of 2008, but now it has started growing again.

At this point our entire financial system is based on debt, and if the debt bubble does not continue to expand the entire thing will collapse.

But no financial bubble grows forever.  History has proven that to us over and over.

At some point this bubble is going to burst.

When it does, we will either experience a deflationary collapse or a hyperinflationary collapse depending on how “the powers that be” respond to what is happening.

History has shown us that financial collapse is often accompanied by social upheaval.   Many times it even leads to war.

So what will happen to America when our economic collapse happens?

That is a very good question.

How would you answer it?

  • tappedops

    Romney Will Cut, Cap, & Balance The Federal Budget.NOT………………

    Donate $8 Now to me cause im a truther/birther/tenther/seconder/endfeder and ive done more for this NAU than the last 4 prezes combined…

    ps— im not trying to get banned…im just joshing with you Mr.M…

  • Mondobeyondo

    You DO know what the opposite of Progress is……?!?!

    • 742

      The Republican & Tea Party’s in this country? Others of similar objectives in other countries?

    • Sure, it’s regression, brought to you by the Regressives.

  • KL

    WOW… I just don’t understand the ignorance of our congress. They are seeming more and more heartless everyday. At this point I’m not worried about me. Its my little girl, what will her future be. Thanks again Mike, I will no doubt share this one with my readers. I still want to see your input on the Israel and Iran situation. I believe the economic collapse will be sped immensely when war breaks out over there. I wrote about it on my site, link provided below. Again can you do a piece on this, would love to get your opinion.

    Here is the link:

    • KL

      Not to mention take Netanyahu’s Red Line and The Iranian General mentioning things like world war three. Things are looking so grave for the world over the next four years regardless of who’s in office.

      Here’s the link regarding Iran’s General talking World War III

    • Gary2

      congress is nlot ignorant. They are simply doing what the rich MF whwo fund elections want them to do.

      Also think on this:

      If you want to see what’s wrong with America take a good look at the nauseating list of the 400 richest Americans – the Forbes 400 . While the economy struggled to create jobs, it was another banner year for the super-rich. They increased their collective wealth by a whopping $200 billion, which is more than enough to provide every student in the country with free higher education.

      Tax the wealthy to give us free education.

      • Rodster

        “Tax the wealthy to give us free education.”

        ….and free Obama phones, Obama money, free food stamps. 😉

      • Alvin

        You truly do not get it. It is the Liberals who are making the Big Corporations richer.
        They pass requirements making it almost impossible for a small business to make it.
        That allows the big companies to charge whatever they want, the Democraps then get generous campaign contributions from the big companies like GE – who end up paying no taxes, and big companies end up having unions which drive up prices ( more money to dems and less new jobs). It is the Democraps who support the wealthy and do their bidding, look at all the big companies who got exempted from Obamacare, all democrap supported companies. As for Education, First a Trillion dollars in student debt means that the universities are getting rich. Goggle Harvard endowment, it’s over 30 billion. Point #2, education means nothing if your degree is not useful, we need doctors & engineers not social reformers and degrees in transgender studies. Lastly, we have lots of “educated” people but not enough jobs, they all can’t work for the gobberment.

        • ALVIN! B-E-A-U-T-I-F-U-L! All the big companies,banks,credit companies,universities,communications,oil,pharmaceuticals are walking all over us because of U.S. government backing. If “OUR’ government was for the PEOPLE, just imagine! And just in the last year, I`ve come to realize that its the universities that are costing us so much For health care. They need a zillion dollars to train one doctor? Oh so B-E-A-U-T-I-F-U-L.

      • MarkieMark

        The rich have seen their fortune grow the last several years primarily due to the Fed’s policy of keeping interest rates low and printing gobs of cash. This along with Stimulus money that flowed mostly into top corporations like Fannie Mae.
        Banks have been able to borrow money at the Fed Discount Window at .02% then turn around and put it right back into Treasuries at 1.50 to 2.50%. Not a bad return for no risk and not much effort.

  • You can only rationalize this situation, by understanding that it is being done intentionally. Iknow a lot of people don’t believe that ,however.WAKE UP AMERICA!!!!!

  • Mondobeyondo

    Okay class! Today, we’re having a history test! Hope you pass it!
    Let’s examine a typical college student and the U.S. government:

    College student: Has dreams of success and prosperity in the future.
    U.S. government: Has dreams of success and prosperity in the future.

    College student: Takes History 101 class. Learns little to nothing.
    U.S. government: Takes History 101 class. Learns little to nothing.
    (Ben Bernanke is supposedly an expert on the Great Depression, but he’s repeating the SAME MISTAKES that prolonged the Great Depression!!)

    College student: “Hi Mom and Dad! I’m broke!!” Mom and Dad give him/her extra cash. Wastes his/her money on getting drunk, parties, hanging out with the opposite sex, etc. etc. Life is good!

    U.S. government: “Our fellow Americans! Your government is broke!” Taxpayers give it extra cash. Wastes our money on TARP, bailing out banks, failing automakers, corrupt Congress critters, Fannie Mae, Freddie Mac, etc. etc. And not only that, they’re asking us fellow Americans for MORE MONEY!! Life is good! (But it won’t be for much longer. Not for them, and not for We The People either. Trust me on that.)

    So, you see, there are some similarities between college and government. One thing not mentioned: Going to college these days is incredibly expensive. So is running for public office.

  • Mustard Seeds

    1. How in the world could we have been so foolish? How in the world did we allow the total amount of debt in our country to get more than 27 times larger over the past 40 years?

    A. Because for decades, Americans have elected people like U.S. Representatives Barney Frank, Elijah Cummings, Melvin Watt, Carolyn Maloney and Steny Hoyer….and Republican Representatives just as guilty of protecting the globalist elites and hiding the truth from the American people.

    B. Because we have an education system that has transformed into an indoctrination system over the last 40 years.

    C. Because people actually believe A and B above is good and that the government will save us!

    2. So what will happen to America when our economic collapse happens? Everything you mention

    A. Collapse

    B. Social upheaval

    C. World war

    D. Mass extermination as a result of thermo nuclear bombing and rationing of energy/food/medical resources

    • Alvin

      The best Gobberment, education system and media that money can buy.

    • Donald Wilson

      That’s only for starters. Lrt the good times roll.

  • Silver Bean


  • The Devil is dealing the cards in this game and it is going to be a hot one!
    As for my answer to it all is to keep on prepping and the hell with chopper Ben and his diabolical henchmen (congrtess)

    • Donald Wilson

      Game over man game over!!!

  • Imaplaneiac

    Will CON-gress inevitably authorize the phrase ” In Ben We Trust ” to be added to US – I won’t say ” our ” – currency?!

  • mark

    The super wealthy will not give up their wealth and power. So deflation will not be allowed to take place. They hope to have moderate inflation of 3% per year and a slow write down of debt. This will hurt the middle class as they pass the inflation and more government debt onto the middle class taxpayers. The banksters grow their money buckets as the Fed steals what little wealth we have left. This will blow up in their face.

    • Donald Wilson

      End game the elimination of the middle class.

  • PD

    I would answer by saying that due to your course of action(s) this is the treatment for the disease you have self inflicted.

    You gorged and overdid everything in your lives, your society and in your economy. Now, you are going to benefit from the consequences by seeing the number of fast food restaurants cut down to 5%, # of malls cut to 5%, number of cars and cell phones cut to 5% and just about everything else cut to 5% or less of todays numbers.

    The alternative is to use credit and funny money IOU’s to double the numbers of everything every 18 months until it does collapse anyway.

    We are going to get “fixed” and the pieces are going to drop off onto the floor where they belong. The “end” is coming….but it’s the end of smiling real estate agents, dooshbags walking around @ 3X required volume on a cell phone,fourteen chickens in every pot, twelve cars in every driveway and 33 credit cards in every wallet.

    All of us are going to become more self reliant and more frugal. We are going to reawaken our senses and become more responsible too. But first, we are going to be beaten, robbed and then beaten and robbed some more. Eventually, we will turn into what we used to be and cease to be what we are.

    • Irritable

      Who is “we” — does this refer just to the United States or everyone in the developed world?

      I tend to have issues with posts from people who use the “we” versus us and vice versa, because frankly we’re all in this together. I understand that Americans are not well-liked, but you know what, I’ve traveled and lived in many countries, and it’s not like people are saints anywhere else either.

      Also, this comment doesn’t make sense because if you eliminate that many fast food job positions, and all the other jobs you mentioned to only about 5%, that means there’s going to be a hell of a lot of unemployed people — you’re talking big fat collapse right there and then. There would be major riots, death, and hell itself on earth before the numbers could get that low.

  • K

    So what will happen to America when our economic collapse happens? In the cities, hell on earth. Countryside tech wise 1920’s.

    • iraq and afgan vet

      what can happen is the following…recall the maps highlighting addresses of hollywood celebrities? try dissemination/distribution of maps into hands of armed mobs, highlighting addresses of politician, media talking heads, bankers, and other traitors responsible for these crimes. the american revolution is coming to a town near you.

  • Bad Dawg Bobby

    Expand??? I hear a loud ,,HISSING Sound.

    • Mondobeyondo

      Well, maybe that’s better than that “giant sucking sound” Ross Perot talked about so many years ago. Any way you look at it, the air is being let out of the U.S. economic bubble, um, balloon.

  • Louise in MO

    What do I thik will happen? I believe it will result in a Depression closely followed by a World War, most likely nuclear. The Middle East is on fire and they hate our guts. Obama’s policy of apeasement and apology has made it far, far worse.

    We will be handicapped by the fact that we have not taken advantage of our own oil and natural gas. Obama’s war on fossil fuel guarantees Americans will be hamstrung. If there are any jobs,people will have to walk or use bicycles to get there.

    The coming war will include nuclear weapons and biological warfare. We will be dealing with jihadists fanatics who believe that to annihilate all westerners and jews will usher in their Messiah, the Madhi.

    To re-elect Obama GUARANTIES that this will happen sooner rather than later. Our future is bleak, very bleak. Notice I said sooner rather than later. Romney is a better choice, but even he cannot overcome the catastrophe to come; he just won’t lie about it!

    • Nexus789

      To be frank electing Romney will not produce an alternative outcome. Romney and Obama are the puppets of the same puppet masters. The ‘elites’ that really run the US.

      The US is an empire and crushes any nation that challenges its national (empire) interests. The US is not a benevolent light of morality and democracy. It is the purveyor of continual war against continually evolving imaginary enemies it creates to further its interests. We now have the perverse situation of the US giving $50m or so to al-Qaeda. Presumably to murder, rape and terrorise the people of Syria. I guess people get angry when they have their families killed, businesses ruined, countries destroyed.

    • iraq and afgan vet

      what will happen? lol..well 1.4M active and reserved military personnel, exhausted from multiple duty tours of illegal wars benefiting the criminal bankers and much wiser, which explains why our govt has listed them as domestic terrorists, will call in sick when the SHTF. leaving over weight, balded head TSA and DHS goons to defend there criminal employers against 1.4M military personnel plus a population equipped with greater than 350M guns. lets face it….when the SHTF, the underpaid local law enforcement will be out of sight, hiding, just like rodney king LA riots and new orleans katrina episodes. trust me when i say, there is strength in numbers…nobody desires this reaction when violated, but they’ll get whats coming to them. they can run but they cant hide, they have to come out eventually or be flushed out.

    • David

      Dude, whatever. Romney is an idiot like the rest of them. He won’t lie about it???? He is lying everyday on the campaign trail, why would he stop now. It does not matter who is elected the damage is already done by both parties. Get a life and wake up

    • Gay Veteran

      “…The Middle East is on fire and they hate our guts. Obama’s policy of apeasement and apology has made it far, far worse….”

      well Louise, you need to get a clue. They hate our guts because we support the dictators ruling their countries and kill innocent Muslims.

      We use about 20% of the world’s oil and yet only have about 2% of the world’s oil reserves. You do the math.

      “…If there are any jobs,people will have to walk or use bicycles to get there….”

      considering how grossly fat many Americans are that would be a plus

      “The coming war will include nuclear weapons and biological warfare. We will be dealing with jihadists fanatics who believe that to annihilate all westerners and jews will usher in their Messiah, the Madhi.”

      you forgot to mention Christian fundamentalists who want the Rapture. the kooks are not all on one side

      “Romney is a better choice, but even he cannot overcome the catastrophe to come; he just won’t lie about it!”

      ALL politicians are liars

    • Nobody

      Louise in MO:

      I hate to burst your Tea Party bubble,but there is this thing called Peak Oil, and the fact that US oil production reached a peak of roughly 9.5 mbl/day production, back in DEC of 1970 (US EIA, IEA). US oil production has gone into irreversible decline since. This is not debatable. Oil fields get old, lose pressure, and get depleted. Texas peaked in production back in 1972. Alaska only produces around 600,000 bl/d, after hitting a peak of 2 mbl/day in 1989. I hope your not lying to your kids or grandkids, telling them that we’ll be energy independant, someday.

      And it’s not the Jihadists. We’ve done this to ourselves.

  • Brian

    Could you do an article with all of the disturbing charts (like many of the above) that we could share with our doubter friends that only look at the publicly available charts (like unemployment)?

    They see unemployment rates, I see employment ratio. They see deficit, I see total debt and unfunded liabilities. Etc…

  • Brian

    PS – I would love to see it cover a variety of topics in one article to show them that things aren’t as the government would have them believe.

  • Kevin2

    If the outcome of collapse is deflation those with assets can house and feed those family members that have nothing.

    If the outcome is hyper inflation everyone is taken out and there will be equality of poverty.

    • Nexus789

      Not totally as there will still be value in physical assets – property, precious metals, etc. I agree that any ‘financial’ based assets will be eroded by inflation.

  • markthetruth

    In reality there was no hiccup in 2008 and the chart because it doesn’t include the 16 trillion in secret Fed bailouts .

    the end.

  • nowwthen

    So what will happen to America when our economic collapse happens?

    Well, in the early stages the have nots will attack the haves — the preppers. The preppers will seem to be winning the first round until a well publicized act(s) of violence in self defense causes what’s left of the government to get involved. The media and clueless authorities will hype this (these)as hate crime in an attempt to justify their over reaction. The national guard will be mobilized to seek out the haters (preppers) and neutralize their ability to defend themselves against the unprepared starving marauders. Some in the guard will not go along with the orders to criminalize their countrymen and that trend will grow. The whole mess will escalate with a breakdown of order and civil disobedience becoming the norm. Active military will become involved and their loyalties will be split as well. Without much to lose people will rationalize and justify whatever they need to do to to ensure the survival of their families. Barney Frank will get a divorce.

    • iraq and afgan vet

      what should happen is the haves an have nots unite and rebel against the traitors of this once great nation, whom aim to steal our 401k, our social security, our pensions, and maybe even our personal banking accounts. these are also the same traitors whom proclaim us as domestic terrorist for having > 3 days of food and are self reliant. there is a reason why the feds have ordered 1.5B hallow point rounds since march 2012 and issued dozens of executive orders intended to take over and take away our freedoms. I forsee the exhausted military, the over the hill aged out national guard, and the under paid local law enforcement calling in sick,leaving only the private security firms hired by the criminals to fend off a nation of 500M guns. this is how i see it playing out.

  • Prepared Painter

    Complete meltdown… then reboot. Probobly the best thing for our country right now. It saddens me to say that I am glad to see this accelerating, I am sick and tired of sitting around waiting and trying to eek out a living, I have closed my business, sold all but one car, sold everything I dont need to live, and am still paycheck to paycheck hoping I dont get laid off. All this while living very frugally. WTH, lets just get it on and see if liberty wins or if we all cower and let the tyrants rule. It doesnt matter who wins in Nov, so lets get this whole thing over with. Thats my rant, Im glad I still have the liberty to post it. God bless America and down with the fascist bastards that have destroyed our childrens future.

    • iraq and afgan vet

      that reboot will result in our 401k, private banking accounts, social security and pension dissolving…into the private bank accounts of the criminal bankers and politicians…and when it happens, equip inner city gangs and angry ******** mobs with the tools and addresses of those responsible, including main stream media presstitutes. 500M guns in this country plus some pissed off vets now labels by the govt they served as domestic terrorists. this will be ************ of the madison and pennsylvania suit wearing criminals. they are going down

  • GA

    It is all completely unsustainable and they know it. The legislation, regulations and executive orders that are being implemented are precisely for this reason, to control the masses when the collapse occurs. What few true liberties we still have will be wiped away and the republic that we knew will no longer exist. Pain and misery are certain. Make sure you prepare yourself and your loved ones. Prepare expeditiously!

    “A private central bank issuing the public currency is a greater menace to liberties of the people than a standing army.”-Thomas Jefferson

  • Irritable

    I’m undecided on whether the collapse is semi-slow and gradual, or else that it’s going to be a dramatic collapse as some very imaginative people leaving comments in past articles have demonstrated.

    Personally, and this is just a subjective viewpoint, I think the collapse is gradual, but it’s a fast collapse, not slow by any means. It only took a few years for us to get to this point, so little by little, just like the riots going on in Spain, Greece, et al, and the people withdrawing their monies there too, it will come to the USA and Canada as well. Mexico too of course.

    It’s funny though, and I’ll just mention this only because it comes up every once in a while — I know some middle-class Mexicans who think their economy is fine, but I’m sure every single country will be affected in the end. I’m not quite sure why some people (i.e. Mexicans) think they will be “fine.” I wonder if they have any common sense. It’s very difficult to imagine they cannot see what is happening. How can anyone not see what is happening?

    • Nexus789

      A couple of institutions have built models that are pretty accurate. These models predicted food riots around the world in 2008/2009 and have predicted that rising food prices will trigger the same effect globally when they start to peak in 2013. So the decline is in slow motion but may be triggered by any number of ‘shocks’. A war for instance in the Middle East, or the collapse of a bank that creates a domino effect across the global financial system.

    • joshc

      you act like the collapse isnt happening, it is everyday. here in the u s a. stop listening to the media, 20% unemployment, record amount of people on assistance. its a fing depression out there.

    • Mondobeyondo

      Hard to say, with any certainty. It could go either way, gradual or rapid collapse – but our present economic circumstances are rather unique.

      You could use history as a guide – Weimar Germany fell pretty fast. Zimbabwe a few years ago collapsed quickly as well, as did Argentina in the early 2000’s. But not since the Roman Empire have we seen an entire global superpower go belly up due to its own excess and overspending. It took the Roman Empire a few hundred years to fall apart. We don’t have that much time. I might be wrong about that, as I have not studied Alexander the Great or the French Revolution that much.

      I’d bet on a fast crash, based on what the people at the Federal Reserve and other central banks are doing. And I’m not into specific predictions (my crystal ball is cracked), but it could happen anytime between October 2, 2012 and March 27, 2019. Just prepare accordingly.

    • John Mauldin says it could be like a sand pile and putting more and more sand on top all the time. Eventualy, there will be an avalanche, and it will happen all at once.

  • tappedops

    Your a good sport Mr. M…

    Heres the bottom line…

    All three branches are fed run and tapped…

    Play along and live in their Pdish…

    Talk ____ anytime, anywhere and get warned…

    Blow a whistle and have a car wreck…

    Dont blame them….when there is no ******** in your backyard…

  • tappedops

    I was going to leave well enough alone—but screw it… the last line should read…

    Look what happened to Ron Paul…

    Nuff said…

  • Mark

    Just a few thoughts…

    When I was growing up I was asking my dad where money came from and why they can print more money so that my dad can buy more stuff. I don’t remember his answer on where money comes from but, for the second part he said too much money will hurt the economy. I really didn’t understand that more money does not equal to more goods in the economy, but higher prices.

    While I was cooking dinner for myself and my daughter I was cooking chicken. I have brought a package of two chicken breasts at the grocery store for $7.00. It wasn’t too long ago that $7.00 would have brought three chicken breasts. My five year old daughter was commenting on how there was only two chicken breasts.

    • Mondobeyondo

      Just wait when milk reaches $6.00 a gallon. Yes, I heard that on the radio this morning. Supposed to be by autumn 2013.

  • McKinley Morganfield

    I see the eventual collapse rapidly unfolding when the panic starts. IMO, the collapse will, from start to finish, be over in a matter of days or perhaps weeks once the initiating event occurs. It will start with a sovereign (acknowledged) default or a big bank in Europe. Then we will see that bad news travels like wild fire.

    There is no hope or change in the political process. All we can do as individuals is prep and stay frosty.

  • salvadordaly

    OK Michael, what am I miising here? The Bill from Ron Paul was passed (H.R. 1207, 327-98 votes) in congress. Now awaiting a vote in the House which was delayed (conveniently) by no other than the corrupt, worthless, POS, Harry Reid. Who about 20 years ago was calling for the same legislation. By the way America, why aren’t you calling on him to show his tax returns?

    • Michael

      The House passed the bill knowing that there was a zero percent chance that it would get through the Senate or be signed into law by Barack Obama.


  • MeMadMax

    I give us 10, 15, MAYBE 20 more years, depending on who is president.
    Why on who is president?
    Well, they are like the throttle, obama pours it on and others slow it down…
    But, in the end, the end will happen anyways(lol).
    Like they say “all good things must come to an end”…
    It’s amazing how history repeats itself, romans in particular. We are doing the same things as them, but at a much more breakneck pace…

  • Cranky01

    The Federal Reserve Bank of America is a private bank just like Chase etc, why does it have so much power? Who gave it that power? The us fed gov needs its own financial institution that it can use to control monetary policy, the fed reserve is biased towards the market rather than the people and colludes with other institutions as a “player” not as a regulator .

  • chiller

    In the end, if it turns out this crashing of our economy was done purposefully, it would be considered treason and all involved, even if they only said nothing and knew about it, will be tried, convicted and hung by the neck until dead. There will be no attorneys, no waivers, no appeals. The people will act as judge, jury and executioner.

  • Bill

    I’ve written before that a stock market “crash” is unlikely and I’m holding to my guns because the stock market is one of the places where all that fiat currency is being invested, which is artificially inflating equities markets. But again, this is not telling the whole story. As a person who monitors the investment portfolios for large companies for a living, this is how I see things going down in the next 12 months.

    1) With intersest rates at historic lows and the Fed printing money like crazy, big banks and institutional investors have been pumping the stock and bond markets full of cash. With interest rates on bonds pre-2010 still in the 3-4% range, this is a sound strategy.
    2) New bond issuances are producing yields of less than 2%, so in order for investors to make more money on their portfolios, they’ve been turning to stocks and commodity markets. That’s why we’ve been seeing oil, gas, and agricultural prices go up even before the US drought.
    3) Now that the older “higher yield” bonds are maturing and new issuances yielding such low returns, investors are going to start looking for other ways to “produce alpha” in their investment portfolios. Banks will start lending again to consumers.

    That’s a good thing, right? Wrong!

    Right now banks are sitting on trillions of dollars in excess reserves. If they start lending out that money en-masse, inflation is going to go nuts! Banks opperate with “mob mentality”. Right now, they’re flooding cash into the stock market because the bond market has hit a plataeau. (Why else would Emperor Ben feel it necessary to buy billions in Mortgage-Backed Securities?) Once that levels off, they’ll all move on to something else at the same time, which I believe will be consumer debt at really low interest rates, which will flood the economy with currency. At that point, even if the Fed stops printing money it’ll be too late because the economy is already awash in cash. As dollars become less and less valuable, banks will lend out more and more of it in order to maintain their profit lines.

    Meanwhile, consumers will also be awash in worthless cash, while at the same time their wages will remain mostly stagnant and they’ll owe more of their net worth to their corporate masters. What I hope will emerge out of this chaos is the introduction of an alternative currency that’ll be backed with assets of tagible value (probably not gold or silver but I don’t know what) that consumers will start using so they can avoid the maddness of using worthless dollars. This new currency will eventually replace the dollar and Emperor Ben will finally be relegated as one of the villians or “fools of history” that he deserves to be.

  • Brian

    It happens in fits and jerks.
    Generally a slow fall over time…..with occasional quick mini-falls because another leg has been kicked out from under us. Until the bottom falls out.
    What was that game where you pull out one stick at a time until the whole pile comes collapsing down? 🙂

  • the human race is a disease to break down the planet like every other organism it should be done with order or just burn it down now i dnt ************** care

  • 742

    It’s all leading to a global bankruptcy.

    There are not enough mobile/transferrable assets, i.e. gold, to cover the bad paper that’s been written for 67 years by all of the politicians, all over the world.

  • How many Americans know that the Federal Reserve is privately owned?

    How many understand the consequences of that private ownership?

    The Fed is owned ultimately by a few big private banks which are, in turn, owned by people like the Rothschilds.

    The implications of this need to be imparted to the American people. That’s not easy when the people who are milking the system also control the media and the education system. Not to mention your Congress.

    It’s people like Michael on this blog, his namesake Michael Moore, Charles Ferguson (Inside Job), and Paul Grignon (Money as Debt) who are the only barrier to the 0.001% continuing to pillage the USA and the world.

    You people have the power.

    Time to use it.

    • Mondobeyondo

      The Federal Reserve is also unconstitutional. Few people in the federal government seem to notice that. Oh, they know. These people went to Ivy League universities and prestigious colleges. They are not stupid.

      The ones that do care, with very few exceptions (Ron Paul), are paid off with a nice check courtesy of B. Bernanke.

  • markthetruth

    Think of this way the only way their is any growth is because we throw out good working items because they look old not because they don’t work. What we are doing as a county is we keep trowing out good and putting in new. We are just wasting our money.


    1. 1 year old Applebees goes out of bussines ,new buyer tears down building to put up his new whatever. One good building wasted

    2. Our road are paved in sections because to much traffic . So cold patches are created and within a year crack and take in water and in the winter freeze and thaw lifting and cracking the roads . Besides the utility companies digging up the roads and only patch them.

    3. Military we started with bows and arrows now we have nuclear but in the end we gained nothing .

    4. we created fish finders but only to catch more fish and deplete them.

    5. we use technology to create one cause only to create another disaster .

    6. everything we have put on top of the earth is now missing from inside it.

    7. we use technology in sports like golf to make the clubs and balls easier to hit and ball to go further only to have to make the course longer and more difficult.

    8. Medical advancements have made our average living age go up but are these ages of a good functional living years. We have more nursing homes , assisted living and therapy places. For more disease like dementia,Alzheimer’s, diabetes and other debilitating medical conditions that they can’t live a normal function life but are alive. American’s spends so much money on crap to try and look young they looks distinguishing look at Bruce Jenner is he wax already i can’t tell.

    9. Both parents working but only to have to pay a babysitter,nanny,after school,landscaper ,cleaning lady, have to eat out. After all that what do you take home.

    on and on in this world we are trying to defy the Theory of relativity. and it not possible!!!!!

    the end.

  • Imaplaneiac

    Fellow bloggers, here’s a link to the documentary ” Obama – 2016 “, by Dinesh D’Souza. It allows you to view the ENTIRE film; which is 1:27 min. in length. ( At no cost ). If you’re pressed for time, viewing the final 30 minutes or so will do! ( I just viewed the entire film ). The final few minutes concern the ” National Debt “; which Michael often writes about. I URGE you to view it and forward a link to your family and friends, ASAP! America mustn’t re-elect this DECEIVER! ****** – OWEbama MUST GO!

  • Washington
  • Imaplaneiac

    I meant to type ” due ” NOT ” do ” here: ” the final 30 minutes or so will do “. Maybe Michael will make the correction prior to posting my initial comments?

  • Digitizedmind

    What will happen in a complete and total economic meltdown…simply put, the TEOTWAWKI. So many people live their life day to day, being able to run to the nearest gas station, grocery store, Walmart, etc., to pick up what they need. Also, the public has become blissfully unaware of the unfolding situation as well as taking on a don’t care attitude. They genuinely feel that the Government will be there to bail them out, or that the R or D’s will fix the issue. From my vantage point, all I see is a continuing slide into the abyss, with the weight of our bloated debt increasing the speed of the decent. I heard an interview by JWR, that stated he expected an 80% die off. This die off would be a combination of violence, starvation, out of shape public and people who are dependent on their medications. As our collapse continues (we are in it now), the speed of changes will accelerate and so many will be caught woefully unprepared. In short, it will knock us back to the early 1900’s in some aspects, since internal violence, government suppression, material breakdown, etc. will destroy our remaining infrastructure. Scary times ahead and unfortunately, it is already too late. There is absolutely no way to fix this problem, even if we employed the proper procedures on the home front. We are so globally intertwined now, that what happens overseas will inevitably affect us.

  • Kevin2

    The ostrich putting it’s head in a hole does what many people do. Often it’s human nature when confronted with something of a catastrophic nature that you can do nothing about you just ignore it and hopefully it will go away. Many more have no understanding because they were never curious about anything beyond people and things with concepts and ideas far above them.

    The power elite depend upon the above and intentionally label their institutions and activities in such a fashion to confuse their structure and purpose. The greatest example is The Federal Reserve which is neither Federal or in possession of a Reserve.

    • Gary2

      hey kevin2–Google the film “death by China” I think it is something we can all agree on.

  • JustanOguy

    What a surprise… Thank you Letters sent to some of the same idiots who helped create the real estate bubble in the first place…

    Most notably Barney Frank who was screaming that there was no real estate bubble back when something could have been done about it to keep it from getting as big as it did.

  • Homer Simpson

    The FED is nothing but a smoke and mirror bank created to allow the politicians to squander and steal the treasure from the citizens of the United States. They create “currency” out of thin air The financial damage is already done, the FED is just additional medicine to prevent us from feeling the full effects. All the while those who have enacted the laws, enforced the laws, and those that actually wrote the laws have been building wealth and creating secure homes and land for themselves and their families for when things go bad. That is a normal human process even though it seems illegal at best. The American people should try and stay one step ahead of the FED and regain control of the wealth to force the government to maybe become a bit smarter with OUR money. Why are PUBLIC Servant employees now the highest paid, have the best pensions, the best healthcare and usually the least amount of hours not to mention actual work to do? We keep finding out about waste, fraud and stealing of tax dollars and breaking laws and everyone involved………simply retires and the Justice Dept “declines to investigate or file charges”? Wake up friends…prepare like they already have.



    • Mondobeyondo

      Yeah, I got my CD statement from [redacted] Bank yesterday.
      Total interest gained from 1/1/2012 to 9/30/2012:

      49 cents.

      Dang. I feel so…. wealthy.

      • DownWithLibs

        Rather than just bow that entire $.49 on junk, why not reinvest it. Just think, in about 2 million years (with compounding, of course) you will have something worth more than spit!

  • blueridgeviews

    So the Democrats in Congress don’t want to audit the Fed?

    Makes sense, without a growing economy to pay for Gov’t largesse you need a Fed that can print money and buy up the country’s debt.

    All is well. Sarcasm.

  • JackieG

    Loss of confidence in this “con” game is the central bankers unknown factor.
    It could happen tonight where, you wake up tomorrow and its all over.
    The banks are closed.
    Wall Street is closed.
    Every business is closed.
    Even the government, is closed.
    The only thing moving will be the troops in the streets.
    Over 189 country’s around the world are changing in their U.S. $ holdings for other currencies.
    That means the surf is up on both coasts and the waves are green with $$$$.
    EVERYONE’S RICH!!! for about a week.
    Then the price of a can of

  • Thank You for your help.
    In Helping us destroy America.
    Thanks Again!
    Did you ever think about all the Zombie movies, TV shows & they got Zombie guns, Zombie ammo, Zombie knives, Zombie survival kits etc, etc.
    Did you ever think they were preping US to kill ZOMBIES (other wize known as starving Americans). Check here for more ZOMBIE NEWS…
    When you don’t think of them as fellow starving American’s (BUT ZOMBIES)it dehumanizes them, making them easier to kill…

  • Let’s see how smart you folks really are:

    Suppose you’re on a game show, and you’re given the choice of three doors: Behind one door is a car; behind the others, goats. You pick a door, say No. 1, and the host, who knows what’s behind the doors, opens another door, say No. 3, which has a goat. He then says to you, “Do you want to pick door No. 2?” Is it to your advantage to switch your choice?

    • Mondobeyondo

      I’ll take the goat, thank you very much.

  • Wake up

    I don’t propose a federal budget. The President does. I don’t have the Constitutional authority to vote on appropriations. The House of Representatives does. I don’t write the tax code, Congress does. I don’t set fiscal policy, Congress does. I don’t control monetary policy, the Federal Reserve Bank does. One hundred senators, 435 congressmen, one President, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country. I excluded the members of the Federal Reserve Board because that problem was created by the Congress in 1913, and has yet to be corrected!!! Although the Federal Reserve Board is peppered with Low Life Criminals that Congress and the Senate allow to stay in power. And why $$$$
    I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a President to do one cotton-picking thing. I don’t care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator’s responsibility to determine how he/she votes. This in itself speaks loudly of the lack of quality people we have in POLITICS. Does it not?
    It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted — by present facts — of incompetence and irresponsibility. I can’t think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what Congress and the Senate want to exist.

  • Sufi


    “I wonder if they have any common sense. It’s very difficult to imagine they cannot see what is happening. How can anyone not see what is happening?”

    If people in the US don’t understand the Ponzi Scheme , how do you expect Mexicans to understand the ‘pronciples’ of the private Central Banking System.

    A huge and paramount deception is taking place and the main reason that people can still not see through the Cabal system is the Mainstream Media , which exactly functions as the Cablas wants it to function , by DECEPTION that is.

    May God Almighty help us.

  • Hell on Earth is Coming, Get Ready!

  • Washington

    Who do we owe TRILLIONS? Do we have it?

    Chinese Military 2012 – Hell March

  • Winston

    War is always how TPTB deal with this situation.
    Hyperinflation can be wrapped up in the flag and shoveled
    down out throats.A little UN revised history for everyone;
    The Japanese attack on Pearl Harbor was neither a surprise or unprovoked.
    Two months previous FDR embargoed oil and steel entering Japan.
    Embargo’s are always Acts of War. A Pearl Harbor was the desired result .
    FDR was itching to get into war.The total failure of his economic policies
    were becoming apparent, and cover was required.
    So here we are.Already in an undeclared war with Iran/Remember embargo’s are
    Acts of War,so are assassinations,drone over flights,cyber attacks etc.
    The dogs of war are off their leash.May whatever you believe in ,help us all.

  • Washington

    Mother Country Talks About Life During The Great Depression!

  • GSOB

    ‘FDR was itching to get into war.’

    How do you know that Winston?

  • Winston

    Just read any of his contemporary’s auto biography’s comments about him.
    Any politician even then was at least sociopathic,borderine
    Sadly most everything we believe and were taught is BS,
    nothing has changed ,we are like hamsters in TPTB owned wheel.
    Sheep for the shearing.

  • Tiggs

    It isn’t about over taxing the rich, its taxing everyone fairly. The rich make most of their money with investments then hide behind that 11% capitol gains tax. Throw that out the window and make income, income like the rest of us has to do! Oh and we mustn’t forget, most of your congress men and senators are in that income range. They set on the boards of those big companies. Toss all of them out and start over!

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