Insider Trading Is Perfectly Legal – But Only For Members Of The U.S. Congress

Did you know that insider trading is perfectly legal in the United States?  Well, not for 99.9% of the population.  It is actually only a very small percentage of the population that can legally indulge in insider trading – the members of the United States Congress.  In fact, a law that would ban insider trading by members of Congress has been stalled for years on Capitol Hill.  So why wouldn’t lawmakers in Washington D.C. want to apply the same rules to themselves that apply to the rest of us?  After all, how are we supposed to respect the integrity of those “serving” in Congress when they are playing by an entirely different set of rules?  The American people aren’t stupid.  They can see what is going on.  The truth is that there is a reason why approval ratings for Congress are at an all-time low.

The sad thing is that this issue has gotten very little attention in the mainstream media.  Nobody seems really that upset about it.  But it is a travesty that our lawmakers can legally make trades in the open market based on inside information that they have gained by being in positions of authority.  As the Wall Street Journal recently explained, they can generally make all the money they want off of insider information without any fear of prosecution because “insider-trading laws generally do not apply to lawmakers, leaving them free to trade on nonpublic information.”

But members of the U.S. Congress are generally in a greater position to influence the fortunes of individual companies than almost anyone else.  For example, certain members of the U.S. Congress may know that certain legislation is going to be introduced that would have a dramatic impact on the economic fortunes of a particular industry or corporation.  What would stop those members of Congress from making very profitable trades in the marketplace based on that information?

Nothing.  Nothing at all.

So, is there any evidence that members of Congress have been involved in this sort of activity?

Well, there is at least one study that seems to indicate that members of the U.S. Congress have been much more successful in the stock market than members of the general public….

A 2004 study of the results of stock trading by United States Senators during the 1990s found that that senators on average beat the market by 12% a year. In sharp contrast, U.S. households on average underperformed the market by 1.4% a year and even corporate insiders on average beat the market by only about 6% a year during that period. A reasonable inference is that some Senators had access to – and were using – material nonpublic information about the companies in whose stock they trade.

Of course Congress could stop all of this by simply passing a law that bans insider trading by our lawmakers.

But they refuse to do it.

Instead, it is likely that our “leaders” will continue to make millions of dollars by betting against the U.S. economy and very few people will even raise an objection.

In the upcoming Wall Street sequel, Gordon Gekko makes a statement that seems very appropriate for the world in which we now live….

“Someone reminded me I once said ‘Greed is good’ – now it seems it’s legal”

Fed Up

Do you ever get to the point where you are just fed up with the way that things are headed?  There are times when it seems as if we are all stuck in some kind of horrific nightmare that we can’t wake up from.  Day after day we get the privilege of watching our esteemed leaders down in Washington D.C. wreck the U.S. economy, push us towards socialism and globalism, and slowly erode our constitutional freedoms.  Day after day we get the privilege of watching corruption and greed run wild down on Wall Street.  Day after day those of us who are awake to what is going on find ourselves increasingly frustrated with the vast majority of Americans who are either too dazed, too drugged or too asleep to even care that the great nation that their forefathers built is in the process of crumbling all around them.  Not that there aren’t some promising signs out there.  Certainly Rand Paul’s recent victory in Kentucky shows that the American people are not automatically going to vote for the candidates backed by the establishment anymore.  But it seems like every piece of good news these days is accompanied by a dozen news stories that are so bad that they make you want to scream.  It is incredibly frustrating that tens of millions of Americans who bust their backs working incredibly long hours, who try to do what is right, and who truly do love their country are going to pay the price for the errors of a bunch of idiots down in Washington D.C. and New York.  The America that so many of us grew up in love with (the once great Republic with the greatest free enterprise system in the world) is being strangled out of existence by a horde of globalists, socialists and elitists.  Well, there are millions of us who are fed up.  I am fed up.  So today you are going to get an “editorial”.  Actually what you are going to get is an old-fashioned rant.  But the truth is that we live during times when ranting is appropriate.  Feel free to express your agreement or disagreement with the various things I am going to rant about below.  Hopefully if enough people start talking about these things, the American people will wake up and start taking their country back.

So exactly what am I fed up about?   

I’m fed up with politicians in Washington D.C. who prance around and talk about what a good job they are doing while they pile up the biggest debt in the history of the world.  We are stealing trillions of dollars from future generations, and if they get the chance they will curse us for the horrific debt that we have left them. 

I’m fed up with an unelected, privately-owned central bank issuing and controlling the currency of the United States.  Nobody but the U.S. government should be issuing U.S. dollars.  The reality is that the Federal Reserve is about as “federal” as Federal Express is, and the international bankers have used it for decades to transfer the wealth of the nation into their own pockets.

I’m fed up with being told that the money I have worked so hard to earn needs to be “redistributed” to people who wouldn’t know a hard day of work if it came up and bit them on the rear.

I’m fed up with Tea Party activists who believe in the Constitution and who desperately want to see a return to the ideals that the American republic was founded upon being labeled as “extremists” by the media while those who are pushing a socialism and globalism on America are referred to as “centrist” and “mainstream”.

I’m fed up with anyone who suggests that it is a good idea for the government to get to look at an image of our naked bodies before we are allowed to get on an airplane.

I’m fed up with hearing that there are banks that are “too big to fail” and that it is necessary for tax money taken from me to be used to bail them out.

I’m fed up with a financial system that is so rigged that four of the biggest U.S. banks (Goldman Sachs, JPMorgan Chase, Bank of America and Citigroup) can have a “perfect quarter” with zero days of trading losses during the first quarter of 2010.

I’m fed up with a financial system where the Dow can plunge nearly 1000 points in a single hour and nobody can seem to be able to figure out what happened.

I’m fed up with being told that I need to reduce my “carbon footprint” when carbon dioxide does not cause global warming and over 95% of total carbon dioxide emissions would occur even if humans were not present on Earth.

I’m fed up with people telling me that we should be glad to pay all the new taxes in the “health care reform” law because socialized medicine is such a good idea.   

I’m fed up with the open manipulation of the gold and silver markets right under the noses of the federal government.

I’m fed up with politicians that spend money in order to get votes without any concern for the financial future of this nation whatsoever.

I’m fed up with a government that can protect the South Korean border so well that not a single person gets through illegally for decades, and yet has done such a bad job of protecting our own border that Phoenix, Arizona has become the car theft capital of the world.

I’m fed up with a government that is so embarrassed by the recent anti-illegal immigration law passed in Arizona that they apologize to the communist Chinese for it.

I’m fed up with yuppies who went out and bought McMansions that they could not possibly afford whining and crying now that they are losing their houses.

I’m fed up with politicians shipping our manufacturing base to the third world and then pretending that it is our fault when we can’t get jobs.

I’m fed up with people telling me how wonderful “free trade” and “the global economy” are while our once great manufacturing cities such as Detroit turn into rusted-out war zones.

I’m fed up with international organizations such as the IMF and the WHO telling us that they want the American people to start paying global taxes.

I’m fed up with politicians being treated like celebrities and rock stars when they are actually leading American right into the toilet.

I’m fed up with a president and a Congress that are rapidly dismantling the strategic nuclear arsenal that has helped keep America safe for decades.

I’m fed up with politicians who run over to China and beg them to keep buying even more of our debt.

I’m fed up with the United Nations and members of the U.S. government claiming that there are far too many people in the world and that we need to promote population control measures all over the globe.

I’m fed up with a Supreme Court that has absolutely no respect at all for the personal property rights of ordinary Americans.

I’m fed up with a government that insists that freakishly-altered genetically modified crops are good for us, and that allows companies like Monsanto to ruthlessly push these “Frankenfoods” on to dinner tables all across the United States.

I’m fed up with a public that is far more interested in the death of Michael Jackson and in what is going on with Jon & Kate than in the absolutely crucial economic and political issues that directly affect them and their families. 

I’m fed up with a government that is so incompetent when it comes to foreign policy that Russia and China are literally running circles around them.

I’m fed up with a government that allows nearly a million innocent babies to be killed year in and year out.

I’m fed up with watching Wall Street bankers rake in record-setting bonuses while nearly 40 million Americans are on food stamps.

I’m fed up with a national debt that is impossible to pay off, a dollar that has lost over 95 percent of its value since the Federal Reserve was created and a financial system that is designed to fail.

If you don’t understand why the U.S. economic system is doomed, you should check out the video posted below.  The inevitable collapse of the U.S. financial system is beautifully illustrated in this brand new documentary entitled “Meltup”.  It is one of the best videos on the economic crisis that America is facing that has ever been posted on YouTube.  This video is likely to make you very mad, but after watching it you will have a much greater understanding of the economic nightmare that the United States is now facing….

So are you fed up too? Please feel free to leave a comment telling us what you are upset about….

The Unbelievably Rampant Corruption On Wall Street

In order for a financial system to be able to function properly, it is absolutely essential that the general population has faith in it.  After all, who is going to want to invest in the stock market or entrust their money to big financial institutions if there is not at least the perception of honesty and fairness in the financial marketplace?  For decades, the American people did have faith in Wall Street.  But now that faith is being shattered by a string of recent revelations.  It seems as though the rampant corruption on Wall Street is seeping up almost everywhere now.  In fact, some of the things that have come out recently have been absolutely jaw-dropping.  The truth is that the corruption on Wall Street is much deeper and much more systemic than most of us ever dared to imagine.  As the general public digests these recent scandals, it is going to result in a tremendous loss of faith in the U.S. financial system.  Once faith in a financial system is lost, it can take years or even decades to get back.  So how is the U.S. financial system supposed to work properly when large numbers of people simply do not believe in it anymore?

Just consider some of the recent revelations of Wall Street corruption that have come out recently….

*Bloomberg is reporting that a massive network of big banks and financial institutions have been involved in blatant bid-rigging fraud that cost taxpayers across the U.S. billions of dollars.  The U.S. Justice Department is charging that financial advisers to municipalities colluded with Bank of America, Citigroup, JPMorgan Chase, Lehman Brothers, Wachovia and 11 other banks in a conspiracy to rig bids on municipal financial instruments.  Apparently what was going on was that it was decided in advance who would win the auctions of guaranteed investment contracts, which public entities purchase with the proceeds from municipal bond sales, and then other intentionally losing bids were submitted in order to make the process look competitive.  The U.S. Justice Department claims that this fraud has been industry-wide and has been going on for years.  In fact, at least four financial professionals have already pleaded guilty in this case.

*An industry insider has come forward with “smoking gun” evidence that some of the biggest banks have been openly and blatantly manipulating the price of gold and silver.  For a time it looked like the federal government was just going to ignore all of this fraud, but after substantial public uproar some action is indeed being taken.  In fact, it has been reported that federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals markets.

*Goldman Sachs is getting most of the press about fraud in the mortgage-backed securities market these days.  Of course Goldman is strenuously denying that it “bet against its clients” when it changed its position in the housing market in 2007.  But we all know the truth at this point.  The truth is that Goldman Sachs clearly bet against its clients and was involved in a whole lot of things that were even worse than that.  Many did not think the U.S. government would dare go after Goldman, but that is what we are starting to see.  U.S. federal prosecutors have opened a criminal investigation into whether Goldman Sachs or its employees committed securities fraud in connection with its trading of mortgage-backed securities, and it will be very interesting to see if anything comes of that investigation.

*But not everyone is being held accountable for their actions.  The guy who helped bring down AIG is going to get off scott-free and is going to be able to keep the millions in profits that he made in the process.

*Entire U.S. cities have been victims of this rampant Wall Street fraud.  In fact, it is now being alleged that the biggest banks on Wall Street are ripping off some of the largest American cities with the same kind of predatory deals that brought down the financial system in Greece.

*The really sad thing is that fraud is very, very lucrative.  Executives at many of the big banks that received large amounts of money during the Wall Street bailouts are being lavished with record bonuses as millions of other average Americans continue to suffer economically.  Even the CEOs of bailed-out regional banks are getting big raises.  It must be really nice to be them.

So does all of this make you more likely or less likely to invest in the stock market?

Do you think that the American people can see all of this and still believe that the financial system is “fair” and “honest”?

The truth is that Wall Street is full of rip-off artists and fraudsters who don’t even try to hide their greed anymore.

It is as if a thousand junior Gordon Gekkos have been unleashed and they are all trying to be masters of the universe at any cost.

But what they are doing is ripping the heart out of the U.S. financial system.

If people lose faith in the system the system will ultimately fail.

A financial system that allows open fraud and manipulation is operating on borrowed time.

So will the rampant corruption on Wall Street now be cleaned up?

Only time will tell.

But one thing is for certain.

The American people will be watching.

SILVER MART

 

11 Signs That The U.S. Government Has Become An Overgrown Monstrosity That Almost Every American Is Dependent Upon For Economic Survival

Today, the number of Americans who are able to financially survive without any reliance on the U.S. government whatsoever is declining at a staggering rate.  Whether it is through direct handouts, entitlement programs, student loans, government bailouts, government contracts or direct employment, the truth is that now a solid majority of the American people are at least partially dependent on the federal government for their economic survival.  The sad thing is that the majority of the American people say that there is too much government in their lives when opinion polls are taken, but if you try to take the government check that they are getting away from them those same people will scream bloody murder.  But the truth is that it is getting to be really, really hard to be completely independent of the U.S. government economically.  That is because the U.S. government has their hands in almost everything.  The ideal of a “limited federal government” has long since faded away.  Very few people seem to believe in it anymore.  Instead, Americans today look to the federal government as the answer to all of our problems, as the provider of all of our needs, and as the regulator of every single detail of our lives. 

The U.S. government has become the “Big Mother” that we all scramble to for a handout when we get into trouble.

When you sit down and really analyze it, you quickly realize that there is no way that the U.S. government can be extricated from the U.S. economy now.  Instead of the free enterprise system that we once had in this country, today we have a situation where the U.S. government has become the very core of the economy.  It is the hub around which everything else in the economy revolves.

You don’t believe this?

The following are 11 signs that the U.S. government has become an overgrown monstrosity that almost every American is dependent upon for economic survival…. 

#1) The Explosion Of Government Handouts

39.68 million Americans are now on food stamps.  Millions of others are completely dependent on the extended unemployment benefits that they are receiving.  Millions of other Americans are able to survive financially because of the dozens of other welfare programs that the U.S. government subsidizes.  More Americans are receiving some form of welfare than ever before in history, and each month the numbers continue to go up.  Could there come a day when we all receive government handouts every month?

#2) The Entitlements Programs That Threaten To Destroy U.S. Government Finances

Entitlements are the single biggest U.S. government expense.  These programs include Social Security, Medicare, Medicaid and other social Ponzi schemes.  Tens of millions of Americans receive government assistance through these programs.  In fact, nearly 51 million Americans received $672 billion in Social Security benefits in 2009.  We all have friends or family members who receive these kinds of payments.  But cutting so many people a check year after year is slowly but surely destroying U.S. government finances.  According to an official U.S. government report, rapidly growing interest costs on the national debt together with spending on major entitlement programs will absorb approximately 92 cents of every dollar of federal revenue by the year 2019.  That is before a penny is spent on anything else.  This is clearly not a sustainable financial situation by any definition, but who wants to tell tens of millions of Americans that their checks are going to be reduced?

#3) The U.S. Government Is Now Even Paying Mortgages

Yes, you read that right.  As part of the “stimulus” package, the U.S. government is going to send money to some of the states that were hit the hardest by the real estate crisis.  So what is that money going to be used for?  Well, Florida, Michigan, California and Arizona have all announced that they plan to use $1.4 billion the Obama administration is sending their way to help the unemployed and the “underwater” pay their mortgages.

#4) Without The Student Loan Program A Huge Percentage Of College Students Would Not Get An Education

The federal student loan program (which was recently entirely nationalized) helps millions of college students pay for their education.  Without this assistance by the government, a lot less students would be going to college.  In fact, many of you that are reading this article directly benefited from the federal student loan program.

#5) The Bailout Of AIG

One of the biggest insurance companies in the world, AIG, would not be in existence today if not for direct federal government intervention.  It kind of makes you wonder what George Washington and Thomas Jefferson would think about a federal government that hands big bags of cash to a giant insurance company so that it can survive.  Whether it was so they could pay off their debts to Goldman Sachs or whether it was so that they could keep paying out record-setting bonuses, the truth is that AIG would not have made it without the federal government stepping in.

#6) The “Too Big To Fail” Banks

But it wasn’t just AIG that got bailed out.  A number of big banks may have gone under if not for the U.S. government.  The U.S. government decided that they were “too big to fail”.  Well, what about all the small banks that are going under?  The truth is that they are “too small to bother with”.  We now live in a nation where the U.S. government is the one who decides which banks live and which banks die like dogs.  Doesn’t that just make you feel all warm and fuzzy?

#7) The Bailout Of General Motors

But not only does the federal government bail out financial institutions – it is also now in the car business.  Yes, grand old General Motors may have ended up on the scrap heap of history if not for the U.S. government stepping in.  So if you work for General Motors or if you work for any company that does business with General Motors, you can thank Uncle Sam for the fact that you still have a job.

#8) The Bailouts Of Fannie Mae and Freddie Mac

If the U.S. government had not bailed out Fannie Mae and Freddie Mac, we may not have much of a mortgage industry at this point at all.  According to Inside Mortgage Finance, government-related entities backed 96.5% of all home loans during the first quarter of 2010, which was up from 90% in 2009.  So if you borrowed money to buy a home over the past couple of years, there is a very strong likelihood that the U.S. government was involved.

#9) The U.S. Government – The Nation’s Biggest Employer

According to the Bureau of Labor Statistics, approximately 2 million civilians work for the federal government, excluding the Postal Service.  When you add in all U.S. military personnel, that number goes much higher. 

The truth is that as the government continues to expand (become more bloated), more Americans than ever are hopping aboard the gravy train.  Today, the average federal worker now earns about twice as much as the average worker in the private sector.  So if you want to do little work, produce little of real value and enjoy super cushy benefits, maybe you should apply for a job with the federal government too.

#10) Millions Of Americans Are Employed By Firms That Rely On Government Contracts

When considering the impact of the U.S. government on the economy, you can’t forget the hundreds of companies that would go out of business if their U.S. government contracts were taken away.  There are literally millions of people who work for companies that do business with the government.  If the government disappeared it would cause economic chaos for those firms.  The truth is that a whole lot of people make a really good living plugging into the sweetest revenue source of them all – the U.S. government.

#11) The U.S. Government Takeover Of The Health Care System

The U.S. government takeover of the health care system is going to fundamentally change the economics of the health care industry.  The U.S. government will now play a major role in deciding which hospitals get built and which do not.  Approximately 17% of U.S. GDP is spent on health care, and now the U.S. government has unprecedented control over where that money goes.  Over a dozen new taxes have been established by the new health care reform law, and the U.S. government is going to pour an unprecedented amount of money into the system.  So will this result in all of us getting better health care?  We’ll just have to wait and see.

The truth is that the Founding Fathers never envisioned a federal government that completely dominated that national economy.  But that is what we have got.  As of now, only a very small percentage of Americans are still able to say that they are completely financially independent of the U.S. government. 

You see, in economic terms the U.S. government is not just the elephant in the room.  It is the elephant that sat on the room and nearly suffocated everything else out of existence.

As Americans, we live in an economy that is so intertwined with the government that it is impossible to separate the two anymore.

But the really bad news is that the U.S. government is in massive financial trouble.  According to one new report, the U.S. national debt will reach 100 percent of GDP by the year 2015.  Many economists regard that as an incredibly dangerous threshold to cross.

If U.S. government finances collapse, it will mean the collapse of the entire U.S. economy as well.  There is simply no separating the two.  And considering the fact that the U.S. government has piled up the biggest mountain of debt in the history of the world, things don’t look promising.

America is headed for an unprecedented economic collapse, and the U.S. government is leading the way.  If you can get financially independent, now is the time to try to do that, but the reality is that we will all feel massive economic pain when this thing comes crashing down.

The Declining Value Of Work

One of the great joys that men in free societies have long enjoyed is the ability to earn an honest wage for an honest day of work.  In particular, the amazing capitalist engine that powered the U.S. economy for decade after decade greatly rewarded the incredible hard work and industriousness of the American people.  America was known as the land of opportunity, and we built the largest middle class in the history of the world by working incredibly hard.  But today, all of that is fundamentally changing.  Thanks to rapid advances in technology, and thanks to the globalization of the work force, the labor of American workers is rapidly losing value.  Automation, robotics and computers have made many jobs obsolete.  Today one man can do the work that a hundred men used to do.  Not only that, but today American workers literally have to compete against workers from all over the globe.  Global corporations often find themselves having to choose whether to build a factory in the United States or in the third world.  But in the third world workers often earn less than 10% of what American workers earn, corporations are often not required to provide any benefits to workers, and there are usually hardly any oppressive government regulations.  How can American workers compete against that?

The truth is that labor is now a global commodity.  How can an American worker compete against a desperate, half-starving worker in the third world that will work like mad for a dollar an hour?

But this is what we get for letting the politicians push “free trade” down our throats.

Most American workers had no idea that free trade would mean that they would suddenly be competing for jobs against workers in the Philippines and Malaysia.

But that is the cold, hard reality of globalism.

All of this free trade has been very hard on American workers as factory after factory has closed, but it has allowed the big corporations to get exceedingly wealthy.

The top executives at the big global corporations are certainly enjoying all of this free trade.  Their salaries have soared.

In 1950, the ratio of the average executive’s paycheck to the average worker’s paycheck was about 30 to 1.  Since the year 2000, that ratio has ranged between 300 to 500 to one.

The rich are getting richer and the poor are getting poorer.

That is what globalism is all about.

The elite make out like bandits as they exploit third world labor pools, while the American middle class finds itself slowly being crushed out of existence.

According to the United Nations Gini Coefficient (which measures distribution of income), the United States has the highest level of inequality of all of the highly industrialized nations.

Increasingly, all of the rewards are going to those at the top, while the vast majority of Americans are left wondering why things just don’t seem to work out for them.

According to economists Thomas Piketty and Emmanuel Saez, two-thirds of income increases between 2002 and 2007 went to the wealthiest 1% of Americans.

Life is good if you are in the top one percent.

Unfortunately, that does not include any of us.

Instead, the American middle class is gradually being pushed into lower paying service jobs.  But it is really hard to feed a family by cutting hair or by greeting the folks who come walking into the local Wal-Mart.

If you talk to many Americans, they just can’t seem to figure out why they can’t make things work out even though they are working as hard as they can.  Millions of Americans have found themselves taking on second (and in many cases third) jobs in an attempt to provide for their families.

But what they don’t understand is that the global elite have turned labor into a globalized commodity.

American workers are not faced with a level playing field.  Just check out some of the pay levels around the world that American workers must compete against….

In Bangladesh, a garment worker makes 22 cents an hour. The wage in Cambodia is 33 cents an hour; in Pakistan, 37 cents an hour; in Vietnam, 38 cents; in Sri Lanka, 43 cents; Indonesia, 44 cents; India, 55 cents; China, 86 cents; the Philippines, $1.07; and Malaysia, $1.18.

Do any of you want to work for $1.18 an hour with no benefits?

But that is your competition.

Wages are being driven down and big global corporations are loving it.

This isn’t capitalism.

This is the global elite pushing us into a cruel system of economic slavery where they control all of the wealth and the rest of us struggle to survive as we work our tails off for them.

Already we are seeing large numbers of Americans becoming absolutely desperate to get even a low paying job.

For example, over one three day period, approximately 10,000 people showed up to apply for 90 jobs making washing machines in Kentucky for $27,000 a year.

Can your family live on $27,000 a year?

But that is considered a good wage now.

Actually, the folks who are making really good wages now are those who work for the U.S. government.

Yes, life is good if you are a servant of the system.

Today, the average federal worker now earns about twice as much as the average worker in the private sector.

Of course government employees basically produce next to nothing except red tape.

The U.S. government doesn’t seem to care if they are productive or not.  They just keep borrowing more money and getting us into even more financial trouble.

But at least there is somewhere for middle class families to get decent jobs.

In fact, it is getting really hard to live a middle class lifestyle in America without relying on the government in some way.

The truth is that good jobs are becoming increasingly scarce.

That is why it is absolutely imperative for all of us to try to become as independent as possible.

That means getting out of debt.

That means starting our own businesses.

That means learning how to grow a garden.

Many of those who continue to blindly rely on the system to provide them with a “job” (“just over broke”) will end up bitterly disappointed in the end.

Millions of Americans have already lost their jobs and millions more Americans will lose their jobs as we move along through the next few years.

In fact, with all of the amazing advances in technology that we have seen over the past couple of decades, the global elite are starting to realize that they really don’t need 6 billion workers after all.

Instead, those among the global elite are increasingly viewing all of us as a burden.  They openly ask why they should have to take care of so many “useless eaters”.  After all, if the system does not need all of us to keep functioning, then what good are we to them?

So these days you are starting to hear a lot about the dangers of “overpopulation” and the need to control population growth.

In fact, just over one year ago Bill Gates, David Rockefeller, Warren Buffett, George Soros, Michael Bloomberg, Ted Turner, Oprah Winfrey and other very wealthy power brokers held a clandestine meeting in New York.

So what was the topic?

Population control.

One anonymous attendee of the meeting was quoted in a U.K. newspaper as saying that overpopulation “is something so nightmarish that everyone in this group agreed it needs big-brain answers.”

Are you starting to get the idea?

Instead of being viewed as valuable workers, now we are being viewed by the elite as pests that have multiplied to the point where we are now out of control.

What a strange world we live in now.

We need to get back to the America where good workers are valued and where hard work is rewarded.

We need to get back to the America where having a large middle class is an important national goal.

We need to get back to the America where we build American businesses, where we hire American workers and where we buy American products.

But unless the American people wake up, American workers are going to continue to be devalued.

Are we actually going to sit back and let American living standards decline to third world standards?

It is up to this generation to reject globalism and to reclaim the great free enterprise principles that this nation was founded on.

If someday our children and grandchildren exist in a world where they are considered just another part of the third world labor pool they will know who to blame.

Get Ready To Taste The Bitter Side Of Keynesian Economics

Most Americans have no idea what the term “Keynesian economics” means, but the truth is that it has been deeply influencing U.S. economic policy for decades.  Essentially, it is an economic theory that originated with a 20th century British economist named John Maynard Keynes, and it advocates government intervention in the economy in order to smooth out economic cycles.  The general idea was that lower interest rates and increased government spending could be used to increase aggregate demand when the economy was experiencing a downturn, thus increasing economic activity and reducing unemployment.

And you know what?

To a certain degree, Keynesian economic theory actually does work.

Increased government spending DOES stimulate the economy.

But the problem is that governments all over the world decided that they would just run constant budget deficits and stimulate the economy all the time.

All of this debt has brought a temporary prosperity to many of the nations around the globe, but there is one huge problem with debt.

It has to be paid back eventually.

With interest.

So what happens when nations have to start spending huge chunks of their national budgets just to service all the debt that they have piled up?

Well, that is when they taste the bitter side of Keynesian economics.

In fact, we see that starting to happen all over the world right now.

All of a sudden, governments all over the globe are talking about huge budget cuts, pay decreases, and higher taxes.

We all know about what is going on in Greece right now, but suddenly it seems like “austerity measures” are being implemented all over the place.  Just consider the following examples….

*Portugal has pledged to impose fresh austerity measures that include much higher taxes and dramatic budget cuts.

*Barack Obama is personally pressuring Spain to make severe austerity cuts.

*It’s not just Southern Europe that is facing these austerity measures either.  It is being reported that Germans are bracing themselves for a “bitter” round of budget cuts.

*The exploding debt situation in the U.K.was a major issue in the most recent election.  Bank of England governor Mervyn King has even gone so far as to warn that public anger over the “austerity measures” that soon must be implemented in the U.K. will be so painful that whichever party is seen as responsible will be out of power for a generation.

*Federal Reserve Chairman Ben Bernanke says that United States citizens will soon have to make difficult choices between higher taxes and reduced government spending.

*California Governor Arnold Schwarzenegger is reportedly planning to seek “terrible cuts” to eliminate an $18.6 billion budget deficit facing the most-populous U.S. state through June 2011.

*In fact, many U.S. states are getting ready for their biggest budget cuts in decades.

Austerity measures for everyone?

That is the way it is shaping up.

So what happens when austerity measures are implemented?

Well, just as Keynesian economics correctly predicts that economic growth goes up when government spending increases, it also correctly tells us that economic growth goes down when government spending decreases.

So all of these austerity measures are going to mean economic pain for a whole lot of people.

Not only that, but there are now whispers that this European debt crisis could potentially cause the break up of the euro.

Whether or not that is actually the case, officials in Europe are sure seizing on this crisis to advocate for increased centralization of power in the EU.

For example, senior administrators of the European Union are proposing that they be given unprecedented power to scrutinize the spending plans of member countries before national parliaments can vote on those budgets.

Talk about a loss of sovereignty.

But not only that, the Governor of the Bank of England, Mervyn King, has come right out and said that he believes that the European Union must become a federalized fiscal union if it is to survive.

Doesn’t it seem like whenever there is a crisis the solution that is always being proposed is to give centralized institutions even more power?

There has also been talk that nations such as Greece could end up being ejected from the euro, but the reality is that such a scenario is not very likely.

For one thing, the ECB has already come out and said that under current EU law, ejection of a nation from the monetary union is “legally next to impossible”.

In addition, leaders throughout Europe realize that if the euro fails then the entire EU may fail as well.  German Chancellor Angela Merkel made this very clear when she recently warned that if the euro collapses, “then Europe and the idea of European union will fail.”

For many in Europe that would seem like a disaster, but the truth is that it would be a wonderful, wonderful thing if the euro failed.

Why?

Because it would represent a major defeat for those who are seeking to drag us towards a “world currency” and a “global government”.

It would also be a huge victory for those who still believe in national sovereignty and the decentralization of economic power.

So let us hope that the euro breaks up.

But don’t count on it.

Meanwhile, the one thing that we can count on is all of the economic pain that all of these new austerity measures are going to bring.

Will The U.K. Be The Next European Nation To Experience A Massive Debt Crisis?

Now that the Greek debt crisis has been “fixed” by a gigantic pile of more debt, many are wondering which European nation will be next to experience a massive debt crisis.  Increasingly, all eyes are turning to the U.K. and their public debt that is spiralling out of control.  The U.K. government’s deficit is projected to be approximately 13 percent of GDP in 2010, which is even worse than Greece’s 12.5 percent figure.  Right now the public debt of the U.K. is “only” at 68 percent of GDP, but three years ago it was sitting at about 40 percent, so as you can see the national debt of the U.K. is absolutely exploding in size.  In fact, it is now being projected that the public debt of the U.K. will exceed 100 percent of GDP within the next three years.  Considering the fact that citizens of the U.K. are some of the most highly taxed people in the world already, there just is not much room for raising more revenue.

So obviously there is a problem.

A massive, unchecked, out of control problem that threatens to blow out the entire U.K. economy.

And considering the fact that it took just about everything that Europe could muster to bail out poor little Greece, how in the world is Europe going to be able to bail out the U.K. when their debt crisis violently erupts?

If Greece almost brought down the euro and the financial system of Europe, then what would a financial implosion in the U.K. do?

Considering the fact that the Greek economy is approximately 16% the size of the U.K. economy, it is very sobering to think what a “Greek style” debt crisis in the U.K. would mean for the entire world.

But if something is not done rapidly it will happen.

Just consider the following charts….

Now how in the world do you go from a deficit that is between 2 and 3 percent of GDP in 2007 to one that is above 11 percent in 2009?  That takes some serious financial mismanagement.  Not only that, but as we mentioned earlier, this year the deficit is projected to be approximately 13 percent of GDP.  That is a level that is catastrophic.

Kornelius Purps, the fixed income director of Europe’s second largest bank is very open about the fact that he believes that the U.K. is likely the next European nation that will face a very serious debt crisis….

“Britain’s AAA-rating is highly at risk. The budget deficit is huge at 13% of GDP and investors are not happy. The outgoing government is inactive due to the election. There will have to be absolute cuts in public salaries or pay, but nobody is talking about that.”

In fact, Morgan Stanley has already warned that there is a very strong probability that some of the rating agencies may remove the U.K.’s AAA status before 2010 is over.

If that happened, it would make the crisis that we just saw in Greece look like a Sunday picnic.

So what must be done?

Well, already world financial authorities are calling for “austerity measures” and deep budget cuts to be implemented in the U.K., but the reality is that those moves will cause deep economic pain.

In fact, Bank of England governor Mervyn King recently warned that public anger over the “austerity measures” that soon must be implemented in the U.K. will be so painful that whichever party is seen as responsible will be out of power for a generation.

The cold, hard reality is that the U.K. is in for economic pain in any event.  Either they cut the budget and implement severe “austerity measures” which will hit people really hard economically, or they continue on the current course and risk a much worse version of what just happened in Greece.

Not that the rest of the world should be gloating about what is going on in the U.K. either.

The financial situation in Japan is even worse than what the U.K. is dealing with, and the United States is going to have the biggest economic downfall of them all one of these days.

As we wrote about yesterday, the sad truth is that the governments of the world are rapidly running out of money and are drowning in debt.  It is a gigantic mess, and the term “sovereign debt crisis” is going to pop up in the news very regularly from now on.

You see, it is not just the financial systems of the U.S. and the U.K. that are broken.  The entire world financial system is fundamentally flawed and is doomed to failure.

Right now the central banks of the world can do their best to try to hold things together with a tsunami of debt and paper money, but they are not going to be able to keep up this balancing act forever.

When it does all start coming apart and the dominoes do start falling, it is going to be a complete and total nightmare.  Paper currencies around the globe will lose value at breathtaking speeds as central banks flood economies with cash in an attempt to stop the madness.

But more debt and more paper never solves anything.  All it does is make the long-term problems even worse.

When the tipping point comes, things are going to move fast.  Let’s just hope that we all have a good bit more time to prepare before that happens.

The Juice Lady

“The World Has No Money, And The Emperor Has No Clothes”

Most of us are aware of the very old fairly tale by Hans Christian Andersen in which two weavers promise an emperor the finest suit of clothes imaginable, but from a fabric invisible to anyone who is unfit for his position or “just hopelessly stupid”.  Well, in the fairy tale it turns out that nobody wants to admit that they are “unfit” or “stupid”, so when the emperor parades before his subjects in his imaginary new suit of clothes, it takes a child to cry out: “But he isn’t wearing anything at all!”  Well, many of us have been declaring that the world economy “has no clothes” for some time now, but when the anchor of NBC News declares it on national television it gets a bit more attention.  During his recent appearance on The Late Show with David Letterman, NBC’s Brian Williams was asked about the world financial situation.  His answer included this shocking statement: “The world has no money, and the Emperor has no clothes.”

During the interview, it was readily apparent that Williams was honestly shaken up by what had happened last Thursday in the stock market.  But who can blame him?  After all, most of us who watch the markets were totally stunned when the stock market dropped almost 1000 points exactly in less than an hour.

Normally a network news anchor is much more guarded and is much more careful about what is revealed to the public.  But on Letterman’s show, Williams gave us a glimpse of what he really thinks about the world economic situation….

“If I wasn’t a tad too close to this, I’d probably not leave the house.  But that’s how bad it is.”

A video clip that includes these jaw dropping comments by Williams is posted below….

So why did the U.S. stock market plunge so rapidly last Thursday?

Well, many have blamed the episode on a “bad trade” or a “computer glitch”.  Others claim that the Greek debt crisis caused a brief panic.  There are yet others who see something more insidious going on – such as Goldman Sachs seeking to remove their name from the financial headlines, or the Federal Reserve sending a message that S. 604 (the bill to audit the Federal Reserve) should not be passed.

The truth is that we will probably never know what actually caused the market to fall through the floor that afternoon.

But it did pave the way for more bailouts.

Over the weekend, European policy makers unveiled an unprecedented loan package worth almost $1 trillion and a program of bond purchases designed to stop the sovereign debt crisis that threatened to shatter confidence in the euro.

The Federal Reserve got into the act as well.  Over the weekend the Fed promised to flood the international financial system with U.S. dollars.  This was seen in the markets as a sign of “resolve” meant to keep doubt about the European economy from turning into a global crisis of confidence.

So on Monday, investors responded to these bailouts with exuberance.  The Dow Jones industrial average gained 405 points that day, which was the average’s biggest one day point gain since March 23rd, 2009.

But are more bailouts, more debt and a flood of paper money really something to celebrate?

No.

The truth is that debt and paper money that continually declines in value are some of the chief causes of the financial mess that the world is now in.

In fact, Congressman Ron Paul is warning that the European bailout that was just announced will just lead to even larger financial problems in the future….

And Ron Paul is right – all of these bailouts and all of this debt will eventually cause all of the major paper currencies (including the U.S. dollar) to collapse.

The funny thing about these bailouts is that they never seem to help the average people on the street.  Just take a look at the U.S. economy.  We are told that Wall Street has recovered and that things are getting back to normal, and yet more Americans than ever find themselves dependent on the U.S. government for their survival.

The U.S. Department of Agriculture recently announced that 39.68 million people, or 1 out of every 8 Americans, were enrolled in the food stamp program during February, an increase of 260,000 from the previous month.

Nearly 40 million Americans on food stamps?

How in the world did that happen?

Once upon a time, the old timers would tell us that one day things would get so bad that we would all have to stand in bread lines.

Well, today food stamps are the new bread lines.

If you have to rely on the government for the very bread that you eat, what kind of a position does that put you in?

The truth is that the once great American middle class is allowing the system to slowly keep grinding them into oblivion.

Like never before in our lifetimes, wealth is being concentrated in the hands of the “lucky one percent”, while the rest of us are rapidly being marginalized.

Do you ever stop to wonder why it seems like almost everyone is either broke or up to their eyeballs in debt?

That even goes for the major governments of the world.  The U.S. government (the “wealthiest” nation on the globe) has piled up the biggest mountain of debt in world history.

You see, Brian Williams was actually chillingly accurate when he declared that “the world has no money”.

So if the world doesn’t have any money, then who does have it?

The international bankers.

But, shhhhh, don’t tell anybody.

Just keep quietly clapping as the emperor walks down the street with no clothes on.