Monthly Archives: March 2015

Even the BIS throws the FED under the bus.

No FED Bets From the BIS

by:  Jeffery Lewis,   March 31, 2015

It is becoming harder and harder to ignore the fact that central banking policy isn’t exactly working out for the real economy. More wealth has been funneled toward an increasingly small and concentrated pool of unproductive paper wealth.

But low and behold, it looks like the political-monetary landscape is being groomed in preparation for the next leg of this ongoing train wreck. Now the Bank for International Settlement (BIS), the central bank bank of central banks, is throwing the Fed under the bus.

This is from the central bank of central banks:

Here’s an excerpt The BIS Quarterly Review for March 2015:

https://www.bis.org/publ/qtrpdf/r_qt1503.htm

As discussed in detail elsewhere, there is a case that policy should first and foremost constrain the build-up of financial booms – especially in the form of strong joint credit and property price increases – as these are the main cause of the subsequent bust.

They are telling us this now?

And once the financial bust occurs, after the financial system is stabilized, the priority should be to address the nexus of debt and poor asset quality head-on, rather than relying on overly aggressive and prolonged macroeconomic accommodation through traditional policies.

That certainly sounds a bit critical.

This would pave the way for a sustainable recovery.

I thought recovery was behind us. Or is this a premonition?

The idea would have to be macroeconomic policies that are more symmetrical across financial booms and busts so as to avoid a persistent bias that could, over time, entrench instability and chronic economic weakness as well as exhaust the policy room for maneuver.

What they mean by asymmetry and persistent bias is the massive concentration of wealth (the bias) tied to an impossibly small pool of real assets, from real estate to commodities, to productive enterprise and precious metals – the asymmetry is inherent in these Ponzis.

Here is one very interesting footprint beginning to form as the smoke clears and the Fed reverses its position.

Via ZeroHedge:

21 countries that have cut interest rates in just the first 2 months of 2015:

For those asking, here is the full, updated list of 20 central banks easing so far in 2015 courtesy of Reuters:

For Source and list click here:

http://www.24hgold.com/english/news-gold-silver-no-fed-bets-from-the-bis.aspx?article=6637247694H11690&redirect=false&contributor=Jeffrey+Lewis

It’s Official: The Pentagon Finally Admitted That Israel Has Nuclear Weapons, Too

William Greider on March 20, 2015 – 10:56 AM ET

Hon. Paul T. Hellyer: Full Disclosure

Dear Andy,  

The Hon. Paul T Hellyer speaks

his important, heartfelt message

to the world; “We have been given

a few months, not years…We are

the ones destined to write our

own history.”

The former Defense Minister of

Canada talks about urgent issues

we face today, and how we can

act on them as individuals, with

a common goal of freedom and

truth. 

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Daily Videos from the Edges of Science

Bibi to Congress – “You work for me and don’t you forget it !”

Poster

Posted by Preston James, Ph.D on March 21, 2015

Bibi Netanyahu came to America to remind Members of Congress that they work for him and Israel, and better torpedo President Obama’s upcoming treaty with Iran or else they will never be re-elected.

In a shocking development Bibi Netanyahu invited himself to speak in front of the US Congress to remind them they work for him, and to give them their marching orders for US foreign policy with Iran for 2015.

Here is how this very strange event which was a complete breech of protocol and a violation of American law unfolded.

In a dramatic overplay seemingly taken right out of a batman comic book Bibi Netanyahu called up John Boehner and invited himself to speak before Congress. Here is what his phone call likely consisted of.

[Note:  Do not assume the source used remote viewing, although that is a possibility.]

Netanyahu: John, this is Bibi. How are you?

Boehner: Very well. Thank you Sir for asking.

Netanyahu: Are you enjoying being in the Catbird Seat in the House John?

Boehner: Yes Sir Bibi.

Netanyahu: How do you like all the Perks and the set-aside allocations John?

Boehner: Oh, I really appreciate all that Bibi, I just can’t thank you enough.

Netanyahu: Now John, you know when you needed my help I always came through for you, didn’t I?

Boehner: Yes Sir, you have always taken good take of me.

Netanyahu: Now John, I need you to do something for me.

Boehner: Anything you want Bibi.

Netanyahu: John, as you know, I have reached a stalemate with your President and he has turned his back on Israel and on me. And as you know, I was the one that allowed him to be elected in the first place.

Boehner: Yes Sir that’s correct Bibi. The man has no respect. What do you want me to do for you?

Netanyahu: John, since your backstabbing President won’t invite me to speak to your Congress as has been tradition, I am going to need you to send me a personal invite on behalf of Congress and the United States of America. Can you do that for me John?

Boehner: Yes Sir, Bibi, I can do that for you. Consider it done.

These members of Congress who attended Netanyahu’s speech broke Federal Law and violated their Oaths of Office.

The rest is history and Bibi Netanyahu came and spoke to Members of Congress. In coming to hear Netanyahu these Members of Congress violated their Oaths of Office and also violated the Logan Act, a felony.

In order for you to understand the Evil beyond imagination that lies in Bibi Netanyahu’s heart, here is a transcript of a recording taken from a bug underneath the table that Bibi Netanyahu and some of his cronies were sitting at in Fink’s Bar in Jerusalem in 1990.

When Bibi refers to “god” he is not referring to the same God most of us think of, he is referring to the Khazarian Mafia’s Babylonian Talmudic god Baal or Moloch, aka the great owl that demands human blood sacrifice, singly of infants and mass of whole nations populations.

Baal worship is one of the most evil faiths imaginable and for those that think Baal does not exist as an evil spirit and has no crafty powers to manipulate mankind and societies, learn from those who have left “the craft” of Baal Worship. They claim that Baal is Lucifer aka Satan and can only be defeated by goodness, integrity, strength of spirit, love towards one’s fellow man, following the Golden Rule and rejecting evil at every turn in the road.

These prior members claim that Baal appeared in person during their rituals, demanded child bloodletting and sacrifice and rewarded obedience to commands to do incredible evil to destroy all societies of the World in order to create Hell on Earth and a Satanic Kingdom that would rise from the ashes with themas the chosen ones or rulers of the World.

And this is exactly what the Khazarian Mafia (KM) has been hard at work attempting to do through their Luciferian Banking System which is based on massive counterfeiting, pernicious usury, Worldwide asset stripping of all peoples’ earned wealth, in order to create Worldwide debt-slavery.

The Netanyahu quotation below should make the blood of all Americans boil with anger and resentment toward Israeli, Netanyahu and the Khazarian Mafia (KM). 

And it should create a strong desire to drive Israeli espionage fronts out of America, boot out all Members of Congress who are Israeli-firsters, to nationalize the Federal Reserve System, and cancel all national debt “owed” illegally to them, and un-elect or remove from office all Members of Congress who just violated the Logan act and their oaths of office, by attending Netanyahu’s speech or wrote letters to Iran. These men and women are Traitors to America. Remember there is no statute of limitation on Fraud, murder, mass-murder, genocide, torture or war crimes.

If we get caught they will just replace us with persons of the same cloth. So it doesn’t matter what you do, America is a Golden Calf and we will suck it dry, chop it up, and sell it off piece by piece until there is nothing left but the World’s biggest welfare state that we will create and control. Why? Because it’s god’s will and America is big enough to take the hit so we can do it again, again and again. This is what we do to countries that we hate. We destroy them very slowly and make them suffer for refusing to be our slaves.”

Yes, this is what the secret Agenda of Bibi Netanyahu, Israel and the Khazarian Mafia (KM) is for America. It’s high time every good American that cares about their childrens’ future knows about this and start organizing politically to stop it.

Did these members of Congress who attended Netanyahu’s speech commit Treason too?

Some Constitutional experts are now arguing that they also committed Treason against America by supporting a foreign enemy because we now know that Bibi Netanyahu ordered Israeli Intel and stateside Dual Citizens and Assets to deliver a nuclear attack on America on 9-11-01 using W-54 Davy Crockett nuclear Pits stolen out of the back door of Pantex at Amarillo, Texas.

It’s high time all Americans come to the understanding that Netanyahu is the leader of a criminal state and is an enemy of America and all Americans because of the nuclear attack that he ordered on 9-11-01 as the operational head of the Khazarian Mafia (KM).

It is time for all Americans to understand there is no problem with Terrorism in the World but only the renegade criminal acts of terror committed by the World’s largest Organized Crime Syndicate, the Khazarian Mafia using Israel its main action-agent to set up and run the Gladio-style False-flag attacks.

It is also time for all Americans understand how this Rothschild Khazarian Mafia (KM) infiltrated America and established a beachhead in America in 1913 when they bought Congress and manipulated them into illegally passing the Unconstitutional Federal reserve Acts in 1913 with no legally required quorum.

The Rothschild Khazarian Mafia Banksters infiltrated and hijacked the American Monetary Production and Distribution System and formed their own private, illegal, Unconstitutional Federal Reserve Bank, a sophisticated Counterfeit money system based on pernicious usury and debt-slavery.

Over time these Rothschild Khazarian Mafia Banksters were able to completely hijack the American Monetary Production and distribution system and eventually were able to take the US Dollar off of any backing with Gold and Silver and transform it to a purely counterfeiting business with no USG controls at all placed upon it.

Once these Rothschild Khazarian Mafia Banksters transformed their operation into a pure Counterfeiting enterprise, they could prints and issue enough money to buy almost every single Member of Congress one way or another. Once they got control over Congress and made sure they put a Presidential Patsy in power, they could get the legislation they wanted which would provide huge support for their member Corporations and defense contractors.

This then would allow vast sums to be kicked-back to buy and control Congress through large campaign donations, secret payoffs and lavish perks as well a huge offshore set-aside allocations in numbered accounts.

The World’s biggest kick-back scheme ever devised, all designed to steal the hard earned earnings of the American taxpayer.

And of course a  bought and owned Congress could be easily manipulated to fund vast aid packages to Israel, some of which could be used to pay for lavish junkets during which folks naive enough to travel to Israel could be fed special “doped” Kool-aid and covertly mind-kontrolled to “love and obey Israel” forever.

It is a sad fact that because of the vast, unlimited, constantly expanding Counterfeit money supply the Israelis have been able to hijack America on behalf of the Rothschild Khazarian Mafia (KM), by far the most evil group of individuals in history.

These Khazarian Mafia folks are truly dedicated to destroying every society on earth and mass murdering 90% of the World Populace by their own admission.

Why Bibi Netanyahu came to speak before Congress.

Bibi Netanyahu came to America to speak to Congress to remind them that he is their real boss and that Israel put them in power, “owns them”, and can remove them from their elected office any time it wants by providing vast aid to any political opponent they select.

Netanyahu also came to exert influence to derail President Obama’s negotiations with Iran to make sure that their nuclear development is for peaceful purposes and America and can trade with Iran, resume normal relations and progressively remove sanctions.

Bibi Netanyahu and Israel are the World biggest liars and hypocrites.

How hypocritical it is for Bibi to constantly accuse of Iran trying to build nuclear devices when we know for sure that they have already signed the Nuclear Non-Proliferation Agreement, have no desire for nuclear warheads or bombs, and are working to develop cheap, effective nuclear power based on their own large uranium deposits.

Compare this to Israel the Apartheid criminal state which has a large nuclear stockpile of nuclear weapons but refuses to admit it or sign the Nuclear Non-Proliferation Agreement. What this means in practical terms that bit is illegal for America to give any aid from the USG or private donors to Israel. yes all such aid public and private is now illegal and the laws regarding this must be immediately enforced.

Right now the US Congress is filled with traitors and folks who violated the Logan act and numerous bribery laws with impunity. They must be impeached or unelected, fully prosecuted for these major felonies and all their personal assets earned from their crimes must be clawed back.

How tragic it is that Americans allowed Traitors to America to be elected to Congress who would sell out America to the Israelis and the Rothschild Khazarian Mafia Banksters for riches, power and status.  But this is what has happened gradually since the Rothschild Khazarian Mafia (KM) established a beachhead in America in 1913.

It is now time for all Americans to learn the truth about how America has been infiltrated and hijacked by the Rothschild Khazarian Mafia (KM) and its main action-agent Israel.

It is now time for all Americans to rise up and demand that the Federal Reserve System be “nationalized” into the US Department of the treasury and all assets sized and clawed back of all those who received vast fortunes from owning shares in his fake Counterfeiting pernicious usury operation to asset strip Americans of all accrued wealth and transform them into debt slaves.

It is also time for Americans to rise up and drive all the US Congressmen that are owned by Israel out of office. It is also time to fully prosecute all the directors and principals of Israeli espionage fronts like AIPAC, JINSA, the Defense Policy Board, The Joint, the ADL, and the like for espionage inside America.

These espionage fronts must be completely eliminated and all Israeli-America “Israeli-first” Dual Citizens involved in espionage and the nuclear attack on America on 9-11-01 and its coverup must be fully prosecuted. The whole 9-11-01 Gladio-style False-flag must be completely re-investigated and the secret Grand Jury investigation in Houston, Texas must be re-activated.

All dual citizen-ships must be eliminated asap and those allowed to stay must disavow any allegiance to a foreign power and take a loyalty oath to America.

Anyone who has been a Dual Citizen must be forever barred from holding any political office or ever working for the USG or any state or local government.

It is time to fully expose the infiltration and hijacking of America by the Rothschild Khazarian Mafia (KM) and stop it cold. Yes, this seems to be a daunting task because of the depth of their infiltration of almost every American institution, including the KM’s Controlled major Mass media (CMMM).

However, thanks to the Worldwide Internet the World’s new Gutenberg Press, the CMMM is now being surpassed by the Alternative news published and broadcast on the Internet and the whole World is catching on to the existence of the Khazarian Mafia (KM), it massive Counterfeiting Bankster System, and its main action-agent Israel and Netanyahu, the KM’s Operational Head.

Conclusion:

The truth about Israel attacking America on 9-11-01 is now spreading like wildfire around the World and diffusing throughout American populace. Once a critical mass of 12% is reached, you will be amazed at how this big 9-11-01 CMMM coverup unwinds. Soon all true Americans will want payback and will drive out the Khazarian Mafia (KM) and their crooked Counterfeit, fake Rothschild private Central  Banking System.

Payback is coming and believe you me when the Americans become fully awake, they will want big time payback, with a enraged fury that is almost unimaginable. When that day comes which is not far away, it is not too hard to imagine what the American masses will demand and will do if their demands are not met.

Bonus Video for those who have time and interest. What happens if the Rothschild KM Banksters and Israeli espionage fronts are not driven from America.

http://www.veteranstoday.com/2015/03/21/bibi-to-congress-you-work-for-me-and-dont-you-forget-it/

HuffPo: Gun Control Groups Getting Decimated by State Legislatures

Joe Raedle/Getty Images/AFP

On March 17 the Huffington Post ran a column detailing how Moms Demand Action for Gun Sense in America and other members of the gun control lobby are getting decimated by state legislatures across the country

From pending passages of open carry and campus carry to legislation that completely repeals any need for a concealed carry permit, the gun control lobby is getting rocked.

According to HuffPo, one the clearest losses for the gun control lobby is the open carry push in Texas. That fight is one which HuffPo has already written off as a done deal, and one which they presume will quickly be followed by campus carry.

Arkansas, Florida, Nevada, and 10 other states are also considering changing their concealed carry statutes so women can carry guns for self-defense on college and university campuses.

On top of this, the West Virginia legislation voted to do away with any concealed carry permit requirement, the New Hampshire Senate did the same, and Maine is working on it. Montana lawmakers are also pressing to do away with any remaining requirement for a concealed carry permit in their state, and the same repeal has been introduced in Idaho.

This all comes less than a year after Kroger, Fred Meyer, and Harris Teeter all rejected Moms Demand Action’s calls to deny law-abiding citizens their right to openly carry guns for self-defense in their stores. It comes less than six months after Moms Demand Action founder Shannon Watts tried to spin her group’s huge mid-term election losses as proof that they’d become a “political force.” It comes less than a month after their West Virginia chapter begged lawmakers in that state not to repeal concealed carry permit requirements. And all of it is compounded by their continued, unpopular opposition to arming women for self-defense on college campuses.

But according to HuffPo, Moms Demand Action plans to keep fighting. Watts said her group will be “pushing back in all 50 states,” so that the advance of gun rights “no longer goes unchecked.”

http://www.breitbart.com/big-government/2015/03/18/huffpo-gun-control-groups-getting-decimated-by-state-legislatures/?AID=7236

Follow AWR Hawkins on Twitter @AWRHawkins. Reach him directly at awrhawkins@breitbart.com.

Lagarde says IMF to co-operate with China-led AIIB bank

Christine Lagarde in China

Mrs Lagarde has been attending an economics forum in China

International Monetary Fund chief Christine Lagarde has said the IMF would be “delighted” to co-operate with the China-led Asian Infrastructure Investment Bank (AIIB).

The AIIB has more than 30 members and is envisaged as a development bank similar to the World Bank.

Mrs Lagarde said there was “massive” room for IMF co-operation with the AIIB on infrastructure financing.

The US has criticised the UK and other allies for supporting the bank.

‘High standards’

The US sees the AIIB as a rival to the World Bank, and as a lever for Beijing to extend its influence in the region.

The White House has also said it hopes the UK will use “its voice to push for adoption of high standards”.

Countries have until 31 March to decide whether to seek membership of the AIIB. As well as the UK, other nations backing the venture include New Zealand, Germany, Italy and France.

Mrs Lagarde, speaking at the opening of the China Development Forum in Beijing, also said she believed that the World Bank would co-operate with the AIIB,

China established the Asian lending institution in 2014 and has put up most of its initial $50bn (£33.5bn) in capital.

http://www.bbc.com/news/business-32007090

JASON & The Black Swan Probability

Black Swan

30 Comments

By JC Collins

Now that current events are confirming the analysis which has been developed here over the last year and 2 months, it’s time to move forward and understand the broader ramifications of what these changes will mean for the monetary world.

There have been numerous proclamations over the last few years in regards to the irrelevance of the International Monetary Fund and the SDR – Special Drawing Right.  Now that it has been officially announced by both China and the IMF that the yuan will be added to the SDR composition by the end of this year (stating that they are in discussions is tantamount to a confirmation of such), the conspiracy theories and faulted analysis of the BRICS countries overthrowing the IMF and World Bank, and by default America, should be tossed in the trash bin where they belong.

It has been repeatedly stated here that neither China, nor the United States, want the added domestic pressure of using their respective currencies as the global reserve unit of account.  Yet, the US Congress has failed to ratify the 2010 IMF Quota and Governance Reforms.  Reforms, which will restructure the IMF Executive Board and quota system, leading into the systemic framework changes to the international monetary system.

Treasury Secretary Jack Lew stated yesterday that America is beginning to lose influence in the world, along with veto control in the global institutions which it has dominated since the end of WW2.

The Plan B reforms which the G20 and IMF announced earlier in the year are now materializing in the form of the exodus by European countries to the Asian Infrastructure Investment Bank, and the ongoing discussions between Ukraine and Greece with the eastern powers of Russia and China.

The SDRM – Sovereign Debt Restructuring Mechanism, meme and media representation is beginning to pick up momentum. As each region and country falls further into economic deflation, and as the world enters the final stages of deleveraging from the expansion of debt which culminated in the financial crisis of 2008,  the obvious nature of the multilateral architecture will become more clear.

The statistical research which has concluded, and been pompously presented as the collapse of the USD and the rise of a new gold standard, or trade system, is inherently flawed in that it’s analytical baseline is positioned upon past economic data.

This is the same data which has led most analysts off track from the slowly rising framework of the multilateral SDR system. Whether it’s QE policies, ZIRP, NIRP, or the migration of gold, no economic model has accurately predicted the full transition because the transition segments, such as the QE deleveraging, can not be referenced and understood on old economic data and models.

The Group of Thirty is a non-profit organization which is mandated with restructuring the international monetary system, and it’s members are a list of the top central bankers and economists in the world. These are the people making the decisions and engineering the multilateral framework.  America, China, Russia, Europe, and all other prominent country’s and regions are represented on its board.

Occasional Paper 87 from the Group of Thirty (G30), published in May, 2013, titled Debt, Money, and Mephistopheles, makes clear plans for the “redesign of financial regulation and macroprudential policy” to prevent another crisis like the one in 2007. The paper goes on to describe how a “combination of macroeconomic and macroprudential policies are needed to navigate against the deflationary headwinds created by post-crisis deleveraging“.

From this policy paper the purpose and intent of the QE strategy is clear. Presenting QE as leading to the collapse of the monetary system is not representative of its purpose and design.

When we extrapolate this knowledge into the vast amount of analysis and predictions which have been offered up over the last few years, we begin to realize the error in relying on old economic data and models in attempts to determine future outcomes.

This is why most analytical predictions will not be realized.

In addition, analytical outcomes with an agenda use active deceptions as methods of persuasion. These active deceptions:

  1. Understate
  2. Overstate
  3. Distort

These distortions will degrade the predictive value of a statistical model, leaving both writer and reader floating freely in the make believe world which relies on past data.  Data which does not take into consideration the fundamentals and macropudential mandates of the multilateral transition plan.

There is much talk of a Black Swan Event in the economic and geopolitical worlds.  This concept has been used by endless analysts and columnists as the emotional content in essays and blog posts.  The Black Swan Event, we are told, will lay waste to any plans which may be in the works, and lead the world into years and decades of depression, and/or war.

But lets take a closer look at this concept, and the probability of something of this caliber actually taking place.

JASON, a study group division of the MITRE Corporation, completed a Rare Event study in October, 2009.  This study analyzed and measured the probabilities of 9/11 magnitude events.

Based on the methodologies used in the study, it was concluded that between the years 1968 and 2006, there was a 23% probability of a 9/11 magnitude event.  Obviously there was such an event, and the probability was still less than 50%.

Based on the same baseline data, the group determined that the probability of such an event between 2009 and 2019 is 7%.

What is interesting is that the study referenced the term Black Swan Event.  Here is what it had to say:

We frequently encountered references to “Black Swans” in our study. The Black Swan metaphor was popularized by a recent book The Black Swan: The Impact of the Highly Improbable by Nassim Taleb [39]. The metaphor has clearly had great impact on how people are thinking about rare events, so we considered Taleb’s argument carefully.
Taleb’s argument is that many high-magnitude rare events (Black Swans) are fundamentally unpredictable, and that efforts to predict them are futile, dangerous, and even intellectually fraudulent – particularly when using statistical models based on past observations, and especially if the statistical model assumes Gaussian variance around some mean event size. His term “Black Swan” is a reference to a (supposed) European belief that all swans were white until black swans were discovered in Western Australia in the 1700’s. Black swans came to be used in philosophy as an example of a logical failure of inductive reasoning – that is, just because all previously observed swans are white does not necessarily mean that the next swan will be white.
Taleb makes important points but carries his argument too far. It is unfortunately true that some mathematical models for risk forecasting assume Gaussian variance despite substantial countervailing real-world evidence. Taleb’s criticism of economic risk models (such as the Black-Scholes-Merton options pricing model, which assumes that market prices make Gaussian-distributed moves) is particularly poignant given the world’s current economic situation. But though this is damning criticism of specific models’ faulty assumptions, it is not a damning general criticism of the careful use of modeling to help predict risk.
What we can take from all of this is that the probability of a 9/11 magnitude event is marginal at best, and the probability of a Black Swan Event is even less so.
The use of the term is out of proportion to the realities taking place in the monetary infrastructure. The analytical conclusions which call for such an event, along with the collapse of the dollar, and global depression, are inaccurate because they are based on old economic models which haven’t accurately considered the changing dynamics and architecture of the emerging multilateral, such as the designed deleveraging purpose of QE policies.
Though the USD will adjust to find a new position within the multilateral system, it will not collapse.  The stock markets will be the last to deleverage, but that is an adjustment which is required to bring back balance to the system. The world will not end and the lights will come on tomorrow.  The transition away from the USD as the primary unit of account is taking place piecemeal and with intent.  The real world applications of this transition model are not yet clear, but this is more a time of opportunity as opposed to the fear which is being promoted based on old economic modeling.   – JC

http://philosophyofmetrics.com/2015/03/19/jason-the-black-swan-probability/#more-2166

The steady derailment of the U.S. financial system

economic derailment concept

This is the second installment of a series. Read the first installment, “One last look at the real economy before it implodes.”

Consumer spending in the U.S. accounts for approximately 70 percent of gross domestic product, though it is important to note that the manner in which “official” GDP is calculated is highly inaccurate. For example, all government money used within the Medicare coverage system to pay for “consumer health demands,” as well as the now flailing Obamacare socialized welfare program, are counted toward GDP, despite the fact that such capital is created from thin air by the Federal Reserve and also generates debt for the average taxpayer. Government debt creation does not beget successful domestic production. If that were the case, then all socialist and communist countries (same thing) would be wildly enriched today. This is simply not the case.

That said, the swift decline in manufacturing jobs in the U.S. over the past two decades, including a considerable 33 percent overall decline in manufacturing jobs from 2001 to 2010, leaves only the consumer and service sectors as the primary areas of employment and “production.” The service sector provides about three out of every four jobs available in America, according to the Bureau of Labor Statistics.

The reality is that America actually produces very little that is tangible beyond Big Macs, pharmaceuticals and the occasional overpriced fighter jet that doesn’t function correctly and is filled with Chinese parts. All three will kill you at varying degrees of speed.

In the first part of this article series, I discussed the true state of global demand, along with the unstable situation within numerous indicators from exports to retail. Swiftly falling global demand for raw materials as well as consumer goods is an undeniable reality. This is a distinct problem in terms of the U.S., which has been, up until recently, the primary consumption driver for much of the world. As I plan to show, U.S. demand is about to fall even further into the abyss as real unemployment and personal debt take their toll.

Now, it is probably important to address the lies presented in the mainstream and by the BLS in terms of unemployment statistics because even after years of alternative analysts debunking establishment stats and how they are calculated, we still end up hearing the same arguments parroted by disinformation agents and unwitting useful idiots.

Such people continue to parade around boasting about the latest BLS reports on job creation claiming that “all is well” because the unemployment rate has dropped to 5.5 percent and all other talk to the contrary is “doom and gloom.” So, once again, I must relate the fact that the current BLS numbers are an utter sham.

Official unemployment stats are arrived at through disingenuous methods of calculation that were introduced in the 1990s, just before the bursting of the dot com bubble; the introduction of artificially low interest rates, which created the derivatives crisis; and the steady derailment of the U.S. financial system, which has occurred ever since.

So who is actually counted as employed and who is not counted as employed by the BLS?

Out of all working-age Americans, 92 million are without jobs and are not counted by the BLS as unemployed. Of the 102 million working-age Americans without work today, only 8.7 million are counted by the BLS as unemployed. Why?

Well, if you ever read establishment-leaning propaganda websites like Factcheck or Poltifact, the argument is essentially that these 92 million Americans are not counted because they “refuse to participate,” not because they can’t find adequate employment and not because the government is misrepresenting the numbers. Yes, that’s right, 92 million Americans don’t count because they clearly must not want work.

So, first, I would ask how it is that the BLS comes to the conclusion that nearly one-third of the U.S. population does not want to work? Is it through its so called “household surveys?” Surveys, just like public polls, can be easily manipulated to affirm any particular bias merely by changing how questions are phrased. I would certainly love to see the raw data from such polls before the BLS adds its own spin.

Second, even if such claims were true and tens of millions of Americans did not want to work, why would this matter? Shouldn’t they still be counted as unemployed in order to draw the most accurate picture of our economic situation? Wouldn’t 92 million Americans apparently on a long-term labor and productivity strike have a severe negative effect on real GDP? And obviously they must be surviving somehow. Wouldn’t 92 million people eventually require government assistance through food stamps and welfare? Does none of this matter to the BLS in terms of the overall economic picture?

Third, if the assertion is that 92 million people do not want jobs, then by extension the BLS would have to show that those millions of people could in fact get a job if they simply tried. Where are these tens of millions of jobs that Americans are refusing to apply for and what do they pay?

Fourth, a common misrepresentation attached to the claim of “refusal to participate” is that many of these Americans are teens in school (16 to 18) and “retirees” (55 or older). The BLS and the mainstream media simply assumes these people do not want a job and should not be counted as unemployed. Of course, the BLS includes such people in its stats when they do have jobs. So, according to the BLS, if you are 16 or 55 or 65 and you have a job, then you count. If you are 16 or 55 or 65 and don’t have a job, then you don’t count. See how that works?

Fifth, millions of Americans are losing long-term unemployment benefits every quarter and are being removed from BLS statistics. Many of them are not teens or retirees. These are average-working-age adults who now no longer have any real launch pad to progress in their career or life, and who should be fully motivated to obtain work if jobs are so readily available. Again, where are these jobs that said prime-working-age people refuse to accept?

The BLS also invariably discounts the number of working-age Americans who enter the market as well when boasting of jobs created to the public. Job growth numbers do not weigh the number of new participants each month with the number of supposed jobs made available, thus creating a misconception about how many new jobs are actually needed to keep the economy functional.

Another important factor to observe in government labor statistics is the issue of part-time work. When the BLS releases its monthly stats on unemployment, it does not widely promote or discuss the fact that 18 percent to 20 percent of those labeled “employed” are considered “part-time employed.” The BLS defines “part-time employed” as anyone who works one to 34 hours per week. Yes, if you work one hour per week, you have helped to bring down the overall unemployment rate of the U.S. to a fantastic 5.5 percent, even though you likely have zero ability to support yourself financially, let alone a family.

What does the 5.5 percent unemployment number actually represent on a fundamental level where the real world actually matters rather than the world of hypothetical calculations? Not a damn thing. The number is absolutely and unequivocally meaningless.

If one were to calculate unemployment using pre-1990s methods, as websites like Shadowstats.com does, counting U-6 measurements as well as the underemployed, you would come up with a U.S. jobless percentage closer to 23 percent.

Many of those workers in the service sector on the higher end of the part-time and full-time spectrum still cannot support themselves adequately due to falling wages, rising prices and growing debt obligations, which brings me to the next problem at hand.

Beyond unemployment as a destroyer of consumer demand, there is also personal debt. Much of the focus within the mainstream and even alternative economics revolves around national debt (I will cover the many lies surrounding national debt in my next article). However, effects on fundamental demand are far clearer when one examines household liabilities. According to averages supplied through government stats (meaning the real numbers are likely far worse), the average American household suffers from between $10,000 to $15,000 in credit card debt, $155,000 in mortgage debt and $32,000 in student loan debt.

Americans owed nearly $12 trillion overall in 2014, an increase of 3.3 percent over 2013. Declines in some debts, including a decline in credit card debts since 2011, is attributed to numerous defaults rather than repayments.

What we have here is a deadly fiscal combination; namely the combination of real unemployment at permanently high levels and real personal debt at unsustainable levels. This is the core reason behind the collapse in global demand that was discussed in the first installation of this series. With U.S. consumers no longer able to support their historical consumption habits and with the inflexible skeleton of the U.S. economy in particular dependent on past consumer dynamics, the system has little financial plasma left circulating.

This is not necessarily a new trend; but 10 years ago, Americans were able to offset their dwindling buying power by taking on massive debts through easy Federal Reserve fiat fueling questionable bank loans. They no longer have this option; thus, consumption is going to degrade (and is degrading) to the point that the current financial structure, stuck in its rigid and fragile dynamic, will collapse. There is no way around it.

As stated in my last article, the numbers given here are in most cases establishment-generated statistics. A common argument among state apologists and propagandists is that we in the alternative economic field should be labeled “hypocritical” if we debunk some mainstream stats while using others as reference points. I would make clear yet again that it is the contradictions within the government’s own numbers and claims that alternative analysts are concerned with. My view is that when mainstream numbers actually reflect negative economic trends, they should be multiplied according to other prominent factors. That is to say, when the government bureaucrats and fantasy masters finally admit things are bad, they are actually much worse than indicated.

Some mainstream statistics are outright fraudulent; some are half true; others are factual yet hidden in plain site from the general public. In between the lines of all of this information, good and bad, alternative economists attempt to discern as much foundational truth as possible. As this series continues, I believe readers new to the liberty movement, as well as longtime activists, will come to view a wider and fuller picture of our fiscal situation and come to the same conclusion I have: that the manner in which we live today is about to drastically change, and that this coming change is being hidden from us deliberately by those who wish to use a tactic of financial shock and awe to their ultimate advantage.

–Brandon Smith

The IRS and the propaganda that perpetuates it

Uncle Sam has your tax and bailout money

It is tax season, and everybody feels the compulsion to conform to ensure they have paid their “fair share” to Uncle Scam.

Of course that is a ruse, and that’s why I call him Uncle Scam. The income tax is not collected to fund the operation of the government. It is not needed to fund the operation of a government that can print money to infinity. The income tax is nothing more than a regulatory system and an information collection system.

I am not the first or only one to ever say this, but few understand it. As far as I can tell, information that the income tax is not necessary to fund government was first uttered publicly by a government functionary during the last year of World War II. Beardsley Ruml, chairman of the Federal Reserve from 1941-1946, said in a speech before the American Bar Association, “The necessity for a government to tax in order to maintain both its independence and its solvency is true for state and local governments, but it is not true for a national government.”

You may ask how this is so. Well ask yourself this question: If you had a printing press and could print money as much and as often as you like, would you ever have to work again? The government has such a printing press.

So why is there an income tax? It is to regulate consumption, control behavior, control and redistribute wealth, and compile dossiers on all citizens. The Form 1040 is the “taxpayer’s” dossier.

In a system as the whole world lives under today — where central banks create “money” (bank credit) at will — consumption of the people must be strictly regulated. Government consumption competes with the consumption of the people. If consumption is not regulated, “money” becomes worthless and the fraud of the financial system is then revealed. Money must be regulated out of circulation in order to prop up its value and maintain the system.

The concept of regulation is the key to understanding government finance. This is not taught in the public or private school systems. It is not taught at any university or college teaching mainstream economics. It is only taught in the few places that teach Austrian economics.

The reason is that you are not supposed to know that government creates its own money and uses it to steal the wealth of the American people and the people of the world. And although they benefit greatly from this spoils system, not one accountant, CPA or tax lawyer in 10,000 even comes close to suspecting what I am stating.

The monetary system of the United States and its income tax system have to do with the transfer of real resources from the people to the government, banksters and corporate state without payment.

People tell me that the subject of money and finance is a dull and monotonous study. Is it? When you look upon the millions of graves of American soldiers, as well as those around the world both Jewish and Christian, you are looking at the real Holocaust of American democracy created with bank credit and propaganda. Not one Christian preacher or Jewish rabbi has said one word to reveal this racial genocide to their people. The guilt of the “Holocaust” is upon their heads. Their purpose has been to confuse cause and effect in the minds of the people. They have succeeded.

Simply put, the power of propaganda to distort and control the mass mind is more powerful than all the armies and military technology of history combined.

The “income tax” as it is called is both immoral and illegal. The IRS was formed in 1913 following the adoption (it was never properly ratified) of the 16th Amendment. It is one of the greatest frauds ever perpetrated upon the American people. Now no one questions it. They just grouse about it every spring.

The income tax was enacted even though the U.S. Supreme Court had only recently ruled in Pollock v. Farmers’ Loan & Trust Co. that certain taxes on direct income were unconstitutionally unapportioned direct taxes and violated Article I, Section 9 of the U.S. Constitution. Not covered in Pollock is the fact that the income tax also violates the 5th Amendment: No person shall… be deprived of life, liberty or property… nor shall private property be taken for public use without just compensation.

A heavy progressive or graduated income tax is the second plank of the Communist Manifesto. The central bank (aka the Federal Reserve) is the fifth plank. The United States has essentially adopted all 10 planks of Marxism. For its part, the Federal Reserve was formed during a wave of bipartisan progressive legislation passed during the early 1900s that transformed the American economy and society from one of roughly laissez-faire to one of centralized statism, as Murray Rothbard writes in “A History of Money and Banking in the United States.” The Fed was also fraudulently promoted, as those who were working behind the scenes to pass the legislation were acting in public as if they opposed it.

The U.S. government had functioned without an income tax for more than 100 years, except during the time of the War of Northern Aggression, when Abraham Lincoln passed an unconstitutional tax on income to fund his war machine.

During the run-up to the 16th Amendment, President Woodrow Wilson promised Americans that only those earning more than $10,000 (about $100,000 in today’s dollars) per year would even pay taxes and the tax rate would never exceed 3 percent (now 36.9 percent). In the beginning, that was so; but within four years families were taxed on all income above $1,000 and the top rate had risen to 76 percent, demonstrating how the elected class lies without compunction.

The government began tax withholding in 1943. By withholding a portion of a worker’s paycheck, government is able steal the wealth of its citizens slowly over the course of a year, silently and with little outrage. This is vile treachery, even if the worker receives his money back when he files his “income taxes.” It means that for a year the government has had an interest-free loan on the backs of the citizenry. When the government returns that money, it is viewed as a benevolent master by ignorant citizens who assume the government is giving them some kind of gift, never realizing how poorly they have been used.

The income tax involves a confession of judgment with the threat of incarceration and penalties if one does not confess, i.e., sign the 1040 form. This act of incrimination is presented in supreme hypocrisy as a “voluntary” act. Can you imagine how many millions of Americans self-incriminate in a blanket confession on an IRS 1040 form? Even in a criminal proceeding a defendant is not required to testify against himself. In fact, he is not even compelled to speak at all, nor confess in any form.

After you have confessed judgment under duress, the IRS then takes the information that you supply and uses it to incriminate you. This, my friends, is exactly the system used by Nazi Germany that Americans have been taught to hate. What chicanery! What deception.

Do you now believe in the power of propaganda? Would you believe it if you knew for sure that the income tax system has nothing at all to do with collecting money to support government operations? I remind you again that the power and propaganda of Nazi Germany came out of bank credit. This is not in the history books. It was not mentioned in the world showcased Nuremberg Trials. The issue was never raised because it would have revealed that the United States was a de facto wartime ally of Nazi Germany in that they used military and psychological warfare against each other and equally against their own respective people.

What did the war and the Nuremberg Trials accomplish except to conceal genocide against the Anglo-Saxon Germanic race?

The Bundesbank today is an identical bank credit machine as was the Reichebank of Hitler Germany. The Reichebank did not change its name to Bundesbank until 1948, two years after the Nuremberg Trials. After millions of dead Jews and Christians, nothing has changed but the names. God help us!

At the Nuremberg Trials, not one German Reichebank official was tried, yet the military colossus of Nazi Germany could not have been possible without bank credit (money) created by the Reichebank. Is the world deceived into fixation on the “Holocaust” to cover the bank credit crime as the origin of all modern wars?

The military men tried at Nuremberg were pawns and decoys of this master deception. Quite possibly, not one of them had any awareness that they were pawns of international bank credit. This is equally true of allied military people, as well as the judges themselves at the trial.

The currency you use to acquire things you need is not money. Federal Reserve Notes are not notes. They are not dollars, and they do not satisfy the definition of money. So what are they? They are commercial paper.

The dollar is a myth. Oh, I know that we have green strips of paper in our pockets that we believe are dollars. The numbers on the green strips of paper are our “dollars.” So what we “spend” every day are the numbers or the symbols on our green strips of paper or in our checking accounts.

Now to set this illusion in concrete, the IRS does reduce the numbers (money) in our checking accounts when we authorize it to do so via our Form 1040 tax return. But no one ever asks where the numbers (money) go when deleted from our checking accounts. These numbers (money) do not go to Washington as taxes to pay anything. They go into the cyberspace of the IRS computers.

The tax system is a masterpiece of deception and trickery.