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Freedom by Friday Archives
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11-9-09
You Were There
Number of failed
banks in 2009 so far: 115
At some
point in the decades to come, you'll
be able to say, "I was there!"
It's hard for people to
grasp at the time history is being
made, but not when you consider the
things that are happening and have
happened. The Internet revolution is
nothing short of a 'movable-type
printing press' game-changing event
that ushered in a new era akin to
The Renaissance. Fortunes have been
made and are still being made. The
revolution moves on.
There's a curious cycle
in history where a massive change in
human evolution- for better or
worse- occurs. O A.D., The Roman
Empire forms. 500 A.D., Roman Empire
falls and gives way to a new era:
The Dark Ages. 1000 A.D. marked by
the battle of Hastings in England in
1066, The Dark Ages gives way to the
Medieval era. 1500 A.D. marked by
the discovery of the New World and
printing press, we have the
Renaissance.
2000 A.D., marked by the
Information Revolution, we have...?
You were there...
whatever it is we're witnessing. No
question about it, the Information
Age has improved our lives.
There's also a smaller
cycle that's in 50-year increments.
Obviously, the marking event in the
20th century was WWII and
the 'handing over' of world
domination from Britain to the USA
(world domination in this case is a
matter of the control over marine
trade routes).
Are we now seeing the
USA hand over power to someone else?
China?
Perhaps. The answer to
this question is as important as the
answer to the deflation/inflation
question we've been pondering here
at length.
The
answer to both these questions will
define your fate and the fate of
those you love.
To
that end, your loyal scribe digs
deep to bring you some answers. Of
course, anyone who says they 100%
KNOW the answer to these questions
is lying, but what I can offer is
some tell-tale signs to watch as a
pre-cursor to the answer...
First up, the
inflation/deflation question. What
is going on out there? The IMF just
put 200 tons of gold up for sale to
raise money for all the
international bailouts. Traders were
surprised it wasn't the Chinese who
purchased but it was in fact India.
And they paid top prices for it-
gold has hit a series of record
highs this last week, though you'd
never have known by the lack of
media coverage (Hmmm... I wonder why
it wasn't covered? Who owns these
media outlets??).
This was the largest
purchase of gold bullion in HISTORY.
What does this mean
exactly? What it effectively means
is a transfer of wealth away from
weak entities (the IMF sponsors and
weaker countries) to stronger ones:
India. China, India and now Russia
and Brazil are hoarding gold.
Why? What do they know?
The US dollar is the
world's reserve currency and this is
America's key advantage
economically. It's now also become
America's Achilles Heel because
politicians have repeatedly abused
this advantage.
Gold is the antithesis
to the US dollar because it is the
ultimate store of wealth. If people
are buying gold, they're saying
they're losing faith in the dollar.
If people take this so far as
REPLACING the dollar as the world
reserve currency, it's pretty much
over for the American Empire as we
know it. Someone has to pay for all
this military that controls trade
routes. Indeed, there have allegedly
been secret talks between foreign
powers to price oil in a currency
other than the dollar.
Now of course, America's
politicians won't take this lying
down because it won't win any votes.
The answer to both these
questions- inflation/deflation
winning and China/USA winning - is
rooted in what I just outlined
above:
How
far will US politicians go?
I
truly believe the answer to what
happens next in world history is
broken down like this.
Will they just print as
much money as they need? Will they
begin a trade war with China? Will
they start a shooting war with China
before they let them take over?
History shows there is
no limit to politicians' stupidity,
but, there is one crucial obstacle
to them in this case: The Federal
Reserve.
The Fed- an independent
body- is in charge of the printing
press and these people know the
consequences of letting it get out
of control. They also know what
would happen if they let Congress be
in charge of it; hyper-inflation as
they just printed as much money as
they needed to hand out in payments
to buy votes.
So, the answer to this
critical question of
deflation/inflation lies here: Will
the Fed maintain its independence
from Congress?
If it does, we can
expect deflation and a couple of
lost decades a la Japan and the
dollar may yet keep its reserve
status as it would be the best of a
bad bunch of countries in the world.
This would be a kind of economic
'ice-age'. US debt would actually
increase in value as would all debt.
It's a nightmare scenario and one
where pressure may be too great for
the Fed to maintain independence
even if they succeeded at first.
Enter second scenario...
If it doesn't maintain
its independence, Congress prints as
much money as it wants, US debt
falls in value, hyper-inflation
makes prices of everything
sky-rocket and interest rates then
go through the roof. The dollar
would have to lose its reserve
status and thus end American
supremacy.
What are the chances the
Fed will maintain its independence?
Well a bill has already been passed
to begin the process of getting
control of the printing press: The
proposed legislation to reform
America's financial service
supervision includes granting the
Secretary of the Treasury a veto
over Section 13(3) emergency action
by the Federal Reserve Board of
Governors.
Whenever you see words
like "emergency action" you can be
worried. An "emergency" is when the
voters get angry enough to vote you
out.
But take heart, for this
is empowering. If you're informed
you can make your fortune regardless
of the outcome. I believe we've just
discovered an 'early-warning system'
for the answer to the
inflation/deflation debate. I'll
keep you posted.
I'm afraid there are no
good outcomes here, just different
versions of bad. The only thing that
could save such outcomes is if the
American consumer came out in force.
So will that happen?
Let's dissect the latest
unemployment numbers and you be the
judge...
The government
propaganda continues. They chose to
use the more generous "establishment
survey" to quote numbers- the real
numbers are from the "household
survey" which stated that
unemployment actually soared to 15.7
million.
Even the government
figures that are messed with (we've
covered this in previous issues)
with things like excluding people
who've been out of work for over a
year are now at 10.2%.
The truth is
unemployment is now highest since
records began if honest figures are
used.
I just don't see this
population rushing out to the mall
to buy "stuff" in a hurry.
If you were a powerless
person stuck in a job and loaded
with debt, this would be worrying.
But you don't have to accept that
fate. The whole point, The League of
Power exists is to guide you to
wealth, power and freedom. NOW is
the time to build wealth with a
business of your own, investing what
cash you have to take advantage of
ANY situation.
You can find a variety of different
opportunities by going here:
http://www.leagueofpower.com/dmembers.htm
Until next time,
Mark Patricks
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