Titanic Forces Part 3

Author David W. Franklin

SELF-DIRECTED QUESTIONS and ANSWERS

What are the probabilities that your conclusions are wrong?

My Answer: Based on mathematical principles, The Supreme Law of Economics, and the reliability of History and Cycles repeating for reasons of similar cause, I would say the probabilities of being wrong are less than 15%. The mathematics of the impending inflation are infallible, but the EFFECTS from the CAUSE, to be seen in the future will always be dynamic to a degree.

It is possible the equity Markets could be held steady in a range, or even moved higher slowly over time, to give future retirees “hope” of getting out of the markets, the value they put into it. In the meantime, the Federal Congress, being fully informed of the drastic effects that would follow retirement fund liquidations, could restrict withdrawals. Delay is one way to keep the CONfidence game going.

What other actions could the private central bank take, or have the Federal Congress do, to prevent retirement savings from causing inflation?

My Answer: As I indicated above, they could have the Congress pass severe restrictions on the amount of withdrawals permitted during a certain time period.

In principle, that would be admitting the fact that the “electronic savings” are Not Real Wealth. Those electronic savings are, as I said earlier, “as empty as a folded paper bag.” Restricting or refusing to permit liquidation is a tacit admission the retirement “vault” is “empty” and void of any intrinsic, Real Wealth value.

Such was the case in the Great Depression for banks who failed to safeguard the cash deposits of its customers. Bank runs wherein the demands for withdrawals exceeded the available cash on deposit, constituted a de facto admission the bank was bankrupt. Simply, those banks had violated the Supreme Law of Economics. Same for all electronic savings. They have already been bankrupted (consumed) by prior Federal deficits. The same events took place in the early 80′s with the National Savings and Loan fraud. That “bailout” makes recent bailouts look like filling a cup with water!

I think one can make a safe bet on the following:

When “Baby Boomers” want to retire and “cash in” their electronic savings, only to find out they cannot do so, or are severely restricted, or realize that that equity markets have fallen so far as to have reduced their “savings” by less than half or very much more, they are going to be really, really, REALLY ANGRY!

Or, the Federal Congress could declare a NATIONAL EMERGENCY, or MARSHAL LAW, and suspend indefinitely, part, most or all requests for selling and conversion into Real Wealth. The reason for doing so could be “Grounds of National Security”. Such a declaration in a once Free country would be tantamount to the Federal Congress admitting to the ponsi fraud of all their Social Security like “TRUST FUNDS”, electronic “savings”. Under these severe economic conditions, one should expect the same kind or withdrawal restrictions being placed on FSLIC and FDIC “insured” electronic bank “savings” deposits.

Or, the private central bank could do what North Korea just did: exchange one hundred old paper notes for a single new one. Or exchange one hundred “old” electronic units of “currency” for just one “new” one. That would certainly go a long way to reducing the supply of “withdrawable” spendable currency in the hands of the people. And let’s not forget the proven fraud of moving the decimal over a number of zero’s to the left.

All of the above would not be much different than the dictatorial actions of FDR in the 1930′s. For example, FDR did not hesitate to appoint an additional Supreme Court Justice in order to politically “pack” the court in his favor.

After the Gold was received by the private central bank, FDR almost immediately had the Gold “revalued” (actually regulated) UP from $20.00 dollars per ounce to $35.00 dollars per ounce.

Instead of making the depression much worse, why didn’t they do that in the first place? Why not revalue the People’s Gold to $35.00, let the people continue to have possession of their Gold and profit from higher purchasing power! Why didn’t’ that happen, in favor of WE THE PEOPLE?

That revaluation up to $35.00 per ounce made for an instant 8 billion dollar profit to the private central bank and the government. So you see, even in 1933, there was a BIG BANK BAILOUT, not much different in principle, than the one in 2008. How’s that for history repeating?!

What could ‘soon to retire’ Baby Boomers do now, to protect the purchasing power of their electronic savings?

My Answer: I am not qualified nor certified to give any one financial advice. However, I can relate what others have done to protect themselves, once they understood the future realities and risks I have presented here. Many have, and will shortly liquidate their electronic retirement accounts, pay any taxes or penalties due, and convert them into Real Wealth savings. Read again, the example of what the farmer’s family did to have Real Wealth savings and you will be onto the right track. Becoming as debt free as possible should be a high priority on one’s TO DO list. My personal future “view” tells me there will be dramatic, drastic changes in the living standards of most Americans. The Federal Congress promises to deficit spend, and the private central bank promises to manage the scarcity of Real Wealth to come, and to keep the corporate “friends and family” of the Federal Congress and banks first in line for what Real Wealth will be available.

You should already understand this is going to happen by virtue of WHO… has benefited from all the recent legislative acts: Big Bank Bailout, AIG, GM, Bank CEO’s, multi-million “dollar” bonuses, Health Care and so on. It was NOT the American citizen. All the people got was the obligation to pay with interest, all these billions of debt obligations, while those who benefited quickly converted their free benefit into debt free Real Wealth.

AUTHOR’S CLOSING COMMENTS

It may be argued by the reader that this entire article is flawed by being “flavored” or “colored” by the Author’s personal experience and opinions. Certainly, to a degree, that may be true.

However, it matters not the particular “flavor”, “color” or “spin” which anyone chooses to place on this story. The facts of History presented herein are true, unchangeable and beyond refute! Those events happened, and did so because men in positions of power and influence decided to take the action to make them happen.

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness.”

quoted from The Declaration of Independence, 1776.

The Second Supreme Inviolate Law of Economics states that the production of Real Wealth requires labor. Labor is painful.

From one man’s perspective, a true meaning of the phrase “…the pursuit of happiness.” would be avoiding pain whenever possible. That is, the pursuit of happiness is the avoidance of pain: in particular, the pain of laboring.

History will always repeat, but NOT because of the true nature of human beings to seek to produce and acquire the most Real Wealth for the least amount of pain. Creating, inventing and producing more efficient means of producing Real Wealth from resources is inherent and instinctive in human nature.

The repeating cycles of wars, rumors of wars, recessions, depressions, civil war, civil unrest and inflation, will always accompany every human civilization, for the following reasons:

Those who the People choose to keep the People’s property and inalienable rights secure, in the end, always elevate themselves to positions of status, power and influence above that of

those who labor to supply them with Real Wealth.

The certain sign of approaching civil unrest or worst, is observed by all the People, when those who the People chose to secure their property and rights, seek to violate The Second Supreme Inviolate Law of Economics: that is, to obtain the People’s Real Wealth for nothing!, for NO LABOR!

“Nothing from nothing ever yet was born.” Epicurus

This “SIGN” of The Second Supreme Inviolate Law of Economics being violated is observed daily now, on the national political scene.

I close with relevant words of wisdom from the late Ayn Rand who, like I, share the same presence of mind.

“Watch money.

“Money is the barometer of a society’s virtue.

When you see that trading is done, not by consent, but by compulsion.

When you see that in order to produce, you need to obtain permission from men who produce nothing.

When you see that money is flowing to those who deal, not in goods, but in favors.

When you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you.

When you see corruption being rewarded and honesty becoming a self-sacrifice, you may know that your society is doomed.”

Something to Reflect On, by Ayn Rand 1959

AUTHOR’S NOTES

NOTE No. 4

This Executive Order was conspicuously posted in public places throughout the country, in particular post offices. Also, please note the fact that the very wording of this Executive Order admits to the fact of the Gold Bullion, Gold Coin and Gold Certificates being “owned” by people
in possession of them. This Executive Order contained stiff penalties of fine and imprisonment for failure to turn in the “owned” Gold.

Tragically for the American people, they were unaware that Executive Orders do not apply to private persons and private property. Such orders are intended for government officials who must carry out or “execute” the Laws of the United States, which is the very function of the Executive Branch of government.

This truth is evidence by a statement made by the Department of Justice in response to a Freedom of Information Act request. In their response they stated the following:

“A fact that is frequently overlooked is that Executive orders and proclamations of the President normally have no direct effect upon private persons or their property, and instead, normally constitute only directives or instructions to officers or employees of the Federal Government.”

NOTE No. 5

“In comparison to the 50 Billion “dollar” fraud performed by Bernie Madoff, the “transfer” (heist) of the ownership of 10,000 metric tones of the People’s Gold to a private bank and the Bank of International Settlements for no Real Wealth in return, makes Madoff’s scam look like the theft of a single grain of sand from a beach.” Author unknown

NOTE No. 6

See the following link:

http://www.federalreserve.gov/pf/pdf/pf_2.pdf

“Goals of Monetary Policy

“The goals of monetary policy are spelled out in the Federal Reserve Act, which specifies that the Board of Governors and the Federal Open Mar­ket Committee should seek “to promote effectively the goals of maxi­mum employment, stable prices, and moderate long­term interest rates.” Stable prices in the long run are a precondition for maximum sustainable output growth and employment as well as moderate long­term interest rates. When prices are stable and believed likely to remain so, the prices of goods, services, materials, and labor are undistorted by inflation and serve as clearer signals and guides to the efficient allocation of resources and thus contribute to higher standards of living. Moreover, stable prices foster saving and capital formation, because when the risk of erosion of asset values resulting from inflation—and the need to guard against such losses—are minimized, households are encouraged to save more and busi­nesses are encouraged to invest more.”

NOTE No. 7

See the link: http://www.pbs.org/newshour/bb/business/jan-june09/solman_03-17.html

From a PBS report seen on the NEWSHOUR aired on March 17, 2009 titled:

“When the Government Writes Checks, Where Does the Money Come From?”

PBS’s PAUL SOLMAN: “But what’s the difference between minted money and Federal Reserves, we asked economist Simon Johnson?”

SIMON JOHNSON, MIT Sloan School of Management: “It’s quite funny. The Federal Reserve insists, absolutely categorically, “We do not print money. That’s the U.S. Mint that prints money.”

“But, of course, the Fed issues money. It’s a great deal, right? Instead of having to print it on a printing press, you just do it digitally. It doesn’t actually cost you anything, hardly anything to issue these new digits, these new bits of code on a computer somewhere.”

PBS’s PAUL SOLMAN: “In other words, these Federal Reserves or federal funds are just digital promises, computer blips, not cash, but just as good, no different than the money in your checking account.” Words underlined and in bold by the Author

And exactly, what kind of “money” IS in your checking account in the possession of the bank’s computer? Is it Real Wealth “dollars”, or mere “computer blips” that you cannot see, touch or hold in your hand?

Would you like more evidence that modern money today is nothing more than mere “computer blips” typed from a keyboard “somewhere”, which originate directly from the keyboard and computer of the private central bank? Would words right from “..the horses mouth.” convince you of this fact and truth?

On 7 June 2009, CBS News conducted an interview of the chairman of the private central bank. When asked if it is “Tax money” the central bank is spending, the chairman answered:

“It’s not tax money. The banks have accounts with the Fed, much the same way that you have an account in a commercial bank. So, to lend to a bank, we simply use the computer to mark up the size of the account that they have with the Fed. It’s much more akin to printing money than it is to borrowing.”

To read the complete transcript, see the following link:

http://www.cbsnews.com/stories/2009/03/12/60minutes/main4862191.shtml

Did you catch that phrase about using “..the computer to mark up the size of the account….”? Would that be “marking up” the account “electronically” with invisible “digital blips”? Would that be using finger tips typing on a computer keyboard? Would that be how? Would that be just doing it “digitally”, with “digital promises”, “new bits of code..” identical to the kind of “electronic account” you have “..in a commercial bank”? Please draw your own conclusions.

What do you think will be the reaction of millions of Americans who lost their homes to foreclosure, and a few million more who took out Federal Student Aid loans, IF… and WHEN they find out they lost those homes and are in debt bondage for the “loaning” of “computer blips”, mere bits of computer code that are invisible to the five senses?

If they obtained a mortgage from a mortgage company, that company merely “borrowed” computer blips from a central bank member, who obtained the same computer blips from the central bank. If they “borrowed” computer blips from a bank, same deal. The blips of computer code all originate from the same source: the private central bank. While continually refer to their computer blips as CAPITAL, they are in fact, NOT CAPITAL AT ALL. Long, long ago in a once free Republic ruled by Law and not men, the Supreme Court stated that Original Capital existed in the form of Labor, or Real Wealth Money produced by labor.

Imagine, it only took a few seconds for the central bank or branch member to type the numbers (bits of computer code) onto a bank balance sheet and create a “loan”. And, for those few seconds and a loan of “something” completely invisible, the bank demands you work thirty years to gather up out of the economy and return back to them, AT INTEREST, those digits OR YOU LOOSE YOUR HOME and PAYCHECK! This is debt bondage slavery elevated to a high Art form, that being DIGITAL DEBT BONDAGE SLAVERY!

If you think Americans are angry now, just wait until that revelation comes to the forefront of their minds!

“The paper system being founded on public confidence and having of itself no intrinsic value, it is liable to great and sudden fluctuations, thereby rendering property insecure and the wages of labor unsteady and uncertain. The corporations which create the paper money can not be relied upon to keep the circulating medium uniform in amount.

In times of prosperity, when confidence is high, they are tempted by the prospect of gain or by the influence of those who hope to profit by it, to extend their issues of paper beyond the bounds of discretion and the reasonable demands of business; and when these issues have been pushed on from day to day, until public confidence is at length shaken, then a reaction takes place, and they immediately withdraw the credits they have given, suddenly curtail their issues, and produce an unexpected and ruinous contraction of the circulating medium, which is felt by the whole community.”

Andrew Jackson, Seventh President of the United States

Related posts:

1. Two Titanic Forces Part 1
2. Two Titanic Forces Part 2
3. Pay No Attention To Men Behind The Curtain
4. An Open Letter

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