The Con In Central Bankers' ConfidenceDarryl Robert Schoon
Central bankers are the keepers of the keys to the kingdom. The kingdom, however, is on the edge of bankruptcy and in danger as never before. Comparisons are now being made to the Great Depression of the 1930s. The comparisons, however, are just that. In some ways, the situation is similar. In many ways, it is not. In a very fundamental way, the conditions are much worse. The systemic strains on the global financial system are today much more profound than even during the Great Depression. The Great Depression of the 1930s was unique in the history of capital markets built on debt-based money, sic capitalism. Until the creation of the Federal Reserve System, the US economy had been a savings-based, not debt-based, economy. The difference between the two, although rarely understood, is profound . The price paid for credit-based expansion is debt. Increasing the debt-based money supply increases the amount of debt; and, over the naturally limited life of a debt-based economy, the constantly increasing and compounding levels of debt will grow until the economy collapses. Compounding debt, the wellspring of bankers' profits, will eventually destroy the economy on which it lives. The time it takes to do so is dependent on the strength and productivity of the underlying economy. No economy, however, no matter how strong initially, can out run the constantly compounding debt of credit-based money - not even the United States. THE GREAT DEPRESSION, VERSION 1.0 In 1913, the Federal Reserve System began feeding debt-based money into the previously savings-based US economy; and in just ten years, the newly available cheap credit poured into the stock market and drove shares prices to historic highs. In 1929, the stock market collapsed and the Great Depression began in 1933, only thirty years after the Federal Reserve Act was approved. It was the vast amounts of cheap credit from the Federal Reserve that fueled the meteoric rise of the stock market bubble in the 1920s, a bubble so large its collapse plunged the US and the world into the first Great Depression in the 1930s; and, now, today, the same is again about to happen. The amount of debt that will soon come crashing down will make the Great Depression seem exactly as it is, a prelude to something much larger and much more dangerous - a possible hyperinflationary deflationary collapse that will soon dwarf the merely deflationary collapse of the 1930s. This time around, the Federal Reserve and its government enablers, sic co-conspirators, have created far more leveraged debt than existed during the historic 1920s stock market bubble. The housing bubble of 2002-2006, created in the wake of the 2000 dot.com bubble (remember that?) is the biggest bubble in history and again we will relearn the lesson that the more that goes up, the more will come down. THE GREAT DEPRESSION, VERSION 2.0 Modern economics is a shell game, a 300 year old confidence game designed to hide the fact that bankers' credit replaced real money, credit created out of thin air by private bankers and public government that leaves compounding debt, and ultimately economic destruction, in its wake. Recently, because of the increasing collusion between bankers and government, the line between private banking and public government is gone. They are now one and the same - only the union hasn't been publicly announced because of anticipated opposition to the now consummated marriage. Central bankers are modern day confidence men who have so embedded themselves into the fabric of everyday commerce that people are convinced they need credit in order to survive; like Elvis Presley in his final days believed he needed prescription pills to live. Just as Dr. "Nick", Elvis Presley's pill doctor, is responsible for killing Elvis with his over-prescription of drugs, Dr. Bernanke, the current US credit provider, and his predecessor Dr. Greenspan will be remembered for their fatal over-prescribing of central bank credit to the US and world economy. Too much of a good thing is and has always been in the end, a bad thing. THE ILLUSORY SAFETY OF DENIAL Americans often tell themselves that safeguards are in place that will prevent another Great Depression; and, as we are now on the edge of another such collapse, it would do us well to take another look at those "safeguards" to see how safe we actually are - or aren't. The daisy chain of debt defaults set in motion by the collapse of the 1920s bubble caused 15,000 banks to fail between 1929 and 1933. So in 1933, the US government responded by passing the Glass-Steagall Act to prevent another such collapse. Unfortunately, the Glass-Steagall Act was designed to deal not with the cause (debt-based Federal Reserve bank notes fueling excessive speculation) but with the results (bank failures and loss of savings). Nonetheless, the Glass-Steagall Act of 1933 is the reassurance Americans believe will insure that "it won't happen again". Glass-Steagall prohibited investment banks from again acting as commercial banks. No longer could investment banks (which make speculative bets) own commercial banks (which accept savings deposits from customers) and thereby risk the savings of depositors. But in 1999 Glass-Steagall was repealed. Wikipedia's recounting of the repeal, see http://en.wikipedia.org/wiki/Glass-Steagall_Act is well-worth the read: On November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal was to allow commercial and investment banks to consolidate. Some economists have criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.[6][7] ...One reason banks are losing money is the repeal nine years ago of the 1933 Glass-Steagall Act, which separated commercial and investment banking after excessive risk- taking contributed to the Great Depression . ...The repeal enabled commercial lenders such as Citigroup, the largest U.S. bank by assets, to underwrite and trade instruments such as mortgage-backed securities and collateralized debt obligations and establish so-called structured investment vehicles, or SIVs, that bought those securities. ...Citigroup played a major part in the repeal. Then called Citicorp, the company merged with Travelers Insurance company the year before utilizing loopholes in Glass-Steagall the allowed for temporary exemptions. ...the "finance, insurance and real estate industries together are regularly the largest campaign contributors and biggest spenders on lobbying of all business sectors [in 1999]. They laid out more than $200 million for lobbying in 1998, according to the Center for Responsive Politics..." These industries succeeded in their two decades long effort to repeal the act. In 1999, investment banks, insurance companies, and real estate companies together gave $200 million to US politicians in order to repeal the act specifically designed to prevent another Great Depression; and, now the idea that investment bankers such as US Treasury Secretary Henry Paulson fresh from Goldman Sachs will save America's economy is absurd - for Paulson and his cohorts are not in Washington DC to save America, they are there to profit and save themselves. The $200 million lobbying effort by investment bankers, real estate and insurance companies to repeal Glass-Steagall prevailed but their task is not yet over. Investment bankers via the privately owned Federal Reserve System are now about to complete their control over the entire US financial system. The following is excerpted from Silver, Gold, & The Last American Hero, JFK. Written March 2008, it was true then, it is true today and unfortunately will be true tomorrow.
You need not remember the above predictions. You will remember them soon enough when they occur. Private bankers have controlled the US economy since 1913. Their success has led to our present problems. Their failures will lead to our future problems. But the bankers' work is not yet complete, there are still a few coins on the floor they inadvertently missed and their greed will cause them to bend over to pick them up. Perhaps then they will be vulnerable to the people's will - which brings us to another subject, the peoples' will. THE LAST BUBBLE Sometimes the patrons of strip bars - influenced by alcohol and their own delusions - believe the dancers truly desire them. While at the time it is a pleasant thought (for the patrons), it is not true and does not last, at least not long after the last bill has been stuffed into the stripper's G-string. Self-delusion, however, is not confined to strip clubs although it regularly rises and is paid for there. Self-delusion is far more common than commonly thought as the more widespread the delusion, the less the delusion is apparent to the deluded. America is unique in many ways but in some ways it is representative of other nations and other people. After all, its national character was forged by the many different nationalities that comprise it; and, in that way, it is both unique and reflective of humanity as a whole. It appears to Americans as well as to others that through democracy, the peoples' will determines the nation's destiny. However, this is no more true than the delusion that strippers lust for whom they dance. Delusions, whether private as in the confines of a strip club or collective in the case of nations, are just that, delusions. The repeal of the Glass-Steagall Act by the Gramm-Leach-Bliley Act in 1999 is a case in point. Since 1933, Glass-Steagall has given Americans some measure of protection. Since 1999, however, such feelings of protection have been delusional. The Gramm-Leach-Bliley Act which repealed Glass-Steagall (note: Gramm, Leach, and Bliley were all Republicans) was passed along party lines in the Senate (Republicans for, Democrats against); but it was passed in the House of Representatives with both Republican and Democrat support, and was signed into law by a Democrat, President Bill Clinton. FREE ELECTIONS MEAN NOTHING - WHEN POLITICIANS ARE FREELY BOUGHT AND SOLD The passage of the Gramm-Leach-Bliley Act was either an example of the "hands-across the aisle" sentiment that sometimes causes both parties to join in supporting a common cause; or, it was an example of the far more common "greased-palms of politicians selling out the public good for private gain" syndrome lubricated by $200 million in lobbyists money. Glass-Steagall was designed to protect America from another Great Depression, a time where one in four had been out of work, where 60 % of banks had failed, and where bread lines were as common as family misery. But in 1999 Glass-Steagall was repealed by those elected to represent the peoples' will. The subversion of democracy did not happen overnight or by chance. It was built into the process itself. Alexis de Toqueville in his seminal work, Democracy In America written in the 1830s, believed that America's version of democracy suffered from a fatal flaw, a flaw that derived from the American character itself. De Toqueville observed that Americans had two conflicting desires: (1) The desire to be free, and (2) the desire to be led. It is America's second desire that has now led to the undoing of the first. Irrespective of America's truly revolutionary Declaration of Independence and extraordinary Constitution, America today has become a debased mockery of the founding fathers' original dream and the manifestation of de Toqueville 's dire predictions; and, this November, Americans will again go to the polls to choose "their masters". This is what de Toqueville said of the process:
In 2008, America is now the world's number one jailor. Its prisons hold 25 % of the world's entire prison population and a 2002 Department of Justice ruling allowed Americans to torture prisoners as long as the torturer "in good faith" did not believe permanent harm would result (torture being defined by the US Department of "Justice" as only those "extreme acts" that cause pain similar in intensity to that caused by death or organ failure). This is stark evidence of the devolution of the "rule of law" that has occurred in the United States of America in recent years. Perhaps America has not yet fallen below the level of humanity as de Toqueville predicted. As some might and will argue, it all depends on who sets the bar. Just recently, in June 2008 the US Congress passed a bill submitted by President Bush that allows the US government to spy on Americans and to indemnify those that already have done so, i.e. AT&T and Verizon. Both presidential candidates, John McCain and Barack Obama voted for the bill. IF YOU ASPIRE TO THE SEAT OF POWER - YOU MUST FIRST DROP YOUR DRAWERS I am not saying Americans or others should not vote in elections; but, if they do, they should be cognizant of what they expect will be accomplished. Most Americans still hope their votes once every two or four years will correct the direction this once great nation has taken. They will not. Those candidates who actually challenge the corrupt system which now masquerades as a representative democracy have been marginalized. Ron Paul on the right and Dennis Kucinich on the left represent the best of the two opposing political polarities. Ron Paul's bills to abolish the Federal Reserve System and Dennis Kucinich's bills to impeach President Bush and Vice-President Cheney for crimes against the nation should be heard and subjected to meaningful debate. Neither will occur. Real democracy has now been silenced in our now unreal world. HOPE IS ON THE HORIZON Delusions die hard. But like the patrons in strip clubs, only when the money is gone, does reality return and so in 2008, America may now be on the verge of a reawakening. With gas above $4 a gallon, its credit cards tapped, home foreclosures rising and its telephones increasingly called by bill collectors from India, Americans, like the patrons in the strip club, are realizing their wallets are now empty - the money's now gone, America's last bubble may be about to pop. THE LAST FORUMS FOR LIBERTY I want to extend my deep thanks and gratitude to the sites that publish these writings and the writings of others, writings that draw attention to the crisis that now threatens the US and indeed the world. It is no coincidence that the gold and silver focused websites have become the last forums for liberty. The loss of our freedoms has been accomplished by the collusion of two powerful forces, private bankers and public government. Both those forces, however, are counterfeit. Bankers no more represent real money than governments today represent those they govern; and the power of both derives from the false money that has fueled the ambitions of each. When bankers and government first colluded in England in 1694, they replaced gold and silver with government counterfeit coupons and the world has not been the same since. It is little wonder that over the years, bankers have become more and more wealthy, governments have become more and more powerful, and we, the citizenry, have become more and more impoverished and indebted to bankers and enslaved to government. It was on the internet, on gold and silver- focused websites where I first encountered the writings of others who knew well before I of the dangers unseen by those who could not then see. Because of them and because of the websites that posted their writings, I have gained some understanding and insight into the critical issues that now confront us. Professor Antal E. Fekete, see www.professorfekete.com, was one of those writers. When I first read his articles, I didn't understand the value of a gold standard which the professor adamantly espoused. I didn't understand that the true value of a gold standard - apart from valuing gold and silver as real money - lay in its natural bounds on the powers of government, bounds against which governments attempt to override. Mao Zedong once proclaimed that political power comes out of the barrel of a gun. While that may be true, it is only partially true; for here in the West, since 1694, political power has increasingly come from the issuance of debt-based fiat money from central banks, money that can corrupt all who benefit from its false issuance e.g. politicians, academics, regulators, corporate officers, the military, etc. Buckminster Fuller was fond of calling our planet, Spaceship Earth. It's a good name but it might do us well to note that, of late, our Spaceship Earth has become a bit wobbly. The icecap on the North Pole has now melted, geophysical calamities are on the rise, gold and silver have been replaced by pieces of paper, and those who purport to speak in defense of justice, liberty and democracy are lying through their teeth. Welcome to 2008. 2009 comes next. 2010 comes after that. Note: Session V of Professor Fekete's Gold Standard University Live (GSUL) will held November 11th through the 14th at Australian National University in Canberra, Australia. It may be the last time GSUL is offered in its present form. The opportunities to hear a thinker of Professor Fekete's stature and intellect are rare and priceless. I will be delivering a talk during the session. Inquiries can be addressed to Philip Barton at feketeaustralia@yahoo.com. blog: http://www.posdev.net/pdn/index.php?option=com_myblog&blogger=drs&Itemid=81 Darryl Robert Schoon
In college, I majored in political science with a focus on East Asia (B.A. University of California at Davis, 1966). My in-depth study of economics did not occur until much later. In the 1990s, I became curious about the Great Depression and in the course of my study, I realized that most of my preconceptions about money and the economy were just that - preconceptions. I, like most others, did not really understand the nature of money and the economy. Now, I have some insights and answers about these critical matters. In October 2005, Marshall Thurber, a close friend from law school convened The Positive Deviant Network (the PDN), a group of individuals whom Marshall believed to be "out-of-the-box" thinkers and I was asked to join. The PDN became a major catalyst in my writings on economic issues. When I discovered others in the PDN shared my concerns about the US economy, I began writing down my thoughts. In March 2007 I presented my findings to the Positive Deviant Network in the form of an in-depth 148- page analysis, "How to Survive the Crisis and Prosper In The Process." The reception to my presentation, though controversial, generated a significant amount of interest; and in May 2007, "How To Survive The Crisis And Prosper In The Process" was made available at www.survivethecrisis.com and I began writing articles on economic issues. The interest in the book and my writings has been gratifying. During its first two months, www.survivethecrisis.com was accessed by over 10,000 viewers from 93 countries. Clearly, we had struck a chord and www.drschoon.com, has been created to address this interest. 321gold Ltd
Silver, Gold & The Last American Hero JFKDarryl Robert Schoon
wordnet.princeton.edu/perl/webwn Like everything in our past, the late American president, John Fitzgerald Kennedy, exists as a memory. Struck down by an assassin in a decade where bullets - democracy's deadly equalizer - quieted those brave enough to champion change, e.g. JFK, Martin Luther King and Robert Kennedy, President John Fitzgerald Kennedy was a true American hero; and heroes, while a champion to many are, by definition, a threat to some. In How To Survive The Crisis And Prosper In The Process I detailed how America's problems after 1950 mirrored England's descent from power one century before. America's problems did not go unnoticed by those who then led the US, Presidents Dwight D. Eisenhower and his successor, John F. Kennedy. The reaction of each, however, is a chilling reminder of the dangers facing those who rule. President Dwight D. Eisenhower was Supreme Commander of the Allied Forces that defeated the fascist powers in World War II; and, as a war hero, he was believed to be an ideal candidate for the Republican Party in the 1952 presidential elections. Eisenhower was elected but while serving as president, Eisenhower clearly saw the forces that would someday be responsible for America's loss of power; for it was during Eisenhower's presidency that the erosion of America's economic wealth began. Prior to Eisenhower's presidency in 1952, the US was the wealthiest nation in the world. As the largest industrial power, the US enjoyed a positive balance of trade with its partners. Before Eisenhower assumed office, the US had gold reserves totaling almost 22,000 tons, the most gold any nation had ever possessed. When Eisenhower left office, however, it is uncertain how much gold remained; because after 1954, the US never allowed a public audit of its gold reserves. As the US then sold more goods abroad than it bought, US gold reserves should have increased. Instead, they declined. In one year alone, 1958, US gold reserves were reduced by 10 %. The powerful forces that controlled America were spending so much of America's wealth on overseas military and corporate expansion that gold was flowing out faster than trade could bring it in. Indeed, the profligate spending responsible for America's loss of gold and consequent debt began during Eisenhower's presidency. I place economy among the first and most important republican virtues, and public debt as the greatest of the dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt. Only days before leaving office, in his Farewell Speech Eisenhower named those he believed responsible for the policies that would someday endanger America's liberties and render this once wealthy nation financially insolvent. In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. ...We cannot mortgage the material assets of our grandchildren without risking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow. Less than fifty years after Eisenhower uttered those prophetic words, America's patrimony is gone and its future mortgaged beyond its ability to repay. His words were heard but not heeded - not then or since. It cannot be said that America wasn't warned. It can and will be said that America didn't listen. WHO RULES AMERICA It is no coincidence that Eisenhower waited until three days before leaving office to warn America about the US military-industrial complex. A military man himself, Eisenhower felt it necessary to warn the country of the unwarranted influence and intrusion of military and industrial [sic business] interests that were then colluding to hijack the future liberties and prosperity of America. Eisenhower's warnings were not conclusions he had reached just before his presidency ended. They were conclusions Eisenhower had reached during his eight years as president, years spent observing how the business of government was conducted and who profited by its activities. Eisenhower knew that even as President of the US, he did not possess the requisite power to openly oppose the powerful interests that were even then spending the US into insolvency. So President Eisenhower waited until the very end of his last term to warn America of the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. Eisenhower was right not to openly challenge the military-industrial complex. The man who succeeded Eisenhower as president, John F. Kennedy, did. But those who wield the real power behind the government's facade of democratic fair and equal rule were not to be trifled with then. They are not to be trifled with now. REAL RULERS REAL POLOTIK The real rulers in Washington are invisible, and exercise power from behind the scenes. US President Woodrow Wilson also spoke of the real rulers in Washington DC decades before Eisenhower and Kennedy were to encounter them. In his preface to The New Freedom: A Call For The Emancipation Of The Generous Energies Of A People, Wilson wrote: Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it. These are not words of an imprudent man. They are the words of a US President who cared enough about his country to warn of the dangers lurking behind its illusory façade of law, liberty, justice and equality for all. Dangers of which Americans were unaware of then - and of which the vast majority are still unaware of now. EXECUTIVE ORDER 11110
AND THE FEDERAL RESERVE BANK John F. Kennedy was not to live out his first term as President. Three years into his presidency, JFK was felled by an assassin's bullet in Dallas, Texas. While there is much controversy surrounding his death, it is clear that whatever the theory, it was no accident. The assassination of a standing president is not undertaken lightly. The public killing of a highly popular political figure such as JFK is decided upon and agreed to only when sufficient amounts of money or power are at stake. Previous theories have revolved around issues of power. Dissident and/or dissatisfied rogue CIA agents and/or right-wing Washington DC power brokers and/or the mafia conspiring separately or together in a mutual hatred for the upstart Kennedy have been the favored theories. Another, simpler theory, however, should also be considered - money. On June 4, 1963, Executive Order 11110 was signed by President Kennedy directing the US Treasury to issue a new US currency. This new US currency was to be backed by a precious metal - silver, unlike the credit-backed money issued by the Federal Reserve since 1913.
By the stroke of a pen, President Kennedy's signing of Executive Order 11110 returned the power to issue currency back to the US Treasury thereby ending the fifty year monopoly of private bankers and the Federal Reserve Bank over US currency. Six months later, President John F. Kennedy was shot and killed. In 1913, as a result of intense lobbying by business and banking interests, the US government had turned over the power to issue US currency to a group of private bankers - the Federal Reserve Bank. Many believe this transfer was unconstitutional. US presidential candidate and Congressman Ron Paul (ranking member of the House Subcommittee on Domestic Monetary Policy) has stated: The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy. The power to coin money and regulate the value of the currency is among the most important responsibilities and functions of government. That the US government in 1913 turned over this public function to a group of private bankers is astounding. As a consequence, almost one hundred [years] later, the US and its citizens are now on the edge of bankruptcy, indebted up to their eyeballs to the very bankers they gave the power to coin their money and regulate their currency, private bankers who are even now being bailed out by America taxpayers with money made available to them by their fellow-bankers at the Federal Reserve. HELLO AMERICA, ARE YOU THERE? CAN YOU HEAR? ARE YOU EVEN LISTENING? THE PUBLIC PURSE For almost one hundred years in America, private bankers through the Federal Reserve Bank have had a monopoly on the printing and issuance of US currency. In that time they have inflated the US money supply to such a degree the US dollar has lost 95 % of its purchasing power and again brought the nation to the edge of economic ruin. In 1963, fifty years after the Fed acquired the right to print, issue and inflate the money supply of the US, President John F. Kennedy quietly transferred that power back to the US Treasury, the only institution which the constitution had granted the power to coin and regulate currency. Rest assured that transference did not go unnoticed by the private bankers and the Fed. US Presidential candidate Ron Paul has introduced legislation during each Congress to abolish the Fed (H.R. 2755 - 110th Congress, H.R. 2778 - 108th Congress, H.R. 5356 - 107th Congress, H.R. 1148 - 106th Congress). His inability to attract congressional support, however, is in all likelihood his Washington DC life insurance policy. Morto uomini non causano problemi, [sic it. Dead men don't cause problems]. ...we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. These twelve private credit monopolies were deceitfully and disloyally foisted upon this country by the bankers who came here from Europe and repaid us for our hospitality by undermining our American institutions...The people have a valid claim against the Federal Reserve Board and the Federal Reserve banks. Congressman Louis T. McFadden, Chairman of the House Committee on Banking and Currency from 1920-31
THE FOX IS IN THE HENHOUSE After the recent collapse of Bear Stearns, the Fed announced that US funds will now be made available to international investment banks. Previous to this announcement, any loaning of US funds to investment banks was prohibited. On March 28th, the first day the funds were available, the Fed loaned the banks $75 billion dollars. These investment banks, called primary-dealers, are the inner circle of the Fed's funding mechanism. That these primary-dealers are in need of US support is an indication of the rapidly disintegrating state of their balance sheets - and the lengths the Fed will go to protect their fellow bankers in the private sector with public money.. LIST OF BANKS ELIGIBLE FOR THE FED
The bailout of the richest investment banks in the world by US taxpayers is tantamount to a kidnap victim being forced to defray their kidnappers' expenses. Someday, however, these bail-outs by the Fed will come to an end, but that end will not be pretty - for the end of central banking will be both unprecedented and brutal. Central banks and investment banks are two sides of the same coin; and, now that the coin has been debased and recast with subprime securities and other suspect forms of debt; investment banks and their enablers, the central banks, are as vulnerable as those they once exploited. Their increased vulnerability will soon be triggered by any number of events, e.g. bank insolvencies, collapsing currencies, slowing economies, money-market failures, counter-party derivative defaults etc., each one powerful enough to bring down a faltering house of cards built on a foundation of rapidly shifting sand. PUBLIC PROBLEMS PRIVATE SOLUTIONS It might be argued that the Federal Reserve is itself a private solution to a public problem. Indeed, such might be argued and in fact, it is true. The Federal Reserve Act is the most important act of privatization that happened in the US. It is also the worst. This does not mean all private acts should be subsumed to public policy. Indeed, the opposite is true. Today, individual action is needed more than ever. Only by such action can the future be saved but it can be saved only after the present American economy collapses, a collapse set in motion by the military-industrial complex and private bankers, a collapse that can no longer be avoided. WE HAVE GONE TOO FAR The US military-industrial complex is still too powerful to confront and/or stop. With the bankers, they are responsible for America's increasingly insolvable problems, their self-interests blinding them to what they have done to the nation. Eisenhower couldn't stop them, neither could Kennedy nor can Ron Paul. Only they can stop themselves and this they will soon do; albeit inadvertently as the foundation of their power, the US economy, succumbs to the damage they have inflicted upon it. THE ARK OF GOLD & SILVER If we invest in gold and silver - the anathema of private bankers, we can survive the crisis they caused. The economic carnage set in motion by government's pact with private bankers will affect everyone - workers, savers, entrepreneurs, investors, pensioners, the helpless, as well the innocent and the guilty. Yes, bankers, too, will lose at least some of their wealth, if not all. Everyone everywhere will be affected by the collapse of credit-based central banking. The economic landscape is already shifting as global credit markets implode. Bankers - the parasites of commerce and productivity - are now victims of their own excessive greed. Their demise will affect us all. The torrent of collapsing debt accumulated and compounded since the beginning of central banking is about to be unleashed on an unsuspecting world. All beginnings have endings. So, too, does debt-based central banking. THE FEDERAL RESERVE'S WAR ON GOLD The Fed's war on gold is not without reason - their reason, not ours. Ever since those in control of the US overspent America's gold in the pursuit of military power and corporate expansion, the US paper dollar has been just that, a paper dollar exposed and vulnerable to the more obvious value of gold to which it was once convertible. This is the reason the Fed and central banks have fought the rise of the price of gold since the US reneged on its gold obligations in the 1970s. The rising price of gold belies the Achilles heel of central banking, built on a foundation of debt-based paper money worth no more than the debts issued to produce it, debts that are no longer capable of being repaid. The Swiss central bank sold 22 tons of its gold last fall as the price of gold raced towards the $1,000 per ounce mark. Without the intervention of the Swiss central bank, the price of gold would have passed $1,000 last year as easily as a Ferrari passes an elephant or an ass. Buy as much gold as you can as long as central banks are selling it. It is our gold, after all, that they are selling. For when the flight from paper assets begins in earnest, there will be no gold for sale, at any price; and silver will do very well, as well. BELIEF, HOPE, & REALITY Elie Wiesel tells the story about the Jews who entered the boxcars going to the Nazi death camps told by their rabbis that God would never allow his chosen people to be destroyed. Today, our governments and leaders are reassuring us that our pensions and investments are safe, that they have the tools and resources needed to protect us from the economic chaos threatening our financial futures, that there is no reason to panic. My advice: Buy gold and silver. Don't get in the boxcar. Note: I want to thank the reader who sent me the image of the Kennedy silver-backed five dollar bill and reminded me of Executive Order 11110 . I lost the email message and image. I, however, did not lose its significance. Darryl Robert Schoon
In college, I majored in political science with a focus on East Asia (B.A. University of California at Davis, 1966). My in-depth study of economics did not occur until much later. In the 1990s, I became curious about the Great Depression and in the course of my study, I realized that most of my preconceptions about money and the economy were just that - preconceptions. I, like most others, did not really understand the nature of money and the economy. Now, I have some insights and answers about these critical matters. In October 2005, Marshall Thurber, a close friend from law school convened The Positive Deviant Network (the PDN), a group of individuals whom Marshall believed to be "out-of-the-box" thinkers and I was asked to join. The PDN became a major catalyst in my writings on economic issues. When I discovered others in the PDN shared my concerns about the US economy, I began writing down my thoughts. In March 2007 I presented my findings to the Positive Deviant Network in the form of an in-depth 148- page analysis, "How to Survive the Crisis and Prosper In The Process." The reception to my presentation, though controversial, generated a significant amount of interest; and in May 2007, "How To Survive The Crisis And Prosper In The Process" was made available at www.survivethecrisis.com and I began writing articles on economic issues. The interest in the book and my writings has been gratifying. During its first two months, www.survivethecrisis.com was accessed by over 10,000 viewers from 93 countries. Clearly, we had struck a chord and www.drschoon.com, has been created to address this interest. 321gold Ltd
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About Darryl Robert Schoon
About Darryl Robert Schoon