MY PROPHECY - The Federal Reserve Will End! A Money Matrix Addendum
Many of the Prophecies of Ferdinand Lips from 2005 are becoming true. "Right now [the FED] is creating the biggest housing bubble in history. This may lead to economic collapse. I expect that a revolution will one day take place against the Fed. It must be abolished. After all, its founders were not that intelligent but rather stupid men. Or they were devils. It is a tragedy. Not only that: It is the biggest tragedy in world history, even worse than wars. Yes, worse than wars. It made most people poor. It damaged America. It caused wars and then helped to finance them." by Jake Towne, the Champion of the Constitution
(libertarian)
Wednesday, October 29, 2008
After long discussions with my Chinese friends (I live in Asia) the past few months, I have unleashed more than a few more newly minted gold buyers upon the gold market. I figured I should try to be patriotic and try to do the same (again) for my countrymen. Let me share an important note I stumbled upon earlier this year with you all. (Estimated reading time 10 minutes.) While all his prophecies did not come true, enough of them have to make it a worthwhile read. At the time I first read it, I thought the writer, Swiss gold banker Ferdinand Lips was a bit daft. How could a yellow metal solve so much of the world’s ills?
However, in my Money Matrix series (which I will someday complete, but a few notes of encouragement would be nice!), I speak in the Prelude of striking evil at the root, to attack the Disease, of which the Wars of Terror, the Financial Crisis, even the recent beatings of our Iraq veterans at the final McBama presidential debate, are all just mere Symptoms. I encourage the reader to start educating themselves in disease prevention, and as fast as possible. Sources and links are at the bottom.
What is this Disease? The disease is that We the People have forgotten the very definition of money. We have lost our moral compass, and we need to claw our way back to it, or our wealth as a nation will be completely plundered and lost. The rEVOLution is being fought to Restore the Republic, and our most critical battle is a monetary revolution. A Revolution for a Dawn of Honest Money.
It still seems that few understand this new future is critical. For instance, look at the 25% drop recently in the Euro/Dollar ratio. Look at the Indian rupee, Iceland's krona, and British pound crashes. Look at the sudden rise of the Japanese yen and the US dollar. How are you supposed to plan for and run a business this way? These are the final fibrillations of a monetary system in its death throes. It is also likely these chains will be renewed again, but we will eventually come back to the same point. However, I tell you, life does not have to be this way.
As for me, I will have my Life with my version of Liberty or I will have my Death. Those are the only two fates I can accept since all that lies in between are the barrens of Slavery.
Excerpt from Remarks by Ferdinand Lips spoken by JP Schumacher at the Gold Rush 21 Conference Dawson City, Yukon Territory, Canada. August 8, 2005
[Note: Mr. Lips would die less than 2 months afterwards this speech was delivered.] (Photo) (2)
"...Because the world has forgotten the monetary role of gold, our world is in serious trouble. That is the one major reason for the worrisome state of the world. The abandonment of gold as money, of the discipline of gold, is the major reason if not the only reason why our world has become a very dangerous place. In my opinion, it is the biggest tragedy in world history...
Some years ago I heard that the Mayan calendar will end on the 23rd of December 2012. There is no more Mayan calendar afterwards. That is only about seven years away.
The Mayans were a people of great culture and they loved gold. They have to be taken seriously.
What could that mean? What is going to happen? Is it the end of the world?
No, it can’t be that. We hope not. However, we are facing an economic situation that could easily end in a debacle of epic proportions.
Will there be another world war? Well, that is quite possible. There are so many wars already. In the 20th century there have been two world wars, thousands of smaller wars, even gold wars and currency wars. They would never have happened under a gold standard. Impossible.
What else could it be, then? I have come to several conclusions. Conclusions usually come at the end of a speech. But I won’t keep you waiting.
George Bernard Shaw said: "It’s difficult to make forecasts, especially about the future." But I will try anyway. I’ll tell you my conclusions right now.
First conclusion: There will be no more Federal Reserve. Yes, there will be no more Fed. Believe me.
It may come as a surprise to some of you to hear that the Federal Reserve System is already America’s fourth central bank. There were three others before that and the result was always the same -- a disaster. We have had nearly a hundred years of the Fed and that is enough.
Why? Because this organization has tragically failed. It was set up to keep the dollar strong and the financial system sound. It was founded by powerful and supposedly very intelligent men. Within a hundred years they have succeeded in running the dollar down to 5 percent of its 1913 value. Maybe even below that.
The Fed has created stock market bubbles. Right now it is creating the biggest housing bubble in history. This may lead to economic collapse.
I expect that a revolution will one day take place against the Fed. It must be abolished. After all, its founders were not that intelligent but rather stupid men. Or they were devils. It is a tragedy. Not only that: It is the biggest tragedy in world history, even worse than wars. Yes, worse than wars. It made most people poor. It damaged America. It caused wars and then helped to finance them.
Second conclusion: Most other central banks will go too. The central banks invented this terrible monster of "the lender of last resort," which allows irresponsible banks and the wealthy financial folk to speculate without real risk of their own. It led to an incredible buildup of financial leverage. And at the end it leaves ordinary people holding the bag.
None of this would occur if we had an honest monetary structure. We don’t need central banks. The once mighty Bundesbank, the bank that ruled Europe, has already lost all its power. All central banks must and will be abolished.
Why? Because they were so stupid and fraudulently sold their citizens’ gold and bought paper money instead, mostly US dollars. You know -- those dollars that lost 95 percent of their value over 100 years.
Yes, there is now the euro. But is that currency cocktail any better? Somebody called it the Esperanto currency, meaning the hopeful currency. Before the creation of the euro all the central banks of the world held all their monetary reserves in U.S. dollars, a currency backed by nothing. After the dollar crashed in recent years, they shifted their paper dollars into euros. How clever -- they sold gold at the bottom and then they sold dollars at the bottom.
I hope all is not lost. I suspect that some central bankers are beginning to find out that gold is the only real money -- the only alternative to worthless paper money reserves.
Third conclusion: The United States will have Latin American conditions but without Latin charm.
I am extremely worried about the future of the United States. Its manufacturing industry is dying. The United States is bleeding to death with these endless wars. As far as I know, America has no enemies from outside that threaten it. In my view, the enemy comes from inside. The United States will face economic collapse and destruction of its currency. But people are not informed about what is going on. I also hear that U.S. citizens are losing their freedom. That is, of course, the consequence.
Americans should remember their heritage. They should remember the principles of their founding fathers. These wonderful men created a great and successful country that was admired by the whole world. This is all gone. The leaders of the U.S. government are thinking only about teaching everybody what democracy is. The leaders of the U.S. government want to rule a world they don’t understand. They want to manage the markets they no longer dominate and then go to war when nothing helps.
Fourth conclusion: China will probably become the biggest economy in the world.
China has a long history. The timeless value of the wisdom of a Confucius, almost 3,000 years old, is again remembered. Believe me, this is far superior to Disneyland. China will become the most important country. China will have a great future as long as it can master the speed at which it is changing and growing. That will be difficult.
China’s economic progress creates not only wealth but also tensions. It should not be built on the American consumer, who consumes that much only because he thinks the housing boom makes him rich. So China and the other Asian countries will one day need to have their own integrated markets. They will no longer depend so heavily on an American consumer drowning in debt.
If political tensions become too tense, the country could split up in three Chinas. It has happened before. That would not be too bad. Smaller countries can be better managed. In the case of China, these three countries would still be big enough.
Fifth conclusion: India will get wealthier and more successful. But I wonder if a country is really successful if it has that many poor people. Most important insight: In spite of all the forecasts, India will buy more and more gold. The Indians will never change. They have lots of history and experience with paper money.
In the Middle Ages there was a "silk road" going from Turkey to Kazakhstan. Now we are seeing the building of the "gold road." It starts in Dubai. Dubai is building the biggest gold refineries in the world. They buy and refine the gold that flows over the "gold road" to India and all of Asia.
Sixth conclusion: Russia could become the greatest power. Russia may have the biggest gold reserves. In 1917 under the tsar the Bank of Russia had the biggest gold stock of all central banks, including the Bank of England. Russia has many well-educated, hard-working, and decent people. They just need to abolish their enormous bureaucracy, forget their Marxist nightmare, and learn the principles of a free-market economy. Russia is a fabulously rich country with enormous resources, a lot of good people, and a lot of culture.
Seventh conclusion: Together with Russia, Europe could again be the center of the world. But this is far from sure. It can be achieved only if we drop socialism and the welfare state. We should learn from the Chinese. Hard work and little welfare state.
But in order to succeed, the euro needs a link to gold. The miracle can be accomplished only if Europeans replace Keynes with the thinking of men like Röpke, von Mises, von Hayek, et al. Röpke, Eucken, and Erhard were the fathers of the German miracle. These policies could again be the source of a European miracle. The European Union of Brussels, the European Union in its present form, should be abolished.
The EU in its present form will fail and maybe the euro will fail as well. That would not be the end of Europe. As General Charles de Gaulle recommended, the ideal would be the Europe of the Nations, a Europe where the individuality of every nation and region is respected. A Europe from the Atlantic to the Urals.
Eighth conclusion: Gold and Silver prices will be much, much higher. Oil prices too. There is not enough gold. Who wants to produce gold and silver as long as prices are held artificially low? This whole manipulation of the gold market has to end. It will end like the London Gold Pool in 1968. Just collapse. The gold pool was created in 1960 by the central banks to keep the price of gold at $35. It could not last. Gold was stronger than the central banks. And gold will also be stronger than the hedge fund boys who are criminally borrowing and shorting stocks of small gold-rich exploration companies just to bring them to their knees.
Only this time the explosion of prices will be more spectacular. The prices will go to the moon. And the manipulators will be hit by a real boomerang. Also, the central banks will start buying in 2006. Nobody will be able to stop that future gold rush. Gold will take its revenge.
Ninth conclusion: If the price of gold and silver were left to free-market forces, nearly everybody would benefit. South America. Most countries of Africa. South Africa would benefit most. Even the United States would greatly benefit because it is the No. 3 producer of gold. There could be a renaissance of mining generally, with all the beneficial effects on national economies.
Tenth conclusion: My most important forecast is the following: I forecast a return to the gold standard. Without a return to the gold standard, you can forget it. I repeat: Forget everything. Then the calendar of the Mayans and their wisdom will have proved to be greater than that of Nostradamus.
If we go back to the gold standard I could see the best scenario for the future of mankind. Everybody would benefit from sound money. The United States again could become a great economic power and nation. Gold-rich Asia may benefit most. The world economy would run on its full potential. There would be full employment everywhere. The young could again find jobs. Peace would return to the world…
…If we want to change the monetary non-system, then we must have a plan. We need a plan to inform people about sound money. For a century people have been brainwashed that gold is finished and fiat paper money will rule. The politicians are full of lies and the media is full of lies. There is not one university in the world where monetary history and science are taught.
From history we know how fiat money systems end. Look at the American Continental and the John Law experiment. They all finished badly. The present paper money experiment is even worse. It's the worst because it is worldwide. For the first time in history all the currencies of the world are backed by nothing. It is the worst system ever invented. It is the Tower of Babel of irredeemable money.
Let me cite Professor Antal Fekete from my book "Gold Wars." Fekete said:
"This book is much more than a chronicle of gold wars. It is also an account of the historic failure of 'Esperanto money.' Over a hundred years ago a Polish physician by the name of Ludovik Lazarus Zamenhof (1859-1917) created a synthetic language in the hope of removing the curse of Babel from mankind. According to the Bible, man had become so conceited as to challenge God by proposing to build a tower that was to reach high heaven. The tower could never be completed because of failures of communication due to the confusion of different languages. Zamenhof called his new language 'Esperanto,' meaning 'the hopeful.' However, the hope was in vain as other synthetic languages, such as 'Ido,' sprang up. The confusion of tongues and the curse of Babel have remained."
Calling irredeemable currency "Esperanto money" is apt. The Biblical story may be interpreted allegorically as an admonition not to challenge God by attempting to build a tower of irredeemable debt that is to reach high heaven. But the admonition fell upon deaf ears. Now God's wrath is upon us.
Currencies of nations have been confused. The tower of Babel is in vain. Other synthetic currencies spring up such as the Special Drawing Right, the euro, and so on. The confusion of currencies, and the curse of Babel, remain.
How could this tower of irredeemable money come into existence? Because there is no gold standard. Because people do not know what money is, what sound money is and means. The lessons of history are forgotten. In the 19th century every peasant knew what money is. So you have to educate people again…
…Conquer the fiat money non-system with knowledge, just as Christendom conquered the pagan Roman Empire. Conquer it with gold. If we do this, then by the 23rd of December 2012 a new golden Mayan calendar will be born and the world will experience a renaissance and prosperity for all.
But if we don't do it, the calendar of the Mayans will have truly been prophetic. We will face global economic collapse and believe me -- the end of the world as we know it.
[To read the article in its entirety, go here or watch this video. Part1Part2Part3]
America, Were Michael Phelps' Eight Olympic Gold Medals Worth Winning? Published: August 24, 2008 Michael Phelps and other American athletes are bringing back loads of Gold, Silver, and Bronze Medals from the Beijing Olympics. A young libertarian economist asks if it was worth it.
The Money Matrix - Prelude (PART 1/15) Published: August 1, 2008 Prelude and Source List to a Series on Global Monetary Policy of Control and Explaining Big Government's Finances
Save Ron Paul's Voice - A Money Matrix Addendum Published: September 28, 2008 Learn how by reading. Article is intended as a poke-in-the-eye for members of the Ron Paul Revolution who complain about the bailouts and the financial, banking, and housing crises and do not realize that they may in fact be hypocrites.
GO GATA! The premise of the Gold Anti-Trust Action Committee that the world gold market is artificially suppressed by central banks in order to make their currencies look stronger.
www.GoldMoney.com - See my comments above, GoldMoney is an international gold and silver warehouse with insured vaults in London and Zurich. Ability to hold and pay interest on four major fiat currencies, issue payments in goldgrams, etc. Again, I trust them as an alternative way to diversify where and how my physical metal is stored, but I urge you to be wary and thoroughly investigate this and ANY method where someone else holds your metal for you before investing. The best is always physical possession although you should always be creative with your storage locations :)
The World Gold Council - A wealth of information on central bank holding, gold derivatives, supply and demand statistics and more. Free login required.
Rothbard, Murray N. "What has the Government Done with Our Money?" (1990) A 50-page document that describes Austrian economics. This is the critical key to everything in this series. Rothbard has written a host of other great sources as well, like the 1994 work "The Case Against the Fed."
www.jsmineset.com Expert Jim Sinclair shares his thoughts on gold investing, financial markets, and trading. For free!
www.DollarCollapse.com This site's main use is as a newsfeed for dollar, gold, and housing market current events. They explain their dollar collapse theory here, which I partly agree with.
www.SilverSeek.com I particularly enjoy reading the columns of Theodore Butler and Jason Hommel
www.GoldSeek.com The sister site of SilverSeek. The Mogambu Guru's (aka Richard Daughty) column has tunnel vision but hilarious and educational..
www.lemetropolecafe.com Offers timely gold market advice and a daily "Midas" column. Try the 2-week free trial.
Paul, Ron. "Pillars of Prosperity." (2008) A 400+ page compilation of Dr. Paul's writings. After reading these, one realizes that Dr. Paul did very little recent work in putting together his best-selling "The Revolution" as most of this book was written 20+ years ago.
Terrorist Completes Ultramarathon! And Gold Hits New Highs! Published: October 19, 2008 Starting in Kuala Lampur in the morning, and finishing in Shanghai at night, some dude manages to finish his first-ever multiple-country ultramarathon and shares his thoughts on the financial crisis and gold.
FDIC Gives Alpha Bank the Axe! Published: October 27, 2008 "When the people find that they can vote themselves money, that will herald the end of the republic." - Ben Franklin. Is everyone prepared for Guy Fawkes Day and Halloween?
Henry Paulson - A Quick Look at the Man Published: September 27, 2008 Everyone in the country is talking about the Paulson Plan, wherein one clause would make Paulson de-facto financial dictator of the United States, accountable to no one. The article is a summary of my brief investigation and asks for help in finding out WHO IS THIS GUY?
Fight the Gestapo Tactics of our Congress, McBama, and Bush with Ron Paul and I Published: October 3, 2008 A plea to readers on the passing of the Paulson Plan, Ron Paul's Congressional statement today, my recommended actions to take, and in support of BJ Lawson for Congress. Just updated with a link to and discussion on the 442-page bailout!
US Treasury Seizes Fannie Mae and Freddie Mac! And What It Means Published: September 8, 2008 "You poor kid, there have been centuries of philosophers plotting to turn the world into just that - to destroy people's minds by making them believe that that's what they are seeing. But you don't have to accept it. You don't have to see through the eyes of others, hold on to yours, stand on your own judgment, you know what that is, IS - say it aloud, like the holiest of prayers, and don't let anyone tell you otherwise." - Ayn Rand
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do not represent the views of Nolan Chart, LLC or its affiliates.
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Ha! Ha! Ha! Ha! Atta boy, Jake. You really make a LOT of sense in this article. Your conclusions are about as probable as more than one or two people reading even HALF of this jibberish.
Keep it up. You're filling up valuable internet space!
The FED is currently playing an end-game, their own end-game. With the amount of fiat currency being placed into circulation over the last year, by the end of next year to the beginning of 2012 we shall see just how its monetary policy has effected the inflationary push this economy. If estimates of triple digit injections of liquidity are true, based upon the trickle of FED information, then we should begin to see high double digit inflation leading into a hyperinflationary event. A hyperinflationary event will effectively kill the FED.
Of course, it has already suffered greatly from a loss of confidence this year, even by those who once lauded its abilities, this will increase and without such confidence its days will be numbered.
As I have said before, every single society which has placed its entire economic dependence upon a total fiat monetary system is always eventually forced to return to Sound Money. Ours will be no different.
I'm with Master C. The Titanic is too big to sink. Why , I can still hear the band playing. Jeeves, I'll have some iceberg ice in my Jack and kool-aid, thank you.
Master C...are you sure you are not under the age of 15? You comments betray a juvenile mindset...
Concerning the FED, it will not survive a hyperinflationary event and, as stated, if the estimates of over a 300% monetary injection within the last year is even close to being true....then I would prepare myself if I were you Master C.
Posted By: Daniel Penisten
Date: 2008-12-05 17:06:52
You will have a ball ripping in to this one.
Humanity Honor Dollars
Defeating Poverty With Some Good Ideas.
It used to be printed out on the basis of what was in a nation’s treasury. They called it the "Gold Note" or the "Silver Note" and these symbols of wealth were the standard by which dollars were produced and released into society.
Then came the day when the American Government, (the Fed and the Bankers through their servants the politicians), decided that these wealth standards were not plentiful enough in relation to the population numbers of the people and the volume of wealth flow. Then they took another look at the idea that a unit of currency has to be backed by a finite symbol of wealth. The Gold and Silver Dollar production was terminated and "Promissory Notes" were issued. Dollars became a document that was backed by the United States Treasury as a guarantor and this bureau promised that it was "legal tender" in all monetary transactions. In short, the dollar of today is good for spending, investing and saving because the Treasury department says so.
But have you ever wondered why there is still not enough money to go around? Wages held below the "Poverty Level"? Why, despite the authority and ability to print as much money and distribute it, the treasury department limits the amount to the effect that there is still poverty in this country? Are they keeping it relatively scarce so that it keeps a certain value? Are they making decisions with the immoral assumption that something has to be scarce or rare to be of value? Of course, I mean "immoral" if the scarcity is intentionally caused by Human manipulation.
These questions lead me to a more fundamental one. Why do Human beings value something more when it is less than other things? This mindset is natural, I suppose, for gold, gemstones and art treasures, but isn’t it unintelligent to apply this rarity valuing to the life needs of millions of people? Rarities have their world and Life has its world. One should not effect the other, to the extent that People die.
Why don’t we give the rarities their due and still make sure that Humans have plenty for their life needs? Instead of using a rarity value influence on monetary availability for the populace, why don’t we place an entirely different mindset to money. A mindset that enables there to be plenty of dollars made available to people. Enough to wipe out poverty and give everyone a higher standard of living. Poverty should not be an automatic punishment for being part of a lower social class. The bottom line of any society should be an adequate standard and average of comfort and security…that is above not enough to eat, inadequate shelter and poor medical care.
We could easily decide to set a new monetary standard that would be the foundation of a new distribution through a "National Earned Guaranteed Income" that provides a relatively high level of financial security for everyone who responsibly participates in the maintenance of their society within a certain degree of achievement.
This new money would be permitted and established as law by "The American People’s Plebiscite" and then printed with Treasury, (not the Fed), sanction in enough quantities to pay the National Earned Guaranteed Income to all citizens who have fulfilled the new mandates of good citizenship. This income would prevent any "worthy" individual from dropping into the despair realm of poverty which does no good for a nation. This income would establish a fair platform for an individual citizen to build on in their life’s quest for personal fulfillment. From this socially protected level one could become More and Better and even enter the "higher" gold wealth world of rare and more valued money of the Capitalists with personal ability and effort.
We could decide that We will place upon this new money a Spiritual Value System and express this as the "Value Of The American People’s Potential As Producers Of Wealth". Potential is not nothing, or thin air…I think of it as capability that is about to happen. Let Us raise the bar to this Spiritual Value System. Its all about mindset.
This would initiate a division in the dollar wealth of Our Nation. The Earned Income Level could be called the "Common Wealth" and the Capitalist Level could be called the "Elite Wealth"…the stronghold of Meritocracy. Common Wealth would have half the spending power of Elite Wealth. For instance a car would cost $40,000 Common Bucks or $20,000 Elite Bucks. It will be possible for Common Wealth to purchase luxury, but harder to do. Common Wealth is designed to guard a new status quo of American living standard, not be an equally powerful inroad into the Capitalist Realm. This would be a splitting of the economy into a "Set Market" and a "Free Market". There might be some crossing of the line between these two divisions of wealth through bargaining and discounting for whatever reason. However, the set pricing in Common Wealth must not be affected by any kind of inflationary action. It is set by the Will Of The People and must remain inviolate. Inflation can remain a greed disease of the Elite Wealth Realm.
Common Wealth would be on a par with Elite Wealth for We The People designated "Life Items"…the basic necessities of life. This would simultaneously cause less strain on Elite Wealth, which would pay half as much for these "Life Items".
"Life Items" are basic foods and products made within the national economy. Yes on natural or processed Butter, Milk, Eggs, Meat, Fish, alcoholic and non-alcoholic beverages, Wheat and other grain products, housing, basic transportation (including the less expensive boats and airplanes), clothing and entertainment.
"Non Life Items" would be caviar, expensive luxury autos, airplanes, yachts, resort vacations, million dollar homes, ocean liner travel, certain imported food items designed to attract the rich and famous, and so forth.
Life Items could be determined and identified as such without causing too much disruption in the economy.
Basically that is the idea presented in this article. Economic protection of the general populace and the opportunity for wealth advancement for the economically adventurous. Both of these divisions being a healthy element in the economics of Our Nation.
Maybe the "Common Wealth Bucks" could be pretty Rainbow Colors. Many colors to symbolize the great diversity of Our Nation. Motto: "Lookin Good From Hand to Hand, Keepin Poverty From The Land." Call em "Raindolls" if We like. This seems better than what We have now. Something for everybody, (well, maybe not "everybody", but hopefully most who deserve this consideration because they contribute to America). We need to learn to recognize, value and maintain Our Assets as a People and get rid of Our "liabilities".
my ideal society had always had a minimum standard like that as well...good read dan. much more thought out than mine, and I hope not too fraught with political problems, despite the ubiquitous problems of the political ignorance and the necessary political will to achieve it.
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However, in my 
Yes, there is now the euro. But is that currency cocktail any better? Somebody called it the Esperanto currency, meaning the hopeful currency. Before the creation of the euro all the central banks of the world held all their monetary reserves in U.S. dollars, a currency backed by nothing. After the dollar crashed in recent years, they shifted their paper dollars into euros. How clever -- they sold gold at the bottom and then they sold dollars at the bottom. 