"The U.S. economy has contracted sharply since last fall, with real gross domestic product (GDP) having dropped at an average annual rate of about 6 percent during the fourth quarter of 2008 and the first quarter of this year. Among the enormous costs of the downturn is the loss of nearly 6 million jobs since the beginning of 2008.... According to the CBO's estimates, by the end of 2010, the stimulus package could boost the level of real GDP between about 1 percent and a little more than 3 percent and the level of employment by between roughly 1 million and 3-1/2 million jobs."
"We, the FED, have helped instigate a new Depression, and the Obama Stimulus Plan is going to fall flat on its face. GDP dropped by way over 5% for the past two quarters, and we would be lucky to get a 2% increase from the Stimulus. The economy shucked way over 6 million jobs, job losses are continuing to mount and the Obama Stimulus Plan will be lucky to get back a quarter of that. Perhaps if the FED had not manipulated interest rates (slide 40), helped suppress the price of gold, and regulated OTC derivatives, this mess would be a lot less severe. Sorry about that."
"Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth... Maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance."
"We are screwed because we are spending like drunken sailors!! Those Austrian economists are right!! Just look at the White House budget for the next ten years, and keep in mind the figures after 2011 are wildly optimistic."
"See the $2 trillion deficit for 2009 and the $1 trillion deficit for 2010 and 2011? That's our doom staring back at us, although our rampant printing of money might ease the pain for the elite few a little bit. See the tax increases in 2012 and 2013? We are going to try to increase income taxes or implement carbon taxes or some other nonsense so we can jack up tax revenue by 25%, but hopefully we can hold off on this until Obama is re-elected."
Bernanke: "In this environment, we anticipate that inflation will remain low."
Translation: "We don't really have any clue what is going to happen next as we are in uncharted waters. The credit markets are opaque, so it's even possible we may deflate for a few years until we hit a Misesian crack-up boom and the currency fails through hyperinflation (though true CPI/inflation is around 7% . However, hopefully we can get inflation instead by creating lots of lots of new money (or "inject liquidity") and keep it from spiraling into hyperinflation. Good thing many Americans still do not understand how the FED works."
"As a consequence of this elevated level of borrowing, the ratio of federal debt held by the public to nominal GDP is likely to move up from about 40 percent before the onset of the financial crisis to about 70 percent in 2011. These developments would leave the debt-to-GDP ratio at its highest level since the early 1950s, the years following the massive debt buildup during World War II."
Translation: "My international banker and military-industrial complex friends love these profit-making opportunities. War truly is a Racket, just like the highest-decorated officer in the history of the Marine Corps, Major General Butler, once figured out. Too bad too few listened to him, otherwise I would not have a job."
"Let me close today with an update on the Federal Reserve's initiatives to enhance the transparency of our credit and liquidity programs... We expect to begin publishing soon a monthly report on the Fed's balance sheet and lending programs that will summarize and discuss recent developments and provide considerable new information... We will continue to look for opportunities to broaden the scope of the information and supporting analysis that we provide to the public."
"Crap. I really can't believe 190 Representatives have co-signed H.R. 1207, Ron Paul's bill to audit the FED. It's a good thing my international banker friends have pretty much bought the Senate, that 17th Amendment of 1913 that my forefathers got passed along with the Federal Reserve Act of 1913 is a real lifesaver! We will keep throwing sand in Congress' and the American peoples' eyes for as long, as hard, and as fast as we can."
Please check here to see if your Representative have co-signed HR 1207, the Federal Reserve Transparency Act of 2009. I also recommend contacting your Senators (the bill there is known as S 604) and writing directly to the Financial Services Committee at this link. It's time to fight back.
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings of this article to your blog or anywhere else in order to promote the Restoration of our Republic.
Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.
Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.
"Intelligence is quickness in seeing things as they are." - George Santayana
The views expressed
in this article are those of Jake Towne, the Champion of the Constitution only and
do not represent the views of Nolan Chart, LLC or its affiliates.
Jake Towne, the Champion of the Constitution is solely responsible for the contents
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Hi Jake, can't wait to see that Fed balance sheet! Can't imagine what it will look like!
In what other industry besides banking, does it require a federal agency to determine whether the company is 'insolvent' or not? I think that is hilarious and due to the "unaccountablility" of reserve banking and money creation.
Posted By: Sonic Ninja Kitty
Date: 2009-06-07 19:29:27
Great Fedspeak interpretations! I especially liked the last one: "Crap." LOL! Do these guys seriously think they can hold it together?!? I can't figure out if they are complete idiots or just purely evil.
Is your previous recommendation of a 6 months supply of food/water & cash still about what you are thinking? Thanks for the great articles!
Posted By: Jake, the Champion of the Constitution
Date: 2009-06-07 20:04:48
Dear Sonic Ninja Kitty,
If I ever write another column I think I will go for the humor effect and pick a moniker like yours, love it! :)
"Do these guys seriously think they can hold it together?!? I can't figure out if they are complete idiots or just purely evil."
I think you probably wrote this as a joke, but it's a very serious question that I've hurled my noggin at quite a bit. The 2 general views are:
1) They are liars (read my "Bernanke's Great Lie" piece) and manipulators (interest rates, suppression of gold, public statements, etc), but are doing it because they truly believe it's "what's best" for the American people but honestly thought fiat currency would rule forever.
2) They are liars and manipulators but understand that gold is the only true, immutable currency, and a crack-up boom can occur, but have a backup plan - like the Gold Certificate Ratio to reinstate to "save the day." Try reading this http://www.321gold.com/editorials/thomson_s/thomson_s_060509.html
My next piece that I hope to get out on the London Gold Pool and the GCR soon will maybe shed a little more light, at least on what I am thinking. My best guess at this point is that they had thought the suppression of gold would continue from 1994 - 2050 or something, but the gig failed 30 years early and now #2 is in place, it's just a matter of time (as in months or several years).
Bernanke's ilk are actually pretty smart - they've averted the collapse of a badly flawed paper currency for 1.5 years so far - but that doesn't mean they aren't idiots - you or I could do a lot if we had the "money power" too - which includes a backup plan to head to the Caymans.
People - unfortunately, but with just cause - might be calling for their heads to roll before this is all over.
And, remember SOME has been making A LOT of money right now due to current events. It's not the governments, and at least not some of the banks.
Yeah, well's are good, looking into chickens that don't have the flu :) The banks' cash situation is ever more desperate.
Posted By: Sonic Ninja Kitty
Date: 2009-06-08 08:29:41
If you like the name, just wait until you see my avatar! http://sonicninjakitty.wordpress.com/
The idiot/evil question is a serious one. I have always been interested in psychology, philosophy, literature & humanities, so I'm honestly struggling with what to believe about these people. I think Obama is pretty much a narcissitic tool, with many in his administration just there for the power trip, ego boost and $ payoff. The MSM is for the most part full of superficial prima donna sheeple who carry out any orders from above for the almighty buck and the adoration/screen time.
I can't buy into point #1, as Geithner and Bernanke et al have to be bona fide opportunists. Any person with a shred of decency would not have spun such a complicated and monstrous web of deceit while the laborers of this nation slog through the detritus trying to make something for themselves. How much money does a person need in life? When is it enough? What in the world are they getting out of life when they trade their very humanity for simple money? How can they even look another human being in the eyes at this point without collapsing in shame?
Is it not possible to have the nation Jefferson envisioned? Fighting for truth is great and all, but greed, laziness and ignorance attract each other effortlessly and create such a formidable impact. Are truth and justice not meant to be in this world after all?
Seriously, these questions are keeping me up at night.
As for the gold stuff, I do hope I can understand more using your next article. My head is not wrapped around any of this gold stuff at all. My better half lived in a country with hyperinflation and he is not near as worried as I am because he says people just make their way as things go along. I trust in the goodness of regular people but I fear our 'governmedia' would interfere with any recovery efforts our general population would take if and when they see their power and influence diminishing.
No one can predict the outcome of this once in a lifetime event that is coming. Nope...too many unpredictable variables.
Posted By: Jake, the Champion of the Constitution
Date: 2009-06-08 09:24:12
Dear Sonic Ninja Kitty -
Love your avatar and site, thanks for the references to a couple articles I wrote (crap reminds me I still need to write up Part 8 :)
On point #1, I agree with the questions you ask but being a devil's advocate (apt title perhaps) - what if they are so out of touch with reality and/or insulated that they do not realize what they are doing? I think its more possible than it sounds, esp. with the POTUS.
"Is it not possible to have the nation Jefferson envisioned? Fighting for truth is great and all, but greed, laziness and ignorance attract each other effortlessly and create such a formidable impact. Are truth and justice not meant to be in this world after all?"
I believe its possible otherwise I would not be running for office. However, I dont fool myself in that there certainly will never be a utopia - greed and deceit will always exist. The rule of law and the free market arenot perfect, but they are the best human society has thought up, in my opinion.
I am also an optimist, and my suggestions are to 1) read my Ron Paul - The Gray Champion article about the Fourth Turning - if you havent read it or heard of it you would probably enjoy it immensely. 2) read Martin Armstrong's It's Just TIme on phase transition shifts, and 3) www.commonsenserevisited.com's paradigm shifts (sort of like Stephen Covey's)
The Fiat patent fraud. About the Fiat hybrids: the technology double clutch with electric motor between has been stolen by a patent that Fiat Company has never wanted to purchase, but only shamelessly to copy. This hybrid solution will be the basic technology with Chrysler's electric and hybrid car program. Please give a look in my blog where the "vitality" and boldness of the Fiat planners it appears in all of evidence: http://dualsymbioticelectromechanicalengine.blogspot.com/
If the industries can afford unpunished to copy the ideas and defending it need very expensive trial, to which target need the patents? How to defend the rights of private inventors? How our young people can find intellectual courage if the economic potentates crush the rights of the single ones? Whoever is about to ask for a patent or wants to propose a proper patent to a big firm I suggest to give a look to my experience with the Fiat, to get able to operate with better adroitness. Thanks and good time to everybody. Ulisse Di Bartolomei