A government gone bad! October 2014
Dr. A. H. Krieg
The power to set interest rates, issue fiat currency, and to indirectly tax was granted the FRS with passage of the 16th amendment in Dec. 1913. The same congress also removed the power of all individual states with passage of the 17th amendment altering senatorial elections to popular from the previous appointment by state legislatures. This ended state rights forever. These two events were paramount in changing America from a Constitutional Republic to a Democracy. The enactment of the 16th and 17th amendments forever changed America, placing a consortium-monopoly of banksters in charge of our nation. There is not a singe democracy that ever in world history lasted 100 years.
Today almost exactly 100 years since those events America is bankrupt and our population is so severely dumbed-down that they appear unable to understand our situation, or simply don’t give a damn.
Facts indicate that we have no silver left in our once huge stockpile and that there in no, or very little gold left at Fort Knox or the FRS banks in NY and around the nation.
The dollar that was since WWII the world reserve currency is in the last stages of being deposed. The BRICS and other trade groups are already cross trading in in ½ dozen differing currencies as well as gold.
The FRS continues to issue $55 billion of fiat journal entries to their branch banks of currency backed by absolutely nothing. Not by hard asset, not by debt instruments, by nothing. All of last year they did the same with $85 billion a month accounting for a currency inflation of one trillion dollars just in 2013. Total currency inflation since Obama took office has been over $5 trillion. Meanwhile the national debt on the books has risen to over $17.5 trillion and the off the books debt is now over $ 200 trillion. So that you will understand this the entire American economy consist of $14.6 trillion and the entire world economy is $ 85 trillion. Anyone who tries to inform you that we can repay this debt is lying. We are at this point unable to collect enough taxes to cover the interest cost of our debt.
Originally when Social Security was set up all the collected taxes were placed in a “Lock Box” to which congress had no access. The same was true of the collected fuel taxes (Highway Trust Fund) and fees from the U.S. patent office. In the 60’s and 70’s all government collected fees, taxes, and license collections were moved into the general fund, thereby giving our elected crooks access to all government collected funds and to use those funds to buy votes. Make no mistake, this is why we have an 87% re-election rate, our congressmen and senators attach riders onto legislation to benefit one-or-another of their constituents thereby insuring their re-election. This is why democracies always fail, once the people come to realize that they can vote themselves benefits through their bought and paid for representatives the jig as they say is up.
Americans are taxed to the hilt; we have the highest corporate tax rate in the industrialized world. Our IRS taxes are structured in such manner that it is impossible to corectly estimate payable income taxes. In 2004 a national publication employed 10 CPA’s to file a tax return for the same account, then they hired 10 IRS employed accountants to do the same, not one of the 20 turned in filings had the same amount of due taxes. Regardless of any other consideration it is unrealistic to assume that the government has the ability to increase taxes much more. Setting that aside, Obama has proposed, with loud applause from the progressives, 442 new tax increases since he took office. Most of these are behind the scenes add-ons, fees, and license cost increases.
The FRS has created a system of criminal market manipulation through the establishment of the “Plunge Protection Team” that acts as a buying agent for the FRS of socks and bonds when the markets fall. What the FRS is doing is to take money created by QE backed by nothing and then using it to purchase stocks and bonds every time the markets fall.
Lastly are the stock and other markets. You would think that they are at the highest level ever, what in heavens name is he talking about. Let’s all understand the situation; the capital markets are up because banks that have been the recipients of all that quantetive easing money printing have become the major market investors. Additionally large especially multinational corporation have been borrowing money at low interest rates and purchasing their issued stock with the borrowed money in order to increase the value of outstanding stock so that the managers of those very corporation can pay themselves huge salaries and stock divided. These combined efforts have created a market bubble that will shortly burst.
The management philosophy of the progressive wing of the Republocrat system is basically the redistribution of wealth from producers to loafers. To think that this is only the Democrats is a grievous mistake; both Republocrat parties are in this game.
To re-cap the events of the last 7 years have resulted in the establishment of 10 factors that necessitate market and dollar collapse:
1) The creation of a system of taxation that is irresponsible.
2) The loss of states to effect federal actions.
3) The failure of education and the dumbing down of the people.
4) The total elimination of hard asset backing of currency.
5) Massive quantetive easing providing cheap money.
6) Irresponsible spending of asserts by congress.
7) Inability to further increase taxes to pay for QE’s.
8) A totally dishonest criminal progressive tax system.
9) Capital markets invested in by banks based on low interest by FRS.
10) The establishments of Plunge protection Teams buying stocks for
The Federal Reserve System.
Before continuing I want to make it very clear that the FRS is not federal it is a private corporation incorporated in the state of NY as reported in the NY Times Sept. 23 1913. The FRS is not a reserve because the FRS has no reserves they are simply bookkeepers. And they are not a system they are a corporation. The FRS is the world’s largest monopoly; a right grated the FRS by congress in December 1913, by passage of the 16th amendment and the Federal Reserve Act in 1914.
Of these entire thing the greatest impact on all Americans will be when the dollars ceases to be the “World Reserve Currency”. This requires an understanding of how international payment are made by banks. Up until the beginning g of the Obama administration all international transactions were carried out in dollars. If you were a Russian, German or Chinese and you desired to purchase a product made in another nation you would buy dollars and setel that debt that debt with dollars you purchased with your currency on the international banking market. This gave America a huge financial advantage; if our banks did not have the sufficient exchange currency of dollars they simply went to the FRS and asked for money, which the FRS would print up. This is fine if hard assets of debt back the money but if it is un-backed it causes inflation. In the last 7 years the dollar has through these actions been massively inflated. Many nations are feed up with this, because the dollars that they hold as US debt of for transferee when they purchase foreign goods is falling in value. Per example China remains the holder of about $1.4 trillion in US debt instruments, which has fallen to an actual purchase value of $1.2 trillion.
The effect of this dollar inflation will be the loss of the dollar as the international reserve currency, which will happen soon. When that takes place prices of all imported goods in America will rise by at least 40% almost immediately. As prices rise the economy will collapse.
By the actions of our congress in the establishment of free trade American manufacturing industries, especially small manufacturers have been devastated. From the establishment of NAFTA and CAFTA and expanded free trade by Obama America has lost 11.7 million “blue collar” manufacturing jobs and about 50,000 small manufacturing businesses. Consumer goods that prior to 1950 were 95% made in America are today 95% made overseas.
Compounding all of the aforementioned is Obamacare and the just released employment numbers. Obamacare continues to drain jobs out of the economy. In a study by the Philadelphia based FRS Bank, employers have cut 18.2% of workers by job elimination or conversion to par time labor due to Obamacare. Only 3% of employers increased payrolls. About 20% reported that they increased part time workers in order to reduce healthcare insurance exposure. I predicted all of these issues years ago.
Last month the economy created about 120,000 new jobs, but the labor market grows by about 225,000 each month. Economic activity construed to shrink in the 2nd quarter 2914. But worst of all is the reported median income of Americans, which has fallen ever since 1960. Dependent on education average income has fallen between 3% and 8.2% in 2013.
The expansion of yet another useless and expensive war in the Middle East in which America carries 90% of the cost does not help our falling economy. In 2000 I wrote a book available from A2Z Publications titled “July 4th 2016 The Last Independence Day” it appears that my prediction was unfortunately for all of us right on target.