What Can We Do?
A number of people have asked what can we do about losing our rights. I believe there is nothing we actually can do until the majority get upset. That may be what the 2016 Presidential elections are about. Political Change only comes when the economy turns down. The old adage – if it ain’t broke – don’t fix it.
What we are witnessing is the decline and fall. This is simply part of the cycle. This is how ALL great Empires, Nations, and City States collapse. We are putting together a serious international think tank. There are solutions to restore our liberty. All of this emerges because of the collapse in socialism. Government cannot be sustained under the current economic system. Consequently, we are dealing with bureaucrats who only see everything as grabbing more and more power. They cannot see that they are killing the economy globally and destroying the future of the next generation.
They are hunting down money and increasing taxes on a grand scale. Obama wants yet another $1.6 trillion tax increase. September will be the next debt ceiling fight. There is nobody looking at this from a practical long-term perspective. Just how do we survive long-term? Nobody has any plan whatsoever.
This is not about returning to a gold standard. We are so far beyond that. We have to completely restructure everything to realign the economic systems and balance them with out rights. We must confront (1) What is money. As simple as that may seem, everything depends on it. If we take a step forward and look realistically at the monetary history and the evolution of money, we will see the light and comprehend that the next step in the evolutionary process awaits.
We are preparing the full SOLUTION well documented step by step. We are bringing together an INTERNATIONAL think tank to eliminate this party politics nonsense. The entire world is in serious economic trouble. This is merely phase II where communism collapsed in 1989 and 26 years later (2015.75) will start the collapse of Western Society. But before that collapse, we must move first to the extreme and this is what the NSA has been doing right on time. The 224 Year Cycle of Political Change turned in the USA April 22, 2013. By June the Guardian began publishing the leaks from Snowden that the world could no longer ignore.
The bottom line – there is nothing we can do except wait for the timing to unfold. When that happens 2015.75-2020.05, then and only then will we begin to see real political change. The entire point is to connect the dots. It is far better to realize what is unfolding so you are prepared rather than be caught in a state of panic asking when did this happen?
Email service used by Snowden shuts itself down, warns against using US-based companies
Glenn Greenwald has been championing Edward Snowden and has reported that the Email service used by Snowden has shut itself down, warning against using US-based companies: ‘Google, Facebook, Microsoft, Yahoo, Apple, and the rest of our internet titans. He askes why have these companies rolled-over and are not fighting for our interests the same way.
The front page of Lavabit announces to its users its decision to shut down rather than comply with ongoing US surveillance orders. Lavabit is a Texas-based encrypted email service that was revealed to have been used by Snowden. Lavabit it was shutting down in order to avoid complying with what it perceives as unjust secret US court orders to provide government access to its users’ content. “After significant soul searching, I have decided to suspend operations,” the company’s founder, Ladar Levinson, wrote in a statement.
Lavabit was probably served with federal court orders demanding passwords and future ongoing monitoring of all emails through their server. Lavabit shut itself down to avoid compliance while it appeals to the Fourth Circuit.
This morning, Silent Circle, another US-based secure online communication service, has also announced it is shutting down.The company, in a statement by its founder, Phil Zimmerman, said: “We see the writing on the wall, and we have decided that it is best for us to shut down Silent Mail now.”
Lavabit has also been hit with a gag-order. A gag-order is issued by a court and you will be thrown in jail if you talk about the subject they are denying you. In my own case, they put a gag-order on all documents stating I could not reveal to the public what the banks were doing for the rest of my life. Anything I want to release HSBC has to approve until I die. I was also not allowed to provide any evidence or assistance to clients who were suing HSBC. So much for freedom of speech, seeking the truth or helping alleged victims. They use gag-orders to protect favored sons like the bankers and illegal government operations. So Lavabit cannot come out and even state freely what the government wants them to do. The only choice is to shut down the company. In my own case, they demanded the source code to all our models or they would fire the entire 240 member staff. I had no choice but to shut the company or they would get everything and then what?. I would be found in some park committing suicide like Foster? This is standard procedure.
In other words, it does not matter if you believe you have Constitutional rights. They mean absolutely NOTHING until you can find a federal judge to agree. Good luck when they appoint former prosecutors as judges. Lavabit has been told that they would face serious criminal sanctions if they publicly discuss what is being done to their company. We do not live is a “free country” any more. Government gets to do as it like whenever.
America cannot survive when it turns against its own people. This is indicative and right on time regarding the turn in the 224 Year Cycle for the United States – virtually to the month. This is the typical reaction that always takes place in the end times for every empire, nation, and city state in history. Google, Facebook, Microsoft, Yahoo, Apple, and the rest of these internet titans have sold out more than their companies. They have defiled the American Dream, what so many generation have fought and died for. How can we tell our kids to go to war and risk their lives for our way of life? The Constitution means nothing. There is nothing left. Those who think you can buy gold coins to survive had better realize that unless you are paying cash where there are no surveillance cameras, chances are they know you have the gold and view that as someone who disagrees with their power.
It is beyond the point of no return. We are either a free nation or a subservient one. If terrorism is that severe, close up shop and stop meddling in the world’s politics and they will also leave us alone. That is a better alternative to giving up everything to gain nothing. Lavabit has taken an impressive stand against the US government, sacrificing its own self-interest for the privacy rights of its users. No greater noble act can ever emanate from the depths of Washington.
Market Recap
The Euro on the cash reached 13359 yesterday and we our weekly resistance is 13357 for this week so a closing below that will warn that the euro may have reached a high 23 days up from the July 9th low (we are currently trading at 13341). Eventually, a weekly closing beneath 12800 will signal a drop back to 12100.
In gold we do not see anything major yet. The turning points appear to be Sept/Oct with choppiness ahead and the big turning point comes in January, A close above 2025 in silver will help for bounce into next week.
In the Dow, the critical support is at 14827-14805 and 14450. Break this area and a sharp drop to 13780 is likely. We still see September as turning point with volatility rising in October and November, subsiding for year-end, and then jumping again in March next year.
Parallel Construction – International Plausible Deniability
The US has been using the British and the Germans to spy on Americans as they in turn gather evidence on their citizens and they are all avoiding the the law. “Parallel Construction” is a term used within government when they are creating fictitious documents to pretend how a case against any citizen actually begins. The government routinely hides evidence all the time in every case it may bring for any reason. What has been going on also is the International Plausible Deniability Scam. I explained the detail of how US brokers send money back and forth to trade with client funds. The New York branch sends the cash to the London branch where placing client funds into the overnight REPO market requires client approval. The US branch becomes the “client” of the London branch and then legally trades all the client funds in New York without clients ever approving anything. This is how M.F. Global lost client money. They have been shipping money around to skirt the laws. I myself kept my funds in Fannies which were not AAA and could not be posted in the REPO market. Why did the bank plead guilty and agree to return the missing funds? Because they were playing games with my notes and still using the money NEVER posting any entries in the account statements to show what they were doing. I thought I prevented them from shipping my funds out using Fannies instead of T-Bills. They found way around that and didn’t bother to record any entries.
Government agencies play the same trick. The British can violate US law and gather info on Americans and then hand it over to the NSA completely illegal and the NSA can say they did not do it. Likewise, the NSA does the same thing to British so each organization is able to act entirely illegal by having the other do the dirty work. This is how “Parallel Construction” also plays a role in hiding what they are doing globally creating International Plausible Deniability. The White House says all the time that they are intercepting foreign info. What they are not being honest about are the deals they cut with others to spy on Americans and then they swap the data. This is not about terrorism. This is hunting money on a grand scale.
Crime is also Rising in Europe Among the Youth – Solution? More Police & Restore Border Checks Not Lower Taxes to Create Jobs
The side-effect of socialism and high unemployment among the youth is the rising crime rate in Europe involving youths under 25 for monetary gain. A 72 year-oldretired boxer beat-up a youth with a knife who entered his home. Hiring police has been rising, but at the same time there are those who are arguing it was the removal of borders in Europe that fueled criminal operations. The theory is that police are confined to the locality whereas the criminals are not. So the unemployed youth in the south move north to plunder. Ironically, instead of looking at the high taxes destroying job creation, they want a FBI of Europe and border controls restored. They always see this as they need more power to correct the trend rather than the possibility that they are causing the trend.
Is Hyperinflation Associated only with Revolutionary New Governments?
QUESTION: I have done my own homework and it appears you are correct regarding monetary history and that simply because a currency is “fiat” does not result in hyperinflation, Even the Greenback of the US Civil War did not result in hyperinflation. Is it correct to say then that hyperinflation takes place only with revolutionary new governments?
ANSWER: To be precise, hyperinflation takes place when there is a collapse in confidence that supports a government so it can be an established government such as in South America. The key is the currency is not accepted by the people. That comes FIRST and then we see that they print more and more following the trend and propelling it. This is the chicken or egg dilemma. It is not the REVERSEthat the supply increases and that causes the currency to decline as characterized by the gold promoters.
Hyperinflation unfolds when the people no longer trust the government and that can occur with an established government as in South America without war, but it is traditionally associated with revolution such as the American colonies during the American Revolution, French Revolution, German 1918 Communist Revolution, Russian Revolution, Hungary etc.
We can see that inflation was about 827% in Massachusetts over the course of almost 52 years or one ECM cycle up until 1749 well before the Revolution. We are beating that rate today but it is still not hyperinflation. Confidence has not abandoned the dollar and cannot. There is simply no other place to put BIG CAPITAL internationally – Yuan, Yen, or the Euro.
American Colonial Inflation
- Continental Currency $40 for $1 April 1780
- N.Y. & Conn $40 for $1 April 1780
- South Carolina $52.50 for $1 May 1780
- Mass., N,H. & R.I $100 for $1 June 1781
- New Jersey $150 for $1 May 1781
- Penn. & Delaware $225 for $1 May 1781
- Maryland. $280 for $1 June 1781
- North Carolina $800 for $1 Dec 1782
- Virginia $1000 for $1 Jan 1782
- Georgia $1000 for $1 Feb 1785
Technically, hyperinflation did not truly unfold in the American colonies. There still remained the basic core of confidence in the governments, albeit their currencies varied widely. But keep in mind that currency at this time was in reality circulating bonds. Pennsylvania issued notes to fund the construction of specific projects such as jails and lighthouses. Therefore, simply touting that “fiat” produces hyperinflation has no historical foundation whatsoever. For every example of hyperinflation such as in Germany, I can provide 20 showing the opposite. You do not see hyperinflation in Britain or China despite the fact that both declined from major economic peaks. Money never becomes worthless in a major core society for if the core were to collapse then everything else must fall as well. Genghis Khan accepted the paper currency of China upon his conquest and did not render it worthless. It continued to circulate and he accepted it in payment himself. That is showing the Moguls wanted the dignity of conquering civilization and merely replaced the emperor.
Human nature does not change with time. It remains consistent and this is why history repeats. With the fall of Rome, the invading barbarians wanted to be Roman. Their rulers initially issued coins merely pretending to be the emperor. One of the great kings was Theodebert I (534-548AD) whose tomb is erected and still standing as if he too had been a Roman Emperor. Thus the invaders wanted to be the head of the civilization both in China and Europe showing confidence did not vanish, just a change in ownership and no hyperinflation.
I am not selling anything so I have no ax to grind. It is what it is – always without exception. Solomon Brothers use to put out bond forecasting and that was highly regarded until the people began to notice they would put out a buy signal and they were the sellers. Conflicts of interest and forecasting just do not go together, Even if you do not deliberately put out false signals, if you are dependent upon selling that product or commodity, then it is as if you only have a hammer and everything appears to be a nail.
The British economy peaked in 1914. There was no hyperinflation thereafter despite the abandoning of the gold standard. So both the USA during the Civil War and Britain abandoned gold during war and neither entered into hyperinflation so it is true – fiat does not automatically create hyperinflation. Sorry. I believe in gold as an asset class. I do not believe in gold as the economic savior, exclusive form of money, or any other nonsense that cannot be demonstrated on a CONSISTENTbasis in history.
Today, we have come full circle. Money once again pays interest to hold it. The term “Greenback” meant that it was neither backed by gold or did it pay interest as shown on this note with the schedule. You flipped it over and there was nothing but green ink. So the dollar is once again paying interest since you can use T-Bills and bonds as collateral – a derivative of circulating bonds as it began.
Taxes & More Taxes
Regarding the low income levels for most retired people a sale of a primary home under $500,000 is still excluded. However, the annual taxes are approaching what people paid for their homes in the 1950s.
Another issue people have been inquiring about regard LLC structures is not settled as to how the IRS will view these structures (commonly referred to as “checkbook IRA”),
Based on how EIN’s are issued, I’m not sure how the IRS would know who owns the LLC. In general either the IRA custodian or the IRA owner (as LLC manager) applies for it. Tax professionals blog on a related issue- 2 single member IRA LLC’s invest in an oil wells. We cannot comment on this being correct or not. It is offered purely for those who have been inquiring.