The Rebirth of Barter

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Justice in the hands of the powerful is merely a governing system like any other. Why call it justice? Let us rather call it injustice, but of a sly effective order, based entirely on cruel knowledge of the resistance of the weak, their capacity for pain, humiliation and misery.
– Georges Bernanos
(1888-1948)

Outwardly we have a Constitutional government. We have operating within our government and political system, another body representing another form of government, a bureaucratic elite which believes our Constitution is outmoded.
– Senator William Jenner
(1908-1985) U.S. Senator (IN-R)

The Final Act of the Uruguay Round, marking the conclusion of the most ambitious trade negotiation of our century, will give birth – in Morocco – to the World Trade Organization, the third pillar of the New World Order, along with the United Nations and the International Monetary Fund.
– Government of Morocco
April, 1994   Source: New York Times, full page ad by the government of Morocco

Before I get into the email I want to remind everyone that I launched a blog a week ago and it can be found here: http://libertyblitzkrieg.com/  I have also recently added a twitter account if you want to get updates on posts that way and there is a button on the right sidebar for that.  Ok, now onto the fun stuff…

The Plates of Power are Shifting
What an amazing time to be alive.  Whereas in prior decades plans for global dominance by TPTB via a global fiat currency and supranational organizations set up under the guise of “the general welfare” were largely kept hidden from the public, there was always going to be a coming out party where these control-freaks needed to “sell” global bondage to the 99.9%.  Whether you believe 9/11 and the collapse of 2008 were planned or just randomly happened is largely irrelevant.  What is indisputable at this stage is that these events were both used as the “crises” to announce their plans.  9/11 was the catalyst to sell the sheeple on the police state here in America and in reality across the entire globe.  Despite the fact that you probably have a greater likelihood of being hit by lightning while riding a tricycle than being killed in a terrorist attack, heightened fear was encouraged and promoted by the media and our government in order to put in the infrastructure for a total police state.  Many people stood up at the time and pointed out that this event was being used to manipulate people into going along with a shredding of the Bill of Rights, but most of us remained completely compliant out of shock and fear.  Then, seven years later we had the global financial crisis.  While 9/11 played on people’s fear of physical harm, the GFC played on people’s fear of financial harm.  As soon as it happened the selling process was on.  The sale was that capitalism had failed.  We needed more government.  More importantly, the Central Planners (the FED and all other Central Banks) were made out to be the heroes.  We were told at the time and continue to be told to this very day that if it were not for the decisive action and infinite wisdom of these mandarins we would be back to the stone age.  Combined, the attacks of 9/11 and the GFC were used as the vehicles through which to more overtly announce and sell the implementation of the long planned New World Order.

As we know, for every action there is a reaction and I am pleased to say that the reaction from the public has generally speaking (albeit very gradually) been in contrast to what TPTB had hoped for.  While I think 9/11 was a great success for them the GFC was not.  In fact, I think it was the absurdness of the actions to save the system since 2008 and the clear theft and consolidation of power by the financial elite since that date that has served more than anything else to wake up tens if not hundreds of millions of people throughout the world.  This has clearly frustrated the plans of these clowns and their concern was quite evident on the face of The Bernank during yesterday’s press conference.  Things are now falling apart so fast for these guys behind the scenes that they are being forced into increasingly desperate action.  This increasingly desperate action is then being translated into more sheeple waking up, which in turn is resulting in the undesired response from the public and even sovereign nations themselves.

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Where in the USA are the Drones Headed?

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Several weeks ago, in one of my weekly articles I mentioned the fact that a bill was recently passed that allocates $63 billion to the FAA to increase the existence of drones operating in U.S. airspace to 30,000 by the end of the decade.  Well the Electronic Frontier Foundation is doing some great work on … Read more

Thought of the Day – Bernanke is Concerned…Very Concerned

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I haven’t turned on my television in months other than to watch Game of Thrones on HBO (I highly recommend it if you haven’t seen it although this season has been slow so far) so it was an interesting experience watching CNBC for the first time in ages on the plane.  Since markets are solely … Read more

Cartoon of the Day!

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This cartoon is from 1912.  As much as things change, I guess they stay the same.  Only problem is back then they responded by passing the Federal Reserve Act a year later.  This time we will need pretty much the exact opposite response.  Less centralization, a return to actual free markets, strong local communities, an … Read more

Marine Officer of 27 Years Blasts Two Party System

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Quick but powerful video here.  Major Christopher Miller who served his country bravely for 27 years as a marine stands up at the Missouri GOP Congressional District Convention to attack the red team/blue team farce that is America’s political system today and voices his support for Ron Paul.  He also blasts the pointless wars, no … Read more

Thought of the Day – House Flipping in Colorado

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I overheard a very interesting conversation in a local coffee shop today between a realtor and a prospective client.  It was the sales pitch that really shocked me as I could have sworn I was transported back to early 2005.  She was using lines like “you’d be a fool not to buy with rates this low,” while also peppering the conversation with anecdotes about this “person she knew” that had just flipped a home for a 40k profit in just a few weeks.  America is back folks.

Does this conversation translate into any actionable investment ideas?  Not really, but it relates back to what I wrote several weeks ago regarding the equity markets.  That people that know better are once again drinking the kool-aid.  The one thing I do feel strongly about is despite ubiquitous prognostications of real estate brokers everywhere, housing is going to be in a deep slump for a very long time (unless we get hyperinflation of course, where anything is better than paper dollars).  Despite all attempts to revive housing and trillions of dollars printed and then spent by the government, all housing has done is bounced around the bottom.  Ex-hyperinflation I expect another major leg down within the next couple of years and even in hyperinflation I expect real estate will do poorly in real terms (ie versus gold).

It is at this point that I’d like to direct you to read a piece I wrote in March 2010 titled: Residential Housing: Why it Doesn’t Stand a Chance.  One of the focal points of this piece was that Americans would become a lot more like the Madrilenos that I lived with during my study abroad in Spain.  Basically a huge percentage of the population lived at home until marriage or even after and there is no reason that cannot happen here.  Not to mention the fact that the youth in America are not only likely to rent but also to simply shove more people in the same space.  All of the secular trends I identified back then hold true today and with over $1 trillion in student debt you better believe it is only going to get worse.  There is also the fact that household formation generally, ie marriage, is also likely to enter a secular decline much like has happened in Japan.  It has been and is my view that household formation in America is about to take a drastic turn lower and this will be the biggest headwind for the market.

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Are Pawn Shops Running Out of Gold?

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My Two Cents: Last Thursday, EZCORP Inc., a pawn shop owner and operator in the United States, reported earnings and in that release they had some very interesting things to say that relate to the gold market.  Take this line from their press release where they discuss why they are lowering guidance. This revision in … Read more

Tom Friedman Begs for More Government Power in Latest Op Ed

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My Two Cents:  Ten years ago I actually liked Tom Friedman.  Perhaps it was because of my sheeple state or perhaps it was because I thought From Beirut to Jerusalem was a great book.  In any event, in recent years I have come to really dislike the man.  What initially made me annoyed with him was his complete lack of understanding of how the global financial and monetary system functions, yet his consistent platitudes on how economies and governments should work without understanding the real macro backdrop of it all.  I have also noticed he tends to salivate about more government power and his latest from the NY Times does that in spades.  While I totally agree that special interest groups and lobbyists have way to much influence on policy, at the end of the day it is the politicians that choose to take the payoffs.  Furthermore, he states that there are so many checks and balances nothing can get done!  Really?  It seems they have no problems passing things like the NDAA that allows for the indefinite detention of American citizens without a trial.  Or what about the provision in the recently passed Senate Bill 1813 that will permit the U.S. government to take away your passport if the IRS claims you might be doing something wrong.  Oh and this same bill also mandates black boxes in all new cars. It seems to me that Constitution shredding legislation flies right through, but yeah Friedman we need more government power.  I think you’ve spent too much time in the Middle East pal.

Friedman disturbingly asks: has American gone from a democracy to a “vetocracy” — from a system designed to prevent anyone in government from amassing too much power to a system in which no one can aggregate enough power to make any important decisions at all?

Then of course he takes a shot at the Internet and blogosphere for making it harder for shady political deals: In addition, the Internet, the blogosphere and C-Span’s coverage of the workings of the House and Senate have made every lawmaker more transparent — making back-room deals by lawmakers less possible and public posturing the 24/7 norm.

The he quotes historian Frank Fukuyama as if this guy is the be all end all of political discussion: If we are to get out of our present paralysis, we need not only strong leadership, but changes in institutional rules,” argues Fukuyama. These would include eliminating senatorial holds and the filibuster for routine legislation and having budgets drawn up by a much smaller supercommittee of legislators — like those that handle military base closings — with “heavy technocratic input from a nonpartisan agency like the Congressional Budget Office.”

Did you notice that too?  Heavy technocratic input.  Remember that word and don’t forget it.  It means unelected.  Greece and Italy have technocratic unelected bankster heads of state and believe me that is the plan for here as well.

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Thought of the Day – The Incredible Shrinking Size of Sunscreen

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As most of you reading this are probably well aware, the insidious tax that is inflation can come in many shapes and sizes.  The two main ways that it is manifested in our everyday lives is via price increases and shrinking portion sizes/lower quality.  I have noticed a lot of both in recent months but it is becoming apparent to me that the shrinking portion strategy has taken off into the stratosphere, at least for me in my everyday life.

It is this latter method of passing on inflation that really drives me up the wall.  While transparent price increases are clearly annoying, at least it is fairly clear to the consumer and he or she understands what has happened and that there may or may not be an economic choice at hand.  In the case of shrinking portion sizes, the price signal is much more subtle if present at all.  You may notice yourself going back to the grocery store more often but that might be all you recognize at first.  It is especially hard to notice in the early phases of inflation when the package size may shrink by 3% and the price increase 2% for example.  It’s only in the intermediate stages of the inflation that you really start to notice you are being screwed.  I believe we have entered that phase.

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