Aaron Ford

Well maybe even the brainwashed monkeys who read the National Post may wake up to the fact that things aren’t going to to get better for a long time.

Peter Schiff in the National Post

Yes things aren’t good in Cali. As the saying goes, “what happens in the California economy soon spreads to the rest of the country”

There are a number of parallels between Seattle and Vancouver, Canada, we both drink a lot of coffee and have a lot of IT companies. We both have the majority of our citizens running around thinking we are untouchable from outside economic forces. Wrong.

Another thing we share with Seattle is that we usually feel the tail end of the economic shifts across the country. Many in Vancouver continue to walk around the streets thinking their Howe Street scams and real estate appreciations are going to continue to support their lifestyles.

For each bubble that pops there are a number of local economic changes that are unique to the city. Just like this article from the New York Times points out, Seattle has there own, as does Vancouver.

I would estimate a 20% chunk of Vancouver’s economic activity is based on grow-ops and stock scams. Weed may survive but the stock scammers are toast. So sad.

The following article from the Wall Street Journal details the horrendous f$ck up that is the average life of the current baby boomer.

Blinded by a life dedicated to full-blown greed, consumerism, and ego, North American baby boomers are going to be waking to the fact that their retirement dream is a retirement myth.

Boomer Bust: How Will the Economy Rebound Without Post-War Babies Financing Their Harleys? (It won’t)

J.P. Morgan, who is actually a front for the Federal Reserve Bank of the United States, was nice enough to publish a list of 16 stocks that they feel “that may outperform the U.S. stock market during the “global recession” it expects to unfold during the next two years.”

Outperform? As in the U.S. stock market dropping 80% while these 16 stocks drop only 65%? Ok, I can see that. For the well-informed many of these names will cause stomach-churning to think they will be in even more control in the near future.

3M Co.
Baxter International Inc.
Colgate-Palmolive Co.
CA Inc.
Devon Energy Corp.
General Mills Inc.
Gilead Sciences Inc.
Google Inc.
Hewlett-Packard Co.
McDonald’s Corp.
Merck & Co.
Monsanto Co.
Nucor Corp.
Philip Morris International Inc.
Union Pacific Corp.
Visa Inc

Dr.Schoon has become one of my favorite sources for outside the box thinking on the economy. His latest piece hits hard at what many people have been fooled/brainwashing into believing. Our whole economic system is false, soon to be exposed.

Full article

LOSERS IN THE CASINO OF PAPER MONEY
When the Dow soared 936 points on October 13th, its 11.1 % rise was its
best percentage advance since 1933—an advance which had occurred
during the Great Depression.
Five years after its 1933 historic advance, the Dow Industrials were down 90 % from its
highs and in 1953, the Dow was still down 75 %. When speculative bubbles collapse, the
losses are staggering and prolonged.
The 936 point rally on Monday will not be the only rally in this falling market. There will
be more. There will be also more lows. We have not yet seen the bottom. We’re not even
close. That’s not the fat lady singing that you hear. It’s the sound of your stock broker
throwing up.
FALSE OPTIMISM
I know exactly what investors felt after Monday’s rally. I felt the same false optimism
when the Banker’s Bailout Bill was initially rejected. Previously, I had cynically
predicted the Bailout Bill would pass and when it was rejected, I was elated.
My elation, however, was premature. In the end, my cynicism proved correct. The $700
billion bank bailout bill was approved and signed within the week as I had predicted. The
capitulation of public government to private bankers was now complete.
In 1999, a $300 million lobbying effort by banks and insurance companies had
overturned the 1933 Glass-Steagall Act, an act specifically designed to prevent another
Great Depression.
Now, because of its repeal, banks and insurance companies were again allowed to bet the
savings of Americans in their drive for profit without regard for consequence; and not
surprisingly, in less than a decade after its repeal, America is again on the verge of
another depression.
By their repeal of the Glass-Steagall Act, the Democrats and Republicans sold out
America; and, now in three weeks, on November 4th, Americans will again go to the polls
and again vote for the same parties and politicians that sold them out.
THE FACES OF THE POLITICIANS MAY BE DIFFERENT
THEIR OWNERS ARE NOT
In advanced, sic failing, democracies such as America, both political parties are owned
by the bankers who control the government and the nation by controlling the flow of
credit. Although the will of the American electorate was overwhelming opposed to the
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bank bailout bill, the President, congressional leaders of both houses and both parties,
and the two presidential candidates were united in their support of the bailout bill and
were consequently united in their opposition to the will of the people.
Democracy, n. Government of the sheep, by the shepherds, for the wolves.
L.A. Rollins, The Devil’s Lexicon.
THE CASINO OF PAPER MONEY
Our present economy is best understood as a casino. In the casino, house chips in varying
denominations, e.g. dollars, euros, pounds, pesetas, pesos, yuan, yen, krona, drachma,
won, etc have been substituted for gold and silver.
This is because the casino is run solely for the profit of the bankers; and through control
and issuance of their paper chips, the bankers are able to control much of what happens
on the casino floor.
The bankers make sure that the governments who issue the paper chips do so at the
direction of central banks. Through their influence over the central banks, the bankers
control the flow of chips without which the patrons cannot play.
Question: Who are the patrons and what role do they play in the casino?
Answer: The patrons are the producers, savers, and entrepreneurs without whose
activities the casino would come to a halt. In the casino, they are known as marks,
suckers who provide the on-going profits of the casino.
The casino’s hidden skim: Through the constant issuance of paper chips, governments
insure the value of previously issued paper chips will fall thereby forcing patrons to
gamble their earnings at the casino tables in order to preserve their paper savings and to
perhaps gain by so doing.
The casino’s hidden advantage; While the casino patrons, sic marks, can only bet their
earnings and savings on a 1:1 basis, in the private gaming rooms upstairs, the casino
owners are able to draw on house credit and leverage their bets by 20, 30, or even 40
times their original sum.
What went wrong: After 1999, the casino owners began betting the savings of the
downstairs patrons (bank savings deposits and insurance investments allowed by the
repeal of Glass-Steagall) and bet this money on subprime CDOs, credit-default swaps,
derivatives, emerging market equities, commodities, etc. and used house credit to
leverage their bets far beyond the original amounts.
At first, winnings skyrocketed driven by the vast amounts of leveraged money available
from the repeal of Glass-Steagall, providing even more incentive for the casino owners to
borrow and wager even more. But, in 2007, the luck of the house changed
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Even in rigged games, if the sums bet are large enough, the losses can be staggering and
can break the bank, sic the house/casino. With bets leveraged 40:1, a fall of only 2.5 %
completely wipes out the bettor. A fall of 100 % takes out not only the bettor but the
enormous amount of credit extended to the bettor by the house.
Some of the losses incurred by subprime CDOs are as high as 90 %. The losses on
Lehman’s bonds are over 90 %. The reason why financial markets are in such trouble is
the trillions of dollars in credit extended by the banks is now gone and, as a consequence,
almost all banks are bankrupt.
With the casino now broke, governments have announced that they will guarantee the
value of all paper chips issued by the casino. Governments do not want bettors to cash in
their paper chips because they know the banks are broke and do not have the cash to
cover either their bets and/or the chips they issued.
Now the casino patrons are being forced to subsidize the casino while their governments
are frantically issuing more chips hoping that by so doing the now terrified patrons will
return to the now empty tables and continue to bet what little they have left.
Good luck.
THE END OF AN ERA
The failure of our credit based capital markets and our democratic process is
symptomatic of the changes taking place on our planet. The bankers’ system of paper
money has so undermined all commercial activity along with our political institutions that
the flaws of both are now obvious to all.
The bankers’ system of credit and paper money began in England in 1694, was moved to
the US in 1913 and from there spread to the rest of the world, much like STDs. Debt and
worthless money like sexually transmitted diseases are unintended results of initially
pleasurable activity, in this case, economic expansion.
Unfortunately, there is no penicillin that can cure our ailing economy; and the ones
responsible, the bankers, are mistakenly hoped by many to have the answers. They don’t.
They made the problems and will only make them worse. Wait and see.
At the end of eras, institutions are found incapable of providing the solutions and answers
they once did. Capitalism, which drove economic expansion for 250 years, is now
stumbling and has fallen on its own sword, debt, which it once used to enslave others;
and, democracy, previously the hope of mankind has become a caricature of the hope it
once promised.
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BETTER TIMES ARE COMING
The end of eras are always succeeded by the beginning of another. Endings, however, are
meant to clear away the old in order to make way for the new. We are seeing the collapse
of that which is familiar. It has been an extraordinary era and its ending will be no less so.
Buckminster Fuller in his introduction to The Critical Path in 1981 wrote:
Twilight of the
World’s Power
Structures
Humanity is moving ever deeper into crisis—a crisis without precedent.
First, it is a crisis brought about by cosmic evolution, irrevocably intent
upon completely transforming omnidisintegrated humanity from a
complex of around-the-world, remotely deployed-from-one-another,
differently colored, differently credoed, differently cultured, differently
communicating, and differently competing entities into a complete
integrated, comprehensively interconsiderate, harmonious whole.
Second, we are in an unprecedented crisis because cosmic evolution is
also irrevocably intent upon making omni-integrated humanity
omnisuccessful, able to live sustainingly at an unprecedentedly higher
standard of living for all Earthians than has ever been experienced by
any;
..that humanity now—for the first time in history—has the realistic
opportunity to help evolution do what it is inexorably intent on doing—
converting all humanity into one harmonious world family and making
that family sustainingly, economically successful.
In 1981, Fuller predicted our present crisis. He also predicted its successful outcome. We
are now in the crisis he predicted. You will not survive by hanging onto the old. You will
survive by letting go. Buy gold, buy silver, have faith. Better times are coming.
Note: I will be speaking at Professor Fekete’s last session of Gold Standard University
Live to be held in Canberra, Australia from November 11th to the 14th. The focus of the
session will be trading the gold and silver basis for profit. For further details, contact
feketeaustralia@yahoo.com.
Darryl Robert Schoon
www.survivethecrisis.com
www.drschoon.com

If you needed more evidence that the global capitalistic banking system has run it’s course in the current form look no farther than the golden jewel of the modern finance, Switzerland.

“It’s clear that we have a confidence problem,” Philipp Hildebrand, the Swiss National Bank’s vice president, said. “It is notably the two large banks that are affected.”

Switzerland has always been held in a higher regard in the global finance game, as a place that cash deposits were seen almost “As good as gold”. No longer.

The global financial system that has built the world you see before your eyes when driving down the road is dead.

Is Switzerland the next Iceland?

This weekends headline on the front of the Globe and Mail, “Wanted: A new financial world order”

Wanted by who? The elite bankers or the broke consumer who is going to lose his job. The elite will succeed in sweeping in new more commanding and enslaving banking laws over the ignorant masses.

This article plainly states that bond prices for junk status companies are selling at prices where “historical recovery rates” would indicate that buyers are virtually guaranteed getting their money back.

What the writers of this article fail to realize is that in a time of historic moves in the equites markets, historic intervention by governments and central banks around the world, is that “historical recovery rates” should be thrown out the window.

Capitalism is dead, a Capitalism 2.0 may arise but it will be much much different, right now we are headed towards intense Corporate Fascism instead(If not already there).

Full story

The first paragraph says it all:

“Confidence among U.S. consumers fell by the most on record and single-family housing starts hit a 26- year low, posing an increasing threat to household spending that accounts for more than two-thirds of the economy.”

And the cascading continues as things just get started…

Full story

Although there has been a rally in the US dollar recently, Peter still focuses on the long term picture and the fundamentals.