Aaron Ford

Using a line that is eerily similar to the one I used in my recent letter to the Georgia Straight, the Governor of the Bank of Spain Miguel Angel Fernandez Ordonez makes it very clear that he sees some very challenging times ahead for the world economy.

“The lack of confidence is total”

Dr. Schoon is one of my favorite writers, he hits hard in this piece. The American Empire is finished. What does this mean for Canada? My thoughts start with NAU and how crippled we will become by the USA collapsing.

THE AMERICAN DREAM
An obituary
The American Revolution was an extraordinary event. The idea that freedom was an
inherent right, that tyranny could be successfully opposed, that government could serve
the people, not the few, was truly revolutionary in 1776—as it is today.
The American Revolution, however, has run its course; and unless resuscitated and given
new life, the American dream and the dreams of America’s founding fathers will soon be
only a memory. Dreams rarely come to pass and those that do rarely last. The American
dream is no exception.
What happened in 1776 has been subverted by the passage of time and the inconstancy of
later generations. Those who rule America today have subverted the principles
enumerated in the US Constitution; principles the Founding Father hoped would guide
those who followed them through the crises yet to come.
The principles were not many, e.g. fiscal prudence, sound money, separation of church
and state and a limited military and limited government. But even those few and clearly
stated principles succumbed over the years to the imposition of policies that had given
rise to the need to revolt in 1776.
Now, in 2008, tyranny and government excesses are again upon America, but this time it
is by America’s own hand. The policies of King George III were no more egregious than
the policies of President George Bush II.— taxation without real representation, e.g.
TARP (80 % Americans opposed), the imposition of policies contrary to the will of the
people, e.g. US presence in Iraq and Afghanistan (70 % opposed), and the loss of
individual freedoms under the Patriot Act (60 % opposed).
The difference between 1776 and 2008 is that America is now tyrannized not by the King
of England but by its own government. Today, the US government does not represent the
will of the people. It represents instead the special interests that control the US
government through the buying of votes—America is not for sale only because it has
already been sold.
The difference between 1776 and 2008 is not only 232 years. It is the difference between
the dream of the Founding Fathers and the shadow of that dream in whose increasing
darkness Americans now exist.
THE FEDERAL RESERVE BANK IS THE REASON FOR AMERICA’S
FALL FROM POWER AND THE SOURCE OF ITS INCREASING PROBLEMS
Thomas Jefferson warned 200 hundred years ago that if private bankers were allowed to
issue America’s money, indebtedness, foreclosure and suffering would follow. Yet, in
2
1913, private bankers gained control over America’s money by the passage of the Federal
Reserve Act.
We are now suffering for ignoring Jefferson’s warnings. Jefferson was right in predicting
our problems but his words were overridden by those who had other plans for America,
plans that would increase their profits at the expense of the nation.
It is no accident America is now an empty shell of the great economic power it once was.
Bled dry by debt imposed by those whose sole intent was to profit, the US is now
bankrupt at a time it desperately needs the resources it no longer has.
The US Treasury is now empty except for IOUs and only if others continue to buy
America’s debts can America continue to go forward. Once we were creditors, now we
are debtors. America cannot escape the consequences of what has been done but we can
limit our problems if we undo their cause.
The Federal Reserve Act was enacted by Congress and signed into law by President
Woodrow Wilson who later bitterly regretted what he had done to America.
I am a most unhappy man. I have unwittingly ruined my country. A great industrial
nation is controlled by its system of credit. Our system of credit is concentrated. The
growth of the nation, therefore, and all our activities are in the hands of a few men. We
have come to be one of the worst ruled, one of the most completely controlled and
dominated Governments in the civilized world no longer a Government by free opinion,
no longer a Government by conviction and the vote of the majority, but a Government by
the opinion and duress of a small group of dominant men.
Woodrow Wilson, US President
The power of the Federal Reserve System—a system controlled by a small group of
dominant men—derives solely from is power to issue debt-based money in the form of
US dollars and to charge interest on their issuance. We are paying our jailors for our
enslavement and are fools for so doing. Who would have thought—except Jefferson.
FRANCE AND AMERICA’S FIGHT FOR FREEDOM
This article is being posted from Paris, France; a city and nation that supported America’s
War of Independence against England. Over time, Americans have forgotten this
important fact.
Following the Declaration of Independence of the thirteen colonies, the American
Revolution had been well received in France, both by the population and the enlightened
elites. The Revolution was perceived as the incarnation of the Enlightenment Spirit
against the “English tyranny”. Benjamin Franklin, dispatched to France in December of
1776 to rally her support, was welcomed with enthusiasm, and numerous Frenchmen
embarked for the Americas to help the war, motivated by the prospect of valor in battle

or animated by the sincere ideal of liberty and republicanism, like Pierre Charles
L’Enfant, and La Fayette, who enlisted in 1776.
http://en.wikipedia.org/wiki/France_in_the_American_Revolutionary_War
In the last two centuries, Americans have come to identify more with England (perhaps a
cultural variant of the Stockhausen syndrome) than with its first ally, France—the lure of
a good Burburry overcoming its love for the great cloak of freedom. Unfortunately,
Americans have forgotten their history and what they haven’t forgotten they have now
reinvented.
Freedom is always fragile and is always under attack from those who would enslave
others for their own ends, including profit; and, the present crisis is as threatening to
America as was the crisis of 1776.
Now, as then, the cause of America’s problem is English in origin. But this time the
cause is England’s central banking system, recreated on our own shores as the Federal
Reserve Bank, a private central bank masquerading as a US Federal government
institution.
But America does not own or control the Federal Reserve Bank. The Federal Reserve
Bank is owned and controlled by a small group of dominant men— private bankers who
through their control of the Federal Reserve now control America.
GOLD IS FREEDOM
THE 5 % SOLUTION
Gold is freedom because gold is the antidote to the debt-based money of private bankers
issued by central banks such as the Federal Reserve, debt-based money that has been
destroying America’s wealth, savings, and productivity for almost one hundred years.
Since the Federal Reserve began issuing debt-based US dollars 95 years ago, the US
dollar has lost 95 % of its value. The whiff of the dollar’s demise is now in the air and
unless something is done quickly, its end is imminent. There is only 5 % left to go.
Only if America returns to the principle of sound money enumerated in its Constitution,
will the abomination of unsound money and unsound governance end. If the Federal
Reserve is allowed to continue, so too will our problems and the now 95 year downward
spiral of America.
The choice is clear: End the Federal Reserve or the American dream will end. End of
story.
Five….four.…three….two….
fini

Darryl Robert Schoon
www.survivethecrisis.com
www.drschoon.com
blog www.posdev.net/pdn/index.php?option=com_myblog&blogger=drs&Itemid=81

I’m pleasantly surprised that the Vancouver’s largest newspaper by circulation featured my letter to the editor in their latest edition. I hope that it stimulates conversation over Christmas:(Article was edited, I agree with all edits)

My sources:
Recession Announcement

$32 billion BoC bank bailout

Columnist Gwynne Dyer needs to face financial realities

Although you are not a financial-news publication, your columnist Gwynne Dyer has provided truly dangerous and inaccurate information about the Canadian economy…Gwynne again tries his hand at feeding the sheep false economic fairy tales [“Small earthquake in Canada; not many hurt”, December 11-18], that “the economy is still growing” when, in fact, the Bank of Canada announced December 9 that Canada is entering a recession, indicating a contracting economy.

He also noted that “Canada is not in an economic crisis.” When are you planning to tell us there is an economic crisis, Gwynne? When we see food shortages and riots? While many were caught up in the coalition circus, our banks were bailed out, dumping $32 billion of unwanted “other” assets to us, the taxpayers, through the BoC balance sheet.

We are in the middle stages of a collapsing confidence game that relies on uninformed citizens and denial to survive. Backtrack to previous headlines denying economic problems such as a recession in Canada to see where we are headed: a global depression.

Instead of having your syndicated columnist collecting his cheque regurgitating quotes from the sellers of the confidence game, your readers would be much better prepared by reading about issues such as inflation, deflation, currency devaluation, and the BoC. Believe it or not, these issues are not a whole lifetime away now, as the U.S. situation will merely creep north very soon.

> Aaron Ford / Vancouver

Thanks for the update genius.

As earlier stated, global depression coming.

I find it amazing how very little if no coverage has been given to the bailout of the Canadian banks in a very similar fashion to what has happened in the USA. It just shows the level of apathy and blindness here in Canada. Embarrassing to say the least.

The twenty dollar bill you just pulled out of your pocket has had the assets behind that $20 switched from “high-grade” government debt, to “other” or “troubled” otherwise known as “junk” assets to get those assets off of the books of the private banks.

Oh well at least I’m doing well in my hockey pool(not in one), time to put the blinders back on and get back to being a slave.

Courageous job by John Paul Koning from Pollitt & Co., I commend you sir for writing this article. You are a true Canadian.

BoC’s mystery assets

The Bank of Canada’s balance sheet now lists 42% of its assets as ‘other.’ Canadians should be worried

John Paul Koning, Financial Post Published: Thursday, December 04, 2008

For most Canadians, bringing up the goings-on at the Bank of Canada is enough to inspire yawns or changes in conversation. And with a slew of vague acronyms like SPRA, TLF and SLF dominating the bank’s public documents, who can blame them?

Ignore it at your peril though, because our central bank is embarking on one of the largest and fastest revisions of its asset structure in history. Like a company, the bank has a balance sheet; assets on the one side and liabilities on the other. The majority of the bank’s liabilities are circulating notes held by the Canadian public. Pull $20 out of your wallet and you are holding not just a pretty piece of paper that buys stuff but a liability of our central bank. Collectively, there’s about $51-billion worth of cash circulating in the economy, all of which the bank is liable for.

A liability is only as good as the asset that backs it up. The $20 you’re holding is backed by various assets held in the vaults of the Bank of Canada in Ottawa. In times past the asset side of the bank’s balance sheet had a large gold component. Over the years gold lost its popularity with central banks and was replaced by government bills and bonds. As late as August of this year, the bank held assets of $22-billion in government T-bills and $31-billion in long-term bonds to back the cash in Canadians’ wallets, under their beds and in their deposit boxes.

This has all changed. Over the last three months, the bank has sold off a large part of its government T-bill portfolio and replaced it with assets classified as “other.” In August this “other” category comprised a miniscule 0.4% of the bank’s total assets, or about $200-million. It has since ballooned in size to an impressive $32.4-billion. Last week “other” surpassed government bonds to become the largest component of the bank’s assets, about 42% of the total. At the same time the bank has sold off $11-billion worth of government T-bills, which now make up just 15% of the bank’s assets, down from a hefty 41%.

The assets in the fast growing “other” category have been acquired through term purchase and resale agreements from the Big Six banks and other participants in Canada’s financial system. What is the category comprised of? No one really knows, but given the Bank of Canada’s disclaimer on such transactions, they could include any combination of government-guaranteed mortgages, asset-backed commercial paper, corporate bonds and anything classified as a non-mortgage loan, which could presumably include items like working capital loans and credit card debt.

The bank’s move mirrors some of the actions taken by the U. S. Federal Reserve since 2007. U. S. T-bills and bonds comprised 88% of the Fed’s assets last December. Since then they have been sold off and replaced by a range of unnamed assets, as well as questionable items like the remainder of Bear Stearns. Bills and bonds now make up only 21% of the Fed’s total assets.

From the perspective of Canada’s financial firms, the bank’s move brings cheers since it allows bankers to swap all sorts of financial assets off their balance sheet for cash, rather than having to offload them in often-illiquid markets. For the average Canadian who holds the Bank of Canada’s cash, the move may not be in their best interests. Our central bank has swapped a sure thing; a large chunk of liquid and non-volatile AAA-rated government debt, for a slew of “other” assets whose nature remains uncertain to everyone but bank insiders, assets which are inherently more volatile and less liquid than government debt. When the nature of any institution’s assets becomes “murkier” and more volatile, the nature of its corresponding liabilities is compromised. In sum, while the big banks may be happier, those dollar liabilities we all hold in our wallets don’t look so good anymore, thanks to the Bank of Canada’s massive balance sheet alteration.

The best way to understand what the Bank of Canada has done to its balance sheet is to imagine a private institution doing the same in a free market. If a manufacturing firm sold off 42% of its assets, say some factories, and replaced them with assets classified as “other,” you can be sure the holders of that firm’s liabilities — bankers, bondholders and the like — would raise the alarm bells, maybe even selling off their holdings. If the Royal Bank sold 42% of its performing loans and replaced them with mystery assets, it’s probable that a portion of depositors would get nervous, close their accounts, and go to the Bank of Montreal to do business.

Likewise, the Bank of Canada’s decision to lower the stability and transparency of its balance sheet may incite people to sell Bank of Canada liabilities. The result would be a drop in these liabilities’ value, which is just a different way of saying inflation, or a decline in the purchasing power of money.

Of course the bank doesn’t operate in a free market. As a monopoly provider of currency, Canadians are forced to hold some of its liabilities as a means of paying for the things they need. When the quality of the assets behind these liabilities is being degraded they can only bite their tongue rather than turn to another provider. This is unfortunate. Increased transparency and reassurances from the central bank that it is not sacrificing the integrity of our dollar with mystery assets just to help the big banks would help restore some trust. If not, its time to remind the bank that monopolies that don’t help Canadians deserve to be broken up.

-John Paul Koning is a stock market researcher at Pollitt & Co, a brokerage based in Toronto.

Wake up dummies. The whole “Coalition government” story was nothing but a scam played out by the politicians over the ignorant, idiotic masses. A theater to keep the meatheads talking while they bailed out the Canadian banks and furthered plans for the NAU. The coalition government does not and never did have a chance, it was engineered and you fools fell for it hook, line, and sinker. I read a Vancouver Sun headline today that said “Country gripped with fear” more like “Country gripped with stupidity”.

I stated this on CFOX Jeff Oneil’s morning show on Wednesday morning open phones edition. They responded by babbling some MSM headlines that they have been brainwashed with, such as “The Canadian banks are strong” The only thing I could do was laugh and move on.

Laugh and move on because people that stupid really don’t have a chance.

Canada Lost 70,600 Jobs, Most Since ‘82, on Factories

Mass layoffs coming.