Ron Paul Schools Bernanke on the Pure Fiat Currency Experiment

Privatized Banking, It's Not Just For Financial Reasons

Wachovia (now part of Wells Fargo), was discovered to have allowed billions of dollars of dirty money to be laundered for the Sinaloa cartel. (The amount is staggering: $378,000,000,000… which is about a third of Mexico's GDP; the bank paid out $160 million to the Feds to settle the issue without having to admit fault.) 

During the height of the financial crisis, the laundered drug money was, according to the Guardian, "the only liquid investment capital available to banks on the brink of collapse." Despicable. You don't have to support bankers. 

Ethically, morally, and financially, the best thing you can do is Become Your Own Banker. Ask me how.

Are the Federal Reserve and Its Primary Dealer Banks Manipulating the Stock Market? by Gary D. Barnett

The U.S. economy has continued to falter since the housing bubble burst. Virtually every part of the economy has worsened, and continues to do so. This is also true on a global scale. Whether discussing unemployment, housing, inflation, GDP, retail sales, etc., the picture is clear, we are still in a depression. Even though the economic picture is bleak, the stock markets have continued to go up in value during this period. Why is this happening?

After the market collapse of 2008 and 2009, where losses were generally around 55%, the markets have gone up substantially. During that same period were QE1 and QE2. This is no coincidence. Bernanke took full credit for the rise in the stock markets, and for good reason. The "Quantitative Easing" programs were structured to transfer money (out of thin air) from the New York Fed to its primary dealer banks. This is done when the Fed purchases treasury bonds from these dealers, some of which include Goldman Sachs and J.P. Morgan, along with 18 others. This process infuses the banks receiving this money with instant liquidity. During QE2 for example, from November 3rd of 2010 through June 30th of 2011, the New York Fed bought from its primary dealers $770 billion worth of treasuries, not the $600 billion it claimed. These banks acquired many of these treasuries during the bailouts by trading worthless securities for full value treasuries. This was, by the way, at taxpayer expense.

There is a direct correlation between these bond purchases and stock market performance. When QE1 ended, after an increase of approximately 90% in the markets, the markets began to fall. After falling about 23% from those highs, QE2 was announced, and began in November of 2010. The markets proceeded to go up again until QE2 ended in June of 2011. After the money stopped flowing, there was a sudden drop of over 18% from July through September of this year.

Now it gets even more interesting. In just the past two weeks, the stock markets have gone up about 11%. During that same time frame, the Fed has purchased $39.9 billion of treasuries from its dealer banks, in the same manner as it did during QE1 and QE2. If continued, this is an $85 billion a month pace, similar to that of QE2. But remember, there is no announced QE3, and no report that I’ve seen has mentioned anything about this bond buying, but it is going on nonetheless.

The only survivor left standing in this economy seems to be the stock market. This performance should not be happening given the dire economic conditions we’re in today. This tells me that when the money stops for good, and the markets crash, all else will follow. In my opinion, the New York Fed is doing everything possible to make sure that the markets remain somewhat stable, and it is taking a lot of money to keep up this sham. Every time the money starts flowing, the markets rise, and when the money stops flowing, the markets go down. There is now a clear pattern, and it is directly related to money pumping by the Fed, money that goes directly to its primary dealer banks. This allows the banks to make large trading profits running up the markets, and allows the government to point to the markets as a sign that things aren’t so bad after all. This is a lie!

By going to this page of the New York Fed Permanent Open Market Operations, you can easily see how many purchases, and in what amounts, have taken place in just the past two weeks. Then compare what has happened in the stock markets over this same time frame. The same can be done for QE1 and QE2. This direct correlation is not accidental nor is it coincidental. Something is very wrong here, and the Federal Reserve is smack in the middle of this fraud.

The Federal Reserve System is not only destroying the value of our hard earned money, but it is involved in lies and manipulation, and is cloaked in secrecy. It is bailing out banks all over the world with fake money. The Federal Reserve is rotten to the core! How could any sane people allow one entity, a very corrupt one at that, to control the entire monetary system? That is a travesty, but it can be remedied. The Federal Reserve should be abolished immediately, and those running it should be prosecuted for their crimes! If it is not abolished, the value of our hard earned money will simply disappear into the dustbin of history, and most will be left with nothing!

October 17, 2011

Gary D. Barnett [send him mail] is president of Barnett Financial Services, Inc., in Lewistown, Montana.

Copyright © 2011 by LewRockwell.com. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

Ignorance Enables Corruption

‎"When you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal not in goods, but in favors; when you see that men get rich more easily by graft than by work, and your laws no longer protect you against them, but protect them against you… you may know that your society is doomed.
–Ayn Rand, novelist & philosopher, author of Atlas Shrugged

Our society has passed the tipping point to where I believe Ayn Rand's statement 50 years ago has now come true.  I think the reason is not so much the reluctance for to look at history but really it's the belief that the history we've been told is actually correct. What's really eye opening for me is the perspective from which history has been written and why our govt continues to approve textbooks that indoctrinates new generations of tax paying citizens who fail to grasp the money power system they've been born into and won't ever be able to comprehend. 

As a kid growing up, I never understood why the price of movie tickets and my favorite candies would rise over time. If we were taught by our parents and through our school system the history of money, it would be very easy for us to understand why wars are fought, socialism fails, and ultimately who is responsible for it all. Those that control the money supply control nations and individuals alike. Debt is another form of slavery. Here in the United States we are forced to accept our income paid in dollars and use dollars to pay debts private and public. But what ensures the value of that dollar will buy the same things tomorrow that it did today when more can be printed at will reducing the value of each dollar we earn? 

Our monetary system is corrupt. Where we need to start is by taking back the power of our money supply from the Federal Reserve (which is run by unelected central bankers) while also teaching people how to set up their own financial systems on an individual level so they never have to rely on banks again. We have to do this as country, too, which for anyone who reads the Constitution will know it's why the founding fathers gave Congress the ability to create it's own debt free money. 

The sad thing is that the bankers are always fighting to have control over our money and ultimately, that's exactly what happened in 1913 with the passing of the Federal Reserve Act. We gave the power to control our money supply and set interest rates to the bankers. Is it any wonder what happens when bankers acquire the ability to control nations and individuals through debt? These international bankers rule unseen because they belong to no party or nation. They cannot be removed or wiped out because they were never elected in the first place but we should know how they operate so we can better identify a wolf in sheep's clothing in order to keep them out of government and from controlling everything once again. 

Schools should teach math, science, music/arts/literature, and most importantly, in order to keep a check on tyranny, we should be taught the history of money. It's the only historical perspective that really matters. The information is out there but people need to learn to think for themselves and stop following political leaders who are taught the exact the same things we learned in schools and from our parents. We have the blind leading the blind...and the bankers keep on winning unbeknownst to most everyone who fails to understand the history of money.

For more more information on what you can do to raise your awareness and how to protect yourself and your families wealth, visit JLMWealthStrategies.com or call 855-254-5433 and ask to speak to John Montoya. 

For an additional article on the US Dollar and inflation, read what John Williams has to say.  Click here.

Final note, it should be added that the title of this blog post comes from Steve Roeder, host of radio show Innovators Radio.  I've heard him say it countless times.  If you aren't connected to him on Facebook, do so.  And if you aren't connected to me on Facebook, connect with my JLM Wealth Strategies page as well...

What Is Your Risk Management Plan For The Next Market Downturn?

Peter Schiff has said,"Within the next several years we are going to have the real economic crisis that we didn't have in 2008 ... Every time the government stimulates the economy to create an artificial boom to postpone the pain they make the inevitable bust that much worse."

With QE2 coming to an this month and QE3 becoming inevitable even if it's given a different name, the question is how long can a false recovery last? It could be a few years or maybe a decade or longer. There are no quick and painless solutions. Certainly we cannot expect the people responsible for creating the problem to be the ones responsible solving them.

The bigger question is: Who has the bigger problem: our government or us? When, not if, the economy collapses, will you have the correct risk management plan in place? Relying on our government to protect us is not option. The government will be too concerned about protecting itself and seizing more power from the people.

If you read this blog, I urge you to start taking steps to protect your savings. Here's an additional article written by Peter Schiff titled End Game. I encourage you to read it and watch the very short video below.

Call or email today to request a free report: (800)208-6141

John Montoya
JLM Wealth Strategies, Inc.
john@JLMws.com
(925) 386-6639 Office
Authorized Advisor-Bank on Yourself®
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