Thursday, February 19, 2009

One Strike You're Out

In normal times we give people more than one chance to succeed because we used to be a wealthy nation and could tolerate some failures even in our government. But we are in the first year of the Greatest Contraction since 1929-1939. Our new President had one chance to solve America's problems and what he proposed will not work.

Barack Obama decided to borrow trillions of dollars and give that money to the people who destroyed our economy and also to set aside part of that money to reward his voters.

The Stimulus was not intended to create jobs in 2009 even though we lost 1,600,000 jobs in December and January because most of the spending is scheduled to take place from 2010 to 2012. Some critics have said that the Stimulus money will be used to create a political force for the 2010 and 2012 elections, One of the reasons why Senator Gregg declined to accept his nomination to be Commerce Secretary was the proposed transfer of control of the 2010 census from Commerce to the White House. The Senator did not want to participate in political fraud with a fudged census packing the House of Representatives and the electoral college.

The Stimulus Bill has a provision that will help the President raise money from men under criminal investigation. The Stimulus bill that nobody read had an interesting provision that would benefit Mr Obama's past and future donors on Wall Street. It is the RAT (Recovery Accountability and Transparency Board). The RAT Board oversees federal inspector generals who are in charge of overseeing government agencies. The RAT Board can stop any inspector general from embarrassing the President and his friends on Wall Street.

Personally, I think Mr Obama is dreaming if he thinks he is going to even be a candidate in 2012 after the food riots shake this country to its roots. Gerald Celente is predicting a dramatic increase in crime and even a surge in kidnappings. This failure will soon become evident to even the most partisan Democrat. I am reminded of something Malcolm X said the week before his assassination.

“Why is it that you do and do for the Democrats and they don't do for you? Why is that? I will tell you why. Because you are a chump.”

Of course the same can be said of the Republicans. John McCain had a fund raiser hosted by the Rothschilds in March of 2008.

It was evident to those of us who opposed George Bush's invasion of Iraq that the Iraqis had no Weapons of Mass Destruction and had nothing to do with 9-11. It is equally obvious to anyone who reads and understands what he or she reads that the Obama plan will not work and was never intended to solve our real problems which are unemployment, economic contraction and a crashing dollar that will transfer all of our real wealth to the international elites who supported Obama and McCain in 2008.

Consider the following:

Wholesale prices went up 8/10ths of one percent last month. Prices are starting to go back up and will take interest rates up with them.

The latest Treasury auction was a disaster. Interest rates on Treasuries are already beginning to creep up.

China, India, Japan, England and OPEC can no longer buy our Treasuries so interest rates will have to go op, up and away to attract buyers for several trillion dollars. in new US bonds needed to fund the deficit of 1.2 trillion dollars, the 800 billion dollar Stimulus and the continuing Bailout of both Wall Street and home mortgages. A correspondent from Time magazine said this will be the first of a series of Stimulus and Bailout bills. All of the above is to be financed by borrowing at higher and higher interest rates.

70% of all homes on foreclosures have not been listed. There are 5,162 homes in foreclosure in San Jose California listed on Yahoo real estate. So if only 30% are being listed by the banks, then we can safely say that there are more than 15,000 homes in foreclosure in the town where I live.

I talked to two women who are illegal aliens but did not let that stop them from voting for Obama. They said they expect the President of the United States to pay their mortgages. That was before Obama announced his solution to the home mortgage crisis.

So if 9,000,000 homes are to be rescued by 75 billion dollars left over from TARP how much relief will each recipient get? A little over a thousand dollars. And, if another 5 to 6 million people lose their jobs, who will pay for their mortgages? Clearly we are going to have to borrow a lot more money at much higher interest rates to meet Obama's campaign promises.

The current US debt ceiling is 11.3 trillion dollars. In my New Years predictions I said the debt ceiling would go to 15 trillion dollars this year. At the current rate of growth in debt, we could easily expect to have a 20 trillion dollar debt some time in 2010.

Ben Bernanke is a student of the Great Depression. He said the lesson he learned is to overcome the contraction in the money supply which explains why the monetary base is growing at 105% and the broader M3 is growing at 15% a year. Bernanke believes he can use the same methods the Federal Reserve used in 1980 to solve the problem of inflation. At that time the Federal Reserve raised interest rates until home mortgages were 15%.

If Bernanke raised interest rates to 15% in 2010, our 20 trillion dollar debt would soon cost us 3 trillion dollars a year to finance. This can easily be done by simply tripling the income tax collected. from a trillion to three trillion dollars a year. Of course that would leave the average American with only a few dollars a week in after tax income to pay for food, clothing, shelter, insurance, transportation, education and other necessities.

Even a perfunctory examination of the facts will tell us that none of these plans will work nor were they even designed to work. So why do they bother? My conclusion is that the real plan is something entirely different.

The most likely possibility is that Wall Street is planning to eliminate democracy after they have stolen all of our money. The Federal Reserve announced in 2005 that they would no longer publish the M3 total money supply figures. They knew then that they would be printing lots of money to cover up what they had stolen from us.

And Wall Street has been busy eliminating freedom through the Patriot Act, the Military Commissions Act of 2006 and executive orders.

We might not see the future but we can clearly see what Wall Street has planned for us and that it is not good.


To read about the RAT Board please go here:

To watch a video on the Bailout and the Mortgage subsidy please click on this CNBC ERL:

To read Paul Craig Roberts explain why the Bailout and Mortgage won't work please go here:

To read about the increase in wholesale prices please go here:

Saturday, February 14, 2009


December job losses have been revised upwards by 53,000. And January's losses were actually understated by 118,000 to account for seasonal adjustments. That brings the total two month job loss to 1,175.000. At that rate creating 3.5 million jobs over the next two years provided you believe the hype about the Stimulus Bill will not stem the rising tide of unemployment. In 12 months we will lose more than 6,600,000 jobs.

Paul Craig Roberts, Assistant Treasury Secretary in the Reagan administration, has pointed out the difference between the Labor Department's Household survey and their Payroll survey. The Household survey polls 60,000 homes to determine the number of people who have jobs. The Payroll survey counts the number of jobs. Mr Roberts points out that some people have two or more jobs so the two surveys do not give the same results. The Household survey puts total job losses for December at 806,000 and 832,000 for January. That is a two month total of 1,638,000 or more than 7.2 million at an annualized rate or 3.7 million more jobs than promised by that Stimulus Bill over the next two years.

But John Williams at has revealed a darker side to those unemployment figures. In 1994 the definition of unemployment was changed to exclude longterm unemployed workers who have given up looking for work because they could not fins a job after one year of searching. If you use the original definition, the United States unemployment rate for December was 17.5% and 18% for January.

This requires some explanation for people under 50. I live in Silicon Valley. I know lots of people over 50 who cannot find work. I also know two men, one white and one black, recently hired at $12 an hour. It should be noted that $12 an hour is not a lot of money in Silicon Valley. The last time I looked a 422 square foot studio apartment can be rented for a mere $950 a month. I also met a driver for a document shredding company who told me 60% of their drivers had been laid off permanently.

I also know a lot of people over 50 who have been laid off and bo longer look for work. They would like to work but it is a waste of time for them to even apply for a job. All of the high tech jobs are going to younger people from overseas with H1-B visas who work for far less than do Americans. In the best of times men and women over 50 have a hard time finding work at their old pay. In these worst of times young American college graduates can't find work. You can see them on TV being asked how they plan to pay back their college loans.

Some of you might be astonished to hear that the ultra-liberal Robert Reich was Labor Secretary in 1994 when unemployment was re-defined so Americans would be excluded from the unemployment count. My conclusion is justified that neither political party cars about us enough to even register the pain of our losses.

My regular readers are aware of my belief that Wall Street's long term goal is to permanently cut our wages in half because they want to steal our money and it is so easy to control impoverished people. To maintain control they cannot allow us to even think about the millions of jobs going to legal and illegal aliens.

So why must they lie? They know that if we knew the truth and were allowed to discuss it on TV, on radio and in the press that their government will not stand. The government Wall Street created for us will collapse because it is evil and deserves to die.


Please do yourself a favor and study John Williams work on real unemployment and money figures. He says the Monetary Base os growing at an annualized rate of 105%:

To read Paul Craig Roberts on unemployment please go here:

This is a news story on the January Jobless from BLS.

To read a news story about the ADP January jobless figures please go here:

Sunday, February 08, 2009

The Bulgarian Strategy And Other Advice

Previously, I have said that the United States entered World War I so we could make the Great War last longer. This made it possible for us to bankrupt our allies England, France and Russia. It also enabled the Jewish Communists to overthrow the Social Democratic government of Russia and for England to grab Palestine from Turkey on behalf of the Zionists.

A little known fact of World War I was that Bulgaria was a German ally. The English knew this and declared war on Bulgaria. The Bulgarian ambassador to the United States must have been very grateful that the Americans forgot Bulgaria when the Congress voted to declare war on Germany and Austria. The Bulgarian ambassador wisely decided to take down the sign and the flag in front of the embassy. He spent the whole war years in the relative safety of Washington.

I realize that this Bulgarian option might not be a good strategy for many of you. Bur consider this: There are only 12,800 FBI agents. However, they are hiring an additional 800 men and women. Wall Street must have reason to believe they will need the additional help. Your name is in their databases. But there is a limit to how many of us they can arrest without trial so you might seriously consider taking a low profile until what I have called the Rebellion of the Spirit takes place. As I have been saying for some time, the human spirit will rebel at the dark future Wall Street has planned for us.

This lying low phase might last for more than 3 to 6 months or even a year. During this time you need to prepare yourself, to relocate if need be, to protect your investments and to make a network of friends in whose hands your life will be entrusted. Gardens might be an extremely valuable part of your future.

We have signs of impending disaster, Forbes magazine has reported that the recent auction of Treasuries was a disaster and that interest rates are creeping back up. China, Japan, Russia and OPEC are no longer running huge surpluses so they can no longer afford to buy our Treasury bills and bonds. And at this time the Obama administration wants to triple or quadruple the sale of new Treasuries. The increased supply will raise interest rates and doom the dollar.

Currently, the US debt ceiling is 11.3 trillion dollars. The deficit is 1.2 trillion dollars. Add another 800 plus billion for the Stimulus bill. Then there is the continuing Bailout. Geithner will announce the Treasury's new mortgage Bailout plan next week. That will be another trillion dollars or more. I saw a correspondent from Time magazine on a PBS talk show saying that there will be additional Stimulus and Bailout bills. My New Years prediction that the US debt ceiling will reach 15 trillion dollars before the end of 2009 looks like a safe bet.

There is another bad sign. The new Director of the Office of Management and Budget is Peter Orszag. He was a protege of Robert Rubin as were Ben Bernanke and Larry Summers. Peter Orszag's accomplishments include being an advisor to Iceland's Central Bank. As bad as things are going for Iceland, most employers would refuse to hire someone with a proven track record of failure but that is no barrier to finding work in Washington.

Would it be impolite of me to point out that Robert Rubin, Timothy Geithner, Larry Summers, Peter Orszag, Ben Bernanke and the previous four Chairmen of the Federal Reserve Bank (dating back to 1970) were Jewish? What are the odds that the next 9 Americans you meet would be Jewish? If we assume that 10% of all white men in America are Jewish, then the odds would be 10 to the ninth power which is a one followed by 9 zeros (1,000,000,000) or one in a billion. If we add Rahm Emanuel as Chief of Staff, then the odds are one in ten billion.

I should point out that the Federal Reserve system was created by the Warburg brothers. As I have said before, we do not have a debt free money system. We are required to create a debt before we are allowed to create new money. We have Federal Reserve Notes instead of the Treasury Notes that Presidents Lincoln and Kennedy wanted. But they were assassinated and so we have a fictional government debt rapidly approaching 15 trillion dollars. With interest rates creeping up we could soon face 1.5 trillion dollars annual interest payments to the banks only because we gave them the license to print our money. You might be too young to remember 1980 when Jimmy Carter's Federal Reserve bank introduced the 15 ½ percent home mortgage interest rate. We could see those days again.

As I said in many previous essays, the system is designed to transfer all wealth from those of us required to work for a living to the few who were given the divine right to print our money by the Federal Reserve Act of 1913. The Bailouts increase the debt and are designed to hasten the day when all real wealth in America will belong to Wall Street. So do not expect the Bailout to work to your benefit.

I should also point out that when Geithner announces his rescue plan for home mortgages next week the number of home foreclosures on the market could triple. 70%of the foreclosures are not currently on the market. The banks are probably waiting for Geithner to give them taxpayer money to write off part of the losses they will have to take at auction. If 10% of the homes are, as planned, rented out for a couple of years. We will still triple the number of foreclosed homes on the market. Currently, Yahoo real estate lists 4,877 homes in foreclosure in the city of San Jose California. Doubling that number gives us 9,754 homes to be auctioned off. Tripling that number will give us 14,631 homes to be sold in just one city.

There are not that many potential buyers in the market so the FEDS might have to rent out more than ten percent of the foreclosed homes. This might be bad news for the neighbors as the federal government will rent to any idiot or troublemaker unlike most landlords. But, if you have been following my advice, you would have already sold all California real estate.

This summer might be a good time to buy a home with a garden in a safe area on a 30 year fixed loan. Hyperinflation will soon lower the real cost of your mortgage in inflation adjusted dollars to almost nothing. On the other hand if you want to pay cash, you can wait for hyperinflation to lick in. Home mortgage interest rated could easily reach 15 or 20% and kill home sales and home prices.

I should repeat that I am not an investment advisor and am not giving you financial advice. Please consult a professional before making major life decisions.

2009 will be the Year of the Decision. Lay low if that works got you. I am hopeful for a peaceful Rebellion of the Spirit. The masses are still enthralled by the new Obama administration. I had been thinking of writing an essay entitled 90 Days And Out, because that is how long it will take for the public to figure out the Bailouts will not work and were designed by Wall Street to steal what little wealth they have not yet stolen. April 20th is the target date for the beginning of the end of our enslavement to the New York banks.

After that time things will unravel so quickly that you might want to have completed your relocation efforts. If you cannot just pack up and leave, you might consider finding an escape route to a safe house now rather than after the food riots start. Wall Street might have to start clamping down on dissent as they think the townsfolk will chase them with pitchforks as they did in the 1930s Frankenstein movies.

I do not want to predict events beyond the next 90 days except to repeat my earlier forecasts that our after tax real wages will be permanently cut in half and that our debt ceiling will reach 15 trillion dollars this year. We will soon surpass Egypt and Sudan on the list of nations in the rank of debt to GDP (Gross Domestic Product) which measures our total production of goods and services.

But why would you expect to have a government better than Egypt or Sudan? Our government has been seized by a foreign power and we are now all enemies of the state.


To read about Peter Orszag please go here:

To read the Forbes magazine article about the disaster at the recent Treasury auction please go here:

To read about the glut of foreclosed homes being held off the market please go here: