Alex welcomes back to the show Joel Skousen, founder and chief editor of World Affairs Brief, a weekly news analysis service. Mr. Skousen is a political scientist by training who specializes in the philosophy of law and Constitutional theory. He is also a designer of high security residences and retreats. Joel served as a fighter pilot for the US Marine Corps during the Vietnam era. During the 80’s he took a leave of absence to serve as the Chairman of the Conservative National Committee in Washington DC and concurrently served as the Executive Editor of Conservative Digest. http://www.joelskousen.com
The dark side of government has grown to be larger than the white side.
How CIA agents and politicians get blackmailed.
“They’ve got to make sure that you’re morally corruptible.”
“They like to have people who have a clean cut appearance who can fool other people,
but they want to make sure they’re corruptible.”
Social Engineering is the manipulation of people to act in a programmed way. These ‘engineered’ actions may or may not be in the best interest of the people. However, the ‘social engineering’ of the public’s thoughts and actions is always of benefit to the insiders.
“Everything that is expected from an ordinary weapon is expected from a silent weapon by its creators, but only in its own manner of functioning. It shoots situations, instead of bullets; propelled by data processing, instead of a chemical reaction (explosion); originating from bits of data, instead of grains of gunpowder; from a computer, instead of a gun; operated by a computer programmer, instead of a marksman; under the orders of a banking magnate, instead of a military general. It makes no obvious explosive noises, causes no obvious physical or mental injuries, and does not obviously interfere with anyone’s daily social life. Yet it makes an unmistakable “noise,” causes unmistakable physical and mental damage, and unmistakably interferes with daily social life, i.e., unmistakable to a trained observer, one who knows what to look for.
The public might instinctively feel that something is wrong, but because of the technical nature of the silent weapon, they cannot express their feeling in a rational way, or handle the problem with intelligence. Therefore, they do not know how to cry for help, and do not know how to associate with others to defend themselves against it.
When a silent weapon is applied gradually, the public adjusts / adapts to its presence and learns to tolerate its encroachment on their lives until the pressure (psychological via economic) becomes too great and they crack up.
Therefore, the silent weapon is a type of biological warfare. It attacks the vitality, options, and mobility of the individuals of a society by knowing, understanding, manipulating, and attacking their sources of natural and social energy, and their physical, mental, and emotional strengths and weaknesses.”
We AMERICANS are being psychologically manipulated to accept and even embrace social, political and economic realities that are the opposite of our heritage of freedom.
All freedom loving people are the TARGET
“the great body of the people, mentally incapable of comprehending the tremendous advantages that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”
During the American Civil War european international banksters, in private letters, revealed their brazen plan to attack American Constitutionally protected rights. Socially engineering support for a private banking cartel that would control both our political and our economic system. Their goal was to replace the old system of slavery with an even more diabolical system of slavery. This criminal oligarchy, which is still attacking ‘free people’, seeks to enslave all of humanity, by deceptive methods, replacing the outdated slave ownership model that could only make slaves of a smaller number of people.
Read these letters of conspiracy
The Hazard Circular:
Slavery is likely to be abolished by the war power and chattel slavery abolished. This I and my European friends are in favor of, for slavery is but the owning of labor and carries with it the care of the laborers while the European plan, led on by England, is that capital shall control labor by controlling wages.
The great debt that capitalists will see to it is made out of the war, must be used to control the volume of money. To accomplish this the bonds must be used as a banking basis.
We are now waiting for the Secretary of the Treasury to make this recommendation to Congress.
It will not do to allow the greenback, as it is called, to circulate as money any length of time, as we cannot control that.
But we can control the bonds and through them the bank issues.
The following is a letter dated June 25, 1863 to the banking firm of Ikleheimer, Morton and Vandergould from the Rothchilds’s firm, located in London:
A Mr. John Sherman has written us from a town in Ohio, U. S. A., as to the profits that may be made in the National Banking business under a recent act of your Congress, a copy of which act accompanied his letter. Apparently this act has been drawn upon the plan formulated here last summer by the British Bankers’ Association and by that Association recommended to our American friends as one that if enacted into law, would prove highly profitable to the banking fraternity throughout the world.
Mr. Sherman declares that there has never before been such an opportunity for capitalists to accumulate money, as that presented by this act and that the old plan, of State Banks is so unpopular, that the new scheme will, be mere contrast, be most favorably regarded, notwithstanding the fact that it gives the National Banks an almost absolute control of the National finances. “The few who can understand the system,” he says, “will either be so interested in its profits, or so dependent on its favors, that there will be no opposition from that class, while on the other hand, the great body of the people, mentally incapable of comprehending the tremendous advantages that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”
Please advise us fully as to this matter, and also, state whether or not you will be of assistance to us, if we conclude to establish a National Bank in the City of New York. If you are acquainted with Mr. Sherman (he appears to have introduced the National Banking act), we will be glad to know something of him. If we avail ourselves of the information he furnished, we will of course make due compensation.
The following is a printed circular regarding the organization of a national bank. The circular was enclosed in the reply dated July 5, 1863 from Ikleheimer, Morton and Vandergould to the Rothschilds:
We have had so many inquiries of late as to the method of organizing national banks under the recent act of congress, and as to the profits that may reasonably be expected from such an investment, that we have thought it best to issue this brief circular as an answer to all questions of our friends and clients:
1. Any number of persons, not less than five, may organize a National Banking Corporation.
2. Except in cities having 6,000 inhabitants or less, a national bank can not have less than $1,000,000 capital.
3. They are private corporations organized for private gain, and select their own officers and employees.
4. They are not subject to the control of the state laws, except as congress may from time to time provide.
5. They can receive deposits and loan the same for their own benefit.
6. They can buy and sell bonds, and discount paper and do a general banking business.
7. To start a national bank on the scale of $1,000,000 will require the purchase of that amount (par value) of U. S. Government bonds.
8. U. S. Government bonds can now be purchased at 50 per cent discount, so that a bank of $1,000,000 capital can be started at this time with only $500,000.
9. These bonds must be deposited with the U. S. Treasury at Washington, as security for the national bank currency, that on the making of the deposit will be furnished by the government to the bank.
10. The U. S. Government will pay 6 per cent interest on the bonds, in gold, the interest being paid semi-annually. It will be seen that at the present price of the bonds, the interest paid by the government, will of itself amount to 12 per cent in gold, on all the money invested.
11. The U. S. Government, under the provisions of the national banking act, on having the bonds aforesaid deposited with its treasurer, will on the strength of such security, furnish national currency to the bank depositing the bonds, to the amount of 90 per cent of the face of the bonds, at any annual interest of only ONE per cent per annum. Thus deposit of $1,000,000 will secure the issue of $900,000 in currency.
This currency is printed by the U. S. Government in a form so like greenback money, that many people do not detect the difference, although the currency is a but a promise of the bank to pay—that is, it is the bank’s demand note, and must be signed by the bank’s president before it can be used.
The demand for money is so great that this currency can be readily loaned to the people across the counter of the bank at a discount at the rate of 10 per cent at 30 to 60 days’ time, making about 12 per cent interest on the currency.
The interest on the bonds, plus the interest on the currency which the bonds secure, plus the incidentals of the business ought to make the gross earnings of the bank amount to from 28 to 33 1/3 per cent. The amount of dividends that may be declared will depend largely upon the salaries the officers of the bank vote themselves, and the character and rental charges of the premises occupied by the bank as a place of business. In case it is thought best that the showing of profits should not appear too large, the now common plan of having the directors buy the bank buildings and then raising the rent and the salaries of the president and cashier may be adopted.
National banks are privileged to either increase or contract their circulation at will and, of course, can grant or withhold loans as they may see fit. As the banks have a national organization, and can easily act together in withholding loans or extending time, it follows that they can by united action in refusing to make loans, cause a stringency in the money market and in a single week or even a single day cause a decline in all the products of the country. The tremendous possibilities of speculation involved in this control of the money of a country like the United States, will be at once understood by all bankers.
National banks pay no taxes on their bonds, nor on their capital, nor on their deposits. This exemption from taxation is based on the theory that the capital of these banks is invested in U. S. securities, and is a remarkable permission of the law.
The secretary may deposit the public money with any bank at will, and to any amount. In the suit of Mr. Branch against the United States, reported in the 12th volume of the U. S. Court of Claims Reports, at page 287, it was decided that such “Government deposits are rightfully mingled with the other funds of the bank, and are loaned or otherwise employed in the ordinary business of the bank, and the bank becomes the debtor of the United States precisely as it does to other depositors.
Requesting that you will regard this circular as strictly confidential, and soliciting any favors in our line that you may have to extend, we are, etc. 
I have warned for some time that government was eyeing up pensions. There is about $19.4 trillion dollars in private pension funds. How will they justify taking over these funds to the people? This is the question debated in secrecy behind the curtain. I have warned that if government seizes pension funds, it will come after 2015.75. The Supreme Court, without any justification constitutionally, just determined how that will be accomplished.
“Why have a totally fraudulent financial system? Dr. Black, who is an expert in white-collar crime, says, “It’s hard to make money with competition. It’s really hard. People who have never been in business don’t understand how hard real competition is. Real competition makes it hard to prosper, but if you rig the system, it makes it easy. The reward for rigging is phenomenal. We are talking every year, hundreds of billions of dollars in bonus compensation. It’s far more than their straight salaries, and it is going to folks that it wouldn’t go to them if they didn’t rig the system. And, no one is prosecuted. They don’t even give back the fraud proceeds, even when they catch them red-handed.”
This means that when banks donate to top candidates in both parties, they are donating fraudulent banker profits. So, both the political system and the financial system are based on fraud. Can fraud destabilize the entire system? Dr. Black, who is also a professor of both economics and law at UMKC, says, “Obviously, it is the worst possible thing to do in terms of stability. The way you rig these things doesn’t just make you wealthy, it creates asset bubbles, massive asset bubbles, the biggest in history...”
“Truth is like poetry, and most people f*%*ing hate poetry.” ‘The Big Short’ movie
Control fraud occurs when a trusted person in a high position of responsibility in a company, corporation, or state subverts the organization and engages in extensive fraud for personal gain. The term Control fraud was coined by William K. Black to refer both to the acts of fraud and to the individuals who commit them.
You’re probably thinking that inflationary devaluation of your savings or paying negative interest rates on cash deposits is about as far as government is willing to go in its efforts to keep funding its debt-laden endeavors. They certainly wouldn’t consider touching the bank accounts of hard working Americans. Only the Europeans have the audacity to go after the savings of the average depositor.
Well, the Europeans and apparently now the Georgians, too. And we’re not talking about the western backed country that went to war with Russia in recent years.
We’re talking about the U.S. state that claims “Wisdom, Justice, Moderation” as its motto.
According to Simon Black at Sovereign Man, the State of Georgia has taken the unprecedented step of lowering the threshold on inactive or dormant bank accounts to just twelve months. What that means to average Georgians is that if you fail to utilize your account within one year your deposited funds will be confiscated by the state.
Georgia’s Disposition of Unclaimed Properties Act sets the threshold as low as one year.
In other words, if you have a checking account in Georgia that you haven’t touched in twelve months, the state government is going to grab it.
So much for setting aside money for a rainy day and having the discipline to never touch it.
If you’ve locked away money for your children’s savings or unforeseen emergencies, your government might be sharpening its knives ready to dig in.
And just like central bank policies punish savers with interest rates that don’t come close to keeping up with inflation, these policies provide disincentives for people to be responsible and save money.
It’s just another example of how the entire system is rigged against the individual… and all the more reason to divorce oneself from it. Physical gold, anyone?
Governments on the local, state and federal level are getting desperate amid underfunded retirement plans and bloated budgets. Going forward they’ll have no choice but to get more and more creative at how they “generate” revenue.
We hope you’re keeping an eye on that IRA. You haven’t really touched that for twelve months either, have you? Congress has already held hearings on whether or not theyshould reappropriate retirement savings and pool them into a government run investment fund. You know, kind of like Obamacare.
Or how about that parcel of land you own out on the countryside for weekend camping trips and hunting? You haven’t been out there for a while, nor have you really built anything on it, which must mean you’re not using it anymore…
There is historical evidence that suggests that government, when left with no way to pay for their massive budgets and spending, will resort to extraordinary methods to ensure the money keeps coming in to State coffers.
As the Roman empire was collapsing because of unfunded pension liabilities for its military the government devalued its currency by removing 90% of the silver content from its coins. Roosevelt confiscated gold during the Great Depression and imposed stiff penalties for those who didn’t comply. Struggling to keep up with its massive budget deficits, last year France passed their “millionaire tax,” which authorized the government to levy a 75% tax on companies that pay out more than €1 million in salaries.
Devising innovative ways to separate the citizenry from its money is business as usual within legislative institutions.
Georgians who haven’t touched their accounts since last year should either withdraw their money or, as government officials and banks would prefer, go spend it on something and put that cash to work. Otherwise you face the real possibility of having those assets seized.
As for the residents of the other forty-nine states, keep an eye on what your respective state legislators are doing.
Chances are a lot of light bulbs in Capital cities around the country just popped on.
Bailout is the tale of an unemployed Chicago lawyer who stops paying his mortgage and enlists four friends (also unemployed) to join him in a Winnebago trip to Las Vegas. Their plan is tear a page out of Wall Street’s playbook and piss away the bank’s money by gambling and partying their asses off. Along the way our gang discovers first hand how Americans have been adversely affected by the financial crisis, principally through foreclosures. S ee first-hand how politically powerful banks are systemically eliminating America’s middle class through off-shored job losses and fraudulent home foreclosures.
An enigma wrapped in Doc-hybrid form, Bailout is a social documentary that explores American anger with the Wall Street elites who survive and thrive on their cancerous system of bailouts, fraud, and political corruption that actively work in concert to destroy Main Street. From entry-level workers in northeast Indiana RV factories to Congressional leaders to rock stars, Bailout tells the story of recent American economic events through the mouths of people who labored through thick and thin–what it was and how it has affected us all. The film focuses on unchecked financial fraud and the refusal to punish such fraud that lies at the root of our nation’s illness, examined through the well informed filter of its lead character, John Titus and his “dukes of moral hazard”. While many financial documentaries have done a great job of enraging audiences and leaving us shaking our heads, Bailout is a call to action inspiring Americans to exercise their right to speak out against injustice and take their grievances to the streets until their voices are heard. The film features well-known personalities from both sides of the political aisle leveling blistering attacks on the anything-for-big-banks culture that pervades all of politics today. Noam Chomsky, Chris Hedges, and Yves Smith deliver critiques from the traditional “left,” counter-balanced by MSNBC’s Dylan Ratigan, Florida Tea Party co-founder Karl Denninger, and Wall Street banking analyst Christopher Whalen.
“I believe our capital markets face growing risk from lightly or unregulated hedge funds just as our markets did in the 1920s from unregulated pools of money – then called syndicates, trusts or pools. Those unregulated pools were instrumental in delivering the 1929 Crash…. There is growing evidence that today’s pools-hedge funds-have advanced and refined the practice of manipulating and cheating other market participants…” (SEC Senior Investigator Gary Aguirre )
The US economy is a house of cards. Every aspect of it is fraudulent, and the illusion of recovery is created with fraudulent statistics.
American capitalism itself is an illusion. All financial markets are rigged. Massive liquidity poured into financial markets by the Federal Reserve’s Quantitative Easing inflates stock and bond prices and drives interest rates, which are supposed to be a measure of the cost of capital, to zero or negative, with the implication that capital is so abundant that its cost is zero and can be had for free. Large enterprises, such as mega-banks and auto manufacturers, which go bankrupt are not permitted to fail. Instead, public debt and money creation are used to cover private losses and keep corporations “too big to fail” afloat at the expense not of shareholders but of people who do not own the shares of the corporations.
Profits are no longer a measure that social welfare is being served by capitalism’s efficient use of resources when profits are achieved by substituting cheaper foreign labor for domestic labor, with resultant decline in consumer purchasing power and rise in income and wealth inequality. In the 21st century, the era of jobs offshoring, the US has experienced an unprecedented explosion in income and wealth inequality. I have made reference to this hard evidence of the failure of capitalism to provide for the social welfare in the traditional economic sense in my book, The Failure of Laissez Faire Capitalism, and Thomas Piketty’s just published book, Capital in the 21st Century, has brought an alarming picture of reality to insouciant economists, such as Paul Krugman. As worrisome as Piketty’s picture is of inequality, I agree with Michael Hudson that the situation is worse than Piketty describes.
Capitalism has been transformed by powerful private interests whose control over governments, courts, and regulatory agencies has turned capitalism into a looting mechanism. Wall Street no longer performs any positive function. Wall Street is a looting mechanism, a deadweight loss to society. Wall Street makes profits by front-running trades with fast computers, by selling fraudulent financial instruments that it is betting against as investment grade securities, by leveraging equity to unprecedented heights, making bets that cannot be covered, and by rigging all commodity markets.
The Federal Reserve and the US Treasury’s “Plunge Protection Team” aid the looting by supporting the stock market with purchases of stock futures, and protect the dollar from the extraordinary money-printing by selling naked shorts into the Comex gold futures market.
The US economy no longer is based on education, hard work, free market prices and the accountability that real free markets impose. Instead, the US economy is based on manipulation of prices, speculative control of commodities, support of the dollar by Washington’s puppet states, manipulated and falsified official statistics, propaganda from the financial media, and inertia by countries, such as Russia and China, who are directly harmed, both economically and politically, by the dollar payments system.
As the governments in most of the rest of the world are incompetent, Washington’s incompetence doesn’t stand out, and this is Washington’s salvation.
But it is not a salvation for Americans who live under Washington’s rule. As all statistical evidence makes completely clear, the share of income and wealth going to the bulk of the US population is declining. This decline means the end of the consumer market that has been the mainstay of the US economy. Now that the mega-rich have even more disproportionate shares of the income and wealth, what happens to an economy based on selling imports and off-shored production of goods and services to a domestic consumer market? How do the vast majority of Americans purchase more when their incomes have not grown for years and have even declined and they are too impoverished to borrow more from banks that won’t lend?
The America in which I grew up was self-sufficient. Foreign trade was a small part of the economy. When I was Assistant Secretary of the Treasury, the US still had a trade surplus except for oil. Offshoring of America’s jobs had not begun, and US earnings on its foreign investments exceeded foreign earnings on US investments. Therefore, America’s earnings abroad covered its energy deficit in its balance of trade.
The economic stability achieved during the Reagan administration was shattered by Wall Street greed. Wall Street threatened corporations with takeovers if the corporations did not produce higher profits by relocating their production of goods and services for American markets abroad. The lower labor costs boosted earnings and stock prices and satisfied Wall Street’s cravings for ever more earnings, but brought an end to the rise in US living standards except for the mega-rich. Financial deregulation loaded the economy with the risks of asset bubbles.
Americans are an amazingly insouciant people. By now any other people would have burnt Wall Street to the ground.
Washington has unique subjects. Americans will take endless abuse and blame some outside government for their predicament–Iraq, Afghanistan, Libya, China, Russia. Such an insouciant and passive people are ideal targets for looting, and their economy, hollowed-out by looting, is a house of cards.
About Dr. Paul Craig Roberts
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.
With U.S. inequality at its highest point since 1928 and Wall Street bonuses hitting pre-2008 levels, we look at the 100-year history of secret collusion between Washington and the financial industry. In her new book, “All the Presidents’ Bankers: The Hidden Alliances That Drive American Power,” financial journalist Nomi Prins explores how a small number of bankers have played critical roles in shaping a century’s worth of financial, foreign and domestic policy in the United States. Prins examines how these relationships have influenced events from the creation of the Federal Reserve, the response to the Great Depression, and the founding of the International Monetary Fund and the World Bank. Now a senior fellow at Demos, Prins is a former managing director at Bear Stearns and Goldman Sachs, and previously an analyst at Lehman Brothers and Chase Manhattan Bank.