Deficit spending is fraudulent inducement

Every time congress submits a budget that requires deficit spending government commits fraudulent inducement. Government is spending money that taxpayers do not have, can’t afford and will not repay. The fed and government realize taxpayers will never pay down an exponentially expanding national debt.

One likely option is a default on the national debt which is actually defaulting on US central banking system. Second option continues to roll debt over into a cycle of perpetual refinancing slavery. A growing number of people will technically end up working for the US government through bailouts.

Government may decide to cut pay as a sign that it is serious about reducing debt. International financial creditors might in turn forgive the US of some debt. Deficit spending is equivalent to a thief threatening to rob the US Treasury if taxpayers do not hand over $700 billion. Blackmail is a covert form of fraudulent inducement.

Deficit spending also transfers money to financial institution in the form of interest payments on funds loaned to government. Government in return pumps this money into schemes such as bailout, stimulus, cash for clunker and TARP.

The most insidious form of financial indentured servitude is exponential growth in interest payments on an inflating national debt. The US Treasury and the Federal Reserve System may have lost control of money creation because of an unchecked derivatives industry.

Over $600 trillion in derivative transactions has dwarf the total monetary worth of the entire globe. The central bank system possibly allowed the extension of too much credit into a global carry trade currency. Barrowing money and swapping currencies for dollars at zero percent interest rates is shoring up an inflationary foundation.

As of 2008 the entire global central bank system held less than $1.2 trillion in gold reserves. Global central bank system does not have enough gold reserve to unwind a growing $12 trillion US national debt. Central banks are purchasing gold which is appreciating in value at exponential rates.

Central banks have reverted to net buyers of gold as price escalates towards the stratosphere thereby creating a self perpetuating increase in cost. An inflationary cycle by carry trade dollars buying less gold at higher prices has begun. Price will also increase partly because of a drop in production and a limit on sources for retail consumption.

Would the total collapse of the US dollar bring the price of gold back from the stratosphere? If the dollar is no longer the carry trade currency how high will interest rate rises. What will American use as a form of currency, the AMERO?

It’s not about the bling bling.

Why is an ounce of gold more valuable then a barrel of oil? Although gold’s density is unique, its value per ounce is less then platinum. An ounce of tungsten plated with 24K gold is a painful rip from the upper hip. There maybe tones of tungsten inside Fort Knox, Fed vaults or central bank storage disguised as pure gold.

Will congress enact the authority to audit the Fed’s gold reserve in New York? Whose gold was found underneath the rubble at ground zero? Oil is the energy that runs a global economy. Gold has technological and industrial applications but energy from oils is needed to bring those applications on line.

Gold does not dominate the global manufacturing economy where as production will grind to a holt with out oil. There are other efficient substitutes that can replace most gold application. Gold is a symbol of confidence, security and wealth. It is the global currency of last resort. Gold knows no political, religious or economical boundaries.

Gold has been manipulated by governments but never eliminated from currency. It has past peak even though swap has been created based on future production. Could there be a shortage of gold? Have promises been made that cannot be? With gold linked to the derivatives market price may spike to inconceivable heights.

A possible audit of gold reserve may reveal secret with global implications. The strength of gold exposes the weakness of a carry trade dollar. Central banks have lost the authority and ability to suppress gold resilience and price. Government can only play a catch-up game when it comes to creating paper currency.

If government were a private corporation it would have filed for bankruptcy. Credit creation is another form of increasing money supply coming prior to the government’s printing press. A $600 trillion plus derivatives market is proof point how money is created through the extension of credit into the private sector.

Stimulus and bailout has justified the extension of credit from the FRS to the US government when covering the losses of a private banking system. An undisciplined, unregulated and unmonitored financial sector expanded the money supply beyond global GDP thereby devaluing all world currencies. Hence the exponential rise of gold.

Government is not able to stop an accelerating money supply unless counterparties are willing to take a hair cut.


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Mystical Currency

U S of A is already in the midst of hyperinflation. Based on the traditional definition of inflation, an exponential spike up in the supply of money back in September 2008, is a great example of hyperinflation. Any more bailouts or stimulus continue to add to money supply and devalue global fiat currencies.

Total amount of currency circulating the globe is around $65 trillion. How could the current notational value of derivatives around the world exceed $600 trillion? There is either a shadow currency in use or ninety percent of derivatives are the product of fraudulent inducement.

A $600 trillion plus derivative market exposes a massive shortage of carry trade dollars. Taxpayers are being bombarded with propaganda which denies what they see, hear and smell. A hyperinflationary virus has already spread globally. Central banks and sovereign nations are dumping their dollars for gold.

National currencies are being debased and taxed by a weak carry trade US currency. This is another reason why central banks have reverted to net buyers of gold. Gold has an inverse effect when fiat currency goes rouge on stable economies. U S of A maybe broke and bankrupt.

The Federal Reserve System continues to loan the federal government more money. This money ends up in the tax haven coffers of corporations that pay no taxes on offshore gains. Treasuries sold increase the amount of dollars in circulation because they are issued to cover debt.

The 2010 election cycle maybe a pivotal point regarding the sovereignty of U S of A. A path at the proverbial fork in the road will be determined by taxpaying voters. Taxpayers are at the precipice of losing their country. Taxpayers realize they are in the midst of an economic war.

Only by throwing the incumbents out of office and recapturing government will the nation be saved from disintegration. A patriotic congress person will understand that taxpayers must perform a radical, delicate and dangerous surgery of removing the cancer from congress.

There are good congress people that are leading the charge but they are out numbered. Now is the time to be bold, innovated, creative and unpredictable. Government is also caught up in this deadly economic war. Trillion dollar financial bombs are exploding all over the country. Taxpayers are short of supplies, man power, money and access.

A defeat will reduce the U S of A to a divided third world nation. Now is the time to be bold, courageous and forge a new paradigm when voting in 2010.

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Taxpayers got punked

US taxpayers have been punked. Taxpayers assume elected official will use the constitution as a guide when deliberating national business. The constitution is being dismantled, disabled, and disrupted. The dollar, personal savings and national economy are also being destroyed.

Congress plunged taxpayers into debt by $2.5 trillion to protect a private banking system. Taxpayers were denied an audit of the Federal Reserve System they protected from plunging into the abyss. Bankrupt banks exchanged toxic paper for treasuries which the Fed purchased from taxpayers after granting government a loan.

The loan in turn increases national debt to the Fed through deficit spending. Fed buys back access treasuries from primary dealer banks that are unable to sell treasuries in global markets. Taxpayers get punked owing the Fed additional money with interest for treasuries repurchased from primary dealer recipients of taxpayer’s bailout.

Paying the Fed principle and interest for treasuries issued to protect and preserve the banking reserve system through deficit spending is maximum ponzi. Taxpayers have been punked into believing printing US dollars can continue forever. At some point purchasing power of all fiat currencies peaks and becomes worthless.

It’s no mystery why the US stock market continues to rise in the midst of a global recession. A weak dollar carry trade invested in foreign markets creates the illusion domestic banking industry has recovered. Government admits $200 billion of bailout monies will never be recovered because congress has lost track of the money.

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Gold gone rouge

Gold has survived government manipulation, price suppression and financial disparage for thousands of years. An unofficial international currency has no alliance to any nation, political philosophy or economic system. Gold as a storage of wealth had no significant application in economy until the industrial revolution.

Gold has always been currency of last resort. Fiat and debased currencies have vanished when decoupled from gold by undisciplined governments. Gold is sought out during inflationary and deflationary environments. Government cannot create or print gold so it must accept currency pegged to a value of commodity.

Increasing price and shortage of gold highlights weakness in fiat currency buying power and value. Gold has peaked. This does not to imply there is no more gold to find, mine and produce. Peak gold serves notice of decline in amount, production and supply of gold.

Decline illustrates diminishing quality of ore grade, deeper depth to mining shafts and an increasing cost of energy. Demands on supply of gold from population will also push price to higher levels. Ore grade has declined from 12 grams per tonne in 1970 to 3 grams from leading producing countries.

Central banks and international monetary institutions acted as quasi mine producers when gold was coupled to paper money. Recently China and India became net buyers. Industrialized countries with detached currencies from gold still have huge reserves.

Natural minerals or resources on Earth do not replenish at the pace of consumption by an expanding population. Global gold production declining at 1% per year will hit zero long before everyone alive today expires. This does not take into account demand from ETF’s,
to population growth. Could gold drop to zero in monetary value?

Yes if replaced by another commodity other then fiat currency as history has proven. Replacement commodity would still experience an increase in value as quality and quantity diminishes. One reason price of quality diamonds remain high is because of control. Control of gold at the mine level only elevates price of commodity.

Will the price of gold rise for ever. No, not even a super currency can defy gravity. Production cost under a global cap and trade will influence price to the up side. Potential productive mines will be discovered in developed, underdeveloped and emerging market nations. Political stability, infrastructure and labor will influence production and price.

Economic turmoil in developed countries encourage hoarding of gold there by pushing price upward. As income level around the world approach discretionary access gold price will exponentially accelerate to the up side. Miners will dig deeper as price rise and so will raw materials, production and labor cost.

Why do human continuously return to this ancient relic currency? It grows out of a basic lack of confidence in monetary authorities. When government and central banks exhibit financial discipline, trust is regained from the populous. Citizen will return to a well regulated, monitored and restrained currency bringing price of Gold to acceptable levels.


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Rouge Financial Jihadists

It’s like a neighborhood dog gone rabid. The International Financial Cartel is a lone wolf conducting a war on stabilization. IFC has the financial resources, thanks to the largess of US taxpayers, to disrupt, disable and destroy any advocate of taxpayers. IFC has deep six its reputation and financial integrity once it broke from a conservative business model.

By September 2008 evidence confirmed derivative markets were experiencing a massive bumper to bumper pile-up. An orchestrated communication break down between law enforcement, regulators and monitoring agencies cannot verify whether the derivative piling-up has ceased.

No one in government is listening to each other. Fort Hood has demonstrated America is still no safer from a terrorist military attack than on 9/11. Government deliberate slow reactions to events such as Katrina in New Orleans, the rebuilding of the twin towers and putting measures in place to prevent financial crisis typifies a “to big to fail” mentality.

Libor remaining below one percent is drowning holders of toxic derivatives related bonds who are expecting a return on their investment. China will not cover its bets involving derivatives that are 80% fraud. Madoff is in jail for 150 years yet no one inside the SEC has been charged.

Entities receiving payment from AIG should experience a claw back if they were bailed-out by congress. Employees of IFC are paid more for racketeering, bait and switch, embezzlement and deception. The fix is in when law enforcer repeat the same mistakes involving criminal prosecution surrounding financial crisis.

Bear Stearns was part of a global ponzi scheme. Government demonstrated it is not willing to water board those who financially threaten taxpayers of current US military operations. Until there is a wash out in matters related to this financial crisis judgment day has been postponed.

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Dollar shortage alleviated by deficit spending

Taxpaying consumers are aware the $700 billion bailout to an international financial cartel was no where close to what is needed for unwinding dark pool derivatives, forex positions and central bank loans swaps. Financial institution continue to hoard billions of dollars instead of making qualified loans

Inaction by the Administration, Congress and FRS has given the green light to fast trading, primary dealer treasury buyers and shadow exchanges. Inactivation of regulatory and monitoring agencies may slowly deep six the dollar, rule of law and maybe the constitution.

Government’s constitutional mandate to protect, preserve and promote the national interest of the U S of A is inert. It was the IFC that conducted a run on institutional money market funds. Allowing a rouge IFC to capture the national banking system, surrender the capital and robbed the treasury demonstrates the fallacy of government being “to big to fail”.

Taxpayers have experienced an exponential explosion of M3 money supply. This is a classic case of “out of site out of mind”. With more than a conservative $600 trillion unwound derivative market drowning the global economy, a massive supply of dollars are needed to resolve the currency shortage.

Where will this type of money come from? The burden will ultimately rest on the backs of the US taxpayers. How will government justify plunging taxpayers deeper into debt through deficit spending? Possibly another financial crisis caused by a “to big to fail” institution like BOA.

BOA could end up receiving trillions of dollars in toxic assets rendering it insolvent. Solvency of another failed bank, maybe BOA, will force smaller solvent regional and local banks to finance winding down a bailed out institution. Unable to finance the unwinding of a mega bank, smaller banks might end under the control of bailed out institution.

FRS should finance dissolving private member banks when insolvency becomes an issue not government or taxpayers. Potentially bankrupt FRS may not have the financial resources to intervene when member banks become insolvent. Leading the next bailout charge on Capital Hill FRS, Treasury and FDIC will exploit congress’s ineptitude.

Another forced rescue plan with very few strings attached is in the making. Immediately FRS will begin printing trillions of debauched promissory notes at an unknown interest rate. Monetary easement by FRS will cover the auction of treasuries authorized by government.

A continuous devaluation of dollars will enable repayment of foreign creditor at discount prices. Instead foreign creditors have decided to revert to a partial gold standard as a hedge against a debauched dollar carry trade. At zero percent interest rate, a borrowed dollar carry trade is being used to profit from the spread between foreign bond rates.

India’s 200 ton purchase of gold pushed price up to $1100. Under normal circumstances an increase in the supply of gold should pull price down. There could be a shortage of gold in storage preventing a decline in price. US stock exchanges appreciated since March 2009 despite millions of job losses.

Who is investing in these markets? It’s the taxpayer’s increasing debt that is propping up markets through deficit spending, bailouts and stimulus.

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Tweaking Confidence

Rockets bursting in air mark another celebration for the close of a two year recession. Third quarter GDP of 2009 hitting 3.5 % indicates government logically will pass a second stimulus bill. Stimulus and bailout will lead as policy through the present economic recovery.

Without government fixing root causes of current turn down. Taxpayers must focus on the collapse of the next growing bubble. Bubble contenders are commercial real estate (CRE) and the mother of all safe havens, the go to of last resort, US Treasuries. Federal government continues to enforce a policy of committing taxpayers to private liabilities.

Perpetuating a cycle of endless spending, taxpayer’s participation in purchasing treasuries to finance deficit spending is no longer required, as the value of surplus dollars deteriorate. Central banks systems were filling the gap by purchasing treasuries, possibly slicing them into traunches, repackaging and marketing them as triple AAA paper.

Collateral swaps of toxic assets may be used to borrow money to purchase securities. Taxpayers observed a drop in the Dow Jones of about 250 points on the news of 2009 Q3 GDP. America is stuck between a rock and a hard place because it is the only country that cannot purchase gold using US dollars.

Any market decline exposes dissipating confidence, declining trust in numbers and dependence on government injections. A jobless recovery will be the norm for government policy and those that no longer have a job may apply for unemployment extension. Will nine percent unemployment become the new normal as full employment?

Somewhere within a dark pool larks a $600 trillion plus derivative market. What volume of money supply is needed to resolve counterparties claims? A shortage of US dollars can only be reverse by increasing supply of money in circulation. Resolution must unwind and flush out financial systems before true economic recovery earnestly begins.

Government lacks grasp, control and motivation to tackle CRE loan workouts. The national psychosis of increasing the national debt through deficit spending in order to grow the economy, which expands money supply, may lead to deflating values of CRE. CRE are picked up by financial institutions that receive taxpayer assurances of loses.

Assurances are guaranteed when price falls below purchase price. Assurances are also financed by stimulus and bailout monies marked to grow the economy.

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America's Financial War

America's Financial War

Americans taxpayers are in the midst of a financial war. The IFC is attacking the purchasing power of the dollar, credit and personal savings. US government is in a state of denial. Banks are hording billions of dollars that should flow back to the taxpaying consumer.

This hoarding may ultimately lead to the collapse the American economy with an extremely deflated dollar. The attacked started in September 2008 but the Congress, White House, Federal Reserve and Treasury refuse to call it a financial strike.

IFC tried to electronically transfer 5.5 trillion dollars from institutional money market fund accounts. Had this transfer been completed the American economy would have collapsed in eight hours and the global economy in twenty four hours.

IFC is deeply imbedded in governments, political parties, law enforcement, military, banking system, communications networks, public and private corporations. This is how the American taxpayer is being manipulated to advocate bailouts and stimulus.

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Managing money verses expanding supply

A captured federal government has lost its way. It no longer processes the skill or fiduciary duty to manage and protect the nation’s wealth. Instead government is fixated on expending the money supply to new and greater volumes. Congress has been seduced by its ability to finance any impulse that gratifies their delusion of self importance.

Recent events of bailing out bankrupt corporations have proven at best congress members have no idea who pushing their buttons. Congress has corrupted their office given to them by taxpaying constituents. They have squandered the honor and respect due the national legislative body.

Congress is no longer on, or has forgotten and redirected the mission of conducting the peoples business. Congress has failed at keeping America safe, strong and prosperous. The ambitions and desires of congress no longer reflect the goals and aspirations of the taxpaying electorate.

Government has decided to lead the nation down a path that will accelerate destruction of process, dissention amongst electorate and deterioration of congressional authority. Taxpayers have reached a point where reliance on right action from government has proven futile and unwise.

Taxpayers must send those in Washington DC a clear, definite and finale message. Any congressional member who continues to vote for deficit spending need not run for reelection. Expansion of the money supply continues to deteriorate the purchasing power of taxpayer’s income.

History has documented the results of debauch national currencies. Government has created a new accolade while managing the increase and demise of a fiat dollar. It has authorized the printing of more fiat money the world has ever known. Problem with congress is its inability to kick its addiction to deficit spending.

Government psychosis of expanding the money supply and expecting a different result loops back to the only resolve of removing reps from office. Congress is failing as directors on the board of America Inc. Government has disregarded constitutional principles, abandoned capitalist rules and promote a hybrid economy.

The world is littered with examples of nations that overextended themselves. Congress pretends it has designed an innovated solution to managing government. Government repeats the same scripts and runs identical plays all other government must run when spending fiat currency.

Taxpayers are not confused by complexities with rules of order. The smoke screen mantra “the solutions are not that simple” hides graft, incompetence and treason. Taxpayers are marching on Washington DC demanding a return to fiscal discipline and responsibility.

Why would an international financial cartel (IFC), which calculated failure at financial prudence offer guidance and solutions to a crisis orchestrated by their agents inside the Federal Government. IFC lobbyist block resolutions, write bills containing thousands of pages and hides key legislation which enables their cause.

Lobbyist from IFC offers contributions and promises of employment through loopholes passed by congress. Taxpayers must lead a mission back from financial ruin towards balanced budgets by electing fiscally patriotic representatives. If Q3 GDP was so great why did Dow Jones tank by over 250 points. What about the rumor Bank of America is going belly up?

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