Ricks Picks header image

How Fed Rigs the Economic Debate


[Alan Geik, whose razor-edged essays on our sordid political culture have gained him a loyal following at Seeking Alpha and other popular web sites, has been a lifelong student of frauds and scams, and so writing about this Era of Bailouts comes naturally to him.  In the essay below (which contains some great links that we would encourage you to follow, including a video punch line at the end), he explains not only why the global financial crisis is not going away any time soon, but why it is likely to get much worse before it gets better.  To bolster his conclusions, Alan draws a bead on some of the bigger-than-life buffoons and greedy political hacks who have helped to amuse and entertain us even as they have unwittingly contributed to the collapse of the global economy. An egregious example of the breed is Fed. Governor Mishkin, who in 2006, with amazingly bad timing and lack of prescience, presented a paper entitled “Iceland’s Financial Stability.”  There are also some piquant notes on the recent misdoings of a world-class buffoon who needs no introduction, Sen. Christopher Dodd. Enjoy! RA]

Beginning with this somewhat worn animated video, Worst Slide Story, will hopefully lend a light, amused tone to my few observations about the iCorrosion of the Empire. Also, a bit of light comedy might lessen the appearance that this is just another frustrated Financial Collapse to Come rant. I have written several articles outlining the two major Wall Street conceived scams of the 1980s; the Latin American Debt Crisis and the S&L bailout. Back then lobbyists gave Congress hooks on which to support massive Wall Street loans to Latin American dictators (“we need to help third world economic development”) and also, to their own S&L campaign contributors (“we need to support small business.”)

Why are these guys smiling?

Of course all of the loans disappeared, and the banks claimed they had inadequate cash reserves, and, furthermore, if they didn’t get immediate government assistance (it’s always needed immediately!) they would fail and of course, “the economy would crash.” (The lobbyists didn’t invent this deceit just for the current money grab; they had worked it both times in the 80s.) Ironically, Fidel Castro and the conservative National Review were The Odd Couple among the few observers who consistently exposed the charade underlying those financial “crisis.”

In September 2008, Congressional leaders emerged from a meeting with then Secretary of the Treasury Paulson. “We need to do something now. We didn’t know“, they claimed, “that the economy was this bad.” Researching my last article, I was surprised to discover that about one-third of ALL members of Congress who voted in great haste for that Sept. 2008 $700 billion bank giveaway had also voted for the bank bailouts of the 80s and into the 90s (including the RTC funding, which when it finally ended its “mission,” couldn’t account for billions of dollars).

Running for Perks

Presumably, Congress learned nothing in twenty years except how to extract more perks with each successful election campaign. So here, as in my last article, are still more reasons why we are in a Death Spiral — reasons other than the mathematical impossibility of ever paying off the national debt, which will lead ultimately to default, or crushing inflation. They instead suggest a pervasive decay of oversight by every elected official, few of whom can now withstand the demands of reelection without corporate support.

“….150 economists support the Federal Reserve’s recent (you name it) action…” You’ve seen these banners many times streaming under the CNBC on-camera blatherers. Of course, the question is always asked in the post mortem; how did so many economists get it so wrong…so many times? The answer is simple: The Federal Reserve Bank thoroughly controls the field of monetary economics. They have raised the academic imperative of “publish or perish” to “disagree at your own risk.”

Fed Is the Only Filter

Large corporations do compete amongst themselves to have their fingerprints all over the content in the academic and trade journals of their industry. However, in the world of monetary economics there is only one filter through which submitting writers have to pass:  the Federal Reserve bureaucracy, who long ago salted the boards of every journal with their loyal followers. But the Fed stranglehold is far more pervasive than just controlling journals. They have created a sprawling company town of economists by allocating  $$ millions for meetings, consultancy fees, hiring hundreds of on-and-off staff PhDs, all with the overt or unintended consequence of widespread academic assent for the political decisions made at the top of the Fed pyramid.

Must reading is an article from the Huffington Post: Priceless: How the Federal Reserve Bought the Economics Profession. A reasonable conclusion is that once inside the company town commissary so to speak, the benefits of supporting the widely reported positions of those higher up the chain are clearly visible. And no doubt many have watched their more savvy colleagues rise toward the top of the pyramid, and witnessed the greater rewards waiting at each succeeding level. Sure, this speaks to the mindset of the modern corporation, not just of the Fed. However, I don’t see any great impact on my grandson’s future lifestyle from corporate infighting at Microsoft over the launching of still another unnecessary upgrade, or at Mattel, over Barbie’s new image.

A Complicit, Pliant Media

But we are talking about the Fed whose actions will have a profound affect over our lives in the next few years. It is dispiriting that, despite whatever positions papers are generated and conferences attended, the Fed direction will ultimately be set by the most short-term of political considerations. So the question, one of many, arises: Why don’t the CNBC compliance people require these economists to fess up to how much into the Federal Reserve dole they are, along with their consulting companies, and universities? Why should it be assumed that their acknowledgements that “Chairman Bernanke has done a masterful job at……..” do not carry a price tag with them?

The poster boy for this fetid culture must be Frederick Mishkin, who parlayed his rise to Fed governor into a job as a well-paid spokesperson for private industry. The most recent revelation, which was mentioned by several bloggers, including Michael Shedlock’s popular Mish’s Global Economic Trend Analysis, is that Governor (I supposed that is what they call themselves) Mishkin received an at-the-time, unreported $140,000 to stamp his name onto a 2006 paper “Iceland’s Financial Stability.”

Mishkin’s ‘Study’

For those that who didn’t follow the trajectory of Iceland’s economy, less than two years after Mishkin’s “study,” the economy crashed when it was publicized that the three leading banks could not refinance their short-term debt, quickly leading to a run on their deposits in Europe. The consequences were devastating for every Icelandic citizen. Ultimately the banks campaigned to have the taxpayers make good for them (sound familiar?) The voters in a referendum overwhelmingly rejected the banks’ suggestion for resolution of the matter. However, as is often the case, the people of Iceland are paying dearly.

Needless to say, Mishkin’s under-the-table payment came from the banks: money sanitized by the appearance that the Icelandic Chamber of Commerce commissioned the study. Mishkin’s report went a long way to counter significant international concern that cracks as massive as those in their globally warmed glaciers were growing in the Icelandic banking system, and posed a serious threat to the stability of the economy.

Mishkin, while Fed Governor, also wrote lengthy views favorable to the largest U.S. banks and argued against the existence of a housing crisis, well into its unfolding. One can conclude — I certainly do — that the disastrous Iceland “study” was not his only unreported fee from the many special interests circling the Fed.

Senator Dolt

And how can we discuss these matters without checking in on my favorite waste of space in Congress, Sen. Christopher Dodd? (Granted, there are so many, but his particular buffoonery provides me with great amusement.) It was he who warned that a decision to nominate Harvard law professor Elizabeth Warren to head a new consumer agency could produce a protracted confirmation fight.  Sen. Dodd is my favorite congressional dolt, totally befuddled by the enormity of the systemic meltdown while still loyally supporting anyone who has given him a few point edge on a home mortgage. In my last article I pointed out that he claimed that he “wanted to revamp the credit card industry,” but “they didn’t want to.”  So he didn’t!!! My kind of field general.

It appears that some Republicans and “industry representatives” were against the Warren nomination, so Sen. Dolt folded his hands, shrugged his shoulders and advised another choice. The bankers couldn’t have invented a more perk-laden stooge than this guy. Even worse, of course, is that there is nobody to succeed him who will not be lining up for their own turn at the trough while Main Street burns.

Let’s end, as we began, on a lighter note:  Click here for an amusing take on some white-collar gringos desperate for work.

(If you’d like to have Rick’s Picks commentary delivered free each day to your e-mail box, click here.)

Please do not ask trading questions!

  • Robert September 7, 2010, 3:48 pm

    Great article Alan-

    Funny how the framers of the Constitution intended for there to be a clear delineation between a House Representative (who is supposed to vote to the wishes of his/her constituents) and a Senator (who is supposed to vote on his/her own good conscience)- and yet politics has turned them all into near sighted fools who only wish to maintain their own reserved seat on the gravy-train.

    All the Dems in Washington are so quick to pin all our challenges on the Industrial-military complex, not realizing that it is really the Financial-political complex which exists on an even higher plane that has been settting these wheels in motion for decades.

    The industrial Military complex is a (large, nasty) symptom of the real problem. focusing our energy on it is just more smoke in mirrors, and will not cure the real disease of economic distortion born out of financial politics…

  • Bradley September 4, 2010, 12:51 am

    Red will,
    I get the distinct sense that much of the bloviating here is done simply for the sake of bloviating. Some of the books! that are posted on blogs remind me of the ivory tower folks I used to sit in front of at Univ. Good folks all, but if we are to live in not only a democracy but also a capitalist system, we might do well to eschew the “perfect society” ideas that seem to be prevalent, and actually start a business, hire people, pay some taxes and try to make the place better for ourselves as well as others.
    When I read posts here, I am frequently reminded of the thought that if you act loonie and have a little money, people will call you “excentric”. If you’re broke, they’ll just call you “crazy”. For their sake, I hope folks here are good traders…

  • Benjamin September 3, 2010, 6:41 pm

    Good housekeeping, flushing toilets, invasive immigrant “germs”, the filthy Federation…

    All fitting commentary for the subject of the article, yes, yes indeed!

    I’m going to talk about immigration, today.

    When I was a kid, I had the great fortune of discovering work while building a snow fort with some of the other neighborhood kids. We needed the snow and there was this big ol’ driveway just piled up with it. The lil’ old lady living there gave me five bucks for clearing that out, even though I didn’t intend to earn any money for it…

    Wait. Did you say five dollars?! $$$Cha-ching$$$!

    And I spent that winter shovelling snow. In the summer, I added lawns, weeding, lemonade stands (honest to goodness!). In the fall, leaves. And like Mr. Fair, at 13 (10 was condsidered “too young” by the employer’s standards) I was delivering papers. But by age 14, they decided only adults in a car were fit for the job.

    And when you consider that at age 16 that you’re still a “child” in the eyes of the labor laws; that you can only work for a certain wage or higher (employers will not negotiate this if you’re American); that you have to have a work permit and, in some places, an honor roll GPA in the public system, pretty much, to get and keep that work permit, not to mention the snobbery of employers taking it upon themselves to tow the line, as if they were an American car company trying to please the EPA before they displease them… (some employers don’t wanna be payin’ no minimum wage to a bum kid that can go college on a massive, if low interest loan “paving their way”)…

    We have a labor shortage in which only the good, hardworking Mexicans can fill for us lazy, pampered Americans? Yeah?!

    Well… Bull! And I say this wholeheartedly, swinging a side of beef baseball bat at any other argument!

  • Bradley September 3, 2010, 4:33 pm

    From my cave, the sad truth appears to be that the fine folks here with their well reasoned and passionate arguments are being outmanuvered by those who have access to more money and can buy influence wherever they need it. Our “democracy” is not made up of a handful of founding fathers sitting around debating how things should be, but by millions of people angling for what they think is best for their fat selves. (Very entertaining arguments however…)

    • redwilldanaher September 3, 2010, 5:10 pm

      Bradley, not to be obnoxious but “And this is news?” My guess is that most of the “fine folks” here aren’t of the disposition that they’d even consider buying influence and “maneuverings”. How I read it is that it’s more than likely that they’d prefer to achieve their success without dubious advantages and duplicitous dealings with the corrupt. Are ethical concerns a part of your equations? Do you have an issue with people that may want to peacefully remove themselves from this matrix and attempt to found something more preferable to them? Just curious.

    • Steve September 3, 2010, 5:32 pm

      Article IV, sec. 4 – guaranteed to each state a Republican form of government. Madison, who penned the Constitution, said in federalist 46 a democracy always ends in destruction, (maybe Madison is wrong), but certainly what exists today is tyranny taking Liberty in a long slow process called infringement. In 1928 the Military defined a Republic and a democracy, the later was described as ‘communistic toward private property’, ‘anarchy’, ‘mobocracy’, ‘discontent’, and a bunch more.

      Legislatively legalized outlawry.

      The sad thing is that unless a parent teaches his child at home the propaganda from the public schools leave high school grads believing that America has always been a feudal monarchy in succession. When a parent teaches at home, the child is attacked at school by teachers who feel threatened that their cash cow might end. I think a stolen phrase says it best:

      You know what you know, you know what you don’t know, and you don’t know what you don’t know you don’t know.

      Few know Liberty because it is a don’t know that you don’t know reality today. Liberty is not taught to the children, and few in America have ever lived in True Liberty.

      From my perspective Liberty is having the Testicular Fortitude to DO IT ! Everyone just wants security, to now worry about what is real. Propaganda works because people would rather be told to Feel Good, than to examine the facts. Americans are optimistic as a cultural norm, a bubble of historic measure.

      Where is you Ark ? Want to win the argument ? Create a democracy wherein the Legislative Branch fuses its powers to the Executive Branch. The judiciary’s hands are tied because it is a voluntary political move. The executive enforces codes and ordinances created by person elected by others deemed in rebellion. The created corporate persons are inferior to the creator legislator and the rules may be changed and changed and changed until none individual wins. (Nash’s Non Co-operative Game Theory) Train up atturn ey who cannot bring questions against their agent/agency. Use propaganda based upon creating dependency via education creating a class of persons who have never known Liberty, and who have no idea that they do not know what they do not know because they have no historical base to create a reality from.

      The 1740’s brought about Liberty in the Americas. The People exercised Liberty in 1775 at Concord Bridge. Washington and quite a few others were deemed OutLaws, Treasonous against the Crown.

      Today if one knows LIBERTY one is deemed an outlaw. What has changed in history as knowledge of the Present ? Every American has a value established by the bean counters in mobocracy. The value of blood is the only value remaining to the People. The debts forced upon us cannot be extinguished by discharging federal reserve notes. I am at Liberty to change all of this. I’m just a coward

    • Steve September 3, 2010, 6:09 pm

      I don’t know about Bradley redwilldanaher. I have a problem with persons who will not defend their Nation and People. I especially have a problem with Men who will not defend their family(should I say SERVE). That is the ONLY thing one owes the Nation, to defend her against enemies both foreign and domestic. Not doing anything is supporting the tyranny by failing about the only thing an American is required to do as a Citizen. Much of the problem in America is all of the illegals who come here instead of fighting for their own land. The PROBLEM is the enfranchisees who come to the States for a handout, instead of under the obligation to fight for Liberty.

      Now I suppose you are going to be angry when you read my attack in regard to family. So I clarify ! The worst are those who will not defend the Republic Nation and the People because it teaches not what Liberty is.

      Did they get the change to the naturalization Law where a mexican does not have to swear to defend the Nation ? There was legislation to so change the Oath for citizenship, just lost track of it.

      Maybe I have a chip on my shoulder because part of my family were forced to come to Virginia, and fight for the Liberty we have, each generation of us. Switzerland is a good place, as is Costa Rica if one wants to remove from the Matrix and the obligation to Family to defend by bearing arms. The Swiss are all trained and armed but are non-stand taking / net neutral. Costa Rica depends on others to defend her in a non-military stance.

      There, I’ve cited a couple of choices for anyone who wants to remove from the matrix. Other than that, United States Statute I (I believe Title 10) seems to indicate that a Citizen must defend the Nation and bear arms from 14 -45 privately, and in an emergency (ours is declared in September) all persons are required to be trained and armed. Talk about public education failure ! The People have an obligation – to bear arms for the defense of themselves and the state – loose quote from Oregon Constitution.

      Article I – The People retain the Right to abolish the Government . . . . ?????????????????????????? What about White v. Texas ? Guess there must be a difference between People and corporate enfranchiee persons.

      To Carol, it is true that the inferior cannot displace the superior. Who is highly limited, and whom is Unlimited in ability to contract in Hale v. Henkel ? Does the government create us via the 14th amendment, or is the federal government created as a servant ? What is the legal theory attorneys use ?

  • Steve September 3, 2010, 9:15 am


    Forgot to word in the Law of Escheats in which this state claims I am incompetent to inherit my Rights, making this state, the Lord of Lands. Just cannot have standing jus Soli if I cannot inherit that that is unalienable.

    Does beneficiary have Right to replace Trustee who is misfeasant, malfeasant in breach ?

    Who can bring the claim ? Who has Standing ?

  • Steve September 3, 2010, 9:01 am

    Something wrong with being indentured ? It partly started for me in 1740 when John and Joseph were sold in England by their step-mother to a ship’s captain and bound out in Virginia.

    Big difference to today because those 1o year old boy’s sons took the cannon and powder to Concord Bridge, and did the same in Boston, with the younger 16 year old joining Green, and Rogers at Brandywine and a bunch more places.

    Learning a Trade like cabinetry is really BAD. If you have 200k you might be able to purchase a small table made in the 1700’s all created by indenture, and a spirit of Freedom with 10 year old boys John and Joseph.

    Gary, you hit a nail on the head. When I was not a teen I was flinging papers, and picking beans. Today the liberal will not allow a child to learn to work. Because of liberal propaganda every kid thinks they should graduate from High School computer classes and get a 60k job, or that government should give them a grant for school. It is this bigotry that is a problem – Ask not what your country can to for you, but; what you can do for your country. Crap, kids today get more handouts from government and parents, yes ! Get knocked up in this state, and this state will give you an apartment, an income, and pay for school. Certainly there is nothing wrong with that, Yes !


    Bigot – narrow view; Republicrats, The Prince, and Roman Civil Law.

  • Bradley September 3, 2010, 2:39 am

    re: whether illegal aliens pay taxes–If I hire an illegal alien, and receive income from my clients for work he/she does, that money gets taxed at MY tax rate, as I can not deduct their wages on my tax return with a W-2 nor a 1099. Their wages are taxed at a HIGHER rate than they would be if they were legal.

    In my opinion, much of the debate regarding illegal immigration is oversimplified.

    • gary leibowitz September 3, 2010, 4:17 am

      I am a deconstructionist. By trade a computer programmer/analyst. I have written whole systems, whether a voice response system, order entry system or a financial system. By nature I break down what at first appears to be confusion into its simplified components.

      Without illegals cost for most things will go much higher. Service sector, like restaurants, agriculture, contruction, landscaping, and vey low paying menial work. I don’t advocate this practice but the reality is that if you want to play the blame game place it squarely on the corporations and small industries that hire them.

      You don’t need reform of any kind to fix this problem over night. Have immigration agents at all the large agriculture farms, and enforce the law. Dole out large penalties and face criminal prosecution. A crack down of this sort will clear up most of the so called problem very quickly.

      Bless the hearts of those caring humane Republicans that have come up with a plan that is akin to indentured slavery. Give them a 1 to 2 year work visa and after that time send them back and bring in the next batch. Better yet, why not create work camps like we did during WWII with the Japanese Americans. For the heck of it lets have another camp for all the Muslims that live here.

      Bottom line. This government along with corporations want the status quo.

    • Chris T. September 3, 2010, 4:24 pm

      Your bottom line is fully correct, no disagreement there, and if you reread my above, my take on why they like it. Its similar to yours:
      The corps. escape from the debasement to cope
      The gov. covers the debasement to hide it.

      Certainly, none of the members of our ruling Janus-party act differently here, and the best proof of the “W’s” complicity is the security angle.
      With all the fearmongering he and his ilk, Chertoff, Rummy, Cheney, etc, practiced for so long, had they believed that, the first thing they would have done is to make one of the easiest points of entry for all those scary terrorists a locked door. Nothing happened at all.
      Why not, of course they never believed their fearmongering, but mainly so as not to endanger their friends relying on this easy to abuse pool of labor.

      And even now, when they are scrambling for any dollar out there, your solution, which WOULD work, is not attempted, though it would increase revenue. Another proof.

  • Steve September 3, 2010, 12:28 am

    Waters is always stale in the bowl, nice and fresh in the water closet. My Vet said so !

    • Chris T. September 3, 2010, 1:01 am

      that was kind fo tongue in cheek, but you do have to wonder what that ring is that grows right around the waterline and under the rim?

      At the very least, it will contain coliforms, but also a collection of other bacteria and molds , just as in a waterglass/toothbrush. Its a great environment in there, just think of all the carbs and proteins going in and out.

      You can certainly clean a water bowl more often than you would a toilet bowl.
      As to the change in water freshness:

      When you’re home you can change the bowl water as often as you would normally flush your loo.
      When you are gone, neither gets changed– unless you train your dog to flush on his own.

      So, there is no improvement with water freshness if you take care to refill the bowl while home, but you do not subject your dog to the stuff growing in the toilet if you clean the bowl prior to filling.

    • Steve September 3, 2010, 8:46 am


      just trying to lighten it up a bit. What with me put out of business by 500% increases in manufacturing cost. I clean the toilet daily so the dog gets fresh ! I wouldn’t go to China to manufacture and put my American foundrymen out of work – now were are all out of work.

      Smile !

    • Chris T. September 3, 2010, 4:13 pm

      🙂 like me?
      Ever try the other part out on your better half?
      Me, I use the lid…

  • Larry September 2, 2010, 11:26 pm

    Why do people who drive Volvos cover the rear of their car with bumper stickers?

    Why do people leave the toilet seat up?

    Why do people earnestly want to believe that politicians can rescue an economy comprised of 300 million people?

    Why do people mow their lawn at 8 AM on Saturday?

    Why do people think big deficits are horrible, but stupendously big deficits are perfectly fine?

    Why do people believe in UFOs, but think that the Apollo moon landings were a hoax?

    Why do people like Julia Roberts?

    • Benjamin September 2, 2010, 11:50 pm

      “Why do people mow their lawn at 8 AM on Saturday?”

      Because it’s cooler in the morning, and we haven’t invented a good robot yet.

      Why do people, while vacuming, pick up something that won’t get sucked up, look at it, then drop it back on the ground to try and vacum it up again?

      Why is that when something is missing, we first assume that someone must stole it?

      Why do stores bother with coupons? Why not just have a first come, first served sale, instead of wasting paper and ink?!

      Why is that we say we’re addicted to modern convenience, when our great, great grandparents probably pulled their horse and cart up to the store front, went inside, had the propietor get everything for them, and help them carry it out and load it up? I mean, sheeze, the parking lots today are huge, the store is huge, we get our own stuff from inside, we load it up ourselves… Where is the modern convenience, exactly?!

      Humans! (grrrr)

    • Chris T. September 2, 2010, 11:55 pm

      “Why do people leave the toilet seat up?”

      Why don’t people PUT the toilet seat up?
      In a fair world it would be equal work for all.
      Thus, the girlfriend wants the DRY seat down ALL the time, making the boyfriend not just lowring it, but also rasing it.
      How about a truce: he goes, he lowers, she goes, she raises.
      If he’s back again first, he ups-and downs.
      If she’s back first, she downs-and-ups.
      Same work, fairly shared!

      Of course, we should simply learn our manners:
      What the hell do people think the LID was invented for?
      As a backrest during the work-out?
      Use the loo and close it when done, problem solved.
      And the whole room looks better.
      (BTW: you CAN give your dog a water bowl)

  • gary leibowitz September 2, 2010, 10:22 pm

    Why do people vote in the very same politicians that allow our standard of living to fall below the 1970’s level and at the same time create a four fold increase for the rich?

    Why do people blame illegal aliens for our problems when all studies show they are the most productive group, contributing more then they take?

    Why do people blame the current mess on the current administration when for 8 years prior a massive surplus was replaced by huge deficits?

    Why do people want the tax cut for the very wealthy reinstated, especially when unemployment and home foreclosures are at record highs?

    Why do people blame a religion for a terrorist attack on our soil?

    Why have we not learnt from our past?

    Answer: Human Nature. Always blame whatever or whomever is vulnerable for attack. That usually means the weakest group.

    • Chris T. September 2, 2010, 11:43 pm

      “Why do people blame illegal aliens for our problems when all studies show they are the most productive group, contributing more then they take?”

      That is just PC propaganda and is simply not true.
      At the generally lower level of remuneration for illegal immigrants (virtually the only reason it is economically feasible, because it is not for the superior skill set, et al they are being hired), anything they directly contribute via taxes is certainly not more than those now working illegally.
      And it is HIGHLY questionable that outside of sales taxes, that they contribute much of anything at all, because the employers hardly put in anything for payroll taxes, nor do they deduct for wage taxes.

      And if someone is making 6-10h as an illegal, and would be willing to pay income, FICA, etc, etc, how much obligation comes from that gross wage? With a kid or two, virtually none.
      So who is paying for any of the state “benefits” (schools, emergency healthcare, town services, welfare, stamps, etc) they receive? Not them.

      Does a purported higher productivity, thus an indirect benefit to the ecnomy as a whole, make up for all the taken sums? Very doubtful that any advantage over legal workers (native or immigrant) they may have turns the red number into a black one.
      It’s not like hiring the millions of legal immigrants (mainly from Latin America but also Carribean, Asia, India…) is that much more expensive for an employer then going for their illegal counterpart, other than saving by illegally not paying the legal taxes.
      Else you would have to claim or believe that a legal immigrant from Honduras or Haiti is a sloth compared to his illegal immigrant compatriot. On its face that is ridiculous.

      Hower, these illegals should not be blamed, I agree with you on that point. Like most of our ailments, their presence is a SYMPTON, not a cause.
      The cause for illegal immigration is the same as for outsourcing of production to China: trying to meet the problems of the general inflationary environment produced by the Fed for decades by going to a lower cost alternative (from the micro perspective).
      Because some of that can not be outsourced (mowing your lawn, painting your house, cooking your food, etc) the cheap labor has to be brought here.

      And there is NO END to this, the world keeps on making more, another 400-500 million just these last 8-10 years. Amongst that pool, there will always be a lower cost worker, whose lot is still better at $2/h here than in the economic hell-hole he/she is from.

      Nature does not like a disequilibrium between things that mix, and seeks to equlize their distributions.
      (two air masses at different temperatures, salt crystals in water, etc). The more unequal the distribution, the stronger the corrective response.

      Humanity and its lifestyle is also very mixable.

      Fling open the doors wide because eventually it will stop. When is simple:
      When coming here is less attractive than staying home.
      That will happen once Haiti’s/Afghanistan’s/Guatemala’s/Mexico’s/Zimbabwe’s/et al economy starts looking like ours and the Wests (with all its warts now), or ours starts looking like those.
      Which DO YOU think is more likely?
      In the former, everything ends up above average, in the latter everything is below average. Maybe you get the middleground.
      But when you are on the right tail of the curve (bell or not), and expecting everyone to be able to be there as well is not just foolish, its ignorant.

    • Steve September 3, 2010, 12:25 am


      With the greatest respect – Wrong ! I have first hand accounts from a medical office wherein an illegal gets ‘free care’, and the office has to hire an interpreter at cost to the office – all of which YOU PAY FOR IN THE END.

      Second reality, a worker in the same office married an illegal to make him legal. The Mexican illegal, now legal just told his wife to quit a $16.00 an hour job because they make more money off of the government ‘get’, including tax credits that allowed them to by a 10,000.00 car for cash.

      These facts are down and dirty in your face facts.

      What is claimed below I read and saw the statistics in real terms in regard to what the criminals entering our Nation really cost.

      There are numerous ‘real’ studies that just blow holes in the your theory of no cost. Granted the Mexican laborer “illegal” works hard at jobs that Americans should be doing instead of receiving “unemployment WELFARE” from the congress for 18 months.

  • Larry September 2, 2010, 9:16 pm

    if you own a toxic asset, what is it worth? What is a TRUE value for an illiquid asset, one that has no market? Somewhere between its cost and zero.

    Or course, COST could be used for everything, so that whatever was paid for something is what is on the books, even when it is constructively worthless.

    This is the Arthur Anderson accounting you have in mind.

  • Chris T. September 2, 2010, 8:56 pm

    to “jj” who wrote:
    “Where is the outrage at what your politicians are doing to your society?”

    The (prob. very) cynical answer to that is that people can only be outraged over what they know or at least are aware of.
    The sad fact is that people here **may** be aware of a general malaise, but not anything specific to be uspet at. Or, even worse, they may not even be aware of that.

    The above is the actual answer to your question:
    The general lack of perception on the one hand, and much worse, the general ignorance of the real mechanisms of the modern world.

    First people would have to see (become aware), and second they would have to be able to question and evaluate (becoming knowledgable).

    On both fronts THE SYSTEM has been working for 60+ years (really 100+) to keep the information from us.
    Point one:
    All the happy talk we here laugh at, all the faked government numbers, and all the spin put on those faked numbers to obscure even their revelations DOES work, or else THEY wouldn’t keep it up.
    It works because people have been taught to disbelieve that which they can (or could) perceive in favor of believing that which is officially being proselytized/propagandized.
    Also, lets not forget that by now, prob. half of society sees nothing having changed anyway:
    the poor/have nots were that way before, so they are not worse off, and the handouts that do exist still flow.
    The wealthy and filthy wealthy had before and still do (look at exec. pay and bonuses before and after, no change) Sure the 1982 Mouton Rothschild can now be bought for somewhat under 1 grand, but thats no big change.
    And the public sector hasn’t suffered (so far– just look at the last robust island of residential real estate, the counties aroudn DC).
    So much for the awareness of the “sheeple”.

    But when they do get a bit restless because it just can’t be hidden/fudged/talked away anymore, then comes point 2:

    The lack of any background to question and evaluate.
    There are multiple reasons for that sure, but to either believe that Americans are simply stupid, or that it just happened by happenstance, is wrong. Neither is correct.
    Our modern society here has become so coddled with so many distractions, that is the major tool. Starts in school, and is maintained for all the so-called grown-ups. Why people can tell you the brand-newest Gossip about Brad Pitt and his ladies, but not even who the Secretary of State is. Or why we put so much emphasis on all things professional sports, that enables these enterprises to pay 80+ million salaries, or, lets go upscale, why traders, i-bankers can brag all day about the fiber their business cards are made from (a little B. Ellis, and very 80s but somehow still apt).
    The newest diversion has been the one to keep maturity away from adults, as shown by the still growing success of all things video with people who should long ago have outgrown this kid-stuff.
    (Sorry Ben, I did have to laugh at your game comment, and you are an exception to the rule here, as you are aware).
    All these distractions have taken up any space in the head or time on hand that could be used to aquire the background needed…
    Basically, our masters have perfected the old Roman panem-et-circenses, and unlike back then, those to be mollified do not even KNOW that they are unfree (because they’re in a democracy), thus no clear masters to suprise in their beds in the deep of the night.

    • Benjamin September 2, 2010, 11:06 pm

      I see we’ve posted similar, though quite opposite comments, Chris. So after much thought, I decided to pick on one thing: distractions.

      First, why is everything opium anymore?

      Religion? Opium!
      Sex? Opium!
      Sports? Opium!
      TV? Opium!
      Opium? Ooo-pium!
      Death? An escape, therefore a drug; probably opium.

      Sigh… As if it just isn’t human nature to do anything enjoyable, as human nature would have it if were left alone. Heavens no. It has to addiction and programming, bad habits to be rid of 100,000 years ago, because that is what Chieftan Class has always demanded.

      Say WHAT?! It’s true. To use a prime example…

      What teacher working for the union says anything good about video games? On the other hand, because the working class adult will allow themselves to spend his fruits in any way he sees fit, the latter complains, nonstop. And while the same working class mother that taught me the alphabet and how to read didn’t play video games, the father who taught me about painting, drawing, and computers, did. And if you knew me or my father, there’s a high likelihood the word “immature” wouldn’t come to mind. Try saying that about a public educator and the system that hates us.

      There seems to be some kind of schism between the puritan libertarians and a part of their humanity. They contend we can only be minimalist, deprogrammed, and/or hardened in our…maturity…

      Is there something that can be done for this? Because the more the well-meaning Agrarian/Amish libertarians and their lazy, malicious twins, the State, keep on with this slamming and bemoaning of “distractions”, the longer this is going to take because, really, what is the difference between the State demanding your attention and sacrifice and… having to give up one’s choices in life in order to baby sit the State?

    • Chris T. September 3, 2010, 12:15 am

      Ben, not a bad point to raise, I do agree there.

      Perhaps the answer is in any of these things not just being distractions, but in those things being / becoming instrumentalized with an agenda, that surves a purpose other than the person’s using the distraction.

      Its not so much the opium, as giving someone even cheaper, more or better opium, when he has already had more than is good for him.
      Human nature will tend to do some of that on its own, but that is not the same as being instrumentalized.

      Your opium analogy fits, once on realizes what actually caused China to go down in the smoke of the dens, that certainly was a good example of an instrumentalization (and by the self-styled most civilized contry on earth).

      V/PC games: when I realized all the things I couldn’t do because x-box was taking up so much time, I stopped.
      Now, as to the net and reading blogs, or commenting…
      (just kidding!)

  • Mercy September 2, 2010, 8:05 pm

    Two weeks ago I didn’t know this website existed, but here is my humble opinion.

    Armed with my degree in Human Services I went to work every day hoping that my contribution would make a difference.

    Unconcerned with the financial world I trusted the government. It wasn’t until the late nineties when maintaining the same life style as before became increasingly difficult that I started to dig for information that led me into a new awareness about global corruption and international exploitation.

    Have not things been wrong from the beginning when in 1913 Congress created the Federal Reserve System, which consists of seven members that serve a fourteen year term (some may even get reappointed) and worse yet, handpicked by the President.

    Accepting the present and what the future may bring has left many of us extremely disappointed and in some instances psychologically wounded.

    How does a nation recover from greed, lack of respect and trust?

    • Chris T. September 3, 2010, 4:09 pm

      “…and worse yet, handpicked by the President.”

      Picked the following up somewhere else, but given the whole scheme of things, it fits perfectly, so could very well be true:

      Apparently, the Chairman of the Fed is NOT really picked by the President at all. He must choose from a short-list provided to him by the true owners of the Fed, our favortie Financials in NYC.
      Of course they would never place anyone on there that isn’t a clone of what they want.
      So, THAT makes it even worse than if the President could choose freely.

      If this is correct, then the question would be, what if the President went ahead and simply ignored this, nominating someone else? Who knows, also as to whether that has actually happened, but it would not be too hard to imagine, that THEY would then just engineer a rejection by the Senate, which only makes the Pres. look bad.
      The Paul Volcker term is no disproof, because there is a line of thought, that far from “doing the right thing”, Volcker’s real motive was nothing of the sort, but rather the only effective way of preserving the Fed itself and its powers.
      To know what Volcker’s way of thinking is most likely really like, one needs only look at his role in the 1971 gold-payment default of our debt.

  • roger erickson September 2, 2010, 8:01 pm

    “reasons other than the mathematical impossibility of ever paying off the national debt, which will lead ultimately to default, or crushing inflation”

    Rick, you were riotously accurate everywhere except in this statement, where you show a complete lack of understanding of the most basic tenets of general OPERATIONS. The belief which you state, in reality, is the killer hold that the Fed pyramid-scheme still holds even on YOUR balls! If you can’t question everything, including your own most dearly held assumptions, you can never achieve operational freedom.
    If you love your children, and those of your readers, then please, please please start reading these blogs on the mundane realities of monetary operations.







    That quote is not mine, Roger, but I’m not sure what it is that you disagree with. I find the statement unexceptionable. RA

    • alan geik September 4, 2010, 8:32 am

      Hi Roger,
      The quote is mine, not Rick’s. I find it, as does Rick, rather unexceptional.

      You write; “……you show a complete lack of understanding of the most basic tenets of general OPERATIONS.”

      I don’t know what “tenets” you refer to that will vary a rather simple equation; one, I might add, that has been revisited dozens of times since the days of the Pharaohs. Specifically, the ease with which fiat money can be pumped into worthlessness by kings or elected politicians is being demonstrated once again.

      Please tell us which “tenets” will alter that outcome? Or is it going to be “different this time?”


  • sokratez September 2, 2010, 7:17 pm

    Blame the people for choosing among the jackals the parties nominate. Blame the people for the scientific Gerrymandering,which assures either a Democrat or Republican will win, because the district’s registered voters are 65% or more Democrat or Republican. Thus, in most biennial House elections, fewer than 45 seats out of 435 (11%) are truly competitive. My Congressional district is drawn Democrat. The former representative (Wexler) was unopposed the last two times he ran. He became so complacent, he didn’t maintain a residence in the district, moving his family to a posh Maryland suburb, and selling his house here. The last presidential contest was a classic example of the dull-witted puppets paraded before the electorate. Obama was a Daley Machine mechanic. If he’s such a genius, why can’t he do without a Teleprompter, and why are ALL of his school records–elementary, high school, undergraduate, graduate, and law– sealed? And McCain? He doesn’t even understand WAR, his favorite subject. He was at the bottom of his class at Annapolis. His father and grandfather were four-star admirals, which may have helped him to a commission. He was a POW, not a War Hero.
    He was too lazy to memorize salient weaknesses in Obie’s political record, and recite them, allowing BO to waltz through the campaign joking and smiling, never having to defend what he promised in the primaries to defeat Clinton, or to explain what he planned to do once in office. Of course, infantile “journalists”, in salaried positions, let this happen.

    The people made it Chrome Yellow Clear they didn’t want banks bailed out (TARP) or the Health Care obscenity law. They were insulted by the Gadarene Swine in DC, and ignored. Everything the federal government touches turns to solid waste–call it the Mer-des Touch. Lying is so nakedly the norm in Washington that speaking the truth is a “gaffe”.

    Blame the people when federal prosecutors routinely indict and convict for conspiracy–meaning TALKING about doing something illegal to an FBI agent provocateur, who goads them to action and provides the wherewithal. Where judges make new law, in
    poorly written regurgitations of ill-remembered sociological tracts, and New York Times editorials. Enough. BLAME THE RULERS, NOT THE RULED.

    • Steve September 3, 2010, 8:40 am

      Didn’t know Obama’s I.Q. went over 117 !

  • fallingman September 2, 2010, 6:55 pm

    Thanks for providing a forum for truth telling. And thanks to Mr. Geik for the essay.

    The cartel has us in a hammerlock and the situation may be bleak, but that doesn’t mean we can’t give ’em the finger and spit in the soup while we some freedom while we still can. I don’t relish life on the Morgan plantation.


    Andrew Jackson kicked Biddle and the central bankers to the curb. Time for us to take on the bastards.

    • Benjamin September 2, 2010, 8:58 pm

      ****** A right!

      Half the voting age population doesn’t even vote for their oppressor. In the other half, a minority % votes/support independents.

      The corrupt politicians and economists are a minority!

      The only problem that I see is that many were simply not able to see how it all works, the Fed and central banking system, ie. But that is shifting, thanks to the internet. Even if they take control of it (which is doubtful, at any rate) enough people realize what has been going on and why.

      Maybe it’s not like a red-hot knife through molten butter just yet, but butter melts pretty fast, just as metal heats up.

    • Chris T. September 2, 2010, 10:53 pm

      “Half doesn’t vote”
      –which is why, as opposed to the official bemoaning of voter apathy, the System loves low turn-out. It allows the committed voteing block disproprtionately more sway, and mainly, those blocks are of the system’s own making, its vassals, or its members.
      The truly independent minority gets eviscerated as a functioning force early enough to keep them ineffective– just see the coopting of the tea-party discontent by the mainstream Reps.

    • alan September 4, 2010, 8:22 am

      Thanks for your kind words about my article.

      Your mention of Andrew Jackson should be a reminder to everyone that the American banking system has always been predatory. There are, and never will be, sufficient regulations as the bankers will always circumvent them. They will be enthusiatically supported by elected officials; rarely has there ever been one who has seen a bank bailout that they could not embrace.

      Here is Andrew Jackson’s farewell speech, profound, as he chose the evils of the banking system to focus upon, rather than any other issue during his administration.

  • gary leibowitz September 2, 2010, 6:42 pm

    The average american worker makes less today than in the 70’s, while the rich make 4 times as much.

    With that kind of disparity (largest ever recorded) is it a shock that corporations run this country. Irononically the biggest campaign of misinformation is Mr. Murdoch’s News conglomerate. He has been given a pass on breaking the FCC rules on dominating more than 50 percent of any region. Today we only have 6 major players.

    I am afraid only when a deep depression strikes will there be change. Divide and conquer has been a strategy that works, combined with disseminating blame on the weakest among us.

    Without true election reform this pattern is inevitable. The notion that politicians “serve” for the good of this country has been replaced by “self serving”.

    • jj September 2, 2010, 7:14 pm

      “I am afraid only when a deep depression strikes will there be change”

      How sad human nature, reactive…never proactive.

      The whole system is rigged, how can the FASB 157 ruling be allowed? The banks are allowed to “mark their assets to make believe” not mark to market TRUE values, hello!!! Arther Anderson accounting lives on.
      Can Americans mark to make believe their incomes lower?
      Can they mark to make believe their cap gains lower?

      Yet every Friday when another 1-6 banks close the FDIC clearly see’s two books, reality which is 30-80% below the banks second books “mark to make believe”
      I couldn’t make this stuff up if I was on acid!!!

  • dennis September 2, 2010, 5:43 pm

    I am a casual reader or Rick’s newsletter, and I read voraciously others who write on similar subjects. This is without a doubt one of the most interesting and important articles I have seen. No exaggeration. I hope it goes viral. Thank you Rick.
    And I actually think an abridged version read by Rick and video-taped would make a wonderful post on utube. (Remember me Rick, when whatever profits roll in….lol)

  • JohnJay September 2, 2010, 4:54 pm

    RedWill and DG
    If the majority of the States decide to have no Federal Government at all, that is fine with me.
    We would still need to formally shut the old system down and make sure it is done by the letter of the law.
    Otherwise you leave the door open for the current Federal Government to declare a “Rebellion” exists.
    That was the mistake the Southern States made by getting tough, and a civil war was the result.
    Let the majority of the States decide what is to be done about a Federal Government, it just needs to be done legally under the existing Constitution.

    • Carol September 2, 2010, 11:37 pm

      The “states” are all sub-corporations of the federal corporation (US Inc ) that cannot divorce their parent and the entity that created them (US Inc). So “succession” will NEVER happen, it can’t, its an impossibly.

      The southern states that walk out of congress and which act took place leading up to the civil war were “real” States at THAT time. They are no longer, they are corporations. Look up any “State” in D&B (Dunn and Bradstreet) and see their corporations’ financial ratings. Dunn and Bradstreet keeps ratings on ALL corporations including the US Inc, the IRS, allt he 50 State corporations, all counties, court houses, etc.

      Further the CONstitution is a CON and a farce. It is no more meaningful to you or me than it is to the States or Federal Government. I could write a book about the non-existence (legally) and non-binding (legally) nature of the constitution but here I will only say that it is “just a g-d piece of paper” (GW Bush) – a contract signed by people long dead that didn’t involve the present corporate government, (US Inc and States that were created in 1871 after the civil war). The CONstitution is a ruse that is used to keep the sheeple calm so that they think they have “constitutional rights”. LOL. as if the creation of the people – the CONstitution and the government – could give rights to its creator – the people. Don’t you see how ass backwards that is?

      Anyhow being that ALL law is contract, and the created (States) CANNOT dictate to its creator (US Inc) there will never be a succession or dissolution of the States from the fed (US Inc).

    • Carol September 2, 2010, 11:43 pm

      The “states” are all sub-corporations of the federal corporation (US Inc ) that can not divorce their parent and the entity that created them (US Inc). So “succession” will NEVER happen, it can’t, it’s an impossibly. The southern states that walk out of congress and which lead to the civil war were “real” States at THAT time. They are no longer “real” states they are corporations. Look up any “State” in D&B (Dunn and Bradstreet) and see their corporations’ financial ratings. Dunn and Bradstreet keeps ratings on ALL corporations including the US Inc, the IRS, the DEA, the FBI, all 50 State corporations, all counties, all court houses, etc.

      Further the CONstitution is a CON and farce. It is no more meaningful to you or me and it is the States or Federal Government. I could write a book about the non-existence (legally) and non-binding (legally) nature of the constitution but here I will only say that it is “just a g-d piece of paper” (GW Bush) – a contract signed by people long dead that didn’t involve the present corporate government, (US Inc and States that were created in 1871 after the civil war). It is a ruse that is used to keep the sheeple calm so that they think they have “constitutional rights”. LOL as if the creation of the people – the CONstitution and the government – could give rights to its creator – the people. Don’t you see how ass backwards that is?

      Anyhow being that ALL law is contract, and the created (States) CANNOT dictate to its creator (US Inc) there will never be a succession or dissolution of the States from the fed (US Inc).

    • Steve September 3, 2010, 8:31 am


      With great respect to your knowledge. There is UNITED STATES 28 U.S.C. 3002(15), a foreign corporation created by the congress in 1872 (one of at least four united states), after the Africans were freed over the several States with Master/servant law destroyed for them. People seem to get stuck in the territorial realities of the Buck Act, (White v. Texas) and a private democracy UNITED STATES under exclusive Article I, sec. 8, cls. 17, Article IV, sec. 3, cls. 2 ‘unlimited’ powers, and under Master/Servant Law in regard to that class of citizenship, 14th amendment, as a voluntary political act, created under the powers of the Commander in Chief.

      I agree the Constitution is a contract binding no Free Man. However, under contract Law, and Trust Law, the person taking beneficial use of public trust owes a ‘debt’ fiduciary to the beneficiary who owes nothing to the government, except to defend the Nation against all terror, foreign and domestic. Voluntary agreement with an existing contract, endorsed by the Framers (others), is defined a Blind Contract if I remember correct, creating fiduciary, and trust.

      Contract Law trumps the constitution in most regards, in that a Private Contract is protected constitutionally. That allows 10 Stat 146 to work as a private political choice to practice democracy as a private contract. Our great distinction comes once again under Master/Servant Law in that the congress is not prohibited from slaving in the district and the territories. Additionally, the 13th Article of Amendment does not prohibit voluntary slavery, only involuntary slavery. The congress created that class of
      citizenship known as ‘federal subject’ 14th voluntary political act. That citizenship which is created by the legislature can be taken by the legislature who created it under Master/Servant Law.

      If you listened to Justice O’Conner you heard her opine that most law is now Roman Civil Law, not American Law. If you listened to justice Stevens, and others you know that many many decisions are under International Law (my belief – because 28 U.S.C. 3002 is a foreign corporation).

      No one can have this discussion without talking about de Facto, versus de Jure governmental forms. Certainly we operate under a de Facto democracy that is required under Trust Law for legislative fiduciary to care for their creation 14th amendment citizen slaves, corporate enfranchisees territorially having no constitutional rights what so ever because no legislator has any constitutional rights, The State of Georgia v. Stanton 73 U.S. 50 (1867).

      If a Bar Attorney, who is presumed to first represent the State, were to raise the question of Contract Law, and Oath at Article VI, Const. , supra, they will be sanctioned and debarred because they are first judicial officers and agents of the state, over a beneficiary/client that is deemed mentally incompetent.

      I have Standing to bring a Claim.
      The questions are Ripe.
      The lost of Unalienable rights a real damage.

      I am jus Soli, but; will any attorney bring that claim ? The current court overused the word “experiment” in the latest opinions leaning toward Individual Rights. The court has said “We shall hold the Constitution in Trust until such time as the people tire of this experiment in democracy.” Certainly territorial citizens can practice a political form where ever they reside (defined as doing business in a foreign land) ie; a resident of China for the purpose of commerce.

      Bottom line, your legislator came to a meeting of the minds to reach an agreement as a private individual, then taking Oath at Article VI (all under Contract Law) engaging Trust Law under Clearfield Trust Doctrine. That contract is now a Blind Contract that the legislator takes Oath to to support and defend the beneficiary People who owe nothing to the government except to defend as I stated. The People owe nothing to the State so long as they do not Assault, Breach, Fraud, Theft, or Trespass, Hale v. Henkel (1906).

      No attorney can raise the Question, nor do they have Standing to bring a controversy in regard to the de Facto power’s breach of Contract, and fiduciary breach in failing to defend the Public Right of Man to the unanimous Declaration. Roman Civil Law adhesion contracts devoid Right and Wrong here. Use creates contract under Roman Civil Law without a meeting of the minds, to reach agreement, to endorse a Common Law Contract. Use of federal reserve notes means contract, and trust under Roman Civil Law, and under Clearfield Trust Doctrine. So use is a benefit of the federal corporation. Under Ashwander v. Tenn Vly Auth. “. . . beneficiary cannot bring constitutional question against benefactor while in receipt of benefit.”

      A federal D.O.J. attorney Wermuth claimed that because I breathe clean air under the Clean Art Acts I am enfranchised to the corporate state ! Do you see any problem here ?

      The Seat of Government still exists in Oregon City Oregon. The federal corporate enfranchisees practice rebellion within the federal enclave Salem with utterly null and void Laws, Amos H. Short v. Francis Ertimanger 5 Opin 354, 525. Congress to counter this passed 10 Stat. 146 funding the rebellion and rendering a legislative act under territorial law, Article IV, sec. 3, cls. 2.

      I am Sovereign and no court can deny that, because what they cannot create, they cannot deny. My Citizenship came under the Laws of Conquest A.D. 1775, Concord Bridge by direct descent and cannot be alienated by anyone, Title 8 United States Code. There is a clear distinction between Article IV, sec. 2, and the 14th amendment having civil rights ‘like’ real Citizens. Nearly every complaint brought by the D.O.J. originates in Commerce Clause – including Heathcare. All other powers come from a new feudal theory under the Reconstruction Acts of 1867 and that voter scam wherein the people registered under the military powers to ‘vote’, as every election is done today under the Colors of the Commander in Chief, (International Symbols and Seals) (Veterans of Foreign Wars)(4 U.S.C. 1).

      This takes hours and days to work through. We are dealing with Contract Law. The right of certain Classes of People to enfranchise to voluntary slavery under the territorial powers of congress, and africans who can never be free, only equal in federal slavery in the district and its territories under the Buck Act, like OR.

      My Rights under Conquest, supported by the Original State Constitutions, says that the People may abolish the government, and that Right is ancient and antecedent to the Federal Government, and the current “federal union of states” (again a Justice O’Conner quote). The several States still exist by Contract Law, even in the face of the Senate Rebellion of 1865-1867 in forcing the several States to control under a fused feudal executive scam.

      This should be as clear as it gets. For any officer/agent/agency/assign/consign/nominee etc. & etc. etc. to deny the existence of the several States, it is open confession of breach of contract, breach of fiduciary obligation to beneficial use of Public Trust Office in treasonous designs.

      Attorney’s are Officers of the Judicial Branch FIRST. It is legally impossible for an attorney to bring a breach claim against him/herself as an officer of this State. If an attorney tries to bring the claim, most likely he/she will be sanctioned. The question in regard to Obama lies under abuse of political power via the 14th amendment to deny by conversion that I am jus Soli. Unless I am jus Soli I do not have Standing to bring a claim.

      Even the latest Gun Suits are 14th amendment, and the privilege of a slave to defend himself in his home – does not matter whether black or white, or yellow, only whether of not one is voluntary or involuntary. The Right to defend one’s self is ancient and antecedent to any state. Yet, no attorney will go there allowing the Court to Opine that the rebellion of the legislative body is a breach denying antecedent and ancient Rights.

      Your legislators are in breach of contract/breach of fiduciary obligation, but; you and you cannot raise a constitutional question under the Erie Railroad Doctrine, Clearfield Trust Doctrine, and the Ashwander Doctrine because D.O.J. and your judges say you are enfranchised under the Clean Art Acts and the Corporate Act of 1872.

      Carol, how many things do the united States, and United States, and United States of American mean under current Law ?

      If a court cannot be forced to first accept jus Soli of a claimant, no action can come forward in Original Jurisdiction. All actions by the D.O.J. are commerce for the most part. Every action an attorney files in via the 14th amendment to claim civil rights similar to say Constitutional Rights at Article IV of Amendment.

      I cannot bring a claim against the corporate government form unless I can first establish jus Soli Standing. If I cannot breathe the Air without corporate enfranchisement I cannot bring Constitutional Question against benefactor. The attorney implied claim is that I am beneficiary of corporate legislation.

      Talk of CORRUPTION

    • redwilldanaher September 3, 2010, 3:45 pm

      “So “succession” will NEVER happen, it can’t, its an impossibly.” – SERIOUSLY CAROL? Secession will not be possible for eternity? I didn’t know that this was an immutable law of physics. Is this based in quantum theory or string theory? I was about to make a simplistic case for how peaceful secession would be possible but now that you’ve informed me that the very laws of the universe do not permit it I’ll go back to embracing fatalism for the sake of my children. After all, I don’t want to raise their hopes that they won’t have to live out the life of a debt slave just like mom and dad did.

  • DG September 2, 2010, 4:36 pm

    MHWTC on the subject (my humble worthless two cents):

    Agreed, we (majority) elected these imbeciles. They are in every single state in the union. Dodd. Puh-leaz. Who loves him? A lot of folks. They are everywhere. Not you, not me. They occupy all parties, all ideals (well, except for Paul, and the MSM ironically has painted him crazy…) The madness just keeps coming. So, to the point made above – Why save it?

    Why? So the idiots that created this mess can just screw up the saved mess by repeating the same idiotic policies?

    The idiots that elect the idiots will not get it until THEY get it, and get it good. If you save the system they will merely rationalize the entire difficult experience and continue to repeat the same mistakes. The only thing that will save the system is a political/economical core meltdown. It needs to be devastating and the causes need to be obvious. A dollar collapse would fill this need nicely….equal opportunity punisher, punishing those most dependent on the corrupt government the most. Sorry. It is not as if there haven’t been warnings.

    Of course, there are many that you will never reach. The retired PERs employee, “I only vote democrat,” that hangs on every word of Paul Krugman will always believe that regardless of how bad things get, they would get incrementally better if we just quantitatively eased more. Huh. How much? More. Is that a trillion, quadrillion, quintillion? It is not a number, it is simply more. They should rename it. That sounds like qualitative easing.

    As Einstein said, “Only two things are infinite, the universe and human stupidity, and I’m not sure about the former”

    Get on your asbestos suit and “Burn, baby, burn.” The native Americans did it all the time. And from the black, smoky ashes of torched great forests rose beautiful grassy meadows, bastions of flora and fauna.

    Like I said, MHWTC.

    • Chris T. September 2, 2010, 9:10 pm

      “devastating core meltdown”

      Sad, but I fully agree here, its the only thing that could, MAYBE, right things.
      The optimist is the one who believes in the healing power of the chemotherapy, that something good will emerge.
      The pessimist just believes in the collapse, and nothing to come after.
      And the realist is not so sure at all about the aftermath, but still prepares for the good one by hoarding not just necessities, but PMs.
      If the pessimists turn out to be right, I can only think that we didn’t deserve any better.

    • Other Paul September 3, 2010, 3:15 am

      Excellent commentary.
      The only good thing about the current system being propped up is that it gives more time, for those that are most concerned about the inevitable meltdown, to get prepared.
      The politicians and bankers will not go quietly. They have thrown trillions at the system since September 2008 and will do it again if they believe that it is necessary for their prosperity (huge bonuses / campaign contributions). I don’t know how many times that they can “go all in” and have the system survive.

  • Benjamin September 2, 2010, 8:41 am

    After reading this, a picture formed in my mind, like a badly written televangelist script…

    (The choir boys (the economists) start singing softly, in the background. Running/fast walking out onto the stage, at an urgent pace that tries to look like it’s more for the fun and exercise than a desperate emergency… A banker. He makes an all too apparently rehearsed mistep, trips, and stumbles a bit.)

    “(smling) Everything can be going as swell as can be expected, but sometimes we bankers make little misteps that, well, make us look like idiots! Yes, even we, like you, have short term money problems from time to time, America. And this is one of those rare times that we need YOUR help! ”

    (Out comes Al “I was wrong” Greenspan, the “reformed free marketer”. )

    “Well, what else can I say? He’s right, I was wrong. Oh, the painful sins I once indulged in. But it’s not too late. Please, folks. It’s important that you dig down DEEP. And if you think we bankers have short term problems…”

    (Marched out onto the stage… a whole line of smiling, knuckle-dragging, nose-picking retards. Some of them get lost, and forget where the stage is, so walk back off, only to be gently ushered back by sympathetic volunteers)

    “Washington DC simply cannot do without our… No YOUR! I meant your help, America! Please help us, so that we help these unfortunate imbeciles (tears). They suffer the most, you know, but they’re our only way out of this. Stupid politicians are our future! And you know that we’re good for things, long term, because we know that you know because you know that we know that we’d never let you down. And have we ever before? (smile and wink)”

    (The lights dim on the stage, with a soft glow still surrounding the singing choir boys. Oh, what dark yet hopeful times these are for the cherished “American Way”.)

  • JohnJay September 2, 2010, 5:17 am

    I think it is fair to say that there is nothing short of a Constitutional Convention and a clean sheet of paper that can save the America we older guys all grew up in.
    To try to turn it around with elections every two years is not remotely possible.
    Declare the Bill of Rights sacrosanct, and vaporize the old Federal system by Amendments, Department by Department. Energy and Education are on my list as worse than useless, no one will miss them except the lazy louts employed there.
    The States should begin meeting now to create the Agenda, the Federal Government is a bloated monster beyond reform or rehabilitation.
    Other than that, it’s everyman for himself with the political process we are stuck with, voting is a joke.
    You are more likely to see a Great White Shark that hasn’t eaten in a month pass on a fat seal than you are to see the DC gang do the right thing for you and I!

    • redwilldanaher September 2, 2010, 3:23 pm

      I always appreciate your comments John. I’m sort of right there with you but I have to ask: Why should we want to save it? I think you and I are pretty close on things but I’d honestly rather have a loose confederation of states that work together where they can and should than anything with a federal component. The federal component in place is what would make this protracted nightmare possible all over again but it would only happen more rapidly this time around as honor, dignity, integrity and morality seem to be much more scarce than at any other time in the history of what was the USA.

    • Chris T. September 2, 2010, 9:04 pm

      Becareful what you wish for.

      As Chuck Baldwin (uhoh) has warned more than once, the voting by states to call up another conventions is very close to being complete, especially when those claiming a state CAN NOT rescind its call-up vote prevail (some states have done so).

      There is just no reason to think that our MASTERS, who have been corrupting, hollowing-out, or simply ignoring the only thing still putting any fetters on achieving unlimited control, would let a new Constitution emerge, that would right the wrongs they inflicted on the old one.

      There are no Jeffersons, Madisons, Jacksons around today that would represent the right side, so the Hamiltons would prevail for certain.

  • Steve September 2, 2010, 3:57 am


    And who elected Dodd ? And Barney and the Bunch ?
    Don’t forget the Repubicrats who had control and did WHAT ?

    “. . . the national and state. . .not being foreign to one another. . .as the State. . .are, but; subordinate parts of one complete system of government.” Bennett v. Bennett 1 Deady 307. (Mobocracy)

    What is all that attorney talk ? ‘The State’, and ‘state and national’ – what does it all mean ? Really, Dodd was elected under the Reconstruction Acts of 1867 in a voluntary military voter scam by corporate enfranchisees who were required to register to advise the commander in chief as he flies the Military Colors (check Veterans of Foreign Wars) (or 4 U.S.C. 1) ! What ever do you mean ? What do you mean read The State of Georgia v. Stanton sec. of War 73 U.S. 50 (1867). Whatever do you mean ?

    What is that word ‘Standing’ ?
    What do you mean you cannot bring suit constitutionally unless you have a inheritable Right to the Soil, jus Soli ?
    What does it mean “Ripe” ?

    What do you mean that Christopher Dodd’s seat legislatively created U.S. subjects via the 14th amendment ?

    What to you mean ? Christopher Dodd’s in his Senate Rebellion is the Creator of all persons by legislative act ?

    One question. How do you know the nature of the country if one does not study history, that is yesterday ! Well I was inauthentic and disingenuine – what ever do you mean a country and a Nation are not the same thing.
    And if what I said was just inauthentic and disingenuine why in the world would anyone vote for any current sitting political hack ?

    • Grass Ranger September 2, 2010, 4:40 am


  • jj September 2, 2010, 3:39 am

    This is not a knock from a Canadian but I’ve often wondered “what the H is going on in the US” ???

    Where is the outrage at what your politicians are doing to your society?

    The US is becoming the laughing stock of the world, but there’s nothing funny about whats going on in the USA!

    Don’t bother pointing any fingers… as we here in Canada have our heads so far up our wazoo’s we think our real estate and our banks are immune to the after effects of what your Wall St and Bankers have created on a global scale, the true weapons of mass destruction OTC’ derivatives

    You may not have any Gold in Fort Knox as your govies won’t allow a private audit, we don’t have that problem in Canada…. we know we own ZERO gold!

    God help us all !!!! we are going to need it!!

    Money and Power=the root of ALL EVIL