Archive for the ‘Economics’ Category
The Economy Tanks, The Fed Makes Off Like a Bandit
Posted by Benjamin J. Thompson | Filed under Economics, News
While Main Street starves, the Fed feeds Wall Street what’s left of America’s wealth.
The Washington Post reports that the Federal Reserve pulled in $45 billion in 2009. In 96 years of operation, the Fed never made so much money in a single year.
From the article:
Wall Street firms aren’t the only banks that had a banner year. The Federal Reserve made record profits in 2009, as its unconventional efforts to prop up the economy created a windfall for the government.
With unemployment climbing to Great Depression levels, businesses shuttering and too-big-to-fail getting by only by government life support, exactly what was the Fed doing that was such a grand profit center?
It might have something to do with this:
This hockey stick graph should concern you a lot more than Al Gore’s. Federal Reserve loans to banks have jumped astronomically. It would be crazy if the Fed didn’t rake in monstrous profits. The Federal Reserve has the unique privilege of not only originating the money, but also of collecting interest on loaning it out.
That is the source of the “record profits,” which are not so much profits as they are stolen property. Neil Irwin, who wrote the article at MSNBC.com, got it wrong when he said that “The Fed, unlike most government agencies, funds itself from its own operations and returns its profits to the Treasury.” It does indeed give money to the treasury, but the way it makes its money is not fundamentally different from tax-funded agencies. The arbitrary printing of money is just a stealthier tax. It’s a tool of wealth redistribution that simply debases the dollars rather than taking them directly out of your paycheck. When the government bailed out AIG, FNM and FRE, when they bailed out Citigroup, Bank of America, GM and Chrysler, it was all with stolen funds. Conservatives are fond of saying our children and grandchildren will have to pay that debt, but we also pay it right now. The economy could have recovered by now, but instead, the resources that would have gone toward recovery were shifted without our permission to the most worst-performing businesses in the market. Those companies should have simply taken their losses, declared bankruptcy, and let the rest of us get on with life.
Since the Fed spent 2009 redistributing your hard-earned wealth and mine into the balance sheets of the Wall Street gang, collecting a hefty fee along the way, of course both of them are going to have “a banner year.” Enron had a banner year in 1999.
Currently Reading Roundup
Posted by Benjamin J. Thompson | Filed under Economics, Essays, Fiction, Liberty, Literature
At the moment I am working my way through the following books:
- End the Fed by Ron Paul
- A Fire Upon the Deep by Vernor Vinge (this is my second read through)
- Socialism by Ludwig von Mises
End the Fed
It may just be the fact that I am a ravenous reader of LewRockwell.com and Mises.org, but End the Fed is by far the quickest, easiest read out of the three at the moment. Ron Paul was never a stunning public speaker, but his writing — or what becomes of his writing when his editor(s) get through with it — is concise, incisive and accessible. Amazon.com was gracious enough to send the book early, and in spite of not cracking it open for several days, I’m most of the way through it. He starts by making the case for why the issue of monetary policy is so important, then walks the reader through his own intellectual journey, his experience of history so far, and his confrontations with past chairmen of the Federal Reserve. Further on, he makes several cases as to why a 100% reserve, hard money standard is vastly superior to what we have now.
A Fire Upon the Deep
I read this book years ago while still lazily studying computer science at UW Whitewater. I recently read the prequel (A Deepness in the Sky), which is in part a brilliant parable of liberty versus tyranny. Knowing a little more of Vinge’s political philosophy drove me to re-read this book, since I picked up so few of those hints the first time around.
Just as in A Deepness in the Sky, Vinge takes for granted at every turn that the reader is curious and observant. I’d been reading so much economic commentary, and so much fluffier fiction in the Harry Potter books recently that Vinge was an intellectually challenging change of pace. It felt like the first day resuming an exercise regimen after a long hiatus.
Socialism
Precipitated by all the political tension around that word, socialism, these days, I decided I should read the book known as the ultimate refutation of every fallacy that feeds into the socialist theory. It is translated from German, and the man was notorious for his unique turns of phrase, even after translation. Reading Mises is a bit like seeing the same old room, but illuminated from the bottom. The light is coming at things from an unfamiliar angle, revealing obvious things you never saw before.
Anyway, that’s what I’m up to reading right now. I highly recommend all these books, but please start with End the Fed. Whether you know it or not, it is at the root of every political issue today. The arguments might be about jobs or health care or bailouts or wars, but we will be facing the same problems over and over again until we confront central banking, for it is loose monetary policy that makes possible all the evils that bad politicians waste money on.
Frontal Assault on Freedom Part II: Liberty Dollar Leaders ARRESTED
Posted by Benjamin J. Thompson | Filed under Economics, Liberty
I just received the following email. You can read the entire text of it below. Back in November of 2007, I broke the story of the FBI raid on the Liberty Dollar offices and vault (just by merit of being the first one to recognize the email announcement they sent out as legit). It looks like the war on sound money is continuing. Bernard von NotHaus, Kevin Innes, and two others referred to only as Sarah and Rachelle have been “detained,” and apparently set free. This is harrassment at best, and political intimidation at worst, especially since the Liberty Dollar is invovled in an ongoing legal battle with the federal government.
There is no legitimate reason for the arrest of these individuals. They were involved in a perfectly legal business, and were not engaging in any violent or fraudulent activity. The only reason for their persecution is that they were providing the most viable alternative to the US Dollar. In other words, a threat to centralized power. The Wall Street controlled regime in Washington needs to preemptively remove Dollar alternatives before they collapse it and impoverish the country. Any alternative to the unbacked fiat US Dollar is a way for the American people to avoid paying for the insane spending of our federal government.
This is how tyranny happens, people. The quiet intimidation or arrest of political enemies. Do not wait for this to show up on the front page of USA Today. It won’t be there. Even if you disagree with the techniques of the Liberty Dollar organization, or even if you don’t think asset-backed currency is a big deal, keep in mind that these people are innocent. They were political prisoners.
I guess we can take some consolation in the fact that the bureaucrats who harrassed them were at least polite about it.
LIBERTY DOLLAR ALERT:
June 2009 Vol. 11 No. 06-A
Urgent News for All Liberty Dollar Supporters!
FBI Arrests Bernard, Kevin, Sarah & Rachelle
The battle for a value based currency has began!
The last two days have been amazing! Just shortly after midnight on Tuesday, the phone started ringing and I let the answering machine take the call. But very soon there was another call with an even more urgent message! Very quickly, a friend of Kevin Innes, explained to me that Kevin had been “detained” by the local sheriff and was being held for the FBI to arrest him! Holy Cow!! The #2 supporter for the Liberty Dollar and co-instructor at the Liberty Dollar University training sessions was in deep trouble with the Feds! I was sure to be next. But would they arrive in a few minutes or would it be a pre-dawn Nazi style assault?
Finally, I got up at 4:00 AM. I was very concerned for Kevin and wondered when the FBI would hit me. Fortunately the morning was quickly filled with a flurry of calls from Kevin’s friend, other interested parties, the usual business calls and making preparations for the inevitable knock on the door. But nobody came. Then just after noon, Niles, who’s wife, Rachelle, manages the Liberty Dollar Fulfillment Office, called to tell me that Rachelle had been picked up by the FBI at the LD Office and was due to be arraigned in just a few hours! The FBI strikes again!
Luckily, I was able to talk to Rachelle via her cell phone while the FBI was holding her. I was pleased that the FBI agents were the friendly professional types and afforded Rachelle and I quite a few minutes of private conversation. Under the circumstances, Rachelle’s demeanor and resolve was right on target. And very quickly, I learned that a warrant had been issued for my arrest. And just a quickly, Rachelle was off to court to be arraigned.
Much later in the afternoon, I learned to my surprise that three big FBI agents had arrested Sarah at work. She and Rachelle were arraigned together and quickly released to on their own recognizance (OR) before the sun set on a very eventful day for the Liberty Dollar. The quick, professional effort with Sarah and Rachelle were gratifying and encouraging. Unfortunately, I was to learn that Sarah lost her job because of this event.
By last afternoon it was clear that the Liberty Dollar would be best served by my turning myself in to the to the US Marshals, otherwise know as ’self reporting.’ After a few calls, I found myself talking to Agent Andy (aka Agent F) who was his usual friendly, chatty self. He even recognized my voice although we had only spoken twice and that was over 18 months ago. Sure enough he confirmed that a federal arrest warrant for my arrest had been issued. And after a bit of gamesmanship with Agent Andy, I agreed to report to the US Marshal’s office in Fort Myers, Florida at 9:00 AM on Thursday morning as it was too late to be arraigned, plus an overnight in jail would have wrinkled by clothes 
The following morning, Thursday, June 3, 2009, I actually arrived at the Marshal’s office at 8:30 due to light traffic. As the saying goes, “If you gotta do time, do federal time.” Quite simply, the federal boys are better educated, better trained and have better manners. I was immediately escorted to a holding cell. After an hour or less, I met with the Pre-Trila Service rep and made it to court at 11:00 in chains and handcuffs. The female judge was businesslike and granted my request to attend my son’s graduation in Physics from UCLA next week. After fingerprinting, signing a $50,000 Appearance Bond, one final meeting with the Pre-Indictment Service rep, I was free.
In general, the arraignment was a pleasant affair. The US Marshals did their job with very little attitude, as they should. After all, I am self reporting, and it is for anything violent, I just want to prove that I have a right to issue my own currency and if any body chooses to use it then it is a “private contract.” It is certainly not a crime.
And so it came to pass, 2009 years after the birth of Christ, that four regular Americans have taken a stand to defend the People’s right to protect themselves from a government currency that has a long and unforgiving history of stealing the people’s purchasing power. This is a test of individual rights, as protected by the Tenth Amendment. It is the deciding moment that a private voluntary barter currency (PVBC) is legal in the great United States of America. This is a test that the Liberty Dollar must and will pass, for that I have no doubt. But it will not be easy or cheap. Please, if you support our efforts, support us with any kind of money you have, including pro bono services. Now that the Liberty Dollar faces a federal criminal trial, it is the US Government v Liberty Dollar ala Bernard, Kevin, Sarah & Rachelle. Please help us win. Please help yourself win. Please help American win.
Very simply this is a Win or Lose battle. In addition to money for this legal fight we need articles that reference non-government currency, such as Air Miles as currency, legal research assistance, expert witnesses, legal assistance, etc. If you support the ideals of the Liberty Dollar, this is the time to get behind the Liberty Dollar. We critically need your help! Please send your digital info to Legal@LibertyDollar.org and your donations of value including other kinds of “currencies” to:
LIBERTY DOLLAR
225 N. Stockwell Road
Evansville. Indiana. 47715
The best news is that the Liberty Dollar finally has the opportunity to prove beyond a shadow of a doubt that it is legal. Over two years ago I sued the US government for a Declaratory Judgment to resolve the legality issue. And how did they respond, they raided the Liberty Dollar and confiscated over $4 million dollars in gold, silver and cash. The US government has done everything possible to kill the Liberty Dollar! And guess what? It has not worked. The mere fact that the Liberty Dollar is still in business is a testament to your demand for Real Money and the ideals that the Liberty Dollar represents.
Thank you, thank you, thank you for your support! Trust me, the Liberty Dollar is not made up of any fat cats. We are all just regular Americans. And we all just want good money, a lot less government and no damn war!
Click HERE for a stilted Press Release by the DOJ. Its three pages with a whopper by Owen Harris, Special FBI Agent in Charlotte who said, “When groups try to replace the US dollar with coins and bills that don’t hold the same value…” WOW what a telling statement of pure spin.
Click HERE for the 13 page Indictment.
Click HERE for Sarah’s Arrest Warrant.
Guess what?! Liberty Dollar still in business and we need more business! As there has been no Cease and Desist Order, Liberty Dollar remains OPEN FOR BUSINESS. Please visit our shopping cart for all the 2009 Liberty, Peace, Freedom, T-Dollars and more. Don’t be bashful or stupid. Silver is going to the moon, just as sure as the US dollar is going to hell with your purchasing power. Now is the time to protect your purchasing with the “inflation proof” currency and help usher in a new monetary model that provides the only proven, peaceful, and profitable solution to the monetary cancer that has infected America.
OUTSTANDING ORDERS: Please rest assured that we will fill all outstanding orders. Yes, after producing a sizable amount of pre-minted Silver Libertys and finally getting current with most orders, we changed mints and are now behind again. We apologize emphatically! Poor and/or slow delivery is not acceptable business. It hurts everyone. And just when we were about to get current again we were arrested. Please continue to support us with your patience too. We promise to get every order out ASAP. But as I hope you can understand, it is a struggle to run a business, any business, in such an environment and fight a major legal battle for our right to protect our purchasing power
The last few 2009 Arrest Dollars. Are you familiar with the Arrest Dollars? Starting in 2007 and continuing through this year the Arrest Dollar is one ounce Silver Liberty that is specially hand hallmarked with a micro “handcuffs” stamp and my federally registered mintmark. Issued only from the day of the raid to today. The last few 2009 Arrest Dollars are currently on the Shopping Cart. After these are gone, they are gone to eBay for much more money.
The 2009 Tea Party Dollar (T-Dollar) is still available and we are still waiting confirmation on the shipment. We are still expecting to have the first batch order in the first 24 HOURS here for the July 4 events. The T-Dollar is still only a buck for an ounce of copper AND you can still get them for 10% discount to they $1 face value for a 100 or more. Hey, they are only a buck you can’t go wrong. Plus every copper issue has sold out. Get these while you can and help support our legal efforts tooJ
The 2009 Silver Libertys! The backbone of the Liberty Dollar model is the one ounce .999 fine silver Lib! Just in the last few days, silver has bounced back over $16, soon the 30 day moving average will be $16 and the Liberty Dollar will Move Up again to the $50 Silver Base. PLEASE don’t be dumb and buy silver when it is high. Get it NOW!!! Sure it is not $5 per ounce any more, nor will it ever be again. $5 silver is just not possible with the government spending phony baloney fiat money like a drunken sailor. Please order silver now and protect your purchasing power and profit tomorrow!
Stay tuned to the Liberty Dollar News as we vindicate and validate the legality of the Liberty Dollar. Please take an active role in this exciting and profitable time. Don’t lose out. Get involved with the Liberty Dollar to make money, do good and have fun. I am having as much fun in my 60’s and I did in The 60’s and hope you are too.
Thanks again for your support.
Bernard von NotHaus
Monetary Architect
Editor@LibertyDollar.org
www.LibertyDollar.org
888.LIB.DOLLAR
888.421.6181