Posts Tagged ‘federal reserve’

The origin and nature of currency systems

October 5, 2015

Right below the photo is my introductory comment and then quite an exchange on the nature of currency systems.


This is kind of an odd question (in the image). If I sign a 12 month lease to rent a place to live, that is the creation of a legal debt. If a government invents a fine for driving above a certain speed limit and then says that I owe them $100,000 for speeding, that is also the creation of a legal debt.

Generally speaking, governments are systems of inventing legal debts (“out of thin air”) and then extorting / coercing the human resources to seek out a government-approved currency in order to pay the government enough wealth to cover the debts invented by the government and thus avoid arrest, imprisonment, confiscation of property, and of course public rituals of human sacrifice.

Jeanette Perez, Christine Kraus, James Levreau and 24 others like this

  • David Limacher

    David Limacher Erase the debt.

  • J R Fibonacci Hunn

    J R Fibonacci Hunn David, please read my comments above the photo. Erasing declared debts would in no way prevent the declaring of new debts (by consent in contracts or by coercion through governing systems).

    Like · Reply · 3 · 22 hrs
  • David Limacher

    David Limacher Yes much needs to change…

  • David Limacher

    David Limacher I am optimistic.

  • David Limacher

    David Limacher I’m tired of trading my time for the privilege of Babylonian money magic.

    Like · Reply · 1 · 22 hrs
  • J R Fibonacci Hunn

    J R Fibonacci Hunn Changes happen, either quickly or slowly. For instance, currency systems form, stabilize, and destabilize.

    Some people (such as myself) become curious at some point about historical trends and forecasting future trends. Since 2002, forecasting changes in prices has been a major investment of my time. On occasion, my forecasts have produced quite large gains in short periods of time. October 23rd was such a time.

    Like · Reply · 1 · 22 hrs
  • J R Fibonacci Hunn

    J R Fibonacci Hunn I do not think that there is anything magical about monetary systems. Governments invent taxes out of thin air and then specify certain kinds of payments that they will accept (to discharge the debts that they invented). If they accept silver coins, then demand temporarily increases in that geographic area for silver. If they accept diamonds, the demand temporarily increases in that geographic area for diamonds. So what?

    Like · Reply · 1 · 22 hrs · Edited
  • J R Fibonacci Hunn

    J R Fibonacci Hunn What we also can notice is that from time to time governments may promote demoralization programs to confuse the masses about the simplicity of a public currency system or private currency system. People are programmed to be ashamed of wealth or even of modest ownership of property. The highest goal of a statist is to be dependent completely on the particular governing system and to advocate that the elite that run the governing system will have a total monopoly on economic discretion, redistributing wealth from the middle class to the government elite.

    Like · Reply · 1 · 22 hrs · Edited
  • Ben Belty

    Ben Belty I think of money being magic in the occult sense not the type that is associated with circus acts etc.

    Unlike · Reply · 2 · 21 hrs
  • J R Fibonacci Hunn

    J R Fibonacci Hunn On a related note, I find it notable how so many people who are influenced by mainstream Christian views seem to know so little about commentaries on the scriptures of the Bible made by those Who are fluent in the original languages used in the writing of the Bible.

    Jesus repeated the teachings of Isaiah by saying “in vain they worship me, presenting the traditions of man as the principles of God.” There is a similar passage in regard to the adoration of money being the root of many forms of social disorder. Is money itself the root of social disorder? That is not what the Scriptures say in any language or in any translation.

    A presumptive adoration of money is not innocent curiosity and mindfulness in regard to wealth. A presumptive adoration corresponds to negligence. Negligence can produce a variety of socially unfavorable outcomes.

    Like · Reply · 1 · 21 hrs · Edited
  • J R Fibonacci Hunn

    J R Fibonacci Hunn So, beware of negligence. Beware of the negligence of presumptive adoration. There is no substitute for mindfulness and respect. When those are present, then perceptiveness increases. When absent, confusion increases.

  • J R Fibonacci Hunn

    J R Fibonacci Hunn Also, be aware of the negligence of presumptive contempt. There is a reason that governments put so much investment into promoting presumptive contempt among the masses (contempt for each other and for the government). However, that reason is not for the benefit of each and every individual organism within the reach of that government’s system of extortion and coercive influence.

  • J R Fibonacci Hunn

    J R Fibonacci Hunn Ben, you are welcome to expand on your comment. However, I recommend that you read through my comments first (those above and those below).

  • J R Fibonacci Hunn

    J R Fibonacci Hunn The word occult literally means that one thing has been covered by another thing. The Greek words for “throwing a label across something” are dia-bolos (across-throwing). Those Greek roots make the English words diabolical and devil.

    Like · Reply · 1 · 21 hrs
  • J R Fibonacci Hunn

    J R Fibonacci Hunn Money, however, is not something that has been covered. The system is actually relatively open. There are a variety of psychological warfare programs to confuse reactionary patriots and libertarians and so on, but the reality of all money systems is quite simple and uncontroversial (as to what it is and how it works).

    Like · Reply · 1 · 21 hrs · Edited
  • J R Fibonacci Hunn

    J R Fibonacci Hunn The idea that any government is fundamentally a democracy is a clear occultation of the facts. Governments may have democratic processes such as the voting by the members of the jury or schoolchildren voting for the student body president. However, the student body president has strictly limited authority.

  • J R Fibonacci Hunn

    J R Fibonacci Hunn Some Christians will even present strange ideas such as an almighty Deity who is apparently vulnerable and anxious and threatened by some isolated other force besides the Almighty.

  • J R Fibonacci Hunn

    J R Fibonacci Hunn By using the single English word God as the translation for a variety of Jewish words such as Elohim (which is plural) and Hashem (which is singular), there is an occulting of the actual Hebrew Scriptures.

  • J R Fibonacci Hunn

    J R Fibonacci Hunn It is Hashem that was competing against a celestial being with generally similar powers, which we may refer to as a fallen angel or the devil. However, the Elohim created Hashem and the Angels and Titans and ETs and us. When Jesus was challenged by the Pharisees on this point, he scolded them reminding them that their scriptures clearly state “ye are gods.”

  • J R Fibonacci Hunn

    J R Fibonacci Hunn At a local university, the mascot is a type of devil and the symbol on the side of the football helmets is a trident. That fallen angel who bears a trident in Christianity was known by the name Neptune to the Romans and the name Poseidon to the Greeks.

  • J R Fibonacci Hunn

    J R Fibonacci Hunn Those who lack perceptiveness may think that if I say a type of red and someone else says maroon and someone else says the word for maroon in a few other languages, then we all must be talking about different things because we are using a different word to label.that is precisely the kind of negligence and presumptiveness that Jesus warned about a few thousand years ago when quoting Isaiah, who lived perhaps a few thousand years before him and warned of the same issues.

    Like · Reply · 1 · 21 hrs · Edited
  • J R Fibonacci Hunn

    J R Fibonacci Hunn What is a typical method used by this celestial being called Poseidon? That being would stir up a lot of distractions and excitement in order to confuse his foes. If anyone were to research mythology or astrology, you could find frequent references to Neptune as the ruler of confusion.

    Like · Reply · 1 · 21 hrs
  • J R Fibonacci Hunn

    J R Fibonacci Hunn Religions such as the one we know as the United States of America will often use programs to promote confusion amongst the masses. However, The nature of money is not what is being hidden with deceptions usually. They completely neglect to mention that subject although The reality is obvious to anyone who observes the nature of monetary systems.The deceptions are being used to distract people from the otter simplicity of the nature of monetary systems and systems of organized coercion, Also known as governments or crime syndicates.

    Like · Reply · 1 · 21 hrs · Edited
  • J R Fibonacci Hunn

    J R Fibonacci Hunn In conclusion, it is a deception when agent provocateurs suggest that monetary systems are magical. School indoctrination rituals and the indoctrination rituals of mainstream media are quite magical and that is so that they can distract us with hysteria about cholesterol or gun control or transgender rights. What do they distract us from? They distract from the basic nature of the coercive system of systematically redistributing wealth.

    Like · Reply · 3 · 21 hrs · Edited
  • Rick Laviolette

    Rick Laviolette I agree. In chess it is a diversion, or a sacrifice with a means to an end. Our debt was created and the money went to private citizens in the world who lend our own money back to us to pay for the debt they created. History repeats.

  • J R Fibonacci Hunn

    J R Fibonacci Hunn Rick, when people say “lend OUR OWN MONEY back to us,” they are repeating propaganda slogans. When a casino “mints” some plastic tokens and then offers them to some people in exchange for working as soldiers of the casino, what does that change about the origin of the token system? When the casino says “whoever resides between these two coastlines (or rivers etc) must pay us property tax in the amount of 100 tokens per year per acre of property,” again that changes nothing about the origin of the system.

    • Rick Laviolette

      Rick Laviolette It must be our money since we, the taxpayers, have to pay it back.

    • Rick Laviolette

      Rick Laviolette That money is secured by US assets and property.

      Unlike · Reply · 1 · 7 hrs
    • J R Fibonacci Hunn

      J R Fibonacci Hunn Being a taxpayer within a particular political jurisdiction is a temporary condition (which individuals and businesses can change by moving from one jurisdiction to another).

    • J R Fibonacci Hunn

      J R Fibonacci Hunn As for “pay it BACK,” that tends to imply that I received something which I must return. If a governing system invents a crime called “speeding” and then says “anyone caught speeding must serve two years in our navy as a soldier,” then the “debt” thatSee More

      Like · Reply · 1 · 4 hrs · Edited
    • J R Fibonacci Hunn

      J R Fibonacci Hunn In return, the gangster can offer “protection” against vandalism (specifically, against vandalism by that gangster).

    • J R Fibonacci Hunn
      Write a reply…
  • J R Fibonacci Hunn

    J R Fibonacci Hunn The “magic” of the deception about money is all linguistic. It is programmed in the public school indoctrination rituals which teach the human resources that “this is YOUR plantation and slaves here get 16% better medical care than in the plantation to the west!”

    Like · Reply · 2 · 9 hrs · Edited
  • J R Fibonacci Hunn

    J R Fibonacci Hunn “The plantation system’s casino tokens are YOURS. Also, the holy scriptures of YOUR religion are unlike all other holy scriptures ever before because we used YOUR Ink (24,000 years before you arrived) to make YOUR system.”

    • Rick Laviolette

      Rick Laviolette Do you propose anarchy? I see a political system as effective for peaceful coexistence. Not everyone grabs the brass ring and wants all the gold.

    • J R Fibonacci Hunn

      J R Fibonacci Hunn I propose personal practices of mindfulness, prudence, and wise investment. (I offer a service of managing the private investment accounts of my clients.)

    • J R Fibonacci Hunn
      Write a reply…
  • J R Fibonacci Hunn

    J R Fibonacci Hunn The idea that the Federal Reserve’s private currency system (and private system of organized coercion and extortion) is “ours” is a very remarkable idea (even “magical”). The reality of how currency systems work is very simple.

    • Rick Laviolette

      Rick Laviolette That is not ours. It was interjected with designer laws to strip our assets.

    • Rick Laviolette

      Rick Laviolette Not much we can do unless we systematically vote them out and new politicians appoint our judges.

    • J R Fibonacci Hunn

      J R Fibonacci Hunn I was not born with legal ownership of anything. Of course governing systems redistribute wealth from the human resources to the government and to the beneficiaries of the government (who in large part are the special interests that form and guide governments).

      Like · Reply · 1 · 4 hrs · Edited
    • Rick Laviolette

      Rick Laviolette I own mine until I miss the taxes or eminent domain is enacted. One reasonably large asteroid will settle the ownership thing.

      Unlike · Reply · 2 · 4 hrs

War, the Wizard of Oz, the Fed, & John Galt

December 6, 2012
Phil wrote: “Conservative bashing is a popular sport for some, as is Liberal bashing for others.  Neither of which, IMO, makes a positive contribution to moving ideas forward and solving the mess this country has gotten itself into….”

 wizard of oz


Governments in the region of the US have entered massive debts since back when the states were only colonies- including during the revolutionary war. Any selling of government bonds is entering in to debt. Wars tend to be promoted by lenders because they are typically so profitable for the lending businesses. When the USSR and US were spending huge amounts on their military race, that was strongly encouraged by lobbyists of the banks that lent money to either side- or even to both sides.
Go Away Federal Reserve System!

Go Away Federal Reserve System! (Photo credit: r0b0r0b)

In 1913, as the next massive war in Europe was being cultivated and planned, the US entered in to 20-year debts connected to a private banking consortium called the Federal Reserve, and that may have seemed great at times (the roaring 20s), but toward the end of the 20 year period, the US had so much economic trouble (AKA “The Great Depression“) that paying that debt was not going well. In 1933 (at the 20-year mark), the Federal Reserve took functional control of the court system in the US by requiring the use of their private currency (the Federal Reserve’s “US Dollar” Note) and all the US Notes that had been in circulation were withdrawn from circulation and possession of gold by US Citizens was criminalized (forcing citizens to exchange gold for Federal Reserve Notes). In other words, the court system was “re-possessed” by the lender/creditor, kind of like a car that has been financed may be sent back to the dealership if the debtor goes bankrupt. So, the Fed collected all of that gold from the citizens of the US and then on January 31, 1934, the Fed dropped the exchange rate of their private currency to gold by 41% overnight while the masses slept.
oz: crowned heads of europe
Related to all of that is this next item. Back in the year 1900, a popular book was published as an analogy for how the “Crowned Heads of Europe” would achieve their financial goals in the US. The book featured a yellow brick road about gold bricks (yellow bricks) that led to the center of power and influence.
The methods of how the masses would be drugged to sleep were referenced as the troop of heroes led by Dorothy marched through poppy fields (as in opium fields). Outside of the dream portion of the story, the character of a Wicked Witch was known as Mrs. Gulch. A gulch is another word for a depression as in a dip.
You probably recognize by now that the book I am referencing is the Wizard of Oz (if the title of the blog did not give it away…), which was made in to a movie in 1939 (and a less well-financed version in 1925). It sets up a series of analogies about how the “Crowned Heads of Europe” would entice the common people of the US in to going to fight a wicked enemy so that AFTER they came back from victory THEN they would be GIVEN courage by holding a magic piece of paper.
Magic pieces of paper are cool. I use them everyday to buy stuff. They give me LOTS of courage, too! 😉
The back cover of The Wonderful Wizard of Oz, ...

The back cover of The Wonderful Wizard of Oz, ©1899 (Photo credit: Wikipedia)

So, in 2002, I read about the history of OZ (as in ounce- like the unit used to measure an Oz. of gold). That was around the same time that I started reading (and, in 2003, publishing) references to the global credit crunch that was emerging, as well as the impact on markets most sensitive to lending, like real estate. In 2004, I began focusing my publications on the specific issue of why fuel prices (like gasoline) were rising and likely to spike soon (like when gasoline in parts of Europe quickly went from $3 per gallon to over $11 per gallon), plus the predictable consequences of such a spike in fuel prices. I published “The real U.S. deficit: OIL” and then “Worth it’s weight in… OIL!” (which was a parody for the gold market enthusiasts who were still trumpeting the same falsehoods about gold that have been well-established as inaccurate since 1980, if not long before….)
Anyway, by 2005, I was watching closely for the first signs of a real estate crash in the US (as had been happening already in other parts of the world). The two areas that peaked first (and have fallen the furthest so far) happened to also be regions extremely sensitive to spiking energy prices, perhaps due to extremely high summer cooling costs in the sprawling desert metros of Phoenix and Las Vegas- like when someone is commuting 50 minutes each way in 105 degree heat with their vehicle’s AC cranked. Other suburbs throughout the US did not have that circumstance like greater Las Vegas and greater Phoenix, so the real estate decline did not hit in those places until later, and not as hard. 
English: "Anna Laughlin as Dorothy in the...

English: “Anna Laughlin as Dorothy in the musical extravaganza The Wizard of Oz, 1902” (Photo credit: Wikipedia)

In contrast, we can review Alaska, a fuel-rich state, and notice that there was a very different economic development during the same time. As oil prices rose 1200% from 1999 to 2008, Alaska’s oil exports ballooned their state’s economy, launching it up to the 2nd highest state in the US for per capita income. Further, while other state governments in the US were scrambling to figure out their budget issues (like how to borrow more money to stay in operation), Alaska was paying it’s citizens a socialist-style handout of several thousand dollars a year just as a dividend for living there. Where did all that surplus money come from? Surging oil revenues.
Magic pieces of paper are still cool, but so is magic liquid that can be used as fuel to fly airplanes and power automobiles. Also, magic little shapes called letters and words are very very very cool- like the magic sounds that people can use to direct the attention, perception, and activity of other people. 
For instance, when a group of people get together and use intimidation and violence to force other people to pay them a portion of the productivity, what is that called? It is called extortion- except when it is called taxation. If the system of wealth redistribution is stable enough, it is called taxation and the agents of the system protect their monopoly on involuntary wealth distribution by violently punishing any competing extortion operations (or invading them to take over their territory and their racket). 
Some economic interests favor cultural developments like masses being distracted by trivia (and the cultivation of psychological shadows of  hysterical outrage), as well as the “entitlement society” and “enthusiastic borrowing sprees.” When the ownership of massive amounts of real estate changes suddenly, that is not only rather unfavorable for the debtors getting foreclosed on, but can be rather good for the creditors who suddenly own huge amounts of real estate outright.
Federal reserve police car, St. Louis, MO

Federal reserve police car, St. Louis, MO (Photo credit: Wikipedia)

Wizard of Oz (1925 film)

Wizard of Oz (1925 film) (Photo credit: Wikipedia)

Here are a few articles of mine that give more detail to recent history, and the first one has several links to my original publications plus a link to a video I made in November 2006 in which I reference events well-known by 2008:
“When the credit market shifts, [then] the real estate market shifts, and they are actually connected such that when the real estate market declines… that  actually greatly effects [lenders] capacity to extend credit. So, what you have is a context where banks can collapse.”

 wizard oz

Title plate of The Wonderful Wizard of Oz (not...

Title plate of The Wonderful Wizard of Oz (not the cover, it’s the interior title page), 1900 Wizard (Photo credit: Wikipedia)


On Thu, Dec 6, 2012 at 9:55 AM, Phil P. wrote:

Conservative bashing is a popular sport for some, as is Liberal bashing for others.  Neither of which, IMO, makes a positive contribution to moving ideas forward and solving the mess this country has gotten itself into.


I am a fiscal conservative and always have been.  In addition, I am culturally tolerant, and always have been.  I graduated from high school in 1963, six months after JFK was assassinated.  I was in an auto store buying parts for my drag car when the news came over the old black & white TV behind the counter.  My mother had shaken JFK’s hand at the Lubbock airport during a campaign stop.  The country was going to the moon… there was pride & excitement in the air… and then the world stopped.  Even though government spending was a lot smaller in 1963, I remember thinking that foreign aid seemed like a bad idea.  Today’s solution of borrowing money to keep government programs running would have been considered blasphemy.


It used to be considered honorable to graduate from high school, get a job, work, pay your taxes and make a positive contribution to society.  Nowadays, by an increasing number, it seems honorable to not work, and scheme a way to get a government check.  We have welfare recipients that are on the 3rd/4th generation of no one in the family having ever held a job.  And our government continues to want to grow entitlement programs to enable the recipients… even if we have to borrow the money.  The concept of personal responsibility seems to have been lost in the entitlement, feel good society.  As a fiscal conservative it makes no sense to me why some think it is a good idea to borrow money from China so Sandra Fluke can have free birth control.


Ronald Reagan has been called one our countries most successful presidents.  Yet I was flabbergasted by his military spending, even though some would argue that was the only way to break the Soviet Union… by out spending them militarily.  And while it did work… IMO it was fiscally imprudent.  I also disagreed with Reagan’s attitude toward AIDS.  I lost many business associates to AIDS, great minds, great spirits because, IMO, of Neanderthal thinking from the White House.  The plague created a void of creativity in my world that has lasted for over 30  years.


In the 49 years I have been voting there has never existed the political will for a smaller government… and IMO, there has never been a “fiscally conservative” president.  The policies of both parties have always been to expand, control and increase the governments power over the people… through regulation & taxation.  As a small business owner I watch the policies of the current administration continue to do harm to the small business economic environment, while at the same time wasting huge sums of tax payer dollars on projects like Solyndra.  IMO, we don’t have a taxation problem, we have a spending problem.


English: Protester seen at Chicago Tax Day Tea...

English: Protester seen at Chicago Tax Day Tea Party protest with sign reading “I am John Galt”. Edited to protect protester’s identity. (Photo credit: Wikipedia)

Where is John Galt?


John Galt. One of the founders and Secretary o...

John Galt. One of the founders and Secretary of the Canada Company. (Photo credit: Wikipedia)

the Knowledge of Good and Eve: a parable about Ron Paul, myths, and Santa

April 23, 2012
Santa Claus

Santa Claus (Photo credit: Christopher S. Penn)

Imagine a six year-old kid talking about Santa Claus, asking about some details that do not totally make sense to the child. An older sibling says, “do not ask mom anything about Santa. She would get angry and spank you. Just be quiet about Santa. If mom brings it up to you, just tell her what gifts you want and do not even mention the word Santa. I will tell you why later.”

What is the dynamic created by the older sibling? Mom is presented as a dangerous tyrannical authority and the sibling is the experienced ally with a crucial secret knowledge or insight about how to best deal with mom. Of course, higher up the social hierarchy is Santa, the distant, remote, mysterious benefactor.

In other terms, mom is the evil villain or devil and the sibling is the savior and protector while Santa is the God-like Power, like a superhero who can fly and has magic powers and is probably hundreds of years old. Except Santa is not just a cartoon like the comic book heroes. Santa is real. There is evidence. I opened the presents myself and the tag clearly said From Santa. Santa even knows my name!

Ron Paul at the 2007 National Right to Life Co...

Ron Paul at the 2007 National Right to Life Convention, held at Crown Center Hyatt Regency in Kansas City, MO; June 15, 2007, (Photo credit: Wikipedia)

So, fast forward a few decades. Ron Paul is talking about how the Federal Reserve is a Vatican conspiracy and all that we need to do for him to save us from them is to wait a few months and cast a vote. Plus, until then, he recommends that we invest everything in silver.

Ron says that the Federal Reserve is the great evil tyranny that has the power to inflate the currency, which according to  Ron, would be very bad. Why would that be so bad? Ron never actually mentions that. Apparently the idea is that the Fed should not have the power that Ron says they have, and therefore he must save us from the Fed doing the thing that they obviously should not do because they are inherently evil so we should just buy more silver because that is the patriotic and heroic thing to do, which Ron Paul has been consistently saying since 1980, which proves that we can trust his credibility and sincerity.

Alex Jones, who is also our heroic savior ally -which we know because he owns  silver – says that the distant remote superpower is the holy ink on the sacred document of the Articles of Confederation, which is the most powerful document in the world except for that one lottery ticket but that is anther story. Anyway, Alex says that Noam Chomsky agrees with Ron Paul that the real problem today is that The Fed says that the Articles of Confederation are actually not the authentic words of Santa and need to be retranslated by the Supreme Council of Justice, which wouldn’t be so bad except that Ron Paul is not a member of the Council and therefore the Council is evil. DarthVader says the Council is not evil, which further proves that DarthVader is either evil or naive or most likely both.

The Federal Reserve: The Biggest Scam In History

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Now imagine that the Articles of Confederation are just a series of three words. They have no more actual tangible power than the sounds of the word Santa. They are not even shapes on your screen or ink on paper. They are just some sounds that someone spoke a few hundred years ago around the time that Santa was your age.

Who is going to protect those sounds? Who is going to threaten those sounds? Who is going to record them as an audio file to upload to youtube? Who is going to keep them sacred and give them proper respect?

We need a hero. We need a ssvior. Inflation would reduce the value of the massive national debt, which must be avoided at all costs. Therefore, you must obey your older sibling and never mention Santa to mom again.


Sibling! (Photo credit: Gus Dahlberg)

the secret of reverse pyschology propaganda: resistance is creative attention

April 1, 2012

Resistance is attention and attention is creative.

This posts arises from a dialogue. Here is how it started.

Reverse of the Series 1934 $100 Gold Certificate

Reverse of the Series 1934 $100 Gold Certificate (Photo credit: Wikipedia)

Mrs. Hope Johnson wrote:
“Thanks everyone for your comments on this post. They have helped me to more deeply understand resistance and how it can be used to bring about peace and freedom.

Here’s a link to my most recent article, inspired by my interaction with all of you: ”


My response to her:

Hope, here is my reply to your post, with two links added at the end here. Your conversation is to me like a push against a stack of dominoes that I have been setting up for the last 7 years. Thanks and do enjoy. Comments are of course welcome.

US gold certificate (1922)

US gold certificate (1922) (Photo credit: Wikipedia)

re: “Just as eating optimal nutrients resists decay in the body by promoting physical health, so too does peaceful assertion of individual rights resist controlling or oppressive governmental forces by promoting freedom.”

I think of this re “assertion:” as we exercise authority, freedom, sovereignty, responsibility, and prudence, we practice intelligence in our investments of attention and other resources such as money. We organize our finances not around the default legal structures that benefit governments- like automatically putting our assets and revenues under “our own” SSN (it’s actually the SSA’s account, not yours or mine) and in our own legal name (again, a structure that is “legal fiction” as a corporate citizen franchise under the accounting and jurisdiction of the USA or UK or EU etc), such that they are exposed to maximum taxes and court liabilities.

In regard to the legal status of “CITIZEN,” I offer this quotation:
Citibank… is deemed a citizen of any state in which
it physically maintains branches.” – US District Ct of
Appeals, 1st Circuit, December 19, 2005.
See also

Further, there is the matter of the prudent allocation of investments, whether in a charitable trust or other structure explicitly exempt from taxation and legally protected by courts from most legal challenges or controversies. Most people ignore the obvious set-ups of recent decades, such as the retiring of the baby boom, and thus were surprised by market developments that I and many others have been forecasting for quite a while. (See

Rather than benefit from the emerging shift, many have poured themselves deeply into debt, aggressively entering markets like real estate and, more recently, gold. Citing the exact same rationalizations as gold investors did in the late 1970s, gold investors may be almost as disappointed as they were from 1980 to 2000… or even as disappointed as mainstream real estate investors have been recently and [according to my projections] will be much more so in the next few years… or even as disappointed as holders of US gold certificates in 1933, when the Federal Reserve foreclosed on the debts owed to it by the US Treasury and produced a “voluntary confiscation” by criminalizing the possession of gold certificates by US Citizens (but not foreigners, who were outside of the jurisdiction of the US and were not the underwriters or sureties of the debts incurred or billed to the taxpaying citizens by those Doing Business As the USA).

Detail of Preamble to Constitution of the Unit...

Detail of Preamble to Constitution of the United States Polski: Fragment preambuły Konstytucji Stanów Zjednoczonych (Photo credit: Wikipedia)

Citizens may complain of constitutions and rights, rather than exercising their intelligence and responsibility. They may ignore the provisions in the US Constitution for the explicit acknowledgment of treaties as one of three components of the supreme law of the land:

Here is the “Supremacy Clause” of Article VI: “The judges of every
state shall be bound” by “this Constitution, the Laws of the United
States which shall be made in Pursuance thereof, and all Treaties
made, or which shall be made, under the Authority of the United
States, [which] shall be the supreme Law of the Land.”

For more, see

The basic thing is that people can argue amongst themselves while bullets and bombs are flying, or they can take action to promote security and prosperity. Operations of government begin and end. They are not to be relied on as if they are God- and neither is gold or silver or any currency or investment or legal structure.

I’ve written extensively on the psychology of what is shifting as well as the history and economics. Rather than allowing change to inform their own actions and benefit dramatically from the most obvious and sudden redistribution of economic resources that I personally know of, and perhaps in the recorded history of mankind, how many of us are instead complaining about things like that the FDA is “full of sh!t” STILL. Seriously, when was that not the case? (Their information and agenda is limited…. So what?)

Those who are arrogant shall be humbled. Those who are asleep shall be wakened. Those who are antagonistic shall be mired in conflict. Those who are judgmental shall be agonizing in the hell of shame and guilt.

Deutsch: Polizeiwagen der Federal Reserve Poli...

Deutsch: Polizeiwagen der Federal Reserve Polizeil (Bundesbankpolizei) English: Federal reserve police car, St. Louis, MO (Photo credit: Wikipedia)

Pieces of this message are not new to any of us, right? However, when the last piece of the puzzle is put into place, even those of us who have not been looking at the picture on the box in which the puzzle came… will know what the puzzle shows when assembled. By the way, if the governments or mass media or churches give us a boxtop that does not match the actual puzzle that is in the box, that does not mean that we should wait for them to give us the correct blueprint or build the puzzle for us.

Put it all together. Do the math.

Many people will experience dramatic increases in various forms of suffering. We are not at fault for their suffering- nor then for own our past suffering. However, we have the opportunity now to learn as well as to teach.

The meek shall inherit the earth and receive abundance overflowing, but the price of giving up vanity and self-righteousness may seem too high for some, so life may “turn the tables” and raise the relative cost of keeping vanity. Thank heavens for that.

(see also:

Published on: Oct 27, 2009

Description: Newspaper clipping USA, Woodrow W...

Description: Newspaper clipping USA, Woodrow Wilson signs creation of the Federal Reserve. Source: Date: 24 December 1913 (Photo credit: Wikipedia)

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first harmony then prosperity

August 9, 2011
Harmony internally, then prosperity externally

Yes, “there is more to life than money.” Also important, “a fool and his money are soon parted.”

So be aware of the possibility of being foolish about wealth. Be aware of the possibility of being foolish about all of life or any of it. Then be aware of the possibility of being calm and clear and courageous about life, including the aspect of life regarding wealth.
Lately, many people are talking about financial risk and results that they have called surprising. Many of them have been investing their trust in mass media or massive bureaucracies like the insurance company AIG or the Federal Reserve or the government of the USSR– you thought I was going to say US, didn’t you?
What have been the consequences of investing trust in the mass media and massive bureaucracies? Have those results (perhaps such as being unpleasantly surprised) raised the question as to whether those methods might have been foolish? Is it possible that foolish methods of investing trust may produce the result of financial losses, rather like the saying goes that “a fool and his money are soon parted?”
What about discounting the importance of financial realities? Are finances suddenly important to you or were they always important and only recently recognized as important? How about this: are gasoline or electricity suddenly important to you or were they always important and only recently recognized as important because we could take them for granted until prices reached a point that we altered our perspective and our behavior based on things like rising gasoline prices.
For many years, I have been focusing on the possibility of rising fuel prices and their consequences on the economies of Japan, the USSR, Europe, and the US. My publication in 2004 of “the Real US Deficit: OIL” featured a section called “the DominOIL effect” relating to why I expected fuel prices to continue their dramatic rise that began in 1999 and what consequences I expected in the US, which I expected to be similar to what had been happening in Japan since 1989 and the UK and EU since 1999.
The next chart shows the all-time low of inflation-adjusted prices of gasoline in the US in 1999. Global oil prices also made a major low in 1999.
The last chart is a chart of the stock market of the UK. Next, here is what gas prices in the US were near the time of that article in 2004:
My central question (in this 2004 publication: was “how many dollars will it cost to buy a gallon of gasoline next year?” Here is an 8-year chart of what happened:
(from here:
Some people have questioned my logic because of oil and gasoline prices falling sharply in 2008.  However, for those that have the courage to read my old articles, I did not say that demand for fuel would never drop or that prices would never drop.
On the contrary, I simply said that diminishing supplies (since the easily predictable peaking of global oil production in 2006) would raise prices enough to slow down the global economy, including that of the US. That predictable slowing of economic activity would predictably reduce demand for fuel, which would predictably drop prices. The drop in 2008 does not disprove the accuracy of the logic, but establish it. I may have even published all of that content, but it is pretty easy to see the logic one’s self if one is willing and able to face the simple facts.
How can the global economy expand after the 2006 peak in oil production? It must contract. Economic activity drops as fuel supply drops. Things like currency inflation or credit deflation are secondary financial measures relative to a primary tangible economic issue like an empty fuel tank in your car. Having lots of cash or credit but being out of gas in the middle of a desolate highway do not make a fool into a genius. Primary functional economic tangibles like gasoline and food are the things that we value having currency to access. No one cares much about currency (or gold) when they are starving, right?
So, it was the spiking of fuel prices by 2007 that were accompanied by the steep decline of global stock prices in 2008. After stocks began to plummet, fuel prices did too eventually- all as I predicted. Further, real estate borrowing had predictably diminished considerably as well, so real estate prices predictably declined dramatically, which resulted in financial trouble for many financial institutions, such as FNMA, AIG, and WaMu, as I specifically predicted in a video that has been online since 2006. (I can send a link to those interested.)
Once fuel prices fell, the global stock market began to recover. However, gasoline prices in the US recently approached their 2008 highs again (in red below).

In 2007, stocks peaked while gasoline (and silver) rose. Then silver peaked next in early 2008), then gasoline. Doesn’t that imply that rising fuel prices may have been the cause of the decline in prices of stocks (in the US and globally) and even of silver? Or maybe it was the high silver prices that brought down everything, right? 😉
When gasoline prices in the US reached a high enough level in April to reverse the spending behavior of the US economy, dropping demand enough to reduce purchases and bring down gasoline prices. However, that reduction in a fundamental behavior within the US economy also brought down the prices of the US stock market (blue above) and even of silver (green above).
In fact, those three things peaked on the exact same day: April 29th, 2011 (close-up shown below). But no one could have predicted that rising gasoline prices would have in any way effected the US economy or spending habits or stock prices or even silver prices, right? Rising fuel prices could not really have any effect on popping bubbles of speculative mania, would they?

Then again, maybe the cause was President Bush or President Obama, not gasoline prices. Or maybe they are personally responsible for gasoline prices- like maybe whether the prices of gasoline rise or fall is totally dependent on the choices of exactly one person.
But why did the Japanese economy slow down in 1989? Why did European economies begin to slow in 1999? Did $11 gallons of diesel in the UK in 2008 have any effect on the spending behaviors and economic activities of business and consumers within the UK?
Possible? Yes.
Predictable? Yes!
So, what is coming next? More selling of stocks and real estate. I’ve been warning of that since before 2004. I knew that the speculative bubbles would not last forever and were nearing their extremes. Real estate began peaking in 2005 (in places like Phoenix) and soon extended to most of the US (and much of Europe etc).  Stocks began peaking in the US in 2007 (at least for most sectors, excluding high tech, which peaked several years prior).
Of course there were a few exceptions, like the US stock sector HUI (shown above). However, the mining stocks of HUI are part of the same economy, too. They actually peaked in early April this year (pink):
What has done well? Here are a few examples of gains approaching 100% gains in the last 10 days:
What else did well lately? I sold a put option for $1.07 today that closed Friday at $.17. That change (up over 400%) is a pretty decent increase for a single day, right?
But remember, the mass media and massive bureaucracies may indicate that there is no such thing as predictability, or at least not in certain instances. Even notice that as you are reading this sentence, there is absolutely no way to predict that this sentence is going to end with a punctuation mark, is there?
No one could have predicted any of this. The future is completely unrelated to the past- not just your personal future, but even the future of how this sentence is going to end.
Nature does not have any patterns in it. And that, as always, is entirely the fault of the US President. Or the Federal Reserve. Or OPEC. Or this sentence.
So how are we going to fix the problem of nature not having any predictable patterns in it? First, let’s blame someone else because that has always worked marvelously in the past, right? Then let’s wait for the person that we blame to save us from them. Finally, let’s complain about how waiting for them to save us from them is still not working again as usual as always.
Just do not adjust. After all, adjusting could effect your actual results, and no one is interested in financial security or economic prosperity because that would be evil and shameful and of no functional relevance whatsoever. So, is any of this fooling you?
Keep in mind that sometimes translations can shift the implication of a message. If someone were to suggest that proudly foolish naivete about financial speculative bubbles was a major risk, deserving great caution, do you think that message might be translated like this: “proud attachment to ideals about wealth is dangerous” or even “the love of money is the root of all evil?”
It’s not ignorance that is most risky. It is believing that something is so when in fact it is not.
From an emotional or irrational attachment to false presumptions, blame and anger and grief and agonizing and proud argumentativeness and shame all may arise predictably. Learn that, either the easy way or the hard way, but learn it fast.
By the way, yesterday at the close of trading (Monday 8/8/2011), I purchased some call options on the US Stock market. Those positions rise in value when stock prices rise. After one of the biggest down days in US stocks in decades, I understood that the panic of the masses after the weekend downgrade of US debt could be a short-term buy signal for US stocks.
So, after stock futures dropped another 2% in overnight trading, they then reversed 4% and are again pushing toward an open of more than 2% up. That should produce overnight gains of well over 100% for those instruments.
I sold those call options for a gain of only 40% overnight. But that was just the start of the day. It got better…..

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