The Liberty Beacon

The Liberty Beacon



Fly in Venus flytrap

By: Brandon Smith

As I write this, the news is saturated with stories of a hostage situation possibly involving Islamic militants in Sydney, Australia. Like many, I am concerned about the shockwave such an event will create through our sociopolitical structures. However, while most of the world will be distracted by the outcome of this crisis (for good or bad) for at least the week, I find I must concern myself with a far more important and dangerous situation.

Up to 40 people may be held by a supposed extremist in Sydney, but the entire world is currently being held hostage economically by international banks. This is the crisis no one in the mainstream is talking about, so alternative analysts must.

As I predicted last month in “We Have Just Witnessed The Last Gasp Of The Global Economy,” severe volatility is now returning to global markets after the pre-game 10 percent drop in equities in October hinted at what was to come.

We expected such destabilization after the wrap-up of the Fed taper, and the markets have not disappointed so far. My position has always been that the taper of QE3 made very little sense in terms of maintaining the manipulated illusion of economic health — unless, of course, the Federal Reserve was implementing the taper in preparation for a renewed financial catastrophe. That is to say, the central bankers have established the lie of American fiscal recovery and then separated themselves from blame for the implosion they KNOW is coming. If the markets were to collapse while stimulus is officially active, the tragedy would be forever a millstone on the necks of the banksters. And we can’t have that now, can we?

This is not to say that individual central banks and even currencies are not expendable in the grand scheme of things. In fact, the long-term goal of globalists has been to consolidate all currency systems and central banks under the outward control of the International Monetary Fund and the Bank Of International Settlements, as I outlined in “The Economic Endgame Explained.”

That particular article was only a summary of a dangerous trend I have been concerned about for years; namely the strategy by international financiers to create a dollar-collapse scenario that will be blamed on prepositioned scapegoats. I have no idea what form these scapegoats will take – there are simply too many possible triggers for fiscal calamity. What I do know, though, is the goal of the endgame: to remove the dollar’s world reserve status and to pressure the American people into conforming or even begging for centralized administration of our economy by the IMF.

The delusion perpetuated in the mainstream is that the IMF is a U.S.-dominated institution. I have outlined on many occasions why this is false. The IMF like all central banks is dominated by the international corporate banking cartel. Central banks are merely front organizations for globalists, and I am often reminded of the following quote from elitist insider Carroll Quigley when I hear people suggest that central banks are somehow independent from one another or that the Federal Reserve is itself the singular “source” of the world’s economic ills:

It must not be felt that these heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down.

The substantive financial powers of the world were in the hands of these investment bankers (also called “international” or “merchant” bankers) who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful and more secret than that of their agents in the central banks.

No one can now argue against this reality after we have witnessed hard evidence of Goldman Sachs dictating Federal Reserve policy, as outlined here.

And, most recently, we now know that international bankers control political legislation as well, as Congress passed with little resistance a bill that negates the Frank-Dodd restrictions on derivatives and places the U.S. taxpayers and account holders on the hook for more than $303 trillion in toxic debt instruments. The bill is, for all intents and purposes, a “bail-in” measure in disguise. And it was pushed through with the direct influence of JPMorgan Chase CEO Jamie Dimon.

The Federal Reserve, the U.S. government and the dollar are as expendable to the elites as any other economic or political appendage. And it can be replaced at will with yet another illusory structure if this furthers their goal of total centralization. This has been done for centuries, and I fail to see why anyone would assume that globalists would change their tactics now to preserve the dollar system. They call it the “New World Order,” but it is really the same old-world monetary order out of chaos that has always been exploited. Enter the IMF’s old/new world vision.

While the investment universe has been mesmerized by the deterioration of the Russian Ruble and oil prices, the IMF has been a busy little bee hive…

In articles over the past year, I have warned that the plan to dethrone the dollar and replace it with the special drawing rights basket currency system would be accelerated after it became clear that the U.S. Congress would refuse to pass the IMF reforms of 2010 proclaiming “inclusiveness” for developing economies, including the BRICS nations. The latest spending bill removed any mention of IMF reforms. The IMF, under Christine Lagarde, has insisted that if the U.S. did not approve its part of the reforms, the IMF would be forced to pursue a “Plan B” scenario. The details on this “plan B” have not been forthcoming, until now.

The Financial Times reported on the IMF shift away from the U.S. by asserting the authority to remove the veto power America has always enjoyed over the institution. This action is a stark reminder to mainstream talking heads and to those who believe the U.S. is the core economic danger to the world that the IMF is NOT an extension of American policy. If anything, the IMF and the U.S. are extensions of international banking power, just as the BRICS are nothing more than puppets for the same self-serving financial oligarchy clamoring for the same IMF-controlled paradigm, as Vladimir Putin openly admitted:

“In the BRICS case we see a whole set of coinciding strategic interests. First of all, this is the common intention to reform the international monetary and financial system. In the present form it is unjust to the BRICS countries and to new economies in general. We should take a more active part in the IMF and the World Bank’s decision-making system. The international monetary system itself depends a lot on the US dollar, or, to be precise, on the monetary and financial policy of the US authorities. The BRICS countries want to change this…”

And of course the Chinese have pronounced their fealty to the IMF global currency concept:

The world economic crisis shows the “inherent vulnerabilities and systemic risks in the existing international monetary system,” Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up of a basket of global currencies and controlled by the International Monetary Fund and said it would help “to achieve the objective of safeguarding global economic and financial stability.”

The BRICS are not the only nations demanding the U.S. lose its supposed “influence” over the IMF.  Germany, the core economic pillar of the EU, called for America to relinquish its veto power back in 2010 just as the reforms measure was announced.

The IMF decision to possibly eliminate U.S. veto power and, thus, influence over IMF decisions may come as early as the first quarter of next year. This is the great “economic reset” that Largarde has been promoting ad nauseam in multiple interviews and speeches over the past six months. All of these measures are culminating in what I believe will be a more official announcement of a dump of the U.S. dollar as world reserve currency.

Along with the imminent loss of veto power, I have also written on the concerns of the coming SDR conference in 2015. This conference is held only once every five years. My suspicion has been that the IMF plans to announce the inclusion of the Chinese yuan in the SDR basket and that this will coincide with a steady dollar dump around the globe. Multiple major economies have already dropped the dollar in bilateral trade with China, and engineered tensions between the U.S. and the East have exacerbated the issue.

The timing of the SDR conference has now been announced, and the meeting looks to be set for October of 2015. Interestingly, this linked article from Bloomberg notes that China has a “real shot” at SDR inclusion and official “reserve status” next year, but warns that the U.S. “may use its veto power” to stop China’s membership. I have to laugh at the absurdity of it all, because there are many people in the world of economic study who still believe the developments of globalization and fiscal distress are all “random.” I suppose that if it is all random, then it is a rather convenient coincidence that the U.S. just happens to be on the verge of losing veto power in the IMF just before they are about to bring the BRICS into the SDR fold and supplant the dollar.

This is it, folks; this is the endgame right in front of our faces. The year of 2014 is the new 2007, with all the negative potential but 100 times more explosive going into 2015. Our nation has wallowed in slowly degrading financial conditions for years, hidden by fake economic statistics and manipulated stock prices. All of it has been a prelude to a much more frenetic and shocking event. I believe that we will see continued market chaos from now on, with a steep declining trend intermixed with brief but inadequate “dead cat” stock bounces. I expect a hailstorm of geopolitical crises over the next year to provide cover for the shift away from the dollar.

Ultimately, the death of the dollar will be hailed in the mainstream as a “good and necessary thing.” They will call it “karma.” They will call it “progress.” They will even call it “decentralization” and a success for the free market. But it will not feel like a positive development for the American public, who will suffer greatly as the dollar crumbles. Only those educated in the underpinnings of shadow banking will understand the whole thing is a charade designed to hide the complete centralization of sovereign economic governance into the hands of the globalists, using the IMF and BIS as “fiscal heroes,” saving the world from a state of economic destruction the elites themselves secretly created.


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Paul Craig Roberts, December 15, 2014

The gangsters who run the US financial system have determined opponents. Among them are Elizabeth Warren, Nomi Prins, Pam and Russ Martens, Michael Hudson, and David Stockman.

I have often expressed my admiration for Warren, Prins, Martens, and Hudson. In his latest column, David Stockman has earned my admiration and forgiveness.

I say forgiveness because in my opinion Stockman came close to sabotaging President Reagan’s economic program.

None of us on whom the president was relying expected that Stockman would be the weak link. Stockman, a member of the House, was an advocate of the new policy and a friend of U.S. Rep. Jack Kemp. I knew Stockman and had worked with him in putting together a new approach to economic policy in the short time between the November election and January inauguration.

The success of the new policy depended upon Stockman, who we managed to have appointed Director of the Office of Management and Budget, on Federal Reserve Chairman Paul Volcker, and on my office in the U.S. Treasury where I was appointed Assistant Secretary for domestic Economic Policy.

The problem we confronted was the worsening “Phillips curve” tradeoffs between inflation and unemployment that had produced a situation termed “stagflation.” The Phillips curve illustrated that an increase in employment had to be “paid for” by accepting higher inflation, and a reduction in inflation had to be “paid for” in terms of higher unemployment. The trade-offs between inflation and unemployment were worsening. The dilemma came to a head when Milton Friedman showed that the Phillips curve trade-offs had broken down and that higher inflation now brought higher unemployment.

The new situation was described as “stagflation.” The Keynesian macroeconomists and policymakers could not explain the cause of stagflation and had no remedy.

Supply-side economists had both explanation and remedy.

The battles between Keynesians and supply-siders had been fought in the Congress over the previous five years. Republicans in the House and Democrats in the Senate had been won over to the new policy. In the annual budget resolutions, the Republican minority in the House offered a supply-side approach to the traditional Keynesian approach. In the Senate the Democrat majority endorsed the supply-side policy in the annual reports of the Joint Economic Committee, the chairman of which was Lloyd Bentsen. Finance Committee Chairman Russell Long was on board with the new policy, and Sam Nunn actually got the policy passed only to see it killed by the Carter administration.

I have explained many times the difference between a Keynesian and supply-side approach. Essentially, it comes down to this: In Keynesian macroeconomics, monetary and fiscal policy operate only on aggregate demand (the total demand for goods and services), not on aggregate supply. Monetary and fiscal policies cause aggregate demand to increase or decrease. For example, an income tax rate reduction (fiscal policy) raises consumers’ after-tax incomes and results in higher consumer demand.

In contrast, supply-side economics emphasizes that a reduction in marginal tax rates alters the relative prices that determine the price of leisure in terms of foregone current income and the price of current consumption in terms of foregone future income from saving and investing.

In other words, a reduction in marginal tax rates makes leisure and current consumption more expensive in terms of foregone income and results in an increase in labor supply and an increase in saving and investment. Thus, the policy increases aggregate supply.

Not realizing that fiscal policy affected aggregate supply, the Keynesian policymakers increased aggregate demand with easy monetary policy but restricted the response of supply to the higher demand with high tax rates. The result was stagflation.

The solution was to reverse the policy mix: a tighter monetary policy (less new money creation and a reduction in demand pressure on output) and lower marginal tax rates (a rise in supply or output). The result would be a repudiation of the Phillips curve. The real economy would grow while inflation fell.

New policies are always at a disadvantage. For example, a new economic policy depreciates the human capital of economists and financial journalists associated with the former policy. Leadership passes from an established order to a new one. Journalists have to retool. It amounts to a lot of work and inconvenience.

As Niccolo Machiavelli declared: “There is nothing more difficult, more perilous or more uncertain of success than to take the lead in introducing a new order of things.”

Reagan’s new policy had yet another disadvantage. It was being introduced at a time when inflation was high and people were on the point of panic. Few people understood the new policy, and as tax cuts had been explained for 40 years as an expansionary policy that increased aggregate demand, it made no sense in terms of traditional thinking to add demand stimulus to an economy suffering from high inflation. Predictions began appearing that Reagan’s policy would cause inflation to explode.

Certainly Paul Volcker thought so. The Treasury met with Volcker weekly hoping to bring him on board with the new policy, but Volcker simply could not get his mind around the new policy. He had never heard of such. Tax cuts had always been in the category of expansionary policy. They would mean fiscal deficits, and fiscal deficits were described in every economics textbook as a method of increasing consumer demand to fight unemployment. They were the antithesis of an anti-inflationary policy.

Volcker’s outside advisors had the same opinion. Alan Greenspan told Volcker in my presence that Reagan’s fiscal policy would overwhelm even the tightest monetary policy. Using language that feminists no longer permit, Greenspan told Volcker that in view of such an expansionary fiscal policy “monetary policy is a weak sister and at best can conduct a weak rearguard action.” Inflation would break loose and ravage the economy.

The Treasury asked Volcker to gradually reduce the growth rate of money as the marginal tax rate reductions fed into the economy. If this policy could be coordinated, there was a chance to bring down inflation without sending the economy into recession.

However, the advice Volcker received from his advisors reinforced his own view that the Reagan administration’s policy would send inflation higher and that he would be blamed. To protect himself and his institution, Volcker turned off the money before the tax rate reductions, which in a compromise with deficit-conscious Republicans were reduced, delayed and phased in over three years, went into effect. Thus, the economy received monetary restraint and no offsetting supply-side stimulus.

By collapsing the economy, Volcker exploded the budget deficit. The financial press and Reagan’s enemies blamed the deficit on tax reductions that had not yet gone into effect.

The Volcker Deficits put tremendous pressure on Stockman. Conservative Republicans and most of the financial community feared the consequences of deficits. Republicans feared for the Republic and Wall Street feared for their stock and bond portfolios. Deficits meant inflation. Republicans thought inflation would destroy the political order, and Wall Street knew that inflation would drop bond and stock prices.

The supply-side policy was also disadvantaged because it had to be introduced before the Treasury’s traditional static revenue estimating model could be updated to one that included the revenue increases from higher GDP growth. The Treasury model assumed that every dollar in tax cuts lost a dollar of tax revenue. Even Keynesian economists disagreed with this. Walter Heller, who was Chairman of President John F. Kennedy’s Council of Economic Advisers, said that the Kennedy tax cuts paid for themselves in higher tax revenues resulting from more employment, higher GDP growth, and reductions in unemployment and welfare benefits as a result of lower unemployment. Every economist agreed that some percentage of the lost revenues were regained because of the economic expansion.

Nevertheless, the Treasury’s model had never been updated to reflect this consensus. Stockman’s budget forecast was faced with large deficit projections reflecting the Treasury’s static revenue estimates.

In left-wing mythology, the Reagan administration forecast that the tax cuts would pay for themselves, but as every official document shows, the Reagan administration forecast that every dollar of tax cut would lose a dollar of revenue. After experiencing the Clinton, George W. Bush and Obama regimes, the ease with which propaganda substitutes lies for facts should by now be well known.

Reagan’s economic policy was also disadvantaged by being caught up in a fight over political succession. Reagan as a result of his popular support was able to take the presidential nomination away from George H.W. Bush, the Republican Establishment’s choice. The Establishment was faced with a loss of control. Outsiders would come into prominent positions, gain influence and become rivals to established insiders. Additionally, the new economic policy arose from outside the establishment. It was identified with Rep. Jack F. Kemp, a former pro-football quarterback and proven leader. The Republican establishment reckoned that eight years of Reagan followed by eight years of Kemp would leave them permanently out of power. It would be their end.

Obstacles to the new policy came from the Bush people inside the administration. They had a fine line to walk. If they caused the policy to fail or to be stillborn, Republican discredit would take them down also. Their plan was to present the policy as largely correct but too extreme. The story that they fed the media was that the Establishment would reform the extreme policy and turn it into something workable. This would allow the establishment to claim credit for Reagan’s success and keep what they saw as the Jack Kemp threat at bay.

This made it difficult for me to get Reagan’s policy out of his administration in anything close to its original form.

As if these disadvantages were not enough, White House chief-of-staff Jim Baker decided that he would make the tax cut into a Republican victory over Democrats. Therefore, Baker picked a fight with House Speaker Tip O’Neill, who, far from opposing the policy, had an alternative supply-side tax cut bill, and Baker cut the Senate Democrats, who had given the new policy much of its credibility, out of the administration’s bill.

I argued that a new policy needs consensus and that a compromise with O’Neill and inclusion of the Senate Democrats was the way to obtain it. Otherwise, I argued, the Democrats will have no stake in the new policy, and a wound would be opened that would fester.

It was at this point, I believe, that Don Regan realized that he needed to be White House chief-of-staff, not Secretary of the Treasury, if the president’s policy were to be safe. At the beginning of Reagan’s second term, Regan engineered the switch, but by then it was too late. The Democrats who had endorsed the policy in the late 1970s no longer had any stake in its success.

Stockman knew how to use the media, but, like Volcker, he was not going to risk his career and reputation on the uncertain success of establishing a new order of things. When the going got tough, Stockman began meeting secretly with journalist William Greider to establish his escape route.

Sensitive to the deficits projected by the Treasury’s static revenue estimates, Stockman had hidden the deficits by assuming a much higher forecast of inflation than we knew Volcker would deliver. I kept warning that Volcker was going to slam on the monetary brakes, but the monetarists in the administration saw the Fed as an inflation machine and did not believe it. I advised Stockman that if Volcker turned off the money, as I was sure he would, the resulting recession would produce deficits that would be blamed on the supply-side policy even though the policy was yet to be implemented. Baker had made enemies of the Democrats. Most of Wall Street and the financial press were against us, and so were the Keynesian economists. Already we were being accused of making a “Laffer curve” forecast that tax cuts would pay for themselves. It would have been much better to forecast deficits, emphasize their exaggeration by static revenue forecasts, cut a deal with the Democrats and stare down the Senate Republicans on the deficit.

But Stockman would not forecast deficits. When Volcker struck, Stockman realized his mistake, and he began planting a story line on Greider that covered Stockman’s butt. When Don Regan fired Stockman at the beginning of Reagan’s second term, Stockman wrote a book that blamed the deficit on politics that combined tax cuts with increased spending. Greider’s article based on his secret sessions with Stockman and Stockman’s book played into the hands of the new policy’s enemies.

Stockman went on to a million dollar salary on Wall Street. Those of us who had stood firm had to take the heat. The fact that inflation collapsed despite tax cuts and budget deficits, just as supply-side economists said it would, and did not rise as Wall Street and Keynesian economists predicted, was completely ignored. The Reagan economic expansion proceeded as inflation fell year by year. The Phillips curve was gone, vanished. It was a complete vindication of supply-side economics; yet the story presented by economists and media was one of failure.

Having experienced this, I was not surprised by the lies and coverups that have locked our country into years of budget-busting and reputation-destroying wars leading to unwinnable conflict with Russia and China. The United States has devolved to the point where truth has becomed an enemy of the state and of the forces that control the state. Those who lie for the state and the interest groups that control the state are rewarded. Those who tell the truth are punished.

What I have have written above is more than a history. It shows that change in behalf of the public interest is extremely difficult to achieve even when there is leadership and people in positions of power who are willing to accumulate enemies in order to bring needed change. All sorts of things overwhelm change: stupidity, egos, vested interests, lies and propaganda. The list is long.

I have concluded that corruption is so dominant in the US today that change for the better cannot come from internal sources. Change for the better, if it comes, will come from economic collapse resulting from the prostitution of public policy to serve a handful of elites.

My forecast is not altogether bleak. Evil often destroys itself when there is no one else to do it. In the meantime, we can enjoy Stockman’s assault on the financial gangsters who are destroying the lives of all of the rest of us and appreciate that Stockman’s courage has caught up with his intellect. United, the two produce a powerful voice.

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Visit his web site at the Institute for Political Economy.

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TLB recommends you read more great/pertinent articles from Paul Craig Roberts.


By Michael Snyder, on December 14th, 2014

Is this the start of the next major financial crisis? The nightmarish collapse of the price of oil is creating panic in financial markets all over the planet. On June 16th, U.S. oil was trading at a price of $107.52. Since then, it has fallen by almost 50 dollars in less than 6 months. This has only happened one other time in our history. In the summer of 2008, the price of oil utterly collapsed and we all remember what happened after that. Well, the same patterns that we witnessed back in 2008 are happening again. As the price of oil crashed in 2008, so did prices for a whole host of other commodities. That is happening again. Once commodities started crashing, the market for junk bonds started to implode. That is also happening again. Finally, toward the end of 2008, we witnessed a horrifying stock market crash. Could we be on the verge of another major one? Last week was the worst week for the Dow in more than three years, and stock markets all over the world are crashing right now. Bad financial news continues to roll in from the four corners of the globe on an almost hourly basis. Have we finally reached the “tipping point” that so many have been warning about?

What we witnessed last week is being described as “a bloodbath” that was truly global in scope. The following is how Zero Hedge summarized the carnage…
•WTI’s 2nd worst week in over 3 years (down 10 of last 11 weeks)
•Dow’s worst worst week in 3 years
•Financials worst week in 2 months
•Materials worst week since Sept 2011
•VIX’s Biggest week since Sept 2011
•Gold’s best week in 6 months
•Silver’s last 2 weeks are best in 6 months
•HY Credit’s worst 2 weeks since May 2012
•IG Credit’s worst week in 2 months
•10Y Yield’s best week since June 2012
•US Oil Rig Count worst week in 2 years
•The USDollar’s worst week since July 2013
•USDJPY’s worst week since June 2013
•Portugal Bonds worst week since July 2011
•Greek stocks worst week since 1987

The stock market meltdown in Greece is particularly noteworthy. After peaking in March, the Greek stock market is down 40 percent since then. That includes a 20 percent implosion in just the past three trading days.

And it isn’t just Greece. Financial markets all over Europe are in turmoil right now. In addition to crashing oil prices, there is also renewed concern about the fundamental stability of the eurozone. Many believe that it is inevitable that it is headed for a break up. As a result of all of this fear, European stocks also had their worst week in over three years…

European stock markets closed sharply lower on Friday, posting their biggest weekly loss since August 2011, as commodity prices continued to fall and and shares in oil-related firms came under renewed pressure from the weak price for crude.

The pan-European FTSEurofirst 300 unofficially ended 2.6 percent lower, down 5.9 percent on the week as the energy sector once again weighed heavily on wider benchmarks, falling over 3 percent.

But despite all of the carnage that we witnessed in the U.S. and in Europe last week, things are actually far worse for financial markets in the Middle East.

Just check out what happened on the other side of the planet on Sunday…

Stock markets in the Persian Gulf got drilled Sunday as worries about further price declines grew. The Dubai stock index fell 7.6% Sunday, the equivalent of a 1,313-point plunge in the Dow Jones industrial average. The Saudi Arabian market fell 3.3%.

Overall, Dubai stocks are down a whopping 23 percent over the last two weeks, and full-blown stock market crashes are happening in Qatar and Kuwait too.

Like I said, this is turning out to be a truly global financial panic.

Another region to keep an eye on is South America. Argentina is a financial basket case, the Brazilian stock market is tanking big time, and the implied probability of default on Venezuelan debt is now up to 93 percent…

Swaps traders are almost certain that Venezuela will default as the rout in oil prices pressures government finances and sends bond prices to a 16-year low.

Benchmark notes due 2027 dropped to 43.75 cents on the dollar as of 11:35 a.m. in New York, the lowest since September 1998, as crude extended a bear market decline. The upfront cost of contracts to insure Venezuelan debt against non-payment for five years is at 59 percent, bringing the implied probability of default to 93 percent, the highest in the world.

So what does all of this mean for the future?

Are we experiencing a repeat of 2008?

Could what is ahead be even worse than that?

Or could this just be a temporary setback?

Recently, Howard Hill shared a few things that he looks for to determine whether a major financial crisis is upon us or not…

The first condition is a serious market sector correction.

According to some participants in the market for energy company bonds and loans, such a correction is already underway and heading toward a meltdown (the second condition). Others are more sanguine, and expect a recovery soon.

That smaller energy companies have issued more junk-rated debt than their relative size in the economy isn’t under debate. Of a total junk bond market estimated around $1.2 trillion, about 18% ($216 billion, according to a Bloomberg estimate) has been issued by energy-related companies. Yet those companies represent a far smaller share of the economy or stock market capitalization among the universe of junk-rated companies.

If the beaten-down prices for junk energy bonds don’t stabilize or recover a bit, we might see the second condition: a spiral of distressed sales of bonds and loans. This could happen if junk bond mutual funds or other large holders sell into an unfriendly market at low prices, and then other holders of those bonds succumb to the pressure of fund redemptions or margin calls and sell at even lower prices.

The third condition, which we can’t determine directly, would be pressure on Credit Default Swap dealers or hedge funds to make deposits as the prices of the CDS move against them. AIG was taken down when collateral demands were made to support existing CDS agreements, and nobody knew it until they were going under. There simply isn’t a way to know whether banks or dealers are struggling until the effect is already metastasizing.

I think that he makes some really good points.

In particular, I think that watching how junk bonds perform over the next few weeks will be extremely telling.

Last week was truly a bloodbath for high yield debt.

But perhaps things will stabilize this week.

Let’s hope so, because this is the closest that we have been to another major financial crisis since 2008.


For more information and links pertaining to this article:

In the summer of 2008, the price of oil utterly collapsed and we all remember what happened after that.

Once commodities started crashing, the market for junk bonds started to implode.

 That is happening again.

What we witnessed last week is being described as “a bloodbath” that was truly global in scope.

 Zero Hedge

 After peaking in March, the Greek stock market is down 40 percent since then.

As a result of all of this fear, European stocks also had their worst week in over three years

Just check out what happened on the other side of the planet on Sunday

Overall, Dubai stocks are down a whopping 23 percent over the last two weeks, and full-blown stock market crashes are happening in Qatar and Kuwait too.

default on Venezuelan debt is now up to 93 percent

 Howard Hill

According to some participants in the market for energy company bonds and loans, such a correction is already underway and heading toward a meltdown (the second condition). Others are more sanguine, and expect a recovery soon.

 how junk bonds perform


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TLB recommends you read more great/pertinent articles from The Economic Collapse. 


Commentary by: Roger Landry (TLB)

In reality modern nations and free societies are but an illusion. There are those among us who consider themselves the Elite of humanity. These would be emperors feel it is their right and destiny to control and rule (not govern) this country and indeed the world. What you will read here is but an introduction for the uninitiated … This saga is centuries in the making, and only now approaches maturity.

There is no longer much doubt that this Oligarchical Elite literally owns our military, our leaders, our country, our money and their main instrument of modern propaganda, the mainstream media. A recent Princeton study clearly states America is no longer governed by Democracy but is ruled by an Oligarchy. The preoccupation, misdirection and constant propaganda provided by the MSM makes their actions and agenda almost impossible to ferret out … almost. This level of control is made possible by the divisiveness they instill in us through a constant barrage of fear, hatred and prejudice from birth.

This Elite controls the ebb and flow of capital across the globe and can control or strongly manipulate Nations through central banking and the International Monetary Fund. This control is almost absolute, especially since they are willing to do whatever it takes (via a total lack of conscience) to maintain that extremely valuable (in terms of power and money) control. Bribery, Extortion, Murder and Perpetual Warfare are their tools and mechanisms of manipulation. We Are not talking about your local bank here, we are talking about the banking powers that tell them when where and how high to jump … and when they can come down, and that they better not dare repeat what really goes on behind the veil of public perception.

Humanity is in imminent danger and our programmed failure to recognize this and push back against it only emboldens their actions! Genocide or the culling of the herd is much easier today with tools like GMOs, vaccinations, engineered disease, chemtrails, pesticides, fluoridated water, global warfare and many other mechanisms at their disposal, and under their complete control.

Indeed this control works so well that via the manipulation of governments, they not only have the power to control humanity but in many cases force us through unjust laws and taxation, to fund the very mechanisms of population control or culling they deem necessary to maintain this power they possess.

Sponsors of our own demise

Click on image to visit “Reality Bites”

Almost every war in the last few centuries has been fought for the profit and strategic goals of this caste. Untold millions have died or suffered extreme poverty to satisfy their lust for profit, control and power. But if we are only seen as cattle to be manipulated for their goals … Do we have any attack of conscience when slaughtering cattle?

When you try to picture this Elite, the Ruling Oligarchy or those who consider themselves to occupy a caste so far above the rest of humanity, that they would refer to the rest of us as cattle, to be thought of and treated as such, there is one family, the true Oligarchy of all tyrants, that stands above all on the list, being responsible for the rise and fall of kings, queens, emperors and nations.

Lets introduce one of the grandest of the Elites … Nathan Rothschild …


In 1791 the Rothschild dynasty also gets control of this nation’s money, through Alexander Hamilton (their agent in George Washington’s cabinet) when they set up the first central bank in the USA called the First Bank of the United States. This is established with a 20 year charter. Although not a permanent entity, it facilitates the infestation of the US government from that point on.

With the Rothschild family net worth estimated far in excess of $100 TRILLION (about twice the total world debt), and controlling interest (Via the intermingled and interbred eight families) in just about every major financial institution on this planet. This cabal is estimated to have a cumulative net worth far exceeding $300 TRILLION, their influence and power go far beyond what most can ever imagine. Nations, presidents, emperors, monarchs and even despots bend before their collective will … or suffer the catastrophic consequences!

What you will find below is an outstanding explanation of this dynasty, its global tyranny, mechanisms of control and its ultimate goals. TLB highly recommends you visit its website of origin for more pertinent information.

Please read on …


When Rothschild Dials 911

By: Dean Henderson

Since America’s inception there has been a lingering notion that European Illuminati bankers seek to bring America to its knees and return it to the fold of the Crown of England, which centuries ago became the key political vassal for the Eight Families who own majority stock in every private central bank in the world- Rothschild, Rockefeller, Kuhn Loeb, Lehman, Goldman Sachs, Warburg, Lazard and Israel Moses Seif .

Many US Presidents warned of the intrigues of the cabal, including George Washington, Thomas Jefferson, John Adams, John Quincy Adams; and later Andrew Jackson, Abraham Lincoln and John F. Kennedy. The latter two were assassinated for trying to nationalize the Federal Reserve via the issuance of Treasury Department-backed (publicly-issued) currency. The Eight Families own 52% of the New York Federal Reserve Bank, far and away the most powerful Fed Bank. Their ownership is disguised under names like JP Morgan Chase, Citigroup, Goldman Sachs and Morgan Stanley.

Do I exaggerate when I claim that there are Eight Families? Well, yes, actually these oligarchs have interbred to the point that they are now, for all practical purposes, one big family, with the Rothschilds being the most powerful. Their net worth alone is estimated at well over $100 trillion.

These people, whose latest justification for lording over us is that they are descended from Jesus Christ himself, are, for obvious reasons, counter-revolutionary. In their collective if obtuse minds, there are no good revolutions. Democracy is antithema. Government is something that only gets in the way. It must be discredited and bought. The American Revolution really pissed these inbreds off. In Canada, Australia and New Zealand, the Crown of England still holds sway via the Governor General. Most European countries retained their monarchies. In America, we had a revolution, democracy and government.

A medieval rollback of the American Revolution begins with the concept that “government is the root of all evil”. This strain of thinking is promoted by the Saudi/Israeli-owned Fox News. These nations are not “Islamic” and “Jewish”. They are fronts for the Crown of England and the Rothschilds. The well-paid corporate lackey leadership of the Republican Party pushes this anti-government agenda, while the idiocracy misnomer known as the Tea Party takes this monarchist argument to its fascist extreme.

Key to this revolutionary rollback is that seminal event- 911- which was used by Windsor family country cousin George Bush Jr. to dismantle our Bill of Rights, bankrupt our nation and destroy our image throughout the world via two oil-grab, narco-stimulant, contractor-friendly wars. In the weeks before 911 the financial weekly Barons reported that Deutsche Bank had purchased huge put options (betting that a stock will go down in price) on American & United Airlines, and WTC reinsurance giants Munich RE, Swiss RE & Axa.

Deutsche Bank, historically owned by the Nazi-funding Warburg family, bought Bankers Trust in 1999 to become the world’s largest bank with $882 billion in assets. Bankers Trust, as its name indicates, had been the Eight Families’ US wealth repository and is the largest shareholder of the Four Horsemen- Exxon Mobil, Chevron Texaco, BP Amoco and Royal Dutch/Shell- who later reaped the Iraq/Afghanistan oil bonanza.

In 2001 Sen. Carl Levin’s (D-MI) Banking Committee fingered Banker’s Trust as a major player in drug money laundering. On August 28th, just two weeks before 911, Deutsche Bank executive Kevin Ingram pled guilty to laundering heroin proceeds and arranging US weapons sales to parties in Pakistan and Afghanistan. A June 15, 2001 New York Post article said Osama bin Laden was the likely buyer. Kevin Ingram is a close friend of Clinton Treasury Secretary and Goldman Sachs insider Robert Rubin, now a board member at Citigroup. Ingram had worked at both Goldman Sachs and Lehman Brothers.

Banker’s Trust purchased the fast-growing Alex Brown investment bank in 1997 before the two merged into Deutsche Bank. Alex Brown took its name from founder A. B. “Buzzy” Krongard who served as chairman until the 1997 Bankers Trust buyout. Krongard is now the #3 man at CIA. On September 15th, four days after 911, the New York Times reported that Deutsche Bank Global Private Banking Chairman Mayo Shattuck III had suddenly resigned.

Mohammed Atta and two of other alleged hijackers had accounts at the Deutsche Bank Hamburg headquarters. There were reports that bin Laden’s family had taken a large stake in Deutsche Bank with help from Carlyle Group financial advisor George Bush Sr. The bin Laden’s had $2 million invested in Carlyle Group. They held big stakes in Microsoft and Boeing, and had extensive business dealings with Citigroup, GE, Merrill Lynch, Goldman Sachs and Fremont Group (recently spun-off by Bechtel). Within twenty days of 911, Deutsche Bank had hired away (effectively silencing) SEC lead investigator Richard Walker, whose main task would have been to delve into the mysterious shorting of airline and insurance stocks prior to 911.

The final phase of counter-revolution can be accomplished through the withdrawal of Eight Families’ funding of America’s $11 trillion debt, which has mostly accrued due to the US military’s role as mercenary praetorian guard of the Illuminati global empire, coupled with a devastating US military defeat in Afghanistan.

On August 15, 1871 Sovereign Grand Commander of the Ancient & Accepted Scottish Rite of Freemasonry General Albert Pike, who later founded the Ku Klux Klan and prosecuted the Indian Wars, wrote a letter to Italian P-1 33rd Degree Grand Commander and Mafia founder Guiseppe Mazzini. In the letter Pike talked of a Brotherhood plan for three World Wars. The first, he said, would destroy czarist Russia and create a Communist “bogeyman” which the bankers could employ to justify their foreign interventions around the world. The second, Pike said, would be used to create Israel, which would become a mercenary force for the international bankers, protecting Middle Eastern oil interests for Rothschild and Rockefeller combines.

The Third World War, stated Pike’s letter, would pit Arabs against Zionists, and would culminate in a New World Order completely controlled by the international bankers and their secret societies. Pike described the events that would unfold as pretext for WWIII, “We’ll provoke a social cataclysm which in all its horror… everywhere the citizens obliged to defend themselves against the world minority of revolutionaries…will receive the true light through the pure doctrine of Lucifer, brought finally out into public view.”

In June 2001, a female Russian doctor stated in a Pravda column that the US would be subject to a massive terrorist attack in late August 2001. She was then asked what she believed was coming next. She suggested selling dollars and buying Russian rubles, saying that the secret group behind 911 was the most powerful force in the world, worth over $300 trillion. She said this group would soon “strike America in the back” while it was down and that the next shoe to drop would be the decimation of the US economy. This “secret group” could only be the Illuminati Rothschild-led Eight Families.

Cecil Rhodes, the Rothschild protégé who founded the Business Roundtable in the early 20th century wrote his last will and testament in 1877. Rhodes’ vision was implemented through the establishment of the Royal Institute for International Affairs in London. Rhodes founded the Standard Chartered Bank, whose UAE Dubai branch supplied the 911 hijackers with the funds needed to carry out the attack.

Rhodes last will and testament said he hoped, “to establish a trust, to and for the establishment and promotion and development of a secret society, the true aim and object whereof shall be the extension of British rule throughout the world…and the ultimate recovery of the United States of America as an integral part of the British Empire.”

Dialing all American Revolutionaries!


Dean Henderson is the author of five books: Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries,Das Kartell der Federal Reserve, Stickin’ it to the Matrix & The Federal Reserve Cartel. You can subscribe free to his weekly Left Hook column


TLB Highly recommends you visit Left Hook by Dean Henderson A Weekly Whack at the Global Oligarchy.

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Published: December 10, 2014

In the previous Bilderberg article, I wrote that financial markets were “a type of global parasite with unprecedented power capable of determining the fate of nations and peoples.” In truth, the “super-entity” known as financial market power functions like a cartel, or an organized criminal network: a Mafia. This installment examines some of the members of the global financial mafia who are present at Bilderberg meetings and thus are given unparalleled access to political leaders behind closed doors.

At Bilderberg meetings, participants frequently include leading officials and advisers to banks like JPMorgan Chase, Goldman Sachs, Barclays, Deutsche Bank, HSBC and AXA, among others. The participation of leaders and advisers to these and other large financial institutions provides world leaders with direct, “private” access to some of the leading voices at the core of global financial markets. The interests and actions of financial markets can thus be articulated to the leaders of powerful political, media, military, intelligence and technocratic institutions. The “invisible hand” may voice where and when it might smack.

Through Bilderberg, leaders in financial markets are given an inside look at, and access to, those who shape and wield foreign and economic policy in the world’s most powerful nations. Their interests become a part of that process, just as geopolitical interests are integrated into the actions of financial markets. While financial markets command no armies, they determine the flow and functions of money upon which all armies are dependent, and to which nations are obedient. Bilderberg brings these institutions and individuals together for an off-the-record, private chat about global affairs and policy.

Martin Feldstein, who serves on the International Council of JPMorgan Chase, attended all but one Bilderberg meeting between 2010 and 2014. Feldstein is one of the most influential American economists over the past several decades, serving as a professor at Harvard, a member of the Group of Thirty, the Trilateral Commission, the International Advisory Board of the National Bank of Kuwait, and the Council on Foreign Relations. He advised President George W. Bush as a member of the Foreign Intelligence Advisory Board between 2007 and 2009, a position in which he was given access to top-secret intelligence information. He had previously served as one of Ronald Reagan’s chief economic advisers, and President Obama appointed him in 2009 to serve on the Economic Recovery Advisory Board, advising on how to manage the “recovery” following the financial crisis.

Feldstein’s views are well known. Relating to Europe’s debt crisis, for which Bilderberg meetings hold a great deal of significance, Feldstein wrote in the Financial Times in July of 2013 that governments that bowed to “popular political pressure” to lessen the brutal austerity measures widely seen as the cause of mass unemployment, poverty and social unrest, were at risk of facing rising interest rates and “a new fiscal crisis.”

In other words, if governments bend to the will of the people, financial markets will seek to bend them back. A “fiscal crisis” only takes place when creditors (financial markets) decide to stop funding the government. In Europe, nations are largely dependent upon banks to provide them with credit to function. Thus, if the heads of financial markets don’t like the policies of nations, they can cut off their funding, creating a major crisis and even collapsing the government. This leverage forces nations to follow policies favored by financial markets, such as austerity and various other “structural reforms.” Meanwhile, the policies combine to impoverish the population, enrich the elite, allow for mass exploitation of resources and labor, and consolidate control of the economy into the hands of relatively few, large global banks and corporations.

Another key Bilderberg member and leading figure in financial markets is Josef Ackermann, whom I have written about previously. Ackermann has been one of Europe’s most powerful bankers over the past decade, as the CEO of Deutsche Bank and a major power player throughout the debt crisis holding key leadership positions in large industry associations such as the Institute for International Finance (IIF).

The current chairman of the Bilderberg Group, Henri de Castries, is chairman and CEO of the French insurance giant, AXA, one of the top companies on the Swiss study’s list of the “super-entity” of banks and insurance giants. De Castries is also a member of the European Financial Services Round Table (EFR), a lobby group made up of the chairmen and CEOs of Europe’s largest financial institutions.

In 2012, the Financial Times referred to Henri de Castries as one of France’s “best known captains of industry,” having served as an unofficial adviser to former French President Nicolas Sarkozy, and been school classmates with the current President Francois Hollande. De Castries is considered “as establishment as you can get in France.”

In the wake of the European debt crisis, Henri de Castries supported the policies of austerity and structural reform, warning in 2012 that the crisis would continue for some time. He suggested that governments needed to learn how to “spend less” and the only way to “win back our competitiveness” was “through business investment and not by public spending,” adding: “What we need is a profound cultural change.”

Marcus Agius, a member of Bilderberg’s steering committee, is the chairman of PA Consulting, having previously served as the chairman of Barclays, the bank listed in the number one spot on the list compiled by the Swiss study. As chair of Barclays between 2007 and 2012, Agius also served as chairman of the British Bankers Association, was a director of the BBC from 2006 to 2013, and served as a Business Ambassador of the Trade and Investment Ministry of the British government. Agius also married the daughter of Edmund de Rothschild, bringing him into the family of one of the most prestigious and influential financial dynasties in the world.

Agius resigned from Barclays in 2012 as a result of the massive global financial fraud revealed by the Libor rate scandal, whereby some of the world’s largest banks – including Barclays – formed a cartel at the British Bankers Association to manipulate the interest rate at which banks lend to each other, influencing prices throughout the global economy. Despite the resulting scandal for Agius and others, which forced resignations in 2012, he stayed on the bank’s payroll as an adviser until March of 2014, a full 20 months following his official resignation.

Douglas J. Flint, who is chairman of HSBC, has attended every Bilderberg meeting since 2011. He is also chairman of the Institute of International Finance (IIF), and is a member of the European Financial Services Round Table (EFR), the Financial Services Forum, the International Monetary Conference (IMC), and serves on advisory boards to the Mayors of Shanghai and Beijing.

W. Edmund Clark, the chair of one of Canada’s largest banks, TD Bank, has attended every Bilderberg meeting since 2010.

Peter Sutherland has been a long-time Bilderberg participant, and serves as the chairman of Goldman Sachs International.

Robert Zoellick, former World Bank president and Bilderberg participant at every meeting between 2010 and 2014, now serves as the chairman of the Board of International Advisers of Goldman Sachs.

Peter R. Orszag, a Vice Chairman at Citigroup, attended Bilderberg meetings between 2010 and 2012.

The Vice Chairman of Goldman Sachs, J. Michael Evans, attended Bilderberg meetings in 2012 and 2013.

This is but a small sampling of some of the names of the leaders of financial institutions represented at Bilderberg meetings over the past few years. Apart from leading individual banks and financial institutions, many of the financiers who attend Bilderberg meetings simultaneously hold leadership positions within other large banking lobby groups, industry associations, and major international conferences.

For example, Bilderberg members and participants frequently hold simultaneous leadership positions at the Institute of International Finance (IIF), the International Monetary Conference (IMC), and the Group of Thirty (G30), all of which have been the focus of previous installments of the Global Power Project, as they have been profoundly influential organizations in their own right. The fact that so many leading figures in those organizations are leaders and participants in Bilderberg meetings lends extra weight to the importance of the meetings.

Roger Altman, a Bilderberg steering committee member and head of a large investment bank, wrote in a May 2013 article in the Financial Times that financial markets in the 21st century were “much more powerful than any government leader,” noting that the spread of austerity across Europe was not driven by Angela Merkel of Germany or other political leaders, but rather, by “private lenders… who declined to finance further borrowing by those countries,” and thus, “markets triggered the Eurozone crisis, not politicians.”

The views and the desires of bankers and financiers are important – and influential – precisely because if these individuals don’t get what they want, they wield the power in numbers on screens that can force the hands of even the most powerful governments and politicians. As such, the favored policies of bankers frequently become the implemented policies of states.

This is the fourth installment in a series that examines the activities and individuals driving the Bilderberg Group. Read the first partsecond part and third part.


More information and links pertaining to this article here:

Feldstein wrote in the Financial Times in July of 2013

Another key Bilderberg member and leading figure in financial markets is Josef Ackermann, whom I have written about previously.

De Castries is considered “as establishment as you can get in France.”

 Henri de Castries

Marcus Agius, a member of Bilderberg’s steering committee

scandal for Agius

leadership positions at the Institute of International Finance (IIF)

International Monetary Conference (IMC)

Group of Thirty (G30)

Roger Altman, a Bilderberg steering committee member and head of a large investment bank, wrote in a May 2013 article in the Financial Times that financial markets in the 21st century were “much more powerful than any government leader,”


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student-loan-debt 1

By TLB Contributor: Dave Hodges

A college education used to be considered the great equalizer in which a young adult from any social class could close the future income gap regardless of the social class of origin. Unfortunately, a college education is becoming a governmental form of oppression. Step on to almost any college campus today and you will witness the beginning of the creation of generational debt slaves.

For those of you who have children who are approaching college age, your eyes will be opened by the words written here. And the words written here are coming from a college insider who is intimately familiar with these corrupt student lending practices. And like many of you, not only am I professionally entrenched in this unholy system,  I am not that many years away from witnessing the enslavement of my soon to be college age child.

The Creation of Debt Slaves

The rate of increase of a college education has increased eight times more than the cost of living. In my generation, college students could pay for their education with part time jobs. A part time job, today, will not purchase the text books.

In order to obtain a college degree today, students must pay about three times as much for their degree as did someone graduating 30 years ago, even when accounting for inflation. And there is not one shred of evidence that the quality of the education today have received a degree three times as good. In fact, the existing data is suggests that our college students are paying far more than their parents did and receiving a less quality education.

According to the College Board, in 1983 a typical private American university managed to provide a bachelor’s degree education to young people just like you for $11,000 a year in tuition and fees, today, it costs almost $30,000 per year.

Thirty years ago, public universities have witnessed an even more dramatic increase. One used to be able to get a full four-year degree for $8,800. Today, one year’s worth of tuition will cost $8,700. In fact, today on an overcrowded college campus, it takes an average of six years to graduate because of the shortage of offered required classes, It can accurately be said that a good rule of thumb is that the bigger the college, the longer it takes to graduate. Further, when one factors in the time for degree completion, a college education at a public university is 6-8 times greater than it was in 1983.  And if you think that these figures don’t sound that bad, please consider that the new tuition numbers do not account for room and board.

The Number One Expense for Young Adults

What is the number one expense for young adults?  Is it irresponsible credit card debt in which Mastercard and Visa send students unsolicited credit cards and then subsequently prays for impulsive use of new found credit? Is the number source of created debt for young people car loans? These two debt creation devices are not close to being number one. Drum roll please, according to the  Federal Reserve Bank of New York, total student loans have basically tripled since 2004 and are now at the $1 trillion dollar level. total student loans are now approaching $1 trillion. They have easily overtaken credit card debts and car loans. According to the Federal Reserve Bank researcher, Lee Donghoon,  the amount of student loan debt has gone up by 70% and the average amount loaned has gone up by about 70%.Donghoon states  that about 17% of those with student loans are more than 90 days’ delinquent, despite the fact that 44% haven’t even yet entered the repayment period. This increase is coming at a time when family income in America has decreased by $3,200 according to

The Biggest Conspiracy In America

The College-Industrial-Complex has our children exactly where they want them. It can be accurately said that they are a captive audience and that is because that unemployment rates for those without a bachelor’s degree are twice as high as for those who have one.

The global elite can bid up education prices, just as they do real estate prices in Manhattan and San Francisco. However, you do not have to live in a pricey area. However, your children do need a college education in order to be competitive.

Another Attack Upon the Middle Class

If your family is middle income, your children are systematically being priced out of a college education. Whether a child of the global elite pays $20,000 or $150,000 for a four year degree is irrelevant to the super-rich. And if a child comes from less than middle class means, they qualify for federal financial aid. For many of these poor kids, they often attend college for next to nothing. Many of these poor young adults also will qualify for work study jobs so they can meet their room and board expenses.

Middle class parents your targeted by this corrupt system as both the poor and the rich can better afford a college education than they can. This fact is right in line with philosophy of the global elite want two social classes in America, the haves and the have nots and the middle class has been targeted for elimination.

The Conspiracy Circle Widens

There is a second group who is benefiting from the fleecing of middle class college students and it is the media. Many of the media are entrenched in the system, because many work in the system. Some teach and some others are “honorary members” of University think tanks whose primary purpose is to justify the continuing exorbitant cost of a college education. As members of these honorary think tanks, they often receive insider stock information as well as get brought in on sweet heart real estate deals, etc.  All these media types have to do is to refuse to cover the biggest rip off in American history.

“At Least I Have An Obama Phone”

Obama phone

There is still another group who is benefiting from this conspiracy and it is the Federal government. Please allow me to share an anecdotal story of a typical federal student loan story that I am personally aware of. The original loan amount for undergraduate student, Stephen L., was $55,684. Recently the last statement he received in March showed a balance $93,789. This student loan accrued an interest payment of $38,105 in interest. This also represented an increase in the interest rate originally charged by 9% and the notice of the rate increase was not announced until last bill arrived to the student’s mailbox. For the student, this represents a monthly payment which now exceeds his monthly income. He filed a written protest and received the following notice. He was told that the rate of interest could increase without notice and it did. He was told that if he did not pay, they would garnish his wages, seize any tax refund and would also take out the amount on the back end through his Social Security. Even being disabled does not allow one to opt out of paying this extortion money. If Stephen were struck by a car crossing the street and he was placed on life support, the government could garnish his disability and medical payout amounts. In other words, if you don’t pay your student loan, the government could literally make you homeless and starve you to death. And if you owe a federal student loan, you better get comfortable sleeping with your clothes on.

Bad Boys, Bad Boys, Whatcha Gonna Do When They Come For You?

In America, Warren Buffet and Goldman Sachs don’t pay taxes. Yet, well armed swat teams, from the Department of Education, now kick in doors and mug student loan defaulters and terrorize their young children.

Kenneth Wright, from Stockton, CA., was grabbed by the neck, and drug out on his front lawn before being handcuffed as his three young children were put in a police car as the officers searched his house. Wright was in his underwear and amazingly, the warrant for his estranged wife, not him, and she was not home at the time of the raid. Acting on behalf of the Department of Education, the swat team damaged the house and have refused to properly repair the damage. Wright was held for 61/2 hours before federal officials released him.

The federal government has an extreme motivation to engage in predatory student lending for college tuition. The government is charging exorbitant interest, on a balance of $1 trillion dollars and for this kind of money, they will break your door down and terrorize you and your family.

Very soon, perhaps, we will be reading that the Department of Education has purchased 2.2 billion rounds of ammunition as well as 2700 armored personnel carriers.

Analysis: The Real Reason Behind This Insanity

harvardThe college student loan practice is an extreme racket! The feds want their cut but there is even more of a compelling reason, the global elite have created this heinous practice for one primary reason.

The global elite benefit from pricing college out of the price range of today’s children because if David Rockefeller’s grandchildren have a college degree, and yours don’t, your children will work for these monsters and become subservient to them.  And if one works for the global elite masters, then one is not likely to pursue ideals like freedom and liberty as our young adult children are being propagandized and threatened to accept the New World Order agenda.

The tenets of the Hitler Youth movement are alive and well and being implemented through our institutions of higher learning.  How this is being done will be the subject of a future article.


About the Author

Dave Hodges is the host of the popular radio talk show, which airs from 9 PM to Midnight (Central). The show can be heard by clicking the following icon in the upper right hand corner of The Common Sense Show.

© 2014. The Common Sense Show. The Logo and Articles are protected by U.S. Copyright Laws, and are not to be downloaded or reproduced in any way without the written permission of Dave Hodges. Copyright 2014. Dave Hodges. All Rights Reserved

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Published: December 6, 2014

By: Michael Krieger

Wall Street has for some time attempted to put taxpayers on the hook for its derivatives trades. I highlighted this a year ago in the post: Citigroup Written Legislation Moves Through the House of Representatives. Here’s an excerpt:

Five years after the Wall Street coup of 2008, it appears the U.S. House of Representatives is as bought and paid for as ever. We heard about the Citigroup crafted legislation currently being pushed through Congress back in May when Mother Jones reported on it. Fortunately, they included the following image in their article:


Screen Shot 2014-12-05 at 3.32.12 PM

Unsurprisingly, the main backer of the bill is notorious Wall Street lackey Jim Himes (D-Conn.), a former Goldman Sachs employee who has discovered lobbyist payoffs can be just as lucrative as a career in financial services. The last time Mr. Himes made an appearance on these pages was in March 2013 in my piece: Congress Moves to DEREGULATE Wall Street.

Fortunately, that bill never made it to a vote on the Senate floor, but now Wall Street is trying to sneak it into a bill needed to keep the government running. You can’t make this stuff up. From the Huffington Post:

WASHINGTON — Wall Street lobbyists are trying to secure taxpayer backing for many derivatives trades as part of budget talks to avert a government shutdown.

According to multiple Democratic sources, banks are pushing hard to include the controversial provision in funding legislation that would keep the government operating after Dec. 11. Top negotiators in the House are taking the derivatives provision seriously, and may include it in the final bill, the sources said.

The bank perks are not a traditional budget item. They would allow financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp. — potentially putting taxpayers on the hook for losses caused by the risky contracts. Big Wall Street banks had typically traded derivatives from these FDIC-backed units, but the 2010 Dodd-Frank financial reform law required them to move many of the transactions to other subsidiaries that are not insured by taxpayers.

Last year, Rep. Jim Himes (D-Conn.) introduced the same provision under debate in the current budget talks. The legislative text was written by a Citigroup lobbyist, according to The New York Times. The bill passed the House by a vote of 292 to 122 in October 2013, 122 Democrats opposed, and 70 in favor. All but three House Republicans supported the bill.

It wasn’t clear whether the derivatives perk will survive negotiations in the House, or if the Senate will include it in its version of the bill. With Democrats voting nearly 2-to-1 against the bill in the House, Senate Majority Leader Harry Reid (D-Nev.) never brought the bill up for a vote in the Senate.

Remember what Wall Street wants, Wall Street gets. Have a great weekend chumps.


More information and links pertaining to this article here:

Citigroup Written Legislation Moves Through the House of Representatives

 Congress Moves to DEREGULATE Wall Street.

 The legislative text was written by a Citigroup lobbyist

The bill passed the House by a vote of 292 to 122 in October 2013

Source: Liberty Blitzkrieg


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By TLB Contributor: Dave Hodges

I despise the Federal Reserve and those who have run our economy into the ground. However, those of you who think that abolishing the Federal Reserve is the key to eliminating the oppression of the American people, are sadly mistaken.  Right now, the only reason you have a job to go to, a roof over your head, and food on the table is because of the Federal Reserve. I have some really bad news, to the people associated with “The end the Fed movement”, our survival depends on the Federal Reserve and the rest of the Western banking establishments to survive in the upcoming months. No, I have not sold out, but I would suggest reading on and think about taking a “graduate” course in prepping because I am not sure the West can survive what is unfolding.

The Birth of the Petrodollar

Before explaining how imperiled our economy is, I have to start at the beginning for people who do not understand the significance of the Petrodollar. The Petrodollar is the baseline of our economy and it is in big trouble.

A novel system for monetary and exchange rates were established in 1944. The Bretton Woods Agreement was developed at the United Nations Monetary and  Financial Conference held in Bretton Woods, New Hampshire, from July 1-22, 1944. This conference established the US dollar as the reserve currency of the world.

The Banksters (e.g. Rockefellers’) reveled in their new found fortune. As a result of the Bretton Woods Conference, all nations desiring to purchase Middle East oil had to first purchase dollars and use these dollars to complete the purchase of oil.

Nearly everyone inside of our country benefited from this system. Americans basically enjoyed a stable currency minus the inflation rates of about 5% per year which served as an informal tax that went into the Federal Reserve banksters’  pockets. Thus, the Petrodollar was born. If the Petrodollar was to ever be successfully undermined, our currency would sink faster than a submarine with screen doors because there is nothing backing up our money. Put on your life jackets because the ship is sinking fast. The BRICS, led by Russia and China, are growing in influence by leaps and bounds and they are months/years away from being able to effect a collapse of the United States economy.

Since 1944, America has become the most hated nation in the world as we have dominated every single economy on the face of the earth, until now!

The Tables Are Being Turned On the West

The haughtiness of the West as they impose sanctions on Russia over Ukraine is almost laughable. The sanctions are a boomerang in disguise and will come back at us to destroy the American economy which will lead to World War III.

Russia and China cement the biggest international energy deal in history.

At the heart of the American economy and the Petrodollar is energy and Russia and China just cemented an agreement where they do not need the dollar. The Russia –China  $400 billion energy deal, signed in May this year will by 2018 have some 38 billion cubic meters of gas flow through the so-called ‘Holy Grail’ pipeline from the largest gas producer, Russia, to the largest energy user, China. This deal  is many things at once: It is, of course a symbolic step in the process of decoupling hydrocarbon trading from the dollar, as it foresees payments in local currencies, rubles and yuan. It sidesteps the  Petrodollar for hydrocarbon trading. Over one-third of the planet just moved away from the dollar when this recent deal was cemented.

This one deal spells the end of dollar dominance on the planet.  Much of the economic exchange between the two countries will be conducted in gold instead of the dollar.

About half of the people of world are represented in this move away Western capitalism.

The BRICS  have set up a  new development and investment bank for all of the BRICS countries. The banks  will be headquartered in Shanghai, China, with the first president of the bank will be from India. The BRICS nations, of course, are a group of emerging economies and draws its name from the five member countries – Brazil, Russia, India, China and South Africa. BRICS is also considering starting a joint infrastructure fund with an initial capital infusion of around $100 billion to begin investing in each other’s transportation, water and sewage systems. This formerly would have been funded by the World Bank with its cronies in corporations like Bechtel Corporation who would be swooping in to dominate countries in places like South America to construct infrastructure with interest rates typically reserved for Mafia loans. The net effect was that these countries (e.g. Bolivian and Chilean water systems) would enslave the governments and the local populations to the World Bank. These days of imperial capitalism are numbered and American corporations are going to take a major hit because of this deal. There is a serious discussion of issuing a combined currency between the BRICS which would be used in international trading.

The scope of this deal has spread to Pakistan, Iran and Turkey.  This is highly significant because if Turkey is lured into this group, NATO will be undermined and a significant military threat to Russia would be eliminated with regard to the coming World War III.

The BRICS See Through the Facade of International Terrorism

Sources close to the BRICS are openly stating that ISIS represents terror, Western style, and the Washington is behind ISIS. Further, they believe that all the present conflicts in Syria and Ukraine are part of a Western conspiracy to prevent consolidation of the BRICS collective economic and military power.

The BRICS further believe that the economic health of the United States  is terminal and America’s economy is nothing but a mere house of cards. BRICS sources like to boldly state that the American economy consists of more than 50% of the war and security industry and related services and industries on the planet and that this is not sustainable. In other words, the “US has a GDP based mostly on destruction“. To the BRICS, the end game for the U.S. is to start a World War with the hope that after various countries  has been reduced to rubble and its citizens massacred, that the American corporations will swoop in and rebuild what’s left over from war. The BRICS like to quote former World Bank President Robert Zoellick, and his  former statements, to this end.

The stated goal of the BRICS is to use their collective economies to replace the dollar as the world’s reserve currency. The dollar is viewed by these nations as an instrument of oppression and the Federal Reserve sits at the head of the table known as imperialistic oppression.

The "military reserve note" is how the BRICS like to refer to the dollar and it is their main target for assassination.

American Sanctions Against Russia Threatening World Peace

While our country remains fixed on the controversy involving the shootings of unarmed black men in Ferguson and New York, the United States and its Western allies have stepped up sanctions against Russia. The Russians are the backbone of the BRICS and crippling their economy is the goal of these American led sanctions. The Obama administration would like to see a portion of the Russian military tied up in a Ukrainian civil war while Russian gas exports, in which over 60% which runs through Ukraine, needs to be disrupted in order to bring Russia to her knees.

Yesterday, RT reported that the U.S. and the EU are trying to remove Russia from SWIFT money exchanges in an attempt to cripple their foreign trade. Russia Today has called this an ultimate act of war and Russia will respond accordingly. This move clearly demonstrates the desperation being felt by the Western banks.

As I stated earlier, I despise their very existence and what they have stood for which is economic enslavement and endless wars of occupation. Remember, all wars are banker wars. However, let me repeat one point; do you want a job to go to, to be able to pay your mortgage and put food on the table? If the BRICS are successful, we would have total anarchy in this country and we are months, not years away from this possibility.

All of these facts are clearly being obfuscated by the main stream media as I would venture to state that 99% of our citizens have never heard of these developments.

War Is the End Game

If the BRICS are successful and the dollar is going to erode to the point of economic collapse, does anyone really think that the Western banking establishment is simply going to let this system go up in smoke? War is the end game if the Federal Reserve, the World Bank, the IMF and the major banks of Europe cannot cripple Russia with the onslaught of sanctions. And finally,some readers are going to write to me and ask when all of this going to happen? It is prudent to act as if it is going to happen tomorrow. You, as an American, need to become as independent as quickly as possible.

I would not make the mistake of looking at the calendar in terms of knowing when the end is coming for the United States. I am instead focused on watching events which foretell the time when the West has no choice but to start a war with the BRICS. As a marker, I would watch the events inside of Turkey and Germany. If either, or both, leave NATO, I would look for hostilities to commence immediately. This possibility and the variables behind the coming war will be the topic of the next part in this series.


About the Author

Dave Hodges is the host of the popular radio talk show, which airs from 9 PM to Midnight (Central). The show can be heard by clicking the following icon in the upper right hand corner of The Common Sense Show.

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By: Michael Snyder

If you could stay home and watch television, play video games and hang out with your friends all day at government expense, would you do it?  Of course most Americans that collect money from the government each month are not abusing the system.  Many truly are incapable of taking care of themselves, and others are just receiving government benefits (such as Social Security) that they feel that they have earned by a lifetime of hard work.  But with each passing year the number of Americans jumping on board “the safety net” continues to grow rapidly, and a lot of these people should be able to take care of themselves.  Today, the American people collectively receive more money from the government than they pay in taxes.  And remember, the federal government uses our money to build roads, inspect our food and fund the military as well.  So what does this say about our economy?  Could it survive without all of these debt-fueled transfer payments?  And what does this say about our society?  At one time, our nation was known for our Protestant work ethic.  What would our forefathers say about us today?  The following are 21 facts that prove that dependence on the government is out of control in America…

1. According to a Congressional Budget Office study that was just released, approximately 60 percent of all U.S. households get more in transfer payments from the government than they pay in taxes.  Here is more about this stunning report from Mark J. Perry’s Carpe Diem blog

Some additional analysis and commentary will be provided here that reveal a yet-to-be discussed major implication of the CBO report – almost the entire burden: a) of all transfer payments made to American households and b) of all non-financed government spending, falls on just one group of Americans – the top one-fifth of US households by income. That’s correct, the CBO study shows that the bottom three income quintiles representing 60% of US households are “net recipients” (they receive more in transfer payments than they pay in federal taxes), the second-highest income quintile pays just slightly more in federal taxes ($14,800) than it receives in government transfer payments ($14,100), while the top 20% of American “net payer” households finance 100% of the transfer payments to the bottom 60%, as well as almost 100% of the tax revenue collected to run the federal government. Here are the details of that analysis.


The figures in Row 6 in the table above (and displayed in the graph above) show the amount of federal taxes paid by the average household in each income quintile minus the average amount of government transfers received by those households in 2011. For each of the three lower income quintiles, their average government transfer payments exceeded their federal taxes paid by $8,600, $12,500, and $9,100 respectively, and therefore the entire bottom 60% of US households are “net recipients” of government transfer payments.

2. About 70 percent of all government spending now goes toward dependence-creating programs.

3. From 2009 through 2013, the U.S. government spent a whopping 3.7 trillion dollars on welfare programs.

4. The percentage of the U.S. population that gets money from the federal government grew by an astounding 62 percent between 1988 and 2011.

5. According to an analysis of U.S. government numbers conducted by Terrence P. Jeffrey, there are 86 million full-time private sector workers in the United States paying taxes to support the government, and nearly 148 million Americans that are receiving benefits from the government each month.

6. According to the Survey of Income and Program Participation conducted by the U.S. Census, well over 100 million Americans are enrolled in at least one welfare program run by the federal government.  Sadly, that figure does not even include Social Security or Medicare.

7. Currently, there are somewhere around 40 million senior citizens in the United States.  By 2050, that number is projected to skyrocket to 89 million.  Supporting all of those senior citizens is going to be extraordinarily expensive.

8. Right now, more than 64 million Americans are receiving Social Security benefits.

9. Right now, more than 54 million Americans are enrolled in Medicare.

10. Right now, more than 70 million Americans are enrolled in Medicaid.

11. The number of Americans enrolled in the Social Security disability program now exceeds the entire population of the state of Virginia.

12. If the number of Americans on Social Security disability were gathered into a separate state, it would be the 8th largest state in the entire country.

13. In 1968, there were 51 full-time workers for every American on disability.  Today, there are just 13 full-time workers for every American on disability.

14. At this point, the federal government runs about 80 different “means-tested welfare programs”, and almost all of those programs have experienced substantial growth in recent years.

15. The number of Americans on food stamps has grown from 17 million in the year 2000 to more than 46 million today.

16. Ten years ago, the number of women in the U.S. that had jobs outnumbered the number of women in the U.S. on food stamps by more than a 2 to 1 margin.  But now the number of women in the U.S. on food stamps actually exceeds the number of women that have jobs.

17. Back in the 1970s, about one out of every 50 Americans was on food stamps.  Today, about one out of every 6.5 Americans is on food stamps.

18. Today, the number of Americans on food stamps exceeds the entire population of the nation of Spain.

19. According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”

20. According to a report from the Center for Immigration Studies, 43 percent of all immigrants that have been in the United States for at least 20 years are still on welfare.

21. Most Americans are not earning enough to support themselves and their families without government help anymore.  The following are some statistics about wages in the U.S. from a Social Security Administration report that was recently released

-39 percent of American workers made less than $20,000 last year.

-52 percent of American workers made less than $30,000 last year.

-63 percent of American workers made less than $40,000 last year.

-72 percent of American workers made less than $50,000 last year.

In order to have a middle class, you have got to have middle class jobs, and those are disappearing from our system very rapidly.

As a result, the number of people that are financially independent continues to drop.

So what will the future look like?

Will the government eventually have to take care of almost all of us?

TLB recommends you visit End Of The American Dream for more pertinent articles and information.

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By Michael Snyder, on November 24th, 2014

From the dawn of history, elites have always attempted to enslave humanity.  Yes, there have certainly been times when those in power have slaughtered vast numbers of people, but normally those in power find it much more beneficial to profit from the labor of those that they are able to subjugate.  If you are forced to build a pyramid, or pay a third of your crops in tribute, or hand over nearly half of your paycheck in taxes, that enriches those in power at your expense.  You become a “human resource” that is being exploited to serve the interests of others.  Today, some forms of slavery have been outlawed, but one of the most insidious forms is more pervasive than ever.  It is called debt, and virtually every major decision of our lives involves more of it.  For example, at the very beginning of our adult lives we are pushed to go to college, and Americans have piled up more than 1.2 trillion dollars of student loan debt at this point.  When we buy homes, most Americans get mortgages that they can barely afford, and when we buy vehicles most Americans now stretch their loans out over five or six years.  When we get married, that often means even more debt.  And of course no society on Earth has ever piled up more credit card debt than we have.  Almost all of us are in bondage to debt at this point, and as we slowly pay off that debt over the years we will greatly enrich the elitists that tricked us into going into so much debt in the first place.  At the apex of this debt enslavement system is the Federal Reserve.  As you will see below, it is an institution that is designed to produce as much debt as possible.

There are many people out there that believe that the Federal Reserve is an “agency” of the federal government.  But that is not true at all.  The Federal Reserve is an unelected, unaccountable central banking cartel, and it has argued in federal court that it is “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.  The 12 regional Federal Reserve banks are organized “much like private corporations“, and they actually issue shares of stock to the “member banks” that own them.  100 percent of the shareholders of the Federal Reserve are private banks.  The U.S. government owns zero shares.

Many people also assume that the federal government “issues money”, but that is not true at all either.  Under our current system, what the federal government actually does is borrow money that the Federal Reserve creates out of thin air.  The big banks, the ultra-wealthy and other countries purchase the debt that is created, and we end up as debt servants to them.  For a detailed explanation of how this works, please see my previous article entitled “Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand“.  When it is all said and done, the elite end up holding the debt instruments and we end up being collectively responsible for the endlessly growing mountain of debt.  Our politicians always promise to get the debt under control, but there is never enough money to both fund the government and pay the interest on the constantly expanding debt.  So it always becomes necessary to borrow even more money.  When it was created back in 1913, the Federal Reserve system was designed to create a perpetual government debt spiral from which it would never be possible to escape, and that is precisely what has happened.

Just look at the chart that I have posted below.  Forty years ago, the U.S. national debt was less than half a trillion dollars.  Today, it has exploded up to nearly 18 trillion dollars…

National Debt

But the national debt is only part of the story.  The big banks which control the Federal Reserve also seek to individually dominate our lives with debt.  We have become a “buy now, pay later” society and the results have been absolutely catastrophic.  40 years ago, the total amount of debt in our system was just a shade over 2 trillion dollars.  Today it is over 57 trillion dollars…

Total Debt

The big banks do not loan you money because they want to help you achieve “the American Dream”.  The elitists loan you money because it will make them wealthier.  For example, if you only make the minimum payment on a credit card each month, you will end up paying back several times as much money as you originally borrowed.  It is a very insidious form of debt enslavement that most Americans simply do not understand.

Meanwhile, the Federal Reserve is also systematically destroying the wealth that you already have.  If you try to buck the system and actually save money, the purchasing power of that money is continually being eroded by the Federal Reserve’s inflationary policies.  The following chart comes directly from the Federal Reserve and it shows how the value of the U.S. dollar has plummeted over the past 40 years…

Purchasing Power Of The Dollar

Overall, the U.S. dollar has lost approximately 98 percent of its value since the Fed was first established in 1913.

Most people seem to assume that if we could just send the “right politicians” to Washington D.C. that we could get our economy back on the right track.

What those people do not understand is that our system is fundamentally broken.  We are trapped in a perpetual debt spiral that is destined to end in a horrifying collapse.  Just “tweaking” a few things here or there and adjusting tax rates a bit is not going to fix anything.  The vast majority of the “economic solutions” that our politicians talk about are basically equivalent to rearranging the deck chairs on the Titanic.

And of course the elite don’t want the rest of us to truly understand what is going on.  Just think about it.  Even though the Federal Reserve is one of the most important institutions in our society, and even though it is at the very heart of our economic system, our kids are taught next to nothing about the Fed in school.  The vast majority of them have absolutely no idea where money comes from.

Isn’t that pathetic?

But the elite know that if we did understand what they were doing to us that most of us would start to get very upset.  Henry Ford, the founder of Ford Motor Company, once said the following…

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”

Please share this article with as many people as you can.  The truth sets people free, so let us do what we can to wake our fellow Americans up to this insidious debt enslavement system which dominates our society.


More info and links from this article:

student loan debt

the Federal Reserve is not an agency

The 12 regional Federal Reserve banks are organized “much like private corporations

private banks

Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand

a perpetual government debt spiral


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