Half of gold in central banks gone?

Half of gold in central banks gone?
Watchdog: ‘We want to expose and stop the manipulation’

Jerome R. Corsi
World Net Daily
January 29, 2008


U.S. central banks may have less than half the gold they claim to possess in their vaults, charges a watchdog group in an ad scheduled for publication in the Wall Street Journal this week.

As WND reported, the Gold Anti-Trust Action Committee, or GATA, claims the Federal Reserve and the U.S. Treasury are surreptitiously manipulating the country’s gold reserves by participating in undisclosed leases, according to an advance copy WND obtained of the ad running in Thursday’s edition of the Journal.

GATA believes much of the borrowed gold out on lease will never be returned to the central banks.

“With the demand for gold so strong worldwide, it has become impossible to return much of the leased gold without driving the price to the moon,” said GATA’s chairman, William J. Murphy III.

“Most observers calculate central bank reserves are supposed to have about 30,000 tons of gold worldwide in their vaults, but we believe the amount of gold actually there may be more like 15,000 tons,” Murphy said. “The rest of the gold is gone.”

The U.S. Treasury denies the claim, insisting the stock is accounted for regularly.

“We want to expose and stop the manipulation of the gold market by the United States Treasury and Federal Reserve right now,” Murphy said.

“The purpose of this ad is to wake people up in the investment world as to what is going on behind the scenes in the U.S. gold and financial markets,” Murphy told WND.

He explained GATA has decided to pay the Wall Street Journal $264,000 for a one-time placement of the full page ad in the national edition because the financial press has not covered the story.

“We have had two major international conferences since 2001; the mainstream financial press has blackballed our message,” Murphy explained.

“Anybody Seen Our Gold?” the ad is titled, charging U.S. gold reserves held at depositories such as Fort Knox or West Point may have been seriously depleted as they are shipped overseas to settle complex transactions utilized by the Federal Reserve and the U.S. Treasury to suppress prices.

GATA further charges the U.S. government strategy to manipulate the price of gold has begun to fail.

“The objective of this manipulation is to conceal the mismanagement of the U.S. dollar so that it might retain its function as the world’s reserve currency,” the ad copy reads.

“Gold’s recent rise toward $900 per ounce shows that the price suppression scheme is faltering,” GATA says. “When it is widely understood how central banks have been suppressing gold, its price may rise to $3,000 or $5,000 an ounce or more.”

As evidence of gold price manipulation by the U.S. Treasury and the Federal Reserve, GATA cites Treasury’s weekly report of the government’s international reserve position that since May has listed gold loans and swaps as a line item in accounting for U.S. gold reserves.

The ad also cites a July 24, 1998, statement by then-Federal Reserve Chairman Alan Greenspan, who told Congress “central banks stand ready to lease gold in increasing quantities should the price rise.”

Read Full Article Here


New Gold Record at $923, Oil $91

New record for gold price at $923

January 25, 2008


The price of gold has set another record high, reaching $923 an ounce, after power cuts in South Africa closed mines and fuelled supply fears.

The metal was also boosted by the rise in oil prices. New York crude jumped $1.19 a barrel, extending heavy gains on Thursday to trade close to $91.

Gold is seen as an attractive investment in times of economic uncertainty and oil-led inflation.

Gold prices increased by more than 30% in 2007 and further gains are forecast.

Gold rush

Since the start of the year, the gold price has set a series of records, as many companies have predicted weaker earnings and global lending markets remain troubled.

Worries that the dollar will remain weak as a result of further US interest rate cuts are another factor behind the gold rush.

JP Morgan analysts forecast in a note to clients that gold could reach between $950 and $975 this year.

“Precious metals is a very strong picture,” said Graham Birch, head of BlackRock’s Natural Resources fund.

The rally was exacerbated by the suspension of production at some of the world’s biggest gold mines in South Africa, after the country’s state power supplier, Eskom, said it could not guarantee supplies.

Eskom said the power crisis would last for four weeks, but many observers expect the problems to persist for many years.

Feds Accused Of Gold-Price Manipulation


Fed Cuts Interest Rates 75 Basis Points

Fed Cuts Interest Rates 75 Basis Points

January 22, 2008


The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, slashed a key interest rate by three-quarters of a percentage point on Tuesday and indicated further rate cuts were likely.

The surprise reduction in the federal funds rate from 4.25 down to 3.5 percent marked the biggest funds rate cut on records going back to 1990.

Federal Reserve Chairman Ben Bernanke and his colleagues took the action after an emergency video conference on Monday night, a day when global markets had been pounded by rising concerns that weakness in the world’s largest economy was spreading worldwide.

Despite the Fed’s bold move, Wall Street plunged at the opening. The Dow Jones industrial average was down 311.99 points in the first hour of trading.

In a brief statement explaining its move, the Fed said that “appreciable downside risks to growth remain” and officials pledged to “act in a timely manner” to deal with the risks facing the economy. The action was approved on an 8-1 vote.

Analysts said the fact that the Fed did not wait until its meeting next week to cut rates underscored the seriousness of the situation.

“The world’s stock markets are in meltdown so the Fed came in with an inter-meeting move to try to stop the panic,” Christopher Rupkey, senior economist at Bank of Tokyo-Mitsubishi.

The Bush administration, which had announced on Friday that President Bush supported a $150 billion economic stimulus package, said Tuesday that it was not ruling out doing more than the $150 billion proposal if necessary.

Many analysts said if the carnage continues in stock markets, the Fed will move to cut rates again at its Jan. 29-30 meeting.

“This move is not an instant fix,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics. “The economy is still staring recession in the face, but at least the Fed now gets it.”

Read Full Article Here


‘Fed may keep cutting interest rates’

Western Mail
January 23, 2008

There could be more interest rate cuts to come as the US Federal Reserve tries to head off recession.

Howard Archer of Global Insight said the prospect of a US recession suggests the Fed may keep cutting rates.

Yesterday’s surprise decision to cut US rates by 0.75% helped rally London’s FTSE-100 index, after £76bn had been wiped off its value on Monday. The index of leading shares closed 161.9 up at 5740.1, a gain of 2.9% after Monday’s 5.5% fall.

The Fed’s cut to 3.50% was its first emergency move since 2001 and the largest single reduction since 1984.

Mr Archer of Global Insight said “The Fed did not directly reference Monday’s global stock-market meltdown in its announcement, merely noting that ‘broader financial market conditions have continued to deteriorate’. It focused upon the weakening outlook for growth.”

Read Full Article Here


US rates ‘heading for 2.5% by the spring’

The Scotsman
January 23, 2008

American interest rates are set to tumble as low as 2.5 per cent by early spring as US policymakers battle to restore stability to a faltering economy.

Economists said they expected the Federal Reserve to have shaved another full point off borrowing costs by its scheduled April meeting.

The prediction came after yesterday’s surprise three-quarter-point cut to 3.5 per cent – a move that appeared to have only limited success in restoring investor confidence.

Bonds jumped sharply, with two-year notes falling to their lowest in nearly four years, as investors prepared for still more rate- cutting.

In London, the benchmark FTSE 100 index of Britain’s biggest companies closed 161.9 points or nearly 3 per cent higher at 5,740.1 following a rollercoaster session and the previous day’s 323-point battering.

Nigel Gault, chief US economist at forecasting body Global Insight, said the prospect of “at least a mild US recession” suggested the Fed was “far from done cutting rates”.

He added: “We now expect the Fed to cut another cumulative 100 basis points off interest rates. The next instalment will probably come at the formal meeting on 30 January – another 25 or 50 basis points. We would expect to hit 2.5 per cent by the April meeting.”

Yesterday’s decision to slash interest rates came a week before the US central bank’s regularly scheduled meeting, a sign that it acknowledges that the global financial situation is serious.

David Jones, chief economist at DMJ Advisors, said the Fed could move again between meetings, should conditions deteriorate further, and predicted the Fed would lower interest rates to 3 per cent by the end of March.

Earlier this month, leading investment bank Merrill Lynch said the US economy was already in recession.

Some analysts pointed to a panic move by the Fed, which is headed by chairman Ben Bernanke. Michael Metz, chief investment strategist at Oppenheimer in New York, said: “Unfortunately the Fed] have no power to reverse what in my opinion is the worst post-war recession.”

Read Full Article Here

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Giuliani’s Advisor Calls For Palestinian Collapse

Giuliani’s Advisor Calls For Palestinian Collapse

Ethan Allen
Rogue Government
January 4, 2008

Daniel Pipes, a neocon analyst and Giuliani campaign advisor, recently wrote a piece for JewishWorldReview stating that a Palestinian economic collapse would be good for Israel and the west. Throughout the Bush administration, warhawks like Pipes have been leading foreign policy and encouraging deeper commitments of the west in supporting Israel’s open warfare campaigns against the Palestinian people. In his recent article, Pipes states:

“Exhilaration, not hardship, accounts for bellicose Palestinian behavior. Accordingly, whatever reduces Palestinian confidence is a good thing. A failed economy depresses the Palestinians’ mood, not to speak of their military and other capabilities, and so brings resolution closer.

Palestinians must experience the bitter crucible of defeat before they will drop their foul goal of eliminating their Israeli neighbor and begin to build their own economy, polity, society, and culture. No short-cut to this happy outcome exists. Who truly cares for Palestinians must want their despair to come quickly, so that a skilled and dignified people can move beyond its current barbarism and built something decent.

The huge and wasted outpouring of Western financial aid, ironically, brings on that despair in two ways: by encouraging terrorism and by distorting the economy, both of which imply economic decline. Rarely has the law of unintended consequences worked so imaginatively.”

Read Full Article Here

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Economic Expert Says Global Crash Imminent

Economic Expert Says Global Crash Imminent
Echoes former world bank leader with prediction of global recession

Steve Watson
November 20, 2007

A leading economic expert has warned that a global crash and recession is imminent on the back of record highs in real estate, stocks and energy, combined with a devaluation of the dollar and continued “speculative bubble thinking”.

Robert Shiller, the Stanley B. Resor Professor of Economics at Yale University told an audience at the annual Dubai International Financial Centre (DIFC) Week that a sharp downward correction is due in the global markets.

Shiller stated:

“Perhaps we have gotten a little too confident in the global economic growth,” said Shiller. “The problem is high oil, stock and real estate prices. I believe that a substantial part is speculative bubble thinking. We have gotten too confident of the prices in these markets,”.

“The unwinding of these markets is the most serious risk facing these markets today,” Shiller added.

With the effects of the credit crunch hitting more and more lower level lenders, it is clear to see that the fallout is spreading and propagating a general decline. We are seeing the unfolding of an overall meltdown that represents a gutting of the United States by neo-mercantilist institutions bent on the formation of a new global monopoly.

Shiller also pointed to the futures market, such as that of the CME in Chicago, which now predicts a major, ongoing decline over the coming four years.

We are witnessing the unfolding of a crash exactly as predicted by Former World Bank Vice President, Chief Economist and Nobel Prize winner Joseph Stiglitz last year.

Stiglitz agreed that the process of hijacking and looting key infrastructure on the part of the IMF and World Bank, as an offshoot of predatory globalization, has now moved from the third world to Europe, the United States and Canada.

Stiglitz warned that the signs were there with plummeting real estate prices in the U.S., stating that a global economic depression could only be avoided if a correction was made.

But no correction will be made because the World Bank/IMF/Globalist doctrine betrays a focused agenda to deliberately foment economic turmoil, riots, and then enforced bondage to eternal debt. We have witnessed this time and time again, their own documents even confirm this as the chosen method of social control.

The shareholders of Federal Reserve, part of the same group of elite families that owns the bank of England, created the IMF and World bank to siphon government funds. Then they effectively steal the real assets of the third world countries that take their loans in some cases at 42% interest. These global loan sharks secure the water, power and roads which are then handed over to private, piratical, letter of mark companies.

China Voices Alarm at Dollar Weakness

Financial Times
November 19, 2007

China on Monday expressed concern at the decline in the dollar, joining a growing chorus of global policymakers alarmed by the weakness in the world’s main reserve currency.

Premier Wen Jiabao told a business audience in Singapore it was becoming difficult to manage China’s $1,430bn foreign exchange reserves, saying that their value was under unprecedented pressure.

“We have never been experiencing such big pressure,” Mr Wen said, according to Reuters. “We are worried about how to preserve the value of our reserves.”

China keeps the currency composition of its reserves a state secret, but some analysts believe that more than two-thirds are probably still held in dollars.

Mr Wen’s comments came as top international economic officials spoke out in support of a strong dollar in the aftermath of the weekend’s Group of 20 summit in South Africa and Opec meeting in Riyadh.

Hank Paulson, US Treasury secretary, told reporters in Ghana: “A strong dollar is in our nation’s interest.”

He said the US economy had its “ups and downs” but he believed that “our long-term economic strength will be reflected in currency ­markets”.

Mr Paulson and other top US officials, including President George W. Bush, have become increasingly vocal on the dollar in recent days in an apparent effort to signal that they are not indifferent to its fate.

Zhou Xiaochuan, China’s central bank chief, said Beijing wanted a strong dollar because it would help to ensure an orderly resolution of the recent market instability caused by US mortgage lending problems.

“So in this sense, actually we hope to see a strong dollar,” Reuters quoted Mr Zhou as saying. “We support a strong dollar.”

Jean-Claude Trichet, president of the European central bank, told reporters that Mr Zhou’s remarks “echoed what has been said by the monetary authorities of the US”.

“What we are witnessing is unco-ordinated verbal intervention,” said Stephen Jen, head of currency research at Morgan Stanley. “This is useful as in the absence of it, investors and speculators would have interpreted it as the authorities condoning what was going on in the currency markets.”

The Japanese yen rallied against a range of currencies on Monday, notably commodity-based rivals such as the Canadian and Australian dollars. The prospect of China allowing its currency to appreciate against the dollar drove sentiment, traders said.

The dollar was largely unchanged in early US trading. The US currency has shown some tentative signs of stabilisation in the past few days, but many analysts remain bearish.

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Goldseek: Lindsay Williams on Economy Collapse and Amero

Goldseek: Lindsay Williams on Economy Collapse and Amero

What is the ‘North American Union’?


IMF Badmouths The Dollar In Open Attack On American Middle Class

IMF Badmouths The Dollar In Open Attack On American Middle Class

As part of broader elitist strategy to lower living standards and create two-caste Chinese model

Paul Joseph Watson
Prison Planet
October 19, 2007

Mirroring recent rhetoric from Alan Greenspan, Ben Bernanke and Henry Paulson, the IMF has publicly badmouthed the dollar, claiming it is “overvalued” despite the fact it has lost over half of its value against the Euro since 2001, and predicts its plunge as part of a broader strategy to sink the American middle class.

Countering the pleas of the French and other eurozone countries, who have been forced to beg Bernanke to restore some trust in the greenback as EU exports begin to feel the bite, the IMF has openly and enthusiastically given the green light for traders to continue to sell the dollar.

“The Fund thinks that the US current account deficit will remain close to 1.5 per cent of world output until 2012, raising the likelihood of a disorderly plunge in the dollar and protectionism growing over the next few years,” reports the Financial Times.

In their World Economic Outlook brief, the IMF brazenly states that the agenda in continually badmouthing the dollar is to exalt the Chinese Renminbi in order to contribute to “a necessary rebalancing of demand and to an orderly unwinding of global imbalances.”

In layman’s terms, this means lowering the living standards of the American middle class by tanking the dollar and sending oil prices skyrocketing towards $200, as part of the “post-industrial revolution” agreed upon by the Bilderberg Group. This would eviscerate the middle class and create a two-caste system based upon the Chinese model, where the super-rich live in opulence and the rest of the population are forced to struggle on the poverty line.

With the effects of the credit crunch hitting more and more lower level lenders, it is clear to see that the fallout is spreading and propagating a general decline. We are seeing the unfolding of an overall meltdown that represents a gutting of the United States by neo-mercantilist institutions bent on the formation of a new global monopoly.

The ceaseless bad-mouthing of the dollar in public is clearly part of an orchestrated move to destroy the U.S. economy and pave the way for the Euro to become the world’s reserve currency, eventually heralding the birth of the Amero – the currency of the North American Union.

Former Fed Chairman Alan Greenspan has also been active trashing the greenback over the last two months, in September stating that the Euro would replace the dollar as the global reserve currency of choice.

Also last month, Congressman Ron Paul slammed Federal Reserve Chairman Ben Bernanke for deliberately depreciating the value of the dollar to artificially bail out Wall Street while poor and middle class people lose their homes and have their living standards lowered (watch below).


Paul questioned how it could ever be morally justifiable to deliberately depreciate the dollar and pointed out the fact that the dollar collapse was a deliberate policy on behalf of the Fed.

We are witnessing the unfolding of a crash precisely as former World Bank Vice President, Chief Economist and Nobel Prize winner Joseph Stiglitz predicted last year.

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Oil Futures Hit New Record Above $86

Oil surges near $88 a barrel

Javier Blas

Financial Times
October 16, 2007

Oil prices rose to fresh records on Tuesday, with US crude surging near $88 a barrel, and pushing gold to a new 28-year high as investors feared a spike in inflation.

The threat of a Turkish military operation against Kurdish militia in northern Iraq contributed to the oil price increase, but traders said the main factor of the rally was low US inventories, strong demand and a timid production increase from the Organisation of Petroleum Exporting Countries.

Francisco Blanch, chief commodities strategist at Merrill Lynch, added that an early winter cold snap or a serious geopolitical problem in the Middle East “could drive oil prices even to $100 a barrel.”

Doug Leggate, of Citigroup in New York, added: “A run to $90 is now seen as reasonable.”

Nymex November West Texas Intermediate rose to a high of $87.97 a barrel and later was trading $1.57 higher to $87.70 a barrel. ICE November Brent rose to an all-time high of $84.26 a barrel.

Low inventories prompted Opec recently to agree to boost output by 500,000 barrels a day from November. The cartel opted for a meagre increase on concerns about the strength of the global economy and oil consumption. However, Opec on Monday acknowledged that demand for its crude oil will be stronger than expected this winter.

“Downward [economic] pressure has receded in recent weeks, following the US Federal Reserve’s decision to cut US interest rates by half a percent,” Opec said.

Paul Horsnell, of Barclays Capital in London, said that demand growth was strong relative to non-Opec weak supply increases.

Spot gold prices in London surged to a 28-year high of $766.60 an ounce as the oil price jump sparked worries about an inflation spike and investors continued to seek refuge against a weakening US dollar. Gold hit an all-time record of $850 an ounce in January 1980.

Precious metals traders reported strong buying from Japanese investors.

Spot platinum traded at $1,420 an ounce, just below Monday’s all-time record of $1,428 an ounce.

The World Gold Council on Monday cut its forecast for India’s gold consumption this year to 15-25 per cent, in the first sign that record high gold prices are beginning to dent jewellery demand, one of the main supports of gold’s recent price surge.

Earlier in the year, the WGC, which is backed by the gold industry, had predicted that gold consumption in India, the world’s biggest gold consumer, would rise almost 40 per cent this year.

Ajay Mitra, WGC managing director in India, said: “Due to the spike in prices, we are a little cagey.”

Base metals were also stronger, with the exception of copper with traded flat at $8,155 a tonne. Aluminum rose 0.1 per cent to $2,492 a tonne while lead rose 0.3 per cent to $3,823 a tonne.

Coffee continued to slide as rain fell over Brazil, the world’s largest coffee producer. Euronext.Liffe November Robusta coffee prices in London fell 2.3 per cent to $2,028 a tonne, below a 10-year high of $2,234 a tonne reached last Friday.

Wheat prices in Chicago fell to $8.26 a bushel, the lowest level in four weeks.

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Alan Greenspan’s Role in US Dollar Collapse

Alan Greenspan’s Role in US Dollar Collapse


Fed Projects a Four Year Long Recession

Fed Projects a Four Year Long Recession

Mike Swanson
Wall Street Window
September 24, 2007

Aside from the dollar and long-term bonds all markets went up last week as the Fed demonstrated that it is more fearful of a slowing economy and banking woes than inflation. In fact, it is willing to sacrifice the dollar to save the banks. Just last month, the Fed was saying that the threat of inflation is just as great as the threat of a slowdown in the economy. Now it is cutting rates in a huge way as the DOW is near its all-time high, gold is making new highs, and the price of oil is exploding.

The Fed is obviously terrified. I have noted in the last podcast that Bernanke built his career on a doctoral thesis that claimed that the Fed didn’t cut rates fast enough during the 1929 stock market crash. But if you look at a chart of the Depression bear market with an overlay chart of interest rates you’ll see that the Fed cut interest rates as the market topped. A few years later when the market finally bottomed you’ll see that they had been lowering rates all of the way down.

What Bernanke believes is that the Fed should have cut rates all at once during the start of the bear market instead of gradually over two years. He seems to be putting this belief to work right now. It means that he is gravely concerned about the state of real estate and banking in the United States.

As the NYT reports:

Those wanting to understand the Fed’s reversal can profit from reading two papers by Fed officials which were released this summer as the credit squeeze was worsening.

Taken together they constitute an admission that the Fed was surprised by the housing and borrowing boom on the upside, and now it fears it will be surprised on the downside.

One paper, by Karen E. Dynan, a Fed economist, and Donald L. Kohn, the Fed’s vice chairman, asked why a strong economy had left Americans deeper in debt than ever before.

“The most important factors behind the rise in debt and the associated decline in saving out of current income have probably been the combination of increasing house prices and financial innovation,” they concluded. In other words, Wall Street and rising home prices made it easier to borrow more money, and consumers did so.

That led to more consumption than would have been expected. Now, the authors say, “an unexpected leveling out or decline” in home values could have the opposite effect.

And, Frederic S. Mishkin, a Fed governor, said in the other paper that this leveling or decline could, in turn, have a bigger effect on the economy than the Fed anticipated.

“Although I generally do not place the housing and mortgage markets close to the epicenter of previous cases of financial instability,” he wrote, “I would note that the current situation in the U.S. could prove to be different.”

Mr. Mishkin said he had modified one Fed economic model, concluding that a 20 percent fall in home prices could cause consumer spending to fall by 2 percent within two years, about twice what the old model forecast.

But that was not the point Mr. Mishkin wanted to emphasize. Instead, his model showed that much of that damage could be averted if the Fed acted rapidly to cut rates — as it is now doing.

When Alan Greenspan was at the Fed he often had Fed governors write papers to rationalize and justify changes in Federal Reserve policy. One should read the Mishkin paper mentioned above to understand what the Fed is doing now. If the credit markets don’t revitalize in the next few weeks you can expect to see the Fed lower rates again by another 50 points at their October FOMC meeting no matter where the Dollar, Gold, or the DOW are. They have signaled that they don’t give a damn about the Dollar. All they care about is Wall Street.

One could look at this another way though. One could say that they don’t care about inflation because they see a total bust in housing that will create deflationary pressures in the economy. Mishkin’s paper projects negative GDP growth for the next five years, a Federal Funds rate falling two full points lower, consumer spending shrinking for five years, and the CPI going down and staying negative if housing prices decline by 20%. These negative trends are expected to begin now and accelerate for two and a half years.

He sees such a housing price decline as very likely as house prices fell by 16% from late 1979 through late 1982. Contrary to people who believe that real estate is the best investment you can buy because it never drops, it has dropped in the past. And with bubbles leading to busts it is happening right now. The question remains, when will it stop? When the Nasdaq topped in March of 2000 it didn’t bottom for two full years. Real estate topped out a year ago.

Mishkin isn’t just a normal Fed governor. He is one of Ben Bernanke’s closest friends. The two served at Columbia university together and in 1997 they wrote a book together calling on central banks to make public targets for inflation. Mishkin’s views dovetail with Bernanke’s.

According to Mark Zandi, co-founder of Moody’s, housing prices will decline by at least 11% in the next 3 1/2 years. Zandi sees prices in New York city falling from between 1 percent and 7 percent for each of the next five quarters so there is a lot of leeway in his projections. Hey, if we only get an 11% decline and you cut the Fed model projections in half we’re still facing a horrible recession.

Mishkin argues that “the task for a central bank confronting a bubble is not to stop it but rather to respond quickly after it has burst.” Instead of lower ratings as economic conditions deteriorate as his models do, and show practically a depression coming as a result, he advocates cutting rates all at once just as Bernanke’s doctoral thesis about the 1929 stock market crash argues.

What I have to wonder though is what happens if the Fed lowers rates by one percent or more in the next three months and real estate doesn’t rebound? These theories have never been tried before by a Central bank. We don’t know if cutting rates all at once will prevent the damage caused by a bursting bubble. It has never been tested. Even when the tech bubble burst in 2000, Alan Greenspan didn’t lower rates until almost a year later and after the Nasdaq fell to almost half its value.

The problem is real estate is still overvalued just as tech stocks became overvalued in 2000. One would think that real estate will have to drop and return to a normal valuation before it can bottom out, so simply lowering interest rates may not have the wonderful effects that Mishkin and Bernanke hope they will.

What I do know for sure, which is all you need to know to make money, is that they are setting up an inflationary trend. As the Fed prints more money it has to go somewhere. Of course this is bullish for gold and commodities which are now leading the stock market. But it is possible that the DOW and broad market could also continue to go up too.

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Greenspan Confronted By Activists, Flees From Angry Mob

Greenspan Confronted By Activists, Flees From Angry Mob
WeAreChange Unmask Former Federal Reserve Chair’s Role in Globalist Takeover and Currency Assassination

Aaron Dykes
Prison Planet
September 21, 2007

Activists angry at Alan Greenspan’s recent deliberate attack on the U.S. dollar— which has already resulted in further devaluation and asset seizure by foreign entities– gathered at an event in New York to confront the former Federal Reserve Chairman on his shameful actions in contributing to a dollar collapse.

Members of were grabbed by police and forced out of the building after criticizing Greenspan for “destroying the country.” Individuals who waited in line to ask Greenspan a question were told that there were “no interviews” by event handlers, who then signaled for police to take over.

Nate Evans was grabbed by more than four officers after criticizing the “Federal” private bank Greenspan previously headed. Other activists confronted Alan Greenspan as he left the event, giving him a public shaming for acting on behalf of his globalist masters.

While the globalist-controlled mainstream media rewards economic sabotage by portraying Greenspan and other financiers as economic ‘saviors,’ it is refreshing to know that many others are standing up in defiance of deliberate devaluation.

Congressman Ron Paul ripped into current Federal Reserve Chairman Ben Bernanke yesterday for intentionally weakening the dollar and misleading the public when his sole function is supposed to be maintaining the value of the dollar.

Now activists from are taking commendable action to expose the fact that these financial figureheads– and not a subservient Bush Administration– are to blame for the unfolding consolidation of middle-class wealth as well as the liquidation of U.S. infrastructure to foreign and global interests– a frightening and intentionally-triggered phenomenon that has already surfaced in publicized buyouts such as the Saudi acquisition of NASDAQ shares and Abu Dhabi’s stake in the Carlyle Group.

We salute individuals like Nate Evans, Gary, Luke Rudkowski, Matt Lepacek and others from, as well as the few in Congress like Ron Paul and Bernie Sanders willing to take action and expose the real culprits of U.S. currency assassination.

Greenspan Admits Fed Is Above The Law

Abe Day
Prison Planet
September 21, 2007

This week, former chairman of the Fed Reserve Alan Greenspan in an interview aired on PBS’ News Hour was asked by Jim Lehrer what should be the proper relationship between a chairman of the Fed and The President of the United States. In a shockingly honest tone Greenspan replies,

“Well, first of all, the Federal Reserve is an independent agency, and that means, basically, that there is no other agency of government which can overrule actions that we take. So long as that is in place and there is no evidence that the administration or the Congress or anybody else is requesting that we do things other than what we think is the appropriate thing, then what the relationships are don’t, frankly, matter.”

This issue with the Fed being above government is one of the key things We The People need to understand in order to wake up to the awful situation that we have found ourselves in. Our wealth, our labor, and anything we gain buy being productive has been stolen from us since the Federal Reserve took over our money system in the 1913.

Most people believe the Fed to be a government agency overlook by the President of the United States. Others fully believe the statements of Mr. Greenspan but don’t really understand what it means to have an “independent agency” (i.e. private banks) be above The Presidency, The Congress and Senate, and the Supreme court of the United States. This power to create money has been given over to a group of businessmen not beholden to our U.S Constitution; a document to protect our God given freedoms from tyranny. Hopefully enough of our rising generation can learn this sad truth and vote to return the power to regulate money back into the hands of those to whom it belongs…We The People.

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Ron Paul Slams Bernanke For Dollar Meltdown

Ron Paul Slams Bernanke For Dollar Meltdown


Kissinger Admits Iran Attack Is About Oil

Kissinger Admits Iran Attack Is About Oil
“So what?, we need the oil,” sneer deluded Neo-Cons as oil prices explode due to orchestrated artificial scarcity

Paul Joseph Watson
Prison Planet
September 21, 2007

In a new op-ed, Bilderberg luminary Henry Kissinger admits that U.S. hostility against Iran is not about the threat of nuclear proliferation, but as part of a larger agenda to seize Iranian oil supplies. But the true meaning behind this is lost on Neo-Cons, who are still deluded into thinking that Americans benefit from the imperial looting of natural resources in the middle east.

In a Washington Post op-ed, Former US Secretary of State Kissinger comes clean on the true motives behind the planned military assault on Iran.

“An Iran that practices subversion and seeks regional hegemony – which appears to be the current trend – must be faced with lines it will not be permitted to cross. The industrial nations cannot accept radical forces dominating a region on which their economies depend,” writes Kissinger.

As blogger Robert Weissman points out, the “legitimate aspirations” that Kissinger affords Iran later in the piece “do not include control over the oil that the United States and other industrial countries need.”

According to the CIA’s world factbook, Iran has the world’s second largest reserves of conventional crude oil at 133 gigabarrels. Adding non-conventional oil, Iran holds 10% of the global oil supply.

Kissinger’s admission that U.S. control of Iranian oil supplies is the real agenda behind hostility towards Iran would raise eyebrows and bring condemnation from many, but there are a hard core of Neo-Con cheerleaders who would support such an agenda even if it is openly accepted that nuclear proliferation is just a smokescreen for looting more middle east oil.

That is because they are still deluded into thinking that foreign wars of aggression to monopolize natural resources make America, and as a consequence make them, richer and more prosperous – when nothing could be further from the truth.

The fact that the Iraq invasion was about oil is a familiar cliche that was even acknowledged by Alan Greenspan last week.

“So what? We need that oil,” the Neo-Cons sneer.

Americans don’t benefit from the Globalists’ control of Iraqi oil because the agenda is to artificially restrict global oil supplies in order to jack up prices and reduce the living standards of industrial countries.

The oil flowing out of Iraq has never recovered to pre-invasion levels and still stands at a measly 0.5 gigabarrels a year, a huge chunk of which is piped directly to Israel.

This artificial scarcity is the stated goal of Bilderberg luminaries like Kissinger and José Manuel Barroso, who have sworn to inflate prices up to $200 dollars a barrel and spark the onset of a “post-industrial revolution”, which translates as another economic depression and a wholesale “correction” of living standards that will all but obliterate the middle class.

Neo-Cons who trumpet the ethnic cleansing of the middle east using the twisted logic that it benefits Americans as their dollar sinks to peso level and gas prices explode while the cost of living becomes unaffordable are living in a complete fantasy world, but when the wake up call arrives the consequences of their ignorance are going to reap a hellish revenge.


Bernanke panics by ’launching a nuclear missile into the financial system’

Bernanke panics by ‘launching a nuclear missile into the financial system’
“By lowering interest rates by half a point while the market priced in a quarter point drop and the US dollar index is under 80 Bernanke is doing the equivalent of launching a nuclear missile into the financial system.”

Mike Swanson
Commodity Online
September 20, 2007

I was shocked by yesterday’s decision by the Federal Reserve to lower interest rates by 50 basis points and then signal that there is more to come in its statement. The Fed is in a tough bind. I know there are frightening things happening in the credit markets and banks and Wall Street is clamoring for rate cuts. We saw the near collapse of Countrywide Financial a few weeks ago and England’s Northern Rock has experienced a full fledged bank run. At the same time though inflation is accelerating as oil prices hit all-time highs and gold breaks through $700 an ounce and the DOW is only 1.7% off of its all-time high.

Look the Fed saved the stock market from crashing on August 16th by intervention. We’ve since seen a rally going up into yesterday’s expected Fed announcement while the credit markets continued to deteriorate. The move down in July was the first act of a financial crisis – and normally those unfold in two stages. The first being when people realize there is a big problem causing huge frightening losses the extent of which are unknown and are forcing institutional investors to selling due to margin calls and redemptions.

The second act is when the market finds out how big the losses are and who has them. This is what happened in 1998. The market fell hard in August of that year due to turmoil in the international bond market, bounced, in September, and then dropped hard again to form a double bottom when the Long-Term Capital hedge fund blew up.

If the Fed hadn’t lowered interest by .50 basis points yesterday the market most likely would begin a correction by the end of this week that would bring it down to retest the August lows by the middle of October. The market most likely would have then made a double bottom and be geared up to up through the end of the year. If the Fed had to it could have even intervened again to force a bottom.

Just about everyone expected the Fed to lower rates by a .25 basis points yesterday. To me this seemed like the logical thing to do. This way the Fed would save some ammo for later and deliver a message that it was there to step in if needed, but things weren’t too serious.

But by lowering rates by .50 points the Fed not only surprised the stock market, which forced shorts to close out positions and caused people to react to the news and create an outsized rally, but sent a very powerful message: The Fed will not allow the market to have a pullback of any sort. The Fed will not allow banks that made bad loans to go under and simply doesn’t care about inflation or the value of the dollar at this stage of the game.

I know many people reading this are excited to see the market go up, but you need to step back and think about things for a minute. Why did the Fed do what it did yesterday? What the Fed did is dire, because it is lowering interest rates in a huge dramatic way when the DOW is only 1.7% off of its all-time high and inflation is accelerating. Not even Alan Greenspan did anything like this.

This is one of the most shocking things I’ve ever seen in the markets. August 16th was shocking. And if you listened to my podcast the following weekend you know it troubled me. I thought the stock market almost crashed that day and I took it as a sign that the macro big picture was changing – that subprime was a true problem in the markets that could lead to a wipeout in the coming weeks. I did not know what was going to happen, but I decided to actually stay out of the markets for the most part until the picture became more clear.

Well, past history suggested that we would see a retest of the lows and the success or failure of that retest would tell us the depth of the credit problems and give us a good idea of what the market would do the rest of the year.

Yesterday the Fed lowered rates by .50 points to shock the markets and force a rally to prevent such a retest. Yesterday is just as dramatic as the market action on August 16th, because it does indeed tell us that the macro picture is changing in a big way. A way that I didn’t anticipate, because it is incredibly reckless and dangerous on the part of the Federal Reserve. It is almost insane. It would be the equivalent of George Bush saying “I am losing in Iraq and I need to win a war somewhere so I am going to launch nuclear strikes on Iran so I can go out a winner. Dick Cheney says it is a good idea so it must be.” By lowering interest rates by half a point while the market priced in a quarter point drop and the US dollar index is under 80 Bernanke is doing the equivalent of launching a nuclear missile into the financial system.

When the stock market went bust in 2000 Greenspan didn’t lower rates to almost a year later and with the Nasdaq almost cut in half. During the 1998 Long-Term Capital Crisis he first cut by a quarter point and then lowered rates later when the market dropped again. The Fed is supposed to lower rates as you approach the trough of a business cycle, not right up near the top when there is inflation. To do so is very dangerous and if Bernanke continues this course he will destroy the value of the dollar. The Fed is saying that it will now print money like mad to prevent any sort of market pullback of any kind and it doesn’t care about the value of the dollar. The US Dollar index is trading below its 30 year support level and will eventually collapse if the Fed continues upon the course that it announced yesterday.

And he is sending a message that he is willing to do this.

I can think of only two reasons:

1)The problems in the mortgage markets are worse than we know and the entire banking system is bankrupt. In other words the mortgage securities that banks hold are worth nothing. The Fed in turn is going to print money and lower interest until housing prices go back up, so mortgage securities will rally, and if inflation explodes and the dollar becomes worthless it is worth the cost, because the banks must be saved. And the banks own the Fed.

Of course this seems crazy. Yeah there is turmoil in the banking system, but can it really be that bad? But it would have to be to justify such action on the Fed and even then some would argue that its not worth jeopardizing the dollar to save the banks.

Just because the Fed panics doesn’t necessarily mean there is anything to fear. If you recall at the end of 1999 Alan Greenspan pumped the money supply in fears of a phantom Y2K menace. That action helped create the final blow-off for the Nasdaq bubble and made the ensuing bear market worse than it would have been. It was a huge mistake.

If the banking system isn’t about to go bankrupt then to cut interest rates at this pace is a mistake that makes the Y2K menace look like a little bruise on a knee.

2)Ben Bernanke has a PH.D in economics and is obsessed with the idea that the Fed caused the Great Depression, because it didn’t lower interest rates fast enough. He’s an academic who is putting the theories he learned as a young man to use.

I can understand this. I was an academic once. I was in a university PH.D history program and left with a Master’s Degree. I know what academic life is about. When you go through graduate school you have to write a doctoral thesis, which will start your real career. Usually those thesis – if they are successful – lead to books and then more writings that branch off of the original thesis. Creative minds, and there is a difference between being imaginative and smart, then investigate new avenues of thought throughout their careers and come up with innovative theories and groundbreaking research.

The unimaginative though spend the rest of their career circling around the theories behind their doctoral thesis. They remain anchored to it and don’t actually come up with any new ideas the rest of their lives that amount to anything. They may be successful professionally, but deep down they aren’t anything but a one hit woner.

That is essentially what Bernanke is. He wrote a thesis claiming that the Great Depression happened because the Fed didn’t lower interest rates fast enough after the stock market topped out in 1929. I don’t believe this at all, but to explain why is a subject left for another time. What is important though is that if you look at a chart of the stock market between 1929 and 1932 and look at what the Fed did you’ll see that the Fed lowered interest shortly after the market topped out and continued to lower rates in the following years and the market fell anyway. Rates and the stock market fell together.

What this means though is ff you believe the Fed didn’t lower rates interest fast enough as Bernanke does then you think the Fed should have lowered rates all at once instead of doing so as the market dropped.

It appears that Bernanke is putting that theory to test right now. At the very least he is trying to prevent the market from reaching phase two of this crisis, in which the extent of the subprime losses are revealed, by restoring the balance sheets of troubled hedge funds with a big stock market rally of his creation.

Based on Bernanke’s Depression thesis it seems that he is going to lower rates dramatically and quickly over just a few months, because he believes that if he doesn’t the banking system will collapse, the stock market will crash, we’ll have a Depression or who knows what. In the end this probably won’t make any bit of difference and will cause a hyperinflation of consumer prices and a collapse in the value of the dollar – and may not be even needed at all. He’s fearing that the credit markets and banking problems justify such a course of action, but that isn’t a 100% certainty. Maybe the problems aren’t as bad as he fears. But we won’t know that.

Instead a year from now if he continues this course we’ll have a different set of problems – a dollar that has collapsed in value and eventually a huge spike in interest rates as foreign investors flee the dollar and the US government bond market.

I almost wish I had no money in my brokerage account or my banking accounts right now and just had a closet full of gold bullion. One could sell everyone one has and put it in gold and not have to worry about a thing right now. But of course gold stocks will go up huge over the next 6-8 months so there is more money to be made in them. I’ll just have to buy the next pullback or 1-2 week period of consolidation in them and get on board that ride. But at some point it will be prudent to take profits and move the money into pure gold or a foreign currency as I fear that the dollar could actually become worthless when Bernanke’s is done.

Look even Bloomberg has a headline that states “FOMC now stands for Friend of Market Committee” on their website this morning.

Here are some more must read reactions:

Billionaire Jim Rogers before the rate cut in a must see Bloomberg video:

““Every time the Fed turns around to save its friends on Wall Street, it makes the situation worse if Bernanke starts running those printing presses even faster than he’s doing already, yes we are going to have a serious recession. The dollar’s going to collapse, the bond market’s going to collapse. There’s going to be a lot of problems in the U.S.”

In an article on Frank Barbera writes:

“Forget about any ‘Moral Hazard,’ and forget about the purchasing power of those hard earned Dollars. Clearly, that is the message that the Fed is sending to the International community with today’s action. A shocking, potentially reckless move, where will the Bid be found on the greenback, and at what point will foreigners decide that a 4.48% yield on a 10 year Bond doesn’t cover the bet? (Heck, it ticked up a whole basis point today.) Only time will tell, but for now, the Fed’s stark message seems to be re-inflate at all costs. In pursuing this arguably high-risk path, the Fed is opening the door to a potential Pandora’s Box. Conspiracy theorists may argue that Central Banks are working together, and that despite a lower value for the Greenback, foreign money will continue to be recycled into US Dollars. Yet, what if that is wrong? What if foreign money decides to flee the Dollar market? In that reality, this high stakes gambit by the Fed could blow up in its face, as exiting foreign capital hammers the Dollar and begins to send long term rates sharply higher. At that point, we face a melt down, as rising long term rates would be another nail in the coffin for the US Residential Market, and could continue to generate chaos in credit markets. A marked departure from the Greenspan gradualism, the Fed appears to be leaving its equilibrium at the political alter of an election year, and at the special interest alter of Wall Street investment banks. How ironic that if presumed foreign cooperation is renounced, the Fed could end up standing alone in a long suffering melt down. Looking back at past interest rate cutting cycles, we see that the trend in the US Dollar has not been anything but ugly. Now, with the US Dollar on the verge of all time record lows against most major currencies, is it possible that today’s aggressive rate cut will be seen as anything but an Admiral Farragut style “Damn the torpedoes, full speed ahead” decree of a global “we don’t care” weak dollar policy?”

The Fed lowered interest rates with the DOW only 1.7% off of its highs. How low will they lower interest rates if the economy continues to slowdown and real estate prices don’t rebound? When will it end? We know the trend now. It is clear what the macro picture has become – the Fed is going to print money like mad and inflation is going to explode. You buy gold, gold stocks, and other commodity stocks to profit from that trend. And at the same time you pray that the trend doesn’t run to its final destination.

Everytime that Fed has lowered interest to bail out a segment of the financial markets it has created another financial bubble somewhere else until that bubble had a blow off stage and collapse of its own. When Greenspan lowered rates in 1998 to bail out Long-Term Capital a bubble in tech stocks formed the next year. When that bubble burst in 2000 and he lowered rates to stop the carnage he created a bubble in housing prices. That bubble ended a year ago and when banking problems and the collapse of mortgage securities hit the market as a result in the past six weeks Bernanke lowered rates.

The next bubble to come appears to be gold, commodities, and inflation. If that bubble runs it course and has a blow-off stage it will end with the collapse of the dollar and a panic on the part of foreign investors when it comes to anyone holding US debt and dollars. We may have a time over the next couple of months in which the stock market goes up in dramatic fashion, but at the end game anyone holding their savings and assets in US dollars will be wiped out.

The Fed signaled yesterday that it is willing to take that risk in order to save a bunch of Wall Street banks and hedge funds. Welcome to socialism for the rich. If the dollar goes to nothing hundreds of millions of people will lose their saving to bail out a few Wall Street bankers. It will one of the greatest transfers of wealth in history of money from the poor to the rich.


Greenspan Working To Destroy US Economy

Greenspan Working To Destroy US Economy
Puppets of the elite posing as saviors once again

Steve Watson & Alex Jones Editorial
September 18, 2007

Over the past few days Alan Greenspan has appeared in every major financial publication to explain exactly what is going to happen to the economy and what the next steps should be, while also deriding the Neocon administration for the current downturn. For this he has been lauded as some form of economic savior, yet a cursory examination of the facts reveals that the economic decline has long been in the pipeline and Greenspan and his ilk operate under the influence of those who continue to engineer the slow meltdown.

Alan Greenspan and Paul Volker, both former Federal Reserve Chairmen, along with current chairman Edward Bernanke, the Treasury Secretary Henry Paulson and Alistair Darling, Exchequer of the Treasury in England have been out in unison since last Friday announcing over and over that the economy is going to implode, there is going to be serious inflation, housing is going to go down between ten and thirty percent, and the Dollar is going to be replaced with the Euro.

With the effects of the credit crunch hitting more and more lower level lenders, it is clear to see that the fallout is spreading and propagating a general decline. We are seeing the unfolding of an overall meltdown that represents a gutting of the United States by neo-mercantilist institutions bent on the formation of a new global monopoly.

We are witnessing the unfolding of a crash exactly as predicted by Former World Bank Vice President, Chief Economist and Nobel Prize winner Joseph Stiglitz this time last year.

Stiglitz agreed that the process of hijacking and looting key infrastructure on the part of the IMF and World Bank, as an offshoot of predatory globalization, has now moved from the third world to Europe, the United States and Canada.

Stiglitz warned that the signs were there with plummeting real estate prices in the U.S., stating that a global economic depression could only be avoided if a correction was made.

But no correction will be made because the World Bank/IMF/Globalist doctrine betrays a focused agenda to deliberately foment economic turmoil, riots, and then enforced bondage to eternal debt. We have witnessed this time and time again, their own documents even confirm this as the chosen method of social control.

The shareholders of Federal Reserve, part of the same group of elite families that owns the bank of England, created the IMF and World bank to siphon government funds. Then they effectively steal the real assets of the third world countries that take their loans in some cases at 42% interest. These global loan sharks secure the water, power and roads which are then handed over to private, piratical, letter of mark companies.

The heads of such companies, together with the central banks come together within elite institutions such as the Bilderberg group to pull together their policies and discuss how to proceed.

Bilderberg have sworn to bring about what Jose Barroso, President of the European Commission and a Bilderberg member, refers to as the “post-industrial revolution,” which in layman’s terms translates as a global economic crash, another great depression and the total evisceration of the middle class. They are intent on achieving this by ensuring oil prices soar via a combination of conflict in the middle east and encouraging fears over peak oil.

At the 2005 Bilderberg meeting sources inside the group told reporters Daniel Estulin and Jim Tucker, who have built up a credible reputation for accurately forecasting future events based on leaks from Bilderberg conferences, that the elite wanted to consolidate by bringing down the standard of living in the US and Europe, fearing that the middle class is out of control and has been granted too much credit which must be offset by a phase of consolidation.

We now see figures like Alan Greenspan re-iterating the exact same mantra, that there has been too much “irrational exuberance”.

Greenspan is now being lauded for doing the job of publicly destroying confidence in the dollar, publicly trying to destroy confidence in the banks, and publicly trying to destroy the economy, enabling a consolidation during a recession as set out exactly in globalist blueprints.

500 billion globally has been pumped in not to save the markets, but to ensure a slow, gradual, non-panic inducing decline.

It is disgusting to see the very people, the elite central bankers that the founding fathers of the U.S. fought against, the very veracious criminals that took over the economy and bankrupted the country, present themselves as salvation.

It was the banks that issued the credit, the banks that overprinted the money and the banks that sent credit cards to 17 year old high school graduates. When the elite start positioning themselves, blaming the fallout of their own actions on scapegoats and posing as our guardians, alarm bells should be ringing.

Two and a half years ago they tried to pop the real estate bubble, a year and a half ago they tried again, and this year they have succeeded. While allowing credit to continue, the central banks had the larger institutions stop buying paper securities, now that has caused a major restriction in the issuance of credit. They are not the saviors, they are the perpetrators.

The crisis is an engineered one on behalf of a global elite who have long pushed for increased regionalization, a single currency and a market they can monopolize more effectively.

Listen to Alex Jones’ impassioned rant on this topic here.


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Economic Expert: We Are Already In An Engineered Recession

Economic Expert: We Are Already In An Engineered Recession
50% chance there is going to be a 1929 style economic depression as pretext for regionalization, globalist interests

Steve Watson
August 15
, 2007


Alex Jones was joined on air yesterday by investigative journalist, economic expert and Harvard Doctor of Political Science Jerome Corsi for an in depth discussion on the state of the economy and the engineered decline towards regionalization and a globalized monetary system.

Corsi warned that the crisis in the stock market we are currently witnessing is simply the tip of the iceberg and part of an overall meltdown that represents a gutting of the United States by neo-mercantilist institutions bent on the formation of a new global monopoly.

“We’re gonna go through Stagflation, which is basically stagnation and inflation. We are already in a recession, it just hasn’t been publicly declared yet. I think it will deepen through the rest of 2007 into 2008. Corsi stated.

“It’s going to last several years, it’s largely because we’ve lost so much of the manufacturing to China, even when our currency tanks, there are no exports we are producing anymore that will gain. The currency is gone, it is being sold off very quietly, worldwide, by the oil producing states, by China, the Euro is increasingly becoming our foreign exchange reserve currency.

The primary indices of inflation have been taken out of the indexes, food is not in and neither is energy prices. These two are going up hugely right now and are going to continue to go up.”

Corsi warned that this is going to be the formula for producing the Amero, a continental solution to the tanking of the Dollar.

Listen to the entire eye opening interview here.

Last September Corsi received the first documents pertaining to a FOIA request asking for full disclosure of activities towards creating a Pan American Union.

The documents show that a wide range of US administrative law is being re-written in stealth under the Security and Prosperity Partnership program to “integrate” and “harmonize” with administrative law in Mexico and Canada, just as has become commonplace within the EU.

The documents contain references to upwards of 13 working groups within an entire organized infrastructure that has drawn from officials within most areas of administrative government including U.S. departments of State, Homeland Security, Commerce, Treasury, Agriculture, Transportation, Energy, Health and Human Services, and the office of the U.S. Trade Representative.

Corsi also reported that at a recent high-level confab in Banff, an assistant U.S. secretary of state, Thomas A. Shannon , chaired a panel that featured a presentation by Prof. Robert Pastor, author of a book promoting the development of a North American union as a regional government and the adoption of the Amero as a common monetary currency to replace the dollar and the peso.

Just a conspiracy theory? Not according to leading economists such as Steve Previs of Jefferies International who stated on CNBC, “I think one thing for people who are dollar based need to focus on is the Amero, that’s the one thing that nobody is talking about that I think is going to have a big impact… on everybody’s life in Canada, the U.S. and Mexico…”

A global crash and a totally devalued dollar that can barely rival the peso are greasing the skids for a single North American currency. This spells disaster for all Americans who wish to maintain their standard of living and not find themselves barefoot on the street in a bread queue.

Corsi went on to forecast a five to seven year deep recession:

“We will not recover from this for at least five years. If people think that housing values are dropped today it’s nothing, housing values are going to go down fifty percent or more from the peak. We’re going to come to a point when condominiums in certain markets are worthless.

It’s not that there won’t be buyers out there, there just won’t be credit for them. You’re going to have a credit crunch now, where even if you’re qualified you’re going to have to have 20% down and even then you might have a hard time getting a loan at a reasonable rate for a house.”

Corsi urged anyone in the position to do so to quickly pay off any mortgages and get out of debt. Secondly he suggests investment in gold, rather than stocks and bonds which are based on fiat money and are going to decline tremendously in value:

“The derivative market could be a 450 trillion worldwide market that is going to collapse. Just in the hedge funds alone in the United States, and in the mortgage market there is between 3 and 5 trillion dollars of debt that is going to collapse. That means three to five trillion dollars of losses. Somebody is going to have to absorb that and the reason that the federal reserve is throwing out so much money into bank reserves is because we would’ve already had bank failures.”

Dr Corsi also warned against the school of thought that says if you get a bigger mortgage, as long as you have savings to pay for it, you can accelerate the pay off of it with inflation. He stressed that unless you have a long term fixed rate mortgage and you fully understand the terms of your contract you could at any point be subject to a change in terms and the loan could be called in:

“There is going to be a grab on this property by people who have cash, and that’s not going to be the middle class. People will lose their homes if they have large mortgages that they cannot comfortably sustain or pay off.

There’s going to be a grab where the institutions and the people already wealthy will only gain, it’s not going to be an opportunity for the average person to gain.”

Corsi also asserted that the ongoing meltdown is a global one and it is going to be very severe, forcing regionalization and providing the impetus to saying harmonization of national economies is the only way we can handle this coming huge recession.

Dr Corsi firmly believes that the crisis is an engineered one on behalf of a global elite who have long pushed for a regionalization, a single currency and a market they can monopolize more effectively:

“It is engineered because again, the move toward globalism, the pumping of this liquidity to stimulate the markets was totally artificial. The federal reserve is going to get caught right now in a total dilemma, if it raises rates to protect the dollar, its going to further tank the economy and cause the housing markets to be in even more of a crisis. We have economic stagnation, the loss of real income, the loss of real wealth and inflation at the same time. With the dropping of the dollar the crisis is going to be manipulated to the point where people will take the Amero or any regional solution if it is proposed as the way you get out of your problem.”

He further warned that the 400 billion injected into the stock markets last week is merely a temporary measure to slow down and control an overall meltdown and was only done to prevent a sudden massive crash. mirroring the analysis of the Financial Times of London and former World Bank chief economist Joseph Stiglitz Corsi stated that he sees no way to stop the meltdown, the only doubt left is whether it is going to be a fast or slow process.

He also believes there is an even money chance that there could be a huge 1929 style economic depression:

“This is the fastest run I’ve seen ever to get to the goal line of creating a Untied States regional economy, a North American Union. The elite are running like they’ll never have this chance again. It is the tenth hour, the eleventh hour where this battle will be fought. They believe that they can win now and they are going for broke to create a North American Union and tank the dollar.”

The decline of the economy in the US is being caused by the very predatory globalist policies that are still presented to us as the solution for economic turmoil. Globalist vampires such as the IMF and the World bank, but two of the elite central banks and private interests, have drained the third world dry, and are now focusing their attention on enslaving the developed world.

The single currency and a ‘new economic order’ is a major step on the road to global governance. Europe already has its own strong single currency, while the dollar’s days seem to be numbered. When money is being printed and distributed by private corporations is it any surprise to see a push for a merger with other countries’ currencies?

Talk has long been of a global currency by 2018 if plans go accordingly. A 1988 famous cover of The Economist emphasized this, depicting a phoenix standing atop burning paper money symbolizing its rise out of their destruction, with the words “Get ready for a world currency” next to it.

..start–> The article carried in The Economist, titled “Get Ready for the Phoenix,” stated that, “THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency.”

The article went on to state that sovereignty will be lost with the advent of the new currency, but that trends towards globalization are already doing away with it anyway.

The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF. The world inflation rate – and hence, within narrow margins, each national inflation rate- would be in its charge. Each country could use taxes and public spending to offset temporary falls in demand, but it would have to borrow rather than print money to finance its budget deficit. With no recourse to the inflation tax, governments and their creditors would be forced to judge their borrowing and lending plans more carefully than they do today. This means a big loss of economic sovereignty, but the trends that make the phoenix so appealing are taking that sovereignty away in any case. Even in a world of more-or-less floating exchange rates, individual governments have seen their policy independence checked by an unfriendly outside world.

“Pencil in the phoenix for around 2018, and welcome it when it comes,” the article concludes.

In 2004 Robert Mundell, the Nobel-prize winning economist often credited with paving the way to the European single currency, called for a global currency.

In an interview with French paper Libération, Mundell said: “With the emergence of the euro and its instability against the dollar, Europe, the United States and the Asian powers should come together and create a new international monetary system.”

In 2006 the scandal-ridden and highly secretive Bank For International Settlements, considered to be the world’s top central banking policy, released a policy paper that called for the end of national currencies in favor of a global model of currency formats.

The BIS is a branch of the of the Bretton-Woods International Financial architecture and closely allied with the Bilderberg Group. It is controlled by an inner elite that represents all the world’s major central banking institutions. John Maynard Keynes, perhaps the most influential economist of all time, wanted it closed down as it was used to launder money for the Nazis in World War II.

It appears we are now seeing the slow realization of a global economic system with a single currency.

The end game of such regionalizing harmonization is of course a global government.

It has long been recognized that an instant world government would be roundly rejected by the masses and that a stepping stone agenda, a stealth implementation of a new global order is the key to its success.

Writing in the April 1974 issue of Foreign Affairs, the flagship publication of the Council on Foreign Relations (CFR), Richard N. Gardner , who has held a number of State Department posts, argued against what he called “instant world government.” Instead, he wrote, “the ‘house of world order’ will have to be built from the bottom up rather than from the top down. It will look like a great ‘booming, buzzing confusion,’ to use William James’ famous description of reality, but an end run around national sovereignty, eroding it piece by piece, will accomplish much more than the old-fashioned frontal assault.”

In a similar sentiment, former National Security Adviser and co-founder of the Trilateral Commission, Zbigniew Brzezinski pointed to “regionalization” as the key for “globalization” in his address to Gorbechev’s State of the World Forum in October 1995: “The precondition for eventual globalization — genuine globalization — is progressive regionalization, because thereby we move toward larger, more stable, more cooperative units.”

Last May the first steps towards the biggest “cooperative unit” there has ever been were cemented with the groundwork being set for a EU-US single market. However, as the CFR would say, amidst the “booming, buzzing confusion” few have noticed.

Jerome Corsi concluded by re-iterating that the economic crisis has been manufactured in order to provide the pre-scripted neo-mercantilist solution:

“We’d never get rid of the sovereignty of the United States or the dollar unless there was a crisis. The Council on Foreign Relations, two issues ago Ben Steel one of their top economists wrote an article openly declaring that national monetary systems were dead and that we need to go to regional moneys and that we need to go to global moneys. We are going to be told very quickly that the only way the federal government can protect us is if we allow the federal government to become a North American government.”

What is the ‘North American Union’?