Saturday, December 13, 2008

The New World Order by convincing teenager!

by Norman E. Hooben
Warning after warning and I get no respect...no empathy, no nothing! Just pure ignorance and complacency! And you wonder why we're in so much trouble...because so many Americans are uninformed, misled, and brainwashed!

This country, our good ole U. S. of A. is about to collapse...Do you care? Do you want to save this once magnificent country? Or would you rather live in a Dictatorship under the world's most corrupt organization...The United Nations! All these things are about to happen...gone will be your flag, your dollar, and your freedom (we've already lost most freedoms). There are some things you can do and I'll point some of those out later. But first I want you to listen to a high school student who knows as much of what is going on as I...only maybe this time you will place some credence in what I have been harping about for years...so many years, I've lost count.

First let's listen to Robert Wanek, a teenager from Minnesota...

The following from Restore The Republic Magazine:



Why don’t you ask Robert Wanek from We Are Change Minnesota.
He will tell you yes, there is a New World Order my school book tells me so!

Now that we have listened to Robert lets recall some events I've spoken about for many years. These are but a token of items published by D. L Cuddy, PHD under the title, "A Chronological History Of The new World Order ". Pay close attention to that which is being said about education. Remember there are many of us, me included, that grew up without a Department of Education...and we all turned out pretty good without them. "Them" as you know are Humanists and Socialists. They infect the halls of government and will not cease until they have complete control...lets read a few of Dr. Cuddy's observations. See how these events unfolded over the years (i.e. We now have a Dictatorial Department of Education).

1931 -- In a speech to the Institute for the Study of International Affairs at Copenhagen) historian Arnold Toyee said:

"We are at present working discreetly with all our might to wrest this mysterious force called sovereignty out of the clutches of the local nation states of the world. All the time we are denying with our lips what we are doing with our hands...." (Note from Norm: This is exactly what the Clintons and Obama do so well.)

1932 -- New books are published urging World Order:

Toward Soviet America by William Z. Foster. Head of the Communist Party USA, Foster indicates that a National Department of Education would be one of the means used to develop a new socialist society in the U.S. (Side Note: Foster was born in my hometown, Taunton, Massachusetts...looks like he got his wish, the US Dept of Education did not exist in his time nor my school years.)

The New World Order by F.S. Marvin, describing the League of Nations as the first attempt at a New World Order. Marvin says, "nationality must rank below the claims of mankind as a whole." (Note from Norm: This is why Obama won't wear the flag pin and why he shows disrespect for both the flag and National Anthem. He only started wearing the flag pin in order to appease his critics...and to get elected! Remember this about Obama [ and the Clintons, et al ], these people do not have one drop of patriotic blood in their veins...even if Bill O'Reilly says otherwise...O'Reilly is quite naive when it comes to these matters. Always refer back to this: "All the time we are denying with our lips what we are doing with our hands...")

Dare the School Build a New Social Order? is published. Educator author George Counts asserts that:

"... the teachers should deliberately reach for power and then make the most of their conquest" in order to "influence the social attitudes, ideals and behavior of the coming generation... The growth of science and technology has carried us into a new age where ignorance must be replaced by knowledge, competition by cooperation, trust in Providence by careful planning and private capitalism by some form of social economy." (Note from Norm: Is this what Robert is trying to warn us about?)

1933 -- The first Humanist Manifesto is published. Co-author John Dewey, the noted philosopher and educator, calls for a synthesizing of all religions and "a socialized and cooperative economic order." Co-signer C.F. Potter said in 1930:

"Education is thus a most powerful ally of humanism, and every American public school is a school of humanism. What can the theistic Sunday schools, meeting for an hour once a week, teaching only a fraction of the children, do to stem the tide of a five-day program of humanistic teaching?" (Note from Norm: Scary huh!)

1933 -- The Shape of Things to Come by H.G. Wells is published. Wells predicts a second world war around 1940, originating from a German-Polish dispute. After 1945 there would be an increasing lack of public safety in "criminally infected" areas. The plan for the "Modern World-State" would succeed on its third attempt (about 1980), and come out of something that occurred in Basra, Iraq. The book also states,

"Although world government had been plainly coming for some years, although it had been endlessly feared and murmured against, it found no opposition prepared anywhere."

1934 -- The Externalization of the Hierarchy by Alice A. Bailey is published. Bailey is an occultist, whose works are channeled from a spirit guide, the Tibetan Master [demon spirit] Djwahl Kuhl. Bailey uses the phrase "points of light" in connection with a "New Group of World Servers" and claims that 1934 marks the beginning of "the organizing of the men and women... group work of a new order... [with] progress defined by service... the world of the Brotherhood... the Forces of Light... [and] out of the spoliation of all existing culture and civilization, the new world order must be built."

The book is published by the Lucis Trust, incorporated originally in New York as the Lucifer Publishing Company. Lucis Trust is a United Nations NGO and has been a major player at the recent U.N. summits. Later Assistant Secretary General of the U.N. Robert Mueller would credit the creation of his World Core Curriculum for education to the underlying teachings of Djwahl Kuhl via Alice Bailey's writings on the subject.

1932 -- Plan for Peace by American Birth Control League founder Margaret Sanger (1921) is published. She calls for coercive sterilization, mandatory segregation, and rehabilitative concentration camps for all "dysgenic stocks" including Blacks, Hispanics, American Indians and Catholics. (Note from Norm: Are you of a dysgenic stock? I am among the listed! ...sorry, I don't want to end up in a rehab concentration camp!)

October 28, 1939 -- In an address by John Foster Dulles, later U.S. Secretary of State, he proposes that America lead the transition to a new order of less independent, semi-sovereign states bound together by a league or federal union.

1939 -- New World Order by H. G. Wells proposes a collectivist one-world state"' or "new world order" comprised of "socialist democracies." He advocates "universal conscription for service" and declares that "nationalist individualism... is the world's disease." He continues:

"The manifest necessity for some collective world control to eliminate warfare and the less generally admitted necessity for a collective control of the economic and biological life of mankind, are aspects of one and the same process." He proposes that this be accomplished through "universal law" and propaganda (or education)."

1940 -- The New World Order is published by the Carnegie Endowment for International Peace and contains a select list of references on regional and world federation, together with some special plans for world order after the war.

December 12, 1940 -- In The Congressional Record an article entitled A New World Order John G. Alexander calls for a world federation.

1942 -- The leftist Institute of Pacific Relations publishes Post War Worlds by P.E. Corbett:

"World government is the ultimate aim... It must be recognized that the law of nations takes precedence over national law... The process will have to be assisted by the deletion of the nationalistic material employed in educational textbooks and its replacement by material explaining the benefits of wiser association."

June 28, 1945 -- President Truman endorses world government in a speech:

"It will be just as easy for nations to get along in a republic of the world as it is for us to get along in a republic of the United States."

October 24, 1945 -- The United Nations Charter becomes effective. Also on October 24, Senator Glen Taylor (D-Idaho) introduces Senate Resolution 183 calling upon the U.S. Senate to go on record as favoring creation of a world republic including an international police force.

1946 -- Alger Hiss is elected President of the Carnegie Endowment for International Peace. Hiss holds this office until 1949. Early in 1950, he is convicted of perjury and sentenced to prison after a sensational trial and Congressional hearing in which Whittaker Chambers, a former senior editor of Time, testifies that Hiss was a member of his Communist Party cell.

1946 -- The Teacher and World Government by former editor of the NEA Journal (National Education Association) Joy Elmer Morgan is published. He says:

"In the struggle to establish an adequate world government, the teacher... can do much to prepare the hearts and minds of children for global understanding and cooperation... At the very heart of all the agencies which will assure the coming of world government must stand the school, the teacher, and the organized profession."

1947 -- The American Education Fellowship, formerly the Progressive Education Association, organized by John Dewey, calls for the:

"... establishment of a genuine world order, an order in which national sovereignty is subordinate to world authority... " (Note from Norm: Read that again...Do I hear United Nations? )

October, 1947 -- NEA Associate Secretary William Carr writes in the NEA Journal that teachers should:

"... teach about the various proposals that have been made for the strengthening of the United Nations and the establishment of a world citizenship and world government." (Note from Norm: Sounds like Robert has discovered this.)

Now this isn't near the quantity of material I have presented over the years but you may want to review some of the other videos I have presented here LOST LOST --- Wake Up America and here WAKE UP AMERICA or kiss your country good-bye !!!

Now, what do we do about all this? Well we could put out a call for the apprehension and arrest of Bill Clinton, George Bush, Jimmy Carter, Henry Kissinger, Barack Obama, Ted Kennedy, John Kerry, Nancy Pelolsi, Harry Reid, John Murtha, Colin Powell, the 3,000 plus members of the CFR and all the members of the Tri-Lateral Commission...and the list goes on. But we know that's not going to happen, especially with the Justice Department and various Judicial appointments filled with Clinton cronies...c'mon now, don't tell me you haven't heard of the 9th Circuit Court of Appeals...you know, the God out of everything crowd.

First you have to think back a little in our recent history. Remember a guy that went by the name of Hitler? We fought a very long war to rid this would be ONE WORLD leader from the power struggle to control the world. So why is it any different from now when the Hitlers are amongst us? Do we as Americans have the right to control the world as Hitler wanted? I would hope not!

Next, if we last long enough, the only peaceful way to rid us of this cancer is to vote out every single member of the politic elite even if it means voting against your favorite party. You have to forget "Democrats and Republicans", for it is those very people that we elect that create the problems. Starting at the grass roots level you must elect patriotic Americans rich or poor...preferably poor and with no influence by the teachings of such notables as Saul Alinsky (the Clintons and Obama's favorites). Stop supporting party politics. It's gets us nowhere but more rules and regulations...we want to be free! Remember that!

The election process has gotten very corrupt over the years as I myself witnessed as a poll watcher in 2006. So putting honest people in charge of the polls is a first step. Forget about getting your cousin Bubba or sister Jane elected to some hack position for financial gain...unless of course they are legitimate candidates and not associated with any political party...you got to get rid of the parties! I cannot emphasize this enough. Elect individuals based on character not party affiliation! For all you die-hard party members remember this: "The definition of insanity is when you keep doing the same thing over and over again and expecting different results." Have you been guilty of this? Think about it. What politician that you voted for has had a direct result in your good fortune or standard of living? More than likely they have increased your cost of living if for no other reason, raised your taxes. By the way, Obama will raise your taxes!

Well I said earlier we must get rid of the parties and that's true. But here I'm speaking of the Democrats and the Republicans, with the Democrats being the most dangerous concerning our national sovereignty. (Note: One of the biggest reasons they wanted that Georgia seat in the Senate was for ratification of the Law Of The Sea Treaty [LOST]...a definite end of our sovereignty and you could kiss your red, white, and blue goodbye and live under that blue rag of the UN!). There are other parties out there and I'm not recommending any of them at this point...think for yourself, but think 'Capitalism and Conservatism' it works!

With all that said there is only one other alternative...REVOLUTION! And I'm sorry to say at this point, I see it coming! And it's coming fast!

Let me leave you with one final quote (as if I hadn't left you this one before. but this time when you read it think Clinton-Obama-Bush...and all the others mentioned above.)

"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies in the heart of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murder is less to fear.

The traitor is the plague..." Marcus Tullius Cicero, speech to the Roman Senate.

Computer Problems? - I Understand Your Frustrations

video

H-T to F. Boutin

An Open Letter to the Electoral College

Cross posted from Do The Right Thing

Open Letter to the Electoral College

Cross posted from Take Our Country Back.

By Ben

Ladies and gentlemen, as electors, you are charged with the duty of selecting a President to preside over the executive affairs of this nation for the ensuing four years.

The peculiar institution whose powers you will exercise on December 15 was intended to avoid both the intrigues & cabals involved in election by the legislature and the impulsive passions & ignorance to which popular election would be subject. Your office results from one of the most important compromises made by the Constitutional Convention.

The present circumstances bring an enhancement to the gravity of the responsibility of your office. Inadequate vetting & journalistic scrutiny of one charismatic candidate have joined with a popular fervor for his candidacy resulting in a majority popular vote for one:

whose policy positions are ambiguous
who encouraged the voters to make unfounded assumptions that he would grant them impossible benefits
whose alliances with racists, domestic terrorists & supporters of international terrorism bring his judgment into question

whose alliance with a convicted felon and indicted Governor bring his morality under a dark shadow of suspicion

whose apparent acceptance of illegal foreign campaign contributions brings the legitimacy of his campaign under question

whose agents met with officers of a terrorist group at war with our ally in apparent violation of the Logan Act

and whose refusal to produce authentic documentation of his having been born in this country brings his eligibility under question.
At a time when our nation is at war on two foreign battlefronts, challenged by a resurgent Russia and threatened by Iran's approaching ascension to nuclear armament, we need a President whose judgment and integrity are unquestioned.

At a time when our economy and that of the world are turning downward, through recession toward depression, we need a President who is free from the taint of scandal, able to act decisively and lead; not subject to the water torture of drips & dribbles of facts from the investigation & trial of his political ally.

This is the occasion for which your office was created; a time when popular passion & ignorance resulted in the selection of an unqualified person neither worthy nor well prepared for the duties of high office when our nation is at peril on multiple fronts.

As a citizen, I therefore challenge you to be true and faithful to the oath of office you have sworn and give ample consideration to the security, welfare, prosperity & happiness of this nation by rejecting the error of popular impulse and electing the McCain / Palin slate in its stead.
_________________________________________________________________________________________________________________

To our international visitors: please leave a comment advising us of the reason for your interest in this esoteric subject matter.

To our American activist readership: dbsolo alerted me by email to the existence of a chatroom which has posted contact information for the Electors.

This link is to the Michigan page
: Michigan Electors

Democratic Disaster has more interesting information for your education & enjoyment, it is well worth a visit.

Required Viewing - The Bailout - All the reading, all the writing, whatever...can be summarized in this short video.

Wanda, The Only Celebrity Who Has Her Head On Straight

video

The Morning Paper

The Heart of Blago

By Rich Lowry

When Franklin Roosevelt was pounding on the evils of business at the height of the New Deal, the great economist John Maynard Keynes tried to pull him back: "It is a mistake to think businessmen are more immoral than politicians."

At a time when the titans of American finance have become synonymous in the public mind with recklessness and greed, here comes Illinois governor Rod (F***ing) Blagojevich to confirm Keynes' long-ago wisdom. His contribution to the contemporary political lexicon is to have made the unnamed, numerated potential U.S. Senate appointees in the complaint against him sound as dirty as the unnamed johns in the Eliot Spitzer case -- is it worse to be Senate Candidate 5 or Client 9? Read more...

Short & Sweet History's Little Wake Up Calls

Excerpts From Hillsdale: (Imprimuis)

"...One imagines that there is plenty of greed on Wall Street. Greed is a moral vice, a failure of justice involving taking more than one's due. To eliminate greed would surely be a fine thing, as would the elimination of any vice. It would also be an astonishing achievement...."

"...I mention the art of constitutional government. I mean simply the art that provides good laws directed to encouraging free people to govern themselves. The national defense, secured so well as human contrivance can secure it, has a high place in this art. So too does the provision of a stable currency. So too does the protection of property and contracts. So too does the maintenance of a tax burden that does not stifle labor, savings, and investment...."

"...The interest of the man must be connected with the constitutional rights of the place." In other words, we must build our political institutions to operate around the problem of human vice, to mitigate that problem by discouraging vice, but also to place our interests in alignment with the public interest. "Liberty," writes Madison, "is to faction what air is to fire."..." Read more...

From Smart Girl Politics

"...Is it really that surprising that a crooked politician from a crooked political town was arrested today for corruption. It does not shock me that Governor Blagojevich was arrested. It shocks me that people were shocked by the news. .." Read more...

From Extreme Wisdom : "Obama “jumping the shark” on Global Warming"

"...The collapsing case for “man made global warming” ought to make Saint Obama think twice about using the word “denial.”..." Read more...

From Radarsite : Blagoyevich-Why was the case terminated?


"...First of all, rest assured that US Attorney Patrick Fitzgerald did not act unilaterally in deciding to indict Blagoyevich when he did. Nor did he act unilaterally in his decision to authorize an application for a Title 3 (phone intercept) on the Governor. In sensitive cases involving prominent political figures, the US Attorney's Office must coordinate with Main Justice in Washington. This case, with all its obvious implications, would surely have fit into this category...." Read more...

From the BBC : Blair explains Catholicism move

"...Christian values

Mr Blair argued some people would have found it comforting to think the person leading them had some sense of "spiritual value".

He said: "It's sad in a way that people feel you can't talk about something that is important to who you are...." Read more...


And although I read it yesterday in e-mail format, lets not escape this one from Snooper's "Take Our Country Back" - The Liberal Pathology

"...True American Patriotism cannot dwell in the Liberal Mind, the Liberal Heart or the Liberal Soul. It does not compute. American Liberalism has morphed into all left-leaning forms of government dogma and the only thing that matters is The State and the people are a convenient nuisance and at times an inconvenient nuisance. True American Patriotism grants governance by consent and allows government to exist to provide law and order at the behest of the people. That is why American Liberalism opposes the US Constitution in actions and deeds but they decry that they are the Constitution Watch Dogs. And fools fall for it because they are without wit and are void of understanding...." Read more...

Friday, December 12, 2008

We Now Prohibit You...that's right, YOU! Things were bad once and they'll get bad again!

"Peter Schiff Was Right" ...Sorry Peter, I've out done ya!

While perusing around cyber space looking for something that has taken the back seat for the moment, I came across the video below. The headline read, " Peter Schiff Was Right 2006 - 2007 (2nd Edition) " (Also here ). Now I'm not one to vaunt over things but sometimes one just has to have some bragging rights to set the record straight. Now mind you, I'm not claiming any "firsts" or new discoveries. Many other like minded individuals could also stake claim to such readily available knowledge. One such person is William Jefferson Clinton. Ole Slick Willy knew exactly what he was doing...Break The Banks! And all this would take time. The time he knew would be on George Bush's watch...and therefor the blame game.
With that said (no need to go into Clinton's New World Order reasons here.) my little ole brain knew that I must have wrote to somebody about all these goings on for that would be my only proof of topping Mr. Schiff's claim to fame. Sure 'nough, there it was in me ole archives, my little note to Frank back in the year 2000. In fact it was filed in October of that year on my wife's birthday. Now the note was not dated so how was I going to prove it ran ahead of Schiff's. "Properties!"
Each file has a 'properties' identifier lets you know when the document was created...there it was...

Hey Peter, if you happen to browse by this blogsite, how 'bout given Storm'n Norm'n a little hat tip.

Watch the video then read my note to Frank written several years before Peter knew what was going on.


Now remember Pete Schiff was right in 2006 and poor ole Storm'n Norm'n was right on in the year 2000!

Hey Frank…you’re all wet!

You may recall that when President Clinton signed the Community Re-investment Act (CRA) sometime in the late 1990’s (I think it was around 1998) that this opened the door that Jimmy Carter unlocked during his anti-redlining years. All of this Socialist legislation by these Liberal, (I don’t know what to call them…) blanket-blanks will most likely create some kind of spurt in the real estate/housing markets (which I believe is already under way). But what’s going to happen when these folks who have been legislated the opportunity to own their own homes suddenly can no longer make the payments…

Notice that I said, “legislated” for whatever happened to so-called rugged individualism and making it on your own self determination…maybe they’ll legislate jobs and earnings just so as they can keep up the payments. Meanwhile, keep those house payments going…your contributions are keeping the mortgage companies afloat…but the ship is sinking!

Norm

"For the good of the country, we must all hope this scandal doesn't infect anyone in the new administration." Infect! They're all already poisoned!

Troubling Questions For Obama Team
By Linda Chavez
December 12, 2008

A corruption scandal in President-elect Obama's backyard is the last thing this country needs. But like it or not, that's exactly what we have in the unfolding drama of Illinois Gov. Rod Blagojevich's arrest earlier this week for trying to sell Barack Obama's Senate seat. The federal prosecutor in the case -- Patrick Fitzgerald, the man whose investigation of the Valerie Plame leak case nearly paralyzed the Bush White House for a time -- has made it clear that nothing ties Obama directly to the Blagojevich scheme. But the timing of Fitzgerald's announcement raises some serious questions.

Apparently, Fitzgerald knew that Blagojevich was trolling for bidders for the Obama seat in the waning days of the general election. Before the first votes were counted to elect Obama president, Blagojevich was so confident in Obama's victory he was already soliciting bids for the seat. And Fitzgerald already had substantial evidence that Blagojevich was engaged in major corruption before the governor put a "for sale" sign on the Senate seat. So why didn't the federal prosecutor act prior to the election? Had he done so, of course, it could have damaged Obama.

Many would argue that bringing down another Illinois Democrat before the election would have smelled like a dirty trick. The federal prosecutor, after all, was a Republican appointee, and the McCain campaign had already run ads trying to tie Obama to political corruption in Chicago. One of Obama's early financial supporters, land developer Tony Rezko, was convicted on corruption charges earlier this year, and Rezko figures prominently in the Blagojevich scandal. Had Blagojevich been forced to do a perp walk before Election Day, voters might have asked why Obama had endorsed Blagojevich just two years earlier, considering the governor was at that time under investigation for taking bribes. The endorsement would have been yet another example of Obama's bad judgment in his associations from Rezko to the Rev. Wright to Bill Ayers.

But even if Fitzgerald acted fairly and prudently by not moving against Blagojevich in the heat of a political campaign, why did he decide to act this week? His explanation was that he was trying to stop "a political corruption crime spree." Under existing Illinois law, the governor has final authority to appoint someone to fill a vacant U.S. Senate seat and wiretaps suggest Blagojevich was about to do just that. According to the criminal complaint, Blagojevich had found at least one bidder -- identified only as Senate Candidate 5 -- who offered to raise the governor $500,000 and another $1 million if he got the appointment. Perhaps Fitzgerald simply wanted to go public before Blagojevich sealed the deal.

But there are other possible explanations. Fitzgerald's hand may have been forced by the Chicago Tribune, which reported Dec. 5 that Blagojevich's phone lines were being tapped. This information signaled everyone -- the governor and anyone talking to the governor or his aides -- that they could become ensnared in a huge criminal investigation leading to indictments.

President-elect Obama has emphatically denied that he ever talked to Blagojevich about his Senate replacement. And certainly Fitzgerald has done everything he can to confirm that Obama is not implicated in any way. But there are a number of unanswered questions about what contact members of the president-elect's team might have had with the governor or his aides, directly or through intermediaries. A number of aides, including the incoming White House Chief of Staff, Rahm Emmanuel, and former campaign leader David Axelrod, have long-standing ties to Blagojevich. And Axelrod has already had to revise his earlier assertion that Obama had spoken with Blagojevich about candidates to replace him in the Senate.

The president-elect has said "I want to gather all the facts about any staff contact that may have taken place. We'll have those in the next few days and we'll present them."

The president-elect's credibility is on the line. For the good of the country, we must all hope this scandal doesn't infect anyone in the new administration. The best way to ensure that is for the president-elect and his aides to be forthcoming quickly.

---

Linda Chavez is the author of "An Unlikely Conservative: The Transformation of an Ex-Liberal."

COPYRIGHT 2008 CREATORS SYNDICATE, INC.

"A financial earthquake measuring ten on the Greenspan scale."

Red Alert: The Backwardation Of Gold

By Antal E. Fekete
December 9, 2008

December 2, 2008, was a landmark in the saga of the collapsing international monetary system, yet it did not deserve to be reported in the press: gold went to backwardation for the first time ever in history. The facts are as follows: on December 2, at the Comex in New York, December gold futures (last delivery: December 31) were quoted at 1.98% discount to spot, while February gold futures (last delivery: February 27, 2009) were quoted at 0.14% discount to spot. (All percentages annualized.) The condition got worse on December 3, when the corresponding figures were 2% and 0.29%. This means that the gold basis has turned negative, and the condition of backwardation persisted for at least 48 hours. I am writing this in the wee hours of December 4, when trading of gold futures has not yet started in New York.

According to the December 3 Comex delivery report, there are 11,759 notices to take delivery. This represents 1.1759 million ounces of gold, while the Comex-approved warehouses hold 2.9 million ounces. Thus 40% of the total amount will have to be delivered by December 31. Since not all the gold in the warehouses is available for delivery, Comex supply of gold falls far short of the demand at present rates. Futures markets in gold are breaking down. Paper gold is progressively being discredited.

Already there was a slight backwardation in gold at the expiry of a previous active contract month, but it never spilled over to the next active contract month, as it does now: backwardation in the December contract is spilling over to the February contract which at last reading was 0.36%. Silver is also in backwardation, with the discount on silver futures being about twice that on gold futures.

As those who attended my seminar on the gold basis in Canberra last month know, the gold basis is a pristine, incorruptible measure of trust, or the lack of it in case it turns negative, in paper money. Of course, it is too early to say whether gold has gone to permanent backwardation, or whether the condition will rectify itself (it probably will). Be that as it may, it does not matter. The fact that it has happened is the coup de grĂ¢ce for the regime of irredeemable currency. It will bleed to death, maybe rather slowly, even if no other hits, blows, or shocks are dealt to the system. Very few people realize what is going on and, of course, official sources and the news media won’t be helpful to them to explain the significance of all this. I am trying to be helpful to the discriminating reader.

Gold going to permanent backwardation means that gold is no longer for sale at any price, whether it is quoted in dollars, yens, euros, or Swiss francs. The situation is exactly the same as it has been for years: gold is not for sale at any price quoted in Zimbabwe currency, however high the quote is. To put it differently, all offers to sell gold are being withdrawn, whether it concerns newly mined gold, scrap gold, bullion gold or coined gold. I dubbed this event that has cast its long shadow forward for many a year, the last contango in Washington ― contango being the name for the condition opposite to backwardation (namely, that of a positive basis), and Washington being the city where the Paper-mill of the Potomac, the Federal Reserve Board, is located. This is a tongue-in-cheek way of saying that the jig in Washington is up. The music has stopped on the players of ‘musical chairs’. Those who have no gold in hand are out of luck. They won’t get it now through the regular channels. If they want it, they will have to go to the black market.

I founded Gold Standard University Live (GSUL) two years ago and dedicated it to research of monetary issues that are pointedly ignored by universities, government think-tanks, and the financial press, centered around the question of long-term viability of the regime of irredeemable currency. Historical experiments with that type of currency were many but all of them, without exception, have ended in ignominious failure accompanied with great economic pain, unless the experiment was called off in good time and the authorities returned to monetary rectitude, that is, to a metallic monetary standard. It is also worth pointing out that the present experiment is unique in that all countries of the world indulge in it. Not one country is on a metallic monetary standard, under which the Treasury and the Central Bank are subject to the same contract law as ordinary citizens. They cannot issue irredeemable promises to pay and keep them in monetary circulation through a conspiracy known as check-kiting. Not one country will be spared from the fire and brimstone that once rained on the cities of Sodom and Gomorrah as a punishment of God for immoral behavior.

In all previous episodes there were some countries around that did not listen to the siren song and stayed on the gold standard. They could give a helping hand to the deviant ones, thus limiting economic pain. Today there are no such countries. If you want to be saved, you must be prepared to save yourself.

You cannot understand the process whereby a fiat money system self-destructs without understanding the gold and silver basis. The Quantity Theory of Money does not provide an explanation, because deflation may well precede hyperinflation, as it appears to be the case right now.

For these reasons I placed the study of the gold and silver basis on the top of the list of research topics for GSUL. These can serve as an early warning system that will signal the beginning of the end. The end is approaching with the inevitability of the climax in a Greek tragedy, as the heroes and heroines are drawn to their own destruction. The present reactionary experiment with paper money is entering its death-throes. GSUL has had five sessions and could have established itself as an important, and even the only, source of information about this cataclysmic event: the confrontation of the Titanic (representing the international monetary system) with the iceberg (representing gold and its vanishing basis) as the latter is emerging from the fog too late to avoid collision.

Unfortunately, this was not meant to be: GSUL has to terminate its operations due to a decision made by Mr. Eric Sprott, of Sprott Asset Management, to terminate sponsoring GSUL, saying that “results do not justify the expense.”

I sincerely regret that our activities did not live up to the expectations of Mr. Sprott, but I am very proud of the fact that our research is still the only source of information on the vanishing gold basis and its corollary, the seizing up of the paper money system that threatens the world, as it does, with a Great Depression eclipsing that of the 1930’s.

Let me summarize the salient points of discussion during the last two sessions of GSUL for the benefit of those who wanted to attend but couldn’t. The gold basis is the difference between the futures and the cash price of gold. More precisely it is the price of the nearby active futures contract in the gold futures market minus the cash price of physical gold in the spot market. Historically it has been positive ever since gold futures trading started at the Winnipeg Commodity Exchange in 1972 (except for some rare hiccups at the triple-witching hour. Such deviations have been called ‘logistical’ in nature, having to do with the simultaneous expiry of gold futures and the put and call option contracts on them. In all these instances the anomaly of a negative basis resolved itself in a matter of a few hours.)

In the commodity futures markets the terminus technicus for a positive basis is contango; that for a negative one, backwardation. Contango implies the existence of a healthy supply of the commodity in the warehouses available for immediate delivery, while backwardation implies shortages and conjures up the scraping of the bottom of the barrel. The basis is limited on the upside by the carrying charges; but there is no limit on the downside as it can fall to any negative value (meaning that the cash price may exceed the futures price by any amount, however large).

Contango whereby the futures price of gold is quoted at a premium to the spot price is the normal condition for the gold market, and for a very good reason, too. The supply of monetary gold in the world is very large relatively speaking. Babbling about the ‘scarcity of gold’ reflects the opinion of uninformed or badly informed people. In terms of the ratio of stocks to flows the supply of gold is far and away greater than that of any commodity. Silver is second only to gold. It is this fact that makes the two of them the only monetary metals. The impact on the gold price of a discovery of an extremely rich gold field, or the coming on stream of an extremely rich gold mine, is minimal ― in view of the large existing stocks. Paradoxically, what makes gold valuable is not its scarcity but its relative abundance, which evokes that superb confidence in the steadiness of the value of gold that will not be decreased by a banner production year, nor can it be increased by withdrawing gold coins from circulation. For this reason there is no better fly-wheel regulator for the value of currency than gold. The same goes, albeit to a lesser degree, for silver.

Here is the fundamental difference between the monetary metal, gold, and other commodities. Backwardation will pull in stocks from the moon as it were, if need be. The cure for the backwardation of any commodity is more backwardation. For gold, there is no cure. Backwardation in gold is always and everywhere a monetary phenomenon: it is a reminder of the incurable pathology of paper money. It dramatizes the decay of the regime of irredeemable currency. It can only get worse. As confidence in the value of fiat money is a fragile thing, it will not get better. It depicts the paper dollar as Humpty Dumpty who sat on a wall and had a great fall and, now, “all the king’s horses and all the king’s men could not put Humpty Dumpty together again.” To paraphrase a proverb, give paper currency a bad name, you might as well scrap it.

Once entrenched, backwardation in gold means that the cancer of the dollar has reached its terminal stages. The progressively evaporating trust in the value of the irredeemable dollar can no longer be stopped.

Negative basis (backwardation) means that people controlling the supply of monetary gold cannot be persuaded to part with it, regardless of the bait. These people are no speculators. They are neither Scrooges nor Shylocks. They are highly capable businessmen with a conservative frame of mind. They are determined to preserve their capital come hell or high water, for saner times, so they can re-deploy it under a saner government and a saner monetary system. Their instrument is the ownership of monetary gold. They blithely ignore the siren song promising risk-free profits. Indeed, they could sell their physical gold in the spot market and buy it back at a discount in the futures market for delivery in 30 days. In any other commodity, traders controlling supply would jump at the opportunity. The lure of risk-free profits would be irresistible. Not so in the case of gold. Owners refuse to be coaxed out of their gold holdings, however large the bait may be. Why?

Well, they don’t believe that the physical gold will be there and available for delivery in 30 days’ time. They don’t want to be stuck with paper gold, which is useless for their purposes of capital preservation.

December 2 is a landmark, because before that date the monetary system could have been saved by opening the U.S. Mint to gold. Now, given the fact of gold backwardation, it is too late. The last chance to avoid disaster has been missed. The proverbial last straw has broken the back of the camel.

I have often been told that the U.S. Mint is already open to gold, witness the Eagle and Buffalo gold coins. But these issues were neither unlimited, nor were they coined free of seigniorage. They were sold at a premium over bullion content. They were a red herring, dropped to make people believe that gold coins can always be obtained from the U.S. Mint, and from other government mints of the world. However, as the experience of the past two or three months shows, one mint after another stopped taking orders for gold coins and suspended their gold operations. The reason is that the flow of gold to the mints has become erratic. It may dry up altogether. This shows that the foreboding has been evoked by the looming gold backwardation, way ahead of the event. Now the truth is out: you can no longer coax gold out of hiding with paper profits.

If the governments of the great trading nations had really wanted to save the world from a catastrophic collapse of world trade, then they should have opened their mints to gold. Now gold backwardation has caught up with us and shut down the free flow of gold in the system. This will have catastrophic consequences. Few people realize that the shutting down of the gold trade, which is what is happening, means the shutting down of world trade. This is a financial earthquake measuring ten on the Greenspan scale, with epicenter at the Comex in New York, where the Twin Towers of the World Trade Center once stood. It is no exaggeration to say that this event will trigger a tsunami wiping out the prosperity of the world.


Antal E. Fekete is a renound professor of Mathematics and Statistics at the Memorial University of Newfoundland. He is a sought after expert in monetary science and gold. He currently resides in Romania.


United States Mint First Spouse Gold Series (click picture)

See also Gold Investing

Gold Investment is an old age tactic of putting your money into something that you feel will increase in value over time. It is a liquid and tangible investment. There are so many motives behind gold investment. Some invest in the hope of future increment in the value, some because they love the yellow metal, some other for price speculation and so on. Read more...



Osama Secret Message to Obama


Thursday, December 11, 2008

Christmas...will it still be Merry in 2009?

Hat-Tip to Texas Fred and fly at night

Big Corporate Bail-outs? Aren't they the guys at the top? Whatever happened to "build from the bottom up and not from the top down" What about the little guy? What about the Forgotten Man? Oh, I see...trying to replicate FDR's New Deal...the mess that started it all...a repeat will end it all! - Storm'n Norm'n

Obama - The New FDR?

We continue to hear from the left that this is the worst economy since the Great Depression. In fact, we only need to go back to Carter to have a relevant comparison. This is simply a scare tactic similar to the “Repubs will take away your Social Security” – a mainstay in the Democratic playbook.

I have listened to Obama over the past two years and found his statements to be familiar. Like his acceptance speech, there were lines that I thought came from a movie called The American President

Alas, I opened a book by Amity Shlaes (The Forgotten Man) and found this by Gov. Franklin Roosevelt, April 7, 1932:

These unhappy times call for the building of plans that rest upon the forgotten, the unorganized but the indispensable units of economic power, for plans like those of 1917 that build from the bottom up and not from the top down, that put their faith more in the forgotten man at the bottom of the economic pyramid. (my emphasis)

The book continues:

January 8, 1934, page xvi

Supreme Court upholds the legality of the Minnesota Mortgage Moratorium Act in Home Building & Loan Assn. v Blaisdell. Passed in response to the farm foreclosures resulting from the Depression, the Act allows individuals unable to make prompt payments to turn to the courts’ weakening contracts.

June 28, 1934, page xvii

New Federal Farm Bankruptcy Act permits moratoria on mortgage foreclosures.

November 6, 1934

Democrats win two-thirds majority in Senate and make significant gains in house, strengthening Roosevelt’s position.

From that point even more government programs were created.

February 5, 1937, page xx

In reaction to Supreme Court’s recent decisions against New Deal programs, FDR announces the Federal Court Reorganization bill, his court-packing proposal.

I guess the courts simply weren’t doing their “job” to allow and unfettered expansion of the Progressive Movement even though the program ran contrary to the Constitution.

Even though the Democrats gained a veto proof majority and passed sweeping New Deal Programs, the Depression continued on until at least 1939 when another world war was in the making.

It appears that Obama is not so transformational as much as he fashions himself as the successor to FDR. The danger is that his programs might work in the same fashion as FDR and we could find ourselves in a less than stellar economy for years to come.

On May 27, 1938, page xxi

Roosevelt delivers speech assailing Congress for voting to cut taxes and accuses lawmakers of abandoning principle of progressive taxation.

Let us not forget that in the early days Obama considered $1 million to be the rich then that was scaled down to $250,000, last night he made that number $200,000, and last week Biden made it $150,000. The number will continue to diminish until the magic $1 trillion per year of new revenues that are needed to invest in his sweeping new programs is achieved.

Just a thought.

Dirty Harry And The Auto Boys...getting what they deserve! Hey Harry! If you didn't legislate so much we wouldn't be in this mess!

Bid to Save GM, Chrysler Loans Dies in Senate

Senate Votes Down Bill to Aid Automakers After Last-Ditch Negotiations and House Vote to Approve



"To all those within the sound of my voice: We have tried very, very hard to legislate for the automobile industry," Senate Majority Leader Harry Reid, D-Nev., said on the Senate floor before the vote. "I am very sorry we have not been able to find a conclusion." Read more...

Auto Bailout Talks Collapse in the Senate

WASHINGTON (AP) -- A $14 billion bailout for Detroit's struggling Big Three has died in the Senate after failing on a procedural vote.

The collapse came after bipartisan talks on the auto rescue broke down over GOP demands that the United Auto Workers union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.

Majority Leader Harry Reid said he hoped President George W. Bush would tap the $700 billion Wall Street bailout fund for emergency aid to the automakers. General Motors and Chrysler have said they could be weeks from collapse. Ford says it does not need federal help now, but its survival is far from certain. Read more....

Not much going on today so click on the picture...neat new toy!



Wednesday, December 10, 2008

It's Time* - From Russia with...not a whole lot of love, but plenty of truth!

From Pravda News Service (Russia)
___
Russian scientist: 'USA is a pyramid that has to collapse'

The US administration refuses to comment on the forecast made by Russian scientist Igor Panarin, who said that the financial crisis may split the United States into six entities. “I am perplexed and therefore I think I will have to decline comment,” White House spokeswoman Dana Perino said.

USA is a pyramid that has to collapse
USA is a pyramid that has to collapse
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Several days ago US and other Western mass media discussed the interview of Russian Professor Igor Panarin, who predicted a civil war in the United States by 2009 and said that the war would eventually result in the collapse of the nation.

Igor Panarin, the dean of one of the departments of the Diplomatic Academy of the Russian Foreign Ministry, originally presented his apocalyptic report at an international conference in Australia in 1998. He repeated his forecast on November 24 of the current year to the Izvestia newspaper. His forecasts seemed totally unreal ten years ago, although they obtain a whole new meaning under the condition of the global economic crisis.

“It was clear back then that the financial and economic power is the major destructive power for the USA. The dollar is not secured by anything. The nation’s foreign debt was growing like an avalanche, although it didn’t exist at all in the beginning of the 1980s. The debt exceeded the mark of two trillion dollars in 1998, when I made my report. Now it makes up over 11 million. This is a pyramid that will definitely collapse,” the scientist said.

The scientist believes that it currently goes about the replacement of the regulation system in a global financial scale. America will not be the world regulator anymore. Two countries may take its place: China with its enormous reserves and Russia as a country that could play the role of the regulator on the Eurasian space.

As far as the fate of the USA is concerned, the aggravation of the financial crisis will destabilize the situation on both the employment market and between the states and the federal center. The political structure of the United States will become a lot more vulnerable.

“There is no joint legislation on the territory of the country. The common Highway Code does not exist there either. The framework which holds the USA together is rather fragile. The armed forces in Iraq mainly consist of non-citizens of the USA. They serve there because they promise to grant them US citizenship,” Igor Panarin said.

As a result, the country will split into six parts. “The first part is the US Pacific Coast. Here is an example. The Chinese make about 53 percent of San Francisco’s population. An ethnic Chinese used to be the governor of the State of Washington, whereas its capital, Seattle, is dubbed as the gateway for Chinese emigration to the USA. The Pacific Coast gradually falls under the influence of China. The second part is the south and the Mexicans. The Spanish language is widely spread there, it has almost become a state language of the territory. Texas openly fights for its independence. The Atlantic Coast represents a different ethnos and a different mindset, which may split into two. Central depressive regions make the final group. I have to remind here that five central states of the USA, where Indians live, declared their independence. It was considered a joke, a political show, but it’s a fact. Canada’s influence is strong in the north. We can claim Alaska after all, it was granted on a lease,” the scientist said. (See also earlier post by Storm'n Norm'n Developing Story - The Russians Are Coming)

The day when Barack Obama won the election has been ironically dubbed as ‘Black Tuesday.’ It brings up the idea that the White House in Washington might be renamed soon too. As a matter of fact, red is the best color that fits America today. If things continue to develop like that, the country’s new name will the USSA – the United Socialist States of America. Americans have reached the highest point of hypocrisy in their self-complacency and confidence. It may at times be very close to absurdity. Just imagine that Governor Schwarzenegger bans words ‘Mom’ and ‘Dad’ from California schools just because of the fact that the words supposedly discriminates gay families. (Note from Storm'n Norm'n: Does this not beg the question, "Will America wake up Obama?")
And the oft' repeated story from Storm'n Norm'n...where are all you nay-sayers now?

Amero to become USA’s new currency when dollar collapses

Pictures of the new currency that will supposedly replace the US dollar have appeared on the Russian Internet. The United States is reportedly working on the new currency, the amero, which will be common for the USA, Mexico and Canada. The unstable financial situation in the world, the collapsing oil prices and the growing foreign debt of the United States may eventually crush the US dollar as the world’s major currency. Needless to say that the US authorities reject the rumors and promise to keep the dollar afloat.

Amero to become USA’s new currency when dollar collapses
Amero to become USA’s new currency when dollar collapses
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Amero notes have no portraits of US presidents on them and resemble the Belarussian rubles. For example, there is an image of a deer depicted on a 50-amero note, whereas a picture of a pyramid of Mexican Indians can be seen on a 100-amero note.

The amero follows the model of the European Union and its euro. It brings up the idea that the new currency can be adopted by the USA, Canada and Mexico within the scope of the North American Union, which the Bush administration established in 2005 under the Security and Prosperity Partnership of North America (SPP).

On April 6, 2005, the US Treasury announced the formation of the Financial Services Working Group to assist in the SPP’s ‘prosperity’ plans. According to its own press release, the US Treasury’s Financial Services Working Group said it “will play a critical role in the SPP.”

Conspiracy theorists contend that the governments of the United States, Canada, and Mexico are already taking steps to implement such a currency, as part of a "North American Union (NAU)" No current members of any country's government have officially stated a desire to create such a body, nor introduce a common currency.

The idea for a North American currency union was first proposed in 1999 by Canadian economist Herbert G. Grubel. A senior fellow of the conservative Fraser Institute think-tank, he published a book titled The Case for the Amero in September 1999, the year that the euro became a virtual currency. Another Canadian think-tank, the C.D. Howe Institute, advocates the creation of a shared currency between Canada and the United States .

After the report came out, center-left nationalist groups in Canada expressed their opposition to any currency union because they view it as an attempt by American businesses to gain access to Canada 's extensive natural resources while dismantling the nation's social services. The 100,000 member strong Council of Canadians, a progressive advocacy group, has declared one of its central issues to be the threat of "deep integration".

Dr. Robert Pastor, in a 2001 book, suggested a common currency should be a foundation of "macro economic cooperation" among the three NAFTA countries. However, the 2005 Independent Task Force on North America, which he chaired, did not recommend a common currency, nor does Pastor in the section for additional and dissenting views suggest a common currency should be a goal.

*It's time to get rid of the of the politic elite. For you did not cause these problems. They did!