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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
Best of William Histed
January 27, 2009
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DOES CONGRESS HAVE A PLAN B IF

THE FEDERAL RESERVE BANK COLLAPSES?

There should be no need for a hard sell on assertions by silver expert Ted Butler that there is a major scandal in how silver prices have been, and are still being manipulated and held down to unrealistic levels. For an investor who sees how shaky anything paper is of late, it could be a great investment, and at the worst, a diversification. What has NOT been manipulated in our economy? And the biggest manipulator of all has been the Federal Reserve Bank. Could it be the next victim of a crash?

Why should it be difficult for anyone to believe that silver is being manipulated? It would be shocking to me if someone could prove that it is NOT being manipulated. But I think we are going to soon be having a lot more terrible things to worry about than who is holding down the price of silver.

Look all around you. What has NOT been manipulated? The real estate market, the stock market, the mortgage market, the investment banking market, the IPO market, interest rates, the "money" supply, the "credit" markets, the oil markets, the natural gas markets, the ethanol market...even school milk prices back some years ago.

Corruption seems to know no limits. And much of this corruption is being down on paper and in computers at the Federal Reserve Bank, in Washington and on Wall Streedt.

Hedge funds have been manipulated, various credit card fees have been manipulated, the federal "bailouts" have been manipulated and abused, and on down the line.

I could argue that the TRUTH about many things has been manipulated by a Wall Street owned media that has sung the tunes of the real owners. From an unneeded war funded by funny money created out of thin air to the sudden and urgent need for "bailouts," the Wall Street owned media, much of it in financial trouble itself, sounds like a bull horn for the Federal Reserve Bank and its banker-Wall Street puppetmasters.

We don't have much of the media we had a few generations ago. Nearly all of the major media has Wall Street bosses. Almost non-existent anymore are the family newspapers and early family broadcasters.

Gold prices have been manipulated; this has been on public record as the "central banks" of the world have tried to hold down and thereby minimize gold. This has been done in various ways, including occasional "selling" of gold reserves to try to supress the price. In more modern economic times, gold has been talked down, ridiculed and libeled by those who have tried to substitute their unlimited paper and promises for real money of any intrinsic value.

Federal Reserve notes, I predict, are not long for this world. The world has been papered with them, their over-abundance has created several big manias which have gone bust in the night...the dot com bust, the real estate bust, the stock market bust and coming soon to a neighborhood near you, the paper dollar bust.

A local newspaper, the Crestline (Ohio) Advocate, recently had a cartoon featuring alleged con artist, Mr. Madoff. The cartoon went like this, "Mr. Madoff, the Federal Government is looking for you. "To arrest me?" he asked. "No, to run Social Security." And to that I might ad, "And the Federal Reserve Bank."

I write a column for several newspapers on a regular basis. I had warned for several years that a big train wreck was coming the way the Federal Reserve was creating "money" and "credit" like crazy. It has happened. I believe before this is over, the biggest crash is going to be the collapse of the Federal Reserve Bank. I do not wish for it, I worry about it. But I see nothing standing in the way of it crashing downt he way its lessor banks have.

I have gone one step further and told my newspaper readers I believe there is an odds even bet the paper currencies of the world will be the next train wreck. Much energy and time is spent in society debating what the "ratios" are between the various fiat currencies and what the proper "exchange rates" should be for a particular day or a particular hour.

If the world's currencies collapse, you are going to see sadness you have never seen before.

This is because in nearly every country, such unbacked paper money has been given no real "official" competition. Nearly every contract in the United States is written in "dollars."

FEDERAL RESERVE BANK TO CRACK UP?

We have been led to believe in the United States that all we have are Federal Reserve unbacked paper dollars to do transactions with. We are given nothing else...no competing currency, no back-up system, nothing but Federal Reserve notes which guarantee you nothikng. A $100 dollar Federal Reserve note does not even promise you can exchange it for a stick of gum.

Of course, this is not the way it has always been. We once had honest money.

The entirely paper financial system is in its early stages of collapse, and I believe this time the Federal Reserve Bank will be the biggest victim. And that's going to change the way the entire world lives.

Other nations have a similar problem.

A government or any other entity may give its guarantee that you may receive so many dollars, but no guarantee can be provided as how what that unit of "money" will buy, say next year, 5 years from now or 20 years from now.

I think we are in for a lot of trouble and it has just begun.

I would like to ask readers to not blame "free enterprise" or "business" for all of our financial problems. We have not had free enterprise in this nation and in much of the world for generations. Our economy has been very regulated and in some ways "managed" by the federal government and its central bankers.

It is not the free market in this country that determines interest rates, the "money" supply, credit, or even what "money" is. It is not the "free market" that determines what a bank pays on your paper savings account or CD which today does not even cover the depreciating value of your unbacked and now seemingly limitless paper dollars from the Federal Reserve.

God help us all if the Federal Reserve Notes and other world currencies crash over the next few years. Note, I did not say crash down to "zero." But crash, they very well may. There has been no preparation on the part of the Federal Reserve Bank or even our own Congress as to what happens if someday Federal Reserve notes are seen in the same light as Confederate money. There is no back-up system to a collapse of the Federal Reserve Bank.

Nearly everything we do in society is geared to unbacked paper. This is a world-wide scenario. Prices are listed in paper money, agreements are made in the paying back of paper money, salaries are in paper money and so forth. We HAVE BANKED EVERYTHING ON PAPER THAT IS BEING PRINTED AND ELECTRONICALLY CREATED IN THE TRILLIONS EVERY FEW WEEKS!

Every major concern that has come up in the current financial collapse has been met with the answer, "create more Federal Reserve Notes." Create more "credit." Create more funny money.

I have never heard this argued any place else. Congress tends to be very reactionary.

Wait for a problem, that try to deal with it. Congress should immediately look into Plan B if the Federal Reserve Bank collapses, because there is a 50 percent change it will in the near future. The stock market has collapsed, the housing market has collapsed, the Silicon Valley market has collapsed, savings and CD interest rates have collapsed, some banks have collapsed, WHAT IS KEEPING THE FEDERAL RESERVE BANK FROM COLLAPSING? All it is doing is spewing out tons more of paper and adding blips into computers.

There is no accountability of what assets the U.S. govenment supposedly has in gold reserves. It's almost treated the way cancer or sex was 50 years ago---it was not talked about.

I don't know of any other writer publicly saying there is a good chance THE FEDERAL RESERVE BANK may collapse in this historic and world-wise economic collapse.

At some point, when will millions feel they don't want to take any more paper for their property, their labor or their efforts? When will the entirely paper house of cards start to fall down? This gold the federal government confiscated from U.S. citizens....how much of it exists anymore that could once again be used as "money" if our paper "money" goes the way of shell money and beads?

Maybe we might just have to go back to what the U.S. Constitution says, that Congress oversees the minting of money. So what intrinsic assets does Congress have that could be used as money? What INVENTORY does it have of gold, silver, copper...this seems like "going back to the future?"

THIS COULD HAPPEN. No one saw 9-11 coming. Few saw the current finacial collapse coming. When people finally decide they are being suffocated by unbacked paper and unbacked promises, we will have a problem we have never seen in this country for a couple of centuries.

"Not Worth A Continental" from our early beginnings to "Not Worth A Dollar" may be the new cry.

I see the collapse of the Federal Reserve Bank coming, at least a flip of the coin chance of it happening. So where's a back-up plan? Where's the emergency escape if our money crashes? It's only kept afloat by a confidence game now. You'll take it right now, so I'll take it.

Congress should right now be looking at what alternative plan, what God-help-us all backup plan if the Federal Reserve Bank goes down the tubes as some of its friends have.

Some of you may say, "Gold and silver." The precious metals have NEVER lost their worth, but we have tens of millions of Americans who don't own a single thin silver dime right now. The U.S. Constitution, as I read it, says Congress is supposed to be minting the money anyway, not a privately owned Federal Reserve Bank.

I have never been in a store yet that has posted prices in silver, or Euros or anything but Federal Reserve notes. Our government seems to have banked its entire FUTURE on Federal Reserve notes.

I wish that some great brains out there take this concern of mine and run with it. I repeat my concern that will change our world if it happens. WHAT BACK UP PLAN DOES CONGRESS HAVE IF THE FEDERAL RESERVE COMES DOWN LIKE A PAPER HOUSE OF CARDS!!?? The time to bring this question out IS NOW, not after it has happened and there is mass confusion as we have never seen it before.

When that happens, and I fear it may, who has been manipulating silver prices will far less of a concern.

It's a given to me that silver prices have been manipulated but that will be the least of our worries if the Federal Reserve Bank collapses. Where is a back-up plan to the paper dollar that is being expanded by the TRILLIONS every few weeks?

As the manipulations all through our economy and our society seem to have infected about everything, why do we think the financial collapse banging down all around our ears will not infect the Federal Reserve Paper Money Printing Company at some point?

The Federal Reserve Bank could not defend us from several busts we have had in this country in the past few years.

Can the Federal Reserve Bank even defend itself at some future point when all it has to offer is multi trillions of more Federal Reserve notes? Soon, they will be as common as falling leaves from trees in the autumn.