Neithercorp Press – 07/01/2010

The U.S. Federal Government under both the Bush and Obama administrations has made it perfectly clear that in the event of almost any major disaster scenario, including economic and environmental, they see the institution of Martial Law as not only viable, but inexorable. From legislative actions like the Patriot Act and the Enemy Belligerents Act (currently in committee) to continuity of government programs such as Rex 84 (formerly classified) and Presidential Directive PDD 51 (currently classified, even from Congress), all the “legal” precedents have been put into place to allow the Executive Branch to implement military oversight of civilian affairs, dissolution of Constitutional liberties, even the end of Miranda Rights and the right to a speedy impartial trial as protected under the Sixth Amendment. In some cases, government legislation allows for the rendition and torture of American citizens as combatants, all for the “greater good”, of course…

Some in this country dismiss such bills and directives as abstract novelties that don’t constitute any real threat to our freedoms or our daily life. People have a tendency to assume that the atmosphere we live in today will remain the same tomorrow and always. Many of us never consider that dramatic, even violent change in American domestic policy is possible on a moment’s notice. On the contrary, the continuity legislation now in place shows that our government under the direction of corporate globalists is not only prepared to implement a military lockdown of this country, they fully anticipate that such an event will occur in the near future.

In this article, we will examine how Martial Law will be presented to the citizens of the U.S., how it would likely evolve and progress, and what the ultimate end result will be if such action is not stopped by the Liberty Movement and the American public.

A “Reasonable” Tyranny

Tyranny does not always burst through your front door wearing body armor and brandishing an assault rifle. Sometimes, it waltzes through your living room and sweeps you off your feet. Sometimes it wears a glad mask that promises warmth and safety. Sometimes, tyranny invites you out to the party and makes you feel like you belong.

NEVER leave your drink unattended around tyranny…

Regardless of how apathetic the American public may seem at any given moment, the majority of them at their core hate false authority backed by thuggish jackboot mentality when directly faced with it, and will not capitulate to despotism easily. That’s just the way we are. Revolution is in our blood (though now slightly diluted), and it is an undeniable aspect of our national psyche. Widespread and immediate military control of U.S. streets would be met with a fury the world has never seen. If martial law were ever to be achieved by the Federal Government, it would have to be presented to Americans gradually, as absolutely reasonable and necessary to their personal well being not to mention that of their family. Globalists would have to twist the reality of martial law into a tapestry of fuzzy logic and two dimensional rationalizations, making the action appear almost mathematically evident. They would also need a crisis on a scale nearly beyond belief.

The U.S. is on the verge of many such crises. The economic health of this country is blatantly unstable, and even some mainstream analysts who called us “fear mongers” six months ago are now reluctantly admitting that some form of collapse is probable:

http://www.nytimes.com/2010/06/28/opinion/28krugman.html?hp

The financial life of America hangs by the thinnest of threads, and any moderate disaster at this stage will most definitely send it spiraling out of control.

Reports of U.S. warships positioning off the coast of Iran are now verified by the Department of Defense, and the media is beginning to spew WMD propaganda once again:

http://www.presstv.ir/detail.aspx?id=131181&sectionid=351020205

http://www.reuters.com/article/idUSTRE65R0HD20100628

The likelihood of a U.S. or Israeli attack on the major oil producing nation has increased drastically. It is only a matter of time before Iran gives the West an excuse, or the West fabricates an excuse from thin air. Any new war, anywhere, would spell disaster for the world economy. Period.

And, perhaps the most devastating of all circumstances, BP’s act of eco-terrorism in the Gulf of Mexico has turned from a distraction that should have been disentangled immediately, into a slow motion catastrophe whose consequences could be so far reaching they might turn out downright biblical, not to mention, an ample pretext to call for a coastal evacuation and even martial law:

http://www.examiner.com/x-17299-Hernando-County-Political-Buzz-Examiner~y2010m5d9-Gulf-Oil-Spill-2010-Plans-to-evacuate-Tampa-Bay-area-expected-to-be-announced

These scenarios do not include the ever present threat of government sponsored false flag terrorism, which could exacerbate social tensions one hundred fold. A 9/11 scale attack, perhaps even nuclear in origin, would assuredly be followed by a declaration of martial law.

Under circumstances like these, people tend to allow their fear to dictate what is “reasonable” at the moment. Principles often take a back seat to “moral relativity” in the face of misfortune, even though wisdom demands that principles be held as most important in the worst of times. Freedom and civilian control over government are vital not just when our wallets are stuffed, our stomachs are fed, and the weather is mild, but when the threat of national upheaval hangs in the sky like a sun-baked vulture. When an early and unpleasant demise becomes a distinct possibility for a significant majority of the citizenry, this is when liberty should take precedence over all things.

One argument is always presented by tyrants and their flock during the initial stages of social enslavement: “You can’t enjoy freedom if you are dead. It is always better to be alive, no matter the cost.”

However, what they fail to mention is that it is exceedingly difficult to enjoy being alive when you are a modern feudal peasant whose destiny is subject to the whim of power hungry corporatists and madmen. There is nothing meaningful in that kind of life, just as there is nothing meaningful in the life of a cog in a great machine except to turn around and around. You can’t enjoy freedom if you are dead, but you also can’t enjoy living if you’re not free.

At the beginning of any autocratic system, total authoritarian control is almost always presented as a panacea, a wonder-drug for the masses. When confronted with epic struggle, some people would rather defer responsibility for their survival to someone else rather than make the effort to save themselves, and thus, totalitarianism is born. Martial law in America would be no different. It will be presented to us as purely rational and absolutely necessary; an “extreme solution to extreme times”. Its success would rest solely on how many of us are willing to make the effort to determine our own destinies, and how many of us are too cowardly to do so.

Consequences Of Martial Law

Regardless of how well governments sugarcoat the prospect of martial law at its introduction, after it has been instituted, it doesn’t take very long for the people to realize they have been duped. The consequences of a militarized society cannot be hidden after the fact, nor does the establishment feel the need to hide those consequences after they have been handed unlimited power.

To peer into the future of what American martial law might look like, one need only research the history of martial law and dictatorships in general. From the Philippines to China to the Soviet Union, the stages of tyranny are pretty much the same no matter where you are in the world. Anyone who believes martial law in America will forgo any of these terrible steps, or that we will somehow maintain a sense of propriety and fairness, is going to be sorely disappointed.

Free Press Destroyed: The very first action of any government that has achieved military control of a country is to dominate the flow of information. The greatest threat to elitist domination is usually the people who they mean to rule over. Ending freedom of the press stalls chances that a view that opposes government control will gain footing. In America, the mainstream media is already under globalist control and would likely remain active during martial law, at least for a time. FOX, CNN, CNBC, etc, would change little, while the true free press (alternative web news which now dominates over the ratings of mainstream media) would be attacked, if not shut down completely. Government enforced web filters (like those in China and being legislated in Australia) could be put in place, and arrests of citizen journalists are liable to occur.

Dissolution Of Checks And Balances: In some cases, military rule allows for the dissolution of states rights and even of Congress itself. If Congress is allowed to remain, it would be in a ceremonial capacity only. Under martial law, all decision making is “streamlined” into the hands of the executive branch. The excuse given for this is often the same everywhere; the President (dictator) must not have his hands tied by checks and balances during a state of crisis, otherwise, his decisions are slowed, and more people could be hurt. Once the executive branch of a country removes checks and balances, they almost never put them back willingly, even after the so-called “crisis” has subsided.

Erasure Of Civil Liberties: Say goodbye to Habeas Corpus immediately. All tyrannies have abruptly suspended rights to fair trial, rights to legal representation, Miranda Rights, even the right to know what one has been charged with before being arrested. This process quickly devolves the justice system to the point where those who are detained simply disappear, and are never heard from again. The U.S. currently has many pieces of legislation that have passed or are pending which allow rendition and even torture of regular citizens, specifically in the event of a national emergency, which under current rules, the President can declare at his leisure.

Curfews, Checkpoints, Searches, Citizen Spies: Say goodbye to privacy. Expect ID checkpoints, and arrests for lack of ID. Expect nighttime curfews in cities enforced with extreme prejudice. Expect warrant-less searches of your home without cause, not to mention surveillance of web and phone traffic. Also count on the fact that some people, out of paranoia, or out of some twisted desire for petty influence, will start pointing an accusing finger at anyone who looks at them the wrong way, and the establishment will encourage this. Tyranny is much easier when the citizens police each other. We actually see some of this behavior today, however, under martial law, there is absolutely no chance whatsoever of holding the authorities or anyone who supports them legally accountable for any wrongdoing. There is essentially no means to voice grievance. Martial law is like a free pass to law enforcement officials to do whatever they please, whenever they please.

Arrests Of Activists And Dissidents: Political opponents of the establishment, no matter how honorable and peaceful they may be, would likely be arrested. Those who have the capability to lead a movement in opposition of the current government or those who have the respect of a sizable percentage of the populace will become priority targets during martial law. All tyrants seek to quash other voices, especially strong voices, so that they can create an environment in which THEIR voice is the only one that can be heard. Activists are normally labeled as subversives, insurgents, or terrorists. They are arrested and treated as enemy combatants. The reigning government will claim that such people are “dangerous” to the stability of the country, and a threat to national security. Associating activists with terrorists also makes the idea of rendition and torture slightly more palatable to the fearful public.

Economic Feudalism: In an autocracy, everything becomes a matter of national security, even the state of the workforce. All jobs become state jobs. The very poor become a possible burden. The middle class and the very rich (if not already part of the establishment) become possible competition. This is why most tyrannies seek to establish “harmonization”, which is really just a flowery way of saying that everyone is made equally dependent on the system for their survival. It is hard to become a successful man in an oppressive society if you are not one of the elite. It is even harder to be a pauper in the same society because you are seen as a parasite feeding off the collective (though you are probably hurting no one). Martial law is always followed by an end to economic prosperity for the average citizen and the removal of the traditional middle class. In the end, this causes the public to subjugate themselves. It creates a system which rewards those who submit with a semblance of the status they once had. The alternative: barely eking out an existence while under constant fear that you could be labeled an impediment to social progress. Given this choice, many would choose to conform.

Food, Water, and Healthcare Rationing: Food and water are life. Control these two things in a culture, and you have the makings of a tyranny. One of the most notable aspects in the elitist quest for empire is the trail of hunger and starvation they leave in their wake. All methods are greenlighted. Burning of farmland, hording of grain, heavy taxation on livestock or harvests, government micromanagement of planting, everything is fair game. Food regulation can be taken to a whole other level in our modern age. With malicious corporations like Monsanto in operation, genetically modified crops can be created to control diet, ‘terminator seeds’ which yield only one crop can be used to keep the masses from replanting, and the pollen from these plants can be used to infect the genus of non-GMO crops birthing mutant strains which damage the food chain. By creating a food shortage, rationing then becomes inevitable, and with rationing comes greater influence. Healthcare rationing would be a natural extension, until every moment of ones life relies on the good graces of a centralized bureaucracy.

It is rare for a government to implement all of these actions in a single instant. Usually, they are introduced slowly over a period of years, and with each new decree a problem is preemptively engineered by the elites to give a “reasonable” cause, or generate a concrete fear. As time passes, people forget what life was like before, left only with the dreadful circumstances of the present, and a disquieting sensation in the pit of their stomachs, telling them that the world they have been presented is not the world we should have settled for.

Never Compromise Liberty

Tyrants prevail when they are able to fool the masses into compromising their ideals, and their conscience. They enjoy devising scenarios by which we are made to tread through a “grey area”, a place where the truth is supposedly a matter of perspective, and that which is right and balanced could become unbalanced and destructive. Once you choose to compromise a fundamental principle, they then use that moment to set precedence.

“If torture is tolerable in the chance that it could save some lives, then perhaps it is tolerable in other situations…” they say. “If some freedoms are expendable in the name of security, then perhaps others are as well.”

How do we stop elites from setting precedence in this way? We never compromise.

“Grey Area” scenarios are a charade. A rigged casino game in which there is only a single outcome and a single winner, and the winner is definitely not you. The crisis is usually one that the establishment created in the first place, i.e. the economic collapse, the BP oil spill, false flag terror, etc. And, the solution is always predetermined. No obstacle has only one solution, there are a myriad of answers to every dilemma, some far better than others. Yet, time and time again, we are offered only one way to resolve every disaster; greater centralization and extended government power.

Most disingenuous of all is the constant promise by government to keep us safe. No government has the power to offer security. Security provided by others is an illusion. The only true safety is that which one provides for himself. We accomplish this by becoming self reliant, self aware, and tough minded. We do not wait for some abstract ruling body to come to our aid, and we do not trade our freedom on the false promise that they will honor their agreement.

I have heard it argued that America is different, that we should not suspect our government capable of tyranny because “we are the government”. I find this assumption extraordinarily naïve. Our government has not represented the wishes of the people for decades. The leaderships of both major parties have supported almost identical legislative measures and extolled parallel globalist ideologies, making a mockery of our election process by giving us only one choice in the casting of our vote. We should be very suspect of such a government, for we are not the same, our goals are entirely opposed, and only one group can be allowed to endure; those who wish to dictate, or those who wish to be free.

I have also heard it said that freedom exists under the purview of government. That the liberties we enjoy are only possible because of the protections that government provides. Elitists often take advantage of our presumption that government is some kind of cultural obligation, one that we must bow to, and that by attrition, we must bow to them. In reality, government is a philosophical construct; a framework that only exists because we will it so, and that administrates freedoms only so far as we allow it to do so. WE are the source of our liberty, NOT government. It is we as individuals who ultimately must protect the freedoms we enjoy. Under no circumstance is any government more vital than our personal liberty. The choice is eternally simple; when asked to sacrifice one or the other, government must go.

The Constitution of the United States was drafted as a means to reign in government and force it to respect the freedoms of the people. It exists to deter the power hungry, for under the Constitution they are supposed to be denied the control they thirst for, not given unrestrained supremacy. Martial law is a tool by which the power hungry can remove the restraints of the Constitution and cast aside freedoms on a whim. This is unacceptable no matter the state of affairs. War, terrorism, economic collapse, environmental catastrophe, none of these events gives anyone the license to usurp our liberties. It cannot and will not be allowed. As the 4th of July approaches, we here in America should remember what it means to call ourselves a “sovereign people”. It is a title every man is born with but few men have the strength and fortitude to keep. “Independence” requires taxing vigilance, a persevering spirit, and the determination to see that neither is tread upon. Independence has a price. In the event that we are confronted with martial law in this country, it is a price we may have to pay all over again.

Neithercorp Press – 06/21/2010

They called us “kooks” and “crackpots”. They said our ideas were outdated and incompatible with modern finance. They said it wouldn’t last. Oh yes, Gold, they said, was a silly investment with no inherent value, and soon, precious metals investors would be “wiped out” by the “inevitable implosion of the gold bubble” (gold bubble….?). Mainstream establishment economists and Keynesians have been yipping and snarling like overanxious Chihuahuas for the past two years against gold and silver, most specifically their use as a hedge against collapse in stocks and currencies.

The vitriol they have aimed at PM’s and PM enthusiasts, though, borders on the obsessive. If we are all “crazy survivalists” and Y2K’ers, then why bother with us? Wouldn’t the folly of our financial strategy be blindingly evident to the majority of investors if we really are all madmen waiting for the seas to boil? If there is no chance of monetary implosion, why bother to plead and beg with the average American NOT to buy gold? Why invent wild generalizations and stereotypes of precious metals investors to dissuade the public from examining our model for economic security? Wouldn’t the mere passage of time prove us inaccurate? What is it about gold that frightens them so…..?

As it turns out (and just as we expected), gold and silver have held strong and even made record gains. Gold is one of the top performing investments of the decade, rising over 277% in value from 1999 to 2009:

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/7375415/Gold-is-decades-best-performing-investment.html

All while the media published assassination attempt after assassination attempt, lashing out at gold in a vain effort to dissuade the masses from even considering any option outside stocks and the dollar. Their dismay at gold’s meteoric rise is evident, and there are many reasons why they were unable to predict it. One; establishment economists are used to a particular status quo, a certain narrow way of looking at the ebb and flow of the economy. They have lost all ability to imagine or comprehend unique scenarios. When confronted with a problem or environment that is new, or beyond the scope of their experience, they lose objective footing, and simply deny that the situation exists at all. Two; gold is the bane of any system based on fiat money creation and centralized financial control. Precious metals represent competition to paper currencies as well as an alternative that protects against the hidden tax of inflation. Possession of gold allows one to be independent, or “off-grid”, in the fiscal sense. Establishment analysts are commonly taught during their formative years in university to ignore or even despise the idea of a gold standard, producing an army of talking head economists who parrot the global elitist ideology. Three; for years, naked short selling of PM’s, and the overselling of metals securities (paper stocks representing gold and silver that the banks don’t actually have), has been used by the banking elite to suppress gold and silver prices. Recent exposure by whistleblowers, with the help of organizations like GATA, are beginning to lay open this fraud, while foreign central banks have been stockpiling gold unabated for the past year-and-a-half at least. Demand for physical is beginning to overwhelm the big banks and their ability to manipulate paper securities. The dynamic of the market is changing, and mainstream investment forecasters are falling far behind.

We believe that the fundamentals today show that this is just the beginning for precious metals and that they may soon play an essential role in events to come…

Gold And Silver Break Into The Mainstream

Precious metals are making waves in mainstream investment lately, and this has establishment cronies and apologists on the war path, making wild and unsupported statements about gold and silver. This segment from CNBC’s ‘Closing Bell Exchange’ hosted by Maria Bartiromo is a prime example of anti-gold propaganda, in this case aimed at Ron Paul, of course:

http://www.youtube.com/watch?v=Qhe5Jc0RgzM&feature=player_embedded

The man making the attacks on Paul in the video above is Ron Insana, who ironically, tried to start a hedge fund company in 2006 after leaving CNBC, only to run it into the ground less than two years later. Investors who sunk money into Insana’s company received a -5% return. Insana charged his investors “management fees” during his fund’s operation, which means, not only did he lose their money, he also charged them for the opportunity to lose their money! And now, we are supposed to take the advice of this financial hack over the advice of Ron Paul, who predicted the subprime collapse years in advance as well as the subsequent recession, and the skyrocketing price of gold? How would you have fared if you had invested on Ron Insana’s advice vs. Ron Paul’s advice? Read more here:

http://www.economicpolicyjournal.com/2010/06/ron-insanas-brutal-attack-on-ron-paul.html

CNBC’s Maria Bartiromo has since run with the anti-gold rhetoric on her show, accusing Ron Paul of a “conflict of interest” in his quest for a gold standard because he also owns gold (Ron follows his own advice. This should be respected, not ridiculed). Bartiromo, as far as I can tell, knows little to nothing about real economics, but the mainstream media, especially in the field of finance, is commonly overrun with incompetent people who are willing to tow the global corporate line for a paycheck. CNBC’s ratings, by the way, have suffered record declines in the past couple years. It won’t be long before these people are only talking to themselves:

http://www.zerohedge.com/article/annual-decline-cnbc-viewership-accelerates-down-37-overall-viewers-category

Despite the yammering of media clowns, many in the general public are turning towards gold as a viable option for protection of savings. The World Gold Council has predicted according to current trends that gold demand will be very strong for 2010, not just by central banks, but by private investors as well:

http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010052773525

China’s gold demand is projected to increase by 50% in the next ten years (a conservative figure in my opinion). Last year, China alone accounted for 11% of global gold demand:

http://www.commodities-now.com/news/metals-and-mining/2164-chinese-demand-for-gold-to-double-within-10-years.html

Since around 2007, gold bullion (physical gold) is now outperforming gold stocks (paper gold). There is now a very discernable divergence between the values of paper gold stocks and the physical metal:

http://www.marketoracle.co.uk/Article20056.html

There are many reasons for this decoupling, but I believe the main cause is the fact that more and more people are demanding physical delivery of their gold instead of allowing their investments to remain as abstract ‘securities’ which exist in writing only. More investors are beginning to dump their holdings of paper traded gold and mining stocks and are now buying coins and bars, which is why the price of physical is dominating over stocks. This is supported by reports of gold shortages across the world.

In the UK, dealers are struggling to meet gold coin demand:

http://af.reuters.com/article/metalsNews/idAFLDE6571T720100608?sp=true

And German dealers are snapping up disappearing gold Krugerrands as fast as possible in light of the EU’s sovereign debt crisis and the falling euro:

http://www.zerohedge.com/article/local-gold-inventories-depleted-panicking-german-dealers-stage-run-krugerrands

Gold bullion demand has led to increased need for storage. Vault operators world wide are now straining to meet the new requirements for protected storage space:

http://goldnews.bullionvault.com/gold_bullion_061520103

Total announced gold ETF holdings now exceed total world production, while global mining output of gold is falling rapidly (ETFs are supposed to stockpile gold bullion, as opposed to ETNs, which use derivatives, however, there is evidence to suggest that some ETFs claim to hold gold reserves they don’t actually have) . South African mines have seen output drop by 50% or more over the past ten years. What this means is that by a simple function of supply and demand, gold should leap in value over the next year. The Swiss asset management firm UBS has now predicted gold will rise to $1500 an ounce in the next six months:

http://goldnews.bullionvault.com/gold_price_061420105

Of course, this prediction would be correct only if current economic instability remains steady, and does not accelerate. If the situation becomes even more untenable (which is likely), gold and silver could jump to levels never before seen by modern markets. The current fervor for precious metals and the protection they provide is only the beginning…

Inflation Or Deflation?

Ever since the recession/depression took hold of the U.S., economists and analysts from around the world have predicted that one of three possibilities would result. Some have forecast a V-shaped recovery, or even a “jobless recovery”. It is obvious now that a V-shaped recovery is a pipe-dream, and there is no such thing as a recovery without job creation to provide support. The other group (those who realize that we have only seen the onset of this collapse) is split into two camps; Inflationists and Deflationists.

Traditionally, those who believe inflation is imminent pull away from Dollar based investments and turn to PM’s as a hedge against currency devaluation. Deflationists on the other hand, usually believe that the Dollar will maintain or increase its value and that commodities like gold will fall in value along with everything else. Problems arise though in this dynamic because there are many variations of “deflationary theory” and “inflationary theory”, not to mention about as many definitions for inflation as there are economists. Even those who agree that there will be inflation often disagree on the form that inflation will take.

This confusion has arisen, I believe, because we are confronted with a fiscal conundrum no one has ever faced before, composed of elements that have occurred in the past, but never occurred together in the same event. We are seeing functions of both deflation and inflation working in tandem during the same crisis, and unfortunately, they do not cancel each other out! We are seeing capital destroyed by malfunctioning and toxic debt securities, which have caused deflation in jobs and markets, yet prices on goods including food and energy have increased 18.7% from March 2009 to March 2010:

http://www.breitbart.com/article.php?id=CNG.f4ca4a183df2102e9ad9338f1c9b7c75.171

This shows that while deflationary elements are in play, we are not seeing an event similar to the Great Depression of the 1930’s. We are seeing something much worse. This may be partly due to the fact that America is far more financially interdependent with the economies of other nations today. In the 1930’s, America was an independent manufacturing powerhouse with a mostly closed system. Now, we are a 70% consumer based society with little manufacturing capability on our own soil and trapped in unsustainable debt to nations like China who do not necessarily have our best interests at heart.

In fact, China’s recent announcement that the Yuan will now depeg from the Dollar signals trouble for U.S. Treasury Bonds. With a stronger Yuan and a shrinking trade deficit with the U.S., they will no longer need or want to continue purchases in American debt:

http://www.reuters.com/article/idUSTRE65I2Z420100619?type=ousivMolt

As the Chinese currency appreciates in value, it is likely they will dump their holdings of our T-bills in response. This would cause severe devaluation of the dollar, and it is a development we have been warning about for years. The only question now is, how quickly will China get rid of U.S. Treasuries?

When the Great Depression hit, markets, jobs, and wages fell, but so did prices on goods. We did not turn up the printing presses and monetize our debt unabated during the depression, which is what the private Federal Reserve IS doing today. So far, it seems the Fed has no plans of ending this printing anytime soon, and without a full audit of the central bank, there is absolutely no way of knowing exactly how many Dollars are circulating in the world. We can only estimate, and hope.

I feel it is likely that as the collapse progresses, we will have to deal with a combination of obstacles. We could see deflation in stocks, jobs, wages, real estate, and capital, while at the same time face a falling Dollar and rising prices on goods. The EU is suffering from the symptoms of this new brand of financial anarchy, with falling markets and real estate, but without the advantage of falling prices on goods because of the weakening Euro. Consumer prices in Greece and Spain continue to rise even though they are in the midst of a deflationary spiral:

http://www.businessweek.com/news/2010-06-08/greek-may-consumer-prices-rise-on-higher-fuel-drinks-update1-.html

http://news.xinhuanet.com/english2010/business/2010-05/28/c_13321462.htm

But where does gold fall in all of this? Gold has flexed its muscles during this implosion, proving it can withstand both deflationary and inflationary factors. PM’s are sought after in the EU, Asia, and the U.S. and are breaking free of their traditional relationship to markets and paper currencies. Basically, gold and silver are acting like currency again, as they did less than a hundred years ago, instead of just commodities, as they have in the past few decades.

Will gold suffer drops in the near future? Of course. But one has to look beyond the next quarter and examine the long term trend of an investment. For gold, that trend has been phenomenal the past ten years and shows no signs of abating. How many people foolishly claimed that gold would never top $500, $600, $700 an ounce, etc.? Regardless of inflation or deflation, no one in their right mind can deny that precious metals have been sound protection.

Why Buy Gold And Silver?

Buying a stack of gold coins is more than an act of wealth protection. It’s more than just an investment. It is a social and philosophical statement. When you buy precious metals, you defy the restrictive nature of central banking and fiat currency. Paper money has never been OUR money, it is the establishment’s money, and always will be. Gold offers us an opportunity to hold our own money, on our own terms. The more widely used gold and silver become, the less dependent we are on Federal Reserve paper, and the less power they have over our financial life. If everyone used PM’s, the elitist central banking system could conceivably disintegrate. Buying gold is an act of monetary revolution, a revolution that is necessary if we are to save this country.

I have heard the argument in the past that during social catastrophe, gold and silver are meaningless compared to bullets and bread. This is partly true. No currency should ever take precedence over survival. However, no modern economy can grow on barter alone. A return to the village square would be an admirable start in the process of wrestling power from global banks, but for the economic maintenance of an entire nation of people, a stable common currency grounded in tangible wealth is also absolutely vital. Gold and silver have been and probably always will be the best way for us to decentralize economic control yet still preserve a national financial structure that lends itself to progress. At the height of a collapse, PM’s can provide a stop gap for purchasing of goods when paper money has lost all allure. Their use may decline after a meltdown, but collapses heal over time, and rebuilding always requires the induction of a new and solid currency, usually made of PM’s or backed by PM’s.

Gold is now in the international view and is liable to stay there for years to come. The next step would be to begin trading gold and silver as currency again in a new liberty based economy free from the one we are forced to live in now. Such an endeavor would require men with some financial clout, ingenuity, honesty, and the courage to defy the globalist system. It would also require today’s investors to STOP buying paper gold stocks and derivatives like ETFs, ETNs, and CEFs. Until all investors demand physical delivery of their metals, the manipulation of the gold and silver markets by banks such as JP Morgan will never end. In this way, we could preempt the engineered collapse of the fake globalist economy with the formation of our own internal economy, and perhaps even soften the terrible crash to come.

I have said it before and I’ll say it again; a truly free man seeks to provide for himself and provide for the people what the system does not. Eventually, the system will have to try to stop him. If the system cannot stop him, it will have to conform to him, or find itself obsolete in the minds of the masses. Precious metals offer us a valuable avenue in making our existing oppressive system of fiat and debt obsolete.

Neithercorp Press – 06/10/2010

As the economic collapse progresses through 2010 and its fiscal consequences become more certain, the field of view reaching towards our social and political future has become more vague and unclear. Every analyst or researcher of the New World Order and the global elite now seems to have a different insight into how our situation will develop once the financial implosion peaks, and people actually start to react to the obviously severe circumstances.

While having a microphone in the middle of the annual Bilderberg conference in would surely clarify the details of exactly how the globalists plan to conduct themselves over the coming year, this is unfortunately not an option, and reports leaked from Bilderberg cannot always be taken at face value. One element nearly all of us can agree on, though, is the distinct possibility of expanded wars in the near term, used as a diversion by the elites to pull the focus of the masses away from their dire economic atmosphere, away from the bankers that created the meltdown, and towards an overseas adversary.

War on a broad scale creates fear, and fear often inspires a senseless brand of collectivism and misguided patriotism in those uninformed subsections of the public, a patriotism based on blind zealotry instead of individual liberty. The average citizen faced with an ample and immediate threat by a foreign enemy tends to fall in line with establishment policy, even if the conflict with that foreign enemy is entirely fabricated, even if establishment policy is ultimately a greater threat. War has always been utilized as a tool by aristocrats and monarchy to not only expand kingdoms and empires, but to keep the “peasants” of their empires weak, weary, and subservient.

The size of these wars seems to reflect the scope of the goal the globalists wish to accomplish at the moment, and today the stakes are very high. The world has reached a point of no return as far as the economy is concerned, and only two conclusions are possible: the people stand down, the elites prevail, and global government is established, or, the people stand firm, the elites fall, and their designs are put to an end perhaps forever. It is an all or nothing scenario, and one of the few tricks the globalists have left to turn the tide fully in their favor is war on a magnitude so humbling that it intimidates champions of free society into conceding without attempting a defense. To paraphrase the Chinese tactician, Sun Tzu: the best generals win without ever having to fight a real battle. They simply give their enemy the impression that fighting back would be utterly futile and force them to surrender before the battle ever begins.

In this article, we will examine some of the regions around the world in which such a “shock and awe” campaign could begin, facilitating the escalation of global war.

Israel And The Middle-Eastern Powder Keg

If any nation poses an immediate threat to the stability of the world at large, it would have to be Israel.

Israel receives “official” financial aid from the United States to the tune of $3 billion a year, and this does not include off-book aid or armament projects such as Obama’s recently approved ‘Iron–Dome Defense’ missile system costing $205 million:

http://www.haaretz.com/news/diplomacy-defense/u-s-congress-gives-obama-okay-to-fund-israel-rocket-defense-1.291339

Despite this massive monetary and military support, the Israeli Government continues to hide behind the insincere notion that the country is some kind of “underdog” surrounded and threatened by the entire world:

http://www.jpost.com/Opinion/Op-EdContributors/Article.aspx?id=177306

The unbalanced denial in the majority of the Israeli community over the actions of their own leadership borders on clinical insanity, and their obsessive self identification with the ‘David and Goliath’ mythology often leads them to conveniently rationalize any act of brutality. When you constantly paint yourself as the victim, every attack you make on others can then be justified as “self defense”. As the recent slaughter of activists in international waters on a Turkish flotilla bringing food and supplies to Gaza has shown, ironically, the open viciousness of their government’s foreign policy has actually begun to legitimize their paranoia by actively turning other nations, including former allies such as Turkey, against them:

http://www.guardian.co.uk/commentisfree/2010/jun/08/turkey-jihad-israel-flotilla

As anyone with any sense can see, the current establishment in Israel is a comprehensive disaster waiting to happen. Trying to warn most Israelis of the peril their administration has exposed them to seems to only invite accusations of racism and Anti-Semitism. Obviously, if someone is against the policies of the Israeli Government, then they must hate the entire Jewish community. Why listen to the cold hard irrefutable facts, or engage in honest debate, when you can simply label a critic as a “Neo-Nazi”?

What could be more hazardous than a country with endless support from the world’s only superpower, and a collective Napoleon Complex? That same country with its finger on the button of a nuclear arsenal.

Israel has never officially confirmed or denied the possession of nuclear missiles. However, in 2006, former Israeli Prime Minister Ehud Olmert made an embarrassing slip during a visit to Germany in which he named Israel as a nuclear armed state:

http://www.abc.net.au/am/content/2006/s1809421.htm

Evidence has been uncovered showing that not only has Israel had nukes for decades, but they have also tried to sell them to other countries such as apartheid South Africa during the 1970’s:

http://www.abc.net.au/news/stories/2010/05/24/2908105.htm

Reports of Israeli war games in preparation for a strike on Iran also apparently include a nuclear option:

http://www.youtube.com/watch?v=sLlHQTT0FhA

The Israeli government has refused to join in a recent anti-nuclear arms treaty which would make its nuclear facilities subject to UN inspection:

http://www.reuters.com/article/idUSTRE64S1ZN20100529

One would think that if Israel is so concerned about countries such as Iran constructing nuclear weapons, they would put their money where their mouth is and support a treaty which mandates UN inspection to prevent ballistic development. Apparently, Israel has more to hide than Iran does…

Last year, we talked about the link between Syria and Russia, and the possibility that any strike by Israel in the Middle East could spur Russia into open warfare. This possibility seems more and more prevalent as 2010 progresses.

Russia has maintained a naval base on the Syrian coast of Tartus for years, and has recently revamped and rearmed it:

http://www.ynetnews.com/articles/0,7340,L-3434145,00.html

http://www.jpost.com/MiddleEast/Article.aspx?id=175607

Last year, Iran signed a ‘mutual defense treaty’ with Syria:

http://www.turkishweekly.net/news/93798/iran-syria-sign-defense-pact-against-39-foreign-aggression-39-.html

And now, Israel has threatened both these countries with war:

http://www.ynetnews.com/articles/0,7340,L-3877404,00.html

http://www.presstv.ir/detail.aspx?id=117640&sectionid=351020104

The U.S. has pressed for tough sanctions against Iran in the UN, and Barack Obama has stated essentially that the nuclear option is viable in response to Iran’s enrichment program (even though UN inspectors have found no evidence that this program is for weapons purposes):

http://www.nytimes.com/2010/04/06/world/06armstext.html

http://www.guardian.co.uk/world/2009/sep/30/iranian-nuclear-weapons-mohamed-elbaradei

What this produces is a regional domino effect. Anyone who thinks that an Israeli or U.S. attack on Iran or Syria will be isolated to just those countries is sorely mistaken. An attack on one will eventually if not immediately involve the other, and the potential for intercession by Russia is high, especially if even a single nuclear weapon is used. How far such a conflict would escalate is anyone’s guess, but even a war on Iran alone would be devastating to the world economy and to the United States specifically. The chances for a catastrophic global conflict are very high in this situation.

China, North Korea, And The Asian Union

Communist China has been, and probably always will be, a construct of Globalist interests. The Chinese communist revolution succeeded because of supply and support from the U.S. military under the direction of Roosevelt and General George C. Marshall using Russia as an intermediary. The Rockefeller Foundation and the UN helped form China’s one child policy 1979, and the Rockefellers are heavily involved in the financial affairs of China to this day. China plays a key role in the push towards forced globalization.

As we have covered in numerous articles over the past few years, China has been shifting its economic policies away from an export based economy with an artificially weakened currency, to an immense 1.3 billion person import and consumption hub with a strong reserve currency at the center of the new ASEAN trading bloc. There is a very high probability that this move is in anticipation of a final economic plunge in world markets soon to occur, allowing China to not only survive, but thrive as a new center of trade and finance.

For this shift to succeed, China will eventually dump its extensive holdings of U.S. Treasury Bonds, causing the now publicly traded Yuan to rise, and the Dollar to finally collapse. A dollar implosion, of course, was always inevitable, and the dumping of bonds by China makes perfect sense when one understands this, but due to a lack of knowledge on currency issues a majority of the American public could be convinced that the dollar collapse was completely facilitated by China, and that war is a viable response. If recent Chinese military movements are any indication, they may be preparing for just such an eventuality.

Military movement on the Chinese mainland has been muted, and signals little if any intentions of expansion or conflict with its neighbors, but Chinese naval production and scope has greatly increased, which is congruent if China has expectations of conflict with the West. China has diverted large portions of funds away from its ‘People Liberation Army’ into its Navy, Air Force, and Missile Command. In 2008, an underground nuclear class submarine base was discovered on the South Pacific, which would give China the ability to command the region, including the Asian shipping lanes vital to countries like South Korea, and Japan:

http://www.telegraph.co.uk/news/worldnews/asia/china/1917167/Chinese-nuclear-submarine-base.html

The number of nuclear class submarines being built by China in the past few years has also caused India concern:

http://www.thaindian.com/newsportal/uncategorized/india-concerned-at-chinas-growing-n-submarine-fleet_10045380.html

Chinese aggressiveness in the pacific has been heightened since 2008 as well. Most of us remember the incident last year when five Chinese vessels harassed the USNS Impeccable in international waters. But this was only a preview. In April, a Chinese armada passed extremely close to Okinawa and Japanese territorial waters, which some in the Japanese government consider an act of intimidation:

http://search.japantimes.co.jp/cgi-bin/nn20100414a2.html

This was quickly followed by the harassment of a Japanese ship by a Chinese helicopter from the same armada:

http://www.breitbart.com/article.php?id=D9F8L4880&show_article=1

A Chinese submarine had also been spotted near the coast of Taiwan only days before the U.S. approved a $6 billion arms sale to the island nation, though China has officially denied the incident:

http://www.chinapost.com.tw/taiwan/china-taiwan-relations/2010/02/01/243093/Navy-denies.htm

All of these events appeared to culminate in a long range war games display by the Chinese at the end of April. The message is obvious; China wants pacific dominance, and is preparing to commandeer it by force. Why now? Because the economic bridge between Beijing and Washington D.C. is about to collapse, and there will no longer be any financial incentive to keep mutual relations peaceful.

That does not mean that the citizenry of either side would be supportive of all out conflict, but this could change with events in North Korea.

North Korea, like Iran or Syria, could be used as a stepping stone by globalists to lure the west into a wider war. The American public would not accept immediate full-scale combat with China, but they might accept the invasion of North Korea, and then later be manipulated into seeing combat with China as a necessary “outgrowth” of the smaller war. The bottom line is, whether China is willing to risk an alliance with North Korea in the face of U.S. opposition, the mere presence of large U.S. naval forces so close to China at this point in time would be like tripping the Chinese in the middle of their puffed-up strutting and chest beating. It would be an invitation to hostilities…

A war in the East would be a perfect opportunity for consolidation of power. Desperate Asian nations affected by the resulting fallout would be much more apt to fully commit to ASEAN and an Asian Union. The Economic collapse would hit the U.S. harder than any other country, and China would be left to centralize control of the Pacific region.

Pakistan, India, And The Bomb

The U.S. has been blatantly encroaching on Pakistani territory since the Afghan war started. Aerial drone attacks on Pakistani soil now take place almost daily. Ten years ago, open U.S. incursions into allied airspace without permission would have been unheard of. Now, it’s almost expected. This type of activity undoubtedly breeds resentment in the local populace, and the terrible cycle continues. America oversteps its bounds on the orders of globalists, innocents get killed, their families become militant against us, and then we label them “terrorists”; lumping them in with Al Qaeda, an organization the CIA created and supported in the early 80’s using $3 billion in taxpayer funds. Is this irony, or is it completely intentional? Creating pockets of vengeful people around the world can be useful…

After angering the locals with indiscriminate killing, the U.S. has now given Pakistan an ultimatum; launch more offensives against the “terrorist networks” (which we created) in outlying territories, or we will involve ourselves further in your affairs:

http://www.ajc.com/news/nation-world/ap-source-us-seeks-536113.html

One would think that the U.S. government was TRYING to infuriate Pakistan. Perhaps they are…

Pakistan makes a wonderful target for the Elite. First, it holds a moderate nuclear arsenal of 70 to 90 missiles. Second, their western mountain ranges are home to the Taliban which was driven from Afghanistan by the U.S. Third, their previous alliances with America can be used to take advantage of them while at the same time slowly turning them into an enemy. Fourth, the failed attack in Times Square by supposed Pakistani terrorist, Faisal Shahzad, has been widely reported.

Now, imagine a successful attack befalls an American city. Perhaps a false flag nuclear attack. How easy would it be to fabricate evidence and blame this event on Pakistan? A substantial number of Americans would buy such a story in a heartbeat. The tale falls together perfectly. U.S. actions in Pakistan are interpreted as invasion. The Pakistani government “recruits” terrorist cells in secret, hands them a nuclear weapon, or allows them to steal one, and then helps them to unleash it on their enemies in America. Retaliation and invasion becomes essential to American “security”.

Pakistan is being groomed by our media as the new “axis of evil” state, and why not? The perfect motive has been carefully provided by us!

The same tactic could be used on Indian soil. India holds between 60 and 80 nuclear weapons. An attack of this magnitude could set off a nuclear exchange between the two countries which would reverberate throughout the world. Even if a wider war did not erupt, the global economy would evaporate within a day.

In testimony before the House Armed Services Committee in May, General Petraeus warned that a new terrorist attack in India could destabilize the region and increase tensions with Pakistan:

http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/front-page/14-another-attack-to-reignite-indopak-tensions-petraeus-830-zj-04

A conference of the South Asian Association for Regional Cooperation in April was also overshadowed by the growing antagonism between Pakistan and India:

http://www1.voanews.com/english/news/asia/India-Pakistan-Tension-Overshadowing-Regional-Summit-92196899.html

The fact that Pakistan had to borrow $11.3 billion from the IMF last year just to stay afloat does not help. The austerity measures demanded by the IMF could eventually cripple the Pakistani economy. If the their government were to default on it sovereign debt load, their nuclear weapons facilities could go unprotected as many in Russia did during the fall of the Soviet Bloc. Under those conditions, a nuclear event would be assured.

War Is Good For Globalists

Each one of these projections might sound entirely theoretical, but the the evidence supporting their development is tangible, and their culmination is far closer than any of us might like to admit.

While a large nuclear exchange would be devastating for everyone, including the Elites, a smaller controlled exchange would create enough fear to take hold of the population without laying the world to waste. Even without radiological disaster, conventional war on a new front in the midst of the most fragile financial atmosphere modern man has ever seen would be just as demoralizing. War makes drastic change, sometimes terrifying change, possible. Changes that would normally require decades to accomplish can be unleashed in the span of months or even weeks. War conditions the national psyche, and makes it susceptible to tyranny. It gives rise to collective madness, and makes us forget who we are.

As the Liberty Movement gains ground in the real battle, the battle for the truth, we should also anticipate proxy conflicts, false terror attacks, and engineered international diversions. The closer we get to exposing reality to the masses, the more probable a global war will be. This is just the name of the game. Men in positions of unrestrained power do not give it up without taking other men down with them, and they prefer to take as many as possible. We will see terrible things in our lifetimes, and make difficult decisions no one should ever have to make, but our purpose remains clear: end the fog of lies, and keep the world free. No matter what happens, the focus should not be whatever war we are faced with, but who caused the conditions that led to that war. In all the confusion, there is only one real confrontation, one campaign; the fight between those who wish to dominate life, and those who merely wish to live unchained.

Neithercorp Press – 05/31/2010

The sovereign debt crisis in Greece and many other European nations has, at least for the moment, opened a gap in the wash of financial disinformation that has prevailed in the mainstream media for the past year. The average American is now more aware of the terrible costs of living in an artificially driven and widely manipulated “global economy”, and has also been exposed (at least for the moment) to the very real frailties in our own markets, which have been hidden or downplayed by the government as well as disingenuous establishment economists. Events in the EU, however, are only a glimpse of the greater and more imminent threats we face in the near future. In this article we will look at some of the latest and most disturbing moves by governments and financial institutions, as well as tell-tale signs in our own local cities, which signal that a full-spectrum collapse of world markets and possibly our own currency is not only in progress, but nearing completion.

World Market Signals

All eyes have been focused on the Greek situation for the past month, but we cannot let this one storm of the financial crisis distract us from the other threats that lie just beyond the horizon. There are many far more pressing concerns than insolvency in Southern Europe, though we’ve been drowning in “Greek Contagion” rhetoric 24/7 and it is difficult to think of much else. The idea that instability in Greece is somehow responsible for instability in the rest of the EU is simply unfounded. Most nations in the EU were on the verge of bankruptcy long before the sovereign debt crisis in Greece began. Spain, for instance, has just lost its AAA credit grade with Fitch Ratings due to its massive deficits:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqiS_6hwClPg&pos=1

Italy, Ireland, and the UK are likely not far behind. The UK posted record deficits in April:

http://www.bloomberg.com/apps/news?pid=20601068&sid=a3CziXMGujDA

Their government has recently called for budget cuts which could target some welfare, unemployment, and disability payouts in order to blunt the edge of their own growing debt problem. Some say this move is too little too late, and that Britain may have to face the same austerity measures as Greece just to survive:

http://www.marketwatch.com/story/uk-budget-cutting-begins-with-83-billion-slice-2010-05-24

There are two problems with the news coming out of the EU. First, establishment economists will attempt to dilute public awareness of the issues by diverting all blame to the Greek crisis. By making claims of Greek contagion, they give the masses the false impression that stopping the fallout in Greece will somehow cure the systematic meltdown in the rest of the world. Already, euro-zone economists (propagandists) are feeding the Greek people the same lie as our economists have been feeding us, declaring that a weak currency and import capability, combined with greater reliance on other nations and the IMF, will create some kind of ‘export nirvana’, and that Greece will suddenly rise from the grave as a kind of industrial powerhouse:

http://www.reuters.com/article/idUSTRE64G11U20100517

This is the same double-think the globalists have been using everywhere; “Weakness is strength”.

Regardless of what talking-head financial analysts tell us in the next six moths, we must never forget that the collapse was not caused by a single nation, but the actions of all governments in collusion with international banks over a period of decades.

Second, we will be hearing a lot in the news over the coming year about the credit grades of rating companies such as Fitch or Moodys. However, these credit grades are a purely psychological affair. If they were based on concrete fundamentals, Spain would have lost its AAA credit rating long before now, not to mention the UK or the U.S. The fact that they are finally willing to begin downgrading the debt value of certain countries only shows that circumstances have become so untenable that rating agencies know they will look foolish if they do not do otherwise. Now that they have begun, watch for rating downgrades to accelerate in the coming year, especially in the EU, punishing the markets with repetitive stock plunges.

The biggest news, though, the news that no one is paying much attention to, is the activity in Asia. In the midst of all the chaos across the Atlantic, we have forgotten to take note of the activities of the great elephant in the room just across the Pacific.

China has been busy, and the speed at which they are shifting their economic system is even startling. In past articles we covered the Chinese dumping of U.S. Treasury Bonds in response to our ever rising national debt and dangerous liquidity measures by the private Federal Reserve. All this, we believed, was in preparation for a valuation of the Yuan and a decoupling of the traditional trade relationship between China and America.

To be clear, some economists have begun overstating the recent purchases of new T-bills by China in response to the European debt crisis. Meaning, they believe China will now turn back to the Dollar as a safe haven asset against a fall in the Euro. China has only increased its reserves by 2% in response to the possibility of a Euro collapse, which in my opinion is hardly a show of faith in the Dollar. Also, the vast majority of purchases in recent months have been for SHORT TERM treasury bonds maturing in 26 weeks or less. You can see the chart for all April purchases here:

http://1.bp.blogspot.com/_8hz7JYvMfTU/S9pCMlaajjI/AAAAAAAABLY/GP5lbUUmqwI/s1600/Apr10-Auction.JPG

Countries buy short term bonds in our debt because they see our long term debt as a severe risk. With our deficits climbing to levels never dreamed of only ten years ago, we need long term investment in our Treasuries if we are to sustain the U.S. economy. These investments are not coming, nor is it probable that they will in the future. China is now ready to de-peg the Yuan from the Dollar if not break from the American financial system completely.

Back in 2008, rumor spread in some investment circles that China was planning to issue its own T-bonds; called “Panda Bonds” or “Yuan Bonds”:

http://www.chinastakes.com/2008/12/panda-bonds-could-help-china-avoid-the-risks-of-us-treasury-bonds.html

As it turns out, Yuan Bonds are no longer a rumor. Issued late last year with little fanfare, and considered by some investors as a novelty, Chinese Treasuries are now growing far beyond expectations:

http://www.businessweek.com/news/2010-03-12/china-bonds-may-return-6-on-banks-buying-fund-says-update1-.html

http://english.peopledaily.com.cn/90001/90778/90859/6986357.html

Even more intriguing, China has opened its index futures to foreign investors, revealing a desire to take a more central role in world economic activity:

http://english.peopledaily.com.cn/90001/90778/90862/002046.html

China has had trillions of dollars in currency reserves which help create the trade deficit that allows their industrial based export economy to thrive. Why would they want to issue bonds in their own currency, increasing the value of the Yuan and ending their trade advantage? Because China’s goal is to convert its billion citizen society into an import and consumption hub while making the RMB, or the Yuan, a reserve currency to rival the Euro and the Dollar.

Indeed, these bonds are meant to strengthen the Yuan, increase its prominence as a reserve currency, and eventually allow China to break from U.S. treasuries entirely. It is also possible that the valuation of the Yuan could make it eligible for inclusion in the IMF’s Special Drawing Rights basket currency, a goal China has openly expressed:

http://www.reuters.com/article/idUSTRE6250LC20100306

China has strengthened ties with Indian markets, African markets, and formed the ASEAN trading block. ASEAN is now attempting to “unite” with the European Union in order to “combat” the global financial crisis:

http://english.peopledaily.com.cn/90001/90777/90856/7001488.html

Every single action by China in the past two years indicates that they are not only preparing to break with the U.S., but that they are ready to do so today if they preferred. The bottom line is this: China wants reserve status for the Yuan, and China wants the Greenback replaced as the world reserve currency. When China de-pegs the Yuan from the Dollar, they will begin dumping whatever U.S. treasuries they still hold, allowing the Yuan to strengthen and the Dollar to fall. This will be a disaster for the U.S. economy, and it could conceivably happen before the end of this year.

Not far off the coast of China, Japan has found itself in dire straights. Still clinging to the traditional export relationship with the U.S., America is no longer consuming Japanese goods anywhere near the pace they were once accustomed. This has resulted in a deflationary spiral in Japan’s markets, as well as wages and wholesale prices of goods. Expect to hear much more about this before the end of 2010:

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9.PG6nGY6_g&pos=5

The Japanese government has on several occasions suggested ending reliance on the U.S., and to discontinue purchases of U.S. Treasuries. They have also hinted at the possibility of fully joining China’s ASEAN trading bloc as a way to offset any damage done by breaking from American markets. The deflationary collapse in Japan is extremely hazardous and grows worse now with each passing month. Japan may soon have no other choice but to turn to ASEAN for trade support and end its relationship with the U.S. Once again, this move would bring calamity to American stocks and to our currency.

Brazil, a member of the BRIC group of nations along with China, is facing serious upheaval in its bond markets:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aUVznIauvQYg&pos=4

The Brazilian currency is also declining in a fashion much like the Euro, and their sovereign debt issues are becoming unmanageable. This in turn could lead to greater pressure from BRIC nations to push for a new reserve currency outside of the Dollar and the Euro.

These signals across the globe are like the swell of the tide just before the onslaught of a hurricane. If you know how to read the waters, then you know when its time to stop the beach party and run for cover.

American Market Signals

Though the infinite stimulus by the Federal Reserve and the skewing of statistics by government agencies like the Labor Department have lead the average American to believe a recovery is in the making, the fact is, our situation has only become worse since the initial collapse began in 2007. Most recent signs indicate we may soon return to the hyper-volatility we saw in the Dow back in 2008, but this time, the Dollar will follow the plunge of stocks instead of hedging against it.

Key measurements of credit instability are once again spiking, just as they were before the Dow plummeted out of control in 2008. As you can see from the chart below, 2 year swap spreads slowly rolled above 60 basis points just before the Dow began to plunge:

This year, 2 year swap spreads have rocketed up from 9.6 basis points in March, to as much as 64 basis points in May! That’s a seven fold increase in the span of a couple of months, unlike the collapse of 2008, which saw spreads rise much slower:

Credit swap spreads rise when banks charge higher premiums. Banks charge higher premiums when they do not trust the creditworthiness of other banks. Corporate bond sales have fallen to the lowest levels in a decade:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZWveN7GJtks&pos=7

The swap spread chart is basically a red flag that goes up when banks are preparing for serious market turmoil. It seems as though that turmoil may be near due to the explosion in swap spreads in such a short period of time. You can read more about swap spreads and their warning signs here:

http://www.moneyandmarkets.com/credit-crisis-indicators-going-bonkers-again-batten-down-the-hatches-39253

The warnings behind swap spreads are substantiated by the behavior of U.S. stocks in May, which had the worst profit losses since 1940:

http://www.bloomberg.com/apps/news?pid=20601087&sid=apgUzNgFGKLA

Private wages have sunk to historic lows, while government welfare payouts have risen to historic highs. This is a sure sign of an economy that is about to flop on an epic scale:

http://www.usatoday.com/money/economy/income/2010-05-24-income-shifts-from-private-sector_N.htm

Mass layoffs in April also reveal a rather ironic problem. Ever since the bailouts began, establishment heads have been playing up the “advantages” of inflation, claiming that America would soon return to a stronger industrial base and that more factory jobs were on the way. However, a recent measure of mass layoffs by companies shows that widespread job cuts were led by manufacturers who shed workers even as the economy was supposedly in the midst of recovery!

http://finance.yahoo.com/news/April-mass-layoffs-rise-led-rb-2636770438.html?x=0&sec=topStories&pos=2&asset=&ccode=

This means that there is no growth in industrial jobs, and the hypothetical plans and promises of the pro-inflation crowd bear little-to-no weight in the real world.

The unemployment issue is also liable to be exacerbated in the next month, largely due to the expiration of government unemployment benefits on June 2nd. The Senate is not even set to convene discussion on extensions until June 7th, after Memorial recess. The fact that they refused to handle the matter until after benefits have already expired may suggest that they do not intend to extend unemployment at all. Millions of people who have remained unemployed for long periods due to the recession could lose benefits all at once:

http://www.mlive.com/michigan-job-search/index.ssf/2010/05/senate_to_go_on_recess_without_extending.html

State And Local Signals

The big story in state and local markets is municipal bonds. Investment in local debt has completely dried up. States and cities across America are amassing impressive budget shortfalls in record time. California as a whole is best known for being on the verge of debt default, but little do we hear about individual towns and counties within California that are already talking about filing for Chapter 9:

http://www.time.com/time/business/article/0,8599,1991062,00.html

http://www.reuters.com/article/idUSTRE64Q6CQ20100527

California is not the only state with cities on the brink. The National League of Cities has reported that U.S. municipalities will come up short on debts to the tune of up to $80 billion:

http://money.cnn.com/2010/05/28/news/economy/american_cities_broke.fortune/index.htm

According to the Economic Policy Journal, 32 states are now technically bankrupt, and are borrowing money from the Federal Treasury just to keep up with unemployment benefits:

http://www.economicpolicyjournal.com/2010/05/32-states-have-borrowed-from-treasury.html

What we are looking at appears to be a snowballing implosion of municipal funding, starting small with cities and counties one by one filing for bankruptcy until a crescendo of debt default is reached, resulting in the breakdown of state governments, making them totally reliant on fiat from the Treasury and the Federal Reserve just to function. This is yet another opportunity for hyperinflation to fester.

We might think of corporations as international and not local, but since corporate chains now dominate local economy, it is important to consider them in a local light. Municipal Bonds are not the only train wreck in progress. As we mentioned above, corporate bond markets are also now frozen. This could lead to a whole host of financing issues for corporations, not to mention even more downsizing and job losses.

Wal-Mart is one example of a major corporate chain that is ingrained into the financial root of most communities (for good or ill), and it is also an example of a chain at risk:

http://money.cnn.com/2010/05/20/news/economy/consumer_retail_walmart.fortune/index.htm

When the sales of a monstrous price undercutting consumer outlet like Wal-Mart start slipping, then we are in serious trouble.

There are only two cures for the current debt landslide we are now in the midst of. States and cities could make radical cuts in spending and put new programs on hold until the crisis has passed. It is highly doubtful our government officials will suddenly take on a fiscally conservative approach at this late juncture. The only other option is to raise taxes to levels never before seen and print money out of thin air to pay off debts (the most probable scenario). Printing money does little to actually solve our insolvency issues, though. It does not remove debt, it just reallocates it. By injecting fiat into state economies and corporate banks, we only move debt from the local and state sector to the federal sector, not to mention devalue the Dollar itself. Higher taxes would also squeeze the American consumer (the lifeblood of our 70% consumer based economy) even further, ending what little chance we had left to rebuild Mainstreet.

These factors and many others that have arisen in the past 6 months do not demonstrate a financial system that is catching its breath and climbing from the depths, but one on an erratic ride tethered like a daredevil to a frayed bungee-cord; eventually, things are going to snap, and the ride will end…

Neithercorp Press – 05/23/2010

Every culture in history has had innumerable difficulties and imbalances, some of them due to a lack of understanding amongst the populace, and many others due to corruption in government.  Human beings have been dragging themselves out of the muck over and over again for centuries.  The struggle for a better world, a world that meets the standards of our inherent conscience, has always demanded overwhelming labor, bravery, sacrifice, logic, wisdom, and sometimes even genius.  And through it all, it has been those men who sought to be truly free that were able to contribute most to the betterment of the human condition.  Not just those who are politically free, but also psychologically free.

For many of us, the need to honor and even surpass the accomplishments of those who came before is absolutely tantamount to our success as a species.  However, there are many who see the concept of ‘hard work’ as an anathema, a mental “disease” that has left our society running in circles towards a hazy and undefined future.  These people believe that there must be a simple solution to all our ills, and if the majority of us weren’t so “stupid”, we would see it as plain as the wide blue sky.

For the ancient Romans, it was assumed that an ever expanding empire and the subjugation of all peoples would cement their legacy, creating a perfect society.  For the medieval feudal kingdoms, religious centralization and dominance was the answer.  For the British Empire, the forced insinuation of Western culture into “barbaric lands” was meant to “enlighten” the planet.  For Soviet Russia, the purging of free thought and the repression of individualism in exchange for collectivism and the advancement of a vaguely defined “greater good” was going to radically progress mankind.  For Nazi Germany, it was the purging of those seen as a “hindrance” to biological success, the idea of racial purity, which was going to revolutionize our species.  In every case, civilization turned from the ‘great work’ of understanding, individual awareness, and personal liberty, towards offers of what they saw at that time as the easy way out, the secret that would save us all the trouble of coming to terms with ourselves.

Today, we face the broad promotion of yet another “magic solution”, one that some claim is, of course, the only way out of our dire circumstances.  The supposedly inspired stratagem I speak of is ‘World Government’.

Members of the elitist class and their cheerleaders have been calling openly for global governance (what they sometimes call the “New World Order”) for the past century.  Adolph Hitler, H.G. Wells, Trotsky, James Warburg, Senator William Fulbright, Richard Nixon, Henry Kissinger, George H.W. Bush, Bill Clinton, British PM Gordon Brown, French President Nicolas Sarkozy, Brazilian President Luis Silva, are only a few of the prominent world figures who have openly supported the end of national sovereignty and the formation of a centralized financial and political global governing body.

Only in the past few weeks the Director of the IMF, Dominique Kahn, has called for global oversight and control of all economic activity and even the institution of a global currency as a way to stop financial instability:

http://www.businessinsider.com/head-of-imf-calls-on-member-states-to-give-him-global-oversight-of-the-financial-system-2010-2

http://www.imf.org/external/np/speeches/2010/051110.htm

And Barack Obama has called for the formation of a new “International Order” to deal with the threat of “extremism”:

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/22/AR2010052201586.html

In this article, we will examine the propaganda and ‘group think’ responsible for the prominence of the World Government concept in the general populace, as well as the many reasons why the notion is implausible as a solution to ANY problem whatsoever.  When placed under an objective microscope, the effective practicality of the globalist ideal disappears, and this begs an important question; with the obvious flaws and destructive nature of extreme centralization, why would anyone sane support it?

More Government Makes Us “Safer”?

Ever since the Code of Hammurabi, structured society has believed faithfully in the necessity of law.  In those days, laws were assumed to be passed down from the heavens, and the Gods were the ultimate arbitrators.  Governments asserted themselves as the “conduits” of divine judgment, and thus publicly accepted moral determination became centralized into the hands of an elite few.  Very little has changed in the thousands of years since.  People today still see written law as absolutely essential to maintaining civilized behavior, and government as the irreplaceable “creator” and steward of order.  In this twisted sort of world view, the idea of continually expanding the power and influence of government is almost an obligation.  If the government is the engineer of law, and law is the binding force of a stable civilization, then wouldn’t more government and more law make all of us safer and more ethical?

The error in this way of thinking lay in the fact that “law” is ultimately NOT a determinant of moral judgment, nor is government.  Law is an afterthought.  Words scribbled on paper, and nothing more.  True morality is inborn, universal, determined by the force of conscience, and tempered by the even hand of rationality.  It is conscience that resolves what we as individuals are willing to tolerate as law, and what we are not.  No law can stop a man from doing something he deeply believes is right.  And, no law can constrain a man from ignoring his conscience and committing terrible acts.  In the end, government has little to no power over decisions that lay in the hands of individuals, and therefore serves little to no role in the day to day balance of society.  In truth, a world of fully self aware and free thinking men and women would render the very notion of centralized government mute.

The only real use of government is not to lord over citizens’ choices, but to safeguard an atmosphere in which individuals are able to make decisions for themselves without the obstacles of despotic or collectivist totalitarianism.  This is why the Constitution as a “legal” document is so ingenious and as an event, so vital.  It was really the first time in history that government was not the primary arbitrator of law.  The common man became judge and jury, mediating what was right and honorable, from that which was course and unethical.  The Constitution was the first document to hold government itself to a moral standard of conduct, making it subservient to the demands of the people.  For the first time ever, the Western establishment was decentralized, and personal liberty was given primacy over the mechanizations of bureaucracy.  This accomplishment cost years of war, blood, and sacrifice.

However, even the Constitution as written law is not eternal without the fortitude of the American conscience.  It is not the Constitution that safeguards each of us, but we who safeguard the Constitution.  Yet again, law does not make man, man makes, or breaks, law.  This fact is lost on many people today.  Centralization seems to be the answer to everything.  Global governance is touted as the cure for war, terrorism, economic volatility, environmental catastrophe, overpopulation, religious “conflict”, even unhappiness and menial labor!  But rarely do we hear any explanation as to how world government would actually solve these issues.

World government is in itself a GOAL, not a SOLUTION.  Solutions involve a reasoned and well thought out process, a schematic for the achievement of a goal.  I have yet to see anyone outline the methods by which world government is supposed to save us from the imbalances and injustices of society, I have only seen elitists and useful idiots make promises they have no intention of keeping.

People are easily duped by such promises for reasons that are rooted deep in our collective psyches.  Human beings tend to search for the path of least resistance, and if the opportunity arises to defer personal responsibility to an imposed authority, they often jump at the chance.  This is especially true in cultures infantized by the elevation of superficial desire over practical necessity, or cultures that confuse self-centered behavior with self-aware behavior.  Essentially, certain segments of the population have an inclination towards mental and emotional laziness.  Surrendering the responsibility of their own destiny and their own development to government gives them comfort, much like a well fed house pet.  This feeling of safety, though, is entirely an illusion…

There is no example in the history of human endeavor which supports the theory that more dominant government makes us safer, or allows us greater freedom.  No ancient empire ever placed the concerns of the common man over the concerns of the establishment aristocracy unless the common man became a threat to their immediate power.  Greek city states such as Athens had only the semblance of democratic self-rule, which was controlled by a minority of those lucky enough to be designated “citizens”.

Modern examples of government expansion are no better.  The British Empire enslaved entire civilizations in the search for centralized global power.  The Soviets under Stalin murdered tens of millions in an effort to centralize.  Hitler did the same.  Communist China under the collectivist fervor of Mao Tse Tung engineered the deaths of 15 to 20 million innocents, and endeavored to use the ‘Cultural Revolution’ as a tool for erasing the very history of the Chinese people.  To this day, China is a cesspool of authoritarianism which oppresses and murders citizens to maintain government ascendancy.  The European Union, supposedly the model for global governance, has attempted to control numerous personal aspects of daily life, including surveillance of all web and phone traffic in some countries, and even what vitamins people are allowed to take!  It is also in the midst of economic collapse, with their common currency, the Euro, hanging by a thin thread; hardly an example of the effectiveness of globalist philosophy.

The United States itself is on the edge of implosion due to unprecedented growth of government.  George W. Bush tripled the size of the Federal Government during his tenure, and constructed legislation which if activated allows the Executive Branch to assume de facto administrative control (martial law) without any oversight from Congress or the citizenry.  Barack Obama has fully supported these measures and has now indebted the American taxpayer by more than all other presidents combined!  Our debts are so great that the private Federal Reserve now continuously prints money out of thin air just to keep the infrastructure of this country breathing.  Never have I been confronted with anyone who could give me a well reasoned and logical illustration of how America is better off because of expanded government.  For every self proscribed advantage, there are a dozen disgraces.

Misleading terms like “harmonization” are thrown about by globalists as a way to rename old and failed strategies and promote further centralization.  Economic equality especially is a favorite pledge of world government proponents, but what does this really mean?  If the EU is any indication, harmonization means that everyone must become equally poor.  Even in a grand futurist pleasure dome, someone is always going to have more than you.  Someone is always going to have something that you want but can’t get.  Artificial financial equality is not possible.  The drive for it has done nothing but erase the middle class and make all nations similarly unstable, which may have been the goal all along.

If focusing authority into fewer and fewer hands deals us such dreadful results on a national scale, why would anyone believe that our plight would be any better on a global scale?  Giving government extreme oversight into personal lives has made no society safer.  Freely handing over civil liberties has made no society safer.  Handing over individual responsibilities to authoritative bodies has made no society safer.  If anything, these strategies have only placed humanity in the most acute peril.

Utopianism, Idealism, And Cartoonland

The “perfect world” is a delusion driven by hubris and naivety.  Those who promote Utopianism often presume that their version of social edifice is somehow unique and that the vast majority are too ignorant to grasp the “brilliance” of their methodology.  I can’t count how many times I have confronted a Utopian and asked them to outline the specifics of how their perfect world would actually function in a practical way.  In every case they cite goals instead of solutions, like “we will end war, get rid of money, no one will have to work hard, everyone will be fed, and energy will be infinitely abundant.”   This all sounds quite marvelous, and certainly a world such as the one they describe would be a never-ending Disney vacation, but where is the plan?  How does one get from point A to point Z?  When asked to actually describe the manner in which globalists and Utopians hope to achieve the world they fantasize over, they usually respond indignantly, accusing you of being “too narrow minded” to understand their idea.  Basically, they are implying that they know better for you than you do for yourself.

It is one thing to be passionate over an ideal, and another thing to be blindly obsessed.  Imagination is one of the primary keys to progress, but so is sensible application of imagination in the real world, which does not always operate in the way we want it to.  Life has its own rhythm, culture its own current, and this must always be taken into consideration when trying to assert our view upon our surroundings.  Human beings operate most effectively in an atmosphere of diverse thought.  In a centralized system with a single minded philosophy, our principal development becomes stifled and we suffocate.  In most circumstances, forcing the issue of centralization creates unnecessary and severe conflict that poisons every aspect of a population.  That is to say, an ideal cannot function unless it adapts suitably to our nature.

Globalists brazenly ignore the issue of human nature, sometimes claiming that such a thing does not even exist.  The reason being that inherent human nature is a factor they cannot control, an inconvenient monkey wrench caught in the gears of their flawless machine, grinding everything to a halt.  Our inborn desire for sovereignty in all things is one good example of an instinctive quality that defies “management”.  We as individuals do not want freedom, we DEMAND freedom, or risk losing our very sanity.  In the world of Global Government, however, instincts and intuition must be suppressed and the masses must be molded towards principles that defy our character.  In order for overt centralization to succeed in any way, the integrity of the people would have to be eradicated and replaced with fabricated and submissive ethics; passive swarms following a hive mind, all in our best interests of course.

For elitists or anyone else to even consider that this is an acceptable future for our species is wildly and inspiringly absurd.  The level of idiocy and arrogance that could drive a man or a group of men to believe they can bend not only society but the human spirit to their will must surely be astonishing.  Not only is it not possible, it is also grotesquely bizarre and cartoonish.  The decidedly insane often fancy themselves as godlike, and the Elites are prime examples; Mad Hatters parading as intellectually superior ideologues.

Leaders And Followers

All men begin life searching for a path.  Some never find their own.  Some desperately cling to the paths blazed by others, even when those paths become dangerously wretched.  In the absence of foresight, we look for leaders.  Leaders provide the advantage of direction, and for some this is enough, but at the cost of individual experience.  Once again, we try to avoid the struggle of finding our own direction, and the hardship and pain of making our own decisions.  Some of us find the thought of personal failure unbearable.  Better to follow someone else and blame them for any shortcomings in ones environment or ones existence.  Some of us project those qualities we think we lack onto others and elevate them, turning them from imperfect people into faultless symbols.  Some of us simply lose interest and stamina for the fight, roll up into a ball, and become numb to our own weaknesses.

There are indeed great people in this world that cut through the fog and give us a glimpse of a wiser tomorrow, but the efforts of these teachers are in vain if we do not push forward on our own strength.  We must become the leaders we once searched for and idolized.  We must stop waiting for others to define us, and begin defining ourselves.  Each and every man must become his own guide.

The concept of world government plays heavily on our fear of taking responsibility for our own providence.  It seduces us with assurances of ease, security, and luxury; things that no government regardless of its size can guarantee.  Government in general is only an organization of mere citizens, many of which see themselves as vastly competent and righteous compared to the rest of us, but in contrast are usually rather frail, inept, or downright vile.  When we follow the mandates of government without question or conscience, these are the men we are bowing to.  It is difficult enough to counter this stupidity and corruption in a single nation, let alone the entire planet.  Global Government would act only to insulate the Elite further from accountability and justice, as increased bureaucracy is designed to do.  Sovereign states may not be the picture of social health, but they do have the advantage of disconnecting world cultures from adopting a singular and destructive mindset.  Diversity in societies helps promote diversity in ideas.  Not to mention, helps to protect the world from systematic failures and calamitous chain reactions.

This is why borders and nations are necessary.  Not so much to keep peoples separate, but to give possible sanctuary to vibrant ideas and values.  To prevent a single overpowering entity from shaping or squashing those who disagree with its self-serving directive.  To provide nurturing ground for a new way of living without having to ask permission from the rest of the world before hand.  For the possibility that we may finally reach the definitive state of sovereignty, a world in which every individual takes his destiny into his own hands and lives fully, becoming aware, honest, and courageous, and in the process, improving humanity as a whole.