Money is the Root of All Evil
January 1, 2003
Money is the root of all evil. So few know how to use it both wisely and for good purposes instead of seeking more power. I like money just the same as the next person, but its what people do with money that counts and these two postings will, I hope, shed some light on the truth about the money/power brokers destroying our Republic.
THE STATEMENTS OF GREENSPAN AND BERNANKE CONSTITUTE A WATERSHED EVENT
By Dr. Richard S. Appel
Dec 23 2002
THE FATE FOR GOLD AND THE U.S. DOLLAR IS SEALED
Shortly after Alan Greenspan s momentous statement regarding the methods that he would employ to overcome deflation in our country, Federal Reserve Governor Ben Benanke elaborated on a number of other possible means to achieve that end. I believe that the statements of both Greenspan and Bernanke have announced to the world the direction that the U.S. will follow should our economic decline worsen. If as I believe, a further deterioration of the U.S. economy is inevitable, the Federal Reserve s future plans have sealed the fate for gold, silver and the dollar.
In mid-November, Greenspan stated that, "there's virtually no meaningful limit to what we could inject into the system were that necessary". He commented that he would release unlimited dollars into our banking system by acquiring among other things, long term Treasuries if he deemed it advisable. About a week later, Governor Bernanke confirmed and reinforced Greenspan s testimony. He stated that, "the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services." He went on to say that, "If we do fall into deflation, however, we can take comfort that the logic of the printing press example must assert itself, and sufficient injections of money will ultimately always reverse a
Governor Bernanke continued and described the various methods that the Fed could utilize in order to inject liquidity in the banking system. Among these, in addition to acquiring Federal backed debt such as Ginnie Mae securities, they could purchase "foreign government debt, as well as domestic government debt". He continued with; "the Fed does have broad powers to lend to the private sector indirectly via the banks, through the discount window. Therefore a second policy option, complementary to operating in the markets for Treasury and agency debt, would be for the Fed to offer fixed-term loans to banks at low or zero interest, with a wide range of private assets (including, among others, corporate bonds, commercial paper, bank loans, and mortgages) deemed eligible for collateral".
Bernanke then turned to the government s fiscal policy options that could complement those of the Federal Reserve. "Of course, in lieu of tax cuts or increases in transfers the government could increase spending on current goods and services or even acquire existing real or financial assets. If the Treasury issued debt to purchase private assets and the Fed then purchased an equal amount of Treasury debt with newly created money, the whole operation would be the economic equivalent of direct open-market operations in private assets."
These statements were meant to quell the mounting concern that had been seriously undermining both our economy and the stock market. I believe that they were intended to convince our citizens that the government was in control and would prevent a damaging economic downturn. And, for the average American, I believe their efforts were at least temporarily successful.
Had these statements not traveled beyond the boundaries of the United States, Greenspan and Bernanke would have achieved their end. However, given the existence of instantaneous, global communications, the eyes and ears of the world community immediately focused upon the U.S., and the threat to the value of their mountain of dollar and U.S.Treasury holdings.
Picture yourself as a foreign banker, fund manager, central banker, or any of a number of individuals controlling substantial wealth. Remember, the U.S. dollar is the reserve currency of all of the major nations, and our Treasury Paper is held as their major asset, representing upwards of 75% of their reserves. Further, an enormous amount of foreign wealth, the Arabs included, is invested in these U.S. Treasuries and dollar accounts. How would you react if you learned that the most powerful person in the U.S. was prepared to issue an unlimited amount of additional dollars? Wouldn't you reason that these new dollars would cheapen those that you held and others that were already in existence? Wouldn t you feel some level of fear that those dollars owed you, or owned by you, were destined to depreciate in value? Wouldn t you feel betrayed by a nation in which you had invested so much of your hard earned money? Wouldn t you be angered by the fact that the Federal Reserve was unconcerned about maintaining the integrity and value of the currency which they had convinced you, that they would forever protect?
I believe that numerous foreigners experienced the above observations and feelings! Further, I am certain that many of these individuals have already begun to protect themselves. And, their first actions were to begin liquidating dollars and to acquire gold.
For the past few decades our nation has benefited from the generosity of the other nations of the world. Instead of demanding real payment, in the form of goods and services for sending us their products, they were convinced into accepting our Treasury Paper and dollars in return. As our balance of payments deficits soared, instead of acquiring our merchandise and services they were satisfied in receiving our IOU s in the form of dollar credits or our government's paper. Now, they are told that we are prepared to arbitrarily issue an unlimited amount of dollars, thereby reducing the value of those hard earned ones that they had toiled and sweated to acquire.
We have heard of various reasons why gold has finally broken above $330, after a five year period in which it traded below that price. We are told that it was because of the threatening war with Iraq. We hear and read that it was due to the declining dollar, or the great gold derivative short positions, or the rising price of oil. All of these factors have set the stage for gold s rise, and would have contributed to its eventual penetration of $330, but they were not the triggering event.
Contrary to Greenspan s likely belief that he could forever fool the world s citizens, his and Bernanke s statements have sent a powerful message. Within a few short weeks, the meaning of their announcements were quickly understood and acted upon! Foreign governments and individuals have begun the long process of reducing or eliminating their dollar or Treasury holdings. Despite statements of "our strong dollar policy" from our politicians, foreigners now recognize that the dollar is destined to decline in value. They have been irrefutably told by our central bankers that further declines in our economy or a derivative melt-down will be met with the wholesale creation of dollars. After all, our nation is poised to create new dollars at "virtually no cost" to us!
Many foreigners will hope, and some will pray, that the U.S. economy will recover and the derivative problem will go away, or at least be held off into the future. It is not certain that the Fed will perform as Greenspan and Bernanke have stated. Perhaps the economy will muddle through for quite some time without a serious recessionary threat or a derivative disaster. However, those who are the most astute will move into action before it is too late for them. They have already read the writing on the wall. They realize that they are at great risk and will sell their dollars and acquire gold, silver, various commodities, and other items of tangible worth. They will jettison their U.S. dollar holdings as if they were the plague! Later, an increasing number of people will follow in their footsteps. This will increase the magnitude of gold s rise and the dollar's decline as these events unfold. Greenspan and Bernanke have finally awakened the world to the fact that they are about to sustain serious dollar losses. And, the first of the world s citizens have loudly heard their messages and have begun to protect themselves by acquiring gold.
I believe that the die has been cast for a substantial rise in the price of gold, silver and virtually all tangibles! Further, we are witnessing the early days of what will likely become the most severe dollar decline in the history of the United States. It is potentially destined to pale that which occurred during the decade of the 1970's.
Further, it is likely that the Fed is already intervening in the bond market. This is the reason that despite predictions to the contrary from the various bond experts, the bond market refuses to decline. If this is the case we will likely experience surprising, continuing bond strength. This will result despite a falling dollar, the further burgeoning of balance of payments deficits, a weakening stock market, and the unprecedented low interest rates which would normally precipitate a sell-off in bonds.
A few days ago, on December 19, Alan Greenspan mentioned gold in a speech before the Economic Club of New York. His comments portrayed gold in a light from which our nation s politicians have shied for over a generation. He began his speech by stating that, "Although the gold standard could hardly be portrayed as having produced a period of price tranquility, it was the case that the price level in 1929 was not much different, on net, from that of 1800. But in the two decades following the abandonment of the gold standard in 1933, the Consumer Price Index in the United States was doubled. And, in the four decades after that, prices quadrupled. Monetary policy, unleashed from the constraint of domestic gold convertibility, had allowed a persistent over-issuance of money".
Greenspan continued by stating that, "But the adverse consequences of excessive money growth for financial stability and economic performance provoked a backlash. Central banks were finally pressed to rein in over-issuance of money even at the cost of considerable economic disruption. By 1979, the need for drastic measures had become painfully evident in the United States. The Federal Reserve under the leadership of Paul Volcker with the support of both the Carter and Reagan Administrations, dramatically slowed the growth of money. Initially, the economy fell into recession and inflation receded. However, most important, when activity staged a vigorous recovery, the progress made in reducing inflation was largely preserved. By the end of the 1980's, the inflation climate was being altered dramatically".
This was the first public statement form a high U.S. political official in decades, that recognizes the importance of gold as a stabilizing force for a monetary system. The fact that Greenspan opened his speech with these words indicates the magnitude of importance that he placed upon the world hearing these words. He chose to begin his comments with this topic. He could have buried it within the text knowing that most people would have been confused, glazed over, and dazzled by his rhetoric by the time that he uttered the statement. He wanted people to hear him!
This is a watershed event! Is Greenspan preparing us for an eventual reentry of gold into our monetary system? He is un-hedged in his comparison between 1800 and 1929 and the 60 years that followed. Under the gold standard prices were stable for 129 years, but rose eight-fold in the 6 decades after the discipline of gold was removed and the gold standard was abandoned. His later statement regarding the effects of the institution of monetary restraint after 1979 is also telling. His comments pertaining to the result that occurred, after the money growth slowed and the initial recession ended and the economy staged a vigorous recovery lead me to believe that he is tacitly recommending this action!
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© 2002 by Dr. Richard S. Appel. All rights are reserved. Parts of this newsletter may be reproduced in context, for inclusion in other publications if the publisher's name and address are also included for credit. Dr. Richard Appel, PO Box 791 Oakhurst, NJ 07755
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If you aren't sure about how to interpret this information or would like to learn more about gold and how to protect what you've worked hard for all your life, please call Harvey Gordin at USA Gold Vault- 602.228.8203. No pressure and you'll learn from someone with over thirty years experience on Wall Street why diversifying at least part of your portfolio into gold is the smart thing to do. No one is more competitive than USA Gold Vault :
Gold doesn't lie and it's the only real money on this earth.
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Alan Greenspan, Chairman of the U.S. Federal Reserve Board, was knighted (honorary) by Queen Elizabeth on September 26 2002. Contrary to popular lore and conspiracy theories on the Internet, because Greenspan is not British, he will not be able to call himself Sir Alan, but he will be able to use the letters KBE after his name. KBE stands for Knight Commander of the Order of the British Empire.
This brings me to recommend a book that's an absolute must read (104 pgs): The Empire of "The City" - the Jekyll Hyde Nature of the British Government by E. C. Knuth (1944). This is a fascinating book; from the Intro:
"At the end of WWI, the writer, then 27 years old, was released from the U.S. Army as a second lieutenant of the Coast Artillery Corps. Like many more servicemen, he was filled with resentment as the deluge of utterly obvious and brazen falsehood, by which participation in that war had been forced upon the American people, was exposed, and became more evident day by day after the war was won.
"That the reasons advanced to the american people for their entry into WWI were largely fraudulent became common and accepted knowledge, and over 25 years after the end of that war the eminent American historians Charles A. and Mary R. Beard, stated in their "Basic History" (page 442) that "the gleaming mirage that pictured the World War as purely or even mainly a war for democracy and civilization dissolved beyond recognition..," and the well-known Internationalist publicist, Walter Lippmann, stated in his "U.S. Foreign Policy" (page 24) in effect that the real reasons for going to war in 1917 have never been admitted.
"Many people realize that this mystifying situation, in which an alleged democratic and self-governing nation is actually controlled against the will of the people in its foreign affairs, is a clear indication that there must be a very powerful and well-financed secret organization which plans and directs American foreign affairs, and for lack of a more specific identification this suspected secret organization is popularly referred to as the International Financiers.
"When the propaganda mills began their characteristic grind towards war in the early 1930s, the writer began a more definite study of international power politics, and soon found it an entrancing and revealing subject. There was, however, no more free speech; and the most amazing documented aspects of a vast secret world order of International Finance could find no hearing in a situation where some Congressmen denounced overwhelming Nationalist expression of views in their mail as mere organized subversion.
"The shelves of our public libraries hold thousands of books pertaining to some aspect of this vast subject; most of them dry as dust to the average reader and remaining unread by the public through the years. Most of these scholarly works are devoted to some passing phase of power politics in some part of the world, of which their author has made a specialized study, and have invariably been forgotten as the public has lost interest in that particular incident.
"In running though these works some amazing nuggets of information come to light here and there, which fitted together gradually unfold the sunning history and the legal structure of a sovereign world state located in the financial district of the loosely knit aggregation of burroughs and cities popularly known as the city of London. The colossal political and financial organization centered in this area, known as "The City," operates a super-government of the world; and no incident occurs in any part of the world without its participation in some form.
"Its pretensions are supported in the United States by the secret International Pilgrim Society, sponsor of the Cecil Rhodes "One World" ideology which was launched about 1897. The president of its American branch is Dr. Nicholas Murray Butler, who is also president of the allied Carnegie Endowment for International Peace. The ultimate objective of this camarilla was defined by one of its noted propagandists, the late William allen White, as "It is the destiny of the pure Aryan Anglo-Saxon race to dominate the world and kill off or else reduce to a servile status all other inferior races."
"After reducing the vast mass of data forming the basis of this work into a logical and readable sequence, it was finally put into print and privately published after long delay, and copyright was granted may 22, 1944. About 200 copies were sent to various members of Congress, thus largely performing the purpose of the first edition. Several members of the Senate Foreign Relations Committee accorded some attention to this.
"Senator Henrik Shipstead of Minnesota wrote August 12, 1944: "The document containing the result of your research was so interesting that it spoiled most of my sleep that night...I have been doing some research along the same lines and I find my time in that respect is limited. You have done a great deal of work that will save me a great deal of time." On August 21, 1944, he wrote: "People ought to be induced to read it. It is a documented piece of work and therefore should comment respect and arouse interest.
"This work apparently appeals most strongly to men of professional standing, and to people of the elder generations, and a number of lawyers, doctors, clergymen, architects and engineers of the writer's acquaintance have expressed their great interest and apparently general commendation. Publishers approached have been reluctant to undertake it, and several stated that there would be little demand for a serious work of this kind, as the american public is not interested in that kind of reading matter. One large Eastern publisher frankly wrote he was obliged to disregard the recommendations of his readers on advice of counsel.
"Chapters I and XI, and the Conclusion, are new additions to the second edition of "The Empire of the City." Chapter XI, "A Study in Power," was published separately and copyrighted February 22, 1945"
(You can acquire this excellent little book from Emissary Publications, 503-824-2050)
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The statements made about WWI above sadly also apply to WWII. As time has gone by, the same has held true for WWII: The American people at Pearl Harbor were slaughtered with the knowledge and approval of FDR to drag America into a war the people did not want to fight. Right now we are on the brink of again needlessly sacrificing American blood in Iraq to satisfy the agenda of the world masters. Time will prove the accuracy of this statement as it has with WWI and WWII.
As I watch the party faithful, both Republicans and Democrats, go through their cycles of rah-rah elections, worshipping and adoring the same old liars and crooks who serve in public office, the only thought that comes to mind is that I am watching a nation commit suicide because they refuse to open their eyes and see evil in it's truest form.
Back in 1935, amid the flurry of legislation by the damned FDR (Employment Relief Act, Works Progress Administration, Civilian Conservation Corps, Social Security) , Arthur Henning of the Chicago Tribune said, "The New Deal will bring the Communist Party within striking distance of overthrow of the American form of government..."
In the same year, Mark Sullivan of the Buffalo Evening News was even more alarmed when he said, "This may be the last presidential election America will have. The New Deal is to America what the early phase of Nazism was to Germany..." How prophetic. After 1960, fair and impartial elections became a myth.
Also in 1935: the Department of Justice fingerprinted John D. Rockefeller, Jr. to publicize its campaign for a national fingerprint registration law. That memorable year also saw for the first time, a sitting president, FDR, appear before a joint session of Congress to explain his veto of a bill providing WWI veterans with the remainder of their 1924 bonuses. Doesn't that just have a familiar ring?
By 1935, the people of America were beat into the ground by the deliberately created "Crash of '29" and were very vulnerable to manipulation by shrewd and evil politicians.
Things aren't much different right now in our history. 9-11 was the opening needed to really put the plans for a one-world totalitarian government into hyper-drive.
Back in 1935, the people, in masse, turned to Monopoly, bingo and the movies to help alleviate the pain and uncertainty of their tomorrows. Today, Americans are drowning in sports, booze, drugs and pornography to escape the truth.