As the editor of the Silver Bear Cafe, I spend most of my time researching current events. I explore the markets, the economic war that is being waged on the middle class, precious metals, the Federal Reserve, energy, and how to go about surviving financially. In this weekly column I will provide commentary, and attempt to condense the week's events and examine how the news might affect your pocketbook. - JSB

"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. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation." - Ben Bernanke

I would like to make an admission. I now believe that I jumped to a partially wrong conclusion several years ago when I thought that I had pinpointed the cause of our economic woes. When I set out on my quest, in the summer of 2000, to find out the truth about the failing economy, and the dissolution of our retirement accounts, I was immediately drawn to the actions and activities of the Federal Reserve. Not coincidentally, it was soon after I had been introduced to G. Edward Griffin's book, the Creature from Jekyll Island (an absolute must read for anyone who has retained the power of critical thought). Through Mr. Griffin's looking glass, I was introduced to the faux science of Keynesian Economics. It soon became apparent to me that the adoption of this truly innocuous, insidious and caustic system was prompted by the purest levels of greed, a greed that was harbored by members of the U.S. House and Senate. The greed was bourne out of the fact that its confounded application provided a means to funnel pork to constituents and thus get re-elected. Re-election was the single benefit. The consequences are so numerous it would be difficult to discuss them all in a single commentary. But I can wax on the main excuse.

Keynesian Economics is a terminal process by which one steals from Peter to pay Paul, and can lead to only one outcome, bankruptcy. It has never worked and it is still not working. it has been shown to be incredibly detrimental to the populace. So why does the government not abandon its application? No one can exhibit one instance through which Government spending stimulated the economy. Government spending stimulates the bank accounts of politicians, bankers and government employees at at dire cost to taxpayers. Where did this perverse system originate?

John Maynard Keynes, a well know pedophile and degenerate, gained favor as an "Economist" in the 1920s, as a result of coming up with a scheme that seemed to lend credence to governmental intervention in the economy. He suggested that when the private economy failed to produce enough demand, the government should step in to take up the economic slack. But his evil genius only surfaced when he married inflation to the process which would provide funding of these so called stimulus projects through theft from the people. This Ponzi scheme continues to be applied and is applauded by many economic predators and/or fools today including Barrack Obama.

"Lenin (the founder of the former communist Soviet Union) was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose". - J.M Keynes

Government spending produces parasites. When government spends, people and companies sit around contemplating how to get the next handout. Instead of looking for a job, people tend to look in the mailbox. Rather than putting their time to productive use finding what people want to buy and selling it to them, companies focus on government grants and cost cutting. The system has become so screwed up that folks in a majority of states can receive more from welfare than the could earn working for minimum wage. In 35 states, welfare benefits pay more than a minimum wage job, according to a new study by the libertarian Cato Institute, and in 13 states welfare pays more than $15 per hour.

Our newest resident Keynesian, Janet Yellen, has announced her desire, like her predecessor, to foster positive inflation. What in blazes is positive inflation? And why would anyone, representing the people, want the price of goods and services to rise? Who, but a banker could benefit from inflation? Inflation equals rising prices. Rising prices equal more loans. More loans equal more interest. The natural evolution of man would have provided for a continuing improvement in the standard of life for all persons, if it wasn't for the heinous contrivance called inflation. Technology has provided new and improved ways to produce and deliver almost everything. Without inflation almost everything would be cheaper, or at least remain the same price. Let me restate that last part. If it wasn't for the Federal Reserve, everything would become cheaper, instead of more expensive. Most people believe that inflation is a natural economic occurrence. This is simply untrue.

The fact is that one of the most seemingly apparent problems caused by inflation is a result of the inability of wages to keep up. This, while true, is also smoke and mirrors. Even if wages kept up with inflation, citizens would continually be forced into higher tax brackets, which would then also reduce the tax payer's standard of living by continually absconding with an ever larger portion of their income, thereby decreasing their purchasing power. It has been exhibited, by the FED, that taxes, like inflation, are quite simply theft. The IRS and the BATF are simply collection agencies for the Banksters. Both agencies have recently been allocated millions of rounds of ammunition. The FED has exhibited the capability to create far more through inflation (the rampant and radical dilution of the currency) than has ever been collected in taxes. And still they complain about deflation. Deflation is the bane of the banksters because it reduces the value of collateral.

The Petro Dollar system is the last bastion of hope the Banksters have for the continuation of the dollar's status as the World Reserve Currency. The World is getting fed up with the current system, which forcibly includes them as targets in the "Great Shearing".

But back to my partially wrong conclusion. I initially thought that the problem was contained by and, as a result, could be confined to a specific group. I have always felt that by first uncovering the cause of a problem it could then be solved. While that is true, it only works if you can uncover the entire cause. In this case, I thought the Federal Reserve was solely responsible. I was wrong. I am finally beginning to grasp the immense scope of the problem. It has (at least in my mind) morphed into a conspiracy of immense proportions.

As I touched on last week, the British Military quit working for "the Crown" by the end of the Napoleonic Wars(1815). This was because Nathan Rothschild had financed those wars and became the central source of the military's budget. The interest on the loans the Rothschilds made to the King exceeded the ability of the British Government to repay. As a result, the Bank of England, under the control of Nathan Rothschild, foreclosed on the government and took it over. In Britain, Parliament has been nothing but political theater ever since. Every war that the Great Britain has been involved in since then has been engineered by the Rothschild family and other banksters in the City of London, for profit. This includes both WW1 and WW2, and several others.

The "City of London" is also firmly entrenched in the "Drug Wars". I have often brought up my suspicion that the U.S. involvement in Afghanistan has as much to do with the poppy crop as anything else. In a recent article by Rowan Bosworth-Davies he recounts his attempt to interview a Mexican Law Enforcement Official at the 57th Session of the U.N. Commission on Narcotic Drugs!:

I tried to engineer a discussion with a delegate from Mexico, a representative of the Mexican drug control agency, but he just laughed in my face.

"...My deluded friend" he said, "...Everybody in this business knows that all the drug money from the narco- trafficantes finds its way to the City of London. Look at the HSBC bank, how they moved all those millions of dollars for the cartels in my country. Why your country did not prosecute them is clear to us, Great Britain does not care where the money comes from, as long as it comes to Great Britain, and no British Bank will be punished for bringing in the drug money. You people did it to China in the 19th century, and now you do it with the rest of the world. .."

Tragedy & Hope: A History of the World in Our Time by Carroll Quigley is the ultimate insider admission of a secret global elite that has impacted nearly every modern historical event.

"During the past two centuries when the peoples of the world were gradually winning their political freedom from the dynastic monarchies, the major banking families of Europe and America were actually reversing the trend by setting up new dynasties of political control through the formation of international financial combines... these banking dynasties had learned that all governments must have sources of revenue from which to borrow in times of emergency. They had also learned that by providing such funds from their own private resources, they could make both kings and democratic leaders tremendously subservient to their will."

"The powers of financial capitalism had a far-reaching aim - nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements [BIS] in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations ... Each central bank sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world." - Carroll Quigley in his book "Tragedy and Hope"

Andrew Gavin Marshall is a 26-year old independent researcher and writer based in Montreal, Canada. He has written for a number of publications, and regularly does radio and television interviews. He is Project Manager of The People's Book Project, head of the Geopolitics Division of the Hampton Institute, the research director of Occupy.com's Global Power Project, and has a weekly podcast with BoilingFrogsPost. His prescience is widely acclaimed. Mr. Marshall recently had this to say about the conspiracy:

"We are ruled, though it may be difficult to imagine, by a small dynastic power structure, largely consisting of powerful banking families, such as the Rothschilds, Rockefellers, and others. They emerged in controlling the financial system, extended their influence over the political system, the educational system, and, through the major foundations, have become the dominant social powers of our world, creating think tanks and other institutions which shape and change the course of society and modern human history."

"There is a transnational ruling class, a "Superclass", that agrees on establishing a world government. The middle class is targeted for elimination, because most of the world has no middle class, and to fully integrate and internationalize a middle class, would require industrialization and development in Africa, and certain places in Asia and Latin America. The goal of the Superclass is not to lose their wealth and power to a transnational middle class, but rather to extinguish the notion of a middle class, and transnationalize a lower, uneducated, labor oriented class, through which they will secure ultimate wealth and power.

The global economic crisis serves these ends, as whatever remaining wealth the middle class holds is in the process of being eliminated, and as the crisis progresses, the middle classes of the world will suffer, while a great percentage of lower classes of the world, poverty-stricken even prior to the crisis, will suffer the greatest, most probably leading to a massive reduction in population levels, particularly in the "underdeveloped" or "Third World" states." - Andrew Gavin Marshall, 'The Global Economic Crisis: The Great Depression of the XXI Century'

I thought I would include a couple more zingers:

"No matter how paranoid or conspiracy-minded you are, what the government is actually doing is worse than you imagine." - William Blum

"The question is not how to get good people to rule; the question is how to stop the powerful from doing as much damage as they can to us." - Karl Popper

So, you might wonder, what has this to do with the Federal Reserve? My contention is that the Federal Reserve, set up by a Rothschild lackey, Paul Warburg, is merely a branch of the Bank of England and, subsequently, gets its marching orders from "the City of London".

From 1913, until 1933, under the authority of the U.S. Congress, the Federal Reserve held control of all of our country's gold. They then proceeded to loan us back our gold, at interest. We paid interest for the use of our own gold! What's wrong with this picture? What could have incited our Senators and Representatives to allow that to happen? In order to keep up with the ever rising debt service, we borrowed more of our own gold. We kept borrowing more and more of our own gold to pay more and more interest, until all the gold was gone. At that point, the country went bankrupt. Guess what happened next.

The bankers foreclosed on America. I know what you're thinking. Me too. Not unlike the Bank of England foreclosing on the British Government, the Bank of England foreclosed on the American Government. On March 9, 1933, the U.S. declared bankruptcy, as expressed in President Franklin Delano Roosevelt's Executive Orders 6073, 6102, 6111, and 6260.

On April 5th, 1933, one month after his inauguration, President Roosevelt declared a National Emergency that made it unlawful for any citizen of the United States to own gold, and "unconstitutionally" ordered all gold coins, gold bullion, and gold certificates to be turned into the Federal Reserve banks by May 1st under the threat of imprisonment and fines. This was technically, a national confiscation of gold and silver. This unlawful precedent set by Roosevelt would eventually lead us to the catastrophic situation we find ourselves in today.

Our bankrupt nation went into receivership and was reorganized in favor of it's creditor and new owners, a private corporation of international bankers. Since 1933, what is called the "United States Government" has been a privately owned corporation, and the property of the Federal Reserve/International Monetary Fund.

Essentially, my point is that I now believe that Baron David de Rothschild, the current patriarch of the Rothschild Dynasty is Janet Yellen's boss, was Ben Bernanke's boss and Alan Greenspan's boss before him. I believe that all Central Bankers, the world over, comprise a cartel which is headed by members of the IMF who in turn answer to the same patriarch. The present administration, as well as past administrations for many years answer ultimately to Rothschild.

All wars in modern day times are being fought over the control of resources either natural or refined. The BRIC nations are not quite on board and are reluctant (read in: bound and determined not) to fall in line. Russia and China are currently in the forefront of the opposition, but Brazil and India are rapidly becoming economic powerhouses as well. China is currently the largest importer of oil on earth. If I am correct, the Rothschild Dynasty (the Darkside) is the ultimate beneficiary of the Petro Dollar System. After all, they are the ones who own the Federal Reserve, and therefore the only ones who are enabled to create this and all other western Monopoly Money.

I further believe that the World is about to pull the plug on the Petro Dollar System and that will result in the immediate debasement of the purchasing power of, not only American Dollars, but British Pounds and Euros and Yen as well. If you knew this was about to happen, what would you do?

Conclusion

You must first realize that there are, present in our lives, enemies. You must then know who those enemies are, and act accordingly.

Eliminate as much debt as possible, especially “variable rate” debt, such as credit cards and lines of credit. Interest rates will eventually rise, which will leave borrowers unable to repay loans. These borrowers include cities, states and countries. Rising interest rates will provide "the straw that breaks the camels back". If you are present, you will be taken down with everybody else. The elimination of debt offers a “real return” of escaping rising rates by creditors.

Get some control over some fresh water.

If you are depending exclusively on Social Security, stop.

Follow the course opposite to custom and you will almost always do well...

Its not what you don't know that will screw you up, it's what you are absolutely sure of that is absolutely wrong. The spin you hear from the mainstream media is intended to mislead you. Open your eyes and face the future. If you leave your head in the sand and ignore it, you are only leaving your butt exposed for the world to kick. This all may sound like gloom and doom, but when you get a handle on what is going to happen, you will have a future filled with opportunity. Fortune favors the Informed.

More next week...

May the Great Spirit be with you always,

Johnny Silver Bear
Chief cook and bottle washer, The Silver Bear Cafe

Disclaimer

All statements and expressions are the sole opinions of the editor and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The staff of Silver Bear Cafe are not registered investment advisors and do not purport to offer personalized investment related advice. The publisher, editor, staff, or anyone associated with, or associated to the Silver Bear Cafe may own securities mentioned in this newsletter and may buy or sell securities without notice.