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 attempt to condense the week's events and examine how the news might affect your pocketbook. - JSB

As I spend most of my waking hours pouring over economic news from all four corners of the globe (corners of the globe?) I am constantly faced with one seeming conundrum, after another. The news is filled with illogical acts and deeds by those who, you would think, would know better. Could it be that my judgement is flawed, and they really don't know any better? Or is it , rather, that greed has clouded their senses.

For instance, last week I suggested that the Chinese were going through the process of getting screwed, by JP Morgan, and the Federal Reserve, through their apparent foreclosure on the Chase Manhattan Plaza. How could they be getting screwed? They were, after all, acquiring a $two billion dollar building for just $seven-hundred-twenty-five million. That sounds like a hell of a deal for the Chinese, or maybe not...

I have, for sometime, believed that JP Morgan and the FED were both insolvent, and that, through the transfer of ownership, the banksters, both at JP Morgan and the Fed were, essentially, dumping a huge plateful of liabilities in the laps of their Chinese counterparts, liabilities that far outweigh their questionable assets. I suggested that it might be a clever ploy to "off load" a huge chunk of rapidly deflating collateral (CDOs made up of mortgage backed securities). These were assets whose value had been inflated and misstated from the get go. But, just maybe, the Chinese, having had already been screwed, by accumulating so much American debt, finally realized it, and now they were doing whatever they could to to liquefy their holdings.

The fact that the Federal Reserve could be foreclosed on raises eyebrows of disbelief by many. Most Americans still believe that the Federal Reserve is a branch of the US Government. Wrong...

We do know that the Fed is a private banking group that has been given a monopoly on the creation of US currency, and the list of its owners is a closely held secret.

We are told, by Simon Black, that when Ben Shalom Bernanke took over the Chairmanship of the Fed from Alan Greenspan, that the central bank's capital ratio (net equity divided by total assets) was 3.22%. This means that the Fed would become insolvent if its assets lost more than 3.22% of their value.

That ratio has changed during Bernanke's tenure. It is currently 1.34% and deteriorating rapidly. Given the knowledge that the bulk of the Fed's assets consists of highly questionable collateral, made up of securities that were bought from major western banking institutions, in order to keep all the "to big to fail" banks from going under, one begins to realize that the whole western banking system is already insolvent and on the brink of catastrophic failure. I suspect that the banksters have struck a deal with the devil.

This week, through a dose of Dave Hodges' Common Sense, we were presented with a possible explanation for the actions of the Chinese. Consequently, this explanation portends an ominous situation unfolding:

It is time to connect the dots.

Fact, the American economy is in free fall.

Fact, the Chinese have purchased and hold a large portion of our debt. This debt was defaulted on by the Government last October. The Chinese are about to foreclose on the government.

Fact, An economic crash is likely. if the Chinese do not position themselves to acquire America’s hard assets before the crash, they will be left holding useless paper.

Fact, your house is a hard asset and the paper note is owned by the bank.

Fact, the Chinese not only make your clothes and most of your personal possessions, the Chinese will be calling in the loans on your homes before the crash, once they acquire more of our banks.

Fact, if a person does not think that your home is not at risk of being taken, then that person does not understand basic finance and they have obviously never heard of the MERS mortgage fraud.

Fact, the government has begun stealing everyone’s 401K and retirement plans from their previous allocations and converting them to buying U.S. government bonds and who owns the lion’s share of the bonds? Chinese take-out anyone?

Fact, many have been reporting that Hillary Clinton has been collateralizing American home mortgages, office buildings, land, public holdings and mineral assets to the Chinese so that they will continue, for a short time, to continue to purchase our debt.

Fact, it would be wise to learn Mandarin Chinese so that you can more effectively communicate with your soon-to-be slave masters.

Welcome to the Old West, Chinese Style

Are you familiar with the term “Company Town”? This is a phrase that was primarily reserved for towns in the “Old West” in places like Bisbee, Arizona. The mining company in Bisbee owned everything. The owned the mine where the people worked. They owned the homes where the people lived. They owned the drug stores. They owned the Grocery stores. In short, they owned it all! I fear that this is the new reality under which we will soon be living in which the Chinese will own everything.

One interesting side note has to do with a historical event called the Bisbee Deportation. The event was precipitated by miners who thought they would protest dangerous working conditions and substandard living quarters. The owners of the company town responded to worker demands by forcing the dissenters into trains and then transported the protesters to the deserts of New Mexico and were forced off of the train in the middle of nowhere. In the near future, I do not think the Chinese will transport dissenters to the desert, the new destination will consist of barb wire facing in and the word FEMA will be imprinted on the sign outside the destination.

So, once again, pieces of the puzzle emerge and provide a little more clarity to the situation. China has positioned itself as a major contender to assume global pre-eminence in the years to come. Perhaps the Yuan is about to displace the Dollar as the world's reserve currency. I realize that this transition will not take place overnight , but I worry that this global reset will not be kind to our offspring. Our children's and grandchildren's futures have been squandered by those we have trusted. That trust, it turns out, was undeserved. We have been sold down the river.

Summation of the Year so far...

Okay, so we started out 2014 trying to recognize the relationship that our financial survival has to do with energy. That understanding brought us to the realization that things are not as they seem or have been reported, by the American mainstream media, when it comes to the underlying causes and motives of the various conflicts and skirmishes currently playing out in the Middle East.

We have discussed the threat of the demise of the petro-dollar, the apparent actual cause of U.S. involvment in Syria, an event which will substantially weaken the role and subsequent purchasing power of the U.S. Dollar, and which will obviously have a negative impact on American middle class' cost of living. We were also able to identify as "players" in the attempt to "dethrone" the Dollar's position, in the purchase of petroleum products throughout the world, as being Russia, China, and Iran.

But, as it turns out, Russia China and Iran are not the only Sovereigns who would benefit from abolishing the petro-dollar system. It could be that even Saudi Arabia has found reasons to participate in unseating the American currency as being supreme in the region.

During my research I was introduced to to figures such as Prince Bandar, a Zionist, and the current Saudi Arabian intelligence chief, who has been identified as one of the main conspirators in the World Trade Center bombings (911). He has recently been identified as the person responsible for the recent railway station bombing in Russia, and how those bombings were meant to serve as a forewarning of what was to come during the Sochi Olympic Games, if Putin did not back down on his support of Bashar al-Assad, the President of Syria.

We have explored the relationship that the Federal Reserve maintains with the price of gold and how, through the joint energies of the Fed, the bullions banks (of which JP Morgan is one) and the complicity of the US Government, the price of gold is suppressed through manipulation. We also understand the motives of these institutions when it comes to price suppression which provides the "why" aspect of the puzzle. We also now realize that the Fed, along with the major banks, along with the U.S. Government are all insolvent.

We have discussed the war that is being waged with abandon, on all middle class Americans, and how that is affecting, along with all these other topics, the standards of our lives. The markets have been artificially levitated by the Federal Reserve, and that levitation is about to come to an end. We are now aware of an imminent reset, and that the reset will affect us all.

As I continue to try and "connect the dots' I am increasingly left with the realization that we have been sold out by the Fed, the banksters, and, most despicably, by the government itself. As the Chinese foreclosure process gains purchase, the American taxpayer will be targeted as to primary source of retribution. I'm afraid that those who hold the liens on our National Debt are about to foreclose on us individually.

The Chinese are attempting collect on the debts owed them. They have been left no alternative short of taking over the economy of the United States. When they foreclose on the Federal Reserve they will control the issuance of our currency. When they foreclose on the Federal Reserve, they will additionally take over the operations of the IRS. This, apparently, is not a fact that has just now been realized by the government. Although it has been a carefully guarded secret, they have been planning for this reset for several years. The administration is apparently trying to orchestrate the reset. They certainly don't want the reset to adversely effect their positions of power. They want it to be "smooth". The "smoothness" of the reset will be determined by the amount of, or lack of, resistance that is put forth by "We the People". The PTB are petrified by the possibility that there might be insurrection and "armed resistance". Since the administration has been unable to persuade Congress to invoke draconian gun control legislation, which might prevent "armed resistance", Obama is just about to attempt to disarm the people with "executive orders".

Executive privilege has been abused for many years. That does not make it right. We, as a Nation, have been beset by criminal politicians since the inception of the Republic. Below is a list of the number of Executive orders issued by U.S. Presidents in the last 100 years:

Obama has issued more than 1000+ and counting illegal Executive Orders in 6 years...

If you find this difficult to believe, Google it.
http://www.whitehouse.gov/briefing-room/presidential-actions/executive-orders

The Obama administration is out of control and is not only willfully allowing the take over of America, it is aiding and abetting it. Obama, however, is not the first to willfully defile and subjugate the U.S. Constitution. His predecessors were almost as egregious in their quests for personal power. If truth be told, every president since Kennedy has violated ample laws as to warrant incarceration. As is apparent in the table above, the disrespect for the laws of the land has become critical among the last two administrations. Unfortunately, we have reached the beginning of the end. Even Hillary could not be any worse than Obama.

We are not being shepherded by altruistic wise men, but, rather, herded by megalomaniacal desperadoes. - JSB

Keeping Your Eyes Open...

There are, and have been numerous signs of the arrival of this reset for several years. When I started my prognostications, they were intended to elicit thoughts of solutions. I now realize how naïve I was in thinking I could change anything. The vast majority of the citizens of this country are not the least bit interested in changing anything. I sometimes refer to them as "the brain dead, apathetic minions". Now, my main concern is attempting to provide an economic survival guide for those that still care.

Recognizing the occurrence of the events that I expect will "cause the camel's back to break" are essential to knowing what to do. One thing to look out for is a sudden rise in bond (US Treasury) prices and long term interest rates. Another, and perhaps even more telling will be a bank holiday announced by HSBC, or CITI, or Barklays. These events will signal the overt insolvency of TBTF institutions, and will provide for the initiation of an irreversible domino effect. Any of these things could happen next week...

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 be rising, so 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.