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

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 conincedentally, 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, incidious 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 constituants 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 ony 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 on 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 pediphile 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 stymulus projects through theft from the people. This ponzi scheme continues to be applied and is applauded by many economic predators today

"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 recieve 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.

For me that was the moment everything changed. There was a deep seated uneasiness within me about being in America. Something was seriously wrong with the world, as I always knew, and was now beginning to manifest itself in extremely obvious ways.

The next decade took me on a wild ride of conspiracy theory, instability, and heartache. Through a "demit" I extracted myself from the Masonic lodge, changed careers, and distanced myself from my family. The desire to find the underlying pattern to everything going on in the world became an obsession. An obsession, I would later realize, that had its seed planted in my early youth.

The conspiracy theory became a large force in my life. A force not unlike gravity I suppose. It sucked everything into its gapping jaws. My curiosity made me helpless and defenseless against its subconscious power. As such, I needed to understand it fully.

The key to understanding the conspiracy theory is to understand the structure of society itself. Every civilization in the history of man is made up of a small group of ruling elitists and a larger group of subordinate workers. It's interesting to note that the small ruling elite does not argue this fact, and yet, the larger mass group of workers do. Ignorance is bliss for only as long as ignorance is an option. Ignorance ceases to be an option for each of us at different times in our lives.

These elite interest groups practise something called rent seeking. Rent seeking is a method of wealth redistribution by spending money on political lobbying to increase ones wealth without adding any wealth to the overall pool of wealth. When no new wealth is created it is pulled from one end of society and redistributed to the small ruling elite end. There are two reasons this happens:

The small elite ruling group has the disposable wealth to spend on political lobbying.

Smaller groups of likeminded citizens are easier to organize, as opposed to the larger disorganized mass of subordinates who are kept divided and without a single purpose.
The ruling elite group accomplishes this rent seeking redistribution of wealth by strategic methods, both direct and indirect.

Direct: Allocation of Resources, Tariffs, Monopolies, and Legislation

Indirect: Restricting Imports, Limiting New Competitors, and Restricting New Technologies

These lists are not exclusive and can be added too or broken down into subgroups and micro/macro patterns.

Whether contested or not, redistribution is almost always the outcome of choice for small elitist interest groups. We also see this pattern amongst the larger subordinate group in the way of promotions at work and the lodge structure of the freemasonic system. Perhaps it's something within our survival instinct. A corruption of the process that we have yet to recognize in the material world. Elite groups cannot see any feasible alternatives to this structure of redistribution.

And yet this rent seeking redistribution system will feed on itself over time as the full effects of its makeup cause economic inefficiency and stifles economic growth and development. This leads to further redistribution and the eventual imbalance in the system between small elite groups and the larger disorganized subordinate group.

I propose that conspiracy theories are born within this imbalance.

Further to this, when elites make decisions that serve their own interests the result is to inflict damage on the society as a whole. Economic centralization and political lobbying have never benefited the poor and subordinate class. It always eventually ends up as a drain on the whole system by way of redistribution and lack of wealth growth and development.

Tell me that this is not what we are witnessing in the world today? Is it any wonder that conspiracy theories are rampant? Left to natural process these theories would develop regardless. But the small elite groups, through a process of social engineering, have deployed what is referred to as the weapons of the weak. They are:

Derision
Gossip
Disobedience
Petty Theft
Withdrawal
Non-Compliance
The elitists know that the subordinate class will eventually develop and use these "weapons" as the redistribution becomes greater and more noticeable. As such, they usurped the weapons of the weak for themselves and have used them against the larger disorganized class as a means of maintaining the disorganization itself. This is where the problem/reaction/solution of the Hegelian Dialectic Triad we have discussed comes in to play. Each weapon is controlled and managed as to disempower the working class of its greatest leverage, which is the threat of not participating in the system of balance which allows the redistribution to continue.

elf as the most formidable sea going force on the earth. As most would agree, money (wealth) is power, and power is maintained at the point of a gun.

By 1900 Britain owned a quarter of the world. Countries such as Canada, India, South Africa, Egypt, Australia and New Zealand were all part of the British Empire. Queen Victoria had been crowned Empress of India. Huge amounts of money were systematically harvested from their colonial outreach, an outreach which was enforced and administered by a powerful British military presence in all parts of the world. The British Empire, however, did have competition.

At first almost unnoticed after 1850, then with significant intensity after the onset of the Great Depression of 1873 in Britain, the sun began to set on the British Empire. By the end of the 19th Century, though the City of London remained undisputed financier of the world, British industrial excellence was in terminal decline. The decline paralleled an equally dramatic rise of a new industrial Great Power on the European stage, the German Reich. Germany soon passed England in output of steel, in quality of machine tools, chemicals and electrical goods. Beginning the 1880's a group of leading German industrialists and bankers around Deutsche Bank's Georg von Siemens, recognized the urgent need for some form of colonial sources of raw materials as well as industrial export outlet. With Africa and Asia long since claimed by the other Great Powers, above all Great Britain, German policy set out to develop a special economic sphere in the imperial provinces of the debt-ridden Ottoman Empire. The policy was termed "penetration pacifique" an economic dependency which would be sealed with German military advisors and equipment. Initially, the policy was not greeted with joy in Paris, St. Petersburg or London, but it was tolerated.

Deutsche Bank even sought, unsuccessfully, to enlist City of London financial backing for the keystone of the Ottoman expansion policy—the Berlin-to-Baghdad railway project, a project of enormous scale and complexity that would link the interior of Anatolia and Mesopotamia (today Iraq) to Germany. What Berlin and Deutsche Bank did not say was that they had secured subsurface mineral rights, including for oil along the path of the railway, and that their geologists had discovered petroleum in Mosul, Kirkuk and Basra.

The conversion of the British Navy under Churchill to oil from coal meant a high risk strategy as England had abundant coal but no then-known oil. It secured a major concession from the Shah of Persia in the early 1900's. The Baghdad rail link was increasingly seen in London as a threat to precisely this oil security. The British response to the growing German disruption of the European balance of power after the 1890's was to carefully craft a series of public and secret alliances with France and with Russia—former rivals—to encircle Germany. As well, she deployed a series of less public intrigues to disrupt the Balkans and encourage a revolt against the Ottoman Sultan via the Young Turks that severely weakened the prospects for the German Drang nach Osten. The dynamic of the rise of German assertiveness, including in addition to the Baghdad rail, the decision in 1900 to build a modern navy over two decades that could rival England's, set the stage for the outbreak of a war in August 1914 whose real significance was a colossal and tragic struggle for who would succeed the ebbing power of the British Empire. The resolution of that epic struggle was to take a second world war and another quarter century before the victor was undeniably established.

The role of oil in the events leading to war in 1914 is too little appreciated. When the historical process behind the war is examined from this light a quite different picture emerges. The British Empire in the decades following 1873 and the American Century hegemony in the decades following approximately 1973 have more in common than is generally appreciated. - F. William Engdahl

War, yeah, good God man, what is it good for... making bankers richer, say it again...

Upon closer examination, it becomes apparent that the British Navy, since the Napoleonic Wars, has been working, not for the Crown, nor the citizens of England, but rather for the Bankers that preside over the City of London. The "City" refers to a financial district, the size of which is about a mile square, in the heart of London, that is home to some of the the largest financial institutions on earth. When the Queen has occasion to visit the "City" she bows to the Lord Mayor. Nathan Rothschild ordered the War of 1812 after Andrew Jackson forbade the renewal of he charter for the First National Bank in 1811. Rothschild was, at that time, in control of the most powerful institution in the City of London, the Bank of England. He was, of course attempting to gain control over the American Banking System as he had the English one. He did, after all, control the First National Bank of the United States. This he had accomplished through his mole, Alexander Hamilton. The Rothschid family has financed both sides of every war since Napolean, and continues to maintain control many of the most influential banks in the world.

During the 100 years leading up to WWI, the British Navy policed the world's major sea lanes at the behest of the bankers, and provided cost-free "insurance" for British merchant shipping vessels. Competitor fleets were forced to insure their ships against piracy, catastrophe and acts of war, through the City of London's large Lloyd's insurance syndicate. As the world's preeminent center of trade, all shipping and clearing houses were operated by families such as the Barings, Hambros, and above all, Rothschilds. These families criminally manipulated the world's largest monetary gold supply, an involvement that they continue to maintain to this day. Their resulting influence, and insider knowledge, provided them the opportunity to instigate calculated actions which could cause a rash of English exports to flood the markets of any competitor at will. Britain's unquestioned domination of international banking, which was backed up by the full force of the British Armed Forces has provided the maintenance of a criminal choke hold on world commerce for 200 years. The LIBOR scandal, as well as the recently uncovered FOREX fraud were both instigated by criminal banksters in the "City". They make the criminals at Goldman Sachs and JP Morgan look like amateurs. Of course, they have had a lot more practice.

Back to the Cause of World War One...

In 1903 the German Empire began their development of the Berlin-Baghdad Railway which was to connect Berlin with the (then) Ottoman Empire city of Baghdad with a 1,600 kilometers (990 mi) line through modern-day Turkey, Syria, and Iraq. Of course there is already track laid from Berlin to Constantinople thanks to the Orient Express so all Germany had to do was complete the remaining 990 miles and they would have direct access to Baghdad, and the petroleum resources located in the vacinity.

This project was met with much opposition from the major powers in Europe who realized that this new railway coupled with the fact that the Germans had gained access to and ownership of oil fields in Iraq meant that the Germans would soon gain the upper hand when it came to resource development and industrialization. These oil fields would soon be found to be the among the largest on earth.

Why was this is so important? In 1885 a German engineer, Gottleib Daimler, had developed the world's first workable petroleum motor to drive a road vehicle. Large engines capable of powering ships would soon follow. The economic potentials of the petroleum era were beginning to be more broadly realized by German Bankers. In 1908 the English Royal Navy still ran on coal but had already decided on a switch to oil, which burned more efficiently. This was a bold move on Winston Churchill's part considering that Britain had an abundance of coal and barely any access to Oil whatsoever. ..

In 1882, petroleum had little commercial interest. The development of the internal combustion engine had not yet revolutionized world industry. One man understood the military -strategic implications of petroleum for future control of the world seas, however.

In a public address in September 1882, Britain's Admiral Lord Fisher, then Captain Jack Fisher, argued to anyone in the British establishment who would listen, that Britain must convert its naval fleet from bulky coal-fired propulsion to the new oil fuel. Fisher and a few other far-sighted individuals began to argue for adoption of the new fuel. He insisted that oil-power would allow Britain to maintain decisive strategic advantage in future control of the seas.

Fisher argued the qualitative superiority of petroleum over coal as a fuel. A battleship powered by diesel motor burning petroleum issued no tell-tale smoke, while a coal ship's emission was visible up to 10 kilometers away. It required 4 to 9 hours for a coal-fired ship's motor to reach full power, an oil motor required a mere 30 minutes and could reach peak power within 5 minutes. To provide oil fuel for a battle ship required the work of 12 men for 12 hours. The same equivalent of energy for a coal ship required the work of 500 men and 5 days. For equal horsepower propulsion, the oil -fired ship required 1/3 the engine weight, and almost one-quarter the daily tonnage of fuel, a critical factor for a fleet whether commercial or military. The radius of action of an oil-powered fleet was up to four times as great as that of the comparable coal ship. - Eric J. Dahl, 'Naval innovation: from coal to oil'

By 1904 Fisher had been named Britain's First Sea Lord, the supreme naval commander, and immediately set to implement his plan to convert the British navy from coal to oil. One month into his post, in November 1904, a committee was established on his initiative to "consider and make recommendations as to how the British Navy shall secure its oil supplies." At that time it was believed the British Isles, rich in coal, held not a drop of oil.

The thought of abandoning the security of domestic British coal fuel in favor of reliance on foreign oil was a strategy embedded in risk. The Fisher Committee had been dissolved in 1906 without resolution of the oil issue on the election of a Liberal government pledged to work for arms control. By 1912, as the Germans began a major Dreadnought-class naval construction program, Prime Minister Asquith convinced Admiral Fisher to come out of retirement to head a new Royal Commission on Oil and the Oil Engine in July 1912.

Two months later on Fisher's recommendation, the first British battleship using only oil fuel, the Queen Elizabeth, was begun. Fisher pushed the risky oil program through with one argument: "In war speed is everything." Winston Churchill had by then replaced Fisher as First Lord of the Admiralty and was a strong advocate of Fisher's oil conversion. Churchill stated in regard to the Commission finding, "We must become the owners or at any rate the controllers at the source of at least a proportion of the oil which we require." - Winston Churchill, quoted in Peter Slulgett, Britain in Iraq: 1914-1932

From that point, oil conversion of the British fleet dictated national security priority to secure large oil reserves outside Britain. In 1913 less than 2% of world oil production was produced within the British Empire. - Anton Mohr, The Oil War, (New York, Harcourt, Brace & Co., 1926), 118-120.

By the first decade of the 20th Century securing long-term foreign petroleum security had become an essential factor for British grand strategy and its geopolitics. By 1909, a British company, Anglo-Persian Oil Company held rights to oil exploration in a 60-year concession from the Persian Shah at Maidan-i-Naphtun near the border to Mesopotamia. That decision to secure its oil led England into a fatal quagmire of war which in the end finished the British Empire as the world hegemon by Versailles in 1918, though it would take a second World War and several decades before that reality was clear to all. - Anton Mohr, The Oil War

A German-built rail link to Baghdad and on to the Persian Gulf, capable of carrying military troops and munitions, was a strategic threat to the British oil resources of Persia. Persian oil was the first crucial source of secure British petroleum for the Navy. Already, the decision by the German Reichstag to approve the massive naval construction program of Admiral von Tirpitz in the German Naval Law of 1900, to build 19 new battleships and 23 battle cruisers over the coming 20 years, presented the first challenge to Britain's rule of the seas. At the Hague Convention of 1907 Germany refused to continue an earlier ban on "aerial warfare." Under Count Zepplin, the Germans had been the first to develop huge airships. - Sara Reguer, Persian Oil

By 1916, British officials in Egypt had encouraged Sherif Hussein of Mecca to declare an Arab revolt against Turkish rule in the Hijaz. The Arabs, particularly those led by Hussein's son Faisal and his close adviser TE Lawrence (Lawrence of Arabia), moved out of Arabia to launch guerrilla attacks along the Hijaz railway into Palestine itself.

Upon closer examination, we find that the bulk of the British Army's and Navy's involvement in WWI took place in Turkey, Iraq, Syria and Saudi Arabia. Hardly places of probable interest for nineteen year old Serbian Nationalists...

So, it would appear that the first World War was instigated by a cartel of English Banksters who were looking out for their banking interests which included control over the world's shipping lanes as well as rail links to the Middle East to exploit oil resources. It's always been about the Banksters.

How naive to believe that the death of over 37 million people was brought on by a simple twist of fate. This kind of revisionist/tripe history does nothing to allow us to learn from the past. When will the people finally wake up to the fact that every thing bad in the world, including pestilence and famine, is all the resultant outcome of avarice, corruption, criminal manipulation, and greed by a twisted few...

The military as well as the politicians serve the Banksters. They do not serve the people. That was the condition at the time of the American Revolution everywhere but in the United States. It has since become the condition everywhere. Syria is about the oil. Libya is about the oil. Iraq is about the oil. Iran is about the oil. Ukraine is different, it's about the natural gas (LOL). The Banksters are not all on the same side, but they control the politicians and the militaries everywhere. They also control the Oil Companies. Democracy is a myth and those that believe it are delusional.

I have been listening, this week, to numerous reviews of books that have been written to commemorate World War One. The authors have all, seemingly, approached the event as one that was simply a result of happenstance. "If the Archduke's car had not made a wrong turn...", or "if the young assassin had missed his mark..., things would be so different". What are these people smoking?

Kill the banksters and save the world.

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.