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

The Criminal Nature of Central Banking

To get a handle on the nature and cause of the erosion of our civil liberties and economic freedoms, not only in the United States but also throughout the world, one need look no further than the present day system of Keynesian (faux science) "tax and spend" policies. These policies necessitate and reinforce the tenets of fractional reserve banking, an insidious system which provides special and perverse privilege for Central Bankers and their subordinates.

This "privilege" allows banks to conjure money out of thin air and then loan it out and charge interest on it. This "privilege" additionally provides a "no cost and no risk" means of accumulating wealth. Bankers need not be familiar with machinations of the market place, or even participate in the risk/reward aspects of free trade, but, rather, are allowed to sit idly by and have all the wealth in the nation, eventually, transferred to their coffers. They are neither called upon for innovation, nor the responsible management of any aspect of the economy. These last two aspects should be painfully clear to anyone who has witnessed the levels of ineptitude exhibited by the previous two Federal Reserve Chairpersons.

To help me elucidate the perverse nature of this system and make the perversion as clear as possible, I will lean on the thoughts of Sheldon Emry:

To grasp the truth that periodic withdrawal of money through interest payments will inexorably transfer all wealth in the nation to the receiver of interest, imagine yourself in a poker or dice game where everyone must buy the chips (the medium of exchange) from a "banker" who does not risk chips in the game. He just watches the table and reaches in every hour to take 10 percent to 15 percent of all the chips on the table. As the game goes on, the amount of chips in the possession of each player will fluctuate according to his luck. However, the total number of chips available to play the game (carry on trade and business) will decrease steadily.

As the game starts getting low on chips, some players will run out. If they want to continue to play, they must buy or borrow more chips from the "banker". The "banker" will sell (lend) them only if the player signs a "mortgage" agreeing to give the "Banker" some real property (car, home, farm, business, etc.) if he cannot make periodic payments to pay back all the chips plus some extra chips (interest). The payments must be made on time, whether he wins (makes a profit) or not.

It is easy to see that no matter how skillfully they play, eventually the "banker" will end up with all of his original chips back, and except for the very best players, the rest, if they stay in long enough, will lose to the "banker" their homes, their farms, their businesses, perhaps even their cars, watches, and the shirts off their backs!

Our real life situation is much worse than any poker game. In a poker game no one is forced into debt, and anyone can quit at any time and keep whatever he still has. But in real life, even if we borrow little ourselves from the "bankers," our local, State and Federal governments borrow billions in our name, squander it, then confiscate our earnings via taxation in order to pay off the bankers with interest.

We are forced into this system at the point of a gun, and we are not allowed to "cash out" except by dying. And then they confiscate what ever we have left. We pay as long as we live, and our children pay after we die. If we cannot or refuse to pay, the government sends the police to take our property and give it to the bankers. The bankers risk nothing in the game; they just collect their percentage and "win it all." In Las Vegas, all games are rigged to pay the owner a percentage, and they rake in millions. The Federal Reserve bankers' "game" is also rigged, and it pays off in billions!

Politicians, whether they be Democrat or Republican are thoroughly intrenched in this scam and independent voters who have wondered why politicians always spend more tax money than they take in should now see the reason. When they begin to study our money system, they soon realize that these politicians are not the agents of the people but are the agents of the bankers, for whom they plan ways to place the people further in debt.

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. Constitutional mandates insist that American currency be backed by precious metals. Adhering to those mandates would insure inflation and deflation would only occur if the quantity of precious metals was significantly altered, thereby skewing the supply/demand equation. Because of the energies necessary to locate, mine, refine, smelt and coin precious metals, the value will always be relatively maintained. Because of the fact that practically no energy is necessary to produce "funny money", there is no value to begin with. Producing more of it makes it worth less than nothing, as it becomes a liability and the biggest threat in the world to liberty, freedom, peace and justice. Any devaluation of American currency is a direct result of the money that the Federal Reserve is stealing out of your pocket. Get rid of Central Banks, and 99% of the world's problems disappear.

It takes only a little imagination to see that if Congress had been "creating," spending and issuing into circulation the necessary increase in the money supply, there would be no national debt. Trillions of dollars of other debts would be practically non-existent.

Since there would be no original cost of money except printing, and no continuing costs such as interest, Federal taxes would be almost nil. Money, once in circulation, would remain there and go on serving its purpose as a medium of exchange for generation after generation and century after century, with no payments to the Bankers whatsoever!

The obvious solution to this global dilemma would be to eliminate all Central Banking in the world. Consequently, the politicians that control the ones with the guns (the guns unconstitutionally bigger than yours or mine) have been been absolutely corrupted and are little more than suck-ups and agents for the Criminal Banksters. These criminals (the Banksters) have recently started eating their young, in a manner of speaking, by throwing them off tall buildings or precipitating nail gun accidents. These "accidents" have been staged to preclude the opportunity of of any pesky subordinates that might have considered saving themselves, by "singing" to Interpol, or one of the few non-corrupt regulators that still exist.

It is a dire state of affairs. The current state of the global economy is tenuous at best. Remember, these criminals were not required to have a clue about productively managing economies. Their sole requirements included being socially connected as well as lacking any moral or ethical standards. As a group, Central Bankers are parasites who have developed an insatiable need to steal all the wealth of the world. I suspect that they also worship the devil.

Again from Sheldon Emry:

Family, morals, love of country, the Christian religion, all that is honorable, is being swept away, while they try to build their new, subservient man. Our new "rulers" are trying to change our whole racial, social, religious, and political order, but they will not change the debt-money-economic system, by which they rob and rule. Our people have become tenants and "debt-slaves", to the Bankers, and their agents, in the land our fathers conquered. It is conquest through the most, gigantic fraud and swindle, in the history of mankind. And we remind you again: The key to their wealth and power, over us, is their ability to create "money" out of nothing, and lend it to us, at interest. If they had not been allowed to do that, they would never have gained secret control of our nation. How true Solomon's words are: "The rich ruleth over the poor, and the borrower is servant to the lender "(Proverbs 22:7).

God Almighty warned, in the Bible, that one of the curses, which would come upon His people, for disobeying His laws was: The stranger that is within thee shall get up above thee very high; and thou shall come down very low. He shall lend to thee, and thou shall not lend to him; he shall be the head, and thou shall be the tail. Deut. 28:44-45

What to do, what to do...

I believe that the "reset" that I have been warning you about over the last year will soon begin in earnest. That is not to say that it hasn't started yet, but rather that it is about to accelerate exponentially. Center stage in this reset will be the revaluation of the U.S. Dollar. I am concerned that there is cause for concern provided, not only from the advent of the dollar's demise, but also from "bail-ins" (the confiscation of your capital by the banks). Another concern is the "federalization " of your pension accounts, IRAs and 401ks through legislation that would provide for the conversion of those funds into Treasuries, that could be more readily squandered.

There are several levels of protection available. Chuck Butler's EverBank, for instance, will let you buy CDs that are denominated in what ever foreign currency that you choose. Norwegian Krone currently represents one of my favorite choices, however both Canadian and Australian Dollars so be considered as well.

There are private facilities that offer safety deposit boxes that are not affiliated with the FDIC. Another consideration might be to set up a foreign bank account through PayPal, for instance, but I am, as yet, not qualified to affirm the security of off shore banking. Switzerland used to provide a safe haven for deposits but caved in to pressures initiated by the Federal Reserve through their collection agency, the IRS. As a result, Swiss accounts are no longer secure. After John Corzine absconded with hundreds of $millions via M.F. Global, segregated accounts are no longer secure. Gold and silver in your personal possession provide, perhaps, the most secure way to store and preserve your wealth.

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.