Where is Galt’s Gulch When You Need It?
Welcome to 2011 and the establishment media is telling us happy days are here again. Expect economic growth, falling unemployment, more manipulated stock market gains, a stronger dollar, rising real estate values and the end of the recession.
Come to think of it, I believe this was also their forecast for 2009 and 2010. Eventually they will get it right at least temporarily and – who knows? – it might be this year, given with trillions of additional stimulus and costs added to the national debt and future generations of taxpayers.
Here at Freedom Matters, we don’t care about the short term and we have no reason to be cheerleaders for Washington, Wall Street, the EU or the political establishment. Looking back at the last decade it would appear the euphoria and propaganda early in the decade was certainly misplaced.
The Last Ten Years December 31, 2000
December 31, 2010 Gold $316 $1,400 plus Silver $5.00 $30.00 plus Swiss Franc/Dollar Exchange Rate 61 cents $1.06 plus
Later in the newsletter Ron Holland will give us his dire forecast for the next decade as Washington and other governments attempt to maintain the sovereign debt Ponzi scheme for a few more years by stealing more of our private wealth.
We agree with Pat Buchanan’s 12/28 editorial question, “Is A Bond Crisis Inevitable?” Who Lost the Middle East? by Pat Buchanan on Creators.com – A Syndicate Of Talent and we believe the answer is yes and the only unknown is the timing of the event.
Our concern is although the sovereign debt crisis is primarily a creation of the Wall Street financial elite, the consequences will be almost global in nature due to their success in exporting this flawed financial scam to politicians and governments across the West.
We are concerned the nations of the world may well demand retribution and reparations from the US and Wall Street for the crisis in the longer term. America will no more be able to pay the outrageous costs than was the Weimer Republic of Germany with the illegal war debt levied by the Treaty of Versailles.
In Ayn Rand’s freedom classic, “Atlas Shrugged”, Galt’s Gulch, the place of safety and security for those that had planned ahead was for practical purposes located somewhere in the western United States. Her model for the location was actually Ouray, Colorado where she wrote much of the novel. I’ve visited Ouray many times and on occasion there is indeed a mist or fog over the village protecting it from being easily seen from above just like Galt’s Gulch in the novel.
We are not entirely sure where the safe haven locations will be in the coming bond crisis and dollar collapse but be assured neither you or your assets will be safe inside the United States or most other debt ridden western nations as this event unfolds. .
But never fear! The House Republicans promise to read the entire Constitution aloud in Congress; they will challenge raising the debt ceiling in the upcoming session. More smoke and mirrors. Won’t work in this day and age. The Internet will cover the real story and the Tea Party will read between the lines.
If incoming House Speaker John Boehner thinks that by crying on cue and making the right noises about “budget cuts” he can damp the anger of the American people, he may soon find out how wrong he is. More and more Americans today now look past the establishment news propaganda organs of the state and get their news on the internet and see these pathetic staged events for what they are, just window dressing for a failed political system based on government debt and nothing more.
Rest assured, we will continue to search for and report on locations and strategies to help you build your own Galt’s Gulch to defend your family, wealth and liberties.
The Foundation for the Advancement of Free-Market Thinking
Your Private Wealth Is Threatened By Government Revenue Needs & Treasury Debt
This is Part 2, of Ron Holland’s speech “Down Argentine Way” presented on the recent FreedomFest Untitled 1 financial cruise down in South America during November. Here at the Foundation we hope to report more information and editorial comment about what is happening in South America. …
There is nothing very complicated or prophetic about forecasting how Washington plans to steal much of the remaining private wealth of most American citizens over the next decade or so. This is the norm in history and politics throughout world history and this has always been the major function of governments. While the Anglo-American establishment has whitewashed this part of history, politics and information over the last 150 years, today with the internet, the truth of our history is apparent to anyone willing to do the research.
Just as the citizens of America and Great Britain have in the past financially benefited from living under the Anglo-American Axis in many ways, today in these twilight latter-days of the empire so we will suffer under the wealth confiscation and likely retribution from the rest of the world due to the accident of our birthplace and citizenship.
As the American national debt grows larger, here are 15-plus probable attacks on your wealth over the coming ten years.
Your assets, benefits and future prosperity will be forfiet to Washington’s elites as they try to buy time to right a sinking ship – and to no avail. The impact on our wealth and future prosperity will likely dwarf what has happened before in Argentina, during the Russian collapse and in Germany with the post First World War Weimer republic.
This essay will discuss the threats and possible new taxes, penalties and controls designed to transfer wealth from the private sector to the federal government.
Social Security Theft – As we see today in France, Social Security retirement ages will be further extended into the future. Wealthy Americans will be “means tested” and entirely forfeit their benefits and Washington will eventually end cost-of-living adjustments for all but the poorest Social Security recipients.
Manipulate Cost of Living Adjustments & Statistics To Steal Your Wealth – Even those receiving existing benefits will find their cost-of-living adjustments dramatically reduced over time with false inflation statistics just as we see today.
The End of Capital Gains – The severe depth of the recession has bought US investors a couple of years extension of capital gains but this will not be a permanent benefit regardless of the party in power. First favorable capital gains treatment will likely be ended for all privately owned investments except for US domestic stock and bond investments. Foreign stocks and bonds will be taxed at regular income tax levels while domestic securities other than (non-productive assets) including mining and natural resource companies will still be provided favorable capital gains treatment. If they are able to manipulate the stock market to new highs then expect an eventual end to capital gains for US equities.
The Probable Imposition of a Non-Productive Asset Gain Tax – Americans with highly appreciated precious metals investments (including numismatics and collectibles) will find a substantial amount of their gains charged with an emergency non-productive asset gain tax. Not only will you lose capital gains treatment but expect an additional high penalty tax on gains as the last thing the establishment wants is hard money investors benefiting while the rest of population find their investments collapsing in value.
This Tax Will Likely Be Extended to Mining and Natural Resource Stocks – Another reason to take your profits sooner rather than later in a crisis situation where the public with conventional investments will clamor for this type of retroactive tax.
A Two-Tier Gold Price Structure – At the very least there may well be a government enforced set or internal price for precious metals sales that operates outside the free-market pricing outside the jurisdiction of the United States. This could be handled by the non-productive asset tax mentioned about or used during a time of government gold confiscation to pay lower prices to American investors than the price outside of America. This is what happened during Roosevelt’s earlier gold confiscation and don’t expect Congress to help you.
The Risk of Private Gold Confiscation Will Continue To Increase – When the dollar and Treasury market crashes, Washington will enact legislation or use Presidential Executive Orders against gold investors to curtail your profits, add a confiscatory non-productive asset tax or confiscate your gold with some type of fiat currency exchange. In any case, they plan to end up with your gold as this will be the basis of a fake gold standard which may be used as the pretense to confiscate your gold. This will take place during the coming bond and dollar crisis by Presidential Executive Order. (Next month’s letter will have a discussion on Presidential Executive Orders past and future.)
The Fed & Washington Might Manufacture A Fake Gold Standard – Free-market public and private currency competition should replace the failed fiat currencies in use around the world today, But Washington will not give up their monopoly on currency creation without a fight and fraud against the American people and we can expect in the latter stages of a dollar crash some type of complicated, fake gold standard or backing as a final fallback position. .Just plan on this happening and it may well be the excuse used for outright gold confiscation.
Washington Will Confiscate Large Private Retirement Fund Balances – Hungry, Bulgaria and Poland are already seizing private retirement funds to meet budget shortfalls. This will take place in the United States. Read the current report on the European pension seizures later in the newsletter under “What You Might Have Missed in the Press”.
The long-term confiscation and control idea is to eventually force all retirement benefits under the new automatic/mandatory IRA program where everything will be combined with and managed like your Social Security benefits. Wealthy and productive Americans will find their retirement benefits used to support the trillions in underfunded union, state and local government employee plans.
Remaining Retirement Funds May Be Forced Into Mandated US Treasury Obligations – As in Europe, you can expect a percentage of your remaining retirement funds and new required contributions in the proposed Automatic IRA accounts will be forced into government bond obligations and your funds will become the buyer of last resort of US Treasury debt. While the Chinese, Japan and offshore nations, central banks and investors are dumping Treasuries your retirement security will be sacrificed to provide liquidity for investors selling the debt obligations.
All Productive Working Americans Will Be Forced Into A Mandatory, Automatic IRA Scheme With Required Annual Contributions – Americans with limited or no savings may actually benefit with this program while those of us with substantial retirement assets will find our benefits stolen to prop up the retirement programs of cities, states and unions.
Home Values May Continue To Decline From the Bubble Levels – There are still substantial levels of foreclosures and short sales on the market which will be followed by more homes being listed for sale which are currently held off the market due to low demand during any temporary price upturn.
An End to the Home Interest Deduction – Proposals in Congress are already putting the home interest deduction on the table of deduction to be reduced or eliminated in the future. I project the home interest deductions will first be eliminated for wealthy homeowners and later expanded to the middle class. This will create further downward pressure on real estate values and the current weakness may buy some time for homeowners.
Rising Income & Estate Taxes – We have already seen this play out during the Lame Duck session of Congress. Estate taxes have been restored and the only question is will the rate remain at current levels or go up. Second, the Bush tax cuts have been extended for two years due to the bad economy but both parties will soon raise income taxes due to revenue needs.
A National Sales or VAT Tax Is Coming – Most western nations already have a VAT tax and this is also already in discussion stages by Congress. Expect an initial tax rate of 5% or more in addition to existing state, county and city sales taxes and the rates will only go up from there.
State, Municipal & Union Bankruptcies & You Pick Up the Bill – Note these costs which will be bailed out by the federal government in many cases and ultimately by the taxpayers will be in addition to the coming bailout on their existing retirement and health benefit plans. Note there is finally some good news on this front as many Democrats and Republicans are attempting to curb the growth and powers of parasitic public employee unions.
What Should Americans Do About Washington’s National Debt?
Everyone with any intelligence in the US and around the world knows that there is no way for Washington to manage the tens of trillions in debt and unfunded liabilities short of ultimate repudiation or hyperinflation. Thanks to Wall Street bankers and the Anglo-American financial elite, our ruinous debt-financing Ponzi scheme has been exported to most Western nations as their politicians have made a compact with the devil in delivering vote buying programs and postponing the interest and debt reduction to future generations. Watch the cuts and subsequent riots in Greece, Ireland, the United Kingdom and you’ll see just a little of the future for the United States with its faltering world reserve currency status.
The question is, should the citizens and the formerly sovereign states of the United States wait for Washington’s foreign creditors to seize the remaining government and private assets left after our politicians have finished with us?
Our politicians are in the process of totally bankrupting the country, individual states and municipalities and in a less than a decade will have confiscated most private wealth and placed tens of trillions of more debt on future generations. Should we act now before Congress and our politicians loot our personal, retirement and real estate wealth, destroy our Treasury obligations and kill the dollar and democratically take matters into our own hands before the looming dollar and debt crisis?
One alternative is for Americans in the individual states to organize and work toward a “Washington National Debt Constitutional Amendment” and repudiate much of the Washington government debt before it bankrupts every private American citizen. Otherwise, the massive increase in the level of indebtedness due to the meltdown and depression may first bring down the Treasury market followed by the US dollar and this will destroy the American economy for decades to come.
The American people need to meet the problem on terms which will make the best of a difficult situation for the nation and our personal financial security instead of allowing foreign creditors, our financial establishment and Washington to buy more time for them through the confiscation of our private wealth, financial security and liberty.
Only a grassroots effort by the American people through state-nullification or the constitutional amendment process have any hope of success. The alternative is to expect those who are destroying our economy and nation to solve the problem they created without sacrificing us in the process. This is just wishful and foolish thinking.
On 12/21/1913 the New York Times stated “New York will be on a firmer basis of financial growth, and we shall soon see her the money centre of the world”, one day before the Federal Reserve Act was hurriedly passed and signed into law with limited debate by a Congress controlled by Washington and banking special interests.
These undemocratic tactics were designed then – just as today – to thwart the will and overwhelming opposition of the American people to expensive handouts for Wall Street and those shadowy few who stand behind the banking system.
Now, Washington’s illegitimate national debt is growing exponentially due to the bailouts and stimulus bills as Congress tries to jumpstart a depression threatened economy. This additional debt load will within the next decade bankrupt our nation and impoverish most productive, working Americans.
The Federal Reserve, together with the above financial elites, essentially manufactured the credit and real-estate bubble. The result: continued enhancement of foreign investment in their Treasury debt Ponzi scheme along with obscene profits for Wall Street at the expense of the American people.
This scam by our financial establishment makes Bernard Madoff’s despicable actions look like Mother Teresa’s charity operation in comparison. An unintentional consequence of these actions was the meltdown in markets, the credit crisis and spreading global depression when the bubble finally burst.
Now there is a cover-up of the cause and coming global run, crash and probable collapse of US Treasury obligations because of the dramatic increase in Washington’s national debt to unsustainable levels. This economic tidal wave threatens the financial security and wealth of every American along with their savings, real estate, retirement plans, investment portfolios as well as their promised Social Security and Medicare benefits.
Concerned Americans must bypass a corrupt Congress and the leadership of both political parties often controlled by special interests at the national level and seek a debt solution through the constitutional amendment and nullification process starting at the state level.
Repudiating the illegitimate national debt of Washington politicians and special interests will allow existing treasury debt obligation owners and investors time to dispose of the unlawful debt created only to profit special financial and corporate interests. They own and control majorities in the House and Senate, much of the party leadership positions and the Federal Reserve System. State legislatures must resolve that most of the national debt is not a legitimate debt of the American people nor the future generations who would otherwise find their prosperity and financial security sacrificed for the profit of a few corrupt global financial elites.
It will be a mistake to waste our time or effort in another futile attempt to lobby Congress, the Courts, the President or the national party leadership of either party. Most have shown their willingness to sacrifice principle, integrity and our future in the recent bailouts and the legislation just passed during the Lame Duck session of Congress.
The proposed constitutional amendment must first call upon the state legislatures to ratify, an amendment repealing Section 4 of the 14th Amendment which outlawed even questioning the validity of the national debt; “The validity of the public debt of the United States, authorized by law….shall not be questioned”, followed by language to further prohibit future indebtedness and deficit spending by the federal government and repudiate all federal government debt (except for obligations for Social Security Trust Funds) and debt and interest service obligations accrued after the 12/22/2013 deadline regardless of when the amendment is ratified by 2/3 of the states.
Thankfully, our Patriot Founding Fathers provided Article Five of the United States Constitution for a future time of congressional, judicial and presidential tyranny as we have seen for the last ten plus years. It provides for an option to assemble a national Convention to propose amendments to the United States Constitution as an alternative to the process of securing two-thirds approval in both houses of Congress.
Like the bailout actions and national debt increases today, Section 4 of the 14th Amendment was an unconstitutional act forced on the American people in a time of crisis just after the end of the War Between the States much like the questionable creation of the Federal Reserve and the Income Tax were enacted on the American people back in 1913.
The amendment was proposed on June 13, 1866 and later ratified on July 9, 1868 at a time when the legitimate voters of all the former Confederate States of America were disenfranchised and not allowed to vote and the states were under military occupation, reconstruction and control of the same special interests who started the war. In addition to making it illegal to question the validity of the public debt of the United States, it also unilaterally prohibited the payment of previous lawful debts incurred by the Confederate States of America or the individual state debts during the war.
Therefore we seek the right by constitutional amendment to lawfully question the validity and legality of a $60 plus trillion Washington national debt forced on productive Americans without their consent by a Congress representing only special interests and not the will or best interests of the nation or the people of these United States.
We urge by constitutional amendment the repudiation of the unlawful debt service and repayment of principal based on an excessive level of taxation and confiscation of the private wealth, earnings and productivity of this and future generations of Americans accrued after December 22, 2013.
Yes, this may be a pipedream solution but I have heard nothing from the political establishment except empty promises. The time for talk is over. Either we take action soon or wait for China and other world creditors to act. They will not be working in our best interests.
What You Might Have Missed In the Press
European Nations Begin Seizing Private Pension To Meet Revenue Needs
European nations begin seizing private pensions – CSMonitor.com
This confiscation of private retirement plans and IRA style accounts will happen here in the United States probably within the next decade.
Russia Cuts the Number of Federal Officials By 20%
Medvedev signs decree to cut number of federal officials | Russia | RIA Novosti
A great idea so why can’t we get congress to do this in the United States? We all know the answer to this rhetorical question but the fact is while Washington is borrowing, the rest the world is cutting government employees and benefits. This does not bode well for the United States.
Janet Napolitano to the Rescue in Afghanistan
Napolitano Visit Aimed at Beefing Up Afghan Border Security, Customs – FoxNews.com
What a joke and a farce as her visit to Afghanistan to help secure their border would be funny if Janet Napolitano’s entire performance as Homeland Security Secretary wasn’t such a total failure. 150 thousand troops plus almost as many highly paid mercenaries, now described as “private contractors” can’t secure the borders of Afghanistan. While at home 67,000 TSA gropers do nothing to defend the totally open American border other than molest peaceful airline passengers.
If she really wants to do her job and defend the security of our homeland maybe she should either close our border with Mexico or take the opportunity and join the US military. They could make her another butt kissing general or something and she might even do a good job in some areas.
China Will Bailout Spain?
China backs Spain to emerge from crisis: Beijing
Or so they claim? It is looking more and more like China will continue to purchase much of the European sovereign debt at least for now. What happens if they bailout the western world except for the United States? This would certainly make foreign retribution and claims against the Anglo-American banking elites and the United States far more popular and possible after a worldwide debt crash as we would have few friends and many foreign leaders and politicians looking to solve their problems at home with our remaining wealth and government assets.
New Jersey Is the Grinch That Wants To Steal Christmas
They want to seize and confiscate unused Christmas gift cards to help balance the budget. Just a taste of what we can expect in the future from desperate politicians at the state, local and federal level. Why stop with gift cards? Why not any extra cash in checking and savings account, money market funds etc.
We hope you have enjoyed the forth issue of Freedom Matters, the official publication of The Foundation for the Advancement of Free-Market Thinking. The Foundation is a non-profit organization recently established by Appenzeller Business Press (publisher of The Daily Bell) to provide financial support for projects that further the public’s understanding of free markets.
During this new-year, we hope you will consider making a small contribution toward restoring freedom to a world badly in need of it. The foundation emphasizes Austrian economics to solve the deep problems threatening the West today.