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Archive for August 17th, 2010

Who is responsible For The Mess We Are In? 545 vs. 300,000,000

My brother sent me this wonderful e-mail today and I am posting it and sending it on.


Begin forwarded message:

545 vs. 300,000,000


Charley Reese has been a journalist for 49 years.

545 PEOPLE — By Charlie Reese

Politicians are the only people in the world who create problems and then campaign against them.

Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?

Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?

You and I don’t propose a federal budget.  The president does.

You and I don’t have the Constitutional authority to vote on appropriations.  The House of Representatives does.

You and I don’t write the tax code, Congress does.

You and I don’t set fiscal policy, Congress does.

You and I don’t control monetary policy, the Federal Reserve Bank does.

One hundred senators, 435 congressmen, one president, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.

I excluded the members of the Federal Reserve Board because that problem was created by the Congress.  In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank.

I excluded all the special interests and lobbyists for a sound reason.  They have no legal authority.  They have no ability to coerce a senator, a congressman, or a president to do one cotton-picking thing.  I don’t care if they offer a politician $1 million dollars in cash.  The politician has the power to accept or reject it.  No matter what the lobbyist promises, it is the legislator’s responsibility to determine how he votes.

Those 545 human beings spend much of their energy convincing you that what they did is not their fault.  They cooperate in this common con regardless of party.

What separates a politician from a normal human being is an excessive amount of gall.  No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits…. .  The president can only propose a budget.  He cannot force the Congress to accept it.

The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes.  Who is the speaker of the House?  Nancy Pelosi.  She is the leader of the majority party.  She and fellow House members, not the president, can approve any budget they want.  If the president vetoes it, they can pass it over his veto if they agree to.

It seems inconceivable to me that a nation of 300 million can not replace
545 people who stand convicted — by present facts — of incompetence and irresponsibility.  I can’t think of a single domestic problem that is not traceable directly to those 545 people.  When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.

If the tax code is unfair, it’s because they want it unfair.

If the budget is in the red, it’s because they want it in the red ..

If the Army & Marines are in IRAQ , it’s because they want them in IRAQ If they do not receive social security but are on an elite retirement plan not available to the people, it’s because they want it that way.

There are no insoluble government problems.

Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power.  Above all, do not let them con you into the belief that there exists disembodied mystical forces like “the economy,” “inflation,” or “politics” that prevent them from doing what they take an oath to do.

Those 545 people, and they alone, are responsible.

They, and they alone, have the power..

They, and they alone, should be held accountable by the people who are their bosses.

Provided the voters have the gumption to manage their own employees…

We should vote all of them out of office and clean up their mess!

Charlie Reese is a former columnist of the Orlando Sentinel Newspaper.

What you do with this article now that you have read it………  Is up to you.

Sales Tax
School Tax
Liquor Tax
Luxury Tax
Excise Taxes
Property Tax
Cigarette Tax
Medicare Tax
Inventory Tax
Real Estate Tax
Well Permit Tax
Fuel Permit Tax
Inheritance Tax
Road Usage Tax
CDL license Tax
Dog License Tax
State Income Tax
Food License Tax
Vehicle Sales Tax
Gross Receipts Tax
Social Security Tax
Service Charge Tax
Fishing License Tax
Federal Income Tax
Building Permit Tax
IRS Interest Charges
Hunting License Tax
Marriage License Tax
Corporate Income Tax
Personal Property Tax
Accounts Receivable Tax
Recreational Vehicle Tax
Workers Compensation Tax
Watercraft Registration Tax
Telephone Usage Charge Tax
Telephone Federal Excise Tax
Telephone State and Local Tax
IRS Penalties (tax on top of tax)
State Unemployment Tax (SUTA)
Federal Unemployment Tax (FUTA)
Telephone Minimum Usage Surcharge Tax
Telephone Federal Universal Service Fee Tax
Gasoline Tax (currently 44.75 cents per gallon)
Utility Taxes Vehicle License Registration Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Recurring and Nonrecurring Charges Tax

Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world.
We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.

What in the hell happened?  Can you spell ‘politicians? ‘ I hope this goes around THE USA at least 100 times!!!
YOU can help it get there!!!


If you do the right thing and pass this on – which is entirely up to you –
please do the right thing and highlight and delete any addresses you receive with it.

Thank You

Written by twelvebooks

August 17, 2010 at 11:16 pm

Aug 17,2010 An unusal communication with Jesus Christ

John Tng has been sent a message by our Lord Jesus Christ in a most unusual way. He is aware of the talents and abilities that his children have and being the perfect communicator He chooses different means to reach different people. The article you wrote is excellent John. Yesterday I was thinking that it had been a long time since we last heard from you. About half an hour before I read your post my daughter who lives about 1 hour away was driving to get to her home and a car with the license plate F77 7YL came in front of her, and knowing how I communicate with Jesus through license plates she called me to tell me. I think this is also a confirmation of your communication which started with a license plate whose number and letters had a definitive message that you could decode.

It is with great joy that I read the post and it fills me with great hope and anticipation.

Yours in Jesus Christ


John Tng (17 Aug 2010)
I’ve Got My One Way Ticket To The Sky

Dear Doves,

Jesus spoke to me more than a week ago that Obama is the antichrist and that our departure is soon (possibly this year)!

I did not hear an audible voice, nor see in a vision or dream. The Lord chose His usual means to communicate His message to me, that is, via numbers. As I will show you shortly, the message is so clear that it is as if Jesus was speaking to me face to face. The best part about the message is that IT IS VERIFIABLE from Scripture. There is no way I could have cooked up the numbers to come up with my own message.

The message also confirms the discovery made by both Bob Ware and myself in the Genesis 1:1 Pyramid. This means a lot to me personally as it signifies that our work has just received a divine seal of approval from the Lord Jesus Christ. We were not thinking vain thoughts and dabbling in unbiblical studies. We were guided by the Holy Spirit.

I want to present the message in the clearest possible way without getting too much into numbers. But since the numbers is the message, we will have to deal with the numbers. Jesus spoke to me so that all watchers may know that Obama is the antichrist and that our departure is soon. It would be a shame if you could not follow the message because of the numbers.

There are 2701 stones in the Genesis 1:1 Pyramid (Hebrew gematria of Genesis 1:1 is 2701; see link). Bob and I devised three counting schemes to number each stone. I started counting the stones from the base up, left to right row-wise and color-coded these stones blue. Bob counted from the apex of the Pyramid, right to left row-wise and he used the red color to denote these stones. I then came up with the third way of counting, which was done column-wise from the base up; these stones are color-coded black.

Thus, every stone can be represented by three colors, triangulated by the three ways of counting as it were; for example, the leftmost stone at the base is blue stone 1, red stone 2701, and black stone 1; this stone has a total value of 2703 (1+2701+1) — the lowest possible sum. The rightmost stone at the base is blue stone 73, red stone 2629 and black stone 2701; this stone has a total value of 5403 (73+2629+2701) — the highest possible sum.

The sum of each stone is a unique number ranging between the lowest and highest values: 2703, 2704, 2705, …….., 5403. You may now forget about all numbers mentioned above as there is only one sum I want to highlight here — the number 3368 — the Greek gematria of LORD JESUS CHRIST — the One who imparted the message.

This is the number I saw on Aug 6 that leads to the conclusion that Obama is the antichrist and that our departure is soon, possibly this year. The stone that has a sum of 3368 (Lord Jesus Christ) is black stone 666 !!!!!!

3368 (LJC) = black stone 666 + blue stone 1766 + red stone 936

Only one stone has a combined total value that is the equivalent of the Greek gematria of LORD JESUS CHRIST and that stone is black stone 666!!!

What is the Lord trying to tell us?

Of course, seeing the number 3368 per se proves nothing. How does it link to Obama the antichrist and our departure at the rapture?

I am glad you asked!

I was watching a love story when I saw the number 3368 on my computer screen. I had to pause the video and leaned forward to take a closer look to confirm what I saw as the number shown on the computer screen was not very clear.

Given the poor resolution of the above picture, one is never quite sure of the license plate number. But my doubt evaporated half a minute later when I saw the number 3368 with great clarity. The man in the picture hailed a taxi for his ex-girl friend who was about to DEPART for good. Notice that the two letters on the license plate, DP, could stand for DEPART. Below is a series of snapshots taken from the time the taxi appeared to the time the taxi left as the man watched on with sadness.

The license plate, DP 3368, appeared precisely at 6:46 (6 min 46 sec) into the video clip with the DEPART (DP) message from the LORD JESUS CHRIST (3368). The time of the message, 6:46, is linked to a famous Greek word listed as Strong’s number 646. Guess what that is? Incredibly, it is APOSTASIA — the controversial Greek word translated as ‘a falling away’ in the KJV but could mean DEPARTURE too.

The Lord further hinted that this DEPARTURE is our long awaited HARPAZO (Strong’s 726) — the catching away of the bride, since when the girl DEPARTED the man looked on with sadness at 7:26 into the video clip! Intriguingly, this Chinese love drama was first broadcast on 7-26 this year (see link)!

Fact #1: I do not have the wherewithal nor power to influence Hunan Satellite Television to begin broadcasting the series on July 26 last month. Fact #2: To plant the licence plate number, DP 3368, into an appropriate departure scene in the story, I would have to be the director himself directing the shooting. Fact #3: To engineer a rapture message, as director I would have to ensure that my post-production team edit the two key frames precisely at 6:46 and 7:26!

Ignore the three laughable facts above. It must have been the Lord’s doing!

The 41-second revelation given by the LORD JESUS CHRIST from 6:46 to 7:26 is framed between APOSTASIA (Strong’s 646) and HARPAZO (Strong’s 726). The footage captures the DEPARTURE of a girl whose name in Chinese, 天儿, literally means CHILD OF HEAVEN!

The 41-second video segment’s mid point is 7:06, or six minutes sixty-six seconds — another link between APOSTASIA and the man of sin !!!!!!

A key shooting location for the entire drama series is PIAO Cafe, owned by the man and operated by his friend in the story. The Chinese character for Piao is 飘 — which means ‘to float’ (see link). The character is further composed of two constituent characters: 票 for ticket and 风 for wind. Taken together, PIAO may be interpreted as A TICKET FOR FLOATING / FLYING IN THE AIR!

Combined with APOSTASIA & HARPAZO, the rapture message is crystal clear.

The encouraging message above given by the Lord calls for a jubilant outburst of song and praise. Can you doves join me in singing,  ‘I’ve Got My One Way Ticket To The Sky’ by Hank Williams (link)?

Obama the Antichrist

The Lord Jesus clearly communicated the rapture message with His purposeful use of these two Greek words — APOSTASIA & HARPAZO. Everyone knows the rapture can only happen around the time when the antichrist rises and takes the reign of world power. If we know with certainty who the antichrist is, then our confidence for a soon departure will receive a big boost. This is exactly what is happening here I hope. If Obama turns out to be the antichrist, the worst case scenario for our escape can be no later than 2017 assuming he serves two terms.

Just as many doves  (me included) are growing weary in waiting, Jesus sent this confidence booster to keep our blessed hope alive.

Jesus sent me the message in the morning of Aug 6, 2010. Out of curiosity, I backed 646 days (Strong’s 646: APOSTASIA) from this date to see which day in history it falls on. Be prepared to let your jaws hit the floor. This is the day the 30-minute Obamamercial was aired on Oct 29, 2008, the day many believe the beast was revealed to the world, promising CHANGE!

The Apostle Paul links APOSTASIA with the REVEALING of the MAN OF SIN (2 Thess 2:3). Jesus links APOSTASIA with the REVEALING of BARACK HUSSEIN OBAMA!

The number 646 positively identifies BARACK HUSSEIN OBAMA as the MAN OF SIN when we put two and two together!

But there is more.

An entire article may be devoted to linking Obama with black stone 666. But there is no need to get too bogged down with more numbers. Jesus sent the license plate number, DP 3368, which contains two key pieces of information: Obama the antichrist and the soon rapture. Because Jesus sent the number 3368 to me, I know it is the sum of the three colored values of black stone 666 in the Genesis 1:1 Pyramid:

3368 (LJC) = black stone 666 + blue stone 1766 + red stone 936

Is it coincidence that I received the message on Aug 6 (8-06) and the number 806 is the 666th composite, or non-prime number?

On the Jewish calendar, Aug 5 is Av 25 (Aug 6 in Singapore is Aug 5 in America where Obama resides), or the 11th month 25th day on the Hebrew civil calendar. Is it another coincidence, then, that the amalgam of month-day numbers, 1125, is the 936th composite, linking with red stone 936 — confirming yet again the 666 beast?

For a message to be valid, double witness is a must. How much more impressive the message came with triple double witnesses!

Double Witness #1: Strong’s 646 APOSTASIA (646 days between Obamamercial 10.29.2008 & date of rapture message 8.06.2010 and time of rapture message at 6:46).

Double Witness #2: Strong’s 726 HARPAZO (7-26 July 26 drama broadcast date and time of departure at 7:26)

Double Witness #3: Black stone 666 (666th composite is 806, i.e. 8-06 or Aug 6 on day of rapture message) and red stone 936 (936th composite is 1125, i.e. 11-25 or Av 25).

Morning has broken

Is there a hint from the Lord as to the timing of the rapture? Maybe yes. Maybe no. You be the judge.

The man in the movie has an interesting Chinese name; it consists of a single character, 晨, which means ‘morning’, ‘dawn’, or ‘daybreak’.

The psalm that conceals the hidden prophecy pointing to year 2010 is Psalm 110; verse 3 of this psalm is interesting to say the least: “Thy people shall be willing in the day of thy power, in the beauties of holiness from the womb of the morning: thou hast the dew of thy youth.”

The Hebrew for the word, ‘morning’, used in this scripture is ‘mishchar’. It appears NO WHERE ELSE in the Bible, making it an unusually rare word, don’t you think?

Will the Bright Morning Star come for His bride this year? Will we be soon singing ‘Morning has broken” (link) and ‘Beyond the sunset’ (link) with the saints in glory when the day is finally done?

May it be so!


Written by twelvebooks

August 17, 2010 at 9:10 pm

Aug 17, 2010 A celestial analysis of the Feast of Trumpets 2010

Written by twelvebooks

August 17, 2010 at 8:22 pm

August 16, 2010 U.S. Dollar Now Ripe For Catastrophic Devaluation

August 16, 2010

This is a depressing but realistic article about the economic state of our nation. Our elected representatives have allowed through their criminal negligence or willful manipulation the deterioration of the USA economy for the purpose of destroying this country and bring its freedom loving citizens in a slave capacity to the elitist manipulators bent on a one world government with the enslavement of the world populations.

The Bible refers to this system as the rule of the Antichrist and the book of Revelation gives a detailed rendition of the coming seven years of Tribulation.

Economic collapse is only one of the many tools that will be used in the subjugation of the masses.

Thank you B.G. Ellis for the link to this economic article.


U.S. Dollar Now Ripe For Catastrophic Devaluation

<!–Posted:–> <!–Author:–> <!–Filed under:–> 39 Comments »

By Giordano Bruno

Neithercorp Press – 08/09/2010

Normally when I cover subjects in the economy, I try to take a “macro” approach, giving an overall view of various financial elements around the world and how they are clearly connected to one another in a greater synchronous social force. That is to say, in Chinese domestic consumption, or European debt obligations, or Russian gold reserves, and in many other factors, is encoded the very future of our own American economy. Showing others how to decipher that code is my primary mission.

In this instance, however, I would like to focus chiefly on the U.S. Dollar, the private Federal Reserve currency which is now the basis for our entire financial system, not to mention a substantial basis for trade around the globe. For decades, the dollar (and by extension U.S. Treasury bonds) has been the standard by which foreign nations safeguard capital reserves, denominate debt, and in some cases have even pegged their own currency to maintain advantageous trade deficits. In the past, the Greenback has been treated as good as gold. Though many see this as a windfall for Americans, it is actually a very unfortunate circumstance.

The “world reserve” status of our currency created a demand for dollars, but through this, it also created a glut of Treasury bond holdings in foreign central banks, and an unserviceable national debt here at home. The combination of removing the dollar from the gold standard in tandem with gaining world reserve advantage allowed our government along with central bankers to create the most precarious illusory fiat currency in history. Could this process continue indefinitely? Its possible, but only if the demand for dollars continues to rise annually. As long as people want dollars in greater and greater amounts, we could continue to expand our debt into infinity. But what happens if demand for the dollar falls, or disappears entirely? The massive liabilities we have already accrued will no longer have the crutch of perpetual Treasury investment. We no longer would receive the busloads of foreign capital we need to continue functioning. The system we have staked the future of our culture on would disintegrate.

Anyone who uses common sense would easily conclude that it is highly unreasonable if not outlandish to expect that other countries will continue to pump more and more money every year into our very unstable system. Even if Treasury bond investment simply plateaued, remaining steady for years, we would still be crushed under the weight of our debt obligations. As our government expands, and our wars expand, so do our costs, and our interest payments. Eventually, every undisciplined debtor hits a state of critical mass; a point at which he runs out of options in extending his ability to outrun bankruptcy. We are seeing this right now in the U.S., most prominently in municipal debt in states such as California and Illinois. These are not just “local problems”. The growing insolvency in states is a direct reflection of the growing insolvency in the Federal Government.

Many people have at one time or another been caught up in their own debt race, trying to dodge bills and pay off one credit card with another credit card. They understand well that this terrible circle ends in ruin. This is the situation we are in as a nation.

Strangely though, some mainstream economists and analysts still contend that America will never face consequences for its fiscal debauchery. Why do they believe this despite all the evidence to the contrary? Because of a magical machine called a “printing press”.

“If foreign investment in our debt ceases”, they say, “The Federal Reserve can just PRINT the money our government needs to function out of thin air.” That is to say, these economists (which include men like Ben Bernanke) either truly believe that capital can be created out of nothing with no sacrifice attached, or, they KNOW there is a serious sacrifice attached, but intend to keep this fact from the American public. Regardless, the end result is the same; massive liquidity injections which continually monetize debt as it defaults, and Federal Reserve purchases of our own T-bonds. We are buying stock in our own dollar just to prop up its value and keep our country afloat!

The inflation vs. deflation debate has been raging for nearly three years, but I suspect that when all is said and done, we will find that both sides in a sense were correct. The people who consistently miss the mark on what is truly going on in the economy are those who blindly insist that this is an either/or situation. The fact is, we are seeing symptoms of BOTH deflation and inflation simultaneously. Deflation in jobs, stocks, real estate, and wages. Inflation in energy, food, and commodities. At bottom, we are seeing the worst of both worlds colliding to make a financial mutation, an aberration of the natural processes of supply and demand. Our economy has become a frothing rampaging Frankenstein’s monster bent on the destruction of its former benefactors; the American citizenry. Anyone who alleges otherwise is either a liar, or a fool.

At the very heart of this nightmare, we find the U.S. Greenback; perhaps the number one reason the economic meltdown was engineered by global banks in the first place (yes, I said ‘engineered’). The sovereign ideology of the U.S. is the only thing left standing in the way of complete centralized economic control, and by extension, political control, by the top 2% wealthiest people in the world, who now hold around 50% of all the world’s assets. The dollar, though a fraudulent fiat currency, is still a representation of that sovereign drive, at least in terms of finance. Its position as the foremost traded currency on the planet affords us great leeway in our ability to spend without fear. It is the glue holding absolutely everything together. With most of our industry shipped overseas, and our communities completely reliant on a 70% service based system, the Dollar is the only homemade “product” America has left to lean on.

Unfortunately, the strength of our currency is waning, and nearing outright collapse. It is something we have been talking about for the past two years at least, which has drawn some into a false sense of security. The signs have been muddled in the MSM fog, but now the picture is becoming clear. Will the dollar crash tomorrow? That’s hard to say. What I do know, is that all the elements necessary for a catastrophic dollar devaluation have moved into place, especially in the past month. That is to say, there is now nothing preventing a steady and precipitous fall in the Greenback over the next six months or more. Below are many signals which indicate such an event is near:

Dollar Index Plummeting: Interestingly, there has been very little coverage in the mainstream news of the dollar’s continuous 9 week decline, the longest straight weekly decline since 2004. One would think this is something that might concern the general public, and not just investors:

The dollar is also nearing a 15 year low versus the Japanese Yen:

Only in the past few days have some MSM analysts ventured a response to this issue. So far, their primary excuse is that the dollar decline is due to the coming Federal Reserve meeting on August 10th, in which many suspect that the Fed will announce further stimulus measures and further inflation of the dollar. Of course, most Fed stimulus has remained undisclosed to the public, so there is really no way of knowing if they ever actually stopped their injections at all. Also, this excuse does not explain the 9 week duration of the dollar slide, especially since two months ago very few people even considered the possibility that the Fed would openly announce more liquidity measures.

Some economists might argue that the dollar has declined severely in the past, but has always come back. That is true, however, in those instances the dollar was not falling at the same time as stocks! Yes, the traditional inverse relationship between the DOW and the dollar seems to be ending, and this is a dour sign for the Greenback. In the past, the dollar has benefited as a safe haven investment. When stocks went south, investors would throw their money into dollar backed securities like Treasuries in order to protect their savings. This caused the dollar to go up in value. In the past few months, though, the dollar has begun to fall in tandem with stocks, meaning, people no longer trust the dollar as a safe haven investment as they used to. If this trend continues over the next few months, it may be a sign of nearing dollar collapse.

For those who want to keep tabs on the dollar index, go here:

China In Position: We have been warning at Neithercorp Press for years that China was positioning itself to dump its vast holdings of U.S. Treasury bonds and allow its currency, the Yuan or RMB, to appreciate in value. China has aspirations of world reserve status, and they have openly stated their goal of replacing the dollar as the premier internationally traded currency. I received a lot of ridicule back in 2008 and 2009 for suggesting that China was morphing its financial system away from exports and becoming a consumer based hub for the East in preparation to dump the dollar. Needless to say, China has indeed done this, all while MSM talking heads and their parroting followers continued to deny it was occurring. Now, members of China’s financial community, including former central bank advisers, are openly calling for the Chinese government to end its investment in American debt:

This news is compounded by an announcement from the Chinese Central Bank which set the gold investment community ablaze; China’s government is now fully opening markets to support gold investment and is even helping its banks to begin diversifying into gold:

In China’s strictly controlled economy, such a change of policy is tremendous news with serious implications. China is the largest gold producer in the world, yet, the demand for precious metals is so high (especially by their central bank) that they are increasing shipments from overseas sources. This is good news for gold investors, but bad news for the dollar. China suddenly opens the gold floodgates (gold is the primary hedge against dollar collapse) while at the same time openly discussing the liquidation of their U.S. Treasury reserves? This is not a coincidence.

Another factor of some weight is the issue of weak spending power within China. Some argue that China’s low interest rates are creating a savings shortfall for Chinese consumers, making their move towards a consumption based economy difficult. What they don’t realize though is that this is yet another reason for the Chinese government to dump T-bonds and create a surge in the Yuan’s value. This would be an ideal method for increasing the buying power of the Chinese consumer:

Whether or not China’s goal is to help global banks deliberately destroy the dollar, they have the perfect alibi: The U.S. government demanded that China let the Yuan rise in value, China’s new consumer based economy needs a stronger Yuan if they are to survive, and the U.S. dollar is no longer a safe investment anyway. I’ll say it again; China is now ready to dump the dollar at anytime.

Housing Market Threatens Dollar: Remember Fannie Mae and Freddie Mac? You know, the mortgage agencies which hold $5 Trillion in sinking real estate securities? The companies that our Treasury has promised a never-ending bailout to? Well, they are back again. Fannie Mae has asked for yet another bailout after continued shortfalls. I have lost track of how many bailouts this makes:

These bailouts drag directly on our national debt, and are costing the American taxpayer billions. Why do Freddie and Fannie still need money? Because the housing market is still falling apart! The Treasury and Barack Obama recently admitted that they had “underestimated” the number of homeowners who were still behind on their mortgage payments by two months or more even after receiving government help through the HAMP program:

Nearly 20% of homeowners who received government aid are re-defaulting on their mortgages or are near re-default. The government originally reported that the number was only 7.7%. I remember well when the skewed numbers were released and the stock market rallied in jubilee at the success of the HAMP measures. It seemed to me that the government numbers did not jive at all with the rising rate of foreclosures. According to the Obama Administration and Treasury officials, it was an “error” on the fault of Fannie Mae. I suspect it was not error at all, but a deliberate effort to artificially pump up the so called recovery, just as the Labor Department has done in the past with unemployment statistics.

What does housing have to do with the Dollar? First, the Treasury’s commitment to Fannie and Freddie has placed the U.S. taxpayer at the edge of an endless debt vacuum. As long as real estate continues to crumble, as long as people continue to lose their jobs and default on their mortgages, we will have to continue bailing out Fannie and Freddie. This creates the potential for trillions of dollars of debt that will be monetized by the Federal Reserve, putting even more strain on the dollar. Second, the further into debt our country goes, the more tempted other countries will be to back out of U.S. Treasury investment. Currently, the vast majority of Treasury purchases by foreign buyers are short term, maturing in a matter of weeks. The U.S. cannot sustain itself on short term investment. I believe that our nation’s debt issues including the endless fallout from the mortgage crisis will cause a detrimental loss of faith in the dollar and I believe this will occur soon.

States Will Ask For Their Own Bailouts: States have accumulated over $2.4 Trillion in municipal debt (official number) over the past two years alone:

Local bond debts now take up at least 22% of our country’s GDP. These figures do not include the states’ $3 Trillion in pension obligations, which means we are looking more along the lines of 50% of our national GDP tied up in state debt. This has caused some Federal programs to be implemented while others are diminished. For instance, $14 billion has been taken from ‘future’ 2013 food stamp programs to help pay for teachers and school lunch programs now:

How this works, I’m not really sure. It sounds very similar to the government method of “borrowing” from future Social Security accounts to pay for other programs today. It’s not surprising that Social Security is now (officially) in the red, and it is guaranteed that my generation will not see a penny of it when we retire (Retire?! Ha! I crack myself up!):

The point is, not only California and Illinois, but many other states as well, are on the verge of municipal default. Some agencies still rate municipal debt very high, but they also rated subprime mortgages very high, and look what happened! No one in their right mind wants to touch municipal bonds today, and this will invariably lead to insolvency in cities and states, I believe we will see this begin before the year is out.

The response will be predictable; states will ask for Federal assistance to the tune of billions, leading eventually to trillions. States did receive some bailout funds up until December of last year, but it was nowhere near the capital they needed to survive. States are also rapidly losing revenues due to lower property taxes, lower consumer activity, etc. They have nowhere else to turn except a new Federal bailout specifically designated for municipal debt (unless the states want to actually grow some courage and assert 10th Amendment rights, taking back full control of their economies).

Again, the issue is and always has been DEBT. No government in the world has the ability to truly solve debt problems with more debt. There is always a price in making the attempt, and the price is usually steep. In our case, the price is the destruction of our currency. State debts will translate to Federal debts, which will translate to fiat creation and monetization, which will translate to loss of dollar faith, which will translate to loss of the dollar, period.

Turning Point For The Dollar, And For Us…

If you feel like you are looking out over the ocean at the towering black anvil cloud of an approaching tempest, that’s because you are. There are always indicators. The air electrifies, the waters whip and swell, the atmosphere grows heavy. Economics is the same way. After a time, you begin to feel the intensity of the financial stratum. The imbalances of the markets crackle, and thunderous roar of the typhoon grows near.

I and many other researchers hear this sound in terms of the U.S. dollar. The potential for a monetary breakdown has arrived.

I find there is persistent confusion amongst analysts as to what constitutes inflation. In my humble opinion, any event which causes the dollar to devalue and prices to rise is inflation. This does not necessarily require “overprinting” of physical money to take place, though I do believe overprinting is happening behind closed doors. The dollar can be compromised in many ways, not just through runaway fiat creation. Any loss of our world reserve status will result in a major devaluation. Any extended dumping of U.S. T-bonds by other countries will result in major devaluation. The endless accumulation of national debt without the backing of foreign capital will result in major devaluation. All of these problems are active in our economy right now. The end result; simultaneous inflation and deflation, and they don’t cancel each other out!

Some people regard this kind of information as “fear mongering”, or “doom and gloom”. Fear mongering suggests an exaggeration or even fabrication of facts in order to frighten the reader towards some particular end. It’s supposed to somehow benefit the fear monger. Nothing written above is an exaggeration, only a relay of the cold hard reality we face as a society, and frankly, I gain nothing by frightening anyone with these facts, not even notoriety, since I report under a pen-name. At bottom, if someone is terrified by the truth, that is their problem, not mine. The accusation does make me grin sometimes…

I have even come across a few people in the survivor and preparation field who seem strangely bothered by our efforts. The behavior is puzzling, but I suspect that some see the realm of collapse information as their own personal domain, one they would like to keep to themselves. And some, perhaps, feel that we are dwelling too much on the activators of collapse, when we should just make a few preparations and then go on with our day.

I and other researchers do what we do because we want others to be aware and organized. We give you the difficult data because we want you to stay informed and up to date on the latest developments, developments we feel you have a right to know about and the strength to take. Our goal is to fill the void of information that the MSM has left in its wake. There is a difference between paranoia, and vigilance. The paranoid only see threats in truth, threats they feel they can do nothing about. The vigilant see opportunities, ways of using the truth to deal with the dangers ahead. By keeping track of economic developments, the vigilant are far more mentally prepared than any survivalist who chooses to ignore them.

The gravity of the coming currency crisis is a crucial issue. According to the data, it is no longer a question of ‘if’ but ‘when’ it will reveal itself completely. We aren’t dealing with hypotheticals here, we are dealing with eventualities. The sooner the American public accepts this, the sooner we can confront the trouble head on.

Written by twelvebooks

August 17, 2010 at 1:35 am