classical economics
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Criminal Economics 2016

First Remove Your Major Media Lens
By Wayne Jett © January 7, 2016

      Year-end 2015 finds the world deeply troubled, but with important recent successes in avoiding worse events. American social, economic and military collapses are looming. World war has been avoided so far, but the largest battles since World War II are underway, and important nations are involved. The outcome can become a net positive, but only if the transition is accomplished without world war and the evil shadow government that has abused the nation and the world for two centuries is destroyed. These are two tremendous challenges. The coming year will not be easy business as usual for Americans. 
        For the few who find these statements neither shocking nor even news, you find no pleasure in it, for you know the extra burdens of dealing with reality. So many others are unaware of the context of their challenges. This discussion undertakes to inform both the few and the many.

                                                                            Advent of the New Republic

        A secret shadow government was named “the New Republic” at the outset of the 20th Century. Its expressed agenda was to influence, weaken and undermine the institutions of government in America and around the world so that elected governments would collapse. Hidden rulers of the New Republic would then assume full power in a two-class society comprised of rulers and their servants. The “idle rich,” all middle classes capable of self-support and all “people of the abyss” would be eliminated by wars, diseases or poisoning.
        Primary instruments for advancing this agenda were to be (a) a graduated tax on incomes earned by the middle class, and (b) a network of privately owned central banks managing currencies used by governments and the middle classes of the world. Both a private central bank (Federal Reserve) and the graduated income tax were created in the U. S. in 1913, with approval of President Woodrow Wilson, who as Democratic Party candidate in 1912 had promised to oppose both. The Democratic Party claimed to represent the ordinary working people of America, and its first candidate was Andrew Jackson, who in fact defeated renewal of the charter of the previous central bank of the U. S. in 1833.
        Promptly after creation of the Federal Reserve, the controllers of the shadow government initiated World War I (the “Great War” aka the "War to End All Wars") to kill millions of soldiers and civilians, especially the English, Germans, French and Russians. In 1918, as WWI was coming to armistice, the “Great Influenza” exterminated more Americans than all U. S. wars combined, plus millions more around the world. The “Great Depression” of 1929-1940 was deliberately imposed by the New Republic to weaken and destroy the middle class, starving millions to death and impoverishing millions more. The Great Depression was ongoing when the New Republic orchestrated World War II to usher millions into the grinding jaws of death by warfare.

                                                                 Speaking Clearly About the Federal Reserve

       When Andrew Jackson battled the Second Bank of the U. S., he did not mince words in characterizing those who ran the bank. He called them thieves, scoundrels and every other name he could bring to mind. He did so to be sure the public understood the dishonest nature of banking practices which secretly enriched central bankers and their principals at the expense of ordinary people. Today such candid talk as Jackson’s from any official, public or private, is rare or non-existent. The New Republic co-opts opinions of elected and appointed officials, academics and all major media. Scarcely a word is published by print or electronic major media outside the carefully constructed limits of “mainstream” opinion.
      Let’s examine practices at the Fed and consider whether Jackson was off base. Or, are major media, asset managers and financial economists? Since 1971, the Fed has been allowed to create dollars according to its own policies and without a public audit of its practices. The Fed still pretends to manage the dollar currency by controlling the interest rate charged banks for borrowing overnight funds from reserves. But the “Fed funds” interest rate has no controlling effect on the number of dollars created or their unit value. The Fed funds rate simply serves as a bench mark allowing big banks to set the lending rates uniformly, stifling competition, while the same big banks expand with borrowed capital at very cheap rates.
      These deceptive practices greatly enrich the big international banks which own the New York Fed. And, importantly, the Fed secretly chooses the quantity of new dollars created, thereby intentionally causing “inflation” or “deflation.” These terms were chosen again to deceive – to place attention on rising or falling prices of goods and services rather than on the falling (or rising) value of each dollar. Richard Nixon, the U. S. president who gave the Fed this power to “manage” the dollar’s value, even created a Cost of Living Council and wage-price controls to distract attention from the Fed’s new discretion to create inflation.
       But there really has been more going on than just “manipulating the dollar’s value.” The Fed already claimed “independence” from audit of its activities. Nixon then gave the Fed authority to create dollars as it saw fit. Then Congress made that highly exposed condition far worse by giving the Fed regulatory powers over all private banks. The “too big to fail” international banks of Wall Street finally had the tools to pound thousands of smaller commercial banks into oblivion, while the TBTFs themselves expanded coast-to-coast in the U. S.
       All “market operations” of the Fed are performed by the New York Fed, which is privately owned by its member banks, the giant international banks with offices on Wall Street. So the New York Fed could create dollars and give or lend them to anyone, including its owners. Without comprehensive public audits, anything is possible, and probable. From where would the value of those secretly created dollars come? In the answer to that question lies the real beauty (for the owners) and the real horror of a private central bank.
       Dollars are “fungible,” meaning every dollar is the same as every other dollar in value and use. As soon as the Fed creates new dollars, the new dollars draw or extract value from previously existing dollars. Instantly, every dollar is worth the same as every other dollar. The catch is that the new total number of dollars still has the same total value as before the new dollars were created. Thus, the Fed’s newly created dollars suck their value out of the dollars previously created and accepted in exchange for goods, services and assets. (The only theoretical circumstance in which this is not the case is when people work and produce additional goods and services equal in value to the newly created dollars and accept the dollars in exchange for the goods and services.)
       The Fed and its acolytes call this currency management, or stimulation of the economy, 0r quantitative easing, or a dozen other euphemisms to mislead the public and disguise the substance of its actions. President Jackson would call it outright thievery on a gargantuan scale, and the people who do it scum of the earth.
       If the dollars wrongly created by the Fed were actually used for public purposes, as tax revenues are supposed to be used, the Fed’s excessive money creation could be viewed as a monarch’s ideal form of taxation without need for even a tax law or a tax return. The new money would get its value out of the earnings and capital of every user of dollars instantly with the Fed’s wire of “funds” to Treasury.
        But what limits the Fed to creating new dollars only for the U. S. Treasury when nobody is watching? The fact is, nobody is ever permitted to watch! So we can be certain the Fed does as it pleases. To spell it out, the zero-interest-rate-policy (ZIRP) openly creates trillions of new dollars and provides them to international, too-big-to-fail banks at almost zero interest. Secretly, the Fed creates dollars and gives them to its owners. Nothing prevents it, but we see no records of this activity.

       Do you perceive the enormity of these wrongs by the Federal Reserve against Americans and the world public? Or the treasonous conduct of Congress and the president in allowing it to proceed? The Fed’s charter enables that syndicate of oligarchs to rob, steal, pilfer and extract ever-increasing portions of the value of all capital created by the labor, ingenuity and productivity of Americans and dollar-users worldwide. If you do not realize that your own business undertakings and investments have very significant negative drag created by the Fed – much too negative to be ignored – then you have serious questions to ask and answer for yourself.

                                                                       The "Strong Dollar" Hoax

     Does anyone care to make the case that the world is experiencing a genuinely “strong” dollar reflected in increasing buying power? Or, that we have a deflationary monetary environment? Surely not in this era of total monetary profligacy on the part of the principal reserve currency. Look hard at the facts.
      The dollar appears strong relative to exchange rates with other currencies, but why? Smaller economies want to sell into the U. S. market, so they try to cheapen their currencies relative to the dollar, making cheaper what they have to sell here. But that is not deflation. The dollar still loses purchasing power in relation to goods and services produced here, as new dollars are created far exceeding the value of growth in productive output.
       Those seeing deflation argue first that prices are falling. But prices fall when demand collapses, and oil is not the only example. More likely, oil is a harbinger of conditions in the broader economy.
       Few economists will go to what was, a mere 15 years ago, the best and only necessary proof that deflation is at hand. The price of gold has been declining and, by appearances, may be in deflationary territory as compared to dis-inflationary (above the median gold price during the past ten years). In 2000, maybe even in 2005, the price of gold was a dependable measure of currency value.
       No longer. The price of gold is now manipulated in the U. S. The gold price is manipulated by those who argue gold has no role to play in judging the value of the dollar, because the manipulators know the rest of the world disagrees with them. They manipulate the price of gold lower to convince the rest of the world that the dollar is worth more than is actually the case. If the gold price were at, say, $3000 per ounce and rising, who would believe the dollar is “strong?”
      How is the manipulation done? In two principal ways: (1) the spot price of gold is set in New York based on trading in gold futures contracts, and it is possible to sell a lot more “paper gold” than real gold, thereby pushing the price down; and (2) the international banks of Wall Street have created artificial demand for dollars, temporarily creating false demand for dollars, by trading in interest rate derivatives with face values equal to hundreds of trillions of dollars. Both (1) and (2) are deceitful and highly risky, but evidence is that each has been done.
       Since both manipulations are occurring, does this mean the nation is experiencing deflation? No, it does not. Creating false impressions does not mean the conditions or their eventual outcomes will be the same as if the impressions were true.

                                                            Other Crimes Major Media Keep Secret

       Lest you mistakenly assume monetary sleight-of-hand at the Fed and on Wall Street is the only type of wrong-doing by the cabal controlling the New Republic, here is an abbreviated listing of other types of their handiwork.
1.    Cold War Terrorism. Since World War II, the CIA has engaged in actions against civilian targets in Europe and elsewhere, blaming the terrorism on communists or other “radicals.” Check into Operation Gladio.
2.    OBL. Osama Bin Laden was a CIA operative known as Colonel Timothy Osmun, who remained in good standing with the CIA at the time of his death from natural causes in December, 2001.
3.    World Trade Center Attack. The destruction of three major buildings of the World Trade Center on September 11, 2001, was done by at least two foreign governments still called the U. S.’s “closest allies," with important assistance from major officials in the U. S.  The third building destroyed that day was adjacent to the twin towers (WTC1 and WTC2) and was known as WTC7. WTC7 contained perhaps the largest bank in the world. That bank had on deposit a very large quantity of gold, none of which was found in the rubble. No plane was alleged to have hit WTC7.
4.    Pentagon Attack. The “airliner” which crashed into the Pentagon on September 11, 2001, was a cruise missile targeted to kill the Naval Intelligence team known as Able-Danger, which was near completion of its report on nuclear warheads missing from the U. S. arsenal.
5.    ISIS Sponsors. ISIS, the so-called Islamic State in Iraq and Syria, was created by the CIA and two of the U. S.’s “closest allies.” ISIS operations are controlled from a command center located in the U. S. embassy in Ankara, Turkey. The U. S. pretended to bomb ISIS by sending aircraft into Syria for more than a year, while ISIS fighters increased in numbers and arms. At Syria’s request, Russia began bombing ISIS in late 2015 and essentially destroyed ISIS’ offensive capabilities within little more than a month.
6.    Ukraine Coup. The bloody coup in Ukraine which killed civilians and overthrew the elected government in early 2014 was a CIA operation conducted with un-uniformed civilian mercenaries plus operatives of a “close ally.” The State Department had spent $5 billion destabilizing Ukraine in preparation for the coup. The puppet regime installed in Kiev promptly began a civil war against eastern, Russian-speaking provinces, bombarding cities and civilian neighborhoods, and shooting an airliner out of the sky with an air-to-air missile. The coup aimed to prevent Europe from being supplied with natural gas by pipeline from Russia, to gain closer access to Russia’s border for military purposes, and to “liberate” Ukraine’s 33 tons of gold for safe-keeping by the Fed, plus other objectives.
7.    Russian Jetliner Shoot-down. The Russian jetliner filled with tourists returning from Egyptian vacations was shot down by an air-to-air missile about a half-mile from the Israeli border, where U. S. and NATO jet fighters were participating with Israel in a very large “war games” training exercise.
8.    Turkey Shoots Down Russian Bomber in Syria. A Turkish F-16 jet fighter shot down a Russian jet bomber with an air-to-air missile in Syrian airspace, alleging that the Russian military plane had violated Turkish airspace for a few seconds. Turkey’s President Erdogan, rather than apologize or pay damages, asked NATO allies for military protection against Russia. European nations refused, as did the Pentagon. The shoot-down of Russia’s bomber (which was attacking ISIS targets in Syria) was reportedly ordered by the CIA.
9.    Black Sea Demonstration Turns Off AEGIS. In April, 2014, when the coup in Ukraine was fresh and the worst fighting by the Kiev government against the eastern provinces was still ahead, the USS Donald Cook, a Navy destroyer armed with Tomahawk cruise missiles and the AEGIS electronic warfare targeting system, sailed into the Black Sea where Crimea, newly rejoined with Russia, provides Russia’s most important warm-water naval base. A single Russian fighter-bomber SU-24 was detected approaching, and the AEGIS targeting system swung into action. As the Russian plane, said to be unarmed, came closer, the AEGIS screens on the Cook went dark. The SU-24 proceeded to make a dozen simulated bombing runs at the defenseless USN destroyer, then flew away. The demonstration made its point. The Cook exited the Black Sea immediately, and no USN ship has returned. USN aircraft carriers have now left the Persian Gulf. The Black Sea experience of the Cook, coupled with Russia’s performance in dealing with ISIS in Syria, have caused the Pentagon (at least a significant part of it) to reassess the wisdom of initiating war with Russia, Iran and China, and to seek strategies more consistent with interests of the American public.
10.    Afghanistan's Heroin Production. Since the U. S. invasion of Afghanistan in late 2001, the amount of heroin produced in that country has increased from about 7% to more than 90% of world production. Both the U. S. military and the CIA have propelled this dramatic increase in production. Families prominent in both major U. S. political parties are big players in global trafficking of heroin and cocaine, which provide profits upwards of $500 billion to $1 trillion annually to fund clandestine operations, including mercenary armies.
11.    U. S. Biological Warfare Facilities in USSR. Russia recently disclosed through diplomatic channels that the USG secretly built a network of biological warfare facilities in the former Soviet Union. The facilities were to be used in exterminating populations around the world, a primary objective on the New World Order agenda. Russia intends to present evidence of these alleged violations of international law to the United Nations.

                                                     Geoengineering: Deadly Intent Rides USG Jets

        Looming above each major concern on the abbreviated list above is a crisis of overriding urgency, so crucial in its impact on all life on earth that it must be discussed separately. The USG is secretly deploying against America and globally an extensively patented technology called “geoengineering.” The term is used to mislead the public into thinking the technology’s purposes are to make beneficial changes in weather and climate, and to cool the earth by defusing sunlight and reflecting it into space.
     In 2001, the National Aeronautics and Space Administration (NASA) secretly called the same technology “micro-dust weaponry” and “a mechanical analog of biological warfare” to be used during the first 25 years of the 21st Century. Micron-sized (one billionth of an inch) metal particles of aluminum, strontium, barium, plus sometimes biological agents, are sprayed in aerosols from specially outfitted jets. As the sprayed trails descend and spread, the particles often are activated, charged, heated or otherwise manipulated by electro-magnetic radiation. The EMR is generated by a global network of facilities usually called HAARP. The particles disrupt natural weather, causing drought, flooding, severe heat or cold, violent storms, according to the planned objective, then settle and invade every living organism – human, animal and plant. Their toxic effects on humans are so diverse as to be difficult to attribute to a particular cause, and especially so when major media refuse to report it and most people fail to look up into their own skies to see it. More recently, NASA has admitted its own “experiments” spraying American populations with lithium gas, which destabilizes human conduct and can be fatally toxic.
        Geoengineering creates severe weather by injecting heat into the atmosphere or by using chemicals to create either extreme cold or the appearance of snow/ice in temperatures above freezing. Diversion of jet-streams with artificial high pressure cells causes record extremes of heat, cold, flood and drought. Diversion of jet-streams has shifted ocean currents.  Warmer than normal water is now flowing into the Arctic, where rising water temperatures are thawing previously solid methane hydrates on the ocean floor. Prodigious volumes of methane gas are rising from the Arctic with predictable effects of creating Venus-like conditions on Earth, too hot to permit life. This is not merely a long-term possibility. It is a near-term predictable result of the USG conduct described. The United Nations assists in managing global activities of the same nature.      

                                                                   Our Challenge: Deal With Reality

        Each and all of these concerns are within the province of our responsibilities as economists, investment managers, executives and heads of households. No one has the luxury of a force majeure clause assuming “all other things being equal.” Analyses, forecasts and advice are either good in the real world, or they are no good. If forecasts or investments are made based on assumptions that the USG does not fall, that the dollar does not collapse, that no world war ensues, or that the Fed has benevolent intent, due diligence to justify each assumption is an absolute necessity.
        At this late date, if you have the slightest inclination to presume good intentions of Federal Reserve or USG officials, you may wish to consider your place on the learning curve of U. S. policies and global agenda. Are you already fully convinced the USG’s highest officials intentionally imposed the Great Depression on Americans and the world? If you are not, then consider reading The Fruits of Graft and doing your homework to research its referenced proofs. In that regard, focus also on the ways in which the Fed, the SEC and the Commodities Futures Trading Commission aided and abetted the biggest financial criminals in the “tech crash” of 2000-2002 and the financial terrorism of 2008. 
        Each of us has great challenges in the weeks and months ahead. Good luck and best wishes as you proceed. ~