Trillions from space aliens: Obama and Congress look to outer reaches of galaxy to help the Fed monetize the Milky Way

Headline: Fed to pump another $1 trillion into U.S. economy "Saying that the recession continues to deepen, the U.S. Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the economy by buying mortgage-backed securities and long-term Treasury issues."

From where does this additional trillion come from? My money is on space aliens, because there is no government on planet earth that has anymore money to throw into the hell-hole known as international banking. Since the breakdown of Bretton Woods under Nixon, money, as authorized by the Constitution, has ceased to be.

From whom can we borrow when it becomes obvious to everyone that we have a debt that can NEVER be repaid? According to the Fed, it's not a problem. Sure. Why borrow when you can print? Monetize the debt and pay it back with inflated paper. Sound reasonable to you? I just held a Zimbabwe "One Trillion Dollar" note yesterday. That currency has collapsed.

"Higher prices are the result of inflation, not its cause."

Of course, the inevitable result of Federal Reserve hyperinflation is flight from the U.S. fiat dollar. That's when your loaf of bread is bought with a wheelbarrow full of paper. How dumb do you have to be to be an economist?

The delusional descendants of John Maynard Keynes refuse to grow up. Instead, they smoke the never-ending supply of Federal Reserve Notes in the hopes of re-inflating the economic bubble devoid of oxygen, especially because the "pump" is manufactured by fractional reserve banking. Here is a reasonable suggestion from Ron Paul:

"HR1207, dubbed the Federal Reserve Transparency Act of 2009, will give the Comptroller General of the United States authority to audit the Federal Reserve."

Support it only if you want to see how deep the monetary rabbit-hole goes. For those of you who don't, there's always Prozac. Lord knows what you'll use to pay for it when the world flees the Federal Reserve Note dollar...

Confused About the Economy? Go to the Bailout Reader

While most of congress is dumbfounded by the economic events of late, the Austrian School has been spot on in predicting these events years (decades, in fact) in advance of their occurrence. During the presidential primaries, political pundits in the media ridiculed and marginalized Ron Paul when he spoke of the impending economic collapse. He was right, they were wrong. Now that you have been made aware of the dangers of fractional reserve banking and fiat money, how do you help your neighbors understand, before it is too late?

"The events taking place in the financial market offer an illustration of the soundness of the Austrian theory of money, banking, and credit cycles, and Mises.org is your source not only for analysis of these events but also the economic theory that helps explain what is happening and what to do about it."

Minds, they are a changin' -- just view the video below to hear Neil Cavuto of FOX News refer to Ron Paul as a genius:


Please link all of your family, friends, neighbors and colleagues to the contents of The Bailout Reader immediately and maybe you can help them avert economic catastrophe. It's never too late to change your consciousness. It's just that the later it gets, the more it tends to hurt (and for a longer duration).

What are you waiting for? Read the contents of The Bailout Reader now.

The Fed's Mystical Powers Versus Ron Paul's Campaign for Liberty

Headline: Paulson To Urge New Fed Powers "Treasury Secretary To Urge New Fed Powers; Bank Would Help Police Wall Street..."

Hmmm. Let's see, a private group of bankers can print money out of thin air and charge us interest for borrowing some of the "nothing" that they print. This same organization wants to "police" financial transactions with the blessing of congress. What has Paulson been smoking?

Criminals do not regulate, they enable more criminal behavior. Just because congress has abrogated its responsibility "to coin money and regulate the value thereof" does not make fractional reserve banking moral, ethical or constitutional. Evidently, there is the law and then there is the Federal Reserve.

"Our nation has come to expect the Federal Reserve to step in to avert events that pose unacceptable systemic risk," Paulson plans to say...

I wonder why anyone would expect a private banking cartel to be savior of U.S. and world financial markets? Perhaps because we have been programmed to believe in artificial reality over reality. The current economic crisis we all face is not due to "too much freedom" but due to government interference, over-regulation and the destruction of the dollar by removing it from finite, tangible value (i.e., gold and silver). So now what is Treasury Secretary Paulson's great idea? More market interference and stifling pseudo-government regulation through the private Federal Reserve System. This despite the fact that

"...the central bank has neither the clear statutory authority nor the mandate to anticipate and deal with risks across our entire financial system."

So why then do the preponderance of economic "experts" in government and media continually call for more of that which got us into this mess in the first place? Can you say "conflicts of interest?" It is not possible that 99%+ of all pundits out there do not know the REAL reason for inflation. How dumb of an expert do you need to be to not know that printing more fiat money results in the devaluation of every dollar you already have? Supply and demand my as-pirin. Oil is not $140 a barrel because demand is up. Global demand has actually been dropping due to increased prices. The reason that oil prices are not dropping along with it is because the oil producing nations realize that Bernanke has been printing Federal Reserve Notes like there is no tomorrow. At this rate, there will be no tomorrow for the fiat U.S. dollar.

"Bottom line it for me." O.K. You cannot solve a problem from within the same consciousness that created it.

I will say it slower for Ben Bernanke and the rest of the Keynesians out there. You cannot print, borrow or spend your way out of inflation that is caused by excessive printing, borrowing and spending, particularly to prop up the welfare/warfare state. This is precisely why government grows whether it is under the control of Democrats or Republicans. It is irresponsible not to speak this truth when such an impending and entirely preventable disaster rears its ugly head. Funny how the one man with great responsibility that actually pointed out this truth through this past primary election season was ignored, marginalized and ridiculed precisely BECAUSE he spoke the TRUTH.

Now Ron Paul has inaugurated the Campaign for Liberty so that the inmates running the asylum could be woken by the force known as We the People. If voting could actually change anything, it would have been outlawed long ago. If we lived as a free and responsible people, we would not be entertaining the potential financial collapse of this nation, nor would voting be much of an issue. When we live according to two simple laws, then all politicians and bureaucrats would be bound down by the chains of the Constitution.

Do all you have agreed to do and; do not encroach on other persons or their property. Thank you Richard Maybury. What is true for individuals is doubly true for their governments. In other words, if it is a crime for an individual, it is most certainly a crime for government. No matter who or what breaks the law, when the karmic bill comes due, the price is much greater when we maintain ignorance or arrogance. If we had lived responsibly in the first place, there would be no Federal Reserve and our money would be backed by gold and silver. Do you want individual liberty based upon economic freedom or economic slavery to fiat money by "helicopter" Ben Bernanke? You have always had the choice. If not, then you behave as if you are already enslaved.

The Fed has too much power already. That's why we are in this mess. Watch Congress give them more. Neither Obama nor McCain show any evidence of having the slightest clue as to the real reason for the financial trouble in which we drown. It's much deeper than the floodwaters of the Mississippi. Much. The only thing that could make it any deeper is to grant the Fed even more powers than it already has. Unconstitutionally, of course. Since when did that ever stop congress or the president? It's been a long time.

Got The Campaign for Liberty?

The Broken Bank of Fiat Money -- How Clad Can it Get?

Headline: Federal regulators close Arkansas bank ANB Financial "... banks closed by federal regulators over 'unsafe and unsound' practices..." What is unsafe and unsound about fractional reserve banking? Everything.

First, when the bank loans you Federal Reserve Notes, they have nothing at risk, while you are forced to sign your life away. For what? Evidence of debt.

Second, it wasn't for no reason that our Constitution clearly conveys that...

"no state shall make any Thing but gold and silver Coin a Tender in Payment of Debts..."

Is your bank on the brink of failure? How about the "money" that you use? There can be no legitimate argument in support of forcing a free people to conduct commerce with perpetually devalued paper currency. Unless you divorce yourself from any semblance of morality and ethics. If you "help" the poor by stealing from your neighbor, how is that a noble act? If you force people to work harder each year for a dollar that is worth less, how can you claim to be "for the poor and middle class"?

Economic slavery is slavery just as sure as selling human beings into bondage is, whether it be early Egypt, the British Empire, or early America. You know what this means? The modern-day Democratic Party is pro-slavery. The modern-day Republican Party is pro-slavery, except for the few that have called for the abolition of the Federal Reserve and the income tax.

"It was the third closure this year of an FDIC-insured bank..."

How many people fail to understand the nature of money and the difference between fiat and specie? How many bank failures are too many?

There are many texts that exist to fill in the historical gaps left from government school indoctrination, including those recommended by Ron Paul in his new book, The Revolution: A Manifesto. Another great starter text is "Whatever Happened to Penny Candy?" by Richard Maybury.

Please do not allow another generation to grow up economically illiterate, absent an understanding of the link between inflation, immorality and slavery. In order for your kids to understand it, perhaps you should get a good grasp on it as well.

Maybe it's time for some grad school courses at The Ludwig von Mises Institute. Actually, all grade levels are welcome. It's a great excuse to study with your kids. Summer school anyone?