by John Galt

August 25, 2009

Ah the good old days. I remember growing up with communists on the college campus, communists ready to nuke us, communist spies recruiting on campus, and the constant battle between the good old U.S.A. and the U.S.S.R. From the pictures above, it seems like the communist movement is resurgent except that the only difference is the only picture from that era is the last one encouraging Soviet citizens to volunteer to work on Saturdays for the good of the party; coming here soon, I’m sure. The communist party fist in the second is still a popular symbol for the Marxist infestation in our nation and many others yet you really only see it in major cities and now out in the sticks with all of us primitive redneck types the media hates.

So why an anti-communist threat when the threat is not there? Because it is there, it is as strong as ever and the American people are gullible enough to submit to such a system if marketed properly. Don’t believe me?

In my paranoid right-wing capitalist pig opinion, their is an undercurrent of teaching that conforming to the ideas of Marx is actually a patriotic American duty and will serve all of the people far more beneficially than a system where “capitalists” and other selfish individualists create markets that support themselves and is not politically desirable for the “people” as a whole. This warning is to tell you that you are being conditioned. You are being trained like a dog. When the whistle blows you will seek out that reward in exchange for your labor; trained to understand that to be fed, treated by a doctor, allowed to drive or purchase a car or other goods, and most of all provided security and protected by the state is a benefit of working for the state and causes of the state. Thus your trades of freedom for food, submission for protection, and financial security for sharing your labor are to be indoctrinated not as a vice but as a symbol of sacrifice and the new definition of patriotic freedom. Corporations will willingly propagate this idea in exchange for a piece of the action, creating an almost Fascist style oligarchy that works within the framework of a Chinese Communist style system.

And to them you are just the cog, a tool, a part of it, like a rail tie that the trains of history run over until worn out, replaced then discarded.

This is the subtle messages being transmitted to the people via channels of advertising and government programs. Think I’m crazy? Yes, probably so.

But the “Join the Revolution” picture was from this pamphlet:

That’s right, the ad was for the “NetSpend” preloaded credit cards. The symbolism is purely communist in nature if you look at it closely. I picked the pamphlet up at a Murphy USA service station while filling up for gas. If you think the message will not be sent, stay tuned, as you will soon be told not to speak out against the leaders of the nation and the party.

Just like the Soviets did in this poster:

Comrades, I hope you are ready for this; some of us will resist this to the bitter end.

by John Galt

August 19, 2009

A question I get quite often in my email is “When will we see the Amero?” The other version, which is of more validity in my opinion, is “When will they replace the dollar?” The latter question appears to have the idea that with the massive debt we have accumulated that at some point the United States will have to worry about either a debt repudiation or imagine this (gasp) paying it off. The government has indicated that it has no intention of slowing down the rate of spending and foreign governments are very nervous about investing in the U.S. because they realize that there is no possible way we could ever pay off all of this debt in our lifetimes. This brings up the idea of a dual currency regime where “domestic” dollars (referred to now as USDD) would be used inside the United States and its territories only and “new” dollars (NUSD) would be used for debt service, international exchange and overseas business and tourism. In this brief entry, I shall attempt to offer my opinions on this practical yet dangerous solution to our ever expansive domestic debt problem without getting technical or offering esoteric theories on dual currency theorem.

Believe it or not, there have been numerous papers and discussions on this very subject but not within the use of the dollar being the bifurcated currency within the United States. The analysis has almost always been from the perspective of a foreign nation or emerging economy using the dollar and or Euro as a secondary currency in addition to a domestic issue of their own. Within this perspective of the United States attempting such a split, I deliberately chose the incorrect spelling by using the word “dualing” to indicate a dual dollar system where the American citizen bears the brunt of what would be a near final course of action by our government.

With that being established, one has to accept the word of David Walker, the former Comptroller General of the United States, where he has repeatedly warned that the United States was rapidly approaching the point of no return where revenues generated would barely be able to service the debt but never pay it down provided the spending was frozen in 2007 and no expansion of government programs would be allowed to take place. Granted, I have liberally paraphrased what he said but in summation it is now 2009 and we are continuing to expand our annual deficits under the new administration and creating new programs that are not revenue neutral but in fact forcing the issuance of record amounts of Treasuries to borrow from the domestic and foreign markets to insure that the debt is serviced the programs would continue to have ample funding, regardless of their negative economic impact.

The solutions beyond hyperinflating the currency are numerous and obvious to traditional Keynesian economists but since I am neither a disciple of Keynes nor one who approves of the current administration’s economic policies (nor Bush’s I might add), the phrase that I coined about “thinking outside of the box before you find yourself in one” applies to this paper. The monetarist theory would indicate that eventually the United States will have to begin a rapid monetization of the national debt along with a massive monetary inflation, far beyond what we have witnessed thus far, to maintain the appearance of solvency. It is my idea that the alternative solution of dual dollars could be presented where the hyperinflationary conditions are confined to the domestic markets while the international creditors are serviced with payment in full by what is perceived to be “whole” fiat dollars.

First, let us look at the exchange rates that the American people would possibly endure along with the restrictions on the monetary exchange for the international dollars or NUSD’s. The NUSD’s would be restricted to ownership only to American citizens with confirmed international business, investment or tourist plans and require a temporary or renewable license agreement to obtain and use. The Internal Revenue Service would be used to enforce this policy along with the Secret Service which would set up the prosecution regime and structure for criminal penalties. From a civil point of view a tax for exchange would also probably be added to any citizen’s request for internationalized dollars (NUSD) or a foreign currency. So imagine wishing to exchange the old currency (USDD) for NUSD then converting that into a foreign currency would probably entail a tax rate of 10-15% per every $100 old dollars exchanged. That will chill some small international business enterprises and tourism but not the multinationals nor those who are prepared for such a new currency system.

The basic domestic exchange rate would probably start out in the 2:1 to 4:1 range, fluctuating with supply and demand issues and reset as needed with each joint meeting of the Federal Reserve with the U.S. Treasury which would almost have to occur quarterly. A domestic currency board which establishes weekly resets for the exchange rate between the domestic and internationalized dollars would have to supplant and enforce the edicts of these meetings. Thus the average American citizen will experience an almost immediate 50-75% depreciation in their own holdings immediately and the inflation problem impacting the average America household overnight. Thus while the NUSD might have an internationally agreed upon exchange rate of $1.50 NUSD to 1 Euro, the domestic dollar would be closer to $3 USDD or $6 USDD to the Euro depending on the domestic exchange rate for that week, month or quarter.

The bonus to such a program is that it would force an almost immediate redevelopment of domestic industries to service the American consumer but the interim inflationary impacts while industry returns would destroy savings, retirements, and households to a point resetting our standard of living back to an early 1920’s or possibly 1890’s level. The key thing to remember is that foreign governments might be satisfied as the United States would cease exporting inflation to their nation’s economies and internalize our own foolish policies to mitigate the impact of our domestic debt loads.

Secondly, let us consider the impact of the NUSD on international trade and debt servicing. The USDD would insure that the brunt of the inflation tax was borne by the citizens that authorized and encouraged the expansion of our government to almost one third of domestic GDP and soon close to three quarters of the GDP in years to come to service the debt load. As American citizens traveled abroad, the new currency could easily be issued as a credit card type of instrument which could be used at foreign exchange offices when physical cash was required for commerce. There would never be a paper “issuance” of the new currency, only an electronic version to insure strict controls. The average U.S. citizen would return home and by law forced to exchange all foreign currency and NUSD credits at the U.S. Customs offices in airports and receive a new card back in exchange or old script for domestic purposes only (USDD) once an appropriate servicing tax is extracted during the exchange process.

The foreign holders of our debt would be satisfied with such an arrangement provided their governments along with the intentional banking community were included within the design aspects of exchange rate protocols for businesses using the NUSD along with tourist and travel exchange systems. Sadly, any new debt would have to be issued in the NUSD denominated instruments causing the American people holding old Treasury instruments to bear the brunt of the pain for exchanging grossly devalued bonds and notes in for old dollars, thus adding to the prospects for expanding domestic inflation while shielding foreign debt holders.

The NUSD would have limited issuance and be managed with the domestic Federal Reserve/Treasury boards along with a coordinated G10 group of central bankers that would bless the size and scope of the new dollars to insure their holdings are not diluted. The domestic board aspects would end up eventually creating more dollars akin to their current rates of monetary expansion to assure the public that they were being treated fairly and the currency was still viable for domestic commerce. Sadly, it will wipe out several generations of Americans financially to achieve this nirvana for the central bankers and limit the ability of our average citizens to travel freely abroad and enjoy a decent standard of living.

The problems with this dual dollar system are numerous and the political dangers are obvious. With a domestic control board for the USDD, the dollar would easily be expanded in volume for political needs based on the time of year or if elections are coming up soon. Benefits programs would continue expanding infinitely and the importation of goods and services would become prohibitively expensive for most citizens. While the rest of the world might pay $3 NUSD per gallon for gas, domestic prices would probably end up in the $12 USDD range for example. Wages would end up being managed by the same board or subsidiaries of the Department of Labor to insure that the average citizen can keep pace with the weekly decisions of a currency adjustment board. Thus you get some idea of the dangers from a domestic policy aspect since the lack of self control and discipline we have failed to display since 1971 would still continue on unabated and the taxation via inflation would proceed forward as it has since that the gold standard decoupling engineered under Nixon.

Is this the solution that the world banker’s discussed last year in their secret meetings in Paris? Who knows. I shall not go tinfoil but the explanation from my perspective to answer the question of how a dual currency might work is now laid out for the world to see. Unfortunately it does seem like a practical short term solution (by short term I mean a decade at most) which allow the American public to eventually decrease the current national debt load should borrowing be restricted via a dual dollar system. The domestic bond auctions would become coveted events until the “investors” realized that a 20% 2 year note was only equal to a 4% NUSD 2 year note and the destructive inflationary nature of a dual currency system caused what was left of our domestic capital to flee overseas, even eating the penalties involved. Regardless of that the theoretical outcome or ideas presented here, eventually the U.S. government will impose capital controls to attempt to service the domestic debt load as deflation and default are not viable alternatives due to the policies pursued since 1971. Never in history has a central bank with control over a fiat currency system ever defaulted on the national debt and thus the likelihood of some sort of inflationary outcome one way or another. I hope this answered the questions of my readers and gives one some pause as to the absurd solutions we might see in our immediate future.

by John Galt

August 17, 2009

And so am I.

You and I are nothing but fleshy fertilizer for the machine of a failing empire struggling to maintain relevance in a world where their own lies, deceit and energies are being applied against them and against their will. We witnessed the attempt to create a new order for the world in their own image but the intents of these clowns was to do nothing more than create a peace of their design using the ground bits of bones of our grandfathers, fathers, brothers and friends left on battlefields and oilfields around the world. While they beg you to subscribe to their dying cries of “save the nation”, they really want nothing more than to create a final desperate moment where their hands of evil can move away from your wallets and grasp deeper into your heart and soul.

The weaklings will beg for help and mercy and proclaim that the greatness of community is more important than God given freedoms and rights. They will tell you that you are weak, and that God has failed  you. They will cry on your television shows demanding you to subscribe to a new nationalism to replace the traditional American values with a stronger and greater calling, a new system under the flag of that new nationalism:

Internationalism.

You will be told if you do not surrender that you will be evil and cause the starvation of children. That you are a piece of crap causing grandmothers to be put out on to the street suffering from your avarice and that your selfishness will eventually kill your neighbor. That you are acting out on primitive racist ideals planted to usurp the real intent of our Founding Fathers, that of a nation unified for the cause of all people worldwide, not for just this land we once called the home of the brave and the land of the free.

You are to be stepped on, wiped off on a the curb or in the grass and discarded in a plastic baggie in a dumpster or left to fade away as a smeared memory in a summer rain into the sewer drains of history. You can accept this fate but I suggest you prepare for the absolute worst case scenario or plan to help the grass grow from the root side of life. You are no longer important to this new machine, you and your children, your parents, your relatives are nothing more than collateral for a foreign government to loan them the support to maintain an impossibly perverted hybrid system of socialism, corporatism and oligarchy. Thus the plan to strip your freedoms and rights of families and beliefs and leave you as nothing more than a modern day version of THX 1138, where you take the purple pill for when you belch, Ambien to help put you down to sleep, Viagra to help you get up for your marriage and God knows what next for that funny twinge you feel in your elbow every third week or full moon.

They want you to be a creature of their creation, a slave to the new system of mind numbed “patriotism” where individual ideas are dismissed as dangerous and the actual history of our nation is meant to be something you are supposed to be ashamed of. You piece of crap, you had best snap to and obey, this is for your retirement pay, your survival, your welfare check, your new subscription at Blockbuster for the latest Wii game.

Do as they say or do without.

As so many who do not understand, do not want, or refuse to submit to doing. They wish to be more than a cog, they would rather be irrelevant than fertilizer, desperate instead of dependent. Yet in their desperation they have opened themselves to be the most exploited class of them all, waiting for the kindness of others, the almighty benefactor of government. While nations like India attempt to withdraw from a caste system, we are degenerating into a modern day thugocratic oligarchy where caste is all that matters and creative initiative is to be stolen and exploited. Guard against the extraction of your freedoms and ideals, protect your individualism, do not surrender your ideas without the motivation of profit or an expansion of liberty as our nation’s founders envisioned.

The sacrifices you will be asked to make will not be polite requests. Your sacrifice will be for your neighbors, your church, your community you will be told. Balance the truth and do what you must but survive. This is not the time, place or reason for lone wolves, or wild speculation in meetings or where others will attempt to steer you into their traps. But get ready for the clock is running out of seconds. And America is on borrowed time. Remember what you have learned and learn what you must remember. There are no second chances.

The time is upon us now to prepare to hold the line. It is short. It is succinct. It will happen with great shock and fury. And when you awaken from this nightmare, should you be one who does, every aspect of your life will have changed until the day you die. Fear not for that day, fear for the day you are too weak to resist.

Prepare to stand, practice not to fall.

By John Galt

August 15, 2009

This is from Reuters (1st paragraph):

US commercial property values off 17 pct in H1-IPD

Fri Aug 14, 2009 2:15pm EDT

NEW YORK, Aug 14 (Reuters) – U.S. commercial real estate market values fell by more than 17 percent in the first half of the year, outstripping their decline for all of 2008, according to the Investment Property Databank (IPD).

Last year, values fell 12.2 percent, according to the report released on Friday.

U.S. commercial real estate values in the first half of 2009 fell more steeply than UK values, said IPD, which analyzes commercial real estate data in global major markets.

Basically this means the CMBS is being marked down that severely if not more so. Gang this is going to take capital ratios into the crapper so buckle up. The mega problems I and many others have been warning about are all about to hit:

1. Commercial Real Estate

2. CDS/CDO valuations and settlements

3. FASB revisions and actual valuations of real estate and loan portfolios

When this is recognized by the equity duffassmorons it will be too late. So watch the Cramericadummies and Kudzulosers pile into stocks thinking “wow, the economy is going to grow so much every illegal Haitian will get a free hybrid Escalade in Dade County” and that is when you will know the new top is in. Disaster is upon us gang, as warned, as predicted preached and warned about. Buckle up as the ride is about to get beyond last fall’s roller coaster E Ticket extravaganza.

by John Galt

July 31, 2009

If you refuse to think outside the box, you may soon find yourself buried in one.

-John Galt, July 31, 2009

In the year 2006, an excellent movie titled “Flags of Our Fathers” was released and really hit home with the remainder of the World War II generation and many families who’s parents were raised during this time period. In that movie some myths about the great success of the war effort were dispelled and the reality of just how tenous our position in the war was displayed for all to see. Sadly, now it is time to destroy another series of misnomers, the myths and illusions of our parents and the baby boomer generation which have given us the greatest period of economic growth and freedom mankind has ever seen but sadly, also has created the foundation for the next tyranny of man.

The false prophets that the Western world was warned about by a lone son many centuries ago are now in charge of almost everything. They continue to promote ideals and realities that are not true yet the majority would rather live this lie than accept the changes which sweep through civilizations every few hundred years or so throughout history. The era known as “Pax Americana” is coming to a close and our society has elected to bankrupt itself, morally, politically and economically. The acquisition of things has surpassed the creation of freedom and independence of the mind. People are more willing to divorce themselves from their wives to maintain ownership of that BMW sports utility vehicle than to realign their moral compass and preserve the family unit, the building block of our nation. The lip service paid to this issue by our leaders, on the pulpit or in the halls of political power, illustrates the fallacy of the system they wish to replace with the new enlightened era of their ideal system. Yet more people would rather blindly accept this new paradigm than fight for maintaining the integrity of their commitments, a sad statement as to the dilution of morality in our nation.

The people who have awakened and realized that you can accept that our Constitution is dead may indeed survive the coming season of change. If you have accepted the new paradigm and prepared for the worst that the character of man can create, you should be able to evade the scythe wielded by the angel of death. Glenn Beck referred vaguely to this new paradigm yesterday on his radio program but could or would not elaborate as to the impact on his life and the threats against his family. Welcome to the new order Glenn, same as the old one, but now so drunk with power no opposition has a prayer against their new kingdom at this time. I realize that there are groups who will scream “but the tea parties helped” or “write to your politicians” will be the action to conform within the system and stop this historical evolutionary process. Alas it is no better than putting a small box fan on your front porch to try to deflect the powerful winds of a F5 tornado. Accept this principle and preserve yourself and you may live to see another day.

On September 18, 2008, America’s Bohemian corporal cried wolf and openly declared the new political reality of this nation for all to see. Yet as the ashes from America’s Reichstag cooled and fell to earth, few understood that the fiat rule by crisis was no more than a shift of power from the people to the selected, not elected few. A new system which operated in the shadows where a combination of corporatism and statism emerged for all to see yet the Nancy Pelosi circus on display was nothing more than an obedient serf nodding her head like a bobble head in the back window of a 74 Impala on a pot holed road in New Orleans. The largest corporate and financial cartel in history merged is power base within the system of government it had agreed to maintain, only to assure the survival of the fractional reserve banking design which guarantees the three hundred a profit on the backs of its citizens no matter their lot in life.

The stunning efficiency of this coup can only be illustrated by what Mr. Beck said on his radio program yesterday which indicates he is still slightly behind the curve of the new elite. The error is that he believes the new administration is still building something monstrous; sadly the infrastructure was laid in place by the two predecessors to President Obama right in front of our eyes, yet we the people elected to focus more on the gossip of the day and abandon the duties of God and country. History has a cruel way of exposing these failures of man, and the illusions of our fathers, who thought our system was perfect and infallible and are about to be shattered along with the American way of life.

The indoctrination and training for this new system began while I attended college in the late 1970’s and early 1980’s yet I failed to see this evolutionary program until recently and probably contributed to its expansion as an unwilling dupe during those formative years of my life. The training began within the education system and expanded to low level government employees, the military, and participants of and overseers of selected religious institutions. The primary concept being promoted in the background was that of the destruction of nationalism, in favor of a system of expanded enlightenment or international supremacy where the idea was sold and spread that Americans could not survive without the rest of the world and vice-versa. Try preaching that to a beggar on the streets of Kolkata, India who’s limited aspirations are to eat two meals today instead of one. That soul could care less but his begging is the system forced on to our nation by those who wish to profit on misery instead of allowing true profit, that of freedom and capitalism, to rule the day. Our leaders wish only to have a nation of beggars that could be managed rather than gamble on the wisdom and desires of the free man.

The months ahead will be full of trials and tribulations. You have heard and maybe even seen the hints of what is to come. Be it the Tolerance Camp in Bradenton, diversity and bias training for Law Enforcement Officers, or training trash collectors to become amateur deputy sheriffs to spy on you , the running theme you will hear from all of those true news stories and the word from the top of our society downwards is that it is “good for society” which means the collective enforcement of new ideal is superior to the liberties given to us by God and codified within our Constitution. The 4th, 5th and 10th Amendments are somewhat irrelevant now and the willingness to usurp those individual freedoms was nothing more than the gateway to destroying the remainder. In the months to come you and I will witness what an Empire in free fall looks like and how dismantling our freedoms to insure the survival of the new Eurosocialist state will reign supreme over the individual. The “world” will be declared more important than yourself and those resources needed for this society will be rationed to each according to his ability to each according to his need.

The assignment of profit is the new motive, not the attainment of profit using capitalist methods. The winners will be selected by political not economic ability, granted from above rather than earned from below using hard work, innovation, and creation. This parallel system of reward will be applied also to the arena of morality where churches will reward souls for the ideals and works that promote the new society rather than a loyalty, love or devotion to the deity of their choice. The singular Judeo-Christian God will be abandoned as too divisive and biased against the “will of man” and “freedoms of society” thus impugning the very system of religion which inspired man to found our nation. This system of reward rather than hard work will enslave a generation and the idea mailing a tea bag or two to stop it is both laughable if not pathetic. The course of action is clear, but few will walk this path of individualism.

Prepare and pray my friends. The great awakening many perceive is nothing more than a political reaction soon to be dashed by another down turn in our economic and political system. This great reversal will seem to many as a sudden shock but it will be designed for one purpose only and it will succeed. The Agenda, a program designed to complete the transformation of our system from a democratic Republic to a corporatist-Marxist internationalist state must be completed to prevent a disorganized anarchistic dissolution of the union. The coming series of events will appear to be random but in reality it will be used to exploit the one weakness of mankind:

Desperation.

Remember, if all you have is hope, then you are already dead. Have a plan. Be prepared. Do not yield to the temptations about to be presented to you and your family. Once you surrender, the opportunities to turn back will be limited if available at all. The decisions you and your family make in the months ahead will have consequences that impact your family and our society for decades to come. Pray on each and every one of them.

July 27, 2009

2 Comments
»

1. […] Re: Close to the end of the Great Recession – Only the Shadow knows hdxpedx hit it, is freigjt moving…nope…we all here are in the one industry that shows the true picture…just so happens that on another board i frequent the following article was posted from the OP’ers website. It is too long and has a handful of charts to show what is going on in the Trucking industry…here is a little bit of it, and the link…take the time to read it and look over the charts….we are far for any recovery….: Shenandoah Smoke, Mirrors, Distortion, Hope and Change – The Earnings Pump Myth Part 1- Transportation __________________ “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around [the banks], will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” “I place economy among the first and most important republican virtues, and public debt as the greatest of the dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt.” –Thomas Jefferson Bolt Unit B441 White GMC Cargo Van OOIDA Member, #934277 […]Pingback by Close to the end of the Great Recession – Only the Shadow knows – Expedite Trucking Forums — July 27, 2009 @ 11:34 am
2. […] http://johngaltfla.com/blog2/2009/07/27/smoke-mirrors- distortion-hope-and-change-the-earnings-pump-myth-part-1-transportation It feeds into my notion the next slew of negative US economic news will kick in over the weeks ahead, which will send our stock market back down. […]Pingback by Free of State » Blog Archive » US Government Orchestrates Market Moves To Affect Massive Treasury Auctions In A Day Filled With Irony — July 28, 2009 @ 4:43 pm

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