Yields are low, unemployment up, CPI numbers are down—in short, everything screams “deflation”. Nevertheless, the next leg down in the Global Depression will be a hyperinflation. Here’s why it will happen, how it will happen, and what to do about it.

As it is now, most people do not think that they will have to pay for the spending incurred by their representatives in Congress. They think that deficits are something that does not concern them directly. They somehow assume that if the government needs more money, it can simply issue more bonds. But this way of living is unsustainable, and sooner or later, the inflow from abroad will stop. Then we will all pay for our government’s extravagance by the disintegration of the currency.

Traumatic as it may be, we should not be surprised by this. It has to end this way. This result became ineluctable the moment the American people gave government control over their money.

A group of oil companies including BP, Shell, ExxonMobil, Citgo, Chevron and others are using a front group called “America’s WETLAND Foundation” and a Louisiana women’s group called Women of the Storm to spread the message that U.S. taxpayers should pay for the damage caused by BP to Gulf Coast.

In order for the con to work, however, the Power Elites and their politico toadies in Congress, the Treasury and the Fed must convince the peasantry that low tax rates on unearned income are not just “free market capitalism at its best” but that they are also “what the country needs to get moving again.” The second part of the con is to mask much of the Power Elites’ income streams behind tax shelters and other gaming-of-the-system so the advertised rate appears high to the peasantry but the effective rate paid on total income is much much lower. Step three is to convince the peasantry that $600 in unearned income (capital gains) should be taxed in the same way as $600 million. The last step is to raise taxes on the productive peasantry to provide the revenues needed to pay the Plutocracy its interest on Treasuries.The austerity will not extend to the financial Elites, of course. That’s the whole purpose of the con. “Some are more equal than others,” indeed.

In the financial life of every culture built upon faulty monetary policy, there are points at which the thin thread of economic faith; the thread that ties the entire failing system together, the thread made tangible by the hopes (and sometimes ignorance) of the general populace, finally snaps. From Ancient Rome, to Weimar Germany, to Argentina, to modern day America, no society fueled by unsustainable debt and fiat inflation can duck the ‘Fiscal Reaper’ for very long.
Transparency, the pure and unadulterated truth, must be present in every aspect of government and finance without question for a culture to succeed. No longer can we operate in a system built upon the premise that the American people must be kept in the dark “for their own good”.

US banking giant JPMorgan Chase on Thursday announced a net profit of 4.8 billion dollars in the second quarter, up nearly 80 percent from the same period last year.
*** Hayden’s Note:
Need I really even comment on this? Sickening. Just sick. And if you’re not sure why I feel this way, research the Federal Reserve, the private banks that comprise it and who received TARP money – even who initiated the calamity that required TARP money. I also suggest you read the short, itemized summary of ‘The Con of the Decade, Part I.’

The circle is now complete: in “saving our financial system,” the public borrowed trillions and transferred the money to private Power Elites, who then buy the public debt with the money swindled out of the taxpayer. Then the taxpayers transfer more wealth every year to the Power Elites/Plutocracy in the form of interest on the Treasury debt. The Power Elites will own the debt that was taken on to bail them out of bad private bets: this is the culmination of privatized gains, socialized risk.

In effect, it’s a Third World/colonial scam on a gigantic scale: plunder the public treasury, then buy the debt which was borrowed and transferred to your pockets. You are buying the country with money you borrowed from its taxpayers. No despot could do better.

Ron Paul’s attempt to audit the Federal Reserve, which was previously co-sponsored by 320 members of the House (HR 1207), failed by a vote of 229-198. All Republicans voted in favor of the measure with 23 Democrats crossing the aisle to vote with Republicans. 114 co-sponsors of HR 1207, all Democrats, jumped ship and voted against Audit the Fed.

A Press For Truth video report about what took place on the weekend of the G20 summit in downtown Toronto. Includes some pretty shocking video of police actions.

A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value. “The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency,” the U.N. World Economic and Social Survey 2010 said.
Hayden’s Note:
The US Dollar is not a stable store of value because it is not based on any tangible item. It is a fiat currency; that is, it holds value simply by fiat – by decree or lawful order. Nixon took us completely off the gold standard, which unhinged the US Dollar from anything valuable other than the “full faith and good credit of the United States.” Do you believe that the United States could actually make good on it’s “promissory notes” in 5 years?