Government Trend– Toward Fascism Part 2
Yesterday we looked at how the government’s separation of Gold from money has allowed it to grow out of control contrary to the intentions of our founding fathers. Had the money remained chained to gold the government’s ability to wage war, offer unlimited social programs and grab power would have been severly curtailed. So of course they threw off those chains and have been expanding their reach ever since. This is how David Galand put it yesterday…
Put another way, in cahoots with the Fed, the federal government is able to wage war, bail out the banks, foster socialism, and otherwise bankrupt the nation – to do whatever it wants – largely thanks to its continued operation of an unconstitutional monetary system.
Police State Amerika- Part 2
It Gets Worse…
The second fundamental truth is that the Supreme Court has been a co-conspirator and instrument of the government’s degradation of individual liberty. Continue reading
Government Trend- Toward Fascism Part 1
What is Fascism?
We’ve often heard the word but what exactly is fascism? Historians, political scientists and other scholars have spent long hours trying to define the exact nature of fascism. Since each occurance of fascism is distinct, it is difficult to define. The three common threads of fascism are Nationalism, Authoritarian with a strongly regulated economic structure. Politically fascism is hard to define although it is often defined as the far “Right” in some ways the political spectrum is more of a circle than a line and if you go far enough “Right” you will circle around and end up on the far “left”. Mussolini described his fascist government as a “third force” neither Left or Right. Fascists are definately anti-communist although in application they share many qualities with Communism. A fascist State is a “Police State” and in today’s article David Galland shares the views of consitutional lawyer, Dr. Edwin Vieira.
Police State Amerika
By David Galland, Casey Research
I just had a conversation with constitutional lawyer and monetary expert Dr. Edwin Vieira. I first became acquainted with Dr. Vieira, who holds four degrees from Harvard and has extensive experience arguing cases before the Supreme Court, at our recent Casey Research Summit in Boca Raton, where he spoke on how far off the constitutional rails the nation has traveled. Here is a summary of what he told me… Continue reading
Government Trend- Out of Control
By Tim McMahon, Editor
It’s not just the government’s finances that are out of control it is the government itself. Just this week several examples of an out of control government have crossed my desk.
1) The first is a law passed by the Indiana state legislature which makes it against the law to resist the entry of police officers even if their entry is unlawful. In other words they can enter your house without a warrant and you can’t resist. Theoretically if they do enter illegally, you can take them to court but what is to stop someone from dressing up like a police officer in Indiana and just walking into your house, since you can no longer resist?
What ever happened to the Fourth Amendment to the United States Constitution, which guarantees Continue reading
Major Disaster Developing For Bond Holders
Long-term U.S. Treasury bonds have fallen 7% in value since November 1 and municipal bonds have fallen 6%. “Safe” investments like Treasury’s and Munis are not supposed to crash they are the mainstay of widows and orphans. So What’s happening?
For most of the last century, the whole world has believed the obligations of the U.S. government – and the obligations of thousands of states, cities, towns, and other municipalities in the U.S. – were the safest investments in the world. These “safe” investments aren’t supposed to crash. The following article by Elliottwave Internations shows why Bonds are no longer safe. Tim McMahon~ editor
Why Bonds Do Not Provide Shelter From The Storm
December 23, 2010
By Elliott Wave International
TREASURIES — the very name conveys a thing that is secure, protected, and will appreciate over time. Otherwise, it’d be called something like “TRASHeries” or “Mattress Stuffers.” Then, there’s the official seal of the US Department of Treasury: its image of a scale and a key symbolize “balance” and “trust.”
And, finally, there’s the mainstream economic experts who have it on good authority that long-term bonds increase in value during financial instability and uncertainty.
On this, the following news items from November-December 2010 reflect the enduring faith in fixed-income assets as the ultimate safe-havens:
- “Bonds Tumble On Signs of Economic Recovery” (Reuters)
- “US Treasury Prices Rise as traders positioned for negative headlines….” (Associated Press)
- “Treasury’s rise as investors sought shelter in safe haven assets amid rising fears about sovereign debt woes in the eurozone. The slow motion train wreck is likely to play out over year end as each country plays musical chairs with solvency. The market’s concern here is ‘What is next?’ The 10-year Treasury yield will fall if the problems get worse from here.” (Wall Street Journal)
There’s just one problem with this notion: namely, bonds (of any denomination) do NOT have a built-in disaster premium. This is the myth-busting revelation of the latest, free report from Elliott Wave International. The resource titled “The Next Major Disaster Developing For Bond Holders” includes a thoughtful selection of various EWI publications that expose the very real vulnerability of bond markets to economic downturns.
The premier study on the subject comes from Chapter 15 of EWI President Robert Prechter’s book Conquer The Crash by way of this memorable excerpt:
“If there is one bit of conventional wisdom that we hear repeatedly with respect to investing, it is that long-term bonds are the best possible investment [in downturns]. This assertion is wrong. Any bond issued by a borrower who can’t pay goes to zero in a depression. Understand that in a [major contraction], no one knows its depth and almost everyone becomes afraid. That makes investors sell bonds of any issuers that they fear could default. Even when people trust the bonds they own, they are sometimes forced to sell them to raise cash to live on. For this reason, even the safest bonds can go down, at least temporarily, as AAA bonds did in 1931 and 1932.
The first chart (see below) shows what happened to bonds of various grades in the deflationary crash. And the second chart (see below) shows what happened to the Dow Jones 40-bond average, which lost 30% of its value in four years. Observe that the collapse of the early 1930s brought these bonds’ prices below — and their interest rates above — where they were in 1920 near the peak in the intense inflation of the ‘Teens.”
That’s just the tip of the iceberg in this myth-busting report.
“The Next Major Disaster” uncovers flaws in other widely-accepted bond lore as well.
Get your free Copy of the full 10-page report Here.
This article was syndicated by Elliott Wave International and was originally published under the headline Long-Term Bonds: The Best Possible Investment? Think Again. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
The Fed and “Plunge Protection Team”: Are They Manipulating Stocks?
Rumors are, the U.S. government “is propping up the stock market.”
By far, the most frequent question we’ve been asked recently is:
“What is your take on the persistent internet chatter that the Federal Reserve is holding up the stock market via QE2, POMO, etc.? How can stocks ever decline again if the Fed is in control?”
Here is an eye-opening chart that will help shed more light on this issue.
EWI President Robert Prechter published this chart in his October 2008 Elliott Wave Theorist. Review this chart carefully. For too many investors, the crash of 2007-2009 is becoming a hazy memory. And almost no one in the mainstream financial media talks about the utter panic in the markets in September-October 2008, the worst part of the crash.
If you think back to that time, you may remember that the Federal Reserve and U.S. government took many aggressive steps to help stop the collapse. Every time they would announce a new intervention, the market would cheer. Result? Prechter’s chart gives an unequivocal answer:
All Golden Eggs in One Basket
Dear Editor,
I am a college student and amateur trader. I have a friend of a
friend who I have the unfortunate acquaintance with every now an then,
and when so I get to hear his loud obnoxiousness. He is a strong
believer in the “fraud” of Keynesian Economics and thinks I am
“foolish” to invest in stocks. He has recently inherited a fair sum of
money and has invested it solely in Silver and Gold. Continue reading
Stocks and Commodities Stronger than Bonds
The Long-Term Case for Stocks and Commodities
By Chris Ciovacco
In their understandably concerned state of mind in the present day, investors may have lost sight of the longer-term drivers of asset prices. Bonds, especially U.S. Treasuries, have merit presently as high levels of debt have sparked concerns about deflation. However, in the long-run, the case for stocks, commodities, commodity-related currencies, and precious metals looks quite a bit stronger than the case for bonds.
In the current 24-hour news cycle, we have three separate stories that are significantly intertwined and related to this topic:
- According to the Washington Post, the Obama administration opened its conference on the future of housing policy yesterday with Treasury Secretary Tim Geithner promising both an overhaul of Fannie and Freddie and a continued federal role in backstopping mortgages
- James Bullard of the St Louis Fed told The Wall Street Journal the Federal Reserve might need to commence a program of moderate purchases of U.S. Treasury bonds if inflation continues to fall.
- In the Great American Bond Bubble (WSJ), Jeremy Siegel and Jeremy Schwartz, compare the current state of the U.S. Treasury market to the tech bubble of the late 1990s.
The long-term outlook for U.S. Treasury bonds is questionable at best, yet investors continue to Continue reading
The Advantages of Global Diversification
Almost every day we hear of more ways the government is trying to control our lives and get into our wallet in order to pay for it. Like sand through an hourglass our freedom is slowly slipping away. Everything requires more reporting, more government oversight and more of our money to do it. Only you can protect yourself but it takes knowledge, and effort in order to do it. In this article Terry Coxon reviews the plusses and minuses of your overseas options. ~editor
Expatriate Your Wallet
By Terry Coxon, contributing author of Casey Research’s ‘Going Global’ Special Report
If everything you own is held in your own name in your own country, then you are not merely exposed, you are vulnerable absolutely, to whatever decisions the government might make about how you should behave and who gets the wealth you’ve earned. Tomorrow’s new government measure, which might land out of the blue, could be a law that affects everyone, or it could be a rule devised to deal with people like you. Or, it could be an administrative action aimed at you alone. In any case, with all your assets at home, you’d find out how the lobster feels when his trap is being hauled out of the water. Nothing he can do about it.
The only way to protect yourself against the risk of being boiled in a government pot is to keep some of your assets in another country. Continue reading
A Central Bank’s Toolkit to fight a Depression
By Ted Peroulakis
This investment news is brought to you by Investor’s Daily Edge a free daily investment newsletter that is delivered by email before the market opens. It’s published by Fourth Avenue Financial, a subsidiary of Early To Rise (an affiliate company of Agora Publishing). In each weekday issue you’ll receive practical strategies for protecting your portfolio and multiplying your money. You’ll also learn about undiscovered opportunities in emerging sectors and markets, deeply discounted stocks, recommendations for bonds, cash, commodity and real estate investing, and top ETFs. To view archives or subscribe, visit Investor’s Daily Edge.
I know as you read this, you are aware that America and the world are currently experiencing an economic crisis.
Many economic experts say we could be heading towards a worsening recession or even a depression.
In this article, I have listed a few tools that a government has at its disposal to pull itself out of a recession and even avoid a depression.
It’s good to be aware of the intervention tools governments use to prop up an economy in order to better protect your wealth and purchasing power. Continue reading
Banks are Still Not Healthy
Are Banks Going Bankrupt? “NO!”, say banks
By Olivier Garret, CEO, Casey Research
On April 21, Treasury Secretary Timothy Geithner said the “vast majority” of U.S. banks have more capital than needed.
“Currently, the vast majority of banks have more capital than they need to be considered well capitalized by their regulators,” Geithner said in testimony to a congressional oversight panel on the government’s financial rescue program.
Geithner’s remarks come on the heels of a surge in reported quarterly profits by the big banks.
One of these banks, Bank of America (BAC), the world’s second largest in terms of market capitalization, booked a first-quarter net income of $4.247 billion – 6% more than it made in all of 2008. Continue reading
