Is Freedom a Radical Idea?

Campaign For Liberty — Is Freedom a Radical Idea? by Sheldon Richman

The answer to the question "Is freedom a radical idea" is: no and yes. Let me explain.
Starting with the "no": Most children grow up learning the libertarian, or nonaggression, ethic. Parents say: "Don't hit, don't take other kids' stuff without asking, and don't break your promises." Nothing radical -- in the sense of out of the mainstream -- there. It neatly translates into: Respect life, liberty, and property, and honor your contracts.

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The Fed is Celebrating 100 Years of Screwing Up Our Economy and Your Money

The Federal Reserve is going back to Jekyll Island to celebrate the 100-year anniversary of the infamous 1910 Jekyll Island meeting that spawned the draft legislation that would ultimately create the U.S. Federal Reserve. The title of this conference is "A Return to Jekyll Island: The Origins, History, and Future of the Federal Reserve," and it will be held on November 5th and 6th in the exact same building where the original 1910 meeting occurred. In November 1910, the original gathering at Jekyll Island included U.S. Senator Nelson W. Aldrich, Assistant Secretary of the Treasury Department A.P. Andrews and many representatives from the upper crust of the U.S. banking establishment. That meeting was held in an environment of absolute and total secrecy. 100 years later, Federal Reserve bureaucrats will return to Jekyll Island once again to "celebrate" the history and the future of the Federal Reserve.

Sadly, most Americans have no idea how the Federal Reserve came into being. Forbes magazine founder Bertie Charles Forbes was perhaps the first writer to describe the secretive nature of the original gathering on Jekyll Island in a national publication....

Picture a party of the nation's greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written... The utmost secrecy was enjoined upon all. The public must not glean a hint of what was to be done. Senator Aldrich notified each one to go quietly into a private car of which the railroad had received orders to draw up on an unfrequented platform. Off the party set. New York's ubiquitous reporters had been foiled... Nelson (Aldrich) had confided to Henry, Frank, Paul and Piatt that he was to keep them locked up at Jekyll Island, out of the rest of the world, until they had evolved and compiled a scientific currency system for the United States, the real birth of the present Federal Reserve System, the plan done on Jekyll Island in the conference with Paul, Frank and Henry... Warburg is the link that binds the Aldrich system and the present system together. He more than any one man has made the system possible as a working reality.

It was a system that was designed by the bankers and for the bankers. Now, the bureaucrats running the system are returning to Jekyll Island to congratulate themselves. Those attending the conference on November 5th and 6th include Federal Reserve Chairman Ben Bernanke, former Fed Chairman Alan Greenspan, Goldman Sachs managing director E. Gerald Corrigan and the heads of the various regional Federal Reserve banks. You can view the entire agenda of the conference right here. It looks like that there will be plenty of hors d'oeuvres to go around, but should the Federal Reserve really be celebrating their accomplishments at a time when the U.S. economy is literally falling to pieces?

Today, 63 percent of Americans do not think that they will be able to maintain their current standard of living. 1.47 million Americans have been unemployed for more than 99 weeks. We are facing a complete and total economic disaster.

Today, the Federal Reserve has more power over the economy than any other single institution in the United States. It is the Fed that primarily determines if we will see high inflation or low inflation, whether the money supply with expand or contract and whether we will have high interest rates or low interest rates. The President and the U.S. Congress have far less power to influence the economy than the Federal Reserve does.

As this election has demonstrated, the American people are absolutely furious about the state of the U.S. economy, but American voters have been mostly blaming our politicians. They just don't understand that it is actually the Federal Reserve that has the most control over the performance of the economy.

It would be hard to understate how powerful the U.S. Federal Reserve really is in 2010. U.S. Representative Ron Paul recently told MSNBC that he believes that the Federal Reserve is actually more powerful than Congress.....

"The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress."

So how has the Federal Reserve performed over the years?

Well, since 1913 inflation has been on a relentless march upwards, U.S. government debt has increased exponentially and the U.S. dollar has lost over 96 percent of its value.

That is not a record to be celebrating.

The truth is that the Federal Reserve was created to enslave the United States government in an endlessly expanding spiral of debt from which it would never be able to escape. As I wrote about yesterday, that is exactly what has happened. The U.S. government debt is escalating at an exponential rate. It is a trap from which the U.S. government will never be able to get out of under our current system.

Now many at the Federal Reserve are touting more "quantitative easing" as the solution to our economic problems. But anyone with a brain should be able to see that creating a gigantic pile of paper money out of thin air and dumping it into the economy is only going to make our long-term problems even worse.

But the Federal Reserve system was never designed to benefit the American people. It was designed to make massive amounts of money for the banking establishment. As I wrote about in "11 Reasons Why The Federal Reserve Is Bad," the Federal Reserve was created to transfer wealth from the American people to the U.S. government and from the U.S. government to the super wealthy.

The sad truth is that the Federal Reserve is at the very core of our economic and financial problems, and that is nothing to celebrate.

Commodities on the rise

World oil prices hit fresh six-month peaks on Thursday as the dollar slumped on the back of the US Federal Reserve's new huge stimulus package aimed at boosting the American economy.
Brent North Sea crude for delivery in December delivery rallied as high as 87.59 dollars, reaching a level last seen on May 4. It later stood at 87.46, up 1.08 dollars from Wednesday's close.
New York's main contract, light sweet crude for December, surged to a similar high point at 86.05 dollars, before pulling back to 85.88, up 1.19 dollars.
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The dollar tumbled on Thursday after the Fed announced that it would launch a new asset-buying plan, or quantitative easing (QE), worth 600 billion dollars, to bolster the nation's sluggish economic recovery.
In reaction, the European single currency soared to 1.4264 dollars, reaching the highest level since January 20, as traders fretted that the Fed policy could water down the value of the US unit.
"The Fed announced yesterday evening that it would be buying up more US treasuries. The much weaker US dollar as a result is now giving impetus to commodity prices," said Commerzbank analyst Carsten Fritsch.
A weak greenback makes dollar-priced crude cheaper for buyings using stronger currencies. In turn, that tends to stimulate oil demand and prices.
Crude futures had already surged in New York on Wednesday after the Fed unveiled the plans that have been dubbed QE2 by traders.
"The additional liquidity could also flow into commodity markets and lead to excessive oil prices on a more permanent basis," Fritsch added.
The US government's Department of Energy meanwhile published a weekly snapshot of crude oil inventories, detailing its stockpiles for the week ending October 29.
The DoE said on Wednesday that US crude stockpiles rose by two million barrels to 368.2 million last week. Analysts had forecast a smaller gain of 800,000 barrels.
"The lower implied demand for oil does suggest ... that the fundamental situation on the oil market is still weak," added Fritsch.
"But this is only likely to dampen the rise in prices at the moment and not halt it entirely."

There should be a test to vote.

So for the next two years, the voting public is going back to Dancing with The Stars and GLEE.
Wow, glad you got out and did your part. How many of you even knew who or what you were voting for?

Fed to Spend $600 Billion More To Help Boost US Economy - CNBC

Fed to Spend $600 Billion More To Help Boost US Economy - CNBC

Debt Monetization. This will only be good for the FED. The rest of us are screwed.

The Calm Before The Storm

An eerie calm has descended upon world financial markets as they await perhaps the two most important financial events of the year this week. On Tuesday, investors will be eagerly awaiting the results of one of the most anticipated midterm elections in U.S. history. On Wednesday, the Federal Reserve is expected to end months of speculation by formally announcing the details of a new round of quantitative easing. If either the election or the meeting of the Federal Reserve open market committee delivers a highly unexpected result, it could have a dramatic impact on world financial markets. In fact, many are looking at this week as a potential turning point for the U.S. economy. The decisions that are made or not made this week could set us down a road from which the U.S. economy may never recover.
At this point, it looks like the Republicans will take control of the U.S. House of Representatives and will pick up a number of U.S. Senate seats as well.
There are many in the financial world who already consider Barack Obama to be the most "anti-business" president in U.S. history, so a defeat for the Democrats on Tuesday would be greatly welcomed by many on Wall Street. Barack Obama's decline in popularity since he was elected has been absolutely stunning. According to Gallup, Barack Obama had an average approval rating of just 44.7% during the seventh quarter of his presidency, which was a brand new low. In fact, Obama's average approval rating has fallen during every single quarter since he took office. Things have gotten so bad for Obama that one new poll has found that 47% of Democrats now think that Barack Obama should be challenged for the 2012 Democratic presidential nomination.
However, if the Democrats were able to do surprisingly well on Tuesday, it would not only shock the political pundits, but it would also likely put world financial markets in a very bad mood.
If the Republicans do very well on Tuesday, it will likely mean that there will be no more extensions for those receiving long-term unemployment benefits. Some state governments are already anticipating this and are making preparations. For example, armed security guards are now being posted at all 36 full-service unemployment offices in the state of Indiana. It is estimated that approximately 2 million Americans will lose their unemployment insurance benefits during this upcoming holiday season if Congress does not authorize another emergency extension of benefits by the end of November. If the Republicans do very well on Tuesday, it would make it much more likely that the extension will not happen.
But if millions of unemployed Americans suddenly find themselves without any unemployment checks, that is only going to cause the anger and frustration regarding this economy to grow.
Either way, the unfortunate truth is that this election is not going to change much.
Over the past five elections, incumbents have been re-elected to the U.S. House of Representatives at an average rate of 96 percent.
This time will be a little different of course, but not that much different. The sad truth is that we are still likely to see about 80 percent of the exact same faces going back to the U.S. Congress for the next session.
However, even if the American people could somehow vote out every single member of Congress, it would still not do much to fundamentally change our economic situation because the U.S. Congress does not run the economy and neither does the President.
Of course both of those institutions can influence the U.S. economy, but it is actually the Federal Reserve that runs the economy.
The Federal Reserve controls the money supply. The Federal Reserve controls our interest rates. If the U.S. government wants more money it has to go get it from the Federal Reserve. It is the Federal Reserve that is tasked with the mandate of keeping unemployment low while also keeping inflation at a "reasonable" level.
But these days, Federal Reserve officials don't really seem to be that concerned about the dangers of inflation. In fact, several top Federal Reserve officials have come out in recent weeks and have made public statements not only advocating more quantitative easing, but also suggesting that inflation is not a danger because it is actually "too low" right now.
In fact, there have been some rumblings that many officials at the Fed would actually welcome more inflation because they think that it would somehow stimulate the economy. In fact, a Federal Reserve paper that was released in September actually floated the idea that a spike in oil prices would be quite good for the U.S. economy.
And these are the people running our economy?
Are we all caught in an episode of The Twilight Zone?
Well, as far as rising oil prices are concerned, the Fed will almost surely get its wish. As I have written about previously, the price of oil is almost certainly heading to 100 dollars a barrel.
But if the price of oil shoots up, isn't that going to cause significant inflationary pressure on the prices of thousands of other goods and services?
Of course.
Unfortunately, very few of our leaders seem too concerned about inflation or about protecting the value of the U.S. dollar these days.
In fact, now even the IMF is publicly proclaiming that the U.S. dollar is "overvalued."
What a mess.
But there is another aspect of a new round of "quantitative easing" that the American people really wouldn't like if they could actually figure out what is going on.
You see, the truth is that "quantitative easing" is not only just a way to stimulate the economy, it is also a way to give backdoor bailouts to the big banks without having to go through the U.S. Congress.
In a previous article, I described how this works....
1) The big U.S. banks have massive quantities of junk mortgage-backed securities that are worth little to nothing that they desperately want to get rid of.
2) They convince the Federal Reserve (which the big banks are part-owners of) to buy up these "toxic assets" at significantly above market price.
3) The Federal Reserve creates massive amounts of money out of thin air to buy up all of these troubled assets. The public is told that all of this "quantitative easing" is necessary to stimulate the U.S. economy.
4) The big banks are re-capitalized and have gotten massive amounts of bad mortgage securities off their hands, the Federal Reserve has found a way to pump hundreds of billions (if not trillions) of dollars into the economy, and most of the American people are none the wiser.
Now how do you think the American people would feel about "quantitative easing" if they really understood all this?
But unfortunately, most Americans will be watching the election results on Tuesday night without having even a basic understanding of how our economy is really run.
Already, there are a ton of signs that the U.S. economy is heading in a very bad direction, and dumping a handful of Congress critters out of office might feel good, but it isn't going to do much to really change our economic problems.
The American people desperately need to be educated about how our financial system really works. But unfortunately, most Americans will likely not wake up until the whole house of cards comes crashing down.
Reprinted with permission from the Economic Collapse Blog.
Copyright © 2010 Economic Collapse Blog

It's not the vote that counts

How High Can Silver Go?

Legendary commodity investor and hedge fund manager Jim Rogers recently pointed out that silver prices are 50% below all time highs.
He’s talking about the brief momentary highs of nearly $50 an ounce back in 1980. With silver currently selling for less than $24 an ounce, Mr. Rogers is technically correct. But priced in 2010 dollars, the inflation adjusted high for silver would be closer to $124.
So if you believe that silver prices will make new inflation adjusted highs, then you’re expecting to see a five-fold increase in the price of silver.
Silver has already trounced just about every other asset so far this year - it’s up 40% since January 1st.

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US to spend $200 mn a day on Obama's Mumbai visit

US to spend $200 mn a day on Obama's Mumbai visit

Nothing but the best for Zeroman. I cannot fathom the arrogance required in this economy to spend $200 Million Dollars per day on what will essentially turn into a vacation for the President and his family in India.
High Crimes and Misdemeanors. These are all that is required for bringing impeachment proceedings to the Senate.

Fed Set To Destroy 20% Of Dollar Value

The dollar is in danger of losing 20 percent of its value over the next few years if the Federal Reserve continues unconventional monetary easing, Bill Gross, the manager of the world's largest mutual fund, said on Monday.
"I think a 20 percent decline in the dollar is possible," Gross said, adding the pace of the currency's decline was also an important consideration for investors.
"When a central bank prints trillions of dollars of checks, which is not necessarily what (a second round of quantitative easing) will do in terms of the amount, but if it gets into that territory—that is a debasement of the dollar in terms of the supply of dollars on a global basis," Gross told Reuters in an interview at his PIMCO headquarters.
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For the First Time, the TSA Meets Resistance

This past Wednesday, I showed up at Baltimore-Washington International for a flight to Providence, R.I. I had a choice of two TSA screening checkpoints. I picked mine based on the number of people waiting in line, not because I am impatient, but because the coiled, closely packed lines at TSA screening sites are the most dangerous places in airports, completely unprotected from a terrorist attack -- a terrorist attack that would serve the same purpose (shutting down air travel) as an attack on board an aircraft.

Agents were funneling every passenger at this particular checkpoint through a newly installed back-scatter body imaging device, which allows the agency's security officers to, in essence, see under your clothing. The machine captures an image of your naked self, including your genitals, and sends the image to an agent in a separate room. I don't object to stringent security (as you will soon see), but I do object to meaningless security theater (Bruce Schneier's phrase), and I believe that we would be better off if the TSA focused its attentions on learning the identity and background of each passenger, rather than on checking whether passengers are carrying contraband (as I suggested in this article, it is possible for a moderately clever person to move contraband through TSA screenings with a fair amount of ease, even with this new technology).

In part because of the back-scatter imager's invasiveness (a TSA employee in Miami was arrested recently after he physically assaulted a colleague who had mocked his modestly sized penis, which was fully apparent in a captured back-scatter image), the TSA is allowing passengers to opt-out of the back-scatter and choose instead a pat-down. I've complained about TSA pat-downs in the past, because they, too, were more security theater than anything else. They are, as I would learn, becoming more serious, as well.

At BWI, I told the officer who directed me to the back-scatter that I preferred a pat-down. I did this in order to see how effective the manual search would be. When I made this request, a number of TSA officers, to my surprise, began laughing. I asked why. One of them -- the one who would eventually conduct my pat-down -- said that the rules were changing shortly, and that I would soon understand why the back-scatter was preferable to the manual search. I asked him if the new guidelines included a cavity search. "No way. You think Congress would allow that?"

I answered, "If you're a terrorist, you're going to hide your weapons in your anus or your vagina." He blushed when I said "vagina."

"Yes, but starting tomorrow, we're going to start searching your crotchal area" -- this is the word he used, "crotchal" -- and you're not going to like it."

"What am I not going to like?" I asked.

"We have to search up your thighs and between your legs until we meet resistance," he explained.

"Resistance?" I asked.

"Your testicles," he explained.

'That's funny," I said, "because 'The Resistance' is the actual name I've given to my testicles."

He answered, "Like 'The Situation,' that guy from 'Jersey Shore?'"

Yes, exactly, I said. (I used to call my testicles "The Insurgency," but those assholes in Iraq ruined the term.)

I pointed out to the security officer that 50 percent of the American population has no balls (90 percent in Washington, D.C., where I live), so what is going to happen when the pat-down officer meets no resistance in the crotchal area of women? "If there's no resistance, then there's nothing there."

"But what about people who hide weapons in their cavities? I asked. I actually said "vagina" again, just to see him blush. "We're just not going there," he reiterated.

I asked him if he was looking forward to conducting the full-on pat-downs. "Nobody's going to do it," he said, "once they find out that we're going to do."

In other words, people, when faced with a choice, will inevitably choose the Dick-Measuring Device over molestation? "That's what we're hoping for. We're trying to get everyone into the machine." He called over a colleague. "Tell him what you call the back-scatter," he said. "The Dick-Measuring Device," I said. "That's the truth," the other officer responded.

The pat-down at BWI was fairly vigorous, by the usual tame standards of the TSA, but it was nothing like the one I received the next day at T.F. Green in Providence. Apparently, I was the very first passenger to ask to opt-out of back-scatter imaging. Several TSA officers heard me choose the pat-down, and they reacted in a way meant to make the ordinary passenger feel very badly about his decision. One officer said to a colleague who was obviously going to be assigned to me, "Get new gloves, man, you're going to need them where you're going."

The agent snapped on his blue gloves, and patiently explained exactly where he was going to touch me. I felt like a sophomore at Oberlin.

"I'm going to run my hands up your thighs, and then feel your buttocks, then I'm going to reach under you until I meet --"

"Resistance?" I interrupted.

"Yes, resistance. Do you want to go into a private room?" he asked.

"Are you asking me into a private room?" I said. He looked confused. I said, "No, here is fine."

He felt me up good, but not great. It was not in any way the best pat-down I've ever received. The most thorough search I've ever experienced was in the Bekaa Valley, by Hezbollah security officers. That took quite awhile, and the Resistance really manhandled my Resistance. There was no cavity search, of course -- no magazine story, even one about Hezbollah terrorism -- is worth that. But it was the fairly full Monty.

I draw three lessons from this week's experience: The pat-down, while more effective than previous pat-downs, will not stop dedicated and clever terrorists from smuggling on board small weapons or explosives. When I served as a military policeman in an Israeli army prison, many of the prisoners "bangled" contraband up their asses. I know this not because I checked, but because eventually they told me this when I asked.

The second lesson is that the effectiveness of pat-downs does not matter very much, because the obvious goal of the TSA is to make the pat-down embarrassing enough for the average passenger that the vast majority of people will choose high-tech humiliation over the low-tech ball check.

The third lesson remains constant: By the time terrorist plotters make it to the airport, it is, generally speaking, too late to stop them. Plots must be broken up long before the plotters reach the target. If they are smart enough to make it to the airport without arrest, it is almost axiomatically true that they will be smart enough to figure out a way to bring weapons aboard a plane.

UPDATE: Many people are asking me if I actually named my testicles "The Resistance." Of course not. I was just messing with the guy from TSA. My testicles are actually named "Tzipi" and "Bibi."

UPDATE 2: The sequel to "the Resistance"

2010:Jeffrey Goldberg - Jeffrey Goldberg is a national correspondent for The Atlantic. Author of the book Prisoners: A Story of Friendship and Terror, he has reported from the Middle East and Africa. He also writes the magazine's advice column.

Indiana Hires Armed Guards As The Gov't Teet Dries Up At The Unemployment Offices

Armed security guards will be on hand at 36 unemployment offices around Indiana in what state officials said is a step to improve safety and make branch security more consistent.
No specific incidents prompted the action, Department of Workforce Development spokesman Marc Lotter told 6News' Norman Cox.
Lotter said the agency is merely being cautious with the approach of an early-December deadline when thousands of Indiana residents could see their unemployment benefits end after exhausting the maximum 99 weeks provided through multiple federal extension periods.
"Given the upcoming expiration of the federal extensions and the increased stress on some of the unemployed, we thought added security would provide an extra level of protection for our employees and clients," he said.
Some offices have had guards for nearly two years but those guards were hired on a regional basis, meaning some offices had armed guards while others did not, Lotter said.
The cost of the armed guards varies dramatically around the state. Lotter said the agency is trying to be more consistent and that it plans to employ armed guards in all 36 offices where unemployment insurance benefits are handled.
The overall cost for the security is $1 million, paid for with federal funds designated for administration of the unemployment system, Lotter said.
Other agency offices that provide job training or are not full-service branches will continue to have unarmed guards.
Lotter said state employees in the affected offices have also recently gone through stress-management training in which they learn how to respond appropriately to angry clients.
"This is a stressful time for people in the economy," he said. "That's why we're not only taking this step (of hiring guards), but we're also increasing our training for our staff to be able to help people as they're trying to cope with these changes."

This is only the beginning. When the 99 weeks worth of Unemployment runs out, there will be rioting in the streets. Government handed out money is like crack cocaine. The government got them hooked on it and now with no jobs to be had they are going to cut them off. They never should have provided the money in the first place, that way people would have been motivated to go out and create some work for themselves.