All the PsychoNews that's fit to print TM

PsychoNews last updated, 8th January 2011 | Tags: Purpose Hyperinflation, Banking, Oligarchy, Foreclosuregate, Military Industrial Complex, Currency Wars, Psychos, Too Big To Fail,  Big Pharma, Wall St Bailouts, Media, Regulatory Capture

LATEST!  Scroll down to red our latest PsychoNews story: "Signs of the Apocalypse"
NEW!  Read our recent PsychoNews story: "PsyOps, Disinformation & Bold Faced Liars"

Why was this site founded: Because it needed to be.  Because there is a lot of  craziness in the world that people struggle to make sense of. The decisions  made in the worlds of politics and finance impact everyone, and therefore citizens need to be aware of the issues.  If you are unaware of the issue you are powerless to address and resolve the issue.   Please see PsychoNews' Issues page!

The problems America (as well as most of the developed world) faces cannot be solved by Democrats, or Republicans, or in other words, by voting in "the other guys".  These problems must be solved according to the will of the (hopefully informed) people.

    In the words of Ben Franklin:  "In free governments, the rulers are the servants and the people their superiors and sovereigns."  This situation has become completely reversed, and few would argue that America has now become an oligarchy (rule by the few) in all but name. America is not alone in this, just a fitting example.

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Nominate-A-Psycho: What's it all about?

Last updated on PsychoNews , 5th November 2010 | Tags: Corruption,Political favors, Oligarchy, Psychopathic Tendencies, Federal Reserve, Central banks, Currency destruction

NEWER! Continue to read our latest feature, Nominate-A-Psycho: Feature #5 Dick Cheney
NEW!!!  Continue to read our feature, Nominate-A-Psycho: Feature #4 Ben Bernanke

This site is founded on the idea that a psycho hates nothing more than to  be exposed.  That is, in fact, one of the only ways to resist a psycho.  What is a Psycho?  Well, for the purpose of this site the medical definition of psychopath is not  as important as recognizing high-profile individuals (w/ a particular focus on the mega-wealthy and politicians) who exhibit psychopathic tendencies:

  • Lack of Remorse, as well as Empathy
  • Cunning/Manipulative
  • Pathological Lying
  • Failure to accept responsibility for own actions
  • Not afraid of consequences
  • Taking great pride in getting away with crimes

Bernie Madoff, as well as Ken Lay from Enron infamy, come to mind immediately.  Psychos get away with what they do because of their charm and willingness to say exactly what you want to hear.  They also prosper because ordinary people (99% of the population) cannot imagine someone who can lie or harm others without remorse!  If you know a central banker, billionaire or politician who exhibits these tendencies please do future generations a favor and Nominate-A-Psycho.

Why Now?

The primary reason it has become of increasing importance to pinpoint psychos is because of the pervasive corruption and political favors that dominate our economic system.  The economy is dominated by large multinational corporations with no loyalty to any nation, and in many cases, these large corporations do not pay any tax!

Study says most corporations pay no U.S. income taxes

But of course, the corporations themselves are run by people.  The people who run these multinationals wish to hide behind the corporations in order to disguise their motives and avoid legal liability.  As discussed in our article on the Oligarchy the main goal for those in control is simply to increase or retain control!

One corporation in particular is at the heart of the corruption in the economy, and that corporation is, the Federal Reserve!

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Today's PsychoNews

Posted on PsychoNews , 8th January 2011 | Tags: Currency Wars, Race to the Bottom, Devaluation, Dollar Crash, By the Bankers For the Bankers, Bailouts, Quantitative Easing, Money Printing, Destruction of the Dollar, Jubilee, Hyperinflation, Oligarchy, World Reserve Currency, Gold Standard, Sound Money, Foreclosuregate, Mass Animal Deaths, HAARP, Energy Weapons, Food Riots
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Signs of the Apocalypse

Bodies in Landfills

PsychoNews is back again following a much needed break, and as usual there is no shortage of assorted weirdness to discuss.  At the top of the list, mass animal deaths have been reported in atleast 30 seperate incidents, taking place across 10 countries.  Dead birds, dead fish,  dead former military consultants...

While it is abundantly clear that all of the animal deaths could not have been caused by fireworks, the mainstream media has been slow to suggest alternative theories.  Luckily PsychoNews has no qualms  about filling the void!  Lets be serious, these animal deaths are likely linked to the testing of military technology.  The real question is whether chemical/biological weapons are being tested, or something more exotic, such as energy weapons. 

What is also  interesting is that China has recently announced they have been working on the J20, a prototype of a stealth fighter.  While publicly America's most advanced aircraft is the F22, it seems unlikely that it is the most advanced weapons system actually available.  The American Military-Industrial Complex could well be sending a message to China, "You may have a stealth fighter in development, but we have weapons the world has never even heard about".  Weapons that could drop planes out of the sky, kill livestock, alter weather, and can even be used for mind control!  If the reader is unfamiliar with HAARP, perhaps now would be the time to do some research. 

Link to video: Intro to HAARP
Link to forum showcasing multiple HAARP videos
Link to article:  Total Control of the Population

Another story glossed over in the mainstream media this week was the murder of John Wheeler III.  Wheeler was a Pentagon aide to THREE Presidents (Reagan, Bush I & II), and was found dead when his body was dumped out of a garbage truck into a landfill in Newark on December 31st.  This is a man who was trained not only as a solider (who graduated West Point but did not deploy to Vietnam), but also as a lawyer, working for the SEC in insider trading cases.  He was a member of the Council on Foreign Relations (see Bush Sr. Kissinger, Greenspan, in the Psycho Archives) and was working for MITRE Corporation at the time of his death.

MITRE Corporation does contract work for Department of Homeland Security.  An interesting anecdote, MITRE registered the first .org domain IN HISTORY.  Clearly this is a company at the heart of the Military Industrial Complex, and clearly Wheeler was a well-connected individual.   Which strongly suggests his death was politically motivated.   The questions of what he knew, and whether he was about to spill the beans, remain.

In economic news, America's unemployment rate was reported to have dropped this week to 9.4%.  Well, considering people that stop looking for work don't count as unemployed, no wonder the number is dropping!  People who are underemployed (working part-time or unable to find work in their preferred occupation) also count as fully employed, in the government statistics.  The holiday season is a busy time for retailers, so a temporary increase usually occurs.  What goes unsaid?  Well, the American Dollar is currently worth less than the Canadian Dollar!   Those trips up to Montreal aren't as cheap as they used to be!

Its not that PsychoNews is opposed to looking at the bright side of the economy, its that certain issues must be addressed for real recovery to take place, companies have to be allowed to go bankrupt again (no more Too Big to Fail), mark-to-market accounting has to be brought back (for EVERYONE), US debt has to be defaulted on, manufacturing brought back to North America, (private) central banking outlawed...  Until those things happen every uptick in GDP or fantasy unemployment statistics is meaningless.  The issues of shadow housing inventory (held off the market by banks), unfunded liabilties, government deficits, currency debasement and structural unemployment continue to lurk.

On a final reading of the world's pulse at the moment, pay heed to the following stories:
Food riots continue in Algeria : Watch for riots across the world, as currency devaluation continues to cause sharp increases in food and energy prices.
Congresswoman shot in Arizona:  This resembles a Manchurian candidate-type shooting.  Watch for the news to portray him as crazy (mind control will do that to you!), and for security surrounding politicians to be ramped up big time.  Constituent meetings will likely become extremely rare!

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Psy-Ops, Disinformation & Bold Faced Liars


In this crazy world of ours there is not much you can be sure of.  What is perception, and what is reality?  Take the economy, for example.  What is the goal of the economy?  Briefly, the goals in theory are: full employment; price stability; economic freedom; and equitable distribution of wealth and income.  Ideally everyone who seeks employment will be able to find it in some form. 

People will produce income in whatever (legal) manner they desire, and consume goods of their choosing.  Houses, land, food, clothing.  This supply and demand for goods will in turn create an 'equilibrium point' or price.  In theory this price will only change if either the supply or demand changes.  What does this have to do with perception or reality, you might well be asking.   We have just briefly examined the perception of the economy.  The reality is, we have central bankers in charge of national economies, and their actual goals are not congruent with their stated goals.

The truth is, the power to issue fiat currency is in a few hands, and above everything, those 'few hands' intend to keep it that way!  Power's highest priority is always to first and foremost maintain power.  Think of any revolution, which is naturally followed by extensive purges.  The goal of price stability has been replaced with the illusion of price stability.  This is where the title of this story becomes relevant (finally)!

Rather than aiming to maintain the value of fiat currency by maintaining a steady supply (having the money supply grow at the same rate as the population) central bankers have decided they want their cake and to eat it, too!  Bubbles, bailouts, quantitative easing, 0% interest rates, budget deficits totalling $1 trillion!  And yet, precious metals have only risen modestly.  OK, OK, 64% in two years for gold, and another 60% for silver (from its early 2008 peak) may not seem modest, but what is missing is a reference point.  America's national debt has grown atleast 50% since the start of 2008.  Thats just the public debt, not taking into consideration a further increase in the money supply from increases in private debt.

What has been happening is the central banks have decided if they couldn't have real price stability, they would atleast provide citizens with the illusion of it.  How could price stability be perceived, without being real?  The answer: suppression of precious metals prices.  Why?  Because precious metals, gold and silver primarily, are competing currencies to banker-issued fiat currency.   Keep the price low, or even drive it down, and people will theoretically retain faith in fancy (but intrinsically worthless) watermarked pieces of paper, or better yet, numbers on a computer screen.

In order to maintain power it is crucial for the Oligarchy (of which central bankers are only a small part) to discredit precious metals.  Price suppression is part of the project, but it can only last so long, and as we have seen, it is not possible to completely suppress demand for gold and silver.  So the natural complement to price suppression is a psychological operation, AKA psy-ops.  If you don't know what a psy-op is, think of the time leading up to the invasion of Iraq, when authority figures were regularly on TV acting alarmed over WMDs, fuzzy satellite images and Iraq's links to Al-Qaeda and 9/11.  The purpose is generally to shape opinion, change viewpoints, and cause confusion.

So thats where we are, in terms of gold and silver.  One method of conducting psy-ops is through the dissemination of disinformation.  Again, if you are not familiar with disinformation, it is best to turn the history books back to the chapter on the Nazis.  Joseph Goebbels famously stated "truth is the enemy of the state", while Hitler knew that "in the big lie there is always a certain force of credibility; because the broad masses of a nation are always more easily corrupted in the deeper strata of their emotional nature than consciously or voluntarily; and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods".

One of the biggest disinformation projects of our generation took place after 9/11.  The aim was to disseminate so many garbage conspiracy theories no one would waste their time with any of them, that is, a straw man argument writ large.  The same occurred after the assassination of JFK?  Who ordered it?  The Mob, Castro, the Russians, Israelis, bankers, the CIA?  Where did the shots come from, and so on.

Corporations have even used disinformation as a public relations tool to manufacture support on the internet, just Google "paid forum posters".  The same is happening to gold and silver, where seemingly intelligent forum members attempt to dismiss claims of gold and silver price suppression, or make arguments like "bankers own all the silver and gold, they are trying to drive up the price", or that COMEX is not on the verge of default.  If you own gold or silver you need to be aware there are people willing to say ANYTHING if they think it will result in you liquidating your gold or silver positions. 

Take Mark Carney, head of the Bank of Canada, and former Goldman Sachs employee, coincidentally.  The Bank of Canada recently released a statement which stated that people need to be aware of their increased interest expenses that would obviously arise from an increase in interest rates.  But the very next sentence re-itereated the Bank of Canada's desire to keep rates low for the forseeable future!  You want the actual Doublespeak, you say, OK, but don't say I didn't warn you:

"Our institutions should not be lulled into a false sense of security by current low rates.  Households need to be prudent in their borrowing, recognising that over the life of a mortgage, interest rates will often be much higher.

The weight of the adjustment beyond our shores means that demand for our products is weak and competition fierce. We must improve our competitiveness."

OK, so don't get used to low interest rates, but also, we must improve our competitiveness???  'Improve our competitiveness' is banker slang for 'devalue our currency', which is accomplished through low interest rates!  Basically the Bank of Canada is trying to convince us (psy-ops) that it doesn't WANT to devalue its currency, but it WILL.

If that isn't bad enough, keep a close eye on the Fed.  Try out this tasty morsel of mindf*ck from "Chairman Ben S. Bernanke, [who is] is trying to boost growth after near-zero interest rates and $1.7 trillion in securities purchases helped pull the economy out of recession without bringing down joblessness, [which is] close to a 26-year high." 

Wow, wrap your mind around that one, the economy is 'out of the recession', but unemployment is still as bad as it was when the economy was in recession!  Bringing down joblessness wasn't a necessary component of an economic recovery, apparently!  But now that we are out of the recession, the Fed is looking out for the Middle Class all of a sudden, and while the previous trillions may not have helped the average American this $600 billion of asset purchases will.  James Bullard, of the St. Louis Fed last week said QE2 was a success, and in the same breath said money printing was not the reason for the explosive run-up in commodity prices (such as coffee, oil, and silver). 

Three words for James Bullard, Mark Carney, and Ben Bernanke bring us to the end of another edition of PsychoNews: bold faced liars!

Merry Christmas & Happy Holidays!

Jonathan Swift Jr.
PsychoNews Team Editor

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The Calm Before the Storm

Riots are scary, mmkay

PsychoNews may have taken a short hiatus the last 10 days (our talents were required elsewhere) but at no point did the news stop being Psycho!  To recap, over the last 10 days or so we have seen:

In England students are starting to realize how the sovereign debt crises will affect them (a tripling of tuition costs!) and they aren't happy about it.  It is to be expected that people who are seemingly clueless and ignorant of the crisis in sovereign debt will react suddenly and even violently when they realize how their lives specifically will be impacted.   Students may not understand the root causes of the issues (meaning they will be powerless to address those issues) but they do know when they have been screwed!

Russia is experiencing extreme xenophobia as a result of the ongoing economic crisis, and it has manifested itself as race riots.  Italians are rioting because their Prime Minister Silvio Berlusconi (surely a future member of our hallowed Psycho Archives) has survived a no-confidence vote by the most narrow of margins.  Suffice to say Italians have already cast their vote of no-confidence in Berlusconi!

Expect similar things to happen in America when SS or EI benefits are ultimately cut off, or decreased, taxes increase, or the cost of food and gas skyrocket.

In other news, the Bank of Canada announced its intentions to devalue the Canadian dollar.  It is America's fault, naturally.  Canada did not want to devalue, but for the 'good of all Canadians' it will.  This is exactly why PsychoNews was founded, because Central Bankers are constantly making decisions which they purport to be in the best interests of everyone involved, while actually only being in the best interests of a small financial elite.  The Bank of Canada will buy US dollars with freshly printed (created out of thin air) Canadian dollars.  This increases the available supply of Canadian dollars, while the underlying Canadian economy (in terms of products and services provided) has remained the same size.  End result: currency devaluation.

Nigeria issued an arrest warrant for Dick Cheney, but ended up withdrawing it.  Oh, I'm sorry, let me rephrase.  They ended up withdrawing it AFTER Halliburton agreed to pay $250 million "in lieu of prosecution".  So basically Nigeria's Anti-Corruption Office just ran an extortion scheme on Dick Cheney and Halliburton, who have claimed they did nothing wrong.  Really?  So you did nothing wrong,  and decided not to contest the fine, and instead decided to pay $250 million out of the kindness of your heart? Or was it to make the problem go away?  There are quite clearly two sets of rules on this planet, although it would be wise not to wager money on the two sets of rules remaining distinct in perpetuity.  In other words, never underestimate people's desire for justice, and don't be surprised to see the current state of affairs come abruptly to an end.

The Bush Era tax cut extension is a mixed blessing.  On the one hand, middle class Americans will get to keep a decent share of their paycheck, but on the other, the richest 1% who are already making a killing will also see a reduction in their taxes.  For a country facing record deficits as well as record levels of income inequality this must surely go down as a clear sign of who runs the whole damn show.  Letting the tax cuts for the wealthiest Americans expire was a NO BRAINER

For those slow to accept the fact that the world is entering a distinctly new era, it would be wise to realize the magnitude of Japan's announcement to revamp its military.  Japan has relied on America for protection since the end of World War II.  That they now are planning on spending much more on their own protection reveals a great deal about what Japan considers likely to happen in the future.  If America's military might collapses, it is not America that China would be liable to invade, but Japan.  This realization has been manifested in Japan's desire to greatly increase their naval power.

On a final note, gold and silver have had an entertaining ride in the last few weeks.  Hopefully readers of PsychoNews have jumped on the opportunity to grab more physical while it is 'on sale' (price manipulated downwards).  This is exactly why we suggested holding on to 'dry powder' when buying precious metals, less than two weeks ago.  It allows one to take advantage of any short term drop in price!  Gold has risen almost 5% priced in Euros, in the last 30 days.  Silver is up over 15% in Euros, in the last 30 days.

The main reason for volatility in precious metals at the moment is because of gold and silver's status as competing currencies against the Central Banker's fiat currencies.  This status makes gold and silver highly sought after by hard asset investors, but it also puts a massive target on their back.  By suppressing gold and silver prices central bankers hope to convince investors that precious metals are highly volatile and unsuitable for investment purposes.  If gold and silver rise in price, it causes people to incrementally lose faith in the Central Bank's paper money.  If you are new to the topic of gold price suppression, check out GATA, the Gold Anti-Trust Action Committee.  Get your hands on physical, and avoid SLV and GLD.

As important as it is to keep up with all the PsychoNews in this world, it is even more important for people to enjoy the company of family and friends this holiday season.  Wishing all our readers the very best, Happy holidays to one and all, from the PsychoNews team.  Feel free to use our forum, which is still in the early stages of becoming a viable community.

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What was Fight Club really about? Could YOU start a Project Mayhem?

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Funny Money, Manic Markets, & Obsolete Media

Senator Bernie Sanders from Vermont delivered an amazing speech in the Senate on December 2nd that was right on the money in regards to the problems America (and by extension, the world) faces.

Link to YouTube video of Senator Sanders' speech

To quote:

"There is a war going on, and I'm not referring to the war in Iraq and Afghanistan"

"Against the disappearing and shrinking middle class of this country."

"Their [billionaires/Oligarchy] greed has no end"

"[there seems to be] very little concern for the people if it gets in the way of accumulating more and more power"

"top 1% of all earners earn 23% of all the income in this country"

"Exxon made $19 billion last year and paid $0 in taxes.  They got a refund..."
(12 minutes into video)

Sounds like Senator Bernie Sanders has been reading PsychoNews!  It is reassuring that  there is atleast one sane voice in the American Senate.  I recommend everyone watch atleast the first few minutes if you have not already seen it.

Sanders speaks the truth in the Senate

I only disagree with Sanders on a few minor points.  It is NOT greed that drives these Psychos, although it is a large part of it,  they prefer more POWER, more CONTROL, to more profits.  Income and wealth disparity is a great way to maintain control.  We must never get it backwards and think there is income and wealth disparity only due to greed.  Income inequality is gutting the middle class, as more and more of the profits go into fewer and fewer hands.  Also, I would go so far as to say they [the Oligarchy] have absolutely no concern for people who "get in the way of... more and more power".

At the same time that Senator Sanders was exposing the Oligarchy the FCC was continuing on its quest to censor the Internet.  Although it is doubtful the internet could be entirely censored, as workarounds would surely be available, it is becoming increasingly obvious that if nothing else the Oligarchy wants to give it a try.  This is another sign of their increasing desperation.  People are abandoning the print and television media, not the mindless drones who could care less about the news, but critical thinkers have definitely moved towards using the Internet almost exclusively for information.  It is also likely that WikiLeaks will be used as 'evidence' that the Internet must have 'accept limited censorship, in some circumstances'.

Worthy of a mention at least is the ongoing Global Warming Scam (AGW, Anthropogenic Global Warming).  As we all know too well, the buzz word has changed from Global Warming to 'Climate Change'.  This way the scientists can never be wrong, you see, because ANY change in the weather or climate can be explained as happening due to 'climate change'!  Environmental destruction (through pollution and exploitation of natural resources) is terrible, but fearmongering and implementing carbon taxes are not the ways to address it. 

To understand why carbon taxes would be  a bad idea, you must realize that carbon taxes are a bureaucrat's dream.  The dream of anyone seeking power and control over others, really.  You could limit how far people are allowed to drive to work.  How much recreational driving people are allowed.  Energy rationing could lead to curfews and automatic "lights out".  It would have the power to influence how much people warm their houses or how much air conditioning they use in the summer.  All in all, it would be an  absolute unmitigated nightmare to give unelected officials this kind of power.  The temptation to abuse the powers and issue exemptions (to the rich and powerful, of course) would be tremendous.

It is also worth bearing in mind that the global population would suffer A LOT more if global temperatures were to fall, than if they rise slightly.  Cooling is not something humans should be attempting to engineer!  On December 4th, a columnist for The Telegraph, Christopher Booker had a great column exposing the charade, which is definitely worth checking out.

On another topic, the media continues to serve purely as the mouthpiece of the Oligarchy.  Its not so much what is reported, as what ISN'T reported, and how news is prioritized, that is the problem.  A lot of attention is given to gossip, celebrity 'news' (the worship of glamour), and a host of other sensationalist BS. The content of the latest WikiLeaks is a fitting example, as surely more vital documents could have been leaked.  It revealed only that diplomats talk behind each others backs like giddy schoolgirls.

Meanwhile, way down in the 'Business News' if one looks closely you can read 'Unemployment rises to 9.8%".  Never mind that this figure understates true unemployment (and underemployment).  The media reports U3, as if it is the only measure of unemployment, and almost never mention U6, which currently sits at 17%!  "No state has defaulted since the Great Depression" but that may be changing soon, as PsychoNews reported earlier "large states like Illinois and California are increasingly at risk [of default]."

But enough talk about the 'real economy', the capital markets were once again manic-depressive this week.  You can see with some of the sharp drops that the market wants to go down, but the manic ramp ups are largely the result of easy money provided by the Zimbabwe Ben's Fed (through Quantitative Easing, a.k.a. creating money out of nothing).  It is worth mentioning that during Zimbabwe's hyperinflation their stock market went up by millions of %, so while shareholders may have retained some purchasing power it must be remembered that gains on the stock market (resulting not from economic growth but from money printing) are tempered by losses in purchasing power.

Manic-Depressive Market

The market caught in two minds, economy deteriorating, but currency deteriorating faster...

Dow vs Dollar

Last 5 days: Dollar index vs Dow Jones.  Dollar down, DJ up!

It was another good week for holders of gold and silver, so if that doesn't include you, now would be the time to get out of fiat currency.  Any time one opens a new position it is difficult to say whether you should buy at the current price, or hope for a price correction, and then buy.  The best advice is probably to do a bit of both, open a new position, but keep some money aside, 'dry powder' in case there is a short-lived drop in price.  There can be anxious moments with any investment, especially if you buy in, and the next day you see a 2 or 3% price drop! has a good daily commentary, although there are a number of others web sites that also deserve mention.

Last, but not least, the last week saw a number of surprising revelations (less so for readers of ZeroHedge and PsychoNews), as the Fed revealed it lent $9 trillion in the wake of the financial crisis in 2008.  Merrill Lynch, CitiGroup and Morgan Stanley each received $2 trillion dollars!  Now you know how making 1% or 2% can make you billions!  Borrow $2 trillion from the Fed, goose the stock market/gov't bonds a few points, take profits, voila, $20 billion dollars in profits.  Pay back the $2 trillion, and then pretend like its no big deal, the loan was paid back, wasn't it?  Why are people making a fuss?

Its not like you made $20 billion dollars from the loan and caused capital to be massively misallocated...  Ford, BMW and Toyota all revealed they were beneficiaries, although at the time they claimed they had managed to make do without aid!

If you are late to the party, and you are wondering, what is causing all this craziness, may we suggest a highly technical and dry report by Willem Buiter, of the Financial Times, called "Chief Economist Essay: Sovereign Debt Crisis Update".  Perhaps we can save you some time, and sum it up thusly: "the risk of sovereign default is manifest today in Western Europe, especially in the... periphery. We expect these concerns to extend soon [and] encompass Japan and the US."

As stated many times previously, PsychoNews believes Central Bankers will choose hyperinflation and currency crisis over debt default.  Either road will ultimately bring us to the same destination, the death of fiat currency (Euro, Dollar, Yen).  Perhaps only one thing is certain: these are interesting times!

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PsychoNews Update, 12/1 Edition

Posted on PsychoNews , 1st December 2010 | Tags: Currency Wars, Race to the Bottom, Devaluation, Dollar Crash, By the Bankers For the Bankers, Bailouts, Quantitative Easing, Money Printing, Destruction of the Dollar, Rothschild, Rothschild Takes England, Hyperinflation, Oligarchy, World Reserve Currency, Gold Standard, Sound Money

This week's PsychoNews Update will start with a short anecdote from history. The year is 1815, and Napoleon has just been defeated at Waterloo.  There is a blockade on the English Channel, but a ship belonging to a certain banker named Rothschild is allowed through.  The Rothschilds are already prominent bankers, but they are on the verge of their greatest ever 'trade'.  They are known for having the best couriers in Europe, and routinely hear breaking news before any one else.

On this day, the news looks to be grim.  (Nathaniel Mayer) Rothschild instructs all his agents to sell all their holdings of British sovereign debt, which quickly sets off a massive panic, as all traders know what news must have come through.  The British have been defeated by Napoleon.  Sovereign debt will not be repaid, and is therefore quite useless.  The value drops to cents on the dollar, when suddenly Rothschild instructs his agents to quietly buy up as much as they can.  News filters through in the coming days.  The English have won!  Napoleon has been defeated! 

The English may have won, but all English debt is in the hands of Nathaniel Rothschild, bought for pennies on the dollar.  We have all heard that Napoleon was defeated at Waterloo.  Now we know that the real winners that day were not the British, but a powerful banking elite.  “In the year 1848 the Paris house  (of Rothschild) [alone] was reckoned to be worth 600,000,000 francs as against 352,000,000 francs held by all the other Paris bankers.”  This short historical anecdote is mentioned in the belief that history repeats, if its lessons are left unlearnt.  Markets can be just as easily spooked and manipulated by the 'big boys' today.

If you have made it through another week, with your sanity mostly intact, it is time to give yourself a small round of applause.  China has been rumbling about raising interest rates, which led to a sharp sell off on Hong Kong's stock market, but the Central Bank has held off actually raising them by a meaningful amount.  "Inflation is a top problem for China," but it is equally important for them to keep their currency pegged to the US dollar.   Appreciation in the Yuan would see China lose a great deal of its manufacturing edge, something they are not at all keen on.

China has attempted to cool off its red hot real estate market by enacting various restrictions, such as larger downpayments when buying an 'investment property', and larger reserve requirements for banks.  Unfortunately, Chinese real estate may prove to be a mediocre investment, as there is already massive surplus capacity.  While Japan built bridges to nowhere, and the Fed gives handouts to Wall Street firms (bailouts, asset purchases, quantitative easing) China does things its own way.  China builds ghost cities!

Welcome to Rush hour in Ordos!
Bought, and Paid For. Sitting Empty.

But China's Real Estate woes and banking problems are down the road.  The current problems are in America and Europe.  There has been a Debt Binge, which now is being resolved through the issuance of more debt.  While private debts might be shrinking slightly, as credit cards are defaulted on, homes foreclosed, and mortgages paid off, public debt is making up for it.  By this we mean of course, bailouts, quantitative easing, deficit spending, and money to prop up the stock market. 

Obviously, one cannot resolve the problem of over-indebtedness by going into more debt.  Ssssshhh!  Wouldn't want the public to second guess the good intentions of the Central Bankers, now would we?

In other news, WikiLeaks released a huge volume of material, most of which looks fit only for gossip magazines.  It is difficult not to question their motives, although their stated intentions are definitely in the right place.  Surely WikiLeaks should not be holding on to its 'best stuff', it should be disseminated immediately!  Ireland's bailout is well under way, but already the talk has begun of bailing out Portugal.  While we are at it, lets bailout Spain, whats a few trillion euro?  Bailouts reward failure, and encourage fraud.  It should be the policy of absolute last resort.  So what does its frequent use tell us?

Central bankers are getting desperate.  And for good reason!  Because economic problems so often spill over into the political arena (i.e. quarrels over money tend to lead to war) PsychoNews will continue its coverage of sovereign debt and budget deficits until Sound Money inevitably returns.    In the mean time, remember, the best wealth is a good health! 

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Bailouts, Money Printing and Reserve Currencies

In a story barely mentioned in the Mainstream Media (but picked up by The Drudge Report) China and Russia have agreed to no longer use US dollars for trade between the nations.  If both nations come to similar agreements with other major trade partners then their need (demand) for US dollars is GREATLY reduced.  The US Dollar is currently the world reserve currency, but that position is now increasingly coming into question.  Up until now there had only been whispered threats by central bankers and finance ministers.
The move by Russia and China is the first overt step towards replacing the world reserve currency. 

As has been discussed previously here at PsychoNews, it is very likely the US dollar will be replaced as world reserve currency, but what will replace it is still very much up in the air.  An important distinction must be made between the US economy, and the US dollar.  The economy is the result of the entire nation's production and consumption.  The dollar is created out of nothing,  and is controlled by a small elite.  They put their pants on one leg at a time, exactly like you and I, except they can create money out of nothing.

So from that perspective, it is possible to sympathize with Russia and China, for not wanting to accept dollars as payment in return for resources like gold, and oil, and goods, such as trains and trucks.  Clearly it is not the common people that benefit from money being created out of nothing.  Massive money printing has had no impact in terms of reducing unemployment or improving the quality of living of the average Joe.
As we have asked so often, we must ask again, who DOES benefit?

Politicians and bankers.  Politicians can deficit spend to their hearts content, because even if no one will lend the government money, the central bank can be counted on to create it out of nothing, and lend it to the government!  Which reveals why bankers are so eager to do it.  The money is created out of nothing, but it is not GIVEN to the government, it is not made available for a small fee, no, it is LENT to the government!  When money can be created out of nothing a politician has arguably the easiest job in the world, he only has to decide who gets the money, and how much.  Thought is given to who benefits (those receiving the money) but no thought is spared for those who suffer (when money is created out of nothing, everyone ELSE sees the purchasing power of their money decrease).

Now what are we seeing in Ireland?  For years they have been spending, spending, spending.  Meanwhile, their corporate tax rate is one of the lowest in the world, at 12.5%.  This obviously made Ireland an ideal location for massive multinational corporations' base operations.  Without getting into details on tax avoidance, suffice it to say, large multinationals would record their revenues as having been generated in Ireland, so as to be subject to a very meagre tax rate. 

So not only does Ireland provide a sweetheart deal for the world's largest corporations, in the past year the Irish taxpayers have bailed out the 5 biggest Irish banks.  How can a country be broke, but at the same time have enough money to bail out 5 absolutely massive banks?  Wouldn't the sensible thing be to let the banks fail, if they took risks that backfired?  Wouldn't the sensible thing be to hike corporate tax rates, not just to cut welfare spending, and raising the average citizen's income taxes?  What does this tell us?  Well, very clearly the Irish people have been sold into slavery by their politicians.

Think about it.  Banks were insolvent.  They had made many billions in bad loans.  Therefore, the employees, the management, the stock holders, and the bondholders should all be punished for taking excessive risks, and a capitalist system punishes by way of bankruptcy.  Shareholders, management and bondholders would all say good bye to a few billion dollars, and that would be that.  But instead the bankers have lobbied the politicians (the two groups are inseperable and have become practically indistinguishable), who have coughed up billions of tax payer money.  They have sold the unborn future generations of Ireland into debt slavery.  The very audacity of it all is what boggles the mind most.

Why does Ireland matter?  Whats the big deal?  Well, how the people of Ireland are being treated is a glimpse into what the bankers and polticians will attempt to emulate in every nation.  Banks don't go bankrupt, they get bailed out.  Creditors get 100 cents on the dollar, even if it means higher income taxes and cuts to education and healthcare budgets.  Corporations continue with business as usual knowing their tax rates will not be increased.  No one goes to jail.   More than a hundred thousand people were protesting in the streets of Dublin today, and yet, the BBC mentions it only in passing. 

Meanwhile, Germany "call[ed] last month... to require bondholders to automatically take writedowns, or haircuts, in the event of budget crises after mid-2013".  What does that mean?  Germany has brought up the very sensible point made above.  If a country is insolvent, then shouldn't those who are owed money simply admit to themselves they will not be repaid in full?  The lenders must realize they have made bad loans (that will NOT be repaid).  But of course, the banksters will never admit that.  Their role as part of the Oligarchy is to squeeze blood out of stones.  People struggling to put food on the table don't generally have the resources to mount a meaningful rebellion, and so financial crises will be used whenever possible to increase the extent of the Oligarchy's control.  You will notice that Germany wants 'haircuts' for any crisis AFTER 2013!  It is implying that until then, NO CREDITOR (lender) will take a haircut!

So where does that leave us?  Well, it is clear that the US dollar losing world reserve currency status will have a VERY widely felt impact, especially inside the borders of America.  When that impact will be felt is unclear, but it could happen literally any day now.  More likely is that a more gradual loss of reserve currency status will occur, but even still, it will be painful.  Basically, dollars will come flooding back to America, and this will push up the price of almost all goods (real estate is unlikely to be esp. attractive, so although the price of EVERYTHING will likely go up don't expect a repeat of the housing bubble), including food and gas prices. 

What is needed?  Well, the world needs a new world reserve currency, that isn't controlled by a small group of banksters (The Federal Reserve), and can't be conjured into existence.  Likely this will mean a return to bimetallism, that is, currencies backed by gold and silver. Another possibility is a commodity-backed world reserve currency, although commodities do not store value as well as precious metals (food goes mouldy, meat goes bad, gasoline can only sit for so long, etc).  Likewise, the US needs a new Dollar,  free from the control of a small group, and that cannot be created out of nothing.  But that is not enough.  The debts currently in existence will need to be forgiven. Otherwise lenders who created money of nothing will be repaid with Sound Money.  It is time for a Jubilee, and a return to Sound Money.

Or we can take a page from Ireland. 

Over one-hundred thousand Irish are expected to emigrate in the next few years.

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Move Along, Nothing To See Here

Posted on PsychoNews , 22nd November 2010 | Tags: Currency Wars, Race to the Bottom, Devaluation, Dollar Crash, By the Bankers For the Bankers, Quantitative Easing, Money Printing, Destruction of the Dollar, Nothing To See Here, Hyperinflation, Oligarchy, One World Currency, Gold Standard, Sound Money

As people start to get fed up, and start asking more questions of the Government, Central Bankers, and Wall St, our loving 'Shepards' (really, wolves in sheep's clothing) are increasingly coming out to reassure us.  Bernanke came out on Nov. 6th, and told the flock "he’s [not] trying to increase inflation as a means to help the U.S. economy grow". 

Conjuring $600 billion dollars out of thin air, and and lending it to the government causes inflation????   Increased money supply, with a stable pool of goods and services, increases the price of those goods and services?  Who would ever have thought!  Kids playing Monopoly could figure out that much.

On November 19th, Bernanke defended his decision, and said "monetary stimulus... will aid the world economy".   The level of dishonesty is, frankly, infuriating.  If you want to understand PhD economists, the historical precedent to examine would be the Priest class of the Middle Ages.  Remember, these guys were speaking (preaching in) Latin to audiences who typically only understood English, French,  or German.  The parallels don't stop there. 

Not only do PhD Economists speak their own language (e.g. Quantitative Easing), the Priest class claimed they alone could interpret God's Will.  This is exactly what Bernanke is doing, he alone knows the correct solution, and if we disagree with him, it is because of shortcomings in our own understanding.  The Bernanke is never wrong.  PsychoNews exists to cut through the bullsh*t so allow us to 'break the news': The US Dollar will lose its status as world reserve currency.  Bernanke is orchestrating and overseeing the devaluation of the US Dollar. 

In order to minimize the effects this devaluation has on world trade  (in other words, the business plans of multinational corporations) central bankers decided to co-ordinate their devaluation efforts.  But devaluation of a currency means a decrease in purchasing power.  Why would hundreds of millions of people living paycheck to paycheck agree to a decrease in their purchasing power?  THEY WON'T.  So the Central Bankers have decided to lie, and present the entire devaluation as being the fault of 'others'.  The US dollar must be devalued because of China.  The Euro and the Yuan have to be devalued because of America's actions.  The Central Bankers use each other as scapegoats in public, while co-ordinating their efforts in private.

Why is the currency being devalued?  Because of sovereign debt crises, that is, national debts that are becoming mathematically IMPOSSIBLE to repay.  In addition to the national debt, the government is on the hook for 'Unfunded liabilities' amounting to trillions of dollars.  An unfunded liability is basically a promise to pay someone (Social Security, Medicare) which you do not have the money for.  The problem is, people have been paying for Medicare and Social Security they have not yet claimed!  When they are told their benefits will be reduced or taxes are increasing there will be widespread unrest.

So instead, the 'solution'  offered by central bankers is to devalue the currency, so that in effect, people will get less benefits for their buck than they were promised.   The death of fiat currency then is fait accompli, a done deal.  We are watching a car crash in slow-motion.  Who benefits?  Well, consider that Central Banks are run "By the Bankers, For the Bankers".  It is the Financial Elite, the Oligarchy that benefits from  the controlled demolition of fiat currency.  If governments around the world merely defaulted on their debt the common people would benefit a lot more, but the financial elite who are owed the money would suffer.  Can't have that, now can we?

Car Crash - Nothing to see here!
I crashed the US Dollar.  But please don't take away my license to print money!  I'll be more responsible with the next world reserve 
currency, honest!  - Anonymous Central Banker

You can't stop the car crash, but you can still get out of the car.  Diversify out of your fiat currency, stock up on essentials (from toilet paper to baked beans) and put your savings into precious metals (gold and silver). The choice is yours.   Just don't expect disingenuous politicians and central bankers to give you the same advice, to get out of the car.  The Oligarchs are primarily concerned with retaining & increasing control. They aren't concerned with hyperinflation, as long as they are in charge of whatever currency replaces the US Dollar.  A war has silently been declared on the common people of the world.  As with any fight, either side could come out on top.  Bring it on.

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PsychoNews Update 11/18 Edition

Posted on PsychoNews, 18th November 2010 | Tags: Currency Wars, Race to the Bottom, Devaluation, Quantitative Easing, Money Printing, Destruction of the Dollar, Debt Bubble, Misconceptions, Hyperinflation, Oligarchy, One World Currency, Gold Standard, Sound Money

It has been another crazy week, which of course is the "new normal".   The stock market has been twitching up and down, commodities and currencies have been all over the map.  Ireland's government came out and stated unequivocally that they don't need to be bailed out.  The markets crashed, the Euro fell, and the dollar rallied.  Suddenly nobody knew what was going to happen (except a few central bankers, maybe).  

Would the dollar continue its strong rally, making gold and other commodities crash in price?  One research firm made a bold call that "The game is over", and that a strong dollar rally is imminent.  Not quite.  Their conclusion fails because they viewed Chinese stimulus as being the cause of the commodity rally.  While demand from China is certainly a major factor in determining price, perhaps they have underestimated the extent to which dollar devaluation decreases purchasing power, i.e. increases commodity prices.

Today, what do you know, the Irish Central Bank has come out and said the Irish Republic will accept "a very substantial loan".  A bailout.  Money will be conjured into existence, and given to the Irish government, in addition to a seperate bailout package (A.K.A. hush money) for the Irish banks.  "We're devaluating the Euro, here's your share, now shut up!"

Read the rest in the November Archives...

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The Currency Wars, Part 4

The Return of the Dollar

Recent market moves have been volatile, to say the least.  Commodities across the board have sold off, equities and bonds are also both down.  Gold and silver slid down a little further, but bringing them to a good level  for restocking.  Gold and silver are not for trading, they are for wealth preservation over the long term, so temporary price movements only signal a good time to buy more.

Some of the commodity sell off can be attributed to changing margin requirements by the Chicago Mercantile Exchange, but most of it is due to short-term strength in the US dollar.  The reason for strength in the dollar in this case is weakness in the Euro.  This goes along perfectly with what we discussed in the other parts of our series on the Currency Wars.  The major fiats (Euro, Dollar) are taking turns devaluating, and now it is the Euro's turn. 

The EU talked a good game about wanting to cut deficits, and paying more attention to budgets but in reality they are consigned to bailing out the PIIGS (Portugal, Ireland, Italy, Greece, Spain) and devaluing the Euro...

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PsychoNews Update, 11/11 Edition

This weekend the G20 will meet.  The entire world is in the midst of financial upheaval.  Central banks around the world have a fever, and the prescription is printing money.  Unemployment continues to grow without end in sight.  Prices are increasing, portions are decreasing (as a way to offer less product for the same price, of course). 

But this is not merely a recession or the result of a credit crisis, this is the end game to the 40-year long process of de-industrializing America.  Why was this done, one might ask, or who was responsible?  To answer this, one must ask, who benefits, cui bono?  A lot of money has been made through downsizing, outsourcing and offshoring, from sweatshops, tax havens and no-bid contracts.  But ultimately the purpose is and always has been power.  Control. 

What the Oligarchy wants is a one world currency...

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The Currency Wars cont., part 3

Tags: Currency Wars, Race to the Bottom, Devaluation, Debt Bubble, Foreclosuregate, Housing Bubble, Housing Bust, Oligarchy, Crony Capitalism, Fiat, Central Banks, Compulsive Liars

The international monetary game of chicken known as the Currency Wars continues unabated.  It is a 'pull out all the stops' race to the bottom for the world's fiat currencies.  Gold broke out over $1400 today. It is a number we will likely look back on saying "remember when gold was cheap?"  Gold is up 27% in the last year. Silver is up an astounding 53%.

Many articles on the net have given numerous examples of inflation, such as the rising price of essential commodities like cotton, oats, corn and wheat.  And yet, Bernanke continues his charade, and insists "We are not in the business of trying to create inflation."

Continue to the November Archives...

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Misconceptions: Quantitative Easing & The Fed

Posted on PsychoNews , 5th November 2010 | Tags: Currency Wars, Race to the Bottom, Devaluation, Debt Bubble, Misconceptions, Hyperinflation, Oligarchy

Many of our readers will already know the following, but we felt it deserves repeating (maybe even shouting at the top of one's lungs at busy street corners):

The Federal Reserve is NOT a part of the government.  Congress has no authority over the Fed's actions.  The President has no impact on its decisions either.  It is beholden to no one, except the privately-owned banks that own the Fed's shares.  Once one grasps this fundamental truth the Fed's policy decisions make a whole lot more sense.  See Issue #1

The sooner people realize that there is a private group that can create money out of nothing at will, the sooner things will start improving....

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Misconceptions: Hyperinflation & The Oligarchy

Posted on PsychoNews , 1st November 2010 | Tags: Currency Wars, Race to the Bottom, Devaluation, Debt Bubble, Misconceptions, Hyperinflation, Oligarchy

Certain ideas are becoming more prevalent all the time.  You can see it around you.  People who are dissatisfied with politicians are starting to catch on to the scam.  People are tired of the de-industrialization and being told it is no big deal that everything is manufactured overseas.  

There is the lingering realization that everything is not as it appears, that for one the mainstream media is not trying to educate and inform you. Politicians only want to listen to your problems, they don't care for your solutions.  Apparently we should be happy that someone IS even listening.  But for all the increased awareness and truths being revealed there are still a few misconceptions.  We all harbored a few of these ourselves at one point or another.

Here are some of the more harmful misconceptions that currently abound:

Politicians are 'stupid' or 'inept'.
 When people explain away harmful policy decisions with this gem what they are actually doing is serving as apologists...

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Posted on PsychoNews ,20th October 2010 | Tags: Foreclosure Crisis, Foreclosuregate, Foreclosure Crisis, Too Big To Fail

Enter PsychoNews' October Archives ...

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The Question of the Oligarchy

Posted on PsychoNews , 23rd October 2010 | Tags: Military Industrial Complex, Oligarchy, Big Pharma, Too Big To Fail, Wall St Bailouts, Media, Regulatory Capture

Enter PsychoNews' October Archives ...

Continue ... or to read part one

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About PsychoNews

about this blog

PsychoNews was established on the following principles: the average citizen is not suffering from a lack of information, but rather we are exposed to TOO MUCH information (also known as BS)
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