I n i t ia l P r a i s e f or H ig h A l e rt

High Alert is an exceptionally well-conceived and executed book. It is both

scholarly and accessible, which is not easy to do or commonly achieved. I
enjoyed it immensely.
G. Edward Griffin, author, Creature From Jekyll Island
Founder, Freedom-Force.org

If you would like you and your family to enjoy a good life in every way and
you would like your grandchildren to have a better life overall, you must read
this book. The world can change with just one concept personal
responsibility. Thank you for having the guts to tell the world what they
really need to do.
Patrick C. Gorman, President of Resource Consultants.
Host of "Hard Money Watch"

"I think High Alert is a wonderfully provocative book. You have your own
voice, your writing is clear and concise, the book is well organized, and rather
than simply scaring a reader with your extremely intriguing theories you've
suggested actions and tips so as to not leave him/her hanging in fear.
Pamela Browne

"High Alert puts the reader in the center of the global transformation
providing insights, cautions, history and personal financial solutions.
Important, you bet. While the Internet encourages freedom, the financial
elite are losing ground with their money games. A must read!
David Morgan,
publisher, Silver-Investor.com

More Praise for High Alert

High Alert will be the subject of much discussion and debate within the
freedom movement over the next year so.
Tom Knapp,
Founder RationalReview.org

Bravo! Every few years I hear about some must read financial text. In fact, this
is the first book in ages with truly original thinking, and insights I cant find
anywhere else. High Alertis a masterfully prescient perspective of the financial
and sociopolitical effects of the Internet, and the snowballing financial
earthquake it is generating. For anyone who wants to know the causes of our
rapidly decaying economic system this is the book to read. For those who want
to become wealthy, High Alerts strategies are the ones to follow. Prepare to
have your eyes opened!
James Braha,
investment commentator

Not since Jim Rodgers Hot Commodities has there come along a more
accessible and compelling sneak preview of things to come in the global
marketplace, and how to profit from the whirlwind ahead. Information is one
of the currencies of this new era, but silver and gold will return as currencies as
well, as the scales fall from the publics eyes and the current fiat-money system
is seen for the naked emperor that it is. High Alert explains [these issues) in
elegant, page-turning prose and puts both the present and the future in
intelligent context.
David Bond,
editor, SilverMiners.com
Wile and Fadiman propose an ingenious hypothesis. If its right, their VESTS
will get you through the coming storm.
Jim Babka,
President, DownsizeDC.org

HIGH

ALERT
How the Internet and the global power elite
are causing a financial hurricane
and how to profit from it.

anthony wile
founder of free market news network
FMNN.COM

THIRD EDITION
With Mark Fadiman

ABP
Appenzeller Business Press AG

All rights reserved. No part of this publication may be reproduced, stored in a special
system, or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise without prior permission of the publisher.
This publication contains the opinions and ideas of its authors and is designed to provide
useful advice in regard to the subject matter covered. However, this publication is offered
with the understanding that neither the authors nor the publisher is engaged in rendering
legal, accounting or other professional service. If legal advice or other expert assistance is
required, the services of a competent professional person should be sought. The authors
and publisher specifically disclaim any responsibility for liability, loss or risk, personal or
otherwise, that is incurred as a consequence, directly or indirectly, of the use and
application of this book or any of its contents.
Notwithstanding anything to the contrary set forth herein, Appenzeller Business Press AG,
its officers and employees, affiliates, successors and assigns shall not, directly or indirectly,
be liable, in any way, to the reader or any other person for any reliance upon the
information contained herein, or inaccuracies or errors in or omissions from the book,
including, but not limited to, financial or investment data.
Any specific repetition in various published works from the publisher or others, unless
noted, is unintentional and may be the result of the nature of financial terminology and
the fairly narrow focus of the financial writing and editing in which the publisher and
authors are involved.

First-person statements in the narrative of this book are Anthony Wiles.

Mandarin Chinese and German versions now available

Copyright 2006-2008 Appenzeller Business Press AG THIRD EDITION

ISBN: 978-3-905874-00-6

This book is dedicated to the blessings in my life

(and the reason I remain at high alert),
my lovely wife Hillary and my three wonderful children
Gabrielle, Jesse and Julian.
Anthony Wile

Acknowledgments
Harry Browne: You lent your name and spirit to Free Market News Network,
Corp. (FMNN) long before it was a success. You were an inspiration throughout and
you have left many behind to carry on your great work.
G. Edward Griffin: The Creature From Jekyll Island was one of the most
important and truthful books of 20th-century financial history. Thank you for your
counsel and guidance in helping make this book a reality.
Mark Fadiman: What is left to say but Hallelujah!
Other free-market thinkers I would like to thank for aid or inspiration,
personally or professionally: Jim Babka, William Bonner, Douglas Casey, Terry Coxon,
Richard Daughty, Dr. Richard M. Ebeling, Marshall Fritz, Pat Gorman, Richard J. Maybury,
David Morgan, William Murphy, Bernard von NotHaus, Dr. Lawrence Parks, Dr. Ron Paul
(R-Texas), Lew Rockwell, David Smith, Dr. Helen Szamuely and Christian Wirth.
Anthony Wile

< 4 >

AU T H O R S N O T E

Early in the 2000s, I became convinced of two things. First, precious

metals were going to go up in price a good deal. Second, thanks to the Internet,
sociopolitical coverage and hard-money analysis were being combined to offer a
new and truthful communications medium that represented a tremendous
business opportunity.
We were right about honest money gold and silver; we are being
proven right about the promise of the new Internet site we started, as well. After
about four years, FreeMarketNews.com Free Market News Network, Corp.
(FMNN) is closing in on five million viewers a year. Give it another 10-12 months
and viewership may be north of 10 million.
While I am no longer involved with FMNN as chairman or CEO, I feel blessed by
the many friends Ive made among FMNNs commentators and viewers. Thanks to all of
you who have been so patient while I struggled with this book, High Alert especially
those who made such generous offers to help when I was stuck. And thanks, especially,
to those whom I have called my sounding board including FMNNs sadly departed
president and free-market champion Harry Browne, Federal Reserve historian G.
Edward Griffin, and hard-money economist Dr. Lawrence Parks among others. The best
herein is theirs. Only the defects are mine.
Anthony Wile

< 5 >

FOREWORD

When High Alert first came to my attention in 2006, it was a particularly hectic
time for me, and I was not able to read the book in its entirety. I checked the index for
critical topics, read selected portions pertaining to my special interests, and was
impressed by its scope and scholarship. A year later, when Anthony invited me to write
the Introduction to the second edition I picked up the book once again and, this time,
plowed through it cover to cover. What a delightful journey it was.
This is an investment guide book that probes deeply into the political and
economic issues that are shaping our future. It shows where the economic break points
are going to occur and what you can do to ride out the financial crisis that now is building
around us.
High Alert is similar to a coffee-table book in that you can flip through the
sections and, starting at almost any page, you will find something of interest. Yet, this is
not just for casual reading. There is a lot of history here, and you will discover thousands
of factual treasures along the way.
The message of this book is simple: You dont have to be a victim of the system.
You dont have to be defeated by a rigged stock market. You dont have to be crushed by
inflation. The first step toward financial survival is to wake up to the reality of the world in
which you live, a world that is quite different from the images created by our mass media.
The second step is to take charge of your life through strategic decisions involving your
economic and political well being.
This book will get you up to speed with both of these steps. An incredible amount
of history has been crammed into these pages and presented in a highly accessible form.
Eventually, you may want to learn more about the events described here, and that will lead
you to the fifty volumes contained in the bibliography; but when you reach page 244 of

< 6 >

this single volume, you will have a sufficiently clear view of the historical landscape to
make correct decisions. At the end of each chapter you will find a summary that clarifies
your course of action.
The only significant point on which Anthony and I have different views is that I
am not enthusiastic about investments in China. My reasons involve moral and strategic
issues. Morally, I cannot endorse profit-seeking from slave labor (which is widespread in
China) and, strategically, I do not trust Chinese leaders to keep their agreements. Until
they truly renounce Leninism, I believe they will use Western capital to build China to
where it can dominate the world. At that point, I believe they will confiscate Western
business assets from those who naively gave them the money. Other than this, I find
myself nodding in agreement on every page. Anthony has done an amazing job of
pulling it all together and getting it right.
The stores are full of books that offer advice on how to benefit from an economic
collapse, how to get rich while others are pauperized, how to make a fortune on the
downfall of America. As I wrote in my book, The Creature from Jekyll Island; A Second
Look at The Federal Reserve:
What is disturbing about this investment concept is that it actually may help to
make matters worse. By focusing on finding clever ways to avoid the effects of inflation or
of making a profit from it, we are doing nothing to stop it and, thereby, encouraging its
continuation. Those who are gaining from inflation are not likely to offer serious resistance
to it. As they watch their profits pile up, they may become its most ardent supporters
even though they know deep in their hearts that it will destroy them in the end.
There is nothing wrong with trying to preserve ones capital in hard times, but
the only real solution is to use ones capital to stop the present trends. In the long run,
there is no way to profit from the destruction of ones country. There is no way to protect
your assets, your home, your job, your family, your freedom. There is no refuge from
totalitarian systems that are the inevitable consequence of economic collapse. The only
real solution is to stop and then reverse the destructive forces that are described in this
study.
Anthony understands this reality and, even though his focus in this book is on
how to survive and benefit economically, he has demonstrated his commitment to
reform by his membership in Freedom Force International, an organization dedicated to
optimum freedom and inflation-proof money. The members of Freedom Force are not
mere complainers. They have a plan and are determined to change the course of history.
I invite you to join with us in this historic mission.
G. Edward Griffin
Founder, Freedom Force International
www.Freedom-Force.org

< 7 >

CONTENTS

AUTHORS NOTE
FOREWORD

SOME DEFINITIONS

10

PREFACE CONTENT AND THEMES

16

CHAPTER 1
THE HURRICANE ARRIVES 26
Reasons for the financial storm upon us.
CHAPTER 2
THE LOOMING INFLATIONARY EYE
Focus on inflation and hyperinflation.

37

CHAPTER 3
RISING MONEY POWER 49
How the power elite got their money and power.
CHAPTER 4
WAR IS PEACE AND PROFITABLE
Ruining lives for fun and profit.

82

CHAPTER 5
BANKING SURGE 96
How the banking industrys money power grew through the ages.
< 8 >

CHAPTER 6
EUROPE, DIFFUSION AND DESTRUCTION 114
Free societies and what is necessary to keep them that way.
CHAPTER 7
U.S. TSUNAMI 134
Power elite interference in the U.S. Republic and economy.
CHAPTER 8
ONSLAUGHT OF THE FED 155
How the Federal Reserve has wrecked America.
CHAPTER 9
EXPANDING NET 168
The Web versus money power.
CHAPTER 10
COUNTERCURRENTS AND TWO PERCENTERS 183
How the Internet is adding to the worlds free-market thinkers.
CHAPTER 11
POWER ELITE PROMOTIONS 195
How the power elite gets rich by scaring you.
CHAPTER 12
PROFIT FROM THE FINANCIAL HURRICANE 222
Sociopolitical and economic solutions to the money power problem.
CONCLUSION

236

SOME FMNN FREE-MARKET THINKERS

AFTERWORD

245

249

SELECTED NOTES & WEB REFERENCES

BIBLIOGRAPHY
INDEX

262

266
< 9 >

255

SOME DEFINITIONS

Age of Promotion: The 20th century saw two world wars and the construction of a
massive, international apparatus, ostensibly to mediate quarrels between nation-states
and create international standards. But what seems the work of many is actually the
brainchild of a very few the global power elite. Today international organizations such
as the United Nations, World Bank, World Trade Organization and the World Health
Organization act as a kind of echo chamber, each reinforcing certain messages and
discarding others. Concepts such as bird flu, Islamofascism and peak oil are pushed
relentlessly until people unquestioningly accept their fearful premises and demand
action. Those with the wherewithal to provide solutions products, services and
corporate offerings via public markets generate vast profits. Conveniently, those who
are most vociferous about these fearful global messages are often in a position to flog
solutions via products, services and public offerings. These may not ultimately save the
planet but certainly create great wealth for those involved. As the Internet continues to
expose the reality of this global apparatus, the Age of Promotion may well begin to lose
momentum. Tomorrow, historians may speak of it in the past tense.
Age of Connectivity: More and more people turn to the Internet for their information
and news, especially young people. The information on the Net is radically different than
that of the controlled mainstream media. Eventually, this must result in a kind of
cultural cognitive dissonance.
Alternative Net media: Mostly Internet-based, free-market oriented, or at least skeptical
of commonly accepted memes. Alternative Net reporting often focuses on the power
elite in a way that the mainstream media does not. For this reason, among others, critics

< 10 >

have attempted to marginalize the message as being the result of conspiracism (see
below). So far the labeling has had little effect, with the alternative Net Media gaining
power and viewers at the expense of mainstream media. The mainstream media
subscribes to the mainstream money model. This involves a belief in a central bankingoriented, government-backed currency system, one in which wise men make decisions
as to interest rates, money supply and other issues having to do with where the economy
is headed and how it will perform.
Business cycle: This is a descriptive term for the full gamut of economic options
including boom, bust and the varying conditions in between. Government-backed
paper-money regimes now prevalent throughout the world overstimulate the
economy through the issuance of too much money and credit. After a while, this causes
a distortive boom in one or several asset classes. Eventually, the boom turns rapidly into
a bust (recession, depression), and those without the wisdom or foresight to remove
themselves from the cycle usually lose most, if not all, of what they have gained.
Investors can take advantage of business cycles to buy or sell certain securities or
commodities, depending on their reading of where the cycle is. At the beginning of the
cycle, stock in manufacturing companies may be appropriate, while at the end of the
cycle, especially in a recessionary inflation, commodities and other tangible goods may
prove worthwhile investments. Any unbiased appraisal of the global economy shows
that the business cycle has mini-, major- and even super-cycles. These cycles may vary
from country to country. In the United States in the 2000s, the economy has exhibited
behavior that one would expect from a business super-cycle offering a recessionary
inflation verging on soft or hard hyperinflation.
Central bank: Empowered with the franchise to generate debt-based money on behalf
of the government, the modern central bank is a creature of the banking industry. Since
it is not encumbered by any formal commodity ratio, free-market thinkers often refer to
such a product as fiat, and it is distributed through other large banks called
commercial banks. The American central bank is the Federal Reserve. Thanks to the
Internet, controversy is again growing in the United States over the fairness of the
system and the real reasons for its implementation. More and more understand that
inflation is the result of too much credit and too many paper bills issued by central
bankers who pretend to be inflation hawks even as they flood their countries with
money, the value of which degenerates.
Common law: Descended from Roman law, expanded by unwritten local customs and
cultivated by private adjudication or informal gatherings of the local public, British common
law emphasized precedent previous decisions. Its best aspects were its purposeful
simplicity, adversarial configuration and emphasis on obvious crimes needing relief
(stealing, murder, etc.). Under this system, the finer points of social interaction were

< 11 >

negotiated, not litigated. After the 1500s, common law was regularized by the Crown with trial
by jury and a further appeal, if warranted, to the king himself. American common law predates
the government-run judiciary established by the founding fathers, many of whom were
lawyers.
Conspiracism: One who is a conspiracist is supposed to suffer from conspiracism, the
mental state of seeing conspiracies everywhere. Given the state of the world today, that
might not be such a bad idea. But many do disapprove of such an outlook.
Conspirati: A home-grown term similar to literati. It refers to a growing Internet-based
and conspiratorially-oriented intellectual elite.
Devolution of electoral control: The closer to the local body politic that decisions are
made, the better. In fact, at a fundamental level, conflicts of all sorts have been resolved,
historically, by private means. The current system is not destiny; it is driven, instead, by
the visible global power elite money power. Those societies that exhibit the strongest
civil respect for intimate communal preferences are those in which investments may best
be placed with the most reasonable expectation of success. One should not, therefore,
expect too much of the European Union, which is moving in exactly the wrong direction.
The regional agglomerations in the Americas, if they progress further, past managed trade
and into governance, will surely exhibit similar dysfunction.
Dominant social themes: Notions launched by the power elite that grow into archetypes
after much repetition. They are issued from the domiciles of the elites global architecture,
the United Nations, World Bank, World Trade Organization, World Health Organization, etc.,
and are picked up and trumpeted by various forms of the mainstream media. Usually
motivated by fear (global warming, etc.), these themes are eventually addressed by
solutions controlled by the same elite that generated the initial theme and facilitated its
promotion.
Free market: A system of voluntary commerce (trading). Government rules and laws,
whether worthy or not, must be seen within the parameters of economic literacy as a
marketplace distortion, creating scarcity, queues, or both.
Free-market thinkers: These individuals seek to implement the above definition as a
basis for an improved, freer social order. Free-market thinkers are financially literate
and unafraid to face the realities of the world around them. They have been selfactualized by their independent studies of the market and how humans relate to each
other within the ambit of private and public commerce. They seek to make the most of
their abilities and talents within a realistic framework, rather than a money-power
promotional meme.

< 12 >

Free-market economics: Its history is in part the history of what is called Austrian
economics. The Austrian school is fairly modern neo-classical as opposed to classical.
Many economists who promoted this sort of economics were Austrian thus the name.
Ludwig von Mises was the Austrians prime 20th century exponent. Perhaps his greatest
work, Human Action, shows clearly that people can and do take action to remold
economic circumstances and better their lots in life. Such perspectives invalidate the
logic of central planning and of the modern sophistries of Western law in general, which
tend to assume that trends are static and human behavior inelastic and unadaptive. For
this reason, among others, von Mises never received wide circulation in America during
the 20th century. It is only thanks to a stubborn few, aided now by the Internet, that his
thought, and that of the Austrian free-market school itself, is becoming better known.
Intimate communal preferences: These are charitable, caring activities toward which
humans may be seen to have a genetic predisposition (neolithic tribal entities supported
both private property and survival most efficiently) in extended familial and community
configurations. Contrast this to impersonal communal preferences, which humans
exhibit in larger groups (tribes battling over scarce resources, also a survival trait)
aggression, hostility, warlike behaviors. Those crafting current sociopolitical and economic
configurations ignore these predispositions at their own and societys risk.
Laissez-faire: French for let it be, this concept advocates free, or fairly free, markets.
VESTS: Visible Elite Super Tendencies Strategy (VESTS) brings together the business cycle,
observation of the power elites regional and generational money flows and the
immutable reality of free-market economics to predict investment opportunities in
regions, securities and commodities. VESTS is not a formal system. Its practitioners
would tend to be free-market thinkers.
Self-actualization: A term used by the psychologist Abraham H. Maslow to describe the
instinctual need of humans to make the most of their unique abilities and be the best
they can be. Maslow believed that only 2% of the population had the internal resources
and intelligence to become self-actualized, and he referred to these individuals as two
percenters. Today, there is an emerging subset of two percenters who are known, for
purposes of this book, as free-market thinkers.
Soft and hard hyperinflation: Orthodox economics defines inflation as rising prices
but free-market economists of the Austrian school believe rising prices are just a
symptom, and that inflation is caused by a controlled or uncontrolled expansion of the
money supply beyond what the economy can absorb. Although there is no generallyaccepted view in the mainstream literature concerning when inflation becomes
hyper, in his classic analysis Philip Cagan puts the cut-off at a monthly inflation rate of

< 13 >

50%. The American dollar is certainly not at that point yet. However, even considerably
less than a monthly rate of 50% would be difficult if not intolerable for most Americans
thus the term soft hyperinflation. Central bankers inevitably err on the side of
producing too much rather than too little money and credit. The overabundance of
money, while dangerous of itself, becomes known to the general public as inflation
when its presence is recognized by those who use it. Once the public believes that its
money is losing value, a whole host of behaviors are manifested. People spend quickly
rather than save and currency thus afflicted may not hold value from one day to the
next. It also is the premise of this book, increasingly shared by the alternative Net media
if not the mainstream, that the business cycle, which includes constant stimulation of
the money supply, has entered a period where inflationary forces may do great damage.
The ability of the worlds and Americas central bankers to control inflation is limited by
the recessionary impact of rate increases. It is possible, if not probable, that the amount
of dollars unlocked from institutional coffers and flooding the worlds currency markets
(and the dollar is currently the worlds anchor currency) will so greatly exceed what is
necessary that the result will be hyperinflation, soft or hard.
Power elite (visible) (AKA modern money power): The visible power elite has elicited few
scholarly analyses in the modern day. In times gone by, this group went by the collective
name money power. (This nomenclature has been resurrected for High Alert.) There
are various theories as to the composition of the power elite, its operative principles and
goals. This book advances one hypothesis that has been the subject of academic analysis
and mainstream media profiles, but does not rule out the veracity of other, more
complex, ancient and epochal speculations involving the invisible elite. While there is no
direct evidence, for the most part, for the invisible elite, its presence is manifest on the
Net where whole sites of great complexity are devoted to such elusive groups as the
Illuminati, the black church, the black nobility, etc. It is not necessary for the
purposes of this book to establish the veracity of any of these, even were it feasible, as
what is visible modern money power suffices; what is invisible is subject to more
than enough scrutiny from the increasing conspirati.
Thesis versus antithesis: Known either as an outstanding way to develop new
propositions or a nefarious one. It is attributed to philosopher Georg Wilhelm Friedrich
Hegel, though he in turn apparently attributed the concept, or at least the phrase, to
philosopher Immanuel Kant. According to Wikipedia, The idea was subsequently
extended and adopted by [the fathers of communism] Karl Marx and Friedrich Engels.
It is the involvement of the latter two that render conspirati suspicious. Many see it as
methodology of social manipulation, as follows: First a thesis is presented, then an
opposing point of view, an antithesis, and finally the conflict is resolved by synthesis.
Inevitably, the synthesis lies between thesis and antithesis. Thus, by controlling the
statement or thesis, the placement of the synthesis can be predicted. A democratic state
may move in fits and starts, for instance, toward gun control via this programmatic

< 14 >

strategy. One candidate endorses the common-law sociopolitical position that no gun
control is the ideal, while the other postulates the antithesis, that full gun control is
necessary. The predictable synthesis some gun control is good will fall in between.
During the next election, one candidate may take the position that partial gun control is
good while the other candidate may present the unchangeable antithesis, that full gun
control is best. The synthesis will again resolve itself more closely to the latter position.
In this way, in a single lifetime, a democratic republic, especially one constructed along
the lines of a two-party system, may move from republican principles to socialist ones.

< 15 >

P R E FA C E C O N T E N T A N D T H E M E S

High Alert is a personal investment book dealing with the worlds

ongoing, deepening financial crisis. Its thesis is as follows: A visible power elite,
challenged by the Internet, causes increased problems for the global economy
while struggling to implement its agenda. Throughout, the narrative elaborates
on this and offers economic action points.
Each chapter is written as a self-contained unit, featuring a particular
money-power problem. But the chapters are also placed in a historical narrative so
that, taken together, the reader is exposed to the visible power elites history and
how it is battling the Internet to save century-old internationalist plans. The last
chapters of the book propose a non-traditional and intuitive investment solution
to power elite-generated economic problems.
In aggregate, the visible global power elite possesses a considerable
amount of the worlds wealth and resources, and controls a good deal more. This
elite is actively involved in financial manipulations on a vast scale through the
creation of dominant social themes. The themes selected are picked up and
repeated within the power elites vast echo chamber of globalist enterprises. Their
veracity is attested to by prominent think tanks; their scientific validity is
confirmed (often fallaciously) by power elite-controlled journals. Their
presentation is abetted by the mainstream media and Hollywood. Their
inevitability is attested to by their appearance in school textbooks. The themes
themselves have kernels of truth, surrounded by layers of mushy exaggeration
and outright prevarication intended to intimidate people into doing something
with their money that will be either unnecessary or unwise but which will

< 16 >

provide a profit for those involved in the promotions.

High Alert suggests certain defensive strategies based on a free-market
analysis of the business cycle, the moves of money power itself and the inevitable
reaction of the marketplace. Fooling oneself into believing economic laws have
been suspended just for this decade is perhaps comforting but ultimately
not effective and even self-destructive.
Before waving about the label conspiracy writer, please note that
modern money power actively announces its intentions via conferences,
workshops and white papers. Its leadership serves continuously in administrations in both America and Europe. The positions of its white papers and journals
are, in many cases, implemented as policy. True, the power elite does not explain
the mechanism of its promotional scheme. But the mechanism its buildings
and acronyms is proudly on display. And its supposed humanitarian rationale
is mostly lauded, even if it works poorly, or not at all.
For the body of its argument, High Alert sticks to the visible power
elite, the one that has made its presence known and its intentions fairly obvious.
Follow what the visible power elite says and does, bearing in mind the reality of
economic fundamentals, and the ramifications of economic trends will become
clear as well. Also, hopefully, the possibility for increased personal financial
success.
Conflict With the Net
How do we track modern money power? We live in a high-tech era, and
increasingly the Internet is giving more and more people information about the
visible power elites sociopolitical and economic strategies.
The concept of the visible power elite was worked out before the Internet.
At the time, there was no harm in revealing oneself, ones plans and actions,
because few could understand the totality of what was going on, and those who
could were not usually in any position to explain to others. The Internet has
changed that.
High Alert has been written with this in mind, to help readers take
advantage of the Internets interaction with the visible power elite and to apply
sound, free-market principles and economic laws to the trends they isolate.
Much will be found, as we enter this process, that is not good practice.
Suggestions will be made to create a safer portfolio and a more effective asset
allocation. These are necessary, given the business cycle, the increasing agitation of
the power elite and the extended run of the Wests latest paper money regime,
which is nearing its end.

< 17 >

Power Elite, Personal Responsibility and profit

Government-backed paper money, bureaucratic overspending,
inevitable business-cycle difficulties caused by too much money and credit
the Wests economy, especially Americas, is seemingly set up to sink. At worst, such
an irresponsible monetary system can end in either a soft or hard hyperinflation, or
a hard landing a euphemism for murderously high credit, joblessness, bank
failures, pension and private bankruptcy and even more corrupt government
meddling in the market. At best, we get a soft landing where joblessness climbs
gradually, inflation is driven up steadily but not at a hyperinflationary rate. We grow
poorer by degrees rather than all at once. Grimmer possibilities, long-term:
stagflation, full-scale hyperinflation, depression.
For some, the idea of first acknowledging a visible power elite, and then


visible power elite

reality

invisible power elite

tipping

point

controversy

High Alertdeals with the manipulations and promotions of the visible global power elite
(money power). From an investment standpoint, analyzing an obvious open conspiracy
is far easier than trying to guess at the actions of, say, an invisible Illuminati. The visible
power elite maintains a presence on the Net. Its methodology is clear; little or no
guesswork is involved. Any controversy is avoided or, at least, minimized. The most cogent
argument that can be mustered against the sociopolitical and economic influence of a
visible power elite is that there is no direct mechanism for control. However, open-minded
analysis will likely grant that the visible power elite utilizes the public sector to work its will
and funds the aggressive growth of the public sector via central banking. This is one
reason why, in the 20th century, public sectors throughout the West expanded
rapidly, and why an international public sector (the U.N., etc.) came into being. Public
sector employees are apt to enforce regulations almost without question, their
salaries being dependent on government. The combination of money power and an
expansive public sector explains not only the aggressive growth of bureaucracy in the
last 100 years but also why failed policies, nonsensical laws and even military
adventurism continue to be implemented when logically such destructive activities
would have been abandoned almost upon inception, or not entertained to begin with.

< 18 >

seeking to analyze its workings with an eye toward generating a viable investment
strategy, is overly utilitarian. The implied absence of a moral stance is disturbing. In
fact, this is not the case. If the presence of modern money power is acknowledged,
then an argument may be made that it is something of a moral imperative for
readers to use this information to secure their futures, and their families futures.
More and more information on the Net suggests ways that individuals can
take action to either frustrate or rationalize the power elites activities. In this book,
via the VESTS strategy, readers will be given the tools necessary to analyze and react
to power elite promotions. Forewarned is forearmed.
Mirrors are helpful! Read this book and then stand in front of one. You are
responsible for making your way in this world. No one else, not your family, not
your parents and certainly not the strangers who run the government or stand
behind the government. You may believe deep down that you know Hillary or
feel like an FOB (friend of Bill) or are sympathetic to George Bush and the
challenges he seems to be facing but this is not quite the case. You are probably
reacting to a series of carefully crafted public personas that have nothing to do
with the reality of the power elites manipulations of the sociopolitical and
economic process.
At the back of this book are sources that utilize the information contained
in High Alert. Also helpful is the FMNN site itself, which containes up-to-theminute news and information focusing on the visible power elite, the drive toward
globalism, and appropriate wealth solutions via the VESTS investment approach.
The power elite tends to operate through the use of dominant social themes
generating either fear or greed. While much of this manipulation is out of our
control, as is the market reaction, the investor who has read High Alert can put the
information to good use and possibly make huge profits as a result. The
information and systems described herein are not merely defensive, and the reader
may find himself or herself struggling as much with the moral component of the
process as its investment application. Is it moral to generate wealth by tracking
money-power strategies? Each reader will have to come to his or her own
conclusion on the subject. High Alert describes the process and offers readers the
theoretical framework necessary to defend their portfolios and even, over time, to
generate great wealth. The implementation, obviously, is up to each individual.
Idiosyncratic Investments, Historical Precedent
High Alert is an idiosyncratic investment book. It does not seek to cover
the waterfront when it comes to offering specific investment options. Many
Money magazine-type suggestions focus on minor business-cycle reconfigura-

< 19 >

tions, recommending inflation-adjusted savings bonds for instance as a way to

combat portfolio erosion. But such instruments are provided by government
authority and can be removed, or watered-down by the same legislative process.
High Alert does offer a specific investment strategy VESTS though
it is surely not a mainstream one. Overlay business-cycle allocation with a strategy
focused on the financial placements of the global power elite. Then conduct a freemarket analysis of the elites overall promotional effort, and you may be able to
come out ahead, even in the face of gale-force economic headwinds.
The best investments, especially at this point in the business cycle, are
probably those featuring honest money gold and silver in some form. Gold
and silver, if held physically, are anonymous wealth-generators over time, and
High Alert presents the history and explains the value of such money metals.
High Alerts thesis, previously presented, is that a visible power elite, challenged by
the Internet, causes increased problems for the global economy while struggling to
implement its agenda. This does not mean that the Internet and its information
flows are about to overwhelm the visible global power elite; only that the increased
amount of information is detrimental to its promotions and destructive to its
message. There is certainly a possibility that the Internet will introduce an Age of
Connectivity and increased freedom and free markets that will supersede
what High Alert calls the 20th centurys Age of Promotion. Time will tell.
Certain subspecies of newsletters encourage readers to follow the asset
allocations of the wealthy. In some cases, this sort of advice makes sense, as when Bill
Gates, Warren Buffet and George Soros all bought either silver or large positions in
mature silver companies, only to see the price of silver triple in the 2000s.
On the whole, sleuthing to find where the individual rich are invested is a
kind of monetary dysfunction akin to peering in a window to catch a glimpse of a
glamorous party.
What is being proposed within these pages is neither fashionable nor facile.
Modern money power has a specific agenda that can be isolated and analyzed. Once
it is understood, free-market principles can be utilized to determine what parts of
a specific strategy or manipulation will stand, and also what will fall. This advance
knowledge can be seen as money in your pocket if properly applied.
While High Alert deals mostly with U.S. markets, much of what is
mentioned in this book is theoretically applicable across a broad range of
sociopolitical and economic regimes. These areas include Europe, South America,
etc. The places where the books message might not fully apply are mainly in Third
World countries and, curiously, China, which has not yet been entirely swallowed by
the current system. China, unfortunately for the Chinese, is probably the next
course on the menu.

< 20 >

Modern Gutenberg Press

High Alert argues that the Internet is at least partially comparable to the
Gutenberg press. With the advent of the Gutenberg press, mass literacy became
possible and people could read the texts around which their lives had been
structured chiefly, or at least especially, the Bible. The resulting revelations
reconfigured the social structure, led to the Reformation and ultimately the
migration to the New World and the founding of the American republic. The
increasing understanding of the unfairness of the current structure, as well as its
reoccurring accidents and inherent instability, have been driven by this wonderful
communications network, one arguably comparable to the Gutenberg press 500
years ago.
Detractors will note otherwise, of course. History yields to numerous interpretations and few emphasize the Gutenberg presss role as much as High Alert.
Certainly, the presss effect was accompanied and reinforced by numerous
other factors. These include the Black Death, the advance of the Turks into the West,
the Venetian strategies to foment war in Europe based on the expanding religious
furor; even the creative destruction of the Renaissance itself. Yet, it was the presss
efficiency that allowed people to read the Bible for the first time and come to their
own conclusions about the corruption of the Roman Catholic Church, which in turn
helped undercut social acceptance of the church-sanctioned divinity of kings.
The power of the Gutenberg press is manifest within the historical record.
The circumstances surrounding it war, politics and plague are those that
mainstream historians might wish to scrutinize again, given the presence and
nature of the Internet.
Difficulty the Net Causes the Power Elite
And What We dont Know ...
Is the Internet already having an impact on the power elite? These days,
some of its goals seem further from realization, rather than closer. The current U.S.
administration forced through the Central American Free-Trade Agreement (CAFTA)
only with the greatest difficulty. The 9/11 attack, which has served as a trigger for the
kinds of regulations the elite uses to realize its strategies, continues to raise up
unpleasant questions about culpability that goes beyond Middle East terrorists.
The administrations hate-crime legislation that would attack the freedom of the
Internet never made it out of Congress (to this point anyway). Such setbacks do not
bode well for globalist priorities, at least not as they are currently organized. The
epoch of the Internet would try any secretive, globalists patience. Type in the word

< 21 >

Bilderberg and almost two million cites come up on Google alone.

The global chaos that may be brought on by the dollar dilemma and the
activities of the Anglosphere, especially the Bush administration, remains a
possibility and poses tremendous challenges. Meanwhile, the Age of Promotion, as it
has been described in this book whether you agree with it or not explains the
monetary incentives behind the expanding global infrastructure. A more generalized
awareness may provide the trigger that begins at least a partial unravelling of the nonessential sociopolitical and economic regulatory bureaucracy of the 20th century.
Given human nature, the idea of a rigidly controlled supra-national
conspiracy overseen by a single individual and his lieutenants, might be
considered simplistic. Likewise, the idea that has taken hold (with some
justification) that a single individual or a tight group of plotters, has in mind to
wipe out billions for whatever reason. One can spend years investigating such
hypotheses and come away without definitive answers.
High Alert has been written from a theoretical point of view. Certain
sections provide detail to flesh out the argument, but the end result is still the
same: Either readers (especially free-market thinkers belonging to a larger group of
two percenters) will perceive that the world-view of this book provides a template
for a viable sociopolitical and economic perspective or they will not. High Alert
presents patterns that seem increasingly obvious and argues emphatically for their
viability, but each reader will make up his or her mind on the matter.
As an author, educator and financier, I am aware of the consequences of
sounding the alarm about a perceived financial crisis. However, having founded an
Internet-based news network that boasts some of the worlds leading free-market,
social, political and economic thinkers, and having been privileged to spend
numerous enlightening hours conversing about the topics presented in this book
with most of them, my pronouncements are made with good conscience and due
diligence.
Criticism is the lot of anyone who attempts to make a difference in public
discourse. At this point I am used to it and expect it. I hope you enjoy this book and
find its wealth-preservation and enhancement strategies useful. It is my wish that
free-market thinking becomes a model you employ in all aspects of your
decision-making process.

Chapter Summaries
High Alert is an investment book that bluntly confronts todays economic
realities. In no way is it intended to endorse the power elite. However, if one is to

< 22 >

Sidebar Explanations

High Alert is a personal investment book dealing with the visible power elite, the
economic problems that its drive toward internationalism is causing and wealthsolutions that readers can implement to protect themselves and their families. Thanks
to the Internet, visible money-power organizations such as the Bilderbergs, the Fabians
and the Council on Foreign Relations regularly provide evidence as to their intentions
and confirm their status. The decision was made early on that High Alert would not
attempt to speculate about powerful, secretive groups such as the Illuminati
organizations which, if they do exist, leave little or no trace of their existence.
Conspirati: Those involved in research of what High Alert calls the invisible power
elite receive the label conspirati in this book. Some conspirati speculations are
difficult to take seriously. However, a number of the conspirati are seemingly people
integrity doing serious work, some of which may eventually be accepted by the
mainstream in this Era of Connectivity. Since their speculations and conclusions
provide an additional, if sometimes doubtful, frame of reference for the visible power
elite, High Alert includes provocative conspirati conclusions along with decorative
question marks.
Reality/Alternative Reality Byte: In addition to conspirati sidebars, High Alert
includes factual and opinion-oriented sidebars. These are intended to shed light on the
books thesis of the struggle between the power elite and the Internet and the
resultant fallout.
Elite Retreat: A main part of High Alerts thesis about the visible power elite is that
its globalist focus is being implemented faster than ever because of fear about what the
Internet is revealing. Each chapter features a sidebar box that points out a difficulty or
retreat of modern money power before the Internets seeming informative might.
History shows the difficulty the power elite of the time had confronting the Gutenberg
press. Is history repeating itself? Possibly so.


survive, let alone thrive, in the current environment, then it is necessary to
understand emergent, and increasingly complex, economic realities. There is much
reported on the Internet and much more forthcoming. High Alert attempts to
summarize what we know now, and how we may best use that knowledge to protect
ourselves and our families.
Chapter 1 of High Alert deals specifically with the financial hurricane
expanding in America. Many may be fooled by mainstream media into believing
certain events are taking place that are not during this phase of the business cycle.
Others that are occurring will be discounted. A thorough read of High Alert will

< 23 >

preclude these possibilities and educate the accepting reader as to what is actually
occurring sociopolitically and economically.
Chapter 2 deals with the inflationary perhaps hyperinflationary eye
of the onrushing economic hurricane. Inflation is caused when a governmentbacked fiat-money system generates too much money and credit. The overhang of
money and credit washing through the system now threatens to devalue savings,
ruin companies, wipe out jobs, render mortgages unstable and evolve into a soft or
hard hyperinflation if not handled properly.
Chapter 3 focuses on defining the power elite in order to better
understand what it is and how it interacts, influences and takes charge of
economies and monetary policies around the world. The analysis of this visible
or global power elite is not undertaken merely to expose the influential among
us, but to lay the groundwork for the implementation of a clear, yet almost
entirely unused, strategic investment approach. Free-market thinking
economic literacy can help individuals stay afloat in this time of turmoil, and
help investors protect their portfolios.
Chapter 4 extends the books analysis of money power. It shows how war
is part of the toolkit that the elite uses to maintain control, expand influence and
generate vast wealth. The so-called Third World is mostly the target of the power
elite, but its depredations, and the system itself, inevitably has an impact on the
West, in Europe and, today, strikingly, in America.
Chapter 5 explains the history of money and how the banking industry
run by the power elite gradually took over the coinage and distribution of
money on behalf of the government. The symbiotic relationship between the
inefficient command-and-control structures of even the most democratic
government and those who supply its funding is responsible for a good deal of the
sociopolitical and economic chaos the West faces today.
Chapters 6, 7 and 8 deal with the power elites historical penetration in
Europe and America. Chapter 6 focuses on how modern money power has distorted
economies or, in the case of the European Union, created fictitious regional entities
out of quarrelsome nation-states as a stepping stone to a consolidated worldwide
government. Chapter 7 traces the growth of government in America, and the demise
of the republic. Chapter 8 returns to the books banking analysis to focus on the U.S.
Federal Reserve.
Chapters 9 and 10 focus on the effect the Net may be having on the power
elites operations. First, it seems to be making the power elite nervous about its
agenda. Second, it is teaching a broad cross-section of the worlds population, the
so-called two percenters, about the value of free-market thinking including

< 24 >

economic and financial literacy. This is bound to be disturbing to the power elite,
which thrives on ignorance of such matters. The chapters also provide insight into
the VESTS system.
Chapter 11 focuses on the ways that the power elite is striking back at the
Net and its creation of financially literate critics who are attuned to the power elites
money manipulations and use the Internet to spread these views. The power elites
choices involve shutting down or, in some other way, regulating the free flow of
information. Eventually, perhaps, the power elite will have trouble maintaining even
the global network it has already put in place, as it becomes increasingly clear this
network is part of a 20th-century Age of Promotion, and acts as a kind of
megaphone for money-power messages bird flu, peak oil, Islamofascism, etc. As
these messages are disseminated, corporate organs of the power elite go to work to
supply the products that these artificial crises have stimulated. The chapter includes
additional information on VESTS.
Chapter 12 sums up the storm warnings that have appeared at the end of
every chapter and then provides the reader with a summary of the books
economic action alerts. This last full chapter also suggests other ways that freemarket thinkers (two percenters) can structure their assets to capitalize on the
movement of the business cycle rather than be run over by it. The conclusion
restates the books premise and adds some final thoughts.

< 25 >

Reasons for the financial storm upon us.

TH E HURRICAN E ARRIVES
In case you ever wondered what it must have been like when the Roman
Empire fell apart, let it be known youre at the beginning of the end for the United States
as the worlds biggest economic power. America is on the cusp of economic and political
upheaval, unlike anything it has experienced in its entire history! The days of robbing
Peter to pay Paul are coming home to roost.
May 2006, Resource Investor, What a Difference a Week Makes
High Alert
A financial hurricane is washing over America and, to a lesser extent, the entire
West. To label it the downstroke of a super business cycle does not do it justice. These
events occur in cycles, with the last one taking place in the 1970s a mild storm
compared to what is occurring today. Then interest rates rose to almost 20% as the U.S.
Federal Reserve nearly shut the economy down to regain control of the currency.
Who knows what will happen this time? The currency bubble is bigger, and
could grow bigger still if foreign countries begin to dishoard their dollars.
Aggressive inflation could turn into a soft or hard hyperinflation that would spell the
end of the dollars dominance as the worlds anchor currency and very possibly of
the dollar itself.
Central bankers must be careful not to puncture the various speculative
bubbles caused by easy credit too rapidly. If they do, the results could unravel the
housing market and lop billions off the values of the Dow and Nasdaq. The boldest
action the Fed has taken thus far is to do away with its broad-based M3 dollar statistic,
which makes it more difficult to ascertain the expansion of the money supply.

< 26 >

Unfortunately, disguising the problem wont make it go away.

The United States is in line to bear the brunt of the coming economic
dislocation because it has lost its productive republican moorings, and because the
current administration has been especially spendthrift, almost unbelievably so
embarking on a misguided policy of nation building. Now major powers such as China
and Russia are contemplating ways to disentangle their economies from an
increasingly shaky mono-power and its equally suspect currency. For 50 years or
more, countries have purchased dollars in order to buy oil, but all this may be coming
to an end.
Irans leaders, for instance, have signaled that they are willing to de-emphasize
the dollars role as the worlds anchor currency and exchange oil for other currencies
or even precious metals. Some have maintained, especially in the alternative Net press,
that the United States went to war with Iraq over Saddam Husseins stated intention to
do the same. They speak of it in both Asia and South America. It is only the American
people themselves who have not been informed by their major media that the dollar is
ceasing to be the worlds foundational currency.
When will China and other countries tire of holding American dollars in the form
of Treasuries and seek to repatriate them? How many more times will China be denied
the ability to spend some of their billions of dollars on real assets in the United States or
Canada before its bankers stop showing up at the U.S. Treasury auctions? The fallout from
Amercas largest creditor actually starting to get rid of dollars would mean economic
chaos. An outflow of dollars could not come at a worse time, as the Fed has to print a great
deal more money and offer even more credit to keep up with ongoing deficit spending.
A solution to monetary oversupply exists, one that can protect the big
institutions and modest personal portfolios: the purchase and retention of money
metals. Commodities, especially gold and silver, tend to keep their value or appreciate
in times of financial crisis. Even as stock market investments in ordinary portfolios
spiral down, money metals rise. This happened in the late 1970s when gold rose to an
inflation-adjusted $1,500 an ounce and silver to $100. Today, hundreds of millions of
buyers around the world value these money metals more than ever. Many of these
individuals wear their wealth directly on their persons as fine jewelry, or secure it in
some fashion, in a vault, private bank or even underground.
During an inflationary currency crisis, peoples confidence in paper money
erodes. Such hyperinflationary episodes have taken place before. China, during its days
as a great, expansionist empire saw perhaps six of them or more. The Austrians and
Germans had their nationsproductivity drained by the very same mechanism not 100
years ago. Early in the 20th century, Austrians carted wheelbarrows full of paper bills to
the grocery just to buy a loaf of bread, and the value of paper money was equal to that

< 27 >

of firewood in the end. The majority of seniors living in those countries at that time
lost everything overnight. The middle and upper-middle class were reduced to
rumaging through garbage cans, just to feed their families.
Fundamentals of the Financial Hurricane
A strong inflation, even a soft hyperinflation, already has a grip on Western
currencies, most notably in the United States as anyone who buys groceries is aware.
The dollars plunge may be delayed by a kind of race to the bottom as other central
banks adjust their currencies to reflect the weakness of the dollar. But if central banks,
including the Federal Reserve, are able by some chance to stem hyperinflation, they
and the bankers behind them will only do so by making a great deal of credit available
to the very wealthy and by expanding government welfare and workfare programs, as
well. The result will still involve a great deal of inflation, plus an ever-larger government
sector, more income disparity, increased joblessness and a disproportionate
weakening of the private sector.
Those on fixed incomes will have a difficult time reacting. That includes many
of societys elderly. The 1970s the Jimmy Carter years of 20% interest rates were
merely a precursor. In his Great American Depression, free-market economist
Murray Rothbard explains the ramifications of hyperinflation as follows:
Hyperinflation, on any count, is far worse than any depression: It destroys the
currency the lifeblood of the economy; it ruins and shatters the middle class and all
fixed income groups; it wreaks havoc unbounded. And furthermore it leads finally to
unemployment and lower living standards since there is little point in working when
earned income depreciates by the hour.
Technologies such as the Internet can make a difference in terms of letting
people know what is really going on. The power elites Great Game has been played out
for many centuries, but not for several generations has it been so exposed. The Internet
has acted as a huge magnifier. One of the reasons, it can be speculated, for President
George W. Bushs often-miserable ratings in his second term of office is because too
many people are viewing a kind of machina ex deus courtesy of the Internet that
was never visible before. And they do not like what they see.
President Bushs behavior has been reckless. There is no other way to describe
it. Threatening Iran with an imminent nuclear attack is not out of character for this
administration. But the real impact may be seen in the damage to the domestic
economy. The balance of trade is worse than ever. The dollar has moved down
markedly especially against gold and silver, but also against numerous currencies.
Most of the monetary flexibility that could have counteracted the current situation is
not available.

< 28 >

R ea l i t y B y t e : F e d M o n e y-M ea s u r e m e n t s
M1 includes physical monies such as coins and currency. Also includes demand deposits
(checking accounts) and NOW accounts (interest-earning bank accounts within which the
client may write drafts against deposited monies). Another synonym for M1 is narrow
money because the M1 category is considered to be the narrowest idea of money.
M2 includes all M1 categories, time-related deposits (such as CDs), savings deposits and
non-institutional money market funds. Economists use the M2 category to not only
quantify the amount of physical money in circulation, but also to try explaining various
economic monetary conditions.
M3 includes all M1 and M2 categories along with large time deposits (such as lengthy
CD terms), institutional money market funds, short-term repurchase agreements
(short-term borrowing agreement for government securities dealers) and other large
liquid assets.
Source: From the Wilderness, paraphrased from Investopedia.com.


Financial Instability Worse Than Ever
We have had nearly a full century of internationalism in all areas of the Wests
economy. Yet, global financial instability regularly worsens and living standards
around the world Asia, Argentina, etc. fluctuate with alarming regularity.
Whatever promises have been made by the wise men running our global institutions,
they are not working. We cannot count on them.
Lacking such flexibility, Federal Reserve officials have seemingly resorted to
hiding the inflationary countermeasures on which they must embark. In announcing
that the Fed would no longer report one dollar-circulation statistic M3 officials
were telegraphing a solution already evident to most. Heres what MSN Moneys Jim
Jubak had to say:
I'm not generally a believer in Federal Reserve conspiracy
theories. But in this instance, the conspiracy theorists make an
intriguing point. The Federal Reserve decided to kill off M3, they argue,
because it is the measure that shows the fastest growth in the money
supply. For the 12-month period that ended in February 2006, for
example, M3 grew at annual rate of 8%, but M1 grew by just 0.4% and

< 29 >

M2 by 4.7%. Certainly, getting rid of M3 makes it harder to argue that

the short-term inflation fighters at the Federal Reserve are actually
very soft on long-term inflation. Maybe so soft that you could say they
love long-term inflation.

Inflation and currency debasement causes tremendous monetary

distortions. When the pressure becomes intolerable, the power elite turns to conflict,
or the threat of conflict, to redirect the publics attention away from the systems
financial failure.
The power elite is composed of a fairly small group of inter-related wealthy
families along with leaders of corporate, banking, charitable and even religious
institutions. Thanks mainly to the Internet, the amount of information about the
power elite is growing every day. But even before the creation of the Web, many of the
individuals and organizations referred to in these pages had been well-documented in
magazines and books.
Not only does the power elite exist, it publishes (some of) its intentions openly
and proclaims (many of) its actions clearly. The avowed goal certainly not the only
one is to wipe out war, poverty and the other afflictions of humankind. Their
methodology includes the creation of what has been called global governanceor The
New World Order.
FMNN commentator Ron Paul (R-Texas) has written extensively on globalism
and its internationalist institutions. From his point of view, free-trade deals such as the
Central American Free Trade Agreement (CAFTA) are deeply flawed, badly
administrated and have little do with freedom. In a June 2005 Texas Straight Talk
column, he wrote: It is absurd to believe that CAFTA and other trade agreements do
not diminish American sovereignty. When we grant quasi-governmental international
bodies the power to make decisions about American trade rules, we lose sovereignty
plain and simple.


Co n s p i r at i
It is important that you know that the members of the Skull & Bones Order take
an oath that absolves them from any allegiance to any nation or king or
government or constitution, and that includes the negating of any subsequent
oath of allegiance which they may be required to take. [Their other oaths] mean
nothing.
PlausibleFutures.com

< 30 >

Fundamentals Government Overspending

The current bout of out-of-control U.S. federal government spending
began in the 1980s when America assumed its first trillion dollars of debt. Five
years later, the nation added a second trillion, and in 1990, a third trillion. By
2006, the U.S. government had assumed a staggering $10 trillion in debt.
Financial analyst and hard-money guru James Puplava points out that
inflation does not disappear simply because it is being ignored by monetary
authorities. In fact, it only gets worse when it is not confronted. A February 2005
column posted on his Financial Sense Web site includes this warning: During the
latter stages of inflation, money velocity increases because people no longer have
faith in their currency. Money velocity is a direct reflection of the degree of
confidence that people have in their currency. A sharp increase in velocity
normally takes place during the final stages of an inflationary crisis.
America has hollowed out its industrial capacity. Now U.S. corporations
have left the building. They are looking in India, China, Eastern Europe, seeking
skilled and unskilled labor unencumbered by the massive regulatory baggage of
the U.S. labor markets. The dollar has supposedly lost 50% of its purchasing
power in the last two decades as American central bankers have flooded the
world with dollars.
Until recently, mortgage rates were low; credit was easy. Owners and
builders flipped houses, especially in regions such as South Florida and greater
Los Angeles. But how much of this was due to demand and how much due to
inflation? Stories about condos doubling in price in six months and house
trailers suddenly going for $1 million in California were evidence of what High
Alert calls soft hyperinflation.
Obviously, inflation is preferable to soft hyperinflation, as soft
hyperinflation is preferable to full-blown hyperinflation. And while we are not in the
final stages of an inflationary crisis yet, we certainly seem to be headed in the wrong
direction as the prices of money metals climb, and the dollar bumps lower.
Fundamentals The Housing Bubble
In a post on the left wing e-journal Counterpunch, Doomsday
Approaches, Mike Whitney told of selling his house last year in anticipation of
Economic Armageddon in the United States. I sold my home for one reason:
George W. Bush. He and his protg at the Federal Reserve have submerged the
country into a morass of unsustainable debt, disrupted the nations economic
equilibrium and thrust us towards fiscal disaster. Theyve also generated a

< 31 >

humongous housing bubble through their irresponsible and self-serving

manipulation of interest rates.
Whitney believed that the Fed rate hikes would eventually spell doom for the
housing market in this he was not alone making it almost impossible for buyers
to borrow and sellers to sell.
In a November 2005 FMNN post, With Real-Estate, This Time It Really Is
Different, commentator Peter Schiff points out, By insuring increasingly risky
mortgages under the presumption of an implied Federal Government guarantee,
Fannie Mae and Freddie Mac enabled the origination, resale, and securitizations of
mortgages, which otherwise never would have been possible. The moral hazard
inherent in separating lenders from the ultimate holders of the paper results in
the irresponsible extension of mortgage credit, to non-creditworthy borrowers,
on liberal terms and with insufficient collateral, fueling the speculative run-up in
housing prices.
Schiff also wrote a white paper on diversification out of America, which
includes these U.S. statistics:
Personal savings: Down from 12% after-tax to about nothing in two
decades.
Federal budget deficit: $521 billion in 2005, 4.5% of GDP.
Federal debt limit: Pushed to $8.18 trillion as of this writing.
Imports: 50% more than exports.
Borrowing: $2.1 billion per day.
Debt to foreigners: $2 trillion and rising.
Fundamentals Fannie Mae, Freddie Mac, Derivatives
Schiff and others have pointed out that the two largest home mortgage
lenders (both backed by implicit federal government guarantees) Fannie Mae
and Freddie Mac have benefited greatly from the easy money of the 1990s and
the early 2000s, and are at risk for massive defaults in the latter 2000s as rates
rise. In an article, Hedge Fund Monsters? late last year, FMNN commentator David
Chapman had this to say: The prime beneficiary of defaulted mortgages besides
the bank that lent the money could also be Fannie Mae and even Freddie Mac.
The regulator of the giants has [notified] Fannie Mae there could be more
accounting issues. The issues centre on internal control and manipulation of
income and expense.
Both Fannie Mae and Freddie Mac are large derivatives dealers. Issues
have been raised about the accounting of their hedges, but of course derivatives
difficulties extend far beyond Fannie Mae and Freddie Mac. Greg Silberman, a

< 32 >

London City accountant, spelled out the danger inherent in derivatives in a

GoldEagle.com interview. This derivative thing is an absolute monster. It dwarfs
almost everything else in size and impacts on every financial market. The
global, dollar-based economy needs to make a gigantic retrenchment, of that
there is no doubt.
According to hard-money financial observer Krassimir Petrov, Ph.D., the
United States could experience a long-term inflationary cycle of several years
before the inevitable end game. In a late 2004 Net posting, Petrov cautioned,
The intelligent investor is advised to position himself accordingly. Cash and bonds
are obviously good for deflation, but a terrible investment choice in an inflationary
environment. The obvious choices are hard assets, such as precious metals [and]
industrial commodities.
Petrov agrees with Schiff about precious metals with one caveat: Even
though gold is the ultimate choice, I believe that over the next decade, silver will
outperform all investments, whether boom or bust, inflation or deflation; for more
on silver, I refer the reader to the excellent work of Dave Morgan and Ted Butler.
The David Morgan of which Petrov writes is the editor of the Morgan Report, and a
long-time FMNN commentator. Morgan, along with several others, began to
preach the virtues of precious metals early in the 2000s, sensing the trends that
have now come into play. His writing and analysis are acknowledged in the
industry as having helped set the stage for the first round of positive revisionist
thinking about silver and its value. Arguably, the early-in analysis of Morgan
perhaps before anyone else attracted free-market thinkers such as superstar
investors Warren Buffet, George Soros and Microsoft founder Bill Gates to the
white metal.
Another FMNN commentator who wrote about the precious metals surgeto-come is recently-deceased FMNN president and two-time libertarian candidate
for president of the United States, Harry Browne. Browne was a best-selling author
of hard-money investing and independent lifestyle books in the 1970s. The
following excerpt is taken from one of these books and depicts the monetary
chaos that was in fact a hallmark of that decade, You Can Profit from a Monetary
Crisis. Much of the analysis is similar to that in this book and to the analysis of
other books and articles about the profligate and unfortunate monetary system
the West has adopted. The difference is Browne was first.
Today, the U.S. government is running out of time. The
inflationary cycle has reached the point where it doesnt respond to
fine tuning anymore. The elaborate structures the government is

< 33 >

trying to protect are becoming more and more vulnerable to the

slightest mistakes. Much has been said about how close the United
States came to a banking panic and a stock market crash in 1970. These
incidents have often been cited as proof that the crashes and panics
can be avoided. To me, theyre proof that the system is so shaky that it
was saved in each case only by the best luck imaginable. I dont wish to
be dependent upon such a vulnerable system. Were obviously getting
very close to the depression thats been in the works for thirty years
now. When it will begin, if it hasnt already, no one can say. But the
drop of the dollar, the flight to gold and silver, disasters like Penn
Central, Lockheed, the credit crunches of 1970 and 1973 indicate that it
cant be far off.
In addition, the government is flirting dangerously with runaway
inflation. The built-in spending programs of the government mean
that theres practically no chance of budget reductions, deflation, or
even a let-up in the constant expansion of inflation. Further, the U.S.
dollar is no longer backed by any precious metal. The government
refuses to pay out gold to anyone in exchange for dollars. Of course, if
it did it would quickly lose its small hoard of $10.4 billion since
theres at least eight times that much in dollar claims against the gold
held by nervous central bankers throughout the world. What we have
seen in recent years is just the beginning.
There are millions of economic mistakes the market must
liquidate. The dollar has a long way to go downward before it reaches
a realistic level relative to its gold content. If the mistakes accumulated
so far werent bad enough, consider the fact that the government is
doing nothing to change all this. Quite the contrary, it is talking about
free medical care for everyone, guaranteed annual incomes, more
aid to underdeveloped nations. Things arent getting any better;
theyre continuing to get worse even before the crash comes.


E l i t e R e t r eat
Remember Epicitus, who said, The extreme of any position will ultimately become its
opposite. Greenspan says we don't have inflation yet every chart tells a different
story. A rather strong & evident different story. The position in reality is now the
opposite of what the Fed and the government keeps telling you. Now, whom do you
believe, Greenspan or Epicitus ?
Dinl.net, March 2004

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R ea l i t y B y t e : U. S . O v e r s p e n di n g ( 2 0 0 0 s )
$23 billion on pork. (grants to the Rock and Roll Hall of Fame, bridges to nowhere, etc.)
$20 billion in unspecified overpayments. (2001)
$3.3 billion in overpayments from the Department of Housing and Urban
Developments, over 10% of the departments total budget. (2001)
$100 million on unused Defense Department tickets.
$2 billion to farmers to not farm their land.
$12 billion to $30 billion on farm subsidies to wealthy farmers and agrabusiness.
$60 billion on corporate welfare, versus $43 billion on homeland security.
Millions in unnecessary public works projects from Army Corps of Engineers.
$600 million in food stamp overpayments.
$120 million school lunch overpayments.
$800 million veterans program overpayments.
$1 billion from poor tracking of student loan recipients.
$7 billion owed by Medicare contractors to the federal government.
A White House review of just a sample of the federal budget identified $90 billion
spent on programs deemed that were ineffective, marginally adequate, or operating
under a flawed purpose or design.
The Congressional Budget Office published a Budget Options book identifying
$140 billion in potential spending cuts.
Sources: Heritage Foundation Backgrounder No. 1733, March 10, 2004, also Mises.org.


Storm Warning
The Feds withdrawal of the M3 inflation number from public viewing.
This would seem to be, in part anyway, a reaction to the Internet, and its ability to
spread Fed numbers and generate comment on the Fed (and by extension, U.S.
government) sociopolitical and economic policy. This is a historical first, which
potentially destabilizes an already unstable situation. In this case, the Net acts as
a kind of amplifier of Fed strategy, generating increasingly quick and severe
reactions from those commenting on blogs or gathering in chat rooms. The Fed
reacts in its own way, withdrawing information from the market and rendering
the economy murkier. This increasing lack of transparency in the worlds largest

< 35 >

economy is an astounding retrogression and irresponsible as well.

For reasons pointed out above, the Fed is hopeful that its inflationary
ways will now receive little mainstream coverage. But no matter what the Fed
does, no matter what other central banks do around the world, the inflationary
pressures that have been building up for the past decades will not be denied.
There will be much happy talk, of course, in between bouts of increasing pain. We
have conjured up the endless ranks of our opponents ourselves, printed them,
stamped them In God We Trust and sent them on their way by the billions and
hundreds of billions. And now they return.
When it gets ugly, look for political finger pointing to begin and perhaps
for more real-life military actions to mysteriously present themselves with or without
violent preliminaries. However, the difference between now and yesterday is the
Internet. The Nets all-seeing electronic eye makes it more difficult to draw attention
away from serious sociopolitical and economic issues. Perhaps a bigger war would
suffice but nuclear weapons make this problematic. More regional wars are surely
in the offing, but they may not do the trick.
Economic Action Alert
Keep an open mind as you read this book. The primary action that can be
taken when investigating a new phenomenon or adding to ones knowledge base is to
put aside disbelief. Knowledge is key. Before any moves can be taken, a realistic
appraisal of current events must be generated and maintained. As individual issues
begin to become clear, appropriate action may be considered.

< 36 >

Focus on inflation and hyperinflation.

T H E L O O M I N G I N F L AT I O N A RY E Y E
It is democracy run amok here. We have a fiat currency, produced by excess
creation of credit and debt by the banks which flows to the rich, creating obscene
income disparity, and the attendant woes, one of which is the inflation in prices and
social unrest that is going to consume us in a roaring bonfire.
May 2006, FMNN, Richard Daughty e-economic newsletter
High Alert
We have discussed the preliminaries of the financial hurricane. Having come
on shore, it is gaining momentum, and is striking hard. So that we may better
understand the explosive forces, we will examine, in this chapter, the basics of
inflation and hyperinflation and their sociopolitical and economic impact.
A little inflation has often been defended as necessary to keep the economy
running smoothly a defense that could only be mustered by government
apologists in a government-backed, paper money environment. Truly, there is no
saving grace at all to inflation, certainly not to hyperinflation, which can sap savings
in a single day or, if softer rather than harder, can steal continuously for months or
even years.
Additionally, the velocity of money becomes a factor during an inflationary
or soft hyperinflationary period such as the one we seem to be in. When people feel
secure, they tend to save money and keep it at home or in banks. But when people are
insecure about the value of money, they tend to spend it at ever-faster intervals. The
more money finds its way back into the economy, the less the individual paper scrip
is worth.

< 37 >

Reality Byte:

Weimar Bread-Price History

Berlin, August 11, 1922: One of the comedy-tragedy episodes of the visit of the
Committee of Guarantees to Berlin was the payment by the German
Government of their railway expenses, including their special car, which
waited here six weeks. This was done in 20-mark notes, and it required seven
office boys with huge waste-paper-baskets full of these notes to carry the full
sum from the office down to the railway station.
Lord D'Albernon, 'An Ambassador of Peace'
At the conclusion of World War I, Germany slid into an era of turmoil. When war
broke out in 1914, one German mark was equal to U.S.25 cents. By the end of the
war, the ratio was U.S. 1:18 marks and sliding.
1918: Loaf of Bread History: 0.63 marks. The Weimar Government was conceived
in 1918, and the Allies forced it to concede to the crippling Treaty of Versailles,
including reparations to the victors; Britain and France wanted to rebuild their
nations and needed to repay their loans to the United States. The total figure was
not determined at the time.
January 1921: Loaf of Bread History: 10 marks. The reparations figure arrived in
May 1921: 6.6 billion or 132 billion German marks. Germany was to pay reparations
until 1987. For a while there, it looked as though it was going to make it.
January 1922: Loaf of Bread History: 163 marks. Afraid of a backlash at the polling
booth, taxes were never raised, and never exceeded 35% of expenditure. But
spending was never cut, because reducing services would anger the voters. There
wasn't a mark to spare.


As a republic, America amassed a gigantic industrial base that propelled
the nation and its people to great power and wealth but then also helped
support the political classs adventurism and international military meddling in
the last century. Now a century of income taxes and fiat money have gravely
weakened the fabric of a once vital, laissez-faire society. The capital that America
has lived off as it transformed itself into an empire is nearly exhausted. Industry

< 38 >


February 1922: Loaf of Bread History: 250 marks. Consumers began to realize that
something was amiss and tried to withdraw their bank notes as gold, only to realize
that they weren't allowed. Everything that had hitherto happened continued to
happen, only a lot more prominently.
July 1922: Loaf of Bread History: 3,465 marks. Germany could not afford the
crippling reparations. It was due to pay coal and timber to France that it simply didn't
have Without factories, Germany lost its primary source of trade and income.
September 1923: Loaf of Bread History: 1,500,000 marks. The value of the mark
plummeted. When single mark notes became worthless, the Treasury minted 200
mark coins, then 1,000 cloth notes, then 20,000 mark bonds, and these became
worthless too. By the end of the 1923 hyperinflation, said historian Jonathan
Tennenbaum, the total nominal national debt of Weimar Germany was worth the
equivalent of a few pennies or less.
November 1923: Loaf of Bread History: 200,000,000,000 marks. Menus in
restaurants bore no prices because the currency fluctuated so rapidly that a meal
could triple in value between ordering it and paying for it. A clergyman came to
Berlin from a suburb with his monthly salary to buy a pair of shoes for his baby;
he could only buy a cup of coffee.
1924: Loaf of Bread History: 0.5 Rentenmarks. Gustav Stresemann became the
Chancellor of Germany in 1924. He re-evaluated the German currency by abolishing
the mark and introducing a new currency known as the Rentenmark; one Rentenmark
was worth 1,000,000,000,000 marks. He stopped mass currency production and
encouraged foreign investment.

Abridged from www.Answers.com

has been shuttered by high taxes. Jobs have been inflated away. Technological
ascendancy is decreasing. In perhaps 90 years, the greenback has lost
substantially all of its purchasing power and whatever remains is rapidly being
dissipated as a result of additional profligate wars and massive emergency
mobilizations.

< 39 >

Uncontrolled Expansion
The free-market definition of inflation is a controlled, or uncontrolled,
expansion of the money supply paper money and credit. The most difficult
idea for many investors to comprehend is that the government and central
banking process is behind the booms and busts that afflict modern-day
capitalism.
The famous Austrian economist Ludwig von Mises was perhaps the first
to propound the theory that government monetary policy was responsible for
the boom-bust cycle of Western-style economies. Von Mises and his disciple
Friedrich A. Hayek held that without such government intervention, capitalism
would be subject to so-called fluctuations caused by entrepreneurial activity, but
that great inflations and depressions would be mitigated or even dissipated.
This free-market view is, unfortunately, still controversial. And in the
past it is certainly not one that has served as a fulcrum of economic thought.
Economists and pseudo-economists have maintained that capitalism gave rise
inevitably to booms and busts and that it was the job of the state to alleviate
them. Karl Marxs ideas were perhaps the most radical response to the boom-bust
view of capitalism while John Maynard Keyness less extreme solutions gained
credence, sadly, in the West throughout the mid- and late-20th century.
According to Austrian theory, most everything that governments do to
allay recessions has the reverse effect, making matters worse. The Great
Depression is only the most extreme example. Still, knowledge is power. Investors
who understand how central banking policies and government wage and welfare
policies stimulate and exacerbate the business cycle may be able to predict for
themselves in at least a general way in which direction interest rates are
headed and how severe a given recession may be.
Inflation surfaces only as the public becomes aware there is too much
money circulating and changes behaviors. Instead of saving money, a public
aware of inflation spends it. Instead of valuing the currency, the public is
suspicious of it. Remember, inflation is not the reason that the economy breaks
down; it is only a symptom of what causes it cheating the public by
counterfeiting currency and artificially increasing the money supply as a means
of stealing the publics wealth. A currency crisis results from an increase in the
publics consciousness of the fraud.
No Forgiving Grace
There is no forgiving grace to hyperinflation it is always, everywhere,
regarded as destructive. It effectively wipes out the purchasing power of savings held
as paper assets of the country afflicted with it, distorts the economy in favor of

< 40 >

extreme consumption and hoarding of real assets causes the monetary base,
whether specie or hard currency to flee the country and makes the afflicted area
anathema to investment. Despite these dreadful results, society continues to face
episodes of inflation and hyperinflation. It is part of fiat moneys life cycle.
The root causes of hyperinflation have to do with the point in time when the

1923 bank-notes provided by Frankfurt-based gold analyst Oliver Frank.


< 41 >

Alternative Reality Byte: Optimistic View

There is of course another side an argument to be made, for instance, for a certain
kind of balance of power that portrays a less grim monetary scenario than the one
presented extensively in these pages.
Dollar: The Fed can always bring the dollar up by raising rates and printing fewer dollars.
Meanwhile, a lower dollar makes it easier for manufacturers to sell abroad. Outside of an
attack on American soil, not much can genuinely damage the dollar, as it remains a flightto-quality currency. When America invaded Iraq, the dollar strengthened. If the United
States were to bomb Iran, the dollar would likely strengthen again.
Deflation: If there were an economic blow-off of any size, its impact would not be long
lasting. Japans stubborn, 20-year deflation probably cannot happen in America. The
Japanese leadership was always afraid to print enough money to heat up the economy,
even though it was recommended repeatedly. Hierarchical and fixated on control to the
exclusion of almost any other issue, the Japanese power elite would rather have an
economy that limps along and causes pain than an economy that heats up, creates a new
class of wealthy entrepreneurs and upsets a social structure in place for hundreds of years.
Euro: The euro is not worrisome to U.S. policymakers. They welcome it as providing a
more efficient tool to measure balance-of-trade. Also, it cannot provide serious
competition to the U.S. dollar, in their view. First, the euro-zone is not really a country
and therefore reactions to monetary policy by the populace are apt to be less
homogenous than in the United States. Second, citizens in the euro zone are not as
entrepreneurial as Americans and thus eurozone bankers are somewhat restricted in
terms of how high they can drive money creation. Third, eurozone bankers are
inherently cautious about money creation and tend not to take advantage of the
central banks ability to stimulate economic growth. Fourth, individual countries can
still hold currencies outside of the euro. There is a good deal of demand for dollars in
Germany and England.
Gold and silver: The prices of precious metals will advance with those of other
commodities as they did in the 1970s.


increase in money supply, or drop in basic money stock, makes it impossible for a
government to improve its position via ordinary money-printing or credit-granting
means. One reason is that often the alternative to hyperinflation is depression. In late
2001, the Argentine peso collapsed in value. International economists predicted the

< 42 >

country would have to either get a new loan from the IMF and institute shock therapy,
or else hyperinflate. Currency controls were imposed, tariffs instituted, and the
economy was allowed to fall into a severe recession: Unemployment hit 25 percent;
homelessness and crime spiraled upward and the poverty rate peaked at more than
50%.
Hyperinflation cannot exist without paper money but can be seen as the
logical outcome of decades of currency debauchery. The 1834-1839 debasement of
the ake, the standard silver coin of the Ottoman Empire, resulted in a fivefold value
drop, increasing the nominal amount of money in circulation. Episodes of
hyperinflation produce staggering increases in price and bank notes
denominated in millions, billions, and trillions. Hyperinflation is often the result of
governments using unbacked currency during wartime to pay the expenses of the
conflict: the United States in the 1770s, the Republic of China in the 1940s and the United
States again today.
In the United States, hyperinflation was seen during the Revolutionary War
and during the Civil War on the Confederate (losing) side. The Northern Greenback
annual inflation rate indicated what might be called soft hyperinflation about 25%
in 1863 and 1864. Cases of extreme social conflict encouraging hyperinflation can be
seen in Germany after World War I, Hungary at the end of World War II and in
Yugoslavia after the death of strong man Marshall Tito. The hyperinflation episode
in the Weimar Republic in the 1920s is, in many respects, the paradigmatic example
and the one that made economists and others aware of hyperinflation as a
phenomenon unto itself. While it was not the first example of hyperinflation, it was
perhaps the first recognized as such.
Following World War I, the Treaty of Versailles forced Germany to pay
significant reparations (compensation) to the nations that won the war, starting
in 1919. However, Germany had a very weak economy at this time; in effect, the
young republic of Weimar had no money. To pay its reparations and rebuild the
economy, the German government printed money. The inflation reached its peak
by November 1923, but ended when a new currency (the Rentenmark) was
introduced.
Hyperinflation did not directly bring about the Nazi takeover of Germany;
the inflation ended with the introduction of the Rentenmark and the Weimar
Republic continued for a decade afterward. The inflation did, however, call into
question the competence of liberal institutions. It also produced resentment of
Germany's bankers and speculators, who were blamed for the inflation and the
crippling of the German economy.

< 43 >


Co n s p i r at i
The fakery of the outgoing Alan Greenspan administration, in burying the M3 report,
was clearly intended to conceal the fact that the rate of increase of world prices of
primary materials has the world as a whole currently on the same kind of least-action
pathway curve of hyperinflation which gripped Weimar Germany during the second
half of the year 1923.
Uncensored.co.nz

Velocity, Too
Hyperinflation involves both the supply and velocity of money. During a
period of hyperinflation, the return to use of gold, silver or even barter becomes
common. Many of the people who hoard gold today expect hyperinflation and are
hedging against it by holding specie. This is sometimes met with capital controls, an
idea that has swung from standard to anathema and back into semi-respectability. All
of this constitutes an economy that is operating in an abnormal way, which may
lead to decreases in real production.
Once the vicious circle of hyperinflation has been ignited, dramatic policy
means are almost always required as simply raising interest rates is insufficient.
Bolivia, for example, underwent a period of hyperinflation in 1985, where prices
increased 12,000% in less than a year. The government raised the price of gasoline,
which it had been selling at a huge loss to quiet popular discontent, and the
hyperinflation came to a halt almost immediately since it was able to bring in hard
currency by selling its oil abroad. The confidence crisis ended, and people returned
deposits to banks.
Investors who fared best during great hyperinflations of the early 20th
century were the small minority who had the foresight to purchase foreign currency
or gold and silver. And those who profited beyond their wildest dreams in the 1970s
were those positioned in the best companies in the world to own during a currency
collapse gold and silver mining stocks. Why did some profit while others did not?
Its a matter of anticipation of understanding the way the world really works and
having the resolve to take the necessary action. The information exists. Finding it is
difficult. And even when one does stumble on a truthful presentation, it may be
vitiated by a reluctance to mention certain matters, such as who or what is behind the
social, political and economic problems that vie for attention with increasing urgency.

< 44 >

FMNN commentator and free-market thinker David Morgan understood

the opportunity for precious metals in the 1990s and has been preaching it to an
expanding group of subscribers for nearly a decade now. The following is from a
December 2005 FMNN post, How to Buy Gold for $252 Per Ounce.
Over the years [Stone Investment Group] has gotten many
inquires about confiscation of precious metals, and yet it seems no one
asks the more important question of confiscation of purchasing power.
One reason the secular bull market will continue is that a few more
people worldwide will discover the simple truth that $500 yesterday
does not equal $500 today. The ongoing destruction of all currencies is
being evidenced by gold showing strength in almost all currencies. Yes,
be prepared to understand the basic principles of sound money, real
profit, and the politics of illusion and you will earn the conviction
required to think, study and act on fact rather than emotion.

The more money is printed, the more crises occur, and the less the currency
is worth. In the late 20th century the procedure was so obvious that the Economic
Intelligence Review reported that billionaire-financier George Soros is said to have
called it the wall of money policy at a Davos financial conference in 1999.
Printing money and offering ever-expanding credit lines may solve shortterm problems, but the problems will inevitably reoccur. Managed economies with
managed monetary policies limp from one disaster to the next, as a brief timeline of
the late 20th century illustrates:
1970s Decade-long inflationary crisis: During an inflationary currency
crisis peoples confidence in the paper money diminishes and their preference for
precious metals strengthens. The monetary bureaucracy will resort to almost any
kind of stunt to confuse the issue. During the great 1970s U.S. inflationary decade,
Gerald Ford wore a Whip Inflation Now (WIN) button. Supporters were encouraged to
reduce inflation by declining to consume.
1981-82 Steep recession: This was the direct result of Federal Reserve
chief Paul Volckers monetary tightening, which included interest rates near 20%.
Volcker overdid it. U.S. stock markets ground nearly to a halt. American commercial
banks almost defaulted and unemployment moved up hard while Western
economies, especially Americas, stagnated.
1987 Stock market crash: Oct. 22, 1987. Apparently only the American
political elite wanted to see the nations loose monetary policy continue. The rest of
the world was terrified. The crash was severe and brought down other markets in a
kind of daisy-chain from which capital markets did not recover until the mid-1990s.

< 45 >

Reality Byte: Inflation and Disinflation

This chapter has thus far examined two economic scenarios for the rest of the 2000s.
One scenario, the most developed, focuses on two flavors of hyperinflation; another
examines an optimistic view. Here are three more scenarios. None are mutually
exclusive and certainly the 2000s have already experienced a kind of stagflation.
Disinflation was mentioned in the optimistic scenario above, but not as an economic
model, but as one of a variety of factors. In fact, disinflation can become a dominant
feature within a business supercycle such as this one. Disinflation occurs when the rate
of inflation is going down, but money creation continues to create inflation thus,
disinflation, as the price of money continues to cheapen but at a slower rate.
Deflation occurs when inflation subsides entirely and money suddenly starts to
become more rather than less expensive. Deflation is said to be the bane of central
bankers existences, as the economy becomes resistant to tools the central bankers
have in their arsenal. Instead, in a race to the bottom, prices move down and goods
and services become less expensive. Due to monetary complications, international
purchasing might lessen as well. The combination of a slowing economy and
downward moving prices could aggravate economic instability, unravelling credit
arrangements, contracting equity markets and causing increased joblessness. All this
creates yet further downward pressure on prices, and the cycle may be hard to break
a kind of fiscal death spiral.
Stagflation is a free-market money model suited to this part of the business
supercycle. Under the socialist, fiat-money policies of government-backed central
banking, stagflation was not seen as a possibility as recently as the beginning of the
1970s. But that decade definitively marked its debut. In a stagflation, inflation remains
a factor, but the increasing money supply does not seem to stimulate the economy.
Thus the worst of both worlds are present: inflation verging on a soft or hard
hyperinflation and substandard or negative growth. Ed. Note: Some two years after
this analysis was written, the unfolding debacle of subprime lending, with its disinflationary effects is giving rise to strengthened stagflation, just as predicted.


1996 Asian crisis: European banks demanded that Asian tigers pay back
their national debts in gold, not paper. Government officials in several countries
literally went door to door collecting gold and silver heirlooms. At the same time, the
International Monetary Fund was loudly advocating the printing of mass quantities
of afflicted countries paper money to counter deflation.
1997 Hedge fund bankruptcy: Late 1990s bankruptcy of giant hedge fund

< 46 >

Long Term Capital Management. This, in turn, yielded to perilous financial

conditions in Central America.
1999 Y2K: Fear that the turn-of-century date change in certain legacy
computer systems the so-called Y2K phenomenon would paralyze the datadriven economy led to massive overprinting of money. When the fallout from Y2K
proved minimal to non-existent, the Federal Reserve quickly removed the punch
bowl setting off a currency crunch that collapsed the Nasdaq high-tech market.
2000 U.S. Nasdaq crash: The Feds credit tightening after the Y2K scare
caused the sickening loss of Nasdaq equity. Media and print commentators, faced
with the spectacle of valuations seemingly cut in half overnight, often speak of
wealth going away.
(Note: The above Nasdaq correction should have affected both exchange
averages equally. In fact, the lack of decline of NYSE companies might be due to the
activities of the so-called Plunge Protection Team set up in the United States after the
1987 stock market crash by then-Treasury Secretary Robert Rubin. If this is the case,
then even now, NYSE values are considerably inflated, with all the attendant risk and
economic distortion that implies. It is being propped up in order to maintain the
confidence of the public which, coincidentally, is paying for the illusion.)
Storm Warning
The velocity of money increases. Even if the U.S. federal government begins
to trumpet balanced budget numbers, as it well may do in the waning years of the
Bush administration, the likelihood that people holding dollars will continue to do so
is diminishing especially foreigners. As the Internets flow of information
continues to expand, more and more will come to comprehend what David Morgan
has noted, the simple truth that $500 yesterday does not equal $500 today. Velocity
undoubtedly increases as a result and the threat of a hard hyperinflation looms. This
is a new complication in an old game. Call it the Internet X factor.
The patterns of hyperinflation, soft and hard, are clear. We have already seen
California live-in trailers priced at US$1 million and up. Even fixer-uppers can sell
for $1 million or more. The average investor takes rising prices in stride, especially if
these rising prices are passed on to others. But in a real hyperinflation, prices will rise
far faster than peoples ability to keep up. Already the ravages of irresponsible fiscal
and monetary policies have hit home, but most dont know it.
Drive around the United States and see how the middle region of the country,
the place where the silent majority resides, is being hollowed out by fast-rising prices
that diminish value, destroy business and ultimately send jobs and workers overseas.
Americas great cities have not yet felt the brunt of the inflation that is to come. But

< 47 >


E l i t e R e t r eat ...
It is my belief that we are now embarked on a journey that will take us into a hyperinflationary depression. There may be brief deflationary spurts that punctuate this
journey along the way, but an examination of history leads me to conclude
hyperinflation is much more likely than deflation. Unlike the U.S. economy during the
1930s or Japan in the 1990s, the U.S. economy is no longer self-sufficient in capital,
manufacturing, and energy. And unlike the 1930s, our currency is no longer backed by
gold. The U.S. is now the worlds largest debtor nation versus the worlds largest creditor
nation as we were in the 30s. We are no longer self sufficient in energy as we were
during the last depression. In contrast to the 1930s, U.S. oil and natural gas production
decline each year. This forces the U.S. to import more of its energy needs, energy we pay
for with dollars. When the world no longer accepts those dollars as payment, the full
impact of inflation will hit home.
FinancialSense.com, Jim Puplava, September 2004

just as in the 1970s, the cycle is playing out bit by bit. What is scary is that it is a far more
powerful financial storm than Americans have experienced before exacerbated by
the Internet and the increased velocity of money for which it will be responsible.
Economic Action Alert
Convert paper money assets, especially U.S. dollars, into precious metals
to counteract the clearly premeditated lack of Fed transparency regarding
inflation. When faced with the prospect of hyperinflation, the obvious move is to
purchase so-called honest money gold and silver. As hyperinflation moves
toward reality and there is no doubt the direction in which it is headed leverage
afforded by silver- and gold-based investments will also become more valuable.
Mining stocks may become quite extraordinary investments. Toward the end of a
commodity super-bull run such as this, whether it takes a decade or longer, such
equity usually begins an extraordinary run-up. In fact, the lack of evidence in this
regard tells us only that the market of which we speak has a good deal of time left.

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3
How the Visible Power Elite got their money and their power.

RISI NG MON EY POWER

If the world is to be returned to the Dark Ages, the Protestant middle class must
be destroyed. Socialist-communism accomplishes this, having yielded its bitter fruit in
both Great Britain and the United States.
Excerpted at Whale.to, Vatican Assassins
High Alert
The idea of a global power elite operating in concert is controversial. It
would be nice to avoid the whole subject and move on. But an assumption that the
global elite exists, is active and has goals is necessary to the argument of this book.
In fact, it may be necessary to a realistic understanding of what is going on in the
world today as well as to what went on before.
The former president of FMNN was Harry Browne, writer of numerous
sociopolitical and economic New York Times best-sellers. He broke new ground by
writing unapologetically about the manifold ways that government can turn
success into failure and, basically, complicate and delay any project on which it
embarks. He advocated responsibility for ones self and ones money and urged
that people leave government out of their lives whenever possible. In bringing back
the age-old conversation about money power as a factor in this world, and
attempting to gauge its activity and influence, we merely follow in his footsteps.
There are actually two main conspiratorial strands in the world or at
least on the Net. One presents the current-day New World Order in apocalyptic
terms and tracks back the history to Babylon. The narrative also includes a
variety of secret societies such as the Knights Templar and, of course, the

< 49 >

Illuminati. There is also a fairly energetic focus on Jews, Israel, the Rothschilds, the
British Royal Family, the City of London and finally Armageddon. This is difficult
to unpack, to say the least.
What is far easier to discuss, and to establish as true from a historical and
academic standpoint, is a kind of condensed version of the globalist enterprise to
which we are all seemingly subject. That is the subject of this chapter.
Philosopher Kings and Financial Instability
Money power exists. A group of individuals hailing from ancient, wealthy
families, religious orders, banking dynasties and international corporations has for
generations caused sociopolitical instability, economic dislocation, hyperinflation
and even war to advance its cause.
The above may bring to mind conspiracy-monger. In fact, this is why
many in the financial industry shy away from such admissions, even though they
will agree in private that a global, generational conspiracy exists. Often they are
able to catalog the troublesome results historically, and in detail. Yet they are
worried about their jobs, about risking their earning ability. They do not grasp
they are participating in a conspiracy of silence as damaging to them as that
which they fear.
What will the world look like if the power elite has its way? Those whom we
might characterize as the power elite share the goal of putting in place a kind of
Platonic Republic in which philosopher kings (or in this case, enlightened
corporate leaders, financiers and bankers) run the world from behind the scenes. It
is a brave new world administered by a single government entity alongside one
omnipotent central bank with various powerful appendages such as an
international judicial system and massive cabinet entities in health, education, etc.
International corporations will provide the bulk of employment, but there will also
be a very large public sector that regiments individuals daily lives.
You dont have to believe in an active power elite that is driving us toward
one-world internationalism. But if you wish to survive with some semblance of a
lifestyle and an intact family, you probably do have to accept and internalize the
consequences of the policies that are being put in place policies generating the
kind of financial instability that will ease the way for global government and
consolidate economic power.
The road to such unity is to be realized via a number of smaller
consolidations. In the United States, treaties such as the North American Free Trade
Agreement (NAFTA) and the Central American Free Trade Agreement (CAFTA)
smooth the transition from superpower to hemispheric union. The outcome of

< 50 >

this effort is to be similar to what has occurred in the European Union and is not
easily stopped. While the EU Constitution was rejected by several major
constituents, those charged with the responsibility of moving the EU forward are
implementing constitutional powers piecemeal despite the rejection.
That few have any idea what is really going on must be a great
satisfaction to those in the forefront of such manipulation the powerful
families, bankers and global corporations involved in the suffusion of the
poison that G. Edward Griffin, author of the Federal Reserve history Creature
From Jekyll Island, has famously called the Mandrake Mechanism. And
certainly it is magic, too, but dark magic of a most calculating kind. Over time it
bankrupts all but those close to the magical money mechanism itself.
Eventually it bankrupts whole nations in a cascading flood of debt, default and
ruination. Meanwhile, those who have orchestrated the catastrophe are on to
the next region, the next victim, the next country.
Government Pillars of Financial Control
The three pillars of money power are government, information and
religion. Of these three, lately, government and information have been the most
powerful levers. The two main mechanisms whereby the power elite intended to
generate what it needed were a central bank and a graduated income tax. In fact,
the power elite needed only a central bank, but if people were not taxed as well, the
banking mechanism would seem far more obvious. All three pillars work more
effectively as power is centralized, and, together, the system provides a knockout
blow. Decentralization threatens a loss of control. See concepts of diffusion and
centralization, chapter six.
In the early 20th century, Americans were still very wary of a central
banking system thanks in part to founding father Thomas Jeffersons influence.
For this reason, the founders of the American central bank and they were some
of the wealthiest and most powerful families and industrialists around
decided to call the bank a Federal Reserve. They justified the name and the
concept on the grounds that the American banking system needed a lender of
last resort and that was to be a reserve of money center banks with a good
deal of influence and power centered in New York. The Federal Reserve Act
became law in 1913, along with a federal income tax shortly thereafter. In fact, the
income tax apparently remains unconstitutional on a number of grounds
including most saliently that the Constitution itself forbids it, but that has not
prevented it from becoming the law of the land.
Much of what the president, Congress and the judiciary system does today in

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America would, in fact, be construed as unconstitutional in pre-Civil War America. This

is why we can say with some certainty that society simply didnt evolve this way it
was pushed, and built. Piece by piece, brick by brick, a democratic America has been
established, one in which equal rights are enforced by the federal government and
public life and service often take pre-eminence over private accomplishments.
It is a big accomplishment to move hundreds of millions of citizens away from
republican roots in a mere 100 years. Today, America the biggest obstacle of all to an
international, globalist economy could more rightly be characterized as having a
system of democratic socialism or even fascism rather than republicanism. The power
elite-controlled federal government spends $2.5 trillion of the nations gross national
product of some $12 trillion. There is almost nothing that the power elite via
government does not seem to have a hand in, from the environment, to public schools,
to private business, even small business. On top of federal government mandates and
tributes are overlaid state and even local ordinances, regulations and taxes. Truly a
citizen of the United States of America no longer can claim he or she lives in a republic,
or anything resembling a republic, with anything similar to limited government.
The evolution, as has been indicated, comes from what would seem to be a
simple, but incredibly powerful engine of social change. That engine is the central bank
and the endless flow of money it generates. Money can be printed at will by a central bank
and credit can be issued at any time and in any fashion; however, the result in almost all
cases, almost all of the time, is inflation. Central banks help produce inflation the way
industrial plants produce exhaust fumes as part of the process. As taxes rise, the
central government or its private banking facility prints more money, further
eroding the value of the paper notes that its citizens use in place of gold and silver by
law. Citizens get poorer and the power elite gets richer. Now some, or maybe a large part,
of the money that the central government receives may be wasted, but a good percentage
goes to hiring more bureaucrats. The bureaucrats are not there to serve the people; they
are there to serve the law. And the law is whatever the power elite decides it is.
How many servants of the state are there? In Europe, as in America, there are
public unions, public school systems, the military, the police forces, even private unions
to a large extent. Of course, without the power of the central bank and without graduated
taxation, the power elite would not have the necessary state control over money to
generate such a large group of people indebted to it. It is only the monetary system itself
the sheer overwhelming amount of money at the states disposal that makes it
possible. It is government-backed fiat money that creates the modern nation-state. It is
fiat money that gives the law its credibility. Why else would people put up with such a
system? In America, as in Europe, the central government spews out thousands, even
hundreds of thousands of laws and regulations each year, many of which are surely
unenforceable, frivolous or even downright contradictory. Where does it end?

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With so much work, there is very little time for anything else including an
investigation of just why ones lot is so miserable. Meantime, the other 50% of citizens
are either on welfare of some sort or actively working in the bureaucracy and thus
dependent on the state itself for sustenance. This is how the chains of money power
gradually encircle a nation state, confine its citizens, empower an already powerful
sociopolitical and financial elite, and create a democratic socialist society out of a
republic. All with the intent of draining the targeted nations productivity and
subsequently the wealth of its citizens.
Religious Pillar
While we have dealt at length about the pillar of government(and its subset,
central banking), we will try to be a bit briefer when it comes to religion. Once religion
was indeed a strong pillar of money power, but with the Reformation some 500 years
ago, the centralizing influence of the Catholic Church eroded along with its usefulness
to the power elite. Once religion was not available to endorse the divine right of kings
to make a godhead of the power elites highest officials in the eyes of the public, the
religious pillar became something of an impediment.
So what happened? If you look around today, you will notice that much of
formal religion seems under attack. If you accept that the sociopolitical trends of the
day are not accidental but rather put into motion by this intergenerational money
conspiracy, then the reason for so much anti-religious feeling becomes fairly clear: The
power elite apparently has decided to use religion as a unifying force. It is using it as a
target and rallying the public against it. This has been going on for some time. In
America, religious fundamentalists are mocked or attacked; in Europe, religion has


Co n s p i r at i
The Illuminati want their global fascist structure in place by 2012, but they seem to be
behind schedule. Whenever that happens they seek to increase the speed of change by
orchestrating major events that they blame on others like 9/11. Look at how the
agenda of control has moved on as a result of that horrific day and the orchestrator was
not Osama bin Laden, but the force that has used it as the excuse to take away a stream
of freedoms. It is a technique I have dubbed problem-reaction-solution covertly
create the problem, get the public to say something must be done, and then openly
offer the solutions to the problems you have covertly created.
Interview with leading Illuminati researcher
AboveTopSecret.com

< 53 >

been seriously on the wane for at least a century (among the more prominent
democracies, anyway) while China regularly attacks the quasi-religious sect the FalungGong.
Its important to remember that in order to keep people numbly attached to
their beloved television sets and movie theaters, they need to keep raising the shock
barrier. And most of the shock value is achieved by producing ever-racier
programming. People need to be constantly super-charged with an ever-increasing
level of mental stimulation or their attention fades.
Perhaps the most clever use of religion lately can be seen in what is
surely the power elites fomenting of a kind of religious war between the West
and the Muslim East. September 11 and other Muslim-ascribed provocations
have been used to try to whip Western democracies into a frenzy of hate. In both
Europe and America, the meager freedoms that have remained untouched by
the Wests voracious democratic governments are in jeopardy. Gun control is
pursued with vehemence by authorities around the world; an unarmed
populace is far more malleable than an armed one. Meanwhile, wire taps of all
kinds, high-tech photography, electronic tracking and chipping threaten to
turn first Europe and then the United States into virtual police states. Is all of
this mere coincidence? Or would it behoove a powerful, monied elite to gain
control of citizens before upsetting them with the implementation of
increasingly robust internationalism?
In analyzing modern money power, I have come to the depressing
conclusion that those in the power elite, including those who are Jewish by birth,
have no compunction about manipulating other Jews in pursuit of their globalist
ambitions. One has to look no further than the emplacement and continued
operation of the so-called Jewish state to see how the Jewish question has been
manipulated in such a way as to cause bloodshed and violence across the latter
half of the 21st century. (If this shocks you or seems improbable, please go and
read about the Balfour agreement and the founding of Israel.) Even today there
is a large growing contingent of Jews who believe that the Jewish state is a
disaster, that it should never have come into being and that it has caused the
very hate and anger that it was supposed to rectify. In a July 2006 article, Net
commentator Joel Skousen described this mechanism, and put it in the context
of the latest Mideast violence:
The reason [for the latest Israeli-Palestinian violence] is
because the international community (UN and Anglo-American
globalists) dont want a solution based upon the normal exercise of
a nations military sovereignty. They use and foment continued

< 54 >

conflict in order to maneuver still-sovereign nations into a corner

that will justify an internationally-imposed "solution" ala Kosovo
and the Balkans. No nation would voluntarily accept such
imposition (which never reverts to independence), and that is why
they get continual warfare until they have no choice but to accept
international control. Most often, the globalists target nations that
have racial and ethnic competing minorities (natural source of
conflict), and for nations that dont, they foment ethnic
migrations (false free trade gimmicks) in order to induce future
conflict. That is what has been happening in Europe and the U.S.
over the past 20-30 years. Even Arab and Persian nations, despite
their anti-democratic regimes, still want to be free from
international control.
So do the people of Israel, who dont realize their own leaders
are negotiating away their security in order to force an
international settlement upon them. But the Israelis are also
pampered by periods of peace, and have a short span of tolerance
for the hardships of the reserve call-ups and mounting military
deaths that these escalations impose. The Israeli globalists know
that within a month of wartime hardships, the Israeli public
will be ready to accept another "victory" that always falls short
of eradicating the problem thus, setting the stage for more
conflict later on when change is not forthcoming by political
maneuvers.

Did the power elite have a hand in the creation of the Jewish state? Did it
in fact anticipate that the founding of Israel must inflame sectarian tensions
eventually providing justification for what has, today, become a war on terror
with the resultant diminishment of Western freedoms and all that entails? Those
of Jewish birth who are set on this course of exploiting other Jews for the sake
of internationalism are not Jews in the religious sense, not even in the spiritual
sense so far as I am concerned. I ask that other Jews American and European
Jews begin to make a distinction between the handful of globalist Jews of the
power elite and the rest of the millions of ordinary Jews whose cares, troubles and
triumphs are no different than anyone elses.
Information Pillar
With the pillars of government and information safely in its grasp, the power
elite made a good deal of progress toward its goals in the 20th century. But how fast
things change. Here in the 21st century, control over information has slipped away and

< 55 >


Co n s p i r at i
It has been said that the effort to establish a central bank here caused the American
revolution. ... British Parliament ordered the colonists to give up their currency, and the
colonists soon found themselves encumbered by a circulation strapped with 30-percent
annual interest. Benjamin Franklin summarized the causes of the war thus: We would
have gladly borne the little tax on tea and other matters, if it had not been that they
took from us our money which created great unemployment and dissatisfaction.
Within a year, the poor houses were filled. The hungry and homeless walked the streets
everywhere. Immediately upon conclusion of the revolution, agents of the same
bankers appeared amongst the fledgling government, attempting still to establish a
central bank. The ensuing century and a quarter were rocked by repeated efforts to
establish and to thwart the establishment of central banks here.
People For Mathematically Perfected Economy,
Cause of the American Revolution
PerfectEconomy.com

now its control over government is jeopardized as well. Religion is no help to it or only
insofar as it can be manipulated to foment terror and chaos that can then be taken
advantage of. If the information pillar should crack or crumble, then control of
government itself along with its central banking money machines is jeopardized.
The whole finely tuned system is in danger of falling down.
The Internet must certainly be a blow to modern money power for the
pillars relied on the most today are information and government. Fear is perhaps the
most important tool. As Adolf Hitler noted, The one means that wins the easiest
victory over reason: terror and force. In the 20th century, anyway, the power elite
virtually cornered the media market by spending huge advertising dollars with
magazines, radio stations and TV networks capable of generating an audience. So the
media have been competing for those banks and bank-financed companies most
of which make up Americas fortune 500. Remember, he who writes the checks writes
the rules and since the bankers had control over the money supply, it was their
game. Throughout the 20th century, the cooperation between the nations
mainstream media and the government grew closer, choking off independent
thought and restricting the kinds of opinions that could be disseminated to the larger
public. This process even grew to have a name: political correctness. Of course the
U.S. press including radio and TV has never been a controlled press as it is in
communist countries. There, each story had to be handcrafted to the bureaucracys

< 56 >

liking a fairly obvious and clumsy sort of control.

In the West, the process proved more subtle, leading to control of media via
buyouts and advertising support then gradually restricting information flow rather
than falsifying it. Now, I have not made a thorough study of European media, but I am
fairly certain of the evolution of the power elites control in Canada and far more
importantly in the United States. I can say with confidence that as soon as the airwaves
were declared public, the U.S. government began regulating and (by inference)
controlling content. In America, with three fairly controlled channels all reporting
approximately the same kinds of stories from the same vantage point, television could
never be said to have been independent at all.
It is hard to say what the next act will bring. Certainly, the establishment press
will continue to show sympathy for the established order which is unraveling,
nonetheless. The Internet could possibly be controlled, as is being done in China, but not
necessarily with any great thoroughness. The West has a tradition far different from
Chinas and the American tradition is even further removed. Were the U.S. government
to step in and simply ban the free exchange of information over the 'Net, the public
reaction would be quick and harsh. Given the need for information retrieval and the
necessity for untrammeled modern technology, there is little Western governments can
do without creating a two-track regulatory system. This would allow big business to play
by one set of rules on the Net and the public by another. That is a difficult concept to
present in the populist West.


Co n s p i r at i
Now after 56 years the truth emerges. The Israelis were waiting for an opportunity
to expand beyond the partition borders. The Palestinians did not flee but were
driven out. There was not one but 24 massacres. Transfer or Ethnic Cleansing was
(Israeli PM) David Ben Gurion's unwritten policy. An Israeli historian Benny Morris
has access to IDF archives and the integrity to speak. In a January 8 interview in
Haaretz, Morris says: Twenty-four [massacres]. In some cases four or five people
were executed, in others the numbers were 70, 80, 100. ... That can't be chance. It's a
pattern. Apparently, various officers who took part in the operation understood that
the expulsion order they received permitted them to do these deeds in order to
encourage the population to take to the roads. The fact is that no one was punished
for these acts of murder. Ben-Gurion silenced the matter. He covered up for the
officers who did the massacres.
SaveTheMales.ca

< 57 >

The 20th-century fixed-cost barriers-to-entry that served the interests of big

media conglomerates in the United States and overseas have been turned upside down.
Instead of providing competitive protection, the enormous complexity and sizeable
investments necessary to run a vast media company have transformed virtually
overnight into sunk costs that are probably never to be recovered. More problematic
for the power elite is not the loss of capital, but the potential loss of control over the
entire operative construct of Western democracy. This is similar to the collapse of
religions usefulness as a lever of control after the invention of Gutenbergs press.
Conspiracy History
Weve examined the pillars of the power elite. Lets take a closer look at the elites
makeup and history. One of the most legitimate sources of information about the power
elite is deceased historian Carroll Quigley whom alternative Net journalist Steven
Yates described in a post on LewRockwell.com as a highly respected senior-level
professor of political history at the Foreign Service School at Georgetown University. He
specialized in macro-history, or the study of large-scale, global developments and trends.
It was Quigleys powerful connections that obtained for [President William Jefferson
Clinton] the Rhodes Scholarship.
An academic prodigy, Quigley was written up in Ripleys Believe It or Not for
becoming youngest-ever Ph.D. at Harvard, where he graduated magna cum laude. He
taught at both Harvard and Princeton before joining Georgetown Universitys Edmund
A. Walsh School of Foreign Service, where he refined his highly regarded course,
Development of Civilization, and eventually became dean of the school. During his
career, he consulted to such U.S. agencies as the Department of Defense, Navy and the
Smithsonian Institute.
Quigley was obviously successful and well-regarded by the D.C. establishment
an insideron familiar terms with what would seem to be a cross-section of the power elite.
Importantly, he wrote two extensively sourced books, The Anglo-American
Establishment, and Tragedy and Hope, establishing inarguably the existence of a
transatlantic secret Anglophilesociety. In Quigleys own words from Tragedy and Hope:
There does exist an international Anglophile network which operates,
to some extent, in the way the radical Right believes the Communists act.
In fact, this network, which we may identify as the Round Table Groups, has
no aversion to cooperating with the Communists, or any other groups, and
frequently does so. I know of the operations of this network because I have
studied it for twenty years and was permitted for two years, in the early
1960s, to examine its papers and secret records.

< 58 >

Quigley identifies the founder of the Round Table Groups and thus the U.S.
Council on Foreign Relations (CFR) as well as the fabulously wealthy Cecil Rhodes.
Today, he points out, Rhodes exercises his influence from the grave via seven wills
establishing his Rhodes scholarships and funding the formation of two powerful, semisecret societies, one each in Great Britain and the United States.
In American Rhodes Scholarships, Frank Aydelotte, American secretary to the
Rhodes trustees, wrote: If [the selected American scholar] has the capacity for
assimilation, if he can become a part of what he meets, he may return from Oxford to
the United States a citizen of the world. Alternative Net journalist William F. Jasper
explains, Aydelotte was writing to obfuscate and conceal, not to reveal. Rhodes was not
interested in spending his fortune merely to promote slobbery sentimentalism about
universal brotherhood. He had grander and more concrete aspirations. As biographer
Sarah Gertrude Millin put it: The government of the world was Rhodes simple desire.
That desire was apparently placed in Rhodes by internationally celebrated art
critic and Oxford professor John Ruskin. As the first Slade Professor of Fine Arts at
Oxford in 1870, Ruskin hit Oxford like an earthquake, according to Quigley, not so
much because he talked about fine arts, but because he talked also about the empire
and England's downtrodden masses, and above all because he talked about all three of
these things as moral issues. Ruskin himself confided some of his most revolutionary
thoughts to his newsletter, Fors Clavigera: I am myself a Communist of the old school
reddest also of the red.
Inspired by Ruskin, Rhodes set forth, Quigley writes, to spread the English
ruling class tradition throughout the English-speaking world [and to] bring all the
habitable portions of the world under [its] control. Quigley relates that Rhodes was
fortunate to find considerable support in his quest from Lord Rothschild and Alfred
Beit, and to monopolize the diamond mines of South Africa as DeBeers Consolidated
Mines and to build up a great gold mining enterprise as Consolidated Gold Fields. In the
middle 1890s, Rhodes had a personal income of at least a million pounds sterling a year
(then about five million dollars), which was spent so freely for his mysterious purposes
that he was usually overdrawn on his account.
Mills and Money Power
The term power elitecomes from a book published 40 years ago by Columbia
University sociologist C. Wright Mills who, ironically, wrote it to dismiss the conspiracy
theory of modern political history. Although Mills claimed to find no conspirators in
high places, he nonetheless admitted, There is little doubt that the American power
elite which contains, we are told, some of the greatest organizers in the world has
planned and plotted.

< 59 >

Mills recognized the existence of a definable network among elites in politics,

academia, the military, the media and foundations. He admitted, Certain types of men
from each of the dominant institutional areas, more far-sighted than others, have
actively promoted the liaison before it took its truly modern shape.
While many elements of this network are visible and identifiable, according to
Mills, the power elite is not altogether 'surfaced. Many higher events that would
reveal the working of the power elite can be withheld from public knowledge under the
guise of secrecy. With the wide secrecy covering their operations and decisions, the
power elite can mask their intentions, operations, and further consolidation.
Furthermore, Mills noted, the power elite provides for its own continuity and new men


Conspirati
Globalization, a form of world-wide elimination of the sovereign nation-state which is
already far advanced, is a process of transfer of the power of sovereign nations to global
syndicates of giant blobs of private financier interests, such as those typified by the globally
predatory system of hedge-funds today. Today, hedge funds composed of consortia
representing world-wide assortments of private financier interest, are gobbling up, and
often obliterating entire national private industries and public investments, from around
the world. The ideological hard-core of this is traced to figures such as the same, notorious
Alexander Helphand Parvus who indoctrinated his dupe Leon Trotsky in the Synarchist
(e.g., anarcho-syndicalist) doctrine of Permanent War, Permanent Revolution. You could
also look up the facts concerning Trotskys doctrine of Neither Peace Nor War at BrestLitovsk. This influence of Parvus over Trotsky was the genesis of the Trotskyist neoconservatives associated with the circles of Carl Schmitt protg Professor Leo Strauss of
the University of Chicago and the doctrine of those followers of the Carl Schmitt dogma of
Thrasymachus associated with the present-day U.S.A.s Federalist Society.
The modern notion of financier-ruled world empire, takes its origins in the role of the
Martinist freemasonic cult of Count Joseph de Maistre, which orchestrated the French
Revolution through the hoax of the 1785 affair of the Queens Necklace, the July 1789 Siege
of the Bastille, the Danton and Marat regimes, the Jacobin Terror, and the reconstruction
of the personality of Jacobin Napoleon Bonaparte, a Robespierre asset, into the Roman
Imperial image of Napoleon Bonaparte. This Thrasymachus-like image of Napoleon as
emperor was the model of G.W.F. Hegels theory of the state, for the pre-fascist Romantic
school of law of Hegel and his Berlin university crony Savigny, and such outgrowths of that
as the modern fascist doctrines of Nazi Crown- Jurist Carl Schmitt.
Lyndon LaRouche

< 60 >

come readily into it and assume its existence without question.

The continuity of this elite was also examined by historian Michael H. Hunt in
his 1987 study, Ideology and U.S. Foreign Policy. Hunt described the typical member of
the Eastern Seaboard Anglophile elite into whose hands American foreign policy has
been trusted for more than seven decades:
His formal education [comes from] private schools and Ivy League colleges
and law schools. He practiced corporate law until gaining public office, usually by
appointment. His soundness on foreign-policy questions was insured by the values
inculcated in elite social circles, in exclusive schools and in establishment clubs and
organizations of which the Council on Foreign Relations was the most important.
CFR Power
To have influence, one must be near the seat of power. Council on Foreign
Relations members have reportedly been part of every presidential administration
since Woodrow Wilsons. The first CFR member to have the presidents ear was actually
one of its founding members, Edward Mandell House. A dedicated socialist by
conviction and circumstance, House was so close to Wilson that he was reportedly
known as Wilsons brain. In 1912, House wrote Philip Dru: Administrator, a book
that was destined to disappear just as thoroughly as Carroll Quigleys Tragedy and
Hope. House had simply revealed too much and the book was apparently allowed to
go out of print.
Available once again, the book shows us, step by step, how a socialist regime
could take over the United States by controlling the political parties and through the
implementation of a central bank to control the currency and a graduated income tax to
alleviate income disparities. Installed with Wilson in the White House, House did as Dru
would have helped pass legislation in 1913 that put in place both the Federal Reserve
central banking system and a graduated income tax.
CFR members surround the president, are intimately involved in day-to-day
decisions and are said to be a kind of Secret Team closely aligned with the State
Department, as well as federal intelligence and policing agencies. CFR members George
Kennan, Walter Lippmann, Paul Nitze, Dean Achenson, and Walter Krock were among
those who helped position the Marshall Plan and North Atlantic Treaty Organization,
which defined the United States international post-war role. At least five presidents
(Eisenhower, Ford, Carter, Bush and Clinton) have been members of the CFR. Supreme
Court Justices Stephen Breyer, Ruth Bader Ginsberg and Sandra Day O'Connor were all
CFR members.
Being involved with CFR does not necessarily mean endorsing CFR goals and
objectives. But controversy about the councils real purpose and use of power was stirred

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up again in 2005 with a CFR white paper that, as Phylis Schlafly wrote, let the cat out of
the bag about whats really behind our trade agreements and security partnerships with
the other North American countries.
Schlaflys article put the spotlight on a 59-page CFR document that,
astonishingly enough, spells out a five-year plan for the establishment by 2010 of a
North American economic and security community with a common outer
security perimeter.
Community, Schlafly wrote in a post on her Web site, means integrating the
United States with the corruption, socialism, poverty and population of Mexico and
Canada. Common perimeter means wide-open U.S. borders between the United States,
Mexico and Canada. And she added, The CFR goal is clear: a common economic space
for all people in the region, a space in which trade, capital and people flow freely.
Building a North American Community
This CFR document, called Building a North American Community, asserts
that George W. Bush, Mexican President Vicente Fox, and (former) Canadian Prime
Minister Paul Martin committed their governments to this goal when they met at
Bushs ranch in Waco, Texas, on March 23, 2005. The three adopted the Security and
Prosperity Partnership of North America and assigned working groups to fill in the
details. It should be noted that current Canadian Prime Minister Stephen Harper is a
member of the secretive Bilderberg group, whose global ambitions are closely aligned
with those of the CFR.
The CFR document calls for creating a North American preference so that
employers can recruit low-paid workers from anywhere in North America. No longer
will illegal aliens have to be smuggled across the border; employers can openly
recruit foreigners willing to work for a fraction of U.S. wages. Just to make sure that
bringing cheap labor from Mexico is an essential part of the plan, the CFR document
calls for a seamless North American market and for the extension of full labor
mobility to Mexico.
In an Internet post at RealityZone.com, entitled United States of North America,
University of South Carolina Upstate philosophy professor Steven Yates commented on
the plan, as follows: It would require that U.S. citizens effectively surrender their
citizenship in the independent constitutional republic founded in 1787. Yates reminds
readers that Mexican President Vicente Fox was quoted directly after his election in 2000
as saying his government would use all our persuasion and all our talent to bring
together the U.S., Canadian and Mexican governments so that in five or ten years, the
border is totally open to the free movement of workers. Yates also quotes Fox as telling
an audience in Madrid in 2002: Eventually, our long-range objective is to establish with

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Conspirati
Many American conservatives believe as a matter of faith that the Rockefellers and the
Council on Foreign Relations exercise absolute control over the government and the
people of United States. This thesis can be accepted as a working formula if one
remains conscious of the larger issues . ...
It is true that the American colonials have "free elections", in which they have the
absolute right to vote for one of two opposing candidates, both of whom have been
handpicked and financed by the Rockefeller syndicate. This touching evidence of
"democracy" serves to convince most Americans that we are indeed a free people . ... We
are free to invest in a stock market which the daily quantity, price and value of the
monetary unit is manipulated and controlled by a Federal Reserve System which is
answerable only to the Bank of England.
The realization that we do indeed live under the dictate of the "Rockefeller Syndicate" can
well be the starting point of the long road back of a genuine struggle for American
independence. In exposing "the Rockefellers" as agents of a foreign power, which is not
merely a foreign power, but a genuine world government, we must realize that this is not
merely a group dedicated to making money, but a group which committed to
maintaining the power of a colonial form of government over the American people . Thus
the ancient calumny of John D. Rockefeller as a man obsessed by greed (a category in which
he has plenty of company) obscures the act that from the day the Rothschilds began to
finance his march towards a total oil monopoly in the United States from their coffers at
the National City Bank of Cleveland, Rockefeller was never an independent power, nor does
any department of the Rockefeller Syndicate operate as an independent power .
Eustace Mullins

the United States, but also with Canada, our other regional partner, an ensemble of
connections and institutions similar to those created by the European Union.
Yates concludes by reminding readers clearly what some puzzled supporters of
President George W. Bush just dont seem to understand. [Bush] has long been a
proponent of amalgamating the United States with Mexico, and is an unabashed
proponent of regional integration as well.
Trilaterals
According to historian Patrick M. Wood, founder of the August Corporation,
the CFR has lost some power because in an increasingly global era it draws its

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membership primarily from North America. Wood has specialized for many years
in tracking another organization of the power elite, the Trilateral Commission,
which he claims has gained clout as the CFR has diminished. Along with professor
Antony Sutton, formerly a senior fellow at the Stanford University-based Hoover
Institution, Wood has written Trilaterals Over Washington Vol. I and Trilaterals
Over Washington Vol. II. By founding the Trilateral Commission in 1973, David
Rockefeller and Zbigniew Brzezinski acknowledged the shortcomings of the CFR.
According to Wood,
Rockefeller represented Corporate and Brzezinski represented
Academic. Together, they chose approximately 300 members from North
America, Europe and Japan, whom they viewed as being their birds of a
feather. These members were at the pinnacle of their profession, whether
Corporate, Academic, Political or Press. Both Brzezinski and Rockefeller
backed Jimmy Carter for president and used considerable political muscle
to advance his cause. Once inaugurated, Carter brought no less than 18
fellow members of the Commission into top-level cabinet and
government agencies.

The Trilateralists are organized around three arenas: corporate, political and
academic. Corporate creates the goals; academic the articles, studies and white papers;
while it is the responsibility of political to turn the proposals into reality via publicity
and legislation. Wood believes the press is not directly involved because it cannot
initiate, only report. However, he believes members of international corporations,
political leaders and academic executives sit on the various boards as directors of
major press organizations.
The Permanent Revolution Fabians
In the last few years another view of the above issues has emerged as a result of
Net posts by Terry Hayfield. These maintain, in one way or another, that Carroll Quigley
actually wrote Tragedy and Hope to deflect attention away from the real globalist
engine of world change the British Fabian Society. Hayfield believes that the Fabian
Society is an extant and powerful Trotsky-ite institution intent on promoting oneworld-ism via Leon Trotskys Permanent Revolution and the continuous process of War,
Revolution and Terror.
Hayfield sees the Fabian Society behind the CFR and affiliated organizations; he
also points out that the current American president, George W. Bush, is surrounded by
members of the CFR and has entered into a surprisingly strong alliance with the powerful
Fabian, Tony Blair. Hayfields contention is seemingly supported by a post (among others)

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from the London School of Economics (itself a Fabian institution).

The London Schools post A Piece of Fabian History Unveiled describes
the return of a famous stained-glass window designed by George Bernard Shaw in
1910. The Fabian window lost for more than 25 years was unveiled by Prime
Minister Tony Blair today during the centenary year of the Labour Party in its new
home, the Fabian-founded London School of Economics and Political Science. Now,
after a fascinating history, the window is finding a home in the heart of London at
LSE, the social science university institution founded by Sidney Webb, Beatrice Webb
and Shaw in 1895.
It is indeed remarkable that a stained glass window of this sort should be
unveiled by the prime minister of England within the confines of that countrys most
prestigious economic school. There is no doubt that the Fabian Society remains a
socialist organization. In fact, it describes itself on its Web site as the U.K.s only
membership-based left of centre think tank. Providing an arena for open-minded
debate, the Society's programme aims to explore the political ideas and the policy
reforms which will define progressive politics in the future.
Hayfield concludes that Tragedy and Hope was written to divert a wellmeaning, 1960s patriot movement that was gradually zeroing in on the Fabian
Society as the puppet master for the occupants of the White House. He believes that
Quigley is responsible for a massive derailing of the truth and that as a result, those
behind the current push toward globalism have never been properly identified.


Co n s p i r at i
There are layers upon layers involved in the global conspiracy, each connecting with
the others. At its most simple a network of interbreeding bloodlines going back to the
ancient world sit atop a pyramid of global power. They control and manipulate the
political system, banking, transnational corporations, media conglomerates, oil and
pharmaceutical cartels, the legal system and all the areas of society necessary to
control the people. They are the force behind the incessant centralization of power in
all areas of our lives and they want a world government, central bank, currency and
army that would dictate to a micro-chipped population. We are moving ever closer to
this by the day. Oh yes, and the whole thing takes place in the holographic version of
a virtual reality game that we call the world. But that would take more space to
explain than we have here.
Interview with leading Illuminati researcher
AboveTopSecret.com

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Had Tragedy and Hope not been published, that growing patriot
movement (highlighted by the 1964 Barry Goldwater presidential
campaign) might have focused on the Fabians. It is imperative for the
future existence of this Republic that the defenders of American
patriotism rebuke the lie of Tragedy and Hope and recognize the reality
of the Permanent Revolution. It is time to recognize American/British
Capitalism (under the guidance of the Fabian Society) is the true enemy of
this Republic. Patriots, release yourselves from the bondage of Cognitive
Dissonance, accept and include the reality of the Permanent Revolution in
your analyses of American history and the present reality.

Power Elite at Work in America

Hayfields contentions (and Ed Griffins too) are rooted in original sources
which is a good reason to mention them in a book containing information about the
elusive nature of what used to be called money power. Hayfield has certainly shed
further light on how modern money power seems to work though so much has come
out now via the Internet that the mechanism seems fairly evident even without the
addition of Fabian Trotskyism.
In the United States, a main driver of global governance and international free
trade has been David Rockefeller, along with the CFR and the Trilateralists who, like the
Fabians, actively seek a one-world order. Even the strategies of these organizations are
aligned. They use regionalism, the lumping together of nation-states into larger
geographical entities in order to achieve desired goals.
The trouble with this sort of global adventurism is that it is not subject to any
sort of checks and balances. It is being driven by the very wealthy who have either
inherited great riches or are self-made men enamored of their fortune-building abilities
and scornful apparently of most other sorts of skills. Wood writes, Collectively, they have
taken a self-induced quantum leap above national law, into an elevated position of
making their own rules as they go. We see some direct evidence of such an attitude, for
instance, when President Bill Clinton had no particular legal qualms (or consequences)
of giving (free or for money) top-secret missile technology to Communist China.
Wood is concerned about the inroads made into the highest reaches of power
by the Trilateral Commission. He claims it has taken over from the CFR in terms of
influence because it comprises representatives from Europe and the Far East as well as
America. The CFR remains mostly a United States-oriented group.
Wood sums up this way: Every bit of thirty-five years of research indicates that
there is a relatively small yet diverse group of global players who have been the planners
and instigators behind globalization for many decades. The primary driving force that

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moves this clique is greed; the secondary force is the lust for power. In the case of the
academics who are key to globalism, a third force is professional recognition and
acceptance (a subtle form of egoism and power). It is also important to understand that
core globalists have full understanding of their goals, plans and actions.
More Fabians
Unlike what FMNN commentator Ed Griffin has termed the Stalinist wing of
the globalist enterprise, the Fabian Society seems to believe in a relatively peaceful
transition to ever-greater internationalism. This sort of approach was also
recommended by Italian Marxist Antonio Gramsci who, once jailed, discovered,
according to alternative Net reporter Anthony C. LoBaido, that Italian peasants valued
their faith, family and nation more than increasing their economic status. They had no
Marxist class envy.They did not resent the rich Gramsci soon came to realize that the
culture of a nation (including novels, books, plays, newspapers, art, education, science
and other aspects), would have to be slowly taken over for a Marxist-Leninist revolution
to succeed. This is known as The Gramscian Strategy.
The gradualism of the Fabian and Gramsci schools would explain much about
how current events evolve on the sociopolitical and economic scene. Blair and Bush are
an unlikely pair to begin with Blair the thespian son of a doctor and Bush the
privileged Texas-bred heir of a powerful political family yet something has drawn
them together and remains a powerful magnet.
In addition to explaining the unlikely pairing of Bush and Blair, Fabianism also
explains the endless war for endless peace that has come to be an unfortunate but
distinctive element of Western culture. Hayfield writes, Society evolves slowly toward
social efficiency all by itself; society under stress, however, evolves much faster! Thus
the deliberate creation of crisis is an important tool of evolutionary socialists. Does that
help you understand the government school drama a little better, or the well-publicized
doomsday scenarios of environmentalists?
Hayfields list of Fabian-influenced enterprises and individuals is sweeping:
The London School of Economics was initially a Fabian creation. Rock
legend and lead singer for the Rolling Stones Mick Jagger spent time there;
so did John F. Kennedy. Once elitist, the Economist, now a worldwide popintellectual publication, is Fabian, as is The New Statesman and Ruskin
Labor College of Oxford. The legendary Royal Institute of International
Affairs and the Tavistock Institute for Human Relations, premier mindbending institutions of the world, are Fabian. Theodor Adorno, an
important if barely visible avatar of the therapeutic state, and a one-time
eminence at Tavistock, traveled the Fabian road as well. The United

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States, too, has its share of Fabian enterprises. Some organizations heavily
influenced by Fabianism are the Ford Foundation, the Russell Sage
Foundation, the Stanford Research Institute, the Carnegie Endowments,
the Aspen Institute, the Wharton School, and RAND. Tavistock
underwrites or has intimate relations with thirty research institutions in
the United States, all which at one time or another have taken a players
hand in the shaping of American schooling.

Guarantors of Rights
Hayfield has identified the International Democratic Union as the Fabian
Societys working group. Its homepage at IDU.org describes the organization this way:
The International Democrat Union (IDU) is the Freedom International, a working
association of over 80 Conservative, Christian Democrat and like-minded political parties
of the centre and centre right. The about page of the site elaborates on the founders,
which include Jacques Chirac, president of France, and former German Chancellor
Helmut Kohl.
The language and perspective of the IDU are peculiar for a centre right
organization. The Web page descriptions include such phrases as work towards evercloser co-operation among all the peoples of democratic nations International
Young Democratic Union a society of individuals working together in partnership
for the common good.
What is particularly disturbing to those who espouse Misesian-oriented freemarket principles is the Unions declaration that it is committed to the values of the
Universal Declaration of Human Rights, which is also the declaration on which the
United Nations is founded. The trouble with this declaration is that, unlike the
Declaration of Independence, it does not provide any authority for its statements.
Thomas Jefferson attributed the rights in the Declaration of Independence to a Deity
and wrote they were self-evident. The great Austrian economist Murray Rothbard was
always careful to ascribe freedoms to natural rights inherent in the human condition.
The Universal Declaration of Human Rights (UDHR), however, is vague about
the ultimate guarantor of the rights it is asserting. This has led to further clarifications.
The 1948 UDHR encompasses two major categories of human rights: civil and political
rights, and economic, social and cultural rights. But as the Human Rights Law Resources
page points out, During the course of drafting the International Bill of Rights, and in the
context of the Cold War, it was decided to address two categories of rights in separate
instruments. This resulted in the drafting and adoption by the U.N. General Assembly of:
International Covenant on Economic, Social and Cultural Rights, and International
Covenant on Civil and Political Rights.
The Human Rights Law Resources Web site describes the Preamble to both

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Covenants as emphasizing the interdependence of the two categories. The preamble

recognizes that, in accordance with the Universal Declaration of Human Rights, the
ideal of free human beings enjoying civil and political freedom and freedom from fear
and want can only be achieved if conditions are created whereby everybody may enjoy
his civil and political rights, as well as his economic, social and cultural rights
The site also explains that Economic, social and cultural rights, are positive or
distributive rights; an active response is required by the State to devise and implement
strategies and programs and to commit resources to promote the progressive

This is a black-and-white replica of the famous stained-glass window that

served as a kind of iconic centerpiece for the Fabian movement. Notice the wolf
in sheeps clothing in the crest in the upper right.


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realization of economic, social and cultural rights. It is no longer accepted wisdom that
any clear distinctions can be made between the two categories of human rights. Both
categories entail legal obligations on the part of States. Issues of measurability arise in
relation to both.
A number of additional declarations have seemed necessary to affirm human
rights. The Human Rights Law Resources pages lists several of them, concluding with,
The Vienna Declaration and Programme of Action, adopted on June 25, 1993 at the
World Conference on Human Rights, by consensus, by representatives of 171 States.This
declaration states in part that, All human rights are universal, indivisible and
interdependent and interrelated. The international community must treat human
rights globally in a fair and equal manner, on the same footing, and with the same
emphasis. While the significance of national and regional particularities and various
historical, cultural and religious backgrounds must be borne in mind, it is the duty of
States, regardless of their political, economic and cultural systems, to promote and
protect all human rights and fundamental freedoms.
We can see the problem clearly here. It runs through every single human rights
declaration of the 20th century, including the failed, 300-page European Union
constitution: The question, who will guarantee the duty of the states to enforce
universal human rights? is never answered anywhere in thousands of pages of
declarations and explanations of declarations.
Problematic Histories and Atheist Revisions
We have examined 20th century organizations set up by the power elite also
its attempts at configuring rational entities to ensure the rights of man. The conspirati,
however, would waste little time on such rights, being at least partially of the opinion
that most secret societies are more concerned with their own. Certainly, there are many
societies from which to choose, going back in time: the Knights Templar, Masons,
Freemasons, Illuminati, and many additional secret groupings, fraternities (Skull and
Bones) and mysterious subcultures.
There is plenty of commentary stitching these various groups together
under the rubric coined by conspiracy historian Noah Webster, the Occult
Theocracy. However, an interesting post by the Atheist Societys Conrad Goeringer
takes us in the opposite direction. It is Goeringers contention (and the Societys as
well, it seems) that many of the accusations aimed at the ancient mystery orders such
as the Masons and Illuminati were actually leveled by proponents and agents of the
Roman Catholic Church.
Goeringer takes the Illuminatis founder Adam Weishaupt at his word. He
points out that it is perfectly possible the secrecy that Weishaupt employed was due to

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the enormous power of the Roman Catholic Church at the time. Also, being Jesuittrained, it is understandable that Weishaupt would have formed his society along
ecclesiastical (Jesuit) lines. Nor, from Goeringers point of view, is there anything
unordinary about Weishaupts Rousseauian vision as such an infatuation of a
young man at the time would have been quite understandable. Rousseaus vision of the
noble savage, communing with nature in a state blissful, rural freedom, attracted an
enormous following in Europe, and Weishaupt would not have been alone in being
enamored of him, and it.
For Goeringer, Weishaupts efforts were both noble and doomed, and in fact
contain a tragicomic element. Weishaupt wrote to [a fellow Illuminatus] Cato in
August, 1783: I am deprived of help. Socrates, who would insist on having a position
of trust amongst us, and is really a man of talent, of the right way of thinking, is
certainly drunk. Augustus' reputation could not be worse. Alcibiades does nothing
but sit all day long with the vintner's pretty wife and spends his whole time in sighing
and pining with love. Tiberius attempted to ravish the wife of Democides, and her
husband took them in the act.
Nor does Goeringer believe that the Illuminati survived the ban that the
Bavarian government leveled against the secret society when its existence came to light.
Goeringer may be correct in his analysis of the historical Illuminati. Certainly
it solves puzzles having to do with occult interests of founding fathers such as George
Washington, Benjamin Franklin and Thomas Jefferson. These men and their
compatriots were steeped in both Reformation and Enlightenment sympathies and
they no doubt looked with disfavor on what Goeringer calls the American states
feudal theocracies.
According to Goeringer, each colony had, in effect, an established and taxfunded Christian church. In Virginia, there were laws that provided the death penalty
for speaking against the divinity or tenets of the Christian faith. Delaware prohibited
anyone who was not a believer in Trinitarian Christianity from holding a public office.
South Carolina officially declared the Christian protestant form of superstition to be
the established religion of the State, adding: That God is publicly to be worshipped
and That the Christian Religion is the true religion. The founding fathers with their
deistic persuasions no doubt looked with disfavor on the constant feuding within
assorted Christian sects, each of which sought dominance over the others. One can also
find that these prominent deists and skeptics were often Freemasons, among them
Franklin, Washington and Jefferson.
Revolutionary America was a period of official disestablishment of the
assorted state religions. Virginia enacted a Declaration of Rights on June 12, 1776, which
provided for free exercise of religion, and not favoring any one religious sect. That

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same year, state religions were disestablished in Delaware, New Jersey and Pennsylvania;
in 1777, New York, Georgia and North Carolina followed suit. Local and state laws against
theatre were repealed, along with censorship laws.
Modern Conspiracy, Bilderbergs and China
Grant that Goeringer is right about a tragicomic Weishaupt and his wellmeaning utopian vision. Does it mean that other more modern, open conspiracies do
not exist? Rhodes many wills are real, are they not? His scholarships are real. As is
Quigleys 1,000-page tome, along with a companion book that traces the history of the
Anglosphere convincingly, whether or not he sought to throw off suspicion about the
Fabianists as part of a larger effort. (And, anyway, it strains credibility to believe that
Quigley wrote two books at enormous personal and professional cost merely to provide

R ea l i t y B y t e :

S om e Vi s i bl e E l i t e s T h e i r O w n Wor d s

The Council on Foreign Relations is a nonpartisan and independent membership

organization. Throughout the year, we hold a variety of meetings at which world leaders,
government officials, academics, and other foreign-policy specialists discuss and debate
world affairs. Transcripts of on-the-record meetings are available here. The Council is also
home to a highly regarded think tank, whose fellows conduct research on international
subjects ranging from national security to childrens issues. See CFR.org

The Fabian Society has played a central role for more than a century in the development
of political ideas and public policy on the left of centre. Analysing the key challenges facing
the U.K. and the rest of the industrialised world in a changing society and global economy,
the Society's programme aims to explore the political ideas and the policy reforms which
will define progressive politics in the new century. See FabianHome.com

The Trilateral Commission was formed in 1973 by private citizens of Japan, Europe
(European Union countries), and North America (United States and Canada) to foster
closer cooperation among these core democratic industrialized areas of the world with
shared leadership responsibilities in the wider international system. The growing interdependence that so impressed the founders of the Trilateral Commission in the early
1970s is deepening into globalization. The need for shared thinking and leadership by
the Trilateral countries, who (along with the principal international organizations)
remain the primary anchors of the wider international system, has not diminished but,
if anything, intensified. See Trilateral.org


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false leads to the John Birch Society. )

The most modern incarnations of what the constitutionalist/republican John
Birch Society has called the open conspiracy also include very powerful meetings of
global groups such as the Bilderbergs. These conventions are difficult to catalog within
the parameters of Quigleys identifiers, but they are no less compelling examples of
modern money power. It is possible that the Bilderbergs, a European-initiated
convocation of the power elite that meets just once a year, is an offshoot of some other
conspiratorial element or organization. But many of the faces are the same and the
discussions seem along the same lines as well.
Something is going on. Consider the half-century of global sociopolitical and
economic consolidation presented herein and the urge to label it as something beyond,
or outside of, the norm becomes nearly irresistible.


Chatham House [Rhodes British Round Tables] is one of the worlds leading
organizations for the analysis of international issues. It is membership-based and
aims to help individuals and organizations to be at the forefront of developments in
an ever-changing and increasingly complex world. Founded in 1920, and based at
Chatham House in London, the Institute works to stimulate debate and research on
political, business, security and other key issues in the international arena. The
Chatham House Rule, famous worldwide for facilitating free speech and confidentiality at meetings, originated here. See Chathamhouse.org.uk

The Club of Rome has decided to adopt a global perspective, to seek a deeper
understanding of interactions within the tangle of contemporary problems, to suggest
effective solutions and to take a longer term perspective in studies than governments
do. Environment is one of the main concerns of the Club of Rome, expressed in its first
Report Limits to Growth in 1972, one of its main focuses. Mostly man-made damage to
nature has expanded to such an extent that it might put at stake the very survival of
Humankind. It is the responsibility of each government, but also of each individual,
to act in order to eradicate the macro-pollutions which are affecting water, air and earth
and endangering the health of human beings. The population explosion has been
spectacular for the last century: The impact of this demographic growth has had
tremendous consequences on environment, employment, health, food and water
availability. See ClubofRome.org
Bilderberg Group: No Web site, no description. But the conspirati are glad to oblige.


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In doing so we can refer to a growing body of literature that gives information

about why globalismand international entities might be attractive to the power elite for
reasons that have little to do with the uplifting of the human condition. One such book
that caused a stir recently is Confessions of an Economic Hit Man, which, according to
the literature, has sold more than 150,000 copies and is a New York Times best-seller.
According to author John Perkins, Economic hit men are highly paid
professionals who cheat countries around the globe out of trillions of dollars. Their tools
include fraudulent financial reports, rigged elections, payoffs, extortion, sex, and
murder. They play a game as old as Empire but one that has taken on terrifying
dimensions during this time of globalization.
This is interesting because we begin to sense that the gigantic, humanitarian
mechanism of globalism does indeed have another, more sinister purpose. Perkins
writes that though he supposedly worked for a number of international corporations
over his career, in actuality he was working for the U.S. National Security Agency. It was
his job, by any means necessary, to convince foreign governments to accept loans from
the World Bank, the IMF and other such global entities to build the support, the
complex, unnecessary infrastructure that the governments of these countries could
not support. Often the deals included the services of American corporations so that the
funding from the IMF never even reached the company involved but went directly to
the Unites States. The capital flows, though enormous, were casually handled by wire;
corruption was endemic, bribes to higher-up country officials were commonplace.
Once the government in question was broke, the global banking bureaucrats
would step in to begin dictating terms. Often certain country assets, up to and including
the basics such as water rights, might be sold off privately not surprisingly to
American corporations. Taxes would be raised and services cut. Eventually, though, the
bill would have to be paid and the countrys now increasingly impoverished citizens
would have to reach into their pockets to fund higher taxes alongside a much
diminished living standard. It was, according to Perkins, a clever way for America to gain
control over a countrys resources for its private sector while extending military and
political hegemony throughout the Third World.
Global Age
What is startling about Perkinss book is the degree to which American citizens
are uninformed about their own governments practices and what is done in their
name. The extent of Madonnas piercings and tattoos are well catalogued, but an
understanding of how the world really works and the United States role in it is severely
limited among U.S. citizens.
The highlights that follow provide an eye-opening summary of a global

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evolution the power of which has not been fully communicated to ordinary Western
citizens. Is it so hard to gather facts and put them together? The mainstream press
obviously finds it difficult. But for the enterprising Net reporter Joan Veon, who
compiled the information from which this list is drawn, it was not.
1947 The WTO: United States signs the General Agreement on Trade and
Tariffs, which became the World Trade Organization in 1994.
1947+ Global superstructure erected: Formation of the International
Monetary Fund/World Bank, United Nations. The International Criminal Court creates
an increasingly borderless world.
1971 U.S. regional government: President Richard Nixon issues Executive
Order No. 11647, which divides the United States into 10 regions, each with its own
administrator who then reports directly to the president. Described as metro
governmentor regional government,it apparently centralized decision-making in the
White House.
1990 Emergence of PPPs: Prince Charles, Prince of Wales, creates the Prince
of Wales International Business Leaders Forum, supporting public-private partnerships
(PPPs) between governments, business and non-governmental organizations. Basically,
public-private partnerships provide a way for corporations to become co-managers
with government in policy-making.
1992 U.N. Rio Earth Summit: 30,000 attendees agree to Agenda 21
demanding that the earths resources be controlled, and monitored for future
generations.Fifteen years later, sustainable developmentis carried out worldwide. One
of the treaties encompassed in Agenda 21 is the U.N. Biological Diversity Treaty calling for
much of the planet to be rewilded. Movement spawns New Urbanism, also known as
Smart Growth.
1994 NAFTA: The controversial North American Free Trade Agreement wins
U.S. congressional approval. Some 1,000 pages long, it is obviously a managed trade
document rather than a free-trade one.
1995 In Our Global Neighborhood is published by the Commission on
Global Governance: Looks forward to a time when regionalism becomes more
ascendant worldwide, and [the United Nations] must even help the process.
1997 Maryland legislature approves Smart Growth legislation: Designates
areas of growth that a state will allow infrastructure to be developed. With this legislation,
Maryland basically becomes the first state in the union to approve the U.N. Biological
Diversity Treaty.
2000 United Nations overhaul: More power granted to the secretarygeneral and the General Assembly, including the right to a rapid defense force. United
Nations unveiled the Millennium Development Goals to reduce poverty, hunger and
disease worldwide.

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2002 250 PPPs formed at the World Summit for Sustainable Development:
Unprecedented activity on a vast scale. The Congo Basin Forest Partnership alone
involves 14 governments and includes the Unites States and eight African countries,
eight environmental groups along with the American Forest and Paper Association,
which represents 200 companies. The partnership affects 74 million acres in Africa.
Others include partnerships to manage schools, sewer systems, transportation, water,
utilities, etc. The proposed U.S. Trans Texas Corridor, a superhighway running from
Canada to Panama will be supervised by a PPP.
2004 Global tax proposed: The Group of Eight meeting in Sea Island, Ga.,
and then at the 2005 World Economic Forum in January, planned a global tax to aid the
poor. In an annual meeting in Davos, Switzerland, French President Jacques Chirac
specified a tax on airline tickets. Just before Christmas 2005, the French government
passed a levy tax on such to generate $236 million a year for health programs aimed at
helping the worlds poorest countries.
2005 CAFTA follows NAFTA: More controversial even than NAFTA, the
Central American Free Trade Agreement comes to the floor of the Congress and is
narrowly passed. The bill is more of the same managed trade and is fairly obviously
aimed at opening up not only markets between the United States and Central America,
but in splintering natural economic barriers that exist between the two regions.
Opponents claim that both CAFTA and NAFTA are actually aimed at furthering the global
power elites goal of combining nations into trade regions for the ultimate purpose of
advancing sociopolitical and economic internationalism. Because of the opposition to
this bill, President Bush makes a special trip to Capital Hill to twist arms,granting more
than 6,000 pork barrel requests in the process. NAFTA and CAFTA are not directly related
to the Free Trade Areas of the Americas (FTAA), which involves all 34 countries in the
Americas and is being implemented gradually.
2005 Kelo vs. New London: U.S. personal property rights were dealt a severe
blow with a Supreme Court ruling that local governments have the right to use eminent
domain as they see fit for the public good.
2005 New Urbanism in the United States: Mississippi Governor Haley
Barbour brings together a team of 110 urban planners in architecture, regional and
community planning, civil and transportation engineering, environmentalism, codes
and laws, retail, economics, public process and communication to restructure 11 coastal
cities and 120 miles of coastal region.
Basic Schism
Weve covered a great deal of ground, but let us retrace our steps and conclude with
a few more words about the two different versions of power-elite history on the Net.

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It may be possible, as some hold, that Rothschild money manipulations do

indeed date back to Babylon. And it may be that the CFR is nothing but a talking shop. It
may even be that the John Birch Society is one more example of the thesis-antithesis
paradigm that the global power elite apparently likes to use. The trouble with opening
up the door to this kind of information, as accurate and or provocative as it may be, is
that proof is hard to come by. When it comes to the so-called visible power elite, the
evidence is far less murky. The Bilderbergs, for instance, do meet every year. The CFR,
Trilateralists, British Round Tables, Rhodes, his will, etc. are all factually verifiable.
The basic schism may have to do with Illuminati/Freemasonry. While much is
presented as regards these groups, little is perfectly proven. Of course, power is in the
hands of many who are not evident on any world stage. Perhaps there is a formal
Illuminati. Perhaps there is regularized child abuse, child sacrifice, black magic, etc. Or
maybe the reality is slightly more mundane, though hardly less worrisome that
extremely wealthy and powerful people seek to create global government to generate
greater and more controllable business opportunities and implement wealth gathering
strategies. That is reason enough to study it, and to propose conclusions.
Club of Rome
Yet another member of the visible elite seems to illustrate a different kind of
schism within the visible power elite. The Club of Rome is an emphatically European
power elite organization that does not seem to fit directly into the Anglosphere model.
Also, this group seems more focused on a single area population and consumption
reduction than some of the other visible power elite organizations.
The Club of Rome represents what may fairly be called the dark side of the
visible power elite. In Environmental Genocide, July 2001, posted at
TheNewAmerican.com, William F. Jasper documented the power elites involvement,
including the Club of Rome in passing the United Nations Convention on Persistent
Organic Pollutants. Known as POP, the convention greatly restricted the use of DDT
(dichlorodiphenyltrichlorethane), a pesticide that has proven to be a veritable godsend
to mankind, even as it has been subjected to a campaign of vilification over the past
four decades.
Jasper predicted that the passage of POP would be a virtual death sentence for
some of those living in Third World areas where malaria was common. Notwithstanding
DDTs success in wiping out malaria, POP made the use of DDT so expensive for Third
World countries that other substances have been substituted to date, mostly ineffective.
Jaspers article blamed the CFR, Trilateral Commission and a variety of CFRdominated, tax-exempt organizations such as the Sierra Club for helping to
generate POP, but his article also went into some detail about the Club of Romes

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Co n s p i r at i
To achieve world empire, as Prince Philip has admitted, 80% of the world population
must be eliminated within two generations. Over four billion people are to die to realize
the Windsor/Club of the Isles New Dark Age! Treat this report as a combat manual for a
war against the British Empire. The survival of all nations, and billions of human beings,
depends on victory over this new empire, and that victory begins with knowledge of the
nature of the enemy.
1997 post at The American Almanac,
The Largest Empire In the History of the World

involvement. Consider Maurice Strong, for instance, billionaire honcho at the

World Economic Forum and the Club of Rome and secretary-general of the
United Nations Earth Summit. It was Strong who welcomed Cousteau,
Gorbachev, and Castro to Rio and elevated them to demigod status in the United
Nations green pantheon. At the Earth Summit, Strong deplored the worlds
explosive increase in population, and warned, We have been the most
successful species ever; we are now a species out of control. He thundered:
Population must be stabilized, and rapidly.
Jasper adds, Just prior to the Earth Summit, the Club of Rome, in which
Strong has been a prime mover, had issued its startling report, The First Global
Revolution. That report declared: In searching for a new enemy to unite us, we came
up with the idea that pollution, the threat of global warming, water shortages,
famine and the like would fit the bill. All these dangers are caused by human
intervention. The real enemy, then, is humanity itself.
In a follow-up article about the POP-generated DDT reductions, February
2005, author Dennis Behreandt also mentioned the Club of Rome: Economist and
syndicated columnist Walter Williams notes that Alexander King, founder of the
Malthusian Club of Rome ... deplored DDTs lifesaving capabilities. In a 1990
biographical essay, King wrote: My own doubts came when DDT was introduced. In
Guyana, within two years, it had almost eliminated malaria. So my chief quarrel
with DDT, in hindsight, is that it has greatly added to the population problem.
Paranoia and the Power Elite
In fairness to the conspirati, when statements such as these are made, the
idea that the visible power elite (never mind the invisible elite) has in mind some
form of radical population reduction becomes less far out and more frighteningly

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immediate. It is also an unfortunate fact that both the European and American
elite have a historical fascination with eugenics and have endowed a number of
think tanks and research facilities focusing on this area. The funding and scientific
pursuit continues today.
Also, when buildings are unveiled, such as that of the Supreme Court in
Israel, reportedly designed secretly by the Rothschild banking family without the
involvement of the Israeli government, paranoia is apt to move even higher.
What is one to make of all this occult symbolism apparently built into
Israeli state buildings and bluntly worded statements about radical population
depletion? From an investment-strategy standpoint, skepticism is at least an
option. After all, if the visible power elite is evaluated even cursorily, one
element immediately strikes home: It is composed of busy business people with
vast wealth and formidable industrial interests. Destroying part or most of the
customer base (at least in the West) would seem to be bad for business, at the
very least. In any event, it might be considered poor investment strategy to plan
on a wholesale reduction even with the backdrop of a supposed bird-flu
mutation into a 21st century version of the 1920s killer influenza. (More on
power-elite investment strategy toward the back of High Alert where VESTS
and its subsidiary approaches are presented.)
Storm Warning
The sociopolitical confrontation intensifies. Fears of Net alternativenews and even the conspirati seem to be pushing forward modern money
powers globalist agendas at a dangerous pace. The manipulation of the
economy, the rise of central banking, the sociopolitical machinations leading to
quasi-controlled wars, these were bad acts before the Net allowed for
discovering and monitoring. But yesterdays bad acts are todays front-page news,


Co n s p i r at i
One of George W. Bush's thinkers is Richard Perle. I interviewed Perle when he was
advising Reagan; and when he spoke about total war, I mistakenly dismissed him
as mad. He recently used the term again in describing America's war on terror.No
stages This is total war. If we just let our vision of the world go forth, and our
children will sing great songs about us years from now.
HiddenAgendas.com, by John Pilger

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courtesy of the Net, which will relentlessly cover a story until the mainstream media
finally picks it up.
For those who are able to internalize what is being written here, the next step
suggests itself along with the possibility of significant profit. Simply watch what they
do. Observe the messages they send, the regions to which they are sending their banking
executives, the kinds of problems that become generally recognized by their endless
exposure within the media. Identify the next dominant social theme and you can
become rich as surely as if you just met a young Bill Gates and, impressed by his
youthful enthusiasm and competitive spirit, decided to invest a bundle in a tiny West
Coast company called Microsoft.
Economic Action Alert
Monitor the global power elite and its dominant social themes. Power is in
the hands of many who are not evident on any world stage. The media will not cover

Israeli Supreme Court building funded, designed and built by the Rothschild
family. Israeli officials were not allowed to approve of the plans and the
construction was carried out in secret. Building is said to include numerous
occult symbols, including the pyramid in the upper-left-hand portion of this
photo. Why this sort of building at this time in this place?

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E l i t e R e t r eat
It was a brutal battle on the floor of the U.S. House of Representatives. Complete with
arm twisting, badgering, and backroom deal making, the final vote landed in favor of
the Central American Free Trade Agreement (CAFTA). At 12:03 a.m. on Wednesday, July
28, the pro-CAFTA forces pushed through a razor-thin victory of 217-215. Designed to
bring about continued job loss, increased illegal immigration but more importantly
the continued erosion of American independence to a faceless international
bureaucracy, CAFTA is simply the dress rehearsal for a larger and more destructive
agreement: the Free Trade Area of the Americas (FTAA). The FTAA, if passed, will
encompass 34 countries of the Western Hemisphere, and has been correctly referred to
as NAFTA on steroids. However, there is great reason to be optimistic. This hardfought CAFTA battle, even in defeat , has greatly improved our chances for defeating the
FTAA. The closeness and fierceness of the CAFTA battle points to the growing
opposition to these free trade pacts. Now the momentum is swinging our way.
Jbs.org, June 2005

them. You will not know them. The best solution is monitoring its activities and
following its lead. Get to know publications and Net sites that make a habit of following
the ins and outs of money power. Use the services they use. Watch the trends they are
setting, the countries they are making inroads into, the sectors and products in which
they are investing. Follow mainstream government sanction and fear campaigns. Look
for the inevitable power-elite solutions to the very fears it promotes.

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4
How the power elite ruins lives for fun and profit.

SPOILS OF WAR
The Ministry of Truth Minitrue, in Newspeak was startlingly different from
any other object in sight. It was an enormous pyramidal structure of glittering white
concrete, soaring up, terrace after terrace, 300 metres into the air. From where Winston
stood it was just possible to read, picked out on its white face in elegant lettering, the three
slogans of the Party: War Is Peace, Freedom Is Slavery, Ignorance Is Strength.
Chapter One, George Orwell, 1984
High Alert
Are wars avoidable? And are they often prosecuted not for sociopolitical and
economic reasons, but to make a few extraordinarily wealthy individuals, groups and
corporations even wealthier? There has been plenty of speculation, for instance, that the
ratcheting up of tensions between the United States and Iran had as much to do with the
creation of an Iranian bourse, which trades oil for non U.S.-currency and commodities,
as it does Irans nuclear ambitions. Saddam Hussein, many on the Net have pointed out,
started trading oil for euros just before the American invasion.
Criticisms of the current geopolitical scene go far deeper than this, however.
Critics such as Michael Meacher, former U.K. environmental minister, who published
The War on Terrorism Is Bogus, believe that Americas current state of national high
alert is aimed more at cowing its own citizens than those across the sea. The tenor of
these arguments have remained the same for years. One can find them in the
literature dealing with World wars I and II, and even the Korean and Vietnam wars.
Much of the more extreme criticism is offered up today by the
conspirati, some of whom believe that additional inevitable wars in the near

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future are meant to tear at the fabric of nation-states and speed up the New
World Order.
From Surplus to Deficit
When President George W. Bush was elected in 2000, the United States was
out of deficit and at peace. Now the countrys debt has swelled. It is active militarily on
several fronts overseas, with yet another crisis looming in the Middle East in the form
of Iran, which has just formed a stock-and-oil bourse. This could well be another factor
in the increased tension between the two countries. Currently, the U.S. dollar is known
as the petrodollar because Middle Eastern oil-rich nations only do business in dollars.
But as was pointed out in a special report, Iran in the Crosshairs, by international
blogger-commentator Ryan McGreal, such a bourse facilitate[s] oil purchases in
currencies other than the U.S. petrodollar.
Explains, McGreal, While this may seem innocuous, it [poses] a grave risk to
continued American global hegemony. Iraq was invaded after Hussein publicly
switched oil sales from dollars to euros. In fact, as McGreal points out, one of the very
first economic actions by the United States after the initial takeover was to switch the
sale of Iraqi oil back to dollars.
It is never clear what motivates the actions of elected or appointed officials at
the top of an economy as complex as that of the United States. However, the Bush
administration would not be in the position of having motives questioned were the
currency healthy. Its the dollars weakness that has led countries and they are not all
in the Middle East by any means to consider other monetary avenues.
One reason that anti-Americanism is apparently rising around the world is
because people in other countries can see more clearly than U.S. citizens, how often the
United States uses military muscle to inflame secular and religious tensions. Such
confrontations allow the United States to use the one clear advantage it has left: military
might. Conveniently, tensions abroad tend to distract citizens at home from the
administrations seemingly irrational, and often damaging, domestic agenda, the failing
economy, the hollowed-out industrial sector. The violence, or impending violence, can
be useful in encouraging patriotic sentiments as well.
War is the health of the state, free-market commentator Randolph Bourne
wrote in a great unfinished essay just before his death in 1918. With the shock of war
the State comes into its own. The Government, with no mandate from the people,
without consultation of the people, conducts all the negotiations, the backing and
filling, the menaces and explanations, which slowly bring it into collision with some
other Government, and gently and irresistibly slides the country into war. For the
benefit of proud and haughty citizens, it is fortified with a list of the intolerable insults

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which have been hurled toward us by the other nations; for the benefit of the liberal and
beneficent, it has a convincing set of moral purposes which our going to war will
achieve.
The Bush administration certainly came into its own after 9/11. It did indeed
conduct all the negotiations [with Pakistan at the time] which gently and irresistibly
slid the country into war. Certainly it was fortified with a list of the intolerable insults
hurled toward America by Osama Bin Laden, who apparently produced both audio and
video threats from his cave. Finally, the administration was able to offer a convincing
moral purpose which going to war will achieve.
And thus it occurred, gently and irresistibly. Off went adolescent American
soldiers to Afghanistan, looking to capture or kill the former CIA asset and terrorist,Bin
Laden whose family was a longtime business partner of the Bushes. Then into Iraq,
looking to capture or kill the former CIA asset and modern-day Adolf Hitler, Saddam
Hussein. Now war games are said to involve resistance that might be offered by Iran and
its current president who has been compared by Bush to surprise a MiddleEastern Hitler-in-the-making.
Manipulation, Identified?
As mentioned above, late in 2003, Michael Meacher, former U.K. environmental
minister, published The War on Terrorism Is Bogusin the Guardian newspaper. In it, he
claimed the real reason for Americas Middle Eastern wars may have been a blueprint
for the creation of a global Pax Americana drawn up for Dick Cheney (now vicepresident), Donald Rumsfeld (defence secretary), Paul Wolfowitz (Rumsfelds deputy), Jeb
Bush (George Bushs younger brother) and Lewis Libby (Cheneys chief of staff). The
document, entitled, Rebuilding America's Defences, was written in September 2000 by
the neoconservative think tank, Project for the New American Century (PNAC).
The crux of the article is Meachers statement that, The plan shows Bushs
cabinet intended to take military control of the Gulf region whether or not Saddam
Hussein was in power. It says while the unresolved conflict with Iraq provides the
immediate justification, the need for a substantial American force presence in the Gulf
transcends the issue of the regime of Saddam Hussein. He adds,
The PNAC blueprint supports an earlier document attributed to
Wolfowitz and Libby which said the U.S. must discourage advanced
industrial nations from challenging our leadership or even aspiring to a
larger regional or global role. It refers to key allies such as the U.K. as the
most effective and efficient means of exercising American global
leadership. It describes peacekeeping missions as demanding American
political leadership rather than that of the U.N. It says, even should

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Co n s p i r at i
In 1859, Albert Pike, who was fascinated with the idea of a one-world government,
was chosen to coordinate Illuminati activities in the United States. He said they
needed to create a political party that would keep the world fighting, until they
could bring peace. Pike said it would be done with tongue and pen, with all our
open and secret influences, with the purse, and if need be, with the sword. The
First World War must be brought about in order to permit the Illuminati to
overthrow the power of the Czars in Russia and of making that country a fortress of
atheistic Communism. The Second World War must be fomented by taking
advantage of the differences between the Fascists and the political Zionists. The
Third World War must be fomented by taking advantage of the differences caused
by the agentur of the Illuminati between the political Zionists and the leaders of
the Islamic World.

TheTruthSeeker.com

Saddam pass from the scene, U.S. bases in Saudi Arabia and Kuwait will
remain permanently as Iran may well prove as large a threat to U.S.
interests as Iraq has. It spotlights China for regime change, saying it is
time to increase the presence of American forces in SE Asia. Written a
year before 9/11 it pinpoints North Korea, Syria and Iran as dangerous
regimes, and says their existence justifies the creation of a worldwide
command and control system. This is a blueprint for U.S. world
domination.

What is disheartening for someone like myself, a Canadian who has lived in
America for many years, on and off, is that while U.S. officials preach non-violent
diplomatic engagement, they are in actuality quite willing to use violence to gain policy
objectives. Khalid Mishal, head of the political bureau of Hamas, the violent but dulyelected Palestinian political party, had this to say in a January 31, 2006 editorial in the
British Guardian: The day Hamas won the Palestinian democratic elections the worlds
leading democracies failed the test of democracy. Rather than recognize the legitimacy
of Hamas as a freely-elected representative of the Palestinian people, the U.S.
threatened the Palestinian people with collective punishment for exercising their right
to choose their parliamentary representatives.
India is not a signatory to the nuclear Non-Proliferation Treaty but the Bush
administration is using India as a counterweight to Chinas growing influence in the
region, and is not averse to bending some rules. In a November 3, 2005 interview in the

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Council on Foreign Affairs magazine, arms control expert Lawrence Scheinman pointed
out the contradictions of such actions, saying the administrations pursuit of a trade
agreement with India rubs up against the longstanding policy that we have had on
nuclear proliferation. But the Bush administration is eager, apparently, for Chinas

R ea l i t y B y t e :
War is for Lower Orders ...
A recent well received book Before the Dawn, by Nicholas Wade, a New York Times
science writer, makes a case for evolution that would seem by many measures to be
sensible, if still debatable. In the book, which seems to be this centurys Naked Ape, he
brings together the current science of evolution which is focused a great deal on DNA
mapping of the species. What seems evident from Wades writing is something that
others have speculated on for years that there are two kinds of evolutionary processes
In the first process, fauna is on the edge of extinction and any survival traits are quickly
spread throughout the remaining population. The second kind of evolution seems to be
a sort of genetic drift in which certain favored traits over time are simply exaggerated.
One such drift is sheer size which would explain why some dinosaur species seem to
have trended ever-larger over hundred of thousands or millions or years. In the last
50,000 years, humans have likely been growing both less robust and taller, even as brain
size has been expanding. What does this mean, practically? That humankind may be
evolving away from the endless, active warfare of prehistory.
According to Wade, one of the dirty secrets of anthropology is how violent-seeming was
humanitys past. He points out the prevalence of hand-axes that have been discovered
at stone-age sites and how anthropology has remained vague on their usage. Obviously,
Wade suggests, so many hand axe were not simply for curing leather or cutting fishing
line; an axe is an axe a weapon of war. Wade backs up this line of logic with physical
evidence. The skeletons of our ancestors bear marks of great violence, bones broken and
rebroken, etc. While some of this might be explained by hunting accidents, the sheer
number of physical injuries would seem to lend credence to the hypothesis that
humanitys inter-tribal relationships were market by a series of almost constant
skirmishes and worse.
Now all that may be changing. Over time, humans have become more peaceable and
tamer, according to Wade. The human race is pacifying itself. Stocky, smaller humans,
rugged and violent, have given way to a less thick, less sturdy, gracile type with still-


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leaders to know that numerous nuclear weapons are shortly to be pointed in their
direction, or at least can easily be brought to bear.
Contrast the position of Americas leaders as regards India with Iran its
nuclear ambitions and recently configured oil bourse. Iran may want to possess

evolving brains. According to Wade, this may account for a kind of instinctual certainty
shared by many (despite affectations of doom) that humanity is making progress.
Despite the above analysis, controlled war seemingly continues to be a preferred
economic weapon in the early 21st century. What is the evidence of this? Wars are often
apt to happen on an economic downstroke. The First World War, largely manufactured in
the eyes of many, came as the old economic order was dissolving. The Second World War
arose from the first and was fairly obviously used to set up the seeds of global
government via the establishment of the United Nations, etc. Most wars, regardless of
their stated reasons, can be seen as operating on behalf of an agenda that is ultimately
sympathetic to the money power.
Free-market thinkers are well aware that those who wish to move mainstream society
toward radical leveling and strong-man politics often attempt to do so via social upset,
including, importantly, war. It is also apparent that the global money elite has reasons to
create political tension, if not outright war, between various nation-states in order to
impose further international solutions and build out global governance. Finally, it may
not be coincidence that the advent of nuclear weapons coincided with the final world war,
World War II. Nuclear weapons have made it much more difficult to wage world war.
Bereft of the ability to wage world wars, nation states have conducted endless, bloody
skirmishes. However, it is questionable as to whether such regional warfare has the
convulsive effect of a world war.
The Internet and the advancement of science show clearly that the way to progress and
a civil society is through peace, not war. Those who seek to use war as a weapon of
sociopolitical change may come under increased pressure in the 21st century. Their
subterfuges will surely become greater, at any rate. The insistence on regional warfare as
a just and noble enterprise when engaged in by the West will also likely come under
additional scrutiny. Nicholas Wades important book has provided anti-war free-market
thinkers with an entirely new platform for their arguments. Not only is war divisive and
likely engineered by money power making many miserable and enriching a few it now
can be seen as a behavior that humankind is evolving away from.
Anthony Wile, August 2006, FMNN


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nukes, but the United States already has them and is apparently considering using
tactical bunker busters to blow up the machinery of Irans nuclear program.
According to the UK Telegraph: The Bush administration is planning to use
nuclear weapons against Iran, to prevent it acquiring its own atomic warheads. ...
President George W. Bush is said to be so alarmed by the threat of Irans hard-line
leader, Mahmoud Ahmedinejad, that privately he refers to him as the new Hitler.
While such a scenario seems unlikely as this book is being finished, the Bush
administration has proven perfectly willing to use Americas vast military arsenal
in the past, and there is no guarantee that it will not do so again in whatever
manner it chooses.
Conflict, No Option?
China, currently the fastest growing major power, provides yet another
example of how U.S. diplomacy responds to economic challenges in the early
2000s. The PNAC document already mentioned called for regime change in
China and that was before 9/11. Since then, the Bush administration has
seemingly taken action on both economic and military fronts, complaining about
the imbalance of trade between the two countries and the strength of Chinas
currency, and embarking on what appears to be a campaign of military
encirclement using regional proxies including India. Meanwhile, Americas
Harvard-centric Eastern establishment has pursued a different angle. Harvard
Laws International Financial Systems (PIFS) sponsored a Financial Systems
symposium (21st Century Agenda for China and the United States), which was
summarized and posted on the Net. The conclusion reads:
Looking ahead fifteen years, there was a bullish consensus as to
where China will be positioned. Among the predictions by
participants were the following: the RMB will be a reserve currency;
Shanghai will be the financial center in China; and China will be the
largest investor in Asia. One U.S. participant put things in historical
context: When Deng Xiao Ping opened up China in 1978, people
worried about whether the Chinese economy could survive; it did.
When China recently joined the WTO, many predicted that Chinese
industries would be wiped out by multinationals; so far, the situation
in China does not appear so bad. If you believe in markets and that
the Chinese people and government can handle the current
problems regarding the liberalization of Chinas capital controls and
currency exchange rate, then over the long run Chinese companies
should be able to adjust and benefit.

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Alternative Reality Byte: U.S. Vs. Iran, Circa 1970s?

Rumor has always had it that former U.S. President Jimmy Carter had tried to
negotiate to have the U.S. hostages, held for 444 days by the Islamic Republic which
he had helped establish in Iran, released just before the November 1980 election
date, but that opposition (Republican) candidate Ronald Reagan had subverted,
taken over and blocked the plan. An eye-witness account of the seizure by students
of the US Embassy on November 4, 1979, in Tehran confirms a different scenario.
The mostly rent-a-crowd group of students organized to climb the U.S. Embassy
walls was spearheaded by a mullah on top of a Volkswagen van, who with a two-way
radio in one hand and a bullhorn in the other, controlled the speed of the march on
the Embassy according to instructions he received over the radio. He would slow it
down, hurry it up and slow it down again in spurts and starts, triggering the
curiosity of an educated pro-Khomeini vigilante, who later told the story to a friend
in London.
When asked by the vigilante for the reason of this irregular movement, the stressed
cleric replied that he had instructions to provide the U.S. Embassy staff with enough
time to destroy their most sensitive documents and to give the three most senior U.S.
diplomats adequate opportunity to then take refuge at the Islamic Republic Foreign
Ministry rather than be taken with the other hostages. Someone at the Embassy was
informing the Foreign Ministry as to progress over the telephone and the cleric was
being told what to do over his radio. The vigilante then asked why the Islamic
Government would bother to be so accommodating to the Great Satan and was told
that the whole operation was planned in advance by Prime Minister Mehdi Bazargans
revolutionary Government with President Carter in return for Carter having helped
depose the Shah and that this was being done to ensure Carter got re-elected. He
helped us, now we help him was the matter-of-fact comment from the cleric.
President Carter reportedly responded that Khomeini was a religious man as he
himself claimed to be and that he knew how to talk to a man of God, who would
live in the holy city of Qom like an Iranian pope and act only as an advisor to the
secular, popular revolutionary Government of Mehdi Bazargan and his group of
anti-Shah executives, some of whom were US-educated and expected to show
preferences for U.S. interests.
Defense & Foreign Affairs Daily, March 2004, by Alan Peters. The name Alan Peters
is a nom de plume for a writer who was for many years involved in intelligence
and security matters in Iran. He had significant access inside Iran
at the highest levels during the rule of the Shah, until early 1979.


< 89 >

Almost a year after the symposium, on June 9, 2005, Henry Kissinger weighed
in with an editorial in the International Herald Tribune entitled, Conflict Is Not an Option.
Kissinger wrote in part: In early May, I spent a week in China, much of it as a guest of the
government. The rise of China and Asia will, over the next decades, bring about a
substantial reordering of the international system. Paradoxically, the best strategy for
achieving anti-hegemonic objectives is to maintain close relations with all the major
countries of Asia, including China. As a new century begins, the relations between
China and the United States may well determine whether our children will live in
turmoil even worse than the 20th century or whether they will witness a new world
order compatible with universal aspirations for peace and progress.
The Bush administration remains an enigma when it comes to China.
Harvard is supporting symposia and Kissinger is urging outreach. One would hope
the administration would not wish to add one more overt enemy to its swelling list.
A country well down this path must eventually engage in the most destructive sort
of power politics taking new territories and acquiring additional resources and
skilled populations to extract and refine them because it has no private industry left
at home.
Very Expensive Wars
Every day America greedily slurps up 80% of the worlds available lending. The
countrys position is unhealthy. Its credit is exhausted, its currency is questionable and
its monetary policy is indecipherable, even to insiders. President Bush and the wise
menaround him may believe the weakening dollar poses no lasting problems, but they
have no real response other than to continue to print, borrow and spend (or maybe that
is the plan). Either way, action will have to be taken.
Consequences could be severe as the worlds bankers mull radical changes to
the global financial system. What might be the result? In an article entitled, The Bank for
International Settlements Calls for Global Currency, international financial sleuth and
Net reporter Joan Veon suggests that BIS-affiliated central bankers are beginning to
come around to a full-scale halt of the current system of floating currencies because of
cyclical volatility distorting international wealth flows.
They cite three such cycles of highs and lows. The first began in the
1970s when the dollar was taken off the gold standard. The second cycle
began in the mid-1980s, ending in a property bust; and the current cycle
began in the mid-1990s. All Americans should be concerned about this
report for the worlds bankers are signaling the end of the third cycle which
can only end with higher interest rates as money is taken out of the market.

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Meanwhile, the banks economic advisor, William White, is on record stating the
time has come for a measured withdrawal of the stimulus that has been put into the
[economic] system. In January 2006, White apparently went on record as calling for
either a return to the gold standard or global or regional currencies to help with global
imbalances.The part about gold was probably not serious. Central bankers on the whole
despise gold, which is anonymous, malleable, and generally uncontrollable. Whatever
changes get made, they will probably involve consolidation of existing currency into
regional blocks or some other similar scheme. Veon reminds us of a comment made a
year ago by former U.S. Federal Reserve Chairman Volcker: A new mechanism was
needed for the world financial system in a globalized world, we should have an
international currency.
Veon then comments, Global feudalism is [to be] created as the rich and
powerful continually skim off the top of the worlds economic imbalances so as to even
it outfor them!
Iran, the Next Neocon Target
FMNN commentator and free-market thinker Dr. Ron Paul (R-Texas) is well
aware of how the authority to declare and make war is passing from the constitutionally mandated legislative branch to the executive branch. This is excerpted from Iran, the
Next Neocon Target, posted at FMNN, April 2006.
Its been three years since the U.S. launched its war against Saddam
Hussein and his weapons of mass destruction. Of course now almost
everybody knows there were no WMDs, and Saddam Hussein posed no
threat to the United States. Even with the horrible results of the past
three years, Congress is abuzz with plans to change the Iranian
government. There is little resistance to the rising clamor for
democratizing Iran, even though their current president, Mahmoud
Ahmadinejad, is an elected leader. Though Iran is hardly a perfect
democracy, its system is far superior to most of our Arab allies about
which we never complain.
Already the coordinating propaganda has galvanized the American
people against Iran for the supposed threat it poses to us with weapons of
mass destruction that are no more present than those Saddam Hussein
was alleged to have had Even though the Taliban was removed from
power in Afghanistan, most of the country is now occupied and controlled
by warlords who manage a drug trade bigger than ever before. Removing
the Taliban from power in Afghanistan actually served the interests of Iran,

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the Talibans arch enemy, more than our own. A policy of trade and peace,
and a willingness to use diplomacy, is far superior to the foreign policy that
has evolved over the past 60 years. Its time for a change.

Storm Warning
Middle East violence intensifies. Will America go to war with Iran? Will
violence escalate in Syria, Korea or elsewhere? Is military conflict and tension a necessary
part of the modern world, or is it part of a larger, globalist manipulation? Certainly the
pattern is repetitious. The economic distress in America is likely no different (except in
scale) than it was in the late 1960s and early 1970s when the Vietnam War drained
resources from the United States even as President Johnson struggled to shore up and
expand his so-called Great Society programs. The combination of inordinate domestic
spending with the waste of supporting a war, or series of wars, is always going to result


Alternative Reality Byte:
Khomeini Put in his Place?
Khomeini was born in the town of Khomein as Ruhollah Mousavi on May 17, 1900.
Although Khomeini claims he is from a family that claimed descent from the prophet
Muhammad and that he was entitled to use the style Seyyed before his name, the fact
of the matter is that Khomeini's father was born in Kashmir, India and was a man
named Hendi. Khomeini's father was an illiterate magician-healer who extracted
money from the poor in India. Around this time, a famous dancer in India dies and
upon her death she dedicated all her money to Islam. The British took her inheritance
and established a fund through which they founded schools of Theology in Qom and
Baghdad. As part of this fund, the English provided money to Indians to encourage
them to become mullahs and dispatched them to Iran and Baghdad. Khoemini's
father was the recipient of one of these lifelong stipends. Upon receiving the stipend
he headed for Gom in Iran, but because he was untalented, he was kicked out of Gom.
He then settled near the town of Khomein and took the name of the town and entered
into trade with a partner. They began to sell jewelry and other sundry items around
town. Eventually, Khoemeni's father kills his partner, takes all the money and escapes.
As a fugitive from the law, he traveled from one village to another practicing his art
and stealing women's jewelry. Eventually, he was arrested for the murder of his
partner and hanged during Reza Shah's regime.
Upon his death, he left three boys. It was at this time that Reza Shah was requiring all
Iranians to select a surname. So, each son picked a name: his oldest son selected the name


< 92 >

in a strain on a nations resources that will lower living standards without

commensurate gain except for perhaps a few at the top of the hierarchy. For Bush,
struggling initially with a presidency that seemed too large for him, 9/11 was a selfproclaimed galvanizing event. His presidency changed, he said. He became a war
president and found a simple, straightforward way of handling his office that conflict
provided.
Was it in some way planned? The conspirati, and increasingly more mainstream
media, have much to say and their reasoning and proofs can be found on numerous
sites dedicated to debunking official accounts of the 9/11 attacks. Some cite historical
precedent, arguing that most if not all of the Western wars of the 20th century, especially
World War I and World War II, were manufactured for similar reasons. The old order was
breaking down around the time of World War I and, if you are of a certain frame of mind,
you could muster a sincere speculation that both world wars served as a distraction that
took peoples eyes off what was actually taking place, economically speaking.


of his father Hendi,the second selected the name 'Khomeiniwhich was the name of the
town, and the third selected the name Pasandideh. In Khomein, Pasandideh opened a
small business providing certificates and serving as notary. Khomeini in his youth
married a young girl and divorced her, then he married a 12 year old girl (his brother
provided a marriage certificate for him) which was illegal during the Pahlavi
administration, so Khomeini was thrown in jail. In addition, Khomeini was arrested in
Baghdad for sexually assaulting a young boy and later became a closet homosexual, a
common practice among the mullahs. He was a notoriously corrupt person. After his
father's death, the English selected Khomeini for training. Khomeini was given a
lifelong stipend to help him become a mullah. Khomeini had three children, two sons
and one daughter. One son died of overeating and alcoholism, the second son Ahmad
is a cleric in Qom and receives a life long stipend, and a daughter, Ashragh, who is still
alive. Khomeini, a man of Indian stock, had little affection for Iran. In fact, he hated Iran.
He was against education. When he came to power, he closed all the universities and
medical schools, stating that Iran did not need educated people or doctors. He
criticized Reza Shah for building schools and giving rights to women among other
things. His books on Islamic guidance are about sex and anal hygiene. With the help of
the British, Khomeini reinvented himself.
The preceding unsigned comment was added February 2006 with the following
attribution: My source is Massacre of 67 by Masoud Ansari published in 2002. He is a
professor, an Iranian Scholar. (Khomeini discussion at Wikipedia.com.)


< 93 >

Do people need a similar diversion now? Europe struggles with integration and
the United States struggles with an economy that offers more and more service jobs.
Meanwhile, the power elite is on its way to India and China, where real
productivity exists. Here is value to be skimmed off via central banking and tax
manipulations. Here, the power elite hopes to again do what it has so often done before:
help itself to wealth that otherwise would belong to those who generate it. Britain was
extraordinarily wealthy in the 1800s with an empire on which the sun never set.America
in the 1800s and for a good part of the 1900s was wealthy too. But that wealth is gone in
large part, at least numerically speaking. The United States has borrowed trillions
worldwide, and still goes back for more every day. And Britain ceased to be a leading
economic power more than a half century ago. Very strange, how fast these two empires
peaked. Athens, Rome, Renaissance Italy, these societies retained their wealth and power
for centuries. Not so for modern America and 19th century Britain.
It is not actually hard to comprehend if proper economic analysis is applied. Fiat
money from central banks, currency manipulations and income taxes all contribute to
ruination. They are the culprits and the only additional question then is whether such
nation-wrecking monetary and fiscal strategies are applied with malice aforethought or
unwittingly. Unfortunately, history seems to indicate these fiscal manipulations are not
naive and that they have been put in place to strip the wealth of the citizens. Not only do
they enrich those who are controlling the exercise, they also weaken the social order and
make society ripe for amalgamation into larger, regional financial compacts, leading
eventually to global governance.
The trick is to hide the manipulations efficiently enough so no questions are
asked. The working class, the professional class and, most importantly, the intelligentsia


E l i t e R e t r eat
President Bush heads into his second term amid deep and growing public skepticism
about the Iraq war, with a solid majority saying for the first time that the war was a
mistake and most people believing that Defense Secretary Donald H. Rumsfeld should
lose his job, according to a new Washington Post-ABC News poll. While a slight
majority believe the Iraq war contributed to the long-term security of the United
States, 70% of Americans think these gains have come at an unacceptable cost in
military casualties. This led 56% to conclude that, given the cost, the conflict there was
not worth fighting.
WashingtonPost.com, December 2006

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are to be misdirected by isms communism, socialism and capitalism, among

others. All are to be instructed that these comprise, in some part, the social order,
yet in reality each is meant merely to distract the conversation and delay necessary
realizations.
War is indeed the ultimate weapon. Let it stretch on long enough, no matter
who started it or how, and those paid hacks who come to the forefront of their
professions during the time of the nations need will begin to lob literary bombshells.
They will write of the necessity to destroy the enemy, no matter the initial reason. They
will write that it has gone too far now, that the polarization and destruction that has
occurred can only be rationalized by total victory. They will dehumanize the opposition
and declare if it is not wiped out to the last man, that victory is in doubt. Those who still
object, they will be called unpatriotic.
But ask only (if only you could), would you go? Would you give your life, your
childs life, your siblings life for what you ask of others? Take everything a man or
woman has his or her life and leave the body to rot in a fetid jungle or on littered
city streets in a despairing foreign country for reasons that are neither clear nor
compelling.
Would leaders die this way for these causes, and for reasons that change every
month, as if they are being tried out like jokes at a nightclub? Meanwhile, the question
lingers at the beginning of the 21st century, rising slowly like a bad odor: What country
will be next? Whose children will be blown up? What nations top man will be called the
next Hitler by media that refer to Americas largest bureaucracy as Homeland
Security? Is it Iran, possibly Syria or Lebanon, even Palestine or North Korea? Korea has
been making ugly noises again. It will most likely be a candidate from the Middle East
a region that is gradually melting into a bloody stew of seething violence and antiAmericanism.
Economic Action Alert
Take possession of at least some assets via physical delivery. Actions have
consequences. If the international banking community has its way, Bush and Co.s
dollar farce will get the hook.How messy that will be, how much agony that will cause,
how much pain those not privy to this sort of planning will have to undergo, is not yet
clear. Some things are. No one attending the banking meetings noted above will miss a
paycheck, and as Veon points out, the central banking community will no doubt
manage to help itself to a bit of the skim, wherever it may be. Creating a new currency
is hard work. Given a change of this magnitude, if it were to come, one wants to be
holding precious metals, especially silver. Physical delivery is a plus.

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5
How the banking industrys money power grew through the ages.

BAN KI NG SU RGE
The Austrians in the Mises-Rothbard tradition have never called for a gold
standard except as a market-created standard of monetary exchange. It is a market
standard in gold, not a gold standard. Gold will probably win in international exchange,
they both believed, but silver or other metals may operate side by side gold domestically,
which Mises and Rothbard described as parallel standards. The gold standard is, in this
view, the market standard.
September 1999, LewRockwell.com, Money Gold Standards
High Alert
We read in an earlier chapter of John Perkins and how the global banking
infrastucture was used for purposes other than what we might consider the
common good. What Perkins was involved in was a promotion. That is, he utilized
money, promises and persuasion to reap a greater reward. The global power elites
promotions are so vast that it is difficult to ascertain where they begin and end
and this is where free-market thinking can prove most helpful. A free-market
thinker who understands economic laws is much better able to discern the
difference between an operative business and a promotion, between fantastical
claims and realistic outcomes.
Why is this important? Free-market thinkers and it is the contention of
this book that there are more of them every day thanks to the Net wish to
function as much as possible in an adult capacity. They can best understand and
manage their lives if they are not the victims of prevailing myths about the way
the world works. This is true on a personal and professional level, and it is true

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when it comes to their financial environment as well. Free-market thinkers want to

understand the reality behind the reasons the financial system is set up this way or
that, and why the business cycle does what it does, and how inflation steadily rises
even though the Fed fights it.
Control the Money, Control the Market
When it comes to understanding their financial environment, such freemarket thinkers are usually aware that nothing is more important to the current
system than central banking. On the surface, the central bank is expected to
manage money and ensure the economy perks along. But in fact central banks
perform admirably as promotional vehicles giving the world a sense of surety
and comfort even though they are controlled by the bankers behind them. When
the Group of Six or Eight or Ten or Twelve meet to discuss world economic
matters, the results are played out in all the mainstream media. The simple
creation of national and international institutions, and their funding, provides
great promotional theatre, regardless of whether the organization in question
actually does anything.
In the case of central banks, of course, the institution does a great deal. The
creation of money is an extremely powerful lever, and when central bankers speak,
they are usually careful to avoid the subject, talking instead about velocity, interest
rates and other aspects of monetary calculation and control. But at its core, the
central bank is a money-making machine, and the closer you are to the spigot, the
better off you are going to be, financially. Additionally, the central bank is at the
heart of the larger promotional machinery of modern money power. Without the
capacity to make and circulate money, the rest of what the power elite has
accomplished would be relatively unworkable. In fact, it wouldnt have had the
money to do it in the first place.
When one controls the money, one controls the market. We saw this in the
late 1920s when an upward trend in money creation pushed the investors and
speculators into a final frenzy of buying . In the late 1990s, central banks stockpiled
money to smooth out the rough patches from Y2K. Some was put into circulation
and may have helped the Nasdaq market head for outer space before crashing
and burning. Another Fed misstep?
A little free-market thinking would have helped many of the investors
piling into tech stocks in the late 1990s. Aware of the 1920s experience, and other
similar activities, a free-market thinker might have investigated governments
plans for Y2K in America and Europe, concluded too much money was sloshing
around and taken steps to secure his or her portfolio against a market blow-off

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which actually happened in the case of the Nasdaq, though not the Dow.
Understanding financial mechanisms is absolutely necessary to growing
up as a mature, confident, in-control individual in the 21st century. Without doing
so, it will be difficult to make informed decisions.
The True Lynchpin
Central banks, as stated earlier, are perceived as lynchpins of the worlds
larger economic system. The banking industry helped to construct this system in
all its initial glory and subsequent decay. First there was honest money, then paper
money and finally, government-backed fiat money supported by nothing but
the faith and credit of the government itself. Today, there are rapid business cycles,
predatory inflation and the looming threat of hyperinflation.
What are other issues for which free-market thinkers ought to be on the
lookout? The unwinding of the current system, because of the abuses we have been
cataloguing, and a great run-up in commodities, especially money metals such as
gold and silver. Precious metals ran up over US$700 earlier in 2006, before
subsiding, but many metals insiders believe we have not yet seen the great surge in
pricing that is to come. By the time it is over, so the theory goes, gold will be lodged
upward of US$3,000 an ounce; the dollar, and indeed all fiat currencies, will be
finished. A gold market standard one in which the price of gold is fixed by the
market, not the state may eventually rule the day.
Silver especially is a metal to watch because the ratio of silver-to-gold is at a
historical low, with silver being atypically undervalued compared to gold. This is one
way, of course, to ascertain that the silver market remains manipulated when it
comes to price discovery. But nonetheless, such market manipulations, which seem
endless at the time, have fairly short lives in the scheme of things. When silver finally
does rise, it will move fast and hard, faster even than gold.
Banking and Government
Throughout this chapter the free-market thinker ought to note the growing
interactions between government and the banking industry. It is the quasi-public
nature of modern banking, and thus modern money, that has been responsible for so
much mischief. Unfortunately, a true understanding of money is hard to come by
because of all the untruths that have been told and continue to be told in academia,
on Wall Street, in newspapers and magazines and, of course, within the material
disseminated on the Net or printed by either the banking industry, the Federal Reserve
or the U.S. government. Where is someone to go? Until recently, nowhere. The fine free-

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market work of the von Mises Institute was known to a very small group of individuals
and secondary, popularly-oriented sources such as this book were virtually nonexistent. It is, of course, the Internet that has changed everything. But absent the
information conduit of the Net, sources of information about monetary and banking
policy remain unreliable. Theory is related in such a way as to make no distinction
between government interference with money and honest money itself. Articles about
monetary policy start with assumptions that the central banking system and the
larger, international system are sound when they are not.
Throughout the world a tremendous fraud has been perpetrated. Gradually, a
global power elite has substituted its own paper scrip for the gold and silver that
circulated in freer times. These individuals and groups have been able to keep precious
metals for themselves or lacking possession, suppress the value of them for others.
Imagine the power you would have if you could do this: First set up a
printing press, then convince government to make you the monopoly provider of
paper money while banning, outright, the use of honest money. Now everyone has
to use your paper money, and you can print as much of it as you want. It sounds like
a fairy tale, but it is real. This is what has happened around the world, and a very few,
very rich individuals own the printing presses that provide the paper money. Of
course, despite owning printing presses, it cannot simply print money, put that
money in its collective pocket and walk away. The system is more subtle than that,
giving enormous purchasing power to those near the credit spigot where money is
printed or loaned. But, nonetheless, much of the money actually has to go out to
commercial banks, which then put it into circulation. The current manipulations
were developed over centuries as various powerful authorities gradually figured out
that great fortunes could be built by controlling and issuing the money circulated
throughout society.
The manipulations started innocently enough with coin shaving, but
eventually became intricate and increasingly poisonous to the body-politic. Like a
serpent, these machinations crept through society, gradually strangling fairness,
honesty and decency.
From Barter to Cash
It is generally agreed that money began as barter a very ancient kind of
exchange of valuables that was probably the predominant way of trading goods and
services during the long formative period when humans traveled up and out of Africa
turning either toward Asia or spreading north and west throughout Europe. These
nomadic clans needed little in the way of specialized stores of value at a time when

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hunting, fishing and the gathering of edible fruits and legumes provided tolerable
sustenance. In such a nomadic society, males generally hunted while females made the
clothing, kept the house, tended the children and added to the diet.
As farming became established, migrations became less frequent, clans grew in
population and permanent agricultural communities expanded. As these urban
agglomerations increased in size, complexity and raw population, they no doubt came
under attack, necessitating a wide range of defensive measures including strategic treaties
and a new kind of specialization the professional warrior class serving the interests of
the merchants and more successful clans warring for influence and power in the urban
trading communities. Out of this no doubt chaotic and confusing time came first tribal,
then regional clans, complete with the leadership of big men chiefs and kings and
gradually individuating languages. At this point, the urban trading environments far
exceeded the rural settlements surrounding them.
Something else happened as trading communities evolved. Specialization
ensued. Urban areas must eventually have been dominated by those with more
specialized non-agricultural skills such as metals-smelting, pottery-making and


Co n s p i r at i
Although many people today would not view the CFR as a secret society it was originally
set up as part of a secret society and it was kept secret for many years, in spite of its
awesome power. Carroll Quigley, professor of International Relations at the Jesuit
Georgetown University, exposed the Round Table Group with his book Tragedy and Hope.
The Rothschilds supported Rhodes to form De Beers. Later, Rhodes made seven wills which
established a secret society modelled after the Jesuits and Masons to help bring in a OneWorld Government centered upon Britain, and the Rhodes Scholarships. The inner group
was established in March 1891 and consisted of Rhodes, Stead, Lord Esher (Brett), and 33*
Mason Alfred Milner. A secondary circle of "potential members of the Circle of Initiates"
consisted of the Jew Lord Balfour, Sir Harry Johnson, Lord Rothschild, Lord Grey and others.
The Fabian Socialists dominated the staff at Oxford when the Rhodes Scholars began
arriving. These scholars then received indoctrination and preparation to become part of
an international socialist New World Order. The Round Table Group developed from the
inner executive circle of Rhodes secret society. The outer circle was established after the
start of the 20th century. The Round Table Group was extended after WW I by organizing
a front organization, the Royal Institute of International Affairs. The Council on Foreign
Relations was the American part of this front. The inner circle continues to direct the outer
circle and its two front organizations RIIA and CFR.
Fritz Springmeier, Bloodlines of the Illuminati

<100>

carpentry along with the merchants specializing in the marketing of various goods
and services. Technologies would have evolved more quickly in urban areas as those with
like skills and interests competed with each other or shared better ways of accomplishing
individual tasks. We imagine the ancient societies to be primitive, but even such by
our standards rudimentary environments demanded a good deal of specialization. The
complex of skills, for instance, that it took to throw and cure a pot, smelt metals for a
horseshoe or sword, or to build a wooden fence or skiff is far more formidable when
examined in detail.
Mediums Developed
As the need for money developed, so too did the accepted medium that
society used. People needed a store of value that could be relied upon to hold its value,
something that was malleable, portable and most important, limited by nature such
that no artificial supply could vitiate the money supply and create inflation. People
sought, in other words, an honest monetary unit of exchange that could satisfy their
need for indirect exchange and that could not be counterfeited.
It was also imperative that it reflect value because it required labor to create it.
Gold and silver exist in the earths crust, and both labor and investment capital are
needed to explore, develop and process the ore. This is where the invisible hand will
moderate the money supply, but only effectively if control of the money supply is left
free from government interference.
Many things were historically and temporarily used as money over the past
millennia. These include beads, sugar, salt and even cigarettes, which still today are an
acceptable means of trade in Americas overloaded prison system. Eventually, gold and
silver emerged as the natural store of value for many societies around the world
because they are, as one famous financial writer has summarized, durable, divisible,
convenient, consistent and a reliable store of value.
Lets take these attributes one at a time. Gold and silver are indeed durable, yet
both are soft metals, easily divisible. Are they convenient? That neither are light metals
probably aided in their selection since money, in its natural sense, is the product of
weight divisible in ounces. A heavy, valuable metal allows the individual to transport
a fairly small amount, yet still move significant capital. Storage is important too, and
since both metals hold a good deal of value in fairly small amounts, a great deal of
wealth can be stored in a very modest space. Gold and silver also provide consistency,
in that they do not vary in their natural state and impurities are relatively easily flushed
from them. Finally, both metals are in demand in a practical sense.
There is another important requirement that we have not yet reviewed and,
that is, money stuff must be plentiful enough for commerce and indeed gold and

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silver are. What emerges in the present day, time and again, as a criticism of the idea
that society could return to the use of precious metals as a direct substitute for paper
bills, is that neither metal, but gold especially, is present in enough abundance to satisfy
the demands of modern commerce. In fact, gold and silver are like any other
commodity and thus will be supplied in greater measure if the price starts to rise due
to a shortfall of some sort.
Will we ever run out of gold and silver? Since both occur as the result of
geological processes, more of these two precious metals is being geologically
created every day. Additionally, one has to consider just how much of either
commodity has actually been used throughout the ages. Economists have
speculated, astonishingly, that all the gold ever mined from the earth could
probably fill a few boxcars on a freight train. The silver/gold ratio has varied
throughout recent years and currently stands at an astounding 50-to-1, considering
the historical average for thousands of years was more like 16-to-1. For purposes of
our argument, multiply a few boxcars of gold by 15 say five of them. Seventy-five
boxcars, perhaps thats the amount of silver that has been mined throughout the
ages, even in this day of high-tech uses when silvers applications are broadening.
Quite an eye-opening exercise, isnt it? Precious metals are indeed precious, but
not in such a limited supply as to deter the free market from choosing them as the
best form of honest money.
Private Minting Coin Shaving, Too
Initially, gold and silver coins were no doubt minted privately. Raw gold and
silver was refined into coins bearing the name of the mint and the amount of metal
each coin contained. If the public trusted the coin maker, then the coins would be
accepted as monetary instruments. The confidence of the public was essential to the
coins acceptability, therefore, it was important for the issuer to have an impeccable
reputation for honesty. If so, people would willingly trade their valuable goods and
services for the coins.
To begin with, there were no legislative or other man-made decrees involved in
the process of creating or minting money; and thus, as unscrupulous individuals began
to shave or clip coins, private concerns sprang up to guarantee honest weights and
measures. Eventually, those who had established themselves as societys leaders began
to mull ways to increase personal wealth and saw the easiest way was simply to seize
control of the money supply. And thus it was that eventually the big men came to be
in charge of the institutions guaranteeing honest weights and measures, just as they
had come to be in charge of the minting and issuing facilities as well.
Now the mischief really began. Having taken over the responsibility for honest

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coinage, those in charge wasted little time in becoming dishonest by issuing that
which they had denounced into the marketplace: debased coins. The debasement in
this case was not from shaving or clipping but from adding cheaper alloys to the coin
along with the gold and silver.
Consider the baker who came into possession of some of the governments
newly debased coins as payment for his bread, thus receiving less gold or silver than
his labor was worth. Soon he starts to charge more for his bread to compensate. Today,
this would be called inflation and it is the inevitable outcome of dishonest money.
People need to charge a certain price for goods and services, and they will gradually
charge more as the value of their money declines. The public always pays the price for
theft by the powerful. Older people, especially those on fixed income streams such as
annuities or pensions, are especially vulnerable. In the United States, for instance,
certain government and private payments are supposed to be inflation adjusted. But
how is this possible when food and energy are often excluded from the calculation?
Justification: Such items are especially volatile and might give false readings, which is
all the more reason to include them.
The damage done by monetary debasement takes years, even generations, to
undermine civil society. In the meantime, officials work hard to maintain the fiction
that the state must be the honest broker of money stuff, providing uniform weights
and measures for a marketplace that is otherwise prone to chaos and corruption. The
arrogation of monetary manipulation is at least partially responsible for the tension
between authorities and the free market. While leaders antipathy to the marketplace
might seem strange given that the market provides support for the state through
taxes, in truth it is absolutely necessary. Freud had a term for this sort of activity:
transference. Actually, the state is fundamentally dishonest, not private enterprise.
Competition disciplines private enterprise. What disciplines the state?
From Paper to Fiat
The concept of paper money could not have been implemented without the
development of bullion banking, for it was this evolution that called for the first credits
or customer receipts, and it is these that laid the groundwork for the paper note. The
initial note doubtless evolved as depositors found it inefficient to go to the bullion
bank to redeem their metal deposits and instead began to use bullion bank receipts to
settle transactions. As this process matured, it became codified within the private
banking system. The issuance of notes became routine and bullion banks had only to
take care that there was no cause to doubt the amount of gold or silver that lay behind
their paper receipts.
In order for a bank to be trusted as an issuer of paper money, it had to possess

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three characteristics. First, the bullion bank had to have a good reputation or its
customers would not find its receipts easy to offer in lieu of gold or silver. Second, the
gold and silver had to be redeemable on demand meaning that bearers of receipts
must be able to present them at any time to the bank and receive the full amount of
gold and silver. Third, the bank must not issue paper receipts exceeding the amount of
gold and silver it has on deposit, as doing so would render the bank technically
insolvent and unable to satisfy all the depositors claims.
The market itself enforced monetary discipline on most bullion banks. Were a
bank to issue more receipts than it had gold and silver on hand, and the public were to
find out about it, the bank undoubtedly ran the risk of a runas the fraud was exposed.
This forced citizens to accept responsibility for their decisions about where to bank and
whom to trust. Due diligence was part of life and poorly managed or dishonest banks
would likely not survive in a market that demanded full and true disclosure over all
aspects of its operations. The free market, by definition, is constantly moving
businesses of all types toward more disclosure as free-thinking citizens reward those
who provide such information with their confidence and, subsequently, their business.
This system works just fine as regards monetary issues so long as the government stays
out. Unfortunately, once government-sponsored banks became the norm,
manipulations increased and free-market thinking decreased since critical evaluations
of government-backed banks mattered little.
Modern Monetary Control
Around 1500, the modern system of monetary control began to take shape.
The initial breakthroughs came as a result of the creation of such state-run bullion
banks an outgrowth of making the state the honest arbiter of honest weights and
measures. Still impediments remained to total monetary control. The power elite of
the day had built the engine but lacked the fuel. However, it was only necessary to take
one more ruthless, false step and that was not long in coming.
What those charged with increasing the kings treasury finally decided to do
was print additional certifications of bullion storage well above what had actually been
received. As the process evolved, states began to issue more scrip backed by less gold
and silver. Today this practice, known as fractional reserve banking, is practiced
virtually everywhere and is unfortunately the province of government-backed
central banks . In fact, government-secured fiat money, fractional reserve banking and
central banks are the mainstays of financial systems around the world. Money, thus, is
no longer generated by the free-market, but has become a quasi-public and thus
undisciplined commodity.

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Co n s p i r at i
It has been said that the effort to establish a central bank here caused the
American Revolution. For the benefit of Rothschilds Bank of England, British
Parliament ordered the colonists to give up their currency, and the colonists
soon found themselves encumbered by a circulation strapped with 30% annual
interest. Benjamin Franklin summarized the causes of the war thus: We would
have gladly borne the little tax on tea and other matters, if it had not been that
they took from us our money which created great unemployment and dissatisfaction.

2005 post PerfectEconomy.com, Cause of the American Revolution

Monetary Innovation and Central Banks

Central banks print as many receipts today known as money as their
managers deem necessary, and offer as much credit as they believe is appropriate. But
very little of the moneycreated is backed by anything other than governments faith and
credit. Economists mostly accept the current structure without question and if pressed
will probably maintain that the competition between nations keeps issuance honest.
Yet, mainstream economists have another question to answer if one is willing to
grant any credence to the argument that a fully international system of banking is the
preferred configuration. They must explain who would determine the appropriate level of
credit issuance within a one-world government and how a monetary system comprising a
single standard certificate would avoid massive ruinous inflationary run-ups.
The above questions are not framed out of idle curiosity. Current Western
banking policy indeed seems focused on reducing monetary denominations to a
single, standard certificate the euro being a point in case. Also, the competition
between nations to sustain value is mostly a race to the bottom. Each nation prints as
many receipts as its managers deem necessary and the result is endless inflation and
erosion of the value of receipts (money) already in hand.
The win-win for the state and the power elite has been nearly total, though in
fact, it has taken a fairly long time to implement and has occurred in stages. Yet, the
mechanism remains the same as it did in the 1600s. Central banks print money and
issue credit (out of nothing) and because of the success of the model, governments
all over the world harvest proverbial golden eggs. Today, money issued (printed) by a
central bank is nothing but an electronic transaction a notation of credit offered.

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Inflationary Printing
In simplest terms, central banks inflate by printing money. The more money
they print, the cheaper money becomes, and the less a governments debt becomes. By
cheapening money, the government deprives individual citizens of part of the value of
that money. As the value is eroded, the citizen becomes poorer, even if he or she doesnt
notice it right away.
One of the first of the central banks operating along lines we would recognize
today was founded in Sweden in 1656. According to numeous monetary sources, the socalled Bank of Palmstruch was set up by Johan Palmstruch under the authority of the king,
who gave permission to its operations according to stated regulations. Acting as a
harbinger of what was to come, the Palmstruch bank issued too many notes against its
underlying assets and went insolvent. A new bank took its place, managed under the direct
control of the Riksdag of the Estates to prevent the interference of the kingand was called
Sveriges Riksbank. Palmstruch was condemned to death over the banks losses but later
received clemency. The Riksbank has stood ever since and is today the Bank of Sweden.
It was in Britain, perhaps, that the real breakthroughs were made with the
understanding that a national emergency such as a war could be used as a justification
for the creation of a central bank administered by subscribers supervising loans to the
Crown. The rough outline of what was to come is evident even in 1694 when King
William III fighting a prolonged war against France asked a group of wealthy
merchants for a loan of more than a million pounds. Those approached were willing to
lend the Crown the money with two conditions. First, they wanted to found a private
bank but give it a very public name the Bank of England. And second, they wanted
the kings permission to issue bank notes .
There was actually a third wrinkle. The kings mercenaries were to be equipped
and paid with notes issued against stores of gold and silver in the bank. Once the king
agreed to this, the pattern of modern central banking can be clearly seen. While notes
were not official tender until 1833, and then only for sums above 5, those involved had
garnered for themselves a formidable advantage. Englands goldsmiths (London
private banks, that is) gradually ceased to issue their own notes following the Bank of
Englands establishment, unable to compete with such a privileged neighbor. (Beyond
London, countrybanks issued their own notes freely until their issues were limited by
Peels Act of 1844: The last country bank notes were withdrawn in 1921.)
Today, central banks print as many receipts (money) as their managers deem
necessary, and offer as much credit as they believe is appropriate. But very little of the
money created is backed by anything other than their governments faith and credit.

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Tipsy Superstructure
With the advent of the 20th century paper-money banking emphasis, a
banking superstructure rose up supported by nation-states and controlled by central
banking. A good deal of it emerged alongside the United Nations much of it little
known to the general public and a good deal of it involving enormous privilege and
questionable stability. Three of the chief international banking players include the
following:
The International Monetary Fund (IMF) is a kind of hall monitor for its 180plus nation-states. According to its pamphlet, A Global Institution: The IMFs Role at a
Glance, the bank monitors exchange rates and international payments, and watches
for signs that an individual country is having difficulty meeting its bills. When a
country is in trouble, the IMF will dip into its fundto assist, but also, at the same time,
urge the country to adopt responsible budgetary processes. The IMF refers to itself as
the lender of last resort but the IMF doesnt create its own fiat money. It relies on
grants from various governments (and thus you and me). Thus, the actual last-resort
lenders are the contributing governments. The IMF is actually a quasi or pseudo
lender of last resort.
The World Bank is divided into two banks: the International Development
Association (IDA), and the International Bank for Reconstruction and
Development (IBRD). The IDA is for very poor nations and the IBRD is for the more
credit-worthy nations. The World Bank has more than 180 member countries but
borrows money for its operations, issues bonds and then loans the proceeds to
poorer countries. Both the IDA and the IBRD lend strictly through governments.
Under its most imaginative leader, Robert Strange McNamara, the World Bank
began to emphasize its role in wiping out poverty. But, in fact, the bank is in the
business of making loans to developing countries whose citizens or government
officials will then make purchases of varying necessity from the global
corporations introduced to the now-flush country by the bank. Often, if the
country ends up in trouble from its unnecessary purchases, the poor will end up
with higher taxes or inflated currency.
The Bank for International Settlements (BIS) deals only with other central
banks. It helps money move around the world, often via bridge loans to central banks
of countries waiting for loans from the IMF or World Bank. These bridge loans are then
repaid when the other funding comes in. In Tragedy and Hope, Carroll Quigley has
described the reason for the formation of the BIS this way:

< 107 >

The power of financial capitalism had another far reaching plan,

nothing less than to create a world system of financial control in private
hands able to dominate the political system of each country and the
economy of the world as a whole. This system was to be controlled in a
feudalistic fashion by the central banks of the world acting in concert, by
secret agreements arrived at in frequent meetings and conferences. The
apex of the system was to be the Bank for International Settlements in
Basel, Switzerland, a private bank owned and controlled by the world's
central banks, which were themselves private corporations.

A Most Unusual Bank

James C. Baker, author of The Bank for International Settlements: Evolution
and Evaluation, explains that, The BIS was formed with funding by the central banks
of six nations, Belgium, France, Germany, Italy, Japan, and the United Kingdom. The
Hague Agreement of 1930 gave the BIS its operative international charter and
established its headquarters in Basel, Switzerland. According to the agreement, The
objects of the Bank are: to promote the co-operation of central banks and to provide
additional facilities for international operations; and to act as trustee or agent in regard
to international financial settlements entrusted to it under agreements with the
parties concerned.
The BIS is a most unusual bank in that its directors, officers, employees and
members live in a legal bubble. BIS reportedly stands above Swiss law and above the
law elsewhere as well. BIS couriers apparently have diplomatic immunity. BIS-affiliated
individuals and businesses have the right to use codes and encrypt documents. There
are immigration and emigration exemptions. They are free of legal jurisdiction and
taxes; not liable for civil or criminal charges unless the offense is egregious.
Wood makes another point as regards the BIS. On March 10, 2003, the BIS
abandoned the Swiss gold franc as the banks unit of account since 1930, and replaced it
with the SDR. SDR stands for Special Drawing Rights and is a unit of currency originally
created by the IMF. Baker defines the SDR as follows: An international reserve asset,
created by the IMF in 1969 to supplement the existing official reserves of member
countries. SDRs are allocated to member countries in proportion to their IMF quotas.
The SDR also serves as the unit of account of the IMF and some other international
organizations. Its value is based on a basket of key international currencies.
There is no doubt, according to Wood, that the BIS expects to supervise a
transition to regional and then a global currency perhaps using the SDR. The Brandt
Equation, 21st Century Blueprint for the New Global Economy notes, for instance, that
since the SDR is the worlds only means of meeting international payments that has

< 108 >

been authorized through international contract, The SDR therefore represents a clear
first step
But maybe it is not so complicated as all that. FMNN commentator and freemarket thinker Bernard von NotHaus has already founded and put into circulation the
Liberty Dollar, a moneynow distributed in the millions and owned by the people and
not the Federal Reserve.Without millions at his disposal and an army of assistants, von
NotHaus is the epitome of human action, creating a new currency and circulating it on

Reality Byte: Gold and Economic Freedom

Defense of the Gold Standard Selected Points, Condensed
(Former Fed Chairman Alan Greenspan wrote the paper from which these points are
excerpted when he was in his late 20s and an acolyte of famous free-market novelist Ayn
Rand.)
MONEY
Market Value: Money provides a standard of market value and a store of value.
Savings: Without savings, neither long-range planning nor exchange would be
possible.
Medium of Exchange: A medium of exchange should be durable, divisible and
homogenous.
Single Medium: The use of a single medium is highly advantageous for it makes
exchanges possible on an incalculably wider scale.
Credit Claims: Every credit instrument is ultimately a claim on some tangible asset.
Amount of Credit: Under a gold standard, the amount of credit that an economy can
support is determined by the economy's tangible assets.
GOLD STANDARD AS PROTECTOR OF SAVINGS AND CREDIT
Repels Deficit Spending: A gold standard is incompatible with chronic deficit
spending (the hallmark of the welfare state).
Repels Expansion of Credit: Abandonment of the gold standard made it possible for
welfare statists to use the banking system for unlimited expansion of credit.
Repels Confiscation of Savings: In the absence of the gold standard, there is no way
to protect savings from confiscation through inflation.
Protects Wealth: The financial policy of the welfare state requires that there be no
way for the owners of wealth to protect themselves.
Protects Property: Gold stands as a protector of property rights. Thus, the statists
antagonism.


< 109>

his own. This is excerpted from Competition Comes to the Fed, posted at FMNN,
February 2006.
Most Americans dont realize the depth of Americas current
monetary crisis, and those who do dont stop using money in protest.
Most people just shrug their shoulders instead. As the old saying goes,
you cant fight city hall. So for years, Americans have stood by and
watched as the Internal Revenue Service has dipped deeper and deeper
into our paychecks, and the Federal Reserve has entrenched itself into
the economy. Are people who attack the Federal Reserve just
conspiracy theorists? Definitely not. Many dont believe a conspiracy
has taken place they simply feel that the current system is out of
control. On the other hand, hundreds of authors and commentators
have gathered an impressive body of facts and documentation that
show how the U.S. Constitution was deliberately circumvented to allow
the central bankers control over our money, and how the IRS uses scare
tactics and even violence to browbeat American citizens. These
students of the nations monetary system arent kooks theyre
professors, political scientists, judges, Congressmen and Presidents.

A Word About GATA

No present-day chapter on the history of money would be complete
without a word about one specific FMNN commentator, William Murphy,
president of the Gold Anti-Trust Action Committee (GATA), and a free-market
thinker mentioned elsewhere in this book.
Along with a partner, Murphy founded GATA to agitate against what he
and others, including certain well-known hard-money economists, considered to
be the blatant manipulation of precious metals prices, specifically gold. Over the
years, Murphy has spoken out tirelessly against what he considers to be a virtual
conspiracy to invalidate gold as a barometer of financial health and a store of
value. GATA has filed lawsuits against certain financial institutions and named
others as party to the perceived manipulations including various central banks,
the Federal Reserve, the Bank for International Settlements, and various
commercial banks such as J.P. Morgan Chase, Citigroup, Deutsche Bank and
Goldman Sachs. The result of the activities of these institutions, according to
Murphy, is that gold settled in around US$300 an ounce in the early 2000s when
it should have been around US$750 if it had just kept pace with the stated
inflation rate. Although, based on the massive amount of fiat currency that the
central banks have injected into the economy, it is seemingly inevitable that the

< 110 >

price of gold shall soon far surpass US$750 an ounce.

Murphy gave a most enlightening speech at the 2006 World Gold
Investment Conference in Vancouver, Canada, GATA Keeps Its Promise. His main
point was that the central banking/power elite conspiracy to damp the price of gold
was finally unwinding. In his Vancouver speech, Murphy was careful to point out
that most of the allegations made by GATA had already been admitted by top
individuals.
Federal Reserve Chairman Alan Greenspan said in a July 24, 1998,
speech to the U.S. Congress that, Central banks stand ready to lease gold in
increasing quantities should the price rise.
The Reserve Bank of Australia produced a 2003 annual report
including this line: Foreign currency reserve assets and gold are held primarily
to support intervention [manipulation] in the foreign exchange market.
The Bank for International Settlements William White said in a June
2005 speech in Basil, Switzerland, that central banks provide international
credits and joint efforts to influence asset prices, especially gold and foreign
exchange, in circumstances where this might be thought useful.
Murphy also mentioned that executives at the giant conservative bank
Cheuvreux, a division of Frances Credit Agricole, were on the record as stating
that GATA was correct regarding gold manipulation claims. And Murphy adds, It
gets better. GATA revealed an IMF paper which corroborates GATAs claims that
much of the central bank gold has been double counted and that the central
banks are not properly accounting for the gold no longer in their possession.
Storm Warning
Market volatility increases. What Murphy has done in the past few years
to expose the massive rigging of the gold price is both admirable and courageous.
But we are now entering more dangerous territory. The price of gold may well get
a lot more volatile from here on in (both ways). While the power elite is losing the
public argument, its great power and wealth allows it to continue to do behind
the scenes what Murphy claims it has been doing in any case for at least this
last decade.
Careful monitoring of the markets reaction to gold and silver is a
preferable stance at this time. As of this writing gold has been as high as US$700
and also fallen well below US$550 within a single month. A swing of US$150
constitutes volatility in the area of 25% at the low end. Silver, which usually trades
in a ratio with gold, has been similarly active. And this kind of price movement is
significant for those who are planning on buying or selling gold and silver.

< 111 >

It would be naive to believe that price manipulations have ceased. In fact, to

outside observers, the vast price differentials are but faint echoes of a fierce battle being
fought far away by gigantic entities of great wealth. On one side, probably, Russia, Iran
and China are arrayed, and on the other is the Western power elite, the central banks,
multinational corporations and individual investors such as George Soros, known to
support the financial system of fiat and government-backed fractional banking.
Any close contact with these financial behemoths would carry the danger of a
trampling or even worse. Great forces are being unleashed. This battle is destined to
continue not for months but years. The Internet itself is forcing some of it, for
individuals such as Murphy and groups such as GATA would be nowhere nearly as
effective without the Net.
So many it seems are ready to consign money manipulation to the Dark Ages
and to even more ancient times when tyrants shaved coins and then issued them at
higher values to their subjects. What Murphy shows us is that the ancient struggle over
money honest money and power is as active as ever. There is very obviously a
titanic struggle being waged over golds future. Modern money power is determined to
maintain control, to continue the suppression in the hopes that finally people will be
persuaded that precious metals have no value as monetary units but are merely bright
trinkets of variable worth.
Yet the idea that any sort of market manipulation, no matter how long
sustained in the modern era, is going to have any real impact on peoples perception of
gold and silver is a futile one. It is born from arrogance, fueled by great wealth and is
obviously being pursued by a power elite that cannot stand to lose control of any single
area where it still has some ancient sway.


E l i t e R e t r eat ...
GATA has been saying all along that the central banks do not have the gold they say
they have most likely less than half the gold listed in their reserves. The missing gold
has been swapped or lent out and is not being properly accounted for as the new IMF
study says it should be. Why? Because the missing gold has been used to suppress the
gold price. The more this suppression of the gold price is made known, the more
countries and big financial interests will want to own gold and the faster gold will
soar toward $3,000 and then $5,000 an ounce.
Bill Murphy GATA Presentation, GATA.org, June 11, 2006

< 112 >


Co n s p i r at i
The threat posed by U.S. terrorism to the security of nations and individuals was
outlined in prophetic detail in a document written more than two years ago and
disclosed only recently. What was needed for America to dominate much of humanity
and the world's resources, it said, was some catastrophic and catalysing event like a
new Pearl Harbor. The attacks of [9/11] provided the new Pearl Harbor, described as
the opportunity of the ages.
December 2002 post
at HiddenAgendas.com by John Pilger

There is no need for these battles. The continual launching and relaunching of
propagandistic promotions even military campaigns aimed at devaluing
beautiful metals in order to make people psychologically pliable and accepting of
government-backed paper money is a fools errand. The problems are manifold, and
they will continue to multiply. Why dont these enormously powerful, energetic and
intelligent individuals put their time and effort into more substantive pursuits? What,
in fact, will they gain if they win? The battle over gold is a mere skirmish compared to
what lies ahead as Net-based critics raise awareness about the Western systems lack of
credibility.
Economic Action Alert
Put enough time and effort into sociopolitical and economic analysis to
reach a determination as to where you stand on these issues. For so long the term
money power has been whispered fearfully and people have been warned against
confronting it. But times are changing. If it ever gets to the point where there is public
debate on these issues and the conversation includes a level of credible information,
the power elite will lose. Any honest explanation will ensure the systems downfall.

< 113 >

Free societies and what is necessary to keep them that way.

E U R O P E , D I F F U S I O N A N D D E ST R U C T I O N
People cannot belong to the United Nations. Only governments can belong.
The delegates to the United Nations are simply politicians who have been appointed by
the member governments. And it is in the nature of the United Nations that it will look
after the governmental interests of its members. Hence, the things that the member
governments desire to do will become the policies of the United Nations. But the thing
all member governments desire to do is to rule their own people and to collect money
from them. This is inherent in their natures. So the United Nations, perforce, will aid and
abet the member governments in their universal desire to maintain a coercive hold over
their individual subjects.
November 2005, Mises.org,
Nature of Man and His Government (1959)
High Alert
This chapter is one of the most important of High Alert, though it is
also perhaps the most theoretical. The reader should not skip past it, or quickly
skim it, because it is very important from a profit perspective to understand
what kind of sociopolitical structure encourages and nurtures freedom. Liberty is
intrinsic. Freedom is not. Few who are enslaved ever grow wealthy, nor do those
who invest in such societies. Freedom allows what free-market thinkers call
human action and the result of human action can provide benefits that
result in a better quality of life and generate profitability that enrich all those
involved in building a successful society. Yet the mechanisms underlying
freedom are not well understood, even by many free-market thinkers who have

< 114 >

spent a good deal of time studying the issue.

Comprehending the fundamentals of freedom is more important today
than ever because the sociopolitical environment, worldwide, is in flux. The
worlds most populous country, China, seems to be headed toward more freedom.
Meanwhile, the bureaucrats driving the European Union maintain that only by
acting in concert, and by breaking down trade-barriers, can Europe become more
prosperous and better able to compete with the United States. Is this so?
Throughout history, as we shall see in this chapter, the most prosperous
societies have been the freest. These are the kinds of societies that people want to
invest in because they can yield greater rewards than closed societies where
human action is frustrated. Would you have made more money investing in
North or South Korea over the years? Would you have done better, in the 20th
century anyway, investing in Taiwan or China? Is the European Union going to
overtake America as the worlds great power? Why do certain countries and
regions at certain times have ages of greatness?
The key to wealth-building is to be able to understand what company,
community or country is best positioned for a profit explosion. Internalize the real
foundations of freedom to generate a better understanding of this process. Dont be
taken in by mainstream manipulation of the truth about freedom. Learn how to
identify antifreedom trends that pose an immediate and obvious inconvenience
and possibly ruination at a later date.
Keep in mind that the concept of diffusionof power is an accident of history.
When it is buttressed by decentralized political power republican systems of
governance the resultant multifaceted density of sociopolitical and economic
options provides even average citizens with wealth-building opportunities.
Republics and Progress
In reading history it soon becomes clear that much of the greatest and
freest cultures and societies have an affinity to, and were founded within,
republics and republican forms of government. This does not mean that such
forms of government are the best, only that in these cases, such a form of
government laid lightly on citizens and impeded their activities less than other
kinds of governments.
The Greeks were among the first if not the first to configure a socalled republican government, one that included separate executive, legislative
and judicial branches. The Greek city-state that was most successful as a republic
was Athens. So successful was Athens, so independent its citizens, so brilliant its
playwrights, so beautiful its architecture, so powerful its philosopher/scientists

< 115 >

Plato, Socrates and Aristotle among others that municipalities and nations
elsewhere in the world down through the ages have envied Greek achievements and
aspired to create cultures rivaling theirs.
The Romans, too, during the republics expansionary years, set up a tripartite
government. And the Italian city-states during the Renaissance devised similar forms
of government. The United States was founded along Greek lines with a separation of
powers that might be intact today but for the Civil War, which changed the
complexion of the federal government and the way it related to the states.
Freedom and Leaders
It is important to understand what freedom is and how it is best preserved
and expanded. Freedom does not expand when countries are more efficiently run
or widened into regional consortiums. It is not the product of governmental
oversight, better legislation or grand, international forums where bureaucrats can
mingle freely and trade bribes. Wealth is not generated when bureaucrats
supervise the marketplace.
The idea that bureaucracy, national leaders, etc. can provide the vision
that makes a country prosperous is founded in a misunderstanding about what
generates wealth. Many times, in American political campaigns, an incumbent
will boast about how many jobs he or she created. In truth, people created the
jobs; not politicians, but individuals involved in individual human actions. And
they did not create the jobs for their country, or even the company for which they
work. They created jobs, or expanded businesses, because it was profitable for
them to do so and provided an individual benefit. The most successful or great
nations are those that have sociopolitical and economic systems that interfere
with individuals the least.
Of course, for many, this sort of statement smacks of libertarianism,
which is often confused with another word entirely libertine. Yet, a libertarian
society one in which the individuals human action is unimpeded by the state
and adjudicated privately should be conservative. Public displays of
intoxication and sexual gratification, and other overt behaviors, would have little
place in such a society. Lacking a litany of government regulations to keep peoples
behaviors in check, individuals would revert to the normal tools used in private
life religion and ostracism to maintain public order.
Codes of Honor
Instead of government-enforced politically correct behaviors, libertarian
societies (the few we have had down through history) have tended to rely on elaborate

< 116 >


Co n s p i r at i
The British Empire is very much alive and well today. [But] the United Kingdom
itself has very little to do with the new British Empire. England, Scotland, Wales, and,
especially, Northern Ireland, are today little more than slave plantations and social
engineering laboratories, serving the needs of a collection of families, numbering
no more than 3,000-5,000 people, who live and work in and around the City of
London, a one-mile-square financial and corporate district, which represents the
greatest concentration of financial power ever assembled in one location. These
families constitute a financier oligarchy; they are the power behind the Windsor
throne. They view themselves as the heirs to the Venetian oligarchy, which
infiltrated and subverted England from the period 1509-1715, and established a
new, more virulent, Anglo-Dutch-Swiss strain of the oligarchic system of imperial
Babylon, Persia, Rome, and Byzantium.
August 1997 post at The American Almanac,
The Largest Empire In the History of the World

codes of honor, privately enforced by ritualistic displays of violence duels

between the offended party and the one who committed the offense. Contrast this with
the current climate of forced socialism in America and elsewhere. Free-market
economist von Mises argued in Socialism that state-enforced communalism cannot
work. Eventually, the economic calculus is so distorted that society collapses, much as
the Soviet Union and even Red China, which is now a socialist state in name only.
Disregard the economic calculus and the sociopolitical one still looms large.
Coarseness overwhelms sensibility as peoples adult sense of self is eroded by the
nanny state. People mourn for a time of respectability long gone by and call for yet
more rules and regulations to discipline an increasingly restive, sullen, impoverished
population. Ironically, it is the socialist state, with all of its ambition to regulate and
rationalize every human behavior that is the libertine one. The libertarian republic
turns out to be the one that is orderly, mannered, modest and moral. Romes many
great historians and public orators gave voice to this when they mourned for the
virtues of the Republic during the later, longer, unfortunate days of empire.
Even a little freedom is better than the tyranny of bureaucracy and
concentration of power without the constraining invisible hand of the market.
William Everdell, for instance, dean of humanities at St. Anns School in Brooklyn, New
York, has written in The End of Kings, about the solution competing power

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centers, making it difficult for tyranny to take hold. The more of these power centers,
the harder it is for the society (Rome, for instance) to end up with a single, allpowerful emperor.
Everdell points out that founding father James Madisons definition of a
republic as representative government in the Federalist Papers, Number 10, has
helped create confusion. Madison later corrected himself with the term confederated
republic implying that a republics salient characteristic (as Samuel Johnson wrote
in his Dictionary of the English Language) is a government of more than one.
Everdell makes distinctions between kinds of republics, identifying some, for
instance, as aristocratic and others as democratic. In the Ashbrook Centers Federalist
Post, 1989, author R. F. Hassing quotes directly from the Federalist Papers to define
these terms. A democratic republic is one in which the delegated representatives are
drawn from the great body of the society so that the government derives all its
powers directly or indirectly from the great body of the people. In contrast, an
aristocratic republic is one in which an elite minority, a favored class with a special,
permanent and distinct interest is represented either exclusively or along with the
majority of the people. In an aristocratic republic, the representation of the favored
class [the aristocracy] cannot be changed or removed by popular elections.
Note how Hassing seems to have adopted Madisons initial use of representatives to define a republic rather than the more meaningful characteristic of
participation. It is a most important concept to understand. The United States, the
most powerful nation on earth (militarily anyway), is still nominally a republic. Other
nations adopting the name, if not the system, have had a fairly powerful effect on
history as well.
Examples of Diffusion
For purposes of this book, let us call a republic diffused government. By
analyzing some famous examples of diffused government, we will try to come to some
conclusions about why these kinds of societies seem to be more creative and cohesive
than most.
600-400 B.C. Athens (Mediterranean-based): Around 460 B.C., leaders of
the great city-state of Athens presided over a radicalization of power that shifted the
balance decisively to the poorest sections of society, according to the British
Broadcasting Corp. (BBC). This was the democratic Athens that won and lost an empire,
that built the Parthenon, that gave a stage to Aeschylus, Sophocles, Euripides and
Aristophanes, and that laid the foundations of Western rational and critical thought.
The BBC also admits that the democratic system had its critics. By the very
early 400s, democracy was under attack by Athenian oligarchs supported by Sparta.

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The insurgency won the day but could not hold on. Democracy resumed in Athens for
nearly another century until the kingdom of Macedon under Alexander the Great
became the suzerain of all Aegean Greece [and] terminated one of the most successful
experiments ever in citizen self-government.
While the Athenian experiment in democratic-diffused government was both
innovative and egalitarian, free-market economist Murray Rothbard provides a
somewhat different perspective in It All Began, As Usual, With the Greeks.
The privilege of citizenship was reserved to descendants of citizens.
While Greek city-states fluctuated between outright tyrannies and
democracies, at its most democratic Athens, for example, reserved the
privileges of democratic rule to 7% of the population, the rest of whom
were either slaves or resident aliens. (Thus, in Athens of the fifth century
B.C., there were approximately 30,000 citizens out of a total population
of 400,000.)

For Rothbard, the real miracle of Greece was its great burst of economic
thinking [that] covered only two centuries the fifth and the fourth B.C. and only
in one country, Greece.
He adds, There is no way that historians of thought can ever completely
penetrate the mysteries of creativity in the human soul, and thus completely explain
this relatively brief flowering of human thought. But it is surely no accident that it was


Co n s p i r at i
The best way to understand the evil of Venice is to look at the great poets' portrayal
of the unbelievable duplicity that Venice represented: portrayals by Marlowe in The
Jew of Malta, and by Shakespeare in The Merchant of Venice and especially in
Othello, the Moor of Venice. The quintessential Venetian is Iago. Yet the most
brilliant portrait of the Venetian method was done by Friedrich Schiller in his The
Ghostseer. You can never understand Venice by studying what positions the
Venetians took on an issue. The Venetians did not care what position they took. They
always took all positions. Their method was one of looking for the weak point and
corrupting the person. At this form of evil, they were the masters. Their diplomatic
corps was the best in the world at the time, and the British diplomatic corps was
trained by the Venetians.
The Venetian Takeover of England,
The Executive Intelligence Review, April 15, 1994.

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the Greek philosophers who provided us with the first fragments of systematic
economic theory. For philosophy, too, was virtually non-existent in the rest of the
ancient world or before this era in Greece. The essence of philosophic thought is that it
penetrates the ad hoc vagaries of day-to-day life in order to arrive at truths that
transcend the daily accidents of time and place.
Rothbard cannot fully explain Greeces Golden Age, but he points out that the
system of democracy Pericles installed and great Greek achievements do overlap. Thus
we may acknowledge that for a brief but powerful period of time Greece experienced
major economic, scientific, artistic and social progress miraculous really, according
to Rothbard and many other observers.
735-50 B.C. Rome (Mediterranean-based): The Roman Republic would seem
to be a diffused government, one initially made up of two assemblies, the assembly of
centuries (comitia centuriata) and the assembly of tribes (comitia tributa). This latter
included all citizens of Rome. Citizens could vote; however, the citizenry did not include
women, children and slaves. Around 500 B.C. a new form of Roman government was
introduced whereby power was divided up among a senate, consuls and assemblies.
Around 290 B.C., the Romans set up a governmental entity that included executive,
judicial and legislative divisions. The Roman republic finally ended with the death of
Julius Caesar and the assumption of the throne by Augustus. This period was marked
by a number of Roman conquests extending over several centuries and culminating
(during the period of Julius Caesar) in an extension of the Roman world to the Atlantic
Ocean, in the launching of the first invasion of Britain, and in the introduction of
Roman influence into what has become modern France.
While the highly efficient Roman military forces conquered fresh territories,
they left behind a trail of socioeconomic impacts: Conquests brought an endless
supply of fresh slave labor, making the poorer Roman citizens jobless, creating unrest
and unemployment among the citizenry. To keep them fed and engaged was a
daunting task for the administration. A number of measures including land reforms
were attempted on the one hand; on the other, certain events were institutionalized
such as inducing the criminals, outlaws and debtors to enter arenas for gladiatorial
combats resulting in death and mutilation. It is said that the Roman republic won an
empire, and destroyed itself in doing so.
1000-1400 A.D. Italy (Mediterranean-based): Rome before its emperors,
Greece, Italy during the Renaissance, Britain during its industrial revolution and, of
course, America before 1900 can all lay claim to some form of functional republican
government. By the beginning of the Italian Renaissance, there were five major players
in city-state politics: the papal states (or Romagna) ruled by the Pope, the republics of

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Firenze (Florence) and Venezia (Venice), the kingdom of Napoli (Naples), and the duchy
of Milano (Milan).
The Renaissance had elements of diffusion as well. Italy was made up of
numerous small states and from about 500 to 1000 A.D., urban centers within these small
states began to grow slowly. One of the most prominent was Venice, a marshy outpost
whose geography made it a logical candidate to serve as a center of trade and commerce.
Venice, and to a degree the rest of the Italian city-states, acted as clearinghouses for
banking and trade between Byzantine, Muslim and central European countries.
So Much Commerce
The influences of three different cultures that were brought to bear on the
Italian city-states generated a number of innovations, especially in the mercantile
fields such as banking. The Venetians, particularly, embarked on an extraordinary
venture via international banking that, for a while, made Venice, citizen for citizen, the
most influential and powerful city in the world.
An academic Web site, WorldCivilizations.com run by Richard Hooker, relates
the following: The aftermath of Justinians reconquest of Italy in 533 left the cities in
Italy largely depopulated; from 500 to 1000 A.D., Italy was largely a rural region with
few and sparsely populated urban centers. In the twelfth century, Italy saw a resurgence
of urban living which grew into a flood in the thirteenth century. The Italian cities,
especially Venezia (Venice), had long served as intermediaries in the trade between
central Europe and the Muslim and Byzantine states to the east. As they grew wealthy,
many of these cities became centers of banking long before the rest of Europe had
discovered this lucrative area of commerce.
According to Hooker, The constant uncertainty, both economic and political,
and extreme volatility of the historical situation provided the material for new
intellectual, cultural and social experiments. These would at their conclusion provide
the means of constructing a new European monocultural identity, one focused on
humanistic studies, science and the arts. Some of the most radical and far-reaching
cultural work in the Renaissance was done in the periods of greatest insecurity.
Of course, there are other interpretations of this phenomenon and other
reasons that the Renaissance states may have been successful. Lyndon LaRouche is an
extremely controversial sociopolitical and economic analyst who has been accused of
fomenting cults and brainwashing followers. However, his historical analyses are
often drawn along classical lines, as described above, and follow points of inquiry
beyond what is ordinarily available on the Net and even in academic literature.
LaRouches analyses emphasize the importance of the Renaissance as a point in

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the history of Europe when there was a major resurgence of what he terms
Platonic thinking. European culture gradually embraced the idea of progress, a
radical shift from feudalism, which was characterized by the Aristotelian view
of the universe as fixed and unchanging. LaRouche also believes that the
American Revolution and the adoption of the U.S. Constitution mark a
watershed in history, as the most successful attempt to put the republican
theory of politics into practice.
In this chapters conspirati presentations, we introduce comments from
LaRouches Executive Intelligence Review. These trace the history of the Venetian
republic as the LaRouchites see it. LaRouche in fact might disagree that Venice was a
republic in the normal sense of the word, but much of Venices influence was due to a
kind of political tribalism at least partially resembling a republican structure. And
certainly, the outsize influence exerted by Venice (whether one believes in LaRouches
details or not) was perhaps bolstered by its residence among the republican oriented
nation-states of Italy. Its achievements, especially in banking the good, the bad and
the ugly may be considered indicative of the power of this kind of social
organization.
Geography as Destiny
Perhaps the most interesting and broad-ranging explanation for why
certain epochs of civilization yield extraordinary creativity and scientific
advances comes from Michael O'Dowd, chairman of the Free-Market Foundation
and former chairman of the De Beers Group Chairman's Fund. ODowds
perspective actually builds on that of Everdell, taking the paradigm of competing
power centers and analyzing them from a geographical point of view.
In a post at FreeMarketFoundation.com, ODowd writes that periods of
outstanding creativity are quite few in human history then cites some of the
above historical episodes plus others that he believes are worthy of note. For
ODowd, these creative epochs began to make sense once he read a book about the
Tang Dynasty, circa 1000 A.D. The people of the educated class at this time looked
back to the time of Confucius as a golden age, forgetting that it was in fact a time
of anarchy known as The Period of the Warring States, when China proper was
divided into five separate kingdoms, often at war with each other.
The same sort of situation was present in fifth century BC Greece, ODowd
realized, where numerous warlike states existed in an uneasy balance. Italy, during
the Renaissance, was divided into at least six major states. The Eastern
Mediterranean after Alexander the Great was the same again. There were three

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Co n s p i r at i
It was one of the most well-known secrets of the British oligarchy, that the model for
the British Empire was Venice. Benjamin Disraeli, the late-nineteenth-century prime
minister of England, let the cat out of the bag in his novel Coningsby when he wrote,
The great object of Whig leaders in England from the first movement under Hampden
to the last most successful one in 1688, was to establish in England a high aristocratic
republic on the model of the Venetian. ... William the Third told ... Whig leaders, I will not
be a doge. ... They brought in a new family on their own terms. George I was a doge;
George II was a doge. ... George III tried not to be a doge. ... He might try to get rid of the
Whig Magnificoes, but he could not rid himself of the Venetian constitution. The wellknown secret of all the Whig insiders was that the Venetian takeover of England was a
200-year project beginning with the break of Henry VIII with Rome and concluding in
1714, with the accession to the throne of George I.
The Venetian Takeover of England,
The Executive Intelligence Review, April 15, 1994.

major, and several minor, kingdoms all ruled by Macedonians, often at war with
each other. The great period of the Arab world saw almost the very same kingdoms,
now ruled by Arabs, independent and sometimes at war. And ODowd adds,
There is the classical period of China, the time of Confucius and
Mencius, and the other Chinese Sages. At about the same time, there
is classical Greece, the age of Aeschylus and Euripides, Plato, Socrates,
Aristotle, Herodotus and Thucydides, Phidias and Praxiteles. The next
period is less well known since most of its art and literature had
perished and the only well known names associated with it are
Archimedes and Euclid. It is the period of the kingdoms ruled by the
successors of Alexander the Great, especially Egypt, centered on
Alexandra, and Syria, centered on Antioch and forming part of the
same world, the independent Greek cities of Sicily and Southern Italy,
especially Syracuse. To appreciate the importance of this period we
have to compare the level of general sophistication, both
philosophical and technical, reflected in classical Latin literature with
that of golden age Greek literature from four hundred years earlier.
We have to wait a long time for the next period which happened
in the Middle East around 1000 A.D. in the Arab kingdoms, especially
those centered in Baghdad and Cairo. Out of these came remarkable
advances in science and mathematics and in architecture. The wellknown Moorish architecture of Spain is an offshoot of this. After this,

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and in some ways directly derived from it, comes the flowering of
Renaissance Italy, Michelangelo and Leonardo Da Vinci, Petrarch and
Boccaccio, Machiavelli and Galileo. How are we to account for all
this? From the sixteenth century onwards it is not difficult to detect
the correlation between creativity and (relative) freedom. Though
very far from free in the modern sense, the England of Shakespeares
time, and the Republic of the Netherlands of the same period were
not merely the freest countries in the world at the time, they were
among the freest that there had ever been.

For ODowd, its not the wars themselves that are important for it is not clear
that there was more war than at other times.What ODowd thinks is key is that educated
individuals and entrepreneurs could move from one familiar environment to another,
without having to drastically rearrange their lives and those of their families, learn new
languages, etc. When Socrates was sentenced to death in Athens, he could, if he so
wished and was probably expected to go into exile, which meant moving all of 30
miles to another city where they spoke the same language, had the same culture, and
where he was known. When Dante was driven out of Florence, he went to live in Pisa and
carried on with his writing. When Michelangelo quarreled with the Pope in Rome, he
went home to Florence and continued with his work. There are references in Chinese
classics to sages moving from one kingdom to another because they disliked the policies
of a particular king. And ODowd concludes, Freedom is not a luxury that comes at a
cost. It is the precondition of all human progress.
Emergence of Classical Liberalism
In a 1994 essay entitled, The Rise, Decline, and Reemergence of Classical
Liberalism, Amy H. Sturgis of Belmont Universitys LockeSmith Institute makes several
points that are close to ODowds, while analyzing how free societies function for
humankinds betterment. She defines classical liberalism as exhibiting the following
characteristics:
An ethical emphasis on the individual as a rights-bearer prior to the
existence of any state, community or society.
The support of the right of property carried to its economic conclusion, a
free-market system.
The desire for a limited constitutional government to protect individuals
rights from others and from its own expansion.
The universal (global and historical) applicability of these above
convictions.

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Sturgis identifies the trends that came together in Europe in the 1700s that
would eventually develop into a cohesive classical liberal philosophy. In this story
three distinct flavors coexist and often blend: the realistic English tradition of law, the
rationalistic French tradition of humanism, and the organic German tradition of
individualism. [These three are] competing yet complementary definitions of liberty,
with Britain representing independence, France self-rule, and Germany selfrealization. The individuals and movements manifested themselves in two major
ways. They asserted ideas, as with [John] Lockes defense of property and [Alexander]
de Tocquevilles analysis of democracy. Also, they reacted to policies, as with the
Scottish Enlightenment and French Physiocratic responses to mercantilism.
It is now that Sturgis comes closest to ODowds view. She asks why classical
liberalism evolved as it did in the late 1700s, then answers her own question: It was
partly the result of increased European mobility and intellectual commerce.
First, the overriding European culture provided those with
assertions the opportunity to travel, test their theses against
observations, and communicate effectively. Second, the increasingly
interdependent nations of Europe could no longer contain their people
either economically (protectionism) or politically (absolutism), as the
citizens could travel and exchange information concerning conditions
elsewhere. For example, Englands lead in constitutionalism influenced
the classical liberals of the other nations, as did the United States
egalitarianism. Third, some policies such as mercantilism were not
successful and thus there was an audience for any alternative,
particularly one that worked. A number of combined conditions put
Europe in need of economic, political, and philosophical answers, and
classical liberalism responded.

Sturgis tells us that in the late 1800s, classical liberalism began to wane as
frustration with the Industrial Revolution generated a new mindset. The people
turned to the government, often more democratic in nature than before, to
regulate and legislate these transitional hardships away, thus substituting the
long-term problem of unprecedented governmental growth for the temporary
problems faced until the market adjusted to the new industrial economies.
What Sturgis is not so clear on is the intellectual construct that took the
place of classical liberalism rationalism. Rationalism (the Age of Reason) is
often seen as following the Age of Enlightenment, which itself emerged or coexisted with the Reformation though some trace it back to the Italian
Renaissance. There are perhaps distinct differences between the Age of Reason

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and the broader Age of Enlightenment, however, and they are critical ones for
Western history and the development of Western sociopolitical thought.
Rationalism is actually the philosophical tradition that has dominated
the last two centuries of Western thought. Rationalism is often referred to by
other names and its continued power in the 20th and now the 21st century is
often disguised or misdiagnosed. It remains a most controversial doctrine.
Curse of Rationalism
In practice, Rationalism has been an unmitigated disaster. Its application
spawned first the bloody French Revolution, then the scientific pseudophilosophy of Marxism, the romanticism of socialism, the brutal mercantilism of
Nazism, and on and on. Every ism in the modern world can be seen, fairly or not,
in the first and fiercest, modern ism, Rationalism.
The Age of Reason was a perfect philosophy for big government
throughout the 17th and early 18th centuries. Big government grew apace, with all
its attendant miseries and brutal, often bloody, failures. The expansion of the
English Empire, the rape of Middle Eastern and Asian cultures, the perversion of
the republican experiment in the United States were all outgrowths of big
government empowered by Age of Reason justifications appropriated by a
committed power elite.
By the end of World War I it was over. European governments were
massive, militarized affairs and the United States was heading in the same
direction. World War II provided the coup de gras for the kind of civilization that
the Enlightenment promised. It finished off the gold standard, private trade
across boarders, a freer, easier exchange of literary and scientific information. In
its place were increasingly ponderous, state-negotiated treaties and accords.
Modern European Afflictions
The classical-liberal world of individual rights, private property and civil
liberty died in World War I. Every one of the cherished and hard-won freedoms of
the 19th century were sacrificed on the altar of winning victory in that war. And
when the war was over, liberty, as it turned out, was the ultimate victim. Behind the
wartime slogans of making the world safe for democracy, the right to national selfdetermination, and a league of nations for the securing of world peace, nation-states
swelled with power. Wartime controls had replaced free enterprise; exchange controls
and import-export regulations had replaced free trade; confiscatory taxation and
inflation had undermined the sanctity of property and eaten up the accumulated
wealth of millions. The individual and his freedom had shrunk, and the state and its

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Co n s p i r at i :
T h e r ol e of Ve n e t ian Paol o Sa r p i
The second phase of the Venetian operations ... was launched by the notorious Paolo
Sarpi. It was in this phase that England's mind and soul were taken, and England was set
up to become the bastion of the New Age. ... This phase was highlighted by what was
understood in Venetian history as the 1583 fight between the Giovani (young houses)
and the Vecchi (old houses). In this phase, a very radical faction took over. The Giovani
realized that time had run out for the Islands of Venice. They were increasingly less
viable as a military force. For the Giovani, the only defense Venice had was a desperate
attempt to destroy both the papacy and the Habsburgs, by securing Germany for the
Protestants with the help of France. ... For this phase, the takover of England was left to
Paolo Sarpi. Paolo Sarpi was nominally a Servite monk who was exceptionally talented.
Yet he was much more. He was the leading organizer of the Giovani. Out of the Giovani
salons and secret society, Venice planned the destruction of Christianity in what was
later to be called Freemasonry.
In a book about Sarpi, a modern historian by the name of Wooton proves that Sarpi was
the creator of empiricism and taught Francis Bacon his so-called scientific method. The
thesis of this book, which the author proves conclusively, is that Sarpi, while nominally a
Catholic monk, revealed himself in his philosophical work to be a radical atheist. Sarpi
was to argue that the idea of the need for a providential religion, as the basis for the
majority of men acting morally, was unnecessary. He insisted that belief in God was
irrational, since it is not necessary to explain the existence of the physical universe by an
act of creation. This is the empiricism of Bacon. It was later revealed by sources that Sarpi
was a homosexual and a blasphemer, who believed that the Bible was just some fantastic
stories. He especially attacked the idea that Moses was given the Ten Commandments by
God. ...
Some of you may be aware of the phrase, The pope is the Anti-Christ.'' It was Paolo Sarpi
that created that myth. He is the real founder of modernism and the Enlightenment.
With these ideas, he created a pagan cult later called Freemasonry, which dominates
England to this day. Out of this salon came Giordano Bruno, Galileo (a complicated case),
the Rosicrucian cult, and the Thirty Years' War.
The Venetian Takeover of England,
The Executive Intelligence Review, April 15, 1994.

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power were now gigantic.

World War II was a disaster for many of the nation-states involved. It was also
the catalyst for a cure that would be worse, if possible, than the disease a united
Europethat began to take shape almost before the last bullet was fired. Ironically, it was
apparently the German dictator Adolf Hitler himself who actually grasped the power
inherent in a European union. As a young man stationed in Berlin, diplomat and
Trilateralist George F. Kennan writes in his Memoirs that he was struck with the fact


Co n s p i r at i :
Ve n e t ian G iovan i : E n g l an d s Ta k e ov e r
The Giovani very consciously had to build up their own faction among the English
nobility. England had to be totally controlled. The drawback that the Giovani had to
correct, was the fact that England was not really reliable, because the kings tended to act
independently of Venetian strategic considerations. The way the Giovani functioned
was by the creation of a Protestant-controlled merchant class. This was most explicit
with the creation of the Venice Company by the Earl of Leicester, the funder of the
Puritan movement in England. It was he who was granted by Venice certain trading
routes. In 1581, another trading company was created with Venetian agreement, called
the Turkey Company. These two companies later merged and became the Levant
Company, which later became the infamous British East India Company. The first
governor of the East India Company was Thomas Smythe, who studied law in Padua.
Through this process of creating a rich merchant class, predominantly Puritan, Venice
also created a battering ram against the king. These radical Protestant cults took over
England during the so-called Commonwealth period.
While it takes some 80 more years to complete the Venetian takeover of England ... the
empire of the mind became ensconced in England. Sarpi and Venice create the
Rosicrucian cult of syncretic religion that becomes Freemasonry. Once that process of
takeover is complete, England becomes the bastion of paganism: usury and slavery. In
short, real Aristotelians. This hatred of imago Dei is the basis of England's promotion of
the New Age. This was Sarpi's program and intention, and it completed the essential
destruction of the English soul. Venice and Venetian methods had transplanted
themselves in England.
The Venetian Takeover of England,
The Executive Intelligence Review, April 15, 1994.

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that Hitler had actually accomplished much of the technical task of the unification
of Europe. He had created central authorities in a whole series of areas Why, I asked
myself, could this situation not be usefully exploited after an Allied victory?
Kennan became involved at a top level with the United States gigantic postwar, European welfare program, the Marshall Plan. That programs massive funding
was in part configured to begin the job of the unification of Europe and thus the
first steps toward unification were taken.
The project took a false turn with the Council of Europe and the European
Parliament,according to R.W. Keyserlingk in Fathers of Europe.What was eventually
put into place was an economic rather than political union. And thus it came to pass
that unification began with such issues as workers rights and freedom of movement.
Only after years, even decades, had passed, did the discussion drift toward areas of
increasing criticality such as trade and the establishment of a single currency. Of
course eventually, inevitably, the shadowy elite at the top of the EU returned to the
idea of political union.
Brussels mandates became broader, the goals clearer and finally a European
constitution was produced, filled with turgid prose and arrogating powers of every sort
to the state. The preamble provides the flavor: Reflecting the will of the citizens and
States of Europe to build a common future, this Constitution establishes the European
Union, on which the Member States confer competences to attain objectives they have
in common. The Union shall coordinate the policies by which the Member States aim
to achieve these objectives, and shall exercise on a Community basis the competences
they confer on it.
It may have been intended for Member States [to] confer competences to
attain objectives, but no sooner had it been launched than it was rejected by several
countries including EU-founder and main proponent, France.
FMNN commentator and free-market thinker Dr. Helen Szamuely has written
articles that expose the real power agenda of the European Union on an almost daily
basis. Her analyses, among others, helped clarify the real issues underlying the EU
constitutional debate and ultimately helped lay the groundwork for the rejection of
the flawed document. We must get back to the Conservative concept that the State
exists to serve the people and that the people are genuinely sovereign. Szamuely
points out in a May 2005 FMNN post, Who Governs Britain.
It should therefore be a central tenet of a Conservative
government that it cannot delegate its law-making powers ... This
applies to external bodies such as the European Union and internally,
where currently so much effective law is made by officials without
political input or control. Law-making must remain in the hands of

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politicians directly elected by the British people ... affording the

people an opportunity to remove legislators. ... It is ludicrous that over
60% of the laws imposed upon the fourth largest economy in the
world are created by people who have not been elected and cannot be
removed in elections.

We can see, as Szamuely has pointed out, that the EU member-states grant
or remove citizens freedoms which are, in fact, competences conferred by

Alternative Reality Byte:

Socialism One Definition
The power of the Internet is manifest in this excerpt below, from a site, mega.nu, maintained
by journalist Daniel Pouzzner.
Socialism is a social movement that began in eighteenth century Europe, and is now the
organizing principle of many of the worlds political establishments, and the faith of much
of the worlds population. It is a loosely bound cultish religion, centered cryptically on the
biblically revealed premise that humanity once enjoyed a paradise, long since lost. To
varying degrees, the modern proponents and adherents of socialism have internalized the
ancient mythology specifically, mostly subconsciously. They believe they can, through ritual
propriety, restore earthly paradise as a new Eden, tended by a benign paternal authority
tantamount to that tending the mythical Eden. This monotheistic messianism has been
largely transmuted into faith in an eventual world government acting as an omnipotent,
omniscient, infallible savior, empowered by ideologically regimented voters. Clearly,
socialism is also abstractly millenarian and apocalyptic. Socialists empower their deified
governments to pass judgement on the people and purge (by extermination or radical disfranchisement) those deemed unworthy of life, in order to realize the promised idyllic
society. One can plausibly describe socialism as a form of ultrareactionary biblical
fundamentalism, albeit aiming to reinstitute conditions under which humanity and its
forebears never really existed.
Deified government is simply a modernization of the divine right claimed by kings and
emperors throughout world history. As for the idea of Edenic paradise reconstituted on
earth, this is actually found in the Hebrew Bible itself, in Isaiah and the Psalms. The overt
messianism of the Abrahamic religions and Zoroastrianism is tantamount to Edenic
reconstitution, and (at least in the Abrahamic ones) in most cases clearly relates to the Eden


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member states. This actually flies in the face of the historical lessons that have
been learned over and over. The truths of these lessons may be found in powerful
historical analysis that the cause of freedom is best served when power is diffused.
To this end, the American republic functioned well to begin with because the
powers of state were radically distributed among three separate arms of
government plus a number of states and state assemblies. This diffusion of power
was more responsible for the success of the initial venture than various
constitutional agreements.

motif specifically. Their messianism is just as utopian as socialism's, and through syncretion
with their occult derivatives and with Buddhism, it serves to elaborately theologize
socialism under the New Age banner. In the New Testament, Matthew, Mark, and Luke, all
tell the same story, exhorting the faithful to radical egalitarian charity, and promising the
eternal torment of damnation for those who refuse. Thus, on a deep level, Jews, Christians,
and socialists, are coreligionists, and their squabbles are sectarian.
The eighteenth century was the setting for the inception of organized socialism. At the time,
the apparent juggernaut of rationalism (revived in the Renaissance and culminating in the
scientific method of the Enlightenment) was widely and reasonably perceived to threaten
with imminent collapse the traditional religious faiths of Europe. Because religious faith is,
at heart, open belief in the plainly preposterous, this was only natural. Moreover, because
traditional religion is transmitted chiefly by authoritative speech, and fails without it, it was
particularly vulnerable to Enlightenment rejection of authority. The perception of a threat
was particularly pronounced among the intelligentsia, who most thoroughly embraced the
tenets of the Enlightenment. People with a psychological appetite satisfied by traditional
faith were thus receptive to an equipotent replacement, one that was not immediately
vulnerable to demolition by Enlightenment rationalism, naturalism, and libertarianism.
Enter socialism, appealing to this appetite, conceived and promoted by men who shared
this appetite, and who moreover were intensely conscious of the rationalist threat by dint of
residence in the social heart of the Enlightenment. Consistent with this account, the embryo
of socialism came out of Renaissance Italy, borne by the Sozzinis. Socialism is a sort of ark
amidst the flood of rationalism, harmonizing with the Enlightenments theme of
progressive improvement of mankind, and keeping alive certain fundamental themes and
promises of the Abrahamic tradition, including the premise that deaths have spiritually
redemptive power for the dead and living alike. Ironically, the parents of socialism the
idealists are to this day considered key figures of the Enlightenment, and the Sozzinis
and their Brethren are credited with spurring its birth.


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Elite Retreat
Britains Prime Minister, Tony Blair, faces a bruising six-month stint as president of
the European Union as Jacques Chirac plots revenge for the weekends summit
showdown in Brussels. Blair accused Chirac of arrogantly refusing to learn the
lessons of Frances no vote on the E.U. constitution. The German Chancellor, Gerhard
Schrder, said of the deadlock: We are in one of the worst political crises Europe has
ever seen. Visibly shaking with anger, Luxembourgs Prime Minister, Jean-Claude
Juncker, who holds the E.U.s presidency, in effect accused London of intentionally
scuttling his attempts to strike a compromise on the budget by calling for a broad
rethink of the blocs finances in a late stage of negotiations.
Compilation from Daily Telegraph and the Agence France-Presse,
FreeInternetPress.com, June 2005

Storm Warning
The regionalization of nation-states and centralization of power as in the
EU eventually yields oppression, not efficiency. The apparent thrust of the power
elite strategy is to merge and centralize so as to do away with multiple power nexuses.
Ironically, this urge to merge can have initial beneficial effects on freedom in the
short term. The merger or fusion(as opposed to diffusion) of European currency into
the euro made it easier for individuals to do business in various geographical areas.
This is probably a reason why the EU has seemingly maintained the support of many
Europeans despite the blizzard of regulations out of Brussels.
The support does not, however, run especially deep as we can see from the
rejection of the European constitution. More importantly, once the concept of
diffusion is understood, the underpinning of much of the international sociopolitical
and economic conversation becomes fairly ludicrous.
If nation-states are a source of instability, after all, what makes the power elite
so sure that an even larger state construct will work out better? If the problem in
Europe resided in border bureaucracy and tariffs, what makes the wise men of Europe
so inordinately sure that a super-bureaucracy in Brussels grinding out thousands of
regulations a year is the antidote?
The idea that more and bigger government is the cure for smaller, ineffective
government makes little sense. If something is actively making one sick in fairly large

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doses why is it reasonable to expect that it will somehow be less sickening in even
bigger doses?
Economic Action Alert
Consider EU investments, but not if the political union threatens to
overwhelm the positive benefits of currency fusion. Diffusion can be found within
successful political systems that have competing power centers. In fact, it is a cause of
this success. Yet the fusion of European currency into the euro made it easier for
individuals to do business in various geographical areas. This is probably a reason why
the EU has seemingly so much support. The support is very shallow, however, as we
can see from the rejection of the European constitution. What citizens of the EU are
saying implicitly is that they recognize the empowering effects of one currency but
they seek to avoid the freedom-stifling impact of a single political system. From an
economic standpoint, European equity opportunities remain a potentially healthy
source of profits so long as the benefits of the common currency outweigh the
negatives of the impending political union. If and when the political unions
regulatory mechanism overpowers the benefits of the economic union, the EU will
cease to be a relevant source of positive investment returns.

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7
Power elite interference in the U.S. Republic and economy.

U.S. TSUNAMI
The President does not have unlimited executive authority, not even as
Commander-in-Chief of the military. Our government was purposely created with power
split between three branches, not concentrated in one. Separation of powers, then, is not
simply a talisman: It is the foundation of our system.
January 2006, FindLaw.com, The Unitary Executive
High Alert
The United States was once a republic and a powerful engine of industry. Even
today, the culture of the United States is determinedly entrepreneurial. The Puritan
work ethic is still very much a part of many peoples lives. Strong-willed men and
women, desperate for economic opportunity, sailed across the sea to start over in a
country they perceived as a bulwark of freedom. And millions of Americans, many in
the red states descendants of bold immigrants still believe in a constitutional
republic. These citizens are not enamored of European socialism and the assumption of
government infallibility and they will continue to resist it, even as their political
system moves in that direction.
While the mainstream media portrays the American legislative choice as one
between liberals and conservatives soft socialism versus soft fascism a
predominant American sociopolitical strain actually continues to be civil libertarianism.
This same political viewpoint can be found in Canadas western regions. It goes little
remarked upon, unfortunately, but it just may be that Canadian-American civil
libertarian sympathies are more prevalent than either liberal or conservative views in
either country. Many citizens in either country do not want the government in their

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bedrooms. Just as many do not want the government in their wallets either.
Canada is a special case because the French in Quebec have made it all but
impossible for the Anglospheres Ottawa-based government to effectively federalize the
country as has been done all-too-successfully in the United States. The politics of diffusion
are still noticeable in Canada where, despite its best efforts, the government often cannot
muster votes to pass the kinds of laws that attack citizens fundamental rights. When it
does, as with overarching gun laws, those laws are often defied or ignored.
In America, unfortunately, the decline of individual rights is marked and
accelerating. The war on terror has dramatically increased the trend. Americans are no
longer secure in their houses from government seizure, their phones and e-mail are
apparently subject to scrutiny without warrants and increasingly the political power has
shifted away from a so-called imperial congress to what is now being referred to as the
unitary executive.
Since America is a most important key to the worlds economic health, it is
important for free-market thinkers to arrive at adequate conclusions about the
countrys current condition and prospects. In the first couple of chapters in this book,
we discussed the state of the union from an economic standpoint and concluded that
an economic hurricane was striking with increasing force. What we left out in those
chapters was the reasons for the jeopardy. Unlike a physical hurricane, there are steps
that can be taken, ahead of time, to head off an economic storm. That the United
States could not do so is an unfortunate testament to the relative inefficiency and
ineptness of its legislative and financial bureaucracy and the lack of any domestic
challenges to their incompetent reign.
For at least 200 years, (excepting the Civil War) America was generally governed
with a fairly light hand. It is only in the 20th century that the full force of the regulatory
state has crashed against her shores and begun to hollow out a once-powerful
economy. The more fusion that occurs, the more unitary power that President Bush is
able to command, the more difficulty the American experiment will undergo. If the
trend does not shift, and centralization continues, the alert free-market thinker may do
well to consider alternatives that place his or her family in a safer and more respectful
environment elsewhere in the world.
As the end of the chapter shows, the United Statestraditional freedoms are not
only eroding, but the actual country itself is under attack. Its borders are in jeopardy and
its cohesiveness as a sovereign nation in some doubt. As shocking as this sounds, what is
even more so is that the attack is not by foreign terrorists, but seemingly by those
within the nations political structure elected representatives at the highest levels
alongside, predictably, the visible power elite.
Let us examine how this process came to pass, in order to understand better

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where it is headed and what it portends from financial, economic and even
sociopolitical perspectives.
Initial Victory?
The great founding father Thomas Jefferson initially won the day on a
number of fronts. He fought a successful fight to restrain the federal government
and to ensure the Constitution enumerates only the powers that the federal
government has received from the states. It should be fairly clear to anyone who
studies the document that it was the states, not the federal government, that held
the balance of power in the initial relationship between state and federal authority.
Senators were to be elected from state legislative bodies and this was done until
a constitutional amendment changed the procedure to direct elections at the turn
of the 20th century. The writings of various founding fathers refer to these united
States a phrase that reflects a voluntary association of states, not an individual
super-state bound together by a federal authority the United States a
nomenclature in vogue only after the Civil War.
While it is tempting to present the fall of the U.S. republic as a direct result of
malevolent and ancient global elites and their machinations and certainly on the
Internet you can find such history it is also worth noting that the ascension of the
Internet has empowered individuals, even individual voters. It has likely given them the
ability to act as citizen journalists who can find out in some detail about the politicos
who wish to represent them, and their strengths and failings.
While this provides hope for the future, modern-day, free-market
historians such as Thomas J. DiLorenzo, show fairly conclusively that the breaking
point for the republic was the Civil War. And the operative executive force, for all
the many good qualities he may have had, was President Abraham Lincoln a
successful lawyer seemingly under New York industrial and banking control
someone whom today we might categorize as one of the power elite himself. Once
Lincoln was in power, the republics incipient decline was, unfortunately, not in
doubt. In a 2002 interview carried at WorldNetDaily.com, DiLorenzo discussed
Lincoln and his agenda following the publication of his ground-breaking book,
The Real Lincoln.
[Lincoln] was a Whig, and for decades the Whigs and Lincoln
advocated doling out tax money to corporations for building railroads
and canals. Presidents from James Madison on vetoed this, because
Madison said he could find no place in the Constitution where you could
justify giving any private business taxpayer money. This was a big,
ongoing political debate during the last half of the 19th century that was

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ended at gunpoint when Lincoln was elected president. The Whig Party
was the party of empire. I think the Whigs, as well as the Republican Party,
wanted to change governments role as a defender of individual liberty. I
dont think the Republican Party was especially interested in the welfare of
the black slaves in the South. They wanted the empire to be financed with
high tariffs to protect Northern manufacturers, mostly, and Lincoln was a
career-long protectionist.
The Declaration of Independence was a declaration of secession. I
write in the book about how after Thomas Jefferson was elected, the
Federalist Party was so upset that for more than 10 years they plotted to
secede. The party actually held a secession convention in Hartford, Conn.,
in 1814. They decided not to secede, but all during that whole saga, no one
really questioned the fundamental right of secession. In fact, the leader of
the whole movement was Massachusetts Senator Timothy Pickering. He
said that secession was the principle of the revolution.
I quote John Quincy Adams in my book. All of the founding
fathers wanted the Union to thrive. But Jefferson and John Quincy
Adams, who were certainly the staunchest Unionists, also said in an
1839 speech about secession that in dissolving that which can no
longer bind, we would have to leave the separated parts to be reunited
by the law of political gravitation to the center. In other words, let
them secede if they want, and well hope that theyll come to their
senses and reunite some day. Even the staunchest Unionists, like John
Quincy Adams, said things like that, as did Alexander Hamilton.
Alexander Hamilton said to coerce the states is one of the maddest
projects that was ever devised.


Co n s p i r at i
The Rothschild-Vatican cabal unsuccessfully attempted to gain control over the power
of the purse in the United States through the First and Second Bank of the United States.
They were established under emergency powers granted to the President by the
Constitution, as temporary institutions to tide the country through the periods of
financial stress occasioned by the Revolutionary and 1812 Wars. But the aims of the
conspirators to establish a banking monopoly were thwarted by the Constitution. Until
the Fed.

IlluminatiNews.com

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In writing about the Civil War, it is always necessary to point out that to the
degree the war helped free African-American people in slavery, it was good. But the Civil
War changed the balance between the states and federal government by taking away
states right to secede, as DiLorenzo notes. Once this was done, there was nothing
to stop the growth of the federal government and grow it has to 20% of the
nations entire gross national product.
Post-Civil War, the entire sociopolitical history of the United States has
been one of gradually increasing centralization of power. Meanwhile, in England
and elsewhere, slaves received freedom without such a bloody war. Also, it is very
doubtful that the institution of slavery itself a government-supported
initiative would have survived into 20th century America. The Industrial
Revolution would have killed the slavery, and the South would have withered with
it and without such a horrible conflict and the effective end of one of the
worlds great experiments in freedom.
What the United States received from the Civil War was mostly the worst
of all worlds. The republic itself was fractured and the human bulwark of
Jeffersons agrarian republic mostly in the South millions of courageous
young men, watered the tree of liberty with their blood to no avail.
The New York industrialists and bankers who bankrolled the Lincoln
administration likely in league with European bankers, were evermore fully
empowered. As America fell back under the European influence, the monetary
and fiscal policies of ancient regimes began to be implemented. Taxes climbed
and power was increasingly centralized in Washington. Using the 14th
Amendment as a pretext, the federal government began to claim expanded
powers separate from the states, which, once upon a time, were supposed to
supervise it.
Unconstitutional Creations
As the Northern industrialists and bankers achieved a preponderance of
power, speculation and financial trading were enculturated while the trades, crafts
and family farming became less important. By the late 18th century, the stock
market had begun to take on some of the trappings of the 20th-century securities
industry. Stocks surged, then fell, manipulated by financiers, railroad builders and
various flavors of European money power. By the 1890s, major American
financiers such as the mighty J.P. Morgan felt bold enough to speak openly about
a bank of last resort and then possibly to help engineer an artificial stock
panic from which Morgan himself, not surprisingly, emerged as a much-storied
savior.

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Morgan, ever humble in his own way, was not, however, willing to bask
in glory but promptly called yet again for the establishment of what
amounted to a central bank. It was a call that was repeated for years to come,
Finally, in 1913, Morgan and the money power behind him were successful in
installing, first, a central bank (the Federal Reserve) and, second, a graduated
income tax.
The two financial regimes, together, gave the federal government even
more control over individual citizens. Just as importantly, both unconstitutional
creations also violated the laissez-faire principles that had made America a great
industrial power. Gradually the income tax would hollow out Americas
infrastructure as big business chose to move elsewhere where it could operate
with fewer taxes and less intrusive oversight. Meanwhile, the Fed was the
mechanism through which the powerful European-based money interests would
drain the prosperity from the most productive free-market economy the world
has ever known.
European and American banking interests were busy in other areas of
the globe than Europe and the United States in the late 19th and early 20th
centuries. One of their main triumphs, astonishingly enough as Griffin has
shown in The Creature From Jekyll Island was the grafting of an extreme
form of socialism onto the ailing tree of Greco-Oriental governance. Griffin has
documented this amply in his chapter Masquerade in Moscow, which begins as
follows: One of the greatest myths of contemporary history is that the Bolshevik
Revolution in Russia was a popular uprising. the planning, the leadership, and
especially the financing came from outside mostly from financiers in Germany,
Britain and the United States.
Throughout the chapter, Griffin traces the financial support that
would become the Soviet Union life. Leon Trotsky, Edward Mandell House and
others, including President Woodrow Wilson, aided and abetted the glorious
revolution. Griffin quotes historian Antony Sutton as calling Wilson the
fairy godmother of the Russian revolution. At Houses request, Wilson
provided Trotsky with a passport to return to Russia to carry forward the
revolution.
Griffin concludes that the American Red Cross was used to conceal the
activities of American financiers in Russia. After the ascendancy of Bolshevism,
both the English and American power elites used the connections they had
formed by funding various factions of the Russian Revolution to obtain
profitable business concessions which returned their initial investment many
times over.

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Colonel House
The visible power elite aiding communism in Russia had also achieved
victories for centralization fusion with the installation of central banking and
the graduated income tax in the United States. But the rest of the 20th century would
see consolidation of power in the United States that could hardly have been
visualized in the 1800s.
Lincoln had been fusions most important operational executive in
his century. In the early 20th century, Colonel Edward Mandell House
(Colonel was an honorific) emerged in a similar role. House, in fact, can be
seen as a kind of human clearinghouse for the money power of his day. He
apparently helped in the formation of many of his centurys centralizing
instruments the Council on Foreign Relations, the Federal Reserve and the
League of Nations. On his deathbed, House was said to have told those near
to him that he had been closer to the center of things than almost anyone
knew. Today, his role in many of the most important events of his age is
increasingly clear.
Here is just one example. Apparently an original and valid document,
the Col. E.M. House Report lays out in detail Houses plans for the League of
Nations. The language, according to some, indicates that the League was
actually a transparent and ultimately failed attempt at creating a one-world
government. The 10-page progress report dated June 10, 1919, may or may
not have been written by House, according to those who have posted it
online one copy of which may be read at BibleBelievers.org. The letter is
written from the British Consulate in New York City and addressed to thenBritish Prime Minister the Right Honorable David Lloyd George.
Peaceful return of colonies to Crown: From the moment of my
arrival here, it was evident to me that such an Anglo-American alliance as
would ultimately result in the peaceful return of the American Colonies to
the dominion of the Crown, could be brought about only with the consent of
the dominant group of the controlling clans. The Rhodes scholarships are
inadequate in number. I would suggest that the Carnegie trustees be
approached to extend to American students the benefits of the scheme by
which Scottish students are subsidized at Scottish universities. If necessary, a
grant from the treasury should be obtained for this excellent work, which
however, should remain for the present at least outwardly private
enterprise

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U.S. newspapers isolated: The censorship, together with our

monopoly of cables and our passport control of passengers, enables us to
hold all American newspapers as isolated from the non-American world as if
they had been on another planet instead of in another hemisphere. The
realization of this by the Associated Press and the other universal news
gatherers was most helpful in bringing only our point of view to the
papers they served. British-born editors and reporters now create imperial
sentiment in most American newspapers. As their identity and origins are
not usually known, they can talk and write for us as Americans to
Americans.
Pierpont Morgan & Co. financiers of Anglosphere: In the
financial world the Anglo-American alliance is a well-established fact. And as
the consortium for China, and the security company for Mexico show, our
brokers and their aids have become the unchallenged financiers of the
world. We have been particularly fortunate in our fiscal agents here, Messrs
Pierpont Morgan & Company. They advantageously placed our many bond
issues and every American holder of these bonds having now a stake in the
Empire as a defender of its integrity and a potential supporter of its
extension over here.
Roaring 20s
Despite Houses high hopes for the League of Nations, it did not
succeed. It was dependent on the Great Powers to enforce its edicts. Perhaps,
most importantly, the man on whom Colonel House and others had
depended to drive the League forward, Woodrow Wilson, was incapacitated
toward the end of his term by a stroke. The vote by the U.S. Congress in 1919
not to join the League was a blow. But even this may have been overcome in
time had Wilson retained his health. His stroke felled him and probably felled
the League of Nations as well even though it actually took World War II to
help formally dissolve it.
With Wilson and the League of Nations out of the picture, central banking
took up globalisms aims in the 1920s and beyond. This chapter in American
history has been well-narrated by such economists as Murray Rothbard and
economic historians such as Carroll Quigley and, of course, Ed Griffin. Griffin,
especially, has identified the driver of the Roaring 20s as Britains odd central
banker Montagu Norman, a man who fancied walking sticks and black, swirling
capes and enjoyed traveling around the world on ocean liners incognito.

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Norman wanted the pound to return to its position of prominence and

found willing partners in officials running the newly minted U.S. Federal Reserve.
Quigley has provided us with a pointed description of Norman: [He] was a
strange man whose mental outlook was one of successfully suppressed hysteria.
When he rebuilt the Bank of England, he constructed it as a fortress prepared to
defend itself against popular revolt, with the sacred gold reserves hidden in deep
vaults below the level of underground waters which could be released to cover
them by pressing a button on the governors desk.
The idea, according to this odd, dramatic man, was to bring the pound back
to its pre-war status by devaluing other currencies, especially the U.S. dollar. The
devaluation was to be provided by printing so many dollars that the British pound
would gain in value relative to the dollar. Norman and his counterparties at the
Federal Reserve also agreed on the need for a universal gold standard with what
Quigley calls an artificial value set for the benefit of England. As the Fed printed
more dollars, the U.S. economy itself caught fire a conflagration that reached its
peak in 1929 when the overstimulated American stock market finally crashed,
taking markets around the world with it.
A monetary contraction and a full-shelfs worth of sociopolitical and
economic regulations soon followed. These, plus tariffs and other assorted
government initiatives, slowed and then stalled any momentum toward recovery
either in America or overseas. By the later 20th century, the American republic
would have been largely unrecognizable to its founders.
Modern-Day Colonel House
From Lincoln, to House to David Rockefeller. Much as Wilsons second
brain served as kind of clearinghouse for globalism in the early 20th century
efforts, the later 20th century belonged to David Rockefeller. Hard-money
commentator and long-time Rockefeller watcher Hans Schicht has this to say
about him.
There is however one single man, who hates publicity and loathes
the masses, a man who more than anybody else has left his imprint:
born 1915, his name is David Rockefeller. He made New York the
capital of the world. Under him the Council on Foreign Relations and
the Tri-Lateral Commission drew up the blue print for the post-war era
centered around a United Nations. The land upon which the United
Nations building rests was his grant. It was David who in 1944 had the
Bretton Woods conference convoked, to draw the rules for the post-war
international monetary relationships. It was David who stood behind

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the foundation of the IMF, the World Bank, the Bilderbergs, the many
G-x Meetings and the World Economic Council. Whatever important
events occurred in the last 70 years, be it the Land-Lease to Russia, the
Marshall Plan, the decolonization movement, the Alianza para el
Progresso, the Point Four program, the Peace Corps, the opening up of
China and Russia, they all carry the stamp of David Rockefeller, his
Council on Foreign Relations and his Tri-Lats.

As chairman and chief executive of Chase Manhattan from 1969 to 1980

and chairman until 1981 Rockefeller commanded the wealth and power of
Americas preeminent commercial bank alongside his own wealth and the family
trusts he controlled about $7 to $10 billion. If one adds in the assets of Chase itself,
Rockefellers monetary control verged on the hundreds of billions. The leader of
Chase occupied a chamber directly in the heart of America beating with economic
and military might.
Rockefeller, in fact, probably functioned throughout the later 20th century
as the unappointed head of the Federal Reserve. Paul Volcker, Alan Greenspan, Ben
Bernanke and other Fed chairmen all worked in his employ in some capacity at one
time or another. It has also been claimed with some authority that many of the
most powerful federal appointments as well as various candidates for president of
the United States were subject to his approval.
In a July 2003 post on Gold-Eagle.com, From a Different Perspective, Schicht
writes: I have observed many top people in my life, but never have I met anybody
of the caliber of David Rockefeller and never have I experienced a man radiating
greater power. When Nestor Kirchner visited the United States, the electronic
pages of the first Argentine newspaper, la Nacion, did not even mention Kirchner
meeting Bush, but a full account plus photos was carried of Kirchner sitting for
luncheon between Rockefeller and the president of Citigroup, William Rhodes.
U.S. Financial Century
Schicht also provides us with a fairly clear evolution of the U.S. financial
century which will probably be seen by monetary history books as
corresponding roughly to David Rockefellers mature life span. The actual evolution
of the American financial century is rendered as follows:
Europe after the second world war was kaput. Not only were they
conquered but so were the victors like England, inclusive its bankers.
After WWII, the Bank of England was flat-out broke. In England and on
the continent reigned financial austerity. No Maynard Keynes policies

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were applied in post war Europe! Penny pinching was the recipe. After
the post war mega power shift, any stories about the Rothschilds or the
Bank of England still holding much sway in the U.S. FED, must be
discounted. After the second World War New, Yorks bankers were quite
capable to take care of their own FED and take on the world! It was New
York, that rolled out the red carpet for Maynard Keynes in Bretton
Woods. The same New York, that thrives on paper and credit creation
and does not care the hell about financial discipline. Bretton Woods was
the authentication of the great post war power shift. It heralded the
beginning of global American financial expansionism. Bretton Woods
brought the IMF and the World Bank, both controlled by New York, to
serve as launch pad for the post war American dollar and financial
expansion.
Once the second World War was over, New York launched its
worldwide dollar offensive. It is New Yorks financial aggressiveness
which brought the wrath of the world on to America. New Yorks dollar
imperialism wrongly has become associated with America as a whole.
The outside world does not realize that the American people
themselves are likewise burdened with a heavy debt yoke imposed by
the same bankers, and that the American people have no idea about the
harm caused overseas by the extravaganzas of American Banks.
American preaching of freedom for all, forced Europe to decolonize its
overseas territories. And once decolonized, the U.S.A. stepped in, the
dollar following. Only the French franc-zone did offer some resistance
to the dollar tide. Where British trade and enterprise had dominated
South America with the Pound Sterling up to World War II, in the
shortest time of around 15 years, South America changed from sterling
to dollar territory. And before we knew it the whole world was on a
dollar standard.
That leaves the New York bankers in control of the worlds finances,
its markets, economies and its people, through a system, tighter, more
efficient and binding than any dictator could ever have dreamt of, and
all that in anonymity! Who was it, that Herbert Hoover called the
Master of Deceit? Today we can say, that it is not the clothes of the
emperor which are invisible, but it is the Emperor himself, who is
invisible. The great question is: how long can such a suppressive
paper empire last? The answer is: only as long as alternative stores of
value can be withheld from the people. And that is the very reason why
the outcome of the gold and silver battle is of the utmost importance.

Schicht seems to believe that Rockefeller has worked alone, aligning Rockefeller-

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controlled money interests to those of Old Europe but seeking to dominate the
advancement of centralization and internationalism through Rockefeller-founded
institutions such as the United Nations. Schicht also believes that the fiat-money push
of the late 20th century was a Rockefeller-influenced approach to global finance and
wonders how the worlds monetary system will survive Rockefellers passing.
Interestingly, Schicht instructs readers to look at the solid base building of gold and
silver and at the growing warning signs of looming panic on the bond markets. It is
bonds which are the antithesis to gold, not stocks.
For Schicht, as for some other observers of the internationalist scene,
Rockefellers age has meant a slippage of control as regards modern foreign policy.
However, another observer of the global power elite, Will Bayan, does not seem to
believe that Rockefellers waning will diminish the firmament.
There are plenty of new rich who share the same objectives and who
are determined to use their wealth to the same ends. The notorious
currency speculator George Soros, for example, has long portrayed
himself as a supporter of a global open society. Ted Turner, the founder
of CNN, is another in this league, who demonstrated his intentions
through his US$1 billion donation to the United Nations in 1997. Though
Turner's fortunes have waned, other plutocrats among them Bill Gates
and Warren Buffett, both intent on dispersing most of their fortunes
are waiting in the wings. The agenda of the Rockefellers and their
successors is hidden in plain sight. If we look past the veil of media-led
denial and ridicule, one does not have to look far to find it. Whether we just
watch it unfold is another matter.

Creating a European Union in North America

Bayan would seem to have the last word as to the relative impact of
Rockefellers removal from the world scene. As mentioned at the beginning of this
chapter, massive sociopolitical changes are under way in North America
exceeding in scope and immediacy perhaps even the expectations of a David
Rockefeller. The most startling is the undeniable effort under way to create a
region out of America, Canada and Mexico. Not only is this an astonishing idea
being pursued seriously and actively, its proponents are apparently some of the
most senior people in the current U.S. administration, as well as many experienced
former politicians and senior bureaucrats.
One observer of the ongoing effort to combine the three countries into one (by
2010, no less) is Phylis Schlafly, who wrote an initial article about the effort that found
its way into numerous alternative Net Web sites in late 2005. Schlafly is a civil

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conservative and her Web site, EagleForum.org, reflects this point of view. It was here that
she published her article, Plan to Integrate the U.S., Mexico and Canada, in July 2005. She
commented on the constitutionality of the plan as follows:
Sovereignty means the ability of a government to act without being
subject to the legal control of another country or international
organization, restrained only by moral principles. The United States
Constitution is based on the premise that we are a sovereign nation and we
dont obey any power unless authorized in the Constitution. The enemies
of sovereignty are working toward world government. Bill Clinton told
the United Nations that he wanted to put America into a web of treaties
to set the ground rules for the emerging international system.

Using Schlaflys research and articles by others who followed up on her initial
reporting, it is possible to come up with an informal timeline of how the idea of merging
America, Canada and Mexico into one super-region moved from an idea to an
agreement and then to active implementation.
It is interesting to trace the unfolding of this astonishingly bold concept for two
reasons. First, only the alternative Net media, including FMNN, has reported adequately
on the North American super-region plan. Second, it illustrates clearly what those in
and around the mainstream media are loath to admit that the visible elite not only
exists, it works in tandem with political leaders around the world to facilitate and
implement plans that are inevitably of a globalist nature.
While the case can easily be made for the activism of todays money power, the
connections between power-elite groups and actual, on-the-ground, structural changes
are more difficult to make, day-to-day. It is only when taking the long view that the focus
snaps into place and obviousness of the mechanism behind, say, the European Unions
ascent from trade agreement to super state becomes clear. So it is with the United States,
which began as a republic and is currently an increasingly federalized democracy.If the
North American union becomes a reality, the United States will not even be that it will
basically cease to exist.
Now there is nothing wrong with a country, any country, disappearing. Whats
wrong is for a former republic to do so without its citizens having any chance to be heard
on the subject while meaningful options still exist. Such an international merger as is
apparently being planned is not merely wrong because it is somehow unfair. It is
profoundly wrong because such a secretive evolution tears at the heart of civil society.
Starting with the Magna Carta in Britain, the West has engaged in a long, slow journey
away from the concentrated decision-making of tiny elites. Yet, lo, the process seems to
be repeating itself a thousand years later. And people notice. Protests grow; civil society

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is disrupted.
The drive to merge three separate countries, several languages and massively
disparate cultures and economies moves briskly along, as if conception and reality are
one. How is this possible? Examine the definition of conspiracy, according to
Answers.com: An agreement to perform together an illegal, wrongful, or subversive
act. It is also, A joining or acting together, as if by sinister design.
The Constitution is clearly based on the premise, as Schlafly puts it, that we
are a sovereign nation and we dont obey any power unless authorized in the
Constitution. A premeditated and secretive attempt to merge America with Canada
and Mexico constitutes an attempt to redefine the worlds most powerful nation-state
and a 250-year-old republic. As such it is an unlawful act in the broadest sense, no
matter whether the current status of the country (state of war, state of emergency, etc.)
putatively allows the executive office to proceed legallyor not. It is a conspiracy within
the definition of the word.
Timeline: North American Super-Region
The informal timeline, below, should make it fairly obvious to anyone without
bias that the construction of the North American Union is a concerted, premeditated
effort inside and outside of government.
1980: Ronald Reagan voices idea for North American Free Trade Agreement
(NAFTA) the concept of a free-trade agreement is mentioned by Ronald Reagan
during his presidential campaign. Wikipedia.com
December 1993: President Bill Clinton signs NAFTA into law NAFTA is a
free trade agreement among Canada, the United States, and Mexico. NAFTA went into
effect on January 1, 1994. NAFTA is also used to refer to the tripartite trading bloc of
North American countries. Wikipedia.com
2001: Robert Pastors 2001 book, Toward a North American Community,
calls for the creation of a North American Union Much of Pastors thinking
appears aimed at limiting the power and sovereignty of the United States as we enter
this new super-regional entity. Pastor has also called for the creation of a new currency
which he has coined the Amero, a currency that is proposed to replace the U.S. dollar,
the Canadian dollar, and the Mexican peso. The Plan to Replace the Dollar With the
'Amero' by Jerome R. Corsi, May 2006, HumanEventsOnline.com
April 2001: President George W. Bush signs Declaration of Quebec City
This is a commitment to hemispheric integration larded with favorite United
Nations doubletalk such as interdependent, greater economic integration, and
sustainable development. Plan to Integrate the U.S., Mexico and Canada, July 2005,
EagleForum.org

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January 2005: NAFTA railroad proceeds KCS takes control of The Texas
Mexican Railway Company and the U.S. portion of the International Bridge in Laredo,
Texas. Kansas City Southern, or KCS, has just completed putting together what is being
called The NAFTA Railroad.Coming soon to U.S.: Mexican customs office, Jerome R. Corsi,
June 2006, WorldNetDaily.com
March 2005: Kansas City signs cooperative pact with Michoacan, Mexico
According to SmartPort.com in March 2005, Kansas City signed a cooperative pact with
representatives from the Mexican state of Michoacan, where Lazaro Cardenas is located,
to increase the cargo volume between Lazaro Cardenas and Kansas City. The whole point
is to move cargo fast, using cheap, below union-wage scale Mexican workers to move the
containers from Asia into the heart of the USA. Coming soon to U.S.: Mexican customs
office, Jerome R. Corsi, June 2006, WorldNetDaily.com
March 2005: Agreement to build the Texas NAFTA Superhighway A
Comprehensive Development Agreement [is] signed by the Texas Department of
Transportation (TxDOT) to build the TTC-35 High Priority Corridor parallel to Interstate
35. The contracting party involved a limited partnership formed between Cintra
Concesiones de Infraestructuras de Transporte, S.A., a publically listed company
headquartered in Spain, owned by the Madrid-based Groupo Ferrovial, and a San
Antonio-based construction company, Zachry Construction Corp. Texas Segment of
NAFTA Super Highway Nears Construction, Jerome R. Corsi, June 2006,
HumanEventsOnline.com
March 2005: Security and Prosperity Partnership of North America
established (SSPNA) A joint statement by President Bush, President Fox, and Prime
Minister Martin. Security and Prosperity Partnership of North America (SPPNA) reads in
part: Over the past decade, our three nations have taken important steps to expand
economic opportunity for our people and to create the most vibrant and dynamic trade
relationship in the world. Our Partnership will accomplish these objectives through a
trilateral effort to increase the security, prosperity, and quality of life of our citizens.
The Partnership is trilateral in concept; while allowing any two countries to move
forward on an issue, it will create a path for the third to join later. North American
Leaders Unveil Security and Prosperity Partnership, USInfo.state.gov
March 2005: Dept of Commerce creates SSP to implement North American
Union the SSP was never ratified. Instead, the U.S. Department of Commerce merely
created a new division under the same title to implement working groups to advance a
North American Union working agenda in a wide range of areas, including:
manufactured goods, movement of goods, energy, environment, e-commerce, financial
services, business facilitation, food and agriculture, transportation, and health. SPP is
headed by three top cabinet level officers of each country. North American Union to

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Replace USA? Jerome R. Corsi, May 2006, Humaneventsonline.com

April 2005: KCS purchases controlling interests in Transportacion
Ferroviaria Mexicana KCS promptly renamed [it] Kansas City Southern de Mexico,
or KCSM. No stop is planned for customs inspection for KCSM trains until the
Mexican customs facility located at Kansas City. The only security check planned at the
U.S. border with Mexico is electronic, with the KCSM railroad moving along preapproved KCS rail lines. Coming Soon to U.S.: Mexican Customs Office, Jerome R. Corsi,
June 2006, WorldNetDaily.com
April 2005: Senate Bill 853 introduced by Senator Richard G. Lugar (IN) and
six cosponsors. The North American Security Cooperative Act (NASCA) is touted as a
bill to protect the American public from terrorists by creating the North American
Union. The North American Union consists of three countries, U.S., Canada, and Mexico,
with open borders, something that is proposed to be in effect by 2010. Thus, it would
ensure the fulfillment of the Security and Prosperity Partnership of North America.
NASCA Rips America, FMNN
May 2005: CFR Issues its Building a North American Community Report
The Task Forces central recommendation is establishment by 2010 of a North
American economic and security community, the boundaries of which would be
defined by a common external tariff and an outer security perimeter. Unlike previous
Council-sponsored Task Forces, this project was international, or trinational to be
precise. The membership was comprised of policy practitioners, scholars, and business
leaders from each of the three countries. The Task Force held meetings in Toronto, New
York, and Monterrey. In this effort, the Council partnered with two outstanding
institutions, the Canadian Council of Chief Executives and the Consejo Mexicano de
Asuntos Internacionales. From the Introduction by Richard N. Haass, President, Council
on Foreign Relations, www.CFR.org
June 2005: Follow-up SPP meeting was held in Ottawa, Canada U.S.
representative, Homeland Security Secretary Michael Chertoff, told a news conference
that we want to facilitate the flow of traffic across our borders. The White House issued
a statement that the Ottawa report represents an important first step in achieving the
goals of the Security and Prosperity Partnership. CFRs Plan to Integrate the U.S., Mexico
and Canada, July 2005, EagleForum.org
June 2005: Senate Republican Policy Committee policy paper released
The CFR did not mention the Central America Free Trade Agreement (CAFTA), but it is
obvious that it is part of the scheme. This was made clear by the Senate Republican
Policy Committee policy paper released in June 2005. It argued that Congress should
pass CAFTA The Senate Republican policy paper argued that CAFTA will promote
democratic governance. But there is nothing democratic about CAFTAs many pages of

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Artists rendition of the Texas Department of Transportation (TxDOT) proposed

NAFTA superhighway network. The 12-lane superhighway will run from Canada
to Central America.

grants of vague authority to foreign tribunals on which foreign judges can force us to
change our domestic laws to be no more burdensome than necessaryon foreign trade.
CFR's Plan to Integrate the U.S., Mexico and Canada, July 2005, EagleForum.org
July 2005: CAFTA [passes] the House of Representatives by a 217-215 vote
This vote, especially on the Republican side of the isle, does not reflect the views of the
American people or the U.S. Constitution. Even many Rush Limbaugh listeners have called
in to voice their strong opposition to this so-called free trade agreement. In fact, one poll
suggests that half of the countrys Republican voters opposed CAFTA!CAFTA Passes: Dirty
Tricks and Devastating Consequences, Scott Ritsema, Prisonplanet.com, August 2005
July 2005: Phylis Schafly writes about The CFR Plan to Integrate the U.S.,
Mexico and Canada The Council on Foreign Relations (CFR) has just let the cat out
of the bag about whats really behind our trade agreements and security partnerships
with the other North American countries. A 59-page CFR document spells out a five-year
plan for the establishment by 2010 of a North American economic and security
community with a common outer security perimeter. CFR's Plan to Integrate the U.S.,
Mexico and Canada, July 2005, EagleForum.org
June 2006: Mexican customs office to open with Kansas City SmartPort

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This will be the first foreign customs facility allowed to operate on U.S. soil. [The
customs office is part of a larger plan for a] NAFTA Super Corridor [that] calls for the
construction of a 12-lane highway (six lanes in each direction) along Interstate 35.
Coming soon to U.S.: Mexican customs office, June 2006, WorldNetDaily.com
June 21, 2006: Texas Segment of NAFTA Super Highway Nears Construction
The Trans-Texas Corridor (TTC) is ready to begin construction in 2007, building the
first segment of what is planned to be a NAFTA Super Highway stretching from Mexico
to Canada. Texas Segment of NAFTA Super Highway Nears Construction, Jerome R. Corsi,
June 2006, HumanEventsOnline.com
June 2006: Tom Tancredo, R-Colorado. Demands Superstate Accounting
from Administration Responding to a WorldNetDaily.com report, Tom Tancredo is
demanding the Bush administration fully disclose the activities of an office
implementing a trilateral agreement with Mexico and Canada that apparently could
lead to a North American union, despite having no authorization from Congress.
Tancredo Confronts 'Super-State' Effort, June 2006, WorldNetDaily.com
June 2007: Trans-Texas Corridor (TTC) Ready to Begin Construction
TTC will build the first segment of what is planned to be a NAFTA Super Highway.
Texas Segment of NAFTA Super Highway Nears Construction. Jerome R. Corsi,
HumanEventsOnline.com.
June 2008: Corridor to Use Existing Facilities After much controversy,
TxDOT, in charge of the Texas corridor, announced their recommendation that TTC69 focus on using existing facilities rather than building a new highway. ... The TransTexas corridor has been slowed but not stopped. CorridorNews.blogspot.com
China, Next America?
America has experienced more than a century of fiscal and monetary
mismanagement and fusion. The graduated income tax and federal reserve system
have hollowed out the countrys industrial base. Massive promotions and monetary
stimulation have drained dollars from its stock and bond markets. The country is
trillions in debt, at war and is now seemingly better known for its military exports than
its industrial ones.
Ironically, a country in much better shape than the United States is that
countrys main debt-holder, China. I have visited China several times. The country that
China reminds me of, peculiarly enough, is the United States not necessarily now, but
more than 150 years ago, during Americas great industrial revolution. It is that kind of
near-unrivaled growth that springs to mind when one travels throughout China today.
The trends that have conspired to throttle much of Americas manufacturing economy
over-taxation, over-regulation and a socialist mentality are surprisingly absent in

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China. That sounds almost oxymoronic in a country convulsed by Maos bloody,

collectivized great leap forward only a generation ago. But perhaps the Chinese have
learned from their mistakes, if not at the top among its aged leadership, then in Chinas
teeming streets and bustling malls where the most modern and exciting activity is seen
in the spending, getting and growing of ones wealth.
Taxes? The Chinese leadership does not even try to collect the countrys income
tax, leaving it up to individual business owners to raise it from their workers which
some do and some dont. Regulation? It may be coming, but in China nearly anything
goes, with pollution fogging the air of its busiest cities and its urban waterways offering
a patchwork of industrial debris.
Travel through China and youll actually find very few people who seem to
enjoy talking about the past, for understandable reasons, I suppose. Theyd much rather
focus on the future and on the prospects of getting rich as China pursues and expands
its very own industrial revolution, one that may be destined to drive all of Asia past
Europe and perhaps even past America as a discreet, regional powerhouse.
Literature on Chinas growth states that it was decentralization rather than
privatization that gave the current boom its start. Thus it was not the result of a party
decision but happened as a result of decentralization human action, in other words.
Once local governments gained control over their vast industrial centers, the
decentralization policy gave officials the power to reconfigure industries in their regions
and even create new companies with different industrial mandates. Importantly,
legislation gave local authorities the right to grant residual shares in the enterprises to
management. As competition became more intense, the local authorities began
granting more and more shares to the individuals involved in the enterprises until the
state lost control and the entity was effectively privatized.
There are powerful global financial trends at work that support increasing
Chinese economic vigor for years to come. One only has to look at the companies
flocking to China to see that our perception of the China Trend is shared by those in
positions of power within corporate America, and in Europe as well. China, India and
other developing nations are popular destinations for industry, just as America once was
and it can be quite profitable to follow the money trail.
Storm Warning
Further consolidation of U.S. federal power will finish off the remnants of
the American republic. The U.S. economic miracle was one that began pre-Civil War.
In fact, free-market proponents would argue that the current situation of these
United States have obscured the engine of prosperity that drove one country with
less than 5% of the worlds population to generate up to 50% of the worlds wealth,

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revenue, and medical and engineering inventions. Private individuals had access to
the markets and their human action added to the well-being of the populace and
the wealth of the community. The foundation for the entrepreneurial culture and
ongoing prosperity of the United States was generated (mostly) pre-Civil War days, so
this argument goes, and the ability of its citizens to participate freely in the
marketplace has been eroding ever since.
One may well ask if the many silk and cotton mills that adorned the rivers of
New England would have been built today given the concern of groups lobbying for the
environment and the radical solutions they often propose. The great explosion of
industrial might, developed in the 18th and 19th centuries probably wouldnt have
occurred given todays concerns with pollution and other industry-negative issues. The
more fusion that occurs, the more unitary power that the current administration is able
to command, the more difficulty the American experiment will undergo.
This is not to say that protecting the environment is of lesser value than
industrial growth. In fact, those who put it this way are using the thesis/antithesis
paradigm to confuse the issue. Free-market thinkers understand that market
competition is the best remedy for industrial pollution. Over time, consumers will
gravitate toward responsible corporate citizens versus those who receive a constant
drumbeat of negative publicity because of ongoing problems with pollution.
Government itself, by issuing rules and regulations and then attempting to enforce
them, cannot easily protect the environment. One of the most easily-grasped examples
of this economic fact would be in the area of poaching, and making it a crime to kill
certain animals for ivory or for their furs. In fact, anti-poaching laws only fuel the illegal
killing of animals. When other solutions have been tried, such as attempting to breed
more animals to provide the in-demand product, often the pressure on the species is
reduced because the profit incentive is regularized.
Speaking of the environment, it is ironic that the fuss raised when a large
corporation is involved in pollution is almost wholly absent as regards the vast
superhighway being built from Canada to Central America. Not only is this gigantic
transporation network what green types might call an environmental disaster in the
making, it is also a project that is rushing along at a fairly fast clip avoiding the kind
of scrutiny that one might ordinarily consider appropriate for a project of this size. A
project of this sort surely demands close examination, given the potential for economic
harm to Americas midwest from such a massive undertaking. It is well known among
civil engineers that throughout the 20th century, large transportation projects bisected
American cities and often turned thriving communities into dilapidated backwaters.
Perhaps the most egregious example of this kind of harm was perpetrated by
New Yorks master builderof the 20th century, Robert Moses, who split the Bronx in two

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Elite Retreat
For nearly 20 years, the United States has been the foremost cheerleader for a trading
regime that has shamelessly been promoted as free. [But] free trade, as currently
practiced, is a fraud. The regulatory agency that advances this transfer of power from
sovereign democracies to capital interests is the WTO, the World Trade Organization, which
should more appropriately be termed the Wealth Transfer Organization. Revolts against
these practices among the citizens of Latin America are on the rise. Ecuadorians rioted
against the practices imposed by the IMF, some 10-million Brazilians condemned the IMF
in a national referendum, and more recently, Bolivians overthrew their government rather
than knuckle under to the IMF-induced privatization of their nation's natural gas resources.
Leo W. Gerard, International President, United Steelworkers (USW),
representing 1.2 million members, USWA.org, May 2005

with a massive highway development. The Bronx never recovered from Moses violation.
Neighborhoods with boulevards as grand as any in Manhattan were transformed into
slums. The fabric of the borough and the logic of its development was ripped apart. Those
who plan enormous civil engineering projects were said to have learned from Moses
many disasters yet the superhighway project seems ready to repeat them on a titanic
scale. Such a superhighway, if fully realized, would no doubt do to the midwest what
Moses did to the Bronx turn a number of red states into economic backwaters. The
industrial action would be at either end of the highway, and the damage to the American
economy and national psyche would be immense, eventually, perhaps, transforming
the United States into two separate economic and industrial regions.
Economic Action Alert
Look for signs that the onrushing wave of U.S. federal power has crested and
is waning. The federal government redistributes more than $2 trillion in wealth from
taxes, and this does not take into account the redistributive impact of the Federal
Reserve. Inevitably, because of the economic law of marginal utility, government
spending is inefficient and tends to inject even more distortions into the economy.
Additionally, government takings fund regulatory endeavors and private
lobbying groups that would not otherwise exist. The effects are to be seen throughout the
industrially devastated communities of the American Midwest, and elsewhere too.

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How the Federal Reserve has wrecked America.

O N S L AU G H T O F T H E F E D
[Free-market economist] Murray Rothbard published America's Great
Depression, in which he presented a detailed interpretation of how Federal Reserve
monetary policy in the 1920s created the economic imbalances that resulted in the
economic downturn that started in 1929 [and became] the worst economic
contraction of the 20th century.
September 1999, FFF.org, Money,
Central Planning and the State
High Alert
This indescribably bad institution deserves a chapter unto itself. Certainly,
the Unites States was founded without a central bank for a reason. Jefferson and the
agrarian republicans despised them and were suspicious of bankers in general
and for good reason. Banking, as we have already noted, is an industry that exists
merely for the protection of those who wish to place real money gold and silver
in a reputable institution. The proactive measures bankers have taken with the
generation of fiat money and concurrent fractional banking especially through
central banking have brought wrack and ruin to society and plunged nationstates into continuous war, much as Jefferson warned.
In simplest terms, as we have seen, central banks including the Federal
Reserve inflate by printing money and offering credit that is then expanded by
other banks. The more money it prints, the cheaper money gets, and the less a
governments debt becomes. By cheapening money, the government deprives
individual citizens of part of the value of that money. As the value is eroded, citizens

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become poorer, even if they dont notice it right away. Inflation makes those closest
to the money printing facility the richest and the power elite is closest of all.
Being first in line to receive the benefits of fiat money, including credit power, is just
as rewarding as printing the money itself. Central banking also makes society more
malleable, more controllable via ongoing, massive booms and busts. The boom-bust
cycle created by overprinting of money is also known as the business cycle.
Alert free-market thinkers will be cognizant of where the economy resides
as regards the business cycle. Accurately identifying the right place gives the
individual investor insight into what kind of instruments might work best in the
near future as the cycle grinds along. No more than central banks can the business
cycle be ignored. And it is just as critical to understand the business cycle a
product of central banking inflation as it is to understand the mechanism of
central banking itself.
Mysterious Conclave
The Fed is actually the third American central bank. The first two failed, in
large part, thanks to agrarian populists and republicans such as Thomas Jefferson
and Andrew Jackson. All this changed early in the 20th century when, after
numerous tries, bankers and industrialists were able to create a central banking act
and have it passed by the U.S. Congress. Also, early in the 20th century, Congress
levied a graduated income tax, resulting in the formation of the IRS and the tax code
in all its complexity today. All large banks in the nation are members of the Federal
Reserve System. Nationally chartered banks are forced to join; state chartered banks
can choose. The system consists of 12 reserve banks, located throughout the country.


Co n s p i r at i
The Federal Reserve Board, a private corporation owned mainly by foreign
interests dominated by Germany, is dubiously blocking the crediting of $4.5
trillion of repatriated offshore funds that were transferred into the United States
in May and June 2006, in fulfillment of an agreement reached last year between
the U.S. authorities and the U.S. financial engineering genius, Leo Wanta, which
would transform the financial and economic outlook for the U.S. Treasury, the U.S.
economy, the American people, and the whole world.
July 2006, Rense.com

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These 12 reserve banks are supervised by the Board of Governors of the Federal
Reserve System, who are appointed by the president of the United States.
There was reason of course for all the secrecy that surrounded the birth of
the Fed. The governments control and the control therefore of those who control
the government of the banking system is most important within the structure of
the modern nation-state. In modern economics, the banks provide the most
effective engine of inflation.
Some people claim that the Federal Reserve System is a fully private
enterprise despite its quasi-public posture, and that the secretive power elite makes
loads of money from the Fed and other central banks. This cannot be easily
established and in any event is probably beside the point. To repeat: Inflation makes
those closest to the money printing/credit-offering facility wealthy and the power
elite is closest of all. Being first in line to receive the benefits of fiat money, including
credit power, is nearly as rewarding as printing the money itself.
Money Everywhere
As more and more money and credit are issued into the economy, the
money and credit already circulating is devalued. Those farthest away from the
money creation are the ones who suffer most those with the least access to
modern financial transactions the poor and middle class, in other words. Did this
suit the designs of the state money makers? Of course it did. A state with a central
bank is ultimately a kind of criminal enterprise and has placed itself in opposition to
its citizens. In any event, even before the advent of central banks, royalty existed in
uneasy accord with the mass of people whose wealth and labor were often
expropriated by force or at least for less compensation than they were worth. If the
state had developed an inscrutable money mechanism that drained wealth and
power from the citizens, then that was all too good, for these citizens would be too
busy scraping out a living to make trouble.
Additionally, the inflation that afflicted society, once central banks began to
issue major amounts of money for nothing, was a great opportunity to turn central
banks into centers of economic command and control. Of course central banks are
nothing of the sort. They are merely coercive mechanisms of brute force extracting
money far more efficiently than taxes ever could. But because the central bank
introduced a steady stream of inflation into the economy, the central bank could be
made to appear as an arbitrator of the nations monetary health. This is so even
today, when monetary functions have been extraordinarily centralized and royal
banks issue torrents of credit and money into an environment where money loses
value with disheartening regularity. Each pulse of monetary devaluation is

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monitored by the media and putatively by the central bank. Every upward tick of
prices is cause for concern. Print too much of anything and you get a glut. But only
in the world of central banking and money do the criminals come with white-collar
degrees and the ability to participate in the crime while posing as the law-and-order
sheriffs determined to crack down on the very fraud in which they are involved.
FMNN commentator and monetary architect of the silver Liberty Dollar
Bernard von NotHaus put central banking and inflation into context for Americans
with the following post: From 1913 [inception of the Federal Reserve] to 2001 the
national debt grew to $6 trillion in 88 years. In the next three years it climbed to $7
trillion dollars in 2004. In just one year it climbed sharply to over $8 trillion dollars.
The acceleration of the national debt is alarming. The corresponding loss of your
purchasing power may also accelerate in the near future.
As the economy sputters along, various commentators and politicians tell us
that the way out of this mess is to lower interest rates, increase spending, and,
consequently, take on more debt. In a post on FMNN entitled The Credit Delusion,
banking executive Christopher Mayer makes this point about how central banking
encourages the creation of retail debt, as follows: The purpose [of the central banking
mechanism] is to encourage debt, and indeed it has achieved the result. Debt as a
percentage of disposable income, for example, is as high as it has ever been, over
100%. As recently as 1990, debt represented 80+% of disposable income. In 1982, it
was in the 60% range. At the heart of such a scheme its sole logic is that debt
need not be repaid but postponed by increasing the debt of the debtor.
First American Central Bank
With so much on the negative side of the ledger, it is not surprising that the
idea of implementing a central bank in early America was a controversial topic.
Despite Jeffersons well-documented distrust of bankers and banking, the concept of
the central bank is intertwined with the history of the United States from inception
and not just the concept but the implementation as well. Nowhere is this more
visible than in Philadelphia, the nations capital for some time before the move to
Washington, D.C. Visitors to Philadelphia can see at close quarters the various
buildings that once housed the federal apparatus of the American experiment
including, nearly side-by-side, the buildings housing the nations first two central
banks. The first is actually a house, by all measures modest, white-painted and of
wood construction. The second, far grander in scope and ambition, is built of stone
and looks like a bank with an imposing faade and institutional landscaping.
In A Brief History of Central Banking in the United States, mainstream
financial economist Edward Flaherty summarizes the history of the nations first

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central banks as follows: The Bank was profitable, earning most of its income
through substantial loans to both government and private business. The chief
argument in favor of the Bank's renewal in 1811 was that its circulation of about $5
million in paper currency accounted for about 20% of the nations money supply. It
was the closest thing to a national currency that the U.S. had. Ironically, this may
have contributed to its downfall because the Banks issuance of notes came at the
expense of state banks. Foreign ownership, constitutional questions (the Supreme
Court had yet to address the issue), and a general suspicion of banking led to the
failure of the Banks charter to be renewed by Congress. The Bank, along with its
charter, died in 1811.
Americas Second Central Bank
The Second Bank of the United States was chartered in 1816 but its inception
and operation met with the fervent opposition of President Andrew Jackson, elected
in 1828, on something of an anti-bank platform. AmericanPresidency.org, sponsored
by the University of Virginias Miller Center of Public Affairs, offers the following
brief narrative concerning the Second Bank of the United States: A corporation
chartered by Congress to provide a national paper currency and manage the
governments finances. In United States history, the National Bank was a major
political issue during the presidency of Andrew Jackson [who] fought against the
bank as a symbol of greed and profit-mongering, antithetical to the democratic
ideals of the United States.
Elected as what we today might call a populist, Jackson felt antipathy to
Americas second central bank that actually deepened over the four-year time
period leading up to a congressional vote to recharter the bank. In his veto, Jackson
wrote, A bank of the United States is in many respects convenient for the
Government and for the people I sincerely regret that in the act before me I can
perceive none of those modifications of the bank charter which are necessary, in
my opinion, to make it compatible with justice, with sound policy, or with the
Constitution of our country.
Flaherty sums up the results as follows: The Second Bank of the United
States expired in 1836. The U.S. would be without an official central bank until 1913
when the Federal Reserve System was formed. Jackson believed that the nations
money supply should consist only of gold or silver coin minted by the Treasury and
any foreign coin the Congress chose to accept. Of course, free-market thinkers
would disagree with Jackson on this issue of the governments involvement in
minting gold and silver coins. Private mints are more than capable of handling the
necessary tasks.

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Modern Federal Reserve

For Flaherty and other mainstream observers of central banking, the
inevitability of an American central bank is nearly self-evident. Such narratives tend
to reveal mild surprise that the event did not occur much sooner in U.S. history
rather than that the final empowerment of such a bank occurred at all.
Flaherty sums up the impending creation of the American national bank as
follows: The movement for banking reform picked up steam among Wall Street
bankers, Republicans, and a few eastern Democrats [after the panic of 1907]. In 1910,
Senator Nelson Aldrich, Frank Vanderlip of National City (Citibank), Henry Davison of
Morgan Bank, and Paul Warburg of the Kuhn, Loeb Investment House met secretly at
Jekyll Island, a resort island off the coast of Georgia, to discuss and formulate banking
reform, including plans for a form of central banking. Because it was secret and
because it involved Wall Street, the Jekyll Island affair has always been a source of
conspiracy theories. . ... Everyone knew Wall Street wanted reform, and the Aldrich
Plan which the meeting produced was, in fact, rejected by the House.
Eventually a compromise was reached: What eventually emerged was the
Federal Reserve Act, also known at the time as the Currency Bill, or the Owen-Glass
Act. The bill called for a system of eight to twelve mostly autonomous regional
Reserve Banks that would be owned by commercial banks and whose actions would
be coordinated by a committee appointed by the President. The Federal Reserve
System would then become a privately owned banking system that was operated in
the public interest. Bankers would run the twelve Banks, but those Banks would be
supervised and by the Federal Reserve Board whose members included the Secretary
of the Treasury, the Comptroller of the Currency, and other officials appointed by
the President to represent public interests.
Flaherty Versus Griffin
In the above narrative of the inception of the Federal Reserve, Flaherty
alludes to the conspiracy theories to which the Wall Street meeting on Jekyll Island
gave rise. The conspiracy theorists overestimate the significance of the meeting, he
writes.
Opposed to Flaherty is FMNN commentator and Federal Reserve biographer
Edward Griffin. Griffin and Flaherty represent radically different perspectives on
central banking. Griffin avoided addressing Flahertys criticism of his Creature from
Jekyll Island for a fairly long period of time. But in 2004, he wrote a rebuttal,
beginning as follows: Edward Flaherty is a Ph.D. of Economics who has been critical

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R ea l i t y B y t e :
one of the most corrupt institutions ...
By a continuing process of inflation, government can confiscate, secretly and unobserved,
an important part of the wealth of their citizens.
John Maynard Keynes
Let me end my talk by abusing slightly my status as an official representative of the
Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression.
Youre right, we did it. Were very sorry. But thanks to you, we wont do it again.
Ben S. Bernanke, 2002-Nov-8, at a celebration
of Milton Friedmans 90th birthday
The Federal Reserve Banks are one of the most corrupt institutions the world has ever
seen. There is not a man within the sound of my voice who does not know that this Nation
is run by the International Bankers.
Congressman Louis T. McFadden
From now on depressions will be scientifically created.
Congressman Charles A. Lindbergh, Sr., 1913,
on the Federal Reserve Act
We are completely dependent on the commercial banks. Someone has to borrow every
dollar we have in circulation, cash or credit. If the banks create ample synthetic money we
are prosperous; if not we starve. We are absolutely without a permanent money system. It
is the most important subject intelligent persons can investigate and reflect upon. It is so
important that our present civilization may collapse unless it becomes widely understood
and the defects remedied very soon.
Robert H. Hamphill, Atlanta Federal Reserve Bank
Source: Quotes collected at www.Mega.nu/ampp


of my book, The Creature from Jekyll Island: A Second look at the Federal Reserve.
The essence of Flahertys critique is that anyone who opposes the Federal Reserve
must be some kind of a kook, totally lacking in scholarship. He lumps all Fed critics
together, those who bring scholarship to the topic as well as those who do not, and
the mixture tends to discredit everyone.
Griffin then answers Flahertys points at length. Rather than a summary, a

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portion, below, has been reproduced with Griffins permission.

Flaherty: All the conspiracy authors whose work I study here profess a
belief in the alleged New World Order conspiracy, or some variant thereof.
Griffins reply: An informed reader would not waste time beyond this
point. It is absurd to claim that a blueprint for a New World Order based on the
model of collectivism is merely alleged. The evidence that this is a demonstrable
fact of modern history abounds. Some of that evidence is presented in my work,
The Future Is Calling, found in the Issues Section of the Freedom-Force.org web
site.
Flaherty: Hypothesis: Each of the 12 Federal Reserve banks is a privately
owned corporation. Like any firm, their main objective is to maximize profits. They
do so by lending the government money and charging interest. They manipulate
monetary policy for their own gain, not for the public good. Facts: Yes, the Federal
Reserve banks are privately owned, but they are controlled by the publiclyappointed Board of Governors. The Federal Reserve banks merely execute the
monetary policy choices made by the Board.
Griffins reply: Basically, Flaherty is correct as far as he goes. But, as we shall
see in so many of his statements, he stops short of the entire truth. A half-truth is
just as much of a deception as an outright lie. Flaherty says that the Board of
Governors is politically appointed. This is true and it is supposed to make us feel safe
in the thought that the President responds to the will of the people and that he
selects only those who have the public interest at heart. The part of the story omitted
by Flaherty is that the President does not select these people from his own personal
address book, nor does he ask the public to submit nominations. With few
exceptions, he makes appointments from lists given to him by the staffs of banking
committees of Congress and from private sources that have been influential in his
election campaign. The most powerful of all these groups are the financial
institutions (including prominent members of the Fed itself) and the media
corporations over which they have effective control. One does not have to be a socalled conspiracy theorist to recognize the tremendous influence that these
institutions have over the outcome of presidential campaigns, and anyone with
knowledge of how our current political system works will understand why the
president makes exactly the appointments that the banks want him to make. All one
has to do to see the accuracy of this appraisal is to examine the backgrounds and
attitudes of the men who receive the appointments. While there is an occasional
token individual who appears to come from the consumer sector of society, the
majority are bankers deeply committed to the perpetuation of the system that
sustains them. Anyone who would seriously challenge the power of the banking

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cartel would never be appointed. So, while Flaherty is correct in what he says, the
implication of what he says (that the Fed is subject to control of the people through
the political process) is entirely false.
Flaherty: Nearly all the interest the Federal Reserve collects on government
bonds is rebated to the Treasury each year, so the government does not pay any net
interest to the Fed.
Griffins reply: Here is another half-truth that is a whopper deception. It is
true that most of the money paid by the government for interest on the national
debt is returned to the government. That is because the Feds charter requires any
interest payments in excess of the Feds actual operating expenses to be refunded.
However, before we jump to the conclusion that this is a wonderful benefit, we must
remember that the banking cartel is able to use tax dollars to pay 100% of its
operating expenses with few questions asked about the nature of those expenses.
After all of those expenses are paid, what is left over is rebated to the Treasury, as
Flaherty says. There is no secret about this, and you will find an explanation of it in
my book. Technically, there is no profit on this money. However, remember that
creating money for the government is only one of the functions of the Fed. The real
bonanza comes, not from money created out of nothing for the government, but
from money created out of nothing by the commercial banks for loans to the private
sector. Thats where the real action is. This is the famous slight-of-hand trick. Distract
attention with one hand while the coin is retrieved by the other. By focusing on the
supposed generosity of the Fed by returning unused interest to the Treasury, we are
supposed to overlook the much larger river of gold flowing into the member banks
in the form of interest on nothing as a result of consumer and commercial loans.
Flaherty: Hypothesis: Bankers and senators met in secret on Jekyll Island,
Georgia, in 1910 to design a central bank that would give New York City banks
control over the nations money supply. Facts: The meeting did take place, but plans
for a return to central banking were already widely known. Regardless, the proposal
that came out of the Jekyll Island meeting never passed Congress. The one that did,
the Federal Reserve Act, placed control over monetary policy with a public body, the
Federal Reserve Board, not with commercial banks.
Griffins reply: Here again we have a half-truth that functions as a
deception. Plans for a return to central banking, indeed, were already known, but
they were unpopular with the voters and large blocks of Congress. That was the very
problem that led to the great secrecy. Frank Vanderlip, one of the participants at the
Jekyll Island meeting, later confirmed that, if the public had known that the bankers
were the ones creating legislation to supposedly break the grip of the money trust,
the bill would never have been passed into law. The facts presented in my book, and

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E l i t e R e t r eat
Selected public-record exchanges (abridged) between Dr.
RON PAUL (R-Texas) and ALAN GREENSPAN, Federal Reserve
chairman, 2000-2005

2/17/2000 DIALOGUE ONE

The Fed has no way of knowing how much money the economy needs.
Dr. PAUL. My concern is what is going to happen when this bubble bursts? I think it will,
unless you can reassure me. But the one specific question I have is will M3 shrink? Is
that a goal of yours, to shrink M3, or is it only to withdraw some of that credit that you
injected through the noncrisis of Y2K?
Mr. GREENSPAN. Our problem is, we used M1 at one point as the proxy for money, and
it turned out to be very difficult as an indicator of any financial state. We then went to
M2 and had a similar problem. The difficulty is in defining what part of our liquidity
structure is truly money. Our measures of money have been inadequate and as a
consequence of that we have downgraded the use of the monetary aggregates for
monetary policy purposes.
Dr. PAUL. It is hard to manage something you cant define.
Mr. GREENSPAN. It is not possible to manage something you cannot define.

2/11/2004 DIALOGUE TWO

The Fed has inordinate power.
Dr. PAUL. Maybe there is too much power in the hands of those who control monetary
policy, the power to create the financial bubbles, the power to maybe bring the bubble
about, the power to change the value of the stock market within minutes? That to me

fully documented by references from original sources, show that my version is

historical fact. Flaherty attempts to minimize these facts by implying that the
original, secret meeting was not important because the first draft of the legislation
was rejected. What he does not say is that the second draft that was passed into law
was essentially the same as the first. The primary difference was that Senator
Aldrichs name was removed from the title of the bill and replaced by the names of
Carter Glass and Robert Owen. This was to remove the stigma of Aldrich as an icon
for big-business Republicans and replace it with the more popular image of

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is just an ominous power and challenges the whole concept of freedom and liberty and
sound money.
Dr. GREENSPAN. Congressman, as I have said to you before, the problem you are
alluding to is the conversion of a commodity standard to fiat money. We have
statutorily gone onto a fiat money standard, and as a consequence of that it is
inevitable that the authority, which is the producer of the money supply, will have
inordinate power.

7/21/2004 DIALOGUE THREE

Successful central banks must replicate gold standard.
Dr. PAUL. Yesterday's testimony was received in the press as you painting a pretty rosy
picture of the economy. So my question to you is, how unique do you think this
period of time is that we live in and the job that you have? Since there is no evidence
that fiat money works in the long run, is there any possibility that you would entertain
that, quote, we may have to address the subject of overall monetary policy not only
domestically but internationally in order to restore real growth.
Mr. GREENSPAN. Well, Congressman, you are raising the more fundamental
question as to being on a commodity standard or another standard. And this issue
has been debated, as you know as well as I, extensively for a significant period of
time. Once you decide that a commodity standard such as the gold standard is, for
whatever reasons, not acceptable in a society and you go to a fiat currency, then the
question is automatically, unless you have Government endeavoring to determine
the supply of the currency, it is very difficult to create what effectively the gold
standard did. I think you will find, as I have indicated to you before, that most
effective central banks in this fiat money period tend to be successful largely
because we tend to replicate that which would probably have occurred under a
commodity standard in general.

Democrats, defenders of the working man. It was a strategy advocated by Paul

Warburg, one of the participants at the Jekyll Island meeting. The fact that Flaherty
makes no mention of this suggests that he has not made an objective analysis but,
instead, has presented a biased critique in the guise of scholarship. His statement
that the Federal Reserve Act, placed control over monetary policy with a public
body, the Federal Reserve Board, not with commercial banks cannot be taken
seriously. The Federal Reserve is not a public body in any meaningful sense of the
phrase.

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Storm Warning
The demise of the dollar will give the Fed much about which to be
unhappy and its captains will do almost anything to avoid such a fate. Yet if
the Feds history is any indication, the dollars demise is an eventual certainty.
American investors will then choose among various other options to park dollars
and in the 2000s, money metals should be chief among them along, perhaps,
with overseas investments.
The only thing that can possibly delay the arrival of a full-force hurricane is
if China and America continue to play the money game. Take a walk through any
American airport and look objectively at the figures walking by. Then hop on a plane
and head to Beijing. From lots of personal experience in airports in both countries,
I can certainly tell you that the Chinese are hungry and theyve just started to get a
taste of what modern banking can yield.
Its a difficult battle to be fought, one that appears to be smoldering as I
write. I have very knowledgeable friends in Beijing and, after many late night
discussions, I believe it is safe to say that right about now, China, a nation that has
suffered through many paper money downfalls, is probably wondering how it can
slowly back out of this game.
China has tried to be a good corporate citizen. Needing to secure reliable
commodities access, Chinese corporations tried to acquire several different, worldclass commodity corporations, but permission was never granted, not in Canada
and not in the United States.
So whats the message? Something like this: Its OK to take U.S. dollars in
return for goods but real assets are off limits. The Chinese certainly understand this
by now, and that is why they have begun to concentrate on building relationships
with the South those countries that are impoverished now but that have the
natural resources that China can help develop or even purchase.
The West and the United States especially, has looked to the developing
world to help support its consumerism. But in the process, the industrial might of
the United States has been hollowed out. Today, the West, especially America, trades
increasingly worthless paper for the goods and services it imports. The low savings
rate and high credit volume of the United States function as a kind of call on the
future prosperity of America.
Economic Action Alert
Money metals and overseas equity investments are appropriate
considerations during a time of the U.S. dollars decay and possible destruction.
Seek investment opportunties that offer what might be called a teeter-totter

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approach publicly-traded mining companies with both base and precious

metals exposure. Such mining companies have the management experience to
generate successful projects domestically or abroad. And companies that possess a
broad portfolio of metals projects will do well if gold and silver continue to see price
advances. If economies worldwide confront ongoing shortages in raw materials and
commodities, then base metals may prove a lucrative play. With the right mining
companies, either eventuality is covered. However, it may prove more practical to
acquire a portfolio of base and precious metals companies that are specifically
focused on a chosen commodity.

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9
The Web versus money power.

E X PA N D I N G N E T
It is no ones fault that pernicious tales such as Peak Oil haunt public discourse
they would be far worse, and more immediately catastrophic were it not for the debunking
power of this wonderful mechanism of individual mass communication, [the Internet].
November 2005, FMNN
High Alert
This and the next chapter focus on the Internet and on those free-market
thinkers who are able to take advantage of the Nets promise most efficiently and use it
best. Just as the Net and free-market thinking provide tools for people to defend
themselves and their portfolios against the financial hurricane of the 2000s, so these
chapters explain how society itself may become inured to at least some of the more
serious manipulations performed by the visible power elite.
In addition to examining the workings of the Internet itself in more detail, this
chapter attempts to focus on why it has become such a challenge for the global power
elite. It also offers some ideas about the future of the Net as both a technology and an
informational tool. Without the control of communication and the ability to build a
virtually seamless wall of messaging,a good deal of the power elites promotional ability
is in jeopardy along with the time, energy and wealth invested in creating the initial
mechanism.
In the long run the power elite may have difficulty maintaining the integrity of
its ambitious promotional structure. This supposition is based on historic precedent:
During the era of the Gutenberg press, the Catholic Church with all of its physical assets

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on the ground and an army of committed servants, lost control of its message and
ultimately of many of the faithful. This is not to imply that the power elite will
necessarily succumb to a similar degree. But the Nets impressive debut would seem to
indicate modern money power faces increased difficulty on several fronts.
The mathematics alone must be worrisome. There are perhaps a few hundred
or a few thousand of the power elite, and billions who are not. As the Internet becomes
an evermore effective communications medium, the kinds of anti-promotional
explanations that this book espouses along with FMNN itself will become more
widely known and accepted among a certain small, but influential segment of the nonpower elite population. There is a name for this group, free-market thinkers, and they
will be discussed further in the next chapter.
Net as Change Maker
The Internet is a truly revolutionary technology, a change maker a device, in
aggregate, that people relate to with intimacy over a long period of time in much the
way they relate to television. The difference is that TV is a cool or passive medium while
the Net often demands at least some level of interaction. Additionally, depending on
how it is used, the Internet can be exceptionally informative, giving users a great deal of
detail along with a broad, factual overview.
Over time, Net users may become knowledgeable enough to counteract the
programming they received as children through the media and public schools. Of
course each revelation takes place personally, over weeks, months or even years. But the
'Nets power is such that it can set a hundred million or even a billion such conversations
going at the same time.
Certainly the Net has enemies, powerful ones. But if it is able to continue to
provide education and an increasingly truthful version of history, the power elites
promotional messaging will come under additional pressure. Once enough people have
reached conclusions that are fundamentally at odds with their initial programming,
society can undergo profound changes.
It is easy to fear for the Internet, but it is also quite possible to be optimistic. It
is so large at this point that any attempt by one or several groups to take it over with an
eye to controlling it or imposing Draconian censorship is bound to be resisted by
numerous other interest groups. These groups, primarily from the United States but
also from overseas, may well not agree with each other but will unite to stave off Net
challenges as best they can.
One reason for optimism is that there are already laws on the books that allow
the United States government, for instance, to regulate the Net at will and yet it has
not happened. The problem is that Net denizens are vocal creatures and have

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regularly bombarded Congress with e-mails and even shown up at hearings aimed at
muzzling or otherwise retarding communication on the Net. The amount of passion
the Net elicits is unheard of in this age of compact, hyper-useful technologies and
marks the Net as something different, more powerful, more complex than a mere
communications technology.
High Alert has compared the Net to TV, but in truth the Net is far bigger
than TV when it comes to its ultimate impact. It is bigger than radio, bigger than
telephones and faxes and even cell phones. The only comparable quasi-modern
invention might be the Gutenberg press. These are serious technologies invented to
present serious information. Movies, radio and television are commonly thought of
as entertainment technologies, but no one is expecting an on-line version of
Hollywood to spring up anytime soon. Nor will most people, in describing the
Internet, mention its entertainment value before other attributes.
Science Fiction?
From the late 1930s to the late 1960s, the economically printed paperback in
the United States where the genre was most popular offered tens of thousands
of alternative futures via science fiction. Almost all featured space travel of some sort
or, if not that, showcased various kinds of extrasensory powers that humans might
acquire and utilize.
A reader of historical science fiction might be struck by the absence of any
imaginary worlds that feature an Internet-like system. It is merely further proof of the
saying that truth is stranger than fiction and also, more importantly, proof of the
Misesian concept of human action. Someday, probably in the near future, if it has not
already been written, an FMNN or LewRockwell.com commentator will submit a post
noting how the inscrutable and mysterious human spirit has created a magnificent
worldwide information system of which no one, least of all the global bureaucracy, had
any inkling.
The United Nations may debate the Internet now, but those who make up that
august body were certainly not discussing the pros and cons of the Worldwide Net
with any urgency 25 years ago, or even 15 years ago when Bill Gates finally noticed it.
The U.S. Congress was just as late.
Perhaps the Net is destined to flame out. But it has many backers, and a
number of software-adept private users who will keenly monitor actions aimed at
narrowing the flow of information on the Net.
History of the Net
High Alert argues that government intervention at any level likely makes

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worse whatever problem is being attacked. But it has been pointed out that while users
of the Net often celebrate free markets, it took a government, the U.S. government, to
develop the Internet to begin with.
In fact, government in league with the private sector via Rand Corporation, did
provide the funding and organizational efforts that gave birth to the electronic network
that billions around the planet use today. In a June 2006 post at Mises.org, Government
Did Invent the Internet, But the Market Made It Glorious, economics professor Peter G.
Klein explains the history of the Internet from a free-market perspective.
Klein does not come out and say so, but one of the reasons that biggovernment types have probably not made more of the bureaucratic connection
between the Net and Uncle Sam than they have is because the Internet was actually
created in a fit of paranoia after the USSRs launch of Sputnik. The Rand Corporation and
the U.S. military both saw virtue in a decentralized, computer-supported
communications network that could send redundant packets of information
electronically thus rendering the system fairly impervious to military catastrophe.
The Internet was originally funded by the U.S. militarys Advanced Research
Projects Agency (ARPA), according to Klein. Four universities initially participated by
hosting nodes. By the early 1970s, that number had grown to nearly 50 and the Net
was already proving an efficient transmitter of what we would today call e-mails, as
well as scientific news and research reports. Klein compares the Net at this point to a
high-speed, federally subsidized, electronic post office. He explains its evolution this
way:
As parts of the ARPANET were declassified, commercial networks
began to be connected to it. Any type of computer using a particular
communications standard, or protocol, was capable of sending and
receiving information across the network. The design of these protocols
was contracted out to private universities such as Stanford and the
University of London, and was financed by a variety of federal agencies.
The major thoroughfares or trunk lines continued to be financed by the
Department of Defense. By the early 1980s, private use of the ARPAs
communications protocol what is now called TCP/IP far exceeded
military use. In 1984 the National Science Foundation assumed the
responsibility of building and maintaining the trunk lines or backbones.
(ARPANET formally expired in 1989; by that time hardly anybody noticed).
The NSFs Office of Advanced Computing financed the internets
infrastructure from 1984 until 1994, when the backbones were privatized.
In short, both the design and implementation of the internet
have relied almost exclusively on government dollars. The fact that its

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R ea l i t y B y t e :
R i p e T i m e f or G u t e n be r g s P r e s s
The development of printing in fifteenth century Germany succeeded because of a
number of complex and inter-related factors. Increased trade and prosperity, the
decline of feudal society, the Byzantine influence, the revival of learning in the
Renaissance and its resulting spread of literacy each played a part. The conditions were
right. The facilities and materials needed to convert the idea into physical form
existed. Paper, ink and press were available, as was the technology to create type. A
large, broadly based market insured that this new enterprise filled a social need. Thus
we see the effects of the spread of literacy on the development of printing were as
profound as the reverse and were, in fact, responsible for printing's success.
Terry Donovan, History of the Book at the School of Library and Information
Studies, University of Alberta in Edmonton, Alberta,
December 2002, revised March 2003


designers envisioned a packet-switching network has serious
implications for how the internet actually works. For example, packet
switching is a great technology for file transfers, email, and web
browsing but not so good for real-time applications like video
and audio feeds, and, to a lesser extent, server-based applications
like webmail, Google Earth, SAP, PeopleSoft, and Google
Spreadsheet.
Furthermore, without any mechanism for pricing individual
packets, the network is overused, like any public good. Every packet is
assigned an equal priority. A packet containing a surgeon's diagnosis
of an emergency medical procedure has exactly the same chance of
getting through as a packet containing part of Coldplays latest single
or an online gamer's instruction to smite his foe. Because the
senders marginal cost of each transmission is effectively zero, the
network is overused, and often congested. We must be very careful
not to describe the internet as a private technology, a spontaneous
order, or a shining example of capitalistic ingenuity. It is none of
these. Of course, almost all of the internet's current applications
unforeseen by its original designers have been developed in the
private sector.

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Klein lists Xerox and Apple as contributors to the Nets current usability via a
graphical user interface (GUI), and the invention of the mouse and Ethernet protocol.
He also points out that we do not know what an electronic messaging system might
look like had the government not become involved initially. What kind of global
computer network would the market have selected? We can only guess. Maybe it would
be more like the commercial online networks such as Comcast or MSN, or the private
bulletin boards of the 1980s. Most likely, it would use some kind of pricing schedule,
where different charges would be assessed for different types of transmissions.
Kleins conclusion? It is only thanks to market participants that the Internet
became something other than a typical government program: inefficient, overcapitalized, and not directed toward socially useful purposes.
An Unexpected Boon?
It is obvious from the above, brief historical synopsis, which differs from others
only in its focus on the free market, that the current state of the Internet was not
something its original participants expected. Military programs, after all, are developed
for the military. Government can lose control if commercial entities intrude too
aggressively. In fact, this is exactly what did happen.
The Internet has succeeded brilliantly at performing its communications
function. Yet it is probably also safe to say that the better it performs, the more upsetting
it is to the established order. From the military and power elites points of view, one might
perhaps compare the Internet to Frankensteins monster, birthed with a particular
purpose but soon running out of control. The Internet is such an effective purveyor of
knowledge because it is a solitary communications medium that invites leisurely
research; viewers can choose what they like and examine the information for so long as
they wish.
The idea that the Internet is only around because the government made it is
debunked, above, in Kleins article. Certainly, once the technology was available, the
private sector would have figured out a way to build something along the lines of the
Net. Quite likely it would have been a lot more efficient since it would have had pricepoints built in to give market feedback as to what were popular features and whether
they were cost effective.
In any event, a quick glance at Google shows that radio, TV, even computers,
were either invented or given great boosts by 20th century Western governments,
usually the American government and the military. Given the size and breadth of
government, it is probably impossible to conceive today that any significant
communications medium past a certain point would not come to the attention of
those in the military who would then want a hand in bringing the latest cutting edge
technology to fruition. As Klein points out, the test of the usefulness of a technology is

< 173 >

not where it gets its start but whether the private market eventually finds it useful and
commercially viable.
In the case of the Internet, the markets answer was a resounding yes, yes,
yes. The Nets functionality grew quickly in the 1970s and 1980s and virtually
exploded in the 1990s. Today, the functionality and usership continue to grow rapidly
apparently at an accelerating rate. Its penetration among major Western
companies, which depend on the Net for some level of business success or branding,
must be near 100% at this point.
It is possible, over time, that Western governments, especially the United
States, can grant franchises to certain companies that effectively provide pricefixing via political patronage, etc. This would certainly introduce greater
inefficiencies and wait-times for certain services. But inefficiencies or not, one of
the main qualities of the Net, perhaps its most subversive aspect, is the truthful
information it provides (to those who seek it). This will not change, at least in the
West, unless the Internet is radically reconfigured and controlled to the point that
it would probably stop being of great use commercially. And that itself would be a
difficult administrative sell.
For reporters, the Internet has already proven a great boon. It confirms
intuition about specific subjects by yielding up various nomenclatures that are
trackable. Certain controlling elements of modern money power may be easily
followed via foundations, donations, endowments, fellowships and other kinds of
money trails. It is in the area of such linkages that the Internet has given rise to
some of the most original reporting at sites such as FMNN. In fact, a convergence of
machine, resoluteness and vanity has created a kind of perfect stew of reportorial
nutrition based on what can be absorbed with patient research.
The power elite has created its own problems with supreme confidence,
arrogance, actually. Over and over the same names are revealed behind the most
obvious regulatory initiatives. One example: Big Oil funds environmental groups
that lobby against drilling in the domestic United States thus making more
profitable overseas extraction and importing a necessity. Once it sinks in and
eventually it will that the environmental movement has, in large part, been set
up and promoted by those in traditional power industry venues to raise prices and
barriers to entry of competitors, public anger will drain the movement of its more
poisonous and extreme elements, leaving behind perhaps a rational discussion of
costs and benefits.
Paranoia is likely rising in high places, as the realization that decades of vanity
names appearing on this trust or that charity have left an obvious web of
connected interests. Recently, U.S. Vice President Richard Cheney announced that the

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names of his staff were classified and would not be released to the general public. It was
an announcement that caused much amazement as such a decision had never been
taken before. Perhaps it was concerns over terrorism and the ability of terrorists to target
the nations best and brightest serving in Washington, D.C. But just as likely it was, at least
in part, the beginning of a calculated campaign to reduce the availability of data to those
who wish to research the interlocking backgrounds of the political elite.
This effort is likely doomed to failure. History does show clearly that new
technologies need to be contained on their own terms. Simply withholding information
from a force so powerful as the Internet is a stopgap measure at best. The Internet and
its alternative press will probably not be contained this way.
One such example of the Nets ability to out-report mainstream media is, of

R ea l i t y B y t e : I n t e r n e t S na p s ho t
As of Summer 2006 (numbers continue

to grow)

United States
152 million U.S. Internet users
80 million blogs (not one blog per person, though)
77% of Americans are now online, up from 57% back in 2000
52% of U.S. women are Web users
79% of urban U.S. residents were online in a single day
55% of suburban U.S. Internet users are online several times a day
30% of U.S. Internet users go online without any specific reasons
52% of U.S. Internet users (76 million) surf for fun vs. November 2004 @25 million
38% of U.S. Internet users use a search engine daily

Wo r ld
110 million Internet users in China (China is 2nd-largest Internet market after U.S.)
60 million Chinese blogs est. by year-end 2006
14% of worlds population, 694 million Internet users worldwide, age 15+
31.3 monthly online hours worldwide average
57.5 hours online spent by Israeli Net users most in world per month
26 hours online by Americans per month
17 billion devices to connect to the Internet in 2012
400 million broadband subscriptions worldwide by 2010
Sources: comScore, Nielsen/NetRatings,Harris Interactive, Baidu.com(China), Pew Internet & American Life
Project


< 175 >

course, the Dan Rather story. At FMNN, we were on top of the story,reporting how alert
Internet bloggers skewered Rather when he claimed to have documents exposing
President George W. Bush as a malingerer during his career in the National Guard. Rather
maintained the documents were real, long after myriad Net bloggers had proven them
fairly obvious forgeries. The more Rather stonewalled the worse it got until the
obviousness of the fraud became evident to all. Eventually, Rather issued an on-air
apology and not much later announced his retirement, from his evening news show.
The Internet, with its built-in cast of millions of citizen reporters has no built-in
censor; thus, fewer and fewer Rathers will be able to get away with wholesale
falsifications. If a story is important within the cultural context of the time, it will be
covered via Internet radio, TV and, of course in various posts, blogs and e-mail alerts.
The pressure builds and builds as this process takes place, until the mainstream press,
too, must provide an interpretation, or look as if it is actively hiding something. So it was
with the Rather story, as one of the worlds most important and polarizing media stars
was gradually pushed off stage, scoffing at first and even bellicose, then pathetic and
finally, momentarily, resigned to the unfairness of it all.
9/11 Questions
Another example of the result of media pressure, and the sudden result it can
yield, was provided by a March 06 New York Magazine article. As might have been
expected, the coverage came of the 9/11 attacks from the point of view of conspiracy
theory. However, it mentioned the major role the Internet played and appeared,
interestingly enough, several months after a 9/11 article in the Village Voice dealing, even
more reluctantly, with the same content. The New York Magazine article was afforded
major play; it was, in fact, a lengthy feature teased on the cover.
Google 9/11 conspiracy and the bytes bury you. The first great
conspiracy theory of the Internet Ageimagine JFK assassinationology
with the Web!9/11 Truth is a fast-moving meme. The thicket of truth
sites is myriad. It can be argued that a whole new kind of politics is
being waged in the 9/11 Truth assault. This is not a movement that
takes its Nagra tape recorders to document Dealey Plaza acoustics to
ascertain which bullet came from what angle. When 9/11 Truth
researcherscite the physical evidence,they usually mean the referred
reality of photographs or videos posted on the Net. Paul Thompson,
whose 9/11 timeline has become the undisputed gold standard of Truth
research, does all his work on the Net. I dont have to be any particular
place to do this, says Thompson, who for a while moved to New Zealand
so it would be easier for him to concentrate.

< 176 >

Taken in its totality, the article is not one that might have been printed were it
not for the pressures of the Internet. We are not speaking here of a quarter-century reexamination, or even a decades retrospective. The grief of the victims families is still
raw. It is as if Life Magazine devoted much of an issue, only a few years after Kennedys
death, to detailing the ways that many bright, verbal, studious individuals had come to
conclusions vastly different than those of the Warren Commission.
Reformation Repeated?
Combine the information on the 'Net with a way of gaining access to it, such as
the one provided by Google or Yahoo, and you have a communication technology of
incredible power. It is one that makes the pre-Internet information and article databases
of a decade or two ago (to which it costs easily $10,000-$100,000 to subscribe per
annum) look laughingly primitive. Right now historys great conversation can be read
and heard and seen on the Internet taking place in your own home. Visit
LeMetropoleCafe.com or any of the other great sites out there that are helping people
to see just what has been happening, and youll find many of the same perspectives as
those represented in this book.
The battles mentioned above are really variations on a theme. In one of his
Uncle Eric books entitled, Ancient Rome, How It Affects You Today, FMNN
commentator Richard Maybury explains how so-called Roman law is really the use of
state power to enforce whatever regulations the ruling elite decides is necessary.
At its height, the Roman Empires judicial systems had thousands of laws
regulating all parts of citizens life and work. Yet before the Roman civilization was an
empire, it was a republic observing common law that evolved over the millennia from
social and cultural interactions.
Rome was ruined by the governance that had once made it great. Its coin was
debauched, its taxes were onerous and commerce was rendered impossible by legalized
fraud. Eventually, Roman citizens were not willing to support their empire. The armies
that protected Roman borders gradually ceased to be paid and the various tribes looking
to exploit Roman weakness poured across the borders and began a 200-year-long spree
of looting, raping and destruction of anything Roman. So total was the devastation that
even today little is left of the empires enormous, mechanized civilization or the many
magnificent buildings spread across its densely populated urban areas.
There are obvious parallels between what is going on in the West today and
what took place in Rome. But these parallels have been made for a number of years.
What has changed brought them so overwhelmingly to the publics attention is

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R ea l i t y B y t e :
S om e of t h e A lt e r nat i v e N e t P r e s s
Kitco
Le Metropole Cafe
Lew Rockwell
Liberty For All
Mises Institute
Newsmax
Plug Nickel Times
Prison Planet
Propaganda Matrix
Rational Review
Reason Magazine
Rense
Straits Times
Strike The Root
The Independent Institute
The Last Ditch
The Memory Hole
Truthout
Truth About War
VDARE
What Really Happened
World Net Daily

American Conservative
Ananova
Anti-State.com
Antiwar.com
Asia Times
Bruges Group
Build Freedom
Capitol Hill Blue
CounterPunch
Democratic Underground
Drudge Report
eLibertarian
Financial Sense Online
Free Market News Network (FMNN)
Freedom News Daily
Free Republic
Freedom's Phoenix
Future of Freedom Foundation
Gold-Eagle
Huffington Post
Information Clearing House
Jewish World Review


increasingly functional and convenient technology. Not only is the Internet adding to
viewers knowledge and regularly changing opinions, it is making inroads against
mainstream media that are increasingly being acknowledged by the media itself.
In a wide-ranging special report in April 2006, the Economist magazine
caught up to the rest of us by comparing the Internet to the Gutenberg press in terms
of its impact. The survey included a number of other powerful descriptions of the
Internets impact. The obvious benefit of this media revolution will be a Cambrian
explosion of creativity: a flowering of expressive diversity on the scale of the
eponymous proliferation of biological species 53 million years ago. We are entering an
age of cultural richness and abundant choice that weve never seen before in history.

< 178 >

The magazine all-but-declared the newspaper dead (by 2040) and somewhat
surprisingly found room to quote a media mogul its topmost authorities usually
pretend to despise Rupert Murdoch, chairman of News Corporation.
Murdoch, as the Economist pointed out, told the American Society of
Newspaper Editors last year that as an [newspaper] industry, many of us have been
remarkably, unaccountably, complacent. [The young] dont want to rely on a god-like
figure from above to tell them whats important. And to carry the religion analogy a bit
further, they certainly dont want news presented as gospel. Not much later, Murdoch
went on a $3 billion buying spree, purchasing MySpace.com among other Internet sites.
Scarcity Versus Plethora
What the Economist Missed
FMNN commentators, including myself, have been writing on the similarities
between the Gutenberg press and the Internet for years now. Thus, it was somewhat
surprising that so much of the Economist survey dealt with blogs and participative
media. Most media moguls are after news delivery systems radio, TV, newsprint. Its
news that delivers credibility and power. Many come to FMNN for what they consider
to be a truthful or honest take on whats going on one that is not filtered through
the mainstream media. Actually, Murdoch is wrong. They dont want to participate.
They want information they can trust and in turn they trust sources such as FMNN
more than mainstream news or information channels.
Only a decade ago, The New York Times set the standard for interpreting and
reporting news, and the nations TV stations, radio networks and even other newspapers
and weekly magazines fell in line. Today, hardly a trace of this sort of homogeneity exists
in the United States, for many of the industrys younger reporters have gone on-line
and the Internet is increasingly filled with those who were formerly part of the
mainstream news media but now have little or no contact with it. It is probably safe to
say that these writers acknowledge no allegiance to the Times (why should they?) and
have no intention of letting it or any other media company dictate what is and isnt
allowable coverage.
Information Plenty
The 20th-century mainstream media was created on a model of information
scarcity. While it seems odd today, given the amount and variety of news dissemination
channels in the 20th century, the actual news content available to the average consumer
was fairly limited, even 10 years ago. Thats not the case anymore, and it is the reason
that mainstream media is having trouble keeping up. Mainstream players simply arent
equipped to cover news the way the Internet covers it.

< 179 >

The idea of media plethorais not just a theoretical point. With little in the way
of regulation or self-censorship to consider, Internet reporters and bloggers have
contributed to the increasing difficulties that those Western institutions, controlled by
the power elite, seem to be having with business as usual.
United Nations: an ongoing oil-for-food scandal.
European Union: a long-awaited constitution fails to pass.
FEMA: exposed as incompetent in confronting the New Orleans hurricane
tragedy.
IRS: loses closely-watched tax-cases, may have declined to prosecute others.
Central American Free-Trade Agreement: passes in Congress by the
narrowest of margins.
DOHA international trade talks: foundering as of this writing.
The model of information scarcity is dead, but it still permeates almost every
part of the mainstream media and colors every decision including the way news and
information is presented. In order to create this scarcity, the biggest media giants have
had to make their peace with a variety of regulatory authorities setting limits on
coverage.
Murdochs empire cost billions of dollars to build. FMNN, which now reaches
millions of viewers a year, was up and running for an outlay that Murdoch would
consider petty cash. Yet Murdoch has no serious news presence on the Web or not one
that builds on his mainstream information business. He has transplanted what he has,
with difficulty, but he has not been able to build anything new.
The space that is growing fastest on the Net, the space that Murdoch would fill
if he could but he cannot is the one that FMNN (and others similar to FMNN) has
entered and begun to dominate the free-market space. This offers a profound
alternative to mainstream media. As the Internets unique characteristics are continually
expanded and deepened, the differences between the Nets capabilities and that of
mainstream media will become more pronounced.
Storm Warning
Competition for control of the Internet intensifies. From a competition
standpoint, the Internet is winning the battle for the eyes, ears and minds of viewers.
Newspapers recently reported an aggregate 3% drop in circulation for the trailing six
months. With no way of reversing the lagging readership, newspapers are bound to
lose a good portion of their regular advertising and an even larger portion of their
classified advertising to Internet sites. Once that happens, the collapse of the oncegreat newspaper industry is all but assured and the collapse is sure to affect the

< 180 >

broader stock market as well.

Modern money power has already experienced one unexpected information
revolution which seemingly destroyed its grip on Europe. Imagine the discomfort of the
power elite as its members eye the Internet. What will be tried? What hasnt been,
already with mostly limited success. The Internet is damned as a hotbed of child
pornography, of financial terrorism, of frauds and scams that can hardly be believed.
But just as with the Gutenberg press, people recognize a good thing and are not about
to be easily swayed. The Internet their Internet is not a thing of terrorism or evil.
This is at the heart of the power elites dysfunction. It is a dysfunction just as powerful
as the one that short-circuited the Roman Catholic Church when it confronted
Gutenbergs press and briefly demanded to license every book printed on the new
technology. The technology has outstripped the resources of the power elites control,
and it may take a good number of years to develop a countervailing technology and
strategy.
The Net marks a profound boundary between what may well become known
as the Age of Promotionand what comes next. Once the mechanism is illuminated,
it will be as difficult to continue it as coin-shaving or sneakilymixing base metals with
precious ones prior to releasing a coin.
Many a battle will occur between now and then. There are those among the
global power elite who are no doubt convinced of their ability to rule and believe their
own justifications. They will crank up their printing presses, flood the world with paper
money and drown out dissent on the airwaves with paid media hacks. But they will not
be able to snuff out the Internet any more than the Catholic Church could snuff out the
widening river of printed Bibles undermining the foundations of the Roman Catholic
Churchs credibility page by page and word by word until Luther nailed his thesis to
the door and the Reformation began.
Economic Action Alert
Watch out for a media-induced collapse of the stock market and for an
increased level of Internet-oriented investment opportunities. Net-based news
networks possessing a strategy designed to leverage large and growing niche markets
may offer exceptional investment potential.
Ironically, any radical transformations of the Nets ability to freely transmit
truthful information among users will be noted on the Internet itself, probably long
before reports appear elsewhere. Realize, if you are reading this book and taking
advantage of the opportunities offered by the Net, that you must take personal
responsibility for what it has to offer. Thomas Jefferson spoke of the price of liberty
being eternal vigilance. This is no less true when it comes to monitoring the freedom

< 181 >


Elite Retreat
Rupert Murdoch has forecast a gloomy future for newspapers with the growth of the
Internet, saying he doesnt know anybody under the age of 30 who has ever looked at
a classified ad. The owner of the Sun, Times, Sunday Times and the News of the World,
who once described newspaper classified advertising revenue as providing rivers of
gold, now says: Sometimes rivers dry up. Certainly I dont know anybody under 30
who has ever looked at a classified advertisement in a newspaper. With broadband they
do more and more transactions online. But Mr Murdoch denies he has been forced
into panic buying internet companies because of falling ad revenues. At a conference
last month, the WPP group chief executive, Sir Martin Sorrell, accused Mr Murdoch of
buying web operations willy nilly.
Media.Guardian.co.uk, November, 2005

of electronic communication. It is not enough to hypothesize about the Net. If you are
speaking to these topics, or reading or writing about them, then you are certainly able to
move beyond the merely speculative. Build alliances with others who think as you do.
Take advantage of the great resources the Net offers. Agitate when necessary, but do not
confuse sincere privatization efforts with government-initiated legal protections. The
former privatization of the Internet is to be devoutly wished for. Legitimate
privatization (of the parts of the Net that are currently run with public money and
administered by third-party stakeholders) will rationalize the Nets pricing mechanism
and provide markets via price points for innovative minds.
It cannot be denied that much is wrong with the Net despite all of its
successes. Those who look toward government to protect the Net as it is, and to enforce
the status quo, are ultimately doing themselves and the alternative electronic Net
community a disservice. The Net is a dynamic communications super-system that is
constantly changing, and every effort should be made to enhance electronic property
rights on and around it. Help to ensure the Nets immunity from power-elite initiated
political agendas and the ruination that can result from biased legislation. Remember
that if government has or gains the power to pass substantive laws aimed at
protecting the Net, then government and those behind government are in the
position to pass other, less favorable laws.

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10

How the Internet is adding to the worlds free-market thinkers.

COU NTERCU RRENTS & TWO PERCENTERS

In reporting on President Bushs announcement that he would suspend fuel
deposits into the Strategic Petroleum Reserve in an effort to reduce rising gasoline
prices, numerous news outlets failed to note that Bush had previously criticized both
the Clinton administration and Senator John Kerry (D-MA) for proposing to use the
reserve to lower prices.
April 2006, MediaMatters.org, News Outlets Ignored Bush Flip-Flop
High Alert
Two percenters, according to psychologist Abraham Maslow, are capable of
fully entering the adult world through self actualization thus giving themselves
a chance to live up to their potential. The Internet is aiding in the creation of
additional two percenters every day some of whom are what High Alert refers to
as free-market thinkers. These individuals, while as aware of the way the world
really works as other two percenters, may have little acceptance of the
transformative power of government initiatives and a surprising sophistication
when it comes to how market forces operate.
This chapter also brings together actual details about free-market thinking
with a brief presentation of the history of free-market economics including the most
important laws, marginal utility and Says law. You will also find a presentation of the
business cycle and what are the best investments within a given part of the cycle. I
suggest that the best combination of investment strategies consists of businesscycle asset allocation, combined with a sense of how modern money power readies
its assets for investing. Also, the places or regions that have been identified as targets

< 183 >

for potentially massive financial promotions. Two percenters free-market

thinkers will use portions of these strategies to determine for themselves how to
best protect and expand their portfolios.
While High Alert suggests that only two percent of the population is
inherently capable of absorbing the full spectrum of power elite activities and
then acting on that information, this number is offered not with a presumption of
superiority but with concern, even dismay. It is to be hoped that books like High
Alert and many to come as the Internet stimulates a flood of additional
information will help raise 2% to three, four, five or even more. Not only will
additional people be putting themselves into a better position financially, but as the
percentage rises, the ease with which global economic manipulations are effected
will gradually diminish. Real change takes place as numbers grow.
Changing Definitions
What makes a two percenter? Maslow the American psychologist who
built a career on the insight that people had certain needs to satisfy, usually in a
certain order believed that such individuals were not common. His hierarchy of
needs was simple but not many could reach the top. Maslow spent his entire career
refining his ideas and creating further rhetorical flourishes. But the basic insight
remains: If you are chasing sexual experiences or popularity past a certain age, you
are probably not going to be able to take your mature intelligence and life
experience and apply it as effectively as someone who has resolved these life issues
earlier.
Maslow never believed it was easy to achieve ones full potential (hence the
term two percenters), because certain needs must be satisfied in a particular order
or the individual will remain stuck, unable to proceed. While he came up with
several different models, his most popular Hierarchy of Needs was published in
Motivation and Personality in 1954.
1) Physiological: Need of life-sustaining items food, water, shelter, etc.
2) Safety: Need of stability and consistency.
3) Love and belongingness: Need of family, friends, stable workplace.
4) Self-esteem: Need of personal and professional recognition.
5) Self-actualization: Need to realize ones full potential.
For Maslow, people such as Albert Einstein were two percenters, because
they had the ability to tap internal resources that led to remarkable accomplishments. But Einstein was also mean to women (especially his wives), selfish,
disorganized and cruel. As with many two percenters of the mid-20th century,

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Co n s p i r at i
Socialism is the political system the Black Order uses to enslave the people on Earth.
The red banner is the private symbol of their biggest sponsors the Rothschilds
and is actually their family-banner. You can see the red banner swaying from the
top of their big mansion. This family has since the 1700s worked on bringing about
socialism. Few people know that many of the European Banks were founded by
the Rothschild's and owned by them. Central banks is a basic thesis for socialism.
IlluminatiNews.com

Einstein had little to say about the sociopolitical and economic structure of the West
and the United States in particular, though he did abhor Germany under Hitler
and helped America, according to his lights, with the creation of the atomic bomb.
What becomes obvious in studying the life of someone such as Einstein is
that being a two percenter as Maslow envisioned it does not necessarily give
individuals deep knowledge in areas beyond their specific disciplines. Einsteins
gaze was turned outward toward the physical universe on a microcosmic scale. But
he does not seem to understand the motivating factors behind the great and
sorrowful events that were taking place right under his nose. Others did, however.
The great poet and war criminal Ezra Pound understood what was going on a
good deal, some would say, as did the young man he mentored, Eustace Mullins
(whose monetary histories are explosive, to say the least).
Todays two percenters,
Todays two percenters, I would like to think, are far more aware of the world
around them and how it is changing. I have also referred to this class of the two
percenter as the free-market thinker those who are viewing a good deal of
original information on the Net and coming to the conclusion that there is no
panacea for social issues save letting the private sector work as it ought to. These
people see that free-market economic laws of supply and demand will impose
themselves anyway, and that attempts to circumvent natural law only end up
distorting the marketplace and causing misery, scarcity and other unforeseen
consequences.
Over the next five or 10 years we may well see and hear from numerous
free-market thinkers educated by information on the Net who will fulfill
Maslows two percenter criteria as delineated previously, but who will be
passionate about sociopolitical and economic change. These charismatic and savvy

< 185 >

individuals will have insights into society and what is going to happen next that is
unlike generations that went before. So much information, so freely available, will
produce remarkable individuals who may make real change. This may not, of
course, please the power elite.
Powerful truths are prone to restatement. We have already re-stated
Maslows hierarchy from a free-market point of view. But to refine it further, let us
consider Ludwig von Misess great insight regarding human action, as follows,
from Human Action, Part 1, Chapter IV, A First Analysis of the Category of Action:
The result sought by an action is called its end, goal, or aim. One
uses these terms in ordinary speech also to signify intermediate ends,
goals, or aims; these are points which acting man wants to attain only
because he believes that he will reach his ultimate end, goal, or aim in
passing beyond them. Strictly speaking the end, goal, or aim of any
action is always the relief from a felt uneasiness.
A means is what serves to the attainment of any end, goal, or aim.
Means are not in the given universe; in this universe there exist only
things. A thing becomes a means when human reason plans to employ
it for the attainment of some end and human action really employs it
for this purpose. Thinking man sees the serviceableness of things, i.e.,
their ability to minister to his ends, and acting man makes them
means. It is of primary importance to realize that parts of the external
world become means only through the operation of the human mind

Free-market thinkers: An
self
emerging subset of two
whom, according to
Actualization
percenters informed by the
psychologist Abraham H.
Internet. They understand
Maslow, are self-actualized
the world as it is and take
and able to make the most
Self-esteem
realistic human action
of their unique talents
to ensure their futures
thus fulfilling their
and their families
abilities to the
Love and belongingness
futures.
fullest.

Two percenters: Those few

Safety

Physiological needs

< 186 >

and its offshoot, human action. External objects are as such only
phenomena of the physical universe and the subject matter of the
natural sciences. It is human meaning and action which transform
them into means.

A close acquaintance of Mises, author Ayn Rand, examined similar

concepts with a good deal more poetry. For her, certain individuals are the worlds
movers and shakers. They are courageous men of action who may well be
brighter and sharper, and more thoroughly committed to their goals.
Such individuals do not confuse a good life with mere subordination to a
political regime or its regulatory demands. They are at ease with their own
uniqueness and seek to cultivate it. They have little desire to participate in the
collective. They see or try to see lifes problems as awaiting solutions rather
than as insurmountable difficulties. They appreciate simplicity, and do not seek out
complexity merely because it is impressive to others. They lead meaningful lives
rather than senseless existences. They are driven by truth or at least their own
truths.
This is not to say, by the way, that such people are in any way saints. We
have already pointed out that Albert Einstein and many others who are likely
considered two percenters by anybodys definition were by all accounts not very
nice people. They achieved what they could a great deal by any yardstick but
they certainly could not be considered free-market thinkers.
Seeing Clearly
Free-market thinkers, as mentioned earlier, are a relatively new
phenomenon, one that Western public schooling, and the group think it fosters
had nearly snuffed out late in the 20th century. Education is obviously part of what
constitutes the power elites information lever and is still an effective way of
dumbing down children who go into school eager to learn but are soon discouraged
by the factory-like atmosphere, the lack of creativity and a rising tide of peer
pressure.
Into this environment has come the Internet, and with it the first stirrings of
change. On the Net, most anything can be located and children are far more apt to
find it truthful substantiations of history, especially than most adults. The true
impact of the Net has yet to be felt, but it is certainly possible that many of the
individuals going forward characterized herein as two percenters will be freemarket thinkers over time. The greatest generation is yet to come.

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R ea l i t y B y t e : S c ho ol S can da l
T h e F u nc t io n i n g , F i nanc ia l I l l i t e r at e
Throughout Europe, Britain and the United States, public schools provide the cultural
conditioning that is a prelude to a lifelong acceptance of the monetary and fiscal status
quo. These schools produce children with little faculty for critical thinking and few of the
tools needed for independent thought. They are no threat to the power elite and, in fact,
make good, if uncritical, consumers of whatever promotions are aimed in their direction.
What has become todays worldwide public school system was founded in Germany
early in the 1800s. The German gymnasium system, in which children are educated in
compulsory fashion by grade, was put in place, at least in part, by the German military
establishment. It was intended to ensure that village boys would bond with each other,
grade by grade. The young men also trained together in the military and fought together
as one unit. This generated fiercely loyal fighters.
Contrast this with the American system before the Civil War, especially when children
were educated at home or in groups that were not grade-oriented but contained a mix of
older and younger children as well as a teacher.
Today, American teachers are unionized, a form of militarization comparable to that of
the public schools themselves. They have no real say over the curriculum they teach,
which tends to reflect whatever the political establishment wishes to emphasize at the
time. Politicians, preoccupied with re-election, have no great desire to throw up an
educated population of discerning citizens.
John Dewey was perhaps Americas most influential 20th century educator. He was also
to provide a final blow to American education, welding to it socialist practices reflecting
a belief that children should be educated to serve the state. Dewey once wrote: The mere
absorbing of facts and truths is so exclusively individual an affair that it tends very
naturally to pass into selfishness. There is no obvious social motive for the acquirement
of mere learning, there is no clear social gain in success thereat. (The School and Society,
1899)
Analyze Deweys objective the centralization and diminishment of learning to make
the individual more group-oriented and malleable and you have the mechanism of
diffusion writ small. Centralized education is no more or less effective than a centralized
sociopoltical and economic system, and its goals are similar as well. And just as
centralization fails the state, so it inevitably fails the students.


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Examples of prominent two percenters within an investment context

might be Warren Buffet, Bill Gates and George Soros. These three are certainly not
free-market thinkers by any stretch. But each of them understands the economy in
his own way. Separately, several years ago, they seem to have come to similar
conclusions about where economic trends were headed and began to buy silver at a
very low cost at the beginning of the decade.
Obviously, financially-oriented two percenters such as these three have the
capacity to absorb the bottom-line realities of the way the world really works
even if they are making plans to rearrange it, as is George Soros (who seems to
believe, despite his free market-oriented education, in a kind of command-andcontrol economic approach).
The Internet is at its best when it promotes ideas that allow individuals to
break free of programmatic thinking and gain the confidence and energy necessary
to influence events in a dynamic way. Using the Internet, it is not difficult to find
material that contradicts what might be characterized as accepted knowledge.
Schooling and mainstream media reinforce those concepts, but education is not
destiny. With the advent of the Internet, an informed world view one that may or
may not confirm previously held perspectives is easy enough to acquire, though
perhaps difficult to internalize.
Modern economic history is in large part defined by the clash between freemarket proponents and those who deal in state economic mandates. German and
Prussian economists favored state involvement in the government and believed in
econometrics and various kinds of modeling and forecasting. Austrian-oriented
free-market economics has no use for forecasting because trends, as they apply to
humans, are not predictable. As soon as a trend forms, human action will change it.
Austrians and free-market economists in general are anti-central banking
and anti-fiat money because a central bank necessitates projections of economic
activity and such projections are impossible to make. Former Federal Reserve
Chairman Alan Greenspan himself admitted that central bankers have no way of
determining how much money to produce or when to offer it. Almost inevitably,
central banks print too much money and offer too much credit, leading to the
business cycles that cause so much havoc in Western economies and throughout
the world.
The issue of predictability goes to larger issues of command-andcontrol and is one of the reasons that this book spends so much time on the
visible elite and suggests free-market thinking as a viable alternative. These
individuals and groups seek to run the economy as if it were a mechanical
device rather than an agglomeration of millions billions competing and

< 189 >

contributing their labor, intelligence, experience and creativity to create the

critical mass called the economy. There is no way the initiatives, creativity or
interaction of inventiveness can be predicted in the long term. The power elite,
for instance, was obviously surprised by the rise of the Internet, which even Bill
Gates of Microsoft, famously did not realize was a competitive threat until 1996.
By imposing a massive burden of regulations, taxes and civilian and
military force on the economy, modern money power suffocates progress.
Who knows how long people would live or how satisfying their lives would be
had the current sociopolitical and economic system allowed a free and easy
expression of talent and inventiveness in the last few centuries. Instead, the
power elite, as delineated in this book, has sought to rule the economy through
various visible and invisible mechanisms that most do not entirely understand.
Others, who do understand, still do not see, or choose to view, the amount of
destruction that is perpetrated by the regulatory, fiscal and monetary policies
in place in the West.
The balance of power swings back and forth between those who would
control societies and those who would let the true genius of the species express
itself as broadly and openly as possible. The tragedy is that those who step in
the way gain some power and money, and even prestige, but do much damage
to lifestyles, life expectancies and quality-of-life in general.
Brief History of Free-Market Economics
Economics got its start back in the 1600s with the followers of St.
Thomas Aquinas The Scholastics who built on the ground-breaking
observations of Thomas to explain how inflation really works and how
economic value accretes. Free-market economic theory was codified by Adam
Smith who came up with the term invisible hand to describe the workings of
the marketplace. In the opinion of Murray Rothbard, Smith got it wrong
however when he referred to the wealth of nations in his famous economic
treatise of the same title. For Rothbard, it is the wealth of individuals, and
nations have nothing to do with it.
What are certainly two of the most important laws of economics were
developed by Jean Baptiste Say and Carl Menger along with several other
economists not identified with the Austrian school. Say proposed what is now
known as Says Law. This simply states that supply and demand will reach
equilibrium if allowed to adjust within a free market, and without interference.
But the cleverness of Says law lies in the perception that supply can stimulate
demand as well as vice-versa.

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T h e B U S I N E S S C YC L E
s i m p l i f i e d f r e e - m a rk e t e c o n o m i c a n a ly s i s
Phase One of a business cycle is usually marked
by political infighting, increased regulatory burdens, higher
taxes and lower interest rates. The central bank prints money
and stimulates bank lending via easy credit.

CONSIDER FIXED INCOME

Phase Four of the

business cycle is the
bust phase marked
by inflation, slow
growth or no growth
and rapid collapse of
asset classes that have
risen too rapidly.
Animal spirits are
said to be deflated.

CONSIDER CERTAIN EQUITY

BUSINESS
C YC L E

CYCLES CAN LAST FROM

ONLY A FEW YEARS TO
20 YEARS OR LONGER

CONSIDER TANGIBLE ASSETS

Phase Two of the

business cycle is
marked by economic
expansion. Rates are
comparatively low.
Those closest to the
credit spigot gain
the most; politicians
and bankers claim
credit for the revival.

CONSIDER CERTAIN EQUITY

Phase Three is the boom of the business cycle marked by

enthusiastic expansion. There may be talk of a new economy and
investment trends are seemingly enshrined as certainties. Inflation
rises, whether or not the government admits it.

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M. Fadiman, MarketShock, 1995

Carl Menger is at least partially responsible for the concept that has
become the dividing line between the static analysis of classical economics and
the active analysis of neo-classical economics. The concept, known as marginal
utility, states that the individual value of a unit decreases as the amount or
volume of units increases. When we have more, what we have more of is worth
less. Additionally, the market itself must make the calculation as to the exact
worth of our units at the margin.
Ludwig von Mises, and later his students F.A. Hayek and Murray
Rothbard, developed or expanded upon the concepts of human action and the
business cycle. The business cycle, as defined in the modern day, is a primarily
central bank-driven phenomenon. The central bank prints more money and
injects more credit into the economy than is necessary. The volume of money
leads to inflation which, in turn, stimulates a boom. As the economy
overheats, products and services that are an unnecessary outcome of the
artificial boom become commonplace, leading to glut and, inevitably, to a
collapse. During the boom, the central bank may artificially increase interest
rates while also raising the amount of money available via credit and its
printing plants. This gradually eases the economy (best case) into a soft
landing after which the cycle begins again.
In a free market, the business cycle would be radically reduced because
gold and silver, dug out of the ground, would respond to market forces. Too
much gold or silver in the economy and prices would go down, closing mines.
Too little gold and silver and the prices would go up, stimulating mining
production. If the government and the power elite would agree to allow gold and
silver coins to circulate next to fiat money of all kinds, the world would soon be
back on the only kind of money standard that truthfully can be called honest
the free-market standard of gold and silver.
Storm Warning
The West is entering a time of increased stress and change. Be willing to
rearrange your basic programming, or at least entertain different perspectives
than the ones with which you have been brought up. If you live in America, you
will be facing some extremely tough circumstances in my opinion. You will need
every mental, emotional and intellectual discipline you possess to make it
through. Your loved ones will depend on your ability to see the world as it really is
and to act accordingly. They may not be able to do it themselves and may even
put impediments in your way. But ultimately, it is up to each individual to show
the requisite courage and common sense. This is an absolutely critical juncture.

< 192 >


Elite Retreat
Actually, the score is Ludwig von Mises 357,000 and John Maynard Keynes 326,000
according to a recent Google search of mentions of both names. This ratio may seem a
simplistic measure of influence or import (Michael Jackson garners over 20 million
Google mentions currently) but perhaps a decade ago only a handful of Europeans or
Americans would even have recognized Mises name, let alone the free-market
economic concepts he championed. Now nearly half a million Misesian sites are
rocketing around cyberspace. Whatever yet remains of the Western worlds shaky ruling
elite which has generally seemed to prefer a regulatory model to a free-market one
must find the above numbers worrisome. They seem to indicate a fundamental
social and intellectual shift of the kind that occurs when technology suddenly offers
vastly expanded access to important information. The last time this happened was
when Gutenberg invented the moveable type that allowed people to read the Bible for
themselves and to find out that the content varied considerably from the prevailing
dogma. Though it took about 100 years, the ramifications of this knowledge effectively
ended the high Middle Ages and ushered in the Modern Era. As the Catholic Church
crumbled, the Reformation gathered strength, and the royal families of Europe lost first
credibility, then divinity. There is no reason to doubt that the Internet may well do to
the worlds socio-political structure in 10 or 15 years what it took the Gutenberg Press
much longer to accomplish. Technology compresses time.
FMNN, June 2005

Hopefully, after you read this book, you will take further steps to widen your
horizons intellectually anyway by reading more about free-market
economics and how it interacts with modern sociopolitical issues, and how it and
the Internet are causing great challenges for the global power elite. If you
understand it, then you will be ready for almost any reconfiguration of society
and the economy. You will be neither surprised nor shaken. Together with others
who have the same approach, you will begin to muster the forces that will provide
the changes necessary to move away from the century of promotion into a
brighter, more challenging and ultimately more satisfying world.
Economic Action Alert
A commitment to honest economic education is part of the process
of becoming a free-market thinker. It is difficult to believe that the entire
system has been set up not for our benefit but for others; that we are being lied

< 193 >

to in order to be controlled. Our life views have been configured by propaganda

that we believed was reality.
Make a commitment to find out the truth. Two percenters are perhaps
focused on becoming the best they can be, but are not necessarily interested in fully
understanding the world around them or their place in it. Free-market thinkers want
to find out all they can about their environment. They think for themselves and
want all necessary and available input to do so. Once they are well on their way to
accomplishing this task, they may feel more comfortable about making the lifestyle
and investment decisions that are necessary to the health and welfare of themselves
and their loved ones.
Free-market thinkers use the Internet as a primary source of information
but they do not accept what is on the Net without question. They approach Net
research from a skeptical point of view. Free-market thinkers question all that is new
or different and attempt to validate information with other sources. After a while,
what is true should become clear. And, eventually, patterns will emerge. To facilitate
this familiarity, visit the bibliography at the back of this book. Consider subscribing
to free market publications that offer insightful discourse on sociopolitical events
and the likely resulting financial trends. Eventually, the analyses and perspectives
being absorbed should help generate better financial and even life decisions.

< 194 >

11

How the power elite gets rich by scaring you.

POWER ELITE PROMOTIONS

We have lost control of our economy.
Former Federal Reserve Chairman Alan Greenspan, Sept. 2004,
High Alert
So long as the Internet continues to evolve, the plans of the power elite are in
jeopardy. Sooner or later, people may well begin to understand the full scale of the
manipulation to which they have been subjected. It took 100 years from the invention
of the Gutenberg press to the start of the Reformation. The Internet, as a truly viable,
publicly available and useful source of information, has been around for perhaps a
decade.
The human condition has not changed much in 500 years, but elements have.
The great 20th century mechanisms of control are, for the most part, owned or at least
supervised by the global power elite rather than by a formal religious entity. Within this
context the similarities are striking, however, and mostly concentrated around the
United Nations. The various powerful governmental appendages include the so-called
Anglosphere and European Union, central and commercial banking, internationalist
corporations, managed trade agreements and a variety of secretive organizations that
purport to be only talking shops but are likely top decision-making apparatuses. How
will people express their loss of faith in this complex structure of sociopolitical and
economic control? The same way they did before: They will withdraw their support; they
will walk out the door; they will go elsewhere.
It will not be so simple, perhaps. There will be a struggle, though whether it will
take place on a physical level is not predictable. The proximate cause of the wars in

< 195 >

Europe after the Reformation were in part stirred up by Venetian manipulations,

apparently, as the great Italian city-states of the day sought to pit European powers
against each other, the better to control them. Certainly there are ways that the United
States can be pitted against other countries in an attempt to force a more globalist
outlook despite the informational undermining of the Net. This may even come to pass.
But direct or indirect attacks on the Net will no doubt continue as well. There is of course
the ongoing effort to link the Internet in the minds of the average citizen with
pornography, tax evasion and other activities that the average American might find
unsavory. And the Internet is already subject to certain political speech rules, though
due to massive blogger protests, these rules have not yet been applied.
Other initiatives that may pose a danger to the Nets current innovation and
freedom of speech as some see it, anyway include Internet 2, which is virtually a
worldwide effort to make the Internet even more efficient and serviceable but which in
its current incarnation is also intended to identify each users PC. However, what looks
inevitable now will be reconfigured by human action. Thousands, if not millions, of
clever minds with access to the Net, or at least parts of it, will continue to seek to reshape
it to their liking even as the power elite attempts a different course.
The Administration and Free Speech
The Bush administration is becoming more active regarding free-speech issues
and the Net. An early 2006, post, Rumsfeld Zeros in on the Internet, identified the
beginning of just such a campaign. Defense Secretary Donald Rumsfeld was warmly
greeted at the recent meeting of the Council on Foreign Relations. Rumsfelds speech
alerted his audience to the threats facing America in the new century. The growing
number of media outlets in many parts of the world too often serve to inflame and
distort, rather than explain and inform. And while Al Qaida and extremist movements
have utilized this forum for many years, and have successfully poisoned the Muslim
publics view of the West, we have barely even begun to compete in reaching their
audiences. Proactive news? In other words, propaganda.
In February 2006, Britains Sunday Herald reported on a document Rumsfeld
had commissioned and approved entitled, The Information Operations Road Map. The
Herald summarized the report as containing three major points. First, the Pentagon
would fight to dominate the Net and prevent cyber attacks. Second, the Pentagon would
embark on operations that would flood electronic and print media with information
favorable to the objectives the Pentagon wished to achieve. Finally, and most comprehensively, the Pentagon intended to try to take control of the earths electromagnetic
spectrum, thus giving the Pentagon the ability to decide what countries and users could
gain access to various communications devices.

< 196 >


Co n s p i r at i
The warning signs for the crackdown on the web have been with us for over a
decade. Censorship is accomplished by geolocation filtering: the restriction or
modifying of web content based on the geographical region of the user. In addition
to countries, such filtering can now be implemented for states, cities, and even
individual IP addresses.
GlobalResearch.ca

This statement of total war for total communications dominance is not

actually a new objective. The post mentioned above also tells us that, This revolution in
information warfare is merely an extension of the politics of the neoconservative Bush
White House. Even before getting into power, key players in Team Bush were planning
total military and political domination of the globe. In September 2000, the now
notorious document, Rebuilding Americas Defences written by the Project for the
New American Century (PNAC) said that America needed a blueprint for maintaining
U.S. global pre-eminence, precluding the rise of a great power-rival, and shaping the
international security order in line with American principles and interests.
Rebuilding Americas Defences also spoke of taking control of the Internet. A heavily
censored version of the document was released under Freedom of Information
legislation to the National Security Archive at George Washington University in the U.S.
A 2004 post at Kentroversy.com presented no less than four separate points of
peril or as the writer ( Kent Daniel Bentkowski) puts it, self sanitization.
(1) United Nations or U.S. Control of Domain Name Servers. He notes that
with the impending release of Internet 2, the sanitization of the medium is upon us,
and cites an article from the London Guardian Web site reporting that the Bush
administration was taking control of the 13 root servers, which control the domainname servers, thereby regulating Internet traffic.
(2) The Internet will be used as part of a terror attack against the United
States. Bentkowski points to recent (and not so recent) TV show plots (Foxs 24 among
others), as blueprints for conditioning the public to expect both terrorist attacks and
anti-constitutional infringements of liberty.
(3) Passage of hate-crime and hate-speech laws. It is important to note that the
real reason why hate-crime laws are passed is not to protect anyones religious beliefs,
ethnic heritage or racial identity. Most people cannot see these laws for what they really
are which is to stifle debate or silence a large group of people on a particular subject
that has been deemed off limits by the globalists.

< 197 >

(4) Taxation of Bandwidth and E-Mail. Bentkowski predicts the imposition

of so many taxes on Internet usage that it will become financially difficult for
anyone to reach a large audience. The taxation of either or both bandwidth and email will affect the underlying operation of the Internet.
Interestingly, Bentkowski did not foresee other justifications for attacks
on the Internet that are beginning to come from the U.S. Congress bills calling
for the abolition of Net gambling in the United States and also for outright
banning or blocking of numerous sites from libraries or schools. The Churchs
response in the Middle Ages to the mass production of books was first to burn
them and then to attempt to license them. Neither ploy worked and books

Alternative Reality Byte: the New Reformation

Jaques Barzun, author of the marvelous history of modernity From Dawn to
Decadence (1500 - present), makes the point that the Catholic Church as a panEuropean political force was done in by the Protestant Reformation, itself fueled
by the printing press. Once the Church lost the ability to control the direct
perception of scripture, thanks to the printing of (relatively) cheap bibles in
languages other than Latin, their loss of political hegemony followed.
This is what we are seeing now relative to the militarys control of information.
A year or so ago, someone in the Department of Defense told me that the thing
that would most affect the prosecution of the war in Iraq would be images of
DABs Dead American Bodies. The unplanned spread of photos of coffins, and
now of torture victims, means that control of this part of the war is outside the
militarys hands.
The spread of images from Iraq, both relatively plain ones like most of whats on
the YAFRO blogs to the horrifying images of torture and abuse from the Abu
Ghraib prison are all part of the removal of bottlenecks that will change the
political structure in ways we cant predict.
And it isnt just military affairs, its politics and business and everything else,
from attempts to coordinate evidence of Apples manufacturing errors
(previously handled case-by-case, but now becoming a kind of grass-roots class
action protest, to Apples horror) to the distributed amicus brief on the SCO case


< 198 >

continued to be printed. The Internet will likely continue to produce information

inimical to money power.
Promotions
We have discussed some of the ways Net freedom of speech can be
threatened. Now let us examine underlying reasons why Rumsfeld and others would
all but declare war on a network of interlocking computers, cables and satellite dishes.
The reasons, of course, are always the same and have to do with money. The Internet
threatens the ability of modern money power to control the very specific messages it
wishes to broadcast and, thus, the integrity of the dominant social themes.


conducted by the Linux community to the recent right of Americans to get
their medical records on request and within 30 days to the publication of
spoilers for popular TV shows.
I remember hearing about the security efforts being put into place around
delivery of Ken Starrs Whitewater (Lewinsky) report as it was delivered, and
thought Why are they bothering? It will be on the web in 48 hours I was
wrong, of course it was on the web the next day. Now I hear that military
officials are debating whether to release other photos with evidence of
American torture of Iraqis, and I wonder again why they are bothering. If the
images exist, they will be released. Its a fantasy to assume that they can reassert control of the spread of images by fiat.
A parallel and a counter-parallel jump to mind. The parallel is Barzuns point
that during the initial furor of the Protestant Reformation, neither the Church
nor Luther and his peers wanted a schism on the contrary, all of them
constantly maintained that what they wanted was to preserve the Church. Its
just that the Lutherans wanted to preserve the Church while reforming the
relationship between the institution and the laity, while the Church itself was
willing to talk about all sorts of reforms except institutional privilege.

Posted by Clay Shirky


< 199>

We have reviewed, for instance, the structure of the global power elite and also
the history of banking and how the fraud that is central banking works. We have seen the
ways that the global power elite has manipulated internationalist institutions to serve a
mightier master plan. But what has not been presented thus far is a full discussion of the
profit motive and how the above mentioned mechanisms can be tied together with
corporate solutions that allow the wealthiest among us to cash out, again and again,
depending on the success of what is being promoted.
Central banks print money and create credit, but only so much profit can be
taken even from the most active central bank. The problem then becomes (if you are
interested in really big money) how to remove money from the economy once it has
been generated and circulated. The easiest way is to remove it through publicly traded
companies profiting from investments generated via well-placed promotions.
Promotions exist at every level of the securities industry. When London or,
more likely, Wall Street launches even the biggest-name IPO, it is engaging in a
promotion. And promotions have certain signatures that are fairly ubiquitous. But a
promotion is only as good as the megaphone on which it is broadcast. If no one hears
the story, then no one is going to be effectively promoted. Now imagine controlling a
megaphone as big as the world. Imagine if you had created much of the global
infrastructure, including an increasingly seamless stock exchange on which vast
amounts of company stock could trade. Consider that, if there was a particular message
you wanted to send to promote a particular company or cause, you could count on
hundreds, thousands, of the worlds most important and esteemed statesmen and
bureaucrats to voice it for you.
Is this happening? The United Nations, the World Bank, the World Trade
Organization, the World Health Organization, even at the top levels of the EU
bureaucracy all of these entities were essentially implemented by a few wealthy
individuals. It can easily be argued by anyone with professional experience in the
marketplace that they were built, first and foremost as a kind of worldwide, promotional
megaphone. A megaphone that has been operated with increased efficiency and power
for the past 50 years.
Once the pattern is perceived, it may become more obvious to those willing to
view it with open minds. After all, the institutions in question hardly ever function
properly, or do what they were supposed to do. Corruption is endemic; charters are rarely
if ever fulfilled. Also, there is risk in setting up such a giant effort. Free-market thinkers
know that risk is commensurate with reward. Thus, such a vast undertaking must have
had the potential of yielding fabulous wealth unless it was truly a humanitarian
effort. (If that were the case, why is it being run so badly?)
I am not old enough to remember the crises and panics that swept the world in

<200>

the 1950s, though I suppose they had to do with the U.S./U.S.S.R. cold war. But I am
certainly cognizant of the scientifically controversial messages being promoted today,
many of which I have already mentioned bird flu, peak oil and global warming, just
to name a few.
How many of todays oil companies are profitably able to produce oil at $40 to
$45 a barrel? The answer is, all of them. So why at the time of this writing is oil at $70 to
$75 a barrel? The answer is that a well-orchestrated promotion has created a perceived
reality among the 98 percenters that we are running dry. The profits resulting from
this fear-inspired campaign are immense. And guess who receives the profits a
handful of stockholders in those oil companies. And who is paying at the pump? You
are. This is a promotional wealth-transfer at its most efficient, from the middle class
and the poor to the super-rich.
Unfortunately, people will spend more time planning a trip than they will
educating themselves about their core beliefs. They internalize these promotions and
actively participate in the resultant wealth transfers. They hear it on the newsand they
think they are informed. Were virtually drowning in oil, natural gas and coal, but still
people are spending thousands of extra dollars to buy small cars with big batteries
because they believe in the myth of peak oil and energy scarcity.
And then there is bird flu. People are scared stiff of bird flu even though its
killed maybe 100 people in two years. How about Islamofascism? Perhaps the supposed
Muslim hatred of the Wests purported democratic freedoms is not the case at all.
Maybe those responsible for hollowing out Americas productive capacity and basically
stealing the wealth of its citizens decided it would be better to create a historical illusion
that could effectively distract them from the crimes that had been committed. (Theyve
already moved onto the next country ripe for stripping - China - in any case.)
Incomprehensible Level
The dominant social themes we are discussing function at a level that is incomprehensible to most people. The breadth, power and intensity of these promotions are
enormous and can last for years, for decades regionally, nationally, throughout the
Americas, Europe, throughout the West, throughout the world. They take on the color
of what Carl Jung called archetypes. They become so ingrained in the public
consciousness that their viability is not questioned. Their existence is attested to by
bibliographies of books and articles, by doctoral dissertations, by endless media
coverage, by movies and documentaries.
These dominant social themes are introduced much as a symphony
introduces musical variations during performance. For a while one theme will be
emphasized, and then another and another. The market seems to dictate the themes

< 201 >

Alternative Reality byte: Dominant Themes?

A 2006 article posted at FMNN featured Mr. Paranoid American. Mr. PA is a man who is
well educated, or at least well read, thanks to the Internet and other sources. However, he
sees current events through a prism of rising paranoia. The following points have been
adjusted to further emphasize what Mr. PA might consider to be promotional elements.
9/11 and extant or incipient wars: The takedown of the World Trade Towers was the
work of American and Israeli military and secret service elements. It was designed to
generate a shooting war in the Middle East to consolidate Israeli power and to generate
globalist solutions to Middle Eastern violence. It was also designed to allow the
generation of laws and regulations further depriving U.S. citizens of civil rights. A
military conflict could help in intimidating the U.S. media as large U.S.-based media
entities could be accused of a lack of patriotism if they questioned either the events of
9/11 or the rationale behind it. Also the war against terrorism would soon become a
self-fulfilling prophecy, spawning the kind of third-world hate that might soon evolve
into a real war complete with real terrorists.
Promotion: Of the myth of 9/11 terrorists to justify a war that will generate profits for
the military-industrial complex, distract U.S. citizens from the increasing failures of
their economy, remove or diminish U.S. civil rights and intimidate American media.
Facts for Paranoids: At least some of the 9/11 terrorists identified by U.S. intelligence
personnel were later shown to be alive in Europe and elsewhere outside America and
remain alive today. The official explanation: misidentification. CooperativeResearch.org
Bird flu: So-called bird flu has apparently caused the death of less than 100 people
worldwide, but it has many convinced the next major health pandemic could strike at
any time. Bird flu has a predecessor, swine flu in the 1970s that was supposed to be just
as deadly as bird flu will be someday perhaps. If bird flu mutates into a deadly flu, it
may fulfill doomsday prophecies, but for now its a bird-killer, not a human-killer.
Promotion: Of the myth of bird flu to further militarize health care, encourage
questionable vaccinations, draw up plans for a state of emergency in Western
countries, make quarantining entire populations acceptable and enrich Big Pharma
and those who hold shares thereof.
Facts for Paranoids: U.S. Defense Secretary Donald Rumsfeld is the former chairman (and
still a major stockholder) of Gilead Corp., a previous manufacturer of Tamiflu, which is the
prescription remedy that was once touted as most likely to stop or mitigate the effects of


< 202 >

the avian flu virus, should it mutate into a human-susceptible form. The U.S.
administration purchased up to 20 million or more doses at a price of $100 per dose for $2
billion, though there is no evidence that Tamiflu aids in recovery from bird flu though
bird flu itself is not, anyway, hurtful to humans except in rare cases. Tamiflu Gilead Chair
Was ... Rummy, October 2005, FMNN
Peak oil: An artificial scarcity justify rising oil prices benefitting the oilmen in the
current administration and others involved with the energy industry in manifold
forms (biodiesel, solar or wind power, etc.) at a top level.
Promotion: Of the energy scarcity myth to generate new kinds of power companies
that Wall Street, Big Oil and Detroit find controllable and profitable.
Facts for Paranoids: One of Bush's closest relationships is with Houston-based oil-banker
Matthew Simmons who may also have an office in the White House. Simmons & Company
International (SCI) works in numerous areas of oil and gas, but its initial success was in
investment banking in the 1970s and 1980s, and Simmons, a well-respected member of the
internationalist Council on Foreign Relations has been a tireless promoter of the "peak oil"
theory - that the world is running out of energy. Iraq War to Destabilize Oil? FMNN
Internationalist do-gooding: Americas participation in the United Nations and its
funding of other internationalist organizations, as well as its negotiated free trade
treaties, are basically illegal unconstitutional. This system has been designed to
weaken the West through further redistributionist policies in anticipation of a continued
push toward global governance.
Promotion: Of the myth of viable international communitarianism in order to create a
massive promotional vehicle speaking with the voice of international authority.
Additional goal: Creation of a one-world government in waiting.
Facts for Paranoids: High on the U.N.s agenda is sustainable development requiring
government to regulate virtually all human activity in order to achieve "equitable" and
"sustainable" use of the planet's resources. Globalist Assault, GoFigure.com
European Union: Yet another attempt at constructing a building block for a one-world
order that actually diminishes the authority of nation states and the control the
citizenry have over them.
Promotion: Of the myth that a massive, regional bureaucracy can vanquish war from
Europe, that a hyper-regulatory, pseudo-democracy can expand wealth while
providing citizens with endless social benefits.
Facts for Paranoids: The so-called [EU] Parliament just rubber-stamps legislation
made by the unelected EU Council and Commission. This is simply not acceptable and
that is why we work with other groups across the whole of Europe who are also
concerned about their own democracy. NeilHerron.co.uk


< 203>

themselves, with the power elite identifying the strongest and then attempting to
exploit them as powerfully as possible for as long as possible. Usually motivated by fear
(global warming, etc.) these themes are eventually addressed by solutionscontrolled by
the same elite that tended to the initial theme.
The manipulation of these dominant social themes is likely the reason the
stock market has grown exponentially over time from auction-style stock and
bond trading in France to the current electronic 24-hour-a-day equity trading
around the world. It is the reason so much ink is spilled on how to invest in equities
and why every newspaper and investment radio and TV program freely gives out
equity information almost round-the-clock. It is why the regulatory structure,
captured as a matter of fact by the power elite, is so anxious to set up a single
seamless global stock-trading market. A market, in fact, is essential to making
dominant social themes pay off. Without a stock market one as large and
powerful as the promotions themselves and a good deal of central-bank-supplied
liquidity, companies servicing the dominant social themes of the day cannot be
created, expanded and eventually brought public.
The United Nations, World Bank, Bank for International Settlements and a host of
trade organizations and international judicial entities form a good part of the echo
chambers that provide the triumphal resonance necessary for a successful promotion on
an international scale. Through them, the appropriate concerns are aired: Kofi Annan
makes the right noises, the ambassadors voice concerns, the diplomats and the leaders of


Co n s p i r at i
Our countries have been officially bankrupt since the 1930s and you are paying
taxes, going to court, and applying for licenses on behalf of a fictitious entity
that does not exist, except in theory. Oh yes, and the government is not a
government, it is a private corporation. I dont remember hearing any of this on
the television news. Some explanation: In the 1930s the United States, Britain,
France, Germany, Italy, Spain, Portugal, and many others, officially declared
bankruptcy to the international banks, but didn't tell the people. According to
researchers into these matters, this was agreed during the years of the Geneva
Conventions in Switzerland between 1928 and 1932. It would appear, however,
that the documents containing the details of the bankruptcy declarations have
never been made public.
May 2006 David Icke e-newsletter,

<204>


Co n s p i r at i
I gained much of my information from my late father G. A. Frost. [He was an elite
commando] during the Second World war. Given time I will write more on his fascinating
life. The central issue of his wartime career was that he was Churchills assassin namely
he was employed in the covert removal of perceived troublesome characters such
being certain government ministers of the Irish Free State and a somewhat nasty Swede.
According to my father he was ordered by the late King and Churchill to remove Prince
George (who my father was told was the figure head of an establishment plot to murder
Churchill, the King, the Queen, and the two Princesses and replace same with Prince
George and a number of infamous characters out of the Red Book). The plan was then
for the British Empire to join up with Hitler against the Russians; in turn Germany would
make peace with the U.S. and declare war on Japan. Such a plan was well known to the
Russians viz Prince Georges homosexual relations in particular with Anthony Blunt a
factor which explains why it was not until the actual defeat of Hitler in 1945 that Russia
declared war on Japan.
MartinFrost.ws

various countries gather together to provide the necessary gravitas. Often what comes out
of such grand convocations is the appointment of one industrial concern or another to
help the international community address the issue whether it be war, weather or
disease.
Naturally, industry groups are well compensated for their services. We can see
this in Iraq, where certain companies get the bulk of the reconstruction business. But it
works in plenty of other ways. Let modern money power promote vaccines, and global
governance will generate a tremendous level of concern about something called bird flu
or swine flu for that matter. Let peak oil suddenly arise as an issue and, lo, car
companies are providing battery powered cars and setting up bio-diesel fuel stations
throughout the Western world.
Power-elite promotions seldom stop. They are always building and subsiding.
Sometimes they make enormous amounts of money and sometimes they make
slightly less enormous sums. The tech bubble of the late 1990s was a truly spectacular
example of wealth redistribution. While the power elite may not have foreseen the
power of the Internet, it is fact that once Net mania began to roll across the marketplace,
major corporations piled on with international marketing programs, national
investment magazines and newspapers reinforced the theme and broker/dealers grew
rich recommending high tech stocks.

< 205>

Not so Artificial
The beauty of the above scenario is that most, if not all, of it is legal. The
regulatory authorities who are supposed to police the market do not have the frame
of reference nor the brief to focus on world-spanning promotions. The annual
Bilderberg meeting is probably the largest, formal insider-trading conference of its
kind, yet it is never identified as such (in fact, in the past, it was rarely identified at all).
Discussions of wars, commercial trends and political candidates by the wealthiest and
most important men and women in the world are elevated high above trivial regulatory
considerations. And what is an observer to think? That, as with the mushrooming global
scene of transnational bureaucracies and NGOs, the activity is motivated by charitable
enthusiasm? It is not. There is a profit to be made, so long as the voices raised against
these activities are few and their message of opposition not clearly stated. And that
message should be that it is not good for such powerful conclaves to take place in secret.
It is not good because it is obvious that no distinction is made between the private and
the public by these individuals. Important heads of state and billionaires mingle to
discuss a sensitive agenda in a cocoon of security and privacy. Whatever consensus is
achieved and apparently consensus is sought the result is that a handful of people
have generally decided on various courses of political, economic and even military
action without the publics knowledge.
The elaborate financial regulatory structure surrounding the Wests securities
and commodities markets are barriers to entry rather than guarantors of fair play. In
the United States, anyway, they could hardly be anything else. Both the Securities and
Exchange Commission and the now split-in-two NASD are monstrous morphs of
unconstitutional creations. In the United States, anyone aspiring to own a broker-dealer
is obliged to join the NASD a government imposition that travels well beyond the
borders of restraint-of-trade. And thats just the beginning. FBI background checks,
NASD tests, inspections, expenses, taxes, fees and sundry considerations all must be
confronted before the harassed businessperson brokers or deals a single stock.
Both the Securities and Exchange Commission and the NASD regulatory
commission have so many rules and regulations on their books that either group can fine
or suspend a business into oblivion should they choose to do so. This is an enormous
power, but it is aimed at the little guy the supplicant attempting to do business in the
worlds most populous and boisterous securities arena. It is increasingly difficult. Worse
still, as the U.S. regulatory structure is exported around the world, other markets become
more difficult to do business in. Only the worlds largest firms will have the resources and
power to capture the regulators, hire the lawyers and generally provide a level of legal
responsiveness that the 21st centurys financial environment will demand.

<206>


2000 tech bubble
Inflation-adjusted Real Dow chart
from January 1924 to end of 2005

Peak of 1929
bull market

R ea l i t y B y t e : R ea l D ow C ha rt I n san e
An October 2005, column at FMNN charted the Dow throughout the 20th century
without inflation and explained it as follows: [Our] anonymous chart creator said
he became obsessed with the Dow's real return once he saw a similar chart published
in the Wall Street Journal in the late 1990s. He called the Journal trying to get them to
reprint the article without success. He doesn't know why the chart showed up in the
Journal or why it never appeared again. ... What's it look like? A roller coaster scrawled by
an asylum inmate, one that puts paid to the notion that "buy-and-hold" is an adequate
strategy when confronting the merciless forces at work in securities speculation. One
could buy and hold, according to this chart, from peak-to-peak an average of 35 years,
far too long for most folks. Our anonymous chemist sent us an e-mail explaining the
above chart, as follows:
The purchasing power of the U.S. dollar has shrunk over time. In August 2005, $100
bought what $78, $55, $28, and $16 bought 10, 20, 30, and 40 years earlier, respectively.
So, meaningful examination of the Dow over time must be done on a purchasing
power basis. The Dow over time, shown as purchasing power -- what it could buy - is
called the "Real DJIA"
The long-term Real DJIA is a "severe roller-coaster" on a 3.5 decade time scale. (The
Real S&P is similar.) This dominant historical reality is overwhelmingly relevant to
long-term stocks-holders and to the Social Security personal accounts issue.
The dominant historical reality [he wrote us] is ignored by the financial services
industry and by the financial news media this is the big CON. For their own gains, these
two entities treat the people like mushrooms, because they can. Leaders should choose
LEADERship, not treat the people like mushrooms because they (think they) can.
You may see the original chart at http://HomePage.Mac.com/ttsmyf.

< 207>

There will be consequences. Americas capital markets have been efficient and
fair, to a point, despite the increasingly horrendous regulatory burden. They have
provided financing for a variety of innovative products and services. But tomorrow,
as legal trends continue to bite, the securities markets of America, and quite
possibly the world, will be the playground of only the biggest intermediaries who
will demand a sizeable gatekeeping fee.
For those who are not enamored of the system as is, the fallout can be
severe. The regulatory authorities will pursue them and virtually blacklist them.
And these wretched accused are guilty of crimes of a kind that were not even
imagined 100 years ago. And for good reasons. The shelf load of legal tomes under
which Wall Street bookcases groan is a recipe only for litigators.
Just as everyone agreed the emperor wore clothes when he did not, so all
involved, or most anyway, assure each other that this outlandish charade is


R ea l i t y B y t e : D E L I B E R AT E U N I O N
Timeline: European Union
( 1 9 4 8 -2 0 0 7 ) 5 9 y ea r s to b u i l d
1948: European Community planned to secure peace and economic cooperation
1957: Belgium, France, Germany, Italy, Luxembourg and The Netherlands
create the European Economic Community (EEC)
1973: Denmark, Ireland and U.K. join the EEC
1979: The first European Parliament elections take place
1979: Single European Currency Unit was introduced (later to become the Euro)
1981: Greece joins EEC
1986: Portugal and Spain join the EEC
1991: The EEC is renamed the European Union (EU)
1995: Austria, Finland and Sweden join the EU
2002: The Euro is introduced in 12 of the EU member states
2004: On May 1st, 10 new member states join the EU.
2004: European Parliament elections take place in the U.K.
2005: U.K. takes its turn as President of the European Council of Ministers
2005: EU constitution defeated
2007: Bulgaria and Romania set to join the EU
2008: Lisbon Treaty status remains undecided
Source: www..HeadsUp.org.uk (text verbatim)


<208>

necessary and appropriate. Each year, the Western public is assaulted with reports
of more white collar criminal danger. Each year, more and more protective
regulations are manufactured. And the next year it is worse. There is no reference
to the free market anymore. Neoclassical economics, variable pricing, marginal
utility, every part of the great edifice of sensible economic thought created at great
human cost in the 19th and 20th centuries is disregarded or even worse does not
even rise to the level of disregard. It seems to exist in another universe. It is a
lamentable situation and growing worse especially for those entrepreneurs who
have to suffer through it and come away tarred as white collar criminals simply
because they wished to stand up for themselves.
It seems, increasingly, a regulatory prerogative in America and no doubt
elsewhere in the world, that litigators need not explain the criminal or civil pursuit of a
targetanymore. And often those so targeted will settle. Certainly that is the case when
it comes to the SEC, as such cases are civil and the individual involved does not have to


R ea l i t y B y t e : W H AT S T H E H U R RY ?
Timeline: North American Super-R egion
( 1 9 9 3 -2 0 1 0 ) 1 7 y ea r s to b u i l d
December 1993: President Bill Clinton signs NAFTA into law
2001: Robert Pastors 2001 book calls for the creation of a North American Union
April 2001: President George W. Bush signs Declaration of Quebec City
January 2005: NAFTA railroad proceeds
March 2005: Kansas City signs cooperative pact with Michocan, Mexico
March 2005: Agreement to build the Texas NAFTA Superhighway
March 2005: Security and Prosperity Partnership of North America established
March 2005: Dept. of Commerce creates SSP to implement North American Union
April 2005: KCS purchases control in Transportacion Ferroviaria Mexicana
April 2005: NASCA introduced in Senate
May 2005: CFR Issues its Building a North American Community Report
June 2005: Follow-up SPP meeting was held in Ottawa, Canada
June 2005: Senate Republican Policy Committee policy paper released
July 2005: CAFTA [passes] the House of Representatives by a 217-215 vote
June 2006: Mexican customs office to open with Kansas City SmartPort
2007: The Trans-Texas Corridor (TTC) is ready to begin construction
2010: Suggested implementation of North American Union


< 209>


Reality byte: UFOs Promotion from Grave
An August 2005 FMNN post focused on a classic promotion by (recently deceased)
Laurence Rockefeller, as follows: From his apparent funding of Ho Chi Minh in the
1950s, to reported attempts to co-opt the 1960s anti-war movement (funding its more
violent inclinations in order to put pressure on the nations policing and regulatory
structure to react), to his support for the environmental movement, Laurence
Rockefellers philanthropy has seemingly always contained a deeper purpose one of
provoking a reaction that would move society in the desired direction from the
Rockefellers point of view, toward more control and regulatory authoritarianism.
Laurence ... wished to utilize a belief in UFOs and alien civilizations to help in the further
implementation of governmental and quasi-private controls over behavior. Further
excerpts, below:
Laurence Rockefellers ... enormous wealth was turned toward supporting UFO research
later in life. ... [He] is said by some to be one of the authors of the current UFO [craze]. One
does not ordinarily associate the Rockefellers with UFO research, yet Laurences influence
on the movement is remarkable and has given rise to increasing speculation on the Net
about his motives while doing nothing to diminish general paranoia about the
Rockefellers in general. ...
Rockefeller was active during the last decade of his life in supporting [UFO]
investigations. He funded Dr. John Mack's Center for Psychology and Social Change in
Cambridge, Mass., to the tune of $250,000 a year. (Dr. Mack investigates alleged UFO
abductions) and also bankrolled at least two meeting sessions of the Starlight Coalition,
a group said to be made up of former intelligence officers and military men interested
in UFOs. Interestingly, Laurence also funded his own plan to establish contact with aliens
not by the scientific radio-telescope method of SETI, but by signaling with banks of
powerful halogen lamps. Beginning in 1999, he funded several studies on crop circles,
convinced he was onto something important (despite hard evidence that at least some
of this UFO evidence was a longstanding practical joke, perpetrated by Doug Bower and
Dave Chorley, a pair of puckish Brits). He also once held a UFO conference at his
Wyoming ranch.
Laurences interest in the field of UFOs ... has inspired much speculation as to deeper
motives. According to Dick Farley, who worked for the organization for about three years,
Rockefeller's interest seemed to be the promotion of alternative religious and
psychiatric/psychological paradigms, including so-called UFOs and abductions, having
Global Mind Change potentials. [Common Cause Magazine-Rockefeller/UFOs].


< 210 >

plead, but can maintain innocence even as his E&O insurer pays the fine. (The target
must pay only if the case goes to trial and a guilty verdict is returned.) SEC attorneys,
not surprisingly, have filed increasingly frivolous lawsuits over the years. There is every
reason to agree to pay up and almost none to go to trial. Securities law, notional to
begin with, has been reduced to a kind of bureaucratic blackmail a formalized legal
dance in which lives are disrupted, but not outlandishly, and after the money is
exchanged no one breathes a word. This is the system of securities and commodities
governance that has been exported to Japan, to Europe and England and no doubt
eventually to the thinly traded markets of Third World countries as well.
Is it a malicious system? It certainly is a hurtful one damaging to the professionalism of the litigators, and of course to the unwary and unwilling entrepreneurial victims themselves. The control sought by the visible power elite is intended to keep
its promotions intact and to winnow out the promotions of others who wish to take
advantage of the powerful mechanism that has been built and put in place. This it does
most effectively at this point. Whether it will continue to do so is perhaps more
questionable. As the regulatory excesses become more obvious and the system
becomes increasingly dysfunctional, it is possible that the Internet will do to it what it
has begun to do to many of the power elites other promotional exercises in commandand-control. What is legal one day is subject quite literally to millions of dollars-worth
of fines the next. The idea is to capture the funds of the working poor, the middle class
and even the wealthy, but to keep the system itself out of reach of all but a chosen few.
The hurdles at this point are quite high. And the institutions involved are so
large that, once a tone has been set, a problem identified, a promotion initiated, the
conversation itself needs no great encouragement to continue. The academic,
diplomatic and journalistic communities will carry forth on their own. These groups
do not make a distinction between what is a conversation that is naturally generated
and sustained and one that involves the artificial elements of a promotion.
This is not an easy argument to make or accept even for readers of High
Alert. In general, we dont like to believe we are being manipulated. Also, we are not
apt to easily acknowledge that our closely held belief systems involving fuel
substitutes, health concerns or even global warming and the like are part of a global
promotional scheme. The argument will be, perhaps, that these are valid concerns
even if someone, or some group, is taking advantage of them. But that is just the
point. Some group (or groups) is indeed taking advantage of these concerns,
amplifying them, certainly distorting the science, in some cases anyway, to support
certain conclusions, getting laws passed and regulations levied to indicate the
seriousness of the problems at hand and as a bonus to create additional
market opportunities.

< 211 >

Health Care, Too

The distortion of science that increasingly accompanies global money power
promotions are not limited to simply revenue raising. Often, they can reduce consumer
choice, thus reducing lifestyle and health options. A good example would be Codex
Alimentarius. This strange sounding name stands for a disturbing trend the criminalization of nutrition supported by the Commission of the UN World Health
Organization. In July of 2005, FMNN reported the story as follows:
[The UN] has [adopted] new guidelines for vitamins and food
supplements. The guidelines will set limits on potencies that are allowed
in these products and apparently may even be regulated insofar as US
citizens are concerned via the Central American Free Trade Agreement
(CAFTA). ...
Congressman Ron Paul (R-TX), one of the USs only true free-market
legislators, has reportedly said that the Codex Alimentarius Commission,
an offshoot of the United Nations, is working to harmonize food and
supplement rules between all nations of the world. Under Codex rules,
even basic vitamins and minerals will require a doctor's prescription.
Although the legal potencies of vitamins havent been announced
yet, critics believe that the limitations will eventually follow the path of the
risk-based World Health Organization's Nutrient Risk Assessment Project.
Vitamins and other homeopathic medical solutions may be restricted
based on potential health risks without any analysis to their benefits. In
order to justify restrictions on vitamins, those responsible for the final
Codex may argue that because super-high doses may be dangerous,
smaller doses may be as well. The lower-end dosages may be modeled
along the lines of the restrictive German formula. In Germany, currently, a
doctors scrip is often needed, reportedly, even for the purchase of aspirin.
For about 30 years the FDA has prevented any further research into
the use of vitamin B-17, which reportedly has had beneficial effects
regarding cancer prevention. Now other potentially promising vitamins
will surely come under regulatory scrutiny and the road to proving their
efficacy will surely become more difficult as well.

Imagine, if society were comprised mostly of free-market thinkers, how much

more difficult would it be for those large pharmaceutical and bio-tech companies to
continue their regulatory manipulations? The bottom line is that it requires a dumbed
down public to accept the kinds of massive health-care restrictions that a Codex-like
promotion contains. Will they stop with the West? China, for instance, is famous for

< 212 >

R ea l i t y B y t e :
humanitarian efforts or rogues gallery?
Had the U.N. deliberately set out to design a program opened to manipulation by Saddam
Husseins regime, it is hard to think how the U.N. could have improved upon the
arrangement that was put in place.
Journalist Claudia Rosett,
2004 testimony to National Security House Subcommittee
The U.N. from the onset envisioned the Oil for Food program as a get-rich-quick program.
Anans Secretariat office alone collected more than $1.4 billion over the life of the program
... yet due to a U.N. policy of extreme secrecy there are no public records of the program.
The UN: Corruption Junction,
FrontPageMagazine.com, June 2004
The World Bank has lost about 100 billion dollars slated for development in the world's
poorest nations to corruption since 1946, nearly 20% of its total lending portfolio, according
to a U.S.. Senate committee. Experts estimate that between five and 25% of the 525 billion
dollars the Bank has lent since 1946 has been misused. This amounts to 26-130 billion
dollars.
Poorest Pay for World Bank Corruption,
Inter Press Service, May 2004
The World Health Organization (WHO) was mired in what the British Medical Journal
called "a morass of petty corruption and ineffective bureaucracy." Under Director General
Hiroshi Nakajima, a Japanese pharmacologist, WHO was so widely understood to be
mired in cronyism and financial irregularities that such longtime boosters as Denmark
and Sweden slashed their contributions; even the groups official auditor resigned in
disgust. WHO is an organization by and for bureaucrats and health ministers for
whom it provides jobs, fellowships, and chances to go to conferences in exotic vacation
spots not the worlds sick.
WHO Cares? Reason.com, July 2004
By the 1990s, say observers, UNICEF had become a bloated U.N. bureaucracy:
Administrative costs for "regional offices" and headquarters [was] more than a third
of the approximately $1 billion budget. An independent audit found bloated
overhead costs, lack of financial control and a proclivity for luxury travel
accommodations and overstaffing.
UNICEF Another United Nations Boondoggle ,
National Center for Policy Analysis


< 213 >

alternative healing methodologies. Meanwhile, pharmaceutical remedies are often far

less effective than touted and almost inevitably generate more side-effects than the
FDA can ever admit.
Wealth without health is not important and this book is designed to focus on
your mental health and provide alternative investment strategies. However, do not


R ea l i t y B y t e :
T h e R e f or mat io n : Viol e nc e B e g e t s ...
The French Protestants were called Huguenots (pronounced, hoo-guh-no), and
members of both the Bourbon and Montmorency-Chatillon families were major
leaders in the Huguenot movement. The Huguenots represented only a very small part
of the French population; in 1560, only seven or eight percent of the French people were
Huguenots. They were, however, concentrated in politically important geographical
regions; as a result, they were disproportionately powerful in the affairs of France. It is
important to understand that the rivalry between the Guises and the other two families
was primarily a political rivalry; this political rivalry, however, would be swept up in the
spiritual conflict between the Catholic church and the new reformed churches.
Francis II died in 1560 after only one year as king. At his death, his younger brother,
Charles IX (ruled 1560-1574) assumed the throne. Because he was too young to serve as
king, his mother, Catherine de Medicis became regent (a regent is the ruler of a kingdom
when the king is incapable of exercising that rule). Catherine was a brilliant and powerful
political thinker; she understood right off that the Guises were a threat to her and to her
son. In order to tilt the political balance away from the powerful Guise family, she
cultivated the Bourbons and the Montmorency-Chatillons. In the process, however, she
also had to cultivate the support of the Huguenots who were closely allied to those two
families. Until this time, it was illegal for Huguenots to worship publicly (although there
were over 2000 Huguenot churches in 1561). In 1562, Catherine took a great leap forward
in religious toleration by allowing Huguenots to hold public worship outside the
boundaries of towns. They were also allowed to hold church assemblies. Catherine was a
Catholic and wanted France to remain Catholic; she did not, however, want the Guises to
be calling all the shots. The only way to chip away at the political power of the Guises was
to increase the political power of the other major families and their Protestant allies.
The Guises, for their part, understood what this religious tolerance was all about and
quickly clamped down on it. In March, 1562, an army led by the Duke of Guise attacked


< 214 >

discount the importance of staying on top of truthful and accurate coverage of all kinds
of medical solutions that may not be found in the corner drug store. And understand the
deviousness of a system that would purposefully discredit such products through
various regulatory means. It is surely a system that appears to be under some stress as
the Internet continues to report on non-pharmaceutical cures featuring vitamins, herbs


a Protestant church service at Vassy in the province of Champagne and slaughtered
everybody they could get their hands on: men, women, and childrenall of whom
were unarmed. Thus began the French Wars of Religion which were to last for almost
forty years and destroy thousands of innocent lives.
For all her brilliance, Catherine was placed in an impossible position. She did not want
any noble family to exercise control over France; she simply wanted power to be more
balanced. She also did not want a Protestant France. So the only strategy open to her
was to play both sides, which she did with enormous shrewdness.
This balancing game came to an end, however, when Catherine helped the Guise family
plot the assassination of Gaspard de Coligny, a Montmorency-Chatillon family member
who was one of the major leaders of the French Huguenots. The assassination failed;
Coligny was shot but not killed. The balancing game was over: the Huguenots and
Coligny were furious at both Catherine and the Guises. Fearing a Huguenot uprising,
Catherine convinced Charles IX that the Huguenots were plotting his overthrow under
the leadership of Coligny. On August 24, 1572, the day before St. Bartholomew's Day, royal
forces hunted down and executed over three thousand Huguenots, including Coligny, in
Paris. Within three days, royal and Guise armies had hunted down and executed over
twenty thousand Huguenots in the single most bloody and systematic extermination of
non-combatants in European history until World War II.
The St. Bartholomew Massacre was a turning point in both French history and the
history of the European Christian church. Protestants no longer viewed Catholicism
as a misguided church, but as the force of the devil itself. No longer were Protestants
fighting for a reformed church, but they suddenly saw themselves fighting for
survival against a Catholic church whose cruelty and violence seemed to know no
bounds. Throughout Europe, Protestant movements slowly transformed into
militant movements.
Richard Hooker


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and other non-traditional treatments.

Watch bird flu and its impact on the markets. Will the 98 percenters show up in
a buying frenzy to swallow truck loads of "miracle" stocks when the fear campaign is fully
revved up? Or will the power elite retreat from its redistributive intentions and be
content with the billions of dollars it was able to suck out of taxpayers pockets as their
governments rushed to supply the much needed cash to secure vaccines for a pandemic
that doesn't yet exist? Because of the power of such promotions, people are stampeded
into corporate solutions based on inaccurate information and faulty conclusions.
Resources are thus misallocated, funds are misapplied. Great wealth accrues to a few
but illegitimately. And the quality of life goes down as a result.
The Power of Two Percent: Protect With VESTS
Those who accept the above hypothesis, will now comprehend how government
really works, how it is has been put to use by those involved in global promotion as part of
a larger money-making effort. (Just follow the money and it will become clear.) Why does
government, any government, so often act as an enemy of the people? Why has the U.S.
government attempted to strip more and more freedoms from the all-too-passive
citizens of the earths oldest existing republic? Why is the Internet under attack? The
simplest explanation is that a controlled and controllable population is more apt to accept
whatever is promoted to it. Properly dumbed down, an audience marinated in the
nationalism, jingoism and contextual vacuum of a public school curriculum is likely to
buy, without very much discernment, whatever the higher-ups wish it to do.
Still, the game of promotion as described above is not without risks. The
banking community is behind many promotions, and that is a powerful culture that
demands rash, bold, even violent acts in pursuit of business goals. Let the mechanism
become too obvious, let the Internets information spread too far, let the economic
environment prove too perilous and a noxious mix of information and misinformation
will boil to the surface and make a good deal of trouble more, perhaps, than even the
power elite can comfortably deal with.
What might occur? After great struggle and furious debate, the markets could
become more privatized and less distorted. Companies could rise and fall based on their
merits rather than on gigantic, government-linked promotional efforts. The unseen but
stifling hand of money power might lift a bit or maybe even a lot.
If the power elites promotional mechanism is subject to exposure by the
Internet, then what will happen as the credibility of these promotions erodes? High
Alerts Visible Elite Super Tendencies Strategy (VESTS) system brings together the
business cycle, observation of the power elites regional and generational money flows
and free-market economic analysis. The goal: to predict investment opportunities in

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Elite Retreat
Just before the 2006 Bilderberg meeting in Ottawa, Canada, alternative Net reporter
and leading conspirati Alex Jones was detained at the Canadian border. The secretive
Bilderberg Group is composed of some of the most powerful and wealthiest people in
the world. According to Jones, anyway, the Bilderbergs did not want him in Canada. A
decade ago, would the Bilderbergs have focused any time or energy on Alex Jones? Yet
today, if this incident took place as he suggested and there is no reason at this writing
to doubt that it did something has changed. Alex Jones has nailed no thesis to church
property. He has not needed to. The Internet is his door and his informationhas been
transmitted not via cold type but on a thousand a million points of light.
Anthony Wile, FMNN

regions, securities and commodities. The style: asset allocation based on overlays of
three separate models and their interactions. In formalizing this sort of approach, High
Alert hopes to provide a strategy and vocabulary that, if utilized, may act as a starting
point. Unbundled, the VESTS investment system looks like this:
1) Business cycle analysis: This is the first and fundamental overlay of the VESTS
system. The free-market thinker using this approach will ascertain where the economy is
in the business cycle before committing funds. Early in the cycle, equities are promising
because of the monetary stimulation being generated by the central bank. Later in the
cycle, with rates beginning to rise and equity markets stabilizing, bonds will be cheap
and so will commodities. Finally, as boom turns to bust, it will be time to lighten up on
fixed income and real-estate investments such as REITS. Gold and silver stocks may have
moved up quickly, but eventually it will be time to reallocate some assets away from
precious metals, or at least to begin an active hedging program via options, etc.
2) Global elite, money-power promotions: This is the investment-oriented
response to various global-elite promotions. Identify key figures in worldwide
governance, ascertain their overlapping interests and then attempt to generate a
financial play that takes advantage of appropriate observations. The main hurdles in
such an approach have to do with the identification of the individuals, the
methodology of the investment itself and, even more fundamentally, the idea that
such an approach can provide a serious portfolio configuration. Recall, however, that it
is the central bank that generates the shape of the business cycle, not the general
economy. Additionally, the themes of the 1990s and now the 2000s have been
remarkably similar having to do with various alarming trends such as global

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warming, bird flu and peak oil. Accept the information and seek out first the region,
then the trend opportunity. China is an obvious regional trend, with specific
investments to be made depending on the business cycle. An equity play might be
appropriate in China, given its still-booming economy, yet the rest of the world is
involved in a much different scenario. It is these complexities, and many others, that
make interactions between global elite promotions and the business cycle dynamic
thus making investing challenging in both timing and application.
3) Free Market Response: This is the final and most difficult cyclical overlay. The
global power elite seeks to control information, dominate the legislative process and
create cross-platform (country-to-country or theme-to-theme) promotions yet
ultimately the free market, not the global elite, will decide what is profitable and what is
not. The global systems the power elite has built will gradually become less trustworthy
and may cease to do their jobs at all.
Moreover, as the Internet exposes these increasingly transparent promotional
configurations, the likelihood of its success will diminish. It is not so much the individual
exposure as the cumulative effect of millions comprehending the truth, day by day and
blog by blog. The current arrangement is bankrupt logically and financially. The strategy
of war and annihilation for peace and profit is increasingly ineffective. Promotion is
subject to the check of the Internet. The longer the promotional vehicles (world bodies,
etc.) are sustained, the more obvious their ruinous ineffectiveness becomes.
For all these reasons, the promotional power and hyped-up money flows are
bound to collide with, and perhaps yield to, free-market principles. In fact, much as an
encounter with inflation may kick off an inflationary cycle, knowledge of what is
occurring via money-power promotions makes economic laws visible. Instead of
wondering why the United Nations does not work out, or why the economic position of
the United States is deteriorating rapidly, a widening pool of free-market thinkers will
begin to anticipate the latest power elite-engineered disaster and react accordingly.
Money flows that used to follow the power elite promotions arriving at
exactly the right time to take out those who wanted to get out now will arrive on a
different and more inconvenient schedule. People will anticipate power elite
promotions, or perhaps they will simply not participate at all.
This is indeed the final overlay the final cyclical analysis put into place by the
free-market thinker using the VESTS system. The erosion of money-power promotional
effectiveness will lead to a variety of dislocations including, eventually, the deterioration or
demise of the 20th centurys central banking system. As the system fails, the VESTS system
should prove itself not so much as a technical tool but as a broadly comprehensive way
of interpreting an increasingly complex and economically unstable speculative climate.

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Storm Warning
As the elements that created the age of promotion come increasingly under
attack, the global elite will surely grow more confrontational. Free-market thinkers will
accept the inevitability of change, look for appropriate personal and professional
opportunities and protect themselves and their loved ones by making prudent lifestyle
choices. As FMNN commentator Rick Maybury wrote in a recent newsletter, a family who
wishes to prepare for whatever the future holds will stock the necessities. Water, dried food,
an alternative energy source and weapons of self-defense are all part of preparations.
Governments do change, but human action remains the provenance of the
individual. One day perhaps, historians will look back on the 20th century and label it
the Age of Promotion as High Alert has done. By then, perhaps, the system will be
finished for it has not been up and running for so very long, and has been served to the
public secretively, and without explanation. Thus, the likelihood that there is a great
reservoir of positive sentiment for modern money power and its activities is fairly
minimal. Exposure, via the Internet, of what has been taking place will assuredly have
a negative impact on the extension of the Age of Promotion into the 21st century.
We need not fear, but we must continue our discussion and utilize all available
tools, including the Internet, to do so. It is possible to build a fairer world with less
government and more private initiative. Human action as opposed to communal
governance can become an accepted option as people educate themselves one by one
and then speak to others. A truly private marketplace as opposed to a managed
marketplace can be cultivated one action at a time.
Economic Action Alert
Follow the money and monitor the systems unwinding. One of the
reasons I have been so successful in my own life as an investor is that I pay attention to
the power elites capital flows. I ascertain the business cycle and then look to see where
it is that the power elite is headed. I invest where the money is, with the serious money
or ahead of it. (I can tell you from experience that China is one destination from a
regional perspective; commodities, especially silver, are another; and environmental
companies, so-called natural fuels such as bio-diesel is a third area of concentration.)
However, if the system I have described above comes under concerted attack
from information available on the Internet, then those who have created and broadcast
dominant social themes for their own profit will need to revise their methods of
operation. This must surely result in a high-level reconfiguration of globalism and even a
rethinking of the wisdom of internationalism itself. Change is frightening but also offers
opportunities. Since risk is inevitable, we should strive to manage it rather than ignore it.
The Internet is anomalous a mechanism that we have not seen before and one

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that is obviously complicating the business of investing. High Alert suggests a series of
non-technical overlays that may help in generating certain monetary conclusions. The
first overlay, as described in this chapter, is an analysis of the business cycle. The second
focuses on power elite promotions themselves and where cash is moving. The third
considers the collision of these manipulations with the Internet and free-market thinking.
It is this last overlay that is most interesting, given that there is evidence this leg of the
business cycle may last far longer than it did last time, perhaps another 10 or 15 years.
Why make this prediction? Two reasons. First of all, the distortions in the
economy are tremendous, far more severe than in the 1970s, the last time the market
experienced a commodity bull of this sort. The market is currently trying to work off
these distortions but given what has come before, those who expected a rapid
diminution of this part of the business cycle are probably in for a disappointment.
The other reason is that there is considerable evidence that the power elite is not
simply going to let a commodity bull market rage unimpeded. If nothing else, the reader
who has stuck with High Alertthis far must be fairly aware that much of the global elite
power base depends on the generation and manipulation of fiat money. Without the
ability to print dollars and exchange them for goods, the ability of the power elite to
purchase the cooperation and armaments they need to sustain their current globalist
strategy becomes limited. The more the world values commodities, the less leverage fiat
possesses. Thus the power elite almost certainly must attempt to forestall, or at least
diminish, a commodity bull market, just as it did in the 1970s with some success. There
is evidence, some of it mentioned in this book, that it is doing just that via the
manipulation of the price of gold and by attacking economic growth by printing money
and raising interest rates simultaneously. However, this is unlikely to continue without
causing major repercussions in the housing market a situation which could result in
major pressure on the U.S. dollar as foreign investors lose their willingness to support it.
The two factors mentioned above may result in the lengthening of what is
already a powerful and long-running bull market in non-paper assets. As the market
extends its run, the individual investor will want to take a position of high alert more
than ever. This may be, in fact, the most profitable bull market ever for commodities and
also eventually for commodity-oriented stocks and money metals.
Every day it seems there are more analysts calling for gold to climb well past
US$1,000 before this commodity bull market runs its course. The estimates even move
into the range of US$2,000 or even US$3,000 an ounce. Whether mining stocks catch fire
as well is still questionable at this point. Certainly mining stocks will come in for more
scrutiny as the bull runs on. It may be this time around, because of demand from India and
China, that mining companies involved in extracting copper, nickel and other industrial
metals may prove the more profitable choice. Yet mining firms concentrating on gold and

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silver have historically proved profitable toward the end of a commodity surge.
One way of hedging, to ensure that a portfolio takes advantage of whatever
commodities are in demand, is too look for well run firms that participate in mineral
extraction across the board. One does not have to look abroad to find these firms, for
there are many with great track records and managerial competence in both the United
States and Canada especially Canada.
Find one of these firms with a broad portfolio of metals prospects, and you will
be in the fortunate position of participating in what I have previously called the teetertotter approach to mining sector selection. In a soft or hard hyperinflationary
environment, mining companies with gold and silver prospects will prove most
lucrative to the average shareholder. But if for some reason, the promotional plans of
the power elite are maintained and the economic juggling act continued then the
same company can generate considerable profits in industrial metals such as copper
and nickel. Either way, the investor is covered and gains are made.
How do we analyze what is occurring? Via VESTS, as has been suggested in this
chapter. Consider subscribing to free-market oriented news services and newsletters
focused on sociopolitical and economic discourses (see page 257 for a list of websites that
may offer such publications, including my personal favorite, FMNN). These analyses
should help the free-market thinker and investor ascertain whether or not a tipping
pointis occurring, and its direction as well. If enough free-market thinkers, informed by
the Net, seek an honest-money economic system, then the current financial
environment will inevitably crumble. If the impact of the Net is muffled or if censorship
is effective in stilling the Nets more informative voices, then it is possible the dollars
ruinous inflation will be worked out in other ways.
Perhaps the investment with the most promise may be silver a malleable,
portable metal with vast industrial uses and yet popular appeal as the peoples money
throughout the ages. Silver usually rises and falls in a ratio with gold, but the ratio as of
this writing is clearly unbalanced in silvers favor. Were both gold and silver to start to rise
quickly in price, silver would eventually rise more quickly, were the ratio to return.
Wayne Gretzky was not a big man for a hockey player, yet is considered by
many to be the greatest ever. When asked about his unlikely success, he used to say
succinctly that he skated to the open ice. Average investors with modest portfolios can
leverage their success similarly. In the 2000s, silver is the open ice of commodities
investing and those who are not yet skating in that direction should rearrange their
portfolio to do so. Chapter 12 will focus more closely on investment opportunities
including the value of promotion itself in creating and expanding investment
opportunities.

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12
Sociopolitical and economic solutions to money power problems.

PROFIT FROM THE FINANCIAL HURRICANE

Gold and silver are not just precious metals, they are money metals, valuable
utilized as currency throughout history. Despite efforts to reduce the allure of gold
and silver by banning the use of precious metals as currency, the two historical money
metals continue to be in great demand as investments through mutual funds, stocks and
as bullion and non-circulating minted coins.
April 2004, FMNN brochure
High Alert
This chapter presents a summary of its Storm Warning segments, along with a
summary of its Economic Action Alerts. It also offers a separate summary focused on
why ownership of precious metals in some form is so necessary in an age of high alert.
It does not summarize the VESTS system, the conclusion of which can be found in the
final chapter.
The Problem, Again
This is a good time to make clear that the problems afflicting Western
economies especially the United States have little to do with people being lazy or
slothful or saving too little, spending too much, etc. The problems facing us are
apparently engineered constructed by those who have knowingly created a bad
system because of the benefits it offers to a very few at the top. Government-sponsored
fiat-money systems, especially when combined with fractional-reserve banking, present
excellent opportunities for a handful of people running affairs to become staggeringly
wealthy. But for many of the rest who must suffer under these monetary regimes, the
consequences are dismal.

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Despite the talk of rosy numbers, of deficits coming down and jobs being
created, citizens of the West, especially in America, face an uncertain outlook and a
challenging future. Many Americans live from paycheck to paycheck highly
leveraged and bereft of any honest money. They are overwhelmingly exposed to
whatever it is that those who are the most powerful believe appropriate or profitable to
themselves in the sociopolitical or economic arena.
The current system is not salvageable. It is entropic, prone to decay. Central
banks have to print more and more money to keep up with the spending of the
politicians who, in turn, spend more and more to buy the favor of increasingly
disaffected voters. Fiat money devalues more and more quickly, and the printing
presses run day and night. Prosperity is just around the corner but never arrives and, in
fact, recedes despite official pronouncements to the contrary.
The productivity isnt there any longer, yet in America, certainly more than
Europe as of this writing, the average household is loaded to the eyeballs in debt and is
still urged to take on more. Why? Because foreign buyers continue to purchase
American debt, allowing U.S. citizens, even if they dont know it, to fund their lifestyles
at least in part with overseas loans. Who could blame the Chinese for trying to unload
some of its dollar reserves by buying resource companies that help to ensure they have
enough control over their own productive destiny?
As the currency devalues, the American middle class will be squeezed even
harder. The public sector will continue to swell, just as it has overseas. The money and
credit in the system continue to expand until the volume simply cant be contained by
economic activity. It becomes overwhelming triggering hyperinflation and sweeping
revaluations. Today, this very scenario is taking place and tomorrow, as the financial
hurricane bears down, it will be even worse.
Again, these results are predictable. Anyone who studies money knows how
government fiat-money systems end up. History tells us they always collapse. And we
are facing a collapse now.
Global money power has high-jacked the productivity of America as surely as
it did in Asia during the Asian Contagion and then, afterward, in South American
countries. It is unfortunate that government-backed fiat-money systems can function
effectively for fairly long intervals while hiding the ongoing internal rot. When fiat melts
down, and it can do so rapidly, the results are very sad for those caught up in the crisis.
The hypothetical suddenly becomes real, and causes material suffering to whole
countries. Just as one must weather the storm before sailing into calm seas, the West in
general and the United States in particular must likely suffer variations of a not-too-distant
fate as the consequences of the inflation, even hyperinflation, gradually settle into place.

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Co n s p i r at i
These are shapeshifters that can take either human or reptilian form. Its all holographic
trickery because everything, including the body, is a hologram and not solid as it
appears to be... . Only the [shapeshifter] bloodline gets into the Skull and Bones Society.
... Readers of my books will understand the significance of this..
Interview with leading Illuminati researcher
AboveTopSecret.com

Further Destabilization Via the Net

As mentioned above, the collapse of the post-World War II economic system is
probably something the power elite anticipated but perhaps the rise of the Internet
is not. The Internet is an extremely complex issue for those who seek to move the
society toward a more globalist path. What is surprising is that much of the
informational power struggle is not being covered in any significant way. It is as if the
Reformation were proceeding without anyone commenting. This alone is indicative of
the amount of discipline and control that still exists within the mainstream media and
its news organs many of which can be counted on to report whats on the surface
without ever peering beneath.
How is the game played? GATAs Bill Murphy complains the mainstream media
picks up on his points about the power elites conspiracy to dampen the price of gold but
never goes any further. No calls are made to large Wall Street firms, to the Fed or to other
central banks. GATAs charges are reported flatly, factually, and the subject is dropped.
Thus the open conspiracy maintains the illusion of a free press by reporting on
charges without investigating them. It is perhaps more effective these days than merely
attempting to kill the messenger with the conspiracy label.
Ultimately, neither the power elite nor the mainstream media are going to be
able to hold back the onrushing tide of information. The Net is generating a critical mass
of questions some from the left or right and many from a free-market point of view.
More and more is being pieced together about the way the world really works.
Storm Warnings a Summary
The Fed withdraws the M3 inflation number from public viewing a
historical first, which potentially destabilizes an already unstable economic situation in
the United States and abroad.
The velocity of money increases and the threat of a real, hard
hyperinflation looms.

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The sociopolitical confrontation intensifies while the globalist agenda

pushes forward at a dangerous pace.
Middle East violence intensifies, perhaps producing another full-scale war
as part of a larger, political and economic confrontation.
Competition for control of the Internet intensifies the Net continues to
win the battle for the eyes, ears and minds of users.
The West enters a time of increased stress and change both sociopolitically and economically, especially in the United States.
Market volatility increases the result of the exposure of a massive goldrigging plot.
The regionalization of nation-states and centralization of power moves
forward yielding oppression not efficiency.
U.S. federal power consolidates further gradually reducing whats left of
the American republic.
The petro-dollar continues its demise with countries such as China, which
holds $1 trillion worth of U.S. Treasuries, continuing to sell off.
The promotion falls apart as the alternative Internet press continues to
expose the global power elites secretive money-mechanism.
Challenges and Solutions
The Anglosphere is in turmoil. The Western world, generally, is faced with the
kinds of economic adjustments that only come once in several generations.
Centralization of state power, increased profligacy of government spending, currency
devaluation, war and violence in various global hot spots, especially the Middle East,
efforts at increased information control this is indeed the Fabian way, from chaos to
control. Each element of mass disturbance moves humankind in the preferred
globalist direction.
History, as we have seen, is clear that these are the mechanisms and levers of
social change. Carroll Quigley has explained it to us, Colonel House has apparently
confirmed it in his secret memo to the British prime minister, and the current U.S.
administration is run, at least in part, by so-called neocons whose think tanks mission
and white papers give voice to the same sorts of strategies.
For you and me, the above difficulties present a serious but not impossible
challenge. Most people do not want trouble, and most people do not revel in
violence, seek it out, or use it as a tool. Most people, seeing what the future holds,
merely want to anticipate difficulties in time and find the right coping strategies.
Unfortunately, if we believe Maslow, only about 2% of the population is fully aware
of what the problems are and even fewer (the subset of free-market thinkers) will

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actually apply human action to implement appropriate coping strategies, even if

they come across them.
It is, nonetheless, one of the main purposes of this book to explain not only the
sociopolitical and economic problems faced early in the 21st century, but the solutions
too. There are certainly steps that can be taken to ameliorate the worst of the challenges
that lie ahead. Below is a list of such steps condensed from the Economic Action Alerts
presented at the end of each chapter.
Just as the Storm Warning list may have provided a better sense of the
difficulties ahead, so this list of action alerts is intended to provide the beginnings of a
practical strategy of protection. Practiced together, they may provide an inoculation
against troubles to come.
Economic Action Alerts A Summary
Knowledge is the key to wealth as individual issues begin to become clear,
courses of action may be appropriately considered.
Purchase precious metals to counteract the lack of transparency regarding
inflation as hyperinflation moves toward reality, the leverage afforded by silver- and
gold-based investments will also become more valuable. Mining stocks will become
quite extraordinary investments toward the end of a commodity bull run.
Monitor the global power elite for power is in the hands of many who are
not evident on any world stage. You may well find that the power elite makes a habit of
buying silver and gold even though the public face of the power elite is negative about
such money metals. You will almost certainly find that the global power elite owns
property in several countries, not just one.
Take possession of at least some assets via physical delivery creating a
new currency is hard work. Given a change of this magnitude, if the global power elite is
truly serious about delivering it, as Joan Veon believes it is, one wants to be holding
money metals, especially silver. Physical delivery is a plus.
Watch out for a media-induced collapse of the stock market and for an
increased level of Internet-oriented investment opportunities. From a competition
standpoint, the Internet is winning the battle for the eyes, ears and minds of viewers,
certainly in the West and especially in the United States, where most of the 100 million
or more blogs and bloggers are supposedly located even if their readers span the
globe. Take advantage of what savvy billionaire investors such as Rupert Murdoch see:
opportunity to participate on the ground floor with the new breed media players.
A commitment to honest economic education is part of becoming a freemarket thinker unlike two percenters in general, who are focused on becoming the
best they can be but are not necessarily interested in fully understanding the world

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around them. Free-market thinkers intend to find out all they can about their
environment. They take human action to live as independently and forthrightly as
possible. They understand that depending on programs, economic or otherwise,
supposedly set up for their benefit, places them in a position of childish dependence.
Put enough time and effort into sociopolitical and economic analysis to
reach a determination as to where you stand on these issues times are changing. If
it ever gets to the point where there is public debate on the issues discussed in this book
about the sociopolitical and economic manipulations practiced by the power elite, the
power elite will lose. Any honest explanation will ensure the systems downfall.
Consider EU investments, but not if the political union threatens to
overwhelm the positive benefits of currency fusion given that the EUs support is
very shallow. We can see from the rejection of the European constitution that while the
citizens of the EU recognize the empowering effects of one currency, it does not follow that
they aspire to the freedom-stifling impact of a single political system. If and when the
political unions regulatory mechanism overpowers the benefits of the economic union,
the EU will cease to be an investment target or a relevant source of positive returns.
Look for signs that the onrushing wave of U.S. federal power has crested
and that redistributionist policies are waning. Inevitably, because of the economic law of
marginal utility, government spending is inefficient and tends to inject even more


Co n s p i r at i
Lord William Rees-Mogg, a life peer in the House of Lords and a former editor-inchief of the London Times, has written that the world is moving into a postindustrial Third Wave' paradigm. [This] will see the erosion of nation-states, and
their replacement by a form of one-world electronic feudalism. In Rees-Mogg's
Brave New World, only 5% of the population, the cognitive elite or what he calls
the Brain Lords, will prosper and enjoy the fruits of modern technology. The vast
majority of peoples of the world are doomed to a life of misery. To prevent social
unrest under these brutal conditions, the British financier oligarchy has gone to
great lengths, since the Kennedy assassination, to foster a drug-rock-sex
counterculture, that creates, in the words of Aldous Huxley, a concentration
camp of the mind. From the ranks of that counterculture, Prince Philip, his World
Wildlife Fund have recruited a radical environmentalist movement, a neo-pagan
gang like the Hitler Youth of the 1920s.
1997 post at The American Almanac,
The Largest Empire In the History of the World

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distortions into the economy. The more fusion that occurs, the more unitary power the
current administration is able to command, the more difficulty the American
experiment will experience.
Precious metals and overseas equity investments are appropriate
consider them during a time of the U.S. dollars decay and possible destruction. If the
Feds history is any indication, the dollars demise is an eventual certainty. American
investors will then choose between various other options to park dollars and in the
2000s, precious metals should be chief among them along, perhaps, with overseas
investments of various sorts.
Monitor the unwinding of the Age of Promotion as those who have
controlled dominant social themes for their own profit revise their methods of
operation. This must surely result in a high-level reconfiguration of globalism and even
a rethinking of the wisdom of internationalism itself. Change is frightening but also
offers opportunities. We should strive to manage it rather than ignore it.
21st Century Investment Solutions
In the above Economic Action Alerts, what comes through clearly is that there
must be a commitment to self-education and watchfulness as to the reactions of the power
elite. But several of the action alerts refer to honest money and the need to understand what
money is and to configure your portfolio so you own both gold and silver.
The rest of this chapter will concentrate on specific economic and financial
issues with an emphasis on hard-money solutions. The larger discussion of the power
elite and the ramifications of the Internet are most important in terms of building a
valid 21st century frame of reference. But the acquisition of honest money in varying
forms is an important insurance element in the event of a soft or hard hyperinflation or
in the case of social breakdowns or government economic interference.
Few grew wealthy in the 1970s buying blue chips and the same may be said of
the 2000s. This is the decade of the commodities bull. Money that is not necessary for
other purposes might well be aimed in the direction of metals, raw and precious, and
almost any other tangible thing, with the exception of some real estate that might be
seen to sop up the excess inflation that the Fed is pouring into the economy.
In perhaps 80 years, the greenback has lost substantially all of its purchasing
power and whatever remains is rapidly being dissipated in pursuit of overseas wars and
domestic welfare giveaways. Let gold and silver coins circulate side by side with fiat
dollars for a single year as they did for 100 years after the founding of the republic
to see what demand there is and how such coins will be valued against fiat.
The conclusion is not open to question: People will seek to hold money metals
of choice rather than the Feds ever-eroding fiat dollars. No one knows for certain what

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the future holds, but when it comes to money and monetary issues, certain educated
guesses can be made. Fiat money will continue to erode in the United States and
around the world until some trigger, be it lack of confidence or merely the entropy of
the system itself, will cause a crisis. Of course the time frame for these monetary
disasters can be compressed or expanded and therefore such disasters can occur
quickly or can be drawn out. In either case, the result is the same.
As fiat money erodes, so do living standards. People find it increasingly difficult
to provide the basic essentials. Eventually civil society itself begins to break down as
people grow increasingly desperate. While it is very clear what the ultimate fate of fiatmoney regimes must be especially as the Internet continues to undermine the Age
of Promotion the timing is never easy to predict.
Whether fiat currency collapses entirely in our lifetime or not, understanding
the mechanics of honest money is of paramount importance to any free-market
thinker. Physical gold and silver are a necessary part of a persons or familys portfolio;
gold and silver will continue to rise in value as government-backed paper money
lurches from one crisis to another, constantly eroding in value.
Rates Continue to Rise?
As of this writing, many so-called experts expect the rate increases by
the Federal Reserve to slow during the summer and fall of 2006. This is probably
wishful thinking. Just the sheer amount of media coverage of Fed Chairman Ben
Bernankes bias toward money creation might lead one to assume that the Fed
will move as it has traditionally moved in the opposite direction.
While Bernanke may favor endless floods of money, the same
mechanism will be responsible for a continued hike in short-term interest rates
as well, and eventually these probably will move, as they have in the past, well
past the point of pain. The last serious round of rate hikes occurred during the
time of former Fed Chairman Paul Volcker in the 1970s. One increase at a time,
rates crept up. Eventually 20% came into view and the result was an inevitable
recession.
Actually, depression might not have been out of context in terms of what
ultimately occurred, though it was certainly compressed, wedged between 1980
and 1981, extremely difficult years, providing challenges for both North and South,
the developed and developing. Financial challenges always spill over national
boundaries. Job creation was at a low, foreclosures at a high, and the U.S. economy
and equity markets sputtered. Even commercial center banks came close to
default as a result of Central and South American loans.
Over the last two years, as rates started upward, low-interest variable

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rate mortgages suddenly hove into view. These were pounced on inevitably
receiving unfortunate, abundant, enthusiastic patronage. And the result was
predictable, too. Today, both delinquency and foreclosure are moving up.
Estimates are that nearly $1 trillion in these adjustable rate mortgages (ARMs)
will be ready for a reset over the next 12-plus months.
If the specter of broad-base consumer mortgage defaults is not bad
enough, how about the problem of credit card debt? Just as the early ARMs
predict the early sufferers, so high credit card debt predicts additional weakness.
The profile is simple and includes a leveraged home, ARM cash flow difficulties
and excessive credit card debt. Add higher credit card rates to higher house
payments and a still inflating dollar, and the recipe for an engulfing wave of U.S.
bankruptcies is feasible in the longer or shorter term, one that may well rival or
exceed those of the 1970s.
Popular Precious Metals
Rate rises, fiat erosion, understated inflation reports no wonder more
are becoming aware of gold and silver and seeking to buy it on the dips. These
precious metals have already proved themselves the best investment bets of the
first decade of the 2000s, with gold being gobbled up rapidly, despite price
swings. And professional investors seem to be finding it increasingly difficult to
refute the arguments of GATA that gold should eventually go over US$2,000, and
perhaps much higher before the latest commodity bull runs its course.
And then theres silver. If you think the worlds insatiable industrial
demand for silver is a big deal, watch what happens when the crowd shows up in
a desperate panic trying to salvage something real from their artificially
inflated lifestyle. Having studied both markets exhaustively, I feel that the times
are bright for both money metals, but I actually give the edge to silver there
just isnt much of it around and theres always more annual industrial demand
than new annual production.
There are those who believe the time is now for both gold and silver to
re-emerge as actual honest money, primarily because of the publics growing
awareness of the fraud thats been perpetrated against them as regards their
paper money substitutes. This is certainly a possibility. FMNN commentator and
free-market thinker Richard M. Ebeling who runs the prestigious Foundation
for Economic Education (FEE) is most aware of how much power precious
metals gain as paper currencies decline. This is excerpted from Dollars on Sale,
30% Off, posted to FMNN in May 2006.

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If you own paper-assets denominated in dollars (cash, stocks or

bonds) sell them and wait for the dollar to crash before going back
to owning dollar assets. The dollar could fall 20 to 30% before there
is a material improvement in the trade deficit. You should, instead,
consider owning real assets: Gold, silver, other precious metals and
commodities, come to mind. For investors who prefer being in cash,
its not easy but it is possible to open up a foreign currency account.
Everbank even offers foreign currency CDs insured by the FDIC, and
there is a new, short-dollar currency fund offered by RYDEX Funds
that offers a 2% increase in value for every 1% the dollar goes down.

Precious Metals Points to Ponder

Precious metals are anonymous: Physical gold is as anonymous as a
banknote, but without the depreciation as is silver. Most paper currencies that
ever existed have been inflated out of existence. Even the very few that have
survived 100 or more years have seen most value eroded by the printing of
paper money, or the inflation of the money supply. Rising prices, known as
inflation, are a symptom of the inflation of the money supply. In times when
inflation is high, or is expected to be high, because it is rising, people seek
protection through holding real assets rather than fiat money, which can be
printed ad infinitum. History is littered with examples of currencies that have
collapsed in hyperinflation. Gold and silver are real assets that can never be
printed by any government. The demand for precious metals rises in
inflationary times, pushing up their prices.
National crises makes metals more attractive: In times of national
crises wars, civil or financial emergencies, etc. people fear that their assets
may be confiscated, looted or seized. Paper becomes suspect and silver or gold,
especially coins, become increasingly valuable; even when fiat fails, a gold or
silver coin will always buy bread or transportation. Are people nervous
currently? According to the World Gold Council, gold demand rose 29% in the
first half of 2005. The increase came mainly from ETFs (Gold Funds), but also
from jewelry. Gold demand was at an all-time record. Demand from the
electronics industry is rising by 11% a year, jewelry by 19%, and industrial and
dental by 21%.
Increasing high-tech demand for precious metals: Both gold and
silver are still used today in jewelry and ever-more intensively in high-tech
industries with silver emerging as the increasingly more popular of the two
primarily because China and Indias gigantic manufacturing industries have

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E l i t e R e t r eat
FMNN recently covered the surprising New York Times feature bashing gold miners. Its
thesis is that open-pit minings use of cyanide to separate out gold from tons of crushed
rock and earth constitutes a form of dirty gold, poisoning indigenous communities
against their will. Resource Investors Pitpundit Blog reported on a PBS/Frontline
program accompanying the New York Times story, one that blasts giant Newmont Mines,
among others, for its industrial practices. The magazine also mentions the radical
environmental group Earthworks whose site prominently features a link to No Dirty
Gold. The President and CEO of Earthworks is himself from Greenpeace. A prominent
member of the board of directors of Earthworks is Michael E. Conroy who turns out to be
the program officer for the Rockefeller Brothers Fund. A quick crosscheck shows that
fully ONE THIRD of the names of No Dirty Gold Campaign Allies would seem to have
received Rockefeller Brothers bequests in the 2000s. These include Greenpeace and
various Friends of the Earth No Dirty Gold Campaign allies. Free-market observers
who believe in gold are not at all downcast by this concerted attack on the gold-mining
industry, citing it as a buying signal. ... The rhetorical question posed by free-market
thinkers: Do you think any of this would be happening if the price of gold was headed
down? ... Even more plainly: It could be the mother of all buy signals.
FMNN, October 2005

been gobbling up the worlds supply of silver. Applications involve millions of

units of production of high priced goods in which the per-unit value of silver
might be on average 20 to 30 cents. The price of silver could easily triple or more
without even affecting the wholesale and retail prices of these electronic goods
that rely on silver for their unique conductivity characteristics.
Silver wins? Gold and silver are very popular with a lot of people
because of their place as real money. And this book, to some extent, has
concentrated on gold to explain the evolution of the monetary system, fiat
money and the decline of honest money. But silver may be an even more
attractive precious metal than gold during an era of high alert. Silver is still in
relatively short supply, and if and when a financial hurricane hits the West,
especially America, it will be silver that the 98 percenters turn to because that
will be all their meager savings will allow them to buy. Silver has been seen as
desirable by many of the worlds savviest investors including Warren Buffet, Bill
Gates and George Soros all of whom have bought a good deal of it in the last
decade. A case for considerably higher silver prices has been made persuasively

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by such noted silver experts as David Morgan.

Copper too: Copper was about 70 cents a pound three years ago and it
is over US$3 as of this writing. Commodities follow precious metals. When gold
and silver are up, often copper, palladium, zinc and others are up as well.
Junior Mining Equity
Promise of junior mining stocks: For those who want the most leverage
during a commodities boom such as the one now taking place, an investment in mining
stocks may be appropriate.
Not all juniors equal: When it comes to selecting mining stocks, a
prudent assessment must be made of the companys management, prospects and
strategic positioning. Consult a broker with experience in precious metals and
mining stocks before making a choice. Hard-money sites such as FMNN, where
information may be gleaned about mining stocks through articles, TV programs
and advertisements, may prove useful as well. Savvy investors who hold
strategically chosen positions in junior mining stocks may reap enormous profits
over the next several years, and do so while the majority of those around them are
being financially decimated.
Is there an ideal junior? What attributes would it possess? Such a company
should have a focused, disciplined strategy and a proven track record. Ideally, it should
have a portfolio of properties with identified ore bodies in regions where there have
been significant discoveries and preferably large operating mines still in production.
This is most important. Any positive geological success has the possibility of
generating tremendous widespread investor interest because the region is already
known to many. After that, the ideal junior would offer proven reserves and a
strategy for efficiently exploiting those reserves below market prices.
The companys skilled, experienced management will have acquired
properties in a country with a stable sociopolitical climate. The region will not have
seen the application of widespread, modern mining methods, but will have a proven
history of mining and will only recently have been opened to direct foreign
investment.
Free-market thinkers will pay close attention to the struggle between the
private sector and populist governments for control over assets. South America and Asia
are becoming more difficult places in which to do business. Bolivia, Mongolia and
Venezuela to name a few have all sought to repatriate natural resources, and other
countries threaten to follow. The more risk that is associated with a region or property,
the more alert and competent management must be as regards to the increased
challenge of doing business in developing regions.

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In the latter 2000s, and beyond, management of lesser capitalized mining

companies will need to focus the assets of the firm on a very few promising properties,
preferably in a single locale. The companys management can then attempt to ensure
that it has laid a proper political and economic base one that will result in a successful
conclusion rather than, say, an unexpected confiscation.
The available pool of countries where one can safely mine has been shrinking
dramatically in the 2000s. Thus, location plays an evermore important role in the ability
of a company to succeed and reward its shareholders. While many regions around the
world are all but tapped out,a slew of new opportunities for gold and silver mining may
be waiting in the wings in such places (despite the current epidemic of confiscations)
as Argentina, Peru, Brazil, Chile and Colombia in South America Finland, Norway and
Sweden in Northern Europe. It could also be that countries such as Russia and China will
lead the way in the 2000s from a commodities standpoint, with China providing the
consumption and Russia providing the raw materials. Visionary mining management
able to capture such a trend and then promote business and mining savvy to the
public-at-large will be the ones rewarded by shareholders.
A teeter-totter approach to capitalizing on mining stocks as they heat up later in
the bull market cycle was mentioned at the end of chapter 10. This teeter-totter approach
should be put into practice in conjunction with companies that are led by experienced
management teams with significant international exposure. When identifying such
companies, or taking advantage of the investment focus identified in this book, the reader
may want to check in regularly with the FMNN Internet news site and also subscribe to
appropriate free-market oriented newsletters.
The Value of Promotion
This chapter has reviewed tangible, realistic steps to take when faced with the
kind of sociopolitical and economic problems thatHigh Alert has profiled. But a freemarket investor will be willing to overlay fundamental and free-market considerations
with yet one more promotional skill. We do indeed live in an age of promotion and
the equity markets around the world, growing in strength even as they are homogenized
and merged, thrive on such activities.
A mining exploration company may be well managed and have a terrific
business niche, but management must have a way of telling its story.If it does not, then
from an equity standpoint that company may not do as well as one that is less viable as
a business but better promoted." If a company does not emphasize public relations, if
its materials and website are second rate, if management does not seem to understand
the necessity for promotion in the Age of Promotion, then even good performance will
not add to the companys value. This is especially true in mining stocks where only one

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company in a thousand graduates from hope and promise to actual mining. The odds
are staggering and the amount of money necessary is enormous.
The better the companys management is at letting the world know about the
firms progress, the more liquidity the company is likely to gain from banks and
investors.
Personal Responsibility Take It
No one but the individual himself or herself can make decisions on how to
confront the upcoming conflict between money power and the Internet. But freemarket thinkers will certainly be prepared. And those accustomed to looking in the
mirror and taking responsibility will do more than acquire money metals. A domicile
abroad a place to go in a time of mounting distress is an appropriate resource at
such a time. Honest money outside of the country, as well as at home this too can be
seen as desirable during a time of high alert.
Free-market thinking is a perspective that goes beyond a specific investment
choice. It is grounded in responsibility and independence. Understand sociopolitical
and economic realities and then take human action. Make contingency plans. Have a
strategy to confront emergencies and think ahead. If the Internet continues to
hamper promotional activities worldwide, then money power will utilize other means
to sustain extant sociopolitical and economic systems. Gold will no doubt come under
increased attack as the favored method of exchange for terrorists and criminals. Even
extraction techniques will be criticized. The idea, inevitably, will be to find ways to
silence honest money advocates either via threats of incarceration or simply by
painting them as sympathizers of enemies of the West.
In 1933, during the Depression, the U.S. government made it illegal for
Americans to own gold. This was a direct reaction to the publics loss of confidence in
paper money. What might happen this time round? Dont wait to find out. Consider
storing some gold and silver at home, where it can be easily reached. Buy a bag of junk
silver coins with a good deal of wear and tear that have little value to collectors but
can be used in an emergency to pay for lifes essentials. Such silver pieces may provide
the essential elements of survival in a true economic crisis when people cease to trust
government notes. Also consider Swiss-based bullion banks in Zurich that specialize in
purchasing and storing bullion. Many still operate as bullion banks did 200 years ago.
Store some dried food, potable water and even oil and gas. Learn about self-defense, and
how to load and shoot a firearm.
One may hope for the best, but it is prudent to plan for the worst in investing
as in life. Taking personal responsibility is the essence of free-market thinking.

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CONCLUSION

We have to decide whether we want a nation of self-reliant individuals who

improve their own lives by offering needed services to others, or a nation in which
everyone is responsible for everyone else and so the government must control every
aspect of our lives.
Harry Browne
The great financial hurricane has arrived. Hyperinflation, recession,
joblessness and increased wealth disparities are in the offing. Americas middle class
reels under a barrage of Fed moves and resultant stock-market drops.
Simultaneously raising rates while surreptitiously printing money, the Fed seeks to
fund the countrys endless oceans of deficit spending on its elder-care welfare state,
a two-front (as of this writing) war in the Middle East and the endless predatory
spending of internationalist institutions. It succeeds only in aggravating income
disparities and further distorting the economy.
Taxes are higher, inflation verges on soft hyperinflation. The privileges
accorded to a few regarding money and credit are little understood by the majority
of those who live and work under the current system. The 98 percenters are the last
to get it, but when they do, they will be angry. What many of them may eventually
come to see is that as with the hit movie The Matrix, every part of their existence is
not what it seems but is instead, as we have discussed, a kind of promotion in
which their fundamental or core belief structure is manipulated to provide
financial gain for a handful of the super-wealthy. Facilitating these promotions is the
elaborate globalist structure of governance that has been erected in the last century,
a tremendous bureaucratic megaphone, trumpeting problem after problem as

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widely as possible to the billions who need to hear about the latest crisis in order to
direct their capital flows to the correct gilded, gaping pocket.
Its time to pay attention, time to be on high alert. The old order is changing. The
new order may belong to free-market thinkers who understand what is taking place and
are able to position themselves properly to take advantage of it.
What Free-Market Thinkers Know
Free-market thinkers know that many of the most highly touted investments of
the last century will not do today. In fact, being economically literate, they understand
that marginal utility and Says Law preclude much of what was put into place in the 20th
century from working at all in the 21st. It has lasted this long only through a series of
international emergency patches and stopgap measures. The system, or large portions
of it, must fail, especially those having to do with the monetary system.
Free-market thinkers are not averse to taking possession of some of their assets
via physical delivery and dispersing assets in places where they cannot easily be found.
They expect further price rises for precious metals in 2006 and beyond, despite the
volatility.
Free-market thinkers will pay close attention to the messages the Internet is
sending as well as the information they can find on it. The Internet is useful as more than
a kind of glorified encyclopedia or newspaper. It is also a community, airing gripes and
deliberating endlessly on all sorts of sociopolitical and economic issues. In this sense, it
may function as a kind of early warning device, revealing by a change in tone among
bloggers or the conspirati just how serious the economic environment is becoming.
Free-market thinkers understand how the business cycle is influenced and
heightened by central banking policies, and how important it is to understand the
ramifications of those policies. Follow the incessant stimulations of central banks, the
resultant inflations, hyperinflations, disinflations and depressions, in order to determine
the best allocation of assets at a given time.
Free-market thinkers will follow the money the power elites money to
track capital flows and the kind of global promotions that emerged in the 20th century
and are still prevalent today. Remember, American Express was one of the first American
companies to do business in China after Nixon, with the help of Henry Kissinger,
opened the door. Today, China is possessed of what may be the most vibrant economy
in the world. Sure there may be troubles with China, and with choices that have been
made by its officialdom, but an early China investor would have reaped substantial
rewards, just as America Express has. This sort of information should be overlaid with a
knowledge of the business cycle, how it operates and where it is. Of course, this is not
a standard perspective but what was normal for citizens of the West, especially

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Americans, in the 20th century is not what will be normal in the 21st. The Age of
Promotion is not yet over, and the era of High Alert (and the Age of Connectivity) is just
beginning.
In Chinese, the written word for crisis and opportunity is the same. Ready
yourself and your loved ones for change, but do not give in to hopelessness or fear.
Wars subside, governments change and opportunities are most prevalent when the
larger scene seems bleak. Take the time to stand back and internalize the bigger
picture rather than the smaller one. Even on the Net there are plenty of extraordinarily intelligent sociopolitical and economic critics chasing what might be called
conspiratorial ephemera. (Were Jews really gassed in ovens? How much culpability
does the U.S. administration have for 9/11? Did Tony Blair conspire with George W.
Bush to present fake evidence to justify the war in Iraq?) Yes, these issues are both
grave and shocking. But it is vitally important that the chaos-making mechanism
itself is not obscured and that nothing stand in the way of understanding the freemarket solutions within our reach.
Manipulation by a Few
Just as the Gutenberg press helped present and thus expose the age-old
manipulations and corruption of the Roman Catholic Church, so the global power
elite is bound to see its secrets and manipulations increasingly exposed on the Net.
To a degree this is already happening. It is imperative that those with the means,
and understanding to do so, utilize the transparency that the Internet offers. The
system of global promotions, the control of the economy via central banks, its
business-cycle distortion via government-backed fiat money, the lust for power,
obsessive need for secrecy, endless, ruinous conflations of the public purse and
private enterprise all these have increasingly degraded civil society and made it
evermore difficult for the average Westerner to live even a modest existence with
some level of certainty.
What the West should do is elevate those who are impoverished. Instead the
elites argue that Western living standards must degrade further. This is ancient,
Malthusian thinking there is not enough to go around versus free-market, neoclassical thinking (human action and the marketplace will provide a better standard of
living for all).
The most obscene hoax of the 20th century was the cover-up of the immutable
laws of the free market and the lack of application of marginal utility to the modern,
legislative process. Grant the efficacy of marginal utility and the entire regulatory
superstructure comes into doubt as well it should. The Decline of the Westis not the
fault of the free market. The number one reason for the catastrophe now making its

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visitation is that the definition of the problem has been obscured, manipulated,
purposefully so.
The global corporations behind the current internationalism are no more
involved in a free market than politicians in their pay. What is emerging in the United
States, and around the world, unfortunately, is a kind of corporatism akin to that which
was admittedly with far more brutality imposed on Germany between world wars.
Such a system would not have worked then and will not work now.
Bigger is not better. Complexity does not guarantee utility. Private/public
partnerships are empowering only for those with direct access to the funding stream.
The emergent system of governance removes responsibility but not the beneficiaries. As
ubiquitous as global promotions might be, these do not ameliorate other aspects of
money-power facilitated globalization.
Contrast this with the Internet itself, which holds the promise of
communicating enough information so that people will start to realize some of what is
going on and demand a say in it. The 21st century, with its freer flow of information,
will no doubt see further abuses of power and bloody interludes. But it also offers hope
that as free-market thinkers become more prevalent and vocal, society will become more
transparent and the power elite more responsive.
More VESTS
Too much evidence exists, unfortunately, to turn away from what is obviously
true as was stated in the thesis at the beginning of this book. A visible power elite,
challenged by the Internet, is causing increasing problems for the global economy as it
struggles to implement its agenda.
To counteract the fallout from this struggle, High Alert has suggested certain
defensive strategies including an original strategy called VESTS. We discussed VESTS at
some length in chapter 11. Below we attempt to sum up the process along with reasons
to use it and why the system should give the interested free-market thinker the
wherewithal to confront the elite-sponsored financial hurricane that is now upon us.
The VESTS system is ultimately a frame of reference as is High Alert generally.
High Alert has done its best to provide free-market thinkers with an orderly
presentation of the ideas and vocabulary necessary for life success what may be called
the Age of Interconnectivity. VESTS gives the free-market thinker a way to respond to the
various problems that High Alert has predicted. More than that, VESTS provides a
framework for response, albeit a generalized one, to these issues as they arise. Use the
various components overlays of VESTS such as a compass, to provide a direction
when faced with the difficult passage of the later 2000s, and beyond.
Business Cycle Analysis This is the first and fundamental overlay of the

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R ea l i t y B y t e : e l i t e r e t r eat s um ma ry
Inflation moving up: Greenspan says we don't have inflation yet every chart tells a
different story.
Dinl.net, March 2004
Hyperinflationary forecast: We are now embarked on a hyperinflationary depression.
FinancialSense.com, September 2005
Free-trade pact opposition: The closeness and fierceness of the CAFTA battle points to the
growing opposition to these free trade pacts. Momentum is swinging our way.
JBS.org, June 2005
Iraq war unpopularity: 70% of Americans think ... gains have come at an "unacceptable"
cost in military casualties.
WashingtonPost.com, December 2006
Gold prices up: The more this suppression of the gold price is made known, the more
countries and big financial interests will want to own gold.
Bill Murphy GATA Presentation, GATA.org, June 2006
EU disarray: Blair accused Chirac of arrogantly refusing to learn the lessons of France's no
vote on the E.U. constitution.
Compilation, FreeInternetPress.com, June 2005
Latin America dissatisfaction with managed trade: Revolts against free-trade pacts
among the citizens of Latin America are on the rise.
Leo W. Gerard, International President, United Steelworkers, USWA.org, May 2005
Fed without monetary indicators: The Fed has no way of knowing how much money the
economy needs. Exchanges between Dr. Ron Paul and Alan Greenspan, February 2000
Media mogul predicts Internet triumph: Murdoch has forecast a gloomy future for
newspapers with the growth of the internet. Media.Guardian.co.uk, November, 2005
Internet supports free-market: Nearly half a million Misesian [cites] are rocketing around
cyberspace.
FMNN, June 2005
Bilderbergs upset by scrutiny: Just before the 2006 Bilderberg meeting in Ottawa,
Canada, alternative Net reporter Alex Jones was detained at the border. FMNN, 2006
Gold bashing good for price prospects: FMNN recently covered the surprising New York
Times feature bashing gold miners. The parties involved know the yellow metal is
headed up; they want to force it higher quickly via a crisis that demands immediate and
ongoing regulatory intervention.
FMNN, Anthony Wile, October 2005

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E n d - of -B o ok C ha p t e r S um ma ry
Emphasis below on the anti-free-market moves of the power elite that, in the Age of
Interconnectivity, may provide an investment opportunity via application of VESTS
investment analysis.
Mismanagement: Chapters 1 and 2 dealt with the power elite mismanagement of the
economy resulting in the impending financial hurricane.
Global ambitions: Chapter 3 summarized the workings of the visible power elite with an
emphasis on the Anglosphere.
Use of war: Chapter 4 focused on the manipulation of violence.
Control of money: Chapter 5 dealt with the banking industry and its historical
manipulation by the power elite.
Diminishment of freedom: Chapter 6 showed the sociopolitical and economic conditions
under which freedom expanded and also focused on the growing domination of money
power in Europe through the EU.
U.S. takeover: Chapter 7 presented the power elites growing influence in America, while
Chapter 8 focused on its banking influence.
Challenges to control: Chapters 9 and 10 proposed that the Internet and a growing cadre
of free-market thinking two percenters were challenging control of the flow of information
and globalization.
Promotional strategies worldwide: Chapter 11 proposed the worlds global infrastructure
was designed to support the promotional messaging of modern money power.
Strategies to counteract: Chapter 12 provided an action summary of solutions to the
economic and sociopolitical crises caused by the collision of the Internet and the power
elite.
Conclusion: Restatement of the problem, free-market thinking and the VESTS system.

VESTS system. By analyzing various publicly available data and news items, a fairly good,
if generalized, sense of an economys position can be ascertained. Again, the analysis
should account for the differing cycles in various nations and regions of the world as
well as the relative monetary stimulation to which the economy in question has been
subject.
The next overlay seeks to analyze money power promotions and money flows.
This demands not only an appropriate perspective but also identification of a vehicle. An
individual might have been aware of the funds pouring into China during the 1990s, but

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the ability to place his or her own funds in that part of the world would have been
proscribed by lack of appropriate alternatives. Today, that is not the case. The Chinese
stock market and various international funds, including private funds, offer
opportunities, albeit high risk.
The final overlay in the three-part VESTS strategy has to do with analyzing how
the Internet and the free-market are colliding with global elite promotions and thus
assessing the viability of such promotions. Adam Smiths invisible hand is no less
powerful for not being opaque. The free market inevitably throws up hurdles to the kind
of vast command-and-control enterprises that the visible power elite contemplates or
has put into effect with the formation of the EU, for instance. Over time, human action
may erode control and invalidates command-and-control procedures, and this process
could well be abetted by the Internet. Intelligent, aggressive people with no outlet for
their creativity will turn to undermining the system. Those involved in its enforcement
will eventually internalize its bankruptcy and cease support. This is what the utilizer of
VESTS needs to internalize that the free market is intrinsically hostile to large,
bureaucratic shops because price points tend to diminish, then vanish. Once this occurs,
the market itself must inevitably fail. Work is disrupted. Food ceases to be shipped where
it is needed. Basic resources go untended.
Price calculations, or the difficulty of them, form a major part of the VESTS
analysis. Free-market thinking based on the inevitability of price calculations can prove
enlightening when it comes to analyzing the potential for success inherent in certain
power elite plans. As the Internet provides more such free-market thinking, the number
of what High Alert has called two percenters may swell as well. Percentages may rise to
three, four, five even 10 or 20. In truth, even five or seven or 10% might be enough to
initiate a real change in the way the power elite does or does not do business. Again,
the idea of using Maslows two percenter theory was to illustrate how difficult it is to
grasp and act on the concepts within High Alert. The more who can join what Maslow
believed was two percent,the better especially if they evolve into free-market thinkers.
Retreat of Money Power?
This book has taken, as its thesis, a conflict between the visible power elite and
the Net which is seemingly revealing strategies of control that served better in the
20th century. It would be nice to think that the power elite, having realized the nature of
this unexpected communication device, would decide to be open about its plans and
allow the average citizen a formal say in its strategies. Alas, this is not the way the elite
operates. Yet it would seem there are certain changes in power elite behavior. As
mentioned earlier in this book, it took some 50 years to design a European Union and
even then its constitution was defeated. Recently, the CFR issued a white paper

< 242 >

trumpeting an American union with Canada and Mexico a startlingly

presumptuous and rash call-to-action given the caution with which the European
Union was approached. Americans are not happy about Mexican immigration and
Canadians seem to appreciate neither nationality. The simplest explanation is panic
causing various miscalculations. What before was fairly hidden and crafty, looks
obvious, even ill-conceived, and certainly badly implemented in the Age of
Connectivity.
Is the visible global power elite in some disarray because of the Internet?
Throughout High Alert,media observations tracked what seems to be an elite retreat
on certain issues. The elite even presented a glimpse of what must be a growing
frustration by temporarily detaining alternative media Net reporter Alex Jones at the
Canadian border, en route to cover a secretive Bilderberger conference in Ottawa. Other
areas where the elite seems to be on the defensive: The U.N.s oil-for-food scandal, global
warming where an increasingly vocal anti-global-warming minority is making its
presence heard, and in the area of generally controlling free-market information.
No winner will ever fully emerge from the age-old struggle between money
power and the citizenry. Yet communication devices developed in the last half
millennium the Gutenberg press and the Internet in particular seem to be having
a qualitatively different impact on the social order than that which came before. No one
can foretell the future in any detail human action sees to that but it is possible to
extrapolate general trends. The betting here, as stated previously, is that the quality and
quantity of information on the Net will have a lasting effect on the generations now
gaining access to it. And this impact will translate into a freer society with more
opportunity, less bureaucracy and perhaps even a devolution of sociopolitical and
economic control. It has apparently happened at least once before. How we get from
here to there or even if we do is not yet clear. But it should be obvious to readers
that a start has been made and a trend likely established.
The power elites vision of the world is surely dysfunctional, based on everlarger and more corrupt bureaucracies generating evermore ruinous regulatory codes
aimed at an increasingly restive, if not rebellious, population. This book has in large part,
dealt with modern money power from an investment standpoint, but the reality is that
much of what is necessary for modern money power to survive involves the potential
increased militarization , social and economic chaos, even bloodshed.
Ways of building happier, more prosperous societies do exist via a focus on
social constructs that trigger peoples intimate rather than impersonal (confrontational) communal preferences. Human action,the ability to create a universe of ones own
choosing within the larger context is the easiest, fastest way to freedom and prosperity.
Adjudication of individual-versus-communal-rights should take place privately

< 243 >

without government interference wherever possible.

If one accepts the reality of the power elite and its anti-free market
manipulations, then much that has occurred in the last century was unnecessary up
to and including a good deal of 20th century warfare. If this is the case, it only makes
sense that every modern instrumentality should be employed to see that the 21st
century does not repeat the 20th. The Internet is certainly a viable tool in this regard. But
even more powerful than the Internet is an understanding of free-market thinking and
the individuals power to change the course of human events, large and small. Over and
over, great art and great insights have come from those raised in the humblest
environments. Physical beauty, great wealth, an impressive pedigree, these are
wonderful attributes, yet may count for little when totalling up the value of a lifetime.
Understand, please, that High Alert is an attitude but its benefits can be manifold.

Vi s i bl e E l i t e S u p e r T e n de nc i e s S t r at e gy ( V E ST S )
p ow e r e l i t e p r om o t io n s & m o n e y-p ow e r man i pu l at io n

Power elite promotions

via dominant social themes
from elite-controlled governments,
foundations, religious entities,
mainstream media groups, etc.


Monetary stimulus and
inflation via Federal Reserve,
World Bank, International
Monetary Fund, other central
banks, etc.

business
c yc l e

INVESTMENT ZONE
CONFLICT BETWEEN MONEY POWER
PROMOTIONS AND FREE-MARKET THINKING
Analyze the collision between elite promotions and freemarket thinking to ascertain investment opportunities

CONFLICT

Power elite
promotions analyzed
ongoing success questionable
Internet exposes money
power and monetary
manipulation; increases
percentage who understand
the power elite dynamic

OPPORTUNITY

Honest Money (gold & silver)

retained as prudent investors
prepare for financial storm

f r e e-ma r k e t t h i n k i n g

Growing audience of
free market thinkers
employs human action
to prepare for and profit
from monetary crises

f r e e-ma r k e t ana ly s i s & t h e b u s i n e s s c yc l e


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Some FMN N Free-Market Thinkers

Jim Babka, Downsize DC, funnels timely e-mails to congressmen to help defeat
federal boondoggles and anti-freedom legislation including attacks on the Internet.
Babka is popularizing laissez-faire-oriented ideas through the new thinking of the
Downsize DC Foundation and DownsizeDC.org of which he is president. He was the
press secretary for Harry Browne's 2000 campaign for president when Browne was the
Libertarian Party [LP] nominee. Previously, Babka was the state chair of the Libertarian
Party of Ohio. The Foundation itself was Perry Willis's brain-child; Harry Browne devoted
his talent and resources to co-found the organization; in January 2003, Steve Dasbach
joined to bolster the Foundation's management arm as special advisor to the president.
William Bonner, Agora Publishing, runs one of the world's most successful
consumer newsletter publishing companies, focused on hard-money and free markets.
Bonner, founder and president of Agora also publishes a free daily e-mail, The Daily
Reckoning, which reaches millions. In 1979, he began publishing International Living and
Hulbert's Financial Digest. Since then, Agora has grown to include dozens of newsletters
focusing on finance, health and travel. Bonner is the author, with Addison Wiggin, of the
New York Times Business best-seller Financial Reckoning Day: Surviving The Soft
Depression of The 21st Century (John Wiley & Sons, New York, London).
Harry Browne, (deceased) who wrote best-selling books and launched popular,
free-market campaigns for the U.S. presidency, reached millions with practical advice on
how to be free in an unfree world. In his lifetime, Harry Browne wrote 12 books, selling
more than two million copies. In 1996 and 2000 he was the nominee of the Libertarian
Party for president of the United States. Browne was little known in the investment world
when his first book, How You Can Profit from the Coming Devaluation, was published in
1970. This was only the first of a number of Harry Browne bestsellers. In late 1994, Browne
announced his Libertarian candidacy for president and received 485,759 votes on Election
Day, the second highest total in Libertarian Party history. In 2000, he was again nominated
to represent the Libertarian Party and garnered more than 382,000 votes, despite a tight

< 245 >

race between the two major parties.

Dr. Richard M. Ebeling, who discovered the lost papers of the famous Austrian
economist, Ludwig von Mises, in a formerly secret archive in Moscow, Russia and is now
supervising their translation, runs the prestigious Foundation for Economic Education
(FEE). Ebeling was the Ludwig von Mises Professor of Economics at Hillsdale College in
Hillsdale, Michigan (1988-2003), and also served as the vice president of the Future of
Freedom Foundation (1989-2003). In 1996, Ebeling and his wife, Anna, discovered the lost
papers of the famous Austrian economist, Ludwig von Mises. Looted by the Nazis from
Mises's Vienna apartment in 1938, the papers had been confiscated by the Soviet Army at
the end of the second World War.
Edward G. Griffin, documentary film maker, founder of the successful freemarket sites RealityZone.com and Freedom-Force.org, is the author of the definitive book
on the Federal Reserve, The Creature from Jekyll Island named after the island where the
Federal Reserve system was planned. Griffin is a recipient of the coveted Telly Award for
excellence in television production, a contributing editor to The New American magazine
and president of American Media, a publishing and video production company in
Southern California.
Marshall Fritz, founder of the Alliance for the Separation of School and State,
has reached millions with the increasingly influential message that education must be
removed from government control and reprivatized. Fritz founded his Alliance for the
Separation of School & State in Fresno, Calif., in 1994 to promote Honest Education a
concept similar to honest money. He is the publisher of The Education Liberator, The
School Liberator, and the lead author of the Proclamation for the Separation of School and
State.
Pat Gorman, a hard-money strategist who has helped individuals solve the
problem of fiat money and inflation throughout his career, believes that precious
metals are the ultimate store of value, and that paper money inevitably loses value since
more of it is always printed than needed. Gorman writes a regular newsletter and has
written numerous articles about hard money and has appeared on TV as well. For the last
13 years, he has also run his own radio talk show in Phoenix, Ariz., called Hard Money Watch.
His talk show has been rated in the top five radio talk shows in Phoenix for the last 10 1/2
years.
Richard J. Maybury, newsletter editor and author whose sociopolitical and
economic analyses emphasize free markets and show how death and destruction flow
from the state spends a good deal of time studying the behavior of governments,
military activities and how they affect investments. Inventor of the Chaostan model,
Maybury's U.S. & World Early Warning Report (EWR) is the first and only publication to
specialize in reporting about it. The economic model employed is the free-market
Austrian school of Nobel laureate Frederick Hayek, who influenced Ronald Reagan and
former British Prime Minister Margaret Thatcher. The political and legal model is the
Natural Law of Thomas Jefferson, James Madison and the other founding fathers. He has
written a series of 11 internationally best-selling Uncle Eric books for eighth grade and up

< 246 >

on economics from a hard-money, free-market point of view.

David. Morgan, honest-money publisher, whose analyses, over time, have made
millions aware of the opportunity to protect investments via precious metals purchases,
especially silver. Late in the 1990s, Morgan founded a Web site, Silver-Investor.com, and
began publishing his popular newsletter, The Morgan Report with a strong emphasis on
the benefits silver can bring to those looking to prepare for and profit from the financial
hurricane of the 2000s. The newsletter also covers free market-oriented investing
generally. Many regard Morgan as the leading independent, silver analyst in North
America. He has been a keynote speaker at the Silver Institute and appeared at investment
conferences throughout the world. He is the author of Riding the Silver Bull and The
Skinny on Silver.
William (Bill) Murphy, grass-roots, educational campaigner via GATA, exposed
the powerful Wall Street and Federal Reserve forces manipulating gold and silver and
laid the groundwork for the current boom. The Gold Anti-Trust Action Committee (GATA)
was founded in January 1999 to advocate and undertake litigation against illegal collusion
to control the price and supply of certain financial securities, particularly securities
involving gold. GATA's focus on gold manipulation may have weakened the international
banking cartel and thrown its money metals manipulation into disarray. In that case,
GATA and Murphy can be said to have aided in the return to prominence of money metals
and the eventual downfall of the government-backed paper money system.
Bernard von NotHaus, founder of the Liberty Dollar, distributes his successful
money to users throughout the United States. Von NotHaus one of the world's
foremost experts on private currencies and alternative economics retired after 25 years
as the mintmaster at the Royal Hawaiian Mint and began a new lifes work introducing the
Liberty Dollar into circulation in America and throughout the world. The Liberty Dollar is
a currency that competes in the marketplace with Federal Reserve Notes.
Dr. Ron Paul (R-Texas), congressman, defends the historical meaning of the
Constitution in his position as a principled member of the U.S. Congress. Author,
statesman and Libertarian candidate for president, Paul is a leading defender of free
markets, sound money and strong families. He is the founder of two educational
organizations: the Foundation for Rational Economics and Education (FREE) and the
National Endowment for Liberty. He is also a distinguished counselor to the Ludwig von
Mises Institute and a trustee of the Foundation For Economic Education.
Dr. Lawrence Parks, founder of FAME, conducts a national campaign about the
benefits of returning the United States, and ultimately the rest of the world, to an honest
monetary standard. Only 100 years ago, the world thrived on a so-called gold standard
in which gold pieces (coins) were exchanged worldwide for goods and services. Today, the
world operates on a fiat money or paper standard. Parks, the executive director of the
Foundation for the Advancement of Monetary Education (FAME), is a leading proponent
of honest-money economics.
Lew Rockwell, founder and president of the Mises Institute, and vice president
of the Center for Libertarian Studies, is an opponent of the central state, its wars and its

< 247 >

socialism. He is also editor of six books on free-market economics and arguably the most
influential free-market scholar and activist of his day. Rockwells most recent books are
The Irrepressible Rothbard and Speaking of Liberty. His Web site, LewRockwell.com,
highlights the news and commentary that he finds important, or simply interesting.
Dr. Helen Szamuely, founder of a popular anti- EU referendum blog, exposes the
real power-agenda of the EU and helped lay the groundwork for the rejection of its flawed
constitution. Unlike many Western intellectuals who seemingly always find parts of
socialist or communist systems commendable, Szamuely has no such illusions. Born in the
Soviet Union, she attended school in Hungary, Ghana and Britain. Her childhood and
geographically-varied education provided her with the frame of reference that many of
her peers lack and helped her reject the soft socialism of the U.K.s upper classes. The EU
referendum Web site she started with colleague Richard North has helped set the standard
for anti-EU scholarship and aided immeasurably in exposing the European Union as the
corrupt centralized, bureaucratized, unified pan-European state that it really is.

< 248 >

A F T E RWOR D

We exist in a real world, and test our understanding against that

reality every day. The more our model corresponds to reality, the better off
we are when making monetary prognostications or even organizing our
private and family lives so that we are enriched instead of impoverished, and
our loved ones are properly looked after.
So how have we done? This afterword is intended as an evaluation.
Let me begin by restating High Alerts core concept: That a visible
power elite challenged by the Internet causes increased problems for the
global economy as it struggles to implement its agenda of increased global
control over a range of human endeavor. Of course, if you have read this far
you already realize it does not matter who it is (the power elite), only that
we can make an accurate analysis of what is occurring and how, at the very
least, the two percenters among us can protect themselves against the
increasing depredations.
Lets briefly summarize what was going on when this book was
written and initially published in the summer of 2006. At the time, the stock
market was up, inflation was tame, the American war in Iraq was
deteriorating - but was not yet as obviously hopeless as it is today - and the
price of money metals was relatively high, but not yet as high as High Alert
predicted they might go.
Whats happening as I write this nearly two years later? All across the
world, currencies are collapsing in a proverbial race to the bottom as
inflation has continued its rise whether or not you believe the official

< 249>

figures, you simply need to look at prices so gold and silver have risen too.
Meanwhile, aggravating the situation, the Wests fixation on the war in Iraq
has given way to bellicose U.S. warnings against Iran, the next target in what
is shaping up to be a three-front American war.
The Federal Reserve has embarked on an unprecedented course to
bail out failing Wall Street concerns such as Bear Stearns. Powerful officials
are speaking out on behalf of giving the Fed increased powers to regulate the
financial industry including and the real-estate industry. Stock markets
around the world gyrate up and down as the Fed and other Western central
banks attempt to pump enough fiat money into the system to keep it afloat.
Of course, every printed dollar merely increases the rate of inflation, just as
High Alert predicted.
History of a Collapse
It all began quite suddenly in the summer of 07 with the subprime
housing crisis - not the result of unforeseen circumstances but the
predictable result of central banking policy. As High Alert points out,
Western central banks printed too much money and offered too much credit
throughout the 90s indeed throughout the late 20th century and early 21st
- and economies around the world first roared to life and then found the
boom quite unsustainable. Resources went awry, sectors expanded needlessly
and eventually, just as free-market economics predicted the crunch came,
the boom went bust and the results will be with us for a terribly long time, no
matter what the pundits say.
As a result of the collapsing sub-prime sector, the American dollar,
which has been the reserve currency of the world, has begun to lose its
primacy. Foreigners are rapidly losing interest in holding the U.S. dollar as of
this writing, as the lowest common denominator sub-prime domestic
creditors - are failing. Without them its hopeless. In America, where the
weakness first appeared, the Federal Reserve snapped the whip across the
backs of all the sub-prime domestic dollar borrowers as they ratcheted up
rates that was until September 18th 2007. A date that shall forever be
marked as an official turning point in Americas reign as the reserve currency
of the world.
When the Fed bankers subsequently lowered interest rates by 50 basis
points to 4 3/4s percent, they clearly sent a message that they were willing to
sacrifice the dollar and let it devalue knowing full well that foreign creditors
would bail out. The result? As High Alert predicted would happen

< 250 >

eventually, gold began to run. Over the next couple of days, the yellow metal
hit a 28 year high breaking through the $750 barrier on the December
futures contract and then running all the way to $1,000 and beyond before
declining.
A few days later the loonie, the Canadian dollar shot up and soon
reached parity with the American dollar for the first time in 31 years, capping
a 62% rise from its low in 2002. The Euro, a currency that really is nothing to
write home about either being comprised of a bunch of high-cost, lowproducing nations with major socialist problems benefited as well from the
structural failings of the U.S. dollar, rising to record heights.
Meanwhile, there was yet another attack on the dollar coming as
Asian nations, China in particular, decided that enough was enough. A
recent trip to Zurich, yielded information from one trader with a leading
Swiss bank that he was personally handling some transfer business on
behalf of the Chinese as they moved out of dollars and into gold as well as
other foreign currency.
The Chinese have also apparently created a $200 billion super fund
with the intention of quietly unloading some of the trillion-plus of
devaluing dollars that they hold. The targets? Natural resources and
companies involved with finding, developing and processing them.
Can you blame the Chinese? Maybe not today, but give the power
elite a couple of more years to spin the story around and the mainstream
media an opportunity to work their magic and you will observe the 98
percenters numbly agreeing that the Chinese, just like the Muslims, are the
reason for Americas terrible economic chaos.
The power elite needs chaos, wars and destruction. Without them,
the machinations become too obvious. Yet, for any serious observer, the
coincidences are simply too numerous. Iraq, for instance, began to reprice oil
in other currencies such as the euro and gold just before it was attacked by
George W. Bushs administration. As of this writing, Iran is doing the same
thing with its bourse, and the war drums in the West are beating once more.
How many Americans actually know what they or their children have
been sent over to the Middle East to fight for? The determination to ensure
that the world continues to buy oil in dollars? I wonder how they will feel
when they finally realize it a day that will eventually come as the Internet
continues to inform users about the truth.
But in the meantime, the game will play out. The power elite have
already moved on to greener pastures China and India in particular. They

< 251 >

are already eyeing Africa as well no surprise. As High Alert has pointed
out, throughout, the power elite deals in promotions Bird Flu, Green Energy,
Islamofascism. The idea is to whip up the population, make it fearful, and
then pose a solution which can be promoted on the stock market as a
massively profitable anodyne.
Of course, eventually, part of the process, eventually, involves the
bankrupting of the countries involved. Without invasive taxes and central
banking, the population cannot be made malleable enough for the
promotions that will provide the coup de gras. So many countries have ended
up in critical condition as a result of power elite machinations and
promotions: Korea, Burma, Thailand, Indonesia, Argentina, Brazil, Chile, even
Mexico. Now it is the turn of the West, America in particular. Of course it
happened to Austria and Germany, but that was long ago. America, with its
republican traditions and allegiance (still) to free markets is still the big prize.
Crush the American culture and economy once and for all and global
governance awaits!
It is important to cover ones tracks as well, by the way. The damage
must appear effortless and easy, the economic implosion as unstoppable as
any natural occurrence. Perhaps that is why the Wests most prominent 20th
century central banker Alan Greenspan has chosen to release a book that
seemingly absolves him of any wrongdoing if he says so himself. He may
have played a part in the current injuries, the book tells us, but he had the
best of intentions and, besides, was unaware of the serious problems that
were building in the credit markets. It is all too much for one man, of course,
even an indispensable one, but none seem to discover that until after they
have vacated office.
Who is Greenspan kidding in this day and age the age of the Internet
when every fact is just a mouse-click away? Yes, he used to preach honest
money, but that was before he served as a corporate director for J.P. Morgan
& Co. and numerous other corporations such as Capital Cities/ABC, Inc.,
Mobil Corporation and General Foods, Inc. while being groomed for his
ultimate role as Fed Chairman. As chairman, he directly oversaw the largest
creation of paper money the world has witnessed since the hyperinflationary
downfall of the Weimar republic a scenario that could very easily happen
again this time in America. It would be laughable to think of Mr. Greenspan
as an innocent were it not so serious an issue.
And what about the so-called North American Union? Wait a minute,
didnt George W. Bush announce recently that it did not exist - so why does it

< 252 >

continue to be built? In fact, since High Alert was published, knowledge of

the NAUs transcontinental superhighway and what it portends has
exploded exponentially across the Internet. High Alerts NAU timeline was
even used as an inspiration for Canadas leading anti-North American Union
website. (They still cite the book as a source.)
Confronted with pushback as regards one of its plans or
promotions, the power elite famously denies and dissembles while
continuing to forge ahead nonetheless. In the case of the NAU, one outcome
of the American dollar devaluation is that American and Canadian financial
services firms can merge without impediment. While U.S. companies were
always limited in terms of how much penetration they could make in
Canada, it apparently works better the other way around. In this case, laden
with loonies, Canadas largest banks are quickly heading south to gobble up
their American counterparts. Yes, a new day is dawning, featuring North
American super-money conglomerates thanks to the demise of the dollar
and the rise of the loonie. Its all a coincidence of course!
What about bird flu. As I mentioned in High Alert, perhaps the Net
had already sidelined that fear campaign, but I still wouldnt discount the
over eager supporters of neat eugenic solutions (were talking of the Nazi
variety, folks) such as those wonderful members of the Club of Rome and
various vocal environmental groups whose idea of population control seems
to include a touch of genocide.
The Unraveling Will Continue
Youve read High Alert and youve read this afterword. Truth is a
slippery concept, but the point of High Alert and this, too, is to emphasize
that there are large, subtle and enormously powerful forces out there that
could not care less about you or your family.
Get out of debt. Transfer out of U.S. dollars get gold and silver. Get
a (fully declared) overseas bank account with a large Swiss bank and hold
your funds in other currencies that are benefiting from the dollars demise.
Do it now. The bottom line is that currency controls have already
started. How much money can you walk into a bank and get on a moments
notice? Not much perhaps a couple of thousand or none as Britains
Northern Rock (Britains fifth biggest mortgage provider) customers found
out. How much money can you take out on your ATM card each day - $500
a 1,000 if you are lucky. Why should you be handcuffed when it comes to
your own money? The answer: They cant afford to let you have it.

< 253 >

Become an information junkie. High Alert has given you a thorough

grounding in a realistic paradigm. Now subscribe to Net based news services
such as FMNN and free-market oriented newsletters. They can help you add
to your store of knowledge while recognizing warning signs along the way.
Buy a Book Or Several
When the last edition of High Alert was released nearly a year ago,
its price accurately reflected the currency balance of the time. The book was
priced at EU$24.95 and US$29.95. Now look on the back cover. Less than a year
has passed and the U.S. price is US$35.95. If you live in America today, you
might want to buy several copies, as you may not be able to afford them in
the future.
If you do, pass them around. There are not many financial books that
make sense from cover to cover as plenty of readers have commented that
this one does - and still fewer that have proven as accurate. Thats something
to be proud of, sure, but its not the really important point.
Heres the real point: High Alert was written partially to expand the
number of people who get it from two percent, to three or four. If you share
High Alert with others - and encourage the purchase of more copies as well,
if you choose - then perhaps that goal can be achieved.
The more who understand, the less effective power elite promotions
will be, and the more power the real free market will have. One day perhaps
we will all live without the shadow of these terrible promotions and our
children will be healthier, happier and more hopeful as a result.
It is my hope that High Alert will help to make it so.
Anthony Wile,
Vancouver,
Summer, 2008

< 254 >

SELECTED NOTES & WEB REFERENCES

Authors note
Carl Menger, Principles of Economics, Mises.org
Ludwig von Mises, Human Action, Mises.org
Murray N. Rothbard, Man, Economy and the State, Mises.org

Chapter 1
Resource Investor, What a Difference a Week Makes,ResourceInvestor.com
Murray Rothbard, Great American Depression, Infography.com
Jim Jubak, Fed Kills a Key Inflation Gauge, MoneyCentral.msn.com
Mike Whitney, Doomsday Approaches, Info.Interactivist.net
Peter Schiff, With Real-Estate, This Time It Really Is Different, FMNN.com
Greg Silberman, Will Derivatives Cause This Market To Fail? Gold-Eagle.com

< 255 >

Krassimir Petrov, Ph.D., An Austrian Analysis of U. S. Inflation, FinancialSense.com

Dave Morgan, How to Buy Gold for $252 Per Ounce, 321Gold.com
Ted Butler, A Permanent Shortage Of Silver, Gold-Eagle.com
Harry Browne, Why I am Obsessed with War, HarryBrowne.org
Chapter 2
Richard Daughty, Economic Newsletter, FMNN.com
Lyndon H. LaRouche Jr., Monetary Collapse by September 2006, LaRouchePub.com

Chapter 3
Eric Jon Phelps, Vatican Assassins, VaticanAssassins.org
Interview with Benny Morris, Israeli historian, CounterPunch.org
Carroll Quigley, The Anglo-American Establishment, Amazon.com
Carroll Quigley, Tragedy and Hope, Amazon.com
Frank Aydelotte, American Rhodes Scholarships, RhodesIndia.com
John Ruskin, Fors Clavigera, VictorianWeb.org
C. Wright Mills, The Power Elite, Amazon.com
Michael H. Hunt, Ideology and U.S. Foreign Policy, Amazon.com
Edward Mandell House, Philip Dru,Amazon.com
Phyllis Schlafly, The Plan to Integrate the U.S., Mexico and Canada, EagleForum.org
Richard N. Haass, Building a North American Community, CFR.org

< 256 >

Steven Yates, United States of North American, theNewAmerican.com

Patrick M. Wood, Trilaterals Over Washington Volumes I and II, augustreview.com
Terry Hayfield, A Piece of Fabian History Unveiled, ProLiberty.com
Antonio Gramsci, Italian Marxist,, Marxists.org
Universal Declaration of Human Rights, UN.org
Noah Webster, The Occult Theocracy, BibleBelievers.org
Conrad Goeringer, Atheist Society, The Enlightenment, Freemasonry, and The
Illuminati, Atheists.org
Richard M. Ebeling, Dancing with the Devil, Fee.org

Chapter 4
George Orwell, 1984, Online-Literature.com
Ryan McGreal, Iran in the Crosshairs, InformationClearingHouse.info
Randolph Bourne, War Is The Health Of The State, BigEye.com
Michael Meacher, The War on Terrorism Is Bogus, Guardian.co.uk
Khalid Mishal, We Will Not Sell Our People Or Principles For Foreign Aid,
Guardian.co.uk
Lawrence Scheinman, New U.S.-India Agreement Undercuts U.S. Allegiance to
Nonproliferation of Nuclear Weapons, CFR.org
Harvard Laws International Financial Systems symposium, 21st Century Agenda for
China and the United States, Beijing, Law.Harvard.edu

< 257 >

Henry Kissinger, Conflict With China Is Not an Option, ChinaDaily.com

Joan Veon, The Bank for International Settlements Calls for Global Currency,
NewsWithViews.com
William White, The Bank For International Settlements, Mega.nu
Ron Paul (R-Texas), Iran, The Next Neocon Target, FMNN.com
Rixon Stewart, Who Was Albert Pike, TheTruthSeeker.co.uk
Chapter 5
Peak Oil Rouses Prophet, FMNN.com
Richard Maybury, Ancient Rome, How It Affects You Today BlueStockingPress.com
Economist Magazine, Special Report, Economist.com
Chapter 6
TheAmericanAlmanac. The Largest Empire in the History of the World,
Members.Tripod.com
The Executive Intelligence Review, The Venetian Takeover of England,
American_Almanac.Tripod.com
MediaMatters.org, News Outlets Ignored Bush Flip-flop on Oil Reserves,
MediaMatters.org
Edward Griffin, The Creature from Jekyll Island, Amazon.com
Abraham H. Maslow, Maslow On Management, Amazon.com

< 258 >

Chapter 7
Gary North, Money Gold Standards: The Good, the Bad, and the Ugly,
LewRockwell.com
IMF pamphlet, A Global Institution: The IMFs Role at a Glance, IMF.org
James C. Baker, The Bank for International Settlements: Evolution and Evaluation,
John Wiley & Sons; 1 Edition, June 27, 1996.
Bernard von NotHaus, Competition Comes to the Fed, FMNN.com
Chapter 8
Robert LeFevre, The Nature of Man and His Government, Mises.org
William Everdell, The End of Kings, Amazon.com
R. F. Hassing, The Federalist Post-1989, Ashbrook.org
Murray Rothbard, It All Began, as Usual, With the Greeks, LewRockwell.com
Richard Hooker, World Civilizations, My.WSU.edu
Michael ODowd, Freedom Is The Precondition Of Progress,
FreemarketFoundation.com
Amy H. Sturgis, The Rise, Decline, and Reemergence of Classical Liberalism,
Belmont.edu
George F. Kennan, Memoirs. Amazon.com
Helen Szamuely, Who Governs Britain, Eureferendum.blogspot.com

< 259>

Chapter 9
The Unitary Executive: Is The Doctrine Behind the Bush Presidency Consistent with a
Democratic State? Findlaw.com
Col. E. M. House Report 1919, Etherzone.com
Hans Schicht on David Rockefeller, From A Different Prospective, Gold-eagle.com
Will Banyan, The Proud Internationalist, NexusMagazine.com
David Rockefeller, Memoirs, Amazon.com
David Icke, The Law Is An Ass And You Are Made Of Straw, Davidicke.com,
Chapter 10
Richard Ebeling, Money, Central Planning and the State, FFF.org
Christopher Mayer, The Credit Delusion, Gold-Eagle.com
Edward Flaherty, A Brief History of Central Banking in the United States,
FreedomDomain.com
Edward Griffin, Meet Edward Flaherty, Conspiracy Poo-Pooist, Realityzone.com

Chapter 11
Kent Daniel Bentkowski, Kentroversy.com
Web Restriction, Globalresearch.ca.
Bankruptcy, David Icke e-newsletter
Chapter 12
FMNN, Value of Money Metals, Midasresources.com
Richard M. Ebeling, Dollars on Sale, 30% Off,FMNN.com
<260>

We b R e f e r e n c e s
Abebooks.com
AboveTopSecret.com
Amazon.com
AmericanPresidency.org
Answers.com
Anti-state.com
Antiwar.com
Baidu.com
BibleBelievers.org
Cfr.org
ChathamHouse.org.uk
Clubofrome.org
Commondreams.org
Conclusion & Bios
Counterpunch.org
Dinl.net
DownsizeDC.org
Fabian.org.uk
FFF.org
Financialsense.com
FindLaw.com
Freemarketnews.com
FMNN.com
Foreignaffairs.org
Freedomdomain.com
FreedomForce.org
Freeinternetpress.com
FreeMarketFoundation.com
Freemarketnews.com
Freerepublic.com
FrontPageMagazine.com
GATA.org
Globalresearch.ca,
Gold-eagle.com
Google.com

Guardian.co.uk
HiddenAgendas.com
Iht.com/articles
Illuminati-news.com
Investopedia.com
Jbs.org
Kentroversy.com
KFNN.com.
LeMetropoleCafe.com
LewRockwell.com
Media.guardian.co.uk
MediaMatters.org
Mega.nu/amp
Mises.org
Mises.org
Myspace.com
Newswithviews.com
PerfectEconomy.com
PlausibleFutures.com
RealityZone.com
Reason.com
se.ac.uk/collections
Silver-Investor.com
Thenewamerican.com
TheTruthSeeker.com
Trilateral.com
Uncensored.co.nz
USWA.org
Venusproject.com
Vonmises.org
Washingtonpost.com
Whale.to
WorldCivilizations.com
Yahoo.com

< 261 >

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Browne, Harry. How I Found Freedom in an Unfree World. A Handbook for
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Burke, Edmund. Reflections on the Revolution in France, Garden City and New
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Casey, Douglas, Crisis Investing for the Rest of the 90s, New York: Birch Lane
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Cubeddu, Raimondo. Philosophy of the Austrian School, London: Routledge, 1993.

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Maybury, Richard J. The Clipper Ship Strategy for Success in Your Career, Business and
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Orwell, George. Animal Farm, New York: Plume/Penguin Group, 1977.

Paine, Thomas. The Rights of Man, Garden City and New York: Anchor
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Raimondo, Justin. Reclaiming the American Right. The Lost Legacy of the
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Richman, Sheldon. Separating School & State. How to Liberate America's Families,
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Rothbard, Murray N. Economic Thought Before Adam Smith. An Austrian Perspective
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Rothbard, Murray N. Classical Economics. An Austrian Perspective on the History of
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Rothbard, Murray N. For a New Liberty. The Libertarian Manifesto, 3rd rev. ed., San
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Shlaes, Amity. The Greedy Hand. How Taxes Drive Americans Crazy and What to do
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Soloman, Steven. The Confidence Game. How Unelected Central Bankers Are
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Contemporary Books, Inc., 1966.
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White, Lawrence H. Competition and Currency. Essays on Free Banking and Money,
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Wiggin, Addison. The Demise of the Dollar and Why it's Great for Your
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< 265>

INDEX

Achenson, Dean, 62
Adams, John Quincy, 137
adjustable rate mortgages (ARMS), 230
Adorno, Theodor, 67
Advanced Research Projects Agency (ARPA), 171
Afghanistan, 9192
Age of Connectivity, 10, 20
Age of Enlightenment, 126, 131
Age of Promotion, 10, 20, 22, 181, 219, 228, 238
Age of Reason, 126
Agnadello, Battle of, 124
agriculture, 100
Ahmedinejad, Mahmoud, 88, 91
Aldrich, Nelson, 160, 164
Alexander ("the Great"; king, Macedon), 119
alternative 'net media, 1011, 178
American Revolution, 56, 140
Amero (proposed North American currency),
147
Ansari, Masoud, 93
Apple Computers (firm), 172
Aquinas, Thomas (saint), 190
Argentina, 4243, 22324
ARPANET, 171

Asian economic crisis, 4647

Athens (Greece), 11516, 11819
Austrian economics, 13, 189
Aydelotte, Frank, 59
Babka, Jim, 245
Bacon, Francis, 127
Baker, James C., 108
Bank for International Settlements (BIS), 1079,
111
banking
bullion used for, 1034
central banks, 11
First and Second Banks of U.S., 137
government and, 9899
international structures for, 1079
Jefferson on, 155
monetary innovation and, 105
promotions in, 96, 216
See also central banks; Federal Reserve
System
Bank of England, 105, 106, 140, 14244
Bank of Palmstruch, 106
Bank of Sweden, 106

<266>

bankruptcy, of countries, 204

Barbour, Haley, 76
barter, 99100
Barzun, Jaques, 198, 199
Bayan, Will, 145
Bazargan, Mehdi, 89
Behreandt, Dennis, 7879
Beit, Alfred, 59
Ben Gurion, David, 57
Bentkowski, Kent Daniel, 197, 19899
Bernanke, Ben S., 143, 161, 229
Bilderberger Group, 73, 77, 206, 217, 240
bin Laden, Osama, 84
bird flu, 201, 202, 205, 21516
Blair, Tony, 65, 67, 132, 240
Bolivia, 44
Bonaparte, Napoleon, 6061
Bonner, William, 245
Bourne, Randolph, 8384
Bower, Doug, 210
Bretton Woods conference (1944), 142, 144
Breyer, Stephen, 62
Britain, See United Kingdom
British East India Company, 128
British Empire, 117, 123
Browne, Harry, 7, 3334, 49, 236, 24546
Bruno, Giordano, 127
Brzezinski, Zbigniew, 64
Buffet, Warren, 33, 145, 189
buillion banks, 235
Bush, George W., 83
Blair and, 67
commitment to North American
Community by, 63
Council on Foreign Relations and, 65
Declaration of Quebec City signed by, 147
falling popularity of, 28
Iraq war under, 8485, 94
Rather controversy involving, 176
on Strategic Petroleum Reserve, 183

Bush, Jeb, 84
business cycle, 11, 156, 191, 192
analysis of, 217, 23942
Cagan, Philip, 13
Canada
civil libertarianism in, 13435
merged with Mexico and United States,
14551
mineral extraction firms in, 221
in North American Community, 63
Carter, Jimmy, 64, 89
Catherine de Medicis (regent, France), 21415
Catholic Church, 53
Central American Free-Trade Agreement
(CAFTA), 21, 50, 76, 78, 240
passes House vote, 14950
central banking, 104
central banks, 11, 51
conspirati on, 140
creation of money by, 97
Federal Reserve System as, 15556
history of, in United States, 15859
hyperinflation and, 28
inflation and, 15758
as lynchpin of economy, 98
monetary innovation and, 105
Chaney, Dick, 84, 17475
Chapman, David, 32
Charles IX (king, France), 214, 215
Chatham House, 73
Chertoff, Michael, 149
Cheuvreux (French bank), 111
China, 7, 21, 27, 115, 166
Bush administration and, 8890
doing business in, 237
Falung-Gong in, 54
Internet controlled in, 57
investing in, 219
present economy of, 15152

< 267>

under Tang Dynasty, 122

Chirac, Jacques, 68, 76, 132, 240
Chorley, Dave, 210
Christianity, in early U.S. colonies, 71
cities, origins of, 100101
civil libertarianism, 134
Civil War (U.S.), 13638
classical liberalism, 12526
Clinton, Bill, 58, 66, 146, 147, 183
Club of Rome, 73, 7779
codes of honor, 11617
Codex Alimentarius, 212
coins, 1023
gold and silver, 229
Coligny, Gaspard de, 215
commercial banks, 11
Commission on Global Governance, 75
common law, 1112
Conroy, Michael E., 232
conspiracies, definition of, 14647
conspiracism, 12
conspiracy theory
on Jekyll Island meeting, 16061
C. Wright Mills on, 5960
on September eleventh terrorist attacks, 176
conspirati, 23, 30
on bankruptcy of countries, 204
on censorship of Internet, 197
on central banks, 56, 140
on drug-rock-sex counterculture, 227
on First and Second Banks of U.S., 137
on global conspiracy, 64
on Illuminati, 53
on Israel, 57
LaRouche and, 60
on M3 money measurement, 44
on Rothschild family and socialism, 185
on Sarpi and Giovani, 12728
on wars, 8283
Constitution, U.S.

income tax amendment to, 156

sovereignty under, 146, 147
Convention on Persistent Organic Pollutants
(POP), 7778
copper, 233
Corsi, Jerome R., 14749, 151
Council of Florence, 124
Council on Foreign Relations, U.S. (CFR), 59, 72,
140
Fabian Society and, 65
House and, 140
on North American Union, 150
power of, 6263
Rockefeller and, 142
Trilateral Commission and, 64
credit
in creation of inflation, 40
devaluation of money and, 157
credit card debts, 230
currency
Amero, 147
based on precious metals, 1012
coins, 1023
euro, 132, 133
Liberty Dollar, 10910, 158
precious metals as, 222
precious metals versus, 231
Currency Bill (U.S., 1913), See Federal Reserve Act
D'Albernon, Lord, 38
Dante, 124
Daughty, Richard, 37
Davison, Henry, 160
debts, 223
credit card, 230
Declaration of Quebec City (2005), 147
deflation, 42, 46
Delaware, 71, 72
democracy, 11819
Deng Xiao Ping, 88

< 268 >

derivatives, financial, 3233

de Tocqueville, Alexander, 125
devolution of electoral control, 12
Dewey, John, 188
diLorenzo, Thomas J., 13638
disinflation, 46
Disraeli, Benjamin, 123
dollar
as dominant currency, 26, 144
gold and silver coins versus, 229
held by foreign governments, 27
not backed by gold, 34
petrodollars, 83, 166, 225
purchasing power of, 207
strength of, 42
dominant social themes, 12
manipulated by power elite, 19
Donovan, Terry, 172
Dow Jones stock average, 207
Ebeling, Richard M., 23031, 246
economics
business cycle in, 191
free-market, 13, 187, 189, 19092
modern theory of, 189
economy
anticipated crisis in, 2628
internationalism in, 29
education, 188
Einstein, Albert, 18485, 187
elections, devolution of electoral control, 12
eminent domain, 76
empiricism, 127
Engels, Friedrich, 14
England, See United Kingdom
environment, 153
environmental movement, 174, 227
Epicitus, 34
euro (currency), 42, 132, 133
Europe

religion in, 54
unification of, 12932
European Economic Community (EEC), 208
European Union (EU), 115, 129, 13233
Constitution of, rejected, 5051, 130
failure of, 240
history of, 208
on human rights, 70
investments in, 22728
paranoid view of, 203
as super state, 146
Everdell, William, 11718
Fabian Society, 65, 6768, 72
Falung-Gong (China), 54
Fannie Mae, 3233
Farley, Dick, 210
federal government
development of Internet by, 17173
Jefferson on, 136
monetary policies of, 40
overspending by, 31, 35
Federalist Party (U.S.), 137
Federal Reserve Act (U.S., 1913; Currency Bill;
Owen-Glass Act), 51, 156, 157, 160, 163, 165
Federal Reserve Board, 160
Federal Reserve System
under Bernanke, 229
as central bank, 11, 15556
creation of, 51, 62, 138, 15657, 159
current policies of, 2627
dollars printed by, 142
Flaherty on, 160
House and, 140
M3 measurement dropped by, 2930,
3536, 224
money measurements used by, 29
rate increases by, 32
Rockefeller and, 143
von NotHaus on, 110

< 269>

First Bank of United States, 137, 15859

Flaherty, Edward, 15860
Griffin versus, 16065
Ford, Gerald, 45
Fox, Vicente, 63
fractional banking, 104
fractional reserve banking, 104
France, Huguenots in, 21415
Francis II (king, France), 214
Franklin, Benjamin, 56, 71, 105, 140
Freddie Mac, 3233
freedom, 11416
free market, 12
free-market economics, 13, 189
history of, 19092
Free Market News Network, Corp. (FMNN), 7
free-market thinkers, 12, 183, 194, 23738
Freemasonry, 127, 128
Free trade, 154
Free Trade Area of the Americas (FTAA), 78
French Revolution, 60
French Wars of Religion, 215
Fritz, Marshall, 246
Galileo, 127
Gates, Bill, 33, 145, 170
on Internet, 190
as two percenter, 189
geography, 12224
Gerard, Leo W., 154
Germany
public school system founded in, 188
Weimar Republic economy, 3839, 43, 44,
188
Gibbon, Edward, 61
Ginsberg, Ruth Bader, 62
Giovani (Venetian faction), 127, 128
global elite promotions (GEPS), 21718
globalism, 74
globalization, LaRouche on, 6061

global power elite, 4950

global tax, 76
global warming, 201
Goeringer, Conrad, 7072
gold, 96, 23033
bullion banking, 1034
as currency, 222
dollar not tied to, 34
hyperinflation and, 44, 48
illegal to own, 235
as investment, 20, 33
monetary oversupply and, 27
Morgan on, 45
price of, 42, 11012, 220, 240
used for money, 1012
Gold Anti-Trust Action Committee (GATA),
11012, 230
gold mining, 232, 240
gold standard, 96, 98
Greenspan on, 109, 164
Goldwater, Barry, 66
Google, 193
Gorman, Pat, 246
government
of ancient Rome, 120
banking and, 9899
as pillar of power, 51
republican form of, 11516
wars fought by, 8384
See also federal government
Gramsci, Antonio, 67
Great Britain, See United Kingdom
Greece, ancient, `11516, 11823
Greenspan, Alan, 34, 109, 111, 195
M3 money measurement dropped by, 44
Paul and, 16465
on production of money, 189
Rockefeller and, 143
Gretslu, Wayne, 221
Griffin, G. Edward, 7, 51, 66, 67, 246

< 270 >

Flaherty versus, 16065

on Russian Revolution, 139
Group of Eight, 76
Guise family (France), 21415
Guttenberg press, 181, 195
Internet as, 21, 170, 178, 18081
Haass, Richard N., 149
Hamas, 85
Hammell, John C., 79
Hamphill, Robert H., 161
hard hyperinflation, 1314
Harper, Stephen, 63
hate crimes, 197
Hayek, Friedrich A., 40, 192
Hayfield, Terry, 6568
health care, 21216
hedge funds, 47, 60
Hegel, Georg Wilhelm Friedrich, 14, 60
Hersh, Seymour, 88
Hitler, Adolf, 56, 129
Hooker, Richard, 121, 215
Hoover, Herbert, 144
House, Edward Mandell, 62, 13942, 225
housing bubble, 3132
Huguenots (French Protestants), 21415
human rights, 6870
Human Rights Law Resources, 6870
Hunt, Michael H., 61
Hussein, Saddam, 82, 84, 85, 91
Huxley, Aldous, 227
hyperinflation, 18, 4143, 240
hard and soft, 1314
in history, 2728
soft, 28
velocity of money and, 4448
See also inflation
Icke, David, 204
Illuminati, 53, 7071, 77, 85

impersonal communal preferences, 15

income tax, 13839, 142, 156
India, 8587
inflation, 31, 240
central banks and, 15758
debased currency and, 103
defenses of, 37
disinflation and, 46
free-market definition of, 40
hard and soft hyperinflation, 1314
precious metals to counteract, 226
printing money and, 106, 15556
in Weimar Republic economy, 3839
See also hyperinflation
information, as pillar of power, 51, 5658
Internal Revenue Service (IRS), 110
International, 22324
International Bank for Reconstruction and
Development (IBRD), 107
International Criminal Court, 75
International Democratic Union, 68
International Development Association (IDA),
107
internationalism, 29
International Monetary Fund (IMF), 75, 107, 108,
154
Internet, 7, 28, 112, 190, 224
alternative 'net media, 1011
change generated by, 16970
competition for control over, 18081, 225
controlled in China, 57
conventional knowledge challenged by, 189
current state of, 17376
free market supported by, 240
as Guttenberg press, 21
history of, 17173
as information source, 195
investments oriented to, 18182
overlays for, 220
perceptions of money from, 98

< 271 >

power elite challenged by, 1618, 2122

on September eleventh terrorist attacks,
17677
taxation of, 19899
threats to, 196
used by free-market thinkers, 194
Internet 2, 196, 197
intimate communal preferences, 15
investments, 20
commodities as, 221
Internet-oriented, 18182
power elite's capital flows and, 219
precious metals as, 226, 228, 23033
invisible power elite, 23
Iran, 27, 82
next war with, 9192
Pahlavi dynasty in, 8687
public opinion on, 94
U.S. hostages held by, 89
Iraq, 205, 213
Iraq war, 27, 198
opposition to, 240
plans for, 8485
Israel, 5455, 57
September eleventh terrorist attacks and,
202
Supreme Court building in, 80
Italy, 12023
Jackson, Andrew, 156, 159
Jackson, Michael, 193
Jagger, Mick, 67
Jasper, William F., 59, 7778
Jefferson, Thomas, 51, 68, 71, 136, 137, 156, 182
on bankers, 155, 158
John Birch Society, 73, 77
Johnson, Samuel, 118
Jones, Alex, 217, 243
Jubak, Jim, 2930
Judiasm, 5455

Juncker, Jean-Claude, 132

junior mining stocks, 233
Kansas City, 148, 150
Kant, Immanuel, 14
Kennan, George F., 62, 129
Kennedy, John F., 67
Kerry, John F., 183
Keynes, John Maynard, 40, 144, 161, 193
Keyserlingk, R.W., 129
Khomeini, Ruhollah, 87, 9193
King, Alexander, 79
Kirchner, Nestor, 143
Kissinger, Henry, 90, 237
Klein, Peter G., 17173
Kohl, Helmut, 68
Korea, 223
Krock, Walter, 62
LaRouche, Lyndon, 6061, 12122
League of Cambrai, 124
League of Nations, 140, 141
Leicester, Earl of (Robert Dudley), 128
Levant Company (Britain), 128
Libby, Lewis, 84
liberalism, 12526
libertarianism, 116
Liberty Dollar, 10910, 158
Lincoln, Abraham, 13637, 139
Lindbergh, Charles A., Sr., 161
Lippmann, Walter, 62
Lloyd George, David, 140
LoBaido, Anthony C., 67
Locke, John, 125
London School of Economics and Political
Science, 65, 67
Lugar, Richard G., 149
Luther, Martin, 199

< 272 >

M1 money measurement, 29
M2 money measurement, 29
M3 money measurement, 2930
dropped by Federal Reserve System, 3536,
44, 224
Mack, John, 210
Madison, James, 118, 136
Maistre, Count Joseph de, 60
marginal utility, 192
Marlow, Christopher, 119
Martin, Paul, 63
Marx, Karl, 14, 40
Maryland, 75
Maslow, Abraham H., 13, 18386, 225
Maybury, Richard J., 177, 219, 24647
Mayer, Christopher, 158
McFadden, Louis T., 161
McGreal, Ryan, 83
McNamara, Robert Strange, 107
Meacher, Michael, 82, 8485
Menger, Carl, 190, 192
Mexico, 63, 14551
Michelangelo, 124
militarism, origins of, 100101
Miller, Clifton Ray, 79
Millin, Sarah Gertrude, 59
Mills, C. Wright, 5962
mineral extraction stocks, 221
mining stocks, 22021, 221, 233
Mish'al, Khalid, 85
monetary control, 104
money
creation of, 97
devaluation of, 15758
gold and silver used for, 1012
Greenspan on, 109
inflation and printing of, 15556
origins of, 99101
paper, 1034
Morgan, David, 33, 45, 47, 232, 247

Morgan, J.P., 138, 141, 156

Morris, Benny, 57
mortgage rates, 31, 230
Moses, Robert, 15354
Mullins, Eustace, 185
Murdoch, Rupert, 179, 182, 226, 240
Murphy, William (Bill), 224, 247
Nakajima, Hiroshi, 213
Nasdaq, 47, 97, 205
New Jersey, 72
newspaper industry, 18081
New World Order, 30
New York, City of, 144, 15354
Nicholaus of Cusa, 124
Nitze, Paul, 62
Nixon, Richard M., 75, 237
Norman, Montagu, 14142
North America
merging of states in, 14551
as super-region, 209
North American Community, 63
North American Free Community, 75
North American Free Trade Agreement
(NAFTA; 1993), 50, 75, 76, 147
superhighway for, 148, 150, 15051, 15354
North American Security Cooperative Act
(NASCA), 149
North American Union, 14751, 209
O'Connor, Sandra Day, 62
O'Dowd, Michael, 12225
oil prices, 203
Orwell, George, 82
Ottoman Empire, 43
Owen-Glass Act (U.S., 1913), See Federal Reserve Act
Pahlavi dynasty (Iran), 8687
Palmstruch, Johan, 106
paper money, 1034

< 273 >

in creation of inflation, 40
hyperinflation and, 2728, 43
Parks, Lawrence, 7, 24748
Parvus, Alexander Helphand, 60
Pastor, Robert, 147
Paul, Ron, 30, 9192, 16465, 212, 247
Pennsylvania, 72
Pericles, 120
Perkins, John, 74, 96
personal responsibility, 23435
Peters, Alan, 89
petrodollars, 83, 166, 225
Petrov, Krassimir, 33
Philadelphia (Pennsylvania), 158
Philip (prince, England), 227
Pickering, Timothy, 137
Pike, Albert, 85
pollution, 153
Pound, Ezra, 185
Pouzzner, Daniel, 13031
power elite, 14, 1617, 30, 5051
challenged by Internet, 2122, 169, 17476,
181
Council on Foreign Relations in, 6263
exposure of promotional mechanism of,
216
global, 4950
inflation and, 156
information used by, 5658
internationalism of, 146
Internet and, 190
Mills on, 5962
promotions by, 205
religion used by, 5355
Rockefeller and, 14243
in United States, 6667
precious metals, 7, 23033
as currency, 222
currency based on, 1012
hyperinflation and, 48

as investments, 20, 33, 16667, 226, 228

monetary oversupply and, 27
prices of, 42
pricing of, 98
See also gold; silver
President of U.S.
Federal Reserve System Board of Governors
appointed by, 161
powers of, 134
Prince of Wales International Leaders' Forum, 75
printing, history of, 172
Project for the New American Century
(PNAC), 197
promotions, 96, 199201, 203, 216
global elite promotions, 21718
paranoid view of, 202, 203
value of, 234
Protestant Reformation, 198, 199
public education, 188
public-private partnerships (PPPs), 75, 76
Puplava, James, 31, 48
Quigley, Carroll, 5859, 6566, 7273, 141
on Bank for International Settlements,
1078
on history, 225
on Montague Norman, 142
Rand, Ayn, 109, 187
Rand Corporation, 171
Rather, Dan, 176
rationalism, 12628
Reagan, Ronald, 89, 147
Rees-Mogg, Lord William, 227
religion
in early U.S. colonies, 71
as pillar of power, 51, 5355
rejected during Age of Enlightenment, 131
Renaissance, 121
republican form of government, 11518

< 274 >

Reserve Bank of Australia, 111

Rhodes, Cecil, 59, 72
Rhodes, William, 143
Rhodes Scholarships, 59, 14041
Rio de Janeiro Earth Summit (1992), 75
Ritsema, Scott, 150
Rockefeller, David, 64, 66, 14245
Rockefeller, Laurence, 210
Rockwell, Lew, 248
Roman Catholic Church, 7071, 16869
printing press and, 181
Protestant Reformation and, 198, 199
Rome, ancient, 116, 117, 120, 177
Rosett, Claudia, 213
Rosicrucianism, 128
Rothbard, Murray, 96, 141
on ancient Greece, 11920
on Federal Reserve System, 155
on human action, 192
on hyperinflation, 28
on natural rights, 68
on Adam Smith, 190
Rothschild, Lord, 59
Rothschild family, 80, 105, 140, 185
Round Table Groups, 5859
Rubin, Robert, 47
Rumsfield, Donald H., 84, 94, 196, 202
Ruskin, John, 59
Russia, 27
Russian Revolution, 139
Russo, Aaron, 79
St. Bartholomew Massacre (France), 215
Sarpi, Paoli, 127, 128
Say, Jean Baptiste, 190
Say's Law, 19092
Scheinman, Lawarence, 8586
Schicht, Hans, 14245
Schiff, Peter, 32
Schiller, Friedrich, 119

Schlafly, Phylis, 6263, 14547, 150

Schmitt, Carl, 60, 61
Scholastics (school of thought), 190
Schrder, Gerhard, 132
science fiction, 170
Second Bank of United States, 137, 159
Securities and Exchange Commission (SEC),
206
Security and Prosperity Partnership of North
America (SPPNA), 148, 209
self-actualization, 13
September eleventh terrorist attacks, 2122, 54,
93
Internet and, 17677
paranoid view of, 202
Shakespeare, William, 90, 91, 119
Shaw, George Bernard, 65
Shirky, Clay, 199
Silberman, Greg, 3233
silver, 96, 98, 23033
bullion banking, 1034
as currency, 222
hyperinflation and, 48
as investment, 20, 33, 219, 221
monetary oversupply and, 27
price of, 42, 112
purchased by prominent investors, 189
used for money, 1012
Simmons, Matthew, 203
Skousen, Joel, 54
Skull Bones Order, 30
slavery, 138
Smith, Adam, 190, 242
Smythe, Thomas, 128
socialism, 13031
of Fabian Society, 65
Rothschild family and, 185
von Mises on, 117
Socrates, 124
soft hyperinflation, 1314, 28, 31

< 275 >

Soros, George, 33, 45, 112, 145

as two percenter, 189
Sorrell, Sir Martin, 182
South Carolina, 71
Sozzinis, 131
Special Drawing Rights (SDR), 1089
stagflation, 46
stock market
after Civil War, 138
collapse of, 226
crash of 1987 in, 45
Dow Jones stock average of, 207
global, 204
Strategic Petroleum Reserve, 183
Strauss, Leo, 60
Stresemann, Gustav, 39
Strong, Maurice, 78
Sturgis, Amy H., 12526
Sutton, Anthony, 64, 139
Sveriges Riksbank (Bank of Sweden), 106
Sweden, 106
Szamuely, Helen, 12930, 132, 248
Taliban, 9192
Tancredo, Tom, 151
taxation
of bandwidth and e-mail, 19899
in China, 152
global tax, 76
income tax, 13839, 142, 156
terrorism, war on, 135, 202
terrorists, 197
thesis and antithesis, 1415
Thompson, Paul, 176
trade agreements, 50
trading communities, 100
Trans-Texas Corridor (TTC), 148, 150, 151, 209
Trilateral Commission, 6465, 72, 142
Trotsky, Leon, 60, 65, 139
Turkey Company (Britain), 128

Turner, Ted, 145

two percenters, 184, 185, 189, 194
UNICEF, 213
unidentified flying objects (UFOs), 210
United Kingdom
banking in, 106
British Empire and, 117
history of banking in, 105
Venetian Giovani in, 128
United Nations, 7576, 114, 195
Convention on Persistent Organic
Pollutants of, 7778
development of central banking and, 107
Internet and, 170
land for donated by Rockefeller, 142
nutrition guidelines of, 212
United States
anticipated economic crisis in, 2628
bankruptcy of, 204
Civil War in, 13738
economic power of, 94
history of central banks in, 15859
history of hyperinflation in, 43
merged with Canada and Mexico, 14551
in North American Community, 63
power elite in, 6667
religion in early colonies, 71
separation of powers in, 116, 134
as voluntary association of states, 136
Universal Declaration of Human Rights, 6870
urbanization, 100
Vanderlip, Frank, 160
velocity of money, 4447, 22425
Venice Company (Britain), 128
Venice (Italy), 119, 121, 123, 124, 127, 128, 196
Veon, Joan, 226
VESTS, see Visible Elite Super Tendencies
Strategy

< 276 >

Virginia, 71
Visible Elite Super Tendencies Strategy
(VESTS), 13, 19, 21618, 221, 23942,
244
as investment strategy, 20
visible power elite, see, power elite
Volcker, Paul, 45, 91, 143, 229
von Mises, Ludwig, 13, 96
Google hits for, 193
on government monetary policy, 40
on human action, 18586, 192
lost papers of, 246
on socialism, 117
von NotHaus, Bernard, 10910, 158, 247

World Summit for Sustainable Development

(2002), 76
World Trade Organization (WTO), 75, 154
China in, 88
World War I, 129
World War II, 129
Xerox (firm), 172
Y2K crisis, 47, 97, 164, 205
Yates, Steven, 58, 63

Warburg, Paul, 160, 165

war on terrorism, 135, 202
wars
Bourne on, 8384
with Iran, 9192
reasons for, 8283
as ultimate weapon, 95
Washington, George, 71
Webb, Beatrice, 65
Webb, Sidney, 65
Webster, Noah, 70
Weimar Republic (Germany), 3839, 43, 44
Weishaupt, Adam, 7072
Whig Party (U.S.), 13637
White, William, 91, 111
Whitney, Mike, 3132
Wile, Anthony, 19
William III (king, England), 106
Williams, Walter, 79
Wilson, Woodrow, 62, 139, 141
Wolfowitz, Paul, 84
Wood, Patrick M., 64, 6667, 108, 109
Wooton, 127
World Bank, 75, 107, 213
World Health Organization (WHO), 212, 213

< 277 >

AU T HOR B IO

Anthony Wile is the founder of Free Market News Network Corp. (FMNN), already one
of the most successful libertarian/hard money informational sites on the worldwide
web. In founding FMNN, Anthony brought more than 12-years' experience consulting
to growth-oriented companies in a variety of sectors but primarily mining companies.
Before consulting and then founding FMNN, he worked in the Canadian investment
industry with Scotia McLeod (Bank of Nova Scotia), and Nesbitt Burns (Bank of
Montreal). He continues to advise and consult to large international banks and money
managers as well as to senior executives at both senior and junior mining firms. A
Certified Investment Manager, he was made a Fellow of the Canadian Securities
Institute in 1994.