By Ron Paul | RPI | October 29, 2018

President Trump recently called the Federal Reserve’s interest rate hikes crazy. Leaving aside President Trump’s specific complaint, which is likely motivated by the belief that low rates will help him win reelection, he is right that “crazy” is a good way to describe the Federal Reserve.

When not forced to use a government-created currency, individuals have historically chosen to use a precious metal such as gold or silver as money. The reasons include that precious metals are durable and their value tends to remain relatively stable over time. A stable currency ensures that prices accurately convey the true value of goods and services.

A main value of a precious metal is it accurately conveys the true price of money, which is the Interest rate. If the interest rate reflects the manipulation of central bankers and not true market conditions, individuals will be unable to properly allocate resources between savings and current consumption.

In contrast to market money, government-created fiat currency is anything but stable. Central banks constantly increase and decrease the money supply in an attempt to control the economy by controlling the interest rates. This causes individuals to misread market conditions, leading to a misallocation of resources. This can create an illusion of prosperity. But eventually reality catches up to the Federal Reserve-created fantasies. When that happens, there is a recession or worse, leading the Fed to start the whole boom-and-bust cycle over again.

When central banks create money, those who first get the new money enjoy an increase in purchasing power before the new money causes a real increase in prices. Those who receive the money first are members of the banking and financial elite. By the time the new money reaches the middle class and working class, inflation has set in, so any gain in purchasing power is more than offset by the increase in inflation. Thus, central banking causes income inequality.




Since the Federal Reserve’s creation in 1913, the dollar has lost most of its value. The steady erosion of the dollar’s value punishes savers and rewards those who seek instant gratification even if it requires piling up massive debts. So the Federal Reserve is at least partially to blame for the rise of a culture that devalues thrift.

The very act of creating money and manipulating interest rates distorts the market. Therefore, the Federal Reserve System cannot be fixed with a “rules-based” monetary policy or even with “tying” the Fed-created money supply to the price of gold. It is amazing how many economists who oppose price controls on all other goods support allowing a secretive central bank to control the price of money.

Trusting the Federal Reserve to produce permanent prosperity instead of a boom-and-bust cycle is a textbook example of a popular definition of insanity being repeating the same action in hope of getting different results. The Federal Reserve System is as unworkable and doomed to failure as every other form of central planning.

It is likely that the next Fed-created recession will come sooner rather than later. This could be the major catastrophe that leads to the end of fiat currency. The only way to avoid crisis is to force Congress to end our monetary madness. The first steps are passing the Audit the Fed bill, allowing people to use alternative currencies, and exempting all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.


Contributed by Ron Paul of Ron Paul Institute

The Ron Paul Institute for Peace and Prosperity is a project of Dr. Paul’s Foundation for Rational Economics and Education (F.R.E.E.), founded in the 1970s as an educational organization. The Institute continues and expands Dr. Paul’s lifetime of public advocacy for a peaceful foreign policy and the protection of civil liberties at home.


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By Michael Snyder | Economic Collapse | October 26, 2018

As the middle class disintegrates and poverty grows, more Americans than ever are becoming dependent on the government just to survive.  Today, we live in a country where most workers do not earn enough to support a middle class family, and we are seeing the homelessness crisis spiral out of control in major cities on both coasts.  During this election cycle, many conservatives have been freaking out that an increasing number of Democrats are openly embracing socialism, but the truth is that we are already most of the way to becoming a socialist country.  In fact, as you will see below, more than half of all Americans currently receive more money from the government than they pay in taxes.  We have become absolutely addicted to government money, and this is one of the major trends that is eating away at our nation like cancer.

The government is not supposed to take care of us from the cradle to the grave.

Rather, our founders understood that the proper role of government is to create and protect an environment of liberty and freedom where we would be empowered to take care of ourselves.

Today, most Americans cannot independently take care of themselves, and that makes them dependents.  And when you are a dependent, you aren’t really free.

One of the reasons why I write so much about the decline of the middle class is because it is an existential threat to our way of life.  If you look around the world, or if you go back through history, you will see that tyrannical regimes tend to thrive when populations are poor and cannot stand up for themselves.  If we want our Republic to survive, we need a strong, independent population that is not economically dependent on the government.  That is what we had throughout most of our history, and that is now what we are rapidly losing.

Just because you are working does not mean that you are independent.  At this point, most jobs do not pay enough to support a middle class family, and the ranks of the “working poor” continue to explode.  In reality, Americans are working harder than ever in 2018, and yet things continue to deteriorate.

The following are a few numbers that prove that we are rapidly becoming a nation of government dependents…

Over half the country now receives more in government transfer payments than they pay in taxes.

-According to one recent survey, the cost of living is higher than the median income in 42 U.S. states.

-Today, 50 percent of all American workers make less than $30,533 a year.

62 percent of Americans say that their financial situations have not improved since the last presidential election.

And here are six more from my friend Alan Yerushalmi

• According to a FED report, about 40 percent of adults in the U.S. said that if faced with a $400 unexpected expense, they would either not be able to pay it or would do so by selling something or borrowing money

• Almost 1 in 3 U.S. households have challenges paying energy bills

• About 40% of the American middle class face poverty in retirement

1 in 3 Americans have hardly any retirement savings

• Those over 65 have been filing for bankruptcy in droves

• Health spending per capita in the U.S. increased nearly 29 fold in the past 40 years, outpacing the growth of the economy

If things are this bad now, how dreadful will the outlook be once we are deep into the next recession?

History has shown that once national governments begin to expand in size, they usually keep expanding until they ultimately collapse.

Sadly, a large portion of the population has become convinced that the government should be in the business of handing out as much “free stuff” as possible.  Housing, healthcare and college education are now being called “human rights”, and tens of millions of our fellow citizens feel that they are entitled to be given these things by the government.  Needless to say, this has chilling implications for the future of our country, and I really like how Ryan McMaken made this point in his most recent article…

The political implications of this are considerable. As Ludwig von Mises once noted, once we get to the point that a majority of the voting population receives more in benefits than it pays in taxes, then voters will demand more and more wealth be transferred to them through government programs. It will then become politically necessary to extract larger and larger amounts of wealth from a minority in order to subsidize the majority.

Market economics will become less and less popular because the voters will have realized they can — in the words of James Bovard — “vote for a living” instead of work for a living.

Every additional dollar that the federal government spends is an additional dollar that is being stolen from our children and our grandchildren, and we are already more than 21 trillion dollars in debt.

We have been on the greatest debt binge in human history, and that debt binge delayed our day of reckoning, but it did not cancel it.

In fact, one of my contacts just emailed me with some deeply troubling information.  He has a customer that is a Bank of America board member, and that board member told him that they expect things to really start falling apart by late March “at the latest”.  This is word for word what my contact told me…

“I had a customer this past Saturday who was a very high ranking Bank of America board member, and she said in the meetings, they expect late March, at the latest, that things will really start to disintegrate fairly quickly or very quickly. That was AT THE LATEST she said.”

When I say that “dark days are ahead”, I am not using hyperbole.  We really have reached a turning point, and things will never be the same again.

The relentless march of time is inexorable, and eventually the clock runs out for everyone.  America has been living on borrowed time for quite a while, and a perfect storm is looming on the horizon.


Originally published by Michael Snyder of economiccollapseblog.com

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.





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By Isaac Davis | Waking Times | Sept. 26, 2018

The financial enslavement of the American people (and the rest of the world) is nearly complete. Not only are private banks, the Federal Reserve, and top-tier investing corporations given free rein to plunder public coffers, but the government itself spends uncontrollably, and some $21 trillion in tax money is now ‘missing.’ Not only is this unsustainable, it is outright criminal.

The middle class appears to be the target of economic hitmen, and to make matters worse, we now see that ordinary Americans are spending almost twice as much on taxes as they are on food and clothing combined.

In an article entitled Americans Spent More on Taxes Than on Food, Clothing Combined in 2017, CNS News reports on this astounding fact of modern life in the ‘freest country in the world:

“Americans on average spent more on taxes than on food and clothing combined in 2017, according to the Bureau of Labor Statistic’s new data on consumer expenditures, which was released this month.

“Consumer units” (which include families, financially independent individuals, and people living in a single household who share expenses) spent an average of $9,562 on food and clothing in 2017, according to BLS.

But they spent $16,749 on federal, state and local taxes.” [Source]




CNS goes onto to break down the tax burden of the average American:

“Even though Americans spent more on taxes in 2017 than on food and clothing combined, the average 2017 overall tax bill of $16,749 was still lower than the average 2016 overall tax bill of $17,153.

In 2016, according to the BLS, the average American consumer unit spent $8,367 on federal income taxes; $2,046 on local income taxes; and $75 on other taxes—which the BLS rounded to a subtotal of $10,489.

The average 2016 tax bill also included $4,695 in Social Security taxes and $1,969 for property taxes—bringing the total average tax bill for the year to $17,153.

Also in 2017, Americans spent on average $7,203 on food and $1,803 on apparel and services—for a combined $9,006 on food and clothing.” [Source]

Many activists and freedom fighters in America have been working to expose the corruption inherent in the federal income tax, noting that a tax on labor is unconstitutional and serves as a defacto form of indentured servitude. In his paradigm-shifting 2006 film, America: Freedom to Fascism, director Aaron Russo actually went to the IRS and spoke to the head of this monolithic agency, attempting to hold him accountable to the American people and the Constitution. Here’s what happened:

Final Thoughts

This is all happening at a time when the economy is supposedly doing fantastic, but wealth inequality is reaching astronomical proportions. It is even estimated that the world’s richest one percent will own two-thirds of all the wealth in the world by the end of next decade. This is a class of people who have the means to organize their financial lives in such a way that helps them to avoid paying taxes, demonstrating that taxes are a really great way to bilk the middle class and force them into supporting a corrupt political class and all the organs of big government.

Meanwhile, the American people have allowed themselves to be led into dangerous societal division by a corporate news media that ignores real issues, such as the corrupt taxing system, and directs their attention onto superficial political issues and sensational nonsense.


Contributed by Isaac Davis of WakingTimes.com

Isaac Davis is a staff writer for WakingTimes.com and OffgridOutpost.com Survival Tips blog. He is an outspoken advocate of liberty and of a voluntary society. He is an avid reader of history and passionate about becoming self-sufficient to break free of the control matrix. Follow him on Facebook, here.


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By Michael Snyder | EconomicCollapseBlog | Sept. 11, 2018

Are we on the verge of another great financial crisis, a devastating recession and a horrific implosion of the global debt bubble?  On my website I have been relentlessly warning my readers about the inevitable consequences of our very foolish actions, but now the mainstream media is beginning to sound just like The Economic Collapse Blog.  The coming crisis is so close now that a lot of them are starting to see it, and of course economic disaster is already a reality for much of the rest of the planet.  For years, the mainstream media told us that things would get better, and in a lot of ways we did see some improvement.  But now the tone of the mainstream media has become quite ominous, and that is definitely not a positive sign.  The following are 8 examples of mainstream media sources warning us of imminent economic disaster…

#1 Forbes: “Disaster Is Inevitable When America’s Stock Market Bubble Bursts”

As shown in this report, the U.S. stock market is currently trading at extremely precarious levels and it won’t take much to topple the whole house of cards. Once again, the Federal Reserve, which was responsible for creating the disastrous Dot-com bubble and housing bubble, has inflated yet another extremely dangerous bubble in its attempt to force the economy to grow after the Great Recession. History has proven time and time again that market meddling by central banks leads to massive market distortions and eventual crises. As a society, we have not learned the lessons that we were supposed to learn from 1999 and 2008, therefore we are doomed to repeat them.

The purpose of this report is to warn society of the path that we are on and the risks that we are facing.

#2 CNBC: “Tech stock sell-off could be just beginning if trade war with China worsens”

Congressional scrutiny of social media companies and fears of new regulation pummeled their stocks, but other tech names could also soon be vulnerable to a new round of selling pressure if President Donald Trump goes through with new tariffs on Chinese goods.

#3 Bloomberg: “Emerging-market rout is longest since 2008 as confidence cracks”

For stocks, it’s 222 days. For currencies, 155 days. For local government bonds, 240 days.

This year’s rout in emerging markets has lasted so long that it’s taken even the most ardent bears by surprise. Not one of the seven biggest selloffs since the financial crisis — including the so-called taper tantrum — inflicted such pain for so long on the developing world.

#4 CNN: “Emerging Markets Look Sick. Will They Infect Wall Street?”

Chinese stocks are is in a bear market. Turkey’s currency has collapsed. South Africa has stumbled into a recession. Not even an IMF bailout has stemmed the bleeding in Argentina.

The storm rocking emerging markets has its origins in Washington. Vulnerable currencies plunged as the US Federal Reserve steadily raised interest rates. And President Donald Trump’s trade crackdown added gasoline to the fire.

The trouble could spread, infecting other emerging markets or even Wall Street.





#5 The Motley Fool: “6 signs the next recession might be closer than we realize”

To be perfectly clear, trying to predict when recessions will occur is pure guesswork. Top market analysts have called for pullbacks in the market, unsuccessfully, in pretty much every year since the Great Recession ended. But the economic cycle doesn’t lie: recessions are inevitable. And in my estimation, we’re probably closer to the next recession than you realize.

How can I be so certain? Well, I can’t. Remember, I just noted there’s virtually no certainty when it comes to predicting when recessions will occur. There are, however, six warning signs that suggest a recession could be, in relative terms, around the corner.

#6 Forbes: “U.S. Household Wealth Is Experiencing An Unsustainable Bubble”

Since the dark days of the Great Recession in 2009, America has experienced one of the most powerful household wealth booms in its history. Household wealth has ballooned by approximately $46 trillion or 83% to an all-time high of $100.8 trillion. While most people welcome and applaud a wealth boom like this, my research shows that it is actually another dangerous bubble that is similar to the U.S. housing bubble of the mid-2000s. In this piece, I will explain why America’s wealth boom is artificial and heading for a devastating bust.

#7 Savannah Now: “Global debt soars, along with fears of crisis ahead”

“We were supposed to correct a debt bubble,” said David Rosenberg, chief economist at Gluskin Sheff, a wealth-management firm. “What we did instead was create more debt.”

#8 CNBC: “The emerging market crisis is back. And this time it’s serious”

But markets are feeling a sense of deja vu. Blame it on a stronger dollar, escalating tensions since President Donald Trump came to power, worries over a full-fledged trade war with China or rising interest rates in the U.S., this time around the crisis seems to have entered a new phase.

The damage is far more widespread. The crisis has engulfed countries across the globe — from economies in South America, to Turkey, South Africa and some of the bigger economies in Asia, such as India and China. A number of these countries are seeing their currency fall to record levels, high inflation and unemployment, and in some cases, escalating tensions with the United States.

I don’t think that we have seen such ominous declarations from the mainstream media since the last global financial crisis in 2008.

And the mainstream media is not alone.  Yesterday, I discussed the fact that tech executives on the west coast are setting up luxury survival bunkers in New Zealand in order to prepare for what is ahead.

They all know what is coming, and they also know that it is approaching very rapidly.

This chapter in American history is not going to end well.  On some level, all of us understand this.  Storm clouds have been building on the horizon for quite some time and the warning signs are all around us.

Our day of reckoning may have been delayed, but it was not canceled.  America has a date with destiny, and it is going to be exceedingly painful.


This article originally appeared on The Economic Collapse Blog

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.


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By Ron Paul | RPI | July 30, 2018

President Trump’s recent Tweets expressing displeasure with the Federal Reserve’s (minor) interest rate increases led to accusations that President Trump is undermining the Federal Reserve’s independence. But, the critics ignore the fact that Federal Reserve “independence” is one of the great myths of American politics.

When it comes to intimidating the Federal Reserve, President Trump pales in comparison to President Lyndon Johnson. After the Federal Reserve increased interest rates in 1965, President Johnson summoned then-Fed Chairman William McChesney Martin to Johnson’s Texas ranch where Johnson shoved him against the wall. Physically assaulting the Fed chairman is probably a greater threat to Federal Reserve independence than questioning the Fed’s policies on Twitter.

While Johnson is an extreme example, history is full of cases where presidents pressured the Federal Reserve to adopt policies compatible with the presidents’ agendas — and helpful to their reelection campaigns. Presidents have been pressuring the Fed since its creation. President Warren Harding called on the Fed to lower rates. Richard Nixon was caught on tape joking with then-Fed chair Arthur Burns about Fed independence. And Lloyd Bentsen, President Bill Clinton’s first Treasury secretary, bragged about a “gentleman’s agreement” with then-Fed Chairman Alan Greenspan.

President Trump’s call for low interest rates contradicts Trump’s earlier correct criticism of the Fed’s low interest rate policy as harming middle-class Americans. Low rates can harm the middle class, but they also benefit spend-and-borrow politicians and their favorite special interests by lowering the federal government’s borrowing costs. Significant rate increases could make it impossible for the government to service its existing debt, thus making it difficult for President Trump and Congress to continue increasing welfare and warfare spending.

President Trump will have a long-lasting impact on monetary policy. Two of the three sitting members of the Fed’s board were appointed by President Trump. Two more of Trump’s nominees are pending in the Senate. The nomination of economist Marvin Goodfriend may be in jeopardy because Goodfriend advocates “negative interest rates,” which is a Federal Reserve-imposed tax on savings. If Goodfriend is defeated, President Trump can just nominate another candidate. President Trump will also be able to nominate two other board members. Therefore, by the end of his first term, President Trump could appoint six of the Federal Reserve’s seven board members.

The specter of a Federal Reserve Board dominated by Trump appointees should cause some to rethink the wisdom of allowing a secretive central bank to exercise near-monopoly control over monetary policy. Fear of the havoc a Trumpian Fed could cause may even lead some to support the Audit the Fed legislation and the growing movement to allow Americans to “exit” the Federal Reserve System by using alternatives to fiat money, such as cryptocurrencies and gold.

Given the Federal Reserve’s power to help or hinder a president’s economic agenda and reelection prospects, it is no surprise that presidents try to influence Fed policy. But, instead of worrying about protecting the Fed from President Trump, we should all worry about protecting the American people from the Fed. The first step is passing the Audit the Fed bill, which Congress should do before adjourning to hit the campaign trail. This will let the people know the full truth about America’s monetary policy. Auditing, then ending, the Fed is key to permanently draining the welfare-warfare swamp.


Contributed by Ron Paul of Ron Paul Institute for Peace and Prosperity.

Dr. Ron Paul is an American physician, author, and former politician who served as the U.S. Representative for Texas’s 14th congressional district, which includes Galveston, from 1997 to 2013 as well as the 22nd congressional district for special term between 1976 and 1977, when he lost reelection in 1978, and for 3 later terms, from 1979 to 1985. On three occasions, he sought the presidency of the United States: as the Libertarian Party candidate in 1988 and as a candidate in the Republican primaries in 2008 and 2012. Paul is best known for his libertarian views and is a critic of American foreign, domestic, and monetary policies, including the military–industrial complex, the War on Drugs, and the Federal Reserve.


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