FINANCIAL CRAPS AT YOUR OWN RISK
October 14, 2005
My recent column brought a boat load of mail. Many had questions and a few wanted to tell me peak oil is a scam based on a column by Steve Watson, Alex Jones and & Paul Watson, October 4, 2005, titled 'Peak Oil is a Corrupt Globalist Scam.' As for the peak oil issue: You can believe it or choose not to, your choice. There was one statement I highlighted from Michael Ruppert's speech that I think some didn't pick up on:
"May 2001 - The National Energy Policy Development Group. This secret task force, which fought all the way to the Supreme Court to keeps its records and deliberations secret from the public, is for me the place where the deepest darkest secrets of both the September 11th attacks and government's awareness of Peak Oil lie buried. The task force convened just as the first 20 out of 25 wells drilled in the Caspian Basin came up dry holes. In "Crossing the Rubicon" I discuss the meager seven pages of NEPDG records released after lawsuits which confirm the group's obsession, not with oil discovery, conservation (economic stagnation) or energy substitutes, but with where the known oil was, who owned it and apparently who had to be dealt with to get it."
For those who may not be aware, Judicial Watch sued over these secret hearings and you can read about it here. These legal filings by JW are very important. Like JW and Ruppert, I believe we the people have the right to see all those records of secret deliberations. Bush's minions, of course, are fighting tooth and nail to keep what they're hiding from we the people.
However, let's put oil and energy in real time. Put aside the peak oil argument for the moment. No question obscene amounts of energy are wasted every day on this globe because people simply think there's no end to what they take for granted. No question alternative energy fuels and resources have been stifled by the big oil cartels to protect their own interests. No question people will have to be more creative in the future in order to make "things work." Right here, right now, however, the high cost of this liquid gold is having a huge impact on the economy: It's also the reason for the unconstitutional invasion of Iraq.
There is oil out there right now. One of the biggest problems is that there has not been a single new refinery built in this country for 30 years. No one wants a refinery in their backyard. Crude oil doesn't just travel from the earth, up through pipes on those big oil rigs in the gulf onto freighters, into ports, pumped into trucks and unloaded at a gas station near you. It has to be refined. When the demand goes through the roof, but production facilities (refineries) to keep up with demand don't get built, you have a problem. This winter is going to see our fellow countrymen and women in "rich America" who will have to struggle just to keep their house warm. For some, they will have to balance heat vs food on the table. It is obscene that Americans die every winter in this land of plenty from freezing to death in their apartment or little home because they can't afford fuel heating oil or huge energy bills.
Yes, the oil companies do make tens of billions of dollars in profits. That is their right under a free enterprise system. This would change is there was competition from other sources, i.e. viable alternative energy sources. However, access to those alternatives remains difficult because of the vast amounts of money paid by the oil cartels to buy the favors of Congress and the White House to keep them at the top of the heap. I would have absolutely no hesitation buying a new SUV powered by electricity for my in-town and local driving which amounts to a tank of gas maybe twice a month. I own two Jeep Cherokees because I feel safer in them up against 18-wheelers and huge pick up trucks, not to mention every other driver on the road with a cell phone glued to their ear. The only problem is that the waiting time is a year or longer and the price tags, even for little toasters - is astronomical at this point.
Due to the high cost of gasoline, Americans aren't going out as much. The cost of goods and services - especially food - is steadily climbing and will continue to rise as diesel goes up. Our road warriors (truckers) are running into debt just putting the key in the ignition. The high cost of diesel is running many into bankruptcy. I know cases of independents who are just parking their rigs until there is some light at the end of the tunnel. They simply can't continue to go into debt for each run. Only the biggies will stay on the road, but that extra fuel cost has to be passed onto the consumer. America's grocery stores have a three day or less warehouse stock. Without those truckers - who live a hard life, believe me - the grocery stores would sit empty and so would "fun" operations that depend on supplies. The airlines are either canceling flights or cutting back on them because of fuel costs. All of this hurts the economy.
Those extra dollars spent on a tank of gas are dollars that don't go back into the economy. We're not talking about an extra $2 or $3 dollars here, but as much as an extra $40.00 per tank. Since this disposable income goes in the tank so people can get to work, retailers and entertainment based companies won't get it and will begin to lose money. When that happens, the pink slips get handed out. The American worker has already seen a substantial stifling of wages due to cheap labor provided by criminals (illegal aliens) and employers who care nothing for the law. Their only concern is the bottom line (profits) and if they have to lay off a half dozen American workers and hire six criminals (illegals) to keep going, think they will hesitate? They haven't in the past and they won't in the future. It's called dog eat dog. Those who won't hire the illegals, simply won't hire and make do with what they can afford.
Millions of Americans have refinanced their homes over the past 3-4 years. The smart ones and it is a substantial number, refinanced, not to get money to spend, but to get out of debt. Pay off credit cards, auto loans and other debts. This means that this cash taken out of home equity did not go back into the economy.
I am aware that time is in short supply for Americans. They are being run ragged just trying to put food on the table, stuck in commute traffic for hours on end and family obligations. I sincerely hope you can take the time to read an accurate assessment of what is going to happen when the first wave of baby boomers retire in less than three years. Ms. Lochhead has done a fine job telling Americans what Congress and the White House doesn't want you to know and it is the raw truth: All this "free prescription medicine" and massive social welfare spending, propping up foreign dictatorships and unconstitutional wars over the past 45 years is finally going to break the bank.
Americans are living on credit - debt. Because we are being taxed to death - as much as 52 cents on every dollar - Americans can't save anything for their "golden years," nor do they have any cash so they use plastic. Without credit cards, this economy would collapse within 48 hours. As I pointed out in my last column, the number of people delinquent on credit card payments is astronomical. Those enslaved to credit card debt are now facing new regulations that take effect before the end of the year. Conveniently, the new bankruptcy laws take effect at virtually the same time - a double whammy. Now, these debt ridden folks who could barely make the minimum on their credit cards will now be forced to make a larger payment. In turn, that takes what few pennies they did have left in disposable income to spend into the economy, doesn't get spent, but given to the credit card companies.
Here's an example of the credit card trap: "Here's what could happen if you pay the average 2 percent minimum payment on a $10,000 credit card debt. At 18 percent interest, it will take you about 58 years to be rid of your debt. In that time, you will pay $28,930.64 in interest, according to a calculator at Bankrate.com that shows people the true cost of making minimum payments."
Then you have people like me who refuse to buy anything made in communist countries like China, Hong Kong, Viet Nam. (The only exception is my computer and I don't own any of these gadgets like iPods. I have no spare time for trivialities and they're all foreign made. If I have to buy, I go to my web site and find the product made in the USA by American workers or I go with out.
Americans are not taking seriously the amount of debt created by Congress which is owned by foreign governments who are sounding the alarm:
It's time to take seriously a US-led global recession By: Lau Nai-keung/China News/October 6, 2005
"I think it is time that we should take a serious look at the possibility that the US is going to take us down towards a worldwide recession in one or two year's time. It is well known that the US is the world's biggest economy, taking up about 30 per cent of global GDP, but it is now also the world's biggest debtor country. According to the most authoritative person on this subject, the US Comptroller General David Walker, who audits the federal government's books, the tab for the long-term promises the US Government has made to creditors, retirees, veterans and the poor amounts to US$43,000 billion, US$145,000 per US citizen, or US$350,000 for every full-time worker.
"And this figure does not even take into account all the personal debts such as credit card bills and mortgages. With a low interest rate of 1 per cent running for the past three years in a row, savings plummeted to just 1.8 per cent last year, below 1 per cent since January and at zero in the latest estimate from the Bureau of Economic Analysis. In 2000, household debt broke 18 per cent of disposable income for the first time in 20 years. Credit card debt alone averages US$7,200 per household.
"The US Government indebtedness is financed this way: The US now runs a trade deficit roughly 6.5 per cent of its GDP and the gap is widened every day. Its citizens are spending ever more on foreign goods, and with the US dollar as the international currency, the US Government just prints money to finance the deficit. And with this money, central banks in the surplus countries purchase most of the US Treasury bonds as currency reserve."
If you read the full column, you can also read between the lines. China and other countries are dumping and will dump more American debt while protecting themselves and then guess what will happen to the dollar? I suppose it's just human nature to want to remain in a comfortable state of denial, but that won't keep the have not's from shooting you for a loaf of bread or having the bank foreclose on your home because those four minimum wage jobs coming into your household can no longer keep you afloat.
The new budget from "the best money can buy" in Congress and signed off by Mr. Bush is over $2 TRILLION dollars. As I pointed out in my last column: There is no money in the U.S. Treasury. Every penny flogged off the backs of the American worker goes to pay down the "national debt" and the rest for Bush's endless war on terror, rebuilding foreign countries and unconstitutional transfer payments to the IMF, the communist UN, the World Bank and dictators in banana republics. Every penny will have to be borrowed. At the risk of repeating myself: No matter what Bush or Greenspan spew in order to keep the masses calm, our economy is based on massive debt and debt is not prosperity. - eventually the piper has to be paid.
What is done can be undone, but not until enough Americans finally take to the streets and demand the rape and pillaging of our country stop. In the meantime, those who still believe Congress, Bush or some state legislator is going to save their bacon are playing financial craps. This weekend instead of watching play offs, football games or taking the sail boat out, I respectfully recommend you read two important columns by Dr. Edwin Vieira:
Edwin's book, Pieces of Eight, will educate you on the issue of the central bank, gold and how a debauched currency will always bring down a country. On line, you can also read Congressman Louis McFadden's indictment on the Federal Reserve Corporation. It is a very concise explanation of how the international banking cartel has been sacking this country's wealth since 1913.
The point of no return has come and gone. I am fortunate in having discovered all of this years ago. While it hasn't been easy, our only debt is our home mortgage. Too many e-mails I received from my last column were not cheery reading. So many Americans are just barely making it. By the time they get fleeced for all these taxes and take care of just the basics in life for them and their children, forget putting anything into a savings account. If you don't understand gold or would like to learn how to protect what you have left, please do contact Harvey Gordin at El Dorado Gold. He will send you a very important 32-page report that will assist you; there is no obligation or pressure.
In closing, individuals can choose to do nothing and hope for the best or they can at least begin the process of learning how to prepare for the worst because it's coming. A criminal defense attorney doesn't plan their entire defense case five minutes after the state rests their case, they begin the process months or even a year ahead. Planning and execution of a plan takes time. The numbers don't lie, but politicians and those who feed off the system do because it's essential to their existence. Playing financial craps is a very risky proposition.
"If we run into such debts as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our callings and our creeds, as the people of England are, our people, like them, must come to labor sixteen hours in the twenty-four, and give the earnings of fifteen of these to the government for their debts and daily expenses; And the sixteen being insufficient to afford us bread, we must live, as they do now, on oatmeal and potatoes, have no time to think, no means of calling the mismanagers to account; But be glad to obtain subsistence by hiring ourselves to rivet their chains around the necks of our fellow sufferers; And this is the tendency of all human governments. A departure from principle in one instance becomes a precedent for a second, that second for a third, and so on 'til the bulk of society is reduced to mere automatons of misery, to have no sensibilities left but for sinning and suffering...and the forehorse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression." --Thomas Jefferson
� 2005 Devvy Kidd - All Rights Reserved
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Devvy Kidd authored the booklets, Why A Bankrupt America and Blind Loyalty, which sold close to 2,000,000 copies. Devvy appears on radio shows all over the country, ran for Congress and is a highly sought after public speaker. Your complimentary copy of the 32-page report may be obtained from El Dorado Gold. Devvy is a contributing writer for www.NewsWithViews.com.
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Individuals who can't make even the minimum payment on their credit cards can't spend. They have no disposable income left for anything other than basic survival.