Oh, Say, Can You Still See?

By Dr. Russell McDougal

Dear Reader,

Most of you, as American citizens, are being robbed blind.  Many suspect something is seriously wrong with our financial and economic structure.  But few comprehend the true underlying problem.  Fewer still know how to protect themselves or even prosper during chaotic economic times.

What is the root of the problem?  Our money and the people who print and “manage” it do so for their own interests only.  This system of money was designed to take from the unsuspecting.  It was put in place to enrich the bankers that brought the Federal Reserve our way by deception in 1913.  Planet Earth is now under its spell.

All know that “inflation” is a bad thing and costs us dearly.  The underlying cause of inflation, an invisible tax, remains obscure.  It has never been more important for you to see through the haze and protect yourself.

The U.S. and global banking systems remain under extreme duress.  Still, the subprime real estate loans are only part of the problem.  Banks and other financial institutions have greedily delved into trillions of dollars worth of weird private contracts known as “derivatives.”  These are unregulated private bets that were supposed to eliminate risk in markets.

So far, so bad.  These derivatives are coming unglued alongside all the junk U.S. real estate mortgages held by financial institutions in most foreign countries.  Bank bailouts are now commonplace.  I’ve seen a recent estimate of up to $2 trillion worth of bailouts.  These are a hidden tax on you!

There are assurances that “the banking system is sound.”  Does it make you a little nervous that such a proclamation is even necessary?  Is the proclamation believable?

Today’s essay is the first in a new series designed to explain many of the ways in which you are being stolen blind.  I’ll be presenting the inner workings and mechanisms of fiat money in plain English.

I frequently mention the book entitled The Creature from Jekyl Island by Edward Griffin (http://www.bigeye.com/griffin.htm).  You operate with blinders on if you fail to read this master treatise.

The epicenter of current worldwide financial stress is the United States, but citizens around the globe are subject to similar abuses.  There is no honest money to be found anywhere you look.  The Liberty Dollar, an honest money endeavor, was just shut down by the U.S. government.

Since WWII, the U.S. has had the privilege of issuing the reserve currency that serves as a foundation for global commerce and financial stability.  Britain previously held that privilege, but they suffered from empire overreach.  Sound familiar?

Let’s look at the Fed’s initial mandate in 1913.  It was supposed to create “price stability” as well as economic growth.

The most amazing thing about this chart is the pre-Fed price stability of the 1800s and very early 1900s.  The 1800s represent an entire century with little if any consumer price distortions!  We are more recently accustomed to high yearly inflation figures, however dishonestly presented.

That period of time was served by Constitutionally mandated real money - gold and silver.  Honest and sound money protects the middle class, savers, and those on fixed incomes.  These are the folks most in jeopardy during our present banking and monetary crisis.

Gold was removed from the international monetary system in the early 1970s.  The result of that default is quite apparent in the above chart.

The Federal Reserve is an instrument of inflation.  They are a private corporation, registered in the state of Delaware, that controls the supply of money.  There is NO inflation unless they print excess dollars.  Prices rise as a direct consequence of the Fed producing too many bucks.

You cannot create excess money out of thin air and expect the existing pool of money to retain its present value.  Don’t blame oil companies for rising energy prices.  Don’t blame farmers for rising food prices.  The fault is with the fraudulent Fed.

You won’t learn these issues in our indoctrinated universities.  Don’t look for the Creature from Jekyl Island in their libraries.  The Fed is currently in hyper-inflation mode with all their crony bailouts.  These are perilous times for the unaware.

Invest Resourcefully,

Rusty

P.S.  To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

[Ed. Note: Dr. Russell McDougal has dedicated years of study and investing in the natural resources exploration sector. During that time he has closed out DOZENS of gains of 500%... 1,000%... 2,000% and more! Currently he is sitting on multiple thousand percent winners, including one stock that is up a whopping +5,000%. And for a select group of investors, Rusty has agreed to share his secrets of success... and his top stock recommendations. Click here to learn more... ]

Market Watch

Is Chrysler Getting Fixed?

By Charles Delvalle

There’s a big reason why American car manufacturers aren’t as profitable as their Japanese counterparts.  And it finally looks like Chrysler is chipping away at that lead by doing something very logical.

First, they got a new UAW agreement that saves them a few billion dollars a year.  This agreement is enough to give them about a thousand dollars more profit for every vehicle they manufacture.

And now, the company wants to start combining their three brands (Dodge, Chrysler, and Jeep) into cohesive units that won’t compete with each other.  In other words, Dodge would sell trucks and work vehicles.  Chrysler would sell cars.  And Jeep would sell, well, Jeeps and SUVs.

What does this do?  Well, now they won’t have a midsize Dodge sedan competing against a midsize Chrysler sedan.  Since there are fewer cars to manufacture, they save even more on development and research.  And they gain economies of scale more easily.

If this experiment works with Chrysler, expect Ford and GM to follow suit.  This move alone could bring them much closer to the type of profitability that Nissan, Honda, and Toyota enjoy.

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