I was just listening to an infomercial by a gentleman named Porter Stansberry, owner of an investment corporation, who makes claims that he “predicted” the bankruptcy of Fannie Mae, Freddie Mac, General Motors, Bear Stearn’s, and other major corporations, and that his clients who listened to his predictions made a nice return on their investments because of it. His infomercial, which is promoted on various popular alternative sites, speaks of the dollar as being the current world’s reserve currency and that because of such humongous debt, the United States dollar will inevitably crash, loosing this singular distinction.
Here is that website (which I do not promote): http://pro.stansberryresearch.com/1011PSIENDVD/PPSIN315/
Mr. Stansberry offers a solution to this so-called dollar crash.
What is that solution?
It is the same “solution” he previously suggested for the bankruptcy of the aforementioned corporations, having told his “clients” to short bet their investments in these corporations so as to make a profit from the inevitable collapse and devaluation of their stock, and of their takeover by government or other corporations (bailouts).
Note: this is what happened just days before 9/11 – short betting the airlines before a man-made disaster would knowingly and drastically lower the value of those airline’s stock.
So Mr. Stansberry is not so much offering a solution to the problem of corrupt corporations and the government that regulates and allows them to operate in such a way, but instead offers a way to use the most destructive and dangerous method in history (usury) to make money off of other money by participating in the corruption. In other words – to make a bet that one or more corporations and the dollar will fail, and make money from that failure. It is a mind-boggling comprehension that this method of wealth-building is even allowed by law (legal code), considering the historical aversion and destruction caused from usury to most all past “economies” in history, and of course the writings of all but one religious text that is absolutely opposed to and abhorrent of this usurious method of profit-banking.
Where does this investment return come from?
How can you bet against the success of a corporation, and somehow pull money from a decaying entity and its lowered stock value?
How do you suck blood from a turnip?
Of course, the answer is simply that every stock “trade” has two sides to the bet. One side will lose while the other side will gain. The stock market is nothing more than a legal casino for deceit and usury, designed to make those who promote usury a bucket-load of money. It certainly does not represent the actual value or reputation of a company. When you make a small stock investment, your “broker” or online trading company (for the do-it-yourself-ers out there) do not in any way care whether you win or lose on your particular transaction or trade. They make money regardless of its outcome, via commission on the transaction. Many will convince you (and many others) to buy or sell certain stocks so that the price will go up or down in the market, which will effect the “short” or “long” bets that major funds, corporations, and government institutional funds have made on that stock. A penny in either direction can be worth millions! And of course mutual funds, which control many individual people’s retirement investment capital, will buy and sell investment stock not to help their individual investors and retirees, but to ensure that these future bets are paid by manipulating the price of the stock with huge amounts of pooled fools money.
Is this strategy of Mr. Stansberry’s secret advice (that you must pay for) and why he made this infomercial?
I don’t have that answer. And I’m not here to pick on this man or call him names.
Frankly, I really don’t care.
The point of this writing is to try and make him and you see that this whole system is completely based on usury. No matter how sincere or profitable any of these financial schemes sound, they can only succeed on one side of the trade. In other words, someone must loose on the other side of your (or his company’s) trade. And chances are, it will be the little people; the working class, who loose. The money doesn’t just disappear when these stocks go down in value. It goes to the winner of the bet. And when millions of families lost their entire investment portfolios in the last two decades, due to the quite purposeful mini “economic collapses” that seem to rear their ugly heads every few cycles, that lost retirement money went into someone else’ pockets – and that someone else was in fact major banks and investment corporations… and more importantly, government institutional funds.
And here’s the kicker.
Porter Stansberry’s whole premise about this inevitable collapse of the U.S. dollar is based upon his often quoted “budgetary reports” from government. He even states that many local municipal corporations are completely in debt, bankrupt, and cannot recover from this situation, based on their “budget reports”.
By using this information, he is contributing to the media and government’s budget fallacy.
As I’ve been writing, speaking, and making movies about for the last two and a half years based on the governments required audit – the Comprehensive Annual Financial Reports (CAFR) – the budget report is nothing more than a convenient and incomplete accounting of the vast amounts of wealth and investments held by each of these Federal, local and state governments, per their investment trust and pension funds and State Treasurer’s commingled investment funds.
Anyone who has the proclaimed knowledge of the stock market as Mr. Stansberry so claims, must by default know that government institutional funds are the main shareholders of most all corporations in the world, not just in the United States. From China to Iraq to Mexico, government institutional funds – especially the world-wide pension system – is the owner of controlling stock in these corporations, hands down. And government is also a major investor in mutual and other private investment funds. For Mr. Stansberry to consistently refer to the budget reports of government without speaking to the CAFR and investment holdings reports of government, which show trillions of dollars in stock, real estate, foreign currency, and other liquid assets held by government, he is either ignorantly or purposefully misleading his potential “customers” into believing the biggest fallacy and Ponzi scheme in history – that the United States government is broke.
And of course these investment firms are trying to convince you that making the proper casino bets will hedge a dollar and economic collapse in the stock market.. And of course by investing in precious metals (which these firms no doubt bought at a very low price, as did anyone pushing gold and silver to make the price continue on a ridiculous price increase – to increase the value of their own holdings via increased demand) you will be able to make more money by shorting or long betting these stocks. This profit will come despite the whole premiss this scheme is based on – a complete and total economic and dollar collapse?
And this is somehow a good thing to support and take advantage of?
Well wait a minute… to see the return on these investments, you must sell these stocks for more dollars! Under this premise, if the dollar collapses and you are still living in America, what good will a bunch of dollars do from your short bets? And as for the gold and silver investments advised, what good will gold be if it is valued in dollars? The claim that gold will go up in value to $5,000 is nothing but a very popular and deceiving gimmick. With a theoretical collapsed dollar, $5,000 or $500,000 in gold valued in dollars will be all but worthless in dollars, since the dollar will be worthless.
And as for trading gold for goods and services – that is if you can hold on to your gold when the so-called collapse happens and the pre-predicted angry and hungry mobs come around and take everything you have by force, including your life – good luck getting from point A to point B and back to point A without getting robbed, getting your home robbed while you are gone, or even getting back home with your life and limbs attached.
This is not an attempt to get you to buy anything, for I have nothing to sell. I am simply trying to bring logic and reason into this ever more unrealistic theory of a collapse of the “system” and of the dollar. Please understand that the ridiculous comparison of the United States to small empires and governments like the Wiemar Republic and Argentina when considering a dollar crash is pure fear-mongering. They are not the same situations, and those countries did not police the world, have the world reserve currency, or possess the strongest and one of the most brutal military’s in the world to ensure the dollar’s authority. This is an appealing fallacy that just needs to go away.
The dollar has power throughout the world for one reason and one reason only. It is not, as Stansberry claims, because the United States can simply print more dollars anytime it sees fit, though this is certainly a nice benefit. This does not give the dollar one ounce of value, authority, or spending power in the United States or anywhere in the world. If this was the case, we could just combine all of our monopoly board games and use monopoly money for the world reserve currency. And if we ran out, Parker Brothers could just print more and the world would be saved!
No… the truth is that the dollar only has value because of one simple and quite disgusting truth.
What is that simple truth?
The dollar has value, authority, and spending power simply due to the fact that the United States military beats the shit out of anyone who doesn’t accept it, making it what is referred to as the “world reserve currency” – a pretty, politically correct way of saying what it really is: blood money. Libya is the latest victim, having separated from the international banking system and creating a virtual utopia in the desert. 40 cent gasoline using Libyan and only Libyan oil, which was nationalized and owned by the people. An aqueduct system without water rights belonging to the United Nations or other corporate interests – but again to the people – bringing the miracle of underground water reservoirs to the harsh desert surface. And truly attempting to house every Libyan before Gaddafi would house his own father.
And for this treason against the dollar and its ghost (the petrol-dollar), Libya, its economy, its leader, and its people have been dealt with and decimated.
Iraq, Afghanistan, Pakistan, Syria, Lebanon, Somalia… care to guess who owns the water and mineral rights for these victims of the U.S. military-backed dollar?
And rest assured, the military and the federally militarized municipal corporation (city) and state police will beat the shit out of and incarcerate you too if you dare try and make your own currency – at least one that is effective and competitive against the dollar or is non-taxable. It’s already happening all around you (see: “The Liberty Dollar”).
Hell, you can’t even collect rain water anymore in your own backyard in many areas of your own America.
So will the dollar crash, as reported by so many who have been selling their financial services for so many decades to new generations of the fearful and unintentionally usurious hoards of people just trying to stay above water?
Well… let’s think about this for moment.
The United States has been incrementally and covertly usurped by two of the most powerful entities ever created – the BAR Association and the banking institution cartels. The BAR has created a set of copyrighted legal rules that are specifically designed to obfuscate and confuse the typical American, while at the same time protect the artificial persons called corporations from the confused and manipulated people.
In an ideal fascist state, there are so many legal restrictions and codes that it is virtually impossible for the average person to not break the law every day of their lives. Welcome to America! This is an accurate description of the BAR and its case law (public opinion) when combined with U.S. Legal CODE – the prima facie (presumed consent) law that rules America and Americans.
Sadly, the people have been fooled quite succinctly that by taking the action of voting for an individual person to represent them in congress, that the people somehow have a say in government, and thus by default a say in what is composed and made into law (U.S. CODE) by these representatives of the people. This is referred to as “the voting process”. Some call it “democracy”. Of course, in reality the people only vote for the persons who will vote for them, called congressmen and senators – the popular name of these Federal employees being “representatives”. And with a passion unprecedented in many other political outlets, the people demand the right to vote. But they don’t actually vote for anything but the people that will vote for them. It’s a sad spectacle costing taxpayers billions of dollars in advertising and publicly funded lobbying money per election, only to put into office the persons who will pass the laws that will rule and enslave the people even further, without the people ever casting a vote.
Lately, this process has whimsically been referred to as “Hope and Change”.
And the people eat it up – hook, line, and sinker.
The moral of the story is that the people aren’t voting for anything that happens in government, aside from the local and state initiatives on the ballot that are, inevitably, either changed later by state legislation or are struck down by – you guessed it – the BAR Association in the government contracted court system (the private corporation called the BAR is contracted by government to make and adjudicate the law). The reality is that the people have no vote for anything at all but the choice of who their slave-masters will be, and even that is decided on digital machines that have been proven over and over to be easily rigged in fixed elections.
So, with all of this in mind, the question still stands…
Will the dollar crash?
Let’s try to answer that question with a bit of reason and logic, in the form of another question:
If you were the government, or part of the holders of the puppet-strings that is government, and you have just incrementally over 100 years set up a total control and surveillance grid via banking and public debt, having the people so completely wrapped around your finger and completely dependent upon you for just about everything due to your destruction of any decent educational system, would you then let that power and control just fall into oblivion and loose that control, power, and wealth?
How about if you could write off that debt any time you wished because your military would lay waste to anyone who complained about a default?
A better question would be: What is wealth?
Answer: Not the dollar.
And this is the final answer to the question as to whether or not the dollar will crash:
Answer: It doesn’t matter, because the dollar isn’t wealth.
Oh boy, now I must prove this answer…
A dollar is simply an unfinished contract between two entities. The entity or person who held the dollar before trading (spending) it had nothing more than the debtor portion of a contract. Whomever traded that dollar to him or her in the first place was the holder of that debt before him, and so on. The current holder of that dollar has nothing but a piece of paper that represents the potential for wealth, and is eager to trade (spend) that dollar in order to obtain real wealth. He who is left holding the dollar if it devalues is just out of luck, since no one will trade wealth for a dollar.
What is real wealth?
Again, not the dollar. Real wealth is ownership of some thing, be it property or real estate, stock in a corporation (which represents ownership in that corporation), or other tangible or intrinsic assets that have a value to more than one person. A dollar is used as a contract to acquire that asset from the other entity or person. The dollar is nothing more than an unfulfilled portion of a contract, and must be traded elsewhere in order for it to be transformed into real wealth. The dollar’s contractual value is determined by the corporate persons that are appointed by the people you vote for (or don’t vote for) in government, via the treasury and the Federal Reserve, whom once again has the military industrial complex to back up what it says the trading value of the dollar is world-wide.
Now let’s take the government of the United States and ask the question:
Is the United States government wealthy?
Oh yes… indeed. It is wealthy beyond imagination. But not because it holds dollars. Again, the Comprehensive Annual Financial Report shows that government holds many trillions of dollars worth of everything but dollars – real estate, stock investments, all foreign currencies, banks, General Motors, and many many government owned corporations both national and international. One pension fund alone held over $1 billion dollars in just Chevron Corporation stock at market value, and there are thousands and thousands of these funds! The Social Security Fund is sitting at over 2.5 trillion dollars in investments.
But the government is not interested in holding the dollar… For the dollar is not wealth. Of course it has a few for petty cash!
Instead, the government prints money (in the digital realm, not on paper) with virtually no limitations (since it makes its own rules and laws), and continuously invests those digital dollars into real assets, stocks, real estate, investment funds, etc.
Of course, that money has to be paid back somehow, because those digital dollars represent a debt contract. And whoever is left holding that debt is out of luck, since the dollar (debt) is simply not wealth. So… it is important to understand what the so-called U.S. debt actually represents. What does it actually mean when the President or congress states that the national debt is over 10 trillion dollars?
You see, the government is a corporation. The people of the United States are the constitutors (debtors) of that corporation.
In short, the government (as a private corporation) is not in debt in any way whatsoever. It cannot really be in debt to itself now can it?
Because the people abide by the prima facie law created by their “representatives” who vote over and above what the people want, and have made damn sure that the people are contractually obligated to the dollars (debt) that is created by government.
What does this mean?
Step 1: The government creates the dollars.
Step 2: The government declares that the dollars represent the good faith and credit of the United States. (Note: that means that it represents the value of you and what you think is your property).
Step 3: The government spends the dollars in order to obtain real assets and investments.
Step 4: The government declares that due to the fact that it was voted upon by the people (the people’s representatives, actually) to create this money, either via the Executive Branch or the Legislative Branch for which the people voted for its members (Federal employees), the people are thus placed into debt to pay back the government the trillions of dollars that it created and spent or invested on behalf of the people. This is called nationalizing the debt.
In other words, the corporation (government) spends the people’s money but never has to pay the people back. Instead, it spends the peoples money, and then charges the people the same amount (plus interest) as debt for the privilege of it spending the people’s dollars. Now, imagine if I asked you to borrow money and then demanded that you pay me back the same amount of money plus interest (usury) – doubling your loss plus interest. What would you do? Would you bend over and take it? Would you work three jobs so that you can pay me back the money you loaned me plus interest? Would you go to jail (debtors prison) or give up your property to eminent domain and confiscation by the government (IRS) if I demanded that you pay me back the money that I owe you?
Well guess what folks? This is exactly what you are doing every single day of your American existence.
Every time you pay a tax, you are generating dollars for the government, which then turns those dollars into real wealth (assets) and charges you with the bill. Sometimes it even borrows the dollars from itself to build an asset for which it claims ownership of, and then nationalizes the debt of that self-induced loan to the people, collecting dividends on the interest that the people pay!
But that’s not all, folks…
For then, despite the fact that the people are still paying for the debt of the dollars it took for the government corporation to build that public asset (bridges, roads, buildings, etc.), it then sells that asset to private sector corporations for pennies on the dollar, and allows private sector corporations like Morgan Stanley to charge you the people such things as parking meter fees, parking garage and expressway fees, bridge tolls, and other profitable fees and collections for the infrastructure our fathers built with taxpayer money. And then the government uses that revenue generated by the sale of publicly funded infrastructure to buy or build even more public infrastructure, charging the debt to the people and retaining the asset (wealth), only to turn around later and sell the new asset for more dollars to build more infrastructure and accumulate more indebtedness for the people.
But the most important thing to understand is this:
These private sector corporations that are purchasing publicly funded wealth and then charging the public to use these services at the barrel of a gun, are only allowed to do so because government is the main shareholder of those public sector corporations. The government will get incentives, dividends, and returns on stock investments from the sale of public infrastructure, with the added bonus of being the main shareholder, thus having proxy shareholder voting rights which allow the government to pick and choose who the board of directors for each of its stock investment held corporations will be. The government appointed board then appoints the CEO, and is directed to bid on public infrastructure. Of course, the government then eliminates monopoly, anti-trust, and other protective regulations so that Morgan Stanley can charge as much as it wants for those parking meters it now owns. And government still gets to be in charge of the assets to ensure these corporations earn back their investment, a return that benefits both government and its investment held company.
And naturally this explains the advent of the Public Private Partnership…
And of the no-bid contract.
So, if you were this corporation posing as the United States government, would you allow the whole thing to just suddenly crash? Would you cease to double-tap the population for every dollar you spend while acquiring massive amounts of real wealth at their expense?
You might, however, transfer the whole thing over to an international conglomerate body under the guise of a global society (which you conquered via the forced use of the dollar as the world currency). And you might even replace the national dollar with an international one. Heck, you might even back that new dollar with gold, since you are the holder of 90% of the worlds gold, only to later crash the artificial price of gold and start the whole process over again. You might even crash the international dollar. After all, what if aliens invade? It will have to be a intergalactic currency then, eh? But I digress…
So would it matter if the dollar crashed?
Government only uses dollars to acquire real wealth. And rest assured that if government were to purposefully crash the dollar (it certainly wouldn’t be by accident, silly rabbit) the government would still be holding all of the wealth that it has purchased and sold through its corporate investments by using the dollar as a tool to acquire wealth and create public debt and dependance, including complete control of just about every corporation on earth – and of course the very land and home that you foolishly call your “private property”.
The only thing that would be missing would be those little paper and digital dollars, of which the government wouldn’t be holding a single one. Only the people would have the dollars (debt). The people would hold the unfunded part of the contract called the dollar. And the government would simply call upon its international banks (for which it holds controlling stock investment) and pretend to beg and plead for them to make a massive loan to the American Government on behalf of the people. And of course, the people – not the government – would be responsible for paying back that loan to the government stock investment held bank.
I submit that there is no possibility that the dollar can crash.
It can be devalued.
It can be replaced.
But the thing that the “dollar” truly represents, no matter what replaces it – the debt of the people to the government – will never crash and burn. The people of the world will always be enslaved to the currency that has the strongest military backing.
And so I ask of you, Mr. Stansberry – you who supposedly wishes to help people survive the coming economic and dollar “crash” – I ask of you and every other entity and corporation out there profiting from fear and usury, to stop promoting usury as a solution to usury. Be part of a revolution to dethrone the profit driven system instead of promoting it in such a deceitful way. Starve the system instead of funding its feeding time. Be a hero, not a villain.
For if your scenario is correct, sir, the hoards of poverty and hunger stricken people of tomorrow that your winning system has taken advantage of today will be knocking down the doors of your wealthy castle unless you help to feed and cloth them today. Shouldn’t that be what you should be selling?
Stop promoting usury!
Note to the reader: You have two paths to choose from at this point. Watch the infomercial and profit from the pain and destitution of others, or walk the righteous path and follow the teachings of the profits – help, feed, and teach those who need help, food, and education. For you cannot be wealthy in this system without many others somewhere else living in abject poverty to support your wealth. One path has a happy and long-lived story, the other will surely end in the destruction of us all. The choice is yours…
And Porter, I’d be glad to debate the topic publicly. I’m just a high school educated college dropout after all. Just let me know…
Sources for CAFR info:
P.S. Still looking for a job… anyone hiring that isn’t corrupt?
– Clint Richardson (realitybloger.wordpress.com)
– Tuesday, March 20, 2012