TaoEconomics

I've been studying economics daily for the last 7 or 8 years (and I do mean daily, aside from vacations and some weekends). I found Austrian Economics through the Daily Reckoning (I have them linked on the left nav) back in 2001. I was curious about the stuff in our wallets we called money and the central bank it came from. I can assure you that the single most important topic on this entire earth is central banking, and the only person in congress (or in DC for that matter) that is talking about it is Ron Paul. I know there are a lot of important topics out there, but I can 100% insure you that central banking is more important then any of them.

People are waking up to this fact right now. Its taking a big credit disaster to do it, but people are realizing that they need to know this stuff. Its not hard to learn at all. Start yourself off by watching this video, and it will explain how it works. You may have already seen video's on the FED, but this new one nails it perfectly and its good to have a re-cap if you aren't new to this.

http://video.google.com/videoplay?docid=7065205277695921912

Yes, I have taken a few economics courses and I can assure you that this video is accurate. Your economics professor will actually teach you the same thing, however they will pull out some important facts or maybe step around some things if you ask the right questions. They do believe that this system works mostly fine (I'm sure they are having second thoughts now). I don't believe they are purposely trying to feed you lies or anything, but that they are sincere in their belief that this central banking system is workable.

Once you watch the above "Zeitgeist: Addendum" movie link, you will then be able to start to see that a gold backed currency is actually anti-war. And that a gold and silver backed currency is better on the environment, and if it isn't controlled by a central banking system it is even better on the environment and for the people. Those may sound like radical statements and you may not believe that at first, but it is true. I will touch more on this in a later article.

So how is central banking a cartel? Well what is a cartel exactly? from wikipedia: http://en.wikipedia.org/wiki/Cartel

"A cartel is a formal (explicit) agreement among firms. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products. Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies, and the division of profits or combination of these. The aim of such collusion is to increase individual member's profits by reducing competition. Competition laws forbid cartels. Identifying and breaking up cartels is an important part of the competition policy in most countries, although proving the existence of a cartel is rarely easy, as firms are usually not so careless as to put agreements to collude on paper.[1][2]"

OPEC is the most well known cartel. Countries get together collude and agree to fix prices, and how much output of oil they will produce.

And what does a central bank do? They have member banks who use the Federal Reserve to collude to fix prices in the form of interest rates (the federal funds rate) and output or how much money is going to be created. THIS IS NOT FREE MARKET! It leads to distortions and mal-investments in our economy. To many houses were built because this cartel (in the form of Alan Greenspan) artificially lowered rates that was not determined by any market and pumped a bunch of money into the system. Building a house just so you know is VERY intensive on the environment (for all you environmentalists out there).

So who are the member banks? Well we don't know for sure, but with this banking implosion it allows us to see who is behind the curtains. JP Morgan Chase helped create the Federal Reserve back in 1913, and now they just bought Wamu. So that one is an easy one. Now we have Bank of America buying out others as well as Citi bank. The banking firms that survive this collapse in credit are more then likely the ones that are really pulling the strings at the Federal Reserve.

We are paying our interest to these banks. And if you watched the movie you will have found that the money for the interest doesn't exist! That it why there will always be people who don't make it. Someone is guaranteed the shit end of the stick.

Are you tired of stepping over you brother in the street just to make it up a notch higher on this pyramid? Are you tired of war? The reason why your congressman doesn't look at this stuff nor actually cares is because they made it! They have great pay and retirement packages. They don't even have to pay social security. The do not have to work as hard as you do. They know they won't be the ones that get shafted.

Here is the good news. Last Monday (on the 777 drop) was amazing, because it show that for the first time politicians are listening. Yes, they voted for the bailout bill the second time because they got freaked out by falling stocks, and they are already in the pocket of big finance. But they are listening and now is the time to act!!

Here is what you do. Email or mail your senators and your congressman or any other public official for that matter. Enclose the above movie. Tell them that it is imperative for their understanding of why we are having this banking and economic collapse. Also tell them that it will guide them on how to change it. Then tell them that they must support the two bills that Ron Paul has introduced.

Tell them to support and push through as fast as they can "H.R. 2755: Federal Reserve Board Abolition Act" (http://www.govtrack.us/congress/bill.xpd?bill=h110-2755) and "H.R. 4683: Free Competition in Currency Act of 2007" (http://www.govtrack.us/congress/bill.xpd?bill=h110-4683)

If you act on this right now and don't delay. We have a chance of saving our Republic, freeing ourselves from enslavement, and adding more people to the fight.

PS.

Jim Sinclair made a good point last week that well make you pause and think, "All those that the community loves to hate and blame for every reaction in the long term gold market are the ones who own most of the gold. Do you ever ask yourself who buys the gold from central banks not bought by other central banks? Do you ever ask yourself who is on the long side of all those short of gold producer hedges?"

Jim was refering to this article: http://www.forbes.com/afxnewslimited/feeds/afx/2008/09/29/afx5481830.html
"The Swiss National Bank said on Monday it had concluded the sale of 250 tonnes of gold, announced in June 2007, and said it had no plans for any further gold sales."

Who is buying all that gold? Think of the opportunity the elite will have when companies and assets hit fire sale prices and they will just swoop in with the real money they hoarded (gold) and buy everything up.