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See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Editor's Commentary: I love Brandon Smith's writing and the article below is no exception. By no means do I agree with everything he says, but even those things that I don't agree with directly, I can completely understand where he's coming from and why he highlights them. We are in the middle of our greatest financial crisis in decades, perhaps ever, and it seems the powers-that-be are making things worse intentionally.
On the latest episode of America First Report, I examined his article. Apologies up front for the sound quality. My mic settings were way off. There is good news, though. I heard the listeners who complained about my obnoxious intro music, so I changed it. My words are obnoxious enough (at least that's what Democrats and RINOs tell me). No need to be obnoxious with the intro music that's grating to the ears of patriots!
Here's Brandon...
I think one of the great misconceptions about economic crisis is that solutions are always dependent on centralized government action. In truth, most financial disasters are actually caused by too much government action and involvement. Central banks like the Federal Reserve are also primary culprits; as I outlined in last week’s article their machinations, which are independent of government oversight, fall into the category of deliberate sabotage. The Fed bankrolls corruption through fiat money creation while government officials and corporations utilize that money to wreak havoc on our living standards.
Ending the Fed would solve the fiat money problem, but there’s still a host of agenda driven politicians and bureaucrats to deal with before our nation can right the ship.
One clear way to fix our system would be to first force government to interfere less. As a point of reference, consider the common media narratives surrounding the covid pandemic. Along with the White House the media has been the premier driver of irrational fear over the spread of covid, which ended up being a minor threat compared to the hype as the average Infection Fatality Rate was no more that 0.27%. Yet, in response to a virus that was a mortal danger to less than one-thrid of 1% of the population, bureaucrats declared a national emergency requiring insane and unconstitutional lockdowns.
The lockdowns damaged the economy in ways people are only now beginning to comprehend, with hundred of thousands of small businesses lost across the country. Not only that, but the establishment responded to the economic implosion they created by printing over $6 trillion in new money through the Fed in 2020 alone. This helicopter money or beta test for UBI (Universal Basic Income) has expedited a stagflationary disaster and helped to push prices on necessities to 40 year highs (the official number).
The media claims it is “covid that is causing the crash,” but this is a lie. It was the RESPONSE to covid that is causing the crash. The virus was incidental to the economic sabotage initiated by governments and central banks. As we saw in conservative red states that defied the lockdowns and the vax mandates, economic activity thrived while leftists blue states suffered. And what did these blue states get in return for their economic sacrifices? Nothing. Covid infections continued to rage in blue states and deaths often outpaced red states with similar sized populations.
In other words, the lockdowns, the mask mandates and the attempts force vaccinations through medical tyranny saved ZERO lives and possibly made things worse. This is the legacy of government micro-management (And yes, let’s not forget that Trump went along with these lockdowns in the beginning of the pandemic also. Biden is just the dirt-bag that continued the measures despite the massive amount of evidence that they don’t work).
While the covid event illustrates my point in a big way, there are a lot of deeply rooted problems that government intervention has caused that add up to one big fiscal calamity. Many of these threats require a basic but sweeping return to fundamentals that government elites will rarely address and will try to stop at all costs. Here are just a few examples…
Inflation And Stagflation? Back The Dollar With Hard Commodities
The federal reserve and their minions have spent the better part of a century trying to convince the public that a gold standard for our currency is what caused the Great Depression and what could cause future depressions. They claim that limitations on money printing strangle liquidity and disrupt velocity. This is a lie.
Former fed chairman Ben Bernanke openly admitted in 2002 in a speech in honor of Milton Friedman that it was the CENTRAL BANK that actually caused the deflationary collapse of the 1930s, not the existence of the gold standard. This rare moment of truth from a fed official was perhaps due to the sheer amount of evidence that Friedman often cited that contradicted the original anti-gold propaganda. Or maybe it happened because the banking elites did not see Friedman as a particular threat, and figured no one among the public would read Bernanke’s speech anyway.
In fact, a commodities foundation held the American economy together for centuries until the Fed came along and the government slowly began removing gold from the picture. All subsequent economic crisis events have been exponentially worse ever since. When a commodities standard is employed, stability always follows. Just look at what has happened in Russia recently; their currency was on a downward spiral due to international sanctions, yet, when they reopened markets this past week the Ruble skyrocketed back to normal. Why? Because Putin had the currency coupled to gold. It’s really that simple.
The US and parts of Europe are facing their own inflationary disasters and this is largely due to the unchecked avarice of central bank stimulus and government spending. The ONLY way to secure the dollar’s existence as a stable store of wealth would be to back it with hard commodities like precious metals (among others). This might kill the dollar’s world reserve status because fiat printing would be impossible from that point on, but I got a news flash for those that hate the idea of grounding the dollar in commodities: We’re going to lose world reserve status anyway, and it’s going to happen soon.
One third of the world’s population including Russia, China and India are already breaking from the dollar in bilateral trade. The US might as well accept this is the reality and prepare to mitigate the coming currency collapse by supporting the dollar with commodities.
Oil Shortages And Energy Inflation? Stop Interfering With Oil Exploration
In early February of this year the Biden Administration made legal filings which halted new oil and gas leases including exploration due to conflicts over “climate costs.” This interference with America’s oil independence is only one of many instances starting with Biden’s sabotage of the Keystone Pipeline in 2021. Interestingly, with gas prices doubling ever since Biden entered office, the White House now claims that they have nothing to do with energy inflation and are not preventing drilling in the US.
During the same period Russia was establishing a decades long oil and gas contract with China and laying the groundwork for a major pipeline to be finished by 2025. And yes, China DOES in fact have the capacity along with India to absorb most of the oil and gas that might be shunned by Europe should they follow through with energy sanctions. Russia was planning ahead while the US was shifting from energy independence and net exporter status to once again becoming dependent on authoritarian regimes in the Arab world. Why?
Biden’s excuse is usually climate alarmism. The Earth’s temperature has only risen by ONE DEGREE CELSIUS in the past 100 years according to the NOAA, so the main argument against oil production in the US is based on the fallacy that man-made carbon has any bearing whatsoever on climate changes. But maybe the carbon fraud is just a distraction from something else?
To fix any supply and demand issues in the US, we only need to start producing once again at levels which were easily obtainable in 2020. But what if the issue of supply contraction is not the main cause of oil inflation? I would note that the dollar is not only the world reserve currency but also the global petro-currency. Until recently, almost all oil was traded internationally using dollars. The decline or collapse of the dollar’s buying power due to money printing and runaway inflation is more likely the direct cause of rising oil prices, and supply issues are secondary.
If the dollar was about to collapse due to inflation, oil would be one of the first early warning indicators. With the establishment blocking new oil production and hindering the most cost effective method for oil transport (pipelines), an engineered decline in supply becomes a very effective smokescreen for the death of the dollar. The crisis caused by the government and the Federal Reserve’s currency destruction could then be blamed on supply chain issues and climate “peril.” This is the reason why the establishment will not allow any future growth in US oil production. They cannot allow the public to realize the precarious position our currency is in.
Supply Chain Interdependency Leading To Shortages? Bring Back Manufacturing
There are a lot of reasons why manufacturing has left the US, from greedy and corrupt labor unions driving up wages to higher taxes and land costs to extremely cheap shipping from overseas exporters. There is also the theory that US factories were outsourced to places like China in order to deliberately force the public into a global interdependency scheme. In other words were are stuck with the supply chain we have, not because it’s the best system, but because the globalists want it that way.
It’s unlikely that the federal government and the elitist establishment would ever allow real manufacturing to come back to the US in a way that would make us more self sufficient. As long as our country relies on outsourced goods and raw materials from other nations we remain beholden to the global chain for our survival. Being completely independent might be impossible, but we could be producing far more domestically than we are today.
State governments could create incentives to manufacture within their borders by removing property taxes, reducing state taxes and protecting businesses from certain federal obstructions such as carbon restrictions. As long as those companies do not support anti-freedom initiatives with the money they make, they should be aided so that real jobs and real production make a comeback in the US.
I would also note that if states want to survive the coming financial crisis that is about to strike, they are going to have to start ignoring federal restrictions on land use and the production of raw materials (like oil or coal). Some environmental rules are good, but some are pointless and are only designed to control rather than protect. States will have to stand in defiance of these rules if anything is going to change for the better.
Debt And Liquidity Crisis? Let States Establish Their Own Banks And Currencies
The state of North Dakota has an interesting model for economic independence, which utilizes a state sponsored bank designed specifically to help businesses in ND. I would say it’s bizarre that this idea has not become popular across the nation, but I understand that if it did the federal government and the central bankers would be very unhappy.
Here’s the thing, while it is true that the constitution explicitly states that the US Treasury be the only issuer of US currency, this was done at a time when our currency was backed by gold and silver and there was no corrupt middleman in the form of a central bank. In truth, the Treasury is now second fiddle to the Federal Reserve, and the constitutional regulations on money have already been broken. It’s time for a new currency model and new banking model.
An official bank in each state could decentralize power away from the Federal Reserve in terms of how debt and interest rates are handled, creating something closer to free market discovery of interest rates rather than a rate dictatorship control by the Fed. By extension, each state could also issue currency scrip legal for use only within the borders of those states. This would create a secondary safety net against inflation in the dollar.
In other words, we decentralize the banking system and we offer state alternatives which function not so much as competing currencies but as parallel or complementary currencies backed by and exchangeable in certain commodities. I believe very strongly that this model (along with a couple dozen other measures I don’t have space to cover here) could save our country from decades of economic mismanagement and bring us back from the brink of inflation and debt catastrophe.
States could do this without the permission of the federal government or the Federal Reserve, but I have little doubt that the elites would be in an uproar. Make no mistake, states will have to move to decouple from the national financial system and build alternatives as soon as they realize that the dollar is tanking and stagflation is here to stay. And when they do, the establishment will declare such actions on par with “insurrection.”
In the meantime, there are numerous preparations each individual can make in their local communities to insulate themselves from economic dangers. There are those that will say that local measures are only a stop gap and more national action needs to be taken. They are partially correct; in the long run there needs to be wider organization towards free markets once again, along with redundancies in state economies. In the short term we must do what we can.
Ultimately, the most clear solutions to our fiscal fate are not pursued because the elites do NOT WANT to save the economy, at least not in a way that ends up with them having less power. They want even more power and centralization that extends beyond national boundaries into the realm of global management. Fixing the system can’t happen because they won’t let it happen.
This means that the fix that will save us in the long run will be the one that allows all others to progress; and that fix is to remove these people from positions of influence and authority. You can’t really repair the body in the wake of an illness until the offending disease is eliminated. For now, all we can do is keep the country on life support until a cure is applied.
There were three primary purposes for Pandemic Panic Theater. The first was a power-grab from a scared population that begged to be saved from a disease that was supposed to kill tens of millions in the first couple of months alone, based on the initial projections. The second was to destroy western economies. The third was to compel people to be injected with "vaccines" that may have a far more nefarious intended use than to stop the spread of Covid-19.
So far, their missions have been accomplished. But that first purpose, the power-grab, has been fading in efficacy as the people have finally started pushing back enough to scare authoritarians into relieving restrictions. Granted, they weren't really "scared" and it may just as easily be part of the plan to temporarily release restrictions so they can double up on them later, but for now those powers have been used less in recent months.
But just as the false threat of the pandemic was used to acquire more powers, so too are the real threats facing us today being used in the same way. One such problem is the supply chain crisis and Georgia's RINO Governor, Brian Kemp, is trying to take full advantage of this.
On today's episode of the America First Report, I dove into the article below by Aden Tate over at The Organic Prepper to reveal why power-grabs like these are wrong and what needs to happen to stop them.
Georgia Declares a State of Emergency Over Supply Chain Shortages
Things have apparently gotten so bad in Georgia that the governor has now declared that the state is living under a state of emergency due to supply chain shortages.
Republican Brian Kemp decreed this executive order on April 14, stating that covid was the reason for all economic distress and supply chain issues within the state of Georgia. Kemp locked down Georgia at the beginning of 2020, and Georgians received another notification in November 2020 that they would be locked down again for another two months.
The unconstitutional lockdowns aren’t mentioned within the executive order as being the cause of the economic woes of the people of Georgia.
Does Kemp now have unlimited powers?
From the wording of his executive order, it appears so.
As he cites within the order, Code Section 38-3-28 says that “all orders, rules, and regulations promulgated by the Governor” have the force and effect of law. This gives the appearance that Georgia is no longer ruled by law but instead by decree.
The order cites Code Section 38-3-51, saying that Kemp now gets to “assume direct operational control of all civil forces and helpers in the state” and that he can do whatever is “necessary to promote and secure the safety and protection of the civilian population.”
At the moment, do the three branches of government exist within the state of Georgia? From the wording of this executive order, it appears as if there is the executive branch, and that is it.
Price gouging is now considered to be illegal.
No specific rate of markup is defined to delineate what exactly price gouging is. I suppose that this is left up to the discretion of whoever shows up to enforce this new order? Will the shop owner have to prove how much he paid for an item to avoid being fined and/or being sent to jail? Will shop owners be forced to accept lower profit margins than they are used to in order to avoid being labeled a price gouger? What will this do for businesses?
To help with the supply chain problems, it was apparently thought that there needed to be longer hours for truckers. Part 395 of Title 49 of the Code of Federal Regulations – the part that dictates how many hours a semi-truck driver can operate his rig has now been removed from Georgia as well. A clause was added to explicitly state that no carrier could force any of their truck drivers to work when they were either ill or fatigued as well.
At the very bottom of this executive order, Kemp added that if any part of the order is found to be “in violation of the Georgia Constitution, in violation of Georgia law, or unenforceable in any respect, such invalidity, violation, or unenforceability shall not affect any other provisions of this Order, but, in such case, this Order shall be construed as if such invalid, illegal, or unenforceable provision had never been contained within the Order.”
As things stand, this state of emergency is slated to last for the next 30 days unless things magically get better in Georgia before then, in which case, the order will be lifted early.
The full executive order can be read HERE.
(Sounds like a good time to read our free QUICKSTART Guide to emergency evacuations, if you ask me.)
This is likely the first domino to fall.
There is no reason to believe that there won’t be more states to make similar proclamations in the near future. There’s no reason to believe that just by extending the number of hours that a trucker can drive that there will be an easing of the supply chain issues within Georgia within the next 30 days either.
The current supply chain issues are multi-factorial, and there’s no reason to believe that squeezing three to five extra hours per week will just cause things to get better. If there’s no product, to begin with, there’s nothing to ship.
Let Georgia serve as the canary in the coal mine for you.
Being in the middle of the South, Georgia is typically considered to be a relatively conservative area (minus the city of Atlanta). If the governor there is willing to give an executive order that appears to drastically expand his powers and seemingly shutter the other branches of government, what could happen in your state?
If supply chain problems can lead to a state of emergency being declared that dictates how much you can charge for an item, how long will it be before further measures are taken in Georgia? Once it is realized that extended trucker hours don’t help when inflation has wrecked the economy, what next steps will be taken to “solve” the crisis? Will confiscation of privately-owned food from “hoarders” be used to fight the crisis? Will further powers be granted to Georgia’s governor? Perhaps gas rations will come into place? What do you expect to see?
Whatever comes next, I can tell you one thing: I don’t think you’re going to like it.
(I mean, I like cream cheese as much as the next guy, but drafting an entire executive order for supply chain issues? It just seems a bit excessive to me.)
About Aden
Aden Tate is a regular contributor to TheOrganicPrepper.com and TheFrugalite.com. Aden runs a micro-farm where he raises dairy goats, a pig, honeybees, meat chickens, laying chickens, tomatoes, mushrooms, and greens. Aden has three published books, The Faithful Prepper, The Prepper’s Guide to Post-Disaster Communications, and Zombie Choices. You can find his podcast The Last American on Preppers’ Broadcasting Network.
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I’ve always ebbed and flowed between optimism and warning when it comes to the United States economy. I saw disaster coming in the early years of the Clinton administration, but then acknowledged that the rising digital economy may be a reprieve if Clinton didn’t muck it up. The Bush years reinvigorated my concerns as the “Republican” engaged in idiotic fiscal liberalism to compensate for his wars in the Middle East.
The Obama regime was an absolute disaster for the economy, but I didn’t think we were doomed. We weren’t. Donald Trump’s economic policy set the groundwork for a recovery that, if followed and enhanced over years and decades, could reestablish something close to the solid financial footing we had in the years following World War II.
Then, Pandemic Panic Theater prompted two weeks to slow the spread which, of course, turned into two years of lockdowns. Adding insult to injury, the powers-that-be installed Joe Biden and Kamala Harris into the White House, at which point I became more concerned than I’d been since Obamacare was passed.
The reason I spent these first few paragraphs setting the stage for the meat of the article is because it's important that readers understand I haven't been screaming about economic collapses for years. I've often tried to calm others down who thought we'd all be in breadlines at any moment as far back as the early 1990's. Our economy has been vulnerable due to very poor fiscal decisions since the 1970's but I've always felt we could fight for better policies and turn it around.
Today, I'm not convinced that's even possible. Today, I'm joining the ranks of those who believe economic collapse is imminent.
On today's episode of America First Report, I discussed the article below from Free West Media. It's an eye-opener, so much so that I chose to sacrifice part of my Easter day off to get the show out. We're in the strangest of times and it behooves us all to start making strong personal decisions about our own financial future. Even if the dollar sinks and the economy starts tanking, we can take measures now to get ahead of it as best we can.
One of those moves is to buy physical precious metals. I recommend our sponsor, Our Gold Guy, for this. To be clear, I have passed up on over a dozen other precious metals companies because I simply couldn't trust them with my audience. Our Gold Guy is the first and only one I would trust to buy my own precious metals, and they're the ones I recommend for my readers and listeners to use.
Here's the article from Free West Media:
A New Financial World Is Born
Even if this is not the birth of a new world order, at least it will be the birth of a new financial one. Such a turning point was proclaimed by Zoltan Pozsar, interest rate strategist at the major Swiss bank Credit Suisse, in a widely acclaimed paper of March 7 entitled “Bretton Woods III”.
Pozsar is not an outsider. In his position at the New York Federal Reserve and as an advisor to the US Treasury Department, he had insight into the background and processes behind the great financial crisis of 2008. He knows the strengths and weaknesses of the dollar system. The foundations of this system, he noted, crumbled when the West confiscated Russia’s foreign exchange reserves.
Why is the freeze on Russia’s foreign exchange reserves a game changer?
Freezing, or rather confiscating, Russia’s foreign exchange reserves annuls the rules of procedure of Bretton Woods I and II, namely the security and availability of foreign exchange reserves. Unlike gold, the dollar and euro are not physically tangible – apart from cash – but only booked on the computers of the Western banking system.
In China’s case, it’s the equivalent of $3 400 billion. India has accumulated 632 billion, Saudi Arabia 441 billion. In the worst case, could these funds also be blocked and thus become useless? Of course. After all, US President Joe Biden has already described the Saudi monarchy as a “pariah country”. So it makes sense to increasingly decouple Chinese, Arab and Indian foreign trade, not to mention Russia, from the dollar.
Whether it is correct to announce a new monetary world order as a Bretton Woods III, remains to be seen. Either way, the world has become multipolar, ironically because of the Biden administration’s short-sightedness. Bretton Woods I, named after a conference in New England at the end of the Second World War, established the hegemony of the dollar and at the same time underpinned the world power position of the USA.
America went from creditor to debtor
The US currency was linked to gold and exchangeable for gold at any time foreign central banks deposited their dollars in New York. The dollar was gold-backed money – until August 15, 1971, when President Richard Nixon broke the treaty, refused to pay and ended convertibility.
Bretton Woods II followed, with the inflation and currency chaos of the 1970s, with two decades of stabilization, with new American wars after the turn of the millennium, and with the near-death of the system in the 2008 financial crisis. But even without gold backing, the dollar remained the world’s leading and reserve currency. The arrangement allowed Americans to permanently live beyond their means, to have wars and consumption financed from abroad. The budget deficits and the deep-red trade balance went unpunished.
America, once the world’s creditor, became its debtor. The government debt of the “wealthy” country was recently at a fantastic 30 trillion dollars. The fact that the dollar has been appreciating against the euro for years is not a sign of quality, but is due to the fact that the euro is an open-ended experiment, not an established currency. Both are heading into a commodity-induced tsunami of inflation this decade, against which the monetary debasement of the 1970s might look like a mediocre event.
France repatriates gold
In 2013 the German central bank was the first to announce it would repatriate gold from France as well as the Federal Reserve Bank of New York. After Germany, other countries such as the Netherlands and Austria followed by repatriating the precious metal.
France’s central bank sees a huge potential for gold, expecting it’s role in the financial system to increase. “Why else upgrade all the French gold, overhaul the vault, set up a new IT system, and develop a full set of trading services for foreign central banks in Paris?” said Jan Nieuwenhuijs, gold analyst.
The core element of the Chinese strategy
Zoltan Pozsar makes an important distinction: that between inside money and outside money. The first is the money at the center of the global financial system, the dollars and euros circulating in the USA and the EU that can be multiplied at will. Outside money is the money of the countries on the periphery, which, in addition to Russia, also includes China, India and other emerging countries. Almost unnoticed by the public, the Brazilian real has appreciated by 20 percent against the euro, the Chinese yuan by almost nine percent and the South African rand by almost seven percent in the past twelve months.
Dethroning King Dollar is undoubtedly a core element of China’s strategy. As early as 2020, the People’s Bank of China was the only major central bank that failed to open the money floodgates because of Corona. It decided to maintain a strict monetary policy. Now the People’s Republic has the unexpected opportunity to buy and hoard Russian raw materials – especially oil – at far below world market prices and thus strengthen the resilience of the Chinese economy. Beijing will come closer to the goal of a multipolar currency order, perhaps also with the introduction of a digital yuan.
US share of world trade falls
There will be Saudi oil sales against yuan, Chinese oil imports against rubles and a gradual switch from the American-controlled payment system Swift to the already established Chinese counterpart. That will not happen overnight, after all it took a while for the British pound to give way to the American dollar. The oligarchs of the periphery must be extremely worried after they witnessed how the foreign assets of the Russian billionaires were practically expropriated overnight without any legal basis. They will want to diversify as soon as possible.
History has shown that ultimately, political and financial power relations always follow economic clout. The signs point to a multipolar world order, possibly also – after an inflationary collapse – to a monetary reorganization with money backed by commodities or gold, spelling the end for the only current world power.
Although 40 percent of international trade in goods is still invoiced in dollars, America’s share of world trade has fallen to less than 10 percent. In 1960, the USA accounted for 40 percent of the world’s gross domestic product. Now it’s less than 16 percent. In the world of tomorrow, EU policies, which are currently aimed at the destruction of Germany’s industrial base, are not the answer.
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