Video – The Creature from Jekyll Island (G. Edward Griffin)

This is a must watch video. If you really want to know how we got here, in the financial mess that we are in today, then you need to watch this video and understand exactly how we got here.

The Federal Reserve System is the greatest scam of all history – Because it is NOT:

  • Federal
  • a Reserve (there are no Financial Reserves)
  • a System (it is New York based – with the illusion of National presence)

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Mr Griffin sites seven reasons why the Federal Reserve System shoul be abolished:

  • It is incapable of acheiving it’s stated objectives
  • It is a Cartel – Operating against the public interest
  • It is the Supreme instrument of Usery
  • It generates our most unfair tax
  • It encourages war
  • It destabilises the economy
  • It is an instrument of Totaliterianism

It’s long weighing in at 105 minutes – but Mr Griffin is a master public speaker, a diligent researcher, and above all it is highly entertaining piece that everyone should hear.

And know this – You can watch/listen to this video much quicker than it took Mr Griffin the years of painstaking research, or ever to read his weighty tome as the same (which is a MUST read, btw ;-)).

Split it into two parts if you must, or more, but make sure you understand all that is in this great, great lecture.

A closing thougt from Mr Griffin:

Federal Reserve System does not need to be audited…  It needs to be abolished!


I hear you Mr Griffin!

Keep stackin’ – FPOW FarleyB

© Copyright MMXIII

Howard Marks – Investing in Uncertain Times

Howard Marks (no, not the Ganga smuggler) of Oaktree Capital has written some interesting (and hauntingly familiar) thoughts about investing in uncertain times. The note are from the university of oxford private equity institute private equity forum 2013 on March 5.

There are some interesting ideas here about the macro setting of your strategy moving forward from here. I think it would prove a useful exercise to review the points and check your own personal answers. For example – Setting your strategy:

Do you expect prosperity?

  • Yes -> leverage, equities, growth
  • No -> debt, value, less leverage

Which are you more concerned about losing?

  • Capital
  • Opportunities

About you and your strategy:

  • Aggressive and risk bearing?
  • Caution, conservative, risk control

See the full presentation here (PDF format): Howard Marks – Investing in Uncertain Times

© Copyright MMXIII

The First and Last Too-Big-To-Fail-Bank-Liquidation in History

Sign o the times - Lehmans going under

Lehmans Liquidation nearly brought down the whole global financial system

There are plenty of things to be worried about at the moment. Sometimes it
is like the Case of the Missing Central Bank Gold is pretty minor in
comparison. For example, the implications of the Lehman Brothers Event
are profound indeed.

The Lehman Brothers event was very unique indeed. One of a kind. It was the first, and the last case of a monster bank being liquidated and the central planners soon realised that they had chosen the wrong path here. This one bank in 2008 almost brought down the entire system. If the rumours were to be believed then we were within hours of the collapse of the entire global financial system.

For the first time we could see the real and decimated value of assets during a liquidation scenario in the 2008 environment. Anyone who has been close to any kind of bankruptcy or debt event knows that assets are worth nothing and no buyers. Credit supply was seizing-up and it was almost time for the end.

The Central Planners watched and learned. If you notice, there have been many other events, banks, countries, and businesses like since October 2008. But none have been allowed to fail. It would cause too much turmoil and destabilise too much infrastructure. The lesson learned here is that it would be much better to just kick the can down the road. The expression that we have heard so often now. Keep the illusion going for a bit longer. But how much longer? Days? Weeks? Years? Centuries? This is where we must do our thinking – how long have we got?

Greek austerity measure start to warm up

Greek austerity measure start to warm up

Reflect on all that has happened since – Greece, Spain, Portugal, Ireland, Italy, Dexia, Bankia, AIG, Fanny Mae, Irish Banks, Icelandic Banks, Northern Rock, and the handful of banks that quietly fail every Friday afternoon in America. All bar none, have been helped – no liquidation for them. It would be messy.

Witness Mario Draghi and his printing presses, EFSF, anything but actually let the problems die out. So we print more money, sell more bonds, and use the money to kick the can down the road again. But one day this will come to an end.

So I feel that we will not see any more BIG LIQUIDATIONS – They are just too dangerous – Let’s just draw out a long slow death instead.

This is the proof of QE to Infinity and beyond – Purchase your physical gold now while it is still in the 1,700 USD range – In a few years most people will be locked out from buying (if not already) completely – buy silver too. Buy BOTH, with both hands. Now.

Oh, an by the way – start thinking, planning, and taking massive action now – it’s the best chance of survival for us and the people we care about.

© Copyright MMXII