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Inner freedom comes first

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from Brandon Smith
Alt-Market
Posted September 2, 2011

IS FREEDOM A PLACE, OR AN IDEA? A STATE OF SOCIETY, OR A STATE OF MIND? Does it begin around us, or within us? In today’s world of the all-you-can-eat sensory buffet, where every facet of life is a bit and a byte and a radio wave and a laser beam, most of humanity looks for all of its answers to such questions in the grand ether of the tumbling data stream.

We see changes in the tapestry of cultural interaction as the final measure of national progression, or regression. We confuse forward sounding language with forward moving political transformation. We are mesmerized by the illusion of environmental appearance, and forget that the indelible root of all things outward is nurtured by that which lay within.

In America, in the midst of economic crisis and government driven moral hazard, millions of people are scrambling for “solutions”. The term is used rather haphazardly and often without proper context. There are, indeed, very evil men out there in the dark precipices of global infrastructure, and, these men often instigate very bad events. However, “doing away with them” is NOT a solution. It is NOT a plan. It is merely a goal. A solution requires more than an end result; it also involves the steps necessary to achieve said result.

The Liberty Movement, as it is commonly called, tends to run into so much frustration and angst, I believe, because it consistently attempts to skip to the end of the story without traveling the rest of the very necessary journey.

End the Fed! Sue the Fed! March on Washington! Vote the bums out! Take up arms! These are not actions, but reactions triggered by the confusion of the moment. Not only are they single minded responses that lack the strategy and logistics inherent in a successful counter-offensive, but such cries ignore the other devious culprit responsible for our national heartache; ourselves.

Yes, the world must change, and soon, if our principles are to survive. But, for this to happen, we must change first. Instead of looking up, down, and all around us for some magical all encompassing answer, we have to question our very assumptions and world views. No weapon of steel or of law will ever undo the tragedy we live in day to day while we lack the conviction to confront our own biases and failings. We have always been the greatest obstacle to a truly freedom based society, not the elites, who are nothing but parasites feeding off our willfully perpetuated inadequacies.

Working methodologies for combating globalization and centralization do exist. State nullification, for instance, is a significant tool for defusing obtrusive federal authority, but without the organizational willpower and perseverance to take back the now thoroughly corrupt election process county by county, state by state, while producing viable liberty minded candidates and grassroots activist groups, nullification is impossible.

Survival preparation is essential for anyone who wishes to decouple from the collapsing mainstream system, but without the determination to make prepping a reality, we are left with nothing but a bunch of hungry, desperate nobodies huddled on the sidelines of the war for truth. Barter networking and alternative markets require extensive patience and unerring dedication, along with constant self education on the processes of sound money and private trade. Safe Haven and Free State Projects push us even harder, requiring us to uproot from everything we have been conditioned to accept as normal and comfortable, and travel, perhaps long distances, to begin anew in a place likely unfamiliar. All of these things involve an internal finality of purpose, a clear and unwavering path unhindered by regret. Those who undertake the above initiatives do so not because they were “told to”, but because they know, above all else, that what they are doing is right. They no longer stand in their own way, and thus, the possibilities become infinite.

For others, the endless circular battle between action and apathy continues. Below, are some of the most frequent excuses uttered by those aware of the burgeoning dangers of a disintegrating culture but who are incapable of taking the first steps of inward freedom needed to do anything about their predicament…

1) I know things are getting bad in this country, but I only have time to focus on my own problems right now…

Your immediate problems are certainly yours to solve, but they are also very likely an aftereffect of the wider problems of the world around you. Ironically, only by taking personal responsibility for the problems of the world can we alleviate the incredible pressures of our microcosmic existence.

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DB Briefs: Danger of a deteriorating social mood / China’s shifting economic sands / Is bank recapitalization the answer?

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from The Daily Bell
Posted August 30, 2011

The deflationary hurricane of deteriorating social mood

Deteriorating social mood is like a very slow-building, very slow-moving hurricane: The longer it goes on, the stronger it gets. And while some policymakers may be praying like St. Augustine for chastity, and others for a book of dry matches, I’d be moving to higher ground to stand on. The path I am most worried about is not the long-term sustainable inflationary economic one, but the much nearer-term deflationary storm path that comes with deteriorating social mood. For the northeast, Irene may have now passed. But for all of America, there is another, much bigger storm that bears watching closely. – Minyanville.com

Dominant Social Theme: Everything is OK and don’t you worry. The elites know how to handle the economy, and you will retire rich, even if you don’t think so now.

Free-Market Analysis: The writer of this article, Peter Atwater, has hit upon a kind of anti-meme. He believes that “Everything we [in the West] need to do for long-term economic, if not societal, success and stability comes with very severe short-term consequences.” And thus it has not been done. Fed Chairman Ben Bernanke‘s monetary stimuli are not the answer, he argues. More radical solutions are required. What is necessary is a severe reinforcement of economic “chastity.” Banks must be strengthened; nations must cease to spend; citizens must accept austerity.

Of course, this is a power elite theme of itself: that the larger world (and Western) economy is an irresponsible one and that the West’s leadership has proven inadequate to the task. Here at the DB, we disagree. The issue is not austerity or cost-cutting. Responsible leadership in our view is that which demands an end to the elite’s ruinous central banking economy and a return to some sort of competitive money, which would inevitably feature silver and gold.

Somehow, despite Atwater’s concerned gloom, we don’t sense he’s ready for the really radical reconfigurations necessary to build healthy economies. He apparently feels that reshuffling the proverbial deck chairs is a revolutionary act.

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China’s shifting economic sands

Is China’s economic miracle built on sand or cement? It won’t exactly make world headlines, but in the Chinese port city of Dalian there was another accident today in the city’s sprawling petrochemicals development zone. This time a fuel tank caught fire in an oil refinery belonging to state major PetroChina. This is the same city, you’ll remember, that was hit by serious protests a fortnight back after a paraxylene chemical plant was nearly breached by a storm surge caused by a passing typhoon. In that case, the local government caved in and agreed to shut down the plant. What’s amazing – and disconcerting for many living in Dalian – is that this is the FOURTH major safety alert in the petrochemicals complex in the last 12 months or so. – UK Telegraph

Dominant Social Theme: Don’t worry about China. This is one powerful and far-sighted country.

Free-Market Analysis: This article in the Telegraph about China is an interesting one because unlike many mainstream articles it dares to ask the question whether the “Chinese Miracle” is nothing but hype and the proverbial madness of crowds.

Every night when he goes home to his Beijing apartment, the author writes, he catalogues the way that the apartment is “quietly crumbling.” Look carefully, he writes, “and you’ll see the flagstones in the public areas are subsiding drunkenly, the access road to the rear is shot to pieces, the bathroom fittings are corroding and the façades are starting to peel. With an apartment that hardly matters, but when it comes to railways, bridges, petrochemical complexes, 40,000 dams (as my colleague Malcolm Moore reported this week) and even nuclear power stations, we’ll have to pray higher standards have been enforced.”

Actually, the article’s feedback comments are even more alarming, speculating that the same sort of sloppy construction may doom modern Chinese dams to catastrophic failure within the next ten years. As for domestic harmony, we find the article has generated the following feedback from Scott Jensen: “In 2005, China stopped publicly reporting how many riots occur each year in its country because the rate of increase was rapidly increasing year after year. Some now speculate there are at least 120,000 riots in China a year. That’s over 10,000 a month.”

We’ve been writing about the demise of the Chinese Miracle for several years now. And articles like this one only reinforce our conclusions. China’s old communist leaders simply don’t know what to do. They’ve thrust China into the modern era, but in a manipulative and controlled way (see Sino-Forest Corp.) that is merely storing up problems for the future. Eventually, the dam is likely going to break – metaphorically and in reality. The catastrophic results may shake the world.

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Is bank recapitalization the answer?

European banks set cash test by IMF chief … European banks face ordeal by fire this week after the International Monetary Fund called for “urgent” action to shore up their defences, if necessary with state money and under legal compulsion. Recovery is in danger if we don’t shore up defences, says Christine Lagarde – UK Telegraph

Dominant Social Theme: Strengthen the banks to strengthen the EU.

Free-Market Analysis: One of the problems with gaining Christine Lagarde as the IMF’s new chief, is that she seems to believe it is incumbent on her to be vocal about the Western economic system. Thus, she set off what the Telegraph calls “tremors” at a recent financial conference by warning that the global economic system was on “thin ice.”

“We are in a dangerous new phase. The stakes are clear: we risk seeing the fragile recovery derailed, so we must act now,” she said. “Banks need urgent recapitalisation. If it is not addressed we could easily see the further spread of economic weakness to core countries, even a debilitating liquidity crisis. The most efficient solution would be mandatory substantial recapitalisation,” she said.

Lagarde is a lawyer by training, so perhaps we should give her the benefit of the doubt. But such warnings are merely part and parcel of a larger elite charade in our view (and Lagarde now works directly for the elite). The “reserves” a bank holds in the modern era are nothing but paper certificates. It is difficult to see how holding more or fewer of them contributes to a bank’s solvency.

If she were to demand that banks hold gold or silver reserves, we would be more impressed. But that would be too sensible. Instead, she will no doubt continue to offer this sort of nonsensical rhetoric. In the age of central banking, a bank’s solvency is far more dependent on the largesse of central banks.

If Lagarde were truly sincere about bank recapitalization, she would examine the linkages between central bankers and their commercial banking brethren. Those with the strongest relationships would been seen as having the healthiest banking prospects. No doubt, this is an overly cynical recipe. But it is a realistic one.

The top five places NOT to be when the dollar collapses

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by Silver Shield
Posted June 23rd,2011

http://dont-tread-on.me/top-5-places-not-to-be-when-the-dollar-collapses/

THE DOLLAR COLLAPSE WILL BE THE SINGLE LARGEST EVENT IN HUMAN HISTORY. This will be the first event that will touch every single living person in the world. All human activity is controlled by money. Our wealth, our work, our food, our government, even our relationships are affected by money. No money in human history has had as much reach in both breadth and depth as the dollar. It is the de facto world currency. All other currency collapses will pale in comparison to this big one. All other currency crises have been regional and there were other currencies for people to grasp on to. This collapse will be global and it will bring down not only the dollar but all other fiat currencies,as they are fundamentally no different. The collapse of currencies will lead to the collapse of ALL paper assets. The repercussions to this will have incredible results worldwide. (Read the Silver Bullet and the Silver Shield to protect yourself from this collapse.)

Thanks to the globalization and the giant vampire squids of the Anglo-American Empire, the dollar is the world’s reserve currency. It supports the global economy in settling foreign trade, most importantly the Petro Dollar trade. This money is recycled through the City of London (not to be confused with London) and New York. This fuels our corporate vampires that acquires and harvests the wealth of the world. The corporate powers suppress REAL assets like natural resources and labor to provide themselves massive profits. This Fascist, Statist, Collectivist model provides the money into the economy to fund an ever increasing federal government. That government then grows larger and larger enriching its minions with jobs to control their fellow citizens. Finally, to come full circle, the government then controls other nations through the Military Industrial Complex.

This cycle will be cut when the mathematically and inevitable collapse of the dollar occurs. In order for our debt based money to function we MUST increase the debt every year in excess of the debt AND interest accrued the year before or we will enter a deflationary death spiral. When debt is created, money is created. When debt is paid off, money is destroyed. There is never enough to pay off the debt, because there would be not one dollar in existence.

We are at a point where we either default on the debt, willingly or unwillingly, or create more money/debt to keep the cycle moving. The problem is if you understand anything about compounding interest, we are reaching the hockey stick moment where the more debt that is incurred, the less effective it is and this leads us to hyperinflation. There are only two actors needed for this hyper inflation, the Lender of Last Resort, the Fed,and the Spender of Last Resort, the government. These two can, and will, blow up the system. I believe they will wait until the next crisis and the whiff of deflationary depression before they fire up the printing presses. That crisis is coming very soon at the end of this summer or fall. The money and emergency measures are worn out. The fact is that NONE of the underlying problems that caused the 2008 crisis have been resolved. The only thing that has happened is that instead of corporate problems, we now have nation problems. In this movie Greece will play the role of Lehman Brothers and the United States will play the role of AIG. The problem is there is nowhere to kick the can down the road and there is no world government to absorb the debt, yet…(Problem,Reaction,Solution.)

So this leads me to the top five places not to be when the dollar collapses:

1. Israel- This Anglo-American beach head into the Middle East was first conceived by the most powerful family in the world,the Rothschilds, in 1917. The Balfour Declaration said that there will be a Zionist Israel years before World War Two and the eventual establishment of Israel. Israel has not been a good neighbor to its Muslim nations and has always had the two biggest bullies on the block at its back. When the dollar collapses, the United States will have much too much on its plate both domestically and internationally to worry about such a non-strategic piece of land. This will leave Israel very weak at a time when tensions will be high. This very thin strip of desert land will not be able to withstand the economic reality of importing its food and fuel or the political reality of being surrounded by Muslims.

2. Southern California- The land of Fruits and Nuts turns into Battlefield Los Angeles. Twenty million people packed into an area that has no water and thus food is not good to say the least. Throw on top of the huge wealth disparities and the proximity to a narco state and this does not bode well. We have seen riots for Rodney King, what will happen when the dollar is destroyed and food and fuel stop coming into this area? People will get desperate and do crazy things, especially when a huge proportion of its citizens are on anti-depressants. If food and fuel cannot get in, what about Zolfot? At a time when the world is falling apart, they lack the ability to deal with this new paradigm. If people come off of these drugs too fast they suffer psychotic breaks and you will have thousands of shootings or suicides.

3. England- The Land of the Big Brother and former Empire of world wide slave and drug trade will suffer heavily. The stiff upper lip that their the British Elite ingrained into their sheeple will not work any more as the British population explodes. The human character will sacrifice and unite for a foreign enemy, but not if the enemy has always been the Elite. The Anglo-American Empire may pull off another false flag to distract its population on another Emmanuel Goldstein like in 1984, but I feel this collapse will happen before they pull it off. This will make all eyes point at the British Elite as solely responsible for this catastrophe. We have seen massive riots for soccer matches with hooligans. What will happen when this island with very little food and fuel gets cut off?

4. New York City- Another large urban area living too high on the dollar hog. NYC is the area I moved out of in 2008. There is little doubt that all of the wealth in New York, New Jersey and Connecticut is derived from Wall Street wealth. The savings and investments of the whole nation and much of the world flows through this financial capital. As the world wakes up to the massive financial fraud, this will lead to the destruction of capital like we have never seen before. This will have tremendous effects on the regional economy as people (perhaps owning very expensive cars) suddenly wonder where their next meal is coming from.

5. Washington D.C.- The political collapse of the Federal Government will wreak havoc on the hugely inflated local economy. As more and more states find it necessary to assert their natural control, the Federal Government will suddenly lose power and importance as the whole world suffers from a Global Hurricane Katrina. The money that they create and spend will become worthless and the government minions’ pensions will evaporate. Millions that once relied on the ability to force others to send their money to them will learn that the real power has always been at the most local level. Massive decentralization will be the answer to globalization gone mad. Local families and communities will forgo sending money and power out of their community as they will care about their next meal and keeping warm.

“You can ignore reality,but you can’t ignore the consequences of ignoring reality.” -Ayn Rand

To sum up,those areas that have lived highest on the hog in the dollar paradigm will most likely be the worst places to live when the dollar collapses. Many of you will find this article of passing interest, but rest assured this dollar collapse is coming. It is a mathematical inevitability. We will not be as fortunate to muddle through this collapse like we did in 2008 when it was a corporate problem. This time around, it is a national and global problem. The global Ponzi scheme has run out of gas as the demographics decline, as cheap abundant oil declines, as hegemonic power declines. This comes at a time when we reach the exponential or collapse phase of our money. The Irresistible Force Paradox says, ”What happens when an unstoppable force meets an immovable object?” We are about to find out,when infinite money hits a very finite world.

If you want to become aware and prepared for this collapse, please join the free Sons of Liberty Academy.

Overdose: The Next Financial Crisis

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by Jeff Harding
Posted July 16th, 2011

THIS MOVIE, ON THE SUBJECT OF THE CAUSES OF THE FINANCIAL CRISIS, was produced in Sweden by Henrik Devell, directed by Martin Borgs, and narrated by Johan Norberg, a Senior Fellow at Cato Institute, and a prominent libertarian and frequent guest on Stossel. It is very professionally done and entertaining. You can see it right here on The Daily Capitalist Theater. Turn your video setting up to 720p. It is a feature length film, 46 minutes, so sit back and enjoy it.

Here is a description of from their web site:

In times of crisis people seek strong leaders and simple solutions. But what if their solutions are identical to the mistakes that caused the very crisis? This is the story of the greatest economic crisis of our age, the one that awaits us.

When the world’s financial bubble blew, the solution was to lower interest rates and pump trillions of dollars into the sick banking system. “The solution is the problem, that’s why we had a problem in the first place”. For Economics Nobel laureate Vernon Smith, the Catch 22 is self-evident. But interest rates have been at rock bottom for years, and governments are running out of fuel to feed the economy. “The governments can save the banks, but who can save the governments?” Forecasts predict all countries’ debt will reach 100% of GDP by next year. Greece and Iceland have already crumbled, who will be next?

The storm that would rock the world, began brewing in the US when congress pushed the idea of home ownership for all, propping up those who couldn’t make the down payments. The Market even coined a term, NINA loans: “No Income, No Assets, No Problem!” Enter FannieMae and FreddieMac, privately owned, government sponsored. “Want that vacation? Wanna buy some new clothes? Use your house as a piggie bank!” Why earn money to pay for your home when you can make money just living in it? With the government covering all losses, you’d have been a fool not to borrow.

The years of growth had been a continuous party. But when the punchbowl ran dry, instead of letting investors go home to nurse their hangovers as usual, the Federal Reserve just filled it up again with phoney money. For analyst Peter Schiff, the consequence of the spending binge was crystal clear: “we’re in so much trouble now because we got drunk on all that Fed alcohol”. Yet along with other worried experts, he was mocked and derided during the boom.

Have you taken out a mortgage, invested capital or bought shares? If you have, likelihood is you lost out in the latest bust. Governments promised decisive action, the biggest financial stimulus packages in history, gargantuan bailouts: but what crazed logic is this, propping up debt with…more debt? This documentary brings an entirely fresh voice to the hottest topic of today.

Greece now, America in due course

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by Michael Hudson
Posted 13 JULY 2011

 

Transcript:

PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Washington. In Greece, the Parliament has passed the austerity measures. And judging by the reaction of the stock markets and investors, everyone was rather pleased with that. Stock markets shot up for the next few days. The euro went up. There was even optimism about the future of the economy. But that’s kind of the whole point. It was all optimism on the stock markets and bond investors. In fact, that’s how the whole story’s been covered. It’s all from the point of view of speculators. But what does what’s happening in Greece have to do with ordinary Americans? Now joining us to talk about this is Michael Hudson. Michael is a distinguished research professor at the University of Missouri-Kansas City. He’s the author of Super Imperialism: The Economic Strategy of American Empire. And he joins us now from New York City. Thanks for joining us, Michael.

MICHAEL HUDSON, RESEARCH PROF., UMKC: Thanks for having me, Paul.

JAY: So why should ordinary Americans or ordinary North Americans care about what’s going on in Greece?

HUDSON: Because what’s happening in Greece is a dress rehearsal for what’s going on in the United States. Already, a few weeks ago in Athens, the protestors had signs up referring to Wisconsin and the problems here. What’s happening in Greece in the last week is exactly what’s happened in Minnesota with the close-down of government. And the demands of privatization–Greece sell off its roads, its land, its port authority, its water and sewer–is just what Illinois’s been doing, what Chicago’s been doing, what Minnesota’s been told to do, and what American cities are trying to do. So you have an identical strategy being used between Greece and the United States. Greece is the first domino since Iceland. And the financial interests that are looking at this post-2008 debt crisis as a grab bag think now is the chance for us to make our move. Now we can take all this debt that we’ve built up and we can get out of the financial system, we can turn it into direct ownership of property. We can own the Greek islands, we can own the Greek public domain, just like we can own what Minnesota, Chicago, Wisconsin, and California own. And all of a sudden you have a huge virtual foreclosure process.

JAY: Right, because, I mean, the alternative, obviously, would be to do something on the tax side, which is to tax, especially in Greece, where the wealthy practically pay no tax at all. Of course, the American scenario, they pay some tax, but not nearly historic tax rates. But this seems to be one of the prime objectives in the Greek situation is stripping the state of its assets and getting rid of what public ownership there is.

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The strategic advantages of community building

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by Alt-Market
Posted on July 13, 2011

THE YEAR WAS 2002, AND WHILE THE MAJORITY OF AMERICANS WERE COMPLETELY OBSESSED WITH THE SO-CALLED “War On Terror” and other devices of distraction, something much more real and decidedly prophetic was going on in our southern hemisphere. Argentina was in the midst of total collapse, driven by banker fraud and extreme currency devaluation in tandem with government mismanagement and corruption. First, cities exploded with rioting and violence as Argentinian police and military attempted to crush all dissent. Soon after, displaced refugees from population centers along with roving bands of thieves flooded into the countryside, wiping out isolated farms, murdering families, and hunting down any small group of survivors weaker than themselves and flush with supplies. The authorities (and I use the term loosely) were too busy trying to suppress civil protests to bother protecting those who were caught unprepared.

This behavior is part and parcel of economic destabilization, regardless of the time or place in which it occurs. Only nine years ago, a very modern and technologically savvy nation of people, nearly cannibalized itself. Those who survived and thrived did so through family aid and substantial existing wealth, or, the tactical building of communities for the purpose of mutual defense and alternative trade. Farmers armed themselves and formed regional groups along with security measures. City dwellers formed neighborhood watches and barter networks when the mainstream economy disappeared. The bottom line; lone wolves and isolated country families were nothing more than tempting targets at the onset of the breakdown in Argentina.

I and most other Americans have never personally lived through such a collapse, though some would be preppers rather boldly claim to be experts on surviving these specific kinds of catastrophes. I am not an expert, and neither is anyone else who has not experienced a collapse first hand. However, we CAN learn from the experiences of experts; those people who lived through the Great Depression, the Argentina crisis, the implosion of Bosnia, the breakup of the Soviet Union, the ongoing breakdown in Greece, etc. We can analyze their successes, and their failures, and devise solutions based on that which actually WORKED, instead of the random theories of people who can only guess at what life is like in the thick of hell.

One solution that has consistently been adopted and applied by numerous societies across the globe in the face of a stratum of different calamities is the art of community building. This strategy has proven itself over and over again regardless of catastrophic conditions. It is not theory. It is not debatable. Community networking has been proven time and again as a means of subsisting safely during depression, hyperinflation, mass hysteria, despotism, martial law, and even widespread war. Unfortunately, it is a methodology that has gone mostly ignored by many Americans, even those who are well aware of impending economic danger.

Common Oppositions to Community Building

First, we must put to rest those misconceptions that hinder the development of meaningful defensive community before we are able to understand the nature of various organizational methods and their benefits. Let’s examine some often heard arguments against the formation of survival relationships, groups, and focused networks…

1) Other People Aren’t Reliable. I Can Survive Better On My Own…

I’ll be the first to admit that some people are unreliable if not downright pathetic. On top of this, many in our culture find it necessary to exaggerate their abilities or their resolve until they are faced with an actual crisis, and then they fold like a wet blade of grass. Counting on such men is a waste of time and energy, not to mention, dangerous. Certainly, every prepper should have the ability to make it on his own, at least for a short time, in a collapse environment, and anyone who does not have that option is in some serious trouble.

I write a lot about “dangerous assumptions”, almost to the point of feeling ill, because most if not all of America’s problems are either caused or exacerbated by them. We presume too much too often, and it always comes back to bite us. Presuming that one will never be forced into a situation where he might have to survive alone for a time is foolish. There is no guarantee that we will always have others to fall back on, or that we will never be driven from our homes. On the other hand, it is equally foolish to presume that you will not face even worse circumstances while you are on your own. Unless you have the ability to go for weeks without sleep, and to be alert to every conceivable detail at every conceivable moment, it is insane to CHOOSE lone wolf survival over community and mutual defense. Its good to have the ability to go solo, but if you want to actually make it through a collapse similar to that which occurred in Argentina or worse, eventually you will have to work with others. This is not my opinion, it is a fact made concrete by numerous economic disasters around the world.

2) Groups Draw Too Much Attention. It’s Better To Keep A “Low Profile”…

I’m not sure where this nonsensical theory came from, but it definitely didn’t get started by anyone who has actually lived through economic implosion. The root of this strange position is that organizing networks of people for trade and for defense makes you a visible “target” for a corrupt government. At least, that’s the argument. It may be true that more focused groups of liberty minded people are indeed placed on lists, and singled out for surveillance or media ridicule, however, we need to apply some logical thought here.

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Great Depression comes knocking

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from The Daily Bell
Posted July 13, 2011

China’s Economy Grows 9.5%, Exceeding Estimates … China’s economy and industrial production expanded more than analysts predicted, indicating the nation is maintaining momentum even after interest-rate increases to cool inflation. Gross domestic product rose 9.5 percent in the second quarter from a year earlier, the statistics bureau said in Beijing today, after a 9.7 percent gain the previous three months. The median estimate was for a 9.3 percent pace in a Bloomberg News survey of 18 economists. Industrial output advanced 15.1 percent in June, the most since May 2010. – Bloomberg 

Dominant Social Theme:
See, things are good! China is in a good shape, Europe is recovering and America has the political will to deal with its problems. Recovery is on the way. No problem!

Free-Market Analysis:
We are not convinced by the endless stream of happy talk that emanates from the mainstream media these days. Our view is less benign. From what we can see, the world is descending into a kind of controlled (or uncontrolled) Great Depression. It’s taking time but the arc is clear.

This article will illustrate yet again how mainstream media covers the world – China in particular – and why the reality is so much different. We regularly observe that the world’s conversation is organized via the Anglosphere elites’ “dominant social themes.” These fear-based promotions are intended to strip wealth and prosperity from the middle class in order to increase control of globalist institutions. But the Anglosphere elites also work via OMMISSION. That is, in addition to advocating fear, they actively encourage ignorance.

We are well past considering it to be coincidence. The world’s economy is a kind of planned madhouse. Those in power have inflicted upon it scores of central banks – all busily printing/creating money from nothing at the push of a button. Those who run these central banks are well aware of their ruinous disposition. They understand fully the boom bust cycle that brings bankruptcy and hopelessness to so many. But one does not ever acknowledge this. If one works within the system, one is not supposed to.

In the upside-down world of modern finance, central bankers who print money are “hawkish inflation fighters.” Politicians who endlessly create the distortive price fixes, called “laws,” are “public servants.” Corporate leaders who generate profits by linking their companies to the great, grinding machinery of Western legislation are “entrepreneurs.”

Mainstream media coverage provides us with a disparate view: Each element of the puzzle is treated incidentally. Sometimes the news is good, sometimes bad. But … somehow … the Western world’s economic situation continues to erode.

What is the result? Sooner or later, planned or not, the conclusion shall be reached. It will presented as a coincidental fait accompli, a solution that has occurred quite by accident, an evolution that seems inevitable but was not in any sense (so we are to believe) preordained: What is to be the apex of all this? A shiny new world order, perhaps, complete with a global currency.

In the meantime we are not supposed to notice the truth. Not ever. And what are the over-riding sub-dominant social themes when it comes to the world’s non-existent economic recovery? In no particular order … Europe’s crisis is being dealt with; America is on the rebound; the BRICS are healthy and China continues to expand at a rapid pace while controlling inflation. If you believe this, dear reader, we have a bridge to sell you in downtown Brooklyn, NY.

There is ample evidence that none of this is as it seems. The US is broke. Involved in an ever-spreading war on terror, American political and corporate elites can’t agree on how to confront an impending national default. In Brussels, powerful Eurocrats are meeting for the umpteenth time to deal with a sovereign crisis that never seems to go away.

Price inflation? China and the BRICS generally continue to announce that price inflation is under control: Every month the leaders of these countries assure it is so, while continuing to put into place Draconian price-fixing policies to control what is already controlled. It IS controlled. They tell us so.

In fact, America is staggering; it is finally retreating from its horrible wars not because the military-industrial complex wants to, but because it has to. The Pentagon, like the rest of the country, is broke. Europe is broke, too. And China has printed so much money that it has had to forbid people from buying and selling real estate.

There are more problems. Japan is reeling from a devastating earthquake. Russia is collapsing into a morass of corruption leavened only by additional “terrorism” and Africa faces devastating drought accompanied by “food insecurity” that threatens starvation for tens of millions.

Listen to the mainstream media and none of the above is placed into perspective. The reporting is serial and disconnected. In many cases it is determinedly optimistic. It wouldn’t do for elite media to admit the truth. The idea that the Western dollar reserve system basically died in 2008 and only the injection of some US$50 TRILLION around the world has saved the system from complete collapse is not an acceptable epiphany.

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