Episode-668- Listener Calls 5-20-11 — 10 Comments

  1. Jack,

    To expand on your answer about inflation and the US borrowing of money:

    When we borrow money from the Federal Reserve, we’re borrowing money from a foreign government, because the Federal Reserve generally borrows it from somewhere else before loaning it to us. We pay principle and interest on that loan to the Fed, who then pays the foreign bank and keeps part of the interest. We have no control over where the Fed borrows money–they are a private entity run by bankers, for bankers. It’s very important to understand that the Fed, despite it’s deceptive name, is entirely a private entity and does not have anything in reserve. They have long been Congress’ unlimited credit card, hence the mess we are in. We don’t borrow money from the Treasury–the Treasury borrows it from the Fed.

    To further clarify the fractal reserve concept for the caller, the Federal Reserve has what’s called a bond reserve rate. That means that they must possess a certain amount of bonds to back a given amount of newly printed currency. The Fed’s bond reserve rate is 10%. So, if we take QE2 as an example, the Fed bought $600 billion in bonds, which authorized them to print $6 TRILLION in new money. With that $6 trillion, they can choose to loan it to our government, at interest, versus borrowing from overseas–it all depends on what is more beneficial to them. It’s easy to see how they can blow inflation through the roof with this Ponzi scheme. I have read the Federal Reserve Act of 1913 for myself and know this to be fact. It is freely available as a matter of public record for anyone who cares to verify.

  2. Sovereign Citizen issue. You would have to look at how it is being defined. I don’t have all the details. I’ve heard it explained as we have 2 types of citizens, sovereign citizens who are not subject to income tax and many federal laws. When slaves where given their freedom it created a different kind of citizen, sub-citizen if you will, which are subject to income tax, etc. I’ve not taken the time to read more on the subject. But various groups teach seminars on such, lots of lawsuits against irs etc. looking for technical details such as what type of citizen the constitution is talking about depends on whether it is a capital C or small c.

    Now I don’t believe in a sub-class citizenship of freed slaves, we are all the same. Nor do I think refusing to pay income tax, lawsuits, is an effective use of time and energy.

    I’ve got nothing asked groups which go out on their own in Montana or somewhere, trade among themselves, provide all their own support, etc.

    As I said, don’t know much about the term. Issue is you have people claiming to be sovereign citizens killing police officers in a routine traffic stop.

    “Terry Nichols of the Oklahoma City bombing was a sovereign citizen, and Joe Stack, who flew his small plane into the IRS building in Austin, Texas. in February, was also affiliated with the movement. ”

    Jack, I imagine your definition of sovereign citizen is different than Terry Nichols.

  3. I was just listening to the podcast as I signed up for it this evening. I wanted to give a brief comment with regards to the mention of why Americans have an aversion to planting fruit tree’s and generally anything that we can eat.
    I peer of mine did a research project on organic farming in America and her research showed that about 80% of the civilian population in America during World war I and II were being fed from home gardens. This was promoted by the Federal Government so that the major farming community could be used exclusively for feeding the Military during wartime. However, after World War II, the stamp act switched their focus onto Welfare Formation and withdrew all funding over a period of one decade from the community educational programs teaching and inciting citizens to grow gardens and put every dime of those funds into establishing and promoting welfare across the nation.
    I just thought it might be worth wild for listeners to be aware of how substantially the U.S. government can establish a change in both policy and in cultural values within the span of a single X generation. Don’t buy the lie, buy what you can to survive.

  4. We just had to spend about $800 in repairs to our water system at the BOL. There were some frozen water lines (copper and PVC pipes) inside, the expansion tank was shot, as was a capacitor in the electrical system to the well. We replaced the interior piping with Pex tubing and SharkBite fittings. What a huge improvement to the plumbing – simple to use and fool proof. Before the fall, we’ll have everything switched over to Pex and drain to a central point so we can close it down for the winter with no additional problems (or so we hope!).

  5. Regarding the National Inflation Association, be careful – Peter Schiff is now out asserting that they are a stock pump & dump operation. I don’t know if you (Jack) talked about this in episodes beyond this one because I’m about a week behind & trying to catch up. It’s run by a guy named Lebed who is infamous for pump & dump schemes on penny stocks that he either owns or gets paid to promote.

    Anyway, check it out on Schiff’s YouTube Channel. Personally I think he is correct and that this organization is a scam. They make some nice documentaries though, and that’s part of the plan to get us all to sign up with them so they can push targeted stock picks, like junior miners, at us.

    Anyway, just wanted to add that. Do your own DD & tread cautiously.

  6. I just listened to this show last night and had a question just in case anyone is still reading this. So lets just say that the Federal Reserve buys the bonds back from grandma or China early and now the Federal Reserve owns this bond. Now what happens when the bond reaches maturity. Who gets the money plus the interest; the Fed?