Month: April 2012

Civil disobedience in the face of desperate government: John Rubino video

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The United States is in serious financial trouble. In 2011, the Federal Government borrowed over 40 cents for every dollar it spent, and the Federal Reserve Bank bought 61% of all the debt that the United States Treasury issued. When the Federal Reserve buys the debt, it is called “quantitative easing”, which is a euphemism for creating money out thin air (not money printing--but the creation of electronic money). Eventually, that will lead to high inflation, which is already becoming painfully visible in the prices for food and gas.

Tax freedom day in the United States is allegedly in April, but the hidden taxes of inflation make it much later in the year–in a manner that is completely dishonest. Hazlitt wrote in Economics in one lesson (p. 20):

Here we shall have to say simply that all government expenditures must eventually be paid out of the proceeds of taxation; that to put off the evil day merely increases the problem, and that inflation itself is merely a form, and a particularly vicious form, of taxation.

Veteran investor Marc Faber suggests that wealthy people will likely face a minimum of 50% reduction of wealth due to inflation, war and civil unrest, and asset price collapse. How can people protect themselves? Physical gold, say some. But alas, gold investors fear desperate measures by confiscatory governments to seize gold and to try to stop the gaps of their own uncontrolled spending.

In this light, John Rubino of dollarcollapse.com predicts that people will have to practice civil disobedience in order to protect themselves against an out-of-control government that is tending towards dictatorship. For example, he suggests putting gold in a foreign bank where the IRS can’t get to it. I have also suggested in certain cases that civil disobedience is a proper reaction to the IRS. For example, it is high time that those of us who are living abroad as citizens of other countries begin to practice disobedience to the unreasonable and unconstitutional demands that the IRS has been making against us. We have the great advantage, over US-based people, of having already made our great escape from the tyrannical grasp of this country, once-great but now turned desperate and evil.

We must do this because we cannot possibly meet the demands of two taskmasters (or tax masters). We must learn to disobey cheerfully, so that our grief does not kill us.

Hat tip: Monty Pelerin

Royal Bank’s official response to CFTC’s accusations

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If the following responses are true, the CFTC has mud on its face.  The United States markets are a cesspool of corruption, turning a blind eye to MF Global, Jon Corzine, and the other banktsers, but charging a Canadian bank with trumped up allegations.

RBC Vigorously Rejects CFTC Allegations as Unwarranted

TORONTO, April 2, 2012 – In response to the CFTC’s allegations against RBC for trading activity that the CFTC reviewed and had full knowledge of, RBC has these comments:

  • The CFTC has been aware of these transactions since 2005. These transactions were done in accordance with market terms, regulations and process.
  • This is not a financially material event to RBC but we do take this situation seriously and intend to vigorously defend our reputation.
  • Before we made a single trade, we proactively contacted the exchange to seek its guidance. These trades were fully documented, transparent, and reviewed by both the CFTC and the exchanges, and for the next several years were monitored by them. RBC’s trading was permissible in 2005, was reviewed six months later by the CFTC and encountered no objection, and it is permissible today under the CFTC’s published guidance.
  • Given no objection to the trading activity by either the exchange or the CFTC in 2005, it is absurd to now claim these trades were either fictitious or wash sales. This lawsuit is meritless.
  • The block trades in question were entered into by independent RBC legal entities with the intent to establish genuine, bona fide positions, based on the CFTC’s long-standing regulatory guidance. They were executed at competitive market pricing and no market participants suffered any negative impact, nor has the CFTC alleged any pricing irregularities.

For more information, please contact:

Kevin Foster, RBC, 212-428-6902, kevin.foster@rbc.com
Rina Cortese, RBC 416 974-5506, rina.cortese@rbc.com

How to deflect attention from Jon Corzine and MF Global: Charge a Canadian bank

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My motto is this:  Get the United States out of Canadian banks and get the Canadian banks out of the United States.

The Commodity Futures Trading Commission (CFTC) has figured out how to deflect attention from Jon Corzine’s stealing client’s segregated money to cover MF Global’s proprietary trading:  Charge a Canadian bank with a mischief called “a wash trading scheme”.  Such a scheme, whatever it is, is apparently illegal; but see if anyone can explain to you why it is wrong in less than five minutes.  But stealing your clients’ segregated funds, which is a very clearly wrong, is something to which the CFTC turns a turn a blind eye. In my view, this is similar to the situation with US expats becoming the target of tax collection efforts, all while buying votes with tax credits from Americans still in the homeland.  It stinks of corruption.  So CFTC attacks a Canadian bank, and that makes it look like it’s really doing something–meanwhile it lets its friends steal billions from their clients.  It stinks with a great malodorous corruption and decay of a once great nation that has now died.  It is the straining of a gnat and the swallowing of the camel.

Now that the Chicago Way has become the American way, I say it is time to pull all our investments out of the United States; Canada’s banks did not heed my repeated warnings (e.g., here) and now RBC will pay the price. Gerald Celente told the Daily Bell:

Daily Bell: How about the CFTC? Are they doing their job of protection and prosecution?

Gerald Celente: Well who’s the head of the CFTC, Gary Gensler? He was one of the lieutenants for Jon ‘the Don’ Corzine when Corzine was head of the Goldman Sachs gang, before he became senator of New Jersey. You get it?

Who’s Obama’s Chief of Staff? Bill Daley, from that wonderful Daley machine in Chicago. Where did he come from? Oh, vice chairman of Morgan Chase. Who was Bush’s treasury secretary? Oh, Henry ‘Frankenstein’ Paulson. Where was he from? He began as the CEO of Goldman Sachs after Jon ‘the Don’ Corzine left. This is the guy who created TAARP and came up with the BS line of ‘too big to fail.’ Him? Yeah, that’s right.

[snip] …

The moneychangers are taking over the temple; you don’t have to go very far to look. It’s right there in front of everybody’s eyes and no one will call a spade a spade. The Rothschilds would be jealous to see what the Goldman Sachs gang, the JP Morgan Chase criminal operation, the Citigroup crooks, the Deutsche Bank bandits and the rest have pulled off.

When the system is corrupt, the regulatory commission will search far and wide for “criminals”.  This US financial regulatory system has allowed the banksters to go free, but takes down little guys like Jonathan Lebed and Charlie Engle.  See the following Chris Martenson’s interview with Gretchen Morgenson, in which they ponder the question why no major banker has gone to jail for the 2008 subprime mortgage fraud that caused the collapse of the world’s economy: