What happened to our money, to our country?!

By: Joshua Gayman

The reason Occupy Wall Street is happening right now is because there is a huge movement of young people who want to reclaim this country from corporate interests. These protesters feel that our political system has been hijacked by Wall Street and their corporations. Not only that, but they feel that our elected officials now serve the interests of the wealthy upper 1%, instead of “the 99 percent.”

I’m gonna write..Dang it!!! I’m gonna write…

It’s not that I can’t do, but that I can reach more people online than I can on the street. Also, I can capture attention. Why protest when I can speak more clearly through my mac sitting in my bedroom. I don’t oppose the Wall Street crashers. They are frustrated. They feel that the system has hijacked the way of life their parents had and that they planed to continue, and they are right.

The solution is that we need to reclaim our own money. If America acts now, we still have the financial and political power globally to reclaim our position. China will fight us hard, but we really need not compete directly. We don’t have to buy Chinese. If we open back up the factories we can put millions back to work and produce value back into our society. My God, can you imagine what stuff we would have cooking right now if everyone was working hard to better society? We are geniuses. I don’t really know why, but for some reason us Americans kick ass. In all actuality, I don’t think we have anything that any people don’t have. It’s just the timing and in my honest to God opinion, it’s God’s plan for this time.

So how did we really get where we are now? The world has turned upside down in the past 3 years!!

Well..Life happens. The only thing constant in this world aside from God’s love is change. Because of this thing called time, everything constantly evolves.

So what happened?

1700’s – USA is founded. We say F U to Britain because we do not want to use their currency and pay their taxes anymore. We draft a constitution that we will never let another entity print our currency and we will never have an income tax. We kick their butt and start our own country on free market using gold to back our currency. As an interesting sidenote..The South made their own currency during the Civil War, but with no gold backing it inflated to zero value..

We go from Wild West to Industrial Revolution. Life is changing rapidly with new mechanics. Lots of production is created, in fact, it is exponentially created because of leverage and tools.

Let’s face it..The media is about as honest with us as a politician. So when you think about it, how do you really know what you learned in school was even truth? I know I hear you already, “Oh here we go, another conspiracy article..” NO – Listen to this: John D. Rockefeller founded the US Board of Education in 1903. What did  that guy want with the school system? And since he did buy it..Why didn’t he add education on money into the school system? Why do we still have a school system that is hundreds of years old and was created to manufacture military? Now here is my point, we have no idea if the things we read in our history books are true. History is not math, gramar, or science. History is one of the biggest tools used for manipulation and deception.

Moving on…

10 years later, John D Rockefeller, along with other ultra rich men such as JP Morgan, and Paul Warburg, founded a company and called it the Federal Reserve. This company would issue currency to countries. The trade off that they could offer to the Congress was that if they printed the money, they could give it to the government. Scandals in the Congress are nothing new, and the Federal Reserve Act passed.

Time for an income tax!!

The income tax was supposed to be to fund WWI, but we still pay it today, 100 years later…

20’s…HUGE recession, but it was removed from Rockefeller’s history curriculum in our education system that he hijacked.

GREAT DEPRESSION: Debt from WWI is too much to pay. we need more currency. The government confiscates gold and then raises the dollar-associated value to it by over 50%, hijacking over 50% of the real money in circulation and jeopardizing our whole system.

WWII – America wins. Bretton Woods Act is passed, making the United States’ currency known as the Dollar, the Reserve Currency of the World. Oil is now traded in dollars, making it so that other countries must exchange their currency for dollars and then purchase oil. This causes the value of the dollar to increase drastically and therefore makes it easier for the United States to get credit from foreign investors who are eager to invest in the luxurious American economy. After all, their debt is backed by the good faith of their tax payers.. Remember too, the Congress can now go the Federal Reserve whenever they want, increase their “debt ceiling,” and borrow more money.

America rocks like rock stars for 27 years, get involved in some turmoil overseas, increased the debt more. Then Nixon said let’s have a REALLY big money supply, since everyone in the world treats our dollar like gold! He totally cuts the link between the Dollar and gold. Expanding the money supply to infinity.

A few years later, the “Employee Retirement Income Security Act” is passed, making it so that the tax payers are responsibly for their own retirement, and the burden is lifted from corporations. Birth is given to the IRA and 401K. This makes it so that retirement money flows to Wall Street and they can operate the money as a ponzi scheme, with money from new investors paying out the old people as they retire. *Another sidenote:  Social Security(Which was enacted during the great depression), also operates as a ponzi scheme, with the money flowing into the system from young workers’ paychecks and out to the retired older folks. The money retirees paid into the system has been spent.

For nearly 40 years, we lived out of our minds!!! There were recessions and expansions, but the reality is that no matter what, we could always get more money because we had a credit card with no credit limit. The credit card company was the rest of the world buying our debt, and the Federal Reserve company selling it.

Our economy boomed and we just kept continuing to kick ass. We got fat, lazy, and greedy, but we stayed smart. We powered through at the front of the line with our advances in technology, especially with computers and the internet. We created several huge bubbles with the stock market, precious metals, dot com, and real estate, but we never thought about the larger bubble that was emerging around all of the other bubbles. The credit balance that we had…The biggest bubble of all, debt!

In all reality each bubble helped us. Because off of each bubble, we could sell more debt, increasing our limit. The last one we benefited from was real estate. When we all could buy a house or re-finance one and get a rediculous amount of money for, with nothing down but a signature. How bitchin is that!? You could make $30,000 a year, live in a $300,000 house, drive a $30,000 car and have mad toys. All you had to do was refinance your house when you needed more money to cover your bills.

Then it popped. It popped because people could not afford the minimum debt payments on their mortgage payments anymore. Even with interest only loans and low interest short term adjustable loans, the mimimum monthly debt was just too much. The world quickly realized that the actual real estate was never truly worth what we sold the debt for. Values plummeted, but so did families losing their homes.

The government tried to keep the bubble going(and still is) by lowering interest rates, again and again and again. The Federal Reserve is happy to do so because it preserves the system of debt. If we stop selling our debt, they cannot continue to gain power over us for our indebtedness. Also, with all of the other countries attached to our debt system, known as the dollar, it keeps it easier for them to have a leash on the entire planet.

With mortgage payments stopping, lending stopped. Now, even with super low interest rates, the people are simply not allowed to take on anymore debt, unless they still have some collateral left that they are willing to put up, and most don’t..

With a country that’s whole currency system operating on debt, not getting any more loans, the economy dried up.

2007 – The banks failed because nobody could afford their loans. They sold a product that was risky, and they lost. The collateral from the loans was not sufficient to cover the exposure they had. Congress decided that if the banks failed, lending would stop, people could run to the banks to withdraw their money, and the economy would die, so they took on more debt from the federal reserve, pinning the tax on the US taxpayers back still(but now getting exponentially larger) and marched on with the debt system, even tho it was by all means bankrupt. They gave it to the banks, “to lend to the people.”

The banks didn’t loan shit to the people. The rest of the world gets mad(particularly China), because we are now exponentially increasing our money supply, and thus devaluing our debt to them.

With no buyers left outside of our country to buy our debt, and no assets to pledge them, the company knows as the Federal Reserve decides that they will just buy our debt themselves. This keeps the cash flowing into the United States, and stays off a collapse for the short term. The money supply keeps exponentially increasing, as prices rise on exports to combat the artificial expansion of our money supply.This is what is known as “quantitative easing.”

Meanwhile, people keeping losing their houses, their jobs, their businesses. Everyone keeps waiting for life to go back to normal. But it doesn’t happen…

The stock market goes up and down, but it doesn’t have any effect on anyone. The people that have money seem to keep getting bigger. But everyone you know is broke and jobless. People hear what the banks did with the money that they were given that was supposed to be for lending. They hear about the bonuses to all of the CEO’s that took their house.

Student loans never stop, but everyone is starting to figure out that the debt created by going to school is huge and they aren’t making nearly enough to make it manageable, if they are making anything at all.

Let’s face it…The debt system is broken. We still have some HUGE values that we contribute to the world. I like all of our professional sports, Google, Aaple, Nike, I could name many many more. But, we don’t have anything left to pledge as collateral to keep receiving debt to live on. We already pledged it up….

Present Day:

We go to Wall Street. We protest about the greed and corruption. We don’t go the the corporation the Federal Reserve who created the system, instead we go to the investors on Wall Street who’s job is to keep money flowing into the market to satisfy the system and pay our people’s retirement’s through pensions. Without Wall Street, many retirees would lose their retirement. Retirees like teachers, firemen, and police officers.

We need to take back over our systems. It’s sad to say, our currency is falling to zero like a slowly bleeding cow. And there is nothing anyone can do to stop the bleeding. We try to stop it with band aids such as expanding the money. But expanding the money without expanding the demand for the debt can’t create real value. So the dollar will die.

Value is coming back. Value is king. If you have a trade, great. If you don’t, learn one. What do you love? How can you do that so as to benefit society? If we can get back to creating real value, they’ll keep buying our debt. But we should not let Congress give away our value to the Federal Reserve. We can sell our debt directly if we are going to sell it at all.

What will happen next?

I don’t know.

I suspect that to preserve the system of debt, the central banks will create a globally currency. The world will buy into it because they won’t have a choice. The debt bubble in Europe popped too. Asia is next. The Chinese have been devaluing their currency to try and combat the inflation of the Dollar. The global currency will be digital, as in all actuality the Dollar is now digital itself. I don’t know which part of the world will receive the biggest inflow of the global currency, but I suspect that it will be the gographic location which produces the most value. Competition is inevitable.

No matter what, we aren’t here for a long time, we’re here for a good time…

Peace and love,

1.

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The Recession is Over: BS! – Take II

By: Joshua Gamen

I am downright ticked off when I hear politicians say that the recession is over and that we are in a recovery. I understand what they are trying to do(gain votes), but it disturbs me when politicians play off of the naive, hard working Americans. I don’t like it when business people do it either. It seems every other commercial I see on TV now days is from an insurance or “investment” company, begging people to give them their money so that they can have a “bright future,” or “safe retirement.” Hear this: there is no shortcut. If it were so easy that you could just hand your money to someone until you retire and have them pay your retirement for you, the government would do that. Or wait, isn’t that what social security is? Then again, social security and medicare are estimated to be a $50-$60 TRILLION dollar time bomb! We will start to see in the near future that there is no money in these funds, as the massive demographic of baby boomers begins to try to retire. No, it’s just not that easy. If you want a brighter future and a cozy retirement, you need to be financially literate – understand how money works. A good first step would be to take notice that financial “advisers” are actually in fact, financial salespeople! And politicians will play off of whatever emotions they need to so that they can gain your vote, and along with it, power – for themselves and the ultra-rich of whom they represent.

The recession is not over. First of all, it’s a depression, the government just quit using the term after the the “Great Depression.” Unemployment is still soaring, the government manipulates the numbers and does not count the people that they don’t want to count, to manipulate the statistics so that they can brag about recovery to gain votes. US trade is not increasing either, and the world is moving away from the dollar. Countries are not buying US debt anymore. Housing prices are not seeing any stabilization, people still can’t get a mortgage and the number of foreclosures is still growing. I have yet to see one stat on CNN that suggests housing is rebounding that makes any sense to me, and I work in real estate every hour of every day! The only thing I hear that is up these days is luxury luggage, which is a clear indication of the only people profiting from these economic times are the rich. The middle class is being wiped out right now and it is time for that demographic to get their minds right and take action! Individually, the best thing you can do is get yourself educated. In this global economy where our dollar is drowning(which happens to be the reserve currency of the world), knowledge is the new currency.

Last month I wrote the post “BS: The recession is over.” – This month I would like to elaborate on some of the details.

When you look at the size of our deficit, the size of our debt, China getting out of dollars, Russia moving out of dollars, rich oil-producing countries moving out of the dollar, less global confidence in the dollar, China hoarding gold, it becomes obvious that these are trends that clearly show that we are a bigger credit risk than we have ever been. Our debt is absolutely out of control. Soon we will have debt that is 100% of our Gross Domestic Product. This means that our nation’s debt will be the same as the value of the goods and services that our whole nation produces in a year. These trends will effect our national security, our standing in the world, our quality of life, etc. We are headed towards financial instability. If we keep this up, the dollar will soon be removed from the world’s reserve currency. What’s more scary is I don’t see anything coming that is going to fix these problems.

Look at Obama’s budget, TRILLION dollar deficits FOREVER! Now I realize that some people do have faith in the dollar, but long term, when you look at countries like China, Japan and Russia moving out of the dollar, you have to see that the world is losing confidence in the US and in the dollar. We desperately need China and everyone else to buy our bonds. We operate on debt, if we can’t get people to buy our debt, we can’t operate! Our living standards are headed down and if we don’t do something soon, our living standards will never be the same.

Inevitably, I do believe we are going to see some changes in the near future. All you have to do is look at Obama’s popularity rating. What historically has created change has been president’s before them creating disasters. If you look at what created Ronald Reagen, what created Bill Clinton, even what created Obama, it is the President’s before them creating disasters to open up the minds of the people to vote in changes. Look at George Bush, he was an absolute disaster, so along came Obama. We got what we wanted, a bigger disaster! While American people will get bored with the details, they will demand change!

The change is going to have to be very different to create a successful shift. They are going to have to be committed to cutting our costs and shrinking the cost and size of the government. To shine some light on the disaster that is currently in the White House, we are trying to add a new entitlement(a guarantee of access to benefits based on established rights or by legislation) to healthcare. Are you freaking kidding me!!!??? If you are for this, I am sorry, but financially speaking you must be absolutely crazy! We can’t pay for any of the entitlements we already have! We can’t pay for medicare, we can’t pay for medicaid, social security is BROKE, literally. The freaking post office is broke! Everything is bankrupt, and we are adding a new entitlement???!!! Harry Reid(Senate Majority Leader) and  Nancy Pelosi(Speaker of the House of Representatives) are actually trying to get us to believe that we are going to cut the deficit doing this! CRAZY BS!

The American people need to demand an administration that is going to balls up and shrink the size and cost of government, shrink the debt, and shrink the deficit. Make no mistake, we are going to have huge pain in doing this. But I do believe the American people will pay the price if they understand the logic of what is needed. Nobody understands the logic of what is going on right now. I don’t claim to either. None of this makes any sense. The guys who created this mess are in Washington making speeches of what we need to do, that’s freaking BS!

 

SCREW THE ULTRA RICH, WORLD BANKS, AND FED

By Joshua Gamen

This post is about a History lesson not taught in schools. For almost a century many things about money have been concealed, it is part of my mission to help spread the truth to as many friends and fellow good people as possible. I dedicate this post to the following people:

First off, my father, Brent Gayman, who with his life showed me that it is critical that anyone who wants to be free, must mind their OWN business. You can not be free working for another man, period. He may not be the wealthiest man on Earth, but he has always stayed free. I have always admired how he could be there at all my  sports games, field trips, doctor visits, etc – because he always controlled his own schedule.

Secondly, the NBA great Travis Outlaw – for it was at his condo my senior year of high school, where I first picked up off his coffee table the book “Rich Dad Poor Dad”(written by Robert Kiyosaki), while kicking his butt at Knockout Kings on Playstation. This book opened my eyes to what they do not teach in schools.

Benjamin Ficker, who loaned me a stack of books written by Robert Kiyosaki, including the book “Retire Young, Retire Rich,” before I departed on a vacation to Maui, Hawaii with my friend Sean Stamm, where I read this book – and my mindset forever changed. I went home from that vacation and made over $8,300 that month – at age 21, solely credited to this new mindset.

And Aaron Niehuser, who wrote me an email today, asking me questions which led me to write this blog post, and see more clearly my vision for the future.

MY FORMAL EDUCATION

My formal education was short. After high school, I went on to play junior college football in Northern California, where I started at fullback. The following year, I transferred to Southern Oregon University, where I redshirted due to bad grades in the classroom from my freshman year in junior college. I lasted one football season and term at SOU, before flunking out of school.

In high school, I got by in the classroom solely so that I could play sports. My parents never rode me very hard about my grades, I was usually a B student, mixed in with some A’s, and some C’s. I really didn’t care much to learn about biology, literature, an obviously manipulated history curriculum, or much else that was taught. I knew I was not going to make my money as a teacher, but rather as a businessman of some kind, owning my own business.

After college, I began my real education: SALES. I enjoyed it from the beginning, and have never looked back. While learning how to sell, I spent many slow afternoons at the car lot reading books on sales, financial literacy, accounting, and economics. I now control my own schedule and my own destiny, owning 50% of a real estate business that operates in both Phoenix, Arizona and Portland, Oregon.(Thanks again to friend and business partner Benjamin Ficker.)

HISTORY LESSON

This lesson begins in the year 1903, when the US Education System was taken over by the General Education Board – founded by John D. Rockefeller. That year, the influence of education was taken over by the ultra-rich.(Sound like a good idea to you???!!!)

When I first learned of this, it finally clicked why formal education was never for me. Though passionate about playing football, I was never motivated enough to sit through 8 hour days of lecture about subjects which did not show me a personal benefit, followed by more wasted hours studying textbooks in subjects I would not apply. (I’m not saying I NEVER enjoyed a lecture here or there. And I must give some credit to math in school, and also to my Freshman Economics Teacher Shawn Abbott.) But primarily, what I know I have picked up on my own education venture.

FAST FORWARD 10 YEARS

A decade after the rich took over our education system, the Federal Reserve(FED) was born in 1913. Created by a group of ultra rich businessmen and bankers at Jeckyll Island off the coast of Georgia, by names including JP Morgan(JP Morgan Chase…), and to no surprise, John D. Rockefeller. The Federal Reserve was created in a deal struck between bankers and the US Treasury. It is not federal, not American, has no reserves, and is not a bank.

GREAT DEPRESSION

In the year 1929, the United States entered into what is known as the Great Depression. During this depression, many government agencies were born, including the Federal Deposit Insurance Corporation(FDIC), the Federal Housing Administration(FHA), and Social Security. Through this time period, the government took MASSIVE control over our lives via taxes. Many of these agencies are responsible for the mess we are currently in(See: FHA, Fannie Mae, Freddie Mac). The problems those 3 agencies are responsible for will be DWARFED by the unfunded time bombs of Social Security and Medicare, which are estimated to be $50-$60 TRILLION DOLLAR bombs! The largest demographic in our population is the Baby Boomers(the people born from the World War II generation), and are currently RIGHT NOW beginning their entrance into retirement. Uh oh….

1933 – President FDR(Franklin Delano Roosevelt), asked all Americans to turn in their gold coins. The government paid the people of the United States $20.22 per ounce of gold. Then, FDR immediately raised the price of gold to $35 per ounce. The government cheated Americans out of about $15 for every ounce of gold turned in. What a cash heist! If anyone was caught holding gold coins, the punishment was a $10,000 fine and 10 years in jail. I believe the reasons behind this were: 1) To get the people used to paper money as the only currency of the world, and 2) Because the government was already broke. They had already allowed the FED to print so much paper currency, that they could not back that currency anymore with the amount of gold they had.

TAKING ADVANTAGE THROUGH WAR

In 1944,  the Bretton Woods agreement was made, with the illusion that it was to smooth out the economic conflict resulting of World War II. In effect, this made the US dollar the reserve currency of the world, requiring other nations to peg their currency to the dollar, which was pegged by gold. This international currency agreement created the World Bank and the International Monetary Fund(IMF). This replicated the Federal Reserve system globally. This act lasted through 1971.

1971

In 1971, President Nixon severed the link between the dollar and the gold standard, for good. Nixon realized that the link between gold and the dollar was draining our central banks of their gold reserves, so he cut the ties. With one stoke of his pen(with no permission from Congress), the global economy was forever changed. This led to one of the greatest economic booms(if not the greatest), in the history of the world. Now the Fed could print as much money as they wanted, turning the US dollar into Monopoly money(the bank never goes broke!) The World Banks now had a monopoly on currency, and the economy shifted from operating on money, to operating on debt. After 1971, the US economy could only increase by increasing debt, and that is when the bail outs started.(They were nothing new by 2007!!!) In the 1980s, the bailouts were in the millions. By the 1990s, they were in the billions, and today they are in the trillions and growing. This change in the rules of money, may be the biggest financial event in world history, allowing the United States to print money at will by creating more and more debt, cleverly disguised by what is known as US bonds. Never before this, had the world’s money been backed by one nation’s debt, a giant IOU from United States tax payers.

That year, the dollar stopped being money, and became a currency. The word currency is derived from the word current. A current must keep moving or it loses value. This is why today, savers are losers. To retain any value, a currency must move from one asset to another(IE:  Stock market to real estate to precious metals). Thus, people who parked their money in the stock market or a savings bank lost money. Debtors become winners as the US government prints more and more money, increasing debt and inflation.

In theory, if people payed off their debt, modern money would disappear.

Then in 1974, the US Congress passed the Employee Retirement Income Security Act(known as ERISA, or as called today, 401K). Before ’74, a company’s pension plan provided a paycheck for life. After 1974, defined benefit pension plans shifted to defined contribution retirement plans. This means they had to save their money for retirement. Another cash heist was created by millions of people being forced to shove their money into the stock market and savings accounts, for mutual fund managers and bankers to play with until the workers retired. If the pension plan runs out of money or a stock market crash occurs, the people are SOL(out of luck and on their own).

2007

In 2007, when sub-prime borrowers could not pay their mortgages any longer, the expansion of debt stopped and the debt market collapsed. This led to the financial crisis we are in today.

The United States has financed it’s insane debt by selling the debt to Europe, Japan, and China. If these countries lose confidence in our government and currency, another financial crisis will occur. And this is now starting to happen, as there is global talk of China trying to replace the dollar with the Yuan as the reserve currency of the world.(I don’t see this happening, at least anytime soon – but there’s talk about it – google it…) If you and I stop buying homes and using credit cards, the crisis gets worse, and as you probably know, it is very difficult right now to obtain a mortgage or get a new credit card or an increase in your credit limit. If you already have a mortgage, try getting a home equity loan…

SILVER LINING – CONCLUSION

All of this does create an oppertunity for ANYONE who is willing to invest in their financial education and benefit from the circumstances. Assets are cheap. It is now more important than ever to invest in a financial education centered around leveraging good debt(debt used to buy assets that put money in your pocket), and cash flow(money that comes to you monthly over and above what you are paying as a price for the debt). I have talked a lot about silver and gold lately, and while they are a great hedge against inflation, it is important to also invest in assets like businesses and real estate, which will put money in your pocket. In the event of hyperinflation(which we will see, just like Germany did pre-World War II), precious metals will have a HUGE dollar amount pegged to them, but remember, dollars will be worthless. You will be able to trade them for other assets like food, real estate, etc, but it is important to have assets that provide you cash flow. Even if the cash is not in the form of US dollars. A good business provides REAL value, so you will always get something in return for what you are providing.

I strongly suggest, encourage, and recommend that you verify everything you see and read. Form your own opinions, but I sincerely hope these facts help shine some light on the truth for you.

-Josh