I have been thinking lately about how best to describe Ranting Andy Hoffman. I have decided that the term that best describes Andy is an “angry whistleblower” and the object of his anger is Wall Street, a place he knows well, having worked for many of the largest brokerages in the business for well over a decade. For those of you who are taken-aback by Andy, I suggest you re-think your position and give him credit for shining a light on the heartless, unethical, strictly profit-oriented polices that are executed to perfection by all of them. Bill Murphy calls them “The Bums.” I call them a disgrace – they have plunged a knife into the heart of the economy in order to walk away with obscene bonuses. They are true Sociopaths, with no empathy for those they lead down the road to ruin solely for a bigger payday. Their partners in crime reside in Washington DC, a place populated by many of the graduates of the large NYC “too-big-to-fail banks. They advise the President. They make policy from the halls of the Treasury Department. They work day and night – not for us, but for their buddies at JPMorgan and Goldman Sachs, and friends. How can this be? Because we have allowed it to happen, that’s how.
I say until John Corzine does some hard time for heading a firm that literally stole over a billion dollars of client’s funds, there is no justice – at least not for those at the top who spend millions to buy the favor of the Washington elite. Don’t hold your breath on the Corzine episode. He organizes $35,000 a plate fundraisers for Pres. Obama. He ain’t going ta jail! How about the CME – the billionaires who own the firm that controls the Chicago Board of Trade and the Comex. They make sure that the small fry (us) gets hosed while the bullion banks run roughshod over the markets. As our friend Chris Powell of GATA says, there are no free markets, only manipulations.
Steal a loaf of bread and go to prison. Steal a billion and get a $20 million dollar fine and get off scot-free – and with a huge profit. That’s the new American way.
And then there are people like Backwoods Jack who think it is un-American to complain. “Be proud to be an American,” he says, “Where else would you rather live?” Proud? That may have been true when I was a kid, but how can I be proud of the legacy my generation has left for our grandchildren? The middle class is decimated. There are very few good paying jobs waiting for our kids when they graduate college – and $100,000 or more in debt. Record numbers of our senior citizens are forced to live on food stamps, Social Security checks and Welfare. Because the banks are not paying enough interest, it is impossible for people, even wealthy people, to live off of CDs or bonds. You can thank the Fed and their “zero” interest rate policy for that. That forces them to buy annuities and long-term bonds that will turn into a disaster when, not if, interest rates rise and inflation dwarfs their interest payouts. That forces them to put their money into the stock market. How dangerous is that? Ask Richard Russell. He is as worried as I have seen him since 1987 and 2000, before the market crashed. He wants all of his subscribers out of the market, on the sidelines and only in cash and gold. We have allowed the banks to knock us to our knees. If you are one of the 5% or 10% at the top, be thankful, but for most Americans, the future will not be rosy. We have been warned, time and time again.
Thomas Jefferson, said:
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale. –Thomas Jefferson to John Taylor, 1816.
Andrew Jackson said, referring to the Second Bank of the United States (aka our current Federal Reserve):
It is maintained by some that the bank is a means of executing the constitutional power “to coin money and regulate the value thereof.” Congress have established a mint to coin money and passed laws to regulate the value thereof. The money so coined, with its value so regulated, and such foreign coins as Congress may adopt are the only currency known to the Constitution. But if they have other power to regulate the currency, it was conferred to be exercised by themselves, and not to be transferred to a corporation. If the bank be established for that purpose, with a charter unalterable without its consent, Congress have parted with their power for a term of years, during which the Constitution is a dead letter. It is neither necessary nor proper to transfer its legislative power to such a bank, and therefore unconstitutional.
Dwight D. Eisenhower said:
In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists, and will persist.
Howard Buffet, father of the revered Warren Buffet said:
I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it, unless you are willing to surrender your children and your country to galloping inflation, war and slavery then this cause demands your support, for if human liberty is to survive in America, we must win the battle to restore honest money. There is no more important challenge facing us than this issue — the restoration of your freedom to secure gold in exchange for the fruits of your labors.
And my generation didn’t heed the warnings. And look what we got!
Shame on us! And now, with the Patriot Act and other freedom-sapping laws and decrees, it is becoming dangerous to even talk about these things. That is why people like Bob Chapman, The Aden Sisters and Jim Willie write from outside of the US. Even Doug Casey is considering living outside of the US. I wonder how long it will be, before websites like ours are shut down?
I don’t have to do this for a living anymore. But I have a sincere desire to help as many people as I can to better themselves and to see what is really happening. Does that make me un-American? I don’t think so. If you were to ask Backwoods, he might disagree.
And I say to you, Backwoods Jack, I have no interest in leaving America. But when it comes to moving from Minneapolis to Miami for warmer weather, well, that’s another matter. I am proud to admit that Susan and I have become Snow Birds. Moving from Minneapolis to Miami for the winter doesn’t mean we don’t love Minneapolis anymore and calling attention to the problems facing our once-great nation doesn’t make us Un-American. Until more Americans take a stand and do something about the sad state of affairs here in America, things will not improve, they will only get worse.
Although I am not “political,” I still say – only Ron Paul (and he is not perfect) is talking about the important issues. What could possibly be more important than balancing the budget, bringing home our troops, honoring The Constitution and abolishing the Fed and honest money? It’s a shame he isn’t flashier and doesn’t project more charisma. On the other hand, Obama is all flash and no substance. Now a days, flash wins elections (Kennedy, Clinton, Obama). Gingrich is very bright, and an excellent debater but he will not do what has to be done to stop the hemorrhaging. Even if it is “a wasted vote,” I will proudly vote for Ron Paul. The better the showing he makes, the greater the (slim) odds are that eventually someone will take office that is “The Real Deal.” The media is biased against Paul and ignore him or brushes him off as having no chance of winning. The old guard politicians fear him and the big money banks and the Fed will never allow him to be elected, so his chances to become president are slim to none, and Slim left town. Too bad, because without his guidance, we will sink further into the abyss, regardless of who occupies the White House.
We are moving toward hyperinflation, if we do not address our annual deficits – in a serious way and immediately! In fact, it may even be too late at this point. Cutting a trillion or two over the next 10-years (as the National Debt continues to grow at over a trillion per year) is meaningless and even that pathetic goal seem out of reach. Anything short of a balanced budget and real debt REDUCTION is political garbage. If that causes a decade of pain, then so be it but at least we can tell our grandchildren we tried. Better a Depression now than Hyperinflation in a few years. Bob Chapman says we are headed toward BOTH. The big losers will be those of you on fixed incomes, like Social Security and pensions. Very few Americans will come through this mess without a great deal of pain and a serious reduction in our standard of living. Gold and silver will help, but even at the peak of this on-going bull market, I figure less than 5% or 10% of Americans will ever own enough precious metals to make a difference.
I hope you, our readers, who are not part of the clueless majority, will take action to protect your wealth with gold and silver. Not to do so will be the biggest mistake you ever make. Your money managers and financial advisors, who steer you elsewhere, will not be around to help you. They will be too busy asking themselves, “What the hell happened???” They will go down the drain along with those who take their advice and they will be too busy feeling bad for themselves to worry about you.
One of my favorite readers, Jeni, sent me the following email last night:
I just went to see my tax man and he said I was a gambler. He has all the arguments that Backwoods Jack has. I told him I owned a house and land and he wanted me to buy an annuity and stocks… Because he believes and quotes how gold and silver have gone nowhere though he bought gold at $350. I was in shock when I left.
I wrote Jeni back and said:
I’d get a new tax man! Anyone who could watch gold go from $350 to near $1,700 and tell you that you are a gambler is a FOOL! He is the gambler! He is gambling his future, and trying to get you to gamble yours with the belief that the dollar will not succumb to inflation and that interest rates will remain permanently low. What a fool!
Jeni knows better. She has been reading The Miles Franklin Report for a long, long time and she is a fan of Ranting Andy Hoffman.
Andy’s “Rants” are starting to rub off on me. And to that I say thank you Andy. Your passion and calling things as they are is a blessing (to those who listen).
PS: For those of you (are you listening, Backwoods?) who say, “What do David and Ranting Andy know?” I offer a few comments from that billionaire scoundrel George Soros:
George Soros: Collapsing US Economy to Spark Street Violence -(moneynews.com)
Monday, 23 Jan 2012 07:12 AM
By Forrest Jones
As the U.S. economy worsens, protests such as those carried out by the Occupy Wall Street movement will turn ugly, breaking down into waves of violent unrest across the nation, says billionaire financier George Soros.
“It will be an excuse for cracking down and using strong-arm tactics to maintain law and order, which, carried to an extreme, could bring about a repressive political system, a society where individual liberty is much more constrained, which would be a break with the tradition of the United States,” Soros tells Newsweek.
Unrest in the United States will serve as one of many symptoms of a worsening global economy, which makes wealth preservation a priority over getting rich.
“At times like these, survival is the most important thing,” Soros tells Newsweek.
“I am not here to cheer you up. The situation is about as serious and difficult as I’ve experienced in my career,” says Soros, made famous by betting against the pound in 1992 and pocketing $1 billion in the process, he said.
“We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression. We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse,” he said.
“The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.”
READ THE FULL ARTICLE
Lesson #1 – Why the U.S. was downgraded:
U.S. Tax revenue: $2,170,000,000,000.
Fed budget: $3,820,000,000,000.
New debt: $1,650,000,000,000.
National debt: $14,271,000,000,000.
Recent budget cuts: $ 38,500,000,000.
Let’s now remove 8 zeros and pretend it’s a household budget:
Annual family income: $21,700.
Money the family spent: $38,200.
New debt on the credit card: $16,500.
Outstanding balance on the credit card: $142,710.
Total budget cuts: $385.
Lesson #2 – Here’s another way to look at the Debt Ceiling:
Let’s say, you come home from work and find there has been a sewer backup in your neighborhood….and your home has sewage all the way up to your ceilings.
What do you think you should do?
Raise the Ceilings?
Pump out the sewage?
It is not economic weakness that drives gold prices higher. It is the policy response to that economic weakness. A weaker economy doesn’t necessarily mean that gold prices will go higher, but if this is going to be combated by aggressive Fed easing of monetary policy, such as quantitative easing, then gold prices will rise significantly.
U.S. “real” interest rates are an effective indicator for gold prices over the medium term.
Expect resistance at $1,680 and $1,700. If gold can overcome these levels, you can forget about the bears, like Larry Edelson. They will be off hibernating.