Crazy Theory Syndrome

Perhaps the two crazy theories to top the list are:

(1) Canadian Tax Protesters are claiming that there is a legal person who has to file an income tax return, and then there is the natural person who the income belongs to therefore that person is not subject to income tax. The Canadian Tax authorities have sent letters warning this will not fly.

(2) The Trillion-Dollar Coin where a technicality in US law is cited claiming the Treasury has special discretion to create platinum coins of any denomination. Therefore, US Secretary of the Treasury could then deposit these Trillion-Dollar coins in its bank account via the Federal Reserve and then sell bonds to raise money to pay down the debt? The whole idea only get around the debt ceiling for under the legal authority t

  • he US Treasury Mints the coin, which is the sent to the Federal Reserve, and then the Fed journals in $1 trillion to the Treasury’s account, and that can be used to fund the debt. This is by no means a solution for the debt crisis. It is a technicality to exceed the debt ceiling which they did by just agreeing to postpone it.




Taxes, Taxes & more Taxes – Now Russia Joins the War

Russia Raids Rusal

Rusal office (file pic)

Russian tax officials have raided the offices of the world’s largest aluminium producer, Rusal. The government is engaging in an investigation into alleged tax evasion. This is becoming a worldwide problem. Fiscal Mismanagement lead to oppression. They bribe the public to vote for them, then they turn against the people to pay for it.


The United States is losing all respect for its legal system Worldwide. The view of the United States is New York is no longer a safe place to invest and certainly after M.F. Global, it is not fit to keep your money there. Everyone is asking WHY did Wall Street executives escape jail time for the financial crisis? The ONLY mainstream press to address the issue is always outside of New York. Four years after the crisis, not one banker has been prosecuted for bad loans that brought world economies to the brink of collapse and has resulted in escalating national debts, rising taxation, and the fall of democracy. Between Bin Laden and the New York Bankers, it is a toss-up as to who has destroyed more of our individual rights. Now Canada chimes in.

Visit Italy & They Seize Your Jewelry


Diego Maradona, the Argentine soccer star who played for Italy between 1984 and 1991, is charged with owing Italy more than 32 million euros in tax. Upon visiting Italy, on one occasion they confiscated a diamond earring and auctioned it off. Then again they took his watches and sold them upon visiting Italy.

The real issue is how desperate these governments are getting. We are all being confronted by something we have never seen in most of our lifetimes – border checkpoints, complete with gendarmes examining cars, liquids, checking passports, and all under the pretense of terrorism, while expanding it into financial issues all about money. The money laundering laws that were enacted against terrorists and drug dealers, are now applied by bureaucrats to any money being moved whatsoever the form where taxes are not declared. Will this come down to the point that if your wife fails to declare the value of her engagement ring it will be confiscated as money laundering? Put a gold coin in your pocket and fail to report that, it can be confiscated. When I went behind the Berlin Wall before it fell, upon entry and leaving you had to list everything on your person. If you failed to list $5, they confiscated it. We have became indistinguishable from the Communist Border Guards who eyed up everything you had.


Marxism has utterly destroyed everything. They stand up and lie and portray it is the rich not paying their fair share. They omit explaining where all the money is going that they do collect – almost 70% to interest! That does not help the poor – 40% is exported to pay foreign bond holders. This is a complete nightmare.

The US mainstream press will NEVER report the truth. They wonder why newspapers are going the way of the DoDo Bird. That is why they needed the kill switch to stop the only free press around.


So what comes next? TSA computers linked into the IRS and they start to follow Italy and confiscate whatever they want? Bend over – cough.

Very Disturbing

Obama And Biden Unveil Proposal To Decrease Gun Violence In U.S.

Dave Janda, host of Operation Freedom, had a guest on his show who informed the listeners that based upon information he said came from a high level military officer that there is an Obama Administration’s new “Litmus Test” whereby senior officers are being asked would they be willing to order troops to fire on Americans if they were unwilling to give up their guns and ammunition. That interview went viral over the Internet and some 40 military officers have come forward confirming that information.

Domestic civil unrest military exercises are becoming common. Armed military vehicles are patrolling Wisconsin neighborhoods as part of a civil unrest training exercise on behalf of the United States Army Reserve. It is clear that the government knows what is coming. It only need look at Europe. It will defend itself and it is a crime to call for such an uprising as the Founding Fathers did against the King. The King is dead – long live the President.

A series of recent military exercises in major cities including Miami and Houston have alarmed residents and even local officials who were largely unaware that the drills would be taking place in their jurisdictions. The Obama Administration has enacted countless laws stripping Americans of all rights. He is out to disarm Americans and surrounds himself with children as if he really gives two-shits. His controversial “urban-warfare” scenarios included low-flying black helicopters firing blanks out of machine guns, heavily armed troops rappelling onto buildings, and all out assaults. These “urban warfare” drills are taking place all over the country. How can this man stand there and pretend this is about street violence when in fact it is about disarming Americans when socialism collapses as they know it will. And you really think they will surrender all authority and adopt a gold standard yielding power? Good one!


A Lesson from History – The Nika Riots

Theodora was the wife of Justinian I (527-565) who proved herself a worthy and able leader during the Nika Riots. There were two rival political factions in the Empire, the Blues and the Greens, who started a riot in January 532 during a chariot race in the hippodrome. The riots stemmed from many grievances, some from Justinian’s and Theodora’s own actions. The rioters set many public buildings on fire, and proclaimed a new emperor, Hypatius, the nephew of former emperor Anastasius I. Unable to control the mob, Justinian and his officials prepared to flee. Theodora spoke out against leaving the palace and underlined the significance of someone who died as a ruler instead of living as an exile or in hiding, saying “purple makes a fine shroud” meaning better to die an emperor fighting to keep his throne than to run away in fear and live as an exile.

She persuaded her husband to stay. She then ordered the loyal troops led by two reliable foreign officers, Belisarius and Mundus, to attack the demonstrators in the hippodrome. Troops inside Constantinople refused to attack their own people. According to the historian Procopius, the foreign troops attacked the hippodrome, killing more than 30,000 citizens. What is often overlooked is that the troops were stationed outside of Constantinople. They were NOT native sons of that region. Hence, they had no problem killing Greeks since they were not Greeks. The question being asked will American troops fire on American citizens? This must be understood within the broader context. Use troops not from the same place and there is no problem. It may be get even time.

It is Always a Question of TIME

One reader wrote a question many seem to have:


Taking the Italian issue one step further—

Could we then deduce that if the Italians don’t want more austerity and that type thinking does spread to the rest of Europe, because the handwriting is on the wall for the people in power—then they get the opposite of austerity?  Which is good for gold?  And that’s why gold is rallying?


Eventually, we are looking at the free markets compelling government to enter monetary reform. There is a HIGH probability that we will end up with a two-tier monetary system whereby there will be a One World RESERVE Currency for international transactions and each country maintaining its own separate currency. This is most likely the configuration we will adopt. There will be no gold standard or anything of the sort. We have actually gone far beyond that and entered the new realm where money is truly the productive capacity of a nation that is reflected much as a share in a corporation rises and falls according to confidence.

Gold’s role in this is to make the transition much as tangible assets allowed wealth to be transferred between currencies in Germany or after the Sovereign Debt Crisis of 1931. Tangible assets also served as the transition after World War II when completely new currencies were born leaving behind old debts.

We will be going over this at the Sovereign Debt Crisis Conference on March 16th in Philadelphia.

It is only a question of time. The current system has an expiration date attached. Even if you hunt down all the rich, kill them, and confiscate all their assets, it is still not enough to solve the problem. So what will you do for the next year? Patience is required.

The Rumor that Never Died – Redbacks

One reader asked:

“I once, several years ago, read that the US had already printed “redbacks”, a US dollar to be used internationally; that is, the greenback would be used in the US for domestic trade and the “redback” would be used for international trade and it would have a higher value.

Do you have any knowledge of this and might it be true?”


That rumor is what drove the dollar to record highs going into 1985. Between 1980 and 1985 at seminars in Europe, the number one question I was asked: “Would the US adopt a two-tier dollar to escape from its debt.” I explained that I was perhaps one of the few Americans that would even understand the question. The US had a two-tier currency during the 1870’s because silver was demonetized domestically, since Europe and the US adopted a pure gold standard in 1873. China, however, clung to a pure silver standard. Thus, to trade in Asia, they would accept silver dollars. Hence, the US stopped production of silver dollars domestically but minted “Trade Dollars” for external use only.

In 1980, the US National Debt hit $1 trillion. The Eurodollar deposits where also at about $1 trillion. Europeans were convinced that the US would adopt a two-tier currency where the external dollar would be worth LESS (not more), and hence that rumor shifted capital so that the Eurodollar deposits fell by about 50% and the money was moved to domestic deposits. The more BEARISH everyone became on the US debt, the more BULLISH the dollar became. It was the mirror image of fundamental analysis.


The rumor was false. No one in Washington would ever ponder such an idea for they were clueless about monetary systems. Nevertheless, the Europeans were convinced this would take place and moved so much cash driving the dollar higher that they then formed G5 at the Plaza Accord to force the dollar back down.