Archive for August, 2009

Bernanke’s Victory Lap

August 31st, 2009 10:23 pm  |  by  |  Published in Banking, Big Government, Commentary, Debt, Economics, Federal Reserve, inflation, Money  |  1

From John Browne – Senior Market Strategist, Euro Pacific Capital

Despite vocal criticism of the Federal Reserve’s stewardship of the economy over the past decade, President Obama’s renomination of Ben Bernanke to a second term as Fed Chairman nevertheless served to reassure and boost financial markets. While it is true that markets tend to crave predictability from government, rewarding the continuation of horrible Bush-era policies is perhaps pushing the boundaries of nostalgia. More interestingly, President Obama, who campaigned for ‘change,’ has clearly come down once again on the side of continuity.

In supporting his nomination, the President described Bernanke as “an expert on the causes of the Great Depression,” reminding everyone that Bernanke had “approached a financial system on the verge of collapse with calm and wisdom.” These were fine-sounding words, but they ignore the crucial fact that long before he moved into the Chairman’s office, Bernanke was an active member of the Federal Open Markets Committee, the Fed’s ruling body which systematically stoked and disguised the American financial crisis. While there, he consistently downplayed the danger signs that others brought to his attention. It appears that these experiences failed to widen the Chairman’s perspective, as he continues to ignore the same voices now warning that current policy will make our fiscal wounds deeper.

From his senior position under former chairman Alan Greenspan, Bernanke watched as President Bush doubled the U.S. Treasury debt to $10 trillion and raised the total federal debt to a staggering $48 trillion. He stood on the sidelines as Greenspan pushed a decline in the dollar’s value of more than 50 percent since 1987. This effectively robbed not just taxpayers, but all holders of U.S. dollars of half their wealth!

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Jake Towne’s Interview with the March of Liberty

August 31st, 2009 10:00 pm  |  by  |  Published in Activism, Bailouts, Banking, Big Government, Civil Liberties, Commentary, congress, Constitution, Debt, Economics, Federal Reserve, government spending, Liberty  |  Comments Off

Yesterday, August 30, 2009, I had the pleasure to speak with Jason Wood on his show, The March of Liberty on blogtalk radio.

I was pretty thrilled to have enough time in the interview to cover the suppression of the gold price in Part 6 and Part 7, which I had written about earlier in “Unlocking the Money Matrix – The Summers Gold Price Suppression Scheme.”   This is a highly important topic that if you are unaware, I suggest you educate yourself.

In Part 1, I rehashed my experiences on Saturday’s protest in Lancaster of the Big Brother surveillance cameras and the Fourth Amendment.  Part 2 covered the two-party system and 9/12 protests across the nation.

Part 3 was really interesting as I got to explain the “Real Interest Rate“ to listeners and also chat about the campaign’s new Income Taxplank.  In Part 4, I relate that although Republicans especially sometimes talk a good talk, they are just blowing hot air unless they want to discuss a sound currency.  I delved into the Treasury market in more detail in Part 5.  In Part 8, I shot off a final salvo at the current state of government and concluded the interview.

All parts are available in the playlist here:

httpvp://www.youtube.com/view_play_list?p=06F917FD6218E011

The Attack On Rand Paul Begins

August 31st, 2009 8:15 am  |  by  |  Published in Activism, Commentary, Election, Fund Raising, government spending, Liberty, Maven Commentary, Rand Paul, Ron Paul, Ron Paul Republicans, Taxes  |  11 Responses

We long time Ron Paul supporters got used to the typical underhanded attacks “our” candidate received during his Presidential bid. They became predictable and passé. Now that Rand Paul has proven he is a viable candidate in the 2010 Senatorial race in Kentucky similar attacks have begun.

With Ron Paul many of the attacks were leveled by the media itself. We even published a rather popular satire piece during the campaign called “The Official Media Guide To Attacking Ron Paul“.

Thus far with Rand Paul, most of the attacks are coming from the Left and the neo-conservative establishment friends of his Republican primary opponent Trey Grayson. The attacks themselves are quite typical.

The Left enjoys pointing out that white supremacist organizations have noticed Rand Paul’s campaign and support him. They like to point out that such extreme groups and individuals supporting Paul means that Paul himself somehow condones such beliefs. This is ludicrous. Guilt by association attacks are for the feeble-minded. No one, not even the Left’s Messiah Obama can control who chooses to support him.

Extremists like Jeremiah Wright and Louis Farrakhan both support Obama, but I don’t attack Obama because of it. Even though a much stronger case could be made for doing so due to the fact that Wright was Obama’s pastor and mentor for 20 years or so.

Believing in individual liberty and white supremacy are impossible bedfellows. Attacking Rand Paul this way tells us more about the attacker than the attacked.

The attacks from his own party are right out of the political attack playbook. What makes it humorous this time is that the charges against Rand Paul suggesting he isn’t a “real Republican” could be more easily made against his opponent. Trey Grayson used to be a Democrat and campaigned for Bill Clinton in the 90′s. At that time Rand Paul was busy founding an anti-tax group in Kentucky.

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4th Amendment Speech Against Lancaster Camera Surveillance

August 30th, 2009 8:43 pm  |  by  |  Published in Activism, Commentary, Constitution, Liberty, privacy  |  3 Responses

A speech informing citizens of the Fourth Amendment rights and my thoughts on my visit to Lancaster and meeting with Sam Ettaro of Republic Media and Renee Baumgartner yesterday.

by Jake Towne, the Champion of the Constitution

Originally published August 30, 2009 at http://towneforcongress.com/economy/4th-amendment-speech-against-lancaster-camera-surveillance

Sam Ettaro of Republic Media invited me to visit Lancaster, PA, in the middle of rural Amish country and speak at an event he organized there to stop the camera surveillance program there. I was glad to have a chance to give a speech on the 4th Amendment. Although many privacy advocates today believe this issue to be a muddied one, courtesy of the Supreme Court, if you read the Constitution it is crystal clear. However, since I had never been to Lancaster recently, I had no idea how widespread the camera system was. This story has national implications as the city is a prototype site for possible roll-out to other towns and cities across the USA.

Lancaster is a small town of about 50,000 people. They have the country’s oldest farmer’s market, and many of the buildings are pretty, historic colonial buildings. As I drove through town, sure enough the cameras were looming above each intersection. The march began at a baseball field with four cameras overlooking it, and proceeded through a residential area to Lancaster’s downtown with more homes, public buildings and many businesses. Personally, I felt pretty creeped out and found myself scanning the skies for the next camera. Can you imagine strangers with the ability to track your every move throughout a city?

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The FED Dances as Rome Burns

August 28th, 2009 6:11 pm  |  by  |  Published in Bailouts, Banking, Big Government, Commentary, Court Cases, Federal Reserve, government spending, Liberty, Money  |  2 Responses

Originally published August 27, 2009 at http://towneforcongress.com/economy/the-fed-dances-as-rome-burns


In a 47-page judgement, U.S. District Judge Lorena Preska recently ruled that the Federal Reserve, America’s quasi-private central bank, must reply to Bloomberg News’s request under the Freedom of Information Act (FOIA) by August 31st.

The senior legal counsel for the FED, Ms. Yvonne Mizusawa, claims that the Fed and U.S. banks would suffer irreparable harm if details of the loan programs were made public.  The claim was initially filed by Bloomberg last year during the public outcry following October’s Banker Bailout.  So far the names of the recipients of over $2 Trillion USD in off-balance sheet transactions are secret.

Clearing House Association LLC, an industry-owned group in New York that processes payments between banks, filed a declaration that accompanied the request for a stay.  Per Bloomberg, Norman Nelson, VP and general counsel for the group, said, “Our members have accessed the discount window with the understanding that the Fed will not disclose information about their borrowing, especially their identity.”  The group consists of the following banks: ABN Amro Holding NV, Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc., Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase Inc., UBS AG, U.S. Bancorp and Wells Fargo & Co.

The FED has the authority to create new money by writing a check on itself, a power that has been described as creating money “out of thin air.”  More details can be learned from this mini-series, “Fractional Reserve Banking in Pictures PART 1/2” and “Yes, Virginia, There Are No Reserve Requirements PART 2/2.”

My comments are simply that the FED may be correct in its assessment of the damage the information’s release may cause, but by no means should this be used as a sanction to hide from the public.  Readers of this column are very familiar with my views on the American banking system, as can be read in “The FDIC is Bankrupt” and “FDIC: “We Aren’t Bankrupt and Everything is A-OK”   This is shaping up to be a very important event and may affect your personal financial future.

August 27, 2009 by Jake Towne

FDIC: “We Aren’t Bankrupt and Everything is A-OK”

August 28th, 2009 6:07 pm  |  by  |  Published in Banking, Big Government, Commentary, Debt, Economics, government spending, Liberty, Money, national debt  |  Comments Off

“The banking industry… can look forward to better times ahead.” – FDIC Chairwoman Sheila Bair, August 2009.

Originally published August 27, 2009 at http://towneforcongress.com/economy/fdic-we-arent-bankrupt-and-everything-is-a-ok

In my last piece, “The FDIC is Bankrupt”, I reported that the Deposit Insurance Fund (DIF) that the FDIC uses to insure banking deposits was negative following the $2.8 billion August 14th failure of Colonial Bank in Alabama. However, today the FDIC released it’s latest quarterly report and reports the DIF is not yet depleted and I was incorrect. To achieve this feat, the FDIC assessed “special assessment fees” of $9.1 billion and the bailout program, Temporary Liquidity Guarantee Program (TLGP), added $1.1 billion to the DIF. Special assessments in the past have been rarely used since the early 1990s – in 2008 Q2 just $0.6 billion was raised, and in 2006 Q2 the total assessments were just $0.007 billion.  (photo)

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Protest Against Privatized Camera Surveillance System in Pennsylvania

August 28th, 2009 5:56 pm  |  by  |  Published in Activism, Big Government, Civil Liberties, Commentary, Constitution, Liberty, privacy  |  1

I will be speaking at this event tomorrow, Saturday August 29th. I will not stand idly by while Orwellian surveillance schemes are implemented in my country. Where do you stand?

Originally published August 28, 2009, at http://towneforcongress.com/economy/press-release-protest-against-privatized-camera-surveillance-system-in-lancaster-pennsylvania

FOR IMMEDIATE RELEASE:

In Lancaster, Pennsylvania on Saturday, August 29, 2009, the Citizens Against Public Surveillance (CAPS) is holding a large protest against the implementation of surveillance cameras deployed in Lancaster, PA, and is inviting all who want a voice in this matter to attend. CAPS is a recent offshoot of the Lancaster Coalition for Sensible Security (LCSS), and is organized to end the hasty deployment of the privately run, Orwellian surveillance system in a city of 55,000 people with a 25% poverty rate.

The CAPS protest will be held this Saturday at Farnum Park (Water & Conestoga Streets) at 1:00 pm on Saturday, August 29, 2009. The protesters will then march to Lancaster Square at 2:00 pm for the rest of their rally. The theme of the rally is – “Take the cameras down.”

More information can be found at www.stopthecameras.com and a video describing the issue complete with interviews with Lancaster public officials can be viewed here. Rally is rain or shine.

Renee’ Baumgartner (CAPS) will speak in Lancaster Square, along with others that are concerned about the lack of accountability, oversight, and transparency for this system of 165 surveillance cameras. The system is designed to keep the public under constant general surveillance.

Jake Towne, 2010 candidate for U.S. Congress in Pennsylvania’s 15th District, will be speaking about his experiences with camera surveillance while he was living abroad in communist China and how this camera system is a blatant violation of our rights as protected by the Fourth Amendment of the United States Constitution. Towne’s website is TowneForCongress.com.

PRESS CONTACTS:

Renee Baumgartner 717-587-9054 info@stopthecameras.com
www.stopthecameras.com/

Sam Ettaro 814-553-9372 [link edited for length]

Jake Towne’s Income Tax Plank

August 28th, 2009 5:46 pm  |  by  |  Published in Activism, Big Government, Commentary, Constitution, Liberty, Taxes  |  1

“In a Time of Universal Deceit, Telling the Truth is a Revolutionary Act.” – George Orwell, author of 1984

Originally published August 26, 2009 at http://towneforcongress.com/economy/jake-townes-income-tax-plank-1

Summary: The federal income tax is an unnecessary and immoral tax. I am in favor of abolishing the federal income tax and eventually the entire IRS. YOUR income from YOUR labor belongs to you and no one else, especially the government, has the right to steal it from you. Most Americans are unaware that while the government collects $1,200 billion in federal income taxes and collects roughly $3,000 billion in total taxes, the fact is that “only” $67 billion is necessary to run the executive, legislative, and judicial branches, which includes the FBI and federal court system. (1) (2) (3) When one compares this amount to the Banker Bailout of October 2008 for $800 billion and the Obama Stimulus Plan for $1,100 billion with interest, one wonders why not bailout the taxpayer in a plunging economy instead?

Although a removal of this tax will be strongly opposed, likely not even addressed, by my Republican and Democrat opponents, I am extremely confident that this is the best step for each individual and our country as a whole to achieve prosperity since the tax’s only purposes are to redistribute wealth and steal the fruit of one’s labor. The elimination of this tax will be paid for by ending the costly overseas military empire of 761 bases in 147 countries which includes 54,974 soldiers based in Germany, and 34,039 soldiers based in Japan, although WWII ended 64 years ago. (4)

Since eliminating the tax may not be politically possible while I am in office, I also pledge to aggressively fight to abrade the strength and breadth of this tax by introducing a series of bills that legislate changes such as no income tax withholding from paychecks, no taxes on tips, raising the standard deduction, removing taxes on capital gains and interest, and many more. I am open to supporting other transition plans and ideas, but all must undeniably reduce the tax burden, and not be “revenue-neutral.”

I recognize that most people have been engrained with the idea that we must have an IRS income tax, that everyone must “pay their fair share” to the country. Although I will grant that an absence of taxes is impossible, nothing could be further from the truth than to claim the federal income tax is necessary. Therefore, here is the truth with sources to support my reasoning:

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Does Freddie Mac want to blow a new housing bubble?

August 28th, 2009 5:41 pm  |  by  |  Published in Big Government, congress, DownsizeDC.org, Economics, Market Regulation, Money, Politics  |  1

D o w n s i z e r – D i s p a t c h

Quote of the Day: “The state of California is committed to assisting educators achieve the dream of homeownership.” — John Schienle, Director of the California Housing Loan Insurance Fund


Freddie Mac is supporting a California program that allows teachers to buy a home with . . .

* Only $500 down
* Relaxed credit requirements

This is exactly the kind of thing that inflated the housing bubble in the first place, and got Freddie Mac in so much trouble that it had to be bailed out by the federal government, at YOUR expense.

The program is also being funded by the state of California, which has been teetering on the brink of bankruptcy.

And there’s also a corporate welfare aspect to this too. Only Wells Fargo will be able to make these subsidized loans.

All of this is so typical. Politicians constantly . . .

* Cause problems
* Blame the problems they create on the free market
* Use the problems they create to grab more power and money that they use to reward special interests
* And then go on to create even bigger problems, repeating the same mistakes

This new Freddie Mac program is a classic example.It makes me so angry I just sent my Congressional employees a message using DownsizeDC.org’s “cut spending” campaign.

I urge you to do the same, and say something like what I said in my personal comments . . .

Please cut any of my tax money that’s going to Freddie Mac. I understand that Freddie is participating in a California program for teachers to buy homes with only $500 down and relaxed credit requirements. This is exactly the kind of thing that inflated the housing bubble and led to Freddie having to be rescued with my tax money. STOP THIS FROM HAPPENING!

You can send your message here.

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How can legal tender be illegal?

August 27th, 2009 3:51 pm  |  by  |  Published in Activism, Banking, Big Government, congress, Debt, DownsizeDC.org, Economics, Federal Reserve, gold standard, inflation, Liberty, Money, Politics  |  51 Responses

D o w n s i z e r – D i s p a t c h

Quote of the Day: The government called three accountants to testify. The defense asked each one, “What is the proper way to calculate income for purposes of the Internal Revenue Code if you are paid in a gold coin that has a $50 face value on it?” All three of them responded, “I do not know; I’ll have to research that.” — Mike Zigler, reporting on the 2007 case against Robert Kahre that ended in a hung jury


Robert Kahre is facing up to 296 years in prison. His crime? He hired workers on mutually-agreed terms, and paid them in gold and silver dollars rather than in Federal Reserve dollars.

First, some background . . .

* The face value of the U.S. Mint’s gold and silver coins are legal tender, meaning they must be accepted in payment of debt
* But a Gold Eagle coin that has “$50″ printed on it is legal tender only up to $50, while its gold content is worth about $1,000 in Federal Reserve notes
* No law or IRS regulation requires that receivers of Gold Eagles and other U.S. Mint coins must report the market value of the coins instead of the legal tender value

After extensively researching the issue, Kahre . . .

* hired workers as independent contractors, so he would not pay the payroll tax for their labor
* paid them in gold and silver coins, whose face value – that is, legal tender value – was so low that the workers legally didn’t have to report it as income to the IRS

For instance, if a worker was annually paid in gold coins with a legal tender face value of $2,000, the market value of the gold content in those coins could be $40,000, but only the legal tender face value of $2,000 would theoretically count as taxable income. That face value of $2,000 is low enough to be non-reportable to the IRS. But . . .

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