The Meltdown of the American Economy and the Constitution Under Attack

This is the video that is about to go out to the entire world watch this right now. We can't do it. Okay, which runway would you like a T-T-T-T-T-T. He was not breathing. They attempted CPR along the route to the hot. Okay, now I have decided to stop. I've had sex with women. Can you please? No reforms I'm proposing would not apply to those who are here illegal. We interrupt our program to bring you this important message. The fall toll to get it. Total collapse of the system. So usually governments in this situation what they've done is to monetize and try to get rid of the dead's reinference. What can the US do next time around? Let's say in 2012 or 2011 or 2010, they can start getting worse. What's the US going to do? Quintu, bullets, dead again. The purpose of the government is to depreciate the currency. To depreciate the value of the money. And who suffers the most from that? Well, the poor people do. Because their prices go up. To Keynesian solution to recessions remember. The Keynesian solution is keep the boom going. Somehow, keep interest rates super low. Just keep fueling it. There's no reason that we shouldn't jump off this train even if it's headed for a cliff. We step on the accelerators. Keep it going. If we keep stimulating, if we keep printing, if we keep failing out with it a couple of years, we're going to have a currency crisis. And with that, heans is the dollar is going to collapse. And the cost of living is just going to run out of control. The Dow Jones is now up 70% from its low in March of 2009. Oil is up 86% from its low in February of 2009. Copper is up 172% from its low in December of 2008. Prices for almost all stocks and commodities have been going through the roof. Having analysts on Wall Street proclaiming the recession is over. An economic recovery is here. But how could an economic recovery be here? If you six unemployment is still at a multi-decade high of 16.9%. The truth is, our economy is not recovering. Prices are only rising due to inflation. Our economy is currently experiencing a meltdown. The Federal Reserve has held interest rates at 0% for 17 months. Our financial system has been flooded with trillions of dollars in newly printed money. Those with access to the Fed's cheap money have done well in the past year. With Wall Street paying out record bonuses, this is come at the expense of the rest of America becoming dependent on unemployment checks and food stamps. There are now 39.4 million Americans on food stamps. Up 22.4% from one year ago. Food stamp usage has now increased for 14 consecutive months. In 2009, Americans received $2.1 trillion from the government in the form of transfer payments, which equal the $2.1 trillion they paid in taxes. In 2010, the government will pay out more benefits than it will receive in taxes. And the US budget deficit is projected to reach $1.6 trillion. Government spending has gotten so far out of control that if Americans were taxed 100% of their income, it wouldn't be enough to balance the budget. Nobody admits that this country is bankrupt, but they're still spending the worst. The problem is getting them more, they spend the big amount of debt gets. And we, this, this can't last. And I think the handwriting's on the wall. When Medicare was created in 1966, it cost $3 billion per year. And the Houseways and Means Committee estimated that the cost would rise to $12 billion per year in 1990. The actual cost of Medicare in 1990 was $107 billion. 792% more than projected. And today, it costs $408 billion annually. In 2003, at the beginning of the Iraq War, the White House estimated that the war would have a total cost of $50 to $60 billion. In reality, it has already cost $713 billion. Over 1,000% more than projected. The Congressional Budget Office is estimating that the recently passed healthcare bill will cost $940 billion over the next 10 years. If history is any indication, the actual cost of the healthcare bill over the next decade will be many trillion dollars, making it the final nail in the coffin of the U.S. economy. It is a bad bill all the way around and it will hasten the day of the bankruptcy of this country. And the American people will have to face that. So it would be a terrible way to bring this to a head. But indeed it will. It will put us in such financial shape. This country will have to decide, do we want to live in a free country? Or do we want to live under totalitarianism? Our economy is state of float until now due to the U.S. dollar status as the World Reserve currency and our ability to borrow an endless amount of money from China. For many years, the U.S. has been able to convince the Chinese to roll over the matured U.S. treasuries plus interest into large amounts of new ones. However, China has now reduced the U.S. treasuries holdings four months in a row, and the U.S. government is antagonizing China by calling them currency manipulators. This is battle going on between the U.S. and China, America calling them currency manipulators. That's a public consumption. Let's say that China re-adjust the U.S. The think that the Americans are going to pick up the export market because the value of their currency will not be yet anyway. As a matter of fact, if they do raise it, then they start buying more of everything because their money is worth more. They buy more gold. They buy more assets. China has manipulated their currency by picking it to the U.S. dollar, but it's their currency peg that is allowed Americans to maintain their phony standard of living for so long. If China listens to U.S. politicians and allows their currencies to strengthen, Americans will no longer be able to afford cheap imports from China. U.S. politicians want China's currency to strengthen because they believe it will decrease our trade deficit. Sure, our trade deficit would shrink from Americans importing less from China, but it won't have the desired effect of increasing U.S. exports. Years ago, the U.S. had companies like RCA and Zina that produce televisions. The color is too beautiful here, so red, her eyes are blue. The most trusted name in television. But today, there are no television manufacturers left. In 1910, 70% of U.S. women's clothing and 40% of U.S. men's clothing was produced in New York. Today, the textile industry in New York is non-existent and 34.5% of the clothing purchased in the U.S. is imported from China. Instead of investing to rebuild our manufacturing base, the U.S. government is now spending $1 trillion annually to maintain military bases in 140 countries around the world and fund perpetual wars in countries like Iraq. And then, the U.S. government is now getting a lot of money. No! No! War after war after war and draining as a trillion dollars a year, finance our empire being 140 countries and have 700 bases. This can't be sustained. That's what always brings empires down to their needs. It's a financial problem and we're in a financial mess. It should be clear to anyone that neither China nor India nor Russia have any interest at all that the U.S. exceeds enough Afghanistan. That should be very clear. And so, this war in Afghanistan will go on and on and on and eventually very well escalate. And when war breaks out, then the sky is usually the limit for commodity prices. Oil reached a high in July of 2008, $147 per barrel, despite diminishing demand from developed nations. Congress held hearings on why oil prices were rising, not realizing it was their deficit spending that was driving oil prices through the roof. When oil reached $147 per barrel, U.S. unemployment was only 10.5%. Most families were able to still afford gas by cutting back on discretionary spending. When oil rises to $147 per barrel, the next time around, we might have twice as many Americans who are unemployed. Families won't have any discretionary spending left to cut back on. The average American family might have to eat less and stop air conditioning and eating their home, just to afford gas for their car. While U.S. consumer spending as risen five months in a row, mainly due to rising prices, the U.S. savings rate has fallen to 3.1%. It's lowest since October of 2008. 43% of Americans now have less than $10,000 saved for retirement. What's going to happen when the U.S. government is inevitably forced to default on its social security obligations. Retirement will become a thing of the past. Americans getting ready to retire need to assume now that social security won't be there. Breme made up as in jail for a reason. He's in jail because Ponzi schemes don't work. They don't work when the private sector tries them and they don't work when the government tries them. We have a complete upcoming disaster in social security if we don't do something and do something about it soon. Retirement will soon be forced to re-enter the workforce, which could send the unemployment rate up to great depression levels. The only area of our economy that has been seen increasing employment is the government. The government recently hired 1.2 million temporary workers for the U.S. census. While most economists are hailing the U.S. census as being an economic boom, these census workers are adding no production to our economy. They are merely collecting a check that will allow them to compete against all of us for the purchasing of consumer goods. Including benefits, the average federal worker now earns twice as much as the average private sector worker. While incomes in the private sector are contracting, federal workers are receiving a 2% pay raise in 2010 after receiving a 3.9% pay raise in 2009. How can that be? I mean, they're supposed to be so servants. They're supposed to work for us. It wasn't the twilight zone. It wasn't time when the government workers actually earned less. They really were servants. Who's the servant now? The U.S. National Dead is now $12.8 trillion. However, the U.S. government is refusing to include the debts of Fannie Mae and Freddie Mac on its balance sheet. When these are now government-controlled entities, including the Fannie Freddie Dead of $6.3 trillion, our real national dead is $19.1 trillion. Once you include our $60 trillion in unfunded liabilities for social security, Medicare and Medicaid are total federal obligations have now reached $79 trillion, or more than five and a half times our GDP of $14.2 trillion. It will be impossible for our debts to ever be repaid without the U.S. printing the money and creating hyperinflation. America's greatest business success story of the past decade has been Apple, Inc., maker of the iPod, iPhone, and the new iPad. For fiscal year 2009, Apple recorded a $2.28 billion expense for federal income taxes. The U.S. would need to see the creation of 700 companies like Apple in the next year just to generate enough tax revenue to balance our projected 2010 budget deficit. This is impossible. The only way our economy can truly recover is for the government to dramatically slash spending across the board and eliminate unnecessary departments like the Department of Energy. The reason they started it was they were going to end our dependence on foreign oil. That was the goal. That's why we have, well, you know when we started it, we reported about 50% of our oil. Now we import 70% of our oil. It's been a colossal failure. They spent 30 billion dollars a year. A policy. Besides the Department of Energy, our country also needs to abolish the Department of Education. The cost to fund the U.S. Department of Education in 2009 was $63.5 billion. Up $37% from $46.3 billion spent in 2002. The average annual tuition for a private four year U.S. college in 2009 was $26,273. Up 41% from the average tuition in 2002 of $18,596. It's no coincidence that college tuition costs are rising almost in parallel with the Department of Education's Wasteful Spending. In China approximately 25 million students paying average of $400 to $2,200 per year for public and private college tuition. Not only is the cost to attend college in China less than one tenth the cost in the U.S. We bet it's pretty safe to say that the Chinese are becoming better educated than Americans because in China they don't have unemployment and food stamps to fall back on. The Chinese are motivated to become educated and work hard to add production to the economy because if they don't have a job they will starve. The average American has a mindset where they want to get paid and live well while being lazy as possible and doing as little work as possible. Why have a job in America if you can sit home and get paid for doing nothing? Let the Chinese produce goods for us to consume for free. Many American employers are beginning to realize not only is it cheaper to outsource work to China and India and not only are the workers that are motivated to do a better job but there are less liabilities when outsourcing work overseas. The recently passed patient production and affordable care act mandates that all businesses with 50 or more employees give new mothers a reasonable break time to breastfeed their babies or use a breast pump and to provide them a secluded place other than restrooms where to perform these maternal duties. Almost all employers in the U.S. would have the common sense and decency to do this on their own but now American businesses are being needlessly burdened in order to apply with another new unnecessary regulation. Employers in the U.S. are penalized when they create jobs in this country. Minimum wage laws alone have destroyed millions of entry-level jobs we could have had in the U.S. Chicken of the sea recently had to close down its plant in American Samoa and lay off 2,041 individuals who packed tuna because of the 50 cent increase in the American minimum wage. The simple act of eliminating the current $7.25 per hour minimum wage and implementing a new $7.25 per hour maximum wage for government employees would go a long way in helping rebalance America's unstable economy. Unfortunately, what's going on in Washington today is a charade. If the Republicans were in power they would have supported the recently passed healthcare bill. There is absolutely no difference between Republicans and Democrats. Neither of them are for limited government and protecting the Constitution. The very existence of the Federal Reserve and the printing of the Occurrency is unconstitutional. Yet there is still no widespread outrage about it. Americans are distracted by the daily debates in Washington and about whether to raise or lower taxes. But considering that federal tax receipts have remained relatively constant as a percentage of GDP over periods of many decades, proves the taxes are a mood issue. Americans are already taxed to the Hilt. Any additional taxes will bring in less tax revenues. There is no chance of our country ever paying off its national debt and unfunded liabilities through taxation. Americans will ultimately fill the economy for all of the government's wasteful spending through inflation. Inflation is currently the last thought on the average American's mind, but soon it will be their primary concern. Inflation merely post-pones problems. It diverts resources into sectors where they would otherwise go and were an undisturbed economy would not have allocated them. Eventually resources including labor need to go where the market wants them to go. There is no avoiding that. The U.S. is currently in a brief period of euphoria where the Federal Reserve's monetary inflation has created the appearance of an economic recovery without the devastating side effects of massive price inflation. Although it is possible for the stimulus induced melt-up to last for another year or two without hyperinflation, it will without a doubt end in an economic loss. The stimulus provided by inflation is due to the errors which it produces. That is where your stimulus comes from. The inflation is making possible the propping up of things that shouldn't be propped up and the starting of things that shouldn't be started. So these things have to be liquidated anyway and the correction will be all the worse. The Federal Reserve created the real estate bubble when it tried to keep the dot com bubble artificially inflated by lowering interest rates in 2003 down to 1%. The recession that we needed to have in 2003 to let the free market could rebalance the economy simply never occurred. In a last-titch effort to correct our economic imbalances caused by the Federal Reserve, the free market made a desperate attempt to enter the loss into a depression in late 2008. The Federal Reserve lowered interest rates to 0% the depression never occurred. They simply kick the can down the road. Heroin addicts need to go through withdrawal in order to get healthy. They can't simply shoot larger doses of heroin and stay high forever. Federal Reserve Chairman Ben Bernanke is just like a heroine addict. Only his drug is quantitative easing. Why do these bubbles keep happening? How come they never learn their lesson? Try talking to an addict. A heroine addict. Somebody hooked on nicotine. An alcoholic. Sit down with the addict and say, listen, stop shooting up. They're going to listen to you. They have no bounds. They have no loyalties. They have no boundaries. They're addicts. We're talking about here. So I make this very clear that these tightens of industry that President Obama calls them who make nothing other than profits. They make no steal. They don't build automobiles. They build nothing other than profits. They're junkies. They're addicts. They're money junkies. So all they are. They can't get enough. They can't get enough. Bowing down before Warren Buffett. For what? Because he makes a lot of money. Billionaire bonuses for what? Because they knew how to play the rig game. A bunch of guys cutting up $45 billion in bonuses. Bigger than the GDPs of many nations. They're junkies. So rather than letting the junkie go cold turkey, not out. His more money junkie. He have to go pay the debt. Go hey, look at those bank profits. Look how they've. Look how they've sore since we gave him more money heroin. So they're junkies. Yeah, the money junkies on one here. And you have the power junkies on the other. The power junkies are called politicians. If Bernanke doesn't raise interest rates immediately and raise them dramatically, we could see Dow 15,000 and then Dow 20,000 and Dow 50,000. But Dow 50,000 won't mean anything. If gold is 50,000 dollars per ounce, silver is 5,000 dollars per ounce and a loaf of bread costs 120 dollars. The last thing Americans need to be worried about today is the stock market crashing Normally if stocks were to see a nominal decline one last time, we will likely see Bernanke shoot up his largest ever dose of quantitative easing, which could turn the current melt up into hyperinflation. Eventually, we'll have much higher inflation rates because if deflation comes first, they're going to have even more stimulus packages and even more printing. And as you know, many leading economies, they call for additional stimulus, which icing is ludicrous, it's crazy to even suggest additional stimulus. But that is what the canesian believe is the right thing to do and that will bankrupt Western governments, not just in the US, but everywhere. Hyperinflation can only be prevented if we see the Federal Reserve raise interest rates to a level that is higher than the rate of inflation. The official US inflation rate based on year over year changes in the CPI is currently 2.31%. However, over the years, the government has made revisions to the way that CPI is calculated in an effort to understate inflation due to the fact that social security and other programs adjust to the CPI and they want to keep payment increases for these programs as low as possible. Through the addition of geometric waiting, the CPI today gives a lower waiting to goods that are rising in price and a higher waiting to goods that are falling in price. They justify this by saying that if the price of stake rises, Americans are more likely to eat something that is falling in price like hamburgers. The government also uses hedonics to understate inflation. The onics account for the increased pleasure of using goods. If an oven increase 25% in price, but is now 25% more energy efficient, or if a car increase 10% in price, but is now 10% safer, the CPI won't account for any price increases. We conservatively believe the real rate of inflation to be 3 to 4% higher than what is indicated by the CPI. Therefore, if we want to prevent hyperinflation, we need the Federal Reserve to raise the Federal Fund's rate immediately from 0% up to at least 5.31% to 6.31%. Even if the Fed fund rate goes to 5% and you have a debt particular time inflation at 8% to 10% in real terms interest rates will still be negative. So as far as I'm concerned, as far as the I can see, short term rates will stay negative in real terms, which is essentially support people with equities. And of course, extremely support people of precious and metals. Historically, one of the best performing periods for precious metals has been when the Federal Reserve, the Yens to raise artificially low interest rates. While investors initially expect rising interest rates to be bad for precious metals, they forget that even as the Fed begins to raise artificially low rate, interest rates will remain very inflationary until they reach a level that is higher than the real rate of inflation. During the 1970s, gold's bull run from $35.00 per ounce to a high of $850 per ounce for a gain of 2,329 per cent, came during a time of rising interest rates. If we go by gold's low of $250.95 per ounce in 2001, if gold makes the same percentage gain during its current secular bull market, gold can easily reach $6,200 per ounce before its bull run is over. The best way to gauge inflation is to simply look at the price of gold. Gold is the most stable asset the world has ever seen. In 1970, you could have bought a nice men suit for one ounce of gold or $35. Today, you can still buy a nice men suit for one ounce of gold, but $35 won't even buy you a nice t-shirt. Although the Federal Reserve doesn't admit it, they secretly watch the price of gold like a hawk. If the price of gold melts up too quickly, it's a sign that the dollar bubble is coming to an end. The silver market provides a window into what is happening in the gold market, because the silver market is miniscule compared to gold, silver prices are usually very volatile and swing both to the upside and downside by much larger percentages than gold. Based on recent events in the silver market, it appears as though the Federal Reserve bailouts of Wall Street may have been in part to artificially suppress precious metal prices. A March 14, 2008, the very day Bear Stearns failed, we saw silver hit a multi-decade high of nearly $21. Bear Stearns was on the verge of having a cover their short position, which could have easily sent it to $30, 40, even $50. Instead, we see the Federal Reserve orchestrated a bailout where JP Morgan acquires all of Bear Stearns assets with the backing of the Fed. Next thing we know, JP Morgan, a Quarthest Silver Short position of Bear Stearns, manipulate the price to be low $9. The CFTC's own reports of November 2009 show that just two banks held 43% of the commercial net short position in gold and 68% of the commercial net short position in silver. In gold, these two banks were short, 123,000 contracts, but long only $5,23 contracts. And in silver, they were short, 41,000 contracts had long only $1,400 contracts. How improbable is that these two banks attract most of the investors who want to sell short? JP Morgan is now short approximately 30,000 silver contracts, representing 150,000,000 ounces of silver. This is one of the largest concentrated short positions in the history of all commodities, representing 31% of all open comics silver contracts. Another seven commercial banks are short a total of 35,000 silver contracts, combining for a total commercial net short position in silver of 65,000 contracts. This means commercial banks are now short, 325,000 ounces of silver, that they will eventually have to cover by purchasing these 325,000 ounces of silver back in the open market. This could create the largest short squeeze in the history of all commodities. Since the beginning of World War II, the world has consumed more silver for industrial uses than it has produced from silver mining and recycling. Seven years ago, the world had 10 billion ounces of above-ground silver inventories. Today, it is estimated that there are only 1 billion ounces of silver inventories left. The silver is currently only 1.5% the price of gold, despite the fact that above-ground inventories of gold have become much more plentiful than silver. In the first quarter of 2010, the US Mint sold 9,000, 23,500 American silver eagles, the most since the Coin debuted in 1986, and up from 8,299,000 sold, the fourth quarter of 2009. All US silver mines combined are currently producing only 40 million ounces of silver annually. This means that the US needs to use almost all of its silver production just to keep up with the demand for American silver eagles coins. The fact that matters this, the gold-to-serve ratio of 64 would not be possible unless silver was being held artificially low through manipulation. I don't believe it is possible for the silver that JPMorganist short to be backed by physical silver. Most likely, JPMorganist naked shorting silver by selling people silver that doesn't physically exist. Are you concerned that the short will not be able to deliver if called upon? No, I'm not at all concerned. For one thing, it's been persistently that way for decades. Another thing is that there are any number of mechanisms allowing for cash settlement. Pressions, metals, or financial assets and like currencies and tea bills and tea bonds, they trade in the multiples of 100 times the underlying physical. When Mr. Christopher still realizes that investors around the world that are holding people silver contracts bleed that actually own the physical silver. There's going to come a time when these investors don't want cash settlement to use dollars, they don't want the physical silver itself, and this is going to result in a commas default. In June of 2007, Morgan Stanley agreed to pay 4.4 million to settle a class-action suit with brokerage clients who bought precious metals and paid storage fees. When in fact, it was alleged that Morgan Stanley wasn't physically storing their gold and silver at all. It's not out of the realm of possibility that the Morgan Stanley situation has evolved into an epidemic of bank selling silver they don't have. During the past couple of months, 18.5 million ounces of silver have been taken out of the silver ETF, SLV. With silver prices up nearly 20% during the same time period, it's unlikely that SLV investors have been selling. The withdrawals from SLV have taken place at the same time as large inflows have come into comics warehouses. This means we could be seeing dealers who are scrambling for physical silver to deliver to their wholesale customers. They are having to take their silver from SLV. It could be a sign that very little silver remains in unreported silver inventories. A major silver short squeeze could be imminent. Based on the government's own CPI index, SLV all time high in January of 1980, a $49.45 per ounce would equal $138 per ounce in today's dollars. If you account for how the government's CPI index under states inflation, silver's real inflation adjusted high in January of 1980 was $440 per ounce. If we see a comic's default and a short squeeze as investors around the world demand physical silver, the price of the physical silver could rise astronomically from its current level of $18 per ounce. Based on gold's current price of $1,150 per ounce and the historical gold silver ratio of 16 a silver price of about $72 per ounce could be realistic as soon as JP Morgan's manipulation comes to an end. In generalizing that all currencies will over time depreciate against precious metals, gold silver platinum and palladium. That in concert the purchasing power of paper money will go down. In NIA's top 10 predictions for 2010 article that was released on December 21st, NIA said the US dollar was overdue for a short term bounce from a technical standpoint because more people had become bearish on the dollar than ever before. NIA was right. The US dollar index has rallied in early 2010 from 78 up to a high of 82. This is because the US dollar index only compares the US dollar to other fiat currencies and it is heavily weighted against the euro. There is currently a major financial crisis in Greece, which has given speculators on Wall Street and excused the short the euro and go along the US dollar. Greece has a budget deficit that is 12.8% of their GDP and many people believe a collapse of Greece could take down the euro. The US dollar is now pessimistic about the euro. NIA believes those that are short the euro will soon have to reverse their trades, which could lead to the euro bouncing along with the US dollar crashing. Now I own the euro as you might know because you're long enough to widen the euro. There are so many shorts because I mean gigantic pessimists around the world about the euro. So I always try to be on the other side of the trade if it makes sense. And I figured something would come up to paper this crisis over. Now I don't think that's good. I don't think it's good for the euro, but I expected it to happen. I'm sure it will. The euro will have a rally and then we'll have to see. NIA believes all fiat currencies will eventually fail, but the US dollar is likely to win a race to the bottom with the euro. Despite all the problems in Greece, the country of Greece makes up just 3% of the total euro zone GDP. The state of California makes up 13.5% of the US GDP with an economy that is 5 times larger than Greece. And with every passing day, there is an increasing likelihood that the state of California will soon need to bail out by the federal government. It depends as much more flawed in the sense that we have gigantic debts and huge balance of trade, deficit, etc. The euro zone as a whole is much much less flawed. I would suspect that the US will have more problems first and then the euro, but who knows? In an attempt to add fuel to the US dollar rally, President Obama recently proposed a spending freeze which he promised will help cut down on future budget deficits. The spending freeze which will begin in 2011 includes defense, education, as well as programs like social security, Medicare and Medicaid. Obama's proposed spending freeze is absolutely meaningless. Let's say instead of freezing government spending where it is today, Obama actually cut 100% of all government spending down to zero, but kept social security, Medicare and Medicaid. Our country's current annual tax receipts are not enough to cover the spending. That's right. If the US government got rid of every single department, including the military, we would still have a budget deficit from social security, Medicare and Medicaid alone. With the baby boomers beginning to retire, the growth and entitlement spending will accelerate rapidly over the next few years. The average American peaks in spending at 46 years old and the last baby boomer will turn 46 in 2010. This means real US tax receipts will decline this decade at the same time as 1.5 to 2 million Americans apply for social security each year, compared to only 500,000 per year last decade. Even seniors who were smart enough to save a lot of money for retirement and attempt to live off the interest they collect and not to rely on government entitlements may soon find out that they can afford retirement no matter how much money they have. A senior citizen with an account at Bank of America, JP Morgan Chase, City Group, or Wells Fargo will now need to have $100 million on deposit just to earn $50,000 per year in retirement interest income. People look at interest rates from the perspective of the bar war. We all want low interest rates because it helps the bar war. What about the lender? What about the saver? These guys are getting destroyed in this relationship. You can't have an economy that doesn't reward savings because you have to have savings. That's where economic growth comes from. That's where capital investment comes from. And until we're able to raise interest rates, we can never have an economy. Most economists believe hyperinflation can't happen in the US because rising interest rates will put a stop to inflation. Although a record high federal funds rate in 1980 of 20% was able to prevent hyperinflation, our national debt back then was only $909 billion, or 33% of GDP. Today, our national debt is more than 14 times larger and about 91% of GDP. And that's not including our Fanny Freddie Dets and unfunded liabilities. Hyperinflation or a massive devaluation of the dollar is now unavoidable. We have passed the point of no return. If interest rates stay low and they continue stimulating the economy to try to pretend that things are okay. To try to pretend there's an actual recovery taking root, we will continue to hyperinflate our currency. Now, if they try to contract the currency and raise interest rates as we already know, our countrymen are dependent on easy money. They're dependent on credit. They're continuing to use their credit cards. They continue to borrow for houses, borrow for cars, borrow for anything we consume. Once they raise interest rates, those payments will simply become too much because we already know that we were exporting our great jobs overseas. So the people we have left in the United States will not be able to afford these higher payments. In March, US interest payments on our national debt were only $20.8 billion, due to the record low interest rates on our total marketable debt of only 2.5%. Only three years earlier, in March of 2007, the interest rate on our total marketable debt was 5%. If the Federal Reserve begins raising interest rates in 2010 by 2011, we could see our marketable debt interest rate rise back up to 5%. This would mean annual interest payments on our debt of over $500 billion or 23% of projected tax receipts. The White House budget doesn't project for interest payments on our national debt to break the 500 billion mark until fiscal year 2014. We find it shocking that the White House is projecting an interest rate on our debt in 2014 of only 4%. It will be impossible to hold interest rates at artificial low levels for so long. By 2014, we could be looking at interest rates of 10% or higher with interest payments on our national debt reaching $1.5 trillion or 43% of projected tax receipts. In February, Obama signed an executive order to create the National Commission on fiscal responsibility and reform, with admission to proposed recommendations designed to balance the budget excluding interest payments on the debt by 2015. By signing this order, Obama has created a new definition of a balanced budget as to not include interest payments. NIA believes this order serves as an admission that it will be impossible for the US to ever have a real balanced budget again. I mean, we miles away from this explosion of inflation. Well, the hope is that we can start growing again, start generating tax revenue again and grow our way out of this. We're going to grow our way out of a $14 trillion debt that grows a trillion a year. We grow our way out from the point of view of sustaining it for further, sustaining it for further. We'd no hope for our debt to ever be paid back or a budget to ever be balanced. The question becomes, what policy will the government implement to prepare for the coming crisis and what policies will be implemented once hyperinflation arrives? Hidden in the recently passed $17.5 billion hiring incentives to restore employment act is a provision known as foreign account tax compliance. This provision requires that foreign banks and financial institutions disclose the full details of American account holders to the IRS and to withhold 30% of all outgoing capital flows into those accounts if the IRS deems those account holders recalcitrant. We consider this to be the beginning of capital controls. It wouldn't surprise us if U.S. citizens are soon forced to invest their savings into U.S. treasuries. It also wouldn't surprise us if when food inflation begins to run out of control. The government implements price controls like symbobwe that lead to empty store shelves. It's no coincidence that the U.S. states with the lowest levels of unemployment are north to codat 4% followed by South Dakota and Nebraska at 4.8%. These states are farming states and no matter how bad things get in the U.S., Americans will need to eat. Our country needs to go back to its roots if we want to survive hyperinflation. During the Great Depression, 27% of those employed in the U.S. worked on farms. Today, less than 2% of U.S. workers work on farms and agriculture makes up less than 1% of our GDP. On October 30th, 2009, NIA released an article predicting that inflation would appear next in food in agriculture. Since then, wholesale food prices have risen 6 months in a row. wholesale food prices rose 2.4% during the month of March, the largest monthly increase in over 26 years. Some of the startling food prices on a year over year basis include fresh and dry vegetables up 56.1%. Fresh fruits and melons up 28.8%. Eggs for fresh use up 33.6%. Pork up 19.1%. Beef and veal up 10.7%. And dairy products up 9.7%. Right now, there are food rides going on in India. They keep talking about this great economic miracle that's going on there. I believe over half the people living on $2 a day in inflation is eating away that $2 very quickly. And you're going to start seeing the same thing happening around the world where the values of the currency decline You'll probably be enough food but there won't be enough money to buy it. And that's where you're going to start seeing the riots happen. More of a economic result in an environmental war. And it won't only be food riots, it'll be tax riots. It'll be riots against big governments clamping down on people. The second American revolution has begun. Many NIA members ask us about the US gold reserves of 8,133.5 tons. And if our gold reserves will be enough to help our country survive high-per-inflation. Although many people claim our gold reserves were audited in 2005, the auditor, KPMG, claims to have only audited the mince fiscal year 2005 financial statements. And they never saw any physical gold or even went to Fort Knox. The last real audit of the US gold reserves took place in 1954. We must protect the position of the American dollar as a pillar of monetary stability around the world. I have directed Secretary Conlate to suspend temporarily the convertibility of the dollar, Indigold or other reserve assets, accept in amounts and conditions determined to be in the interest of monetary stability and in the best interest of the United States. If the US defaulted on its gold obligations when it ended the gold standard in 1971, how do we know our gold reserves of 8,133.5 tons still exist? If they do, why aren't they audited on an annual basis like the assets of publicly traded companies? Assuming that our gold reserve still exist at Fort Knox, the value of our gold reserves based on the current price of gold is only around $300 billion. The US budget deficit for the month of February 2010 alone was $220.9 billion. The bottom line is, our gold reserves, if they still exist, are nothing compared to our debts and deficit spending. The US dollar would have to be devalued by 81% for our gold reserves to be worth enough to cover our projected budget deficit for fiscal year 2010 alone. The US dollar would have to be devalued 98% for our gold reserves to be worth enough to pay off our national debt. I mean, we could easily go back to a gold standard today, but they would have to re-value the gold price to something like a million dollars per ounce. Then you can implement the gold standard very easily. Instead of returning to a sound currency that is backed by gold, politicians in Washington today, believe that adding new regulations will solve our problems. They believe the free market failed, and the financial collapse of 2008 occurred because there weren't enough regulations. My question to them is, what framework it? The Federal Reserve sets interest rates for the entire nation, basically setting the payments, so the Federal Reserve is involved in price fixing. Because we know that if interest rates are low, payments are low, interest rates are high, payments are high. The truth is, we haven't had a real free market in the US for many decades. It is impossible to have a free market when the Federal Reserve artificially manipulates interest rates. If we had a free market, there would be no bailouts of so-called two big defail institutions. AIG would have defaulted on their credit default swap payments to firms like Goldman Sachs, Merrill Lynch and Deutsche Bank. Wall Street would have lost on their bets, and wouldn't have been able to pay out record bonuses. The fear of failure is a great motivator, and failure itself is the best regulator. If you want to regulate the banks, let them fail. Let them know that they can fail. If we would have let Goldman and AIG and others fail, I think our country realistically would already be through the worst of it. But by saving them, by devaluing our currency, by inflating the money supply to save these banks, all we've really done is save the variance institutions that have hurt this nation. Wall Street is able to spend their newly printed dollars before they circulate. By the time those dollars trickled down to the middle class, prices rise dramatically, and the middle class sees a rapid decline in their standard of living. Americans have not yet felt the devastating effects of the Wall Street bailouts, because it takes years for monetary inflation to result in price inflation. Moody's helped fuel the real estate bubble by rating CDOs as triple A that were backed by triple B or lower subprime mortgage bonds. Today, Moody's is fueling the government debt dollar bubble by rating US treasuries as triple A, even though they should be rated junk. They slap triple A ratings on piles of subprime mortgage bonds, and then under rivities, call them from these piles. And they were triple A ratings placed at hundreds of billions of dollars of bonds that didn't just decline in value, that went to zero. So the ratings in this world end up meaning nothing. The US dollars day of reckoning is almost here. If you compare GDP growth to our debt growth back in 1966, $1 worth of new debt would add 90 cents to our GDP. We are now at a point where $1 worth of new debt adds nothing to our GDP and actually subtracts from it. Do you know how angry the people are? They're losing their homes. They've lost their jobs. You have people getting out of college with nothing but worthless pieces of paper called diplomas. And $50,000 in debt. They can't get a job stocking shelves at Walma's or mowing lawns. And they're seeing the two big tithills to get bailed out. You think they're angry? When will our country wake up and realize that inflation does not create jobs and wealth? But instead leads to unconstrained government spending and the destruction of small businesses and family values, while punishing savers and fueling the rise of dangerous ideologies that eventually lead to the complete breakdown of society. We need to go back to having mom and pop stores where Americans buy high quality goods that were produced in the US instead of cheap goods that were produced in China. But we can only accomplish this if the government gets out of the way and stops transferring our wealth to Wall Street through inflation. Right around the corner for us is flashes. But you're sharp. Famous. Famous. Well, it's not the stupid time magazine. You're an organic pusher of the buys. Everything local in the Hudson Valley. Lines coming out the door in that place. You can't get in there. It's sad it is. High quality. So America could go back to the greatness that it wasn't goes back to quality. It goes back to Main Street, not Wall Street. When you stop shopping and buying crap at Walma's. What a pleasure going into a Walma's. And as all the aesthetics and comfort of a large self-storage unit. The only way our country will survive hyperinflation is through education. If we can get just 20% of Americans to become educated about our economy by watching this documentary, the rest of America will try to emulate us so that we can together strive to be better than China to prevent a total collapse of the US economic system. And then our trans-journaly right about the 20% solution. 20% of the people will buy quality at flyces. 20% of the people won't eat corporate crap. All of God. That's not Italian food. 20% of the people don't shove McDonald's down their throats. 20% of the people will live up to a higher standard. 20% of the people think for themselves. Move that 20% in a focused direction. We get an America Fog Greater than we could ever imagine. If you would like to be kept up to date on a weekly basis with facts and truth about the US economy and inflation, please sign up for the free NIA newsletter at inflation.us. NIA publishes weekly articles to its members about the economic topics that really matter. Topics that aren't discussed by the mainstream media. NIA will soon be releasing an update to its review of the major online sellers of Golden Silver bullion. As a member of NIA, you will also have the ability to participate in NIA answers and submit your questions about the US economy and inflation to NIA for a personal response with NIA's answer to your question. NIA also highly recommend signing up for the Trans Research Institute, TransJurnal at TransResearch.com. Thank you for watching the documentary Melta. We hope that you've learned something. Please share this documentary with your friends and family because we know that educating America, that is the second American Revolution. We know that our president, our Congress, for decades, they have ignored the constitution. They have ignored the mandate of the founding fathers. And right now, whether you like it or not, whether you're a construction worker or a farmer or a stock worker, it doesn't matter if you're an American, you need to know the Constitution is under attack. And you need to know that you are the Constitution's last line of defense. Thank you. Thank you.