Archive for May, 2006

The Dow Jones in Gold Dollars

My week was topped off by a message from Franklin Sanders of The Moneychangers, another great way maker. He points out that “From an August ‘99 top at G$925.42 (44.77 troy ounces) the Dow (Jones Index) in Gold Dollars has fallen to a recent low at G$330.29 (15.98 oz), down 63%. The Dow in Silver Ounces has fallen from 2,566.05 in 6/01 to a recent low of 774.67, losing 70% (seventy percent).”

Graph of falling dollar relative to goldWhat that means is that if you have kept your savings invested in dollar denominated securities of large US corporations and banks -– aka the Tapeworm — since August 1999, the value of these assets — on average — has been more than cut in half. Working out your salvation with diligence includes finding ways of successfully navigating a falling dollar.

A True Thing

There are times when the walls start to close in on me. When that happens, I reach out for a true thing. Something that pushes the walls back out and that makes a way in my spirit.

This week I read two remarkable books by two remarkable people. True is not a word I use a lot. These two books are true. Their authors are way makers.

Deep Survival

The first was Deep Survival: Who Lives, Who Dies, and Why, by Laurence Gonzales (W.W. Norton & Company @2006). Click here to order from FTW.

Gonzales is a contributing editor for National Geographic who has spent a lifetime personally pursuing and studying wilderness and survival experiences – skydiving, aeronautics, rock climbing, wilderness training and motorcycle racing among them. Inspired by his father’s survival of a 27,000 feet fall after his airplane was shot down during WWII, Gonzales asks the question, ‘why do some people live and some die?’ What are the characteristics and behavior of the people who endure under conditions of extraordinary stress?

Quite remarkably, Gonzales takes us all the way into the heart of the matter. He takes our minds there, he takes our heart there and he takes our spirits there. This is a book that resonates through and through. Though my wilderness survival experience was an urban one, everything Gonzales says about what it takes to make it is true – urban, suburban, rural or wilderness.

Many Americans have been living in a day-to-day process in which – as our political options and powers diminish – our consumer options and powers increase, albeit these powers are probably temporary as well. We have become remarkably spoiled and “baby-fied.” At the same time, the quality of our food, water and air are diminishing in a manner that results in much less physical strength and stamina. As we weaken, we are consuming extraordinary amounts of popular culture that is designed to denigrate our intellect and humanity. We have become a people without the characteristics of those who survive the stress we now face. This was very much weighing on my spirit when I turned to Deep Survival looking for some answers. Our lack of spiritual, mental and physical preparedness is a matter of great concern for me – and one of the reasons why I believe it is so important to “come clean.” Deep Survival helped me come to terms with those concerns – reminding me once again of the importance of focusing on what I can do.

If you read Deep Survival, read it slowly and carefully. Take the time to feel it. Take the time to contemplate the application of a lifetime of Gonzales’ learning in your life. It is rare that a book can communicate intelligence that can save your life. Deep Survival has that potential. The last words of the Buddha were said to be, “Go work out your own salvation with diligence.” Gonzales puts meat on that bone.

1996

The second book was 1996, by Gloria Naylor (Third World Press @2005).

Naylor is a real favorite of mine. Her previous book The Women of Brewster Place (Penguin @1983) is on my list of best lifetime fiction. So when a member of the Solari Action Network forwarded me a message that Naylor had been interviewed about her new book describing her experience as a target of a covert operation similar to the one I had experienced, I was amazed (click here for interview). When the book arrived yesterday, I stopped everything and read it.

Naylor’s book is what she describes as a “conflation” — a combination of fiction genre and non-fiction genre. It is a brilliant way of dealing with the subject. Indeed, it is a practical, economic way of helping readers understand these situations from the various points of view of those involved. It makes clear some of the dark turns our culture has taken with new technology.

Naylor does an outstanding job of describing some of the types of people, tools and operations involved in domestic covert operations -– including the pleasure that some enjoy from terrorizing and destroying peoples lives. It’s a new form of hunting, a 21st century sport.

To this day, why this happened to Naylor remains a mystery. She does not explore the events at that time that might cause the National Security infrastructure to want to keep a leading Afro-American writer preoccupied.

For example, there is no mention of the extraordinary efforts to discredit Gary Webb and his 1996 story Dark Alliance from entering the mainstream consciousness (click here for details). Nor is there mention of the history of the development of non-lethal weapons by the military and the efforts to integrate that technology into domestic enforcement in the 1990s. My theory is that many situations at this time developed from the need for prototyping the application of this technology and the desire of the government contractors and vendors involved to generate business.

There is no mention of the extraordinary number of middle and upper middle class people who were targeted and assasinated during that period. I remember sitting in a cafe at DuPont Circle in Washington with our in house counsel at that time. Sam Smith at the Progressive Review, a block away, had been compiling lists of all the people around the Clinton’s that had been murdered under suspicious circumstances and he had broken a detailed story about the professional hit of a White House intern at Starbucks, not far away. We talked about the young female INS attorney who had disappeared, last seen in the DuPont Circle area. We talked about the subpoenas the cafe bookstore had recieved — for a time the waiters and waitresses wore yellow T shirts that said “I’ve been subpoened.” And how our company, Hamilton Securities, which had been right across the street had been invaded and shut down. My house three blocks away had been the site of ongoing harrassement, break in and surviellance. (See The Swat List: Audits, Investigations, Inquiries, Leaks Conflicts of Interest, Harrassment and Surveillance and Anatomy of a Swat from a Lawyer’s Perspective.) This tiny neighborhood was exploding with covert operations and deaths — yet the media was silent other than Sam and a brave few.

You can not help but wonder what would happen if all the people who had experience with or investigated these happenings came together to put their different pieces of the jigsaw puzzle in place. Naylor does not discuss this, her book remains true to the scope that is her greatness. She is the master of the intimate within the day to day life of a person, a family, a neighborhood. She leaves the world of global politics, black budget operations and economic warfare for another forum.

The tactics that are used to target one person have extraordinary parallel to the tactics that are used to track and manipulate whole populations. Therefore, Naylor’s successes at surviving her targeting have invaluable lessons for us all. She takes the lessons of Deep Survival and moves them into a new type of wilderness — where the predators are human, the enemy is intimate and the tactics include the most invisible and invasive — into your computer, your phone, your airwaves and your mind.

Naylor has worked out her salvation with diligence and written a book that tells the tale. It is an act of enormous courage. Beautifully written, it is a work of art. 1996 is a true thing — one that will also save lives.

The Great “Incompetency” Heist

I never cease to be amazed at the extent to which successful policies are portrayed as failed policies, and the transfer of public resources to private parties are spun as the result of government and bureaucratic “incompetence.”

Recent financial headlines are full of news of record profits by oil companies and strong stock performance, proof positive that the invasion of Iraq has been successful.

Oil Profits Fuel Envy, Discord
By Brian Love and Jan Strupczewski, Yahoo News, May 5, 2006

Exxon Mobil Stock Performance — 2006 Proxy
Source: exxonmobil.com 2006 Proxy

FIVE-YEAR CUMULATIVE TOTAL RETURNS
Value of $100 Invested at Year-End 2000

* Industry Group comprises: BP, Chevron, and Royal Dutch Shell

Those who are saying that the Bush Administration has failed in Iraq or that we are not winning the war apparently do not understand that a policy must be judged according to its goals. If oil company profit and resulting stock market performance left any doubt, the fact that the cost of the war is expected to top $1 trillion should make the case.

Cost of Iraq war could surpass $1 trillion
By Martin Wolk, MSNBC, March 17, 2006

A successful war policy is one that pours money into the private pockets that promoted it. So to whom is the $1 trillion going? It appears that the Pentagon may not have to say because they are still allowed to hide behind the ruse that they and the most powerful corporate contractors and banks in the world who run their systems are not capable of maintaining a basic accounting system.

A new report says the Pentagon’s finances are in disarray
By Drew Brown, Knight Ridder, May 11, 2006 (also archived here)

When Kelly O’Meara was writing about the $3.3 trillion of undocumentable adjustments at DOD, the head of the General Accounting Office committed to publish the names of the contractors responsible for the Pentagon’s financial, accounting and payment systems. As far as I know, this never happened. For descriptions of reasons given by the federal government as to why it can not balance its books, see:

Treasury Checks and Unbalances
By Kelly O’Meara, Insight Magazine, April 14, 2004

See other related stories on solari.com’s:
Missing Money — Articles and Documents

Not surprisingly, defense contractor profits and stock market performance are also on the rise.

Lockheed Martin Stock Performance — 2006 Proxy
Source: lockheedmartin.com 2006 Proxy (Page 26)

Comparison of Cum. Total Return Thru 2005
Lockheed Martin, S&P 500 Index and
S&P Aerospace & Defense Index

*The S&P Aeospace & Defense Index comprises:
Boeing, General Dynamics, Goodrich, Honeywell International,
L3 Communications, Lockheed Martin, Northrop Grumman,
Raytheon, Rockwell Collins, and United Technologies

Halliburton Stock Performance — 2006 Proxy
Source: halliburton.com 2006 Proxy (Page 21)

It is worth asking the question: “What is the relationship between the corporate contractors billing government agencies and the corporate contractors and depositories running those agency information, accounting and payment systems?”

One thing is clear - the combined policies of war in Iraq and a ten year refusal to maintain basic books and records have created a grand slam home run success for the Tapeworm.

The military is not alone in engineering public failure to achieve private profits for political success. The other half of the central banking-warfare coin is engineering similar achievements. As the price of gold reached record dollar highs last week, the Bank of England came under fire for having sold half of its gold reserves between 1999 and 2002 — a time during which the gold price was supressed by central bank market manipulations. Hence, these sales incurred an opportunity loss of as much as $6.5 billion at 2006 prices.

Chart - Long-Term Price of Gold in US$
The Privateer

Chancellor’s losses hit $6.6bn as gold touches record high
Labour’s sale of half the Bank of England’s gold reserves to invest in euro and yen was ‘impatient’ and ‘badly timed’
By Jason Nissé, The Independent, May 14, 2006

Perhaps the Bank of England’s gold sales were not ‘badly timed.’ Perhaps they were beautifully timed. Some private parties made off with a $6.5 billion windfall. Wouldn’t you love to know who was able to buy so much gold at supressed prices?

If someone were to ask for those transaction records, they might be hard to find. Unanswered question: Could this explain why some dealers have been leaving the business?

Rothschilds Quit Gold Market & London Fix
Tax Free Gold, London, 2004 (also archived here)

It is invaluable in understanding the world around us to assume that government is perfectly capable of being competent when it is politically desirable to the private parties that finance and operate government. Therefore, governmental and central banking policies which continue are policies which are successful in terms of their real goals.

Hence, it should come as no suprise that the “strong dollar” policy is succeeding in destorying the value of the dollar:

Central bankers are backing Plaza-lite
On Friday the dollar plunged to a 12-month low
By Liam Halligan, Telegraph.co.uk 14/05/2006

U.S., Seeking Smaller Deficit, Signals Comfort With Dollar Drop
US retreats from strong dollar policy
By Kevin Carmichael, Bloomberg.com, May 15, 2006

Foreign Investors Slow Purchases of U.S. Securities
Foreign governments sell U.S. bonds as Caribbean ‘banks’ buy
By Alison Fitzgerald, Bloomberg.com, May 15, 2006

And that the power of the IMF to dictate policies to Congress is rising:

IMF Acts to Avoid Market Meltdown
By Heather Stewart, The Observer, May 14, 2006

Failed policies and government incompetence are “spin.” Don’t fall for them. We are watching an epic transfer of wealth and a coup d’etat — a fundamental reordering of global and national institutions that has been intentionally planned and executed.


We are watching an
epic transfer of wealth
and a coup d’etat


The big financial question hanging out there is whether or not the events in and around Iran in the coming months will resolve themselves in terms of a bounce in the dollar and a significant drop in the gold price, or will the rise of precious metals and the fall of the dollar continue. There is no way to know. I believe it is possible to spend full time trying to understand events and still not have the reliable information we need to make an educated guess.

My advice is to be prepared to live with significant volatility either way and stay focused on building financially intimate wealth according to long term fundamentals.Ultimately we all need to be good at predator evasion. Other than knowing when to duck, it is wise not to spend too much time trying to figure out what the Tapeworm is up to. Tracking the destruction of wealth ultimately detracts where our focus should be — on withdrawing our resources from the Tapeworm’s control and investing them in financially intimate ways in a manner that shifts the game entirely.

Need more on how to do this?

See our Coming Clean web resources page, and

Our audio seminar series (order individually or as a set)

Special Thanks to the Gold Anit-Trust Action Committee’s Treasurer/Secretary Chris Powell for excellent filtering of the financial news these past weeks. To sign up for GATA’s updates, see www.gata.org

___________________

Afterward: This blog post was later published by Scoop Media in New Zealand — see The Great “Incompetency” Heist

Right as Rain - New York’s Local Solutions Conference

I was back on the road last week — driving from Tennessee to New York to speak at Local Solutions to the Energy Dilemma, a wonderful conference hosted by: Peak Oil NYC, Local Energy Solutions, and Five Borough Institute. Very appropriately, my gas purchases topped $50 each time I stopped to fill up the tank along the way. In farming country that’s big news.

See my first Pick of the Week for this blog:
Texans Going To Pawn Shops To Get Extra Gas $$
From CBS 11 News, April 20, 2006 (also archived here)

The conference was quite a gathering, with terrific speakers, vendors, a smart and engaging audience and wonderful sponsors.

On Thursday nite I listened to Matt Savinar deliver an excellent speech. He pointed out if you wanted to do something positive, you should start a business and create a few jobs. What people need are jobs. Excellent point. Click here for his website lifeaftertheoilcrash.net.
Then we headed down to Colors, the new restaurant created and owned by former employees of Windows Restaurant which was previously based at the World at the World Trade Center. The owners have brought together their favorite recipes from over 24 cultures/countries and adapted them for a New York audience. The food was terrific and so was the service.

I spoke on Friday. You can find my slides on our website, just click here. Afterwards, folks gathered outside in the hall to ask questions. This was a very thoughtful, intelligent group of people. Many, many questions on the “real deal.” My good ally Carolyn Baker joined us; we’ve known each other for years but actually never met. Ditto Dale Allen Pfeiffer.

That afternoon, Megan Quinn showed the documentary produced by The Community Solution about the Cuban experience of switching to permaculture and organic farming when their fossil fuel supply dropped when the Soviet Union came apart. It’s called The Power of Community - How Cuba Survived Peak Oil. I strongly recommend it. Anais Starr in Kalispell, Montana will be showing it on May 21 at the Center for Community & Spiritual Development.

On Saturday I gave a two hour workshop that kept growing in number of attendees as it went on. I was delighted to find that people are very interested in understanding how the “Tapeworm” is draining us — including through our finances and the finances around us as well as dirty tricks — and what we can do about it.

Another Pick of the Week:
The Predator State
By James K. Galbraith, Mother Jones Magazine, May/June 2006 Issue (also archived with annotation here).

I found myself recommending Jon Rappoport’s latest audio seminar Mind Control, Mind Freedom and our new story, Dillon, Read & Co. Inc. and the Aristocracy of Prison Profits and website links as a great introduction to the inner workings of the Tapeworm.

In response to many of the questions on learning about the how the money works in our places where we live and work, the Solari team has posted some pointers along with my lecture slides. Many more questions centered around individual investment strategy and risk. As gold and silver were hitting all time highs, learning more about the falling dollar, what was really happening and how to protect ourselves and our families from inflation was a unifying theme. After much rich discussion, I recommended that everyone listen to my audio seminar Solari Portfolio Strategy - The Power of Financial Intimacy, which is a comprehensive step by step primer covering all this in depth.

More Picks of the Week:
Dollar Starts the Big Slide Against Major Currencies,
By David Smith, Economics Editor, The Sunday Times UK, Sunday 30 April 2006 (also archived here)

Prem Dixit, a very talented activist, attended. She is developing a participatory budgeting effort in New York. I believe that participatory budgeting is one of the most important success stories to emerge globally through the World Social Forum. Their slogan “another world is possible” has meaning when and where citizens get down to the business of mastering the cash and credit flows of their place for an integrated “eco-system” look at how to optimize the resources in their place. Participatory budgeting is a powerful step towards citizen responsibility to ensure that resources are well used. A successful participatory budgeting process in New York City could produce dramatic improvement in the benefits New Yorkers enjoy from governmental investment as a result of citizen understanding and input in the process of determining expenditures, credit use and the rules and regulations that guide them. The opportunity is quite significant not only in terms of better use of governmental resources, but in attracting private resources into infrastructure, housing, education, cultural institutions and small business.

See: The Experience of the Participative Budget in Porto Alegre Brazil, MOST Clearing House Best Practices Database

As I left the conference, Phil and I discussed the possibility of me coming back to do more speeches and workshops. I hope it happens. New York has so much talent. And this is a great group, great audience. Lots of good stuff happening here. And given the density, New York City is suprisingly energy efficient. The New Yorker just ran a great article about this.

After the workshop, I headed over to Greenwich Village to have lunch with first rate investigative reporter Lucy Komisar who writes about offshore havens and global money laundering and financial fraud. She was off the Athens for a global meeting of the Tax Justice Network.
I have their latest piece from Lucy and am learning more about this aspect of financial fraud.

I left New York on Saturday, headed for other stops along the East Coast and New England. Something very positive is happening. Something integrating. While the notion that the titanic is sinking can be frightening, the opportunities to build arks are looking more and more energizing. The company we keep in this flotilla of tiny arks gets better, richer, and more diverse every day. It’s like the first days of spring in Hickory Valley. The plants and trees are just starting to come alive and as the first spring shower waters them, life in all its forms bursts forth. The more we come clean, the more things feel “right as rain.”