Financial Sense: The 4Rs: Realty Reality Recommended Reading 03/08/2005

GLOBAL REAL ESTATE MARKETS FORUM
4Rs: Realty Reality Recommended Reading
with Editorial Comment

REALTY REALITY FSO ARCHIVES
March 8, 2005

See: Tsunami in the Bond Market by Dr. Antal E. Fekete
See: Housing Mania Will End in Tears by Bill Fleckenstein
See: Greenspan has turned Fed job into a pulpit by Tom Abate
See: U.S. Already Has a Flat Tax, and It Isn't Pretty by John Wasik
See: Lex: Buffett Trade Deficit
See: Risky Real Estate Moves by Sarah Max
See: "Homeland Security" -- For What and Whom? by Dr. Edwin Vieiera, Jr.

Ole Bear, Editor
Commentary

Whad U Mean Tsunami? Housing Bubble? Huh?

I always like to read the pen of Dr. Fekete. This essay is full of 30-06 and 30-30 caliber rifle shells for those of you who like deer hunting. We suspect the deer in the headlights is Mr. Greenspan, telling Congress one thing while he plots with the Fed Boys in the secretive FOMC meetings trying to figger out how to abscond their way out of the next obfuscation, all the while knowing exactly how they are going to keep the Federal Reserve Note Con Game going with the Asian Central Banks, the Bank of Japan, so that interest rates for houses remain low -- keeping the real estate con game inflated.

Fleckenstein takes off on a rip roaring tirade on the real estate bubble that brings tears to all our eyes. Fleck has some good stuff to say, and in usual fashion, makes us all laugh about this insanity. There are some good extra links too, as well, as corollary to his tirade.

We also added some extra links on Greenspan, other tirades, the flat tax, and the housing scam... that some would call a bubble.

For those of you who don't know Dr. Edwin Vieira, Jr., he is one of the foremost authorities on money systems and the Federal Reserve and has four degrees from Harvard. We generally link to his essay work quite a bit on the FED and money systems. I have autographed copies of both Crashmaker and Pieces of Eight. We identified in Becraft's Memorandum of Law: The Money Issue the process of the Federal Reserve's war on its own kind in the process of total banking consolidation in the USA:

The scientific art of creating booms or depressions for our economy has been fully developed by the "Fed." This organization can now totally control the U.S. economy, and this ability allows it to totally control any particular industry. The past few years have clearly shown the ability of the "Fed" to attack any industry, be it the automotive, oil, or transportation, and bring that industry into its control. The current industry under concerted attack by the creditor creators is agriculture.

Of particular significance presently is the war of the "Fed" against its own kind, private commercial banks. The Fed desires to bring all banks directly under its control and to create out of some 14,000 independent banks a few large industry giants. The fewer the number of banks, the greater the control by the "Fed." A deposit made into a bank in heartland America can quickly result in credit extended to Red China.

There are many other detrimental effects to be noted as a result of the banishment of specie as the only component of our monetary system and its replacement by fiat currency, but such would serve no purpose here. It only needs to be noted that specie coin is "free man's" money; it is unpolitical and a circulating currency of specie coin cannot result in any governmentally imposed favoritism or benefit to debtors at the expense of creditors. Fiat currency, however, is political money and can be used to favor one group against another or to destroy any group, including an independent sovereign state. -- Period IV: Fiat Law Equals Fiat Currency: 1968 to Present

Dr. Vieira talks about the "Establishment's fears of a monetary and banking crises of serious proportions" and the relationship of the Constitution as the Rule of Law in his two paragraphs:

Make no mistake about it: To maintain its own economic and political positions, the Establishment will sacrifice the economic welfare and the constitutional rights of everyone else. And to succeed it will be compelled to crack down: first, on people's resistance to its propaganda, agitation, disinformation, and other techniques of psycho-political manipulation; then on refractory dissent; then on rebellion at the polls; then on mass refusals to obey its oppressive "statutes", "regulations", and "judicial decisions" and, at length, on revolt against every aspect of its misrule. The Establishment is building a domestic police state today for the purpose of deterring, cowing, and if necessary smashing this opposition tomorrow. So, even if the supposed threat from Islamic terrorists were to disappear today, the Department of Homeland Security would continue to grow tomorrow. Also, the breakneck speed at which the Department of Homeland Security is being constructed should warn America how much the Establishment fears that monetary and banking crises of serious proportions cannot be long delayed.

The question is what Americans intend to do about it, before they can no longer do anything about it. Simply opposing the Department of Homeland Security or the Patriot Act (and subsequent legislation of that ilk) will not be enough. For these are only effects, not causes. The danger will continue to exist as long as this country's Ponzified monetary and banking systems remain in place, increasingly shaky and prone to collapse. Americans need to begin working now to replace these systems with sound money and honest banking.

In our view, nothing is more shaky and prone to collapse than the GSEs, and no greater monetary and banking crises of serious proportions exists than inflated real estate prices burdened by such a Titanic debt load -- having the propensity to crush the consumer as the US Economy [and the house of cards banking system]. If you look in your local newspapers at the foreclosures which cut through many price ranges and socio-economic levels in your micro real estate market, you will find the lull before the Tsunami. Nope, there ain't no place hide.

Ole Bear, Editor
Columbia, Missouri

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