Handbook for Prosperity

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How the Fed Thinks, Straight from Australia

Today we thank the good John Pugsley, Chairman of the Sovereign Society, for this very clear explanation of how our "money" gets messed up.

And how the government uses the very problems it creates to pass ever more laws to control our behavior (AKA take away our freedoms).

TradeDeficit = Freedom Deficit

Trade Deficit can be a difficult thing to grasp. Fortunately, Sovereign Society Chairman John Pugsley has a talent for making sense out of complicated economics...

"Consider what happens when individuals barter with each other," he said. "A baker trades a loaf of bread with the farmer for a dozen eggs. A tailor trades a suit of clothes for a cow. A migrant worker trades an afternoon's labor for a meal and a place to sleep. Is a ‘trade deficit' possible in any of these cases? Could there be a deficit if, say, a shirt maker in China trades 1,000 shirts for 100 barrels of oil from, say, some producer in Texas?"

"Obviously, no. A gives something to B in exchange for something else and both get what they bargained for. No deficit is possible."

"So how is it that when the farmer, or the migrant worker, or the Chinese shirt maker trade their goods and services for money, that suddenly the deficit problem pops up?"

"Because when individuals trade real goods, the exchange is complete. But when one half of an exchange is for money, the government enters the picture. Individuals create real goods and services with labor and capital, while governments create the money by "fiat" (i.e., by law), simply pushing computer keys and running printing presses. The newly created money, which cost next to zero to print, buys up real goods and services. And as the money percolates through the economy, it leaves a swath of destructive imbalances, including such things as inflation and trade deficits. Governments then step in with more laws and restrictions that purport to solve the economic problems that their fiat money policies spawned."

"Money creation is a form of theft (and, as my friend Richard Maybury once said, theft is just a nice word for taxation), albeit so subtle that the public never seems to catch on. In a world where individuals and not governments were sovereign, the marketplace couldn't have trade deficits or inflation, as the marketplace has feedback mechanisms to deal with anyone who creates irredeemable money. But when governments usurp the freedom of individuals by passing laws defining legal money as the money printed by the government, all manner of economic evils follow."

"What can a sovereign individual do? Forget futile efforts to influence the politicians, and assume everything they do to ‘solve' the trade deficit will reduce your freedoms even more. Go to the root of the problem, which is fiat money. Historically, gold and silver have been the free-market's choice for trade, and the ultimate refuge from fiat monies. You can regain some sovereignty in the monetary arena by holding and dealing in real money whenever possible. Gold and silver, whether held as assets to defend against depreciating currencies, or as mechanisms for trade through free-market exchanges like GoldMoney.com, or LibertyDollar.org, are real money. Hold and use real, free-market money whenever you can."

Rob Wilson

www.redfridgemedia.com

www.handbookforprosperity.synthasite.com

www.robsshots.smugmug.com

Just A Perusal Of My Silver Bullet Solution and My Free Offer Is Available!!

Jan 6,2009

End the Recession Now: A “Silver Bullet” Solution

Here’s an idea to end the recession for our historic new prez, Mr. Obama. If he would implement this idea, it would fix our economy

in 24 hours flat.

You read right.

This “Silver Bullet Solution” promises to bring back the boom times with unprecedented prosperity. At the same time, Obama

would become known as the greatest president ever.

The biggest challenge he faces is the economy.

The housing crisis keeps worsening. Car companies are only keeping their doors open with government loans. Unemployment is

fast approaching double-digits as jobs evaporate daily.

State and local governments are starting to run out of money, heading for the economic dumpster as tax revenues shrink up like a

dried prune.

The Fed and the Treasury are doing everything they can to pump money into the system to keep it “solvent”. But the money gets

“stuck” at the banks and the companies they are bailing out. The total of this instantly-created bailout or rescue or whatever-

you-call-it-money is now north of $8 trillion.

That means that the people who really need bailout money - people like you and me - can’t get any!

That’s why a silver bullet is called for. A dramatic shot into the economy that fixes things. That puts money in our pockets, sucks

cars off of show room floors, and gets those darn housing prices back up where they belong. How long can we sit still and let those

inventories of big screen TVs back-up, anyway?

Enough is enough. We need to get money into the average person’s pocket, and we need it there now. After all, if we had more

money in our pockets, we could buy more stuff, and people would have to go back to work to sell us more stuff. Isn’t that how things

work?

And Obama is just the guy to do it. He’s all about change, right?

Here’s the Silver Bullet Solution. Are you ready for this? It is so simple, you’ll wonder why no one thought of it before. It’s a

piece of cake.

When Obama takes his oath of office, he can issue an Executive Order during his acceptance speech to make it happen.

You know what Executive Orders are, right? When you don’t want to follow the constitution to get things done by law, as President

you can just order it. You issue an Executive Order, and that’s it!! Just like Captain Picard on The Enterprise, “Make it so.”

Any president can do this. It just so happens that Obama is the right man in the right place at the right time. Imagine that.

Who else thinks of these things besides me? Well, leave it to the common man to come up with the Right Stuff. Someone has to

do it, and if it happens to be me, well, so be it.

Okay, the Silver Bullet Solution.

One simple, little thingy that will right the ship.

It will do more than just Jump start the economy., it will kick it into high gear. Americans will be able to go on a spending spree

like the world has never seen before. Tax coffers will fill up and overflow (which could be the only flaw in this idea, come to think of

it). Jobs will be created so fast, there’ll be a labor shortage. Paychecks will increase as companies bid against a shortage of

workers.

It’s gonna be great. Really, really great.

Ready? The Silver Bullet Solution.

Here it is.

All Obama has to do is issue an Executive Order that forgives (instantly, as in upon signing the darn thing) all mortgage debt, all

credit card debt, and all car loan debt.

Forgive all of it. Wipe the slate clean!!

It’s the trifecta of the century and it’s only 2009.

How’s that for instant action AND instant fame? Go Obama, go!

Instantly, everyone who is making a mortgage payment is going to have a lot more money in their pocket every month. So is

everyone making credit card payments. And those car loans - ooooo la la, baby, I got cash in my pocket and it’s Saturday night.

Let’s par-tee!!

So now every one with a mortgage instantly owns their home. With their new-found cash flow, and no debt (we wiped out the credit

card debt, too, remember), and an outstanding credit rating, these same people can now spend like no tomorrow. (They now have

outstanding credit ratings because they don’t have any debt!)

They can run out and buy new cars. A second home. Remodel the kitchen. Put in a pool. Install solar energy (for those

environmentally sensitive people, gotta think of everyone here.) Take an amazing vacation.

This could work so well we could have more homes owned than there are people in the U.S.A.

Heck, knowing how Americans think, we could probably turn this whole thing around in, oh, 48 hours.

For you doubting Thomas’ out there, let’s do the math. At the end of 2008, here’s where we stood:

Total credit card debt in the U.S. = $2.583 trillion dollars

Mortgages total = $10.54 trillion

Car loans = $864 billion

Total buying/spending power: $13.984 trillion

So we go from all this debt, to having $13.984 trillion in our pockets to spend.

Let’s just round it up a bit and make it an even $14 trillion. I don’t know what planet you are from, but in the U.S.A., that is a LOT

of spending power.

Talk about a Silver Bullet Solution!!!

Now you might ask, what about the banks and investors and credit card companies who are owed that debt?

This is not hard, people. Just have the Fed or the Treasury cut them a check. Better still, just make a deposit in each company’s

bank account with a computer entry.

Isn’t that how they got all that bailout money? You remember, the $8 trillion+ that is being used to shore up Wall Street and the

banks and AIG and the car companies.

So just do it again. Only this time, just reimburse them for all the debt that was just wiped out by Executive Order. (At the risk of

being presumptuous, bless you, Obama!)

It’s simple to do. A few clicks on a keyboard, and bam - money into the accounts for any organization holding a mortgage. A few

more clicks and money into the accounts for any organization holding credit card debt. And of course, hit that keyboard again for

any company holding car loan debt.

I told you this was simple. All that debt gone. All that cash flow to buy things. Good credit to finance things. Clean credit cards

to charge with.

It’s a nirvana solution for what ails America.

Here’s the really big - and I do mean BIG - payoff. Now all those mortgage companies, banks, car finance companies and credit

card companies are loaded with cash - to lend to people to buy more things!

All those fat-cat execs will get those big bonuses again, just like they deserve. The world will be right again, finally.

Now I ask you this: what recession, no matter how big, can withstand an onslaught of cash, spending and borrowing like that. I’ll

tell you - it can’t. We’ll simply overwhelm all those recession-type thingys.

That’s why I decided to call it the Silver Bullet Solution. A one-shot fix from the New Decider.

America back on its feet. Optimism overflowing.

All it takes is that Executive Order. Some marching orders given to the Treasury and the Fed. A few strokes on some keyboards.

And about 48 hours.

The rest is easy.

Happy days are here again!

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