'Financial Repression' Robbing the Middle Class, Say Experts
'Invisible Tax' Siphons American Savings and Investments
3.22.12--Government taxes us year-round, often secretly, and not just on April 15.
When the interest rate paid on savings accounts and bonds is fixed below the rate of inflation, our money loses value. This loss becomes a form of "taxation" that pays for ever-growing government debts, say monetary analysts Craig R. Smith and Lowell Ponte in their recent book, "The Inflation Deception: Six Ways Government Tricks Us ... And Seven Ways to Stop It!"
It's one of several sneaky ways politicians tax us by using inflation and manipulation, Smith and Ponte say, and now a prominent economist echoes their analysis.
Former longtime University of Maryland economist Carmen M. Reinhart writes in Bloomberg News that "financial repression" apparently has become a fixture in Federal Reserve policy.
"Our politicians are robbing American savers so that government can go on borrowing $58,000 every second to continue their reckless spending," says Ponte, a former think tank futurist and radio talk host.
"They manipulate rates so you earn 'negative interest' and lose part of the value of your savings to inflation," adds Smith. "To add insult to injury, then the politicians tax the interest as if it were a gain instead of a loss. They rob you twice."
For media interviews with Craig R. Smith please contact: Bronwin K. Barilla at 1-800-950-2428 or firstname.lastname@example.org.
Inflation Deception TV Ad Censored by
12.5.11- Two provocative new animated television commercials
developed by Swiss America Trading Corp., a national investment firm,
will begin airing nationally on DISH and DirecTV satellite networks
today, despite attempts by major broadcast and cable networks to block
them from the public airwaves.
The first commercial, titled"PAT BOONE DEFLATES
THE INFLATOCRACY," features Boone challenging Bernanke and Obama
as they unleash their "2012 Stimulus Plan" by bombing New York City
with armloads of $100 bills from a hot air balloon over Central Park.
The second ad,"WHAT'S REALLY
INSIDE FORT KNOX," humorously asks why the U.S. Government and
Federal Reserve have for 40 years refused congressional and other
requests for an independent audit of the contents of America's
national gold repository.
Major broadcast and cable TV networks have refused to air these ads
because of their purported "political" content. Google TV has broken
this censorship of the ads by the old establishment media, making it
possible for DISH and DirecTV to begin airing the ads today.
The official response from major television networks stated that
commercials with any political message are: "something we try to
avoid" or they "do not meet our standards on public symbols."
The ads feature animated characters of President Barack Obama, Federal
Reserve Chairman Ben Bernanke and entertainer /activist Pat Boone. The
animation is by award-winning filmmaker Ray Griggs.
Swiss America Chairman Craig Smith toldWND.com
last week that the intent of the ads was not to make any political
statement. The goal, he said, was to take what we thought was a
humorous approach to a timely, important and widely-misunderstood
economic topic in order to advertise our company and promote our
"These commercials are intended to be an entertaining means of
communicating why our present economic policies are destined to fail,"
says Smith, co-author ofTHE INFLATION DECEPTION: Six
Ways Government Tricks Us...and Seven Ways to Stop It! The book
includes a Foreword by Pat Boone. The ads offer viewers a free,
postpaid copy of this 272-page book that retails for $19.95 in
These new animated commercials represent a collaboration between RG
Entertainment Ltd., creators of the highly-acclaimed 2010 documentary
WANT YOUR MONEY," and Mr. Smith's and Dr. Ponte's book publisher,
Idea Factory Press.
"Our goal is to present fresh, engaging ways to explain the urgent
need for Americans to shrink the Federal Government's size and debt,
and to restore both a personal and national gold standard," says David
Bradshaw of Idea Factory Press.
Both TV commercials are available for viewing online or on Swiss
America's new iPad application"The
Gold Standard," which launched last week at the iTunes App Store.
This App offers real-time precious metals price quotes as well as a
wide range of built-in multimedia educational resources. The App is free.
For media interviews about the ads, corporate media censorship in the
free and open public discussion of ideas, the economy and more,
contact: Bronwin K. Barilla at 1-800-950-2428 or
EU TODAY, U.S. TOMORROW?
Bonds Becoming the Graveyard for Dying Currencies
By Craig R. Smith, Chairman, Swiss America
11.9.11 -- What is happening today in Europe is a perfect example of what occurs when the ability of a debtor to service their debt comes into question.
Italian ten-year bonds have increased 33% in four days, and today the top blew off with an additional 10% increase. Bond rates have moved from under 3% to over 7%. These increases were mild compared to what happened in Greece.
Italy now finds itself with $2 trillion in debt, with the need to borrow more to stay alive, and now they must pay over 7% to get it!
The U.S. will have $15 trillion in debt any day now.
I want you to ask yourself, what would happen if in the United States, where we need to borrow $3.5 billion per day just to survive, interest rates which are now at 2% rose to 4-5% over a one-week period?
You would see a complete meltdown of the U.S. financial system, banks would be frozen in their tracks.
Every U.S. bank would find themselves forced to lend every penny they have to keep the government alive. This would starve the private debt market. The result: corporations would not be able to borrow to finance inventory, payroll, flooring, factoring receivables, etc.
Individuals would not be able to finance auto loans, real estate mortgages or use credit cards. It would bring our 'too-big-to-fail' U.S. economy down to it's knees.
And before you think it can't happen, take a look at major countries like Russia, England, Germany (to name a few) where this has already happened.
Italy is in total chaos today. This scenario is now infolding there right now.
If you look at gold prices in terms of Euro or other foreign currencies, they are up huge today. Only in terms of dollar is gold soft. But this anomaly will be short-lived because the dollar is still viewed as a "safe haven".
The Eurozone is panicked. The world sovereign debt crisis is HERE! It is unfolding right before our eyes.
Over the long-term, gold will be the best place to hide from the devaluation of currencies and equities currently under way.
It had to happen. The central banks have been putting a band aid on a wound that needs major surgery. That surgery will need to be done, sooner or later. Better the former, where there is still a chance. If they wait until later, the scenarios of hyper-inflation will be worldwide, not just country-specific.
For additional media interviews with Craig R. Smith or Lowell Ponte contact: Bronwin K. Barilla at 1-800-950-2428 or email@example.com.
SEVEN REASONS OBAMA'S "TAX THE RICH" PLAN WILL
"Class Warfare Will Make Economy, Unemployment and Society
Worse, Not Better," Warns Monetary Expert
10.3.11 -- President Barack Obama now says he will sign no jobs
legislation unless "the rich...the millionaires and billionaires...pay
their fair share" in higher taxes.
"Mr. Obama's new jobs proposal would impose $15 in tax increases for
every dollar in government spending cuts," says Craig R. Smith,
co-author of the widely-praised 2011 book The Inflation Deception: Six
Ways Government Tricks Us...And Seven Ways to Stop It!
"This is a road to ruin for our economy and America's future," warns
"President Obama has already increased government's 'take' of all the
wealth America produces - our Gross Domestic Product (GDP) - by 25
percent. He has enlarged the government by 25 percent in less than
three years and wants to take even more from America's producers,"
"Such class warfare will make America poorer, not richer, for seven
reasons," says Smith, the chairman of Swiss America Trading Corporation.
"The richest 3 percent of taxpayers already pay 52 percent of all
income taxes - nearly double their share of total national pre-tax
income - while the bottom 51 percent of Americans pay no income taxes
at all. So who isn't paying their 'fair share' of national defense,
highways and other benefits we all enjoy equally?" asks Smith.
"The U.S. Constitution says we're all supposed to have equal
protection under the law - except, apparently, the tax laws," says
Smith, who in 2010 co-authored the book Crashing the Dollar: How to
Survive a Global Currency Collapse.
"America already has the highest corporate tax rate in the world - 35
percent," says Smith. "And the top 10 percent of households pay 45
percent of ALL U.S. taxes, which in the words of one U.S. Senator is
'a higher tax burden on upper income earners than any other
"We are already the most 'progressive' nation on earth," says Smith,
"yet President Obama seems obsessed with waging war against those who
produce the wealth and already pay sky-high taxes....with killing the
geese that lay America's golden eggs."
"Some contribute a lot more to society than others - and not just in
taxes," Smith says, "yet President Obama's tax-the-rich policies will
harm such contributors in seven ways."
"Number One," says Smith, "is that 65 percent - nearly two-thirds - of
Mr. Obama's targeted rich are business owners or investors. If more of
their capital is expropriated by government, they will have less to
invest in new and expanded businesses. Government will gobble up the
seed corn from which future prosperity would have grown."
"Government, we need to remember, doesn't really produce much of
anything," says Smith. "So where will Mr. Obama get the wealth to
'spread around' after he's taxed to death all those who produce the
"Number Two," says Smith, "is that less private capital to invest will
mean less hiring and fewer jobs, especially by the capitalists who
create America's small businesses. One study estimates that the new
taxes President Obama seeks will destroy up to 1.2 million jobs."
"Number Three," says Smith, "is that the rich account for 36 percent
of all charitable contributions. President Obama wants to abolish
tax-deductible charities so that government gets this money instead,
and so people in need will be forced into dependency on government.
Unlike charities, however, a welfare-state government has no incentive
to make people productive, independent and self-reliant."
"Number Four," says Smith, "is that in the long run government won't
really get more than 19.5 percent of Gross Domestic Product through
higher taxes on the rich, according to research by San Francisco
economist William Kurt Hauser. Higher taxes prompt the rich to move
overseas, use more tax avoidance techniques or shrink their
businesses. According to Hauser's Law, when government exceeds this
tax threshhold it makes the economy worse but gains no more revenue
Even if taxing the rich did work, government getting more and more of
its total revenue from fewer and fewer people makes society unstable -
like an upside-down pyramid balanced on its tiny peak. If those rich
flee the country, or go broke, the loss of this narrow tax base will
leave the government in a terrible way - as has happened in California
with its "reverse gold rush" as the rich now rush with their gold to
relocate in other states.
Maryland imposed a special tax on millionaires, expecting to make
billions more in revenue. The taxes it collected instead fell as
millionaires fled the state, forcing greedy lawmakers to reconsider.
As politicians from Presidents John F. Kennedy to Ronald Reagan
demonstrated, the way to increase government revenue is to cut taxes,
increase prosperity for all, and thereby harvest more tax money by
taking a smaller piece from a much bigger pie.
"Number Five," says Smith, "is that less revenue from higher taxes
will goad government into using the one form of taxation people cannot
escape - inflation. Politicians such as Mr. Obama have become addicted
to printing paper money out of thin air, which gives the government
money by devaluing every dollar Americans have honestly earned and
"President Obama has already devastated America's economy by spending
more than $5 Trillion of such stimulus money," says Smith. "Then, with
the Federal Reserve, Mr. Obama has built a dike of imposed near-zero
percent interest rates to hold back the tidal wave of inflation this
"This dike is about to break, flooding our economy with devalued
dollars and economic devastation," says Smith's co-author of The
Inflation Deception Lowell Ponte, a former think tank futurist.
"Through inflation Mr. Obama has robbed everyone who trusts the U.S.
Dollar, both here and abroad," says Ponte. "Inflation, however, is the
cruelest and most regressive of taxes, hurting the poor most of all
because they need every dollar they have to retain its purchasing
power. President Obama instead chose to rob the poor through inflation
to enrich the government."
Almost everyone - rich, middle class, or poor - has ways to hedge
against inflation destroying the value of their savings, as either
Smith or Ponte can explain during an interview.
"Number Six," says Ponte, "is that Mr. Obama is using the old
Democratic Party 'Tax Trap.' Almost a century ago politicians promised
that an income tax would tax only the rich, and people who envied the
rich got suckered into supporting it. Decades ago the politicians
promised that the Alternative Minimum Tax (AMT) would tax only those
rich folks who weren't 'paying their fair share.'"
"Today nearly half of American families are paying an income tax that
was supposed to hit only the rich," says Ponte, "and Mr. Obama
promises, if reelected, to extend the Alternative Minimum Tax to pick
the pockets 70 million Americans or more, most of whom earn scarcely
more than average income."
"Wake up and smell the tax trap!" says Ponte, who along with Smith
co-authored a major September 2011 White Paper titled Re-Making Money.
"With the inflation that's about to flood America, we'll all be making
a million dollars or more - but that income will have less real
purchasing power than $50,000 in today's dollars."
"President Obama is setting us ALL up to pay sky-high taxes as if we
were rich," says Ponte. "He's already set in motion the ultra-high
inflation that will make this happen. For heaven's sake, open your
eyes and see how he's setting America's private-sector workers up for
"Number Seven," says Ponte, "is that a house divided against itself
cannot stand. President Obama is playing the usual Democratic Party
'divide-and-conquer' politics of pitting people against each other by
race and class.
"You cannot build a healthy, prosperous, free society," says Ponte,
"through a politics that violates two of the Bible's Ten Commandments
- "Thou Shalt Not Covet Anything That Is Thy Neighbor's," and "Thou
Shalt Not Steal," even if President Obama is acting as your middle-man
promising to take what somebody else has and to give it to you."
"This politics of envy and class warfare will frighten away investors,
both domestic and foreign," says Ponte. "It is putting our economy
into a death spiral that will impoverish everyone who remains in the
socialist America Obama is creating - everyone, that is, except a tiny
class of political rulers that will eventually devour each and every
minority that has anything left to steal."
"Mr. Obama will cannibalize America's poor as well," says Ponte. "In
his famous Berlin speech Barack Obama described himself as a 'citizen
of the world.' As a radical left ideologue he meant this. Even
America's poor are rich by world standards, and Mr. Obama will
eventually confiscate what the poor here have, too, and redistribute
that along with the rest of America's wealth and vanishing prosperity
to the world. Every American will be a loser in President Obama's
DEMONIZING THE RICH
"With his popularity plummeting, it's easy to see why President Obama
is following his Chicago community-organizer handbook Rules for
Radicals by Saul Alinsky - who taught how to demonize your opponents,
polarize every difference of opinion into black hats versus white
hats, and win by making reasonable compromise impossible by fomenting
class warfare," says Ponte.
"Mr. Obama is desperate to demonize the rich to distract voters from
his own failure," says Ponte.
WHAT IS YOUR "FAIR SHARE" OF TAXES?
"Taxes on the rich will hit Middle Class Americans, too," says Craig
R. Smith. "The rich created and own the companies that make what you
buy, and you will wind up paying their higher taxes passed on to you
in the form of higher prices."
"This," says Smith, "is what South Carolina U.S. Senator Jim DeMint
explains in his September 2011 investigation The Folly of 'Taxing the
Rich.' Successful businesspeople create the jobs, paychecks, taxes,
products and prosperity on which the Middle Class, the government and
the poor all depend. Confiscating their investment capital will bring
capital punishment down on all of us."
"We need an open, honest political debate over what each taxpayer's
'fair share' should be, and what kind of society we want," says Smith.
"Do we want the free market, small government society that America's
Founders set forth in our Constitution, or the sort of Euro-socialist
redistribute-the-wealth collectivist governmental system most of our
ancestors fled to America to escape?"
CRAIG R. SMITH and Lowell Ponte are available for interview on all or
any part of this press release.
To arrange an interview, contact: Bronwin K. Barilla at 1-800-950-2428
U.S. Senator Jim DeMint (R-South Carolina), "The Folly of 'Taxing the
Rich': Why You Can't Soak the Rich without Drying Up the Middle
Class." September 2011.
"Diving Into the Rich Pool: Imposing Higher Tax Rates on the Wealthy
Can Have Unintended Consequences" (Editorial), The Economist,
September 24, 2011.
"Hunting the Rich: Taxation and Class War..." (Editorial), The
Economist, September 24, 2011.
Thomas Sowell, "You Can't Tax the Rich," National Review, September
Robert Frank, "The Price of Taxing the Rich," Wall Street Journal,
March 26, 2011.
N. Gregory Mankiw, "I Can Afford Higher Taxes, But They'll Make Me
Work Less," The New York Times, October 9, 2010.
TODAY'S RECESSION TRIGGERED 40 YEARS AGO BY NIXON,
SAYS MONETARY EXPERT
He Shows How "We Can Fix Nixon's Mistake and Restore American
8.12.11- In recent days the Dow Jones Industrial Average fell
by more than two thousand points and put in peril trillions of dollars
of value held by investors large and small and by employee pension funds.
The Earth-shaking tremors that caused this plunge began not with
President Barack Obama - but exactly 40 years ago this month with a
Republican president, says a prominent monetary expert.
On August 15, 1971, President Richard Nixon shocked world leaders and
central bankers by severing, without warning, the U.S. Dollar's
convertibility to gold.
Historians looking back will refer to this date as "the day the dollar
Without this golden anchor, the dollar has been adrift and sinking for
40 years. As have the world's other paper currencies that for
stability had been pegged to the dollar's value.
"President Nixon freed the government to print all the paper money
elected politicians wanted for warfare and welfare," says Craig R.
Smith, co-author of the widely-praised new bookThe Inflation
Deception: Six Ways Government Tricks Us...And Seven Ways to Stop
It (published in July).
"This was the turning point that made today's America an
'inflatocracy,' a government of, by and for inflation," says Smith,
"and destroyed the stable value of our money."
Smith is also co-author of a new White Paper (to be published August
15) that explains and documents how Mr. Nixon's destruction of the
gold-backed dollar unleashed a domino effect of nightmarish
consequences. Its unintended, indirect consequences may include two
oil embargoes, soaring gas& food prices, three Middle East wars,
encouragement of terrorism and risk of nuclear-armed terrorists, as
well as skyrocketing American debt that now exceeds our nation's
annual income. Today a tidal wave of debased paper money is washing
away American savings, income, jobs, prosperity and values through
The good news is that Smith, founder and Chairman of Swiss America
Trading Corporation, in his new book and in this White Paper -
Re-Making Money: Ways to Restore America's Optimistic Golden
Age - offers a variety of positive solutions to fix Mr.
Nixon's terrible mistake....and to regain American prosperity.
Click here for
a free copy of "RE-MAKING MONEY". To interview Craig R. Smith or
his co-author Lowell Ponte, to request a copy of their White Paper or
their new 272-page bookTHE INFLATION DECEPTION, Contact:
Bronwin Barilla at 800-950-2428.
Surprising Facts from RE-MAKING
What cost $1 on August 15, 1971 - the day 40 years ago that Nixon
removed the dollar's gold anchor and unleashed inflation - in 2011 now
costs on average more than $5.65.
Measured in inflation-adjusted dollars, the average American today
earns the same income as he or she would have 30 years ago. Inflation
has kept the purchasing power of American wages flat for three decades.
Despite $5 Trillion in recent "stimulus spending," America's economic
growth for the past two Quarters has averaged an anemic 0.85 percent,
within the margin of error of being zero or lower. This means that we
may already be in a double-dip Great Recession. New economic research
shows that Keynesian "stimulus" doesn't work in modern societies.
The Federal Government now borrows 42 cents of every dollar it spends.
The government now borrows $58,000 every second, $3.5 million every
minute, $210 Million every hour....24/7.
For perspective, the U.S. Government now borrows - and adds to the
debt run up by spendaholic politicians that our children and
grandchildren must someday pay - as much money, in inflation-adjusted
dollars,every two hours as we once paid for the entire
Louisiana Purchase in 1803 plus Alaska in 1867 - about two-thirds of
all American public and private land west of the Mississippi River.
Twice as many Americans now work for government as work in all of
51 percent of adult Americans now pay no income tax, and a 2011 Gallup
Poll found that 47 percent of Americans now believe the government
should impose more redistribution of income.
45 percent of all American households have at least one person living
there who receives some form of regular government check. By the time
84 million baby boomers are retired, more than 60 percent of American
households will be receiving regular government checks.
Nearly 40 percent of America's Gross Domestic Product (GDP), comes
from federal, state or local government spending.
Since President Barack Obama's January 2009 inauguration, the share of
America's GDP taken by the Federal Government has grown by roughly 25
percent - from 19 percent of America's total income to more than 24
Government, in other words, has effectively grown 25 percent
(one-quarter) bigger during just the past two and one half years under
President Barack Obama.
The outgoing President of the Federal Reserve Bank in Kansas City said
that America "is no longer a market economy," that our economy is now
"crony capitalism" in which companies succeed or fail because of their
contributions to politicians.
NEW BOOK REVEALS SECRETS OF AMERICA'S RULING
"Inflatocracy is literally killing
7.1.11 - America's economy seems trapped in a downward spiral
of permanent high unemployment, sinking home prices and near-zero
The Federal Reserve's massive stimulus program had little impact on
the U.S. economy besides weakening the dollar... Federal Reserve
Governor Alan Greenspan told CNBC last night. "There is no evidence
that huge inflow of money into the system basically worked," says
We are facing a fast-approaching tidal wave of inflation that could
sink our economy and the U.S. Dollar, and plunge our world into
conflict and chaos.
Everything seems upside down. The old Keynesian rules leaders looked
to for economic recovery in the past now appear not to work, like a
compass spinning unpredictably and wildly in an unseen, fast-changing
Investors, savers and the rest of us trying to earn a living or
survive on a fixed income in today's economy feel disoriented,
uncertain and worried.
And on June 30th the Federal Reserve will end its stimulus program
called QE2 (Quantitative Easing 2). This $600 Billion infusion of cash
printed out of thin air in recent months supposedly has kept America's
growth rate from falling below zero and prevented our economy from
stalling and falling.
Add this to rioting in Greece, and four other European nations on the
brink of insolvency, and we could be only days or weeks away from
global economic collapse.
In his new bookTHE INFLATION DECEPTION: Seven Ways Government
Tricks Us...And Seven Ways to Stop It!, monetary expert Craig
R. Smith and his co-author former think tank futurist Lowell Ponte
expose the long-unseen powerful forces behind the current economic
Smith and Ponte offer seven ways we can restore economic stability.
And they show how, come what may, you can secure your life savings and
protect your family's future while riding out the arriving storm.
Behind today's crisis is "the Inflatocracy, a new kind of government
of, by and for inflation," that has staged a quietcoup d'etat
and replaced the government of America's Founders, writes Smith,
the founder and Chairman of Swiss America Trading Corporation.
America's Founders believed in small government, low taxes, frugality,
thrift and individual responsibility.
The Inflatocracy is very different. It uses inflation as a secret form
of taxation to fund a huge and ever-expanding government.
The Inflatocracy uses inflation and the always-growing welfare state
it makes possible to redistribute wealth from those who work hard and
save to others who spend beyond their productivity and serve the
DECEPTION uncovers new scientific research that shows how
inflation and the devaluing of our dollars literally changes brain
neurochemistry, like a mood-altering, perception-altering drug.
American Exceptionalism is real, Smith and Ponte show, not only
because of our free minds and free markets but also because those with
genetic traits for entrepreneurship left their oppressive homelands to
settle in the United States.
As America has become an Inflatocracy, with no more frontiers and
ever-more-restricted opportunities like the European states most of
our ancestors fled to escape, write Smith and Ponte, Americans who
still carry their forefathers' entrepreneurial DNA are suffering
elevated rates of stress, frustration, illnesses, suicides and
The Inflatocracy is literally killing off the old-fashioned kinds of
Americans who made our country successful, prosperous and free, they
In place of the values of America's Founders, the Inflatocracy is
imposing a collectivist dependency on government and
anti-individualist, anti-free market conformism that inevitably will
lead to stagflation and failure.
Smith and Ponte explored other facets of today's economic crisis in
their widely-praised October 2010 bookCRASHING THE DOLLAR: How To
Survive A Global Currency Collapse.
To Interview Craig R. Smith or Lowell Ponte, or for reviewer
copies of THE INFLATION DECEPTION and CRASHING THE DOLLAR, Contact
Bronwin K. Barilla at 1-800-950-2428 or
Will the World Return To a Gold Monetary
Authors offer 24-karat solutions to coming inflation tsunami
in "The Inflation Deception"
7.15.11 -- A decade ago author and executive Craig R. Smith
wrote a groundbreaking book, "Rediscovering
Gold in the 21st Century: The Complete Guide to the Next Gold
Rush", which announced the beginning of a new generational (20
year+) bull market in precious metals.
Mr. Smith said then, and repeats now, "It is never too late to change
direction!"Rediscovering Gold was written to help readers...
1. Learn how and why we should diversify assets based on historical
2. Understand why gold is timeless wealth and the basis for all money.
(Even if Fed Chair Bernanke remains confused on this topic.)
Four years ago Mr. Smith explained to the world"Why
the Quiet Bull Market of the 21st Century is About to Roar!" and
why we should expect $2,000/oz. gold in the years ahead. He released a
free to the public Special Report"Why Gold's Future
is Bright" quoting eighty monetary experts, including Ambrose
Evans-Pritchard, International Business Editor forThe London
In late 2007 Mr. Evans-Pritchard said, "In today's terms, $850 gold
would be equivalent to $2,000 an ounce, suggesting that the current
six-year bull market in precious metals may have much further to run."
Today Mr. Evans-Pritchard astutely announced inThe London
of the Gold Standard as world order unravels". "As the twin
pillars of international monetary system threaten to come tumbling
down in unison, gold has reclaimed its ancient status as the anchor of
InThe Inflation Deception Mr. Smith and co-author Lowell Ponte
explore several variations on how to go about returning to a gold
standard -- as a nation and as individual citizens -- before the new
"Inflatocracy", led by Fed
Chairman Ben Bernanke and the Obama Administration crash the dollar
and further exacerbate today's "debt threat."
Mr. Bernanke told Congress this week that a new QE3 stimulus program
is being prepared in the wings, which would crush T-bonds and the U.S.
Dollar while boosting equities, gold and inflation.
"Mr. Bernanke is willing to keep expanding the Fed balance sheet,"said Smith. "More
security purchases may be required," said Bernanke.
"It should be no surprise the world's ultimate currency -- GOLD -- has
reacted sharply. Today gold prices climbed to fresh 2011 highs, up $20
to $1,585 an ounce," says Smith. "When QE3 materializes, gold prices
will head over $2,000 an ounce very quickly and $50+ an ounce silver
is a certainty."
For further study on the topic of"WHY
A GOLD STANDARD NOW?", read Mr. Smith's 2004 Essay which outlines
a variety of paths leading back to the gold standard, as well as
"MONETARY POLLUTION AND THE GOLD STANDARD", a classic speech given by
Ferdinand Lips, author ofGold Wars.
Fed Signals QE3 to Boost Stocks, Gold& Inflation
7.13.11 - Federal Reserve Chairman Ben Bernanke told Congress
Wednesday that a new stimulus program is in the works, thereby
boosting equities, gold and inflation.
"QE3 is seriously being considered and perhaps has already started,"
says Craig R. Smith, author and Chairman of Swiss America.
"This is exactly what Lowell Ponte and I suggested in our newest book,
'The Inflation Deception'. Mr. Bernanke said more stimulus may
he needed. "There is more we can do if we need to act".
"Wall Street is dancing in the streets as QE2 has boosted equity
prices so far in 2011," says Mr. Smith. "The unspoken 'third mandate'
of today's Fed is to 'levitate' the stock market."
"The Fed's fourth apparent mandate is to make the economy appear to be
improving to likewise levitate President Obama's reelection prospects.
The Fed and Obama's misery index is rising fast."
"No wonder Mr. Bernanke has become Wall Street's best friend. The Fed
is basically pushing investors toward the stock market," said Smith.
"Mr. Bernanke is willing to keep expanding the Fed balance sheet,"
said Smith. "'More security purchases may be required,' said Ben. The
goal will be to keep 'exceptionally low Fed funds rate.'"
"It should be no surprise the world's ultimate currency -- GOLD -- has
reacted sharply, rushing to fresh 2011 highs, over $20 an ounce," says
Smith. "When QE3 materializes gold prices will head over $2,000 an
ounce very quickly and $50+ an ounce silver is a certainty."
Congressman Ron Paul asked Mr. Bernanke if he thought gold was money.
Mr. Bernanke hesitated, then flatly said "No", nor does he think that
Treasuries are money.
"But if gold is not money, what IS money? Paper? Debt?" ask Smith
"Without a universal standard for a money system, how in the world do
we establish the value of anything?" asked Smith.
"Running an economy on undefined 'money' is an example of the gambling
on the 'bigger fool theory'" said Smith.
"This is a terribly reckless way to run a country which controls the
world's reserve currency."
Bottom line: "Mr. Bernanke's Fed has lost control of the economy and
Ben is flying by the seat of his pants by pursuing a very dangerous
path," said Smith, as he warned in his books"Crashing the
Dollar" and"The Inflation Deception."
"Helicopter Ben" (or as depicted on Smith's new book cover, "Hot
Air-Balloon Ben") "is madly creating money while Americans sleep, in
preparation for the next work day,only to be rewarded with devalued
U.S. dollars!" said Smith.
"This country is in deep trouble," warns Smith, "with 'leaders' like
Mr. Bernanke, Mr. Obama and Mr. Geithner in charge of our financial
"This is why owning physical gold is no longer a luxury, it is a
NECESSITY! (unless you are willing to give the govt the remaining
amount of money you did not already give them in taxes)," says Smith.
"Inflation will soon get the rest."
"Bernanke: Fed May Launch New Round of Stimulus" - CNBC
"Gold hits record high on Bernanke, euro worries" - Reuters