A Short History Lesson

The last month has seen some volatile action in the financial markets. Just as a child slaps the water in a kiddie pool to make some waves, that is what the manipulators are doing to set the stage for some of their bigger moves this fall. I expect some of the really big moves to be made by President Bush before he leaves office in January. Many presidents are concerned with leaving a positive legacy as they leave, but President Bush's approval rating is so dismal, that I don't believe he really cares. He has implemented many plans already that are on the docket for the global elite.

When the Bear Stearns investment bank ran into financial solvency issues last month, and JP Morgan Chase offered to buy them out with a deal backed by the Federal Reserve, this move was a major sign that the markets movers are attempting to consolidate the power base. Ultimately, there are too many individual players out there to make many of their plans a reality. As I indicated then, Bear Stearns would just be the first casualty of the economic tsunami heading this way.

I read an interesting article from the Associated Press today. Every now and then, the mainstream media lets a little insight slip through among all the other nonsense that is usually there. Most of this information mentioned below came from many points I made over the last month, but it is always interesting to have points reaffirmed by others. This came from Tom Raum commenting that the government will respond to the current housing crisis and weakened dollar with increased federal regulation.

Tom Raum states in these excerpts from his article.
If history is a guide, Congresses and presidents don't just tackle problems. They turn them into programs, departments and new regulatory regimes. Huge buildings stand around the nation's capital as monuments to past crisis-management efforts.

-- The energy crisis of the 1970s following the Arab oil boycott resulted in the creation of the Department of Energy.

-- The Sept. 11, 2001, terror attacks gave birth to the Department of Homeland Security.

-- The Great Depression led to a slew of New Deal federal social programs. Many of their successors remain today.

-- The Federal Reserve was a response to bank runs in the early 1990s, the Pentagon was a crash construction project to put services fighting World War II under one roof, the Department of Housing and Urban Development owes its 1960s origins to President Johnson's war on poverty and concern about growing inner-city crime.

Conservative economists argue that free markets do tend to be self-correcting, and government intervention often makes things worse.

Boy, that is an understatement! I wonder if the same kind of comments were made in the Roman senate as Rome watched it's downfall. I'm sure many still denied that Rome was in any trouble while the German tribes were occupying land left deserted by the Roman legions.

All of the current moves are designed to increase federal control and minimize the rights of the citizens. With the future plans of the manipulators, the population must be docile and controlled. Remember when I described during the History of Money series the Hegelian dialect of thesis, antithesis, and synthesis. An event is created to cause a problem, resources are made available to combat or correct the conditions of the problem, and then a solution is created that they always wanted that would not have been possible if the problem didn't exist. This formula is used over and over again in history.

Well, the current plan that Tom Raum refers to is to have the Federal Reserve to have more and much broader power and eliminate the "smaller" agencies currently in charge of financial regulation like the SEC (Securities and Exchange Commission) and the FTC (Federal Trade Commission). Again, they are trying to consolidate the power base. Fewer players and more power make is easier to implement their plans. Beware of the changes coming later this year!

As with all Saturdays, I will recap key financial indicators that provide a lot of insight into what is really going on in the financial markets. All of these indicators bounced around again this week, consolidating a bit more from last month's wild ride. Gold closed slightly down on Friday from last week closing at $917.00 per ounce. Silver rose slightly from last week closing on Friday at $17.87 per ounce. The price of oil hit a new record high closing at $116.97 per barrel. The US dollar index strengthened slightly closing at 71.93 against the other major world currencies.

The price of oil will likely really shoot up the next month as the travel industry prepares for the upcoming vacation season in the United States. The price at the gas pump always spikes right before Memorial Day so that early vacationers of the summer season are hit with the increased prices. This makes for some huge profits for the oil companies. By the way, during these volatile financial times, do you hear that any oil companies are having problems? No. They are reporting record profits. Exxon Mobil reported a US corporate record $11.7 billion quarterly profit on February 1, 2008. Shell Oil reported a European corporate record £13.9billion pounds or $27.5 billion dollars for the same quarter on January 31, 2008. This is $75 million per day in profit. Do you still think that prices are not manipulated?

Do you still want to sit back and see what happens? If you do, you will lose most of your assets. As always, the choice is yours.

Your sons and daughters will be given to another nation, and you will wear out your eyes watching for them day after day, powerless to lift a hand. A people that you do not know will eat what your land and labor produce, and you will have nothing but cruel oppression all your days. The sights you see will drive you mad. Deuteronomy 28:32-34 (NIV)

If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com