We had a special Friday show on money due to Wednesday’s technical problem

Friday, October 6, 2017

Andrew Gause

Thank goodness it’s Friday show

THE REAL WORLD OF MONEY

Andrew Gause may just be the top man anywhere for the highest quality analysis into the world of money we all live in. Andrew is a currency historian, an internationally recognized expert on the United States monetary system. He’s written two books, “The Secret World of Money” and “Uncle Sam Cooks the Books”. You can order these books as well as speak to Andrew personally. As a One Radio Network listener, you’ll have highest priority in his phone time. His # is 800.468.2646

Show highlights:

-Andy recommends a Drobo external hard drive for backing up your data.  Keep data separate from the CPU brain.

-Mother jailed for refusing to allow her child to be vaccinated.  In the US, citizens are sovereign and are protected by the Constitution.  See “A Writ For Martyrs” by Eustace Mullins.  File a writ of habeas corpus.  The courts must prove they have authority to hold this person.  Follow up with a Bivens Action.

-You can’t amend the Constitution with a local law.  The Constitution is supreme.

-People are falsely charged or imprisoned and then by forced by the system to choose between freedom and sanctions.

-If you poke the giant in the eye, expect repercussions.  Have a defense plan in place before you start.

-Two commonly held fallacies:  The Federal Reserve is part of the government.  Our money is backed by gold.

-It’s illegal to loan other people’s money to somebody else.  What happens instead is money is created.   See Modern Money Mechanics, by the Chicago Fed.  The moment you sign a mortgage or credit application, money is created.

-TARP borrowed $750 billion and handed it out to the banks.  $750 billion in debt instruments (bonds) were created.  This was inflationary.  In 2008 when the Fed Reserve bought stinky MBS, treasury bonds and agency debt, they swapped newly created money for those already created debt instruments.  It was an asset swap with negligible net increase to the balance sheet.  Increase to the money supply was when the bonds were written.

-$500 billion in new bonds were created last month and bought with money that already existed.  That sucked $500 billion out of the money supply and is a temporary dampening on inflation.  Those new bonds can be borrowed against nine times.  E.g. If you start out with $1 million, you can borrow $9 million against it.

Hour 2 

-Tax reform pushback is from globalist corporations.  Andy thinks tax reform is unlikely this year.  Reducing the corporate tax rate requires eliminating deductions;  one target is carried interest.  A hedge fund can now carry interest it earns over to future years and not pay taxes in the year it is earned.  Other targets: elimination of sales and property tax deduction, but offset by doubling the standard deduction.

-Atom says when quotes the following statement from The Creature from Jekyll Island, real estate agents laugh at him.  “For every house paid off, two other people lose their houses to the bank.”  Could Andy explain The Mandrake Mechanism in more detail and validate that G. Edward Griffith’s statement is correct?  For a $200,000 loan, you pay back $600,000 over the life of the loan.  The Fed never creates the $400,000 interest that is required to be withdrawn to pay the loan back, so it comes from two other figurative people.

-The Jewish religion doesn’t prohibit usury;  that’s why there are so many Jewish bankers and financial professionals.

-Good gifts for children: Silver dollar coins.  Richard Maybury’s “Uncle Eric” book series.  Andy’s The Secret World of Money for over 14 year olds.

-October is a hot month for stock market crashes.  It’s the end of the fiscal year.

-How does Puerto Rico get back on its feet?  Loaned more money?  Allowed to go bankrupt?  Are deeply mired in debt from prior bonds to fix electrical infrastructure and can’t borrow money to fix it now.  Restructuring seems inevitable, but the losses could cause a contagion in the municipal bonds market.  Puerto Rican bonds held as collateral will be worthless, bankers could call in those loans or require more collateral.

-Traders are short on Treasury bonds.

-Bruce asks:  if Puerto Rican bonds are allowed to be dissolved, wouldn’t that cause shortage in money supply?  Yes.  Can also issue new debt instruments for Puerto Rico and just call them something new, like what happened when the Resolution Trust Corporation was created to fix the Savings & Loan crisis.

-Puerto Rico, Guam, Northern Mariana Islands, and US Virgin Islands are protectorates.  They are inside the US.

-President Trump’s office spent $21.89 million last week, Trump’s agencies spent 11 billion in a year-ending spree,  according to OpenTheBooks.com.

-How can you lose 300,000 jobs and unemployment rate went down?  Job losses from the hurricane meant a temporary drop in people looking for work.  GDP is up, but Andy prefers looking at the ADP numbers for payroll.  Worker participation rate is dropping.  Over half of working age men that have dropped out of the workforce are on opiods.

-Bureau of Labor Statistics caught in a lie.  Reported a 2.9% increase in weekly average earnings, expected 2.5%.  But the revised August numbers, 1 month prior, shows numbers got fudged.  Uncle Sam cooks the books.

-Prices are not stagnant, are rising every time Andy goes shopping.  The official rate of a 1.1% annual rise in food prices is ludicrous.  In 1977-80 prices rose annually by 20%.

-JT says the boys are sowing the seeds of a civil war in this country.  Andy says it feels like it.  Divisiveness, separation by identity, and then you have a hurricane to come together as one.

-Comments on proposed tax reform?  15% corporate tax rate is the number we need.  Settling for 20%  wouldn’t bring back enough expatriate companies.

-Feds want the CPI to be low.  That index is tied to COLA, impacts 7.5 million people on Social Security, also labor contracts.

-Trump also wants to lower the repatriation tax as a one time shot, to get money back into the US.  Would be a boon to the US to get money back in.

Hour 3

-John asks about a NexGen home with an in-law suite built in.  Builder offers a  3% 4.5% fixed rate and pays the PMI.  18 miles outside San Antonio.  It’s a good deal.

-Andy would never buy a debt instrument.  He would be the one borrowing.

-How to plan for retirement?  Saving a $20 gold piece for every week you will live will provide a lavish life style.  Will pace inflation.

-Are silver and gold eagles worth buying instead of a St. Gaudens?  No way.

-On October 26, 3,000 new JFK documents and 30,000 without redactions will be released – everything comes out from the 50 year old trove of records.  JFK Records Act requiring the release is a law.  Trump can’t stop the release unless Congress passes another law that stops the release.  Will take time for seasoned investigators to dig through it.

-Watergate break-in was after evidence in the files on George H.W. Bush’s involvement in JFK assassination.  Files were on the 3 “hobos” who worked for Bush who were arrested hanging around the RR tracks near Dealey Plaza area.

 -Photos of the Las Vegas shooting arouse suspicion.  E.g. shooter Paddock’s blood is under shell casings on the floor.  Lone nut theory gives closure.

-NRA and Congress agree on the need for a little more gun-control, will agree to give up bump stocks.

-Mary asks about the push to put AI-artificial intelligence in everything and how it will affects coins.  Has always been a push to make things more efficient.  Zuckerburg’s proposed a UBI (universal basic income) to provide for job losses to robots.  Money will still be around, people will still be willing to pay for tangible collectibles, and a tangible item may be even easier to sell than an intangible item.  11:39.

-Do we want government to do everything for you and give you an allowance too?

-Regarding the second amendment – should there ever be restrictions are far as what you can buy for weapons?  Andy says there is no way the government should be able to have weapons that the citizens can’t have.  Jefferson said the tree of liberty should be refreshed with the blood of patriots from time to time.  Wanted a citizen army against all who would usurp it, both foreign and domestic.  The idea of a militia is that it is the duty of every citizen to have a firearm and accoutrements ready, in case the nation needs your service.  If you don’t want guns, gather a group and get a repeal of the second amendment, don’t try to dismantle it piece by piece.

-Bladerunner 2049 opens this weekend.

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Andy Gause, Currency Historian and The Real World of Money, Special Friday Show, October 6, 2017, Hour One

Andy Gause, Currency Historian and The Real World of Money, Special Friday Show, October 6, 2017, Hour TWO

Andy Gause, Currency Historian and The Real World of Money, Special Friday Show, October 6, 2017, Hour TWO