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[Leslie <cayadopi AT yahoo.com>]

There is the published national debt (on-balance sheet >$10 Trillion),,,, and 
then there is the off-balance sheet debt (i.e think Enron)............ 
 
According the Fed this past spring, the off-balance sheet debt was over 
$99Trillion.  It includes those "unfunded liabilities", like social security, 
the current wars, etc.
 
This is the speech given by Richard Fisher, the CEO of the Dallas Federal 
Reserve Bank says that the actual number was $99.2 trillion back in May of 
this year.  The national debt has to be even higher now,,,, just look at how 
many more bail-outs have occurred since this speech.
 
http://www.dallasfed.org/news/speeches/fisher/2008/fs080528.cfm
 
A sample of what Fisher talks about:
 

"I hope that gives you some idea of just how large the problem is. And just 
to drive an important point home, these spending cuts or tax increases would 
need to be made immediately and maintained in perpetuity to solve the 
entitlement deficit problem. Discretionary spending would have to be reduced 
by 97 percent not only for our generation, but for our children and their 
children and every generation of children to come. And similarly on the 
taxation side, income tax revenue would have to rise 68 percent and remain 
that high forever. Remember, though, I said tax revenue, not tax rates. Who 
knows how much individual and corporate tax rates would have to change to 
increase revenue by 68 percent?"

"No combination of tax hikes and spending cuts, though, will change the total 
burden borne by current and future generations. For the existing unfunded 
liabilities to be covered in the end, someone must pay $99.2 trillion more or 
receive $99.2 trillion less than they have been currently promised. This is a 
cold, hard fact. The decision we must make is whether to shoulder a 
substantial portion of that burden today or compel future generations to bear 
its full weight."

"Now that you are all thoroughly depressed, let me come back to monetary 
policy and the Fed. "
 
---------
 
The only way the government can "fund" those obligations created by Congress, 
and further bastardized by the Fed and Paulson convincing Congress to 
"bail-out" their scam street / banking buddies... is by printing the money 
and monetizing the debt,,, the road to hyper-inflation.  
 
The gov't can not tax us enough to pay the obligations.  Does it make any 
sense to lower taxes now, when this kind of debt looms?  No.  But it is 
politically not doable - what is doable is to hyperinflate the money supply 
to pay for all this - something the masses won't see, won't understand, and 
never have in history, in order to transfer the wealth of savers to those 
that understand the game.
 
It is important, because you prepare very differently for Depression than you 
do for Hyper-Inflation.  The way I see it, in both cases, you need to grow 
your own food though.  :-)
 
-------------------------------------------------------------------
 
 
 
Another thing the manipulators can do is cause more "bubble markets" in order 
to keep up with inflation and ever to some degree hyper-inflation.  Those who 
identify the next bubble market, prosper and keep up with Fed caused 
inflation.
 
 
We do have some clues about just that this year.  
 
The Buffet - Obama - Volcker connection.
 
Earlier this year financial institutions were calling retirees trying to push 
Fannie Mae and Freddie Mac bonds.  Hello!  Bankrupt institutions?  I smelled 
a big rat.  (This is currently going on with long term Treasuries by the way 
- I smell another rat).  Back then, I was thinking there must be a really big 
seller in the market....and I think there are likely more big sellers in the 
Treasury market now.
 
Now we know who the seller was earlier this year, Warren Buffet.  He's sold 
all his bond positions.  (Buy low - sell high..... yields can not go below 
zero, where they are now,,,, sell bonds high).
 
And so is the bond king over at Pimco - he's selling bonds like mad....
 
So that bond bubble is in the process of bursting....the big boyz are 
selling, they've admitted this publicly.  They are not in the market for 
benevolent reasons, they are there to make money, and lots of it.
 
Now enter Obama....who has he been telling everyone that Buffet and Volcker 
are his financial advisors.  I think this is very important.
 
Buffet has sold bonds at the highs and is buying up the stock market at the 
lows (although there is likely another big leg down after a few months 
counter-trend up here).
 
Volcker, former Fed Chairman, is notorious for raising interest rates to 20% 
back in the late 70s.
 
This is key to Buffet's move, and quite likely he convinced Obama to talk to 
Volcker....and sign him up.
 
Why?
 
If you don't listen to the talking idiots on TV, you will find that the stock 
market goes up when interest rates are rising, and the stock market goes down 
when interest rates are falling.
 
What are the odds that Buffet is manipulating Obama to listen to Volcker, 
who's infamous footnote in history is raising interest rates?  I'll put my 
nickle on that one.  Buffet is deploying huge amounts of capital into the 
stock market - and it is unlikely he is playing to lose it ....  Although I'm 
sure the short term minded pundits are out there laughing at him.
 
What compeling reason could Volcker give to Obama to get him behind that idea 
to raise interest rates when the housing markets and lending markets are in 
such turmoil?  
 
1)  Well, the rest of the world is slowing down their purchases of US 
Treasuries (which pay current government obligations)....... If interest 
rates are raised, it will attract some foreign money to buying treasuries.  
(Bond principal will fall off the cliff - and totally screw the retirees and 
anyone else who is fleeing to the perceive safety of bonds....)
 
Raising interest rates might be done down the road to attract foreign money, 
to somewhat slow the hyperinflationary effects of the Fed expanding the money 
supply at unprecedented rates.  And it sure looks like Buffet, no doubt quite 
astute, has maneuvered himself to whisper in the right ear.... 
 
2)  IMO Banks are hoarding the bail-out money, waiting for the right 
deployment time to invest back into the stock market.... as a way to create 
wealth out of thin air so that they can start lending again.  We will know 
when this is beginning by watching short term interest rates set by the 
traders.  (The Fed follows the 3 month treasury rates set by traders, this 
rises when the fear factor eases....)  At some point, I would think that 
Volcker will get Obama on board.  Even though Volcker's history was to combat 
inflation.  Inflation at the moment does not seem to be the problem.... but 
it will be just over the horizon.  And Volcker's answer to combating 
inflation was to raise interest rates.
 
 
 
Odds are also, that the Fed is behind the plunge in oil --- another way to 
"combat inflation"...  There is are HUGE put option at $25 oil.... which has 
the same effect as forcing selling in the market as option market makers MUST 
hedge those options (via selling).  The Fed is authorized to intervene in any 
market is deems necessary.  While the Fed has easily manipulted the gold 
market for decades - this may not be possible long term in the oil market.  
Rigs are currently closing down because production costs exceed the price 
they are getting in the market.  Natural supply demand effects will take 
effect at some piont (even without OPEC changing their production).  World 
oil demand already exceeds supply.  It makes NO sense for oil prices to have 
dropped, except thru market manipulation by the Fed, resulting unwinding of 
carry-trades.    The gold market is very small, most people don't understand 
it, and easy to manipulate.  How long can the
 Fed manipulate the oil markets when nearly every person in the world has an 
oil demand in one form or another?
 
World demand for oil has not decreased.  
 
 
These are just some of the reasons I'm highly motivated to learn how to 
survive in a US that is collapsing.  I went thru a hyper-inflation once 
already in Ecuador... but I had the back-stop of living in the US w/dollars 
to recover.  Now what?  Network with like-mindeds.... :-)
 
 
 



>From goosecreekfarm AT gmail.com  Sat Dec  6 12:02:21 2008
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Date: Sat, 6 Dec 2008 12:02:19 -0500
From: Cathy <goosecreekfarm AT gmail.com>
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Cool, Bob.  And their address is in the newspaper article.

Cathy

On Sat, Dec 6, 2008 at 11:56 AM, bob ford <bobford79 AT yahoo.com> wrote:

>
> I just sent a small paperback book -- with cash inside-- to a couple from
> another list who were caught growing an illedgal few plants for personal
> use.
>
>