A Drink to Die for….Part I

April 6, 2008

Dear Readers,

First, I want to thank all of you that took the time to look at the information I recently posted on the New World Order’s plans to push the US into a totalitarian state and on the Bush family Nazi connections.

My mission with this blog is to communicate to everyone the hidden reality I have discovered through intensive research. What you don’t know CAN hurt you. I don’t want that to happen to any of us.

Blog posts can be full of opinions, delusions, and untruths. An author might assert that the moon is made of cheese or the easter bunny and the tooth fairy have tea together. In short, any opinion, no matter how insane it seems can (and is) posted throughout cyber-space.

At FoundingFather1776 we utterly reject opinion and heresay. We do more research in one day than most “main-stream-media” will do in a month. We do not simply “parrot” the truth, or re-post the latest AP or Reuter’s press release, we actively seek it out, cross-reference, research, and verify.

And what an amazing ride we have been on. All of us. We are literally living in a Matrix of lies and distortions cleverly (dare I say diabolically?) foisted on us by folks that harbor an almost inconceivable ruthlessness in their quest to own and control everything and everyone.

That brings us to today’s topic. Yes it is a conspiracy. It is insidiously prevalent. It affects ALL OF US EVERYDAY. It needs to be revealed and it needs to be stopped NOW! The science is in. The truth is out. Just spread the word.

Fluoridated water supplies were used by the Nazi’s in prison camps because it helped make prisoners docile and stupid. This eugenics mind-set of the Third Reich was transported (along with most of the top Nazi scientists like Wernher von Braun – Inventor of the V2 Rocket bomb and key player in the US space program. Just google “Nasa Nazis” for a ton of reading!) to post WWII America.

The fluoridation of municipal water supplies was started in the US in 1945 as a way to dispose of toxic waste generated from the aluminum and fertilizer industries. The Elite cabal that runs America for their own benefit felt the other “benefits” of a population consuming fluoridated water; i.e. reduced IQ, reduced fertility, and increased docility, would also be useful. In short, the US population, quite unwittingly, became subjected to the largest, longest and most diabolical chemical attack in the history of the world.

If the synopsis I have just laid out seems crazy, exaggerated or just plain wrong to you, well hang on.

Let’s back it up a little and look at the history of our loving Govt. conducting experiments on US soldiers and civilians (as always, don’t take my word for it – Cross check these facts yourself. I am BEGGING you to look into these matters closely!):



Manhattan Project injection of 4.7 micrograms of plutonium into soldiers at Oak Ridge.

U.S. Navy uses human subjects to test gas masks and clothing. Individuals were locked in a gas chamber and exposed to mustard gas and lewisite.


University of Chicago Medical School professor Dr. Alf Alving conducts malaria experiments on more than 400 Illinois prisoners.


Manhattan Project injection of plutonium into three patients at Billings Hospital at University of Chicago.

Malaria experiment on 800 prisoners in Atlanta.

Project Paperclip is initiated. The U.S. State Department, Army intelligence, and the CIA recruit Nazi scientists and offer them immunity and secret identities in exchange for work on top secret government projects in the United States.

“Program F” is implemented by the U.S. Atomic Energy Commission (AEC). This is the most extensive U.S. study of the health effects of fluoride, which was the key chemical component in atomic bomb production. One of the most toxic chemicals known to man, fluoride, it is found, causes marked adverse effects to the central nervous system but much of the information is squelched in the name of national security because of fear that lawsuits would undermine full-scale production of atomic bombs.


U.S. secret deal with Ishii and Unit 731 leaders cover up of germ warfare data based on human experimentation in exchange for immunity from war-crimes prosecution. A top-secret U.S. Army Far East Command report on Thompson’s findings reads: “The value to the U.S. of Japanese biological weapons data is of such importance to national security as to far outweigh the value accruing from war-crimes prosecution.” A 1956 FBI memorandum reveals that by the mid-1950s the U.S. knew everything about Ishii’s human experiments but agreed not to prosecute in exchange for Japan’s scientific data on germ warfare. (In other words, when it comes to human torture and sacrifice, even of American POW’S, the ends justify the means as far as the U.S. Government is concerned….and, the U.S. Government placed a very high value on knowledge of efficient ways to kill large numbers of people )

Opening of Nuremberg Doctors Trial.


Atomic Energy Commission and Quaker Oats-sponsored study of Fernald, Massachusetts residents fed breakfast cereal containing radioactive tracers.


Patients in VA hospitals are used as guinea pigs for medical experiments. In order to allay suspicions, the order is given to change the word “experiments” to “investigations” or “observations” whenever reporting a medical study performed in one of the nation’s veteran’s hospitals.


The Atomic Energy Commission authorized a series of experiments in which radioactive materials are given to individuals in many cases without being informed they were the subject of an experiment, and in some cases without any expectation of a positive benefit to the subjects, who were selected from vulnerable populations such as the poor, elderly, and mentally retarded children (who were fed radioactive oatmeal without the consent of their parents), and also from students at UC-San Francisco. In 1993, the experiments were uncovered and made public. In 1996, the United States settled with the survivors for 4.9 million dollars.


Judgment at Nuremberg Doctors Trial including ten point Nuremberg Code which begins: “The voluntary consent of the human subject is absolutely essential.”

Colonel E.E. Kirkpatrick of the U.S. Atomic Energy Commission issues a secret document (Document 07075001, January 8, 1947) stating that the agency will begin administering intravenous doses of radioactive substances to human subjects.

The CIA begins its study of LSD as a potential weapon for use by American intelligence. Human subjects (both civilian and military) are used with and without their knowledge.


Intentional release of radiodine 131 and xenon 133 over Hanford Washington in Atomic Energy Commission field study called “Green Run.”

Soviet Union‘s war crimes trial of Dr. Ishii’s associates.


Atomic Energy Commission studies of mentally disabled school children fed radioactive isotopes at Fernald and Wrentham schools.


Department of Defense begins plans to detonate nuclear weapons in desert areas and monitor downwind residents for medical problems and mortality rates.

In an experiment to determine how susceptible an American city would be to biological attack, the U.S. Navy sprays a cloud of bacteria from ships over San Francisco.

Monitoring devices are situated throughout the city in order to test the extent of infection. Many residents become ill with pneumonia-like symptoms.

Dr. Joseph Stokes of the University of Pennsylvania infects 200 women prisoners with viral hepatitis.


University of Pennsylvania under contract with U.S. Army conducts psychopharmacological experiments on hundreds of Pennsylvania prisoners.


Department of Defense begins open air tests using disease-producing bacteria and viruses. Tests last through 1969 and there is concern that people in the surrounding areas have been exposed.


University of Pennsylvania dermatologist Dr. Albert Kligman conducts skin product experiments by the hundreds at Holmesburg Prison; “All I saw before me,” he has said about his first visit to the prison, “were acres of skin.”


Henry Blauer injected with a fatal dose of mescaline at Psychiatric Institute of Columbia University per secret contract with Army Chemical Corps.


Newborn Daniel Burton rendered blind at Brooklyn Doctor’s Hospital during study on RLF and the use of oxygen


Oak Ridge-sponsored injection of uranium into eleven patients at Massachusetts General Hospital in Boston.


U.S. military releases clouds of zinc cadmium sulfide gas over Winnipeg, St. Louis, Minneapolis, Fort Wayne, the Monocacy River Valley in Maryland, and Leesburg, Virginia. Their intent is to determine how efficiently they could disperse chemical agents.

Joint Army-Navy-CIA experiments are conducted in which tens of thousands of people in New York and San Francisco are exposed to the airborne germs Serratia marcescens and Bacillus glogigii. The germs and chemicals used by the Army and Navy posed known health risks before and during the time of testing. This is documented in scientific studies cited in The Eleventh Plague by Leonard A. Cole and in Cole’s previous book, Clouds of Secrecy: The Army’s Germ Warfare Tests Over Populated Areas.

CIA initiates Project MKULTRA at eighty institutions on hundreds of subjects. This is an eleven year research program designed to produce and test drugs and biological agents that would be used for mind control and behavior modification. Six of the subprojects involved testing the agents on unwitting human beings.

A declassified CIA document dated 7 Jan 1953[1] describes the experimental creation of multiple personality in two 19-year old girls. “These subjects have clearly demonstrated that they can pass from a fully awake state to a deep H [hypnotic] controlled state by telephone, by receiving written matter, or by the use of code, signal, or words, and that control of those hypnotized can be passed from one individual to another without great difficulty. It has also been shown by experimentation with these girls that they can act as unwilling couriers for information purposes.”


U.S. Army experiments with LSD on soldiers at Fort Detrick, Md.


U.S. Army study of 2300 Seventh-Day Adventist soldiers in 150 experiments code named “Operation Whitecoat.”


The CIA, in an experiment to test its ability to infect human populations with biological agents, releases a bacteria withdrawn from the Army’s biological warfare arsenal over Tampa Bay, Fl.


Army Chemical Corps continues LSD research, studying its potential use as a chemical incapacitating agent. More than 1,000 Americans participate in the tests, which continue until 1958.


U.S. military releases mosquitoes infected with Yellow Fever over Savannah, Ga and Avon Park, Fl. Following each test, Army agents posing as public health officials test victims for effects.

Dr. Albert Sabin tests experimental polio vaccine on 133 prisoners in Ohio.


LSD is tested on 95 volunteers at the Army’s Chemical Warfare Laboratories for its effect on intelligence.


Injection of hepatitis into mentally disabled children at Willowbrook School on Staten Island in an attempt to find vaccine.


Spread of radioactive materials over Inupiat land in Point Hope, Alaska in Atomic Energy Commission field study code named “Project Chariot.”


Harvard Professor Henry A. Murray conducts psychological deconstruction experiment on 22 undergraduates including Theodore Kaczynski, the result of which, at least according to writer Alton Chase, may have turned Kaczynski into the Unabomber.


The Army Assistant Chief-of-Staff for Intelligence (ACSI) authorizes field testing of LSD in Europe and the Far East. Testing of the European population is code named Project THIRD CHANCE; testing of the Asian population is code named Project DERBY HAT.


Pharmaceutical companies conduct phase one safety testing of drugs almost exclusively on prisoners for small cash payments.


Thalidomide withdrawn from the market after thousands of birth deformities blamed in part on misleading results of animal studies; the FDA thereafter requires three phases of human clinical trials before companies can release a drug on the market.

Injection of live cancer cells into elderly patients at Jewish Chronic Disease Hospital in Brooklyn.

Stanley Milgram conducts obedience research at Yale University. We’ve talked of Milgram’s experiment in a previous newsletter, and there is a link to a great online video on the subject that is very good.


NIH supported researcher transplants chimpanzee kidney into human in failed experiment.

Linda MacDonald was a victim of Dr. Ewen Cameron’s destructive mind control experiments in 1963. Dr. Cameron was at various times president of the American, Canadian, and World Psychiatric Associations. He used a “treatment” which involved intensive application of these brainwashing techniques; drug disinhibition, prolonged sleep treatment, and prolonged isolation, combined with ECT [Electro Convulsive Therapy] treatments. The amount of electricity introduced into Linda’s brain exceeded by 76.5 times the maximum amount recommended. Dr. Cameron’s technique resulted in permanent and complete amnesia. To this day, Linda is unable to remember anything from her birth to 1963. As recorded by nurses in her chart, she didn’t know her name and didn’t recognize her children. She couldn’t read, drive, or use a toilet. Not only did she not know her husband, she didn’t even know what a husband was. A class action suit against the CIA for Dr. Cameron’s MKULTRA experiments was settled out of court for $750,000, divided among eight plaintiffs in 1988.


Pharmaceutical companies conduct phase one safety testing of drugs almost exclusively on prisoners for small cash payments.


Dr. Carl Heller, a leading endocrinologist, conducts testicular irradiation experiments on prisoners in Oregon and Washington giving them $5 a month and $100 when they receive a vasectomy at the end of the trial.


World Medical Association adopts Helsinki Declaration, asserting “The interests of science and society should never take precedence over the well being of the subject.”


CIA and Department of Defense begin Project MKSEARCH, a program to develop a capability to manipulate human behavior through the use of mind-altering drugs.

University of Pennsylvania under contract with Dow Chemical conducts dioxin experiments: prisoners at the Holmesburg State Prison in Philadelphia are subjected to dioxin, the highly toxic chemical component of Agent Orange used in Viet Nam. The men are later studied for development of cancer, which indicates that Agent Orange had been a suspected carcinogen all along.


CIA initiates Project MKOFTEN, a program to test the toxicological effects of certain drugs on humans and animals.

U.S. Army dispenses Bacillus subtilis variant niger throughout the New York City subway system. More than a million civilians are exposed when army scientists drop light bulbs filled with the bacteria onto ventilation grates.

Henry Beecher’s article “Ethics and Clinical Research” in New England Journal of Medicine.

U.S. Army introduces bacillus globigii into New York subway tunnels in field study.

NIH Office for Protection of Research Subjects (“OPRR”) created and issues Policies for the Protection of Human Subjects calling for establishment of independent review bodies later known as Institutional Review Boards.


British physician M.H. Pappworth publishes “Human Guinea Pigs,” advising “No doctor has the right to choose martyrs for science or for the general good.”

CIA and Department of Defense implement Project MKNAOMI, successor to MKULTRA and designed to maintain, stockpile and test biological and chemical weapons.


CIA experiments with the possibility of poisoning drinking water by injecting chemicals into the water supply of the FDA in Washington, D.C.


Dr. Robert MacMahan of the Department of Defense requests from congress $10 million to develop, within 5 to 10 years, a synthetic biological agent to which no natural immunity exists.


Funding for the synthetic biological agent is obtained under H.R. 15090. The project, under the supervision of the CIA, is carried out by the Special Operations Division at Fort Detrick, the army’s top secret biological weapons facility. Speculation is raised that molecular biology techniques are used to produce AIDS-like retroviruses.

United States intensifies its development of “ethnic weapons” (Military Review, Nov., 1970), designed to selectively target and eliminate specific ethnic groups who are susceptible due to genetic differences and variations in DNA.


Dr. Zimbardo conducts Psychology of Prison Life experiment on students at Stanford University.


Ad Hoc Advisory Panel issues Final Report of Tuskegee Syphilis Study, concluding “Society can no longer afford to leave the balancing of individual rights against scientific progress to the scientific community.”


National Research Act establishes National Commission for the Protection of Human Subjects and upgrades OPRR Policies to Regulations to be known as “The Common Rule.”


The virus section of Fort Detrick’s Center for Biological Warfare Research is renamed the Fredrick Cancer Research Facilities and placed under the supervision of the National Cancer Institute (NCI) . It is here that a special virus cancer program is initiated by the U.S. Navy, purportedly to develop cancer-causing viruses. It is also here that retrovirologists isolate a virus to which no immunity exists. It is later named HTLV (Human T-cell Leukemia Virus).

HHS promulgates Title 45 of Federal Regulations titled “Protection of Human Subjects,” requiring appointment and utilization of IRBs.


National Urban league holds National Conference on Human Experimentation, announcing “We don’t want to kill science but we don’t want science to kill, mangle and abuse us.”


Senate hearings on Health and Scientific Research confirm that 239 populated areas had been contaminated with biological agents between 1949 and 1969. Some of the areas included San Francisco, Washington, D.C., Key West, Panama City, Minneapolis, and St. Louis.


Experimental Hepatitis B vaccine trials, conducted by the CDC, begin in New York, Los Angeles and San Francisco. Ads for research subjects specifically ask for promiscuous homosexual men.


National Commission issues Belmont Report setting forth three basic ethical principles: respect for persons, beneficence, and justice.


The FDA promulgates 21 CFR 50.44 prohibiting use of prisoners as subjects in clinical trials shifting phase one testing by pharmaceutical companies to non-prison population.


First cases of AIDS are confirmed in homosexual men in New York, Los Angeles and San Francisco, triggering speculation that AIDS may have been introduced via the Hepatitis B vaccine.


Leonard Whitlock suffers permanent brain damage after deep diving experiment at Duke University.


According to the journal Science (227:173-177), HTLV and VISNA, a fatal sheep virus, are very similar, indicating a close taxonomic and evolutionary relationship.


According to the Proceedings of the National Academy of Sciences (83:4007-4011), HIV and VISNA are highly similar and share all structural elements, except for a small segment which is nearly identical to HTLV. This leads to speculation that HTLV and VISNA may have been linked to produce a new retrovirus to which no natural immunity exists.

A report to Congress reveals that the U.S. Government’s current generation of biological agents includes: modified viruses, naturally occurring toxins, and agents that are altered through genetic engineering to change immunological character and prevent treatment by all existing vaccines.


Department of Defense admits that, despite a treaty banning research and development of biological agents, it continues to operate research facilities at 127 facilities and universities around the nation.

Supreme Court decision in United States v. Stanley, 483 U.S. 669, holding soldier given LSD without his consent could not sue U.S. Army for damages.


More than 1500 six-month old black and Hispanic babies in Los Angeles are given an “experimental” measles vaccine that had never been licensed for use in the United States. The Center for Disease Control later admits that parents were never informed that the vaccine being injected to their children was experimental.

The FDA grants Department of Defense waiver of Nuremberg Code for use of unapproved drugs and vaccines in Desert Shield.


World Health Organization announces CIOMS Guidelines which set forth four ethical principles: respect for persons, beneficence, nonmalfeasance and justice.

Tony LaMadrid commits suicide after participating in study on relapse of schizophrenics withdrawn from medication at UCLA.


With a technique called “gene tracking,” Dr. Garth Nicolson at the MD Anderson Cancer Center in Houston, TX discovers that many returning Desert Storm veterans are infected with an altered strain of Mycoplasma incognitus, a microbe commonly used in the production of biological weapons. Incorporated into its molecular structure is 40 percent of the HIV protein coat, indicating that it had been man-made.

Senator John D. Rockefeller issues a report revealing that for at least 50 years the Department of Defense has used hundreds of thousands of military personnel in human experiments and for intentional exposure to dangerous substances. Materials included mustard and nerve gas, ionizing radiation, psychochemicals, hallucinogens, and drugs used during the Gulf War.


U.S. Government admits that it had offered Japanese war criminals and scientists who had performed human medical experiments salaries and immunity from prosecution in exchange for data on biological warfare research.

Dr. Garth Nicolson, uncovers evidence that the biological agents used during the Gulf War had been manufactured in Houston, TX and Boca Raton, Fl and tested on prisoners in the Texas Department of Corrections.


Department of Defense admits that Desert Storm soldiers were exposed to chemical agents.


Eighty-eight members of Congress sign a letter demanding an investigation into bioweapons use & Gulf War Syndrome.


Three children die at St. Jude Children’s Hospital in Memphis during participation in clinical trial for acute lymphoblastic leukemia.


Veterans Administration shuts down all research at West Los Angeles Medical Center after allegations of medical research performed on patients who did not consent.

OPRR shuts down research at Duke University because of inadequate supervision of human subject experiments..

Year-old Gage Stevens dies at Children’s Hospital in Pittsburgh during participation in Propulsid clinical trial for infant acid reflux.

18-year-old Jesse Gelsinger dies after being injected with 37 trillion particles of adenovirus in gene therapy experiment at University of Pennsylvania. His death triggers a still-ongoing reevaluation of the conflicts of interest plaguing human subject research.


University of Oklahoma melanoma trial halted for failure to follow government regulations and protocol.

OPRR becomes Office of Human Research Protection (“OHRP”) and made part of the Department of Health and Human Services.


Biotech company in Pennsylvania asks the FDA for permission to conduct placebo trials on infants in Latin America born with serious lung disease though such tests would be illegal in U.S.

Ellen Roche, a 24 year-old healthy volunteer, dies after inhaling hexamethonium in an asthma study at Johns Hopkins Medical Center. OHRP shuts down all research at Hopkins for four days.

Elaine Holden-Able, a healthy retired nurse, dies in Case Western University Alzheimer’s experiment financed by the tobacco industry.


FDA reports that, for the past four years, experiments on cancer patients were conducted at Stratton Veterans Affairs Medical Center by Paul Kornak who had no valid medical license and who repeatedly altered data and committed numerous violations of the protocols..

Inflation Fairy-Tales…..

March 21, 2008

Large dollar purchasing chart

What’s America’s real inflation rate?
If rate is so low, how come food and energy cost so much?

By Jerome R. Corsi
© 2008 WorldNetDaily:
Why is it that the federal government says the U.S. has virtually no inflation – less than 2 percent – but everything keeps getting more expensive, especially food and gasoline?Today, gasoline is well above $3.00 a gallon. “Sticker shock” comes not just from the cost of buying a new car, but from the $50.00 or more it costs to fill up the gas tank, even if you don’t own an SUV.You’re lucky if $100 buys two bags of groceries at the supermarket, even if you avoid the filet mignon.

Take a family of four to a movie theater to see a first-run film and it can cost $75 even in the Midwest. You will shell out somewhere between $6 and $9 just for one adult ticket, and you can end up spending somewhere between $65 to $75 total if all you do is spring for the luxury of popcorn and sodas.

Still, the U.S. Department of Labor’s Bureau of Labor Statistics reported in August 2007 a remarkably low inflation rate of only 1.7 percent.

Solving this riddle – that is, why everything costs so much when the government tells us inflation rates are low – is simple:

The Bureau of Labor Statistics lies.

Inflation numbers are intentionally manipulated to keep cost-of-living numbers low.

If the average chief executive officer cooked balance sheet numbers the way the U.S. Bureau of Labor Statistics calculates the Consumer Price Index, the CEO would be in jail, even without Sarbanes-Oxley reporting standards.

Why does the federal government lie about inflation?

Again, the direct answer is simple.

Telling the truth about inflation would require the Federal Reserve to raise interest rates and that would be bad for economic growth.

Besides, hundreds of billions of dollars in government entitlement payment outflows depend on the inflation number.

For instance, federal law mandates that Social Security checks increase thanks to “cost-of-living adjustments,” or COLAs, that are supposed to compensate for inflation.

So, higher inflation numbers cost the federal government millions more in increased Social Security payments.

But when the Bureau of Labor Statistics intentionally rigs the Consumer Price Index calculations to low-ball the inflation rate, Social Security entitlement payments are kept level.

As a result, retirees quietly lose billions of dollars that should have been paid out, had the cost of living numbers been reported honestly. But the government saves the expense.

How does the federal government manipulate inflation numbers?

The Consumer Price Index, or CPI, is the central statistic the federal government uses to calculate inflation.

The CPI is a complex government statistic that was introduced in the 1920s to track the market cost of a “basket of goods and services.”

Beginning during the Carter administration, federal economists cleverly redefined the CPI, with the goal of removing from the index expensive items, including food and energy, that would push the CPI higher.

Today, the Federal Reserve when setting interest rates focuses on a variation of the CPI that measures “core inflation.”

According to the Forbes “Investopedia,” core inflation excludes items such as food and energy because food and energy “face volatile price movements.”

In other words, since food and energy prices can spike upwards, as they have this year, the Bureau of Labor Statistics calculates “core inflation” without food and energy prices, under the rationale that food and energy price spikes are merely temporary price shocks that would distort the measurement of underlying long-term inflation.

To a family faced with paying rising food costs to feed the kids and skyrocketing gas costs just get to work, the definition of “core inflation” at 2 percent is a joke, not at all reflective of the increased dollars the family has to shovel out just to get by.

Even more disturbing, the Bureau of Labor Statistics’ calculation of “core inflation” is not limited merely to throwing food and energy prices out of the CPI.

The price of any good or service in the CPI market basket prone to spiking can be thrown out, under the rationale that the items with the largest price changes reflect passing market disequilibrium that would distort the measurement of long-term trends.

When removing expensive items from the CPI market basket of goods and services was not enough to depress inflation numbers, the Bureau of Labor Statistics innovated even more, changing the “weighted factors” used in calculating CPI statistics, so the results end up under-reporting the true inflation people experience in everyday living.

Econometrician John Williams maintains a website and publishes a newsletter devoted to tracking federal government manipulations of economic statistics.

Williams estimates that current Social Security payments are roughly half of what they should be if the U.S. Bureau of Labor Statistics reported the Consumer Price Index honestly.

Many of the CPI manipulations were masterminded by Alan Greenspan, chairman of the Board of Governors of the Federal Reserve from 1987 under President Reagan to 2006 under President George W. Bush.

Williams points out that one of Greenspan’s manipulations of the CPI involved the consideration that when steak got too expensive, the consumer would substitute hamburger for the steak. So, Greenspan argued, the inflation measure should reflect the costs of buying hamburger, not steak.

“Of course, replacing hamburger for steak in the calculations would reduce the inflation rate,” Williams commented, “but it represented the rate of inflation in terms of maintaining a declining standard of living. Cost of living was being replaced by the cost of survival.”

“The old system told you how much you had to increase your income in order to keep buying steak,” Williams noted. “The new system promised you hamburger, and then dog food, perhaps, after that.”

Williams properly concluded that Greenspan’s arguments violated the “intent and common usage of the inflation index.”

“The CPI was considered sacrosanct within the Department of Labor, given the number of contractual relationships that were anchored to it,” Williams wrote. “The CPI was one number that never was to be revised, given its widespread usage.”

Williams calculates that the manipulations of the CPI index cause inflation to be under-reported by as much as 7 percent.

The results of this under-reporting are dramatic, with the compounding effect just since the early 1990s reducing annual cost-of-living adjustments in Social Security by more than a third.

Greenspan’s recently released autobiographical book, “The Age of Turbulence,” openly admits how political the calculation of inflation is.

He notes that Richard Nixon imposed wage-and-price controls in 1971, even though the rate of inflation then was less than 5 percent.

Greenspan argues that the 4.5 percent inflation we experienced for the half century since we abandoned the gold standard may become the norm for the future, with the unfortunate consequence that such a high rate means we will see our saved dollars lose half their purchasing power “in fifteen years or so.”

At the height of the gold standard, between 1870 and 1913, just prior to World War I, the cost of living as calculated by the Federal Reserve Bank of New York rose only 0.2 percent annually, Greenspan notes.

The dilemma the Fed faces under our fiat currency system is that to keep inflation truly low, the Fed has to keep interest rates high.

“Yet to keep the inflation rate down to a gold standard level of under 1 percent, or even a less draconian 1 to 2 percent range,” Greenspan wrote, “the Fed, given my scenario, would have to constrain monetary expansion so drastically that it could temporarily drive up interest rates into the double-digit range not seen since the days of Paul Volcker.”

High interest rates constrict the money supply, make borrowing difficult, and generally depress economic growth.

Greenspan’s own solution was to keep interest rates artificially low, as low as the 1 percent interest rates Greenspan in 2003 aspired to hold that low for years – while simultaneously rigging the CPI numbers.

The Greenspan years can be characterized as a strategy of lying about inflation to avoid the adverse political consequences of being honest and facing the true cost-of-living music.

By lying about inflation, Greenspan justified 1 percent interest rates, which in 2003 were the lowest rates in 45 years, in a determined plan to keep the economy growing while he was at the helm.

But one result of the Greenspan liquidity party was to fuel real inflation.

So, when you wonder why food and gasoline cost so much when the government says inflation is low, just remember: You are being lied to – something we suspect you figured out long ago, just by going to the supermarket and the gas station.

Liars and Thieves….Exposed!

March 19, 2008

Monsters in Washington DC

March 16, 2008


Bob Chapman
The International Forecaster
March 13, 2008

Boston gave us the “Big Dig,” Socorro, New Mexico hosts the “Very Large Array,” but from Wall Street and Washington, D.C. we get the “Big Lie,” soon to be followed by the “Very Large Depression.” We think that most of you understand about the potential for a “Very Large Depression” which we have spoken of in several of our recent issues, but you may have been wondering about what we meant by the term: “Big Lie.” The “Big Lie” is that the recession which has been ongoing for two years and which many economists are still downplaying and are still having trouble admitting to, is just another normal, mundane downturn in what economists call the “business cycle” and that we will soon “turn the corner” and be back “in the money” after a few, or perhaps several, tough quarters. This is the unmitigated tripe we get from our “fane-stream” media. What planet are these morons reporting from, we ask? Certainly not from earth, because there is nothing normal or mundane about this recession. This is a super recession on steroids. There has been nothing like it in the past, and there is not likely to be anything like it in the future, a future that may in all likelihood include the complete and utter destruction of the worldwide financial system as engineered by the bungling Illuminati, many of whom will be destroyed by the monster which they themselves have created. We are all about to attend an encore performance on the financial stage based on the theme from a novel by Mary Shelley entitled: “Frankenstein.”

Indeed, the current financial debacle is quite unique, very ugly and totally unprecedented. Truly, this is a Frankenstein monster. All of our past recessions have been caused by contractions in the money supply accompanied and partly caused by higher interest rates which were implemented to stop unacceptable levels of inflation. This is the root cause behind the so-called “business cycle,” a term which is really just a euphemism for central bank ineptness, and in the current case, central bank malevolence which is aimed at the destruction of the old system so that a new world system can be implemented in stages, starting with the regionalization of national economies, and ending with a one world government, economy, religion and sociopolitical structure which used to be called “feudalism.” You know, the system you learned in your history classes where you have “lords” and “serfs,” the latter category being where virtually all of us will find ourselves if the Illuminati get their way. The current debacle, by contrast, has arrived on the heels of an unprecedented acceleration of the money supply as evidenced by the now unpublished M3 level of over 16%, and not on the heels of a contraction in the money supply as has been the case in the past. And while it may be true that interest rates were gradually raised over several years, which may have contributed to the current recession, the raising of rates started from the ludicrous 1% level. The Fed thus lowered the bar on interest rates just as the Bank of Japan did when their economy tanked almost two decades ago. Here we are eighteen years later, and a hapless Japan still has not recovered from its financial implosion. Will we fare any better than they did? No, it will be much worse for us. Why? Because unlike Japan, we have no manufacturing industry left to speak of, just for starters, not to mention that Japan now has the world’s largest forex reserves, while we have the world’s largest trade deficit. This dichotomy in foreign exchange between Japan and the US has happened because Japan produces tangible goods while we shuffle paper.

So how do we end up in a rampaging recession on the heels of a 16% expansion of M3? We’ll tell you how.

Normally, economic growth in its healthiest form is created through mining, exploration, manufacturing and technical innovation, not by the financial and services industries which produce very little of anything that has any real, lasting and tangible value. Ideally, the money supply should be expanded to help fuel this growth in resource production, manufacturing and research, but the expansion of the money supply must occur so as to maintain the same ratio of total money supply to the overall amount of goods being produced and which are available for both business and personal consumption. If the money supply grows at a faster rate than the rate of growth for the production of new goods due to central bank ineptness, or more likely, due to speculation fueled by the greed of the Illuminati and enabled by lax policies of co-conspirator central banks (which are owned by the Illuminati), you end up with more money chasing proportionately fewer goods. This is where inflation comes from, and the imbalance is allowed to grow, along with Illuminist profits, until the general populace cries out. Then comes the contraction in the money supply, once again exaggerated to produce a recession so the Illuminati can make a profit shorting everything in site as the contraction occurs. The recession occurs because the contraction in the money supply is greater than what is needed to balance the growth in production. And because the Illuminati know when the expansions and contractions will occur and where they will occur, they are able to make profits in any type of market, being the ultimate inside traders who never get prosecuted because they own the system. This is how they screw the public ad infinitum. But we digress.

So ideally, if the money supply increases at the same rate as production, prices remain stable and so does the economy. At least this is how it works when you have a healthy economy based on the production of resources, manufacturing and technical innovation, and a Fed with its head screwed on straight, together with financial and services industries which are proportionately smaller in terms of the percentage of the labor force employed and which are geared to support the resource, manufacturing and research industries instead of fueling speculation and creating inflationary paper profits. Unfortunately, our manufacturing industry has been gutted by the formation of the World Trade Organization in 1995 as an enhancement to the globalist agenda for so-called free trade that was started in 1947 under the General Agreement on Tariffs and Trade, and then by NAFTA and CAFTA (giving you the “SHAFTA”), increased illegal immigration (slave labor), the sellout of union members by corrupt trade union officials and a general screwing by our various and even more corrupt Congresses and Presidential Administrations over the past 60 years. The percentage of our work force that is engaged in manufacturing is now one third of what it was in 1950 and one half of what it was in 1970. Admittedly, some of the percentage losses of our manufacturing labor force as a proportion of our total work force are due to increases in technology, which have reduced the number of workers necessary per unit of production. But that being the case, where did all those profits from increased productivity go? Certainly not into the pockets of the US work force. No, instead the profits went to the very wealthy who own and run the big transnational corporations and to capital investments overseas in order to take advantage of slave labor rates by outsourcing jobs. That way, our workers here in the US get to grind away at their pitiful minimum wage service jobs instead of receiving $20 to $30 per hour working at jobs in resource exploration, mining and extraction, manufacturing and research and development. This has morphed our economy into a parody of what it once was, and is why we get a recession despite M3 growth of 16%.

You see, the only way our economy, and more importantly our disposable income, can really grow is through our financial and services industries, which is all that we really have left as a labor force. Yes, we still have some manufacturing, but it is only about 12% of GDP and provides good-paying jobs for far fewer workers than in the past due to increases in productivity. Total production outside of services, including manufacturing and mining, is only about 20% of GDP, with government spending contributing another 12%. That leaves a whopping 68% of GDP for the service sector. But the real issue of crucial importance here is not only about how much GDP is produced, but about how much of that GDP makes its way into the pockets of the US laborer/consumer as opposed to going overseas to become part of another nation’s forex reserves, to finance foreign capital improvements or to line the pockets of the elitist rich. And we can assure you that, due to rampant inflation and overstated production, the amount of GDP, which is landing in the average Joe’s pockets is getting smaller with each passing minute. Because so much of the growth burden is in the financial and services industries, and because these industries produce services which vanish after they are rendered or produce paper profits which are largely imaginary and highly inflationary, the only way we can continue to show profits and growth is by inflating the money supply and then lying about the resulting inflation. It is all about smoke and mirrors, and is nothing short of a dog and pony show for the ignorant sheeple.

In order for the financial and services industries to grow, you must expand credit at a much more rapid pace than would be necessary if you had the benefit of real growth from an economy which has a more robust manufacturing and resource sector that produces tangible commodities and goods and includes a much greater percentage of the work force so that a much larger portion of the money produced by these industries in the form of wages from higher-paying jobs makes its way back into the local economy instead of being invested overseas through off-shoring and outsourcing. Without this abundant credit, a services based economy will stagnate. Credit is what greases the wheels of our commerce now more so than ever. And in order to expand credit at the institutional level, the credit extended must generally be backed by prime (AAA) collateral. When the dot.com bust occurred, there was a massive loss of capital in the form of equities, equities that could be used as collateral for the extension of credit. Also the huge fees that were earned selling dot.com stocks disappeared, which destroyed earnings and growth in the financial industry. The huge losses also put a damper on services since fewer assets means less discretionary money and less spending, especially on nonessential services, and this led to greatly reduced earnings and growth in the financial and services sector and eventually to a recession.

Diebold Accidentally Leaks Results of 2008 Election Early!

March 1, 2008