271 DAYS!!!
Final Part

TO SEE WHAT THIS MIGHT REALLY MEAN, CONSIDER THESE FACTS:

In the first place, if the genuine professional computer programmers on Y2K are correct, the Bureau of Engraving won't be printing ANY currency for the Fed. in 2000, because there won't be any electricity to run the presses!

In the second place, if these new $50 billion are for the Fed's reserve account, they are not part of the existing supply of the printing-press currency in circulation today, anyway, nor are the $150 billion which the article stated they already have in stored in reserve. Therefore, the $200 billion will be totally new currency added to the currency already in circulation.

In the third place, depending on which figures you believe, there are between $438 and $489 billion dollars of "currency in circulation." Let's take the average, or $464 billion. The 7/15/98 issue of the Atlanta Journal & Constitution quoted the former head of the Fed's Y2K project as stating that all but $18 billion of our currency in circulation is held overseas. Assuming the Fed is correct and they are going to need $200 billion to meet our withdrawal demands before the end of this year, that will increase the currency in circulation in this country by a factor of eleven times!! Do you think that it's possible that this could be slightly inflationary? There's no doubt in my mind. Of course when all the new currency is withdrawn by "nervous Americans," the banks will close and then cash will be extremely valuable – for a short period of time, because -- if the new European Currency Unit (ECU) is backed by 15% in gold as announced, it would seem logical that foreign holders of US dollars will trade them in for the more valuable ECU. That could flood the currency markets with most, if not all, of the $446 billion dollars held overseas. Then the value of the US dollar would plummet (becoming the new "northern" peso?). Incidentally, on January 15, 1999, this announcement was made by analyst Rhona O'Conell of T. Hoare & Co.: "first weekly financial statement from the European Central Bank implied that gold (bullion) sales are 'a thing of the past.' We believe that the erosion of European Official sector selling and the growth in the market perception thereof, will be enough of a catalyst to cause this (gold) market to bottom out over the coming weeks and to re-rate into a higher range thereafter."

In the forth place, if the public demand for additional currency (for Y2K, or whatever reason) does require that the Fed. issue some or all of the $200 billion, that amount of new currency would represent less than 5% of the $4,250 billion that all of us have in our checking accounts and time deposits in the banks (of less than $100,000). In other words, if only 5% of the savings were withdrawn from the banking system, there would not be any currency in the banks with which to pay the rest of the bank's depositors if they would also wish to withdraw any of their savings!!! And if you think the FDIC will be there with the rest, think again. That insurance "bluff" has only enough assets to pay off another 2%!!!

In the fifth place, nowhere have I seen an analysis of this factor in print, but consider this – the U.S. issues Treasury bills, notes and bonds, whereas the Fed issues our currency (check the cash in your pocket and you'll see "Federal Reserve Note" printed near the top of each bill). You may thinking, "so what?" Well, I believe it will make a great deal of difference to you and me as to which institution issues debt paper, namely bills, notes or bonds. And, the difference is that the Federal Reserve Notes we all carry as cash, are issued by the Fed and, as noted above, totals a mere $464 billion. However, the US debt totals over $5.5 trillion (plus whatever is owed to various pension funds and your Social Security fund, allegedly another $17 trillion) and is backed by the "paper" that the US government has issued – which is backed by nothing except our politician's promise to pay (with what?). If (when?) the US defaults on the national debt, they will be defaulting on what they have issued (US Treasury bills, notes & bonds {E, EE, Savings, or whatever}), not on the Federal Reserve Notes (the cash in our pockets) which the Fed issues. I predict that the Fed will never default on their debt instruments (cash). Thus, the conclusion of this point is that you will be better off holding "cash" (Fed. paper money) than US Treasury bills, notes or bonds! If the knowledgeable people I read & listen to are wrong, the worst that will happen is you that will lose a little interest while you hold cash. Assuming the Y2K crisis is solved quickly, you can then simply put your cash back in the bank or T-bills. If the crisis doesn't end favorably, you will at least have your savings in your hands -- to use. Logical?

Most folks have little or no understanding of our fiat money system, and your "leaders" want to keep it that way -- until it's too late. But, because I've studied this fraudulent banking system (know as "fractional reserve") for nearly 40 years, I know that by definition, it will fail if more than 7% of the savings are withdrawn (including the FDIC bluff). Therefore, since the Fed. has already warned us that they anticipate an increase in withdrawals due to Y2K (having created a $200 billion war chest of cash [out of thin air] to accommodate those withdrawals), I believe it was prudent of me to accept their offer and withdraw my savings from harms way, sacrifice the meager interest in the meantime, and sleep much better until the "avalanche" passes.

Some have accused me of precipitating such an "avalanche" merely by my acceptance of the Feds. offer, but if the system is so fragile that my withdrawals can start it, the system is worse off than I thought. If you have a martyr complex, I wish you (and your savings) the best of luck! I do not have a martyr complex. If there is an avalanche coming down the mountainside, I have a couple choices: 1.) I can pray that God will perform a special miracle to save me, or 2.) I can avail myself of the ordinary miracle He performed 66 years ago, and use my "legs" to remove myself from harms way.

The Christian Alert Network: Rev. "Curt" Tomlin, Pres., Major USA, Ret. "I have just finished analyzing a 29 page document obtained from a U.S. Congressman who, for the moment and at his request, must remain anonymous. "To set the tone for the following discussion let me remind you that since January 1992, the Federal Government has set its sights on establishing federal controls over EVERY ASPECT of every individual Americans personal life and liberties." Rev. Tomlin goes on for 6 pages, giving the features of this insidious "Minimum Security Devices & Procedures & Bank Secrecy Act," (too long to copy), but here is his summary. "The FDIC is proposing to issue a regulation requiring insured nonmember banks adopt & maintain 'Know Your Customer' programs. As proposed, the regulation would require each nonmember bank to develop a program designed to determine the identity of its customers; determine its customers' sources of funds; determine the normal & expected transactions of its customers; monitor account activity for transactions that are inconsistent with those normal & expected transactions & report any transactions of its customers that are determined to be suspicious, in accordance with the FDIC's existing suspicious activity reporting regulation." Comment: if you think you still have privacy, better think again. Rev.Tomlin recommends that "All Americans should…revert to using cash (dollars) in all business transactions instead of checks, debit cards & credit cards." Of course this means getting all your savings out of the banking system. I couldn't agree more.

Ron Paul (R-TX) says of this Orwellian nightmare: "This massive new program would convert our nation's banks into wholly-owned subsidiaries of the government-wide movement to invade every aspect of Americans' privacy." Banks who don't comply will be held liable. Government is blackmailing banks into taking responsibility for how depositors obtain their money.

If you don't believe in "capital punishment" get your capital out of banks, stocks & mutual funds, because unless I miss my bet, there is a parallel between an avalanche coming down a mountainside & the "avalanche" of withdrawal requests which will come down on your local banks in the near future.

Of course you can avoid these potential problems by holding gold &/or silver coins, namely, real money! If gold is good enough for the European Central bankers' new currency, plus all the gold bullion that they hold in their vaults (1/3 of all the gold that's ever been mined), and are now unwilling to sell (see T. Hoare quote above), perhaps it's good enough for you. I could go on, but hopefully you get the point, namely: get your savings out of paper!!!!!!!!!!!!!

GOLD GLEANINGS:
Most of you have my Position Paper #14, which delineates between "hoarders" gold and "collectors" gold coins. Unfortunately, I left out one extremely important point, so in current copies you will find this paragraph:

"Thus, we hereby state that: G.E.E. does NOT RECOMMEND CONFISCABLE GOLD COINS! We will assist you with a commission and tax free exchange of any you may presently hold, and into those coins which are not subject to such confiscation. Incidentally, you may not be aware, but under the RICO Act, when government agents confiscate drugs, cash, weapons, etc., they also confiscate the vehicle in which they found that contraband, including cars, trucks, boats and/or homes. That Act can also be applied to gold bullion bars and bullion coins. If confiscation of gold bars and bullion coins does occur again and you figure you simply won't turn them in, you are not only facing confiscation of those coins at $42/oz (which will be considered to be contraband), but the storage place where they are found by the agents. And, if the penalty for being caught with such gold coins is only as severe as it was back in 1933, you could be placed in prison for 10 years and fined $10,000, in addition to losing your car or home in which the coins were found. Is it really worth such a huge risk? We don't think so. Perhaps your coin dealer doesn't think our government will do again, that which they have already done four different times in our country's history?" But then, several former coin dealers have climbed the ladder of success, only to find that it was leaned against a prison wall.

In addition to confiscation, there is another equally important consideration as to why you should hold "collector's" coins as opposed to "hoarders" coins. APRECIATION! Two current examples. In 1997, gold bullion (and such coins as the American Eagle, Canadian Maple Leaf, So. African Krugerrand, etc.), dropped 21%, while the "collector" coins (which FDR exempted from confiscation), dropped 2.5% to 5.5%. In 1998, gold bullion rose one dollar per ounce, while our coins rose anywhere from 10.4% to 17%. Considering the present state of affairs of our "Ship (Titanic?) of State," the gold lifeboat may be the only one for your financial future, while food is your lifeboat for your physical future.

FOOD FACTS:
Our long-term food may cost more than some competitor (on an item for item comparison, that's highly unlikely), but, as John Ruskin said about 160 years ago, "There is hardly anything in the world that someone can't make a little worse and sell a little cheaper, and the people who consider price only are this man's lawful prey." The main reason we picked AlpineAire to offer you is that they have been in business for 24 years, use "state-of-the-art" procedures in processing and packaging all natural, nutritious food it really tastes good and is VERY COMPETITIVELY PRICED! As opposed to some competitors who are advertising aggressively, we use no meat substitutes, coloring or flavoring!! None of the animals used in our food have been given any hormone injections!! All of our food is sent to you in #10, easy to handle cans (not five gallon buckets, most of which end up being thrown away, especially if the lids pop off). Besides, if you order from some food companies, it's already too late, because they are 12 months out on delivery. Last year we went from 3 weeks delivery to 14 and are now back down to 5 with new machinery and 3 times the employees. But, this won't last long. A word to the wise – get your order in now, while we can still get it to you in time!!! The delivery line will definitely get longer!

If anyone is trying to give you a guilt complex regarding your acquisition of food to protect your family by calling you a hoarder, keep this distinction in mind. Webster's dictionary defines a hoarder as one who accumulates food (or other items) during a shortage. One who stockpiles does so in anticipation of a future shortage. A hoarder accumulates at the expense of others during a shortage, while a stockpiler uses foresight in order to be able to help others so they will not suffer in case there is a short-age. Since there is no shortage of food in this country at this time, no one is justified in calling you a hoarder.


Jack Weber

5 April 1999


Jack Weber's Biography: http://www.y2ktimebomb.com/Bios/jw2bio.htm



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