Monthly Archives: February 2013

Building A “Harvest Kitchen” For Your Homestead

By: Tom Chatham

When a person decides to become self sufficient and provide their family with homemade goods they need to keep one thing in mind. Being self sufficient means your homestead will become, out of necessity, a small factory. For those with the means, there may be several specialized buildings on your property to handle all of the various types of production you require. For many people, especially those new to the self sufficient lifestyle, this may be more than you can handle financially in the beginning.

In constructing a new homestead it will probably be more convenient, if no necessary, to utilize your kitchen for most of your production projects. The kitchen of a typical home will usually fall far short of being ideal especially in space. Even if you start a homestead with an existing home on the property, you will probably want to expand the kitchen or even add on a “harvest kitchen” to provide the proper setting for all of your future chores.

A harvest kitchen is one designed especially for the production of homemade goods. It provides plenty of counter space, cabinet space and room to store and utilize all of the specialized equipment you will need. It will have window space for starting seedlings, sinks for washing equipment and vegetables, storage for canning supplies and tables to perform more than one task at a time.

The amount of home production you plan to do will determine how large your kitchen will need to be. When you start listing all of the things you want to ultimately do you may be surprised at the size of the list and the amount of space you will need. Most people start with a conventional kitchen and try to adjust their operations around the space available. This may be necessary at first but eventually it will become a headache when you have to continuously move and reposition equipment before performing even menial jobs.

This is why a harvest kitchen will become important to you. You must first list all of the operations you intend to do in your kitchen when you have fully expanded your homestead operations. Then determine how much room you will need for each piece of equipment and design the kitchen around your needs. The design should allow for an easy flow around your kitchen while performing several jobs.

What equipment do you need to plan for? Are you going to extract honey? If so you need room for the extractor, uncapping tub and bottling tank. If you intend to butcher your own meat, a good butchers block will be invaluable. If you intend to grind your own meat, a meat grinder will need a place for easy use. If you plan to do a lot of canning, you will need plenty of counter space and easy access to the stove. If you plan to do a lot of baking, a large table with a large rolling board will be necessary. If you plan to grind grains and nuts you will need a place for your grinder. If you have a milk supply, you may need room for dairy equipment such as a cream separator, butter churn or cheese making supplies. If you intend to make soap or candles you will need space for those as well. While some operations can use the same areas, you will want to give the larger equipment a space of its own.

As you can see, just a few of the things you may want to do will require much more space than the typical kitchen offers. Planning for the type of operations you will ultimately do and designing the kitchen around your needs will ultimately make you more productive and the process will be more enjoyable. The addition of a harvest kitchen may not be possible at first but for any serious homesteader it should be part of your long range plans.

If your kitchen is to be an addition to a current structure you may even want to do something to enhance the design further such as put a root cellar under it or add a small greenhouse to it. If the harvest kitchen has a wood cook stove, it can provide the heat needed for the greenhouse during cold weather allowing you to start plants earlier or even grow some warm weather plants in the winter. A root cellar under the kitchen will allow you to process and store your harvest for winter storage and go shopping even in the worst winter weather. To make movement of products easier, you may even want to install a dumb waiter between the cellar and kitchen. The possibilities are endless.

A large kitchen will be a focal point during harvest season allowing the space necessary to bring the whole family together for processing and quality time that can be shared by everyone. The warmth radiated by a wood stove and the smell of freshly baked goods will make your harvest kitchen a favorite place to congregate during the dark, cold days of winter. Having the proper amount of space to perform operations will make kitchen tasks much more enjoyable and help to produce quality products that your family will enjoy the year round.

Prepare to Protect Yourself From The New Ponzi Currency

By: Tom Chatham

Recently when the G20 met they discussed plans to deal with the devaluing currencies around the world. The same bankers that created this problem are going to fix it by creating another problem. When the system breaks down they intend to fix it by making the problem bigger.

The idea is to make the IMF the new Global FED and use SDR’s as the new world currency. Once the bankers do this they can start their Ponzi scheme all over again but on a larger scale. What the bankers don’t own when the system fails this time, they figure they will own by the time it fails again. Creating a world currency that is still under their control will allow them to decide who the winners and losers are in the world. They will be able to redistribute the wealth and resources of the world anywhere they want.

The bankers are counting on this to continue their looting of the world and are counting on a gullible public to go along with it. If the public stands by and allows this after the currency fails all I can say is, the people deserve to lose everything they have, which they will. When the currency fails it will mean that everyone that has produced excess over the years, and stored that excess production in the form of fiat currency for future use, will lose it and have to start producing and saving all over again. That will mean that all of your excess production ended up in someone else’s pocket. This is what fiat currencies are designed to do.

For anyone that has been keeping up with the machinations of this group of international swindlers, it is obvious that some sort of self preservation is in order. Before they can destroy the system as we know it, it would be beneficial for local communities to devise a medium of exchange they can use and have it in the wings ready to go when the system breaks. Gold and silver are preferable but most people will not get on board until it is too late so something else may be needed.

If most Americans held just $25 face value in pre ‘65 silver coinage, that would be enough to circulate and establish local commerce. That does not sound like a lot of money but keep in mind, this amount in the 1940’s was a weeks pay ($1,299 annually) to most people and prices reflected that fact. The minimum wage was 40 cents per hour and a quart of milk cost 15 cents. A recalibration of prices to 1940 values would be a starting point to get things moving again. These two small steps by the population could avert disaster and provide a foundation to return to a stable monetary system. Unfortunately, very few Americans will make the small sacrifice now to insure a transition can take place without a great deal of chaos.

Even if there is not enough pre ‘65 coinage available to do this, the purchase of 20 oz of silver bullion by individuals would have the same effect. Getting silver into the hands of as many individuals as possible is the only long term solution to this fiat madness. The use of gold coins in this situation would act as the medium for larger purchases.

The use of local barter currency is an alternative that would work well but would be limited to the locality where issued while silver would be universally accepted. Barter script could be used universally but it would take a great deal of coordination to make it accepted. This would take time and the chaos experienced would make it difficult initially.

When the current fiat currencies fail we must not allow a new fiat currency to take its place. This will be nothing short of knowingly selling ourselves into debt slavery for life. Any attempt to subvert this fiat transition will likely be met with force projected by the surrogates of the ruling class. When this happens you will have to decide how you will deal with these people. The future of this nation will be determined by the actions we take during this crisis.

Disposing of the Useful Idiots

By: Tom Chatham

There have been a lot of wild stories floating around about FEMA coffins, rail cars with shackles and guillotines. DHS is buying billions of rounds of ammo and thousands of rifles and pistols and armored vehicles, enough to arm a small army. The speculation is that all of this is to take out the patriots in society that will defend the constitution. Let’s explore that scenario for a minute.

The current government is without a doubt transforming this nation from a prosperous capitalist nation to a poor third world nation at breakneck speed. The reigns of power have been seized and control is almost complete. Once the bankers and corporations have extracted all of the wealth that can be had, they will move on to greener pastures and what is left of the U.S. will be left to the sociopaths that want to continue their social experiments in failed ideologies.

The final hurdle they will have to navigate will be the heavily armed partisans in this country that like things the way they used to be. That is what some of the weapons and ammo are for. These few million hardcore American patriots will have to be hunted down and destroyed before the real social engineering can begin. Most of these people will have to be killed outright because they will refuse to live under a dictatorship and will refuse to play nice.

That leaves three groups in the former U.S., the ruling oligarchy, the remaining working class and the useful idiots. The useful idiots made themselves useful by allowing the oligarchs to buy their votes. This allowed the rulers to attain power and change the nation as it is. Once the oligarchs have seized complete power, they will no longer need to buy votes, so what will happen to the useful idiots? In a socialist system everyone has to work to produce for the State. The useful idiots in this nation do not work, do not want to work and do nothing but consume production from the working class. It was ok to provide for them when the working class was footing the bill but once all of the production belongs to the State that will have to stop. The State will want to keep as much of the production for itself as is possible because they feel they deserve it because they are superior to the masses and it will also be very profitable for them.

When the breakdown finally comes, the useful idiots will likely be the ones loaded onto railcars and disposed of in the coffins. These people cannot take care of themselves and when the state ceases providing them with the goods they need and want they will riot. Most of these people live in the cities and they will be the first places to become unruly when the goods stop flowing. These are the first places the rulers will have to pacify before they can move on to the productive rural areas of the country.

If you are a dictator, and you now have complete authority over the populace, who are you more likely to want to keep alive, people that consume a lot and produce nothing or those that produce everything and will obey you. That seems pretty self evident. The patriots will have to be eliminated because they want to destroy the rulers and the useful idiots will have to be destroyed because they contribute nothing useful to the country.

One of the wild cards in this soon to be event is the involvement of the Muslim Brotherhood and their surrogates in this country that have infiltrated the government with the idea of turning the U.S. into another Muslim country. For more information on this element see our previous article Enemies Foreign and Domestic. These forces will turn on the radical left wing that seeks control and attempt to dispose of them as well at some point. There may be many factions fighting in this country in the near future with many different goals so there will be no shortage of interesting times. Based on historical precedent, this crisis could start at any time but should be at its’ height around 2020 and wind down by 2025 so you might want to make your plans for self preservation based on that time line.

Right now the battle is being fought in the temples so those most dedicated to their cause will probably win. Those with the least dedication that seek the easy way through life will likely not see the conclusion of this struggle. In the end, many will either die on their feet as free men or on their knees as slaves. How you choose to live or die in the future will be your legacy.

The main problem the rulers will have is the fact that the patriots will not give up easily. While the rulers and their surrogates will be fighting for conquest and control, the patriots will be fighting for their very lives and that of their families. The government forces will hold back due to fear of dieing while the patriots will hold back nothing because at that point they will have nothing to lose but their lives and everything to gain by winning. This is one of the elements that will decide the outcome of the coming conflict. Will someone fight harder for a paycheck or for freedom and their way of life? In any event, the patriots can be assured of one thing, that the useful idiots will be dispatched before the fighting ends.

Preparing For a National Fuel Shortage

By: Tom Chatham

The availability of fuels in society is what literally makes the wheels go around. The U.S. is addicted to petroleum products and we would find it hard to suddenly go without. Our fuel supplies and distribution system are just as fragile as our electrical grid and food supply chain and could be cut off for any number of reasons.

An EMP/CME, war or financial collapse are just some of the situations that could cut our supplies and leave the nation in a very bad situation. Without liquid fuels we won’t get to work, go to the grocery store, grow process and transport food, or mine and transport fuel such as coal to keep the power on. We may not be able to get shipments of goods from overseas such as food, clothing, building materials or oil. The sudden lack of fuel would shut down society as we know it.

In a technologically advanced country it is only prudent to have sufficient backup systems to enable society to continue functioning if a catastrophe should happen. Fuel is one of the linchpins of an advanced society and contingencies should be in place to replace conventional supplies in an emergency.

While we have the ability to create several different types of fuel locally in an emergency, most of them require a feedstock that we must grow and process before they can be used. Fuels such as alcohol and bio-diesel are good for emergencies but will be difficult to acquire in many places such as urban areas where the crops cannot be grown in sufficient quantity to be viable. Even if these fuels were produced in rural areas in quantity, we would still need to use a considerable percentage of the fuel for transport to other areas just as we need to burn petroleum for transport of gas and diesel today. A more widely available source of fuel needs to be used to insure availability in most areas.

The most widely available source of fuel that we have is wood. It can be used in many different ways from wood stoves for heat to producing steam power to producer gas for vehicles and generators. Wood is a versatile fuel that can be used on site in its raw form with little modification and can be procured almost anywhere from locally available sources.

The most prominent use of wood fuel today is for heating. Those that have a wood stove and a supply of wood have the ability to produce heat to stay warm and cook food when other forms of power are not available. These capabilities are tremendous in themselves when times of crisis arrive but with a few additions to your wood burning accessories you can increase your capabilities many times.

A wood gas production unit burns wood in an oxygen starved environment to create a flammable gas that can be used to run most gasoline engines. These units can be of moderate size and provide the fuel needed to run a car or generator when needed. A unit can be attached to the rear of a vehicle to provide power for road use to enable transportation when no liquid fuels are available otherwise. The use on agricultural equipment can assure the continued production of food products to insure a supply of food for the population. Wood chips provide the fuel for the unit and 16 to 20 pounds of wood will equal about one gallon of gasoline. In a fuel emergency this type of unit can help to provide transportation and electricity reducing the hardships you will be facing.

An old truck with a producer gas system can provide you with many capabilities while keeping your investment relatively low. Not only can this vehicle provide you with transportation but with a few additional items, can provide you with a backup power source. The addition of a few deep cycle batteries to the cargo area of the vehicle connected together and connected to the vehicles charging system utilizing a battery isolator, they can be connected to a power inverter to provide AC power to your home in a limited way. This system will allow you to not only have emergency transportation but limited power as well.

As mentioned earlier, a fuel disruption can also cause a power disruption if it continues for very long. This can put you in a very difficult position unless you have sufficient backup systems to provide for your needs. This one system can provide many uses while depending on only one fuel source that is locally available in most cases. In an urban environment where a wood stove and firewood can be used, this system is a logical fit to enhance your resources. Where a wood stove cannot be used, a vehicle equipped with the system outlined can be kept anywhere a typical vehicle can be kept. The amount of wood fuel will be limited but can enable you the ability to relocate when others can not.

An enhanced system where a slide in camper is placed on the truck and battery storage is located under the truck bed and the producer gas system is located on a swingout carrier on the rear bumper can provide you with a portable shelter, transportation and power unit all in one. In an urban environment, a unit such as this can make a prolonged disruption of fuel and power a more survivable event by allowing relocation to a less dangerous area while maintaining a reasonable living standard.

While supplies can be cut off in disasters they can also be cut off on purpose in some cases. A terrorist action targeting production and distribution systems can happen at any time and even the government might cut supplies if they wish to restrict movement by the population in any way. While it is possible to store large quantities of fuel it is also required in many places to notify the local authorities of this storage due to fire regulations which may result in them confiscating your fuel in crisis situations. The storage of wood is not as regulated in many cases and allows the stocking of fuel reserves without much notice from locals.

The ability to restock your fuel supply from multiple sources frees you from the limiting factors placed on society by energy sources, regulations and people in general. A producer gas system will allow you the flexibility to take advantage of opportunities that the general public will not. While others will be reeling from shortages, you will remain mobile and well supplied with power.

The ability to fuel your vehicle may also open up job opportunities during a shortage. Products will still be needed by the population and being able to transport some of those products can earn you a regular income and the ability to provide yourself with free fuel will make you very competitive in the transport market.

Where might you get a supply of wood if you own no woodlot? You can buy it of course in the form of cord wood which can also supply a wood stove. You may be able to get a free supply from neighbors in the form of tree limbs and cuttings. Another source is the many tree cutters that clear the power lines around the nation. They cut and chip truckloads every day and must dispose of the chips somewhere. You may be able to get an ample supply just for asking. Having a few hand tools to cut limbs for fuel from local sources is advisable should you find yourself on the road and in need of fuel in an emergency evacuation.

This fuel source has the ability to replace the current fuels we require and provide unlimited energy for independent homesteads in emergency as well as normal circumstances. The ability to produce local energy on a sustainable basis provides the nation with security in many forms that cannot and should not be dismissed for the sake of convenience. The availability of cheap, renewable energy sources at the local level will be necessary in years to come if our energy situation changes drastically in a negative way.

Problems and Solutions

By: Tom Chatham

The following is an excerpt from Rebuilding the Republic

The advancement of civilization has happened by a sequence of technological improvements in the world.

Western Ideology
Revolution in Weapons
Agriculture Revolution
Industrial Revolution
Sanitation & Medical Revolution
Demographic Explosion
Transportation & Communication Revolution

Each of these turning points was built on the previous technology that allowed the expansion of human knowledge and a rise in our standard of living. This is the ideal sequence of progress and the U.S. by chance or design followed it in perfect order. This is one reason for our continuous progress and wealth creation. When a nation progresses in a different order, it has been shown to lead to unbalanced development and often chaotic conditions. When any of these technology points are compromised, they weaken all points following them just as a damaged floor in a multi-story building weakens everything above it. If the integrity of that floor is compromised, everything above that point will ultimately collapse. While technology may continue to expand, a disintegration of the living standard will ultimately follow with a degree of chaos. The only solution to resolve the dysfunctional system is to return to the technology level where the problems are inherent and correct the imbalances. Our industrial base is in decline and the agricultural base is about to become dysfunctional with the rise in input costs. The only solution to rebalance and stabilize this situation is to return to the agricultural sector and correct the unsustainable nature it is built upon. Once the agricultural sector is stabilized in a sustainable way, we will have a good foundation to rebuild our industrial base. The only sustainable system that works in the agricultural sector is the small diversified family farm.
The ability of small farms to produce crops with a minimum of fuel inputs provides the farm with a sustainable production ability that will allow food production regardless of the national fuel disposition. This production capability is crucial during a national crisis that disrupts the transportation and distribution systems. The dispersion of small farms nationwide near the potential markets will allow for realistic distribution scenarios during emergencies that limit transportation abilities. This production and distribution capability will become more critical as the duration of the emergency lengthens. Production and distribution systems circa 1900 can provide a frame of reference for prolonged situations where support systems must be reconstituted from technologically insensitive sources. A catastrophic failure of critical infrastructure will stress agricultural production necessitating a high percentage of farmers within the population that can utilize manual techniques to sustain the population. This is a niche that small family farms can fill almost exclusively in a disaster providing an essential national security asset.
While many of the solutions we require can be implemented by a new generation of farmers, one of the most destructive elements that inhibits prosperity is the government itself. The government agencies that seek to regulate and coerce producers without regard for rights or scientific facts, have destroyed the small producers in this country at the behest of multi-national corporations seeking a larger market share. The destruction of individual rights have accompanied government largesse in the slow abandonment of the principles of free enterprise. It is becoming less likely that any improvement will come from the federal level and will force individuals and groups to initiate change at the local level. The control of county governments by freedom minded individuals will have to lead the changes necessary to improve the business climate in the U.S. before family farms can achieve the freedom necessary to be truly prosperous again. Only when local governments declare federal laws and regulations null and void and are prepared to back the declaration with force will a new foundation be laid. Federal control must be rolled back to levels that pose no interference to local businesses or allow corrupt federal agencies the use of hostile tactics to impose their will on individual citizens. A new revolution to secure the rights of free men will be the key to unlocking the inherent prosperity we posses but are unable to use in the current repressive regulatory environment.

The Road To Collapse and Tyranny

By: Tom Chatham – Author of The American Dream Lost

The western world as we know it will not last much longer in its’ present form. The architects of this collapse will extract as much of the wealth as they can before they finally pull the plug and watch as the nations tear themselves apart from within. Make no mistake, this is a designed collapse and has been planned for decades. Keep in mind that real wealth is made up of hard assets like precious metals, land, production equipment, mineral resources and businesses that produce a physical product. These are the assets that the engineers will take possession of just prior to the total collapse of the affected nations. These are the things that will have value after the collapse and those that have possession of them will make the rules for whatever type of society we find ourselves in.

There are certain sign posts on the road to collapse that act as warnings to those receptive to the signs. These signs can help those attempting to navigate the times to prepare for the final stages when they will be in the greatest danger. Countries go through some stages faster than others or even skip some stages so the signs must be observed to estimate where you are in the countdown to chaos. The signs to watch are the following.

Currency Wars

Capital Controls and Nationalization of Retirement Accounts

Trade War

High Inflation

Price Controls

Military Aggression

Hyperinflation

Sovereign Default

Chaos and Social Breakdown

Martial Law

When a country’s economy begins to falter, the government will attempt to deflect blame and divert attention with other things. As the government appropriates the last of the nations’ wealth and the final destruction of the currency is in sight, many times they will go to war to hide these facts. When inflation begins to enrage in the population the government will invoke price controls to appease the mob, but this will ultimately cause shortages and set the stage for the chaos that follows. Those that believed in the government will be caught unprepared and will be easy to manipulate by those in charge and will be used in many ways.

Gun control is not present on this list due to the fact that most countries already have gun control in effect at this time. While gun control can be activated at any time by the government of collapsing countries, it will almost certainly happen prior to chaos due to the governments need to control the chaos with force.

The U.S. may be a special case though due to the fact that gun ownership is tightly woven into the very fabric of the nation. This will no doubt give the engineers a harder time of planning a reaction to the planned chaos. The U.S. government has several scenarios on paper to deal with the chaos as it plays out. They may provide a false flag attack according to one DHS insider, in a major city such as D.C. which will be blamed on patriots, constitutionalists and Christians in order to garner government support from the population to go after these types of individuals. This is designed to create a civil war that will give the government cover to commit crimes against citizens and eliminate their enemies. This is only one scenario but seems likely given the current climate in this country. The engineers will try to eliminate weapons for fear they will become targets by those who know what is happening but in all likelihood this will fail.

The engineers expect the crisis to end in their favor in some form of tyranny that they control but even the best laid plans never survive the first battle intact. This means they will have contingency plans to deal with the changing tides of chaos as citizens react to government operations. Those that see the signs and prepare for troubling times should have their own contingency plans to deal with changing situations on the ground where they live. The next ten years will be very fluid and you need to be adaptable to survive with your family and resources in tact.

The fate of the nation will lie in many things such as who controls the farmland and water resources in the country. These things are mainly found in the rural areas where government resistance will be the greatest. These are things that must be controlled by the government to insure control of the country and its’ population. Those who control the food, water and energy will have a great deal of power.

As stated in a previous article, we may be facing not one war but three to fight inside this country, a revolution against the government, a civil war against government supporters and a war against foreign troops at some point. It is not out of the realm of possibility that the government will bring in mercenaries from abroad if they seem to be loosing ground to the citizens. More information on the governments’ plans can be found in a recent article at Northeast Intelligence Network concerning a DHS insider. Those that plan on some type of armed resistance should insure they ration their resources to enable them to get to the end of the crisis. The fate of nations often times rests on the shoulders of a chosen few willing to do the hard things to insure a future worthy of those who have died to keep the torch lit.

Mala Prohibita

By: Tom Chatham

Basically Mala Prohibita means something that is illegal because someone says it is. That is much different from Mala In Se meaning something that is illegal because it is bad in and of itself. Most people know that things such as rape, armed robbery, murder and assault are not acceptable behavior. These things hurt others by the mere act of doing them so civilized society declares them illegal.

But what about the things that are illegal just because someone in charge says they are? Is it a bad thing to drive 80 instead of 60? Is it a bad thing to drive without a license or without tags on your car? Is it bad to sell raw milk to a neighbor? Is it bad to own a gun that shoots 600 rounds per minute rather than one that shoots 20 rounds per minute? Is it bad to build a structure on property you own without a building permit?

It can be argued that some of these things are illegal because if the circumstances surrounding them get out of control, someone could get hurt. That has a lot to do with taking personal responsibility and using good judgment. Those that make these laws claim they can keep you safe if only you live the way they tell you to. Many of these laws are enacted for three reasons.

- To maintain control of a larger group by a smaller group.

- To generate revenue to support the smaller group and provide a means of force to maintain control.

- To force the social agenda of one group onto another group.

In the most basic sense, a law is only a law if someone has the force to enforce it. A dictator can make any law he wants because he has the force to punish people if they don’t comply. When a group of people know something is bad in and of itself, they don’t need a law to tell them so and to prevent someone from doing it. All that is required by them is to decide on a penalty if it is done. Laws are all about force and control and nothing more.

Laws are a way for a social hierarchy to push their values and lifestyles onto the broader population in a way that makes everyone feel abnormal if they do not comply. This is the way they keep everyone in line. When this does not work they apply pressure to noncompliant individuals to invoke some sort of pain on them to force compliance. It may be monetary pain, loss of property or even loss of freedom. Most people have become so accustomed to this type of coerced living style that they no longer question it. Some do and they are the constant targets of the social engineers. These non conformist people must be brought under control or destroyed as the engineers see it before more begin to question their authority.

This always leads to the same outcome for countries and the human race as a whole. Eventually the laws become so convoluted and all encompassing that nothing you do is acceptable. The society eventually tears itself apart, usually with a great deal of blood shed before it is over.

When three basic premises are adhered to a society can live with basically few laws and prosper in relative harmony.

-Do unto others as you would have them do unto you or simply do not infringe on someone else’s life, liberty or pursuit of happiness.

-Respect the private property of others.

-Take responsibility for your actions.

These things may seem very basic but the population as a whole ignores these simple things on a daily basis and then wonders why there are so many problems in the world. The problems we face in life can be traced back to these simple things that society must embrace once again before our problems can be solved. The social engineers will fight that transformation with everything they have because it will mean the loss of their power to manipulate society into their vision of Utopia.

The power of laws comes from the power to enforce. Not until the society brings enough force to bear against the social engineers will the laws that hinder our growth and happiness be abolished. Not until the society once again embraces the three basic premises will they have the collective power to bring that force to bear. Unfortunately, that may not happen until after our society has torn itself apart once more.

Will The NY FED Try To Pull A Goldfinger?

By: Tom Chatham – Author of The American Dream Lost

As one of the financial capitals of the world, New York has some of the worlds’ largest financial companies. Among them is the NY branch of the privately owned Federal Reserve Bank. This bank is actually owned by some of the largest banks in the world. As a center of global finance, it only made sense in the past to store some of the gold from many countries there so trade imbalances could be quickly satisfied by moving gold from one pile to another. The Federal Reserve operates on the confidence of other central banks around the world.

As of 2010 the NY Fed had something on the order of 200,000,000 troy ounces of gold in storage for many different nations. It has become common knowledge that many of the worlds’ banks and institutions have leased out and sold literally tons of gold in the last several years. The gold stocks have been moved around so much the last few years, at the very least on paper, that rightful ownership of much of it is now in question.

Since the Fed is merely storing this gold for other countries, they have the right to withdraw it at any time and repatriate it to local bank vaults, at least in theory. With the U.S Dollar coming under pressure in the last few years and the reserve currency status of the Dollar now in question, many governments are now contemplating the return of their gold to backstop their own currencies if something happens to the dollar.

Recently Germany decided to bring some of their gold home and decided to repatriate about 374 tons from France and 300 tons from the U.S. The Fed is currently holding about 1,500 tons of Germanys’ gold. Since Germany is only asking for 20% of its gold back from the Fed that would seem like a small matter to resolve. For some strange reason, Germany will have to wait 7 years to get that amount out of the Fed. This raises some very troubling questions.

Some people have speculated that much of the gold has been leased or outright sold and very little remains in the vaults. The fact that no one is allowed to audit their gold stocks is also a troubling sign. Let’s just suppose for a moment that the gold has been sold. What would that mean?

Keep in mind that the Federal Reserve is a privately owned bank. It is owned by some of the largest banks in the world. If they sold this gold the parent banks would almost certainly have to know about it and approve the transactions. Also keep in mind that this gold is owned by governments henceforth the citizens in many cases and not the banks themselves. If the banks sold this gold they profited from it immensely, at least until they have to replace it. With the price of gold at near record levels it would be devastating if the banks have sold all of that gold and had to replace it at much higher prices. That presents another problem.

If the Fed had to buy large sums of gold to replace stocks, what would that say to the markets? The bankers have always called gold a barbarous relic and don’t consider it real money. If the Fed suddenly started buying large sums of gold it would signal to everyone that they consider gold more valuable than the money they print. Remember, the Dollar is the world reserve currency so why do you want to own any gold? If they sold the gold, and printed money was just as good, then they could just replace the gold with currency, right?

With the large amount of gold in the vaults, 300 tons should be an easy matter to fix by just buying it back from the current owner with newly printed money and no one would be the wiser. That would be easy unless the gold is not physically in the vaults. If it had been removed and was somewhere else in the world, they would have to go into the world markets to buy it back, thus exposing themselves. Some have speculated that much of this gold has ended up in China, and if so, they probably won’t want to sell it back anytime soon.

So, you are a banker that has sold 1/3 of a trillion dollars in other peoples gold and now they are starting to ask for it. What do you do now? If they accept cash instead you’re ok but they don’t want cash, they want the hard stuff. Buying back all of that gold would be impossible because once people realized you were printing more money to buy it they would refuse to sell at any price. That is if you can even find that much gold to buy.

But why would you need to print more money? What happened to the money you got from the original sale? Gee, maybe you shouldn’t have given everyone all those multi million dollar salaries every year.

So what happens when you tell everyone you don’t have any gold to give them? They won’t come after the U.S government because they have no control over the Fed. They will come after the bankers with a vengeance. So as a banker how do you save your neck without having to give the gold back?

I’m sure everyone has seen the James Bond movie Goldfinger. The arch villain wants to destroy the U.S. supply of gold in order to make his gold worth more. How do you destroy gold? With a radiological bomb of course, making it radioactive for a very long time.

If a “terrorist” group made its way into the NY Fed vaults and exploded a radiological bomb, everything in the vault would be radioactive for a very long time. If the blast was contained in the vault and only irradiated the contents, it would be an easy way to eliminate gold that does not really exist. This would let the bankers off the hook as none of the gold could be removed or even audited. Would someone do something like that for real? What would you be willing to do if you stole 1/3 of a Trillion dollars in gold and wanted to cover it up?

Could a bank stage something like this? Not on its’ own, but with the help of a major government that it basically owns, it would be a simple matter. Would the U.S. government do something like this? Why not? It would get the bankers off the hook and provide the government with a crisis to institute even more measures to lock the country down. We know the government has no shortage of lame plots that it is willing to feed to the gullible public and they have little concern about any casualties.

Is this speculation? Of course. But if the gold is really gone, how will they hide it? I suspect that it is gone and the crisis that is building will reveal it sooner rather than later. Where do I think it is? To allude to an old song, all the gold in New York City, is in a bank in the middle of Switzerland in somebody else’s name.

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