The Elites Have Lost Their Right to Rule

The Elites Have Lost Their Right to Rule
By Michael Krieger of KAM LP
March 05, 2011

"War is the growth hormone of the cancer that is Big Government."
- Alex Jones

One of my favorite quotes is from Joseph Schumpeter, who
said, “Everyone has elites the important thing is to change
them from time to time.”

Of course, this is what happens in a well functioning democracy.

The problem today and the reason why the United States is on the verge of some sort of revolution (I believe it will manifest as a revolution of ideas and not an armed one) is that the election of Obama has proven to everyone watching with an unbiased eye that no matter who the President is they continue to prop up an elite at the top that has been running things into the ground for years.

The appointment of Larry Summers and Tiny Turbo-Tax Timmy Geithner provided the most obvious sign that something was seriously not kosher. Then there was the reappointment of Ben Bernanke.

While the Republicans like to simplify him as merely a socialist
he represents something far worse.

Of course it is not just Obama. He is at the end of a long line of
Presidents that think they have some sort of divine right of kings
to rule.

Think about the Presidency of the United States since 1988. Bush, Clinton, Bush…If Obama had not won the Democratic primary we would have ended up with President Hilary Clinton. Catch my drift?

Something is not right here.

This is the United States not some sort of petty monarchy. There
is no divine right of any family or group of families to rule.

When this starts to happen you get the disaster we are now faced with. That said, the bigger point is this.

What Obama has attempted to do is to wipe a complete economic collapse under the rug and maintain the status quo so that the current elite class in the United States remains in control.

The, “People” see this ploy and are furious.

Those that screwed up the United States economy should never
make another important decision about it yet they remain firmly
in control of policy.

The important thing in any functioning democracy is the turnover
of the elite class every now and again.

Yet, "EVERY" single government policy has been geared to keeping that class in power and to pass legislation that gives the Federal Government more power to then buttresses this power structure down the road.

This is why Obama is so unpopular. Everything else is just noise to
keep people divided and distracted.

Getting Into the Mind of Ben Bernanke

I do not have a clear window into the highest levels of power in many areas such as the military or the intelligence community but I do have a very good understanding of it when it comes to the financial system and the economy.

At the end of the day everyone knows that those who can create the money and credit have the ultimate power over any political system.

Therefore, at the top of the economic power of the world is the Federal Reserve and at the top of that is Ben Bernanke.

This is why I took a great deal of interest in reading the full text of his speech today. Much will be written about it but I want to tackle it from two points.

First, who is Ben Bernanke?

You can really see into his head from reading this speech. He is an academic who thinks he is smarter than everyone else which is why he is in the position he is in.

He thinks the key to monetary policy is to trick people into doing things that will hurt them in the end.

He believes the mal-investments he intends to push people and institutions into equals economic growth.

What surprises me so much about the investment community and the American public in general is that so many fail to understand that we live in a top down centralized economic system much more similar to China in more ways than people want to admit.

We look at how the government steers the economy in China and sneer. How are we so different right now?

As far as the speech itself, it confirms something I mentioned several weeks ago.

Banana Ben absolutely wants to do a massive QE2 program. The
only thing holding him back is gold is near an all time high.

What he wants is gold much lower and stocks much lower to give
him cover. Gold has not cooperated so he is in a bind.

He cannot print a massive amount of money with gold here and
stocks at 1055 because what happens if gold soars and stocks sell-
off in the days that follow such an announcement? What if the
response in the treasury market is not as desired?

He is scared to do it here and he is right to be scared because such
a reaction would be the end of the Fed right then and there.

The Fed will be gone anyway within a few years in my opinion but
it’s going to fight hard to survive and if you want to make money
in this market you need to understand that.

The most powerful institution in the world is fighting for its survival. Never forget that.

So what is he going to do? I believe that the Fed and government are doing a lot more than people think to manipulate all markets behind the scenes.

After all, they have publicly announced their manipulation in many other ways so does it make any sense whatsoever to assume they aren’t doing a plethora of other things behind the scenes?

Of course not.

I think that with the Fed in a bind they will accelerate and become ever more aggressive in behind the scenes games. This will make markets even more volatile and extraordinarily challenging.

This is financial war make no mistake about it.

The only way in my opinion to survive this is to buy all dips in
precious metals, agriculture and oil. It is in these three areas that
I expect to see the most price inflation as money eventually figures
out the end game.

The end game is more and more people will eventually wake up to
the fact that the markets are a hologram put in front of you by the
magicians at the Fed.

That what constitutes real wealth in the years ahead will be owning
food, energy and a means of exchange that will be accepted should
a black market economy arise as it has in virtually all nations at one
time or another throughout history.

In the end, the elites will be overthrown and a power vacuum will form.

The transition period will be extremely difficult as the elites will
fight their demise to the end. For you see, they care nothing for
you they care about their power and control.

Nevertheless, rulers have always only ruled by the will (or apathy)
of the people and when the people become overly taxed and abused
they always rebel.

The main thing to think about is what kind of society do we want to
rebuild from the ashes.

I am of the view that it must be a return to the Constitution and an elimination of central banking power and secrecy.

Let’s not fall for a demagogue or be pushed into a war when things are at their worst.

Have a great weekend,
Mike

http://www.zerohedge.com/article/elites-have-lost-right-rule