Introduction – What we are going to do here is look at a number of problems facing the USA. This article will be cynical. The idea is we are trying to illustrate the massive amount of problems they are facing so you can act accordingly.

Banks – Bank failures keep coming. People have become so conditioned to them they hardly pay attention anymore. The USA has had 29 bank failures this year so far.

Homes and Mortgages - One in every 159 USA homes received a foreclosure notice JUST in the first quarter of 2009. Shocking. There were over 800,000 foreclosures in the first quarter of 2009. March 2009 foreclosures were 46% higher than they were a year earlier. In Nevada during the first quarter of 2009 one in every 27 homes received a foreclosure notices.

Jobs Lost – Two million more jobs lost in 2009. In March alone 663,000 jobs lost. In the last 16 months 5.1 million jobs were lost, two thirds of those in the last five months. The government admits to 13 million unemployed. They tend to not count those whose unemployment benefits have run out and are still not working, those who gave up looking, and those who took part time work and those who retired early. The real figure is probably closer to 20 million or more. Obama is creating non-productive jobs in the public sector, government jobs. The private sector jobs are rapidly going away. Government jobs do not build an economy; they do not even sustain one. The real jobs are gone.

Police State – The constitution is basically being ignored by those working in the various governments that have taken an oath to enforce it. People have no rights any more. Courts no longer appoint a lawyer to those who cannot afford one. They ask the people to fill out an affidavit attesting to finances and sometimes they appoint one, sometimes not and in that case the judge is supposed to protect the rights of the defendant. Not kidding here, it is true.

The first conflict of interest is the judge is paid by the government. How is he supposed to favor a defendant against his employer? The system is flawed and now it is coming into its fullness. Now there are checkpoints inside the USA run by border patrol up to 100 miles inside the USA. Soon these checkpoints will be applied when you cross state lines and the no fly list will be enforced on people driving across state lines. The “border” checkpoints are applied to people traveling within the USA. Police search with impunity anything or anyone they want. All records Internet, bank, phone, etc are open to the government at all times.

The police have taken to using tasers on people who are reluctant to obey their verbal commands. These tasers are never used if the officer thinks his life is in jeopardy, for this they have guns. These devices are used to condition the public to blindly obey the police and rapidly with no questioning tolerated at all, zero tolerance. Tasers don’t save life; they actually kill a large amount of people each year yet they are being used (abused) by more and more police departments each month.

Crime – Crime is on the rise in the USA. Frauds are way up. One in every 31 adults is in the criminal justice system in the USA. This is the highest in the world and the true test of a police state. The streets are not safe. The people do not feel safe in their homes. Home alarm systems sales are soaring. People are buying firearms in record numbers. This year alone 1.5 billion rounds of personal ammunition were sold in the USA.

Who do you think the people are interested in protecting themselves against? Two groups – the criminals and their government. When the people feel this way as evidenced by the gun sales no government can continue. In the face of this Obama wants to push for more gun control. When the people are happy, content, the economy is good, the crime rate is low the governments never go off on a gun control campaign. The government is afraid of the people and the people are afraid of the government. This is a state that can only exist temporarily. Either the people get their freedom back through a constitutional government, secession or the government wins and the people will lose even more rights than they have now. Like what you might say.

The freedom to live where they want inside the USA, freedom of choices in healthcare, freedom to travel, freedom to communicate freely, freedom to have an uncensored internet, freedom to travel outside the country, freedom to have a convertible currency, freedom to own gold, and many other freedoms can be removed. What do you think it would take to get the government to go back to a constitutional government? Good question.

Intrinsically Flawed Political Practices – The USA was a republic. One could not vote unless one owned land. One could be free but not vote unless they owned some land. Why? The founding fathers said if we do not take this measure those with nothing would eventually vote in politicians to take our wealth from us and distribute it to them for nothing, no fair exchange of labor for funds. And what happened.

Obama is creating more public sector jobs while he is losing private sector jobs and no country can ever survive like this. The concept of corporate welfare seemed to have escaped the founding fathers but they did severely limit the government from taxing them. They also laid out rules for a gold and silver coined monetary supply to prevent the banks from owning everything they have. The government did away with this in 1913 with the Federal Reserve Act (many say this was an illegal act not correctly ratified by 2/3 of the states) and look what happened. The banks own everything and they ruined the country.

The politicians have a goal, which is to get elected and then reelected. They lie, cheat, steal, deceive and this is referred to as broken campaign promises. They get the poor people to vote for them through handouts. They get the wealthy corporations to support them through favorable laws, corporate welfare, contracts and other methods your mainstream media is never going to talk about because they are owned by these corporations. So they give out handouts for votes. Taxes go up. They print money like crazy that is worthless. The debt soars. They stifle business. New businesses do not start. Old businesses fail. Then they wind up where they are today printing more money to get votes. Problem is they have destroyed the core of the real businesses. The politicians would rather get reelected by destroying the economy instead of acting responsibly and losing the election. There are no fundamental changes coming from the politicians thus no end in sight until it collapses. It has to fail.

The Federal Reserve System – This is the core of the problem. The Federal Reserve System is a private bank owned by private owners who profit directly from this abomination created in 1913 at the same time the IRS was created which is just the collection arm of the Federal Reserve Bank. A brief explanation of this atrocity will explain why this is doomed to failure. The US Mint prints money for the Federal Reserve, which are called Federal Reserve notes but this only accounts for 3% of the money supply. The rest is computerized bookkeeping entries. Banks can loan out roughly 10 times what they have on deposit. They make money out of thin air. All the debts of the USA government, private companies and individual persons are owned by these private banks. It used to be that 20% of the tax dollars were used to pay the debt to this Federal Reserve, which winds up in the pockets of these private bankers controlling the Federal Reserve. With the recent increase in money supply this figure can go to 50% of the taxes collected. The Federal Reserve has never been audited, does not have to file a tax return and pays no taxes yet is a private corporation. Does Obama say hey lets go after the Federal Reserve and tax them to help the poor people? No he raises taxes instead. The Federal Reserve is a government-sanctioned tax haven for a select few of the elitists.

How Does the Federal Reserve Create the Damage – They buy $10,000 of US debt called treasury bills. The money the Federal Reserve uses to buy this debt is created out of thin air. They then loan this $10,000 to a bank and the bank has to pay the Federal Reserve the required fed funds interest rate. Banks refer to this as going to the fed window. The bank then loans this money to a borrower and is listed as an asset of the bank, the loan being the asset. Now the bank can make more loans using the ten times multiplier against this loan, which is listed as an asset in their flawed bookkeeping rules. This allows the banks to get interest on these loans.

More loans equals more assets and thus more loans. The more loans out there the more interest the Federal Reserve collects from the taxpayers and they call it things like national debt. It is basically impossible for the USA taxpayers to ever pay off the debt to the Federal Reserve. The banking system uses loans or debt as collateral instead of hard assets like silver and gold. This is why the constitution called for money to only be gold or silver coins so the government and the banks could not mess everything up. The Federal Reserve Bank has created slaves out of the people. How many people percentage wise in the USA understand the Federal Reserve. I would guess less than of 1%, probably closer to 1/4 of 1% best case. They do not teach this in the government run schools.

The sad thing is the money the Federal Reserve bankers got in their pockets has been used to buy buildings, land, houses, factories, airplanes, boats, cars, natural resources and governments. They converted these ill-gotten gains to hard assets that will always have value in any economic system. This is how they assure themselves the right to continue controlling things. They do know the Federal Reserve System has been milked dry and will fall apart. They do want to keep it running as long as they can. The Internet was their undoing. This is something they did not understand until it was too late. Now they are trying to pass laws to be able to shut the Internet off when they want to. There is encryption available on the Internet for voice, chat and email that they cannot break. This bothers them greatly.

What Happens If the States Quit the USA – This is brewing. The term is secession. The states are realizing that the federal government is going to take over if left unchecked. This is a threat to those in state government because they become irrelevant to the federal government. The states will be left to run the highways, sewers, bridges etc with no power, say or authority. They do not like this. They are all of a sudden sending warning signals to the federal government in the form of state bills affirming states rights and saying if the federal government over steps the powers granted to it in the constitution they will consider the federal government irrelevant, illegal and ignore them seceding from the union and forming a nation unto itself. This of course would mean voiding the Federal Reserve debt for their inhabitants.

The federal government is completely over stepping its rights and violating the rights of the states now and has been for years. The fear the states have is the federal government going to martial law and just basically telling the state governments they have become irrelevant, go home while they run everything. Obama is the right guy to have in the white house for this sort of movement. He is scared, confused, overwhelmed and bewildered; basically afraid to do anything except print money and play the I hope game. I hope I can keep it together long enough to get of this mess. Never happen, just a question of when it falls apart.

The problem is the other countries are not going to keep using the USD as a reserve currency forever. When they switch to something asset based then the US will have to buy those currency units with their low grade USD which is not asset based and the debt is ten times the USA assets. The USD will not buy many of these asset based units. This will result in hyperinflation. The USA will probably go to a more extreme police state since the standard of living will plummet to that of a third world nation fast. Think people not be able to afford hot water, air conditioning, cable TV, internet, cars, anything resembling adequate health care, beef, sea food, and even guns. Foreigners will move in to buy the cheap housing in the luxury areas that is still there. The women in the USA will be working as maids, men as gardeners, drivers, handymen, etc. Factories will popup and wages will be low, very low. People will learn to live on $100 a week. $200 a week will become low middle class and $2000 a month will be way up there. I am saying the today equivalent of the money value.

Remember housing prices are still in free fall so rents will be low. Some that have their home free and clear will keep it if they can pay the property taxes. When the cars fall apart they will not be able to afford new ones. When the currency goes to hyperinflation what is left of savings will be evaporated. Equity in houses will be greatly diminished if not completely gone. Stock market values will drop greatly. The USA labor force will be available for extremely cheap wages. USA laborers are a lot more educated and skilled that the workers found in most third world countries. That is the probable future for the USA if it does not break up into several nations. The people working for the government and on government support will not want the breakup because the handout is over for them if this happens. In this way Obama is smart in creating public sector jobs but this is only a tactic to delay the inevitable. If foreign countries will continue to treat the USD as a real currency and use it for their reserve currency in spite of how many times Obama increases the money supply, then the game works. And the chances of this are slim and none. You can only fool some of the people some of the time.

The Immigration Problem – The USA opened up the country to immigration during the 1960’s. They picked up 100,000,000 people legally and perhaps another 20,000,000 who are there illegally. These people came to the USA for a variety of reasons. Many of them came to exploit the USA. They paid as little in taxes as they could preferring to work off the books. They did a poor job of fitting in to mainstream America instead living in enclaves with each other from their respective countries. They did not grow up in America. Their children became dual nationals and spoke two or more languages and were multi-cultural. Their children were not really American; they were learning to exploit the system. Their children never went into the military and fought for the country. They were there to take and not give. Some of these people had it better in the USA but they viewed the USA as a sucker country to be exploited. The USA offered them free education, medical, welfare, disability, retirement and freedoms.

America used to be free a few decades ago. When people came to the USA in the late 1800’s and early 1900’s they came to work hard and have a better life. There were no handouts, no social programs. They were there to sweat and toil to have a free and better life. This was not the case with the immigrants coming in the last few decades. Sure some did believe in hard work and elevating themselves up the right way but the majority were there to exploit the system. These people eventually got the right to vote. What do they want from their politicians – a handout? Benefits, public sector jobs, the ability to use their mother tongue in the USA system etc. Eventually this too took its toll.

These new voters had little idea of what being an American was. This was not their land, their culture, their language, their race and often their religions were very foreign to the USA. They did not fit in and integrate. This further fed the desire to exploit the system. They asked what they could get out of the system as easily as possibly and had no interest in growing the country. They favored higher taxes for more handouts. They had little regard for the business community having not even a superficial appreciation for how a free economy functions. If there were no politicians offering these handouts for votes none of these people would ever be in the USA. There is no end in sight to this policy. They are talking about legitimatize the illegal aliens and getting them to be tax-paying voters. More handouts for votes. Problem is this has already gotten so far out of hand there is not more core businesses left to support these handouts. So what do they do? They keep printing money and make public sector jobs and these jobs pay taxes and this money goes to handouts. Does not work. They hit the brick wall. You can get into a recession by over spending but cannot spend your way out of one. End game has arrived.

What Should You Do – The first answer is to diversify your assets and do that outside of any police state. Hold several different currencies, gold, and real estate outside the USA. This only works if you do not get locked inside the USA. Judging by the way things are moving this will probably happen sooner than later. Leave now while you can. You can always come back later if it gets better.

State Secession - Pay attention to states secession. Many of you will want to run to any of the states that drop out of the union. Freedoms beyond your wildest dreams, constitutional governments, fair and honest courts, one language government, law and order, honest government, real money supply, minimal government, very low taxes, no red tape in government, no government handout programs, no handouts to foreign governments that are awful dictators, schools teaching the truth so this never happens again, etc. Such a government will cause businesses to thrive and prosper beyond your wildest dreams and fast too.

These states are going to restrict immigration. Montana will have no obligation to accept people from Texas or New York if they become their own nation. Smart people will be going now to the states getting ready to secede and get driver licenses, residencies now. Set up a few in the states most likely to drop out. Keep your money offshore and then when the states that have dropped out set up their money supply and banks then you can repatriate the money.

The USA as it was forty years ago will never ever return. The best hope is the states seceding from the union. There you can have a chance for a real free and prosperous life with some hard work. The people will remember the mess the USA became and take great pains to stop it from happening again. The people working in the public sector with jobs paying $90,000 a year in some cases that are just paper pushers will never want to leave what they have. For them it works. Well it won’t for long but they will never want to believe it will ever come to an end and they do not know enough to understand what is going on. These are bureaucrats that contribute nothing to anything. Those benefiting from the government handouts will not want anything to change.

The bottom line is the states leaving the union will not have these drains on their economy. What happens to these people is a good question. I expect the majority of them over time will realize it is time to get to work in a productive way or starve. I think some one who sat like a bump on a log in some government building pushing papers for 20 years with eight weeks vacation, 12 days sick leave, medical, dental, retirement, freedom from termination, no worries about how business is doing, and getting double or triple what their friends and neighbors make in a bad economy, well this person is always going to want to go back to the way things were. The problem with secession is the people in these states that benefit from the government programs and jobs do not want to leave the union, some states will at least attempt to leave and some probably will. Some states will probably group together and merge into new nations.

A lot of new immigrants will probably return to their home country or look elsewhere for a handout nation where the politicians sell handouts for votes. For secession Obama is the perfect President, could not ask for a better choice when it comes to breaking up the USA into individual nations. Let’s see what happens.

Montana has drawn a line in the sand with their new gun law. This allows companies in Montana to manufacture guns and sell them in Montana free of any federal controls. Guns are the thorn in the side of oppressive governments. Montana is hitting them where it hurts most to see what happens. Obama will more than likely do nothing not risking an encounter with Montana. Montana residents will grab a gun and enforce their rights and this attitude is not something Obama wants to tangle with. More states will follow suit with gun laws and other laws. Eventually they will get around to sacred cow tipping like taxes, coining their own money, setting up their own banks immune form the fed, restricting federal powers in their state etc. Georgia in a bill they passed said the federal government only has the right under the constitution to arrest people for Treason, Piracy and Slavery. Posse comitatus used to apply to federal agents. The original FBI agents did not carry guns, bet you did not know that.

Here’s a good question. Where will the tax police, agriculture police, border police, transportation police, park police, forest police, gun police, food and drug police, judges that do not follow the law etc. go to live if the USA breaks up? Not sure anyone would want them, tolerate having them, or trust them knowing their skill sets and training in these states that have seceded. Good question, huh.

-Aurelia Masterson, www.panamalaw.org