Lou Dobbs Interviews Representative Jim Jordan – FBI and DOJ Leadership Conspiring Against Donald Trump…

After the House Judiciary hearing today, Lou Dobbs debriefs Jim Jordan on the current status of recent revelations.  The current Office of Inspector General is providing daily information surrounding their years-long investigation into politicization of the FBI and DOJ by senior levels of Obama leadership withing the organization.

The bigger issue now surfacing is how Obama Administration officials within the Federal Bureau of Investigation and Dept of Justice have been caught using their investigative and legal authority to target the political campaign of Donald Trump.   Essentially the government was weaponized against a political opponent.

What is being brought to the surface is treasonous in its unlawfulness.

Because the larger ramifications are so consequential, it is now increasingly obvious the OIG is carefully providing sequenced information to the larger public, in small portions, enabling the public to digest the severity and scope.


Over the past two weeks we have seen releases from the IG that are building toward a much more consequential outcome.  The corruption is jaw-dropping. The very heart of the U.S. system of Law (DOJ) and Order (FBI) is now at risk.  The IG obviously understands the need for caution within these discoveries.

And Now We Know….

#1) …exactly why the White Hats are selectively preparing the larger U.S. electorate in advance of the 1.2 million documents which will outline the background of the Inspector General’s year-long investigation into the politicization of the FBI and DOJ.

The recent IG releases of information, Agent Strzok, Lisa Page, Bruce Ohr and Nellie Ohr; to include FBI Agent Peter Strzok’s text messages with FBI Lawyer Lisa Page; are strategically sequenced -and timed- in their public release.

The information drop today, which includes the text messages, reveals the bigger plot:

August 15, 2016, FBI Agent Strzok tells FBI Lawyer Lisa Page:

“I want to believe the path you threw out for consideration in Andy’s office that there’s no way he gets elected – but I’m afraid we can’t take that risk. It’s like an insurance policy in the unlikely event you die before you’re 40.”

“Andy’s office” would be FBI Deputy Director Andrew McCabe; and the appearance here is a clear outline to use the Steele Russian Dossier, as the foundation to the FISA warrant, which would be considered “an insurance policy” against candidate Donald Trump winning the presidency.

Yes, that would be a conspiracy; being discussed in Andrew McCabe’s office.  A few weeks later (October 2016), the FBI and DOJ did get the FISA warrant they were discussing in August 2016.

#2) …. And now we know why Andrew McCabe cancelled his scheduled appearance on Capitol Hill yesterday.  He didn’t have an “Ohr” problem, he had a larger conspiracy issue that he was likely to be questioned about, and someone tipped him off.  After McCabe’s  cancellation the IG office distributed the text messages to the full House.

#3) …. And now we know why Nellie Ohr, Fusion GPS contract employee and wife of Associate DOJ Deputy Bruce Ohr,  began using a HAM radio when the operation against candidate Donald Trump was conceived.

Nellie Ohr was hired by Fusion-GPS to specifically work on the Trump project and coordinate with MI6 Agent Christopher Steele. The Steele Dossier would later become the underlying evidence behind the application for the FISA warrant to wiretap Donald Trump and being electronic surveillance.

#4) ….And now we know, so far, on the FBI side of the conspiracy, the years-long IG investigation has captured FBI Agent Strzok, FBI Attorney Lisa Page, and FBI Deputy Director Andrew McCabe.

Likely the IG has also captured Bill Priestap, head of FBI counterintelligence and FBI Agent Strzok’s boss.  Priestap was the guy who Comey blamed for not informing congressional oversight, and Bill Priestap was also the guy who went to the White House present the information against NatSec Advisor Mike Flynn along with Sally Yates (DOJ).

We do not yet know if the IG has captured enough on FBI Director James Comey.

It would appear, at least so far, that Peter Strzok is willing to fall on his sword and take the blame for steering/manipulating the 2016 FBI investigation of Clinton’s emails; perhaps in an effort to protect James Comey.  However, will James Comey get caught in the Russian Conspiracy sting?  Too soon to tell.


What is obvious from the last 72 hours is that the Inspector General’s office is selectively, and strategically, letting out information that appears to be preparing the general public for a rather extensive, and troubling, bigger story.

Simultaneously, if we accept the IG investigation is ongoing, these releases would also be part of a strategy, the ending of the sting, to see how each of the participants responds. It is likely all of the identified plotters are being actively monitored to see how they are reacting.

Watch Video:


FBI Agent Peter Strozk Anti-Trump Messages Released To Media – However, The Key Question is Not Content…

The text messages between FBI Agent Peter Strozk and his mistress, FBI lawyer Lisa Page, have been released to both Fox News and CBS.  SEE HERE and SEE HERE.

The messages reflect a strong bias against President Trump. However, the bigger story is not the anti-Trump bias within the text communication, the BIGGER story is why the Department of Justice, Office of Inspector General (OIG), began even looking at Agent Peter Strozk’s communication in the first place.

Remember, the original mandate by the Inspector General’s office was initiated to review and discover any politicization of the FBI and/or DOJ officials.

After news broke of Strzok’s removal from investigative duty within the FBI counterintelligence unit, what the OIG responding statement said was for 11 months the Dept of Justice OIG office has been investigating the politicization within the DOJ and FBI and deciding if the actions, or lack of action, was driven by the political ideology of the participants therein:

(pdf Link)

In essence the IG began looking for any investigative issues that might show how political bias might have resulted in manipulated or changed investigative outcomes.  Potentially those outlined issues are brutally unethical, and most likely unlawful.  [Read the initiating IG office outline above because I’m going to reference it later] Emphasis:

“The January 2017 statement issued by the Department of Justice Office of the Inspector General (OIG) announcing its review of allegations regarding various actions of the Department of Justice and the Federal Bureau of Investigation in advance of the 2016 election stated that the OIG review would, among other things, consider whether certain underlying investigative decisions were based on improper considerations and that we also would include issues that might arise during the course of the review.

The OIG has been reviewing allegations involving communications between certain individuals, and will report its findings regarding those allegations promptly upon completion of the review of them.”

It was within this IG investigation that SOMETHING pointed the investigative agents in the direction of FBI Agent Peter Strzok.  What that something was and is remains an unknown variable; however, the outcome of the subsequent inquiry led to Agent Strzok being removed mid-summer from Special Counsel Robert Mueller’s team.

There was some precipitating event that led the IG to investigate the communication of FBI Agent Strzok.  That precipitating event or behavior is where the real story lies, and not in the downstream collection –and current release– of biased text messages between Strzok and his mistress FBI Attorney Lisa Page who worked for Deputy FBI Director Andrew McCabe.

Against the backdrop of current activity, and knowing there is a newly established special joint task force within the DOJ and FBI to identify leaks, we can reasonably speculate Agent Strzok was caught while the IG was investigating politicization, and the DOJ/FBI  leak task force was hunting intelligence “leakers“.

As Judicial Committee Representative Jim Jordan rightly outlined, Agent Strzok would not likely be removed because he had biased text messages with his mistress.  So long as that bias did not interfere with his work duty, there is no issue; and Strzok was not in a position of supervision over Lisa Page so they could encounter like rabbits to their black-hats desire.  However, if FBI Agent Strzok was a “leaker” to the media, or worse, well, that’s an entirely different kettle-o-fish.

Getting caught as a leaker is likely the reason Strzok was removed and reassigned to the HR post; not the bias.  The bias, writ large, is essentially a snipe hunt; it makes good media clicks, it feeds a good headline, but ultimately it’s a nothingburger.  The reports on this angle are flak and countermeasures.

However, Agent Strzok leaking information to the media; his changing the outcome of an FBI investigation into a political ally, Hillary Clinton; and his investigative involvement in the Trump Russia Conspiracy, via the Steele Dossier and FISA warrant, well, that’s the real issue evident here.

AUGUST 2017 – […] A former FBI agent who worked with Strzok on and off over several years in the bureau’s counterintelligence division said that Strzok’s move to HR means he has now been separated from counterintelligence work altogether.

[…]  Strzok’s departure also came one week after The Washington Post reported that Mueller had obtained a search warrant to raid the home of President Donald Trump’s former campaign chairman, Paul Manafort. The Post report cited “people familiar with the search,” prompting questions about whether anyone on Mueller’s team had leaked the existence of the search warrant to the Post. (link)

Which leads us to the next headline story that dovetails into this ideological weaponization by FBI/DOJ/DC officials leaking to the media.

Donald Trump Jr. has now written a letter of complaint to the House Rep. K. Michael Conaway, a Texas Republican who is heading the House Intelligence inquiry into Russian election interference.  Don Jr’s outline specifically focuses on the erroneous leak to CNN about the content of a received email; and requests an investigation into how the leak took place:

The Washington Times reports:

[…] Republicans suspect that the staff of Rep. Adam Schiff, California Democrat, leaked the erroneous “scoop” to CNN. They say his staff regularly leaks, with CNN being a favorite, with a spin that is not accurate.

Mr. Schiff, who is a big fan of the discredited Trump dossier, appeared on TV afterward. Mr. Futerfas said he misrepresented his client’s testimony.

[…] Mr. Futerfas’s implication is that the leakers let the story catch fire on social media and other venues before correcting it.

“Ranking Member Schiff and his staff do not leak classified or confidential information, and any disclosure of non-public information by the congressional committees undertaking investigations is singularly unhelpful,” Mr. Schiff said in a statement. “It is imperative that all investigations into Russia’s covert political interference campaign operate with appropriate discretion and refrain from publicizing information for short-sighted political gain.”  (read more)

Having some idea of how these DC investigative practices work, it is highly doubtful that Don Jr’s attorney self-initiated that complaint on his client’s behest.  There is a strong possibility the investigative unit, the new leak task-force, and/or the IG office, needs that initiating complaint in order to continue targeting the potential subjects of the leaks.

Given the recent activity surrounding the House Intelligence Committee, there is a better than good likelihood Minority Chairman Adam Schiff is one of the targets; and if the pattern exhibited within the Strzok investigation is followed, Schiff’s communications might also be monitored within the net as it is cast.

FBI Agent Peter Strzok’s former boss was Bill Priestap, FBI Asst. Director in charge of Counterintelligence.  [The same Bill Priestap James Comey stated was the person who decided not to tell congressional oversight of the investigation]  Bill Priestap’s boss was FBI Deputy Director Andrew McCabe. McCabe was also Lisa Page’s boss. Directly above McCabe in the chain-of-command was FBI Director James Comey.

Notice how things are seeming to gain speed within the daily/weekly discovery cycles?

Bitcoin To Be or Not to Be?

QUESTION: Hi Martin,
despite the Bitcoin fanboys arguing that Bitcoin is untouchable by governments, would you agree that once governments, in particular, the Chinese government, make it unlawful to own Bitcoins, the additional introduction of proceeds-of-crime legislation would make it extremely difficult, if not impossible, to use Bitcoins to acquire assets, and dealing a permanent blow to Bitcoins’ value? At some point, Bitcoin owners need to be able to interface with the real market to buy assets, and that’s where the government can catch them and ask them to prove how an asset was acquired.

Will you be giving a forecast on Bitcoin’s price at some point?

Keep up the great work.


ANSWER: Bitcoin has replaced gold as the hot anti-establishment medium which has been gaining momentum. In light of India canceling their currency, there is a growing position against government currencies. This is certainly part of the entire shift from a Public to a Private Wave on the Economic Confidence Model. The overall confidence in government has been declining significantly on economic and political levels – i.e. the election of Trump, BREXIT, and Merkel collapsing to 32.5%.

In a purely economic sense, Bitcoin is really the medium of exchange in a barter situation. That is what BARTER was all about. It was some object that was recognized as acceptable among a group of traders so it becomes the medium of exchange. The problem with Bitcoin is that it is limited and therefore does not represent a true currency that many expect to compete against the government when there is not enough to go around for everyday use among the people.

Historically, when the government of Japan abused its power to issue money, people simply refused to accept it and used Chinese coins and bags of rice. Japan lost the power to issue its own money for 600 years. Even in Zimbabwe, the hyperinflation resulted in people using the currencies of other countries with the U.S. dollar at the top of the list. The same trend unfolded during the hyperinflation of Germany. There is a long historical record of people using the currencies of anyone other than their home government. We see this in ancient times as well. India, back in the day, struck imitation gold coins of the Roman Empire. They were often even overweight. Nonetheless, the image of a Roman coin was more trusted than a local issue.

Much of the entire problem with Bitcoin stems from the fact that it is in a very gray area. Is it truly a currency or an investment product like a stock? Or is it just a commodity serving as a medium of exchange in a barter situation? The tax implications are strikingly different for each.

If we look at foreign currency, the way this is handled is significantly different from shares. Any transaction under $600 is exempt from taxation due to fluctuation gains or losses. This is typically in play for those who travel on vacation. Exceed a transaction of $600 and you are liable to report that transaction gain to the government for taxation. Profits are theirs and losses are yours.

However, when you are dealing with a currency, then you must always be aware of the crime known as Structuring which is the act of parceling what would otherwise be a large financial transaction into a series of smaller transactions to avoid scrutiny by regulators or law enforcement. In other words, you are going to make a transaction of say $35,000. To avoid the bank reporting that transaction, you withdraw $9,500, $9,500, $9,500, and $6,500. You beat the regulation and that is a crime for which the government commonly throws people in prison and confiscates all the money involved.

Dennis Hastert 2

Dennis Hastert, the former Speaker of the House, was indicted by a grand jury on charges of structuring and lying to the FBI. Back in 2014, a Hartford, Connecticut man was sentenced to 18 months in prison for structuring $48,195 to buy a Corvette and a 2012 BMW 650i. They took the money and the cars. Also, a doctor from Georgia was sentenced to 36 months in prison and ordered to forfeit $870,238 which he engaged in Structuring to beat the reporting. This is far more common than people suspect. Retail stores accepting cash often have problems and must explain their operation to the bank to avoid the bank reporting them as a Structuring violation.

Under stock investing, your stockbroker issues you an IRS report under the 1099-B form which accounts all your gains and losses. This is a major difference between currency and legitimate stock market investments. Under currency, you must report your gains and losses. As I reported previously, I retired from making-markets in precious metals because the IRS declare me to be a bank and thus a financial institution. In the case of the summons against Coinbase users, the Department of Justice demanded the turnover of everyone. There are no rules so those people will be audited.

The IRS can simply make a rule and that will be the end of the issue. Congress has introduced the Cryptocurrency Tax Fairness Act which requires the Treasury Department to issue guidelines for informational reporting on digital currency transactions for which capital gains is due. The agency will make the rules and those rules are sufficient as laws that carry criminal penalties. The interpretation belongs entirely to them and the courts will defer to them as the expert. So much for courts being independent checks against arbitrary government.

The critical issue will be what does the IRS do? Will they declare everyone who mines Bitcoin is a financial institution and must then report every transaction of $10,000 or more and suspected s as financial institutions? The regulatory burden will severely curtail those involved with Bitcoin.

All of that said, what if Bitcoin is just a commodity? Normally, if I have an apple and I trade it with you for an orange, that is not a cognizable transaction for tax purposes. The problem with Bitcoin is its marketing as a currency. It may really just be a commodity for all practical purposes economically speaking. However, because it is presented as a cryptocurrency, it may be a duck that quakes as a commodity since it is NOT “legal tender” and acceptable by any government for taxes, but, if they call it a pig, it is a pig for tax purposes.

Bitcoin is included in Socrates basic level right now. The Futures contract on the CBOE will make prices much more tangible since people can put up prints with just one Bitcoin trading at $17,000.

The futures contract will for the first time put a legitimate price mechanism that is not as easily susceptible to fraud and market manipulations as cash markets are. Just go watch the Big Short. The banks would not make a real market until then off-loaded their own risks. That is why CDOs were regulated to go through a clearinghouse – no more off-exchange quotes. This advance for Bitcoin will be the first MAJOR step in really making it a viable market. Up until now, the quotes are always subject to fraud. It is easy to put up prints. Then everyone things all their Bitcoin is suddenly worth that new high price. Let everyone say SELL, and watch the price collapse

EU To Restrict Movement of Cash

The EU is now developing strict rules for carrying cash when traveling to non-European countries and returning to Europe. The revision of the First Cash Control Regulation from 2005, which stipulated that EU citizens should register cash in excess of € 10,000 when leaving the EU or when returning to the customs authorities have to, is what is under review. They want to lower the number and include gold, gemstones, and cash debit cards.

Interestingly, cryptocurrencies are not to be regarded as cash. Why? They are not sure how to detect them. The EU explanation reads: “Despite the high risk emanating from cryptocurrencies like Bitcoin, these are not added to the cash. The reason for this is that the customs authorities lack the technical means to discover cryptocurrencies. “

The customs authorities can now seize any amount of cash less than € 10,000 if they suspect that the money is somehow involved in any criminal activity. This is authorizing the Civil Asset Forfeiture that has been so profitable to the United States. Hence, the EU does not clearly define what suspicion is required to classify as a possible criminal activity. That will be avoiding taxes.

The EU is also extending the new rules to any freight shipment involving cash. Already, one cannot send cash by mail. This is now freight shipments. A friend used the service where you can send your baggage ahead of you for a trip. He was called down and had to remove $2.75 cents that were in a suitcase headed back to London. So there is no amount too small.

The purpose of the rules is now openly being justified to fight against tax evasion, along with moonlighting and terror financing. The government clearly understands that cash is the only way for citizens to protect their savings from access by states and banks and any special levies or wealth taxes. Closing this door merely opens the door to cash investment turning to movable assets particularly shares.

Wife of DOJ Deputy Was Fusion GPS Employee, CIA Research Aid, and Applied for HAM Radio License Month After Contracting MI6 Agent Christopher Steele…

Sometimes a ‘Conspiracy Theory’ is not just a theory…

Department of Justice Assoc. Deputy Attorney General Bruce G Ohr was demoted because he had working relationships with dossier author Christopher Steele and Fusion GPS; and -more importantly or perhaps ‘conveniently’- according to James Rosen, Bruce Ohr did not reveal his October 2016 contacts with MI6 agent Steele or Glenn Simpson (Fusion-GPS) to DOJ leadership. (LINK)

(L-R) Nellie H. Ohr (Fusion GPS) and Bruce G Ohr (DOJ)

However, the ongoing Dossier story gets far more intriguing as it is now discovered that Bruce G Ohr’s wife, Nellie H. Ohr, actually worked for Fusion GPS and likely helped guide/script the Russian Dossier. (Link)

Contacted by Fox News, investigators for the House Permanent Select Committee on Intelligence (HPSCI) confirmed that Nellie H. Ohr, wife of the demoted official, Bruce G. Ohr, worked for the opposition research firm last year. The precise nature of Mrs. Ohr’s duties – including whether she worked on the dossier – remains unclear but a review of her published works available online reveals Mrs. Ohr has written extensively on Russia-related subjects. HPSCI staff confirmed to Fox News that she was paid by Fusion GPS through the summer and fall of 2016.

But wait, it doesn’t stop there… Mrs. Nellie Ohr was not only a Fusion GPS contracted employee, but she was also part of the CIA’s Open Source Works, in Washington DC (link)

Both Mr. and Mrs Ohr worked on a collaborative group project surrounding International Organized Crime. (pdf here) Page #30 Screen Shot Below

But wait, it gets even better.

A month after Hillary Clinton hired Fusion GPS (April 2016) to sub-contract retired British MI6 agent Christopher Steele to write the opposition research report “the Trump Russia Dossier”, Fusion GPS employee Nellie Ohr applied for a HAM radio license (May 23rd 2016); a communication tool that would allow Nellie Ohr and Christopher Steele the ability to communicate outside the normal risk of communication intercepts.

Keeping in mind, both Bruce and Nellie Ohr’s subject matter skill-set within the DOJ would provide them with a comprehensive understanding of how to network and communicate with international actors outside the traditional risk of communication intercepts. In short, Mrs. Nelli Ohr would know that using HAM radio frequencies would be a way to avoid the risk of U.S. intelligence intercepts on her communications.

The Clinton Campaign hired Fusion GPS in April 2016.  Fusion GPS then sub-contracted retired British Intel MI6 agent Christopher Steele to write the Russian Dossier. A month later, May 23rd 2016, Fusion GPS employee Nellie Ohr gets HAM radio license.

So are we to believe it’s COINCIDENTAL?  All of a sudden, a 60(ish)-year-old woman decides to use a HAM radio the month after contracting with Christopher Steele for a Russian opposition research dossier on Donald Trump?


The more plausible scenario is MI6 Agent Christopher Steele and Mrs. Nellie Ohr knew any communication with foreign sources/actors could be easily monitored; and this need for communication was, most likely, going to lead to an organized operation where an FBI counterintelligence operation would exist -per Agent Peter Strzok- and, due to the subject matter being constructed, confidential communication would be required.

One way to ensure secure communications with parties external to the U.S. would be the use of HAM radio operations.  You simply establish the frequency to use, and the time of the conversation, and presto. That’s it. “Red-Dog-One to Red-Dog-Two, come in?” etc.

Fortunately, this FCC license application now becomes evidence of an intent to subvert traditional communications intercepts… which, when combined with the other growing trails of evidence showing Fusion GPS schemes around the manufacturing of the Dossier, gets more interesting.

Mrs. Nellie Ohr, a Fusion GPS contracted employee, gets HAM radio license May 2016.

Following along the timeline:

In June/July 2016 an initial DOJ FISA request is denied. This is simultaneous to FBI agent Strzok direct contact with Christopher Steele and the preliminary draft of the Russian dossier.

Then in August 2016, Christopher Steele goes to Sir Andrew Wood to ask him to act as a go-between to reach Senator John McCain. [Trying to give his dossier credibility]

Meanwhile throughout July, August and Sept 2016 Fusion GPS is paying journalists (NYT, ABC, NBC, Washington Post and Mother Jones, etc.) to listen to Christopher Steele and simultaneously shopping the dossier to them.

Soon thereafter, October 2016 – The Obama administration, through FBI Agent Peter Strzok and DOJ Deputy Bruce Ohr, submits a new, more narrow application to the FISA court, now focused on a computer server in Trump Tower suspected of links to Russian banks. The second FISA application is accepted and a surveillance warrant is granted.

Note the date of this tweet:

Simultaneously in October 2016 – Through the media in the past week we discover – Associate DOJ Deputy AG Bruce G Ohr, Nellie’s husband, is in direct contact with Christopher Steele, and the full dossier, along with secret meetings with Fusion GPS co-founder Glenn Simpson.


Again, Timeline Recap:

♦April ’16 Clinton hires Fusion GPS
♦April ’16 Fusion GPS hires Christopher Steele
♦May ’16 Nellie Ohr gets HAM radio license.
♦June/July ’16 FBI Agent Strzok meets w/ Steele
♦June ’16 DOJ FISA request denied.
♦July ’16 FBI counterintelligence operation begins
♦Oct. ’16 Peter Strzok and Bruce Ohr meet w/ Christopher Steele
♦Oct. ’16 FISA request granted.

Last week U.S. District Court Judge Rudolph Contreras, the judge that appears to have granted Oct ’16 FISA request, is mysteriously recused *AFTER* accepting Mike Flynn plea in the first hearing.

No explanation is given for the recusal or why Judge Contreras waited until after the initial plea hearing.

It would be EXPLOSIVE if it turned out the October 2016 FISA warrant was gained by deception, misleading/manipulated information, or fraud as a result of the Russian Dossier; and exponentially more explosive if the dossier was -in part- organized by the wife of an investigative member of the DOJ who was applying for the FISA warrant; the same warrant that led to the wiretapping and surveillance of the Trump campaign and General Flynn, and was authorized by FISA Court Judge Contreras.

Representative Jim Jordan establishes “The Predicate“:


Representative Jim Jordan is “convinced the Steele Dossier was the underlying evidence for the October 2016 FISA warrant”. Part II:


CTH absolutely concurs with Jim Jordan’s outline and subsequent belief. All evidence points in only one direction. No evidence goes in any other direction.

The Steele dossier is a product aided by Nellie Ohr that underpinned the FISA application. The FISA application was a product constructed by FBI agent Strzok and DOJ Deputy Bruce Ohr under the authority granted to them by senior FBI and DOJ leadership.

Remember, as Director Chris Wray stated this past week, the FBI Director would be personally responsible for signing off on the October 2016 FISA application. In October 2016 that FBI Director was James Comey.

Twitter Thread for those who share via Twitter is also HERE.

Failed Attempts to Overvalue Money

On July 12, 1722, William Wood (1671–1730), who was a hardware manufacturer, ironmaster, and mintmaster, received a contract from the British Crown to strike an issue of Irish coinage from 1722 to 1724. He also struck the ‘Rosa Americana’ coins of British America during the same period. Wood’s coinage was extremely unpopular in Ireland for being overvalued in monetary value compared to the intrinsic metal value. It was seen as the King attempting to create money from nothing or fiat despite the fact they were coins.

The British coins minted for Ireland were recalled and exported to the American colonies. Wood was also granted a patent to mint 300 tons of coppers for the North American Colonies over a 14-year period for an annual fee to the Crown of £300.149. He produced the “Rosa Americana” coinage which was very attractive, but they were an alloy of 75% brass, 20% tutenague, 5% silver. One pound of the alloy was to produce 120 halfpence, which was a substantial profit of about doubling his money. The obverse depicted the laureated head of George I, while a Tudor rose with the inscription ROSA AMERICANA, UTILE DULCI was on the reverse.

In response to the Wood contract by the British Crown, Massachusetts issued small change bills to compete with Wood’s Rosa Americana coinages being introduced into New England. They issued in 1722 this Hexagonal Three Pence, as well as a two and one pence paper note. This issue of small change paper notes was authorized in June 1722. These geometrically shaped parchment notes were clearly authorized in Massachusetts in response to the Rosa Americana flood of coins from Britain.

Wood’s effort was a failure as was his Hibernia series in Ireland. Their lightweight and overvaluation rendered them unacceptable as money by the American colonists as well as the Irish. Therefore, the rejection of Wood’s underweight coinage even took place during the extreme shortage of small change shortage that created a real crisis economically. The failure of the Rosa Americana series to be accepted by the Colonists is why so many of these coins remain in uncirculated condition today.

Shortly before his death in 1730, Wood proposed to the Board of Trade that he mint coins in gold and silver for the colonies at 75% of the sterling rate once again a scheme to overvalue the coinage. This scheme was rejected by the Crown based upon his previous failures.

Dow from the A$ Viewpoint

QUESTION: Hi Martin,
I was unable to attend your WEC in Orlando but purchased it to view remotely. I’ve read the vertical market report and look forward to watching the video of the even when its ready. My only question is with regard to currency. With my currency in AUD I realise the place to be is in the DOW however with you’re previous reports of Australia being one of the few countries with Super Annuation and the fact longer term you have predicted the AUD to surpass the USD will investing in the DOW be detrimental on a purely currency basis or will the USD rally against all currencies before many years ahead seeing the AUD rally against it? Is the Aussie Dollar included when you say all other currencies etc or is it unique like you’ve mentioned before in a 2010 down under report?
Thanks for all the effort you go to helping us all navigate through these interesting times.

ANSWER: The US$ has been moving higher against the A$ since 2011. It has NOT reached the Yearly Bullish Reversal which stands at 14252 on the cash. The technical resistance stands at the 160 and 170 levels. There is no indication that the US$ will make all-time record highs against the A$ just yet.  Exceeding that 14250 area will ring the alarm bell for the A$.

Here are the technicals for the Dow in A$. Here we have elected four Yearly Bullish Reversals whereas, in the currency, we have not elected any so far. This makes the 14252 number very important.

Why the Dollar is not Fiat

QUESTION: You have said that coins were still fiat and not tangible hard money. Nobody else has said that. Can you support that statement?


ANSWER: Of course. During the American Colonial period, there was a shortage of silver in particular in Britain. They impose restrictions on what coins could be used to pay Americans for anything. That restriction was imposed on silver and gold. Therefore, payment to Americans from Britain was always in copper coins. If Americans wanted to buy something from Britain, it was typically demanded in silver or gold. This was one of the reasons for the American Revolution.

Because of these restrictions, the monetary value of copper coins was twice its actual metal content. All governments produced coins ONLY at a profit, which is called the seignorage. Here is a table of the weight and metal content of a U.S. penny. Not only has it declined in weight, in 1982 it ceased being a copper-based coin. The penny today is zinc copper plated to maintain the appearance. The price of copper became worth more than 1 cent and that was not profitable. In May 2012 Canada stopped minting one-cent coins altogether became the metal content exceeded its value ending a tradition since 1858 when Canada established its own currency.

Even in ancient Roman times, the mines belonged to the government. They financed their spending by producing new coinage every year. That covered about 80% of their budget. They set the value of the coin which was ALWAYS over the intrinsic metal content. So no matter what people you look at, the coinage value was ALWAYS greater than its pure metal content. Even Bretton Woods fixed the price of gold at $35 per ounce in 1944. They failed to raise that value and it eventually caused the monetary system to collapse in 1971. That was the very same result we see in the penny as well as the debasement in the Roman Empire of the silver coinage.

Therefore, anyone who tells you that ONLY paper money is fiat, they have absolutely no idea of the monetary system and how it has evolved with time. ALL money, when fixed in value by the government, is fiat. Even the infamous Soros attack on the British pound was based upon Britain trying to “fix” the pound at a high rate within the European Rate Mechanism at a high rate for pride.

Only a floating exchange rate system ends the fiat. So yes – that means as long as the “paper” dollar floats in value on world markets, it is not actually fiat and more than Bitcoin trading. The term “fiat money” means an arbitrary order or decree declaring the value to be fixed. The dollar was “fiat” when it was arbitrarily established by Roosevelt at $35 to the ounce of gold.

Today. as long as a currency floats, it is not an arbitrary declaration of its value by the government and is therefore not “fiat” as popularly stated by the hard money crew. This mythical idea that a currency should be a store of wealth has NEVER existed even once in history from one decade to the next. Those who argue for such a system are incapable of comprehending the business cycle and like Karl Marx want to freeze the system because they cannot cope with it.

EU Commission v Eurogroup

Most people do not understand that there is the Eurogroup, which is an informal body of finance ministers from the Eurozone member states that are intended to discuss matters relating to their countries’ common responsibilities related to the Euro.  They do not keep any minutes so nothing emerges with respect to policy. There is now a clash building between this Eurogroup and that of the European Commission. The Eurogroup will most likely oppose the EU Commission’s plans for an EU finance minister. This, of course, is one more step toward federalizing Europe. The view in Brussels is that their dream project is collapsing. The answer is not more freedom, but to centralize power to prevent the collapse of the Euro.

The Commission wants to impose its own finance minister over the Eurogroup and in turn, the Eurogroup will insist on having its own presidency. There is a rising belief within the Eurogroup that it should delineate the role of the Eurogroup from the role of the Commission. They see the Commission as attempting to grab more power unto itself.

Its main task is to ensure close coordination of economic policies among the Eurozone member states and promote conditions for stronger economic growth. This was seen as a critical element to maintain stability in the Eurozone as a whole.

However, as I have made clear before, the failure of the euro has been due to the refusal to consolidate the debts. Then you would have had a clean federal European government and each member state would then have its own budget that would not be dependent upon the federal government. Now because of this refusal to consolidate the debts from the outset, we have the idea of creating an EU Finance Minister who will then have dictatorial powers over Eurozone members.

This is going far beyond the United States of Europe, but a single government eliminating the sovereignty of individual member states. The USA has a federal government with its debt and 50 states which are all on their own. The Feds are not impacted by the budget of an individual state whereas the structure of the Euro is dependent upon each state. This is also why the EU opposes all separatist movements. The design is seriously flawed.

The Eurogroup exists without any real power collectively. There is no transparency because it had no real power. The group was effectively mandated by governments to conduct financial operations but without any formal means to carry any directive out. The finance ministers have acted with no more success than the ECB. The European austerity policy has been a huge mistake and this has been imposed upon the whole by Germany.