The Nature of Deception, Usury, and ETFs

(Witness this Rant!)

Silver Stock Report

by Jason Hommel, July 16th, 2009

When I first began studying Bible Prophecy just over 10 years ago, I was curious about the fact that there are False Prophets, or false interpretations.  What's interesting is that false prophets are deceived, and they deceive their followers.  And what's amazing is that those who are deceived don't know they are deceived.  But what's more, it's truly frightening to realize that God Himself can deceive the false prophets! 

1 Kings 22:23 Now therefore, behold, the LORD hath put a lying spirit in the mouth of all these thy prophets, and the LORD hath spoken evil concerning thee.

2 Thess 2:11 And for this cause God shall send them strong delusion, that they should believe a lie:

So here's the truly scary thought if you believe God is all powerful:  If God has it in for you to be deceived, how can you fight against God Himself?

Fortunately, God tells you how you can learn to tell between right and wrong.  God actually wants you to know the difference!  God gave mankind the law.  Not only that, but God gave mankind many prophets to interpret and explain the law.

One of the sets of laws that God's people (the Israelites) seemed to continue to violate over and over again were the laws regarding debt and charging interest on loans, (called usury).  They were not to loan at usury to their fellow people, nor to the stranger living among them, and they were to forgive, forget, and wipe out all loans (and set free all slaves) every 7 years, and every 50 years.

I find it interesting to note that the "indentured servants" who helped to colonize America nearly 300-400 years ago only served 7 years, and that about 50 years ago, home mortgages used to be limited to 7 years, and that a few years ago a person used to be able to declare bankruptcy once every 7 years.

The prophets compared the practice of usury to thievery, extortion, violence, slavery, etc.  Why?  Because if loans are not paid, usually the lenders try to resort to force, police force, government force, to enforce such contracts at the point of force, such as, for example, to evict people from homes, or for not paying taxes. 

This is where "Biblical Economics" differs from the Austrian School, which holds contracts as important.  I see contracts as violations of the Biblical commandments to make no oaths (James 5:12), and no treaties with foreign nations (Deuteronomy 7:1-7).

"Austrian School economists advocate the strict enforcement of voluntary contractual agreements between economic agents, and advocate the smallest possible imposition of coercive force (especially government-imposed coercive force) on voluntary commercial transactions."

In truth, fraudulent contracts should not be valid.  Contracts without full disclosure are not valid.  Contracts entered into under duress are not valid.  Illegal contracts are not valid. 

It is mathematically certain that the people cannot pay back more gold than exists (that would be a fraudulent contract) or is being mined on earth, and gold is only being mined out of the earth at a rate of an annual increase of 2%!

Many of my less educated readers have accused me of "putting blind faith in an old dusty book that has been re-written too many times to count".  Unfortunately for them, those false accusers don't seem to realize that I understand a little bit about the math of compound interest.

Compound interest teaches us that at 2.5% interest, lenders would own all the atoms of the universe in a few thousand years.  And at 6% interest, they would own all the earth in only a few hundred, or less, which leads to unpayable debts, and thus slavery.

One way to prevent such slavery is to use silver and gold as money.  Gold is not debt-money, it's real money.

The Russian President once again promotes the honest money of gold! 

See gold, as the new currency:

G-8 leaders to be given symbolic gold coins

Critics of the Biblical warnings against debt and usury (and those who are deceived or taught in government schools that debt is ok, or just about anyone who grew up during this era of monetary fraud) don't seem to realize that in the USA, the nation had unpayable "dollar" debts since just after WWII, when the government owed about $250 billion (payable in gold at $35/oz., which was 7.1 billion oz.), which was more gold than existed on earth, which, even today, is only 5 billion oz.!  That's why a "temporary emergency income tax" was levied on the masses of the American People after WWII, and has never been lifted.

It's not the "gold standard" that failed.  It was that gold debts could not be paid, as they printed up too many paper dollars (gold debts) in the 1920's prior to the depression, and were never properly rejected!

The nature of debt at 6% interest on a large scale in large amounts over a few generations, is that unless it is recognized, and repudiated, and declared null and void through bankruptcy or default, it is like a black hole that sucks in all the wealth and productivity of an entire nation, or entire world.  It leads inevitably to totalitarianism, or a dictatorial World Government that will enslave everyone, unless that is recognized, and rejected, by a people that turn to God for understanding and salvation. 

Government can't save you from oppressive government! 

Only God's economic prescription of debt forgiveness (bankruptcy), and God's provision of silver & gold, and free markets (thou shalt not steal) can help.

No nation can invade a nation of gun owners, so a government and an army is totally unnecessary for protection.  But gun owners can be enslaved over generations if they don't know about usury!

Even the nature of fractional reserve banking has continually changed as the black hole of debt has gotten bigger.  Even the banks have gotten "sucked in" to the black hole, probably because they are the closest ones to it.  Fractional reserve requirements have gotten less and less, and are close to zero, and are actually zero for bank branches with less than $10.3 million on deposit.


Reserve Requirements

Net transaction accounts:                           Percentage of liabilities            Effective date
     $0 to $10.3 million                                   0%                                         1-01-09
More than $10.3 million to $44.4 million        3%                                        1-01-09
More than $44.4 million                                10%                                       1-01-09

This shows that the rules for the banks are so lax, that it's no wonder banks are bankrupt!  It's not me saying it.  It's the Federal Reserve!

I suspect that the reason that there are so many of the same bank branches nearby is not for convenience of the customers, but so that the banks can keep their reserve requirements down to less than 3%! 

The nature of deception is that anytime you learn anything new, you were either totally ignorant of the subject, or you had wrong ideas about the subject, and were thus deceived. 


I know I'm deceived about the nature of money, because I live in the age of fraudulent money, and thus, my thinking about money is thus polluted by the age in which I live, and also because I'm continuing to learn new things about the gold and silver markets all the time--even after 10 years of writing!

Just this month, I've had two new insights, which is a lot for one month:

1.  From:

"My main point is that anyone can exchange their paper money, for silver or gold, on much better terms today, at much less premiums today, than during the vast majority of the time that silver "officially" backed the currency!

The fallacy of thought was that silver could be bought for "zero premium" when it was money, while today, you have to pay an "unfair 5-10%".  The truth is that when silver was money, government distortions and monopoly pricing created 400% premiums, also called "Seigniorage"."

2.  From

"Essentially, holding dollars means you are lending to the Fed at zero interest, in return for the privilege of being taxed!"

How else can I come up with new insights that I've not read anywhere else, unless I was first deceived about something and now I'm not?  I wonder what else I'll be learning in the next few months!

The problem with most people is that they don't seek to learn anything new.  They actively try to protect themselves from deception by rejecting the new, and holding on to the false ideas they think they know.  How sad!

But "rejecting the new" is not the way to protect against deception!  We are to protect ourselves against deception by testing out what we know, and holding on to what is true, and to establish truth by the testimony of two or three reliable witnesses. 

In science, they call it "peer review", and experiments should be able to be duplicated by other people who should get similar results! 

In finance, truth is established by an independent third party audit!

America's gold reserves have not been audited since the 1960's, and the Federal Reserve has NEVER been audited since it was founded in 1913.

Ron Paul's movement to audit the Fed is gaining ground.  This surprised me, since the Bible says that the borrower is the servant to the lender.  Perhaps I wrongly applied that concept, thinking that the Fed is the lender, and since the nation and people at large are mostly borrowers, we thus don't have power over the Fed.

However, if we are not in debt, if we actually have assets, and if we hold dollars or bonds, we are the lender to the FED!  Ah, an application of my new insight!  See, we control the Fed, we enable the Fed, we are superior to the Fed, when we hold their dollars, excuse me, "Federal Reserve Notes".

See, in the monetary age in which we live, it is usually debtors who write nasty things about the Fed.  It is less often that creditors complain.  Creditors should not complain, since they already have power over the Fed, and they can exercise that power at any time by merely selling bonds or dollars for gold or silver.  Why should anyone complain about a mere servant?  Just fire them.  Simple.  Easy. 

Perhaps the most frequently quoted quote that is sent to me these days (often in signature files) is that "For evil to triumph, all that is needed is for good men to do nothing"

I object.  I believe for evil to triumph, good men must be deceived into actively supporting evil.  The active support of evil (holding dollars) is not "doing nothing".  It's actually quite something to hold papers with numbers on them, thinking it to be valuable.  Quite a deception that is, and it lends active support to the deception.

So that's what we do when we hold dollars.  We enable the Fed.  Kind of like giving welfare money to a crack whore, we enable the Fed to continue their evil when we hold dollars or bonds. 

If we sell dollars or bonds for silver or gold, the Fed loses its power.

I believe if Congress tries to audit the Fed, the Fed may close its doors.  What is on the books as assets?  The United States Government?  You and me?  All of our property?  It's been said.  The math alone says that the Fed could consider it all belongs to them.  But we are not "overt slaves" because foreclosure is too difficult, and might require physical confrontations.  What are they going to do, get 10 million Chinese men to enslave us outright?  There would be a revolution!

So here's today's new insight:

I used to think of the Fed as the lender of last resort; as that's what they call themselves.  I suppose I forgot they are liars.

But the Government has now given pledges to support bankrupt entities and government programs to the tune of $80 trillion, as there was at least $70 trillion of "unfunded liabilities" and at least $10 trillion in recent bail out pledges! 

So the Fed is now the backer, or potential payer, of those pledges.  Thus, it's the Fed who has debts that they cannot pay, the $80 trillion.  Perhaps the Fed owns the U.S. government, but the U.S. government has made too many promises that cannot be paid without destroying the currency, which would destroy the very important money-printing monopoly that the Fed has!  How ironic. 

The Fed was originally set up as that "lender of last resort".  But in Biblical terms, they are the one who makes "surety for a loan", they make good the loans of the big banks.  But what is the end result of one who pledges to be surety for loans that cannot be paid?  They come to ruin.

Proverbs 6:1 My son, if you become surety for your friend, If you have shaken hands in pledge for a stranger,
2 You are snared by the words of your mouth; You are taken by the words of your mouth.

Maybe the "black hole" analogy was not complete.  Maybe the kinds of debt levels the Fed has today are unsustainable and unstable, like a theoretical black hole that is shrinking faster by giving off more gamma rays and x-rays than it can accumulate enough mass to stay stable.

That's what happens in hyperinflation.  They need to print up more and more currency, but the value of the currency is being destroyed faster than the gains from printing more, so it creates an unstoppable "virtuous" cycle of fraudulent currency destruction.

Gold in your possession does not need an audit.  Either you have it, or you don't.  It's up to you to count it.

When other people hold gold for you, you need to have third parties count it for you, in an independent audit.

The ETFs do not allow any such audits. 

I don't need to prove that the ETFs are a fraud.  They need to prove they are true, and by the appropriate standard of third party review, they cannot. 

The nature of fraud is that it is a lie.  Liars often resort to lies to protect their lies, and have even been known to pay money to false witnesses to gain an appearance of credibility.

I've read that Comex contracts can be fulfilled via ETF shares, and ETF shares might be backed by COMEX contracts!

Holy Moly!  But wait, there's more!

The main custodian of the silver ETF SLV is JP Morgan, who is also the major silver short at the COMEX.  Who's backing who?  What is backing what?  JP Morgan is now the guarantor of JP Morgan! 

It's all just promises of promises of JP Morgan, one of the founders of the Fed!

JP Morgan's silver held for the ETF cannot be audited, because in the SLV prospectus, it says they can use sub-custodians who can use further sub-custodians!  In other words, not even JP Morgan really knows who has the silver that they are supposed to hold for the ETF!  Thus, JP Morgan has already created the legal structure to avoid being held accountable!

And it's our fault, because our society actually trusts that behemoth, or, at least, are deceived into doing so, as is evidenced by the size of the ETF holdings, the size of COMEX open interest in silver, and by the size of the "over the counter" unregulated "other precious metals" derivatives reported by the BIS. 

Most commodity brokers don't care about the facts of what I've told you, so they don't tell the customer.  They just want their commission on the sale! 

So who's looking out for you?  The newspapers?  In on it.  Your Church?  They are mostly childish in their understanding, and ignorant because they reject both the practical and prophetic implications of the law; supposedly that stuff no longer applies, as it's all just "grace" now.

One monopolist apologist who has refused to cover the gold and silver manipulation scandal in progress over the last ten years just went out of business.  Businessweek Magazine is losing money, and thus will be auctioned, or even sold for $1.

Businessweek was only worthy of being quoted in the Silver Stock Report two times in the last 10 years.  That's quite pathetic of them, as I quote links to other news sources regularly.

That's another problem with lies.  They are unsustainable.

Perhaps truthful reporting results in increased readership?  I know many of my most faithful and appreciative readers have been referred by their friends and family.

One of the things that troubles me about unsustainable debt-ridden companies that get handouts from the government is that they can continue to pay for advertising that they cannot afford, and do not deserve.  This raises the cost to advertise for all market participants, which reduces my (and other honest business's) ability to reach people with the truth, because advertising is more expensive than it would otherwise be.  Thus, it's harder to afford to "advertise" at unrealistically high prices.

While I may not be able to afford extensive advertising costs, the truth is winning the war.  Therefore, please tell your friends about the Silver Stock Report.  They generally either appreciate the eye-opener, or get so angry, it's at least funny to watch.




    Jason Hommel