Mike Campbell's Goofy involves his analysis of the ongoing loss of confidence in Government.  

(the beginning of Mike's Goofy begins at the 35:28 mark on the lefthand time scale, or the -3:06 mark on the right)

Two weeks ago, I explained to Capitol Hill Daily readers what America might look like after a government collapse. 

And I ended on a note about the Federal Reserve.

Today, I'm going to begin with a radical statement:

The purpose of the Federal Reserve is to benefit its shareholders... not America.

This statement is confusing to most people, because they assume the Federal Reserve is an agency of the government. It's not.

In fact, it's a private entity. Only the shareholders aren't private investors. They're the major "too big to fail" banks of America.

The next thing you must understand is that the Fed was given (by Congress) the most lucrative monopoly on Earth... total control over the creation of money. So it can print money,legally. 

What a business!

Now, don't get me wrong - there is some regulation. What Congress gives, it can also take away.

The problem is that when you can literally create money, you have lots of cash to influence the system.

Indeed, when it comes to the economy, the Fed is even more powerful than the president. Only Congress and the president, working in unison, can check the power of the Federal Reserve.

And considering that such cooperation isn't exactly the norm in D.C., the Fed is using its insane amount of power to rob you blind.

Here's how...

Too Big to Fail

Simply put, the supply of money should only grow at about the same rate as the economy. It creates a solid equilibrium between goods in the economy and the money supply.

But when the supply of money grows too quickly, it shatters equilibrium and leads to inflation (i.e. - too many dollars chasing too few goods).

And right now, we have too many dollars.

Of course, we can thank the economic crisis in 2008 for that. As you know, when the banking crisis erupted, the Fed was fearful that its shareholders were going belly up. So the former CEO of Goldman Sachs (GS), Hank Paulson, arranged for billions of dollars to be transferred from the government to these private banks through the Troubled Asset Relief Program (TARP).

Keep in mind, I believe that allowing banks to go bankrupt would've been the best solution for America. We have over 200 years of bankruptcy court precedent, and the courts should've overseen the liquidation of these mismanaged banks. It ultimately would've punished the guilty parties.

But that didn't happen. Instead, the Federal Reserve kicked into action. It created over $1 trillion that was lent to these same banks to keep them from collapsing.

Now, with so much money floating around, bank deposit owners are worried that the supply of dollars will outstrip demand. This could drive the price of the dollar down. In fact, I believe we could even see a flash crash of the dollar.

And that's precisely how the Fed is stealing from you. It's knowingly devaluing the dollar, so your money can buy fewer goods.

And no one is safe.

Say you're happily employed - perhaps you even got a raise recently. Unfortunately, inflation can devalue your dollars so fast that you end up with less buying power than you began with.

As long as the Fed continues on its current path, we'll continue holding a currency that's worth less and less every day.

How Can We Protect Ourselves?

On Friday, you'll receive news regarding a very specific action to take.

Please check your inbox.

In the time being, just know this...

We'll all likely get poorer unless we take serious steps to hedge ourselves.

Buying gold, stocks, real estate and other hard assets is the best hedge. When the dollar crash comes, these assets will likely bounce back from inflation, even if their prices decline at first.

Bonds, CDs and cash are the assets I encourage everyone to avoid. They'll be crushed by inflation.

Once again, this is just a small part in the ongoing quest to see what America will look like after a government collapse.

Along the way, I want to explain what's happening behind the scenes in Washington and give you as much actionable advice as possible.

Until next time, I remain...

Your eyes on the Hill,

Once upon a time the government had a vast scrap yard in the middle of a desert.

Congress said, "Someone may steal from it at night."

So they created a night watchman position and hired a person for the job.

Then Congress said, "How does the watchman do his job without instruction?"

So they created a planning department and hired two people, one person to write the instructions, and one person to do time studies.

Then Congress said, "How will we know the night watchman is doing the tasks correctly?"

So they created a Quality Control department and hired two people. One was to do the studies and one was to write the reports.

Then Congress said, "How are these people going to get paid?"

So they created two positions: a time keeper and a payroll officer then hired two people.

Then Congress said, "Who will be accountable for all of these people?"

So they created an administrative section and hired three people, an Administrative Officer, Assistant Administrative Officer, and a Legal Secretary.

Then Congress said, "We have had this command in operation for one year and we are $918,000 over budget, we must cut back."

So they laid-off the night watchman.

NOW slowly, let it sink in.

Quietly, we go like sheep to slaughter.

Does anybody remember the reason our government gave for the establishment of the DEPARTMENT OF ENERGY during the Carter administration?

Anybody?

Anything?

No?

Didn't think so!

Bottom line is, we've spent several hundred billion dollars in support of an agency, the reason for which very few people who read this can remember!

Are ya ready for the rationale offered by our government??

It was very simple... and at the time, everybody thought it very
appropriate.

The Department of Energy was instituted on 8/04/1977, TO LESSEN AMERICA'S DEPENDENCE ON FOREIGN OIL.

Hey, pretty efficient, huh???

AND NOW IT'S 2012 -- 35 YEARS LATER -- AND THE BUDGET FOR THIS "NECESSARY" DEPARTMENT IS AT $24.2 BILLION A YEAR. IT HAS 16,000 FEDERAL EMPLOYEES AND APPROXIMATELY 100,000 CONTRACT EMPLOYEES; AND LOOK AT THE JOB IT HAS DONE!

(THIS IS WHERE YOU SLAP YOUR FOREHEAD AND SAY, "WHAT WERE THEY THINKING?")

34 years ago 30% of our oil consumption was from foreign imports. Today 70% of our oil consumption is from foreign imports.

Ah, yes -- good old Federal bureaucracy.

NOW, WE HAVE TURNED OVER THE BANKING SYSTEM, HEALTH CARE, AND THE AUTO INDUSTRY TO THE SAME GOVERNMENT?

Hello!! Anybody Home?

Signed.... The Night Watchman

A MUST SEE: The Mother of the Boston Bombers is taken apart, just shredded by Judge Jeanine Pirro. Both woman are a must see on the video below!

A lack of non-wage benefits data mean that there is insufficient information to make a definitive comparison of total compensation between the private and public sectors. But the data that are available indicate that the public sector enjoys a clear wage premium. After controlling for such factors as gender, age, marital status, education, tenure, size of firm, province, city, type of job, and industry, public sector workers (including federal, provincial, and local) enjoyed a 12.0 percent wage premium, on average, over their private sector counterparts in Canada. When unionization status is factored in, the wage premium for the public sector declines to 9.5 percent.

Public sector workers seem to enjoy better non-wage benefits than those in the private sector, too. For example, 88.2 percent of public sector workers were covered by a registered pension plan compared to 24.0 percent of private sector workers. Of those public sector workers covered by a registered pension plan, 94.0 percent were covered by a defined benefit pension compared to just over half of private sector workers. In addition, public sector workers retire earlier than their private sector counterparts—about 2.5 years, on average—and are less likely to lose their jobs (3.8 percent in the private sector versus 0.6 percent in the public sector).

To ensure that the overall public sector compensation is fair to both taxpayers and public sector workers, a new institutional frame work is needed.

First, Statistics Canada must collect data on wage and non-wage benefits for public and private sector workers more regularly and more systematically than it now does.

Second, the comparison must include total compensation, not just a narrower comparison of wages or specific benefits such as pensions.

In order for this new framework to function properly, information regarding public sector wages and benefits must be transparent, accessible, and disclosed regularly.

Finally, a number of mechanisms would better ensure that overall public sector compensation is comparable with the private sector. They include a specific, legislated mechanism within government that regularly calculates and sets the total compensation levels for public sector positions; an independent wage board; and empowering public sector unions to become more involved in the determination of the composition of compensation.

....download the study HERE