Can Secession Succeed?

The Big Secret Issue Is “DEXIT”

By Lowell Ponte

On March 29 the United Kingdom began its official exit from the European Union (EU), an emerging empire that has been erasing the sovereignty and identity of 28 member nations.

President Donald Trump — who was elected last November by the same rising tide of anti-globalist, anti-collectivist populism that voted for Brexit last June – praised the British and urged more nations to leave the EU.

“Brexit isn’t the end,” said a furious Jean-Claude Juncker, head of the European Commission and EU boss. “If [Mr. Trump] goes on like that, I am going to promote the independence of Ohio and Austin, Texas in the U.S.”

In rare agreement over secession, Brexit leader Nigel Farage now supports the independence of part of California, at least from Los Angeles and Hollywood north to the San Francisco Bay. Farage would let the more conservative parts of California – its eastern counties plus Orange County and the state’s second largest city San Diego – remain in the U.S.


President Trump has offered to sell California to Mexico, which it could merge into Mexifornia, say several online satirists. But this is already happening. Los Angeles is already the second-largest Mexican-populated city on Earth, and the Golden State is home to a quarter of America’s illegal aliens.

The once-Golden State of 39 million people is also home to a third of America’s welfare recipients, whose addiction to free government goodies has made it a one-party Democratic state with the nation’s biggest wealth disparity — between the Hollywood and Silicon Valley rich and a huge class of impoverished people who vote Democratic.

Its rich are a privileged globalist elite, with Silicon Valley dependent on cheap imported labor from India, and Hollywood increasingly dependent on the worldwide box office and money from the People’s Republic of China.

Both the EU and the U.S. have been flooded with immigrants in order to submerge traditional national identities and values, as Craig R. Smith and I explore in our latest book Money, Morality & The Machine: Smith’s Law in an Unethical, Over-Governed Age. This has been a standard tactic of empires since Biblical times, and in our bones we recognize its intent.

Americans are also voting with their feet, with large numbers of successful California business people moving from overtaxed Progressive California to freer-market states such as Texas, no longer inclined to secede as it was in 1861. The new California Gold Rush is out of California for businesses, but into California for welfare recipients. It bodes ill for California’s future.

Progressives, their power now in decline, find hope in their bellwether state California breaking away – but where will their welfare money come from after the successful flee and the poor remain? Can its leftist leaders afford to buy the 45.8 percent of California owned directly by the U.S. Government? Will the state even have a common border with Mexico? And will the loss of California’s votes doom United States Democrats to permanent minority status?

And people are voting with their money to “Dexit,” to exit the uncertain paper dollar and move instead to hard, dependable gold whose value cannot be manipulated by central bank inflationists or greedy politicians. Great Britain was able to Brexit because it kept its own currency, the Pound, and was not seduced into adopting the now-debased Euro, as many other EU nations did to their sorrow. Likewise, more and more people here and abroad want an alternative to the global reserve currency, the U.S. Dollar, that Washington keeps printing by the trillions out of thin air.

The good news is that you can have an alternative to paper dollars by diversifying a portion of your savings into the security and strength of gold, the world’s preferred money for thousands of years. You can decide today to secede from dollars based (and debased) only on politician promises. You can go instead for monetary independence, for your own “Dexit” to gold.

For an amazing interview with Lowell Ponte, contact Sandy Frazier at 1-516-735-5468.
For a media copy of Craig R. Smith and Lowell Ponte’s latest book, Money, Morality & The Machine: Smith’s Law in an Unethical, Over-Governed Age, contact David Bradshaw at 1-602-918-3296.



Nick Gutteridge, “EU Could BREAK UP the U.S.: Juncker in Jaw-Dropping Threat to Trump Over Support for Brexit,” U.K. Express, March 30, 2017. URL:

Tyler Durden, “EU Chief Threatens Trump For Supporting Brexit; Vows To ‘Promote’ Break Up Of U.S.,” ZeroHedge, March 30, 2017. URL:

Rick Moran, “EU Commission President: I’ll Break Up the US Unless Trump Is More Supportive of EU,” American Thinker, March 31, 2017. URL:

Alyssa Pereira, “One Calexit Campaign to Split State East-West Gets Support from Brexit Backers,” San Francisco Chronicle, March 27, 2017. URL:

“Britain Ends Its Loveless Marriage With the EU” (Editorial), Investor’s Business Daily, March 29, 2017. URL:

“Trump Negotiating to Sell California to Mexico?” URL:

“The Brexit Has Begun: Now What?” Stratfor, March 29, 2017. URL:

Craig R. Smith and Lowell Ponte, Money, Morality & The Machine: Smith’s Law in an Unethical, Over-Governed Age. Phoenix: P2 Publishing, 2016.


Is President Trump Following the Best Model of Capitalism?

The Death Spiral of Sears, and Amazon’s Marketing Ascent

By Lowell Ponte

My parents loved Sears, the company whose mail-order catalogs – offering everything from kit Victorian homes to electrified health belts — were wish books for seven generations of Americans.


Now that its bankruptcy seems near, we should consider what brought this once-innovative marketing giant down – and what we can learn from its heir apparent, Amazon, about how business has been changing.


Sears in its heyday was a deadly competitor to mom-and-pop stores, who could not match Sears’ prices, quality, or guarantees.

Town stores also suffered after World War II when greedy, short-sighted local politicians decided it would be easy to tax their customers with parking meters. Customers went instead to the new local shopping mall, where ample parking was free and a large Sears store anchored one end of the complex. Small retailers in many American downtowns withered and died.

Now most malls are overtaxed and are becoming ghost towns where an indoor cannon could be fired in mid-afternoon without hitting a customer. Malls are frantically replacing stores with movie theaters and restaurants.

Shoppers have moved away from brick-and-mortar stores to the Internet, where 56% of their new purchasing dollars are spent at Amazon. Some retailers, like Costco and Trader Joe’s, remain successful by responding to their customers. Sears seems to have little appeal to the young, and to have lost touch with what their parents and grandparents want.

Such “creative destruction,” as economist Joseph Schumpeter called it, is a painful necessity to keep renewing a vibrant economy. Sears has been unable to compete with Amazon’s highly-refined marketing, just as local mom-and-pops were once-upon-a-time unable to compete with Sears. Sears has been losing roughly $2 Billion a year in recent years, and its suppliers and lenders are now demanding tighter payments and more security. Some suppliers have halted shipments, and insurers have stopped insuring, making Sears’ prospects even more uncertain.

State politicians, eager to keep their sales tax revenues high, have insisted that Amazon pay – even though the Washington State-based company gets little or no benefit as locally-based stores do. The coercive greed of government is unlimited, which is why some companies flee the U.S.

President Donald Trump faces the same decision nationally that he has internationally: whose companies and jobs are to be protected against competitors by government? Will an institution like Sears be saved by political intervention, or allowed to die? Mr. Trump has been critical of Jeff Bezos, who owns Amazon and the liberal Washington Post.

(The greatness of Sears at its prime, of course, was not as a retailer but as a bank. Merchandise was used mostly to get people to take out loans. Sears also created Discover Card – the innovative first No Fee, High Credit Limit, Cash-Back Card – in 1985.)

Sears lately, to stay solvent, has sold many of its financial operations. It has sold its Craftsman brand to Stanley Black & Decker and offered its Kenmore and other brands with less success. With every such step, Sears loses more of its special identity and becomes just another hawker of other people’s products. And much of its most valuable real estate has been sold, too.

Sears is now owned and run by hedge fund billionaire Eddie Lampert, who, critics say, knows a lot more about high finance than he does about how to satisfy retail customer needs and desires.

Amazon, meanwhile, now plans to hire 100,000 people in the next 18 months. It also plans to employ even more automation, and to deliver more goods via drones. Amazon is also, in effect, becoming the world’s largest online “mall” where other retailers can use sophisticated arbitrage to compete, as Christopher Mims explores in the Wall Street Journal.

Most surprisingly, Amazon now uses local warehouses and a fleet of swift delivery drivers, while planning stores for books, appliances, groceries and other brick-and-mortar structures. It aims to do better the kinds of things that Sears did best generations ago. Stocks rise and fall, but only the enduring things of value such as love and gold in the long run remain worth our time.

For an amazing interview with Lowell Ponte, contact Sandy Frazier at 1-516-735-5466.
For a media copy of Craig R. Smith and Lowell Ponte’s latest book, Money, Morality & The Machine: Smith’s Law in an Unethical, Over-Governed Age, contact David Bradshaw at 1-602-918-3296.


Terry Jones, “The Death of Retailing As We Know It?” Investor’s Business Daily, March 22, 2017. URL:

Bourree Lam, “Is This the End of Sears?” The Atlantic, March 22, 2017. URL:

Ed Straker, “Why Is Sears Dying?” American Thinker, March 23, 2017. URL:

Tyler Durden, “Retail Nightmare Just Won’t End: Sears Crashes On ‘Going Concern’ Warning….” ZeroHedge, March 22, 2017. URL:

___________, “Sears Enters Death Spiral: Vendors Halt Shipments, Insurers Bail,” ZeroHedge, March 23, 2017. URL:

Laurel Wamsley, “Can Sears Survive? Maybe Not, Company Admits in Financial Filings,” NPR, March 22, 2017. URL:

Sapna Maheshwari, “Department Stores, Once Anchors at Malls, Become Millstones, “ New York Times, January 5, 2017. URL:

Nick Wingfield, “Amazon’s Ambitions Unboxed: Stores for Furniture, Appliances and More,” New York Times, March 25, 2017. URL:

Nelson D. Schwartz and Nick Wingfield, “Amazon to Add 100,000 Jobs as Bricks-and-Mortar Retail Crumbles,” New York Times, January 12, 2017. URL:

Christopher Mims, “The High-Speed Trading Behind Your Amazon Purchase,” Wall Street Journal, March 26.2017. URL:

A New California Gold Rush?

Record Rains Re-opened Its Veins of Gold!

California’s 2017 record rains nearly washed away the state’s tallest dam, threatening 200,000 people downstream near this place that 163 years ago was named Oroville. “Oro” is Spanish for gold.

Prospectors rushed here from all over the world following news of the 1849 huge gold strike in northern California, soon to become America’s Golden State.

This year’s heavy rains ended the state’s long drought, and they also opened millions of veins of gold that the ’49ers never found.


Hopeful get-rich-quick people should be headed to California again, now that the streams are awash with flakes and nuggets of gold for the taking.

What seems surprising is that so few have grabbed this opportunity.

The California Gold Rush symbolized the spirit and energy that caused exceptional people to move to America, and then to move west to pan for gold and settle the frontier. Are we losing that adventurous, hopeful spirit?

“[R]estlessness, ambition, and innovation” have been key American traits, qualities that once made us great, writes George Mason University economist Tyler Cowen in his new book The Complacent Class.

“But today Americans are working harder than ever to avoid change,” says Cowen. We are less inclined to pull up stakes and move, less likely to start a business…and increasingly focused on minimizing exposure to new, challenging, or difficult experiences.

“The descendants of immigrants and pioneers,” writes demographer Michael Barone, “are increasingly content to just stay put.” And without this restless drive to go forward, the passion needed to make America great again and find success on new frontiers is gone. The American Dream is vanishing.

So millions refuse to lift a finger to gather gold in California. And, likewise, many refuse even to buy gold, Mother Nature’s own natural money from the Earth, at today’s low prices. They prefer to wait for President Donald Trump to bring them security.

But any economist could tell them that this is unwise. If Mr. Trump’s policies succeed, America may soon move toward a new gold standard currency; this would push the price of gold up to $5,000 an ounce or more – and those who diversity by using a fraction of their savings to buy gold today will become very successful.

But Mr. Trump might fail. He turns 71 this year and could be struck down by health problems or, God forbid, a rabid attacker whose hatred has been stoked to explosive levels by the anti-Trump media. Mr. Trump’s revolution depends on his unique charisma and bond with the people. If he is lost, who can replace him and lead his revolution to success?

If the Trump Revolution fails and the Big Government Party again takes power, taxes will skyrocket. The unbacked paper dollar and economy will tank. And only those with gold will be able to ride out the storm.

Those with gold will be the “saving remnant” of America, the remnant whose savings in hard, honest money will save their family, help their neighbors, and make their nation more stable and secure. Enough of them could even help make America great again.

Either way, whether President Trump succeeds or fails, diversifying with gold looks like a smart decision….whether you pan for it in California or buy it now. Americans used to succeed because they made decisions. Can they still do it?

For a fascinating interview with Californian Lowell Ponte, contact: Sandy Frazier 516-735-5468.

For a media copy of Craig R. Smith and Lowell Ponte’s latest book, Money, Morality & The Machine: Smith’s Law in an Unethical, Over-Governed Age, contact: David Bradshaw, 602-918-3296.


Joe Vazquez, “Storm Runoff in California Gold Country Exposing New Motherlode?” KCBS, San Francisco, February 27, 2017. URL:

Ada Carr, “California Storm Runoff Could Trigger Modern-Day Gold Rush, Mining Experts Say,” Weather Channel, March 9, 2017. URL:

Bracing for a Trump vs. Fed Money Crisis

It’s Time to Grab Your Wallet!

By Craig R. Smith and Lowell Ponte

The biggest surprise of President Donald J. Trump’s Administration might not involve congressional lawmakers, the Deep State, mobs of protestors, or foreign policy.

One part of the national policy apparatus still under liberal control is the Federal Reserve. Its Chair Janet Yellen, a grandmotherly-appearing Keynesian academic from the University of California Berkeley, will hold her position until January 2018, an election year, and says she likely will remain a member of the Fed’s Board of Governors until 2024.

For the last eight years the quasi-government Fed held interest rates near zero, making it easy for President Barack Obama’s Administration to have massive stimulus policies and run the government with nearly free and easy money.


With Mr. Trump’s election, this Fed policy immediately began to reverse. Yellen now hints that the Fed may raise interest rates perhaps 3 or even 4 times this year. In the near term, every 1% increase in the cost of borrowing money could hamper 1% of growth in the American economy, as well as add $1.6 Trillion to the government’s 10-year budget deficit.

Trump wants to jumpstart the economy and boost growth by at least 4% and perhaps 6%. The Fed under Yellen “does not want faster growth,” writes New York Times financial reporter Binyamin Appelbaum; it regards anything above 1.8% growth as unsustainable. Yellen could thwart Trump by raising rates that undermine the economy.

It might be, writes Forbes columnist Dan Dorfman, that “the Fed simply dislikes President Trump and the Republicans and does not want to be as accommodating to them as it was to President Obama.”

Yellen will also try to create deliberate inflation. And President Trump’s policies – tax breaks that will bring trillions back to the U.S., and a trillion in infrastructure spending to put Americans back to work and lift the economy that Mr. Obama left flat for 8 years, and so forth – will flood the U.S. with money. Both President Trump and Fed Chair Yellen will inevitably generate some inflation – perhaps uncontrollable – and reduce the purchasing power of our paper fiat dollars. This could harm the Trump economy.

The Fed was supposedly created in 1913 to keep partisan politics out of monetary policy, which the parties could otherwise use to enhance their re-election prospects. In fact, the Fed was created to “furnish an elastic currency,” abundant money that politicians could use to build a huge warfare and welfare state. In 104 years our “elastic,” political money has lost 98% of its purchasing power – and might soon lose even more value to inflation.

President Trump could remedy this by restoring America’s pre-1913 gold standard dollar. The Fed would no longer be needed because the metal-backed currency specified by our Constitution is self-regulating. Politicians ended the gold-backed dollar because it limited their spending. Restoring honest, hard money could limit their spending again and restore the smaller, more honest government our Framers envisioned.

Mr. Trump has spoken favorably of the gold standard, but we would have to set a new currency value of $5,000 or more dollars to one ounce of gold – a boon to those who converted a portion of their savings into this universal, ancient money for less than $5,000 per ounce. We shall see if Mr. Trump appoints pro-gold people to the Fed.

In our new study The Inflation Solution and our latest book Money, Morality & The Machine, we investigate how politicians escaped their golden handcuffs and built a gigantic government. We explore how diversifying with gold might help protect your family from future inflation.

For a fascinating interview with Craig R.Smith or Lowell Ponte, contact: Sandy Frazier 516-735-5468

For a media copy of Craig R. Smith and Lowell Ponte’s study The Inflation Solution and/or their latest book, Money, Morality & The Machine: Smith’s Law in an Unethical, Over-Governed Age, contact: David Bradshaw, 602-918-3296


Dan Dorfman, “Under President Trump The Fed Is Suddenly In A Hurry To Raise Rates,” Forbes, March 9, 2017. URL:

Binyamin Appelbaum, “Trump Wants Faster Growth. The Fed Isn’t So Sure,” New York Times, March 12, 2017. URL:

Brian Riedl, “Higher Interest Rates Could Explode Budget Deficits and Our National Debt,” National Review, March 11, 2017. URL:

Ralph Benko, “President Trump: Replace The Dollar With Gold As The Global Currency to Make America Great Again,” Forbes, February 25, 2017. URL:

John D. Mueller, “Trump’s Real Trade Problem Is Money,” Wall Street Journal, January 25, 2017. URL: or

Nathan Lewis, “Limited Convertibility: Something New For A 21st Century Gold Standard,” Forbes, March 8, 2017. URL: