Initial Praise for “High Alert” “‘High Alert’ is an exceptionally well-conceived and executed book. It is both scholarly and accessible, which is not easy to do or commonly achieved. I enjoyed it immensely.” —G. Edward Griffin, author, “Creature From Jekyll Island” Founder, Freedom-Force.org “If you would like you and your family to enjoy a good life in every way and you would like your grandchildren to have a better life overall, you must read this book. The world can change with just one concept — ‘personal responsibility.’ Thank you for having the guts to tell the world what they really need to do.” —Patrick C. Gorman, President of Resource Consultants. Host of "Hard Money Watch" "I think ‘High Alert’ is a wonderfully provocative book. You have your own voice, your writing is clear and concise, the book is well organized, and rather than simply scaring a reader with your extremely intriguing theories you've suggested actions and tips so as to not leave him/her hanging in fear.” —Pamela Browne "‘High Alert’ puts the reader in the center of the global transformation providing insights, cautions, history and personal financial solutions. Important, you bet. While the Internet encourages freedom, the financial elite are losing ground with their ‘money games.’ A must read!” —David Morgan, publisher, Silver-Investor.com More Praise for “High Alert” “‘High Alert’ will be the subject of much discussion and debate within the freedom movement over the next year so.” —Tom Knapp, Founder RationalReview.org “Bravo! Every few years I hear about some ‘must read’ financial text. In fact, this is the first book in ages with truly original thinking, and insights I can’t find anywhere else. ‘High Alert’is a masterfully prescient perspective of the financial and sociopolitical effects of the Internet, and the snowballing financial earthquake it is generating. For anyone who wants to know the causes of our rapidly decaying economic system this is the book to read. For those who want to become wealthy, ‘High Alert’s’ strategies are the ones to follow. Prepare to have your eyes opened!” —James Braha, investment commentator “Not since Jim Rodgers’ ‘Hot Commodities’ has there come along a more accessible – and compelling – sneak preview of things to come in the global marketplace, and how to profit from the whirlwind ahead. Information is one of the currencies of this new era, but silver and gold will return as currencies as well, as the scales fall from the public’s eyes and the current fiat-money system is seen for the naked emperor that it is. ‘High Alert’ explains [these issues) in elegant, page-turning prose and puts both the present and the future in intelligent context.” —David Bond, editor, SilverMiners.com “Wile and Fadiman propose an ingenious hypothesis. If it’s right, their VESTS will get you through the coming storm.” —Jim Babka, President, DownsizeDC.org HIGH ALERT How the Internet and the global power elite are causing a financial hurricane — and how to profit from it. anthony wile founder of free market news network FMNN.COM THIRD EDITION With Mark Fadiman ABP Appenzeller Business Press AG All rights reserved. No part of this publication may be reproduced, stored in a special system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior permission of the publisher. This publication contains the opinions and ideas of its authors and is designed to provide useful advice in regard to the subject matter covered. However, this publication is offered with the understanding that neither the authors nor the publisher is engaged in rendering legal, accounting or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. The authors and publisher specifically disclaim any responsibility for liability, loss or risk, personal or otherwise, that is incurred as a consequence, directly or indirectly, of the use and application of this book or any of its contents. Notwithstanding anything to the contrary set forth herein, Appenzeller Business Press AG, its officers and employees, affiliates, successors and assigns shall not, directly or indirectly, be liable, in any way, to the reader or any other person for any reliance upon the information contained herein, or inaccuracies or errors in or omissions from the book, including, but not limited to, financial or investment data. Any specific repetition in various published works from the publisher or others, unless noted, is unintentional and may be the result of the nature of financial terminology and the fairly narrow focus of the financial writing and editing in which the publisher and authors are involved. First-person statements in the narrative of this book are Anthony Wile’s. Mandarin Chinese and German versions now available Copyright 2006-2008 © Appenzeller Business Press AG •THIRD EDITION ISBN: 978-3-905874-00-6 This book is dedicated to the blessings in my life (and the reason I remain at “high alert”), my lovely wife Hillary and my three wonderful children — Gabrielle, Jesse and Julian. —Anthony Wile A NTHONY W ILE Acknowledgments Harry Browne: You lent your name and spirit to Free Market News Network, Corp. (FMNN) long before it was a success. You were an inspiration throughout and you have left many behind to carry on your great work. G. Edward Griffin: “The Creature From Jekyll Island” was one of the most important and truthful books of 20th-century financial history. Thank you for your counsel and guidance in helping make this book a reality. Mark Fadiman: What is left to say but Hallelujah! Other free-market thinkers I would like to thank for aid or inspiration, personally or professionally: Jim Babka, William Bonner, Douglas Casey, Terry Coxon, Richard Daughty, Dr. Richard M. Ebeling, Marshall Fritz, Pat Gorman, Richard J. Maybury, David Morgan, William Murphy, Bernard von NotHaus, Dr. Lawrence Parks, Dr. Ron Paul (R-Texas), Lew Rockwell, David Smith, Dr. Helen Szamuely and Christian Wirth. —Anthony Wile < 4 > H IGH A LERT AUTHOR’S NOTE Early in the 2000s, I became convinced of two things. First, precious metals were going to go up in price a good deal. Second, thanks to the Internet, sociopolitical coverage and hard-money analysis were being combined to offer a new and truthful communications medium that represented a tremendous business opportunity. We were right about “honest money” — gold and silver; we are being proven right about the promise of the new Internet site we started, as well. After about four years, FreeMarketNews.com — Free Market News Network, Corp. (FMNN) — is closing in on five million viewers a year. Give it another 10-12 months and viewership may be north of 10 million. While I am no longer involved with FMNN as chairman or CEO, I feel blessed by the many friends I’ve made among FMNN’s commentators and viewers. Thanks to all of you who have been so patient while I struggled with this book, “High Alert”— especially those who made such generous offers to help when I was “stuck.” And thanks, especially, to those whom I have called my sounding board — including FMNN’s sadly departed president and free-market champion Harry Browne, Federal Reserve historian G. Edward Griffin, and hard-money economist Dr. Lawrence Parks among others. The best herein is theirs. Only the defects are mine. —Anthony Wile < 5 > A NTHONY W ILE FOREWORD When High Alert first came to my attention in 2006, it was a particularly hectic time for me, and I was not able to read the book in its entirety. I checked the index for critical topics, read selected portions pertaining to my special interests, and was impressed by its scope and scholarship. A year later, when Anthony invited me to write the Introduction to the second edition I picked up the book once again and, this time, plowed through it cover to cover. What a delightful journey it was. This is an investment guide book that probes deeply into the political and economic issues that are shaping our future. It shows where the economic break points are going to occur and what you can do to ride out the financial crisis that now is building around us. High Alert is similar to a coffee-table book in that you can flip through the sections and, starting at almost any page, you will find something of interest. Yet, this is not just for casual reading. There is a lot of history here, and you will discover thousands of factual treasures along the way. The message of this book is simple: You don’t have to be a victim of the system. You don’t have to be defeated by a rigged stock market. You don’t have to be crushed by inflation. The first step toward financial survival is to wake up to the reality of the world in which you live, a world that is quite different from the images created by our mass media. The second step is to take charge of your life through strategic decisions involving your economic and political well being. This book will get you up to speed with both of these steps. An incredible amount of history has been crammed into these pages and presented in a highly accessible form. Eventually, you may want to learn more about the events described here, and that will lead you to the fifty volumes contained in the bibliography; but when you reach page 244 of < 6 > H IGH A LERT this single volume, you will have a sufficiently clear view of the historical landscape to make correct decisions.