Bernanke delivers blunt warning on U.S. debt
"Federal Reserve Chairman Ben "Shalom" Bernanke warned Congress on Wednesday that the United States could soon face a debt crisis like the one in Greece, and declared that the central bank will not help legislators by printing money to pay for the ballooning federal debt. Recent events in Europe, where Greece and other nations with large, unsustainable deficits like the United States are having increasing trouble selling their debt to investors, show that the U.S. is vulnerable to a sudden reversal of fortunes that would force taxpayers to pay higher interest rates on the debt, Mr. Bernanke said."
http://www.washingtontimes.com/news/2010/feb/25/bernanke-delivers-warning-on-us-debt
Our Federal Reserve controlled government and our CIA-CFR managed mass media frequently inform us that we have an expanding $12 trillion dollar national debt and that future generations of slaves are going to be burdened with an ever expanding one. The one issue they never address is the insanity and unnecessary need of its existence in the first place. Most, if not all the world's governments do not print their own money but must borrow it with interest from private international central banks owned and operated by the same ethnic criminal cabal of pseudo-humans. Any sane and intelligent populace would demand the nationalization of their central bank, thus eliminating the scam of "borrowing" money and the formation of a "national debt." But when most of humanity is insane and nonintelligent, what do you expect? Once the state expropriates the central bank then it simply prints the money free of any onerous loans or debt.
Of course you will not hear the logical and obvious solution in the mass media or from your worthless millionaire CFR Congressperson, since they are simply tentacles of an omnivorous octopus of gangrenous greed consuming the globe. No, instead they promote the demented delusion that the debt must be paid off, as if a governmental system cannot exist or function without borrowing its currency from an organized transnational clique of insatiable Shylocks.
http://www.federal-reserve.net/whatisthefederalreservebank.htm
http://www.john-f-kennedy.net/thefederalreserve.htm
Showing posts with label federal reserve. Show all posts
Showing posts with label federal reserve. Show all posts
26 February, 2010
22 February, 2010
Interview with Eustace Mullins
Interview with [the late] Eustace Mullins
http://wideeyecinema.com/?p=113
Eustace Mullins argues that the Federal Reserve Act of 1913, drafted by German banker Paul Warburg and others in a secret meeting, defies Article 1, Section 8, Paragraph 5 of the US Constitution by creating a “central bank of issue” for the United States. Mullins goes on to claim that World War I, the Agricultural Depression of 1920, the Great Depression of 1929, and Adolf Hitler’s rise to power were brought about by international banking interests in order to profit from conflict and economic instability.
Eustace Mullins died on Feb 2, 2010
http://foems.multiply.com/journal
http://wideeyecinema.com/?p=113
Eustace Mullins argues that the Federal Reserve Act of 1913, drafted by German banker Paul Warburg and others in a secret meeting, defies Article 1, Section 8, Paragraph 5 of the US Constitution by creating a “central bank of issue” for the United States. Mullins goes on to claim that World War I, the Agricultural Depression of 1920, the Great Depression of 1929, and Adolf Hitler’s rise to power were brought about by international banking interests in order to profit from conflict and economic instability.
Eustace Mullins died on Feb 2, 2010
http://foems.multiply.com/journal
22 December, 2009
Stagecraft
Since last century our covert global government primarily through their MI6-CIA-NSA-Mossad agencies have orchestrated numerous fake rigged wars and are now waiting to unleash another one upon Iran. Each phony conflict has a pre-determined start and finish, just like a Broadway play or Hollywood film. The only difference is that the actors on stage or screen do not really die.
Orwell's book 1984 has Goldstein and the Brotherhood and we have bin-laden and Al-qaeda, who both serve the same function. Bin-laden and Al-qaeda may be real, but they are only real in the same sense that Ahmadinejad is real. Simply CIA pawns to be exploited and to maintain the facade of "real enemies". The CIA isn't stupid and through their management of the mass media like to make it appear that they are incompetent sometimes. One war is just the same as another--its all intertwined.
Central banks can exert long-term political power if they are owned by the same co-ordinated oligarchy, since they control and print the money which is the basis of socioeconomic power. The state is not separate from the central bank, it is the bank. On June 28 1998 the Washington Post published an article about the Bank for International Settlements describing how "...this economic cabal...this secretive group..the financial barons who control the world's supply of money..." shapes the world's economy.
"Through our national bank, the Federal Reserve, we extend bank credit, which we create from nothing, to all local banks who are member banks. They in turn extend book credit to industry. With this supposed capital we bring industry, management and labor into our debt, which debt only increases and is never liquidated. The Federal Reserve system fitted our plan nicely, since it is owned by us, but the name implies it is a government institution. " --Harold Rosenthal
Since its inception politics has been nothing but a conspiracy. A conspiracy of a minority of individuals to acquire power and control over a majority of individuals. If one does not regard world politics as being a "conspiracy" planned out many years before the events materialize in the mass media then the words of Max Nordau at the 6th Zionist Congress of 1903 reveal quite a different paradigm:
"Let me tell you the following words as if I were showing you the rungs of a ladder leading upward and upward: Herzl's Zionist Congress, the English Uganda proposition, the future World War, the peace conference where, with the help of England, a free and Jewish Palestine will be created." Thus 11 years before WWI even began it is already implemented. And even the outcome is fixed.
In 1903 our global governors predicted a future which accurately emerged, thus providing incontrovertible evidence of a conspiracy. In the last century a prominent Zionist who co-founded the NAACP named Stephen Wise wrote his autobiography entitled "Challenging Years". In it he revealed how the "election" of Woodrow Wilson as governor and U.S. President in 1912 and 1916 was pre-ordained. He writes:
"On a Sunday before his election as governor of New Jersey, in 1910, I made a nonpolitical address before the Trenton YMCA. To these fellow Jerseymen of Woodrow Wilson I said: 'On Tuesday the President of Princeton University will be elected governor of your state. He will not complete his term of office as governor. In November, 1912, he will be elected President of the U.S. In March 1917, he will be inaugurated for the second time as President. He will become one of the great Presidents of American history." Since it was all rigged back then, just imagine what its like today.
To remain ignorant of the genetic causes of behavior and morality is to remain ignorant of the physiological force which determines the sort of government or society one exists in. This ignorance also precludes any effective remedy to the problem. When those whose genome is programmed to behave in an egotistical, criminal or immoral manner proliferate or attain socioeconomic power then civilization will ultimately regress into a dysgenic dystopia like 1984.
Orwell's book 1984 has Goldstein and the Brotherhood and we have bin-laden and Al-qaeda, who both serve the same function. Bin-laden and Al-qaeda may be real, but they are only real in the same sense that Ahmadinejad is real. Simply CIA pawns to be exploited and to maintain the facade of "real enemies". The CIA isn't stupid and through their management of the mass media like to make it appear that they are incompetent sometimes. One war is just the same as another--its all intertwined.
Central banks can exert long-term political power if they are owned by the same co-ordinated oligarchy, since they control and print the money which is the basis of socioeconomic power. The state is not separate from the central bank, it is the bank. On June 28 1998 the Washington Post published an article about the Bank for International Settlements describing how "...this economic cabal...this secretive group..the financial barons who control the world's supply of money..." shapes the world's economy.
"Through our national bank, the Federal Reserve, we extend bank credit, which we create from nothing, to all local banks who are member banks. They in turn extend book credit to industry. With this supposed capital we bring industry, management and labor into our debt, which debt only increases and is never liquidated. The Federal Reserve system fitted our plan nicely, since it is owned by us, but the name implies it is a government institution. " --Harold Rosenthal
Since its inception politics has been nothing but a conspiracy. A conspiracy of a minority of individuals to acquire power and control over a majority of individuals. If one does not regard world politics as being a "conspiracy" planned out many years before the events materialize in the mass media then the words of Max Nordau at the 6th Zionist Congress of 1903 reveal quite a different paradigm:
"Let me tell you the following words as if I were showing you the rungs of a ladder leading upward and upward: Herzl's Zionist Congress, the English Uganda proposition, the future World War, the peace conference where, with the help of England, a free and Jewish Palestine will be created." Thus 11 years before WWI even began it is already implemented. And even the outcome is fixed.
In 1903 our global governors predicted a future which accurately emerged, thus providing incontrovertible evidence of a conspiracy. In the last century a prominent Zionist who co-founded the NAACP named Stephen Wise wrote his autobiography entitled "Challenging Years". In it he revealed how the "election" of Woodrow Wilson as governor and U.S. President in 1912 and 1916 was pre-ordained. He writes:
"On a Sunday before his election as governor of New Jersey, in 1910, I made a nonpolitical address before the Trenton YMCA. To these fellow Jerseymen of Woodrow Wilson I said: 'On Tuesday the President of Princeton University will be elected governor of your state. He will not complete his term of office as governor. In November, 1912, he will be elected President of the U.S. In March 1917, he will be inaugurated for the second time as President. He will become one of the great Presidents of American history." Since it was all rigged back then, just imagine what its like today.
To remain ignorant of the genetic causes of behavior and morality is to remain ignorant of the physiological force which determines the sort of government or society one exists in. This ignorance also precludes any effective remedy to the problem. When those whose genome is programmed to behave in an egotistical, criminal or immoral manner proliferate or attain socioeconomic power then civilization will ultimately regress into a dysgenic dystopia like 1984.
24 September, 2009
Land of the Dead
No matter how many rigged elections occur over the decades the living dead still don't realize that both major Rep/Dem parties are controlled by the same insane ethnic cabal of Federal Reserve bankers who select and approve their Presidents and most members of Congress. Even though a Libertarian or Constitution Party candidate is on the ballot they've been hypnotized not to consider them. Next the living dead will be commanded by their media masters (relatives of the Fed bankers) into voting for Piyush "Bobby" Jindal, Mitt Romney or numerous other phony CFR/Trilateral members in another hackneyed "Republican Revolution", actually "thinking" these frauds are "for the people", as they carry out the further deconstruction of America into a third world communist type Cuban police state.
22 September, 2009
End the Fed
In the post-modern world, it is irresponsible, ineffective, and ultimately useless to have a serious economic debate without considering and challenging the role of the Federal Reserve.
Most people think of the Fed as an indispensable institution without which the country's economy could not properly function. But in END THE FED, Ron Paul draws on American history, economics, and fascinating stories from his own long political life to argue that the Fed is both corrupt and unconstitutional. It is inflating currency today at nearly a Wiemar or Zimbabwe level, a practice that threatens to put us into an inflationary depression where $100 bills are worthless. What most people don't realize is that the Fed--created by the Morgans and Rockefellers at a private club off the coast of Georgia--is actually working against their own personal interests. Congressman Paul's urgent appeal to all citizens and officials tells us where we went wrong and what we need to do to fix America's economic policy for future generations.
Source: http://www.booksamillion.com/product/9780446549196?id=4390738807082
Most people think of the Fed as an indispensable institution without which the country's economy could not properly function. But in END THE FED, Ron Paul draws on American history, economics, and fascinating stories from his own long political life to argue that the Fed is both corrupt and unconstitutional. It is inflating currency today at nearly a Wiemar or Zimbabwe level, a practice that threatens to put us into an inflationary depression where $100 bills are worthless. What most people don't realize is that the Fed--created by the Morgans and Rockefellers at a private club off the coast of Georgia--is actually working against their own personal interests. Congressman Paul's urgent appeal to all citizens and officials tells us where we went wrong and what we need to do to fix America's economic policy for future generations.
Source: http://www.booksamillion.com/product/9780446549196?id=4390738807082
"Until a few years ago, however, the names of those who owned the Federal Reserve was one of the best kept secrets of international finance due to a proviso on passage of the Federal Reserve Act agreeing that the identities of the Fed's Class A stockholders not be revealed. Class A stockholders control the system by owning the stock of the largest member banks in the New York Federal Reserve Bank. The controlling interest is held by fewer than a dozen international banking establishments, only four of which are based in the United States. The rest of the interests are European, with the most influential of these being the Rothschild family of London. Each of the American interests are in some way connected to this family. Included among these are the Rockefellers who are by far the most powerful of the Fed's American stockholders.
"By the 1820's, the Rothschilds had become the dominant banking family of Europe, controlling the fastest growing banking houses in France, England, Austria, Italy, and Germany. Operations in these countries were overseen by the five Rothschild brothers, each of whom controlled a different country. Those bankers who allied themselves with the Rothschilds and the Masonic Order became wealthy in their own right. Those who didn't would find the going tough.
"During the late 1800's, the Rothschilds began to finance various American industrialists as well. They would do so primarily through the Warburgs of Germany who were partners in Kuhn, Loeb, and company of New York. In this fashion, Rothschild/Masonic interests would gain a foothold in the administration of this country's finances. Both the Warburgs and Kuhn Loeb would later become principal stockholders in the Federal Reserve--with Paul Warburg becoming the first chairman of the Federal Reserve Board.
"Through their U.S. and European agents, the Rothschilds would go on to finance the Rockefeller Standard Oil dynasty, the Carnegie steel empire, as well as the Harriman railroad system. The Rockefellers...owing their colossal fortune to the Rothschilds, have for the most part remained loyal to them and their European interests." --Gary Kah, En Route to Global Occupation
The Fed is the greatest modern conspiracy, since its inception in 1913 all other later conspiracies (Roswell, UFOs, JFK, RFK, OKC bombing, Martian pyramids, AIDS, 911 etc.) are derived from it--either through generating them or preventing any honest government/mass media investigation. A covert, egomaniacal, ethnic clique of genetically-related bankers wield supreme socioeconomic power over the world through the operation of their central banking system and consequent monopoly of the corporate, mass media, political and academic arenas.
03 August, 2009
Currency Wars
The Battle of Waterloo. The deaths of six US presidents. The rise of Adolf Hitler. The deflation of the Japanese bubble economy, the 1997-98 Asian financial crisis...
"In a new Chinese bestseller, Currency Wars, these disparate events spanning two centuries have a single root cause: the control of money issuance through history by the Rothschild banking dynasty. Even today, claims author Song Hongbing, the US Federal Reserve remains a puppet of private banks, which also ultimately owe their allegiance to the ubiquitous Rothschilds.
In China, which is in the midst of a lengthy debate about opening its financial system under US pressure, the book has become a surprise hit and is being read at senior levels of government and business. The book's publisher, a unit of state-owned CITIC groups, says Currency Wars had sold almost 200,000 copies, with an estimated 400,000 extra pirated copies in circulation.
Song, an IT consultant and amateur historian who has lived in the US since 1994 and is now based in Washington, says his interest was sparked by trying to uncover what lay behind the Asian crisis in 1997. Song argues that the Fed's key functions are ultimately controlled by five private banks, such as Citibank, all of which maintain a "close relationship" with the Rothschilds." [Strangely, the book hasn't been translated into English yet.]
Source: http://www.theaustralian.news.com.au/story/0,,22487560-36375,00.html?from=public_rss
Parasite Watch
"Hedge fund manager George Soros [birth name Gyorgy Schwartz] who predicted the global credit crunch has said the financial crisis has been 'stimulating' and the culmination of his life's work. And while the financial crisis continued to deepen across the globe, the 78-year-old still managed to make $1.1 billion last year.
"It is , in a way, the culminating point of my life's work", he told national newspaper The Australian. Soros is one of 25 top hedge fund managers from across Wall Street who have defied the credit crunch crisis to reap a total of $11.6 billion last year. "
Source: http://www.informationliberation.com/?id=26666
"Former Malaysian Prime Minister Mahathir Mohamad accused George Soros of ruining the Malaysian economy with "massive currency speculation". --
http://en.wikipedia.org/wiki/1997_Asian_Financial_Crisis
"In a new Chinese bestseller, Currency Wars, these disparate events spanning two centuries have a single root cause: the control of money issuance through history by the Rothschild banking dynasty. Even today, claims author Song Hongbing, the US Federal Reserve remains a puppet of private banks, which also ultimately owe their allegiance to the ubiquitous Rothschilds.
In China, which is in the midst of a lengthy debate about opening its financial system under US pressure, the book has become a surprise hit and is being read at senior levels of government and business. The book's publisher, a unit of state-owned CITIC groups, says Currency Wars had sold almost 200,000 copies, with an estimated 400,000 extra pirated copies in circulation.
Song, an IT consultant and amateur historian who has lived in the US since 1994 and is now based in Washington, says his interest was sparked by trying to uncover what lay behind the Asian crisis in 1997. Song argues that the Fed's key functions are ultimately controlled by five private banks, such as Citibank, all of which maintain a "close relationship" with the Rothschilds." [Strangely, the book hasn't been translated into English yet.]
Source: http://www.theaustralian.news.com.au/story/0,,22487560-36375,00.html?from=public_rss
Parasite Watch
"Hedge fund manager George Soros [birth name Gyorgy Schwartz] who predicted the global credit crunch has said the financial crisis has been 'stimulating' and the culmination of his life's work. And while the financial crisis continued to deepen across the globe, the 78-year-old still managed to make $1.1 billion last year.
"It is , in a way, the culminating point of my life's work", he told national newspaper The Australian. Soros is one of 25 top hedge fund managers from across Wall Street who have defied the credit crunch crisis to reap a total of $11.6 billion last year. "
Source: http://www.informationliberation.com/?id=26666
"Former Malaysian Prime Minister Mahathir Mohamad accused George Soros of ruining the Malaysian economy with "massive currency speculation". --
http://en.wikipedia.org/wiki/1997_Asian_Financial_Crisis
21 May, 2009
The Bilderberg Group
Each year since 1954 the concealed global controllers (central bank owners) send their appointed adjutants and invite their major media, corporate and government allies and agents to discuss and plan the social, political and economic future of the world for the coming year. At these annual gatherings these plutocratic power brokers determine how much to increase the price of oil, where to wage a rigged war, when to cause a "mortgage crisis" or an "al-qaeda" terrorist attack etc. Most if not all U.S. attendees of the Bilderberg Group are members of the Council on Foreign Relations or Trilateral Commission, while the European participants belong to their own equivalent secret societies such as the Royal Institute of International Affairs.
Or as Professor Carroll Quigley remarked in his tome "Tragedy and Hope": "A world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreement arrived at in frequent private meetings and conferences."
Following are various excerpts from Daniel Estulin's book The True Story of the Bilderberg Group, which is worth reading at least once I suppose. I'd give it 3 out of 5 stars.
"The Trilateral Commission doesn't secretly run the world. The Council on Foreign Relations does that." --Winston Lord, President of CFR, 1978
"Whether a Democrat, a Republican, a Conservative or a Liberal is in power, the opposing rhetoric spouted by the candidates apparently have little to do with who actually wins the elections: the decision makers who pull the strings stay the same, because cabinet seats are always held by CFR members. Even as U.S. presidents come and go, the CFR's power and agenda remain the same." --D. Estulin
"Our national purpose should be to abolish American nationality and to take some risks in order to invite others to pool their sovereignty with ours." --Kingman Brewster Jr., CFR, U.S. Ambassador to Britain
"Some even believe we are part of a secret cabal working against the best interests of the U.S., characterizing my family and me as "internationalists" and of conspiring with others around the world to build a more integrated global political and economic structure--one world, if you will. If that's the charge, I stand guilty, and I am proud of it." --David Rockefeller, Memoirs
"According to hundreds of U.S. State Department documents, the Soviet industrial and military capabilities such as trucking, aircraft, oil, steel, petrochemicals, aluminum, and computers were constructed at the U.S. taxpayers expense. As Sutton pointed out in 1972, "There was no such thing as Soviet technology."
Or as Professor Carroll Quigley remarked in his tome "Tragedy and Hope": "A world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreement arrived at in frequent private meetings and conferences."
Following are various excerpts from Daniel Estulin's book The True Story of the Bilderberg Group, which is worth reading at least once I suppose. I'd give it 3 out of 5 stars.
"The Trilateral Commission doesn't secretly run the world. The Council on Foreign Relations does that." --Winston Lord, President of CFR, 1978
"Whether a Democrat, a Republican, a Conservative or a Liberal is in power, the opposing rhetoric spouted by the candidates apparently have little to do with who actually wins the elections: the decision makers who pull the strings stay the same, because cabinet seats are always held by CFR members. Even as U.S. presidents come and go, the CFR's power and agenda remain the same." --D. Estulin
"Our national purpose should be to abolish American nationality and to take some risks in order to invite others to pool their sovereignty with ours." --Kingman Brewster Jr., CFR, U.S. Ambassador to Britain
"Some even believe we are part of a secret cabal working against the best interests of the U.S., characterizing my family and me as "internationalists" and of conspiring with others around the world to build a more integrated global political and economic structure--one world, if you will. If that's the charge, I stand guilty, and I am proud of it." --David Rockefeller, Memoirs
"According to hundreds of U.S. State Department documents, the Soviet industrial and military capabilities such as trucking, aircraft, oil, steel, petrochemicals, aluminum, and computers were constructed at the U.S. taxpayers expense. As Sutton pointed out in 1972, "There was no such thing as Soviet technology."
"The 9/11 crisis made Canada and the U.S redefine the protection of their borders. The debt crisis in Mexico forced the government to adopt a new economic model. Crises...can force democratic governments to make difficult decisions like those that will be required to create a North American community. Its not that I want another 9/11 crisis, but having a crisis would force decisions that otherwise might not get made." --Robert Pastor, CFR, advocate of "North American Union".
"Dutch newspaper report from Algemeen Nederlands Persbureau declaring first Bilderberg meetings were financed by the CIA. February 10, 2007." [Of course the CIA is simply a creation and auxiliary of the international interrelated central bankers, just as the CFR, Trilateral Commission etc. are too.--Damien]
09 May, 2009
Priests of Power
Buffet Sees Massive Inflation to Handle Staggering Debt
The explosive rise of the U.S. budget deficit and debt burden will lead to serious inflation down the road, says billionaire and Obama supporter Warren Buffet. The Congressional Budget Office predicts that government debt will peak around 54% of GDP in 2011.
"A country that continuously expands its debt as a percentage of GDP and raises much of the money abroad to finance that, at some point, it's going to inflate its way out of the burden of that debt. Every country that has denominated its debt in its own currency and has found itself with uncomfortable amounts of debt relative to the rest of the world, in the end they inflate. That becomes a tax on everybody that has fixed dollar investments", Buffet explains:
http://moneynews.newsmax.com/headlines/warren_buffett/2009/05/04/210480.html?s=al&promo_code=7F1D-1
Of course if this projected scenario transpires the billionaire bankers of the Federal Reserve who engineered the inflation crisis will still remain billionaires, while only the proletarians will see their money deteriorate. The Federal Reserve Board of Governors consists of seven members--two posts are presently vacant.
"We are the priests of power." --1984
The explosive rise of the U.S. budget deficit and debt burden will lead to serious inflation down the road, says billionaire and Obama supporter Warren Buffet. The Congressional Budget Office predicts that government debt will peak around 54% of GDP in 2011.
"A country that continuously expands its debt as a percentage of GDP and raises much of the money abroad to finance that, at some point, it's going to inflate its way out of the burden of that debt. Every country that has denominated its debt in its own currency and has found itself with uncomfortable amounts of debt relative to the rest of the world, in the end they inflate. That becomes a tax on everybody that has fixed dollar investments", Buffet explains:
http://moneynews.newsmax.com/headlines/warren_buffett/2009/05/04/210480.html?s=al&promo_code=7F1D-1
Of course if this projected scenario transpires the billionaire bankers of the Federal Reserve who engineered the inflation crisis will still remain billionaires, while only the proletarians will see their money deteriorate. The Federal Reserve Board of Governors consists of seven members--two posts are presently vacant.
"Our society is run by insane people for insane objectives. I think we're being run my maniacs for maniacal ends and I think I'm liable to be put away as insane for expressing that. That's what's insane about it." --John Lennon
"We are the priests of power." --1984
16 April, 2009
Government-Bank Scheme
"No one pushed harder than Congressman Barney Frank to force banks and other financial institutions to reduce their mortgage lending standards, in order to meet government set goals for more home ownership. These lower mortgage lending standards are at the heart of the increased riskiness of the mortgage market and of the collapse of Wall Street securities based on these risky mortgages. Senator Christopher Dodd has played the same role in the Senate as Barney Frank played in the House of Representatives. [They] also voted for the very legislation that enabled contracted bonuses to be paid by companies like AIG that received government bailout money." --Thomas Sowell
http://www.theatheistconservative.com/tag/barneyfrank
"To force banks" is an exterior explanation obfuscating reality, since the U.S government is the agent of the Federal Reserve bankers in the first place, who intentionally engineered this upheaval while making it appear otherwise. Mr. Frank was one of their main political lackeys to implement their planned "recession" or "depression". The billions in "bail-out" money and bonuses received by these tycoons and their companies was reimbursement for their participation and collusion.
http://www.rollingstone.com/politics/story/26868968/the_dirty_dozen
"These two entities--Fannie Mae and Freddie Mac--are not facing any kind of financial crisis." --Barney Frank, 9-11-03. Mr. Frank was also involved in a homosexual relationship with Herb Moses, a senior executive at Fannie Mae.
http://www.theatheistconservative.com/tag/barneyfrank
"To force banks" is an exterior explanation obfuscating reality, since the U.S government is the agent of the Federal Reserve bankers in the first place, who intentionally engineered this upheaval while making it appear otherwise. Mr. Frank was one of their main political lackeys to implement their planned "recession" or "depression". The billions in "bail-out" money and bonuses received by these tycoons and their companies was reimbursement for their participation and collusion.
http://www.rollingstone.com/politics/story/26868968/the_dirty_dozen
"These two entities--Fannie Mae and Freddie Mac--are not facing any kind of financial crisis." --Barney Frank, 9-11-03. Mr. Frank was also involved in a homosexual relationship with Herb Moses, a senior executive at Fannie Mae.
02 April, 2009
FED $12.8 TRILLION
"The U.S. government and the Federal Reserve [same thing] have spent, lent or committed $12.8 trillion ...to stem the longest recession since the 1930's. The combined commitment has increased by 73% since November, when Bloomberg first estimated the funding, loans and guarantees at $7.4 trillion."
http://www.bloomberg.com/apps/news?pid=20601087&sid=armOzfkwtCA4&refer=home
"If it is enough, that will be great. If it is not enough, they will have to do more." -- Lloyd Blankfein, CEO Goldman Sachs
http://www.bloomberg.com/apps/news?pid=20601087&sid=armOzfkwtCA4&refer=home
"If it is enough, that will be great. If it is not enough, they will have to do more." -- Lloyd Blankfein, CEO Goldman Sachs
19 March, 2009
Fed Caused Great Depression
On March 18, 2009 the privately-owned Federal Reserve announced they will spend or print $1.2 trillion in their attempt to rectify the nation's economy. On hearing this news the U.S. dollar sank against other currencies, as traders worried about the long-term implications of this action, including probable inflation.
In 1913 Congressman Charles Lindbergh of Minnesota commented upon the passage of the Glass-Owen Federal Reserve Act: "The new law will create inflation whenever trusts want inflation. From now on, depressions will be scientifically created." Conspiracy researcher Gary Allen, author of 'None Dare Call it Conspiracy' revealed: "Between 1923 and 1929 the Federal Reserve expanded (inflated) the money supply by 62%."
In 2002, current Fed Chairman Ben Bernanke openly admitted to economist Milton Friedman that the Federal Reserve was the perpetrator of the 1929 economic catastrophe: http://earlytoday.wordpress.com/2008/10/05/bernanke-federal-reserve-caused-great-depression/
"Regarding the Great Depression. You're right, we did it."
06 March, 2009
Ordo ab Chao
'Order out of Chaos.'
The old motto of Freemasonry. On September 11, 1990 President George H. W. Bush announced in a speech the prospective for a "new world order". Then on another 11th of September 11 years later two jets, reportedly 'hijacked' by "islamic terrorists" slammed into the World Trade Center ushering in a global "war on terror".
And just this past January 12th, Mr. Henry Kissinger penned an editorial in the International Herald Tribune (the global edition of the New York Times) titled "The Chance for a New World Order."
What was once ridiculed for years as paranoid "conspiracy talk" by the "corporate-owned" mass media is now being proposed and spoken with candor by the agents of the Fed/CIA media complex. As Mr. Kissinger writes: "The alternative to a new international order is chaos."
He explains how the "economic crisis" has made it possible and imperative for the nations of the world to unite in "common action" by creating an "international political regulatory system." According to the logic of Mr. Kissinger, since the economic world has been globalized, so should the political organization of the world, for only then can future economic instabilities be rectified. Oh yeah, similar to how the proponents of the Federal Reserve in 1913 claimed that it would "prevent Depressions".
It appears from the evidence that this current economic downfall has been orchestrated by the very same people(bankers) who are now receiving the billions/trillions in "bailout" money at the expense of the masses and the nation. This is being done as Mr. Kissinger so subtly describes in his article to create a "new world order."
"The extraordinary impact of the president-elect on the imagination of humanity is an important element in shaping a new world order." --Kissinger
18 February, 2009
Meet the Ameros
The Wall Street Journal's "Market Watch" of Jan. 28, 2009 published an article by Todd "Harrison" titled: "Do We Need a North American Currency?--Uniting U.S., Canada, Mexico money could result from crisis."
http://www.marketwatch.com/search/?value=amero%20currency
What was once relegated by the Establishment as a 'conspiracy theory' is now being disseminated by the mainstream CIA media as a potential reality. The article proposes the possibility that the U.S., Canada and Mexico might coalesce their money into the 'Amero', as a consequence of the 'economic collapse'. Of course what he doesn't tell the people is that this 'crisis' is a coordinated plan intentionally impelled by the machinations of the central banking families, (just as they engineered the 1929 Great Depression) to despoil people's assets and induce social change. Mr. Harrison remarks:
"The New World Order is upon us, full of hope, promise and a fair amount of fear. The ability to combine Canadian natural resources, American ingenuity and cheap Mexican labor would allow North America to compete better on a global scale."
Just as the global central bankers united the numerous European nations into the European Union with the Euro, now they may attempt a similar scheme in North America according to the Rupert Murdoch controlled Wall Street Journal. If they succeed in implementing this hypothetical design, then the ultimate conclusion will be the transformation of America/Canada over the ensuing decades into a pervasive third-world socioeconomic environment.
http://www.marketwatch.com/search/?value=amero%20currency
What was once relegated by the Establishment as a 'conspiracy theory' is now being disseminated by the mainstream CIA media as a potential reality. The article proposes the possibility that the U.S., Canada and Mexico might coalesce their money into the 'Amero', as a consequence of the 'economic collapse'. Of course what he doesn't tell the people is that this 'crisis' is a coordinated plan intentionally impelled by the machinations of the central banking families, (just as they engineered the 1929 Great Depression) to despoil people's assets and induce social change. Mr. Harrison remarks:
"The New World Order is upon us, full of hope, promise and a fair amount of fear. The ability to combine Canadian natural resources, American ingenuity and cheap Mexican labor would allow North America to compete better on a global scale."
Just as the global central bankers united the numerous European nations into the European Union with the Euro, now they may attempt a similar scheme in North America according to the Rupert Murdoch controlled Wall Street Journal. If they succeed in implementing this hypothetical design, then the ultimate conclusion will be the transformation of America/Canada over the ensuing decades into a pervasive third-world socioeconomic environment.
05 February, 2009
Sirhan Sirhan
"The CIA owns everyone of any significance in the major media." --William Colby, CIA Director
The CIA-controlled mass-media wants the masses to believe that another "lone nut" in the shape of Sirhan Sirhan blew away RFK. Sirhan himself claims he remembers nothing of the actual shooting and to this day maintains his innocence. The gun Sirhan supposedly fired could only contain eight bullets, yet 13 were discovered at the crime scene, while the bullet that fatally wounded Kennedy was lodged in the back of his skull, in spite of Sirhan being in front of him. The LAPD discarded the forensic evidence thus preventing any future investigation.
Dr. Eduard Simpson examined Sirhan in prison and believed he had been hypnotized. Ex FBI-agent William Turner lent his support to the theory that Sirhan was a "Manchurian Candidate". The CIA's MK-ULTRA program investigated the feasibility of programming assassins who would not remember being programmed. The Artichoke project is described in somewhat censored memo of 1954:
"Can an individual be made to perform an act of attempted assassination involuntarily under the influence of ARTICHOKE? As a 'trigger mechanism' for a bigger project, it was proposed that an individual be induced to perform an act involuntarily, of attempted assassination against a prominent figure. After the act was performed, it was assumed that the SUBJECT would be taken into custody and thereby disposed of."
Evidence supports that Sirhan was a CIA-brainwashed assassin programmed by Dr. William Bryan of MK-ULTRA and "handled" by a mysterious woman in a polka-dot dress. Half a dozen witnesses reported seeing her fleeing the scene screaming "We shot him!". Sirhan's last memory prior to the shooting was of drinking coffee with a woman, who he said wore a polka-dot dress. The woman gave Sirhan his final preparations, using techniques mastered under the CIA hypnosis program MK-ULTRA.
We know beyond a reasonable doubt that the FED-CIA complex eliminated JFK because he was planning the dismantlement of the CIA and the authorization of Congress to begin printing the nation's currency instead of the privately-owned Federal Reserve. To be certain and not to risk being exposed for executing JFK or have RFK attempt the same actions as his brother they slayed him before he could get elected. The key to their perpetual power is their selection of obedient slaves in public office, like FDR, LBJ, Reagan, Bush, Obama etc..
The CIA-controlled mass-media wants the masses to believe that another "lone nut" in the shape of Sirhan Sirhan blew away RFK. Sirhan himself claims he remembers nothing of the actual shooting and to this day maintains his innocence. The gun Sirhan supposedly fired could only contain eight bullets, yet 13 were discovered at the crime scene, while the bullet that fatally wounded Kennedy was lodged in the back of his skull, in spite of Sirhan being in front of him. The LAPD discarded the forensic evidence thus preventing any future investigation.
Dr. Eduard Simpson examined Sirhan in prison and believed he had been hypnotized. Ex FBI-agent William Turner lent his support to the theory that Sirhan was a "Manchurian Candidate". The CIA's MK-ULTRA program investigated the feasibility of programming assassins who would not remember being programmed. The Artichoke project is described in somewhat censored memo of 1954:
"Can an individual be made to perform an act of attempted assassination involuntarily under the influence of ARTICHOKE? As a 'trigger mechanism' for a bigger project, it was proposed that an individual be induced to perform an act involuntarily, of attempted assassination against a prominent figure. After the act was performed, it was assumed that the SUBJECT would be taken into custody and thereby disposed of."
Evidence supports that Sirhan was a CIA-brainwashed assassin programmed by Dr. William Bryan of MK-ULTRA and "handled" by a mysterious woman in a polka-dot dress. Half a dozen witnesses reported seeing her fleeing the scene screaming "We shot him!". Sirhan's last memory prior to the shooting was of drinking coffee with a woman, who he said wore a polka-dot dress. The woman gave Sirhan his final preparations, using techniques mastered under the CIA hypnosis program MK-ULTRA.
We know beyond a reasonable doubt that the FED-CIA complex eliminated JFK because he was planning the dismantlement of the CIA and the authorization of Congress to begin printing the nation's currency instead of the privately-owned Federal Reserve. To be certain and not to risk being exposed for executing JFK or have RFK attempt the same actions as his brother they slayed him before he could get elected. The key to their perpetual power is their selection of obedient slaves in public office, like FDR, LBJ, Reagan, Bush, Obama etc..
04 February, 2009
The West and Islam
Briefly, each nation is occupied by a central bank, wherein exists the true power base which commands the entire political, economic and media machinery of a state.
They who control the credit of the nation direct the policy of the government and hold in the hollow of their hands the destiny of the people. --Reginald McKenna, British Chancellor of the Exchequer 1915-16
Islam is a threat only insofar as the West wants it to be. The western governments possess sufficient economic and military might to prevent muslims from entering their nations. But even though the CIA controlled mass-media propaganda continuously repeats that the West is involved in a "war on terror" with fanatical Islam, they clandestinely desire islamic immigration so they can exploit it to further their police-state environment in pursuance of a regressive slave-society. The end justifies the means.
The Machiavellian State can benefit from the presence of muslims in two primary ways. The first stratagem resides in allowing them entry in expected anticipation of an actual 'terrorist attack', so they can capitalize upon it and expand their totalitarian agenda. The NSA and CIA knows what the islamic-jihadist creed teaches and that most of the muslim world perceives America as the "Great Satan" deserving of ruin, due to U.S. interference and machinations. Hence no intelligent government would willingly permit millions of potential terrorist risks into the "homeland", along with neglecting to assiduously secure America's borders, unless the State has ulterior designs or motives. The other method is where the State itself commits the terrorism(911) and then accordingly incriminates the selected fabricated muslim scapegoats.
Whichever modus operandi they employ, the sole beneficiary is the State, as the covert Federal Reserve/Council on Foreign Relations cabal increase their socioeconomic power through new liberty destroying legislation which forces people to be searched at airports and spied upon etc. The main tactic of the 'war on terror' is not to combat Al-Qaeda(a CIA creation/invention), but to psychologically condition the masses into viewing the State as their benevolent protector, while sporadically releasing CIA produced audio/video tapes of "bin-laden" condemning the West. They will only attempt to augment their power as the years progress until the whole nation becomes a third-world version of Orwell's dystopian 1984.
They who control the credit of the nation direct the policy of the government and hold in the hollow of their hands the destiny of the people. --Reginald McKenna, British Chancellor of the Exchequer 1915-16
Islam is a threat only insofar as the West wants it to be. The western governments possess sufficient economic and military might to prevent muslims from entering their nations. But even though the CIA controlled mass-media propaganda continuously repeats that the West is involved in a "war on terror" with fanatical Islam, they clandestinely desire islamic immigration so they can exploit it to further their police-state environment in pursuance of a regressive slave-society. The end justifies the means.
The Machiavellian State can benefit from the presence of muslims in two primary ways. The first stratagem resides in allowing them entry in expected anticipation of an actual 'terrorist attack', so they can capitalize upon it and expand their totalitarian agenda. The NSA and CIA knows what the islamic-jihadist creed teaches and that most of the muslim world perceives America as the "Great Satan" deserving of ruin, due to U.S. interference and machinations. Hence no intelligent government would willingly permit millions of potential terrorist risks into the "homeland", along with neglecting to assiduously secure America's borders, unless the State has ulterior designs or motives. The other method is where the State itself commits the terrorism(911) and then accordingly incriminates the selected fabricated muslim scapegoats.
Whichever modus operandi they employ, the sole beneficiary is the State, as the covert Federal Reserve/Council on Foreign Relations cabal increase their socioeconomic power through new liberty destroying legislation which forces people to be searched at airports and spied upon etc. The main tactic of the 'war on terror' is not to combat Al-Qaeda(a CIA creation/invention), but to psychologically condition the masses into viewing the State as their benevolent protector, while sporadically releasing CIA produced audio/video tapes of "bin-laden" condemning the West. They will only attempt to augment their power as the years progress until the whole nation becomes a third-world version of Orwell's dystopian 1984.
16 November, 2008
G20 Won't Change This Financial Crime Scene
G20 Won't Change This Financial Crime Scene
By Richard C. Cook
Author of the forthcoming book, We Hold These Truths: The Hope of Monetary Reform
Please order the book at:
http://www.tendrilpress.com/
Remarks by Richard C. Cook
George Mason University, Fairfax, Virginia
November 15, 2008
The G20 is meeting today in Washington, D.C., to discuss the world financial crisis, its causes, and what can be done about it. But this won’t help the people of the U.S. who have been victimized by their own financial system.
The stated objectives are to find ways to stabilize and reduce speculation in the financial markets and make financial transactions more transparent, more efficient, and more international in scope. But this is also a revolt by the nations of the world against over-reliance on the U.S. dollar as the world’s reserve currency. What we are likely to see over time is a multi-currency regime that includes the Euro and one or more Asian currencies as well.
But the conference will not address the real causes of why the world is heading into a global recession or why the U.S. economy in particular is in such dire straits. Nor will the meeting result in redress of the staggering level of bankers’ criminality abetted by the U.S. government in the creation of the financial bubbles whose collapse is underway.
The real problem is that the world is locked into a debt-based financial system run by the world’s banks, where the only way currency can be entered into circulation is through lending. It’s been massive amounts of completely irresponsible lending which have leveraged the bubbles against much smaller amounts of tangible value.
The GDP of the entire world is $55 trillion. This is dwarfed by speculative lending in the derivatives markets of ten times that amount--$525-$550 trillion. No nation has clean hands in this travesty. The governments of the world and the central banks have allowed it to come into being.
Within the U.S., reliance on money-creation through bank lending has been the problem since the creation of the Federal Reserve System in 1913. At that point the U.S. monetary system was privatized. The case has been the same with all the other nations which have private banking systems that control their central banks. The granddaddy is the Bank of England which dates from 1694.
The creation of the Federal Reserve System marked the start of a century of world war. This is hardly a coincidence. Indeed, the central banking system encourages wars and lives off them, because it is war and the threat of war that is most profitable to a system where the more money governments borrow the more profits the banks make.
All this started with World War I, which was largely financed by the British, French, German, and the U.S. banks. Events have continued in that vein through today, where the nations of the world are armed to the teeth and global finance capitalism tries to increase its control everywhere to the detriment of workers, national economies, and the environment.
To try to fix the crisis through bailing out the system, we are now seeing in the U.S. and Europe levels of government borrowing that have not been experienced since World War II. The purpose is to recapitalize a financial system that has destroyed itself through its own greed and folly. But all this does is defer the bill to future generations who have to pay the enormous compounded interest charges this borrowing entails. Interest on the national debt in the 2009 federal budget is over $500 billion. Every man, woman, and child in the nation is a victim of this crime.
The situation is so bad that many people believe the U.S. may even be in danger of defaulting on its gigantic national debt sometime in 2009.
Meanwhile, the failed financial system is dragging down the world’s producing economy with it, and the bailouts won’t change that situation. Combined with the financial crash has been a collapse in consumer “demand.” In other words, consumers, who are maxed out on their credit, no longer can borrow enough to keep the wheels of the economy turning.
But the reason they must borrow for consumption is that earnings are not sufficient for people to buy what they need to live. This is why in the U.S. there has been an outcry, including with the Obama campaign, for new government job-creation programs. Every day there is another proposal by progressives for new government spending, which, of course, will have to be financed by even more government debt.
So when are we going to learn how to introduce purchasing power without debt? How did we ever come to believe that the only way to create money is through a bank inventing it out of thin air? In the past few weeks we have had a number of Nobel-prize winning economists chip in with their suggestions of what to do, but none have addressed the obvious question of what the alternatives may be to bankers’ debt-based currency.
If we look at history, we see other ways governments have used their powers to create money. Indeed, until the Federal Reserve Act of 1913, the U.S. was a kind of laboratory of alternative methods of money-creation.
If we go back to colonial days, the American colonies used a variety of means to introduce currency into circulation. In Virginia, plantation owners received tobacco certificates when they deposited their product at public warehouses. The certificates then circulated as currency.
In Pennsylvania the government ran a land bank which paid cash to land-owners for liens on property. The interest paid for the costs of government without any taxation of citizens.
In Massachusetts, Pennsylvania, and elsewhere, governments spent paper money directly into circulation. The money received value by then being accepted by those governments, after it circulated within the economy, in payment of taxes.
Other forms of currency were Spanish dollars, Indian wampum, and IOUs. There was also a flourishing barter trade.
The system worked. By 1764, the American colonies formed one of the most prosperous trading regions on the planet. When asked why, Benjamin Franklin said it was because of colonial scrip—i.e., their paper money. When the British Parliament outlawed it through the Currency Act of 1764, an economic depression followed. It was the underlying cause of the Revolutionary War.
During that war, the Continental Congress issued the famous Continental Currency. What likely caused that money to inflate was extensive British counterfeiting, not being used to excess by our national government.
Once the nation became independent, a U.S. mint was founded so individuals could bring in gold or silver and have it stamped into coinage free of charge. New discoveries as with the California and Yukon gold rushes or better methods of extraction from ores resulted in economic booms. From then until coinage lost its value after the Federal Reserve System was established, precious metals were a major part of the U.S. monetary system that included not only coinage but also gold and silver certificates.
In 1791 and again in 1816 Congress passed legislation for the First and Second Banks of the United States. These banks were dupicates of the Bank of England whose purposes were to fasten on the U.S. the same type of debt-based monetary system that was the driving force for the British Empire. Presidents Thomas Jefferson, James Madison, Andrew Jackson, and Martin van Buren were among those who saw these banks as a Trojan Horse for financier tyranny. The split between pro- and anti-bank forces was the origin of the two-party system within the United States.
When Jefferson became president in 1800 he refused to borrow from the bank and balanced the federal budget for eight consecutive years by cutting military expenditures. Andrew Jackson took similar action in 1833 when he withdrew federal funds from the bank and paid off the entire national debt. It was recognized back then that fiscal responsibility was an effective means for keeping the government out of the control of the bankers and their political friends.
When the Civil War broke out in 1861, President Abraham Lincoln refused to borrow from the banks. Instead he financed the war through income and excise taxes, sale of war bonds directly to citizens, and issuance of the famous Greenbacks. This came about in 1862 when Congress authorized the government to spend $450 million in paper Greenbacks directly into circulation. Congress also introduced tangible value into the economy by what was then the very wise policy of transferring huge amounts of public land to the railroads and to citizens under the Homestead Act.
During the late 19th century, ordinary citizens were not so stunningly ignorant of the politics of money as they are today. People recognized the Greenbacks for having saved the union. A Greenback Party was formed that elected representatives to Congress and ran candidates for president.
Greenbacks remained in circulation, and as late as 1900 still made up a third of the nation’s monetary supply, along with coinage, gold and silver certificates, and national bank notes. Also, many other business entities, including the “company stores” owned by mining companies, issued their own paper scrip that was part of the circulating currency. For example, in a pamphlet on monetary reform written by American poet Ezra Pound in the 1930s was an illustration of paper money his grandfather issued from his lumberyard in Michigan in the late 1800s backed by board-feet of lumber payable on demand! Of course barter trade continued and still exists today among industrial firms.
But the bankers were on the move. In 1863 and 1864 Congress passed the National Banking Acts which drove the extensive system of state-chartered banks, including some owned by state governments, out of existence. By the early 1900s, the power of the bankers had coalesced under the New York banking trust led by the J.P. Morgan and Rockefeller financial interests.
The bakers struck in 1913 just before the Christmas recess when many Congressmen had already left Washington for the holidays. The Federal Reserve Act had actually been written by bankers from Europe who were allied with the Rothschild interests. Congressman Charles Lindbergh, Sr., father of the aviator, called the Act “the legislative crime of the ages.” Later President Woodrow Wilson, who signed the Act, said he had “unwittingly ruined my nation.”
But the deed was done. The Federal Reserve System created the first major financial bubble through World War I spending, followed by a depression, then created and burst the stock market bubble whose collapse started the Great Depression in 1929. President Franklin D. Roosevelt took over credit creation through low-cost government lending in the 1930s but had to use World War II to achieve full employment because by then the government was totally locked into the Keynesian tax-and-borrow credo of public finance.
The bankers began their comeback in the 1950s and consolidated their power in the 1970s under the heading of “monetarism,” which is the philosophy of trying to control the economy through raising and lowering of interest rates. This travesty—which is really institutionalized usury—is as familiar to us today as the water a fish swims in. We don’t even notice it. Yet it’s this system that has ruined the world. Ever since the 1970s, every period of economic growth in the U.S. has been a bank-created bubble followed by a crash and a recession.
We had the inflation of the 1970s created by the government-induced oil prices shocks, followed by the Paul Volcker crash of 1979-83 when the Federal Reserve raised interest rates above twenty percent and caused the biggest downturn since the Great Depression.
During the later Reagan years we had the merger-acquisition bubble followed by the recession that brought Bill Clinton to office in 1992. Then we had the dot.com bubble of the mid- to late-1990s that ended with the crash of 2000-2001.
Next, instead, of rebuilding an economy that had been devastated by export of our best manufacturing jobs to China and other cheap-labor countries, the Federal Reserve under chairman Alan Greenspan, with assistance from the George W. Bush administration, created the biggest bubble economy in history, with the housing, commercial real estate, equity, hedge fund, derivatives, and commodities bubbles all blowing up at the same time and leaving us with the mess we are in today.
What has happened during the Bush administration has been the greatest crime against the public interest in U.S. history. Its effects are only starting to be evident.
Of course in the face of so many disasters, the credit markets have imploded, and governments don’t know what to do except recapitalize and restructure them but without taking action to address the deep systemic problems with the producing economy. And while the Europeans may have blown the whistle on U.S. excesses through the G20 meeting, this country still faces disaster.
Yes, Wall Street is killing Main Street, and no one has come up with an answer except suggestions for the bailouts and some New Deal-type programs in an environment that is much worse even than in the 1930s. For one thing, most of what we consume today is produced abroad. For another, family farming has been ruined. In a pinch, our nation could no longer even feed itself.
But the amazing thing is how easy it would be to salvage the situation if the government took the simple step of treating credit as what it really is—a public utility like clean air, water, or electricity, not the private property of the banking system. In fact the banking system and the politicians they own have stolen and abused this fundamental piece of the social commons.
Banks have no legal right to work against the public interest. Every single bank that has ever existed has operated under a public charter. The Constitution gives Congress—i.e., the people’s representative government—authority to regulate interstate commerce. It also gives Congress the right and responsibility to control the monetary system.
So why doesn’t Congress do it? Why does Congress sit passively and stare when Federal Reserve chairmen such as Alan Greenspan or Ben Bernanke sit before them and mumble nonsense about markets and interest rates and inflation and the rest of a made-up system whose main result is to funnel the wealth of the economy upwards into the hands of the financial elite?
In my writings I have advocated several measures Congress could take immediately to remedy the catastrophe we are facing:
1. Congress could authorize direct expenditure of government funds for legitimate public expenses, as was done with the Civil War-era Greenbacks. Contrary to bankers’ propaganda, the Greenbacks were not inflationary then and would not be inflationary now, because they would be backed by tangible economic production of goods and services. What has been inflationary has been the debt-based currency which, since it was introduced in 1913, has caused the dollar to lose 95 percent of its value. Greenback-type spending is contained in the proposed American Monetary Act, developed by the American Monetary Institute.
2. Congress could authorize a national infrastructure bank that would be self-capitalized and would lend money into existence to state and local governments at zero percent interest. Legislation for such a bank has been introduced by Congressman Dennis Kucinich.
3. Congress could authorize dividend payments to citizens as advocated by the Social Credit movement founded by Major C.H. Douglas of Great Britain decades ago as a means of monetizing the net appreciation of the producing economy. Dividends exceeding $1,000 a month could be issued from a national dividend account without recourse to taxation or borrowing. Such a concept is related to the Alaska Permanent Fund which paid over $3,200 to each state resident in 2008 and to the concept of a basic income guarantee advocated by proponents of the negative income tax in years past.
4. Congress could utilize dividend payments once they were spent, possibly in the form of vouchers for necessities of life like food and housing, to capitalize a new network of community savings banks that would provide low-cost credit to home purchasers, students, small business people, and local farms.
I worked in the U.S. Treasury Department for 21 years and learned first-hand the history and operations of public finance in the U.S. I have seen the disastrous results of the debt-based financial system and how it has driven our nation, government, and people into bankruptcy. I have also seen how these simple measures of monetary reform would be easy to implement and would begin to turn the situation around within weeks or months.
All it takes is political will and a determination to challenge the death-grip the financial elite has had on our economy for a century.
We can be quite certain that these vital issues will not be addressed by the summit of the G20 meeting in Washington today. If anything, these meetings are likely to render the grip of private finance on the peoples of the world even tighter than before.
But sooner or later change must come. For the immediate future people could fight back by doing everything possible to get out of debt, convert their cash reserves to tangible holdings, and start their own local currency and barter systems. But for real change, a monetary revolution is required.
Copyright © 2008 by Richard C. Cook
Richard C. Cook is a former U.S. federal government analyst and an advocate for economic democracy and sustainability. His new book, We Hold These Truths: The Hope of Monetary Reform, can now be ordered for $19.95 from www.tendrilpress.com.
By Richard C. Cook
Author of the forthcoming book, We Hold These Truths: The Hope of Monetary Reform
Please order the book at:
http://www.tendrilpress.com/
Remarks by Richard C. Cook
George Mason University, Fairfax, Virginia
November 15, 2008
The G20 is meeting today in Washington, D.C., to discuss the world financial crisis, its causes, and what can be done about it. But this won’t help the people of the U.S. who have been victimized by their own financial system.
The stated objectives are to find ways to stabilize and reduce speculation in the financial markets and make financial transactions more transparent, more efficient, and more international in scope. But this is also a revolt by the nations of the world against over-reliance on the U.S. dollar as the world’s reserve currency. What we are likely to see over time is a multi-currency regime that includes the Euro and one or more Asian currencies as well.
But the conference will not address the real causes of why the world is heading into a global recession or why the U.S. economy in particular is in such dire straits. Nor will the meeting result in redress of the staggering level of bankers’ criminality abetted by the U.S. government in the creation of the financial bubbles whose collapse is underway.
The real problem is that the world is locked into a debt-based financial system run by the world’s banks, where the only way currency can be entered into circulation is through lending. It’s been massive amounts of completely irresponsible lending which have leveraged the bubbles against much smaller amounts of tangible value.
The GDP of the entire world is $55 trillion. This is dwarfed by speculative lending in the derivatives markets of ten times that amount--$525-$550 trillion. No nation has clean hands in this travesty. The governments of the world and the central banks have allowed it to come into being.
Within the U.S., reliance on money-creation through bank lending has been the problem since the creation of the Federal Reserve System in 1913. At that point the U.S. monetary system was privatized. The case has been the same with all the other nations which have private banking systems that control their central banks. The granddaddy is the Bank of England which dates from 1694.
The creation of the Federal Reserve System marked the start of a century of world war. This is hardly a coincidence. Indeed, the central banking system encourages wars and lives off them, because it is war and the threat of war that is most profitable to a system where the more money governments borrow the more profits the banks make.
All this started with World War I, which was largely financed by the British, French, German, and the U.S. banks. Events have continued in that vein through today, where the nations of the world are armed to the teeth and global finance capitalism tries to increase its control everywhere to the detriment of workers, national economies, and the environment.
To try to fix the crisis through bailing out the system, we are now seeing in the U.S. and Europe levels of government borrowing that have not been experienced since World War II. The purpose is to recapitalize a financial system that has destroyed itself through its own greed and folly. But all this does is defer the bill to future generations who have to pay the enormous compounded interest charges this borrowing entails. Interest on the national debt in the 2009 federal budget is over $500 billion. Every man, woman, and child in the nation is a victim of this crime.
The situation is so bad that many people believe the U.S. may even be in danger of defaulting on its gigantic national debt sometime in 2009.
Meanwhile, the failed financial system is dragging down the world’s producing economy with it, and the bailouts won’t change that situation. Combined with the financial crash has been a collapse in consumer “demand.” In other words, consumers, who are maxed out on their credit, no longer can borrow enough to keep the wheels of the economy turning.
But the reason they must borrow for consumption is that earnings are not sufficient for people to buy what they need to live. This is why in the U.S. there has been an outcry, including with the Obama campaign, for new government job-creation programs. Every day there is another proposal by progressives for new government spending, which, of course, will have to be financed by even more government debt.
So when are we going to learn how to introduce purchasing power without debt? How did we ever come to believe that the only way to create money is through a bank inventing it out of thin air? In the past few weeks we have had a number of Nobel-prize winning economists chip in with their suggestions of what to do, but none have addressed the obvious question of what the alternatives may be to bankers’ debt-based currency.
If we look at history, we see other ways governments have used their powers to create money. Indeed, until the Federal Reserve Act of 1913, the U.S. was a kind of laboratory of alternative methods of money-creation.
If we go back to colonial days, the American colonies used a variety of means to introduce currency into circulation. In Virginia, plantation owners received tobacco certificates when they deposited their product at public warehouses. The certificates then circulated as currency.
In Pennsylvania the government ran a land bank which paid cash to land-owners for liens on property. The interest paid for the costs of government without any taxation of citizens.
In Massachusetts, Pennsylvania, and elsewhere, governments spent paper money directly into circulation. The money received value by then being accepted by those governments, after it circulated within the economy, in payment of taxes.
Other forms of currency were Spanish dollars, Indian wampum, and IOUs. There was also a flourishing barter trade.
The system worked. By 1764, the American colonies formed one of the most prosperous trading regions on the planet. When asked why, Benjamin Franklin said it was because of colonial scrip—i.e., their paper money. When the British Parliament outlawed it through the Currency Act of 1764, an economic depression followed. It was the underlying cause of the Revolutionary War.
During that war, the Continental Congress issued the famous Continental Currency. What likely caused that money to inflate was extensive British counterfeiting, not being used to excess by our national government.
Once the nation became independent, a U.S. mint was founded so individuals could bring in gold or silver and have it stamped into coinage free of charge. New discoveries as with the California and Yukon gold rushes or better methods of extraction from ores resulted in economic booms. From then until coinage lost its value after the Federal Reserve System was established, precious metals were a major part of the U.S. monetary system that included not only coinage but also gold and silver certificates.
In 1791 and again in 1816 Congress passed legislation for the First and Second Banks of the United States. These banks were dupicates of the Bank of England whose purposes were to fasten on the U.S. the same type of debt-based monetary system that was the driving force for the British Empire. Presidents Thomas Jefferson, James Madison, Andrew Jackson, and Martin van Buren were among those who saw these banks as a Trojan Horse for financier tyranny. The split between pro- and anti-bank forces was the origin of the two-party system within the United States.
When Jefferson became president in 1800 he refused to borrow from the bank and balanced the federal budget for eight consecutive years by cutting military expenditures. Andrew Jackson took similar action in 1833 when he withdrew federal funds from the bank and paid off the entire national debt. It was recognized back then that fiscal responsibility was an effective means for keeping the government out of the control of the bankers and their political friends.
When the Civil War broke out in 1861, President Abraham Lincoln refused to borrow from the banks. Instead he financed the war through income and excise taxes, sale of war bonds directly to citizens, and issuance of the famous Greenbacks. This came about in 1862 when Congress authorized the government to spend $450 million in paper Greenbacks directly into circulation. Congress also introduced tangible value into the economy by what was then the very wise policy of transferring huge amounts of public land to the railroads and to citizens under the Homestead Act.
During the late 19th century, ordinary citizens were not so stunningly ignorant of the politics of money as they are today. People recognized the Greenbacks for having saved the union. A Greenback Party was formed that elected representatives to Congress and ran candidates for president.
Greenbacks remained in circulation, and as late as 1900 still made up a third of the nation’s monetary supply, along with coinage, gold and silver certificates, and national bank notes. Also, many other business entities, including the “company stores” owned by mining companies, issued their own paper scrip that was part of the circulating currency. For example, in a pamphlet on monetary reform written by American poet Ezra Pound in the 1930s was an illustration of paper money his grandfather issued from his lumberyard in Michigan in the late 1800s backed by board-feet of lumber payable on demand! Of course barter trade continued and still exists today among industrial firms.
But the bankers were on the move. In 1863 and 1864 Congress passed the National Banking Acts which drove the extensive system of state-chartered banks, including some owned by state governments, out of existence. By the early 1900s, the power of the bankers had coalesced under the New York banking trust led by the J.P. Morgan and Rockefeller financial interests.
The bakers struck in 1913 just before the Christmas recess when many Congressmen had already left Washington for the holidays. The Federal Reserve Act had actually been written by bankers from Europe who were allied with the Rothschild interests. Congressman Charles Lindbergh, Sr., father of the aviator, called the Act “the legislative crime of the ages.” Later President Woodrow Wilson, who signed the Act, said he had “unwittingly ruined my nation.”
But the deed was done. The Federal Reserve System created the first major financial bubble through World War I spending, followed by a depression, then created and burst the stock market bubble whose collapse started the Great Depression in 1929. President Franklin D. Roosevelt took over credit creation through low-cost government lending in the 1930s but had to use World War II to achieve full employment because by then the government was totally locked into the Keynesian tax-and-borrow credo of public finance.
The bankers began their comeback in the 1950s and consolidated their power in the 1970s under the heading of “monetarism,” which is the philosophy of trying to control the economy through raising and lowering of interest rates. This travesty—which is really institutionalized usury—is as familiar to us today as the water a fish swims in. We don’t even notice it. Yet it’s this system that has ruined the world. Ever since the 1970s, every period of economic growth in the U.S. has been a bank-created bubble followed by a crash and a recession.
We had the inflation of the 1970s created by the government-induced oil prices shocks, followed by the Paul Volcker crash of 1979-83 when the Federal Reserve raised interest rates above twenty percent and caused the biggest downturn since the Great Depression.
During the later Reagan years we had the merger-acquisition bubble followed by the recession that brought Bill Clinton to office in 1992. Then we had the dot.com bubble of the mid- to late-1990s that ended with the crash of 2000-2001.
Next, instead, of rebuilding an economy that had been devastated by export of our best manufacturing jobs to China and other cheap-labor countries, the Federal Reserve under chairman Alan Greenspan, with assistance from the George W. Bush administration, created the biggest bubble economy in history, with the housing, commercial real estate, equity, hedge fund, derivatives, and commodities bubbles all blowing up at the same time and leaving us with the mess we are in today.
What has happened during the Bush administration has been the greatest crime against the public interest in U.S. history. Its effects are only starting to be evident.
Of course in the face of so many disasters, the credit markets have imploded, and governments don’t know what to do except recapitalize and restructure them but without taking action to address the deep systemic problems with the producing economy. And while the Europeans may have blown the whistle on U.S. excesses through the G20 meeting, this country still faces disaster.
Yes, Wall Street is killing Main Street, and no one has come up with an answer except suggestions for the bailouts and some New Deal-type programs in an environment that is much worse even than in the 1930s. For one thing, most of what we consume today is produced abroad. For another, family farming has been ruined. In a pinch, our nation could no longer even feed itself.
But the amazing thing is how easy it would be to salvage the situation if the government took the simple step of treating credit as what it really is—a public utility like clean air, water, or electricity, not the private property of the banking system. In fact the banking system and the politicians they own have stolen and abused this fundamental piece of the social commons.
Banks have no legal right to work against the public interest. Every single bank that has ever existed has operated under a public charter. The Constitution gives Congress—i.e., the people’s representative government—authority to regulate interstate commerce. It also gives Congress the right and responsibility to control the monetary system.
So why doesn’t Congress do it? Why does Congress sit passively and stare when Federal Reserve chairmen such as Alan Greenspan or Ben Bernanke sit before them and mumble nonsense about markets and interest rates and inflation and the rest of a made-up system whose main result is to funnel the wealth of the economy upwards into the hands of the financial elite?
In my writings I have advocated several measures Congress could take immediately to remedy the catastrophe we are facing:
1. Congress could authorize direct expenditure of government funds for legitimate public expenses, as was done with the Civil War-era Greenbacks. Contrary to bankers’ propaganda, the Greenbacks were not inflationary then and would not be inflationary now, because they would be backed by tangible economic production of goods and services. What has been inflationary has been the debt-based currency which, since it was introduced in 1913, has caused the dollar to lose 95 percent of its value. Greenback-type spending is contained in the proposed American Monetary Act, developed by the American Monetary Institute.
2. Congress could authorize a national infrastructure bank that would be self-capitalized and would lend money into existence to state and local governments at zero percent interest. Legislation for such a bank has been introduced by Congressman Dennis Kucinich.
3. Congress could authorize dividend payments to citizens as advocated by the Social Credit movement founded by Major C.H. Douglas of Great Britain decades ago as a means of monetizing the net appreciation of the producing economy. Dividends exceeding $1,000 a month could be issued from a national dividend account without recourse to taxation or borrowing. Such a concept is related to the Alaska Permanent Fund which paid over $3,200 to each state resident in 2008 and to the concept of a basic income guarantee advocated by proponents of the negative income tax in years past.
4. Congress could utilize dividend payments once they were spent, possibly in the form of vouchers for necessities of life like food and housing, to capitalize a new network of community savings banks that would provide low-cost credit to home purchasers, students, small business people, and local farms.
I worked in the U.S. Treasury Department for 21 years and learned first-hand the history and operations of public finance in the U.S. I have seen the disastrous results of the debt-based financial system and how it has driven our nation, government, and people into bankruptcy. I have also seen how these simple measures of monetary reform would be easy to implement and would begin to turn the situation around within weeks or months.
All it takes is political will and a determination to challenge the death-grip the financial elite has had on our economy for a century.
We can be quite certain that these vital issues will not be addressed by the summit of the G20 meeting in Washington today. If anything, these meetings are likely to render the grip of private finance on the peoples of the world even tighter than before.
But sooner or later change must come. For the immediate future people could fight back by doing everything possible to get out of debt, convert their cash reserves to tangible holdings, and start their own local currency and barter systems. But for real change, a monetary revolution is required.
Copyright © 2008 by Richard C. Cook
Richard C. Cook is a former U.S. federal government analyst and an advocate for economic democracy and sustainability. His new book, We Hold These Truths: The Hope of Monetary Reform, can now be ordered for $19.95 from www.tendrilpress.com.
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