There is a lot of daily news cluttering the landscape and to escape this, we have to go to the past. Seeing things from further back in time gives us perspective and we need this, otherwise, we imagine that what is happening is new rather than old. Although many writers are now focusing on the Great Depression, I find that a lot of material from the post-WWII period is even more revealing since we are still in that particular matrix.
It seems, the battle between the private Federal Reserve and our Presidents and Congress was very unsettled after the total catastrophe of the Roaring 20′s and Great Depression. The Federal Reserve was shown to be a total disaster, utterly incompetent and in grave need of reform if not, outright elimination. Below is a letter written by the Fed Chairman to President Truman in January, 1951:
The problem of an independent agency of the United States Government is again being highlighted by the current discussions about the relative roles of the Federal Reserve System and the U.S. Treasury. A great deal of nonsense is being talked about. No agency is made independent in order to stake it possible to alter or sabotage the policies of the government of which it is a part.
The Fed Reserve archives doesn’t make clear, who this memo is for. Evidently, Truman was bent on bringing the Federal Reserve out of the shadows and into the political process of our Republic. This irritated the Fed Reserve no end. They were free to do as they pleased! That is TREMENDOUS POWER.
The Federal Deserve is not seeking independence in the sense of being apart from political responsibility, which was the original concept, but is seeking an active role in the management of the public debt, without any commensurate responsibility for the outcome.
Such utter arrogance! The Fed Reserve doesn’t want to be ‘independent’—although its ancient rights as a totally independent life form inside the US government was INTENDED by the bankers who own and control the Federal Reserve—well! The Fed chief is telling the puppet President, all the bankers are trying to do is MANAGE our debts! While washing their hands of all blame.
That is, the bankers will control the budget OVER THE HEADS OF CONGRESS and will dictate terms to the President. And then vanish back into the shadows and let Congress and the President take all the knocks for the effects created by these shadow bankers! And we are a republic? Would the Chairman of the Board of Governors of the Federal Reserve System like to be a member of the President’s Cabinet? Would the federal Reserve like to go to Congress and request the taxes to balance the Federal Budget? Would the Federal Reserve like to assume responsibility for the Federal Budget?
HAHAHA. Would the Federal Reserve have be put in the same budget they are controlling? Few Americans know, the Fed Reserve is owned by private individual people, often, foreigners. And they have their own budget, it is whatever they want. And we have ZERO input.
Notice the rising hysteria here! The Fed chief is furious, Truman wants to force the Fed to give an ACCOUNTING to Congress. So he screams, ‘What do you want? Want us to do the budget? We will! You wait and see! You better give this up or we will have a coup.’ It is quite clear to me that the independence Woodrow Wilson wished to see the System acquire was in no way related to these responsibilities. This is the first clue, this memo is for one of the bankers who own the Federal Reserve. He is reassuring this shadowy person [whose identity is not revealed by the archives]. If the statutory powers of the Federal Reserve are inadequate to meet the current situation, then the Congress and the Treasury should be seriously concerned with the matter, but the approach of the Federal Reserve in the first instance should be to obtain the support of the Secretary of the Treasury for the changes deemed desirable,—Usually, the Treasury Secretary is either a very rich person or a guy working with the owners of the Federal Reserve. For example, many a J.P. Morgan or Goldman Sachs executive takes a vacation from their real jobs and runs the Treasury or gets put on the board of the Federal Reserve so they can directly control things— rather than to attempt to change the policies of the Treasury by means of the authority which it now has on issues which are clearly matters of judgment and not matters that can be demonstrated in black and white.
This memo makes a sly mention of the murky relation of the Federal Reserve versus the US Executive Branch. Bankers know, if they give very generously during election cycles, when a Reserve position opens, they are often invited into the hen house. All these foxes run the entire US chicken coop and the results are painfully obvious: red ink everywhere like blood splattered all over the hen’s nests.
Historic context: the Chinese and North Koreans push all the way to Seoul, Korea, in December, 1950 and the war there was redoubled and quite expensive. Truman was trying to run a guns & butter economy and this meant, increasing US credit. Right in the heels of WWII and the invention of the UN, the US was in a full-scale war. There was lots of pent-up desire for credit for consumer goods. So the first war & butter spending sprees was being launched.
But the Federal Reserve had stolen all the gold in 1913 and gold determined the value of the dollar and so they had a chokehold on credit creation. Note that this didn’t stop them from lending immense sums of money to England and France to fight WWI and WWII. Or stop money flowing from our credit accounts to Germany, for that matter.
Since most of the owners of the US Federal Reserve are aliens and foreign powers and the ‘American’ ones are internationalists, it shouldn’t surprise us to see them desiring lending for themselves and not us. Let’s go to a slightly later memo, this one was handed over to the ‘President’ of the USA, Harry Truman:
http://fraser.stlouisfed.org/docs/historical/martin/19_02_19510803.pdf
DRAFT August 3, 1951 My dear Mr. president:
It is now five full months since the Treasury and Federal Reserve reached an accord, a sufficient interval to judge the action with some perspective. I was intimately involved from the Treasury side in the preliminary discussions that led to the accord, and have tried in my present position at the Federal Reserve to operate faithfully under it. I am moved, accordingly, to make this report to you.
The real meaning of the accord lay in its spirit. It did not attempt to prejudge the future or to settle by argument and debate the relative merits of the issues that were then dividing the two institutions.
I suspect this was the last, brave attempt at wrestling power from the Federal Reserve, a private bank owned by people like the Rothschilds, had ended with the Fed keeping its paws on the wheel of control of the currency.
Rather, both agreed to work conscientiously together to meet constructively the pressing problems that were before us. —The Fed basically gets to dictate to the Treasury while the Treasury begs for relief. Of course, the Fed gives this only if it wishes to support a President. Note that Truman didn’t survive the next election.– The country was in the throes of an active inflation at a time when the fiscal problems that faced the Government in refunding and new money financing were stupendous. Neither of us wanted to see further monetization of the debt. —Monetizing the debt is what we are getting now because the bankers support Obama who isn’t decreasing their power or trying to impose laws on their actions.—We knew that meant more inflation. Both were concerned to assure the efficient financing of the Government. In the true spirit of the accord, we have worked together to assure the success of the Treasury financing program with a minimum monetization of the debt.
The Office of the Comptroller of the Currency was created during the Civil War to deal with inflation. All wars cause inflation. All governments increase debts in wars. So far, having the Fed run things, has neither prevented many wars or curbed government spending. Nor does it really fix inflation, either.
Looking back over the five months, I think it is fair to say that the economy has been in equilibrium at a high level of activity. During this period it has accommodated a large transfer of resources from civilian to defense production without further inflation. During this period also savings have begun once more to accumulate in savings institutions.
Savings accumulate when there are higher interest rates at banks then there is inflation. When interest rates are below the rate of inflation, people spend as fast as possible. During this Korean War recession, note how civilian industries are going into defense production.
The US solved this problem by going whole hog into defense [sic] spending 100% of the time during peace AND war. While IMPORTING most of our consumer goods.
The Treasury has financed successfully two major maturities, and confidence has returned to the market for Government securities. I realize that there are sharp differences of opinion among your advisers with respect to how much the accord has contributed to this happy result. Without pressing my own view as to its importance, I think that most fair-minded people would agree on two propositions:
(1) That we would not have experienced this period of equilibrium without the accord, and
(2) that this interval in the inflationary spiral has given the Government its first real chance to organize itself to meet effectively the economic problems arising out of the defense program.
Hespectfully yours, ¥fm. McC. Martin, Jr., Chairman*
This memo mentions a battle for control of our finances which obviously, the solution was to have guns and butter all the time, nonstop. And the Fed would simply manage inflation at whatever level the government wanted and both would then conspire to kill the gold peg so all this could be hidden from international view.
Of course, the world did notice this business and adjusted themselves accordingly. Every time our government comes up with some method for doing as it pleases while wearing the Fed Reserve leash, this unleashes counteractions abroad. And obviously, our evasions have killed our own industrial base.
Prior to 25 June 1950, President Harry S. Truman had no notion of fighting a major land war in Asia or, for that matter, engaging the nation in a vast and exorbitant Cold War rearmament program. In his January 1949 inaugural address, the president—always a rather staunch fiscal conservative—had promised to balance the budget, decrease the national debt, keep inflation at bay, and implement his Fair Deal program, an ambitious social welfare plan that sought to address an array of problems from public housing and health care to civil rights. To accomplish this, Truman cast his lot with those who sought to keep national security and defense spending to a bare minimum. He also sought to provide America’s allies with protection from the perceived Russian threat by using the strength of the U.S. economy as a bulwark against Communism. Thus, initiatives such as the Marshall Plan, the International Monetary Fund, and the General Agreement on Tariffs and Trade (GATT) would emphasize economic—rather than military—containment of the Soviet Union.
In other words, Truman’s hope was to focus on domestic issues by building upon New Deal-style reform, focusing on modest civil rights initiatives such as his 1948 order to desegregate the armed forces, and combating the growing perception of a Communist menace at home. However, beginning in 1949 a convergence of domestic and international events conspired against Truman’s best intentions. Even before the sudden outbreak of war in Korea, the president had begun to realize that more would have to be done to defend against Communist advances abroad. Nevertheless, it took the blunt force of Korea to push the Truman administration into action (2).
It was this year, 1951, a US plane carrying a disarmed nuclear bomb, had engine trouble right above Montreal, Canada. So they dropped the bomb which disintegrated without killing everyone below because the fuse was not with the bomb, thank god. We were in this hair trigger situation: Russia got the bomb.
WWIII was on the horizon. But people were sick and tired of WWII and certainly, not ready to be stampeded into WWIII. So, the game was to placate the public here, this included lots of lying, and to build a mega-military machine at the same time. The European bankers were very much menaced by Russian communists so they wanted us to spend maximum amounts on defending Europe even if that put us all in the poor house.
This was politically unacceptable so the game was, to keep the US public happy and content while building this massive imperial war machine that would be run the bankers and their buddies via the CIA which was founded by the bankers.
The solution was easy: London would buy up all our debts and hold them AT PIRATE ISLANDS where the money would be kept out of the economic realm! Ta-da! Eternal debts beaconed! Of course, when the Germans, Japanese and then Communist Chinese saw this, they did it too and got immense trade advantages from this. Now, on to today:
Fed Inspector General Knows Roughly Nothing About The Fed (VIDEO)
The inspector general tasked with overseeing and auditing the Federal Reserve knows pretty much nothing about what the Fed is doing. That’s the conclusion that comes from watching the exchange Tuesday between Rep. Alan Grayson (D-Fla.) and inspector general Elizabeth A. Coleman.
Coleman could not tell Grayson what kind of losses the Fed has so far suffered on its $2 trillion portfolio, which has greatly expanded since September.
She appeared unaware that the Fed engages in trillions of dollars in off-balance-sheet exchanges.
She is not investigating the role of the Fed in allowing the collapse of Lehman Brothers.
She did not know where the Fed has invested its $2 trillion on the liability side of the balance sheet. “I do not know. We have not looked at that specific area at this particular point on,” she said.
YouTube – Is Anyone Minding the Store at the Federal Reserve?
Elizabeth A. Coleman
Elizabeth A. Coleman was appointed Inspector General for the Board effective May 6, 2007. In this role, Ms. Coleman leads a staff responsible for promoting economy, efficiency,and effectiveness within Board programs and operations. The Office of Inspector General (OIG) is also responsible for preventing and detecting waste, fraud, and abuse at the Board, among other duties. The OIG achieves its legislative mandate through audits, evaluations, investigations, legislative reviews, and by keeping the Chairman of the Board and Congress fully informed.
Ms. Coleman joined the Board’s OIG in 1989 as a senior auditor. She was promoted to program manager in 1999 and to senior program manager in 2001. She was appointed to the official staff in 2004, as the Assistant Inspector General for Communications and Quality Assurance. Over the last eight years, Ms. Coleman has worked closely with the Executive Council on Integrity and Efficiency, a professional organization of about thirty statutory Inspectors General who are appointed by their agency heads in certain designated federal entities, including the Board.
Prior to joining the Board’s staff, she was employed by the Government Accountability Office. Ms. Coleman has a BBA from James Madison University and is a graduate of the Stonier Graduate School of Banking, Georgetown University. She also attended the Federal Reserve System’s Trailblazers Leadership Conference. Ms. Coleman is a Certified Information Systems Auditor.
Charming, little-voiced woman. She sounds like the sort of person guys like to barge over at meetings. I know from my own life, that a woman with a high, light voice, gets little time on the floor in raucous meetings. The fact that this timid forest fawn was chosen for this job is obvious: she is a weakling and can be pushed around.
YouTube – Ron Paul HR 1207 Audit Federal Reserve – Earmarks!!!!! 3/10/2009
I support this bill and we should all contact our people in Congress, no matter how helpless they are, if they are tools and most of them are tools, feel free to snarl at them:
GovTrack: H.R. 1207: Text of Legislation, Introduced in House
HR 1207 IH
111th CONGRESS
1st Session
H. R. 1207
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 26, 2009
Mr. PAUL (for himself, Mr. KAGEN, Mrs. BACHMANN, Mr. BARTLETT, Mr. JONES, Mr. REHBERG, Mr. POSEY, Mr. BROUN of Georgia, Mr. POE of Texas, Mr. BURTON of Indiana, Mr. ABERCROMBIE, and Ms. WOOLSEY) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Federal Reserve Transparency Act of 2009’.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General- Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after ‘shall audit an agency’ and inserting a period.
(b) Audit- Section 714 of title 31, United States Code, is amended by adding at the end the following new subsection:
‘(e) Audit and Report of the Federal Reserve System-
‘(1) IN GENERAL- The audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) shall be completed before the end of 2010.
‘(2) REPORT-
‘(A) REQUIRED- A report on the audit referred to in paragraph (1) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.
‘(B) CONTENTS- The report under subparagraph (A) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.’.
Now, we revisit the Federal Reserve web page to see how they explain, who owns the Fed:
FRB: FAQs: Federal Reserve System
The Federal Reserve System is not “owned” by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.
HAHAHA. Note how they put ‘owned’ in quotation marks. As if the Fed is this thing floating overhead, no one knows who is the actual owners, eh? Right! HAHAHA. They will look funny at us and say, ‘We don’t know who owns us!’ Right.
As the nation’s central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as “independent within the government.”
In other words, this entity is UTTERLY UNCONSTITUTIONAL. It is outside our systems. It funds itself. It sets most of its own internal rules. It isn’t audited by the government. We have NO say in how it is run. And yet, like a virus or disease, it inhabits the body politic and controls it.
The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations–possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.
Not for profit….but gets 6% per year??? HAHAHA. I WANT THAT!!!! I have savings. Guess what? Thanks to the Fed and the government conspiring together, I get barely 1% or often, less, on my savings, while they get 6%. Who are they? Madoff’s family? HAHAHA. Actually….yes.
This is the international banking Mafia at work. The international owners want to be hidden from view so they get the Fed website to pretend, no one owns the Fed nor has power of the purse in the US. So who are these people? WE CAN ONLY GUESS!
FRB: FAQs: Federal Reserve System
How is the Federal Reserve funded?
The Federal Reserve’s income is derived primarily from the interest on U.S. government securities that it has acquired through open market operations. Other sources of income are the interest on foreign currency investments held by the System; fees received for services provided to depository institutions, such as check clearing, funds transfers, and automated clearinghouse operations; and interest on loans to depository institutions (the rate on which is the so-called discount rate). After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury.
Why did Congress want the Federal Reserve to be relatively independent? The intent of Congress in shaping the Federal Reserve Act was to keep politics out of monetary policy. The System is independent of other branches and agencies of government. It is self-financed and therefore is not subject to the congressional budgetary process.
Since the Federal Reserve has considerable discretion in carrying out its responsibilities, to whom is it accountable?
The Federal Reserve’s ultimate accountability is to Congress, which at any time can amend the Federal Reserve Act. Legislation requires that the Fed report annually on its activities to the Speaker of the House of Representatives, and twice annually on its plans for monetary policy to the banking committees of Congress. Fed officials also testify before Congress when requested.
To ensure financial accountability, the financial statements of the Federal Reserve Banks and the Board of Governors are audited annually by an independent outside auditor. In addition, the Government Accountability Office, as well as the Board’s Office of Inspector General, can audit Federal Reserve activities.
Are the Federal Reserve System and Reserve Banks ever audited?
The Board of Governors, the Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review. Under the Federal Banking Agency Audit Act (enacted in 1978 as Public Law 95-320), which authorizes the Comptroller General of the United States to audit the Federal Reserve System, the Government Accountability Office (GAO) has conducted numerous reviews of Federal Reserve activities. In addition, the Board’s Office of Inspector General (OIG) audits and investigates Board programs and operations as well as those Board functions delegated to the Reserve Banks. Completed and active GAO reviews and completed OIG audits, reviews, and assessments are listed in the Board’s Annual Report (before 2002, the reviews were listed in the Board’s Annual Report: Budget Review).
The Board’s financial statements, and its compliance with laws and regulations affecting those statements, are audited annually by an outside auditor retained by the OIG. The financial statements of the Reserve Banks are also audited annually by an independent outside auditor. In addition, the Reserve Banks are subject to annual examination by the Board. The Board’s financial statements and the combined financial statements for the Reserve Banks are published in the Board’s Annual Report.
This audit is useless. And Ron Paul makes an eloquent case for changing the relationship of the Fed with the government. Whatever weaknesses or disagreeable situations with Ron, this is one area where he is not only outstanding but very brave and if only he can change this one thing, he would be a worthy President. Below is a 30+ year old book that tries to figure out who owns our national bank:
N.M. Rothschild , London - Bank of England
______________________________________
| |
| J. Henry Schroder
| Banking | Corp.
| |
Brown, Shipley - Morgan Grenfell - Lazard - |
& Company & Company Brothers |
| | | |
--------------------| -------| | |
| | | | | |
Alex Brown - Brown Bros. - Lord Mantagu - Morgan et Cie -- Lazard ---|
& Son | Harriman Norman | Paris Bros |
| | / | N.Y. |
| | | | | |
| Governor, Bank | J.P. Morgan Co -- Lazard ---|
| of England / N.Y. Morgan Freres |
| 1924-1938 / Guaranty Co. Paris |
| / Morgan Stanley Co. | /
| / | \Schroder Bank
| / | Hamburg/Berlin
| / Drexel & Company /
| / Philadelphia /
| / /
| / Lord Airlie
| / /
| / M. M. Warburg Chmn J. Henry Schroder
| | Hamburg --------- marr. Virginia F. Ryan
| | | grand-daughter of Otto
| | | Kahn of Kuhn Loeb Co.
| | |
| | |
Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y.
| | --------------------------
µ
| | | |
8
| | | |
Lehman Brothers - Mont. Alabama Solomon Loeb Abraham Kuhn
| | __|______________________|_________
Lehman-Stern, New Orleans Jacob Schiff/Theresa Loeb Nina Loeb/Paul Warburg
------------------------- | | |
| | Mortimer Schiff James Paul Warburg
_____________|_______________/ |
| | | | |
Mayer Lehman | Emmanuel Lehman \
| | | \
Herbert Lehman Irving Lehman \
| | | \
Arthur Lehman \ Phillip Lehman John Schiff/Edith Brevoort Baker
/ | Present Chairman Lehman Bros
/ Robert Owen Lehman Kuhn Loeb - Granddaughter of
/ | George F. Baker
| / |
| / |
| / Lehman Bros Kuhn Loeb (1980)
| / |
| / Thomas Fortune Ryan
| | |
| | |
Federal Reserve Bank Of New York |
|||||||| |
______National City Bank N. Y. |
| | |
| National Bank of Commerce N.Y ---|
| | \
| Hanover National Bank N.Y. \
| | \
| Chase National Bank N.Y. \
| |
| |
Shareholders - National City Bank - N.Y. |
----------------------------------------- |
| /
James Stillman /
Elsie m. William Rockefeller /
Isabel m. Percy Rockefeller /
William Rockefeller Shareholders - National Bank of Commerce N. Y.
J. P. Morgan -----------------------------------------------
M.T. Pyne Equitable Life - J.P. Morgan
Percy Pyne Mutual Life - J.P. Morgan
J.W. Sterling H.P. Davison - J. P. Morgan
NY Trust/NY Edison Mary W. Harriman
Shearman & Sterling A.D. Jiullard - North British Merc. Insurance
| Jacob Schiff
| Thomas F. Ryan
| Paul Warburg
| Levi P. Morton - Guaranty Trust - J. P. Morgan
|
|
Shareholders - First National Bank of N.Y.
-------------------------------------------
J.P. Morgan
George F. Baker
George F. Baker Jr.
Edith Brevoort Baker
US Congress - 1946-64
|
|
|
|
|
Shareholders - Hanover National Bank N.Y.
------------------------------------------
James Stillman
William Rockefeller
|
|
|
|
|
Shareholders - Chase National Bank N.Y.
---------------------------------------
George F. Baker
Here is the trick. Take, for example, a year like this year in which the government runs a $400 billion dollar deficit. The Treasury Department has to sell $400 billion in US Treasury bills, bonds and notes (government IOUs) to buyers at a rate of interest sufficient to attract their money (and beat the interest competition of other banks’ CDs and other governments’ bills, bonds and notes). To avoid a credit squeeze, the Federal Reserve System Open Market Committee in Washington directs the NY Federal Reserve Bank to purchase roughly 10% of that total (or $40 billion in our example) in existing US bills, bonds, and notes from the current holders. To pay for them it creates the $40 billion out of nothing, merely with keystrokes on a computer. Through more keystrokes, this new $40 billion is deposited into the banks of the various bill, bond, and note sellers, thereby increasing the reserves of those banks by $40 billion…
Note that the Fed, not the United States Treasury, created the initial $40 billion in our example. The 12 Federal Reserve banks are private corporations the stock of which is owned by private banks in their districts, not by the United States Government. The United States Treasury pays the Fed interest on the US bills, bonds, and notes the Fed buys with the money it creates out of nothing. The Fed routinely holds about 10% of the United States National Debt (US Treasury bills bonds, notes), which it has accumulated to provide the base for the rest, as explained above.
6% interest on the nearly trillion dollars in bonds it now owns provides the Fed with roughly $50 billion in revenue. With this money the Fed (1) pays some money to its private banks stockholders, (2) uses some to create giant unaudited slush funds to manipulate currency and stock markets (ostensibly to help avoid economic crises such as the one we are currently in), and (3) then takes out whatever it wishes – without any Congressional oversight or external audit – for expenses, salaries, perks, jets, lavish parties, etc.. The rest it returns to the US Treasury. In this manner the Federal Reserve operates independently of our elected Congress and external oversight.
YouTube – If a Bank is Bankrupt, Just Change the Accounting Rules!
Now for some graphs: To give us some perspective, here is the GLOBAL reserves post WWII until the currency was first devalued in 1966:
Most reserves were gold and it grew slowly. Then, we ditched gold and began the floating fiat currency regime. This caused a global surge of inflation from 1976-1982. Then, it fell rapidly into the Japanese ZIRP system we see today. We are very much in a ZIRP system today but something else is inflating! These graphs below show how the ZIRP process, dropping rates very, very low while monetizing the debt and spending wildly, is causing a series of bubbles:
What can we say? These graphs show a total collapse in the Federal Reserve/US Treasury system that developed after WWII. The ultimate cause of all this is very simple: we want to be a global empire with bases everywhere and at war all over the place…while consuming at home. This is idiotic, impossible and fatal. We can’t do this forever or even for several more years.
But they will try doing this which is why the Fed Reserve can’t be audited! Like the Stress Tests of the banks, all systems are BANKRUPT ALREADY. So, to give the fiction of being solvent, everyone will conspire to pretend all is well and the monetization of our debts won’t change us into Zimbabwe. This is wishful thinking. To say the least.
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Here is an interesting and humourous article written by a reporter of some fame (prizes for this and that) who lost a third of his wealth and tried to find “advice” from the top financial wizards of Wall Street:
http://www.silverbearcafe.com/private/05.09/whatnow.html
Needless to say, he bought some gold and is now just crossing his fingers. I don’t feel a bit sorry for him or his family, but his revelations, or rather the “advice” the former gurus give him, are interesting and worth reading.
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Prior to 25 June 1950, President Harry S. Truman had no notion of fighting a major land war in Asia or, for that matter, engaging the nation in a vast and exorbitant Cold War rearmament program. In his January 1949 inaugural address, the president—always a rather staunch fiscal conservative—had promised to balance the budget, decrease the national debt, keep inflation at bay, and implement his Fair Deal program, an ambitious social welfare plan that sought to address an array of problems from public housing and health care to civil rights. To accomplish this, Truman cast his lot with those who sought to keep national security and defense spending to a bare minimum.
Truman’s problem was not only Joe Stalin, but also our own home-grown Stalin, Senator Joe McCarthy (R-WI), his henchmen Roy Cohn and Richard Milhous Nixon (R-CA), and the rest of the right-winged crazies who thought Roosevelt and harold Ickes stabbed Eastern Europe in the back at Yalta in 44 — not so!; it was Stalin who stabbed everyone in the back when he made those countries into satellites in contravention of the Yalta Pact — who, aside from the European Bankers, wanted a big overblown military and strident opposition to Communism both abroad and here, and more importantly, an end to any sort of domestic “Socialism” that benefited the workers instead of merely big business. They also hated dissent from their agenda and still do. And they almost had their wish: an utterly fascist United States.
what a coincedence…without reading this story, i came across the videogoogle link..
ehh here it is…
http://video.google.com/videoplay?docid=-1138597812890776821&q=source%3A008800397553995647189&hl=en
That’s because Truman has the word “PAWN” written on his forehead.
FDR this guy ain’t
Meanwhile, Chavez declare war on the global bankers and totally nationalize foreign oil comapnies in Venezuela. I want to know if he will still use US dollar or gold after this. World will be a fun place!
http://www.laht.com/article.asp?ArticleId=334220&CategoryId=10717
NY Times is being hysterical about it:
http://www.nytimes.com/2009/05/09/world/americas/09venez.html?_r=1&ref=americas
I think he is nationalizing oil SERVICE companies
Not the same thing
http://www.usavsus.info ……………………spend some time on that site folks and get some knowledge. USA has been bakrupt since 1933. The sec. of Treasury just manages the bankruptcy.
i would like to point out that the problem is not the infinate money… that we can trade… the issue underlying the bullshit economics is what we trade for and what it will be worth in 20yrs… it could be worth nothing or less than we think…. i.e. these bailouts are making the US government insolvent in real terms
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and then global empire blah blah blah, economic dark matter blah blah blah, world economy blah blah blah
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things in REAL terms only work because they work… when things start to NOT work anymore, they will just work badly… but all of a sudden EVERYTHING CHANGES if the problems that we overlook everyday to ‘cheap out’ on our skills and bills catches up with us
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that is called insolvency and it can be a real bitch when your like oyeah… there are some laws out there how do they work for me
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http://www.cahrecords.com
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doesnt matter if your heads in the game or not get out there
Check this fucker out!:
A Tale Of Two Cities: Detroit And Tel Aviv
When online publications erase writers’ careers
http://blogs.reuters.com/felix-salmon/2009/05/09/when-online-publications-erase-writers-careers/
Back in March, I wondered why the NYT was breaking the web, yet was hopeful that it was some temporary snafu, and that it would be fixed sharpish. But no — it’s still insanely broken, and Thomas Crampton is only one of hundreds of journalists who have seen their careers thoughtlessly erased by an idiotic marketing stunt.
This hits home for me, because, between now and then, my name was summarily erased from more than 4,000 blog entries at Portfolio.com, when the site hired Ryan Avent to replace me. Now, everything I wrote has Ryan’s name on it instead of mine. You could call it erasing my career, I suppose. It can be fixed quite easily — if Portfolio.com stays up, which it’s far from obvious that it will — but I’m told there are no staff available to fix it.
In general, web publishers care much, much less about preserving their archives and honoring incoming links than you’d ever believe possible. I’m not sure why that is, but it’s those of us who are paid by media companies to write things online who tend to bear the brunt of those actions. Maybe we should start insisting on adding clauses to our contracts, whereby we’re automatically given our archives and full rights to republish them wherever we want, the minute that incoming links get broken or the site goes down. Such clauses shouldn’t be necessary, but sadly I think they probably are.
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Yo’ shug idunno if you read like my posts but this should trigger ‘emosions’
About 90% of what I have written in the past since 1994, has been summarily erased. Even my jokes. There are so many people snarking on the web these days, it is pointless to snark. This is why I explore other venues.
But yes, things vanish all the time, don’t they? This is why I struggle to control my own site and believe me, it is NOT EASY AT ALL. Constant vigilance is required.
Zip:
The video was very interesting. I however, had some reservations about the solutions…to simply print money and give it to the banks without interest attached…..in other words, cut out the private bankers and owners of the Federal reserve from making money from the money creation process seemed like an improbable outcome because of the power they hold over the entire process….and I must admit that I am leery of any solution that advocates ideas by Milton Friedman and his bunch….after all, they were that authors of man Bush co. policies.
I hope Elaine views the last 1/4 th of this video and gives her opinions on what this group is advocating.
And when this group discounts the advantages of socialism, they became very suspect in my eyes….we are a nation of 300 million people..and growing….and socialism is needed to insure a more saturated distribution of wealth….
Some good monetary history, but the entire solutions advocated seemed to point in the old GOP less government is the best government solution….and, for many things, this is just not so….to simplistic.
Ralph, thanks for the very good link. Without this kind of information noone can form an opinion about their situation. AND it`s quite easy to read (in contrast to the usual deliberately obfuscating legalese).
There is no longer any excuse for not knowing this stuff.
“Steamboats up the river, comin` and a-goin`,
Driftin`the night away,
Hear old darky singin`, the banjos ringin`,
Dance till the break of day…ohh”.
(When it`s Sleepytime down South).
You could always setup your server or, failing that, make backups of all your works
And computers fail every 6 years or so
Well, Money Masters are good in many ways, quite educational. But of course, few people understand how ZIRP banking works: IT DOESN’T WORK.
Either, you get Zimbabwe/Weimar hyperinflation or you get Japan’s eternal depression. What wonderful choices! NOT.
Looking backwards through history, we see how balance is how banks work and the best, best tool for this has always been enforced via gold reserves.
If I understand it right from the video…
the solution proposed would be:
1 introduce debt free money (like “Continental Currency”)
2 use this money to pay of the debts of the US bonds
3 and then reduce the fractional reserve banking sysem
with a good timing and balancing between 2 and 3, it could work….
it seems too simple…
I am not an expert, so I gve my thoughts and maybe others can correct or add there thoughts
- the parties depending on the paid interest are not likely to agree on this (but yeah who has the biggest mililtary force…)
- there should be 100% confidence that with this change there will be a “trusty US”
- the “new continental currency” is not (yet) backed with gold…so why have good budget balancing (US gov)???
- but if it is backed with gold (or something like it), and this is a fixed amount, it should be rebalanced so it is proportional with the amount of people
- what about the zirp? the interest is almost zero, so the debt is “almost constant”… so this is good if you want to pay of the debt… when the debt is gone, the interest should be set by the market to a value, so people are going to save and invest again
- if the “new continental currency” is backed with gold (or whatever), the interest rate will be more constant, because people can reduce/increase money supply by hoarding/selling gold
- The US gov could expand the base of “new continental currency” by investing in public infrastructures/services (which is probably related to the amount of people )
- The “good/bad” thing is that there is no “hidden socialist system”.., the money is not the solution to unemployment (like Keynes and co suggested)…and people should solve it there selves
- what will happen with import/export… with introducing tariffs this can be balanced. the tariffs should be that the imported products are recalculated to gold value and than converted to dollar value (at least avoid the cheap imports ruining the homeland industry)
so these are my thoughts….
@David
I don’t know M Friedman, but it wouldn’t surprise me that this idea(explained in vid) is from the beginning of his career, and that in the last part of his career was influenced and misused by the Bush co. policies…
Misused?
Friedman’s views are not misused
They are deliberate, and he think money supply is the only problem you need to solve to maintain a healthy financial system
Google: American phenomenon and antitrust target
http://www.reuters.com/article/ousivMolt/idUSTRE5458EQ20090507
“The point is that if we’re going to maintain that competitive position, it can’t be because we allow one entity to become a complete monopolist,” Stewart said.
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LOL
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banks, eh let them play footsie… microsoft… well they are the pioneers of the webputer… but google??? they got mad services
“Enjoy the rally while it lasts – but expect to take a sucker punch”
http://www.nakedcapitalism.com/
“This is like drinking hemlock. The US is gradually slipping further towards outright deflation, just as Japan did,” he said. As companies retrench en masse they risk tipping the whole economy into Irving Fisher’s “debt deflation trap”.
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to be frank a system that coddles masturbators and criminalizes trust is a failure… THIS system is a fraud… so i would like to see proper regulation, and rules all HU-MAHN can enjoy…
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there is an air of why be careful when we wont have to be careful… risk it all when its not your money… rob peter to pay paul… the only risk we have to fear is risk itself…
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and thats why we have government… so that snake oil salesmen dont get their way
We are not going into a Japanese deflation trap. Japan kept its currency cheap so they could export. Our own country wants to import stuff and consume. So we will create inflation via our fiat currency.
Any scheme that fixes our deep debts by cheating creditors will cause wars and will cause our trade partners to cease trading with us and I mean OPEC. We consume more oil per capita than any nation on earth. Hell, we consume more oil than any nation on earth. Kiss our civilization goodbye.
Elaine and Zip:
“Any scheme that fixes our deep debts by cheating creditors will cause wars and will cause our trade partners to cease trading with us and I mean OPEC.”
Yes. And Wen has already implied that foreign industries might will be discarded in favor of newer, more efficient ones as China progresses….in other words, he is telling globalists to not expect to keep bringing in old worn out machinery to make profits from Chinese slave labor….but as China progresses, globalists will have to shoulder their share of China’s social burdens…and bring new, up-to-date manufacturing in,…or they will get their walking papers, and can move their pig asses out.
So, one can reasonably conclude that China would nationalize the assets of any US corporation in China if the US defaulted on its debts to China….and this would cause a major confrontation….probably of a military nature.
Of course, we probably would not need these corporations because we could not afford energy to run their industries inside the US.
Zip said:”- the parties depending on the paid interest are not likely to agree on this (but yeah who has the biggest mililtary force…)”
Well, having the biggest military force, without cheap energy to move it around would not be much of an advantage….especially if other nations stopped giving us energy on credit completely.
I agree that the Federal Reserve Bank needs to be brought under strict regulation or even nationalized…and new monetary policies brought about, but, we cannot default on debts (I once thought so, but have changed my mind)…..and we do still have one of the most advanced nations for others to sell products to….So, why not raise tariffs on imports…..lesser ones on worthy, good quality products we need, and extremely high ones on junk like Wally world sells, that nobody needs…like “what nots” and other worthless crap that is vacuuming our money out at a terriffic rate. High taxes and tariffs on autos and trucks that do not meet mpg standards and fair ones on those that do. This would regulate the brainwashed American consumers into using good sense and buying in a thrifty and good sense manner…..and it might even give small US businesses a chance to grow and fill in the gaps…..and possibly grow like Japanese small businesses like Honda did after WWII…the potential is there to do this (maybe need to hire some German engineers to help us for awhile).
This would also raise revenues so we could pay off existing debt, and it would cause deflate prices of import items worldwide….because they could not be unloaded on US consumers at high prices and thus drive up prices worldwide….since US is buying with hugely inflated dollars.
US spending habits…and debt is a major culprit worldwide….and the globalists and big money folks sit on the top of this corruption….skimming the most…and they want it all to continue until the US citizens are completely broke and homeless….and they hope Asian markets and other worldwide markets will have developed enough to take up the slack when this happens.
Hello David,
what was it exactly that you changed your mind on defaulting on debt?
And if I am right, not all the debt is external (to other countries), so for a short while why can’t you tell to the domestic parties to sit and wait, while the external part is paid off…. They are in the same boat, if everything collapses…and if not, you don’t have to have that much energy to move the army around in the US.
And what is than the exact problem with the plan as was explained in the vid?
Is it the idea, or the way it should be implemented, or the possibility of a booby trap (cause Friedman and co are the authors of this “scheme”)?
Congress actually LIKES not having full details as to what the Fed is doing. It gives Congress a loophole, gives them deniability. When our ‘honorable’ members of Congress go back to their districts for re-election, they can sell the voters on the fiction that they are basically powerless to “reform” the Fed. This way, members of Congress can keep the payola (or whatever term you like) flowing and at the same time deflect any criticism of themselves. Solutions? This country needs term limits and it needs campaign finance reform. Until we neutralize or at least blunt the power of the big money interests, members of Congress will whore themselves to ANYONE and EVERYONE who can help them get re-elected. A third and even a fourth party would also help as would reducing the powers of the Committee chairs and the House Speaker. No one member of Congress should be able to block legislation. Nancy Pelosi has been blocking the criminal prosecution/impeachment/investigation of Bush. Scary to think of the back room deals that have gone on.
11 MILLION GERMANS WERE MURDERED POST WWII
Thursday, May 07, 2009
By Richard K. Mariani
The book “Gruesome Harvest,” should be on the mandatory highschool and college reading list for history and sociology.
It is one of the few books that are available in English that address the murder of millions of non-combatant German civilians and German prisoners of war from 1944 to 1950 as a matter of deliberate allied policy not inefficient logistics as it is most often presented in school text books.
http://www.fourwinds10.com/siterun_data/history/european/news.php?q=1241813899
Zip, the IMF and all our foreign creditors don’t want to squeeze the US consumers right now because they are deindustrializing the US. They want the status quo to continue.
If we DO have to pay all our many debts to our trade rivals, they will do it the way you suggest: we get nothing if we hold US Treasuries and such like while we pay off China, Japan and Europe! Wow.
Isn’t that dandy? There is no way we can hand out several trillion to US debtors to let them pay off loans that have 3-8% interest returns. This is the Zimbabwe/Weimar way to pay off past debts. It makes the currency worthless.
Plovering, Germany killed many, many millions of people including a huge number of Russians. The Nazis killed many, many prisoners of war as well as civilians. The Germans were lucky, the US and USSR wanted Germany stronger after WWII, once the Cold War began. The Cold War saved both Germany and Japan and turned both back into international powers in their own rights.
emsnews,
There were 11 million Germans murdered AFTER WWII.
Murders are no accident.
It was planned depopulation.
And well deserved
Like I said, they were lucky it wasn’t worse. Ditto, Japan. Both countries tried the loot and enslave route.
The Crumbling “Rule of Law”
http://www.greenenergyinvestors.com/index.php?showtopic=6628
This is set to be repeated in the unfolding bankruptcy of General Motors, creating TWO new government controlled entities along the lines of Fannie Mae and Freddie Mac, AIG, Citigroup, etc. Why would anyone invest in America or any business involved with the government if the agreements are not worth the paper they are written on, and the private sector just becomes PAWNS of the public servants and their CRONY capitalist PARTNERS? Just like many who invested in the other GOVERNMENT controlled entities, they are now finding out the contracts are written in “DISAPPEARING INK”! This behavior can be seen in Venezuela; now we know why the chief executive so warmly embraced Hugo Chavez. Capitalism is on its DEATHBED in the US and G7
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there is the problem
nah, the difference is that dotgov will make good (pay off 100 pennies on the dollar) on debts held by the financial and insurance entities and tell holders of industrial entities’ debts to go eff off. And these holders will go straight to AIG, who will go crying to Obama, Geithner and Bernanke, and dotgov will make good on the AIG CDS’s these debtholders all own. A sure route to hyper inflation.