Category : Federal Reserve

The pyramid scheme that is our economy is teetering on the brink of collapse. The subprime loan disaster is looking more and more like the detanator that will nuke the dollar, the banking industry and our economy as a whole.

When US homeowners default on their mortgages en-mass, they destroy money faster than the Fed can replace it through normal channels. The result is a liquidity crisis which deflates asset prices and reduces monetized wealth, says economist Henry Liu.

The debt-securitization process is in a state of collapse. The market for structured investments, MBSs, CDOs, and Commercial Paper—has evaporated leaving the banks with astronomical losses. They are incapable of rolling over their their short-term debt or finding new revenue streams to buoy them through the hard times ahead. As the foreclosure-avalanche intensifies; bank collateral continues to be down-graded which is likely to trigger a wave of bank failures.

Henry Liu sums it up like this: Proposed government plans to bail out distressed home owners can slow down the destruction of money, but it would shift the destruction of money as expressed by falling home prices to the destruction of wealth through inflation masking falling home value. (The Road to Hyperinflation, Henry Liu, Asia Times) It’s a vicious cycle. The Fed is caught between the dual millstones of hyperinflation and mass defaults. There’s no way out.

We are so fucked.

Unless somebody has a new economic system waiting in the wings I’ll have to start learning how to survive on rats, rabbits, squirrels … and probably human flesh at this rate. And that is not my idea of a good time.

The worst part is the feeling of helplessness. I can only watch these “financial experts” make one stupid decision after another. They’re only really experts at making themselves massive short-term profits. They don’t care about the damage they’ve done to the economy, which affects all of us.

The whole affair is depressing and maddening, but if you want to learn more, visit the Market Oracle.

As for me, I’ll be learning to hunt small suburban mammals.

Oh wait, it’s a total hatchet job:

Paul keeps white supremacist donation

WEST PALM BEACH, Fla. – Republican presidential hopeful Ron Paul has received a $500 campaign donation from a white supremacist, and the Texas congressman doesn’t plan to return it, an aide said Wednesday.

Don Black, of West Palm Beach, recently made the donation, according to campaign filings. He runs a Web site called Stormfront with the motto, “White Pride World Wide.” The site welcomes postings to the “Stormfront White Nationalist Community.”

The mainstream media (MSM) has no intention of covering the presidential race fairly. They plan to turn it into a horserace and throw the issues out the window.

I’ve written extensively about this before. From their incredible (and intentional) stupidity to their orthodox adherence to inanity the mainstream press apparatus is nothing more than a treasonous corporate whore. Glenn Greenwald has been covering this issue superbly as well.

It’s been fascinating to watch the media blackout on Ron Paul. I mean, Pravda couldn’t have done a better job at squashing stories about him, but the internet has provided Paul supporters a platform to spread the word. It’s interesting to watch the media desperately try to keep a lid on his campaign even while he’s breaking fundraising records.

The media still has to cover him, of course. A total blackout would be rather bizarre and would draw more attention than it would divert. However, the “subtle” blackout we’ve been subject to is obvious and suspicious nonetheless.

I should point out that I’m not a fervent Paulite. I don’t like a lot of his conservative positions, but his opposition to the Federal Reserve certainly caught my attention. Apparently it caught the Oligarchy’s attention too, which is why Dr. Paul is not getting any mainstream play.

You’ll notice that even the mainstream outfits that do cover Paul tend to do it in their “blog section”, which is exactly where I found the link above. That same blog post displays the most common way reporters deal with Paul; draw attention to his supporters and make them seem a little unhinged:

His legions of alert supporters scour the Internet for slights to right, frequently crudely, and any opportunities to promote their strict constructionist candidate. They dismiss the polls as slanted and the money-raising as the real indicator of the 72-year-old ob-gyn’s growing national support among disaffected Republicans, Democrats and previous non-voters. The Times’ James Rainey examined one Southern California meet-up group for Paul here.

We’ve written about these supporters here and examined hundreds of their comments here. No doubt there’ll be some more to read down below here shortly.

Nice of them to examine the man’s supports and their internet activities, but (and maybe I’m old fashioned here) what about his position on the issues?

Oh silly me. I forgot the Media has already decided that we’ll be choosing between Hillary and Ghouliani.

But what if I want to live in a democracy?

If you’ve ever felt like you’re a slave to money, this video will explain quite simply how that is in fact true. It’s the best video on money creation I’ve ever seen.

Be sure to check out all five sections. Here’s part 2.

Proving once again that they value partisanship over America, freedom and informed debate, the sellout hacks at DailyKos have “warned” anti-war protester Cindy Sheehan that if she posts more about her independent candidacy she will be banned.

I can’t post here anymore because my potential run for Congress is not on the Democratic ticket.

If Speaker Pelosi does her constitutionally mandated duty and I don’t run, then I can come back and post.

DailyKos is shameful. The site is bathed in hypocrisy and founded on partisanship.

The two-party system has destroyed America and put us in the current mess, and DailyKos and other Yellow Dog Democrats are part of the problem. They care about Democrats first and America second (just as the Republicans look after themselves first and America… well, okay they don’t care about America at all).

That said, there is still some hope that Pelosi is just being strategic, but where has trusting the Democrats to hold Republicans accountable got us so far? I can see Cindy’s point; what’s the purpose of having the Democrats in charge of Congress if they won’t impeach? 50% of the nation is pro-impeachment (46% for Bush, 58% for Cheney) and the Democrats aren’t even talking about it. Once the real investigations start and we find some dirt the numbers will go higher. But will the Democrats have the balls to do it?

Only if it doesn’t harm their precious party, or the two-party system.

Ironically, many DailyKos regulars are the best enemies Bush could hope for: weak, timid, divided and fucking stupid. They proceed with undue caution and fret that attacking Bush could make them look like big meanies. They make excuses rather than try and build a consensus on impeachment, and they are far more concerned about their electoral chances in 2008 than in actually holding the illegal Bush/Cheney administration accountable. In short, they are Bush’s enablers.

Sheehan gets points in my book for being against the Federal Reserve, which many Kossacks think is a Republican position (it’s not), so, unthinkingly, they reject it like the fucking mindless borg shitheads that they are.

Opposition to the Fed is generally an independent position (Ron Paul is the exception here, but he’s so hated by his own party that I think it only strengthens my point), and is generally the province of informed, independent-minded folks who don’t follow marching orders of the Washington establishment oligarchy.

The sad truth is the there’s nothing progressive about DailyKos; it’s about as regressive and unimaginative as you can get. These people are too wrapped up in the sports team mentality (“Gooooo Dems!”) to realize that their party is as much a part of the fascist oligarchy as the Republicans.

DailyKos is decidedly mainstream, and worships at the altar of pragmatism, not freedom, liberty, or truth. Their only goal is victory (and they admit as much), although they still like to pretend to be anti-establishment nothing could be further from the truth. When Kos casts himself as a revolutionary, he doesn’t mean to change the system. He merely wants to sieze control it and use it for his own selfish aims… Just like everybody else in politics.

The Democrats, for their part, have accomplished exactly nothing in Congress. Not that Bush would sign their reform bills anyway, but isn’t that all the more reason to impeach the stonewalling, lying, election-stealing fascist bastards? Apparently not.

I’ve said it before and I’ll say it again: There’s only one party — The Business Party, and Democrats and Republicans are merely factions of that monolithic party. We don’t live in a democracy, we live in a constitutional republic that is quickly shedding the “constitutional” part for fascism instead. And what are the Democrats doing to stop it? About as much as they’re doing to stop the war: Nothing but a few bellicose speeches for the choir.

Still, the Kossacks will continue to support the Dems, no matter what. Blind loyalty is their modus operandi and they show no signs of changing it. So, how are they any different from the Republicans who support Bush no matter how many laws he breaks?

Partisans on both sides are the same. They all think it’s okay to break a few rules in order to achieve their party’s higher goals. What’s best for America doesn’t enter into it.

There’s a great article in the NY Times about those Americans who did not support the American Revolution in 1776. The author’s guess is that around 20% of the population did not support the revolution. It should not be surprising; people are rarely in harmonious, unanimous agreement about… anything. But it’s worth bearing in mind.

During three days in November 1776, this petition sat in Scott’s Tavern, on Wall Street, to be signed by anyone who wished. A frank declaration of dependence, it completely lacks the revolutionary genius and rhetorical grace of our hallowed July 4 document. Yet in all, more than 700 people put their names to the parchment — 12 times the number who signed the Declaration of Independence. Among the signatories were pillars of New York society: wealthy merchants like Hugh Wallace, who commanded vast tracts of land and capital; members of some of New York’s most prominent families, the DeLanceys, the Livingstons and the Philipses; and the clergymen Charles Inglis and Samuel Seabury, who published articulate rebuttals to rebel pamphlets like Thomas Paine’s “Common Sense.”

I’m probably the only person on the planet who thinks the American Revolution was ultimately a failure…. because we were reconquered by the British a hundred years ago. Notice that the petition was situated on Wall Street. Well, some things haven’t changed. Wall Street was then and is now, home to the “Royalists”, if you will. The “moneyed interests” were defeated in 1776, but the wealth and power Britain wielded was immense. In time, Britain was able to get a toehold in her former colony using that most diabolic of weapons: Money. As a young nation we were starved for it and didn’t really care where it came from.

A certain class formed, primarily on the east coast, right around New York (the “Empire State”), whose allegiance was to power; not America. I suppose it wasn’t the British reconquering us so much as the old guard reasserting its power against a young upstart.

Still, the British connection is worth looking into. Why do we care about the Queen or Princess Diana? Wall Street is associated with the CIA, and the CIA is closely tied with MI6. Our intelligence apparatus is intrinsically bound with that of Britain and her other wayward colony, Australia. The UK/USA axis is currently the strongest in the world. It does seem a bit odd that our closest ally (in Iraq and other places) is our old colonial master, doesn’t it? I suppose after WWII some old wounds were forgotten (or forgiven, anyway). But it is curious that we have such enmity in this country for France, the nation that gave us the Statue of Liberty and helped us fight against the British.

Here we are, in a nation that is clearly ruled for the rich, by the rich. Are we independent from the British? Perhaps, but what does it matter if we’re not independent of tyranny? A new tyranny rules these lands, and it’s called crypto-fascism. We wouldn’t be much better off under the thumb of the British police state. Freedom seems to slip away over time, as cowards have their say and convenience trumps idealism time and time again. It’s true what Jefferson said:

“The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.”

But the hard part, as always, is figuring out who’s a patriot and who’s a tyrant. I can give you a few hints, though: In a hierarchical society whose class system is based on accumulated wealth the poor folks certainly do not have a chance to be tyrants, whereas those sitting at the top of the pyramid might behave like aristocrats without even realizing it.

Let’s hope Thomas Jefferson doesn’t rise from the dead anytime soon. We’ll feel like the Native American tribes who sold vast tracts of land for nothing more than beads, trinkets and gunpowder. I doubt Jefferson will be nearly as impressed with our high-definition TVs as we might be.

“You exchanged your God-given Freedom for WHAT?!!” he’ll say.

“Hey, c’mon — these beads are really shiny!”

George W. Bush has been a disaster for this country, there can be no doubt. However, beware of those who want to be his successor — many of them are just as bad, if not worse.

Case in point: Hillary Clinton has vowed to keep U.S. troops in Iraq if she’s elected. Not only is she a war supporter, she is even more blatant about her willingness to spill American blood for Iraqi oil.

As for Iraq’s importance to US “national security,” Clinton could not have been clearer: “It is right in the heart of the oil region.”

Asked how many troops would be left behind under such a plan Clinton demurred, claiming that she would bow to “the advice of military officers.” Undoubtedly, however, these open-ended missions—securing Iraq’s borders, suppressing resistance, training its military and, above all, assuring control of its oil, not to mention protecting and supporting all those engaged in these activities—would require the permanent basing of tens of thousands of US soldiers and marines in an occupation that would last for decades.

Hillary Clinton is an imperial neocon traitor, just like Bush. Do not be fooled. If Hillary is elected we can look forward to more of the same. She’s so ambitious she will sell out any principle, sacrifice any amount of American lives, do any amount of damage to our nation to achieve her selfish goals. The only thing that matters to her is getting elected president. Everything else is secondary, including our Constitution, our troops, our nation, our liberty and our standing in the world.

I repeat: Do not be fooled! Many of the Democrats are nothing more than neocons in sheep’s clothing. Ironically, the Republican-in-name-only Ron Paul might be our best bet for 2008. He’s basically a Liberatian in Republican guise. He was against the war in Iraq from the beginning and he wants to shut down the Federal Reserve — that pretty much gets my vote right there.

It’s worth noting that the Democrats have done little to get us out of Iraq so far — if this is still the case in 2008 then we might need to re-examine our ideas of partisanship. All partisanship does is divide us. I’m as guilty of this as anyone. Maybe it’s time to vote for the person and not the party.

There’s a discussion over at Slashdot concerning the income disparity we face today. I expect it to be modded into oblivion by fascists, capitalists and morons, so I’m reposting it here:

So, who got a check from the government last year to make up for all the money you lost to inflation? Anyone?

Whenever topics like this come up all the libertarians, fascist/corporatists and foaming-at-the-mouth capitalists come out of the woodwork to say that “anybody can make it in America!” even though none of them have been poor, black, suffering from disease and fleeing from hurricanes while still succeeding in business. Hey, I like kool-aid, too, but this is total horseshit. Let me be absolutely clear:

THE RICH “CREATE” POVERTY. Clear enough? Without rich people actively trying to fuck over poor people we wouldn’t have the income disparity that we presently have. To see it in action, all you have to do is look at the Republican party and their collaborators in big business. They try their best to cut taxes for the rich and slash spending on social programs, no matter what the human cost. The Democrats help by increasing federal spending to obscene levels thereby necessitating increased taxation. We get fucked from both ends, like a double-sided dildo.

As amusing as it is to read white-bread, middle-class slashdotters talking about how easy it is for anybody in America to become a captain of industry, I feel compelled to take a shit on your Capitalism Cake. Fascism is alive and well in this country, which should be no surprise to anyone who knows what Fascism is: Corporatism. Basically, it’s the merger of the state and big business. Fascism is the governmental system that is most favorable to business, bar none. Big Business is fascist not because they believe in Hitler’s aryan fantasies but because they stand to gain from a government hopelessly devoted to improving market conditions for greedy multinationals.

The income gap is not a new thing because greed is as old as humanity. There is no such thing as being “rich enough.” There is only MORE. More money, more power, more disparity. And how do you really know that you’re rich unless somebody else is poor? How can you really enjoy being wealthy unless you have servants? The rich mindset is dead set on creating inequity because the rich benefit from it, and like I said, there is no limit to their desires.

This is aided, abetted and made possible by the Federal Reserve System. Each year the Fed increases the money supply, and each year money becomes worth less and less. That’s the problem with fiat currency. Since it’s not backed by gold the dollar bill has no intrinsic worth. It is just paper. Since it’s just paper/electrons it can be created with a flick of the wrist. And so it is. When that money is created, who gets it? You? Does the government/private industry send you a check each year to account for inflation? No, the money is simply stolen from you by those who create it: The bankers. Bankers are the Kings of Capitalism. They are the new aristocracy, the ruling class that maintains control with an iron fist. They control the corporations and our government.

But this system, which appears impossibly strong from the outside, is actually rotting from within. Things are falling apart. If there was a run on the banks our economy would collapse into a pit that would make the Great Depression look like a tea party. That’s because of the deposits vs. cash-on-hand ratio. Banks are able to create money simply by making loans. How? Well, they don’t really have your money in the vault, you know. For each dollar you put in your savings account the bank is able to lend 10 dollars out because bankers have figured out that they only need to keep 10% of their total deposits on hand at any given time. (I’d like to have a 9x or 10x multiplier on my wealth. Maybe I should start a bank and screw you people over! It’s the American way!) The Fed backs them in case of a run, but they don’t have the money either. The money doesn’t exist. It’s imaginary. It’s not backed by anything like gold and it is only accessible during normal business climates. In the event of a nationwide run on all banks the first 10% might get their money out. The other 90% are totally and completely fucked.

Our economy is based on smoke and mirrors. The Federal Reserve is a privately owned corporation that loans our government money at interest, even though the money is completely fake. This is why we have a 9 trillion dollar federal debt (well, that and profligate spending by Congress). It’s a total scam. And most importantly, it’s a system of control, courtesy of the ultra-rich. They know that money is worthless; it’s only a means to an end: Power.

So does income inequality matter? Of course it does. It matters to the rich, who count on poor people for cheap labor (thus, the love affair with illegal immigration — would you rather pay $2.50 an hour for a Mexican gardener, or $10.50 for a citizen gardener?), and it matters to the poor, who can’t afford to go back to school to get more skills and get a better job… working for a rich guy who was born with a silver spoon in his mouth, went to Harvard’s kindergarten, etc.

So please, spare me the platitudes about how anybody can make it in America. If you do make it you’ll have to spend the rest of your life looking after your money, investing it properly and being successful at it or inflation will turn your wealth into a big pile of nothing. This should be nothing new to anybody who’s familiar with the ruling class. It’s the same in this country as it was 2,000 years ago during the Roman Empire. One of my favorite scenes from Mel Brook’s History of the World: Part 1 is the one in the Roman Senate:

Leader of Senate: All fellow members of the Roman senate hear me. Shall we continue to build palace after palace for the rich? Or shall we aspire to a more noble purpose and build decent housing for the poor? How does the senate vote?

Entire Senate: FUCK THE POOR!

Shitty day.

Fuck, fuck, fuck.

What a shitty day. Nothing too horrible, just left me wondering: When’s Timmy-time? When do I get time for me? It seems like I’m working my life away… and I am. Is this really what I want to do with my life? It’s so short, and it’s slipping away… Is this it?

Why does it seem like we get busier and busier every year? Why don’t Americans use their supposed wealth to stretch out their leisure time? Isn’t that the definition of freedom? But I bet most of you are stuck with whatever PTO time the company gives you… and the rest of you can only wish you had PTO time.

Is this freedom? Is this wealth? How come I feel so poor in the time department? I’d gladly trade some money for some more time… but I don’t have enough money either.

They keep telling me that Americans are rich, richer than most of the rest of the world. Is that so? Then how come we have to work so much? After cost of living expenses and inflation are factored in it seems to me that we’re just like everybody else. Just trying to get by, day by day. Working more than we should because we can’t control our own hours. We can’t get the job we really want, we can’t spend as much time with friends and family as we’d like and if we complain too much we’re out on the streets. You call this freedom? I call it economic bondage.

So this is what it feels like to be a wealthy slave.

It now sounds like the NSA approached AT&T about setting up a domestic spying ring well before 9/11. Bush previously claimed that 9/11 was the impetus behind the decision, but it sounds like he’s just a fascist by nature:

The U.S. National Security Agency asked AT&T Inc. to help it set up a domestic call monitoring site seven months before the Sept. 11, 2001 attacks, lawyers claimed June 23 in court papers filed in New York federal court.

The allegation is part of a court filing adding AT&T, the nation’s largest telephone company, as a defendant in a breach of privacy case filed earlier this month on behalf of Verizon Communications Inc. and BellSouth Corp. customers. The suit alleges that the three carriers, the NSA and President George W. Bush violated the Telecommunications Act of 1934 and the U.S. Constitution, and seeks money damages.

“The Bush Administration asserted this became necessary after 9/11,” plaintiff’s lawyer Carl Mayer said in a telephone interview. “This undermines that assertion.”

The lawsuit is related to an alleged NSA program to record and store data on calls placed by subscribers. More than 30 suits have been filed over claims that the carriers, the three biggest U.S. telephone companies, violated the privacy rights of their customers by cooperating with the NSA in an effort to track alleged terrorists.

Well, this probably comes as a surprise to anyone who thinks Bush is a real conservative. The neocons are called neo-conservatives because they’re not really conservative. They’re actually quite a radical bunch and they came into office with a very forward-looking plan to reshape the world and America’s place in it. While you certainly can’t call them liberals, the conservative label doesn’t fit either. That’s why I like to call them neo-fascists. It describes their intent and their methods so much better than the other, more conventional terms.

So let there be no doubt: Spying on us and taking away our liberties was the plan from day one. They didn’t suddenly become radicalized by 9/11 — they claim that continually and that’s bullshit. They hope that we were changed by 9/11, but it didn’t affect them in the same way. Shit, the neocons probably threw a party after 9/11 because suddenly everything they’ve ever wanted was within reach. They can continue building their American Empire without a lot of whiny opposition (or so they thought! Bloggers can whine better than anyone!) and they no longer had to pretend to care about the Constitution. When you look at who benefited most from 9/11 the neocons are on the top of the list. They certainly faired better than the mythical Al Qaeda (which is CIA anyway).
We live in dark times. Can’t trust our own government. Our government has been stolen out from under our noses and most people have no idea why or how. I can answer that quite easily. Why? Power. How? The Federal Reserve System. That’s a gross oversimplification, but the fact remains that the Fed enabled the private banking class to control our government from afar. Just think about it: A private institution, in the middle of our government (inaccurately named “Federal”) that controls our money supply. The government depends on the Fed for it’s power because in the capitalist system the bankers are king. Shit, you’d be king too if you could take a dollar and turn it into ten dollars just by loaning it out ten times. That’s the way banks work; fractional reserve banking is a huge scam:

Banks make money by literally creating money out of thin air, nowadays exclusively deposits rather than bank notes. This sort of swindling or counterfeiting is dignified by the term “fractional-reserve banking,” which means that bank deposits are backed by only a small fraction of the cash they promise to have at hand and redeem. (Right now, in the United States, this minimum fraction is fixed by the Federal Reserve System at 10 percent.)

Fractional Reserve Banking

Let’s see how the fractional reserve process works, in the absence of a central bank. I set up a Rothbard Bank, and invest $1,000 of cash (whether gold or government paper does not matter here). Then I “lend out” $10,000 to someone, either for consumer spending or to invest in his business. How can I “lend out” far more than I have? Ahh, that’s the magic of the “fraction” in the fractional reserve. I simply open up a checking account of $10,000 which I am happy to lend to Mr. Jones. Why does Jones borrow from me? Well, for one thing, I can charge a lower rate of interest than savers would. I don’t have to save up the money myself, but simply can counterfeit it out of thin air. (In the nineteenth century, I would have been able to issue bank notes, but the Federal Reserve now monopolizes note issues.) Since demand deposits at the Rothbard Bank function as equivalent to cash, the nation’s money supply has just, by magic, increased by $10,000. The inflationary, counterfeiting process is under way.

The nineteenth-century English economist Thomas Tooke correctly stated that “free trade in banking is tantamount to free trade in swindling.”

Read the whole article. It’s a great primer on how inflated and fake our whole economy is. Anytime there’s inflation your money is suddenly worth less. But whoever created that new money just got a sweet deal. He just swindled you and it’s all completely legal. He can swindle you again and again and you’ll never know his name or look him in the eye. You’ll never get a chance to get your money back either. Our entire economy is one big scam.

So, who benefits from all of this? Bankers and criminals, of course (is there a difference?). Over the years they have grown powerful and they are getting extremely tired of the constitutional roadblocks in place and they would very much like to be rid of our pesky civil liberties. So it should come as no surprise that Bush has been a tyrannical, fascist, wanna-be dictator from day one — he is very much a scion of the criminal banking class (he was born in Connecticut, not Texas) and his goal has always been to increase the power of the Shadow Government that sprung up after the creation of the Fed. The Shadow Government includes the military-industrial-complex (which itself includes the NSA, CIA, the Pentagon as a whole and Congress) along with the Fed, the FBI, the ATF and various other tentacles of contr
ol (like the media). Not everyone who works at the NSA is part of this Shadow Government, but the problem is that most people don’t even know it exists — so how can they fight against it?

Spread the word. The Shadow Government is basically a takeover attempt by the banking cartel and their criminal buddies. Events like 9/11 will continue to happen until they are removed from power.

JustOneMinute links to the latest Krugman article, but I think Kruggers is better at bashing Bush than figuring out why we are in such a hellish situation. We’re controlled by creditors. I posted thusly over there:

This is a decent article, but Krugman has to recognize that inflation is basically government theft. The Fed controls how much inflation there is by printing cash and making loans. The fact that there’s usually money to be had keeps us out of trouble, but political and economic forces can also cause inflation (oil prices, for example). Even the moderate amount (small by Fed standards) of inflation we’ve experienced lately is too much because it’s so continuous. A few deflationary periods ever now and then wouldn’t hurt. There would be less money in circulation, but the cash you did have would become more valuable.

The Fed’s insistance of constant boom times has created a boom-bust cycle when we should have a normal up and down cycle. I think it’s time we take a look at where the Fed is leading us and ask whether they have people’s interest at heart. After all, they are not elected, yet they control our encomony, which is arguably even more important (read: more powerful) than our democracy (such as it is). I think we need to take a long, hard look at the Fed and wonder if we really need it.

Some quotes about the Federal Reserve System:

“From now on, depressions will be scientifically created.”
Congressman Charles A. Lindbergh Sr. , 1913

“The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money”Charles A. Lindbergh Sr., 1923

“When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money.”Boston Federal Reserve Bank

“I have never seen more Senators express discontent with their jobs….I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected.”John Danforth (R-Mo)

“I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs.”Thomas Jefferson, U.S. President.

“If Congress has the right [it doesn't] to issue paper money [currency], it was given to them to be used by…[the government] and not to be delegated to individuals or corporations.”President Andrew Jackson, Vetoed Bank Bill of 1836

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance.”James Madison

“The few who understand the system, will either be so interested from it’s profits or so dependant on it’s favors, that there will be no opposition from that class.”Rothschild Brothers of London, 1863

“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.”Sen. Barry Goldwater (Rep. AR)

“Whoever controls the volume of money in any country is absolute master of all industry and commerce.”James A. Garfield, President of the United States

“Banks lend by creating credit. (ledger-entry credit, monetized debt) They create the means of payment out of nothing.”Ralph M. Hawtrey, Secretary of the British Treasury

“To expose a 15 trillion dollar ripoff of the American people by the stockholders of the 1000 largest corporations over the last 100 years will be a tall order of business.”Buckminster Fuller

“Every Congressman, every Senator knows precisely what causes inflation…but can’t, [won't] support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him his job.”Robert A. Heinlein, Expanded Universe

“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”Henry Ford

“The regional Federal Reserve banks are not government agencies. …but are independent, privately owned and locally controlled corporations.”Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.”Congressman Louis T. McFadden in 1932 (Rep. Pa)

“The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers.”Congressman Louis T. McFadden (Rep. Pa)

Meant to post about this yesterday, but Blogger was having some serious problems. So if the blog was missing or there was a post repeated 3 or 4 times yesterday, that was why.

Anyway, director Aaron Russo has a new movie coming out called America: From Freedom to Fascism and it looks absolutely gut-wrenching:

“FOUR STARS (Highest Rating). The scariest goddamn film you’ll see this year. It will leave you staggering out of the theatre, slack-jawed and trembling. Makes ‘Fahrenheit 9/11′ look like ‘Bambi.’ After watching this movie, your comfy, secure notions about America — and about what it means to be an American — will be forever shattered. Producer/director Aaron Russo and the folks at Cinema Libre Studio deserve to be heralded as heroes of a post-modern New American Revolution. This is shocking stuff. You’ll be angry, you’ll be disgusted, but you may actually break out in a cold sweat and feel a sickness deep in your gut; I would advise movie theatre managers to hand out vomit bags. You may end up needing one.” — Todd David Schwartz, CBS

I can’t wait until it’s released (in late July I believe). I’ve been interested in this stuff for years. Not so much the IRS part, but definitely the mysteries of the Federal Reserve.

For those not in the know: In 1913 a huge scam was perpetrated on the American people when Congress gave away it’s right to coin money. This power was transferred to the newly created Federal Reserve System. One problem: The Fed is not federal. Whazzat, you say? I’m serious. It was created as a private money-lending institution. So who owns the Federal Reserve? Nobody knows. (Well, presumably the Fed knows, but they’re not telling). You can rest assured that you don’t.

Beyond that disturbing fact, the problem runs deeper. You see, the Fed creates money out of thin air. The dollar is no longer backed by gold, so any money that is created is just… paper. And most of it is electronic these days anyway. But how can that be?! you ask. Well, Congress gave the Federal Reserve that power when it was created in 1913. This is known as fiat currency because the government simply makes a law (a fiat) and says, “this is the way it is. This paper is worth X, even though there’s no precious metal (like gold) backing it. It’s worth something because we say it is.”

Isn’t this a little dangerous? you might wonder. Especially since the Fed is a private entity (that pays no taxes) controlled by unknown persons. You bet it is. Here’s what Thomas Jefferson had to say on the matter:

“I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies.”

Damn right, Jefferson. So, if you’ve ever wondered how our supposedly prosperous nation managed to get 8 trillion dollars in debt, now you have your answer. A private bank is loaning our government money that it (the bank) creates out of nothing, and it’s loaning our government this money at interest! What a scam!

But who’s going to pay this interest that the bankers are charging the government? I’ll give you a hint: You are! In 1913 (the same year, at the same time) Congress also created the IRS and the income tax. It started at only 1% of total income, but it has gone up steadily ever since then (as I’m sure you’re well aware, especially around April 15th). In any fraud or scam somebody has to get it in the shorts, and in this case it’s the American taxpayer who is getting royally screwed.

Of course, the Congress could always cut back on spending. How ’bout you hold your breath until that happens? :-) Not fucking likely, right? Well, that’s why the Congress loves the Federal Reserve; it’s a bank that let’s you go as deep into debt as you could ever want to go! 8 trillion and counting! They never ask for the principle; the interest is enough to keep them fat and wealthy. Congress simply raises the debt ceiling (or is it a basement?) and keeps spending like no tomorrow.

It was said by Alexis de Tocqueville that: “The American Republic will endure, until politicians realize they can bribe the people with their own money.” Well that day has long since passed. We’re like Wile E. Coyote running off a cliff. One of these days we’re gonna look down and then we’ll start to fall. The horrible reality is that America has been secretly taken over by a fascist cabal of bankers.

Throughout American history, a few brave men have stood up to the bankers (the Federal Reserve is our 3rd central bank; each one was worse than the previous one). They include Thomas Jefferson, Andrew Jackson, Abraham Lincoln and John F. Kennedy. It seems that the last two may have paid for their courage with their lives.

So, if I have piqued your interest, please see the movie! Make sure you check out the previews on the Freedom to Fascism site. It looks awesome; I can’t wait to see it. Let’s just hope there’s still a country left to save by July. With George Bush (an agent of the bankers) in charge, that’s not a sure thing!

I leave you with a quote from banker-extraordinaire Mayer Anselm Rothschild:

“Permit me to issue and control the money of a nation, and I care not who makes its laws…”