Happy Birthday Federal Reserve! Yesterday, December 23, 1913 a day that will live in infamy, marked the 100th anniversary of the creation of our beloved Federal Reserve System, the Central Bank of our country. Why is this significant and abominable? Let us examine the ways.
The conclusion then, is, that neither the representatives of a nation, nor the whole nation itself assembled, can validly engage debts beyond what they may pay in their own time.”
Thomas Jefferson to James Madison, 1789. ME 7:457
Then I say, the earth belongs to each of these generations during its course, fully and in its own right. The second generation receives it clear of the debts and encumbrances of the first, the third of the second, and so on. For if the first could charge it with a debt, then the earth would belong to the dead and not to the living generation. Then, no generation can contract debts greater than may be paid during the course of its own existence.”
Thomas Jefferson to James Madison, 1789. ME 7:455
Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”
Henry Ford, founder of the Ford Motor Company
Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.”
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its credit system. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”
President Woodrow Wilson years after signing the Federal Reserve Act into law
The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarch, more insolent than autocracy and more selfish than a bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at the rear is my greatest foe.”
President Abraham Lincoln during the Civil War
The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.”
Carroll Quigley, American historian, theorist of the evolution of civilizations, and author of “Tragedy and Hope”
Haha this 3 minute video about raising the debt ceiling made me literally laugh out loud! Referring to the National Debt, Total Annual Revenue, Deficit Spending, and Annual Budget Cuts in terms of billions or trillions of dollars can have anyone’s head spinning. However when simplified and applied to the finances of an individual household the economic insanity is quite clear. It is unsustainable, societally damaging, and must come to an end.
Mike Maloney strikes another golden knockout blow with this 29 minute video of his most latest Episode 4 of the Hidden Secrets of Money: The Biggest Scam in the History of Mankind.
Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. This kills all objective standards and delivers men into the arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a check drawn by legal looters upon an account, which is not theirs: Watch for the day when it bounces, marked “account overdrawn.”
It stipulates in Article 1, Section 10 that “No State shall…coin Money, emit Bills of Credit; make anything but gold and silver coin a Tender in Payment of Debts…” The term “Bills of Credit” refers to any paper fiat currency that is not backed by gold or silver. Our government is allowing unconstitutional and illegal fraud to take place on a daily basis ever since 1913 when the US Economy was hijacked by the Federal Reserve!
The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”
The Rothschild brothers of London writing to associates in New York, 1863
According to Mike Maloney the US dollar is the “liar’s lie”, meaning it is one of the most inaccurate indicators of economic vitality that exists. Incidentally that applies to all fiat currencies across the board. Rather in order to ascertain the true value of anything one must compare it to the price of commodities, most notably precious metals. Therefore regardless if the DOW is measured in an oz of gold, barrel of oil, bushel of wheat, lb of copper etc the result is the same. It is hopelessly plummeting in value in relation to these. However just looking at it from a purely Federal Reserve Note perspective it’s pushing to all time highs!
The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple the mind is repelled. With something so important, a deeper mystery seems only decent.”
John Kenneth Galbraith (1908- ), former professor of economics at Harvard, writing in ‘Money: Whence it came, where it went’ (1975).
The Federal Reserve cannot maintain this facade of stable prices for very long with $85 billion/month being printed. The “smart money” of billionaires are already exiting the stock market and heading into hard assets. Unfortunately the “dumb money” of the masses is always lagging hopelessly behind like a dog chasing the tires of yesterday’s news.
This is a good article explaining the history of fractional reserve banking, central banks, the landmark case of The First National Bank of Montgomery vs. Jerome Daly (1969), and how paper money came to be accepted by the people. I would, however, be careful regarding her proposed State imposed solution of government fiat currency printing. No law can forcibly create peace, prosperity, or wealth. This can only occur through willing individuals engaged in peaceful and voluntary trade.
The Jerome Daly case is notable in that it was the first time that it was admitted in a court of “law” that banks create currency out of thin air the moment the borrower signs the loan document. Not only is it created out of thin air but it is to be paid back with the application of usurious interest. Therefore Mr. Daly correctly surmised that since the bank never had the money to “lend” as collateral in the first place, how can the bank ever claim to own the property should the “borrower” default on his pretended loan? The answer is the banks have no legitimate right to own any property, since this process completely violates the true definition of the word “lend”. If I need to borrow a shovel it would make sense that I need to obtain it from someone who has a shovel to lend me. A paper shovel contract simply will not do. Furthermore if you have a shovel and lend that shovel to me, would it make sense to ask me to repay you with two shovels? From where did the second shovel come into existence? If it was borrowed from someone else who also lent his shovel with interest one can understand how this system would rapidly fall apart as the mounting debt would quickly become massive and unsustainable due to the concept of compounding interest.
A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
A similar process occurs at the federal level when the US government borrows currency into existence from the Federal Reserve. This process has many names such as currency creation, the Mandrake Mechanism, Quantitative Easing, bond/asset purchases etc. They all amount to the same thing, the counterfeiting of currency into existence at the direct benefit of those who issue it and at the direct harm to those who have their savings in currency. Furthermore if only the principal portion of all loans is created as currency and not the interest portion, how can society ever expect to pay back all these loans? The truth is it cannot, and this is the painful reality and Achilles heel of our monetary system, which is only recently beginning to show itself. It is a self-perpetuating debt spiral that can only sustain itself with the creation of ever more debt. Once the people realize this and stop borrowing currency into existence the entire house of cards crumbles into itself in a fantastic deflationary collapse. It is an endgame that has been pre-ordained since the whole deception began.
This Wealth Transfer has the ability to create vast amounts of wealth to those understand this mechanism and destroy vast amounts of wealth to those who remain ignorant. The information is there for anyone to see and understand. In the age of information, ignorance is a choice!
The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title.”
The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.”
Just do good things