tagged w/ Federal Reserve
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The hyphenated anarchists can be a combative bunch. I’ve done my share of arguing from an Ancap perspective, against sects of the movement I believe wish to achieve freedom- so long as it is done their way. Tired and stale as the news on it may be, the Occupy Movement lends itself well to unification behind a few vital, strategy-related principles for pushing back the state. Libertarian and anarchist circles have reacted to the Movement in a number of ways, ranging from complete dismissal to complete embrace. The implications of the current Movement, which has now spread to Europe, are too large not to take advantage of, but in a measured way. Because the Movement presents an opportuni.......
http://peacefreedomprosperity.com/5749/ows-an-anti-state-perspective/The hyphenated anarchists can be a combative bunch. I’ve done my share of... more
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This is made for the people! Please share... the music was composed by my son years ago and when I heard it... it broke my heart to know that at 23 he was feeling the depth of a ticking time bomb... his world as he knew it then was certain to fail. He used the sound sample from the movie Network and electonically altered the message... I found myself glued to the images on the internet and was compelled to make this video. Power to the people! Connie M. JohnsonThis is made for the people! Please share... the music was composed by my son years... more
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After breaking $4 a gallon for a short time in may, the steady decline in gas prices over the last five months has come as a breath of fresh air to commuters and consumers everywhere. The current average is hovering around $3.46 a gallon.
In such times it is far too easy to look at the current price and gain false hope in a recovering market. For example in July 2008, gas prices were pushing $4.12 a gallon. In a highly unusual dip the prices fell to nearly $1.60 a gallon in less than 6 months – something that has never happened in at least over 7 years.
Why? Well, the price of light crude on the WTI at the time was at an all time high in July, and made a very sudden decline from $133/barrel monthly average to $41/barrel monthly average in less than 5 months – right before elections. While it was noticeable at the time, it was hardly used then as a political stateme
http://peacefreedomprosperity.com/5738/on-oil-and-gas/After breaking $4 a gallon for a short time in may, the steady decline in gas prices... more
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GOP presidential contender Herman Cain is surging in the polls, but his support of Alan Greenspan is unlikely to win approval from his Tea Party fans.
At the Republican debate Tuesday night, Cain touted the former chairman as the best leader the Federal Reserve has had in the past 40 years, even though the controversial chairman has admitted that his decisions weren’t always right.
“The way Alan Greenspan oversaw the Fed and the way he coordinated with all of the Federal Reserve banks, I think that it worked fine back in the early 1990s,” said Cain, who served as chairman of the Federal Reserve Bank of Kansas City.
Greenspan, who retired in 2006, has admitted that he was partially wrong in putting his faith in the free market and that the economic crisis changed his ideology and view of the world.
“I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in firms,” he told a House Committee three years ago. “Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief.”
“I’ve found a flaw,” Greenspan said, when asked whether his ideology on free markets pushed him to make decisions. “I don’t know how significant or permanent it is. But I’ve been very distressed by that fact.”
Many economists blame Greenspan for pushing policies that aided the country’s downward economic spiral, specifically keeping interest rates low for too long and creating a bubble in the housing market....
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http://abcnews.go.com/blogs/politics/2011/10/herman-cain-praises-greenspan-at-risk-of-tea-party-support/GOP presidential contender Herman Cain is surging in the polls, but his support of... more
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Dagum
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At the GOP debate Tuesday night, Ron Paul, the longest-serving advocate of a Fed audit in Congress, asked Herman Cain, a former director of the Kansas City Fed, why he opposed an audit of the central bank, and why he called advocates of such an audit ignorant.
"Mr. Cain, in the past you have been rather critical of any of us who would want to audit the Fed. You have said -- you've used pretty strong terms, that we were ignorant and that we didn't know what we are doing, and therefore, there was no need for an audit anyway, because if you had one, you're not going to find out anything, because everybody knows everything about the Fed," Paul said.
"But now that we have found and we have gotten an audit, we have found out an awful lot on how special businesses get bailed out -- Wall Street, the banks, and special companies, foreign governments. And you said that you advise those of us who were concerned, and you belittled -- you say call up the Federal Reserve and just ask them. ... Do you still stick by this, that that this is frivolous, or do you think it's very important? Sixty-four percent of the American people want a full audit of the Fed on a regular basis."
Cain said that, in fact, he didn't oppose an audit, and that when he served on the Fed it was a different institution. "You have misquoted me. I did not call you or any of your people ignorant. I don't know where that came from," he said. "You've gotta be careful of the stuff you get off the Internet."
A careful check of the Internet, however -- guided by the Paul campaign -- turns up audio of Cain saying just what Paul accused him of saying. As recently as 2010, long after the Fed began engaging in the lending Cain says he opposed, Cain belittled those calling for an audit.
"Some people say that we ought to audit the Fed. Here's what I do know. The Federal Reserve already has so many internal audits it's ridiculous. I don't know why people think we're gonna learn this great amount of information by auditing the Federal Reserve. I think a lot of people are calling for this audit of the Federal Reserve because they don't know enough about it. There's no hidden secrets going on in the Federal Reserve to my knowledge,"....
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http://www.huffingtonpost.com/2011/10/11/ron-paul-herman-cain-fed-audit-gop-debate_n_1006228.htmlAt the GOP debate Tuesday night, Ron Paul, the longest-serving advocate of a Fed audit... more
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Dagum
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“I, David P Shirk, do solemnly swear that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; and that I will obey the orders of the President of the United States and the orders of the officers appointed over me, according to regulations and the Uniform Code of Military Justice. So help me God.” – August 8, 1998.
If there is one regret I have had in my lifetime, it was the utterance of those words. My intentions were good, after all, I wanted to protect people and serve them – just as so many I knew and respected who came before me. What I didn’t know at the time was my countries history (great job public school system), and the full actions taken by the government since its founding.
Before 9-11, I started seeing my job as having no real point. I was good at it to be sure, but could not see its use. We were not under attack, and the US seemed to be doing okay without using us. Then 9-11 happened, and everything changed. At first, I was eager to find the people responsible, and go earn my pay. Thank goodness my name was never called up for the task. I never would have thought at the time that the attack on the towers was the result of foreign meddling for the better part of 50 years.
Yet that one event set off a red flag in my head, and it was during that time tha.......
http://peacefreedomprosperity.com/5734/oathbreaker/“I, David P Shirk, do solemnly swear that I will support and defend the... more
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Wall Street Protesters Target the Federal Reserve
The “Occupy Wall Street” protesters have targeted the Federal Reserve as one of their central platforms.
The “Occupy San Francisco” branch of the protests is taking place – not in the Financial District, where the big banks are located – but in front of the San Francisco Federal Reserve bank.
High-Level Economists, Congressmen and Many Americans Want to End the Fed
This is not as radical and controversial as it might appear at first blush.
High-level economists support the Occupy Wall Street protests. And some very well-known economists also support ending the Fed......read more http://www.factoverfiction.com/article/4504Wall Street Protesters Target the Federal Reserve
The “Occupy Wall... more
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The Federal Reserve wants to know what you are saying about it. In fact, the Federal Reserve has announced plans to identify "key bloggers" and to monitor "billions of conversations" about the Fed on Facebook, Twitter, forums and blogs. This is yet another sign that the alternative media is having a dramatic impact. As first reported on Zero Hedge, the Federal Reserve Bank of New York has issued a "Request for Proposal" to suppliers who may be interested in participating in the development of a "Sentiment Analysis And Social Media Monitoring Solution". In other words, the Federal Reserve wants to develop a highly sophisticated system that will gather everything that you and I say about the Federal Reserve on the Internet and that will analyze what our feelings about the Fed are. Obviously, any "positive" feelings about the Fed would not be a problem. What they really want to do is to gather information on everyone that views the Federal Reserve negatively. It is unclear how they plan to use this information once they have it, but considering how many alternative media sources have been shut down lately, this is obviously a very troubling sign.The Federal Reserve wants to know what you are saying about it. In fact, the Federal... more
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October 7th 2011 will mark the 10 year anniversary of the war in the Middle East. This 10 years of war, has gone on for far too long.
War has a heavy cost, a heavy cost that we don’t think about in our daily busy lives. That cost is your children or your grandchildren dying before their time, being severely injured or mentally scarred for life.
War is your brothers and sisters being taught to kill other people — and to hate people who are just like themselves and who don’t want to kill anyone either.
War is your children seeing their friends killed before their very eyes or seeing their limbs blown off their bodies.
War is genocide; it is hundreds of thousands of human beings dying years before their time.
War is millions of people separated forever from their loved ones.
War is the destruction of homes which people worked for.
War is the end of careers that meant as much to others as your career means to you.
You cannot put a cost on a human life, but the financial cost on war is now running into the trillions of dollars. As illustrated by Cost Of War Dot Com.
War is the imposition of heavy taxes on you, other Americans, and on people in other countries — taxes that remain long after the war is over.
War is the suppression of free speech and the jailing of people who criticize the government.
War is the imposition of slavery when young men and women serve in the military.
War is goading the public to hate foreign people and races.
It is time to end the war and bring the troops home.
If you like the majority of Americans want to end the bombing and occupation of the Middle East.
Visit http://www.AntiWar.com, or Call Angela at: 1-323-512-7095
http://peacefreedomprosperity.com/5719/10-years-in-the-middle-east-is-far-too-long-antiwar/October 7th 2011 will mark the 10 year anniversary of the war in the Middle East.... more
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To the list of mega-corporations bailed out by the United States government, we now must add — Europe. In an announcement that rocked financial markets worldwide, the European Central Bank announced today a concerted effort in combination with four other major central banks — the Bank of England, the Bank of Japan, the Bank of Switzerland, and yes, the United States Federal Reserve — to use dollars rather than euros in an attempt to paper over the European Union’s economic woes.
Starting in October, the Federal Reserve and other major central banks will begin auctioning allotments of dollars to the European Central Bank, which will then use the new money to shore up shaky European megabanks. The allotments, which will have three-month maturities and will be structured like typical repurchase operations (“repos”), will be issued against euro-denominated collateral and repaid, with interest, in dollars. That, at least, is the theory.
Currency swaps involving the Federal Reserve and other central banks are nothing new, and have been a focal concern of Fed opponents like Congressman Ron Paul, who has long suggested that much of the Fed’s financial chicanery has been carried out in the form of such currency deals with foreign central banks, in total secrecy. This time around, the deal is being touted openly as an unprecedented exercise in international coordination by the world’s central banks, a decisive move to solve Europe’s long-running sovereign debt crisis.
Under the terms of the arrangement, the Fed and other central banks will deal with the European Central Bank, which will then disburse dollars to European commercial banks as it deems necessary. There is no cap on the amount of dollars that the Fed may provide to the ECB under the terms of the swap arrangment, which was first agreed to in principle in May 2010. An earlier swap facility, created by the Fed in 2007 in response to the global financial crisis, had expired in February 2010.
Christine Lagarde, managing director of the International Monetary Fund, applauded the upcoming currency swaps, telling CNBC that the action “shows they will do what it takes to maintain stability in the financial system.” John Ryding, a former economist for the Bank of England, also applauded next month’s launch as a sign that Europe’s finances were finally being brought under control. “They could open up the swap lines tomorrow if they wanted to,” Ryder told CNN. “By starting in almost a month's time, it looks like there's no clear present danger.”
The markets responded with ovations as well, with European bank stocks and American stocks generally being buoyed in the wake of the announcement. Wrote one analyst of the Fed’s participation in the latest action, “Given how weak the U.S. economy is right now, we think the Fed is cognizant of the spillover risks from a European banking crisis. Providing dollar funding appears to be a low cost option.”
As usual, the latest liquidity legerdemain from the Federal Reserve has elicited short-term effusions of optimism — surely this time, Bernanke and company will get it right! But currency swaps are just more smoke and mirrors designed to stave off — yet again — the inevitable collapse of Western economies drowning in debt and addicted to easy money and credit. This time around, the Fed isn’t “injecting liquidity” into domestic finance, but into European banks, with the ECB as an intermediary. While other banks will be able to offer the ECB some of their holdings in dollars, the Fed can simply print as many dollars as it pleases and dump them on gullible Europeans. The consequence, of course, will be further erosion of the dollar worldwide.
Since Bretton Woods in 1944, the United States has enjoyed the unexampled ability to print dollars at will and export them to the rest of the world. The result has been transgenerational inflation against a backdrop of boom and bust, with every economic crisis being an opportunity to turn on the printing presses. That the rest of the world has accepted this state of affairs for so long is perplexing, since it has allowed the United States to enrich itself at the expense of everybody else — or at least, everybody willing to accept American fiat currency.......
Continue at:
http://www.thenewamerican.com/economy/sectors-mainmenu-46/9011-federal-reserve-to-bail-out-european-banks-againTo the list of mega-corporations bailed out by the United States government, we now... more
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I’ve used the term “outrage fatigue” on numerous occasions as a way of explaining why there has been such a muted outcry from the general population, as the tally of financial atrocities committed against American citizens has exploded.
August 22 was just another average day with another average headline that could easily have been ripped from some radical economic watchdog website (liberal or conservative, either one): Wall Street Aristocracy Got $1.2 Trillion from Fed.
But the line wasn’t the work of someone out there on the anti-capitalist or anti-government fringe. It was attached to an article from the very mainstream Bloomberg News.
Bloomberg has been engaged in a long, frustrating FOIA litigation battle with the Federal Reserve over that entity’s reluctance publicly to reveal what it has been doing with our money. Slowly, the stone wall has been coming down. And looking at what’s behind it, it’s pretty obvious why the Fed would have preferred to keep its deeds locked away from all prying eyes.
Thus the above headline. And here’s an ugly truth that goes along with it: It’s a near certainty that the vast majority of those who saw it — probably not too many in number, since the story got scant coverage on the network news — said to themselves, Yeah, we already knew that. Ho hum.
Call it “bailout fatigue.”
Because, guess what? This is not a recycled story from last year. This is news that we didn’t know before the 22nd of just last month!
This money is not a part of the $16.1 trillion in emergency loans the Fed handed to US and foreign financial institutions between Dec. 1, 2007 and July 21, 2010, according to figures produced by the first-ever, one-time-only GAO audit of the central bank ordered by Dodd-Frank. Nor is it part of the $2 trillion quantitative easing program. Nor is TARP’s $700 billion in there, either.
Read that again. This $1.2 trillion — and perhaps we also have trillion fatigue, because that’s a lot of money — is separate from all that other stuff. It’s another hitherto secret funding program that we never would have heard of if Bloomberg hadn’t torn it from the Fed’s mouth like a rotten tooth........
Read on at:
http://dailyreckoning.com/a-raging-case-of-bailout-fatigue/#ixzz1XqizSzKiI’ve used the term “outrage fatigue” on numerous occasions as a way... more
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I have always been dead set against the federal reserve. I think the cartel should be completely abolished. Today. The banks that make up the federal reserve have done nothing but take the wealth of the nation and used it to destroy the lives of millions of people around the world and their day has come. We need to go back to the days of the "greenback" of Lincolns day and send the federal reserve packing.
That's where this gets really weird. On a whim I Googled "glenn beck federal reserve" and I found this video where Glenn Beck came out with the facts about the fed. I can't believe Faux News let this go out on the air.
I really hate Glenn Beck and his general agenda but he hit the nail on the head with this. I'm still wondering why he did this and how it actually got on the air with the Murdoch family running the show.
http://www.youtube.com/watch?v=eChJd9DobbwI have always been dead set against the federal reserve. I think the cartel should be... more
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Day0
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Methodology – a set or system of methods, principles, and rules for regulating a given discipline; the underlying principles and rules of organization of a philosophical system or inquiry procedure; a branch of pedagogics dealing with analysis and evaluation of subjects to be taught and of the methods of teaching them.
Policy – a definite course of action adopted for the sake of expediency, facility, etc; a course of action adopted and pursued by a government, ruler, political party, etc.; action or procedure conforming to or considered with reference to prudence or expediency.
In the army, training doctrine is drawn and taught with a methodology that is set forth as a policy. On the most basic of levels, it is slimmed down and simple. This is not because it assumes a new recruit is stupid. It is done because in order for a large body of people to act in a coordinated and efficient manner, the more synchronized they have to be. The only way to do this, is to teach all recruits the basics, and grind them so far in that what is learned becomes almost as natural as breathing. You are taught to obey, not to question. This is on the premise that th....
http://peacefreedomprosperity.com/5642/the-failed-policy-called-government/Methodology – a set or system of methods, principles, and rules for regulating a... more
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When Congress borrows money on the credit of the United States, bonds are thus legislated into existence and deposited as credit entries in Federal Reserve banks. United States bonds, bills and notes constitute money as affirmed by the Supreme Court (Legal Tender Cases, 110 U.S. 421), and this money when deposited with the Fed becomes collateral from whence the Treasury may write checks against the credit thus created in its account (12 USC 391). For example, suppose Congress appropriates an expenditure of $1 billion.
To finance the appropriation Congress creates the $1 billion worth of bonds out of thin air and deposits it with the privately owned Federal Reserve System. Upon receiving the bonds, the Fed credits $1 billion to the Treasury’s checking account, holding the deposited bonds as collateral. When the United States deposits its bonds with the Federal Reserve System, private credit is extended to the Treasury by the Fed. Under its power to borrow money, Congress is authorized by the Constitution to contract debt, and whenever something is borrowed it must be returned. When Congress spends the contracted private credit, each use of credit is debt which must be returned to the lender or Fed. Since Congress authorizes the expenditure of this private credit, the United States incurs the primary obligation to return the borrowed credit, creating a National Debt which results when credit is not returned.
However, if anyone else accepts this private credit and uses it to purchase goods and services, the user voluntarily incurs the obligation requiring him to make a return of income whereby a portion of the income is collected by the IRS and delivered to the Federal Reserve banksters.
Actually the federal income tax imparts two separate obligations: the obligation to file a return and the obligation to abide by the Internal Revenue Code. The obligation to make a return of income for using private credit is recognized in law as an irrecusable obligation, which according to ‘Bouvier’s Law Dictionary’ (1914 ed.), is “a term used to indicate a certain class of contractual obligations recognized by the law which are imposed upon a person without his consent and without regard to any act of his own.”
This is distinguished from a recusable obligation which, according to Bouvier, arises from a voluntary act by which one incurs the obligation imposed by the operation of law. The voluntary use of private credit is the condition precedent which imposes the irrecusable obligation to file a tax return. If private credit is not used or rejected, then the operation of law which imposes the irrecusable obligation lies dormant and cannot apply.
In ‘Brushaber v. Union Pacific RR Co.’ 240 U.S. 1 (1916) the Supreme Court affirmed that the federal income tax is in the class of indirect taxes, which include duties and excises. The personal income tax arises from a duty — i.e., charge or fee — which is voluntarily incurred and subject to the rule of uniformity. A charge is a duty or obligation, binding upon him who enters into it, which may be removed or taken away by a discharge (performance): ‘Bouvier’, p. 459.
Our federal personal income tax is not really a tax in the ordinary sense of the word but rather a burden or obligation which the taxpayer voluntarily assumes, and the burden of the tax falls upon those who voluntarily use private credit. Simply stated the tax imposed is a charge or fee upon the use of private credit where the amount of private credit used measures the pecuniary obligation.
The personal income tax provision of the Internal Revenue Code is private law rather than public law. “A private law is one which is confined to particular individuals, associations, or corporations”: 50 Am.Jur. 12, p.28. In the instant case the revenue code pertains to taxpayers. A private law can be enforced by a court of competent jurisdiction when statutes for its enforcement are enacted: 20 Am.Jur. 33, pgs. 58, 59.
The distinction between public and private acts is not always sharply defined when published statutes are printed in their final form: Case v. Kelly, 133 U.S. 21 (1890). Statutes creating corporations are private acts: 20 Am.Jur. 35, p. 60. In this connection, the Federal Reserve Act is private law. Federal Reserve banks derive their existence and corporate power from the Federal Reserve Act: Armano v. Federal Reserve Bank, 468 F.Supp. 674 (1979).
A private act may be published as a public law when the general public is afforded the opportunity of participating in the operation of the private law. The Internal Revenue Code is an example of private law which does not exclude the voluntary participation of the general public. Had the Internal Revenue Code been written as substantive public law, the code would be repugnant to the Constitution, since no one could be compelled to file a return and thereby become a witness against himself.
Under the fifty titles listed on the preface page of the United States Code, the Internal Revenue Code (26 USC) is listed as having not been enacted as substantive public law, conceding that the Internal Revenue Code is private law. Bouvier declares that private law “relates to private matters which do not concern the public at large.”
It is the VOLUNTARY use of private credit which imposes upon the user the quasi contractual or implied obligation to make a return of income. In ‘Pollock v. Farmer’s Loan & Trust Co.’ 158 U.S. 601 (1895) the Supreme Court had declared the income tax of 1894 to be repugnant to the Constitution, holding that taxation of rents, wages and salaries must conform to the rule of apportionment.
However, when this decision was rendered, there was no privately owned central bank issuing private credit and currency but rather public money in the form of legal tender notes and coins of the United States circulated. Public money is the lawful money of the United States which the Constitution authorizes Congress to issue.........
Continue at:
http://bit.ly/qWrNIvWhen Congress borrows money on the credit of the United States, bonds are thus... more
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Aaron Russo exposes the IRS, Federal Reserve and banking system and the transformation of America from a once free and constitutional abiding nation to an Orwellian police state. The film thoroughly examines the continuous erosion of civil liberties from the American people under the guise of “safety and protection” and steps the State is taking to overcome this, which includes the tracking and tracing of every citizen using RFID microchips. http://www.factoverfiction.com/article/3420Aaron Russo exposes the IRS, Federal Reserve and banking system and the transformation... more
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Nation of Change
Richard (RJ) Eskow,
Op-EdPublished: Friday 26 August 2011
Op-Ed: “We've just learned about the Federal Reserve's extraordinary secret bailout of the country's big banks. We now know that the TARP bailout program was only the tip of the iceberg, and that financial institutions received a total of $1.2 trillion in loans and other funds while the rest of the country was left to struggle for economic survival. We also know that, despite all that "we got our money back" rhetoric, these loans represent a cash giveaway to the banks that totals up to tens of billions of dollars - while homeowners and student loan borrowers continue to struggle. Here's what we now know about this secret bailout, thanks to a Bloomberg report, along with what we already knew - and what we still don't know.”
(Read the entire article @ http://www.nationofchange.org/what-expose-feds-secret-bailout-told-us-and-what-it-didnt-1314371868)
Join NationofChange today by making a generous tax-deductible contribution and take a stand against the status quo.Nation of Change
Richard (RJ) Eskow,
Op-EdPublished: Friday 26 August 2011... more
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Whoever would have thought in the 1980’s that a free market capitalist and a KGB agent would have arrived at the same conclusion being from opposite views and backgrounds? When I was pinging emails back and forth with Igor Panarin, I was attempting to find out more details on how he predicted the collapse of the U.S. Empire in 2012 – a stance he took as a KGB agent in the 80’s. What I found most interesting was that his claim was based largely on our economic policy combined with our foreign policy.
He mentioned that it was during the 80’s that the loss of economic power in Russia was realized due to the centralized monetary policy, and foreign policy of Russia. While Panarin is definitely no fan of free market capitalism (a fact he makes plain in his writings and speeches), he at the very least made it clear that a nation that employs a centralized monetary policy in the hands of private banks, will always carry negative impact to the host nation. And for the record, the free market capitalist was a much younger Ron Paul (and yes, they laughed at him then to).
One primary reason for this is that the banks that control the economic policies of the host nation have no real loyalty to that nation – their one goal will only be to bleed it dry before moving onto the next up and coming nation.
It always starts the same way. The banking board will assume control of the nation’s money policy claiming that they will both provide stability to its currency, and maintain a stable market atmosphere. Typically the nation that allows this has a good supply of gold. The banking board (in our case the Federal Reserve), will start out by basing the value of the nation’s currency off of the supply of gold it has (being that gold is the most highly valued of all common commodities). This is the beginning of what is known as a specie backed currency.
Over the following decade(s) of its implementation, the central banks realize that they will not be able to make much more profit should the fiat currency remain based on a set amount of specie. After all, specie itself is rare, and not easy to come by. So they tout to the host nation that for its lending to expand (and thus produce growth) to a meaningful extent, that a new economic policy must be adopted. The only way for the central board to maintain its hard valued income, is to use fractional reserve banking. This means that it no longer lends out only the money it has, but adds more money to the books, and only requires that the branch banks have 10% in reserve. Put even more simply, it means that for a branch bank to get 10,000 dollars to lend, it only needs 1,000 in its reserves.
Most people never even bother to think about this, and then wonder why this technique faces so much opposition. After all, they are told that the central banks allow for lending needed for economic growth. They are told that with this system, companies and individuals alike may borrow money, and use it to invest in a potential increase in productivity. Indeed having such available credit with little money down seems like a dream come true. Increasing the false feeling of prosperity is the rapid expansion that follows – usually due to a new technology or booming market sector. Thus people accept it as being the perfect system that allows a people to live civilly and comfortably at the same time. When this mindset is adopted, the damage starts and never ceases – here’s why.
People overlook the fact that in such an economic scenario, that the money lent out does not physically exist – and is nothing more than some entries on a ledger. These entries are not available for public view, and are only able to be tracked on the website as to the money supply in general. It is important to note that the amount of currency printed differs greatly from the money supply on the books. Our Federal Reserve is the perfect example of this full scenario.
Over this time, the host nations gold supply dwindles to a fraction of what it once was. War expenditures, payments to the private central bank for its services etc, have all contributed to this. Thus the next problem is realized for the red flag it should have been all along – that is the host nation now only has paper to pay its debts. Being that the gold supply is now insufficient to payoff these debts, the government of the host nation makes the blunder of taking the last remnants of its wealth off of the table completely, and bases its currencies value off of the nations productivity in general. It then crosses its fingers and hopes that the productive capacity of the nation stays high and maintains growth in line with the inflation of its paper currency. This is where things grow from bad to worse.
In a nation where people are comfortable in the idea that the government is comprised of worthy leaders, and looks to them to solve every problem under the sun from poverty to obesity to regulating entertainment, this gets very bad very quickly. As the host nations money is worth less, foreign goods that the people have come to value so much goes up in price. Ditto with energy as the nation relies on foreign oil etc. The people of said nation love their environment and equality regardless of merit, so they refuse to drastically cut taxes on businesses, as well as regulations on energy production here at home. After all, without all that funding, how on earth could their government continue to be benevolent to the poor and oppressed by the greedy capitalists here at home and the evil warlords overseas? Also the environment is in great danger, so we cannot possible allow for private entities to see to our energy needs on our own soil. So people do as they believe is right, and turn to their elected ‘leaders’ to help.
The leaders help alright. They cannot tax people enough to meet their current demand (let along future expenditures) without inciting a full blown revolution and wide spread riots, so they increase their amount of debt. Because the central bank has its false wealth tied up with the governing bodies, the lending in the private sector continues to lag – which is not usuall.....
.........Funny how we have claimed a free market system for nearly the last hundred years, but have actually had a de facto nationalized banking system at its core.....
http://peacefreedomprosperity.com/5562/ecomomic-suicide-why-easy-money-ends-up-being-worthless-money/Whoever would have thought in the 1980’s that a free market capitalist and a KGB... more
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