It was Abraham Lincoln who followed his Constitutional right to coin a US currency. President Lincoln created US Greenbacks from 1862–1871, printed by the US mint, delivered to the US Treasury to conduct and pay off the Civil War debt. Yet, after his tragic (if not related) assassination, the country returned and departed again from private banking systems.
President William McKinley, as Ellen Brown writes in her fine book, The Web of Debt, “was a protectionist who favored high tariffs to keep these marauding British free-traders out” and pay for a US Government currency. “When he was assassinated in 1901, no conspiracy was proved; but some suspicious commentators saw the invisible hand of British high finance at work.” And so the battle continued.
By 1913, the Federal Reserve Act was conjured up on Jekyll’s Island in Georgia by JPMorgan and the Rockefellers and later pushed through Congress. The Federal Reserve Act mandated the creation of a Federal Reserve System, made up of 12 regional banks, which would print our money and lend it to us with interest, in the form of debt notes called dollars. It was the biggest scam in US financial history. Wiki adds, “According to the Board of Governors, the Federal Reserve is independent within government in that ‘its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government.’”
John F. Kennedy wanted to eliminate the Fed and have the government print its own dollar currency pegged to silver coins. “On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed [by JFK] with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest.” He too was tragically assassinated (for that and other reasons) and we returned to the Federal Reserve System. Thus, the Globalist war-making led by US banking titans, the Morgans and Rockefellers, has had a huge effect in damaging our country and people, which continues to this day.
For many years, the dollar was pegged to gold reserves. But President Nixon cut loose the dollar from gold internationally in 1971. The French threatened to make a run with their US dollars on our gold. And going forward, the US wasn’t sure there was enough gold to supply our rapidly expanding currency. Also, gold itself is subject to price volatility and vulnerable to speculators. Thus, we were left a fiat “let it be done” currency.
The cash and interest we pay the Fed for each dollar debt note cumulatively forms a large portion of our national debt, whose clock as of 3/2/2011 is over $14.2 trillion. Eliminating the Fed and its board of bankers or nationalizing them would go a huge way to cutting the US debt plus interest we pay the Fed for creating and controlling our money supply. It has grown so large that just servicing the daily interest could become impossible soon and the US would have to officially declare bankruptcy. But there is time to act for change.
The Fed’s Chairman Ben Bernanke meets mostly in secrecy with the Fed’s 12 Central banks. The Fed is controlled largely by the New York Central Bank, the most powerful of the Central Banks, whose majority stock of 53 percent is owned by JPMorgan Chase and Citigroup.
Curiously these two banks have the largest exposure in derivatives. The biggest player, according to Ph. D. Martin Weiss, is “JPMorgan Chase, with $57 trillion in notional value. Its total credit exposure adds up to $660 billion, a stunning 748 percent of the bank’s risk-based capital. In other words, JPMorganChase is risking $7.48 for every dollar of its net worth. All it would take is for 13.35 percent of its derivatives to go bad . . . and JPMorgan’s capital would be wiped out, gone . . . Citibank isn’t far behind—with $4.24 at risk for every dollar of capital, more than double what it was just a few years ago.
“These two banks are prime candidates for receivership, and the FDIC might not have to wait for a massive derivatives crisis in order to proceed. It might just need to take a close look at the banks’ books. BTW, the banks were both defendants in the Enron scandal . . . and charged with fraudulently cooking their books to make things look rosier than they were . . . To avoid judgment, they wound up paying $300 million to settle the suits . . . evidence in the case clearly showed fraudulent activities . . .”
The led banking expert John Hoefle to comment, “This is not an academic question, as the Fed is actively involved in looting the American population for the benefit of giant US and global institutions and the global casino. Few Americans have any idea the extent to which the Fed and its system reach into their pockets on a daily basis, and the extent to which their standard of living has been eroded by the financier-led deindustrialization of the United States . . .” As a result, Hoefle suggests a tax, even a tenth of a percent on all derivatives, to expose them, which would also be a significant income stream to the US Treasury.
The key to the problem is the “fractional-reserve” lending system of the Fed
Like all banks, the Fed took a lesson from the goldsmiths of the 17th Century who held gold for their community as well as their own gold. They soon realized that only some 10 percent to 20 percent of the gold was out at any time. Therefore they could lend the balance many times over and profit many times over.
This same ‘fuzzy math’ was applied to the banking system, allowing commercial banks to keep a fractional balance of 10 percent (or less) on their assets and lend the balance over and over. Thus, they produce money literally out of air. In 1929 when the stock market crashed, a panic stampede for deposits came as banks failed, crushed as their underfunded Ponzi-like “reserves” crumbled. Of course, all those who had money deposited in banks were royally taken. Others went under, having leveraged themselves into oblivion on extended margin (power to borrow, debt-for-credit). It was not a pretty picture.
Today that picture endures with things like speculation, which alternately devalues or overvalues companies, currencies, food supplies, to control, purchase and dump them for a profit. There is even naked speculation, using electronic media that can counterfeit someone else’s securities as yours to use for speculation. That’s why it’s called naked. You have nothing on, but stolen asset equity on a computer screen. This technique is used amply by the thousands of hedge funds that serve as money makers for commercial as well as investment banks, most of them deposited in the Cayman Islands where there is little or no regulation and the corpse of Ken Lay takes the sun.
These activities are aided and abetted by the Fed’s debt-for-credit money that comes out of loan transactions and poured into the banking and financial system’s ongoing bailouts, some known, many unknown, but enough to have nationalized the banks by now, reports Ellen Brown. The US taxpayers have picked up the tab and walked away, dreading the prospect of more debt, innovated by the banks and financial system to support their flagging sources of business. This in part comes from the huge loss of manufacturing, diminishing job creation through capital loans to private industry, the outsourcing of millions of American jobs for cheaper production in China and other Third World nations.
Thus, we rely largely on “debt products” to keep the US financial system afloat. Through it all, once again, we can trace “the invisible hand” of laissez-faire, free market capitalism sinking America.
This is where we stand, as Brown points out, where financial institutions can qualify for bailouts from the FDIC (Federal Deposit Insurance Commission), If truth be told, FDR had in mind solely coverage for individuals when he created the act. But then the continuous employment of the fractional-reserve lending System has allowed for money to be created by the Fed out of air for airy purposes.
Add to that, ongoing injections of capital from the Fed to investment and commercial banks when deposits or other income streams lag. These “shots in the arm” come as investment banks sell their own portfolios, lend money, hedge and speculate, ignoring their clients to supply credit for their own gains. This includes playing the Casino economy of derivatives, betting on real assets moving up or down, and/or insuring those results to win or lose. Underneath all this movement, this paper wealth, this stealth theft, are the taxpayers whose taxes are the only real money flowing through the systems of various banks, local, commercial, investment or Central.
The bankers today produce endless products to encourage debt-for-credit and its interest. Their losses are phenomenal thanks to derivatives and have been socialized with taxes, their profits (not as large as they seem) are privatized. Bottom line, this is because business stinks, the tank is empty, we’re stalled, broke, going nowhere fast, except down the hill to hell in a hand-basket, thanks to the Fed and the fractional-reserve system that props up this financial ‘Wizardry of Oz’ which Ellen Brown explains in such great detail.
Of course the oil companies have their oil to peddle, so they create petrodollars. The military-industrial complex have their wars to peddle, Iraq, Afghanistan and Pakistan, backed by cart blanche to borrow and spend for military allocations, debt-for-credit to build WMD, including those of financial destruction. Again, the taxpayer is the slave that built the pyramid on the dollar bill with the wide open eye of the financial predator on top looking for more opportunities. And the young are those who must give the capital of their blood and lives to support these wars in combat.
Contrasted is the fact that the too-big-to-fail-banks (which should fail and fall) do not, but are propped up by government bailouts as they continue to pursue derivatives, bets based on non-ownership of what’s being bet on, including the endless search for exotic income-as-debt-generating scams. For instance, subprime loans to purchase automobiles were recently added to their list.
Believe it or not, we didn’t learn from the sub-prime housing bubble. The auto bubble now inflating brought an increase of 895,000 new cars sold in 2010, creating a 60 percent increase in sales to subprime buyers, folks who don’t really qualify for those loans. Wait till the car bubble bursts like a flat tire and the economy crashes again. It only proves that the banks and financial system learned nothing from their previous crimes. It helps that nary a one of them has gone to jail—or that the Fed can keep producing money out of debt and air to feed them.
We also have the various types of mortgages that cost two to three times the price of the houses that the banks really own. You can have credit-first mortgages, where you try to eliminate debt first, good luck, and you have the opposite, where you start paying on the capital immediately, until your time runs out and the debt explodes into gi-normous payments that cause you to default, walk away, lose your house and equity.
The possibilities are endless, as Master Charge says, endlessly heart-breaking and wallet-breaking. Then, too, the mortgage dealers can bundle these subprime failures, especially the worst of them, the guaranteed-to-fail, into securities and send them upstream to investment banks to sell as bona fide investment vehicles. These help to destroy small investors, or large mutual funds, college or state investment funds, name it. This is all part of the Globalist, bank-and-finance controlled war on these United States of America. George the III must be speechless in eternity as well.
Essentially the banks move Treasury money funded by taxes through a broken financial system to and from the Fed and its coffers. These same people love to say that entitlements like Social Security and Medicare, which pay for themselves and then some are the problem. And unions, which provide a voice for collective bargaining, are the problem. And union workers, who are collecting promised pensions, for which they duly worked at less than corporate wages, are also the problem. There are many problems, except the banking and finance cartel itself, and the Fed, whose only product is debt-for-credit. Credit, too, for foreign nations with compounded interest that will cripple them, so that their assets taken as collateral are privatized.
These not-so-gentlemanly millionaires and billionaires, live off the interest gained from ubiquitous debt-for-credit. Interest that rises like dough, compounded in credit bills, paid with the banks’ muscle for ruthless collection. This is what the Globalists’ New-World-Order is up to, a war against the middle class and working classes and the poor. The scams above are only a few of the weapons used daily, even to control the stock and bond markets, to manipulate, speculate, derail, crush and raise them, so long as they, the Globalists have the inside track to profit as the little guys fail. It’s that cruel.
The Globalist bankers and financiers want to own and control every country on the globe, have it all under one umbrella, the Rockefeller’s and Morgan’s, in the name of the IMF (International Money Fund), the World Bank, or the United Nations, et al. This makes it imperative to get rid of or nationalize the Fed first.
Destroy the paradigm of debt-as-credit and replace it with money and bonds issued by the US Government. Minus the Federal Reserve’s bill for cash and debt payment, the US National Debt should decrease enormously and quickly. The US Treasuries created with the new Greenback currency can refund all loans electronically. The surviving banks that distribute the new Greenback currency will be able to loan it with little or no interest for a green economy, farming, infrastructure, healthcare, education, science, art, homes, exploring for new sources of sustainable energy, investment capital for small or large businesses. Name it.
In fact, so much money in interest can be saved that at some point we might be able to eliminate the income tax. Additionally, there will be loans and financing for whatever needs financing. This Greenback currency will be pegged to a basket of our natural resources, food supplies, forest land coast to coast, and other natural resources as gold once did. It’s a great idea. Think about it, toppling the Fed’s Globalist attack. And it’s definitely doable. In fact, it is essential to our survival as a nation.
Jerry Mazza is a freelance writer, life-long resident of New York City. An EBook version of his book of poems “State Of Shock,” on 9/11 and its after effects is now available at Amazon.com and Barnesandnoble.com. He has also written hundreds of articles on politics and government as Associate Editor of Intrepid Report (formerly Online Journal. Reach him at firstname.lastname@example.org.