The United States could easily print her own money, and maintain control of both, the money supply, and interest rates. Instead, every (paper) dollar in circulation is borrowed from commercial banks (at interest), who are linked to the Fed, or Central Bank.
The Fed is a very secretive private institution. The Fed came into being in 1913 in the aftermath of market manipulation by JPMorgan which resulted in the 1907 financial crisis. The banking cartels basically bought off some members of Congress, and also bankrolled the campaign of president Woodrow Wilson, who promptly signed The Federal Reserve Act, which had been written in secrecy by the most powerful bankers of the time (Morgan, Rothschild, Rockefeller).
In order to understand how damaging to the country the creation of the Fed was, one only has to consider the following quote by Congressman Louis T. McFadden on the Federal Reserve Corporation during a speech in Congress in 1934:
Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.
This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.
Some people who think that the Federal Reserve Banks United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lender. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.
The emphasis is mine
Here's how the century-old scam works... Because the Fed can print (fiat) money at will, it can control both the money supply and the interest rates.
So at certain intervals, it engages in quantitative easing or enlarging of the money supply, which results in a fast expansion of credit (debt being the principal mean by which this private banking cartel exploits the society).
When the level of debt (both, private and public) has reached a saturation point, historically what the Fed has done has been to contract the money supply, which brings about recessions of depressions.
This is very important... The banksters, the member banks, the FED, have the power to print as much money as they want, and to set interest rates.
They then push this money unto the economy through various loans and financial instruments (to government, municipalities, individuals).
Then at certain intervals, the Fed diminishes the money supply (among other actions), which precipitates economic recessions/depressions.
This then sets the stage for the banksters to acquire real assets for pennies on the dollar (once entire sectors of the economy collapse).
Here's how Charles A. Lindbergh saw it...
The new law will create inflation whenever the trusts want inflation. It may not do so immediately, but the trusts want a period of inflation, because all the stocks they hold have gone down... Now, if the trusts can get another period of inflation, they figure they can unload the stocks on the people at high prices during the excitement and then bring on a panic and buy them back at low prices.…The people may not know it immediately, but the day of reckoning is only a few years removed.”
(Congressman Charles A. Lindbergh, referring to the Federal Reserve Act. Congressman Lindbergh stated this a few years prior to the stock market crash in 1929 which ushered in the Great Depression Congressional Record, Vol. 51, p. 1446. December 22, 1913.)
The emphasis is mine
These folks saw the writing on the wall as soon as this corrupt entity, the FED, was created (given its structure, secrecy, and private ownership).
Are you going to let these thieves get off scot free? Is there one law for the looter who drives up to the door of the United States Treasury in his limousine and another for the United States Veterans who are sleeping on the floor of a dilapidated house on the outskirts of Washington?
-- Congressman, Louis T. McFadden / Remarks in Congress, 1934
And even during the squalor, the looting continued in the aftermath of the Great Depression, when the Fed spearheaded the end of the gold standard, and everyone had to
turn in their gold.
Executive Order 6102 is an executive order signed on April 5, 1933, by U.S. President Franklin D. Roosevelt "forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation.
The order was rationalized on the grounds that hard times had caused "hoarding" of gold, stalling economic growth and making the depression worse.[1] The New York Times, on April 6, 1933 p. 16, wrote under the headline "Hoarding of Gold", "The Executive Order issued by the President yesterday amplifies and particularizes his earlier warnings against hoarding. On March 6, taking advantage of a wartime statute that had not been repealed, he issued Presidential Proclamation 2039 that forbade the hoarding 'of gold or silver coin or bullion or currency,' under penalty of $10,000 and/or up to five to ten years imprisonment."
And so once the gold standard was abolished, money became just legal tender not backed up by any real asset (i.e., gold). This in turn cemented "debt" (to governments, businesses, and individuals) as the most important product of the central banking system.
Of course, after the Great Depression, some safeguards (Glass–Steagall Legislation) were put in place to protect the nation against this type of predatory behavior by banksters, and for the next 40-plus years things were pretty stable... Until Clinton repealed it by signing the Gramm–Leach–Bliley Act (Financial Services Modernization Act of 1999).
And the rest, as they say, is history... The repeal of the Glass–Steagall Act set the stage for another round of looting by the Fed and the Wall Street criminal racketeering cartel...
This lead to the 2008 financial crisis following the same formula of first flooding the market with easy money (in the form of collateralized debt obligations), and then when the inevitable market collapse happened, once again the banksters swooped in and took millions of people's homes (real assets) on the cheap.
On top of that, the banksters held the country hostage, and lied to justify their demand for $700 billion with a 3-page ransom letter.
But that's not all; on top of that, the Fed printed at least $13 trillion dollars and sent that over to the criminal banks almost interest-free, secretly. Remember, fiat money; they can just print it and send it over to the banks... While the rest of the country remains in economic depression, and while real assets have been looted and transferred over to the banks.
And they are not done yet... This is why I've been arguing for some time now that to these criminal bansksters, default on the U.S. national debt would only means more profit as borrowing interest rates will skyrocket.
And if a default brings about an actual economic depression, it would just mean more opportunity for them to acquire more real property/assets on the cheap, helping bring about some sort of neo-feudal system.
Finally, remember, the U.S. Fed is only one of 60 central banks that are members of Bank for International Settlements, another highly secretive and unaccountable organization controlled by some of the most powerful banking families in the world.
Regarding the current situation with the government shutdown, and the looming debt ceiling crisis, of course we don't know how's going to unfold. We are all hoping that cooler heads prevail so get resolved.
But my point here is that if the past is prologue, any cataclysmic financial collapse brought about by a series of events, like an extended government shutdown, and a default on the government debt, would ultimately benefit what is in the final analysis are supra-national financial cartels (the FED, Bank of America, JPMorgan Chase, Goldman Sachs).
Also, the panic and social unrest it would cause would bring about the perfect conditions for activating the surveillance police state that has been built during the last fifteen years or so.
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