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Nightmare Scenario: The Fed Outlives the US Federal Government
ZeroHedge ^ | 10/02/2010 | mikla

Posted on 10/03/2010 8:17:48 PM PDT by tired1

Many assume that the Fed would not survive a dissolution of the US Federal Government. However, that is not true: The Fed will only dissolve when its intellectual property (e.g., the "dollar") no longer has value, and the Fed shareholders decide to liquidate assets. If people still want dollars, the Fed exists. Since the dollar is an unsecured claim on Fed assets, even if people do not want dollars, the Fed remains one of the largest real property owners in the United States (through its mortgage securities and stock market holdings).

(Excerpt) Read more at zerohedge.com ...


TOPICS: Business/Economy; Conspiracy
KEYWORDS: zerohedge
You cant kill the un-dead.
1 posted on 10/03/2010 8:17:50 PM PDT by tired1
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To: tired1

Interesting.


2 posted on 10/03/2010 8:22:15 PM PDT by counterpunch (End the Government Monopoly!)
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To: tired1

Yup, and one of them has eaten this author’s brain.


3 posted on 10/03/2010 8:22:24 PM PDT by 1rudeboy
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To: tired1

They don’t own MY house.


4 posted on 10/03/2010 8:23:30 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: tired1
Since the dollar is an unsecured claim on Fed assets

Try explaining this to the average dolt.

5 posted on 10/03/2010 8:25:05 PM PDT by Huck (We need the spirit of '76, not the spirit of '87)
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To: tired1

It could perhaps survive as a corporation. But the Fed wouldn’t last a day as a bank, let alone a central bank, without the governments legal tender laws.


6 posted on 10/03/2010 8:25:09 PM PDT by SeeSharp
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To: tired1

One of the founders of the Rothschild dynasty is supposed to have said something like “Give me the power to control a nation’s money system, and it doesn’t matter who writes or controls its laws...”


7 posted on 10/03/2010 8:27:14 PM PDT by wendy1946
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To: wendy1946

“Give me control of a nation’s money
and I care not who makes the laws.”


8 posted on 10/03/2010 8:31:48 PM PDT by tired1 (Federalize the Fed)
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To: Secret Agent Man

A govt somewhere has first dubs on it. It could never be paid off.


9 posted on 10/03/2010 8:32:15 PM PDT by Orange1998
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To: tired1

A simple switch to silver coins would end the fed. not too complicated.


10 posted on 10/03/2010 8:51:14 PM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: mamelukesabre

I can see people implementing such solutions on a local scale in the iimediate future. In fact, I’ve been trying to figure ways to implement such practices.


11 posted on 10/03/2010 9:22:32 PM PDT by tired1 (Federalize the Fed)
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To: SeeSharp; wendy1946
It could perhaps survive as a corporation.

It already is a private corporation and always has been since its founding.

Here's an idea: have Congress de-authorize the Fed, and pull its corporate charter, so that the shell entity, asset-less Fed whose US debt was all denominated in Federal Reserve Notes is stuck with the obligation to pay all the debt it then holds.

The US re-asserts its abrogated Constitutional power to coin money (silver) and regulate the value thereof backed by a basket of assets to include national (now also completely de-regulated in this scenario) oil wealth, et. al.

World bankers are on the hook for the phony value of all the phony fiat paper the Fed ever issued. Those assholes could charge themselves paper asset interests til the cows come home, or more likely the Fed just declares insolvency and folds.

America's backed dollar becomes the bed rock world reserve currency as fiat money around the globe collapses.

Sound like a plan?

Imagine the look on Soros and all the Rothschild remnant family bankers faces.

Andrew Jackson de-chartered the euro-controlled Bank of the United States in 1832. A recession happened in 1837, but we made it through that and dealt with Barbary pirates at the same time and the Mexicans shortly thereafter.

The euro bank houses tried to get their money back by financing the trade to support the South in the Civil War, split the Union and re-claim all then assets -- a divide and conquer strategy -- and they failed because Lincoln financed his end of the war with United States Notes, better known as "Lincoln Greenbacks."

History can repeat, and indebtedness to this current cabal who trade on margins and practice theivery-through-currency-debasement. Perpetual indebtedness need not be our gandchildrens' fate.

And the President brave enough to stand up to them, like Lincoln (or even Kennedy who wanted to declaw the Fed -- and I am no Kennedy fan either), may take a bullet for it too.

FReegards!


12 posted on 10/03/2010 9:37:23 PM PDT by Agamemnon (Intelligent Design is to evolution what the Swift Boat Vets were to the Kerry campaign)
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To: mamelukesabre

Do you know how much those coins are worth in today’s silver valuation?

A thousand dollars ($1000.00) face value worth of American silver coinage costs thirteen thousand dollars ($13,000.00) today when purchased as junk silver!


13 posted on 10/03/2010 10:24:48 PM PDT by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
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To: Orange1998

Nopw. No loans on it.


14 posted on 10/04/2010 12:45:02 AM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: tired1
Since the dollar is an unsecured claim on Fed assets

The "dollar" isn't a claim on anything. This article is wrong. (And it's not a dollar either.)

ML/NJ (in Jerusalem)

15 posted on 10/04/2010 12:56:35 AM PDT by ml/nj
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To: tired1
Many assume that the Fed would not survive a dissolution of the US Federal Government. However, that is not true: The Fed will only dissolve when its intellectual property (e.g., the "dollar") no longer has value,...

The Federal Government itself will exist until the dollar loses all value, so it and the Fed are lashed to the same mast.

16 posted on 10/04/2010 3:04:24 AM PDT by The Duke
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To: Agamemnon
The US re-asserts its abrogated Constitutional power to coin money (silver) and regulate the value thereof backed by a basket of assets to include national (now also completely de-regulated in this scenario) oil wealth, et. al.

Government at some level ought to be creating ALL of the money in use and not just metal coins.

For the last hundred years we've all been paying interest on money which banks create out of thin air and loan into circulation. Governments could as easily create money them self and no interest would be due. The biggest problem which US governments have had in the past with fiat money was the British counterfeiting it and in todays age when 97% of all money exists as computer entries, that would be a lot harder.

17 posted on 10/04/2010 4:42:56 AM PDT by wendy1946
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To: wendy1946
For the last hundred years we've all been paying interest on money which banks create out of thin air and loan into circulation.

Banks don't create money out of thin air. Every loan is fully funded. Deposits are larger than loans.

Governments could as easily create money them self and no interest would be due.

Is interest due on the $20s in your wallet? Who do you pay? How much?

18 posted on 10/04/2010 6:15:37 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

Don’t you ever get tired of exposing yourself as an idiot?


19 posted on 10/04/2010 7:01:52 AM PDT by wendy1946
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To: SatinDoll

What I don’t understand is why you think you made any kind of point whatsoever.


20 posted on 10/04/2010 8:51:57 AM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: wendy1946
The Brits debased Colonial currency -- effectively cutting the real price at which Colonists sold product back to the UK in half.

You are right: the tea tax was just a poster child for the unrest "brewing" over here.

There were also the Townshend Act and the Intolerable Acts all exrtracted for the purpose of propping up the East India Company and the BofE who financed them.

Franklin has often been credited with observing: "The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction."

The Stamp tax and Tea tax were as emblematic of the plight of colonists back then as is the Income tax for us today.

The bank at issue then was the Bank of England, chartered as it was a mere 60-70 years before (in 1694 actually) the American revolution.

The story is still the same: currency manipulation now as then.

Rothschilds made a killing through short selling and insider trading on the outcome of Napoleaon's defeat and Britain's subsequent war indebtedness. Jackson saw the same thing would happen here and killed the BofUS charter. War in Mexico indebted Maximillian to the Rothschilds, who was became a menace to Lincoln. they failed to permanently divide the US.

The last attempt to control US indebtednes from Europe was opposed by the "free silver" movement. It's what William Jennings Byran's 1896 "Cross of Gold" speach was all about. He like Kucinich today was overcome by political progressivism in the name of independent populism -- though I will give him credit for winning the debate against John Scopes -- though Hollywood doen't recount the story that way.

I don't know what Bryan's position was on the Federal Reserve Act.

FReegards!


21 posted on 10/04/2010 9:18:37 AM PDT by Agamemnon (Darwinism is the glue that holds liberalism together)
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To: wendy1946

I never get tired of pointing out your errors.


22 posted on 10/04/2010 9:58:25 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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