Nightmare Scenario: The Fed Outlives the US Federal Government

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).

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!

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