Posted on 07/03/2009 7:56:30 PM PDT by FromLori
Irresponsible Monetary Policy
Monetary policy will create a stable currency or cause money to lose value. Without sound, responsible money supply controls in place, an oversupply of dollars issued in paper or digital entries causes the same result—currency devaluation.
Elected representatives have the responsibility of making certain that dollar values remain constant, through oversight and monitoring of Federal Reserve monetary policy.
Dollars printed or issued only when there is “value” behind the currency assures dollar price stability, as measured against competitive foreign currencies and the costs of goods and services.
Responsible borrowing occurs only when a debt repayment plan has been structured and available cash flow is available to service the loan. A plan to liquidate assets to pay debt can serve as a back-up plan if cash flow (recession or depression for government; earnings reduction by businesses) decreases.
These fiscal and solvency rules are the same when applied to private entities or sovereign nations.
Why do government officials not insist on sound fiscal policies and make certain your currency is strong rather than creating money from debt? Why do government officials follow a perpetual tax-and-spend scheme designed to destroy wealth over time? Do they benefit from your loss of purchasing power by gaining wealth from newly created dollars without assets backing this money?
Huge Tax Increases and the Great “Inflation” Lie
People want their dollars’ value preserved, and a “hard currency” will prevent savings from eroding when retirement funds must provide the means for living expenses.
The same value, supply, demand, and stability rules apply to any means of exchange, whether that “currency” is buckskins, gold and silver coins, wheat, beans, ivory, or U.S. dollars. Flood the marketplace with an over-abundance of any commodity, and the increased supply and lack of scarcity drives down the value.
The devaluation of the dollar becomes the most expensive “tax” of all taxes. Reduced purchasing power of dollars earned and saved produces hidden consumption taxes on all dollars spent, thereby reducing wealth and middle class living standards.
Inflation is a falsehood—a lie created by those who want the public to believe the loss of their dollars’ value over time is a normal market phenomenon. Indeed, the public has been deceived into believing the great inflation lie—arguably the greatest lie ever told—and created by the privately owned Federal Reserve System.
While the current money system is less than a hundred years old, few people understand how money is created. Today, paper dollars are issued not as receipts for assets on a one-to-one ratio—as was the original method of early “bankers” known as goldsmiths who stored gold for customers—but through the whims and desires of relatives and agents of controlling families who own the central bank of the United States of America—a private corporation known as the Federal Reserve System.
Private Federal Reserve Controls Money
The Federal Reserve is a privately owned banking cartel (Griffin, 2002) and is no more a federal government entity than is Federal Express.
Purposely called the “Federal Reserve System” rather than a bank-related name, (Mullins, 1983) the Fed is a mysterious private corporation whose true controllers remain a secret.
Bankers and Business People Do Not Understand the Federal Reserve System
Most bankers cannot define the Federal Reserve (Hall, 2006) and do not understand the source of their money credits. (Grant Hall is the author of Privacy Crisis: Identity Theft Prevention Plan and Guide to Anonymous Living, and articles on business and privacy matters.)
Many business executives seemingly do not understand that monetary policy is dictated by a private banking group rather than the Federal Government.
Chairman and founder of Investor’s Business Daily, William J. O’Neil, wrote the following concerning “the Fed”:
“The bear market and the costly protracted recession that began in 1981, for example, were created solely because the Fed increased the discount rate in rapid succession on September 26, November 17, and December 5, 1980. Its fourth increase, on May 8, 1981, thrust the discount rate to an all-time high of 14%. That finished off the U.S. economy, our basic industries, and the stock market.”
“Such actions and their result starkly demonstrate how much our federal government, not Wall Street or business, may at times influence our economic future.”(O’Neil, p.72)
Does Mr. O’Neil—whose firm, William O’Neil + Company, owns New York Stock Exchange seats and advises institutional money managers—not know the Federal Reserve is a private corporation?
Public Ignorance of Federal Reserve
If many business leaders and bankers do not understand the Federal Reserve System, it goes without saying that most of the public remains ignorant about the true source of money. This deception is by design from the originators of the Fed, as it was a secret created to empower a few to gain control of the money (Mullins, 1983).
The Federal Reserve System was created secretly on Jekyll Island, Georgia, in 1910 by agents of international bankers (Mullins, 1983, publisher’s note 1.)
The Federal Reserve functions as the central bank of the United States of America and is under contract with the United States Treasury to set monetary policy as per the Federal Reserve Act of 1913 (Mullins, 1983, p. 29).
Elected Officials and the Fed
Why do elected officials bow and cow to the Fed? Is it not their job as your servants to provide oversight and assure your currency remains a stable store of value?
By certain polls, Congress recently had a low double digit approval rating of about 14 percent, and virtually no one—not even one in ten citizens—wanted the recent “bailout” to occur. But the now-departed Secretary of the Treasury, Henry Paulson, and the Federal Reserve have begun the biggest heist in the history of the world by literally printing money out of thin air, issued by the Federal Reserve.
Taxpayers will be raped for generations to come. The bailout scheme was purposely created without oversight or possibility of prosecution, in the event powers were abused by the Secretary of the Treasury, Henry Paulson, and his crew. And elected officials went along with it. They carried out this robbery of your future purchasing power against your will.
Fascism is the partnership of government and private corporations to create a ruler over the mass population known as a dictatorship. Is the current “partnership” between the Federal Reserve System and the U.S. Government a dictatorship in the purest form?
They began searching around for an alternative to subservience to the despised Russians and came up with "national" Communist or Socialist movements.
Mussolini came to power in 1922 in fact, mostly on a platform of inflicting Socialism on the public.
The only thing "anti-communist" about these guys was the fact they objected to Moscow's leadership.
Later on Hitler, et al, founded the National Socialist party in Germany ~ essentially a first stage Communist operation that began taking over control of primary industries by co-opting the leadership of the major firms.
The combination of "government power" and "private corporations" in a sort of alliance is simply a BYPRODUCT of National Socialism, not the definition of it.
Where’s my tinfoil hat?
If this were the case, they'd be stupid to transfer "approximately $34.9 billion of their estimated 2008 net income of $38.8 billion to the U.S. Treasury"
Are you saying they are a government entity?
http://nationalwriterssyndicate.com/content/view/1201/2/
>> Fascism is the partnership of government and private corporations to create a ruler over the mass population known as a dictatorship. Is the current “partnership” between the Federal Reserve System and the U.S. Government a dictatorship in the purest form?
That is not the definition of fascism. Per Merriam-Webster, fascism is defined as ...
1: a political philosophy, movement, or regime (as that of the Fascisti) that exalts nation and often race above the individual and that stands for a centralized autocratic government headed by a dictatorial leader, severe economic and social regimentation, and forcible suppression of opposition
2: a tendency toward or actual exercise of strong autocratic or dictatorial control
Fascism has nothing, whatsoever, to do with the relationships between corporations and the regime. The errant definition listed above is taken from a misquote (or fabricated quote) of Moussolini ... a (mis)quote that leftists have latched on to as a reason for their Marxist knee-jerk anti-corporate stupidity.
From Wikipedia page on Corporatism ...
“Some critics equate too much corporate power and influence with fascism. Often they cite a quotation that has been attributed to Mussolini, although it doesn’t appear in any of his texts: “Fascism should more properly be called corporatism because it is the merger of state and corporate power.” Several variations of the alleged quotation exist. However, no text written by Mussolini has yet been found with any variation of the alleged quotation.[51] Despite this, the alleged quotation has entered into modern discourse, and it appears on thousands of web pages,[52] and in books,[53] and even an alternative media advertisement in the Washington Post.[54] However, the alleged quotation contradicts almost everything else written by Mussolini on the subject of the relationship between corporations and the Fascist State.[51]”
SnakeDoc
I’m saying, if you were a private entity, why give 90% of your profit to the US Treasury?
What about the trillions we gave to them?
We (taxpayers) do not give money to the Federal Reserve. As my link shows, the Federal Reserve gives money to the Treasury. And Grayson is a clueless idiot. A Democratic congressman. But then, I repeat myself.
File Copy
No you are wrong we certainly do in the form of all the interest we pay on debt for example.
Paying interest on money you borrow cannot be considered giving money to the Federal Reserve.
The Federal Reserve could buy corporates instead of Treasury securities to influence the money supply. The Treasury wouldn't pay a single dollar less in interest and the Fed would still turn over billions of dollars annually to the Treasury.
Our money system is not what we have been led to believe. The creation of money has been “privatized,” or taken over by a private money cartel known as the Federal Reserve.
Except for coins, all of our money is now created as loans advanced by private banking institutions — including the private Federal Reserve. Banks create the principal but not the interest to service their loans. To find the interest, new loans must continually be taken out, expanding the money supply, inflating prices — and robbing you of the value of your money.
You know the bankers have gone too far when people have nothing to lose they lose it you cannot keep printing money like they are based on nothing. Be warned
We are going to have a collapse.
Obama was the one who made the bailout possible by personally calling and persuading members of the House who originally opposed the bill.
If Obama thought it was a good Idea ro hand over 750 billion + to private bankers with ZERO OVERSIGHT, how can anyone believe that he is working for anyone but the banks?
Obama promised that Congress work on the bill after it was passed, but that it should be voted on right away. But he has not made any attempts to find out where the first phase of the bailout went.
Source:
Obama Responds to Bailout Vote: ‘Get This Done’
http://washingtonindependent.com/8971/obama-responds-to-bailout-vote-%E2%80%9Cge...
Sen. Barack Obama swiftly reacted to the failed congressional vote on the bailout on Monday afternoon, casting the setback as a “bump in the road” that would not prevent ultimate passage of a “rescue package.”
“While things are never smooth in Congress,” Obama told voters as soon as he took the stage, “understand that it will get done.”
Then Obama boiled down his simple message for Congress: “Get this done!”
To this day, Paulson will not disclose who got the bailout and the remaining $410 billion rests with Obama’s treasurer, a former Fed chief. How convenient.
http://www.mortgageloan.com/obama-creating-a-better-tarp-2668
“The deployment of TARP’s remaining $410 billion, then, appears to be in the hands of Obama’s new Treasury Secretary, Timothy Geithner, who was president of the New York Fed.
The reason why it is fascist is because they own obama and and many of our congress people even dirty durbin admitted that.
http://www.businessinsider.com/senator-admits-that-bankers-own-capitol-hill-2009-5
They most certainly are Not giving us money for nothing that is absurd they LOAN us the money they create out of thin air and then charge interest on interest for us to pay it back. Have you heard the phrase not worth a continental? That is when we printed money out of nothing during the civil war and it became worthless just like the Federal Reserve is doing now. Look up Fractional Reserve Banking that is what we have now. They raise the debt and by doing that they are taxing you. We effectively have a hiddeen federal reserve inflation tax. They are creating a financial “black hole” we have a Quadrillion dollar problem as a result.
http://bluelori.blogspot.com/2009/04/all-hail-government-sachs.html
http://bluelori.blogspot.com/2009/04/stop-fascism-sign-petition.html
http://bluelori.blogspot.com/2009/05/foxs-willard-we-are-now-in-facist-state.html
A private cartel that gives 90% of their profits to the Treasury.
Except for coins, all of our money is now created as loans advanced by private banking institutions
Every time someone takes out a car loan or a home mortgage, the money supply is increased.
Banks create the principal but not the interest to service their loans. To find the interest, new loans must continually be taken out
LOL! I don't take out a loan to pay the interest on my mortgage. Try again?
If Obama thought it was a good Idea ro hand over 750 billion + to private bankers with ZERO OVERSIGHT
Hand over? The money bought preferred stock. Stock which pays a dividend. Some of the money has already been paid back.
But he has not made any attempts to find out where the first phase of the bailout went.
To bolster the balance sheets of the banks.
To this day, Paulson will not disclose who got the bailout
The banks who got the funds have been disclosed. It's not a secret.
They most certainly are Not giving us money for nothing that is absurd they LOAN us the money they create out of thin air and then charge interest on interest for us to pay it back.
They should loan it for free? Great idea. LOL!
They already give 90% of the profit back to the Treasury, you want 100%?
I said it before, they could buy corporates instead and then the treasury wouldn't have to borrow any of that "out of thin air" money and you could stop complaining about things you don't understand.
Have you heard the phrase not worth a continental?
Yes.
That is when we printed money out of nothing during the civil war
Try earlier.
Look up Fractional Reserve Banking that is what we have now.
Do we need to go back on the gold standard? So there'd be no fractional reserve lending?
How does 100% reserve banking work?
They raise the debt
They who?
They are creating a financial “black hole” we have a Quadrillion dollar problem as a result.
Quadrillion? Could you show your work?
Quadrillion? Could you show your work?
Absolutely but I already did and obviously you did not read it so here is just a sample of what you would have known if you did.
$1.14 quadrillion get a load of this!
http://www.bis.org/statistics/derstats.htm
No, that’s not a made up word. A quadrillion is one thousand trillion dollars. Not $4 trillion, but $1000 trillion – and change.
Here’s the breakdown, according to the International Bank of Settlements, which acts as banker for the world’s central banks:
http://www.bis.org/statistics/derstats.htm
1) Listed credit derivatives stood at USD 548 trillion;
2. The Over-The-Counter (OTC) derivatives stood in notional or face value at USD 596 trillion and included:
a. Interest Rate Derivatives at about USD 393 + Trillion;
b. Credit Default Swaps at about USD 58 + trillion
c. Foreign exchange derivatives at about USD 56 + trillion;
d. Commodity Derivatives at about USD 9 trillion;
e. Equity Linked Derivatives at about USD 8.5 trillion; and
f. Unallocated Derivatives at about USD 71+ trillion.
World derivative debt is $1.14 Quadrillion USD. For the US banks share of that see Table 1, page 22 of 33 at
http://www.occ.treas.gov/ftp/release/2008-152a.pdf
http://www.occ.treas.gov/ftp/release/2008-152a.pdf
http://www.youtube.com/watch?v=nH2-37rTA8U
Derivatives aren’t debt.
I did not say they were I said they are leading us into a “black hole” of debt interest we pay on interest.
Maybe this will help you understand
http://www.youtube.com/watch?v=nH2-37rTA8U
How does a derivative, which is not debt, lead us into that type of black hole?
How is a video on fractional reserve lending going to help me understand derivatives?
It is not the derivatives that are leading us into it is the creation of money out of nothing and the interest we pay on the debt and the accumulated interest that adds to the debt.
When you actually bother to read any of the things then let me know. They actually do it in other ways too like dumping their toxic waste on us.
In reality the fed is dead.
http://www.cnbc.com/id/31204170
Key quote from this interview (must-see!):
“If the Fed examiners were set upon the Fed’s own documents—unlabeled documents—to pass judgment on the Fed’s capacity to survive the difficulties it faces in credit, it would shut this institution down,” he said. “The Fed is undercapitalized in a way that Citicorp is undercapitalized.”
This guy is not a “nobody” either - he’s a major force in the bond market, editor of a very well-recognized publication since 1983. Ignore him at your peril.
http://bluelori.blogspot.com/2009/04/dumping-toxic-waste-on-you.html
So your line about derivatives was a distraction having nothing to do with the original discussion. Got it.
When you actually bother to read any of the things then let me know.
When you post anything that actually proves your claims, let me know.
“The Fed is undercapitalized in a way that Citicorp is undercapitalized.”
The Fed can create its own money.
Undercapitalized
Of, relating to, or being a firm that has insufficient long-term equity to support its assets. A rapidly growing company that finds itself financing its operations primarily with short-term loans may be undercapitalized.
Since the Fed doesn't need to borrow, it is silly to compare it to firms that borrow to acquire assets.
This guy is not a “nobody” either - he’s a major force in the bond market,
And in this case, calling the Fed undercapitalized, he sounds like....you! LOL!
Did you ever figure out we didn't give the Federal Reserve trillions?
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