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The Federal Reserve
by Stephen Lendman
www.zmag.org/, June 29,
2006
En ESPAÑOL aquí: https://www.fiapbt.net/reservafederal.html
Years ago I read William Greider's excellent book
published in 1987 on how the US Federal Reserve System works. It was detailed
and explicit and makes wonderful and informative reading, except for the solution
he suggests to a huge problem. His was far too timid. This article proposes a
much different one. Greider called his book Secrets of the Temple with a
sub-title: How the Federal Reserve Runs the Country. A better sub-title might
have been how the Fed (and other key central bankers) runs the world. This
article attempts to summarize what it does, how it does it, for whose benefit
and at whose expense. For those who don't know, prepare for some stunning
information and commentary.
Let's be clear at the outset. The US Federal
Reserve, Bank of England, Bank of Japan and the European Central Bank (for the
12 European countries that adopted the single euro currency in 1999) are
institutions with enormous power far beyond what most people everywhere can imagine.
These most dominant of all central banks, as well as most others, have a
powerful influence on the financial conditions in virtually all countries
including their own, of course, in an increasingly borderless financial world
where a significant economic event in one nation can affect most others for
better or worse.
One other powerful bank is also part of today's
financial world. It needs mentioning because of its importance, even though it
requires a separate article to explain how it works more fully. It's the
secretive, inviolable and accountable to no one Bank of International
Settlements (BIS) founded in 1930 and based in Basle, Switzerland. This bank
most people never heard of is the central banker to its member central banks -
a sort of banking "boss of bosses" equivalent to what apparently
exists in the shadowy world of Mafia dons. Like most other central banks,
including the Federal Reserve (explained below), it's privately owned by its
members.
It's believed by some academicians and others who've
studied the BIS that the ruling elite of financial capitalism established this
bank of banks to be the apex of power to exercise authority over a world
financial system owned and controlled by them. It's thought their plan was to
use this bank to dominate the political system of every country and control the
world economy in a feudalistic fashion. In a word, the thinking goes that these
super-elite want to rule the world by controlling its money, and they set up
this supranational all-powerful bank of banks to do it. As important as that
is, that discussion remains for another time as the intent of this article is
to focus solely on the US Federal Reserve.
The dominant central banks and BIS, together with
most others, wield their influence in cartel-like alliance with each other to
assure they all benefit more than they otherwise would without such a cozy
arrangement. With their immense power it's no play on words to say these
financial institutions do indeed rule the world. Because they're able to create
money, they fund the needs of their governments, their militaries and all
business activity that couldn't function without a ready supply of that most
needed of all commodities. It's money, not love, that makes the world go round,
and central bankers have the power to create or remove from circulation as much
or little of it as they choose and for whatever purpose they have in mind. That
kind of power can move mountains or destroy them.
No nation's central bank is more powerful today
than the US Federal Reserve, but it wasn't always that way, and it now has
competition for the top spot it hasn't known since WW II. The Fed, as it's
called, has existed since it was first established by an act of Congress in
1913. But the Bank of England has been around since Britannia ruled the waves
beginning in 1694 when King William III needed help funding the kind of
escapade that takes lots of ready cash - war. Back then it was with France, and
the king needed a friendly banker to print it up for him to help him fight it.
He also needed financial help to facilitate trade and manage the country's debt
that always mounts up when wars are fought. The Bank of England wasn't the
first central bank, but it was the modern world's first privately owned one in
a powerful country. It was called the Bank of England to keep the public from
knowing that it, like our Federal Reserve, was and still is privately owned and
not part of the government. It was also the model used in the formation of our
own central bank and most others.
The Brits may have had a 219 year head start on
the Fed, but central bankers are only as powerful as the countries they
represent and their economies. Today the former dominant Brits must settle for
a far lesser role as being just one of many junior partners to a US hegemon
that emerged post WW II as the world's dominant economic power. It still is
today, even though some credible experts believe this country may have seen and
past its peak and is now in decline. Some go further and claim our decline has
been accelerated by the disastrous policies of the Bush administration that
irrationally believes waging war on the world without end is the way to rule
it, promote endless economic growth and dominance, and thus preserve the
nation's preeminent position as the reigning economic champion.
It's easy to challenge that view and think that
champ has climbed into the ring a few times too many, has endless plans for
more return engagements, and is likely to meet the same fate many a former human
one did who didn't know when to quit and ended up with chronic brain damage
known as dementia. The lesson from history is always the same. The price for
reckless behavior is high, painful and inevitable. It's true for countries as
well as individuals, but too often neither one sees it until it's too late. The
biggest difference between the US today and other nations in the past that paid
dearly for not yielding when their day had passed is that we have an
all-powerful arsenal others never did. Should we decide to use it, there likely
wouldn't be much left behind for a successor. Not a pleasant thought, but a
very real one.
It All Began in 1910 On Jekll Island
It sounds like the title of a horror movie, but
the real life events that happened at this privately owned island off the coast
of Georgia in 1910 would have challenged even the Hollywood bad dream factory
to come up with. It was here that seven very rich and powerful men met in
secret for nine days and created the Federal Reserve System that came into
being three years later on December 23, 1913 by an act of Congress. Since that
time, the nation and world would never be the same, but only the rich and
powerful were the beneficiaries. That was the whole idea, and it worked as
planned.
The Federal Reserve Act that began it all must
surely rank as one of the most disastrous and outrageous pieces of legislation
to the public welfare ever to come out of any legislative body. It may have
also have been and still is illegal according to Article 1, Section 8 of the
Constitution which happens to be the inviolable law of the land. The article
states that Congress shall have the power to coin (create) money and regulate
the value thereof. In 1935, the US Supreme Court ruled the Congress cannot
constitutionally delegate its power to another group or body. The Congress thus
acted in violation of the Constitution it's sworn to uphold and in so doing
created the Federal Reserve System that, as will be explained below, is a
private for-profit corporation operating at the expense of the public welfare.
By its action, our lawmakers committed fraud against the people of the country
and so far have gotten away with it without the public even knowing about the
harm done.
The shameful result is that what should have
arrived stillborn is now the most dominant institution on earth, and all
because of what began on a privately owned island with a scary name. But had
the Congress acted responsibly, the act of Fed creation might never have
happened. The legislation establishing it was so harmful to the public
interest, it likely never would have passed if it hadn't been shepherded
through a carefully prepared Congressional Conference Committee meeting
scheduled for between 1:30 - 4:30 AM (when most members of Congress were asleep)
on December 22, 1913. The Act was then voted on the next day and passed
although many members of the body had left for the Christmas holidays and most
others who stayed behind hadn't had time to read it or know its contents. Sound
familiar? Still it passed (like a thief in the night) and was signed into law
by an unwitting or complicit Woodrow Wilson who later admitted he made a
terrible mistake saying "I unwittingly ruined my country." But it was
too late for postmortems, and the American people have paid dearly ever since.
It's about time the public understood that and began to demand an end to over
90 years of damage done.
It almost happened 43 years ago when one
president decided to act on behalf of the people who elected him. That man was
John Kennedy, who before his death planned to end the Federal Reserve System to
eliminate the national debt a central bank creates by printing money and
loaning it to the government. That debt has now risen to over
$8,400,000,000,000 ($8.4 trillion) which every taxpayer must pay for and has
done so in the amount of nearly $174,000,000,000 ($174 billion) in just the
first three months of 2006. This debt service is now an annualized amount
exceeding two-thirds of a trillion dollars. It's made the bankers rich (which
was the whole idea) and the public poorer because we're taxed to pay the tab.
It's no exaggeration to call this the greatest financial scam in world history
and one that gets greater every day.
The debt was less onerous 40 years ago, but
Kennedy understood its danger to the country and the burden it placed on the
public. Thus, on June 4, 1963, he issued presidential order EO 11110 giving the
president authority to issue currency. He then ordered the US Treasury to print
over $4 billion worth of "United States Notes" to replace Federal
Reserve Notes. He intended to replace them all when enough of the new currency
was in circulation so he could end the Federal Reserve System and the control
it gave the international bankers over the US government and the public. Just
months after the Kennedy plan went into effect, he was assassinated in Dallas
in what was surely a coup d'etat disguised to look otherwise and may well have
been carried out at least in part to save the Fed System and concentration of
power it created that was so profitable for the powerful bankers in the
country. Those benefitting from it had good reason to be involved in the plot
to save the special privilege they weren't willing to give up without a fight.
It's a plausible explanation that may explain who may have been behind the
assassination and for what reason. Whatever the truth is, the banking cartel
was only in distress a short time. Once Lyndon Johnson took office, he
rescinded Kennedy's presidential order and restored the cartel's former power.
It's kept it ever since and is now, of course, more powerful than ever. Even
presidents are unable to stop it and those who would try have a lesson from
history to give them pause.
The predecessors of the possible Kennedy coup
plotters were the men who met on Jekyll Island in 1910. They represented some
of the richest and most powerful men in the world - the Morgans, Rockefellers,
Rothschilds of Europe (who dominated all European banking by the mid-1800s and
became and still may be the wealthiest and most powerful family of all) and
others of great influence and power. Included was a US senator, a high ranking
Treasury official, the president of the largest bank in the country at the
time, a leading Wall Street figure and the man who would later become the first
chairman of the Federal Reserve System. It was quite an assemblage, and they
came to accomplish one thing. They wanted to change the ideology and course of
American business that up to then was based on marketplace competition and
replace it with monopoly. They also knew what Baron M.A. Rothschild understood
when he once said: "Give me control over a nation's currency and I care
not who makes its laws." They knew the wisdom of what's stated in Proverbs
22:7 as well: "The rich rule over the poor, and the borrower is servant to
the lender."
This was the dawning of the age of powerful
cartels when the seven financial titans meeting secretly in the island's
clubhouse decided no longer to compete with each other and wanted the power to
arrange it. They were already colluding informally but knew it would all work
better under a legally sanctioned cartel. They wanted a banking cartel and got
one that flourishes today below the public radar with the tool they wanted most
- the ability to control the nation's money supply that gave them almost
unlimited power. The cartel now works cooperatively with their governments and
all other powerful transnational corporations in a dominant global alliance
that allows them to control the world's markets, resources, cheap labor and our
lives.
The Federal Reserve System Is Not A Government Agency - It's A Privately
Owned Cartel of Powerful Banks Protected By Law
It's commonly but falsely believed the Federal
Reserve System is a function of government and subject to its control. False.
It's often referred to as a quasi-governmental, decentralized central bank, but
that's just cover to disguise what, in fact, it really is: a privately held and
operated cartel made to look like the government is in charge. The fact that
it's headquartered in Washington in the formidable and impressive-looking
Eccles building (named after a former Fed chairman) is just part of the clever
subterfuge. Here's how it works:
The Fed is composed of a Board of Governors in
Washington and 12 regional banks in major cities throughout the country
(including in my own city of Chicago where anyone once but no longer could walk
up to a teller's window and buy US Treasury securities). The system also
includes many and various member banks including all national banks that are
required to be part of the system. Other banks were also allowed to join and
many did. The Federal Reserve began operating in November, 1914, almost one
year after the Congressional act creating the system the previous year as
explained above. It was mandated by law to have the greatest power of any
institution in the country - the power to create and control the nation's money
supply.
Most people know little or nothing about money
and banking, likely never think about it, and have no idea how what the Fed and
bankers do affect their lives. Before writing this article, I had little more
than the modest knowledge I learned in a required course on the subject and
basic accounting as part of my MBA curriculum 46 years ago. Those courses left
out the most important parts of the story and never hinted at anything sinister
about how the banking system works in fact. But no one should ever imagine
banks were established or intended to be run for our benefit. They surely are
not, and anyone suggesting they are should read on. They're about as beneficial
to the public welfare as was the MX Peacekeeper ICBM (the clever language is
impressive) intended to carry nuclear warheads back in the mid-80s that had the
power to destroy all life on the planet and one day may do it in its old or
updated form.
The Federal Reserve Act of 1913 (the law of the
land) stipulates that the Federal Reserve Banks of each region are owned by the
member banks in it. These Fed banks are privately owned corporations that make
a great effort to hide the fact that they, in fact, own what the public largely
thinks is part of the public treasury and government. It's easy to think that
as Fed chairmen and seven of the twelve Governors are appointed by the
President and approved by the Senate. As such, the FRB is a sort of
quasi-government entity, but the fact is the System is a privately owned for
profit enterprise just like any other business. It has stockholders like other
public corporations that are paid 6% risk free interest every year on their
equity holdings. The public doesn't know this, and it likely wouldn't be good
PR if it found out. People might be even more upset if they learned some of the
owners of our Federal Reserve are powerful foreign investors in the UK, France,
Germany, The Netherlands and Italy. They're partners with giant US banks like
JP Morgan Chase and Citibank as well as powerful Wall Street firms like Goldman
Sachs in a new world order banking cartel that influences and affects business
activity everywhere and our lives.
The issue of private ownership of the Federal
Reserve Banks has been challenged several times in the federal courts to no
avail. Each time the courts upheld the current system under which each Federal
Reserve Bank is a separate corporation owned by commercial banks in its region.
One such case was Lewis v. United States that was decided by the 9th Circuit
Court of Appeals that ruled the Reserve Banks are independent, privately owned
and locally controlled corporations.
Our Founding Fathers Had Different Ideas Than the Powerful Men who Met on
Jekll Island
Throughout our history, there was disagreement
over who should control the power of the nation's money supply and the right to
issue it. The Founding Fathers understood that the British Parliament was
forced to levy unfair taxes on its American colonies and its own citizens
because the Bank of England had run up so much debt the government needed
revenue to reduce it. Benjamin Franklin, in fact, believed that was the
real cause of the American Revolution. Most of the Founders also understood the
danger that could result from bankers' accumulating too much wealth and power. James
Madison, the main drafter of our Constitution, called them "Money
Changers," referring to the Bible that said Jesus twice drove the Money
Changers from the Temple in Jerusalem 2,000 years ago. Madison said:
"History records that the Money Changers
have used every form of abuse, intrigue, deceit and violent means possible to
maintain their control over governments by controlling money and its
issuance."
Thomas Jefferson was just as strong in his condemnation when he
said:
"I sincerely believe that banking
institutions are more dangerous to our liberties than standing armies. Already
they have raised up a money aristocracy that has set the government at
defiance. The issuing power should be taken from the banks and restored to the
people to whom it properly belongs."
Jefferson and Madison understood the dangers of
commercial monopolies of all types and tried to assure they never would exist
in the new nation. They, in fact, wanted two additional amendments added to the
"Bill of Rights" in the Constitution but never got them. They
believed to protect the liberty of the people the nation should have
"freedom from monopolies in commerce" (what are now giant
corporations including the big international banks and Wall Street investment
firms) and "freedom from a permanent military," or standing armies.
Try to imagine what the country would be like today if Jefferson and Madison
had gotten their way - a country without giant predatory corporations
exploiting everyone for profit and without a rampaging military waging war on
the world, threatening to destroy it, and doing it so those corporate giants
could earn even greater profits.
They never did, of course, and the people have
paid dearly ever since including the great harm caused because the government
relinquished its right to control the nation's money supply. It gave it away
secretly with the public none the wiser, never knowing how greatly it's been
harmed. It's been even worse since the 1980s because the power of the Fed grew
under a friendly Republican president, and the corporate media led cheerleading
for it hid the effect. For them, no public demeaning of it, its giant member
banks or Wall Street allies is allowed.
Things were especially out of hand during the
tenure of Alan Greenspan - a Fed chairman no one should have found much reason
to cheer either before he headed the Fed when he was a presidential advisor or
during the time he did. It was only after his economic consulting firm failed
that he went into government service likely because he needed a new line of
work. There he managed to become a larger than life seer of central banking who
was elevated to near sainthood by the business pundits who thought under his
tenure the skies were only blue and the few clouds in sight always had silver
linings. Now Alan is retired to the greener pastures of lucrative book
contracts and speaking engagements, which shows when you do your job well for
the rich and powerful (at the expense of the rest of us) who gave it to you,
you'll be well rewarded in the end. It's likely the new Fed chairman has taken
note and will dutifully try to follow in the tradition that preceded him.
But try imagining a different sort of Fed
chairman, one who knew, believed in and practiced the words and wisdom of
another American president of some note - Abraham Lincoln. In 1886
Lincoln said the following: "The money powers prey upon the nation in
times of peace and conspire against it in times of adversity. It is more
despotic than a monarch, more insolent than autocracy and more selfish than a
bureaucracy. It denounces, as public enemies, all who question its methods or
throw light upon its crimes. I have two great enemies, the Southern Army in
front of me and the bankers in the rear. Of the two, the one at the rear is my
greatest foe."
Lincoln also appears to have said (although some
dispute it): "I see in the near future a crisis approaching that unnerves
me and causes me to tremble for the safety of my country... corporations have
been enthroned and an era of corruption in high places will follow, and the
money power of the country will endeavor to prolong its reign by working upon
the prejudices of the people until all wealth is aggregated in a few hands and
the Republic is destroyed." Imagine what Lincoln might say today.
Given Lincoln's sentiment about the bankers and
money power of the country, it would seem to beg the obvious question: did it
play a role in, or was it the reason for, his untimely death at the hands of John
Wilkes Booth? The international bankers clearly disliked Lincoln
after he managed to get the Congress to pass the Legal Tender Act in 1862 that
empowered the US Treasury to issue paper money called "greenbacks."
Lincoln needed this legislation after he declined to pay the bankers the
usurious 24 - 36% interest rates they demanded on the loans he needed to fund
his war with the South. With the new banking law, Lincoln was then able to print
up the millions of dollars he needed which was debt and interest free. Clearly
this was not what the greedy bankers wanted as they can only profit when they
get their pound of flesh from financial transactions they control. Right after
the war ended Lincoln was assassinated, and shortly thereafter the so-called
Greenback law was rescinded, a new national banking act was passed, and all
money became interesting-bearing again.
How the Federal Reserve System Works
The Federal Reserve System is the result of the
Congress and President having agreed to privatize the nation's money system and
relinquish the power that should have remained the government's exclusive
right. That act was so outrageous the Fed had to be deliberately designed to
look like a branch of the federal government to hide the fact that it's really
an all-powerful privately owned banking cartel whose member banks (including
all the national ones) share in the vast profits earned from having the most
important of all franchises governments alone should have - the right to print
money in any amount, control its supply and price, and benefit hugely by
loaning it out for a profit including to the government itself that must pay
interest on the money it should never have to if it simply printed its own. Think
of what happened as the government having legalized the right to counterfeit
the national currency for private gain. It's no exaggeration to claim this is
the greatest ever of all financial scams causing incomprehensible harm with the
public none the wiser. Here's how it works in simple terms:
The Fed was given the authority to conduct the
nation's monetary policy with the power to control the supply and price of
money. It has three ways to do it - through open market operations, the discount
rate it charges member banks, and the reserve requirement percentage of member
banks assets it requires them to hold and not loan out. The Board of Governors
is responsible for handling the discount rate and reserve requirements while
the Federal Open Market Committee (FOMC) is in charge of the open market
operations of buying or selling bonds explained further below. Using these
tools, the Fed is able to influence the supply and demand for money and thus
directly control the federal funds short-term rate that's always fixed unless
the Fed wishes to raise or lower it. Longer rates are controlled by the
powerful institutional traders in the bond market.
The FOMC and How It Works
The Federal Open Market Committee is really key
to the whole process of money creation or contraction. It consists of 12
members - seven members of the Board of Fed Governors, the president of the New
York Fed Bank (the most important one of all) and four of the remaining 11
Reserve Bank presidents who serve one year terms on a rotating basis. The FOMC
holds eight regularly scheduled meetings a year to assess economic conditions
and decide how loose or tight it wants monetary policy to be to further its
stated goal of sustainable economic growth and price stability.
The FOMC literally has the power to create money
out of nothing. It does it in a four step process:
Step 1 - The FOMC first approves the purchase of
US government bonds on the open market.
Step 2 - The New York Fed bank buys them from
sellers (financial markets always have an equal number of buyers and sellers).
Step 3 - The Fed pays for its purchases with
electronic credits to the sellers' banks, which, in turn, credit the sellers'
bank accounts. These credits are literally created out of nothing.
Step 4 - The banks receiving the credits can then
use them as reserves to enable them to loan out as much as 10 times their
amount (if their reserve requirement is 10%) through the magic (only banks
have) of fractional reserve banking and, of course, collect interest on all of
it. What a business, and it's all legal. Imagine how rich we might all be if we
as private individuals could do the same thing. Borrow a million from the Fed
and like magic it becomes 10 times as much, and we get to collect interest on
all but the 10% of it we must hold in reserve. This is the magic of fractional
reserve banking money creation and explains how powerful an economic stimulus
it is when the Fed wants to enhance economic growth.
When the Fed wishes to contract the economy by
reducing the money supply, it simply reverses the above process. Instead of
buying bonds, it sells them so that money moves out of the buyers' bank
accounts instead of into them. Bank loans must then be reduced by 10 times if
the reserve requirement is 10%.
How the Fed Harms the Public Interest
The Federal Reserve System exists only to serve
its owners and member banks and in doing so is hostile to the public interest.
That's because it's a banking cartel with the power to restrict competition for
greater profits gained at our expense. It goes from our pockets to theirs, and
the public loses in at least four ways:
One - Through the invisible tax of inflation that
results from the dilution of purchasing power caused by newly created money
entering the system reducing the value of dollars already there. The Greenspan
Fed was especially expansive, never was held to account for its excess and was
able to pass a serious problem it created on to a future Fed chairman and
society to deal with. The man we now lionize as a monetary magician began
sensibly. From 1982, before he arrived in 1987, until 1992, the money supply
increased on average by 8% a year. But from 1992 - 2002, the printing press
worked overtime in sync with the deregulation and growth of global markets
expanding the currency by more than 12% a year. It became even more extreme
post 9/11 and since 2002 grew at a 15% rate. It now has more than doubled in
less than a decade. It appears that the new Fed chairman has taken note and has
begun reducing the rate of money expansion as he continues raising the federal
funds rate to whatever level he has in mind.
Currency traders as well apparently have taken
note of the rate of money supply expansion overall. Except for a respite in
2005, it's quite likely the dollar weakness since 2002 is the result of the
excess amount of them created for the Bush administration's profligate spending
to fund its endless wars and reckless tax cuts for the rich. The problem is
further compounded as from 1964 to the present debt service has grown from 9%
to 16.5% of the federal budget and rising; the current account deficit has gone
from a 1% surplus to an almost 7% deficit; and federal indebtedness has grown
by 40% just since 2001 and financed in large part by "the kindness of
(foreign) strangers" that may be growing restive. Furthermore, since
March, 2006, the Fed stopped publishing the M-3 aggregate of the total amount
of dollars in circulation. With that transparency gone, big buyers of US
Treasuries now have to calculate the value of the dollar based on speculation
and uncertainty rather than hard data - not a way to inspire trust in the
financial markets that function best in an atmosphere of openness and clarity.
Two - The public also loses because the banking
cartel is able to practice usury - from it's power over a flexible currency to
artificially move rates up or down to any level it chooses which many small
lenders in a truly free and open market can't do. In addition, the cartel's
market dominance forces most borrowers (especially smaller ones less able to
issue their own debt instruments) to come to them for loans which it's then
able to make using what should be the peoples' money available to them at the
lowest possible cost from many highly government regulated small lenders
competing for customers.
Three - Through the taxes, we, the public, must
pay to cover the interest on the huge national debt (now over $8.4 trillion)
accumulated from the money the Fed printed and loaned to the government. As
mentioned earlier, that now totals an annualized amount exceeding two-thirds of
a trillion dollars and increasing daily. It's made the bankers rich, ordinary
people poorer, and the public none the wiser it's been fleeced big time.
Four - Compounding the above abuse, the cartel is
able to get the public to bail out the system with more of its tax dollars. It
happens whenever any of the too-big-to-fail banks need financial help to
survive. The same is true for big corporations like Chrysler or Lockheed, large
investment firms or hedge funds like Long-Term Capital Management or even
countries like Mexico. It's also true when a single bank goes out of business
and depositors must be compensated or more seriously in the wake of a systemic
financial meltdown like the one that wiped out many savings and loan banks in
the 1980s. Whether it's a single bank or many dozens at a time, public tax
dollars are used to save the system or just pick up the tab to repay depositors
insured against losses through government insurance protection up to a
stipulated amount per account.
How Would Adam Smith Have Reacted to the Federal Reserve System
This concentration of banking cartel wealth and
power is the opposite of what Adam Smith, the ideological godfather of free
market capitalism, advocated in his writings including his seminal work The
Wealth of Nations. Smith wrote about an "invisible hand" that he said
worked best in a free market with many small businesses competing locally
against each other. He strongly opposed the concentrated mercantilism of his day
(what there was of it) which now would be the equivalent of today's giant
transnational corporations and the banking cartel with the power to restrict
competition, maintain higher prices than otherwise possible and earn greater
profits as a result at the public's expense.
The kind of banking cartel that exists today is
precisely what Smith would have condemned. But having a central bank is not in
itself a bad thing provided the bank is government owned, controlled and
operated for the public welfare. There's only a problem when through subterfuge
the bank is set up to appear government owned and run but is, in fact, for
private profit the way ours is and most others as well. And in the US, to make
the arrangement work, a mostly publicly appointed governing authority runs the
System acting as a shill for its private for-profit banking cartel members that
wanted it in the first place and got a corrupted Congress to give it to them.
To work, the cartel needs the cover it gets from its partnership with
government, but it's through that arrangement that it harms the public interest
for its own private gain.
And that goes to the heart of the problem: that
the Congress elected to serve the people instead betrayed them by creating an
all-powerful banking cartel and gave it the authority to practice fractional
reserve banking with the power to get free money by creating it out of nothing.
It then allowed its members a near-monopoly right to set the rates of interest
they wish to charge borrowers. The whole process amounts to a legally
sanctioned heist by the powerful banks working in league with government for
its own gain. It's also part of a more extensive government arranged process to
transfer wealth from the people to the pockets of large corporations and the
rich and doing it while those being harmed are unaware it's even happening.
Another Way the Federal Reserve System Harms the Public
The Fed harms the public welfare in one other
important way, and again most people are none the wiser about it. Supposedly
the Federal Reserve System was established to stabilize the economy, smooth out
the business cycle, maintain a healthy rate of sustainable growth while holding
prices steady and benefitting everyone. So how well has it done its job? Since
its creation in 1913, and with them in charge, we had the crashes of 1921 and
the most important and remembered one in 1929. That was followed by The Great
Depression that lasted until the onset of WW II that noted conservative
economist Milton Friedman explained was caused and exacerbated because the
Federal Reserve oddly decided to reduce the money supply at a time of economic
contraction instead of increasing it. We then had recessions in 1953, 1957,
1969, 1975, 1981, 1990 and 2001. We also had inflation beginning in the 1960s
which became quite severe through much of the 1970s and early 1980s. And we had
a major banking crisis in the 1980s at which time more banks and savings and
loan associations failed than ever before in our history. It happened in the
wake of financial market deregulation when banks were allowed to pursue their
own interests without government oversight to check their willingness to assume
excess risk or stop them from trying to get away with deliberate fraud.
Along with the economic stability the Fed never
achieved, we've also had soaring consumer debt; record high federal budget and
trade deficits; a high level of personal bankruptcies and rising mortgage loan
delinquencies; interest on a mounting national debt that's a large and rising
percentage of the federal budget; the loss of our manufacturing base and it's
high-paying jobs with good benefits because they're being exported to low wage
countries; an economy in which services now account for nearly 80% of all
business that provide mostly lower paying, less skilled jobs with few or no
benefits; and a widening income and wealth gap that continues to harm lower and
middle income earners to benefit the rich and well-off privileged few and a
government that encourages it.
Sum it all up and the conclusion is clear. The
one thing the Fed failed to accomplish above all else was what it was
established to do in the first place. But it's much worse than that if we
understand a cartel's real motives. It's not to serve the public interest. It's
to abuse it because that's how it benefits most. It's able to do it with its
legally sanctioned concentrated power and a friendly government in league with
it as partners or facilitators. It's from that cozy hidden from view
arrangement that it's able to get away with the grandest of grand thefts.
A Needed Solution to A Huge Problem
From the information presented above, it's clear
that the Federal Reserve System was established through stealth and deceit by a
handful of corrupted politicians in service to their powerful banking and Wall Street
allies. They did it to defraud the public and without them being any the wiser
about what, in fact, had been done or how harmful it was to be to their welfare
and interests. Those in the Congress and President Wilson (a man trained in the
law, one-time practicing attorney, former esteemed academic and president of
Princeton University) either knew or should have known that the act he and they
approved establishing the Fed was in direct violation of the Constitution they
were sworn to uphold. They didn't, they broke the law, and the public paid
dearly for their crime ever since to this day.
So what recourse is left, and can people be
mobilized to pursue it. There's only one sensible and just solution to undo the
damage done to so many for so long - abolish the Federal Reserve System and
restore the power it now has to the federal government working for the public
welfare. Take it back from the powerful banking cartel working against it and
never allow it to be in its hands again. That alone is the only way. The great
German poet and playwright Bertolt Brecht would have agreed and once said it
was "easier to rob by setting up a bank than by holding up (one)."
Freeing us from the these powerful "Money
Changers" would have enormous benefits for everyone. It would establish a
prudent policy of money creation that would minimize our most unfair tax -
inflation which is caused by private for-profit bankers manipulating the
nation's money supply to enhance their profits. It would stabilize the economy
and smooth out the extremes in the business cycle exacerbated by the cartel
working for its benefit and against ours. It would lower the cost of money for
borrowers because it would end the monopoly power the cartel now has to set the
rates it chooses by opening the market to more competition. It would reduce the
growing and oppressive national debt freed eventually from the extra money
supply growth needed to pay it off. It would lower the public's tax burden as
less revenue would be needed for debt service. It would be a momentous step
toward reducing and hopefully one day eliminating the overwhelming power of all
predatory corporate giants preying on us so they can grow and prosper. It might
even discourage wars which are only fought for wealth and power - never for
glory or to make the world safe for democracy or other false motives. Without a
powerful corporate banking cartel and other industry giants that feed on the
human misery they create, there would be less of a reason to pursue any. Try to
imagine that kind of world and a government working for the public welfare
instead of harming it as it now must do in service to capital. That world is
possible, and responsible people need to work for it as the one we now have has
failed and must be changed before it's too late.
A View of the World Created by the Interests of Capital and Our Government
That Supports It
It's the ugly, corrupted world of neoliberal
"free market" capitalism controlled by giant corporations; that benefits
the privileged few alone causing great human misery and despair; a despotic
world that can't endure nor must we allow it to much longer; one with endless
wars for power and profit; where people are commodities to be used as needed
and discarded like trash when they're not; with no concern for preserving an
ecology able to sustain us and won't much longer because we're destroying it
and ourselves for profit; where essential human needs don't matter under an
economic model only valuing private gain; where democracy is incompatible with
predatory capitalism; one no one should want to live in or ever have to; one we
must change or perish. In the language of capital, that's the bottom line. Only
a mass movement of committed people can change that world. It must or we all
will.
Unless we can move from our failed economic model
to a better alternative, it will end on its own one day by one means or other.
But it may be a denouement no one would wish for - it's own self-destruction
taking all else with it either by nuclear holocaust or an environment so
inhospitable it won't support our ability to live in it. Our only chance is to
work for change while there's still time.
A Vision of A Different Kind of World
History proves a better world is possible when
committed people work hard enough for it. It's how slavery was ended; workers
won the right to organize and bargain collectively; women gained equal suffrage
to men, control of their own bodies, and more rights and status in the work
force; blacks and other minorities won important civil rights; and politicians
once enacted important social legislation if only out of fear of what might
happen if they didn't.
Thomas Jefferson explained the "The price of
liberty is eternal vigilance." It's also the price to keep our hard won
social gains. For the past generation those gains have eroded while we weren't
paying attention and only mass people action can regain them. The goal should
be for a world of caring and sharing; where peoples' lives improve because we
all work together for it; one at peace and not with endless wars to benefit the
rich and powerful at our expense; where all essential human needs are met
because governments work for the common good to assure it; with real
participatory democracy where the public and elected officials work together to
keep it strong and vibrant; with no oppressive corporate giants or banking
cartels because the law won't allow any; where ecological nurturing and
preservation are central; with clean air, water and soil and food that's fit
and safe to eat; a much simpler world, more locally based than today's where
notions like globalization aren't even in the vocabulary; one based on social
equity and justice for all with government, law enforcement and the courts
working to assure it stays that way; one we all want to live in and hope some
day we can; one we want to pass on to future generations; one we can't afford
not to have because the alternative may be no world at all.
We may now be at a key watershed moment where our
fate hangs in the balance. We can either work together for a better,
sustainable world or likely become the first species in it ever to destroy
itself. If it happens, we'll likely take most others with us and not leave much
behind for the few hearty ones that remain. We no longer have the luxury of
debate for the kind of world we need to survive. The giant banks and
corporations won't give it to us nor will a hostile government allied with
them. It's up to us to go for it or likely perish if we fail. A good beginning
would be by driving the Federal Reserve "money changers" out of our
temple and the corporate giants with them. A better world is possible if we
remember and live by political theorist Antonio Gramsci's inspirational words
about "the optimism of the will." With it, organized people can find a way to beat organized money.
Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net Also visit his blog site at sjlendman.blogspot.com
@ The 3 Great ROTHSCHILD SCAMS
that were the foundation to create the FALSE Israel state; The BALFOUR
DECLARATION, the LofN and the UN: https://www.fiapbt.net/declaration.html
@ Las 3 Grandes ESTAFAS
de los ROTHSCHILD que fueron la base para crear el FALSO
estado de Israel; La DECLARACIÓN de BALFOUR, la SDN y la ONU: https://www.fiapbt.net/declaracion.html
`IS NOT A WAR, IT IS A GENOCIDE!!!
❤ Wishes of LOVE and PEACE for ISRAEL and
PALESTINE
@ ISRAEL y
PALESTINA en ESPAÑOL AQUÍ: https://www.fiapbt.net/amorypaz.htm
RECOMMENDATION; To acquire the
details of the information attached, and so you can draw your own conclusions
with greater knowledge and judgment on this matter, we recommend reading it
completely in the order of the dates indicated;
https://www.fiapbt.net/loveandpeace.html
❤ Madrid, 12 january, 2024. IT'S NOT A WAR, IT'S A GENOCIDE!!! ´STOP Israel's GENOCIDE against PALESTINE Right Now!!! SAVE the
CHILDREN!!!
After reading and acquiring the Knowledge attached to the Web site to avoid Censorship of the report at the bottom, titled; “DIFFERENCE BETWEEN TRUE AND FALSE JEWS. The ROTHSCHILD family”, some will already be able to understand many issues, which, before knowing the information mentioned, they could not understand in any way. That is the purpose and intention of this report, to spread from humility, good intention and love, the hidden Knowledge that exists behind the Middle East conflict, in this way, doing our bit to find an adequate and quick solution. for all parties involved, especially to find an adequate and quick solution with regard to the Safety and Well-being of the most vulnerable, the CHILDREN. In order to find peace in the Middle East sooner rather than later, it is of utmost importance to be aware of the Knowledge attached in this report. Knowledge, good intention (will) and love is Power, it is the weapon most feared by the evil ones and the G-E-N-O-C-I-D-A-L, more powerful even than 100 atomic bombs exploding at the same time, not even the most powerful army in the world would have a minimal chance of victory against that weapon. (m.p.)
“DIFFERENCE BETWEEN TRUE AND FALSE JEWS. The ROTHSCHILD family”: https://www.fiapbt.net/true&fakejews.html
The pedophiles Jeffrey Epstein and his girlfriend Ghislaine Maxwell, worked together for Israel's MOSAD, compromising the various presidents in office in the USA and the senior leaders of the government to then blackmail them and if not, Why do you think that the USA is always in the front row as obedient puppet doing everything the immoral G-E-N-O-C-I-D-A-L of Israel ask of him, sending them help at every moment in terms of weapons, money, soldiers, protection, etc.???
Well, because the presidents of the USA are PEDOPHILES, they
have fallen into Israel's trap and have abused minors,
MOSAD has all the evidence
of the abuse of minors, videos, photos,
etc., the highest authorities
of the USA are BLACKMAILED, if they
do not obey Israel by helping it
In every possible way, they would
bring it to light.
Friends
Citizens of the USA, hold your politicians accountable. Manifestate together against the parasites that represent you, they are bleeding
you economically to satisfy the G-E-N-O-C-I-D-A-L and to satisfy
their immoral and sick sexual appetites in the
abuse of children... SHAME!!!
* Some issues
related to the FALSE
JEWS Bilderberg, which ´AFFECT US ALL!!!
@ The WORLDWIDE SCAM of the FEDERAL RESERVE:
https://www.fiapbt.net/fed.html
@ The PUBLIC DEBT
SCAM: https://www.fiapbt.net/deudapublica.html (In spanish write)
“I don't want Lies to defend
a Just Cause. If a supposed social Just Cause needs lies to sustain
itself, it will not be such
a good Just Cause. There is no Just
Cause greater than Truth itself.” (m.p.)
Please do
your own research, contrasting as much as possible that information, which you
wish to inform yourself about, since the traditional media is at the command of
the Financial Power, the Terrorists False Jews Zionist Banker (Khazars) Ashkenazis
BILDERBERG, they are
those who pull the strings of their puppets; The elite
of the West and the elite of the East, and ´THEY LIE TO US MORE THAN THEY SPEAK!!!
Dear reader
and friend, after reading and understanding the following, you will be able to
perfectly understand the reason why NO ONE is going to do absolutely anything
to stop the total, absolute and indiscriminate EXTERMINATION of
Palestine, the GENOCIDE against the
civilian population of Palestine (Gaza and the West Bank) and very especially,
a GENOCIDE against its
child population, the CHILDREN, because it is the future of Palestine and they want
to ELIMINATE it. This GENOCIDE against
CHILDREN, HAS NO PRECEDENTS IN THE ENTIRE HISTORY of HUMANITY. This Zionist aberration
led by Netanyahu in nowadays, cannot even be compared to what
happened 2023 years ago with the CHILDREN by order of the King Herod, it cannot
even come close to what is happening right now in that same place at the end of
the year 2023 in Gaza and the West Bank. Although some presidents and high
officials of various countries make timid statements against the GENOCIDE, the majority do so only to gain the sympathies of the millions
of indignant people with
CONSCIENCE who want to
end this GENOCIDE as soon as possible and thus, in the process,
win voters to secure their respective positions in the next general elections, and
those timid declarations against the GENOCIDE, are made
for nothing more than that and I refer to the facts, since the blood of
CHILDREN continues to flow in rivers through the streets of Palestine and every
As each day passes, the flow increases.
For this
and many other social reasons on a global level, those of us who consider
ourselves good citizens, whatever country we are from, cannot wait for someone
to save the CHILDREN of Palestine, we cannot wait for someone to stop the GENOCIDE against Palestine, no, I fear, that if the citizens themselves do
not take action on the matter, to put pressure on our respective governments in
various ways, Palestine in a couple of months will have gone down in history as
another country that existed, but front the helpless gaze the eyes of the whole
world and mseeing it in live, it ended up disappearing, due to the selfishness
and evil of those who
manage Financial Power in the
world, the Terrorists
False Jews Zionist Banker (Khazars) Ashkenazis BILDERBERG, Netanyahu included,
of course.
TERRORIST is the one who sows and generates TERROR among citizens, those are the ZIONIST False Jews deceivers. All, absolutely all social problems in the world, some
of which, the most recent, are shown in the following headlines, are made up of
the same root, have the same common denominator, the same pattern when it comes
to developing in global society by its promoters, the Terrorists False Jews ZIONIST Banker (Khazars) Ashkenazis
BILDERBERG, are those
the ones that subtly and from the shadows, they try to get TO
GAIN CONTROL OF ALL COUNTRIES AND THEIR CITIZENS OF THE PLANET before the year 2030, not only Palestine, no. The ZIONIST False Jews deceivers are the cancer of Mother Earth, they pull the strings of the two existing
elites in the world, the elite of the West and the elite of the East. Both elites, despite what many citizens believe, are not
enemies, no, a clear and recent example of this, we see it in what happened recently
with the Coronavirus and the Vaccines in the arm starting in 2020, the two
elites were fine combined to develop their Chinese tale in all the world, the
enormous network of DEPOPULATION and FINANCIAL as both elites obey their masters of Financial Power, the Terrorists False Jews Zionist Banker (Khazars) Ashkenazis
BILDERBERG. The two elites, in reality, are partners and collaborators to develop to the
millimeter DEPOPULATION and many other aspects within the NEW WORLD ORDER through the
2030
AGENDA, they are the tools in
total OBEDIENCE to the Terrorists
False Jews Zionist Banker (Khazars) Ashkenazis BILDERBERG, to develop its sinister 2030 AGENDA as best as
possible, as, for example, can be seen within the link of the ´WAR in UKRAINE??? attached and in other links after the
following paragraph.
Many
citizens find themselves Deceived, Manipulated, without Criterion, without
Willpower, without Common Sense, Asleep or Stunned, because of the traditional media
(Media of Manipulation and Confusion and as several examples can be seen within
the link entitled: FAKE News???), Internet
social networks, Telephony, etc., since all these media are the tools of
Control owned by the Terrorists
False Jews Zionist Banker (Khazars) Ashkenazis BILDERBERG, their partners and their collaborators. To
solve this issue, which, INVOLVE us and CONCERNS all of us citizens of the
world, can only be solved by the citizens themselves, in this way we can begin
to build a New Social System, there is no other way;
@ ALTERNATIVE to the current Corrupt and Rotten Social
System of the Terrorists False Jews Zionist Banker
(Khazars) Ashkenazis
BILDERBERG: https://www.fiapbt.net/alternativa.html (In spanish write) “UNITED WE STAND, DIVIDED
WE FALL” FOR FREEDOM PALESTINE, ´WE ARE ALL ONE!!!
And the International Community is neither a Community nor
anything at all, in reality it is INTERNATIONAL SHAME,
they are Netanyahu's PUPPETS, His GENOCIDE ACCOMPLICES!!!
Which one are you? https://www.facebook.com/photo/?fbid=317460297589519&set=a.155145083821042
@ FAKE News??? https://www.fiapbt.net/fake.html
@ WAR IN UKRAINE??? https://www.fiapbt.net/ukraine.html
@ ISRAEL and
PALESTINE http://www.fiapbt.net/loveandpeace.html
@ Video INTRODUCTION of what happened globally: https://thebigresetmovie.com/area-video
@ BREAKING NEWS!!! New variant of HIV or AIDS coming
in the third Covid 19 vaccine:
https://www.fiapbt.net/covidhiv.html
@ DOCTORS and HEALTH PEOPLE are
collaborators and accomplices of the global GENOCIDE: https://www.fiapbt.net/medicalpeople.html
@ THE PLANDEMIC WAS PLANNED FOR MANY YEARS AGO:
https://www.facebook.com/FIAPBT/posts/10160213702266133 In
Web site: https://www.fiapbt.net/nwo.html
@ And
after the PLANDEMIC? https://www.fiapbt.net/andnow.html
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