Category Archives: National Debt

Federal Reserve Education: The Fed follows no rule of law. Stop it!

federal reserve education

Why should the Fed have to follow rule of law?  

The dollar is on track for a severe impact.  The world’s confidence in the Federal Reserve’s ability to make good on its obligations is shrinking. Why? It’s because the world is coming to recognize that Fed is actually insolvent.  “Insolvent” means that it no longer has sufficient income to repay even the interest on its obligations, now totaling over 17 trillion dollars.

It’s really not complex at all!  Americans are smarter than the Fed estimates.

Information about the Federal Reserve’s management of our currency and economy is presented to the public in mystical and magical ways, but the smoke screen cannot last forever. The public is told that a central bank cannot afford to be restrained by principle, and that the  manipulation of the economy is a complex and necessary operation which none but the financial elite are capable of understanding.  But it’s actually simple.

Government finances work exactly like individual finances.

We all know what happens to individuals when they spend more than their income can bear. They become insolvent. When an individual’s credit limit is raised beyond levels that should be reasonably risked, a point of no return can be reached.  When income becomes insufficient to pay obligations, something has to give. The individual must either find a way to settle up, or be excused from the whole mess by going bankrupt. Of course bankruptcy is not really fair to creditors, but in the big picture the effects of a few cases of bankruptcy aren’t big enough to make a dent in the banking or small business economy.

Why should central banks behave differently from individuals?

They should NOT! What makes the financial rules that apply to a central bank any different from the financial rules that apply to an individual?  Nothing does! A properly managed central bank would operate under principled guidelines for self regulation.  After all, individuals are obliged to do so in order to avoid personal bankruptcy.

But listen to what former Fed chairman Alan Greenspan had to say about that in a 2008 interview:  When asked if Treasury Bonds are still a safe investment, he says “This is not an issue of credit rating.  The United States can always pay any debt it has because …we can always print money.”  Listen to the video here (and watch for the camera panning to incredulous look on the face of one of the participants in this Meet the Press discussion!).

The Federal Reserve puts itself above financial regulation and law.  No system is in place to check their actions.  The only system of credit rating the Fed has to deal with is a foggy one – namely, the willingness of investors to buy T-bills and bonds.  Until recently the Fed enjoyed an artificially high credit rating which enabled it to continue growing its obligations through the worldwide sale of Treasury bonds. This has enabled the injection of currency from other markets into the US system.  But investors are no longer as trusting as they were seven years ago.  Decreasing confidence has translated into a lower Federal Reserve Bank credit rating.

This 2010 article sheds some light on how this vaguely defined credit rating is measured and what that means to the US economy, but in a nutshell it means that it’s becoming harder for the Fed to inject currency into the US system by borrowing it.

Putting this into context,

even though the Fed is in a condition of insolvency, its ability to sell more bonds and T-bills is restricted only by market conditions.  It’s insolvent, yet nothing prevents it from simply borrowing as much money as it can get its hands on to pay its obligations.

An individual in a state of insolvency gets his credit cut off, no questions asked.  An insolvent individual cannot further compound his own financial problems by simply borrowing more to pay his debts.

The Fed is in a condition of insolvency, so when it needs more cash it fires up the money printing presses.  In theory there is some link between the amount of cash that’s printed and the amount of new currency that’s injected into the system through bond sales.  But there are no hard and fast rules.  The Fed can do whatever it wishes.

An individual in a state of insolvency who has to make a mortgage payment is in trouble.  He can’t go to the garage and fire up his money printing press to pay his debts.  If he does, he might find himself under arrest.  The Fed, however, exercises this counterfeiting option freely.  The only real difference between the Fed and a criminal counterfeiter is that the Fed’s counterfeiting activity is sanctioned by the government.  In both cases, the currency is backed by nothing.

It’s really not hard to understand

Smokescreens of excuses painting the financial mismanagement of our currency system as necessary to ensure monetary stability are pure politics.  It’s never too late for the Fed to change bad habits, but with interest obligations too far out of control, a solution is no longer going to result from spending cutbacks alone.

Because the concept of bankruptcy is a pill larger than any central bank is willing to swallow, the United States WILL make good on its obligations, period.  Unfortunately, after the dollar takes its last breath, payment of US debt is most likely going to end up coming from the creation of even more fiat currency coming from the world’s super central bank known as the International Monetary Fund (IMF).

At this time the Fed’s biggest problem is saving face. Stopping its enormous borrowing and spending methods would at the very least be unpopular.  However, informed Americans understand that a central bank that directs the economy of perhaps the most influential nation in the world must operate under a principled and responsible rule of law.

It’s time to end the Fed’s operation as we know it.

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The Great Depression was Deliberately Created by the Federal Reserve As Well As Every Depression Since

1913 us federal reserve one hundred years of bankrupting your nation

The Great Depression was Deliberately Created by the Federal Reserve and so was Every Depression Since

Apparently congress was aware of the scheme of the international bankers and recognized the danger that the republic was in. Congressman Lindberg said in a Congressional Record dated, December 22, 1913, vol. 51, “This new law [the Federal Reserve Act] will create inflation whenever the trusts want inflation. It may not do so immediately, but … 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 them 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.”

“That day of reckoning, of course, came in 1929,” said Perloff, “and the Federal Reserve has since created an endless series of booms and busts by the strategic tightening and relaxation of money and credit.” Speaking about the historical disinformation regarding the crash, Perloff said, “Establishment historians present the ’29 stock market crash as they do most events: an accident, evolved from erroneous policies, not from deliberate planning. We have all heard how foolish speculation bid stock prices high, but that the bubble finally burst, plunging brokers out of windows and America into the Depression.”

“Having built the Federal Reserve as a tool to consolidate and control wealth, the international bankers were now ready to make a major killing,” stated Allen. Between 1923 and 1929,” he described, “the Federal Reserve expanded (inflated) the money supply by sixty-two percent. Much of this new money was used to bid the stock market up to dizzying heights. At the same time that enormous amounts of credit money were being made available,” continued Allen, “the mass media began to ballyhoo tales of instant riches to be made in the stock market. According to Ferdinand Lundberg: ‘For profits to be made on these funds the public had to be induced to speculate, and it was so induced by misleading newspaper accounts, many of them bought and paid for by the brokers that operated the pools.'”

Perloff concurred, writing, “The Federal Reserve prompted the speculation by expanding the money supply a whopping sixty-two percent between 1923 and 1929. When the central bank became law in 1913, Congressman Charles Lindbergh had warned:

‘From now on, depressions will be scientifically created.’

Like two con men working a mark, the Fed made credit easy while Establishment newspapers hyped what riches could be made in the stock market.” “Curtis Dall,” he continued, “himself a syndicate manager for Lehman Brothers was on the floor of the New York Stock Exchange on the day of the Crash.” Perloff quotes Dall as declaring, “Actually, it was the calculated ‘shearing’ of the public by the World-Money powers triggered by the planned sudden shortage of call money in the New York money market.”

The “shearing,” wrote Allen, caused a “despair [which] produced a willingness to accept a major expansion of government controls over the economy. … In 1929, America was a long way from total government.” He advised, “The next depression will be used as the excuse for complete socialist-fascist controls at home and the creation of a World Superstate internationally.”

Congressman Louis McFadden, Chairman of the House Banking Committee, declared of the Depression, “It was not accidental. It was a carefully contrived occurrence.” He warned, “The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all.” The Great Depression is another example of the Problem-Reaction-Solutionformula.

“Plummeting stock prices ruined small investors, but not the top “insiders” on Wall Street,” wrote Perloff. “Paul Warburg had issued a tip in March of 1929 that the crash was coming. Before it did, John D. Rockefeller, Bernard Baruch, Joseph P. Kennedy, and other money barons got out of the market. … Early withdrawal from the market not only preserved the fortunes of these men,” said Perloff, “it also enabled them to return later and buy up whole companies for a song.”

“History shows that the Wall Street biggies came through very well indeed,” wrote Alan B. Jones in his book, How the World Really Works. Quoting from G. Edward Griffin’s book, The Creature from Jekyll Island, he added, “Virtually all of the inner club was rescued. There is no record of any member of the interlocking directorate between the Federal Reserve, the major New York banks, and their prime customers having been caught by surprise.” Pictured below is a bread line in New York City during the Great Depression. Apparently the Wall Street insiders didn’t require this service.(*)

Bread Line The great depression was deliberately created and every depression since

Bread Line During The Great Depression

Jones quotes Herbert Hoover’s description of the Secretary of the Treasury, Andrew Mellon’s views, “Mr. Mellon had only one formula: ‘Liquidate labor, liquidate stocks, liquidate the farmers, [and] liquidate real estate.'” [Mellon] said, “It will purge the rottenness out of the system. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.”

“For those who knew the score,” stated Allen, “a comment by Paul Warburg had provided the warning to sell. That signal came on March 9, 1929, when the Financial Chronicle quoted Warburg as giving this sound advice: ‘If orgies of unrestricted speculation are permitted to spread too far … the ultimate collapse is certain … to bring about a general depression involving the whole country.'” “Sharpies [insiders] were later able to buy back these stocks at a ninety percent discount from their former highs,” he declared.

“FDR is probably best remembered for the New Deal,” stated Perloff. “Of courser, since a large portion of the work force was unemployed, there was not enough tax revenue to pay for these programs. So the government turned to its other source–borrowing. In effect, the international bankers, having created the Depression, now loaned America the cash to recover from it.” He added, “Naturally, the interest on these loans would be borne on the backs of taxpayers for years to come.”

The great depression was created deliberately and every depression since Migration

No Work During the Great Depression

The migration of families & individuals due to lack of jobs was evidently common during the Great Depression. Encyclopedia Britannica describes the Great Depression as the “Longest and most severe economic depression ever experienced,” which “precipitated economic failures around the world” and triggered “major changes in the structure of the U.S. economy.” “To think that the scientifically engineered Crash of ’29 was an accident or the result of stupidity defies all logic,” concluded Allen.

Summary

This evidence suggests that The Great Depression was artificially created so the larger Wall Street firms, which control the stock market, could eliminate competition and make profits out of lending America money to recover from it.

“Competition is a sin.”
-John D. Rockefeller

http://www.thehiddenevil.com/crash.asp

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Government To Spend $500,000 On Texting Drug Addicts “Gay Lingo”

Government spends half a million texting gay lingo to meth addicts

Even as the Obama administration was using the sequester as an excuse to lock Americans out of the White House, the federal government spending binge continued unabated. CNSNews.com reports that, back in February, a federally-funded (i.e., taxpayer-funded) study began to send “gay lingo” text messages to methamphetamine addicts to try to get them to use fewer drugs and more condoms. The cost to taxpayers for this exercise? $509,840!

Heading the project is Dr. Cathy Reback, who works at the Friends Research Institute, Inc., in Baltimore. She told CNSNews.com that she and her team hope that, by sending these “gay lingo” text messages out for the next four years, methamphetamine users will clean up their act

“We did a pilot about four, five years ago with with 52 out-of-treatment MSM (males who have sex with males),” Dr. Reback explained. “And we sent them text messages that were gay specific – used gay lingo – and made references to the connection between high-risk sex and methamphetamine use among MSM.”

The current study, she added, will test the effectiveness of using text messages to alter gay meth addicts’ behavior.

“So what I wanted to do with this text messaging intervention was to optimize the opportunity to get these guys [to have safer sex] by sending text messages as opposed to ‘Come into my brick and mortar site that’s ten miles from your house, and come for a group [session].’ I mean – you know – okay maybe!” Dr. Reback explained.

“We have the technology to go beyond these brick-and-mortar interventions where you sit down with a counselor and you sit down in a group. … You know, send them text messages as they’re walking into a bathhouse, or while they’re getting dressed in their home, or on the computer to hook up with somebody.”

government cripples you and hands you a cane and then taxes and regulates the caneDr. Reback refused to show CNSNews any examples of the text messages, whether from the current study or from the earlier, trial study. She did say, though, that the text messages would go out five times a day, and that they will be timed to reach the users when they are most likely to engage in dangerous activity. These times were determined by a focus group.

The 285 study participants will be divided into three groups, all of which will report on their progress using self-evaluation forms. Group One will be able to communicate back and forth with the researchers; Group Two will get text messages, but no two-way communication; and Group Three will be the control group and won’t get any messages at all.

So, there’s the program: five text messages a day, for four years, to 285 study participants who will then report back every week, all for a cost to taxpayers of $509,840, or $1,789 per gay, methamphetamine-addicted man who engages in high risk sexual behaviors.

Dr. Reback believes that figuring out how to limit addiction and high risk sexual behaviors is a worthy endeavor that will save money, and lives, in the long run. She may well be right. However, at a time when our government is drowning in debt, and ordinary people have no jobs, this still seems like a remarkably self-indulgent program for the federal government (i.e., the taxpayers) to fund.

http://www.mrconservative.com/2013/06/19429-government-to-spend-500000-on-texting-drug-addicts-gay-lingo/

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