Has anyone noticed something odd lately? I mean, really odd, like the stillness one perceives in a forest at dusk, strangely devoid of the sounds of insects, birds and small mammals? One would correctly assume that it is an unnatural incident, filling the person with an oppressing dread.
That is happening now with the eerily creepy blackout of media coverage of the proposed increase of power to the Federal Reserve System. Why is that? Why isn’t the mainstream media covering an issue that could potentially change forever how money is loaned and collected from individuals, banks, companies, finance companies and other purveyors of currency? And why hasn’t the current crop of presidential candidates even chirped a peep about it?
The function of the Federal Reserve System as defined at http://usgovinfo.about.com/library/weekly/aa081599.htm is:
Functions of the Federal Reserve System
By 1913, America’s economic growth both at home and abroad required a more flexible, yet better controlled and safer banking system. The Federal Reserve Act of 1913 established the Federal Reserve System as the central banking authority of the United States.
Under the Federal Reserve Act of 1913 and amendments over the years, the Federal Reserve System:
- Conducts America’s monetary policy.
- Supervises and regulates banks and protects consumers’ credit rights.
- Maintains the stability of America’s financial system
- Provides financial services to the U.S. Government, the public, financial institutions, and foreign financial institutions.
The Federal Reserve makes loans to commercial banks and is authorized to issue the Federal Reserve notes that make up America’s entire supply of paper money.
Organization of the Federal Reserve System
Board of Governors
Overseeing the system, the Board of Governors of the Federal Reserve System, controls operations of the 12 Federal Reserve Banks, several monetary and consumer advisory committees and the thousands of member banks across the U.S.
The Board of Governors sets minimum reserve limits (how much capital is on hand) for all member banks, sets the discount rate for the 12 Federal Reserve Banks, and reviews the budgets of the 12 Federal Reserve Banks.
What is a “National” Bank
Any bank using the phrase, “National Bank” in its name must be a member of the Federal Reserve System. They must maintain minimum levels of reserves with one of the 12 Federal Reserve banks and must deposit a percentage of their customers’ savings account and checking account deposits in a Federal Reserve bank. All banks incorporated under a national charter are required to become members of the Federal Reserve System. Banks incorporated under a state charter may apply for membership. (“National Banks” from the US Code)
Now at first blush one would think that the ‘Fed’ is a government agency. It is not. If you notice in the fourth bullet point in paragraph one; “Provides financial services to the U.S. Government, the public, financial institutions, and foreign financial institutions. The keyword here is ‘provides’. The Fed ‘provides’ services to the U.S. Government and all banks. So in essence, the ‘Fed’ is a private contractor that runs the nations’ banks and other financial institutions which also are private companies. “Big deal”, you say? Well, for one thing, although the Fed was created by Congress, it isn’t answerable to Congress, therefore it isn’t answerable to the taxpayer; “The system is nominally controlled by member banks, i.e., all national banks plus some state banks, but real power rests with the board of governors in Washington. Fact number two: the Fed’s chairman …and board of governors are appointed for long terms by the president but can’t be removed by him and don’t report to him or anybody else…” (Link)
The Fed has also been linked with the One World Order since its inception. This isn’t tinfoil, it is documented fact. The people behind the formation of the Federal Reserve Act of 1913, J.P. Morgan, J.D. Rockefeller, Carnegie, Philip Dru and Cleveland Dodge, were war profiteers of the highest order during World War One:
Woodrow Wilson was elected President in 1913, beating incumbent William Howard Taft, who had vowed to veto legislation establishing a central bank. To divide the Republican vote and elect the relatively unknown Wilson, J.P. Morgan and Co. poured money into the candidacy of Teddy Roosevelt and his Progressive Party.
According to an eyewitness, Wilson was brought to Democratic Party headquarters in 1912 by Bernard Baruch, a wealthy banker. He received an “indoctrination course” from those he met, and in return agreed, if elected: to support the projected Federal Reserve and the income tax, and “listen” to advice in case of war in Europe and on the composition of his cabinet.
Wilson’s top advisor during his two terms was a man named Colonel Edward M. House. House’s biographer, Charles Seymour, called him the “unseen guardian angel” of the Federal Reserve Act, helping to guide it through Congress. Another biographer wrote that House believed: “…the Constitution, product of eighteenth-century minds…was thoroughly outdated; that the country would be better off if the Constitution could be scrapped and rewritten…” House wrote a book entitled “Philip Dru: Administrator,” published anonymously in 1912. The hero, Philip Dru, rules America and introduces radical changes, such as a graduated income tax, a central bank, and a “league of nations.”
World War I produced both a large national debt, and huge profits for those who had backed Wilson. Baruch was appointed head of the War Industries Board, where he exercised dictatorial power over the national economy. He and the Rockefellers were reported to have earned over $200 million during the war. Wilson backer Cleveland Dodge sold munitions to the allies, while J.P. Morgan loaned them hundreds of millions, with the protection of U.S. entry into the war.
While profit was certainly a motive, the war was also useful to justify the notion of world government. William Hoar reveals in “Architects of Conspiracy” that during the 1950s, government investigators examining the records of the Carnegie Endowment for International Peace, a long- time promoter of globalism, found that several years before the outbreak of World War I, the Carnegie trustees were planning to involve the U.S. in a general war, to set the stage for world government. (Link)
So one would assume that the Fed already possess extensive power over financial institutions, and the governments that house them, with impunity. But Bu$h Administration Treasury Secretary Henry Paulson feels the Fed needs even more powers:
The Bush Administration’s Treasury Secretary Henry Paulson has proposed an excessive broadening of powers for the Federal Reserve; the move is thought to be in reaction to the recent panic in the financial markets and overall economic instability in the United States.
The new powers granted to the Federal Reserve would include strengthened powers of oversight not only on Wall Street but in the broader scope of United States financial markets.
The New York Times is reporting that, “Many of the proposals, like those that would consolidate regulatory agencies, have nothing to do with the turmoil in financial markets.”
Looking back at the historical precedence for such a proposal, the similarities are striking between the events that led to the Federal Reserve in 1913 and the current proposal of the significant broadening of powers of the private central banking institution.
In both cases J.P. Morgan emerged on the other side of the dark economic times in better shape than when a major financial institution collapsed. In the case of the 1907 panic it was the man Jack Pierpont Morgan that benefited from the strain in the market and in the 2008 panic the financial banking institution J.P. Morgan has taken advantage of the hard luck of financial giant Bear Stearns. (Link)
Notice the author mentions our old friend, J.P. Morgan. Is this mere coincidence of statistical happenstance? “Use your feelings Luke. Feel the Force flow through you”, said the Shade of Obi-Wan Kenobi.
Present day war profiteers General Electric, Kellogg-Brown and Root, Halliburton, Blackwater, Lockheed-Martin and last but not least, our old pal J.P. Morgan-Chase, soon to be J.P. Morgan-Chase-Stearns all have made substantial campaign contributions to Bu$hco and associates. I’m certain if one digs hard enough, you’ll find these same companies kicked in some booty to the last three presidential candidates. And I know for certain GE owns media outlets (link).
So is it no wonder the One World Order is literally announcing its presence and power, without as much of a whisper from our vaunted ‘Fourth Estate’? Is it no wonder that our ‘representatives’ are mute on the matter of the final beggaring of the once vigorous American middle-class?
This is the beginning of the battle of our very survival as free human beings. The coming years will determine if freedom of the mind, body and spirit will have meaning in our lives. Or will human beings again be chattel for modern day Pharaohs, building monuments for them in order to ‘earn’ our daily bread for sustenance. Literally.
Eric Janzsen writes in the online February ’08 Harper’s Magazine:
Our economy is in serious trouble. Both the production-consumption sector and the FIRE sector know that a debt-deflation Armageddon is nigh, and both are praying for a timely miracle, a new bubble to keep the economy from slipping into a depression.
We have learned that the industry in any given bubble must support hundreds or thousands of separate firms financed by not billions but trillions of dollars in new securities that Wall Street will create and sell. Like housing in the late 1990s, this sector of the economy must already be formed and growing even as the previous bubble deflates. For those investing in that sector, legislation guaranteeing favorable tax treatment, along with other protections and advantages for investors, should already be in place or under review. Finally, the industry must be popular, its name on the lips of government policymakers and journalists. It should be familiar to those who watch television news or read newspapers.
There are a number of plausible candidates for the next bubble, but only a few meet all the criteria. Health care must expand to meet the needs of the aging baby boomers, but there is as yet no enabling government legislation to make way for a health-care bubble; the same holds true of the pharmaceutical industry, which could hyperinflate only if the Food and Drug Administration was gutted of its power. A second technology boom—under the rubric “Web 2.0”—is based on improvements to existing technology rather than any new discovery. The capital-intensive biotechnology industry will not inflate, as it requires too much specialized intelligence.
There is one industry that fits the bill: alternative energy, the development of more energy-efficient products, along with viable alternatives to oil, including wind, solar, and geothermal power, along with the use of nuclear energy to produce sustainable oil substitutes, such as liquefied hydrogen from water. Indeed, the next bubble is already being branded. Wired magazine, returning to its roots in boosterism, put ethanol on the cover of its October 2007 issue, advising its readers to forget oil; NBC had a “Green Week” in November 2007, with themed shows beating away at an ecological message and Al Gore making a guest appearance on the sitcom 30 Rock. Improbably, Gore threatens to become the poster boy for the new new new economy: he has joined the legendary venture-capital firm Kleiner Perkins Caufield & Byers, which assisted at the births of Amazon.com and Google, to oversee the “climate change solutions group,” thus providing a massive dose of Nobel Prize–winning credibility that will be most useful when its first alternative-energy investments are taken public before a credulous mob. Other ventures—Lazard Capital Markets, Generation Investment Management, Nth Power, EnerTech Capital, and Battery Ventures—are funding an array of startups working on improvements to solar cells, to biofuels production, to batteries, to “energy management” software, and so on. (link)
Wow. My ol’ buddy Highwayman sure called this one right, especially about ‘favorable tax treatment’, meaning Wall Street firms will get the favorable part, not us:
Yep, the Canadian element of Gore/Suzuki Morons Inc. are yapping their fool heads off, once again, bleating the virtues of a “Carbon Tax” that supposedly will make big business pay for polluting the environment! But, you know who REALLY is going to pay, now, don’t you? US! Not big business, whom ‘Stupid Pants’ really worships, but the common people! (link)
Say what you want about The Highwayman, (in fact, he doesn’t care what anyone thinks of him, he loves a good fight!) he has studied the world bankers and financiers for almost thirty years, so he has a good feel for what they do to the world’s working poor and middle classes. Yes, he’s a Christian and people accuse him of being a ranting fundie at times, but he’s a friend and never hid who he is from anybody.
Unfortunately, this economic bubble and tax the poor scheme the Federal Reserve gangsters have imposed upon us since 1913 is the only game in town. As Janzsen notes in his essay; “Given the current state of our economy, the only thing worse than a new bubble would be its absence.”
It gives the old tome ‘bubble, bubble, toil and trouble’ life like Frankenstein’s Monster! (Gawd, another cliche, somebody make me stop!)
Update: Interview of Investor Eric Janzsen in Wired Magazine; http://www.wired.com/science/planetearth/news/2008/03/cleantech_bubble