Archive for March, 2009

GRAND ILLUSION – THE FEDERAL RESERVE

March 10, 2009


The whole world is in a state of complete confusion. Americans are coming to the realization that their lives have been a grand illusion. You thought your neighbors had it made. They were driving a Mercedes, spent $40,000 on a new kitchen with granite countertops and stainless steel appliances, sent their kids to private school, had a second home at the shore, and took exotic vacations all over the world. Now their house is in foreclosure and you are paying to bail them out.


by Jim Quinn
(libertarian)
Tuesday, March 10, 2009

The whole world is in a state of complete confusion. Americans are coming to the realization that their lives have been a grand illusion. You thought your neighbor had it made. They were driving a Mercedes, spent $40,000 on a new kitchen with granite countertops and stainless steel appliances, sent their kids to private school, had a second home at the shore, and took exotic vacations all over the world. Now their house is in foreclosure and you are paying to bail them out. The anger and outrage in the country is at the highest level since the Vietnam War. The American public is being misled by government officials, politicians, and the Federal Reserve regarding the causes of this crisis and the solutions needed to solve our economic tribulations.

The average American does not know much about the Federal Reserve. The government and the Federal Reserve prefer to operate in the shadows. If the American public understood what their policies have done to their lives, they would be rioting in the streets. Most Americans believe that the Federal Reserve is part of the government. They are wrong. It is a privately held corporation owned by stockholders. The Federal Reserve System is owned by the largest banks in the United States. There are Class A,B, and C shareholders. The owner banks and their shares in the Federal Reserve are a secret. Why is this a secret? It is likely that the biggest banks in the country are the major shareholders. Does this explain why Citicorp, Bank of America and JP Morgan, despite being insolvent, are being propped up by Ben Bernanke and Timothy Geithner?

The history of National Banks in the United States has been controversial since the Founding Fathers signed the Declaration of Independence. The Constitution of the United States unequivocally states that only Congress has the authority to coin money, not an independent bank owned by unknown bankers.

The Congress shall have Power to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures

Article 1, Section 8 – US Constitution

Our most recent horrifying experience with an all powerful central bank has led to the current worldwide financial crisis. In less than one century the Federal Reserve Bank of the United States has destroyed our currency and has allowed bankers to gain unwarranted power over the country. They had the ability and opportunity to bring down the worldwide financial system. When the average American is told that the dollar has lost 95% of its purchasing power since the inception of the Federal Reserve in 1913, they look at you with a blank stare and start wondering whether American Idol is on TV tonight. The systematic inflation purposely created by the Federal Reserve silently robs the average American of their standard of living. The government began keeping official track of inflation in 1913, the year the Federal Reserve was created. The CPI on January 1, 1914 was 10.0. The CPI on January 1, 2009 was 211.1. This means that a man’s suit that cost $10 in 1913 would cost $211 today, a 2,111% increase in 96 years. This is a 95% loss in purchasing power of the dollar.

In the years following the creation of the Federal Reserve, inflation ran at double digit rates to finance Woodrow Wilson’s foreign intervention into World War I. The other notable period was in the years following President Nixon’s closing of the gold window in 1971. This led to rampant inflation that wasn’t tamed until the early 1980’s by Paul Volcker, the only independent courageous Federal Reserve Chairman in its history. The figures so far in the 21st Century seem modest. This is due partly to the methodical downward manipulation of the calculation by government bureaucrats. The period from 2010 to 2020 will show a dramatic jump caused by all of the money printing and reckless spending that is occurring today.

The average American might just conclude that prices always go up, so what’s the big deal about inflation. This is where the Federal Reserve and politicians have pulled the wool over your eyes. The CPI was 30.9 in 1964. Today, it is 211.1. This means that prices have risen 683% since 1964. The only problem is that your wages have not risen at the same rate, even using the government manipulated CPI. Using a true CPI figure, average weekly earnings are 64% below what they were in 1964. This explains why a family of five could live well with one parent working in 1964, but even with both parents working and using debt in prodigious amounts, the average family does not live as well today.

The dates February 3, 1913 and December 24, 1913 framed a year which placed our country on a downward fiscal spiral. The United States had tinkered with an income tax during the Civil War and the 1890’s, but the Supreme Court declared it unconstitutional. Until 1913, the U.S. government was restrained from overspending because it was completely reliant on tariffs and duties to generate revenue. The Sixteenth Amendment changed the game forever.

“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”

When you give a Congressman a dollar, he’ll take a hundred billion. The initial tax rates of 1% to 7% were rather modest. That did not last long. The top tax rate reached 92% during the 1950s and today rates are still 500% to 1,000% higher than they were in 1913. The government is addicted to tax revenue. In 2007, they absconded $1.2 trillion in taxes from American individuals. Does anyone think that the bloated government bureaucracy spent these funds more efficiently or for a more beneficial purpose than its citizens could have? Without $1.2 trillion in individual tax revenue, Congressmen would not be able to add 9,200 earmarks to the current $400 billion Federal spending bill every year.

According to the Federal Reserve’s own website, their duties fall into four general areas:

  1. Conducting the nation’s monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates.
  2. Supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers
  3. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
  4. Providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system

The American public was told that the Federal Reserve would eliminate any future bank panics. From 1913 through 1920, inflation increased at more than 10% per year as Wilson spent vast sums during World War I and its aftermath. From the early 1920s to 1929, the monetary supply expanded at a rapid pace and the nation experienced tremendous economic growth. By the end of the 1920s, speculation and loose money had propelled asset and equity prices to unsustainable levels.? The stock market crashed in 1929, and as the banks struggled with liquidity problems, the Federal Reserve cut the money supply.? This was the greatest financial panic and economic collapse in American history so far – and it never could have happened without the Fed’s intervention.? The Fed caused the bubble with loose monetary policy. The Depression did not become Great until the Smoot Hawley Act in 1930 destroyed world trade and the raising of the top income tax rates from 25% to 63% in 1932 destroyed the incentive to earn money. Over 9,000 banks failed and a few of the old robber barons’ banks managed to swoop in and grab up thousands of competitors for pennies on the dollar.

The Federal Reserve’s primary mandates were maximum employment, stable prices and moderate long-term interest rates. Their other chief function was to supervise and regulate banks to ensure the banking system is safe. Let us assess their success regarding their mandates:

  • Unemployment reached 25% during the Great Depression; attained levels above 10% in 1982; and will breach 10% in the next year. Grade: Failure
  • Since the Federal Reserve’s inception, the dollar has lost 95% of its purchasing power. Grade: Failure?
  • Interest rates have been anything but moderate since the inception of the Federal Reserve. They have consistently caused booms and busts by setting rates too low or too high. Grade: Failure
  • The Federal Reserve was supposed to supervise the activities of banks. Instead, under Alan Greenspan, they stepped aside and let banks take preposterous risks while giving an unspoken assurance that the Fed would clean up any messes that they caused. This total dereliction of duty gross negligence has led the greatest financial collapse in history. Grade: Failure

Anyone who is not mad as hell at this point is not paying attention. Your tax and spend politician leaders and your banker controlled Federal Reserve have borrowed and spent your tax dollars, your children’s tax dollars, and their children’s tax dollars desperately attempting to prop up this bankrupt system. The unleashing of a never ending tsunami of printed dollars by the Federal Reserve makes every dollar worth less. They have systematically created inflation that has slowly but surely reduced your standard of living. Politicians in the pocket of lobbyists, corporate interests, and bankers have used their power to tax in order to spend trillions on worthless projects in their districts to insure re-election. The combination of taxing and printing has led to a National Debt of $11 trillion.

Bankers love debt. The more debt, the more interest they collect. Issuing credit cards and collecting 21% interest and billions in late fees seemed like a can’t miss proposition. It was until people couldn’t pay the debt back. Now the unwinding of the greatest debt bubble in history has created a 2nd Great Depression. Instead of learning from the past, the Federal Reserve has chosen to do exactly what led to the crisis. They have lowered rates to 0% and have printed money at prodigious rates. The Fed has doubled their balance sheet in the last 12 months.

They have loaned billions to the bankrupt banks that inhabit our financial system while accepting worthless pieces of paper as collateral. They will not reveal to the public the banks they have loaned money to or the collateral that backs up those loans. The arrogance of Ben Bernanke proves that the Federal Reserve answers to bankers, and not to the American public. The books and records of the Federal Reserve are not open to scrutiny by the General Accounting Office. Ron Paul has introduced the Federal Reserve Transparency Act which would open their books to the public. No organization with as much power as the Federal Reserve should be permitted to operate in the shadows.

The future is cloudy but the direction is clear. Government will spend trillions of dollars. Congress will increase taxes on the rich and secretly raise taxes on the masses by calling them cap and trade fees. The Federal Reserve will pull out all stops to create inflation. When you owe the rest of the world $11 trillion, inflation makes the debt less burdensome. The dollar will decline versus gold. With the enormous amount of currency creation and spending by the government, the economy will eventually pull out of this depression. The acceleration will take the Federal Reserve by surprise. They will be hesitant to raise interest rates. The inflation genie will get out of the bottle and will not go back. The hyperinflation that takes hold will lead to social unrest, rioting, and a drastic reduction in the American standard of living.

There is no solution that will not be painful to everyone in the United States. The only solution that would put America back on a path of sustainable prosperity would be a gold/precious metals backed currency that would force government and its citizens to live within its means. Congress would need to vote for something that would take away its power. With our current political system, this is impossible. Money is power. This leads to only one conclusion. The existing Ponzi scheme will have to collapse before we can adopt a rational financial system for America. It may take decades, or it may happen in 2010. No one knows.

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Civil Unrest in America?

March 10, 2009

José Miguel Alonso Trabanco
Global Research
March 9, 2009

Eurasia is currently experiencing serious problems derived from financial and economic difficulties such as unemployment, GDP negative growth, currency depreciation, overall economic slowdown and so on. Several members of both the European Union and NATO (Poland, Hungary, Iceland come to mind) are already dealing with a considerable deal of domestic discontent. Some States from the Former Soviet Union (notably Ukraine, Belarus and the Central Asian Republics) and even Russia itself are facing similar problems. Even Chinese government officials acknowledge protests in the Chinese mainland, as pointed out by Professor Michael Klare, which means that East Asia is by no means an exception. As we shall see, financial and economic conditions are equally grave in the American hemisphere, if not more so.

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Paulson
The bailout plan promoted by former US Secretary of the Treasury Henry “Hank” Paulson amounts to a sum of money that is superior to the Louisiana Purchase, the New Deal, the Marshall Plan, the Apollo Lunar Project, the Korean War, the Vietnam War, the invasion of Iraq and other large government expenditures — combined.

Zbigniew Brzezinski, former National Security Advisor and early supporter of Barack Obama’s presidential campaign, has warned that civil unrest on American soil is a possibility that should not be dismissed. Brzezinski explains that “[the United States is] going to have millions and millions of unemployed, people really facing dire straits. And we’re going to be having that for some period of time before things hopefully improve. And at the same time there is public awareness of this extraordinary wealth that was transferred to a few individuals at levels without historical precedent in America…” Brzezinski concludes with this noteworthy remark “…hell, there could be even riots“.

The aforementioned means that the upper echelons of the American political elite have realized that the current financial and economic turmoil is not as bad as many experts had foreseen, they are well aware that it is actually much worse and that things could really spiral out of control if the present situation deteriorates even further. Indeed, optimistic signs are nowhere to be found. Quite the contrary.

The full magnitude of the financial tsunami is clearly reflected in a piece written by Barry Ritholtz, who states that the bailout plan promoted by former US Secretary of the Treasury Henry “Hank” Paulson amounts to a sum of money that is superior to the Louisiana Purchase, the New Deal, the Marshall Plan, the Apollo Lunar Project, the Korean War, the Vietnam War, the invasion of Iraq and other large government expenditures – combined (!). This illustrates that America’s top policymakers (both Democratic and Republican) hold serious concerns about the health of the American financial system and the American economy.

Lehman Brothers’ bankruptcy (the largest in American history) was merely the tip of the iceberg and economic and financial conditions have dramatically worsened ever since. On January 22 2009, the Christian Science Monitor published that the four largest U.S. banks “have lost half of their value since January 2.” Moreover, in the period from summer 2008 to March 2009, the Dow Jones Industrial Average index has decreased more than 50%. Furthermore, during February 2009 alone, more than 651 000 jobs were lost in the US, whose unemployment rate has now reached 8.1 %, the highest in 26 years. Also, some US car manufacturers (such as Ford, General Motors and Chrysler), once the pride of America’s industry, are practically on life support.

Steve Lohr, from the New York Times, writes that “Some of the large banks in the United States, according to economists and other finance experts, are like dead men walking.” Indeed, there were only two investment banks left: Morgan Stanley and Goldman Sachs and their condition is not exactly solid because they have managed to survive by becoming ordinary commercial banks. The Guardian reproduces an assessment by Bill Isaac, an experienced financial expert; he claims that the transformation of both Morgan Stanley and Goldman Sachs is “a shame because this country [the US] was built, in part, on risk-taking by Goldman and Morgan and by a whole bunch of firms before them.” Karl West, from the Daily Mail mentions that financial specialists warn that mammoth bank Citigroup “could collapse“.

All of the above indicates that the much-feared financial meltdown is no longer a distant and remote possibility because in fact it is already taking place. However, this chaos might trigger some very serious and preoccupying consequences. In order to have a clear understanding of these implications, it is vital to take into account some reports that were not given the proper amount of attention they deserved when they were first published.

Professor Michel Chossudovsky observed that the US Army 3rd Infantry’s 1st Brigade Combat Team returned from Iraq some months ago. That information is extremely disturbing because such military unit “may be called upon to help with civil unrest and crowd control“, according to official sources. Now, what scenario could possibly require the operational deployment of said units on American soil? Professor Chossudovsky puts forward an intriguing hypothesis that must be borne in mind. He argues that “Civil unrest resulting from from the financial meltdown is a distinct possibility, given the broad impacts of financial collapse on lifelong savings, pension funds, homeownership, etc“.

Shortly afterwards, the Centre for Research on Globalization website posted an article written by Wayne Madsen. Mr. Madsen claims that a highly confidential official report has been circulating among senior members of the US Congress and their top advisors. The report has been allegedly nicknamed as the “C & R document”. The author stipulates that those letters stand for none other than “conflict” and “revolution” because those scenarios are supposedly regarded by America’s policymakers as plausible consequences triggered by a financial meltdown. According to Mr. Madsen, the content of the document reveals that severe financial chaos could spark a major war if Washington refuses to honor its foreign debt and/or massive riots in  US cities if the American population does not accept a considerable tax increase.

For decades, overall political stability in the US was taken for granted. However, as it has been pointed out, even senior American statesmen are taking into consideration that financial volatility could fuel a wave of discontent which could easily reach troubling proportions. It seems that America itself is not immune from “regime-threatening instability” as the Pentagon and the American intelligence community terms it. It is likely that American government officials have not dismissed the worst-case scenario. Indeed it looks like they have been preparing accordingly.

Therefore, as has been scrutinized here, once one proceeds to connect the dots a very dark picture begins to emerge, to say the least. An all-encompassing cloud of uncertainty prevents us from formulating an accurate forecast regarding what developments will occur and how they will unfold during the next few months, let alone years. The only thing that can be taken for granted and that one can be sure of is that the unthinkable has now become thinkable.

Canadian Military Units To Undertake “Domestic Security”

March 10, 2009

Paul Joseph Watson
Prison Planet.com
Tuesday, March 10, 2009

Canadian Military Units To Undertake Domestic Security 100309top

The Canadian military is reorganizing its priorities to suit a “post 9/11-world,” by creating reservist units for each area of the country that would be tasked with providing “domestic security,” and involve roles such as the mass internment of citizens in the event of a terrorist attack.

“The Canadian military has embarked on a wide-ranging plan to turn its reserve soldiers into focused units trained and equipped to respond to a nightmarish array of domestic threats,” reports the National Post.

“The remodeling of the reserves will see the development of specialist units in four of the military’s regional divisions — Atlantic, Quebec, Ontario and the West.”

This is an open announcement that Canada has been subdivided into military units that will be policed by military reserves, who will take a “dominant role in domestic operations in the future,” according to the article.

Of course, the necessity of the change is dressed up using the notion of troops helping people in the event of earthquakes, floods and nuclear accidents, but we also learn that one of the duties that the reservists would potentially undertake would be mass internment of citizens in camps or quarantine zones after a biological terror attack.

“We are training to establish a perimeter,” said Brigadier-General Jean Collin. “Do I see a scenario when we might be obliged to keep people in? Probably. You need to be trained to be able to make sure that you don’t become a casualty in the process of doing that security.”

In light of that comment, it’s interesting to note that, according to the report, Brig-Gen. Collin, who has served in Bosnia and Afghanistan, “has also been a special advisor to the Chief of the Defence Staff on homeland security issues.”

Other roles for the military reservists would be to undertake law enforcement and other “security” duties for domestic events such as the 2010 Winter Olympic Games in Vancouver and the 2010 G8 summit of world leaders in Huntsville.

The story dovetails with a report out of Barrie, Ontario, where authorities are considering using troops from the local army base to patrol bar areas on weekends in a supposed attempt to prevent rowdiness.

Mention is also made of “scenarios that might require a form of constabulary or policing function for reserves in civilian containment and security.”

David Bercuson, director of the Center for Military and Strategic Studies at the University of Calgary, attempted to dismiss the premise by claiming reservists would oppose such measures.

“People in Ottawa sometimes forget that the reserves are volunteers. If you try to change the reserves in ways they don’t want to change, they just might not show up,” he said.

Would reservists oppose the use of military units for purposes of domestic law enforcement and not show up, or would they just follow orders under the justification of a breakdown in authority after a biological attack or mass rioting after a total economic collapse?

I’m not so confident that people who have been kicking down doors, abducting, torturing and killing people in Afghanistan for seven years under the justification that they are terrorists would be unwilling to do the same to Canadian citizens if they were drilled with the same propaganda.

The militarization of law enforcement duties in the U.S., Canada and Britain is accelerating at a pace never before seen.

Last week it was revealed that the British Army is on standby to deal with rioting on UK streets as a result of the economic crisis, according to a newspaper report, which states that MI5 is targeting political activists who could help create a “summer of discontent”.

Meanwhile, in the U.S., urban warfare training drills are taking place across the country as Northcom announces that tens of thousands of active duty troops will be stationed inside the U.S. for domestic purposes.

The U.S. Army War College in November released a white paper called Known Unknowns: Unconventional ‘Strategic Shocks’ in Defense Strategy Development. The report warned that the military must be prepared for a “violent, strategic dislocation inside the United States,” which could be provoked by “unforeseen economic collapse,” “purposeful domestic resistance,” “pervasive public health emergencies” or “loss of functioning political and legal order.” The “widespread civil violence,” the document said, “would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security.”

Obama, the Cloward-Piven Strategy, and the New World Order

March 10, 2009

Kurt Nimmo
Infowars
March 10, 2009

On March 9, Brannon Howse of Worldview Radio interviewed author James Simpson. Entitled “Barack Obama is Destroying Our Economy on Purpose,” Howse’s interview of Simpson concentrated on Columbia University professors Richard Andrew Cloward and Frances Fox Piven who wrote an article in 1966 for The Nation magazine. “The article was published on May 2, 1966 and laid out what is now known as the ‘Cloward-Piven Strategy’. The plan calls for the destruction of capitalism in America by swelling the welfare rolls to the point of collapsing our economy and then implementing socialism by nationalizing many private institutions,” explains a synopsis on the Worldview Radio website. “Cloward and Piven studied Saul Alinsky just like Hillary Clinton and President Obama.”

Alinsky is considered to be the founder of modern community organizing in America. Alinsky’s teachings influenced Obama early in his career as a community organizer on the far South Side of Chicago. Obama worked for Gerald Kellman’s Developing Communities Project where he learned and taught Alinsky’s methods for community organizing. Obama would later work for ACORN (the Association of Community Organizations for Reform Now.

According to Sol Stern of the Manhattan Institute, ACORN is a modern successor of the radical 1960’s “New Left” and holds a “1960’s-bred agenda of anti-capitalism” to be implemented through “undisguised authoritarian socialism.”

featured-stories - Obama, the Cloward-Piven Strategy, and the New World Order
Camp Delta
“This new and complete Revolution we contemplate can be defined in a very few words. It is … outright world-socialism, scientifically planned and directed,” H.G. Wells wrote in The New World Order.

It is a brand of “undisguised authoritarian socialism” supported by the establishment. As the Union News reported last October, ACORN receives funding from the Robin Hood Foundation, a charity supported — to the tune $9,859,453 — by the globalist George Soros and his Soros Fund Charitable Foundation.

“Soros is the visible side of a vast and nasty secret network of private financial interests, controlled by the leading aristocratic and royal families of Europe, centered in the British House of Windsor,” writes William Engdahl. According to Engdahl, Soros “is part of a tightly knit financial mafia — ‘mafia,’ in the sense of a closed masonic-like fraternity of families pursuing common aims.”

As Antony Sutton documented (Wall Street & the Bolshevik Revolution), the very fount of “authoritarian socialism” was created and lavishly funded by the bankers. “The involvement of the Rockefellers with their supposed blood enemies, the Communists, dates back to the Bolshevik Revolution,” notes Gary Allen (None Dare Call it Conspiracy, chapter 6). “The Federal Reserve-CFR insiders began pushing to open up Communist Russia to U.S. traders soon after the revolution.”

In addition, the bankers have supported “communism” in the United States. Considering this, it should come as no surprise the anti-capitalist “Cloward-Piven Strategy” was published by The Nation, a magazine with a well-documented connection to the CIA. As researcher Bob Feldman notes, The Nation is connected to the National Endowment for Democracy, a CIA front group involved in overthrowing countries around the world by way of “color revolution.” The CIA has a history of collaboration with the Ford Foundation (see James Petras: “The Ford Foundation and the CIA: A documented case of philanthropic collaboration with the Secret Police”).

In 1954, Rowan Gaither of the Ford Foundation told Reese Commission investigator Norman Dodd that “the directives under which we operate is that we shall use our grant making power to alter life in the United States so that we can comfortably be merged with the Soviet Union.”

This merging with the Soviet Union (or more accurately, “authoritarian socialism”) has nothing to do with the sort of communism taught in school textbooks — a dictatorship of the proletariat and the workers — but rather it is an authoritarian control system engineered by the bankers and the global elite. “This new and complete Revolution we contemplate can be defined in a very few words. It is … outright world-socialism, scientifically planned and directed,” H.G. Wells wrote in The New World Order.

It is a mistake to believe the Cloward-Piven Strategy is scheme cooked up by academic Marxists of “New Left” bent dedicated to the destruction of capitalism in the name of some sort of vaguely defined humanitarianism. In fact, “the destruction of capitalism in America by swelling the welfare rolls to the point of collapsing our economy and then implementing socialism by nationalizing many private institutions” is a meticulous plan on the part of the global elite to consolidate power and destroy all opposition.

It has nothing to do with liberating the proletariat but rather subjecting them to banker engineered “world-socialism, scientifically planned and directed” and devised to transform the planet into a banker dominated high-tech prison gulag.