Tag Archives: The Fed &Global Banking Cartel

The Suicide of the American Government: How the Global Banking Elite made our Elected Representatives Commit Suicide on Command

 The power crazed socialists of the Democrat Party have the reins of power and they’re bent on ending capitalism and inaugurate a new warm and fuzzy fascism that will cement the takeover of the United States by an elite financial oligarchy by ideological means. They’re going to turn us into a morose, weak, European state even if it kills us——– and it is killing us. The Obama worshiping fanatics will cry about compassion, green policies, tolerance and “evolving ethical standards” and my personal favorite, “social justice”, while the bankers solidify their power behind the scenes and pull the politicians strings with campaign contributions.

For decades the banking elites have, through corporate and philanthropic front organizations, corrupted and manipulated higher education and science until it routinely spits out “study’s” that support whatever the elites want us to believe. The crazed partisan media has been as corrupted as higher education and they routinely spout the elitist agenda, usually preceded by the phrase, “Science Says” to give legitimacy and cover to our invisible masters. On collage campuses across the nation they worry about global warming and saving the planet; they use bogus science to justify a social policy that sounds sophisticated and utopian but in reality is simply the global bankers repossessing the wealth and power of America. The professors scream “global warming” and the media screams “we’re all going to die” and the Government enacts Cap and Trade, and refuses to develop existing energy recourses for our own good and guess what??????? We’re dead.

Now maybe I’m getting cynical at midlife but when academics tells us that global warming is “settled science” and then suppresses and blackballs any scientist who dares present contradictory evidence I tend to think the liberal Scientists are lying. When Liberal Social Scientists tell me that Universal Health Care isn’t a Trojan horse for first legal, then mandatory, Euthanasia, (in spite of it being obviously government rationing of health care,) (Euthanasia) I tend to see the social scientists as liars. When the Government tells me that Universal Health Care is not about free abortions on demand; in spite of the fact that it’s in the legislation: I tend to “believe my lying eyes” rather than the government. Indeed when “Social Science” seems to find it necessary to enshroud the conventions of “political correctness” as American law via “Hate Crimes Legislation” and then suggests that any resistance to their agenda is “domestic terrorism” and “Christian Fanaticism” I tend to think I’m being conned.

Who benefits from the eternal political pie fight described above? The global banking elite, who print our money, spend and distribute it like salt water, and encourage us to become dependent on government in every way. They want us to be dependent on a government that they control, for our own good, as they work their will through unwitting dupes at the highest levels of our political parties. Corrupt Political Parties advance the goals of their super-wealthy masters while selling it as; Cap and Trade, Forced Vaccinations and Social Justice, and Environmentalism. They sell “Universal Health Care” not Abortion, Euthanasia and a new and frightening Eugenics program that replaces natural selection with a faceless committee of banking royalty.

The American Political System is broken and her wealth is being siphoned off to faceless transnational structures that are too big to fail, for our own good, by the people who pay the exorbitant prices to keep electing and reelecting our politicians, pay the salaries of our news media, and endow college chairs and research. The true power structure of our world is a transnational cabal of the super wealthy who wield more power than the present bought and paid for government of Barak Obama. Without the super wealthy elite there is and never would have been a Barak Obama and the coming fall of America from world leadership.

I never really understood the truth of the Bible saying that “the love of money is the root of all evil” but I understand it now. Money is about Power and Power is about Control and Control is about playing god—–Just like Satan wanted to do. Now I think I understand why our Christian Founding Fathers warned us that a Central Bank was “far more dangerous than a Standing Army!”

America is being raped, looted and burned to the ground as we stand in mute shock and stare at our children’s future going up in smoke. At Best we manage a pathetic whimper while our government, with a suicidal apathy at the highest levels, embarks on one obviously suicidal policy after another. The nation-state will die with America and a bizarre and evil transnational fascism of the financial elite will rule behind a facade of “government”. For all intents and purposes the world government predicted by the bible is already here— we just might not call it that. We the people will serve the jokers who are spending the money like salt water in a controlled demolition of the United States of America.

Consider the story below from the Associated Press because this is going to go on and on until the United States is toast.

 Federal deficit higher in July, $1.27T this year Record federal deficit climbs higher, $180.7 billion in July, $1.27 trillion so far this year •

By Martin Crutsinger, AP Economics Writer • On Wednesday August 12, 2009, 3:07 pm EDT WASHINGTON (AP) —

The federal deficit climbed higher into record territory in July, hitting $1.27 trillion with two months remaining in the budget year. The Treasury Department said Wednesday that the July deficit totaled $180.7 billion, slightly more than the $177.5 billion economists had expected.

The Obama administration is projecting that when the current budget year ends on Sept. 30, the imbalance will total $1.84 trillion, more than four times last year’s record-high. The soaring deficits have raised worries among foreign owners of U.S. Treasury securities including the Chinese, the largest holder of such debt. Massive amounts of government spending to combat the recession and stabilize the U.S. financial system have pushed the deficit higher.

The cost of wars in Iraq and Afghanistan, along with depleted government tax revenues, also are major factors. The July deficit reflected government spending of $332.2 billion, a record amount for any month and up from outlays of $263.3 billion in July 2008. Of that increase, about $25 billion reflected the fact that Aug. 1 was a Saturday this year, requiring many government benefit checks to be sent out earlier and counted as spending in July. Government receipts totaled $151.5 billion, down 5.6 percent from a year ago. It marked the 15th consecutive month that government receipts have been lower than the same month in the prior year, illustrating how deep the recession has cut into tax receipts.

Through the first 10 months of the budget year, receipts total $1.74 trillion, down 16.9 percent from the same period in 2008. Outlays totaled $3 trillion over the past 10 months, up 21.1 percent from the same period in 2008. The resulting deficit of $1.27 trillion compares to an imbalance of $388.6 billion during the year-ago period.

The deficit for all of 2008 was $454.8 billion, the current record holder in dollar terms. President Barack Obama’s economic team sought to reassure the Chinese during high-level talks last month that the administration is committed to reducing the deficits once the current economic and financial crises have been resolved. So far, interest rates have remained low as the Federal Reserve has kept the federal funds rate, a key short-term interest rate at a record low near zero in an effort to jump-start the economy. At the end of a two-day meeting Wednesday, Fed officials repeated their view that the weak economy was likely to “to warrant exceptionally low levels of the federal funds rate for an extended period.” The concern, however, is that rates could begin rising despite the Fed’s efforts if foreigners suddenly lose confidence in the government’s ability to manage its debt burden.

In bond markets, prices fell Wednesday after a fairly weak auction of $23 billion in 10-year Treasury notes. The Treasury Department is auctioning a record $75 billion in debt this week. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.75 percent from 3.70 percent ahead of the auction results and 3.67 percent late Tuesday. Bond prices jumped Tuesday as stocks fell. Investors will track demand because a drop in buyers could force the government to increase its payout. The resulting rise in rates would raise borrowing costs for the government as well as consumers and businesses, and could end up slowing the economy. The total public debt now stands at $11.6 trillion. Interest payments on the debt cost $452 billion last year, the largest federal spending category after Medicare-Medicaid, Social Security and defense.

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Sophistry: The Senate Runs Interference for Their Federal Reserve Masters

 

 

 

 

 

Who has the power to make the President and the Congress bow and fetch, while showing the utmost deference, and not so much as ask a single question, in a financial emergency, other than to do, without reflection or hesitation: exactly what they’re told to do?  Who has the sole power to print our money, charge us interest for doing so, while carefully managing inflation so as to loot the value out of our currency via inflation much as a storied vampire turns its victim into the undead?  Who has the power to cut deals with the money masters of foreign nations, many of whom are a de facto shadow government, with far more power than the official government?  What institution on Earth has absolutely no oversight while holding the planetary economy in its unregulated, secretive, dictatorial hands? Is it the Church?  Is it God?  No.

It’s the Nefarious Federal Reserve System. 

They run the show and congress and the president do not question them but spring to obey whenever Benjamin Bernanke issues a terse instruction in hushed but sonorous tones.  Gentle Ben is the chairman of the greatest criminal enterprise in history, his words make stocks rise and fall and his veiled threat to crash the economy if the Congress questions the “autonomy” of the Fed causes US Senators to quail in fear.  We the people have no right to question, in any way, the actions of these gangsters; indeed we must not even think we have the right to know their secrets because they rule the world and we are but hapless drones in their enlightened eyes.  No one is permitted to know the goings on of the money changers in the high temple of the Federal Reserve and no mere man may stand in the way of the descendants of the socially Darwinist Robber Barons of old: the worlds Rothschild’s, Rockefellers et. Al.  The machinations of these High Priests of Money can lift a country from squalor to untold heights and it can fell the last real superpower with a few economic bubbles and deft manipulation of interest rates.  The Central Bankers of the world represent the most insidious transnational powerbase imaginable with a true capability to dominate the world’s governments, in Toto, by their mysterious ways and transnational policies. 

One brave soul in the House of Representatives dared ask the Lordly Federal Reserve to cast aside its secrecy and as the House members warmed to the idea of asking this mighty power for a peak at the books: the Senate has quashed the whole idea in a fit of corruption and cowardice. There is no way the current crop of politicians will say “boo” to the real rulers of this country: the Federal Reserve.  No mere government is to know the true secrets of money and even the thought of questioning this criminal consortium of, mostly foreign bankers, who make up the Fed, must not be long tolerated.  Heaven forbid the people should wake up and call these bunko artists to account for their actions throughout history!

Consider this article from World Net Daily:

Senate torpedoes Fed Reserve audit
But House plan already has majority support


Posted: July 06, 2009
8:54 pm Eastern

© 2009 WorldNetDaily

Members of the U.S. Senate today rejected a proposal for an audit of the Federal Reserve, the private institution that virtually controls U.S. interest rates, money supply and other economic influences.

The Senate vote against the plan from Sen. Jim DeMint, R-S.C., was among a series of voice votes on a number of amendments to a spending bill that provides money for Congress’ own budget.

According to Roll Call, Majority Leader Harry Reid, D-Nev., had wanted the spending bill approved last month, but DeMint had resisted having the spending approved by unanimous consent.

The DeMint plan was to add an amendment to the spending bill that would have provided for an audit of the Fed to include information about its funding facilities, market operations and any agreements with foreign banks and governments, DeMint told senators, according to Reuters.

(Story continues below) 

“The Federal Reserve will create and disburse trillions of dollars in response to our current financial crisis,” DeMint said. “Americans across the nation, regardless of their opinion on the bailout, want to know where the money has gone.

“Allowing the Fed to operate our nation’s monetary system in almost complete secrecy leads to abuse, inflation and a lower quality of life,” he said, according to Retuers.

DeMint also has said he supports a bill that now is pending in the U.S. House that would call for such an audit.

WND has reported the plan, sponsored by U.S. Rep. Ron Paul, R-Texas, already has collected co-sponsorship from a majority of the members.

Paul has said shortly after his proposal reached that “crucial benchmark” that the bipartisan support is an indicator of how American is fed up with secrecy.

“I look forward to this issue receiving greater public exposure,” Paul said.

His bill has support from 245 members of the 435-member House already.

Paul long has opposed the power held by the Federal Reserve and its ability to manipulate the nation’s economy. He has launched multiple proposals to get rid of the private banking powerhouse, without significant support.

But in light of the current economic dowturn – the government takeover of the banking industry, the government’s demands for various auto industry bankruptcies, the government’s appointment of a “pay czar” – change apparently is coming.

“To understand how unwise it is to have the Federal Reserve, one must first understand the magnitude of the privileges they have,” Paul wrote in a recent Straight Talk commentary. “They have been given the power to create money, by the trillions, and to give it to their friends, under any terms they wish, with little or no meaningful oversight or accountability.”

He’s even said Congress should “reassert its constitutional authority over monetary policy.”

A companion bill to Paul’s also has been introduced in the Senate and was referred to the Committee on Banking, Housing and Urban Affairs.

The Constitution, Paul said, gives Congress, not the private Federal Reserve, “the authority to coin money and regulate the value of the currency.”

Stunning Fed fraud DVD just $4.95! ‘The Money Masters: How Banks Create the World’s Money’

Paul explained his advocacy for the H.R. 1207 audit in the U.S. House:

“Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar,” the Texas Republican said. “Since 1913 the dollar has lost over 95 percent of its purchasing power, aided and abetted by the Federal Reserve’s loose monetary policy.

“How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from inflation,” he said.

Paul called oversight of the Fed “long overdue.”

You’ve never needed to understand money like you need to understand it now! “Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free” unravels the deception of the Federal Reserve and presents a crystal clear picture of the financial abyss towards which we are heading.

“Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight of its operations,” he continued.

“The Federal Reserve can enter into agreements with foreign central banks and foreign governments, and the GAO is prohibited from auditing or even seeing these agreements. Why should a government-established agency, whose police force has federal law enforcement powers, and whose notes have legal tender status in this country, be allowed to enter into agreements with foreign powers and foreign banking institutions with no oversight?”

Paul’s bill would also make the Federal Reserve’s funding facilities, including the Primary Dealer Credit Facility, Term Securities Lending Facility, and Term Asset-Backed Securities Lending Facility subject to congressional oversight.

 

Rebellion in the Puppet Theatre: When Governments Warn of Central Bankers You Know its Trouble

 

 

 

The Nefarious Federal Reserve System and the gangster Al Capone have much in common these days.  It seems the Federal Reserve has shed its cloak of inscrutability for more flamboyant apparel as it has taken a very public leading role in combating the “financial crisis”.  Clearly the long term interests of the Fed are served by secrecy.  The Central Banks are owned by the super rich and they have prospered by secrecy and a cloak of obfuscation regarding their role as the governments, government.  It’s as if Al Capone had forgotten he was a gangster and a thief and that he had caused the problems he’s now trying so publicly to solve. Like Al Capone the Federal Reserve has no legitimate role in the economy because all the problems it would solve are self generated by an oligarchy of super rich families who are on to the next phase of social engineering by perverting the economy to do their bidding just as they used education and the media.

The Robber Barons of old, the Morgan’s, Rothschild’s, Rockefellers, were Millionaires before the last great Depression and they came out the other side as the world’s first Billionaires.  The cycle appears to be repeating and the Billionaire elites of today will doubtless emerge as the world’s first Trillionairs at the expense of every human being, and government, on this Earth. The worlds banking elites see their power grow after each economic depression and they fund both sides in our world wars so they always come out on top.

The Governments of the West, led by the USA, which is in turn a wholly owned subsidiary of the Federal Reserve System, have effectively been looted by financial institutions and industries deemed “too big to fail” and now the finale will be hyperinflation. The Federal Reserve may have avoided a depression with aggressive actions but they have surely destroyed the US Dollar in the process.  I doubt that we will be able to avoid a depression when the worthless US Dollar implodes from the Machiavellian Machinations of the central banks and the supremely powerful elites who own it.

The Power Elite masters of money have been so successful at hiding their control that most people believe that the Federal Reserve System is a part of the Federal Government.  It’s about as much a part of the government as “federal express”.  It’s a consortium of profit making banks that prints our currency for us, at interest of course, and lends it back to us and manages the financial world with limited involvement by the government. 

The President appoints the head of the Fed from a list of candidates supplied by the Fed!  The government can’t audit the Fed and has no input, beyond advisory input, into its decisions, policies or procedures.  The Fed is a completely autonomous central bank of the United States and its power, as people are beginning to wake up and see, by far surpasses the government of the United States.  The Fed can give us life, or it can take it away; in a contrived financial rescue that destroys the currency and with it the United States of America.  The Fed doesn’t work for America, or our government: it works for its stockholders and directors: the world’s elite banking dynasties.  If they decide the US must lose power they can do it and there’s nothing our government can do to stop them.

For much of our recent history there’s this tacit agreement between the financial elite and Western Governments in which we all agree to pretend that the financial elite don’t exist and the governments are calling the shots on world affairs.  Governments come and go and yet our course seems to be the same because the real power behind the Democrats and Republicans is the world’s financial elite.  It’s their policies that rule our lives not the political puppet theatre that is beholding to big money for election and re-election and high paid lobbying jobs and speaking fees if they should lose office. People are upset because the government seems not to listen to us, the people, anymore and they’re right.  The government, our professional politicians, listens to big money that controls the economy, education, media and government itself.  We can’t do anything to the professional politicians that big money can’t fix so why should they listen to us?  The lack of term limits has destroyed our power and given rise to a puppet theatre of politicians who base their decisions on the will of the financial elite rather than the will of the people.

A funny thing happened in Germany recently.  Their Prime Minister, Angela Merkel, accused the central banks of the west of creating another big bubble that threatens the German economy and that of every other nation as well.  The Germans don’t speculate about the economic conditions of the Weimar Republic as we do because they lived through it.  They know exactly what it can do, and did do, to Germany and the kind of leaders that emerge in economic conditions of such desperation.  It’s not a theoretical exercise for them, as it is for us in America,  it’s a living memory of pain etched on the faces of their grandparents and great grandparents.  Perhaps it’s not surprising that the only voice of warning from western governments rises from Germany about the dangers of hyper inflation and trashing your currency.  It’s a poignant cry of national memory that the world would do well to heed but the world goes on spending and borrowing while Chinese Students openly laugh at our Treasury Secretary Geithner as he assures them their American investments are “safe”.

Check out the following Article from the Wall Street Journal about the German Governments Warning:

 

Germany Blasts ‘Powers of the Fed’

By JOELLEN PERRY

AFP/Getty Images

In a speech on Tuesday in Berlin, Chancellor Angela Merkel expressed ‘great skepticism’ over the clout of central banks and suggested their aggressive moves in Europe, the U.S. and the U.K. might backfire. She is shown here at a rally later in Saarbrücken, Germany, for European Parliamentary elections.

German Chancellor Angela Merkel, in a rare public rebuke of central banks, suggested the European Central Bank and its counterparts in the U.S. and Britain have gone too far in fighting the financial crisis and may be laying the groundwork for another financial blowup.

“I view with great skepticism the powers of the Fed, for example, and also how, within Europe, the Bank of England has carved out its own small line,” Ms. Merkel said in a speech in Berlin. “We must return together to an independent central-bank policy and to a policy of reason, otherwise we will be in exactly the same situation in 10 years’ time.”

Ms. Merkel also said the ECB “bowed somewhat to international pressure” when it said last month it plans to buy €60 billion ($85 billion) in corporate bonds — a move that is modest in comparison to asset-buying by its counterparts, the U.S. Federal Reserve and the Bank of England. Details are to be unveiled by the ECB’s president, Jean-Claude Trichet, Thursday.

The public criticism is unusual — and not only because German politicians rarely talk harshly about central banks in public. When politicians around the world do criticize their central banks, they almost always gripe that they are too tightfisted.

The conservative German leader’s comments came as Europe’s statistical agency reported that unemployment in the 16 countries that share the euro rose to 9.2% in April — the highest level since September 1999 and still below the 11.5% that the European Commission forecasts for 2010.

However, the economic straits of countries within the euro zone vary widely. Germany’s unemployment rate of 7.7%, for instance, contrasts with 18.8% in Spain, where a collapse in the construction industry that was driving the economy has pushed unemployment to the highest in the euro zone.

It isn’t clear what triggered Ms. Merkel’s remarks, which came in a prepared speech. The ECB has been markedly less aggressive than the Fed or the Bank of England, particularly in moving beyond cuts in short-term interest rates to buy bonds to boost economic activity. However, German officials traditionally have been on the more conservative end of the central bankers’ spectrum, partly because the country’s hyperinflation of the 1920s is seared into people’s memories.

 

Reuters

European Central Bank President Jean-Claude Trichet will unveil Thursday details of a plan to buy some $85 billion in corporate debt. German Chancellor Angela Merkel said the ECB ‘bowed somewhat to international pressure.’

The ECB, the Fed and the Bank of England are increasingly vulnerable to criticism because they have played such a prominent role and crossed so many traditional lines in the past several months — even though they do appear to have steered their economies away from a repeat of the Great Depression. Neither the ECB, the Fed nor the Bank of England had any comment on Ms. Merkel’s remarks.

Her tough comments about the extent to which the central banks are intervening in the economy also come amid attacks on her by some in her conservative base for putting €1.5 billion of taxpayer money into a deal to shield Opel from parent company General Motors Corp.’s bankruptcy-protection filing.

Ms. Merkel’s critique jibes with statements from Axel Weber, the head of Germany’s central bank and a member of the ECB’s 22-person Governing Council. He has warned that too-loose monetary policy could fuel future inflation. Mr. Weber was among the body’s most vocal skeptics on asset purchases before the bond-buying program, reservations that were also shared by Jürgen Stark, another German on the ECB council. In a May 12 speech, Mr. Weber warned that overly generous monetary policy had helped build asset-price bubbles in the past.

In contrast, Athanasios Orphanides, the former Fed economist who now heads the Cypriot central bank, has been a vocal proponent of aggressive ECB policy. And many private-sector economists contend the ECB’s response to the global recession has been too cautious. The ECB cut its key rate to a record low of 1% in May. Mr. Trichet hasn’t ruled out further cuts, but most economists expect the central bank to stand pat Thursday and foresee the rate remaining at 1% for the rest of this year. The Fed cut its analogous rate nearly to zero in December and has said it will keep it there for some time.

Although the administration of President Barack Obama has carefully avoided criticizing the Fed, Republicans and Democrats in Congress have questioned the wisdom of the Fed’s power and its governance as they contemplate far-reaching changes to the nation’s financial regulatory structure. The senior Republican on the Senate Banking Committee, Richard Shelby of Alabama, recently asserted that “an inherent web of conflicts is built into the DNA of the Fed as it now exists,” a reference to commercial bankers’ role in overseeing the Fed’s 12 regional banks.

Some private economists — and a few inside the Fed — say the Fed’s aggressiveness is increasing the risks of an outbreak of inflation and creating the unwelcome perception that it will bail out big financial institutions when they take big risks that turn out badly.

The New World Order takes over Money: The G20 lays the Groundwork for Financial Domination

 

 

Internationalism is the order of the day it seems and with this “global economy” you have to have global regulation, global oversight if not outright global governance.  The way to take over the nations of the world is through the money and economic control.  The military as a means of world domination and conquest is obsolete compared to control of the global economy.  Military’s fight limited and local wars in our time because it’s too blunt an instrument for true global control.  Once you have control of the money the remaining governments of the earth will come along, quietly, non violently, it’s just a matter of time. What goose-stepping armies and panzer divisions couldn’t do can be done far more efficiently by nameless faceless bankers like Ben Bernanke who speak of monetary policy in sonorous hushed tones that immediately dictate the rise and fall of stock markets, economies, and nations.  Like a drug pusher the internationalists believe that once your population sips the wine of middleclass servitude your hooked far more powerfully than if you had taken crack cocaine.  This magical cartel that helps nations iron out their economic difficulties, at the expense of having the cartel manage the currency, bespeaks outrageous power for the governing class, planetary domination for the banking elite, and productive work for the rest of us; perhaps with retirement benefits and even dental coverage. Who can say no to three weeks off each year?

The real news of the G20 meeting is in the international structures that have been put in place and that will grow rapidly.  The language is too arcane for the working people of the world and its self important complexity cloaks the new world order currency as “special drawing rights” at the IMF.  Renaming things has become a habit in the baby boom age but the effectiveness of the tactic was born in the early 1900 when the bankers realized that America would never accept a Central Bank: but it would accept a Federal Reserve System.  If you don’t like what Infanticide implies about yourself or your country just call it a woman’s constructional right to “reproductive freedom”.  Problem solved.  America won’t stand for a new world currency but it won’t even notice “special drawing rights” at the IMF.  The world is being radically changed by innocuous sounding words that no one quite knows the meaning of: like International Contingency Operations is how the elite spell WAR ON TERROR these days.  Cleaver huh?

Well, give the following article by the Telegraph.co.uk a read and remember what it says because they’re giving us a whole new lexicon for post free, neo employee America in a brave new world.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/5096524/The-G20-moves-the-world-a-step-closer-to-a-global-currency.html

The G20 moves the world a step closer to a global currency

The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity.

 

By Ambrose Evans-Pritchard
Last Updated: 2:06PM BST 03 Apr 2009

A single clause in Point 19 of the communiqué issued by the G20 leaders amounts to revolution in the global financial order.

“We have agreed to support a general SDR allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity,” it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century.

In effect, the G20 leaders have activated the IMF’s power to create money and begin global “quantitative easing”. In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body. Conspiracy theorists will love it.

It has been a good summit for the IMF. Its fighting fund for crises is to be tripled overnight to $750bn. This is real money.

Dominique Strauss-Kahn, the managing director, said in February that the world was “already in Depression” and risked a slide into social disorder and military conflict unless political leaders resorted to massive stimulus.

He has not won everything he wanted. The spending plan was fudged. While Gordon Brown talked of $5 trillion in global stimulus by 2010, this is mostly made up of packages already under way.

But Mr Strauss-Kahn at least has resources fit for his own task. He will need them. The IMF is already bailing out Pakistan, Iceland, Latvia, Hungary, Ukraine, Belarus, Serbia, Bosnia and Romania. This week Mexico became the first G20 state to ask for help. It has secured a precautionary credit line of $47bn.

Gordon Brown said it took 15 years for the world to grasp the nettle after Great Crash in 1929. “This time I think people will agree that it has been different,” he said.

President Barack Obama was less dramatic. “I think we did OK,” he said. Bretton Woods in 1944 was a simpler affair. “Just Roosevelt and Churchill sitting in a room with a brandy, that’s an easy negotiation, but that’s not the world we live in.”

There will be $250bn in trade finance to kick-start shipping after lenders cut back on Letters of Credit after September’s heart attack in the banking system. Global trade volumes fell at annual rate of 41pc from November to January, according to Holland’s CPB institute – the steepest peacetime fall on record.

Euphoria swept emerging markets yesterday as the first reports of the IMF boost circulated. Investors now know that countries like Mexico can arrange a credit facility able to cope with major shocks – and do so on supportive terms, rather than the hair-shirt deflation policies of the old IMF. Fear is receding again.

The Russians had hoped their idea to develop SDRs as a full reserve currency to challenge the dollar would make its way on to the agenda, but at least they got a foot in the door.

There is now a world currency in waiting. In time, SDRs are likely evolve into a parking place for the foreign holdings of central banks, led by the People’s Bank of China. Beijing’s moves this week to offer $95bn in yuan currency swaps to developing economies show how fast China aims to break dollar dependence.

French President Nicolas Sarkozy said the summit had achieved more than he ever thought possible, and praised Gordon Brown for pursuing the collective interest as host rather than defending “Anglo-Saxon” interests. This has a double-edged ring, for it suggests that Mr Brown may have traded pockets of the British financial industry to satisfy Franco-German demands. The creation of a Financial Stability Board looks like the first step towards a global financial regulator. The devil is in the details.

Hedge funds deemed “systemically important” will come under draconian restraints. How this is enforced will determine whether Mayfair’s hedge-fund industry – 80pc of all European funds are there – will continue to flourish.

It seems that hedge funds have been designated for ritual sacrifice, even though they played no more than a cameo role in the genesis of this crisis. It was not they who took on extreme debt leverage: it was the banks – up to 30 times in the US and nearer 60 times for some in Europe that used off-books “conduits” to increase their bets. The market process itself is sorting this out in any case – brutally – forcing banks to wind down their leverage. The problem right now is that this is happening too fast.

But to the extent that this G20 accord makes it impossible for the “shadow banking” to resurrect itself in the next inevitable cycle of risk appetite, it may prevent another disaster of this kind.

The key phrase is “new rules aimed at avoiding excessive leverage and forcing banks to put more money aside during good times.” This is more or less what the authorities agreed after the Depression. Complacency chipped away at the rules as the decades passed. It is the human condition, and we can’t change that.

 

It’s About Control, Stupid: Obama Administration Won’t Allow Banks to Return the TARP Money

 

I like Stuart Varney.  He’s one of my favorite commentators on the Fox Business Network and he’s a refugee from the Socialist European System who wanted to live in America when the real Briton surrendered to the socialist left. He’s smart as a whip and very mainstream being on the very popular Fox Network.  He did an opinion piece being carried in the Wall Street Journal that made my jaw drop when I read it.  He pulls no punches and recounts a story of a bank trying to give back the TARP money and speculates that the Obama Administration won’t take the money because the real objective seems to be control of the Financial Industry by Washington Politicians.

It’s one thing to have watched the government spin out of control in recent years and to have seen the current “financial crisis” for what it is but more and more mainstream media personalities are openly expressing opinions that would only be aired by fringe conspiracy groups.  This is Stuart Varney of the Fox Business Network writing in the Wall Street Journal for heaven sake!

I can only wonder what repercussion may come Mr. Varney’s way as the Criminal Congress and the Criminal Obama Regime will have to move against such commentaries soon if they’re serious about all these ambitious socialist makeovers for our nation.  Read this commentary carefully from a man who literally fled the socialist wave that engulfed and enfeebled Europe years ago and ask yourself if it can happen here.  Varney never thought it could……  Now he opens this opinion piece with the words, “I must be naïve.”  Here’s the URL for the full article:

http://online.wsj.com/article/SB123879833094588163.html               

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I must be naive. I really thought the administration would welcome the return of bank bailout money. Some $340 million in TARP cash flowed back this week from four small banks in Louisiana, New York, Indiana and California. This isn’t much when we routinely talk in trillions, but clearly that money has not been wasted or otherwise sunk down Wall Street’s black hole. So why no cheering as the cash comes back?

My answer: The government wants to control the banks, just as it now controls GM and Chrysler, and will surely control the health industry in the not-too-distant future. Keeping them TARP-stuffed is the key to control. And for this intensely political president, mere influence is not enough. The White House wants to tell ’em what to do. Control. Direct. Command.

It is not for nothing that rage has been turned on those wicked financiers. The banks are at the core of the administration’s thrust: By managing the money, government can steer the whole economy even more firmly down the left fork in the road.

If the banks are forced to keep TARP cash — which was often forced on them in the first place — the Obama team can work its will on the financial system to unprecedented degree. That’s what’s happening right now.

Here’s a true story first reported by my Fox News colleague Andrew Napolitano (with the names and some details obscured to prevent retaliation). Under the Bush team a prominent and profitable bank, under threat of a damaging public audit, was forced to accept less than $1 billion of TARP money. The government insisted on buying a new class of preferred stock which gave it a tiny, minority position. The money flowed to the bank. Arguably, back then, the Bush administration was acting for purely economic reasons. It wanted to recapitalize the banks to halt a financial panic.

Fast forward to today, and that same bank is begging to give the money back. The chairman offers to write a check, now, with interest. He’s been sitting on the cash for months and has felt the dead hand of government threatening to run his business and dictate pay scales. He sees the writing on the wall and he wants out. But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with “adverse” consequences if its chairman persists. That’s politics talking, not economics.

Think about it: If Rick Wagoner can be fired and compact cars can be mandated, why can’t a bank with a vault full of TARP money be told where to lend? And since politics drives this administration, why can’t special loans and terms be offered to favored constituents, favored industries, or even favored regions? Our prosperity has never been based on the political allocation of credit — until now.

Which brings me to the Pay for Performance Act, just passed by the House. This is an outstanding example of class warfare. I’m an Englishman. We invented class warfare, and I know it when I see it. This legislation allows the administration to dictate pay for anyone working in any company that takes a dime of TARP money. This is a whip with which to thrash the unpopular bankers, a tool to advance the Obama administration’s goal of controlling the financial system.

After 35 years in America, I never thought I would see this. I still can’t quite believe we will sit by as this crisis is used to hand control of our economy over to government. But here we are, on the brink. Clearly, I have been naive.

 

 

The Return of the Gold Standard: Russia will propose this to Discipline the World Financial Systems

 

 

 

Russia and China and others have called for a new currency standard separate and apart from the US Dollar.  The recent economic storms have shown the weakness of our fiat dollar as the Federal Reserve prints money at an alarming rate and our Treasury Department spends it faster than it can be printed!  The people who are stuck holding the bag are the American People who see their savings made valueless by government malfeasance and creeping socialism.  The Chinese, the Arabs, the Russians, the Japanese and every other government on earth who holds much wealth in our ever deprecating dollar are fit to be tied as our policies devalue their wealth.  They were assured that the dollar would remain stable and the government would never take the steps we’ve now taken, and continue to take, to debase the value of our currency.  China has expressed alarm in recent weeks and the United Nations panel has openly called for a new world currency.  Europe has been making plans along similar lines but we continue to pursue a course that can only end badly for our nation and our dollar.

The only sane thing to do is to find an international unit of wealth, like gold, or perhaps some other combination of commodities that will force discipline on a currency and force governments to live within their means. Having the dollar backed by the thin air has given too much power to the Federal Reserve and Congress to follow their own agenda by siphoning off the wealth of the people who believed in the dollar and the integrity of the American System. It may well be the case that investing in the US Government becomes indistinguishable from investing with Bernie Madoff because the result is the same.

There are many problems with trying to go back to a gold standard and Russia is the first major nation to suggest it.  This will be a trend to watch because the world is quite serious about getting off the dollar and as our nation continues to debase our currency the world will change to something else.  Here’s an article from the Telegraph.co.uk and its URL:

http://www.telegraph.co.uk/finance/financetopics/g20-summit/5072484/Russia-backs-return-to-Gold-Standard-to-solve-financial-crisis.html

 

Russia backs return to Gold Standard to solve financial crisis

Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.

 

By Ambrose Evans-Pritchard
Last Updated: 8:23AM BST 30 Mar 2009

 

Arkady Dvorkevich, the Kremlin’s chief economic adviser, said Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund.

Chinese and Russian leaders both plan to open debate on an SDR-based reserve currency as an alternative to the US dollar at the G20 summit in London this week, although the world may not yet be ready for such a radical proposal.

Mr Dvorkevich said it was “logical” that the new currency should include the rouble and the yuan, adding that “we could also think about more effective use of gold in this system”.

The Gold Standard was the anchor of world finance in the 19th Century but began breaking down during the First World War as governments engaged in unprecedented spending. It collapsed in the 1930s when the British Empire, the US, and France all abandoned their parities.

It was revived as part of fixed dollar system until US inflation caused by the Vietnam War and “Great Society” social spending forced President Richard Nixon to close the gold window in 1971.

The world’s fiat paper currencies have lacked any external anchor ever since. It is widely argued that the financial excesses and extreme debt leverage of the last quarter century would have been impossible – or less likely – under the discipline of gold.

Russia is a major gold producer with large untapped reserves of ore so it has a clear interest in promoting the idea. The Kremlin has already instructed the central bank of gradually raise the gold share of foreign reserves to 10pc.

China’s government has floated a variant of this idea, suggesting a currency based on 30 commodities along the lines of the “Bancor” proposed by John Maynard Keynes in 1944.

An Offer We Can’t Refuse: The Federal Reserve Chairman Reminds Treasury Who’s Boss!

 

Here is a Fairy Tale about the Economic State of America followed by the moral of the story. 

In these times of cooperation and mutual love and respect, dare I say unbridled affection, the Department of the Treasury and the Global Banking Cartel that owns our country: (known as the “Federal Reserve Board”) the line blurring what belongs to the controlling super banks (the Fed) and the US taxpayer has blurred so as to be indistinguishable?  It’s as if the superrich, who own the international banking system, and the US government who is blithely stimulating the economy with borrowed money, have joined forces to both bankrupt us and break our currency at the same time.  Heartwarming isn’t it? 

It’s as if the Fed and the US Treasury Department had fallen in love and were in the habit of tucking each other into bed at night with a lingering kiss and a sigh of contentment, glorious unity and harmony between our guardian of tax dollars and the controllers of our currency and the outright lords of international finance.  It’s a love story for the ages: Helicopter Ben Bernanke is our Daddy and Timmy Geithner is our devoted but ditsy Mommy (who sometimes forgets to pay his taxes) but who’s love for Daddy Ben gives us a warm feeling of contentment and security.

But then a snake entered the unholy paradise of the money kingdom and Mommy Geitherner and Daddy Ben began to look at each other strangely each night before falling gently into untroubled sleep and dreams of avarice.

“Ben” Mr. Giethner would say.  “I’m not just Mrs. Benjamin Bernankey but I have an important role in this marriage too.  I’m not just an object of money and signer of promissory notes but the guardian of our nation’s purity and strength.” 

Daddy Ben looked at the Missus with bemusement and affection smiling his enigmatic smile that once so beguiled the young Secretary of the Treasury.  “Don’t you worry your poor little head my dear because as always: Daddy Ben knows best!” Bernankey chuckled, not unlike a serial killer, “On the other hand perhaps we should clear up some of the expectations you need to conform to.  Not just you but Uncle Barak and all those silly people in congress.”  Bernanke chuckled again his eyes becoming cold and reptilian.

“Now Ben….” Giethner said with a small yet hysterical laugh

“Sign this one page division of duties that we may be ever united in our marriage of convenience and combat this financial crisis I caused”. Bernanke intoned in a meanasing whisper that was most unpleasant.

“What does it say” Geithener said nervously.

“You Question me!” Bernanke bellowed as all living parlor left his face.  “You dare question me?  It says you won’t question me ever again in any meaningful way and that I don’t answer to you and that while we’re married, as far as your concerned, I retain my bachelor status.  I decide what needs to be done and you do it.”  Bernanke eyes lit with an unearthly green light.  “It’s a match made in heaven, my dear.”

“Ben, you frighten me when you say things like; you retain your total independence while retaining absolute control over the money.  It makes me think you don’t love me anymore.” Githner looked as young and cute as he could when he said this but his paramour, Helicopter Ben Bernanke, continued to morph into an otherworldly monstrous apparition.  Geithner automatically reached for a pen and signed without reading the document; by now it was habit.

“Very good” the ghoulish Fed Chairman intoned as he handed Geithner a shiny gold credit card.  “Here, go play with this and buy yourself something pretty to stimulate the economy”, the Wiley Banker snickered in spite of himself.  “Spend on and don’t worry: be happy, my dear”.

“Oh good.  I so wanted to go shopping and give ACORN some billions today!”  Geithner uncharacteristically hesitated.  “Are you sure it’s ok for me to go shopping again?  I was thinking of building a space needle in downtown Truth or Consequences New Mexico….. But if we don’t have the money….”

Helicopter Ben roared with laughter once again morphing into the bald prince charming we’ve all come to love.  “Silly goose!” he snickered while tweaking Geithners nose.  “I decide when the spending is over!” 

They both laughed with relief and sheer joy that their spat was over.  And if Geithner wondered if Ben was good for the money; he didn’t show it.  And if Ben wondered if Geithner would ever grow a brain; he didn’t show it either.

Here are some possible morals for our story:  Never take financial advice from someone who thinks you can throw money out of a helicopter to stimulate the economy.

Or perhaps its that a central bank is more dangerous to our liberty than a standing army. 

Or perhaps its that we should always spend less than we make and force the government to do likewise.

Now consider this story below and ask yourself if the day is coming when the interests of the nefarious Federal Reserve and the crack addict spending of the US Treasury Department diverge regarding spending?  Does this portend the eventual pulling of the Rug out from under Geithner and Obama?  Time will tell. I got this Article from Bloomberg and here’s the URL for the whole article:

http://www.bloomberg.com/apps/news?pid=20601087&sid=abuPwlNJSeis&refer=home

 

Bernanke Seeks to Avert Pressures on Fed After Crisis (Update1)

 

 

By Craig Torres

on March 23, on a day dominated by release of the Obama administration’s plan to save the banking system and the fourth-best day in postwar Wall Street history, the U.S. Treasury and Federal Reserve released a one-page joint statement on the division of economic responsibilities between the two agencies.

Amid the flurry of news, the statement passed with little public attention; neither the New York Times nor Wall Street Journal printed articles about it the next day. The release said that while the Fed collaborates with other agencies to preserve financial stability, it alone is in charge of keeping consumer prices stable, its independence “critical.”

The statement was the culmination of a behind-the-scenes, two-month long debate involving the Fed’s Open Market Committee, as well as the Treasury. The discussions were driven by Chairman Ben S. Bernanke’s concern that work with the Bush and Obama administrations on repairing banks and markets not lead to attempts at political pressure later that would delay the start of measures to combat inflation.

“This is all about independence,” said Laurence Meyer, vice chairman of Macroeconomic Advisers LLC in Washington and a former Fed governor. “Even though the Fed is cozying up to the Treasury, it is important to know that the Fed would maintain some stability over monetary policy.”

1951 Agreement

JPMorgan Chase & Co. analyst and former Fed economist Michael Feroli called the statement “The 2009 Treasury-Fed Accord,” harkening back to a joint announcement by the agencies in March 1951 that freed the central bank from pegging government-bond rates.

Fueling the debate is the concern that policy makers will have a tough time if they try to end their emergency-lending programs as soon as next year while the unemployment rate, currently a quarter-century high 8.1 percent, remains at elevated levels.

The risk is that, on the one hand, lawmakers and even some administration officials might balk at what they would see as premature steps, and on the other hand that any hesitation on the Fed’s part could spark inflation.

“If we have a slow recovery, which seems likely, who is going to watch them raise interest rates as the Treasury sells this mountain of debt” stemming from fiscal deficits, Allan Meltzer, author of “A History of the Federal Reserve,” said in a Bloomberg Television interview. Politicians “are not going to let them do that, they are not going to want them to do that.”