This is a roll of toilet paper...
And this is a United States Federal Reserve note.
Given the choice, which would you prefer to possess? If you answered the federal reserve note, you've made a poor choice. You can wipe your ass far more times with a fresh roll of TP than you can with a dollar bill. But why, exactly, am I asking this question? Simple... Because the Federal Reserve has got to go, right now, we need to abolish it for the sake of our future. I would like to take a moment to talk about the creation of the Fed, it is a great story, and like all great stories it has villains and a nefarious plot, except that in this great story, the bad guys win and you and I are the losers. Life sucks sometimes. Just to spice it up, I'm going to write a poem about the creation of the Fed!
The Creation of the Federal Reserve.
In nineteen-hundred and thirteen, winter.
A group of senators decided to splinter,
They all supported a central bank
And wanted economies never to tank!
So they made some deals and greased some wheels,
they lined some pockets, sharpened their steels,
and prepared to hoodwink the unsuspecting,
whom all talk of finance and law were neglecting.
They named it "The Glass Bill" and it passed the house,
It passed the senate, as quiet as a door mouse,
But there were some differences yet to be fixed,
reception of the bill had become rather mixed...
Christmas time neared, and with it the promise,
of senate vacations over the winter solstice.
There were other promises, for example, no passage,
until they returned from vacation, no baggage!
Senators promised and nodded their heads,
Others went home, thinking the matter was dead.
But oh no! A quorum, what ever to do?
Our congress is going, to screw me and you!
Now the bill had been passed, no conspiracy here,
but the gentleman's promise was broke in arrears,
forced Wilson to sign it, by promising change,
instead all they brought us are decades of pain!
Yes, the federal reserve was founded on a pack of lies, and given so much power and so little oversight that even today nobody knows how it all works! Only now, nearly 100 years later is anyone questioning or trying to do anything about the fact that the Fed has no oversight.
First, let's clear up the big missconception about our friends at the Fed.
*They are not a part of the government, in other words, there is nothing federal about them.*
This is taken directly from the Fed's own website...
And this is a United States Federal Reserve note.
Given the choice, which would you prefer to possess? If you answered the federal reserve note, you've made a poor choice. You can wipe your ass far more times with a fresh roll of TP than you can with a dollar bill. But why, exactly, am I asking this question? Simple... Because the Federal Reserve has got to go, right now, we need to abolish it for the sake of our future. I would like to take a moment to talk about the creation of the Fed, it is a great story, and like all great stories it has villains and a nefarious plot, except that in this great story, the bad guys win and you and I are the losers. Life sucks sometimes. Just to spice it up, I'm going to write a poem about the creation of the Fed!
The Creation of the Federal Reserve.
In nineteen-hundred and thirteen, winter.
A group of senators decided to splinter,
They all supported a central bank
And wanted economies never to tank!
So they made some deals and greased some wheels,
they lined some pockets, sharpened their steels,
and prepared to hoodwink the unsuspecting,
whom all talk of finance and law were neglecting.
They named it "The Glass Bill" and it passed the house,
It passed the senate, as quiet as a door mouse,
But there were some differences yet to be fixed,
reception of the bill had become rather mixed...
Christmas time neared, and with it the promise,
of senate vacations over the winter solstice.
There were other promises, for example, no passage,
until they returned from vacation, no baggage!
Senators promised and nodded their heads,
Others went home, thinking the matter was dead.
But oh no! A quorum, what ever to do?
Our congress is going, to screw me and you!
Now the bill had been passed, no conspiracy here,
but the gentleman's promise was broke in arrears,
forced Wilson to sign it, by promising change,
instead all they brought us are decades of pain!
Yes, the federal reserve was founded on a pack of lies, and given so much power and so little oversight that even today nobody knows how it all works! Only now, nearly 100 years later is anyone questioning or trying to do anything about the fact that the Fed has no oversight.
First, let's clear up the big missconception about our friends at the Fed.
*They are not a part of the government, in other words, there is nothing federal about them.*
This is taken directly from the Fed's own website...
"Who owns the Federal Reserve?
The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.
As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."
The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year."
Seriously, does that make ANY sense to you? The doublespeak begins in the first paragraph! It's not a private institution, but it operates autonomously within the government? Doesnt sound very public to me... The next section, "Having public purposes and private aspects" is also bullshit... Public purposes and private aspects? The explanation about why they arent a private company is laughable... As is the section on congressional oversight... Seriously, to say they have oversight, but then also say that the Fed doesnt have to answer to anyone is confusing.
Smoke and mirrors... the art of obfuscation.
So what exactly do they DO? Well, they do a few things... firstly, they print the money. They also set monetary policy, which any freshman economics student will tell you consists of controlling the money supply, the reserve requirement (How much money banks have to keep physically on hand), and the discount window (lending cash to banks that need it). They play around with these numbers, lowering and raising rates using some sort of magic formula too complex for even our elected leaders, this gives them all the power in the world... And recently, they have been taking advantage of this power... They have been printing money at an alarming rate.
The chart below shows you the Adjusted monetary base according to the St. Louis branch of the Federal Reserve. To put things simply, the AMB is the total amount of money in the hands of regular people as well as retained in commercial bank desposits on reserve. It will give you an idea just how out of control things are right now... This year alone we more than doubled the supply of money...
What does that mean for you and I? Well, it means a few things... First of all, it means that the toilet paper from our example above will eventually cost a lot more than it does, because adding an extra trillion dollars to the money supply leads to a little something called inflation.
The contrarians among us will tell you that I am full of shit, and that inflation isnt coming. They will also tell you that the Fed is necessary and that we're all too stupid to understand monetary policy and should therefore trust Bernanke and his buddy Timmy G (Secretary of Treasury). I humbly disagree... Working in banking, I see countless reasons why they are wrong, I see them every day in the face of my clients... in the face of my leadership. If anyone, anyone, tells you that printing tons of money isnt going to devalue your money, they are lying to your face. It's common fucking sense.
If you grow apples, and there are a million apples to sell, they will sell for much less than if there was a bad year and apples are rare. Why? Because apples are a lot less precious... The Diamond industry has been doing this for years, keeping back supply so that the cost is artificially high. If there are trillions and trillions of dollars floating around, paying 50,000 for a flat screen TV doesnt seem like such a big deal right?
Dead, fucking, wrong.
I have been contributing to my 401k since I started working, and over time have built up a nice little nest egg for someone my age. I always give the max 15%, I never take loans or draws on it... But what will become of my precious savings if the money loses it's value? What will happen to the aging population who is counting on living on a fixed income until they die? What happens to all those kids whose parents paid into pre-paid college plans when the price of tuition spikes uncontrollably?
Nobody asks these questions, frankly, no one seems to care... but I do, and I am very concerned. Using a fiat money system is a reason for concern. Because frankly, the full faith and credit of the united states government just ISN'T enough for me in this global world... It apparently isn't enough for the rest of the world either.
Americans meanwhile, continue to live in their beautiful little bubble... I feel for them, really I do. I got caught in last years fertilizer bubble when an investment in Potash went south suddenly, lost about $5,000... it hurt me... a lot... kick in the nuts. My point is that when bubbles burst, people suffer. And when this bubble bursts, when the truth finally comes to light (if it ever comes to light) there will be a lot of pain and suffering, and furthermore a lot of anger at those lords and ladies and the Federal Reserve. I'll be among the first in line to get a piece of those cocksuckers...
To end, I just want to quote Congressman Charles Lindbergh, who said the following after passage of the Glass act in 1913... It echoes, though much more eloquently, how I feel about all of this...
"This Act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress. . . . If we had a people's Congress, there would be stability.
The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government."
God damn Chuck... Nail on the fucking head.
As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."
The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year."
Seriously, does that make ANY sense to you? The doublespeak begins in the first paragraph! It's not a private institution, but it operates autonomously within the government? Doesnt sound very public to me... The next section, "Having public purposes and private aspects" is also bullshit... Public purposes and private aspects? The explanation about why they arent a private company is laughable... As is the section on congressional oversight... Seriously, to say they have oversight, but then also say that the Fed doesnt have to answer to anyone is confusing.
Smoke and mirrors... the art of obfuscation.
So what exactly do they DO? Well, they do a few things... firstly, they print the money. They also set monetary policy, which any freshman economics student will tell you consists of controlling the money supply, the reserve requirement (How much money banks have to keep physically on hand), and the discount window (lending cash to banks that need it). They play around with these numbers, lowering and raising rates using some sort of magic formula too complex for even our elected leaders, this gives them all the power in the world... And recently, they have been taking advantage of this power... They have been printing money at an alarming rate.
The chart below shows you the Adjusted monetary base according to the St. Louis branch of the Federal Reserve. To put things simply, the AMB is the total amount of money in the hands of regular people as well as retained in commercial bank desposits on reserve. It will give you an idea just how out of control things are right now... This year alone we more than doubled the supply of money...
What does that mean for you and I? Well, it means a few things... First of all, it means that the toilet paper from our example above will eventually cost a lot more than it does, because adding an extra trillion dollars to the money supply leads to a little something called inflation.
The contrarians among us will tell you that I am full of shit, and that inflation isnt coming. They will also tell you that the Fed is necessary and that we're all too stupid to understand monetary policy and should therefore trust Bernanke and his buddy Timmy G (Secretary of Treasury). I humbly disagree... Working in banking, I see countless reasons why they are wrong, I see them every day in the face of my clients... in the face of my leadership. If anyone, anyone, tells you that printing tons of money isnt going to devalue your money, they are lying to your face. It's common fucking sense.
If you grow apples, and there are a million apples to sell, they will sell for much less than if there was a bad year and apples are rare. Why? Because apples are a lot less precious... The Diamond industry has been doing this for years, keeping back supply so that the cost is artificially high. If there are trillions and trillions of dollars floating around, paying 50,000 for a flat screen TV doesnt seem like such a big deal right?
Dead, fucking, wrong.
I have been contributing to my 401k since I started working, and over time have built up a nice little nest egg for someone my age. I always give the max 15%, I never take loans or draws on it... But what will become of my precious savings if the money loses it's value? What will happen to the aging population who is counting on living on a fixed income until they die? What happens to all those kids whose parents paid into pre-paid college plans when the price of tuition spikes uncontrollably?
Nobody asks these questions, frankly, no one seems to care... but I do, and I am very concerned. Using a fiat money system is a reason for concern. Because frankly, the full faith and credit of the united states government just ISN'T enough for me in this global world... It apparently isn't enough for the rest of the world either.
Americans meanwhile, continue to live in their beautiful little bubble... I feel for them, really I do. I got caught in last years fertilizer bubble when an investment in Potash went south suddenly, lost about $5,000... it hurt me... a lot... kick in the nuts. My point is that when bubbles burst, people suffer. And when this bubble bursts, when the truth finally comes to light (if it ever comes to light) there will be a lot of pain and suffering, and furthermore a lot of anger at those lords and ladies and the Federal Reserve. I'll be among the first in line to get a piece of those cocksuckers...
To end, I just want to quote Congressman Charles Lindbergh, who said the following after passage of the Glass act in 1913... It echoes, though much more eloquently, how I feel about all of this...
"This Act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress. . . . If we had a people's Congress, there would be stability.
The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government."
God damn Chuck... Nail on the fucking head.
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