http://www.real-debt-elimination.com/bank_fraud/Collapse_of_the_Dollar.htm
I just learned the other day that the Federal Reserve Banks of the United States are not government agencies, they’re private.
“If the American people ever allow private banks (the Federal Reserve Banks) to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered..” --Thomas Jefferson
I recently stumbled across a few interesting tidbits. First, JFK wrote an executive order that repealed the Federal Reserve Act of 1913. Executive Order 11110.
The Order was for the Treasury to issue silver certificates against all silver held by the government which did not already have certificates against it. The Order was needed due to the passage of Public Law 88-36 which repealed the Silver Purchase Act and other related monetary measures. One result was that after the repeals, only the President could issue new silver certificates.
The Federal Reserve System could replace the certificates, but only in larger denominations. The thrust of the Order returned the authority to issue new silver certificates (and specify denominations) back to the U.S. Treasury.
This executive order allowed for the Federal Reserve System to distribute and exchange currency at lower denominations that met the growing economic need. The authoritative basis for the Order was substantially nullified in 1982 with the passage of Public Law 97-258.
The Order was never directly reversed. However, Section 1(j) of Executive Order 10289, which was added by Section 1(a) of Executive Order 11110, was revoked when Ronald Reagan signed Executive Order 12608 in 1987.
Hmmmmmm….
Second, that there’s currently a movement afoot to abolish the Fed in hopes that we can end the madness. The End the Fed Movement.
Here are some highlights of the thinking…:
The turn of the century brought with it a paradigm shift in economic policy in America. With the flight of the domestic manufacturing sector, America’s balance of trade rapidly became extremely unbalanced. In an attempt to keep the economy afloat, the Fed targeted the American Consumer as a replacement for the American Producer as the chief contributor to the U.S. economy. To insure the American Consumer would be, at least temporarily, capable of such a task, “Bubbles” lowered short-term interest rates to their lowest level since 1958. This action, combined with the introduction of a plethora of reckless mortgage products, (ARMS, interest only loans, etc.), provided for an unprecedented number of new home purchases. Over thirty percent of those purchases were made by lower income individuals who had previously been unable to qualify for mortgage loans. The result was a boom in residential construction, and all related industry. The domestic housing market had effectively filled the void that resulted from the flight of the manufacturing sector and, in doing so, became a primary contributor to the American economy. That, coupled with a wave of refinancing, spurred on by the lure of cheap credit, allowed homeowners to bury themselves in debt. The application of this new found cash provided borrowers the means to buy new SUVs and invest in stocks, which effectively held up the automotive industry, as well as helping to keep the markets inflated.
Fast forward to the present. Real unemployment is running around 12%. Wages have been stagnant for the past four years. Almost everyone who wanted to refinance has already done so. Their refi money has already been spent. The automotive industry, and the housing industry are both beginning to feel the pinch. Rising energy costs, which are a result of a growing scarcity, as well as inflation, are exacerbating the situation. The DOW, which has remained basically flat over the last three years when valued in U.S. dollars, is substantially down when valued against the Euro, the Rand, the Yen and several other major currencies. The continuing devaluation of the dollar has provided the DOW with the appearance of strength, at least to the American public. More smoke and mirrors. In order to continue to lure foreign investment, the illusion that the economy is healthy and robust is of paramount importance. This presents a big problem considering our economy is in the throes of a terminal illness. The Fed is desperate to come up with a new source of support.
Ummm…how about privatiziing social security? There’s some juicy funds there that we can give to Wall street to slake their glorious thirst. We’ll get it back someday, they promise.
Stuff to ponder to be sure. Nearly everyone who really thinks about this stuff agrees that the current “plan” to stabilize the economy is ill-concieved and half-baked. How will anyone value the toxic debt for it’s real value? Who will oversee the purchase of this stuff? How will the banks pay the US public back, and under what terms? Ummm..did anyone think to ask? It doesn’t appear so.
I fear for my daughter.
