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The Conspiracy That Is The Federal Reserve

September 3, 2010 by  

The Conspiracy That Is The Federal Reserve

How much money do you have in your wallet?

I’m not trying to be nosey. I want to make a very important point about what is wealth — and why what we call “dollars” have lost 80 percent of their purchasing power since I came kicking and screaming into the world.

Let’s begin today’s lesson by reading what a dollar bill says it is. On the front, under that heroic portrait of George Washington, you’ll see that what you’re holding is “one dollar.” Above and to the left it declares, “This note is legal tender for all debts, public and private.”

That seems pretty clear. It means that I can buy things with this smallish black-and-green piece of paper. And if I owe you any “money” for something, by law you must accept the equivalent amount of these “dollars” in payment.

But we still haven’t determined what a “dollar” is or what gives it any value. There are a bunch of other numbers and symbols on the front and back that we can ignore for today’s discussion. I’m not going to get into any Dan Brown mystical symbolism here. Not even to mention the Illuminati’s all-seeing eye on the back. Nope, let’s stick with the plain and simple words on the front. We’ll quickly learn that they aren’t so plain or simple after all.

Above the legal-tender phrase, in the largest type of all, it says “The United States of America.” That helps. Now we know we’re talking about a form of currency for this country, not Bratislava or Bangladesh.

Of all the words on our currency, however, the most important are the three at the very top: “Federal Reserve Note.” And here, as the mystery writers like to say, is where the plot thickens. What is the Federal Reserve? Why are its “notes” the mandatory legal currency of the U.S.? And probably the most important question of all, when it comes to you and me providing for our families today and in the future — why has the value of this monetary unit fallen so far and so fast?

The reality is pretty horrifying. Since the formation of the Federal Reserve in 1913, the purchasing power of the monetary unit it creates and controls has fallen by more than 90 percent. To put it another way, most things you could buy for “a dollar” back then will cost you at least 10 times more today.

You would think that after nearly a century of managing our money the masters at the Federal Reserve would have learned some lessons, wouldn’t you? But no, their record in the past decade isn’t any better than it was 90 years ago. Consider: 10 years ago, a “dollar” was worth 1/265th of an ounce of gold. That is, if you had 265 of the things, you could buy one ounce of the Midas metal.

Today an ounce of gold will cost you around 1,240 “dollars.” Has gold gone up 4.67 times in value in the past 10 years? No. I would argue that its “value” hasn’t changed at all; it’s just the price that has skyrocketed.

But no, that isn’t true, either. Gold hasn’t climbed 367 percent in price; rather, the U.S. dollar has dropped in value. When you think about it, it’s easy to understand why: When you produce more of anything, the price of each individual unit usually goes down. Produce an extra 10 trillion “dollars” and what happens to the value of each one? Think of dropping a rock from the top of the Empire State Building.

So with all of that as background, let’s now turn to the most important questions of all. What is the Federal Reserve and why has the value of its most important creation — the currency of the United States of America — fallen so much since it took over?

And here we come to an end to easy answers. I have less than 1,000 words left for today’s column. A friend of mine spent more than 20 years researching this subject and then wrote a 500-page book explaining what he discovered. The book is called The Creature from Jekyll Island and the author is G. Edward Griffin. If you are not familiar with the book or the author, you should be.

In fact, I’ll go further: I’ll argue that understanding what has been done to our money, and what it will take to make it sound once again, could be the most important issue our country will face in the next 50 years. Your life may not depend on the answer; but your quality of life surely does.

What is the Federal Reserve? Ed Griffin says the bottom line is that the Federal Reserve is a banking cartel. It was formed in secret, at a private meeting of the nation’s top bankers and financiers, far away from the glare of publicity such a meeting would receive in Washington, D.C., or New York City.

After the scheme was hatched it was then necessary to get it approved by Congress. The conspirators knew that if their role in the Fed’s creation became public there was no chance it would be approved. So they simply denied they had anything to do with it. In fact, a couple of them were selected to appear to oppose it.

The measure was presented to Congress as a way to control Wall Street bankers who were blamed for all of the country’s prior financial problems. The schemers told a gullible public they didn’t need no stinkin’ Federal Reserve. “Please don’t create a new agency to control us,” they begged. Talk about audacity!

Uncle Remus understood the ruse very well. “Please, Br’er Bear, puh-leeze don’t throw me into that briar patch.”

For more than 20 years the founders of the Federal Reserve lied about their participation in the plot. But once they knew they had gotten away with it, secrecy gave way to hubris. They started bragging about what they had done. They were actually proud of how they pulled the wool over the eyes of Congress and a trusting public. The details in Ed’s book of this duplicity will shock you. At least I hope they will.

I wish Daniel Webster, the early American statesman and Senator, had been around when they pulled off this stunt. He would have understood the machinations very well. “Of all the contrivances for cheating the laboring classes of mankind,” he wrote, “none has been more effective than that which deludes them with paper money.”

Want more? Here’s an exchange that hits a lot closer to home. It took place in 1941 when Representative Wright Patman (D-Texas) demanded that Marriner Eccles, the governor of the Federal Reserve System at the time, testify before the House Committee on Banking and Currency. Patman was the committee chairman and he wanted to know where the Federal Reserve got the money to purchase $2 billion worth of government bonds. That led to the following exchange:

ECCLES: We created it.
PATMAN: Out of what?
ECCLES: Out of the right to issue credit money.
PATMAN: And there is nothing behind it, is there, except our government’s credit?
ECCLES: That is what our money system is. If there were no debts in our money system, there wouldn’t be any money.

Back in 1941, $2 billion was a lot of money. But it’s a drop in the bucket, literally, compared to what the Federal Reserve has done recently. To put it in plain language, the Fed has consciously and deliberately engaged in the most massive financial fraud in history. Through the creation of literally trillions of dollars of debt it has saddled our children and our children’s children with astronomical financial obligations. I, for one, doubt if they will ever be paid.

For a while the money manipulators got away with it through the specious argument that “we owe it to ourselves.” No, we don’t. We owe it to every person and every government on earth that holds any form of U.S. debt, whether dollars or Treasury bills.

Through the creation of money and the resulting inflation of our currency the masters of the Federal Reserve have stolen trillions of dollars in wealth from us. The theft continues every hour of every day.

So what can we do about it? As every military vet knows, you can’t fight what you don’t understand. Before you can take effective action against the Fed you need to know the enemy.

Do yourself and your country a favor. The next time you use a dollar for anything, from a package of gum to a loaf of bread, pause for a moment and reflect on what it really is — a symbol of a 100-year-old conspiracy to seize your wealth.

Then vow to help stop it.

Until next time, keep some powder dry.

— Chip Wood

Chip Wood

is the geopolitical editor of PersonalLiberty.com. He is the founder of Soundview Publications, in Atlanta, where he was also the host of an award-winning radio talk show for many years. He was the publisher of several bestselling books, including Crisis Investing by Doug Casey, None Dare Call It Conspiracy by Gary Allen and Larry Abraham and The War on Gold by Anthony Sutton. Chip is well known on the investment conference circuit where he has served as Master of Ceremonies for FreedomFest, The New Orleans Investment Conference, Sovereign Society, and The Atlanta Investment Conference.

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  • Hflashman

    OK…stop the truck here. The two basic premeises of the article was bashing the Fed and the ‘loss’ of dollar value. Bashing the Fed is just like income taxes…a nice ‘hot’ topic to rile people and get the anger flowing for no purpose other than to lead the masses via emotion rather than intellect. The loss of dollar value is plain betting people are ignorant about how the capitalist system works.

    Our system depends upon consumer buying. To maximize that, the consumer has to be made to think buying tody saves money because items do not get cheaper. If they did think tomorrow it will be less cost … they won’t buy now, but will wait in anticipating a lower price tomorrow.

    Thus, inflation IS BUILT into the monetary model. Too much is bad, deflation is bad. But an annual inflation rate of 2-5% is shown in most economic models to be the optimal. But to say a dollar has 90% less value today than in 1913 is ludicrous and bordering on insane.

    What one can buy today as a ratio of earnings is close to identical to what one would be able to buy in 1913. The difference being today … at least before Reagan and the current GOP ideology began their 20 year war against it … is that we had a larger, more robust solid middle class.

    To say the dollar has “lost value” ? Ludicrous and downright bordering on deliberate misleading by avoiding the facts and theory of capitalist monetary policy.

    Chip’s advertisers must be needing to sell more gold …

    • Mark Are

      Your ignorance is typical of so many people that think they KNOW something that they do not know anything about. Your economic knowledge has to be based on See Dick Run…

      • Jim

        MARK..Bravo. I couldn’t have said it any better myself. This individual needs a history lesson and NOT the ones given in public schools (liars dens)…

        • Joe R.

          Jim and Mark are right on the mark (pun intened) about Hflashman, he must be a liberal Democrat. Notice that the last three letters of Democrat are rat. Runaway inflation is what ruined many countries after WW 1 and it is starting here thanks to Democrats.

          • Hflashman

            My commentary about inflation being a necessary component of a capitalist monetary system is not a “liberal” or ‘conservative’ view…it’s reality. The ratio’s of what on can buy versus earnings as being flat is also not a “liberal” or ‘conservative’ view. Again…it’s reality.

            Jeesh…

          • vicki

            Let us explore HFlashmans concepts. (Gotta keep this short)
            Basic economics. Econ 101. Supply/demand. This law affects EVERY POSSIBLE element of any economic system including “money”.

            I have an item I wish to sell. Hf has paper “dollars” The item I wish to sell is VERY rare. There are only 3 in the world.

            My Item
            Supply=3
            Demand=?

            HF dollars.
            Supply=(1913) some number (say 100)
            Demand=?

            As you see this is a non-trivial equation with 2 unknowns (3 actually)

            I feel my item is worth 1 dollar.
            HF and 99 other people are all wanting to buy the item.
            I will get my dollar and maybe more by getting HF to join with
            others to buy it for 3 dollars.

            If they go for it I will have 3% of the money supply. Not bad.

            Now to reality. Only HF wants it and is only willing to give me a penny. I sell it. At that instant in time the supply/demand ratio sets the value of that item at 1 penny.

            One instant later the demand becomes unknown again.

            ——————————————————
            Flash Forward to 2010

            My Item
            Supply=4 (yes we successfully created 1 more (wealth creation)
            Demand=?

            HF dollars.
            Supply=(2010) some number (say 1,000,000,000,000 (1 trillion))
            Demand=?

            So am I going to feel that my item is worth 1 dollar? Not even close
            I am going to want 10 billion dollars for my item. HFlashman has 1 (he bought it back in 1913). I have 1 (having made one more (Wealth creation) and someone else has the others.

            HF wants a second one. I am the only one interested in selling so the REAL supply is 1. HF and 99 others all want it. They all have had good luck with wealth creation and or money collection so they all have a lot more than 1 dollar each.

            In 1913 I sold one to HF for 1 penny (1/100 dollar) so I can reasonably guess that I can get at least 100 mill for it.)
            And cause there are really 99 other people with the money I do not sell it for 100m but for the full 10Billion.

            ——————————————————————

            The demand for my item went up. The supply of my item did not go up anywhere near as much as the demand for it. (1 in 1913, 100 people in 2010) The other part of the equation is the supply of dollars. It went up a LOT

            Supply of dollars up/demand for dollars went up even with supply (note I asked for 1/10 the total supply in 1913 and I asked for and got 1/10 the supply in 2010)

            The reason this is so hard to follow for most people including me is that the demand for dollars is based on how many folk want them whereas the demand for my item is easy to quantify. (1 buyer in 1913 and 100 in 2010.

            At the very least we can tell that a huge increase in the supply of dollars will mean each dollar will buy less of my item. The fact that dollars also are used to buy other items has dramatic effect on the “demand” for dollars.

            This was long. Hope someone makes it to the end of this.

          • CJ

            Vicki. Glad you brought up basic economics 101. Your first statement is false. My economics book said “the market” decides and when government gets involved (that means money) the market becomes imperfect. If you want to quote, you need to get it right. The ONLY job of the government in a market is to insure honesty of the participants.

          • Vicki

            CJ says:
            “Glad you brought up basic economics 101. Your first statement is false.”

            I am not sure to which statement you are referring.

            C.J.: “My economics book said “the market” decides and when government gets involved (that means money) the market becomes imperfect. If you want to quote, you need to get it right. The ONLY job of the government in a market is to insure honesty of the participants.”

            In this we agree however I was discussing Supply/Demand. It affects absolutely EVERY part of economy. Government can move to insure honesty of the participants or it can join in and change the supply/demand balance.

            Changes nothing in my assertion. Supply/demand affect EVERYTHING. Even the items used to “store value” or in the case of fiat paper not.

            The psychological principle would be the apparent value of the items on each side of the equation would affect the supply and demand for the item.

            If I have a large supply of dollars I would be willing to give you more of them for the item you have that I want. Meaning the apparent value of your item from my view compared to the items I have goes up. I.E. I am willing to part with more of my items (money) for one of your items cause I have a large supply of my items.

            When I am able to print money (as the fed does) the value of dollars rapidly approaches 0 and I am quite wiling to give you lots of dollars for that item.

            You will recognize this as (hyper)inflation. The value of your item has not changed. The value of my items has. That my items are paper dollars changes nothing in the supply / demand law.

          • Right Wing

            Vicki, nice accurate illustration. I think CJ may not have understood that supply and demand = “the market”. Perhaps he/she did not appreciate economics for dummies?

          • http://?? Joe H.

            CJ,
            how can the government insure the honesty of all participants when they themselves are dishonest, crooked, PIGS???

          • HFlashman

            Vicki;

            you stated Econ 101. When you take Econ 102 and above, you’ll learn something more than just the bare basics.

          • vicki

            HFlashman does a drive by posting by mentioning Econ 102 but fails to state what he learned in 102 and how 101 (Supply/demand) affects EVERYTHING. Even stuff in 102.

      • http://PersonalLibertyDigest Liberty

        Thank you Mark for a voice of both knowledge and reason.

        • Bus Gillespie

          I generally agree with Chip, but this time Flashman is right. Would you rather have congress regulating your money when they have to get re-elected every two years? Then we’d really see some inflation, check Argentina history for a case study. Secondly the Fed does operate as a private business with some government oversight which means it tends to operate on capitalistic principles which we conservatives agree with. And they are allowed to make a profit, but anything over 4% has to be turned back to the government and is used to pay down the debt.
          Paper money is a great invention, figuring out how to control it is the trick. The fact the U.S. is the industrial and monetary juggernaut of the world indicates that the Fed has done a fairly good job.

          • CJ

            Funny, I’ve never found hflashman to many ANY comment correctly. He’s running a nearly perfect record… of misinformation.

          • Ed

            First of all, the gov. should NOT be regulating the money supply – they, and the fed – are what got us here. IF our money was still tied to gold and silver, we would not be where we are today. Paper money was originally tied to gold and silver – hince the “certificates” early on, and the gold and silver coins. In 1880′s a good custom made suit cost about a 10 dollar gold coin – today that same suit costs about 800.00 dollars paper. A 10 dollar gold piece today is worth 750 -800 dollars.

          • ARN001

            Ed, im just curious, where did u get the 10 gold figure for a suit at that time in history…. c’mon.

        • FJE

          I have read many of these replies. Many are good in criticizing HF, but I have not seen any that address the problem of fractional banking and the creation of money out of thin air. Our system used to work well with low inflation, until we went off the gold standard. When we had a standard of gold worth $32, there was no inflation, but FDR changed that. He made gold worth $35 and created inflation instantly and lengthened the depression.
          The bottom line is that inflation can be kept under control with Congress controlling money as the Constitution demands, if we keep a fixed ration of gold to the dollar. Then the FED is not needed and we, the people, have more control over out economy. Supply and demand will work and inflation will not influence buying decisions.
          It may not be good for the socialism of our leaders or the rest of the world, but we will return to the economic powerhouse that we once were.

          • ARN001

            We the People dont have control over squat.

      • TIME

        Mark,
        I LMAO on your post. Thanks I needed that.
        Da Flashless has been here for a while making outlandish post.

        His post are just about the same as MSNBC.

        You Have a good weekend dude.

      • Wanda Murline

        The first thing is that the Federal Reserve is unconstitutionally printing money…that is a rule of law designated for the federal government only by the Constitution. Second, the Federal Reserve is a monopoly in that it has no competition, and this in itself, should be the reason for it’s dismantling since it is against the law to have a monopoly in America…think Bell Telephone and how it had to be broken up. Prior to and during the Federal Reserve…these elists banking coharts both American and foreign have been creating crises…that’s right from 1807 to 1873 to 1929 to, you guessed it, 2008. If you want to get the entire story of how the Federal Reserve has snuck into this country and taken over including refusing to be audited…get the DVD “The Power of the Purse” and get educated, it will make your blood boil … I had to take an extra blood pressure pill when I watched it…it tracks how certain people have manipulated over time since the late 1700′s to install a one world bank and they finally got it…the Federal Reserve…notice they don’t call it a bank? There is good reason for that also. Get the DVD. I know that the new SC candidate Greene is not much of a candidate, but in his last interview, he stated that he would break up the banks…I think he has something there…broken up, we would never again have to bail them out because they were “too big to fail”…nothing should be too big to fail, someone will pick them up if they fall and it should not have been the tax payers.

        • Anthony

          @ Wanda —
          Go to Google Videos, and search Federal Reserve.
          Or, look for the book: The Creature from Jekyll Island.
          Also – another video is: THE MONEY MASTERS

          Ths Hflashman character is a bait artist who must be going from one freedom-minded website to another riling folks. You notice he just says things are a certain way… he never provides proof to back it up. I’m sure it’s on his List of What He’s NOT Gonna Do.

          NOTE, Mr H — The FED has never paid any type of TAX since ints inception. And, from the time Timothy Geittner took charge of THE FED until he became Treasury Secretary… the FED went from 800 Billion, to over $2 Trillion in profits. And, never once did they ever pay any type of tax on those earnings… corporate nor income. Now a guy like you would probably applaud such nonsense. THE FED also does not abide by the Rule that used to exist in America where a Corporation had to PROVE how it would be beneficial… and the FED cannot do this as it charges INTEREST on our own currency that it LENDS TO US. Viewing any of the evidence I have provided on Google Videos or even on YouTube will bear out my comments.

          IF YOU DARE……

        • HFlashman

          Wanda…

          Raichie v. Federal Reserve Bank of New York

      • Hflashman

        OK…so you are stating here that economics classes are full of misinformation? Someone posted about runaway inflation…note I said that wasn’t good.

        But to state inflation is not a necessary component built into the capitalist monetary system is just being ignorant. No other way to describe it.

        Ask any economist what occurs if M3 is flat (and if you don’t know what M3 is…why are you trying to fake a learned opinion?)

        • Dr. Mabuse

          Flash, I have of question for you. Why did the Fed stop reporting on the actual amount contained in M3 in their annual reports? At the time (I believe it was some ten odd years ago) this was an unprecendted move. Yet it was glossed over and virtually ignored by the financial community at large. Any thoughts in this regard?

          • Hflashman

            My thoughts? It’s actually one of the reasons I am not a fan of Bernanke. They primed the economy to avoid a mild economic recession for political purposes. It was Bernanke’s payoff for the position. They stopped reporting M3 (to the public) and then immediately put an unprecedented amount of cash into the system over the course of 6 months … in effect artifically priming the pump. It acted to forestall the reckoning on the housing market. If you recall, it was at the same time the SEC allowed the banks to “mark to model” their MBS holdings instead of “mark to market”.

            I think the fix was in to try and maintain the appearance of a sound economy for the ’08 elections. It fell short and far worsened the situation when the inevitable bubble busrt occurred.

            I am not a fan of Bernanke.

        • Average Joe Patriot

          Hey, Flashman, I don’t know what the M3 is. Could you please tell me, so I will be as educated as you? I don’t mean what it used to be, I mean what it is now. Hmm. You can’t? Why is that?

          As for “inflation is good” (shades of Gordon Gekko) or somehow necessary because it is “built into the system,” tell me what brand of kool aid you’re drinking and I’ll order a case for my worst enemies. The “system” is clearly a vicious scam from the ground up. One needn’t chew and swallow the whole apple when one bite results in a mouthful of crawling worms. One can simply say: The apple is bad.

          Inflation, deflation, reflation, regulation, monetization, quantitative easing…a term which describes how you boil a frog…slowly…everyday exchange used to be a broad highway we all could walk on with our eyes shut. It has been twisted into a tightrope where even geniuses fear to tread. The balancing act which our current financial system requires to keep us all from falling would never even be necessary if we’d stayed on what was essentially a barter system based on valuable metals, goods, skills, labor and services.

          Too simple for you Flash? That’s probably what the money-changers argued when Jesus kicked their asses out of the temple.

          • Hflashman

            Before May ’08 I could have told you M3 data (or at least have a close educated guess based upon the data I had available). After the “crash’ and being rif’d, I haven’t that access. Sorry …

          • Anthony

            INFLATION is a result of the slanted Fractional Banking System used by THE FED.

            Flashman… would you care to elaborate?

        • CJ

          Hey flash, you would choose to use M3, where most of that is DEPOSITED and not being SPENT in the market.

          • Hflashman

            OK CJ … what’s the more accurate indicator of total capital in the system? Would it be err to think that deposited funds, or investment monies, are being used or are they just sitting around doing nothing but sitting?

        • Richard Pawley

          I can’t speak on all of this but if inflation was necessary how was the country able to get away with not having any to speak of from 1792 until the FED was established (while most congressmen went home for Christmas) in 1913)? Oh, there was some inflation during the war of 1812 and the War Between the States, but it always returned to normal and a five dollar gold piece would buy the same in 1850 as it would the year the FED was founded. We didn’t even need income tax until we had to begin paying the FED for the “privilege” of having them issue money. Thomas Jefferson considered a National Bank more dangerous that a standing army and now we know why. This article is even a little conservative because a dollar has lost MORE than 90% of it’s value since 1913. One of the definitions of money USED TO BE a store of value and those little coupons that say FEDERAL RESERVE NOTES are only a store of value for a few months at best. This is why the new money that is established after the dollars values falls to nothing (along with all the others paper currencies on earth) will be based on gold. It’a also why multi-billionaire George Soros has sold off most of his American stocks and purchased gold.

          • Hflashman

            Oh..I don’t know Pawley. What do you think the difference was in the economic model from the pre-Industrial and Expansion Eras versus the Industrial Era of a maturing nation? Jeesh ….

          • DaveH

            Duh, Flashman, we could both claim the technological advancements resulted from different factors, but what would that prove?
            FDR kept us in 10 years of Depression while instituting many of the policies that Liberals adore. Do some reading, Flashman, and I don’t mean from the Huffington Post or Dailykos:
            http://mises.org/rothbard/agd.pdf

        • Bob

          When hyperinflation hits all paper money is going to be worthless so all these theories are just that.

        • Mark

          Hflashman,
          I have never attended a course in economics, so please forgive my ignorance. You have stated (along with several others) that we have a
          “capitalist monetary system”.

          When exactly was this “capitalist system” established?

          It seems to me that prior to Karl Marx introducing the term “capitalist” ours was a Free Market system.

          Our nation was once a Republic with a free market system. It was never intended to be a Democracy with a capitalist system.

          When you understand this, you will understand what Chip is writing about.

      • DR. Mabuse

        Flash, you are way off base in your assessment of Chip Wood’s article.
        Essentially he’s correct in his reporting of facts about the Fed. If you care to delve a little deeper into the problem of the Fed., you might look at how the Fed Reserve Act was ushered in under the cloak of “darkness” during the Holiday recess of Congress. Also take note of the collusion between the Warburgs, Woodrow Wilson, Col House. and the House of Rothschild in perpetrating the fraud on the American people. Addtionally, you might ask yourself why there were two assasination attempts (by parties unknown,LOL) on Louis T. McFadden (Chairman of the House Banking Cmte.) Who was a staunch opponent of the Fed and its International banking affiliates. By the way the second attempt suceeded. This den of vipers need to be taken out to the nearest tree and summarily strung up. There are many more instances of malfeasance by the Fed too numerous to be listed here.
        Revisit your “facts” Flash, you might rethink your position on this question.
        Joe R. take you head out of your hind parts, the problem is more complex than conservatives vs liberals. Just as a minor footnote, you should take note that it was the “Conservatives” (Republicans) who aided and abetted the passage of the Fed Reserve Act.

      • Vippy

        We have now manipulated markets, e.g. read today’s article on Big Pharma paying off the competition so they don’t enter with a cheaper product. The oil markets no longer are driven by supply and demand as we are approaching a glut in the oil market and gas should be very cheap by now but it is not and even forecasted to be higher the rest of the year and next year. Puts all the pundits about peak oil to rest or should!

    • CLARENCE SWINNEY

      Thanks Bruce Eden good

      1% own 43% Total Financial Wealth
      25% individual Income
      42% stock market
      ———————————–
      1%=1,400,000 tax payers
      Since 1979 a 281% gain in Income
      Middle 20% got 25% gain

      1% got 60% Tax Cuts by Reagan and Bush

      America One Percenter Nation

      Bottom 80% own 7% Total Financial Wealth
      1% screaming we want it we earned it we are Gods Anointed.
      Privatize Social Security–Help our stock value.
      Privatize Medicare–Help our Health care stocks
      Medicaid–junk it–cut our durn taxe
      Food Stanps-let lazy indolents eat cake.Cut our taxes.
      Build more killing machines. Help our stocks
      Start more wars. Help our stocks.

      We are the leaders of this “CHRISTIAN” nation.
      We support the church with our donations . Can we help it if they are tax deductible.

      What is that noise coming out of the Heavens????
      Jesus Christ is screaming “You are not my children”.
      I care for the 80% who need help.
      I condemn to Hell the vulgar greedy Rich.
      They did not listen when I proclaimed–”It is easier for a camel to get through the Eye Of The Needle than a Rich Man to get into Heaven”

      Oh! What the xxxx ! They are only 1,400,000. No Big Deal Let em burn.

      clarenceswinney
      olduglymeanhonest disturbed

      • DaveH

        Ah, the politics of Envy. Where would Cuba be without them?
        We must achieve equality. Who cares if that equality will result in “equally poor”? Get those dastardly Rich people who took the risks (both personal and monetary), and who spent the longs hours learning and working that most of us won’t make the effort to do. Forget that they provide most of us with jobs.
        We should instead worship those Government leaders that take an increasing amount of our money each year. For What? Buying votes, padding their personal accounts, harrassing the businesses that drive our economy. Oh, yeah, they are worth their money. But only if you are in an ignorant self-interested stupor and don’t give a damn about the future of our children.

        • Marilyn

          Well put. Thank you!!

        • JeffH

          DaveH, This guy posts the same thing on a bunch of websites…relentless…just web search his name…

      • katie

        Someone always

      • vicki

        Perhaps this will help to understand the “Eye of the Needle”.

        http://www.eyeoftheneedle.net/Church%20Traditions/eye_of_a_needle.htm

      • Anthony

        Outed recently on NPR —

        Four of the TOP SIX BANKS in America have just under 70% of their money in Derivatives.

        The Wealth of America has become concentrated within these Six Banks and almost half has already been transferred to the Bank of England.

        Wealth is never destroyed, merely transferred.

        In the 1930′s during OUR depression, Germany was enjoying a boom, as THE FED was pumping up their economy with OUR money — this is easily verified.

    • Al Sieber

      Hf, read what happened to Germany in the early 1920′s, so you go along with “print” as much money as you want? I can’t out if you’re really that stupid, or like to play games, or work for the CIA.

      • DaveH

        He could read this. But it takes a minimum eigth grade education to understand it. That leaves Flash out:
        http://en.wikipedia.org/wiki/Hyperinflation

      • http://PersonalLibertyDigest Liberty

        Al, he’s probably a “plant” for the powers that be at the moment. Thank you for your comments.

        • Al Sieber

          Liberty, anytime, thanks for the support.

      • ceberw

        A couple of points:

        1. What happened in the Weimar Republic (Germany in the 1920s) was because of harsh reparations because they lost WWI, and the control of the money supply was in the hands of fiscal authorities. Having fiscal authorities control the money supply has always been a disaster.

        2. Since the inflation of the 1970s-1980s inflation has been in the range of 2-5%. This is essentially a tax on monetary holdings. Why would I worry about a 2-5% tax on my monetary holdings when I’m taxed over 30% on my income? Where I live, even sales taxes are at a higher rate than the inflation tax.

        • vicki

          (1). Is that not the point of Chip’s article. Having the Fed in charge of the money supply is just asking for (and getting) trouble.

          • ceberw

            The Fed has nothing to do with fiscal policy. It is the Congress (subject to the President’s veto power) that determines fiscal policy. The Fed determines monetary policy and regulates banking. Unlike Germany under the Weimar Republic, the Fed has some independence from the fiscal authorities. Following WWII, Germany, after its experience a quarter century earlier, formed the most independent central bank in the world. From time to time the fiscal authorities would ask the Bundesbank, and frequently they would say ‘no’ and do what they thought was right. In fact, measures of central bank independence have been shown to very accurately predict long-term inflation rates (“Central Bank Independence and Macroeconomic Performance” Journal of Money, Credit and Banking, May 1993, pp. 151-162).

          • Anthony

            @ ceberw —

            Your rationale is decided missing sheer & clear fact.

            THE FED decides monetary policy and hands that Policy back to Congress to implement. AND, it has been that way, since 1913.

        • DaveH

          CeberW,
          Inflation averaged more than 7% a year in the 70s. For the four years Carter was in office it averaged more than 8% a year. And Carter did nothing so dramatic as is currently happening under Obama.
          Yes, Government is spending a lion’s share of our money (37%), but you would willingly give up another 8% each year? Not I.

          • Vicki

            a house that sold for 38,000 in 1977 was sold for 115,000 in 1980. That is just a wee bit more than 7%.

            I think the same was true for gasoline for the carter years.

          • DaveH

            Vicky,
            There are always anomalies in any economy. I’m talking about inflation in general. I try to make a habit of not saying things that I can’t back up:
            http://inflationdata.com/Inflation/Inflation_Calculators/Inflation_Rate_Calculator.asp

          • DaveH

            And Vicki,
            I was quoting an average per year for the 4 year period. If you use the inflation calculator, you will see that from January 1976 to January 1980 the rate was 39.93%. To find what that would be average for each of the 4 years you would solve for the 4th root of 1.3993 and subtract 1. That would give you .087 or 8.7% average for each year.

          • ceberw

            DaveH: I don’t think it would change your result much, but if you want to look at inflation during the Carter administration, he was President from January 1977 through January 1981.

    • JRC

      I wish I had Chips address I would sent him a box of aluminum foil that I bought in a “”Dollar Store”"..he can make himself many hats out of it…it will help to prevent the FED to brainwash him into accepting the money of the US as what it is….you do realize the FED uses Zirkonian brain rays to control us don’t you? LMAO I wonder how much kickback he gets from promoting this ..”"lets scare and dumb down the US right book”". In his next installment he will tell you all to buy “”Gold”". I.T.S.H.T.F and the right gets they’re death wish of TEOTAWKI, gold will be worthless, you can’t eat it, its to heavy to haul, and you can not make any viable tools out of it to survive. I lol at all the sheep that get the wool pulled over they’re eyes every day with fear mongering and scare tactics just so a few of the rich get even richer.

      • Al Sieber

        Read the coinage act of 1792

        • Al Sieber

          JRC, I hope your “Gene” pool End’s with you, if not, the “Darwin” awards are coming up.

      • Mark Are

        History, when it comes to gold, proves that you are an idiot too.

      • DaveH

        I think the Fed must have allocated too many of those “Zirkonian brain rays” to JRC.
        Okay, we’ve heard from the name-calling, fact fabricating, condescending Liberal. Next.

      • rich

        unfortunatly Chip speaks the truth. I do hope you that one day you can allow yourself to look at the facts and the recorded history of how the Federal reserve came to be. As a thought starter let me ask you, if…Article 1, Section 8, Clause 5 of the US constitution grants only to Congress the power “To coin Money [and] regulate the Value thereof”, with no provision for such power to be delegated to any other group, why is Ben Bernake setting monetary policy? Is bernake employed by the US Governement or the private bank named the Federal Reserve? How does the federal reserve make money? Start there or continue to bury your head in the sand.

        • Don

          You may not like it, but can you imagine the boobs in Congress. most of whom have little knowledge of economics or finance arguing over what the money supply should be. Federal Reserve Notes are money substitutes rather than money. So, Congress does not have to get directly involved.

          • Bus Gillespie

            Go back to the 1870′s when Congress did control monetary policy and they decided that the exchange rate between gold and silver would be 16:1. They held to that for a couple of years (due to pressure from the silverites) while the real, market value of silver was slipping because of increased production…The result all the gold was being purchased from the government at bargain silver rates until the U.S. treasury was out of gold…Which the money system was based on at the time.

        • HFlashman

          Raichie v. Federal Reserve Bank of New York

      • DaveH

        What gets me about these Green-Eyed Liberals is that I have yet to hear any of them condemn the Rich Man George Soros. How did he get rich? Did he produce anything? No, he was a speculator, largely a currency speculator. He made his money on other peoples’ misfortune. Sometimes even reputedly causing a currency crash with his manipulations (England). But he supports the Liberals, so it’s hands off. They will turn a blind eye to any bad behavior that is exibited by their own.

        • DaveH

          I should point out that speculators don’t do well in stable markets. Could that be why he supports the Liberals?

    • DaveH

      Unbelievable. The Ignorant Flashman is going to tell us how capitalism works. Oh boy, I’m all ears. NOT!

      • Bob

        The plain fact is that when the Fed prints money it devalues the dollar. It doesn’t make much difference because our economy is finished. All those jobs being lost are not coming back. Supermarkets in NJ are closing because people can’t afford to buy like they used to. Our stupid legislators and governor are trying to save horseracing and the casinos but there isn’t enough money around anymore. I guess we’ll get another tax increase. I laugh because when the little guy loses his job nobody gives a crap.

        • Mark Are

          How can you devalue something that is worthless in the first place? The “dollar”, since the Fed took over has been based on the FAITH of the populace to use their toilet paper as well as the FORCE of those in power utilizing fiat money laws that enable the Fed to have the power it does over US. Since money, according to the Fed’s own definition, has to be durable, divisible and a STORE OF VALUE, Fed notes don’t even come close. Which is a store of value? If I purchased 100 ounces of gold in 1964, it would have cost 3,500 in fed notes. Today I can “cash” it in for about $125,000 in fed notes. If I had put those same 3,500 in fed notes in my mattress back in 1964 I would have LOST $121,500 in purchasing power if I pulled them out today. If I had put it in the bank in an interest bearing savings account I would have accumulated about $9,600 out of that $3500 from 1964 still leaving me with a deficit of close to 115,000 in purchasing power. Cars were about $3500 in 1964. Today they are about $30,000. SO I ask everyone…which lost purchasing power? Gold has HISTORICALLY been used for money because it is DURABLE, DIVISIBLE and has a STORE OF VALUE. I would be better off buying copper water pipe than putting “money” in the bank.

          I have a copy of a book sitting on my desk that I am going to destroy to put it on line as a PDF. It is called MONEY the GREATEST HOAX on Earth by Merrill Jenkins. He wrote it back in the early 70′s. And believe me..THAT BOOK will awaken you, that is if you have a brain, even more so than The Creature From Jekyll Island.

          When you run a funny money system that is based on the Ponzi scheme, it HAS to collapse eventually. there is no way around it. Once the peoples FAITH in the toilet paper wains, it is over.

          • http://PersonalLibertyDigest Liberty

            And another Thank You, Mark. Why many can’t figure the Ponzi Scheme out is beyond my understanding.

          • TIME

            Mark,
            Thank you yet again Dude, you are making my day better per your post.

            I have been yaking about most of what gets posted here for well over 35 years now and have been told how bloody “cray I am,” yet the one I still can’t get a grip on is; ” It can’t happen here!”
            Yea, that a bag of rice crispy treats will get you ZIP.

            My first real look at the outright EVIL we are facing now was in 1972 when I quit the SDS after being told that they really wanted to do as in; destroy the USA within 20 years.

            Since that point in time I have had my life threatened so many times I lost count, and thats just from the LEFT.
            And I have been really trying to wake people up that claim they are in the know, yet sound asleep at the wheel.

            Anyway, I am now much older gray and worn out.
            And the “end run” is here in the form of one Barry Soetoro.
            Now people have started to wake up, but saddly I don’t think its going to make any differance.

            Anyway Mark thank you again for a Great post, try and have a good weekend / Holiday.

          • J.C.

            Mark, the countdown will be marked by the events of today, leading to Oct 1, 2011 next year. On that day, all Fed member banks will no longer be required by the phone Fed. Reserve Act to have any ‘notes’ in their vaults. Check out the ‘Act’ yourself here (footnotes at the bottom of Sec. 19)

            http://www.federalreserve.gov/aboutthefed/section19.htm

            It is altogether possible that the transition of our U.S. ‘dollar’ will move to the IMF’s Special Drawing Right (SDR). Those at the World Bank might make a ‘killing’…hmmm poor choice of words?

          • Bus

            Mark, would you please send me all of your worthless paper dollars, I think I can use them to dupe a lot of people out of their goods and services.

          • http://?? Joe H.

            Bud,
            I will send you a hundred of my worthless fed dollars for every ounce of gold you send me!!! hell, Ill make it 200!!!

    • Bitter Libertarian

      Hflashman is an obvious protsitute. Anyone defending their pimp (the FED) is a prostitute.

      • Hflashman

        Hmmm..try reading comprehension classes. They may do you good. I never said anything about the Fed. Jeesh …. the truly ignorant are out in force today…

    • http://thetruthaboutminnsota.org Jim Paulson

      Hflashman,

      Just wait until the Fed has monetized more of the federal government’s debt. Then tell us how good the credit monetary system is. And after hyperinflation hits us, then tell us where all of the wealth of the American people has gone.

      But let’s not jump off a tall building just yet! Let’s try this: Repeal the legal tender laws (31USC5103) and see how well the Federal Reserve Notes do with free competition against silver, gold, etc. THEN, when the FRNs are no longer forced down our throat we will know what smart, thinking people prefer. And it won’t be Federal Reserve Notes.

      READ The Creature From Jekyll Island by G. Edward Griffin and End The Fed by Ron Paul.

      • 57girl

        Keep spreading the word, Jim. Maybe the people will come to realize what a den of thieves the Fed really is. Both of your recommendations are familiar to me, and well worth the time to watch/read.

      • J.C.

        Hey Jim…that didnt work out too well for JFK and his Silver Certificates….5mos later and we were all crying….

      • Carole Howell

        The value of the dollar has fallen so much in the last 10 years cause our national debt has risen. Our dollar is in trouble for sure.

      • Awakened

        Bravo, Jim!!

      • Hflashman

        Once again..another candidate for reading comprehension classes. please note where I said hyperinflation was good. Oops…I didn’t. I said too high of a rate of inflation was bad.

        Buffoonery is the norm here eh?

        • http://?? Joe H.

          No, flash-in-the-pan that would be Norm!!!

    • refuse2lose

      Would you like to explain why Bernanke and his clown posse,and even our own congress were hell bent on making sure we didn’t get to look at their books??? I mean,you seem to think that everything is above-board with the Federal Reserve,so what could they possibly gain by refusing us the RIGHT to see what the heck they are doing????

    • Average Joe

      Hflashman

      “Bashing the Fed is just like income taxes”.

      I realize that intelligence and critical thought are not two of your strong poits. So I will attempt to educate you about the second of your assersions…since you obviously don’t comprehend the first.

      First of all there are serious questions concerning the “ratification” of the 16th Amendment. Here is a list of sites that might shed some light on the issues…pick any or all and do some reading.
      http://www.bing.com/search?q=16th+amendment+ratification&form=MSNH14&qs=AS

      Next, a look into the IRS. I suggest everyone onr the site read this.
      http://www.supremelaw.org/sls/31answers.htm

      Hflashman, education is a wonderful thing to have…get some please.

      If we as a nation wish to change things in our country, my suggestion is to hit them where it really counts…int there wallets….If we do not agree with there policies, then we need to stop funding them…Just a thought.

      • Hflashman

        Wow … yet another crawls from the woodwork to claim the Income Tax is unConstitutional. I dunno…I’d say if the SCOTUS says it was legally ratified, I’d say the SCOTUS had more weight than an anti tax destroy our antion at all costs individual.

        • http://?? Joe H.

          Hey flash,
          If the SCOTUS says it’s legal to charge for the air we breath are you gonna go along with that as easy, too? The SCOTUS is not omnipitent!!!

          • HFlashman

            They may not be omnipotent. But they are the ultimate interpreters of the Constitution. Jeesh … her’s a hint. Marbury v. Madison

          • Anthony

            Marbury vs Madison was a John Marshall perversion of the Federal over the States when it came to power. Obviously Flashman has no choice but to generalize in order to (ahem) save face? He certainly doesn’t read what he posts. Like coming back two or three days later to see what it sounds like as if someone else wrote it. WOW

            Try reading HAMILTON’S CURSE, flashman…..

        • Average Joe

          Prove to me that it was properly ratified and I’ll buy it..until then you’re just blowing smoke up your own back side.

        • Average Joe

          Here’s a hint, even idf it was ratified (which it wasn’t in MHO)….
          BRUSHABER v. UNION PACIFIC R. CO., 240 U.S. 1 (1916)
          240 U.S. 1

          FRANK R. BRUSHABER, Appt.,
          v.
          UNION PACIFIC RAILROAD COMPANY.
          No. 140.

          Look it up and read it….it granted the congress : No new powers. If it couldn’t do it before, it can’t do it now.

    • 57girl

      You seriously should watch “The Money Masters” and then “Freedom to Fascism” before you comment on the Federal Reserve. Your comment displays your ignorance about how the monetary system works and at how badly we are being reamed by the PRIVATE bankers at the Federal Reserve. Then you might like to glance at our Constitution … start with Article 1, Section 8. And if that doesn’t wake you up, watch “The Creature from Jekyll Island”. All 3 clips can be found on YouTube. To read the Constitution, just google it. Aside from our Constitution (which they skim),this is stuff they don’t teach in school and the Government would probably rather you not realize.

      • J.C.

        A quick read of the founder’s Declaration should well up some emotions too. So many of the usurpations of yesteryear are occuring today.

        • Bus

          It was one of those founders, Alexander Hamilton that organized and got approved (by a bunch of other founders) the first Bank of the United States…In order to have some control over the money system.

    • Michael Small

      What the people do not know will destroy this nation. There is never any such thing as lack of knowledge to cure problems we face; especially with the FED and the IRS.

      1. We fought a Revolution to oust the British bankers. Why?
      2. We allowed the British Banking system in again after the war. ?
      3. Jefferson refused to sign their re-charter. Why?
      4. What was the threat from England because Jefferson refused to recharter their Banking system.
      5. Why is the private banking system Un Constitutional?

      Every time the British Bankers were thrown out, they were allowed back in. Why?

      Let me just give a few quotes from history:

      1. “My God! How little do my countryman know what precious blessings they are in possession of and which no other people on earth enjoy!” ~~Thomas Jefferson

      2. Allow me to issue and control the money of a nation, and I care not who writes the laws.” ~~Meyer Amschel Rothschild – 1828

      3. “Either the application for renewal of the Charter is granted or the United States will find itself in a most disastrous war.”~~British Warning
      —–Result: The War of 1812 with England

      4. “The dominion which the banking institutions have obtained over the mids of our citizens must be broken, or it will break us.” ~~ Thomas Jefferson

      5. “If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and the corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their father’s conquered. I believe that banking institution are more dangerous to our liberties than standing armies.. The issuing power should be taken from the banks and restored to the Government, to whom it properly belongs.” ~~Thomas Jefferson to John Tyler, 1816
      —–President James Madison gave the Bank of America another 20 years because of the cost of the war! Amazing, huh?

      —–President Andrew Jackson threw them out again, calling the bankers a den of vipers.

      6. “If the people only understood the rank injustice of our money and Banking system there would be a revolution before morning. By holding the citizens in dependence it would be more formidable and dangerous than the naval and military power of the enemy. ~~Andrew Jackson
      ——Jackson eliminated the bank during his presidency (abolished the Banks in 1832 and removed all US money. He paid off the national debt January 8, 1835 (without interest to an illegal and unconstitutional entity)

      The Death of President Abraham Lincoln:

      7. The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than monarch, more insolent than autocracy, more selfish than bureaucracy. I see i the near future a crisis approaching that unnerves me and caused me to tremble for the safety of my country.

      Corporations have been enthroned, an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by wroking upon the prejudices of the people until the wealth is aggregated in the hands of a few and the Republic is destroyed. I feel at the moment more anxiety for the safety of my country than ever before, even in the midst of war.”
      ~~President Abraham Lincoln

      8. Salmon P. Chase, Secretary of the Treasury 1861-64) under Lincoln, publicly stated: “My role in promoting the passage of the National Banking Act was the greatest financial mistake of my life. It has built upon a monopoly which affect every interest in the country. It should be repealed, but before that can be accomplished, the people will be arrayed on one side and the bankers on the other, in a contest such as we have never seen before in this country.”

      Why was Lincoln Assassinated:
      1862: The Times of London (the Rothschild Paper) publishes a story containing the following statement: “If that mischievous financial policy, which had its origin in the North American Republic during the late war in the country, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off its debs and be without debt. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.” ~~Meyer Amschel Rothschild

      1876 – The Bismark (German Chancellor) stated about Lincoln: “He obtained from Congress the right to borrow from the people by selling to it the bonds of States and the Government and the nation escaped the plots of the foreign financiers. They understood at once that the United States would escape their grip. “The Death of Lincoln was resolved upon.”

      Two other Presidents were Assassinated after Lincoln:
      “Whoever controls the mney of a nation controls that nation.”
      ~~James A. Garfield – Assassinated in 1881
      ~~William McKinley – Assassinated September 14, 1901 – Staunch advocate of the Gold Standard.

      Our World Changed:
      ~~Bank failure of 1905
      1. Promises by the bankers that if they controlled the money there would be no more bank failures
      2. Federal Reserve approved by Congress? (A handful or representatives met on Christmas eve when the rest were home for the holidays and passed this bill (1913
      3. Woodrow Wilson rides into office as President on the Bankers Ticket and signs the 16th Amendment as a thank you.

      —-The US Citizen is now a subject to the International Bankers: Taxes for the use of the money they earn that is rightfully theirs, but must pay interest for the use of that money!

      4. President Kennedy is assassinated: WHY?
      There must be a good reason to consider a President to be dangerous if there are considerations for his removal during office by such means.
      Kennedy signed Executive Order No. 11110. This gave the U. S. Treasury the power to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury. This meant that for every ounce of silver in the U. S. Treasury’s vault, the government could introduce new money into circulation. This gave the U. S. government back its power to issue currency while stripping the Federal Reserve’s power to loan money to the Government at interest. If enough of those silver certificates were to become into circulation, they would have eliminated the demand for Federal Reserve Notes. Executive Order No. 11110 was valid in 1980, but the authoritative basis for the Order was substantially nullified in 1982 with the passage of Public Law 97-258. Order 11110 was never directly reversed, but in 1987 Executive Order 12608 revoked that section that was added by Executive Order 11110 essentially nullifying it.

      Given the History of the International Banking Community, who do you believe was responsible for these Presidential Assassinations and WHY?

      The FED is Illegal (Unconstitutional) and should be eliminated NOW!

      Lord Acton – The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.

      John Adams – Banks have done more injury to the religion, morality, tranquility, prosperity and even wealth of the nation than they can have done or ever will do good.

      Aristotle – The trade of the petty usurer is hated with most reason; it makes a profit from currency itself, instead of making it from the process which currency was meant to serve.

      “The budget should be balanced, the treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.” ~~Cicero – 55 BC

      Tell me we should not talk down the FEDERAL RESERVE or the INTERNAL REVENUE SERVICE and I will ask if you believe in LIBERTY; in Freedom from tyranny.

      Is the FED Legal?
      “No State shall enter into any treaty, alliance or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make any thing by gold and silver coin in tender in payment of debts; pass any bill of attainder, expost facto law, or law impairing the obligation of contracts, or grant any title of nobility.” (Article 1, Section 10, US Constitution)

      Michael D. Small
      US Army (Retired), Vietnam Veteran
      Oath Keeper

      “It does not take a majority to prevail … but rather an irate, tireless minority, keen on setting brush-fires of freedom in the minds of men.” –Samuel Adams

      • CONSERVATIVE AT BIRTH

        Kudos to you Michael Small.

        • http://libertymind.wordpress.com Patriot1776

          Mr. Small,
          You are a true patriot! Thank you for your sacrafices, service and your obvious devotion to your oath. We need more men of your stock. I hope you had many children to carry on the torch of liberty. What you laid out before us was better than anything I could have said. I believe you hit the nail squarely on the head. The fight to keep our liberty has been against central bankers for a long time. As you displayed, our founders knew this, and died for the cause. And now we fight and die for the banks interests. Sad. But what upsets me most is that we are so busy fighting amongst ourselves over red vs. blue, right vs. left, Democrats vs. republicans, that we won’t allow ourselves to see the real enemy. I thank God for men like you maybe someday this Union will open its eye’s and throw off the chains of debt to a central bank and enjoy true liberty again. I don’t hold out much hope though. Regardless I will never give up the fight and neither should you!

      • http://?? Joe H.

        Michael Small,
        very informative post. A big part of it I knew, some I didn’t. welcome home, Brother!

      • Anthony

        Cudos, Michael… (salute)

      • BrotherPatriot

        I could never present such a well rounded, eloquent, insightfull comment…even if I tried for the rest of my life. Pure Truth.

        Wonderfully written, sir. From one former soldier to another…I salute you and your work, Brother. Thank you.

        T.D.

    • http://www.webresourcesolutions.com Bill

      Hflashman,

      I don’t like to name-call in comments on blog sites, and am not in this case, only stating a fact – you are truly ignorant.

      But, don’t feel bad – most people are when it comes to money. They don’t teach it in school. In fact, the key flaw in our monetary system isn’t even taught in college economics courses. Which brings me to a small criticism of the article. It doesn’t get to the heart of the issue.

      And that is, our money is all based on debt. Since 1863 and the passage of the National Bank Act, we operate a Fractional Reserve banking system. This means that Banks are entitled to lend money they don’t have – they conjure it from thin air.

      We also have, since 1913, a Private Central Bank, from whom we borrow, at interest, every dollar in existence.

      It isn’t even the the fact that we have a fiat currency – a well manage fiat system can work as well as a metal based one. Better in fact, if you happen to be poor in the metal upon which that system is based.

      In using current MO, every time a bond is floated my the federal government, we go deeper into debt. But, without debt, there would be no money!

      People believe the Fed operates on the public’s behalf. It does not. It is neither Federal, nor has it any reserves. It is operated by private banks, the list of which is secret and last came to light in the mid-80′s.

      This is why the spiral of borrowing will never cease, not until we reform our banking system and rid ourselves of a private central bank. The problem is easily unlocked in a simple mathematical formula – P/P+I or Principle/Principle+Interest.

      If its not a conspiracy, then ask yourself, why is it a secret? Well, actually, its not. Its just that, when one points out that private investors earn on the basis of every dollar we print, you are shouted down as a “conspiracy nut” or the drivel contained in your post. Yes, inflation IS built into the system, using the formula I detailed above. BUT IT DOESN’T HAVE TO BE.

      If congress takes back its constitutional privilege to coin our own money, rather than borrow it, that built in inflation is eliminated. Paraphrasing T. Edison, if the Govt’s good for a bond, its good for a bill. Think about this – next year, total service on the debt will exceed total personal income tax revenue.

      And the answer, as put forth by Milton Friedman is so simple, it staggers the mind. Have congress issue US Money, use it it to retire the debt, and, to prevent this from being inflationary, move banks to 100% reserves, gradually, over a short time period. The fix the money supply at that level and raise it only to keep pace with population.

      The Act to accomplish this have even been drafted, and supported by economists such Friedman:

      http://www.themoneymasters.com/wp-content/uploads/2009/11/Monetary_reform_act_pdf2.pdf

      • HFlashman

        I’m familiar with the theory Bill. And it has merit. One problem…the disruption to the system would either destroy it or result in a period of monetary instability the likes which are unknown except that thyey will shake the entire systm to its core.

        Folks here will cheer for it…because few will take the time to study the ramifications and apply it to thier lives. Heck…I’d venture within days of the beginning of the disruption and instability, most here will wail and cry because they got what they’ve asked for and cheered for…and within months they’ll be demanding the creation of a “strict’ form of government to ally their fears and lead them to safety..and thus will end the Great Experiment.

        just as an example…on one hand they’re demanding a weaker federal government..yet on the other hand without flinhing they demand a private property owner’s right to use thier property be taken away…because they don’t like the use planned (i.e. NYC mosque). On one hand they cry because they see a persecution of christianity, yet on the other they cheer when a locality turns down a building permit because it will house a religion center (the number of mosques being denied use permits for no reason). And a favorite of mine? Cheering on Ariz. law which permits tossing in jail anyone…anyone…not packing citizenship papers, yet moaning and wailing about the power and control of government (doesn’t matter state or federal…they are actually cheering that a government entity has taken the power to have everyone pack ID papers!). Oh oh and how about this one … They criticize this admin for stepping up and saving untold hundreds of thousands of jobs for example bailing out the auto industry when credit disappeared (and which we will make money from)..then without pause criticizing the admi for not saving jobs!

        In theory..with an informed and understanding and willing populace…I’d say it may work. But with the rabble of the TP makeup and the obvious willingness to not think as this group displays time and again? I’ll let someone else handle the issue. I don’t want to live in a complete dictatorship that the wacked political and religious right will demand because they are too cowardly to Man Up.

        • Anthony

          THIS…. is coward talk… plain & simple.

          When this Country was founded.. people weren’t so quick to cave in, as you obviously are.

    • http://legalinvestigations.com/blog MIke Knight

      You’re going on the assumption that we’re living in a transparent capitalist economy when in fact it’s a corrupt corporatist economy cloaked in false capitalism.

    • Karolyn

      Actually, Chip is selling his friend’s book.

      • Al Sieber

        Karolyn, his book sells itself, go back to sleep.

    • Bruce D.

      Hflashman I actually never heard that viewpoint before. It does make some sense. But you are always blaming big business for all the problems. Why do you not blame the FED as it is one of the most corrupt businesses in the world. Ron Paul can’t even audit their books they are so powerful. They issue our money with no oversight. Why would you condone such a thing??

      • HFlashman

        The Fed is an instrument. Who controls the Fed? Big Corporate America. Why blame the Fed ? –
        Example..a thug uses a gun. Should we blame the gun or the thug? If John Wayne controlled the gun, it becomes a good thing. Same concept.

        • Anthony

          COMPLETELY BASS-ACKWARDS…. PERIOD.

          Corporations need funding – it comes from THE FED

          IT ALWAYS BEGINS WITH WHO CONTROLS “THE MONEY”…. ALWAYS ! ! !

          • HFlashman

            Anthony….you said exaxctly what I said…I used Big Corporate America to include Big Oil and the mega corporations. Our premise is the same. The Fed is a tool….it’s who controls the tool which is important.

    • Paul

      Sounds like flashman must work for the Fed and is protecting his interest. It is interesting that he supports anything that is in the process of tearing our country apart … at least the country that was based on our Constitution. Seems, though, anytime any president of recent years make an effort to do something about the Fed … the end up dead or shot. JFK wanted to go back to the gold standard … shot. Robert Kennedy was of similar ilk and shot. Ronald Reagan had ideas about the Fed and was shot and later national debt increased tremendously … all to the Feds advantage. So Chip be careful.

    • REYKOOL

      HFLASHMAN SEEMS PRETTY IGNORANT AND IS CONFUSING “CAPITALISM” (DEAD A LONG TIME AGO) WITH “CORPORATISM” WHICH PRIVATIZE PROFIT AND SOCIALIZE LOST..
      CAPITALISM WAS CREATED AND DESIGNED TO FUNCTION UNDER A BARTER SYTEM WHICH WAS DESTROYED A LONG TIME AGO…WE ARE NOW UNDER A FIAT MONEY SYSTEM BORN OUT OF THE FEDERAL RESERVE (A BANKING SCAM ) NOT BASED ON “CAPITAL” BUT ON DEBT…
      DO YOU KNOW WHAT “FRACTIONAL RESERVE BANKING” IS ? THAT IS HOW OUR MONEY IS REALLY CREATED….THE FEDERAL RESERVE “MONETIZE” DEBT WITH FIAT MONEY CREATED OUT OF THIN AIR AND BY INFLATING ARTIFICIALLY THE MONEY SUPPLY THE CURRENCY LOOSES ITS VALUE , THE PRICES ARE NOT GOING UP THE CURRENCY IS LOOSING PURCHASING POWER…THIS IS THE REAL CAUSE OF “INFLATION” IF ALL THE DEBTS EXISTING WERE PAID, NOT A DIME WOULD BE AVAILABLE…DEAR HFLASHMAN.
      I SUGGEST HFLASHMAN TO READ THE GRACE COMMISSION REPORT (COMMISSION CREATED BY RONALD REAGAN) PUBLISHED BY MACMILLAN PUBLISHING COMPANY AND ALSO AVAILABLE ON GOOGLE HERE I QUOTE THE CONCLUSION :
      “THIS REPORT PROVES THAT NONE OF THE PERSONAL INCOME TAX GOES TO PAY FOR ANY GOVERNMENT SERVICES AND IS USED TO PAY ONLY THE INTEREST ON THE NATIONAL DEBT”.
      AND THIS IS WHERE MOST OF OUR NATIONAL DEBT COME FROM , NO MATTER WHO IS ELECTED AND NO MATTER HOW MUCH WE BUY AND SELL PRODUCT AND SERVICES….
      THE FEDERAL RESERVE A CARTEL OF PRIVATE BANKS (BY LAW) GETS TO PRODUCE THE $ 100 BILL (OR OTHERS $1 $10 $20 ) for 4 CENTS AND THEN SELLS THE $ 100 BILL (FEDERAL RESERVE NOTE) TO OUR U.S GOVERNMENT FOR $ 100 FACE AMOUNT, HOW DOES OUR GOVERNMENT BUY THESE FEDERAL RESERVE NOTES (DOLLAR BILLS) IT PAYS FOR THEM WITH DEBT: TREASURY BONDS, TREASURY NOTES AND TREASURY BILLS. YOU CAN READ OR SEE ON TV OUR MEDIA SAY THINGS LIKE ; THE FED INJECTED LIQUIDITY INTO THE MARKET OR THE FED IS BUYING GOVERNMENT SECURITIES…ALL THIS MEANS IS THAT THE FEDERAL RESERVE IS LITERALLY CREATING MONEY OUT OF THIN AIR AND THEN SELLING THIS MONEY TO OUR GOVERNMENT FOR ITS FACE AMOUNT ….THIS IS THE TRUE SOURCE OF OUR NATIONAL DEBT AND THIS IS THE REASON OUR DEBT NEVER GOES DOWN. THE FEDERAL INCOME TAX AND FEDERAL RESERVE WERE CREATED IN THE SAME YEAR (1913) ALMOST IN THE SAME TIME…BECAUSE THE INCOME TAX WAS CREATED TO FINANCE THE FEDERAL RESERVE…
      NOW A QUESTION FOR THE BIG GENIUS WHO THINK HE KNOWS ABOUT ‘CAPITALISM”
      HOW ABOUT HAVING OUR TREASURE DEPARTMENT ISSUING THESE BILLS FOR A COST OF 4 CENTS WITHOUT USING THE SERVICES OF A CARTEL OF PRIVATE BANKS WHO IS PRETENDING ACTING AS A GOVERNMENT AGENCY CALL THE FEDERAL RESERVE, ELIMINATING THE COST AND THE NEED FOR AN INDIVIDUAL FEDERAL INCOME TAX….BEFORE 1913 OUR COUNTRY WAS FUNCTIONING WITHOUT AN INCOME TAX AND OF COURSE WITHOUT A CENTRAL BANK USING A “GOVERNMENT AGENCY SOUNDING” MISLEADING NAME “FEDERAL RESERVE”.
      CHECK GOOGLE : “THE FINANCIAL MESS – THE REAL DEAL” BY MICHAEL MITROSKY
      “THE CREATURE FROM JEKYLL ISLAND” BY G EDWARD GRIFFIN
      AND GET RID OF YOUR OLD 8 TH GRADE SCHOOL BOOKS ON “CAPITALISM” HFLASHMAN

      • http://?? Joe H.

        REYKOOL,
        Your Cap lock is on!!! Very few here will read a post in caps!! It’s hard on the eyes!!!

        • REYKOOL

          SORRY JOE H….I knew my caps was on but I left it on anyway I will try to be a good boy next time..
          Peace !

    • Viktor Leben

      HFlashman,

      Our mixed economy (capitalist/socialist) currency value is based on how much the citizenry is worth. How productive is the citizen, and how much can we tax him without the citizen dieing. The “real assets” are the assets that can be confiscated by the government thru taxes. The citizen sells his “product” or “service” to someone else and pay his taxes with the aprroved currency.

      With the removal of industrial base (machinery) the citizenry is worth less – from the upper class to the lower classes. Less Factories = More Physical Labor to maintain the same standard of Living. When Physical labor reaches it’s maximum capacity, the citizenry borrows money and so does the government. This type of borrowing (less machines, more physical labor) leads to assets like Gold going up in price. Physical Labor alone cannot maintain a 300,000,000 population in a 1950′s like lifestyle. When the machines/factories are mostly gone and the people can’t borrow any more money (because they can’t pay it back) the government revenues go down. The government starts borrowing money. If the citizenry is broke, the government reaches it’s limit ..then people start starving. There’s is no more money. The government has confiscated most of the wealth and the system breaks down …

      So government is the problem. Cut back government spending (and go back on a gold/silver/platinum backed currency) and everything will be OK … More confidence in your currency ! Smaller government = more machines. More machines = More Wealth …

      • HFlashman

        I wasn’t disagreeing with you until the end. I may not agree with some of what you stated..but it’s worthy of thought. Here’s where your ideological premises differs from mine. I see the use of government not to promote a cause…but to defend the populace against abuses of the wealthy and powerful. And yes..to an extent to tweak the system to encourage future planning of infrastructure, energy bases, and social justice.

        What has occurred in the past 30 years is the taking of government control by the wealhty and corporate powers and applying those governmental controls on us for their benefit and entrenching their rule. It began in esence with th ‘Nam War…and accelerated to a high speed fast track with Reagan (damn that administration)…culminating in the crisis we face today.

        And what do the easily led want? Why….weaken the government to allow complete control by the wealthy and corporate interests ! Not the reasonale sound way…i.e. taking back control of the government to fight those interests.. nope…they aren’t being told that’s good (and not wondering or looking to see who is telling them to think that way).

        Jeesh …

        • Anthony

          YOU… are a constant contradiction to yourself.

          GO BACK AND READ ALL OF YOUR POSTS, then re-read this one….

          As you say …. GEEEESH

        • Viktor Leben

          Hflashman,

          Corporate fascism… I see where you are coming from. The Tea Party may successfully shrink the size of government, but at the same time decrease the peoples protection from currently entrenched corporate fascists.

          Good Point Hflashman. I learned something today. So the corp fascists coulld be bankrolling the conservative backlash ? Interesting hypothesis !!!

    • ARN001

      The actuall buying power of our dollar has lost 80% since i was born–go figure…

    • Lincoln Carter

      People will spend their whole lives working to make money but won’t spend 10 hours reading to understand what’s been done to OUR MONEY. The Creature from Jekyll Island is the best 1st read, then get Web of Debt by Ellen Brown – google ‘Money Trust’ and read a bit on that. Then go look at inflation rates when silver and gold was used as money in this country (there were long periods of time when there was no inflation) and compare those periods to the time after the Federal Reserve Act was passed in 1913. You will be amazed at what you didn’t know prior to reading about the history of money in the US.

  • Bruce Eden

    The problem is that everyone is missing the entire exercise here. It’s the taxes, stupid! Demand that government cut taxes by 75% and our problems (read: and our government) goes away. Initiate a one-time 20% flat tax with no “sundown provision” and no ability to be ever increased. Eliminate all other taxes of the tax fraud that is part of the Federal Reserve (IRS is its debt collection agency) and you will see prosperity unlike anything in the history of the world. Elimination of taxes, through exposure by investigating every level of government through their comprehensive annual financial reports (CAFRs) will expose that the government is hiding money “in plain sight” by moving the shells of their domestic and international investments.

    Want to get rid of the purported budget “deficit” (which is a contrived fraud by the Federal Reserve and government), read on:

    There is no need for property taxes, period! Collective government since 2001 now brings the largest percentage of their gross income from domestic and international investment return. Where does government get the money for these investments? From you and I–the taxpayers! And, they keep getting it under the guise of “budget deficit” and increasing taxes to meet the budget. There is no budget deficit! A complete and true audit of ALL government domestic and international investments through auditing state, county and municipal comprehensive annual financial reports (CAFRs) will show that these layers of government always have “available unreserved, undesignated spending fund ending balances” at the end of each fiscal year. In other words, this is unreserved, undesignated CASH that government has for the so-called “rainy day”. At least 70-75% of ending balance cash funds of the budget are always available for spending at the state’s “discretion” before they can even think about raising any taxes, including property taxes.
    There are differences between the “cost-expense-service” sections of budget reports and the “profit-investment-money generating” sections, which are being kept separate from the incomplete tax-payer budget reports given to the public. These budget numbers “don’t add up,” even if that budget is our own government’s. The (CAFR) is proof of the fact that governments are for-profit corporations that collectively own – through controlling stock investments – all significant Fortune 500 and other corporations, and which do not represent the people, but only corporate interests. With trillions of dollars in collective government investments for all state, county, city, local and federal governments around the country hidden in plain sight, our society should be free from any taxation.
    Exposing these domestic and international investments, along with the governmental funds ending balances can eliminate any and ALL taxation with the application of what can be called “Tax Retirement Fund” application. This will immediately cause an influx of revenue to the government as well as a massive injection of cash into the private sector economy which will jump start massive consumer spending and immediate full employment (not the months or years government fraudulently tells you).

    • CLARENCE SWINNEY

      Bruce Edan
      20% Flat Tax no no
      The book years ago said 23% would cover our budget Yes. At that time.

      12,000 Total National Income
      20%=2400
      Budget 3800
      Chinese love it let us have 1400.

    • Christin

      Chip thanks for the great article. I never really understood the facade called the FED, but you have shed much light upon the subject. I will have to do more research. Griffin’s book sounds good. It is a shame the “game” has been played so long on the American people by such evil men. America could have been great as set up by the Founding Fathers who were spiritually connected to our Lord Almighty, but not by the dark hearts of these men and those that continue to keep it going.

      Most American people are good and have many have done great things, but gov after gov have worked against us all for such a long time. Do we have enough courage and strength to take back our country from those that wish us ill?

      Bruce E,
      Great post. Looks like all respective gov leaders have been in on the deception of the FED. You state that we could get out of this financial recession with growth in jobs and income by eliminating the Taxes which the gov doesn’t need, but I think you know “they” have put us in this place by design.

    • Mark Are

      This is an article I wrote for “Strike The Root” a number of years ago on the subject of taxes…it is called A Dirty Little Secret About Federal Taxes

      Someone tell me where it is WRONG…

      The other day I read an article about a woman who is refusing to pay Federal income taxes because the taxes are being used to buy weapons to kill innocent people in Iraq.

      Almost every day we read something about how our ‘taxes’ are being used for some idiotic or immoral act. We have all heard about the $500 hammers that the government has paid for with your taxes. We have heard about all the wasted money on all sorts of studies that just don’t make sense. Well, let’s take a close look at reality, folks!

      First, let me ask you a question.

      If I were a counterfeiter who was SO GOOD at applying my trade that NO ONE was able to tell I was counterfeiting, would I ever need to go to work to buy a new printing press? More ink? More paper? Pave the road in front of my house? Buy a tank? Obviously, the answer would be no. Because if I could print up all the money I wanted and no one could tell, I could literally buy up anything I wanted as long as I had the amount needed printed for the purchase. Unfortunately for us–the pawns in the global game of chess that is being played with our future, and the future of our children and even our grandchildren–that is exactly how it actually works.

      Once upon a time there were these pretty smart white guys who put together a rather interesting limited government that was supposed to guarantee freedom for the folks living under it. For all intents and purposes, it worked pretty well for a number of years. It wasn’t perfect, as the men who put this together weren’t perfect, but it was probably the best form of government ever devised by man in written history.

      I don’t know if there was that much more oxygen in the atmosphere or what, but the village idiot of that time seemed to be a lot smarter than the likes of our current Emperor George. If you read the writings of Thomas Paine, Thomas Jefferson, Benjamin Franklin, John Locke, James Madison, Samuel Adams, Daniel Webster, William Blackstone, Frederic Bastiat and Lysander Spooner, just to name a few, you will find that they were well educated and presented their ideas of what they believed would work using their REASON, logic, and common sense. One such man was Judge Roger Sherman.

      Roger Sherman spent most of his life as a businessman back in the time of the Revolutionary War era. He had some rather bad dealings due to the monetary system that existed in the colonies previous to the revolution and the drafting of the U. S. Constitution. Since he was a well known individual being versed on economics, he was influential in the drafting of the monetary clauses of the U.S. Constitution. Previously he wrote a booklet, which was the fastest way to disseminate information in that day. Booklets or pamphlets were very instrumental in driving the force of men’s thoughts towards succeeding from their unfortunate bond to England . Roger Sherman was no exception. His booklet A Caveat Against Injustice, or an Inquiry into The Evils of a Fluctuating Medium Of Exchange was instrumental in causing people to realize the evils of a fiat paper money system at that time in history.

      Unfortunately, the sheep have allowed the wolves to guard them via the public education (indoctrination) system here in the United States and elsewhere, so the truth has been effectively kept out of their minds.

      Let us look at what Roger Sherman did. He was the man instrumental for two sections of the U.S. Constitution. They are Article 1, Section 8, which states: ‘The Congress shall have Power to coin money, regulate the value thereof, and of foreign Coin, and fix the Standards of Weights and Measures’; and Section 10, which orders that: ‘No State shall . . . make any Thing but gold and silver Coin a Tender in Payment of Debts.’

      Why did he do this? Because he realized that if the monetary control was placed in the hands of the PEOPLE, there would be freedom and prosperity. He had dealt with the system of paper money that was in place in the 13 colonies and suffered firsthand because of the way it was used for theft. There could be no inflation and no theft of the people’s earnings and savings due to a dishonest paper fiat debt monetary system if only gold and silver coin were to be allowed in circulation. It was also one of the ways of control the PEOPLE could maintain by the withdrawal of their support by holding back their taxes from the state or federal governments if those governments seemed intent on trampling their rights as free men. Without the tax support to pay for wars, there would be no war. Without the tax support to pay for the Gestapo, there would be no Gestapo. Who is going to work for free? If the monetary control is placed in the hands of the bankers or the central government, the people basically have lost that control since they would not have that leverage. Up until the war for Southern Independence (or the War Between the States), gold and silver coins were used for trade and commerce. There were bank notes issued, but they were all backed AT PAR with the denomination stated on the note. If you were audited and found to have less gold in your vaults than you had bank notes in circulation, you were tried as a thief. Abraham Lincoln, who was noted for violating the Constitution in many instances, started the paper money scheme to finance the Northern aggression against the South. Knowing what I do know about that man, I cannot for the life of me figure out why he wasn’t tried by the people for treason and hung.

      Looking at the information above, can you see what has happened? Since the banking cartel has been able to completely control, via the U.S. Treasury and through Federal complicity, the current monetary system, YOU COULD LITERALLY KEEP ALL OF YOUR TAXES and it wouldn’t make a hill of beans difference. As a matter of FACT, if no one in the country paid Federal taxes at all but the public continued to believe that the little, colorful pieces of paper in circulation had value, everything would go on as it does now. The roads would be built, the missiles would fly, the soldiers would be paid and the Homeland Security Gestapo would be still receiving paychecks. Why? Because the COUNTERFEITER can print all the paper money or make all the book entries they want. Why? Because the people lost track of THEIR contract with their public servants known as the U.S. Constitution, and didn’t realize that they were being ROYALLY SCREWED.

      So here we are about 150 years after the War Between the States and what do we have? A monetary system that is antithetical to the U.S. Constitution and the rules laid down by Judge Roger Sherman. It is a system of theft that has continued and will continue until enough people make waves and cause a change.

      Now let’s take a look at what others have said:

      “When plunder has become a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it.” ~ Frederic Bastiat in “The Law”

      “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” ~ 1980 Annual Report, Federal Reserve Bank of Richmond, p. 6

      Isn’t confiscation of the wealth of the citizens a nice way of saying STEALING?

      “All the paper money issued today is Federal Reserve notes. The real backing for the nation’s money is faith in the strength, soundness and stability of the American economy.” ~ The Hats the Federal Reserve Wears, FRB of Philadelphia, p. 4

      Faith is what backs our monetary system. YOUR faith. Do you still have faith?

      “The Federal Government, with the cooperation of the Federal Reserve, has the inherent power to create money–almost any amount of it.” ~ The National Debt, Federal Reserve Bank of Philadelphia, p. 8

      ALMOST? Why only ALMOST? What keeps them from printing ALL they want? You? Me? Your dog? A full moon?

      “Whenever the legislators endeavor to take away and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any further obedience.” ~ John Locke (1690)

      If the money you earn has no value and you are forced through fiat paper legislation to take it for your labor, are you not having your property (labor) destroyed and are you not being reduced to nothing but slavery? Is not the state at war with the people?

      How about this:

      Public schools [i.e. government schools'the Communist Manifest's 10th plank] in which students learn to exchange labor and production [assets] for checks and banknotes [liabilities]–all ‘dollars’ of which were created, at no cost, in a government-protected bank.

      “A check is just a bit of paper, but you’re happy to have it.” ~ The Hats the Federal Reserve Wears, Federal Reserve Bank of Philadelphia, p. 5

      Confidence in ‘credit’ is furthered by taxation. In fact, governments go to great lengths collecting far less of ‘it’ than they spend–to sustain an aura of value.

      “If . . . government refrains from regulation [e.g., taxes] . . . the worthlessness of the money becomes apparent, and the fraud upon the public can be concealed no longer.” ~ The Economic Consequences of the Peace, John Maynard Keynes, p. 225 [February 1920 edition]

      Taxes do not pay for government which sanctions a credit system–but they are necessary to sustain the confidence in those devices by which the public IS taxed.

      “. . . Keynes argues that inflation is a ‘method of taxation’ which the government uses to ‘secure the command over real resources, resources just as real as those obtained by [ordinary] taxation.’ ‘What is raised by printing notes,’ he writes, ‘is just as much taken from the public as is a beer duty or an income tax.’ ” ~ 1980 Annual Report, Federal Reserve Bank of Richmond, p. 10

      For instance . . . say a man earned $3,500 in 1964 and put it in his mattress. Another man earned $3,500 and put it in the bank. Another earned $3,500 and traded it for gold coins. At the time, that would have been $35 Federal Reserve Notes per ounce, or the equivalent of 100 $50 US Liberty coins. In 2005, the first man will have the same $3,500 in Fed Notes. They would be worth about 1/10 of what they were in 1964. He would have effectively had $31,500 worth of purchasing power STOLEN from him. What did Lenin say in a quote above? Remember, a new car in 1964 was $3,500 in Federal Reserve Notes. A new, full-sized decent car today is about $35,000. The second man would have about $9,000 in Federal Reserve Note value with interest accrued. He would have effectively had $21,000 in purchasing power STOLEN from him. The last man could trade his gold coins and would have $35,000 in Federal Reserve Note purchasing power. So WHICH lost value? The GOLD or the PAPER?

      So what does this all sum up to? That TAXES are there for the PURPOSE of STEALING the labor of the people and to make them THINK they are supporting the government.

      Mayer Amschel Rothchild is quoted as having said, “Let me issue and control a nation’s money and I care not who writes the laws.”

      When the money is nothing but paper created on a printing press with absolutely no control from the people, the people become slaves to the creators of the money. When the people create the money with their labor (gold and silver), then and only then can the people be free. As long as we are under a debt fiat monetary system and refuse to enforce the law of the land via Article 1, Section 10 on our STATES, the Federal government will be in control of our very lives from the point that your birth certificate is placed into interstate commerce as a pledge against your life and your future ability to be a taxpaying slave on the plantation.

      So what is the answer? What would happen if the people of just ONE COUNTY in ONE STATE came together and they refused to pay property taxes or any form of tax or any payment at all unless they did so in gold or silver coin? Everything the state requires us to pay for from driver licenses to property tax to license plates is supposed to be paid for with gold and silver coin. This could be done. But will we have enough guts to try it? Start trading in your Federal Reserve Notes for 1/10 ounce, ‘ ounce, ‘ ounce and 1 ounce gold coins. Start using them with friends and neighbors by buying and selling with gold. Figure out a fair exchange rate and start using them. If you are making $50 in Federal Reserve notes an hour today as a plumber offer, your rate at $5.00 in gold coin. That will also help people see the disparity between the worthless paper and gold.

      How hard is it to get this through our heads? TAXES on the NATIONAL LEVEL pay for NOTHING. They are there for the purpose of CONTROL and to take purchasing power away from the slaves so they cannot compete as much for goods and services in the marketplace. In another words, it helps to control inflation, even though every piece of paper backed by nothing is pure inflation. On the local level, since the states and cities don’t print their own money, they need taxes. The taxes they are supposed to be collecting are supposed to be in gold or silver coin. The states were supposed to keep the federal government bound to an honest monetary system by forcing them to COIN money and regulate the value thereof.

      In summary, the rules (Constitution) say that we should be using GOLD AND SILVER COIN instead of fiat paper money issued with no backing except the faith that it will purchase and pay for services and goods in the marketplace. The taxes we pay at the national level are there to make us THINK we are supporting the ‘government’ or paying for those $500 hammers. The only way back to an HONEST monetary system is for the people to trade in their Federal Reserve Notes for gold and silver coin and then force the states to force the federal government to COIN money and regulate the value thereof. What are the states and cities going to do? Confiscate EVERYONE’S homes and property if we refuse to pay with F.R.A.U.D. (Federal Reserve Accounting Unit Devices) paper anymore? It would be a Miracle on Main Street.

      On a final note, according to F. Tupper Saussy:

      The absence of rebuke is taken to mean the people consent to the disobedience. Jim Woods, who wrote the Foreword to Miracle On Main Street, was a brilliant inventor for whom intellectual and personal freedom were tools of his trade. To Jim, Article I Sections 8 and 10 of the Constitution were the linchpin that held the whole American apparatus together. Keep the linchpin in place and the apparatus can run forever. Remove it and everything falls apart.

      So now you know why everything is falling apart.

      References:

      A Caveat Against Injustice by Judge Roger Sherman

      Theocratic vs. Democratic Money by Bruce G. McCarthy

      Miracle On Main Street by Frederick Tupper Saussy

      The Law by Frederic Bastiat

      A Plea For the Constitution of the United States Wounded in the House of Its Guardians by John Bancroft

      The Got Rocks Bank of America by Richard Kelley Hoskins

      The Wild and Free Pigs of the Okefenokee Swamp by George Gordon

      • TIME

        Mark, Dude again Thank YOU!
        I mean really I am so bloody happy to see that Dave, Jeff, Jo, Angle, Kate, Al, Mike, all of us have a great ally in you.

      • Christin

        Mark, very informative post.

        So how does the gov pay for all their outrageous spending if they don’t need our FED TAX money? Do they just print what they want and inflate/deflate the dollar?
        The States need to TAX because they can’t print and the state taxes go for programs the individual state legislators deem necessary.

        So are we able as a group or helpless to abolish the FED and IRS?

        If so many have known so much about this for so long why haven’t they exposed the lies to bring about change and back to the Laws set up in the Constitution?

        • 57girl

          If you google executive order 11110, you’ll find that JFK began issuing Silver Certificates minted directly by the United States Government in 1963. These Certificates were supposed to have phased out the Federal Reserve note. Of course we all know what what happened to John Kennedy and even though the order remained on the books, no other President since Kennedy has had the spine to enforce it. The Federal Reserve consists of some of the richest people in the world. And with that wealth comes power. Our advantage is that there are a lot more of us than them, and they are only successful if we remain ignorant as to how they operate. Once the people become informed (I suggest you watch “The Money Masters”) , I suspect there will either be a Revolution to remedy our Nation’s ills, or enough Patriots will run for office to make a difference. The rest of us have to be smart enough to vote them in. In the meantime, once you become aware of how the Fed operates, keep spreading the word. With knowledge, come power.

          • Mark Are

            I am CONVINCED that JFK was murdered because of the United States Notes (no interest) he put into circulation. He and Bobby were going after the criminals in the Fed and they had to do something to stop him. And since they have the money creating ability, they have the ability to pay for the best assassins in the world…CIA.

          • Christin

            Thanks 57girl and Mark Are,
            I am stunned and disppointed what I am learning about our gov going way back to WW and FDR, is it. So is America not so great or is it really a great nation full of good Americans AND Anti-Americans who joined forces with the foreign wealthy evil killer Elites who won’t let go of our country?

            So no one will touch this topic because it is lethal… then we will not be able to get rid of it. Sounds like an awful lot of people sold their soul to the devil.

        • Mark Are

          Yes, they just print it up and yes, the “states” need some form of taxation to fund it’s mostly useless self too. But the Founders knew that paper money was a problem so they made it so the States were NOT to use anything but gold and silver for debt payments. Which would keep the money power in the hands of the PEOPLE rather than a select few individuals.

      • LimestoneFreedom

        Great article, Mark. I found Miracle on Main Street 30 years ago and thought it was right, but no one listens. Maybe people will listen and start voting for candidates that pledge to fight all this mess of the last 97 years!

      • Average Joe

        Thank you sir for a well thought out and articulated post.
        I have tried over the years with a similar line of reasoning to convey this very message (using the cost of a Corvette in 1960 vs buying a new Corvette today),using FRN’s vs gold. Unfortunately the majority of people have been so brainwashed by the education system(indoctrination/propaganda machine), that it just goes right over their heads…and of course I hear that I am an idiot,moron, take off your tin foil hat kind of a guy… as a result of their inability to comprehend the true nature of the current monetary system in this country.

        Again, thank you so much!

      • Greg

        Very good post! Thank you Mark! I have been aware of these truths for at least 30 years, but there has been no organization of descent and purpose! Now that Obama is going to have a “kill” switch on internet/cell phone use, he will effectively prevent electronic organization of any party that tries to lead a rebellion…much more effective than the ability of any dictator in history to control the population! They have it and we don’t! I am not trying to scare anyone, this is a present fact of life, whether you agree or not! The only thing that could level the playing field would be an EMP! I say, “Wake up America! Demand Constitutional leaders!”

    • 57girl

      If we abolished the Federal Reserve, we could also abolish the IRS, which would cut out income taxes altogether. The only reason it was founded was to collect money from the people to pay interest on those private counterfeit dollars that keep rolling off of that magical- handy-dandy printing press the PRIVATE Federal Reserve operates. Seems to me, that would be the place to start cutting taxes. Then without a bottomless money supply we’d have to bring our troops home, thus saving billions more. And if we took it even further, and lived within our Constitution we could secede from the UN, CFR, and Tri-Lateral Commissions which would turn us back into the Sovereign Nation we were born to be. Of course NAFTA would have to go too. And Sovereignty does not mean Isolation. We can still trade with other Nations.

    • Michael Small

      A mans home is his castle! The promise of Liberty! Yet, we are burdened with an unfair tax to support our Police, Fire and Education of our youth. This is the responsibility of every citizen, but the vast majority are not property owners (they rent), thus a minority pay for the majority (social welfare) forced on us by Government that has been and is irresponsible, tyrannical, and dangerous to our Sovereignty, our Liberty and our Freedom.

      Yet is it the people who are not savvy enough to figure out that the first priority is to eliminate all debt and remain solvent; thus cutting the noose from around our necks, but WHO and HOW MANY practice CAPiTIALISM today? How many understand what Free Enterprise / Free Market means to the average citizen if they should educate themselves from ignorance and remember that as Benjamin Franklin stated, “we are each responsible for our own wealth!” This simply means we are also equally responsible for our own debt.

      Should we remove the Bankers noose from around our necks by the creation of new wealth and the circulation of that new wealth, then we shall be back on the road to prosperity and have the power to remove the unnecessary government restrictions that have been placed upon all of us. It is OUR FAULT! Simply because,
      1. We don’t want to
      2. It is not for me
      3. I don’t need anything
      4. Isn’t that one of those illegal . . . etc…

      We are all (Rich and Poor) on the same sinking ship and it seems we don’t really care if it flounders in this sea of debt.

      Michael D. Small
      US Army (Retired) Vietnam Veteran
      Oath keeper

    • Michael Small

      Agreed on all points and it is important to understand the workings of government but at the same time, it seems logical to get people educated in the world of FREE / ENTERPRISE and FREE / MARKET opportunities that pay off personal debt. At the same time educate people as to placing 50% or better of their earnings in Gold/Silver.

      While fighting to change government, at the same time re reduce the need for government social programs that are extremely costly; i.e. social security, health care, social welfare.

      A wealthy nation is healthy nation. Debt is our prime problem and the FED is our prime concern. All else, falls into place as we take up our personal responsibilities of self preservation through mutual cooperation and education of the public.

      But who listens! Everyone is too busy worrying about the government and spending little attention on their own personal needs. That is an avenue to self destruction simply because we can change the faces of congress by replacing them with constitutionalists but it does not reduce debt and that is what is sinking this ship.

  • Nina

    Thank you Mr. Wood. I have had many concerns regarding the “FED” and will check out Mr. Griffin’s book for explanations.

    • JRC

      Yeah, don’t forget to mention Promotion code “”Chip Woods”" so he gets his rightful kickback for this shameless promotion of this piece of crap book that you can find cheaper in Ollie’s bargain bin …probably for about a dollar….and that’s a waste of money right there….

      • Al Sieber

        JRC, what are they paying ignorant “Trolls” like you to spew your venom?

        • Bitter Libertarian

          JRC is a protsitute defending their pimp (the FED).

      • Mark Are

        And then of course, folks like JRC, have to dictate what to have be read to and have their thoughts written by someone else because they can’t read, due to GOOBERMENT school indoctrination. So JRC, have you READ the Creature from Jekyll Island? Or do you just prefer to go through life with your head stuck up your…well you know.

      • http://libertymind.wordpress.com Patriot1776

        JRC,
        I once thought as you do and at the same time claimed to be open minded. I was a moron. I am not ashamed to admit that because I really did not have an intelligent set of parents or an education in anything other than the government cocoon called public schools and then a extra dose of stupidity given to me in college. But, as I grew older I stated to question the “facts” given to me by those I had trusted. I began to be a critical thinker. You can do this as well. But you must question weather or not you are right about something first. It’s ok to be wrong. Unless you never question it.

  • Al Sieber

    Thanks Chip, I read the book and passed it on. I also get Mr. Griffin’s news letter “unfiltered news”. Aaron Russo’s DVD “America: Freedom To Fascism” is excellent also. I believe the dollar ( Fed. Note) has the buying power of 3 cents since 1913.

  • s c

    There are some basic points in the Fed question, and “some” people go out of their way to ignore the topic.
    The Fed should not exist. The Fed has more power than the government. Uncle Scam, in effect, WORKS for the Fed. The prez WORKS for the Fed ‘head.’ The Fed is a PRIVATE CORPORATION. It should be viewed as WORSE than a terrorist.
    People who support the Fed think ‘anything goes,’ as long as their leaders don’t give them a reason to have doubts about it. Fed jock straps don’t know squat about the Fed, but in their world they see this flaw as an asset. Even the fact that the Fed runs away from an audit like a vampire fears the light, Fed backers walk around with their pants down around their ankles, daring to think they can combine retardation with “intelligence” and get away wih it.
    Wake up. See the Fed for what it is and what it does. Freedom and the Fed are diametric opposites. America, you’ve had far too long to learn what you need to know. Wake up, or get used to being a slave in a world where freedom no longer exists. You’ve been warned – again. DO YOU CARE?

    • Disgusted

      The Federal Reserve is the oldest and most successful PONZI scheme. They control the government and I think the president as well. But – now that they have been in existence for almost 100 years and have more wealth and power than any entity in probably the world – how do you suggest we stop them? What are we going to do about it? Our political representatives don’t listen to what we want, they do as they please. What are our options at this point?

      • Bob

        If you follow the money it all leads to London and the Rothschild empire.

        • TIME

          Barry Soetoro JR, your first post where your brain is almost working. Good for you BUBBA.

      • http://PersonalLibertyDigest Liberty

        Disgusted – One of the major obstacles to returning to a sound monetary system is the fact most of our elected leaders lack the basic intelligence to understand how the Federal Reserve System actually works. The very few that do understand it, and aren’t attempting to make any “CHANGE WE COULD REALLY BELIEVE IN”, are nothing less than evil.

      • Mark Are

        All it would take to remove their power is for we the people to refuse to use their money and start using gold and silver as we did before and that is the end of their control.

        • Michael Small

          Yes,Mark but the majority of the people are broke. They have no money to invest in gold or silver. Yet, they have the potential, thanks to USA Opportunities to develop wealth, but again, their minds are closed as all they know how to do is complain about how bad things are, or they are in love with their government. I have always wondered why we call Happy Hour, Happy Hour simply because “ain’t nobody ever happy there!

        • vicki

          The part about the fed reserve note being legal tender makes it rather hard to refuse to accept payment for debt in that form.

          Of course gentleman’s agreements would work but it would require both parties to stay “moral”

    • Al Sieber

      SC, I care, but trying to get people to understand what it’s all about is next to impossible. I’ve “burned” hundreds of DVDs on the subject and handed them out, very few got it. but, if you reach just person it could have a impact.

    • Christin

      You are right sc, the FED is unconstitutional and should not exist. I think some people tried to bring it to the attention of we the people, but certainly not enough. Maybe their lives were threatened or eliminated. Most Congressional Republicans this year have backed a bill to AUDIT THE FED, but of course, the demo marxists voted against it. This is not a demo-repub thing just and American thing.

      The FED is kind of a undiscussed topic and so most of Americans don’t know what it does or why it’s really there. It’s time to TALK about it on every news outlet and make documentaries to bring forth attention, discussion and light onto the subject to inform the people… then we may have a chance of getting something done. Left quiet and untouched as a topic of discussion it will stay and grow as it has done.

      But we MUST talk about it, educate Americans and bring about awareness so nation-wide support can be had don’t you think?

  • CLARENCE SWINNEY

    8500 Bailout not 700
    BAILOUT
    Kathleen Pender San Francisco Chronicle
    11-26-2008—Bailout hits 8500 Billion
    Most of the money is going into loans or loan guarantees, asset purchases or stock investments on which the government could see some return.
    President Obama has been blamed for most of this. Incorrect.

    These are 2008 actions:

    March 11—Fed put up (200B) in loans to banks and investment houses and let them put up “risky” mortgage-backed securities as collateral.
    March 16—Fed gave JP Morgan Chase a (29B) loan as part of it’s purchase of Bear Stearns.
    July 30-President Bush signs Housing Bill for (300B) in new loan authority to back cheaper mortgages for troubled homeowners.
    Sept 7—Treasury takeover troubled Fannie and Freddie. Placed into conservator ship and pledging (200B) to back their assets.
    Sept 16—Fed injects (85B) into AIG.
    Sept. 16—Fed pumps (70B) into the nation’s financial system to help ease credit stresses.
    Sept 19—Treasury guarantees money market funds against losses of up to (50B)
    Oct 3——President Bush signs (700B) Bailout. Sec. Treasury Paulson says the money will be used
    to buy distressed mortgage-related securities from banks. ???
    Oct 6—–Fed increases short- term loan program boosting short-term lending to banks by (150B)
    Oct 8—–Fed lends AIG (37.8B) bringing their total to (123B)
    Oct 14—-Treasury says it will use (250B) of the (700B) to inject capital into the banks with (125B) provided to nine of the largest banks.
    Oct 14—-FDIC temporarily guarantees a total of (1400B) in loans between banks
    Oct 21—-Fed provides up to (540B) in financing to provide liquidity to money market mutual funds
    Nov 10—-Treasury and Fed replace the two loans provided to AIG with a (150B) aid package that includes an infusion of (40B) from the Bailout Fund.
    Nov 12—–Treasury says it will not buy distressed mortgage-related assets as previously announced instead will concentrate on injecting capital into banks
    Nov 17—-Treasury will provide (33.6B) into capital to another 21 banks. So far this is (158.6B) in 30 banks.
    Sunday—-Treasury will invest (20B) in Citigroup on top of (25B) provided on Oct 14.
    The Treasury, Fed and FDIC pledge to backstop large losses Citigroup might absorb on (300B) in real estate-related assets
    Tuesday—-Fed will purchase up to (600B) more in mortgage-related assets and will lend up to (200B) to the holders of securities backed by various types of consumer loans.

    Email Kathleen Pender at kpender@sfchronicle.com
    sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/11./2

    olduglymeanhonest
    too xxxx disgusted to comment

    9-2-10 Bailout now at 14,000.

    • Bob

      The socalled housing bubble was another Ponzi scheme. It was planned to steal more money.

    • Marilyn

      Obama was a Senator. Lest we forget.

      • Michael Small

        Yes, and I can’t forget that none of us really know who he is, but we are learning what he stands for.

  • joe

    sometimes i think the libs have readers of these columns that are paid to offer up baseless counter comments. surely readers who think could not come up with such stupid responses. chip, i enjoy your articles, you are dead on. i guess you know that you are in dangerous territory here. these people will do whatever to shut you up. keep up the good work.

    • JRC

      This was not an article, it was a shameless promotion of a book that was a big flop…

      • Al Sieber

        JRC, it must be great to live in Mom’s garage gobbling “Moon pies” all day and washing them down with RC Cola’s, too much sugar warped your mind “boy”.

        • Bob

          Al, JRC knows exactly what he’s saying. He’s a plant to try to confuse the people on this site. Every website has them. They’re not hard to spot.

          • Al Sieber

            You’re right Bob, but, I’ve run into people this stupid before.

          • JRC

            hey Bob, How about a short exercise? Take of your conspiracy and right wing blinders, switch on your brain and think….aww common you can do it even with that pea brain of yours..there must be some spark of independent thinking somewhere…common at least try.

          • vicki

            Ad Hominium attacks. So easy to spot a liberal (/wave JRC).

          • HFlashman

            A plant? Because there are sane and rational people who are telling the facts and to tell you you’re wacked? that makes them a plant? Wow ….you see any black helicopters lately?

        • Mark Are

          Its the high fructose corn syrup. It didn’t warp his mind…IT ERASED IT.

          • Al Sieber

            Mark Are, that corn syrup is bad news.

        • http://PersonalLibertyDigest Liberty

          Al – The excess of sugar ingested was mixed into double doses of “Liberal Kool-Aid”; causes delusions and damage to brain tissue.

          • Al Sieber

            Liberty, that “Kool Ade” might of had LSD in it, cyanide would be too permanent.

      • Bitter Libertarian

        JRC is an obvious protsitute. Anyone defending their pimp (the FED) is a prostitute.

        • JRC

          still better then a brainwashed mindless sheep with the wool being pulled over the eyes by Chip and his minders….A prostitute at least knows how to think, you just know how to mindlessly spout out and regurgitate like a parrot what you are fed by the people leading you to the slaughter house..

          • TIME

            JRC,
            Give it a break Bubba, your dead wrong as well you have zero clue about anything going on as per the tone of your post. Talk about brainwashed please take a look in your mirror, ok now you can clearly see what Brainwashed looks like. Its YOU!

          • Bitter Libertarian

            Clearly you are Blind, deaf, and know nothing of History. Sooo sad.. another prostitute with an STD (Statist Transfusion Disorder.)

          • Mark Are

            You are IN the slaughterhouse JRC.

          • Al Sieber

            JRC, what are you a pimp? all this talk about prostitutes, sounds like someone is paying you good for your lies. a prostitute doesn’t always sell sex.

          • Bob

            Jrc How do you know how much of the sories on this site I really believe. I am still able to think for myself.

          • Al Sieber

            Damn straight Bob.

  • charles golembewski

    Hey flashman,

    ” But an annual inflation rate of 2-5% is shown in most economic models to be the optimal. But to say a dollar has 90% less value today than in 1913 is ludicrous and bordering on insane.

    What one can buy today as a ratio of earnings is close to identical to what one would be able to buy in 1913. ”

    One slightly big problem you overlooked – Inflation steals from the saver.Especially when the interest on savings is basically zero as it now is. Also, If one is retired and there are no ” earnings to go up ” you eventually lose your home to the tax collector and then starve to death. Thank you very much FED, may I have another ?

    Where does that fit fit into your “economic / theoretical model ” ? And lastly, optimal fro whom – the people working on Welfare St. ooops I meant Wallfare ST. ooooops oh well, you know what I mean.

    What actually is ludicrous and insane is giving a banking cartel the authority to print our money. Ask any ten year old who has ever played MONOPOLY, if you let the banker have as much money as he wants, he will always win !!! Show me where this has not proven to be true in the real world ? I am very confident that if I could legally print money I would be on easy street as well. Anybody doubt this.

    Ludicrous and insane – indeed !!

    • Mark Are

      Mayer Amschel Rothchild is quoted as having said, “Let me issue and control a nation’s money and I care not who writes the laws.”

      • Awakened

        OMG. Chilling. Thanks for the reminder, Mark.

      • Al Sieber

        Mark Are, actually it started before Christ,then with the “Money Changers” in the temple, it’s the same people.

    • HFlashman

      Didn’t touch on saving because I thought such was obvious…the system is not geared towards saving wealth…it’s geared to create incentive to use and spend capital, not save it.

  • CLARENCE SWINNEY

    When will we get a President and Congress who will not be bought by WSA?
    Goldman has 48 employees who were former high ranking officials in our government. NYT reported that in first month as Treasury Secretary Geithner made 127 calls to the Goldman offices.

    Paulson a Disgrace. Sky is falling.Need 700B
    Yes! Help his Hedge Fund and pals on WSA.
    Multi-billionaire CEO of Goldman.
    Owner of billion dollar Hedge Fund.
    Culprit in fine of 555 Million(4% of 2009 profit) on Goldman.
    Goldman let him cherry pick Mortgages and he chose worst then went to America’s Largest Gambling Casino and bet AIG on them losing.

    When will we stop this Big Time Gambling???

    NO VALUE ADDED.

    clarenceswinney
    olduglymeanhonest

  • CLARENCE SWINNEY

    Bush created 31,000 Net new jobs. Lowest since Hoover.
    WSA used Investors money and Deposit money to GAMBLE.

    In past that money was used to invest in new industries, new businesses, expand current business and create JOBS.

    The slow down in Velocity of money was obvious.
    One party used money to bet another party.
    Money exchanged between two entities not hundreds.
    Derivative Gamblign must be stopped or we are in dire trouble as a nation. No Value Aadded. None.

    We are being suckered by WSA ultra rich who want all our wealth

    Ten years ago the business stock market Dow was 11,720.
    It is now just over 10,000.
    Yet! In 30 years Billionaire number grew from 10 to 403.
    1% Income grew by 281%. Middle class income grew by 25%.

    olduglymeanhonest

    • Mark Are

      The only legitimate way to “create jobs” is for the private sector to do so. If the gooberment creates jobs, all the jobs are useless non service and non productive jobs that are simply glorified welfare recipients. We could ALL have jobs if the gooberment wants to give them to us. And we can ALL have money because they can print all they want.
      They figured out that a draft wouldn’t work so they print money and BRIBE the young folks into becoming mercenaries for the bankers and PSYCHOPATHS running the show.

  • simon wade

    Your use of a pseudo quote from Eccles from the Goons demonstrates you casual malicious indifference to their ethos and that of Spike Milligan. Such ignorance suggests that Economics 101 would be your friend before you blather away in the future.

    Oh and BTW, the largest period of inflation in US history was during the ’70s, brought by the first oil shock which was instigated by our friends at AOPEC. (History of Economics 101, would also be a good place to start here) and the pulling out of the US from the Bretton Woods agreement which pegged the US dollar to he gold standard. The Federal reserve had noting to do with it. Of course we could have taken the hint and put our efforts into energy independence and alternative energy forms such as fusion energy, which, had we done the work would have diffused the power of the Middle East, removed our incentive to embark on the catastrophic adventure in Iraq (I and II) and Kuwait and prevented 911 from happening, but unfortunately a sequence of assholes, I’m sure they are your favorites, including Nixon, Reagan, Bush I, Clinton and Bush II killed all such efforts. So here we are, refuting the bile from dumb asses like you who were once mercifully contained, simmering in the basement with your stash of beer, large screen TV and pictures of the next Bambi you hoped to take a pot shot at, but now the internet has democratically given you a place to vent.

    Don’t preach to us about inflation, Wood. Stick to something within your grasp, home economics for example.

  • Bitter Libertarian

    Anyone bashing Chip here is sorry to say..Clueless.

    You need to read History, this is not conspiracy Theory this is 100% Conspiracy fact.

    Call it whatever you want bottom line is that the FEd is a Private bank that is owned by OUTSIDERS, NON US CITIZENS. Prove me worng..you cannot buy stock of this bank yet its privately owned.

    They VICIOUSLY defend their ability to control YOUR money..DUH…

    To anyone who does not believe, shame on you..to those who defend or wish to divert attention away to taxes, or whatever, wake up or preferably go drop dead you are part of the problem not part of the solution.

  • http://gmail i41

    hflash aka am lb, have never devuliged if they are just welfare rats, couch lizards, government workers, amd why they ;ive off their moma. Everyone knows they are socialist mircale butt babies. More worthless than a ripped pocket on a shirt. They probably got their great under standing of finacinal systems from their favorite”UNcle Blarney”, any thing called government control makes them tingley, especially if the cross bred maxist muslim mule puts the shine on them.

    • Karolyn

      Boy, 141. you get worse by the day! I’m still prayin’ for ya.

      • Al Sieber

        Karolyn, it’s i41, put down the crack pipe and pay attention.

  • http://www.gunthorp,com Gardner Behrends

    Jefferson feared a central bank that could, by inflation and deflation, rob the citizens of their property. Andrew Jackson said his greatest accomplishment was getting rid of the bank, the Rothschild cartel that was, and still is, gaining control of the world’s wealth and power. The banksters manipulated the markets to crash, blamed the traders, and stealthily got the Fed Act passed. The nail in our coffin was driven when the cartel persuaded Nixon to take the dollar off the gold standard, and the money printing presses went into full swindle. Now they need to arrange another profitable war to change our focus, exhaust us, and condition us to their peaceful, socialistic, world order. So many of us have forgotten what the revolutionary patriots would carve into their powder horns, “Liberty and Property, or Death.”

    • http://PersonalLibertyDigest Liberty

      Many thanks Gardner……………………all true.

  • Doug Harrison

    How can you say the dollar has lost value when we don’t buy remotely the same basket of goods. I got a great deal in 1975 when I bought a computer with 1 MB of core and 1 MB of storage for ONLY $150,000. (It would have cost 10 times that much 10 years earlier.) Now you can’t get one that small but you can get one 100 times as good for $399.

    I bought a car in 1975 for 7000$. It spewed pollution and left me stuck when it broke down at least twice a year. (You can pick up the same quality today for $7000 on any used car lot.) Modern cars are wonderful by comparison.

    The CPI is meaningless over a long period of time because we don’t buy the same stuff. I don’t have the same phone I had 40 years ago. I don’t have the same shoes I had 40 years ago. I don’t wear polyester any more. It smells. I would guess that 5% of my budget buys the same goods I bought in the 70′s.

    This guy obviously has something to sell. I can’t wait for the gold bubble to burst like it did in the early 80′s. Unfortunately he’ll probably be out of gold when it bursts and only his followers will suffer.

    • Bitter Libertarian

      Doug, Follow the price of food. the one commodity that is a constant since before the FED was born.

      Other items are difficult to use as examples, however look at Automobiles and what the average sedan costs now vs 80-90 years ago.
      The same is true for machinery.

      Something that takes more dollars to buy does not mean its worth more it only means the dollar is worth less. The % of increase currently is disproportionate to its market value.

      • Doug Harrison

        You can’t buy the same food you bought in the 70′s. In 1975 (in NJ) , we got strawberries in June, blueberries in July and tomatoes in August. Of the three the only one we got year round was a blue-green-yellow thing they called a tomato in January. The others didn’t exist out of season. If you lived in central Va, you’d better have liked something that came from a pig, because that was the only meat in the supermarket. Today you get a selection from the whole world. I’m not saying there’s no inflation. I’m saying that there’s no way to calculate it because a Paasche Index (the CPI) requires a fixed market basket of goods which is impossible.

    • ValDM

      Doug,
      If you think you can buy as much with $20 today as you could in the 70′s, you’re delusional. Just go to the grocery store and try out your theory. I used to be able to feed just myself on about $12 a week, and I ate very well. Go to the grocery store today and see how much meat and produce you get for $12. That amount of money will only feed you for about a day now.

    • vicki

      Doug makes a common mistake in comparisons.

      Computers. The computer Doug bought in 1975 was one of say 5000 in the world. (just for ref)

      The one you can buy (thanks to volume and competition) is in MUCH greater supply (50 MILLION and counting) along with most/all of the parts like memory. Innovation replaced iron cores with much cheaper raw materials. (Supply/demand again)

      Now let us look at some things that have NOT changed/been innovated

      Houses. 1975 $32,000
      1980 115,000 (I know cause that is what we paid for it.
      we knew the 1975 price cause that was the
      amount of the first mortgage that we took
      over.)

      2007 $900,000 (Just a guess based on average prices then
      and now)

      Gasoline 1960s 0.19 gal
      1970s 0.50 gal
      1980s 1.00 gal
      1990s 2.00 gal
      2000s 3.00 gal (all numbers approx)

      Milk now over $4 gal

      Hamburgers 1960′s $0.10
      2010 1.00-7.00 depending on fluf.

      and that is just the last ~50 years. Cause that is about
      the time frame of Doug’s computer purchase.

      • http://?? Joe H.

        vicki,
        Just a little tune up to your post. I worked at a gas station in 1971 part time while in the service at Ft Benning and it was twenty seven point nine cents per gal on Victory drive just outside Benning. I buy a gallon of milk now for 2.65 a gallon. In 1990, we bought our house for 69,900 added to it and it’s worth about 200,000 now! The problem with your post is that prices vary greatly from area to area. Like I can buy a wide loaf of Italian bread for about 99cents and 12 grain for about 1.95. What do they cost in your area?

        • Vicki

          Thanks for the additional input Joe. Actually there is nothing wrong with my post. It covers costs in a specific area. It is not and was not intended to be an “average” over the country. Even today the price of a house is WIDELY variable based on, as Realtor would say, location, location, location. The price directly responding to the universal law of supply/demand.

  • Jim

    Woodrow Wilson did all of this and guess who’s on the 100,000 Gold Treasure note..Ever wonder why?

    Woodrow Wilson was America’s Stalin….

  • Marilyn

    The Money Changers by Arther Hailey is pretty good. Scary but good.

  • Jess Atwell

    All we have to do is look at the issues that the Fed Reserve supposedly resolved by creating phony money to save the system. We have been duped into paying interest on money that was quite simply created from nothing.
    1. The Saving and Loan financial Collapse $750B 1986
    2. The Enron Collapse $750B 1992
    3. The Dot Com Collapse $750B 1999
    4. The Afghan and Iraq Wars $2.0 T
    5. The Banking Collapse of 2009/2010 $3 T
    6. Obamacare……Unkown at this time, but estimates are between $13T and $43T
    7 Social Security and Medicare $26T estimated
    Factoring in the estimated figures…today’s dollar can be realistically forecast to be devalued by another 90% inflationary period. Hyper inflation will occur if the world loses confidence in the US Gov’t ability to support the dollar. And all bets are off then.

  • http://PersonalLibertyDigest Marlon Folden

    I love that old Steppinwolf song “there’s somethin happenen here, what it is isn’t exactly clear”. Thank God for people like Chip who see and tell it like it is. Advice to whoever it was that was quoting Jesus…. read your Bible! Jesus said “we will always have the poor among us”. Life isn’t fair pal, if it was I’d be playing golf on the PGA tour or pitching in the MLB throwin a 100 mph fastball! If you really want to invest in something, invest in your health so that you can work longer!

    MF

    • CONSERVATIVE AT BIRTH

      Buffalo Springfield not Steppenwolf

  • Mark Are

    For those of you just coming on…please read my post above for a good explanation of what is happening…A Dirty Little Secret about Federal Taxes.

  • Robin from Arcadia, IN

    Abolish the Feds… Enact the Fair Tax. No more IRS… Elect people who will be accountable for their actions. End pork barrel spending. Clean up Washington! November is coming!

  • James

    Mr. Wood stated: “Gold hasn’t climbed 467 percent in price; rather the U.S. dollar has dropped that much in value.” I’m sure he meant “Gold hasn’t climed 467 percent in value,” it certainly has climed that much in price. Gold’s value remains pretty much the same. An ounce of gold buys the same amount of corn, beans or wheat as it did 100 years ago.
    The Federal Reserve Bill was presented to President-elect Woodrow Wilson in 1912, which was then passed on December 23, 1913, with barely enough congressmen present to constitute a quorum. The Bill originated on Jekyll Island, Georgia (1910-1912) at meetings of private bankers. (Jekyll Island was then owned by the bankers who wrote the Bill.) Executives representing the banks of J.P. Morgan, Rockefeller and Kuhn, Loeb & Co. were there, as was Senate Republican Leader Nelson Aldrich.
    Paul Warburg (of Kuhn, Loeb & Co.) directed the proceedings and designed the primary features of the Bill. Another bank Executive, Frank Vanderlip (President of National City Bank of New York) in his autobiography of 1935 (From Farm Boy to Financier), stated:

    “I was as secretive, indeed I was as furtive as any conspirator. Discovery, we knew, simply must not happen, or else all our time and effort would have been wasted. If it were to be exposed that our particular group had got together and written a bank bill, that bill would have no chance whatever of passage by Congress…I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System.”

    In that Federal Reserve System, no money may come into existence without it being borrowed at interest, the rate of which is at the discretion of the Federal Reserve Board, and is published every month. The dollar has been devalued, inflated, since 1913. I can remember when a nickle would buy a douple-dip real ice cream cone, with a cherry on top.
    No new money can come into existence unless it’s borrowed by banks or the federal government, and at interest. This assures that the nations total debt is always greater than the money in circulation, which requires evermore borrowing, or bankruptcy. When Congress borrows $30 billion to extend the unemployment benefits of 1.7 million unemployed Americans, that money falls on a stagnant economy and will raise prices, of everything, accordingly. This process has led to the ridiculous notion that houses get more valuable as they age. It’s amazing what people will fall for.

  • Dave

    Every fiat money system in history eventually collapsed. I will happen to this one as well.

    • LimestoneFreedom

      And the quicker, the better!

  • Agitated

    ‘The Creature from Jekyll Island’ by G. Edward Griffin was plagerized from ‘Secrets of the Federal Reserve’ by Eustace Mullins, 1952. You can read this book online at barefootsworld.net/fedsecrets_00.html

  • germeten

    Taxes are not separate from the Federal Reserve issue. You are taxed specifically BECAUSE the Federal Reserve exists. the deal is this: Congress & Federal Reserve agree how much money gets printed every year. Certain amount has to be allocated for the yearly government budget, the rest is GIVEN to the Federal Reserve for COST OF PAPER & INK! Imagine paying 10 cents for $100. bill; that’s the approx. profit margin the Fed receives on simple transfer of ownership. Then they LEND the currency to mom-&-pop banks who raise the rate and lend it again. Point is the Fed profits are obscene. The interest you pay for using “the people’s” currency is a private tax you pay the banks who hold the cartel. Now here is the connection between federal taxes and the “Fed” (which is NOT federal, but the confusion created was intentional); because Congress/US Treasury hands the majority of funds printed to the Federal Reserve, it has no funds of its own, to pay for government projects, like roads, bridges, or anything else; it has to BORROW FUNDS BACK FROM THE FED AT FACE VALUE, WHAT IT SOLD FOR PENNIES! And when Uncle Sam asked the Fed how it should deal with
    its own broke/pauper status, having handed all that currency over to the banksters, the banksters’ reply was “Simple: TAX THE PEOPLE!” Your government is broke because it gives all currency away to bankers. So because of the Fed’s existence and the bankers’ favour from Washington, you MUST be taxed. It’s the only other means government has to raise necessary revenues. There are customs taxes and excise duties too, but that just isn’t enough. Get rid of the Fed, hand ownership of currency back to government again, and it can print currency as needed, and not need to tax you; but the banksters will never let you believe that, they say government printing money causes inflation, and then proceed to do it themselves with fractional reserve and leveraging practices. It’s the exact same thing, only the latter is for their personal profit, and their stock-holders.

  • http://thekolinskichronicle.com Bruce Kolinski

    The average American cannot get their arms around the concept of your article. I have researched this since the mid-sixties and have to say that documented fact is not conspiracy. Thank you for the article. My blog The Kolinski Chronicle is dedicated to ending the Fed and its vagrant sister, the progressive income tax, but the thousands of think tanks and hundreds of organizations stemming from the Tavistock Institute, not to mention the billions of dollars lavishly spread around make it a steep uphill climb.

    Our Federal government regulatory structure has devolved into a support system for elite international mega-monopolies under the guise of “consumer protection”. It’s pathetic really, but then I’m just another nut. Ignorance is economic slavery and I certainly hope the average American enjoys both because they are certainly on the receiving end of it and the plantation is shrinking, while the fence grows higher every day.

  • Duane Rosekrans

    A lot of windage going on here. I did not see one comment on Ron Paul’s book End the Fed. Which was published in 2009. I probably talks about what Mr. Griffin dicusses in his book. (I have not read it yet but am looking forward to it.) Ron Paul leads a very intelligent discussion on the illegality of the Federal Reserve System and how it works, along with some ways to end all of this economic mumbo jumbo going on today.

  • Larry H.

    Let say Congress needs money and goes to the Fed and says we need one million. The fed says sure, but we need colateral. Okay we will give you T-bills worth one million.
    Since the fed with their 9 member banks are the keeper or the records, and responsible for transfering money from one person to another. now transfer one million to the congressional checking account.
    How did they do that ? As I said they are the record keepers, they put a checkmark in congress checkong saying that they had a million.
    Where did the money come from ? No place–they created it with the stroke of a pen, but now they have one million of negotiable T-bill paper that they can sell. They just stole one million. Now, just replace one millioin with billions and you got the picture.

    Remember the fed is a “”private corporation”" owned by 8-9 banking families. They are unbelieveably enormouusly wealthy, but they never show up on the top 10 lists, do they.

  • steve

    Ending the FED is the right thing to do. The Money Masters explains why a return to a gold standard (immediately) is not.

    Our return to a gold standard would simply change the apparatus by which the IBC controls us and our economy.

    We need to do this while the US is still the pre-eminent military power in the world.

    End the FED,Print Greenback Dollars, and elect Ron Paul.http://www.youtube.com/watch?v=lXb-LrVkuwM

  • Dave

    All the mainstream economists want a target inflation rate around 2%. Any thinking person wonders why they would want inflation at all. Inflation allows centralbanks/governments to pay off current debt with future currency of lesser value.

    Of course this is in fact a hidden tax on future consumtion. It distorts the ability to save for retirement by devalueing future pension benefits. Increasing the money supply eventually will cause deflation due to the fact there is a backdraft of currency flowing to the Fed to pay them the interest demanded on the Fed reserve notes they print for the treasury [the US has the right to issue currency outside the Federal Reserve system but they havn't since JFK was president] The whole system is so absurd, once you understand, it you wonder why the taxpayers don’t take to the streets in protest.

    What happened in the housing bubble was predicted years ago contrary to what the media trys to tell you. Eventually this will spiral completely out of control and the dollar will collapse. The housing bubble was a symtom of a bigger problem, not the cause.

    The more money they dump to stimulate the economy the worse it will actually get. There is about a 18 month delay so temporarily things seem to improve.

  • EltonJ

    Paper money is an illusion. It actually has no real value. Gold and silver are rare and actually have value. Gold and silver can be used to purchase goods, can be traded, and are tangible things.

    The Federal Reserve Note that means 1 dollar depends on debt to stay in circulation. Not only that but the banks charge interest on top of your debt. The system is set up so that individuals can fail, and the Banks collect profit at the individual’s expense. The main reason why banking a profitable business is because they make the profit on the backs of the people’s labor.

    To defeat the banks means punishment. However, no one is willing to dole out punishment on the banks ourselves, is what we should do. But punishment of the creature means primarily revolting against our government because the Financial Lobby is the biggest lobby in Washington. So, We the People do not have the power to punish the Federal Reserve and the Banks, like we should. Punishment, as in no Banks and no Federal Reserve, will come from God or from Nature because we are unable to deliver them up unto the People’s justice.

    I suggest everyone to prepare for a time when there will be no banks, no Federal Reserve, and no paper money.

  • PHILesq

    Good article…..but fails to mention the power elitist behind the federal reserve and their agenda(s). Take it from the top of the piramyd and back to the days of Andrew Jackson and you’ll see that the all powerful ROTHSCHILD family has been seeking control of OUR nation for a long long time.

    “Permit me to issue and control the money of a nation, and I care not who makes it’s laws”…..Mayer Amschel Bauer Rothschild……1744-1812

    On a daily basis the Rothschild control the worlds gold prices. They own most of the world gold.The list of the major banks in the world will include the Rothschilds or their subordinates sitting at the very head of the corporate table. The Rothschild are self proclaimed New World World Order advocates and also sit at it’s very head. If ever we audit the fed, we’ll discover that the gold in Fort Knox is gone. This is why you can watch those on the House financial committee, along with the likes of Ben Bernanke and Timothy Geithner squirm at the mention of an audit or at the sound of Ron Pauls name. Their latest craze to bring this nation down on it’s knees is the printing of all that fiat money…..stimulus poly razamataz ! I always wondered why it is that all of these so called financial experts don’t point out who the G-20 really are, or why their are secret Bilderberg meetings…..who is the U.N. and who is the E.U.! Perhaps these people and their organizations are so powerful that no one worth their salt will mention them or what their doing not only to OUR nation , but to the world as well !

    • Dave

      Actually Phil everything that has been said can be found in public records. People don’t want to really know the truth otherwise they must confront the problem. It is easier to watch Oprah or a football game rather than study macroeconomics. The public in general is the problem because we enable larceny through apathy.

      Hey, I just invented a slogan for the Federal Reserve! Larceny through Apathy. Kind of catchy isn’t it.

      • PHILesq

        Dave….right on …..and I do like your new slogan for the fed. This isn’t a left wing or a right wing problem ….it’s a problem that’s endemic of OUR nation and the world. I would like to know how many people even consider the Bushes in this matrix….after all it was Prescott Bush helped finance A. Hitler in WWII….along with the Rothschild family. By accident I stumbled across the vast holdings of the Rothschild empire when I was trying to find out who owned the fed. I found it under those exact words ” who owns the federal reserve” ! Being a geologist and having interest in a placer gold mine here in Alaska, I’ve know about the Rothschild control on gold and my search continued from there. Holder, Bernanke and the whole lot come from either the federal reserve banking systems or from a Rothschild held company. M.S.M.’s will never let this information be known, and it’s not like a person can’t find this information out….it’s everywhere on the internet. Hopefully people are beginning to wake up before it’s too late. I might add that J.F.K. was thinking and more than likely going to abolish the federal reserve before they (Rothschild) killed him !

        • PHILesq

          As an addendum I would like to add that another problem this nation has is our indebtedness to China. Seems that Barry O. and his minions decided to have Hillary go to China and shake a deal with them….but this deal involved what to use as collateral for our debt. China now is holding the mortgage papers on OUR real properties from the banks that were about to fail. We are already in default mode with them having failed to make the interest payment on their loan to us ! Chuna could call the debt at any time and if not paid foreclose on what was thought to be sovereign U.S. property ! Search ” China’s right to eminent domain”! This is also one of the reasons treasury secretary Timothy Geithner went to China…..smoke , string and mirrors are expertly being used by not only the boys on the beltway but by the mobsters from Chi Town that sit in OUR White House !

  • David

    So, according to fed reserve theory, all they need to do is print the money they need to cover their bills…Sounds like “I must still have money in my account, because I still have checks..”
    In the end this would work if we never needed to buy from any other country. It is all monopoly money with no real value, only perceived value. I just decided my last $100 is now worth 1 million… Hurray, I am rich!

  • Dr. Mabuse

    Here’s an excerpt from a speech given by Louis T. McFadden on the Federal Reserve Corporation:

    “Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation’s debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.

    “This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.

    “Some people who think that the Federal Reserve Banks United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lender. In that dark crew of financial pirates there are those who would cut a man’s throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

    “These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky’s passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky’s disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun breaking up of American homes and the dispersal of American children. “Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any.

    This speech was given in 1934, and from my point of view nothing has changed.

  • Karolyn

    This is interesting to me in that I just started watching the 2nd “Zeitgeist” movie on Youtube http://www.youtube.com/user/sandysmission#p/c/FF1EED1AA51B4835/0/UHiuaGJ46zo that explains the monetary system. According to the movie, the first Federal bank was in the 1800s but was closed by Pres. Andrew Jackson because he did not think it legal. The movie is also full of other fun facts, including the stories of why we went to war in Iraq (because Hussein wouldn’t take the payoff from our gov.), Cesar Chavez (same, but he dodged the bullet) and other underhanded workings of the Federal government. Very interesting stuff with an interview of a former “economic hitman.” (I think it’s “economic;” I know it’s “hitman”.) For me, I don’t care how simply they try to explain the monetary system; I don’t get it. Oh, there’s also a story about a man facing foreclosure in 1931 who went to court against the bank and won.

    • Al Sieber

      Karolyn, Chip explained in the article how money works. Sadam, Chavez, Iran, etc. don’t or didn’t want our Fed. Notes because they’re worthless. the dollar is no longer tied to oil, hence no petro dollars. reread the article and maybe you can retain something. something is worth only what someone will give you for it. also read the coinage act of 1792.

      • Karolyn

        Actually, the “hitman” in the movie said Chavez (and others) didn’t want our money because he didn’t want the US to benefit from his country’s resources. He wants everything for his own people. I can see where what you said might be the case with Hussein.

        • Al Sieber

          Karolyn, one of the reasons we went into Iraq was because Sadam would not accept our currency anymore, and Iran isn’t either or is getting to drop it. now these are only rumors I heard a few years ago. thanks for bringing up the “Confessions Of A Economic Hit-man” I’ve heard him on the radio lots of times.

  • Mark Are

    Blood running in the streets. Mobs of rioters and demonstrators threatening banks and legislators. Looting of shop and home. Credit ruined. Strikes and unemployment. Trade and distribution paralyzed. Shortages of food. Bankruptcies everywhere. Court dockets overloaded. Kidnappings for heavy ransom. Sexual perversion, drunkenness, lawlessness rampant…

    One distinguished politician writes to another: “The wheels of government are clogged, and we are descending into the vale of confusion and darkness. No day was every more clouded then the present. We are fast verging to anarchy and confusion.”

    Where, when and whom? Get ready for a shock: AMERICA, 1786, ten years after the signing of the Declaration of Independence. The correspondence was from George Washington to James Madison. On February 3rd, 1787, Washington wrote to Henry Knox: “If a person had tod me that we there would have been such formidable rebellion as exists, I would have thought him fit for a madhouse.”

    What went wrong? What forced this noble new country into conditions far worse than the tyranny against which it had declared its independence in the first place? The history books tell us it was a complicated variety of interrelated things, but reality tells us it was only one: the money issued by the Continental Congress and teh states’ banking houses was paper that could not be redeemed for gold or silver coin. Inflation, that was what had sunk George Washington to the depths of despair.

    The paper currency of the Congress was printed in such exorbitant amounts (in relation to the precious metals they represented) that wages and prices skyrocketed, forcing the Legislature to enact harsh wage and price controls. When these failed, moral-sounding laws reeking of piety and patriotism were enacted in an attempt to chain the people under penalty of violence to the government’s absurd money:

    If any person shall hereafter be so lost to all virtue and regard for his Country as to refuse to accept its notes, such person shall be deemed an enemy of his Country.

    This amounts to a law protecting bad check artists and so the people naturally ignored it and others like it. The depreciation of paper currency relative to coin followed the same sickening course our paper currency follows today….

    Folks, the previous information was taken from a book written in 1980 titled “Miracle on Main Street” by the late F. Tupper Saucy, let this sink in…NINETEEN EIGHTY. We are now in the year 2010, rapidly approaching 2011. That was THIRTY ONE years ago. Have you heard the phrase “Worthless as a Continental?” It is the same concept. Let’s look at the problem that is looming or that we are already embroiled in closer:

    “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
    – John Maynard Keynes

    So what can a victim of this system do? We need to force a county, somewhere in this country to demand that the state demand that Congress issue gold and silver coin again. The bigger the county the better. If all the citizens of the county refused to pay their property taxes, that would do it. It would snowball from there. We could concentrate on that country by educating everyone in it with mail, phone calls etc.

    I won’t mind making 50 cents an hour…as long as gas is 2 cents a gallon. And eggs are 2 cents a dozen. And my savings do not deteriorate which will give me the ability to actually SAVE which is something I have not done for years because I see how the system is set to screw us by devaluing our purchasing power by the week.

  • Thomas Hamilton

    Please read, “The Secrets of the Federal Reserve” by Eustace Mullins.
    R.I.P. Eustace 1923 – 2010.

    P. S. No relation to the rothschild agent alexander hamilton.

  • http://sgorms@yahoo.com Shar

    The Secrets of the Federal Reserve on the Library of Congress Website.

    We are being Had AMERICA. B.O. IS PART OF THE PLAN.
    THE BILDERBERGERS/UBER-RICH/FEDERAL RESERVE/CENTRAL BANK IN BED TOGETHER. UCK.

  • http://FarTooMuch.Info Russ Lemon

    As you increase the cost of a minimum wage hour of work, the price of everything goes up. It is just that the taxes go up faster then anything else. Plotting the price of things on a semi-log chart gives an interesting perspective:
    http://opinion.FarTooMuch.Info/Worth.htm

    The money parable called Oz:
    http://www.youtube.com/watch?v=D22TlYA8F2E&feature=recentf
    talks about the history of money through the ages. [long but informative video] It compares the gold standard versus paper money issued by the state.

  • http://yahoo.com Bruce

    CLARENCE SWINNEY, right on

    It was Bush that started TARP and Car Company Bailout (Remember too big to fail?). Look at the AMBSL, St. Louis Adjusted Monetary Base and see how DOUBLED the amount of money in the three months after Obama won the election and Bush was the Lame Duck president. Where did all this money go? When it surfaces will it create inflation?

  • http://yahoo.com Bruce

    CLARENCE SWINNEY, right on

    It was Bush that started TARP and Car Company Bailout (Remember too big to fail?). Look at the AMBSL, St. Louis Adjusted Monetary Base and see how Bush DOUBLED the amount of money during the three months after Obama won the election while Bush was the Lame Duck president. Where did all this money go? When it surfaces will it create inflation?

    Stop whining about Obama when all he is doing is following Bush’s lead. No even Obama can get out from under Goldman Sachs.

  • http://gmail i41

    Bruce, yes Bush agreed with Onumnutts and the dems, he signed off on TARP, the Omoron and the dip sh-t democraps created the car company buy outs and the no jobs stimulas foul up. Also he appointment of tax cheats Daschle, Feithner, Pangel, Waters were in there like pig in cow manure. You can tell us all you voted for the marxists muslim moron mule. If you keep praising this crossbred liar, you will join the pen with Hflashman. When dems like to have Bush back there is a real problem with ol purple lips!

  • http://mmh@digitalpassage.com Helen Lisle

    Irene says: 1913 was a bad year for our country. The 16th amendment, the 17th amendment and the Federal Reserve Act were passed and they are all related. The smaller states wanted equal power with the larger states and so our founding fathers gave us a Congress of two houses. Each State was represented by 2 Senators elected by the state legislature and the People elected their Representatives. When senators were elected by the people the states lost control over them
    and their sovereignty. Even though Congress is prohibited by the Constitution to change the places of elections of the senators and even though they can lay and collect taxes provided it is apportioned by states in proportion to the representatives thereof, where is the
    patriotic attorney that pursues the rebels in office that are rebelling against their oath to support and defend the Constitution?

  • Irene

    1913 was a bad year for our country. The 16th amendment, the 17th amendment and the Federal Reserve Act were passed and they are all related. The smaller states wanted equal power with the larger states and so our founding fathers gave us a Congress of two houses. Each State was represented by 2 Senators elected by the state legislature and the People elected their Representatives. When senators were elected by the people the states lost control over them
    and their sovereignty. Even though Congress is prohibited by the Constitution to change the places of elections of the senators and even though they can lay and collect taxes provided it is apportioned by states in proportion to the representatives thereof, where is the
    patriotic attorney that pursues the rebels in office that are rebelling against their oath to support and defend the Constitution?

  • John

    We Americans, need to kill the Federal reserve bank system and return to the Gold standard before they came along. All parts need to be kill to send America free. The federal reserve has the its collection agency (IRS) and it muscle for both ATF. Get rid of this and it will boost economy and stable.Other countries like : China, Japan, Russia, India, Switzerland,and others .We need to get back to it. America used to be neutral and money back by Gold and silver not these car wash tokens.Please watch on youtube “obama doesnot want you to see this”. and “Obama deceptions”DVd Hd full lenght version . and This how Obama is running country by the “cloward Piven stratgy”. And last: Millions of Americans are waking up to the fact that the Federal Reserve is bad, but very few of them can coherently explain why this is true. For decades, an unelected, privately-owned central bank has controlled America’s currency, run our economy and has driven the U.S. government to the brink of bankruptcy. It operates in great secrecy, it has never been subjected to a comprehensive audit and yet the actions it takes have an impact on every single American. It is an institution designed to drain wealth from the U.S. government (and ultimately from the American people) and transfer it to the ultra-wealthy. Have you ever wondered why a sovereign nation such as the United States has to borrow United States dollars from anyone? Have you ever wondered why a sovereign nation such as the United States does not even issue its own currency? Have you ever wondered why we allow a group of unelected private bankers to run our economy?

    Those are some very important questions. Hopefully what you are about to read will open the eyes of many. The truth is that our financial system is centrally-controlled and centrally-managed by a group of banking oligarchs who have constructed an ever-expanding debt spiral which has been efficiently designed to slowly transfer all wealth into their hands.

    The following are 11 reasons why the Federal Reserve is not good for the United States….

    1 – The Federal Reserve was created as a way to enslave the U.S. government with debt. The truth is that the U.S. government only goes into debt if it chooses to. Theoretically, one day that U.S. government could simply decide to print as many U.S. dollars as it wants and pay off all government debts. But under the current system that is not allowed. You see, today the U.S. government does not issue any money. The Federal Reserve issues all money. That is why they are called “Federal Reserve notes”.

    Under the current regime, whenever the U.S. government wants more currency to be created it has to go into more debt.

    In a previous article entitled “It Is Now Mathematically Impossible To Pay Off The U.S. National Debt” I explained how this insidious system works….

    If you will pull a dollar bill out and take a look at it, you will notice that it says “Federal Reserve Note” at the top.

    It belongs to the Federal Reserve.

    The U.S. government cannot simply go out and create new money whenever it wants under our current system.

    Instead, it must get it from the Federal Reserve.

    So, when the U.S. government needs to borrow more money (which happens a lot these days) it goes over to the Federal Reserve and asks them for some more green pieces of paper called Federal Reserve Notes.

    The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves (which happens a lot these days).

    So that is how the U.S. government gets more green pieces of paper called “U.S. dollars” to put into circulation. But by doing so, they get themselves into even more debt which they will owe even more interest on.

    So every time the U.S. government does this, the national debt gets even bigger and the interest on that debt gets even bigger.

    Now, apologists for the Federal Reserve system are quick to point out that the Federal Reserve does not make much of a profit. Once a “statutory dividend” of 6% is paid to member banks and a capital account surplus is “maintained”, the rest of the profits of the Federal Reserve go back to the U.S. Treasury.

    Problem solved, right?

    Wrong.

    The point is not how much of a profit the Federal Reserve makes or does not make.

    The point is that the Federal Reserve is a tool for creating U.S. government debt which slowly drains our national wealth and which ends up greatly enriching the global elite.

    As of July 1st, the U.S. government had spent $355 billion so far in 2010 on interest payments to the holders of the national debt.

    Have you ever wondered who gets all that money?

    The truth is that the wealthiest individuals around the globe have been getting very rich for a very long time off of government debt.

    2 – The Federal Reserve creates money out of this air. In a previous article, I noted how this fact comes out in congressional hearings and yet the American people just don’t seem to get too upset about it….

    During a recent Joint Economic Committee hearing on Capital Hill, U.S. Representative Ron Paul directly confronted Federal Reserve Chairman Ben Bernanke about this 1.3 trillion dollars. As Ron Paul described how this 1.3 trillion was just created out of thin air, all Bernanke could do was nod his head. Why? Because it was the truth.

    3- The huge predator megabanks that now dominate the U.S. banking system use the Federal Reserve as a tool to make money. One of the ways they do this is called the U.S. Treasury carry trade. What happens is that the Federal Reserve lends huge amounts of money to the megabanks for next to nothing, and then these megabanks use all that cash to buy U.S. government debt. This little “trick” helped enable four of the biggest U.S. banks (Goldman Sachs, JPMorgan Chase, Bank of America and Citigroup) to have a “perfect quarter” with zero days of trading losses during the first quarter of 2010. Wouldn’t you like to have a perfect batting average?

    4 – The Federal Reserve devalues our currency. Since the Federal Reserve was created in 1913, the U.S. dollar has lost 96 percent of its purchasing power. The truth is that just a two percent inflation rate will wipe out half of your purchasing power within a single generation. In the chart below, you can clearly see that the beginning of the rapid rise of inflation in the United States coincided with the creation of the Federal Reserve….

    5 – The Federal Reserve manipulates the U.S. economy by setting national interest rates. By keeping rates high or low, the Federal Reserve has the power to create economic growth or to destroy it. The have the power to inflate massive bubbles and to pop them. Most Americans give way too much credit and blame to presidents like Bush or Obama for how the economy is doing. The truth is that they really don’t have that much control over the economy compared to the Federal Reserve.

    6 – The Federal Reserve also controls the national money supply. They can pump trillions into the economy or pull trillions out without being accountable to anyone. This can have disastrous consequences. For example, after the U.S. stock market crash of 1929, the Federal Reserve continued to contract the money supply. Many analysts believe that this was one of the key things that precipitated the Great Depression.

    7- The Federal Reserve is not part of the U.S. government. The truth is that the Federal Reserve is about as “federal” as Federal Express is. In defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve objected by declaring that it was “not an agency” of the U.S. government and therefore it was not subject to the Freedom of Information Act. It is kind of funny how Fed officials are always talking about how important their “independence” is, but whenever anyone starts criticizing them for being private they start stressing their ties with the government.

    8 – The Federal Reserve has become far, far too powerful. The reality is that those running the Federal Reserve are not elected and yet have an enormous amount of control. In fact, Ron Paul recently told MSNBC that he believes that the Federal Reserve is more powerful than Congress…..

    “The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress.”

    9- The Federal Reserve is dominated by Wall Street and the New York banks. The New York representative is the only permanent member of the Federal Open Market Committee, while other regional banks rotate in 2 and 3 year intervals. The former head of the New York Fed, Timothy Geithner, is now U.S. Treasury Secretary. The truth is that the Federal Reserve Bank of New York has always been the most important of the regional Fed banks by far, and in turn the Federal Reserve Bank of New York has always been dominated by Wall Street and the major New York banks.

    10- Federal Reserve Chairman Ben Bernanke wants to completely eliminate minimum reserve requirements for banks. Fractional reserve banking has always been a way that the bankers have conned the public, but now Bernanke wants to get rid of the pretense of “reserves” altogether.

    It is almost too bizarre to believe, but it is right there in black and white on the Federal Reserve’s own website….

    The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.

    11 – The Federal Reserve is not accountable to anyone. The Federal Reserve has never undergone a true comprehensive audit since it was created back in 1913. Ron Paul’s proposal to audit the Federal Reserve, which had previously been co-sponsored by 320 members of the U.S. House of Representatives, ultimately failed by a vote of 229-198.

    But shouldn’t the American people be able to see what is going on inside the Federal Reserve?

    Shouldn’t we have some way to keep them accountable?

    After all, they have an incredible amount of power over us, shouldn’t we have at least a little bit of power over them?

    Unfortunately, the truth is that they desperately do not want light to be shined on the elaborate “shell game” that they are running.

    Have you ever wondered if it was just a coincidence that the personal income tax was implemented just about the same time that the Federal Reserve was created?

    Why does the U.S. government have to tax us?

    Why can’t the U.S. government just print up all the money that it needs?

    Well, the way that our Congress spends money that would probably create horrific hyperinflation, but that is the subject for another article.

    The point is that the U.S. government should not have to get U.S. dollars from someone else.

    If you take a few minutes to stop and think about it, an America where there is no Federal Reserve, no personal income tax and no IRS is not that hard to imagine.

    If the U.S. government functioned just fine without all of them at one time, then why couldn’t the U.S. government function just fine without all of them now?

    The system we have now clearly is not working. The Federal Reserve was supposed to guarantee that our financial system would be perfectly stable, but in reality our financial system has become much more unstable.

    It is time for different thinking. It is time for the U.S. government to take back control of our currency and of our economy. It is time to start electing some people with common sense to represent us in Washington.

    So what do you think of the Federal Reserve? Feel free to leave a comment with your opinion….

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    • Mark Are

      The founding fathers didn’t put us on a “gold standard”. They put GOLD and SILVER as the money. If you use paper money at ALL “they” will screw us. PERIOD. No paper money. We don’t need it. We don’t want it and you that do, well, go to the gym and do a bit of exercise for your tiny weak muscles because you might have to actually carry around a few ounces of gold and silver in your money bags. Give me a break…

      • James

        Mark, The Founders didn’t create the then existing money system, they were born into it. Back then, gold and silver coins (from every foreign nation that minted them) were in circulation here. Back then, a coin wasn’t valued by the words and pictures on it, it was valued by how much it weighed.

  • John

    Americans wake up! more info.Watch the moneymasters tape or dvd 1888 -the plot ext.60 .Or write Money Masters Video, box 114,Piedmont,Ok 73078
    Please tell everyone that loves this country.If you do not get the hell out!

  • HERMANNE

    HF IS INLA LA LAND RIDING ON A DEMOCRATIC TITANIC
    HOPE AL, GORES MELTING ICEBERGS DONT HIT HIS DINGHY
    HE NEEDS TO GO BAC TO SCHOOL STUDY HOW NON FED WAS FORMED
    HE MUSTY GRADUATED FROM KINDERGARDEN
    AT LEAST

  • HERMANNE

    YES THE U.S. DOLLAR IS USED AS REAL FIAT PAPER
    SHITHOUSE PAPER
    NOT FOR WALLPAPER EITHER
    GET A GRIP ON YOUR REAL MONEY SILVER AND GOLD
    CHINA WILL EAT YOUR LUNCH SOON
    KING OF THE HILL WILL HOLD MOST GOLD AN SILVER

    • Al Sieber

      HERMANNE, you got that right, China’s citizens are buying gold and silver in record amounts, China is also buying mining property world wide. but we have our paper for security.

      • http://?? Joe H.

        Al Sieber,
        We can stuff a mattress with paper money! Try that with your old lumpy gold!!!

        • Al Sieber

          Joe H., yeah, toilet paper too, try that with your lumpy gold.

          • http://?? Joe H.

            Al,
            OUCH, THAT HURT!!!!!!

  • http://ntlconsulting.blogspot.com Norb Leahy

    Chip is correct. The Federal Reserve has inflated the dollar to our peril. It’s time for registered voters to reassert control over elected officials to cut government spending in half and rein in the Federal Reserve. Restricting campaign contributions to allow only registered voters to make campaign contributions would go a long way toward re-setting the system.

  • John R.

    “If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and the corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their father’s conquered. I believe that banking institution are more dangerous to our liberties than standing armies.. The issuing power should be taken from the banks and restored to the Government, to whom it properly belongs.” ~~Thomas Jefferson to John Tyler, 1816
    ———————————————————————-
    Yup. And we right now entire middle class families presently living in America’s State forests and campgrounds. Job gone, savings gone, house is gone. Buy Gold or buy a tent.

  • Anthony

    The real problem here, is whether you believe THE PEOPLE should hold power over their Government(s), especially at the Federal Level.

    Do you believe the FEDERAL should dominate the State?
    Do you believe in State Sovereignty? Which is it?

    The Constitution, written by Thomas Jefferson, is specific in outlining the STATES ARE SOVEREIGN over The Federal. Read, and memorize, the 10th Amendment. This is what is known as Jeffersonian-ism.

    Alexander Hamilton & John Marshall (and some say John Jay, as well) preferred that this Country be run much like a Monarchy. As did John Adams. Only John Adams was against teh Banking Cartel, led by the Rothschilds in Europe.

    George Washington was a military man, not a politician — and therefore did not understand the musings of monetary power of a peoples. John Adams did, but his reasonings about the singular States was misguided at best – hence he preferred the dominant FEDERAL over the STATES… to keep them in line… which is monarchistic in nature.

    Hamilton caused our Government to create high debt during the Revolutionary War… citing the mythology that DEBT CREATES CREDIT. This mythology is exactly what the Rothschilds Global Banking System has always been based on. And, one by one, all Monarchy’s have fallen victim to this banking philosophy throughout the last 250 years. Today, the Rothschilds, thanks to this so-called System, are now worth over $2-trillion dollars by themselves. This type of wealth could end hunger on this Planet, once and for all… yet, it is the last item on their Agenda of Global One World Government… and the suspicion is that FAMIME will ensue once they have been successful.

    Currently, the U.S. lives under the hamiltonian Decree of the FEDERAL OVER THE STATES… which is the exact opposite of our Constitution.

    THOS WHO WOULD SUPPORT SUCH NONSENSE, either do not understand the sophistication of what they are kneeling in front of, … or they prefer Monarchy’s and Dictatorships over a man’s right to true freedom.

    It doesn’t get any simpler than that.

    Freedom does not exist by itself – it must be based on values.
    Freedom is an essence of man’s rights based on the Judeo-Christian Ethic.
    Without this Judeo-Christian Ethic – there is NO freedom.

    • Al Sieber

      Anthony, I agree with about 99 and 3/4 % of what was written in your post. there’s some real serious issues there.

  • http://kb4xw@charter.net Reno

    I can tell you one thing from experience.The man that wrote the article is right.
    In the 1940′s I could buy a baby ruth candy bar for a nickel.No taxes until an item cost 15 cents.tax was 3 cents on the dollar.In 2010 the sales tax is 9.5 per cent on the dollar.The baby ruth candy bar costs $1.99 today sept,4,2010.The tax is $.18 cents =$2.17 all together.I am paying 40 times more today for the candy bar plus .18 cents tax.With the $.18 cents tax back in the 1940′s,I could buy 3 Baby Ruth candy bars and the $.01 cent tax with $.02 cents left.With just the tax I pay today.The same for an item that cost $1.00 in the forties had a tax of $.03 cents.Today it costs $20.00 to $30.00 at $.095 % will have at $20.00 will have $1.90 cents tax.You are eating up the value of the dollar by the tax and the inflated dollar which goes on and on and later on will take a suitcase full of dollar bills to buy a piece of bubble gum which in the 40′s was a penny.This is reality.

    • http://?? Joe H.

      Reno,
      Same problem with your post area to area it changes. Here in Lake County Ohio we pay 6 cents on the dollar!

  • http://kb4xw@charter.net Reno

    So tell me Hflashman,has not the dollar lost 90% of its purchasing power?Far more than that from 1913 when an Indian chief motorcycle cost $650 dollars in about 1955.Today that machine would cost as much as a Harley-Davidson and was just as good.Indian went out when Yamaha came in with a cheaper bike.I always wanted an Indian Tomahawk,but they went out of business.I am 67 and still have never owned a motorcycle.Savings interest was in those days around 3.5% to $4.%.If you had a million dollars in those days you could earn $40,000 per year interest if you could leave it in the bank and didn’t spend any of it.You could not get credit unless your job could cover it.A 20 by 40 feet house that cost $5000.00 in 1964 would cost $100,000 today or more.It is ridiculous at the cost of housing.The house prices doubled in 1974.So called oil shortage.
    This world is run by the bilderbergs,Rockefellers and a few more.
    Basically,I think our next president has already been picked for the next election.It may be Obama or someone else.But we think we elect but we don’t.I don’t know exactly how they do it.Just where they (whoever they are)put the money.

  • John Riverside

    THREE CHEERS FOR CHIP WOOD LAYING OUT THE CREATION OF THE FEDERAL RESERVE SYSTEM. NOW LETS GET TO THE CENTRAL ISSUE OF WHO OWNS THE FED.

    The rantings and intentional diversionary tactics of the Flashman types of the world are to distract us from following Chip Wood’s lead and implementing the wisdom of Maetternich,which I paraphrase, “When events in national or international commerce and politics make no sense, take a long step backwards and look to see who stands to gain — then they will make perfect sense.” Or, in other words, “Follow The Money.”

    The Federal Reserve System is a Franchise of the Federal Reserve Bank of New York, which is absolutely private and owned by the Rothschilds, The Warburgs, The Stuart Family that controls the British monarchy, some American Families like the Rockefellers, the Morgans and about another half dozen other family dynasties. The Federal Reserve Bank ownership by these private families makes them the sole beneficiaries of our National Debt which arises out of the Federal Reserve Bank “loaning us our money,” (which our “Federal Reserve Notes” attest to) by creating it out of thin air from the power given to their private Federal Reserve Bank by the Federal Reserve Act of 1913. The families collect all the interest on the money they create out of thin air and loan us. The scheme is so simple in its concept it is brilliant and is never talked about because of the iron control the families have over the Media in this country, Europe and Canada.

    The families maintain societal and political control of The United States, Great Britain and other countries through the noble sounding Council On Foreign Relations, http://www.cfr.org,the very private, by invitation only club whose 4500 members include the owners of all the major banks ande financial institutions, the owners of all the media, the senior partners of most of the largest law firms in this country and Europe, the heads of most of the international corporations and the establishment politicians on both sides of the aisle in both the House and the Senate and virtually every part of the Executive Branch of our government. It has all been designed to keep the families that own the Fed in complete control of our money supply and pay them with are ever mounting National Debt that has now been launched into the Trillions with the family controlled Obama Administration. That is why Obama bailed out the Bankers as his first act as president — because their greed caused them to lose Trillions when $50 Trillion of the $250 Trillion of Mortgage Backed Securities the families’ Fed bought back from the home loan banks that were forced to make home loans to the non creditworthy from 1994 to 2008 and were sold into the world market from Chase Manhattan Bank, now JP Morgan Chase, evaporated in September 2008 propelling us all into today’s Recession / Depression.

    The good news is that this greed created disaster has awakened the citizenry of the United States and caused us all to do something about this entire family controlled government by firing all those in power and replacing them so that the Federal Reserve Act of 1913 can be repealed and The United States will render its own U.S. Treasury Notes as it did for 100 years and eliminate the national Debt owed to the Federal Reserve Bank’s families with the stroke of a pen.

    It is for all these reasons that the present day Tea Party Patriots are rising up and taking back our government from the family controlled politicians in the electoral revolt that is taking place in this country right now.

    Get informed, read The Creature From Jekyll Island, The Money Masters, The Brotherhood of Darknesss, and take action this November and throw out of office every Liberal RiNO and Democrat and replace them with a fiscal and moral conservative who will work for us to regain control of our ow2n country, our privace, our freedoms and our money supply. This is not that difficult. And it is long overdue.

    • BrotherPatriot

      I read great hope in your post, Mr. Riverside. If Americans can wake up we can affect these changes quickly.

      Indeed…continue spreading these truths and the seeds can be planted for the future of our children.

      Time to get real again, my brothers & sisters. To wake up & use common sense…to no longer borrow from the beast that keeps us down. Print our own money. Bring back our businesses to our soil. Kick out all the illegals and make English our national language like we all know it should be. Protect our Constitution…not shred it. Stop Islam from gaining it’s foothold onto our soil like it has in Europe. Reveal the corrupt to the light of day and bring GOD back into our lives. Fiscal responcibility, constitutionally limited government and end the career polition.

      All these things will make great leaps for the security of our children and their futures. Do these things America and we’ll see the change that Patriots crave for our wonderful Republic.

      It all begins with the end of the Federal Reserve and the behind doors deals that make up the Bilderberg/Rothschild/Masonic/Illuminati Virus mechanisim that infects the body of humanity…not just here in America but all over the world.

      Yol Bolsun, my brothers & sisters. Fight the good fight.

    • olde reb

      the federal reserve SYSTEM consists of 12 FR Banks (each inc.), the FR Board of Governors (inc.), the FDIC, and several other entities. The FR Banks have been declared to be privately owned by the commercial banks, each has a Board of 9 Directors, by at least two federal district courts—for the issues that were before the courts. The FR BOG claims to be an agency of the government. It is claimed by conspiracy followers to be privately owned by Rothschilds, etc. The BOG has regulatory and supervisory authority over the FR Banks. the banks are mere franchisees.

  • http://bbiz.com BBIZ

    Amazing how quickly a discussion gets off track and turns theoretical, where no one can contest it; the ego is preserved, and the argument is still not resolved. Some factual things might get us back on track. First, the history of the world is economic, not philosophical or political. It begins and ends with buyers and sellers. If you need it you buy it. The need is based on what creates value to you. Then the seller will have a need to get it for you. This is physical supply/demand equilibrium. Then, when there is too much or too little, fluctuation occurs. When all buyer/seller chains are interconnected across the economy, if patterns change, the whole system will reflect it. There is an non-esoteric indicator published every first of the month by the Institute for Supply Management (WWW.ISM.ws) which is called the Report on Business (Manufacturing and Service).
    This index is the true index of any economic movement across the country. Two and a half years ago, buyers quit buying and sellers quit selling back when no one was buying things. The markets were in surplus, buyers had more than what they needed. Except for 911 this indicator called the PMI index has been absolutely accurate for the last 35 years since it was started. It predicts recessions,inflation, recoveries, and is viewed by most business leaders across the country and around the world. I have even see it in the “Strait Times” in China. Around 350 to 400 companies are selected by ISM to submit on-line at the end of each month the following data in an “Up-Same -Down response”. These are the parameters required: growth, hiring, prices, imports, exports, supplier deliveries, inventory levels, etc. These parameters are the true economic trading signals that move economies, and they are countable. When the indicator is above 50, meaning that there are more “ups than sames or downs” reported, that means the economy is expanding. For your information the PMI is currently above 50 and has been for 13 months. This means for the broadly selected and representative companies in most segments of American business used in the survey, we have been in a growth mode for over a year now. Industries are simply not hiring because they don’t need them yet -which is wise planning. All these large selected businesses are all using their small business suppliers to do the activities being reported in the PMI. Once you look at this Index and understand it, you will have to wonder where those bankers and the other forecasters are looking to get their data. Financial people only get their info after the month end, or most likely the quarter has closed on the books. This means they are at least 3 to 4 months late in reporting. Then they need to have typically 3 consecutive readings before they make a trend statement. This means THEY ARE ALMOST A YEAR BEHIND THE ECONOMY. How can you believe their reports. AND THEN, when they finally all agree as to where we are, they revise the numbers.
    The PMI never lies, and it is current on the first day of every month in your local newspaper business section.
    Does this make it easier to see why the FED is not needed to “control” the money supply. Business (IE. economy) can control itself, given it is left alone. Who in the heck came up with this stupid “Stimulus Package” using taxpayer money to somehow create “buying”?!! To buy what?? The buyers already had what they needed in surplus. That’s why there are no jobs being created except in the government.
    Our country (company) can only really make money by selling offshore (customer). I don’t see Obama selling offshore. Who’s doing our Marketing. You can’t sell stuff to the same people you’re borrowing from. I do see him giving away money, (Bt the way, CHINA WILL BE THE WORLDS LARGEST ECONOMIC MARKETPLACE IN THIS WHOLE NEXT CENTURY.
    We can’t grow as a country by selling to ourselves, and buying it with our own taxes. It’s like a used car company selling all its cars to its own employees for it’s income. When they quit buying, they will quit getting paid.
    Forgive me father, for I have said too much.

  • Meertman

    Part of what creates runaway inflation is printing too much money(monetizing the debt). However, the other component of this equation is interest on the debt. Ronald Reagan, in a State Of The Union Address commented on the findings of the Grace Commission stating ” Not ONE RED CENT goes to paying off the deficit, but instead goes toward paying the INTEREST on the deficit. Herein lies the KEY COMPONENT of the current problem. According to Article 1, Section 8 of the U.S. Constitution, only Congress has the power to ISSUE money(not print money)and that “money” consisted of gold and silver coin. Without getting into a discussion of gold and/or silver-backed currency versus fiat currency,if there were no debt(which creates interest) attached to the paper currency, we would POSSIBLY not have runaway inflation. Add to this the fact that the Fed creates this money out of thin air(fiat currency),the problem is rapidly compounded. If we would simply make it ILLEGAL for the Fed to charge interest on their money they created from NOTHING, the problem MIGHT correct itself, or,at least not WORSEN. If Flashman would bother to read G. Edward Griffin’s book” The Creature From Jakyll Island,instead of spewing the same old Keynsian establishment crap we hear in the financial press and MSNBC,he might actually learn something of value. But, then, the rest of his little dream world would come crashing down as well, and his bosses would no longer pay him to post liberal establishment rhetoric on this conservative blogsite.

    i

    • James

      I, essentially, agree with this. However, what this means is that all annual wage and salary raises would cease. The only reason they were there in the first place, was to keep pace with inflation. In a stable economy an employee, who does a fixed amount of work everyday, does not deserve an annual raise in pay. An employer who would give such employee an annual raise, would have to raise the price of whatever the employee was producing in order to recover his increased costs of production. These annual raises and bonuses are built into the inflationary federal reserve system.

  • http://www.goodnessmovement.com/Page14.html Barry Cooper

    I read that book, and recommend it. At the same time, I think one thing that is always necessary is to understand that in any given “them” which we want to make the object of conspiracy theory, there is almost always diversity of opinion, change of opinion, and even conflict.

    I also felt Griffin did not go far enough in his analysis. I linked on my name a series of essays I wrote following reading his book, several by Murray Rothbard, some general economic texts, and quite a bit of my own original analysis, which is what got me started in the first place. The teacup analogy is critical.

    The series ends with an actionable proposal to eradicate our national and personal debt, and replace it with a sound currency, and sound banking system.

    If anyone chooses to read the pieces, I understand I got the Prime Rate wrong, and just haven’t had time to fix it. I’m close enough for government work.

  • Irene

    Guess who got control of the Senators when the State Legislature stopped electing them??? Guess how the Fed was able to get laws passed to benefit the Fed? Guess what will happen if the 17th amendment is not declared unconstitutional?

  • atlas reborn

    hflashman I hate to burst your bubble, but you are dead wrong. In 1900 one 20 dollar gold peice would purchase at a quality mens store would buy you 1 suit,1 shirt, 1 tie, 1 pair of socks, and underware. and you would get change. if you went into brooks brothers (a quality mens store) and purchased a identical set of items it would cost you no less than 9ooo dollars. probably 15000, now when you worked back then you earned probably 2 dollars a week with no taxes. so it would take about a year and a half to get that much money. remember that you had other expenses to live. now today at an average wage of 5 dollars an hr. it would take roughfly 2000 weeks to purchase the same item. you see it does not equate as you say it does for 3 reasons. 1 the federal government did not tax the people and the states could not tax that heavy a tax on the people. 2nd a twenty dollar gold peice today is valued @ 1240 fed notes. tax 120, commision 50 added up 1420. cost of living back then was 80% today cost of living is 95%. 3 there is an emense hidden tax on the worker. fica, income, health care, insurance etc. you would be able today to save 50 cents a week to pay for that gold peice. to buy that purchase today.

    • http://?? Joe H.

      atlas,
      Remind me to NEVER shop where you do. A suit, a shirt, a tie, a pair of socks and underwear for 9000 to 15,000 dollars?!?!?!? Where the hell do you shop? Rodeo drive???I can buy all that for less than 500 dollars man!!!

  • http://yahoo henry

    all this is very interesting. In reality the system works very well. I go to work, I get paid for what I do, then use the money to buy what I want. If I work hard and spend or save my money wisely I can end up with alot of it and buy nice things. People who manipulate the money or markets should be dealt with severly. they are criminals the same as some who would beak into your house and rob you. There is nothing wrong with big corparations if they take care of their employees fairly and make good products. Profits are good not bad. It helps all companies to upgrade and modernize. The real problem is when governments take my money with excess taxes and use it the wrong way or in a wasteful way. Unions are good and bad too. (i’am a union member). Their are some ridiculos work rules out their that people get paid for that was not earned or deserved. what does it matter when in 1930 the dollar was worth a dollar and now its 80% less. I get paid 80% more. When the people really get fed up with the way things work then there will be a revolution to correct the problem.

  • Shaleena

    It is scary reading the division in even our money system among U.S. citizens. The media and those that are masters of corruption are doing a good job. In the end, it is the average person who is left holding the bag and the “elite” continue to live off our backs and misfortune. Much of this is caused by ignorance of the masses and those who refuse to care or listen. Stupid people will be the demise of this country.

    One only has to look at history to see the pattern of those who are corrupt and try to continually dupe the masses. Gee, doesn’t anyone think it is strange that Bernake would not give out the names of those who are the head of the Fed Reserve? I for one am sick of D.C. (District of Corruption) and everything and everyone connected with them and that includes the Federal Reserve. WAKE UP People! You will drag the rest of us down with you. Start to question everything and everyone and study more than one side. We are being manipulated big time. IT IS ALL ABOUT POWER, GREED, AND CONTROL OVER YOU!

    • James

      Shaleena, If everyone was aware, of the destruction of our currency, what should they do about it?

  • DaveS

    This article leaves out one BIG fact. The standard of living for the working class now, compared to before the federal reserve, is MUCH, MUCH higher.

  • hundabuxt

    I’m no economist but it seems to me that wealth is created by goods and services, largely via the manufacturing sector. Following WW2, the US emerged as the most powerful nation on earth, which possessed an immense capacity to manufacture, none of which suffered the destructive effects of war such as occurred in Europe and Asia. The GI benifits program inspired people to get educated, which elevated them into professions and higher income brackets. They bought homes, which were built by labor and they bought appliances, furniture, clothing, cars and everything desired by growing families all of which were provided by people needed to produce the raw materials through the finished product, i.e., jobs ranging from skilled through management. We had single income familys, mom stayed home and raised the kids. The world came to us for manufactured goods thus bringing forign currency into our country. We were largely energy self sufficient having built hydroelectric capacity where possible and producing hydrocarbons needed for a growing demand for refined products, more jobs. Unions grew with increased labor numbers among them the Teamsters and the like, demanding more benifits and pay as well as defending members from the ostensibly unfair attacks from management. Often the unions would threaten even the most reasonable efforts of management to dicipline a member with a crippling strike, which put unions and management in an adversarial, destructive and ultimately tragic, untenable economic position. It happened to the steel industry. It happened to the auto industry, both of which provided excellent jobs to skilled and unskilled labor. Low cost forign resources begin to emerge such as cheap cars from Japan. The Datsun, Honda, Volkswagon and even the Isetta for those of you old enough to recall these. Cheap transportation, almost disposable. Hondas first car was a square, air cooled motorcycle engine driven POS that was very popular having provided great milage for little cost. We bought thousands of these as well as other cheap goods. American manufacturing bagan to suffer the effects of imports, many of which were allowed in an inequatable trade fashon due to the millions of dollars spent on Washington DC lobbying. Bursting on the scene-political corruption and unbridled greed. America is going through a tramatic cycle. Economically we will fall from power because we make far fewer things either we or the world wants. We need thousands more Microsofts and Intels and I don’t see those on the horizon. Double digit inflation will reduce our standard of living and jobs lost will not come back, which means many will settle for lower paying jobs just to survive. Suddenly, we might see lower labor costs and even the effects of robotics, which eventually make us more competative in the world markets. We have many of the raw materials and we have energy resources within our borders if we can overcome the militant environmentalists preventing the development. The demands continue for these materials and energy. Absent development of our own resources we’re forced to import them, which has a long term adverse effect on our balance of trade and eventually we’ll not be able to afford them. Then what? Add to all of this a public schools system that is a blatent, expensive failure when juxtaposed to the product being put out by our competeing world market. Why? The NEA (National Education Association), another short sighted union obviously content with mediocrity and the status quo. This is too long and there’s much more but put in few words: we’re screwed!. The mega wealthy will become more so and we’ll be much like Mexico where there’s a vast gulf between the wealthy and the poor with little if any middle class, which is tha backbone of America.

  • Curtis S

    The federal reserve is a private cartel make no mistake about it! Control a nations money you control the people, make no mistake about that either! The soul of this nation is bought and paid for by agents who have taken the bait and are selling it to us!Our consttution is gone, and till we get the Federal Reserve out of this nation and put the power to coin money the value thereof back into the hands of congress, expect what they give us and forget about the elections as they are a joke, because both sides have taken the bait. God Bless Americia??? We should be saying, God have merecy on the USA.

  • atlas reborn

    curtis you missed one thing. we were sold out to the monied interest of the europeen countries that we saved. they dictate to us make no mistake. we need a revolution to take back america. I do not see that happening any time soon.

  • gary

    I read a lot of good information here today. You would think our gov. would get togeather several minds like yours put them in a room like jurors of a court and hashout one final way to handle a situation. HM! seam like the founding father already did that once before.
    Thanks people for your great input, well at least most of you! A tea party member.

  • Jack

    The main problem with what the Fed has done is that they issue our US currency. That, according to the US Constitution, is supposed to be the sole right of the US Treasury. Also, the Fed is a completely private institution, just like Fed/Ex.

    So the Fed issues the currency on loan to the US Treasury, backed by nothing and created out of thin air, as a debt obligation to us, and the Treasury pays to print the cash to boot, then we the people pay the debt. Nice racket if you get it……

  • jopa

    henry; I must agree that you have it exactly right.The dollar lost 80% in value but on the average wages rose about 80% so lets get on to the next topic.No gain no loss.

  • http://PersonalLibertyDigest DQuiney

    Vote for politicans who are willing to abolish the Federal Reserve. Before President Kennedy could sign Executive Order 1110, to abolish the FED and have the Treasury Dept. print its own money he was killed in Dallas, TX. .

  • Pspaay

    This article will give you an idea of what we are up against as a nation.
    The comments are really interesting. It’s still the age old battle between good and evil ever since Jesus threw the money changers out of the Temple. As the saying goes — the “love” of money is the root of all evil.
    In the case of the world, it is the power that money can buy that causes the problems. What people don’t seem to understand is that we are not any wealthier than we were 100 years ago. It just takes a lot more dollars to buy the same things now, so we have to make a lot more money to pay for things. Does that make you wealthier?
    The big difference in the world has been the technical advances which has made life easier in some ways. In many ways, ignorance is bliss. The more we know, the more dissatisfied we become with the status quo. Most people want to become “richer” so they can afford all the “good” things in life, when the good things about life are “priceless” and have no price tag. Love from family and friends, the satisfaction of a job well done, the peace of mind that comes from knowing that God loves us and forgives our sins. These are the things that make us “rich” in life. Having monetary wealth is secondary to the first. The world has their priorities turned around and that’s why it’s in such bad shape. Maybe, someday people will learn what’s “really” important.

  • olde reb

    The FRB of NY received $8.4 trillion last year from the auction of Treasury securities—OFF OF THE BOOKS–without any mention in the ANNUAL REPORT TO CONGRESS or to the public ! The Ponzi scheme Fed confiscated inflict perpetual indebtedness on society and confiscate the wealth of the people while impelling the nation to national bankruptcy. Its embezzlement ! The mathematical inevitability is at RIP OFF BY THE FEDERAL RESERVE or http://www.scribd.com/doc/48194264/rip-off-by-the-Federal-Reserve-revised

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