The distraction du jour is a debate on ‘Monetary Policy’. Specifically what should the FED do in regard to interest rates? The one dominant overriding FED policy is to drive the US so deeply into its debt that they have to pump daylight down to us. The only differences discussed are in the means of doing it and who among the financial elite’ benefits. The media do their part in deflecting attention from the root cause of fiscal evils which is that the FED is a private bank issuing public money. All the current intellectually dressed up discourse on banking theory and monetary policy debate is BS. In reality this is just a good ole fashion turf war with the Street crowd on the side of propped up equities and the bankers who want the toilet paper dollar doled out today to be worth more tomorrow rather than less. It’s a cute little ancillary benefit for the bankers and a stealth interest charge to the borrower ---the dollar borrowed being worth less than the dollar repaid. While the balance of power up there will rock to and fro, for the minions below feeding off the scrapes of victors table it never changes, the borrower is servant to the lender; the US is in their ---FEDs--- debt, so we are all their slaves. Right now Wall Streets biggest Godfather, Goldman Sachs CEO Hank Paulson is the Treasury Sectary of the United States, so guess who’s in charge? Yup the Street is and the US dollar rolling over under resistance of 80 on the USDX being well on its way into the dirt.
It was in 1913 that J P Morgan and John Rockefeller fronting for bankers Maynard Rothschild and Paul War-burg succeeded in establishing the federal reserve system of the United States or the FED. The FED is a private bank which holds secret meetings ---see Mission Impossible--- to determine the nation’s fate. Its business plan is to seize the constitutional authority to issue money from congress and become the sole issuer of the nation's money. The result is a new business plan for Uncle Sam, which is debt. That is instead of issuing or using his own money to pay for things uncle Sam will borrow the money from the FED at interest whether he needs to or not. If you or I ran a business that way what would they us? CRAZY! Oh and by the way the money the FED lends to Sam comes from nothing, right out of thin air. HOW? When Sam saunters up to the FED window to borrow the bank doesn’t crank up the press and print more dollars, no way. The fed gives Sam an electronic credit for the desired sum and that is it. Now Sam must pledge tangible collateral for the debt he incurs, that collateral being the income tax, a regressive tax on the real producers of the nation's wealth the workers. But the bank only promises to remove the accounting entry once the debt is paid. What would we be called if we did business that way? CRIMINALS its FRAUD. But it is and that is all that counts.
Actually the process described above is how it works with you and me private people, the regular Sams. Money we borrow from the bank or Credit Card Company comes from nothing. Shocking, but simple, so simple that a construction worker can figure it out so, the bankers now more con artists and criminals than financiers cloak the simple money making scam behind high powered banking jargon and hyped up hyper complicated sounding economic BS.
A synopsis of the mechanics of the debt driving process is:
1. Sam sells bonds to the FED,
2 .The FED buys the bonds with money outta nowhere
3. The bonds mature and Sam sells more bonds to the FED to pay back the maturing ones.
The only thing that gets paid off on the money that never needed to be borrowed in the first place is the interest via the income tax on the citizens. Now that's Ponzi capitalism par excellence.
---In fact the 16th amendment was fraudulently passed in the infamous year 1913--
So Why war, Why welfare, Why moon shots, Why Debt? Because FED. One the FED is the nation’s bank and bankers profit from the issuance of debt. But mainly because the borrower is slave to the lender; the US is in their ---FEDs--- debt, so we are all their slaves.
Any other debate is smoke. The heated media made debates about should they (the FED) stop inflation, or protect the economy is worse than worthless, its distraction.
Here is an example. The pretense of this article is to criticize the FED for lowering interest rates in favor of the Street gang. It divides the audience into two camps battling over an irrelevant issue. The true issue is simply that the FED should not exist. Anything else is distraction. Then there is a video showing the Good Cop Bad Cop routine between a true Street mouthpiece Steve Liesman and someone I want to like but just don’t trust Rick Santelli with Barry Ritholtz of fusion IQ.
Mission Impossible Link: http://www.stockmarketimplode.com/2007/11/mission-impossible.html
Video Link: http://www.cnbc.com/id/15840232?video=627092831
Article Link:http://seekingalpha.com/article/61614-fed-s-folly-fooled-by-flawed-futures?source=side_bar_editors_picks
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