Friday, March 18, 2011

The call to End the Fed

On Reclaiming Our Central Bank And Monetary Policy

"Whoever controls the volume of money in any country is the master of all its legislation and commerce."
President James A. Garfield

The "Federal Reserve" is not a government institution but a private central bank owned by a handful of major banks and bond dealers. As such, it is a cartel owned, controlled, and essentially for-profit driven, not by the people of the United States but, instead, by the banking industry's ruling elite. This oligarchic setup generates the most costly, debt-based, money system and greatest conflicts of interest in the history of the world. It is a system clearly at odds with the intent of the founders of the United States of America.

Public Central Bank - Fire The Fed
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." ~Thomas Jefferson

The current banking and Wall Street crisis is a direct result of a private central bank system. We are cursed with the deliberately mis-named “Federal” Reserve which is no more than a privatized and exclusive debt-money creation system devoid of public ownership. In this so-called “independent” institution there is no public interest or power within its privately-owned, profit-seeking, system.

When the power to create our money and credit is in private hands, and based on an exclusive franchise for debt-money creation and sale of bonds at interest - as opposed to direct Treasury financing - then the entire economic and social system is set up for private profit, and debt ruin, at public expense. As history has proven, this structure is virtually guaranteed to result in endless predation, corruption, and eventual collapse at immense public expense.

The founders of this country well understood this very problem and so, in their wisdom, put the “purse powers” in the hands of the most democratic body – i.e., Congress – exactly so the people would have the right and power to vote on their monetary policy every two years, course correct their own society and economy, and escape the predictable ruin of a private debt-money system under which we have no alternative or escape.

Today, however, under a private central bank system we have no such public privilege or power. We are powerless at the hands of the real owners of the “Federal’ Reserve – i.e., the major investment banks and historic banking families both here and abroad. These are the very people and institutions who have profited, geared the structure to their endless, debt-money, advantage and proceeded to rape the system until it collapses and the public is forced to rescue and bailout the very predators and criminals at the helm. In any case, this is a society-controlling power no private entity should ever attain.

Despite the overwhelming and recurrent failures of this privatized system bailout plans are being devised by these very same bankers in order to give the “Fed” even more global powers – all to foster a pretense of regulation and eliminate any vestiges of public money powers around the world. In the midst of this crisis, our pathetic Congress – fed by corporate money and cowed by a corporate press - may well succumb to giving these expanded powers to the same group of international bankers responsible for this and every other monetary crisis.

Clearly, however, the time is ripe to fire the Fed. We must take its stock under public ownership, if for no other reason then for their ruination of the dollar, aggravating boom and bust cycles, bailout thievery, and to prevent exactly these occurrences again in the future – all of which stem from a lightly or completely unregulated, private, banking system acting to privatize profits and socialize losses. Moral hazard is endless and systemic under this oligarchic structure.

"The bank was saved but the money was ruined." ~William Gouge (1796-1863)

"You gotta start executin’ a few of those white fuckin’ bankers" ~George Carlin

The immense costs of banker bailouts today mean more bonds have to be sold, more deficit financing incurred, more commissions earned by the big bank Fed owners, more currency value ruin, and more interest payable to foreigners on our “public” debt. Interest on interest, and debt on top of debt until collapse occurs is exactly where a private central bank system always takes us - particularly within a political system driven by corporate power and money.

Nevertheless, the fact we have a private central bank called the Federal Reserve that is still taken by many economists (and those attached to their ruling-elite sponsored positions) as a virtual given is clearly perplexing at best, and devious at worst. Despite the fact the founders of this nation had seen the predations worked upon England and other countries by private central bankers today’s crop of ruling-elite sycophants continue to ignore the issue and our own Constitution’s clear mandate for public "purse powers."

"The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe." ~Abraham Lincoln

Clearly, a public central bank is a subject many go to great lengths to avoid today. In fear for their status and position they quickly poo-poo the idea - and this, as if the founders were idiots!

Yet, in this crisis, for the first time in my memory we have more people now realizing the real nature of the problem - and so considering the very idea of a public central bank and returning to a Constitutional setup. Despite the massive debt and interest set upon the public the very malady-causing institution remains private and without audits of either institution or its mega-rich and powerful owners. To complete the coup, members of its own fed-owning institutions (Goldman-Sachs, serve as “our” Treasury Secretaries in what is a massive conflict of interest and ongoing effort to forestall any public interest or power in their system.

As with any real reform, it takes outsiders to first broach the issue and then courageous legislators, journalists and media types to discuss the possibility and reach the people. But have you ever seen a debate or read a thorough discussion of a public central bank in your newspaper or in the major media?

Today the time is ripe and this seminal issue is emerging. Like Holocaust deniers, however, there are those who pretend a public central bank is somehow not possible or advisable, and so they run from the topic and even seek to punish those who pursue the issue. Yet their arguments fly in the face of those who wrote our Constitution and purposely gave the money creation powers to Congress, the people’s body – so we, the people, would not be buried in interest-bearing debt, bailout costs, and enslaved to bankers for the nation’s livelihood and advancement.

Centuries of planned "panics," depressions, and recessions - all of which have caused immense enrichment for the few and immense loss to the nation and costs to future generations - have resulted in mind-boggling levels of interest bearing debt, inflation, and currency value destruction now bringing the nation to a financial armageddon.

It is time we extricate ourselves from this costly, self-defeating, and utterly oligarchic system. Demand that your representative act, not to give greater powers to the banking elite, but to audit the owners and seek to return the "Federal" Reserve stock and powers to We, The People.

Zero Per Cent Home Loans

"Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When, through the process of law, the common people lose their homes, they will become more docile and more easily governed through the strong arm of government applied by a central power of wealth under leading financiers. These truths are well known among our principal men who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system, we can get them to expend their energies in fighting for questions of no importance. It is thus by discreet action we can secure for ourselves that which has been so well planned and so successfully accomplished." ~American's Banker Association, 1924

Ask yourself why the people of the United States would agree to charge interest on one another's home loans - the very building blocks of society? The answer is we did not, have not, and likely would not. Most importantly, we cannot implement any such salutary "barnraising" monetary policy because we no longer have ownership or control over our money creation process and this most vital of state institutions. In short, we have lost control over money creation and purse powers as bequeathed to us by the founding fathers in the Constitution of the United States.

Instead, with a private central bank, we are required to pay for our homes, as well as all our infrastructure and defense, three or four times over due to the interest costs imposed by private central bankers and their affiliated bond dealers. Interest costs alone represent the greatest of taxes paid, and the greatest of burdens passed to future generations.

Imagine, in an economy nearly seventy per-cent driven by consumers, what this tax cut, in home interest savings alone, could do to stimulate the "ownership" economy - not to mention freeing the vast majority from nearly endless house debt? In addition, to avoid early foreclosures, family breakups, and financial devastation due to job loss and "free trade" job export new, more democratically-oriented, policies might allow for longer emergency mortgage relief periods to avoid exactly such no-fault crisis and debilitating chaos.

At the same time, penalties for loan and appraisal fraud could be greatly strengthened. Otherwise home loan programs could very well continue thru existing mortgage, banking, and escrow institutions with the only difference being direct treasury funding as opposed to debt-based bonds serving the interests of the few.

For the great majority of people there is no greater tax cut possible than eliminating interest on our home loans. If we truly controlled our own government and economy such a change, and related offsetting tax code changes regarding interest deductions, would be simple and easy. First, however, to accomplish this salutary objective, and other necessary monetary system reforms, we have to end, or radically re-control, an oligarchic and undemocratic banking institution misleadingly known as the "Fed."


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