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« New Options Trading Service Launched! | Main | Federal Reserve to Buy Treasuries fires Gold Prices! »
Thursday
Mar192009

The Federal Reserve: The Greatest Scam In History (revision B)

USD chart 19mar09


We first posted this article on 13th August 2007 when it appeared to us that the US Dollar along with the economy was heading into such dangerous waters that gold would be the beneficiary. At the time gold was trading at around $670/oz and it closed yesterday at $960 for a gain of $290 or 43.2%. Yesterday was the first time that we have seen the 'C' word used as the Federal Reserve announced that it would be buying back $300 billion in longer-term Treasuries in order to assist the economic recovery. This move to buy these Treasuries is regarded by many as a last resort or a sign of panic as the turmoil in the financial markets reaches a crisis point.

Gold was languishing at the $890/oz level just prior to the announcement and then within the hour it rocketed to the $950/oz level as the news of the Feds action spread. Whether it be an article on Market Watch or a mention on the BBC World Service, news travels fast these days to every corner of the planet and investors react accordingly with startling results. A new government and a New Fed, not really, just more of the same but in increasingly larger doses. Todays action will turn out to be a defining moment for the US Dollar and recorded by historians as the beginning of its demise. Unfortunately the worst is yet to come so steel yourself for a force ten storm.

On 4th October 2008 we updated our original essay with the following excerpts;

If we fast forward to time now and read any newspaper the headlines are dominated with the fire fighting actions being implemented by the Federal Reserve with bankers and politicians in tow. From these bailouts we can only conclude that the dilution of paper money will continue with the pace of dilution accelerating, resulting in massive inflation and propelling the precious metals to higher ground. If you have the time, please read this article and then take a look at what’s happening around you and then find the time to question what you are doing and why you are doing it. Being too busy to organise your own affairs is a poor excuse. Just switch the television off for a couple of nights and clear your head, the way forward for you personally will become apparent.

FED Logo 19mar09

The Federal Reserve: The Greatest Scam In History?
This is the original essay posted on 13th August 2007

The Federal Reserve was created in 1913-1914 in order to bring stability to the economy and yet almost every major crash, including the great depression, can be attributed to the Federal Reserve.

We are going to take a look at the history of the Fed and what prominent historical figures have said about the organisation.

Firstly, from 1837-1862 there was a system of national banks in the USA but then in 1913-1914 a consortium of 12 privately held banks got together and formed the Federal Reserve Bank, an entity that is not part of the US government. These banks then purchased notes from the US Mint for printing costs and lent them out through member banks charging interest.

The Federal Reserve came into being after its supporters paid for the Presidential campaign of US President Woodrow Wilson. Wilson signed the bill that transferred the US currency to twelve regional private banks Wilson regretted his decision later saying:

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”

In 1933 President Roosevelt confiscated citizens gold and handed it to the Federal Reserve. At the very moment when Americans have needed to protect their wealth the most, the best store of wealth ever created, gold, was confiscated from American citizens and given to a un-elected conglomerate of private banks.

When the bill for the Federal Reserve was being considered, some brave politicians spoke out against its creation calling it “the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed” and Congressman Victor Murdock said, “I do not blind myself to the fact that this measure will not be effectual as a remedy for a great national evil – the concentrated control of credit.”

It even appears that one of the most important and most respected figures in American history disagrees with the Federal Reserve saying, “If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”

Jefferson also said, “I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies”
“Paper is poverty… it is only the ghost of money, and not money itself.”

The Federal Reserve make no secret about the scam they are running as the Boston section of the Federal Reserve Bank said:

“When you or I write a check there must be sufficient funds in our account to cover the cheque, but when the Federal Reserve writes a check there is no bank deposit on which that cheque is drawn. When the Federal Reserve writes a cheque, it is creating money.”

Perhaps the Fed can create money, but we strongly believe that wealth cannot be created. Wealth is simply transferred, it is not created and we challenge anyone to prove otherwise. The only time wealth was created was when the world was created, with all its resources, true wealth. So why hasn’t the Federal Reserve been disbanded?

Well as the Rothschild Brothers of London said in 1863; “The few who understand the system, will either be so interested from it’s profits or so dependant on it’s favours, that there will be no opposition from that class.”

The great Henry Ford once said “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

The problem is, very few people understand the system at all. It is not taught in schools and even some of the most prominent financial analysts and fund managers really have no idea how the system works. They tend to define inflation as rising prices when in fact inflation occurs because of the expansion of the money supply. Or even link inflation with the economy doing well, saying, “we should raise interest rates as the economy did extremely well this month and we don’t want inflation getting out of hand”, or words to that effect.

What all people, not just investors, need to understand is that paper money is worthless. Gold and precious metals are the real money, the real wealth that cannot be created like its paper ghost.

Gold has been telling us for sometime that all is not well so listen up and put at least a small part of your wealth into precious metals or their associated stocks.

Discipline is about to return to a screen near you.

Fed building 19mar 09.JPG

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Reader Comments (9)

I've known for about 10 years now how the federal reserve system works.

These international bankers, The Rothchilds,The Rockefellers and friends, who are the Illuminati, the globalists have planned this crisis, like all the other
crisis that have happened in the last 300 years. For profit and CONTROL.

This economic crisis is no accident but rather completely designed and engineered
by the ILLUMINATI.

My question is when do you believe they will collapse the system and make us beg for the new currency which they have already prepared and decided upon.

You Know... Problem / Reaction / Solution. They create the problem and have the solution to the problem they created through the reaction of the masses.

They are very cleaver and very evil.

The Rothchild's own a vast amount of GOLD and are believed to be worth an approximate 500 TRILLION DOLLARS. They can feed clothe and house every person on the planet.

They are printing Trillions and Trillions of fiat dollars... they will inflate the system
with fiat worthless paper... but since they manipulate every market, how far and how long will they keep manipulating GOLD & SILVER.

Will the COMEX ever implode as these banks, J.P. Morgan and a few others, private shareholders of the Federal Reserve... The ILLUMINATI keep manipulating!!

Why aren't more people speaking and protesting against this corruption and fraud??

I'd really like to know!!

Thank you and have a great day!

Peace and Gratitude.

March 20, 2009 | Unregistered CommenterB

"We are spending more money than we have ever spent before, and it does not work. After eight years we have just as much unemployment as when we started, and an enormous debt to boot". - U.S. Treasury Secretary Henry Morgenthau...May 1939

http://www.youtube.com/watch?v=8Pbiv1iuEes&feature=related

We are here again...

Here are which should seem familiar.

Government has no wealth of its own. Before it gives anything to anyone, it must take from those who produced it. - John Stossel

March 20, 2009 | Unregistered CommenterChuck

WHEN WILL GEORGE W. BUSH BE TRIED FOR TREASON FOR HIS WILLFUL FINANCIAL DESTRUCTION OF THE ONCE MOST PROSPEROUS LAND ON EARTH, THE ELIMINATION OF THE AMERICAN DREAM FOR THE ENTIRE MIDDLE CLASS AND HIS GIVE TO THE RICH AND SCREW THE REST POLICIES.? HE HAS ELIMINATED THE LEVERAGE RULES AND OVERSIGHT, HAS CREATED A FINANCIAL HIGHWAY USING THE BLACK MARKET FOR HUGE GAINS IN NO BID DEFENSE CONTRACTS AS YOUNG AMERICANS SUFFER AND DIE. HE HAS DESTROYED DECADES OF HARD WORK AND 401K SAVINGS SET TO SAVE RETIREMENT AFTER ELIMINATING REGULAR PENSIONS. HE WANTS US REGULAR FOLK TO WORK TILL THE DAY WE DIE. THE VARIABLE RATE FOR HOUSING KNOWING FULL WELL THEY WOULD OWN THE HOMES WHEN THE RATES RESET. THEY JUST DID NOT CONSIDER LOWER HOME PRICES. TRY BUSH FOR TREASON, WE THE PEOPLE DEMAND JUSTICE.

March 21, 2009 | Unregistered CommenterROBERT

Thats the Trouble with the world.. The court systems, Judges and Police are all in cahoots with these government bodies, bankers and the rest of it. They will NEVER be brought to court and ried. Because we the people do not demand it.

My advise. Buy some Gold Store some silver and get politically active against the fascist regime!.. Leafleat your towns, speak in the streets.. shout it out load and proud ! Were not going to take this anymore - just becareful not to get locke dup in a mental ward :-)
(Because they will try it)

March 23, 2009 | Unregistered CommenterGold Bullion Bars

Very good explanation. I have read it before and it is well worth reading again, and again, and again.

You might consider running this article periodically, just for emphasis. Heck, we need to be reminded.

Best,

March 23, 2009 | Unregistered CommenterJohn

Perhaps the Fed can create money, but we strongly believe that wealth cannot be created. Wealth is simply transferred, it is not created and we challenge anyone to prove otherwise. The only time wealth was created was when the world was created, with all its resources, true wealth.

Dear Mr Kirtley:

This is only partially correct. True wealth is only created when human beings perform a transaction. To quote from my piece "honest money" (http://www.scribd.com/doc/10046327/Honest-Money):

"...Corporations make tvs and sofas, grow genetically modified food, for humans not for abstract legal concepts and any wealth that is created can only come from the value the consumer of the product is willing to exchange for it. Which can only be meaningfully derived from how efficiently it was produced. The crucial point to grasp here is that economic value is strictly an accounting of work done at a price the market sets..."

all the best

March 23, 2009 | Unregistered CommenterF

The Federal Reserve is only a part of the' Greatest Scam'.

The greatest scam is contained in quote of Disraeli who, at the time would have been tagged by modern media ( who love 'tags') as the most powerful man in the world.

After all, he headed the government of the world's most powerful nation at that time - Great Britain which controlled an Empire upon which the sun, literally, never set.

His words of immense, and profound, revelation:-

"This world is run by far different personages than is believed by those not on the 'inside'.

Note, he did not say 'this nation' (Great Britain, and its Empire) but - THIS WORLD!

Did his revelation change the status quo? Not one bit. There have been many such insights revealed over the years.

The Fed is merely one of the tools by which they 'rule' the world, and have done for centuries. Their weapon, the greatest weapon of mass destruction ever - DEBT! You inflict the injury and death on others without losing one drop of your own blood

The greatest scam is how it was allowed to come to pass and fool the masses in not seeing the immensity of what is governing, and controlling every aspect of their lives - no matter they believe they have an elected government, or a totalitarian one.

'He who controls the gold, controls the world'

And if you don't know who that is, then you are missing the 'masterkey' that opens all the other doors to real understanding, evaluation of economic,or political events - past, and present. and will err in your prognosis of the future.

March 25, 2009 | Unregistered CommenterRay Newton

It even appears that one of the most important and most respected figures in American history disagrees with the Federal Reserve saying, “If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”

Jefferson also said, “I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies”
“Paper is poverty… it is only the ghost of money, and not money itself.”

===

Someone recently questioned the bona fides of the top paragraph quote

attributed to Jefferson on another site, so I checked it out for myself. From

two Jeffersonia scholarly sites both said he never made the statement as a

whole, and only a part of it is a very rough paraphrasing. If memory serves

from the source, the term inflation didn't exist in Jefferson's day.

Rgds

March 27, 2009 | Unregistered CommenterM

In Defence of 'quotes' in general, and the poster of No8 above in particular:-

Sometimes a quote is paraphrased in order to project the essence of the attributed statement because of words, or expressions, that have changed with time.

For example, with the quote I used by Disraeli which is from his book published in 1844 'Conningsby, the New Generation(To save, or facilitate, any researching), he uses a word which is little used today - 'personages'. We would simply use the word 'people'.

There have been occasions, when I have used it in areas I knew there would be a lot of non native English speakers, I have changed the word to 'people' to save them scurrying for their dictionaries.

I am not familiar with the authenticity of Jefferson's quote, however, I am a believer in that there is rarely smoke without some sort of fire And I know that 'bankers', who are nothing more than 'money lenders and changers', have had a less than honourable reputation for many centuries.

As for 'inflation' we know it helped to bring down the Roman Empire. What they have termed it over the years I am not certain. But the condition certainly existed at the time of Jefferson.

March 28, 2009 | Unregistered CommenterRay Newton

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