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« The Federal Reserve: No Change to Rates for an Extended Period | Main | The Big Dead-Cat Bounce »

The Federal Reserve: The Greatest Scam in History (revision C) the Yellen Effect

Janet Yellen.JPG

Janet L. Yellen appears to be the favourite to replace Don Kohn, the outgoing vice-chairman at The Federal Reserve Board, an appointment that does not surprise us, however, her resume is a smorgasboard of academia without even a hint of a proper job.

This resume belongs to a person who went to school, then to university as a student and then back to university. This is the resume of an overgrown school kid who has spent a lifetime acquiring many academic certificates from educational institutions along the way and stayed in the academic world pontificating on whatever took her interest.

Now, unless you consider working for the Federal Reserve as a stint in the private sector, this lady has no experience whatsoever in working or running a real business. A mirror image of Ben Bernanke she has never mustered the courage to venture into the private sector and implement her theories for the benefit of an organization battling to survive and grow in the private sector.

Her theories remain unproven outside of the classroom and as they have remained theoretical only, there isn't the hard won experience in the real world to support and give credit to her words. Every corporation and indeed every person in the United States of America will be and are being affected everyday by the actions of The Federal Reserve Board, the governance of which is entrusted to people who have never fixed so much as a wing nut to a Ford motor car.

Helicopter Ben has said that he will run the money printing presses for as long as it takes and now he has the assistance of Janet L. Yellen to shovel the money out of the doors in the belief that more money is the solution to a debt laden nation. The political courage to suck money out of the economy just does not exist as unemployment is high and the economy is fragile and will remain so for sometime to come. Should a double dip recession appear on the horizon then the drunk will be given yet another drink, well it almost worked in Zimbabwe.

Please forgive us for being old cynics as we cannot see anything in this resume to boost our confidence. This is her resume as published by The Federal Reserve Bank of San Francisco, if we have missed a proper job then please correct us.

Janet L. Yellen took office as President and Chief Executive Officer of the Federal Reserve Bank of San Francisco on June 14, 2004. As a member of the Federal Open Market Committee, Dr. Yellen fully participates in the meetings and brings her District's perspective to policy discussions in Washington.

Dr. Yellen is Professor Emeritus at the University of California at Berkeley where she was the Eugene E. and Catherine M. Trefethen Professor of Business and Professor of Economics and has been a faculty member since 1980.

Dr. Yellen earlier took leave from Berkeley for five years starting August 1994 when she served as a member of the Board of Governors of the Federal Reserve System through February 1997, and then left the Fed to become Chair of the Council of Economic Advisers through August 1999. She also chaired the Economic Policy Committee of the Organization for Economic Cooperation and Development from 1997 to 1999.

Dr. Yellen became a member of The Group of 30 in September 2009. She also serves on the executive committee of the Bay Area Council and is a member of the Council on Foreign Relations and the American Academy of Arts and Sciences. Dr. Yellen is a research associate of the National Bureau of Economic Research and has served as president of the Western Economic Association and vice president of the American Economic Association. She was also a Fellow of the Yale Corporation.

Dr. Yellen graduated summa cum laude from Brown University with a degree in economics in 1967, and received her PhD in Economics from Yale University in 1971. She received the Wilbur Cross Medal from Yale in 1997, an honorary Doctor of Laws degree from Brown in 1998, and an honorary Doctor of Humane Letters from Bard College in 2000.

An Assistant Professor at Harvard University from 1971 to 1976, Dr. Yellen served as an economist with the Federal Reserve’s Board of Governors in 1977 and 1978, and on the faculty of the London School of Economics and Political Science from 1978 to 1980.

Dr. Yellen has written on a wide variety of macroeconomic issues, while specializing in the causes, mechanisms and implications of unemployment.

The Federal Reserve: The Greatest Scam in History (revision B)
posted on the 20th March 2009.

USD Chart 18 March 2009.JPG

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.

The Federal Reserve: The Greatest Scam In History?

The Fed Res Logo 15 March 2010.JPG

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.

The Fed Building 15 March 2010.JPG

All the best.

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Reader Comments (20)

What nobody has addressed is how does one use gold/silver in leiu of money, if it is worthless? If a dollar is worthless how does one pay for necessities in life? All the gold in our safe is also worthless unless we can find somebody to accept at a resonable exchange rate.

March 15, 2010 | Unregistered CommenterKen Wirtz

END THE FED! It's either us or them. Getting rid of the banking cartel (criminal conspiracy) is the cardinal issue of our time.

March 15, 2010 | Unregistered Commenterfallingman

Mr. Wirtz....I would respectfully suggest that you wouldn't be using gold or silver "in lieu of money.' Gold and silver ARE money. We've just become accustomed to thinking of peachbacks as actual money and the metals as mere commodities. Undertandably so in times of relative calm, because we traded the clownbucks for what we needed and they've worked passably well our whole lives. But they won't work at all as money when confidence in them disappears, which it almost certainly will. "Money" that doesn't reliably function as a store of value in good times and bad is funny money, not to be trusted.

To rephrase, you'd be using real money in lieu of a defunct, unbacked state-mandated paper CURRENCY, an IOU which is a poor imitation of money, performing only some of the roles money needs to perform and performing those pretty poorly in the best of times...and abysmally when push comes to shove.

How well gold and silver would function as money in a monetary crisis is the real question and a good one. I hope we don't find out, but I never count on hope. I suspect not very well at all if all you have are 100 oz gold bars. But one ounce and quarter oz coins should be readily tradable for things of considerable value in a barter-like economy. Silver dimes and quarters should work nicely for smaller, less valuable items.

That said, as many have pointed out. food, and items such as whiskey, cigaretters , toilet paper, fuel, basic necessities and desirable consumer goods that are easily tradable...may serve you as well or even better in trading for the stuff you need.

Commerce won't stop. It'll just have to be transacted more clumsily through trading. After all, people need things. Given that bartering is a nuisance, you can bet your bottom Maple Leaf that some form of money or several will spontaneously emerge to function as a medium of exchange to facilitate transactions. Guess what has been chosen to fill that role by countless cultures for thousands of years.

Will precious and semi-precious metals, whose supply, unlike the clownbuck, is strictly limited, be the choice again this time? Who knows? But it's a likely as anything, because they work so well as money.

Yeah, you can't eat gold, but gold and silver...and copper...can be traded for food and, if we're not in the terminal stages of the meltdown where prices are going up by the hour or minute, you can convert enough metal to currency to buy what you need and hold the rest in a safe place as a store of value for when order returns, which it always far.

Bigger point: You need a viable medium of exchange for the crisis period, but far more importantly, you need a STORE OF VALUE for after the dust settles and paper assets have been wiped out and they hit the reset button. At that point, if they haven't incarcerated or killed you for being a subversive or stolen your metals stash, you win the game of survival in a world gone crazy and get to rebuild with something rather than nothing.

Lucky you.

March 15, 2010 | Unregistered Commenterfallingman

Well documented writing. Thank you

March 15, 2010 | Unregistered CommenterSilverFox

I wonder what would happen if each state decided to print their own fiat currency? How could the fed prevent it without violating anti-trust laws? Screw them. I think the states should try it, with a good team of anti-trust lawyers to defend their decision.

March 15, 2010 | Unregistered Commenter3rd worlder

I wish more people would talk about the need for government created, interest-free money.

What we have is an emergency.

That is, interest rates which are much higher than productivity.

The coming crises will be all about correcting this problem.

For those interested, checkout my article. Thanks.

Lance Owen

March 15, 2010 | Unregistered CommenterLance Owen

The problem is that when the dollar crashes, when the Euro evaporates the damn BANKS will be right there to "save" us. The Pols will either be too stupid or bought and paid for and will welcome a new world currency and a new world order - all controlled once again by you know who.

March 15, 2010 | Unregistered CommenterDAVE-Y

As long as there is any bank still functioning in the US or any other country in the coming days, gold and silver will be only something to be used to hold that worthless funny money down to not blow away in the category 10 storm being predicted. When push comes to shove when the dollar is known to be worthless and unable to be used for daily commerce all that gold and silver will be following right along with the paper. The PTB have this all figured out about those that would use the backing of gold and silver for obtaining the items needed for living, and they are not about to let that slide by. New laws will be put into affect against those that would buck the new system these PTB's are attempting to put into place over the multitudes world wide. Everything happening around us is not just something that is happening by mere chance. All things are being done by design for an evil purpose and that evil is coming at all of us faster then any of us can do something to get out of the way. You can read that in this article. Mentioning the name of Rothschild is the first clue that evil is intended to keep those that would use a barter system from doing so. A barter system would be saying to them that they are not in control of all of humanity as their goal is. Therefore, as mentioned above, laws will be put into affect to keep those people who would barter from doing so. When the dollar is gone from the public use to purchase these creatures have their next evil move fully ready to implement onto the world stage. Everyone knows about crimes in the theft of paper money. Crimes of identity theft and using someone's stolen credit card. The demise of the dollar is the only way to move the people from a paper cash to the card... But, because of the theft of those cards the next move would be the chip in the arm. Whatever you do, never, never allow yourself to put into a corner where those that work for these creatures will force a chip to be put under your skin or that of your family members. As you might of read already, the National ID Card is their next major move. A card for those that are still able to be part of the US work force. A card with all of your info chipped on it. Even your sexual preference. This ID card is the reason that our US borders are wide open.That is the only way it would be accepted by US citizens, so jobs would go to those eligible. Even if any of you have gold and silver to barter with, can you keep it from those that would take it from you? There goes the hand gun law out the window that would give you a fighting chance to keep it. This is where the push and shove comes into play. When people are pushed to do something they would not even think to do today just to stay alive and to keep their family from starving, those PTB creatures will be adding new laws to not let anyone have anything to be hoarded, whatever it could be. They want total control. So if you think to be independent and support yourself contrary to their agenda for you, I hope you dug a good size hole to hide away in when those that want you riches come to take it away or those that work for the creatures come to take you away for being contrary to the new laws.

March 15, 2010 | Unregistered CommenterJames

Edward Wray writes: It might be refreshing for a moment to back away from all the Sturm und Drang of the Dirtbag economics chaos and return to a simpler time when Andy might have said to Opie, "Do you see that! That's a silver coin boy, and ifin you save enough of these in your piggy bank, you might just get out of Mayberry and become a famous movie director. Really Pa?"

So, if we suspend disbelief for a bit, and accept the radical proposition that "Money is something of value which can be used as a medium of exchange", then it stands to reason that we need to determine how best to go about establishing what substances or items might best serve our needs for exchanging value.

In many different societies throughout the history of planet Earth, all kinds of things have been designated as "Coin of the Realm." On the island of Yap stone disks with a hole in the middle, called Rai and several other names, according to size and other parameters such as appearance, age and history, were used as money; A bit cumbersome, but still in use to this day for some transactions.

Shells and beads (wampum), precious and semi-precious stones, cows, humans, birds and almost anything you can think of have been used for money. Most notably though, Gold and Silver have been used, along with copper, bronze and iron tokens.

How does all this relate to our current circumstances? Well, we are presently learning the difference between tangible assets like gold, land, food, housing and transportation, and the sleazy application of double-speak documentations which are attached like leeches to our chattels which corrupt their uses and damage the concept of ownership (as if property tax were not enough).

The appearance, scarcity, malleability and usefulness of gold and silver made them valuable in the minds of humans. To this day we have witness to that from those who should know, such as "Former US Federal Reserve Chairman Alan Greenspan [who] once argued, before the advent of monetarism, [otherwise known as "Voodoo Economics" which he helped to create] that:" – [Wiki]

"under the gold standard, a free banking system stands as the protector of an economy's stability and balanced growth-- The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit... In the absence of the gold standard, there is no way to protect savings from confiscation through inflation."[

As we all know, A.G. was made an offer he couldn't refuse, and went along to get along when the progenitors of fiscal chaos began to accelerate their plan of debt fabrication and currency esoterics by getting their greedy hooks into unsuspecting citizen's lives. Unrepentant freebooters and privateers began to run amok behind the walls of financial institutions nesting in huge piles of crisp new ferns and breeding like flies. They concocted every conceivable ruse and sham to build a vast web of interlocking, highly cosmetic instruments with which to surgically remove any hope of sanity in the world of finance and equity.

Today's upheavals are nothing new when it comes to the deadly combination of greed, good and bad intentions and unintended consequences. The race is neck-and-neck to see who can do the most damage to the security and freedom of all Humanity.

This passage, attributed to Lord Alexander Tyler, pretty much explains how we got to where we are today:

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship. The average age of the world's great civilizations has been two hundred years. These nations have progressed through the following sequence: from bondage to spiritual faith, from spiritual faith to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency from complacency to apathy, from apathy to dependency, from dependency back to bondage."
- Lord Alexander Tyler on the fall of the Athenian republic

Do-gooder socialists and so-called humanitarians throw money, food, housing and whatever else they can find (or extract from taxpayers at the point of a gun) to assist the "less fortunate" [lazy]. From what was supposed to be temporary assistance, huge entitlement programs arose like poisonous mushrooms overnight, robbing people of their self-sufficiency and making single parent homes a profit center.

By the way, what is your definition of royalty? My definition of royalty is any person or family who are by reason of birth, or bestowed title, given a complete, and sometimes luxurious livelihood from the kingdom of their nativity without having to work for said gratuities. Excuse the h**l out of me, but doesn't it say in Article One, Section Ten of the U.S. Constitution that:

No State shall - grant any Title of Nobility.

What's the difference? Doesn't entitlement mean to "bestow a title?" They are, after all, sometimes referred to as "Welfare Queens." So millions of Americans have been declared to be titled and are supported in the manner to which their royal station in life befits. Truly, even municipalities such as San Francisco bestow a monthly stipend ($410) on those who claim to be homeless. Now anyone with a speck of compassion would like to help others in need and there is an associated social work component, but that does not necessarily justify the means.

Private charities used to deal with this problem almost exclusively and taxpayers were not fleeced by government brigands to involuntarily participate. The most eloquent refutation of these activities comes from the life of Colonel David Crockett the famed explorer and member of Congress; to wit:

One day in the House of Representatives, a bill was taken up appropriating money for the benefit of a widow of a distinguished naval officer. Several beautiful speeches had been made in its support. The Speaker was just about to put the question when Crockett arose:

"Mr. Speaker--I have as much respect for the memory of the deceased, and as much sympathy for the sufferings of the living, if suffering there be, as any man in this House, but we must not permit our respect for the dead or our sympathy for a part of the living to lead us into an act of injustice to the balance of the living. I will not go into an argument to prove that Congress has no power to appropriate this money as an act of charity. Every member upon this floor knows it. We have the right, as individuals, to give away as much of our own money as we please in charity; but as members of Congress we have no right so to appropriate a dollar of the public money. Some eloquent appeals have been made to us upon the ground that it is a debt due the deceased. Mr. Speaker, the deceased lived long after the close of the war; he was in office to the day of his death, and I have never heard that the government was in arrears to him.

Every man in this House knows it is not a debt. We cannot, without the grossest corruption, appropriate this money as the payment of a debt. We have not the semblance of authority to appropriate it as a charity. Mr. Speaker, I have said we have the right to give as much money of our own as we please. I am the poorest man on this floor. I cannot vote for this bill, but I will give one week's pay to the object, and if every member of Congress will do the same, it will amount to more than the bill asks."

He took his seat. Nobody replied. The bill was put upon its passage, and, instead of passing unanimously, as was generally supposed, and as, no doubt, it would, but for that speech, it received but few votes, and, of course, was lost. (Compiled by Edward S. Ellis)

Colonel Crockett's explanation to a friend as to why he rejected the bill:

Is one of the most beautiful stories of how a man comes to understanding through the offices of civil discourse with one of his constituents. Please read this dialogue between Crockett and a farmer named Horatio Bunce. No other conversation, from the Federalist Papers to our Constitutional Convention, is a better example of the purity of thought and ethical courage.

If I could speak with Colonel Crockett, I would repeat what I said here as a closing statement last time we met on I bade you all farewell with these words:

"I am honored that you would take the time to share your insights. For me, the greatest freedoms are to think (imagine) and share. In all the galaxies of time and space, the comfort of friendly discourse is the Golden Rule of existence. The most valuable works of man are not the material wonders he hath wrought; more admirable still is the gift of mutual understanding."

When a star explodes in a supernova at the end of its thermonuclear life, it blasts forth into the universe all manner of elements which eventually coalesce into new stars and planets. A current model of the universe states that heavier elements are formed in the cores of stars in a succession of supernovae. Starting with stars which are almost exclusively helium and hydrogen, a progression of explosions and reformation, of a certain number, eventually produce the range of elements we find listed on the periodic chart of basic elements.

Human bodies are made of star stuff. Gold and Silver are cosmic gifts to us from the hundred million degree crucibles in the dark matter void. Whether the universe is an electric hologram or the more mundane milieu they are researching at CERN, we have Gold and Silver as two of the things we currently value on Planet Earth.

Economists have argued back-and-forth about the advisability of attempting to use gold and silver directly or as backing for a nation's certificated commerce. There are two banking systems being formed at this time which are attempting to answer the need for global financial stability. One of the banks will be 100% on the gold standard. The other "bank" will operate on stored value (debit card) using a hack proof, heavily encrypted RFID core. Hopefully this bank will implement arbitrage of any deposits depending, of course, on whether there are different sovereign currencies in the foreseeable future.

This author believes that a possibility exists wherein the right people, who are responsible and honest, can manage a global, gold and silver based system of value exchanges. It may seem kinda simplistic, but it sounds better than the current situation. It all has much to do with communication and instant completion of equity transfers.

As the fiber optic grid supplants the internet and yet another explosion of changes accelerates historical velocity, humans will be tasked to find a way to buy and sell without the necessity for slight-of-hand, usury or hidden agendas. Don't hold your breath. There are some really sick puppies loose on the globe and they are dangerous beyond belief.

The main problem is the pliability of human consciousness. Whether informed or not concerning basic ethics, or history not best repeated, humans can be corrupted with disturbing ease. From birth to death we are all susceptible to psychological mutation given the right circumstances.

Young children are pliable, impressionable and susceptible to the most egregious cabalistic inculcations. Every human is a potential Manchurian Candidate who might think nothing of fantastic cruelty and destruction under the "right" circumstances. Psychological studies have shown that even in role play scenarios college students will become subservient "prisoners" who are horribly "abused" by the "guards" in settings where situational ethics are allowed to flow freely.

The Stanford Prison Experiment was a prime example of isolation ethics, where under the right conditions, the subjects will kill to satisfy the proctor in order to get a good grade.

From the eightieth floor of an office building in Manhattan, a group of corporate executives sitting around an oak table occasionally glance out the window at the "ants" passing below and think, "It's good to be the account manager" or "I love my golden parachute" or "I'm coming for you suckers."

It would appear that we are living in a time where the ultimate global greedsters may play out their sick, monopolistic fantasies as they blindly stumble through the dark, labyrinthine underworld their fathers and brothers led them to believe was good. Against these carnivorous beasts, who are the true vampires so well parodied in 1930s movies, normal, hard working humans have little defense. Look into their eyes as they rail against honesty, charity, compassion, ethics and filial love. Perhaps this caution may cause in them the slightest hesitation allowing us to just barely escape their clutches:

"Indeed I tremble for my country when I reflect that God is just." - Thomas Jefferson


"But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime." - Frederic Bastiat, The Law

By Edward Wray Morehouse

© 2008 Copyright Edward Wray Morehouse- All Rights Reserved

March 15, 2010 | Unregistered CommenterEDWARD MOREHOUSE

BTW...JUST ONE MORE THING..."Money is someTHING of VALUE Which can be used as a MEDIUM OF EXCHANGE." THINGS, like gold, silver, Volvos, hamburgers and cattle have VALUE as a result of only two factors: 1. How hard was it to do? (human effort) - mine that gold, build that auto, raise that cow...and...2. What's it good for? - drive the auto (transportation), eat the cow, (nutrition...etc). That's it!! Not complicated unless you are a financial engineer who is fond of "Three Card Monty" , shell games, credit default swaps, hollow derivatives and other forms of criminal finance.

The lords of FIAT CURRENCY who "rent" worthless bills to the nations for economic commerce, are the heirs of the money changers in the temples who were unceremoniously thrown out in the street. These present day usurers deserve to be severely punished and a Jubilee declared as the common man is set free to practice hard work and honesty. One is hard pressed to perceive the slightest difference between these avaricious clones and Satan himself.

March 15, 2010 | Unregistered CommenterEDWARD MOREHOUSE


(March 12) -- Widely regarded as one of the most important of all the founding fathers of the United States, Thomas Jefferson received a demotion of sorts Friday thanks to the Texas Board of Education.

The board voted to enact new teaching standards for history and social studies that will alter which material gets included in school textbooks. It decided to drop Jefferson from a world history section devoted to great political thinkers.

March 15, 2010 | Unregistered CommenterGold Prices

What may occur is a repeat of historical pogroms. Hate to say it but the "bankers" have done this to us all before.
It is one thing to screw around with a few banks (by the super-powerful Central banks) and buy a few politicians. When you (hedge funds controlling hundreds of billions of dollars) threaten to bring countries down, short their bond issues or boycott them entirely because you CAN it's an whole new game. If you drive a sovereign country into bankruptcy with the resultant societal chaos, it should be viewed as an act of WAR.
I Hate to side with any one politician especially an "ex" (ha!) communist wanna-be dictator like Putin but right now he seems to be the one and only Politician out there who has the balls to loose a bunch of "wet works" operatives on some bank execs just to show them they don't OWN the entire world - yet.
If the chaos of sovereign debt collapse does happen and is directed at the ones responsible then we'll see another bloodbath where a whole bunch of bankers who happen to be of one faith are sent to their maker. If it isn't directed it will just be chaos and the pols will ask the bankers to save them. Disgusting. I'm not putin (getit?) my money of the reaction which makes the most amount of sense but time will tell.

March 16, 2010 | Unregistered CommenterDAVE-Y

If America follows the Zimbabwe course,will Ecuador, also on the dollar currency,go down the same path? At one time prior to Ecuador switching to the dollar currency,Ecuador was charging 72% for their mortgage loans? Now the country of Ecuador as well as Argentina,appear to have worked its way out of their quagmire and they are fiscally doing ok?

March 16, 2010 | Unregistered Commenterazalea

In May the world's economies will completely collapse-suddenly without any warning-in November there will be full out nuclear war-eventually you will be taken to other planets-converted into robot slaves-computerized monsters because you do not evolve-you do the opposite-soon beyond any point of return, thank the Banks for that-they have insured that you separate from God and love forever. Human beings could never image living without money or barter-in a society based on love-where all the resources of earth belong to all equally-where all work together to provide each other with the necessities to survive. Where the destruction of life is unthinkable. When you do finally meet with angelic evolved beings-it will not be as one of them-you will be separate entities-slaves who can not think for yourselves-harmless to them-as you are now-you are the enemies of all life-especially your own.

March 16, 2010 | Unregistered Commenterjenchen

“Over time, whoever controls the money system controls the nation.”

The money issuing power should never be alienated from democratically elected government and placed into private hands as it is in America in the Federal Reserve System today. Most people would be surprised to learn that the bulk of our money supply is not created by our government, but by private banks when they make loans. Through the Fed’s fractional reserve process the system creates “money” when banks make loans into accounts; so most of our money is issued as interest-bearing debt.

March 16, 2010 | Unregistered CommenterSusan

Hate to say it, but I'm afraid James...#8 above...has nailed it. If anything is gonna save your bacon, it's gold, silver, property, etc. held in various jurisdictions, but I, too, can see the handwriting on the wall.

Unless the Rothschild/Cecil Rhodes/JPMorgan/Rockefeller banker/military industrial combine can be effectively exposed and blasted to hell, which is pretty unlikely, we're doomed to endure the creep toward a fascist world government and a return to virtual serfdom. And that creep will likely become a sprint when this monetary crisis unfolds in full flower.

Hell, they create these crises so they can wrest more power and control from a frightened public. These things don't happen by accident. Then they're always there to "save us" from the chaos. And we become even more dependent and controlled.

ID cards. chips...this ain't some paranoid fantasy. They really really want a cashless society with privacy wiped out. Think about it. That way they can see everything...and control everything.

As chuck D said, "You gotta fight the gotta fight the powerz that be." Or dodge 'em. Good luck to all of you.

I don't know if it's too late, but it sure feels like it. These guys play a very vicious and calculated game extremely effectively against a disorganized opposition. I don't like the odds.

March 16, 2010 | Unregistered Commenterfallingman

Gold has no practical value. Not even used to repair teeth anymore. Put 5% down and speculate on any commodity even if you have no intention to produce it, provide it, or actually take it. Keep the speculators out of the commodity markets or make them pay 100% down and take any that they purchase just like ALL OTHER MARKETS where you order and receive or would be in the courts and jails.

Nazi Germany Spies Hatched The First Family

March 16, 2010 | Unregistered CommenterJon Carlson

gold no practical value? Are you crazy? If gold wasn't so expensive, which it is because of its many uses and rarity, it would be the most used metal in existence. The thing that makes it so expensive and coveted is that it is so useful. Everything metal would be made of gold because it isn't corruptible. Wouldn't you like all the metal things you use to stay beautiful and last forever?
Think before you write next time.

March 16, 2010 | Unregistered CommenterMichael

Simply put.. for what gold if any we have left in the united states needs to go back to the most common practice of money management, money backed gold,silver,bronze etc of it's worth. I believe that was the way it was first introduced before the reserve was crimnally past.. money of any kind be it paper etc has to be backed by something of it's worth not just plucked from out of no where and pushed into an already jacked up hard is this to understand I mean really!

March 18, 2010 | Unregistered Commenterunderstood

Doesnt the Patriot Act open the possibility to criminalize future payments/commerce trading in gold and coinage?

If theses perpetrators were Muslim instead of primarily jewish like those raping our system are, there would be NO WAY any of this terrorism would be allowed.

WAKE UP people to the real underlying issue here.

March 23, 2010 | Unregistered CommenterShosh

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