[arete]

. . . read the Federal Reserve Act, place it against the context of the historical background and we come smack to the realization that the Federal Reserve System although it parades around looking as though it's a government operation of some kind, is merely a cartel of banks right under our noses and it is protected by law.

We've all heard that these loans are backed by the full faith and credit of the US government. They're not quite sure what that means but it sure sounds good. I'd like to explain for you who are in doubt what that means. The full faith and credit of the US government means that the government solemnly promises to pay back that loan plus interest if it has to take everything you and I have in the form of taxes in order to do it, it's going to do it. It will take everything we have if necessary to hold its pledge. People don't realize that they're putting themselves on the line, they're going to get their own money back minus a substantial handling fee.

Congress has even discussed what anything costs, it's not an issue. It doesn't make any difference what the cost is because regardless of the overrun they know they can go down the street to the Federal Reserve and by law the officer has to write that big check and give it to them and they're off and running.

I wish I had a magic checkbook like that where I could just write checks all day long and didn't have to have any money any place just checks, loan it to you folks and you're silly enough to pay me interest on it. That's how it works.

when the bank loans you money which it created out of nothing, it cost nothing to make it, it wants something from you. It wants you to sign on the dotted line and pledge your house, your car, your inventory, your assets so that in case for any reason you cannot continue to make your payments they get your marbles, they get all of your assets. They're not going to lose anything on this. Whether it's expansion or contraction, inflation or deflation the banks are covered and we like sheep go right along with it because we haven't figured it out, we don't know that this is a scam. Of course we have no choice either right now because it's all enforced by law. We have no escape.

I can assure you that you know more about the Federal Reserve than you would probably if you enrolled in a four year course in economics because they don't teach this reality in school.

people will tolerate taxes up to about 40-43% and then they start digging in their heels and they just won't allow it to go any further. But with the central bank mechanism in place the lid was off. Now these governments could tax their people 50%, 60%, 70% and in some cases 80% of everything they produced and they did not have a revolt on their hands. They did not have resentment because the people didn't know that they were paying a tax.

Interesting and very accurate rant regarding the FED.

You may also wish to read this article -- Fractional Reserve Banking

Here is a graphic which illustrates how the currency is being debased even as we are told that taxes are being cut.

Richard W.

[arete]

Roger Arnold addresses the Barron's interview with Hugh Hendry on his shows.

Yesterday's Roger Arnold Show

Today's Roger Arnold Show

Happy New Year Everyone!!

Richard W.

[Servant of the 9]

The Federal Reserve is incapable of accomplishing its stated objectives.

The Fed has accomplished all its objectives since '29.
It has prevented another crash and kept the monetary system functioning.

You forgott the Tin Foil Hat Alert"

So9

[HighRoadToChina]

bUMP FOR LATER

[PistolPaknMama]

Quite fascinating article. Thanks for posting!

[vpintheak]

Great info. I have found out that this topic is extremely hard to talk to people about though. They can't seem to get their minds around the FACT that this is a system used to make the banks wealthy, and the government knocking at your door for their "fair share" of your money.

[arete]

For those of you who don't regularly follow the Mogambo Guru --

"The dollar must collapse, forecasts Mr. Duncan, because it will become impossible for the U.S. to continue to sell one-half trillion dollars worth of debt securities each year (the amount required to offset the trade deficit) for very much longer, because foreigners, who are obviously a real stupid bunch of people, are not so stupid that they will never get smart enough to stop doing it."

"Now this is the place where I take exception to that, as the great advantage of a fiat currency is that we don't have to sell nuthin' to nobody, much less a bunch of debt. We can print up all the money we want, anytime we want. We can have so much money floating around that we can retire the entire national debt in one stroke if we want. However, the resultant monetary inflation will, of course, filter through to inflation in prices, and then all the poor people start starving to death and getting uppity, and commerce falls to zero as everyone is afraid to go to the mall and have to wade through mobs of angry, homicidal people."

A Lesson in Inflation

Richard W.