Donald Trump Is Right – Here Are 100 Reasons Why We Need To Audit The Federal Reserve

By Michael Snyder, The Economic Collapse blog.

Donald Trump - Photo by Marc NozellWhen one of our major politicians gets something exactly right, we should applaud them for it.  In this case, Donald Trump’s call to audit the Federal Reserve is dead on correct.  Most Americans don’t realize this, but the Federal Reserve has far more power over the economy than anyone else does – including Barack Obama.  Financial markets all over the planet gyrate wildly at the smallest comment from Fed officials, and virtually every boom and bust cycle over the past 100 years can be traced directly back to specific decisions made by the Federal Reserve.  We get all excited about what various presidential candidates say that they “will do for the economy”, but in the end it is the Fed that is holding all of the cards.  The funny thing is that the Federal Reserve is not even part of the federal government.  It is an independent private central bank that was designed by very powerful Wall Street interests a little over 100 years ago.  It is at the heart of the debt-based financial system which is eating away at America like cancer, and it has no direct accountability to the American people whatsoever.

The Fed has been around for so long that most people assume that we need it.

But the truth is that we don’t actually need the Federal Reserve.  In fact, the greatest period of economic growth in United States history happened during the decades before the Federal Reserve was created.

A little over 100 years ago, very powerful forces on Wall Street successfully pushed for the creation of an immensely powerful central bank, and since that time the value of the U.S. dollar has fallen by about 98 percent and our national debt has gotten more than 5000 times larger.

The Federal Reserve does whatever it feels like doing, and Fed officials insist that the institution must remain “independent” and “above politics” because monetary policy is too important to entrust to the American people.

To me, this is absolutely ridiculous.  Everything else, including our national defense, is subject to the normal political process, and yet the decisions made by the Fed are so “important” that the American people can’t have a voice?

It is high time that the American people begin to learn what the Federal Reserve is really all about, and that can start with a full, comprehensive audit of all of the Federal Reserve’s activities.  Yesterday, Donald Trump came out in favor of such an audit…

Previously, Trump has made quite a few comments that were very critical of the Fed.  For example, last year he told Bloomberg News that he believed that the Federal Reserve was “creating a bubble”…

“In terms of real estate, if I want to develop … from that standpoint I like low interest rates. From the country’s standpoint, I’m just not sure it’s a very good thing, because I really do believe we’re creating a bubble.”

And of course Trump was exactly right about that too.  By pushing interest rates to artificially low levels and creating billions upon billions of dollars out of thin air during the quantitative easing era, stock prices were driven to ridiculously high levels.  Now that the artificial support has been withdrawn, stocks are beginning to crash, and the financial collapse which is starting to happen is going to be far worse than it otherwise would have been because of the Fed’s actions.  The following comes from one of my previous articles

As stocks continue to crash, you can blame the Federal Reserve, because the Fed is more responsible for creating the current financial bubble that we are living in than anyone else.  When the Federal Reserve pushed interest rates all the way to the floor and injected lots of hot money into the financial markets during their quantitative easing programs, this pushed stock prices to wildly artificial levels.  The only way that it would have been possible to keep stock prices at those wildly artificial levels would have been to keep interest rates ultra-low and to keep recklessly creating lots of new money.  But now the Federal Reserve has ended quantitative easing and has embarked on a program of very slowly raising interest rates.  This is going to have very severe consequences for the markets, but Janet Yellen doesn’t seem to care.

I don’t understand why so many Americans continue to support the Federal Reserve.

We don’t need a bunch of central planners setting interest rates and determining monetary policy.  We are supposed to have a free market system, and the free market should be setting interest rates – not the Federal Reserve.

Unfortunately, just about every nation on the entire planet now has a central bank.  Even though the nations of the world can’t agree on much, somehow central banking has been adopted virtually everywhere.  At this point, more than 99.9% of the population of the world lives in a country that has a central bank.

There are still some minor island countries such as the Federated States of Micronesia that do not have a central bank, but the only major nation not to have one right now is North Korea.  And nobody in their right mind would ever want to live there.

So how in the world did this happen?

Did the people of the world willingly choose this debt-based system or was it imposed upon them?

To my knowledge, there has never been a single vote where the population of a nation has willingly chosen to establish a central bank.  I could be wrong about this, but I have never heard of one.

It is the elite that have always wanted central banking, and now they pretty much have the entire planet in their grasp.

That is why we should applaud Donald Trump when he stands up to the elite.  And it isn’t just regarding the Fed that he has done this.  The following comes from an excellent article that was just written by Dan Lyman

Ultimately, Trump knows it is the global elite who have pried our borders wide open. He knows it is THEY who are responsible for the tens of millions of Third Worlders pouring into our nations. He knows that THEY are the monsters who need the world to be constantly at war. He knows THEY are radically altering our food supply with GMOs and poisonous chemicals. He knows THEY are responsible for poisoning our drinking water, filling our skies and air supplies with toxic waste, genociding our unborn children, collecting data on all citizens to implement the Orwellian police state, forcing poison into our babies’ veins – and soon the rest of us, redistributing what remains of our wealth under the guises of ‘saving the planet’ or ‘refugee aid,’ allowing and funding the ISIS Islamofascists to decimate places like Syria and Iraq in Satanic fashion, promoting the psychotic LGBT Nazis to goose-step all over our religious liberties and gender-privacy in school bathrooms. If there is a societal cancer metastasizing somewhere, it can usually be traced back to the same sources.

Yes, there are many things that we can criticize Trump and the other Republican candidates for.  But when they nail something, we should be willing to admit that they got something right.

In this case, Donald Trump is absolutely correct to call for an audit of the Fed.  As I promised in the title of this article, I want to share 100 reasons why the Fed should be audited.  The following list has been adapted from one of my previous articles

#1 We like to think that we have a government “of the people, by the people, for the people”, but the truth is that an unelected, unaccountable group of central planners has far more power over our economy than anyone else in our society does.

#2 The Federal Reserve is actually “independent” of the government. In fact, the Federal Reserve has argued vehemently in federal court that it is “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.

#3 The Federal Reserve openly admits that the 12 regional Federal Reserve banks are organized “much like private corporations“.

#4 The regional Federal Reserve banks issue shares of stock to the “member banks” that own them.

#5 100% of the shareholders of the Federal Reserve are private banks. The U.S. government owns zero shares.

#6 The Federal Reserve is not an agency of the federal government, but it has been given power to regulate our banks and financial institutions. This should not be happening.

#7 According to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”. So why is the Federal Reserve doing it?

#8 If you look at a “U.S. dollar”, it actually says “Federal Reserve note” at the top. In the financial world, a “note” is an instrument of debt.

#9 In 1963, President John F. Kennedy issued Executive Order 11110 which authorized the U.S. Treasury to issue “United States notes” which were created by the U.S. government directly and not by the Federal Reserve. He was assassinated shortly thereafter.

#10 Many of the debt-free United States notes issued under President Kennedy are still in circulation today.

#11 The Federal Reserve determines what levels some of the most important interest rates in our system are going to be set at. In a free market system, the free market would determine those interest rates.

#12 The Federal Reserve has become so powerful that it is now known as “the fourth branch of government“.

#13 The greatest period of economic growth in U.S. history was when there was no central bank.

#14 The Federal Reserve was designed to be a perpetual debt machine. The bankers that designed it intended to trap the U.S. government in a perpetual debt spiral from which it could never possibly escape. Since the Federal Reserve was established 100 years ago, the U.S. national debt has gotten more than 5000 times larger.

#15 A permanent federal income tax was established the exact same year that the Federal Reserve was created. This was not a coincidence. In order to pay for all of the government debt that the Federal Reserve would create, a federal income tax was necessary. The whole idea was to transfer wealth from our pockets to the federal government and from the federal government to the bankers.

#16 The period prior to 1913 (when there was no income tax) was the greatest period of economic growth in U.S. history.

#17 Today, the U.S. tax code is about 13 miles long.

#18 From the time that the Federal Reserve was created until now, the U.S. dollar has lost 98 percent of its value.

#19 From the time that President Nixon took us off the gold standard until now, the U.S. dollar has lost 83 percent of its value.

#20 During the 100 years before the Federal Reserve was created, the U.S. economy rarely had any problems with inflation. But since the Federal Reserve was established, the U.S. economy has experienced constant and never ending inflation.

#21 In the century before the Federal Reserve was created, the average annual rate of inflation was about half a percent. In the century since the Federal Reserve was created, the average annual rate of inflation has been about 3.5 percent.

#22 The Federal Reserve has stripped the middle class of trillions of dollars of wealth through the hidden tax of inflation.

#23 The size of M1 has nearly doubled since 2008 thanks to the reckless money printing that the Federal Reserve has been doing.

#24 The Federal Reserve has been starting to behave like the Weimar Republic, and we all remember how that ended.

#25 The Federal Reserve has been consistently lying to us about the level of inflation in our economy. If the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.

#26 Since the Federal Reserve was created, there have been 18 distinct recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.

#27 Within 20 years of the creation of the Federal Reserve, the U.S. economy was plunged into the Great Depression.

#28 The Federal Reserve created the conditions that caused the stock market crash of 1929, and even Ben Bernanke admits that the response by the Fed to that crisis made the Great Depression even worse than it should have been.

#29 The “easy money” policies of former Fed Chairman Alan Greenspan set the stage for the great financial crisis of 2008.

#30 Without the Federal Reserve, the “subprime mortgage meltdown” would probably never have happened.

#31 If you can believe it, there have been 10 different economic recessions since 1950. The Federal Reserve created the “dotcom bubble”, the Federal Reserve created the “housing bubble” and now it has created the largest bond bubble in the history of the planet.

#32 According to an official government report, the Federal Reserve made 16.1 trillion dollars in secret loans to the big banks during the last financial crisis. The following is a list of loan recipients that was taken directly from page 131 of the report…

Citigroup – $2.513 trillion
Morgan Stanley – $2.041 trillion
Merrill Lynch – $1.949 trillion
Bank of America – $1.344 trillion
Barclays PLC – $868 billion
Bear Sterns – $853 billion
Goldman Sachs – $814 billion
Royal Bank of Scotland – $541 billion
JP Morgan Chase – $391 billion
Deutsche Bank – $354 billion
UBS – $287 billion
Credit Suisse – $262 billion
Lehman Brothers – $183 billion
Bank of Scotland – $181 billion
BNP Paribas – $175 billion
Wells Fargo – $159 billion
Dexia – $159 billion
Wachovia – $142 billion
Dresdner Bank – $135 billion
Societe Generale – $124 billion
“All Other Borrowers” – $2.639 trillion

#33 The Federal Reserve also paid those big banks $659.4 million in “fees” to help “administer” those secret loans.

#34 During the last financial crisis, big European banks were allowed to borrow an “unlimited” amount of money from the Federal Reserve at ultra-low interest rates.

#35 The “easy money” policies of Federal Reserve Chairman Ben Bernanke have created the largest financial bubble this nation has ever seen, and this has set the stage for the great financial crisis that we are rapidly approaching.

#36 Since late 2008, the size of the Federal Reserve balance sheet has grown from less than a trillion dollars to more than 4 trillion dollars. This is complete and utter insanity.

#37 During the quantitative easing era, the value of the financial securities that the Fed has accumulated is greater than the total amount of publicly held debt that the U.S. government accumulated from the presidency of George Washington through the end of the presidency of Bill Clinton.

#38 Overall, the Federal Reserve now holds more than 32 percent of all 10 year equivalents.

#39 Quantitative easing creates financial bubbles, and when quantitative easing ends those bubbles tend to deflate rapidly.

#40 Most of the new money created by quantitative easing has ended up in the hands of the very wealthy.

#41 According to a prominent Federal Reserve insider, quantitative easing has been one giant “subsidy” for Wall Street banks.

#42 As one CNBC article stated, we have seen absolutely rampant inflation in “stocks and bonds and art and Ferraris“.

#43 Donald Trump once made the following statement about quantitative easing: “People like me will benefit from this.

#44 Most people have never heard about this, but a very interesting study conducted for the Bank of England shows that quantitative easing actually increases the gap between the wealthy and the poor.

#45 The gap between the top one percent and the rest of the country is now the greatest that it has been since the 1920s.

#46 The mainstream media has sold quantitative easing to the American public as an “economic stimulus program”, but the truth is that the percentage of Americans that have a job has actually gone down since quantitative easing first began.

#47 The Federal Reserve is supposed to be able to guide the nation toward “full employment”, but the reality of the matter is that an all-time record 102 million working age Americans do not have a job right now. That number has risen by about 27 million since the year 2000.

#48 For years, the projections of economic growth by the Federal Reserve have consistently overstated the strength of the U.S. economy. But every single time, the mainstream media continues to report that these numbers are “reliable” even though all they actually represent is wishful thinking.

#49 The Federal Reserve system fuels the growth of government, and the growth of government fuels the growth of the Federal Reserve system. Since 1970, federal spending has grown nearly 12 times as rapidly as median household income has.

#50 The Federal Reserve is supposed to look out for the health of all U.S. banks, but the truth is that they only seem to be concerned about the big ones. In 1985, there were more than 18,000 banks in the United States. Today, there are only 6,891 left.

#51 The six largest banks in the United States (JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley) have collectively gotten 37 percent larger over the past five years.

#52 The U.S. banking system has 14.4 trillion dollars in total assets. The six largest banks now account for 67 percent of those assets and all of the other banks account for only 33 percent of those assets.

#53 The five largest banks now account for 42 percent of all loans in the United States.

#54 We were told that the purpose of quantitative easing was to help “stimulate the economy”, but today the Federal Reserve is actually paying the big banks not to lend out 1.8 trillion dollars in “excess reserves” that they have parked at the Fed.

#55 The Federal Reserve has allowed an absolutely gigantic derivatives bubble to inflate which could destroy our financial system at any moment. Right now, four of the “too big to fail” banks each have total exposure to derivatives that is well in excess of 40 trillion dollars.

#56 The total exposure that Goldman Sachs has to derivatives contracts is more than 381 times greater than their total assets.

#57 Federal Reserve Chairman Ben Bernanke has a track record of failure that would make the Chicago Cubs look good.

#58 The secret November 1910 gathering at Jekyll Island, Georgia during which the plan for the Federal Reserve was hatched was attended by U.S. Senator Nelson W. Aldrich, Assistant Secretary of the Treasury Department A.P. Andrews and a whole host of representatives from the upper crust of the Wall Street banking establishment.

#59 The Federal Reserve was created by the big Wall Street banks and for the benefit of the big Wall Street banks.

#60 In 1913, Congress was promised that if the Federal Reserve Act was passed that it would eliminate the business cycle.

#61 There has never been a true comprehensive audit of the Federal Reserve since it was created back in 1913.

#62 The Federal Reserve system has been described as “the biggest Ponzi scheme in the history of the world“.

#63 The following comes directly from the Fed’s official mission statement: “To provide the nation with a safer, more flexible, and more stable monetary and financial system.” Without a doubt, the Federal Reserve has failed in those tasks dramatically.

#64 The Fed decides what the target rate of inflation should be, what the target rate of unemployment should be and what the size of the money supply is going to be. This is quite similar to the “central planning” that goes on in communist nations, but very few people in our government seem upset by this.

#65 A couple of years ago, Federal Reserve officials walked into one bank in Oklahoma and demanded that they take down all the Bible verses and all the Christmas buttons that the bank had been displaying.

#66 The Federal Reserve has taken some other very frightening steps in recent years. For example, back in 2011 the Federal Reserve announced plans to identify “key bloggers” and to monitor “billions of conversations” about the Fed on Facebook, Twitter, forums and blogs. Someone at the Fed will almost certainly end up reading this article.

#67 Thanks to this endless debt spiral that we are trapped in, a massive amount of money is transferred out of our pockets and into the pockets of the ultra-wealthy each year. Incredibly, the U.S. government spent more than 415 billion dollars just on interest on the national debt in 2013.

#68 In January 2000, the average rate of interest on the government’s marketable debt was 6.620 percent. If we got back to that level today, we would be paying more than a trillion dollars a year just in interest on the national debt and it would collapse our entire financial system.

#69 The American people are being killed by compound interest but most of them don’t even understand what it is. Albert Einstein once made the following statement about compound interest…

Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

#70 Most Americans have absolutely no idea where money comes from. The truth is that the Federal Reserve just creates it out of thin air. The following is how I have previously described how money is normally created by the Fed in our system…

When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.

Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.

The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.

#71 What does the Federal Reserve do with those U.S. Treasury bonds? They end up getting auctioned off to the highest bidder. But this entire process actually creates more debt than it does money…

The U.S. Treasury bonds that the Federal Reserve receives in exchange for the money it has created out of nothing are auctioned off through the Federal Reserve system.

But wait.

There is a problem.

Because the U.S. government must pay interest on the Treasury bonds, the amount of debt that has been created by this transaction is greater than the amount of money that has been created.

So where will the U.S. government get the money to pay that debt?

Well, the theory is that we can get money to circulate through the economy really, really fast and tax it at a high enough rate that the government will be able to collect enough taxes to pay the debt.

But that never actually happens, does it?

And the creators of the Federal Reserve understood this as well. They understood that the U.S. government would not have enough money to both run the government and service the national debt. They knew that the U.S. government would have to keep borrowing even more money in an attempt to keep up with the game.

#72 Of course the U.S. government could actually create money and spend it directly into the economy without the Federal Reserve being involved at all. But then we wouldn’t be 17 trillion dollars in debt and that wouldn’t serve the interests of the bankers at all.

#73 The following is what Thomas Edison once had to say about our absolutely insane debt-based financial system…

That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.

Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.

#74 The United States now has the largest national debt in the history of the world, and we are stealing roughly 100 million dollars from our children and our grandchildren every single hour of every single day in a desperate attempt to keep the debt spiral going.

#75 Thomas Jefferson once stated that if he could add just one more amendment to the U.S. Constitution it would be a ban on all government borrowing

I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.

#76 At this moment, the U.S. national debt is sitting at $18,141,409,083,212.36. If we had followed the advice of Thomas Jefferson, it would be sitting at zero.

#77 When the Federal Reserve was first established, the U.S. national debt was sitting at about 2.9 billion dollars. On average, we have been adding more than that to the national debt every single day since Obama has been in the White House.

#78 We are on pace to accumulate more new debt during the 8 years of the Obama administration than we did under all of the other presidents in all of U.S. history combined.

#79 If all of the new debt that has been accumulated since John Boehner became Speaker of the House had been given directly to the American people instead, every household in America would have been able to buy a new truck.

#80 Between 2008 and 2012, U.S. government debt grew by 60.7 percent, but U.S. GDP only grew by a total of about 8.5 percent during that entire time period.

#81 Since 2007, the U.S. debt to GDP ratio has increased from 66.6 percent to 102.98 percent.

#82 According to the U.S. Treasury, foreigners hold approximately 5.6 trillion dollars of our debt.

#83 The amount of U.S. government debt held by foreigners is about 5 times larger than it was just a decade ago.

#84 As I have written about previously, if the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.

#85 If Bill Gates gave every single penny of his entire fortune to the U.S. government, it would only cover the U.S. budget deficit for 15 days.

#86 Sometimes we forget just how much money a trillion dollars is. If you were alive when Jesus Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now.

#87 If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.

#88 In addition to all of our debt, the U.S. government has also accumulated more than 200 trillion dollars in unfunded liabilities. So where in the world will all of that money come from?

#89 The greatest damage that quantitative easing has been causing to our economy is the fact that it is destroying worldwide faith in the U.S. dollar and in U.S. debt. If the rest of the world stops using our dollars and stops buying our debt, we are going to be in a massive amount of trouble.

#90 Over the past several years, the Federal Reserve has been monetizing a staggering amount of U.S. government debt even though Ben Bernanke once promised that he would never do this.

#91 China recently announced that they are going to quit stockpiling more U.S. dollars. If the Federal Reserve was not recklessly printing money, this would probably not have happened.

#92 Most Americans have no idea that one of our most famous presidents was absolutely obsessed with getting rid of central banking in the United States. The following is a February 1834 quote by President Andrew Jackson about the evils of central banking…

I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. You tell me that if I take the deposits from the Bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out and, by the Eternal, (bringing his fist down on the table) I will rout you out.

#93 There are plenty of possible alternative financial systems, but at this point all 187 nations that belong to the IMF have a central bank. Are we supposed to believe that this is just some sort of a bizarre coincidence?

#94 The capstone of the global central banking system is an organization known as the Bank for International Settlements. The following is how I described this organization in a previous article

An immensely powerful international organization that most people have never even heard of secretly controls the money supply of the entire globe. It is called the Bank for International Settlements, and it is the central bank of central banks. It is located in Basel, Switzerland, but it also has branches in Hong Kong and Mexico City. It is essentially an unelected, unaccountable central bank of the world that has complete immunity from taxation and from national laws. Even Wikipedia admits that “it is not accountable to any single national government.” The Bank for International Settlements was used to launder money for the Nazis during World War II, but these days the main purpose of the BIS is to guide and direct the centrally-planned global financial system. Today, 58 global central banks belong to the BIS, and it has far more power over how the U.S. economy (or any other economy for that matter) will perform over the course of the next year than any politician does. Every two months, the central bankers of the world gather in Basel for another “Global Economy Meeting”. During those meetings, decisions are made which affect every man, woman and child on the planet, and yet none of us have any say in what goes on. The Bank for International Settlements is an organization that was founded by the global elite and it operates for the benefit of the global elite, and it is intended to be one of the key cornerstones of the emerging one world economic system.

#95 The borrower is the servant of the lender, and the Federal Reserve has turned all of us into debt slaves.

#96 Debt is a form of social control, and the global elite use all of this debt to dominate all the rest of us. 40 years ago, the total amount of debt in our system (all government debt, all business debt, all consumer debt, etc.) was sitting at about 3 trillion dollars. Today, the grand total is approaching 60 trillion dollars.

#97 Unless something dramatic is done, our children and our grandchildren will be debt slaves for their entire lives as they service our debts and pay for our mistakes.

#98 Now that you know this information, you are responsible for doing something about it.

#99 Congress has the power to shut down the Federal Reserve any time that it would like. But right now most of our politicians fully endorse the current system, and nothing is ever going to happen until the American people start demanding change.

#100 The design of the Federal Reserve system was flawed from the very beginning. If something is not done very rapidly, it is inevitable that our entire financial system is going to suffer an absolutely nightmarish collapse.

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  • Votes on the 2015 Audit the FED Bill (SOURCE: TRUTH IN MEDIA)

    The Federal Reserve Transparency Act of 2015 failed to advance on Tuesday. While the Senate voted 53-44 in favor of the bill, sixty votes were required for the bill to move forward. The full roll call showing how each U.S. Senator voted can be seen below.

    YEA: 53

    Alexander (R-TN)

    Ayotte (R-NH)

    Baldwin (D-WI)

    Barrasso (R-WY)

    Blunt (R-MO)

    Boozman (R-AR)

    Burr (R-NC)

    Capito (R-WV)

    Cassidy (R-LA)

    Cochran (R-MS)

    Collins (R-ME)

    Cornyn (R-TX)

    Cotton (R-AR)

    Crapo (R-ID)

    Daines (R-MT)

    Enzi (R-WY)

    Ernst (R-IA)

    Fischer (R-NE)

    Flake (R-AZ)

    Gardner (R-CO)

    Graham (R-SC)

    Grassley (R-IA)

    Hatch (R-UT)

    Heller (R-NV)

    Hoeven (R-ND)

    Inhofe (R-OK)

    Isakson (R-GA)

    Johnson (R-WI)

    Kirk (R-IL)

    Lankford (R-OK)

    Lee (R-UT)

    McCain (R-AZ)

    McConnell (R-KY)

    Moran (R-KS)

    Murkowski (R-AK)

    Paul (R-KY)

    Perdue (R-GA)

    Portman (R-OH)

    Risch (R-ID)

    Roberts (R-KS)

    Rounds (R-SD)

    Rubio (R-FL)

    Sanders (I-VT)

    Sasse (R-NE)

    Scott (R-SC)

    Sessions (R-AL)

    Shelby (R-AL)

    Sullivan (R-AK)

    Thune (R-SD)

    Tillis (R-NC)

    Toomey (R-PA)

    Vitter (R-LA)

    Wicker (R-MS)

    NAY: 44

    Bennet (D-CO)

    Blumenthal (D-CT)

    Booker (D-NJ)

    Boxer (D-CA)

    Brown (D-OH)

    Cantwell (D-WA)

    Cardin (D-MD)

    Carper (D-DE)

    Casey (D-PA)

    Coons (D-DE)

    Corker (R-TN)

    Donnelly (D-IN)

    Durbin (D-IL)

    Feinstein (D-CA)

    Gillibrand (D-NY)

    Heinrich (D-NM)

    Heitkamp (D-ND)

    Hirono (D-HI)

    Kaine (D-VA)

    King (I-ME)

    Klobuchar (D-MN)

    Leahy (D-VT)

    Manchin (D-WV)

    Markey (D-MA)

    McCaskill (D-MO)

    Menendez (D-NJ)

    Merkley (D-OR)

    Mikulski (D-MD)

    Murphy (D-CT)

    Murray (D-WA)

    Nelson (D-FL)

    Peters (D-MI)

    Reed (D-RI)

    Reid (D-NV)

    Schatz (D-HI)

    Schumer (D-NY)

    Shaheen (D-NH)

    Stabenow (D-MI)

    Tester (D-MT)

    Udall (D-NM)

    Warner (D-VA)

    Warren (D-MA)

    Whitehouse (D-RI)

    Wyden (D-OR)

    Not Voting: 3

    Coats (R-IN)

    Cruz (R-TX)

    Franken (D-MN)

  • Here is the original audit on the ‘FED’ and was inserted into the ‘FAUX’ bailout bill by Ron Paul and Bernie Sanders as well as a handful of others.

    Highlights of GAO-11-696, a report to congressional addressees

    July 2011 The Fed Audit GAO (Government Accountability Office) report Of the Federal Reserve

    http://www.gao.gov/new.items/d11696.pdf

    They are all just rearranging the deck chairs and faces now and everything will still remain the same as they continue with all of the distractions!

    • Already Got that!! HA!! I

      And if we remember, AND WE SHALL and MUST KNOW and REMEMBER that “they,” these greasy little narcissistic nitwit reptilian monkey-brained primate…That “THEY” are actually hilarious and amusing to watch carefully…And before you know it:

      AH!! Why, they are simply Grotesque Little Idiot-caricatures of some kind of beyond-dumb cow-pricks flailing wildly to get to the front of the slop-trough and roll around in their own FILTH!

      So…

      Why is it that I laugh?

      Because this BREED of Idiot-Humans really are so fucking Stupid that it is INSANE!!

      So!! Let ’em have their filthy lucre;

      Watch em roll around in it for a while…

      Until they can all wipe their asses with it…

      Interesting experiment: Throw a ton of money at the dumb human animal and watch the show…
      CM

      Now for a few recent favorite Quotes:

      “A hydrogen bomb is an example of mankind’s enormous capacity for friendly cooperation. Its construction requires an intricate network of human teams, all working with single-minded devotion toward a common goal. Let us pause and savor the glow of self-congratulation we deserve for belonging to such an intelligent and sociable species.”
      ~Robert S. Bigelow, 1969, The Dawn Warriors

      “Some days, it’s just not worth chewing through the leather straps.”
      ~Emo Phillips

      “To most of us nothing is so invisible as an unpleasant truth. Though it is held before our eyes, pushed under our noses, rammed down our throats – we know it not.”
      ~ Eric Hoffer

      “In a time of universal deceit, telling the truth is a revolutionary act.”
      – George Orwell

      “When fascism comes to America, it will come in the form of democracy.”
      ~Huey Long

      AND…

      GORE VIDAL:

      “I exist to say, ‘No, that isn’t the way it is,’ or ‘What you believe to be true is not true for the following reasons.’ I am a master of the obvious. I mean, if there’s a hole in the road, I will, viciously, outrageously, say there’s a hole in the road and if you don’t fill it in you’ll break the axle of your car. One is not loved for being helpful.”

      “It is not enough to succeed. Others must fail.”

      “Any American who is prepared to run for president should automatically by definition be disqualified from ever doing so.”

      “Every time a friend succeeds, I die a little.”

      “The United States was founded by the brightest people in the country — and we haven’t seen them since.”

      As societies grow decadent, the language grows decadent, too. Words are used to disguise, not to illuminate, action: you liberate a city by destroying it. Words are to confuse, so that at election time people will solemnly vote against their own interests.

      “Our form of democracy is bribery, on the highest scale.

      “How we dare even prate about democracy is beyond me. Our form of democracy is bribery, on the highest scale. It’s far worse than anything that occurred in the Roman empire, until the praetorian guard started to sell the principate. We’re not a democracy, and we have absolutely nothing to give the world in the way of political ideas or political arrangements. God knows, the mention of justice is like a clove of garlic to Count Dracula.”

      “Write something, even if it’s just a suicide note.”

      ~ Gore Vidal

      And MORE:

      If you want to tell people the truth, make them laugh,

      otherwise they’ll kill you.

      ~Oscar Wilde

      “Good intentions, like mother’s milk, are a perishable commodity. As wealth accumulates, men decay, and sooner or later an aristocracy that once might have aspired to an ideal of wisdom and virtue goes rancid in the sun, becomes an oligarchy distinguished by a character that Aristotle likened to that of ‘the prosperous fool’ — its members so besotted by their faith in money that ‘they therefore imagine there is nothing that it cannot buy.’”
      ~Lewis Lapham, Feast of Fools,

      A society driven mainly by selfish individualism has all the potential for sustainability of a collection of angry scorpions in a bottle.
      ~ David Ehrenfeld

      “[The Chicago School of Economics is] a great center of contemporary scholasticism. The economists working there and produced by it are as important to the stagnation of useful thought as the Schoolmen of the University of Paris were at the height of the Middle Ages… Like that of the Paris scholastics, their mastery of highly complex rhetorical details obscures a great void at the centre of their argument… A large number of America’s economic problems could be solved by shutting down the Chicago School of Economics… The purpose of closure would be simply to disentangle a tendentious ideology from its unassailable position within contemporary power structures. The same sort of liberating shock treatment was applied to European civilization in 1723 when the Society of Jesus (Jesuits) was disbanded. The effect was to set free the ideas of the Enlightenment.”
      ~John Ralston Saul

      “Great spirits have always encountered violent opposition from mediocre minds…”
      ~Albert Einstein

      A question that sometimes drives me hazy: am I or are the others crazy?
      ~Albert Einstein

      “We have come to be one of the worst ruled, one of the most completely controlled governments in the civilized world – no longer a government of free opinion, no longer a government by… a vote of the majority, but a government by the opinion and duress of a small group of dominant men.”
      ~Woodrow Wilson on the Federal Reserve.

      A lifetime of happiness! No man alive could bear it: it would be hell on earth.
      ~George Bernard Shaw

      “Goddamned you all, I told you so.”
      ~H.G. Wells
      CM

      More thoughts about the majority of residents of Santa Barbara, California

      You are all truly ghastly and obscene in you barbarism; Witness you dregs of humanity, disgusting and reptilian in your bloated and worthless nothingness.

      Try again.

      Are you sure that you want to just give us all the same tired old runaround? Again? To send us to a few more “agencies” that are just as criminally corrupt as you are? I mean, bought off
      completely, Lock, stock and barrel, by your corporate whoremasters and your Billionaire and Trillionaire buddies in the banks and on Wall Street…Who bank roll You? Really…
      Go fuck yourselves.CM

      So…It’s LAUGHABLE that each and every one of these miserable little parasites forever residing in our totally failing government, certainly do cling onto their taxpayer-funded “free rides” for decades, if not an entire lifetime. Freeloading parasites, the whole rotten lot of them.

      Why do we, the TAXPAYERS, have to foot every last bill for these humps to live so well while the rest, i.e. those NOT in government, are forced to pay HUGE SUMS OF MONEY to criminal cabals such as the thoroughly fraudulent racket called “health care insurance,” a SCAM of EPIC proportions;

      So, why are WE all forced to pay for all of them???
      After all, they are all contemptible FAILURES, Yet THEY get free lifetime health care, not to mention every thing else under the sun, including insider trading, etc., etc., etc.;

      Just as they have the nerve to deny us, the taxpayers, the same.

      I want my money back!!! ALL OF IT!!!

      AND:

      In a very long line of abhorrent and abject failure coupled with

      impudent and disgusting abuses of power on every conceivable level,

      spanning over decades, and all culminating in the current disastrous

      state of affairs, and even the very destruction of this country, these

      HACKS, the government “employees” STILL see nothing wrong.

      Indeed, these brazen employees even somehow see fit to pay themselves

      more and more, even and just as they cut more and more programs of

      social uplift for the common good.

      This is simply criminal and totally contemptible; therefore THEY are simply criminal and totally contemptible.

      A recent thought that I’ll put here, directed at solely and pointedly at the GUILTY “ones,”

      those voters who already know damned well of their own guilt, but persist in total denial of facts, truth;

      and those idiot-politicians who continue their idiot-ego games in their idiot campaigns of idiot-self-aggrandizement and other total nonsense.

      Indeed!! Americans certainly do enjoy their decadence!!

      Even more, American decadence–no matter the form–is so readily and so easily available, and offered up in so many varieties!!

      The indicators are many in this “American Decadence;”

      Smug, swaggering, Self-satisfied;

      Arrogant; PROUD;

      Self Righteous, Sanctimonious;

      100% IGNORANT

      100% BRAINWASHED

      100% DANGEROUS

      Typical? Yes, Very. Welcome to America!!

      Yet once it becomes clear to our populace that at the very center, the very core of all

      aforementioned traits that betray fundamental STUPIDITY.

      That we are merely witnessing the tertiary stages of the intentional and highly successful program,

      the thorough Stupidification of Today’s American-Idiot population

      and we all realize that LIES beget MORE LIES.

      And at the very foundation of these unique American traits, is the most backward kind of ignorance;

      And It is not an ignorance from a simple void of information;

      It is an astonishing depth of ignorance that has certainly been so thoroughly achieved.

      Misinformation, outright lies and pure propaganda is hardly an accident.

      Wising up, first it becomes laughable in a demented way, the very atrociousness; It also induces a fervent desire to wipe the collective slate clean and begin anew…Tabula Raza.

      So!! To all citizens ANY WHERE enjoying this hideous spectacle of BLOAT and DECAY in Real Time….

      Can anyone say “OVERTHROW?”

      CM

      BOYCOTT WAR to Help us All here in America…To some how rid ourselves of this ILLEGAL, IMMORAL, unwieldy and FILTHY BEAST…To overthrow this astonishingly impudent Criminal Conspiracy…

      YES!! The entire Corporate Takeover of our government and our world is complete.

      And those dictating the shots MUST BE STOPPED. I am, incidentally opposed to the Death Penalty in America, but “THEY,” the criminal gangsters in the criminal cartels, every rotten one of them, will be the ONE EXCEPTION as they are simply so reprehensible and so utterly inhuman…Public Tribunals followed by Public Executions may be what we can term JUSTICE.

      I hope to god that there will come a day when the poor men and women in the U.S. Military will just tell their “commanders” to go F___ themselves.

      Indeed, the TIME is NOW.

      OUR dear soldiers are used as nothing but cannon fodder by the filthiest and most despicably venal

      cabal that has enthroned itself to unchecked power and has indeed perpetuated all American Wars since WWII; That’s continual American Invasions, Occupations, Coups, World WAR, for more than 70 years. LOOK IT UP.

      PLEASE!! Wake the fuck up!! NOW is the TIME.

      To every single soldier still engaged in this most dangerous combat,

      stuck in hell and far from home; and fighting solely on behalf of the [HORRIBLE LITTLE PRICKS] stingy, rapacious, wealthy assholes that do not give a FUCK about ANY of YOU;

      To You Soldiers who forever fight the same endless, needless, heinous,

      atrocious Wars of American Aggression for THEM;

      To the soldiers who are blown to bits, arms and legs blown off, brains splattered or irreparably damaged, paralyzed, dead, or worse;

      To those Soldiers who DO make it back home ALIVE,

      Only to find that each of you are then summarily left to die anyway

      Scraping at the pavement of the hospital parking lot after having been

      refused medical treatment at the local VA…AGAIN.

      So, To All of OUR Brothers and Sisters, OUR Soldiers with all

      your your brains scrambled and most of your limbs blown off;

      On behalf of the most sadistic and criminally insane American Dictators who want nothing BUT non-stop Wars of Aggression, Invasion and permanent Occupation

      in order to PROFIT and still STEAL other sovereign nations resources;

      And every time, THEY send YOU.

      So, Now?

      TELL THEM TO GO FIGHT THEIR OWN FILTHY WARS.

      ALL SOLDIERS MUST REFUSE. SIMPLY SAY NO, FUCK NO.

      Our collective “Freedoms” [to be imprisoned in cement blocks or to be locked in Debt Servitude to Criminal Bankers];

      Our “Liberties” [to be THE most backward, uncivilized, uneducated, indeed the most unenlightened society on earth];

      And our, um, “Democracy?”

      It is ALL a LIE!!

      WAKE the HELL UP!!!

      STOP FIGHTING THEIR WARS!!!!!

      BOYCOTT WAR!!!!

      SAY NO!!!

      Also, Re: FCC FYI

      Dear Ms. Clyburn,

      The costs of the building of the entire telecommunications infrastructure, including the WWW internet infrastructure, have been paid in full by the taxpayers.

      The FCC is a government agency; It was formed to regulate the telecommunications industry, the corporations within that industry, and to respond to corporate abuses on behalf of the Taxpaying public.

      So, tell me, Ms. Clyburn, does the FCC in fact work for the telecommunications industry and the corporations in that industry?

      The internet is INDEED a PUBLIC UTILITY. You Jackasses.

      WE, the Taxpayers, have already PAID IN FULL. Period.

      By the way,

      I disagree with Any Person, Any Group of Persons; Any who Represent Interests Above, Over, and in direct Opposition to the interests of the Common Good, ALL the people; “We the People,” the Tax-paying citizens of the United States; The Un-Represented; The Under-represented. That’s US indeed.

      It is simply criminal and totally contemptible how any government “employee(s)” would continue to work Directly and Impudently against the interests of those who pay their salaries.

      hands that employ And let us remember the fact that these “employees” are there ONLY to represent OUR interests; The interests of the Common Good; The interests of the United States’ Citizenry. The TAXPAYERS..

      These government agencies and the elected workers within them are decidedly NOT elected to be mere props who LIE to the citizens. And who represent, de facto, the Corporate interests.

      It is MOST egregious, indeed, that ANY government would represent, to the point of collaboration, Wealthy Corporations directly at the Enormous expense {THEFT] of the average U.S. Citizen, not to mention the poor, the needy, the elderly, the working-poor, the disabled and the obliterated Middle-Class-Cum-Slave-Class.

      CM

      U.S. Laws: On Advocating the Overthrow of Government…FYI November 20, 2014

      U.S. LAW TEXT

      U.S. Code

      › Title 18 › Part I › Chapter 115 › § 2385

      18 U.S. Code § 2385 – Advocating overthrow of Government

      Current through Pub. L. 113-185. (See Public Laws for the current Congress.)

      US Code

      Whoever knowingly or willfully advocates, abets, advises, or teaches the duty, necessity, desirability, or propriety of overthrowing or destroying the government of the United States or the government of any State, Territory, District or Possession thereof, or the government of any political subdivision therein, by force or violence, or by the assassination of any officer of any such government; or

      Whoever, with intent to cause the overthrow or destruction of any such government, prints, publishes, edits, issues, circulates, sells, distributes, or publicly displays any written or printed matter advocating, advising, or teaching the duty, necessity, desirability, or propriety of overthrowing or destroying any government in the United States by force or violence, or attempts to do so; or

      Whoever organizes or helps or attempts to organize any society, group, or assembly of persons who teach, advocate, or encourage the overthrow or destruction of any such government by force or violence; or becomes or is a member of, or affiliates with, any such society, group, or assembly of persons, knowing the purposes thereof—

      Shall be fined under this title or imprisoned not more than twenty years, or both, and shall be ineligible for employment by the United States or any department or agency thereof, for the five years next following his conviction.

      If two or more persons conspire to commit any offense named in this section, each shall be fined under this title or imprisoned not more than twenty years, or both, and shall be ineligible for employment by the United States or any department or agency thereof, for the five years next following his conviction.

      As used in this section, the terms “organizes” and “organize”, with respect to any society, group, or assembly of persons, include the recruiting of new members, the forming of new units, and the regrouping or expansion of existing clubs, classes, and other units of such society, group, or assembly of persons.

      BUT

      “…But when a long train of abuses and usurpations, pursuing invariably the

      same Object evinces a design to reduce them under absolute Despotism,

      it is their right, it is their duty, to throw off such Government, and

      to provide new Guards for their future security.”

      – Declaration of Independence, JULY 4, 1776

      C. M.

  • HERE are the NAYS to AUDIT the FED:

    NAY: 44

    Bennet (D-CO)

    Blumenthal (D-CT)

    Booker (D-NJ)

    Boxer (D-CA)

    Brown (D-OH)

    Cantwell (D-WA)

    Cardin (D-MD)

    Carper (D-DE)

    Casey (D-PA)

    Coons (D-DE)

    Corker (R-TN)

    Donnelly (D-IN)

    Durbin (D-IL)

    Feinstein (D-CA)

    Gillibrand (D-NY)

    Heinrich (D-NM)

    Heitkamp (D-ND)

    Hirono (D-HI)

    Kaine (D-VA)

    King (I-ME)

    Klobuchar (D-MN)

    Leahy (D-VT)

    Manchin (D-WV)

    Markey (D-MA)

    McCaskill (D-MO)

    Menendez (D-NJ)

    Merkley (D-OR)

    Mikulski (D-MD)

    Murphy (D-CT)

    Murray (D-WA)

    Nelson (D-FL)

    Peters (D-MI)

    Reed (D-RI)

    Reid (D-NV)

    Schatz (D-HI)

    Schumer (D-NY)

    Shaheen (D-NH)

    Stabenow (D-MI)

    Tester (D-MT)

    Udall (D-NM)

    Warner (D-VA)

    Warren (D-MA)

    Whitehouse (D-RI)

    Wyden (D-OR)

    Not Voting: 3

    Coats (R-IN)

    Cruz (R-TX)

    Franken (D-MN)

    • ahuxley

      I’ve been studying and closely following the “FED” issue since the late 1970s and it is absolutely astonishing that the vast majority of sheeple are still convinced that the FED is a beneficent government agency. If an authority-figure told the sheeple that up is down, black is white and left is right, then so be it; virtually no one would question it and those that did would be considered radical…
      Our overlords have it made in the shade…

  • MORE:

    DECEMBER 19, 2015
    Who Owns the Federal Reserve Bank and Why is It Shrouded in Myths and Mysteries?
    By Ismael Hossein-Zadeh December 18, 2015 COUNTERPUNCH

    Jamie Dimon JP MORGAN CHASE OBAMA

    December 18, 2015 COUNTERPUNCH

    Who Owns the Federal Reserve Bank and Why is It Shrouded in Myths and Mysteries? by Ismael Hossein-Zadeh

    “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.”

    — Henry Ford

    “Give me control of a Nation’s money supply, and I care not who makes its laws.”

    — M. A. Rothschild

    The Federal Reserve Bank (or simply the Fed), is shrouded in a number of myths

    and mysteries. These include its name, its ownership, its purported independence

    form external influences, and its presumed commitment to market stability,

    economic growth and public interest.

    The first MAJOR MYTH, accepted by most people in and outside of the United

    States, is that the Fed is owned by the Federal government, as implied by its name:

    the Federal Reserve Bank. In reality, however, it is a private institution whose

    shareholders are commercial banks; it is the “bankers’ bank.” Like other

    corporations, it is guided by and committed to the interests of its shareholders—pro

    forma supervision of the Congress notwithstanding.

    The choice of the word “Federal” in the name of the bank thus seems to be a

    deliberate misnomer—designed to create the impression that it is a public entity.

    Indeed, misrepresentation of its ownership is not merely by implication or

    impression created by its name. More importantly, it is also officially and explicitly

    stated on its Website: “The Federal Reserve System fulfills its public mission as an

    independent entity within government. It is not owned by anyone and is not a

    private, profit-making institution” [1].

    To unmask this blatant misrepresentation, the late Congressman Louis McFadden,

    Chairman of the House Banking and Currency Committee in the 1930s, described

    the Fed in the following words:

    “Some people think that the Federal Reserve Banks are United States Failure of the American

    Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves

    and their foreign customers; foreign and domestic speculators and

    swindlers; and rich and predatory money lenders.”

    The fact that the Fed is committed, first and foremost, to the interests of its

    shareholders, the commercial banks, explains why its monetary policies are

    increasingly catered to the benefits of the banking industry and, more generally, the

    financial oligarchy. Extensive deregulations that led to the 2008 financial crisis, the

    scandalous bank bailouts in response to the crisis, the continued showering of the

    “too-big-to-fail” financial institutions with interest-free money, the failure to

    impose effective restraints on these institutions after the crisis, the brutal neoliberal

    cuts in social safety net programs in order to pay for the gambling losses of high

    finance, and other similarly cruel austerity policies—can all be traced to the

    political and economic power of the financial oligarchy, exerted largely through

    monetary policies of the Fed.

    It also explains why many of the earlier U.S. policymakers resisted entrusting the

    profit-driven private banks with the critical task of money supply and credit

    creation:

    “The [private] Central Bank is an institution of the most deadly

    hostility existing against the principles and form of our constitution . . .

    . If the American people allow private banks to control the issuance of

    their currency . . ., the banks and corporations that will grow up around

    them will deprive the people of all their property until their children

    will wake up homeless on the continent their fathers conquered”

    (Thomas Jefferson, 3rd U.S. President).

    In 1836, Andrew Jackson abolished the Bank of the United States, arguing that it

    exerted undue and unhealthy influence over the course of the national economy.

    From then until 1913, the United States did not allow the formation of a private

    central bank. During that period of nearly three quarters of a century, monetary

    policies were carried out, more or less, according to the U.S. Constitution: Only the

    “Congress shall have power . . . to coin money, regulate the value thereof” (Article

    1, Section 8, U.S. Constitution). Not long before the establishment of the Federal

    Reserve Bank in 1913, President William Taft (1909-1913) pledged to veto any

    legislation that included the formation of a private central bank.

    Soon after Woodrow Wilson replaced William Taft as president, however, the

    Federal Reserve Bank was founded (December 23, 1913), thereby centralizing the

    power of U.S. banks into a privately owned entity that controlled interest rate,

    money supply, credit creation, inflation, and (in roundabout ways) employment. It

    could also lend money to the government and earn interest, or a fee—money that

    the government could create free of charge. This ushered in the beginning of the

    gradual rise of national debt, as the government henceforth relied more on

    borrowing from banks than self-financing, as it had done prior to granting the

    power of money-creation to the private banking system. Three years after signing

    the Federal Reserve Act into law, however, Wilson is quoted as having stated:

    “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” [2].

    While many independent thinkers and policy makers of times past thus viewed the

    unchecked power of private central banks as a vice not to be permitted to interfere

    with a nation’s monetary/economic policies, most economists and policy makers of

    today view the independence of central banks from the people and the elected

    bodies of government as a virtue!

    And herein lies ANOTHER MYTH that is created around the Fed: that it is an

    independent, purely technocratic or disinterested policy-making entity that is solely

    devoted to national interests, free of all external influences. Indeed, a section or

    chapter in every college or high school textbook on macroeconomics, money and

    banking or finance is devoted to the “advantages” of the “independence” of private

    central banks to determine the “proper” level of money supply, of inflation or of the

    volume of credit that an economy may need—always equating independence from

    elected authorities and citizens with independence in general. In reality, however,

    central bank independence means independence from the people and the elected

    bodies of government—not from the powerful financial interests.

    “Independence has really come to mean a central bank that has been

    captured by Wall Street interests, very large banking interests. It might

    be independent of the politicians, but it doesn’t mean it is a neutral

    arbiter. During the Great Depression and coming out of it, the Fed

    took its cues from Congress. Throughout the entire 1940s, the Federal

    Reserve as a practical matter was not independent. It took its marching

    orders from the White House and the Treasury—and it was the most

    successful decade in American economic history” [3].

    Another MAJOR MYTH associated with the Fed is its purported commitment to

    national and/or public interest. This presumed mission is allegedly accomplished

    through monetary policies that would mitigate financial bubbles, adjust credit or

    money supply to commercial and manufacturing needs, and inject buying power

    into the economy through large scale investment in infrastructural projects, thereby

    fostering market stability and economic expansion.

    Such was indeed the case in the immediate aftermath of the Great Depression and

    WW II when the Fed had to follow the guidelines of the Congress, the White

    House and the Treasury Department. As the regulatory framework of the New Deal

    economic policies restricted the role of commercial banks to financial

    intermediation between savers and investors, finance capital moved in tandem with

    industrial capital, as it essentially greased the wheels of industry, or production.

    Under those circumstances, where financial institutions served largely as conduits

    that aggregated and funneled national savings to productive investment, financial

    bubbles were rare, temporary and small.

    Not so in the age of finance capital. Freed from the regulatory constraints of the

    immediate post-WW II period (which determined the types, quantities and spheres

    of its investments), the financial sector has effectively turned into a giant casino.

    Accordingly, the Fed has turned monetary policy (since the days of Alan

    Greenspan) into an instrument of further enriching the rich by creating and

    safeguarding asset-price bubbles. In other words, the Fed’s monetary policy has

    effectively turned into a means of redistribution from the bottom up.

    The Financial Terrorism of Corporate Gangsters in

    the ‘Western World’

    This is no speculation or conspiracy theory: redistributive effects of the Fed

    policies in favor of the financial oligarchy are backed by undeniable facts and

    figures. For example, a recent study by the Pew Research Center of income/wealth

    distribution (published on December 9, 2015) shows that the systematic and

    escalating socio-economic polarization has led to a sharp decline in the number of

    middle-income Americans.

    The study reveals that, for the first time, middle-income households no longer

    constitute the majority of American house-holds: “Once in the clear majority,

    adults in middle-income households in 2015 were matched in number by those in

    lower- and upper-income households combined.” Specifically, while adults in

    middle-income households constituted 60.1 percent of total adult population in

    1971, they now constitute only 49.9 percent.

    According to the Pew report, the share of the national income accruing to middle income

    households declined from 62 percent in 1970 to 43 percent in 2014. Over

    the same period of time, the share of income going to upper-income households

    rose from 29 percent to 49 percent.

    A number of critics have argued that, using its proxies at the heads of the Fed and

    the Treasury, the financial oligarchy used the financial crisis of 2008 as a shock

    therapy to transfer trillions of taxpayer dollars to its deep pockets, thereby further

    aggravating the already lopsided distribution of resources. The Pew study

    unambiguously confirms this expropriation of national resource by the financial

    elites. It shows that the pace of the rising inequality has accelerated in the

    aftermath of the 2008 market implosion, as asset re-inflation since then has gone

    almost exclusively to oligarchic financial interests.

    Proxies of the financial oligarchy at the helm of economic policy making no longer

    seem to be averse to the destabilizing bubbles they help create. They seem to

    believe (or hope) that the likely disturbances from the bursting of one bubble could

    be offset by creating another bubble! Thus, after dot-com bubble, came the housing

    bubble; after that, energy-price and emerging markets bubble, after that, the junk

    bond market bubble, and so on. By the same token as the Fed re-inflates one bubble

    after another, it also systematically redistributes wealth and income from the

    bottom up.

    This is an extremely ominous trend because, aside from issues of social justice and

    economic insecurity for the masses of the people, the policy of creating and

    protecting asset bubbles on a regular basis is also unsustainable in the long run. No

    matter how long or how much they may expand financial bubbles—like taxes and

    rents under feudalism—are ultimately limited by the amount of real values

    produced in an economy.

    ***

    Is there a solution to the ravages wrought to the economies/societies of the core

    capitalist countries by the accumulation needs of parasitic finance capital—largely

    fostered or facilitated by the privately-owned central banks of these countries?

    Yes, there is indeed a solution. The solution is ultimately political. It requires

    different politics and/or policies: politics of serving the interests of the

    overwhelming majority of the people, instead of a cabal of financial oligarchs.

    The fact that profit-driven commercial banks and other financial intermediaries are

    major sources of financial instability is hardly disputed. It is equally well-known

    that, due to their economic and political influence, powerful financial interests

    easily subvert government regulations, thereby periodically reproducing financial

    instability and economic turbulence.

    By contrast, public-sector banks can better

    reassure depositors of the security of their savings, as well as help direct those

    savings toward socially-beneficial credit allocation and productive investment.

    Therefore, ending the recurring crises of financial markets requires placing the

    destabilizing financial intermediaries under public ownership and democratic

    control. It is only logical that the public, not private, authority should manage

    people’s money and their savings, or economic surplus. As the late German

    Economist Rudolf Hilferding argued long time ago, the system of centralizing

    people’s savings and placing them at the disposal of profit-driven private banks is a

    perverse kind of socialism, that is, socialism in favor of the few:

    “In this sense a fully developed credit system is the antithesis of

    capitalism, and represents organization and control as opposed to

    anarchy. It has its source in socialism, but has been adapted to

    capitalist society; it is a fraudulent kind of socialism, modified to suit

    the needs of capitalism. It socializes other people’s money for use by

    the few” [4].

    There are compelling reasons not only for higher degrees of reliability but also

    higher levels of efficacy of public-sector banking and credit system when

    compared with private banking—both on conceptual and empirical grounds.

    Nineteenth century neighborhood savings banks, Credit Unions, and Savings and

    Loan associations in the United States, Jusen companies in Japan, Trustee Savings

    banks in the UK, and the Commonwealth Bank of Australia all served the housing

    and other credit needs of their communities well. Perhaps a most interesting and

    instructive example is the case of the Bank of North Dakota, which continues to be

    owned by the state for nearly a century—widely credited for the state’s budget

    surplus and its robust economy in the midst of the harrowing economic woes in

    many other states.

    The idea of bringing the banking industry, national savings and credit allocation

    under public control or supervision is not necessarily socialistic or ideological. In

    the same manner that many infrastructural facilities such as public roads, school

    systems and health facilities are provided and operated as essential public services,

    so can the supply of credit and financial services be provided on a basic public

    utility model for both day-to-day business transactions and long-term industrial

    projects.

    Provision of financial services and/or credit facilities after the model of public

    utilities would allow for lower financial costs to both producers and consumers.

    Today, between 35 percent and 40 percent of all consumer spending is appropriated

    by the financial sector: bankers, insurance companies, non-bank lenders/financiers,

    bondholders, and the like [5]. By freeing consumers and producers from what can

    properly be called the financial overhead, or rent, similar to land rent under

    feudalism, the public option credit and/or banking system can revive many stagnant

    economies that are depressed under the crushing burden of never-ending debt servicing

    obligations.

    References

    [1] “Who owns the Federal Reserve?”

    [2] This statement of President Wilson is quoted in numerous places. A number of

    commentators have argued that some of the damning words used in this much quoted

    statement are either not Wilson’s own, or taken out of context. Nobody

    denies, however, that regardless of the exact words used, he had serious

    reservations about the formation of the Federal Reserve Bank, and the misguided

    policy of delegating the nation’s money supply and/or monetary policy to a cabal

    of private bankers.

    [3]. Ellen Brown, “How the Fed Could Fix the Economy—and Why It Hasn’t”

    [4] Hilferding’s book, Finance Capital: A Study of the Latest Phase of Capitalist

    Development, has gone through a number of prints/reprints. This quotation is from

    Chapter 10 of an online version of the book, which is available at:

    http://www.marxists.org/archive/hilferding/1910/finkap/ch10.htm

    [5]. Margrit Kennedy, Occupy Money: Creating an Economy Where Everybody

    Wins, Gabriola Island, BC (Canada): New Society Publishers, 2012.

    Ismael Hossein-zadeh is Professor Emeritus of Economics (Drake University). He

    is the author of Beyond Mainstream Explanations of the Financial

    Crisis (Routledge 2014), The Political Economy of U.S. Militarism (Palgrave–

    Macmillan 2007), and the Soviet Non-capitalist Development: The Case of

    Nasser’s Egypt (Praeger Publishers 1989). He is also a contributor to Hopeless:

    Barack Obama and the Politics of Illusion.

    ******

    • diogenes

      all those words and not one single owner named. So, “who owns the Federal REserve”? We’re still waiting to hear. What a snow job.

      • Umm…I merely posted ONE article and I did not even write it…Do a little RESEARCH of your OWN, LITTLE one. FEH!!!!

      • What a fucking IDIOT!!!!!

      • By the way, DIOGENES SHILL What IN HELL are you trying to SAY???? OUT WITH IT!!! What in GOD’S NAME is your POINT?????CM

  • Tokko

    Michael Snyder = FEARPORNER
    Economic Collapse Blog = DOOMPORN

    • kimyo

      Tokko = lame ad hominem attacker

      • ahuxley

        Or Tokko = Ruling-class shill who makes two-bits a post.

  • Feb 24, 2016 More Countries Are Turning To Their Own Currencies As The US Economy Disintegrates

    New home sales implode signalling the bursting of the housing bubble. Manufacturing and the service sector have crashed. It is time to get rid of the Federal Reserve, it does not serve the interests of the people. Russia increases its gold reserves. Countries are now in talks to use their own currencies and move away from the dollar.

    https://youtu.be/pR8rFxTdhSc

  • dennis richardson

    Three-quarters of Congress members have taken bribes, Presidential candidate Donald Trump should reveal that this is a fact in October before election. The majority of these Congress members should retire to minimize their prosecution for bribe taking and subsequent treason charges leveled by the new Congress in February 2017. Why has Ben Sasse been so obstinate in opposition to Donald Trump being the new President. The whole corruption of Washington DC is coming down with a gigantic crash that would satisfy the Founders. Treason trials and possible executions by the scores, NO. Thousands. (6000 to 30,000)?

  • gadsdengurl

    Trump, still a piece of crap who loves QE because it benefits HIM.