Tag Archives: Federal Reserve

GREATEST BANK HEIST IN HISTORY

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Con artists, scams, racketeers, gangsters; Madoff, Ponzi, Lustig ( he tried to sell the Eiffel Tower), Gregor McGregor who created a fake country, George Parker who sold the Brooklyn Bridge and Madison Square Garden and the Statue of Liberty to boot, to pull a stunt like that you had to be good. However, compared to the greatest heist in history the aforementioned are only petty thieves.

The Mother of all Heists is the ongoing con perpetrated by the Federal Reserve Bank of the United States. In collusion with the Secretary of the Treasury and President of the United States the Federal Reserve they looted the pockets of frugal Americans, retirees, those with IRA’s to the benefit of the United States government, Big Banks and large corporations. How did they do this?

When the crash of 2008-2009 occurred the Federal Reserve came to the rescue, dropping interest rates at a precipitous pace to the point that they are almost negative. The effect being that those who save for the future were denied market rate interest on their savings. This injured millions of Americans to the point that to live they had to drain their savings due to no interest being paid on it.

For example, a retiree expecting a nominal 6% return on $250,000 or $15,000 per year receives zero interest. This forces him/her to withdraw the $15,000 from the principal; if this keeps up for another half dozen years the principal will be down to $70,000. Basically the government stole $180,000 from this individual. The banks, the corporations and the government were the beneficiaries.  Multiply this by millions.

Over the course of a dozen years this HEIST numbers in the TRILLIONS. When history is written, effectively it already has, this SOCIALIST EXPERIMENT will go down as the greatest Ponzi Scheme in history, a Grand Theft like no other the world has ever seen. 

One reason the United States Treasury has a gold horde is to give the impression that our money is backed by something other wishful thinking.  “The Full Faith and Credit of the U.S. Government” clause is nowhere to be found on new bills.  Examine the $100 bill, where does it mention that.  Worthless paper with some euphemistic promise to pay in the future is all we hold. The joke is on us.

Oh, we are told that Gold is worthless, then why does the government hold it? Ponder that for a while.

WHY LISTEN TO THE GOVERNMENT WHEN THEY STEAL FROM THE PEOPLE

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Governments past and present are nothing more than magicians; they are adept at the three card monte where the taxpayer’s money disappears quicker than a vehicle vacuumed up by a Florida sinkhole. The best way to phrase the politician is a fugitive 180 degrees different from when they first became elected. In the majority of cases the political class summons the news media to put on a spectacle for the very few parasites who continue to mooch off the systems. The public in essence is to busy to protest such a prearranged spectacle. Always notice that the politician do gooder is always surrounded by his or her comrades. This is not because they believe in the policy or action to be taken, but to give support to a weaker member of the cabal.

The scheme of confiscation was initiated by FDR in 1933 when by executive order 6102 the gold window was abruptly shut. All citizens were required under edict to exchange their gold for paper. Think about this happening today. There would be lead flying in the streets. The main rationale behind the order was actually to remove the constraint on the Federal Reserve which prevented it from increasing the money supply during the depression; the Federal Reserve Act (1913) required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit (in the form of Federal Reserve demand notes) that could be backed by the gold in its possession (see Great Depression). If gold can’t be legally owned, then it can’t be legally redeemed. If it can’t be legally redeemed, then it can’t constrain the central bank.

Numerous individuals and companies were prosecuted related to President Roosevelt’s Executive Order 6102. The prosecutions took place under subsequent Executive Orders 6111,[8] 6260,[9] 6261[10] and the Gold Reserve Act of 1934.

There was a need to strengthen Executive Order 6102, as the one prosecution under the order was ruled invalid by federal judge John M. Woolsey, on the grounds that the order was signed by the President, not the Secretary of the Treasury as required.[11]

The circumstances of the case were that a New York attorney, Frederick Barber Campbell, had on deposit at Chase National over 5,000 troy ounces (160 kg) of gold. When Campbell attempted to withdraw the gold Chase refused and Campbell sued Chase. A federal prosecutor then indicted Campbell on the following day (September 27, 1933) for failing to surrender his gold.[12] Ultimately, the prosecution of Campbell failed, but the authority of the federal government to seize gold was upheld, and Campbell’s gold was confiscated.

The bottom line here is that the government then became the authority on what amount of money was put into circulation. They, at their will, could print any amount sufficient to keep the scheme rolling. Today we have seen the result of a the printing at all costs paradyne.

For instance, during Obama’s almost seven years in office, debt has risen by $8 trillion. Yet we have an economy in tatters; don’t believe the official dogma of 5.1 % unemployment, counting those who have given up, the unemployment rate is close to 14%. Keep in mind that during the depression not one single human being gave up looking for work. But it is a different matter today because of social programs and the what not provide a safety net. Putting that aside, those who have given up look is not because of the safety net, but because there are no jobs available.

If the government paper hangers feel that gold was the enemy in the past and paper (fiat) currency is the panacea, then why not print trillions of dollars and hand out a ten million to every citizen. By the way that has been tried in Germany during the reign of Weimar. 

The confiscating of gold produced a monopoly in all countries that did not back their currency with gold or silver. Effectively we have turned over out lives to the Federal Reserve money mongers without our permission.  Through printing the government has devalued an individuals assets over time. Soon the day of reckoning will be upon us. Very soon!

 

WHAT THE GOLD BRICKS WON’T TELL YOU

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Through out history gold has been the medium of exchange; the store of value. Paper money displaced gold early in the 17th century; first used in Massachusetts then by the states during the Civil War. The banking industry’s genesis was initiated early on by warehouses which issued a receipt – thus a warehouse receipt – entitling the holder to redeem the receipt for the said amount of gold as defined in the receipt. As the industry blossomed it became apparent that the holders of receipts very rarely requested the physical gold; they only transferred the receipts. Thus the warehouses evolved into lenders realizing that a call for 100 percent of the gold at any one time was not a probability.

The 18th through the 21st century became the glory days of gold. Banks became behemoths lending more gold than they had in inventory. When a run on a bank occurred, which it ultimately did, culminating in bankruptcy and ruin. As the United States entered the 20th century as the world’s big money player the world treated the dollar as if it was good as gold.

This was true up until 1971.  Not dismissing the illegal taking of individuals gold by FDR back in 1933 (see executive order 6102).  The world was on the path of becoming a dynamic and risky adventure from 1971 on; the dollar was no longer convertible to gold, the dream of El Dorado became a reality by inventing paper gold on a scale never seen before. The physical gold window had closed, the dollar pyramid scheme began.  Hence the printing of paper money on a scale never seen before. Economies were on financial cocaine, a euphoria that is still manifested by governments gone wild. More printing enabled the exalted to exert control of economies, countries and world politics. But good times don’t last forever.

Entering the 21st century has proved that the dollar panacea has a long reach, but things can changes in a quant moment. Across the globe one country after another has defaulted; Greece and Argentina head the list. Is it possible that the United States is next?  A probability that cannot be counted out. What brings us to that conclusion is the loss of faith in the United States. We are no longer control world events – Obama saw to it.

Future obligations are the tail wagging the dog and that is about to become the albatross under our neck for the next two decades. Obligations are coming due. And the question remains, who will be responsible to pay them. for sure you can’t count on today’s youth to hand over their hard earned cash.   17 Trillion and counting is a gargantua number, that is just debt, counting social security, medicate obligations and interest on the debt we are looking at a google type number closer to 100 trillion. $100,000,000,0000,0000.

Another relevant question to ask a politician of the goldbrick variety is:  Will we ever be able to pay back the money we owe?   Don’t expect a straight answer.  The next question is, Will gold provide a solution to political largesse?