As the citizens of the United States and the seventeen member-nations of the European Union look on, a great drama regarding the future of the EU and its currency, the Euro, is occurring.

The essential problem is that both the U.S. dollar and the Euro are just so much paper, despite the promises and guarantees that they will be honored as real money. The trick has been to keep everyone believing there are sufficient real assets to back up those promises.

Since the U.S. dollar is a kind of universal currency to which other nations peg the value of their currencies the problem for everyone is that the U.S. is broke. Its debt exceeds its annual capacity to generate income, otherwise known as its Gross Domestic Product. Every hour of every day it must borrow billions to meet its obligations. Forty cents of every dollar the U.S. spends is borrowed.

There is a reason why television these days if filled with commercials offering to sell gold. Gold has always retained its value though it does fluctuate. The U.S. Treasury’s gold hoard has a value of more than $400 billion these days, but that value is the flip side of the Federal Reserve’s demolition of the dollar which has lost 95% of its value since1913, the same year the Fed was created.

Currently the Federal Reserve has been printing vast quantities of dollars—quantitative easing—that only serves to devalue it. The dollar is backed by the “full faith and credit” of the United States, but for the first time in our history our credit rating has been downgraded by agencies such as Standard & Poor’s and Moody’s.

Not that the rating agencies haven’t also been part of the problem. They are famous for telling everyone that the bundled mortgage assets of Freddie Mac and Fannie Mae were okay right up to the day the 2008 financial crisis occurred and Lehman Brothers collapsed

When the 2008 financial crisis hit, the American taxpayer was tapped to bail out a number of banks, a huge insurance company, and even General Motors. This was followed by “stimulus” spending, all of which drove U.S. debt levels to historic highs. The vast matrix of Federal Reserve central banks, government agencies charged with oversight of financial institutions, and the ratings agencies all contributed to the crisis.

The U.S. went off the gold standard in 1931, in effect exporting deflation around the world. Other nations followed suit. At the time, Americans were experiencing high debt burdens, unemployment, and money hoarding. If that also sounds like 2011, you’re right.

The crisis of 2008 was brought about by the “bundling” of mortgage assets. Fannie Mae and Freddie Mac, two Depression-era social justice inventions, currently own 50% of mortgages, many of which were the result of pressures on banks to make loans to people who clearly could not pay them back. What the banks considered “assets” were phantoms whose collateral could often not be traced.

Little noted is the role of the Federal Reserve. A government investigation into the causes of the 2008 financial crisis concluded that “The prime example is the Federal Reserve’s pivotal failure to stem the flow of toxic mortgages which it could have done by setting prudent mortgage-lending standards. The Federal Reserve was the one entity empowered to do so and it did not…”

What the Fed had done, in fact, was to lower the interest rate it charged for lending to banks to very nearly zero.

In his book, “Currency Wars: The Making of the Next Global Crisis”, author James Rickards explains what is actually occurring.

“The United States now has a system in which the Treasury runs non-sustainable deficits and sells bonds to keep from going broke. The Fed prints money to buy those bonds and incurs losses by owning them. Then the Treasury takes IOUs back from the Fed to keep the Fed from going broke.”

We’ve been here before in two previous currency wars, the latter of which led to World War II. The problem then and now is the need for job creation, something that can only be achieved by private enterprise.

The United States government has not provided a good environment for its business and industrial community to invest and expand. It has, as just one example, very nearly the highest corporate tax in the world; beyond that, a vast matrix of regulations makes doing business in America expensive, difficult, and often uncompetitive.

How this will all play out depends in large part on whether Americans are prepared to reduce the size of a government that grew precipitously in the 1930s and the second half of the last century. We must begin to slowly and fairly phase out the “entitlement” programs.

The great question facing Europe is whether the EU disbands and its members return to individual national sovereignty in a response to a continent-wide economic disruption caused by unsustainable debt in its southern tier nations. The EU was a response to a history that generated two major wars in the last century, bankrupting the continent morally, socially, and economically. The road back has been in part due to U.S. aid and protection against the former Soviet threat.

While the possibility of abandoning the Euro was unthinkable bare months ago, it is now an option; a very difficult option because of the vast interconnectiveness of Europe’s and our own banks.

In America the only real hope we have is that in November 2012 we will elect men and women who will turn the ship of state around before the latest currency war sinks ours and the world’s economies.

© Alan Caruba, 2011

 

WesternFront America

(Speech by Rep. Louis T. McFadden denouncing the Federal Reserve System)

By: Louis McFadden, 1932-06-10, source: Congressional Record, June 1932, pg 12595-12603

• The Cause of the Problem
• President Wilson
• The Aldrich Bill
• The Federal Reserve Act
• Federal Reserve Notes
• Private Credit Corporations
• Serving Foreign Interests
• Acceptance Banking
• International Swindlers
• Fiat Money
• The International Superstate

The Cause of the Problem

Mr. Chairman, at the present session of Congress we have been dealing with emergency situations [the economic depression --ed]. We have been dealing with the effect of things rather than with the cause of things. In this particular discussion I shall deal with some of the causes that lead up to these proposals. There are underlying principles which are responsible for conditions such as we have at the present time and I shall deal with one of these in particular which is tremendously important in the consideration that you are now giving to this bill.

Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. The depredations and iniquities of the Federal Reserve Board has cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

Some people think the Federal Reserve banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders. In that dark crew of financial pirates there are those who would cut a man’s throat to get a dollar out of his pocket; there are those who send money into States to buy votes to control our legislation; and there are those who maintain international propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

These twelve private credit monopolies were deceitfully and disloyally foisted upon this country by the bankers who came here from Europe and repaid us for our hospitality by undermining our American institutions. Those bankers took money out of this country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia and thus drove a wedge between the Allies in the World War. They financed [Leon Trotsky]‘s passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian revolution and they placed a large fund of American dollars at Trotsky’s disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun the breaking up of American homes and the dispersal of American children.

[For more, see "Wall Street and the Bolshevik Revolution"]

President Wilson

It has been said that PresidentWilson was deceived by the attentions of these bankers and by the philanthropic poses they assumed. It has been said that when he discovered the manner in which he had been misled by Colonel House, he turned against that busybody, that “holy monk” of the financial empire, and showed him the door. He had the grace to do that, and in my opinion he deserves great credit for it.

President Wilson died a victim of deception. When he came to the Presidency, he had certain qualities of mind and heart which entitled him to a high place in the councils of this Nation; but there was one thing he was not and which he never aspired to be; he was not a banker. He said that he knew very little about banking. It was, therefore, on the advice of others that the iniquitous Federal Reserve act, the death warrant of American liberty, became law in his administration.

Mr. Chairman, there should be no partisanship in matters concerning the banking and currency affairs of this country, and I do not speak with any.

The Aldrich Bill

In 1912 the National Monetary Association, under the chairmanship of the late Senator Nelson W. Aldrich, made a report and presented a vicious bill called the National Reserve Association bill. This bill is usually spoken of as the Aldrich bill. Senator Aldrich did not write the Aldrich bill. He was the tool, but not the accomplice, of the European-born bankers who for nearly twenty years had been scheming to set up a central bank in this country and who in 1912 had spent and were continuing to spend vast sums of money to accomplish their purpose.

The Aldrich bill was condemned in the platform upon which Theodore Roosevelt was nominated in the year 1912, and in that same year, whenWoodrow Wilson was nominated, the Democratic platform, as adopted at the Baltimore convention, expressly stated: “We are opposed to the Aldrich plan for a central bank.” This was plain language. The men who ruled the Democratic Party then promised the people that if they were returned to power there would be no central bank established here while they held the reigns of government.

Thirteen months later that promise was broken, and the Wilson administration, under the tutelage of those sinister Wall Street figures who stood behind Colonel House, established here in our free country the worm-eaten monarchical institution of the “king’s bank” to control us from the top downward, and to shackle us from the cradle to the grave. The Federal Reserve act destroyed our old and characteristic way of doing business; it discriminated against our one-name commercial paper, the finest in the world; it set up the antiquated two-name paper, which is the present curse of this country, and which wrecked every country which has ever given it scope; it fastened down upon this country the very tyranny from which the framers of the Constitution sought to save us.

One of the greatest battles for the preservation of this Republic was fought out here in [Andrew Jackson]‘s day, when the Second Bank of the United States, which was founded upon the same false principles as those which are here exemplified in the Federal Reserve act, was hurled out of existence. After the downfall of the Second Bank of the United States in 1837, the country was warned against the dangers that might ensue if the predatory interests, after being cast out, should come back in disguise and unite themselves to the Executive, and through him acquire control of the Government. That is what the predatory interests did when they came back in the livery of hypocrisy and under false pretenses obtained the passage of the Federal Reserve act.

The danger that the country was warned against came upon us and is shown in the long train of horrors attendant upon the affairs of the traitorous and dishonest Federal Reserve Board and the Federal Reserve banks are fully liable. This is an era of financed crime and in the financing of crime, the Federal Reserve Board does not play the part of a disinterested spectator.

The Federal Reserve Act

It has been said that the draughtsman who was employed to write the text of the Federal Reserve bill used a text of the Aldrich bill for his purpose. It has been said that the language of the Aldrich bill was used because the Aldrich bill had been drawn up by expert lawyers and seemed to be appropriate. It was indeed drawn up by lawyers. The Aldrich bill was created by acceptance bankers of European origin in New York City. It was a copy and in general a translation of the statutes of the Reichsbank and other European central banks.

Half a million dollars was spent one part of the propaganda organized by those same European bankers for the purpose of misleading public opinion in regard to it, and for the purpose of giving Congress the impression that there was an overwhelming popular demand for that kind of banking legislation and the kind of currency that goes with it, namely, an asset currency based on human debts and obligations instead of an honest currency based on gold and silver values. Dr. H. Parker Willis had been employed by the Wall Street bankers and propagandists and when the Aldrich measure came to naught and he obtained employment with Carter Glass to assist in drawing a banking bill for the Wilson administration, he appropriated the text of the Aldrich bill for his purpose. There is no secret about it. The text of the Federal Reserve act was tainted from the beginning.

Not all of the Democratic Members of the Sixty-third Congress voted for this great deception. Some of them remembered the teachings of Jefferson; and, through the years, there had been no criticisms of the Federal Reserve Board and the Federal Reserve banks so honest, so out-spoken, and so unsparingly as those which have been voiced here by Democrats. Again, although a number of Republicans voted for the Federal Reserve act, the wisest and most conservative members of the Republican Party would have nothing to do with it and voted against it.

A few days before the bill came to a vote, Senator Henry Cabot Lodge, of Massachusetts, wrote to Senator John W. Weeks as follows:

New York City, December 17, 1913

My Dear Senator Weeks:

Throughout my public life I have supported all measures designed to take the Government out of the banking business…. This bill puts the Government into the banking business as never before in our history and makes, as I understand it, all notes Government notes when they should be bank notes.

The powers vested in the Federal Reserve Board seem to me highly dangerous, especially where there is political control of the Board. I should be sorry to hold stock in a bank subject to such domination. The bill as it stands seems to me to open the way to a vast inflation of the currency. There is no necessity of dwelling upon this point after the remarkable and most powerful argument of the senior Senator from New York. I can be content here to follow the example of the English candidate for Parliament who thought it enough “to say ditto to Mr. Burke.” I will merely add that I do not like to think that any law can be passed which will make it possible to submerge the gold standard in a flood of irredeemable paper currency.

I had hoped to support this bill, but I can not vote for it as it stands, because it seems to me to contain features and to rest upon principles in the highest degree menacing to our prosperity, to stability in business, and to the general welfare of the people of the United States.

Very sincerely yours,

Henry Cabot Lodge

In eighteen years that have passed since Senator Lodge wrote that letter of warning all of his predictions have come true. The Government is in the banking business as never before. Against its will it has been made the backer of horsethieves and card sharps, bootleggers, smugglers, speculators, and swindlers in all parts of the world. Through the Federal Reserve Board and the Federal Reserve banks the riffraff of every country is operating on the public credit of this United States Government. Meanwhile, and on account of it, we ourselves are in the midst of the greatest depression we have ever known. Thus the menace to our prosperity, so feared by Senator Lodge, has indeed struck home. From the Atlantic to the Pacific our country has been ravaged and laid waste by the evil practices of the Federal Reserve Board and the Federal Reserve banks and the interests which control them. At no time in our history has the general welfare of the people of the United States been at a lower level or the mind of the people so filled with despair.

Recently in one of our States 60,000 dwelling houses and farms were brought under the hammer in a single day. According to the Rev. Father Charles E. Coughlin, who has lately testified before a committee of this House, 71,000 houses and farms in Oakland County, Michigan, have been sold and their erstwhile owners dispossessed. Similar occurrences have probably taken place in every county in the United States. The people who have thus been driven out are the wastage of the Federal Reserve act. They are the victims of the dishonest and unscrupulous Federal Reserve Board and Federal Reserve banks. Their children are the new slaves of the auction blocks in the revival here of the institution of human slavery.

In 1913, before the Senate Banking and Currency Committee, Mr. Alexander Lassen made the following statement:

“But the whole scheme of the Federal Reserve bank with its commercial-paper basis is an impractical, cumbersome machinery, is simply a cover, to find a way to secure the privilege of issuing money and to evade payment of as much tax upon circulation as possible, and then control the issue and maintain, instead of reduce, interest rates. It is a system that, if inaugurated, will prove to the advantage of the few and the detriment of the people of the United States. It will mean continued shortage of actual money and further extension of credits; for when there is a lack of real money people have to borrow credit to their cost.”

A few days before the Federal Reserve act was passed Senator Elihu Root denounced the Federal Reserve bill as an outrage on our liberties and made the following prediction:

“Long before we wake up from our dreams of prosperity through an inflated currency, our gold, which alone could have kept us from catastrophe, will have vanished and no rate of interest will tempt it to return.”

If ever a prophecy came true, that one did. It was impossible, however, for those luminous and instructed thinkers to control the course of events. On December 23, 1913, the Federal Reserve bill became law, and that night Colonel House wrote to his hidden master in Wall Street as follows:

“I want to say a word of appreciation to you for the silent but no doubt effective work you have done in the interest of currency legislation and to congratulate you that the measure has finally been enacted into law. We all know that an entirely perfect bill, satisfactory to everybody, would have been an impossibility, and I feel quite certain that unless the President had stood as firm as he did we should likely have had no legislation at all. The bill is a good one in many respects; anyhow good enough to start with and to let experience teach us in what direction it needs perfection, which in due time we shall then get. In any event you have personally good reason to feel gratified with what has been accomplished.”

The words “unless the President had stood as firm as he did we should likely have had no legislation at all,” were a gentle reminder that it was Colonel House himself, the “holy monk,” who had kept the President firm.

The foregoing letter affords striking evidence of the manner in which the predatory interests then sought to control the Government of the United States by surrounding the Executive with the personality and the influence of a financial Judas. Left to itself and to the conduct of its own legislative functions without pressure from the Executive, the Congress would not have passed the Federal Reserve act. According to Colonel House, and since this was his report to his master, we may believe it to be true, the Federal Reserve act was passed because Wilson stood firm; in other words because Wilson was under the guidance and control of the most ferocious usurers in New York through their hireling, House. The Federal Reserve act became law the day before Christmas Eve in the year 1913, and shortly afterwards the German international bankers, Kuhn, Loeb and Co., sent one of their partners here to run it.

Federal Reserve Notes

In 1913, when the Federal Reserve bill was submitted to the Democratic caucus, there was a discussion in regard to the form the proposed paper currency should take. The proponents of the Federal Reserve act, in their determination to create a new kind of paper money, had not needed to go outside of the Aldrich bill for a model. By the terms of the Aldrich bill, bank notes were to be issued by the National Reserve Association and were to be secured partly by gold or lawful money and partly by circulating evidences of debt. The first draft of the Federal Reserve bill presented the same general plan, that is, for bank notes as opposed to Government notes, but with certain differences of regulation.

When the provision for the issuance of Federal Reserve notes was placed before President Wilson he approved of it, but other Democrats were more mindful of Democratic principles and a great protest greeted the plan. Foremost amongst those who denounced it was William Jennings Bryan, the Secretary of State. Bryan wished to have the Federal Reserve notes issued as Government obligations. President Wilson had an interview with him and found him adamant. At the conclusion of the interview Bryan left with the understanding that he would resign if the notes were made bank notes. The President then sent for his Secretary and explained the matter to him. Mr. Tumulty went to see Bryan and Bryan took from his library shelves a book containing all the Democratic platforms and read extracts from them bearing on the matter of the public currency. Returning to the President, Mr. Tumulty told him what had happened and ventured the opinion that Mr. Bryan was right and that Mr. Wilson was wrong. The President then asked Mr. Tumulty to show him where the Democratic Party in its national platforms had ever taken the view indicated by Bryan. Mr. Tumulty gave him the book, which he had brought from Bryan’s house, and the President read very carefully plank after plank on the currency. He then said, “I am convinced there is a great deal in what Mr. Bryan says,” and thereupon it was arranged that Mr. Tumulty should see the proponents of the Federal Reserve bill in an effort to bring about an adjustment of the matter.

The remainder of this story may be told in the words of Senator Glass. Concerning Bryan’s opposition to the plan of allowing the proposed Federal Reserve notes to take the form of bank notes and the manner in which President Wilson and the proponents of the Federal Reserve bill yielded to Bryan in return for his support of the measure, Senator Glass makes the following statement:

The only other feature of the currency bill around which a conflict raged at this time was the note-issue provision. Long before I knew it, the President was desperately worried over it. His economic good sense told him the notes should be issued by the banks and not by the Government; but some of his advisers told him Mr. Bryan could not be induced to give his support to any bill that did not provide for a “Government note.” There was in the Senate and House a large Bryan following which, united with a naturally adversary party vote, could prevent legislation. Certain overconfident gentlemen proffered their services in the task of “managing Bryan.” They did not budge him….

When a decision could no longer be postponed the President summoned me to the White House to say he wanted Federal Reserve notes to “be obligations of the United States.” I was for an instant speechless. With all the earnestness of my being I remonstrated, pointing out the unscientific nature of such a thing, as well as the evident inconsistency of it.

“There is not, in truth, any Government obligation here, Mr. President,” I exclaimed. “It would be a pretense on its face. Was there ever a Government note based primarily on the property of banking institutions? Was there ever a Government issue not one dollar of which could be put out except by demand of a bank? The suggested Government obligation is so remote it could never be discerned,” I concluded, out of breath.

“Exactly so, Glass,” earnestly said the President. “Every word you say is true; the Government liability is a mere thought. And so, if we can hold to the substance of the thing and give the other fellow the shadow, why not do it, if thereby we may save our bill?”

Shadow and substance! One can see from this how little President Wilson knew about banking. Unknowingly, he gave the substance to the international banker and the shadow to the common man. Thus was Bryan circumvented in his efforts to uphold the Democratic doctrine of the rights of the people. Thus the “unscientific blur” upon the bill was perpetrated. The “unscientific blur,” however, was not the fact that the United States Government, by the terms of Bryan’s edict, was obliged to assume as an obligation whatever currency was issued. Mr. Bryan was right when he insisted that the United States should preserve its sovereignty over the public currency. The “unscientific blur” was the nature of the currency itself, a nature which makes it unfit to be assumed as an obligation of the United States Government. It is the worst currency and the most dangerous this country has ever known. When the proponents of the act saw that the Democratic doctrine would not permit them to let the proposed banks issue the new currency as bank notes, they should have stopped at that. They should not have foisted that kind of currency, namely, an asset currency, on the United States Government. They should not have made the Government liable on the private debts of individuals and corporations and, least of all, on the private debts of foreigners.

The Federal Reserve note is essentially unsound. As Kemmerer says:

“The Federal Reserve notes, therefore, in form have some of the qualities of Government paper money, but, in substance, are almost a pure asset currency possessing a Government guaranty against which contingency the Government has made no provision whatever.”

Hon. E.J. Hill, a former Member of the House, said, and truly:

“They are obligations of the Government for which the United States has received nothing and for the payment of which at any time it assumes the responsibility looking to the Federal Reserve to recoup itself.”

If the United States Government is to redeem the Federal Reserve notes when the general public finds out what it costs to deliver this flood of paper money to the twelve Federal Reserve banks, and if the Government has made no provision for redeeming them, the first element of unsoundness is not far to seek.

Before the Banking and Currency Committee, when the Federal Reserve bill was under discussion, Mr. Crozier, of Cincinnati, said:

“In other words, the imperial power of elasticity of the public currency is wielded exclusively by these central corporations owned by the banks. This is a life and death power over all local banks and all business. It can be used to create or destroy prosperity, to ward off or cause stringencies and panics. By making money artificially scarce, interest rates throughout the country can be arbitrarily raised and the bank tax on all business and cost of living increased for the profit of the banks owning these regional central banks, and without the slightest benefit to the people. These twelve corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency and all public revenue of the United States. Not a dollar can be put into circulation among the people by their Government without the consent of and on terms fixed by these twelve private money trusts.”

Private Credit Corporations

In defiance of this and all other warnings, the proponents of the Federal Reserve act created the twelve private credit corporations and gave them an absolute monopoly of the currency of the United States, not of the Federal Reserve notes alone, but of all the currency, the Federal Reserve act providing ways by means of which the gold and general currency in the hands of the American people could be obtained by the Federal Reserve banks in exchange for Federal Reserve notes, which are not money, but merely promises to pay money. Since the evil day when this was done the initial monopoly has been extended by vicious amendments to the Federal Reserve act and by the unlawful and treasonable practices of the Federal Reserve Board and the Federal Reserve banks.

Mr. Chairman, when a Chinese merchant sells human hair to a Paris wigmaker and bills him in dollars, the Federal Reserve banks can buy his bill against the wigmaker and then use that bill as collateral for the Federal Reserve notes. The United States Government thus pays the Chinese merchant the debt of the wigmaker and gets nothing in return except a shady title to the Chinese hair.

Mr. Chairman, if a Scottish distiller wishes to send a cargo of Scotch whiskey to the United States, he can draw his bill against the purchasing bootlegger in dollars; and after the bootlegger has accepted it by writing his name across the face of it, the Scotch distiller can send that bill to the nefarious open discount market in New York City, where the Federal Reserve Board and the Federal Reserve banks will buy it and use it as collateral for a new issue of Federal Reserve notes. Thus the Government of the United States pays the Scotch distiller for the whiskey before it is shipped; and if it is lost on the way, or if the Coast Guard seizes it and destroys it, the Federal Reserve banks simply write off the loss and the Government never recovers the money that was paid to the Scotch distiller. While we are attempting to enforce prohibition here, the Federal Reserve Board and the Federal Reserve banks are financing the distillery business in Europe and paying bootleggers’ bills with the public credit of the United States Government.

Mr. Chairman, if a German brewer ships beer to this country or anywhere else in the world and draws his bill for it in dollars, the Federal Reserve banks will buy that bill and use it as collateral for Federal Reserve notes. Thus, they compel our Government to pay the German brewer for his beer. Why should the Federal Reserve Board and the Federal Reserve banks be permitted to finance the brewing industry in Germany, either in this way or as they do by compelling small and fearful United States banks to take stock in the Isenbeck brewery and in the German bank for brewing industries?

Mr. Chairman, if Dynamit Nobel of Germany wishes to sell dynamite to Japan to use in Manchuria or elsewhere, it can draw its bill against the Japanese customers in dollars and send that bill to the nefarious open discount market in New York City, where the Federal Reserve Board and Federal Reserve banks will buy it and use it as collateral for a new issue of Federal Reserve notes, while at the same time the Federal Reserve Board will be helping Dynamit Nobel by stuffing its stock into the United States banking system. Why should we send our representatives to the disarmament conference at Geneva while the Federal Reserve Board and the Federal Reserve banks are making our Government pay Japanese debts to German munition makers?

Mr. Chairman, if a bean grower of Chile wishes to raise a crop of beans and sell them to a Japanese customer, he can draw a bill against his prospective Japanese customer in dollars and have it purchased by the Federal Reserve Board and Federal Reserve banks and get the money out of this country at the expense of the American people before he has even planted the beans in the ground.

Mr. Chairman, if a German in Germany wishes to export goods to South America or anywhere else, he can draw his bill against his customer and send it to the United States and get the money out of this country before he ships or even manufactures the goods.

Mr. Chairman, why should the currency of the United States be issued on the strength of Chinese human hair? Why should it be issued on the trade whims of a wigmaker? Why should it be issued on the strength of German beer? Why should it be issued on the crop of unplanted beans to be grown in Chile for Japanese consumption? Why should the Government of the United States be compelled to issue many billions of dollars every year to pay the debts of one foreigner to another foreigner? Was it for this that our national-bank depositors had their money taken out of our banks and shipped abroad? Was it for this that they had to lose it? Why should the public credit of the United States Government and likewise money belonging to our national-bank depositors be used to support foreign brewers, narcotic drug vendors, whiskey distillers, wigmakers, human-hair merchants, Chilean bean growers, and the like? Why should our national-bank depositors and our Government be forced to finance the munition factories of Germany and Soviet Russia?

Serving Foreign Interests

Mr. Chairman, if a German in Germany, wishes to sell wheelbarrows to another German, he can draw a bill in dollars and get the money out of the Federal Reserve banks before an American farmer could explain his request for a loan to move his crop to market. In Germany, when credit instruments are being given, the creditors say, “See you, it must be of a kind that I can cash at the reserve.” Other foreigners feel the same way. The reserve to which these gentry refer is our reserve, which, as you know, is entirely made up of money belonging to American bank depositors. I think foreigners should cash their own trade paper and not send it over here to bankers who use it to fish cash out of the pockets of the American people.

Mr. Chairman, there is nothing like the Federal Reserve pool of confiscated bank deposits in the world. It is a public trough of American wealth in which foreigners claim rights equal to or greater than those of Americans. The Federal Reserve banks are agents of the foreign central banks. They use our bank depositors’ money for the benefit of their foreign principals. They barter the public credit of the United States Government and hire it out to foreigners at a profit to themselves.

All this is done at the expense of the United States Government, and at a sickening loss to the American people. Only our great wealth enabled us to stand the drain of it as long as we did.

I believe that the nations of the world would have settled down after the World War more peacefully if we had not had this standing temptation here — this pool of our bank depositors’ money given to private interests and used by them in connection with illimitable drafts upon the public credit of the United States Government. The Federal Reserve Board invited the world to come in and to carry away cash, credit, goods, and everything else of value that was movable. Values amounting to many billions of dollars have been taken out of this country by the Federal Reserve Board and the Federal Reserve banks for the benefit of their foreign principals. The United States has been ransacked and pillaged. Our structures have been gutted and only the walls are left standing.

While this crime was being perpetrated everything the world could rake up to sell us was brought in here at our own expense by the Federal Reserve Board and the Federal Reserve banks until our markets were swamped with unneeded and unwanted imported goods priced far above their value and made to equal the dollar volume of our honest exports and to kill or reduce our favorable balance of trade. As agents of the foreign central banks, the Federal Reserve Board and the Federal Reserve banks try by every means within their power to reduce our favorable balance of trade. They act for their foreign principals and they accept fees from foreigners for acting against the best interests of the United States. Naturally there has been great competition among foreigners for the favors of the Federal Reserve Board.

What we need to do is to send the reserves of our national banks home to the people who earned and produced them and who still own them and to the banks which were compelled to surrender them to predatory interests. We need to destroy the Federal Reserve pool, wherein our national-bank reserves are impounded for the benefit of the foreigners. We need to make it very difficult for outlanders to draw money away from us. We need to save America for Americans.

Mr. Chairman, when you hold a $10 Federal Reserve note in your hand you are holding a piece of paper which sooner or later is going to cost the United States Government $10 in gold, unless the Government is obliged to give up the gold standard [which it later did --ed]. It is protected by a reserve of 40 per cent or $4 in gold. It is based on Limburger cheese, reputed to be in foreign warehouses; or on cans purported to contain peas but which may contain salt water instead; or on horse meat; illicit drugs; bootleggers’ fancies; rags and bones from Soviet Russia of which the United States imported over a million dollars’ worth last year; on wines, whiskey, natural gas, on goat or dog fur, garlic on the string, or Bombay ducks. If you like to have paper money which is secured by such commodities, you have it in the Federal Reserve note. If you desire to obtain the thing of value upon which this paper currency is based — that is, the Limburger cheese, the whiskey, the illicit drugs, or any of the other staples — you will have a very hard time finding them. Many of these worshipful commodities are in foreign countries. Are you going to Germany to inspect her warehouses to see if the specified things of value are there? I think not. And what is more, I do not think you would find them there if you did go.

Immense sums belonging to our national-bank depositors have been given to Germany on no collateral security whatever. The Federal Reserve Board and the Federal Reserve banks have issued United States currency on mere finance drafts drawn by Germans. Billions upon billions of our money has been pumped into Germany and money is still being pumped into Germany by the Federal Reserve Board and the Federal Reserve banks. Her worthless paper is still being negotiated here and renewed here on the public credit of the United States Government and at the expense of the American people. On April 27, 1932, the Federal Reserve outfit sent $750,000, belonging to American bank depositors, in gold to Germany. A week later, another $300,000 in gold was shipped to Germany in the same way. About the middle of May $12,000,000 in gold was shipped to Germany by the Federal Reserve Board and the Federal Reserve banks. Almost every week there is a shipment of gold to Germany. These shipments are not made for profit on the exchange since the German marks are below parity with the dollar.

Mr. Chairman, I believe that the national-bank depositors of the United States are entitled to know what the Federal Reserve Board and the Federal Reserve banks are doing with their money. There are millions of national-bank depositors in this country who do not know that a percentage of every dollar they deposit in a member bank of the Federal Reserve system goes automatically to American agents of the foreign banks and that all their deposits can be paid away to foreigners without their knowledge or consent by the crooked machinery of the Federal Reserve act and the questionable practices of the Federal Reserve Board and the Federal Reserve banks. Mr. Chairman, the American people should be told the truth by their servants in office.

In 1930 we had over half a billion dollars outstanding daily to finance foreign goods stored in or shipped between countries. In its yearly total, this item amounts to several billion dollars. What goods are those on which the Federal Reserve banks yearly pledge several billions of dollars of the public credit of the United States? What goods are those which are hidden in European and Asiatic storehouses and which have never been seen by any officer of this Government, but which are being financed on the public credit of the United States Government? What goods are those upon which the United States Government is being obligated by the Federal Reserve banks to issue Federal Reserve notes to the extent of several billions of dollars a year?

Acceptance Banking

The Federal Reserve Board and the Federal Reserve banks have been international bankers from the beginning, with the United States Government as their enforced banker and supplier of currency. But it is none the less extraordinary to see those twelve private credit monopolies buying the debts of foreigners against foreigners in all parts of the world and asking the Government of the United States for new issues of Federal Reserve notes in exchange for them.

I see no reason why the American taxpayers should be hewers of wood and drawers of water for the European and Asiatic customers of the Federal Reserve banks. I see no reason why a worthless acceptance drawn by a foreign swindler as a means of getting gold out of this country should receive the lowest and choicest rate from the Federal Reserve Board and be treated as better security than the note of an American farmer living on American land.

The magnitude of the acceptance racket, as it has been developed by the Federal Reserve banks, their foreign correspondents, and the predatory European-born bankers who set up the Federal Reserve institution here and taught our own brand of pirates how to loot the people — I say the magnitude of this racket is estimated to be in the neighborhood of $9,000,000,000 a year. In the past ten years it is said to have amounted to $90,000,000,000. In my opinion, it has amounted to several times as much. Coupled with this you have, to the extent of billions of dollars, the gambling in the United States securities, which takes place in the same open discount market — a gambling upon which the Federal Reserve Board is now spending $100,000,000 per week.

Federal Reserve notes are taken from the United States Government in unlimited quantities. Is it strange that the burden of supplying these immense sums of money to the gambling fraternity has at last proved too heavy for the American people to endure? Would it not be a national calamity if the Federal Reserve Board and the Federal Reserve banks should again bind this burden down on the backs of the American people and, by means of the long rawhide whips of the credit masters, compel them to enter another seventeen years of slavery? They are trying to do that now. They are taking $100,000,000 of the public credit of the United States Government every week in addition to all their other seizures, and they are spending that money in the nefarious open market in New York City in a desperate gamble to reestablish their graft as a going concern.

They are putting the United States Government in debt to the extent of $100,000,000 a week, and with the money they are buying up our Government securities for themselves and their foreign principals. Our people are disgusted with the experiments of the Federal Reserve Board. The Federal Reserve Board is not producing a loaf of bread, a yard of cloth, a bushel of corn, or a pile of cordwood by its check-kiting operations in the money market.

A fortnight or so ago great aid and comfort was given to Japan by the firm of A. Gerli & Sons, of New York, an importing firm, which bought $16,000,000 worth of raw silk from the Japanese Government. Federal Reserve notes will be issued to pay that amount to the Japanese Government, and these notes will be secured by money belonging to our national-bank depositors.

Why should United States currency be issued on this debt? Why should United States currency be issued to pay the debt of Gerli & Sons to the Japanese Government? The Federal Reserve Board and the Federal Reserve banks think more of the silkworms of Japan than they do of American citizens. We do not need $16,000,000 work of silk in this country at the present time, not even to furnish work to dyers and finishers. We need to wear home-grown and American-made clothes and to use our own money for our own goods and staples. We could spend $16,000,000 in the United States of America on American children and that would be a better investment for us than Japanese silk purchased on the public credit of the United States Government.

Mr. Speaker, on the 13th of January of this year I addressed the House on the subject of the Reconstruction Finance Corporation. In the course of my remarks I made the following statement:

In 1928 the member banks of the Federal Reserve system borrowed $60,598,690,000 from the Federal Reserve banks on their fifteen-day promissory notes. Think of it! Sixty billion dollars payable upon demand in gold in the course of one single year. The actual payment of such obligations calls for six times as much monetary gold as there is in the entire world. Such transactions represent a grant in the course of one single year of about $7,000,000 to every member bank of the Federal Reserve system. Is it any wonder that there is a depression in this country? Is it any wonder that American labor, which ultimately pays the cost of all banking operations of this country, has at last proved unequal to the task of supplying this huge total of cash and credit for the benefit of the stock-market manipulators and foreign swindlers?

Mr. Chairman, some of my colleagues have asked for more specific information concerning this stupendous graft, this frightful burden which has been placed on the wage earners and taxpayers of the United States for the benefit of the Federal Reserve Board and the Federal Reserve banks. They were surprised to learn that member banks of the Federal Reserve system had received the enormous sum of $60,598,690,000 from the Federal Reserve Board and the Federal Reserve banks on their promissory notes in the course of one single year, namely, 1928. Another Member of this House, Mr. Beedy, the honorable gentleman from Maine, has questioned the accuracy of my statement and has informed me that the Federal Reserve Board denies absolutely that these figures are correct. This Member has said to me that the thing is unthinkable, that it can not be, that it is beyond all reason to think that the Federal Reserve Board and the Federal Reserve banks should have so subsidized and endowed their favorite banks of the Federal Reserve system. This Member is horrified at the thought of a graft so great, a bounty so detrimental to the public welfare as sixty and a half billion dollars a year and more shoveled out to favored banks of the Federal Reserve system.

In 1930, while the speculating banks were getting out of the stock market at the expense of the general public, the Federal Reserve Board and the Federal Reserve banks advanced them $13,022,782,000. This shows that when the banks were gambling on the public credit of the United States Government as represented by the Federal Reserve currency, they were subsidized to any amount they required by the Federal Reserve Board and the Federal Reserve banks. When the swindle began to fall, the bankers knew it in advance and withdrew from the market. They got out with whole skins and left the people of the United States to pay the piper.

On November 2, 1931, I addressed a letter to the Federal Reserve Board asking for the aggregate total of member bank borrowing in the years 1928, 1929, 1930. In due course, I received a reply from the Federal Reserve Board, dated November 9, 1931, the pertinent part of which reads as follows:

My Dear Congressman:

In reply to your letter of November 2, you are advised that the aggregate amount of fifteen-day promissory notes of member banks during each of the past three calender years has been as follows:

1928 . . . . . . . . . . . . . .$60,598,690,000

1929 . . . . . . . . . . . . . . 58,046,697,000

1930 . . . . . . . . . . . . . . 13,022,782,000

This will show the gentleman from Maine the accuracy of my statement. As for the denial of these facts made to him by the Federal Reserve Board, I can only say that it must have been prompted by fright, since hanging is too good for a Government board which permitted such a misuse of Government funds and credit.

My friend from Kansas, Mr. McGugin, has stated that he thought the Federal Reserve Board and the Federal Reserve banks lent money by rediscounting. So they do, but they lend comparatively little that way. The real rediscounting that they do has been called a mere penny in the slot business. It is too slow for genuine high flyers. They discourage it. They prefer to subsidize their favorite banks by making these $60,000,000,000 advances, and they prefer to acquire acceptances in the notorious open discount market in New York, where they can use them to control the prices of stocks and bonds on the exchanges. For every dollar they advanced on rediscounts in 1928 they lent $33 to their favorite banks for gambling purposes. In other words, their rediscounts in 1928 amounted to $1,814,271,000, while their loans to member banks amounted to $60,598,690,000. As for their open-market operations, these are on a stupendous scale, and no tax is paid on the acceptances they handle; and their foreign principals, for whom they do a business of several billion dollars every year, pay no income tax on their profits to the United States Government.

International Swindlers

This is the John Law swindle all over again. The theft of Teapot Dome was trifling compared to it. What king ever robbed his subjects to such an extent as the Federal Reserve Board and the Federal Reserve banks have robbed us? Is it any wonder that there have lately been ninety cases of starvation in one of the New York hospitals? Is there any wonder that the children of this country are being dispersed and abandoned?

The Government and the people of the United States have been swindled by swindlers deluxe to whom the acquisition of American gold or a parcel of Federal Reserve notes presented no more difficulty than the drawing up of a worthless acceptance in a country not subject to the laws of the United States, by sharpers not subject to the jurisdiction of the United States courts, sharpers with a strong banking “fence” on this side of the water — a “fence” acting as a receiver of the worthless paper coming from abroad, endorsing it and getting the currency out of the Federal Reserve banks for it as quickly as possible, exchanging that currency for gold, and in turn transmitting the gold to its foreign confederates.

Such were the exploits of Ivar Kreuger, Mr. Hoover‘s friend, and his hidden Wall Street backers. Every dollar of the billions Kreuger and his gang drew out of this country on acceptances was drawn from the Government and the people of the United States through the Federal Reserve Board and the Federal Reserve banks. The credit of the United States Government was peddled to him by the Federal Reserve Board and the Federal Reserve banks for their own private gain. That is what the Federal Reserve Board and the Federal Reserve banks have been doing for many years. They have been peddling the credit of this Government and the signature of this Government to the swindlers and speculators of all nations. That is what happens when a country forsakes its Constitution and gives its sovereignty over the public currency to private interests. Give them the flag and they will sell it.

The nature of Kreuger’s organized swindle and the bankrupt condition of Kreuger’s combine was known here last June when Hoover sought to exempt Kreuger’s loan to Germany of $125,000,000 from the operation of the Hoover moratorium. The bankrupt condition of Kreuger’s swindle was known here last summer when $30,000,000 was taken from the American taxpayers by certain bankers in New York for the ostensible purpose of permitting Kreuger to make a loan to Colombia. Colombia never saw that money. The nature of Kreuger’s swindle and the bankrupt condition of Kreuger was known here in January when he visited his friend, Mr. Hoover, at the White House. It was known here in March before he went to Paris and committed suicide there.

Mr. Chairman, I think the people of the United States are entitled to know how many billions of dollars were placed at the disposal of Kreuger and his gigantic combine by the Federal Reserve Board and the Federal Reserve banks and to know how much of our Government currency was issued and lost in the financing of that great swindle in the years during which the Federal Reserve Board and the Federal Reserve banks took care of Kreuger’s requirements.

Mr. Chairman, I believe there should be a congressional investigation of the operations of Kreuger and Toll in the United States and that Swedish Match, International Match, the Swedish-American Investment Corporation, and all related enterprises, including the subsidiary companies of Kreuger and Toll, should be investigated and that the issuance of United States currency in connection with those enterprises and the use of our national-bank depositors’ money for Kreuger’s benefit should be made known to the general public. I am referring, not only to the securities which were floated and sold in this country, but also to the commercial loans to Kreuger’s enterprises and the mass financing of Kreuger’s companies by the Federal Reserve Board and the Federal Reserve banks and the predatory institutions which the Federal Reserve Board and the Federal Reserve banks shield and harbor.

A few days ago, the President of the United States, with a white face and shaking hands, went before the Senate on behalf of the moneyed interests and asked the Senate to levy a tax on the people so that foreigners might know that the United States would pay its debt to them. Most Americans thought it was the other way around. What do the United States owe to foreigners? When and by whom was the debt incurred? It was incurred by the Federal Reserve Board and the Federal Reserve banks when they peddled the signature of this Government to foreigners for a price. It is what the United States Government has to pay to redeem the obligations of the Federal Reserve Board and the Federal Reserve banks. Are you going to let those thieves get off scot free? Is there one law for the looter who drives up to the door of the United States Treasury in his limousine and another for the United States veterans who are sleeping on the floor of a dilapidated house on the outskirts of Washington?

The Baltimore & Ohio Railroad is here asking for a large loan from the people and the wage earners and the taxpayers of the United States. It is begging for a hand-out from the Government. It is standing, cap in hand, at the door of the Reconstruction Finance Corporation, where all the other jackals have gathered to the feast. It is asking for money that was raised from the people by taxation, and wants this money of the poor for the benefit of Kuhn, Loeb & Co., the German international bankers. Is there one law for the Baltimore & Ohio Railroad and another for the needy veterans it threw off its freight cars the other day? Is there one law for sleek and prosperous swindlers who call themselves bankers and another law for the soldiers who defended the United States flag?

Mr. Chairman, some people are horrified because the collateral behind Kreuger and Toll debentures was removed and worthless collateral substituted for it. What is this but what is being done daily by the Federal Reserve banks? When the Federal Reserve act was passed, the Federal Reserve banks were allowed to substitute “other like collateral” for collateral behind Federal Reserve notes but by an amendment obtained at the request of the corrupt and dishonest Federal Reserve Board, the act was changed so that the word “like” was stricken out. All that immense trouble was taken here in Congress so that the law would permit the Federal Reserve banks to switch collateral. At the present time behind the scenes in the Federal Reserve banks there is a night-and-day movement of collateral.

A visiting Englishman, leaving the United States a few weeks ago, said that things would look better here after “they cleaned up the mess at Washington.” Cleaning up the mess consists in fooling the people and making them pay a second time for the bad foreign investments of the Federal Reserve Board and the Federal Reserve banks. It consists in moving that heavy load of dubious and worthless foreign paper — the bills of wigmakers, brewers, distillers, narcotic-drug vendors, munition makers, illegal finance drafts, and worthless foreign securities, out of the banks and putting it on the back of American labor.

That is what the Federal Reserve Board is doing now. They talk about loans to banks and railroads but they say very little about that other business of theirs which consists in relieving the swindlers who promoted investment trusts in this country and dumped worthless foreign securities into them and then resold that mess of pottage to American investors under cover of their own corporate titles. The Reconstruction Finance Corporation is taking over those worthless securities from those investment trusts with United States Treasury money at the expense of the American taxpayer and the wage earner.

It will take us twenty years to redeem our Government. Twenty years of penal servitude to pay off the gambling debts of the traitorous Federal Reserve Board and the Federal Reserve banks and to earn again that vast flood of American wages and savings, bank deposits, and United States Government credit which the Federal Reserve Board and the Federal Reserve banks exported out of this country to their foreign principals.

The Federal Reserve Board and the Federal Reserve banks lately conducted an anti-hoarding campaign here. Then they took that extra money which they had persuaded the American people to put into the banks and they sent it to Europe along with the rest. In the last several months, they have sent $1,300,000,000 in gold to their foreign employers, their foreign masters, and every dollar of that gold belonged to the people of the United States and was unlawfully taken from them.

Is not it high time that we had an audit of the Federal Reserve Board and the Federal Reserve banks and an examination of all our Government bonds and securities and public moneys instead of allowing the corrupt and dishonest Federal Reserve Board and the Federal Reserve banks to speculate with those securities and this cash in the notorious open discount market of New York City?

Fiat Money

Mr. Chairman, within the limits of the time allowed me, I can not enter into a particularized discussion of the Federal Reserve Board and the Federal Reserve banks. I have singled out the Federal Reserve currency for a few remarks because there has lately been some talk here of “fiat money.” What kind of money is being pumped into the open discount market and through it into foreign channels and stock exchanges? Mr. Mills of the Treasury has spoken here of his horror of the printing presses and his horror of dishonest money. He has no horror of dishonest money. If he had, he would be no party to the present gambling of the Federal Reserve Board and the Federal Reserve banks in the nefarious open discount market of New York, a market in which the sellers are represented by ten great discount dealer corporations owned and organized by the very banks which own and control the Federal Reserve Board and the Federal Reserve banks. Fiat money, indeed!

After the several raids on the Treasury Mr. Mills borrows the speech of those who protested against those raids and speaks now with pretended horror of a raid on the Treasury. Where was Mr. Mills last October when the United States Treasury needed $598,000,000 of the taxpayers’ money which was supposed to be in the safe-keeping of [Treasury Secretary] Andrew W. Mellon in the designated depositories of Treasury funds, and which was not in those depositories when the Treasury needed it? Mr. Mills was the Assistant Secretary of the Treasury then, and he was at Washington throughout October, with the exception of a very significant week he spent at White Sulphur Springs closeted with international bankers, while the Italian minister, Signor Grandi, was being entertained — and bargained with — at Washington.

What Mr. Mills is fighting for is the preservation whole and entire of the banker’s monopoly of all the currency of the United States Government. What Mr. Patman proposes is that the Government shall exercise its sovereignty to the extent of issuing some currency for itself. This conflict of opinion between Mr. Mills as the spokesman of the bankers and Mr. Patman as the spokesman of the people brings the currency situation here into the open. Mr. Patman and the veterans are confronted by a stone wall — the wall that fences in the bankers with their special privileges. Thus, the issue is joined between the host of democracy, of which the veterans are a part, and the men of the king’s bank, the would-be aristocrats, who deflated American agriculture and robbed this country for the benefit of their foreign principals.

Mr. Chairman, last December, I introduced a resolution here asking for an examination and an audit of the Federal Reserve Board and the Federal Reserve banks and all related matters. If the House sees fit to make such an investigation, the people of the United States will obtain information of great value. This is a Government of the people, by the people, for the people. Consequently, nothing should be concealed from the people. The man who deceives the people is a traitor to the United States. The man who knows or suspects that a crime has been committed and who conceals or covers up that crime is an accessory to it.

Mr. Speaker, it is a monstrous thing for this great Nation of people to have its destinies presided over by a traitorous Government board acting in secret concert with international usurers. Every effort has been made by the Federal Reserve Board to conceal its power but the truth is the Federal Reserve Board has usurped the Government of the United States. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will. No man and no body of men is more entrenched in power than the arrogant credit monopoly which operates the Federal Reserve Board and the Federal Reserve banks.

These evil-doers have robbed this country of more than enough money to pay the national debt. What the National Government has permitted the Federal Reserve Board to steal from the people should now be restored to the people. The people have a valid claim against the Federal Reserve Board and the Federal Reserve banks. If that claim is enforced, Americans will not need to stand in the breadlines or to suffer and die of starvation in the streets. Homes will be saved, families will be kept together, and American children will not be dispersed and abandoned. The Federal Reserve Board and the Federal Reserve banks owe the United States Government an immense sum of money. We ought to find out the exact amount of the people’s claim. We should know the amount of the indebtedness of the Federal Reserve Board and the Federal Reserve banks to the people and we should investigate this treacherous and disloyal conduct of the Federal Reserve Board and the Federal Reserve banks.

Here is a Federal Reserve note. Immense numbers of these notes are now held abroad. I am told that they amount to upwards of a billion dollars. They constitute a claim against our Government and likewise a claim against the money our people have deposited in the member banks of the Federal Reserve system. Our people’s money to the extent of $1,300,000,000 which has within the last few months been shipped abroad to redeem Federal Reserve notes and to pay other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve banks. The greater part of our monetary stock has been shipped to foreigners. Why should we promise to pay the debts of foreigners to foreigners? Why should our Government be put into the position of supplying money to foreigners? Why should the Federal Reserve Board and the Federal Reserve banks be permitted to finance our competitors in all parts of the world?

Do you know why the tariff was raised? It was raised to shut out the flood of Federal Reserve goods pouring in here from every quarter of the globe — cheap goods, produced by cheaply paid foreign labor on unlimited supplies of money and credit sent out of this country by the dishonest and unscrupulous Federal Reserve Board and the Federal Reserve banks. Go out in Washington to buy an electric light bulb and you will probably be offered one that was made in Japan on American money. Go out to buy a pair of fabric gloves and inconspicuously written on the inside of the gloves that will be offered to you will be found the words “made in Germany” and that means “made on the public credit of the United States Government paid to German firms in American gold taken from the confiscated bank deposits of the American people.”

The Federal Reserve Board and the Federal Reserve banks are spending $100,000,000 a week buying Government securities in the open market and are making a great bid for foreign business. They are trying to make rates so attractive that the human-hair merchants and distillers and other business entities in foreign lands will come here and hire more of the public credit of the United States Government and pay the Federal Reserve outfit for getting it for them.

The International Superstate

Mr. Chairman, when the Federal Reserve act was passed, the people of the United States did not perceive that a world system was being set up here which would make the savings of an American school-teacher available to a narcotic-drug vendor in Macao. They did not perceive that the United States were to be lowered to the position of a coolie country which has nothing but raw materials and heavy goods for export; that Russia [and China --ed] was destined to supply the man power and that this country was to supply financial power to an international superstate — a superstate controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure.

The people of the United States are being greatly wronged. If they are not, then I do not know what “wronging the people” means. They have been driven from their employments. They have been dispossessed of their homes. They have been evicted from their rented quarters. They have lost their children. They have been left to suffer and to die for lack of shelter, food, clothing, and medicine.

The wealth of the United States and the working capital of the United States has been taken away from them and has either been locked in the vaults of certain banks and the great corporations or exported to foreign countries for the benefit of the foreign customers of those banks and corporations. So far as the people of the United States are concerned, the cupboard is bare. It is true that the warehouses and coal yards and grain elevators are full, but the warehouses and coal yards and grain elevators are padlocked and the great banks and corporations hold the keys. The sack of the United States by the Federal Reserve Board and the Federal Reserve banks is the greatest crime in history.

Mr. Chairman, a serious situation confronts the House of Representatives to-day. We are trustees of the people and the rights of the people are being taken away from them. Through the Federal Reserve Board and the Federal Reserve banks, the people are losing the rights guaranteed to them by the Constitution. Their property has been taken from them without due process of law. Mr. Chairman, common decency requires us to examine the public accounts of the Government and see what crimes against the public welfare have and are being committed.

What is needed here is a return to the Constitution of the United States. We need to have a complete divorce of Bank and State. The old struggle that was fought out here in Jackson’s day must be fought over again. The independent United States Treasury should be re-established and the Government should keep its own money under lock and key in the building the people provided for that purpose. Asset currency, the device of the swindler, should be done away with. The Government should buy gold and issue United States currency on it. The business of the independent bankers should be restored to them. The State banking systems should be freed from coercion The Federal Reserve districts should be abolished and the State boundaries should be respected. Bank reserves should be kept within the borders of the States whose people own them, and this reserve money of the people should be protected so that the international bankers and acceptance bankers and discount dealers can not draw it away from them. The exchanges should be closed while we are putting our financial affairs in order. The Federal Reserve act should be repealed and the Federal Reserve banks, having violated their charters, should be liquidated immediately. Faithless Government officers who have violated their oaths of office should be impeached and brought to trial.

Unless this is done by us, I predict that the American people, outraged, robbed, pillaged, insulted, and betrayed as they are in their own land, will rise in their wrath and send a President here who will sweep the money changers out of the temple.

 

WesternFront America

It has been said that the draftsman who was employed to write the text of the Federal Reserve bill used a text of the Aldrich bill for his purpose. It has been said that the language of the Aldrich bill was used because the Aldrich bill had been drawn up by expert lawyers and seemed to be appropriate. It was indeed drawn up by lawyers. The Aldrich bill was created by acceptance bankers of European origin in New York City. It was a copy and in general a translation of the statutes of the Reichsbank and other European central banks.

Half a million dollars was spent one part of the propaganda organized by those same European bankers for the purpose of misleading public opinion in regard to it, and for the purpose of giving Congress the impression that there was an overwhelming popular demand for that kind of banking legislation and the kind of currency that goes with it, namely, an asset currency based on human debts and obligations instead of an honest currency based on gold and silver values. Dr. H. Parker Willis had been employed by the Wall Street bankers and propagandists and when the Aldrich measure came to naught and he obtained employment with Carter Glass to assist in drawing a banking bill for the Wilson administration, he appropriated the text of the Aldrich bill for his purpose. There is no secret about it. The text of the Federal Reserve act was tainted from the beginning.

Not all of the Democratic Members of the Sixty-third Congress voted for this great deception. Some of them remembered the teachings of Jefferson; and, through the years, there had been no criticisms of the Federal Reserve Board and the Federal Reserve banks so honest, so out-spoken, and so unsparingly as those which have been voiced here by Democrats. Again, although a number of Republicans voted for the Federal Reserve act, the wisest and most conservative members of the Republican Party would have nothing to do with it and voted against it.

A few days before the bill came to a vote, Senator Henry Cabot Lodge, of Massachusetts, wrote to Senator John W. Weeks as follows:

New York City, December 17, 1913
My Dear Senator Weeks:

Throughout my public life I have supported all measures designed to take the Government out of the banking business…. This bill puts the Government into the banking business as never before in our history and makes, as I understand it, all notes Government notes when they should be bank notes.

The powers vested in the Federal Reserve Board seem to me highly dangerous, especially where there is political control of the Board. I should be sorry to hold stock in a bank subject to such domination. The bill as it stands seems to me to open the way to a vast inflation of the currency. There is no necessity of dwelling upon this point after the remarkable and most powerful argument of the senior Senator from New York. I can be content here to follow the example of the English candidate for Parliament who thought it enough “to say ditto to Mr. Burke.” I will merely add that I do not like to think that any law can be passed which will make it possible to submerge the gold standard in a flood of irredeemable paper currency.

I had hoped to support this bill, but I can not vote for it as it stands, because it seems to me to contain features and to rest upon principles in the highest degree menacing to our prosperity, to stability in business, and to the general welfare of the people of the United States.

Very sincerely yours,
Henry Cabot Lodge

In eighteen years that have passed since Senator Lodge wrote that letter of warning all of his predictions have come true. The Government is in the banking business as never before. Against its will it has been made the backer of horse thieves and card sharps, bootleggers, smugglers, speculators, and swindlers in all parts of the world. Through the Federal Reserve Board and the Federal Reserve banks the riffraff of every country is operating on the public credit of this United States Government. Meanwhile, and on account of it, we ourselves are in the midst of the greatest depression we have ever known. Thus the menace to our prosperity, so feared by Senator Lodge, has indeed struck home. From the Atlantic to the Pacific our country has been ravaged and laid waste by the evil practices of the Federal Reserve Board and the Federal Reserve banks and the interests which control them. At no time in our history has the general welfare of the people of the United States been at a lower level or the mind of the people so filled with despair.

Recently in one of our States 60,000 dwelling houses and farms were brought under the hammer in a single day. According to the Rev. Father Charles E. Coughlin, who has lately testified before a committee of this House, 71,000 houses and farms in Oakland County, Michigan, have been sold and their erstwhile owners dispossessed. Similar occurrences have probably taken place in every county in the United States. The people who have thus been driven out are the wastage of the Federal Reserve act. They are the victims of the dishonest and unscrupulous Federal Reserve Board and Federal Reserve banks. Their children are the new slaves of the auction blocks in the revival here of the institution of human slavery.

In 1913, before the Senate Banking and Currency Committee, Mr. Alexander Lassen made the following statement:

“But the whole scheme of the Federal Reserve bank with its commercial-paper basis is an impractical, cumbersome machinery, is simply a cover, to find a way to secure the privilege of issuing money and to evade payment of as much tax upon circulation as possible, and then control the issue and maintain, instead of reduce, interest rates. It is a system that, if inaugurated, will prove to the advantage of the few and the detriment of the people of the United States. It will mean continued shortage of actual money and further extension of credits; for when there is a lack of real money people have to borrow credit to their cost.”

A few days before the Federal Reserve act was passed Senator Elihu Root denounced the Federal Reserve bill as an outrage on our liberties and made the following prediction:

“Long before we wake up from our dreams of prosperity through an inflated currency, our gold, which alone could have kept us from catastrophe, will have vanished and no rate of interest will tempt it to return.”

If ever a prophecy came true, that one did. It was impossible, however, for those luminous and instructed thinkers to control the course of events. On December 23, 1913, the Federal Reserve bill became law, and that night Colonel House wrote to his hidden master in Wall Street as follows:

“I want to say a word of appreciation to you for the silent but no doubt effective work you have done in the interest of currency legislation and to congratulate you that the measure has finally been enacted into law. We all know that an entirely perfect bill, satisfactory to everybody, would have been an impossibility, and I feel quite certain that unless the President had stood as firm as he did we should likely have had no legislation at all. The bill is a good one in many respects; anyhow good enough to start with and to let experience teach us in what direction it needs perfection, which in due time we shall then get. In any event you have personally good reason to feel gratified with what has been accomplished.”

The words “unless the President had stood as firm as he did we should likely have had no legislation at all,” were a gentle reminder that it was Colonel House himself, the “holy monk,” who had kept the President firm.

The foregoing letter affords striking evidence of the manner in which the predatory interests then sought to control the Government of the United States by surrounding the Executive with the personality and the influence of a financial Judas. Left to itself and to the conduct of its own legislative functions without pressure from the Executive, the Congress would not have passed the Federal Reserve act. According to Colonel House, and since this was his report to his master, we may believe it to be true, the Federal Reserve act was passed because Wilson stood firm; in other words because Wilson was under the guidance and control of the most ferocious usurers in New York through their hireling, House. The Federal Reserve act became law the day before Christmas Eve in the year 1913, and shortly afterward the German international bankers, Kuhn, Loeb and Co., sent one of their partners here to run it.

 

WesternFront America

“Despite the Political Risks”

House Speaker John Boehner thinks he is going to persuade the American people that “sacrifices” are needed to further enable the illegitimate shadow government of rule by oligarchy, to conduct “business as usual.”

In order to understand the mediocrity of Boehner and the Republican Party in general, it is best to examine what this degenerate–in its present form– political party insists is vital for the solvency of the nation.

Like the communists(Democrats) the Republicans remain stuck on stupid, for they are not only out of touch with the American people, but like “Baghdad Bob” they fail to fathom the bombs and rockets of the Second American Revolution whistling around their ears.

The American people have nothing left to “give” to those who have taken it all.

This is the epitaph engraved on the tombstone of the republic.

The Republican Party is an abject FAILURE in promoting conservative principles, as it has allowed its luminaries to be those useful idiots and political hacks, who are in the pocket of vested interests.

Our lawmakers have allowed themselves to be bought–like so much penny candy–by the titans of international finance.

Republicans function in much the same manner the Jewish kapo comported himself in the Nazi concentration camps. In short, they are traitors to their own constituents and the American people.

“Read their lips;” Henceforth, the American people will NOT pledge allegiance to the New World Order and its calls for continued “sacrifice” of the dearest interests of the American people, to be made to the shadow government.

Boehner is foolish and should be removed for incompetence, if he thinks he is going to “curb” that which is the last underlying foundation of the American way of life, the social safety net.

For government to go after Social Security, is the equivalent of a poor peasant, selling his daughter into prostitution, to ameliorate his poverty.

It would be far better to “curb” the invasion of America by Mexico, which pawns itself off as some kind of “immigration” wave, in need of “comprehensive” reform.

Wasn’t it government which decreed that Social Security benefits should apply to illegal aliens? What a fantastic notion!

What is it about the Speaker of the House position? Why does it always seem to require the dumbest person on the planet to hold that title?

The true “pernicious culture of entitlements” is the notion that the international bankers should hold the purse strings of the American people, to establish a wholly owned corporate subsidiary in the Land of the Free and Home of the Brave.

Foreign policy–fueled by current “economic realities,” dictates that America will borrow money from Red China, to protect Taiwan from the PRC.

Let’s look at the insanity of the leader of the alleged “free world” living in bondage to usury, paying 600 Billion dollars a year in interest payments to ostensibly “borrow” that which is already granted to the American people under the Constitution; the power to coin money.

Congress abdicated its most sacred trust and squandered the wealth of the American people on a massive credit binge– like a reckless grasshopper, fiddling away the summer. Now that same dissolute political entity would ask for further “sacrifice?”

In Speaker Boehner’s weltanschauung, the “juice is worth the squeeze” and “America has no other choice.”

This is how a slave thinks and comports himself. A serf without any choice, but to submit to restraint.

The American people may not be able to cite figures and statistics, but they are smart enough to figure out that they are the ones being “squeezed” and the American worker is down to his last drop of blood and his last red plated cent.

The leather canteen has been twisted dry, in the desert wasteland which has become government funding operations.

The waterless canal of Capitol Hill leadership, delivers naught to the American people, but rivers of sand to bury them, not the life-giving waters of a debt-free monetary system.

Congress cannot think outside the box of usury, to administer the nation.

Before our “leaders” tackle the “suffocating problem” that entitlements pose to our national budget and our ability to have “fiscal accountability” in Washington, they should examine the real cause of our national misfortune and avoid the tendency to yet add another brick to the burden placed on the already broken back of the American taxpayer.

Republicans have failed to realize that true “welfare reform” means the end to all foreign aid and the end of a debt-based banking system, which all but ensures that the American people will continue to live in poverty and slavery to the international bankers forever.

Enactment of these two measures alone, will staunch the flow of lifeblood from the republic.

The real “elephant in the room” to be confronted, is the Republican Party, which does NOT have a clue on how to promote the general welfare, beyond slashing the Social Security benefits for those who can least afford to lose them.

Republicans should be working on tariff measures to restore American industry to American shores. They should be closing down military bases on foreign shores to save money, not discussing the trimming of social benefits for seniors and the disabled.

This political party cannot shoot straight for the American people, nor can it stand and deliver, even when prompted by Rep. Ron Paul. “Read the tea leaves.”

“William Bennett once said that ‘if a candidate tells you only things you want to hear, if he asks nothing of you, then give him nothing in return, certainly not your vote, because he is not telling you the truth.’”

This nation is well beyond the simple-minded times when the people looked to their leaders for solutions, or were inspired by them when asked by leadership to do their part.

Now it is the Governor of Arizona, telling the president to: “Do your job, Mr. President.”

The American people want GOP leadership to do its job and end the Federal Reserve, before the Fed ends this republic. We do NOT require lectures on how we must endure further austerity measures, as the fall guy and sucker called “Uncle Sap.”

It is now the time of the people–that is, the great struggle of the people vs. the banks has finally come to the fore. This is the American Revolution which beckons Congress to do its job and quit serving as a lackey and stooge to the international bankers, who create nothing but debt out of thin air.

Only the American people create tangible wealth through their labors and this wealth is being stolen by government-engineered inflation.

The American people are here to inform the GOP of what the people not only “ask,” but absolutely demand of their leaders.

That mandate of the American people who must live within their means, is that Congress do likewise by abolishing the Federal Reserve, ending all foreign aid and quit funding the phony storefront of the international bankers; the United Nations. The American empire, must be closed down, by bringing our troops home from the 150 countries which currently serve as American military outposts.

The American people have informed their leaders that these are the conservative principles needed to restore the solvency of our dying nation, with the emphasis being on banking reform as a “comprehensive” goal, to bring matters of state into alignment with the national interest.

Nowhere is it written in the United States Constitution that the American people will serve as debt slaves to the international bankers, nor that they will they be elected to play Santa Claus of the planet, through the bestowal of foreign aid to third world tyrants, while their own social safety benefits are slashed by government.

It is government which is the problem–not the solution. Our presidents from George Washington to Ronald W. Reagan have asserted this basic truth.

The American people–who are living within their means, even if it means becoming homeless– cannot be expected to make up the deficits of a fearful master, who will not live under the same rules of fiscal accountability.

“Government is not reason; it is not eloquence; it is force! Like fire, it is a dangerous servant and a fearful master.”

- George Washington

The United States government is complicit with the international bankers, in the crime of counterfeiting and robbing the American people of the fruits of their labors. It has committed treason against the nation, by mismanagement of the people’s purse.

The United States government is morally, spiritually and fiscally bankrupt.

“The author Frank Scully once said, ‘Why not go out on the limb? Isn’t that where the fruit is?’”

“Social Security, Medicare and Medicaid make up 60 percent of our federal budget and that slice of our federal budgetary pie is growing. No aspect of a budget can be balanced without tackling the biggest expense.”

One of he biggest expenses incurred is the turning of our nation into a flophouse for itinerant beggars of the Third World and calling it “comprehensive immigration reform,” as if the problem were merely confined to the Western Hemisphere of the planet.

The biggest expense remains the allowance of corporate hijack of our government, since the establishment of the Federal Reserve in 1913, by degenerate lawmakers.

America as a “safety valve” concept is the issue to be “tackled” and that is the glaring reason why entitlement programs for foreign interlopers must end–rather than going after American seniors and disabled individuals with the budget axe, who cannot make ends meet.

The third world corporate shock troop of the international bankers–the so-called ”guest worker,” has invaded industrialized nations in both hemispheres of the planet, to become a welfare ward of those respective nations.

No nation can even tread water financially, when encumbered by the ball and chain of mass invasion by the Third World.

True “comprehensive immigration reform,” is when a nation finally awakens from its long somnolence to perceive the pernicious nature of the host/parasite relationship, whether it be the inclusion of alien peoples forced onto our national family, or making provision for corporate welfare by the bailout of the very same banks, which deliberately engineered the financial meltdown, as another facet of the great Ponzi scheme.

The American people have been reduced to vassalage in the “New World Order” of the international bankers. They have been exhorted by presidential leadership that “Henceforth” they must pledge allegiance to the United Nations and one world government.

The American people are tired of playing lifeguard to the world. They are resolved to go upstream and find out who is throwing people into the water.

The real reason America can’t take care of its own, is because the nation is too busy incubating the hatchlings of foreign nations, in our national nest.

This major distraction ensures that Americans will remain focused on foreign invasion, while a central molesting bank–which deliberately imports these guest workers, to establish universal slavery– continues to pick the pockets of the American people with impunity.

This agenda has turned our nation into a human zoo and tangle of squabbling nationalities, modeled on a mini United Nations concept.

The ultimate capitalist coup of central bankers, has now been revealed as the establishment of global communism, under one central authority–the oligarchy. Borderlines are vanishing in the brave new world of Big Brother.

This largesse for foreigners also translates to free trade policies, which outsource our factors of production to foreign nations, as we import their “wretched refuse.”

Patrick J. Buchanan called free trade a “bright shining lie.” He also asked the question: “Where did Mexico get an auto industry?”

America needs to restore tariffs to rein in the corporations and force the return of American industry to our shores whether by practical steps or by outright military force.

Those corporate executives who commit economic treason against the nation, are the real entitlement artists and they should be held accountable–most particularly Boeing, for the transfer of sensitive stealth fighter jet technology to Red China.

Now the “wretched refuse” which infests our shores, is demanding that America shroud the Statue of Liberty in a burqa, prior to tearing it down, to come into compliance with Sharia law.

Relief is clearly not a Snickers candy bar, nor is it Rolaids for the tummy. It is in truth a sound deportation policy, based on profiling the enemy combatants and third world parasites within our country.

Funding for the Mexican Lebensborn of the so-called “anchor baby”–which is the harbinger of “La Reconquista”– should be first on the entitlement chopping block of government–NOT Social Security for Americans, which should remain exempt from all budget slashing.

The United States government will do anything, but tackle the central problem. That is why our own government is the real enemy to living within our means. It will not do its job of considering the American people first, before it elects instead to put them last in all considerations.

Dependence on such a criminal government, is the equivalent of enlisting the likes of serial killer Ted Bundy, to man the phone lines of a crisis hotline center.

Boehner and his cronies better start listening to the people, for if the speaker imagines he is now calling the shots; he is gravely mistaken. A military coup against Capitol Hill hangs just around the corner, whose trigger will be the crash of the dollar.

“We are not amused” with the performance of Boehner, thus far, for he lacks the vision to make the truly hard choices of going out on that limb, to pick the fruit of Liberty.

It is not enough for the GOP to venerate the memory of Ronald W. Reagan; the Republican Party must become the consciousness of President Reagan, Barry M. Goldwater and the Founding Fathers rolled-into-one, in order to prevail in the Battle of the Budget.

True leaders do NOT lament the passing on of their predecessors, nor do they establish a funeral cult around them, while they wistfully long for the departed golden age. Nostalgia is a poor excuse for failure to enact needed measures. Leaders resolve to keep alive the agenda of those they hold sacred, as the highest form of tribute.

That is the true conscience of a conservative; saving his country, by restoring its good faith and credit, not by raising the “debt ceiling.”

Banking reform is the vision which must animate America’s lawmakers.

© Thor H. Asgardson

 

WesternFront America

“I hope we shall crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country.”
- Thomas Jefferson

The “president’s” first glaring mistake in his SOTU address, was his failure to acknowledge the Second American Revolution and his place in it. Great events are transpiring around this “president’s” head, as the American people call on their leaders to abolish the Federal Reserve. Obama continues to assert a Baghdad Bob weltanschauung, assuring Americans that the “worst of the recession is over.”

Obama failed to fathom that the American people are in active revolt against the very same bank which caused the Founding Fathers to prosecute the Revolutionary War for economic freedom. His omission ensures that he will be regarded as “America’s Maximilian I of Mexico,” insofar as he still perceives the Mexican national as “being in the shadows,” when it is the American people who have actually been eclipsed from consideration, in clear favor of border breachers and the bankers who import them as slave labor, to the great detriment of our country.

In his first state of the union address Obama insulted the Supreme Court; now he insults the intelligence and resolve of the American people to turn back the Mexican reconquista, by insisting that the nation indulge the children of Mexican nationals, by adopting them.

The American people are not overly concerned with the future. We the People are concerned with the more immediate eternity of NOW! There is no “tomorrow” under this “president” who cannot produce his birth records “from Hawaii,” nor produce a single classmate who “remembers him” from Columbia University.

At the time of this writing, ten states of the Union are drafting eligibility-proof demands in their laws, to deal with any future usurpation of the presidency. This is unprecedented in American history.

In Georgia, for example, HB37 by Rep. Bobby Franklin not only demands original birth-certificate documentation, it provides a procedure for and declares that citizens have “standing” to challenge the documentation.

How does an usurper inspire visions of the future, when he cannot connect them to his direct past? The American people do NOT know who this man is, as he preaches to us as if we were children, telling us: “The rules have changed…” and so on.

The “president” is spellbound by his own monologue. The people easily see through a substandard performance.

The American people are a little more sophisticated than the gullible German peasants who hung on the every word of Reich Propaganda Minister Joseph Goebbels.

The American people know the Constitution has been reduced to a “god-damned piece of paper” by the Obama usurpation. His illegitimacy to hold high office, is like an exploding dye packet in his money bag of fiat funding for failed ideas, which will color all the counterfeit currency he foists onto the American people, in the form of borrowed money from the Federal Reserve.

The American people are well aware of the fact that “the rules” and those who play by them are a sucker’s shell and pea game, when stacked up against the economic treason committed against America by corporations, which have grown beyond the purview of the American people. These corporations have become the greatest threat to our national security, as the bottom line with them is the almighty dollar–not love of country.

There was no talk by Obama of reining-in the corporations, nor imposing a 25% tariff on Chinese goods entering America, to restore a level playing field in the trade arena between the United States and China.

Red China is busy partitioning America for spare parts and technology, including buying up all of our strategic assets in an economic chess board game and all Obama can do is talk about the need for gifting Mexican nationals. His attention span is stuck on stupid, as he refuses to focus on a job which is clearly beyond his abilities.

The state of the Union is that America is declining in power and influence under the Obama watch.

The United States of America needs to resolve the Second Mexican War quickly, by expelling the Mexican occupation army, so that this nation may concentrate on matters more urgent, than providing a “safety valve” for a parasitic hostile foreign power to the South, with designs on American territory.

Charity begins at home  with real Americans, not the spawn of foreign nationals who broke into our country  as common burglars, knowing full well the future ramifications of their intrusion.

Obama did not take a cue from Donald Trump’s magnificent idea of imposing a flat 25% tariff on Red China for all its imports into this country. Such an idea would have made a grand central proposal in Obama’s SOTU speech, which would have paved the way for changing the equation of “fuzzy math” this nation continually computes.

There was no discussion of specific measures being taken by the Obama administration, to correct the trade imbalance. There was praise of Red China, however, as if America should emulate the pirate nation which steals our technology from us.

Trade is war, but this “president” does not understand the many faces of war.

Rather than discussing concrete steps to be taken in reclaiming our factors of production from the Third World and returning American industry to the homeland, the fatalistic assessment of this “president” is that: “Those jobs aren’t coming back.”

American industry has fled our shores and we are bankrupt. If an American president starts with this honest appraisal, he can take steps to rectify the situation, including dissolving the Fed by executive order and slapping a very large tariff on foreign imports.

There is no one in the Obama administration with the right stuff to put our ship of state on an even keel, which will steer it clear of the reef of financial ruination under usury.

So what is there left for the American people to compete for when their industrial base has fled to foreign shores; table scraps from Chinese overlords, who buy up American companies?

The state of our Union is such that the American people should be examining how Red China prosecutes the stealth technology of economic warfare, to undermine and supplant us as the world’s only superpower.

That which was delivered for posterity in this SOTU, was the trite speech of a condescending snake oil salesman, who thinks he can pull the wool over the eyes of the people with fancy talk about American exceptionalism, which he clearly does not believe in, except when it’s time to deliver a state of the Union speech and act presidential for the “rubes” he abhors.

There was no mention of the American people regaining their economic destiny by any plan for banking reform being taken by this administration, to abolish the corporate stranglehold imposed over this nation by the extralegal Federal Reserve.

There was also no discussion of how the dollar has declined 97% in value under the inept “stewardship” of the so-called “Federal Reserve.” What good are jobs and savings accounts, when the money has no value?

“We are undone, my dear sir, if legislation is still permitted which makes our money, much or little, real or imaginary, as the moneyed interests shall choose to make it.”
- Thomas Jefferson

The current dismal state of affairs for our Union, demands an extraordinary effort by all Americans to get involved in the affairs of government, before our dearest interests are irretrievably bartered away.

Thomas Jefferson once said: “Do you know who you are? Don’t ask, act. Action will delineate and define you.” And yet this president feels he has to tell the American people who and what we are, because we have become so dumbed down by “immigration” we need to be spurred into action by pie-in-the-sky, homespun homilies from The Nation’s Cheerleader.

Obama–like Sputnik–is in his own orbit, far above the cares and daily concerns of those he alleges to be his countrymen.

“The issue which has swept down the centuries and which will have to be fought sooner or later is The People vs. The Banks.”
- Lord Acton, Lord Chief Justice of England, 1875

The American people have now arrived at the crossroads Lord Acton foresaw, in their resolve to free themselves from debt slavery to usury and yet this ineffective president offered them nothing tangible as a solution to the mountain of debt which buries our nation. What he offered was Kumbaya platitudes for the digestion of the witless.

He must already imagine Americans are proles in “Big Brother’s New World Order.”

As for being “poised for progress” it seems the only thing the “president” is “poised” for, is to assist the Mexican “reconquista” of America, by granting an amnesty anchor to illegal alien invaders from Mexico, against the wishes of the American people.

Obama’s interference in the sovereign affairs of the great state of Arizona, speaks volumes regarding his nefarious intentions toward his SOTU promise of border security enforcement.

“Just recently, China became the home to the world’s largest private solar research facility, and the world’s fastest computer.”
Barack Hussein Obama

Do tell, Obama!

How did China recently become “home” to what has ostensibly been an “American corporation,” based in the Phoenix/Tempe, AZ area? Is it the same process which turned Boeing from an “American company” into a Chinese one?

“…And where did Mexico get an auto industry?”
Patrick J. Buchanan

“China is currently the world’s leader in

solar energy, so it’s only logical for U.S. companies to gain an edge by collaborating with the powerhouse nation. Recently US-based First Solar Inc. announced that it will join forces with a major Chinese state-owned utility company, beginning construction on what’s anticipated to be one of the world’s biggest solar power plants.”

Economic treason is “only logical” to a corporation which allows America’s enemy to “gain an edge,” by “collaborating” with the enemy against the national interest.

“Phil Condit

, the head of Boeing, told an interviewer in 1997 that he would be delighted if, in 20 years ‘…no one thought of Boeing as an American company. My goal,’ he said, ‘is to rid [Boeing] of its image as an American company.’ When I first penned those words in the book, ‘Prince Albert: Prophet of Utopia’ in 2000, I noted that ‘…in less than that time, Boeing and Lockheed will both largely be viewed as Chinese companies by the American people.’

Today, what looks very much like Boeing Stealth technology appears to have been used to build China’s new J-20 Stealth jet fighter giving, some observers say, China a technological edge over the United States. Boeing got it’s wish. Boeing is now headquartered in China, and China owns a fairly substantial block of Boeing stock. The question is, how privy is China to Boeing industrial secrets? Particularly those tied to stealth technology? How much Boeing technology know-all went to work at China’s Chengdu aircraft plant where they built the J-20 Stealth fighter? Can we now assume Boeing—or at least some of their former scientists and engineers—are no longer as American as apple pie?”
Jon Christian Ryter

http://www.jonchristianryter.com/2011/110122.html

Obama touted the achievement of a Chinese research facility which is in the first stage of a four stage completion process, not slated to be finished until 2019. By that reckoning, the United States remains in fact the “home” to the world’s largest private solar research facility at the present time–NOT China… yet.

“Arizona-based

First Solar announced yesterday plans to construct the world’s largest solar plant in Ordos, China. When completed in 2019, the 2,000 megawatt Ordos solar farm will produce enough power to provide for 3 million homes. It’s a development that makes China, the second largest energy-using country, one of the biggest players in the solar energy game.”

It seems like a new ‘world’s largest solar plant’ or ‘world’s most efficient solar cell’ is being announced every day, but the Ordos solar farm is an especially big deal–the 25 square mile, multi-billion dollar plant makes other solar projects look tiny by comparison. Other major projects in the works, such as First Solar’s 550-megawatt project in

California and the US Army’s 500 megawatt solar thermal project in the Mojave Desert, don’t even come close to matching Ordos.

Still,

renewable energy projects get scrapped or pared down all the time. That means it will be worth keeping an eye on Ordos, which is scheduled to begin the first of its four phases of construction in 2010, to see if it is actually completed. If it is, the country that is now the world’s biggest polluter could easily also become the world’s biggest renewable energy consumer.”

http://inhabitat.com/first-solar-and-china-to-begin-construction-of-worlds-largest-solar-plant/

It will also be worth “keeping an eye on” Obama, who makes fantastic claims which are transparently false.

“So yes, the world has changed. The competition for jobs is real…”
Barack Hussein Obama

Really, “Mr. President;” tell us something we don’t already understand far better than you do! Perhaps you could take a personal interest in the matter, by freeing up the millions of jobs held by the Mexican occupation army, which is illegally infesting our country, when 24 million Americans are out of work!

The hypocrisy of this president knows no bounds.

“The future is ours to win. But to get there, we can’t just stand still. As Robert Kennedy told us, ‘The future is not a gift. It is an achievement.’ Sustaining the American Dream has never been about standing pat. It has required each generation to sacrifice, and struggle, and meet the demands of a new age.”
Barack Hussein Obama

The future is not an “achievement,” it is–like death– an inevitability. Obama’s call for “sacrifice” falls on deaf ears, for the American people are not interested in any further sacrifice of their culture, jobs, country and future by sharing it in shotgun marriage to Mexico, nor seeing their industrial base outsourced to Red China, India, Mexico and other nations, by treasonous corporations, which operate with impunity to the detriment of the national interest.

The American people are unwilling to  sacrifice our national self-determination to the corporate hegemony, which views the future of the American people as providing so much slave labor, to be garnered by vested interests which include the hostile foreign power of Red China (PRC).

Americans will NOT sacrifice on Obama’s corporate altar.  The dummy figurehead has failed to persuade.

“The first step in winning the future is encouraging American innovation.”
BHO

Wrong!  We are already innovators, who need no prompting. The first step in “winning the future,” is reducing the corporate stranglehold over this nation by the dissolution of the Federal Reserve and the forfeiture of all of its ill-gotten assets to the American people.

“None of us can predict with certainty what the next big industry will be, or where the new jobs will come from.”
BHO

Didn’t you just mention the building of the world’s largest solar plant…in China, “Mr. President?”

Doesn’t the return of American factories to our shores presage where new jobs will come from? Why are ostensibly “American” corporations making Red China more powerful?

“In fact, to every young person listening tonight who’s contemplating their career choice: If you want to make a difference in the life of our nation; if you want to make a difference in the life of a child – become a teacher. Your country needs you.”
BHO

To do what; baby-sit a bunch of gang-bangers from Mexico? Talk about a thankless job: “Is this my new reality, Mr. President?”

“As he extols the virtues of ‘innovation’ and ‘accountability,’ the last thing Obama wants you to think about is the actual results of these profligate federal ed binges…”
Michelle Malkin

Realism takes a back seat to idealism on the Obama bus.
Here comes the pitch: “…let’s stop expelling talented, responsible young people who can staff our research labs, start new businesses, and further enrich this nation.”
BHO

The expulsion of new American graduates from the job market, is what happens when America imports foreign nationals to steal American jobs and work for less pay, during the height of the Greatest Depression the world has ever seen. It is what happens when an American student’s place is given to the children of interlopers.

It is also what happens when that “career” at McDonalds, coveted by an American senior citizen, is surrendered to a foreign national who cannot take your order in English and does not wash his hands or clean the restroom.

Here is Obama’s “Mission Accomplished” phase of the SOTU address:

“But now that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in. That is not sustainable. Every day, families sacrifice to live within their means. They deserve a government that does the same.”

Nothing is “over.” Does Obama truly confront any “facts,” including the one that he is NOT qualified to be president under constitutional guidelines and the American people know he is The Great Imposter?

This passage should have read:

“But now that the worldwide global depression is shutting down countries in both hemispheres of the planet, right and left; it is now time to consider what I promised this nation on my inauguration, which is the return of Camelot.
To that end, I promise you my fellow Americans, that I will complete the work of John F. Kennedy’s Executive Order 11110, abolishing the Federal Reserve Bank and thereby fulfilling the mandate of Thomas Jefferson–who called for return of power of the purse to the American people over two hundred years ago.

I will order the Treasury Department to print debt-free money, as a constitutional prerogative for the exercise of national power. This move has the historical precedent set by both presidents Kennedy and Lincoln and is the principal sacred duty of political office, in enforcing the Constitution of the United States of America.

For far too long, we have listened to the dank pessimism of the ‘dust thou art,’ currency counselors of the ‘Federal Reserve,’ who demand ‘independence’ with the citizen’s purse. These feudal lords have turned the greatest experiment in human freedom for the last 234 years into a grist mill for grinding the American taxpayer flat, into dust.

All of that historical injustice is about to end forever. Under my new executive order in support of JFK’s original emancipation for the American people. Usury coming from the Federal Reserve will be abolished, so that economic self-determination may finally be returned to the American people. This is the manifest destiny of free men–as envisioned by the Founding Fathers– unencumbered by having to live in debt slavery or by the leave of a feudal overlord.

By my executive order, the assets of the unlawful Federal Reserve will revert back to their proper owners; the American people. These monies will be expropriated as the first spoils of war against the barons of finance.

Furthermore, I will direct our powerful United States military–in appropriate cases– to go forth and seize all assets which have been stolen from the American people by the international bankers.

This nation will no longer serve as a vassal under subjugation to a central molesting bank.

In short, this nation is ‘under new management’ of, by and for the people.”

Obama should have further given a detailed outline of the threat coming from countries which gouge us in trade and currency matters and combined it with a speech calling for a massive naval build-up, to project American military power in hot spots around the globe, through naval blockade.

One of the reasons our bankrupt nation can continue its profligate spending, is because of our powerful military. That is our “credit card.”

Maybe Obama can explain how a drug pusher of easy credit such as himself, can imagine that “stimulus” programs which deliver a hot-rush heroin injection to a dying republic are salubrious to the national homeostasis? How does the national body prosper on borrowed capital, which is created out of thin air? Is that not akin to dining on one’s own liver for sustenance?

“We have passed the point of no return regarding fiat currency and financial stability. Brilliant individuals like Dr. Edwin Vieira, Peter Schiff, Ron Paul and so many others have warned for decades what would happen if there was no monetary reform. No. The economy isn’t healthy or showing signs of recovery. Such statements by the controlled ‘mainstream’ media and Barack Hussein Obama aka Barry Soetoro aka and so forth, as well as the other toadies who serve their global masters (Bernanke, Geithner, Paulson, etc) are simply lies.”
Devvy Kidd

“And if we truly care about our deficit, we simply cannot afford a permanent extension of the tax cuts for the wealthiest 2% of Americans. Before we take money away from our schools, or scholarships away from our students, we should ask millionaires to give up their tax break.”

BHO

“We should “ask” millionaires” to indulge in guilt to subsidize deadbeats? Does Obama care about the deficit, when he does absolutely nothing to solve it permanently, except legislatively seek to impose divisive Marxist paradigms which contrast the “haves” with the “have-nots?”

“Marxists can always be relied upon to defend the International Bankers, to their dying breath, by portraying capitalism as some sort of vague, accidental ideological abstraction that either everybody or nobody is truly responsible for, rather than as a very specific, profoundly evil system perpetrated by very specific individuals, who are acting with full intention to drain the lifeblood from the Republic until it is dead. This fact alone should be enough to raise suspicion of the Marxists’ real intention, which seems to be to focus primarily on property-based ‘class’ conflict without ever clearly defining the real methods by which the ruling ‘class’ stays in power, so that they can attempt to convince the public that these methods are some kind of magic that only Marxist intellectuals can understand and con them into replacing the existing tyrannical order with a communist tyrannical order. The Marxists are totally anti-democratic and seem to truly envy the money power more than they despise it.”
- [Anonymous]

“But has the debt bomb really been defused?”
Patrick J. Buchanan

Obama completely misses the point that it is not the rich, but our fractional reserve banking system and corporate hijack of our government which has wrapped its tentacles around this republic, to squeeze it into corporate subjugation. He is being penny wise and pound foolish. A perfect useful idiot in the White House.

Conservative columnist John Stossel mentioned ending the war on drugs as part of his own State of the Union platform plank, as it is really a war on the American people.

The legalization and taxation of marijuana would add money to the federal coffers and deprive drug lords and terrorists of their bread and butter. Such monies would free law enforcement to concentrate on border breachers and provide much needed capital for law enforcement agencies, to interdict drugs and weapons coming from our open border with Mexico, which Obama has purposefully allowed to remain porous. The “president” even stated that “We are not defined by our borders…”

One of the greatest austerity measures the government could impose, would be to follow constitutional guidelines which forbid the hard-earned money of the American people from being given away as “foreign aid.” That would be far better than clipping minuscule Social Security payment checks to poor seniors and disabled individuals, who face astronomical food and housing costs on a church mouse budget of cracker crumbs.

America’s poor “retain” their bad teeth, along with their bad governance.

Of course no one in government would ever consider an “austerity measure” which actually has the full sanction of the American people; meaning the end to all foreign aid.

Obama proposes $100 billion U.S. loan for IMF
“The International Monetary Fund doles out money to countries around the globe. Trillions dumped into black holes and the debt is slapped onto you, me, our children and grand children. The U.S. Constitution does NOT authorize a sitting president or CON-gress to simply loot and rob us blind to give money to some private world fund.”

Devvy Kidd

http://www.newswithviews.com/Devvy/kidd441.htm

Obama’s SOTU speech betrays this “Citizen of the World’s” utter lack of vision for the causative factor of our national misfortune, as he strides forward with Don Quixote speeches, to tilt at straw man arguments, based on windmills and solar panels. He cannot fathom the depths of what is required to manage the most powerful country on earth.

Perhaps Donald Trump should have delivered the State of the Union address. This writer is sure that the American people would have noticed the difference between getting down to brass tacks and a campaign pep rally, which is what the SOTU has degenerated into.

The presidency cannot elevate a man from sow’s ear to silk purse.

Obama has failed as a “teacher” of idealistic principles. It is a dog-eat-dog world and dangerous for anyone to suppose otherwise on the doggie playground. Obama does not really care about the deficit, as he is a causative factor in running it up to astronomical heights, while at the same time calling for “austerity” measures…like fewer White House parties and junkets?

“Millions of Americans don’t want their entitlement touched, many of whom are senior citizens. Seniors will tell you that they were forced into Social Security and Medicare, and any congressman talking about cutting those and other entitlements will face their wrath at the ballot box…”
Walter E. Williams

America should now be assuming the leadership role, which points the way for other nations to free themselves from the bondage of usury imposed by the central Rothschild bank.

The great and final twilight struggle of the people vs. the banks has now come to the fore. It is the High Noon showdown between the nation-state concept, pitted against a return to the feudal order under one world government and a one world currency. The outcome will determine whether the nation-state will survive as a viable concept for the people and cultures of the world, or whether they will assume vassalage under feudal money barons, who flood their respective nations with “guest worker” slaves.

Liberty and justice for all nations of the earth hangs in the balance. The American revolutionary model will deliver all of mankind from the clutches of robber barons, while the Marxist revolutionary model will rope mankind back into slave pens.

The struggle of our country to do more than “make ends meet,” signals the dream and imagination of a vibrant people, who can resist the power brokers who own the world behind the scenes.

Yes, we can!

Obama’s answer to our national nightmare, is to impose a guilt complex and austerity measures over the nation, to substitute for his utter failure to address the 800 pound usury gorilla in the room, which robs the American people of the fruit of their labors, turning us into a “banana republic.”

Obama speaks of the future with fond visions, but under his inept administration, the future he has painted will only lead to a shivering, starving grasshopper, standing on the doorstep of Red Chinese army ants, with hand held out as a supplicant, for he celebrates Chinese triumphs, not American ones.

By failing to acknowledge America’s preeminence in solar technology, in favor of boasting–in passing, no less– about China’s “acquisition,” he betrays the same mindset which made him imagine “Muslim achievement in space” was the hallmark of NASA.

Delusions of grandeur for the feeble-minded. Pure SOTU theater, what!

The United States of America, which is wealthy beyond any Croesus, is dreaming dreams of poverty under a fractional reserve banking system, which reduces a deliberate and revolutionary people to the status of serfs in the “New World Order” of the oligarchy.

“One could say of the current United States government that which Winston Churchill once said of the 1930s British government for their inconstancy, when he charged on the floor of the House of Commons: ‘So they go on in strange paradox, decided only to be undecided, resolved to be irresolute, adamant for drift, solid for fluidity, all-powerful to be impotent.’”
Tony Blankley

It is time for the American people to finally awaken from their long somnolence, but State of the Union speeches which collectively put us to sleep, are not the answer.

Thor H. Asgardson

 

WesternFront America

Historically, the Federal Reserve has had a poor record when it comes to correcting an economic slide into Depression.

In his book, “New Deal or Raw Deal?” historian Burton Folsom, Jr, asked and answered the question “What caused the Great Depression?” Among the factors he cited was the huge debt left over from World War One. In the United States, the national debt had ballooned from $1.3 billion to $24 billion in three short years, half of which consisted of loans made to the allies.

Today the U.S. is feeling the impact of the aftermath of 9/11 when military action was taken first in 2001 and then in 2003. We are still in Afghanistan and Iraq without much to show for it. As opposed to short, preemptive, lightning strikes, we have become involved in “nation building.” Forgotten is the fact that it was the Russian intervention in Afghanistan that ultimately brought down the former Soviet Union.

In the 1930s, in addition to tariffs on imported goods, “The third cause of the Great Depression was the poor performance of the Federal Reserve,” concluded Folsom. “The Federal Reserve was created in 1913 to control the money system by regulating interest rates and lending money to banks.”

In an eerie way, Raymond Moley, a member of Franklin D. Roosevelt’s “brain trust” of advisors and an initial advocate of the New Deal, reflects the widespread perception of Barack Obama today. In 1933 Moley broke with FDR and became a conservative. Following a meeting with FDR, Moley recorded his observations.

“I was impressed as never before by the utter lack of logic of the man, the scantiness of his precise knowledge of things that he was talking about, the gross inaccuracies in his statements, by the almost pathological lack of sequence in his statements, by the complete rectitude that he felt as to his own conduct, by the immense and growing egotism that come from his office, by his willingness to continue the excoriation of the press and business in order to get votes for himself, by his indifference to what effort the long continued pursuit of these ends would have upon the civilization in which he was playing a part.”

This description of FDR is, in astonishing ways, a mirror image of Barack Hussein Obama.
The dissatisfaction that Moley expressed has been manifested in the immergence of the Tea Party movement and the rejection of many in Congress who supported Obama’s agenda, including Obamacare, his failed efforts to jump-start the economy with large, temporary stimulus bills, temporary housing rebates and business tax credits, and the one-time cash-for-clunkers program that followed the federal takeover of General Motors and Chrysler.

There are harsh facts being ignored about the present economic crisis. More than 42 million Americans were on food stamps in August, an all-time record and a number that is 17% higher than a year ago. The U.S. is experiencing massive unemployment and the American Bankruptcy Institute predicts there will be an estimated 1.6 million consumer bankruptcies this year.

The U.S. government is completely and totally broke. A Boston University economics professor, Laurence J. Kotlikoff, has concluded that the U.S. government is facing a “fiscal gap” of $202 trillion dollars.

John Allison, who for two decades served as chairman and CEO of BB&T, the nation’s 10th largest bank, told CNSNews.com that it is a “mathematical certainty” the United States government “will go bankrupt unless it dramatically changes its fiscal direction immediately.”

Having tried “quantitative easing” once already the Federal Reserve is undertaking a second effort. It consists of printing magical money and using it to purchase U.S. treasury securities. QE-1 cost $1.7 trillion and did not work. QE-2 will fail as well to the tune of $0.9 trillion.

The U.S. dollar has lost 50% of its purchasing power since 1986 and it has dropped 11% in value since June of this year.

Writing in the November 8 edition of The Wall Street Journal, Kevin M. Warsh, a member of the Federal Reserve’s Board of Governors, went public to warn against QE-2. “Fiscal authorities should resist the temptation to increase government expenditures to compensate for shortfalls of private consumption and investment,” said Warsh who urged “a strict economic diet of fiscal austerity.”

Whether it is Congress or the Federal Reserve, the failures of the present reflect the failures of the past. Major surgery is needed to pare the entitlement programs of Social Security and Medicare. Instead, Obamacare added millions to the Medicare rolls.

The government sponsored entities, Fannie Mae and Freddie Mac, need to be privatized to avoid using billions more in public funds to save them and the too-big-to-fail banks that engaged in “liar’s loans”; mortgage loans that ignored prudent lending practices resulting in the housing market collapse.
TARP did work as an emergency measure, but the government has got to stop being the lender of last resort. It’s our money.

The Federal Reserve is contemplating the creation of “magical money” at a time when the U.S. economy is in deep trouble. It is a trouble that can only be cured by retaining the Bush tax cuts and by simplifying the current insane tax code. Why is there such slow growth? American corporations pay the second highest tax rate in the world.

The burden of federal regulation must be reduced. Economists W. Mark and Nicole Crain, noted in a September Wall Street Journal that “The annual cost of federal regulations increased to more than $1.75 trillion in 2008, a 3% real increase over five years, to about 14% of U.S. national income.”
The President’s original economic advisors have departed. They, like Raymond Moley in the 1930s, know that he is either clueless and/or resistant to any pragmatic solutions.

The midterm elections gave power to the Republicans in the House, the branch from which all financial bills must originate. Failing to do the same in the Senate, it may take two years to repeal Obamacare, but efforts must be taken to defund it, to render it inoperable. The courts may offer relief with a decision that it is unconstitutional.

When the new Congress meets in January 2011, every pressure possible must be brought to bear on the Federal Reserve to stop short-term failed “solutions” before the U.S. dollar is utterly debased.

© Alan Caruba, 2010

 

WesternFront America

Between the time that George Washington took the first oath of office as president and when Barack Obama did—1789 to 2009, the United States had borrowed nine trillion dollars. Since Obama took office, it has borrowed or imposed nearly three trillion more debt. Tell me he is not deliberately seeking to bankrupt the nation.

In an August 28 Wall Street Journal editorial it noted that “To no one’s surprise except Vice President Joe Biden’s, second quarter economic growth was revised down yesterday to 1.6% from the prior estimate of growth of 2.4% which was down from first quarter growth of 3.7%, which was down from the 2009 fourth quarter’s 5%. Economic recoveries are supposed to go in the other direction.”

I was born during the Great Depression of the 1930s and have lived long enough now to find myself in a new one. There are similarities between the two, but the first one led to the creation of a variety of government regulatory entities and programs that should have avoided or at least were expected put the brakes on the current one.

At the heart of the current Depression is the government’s intrusion into the nation’s housing market via Fannie Mae and Freddie Mac, government “entities” that functioned to purchase the mortgages provided by banks and lending companies that, by law, were required to make “sub-prime” bad loans. They have since been seized and billions remain at risk until such time as they are removed from distorting the housing market.

The mortgages were then bundled and resold to banking and investment firms. When the housing “bubble” failed, it threatened the financial structure of the nation. It was a classic asset bubble as people used their homes as piggy banks, taking second mortgages to pay for lifestyles that often did not include saving money for a rainy day. If this sounds like infantile behavior, it is.

Despite the multi-billion dollar bank bailouts initiated in 2008 at the end of the second Bush term and “stimulus” bailouts continued by the Obama administration, the recession has grown longer and there is talk of a “second recession.” This is like saying the family drunk or druggie has a “consumption problem.”

Despite zero interest rates for banks borrowing from the Federal Reserve justifiable fears have slowed lending. Consumers have held off spending. Home sales reached a 15-year low in June.

If the Obama administration and Congress allow the Bush tax cuts to expire, it will deepen the current crisis. In 1932 President Hoover persuaded Congress to raise taxes and we know this led to a decade of a severe economic Depression.

Poor monetary policy drove the Great Depression and is being repeated in this one. Government does not create jobs. Its highest priority is to protect the U.S. dollar so that investment and growth can be maintained.

E. Ralph Hostetter, publisher of American Farm Publications, recently noted that “The federal government has been in control of the U.S. dollar since 1913 when the Federal Reserve Banking System was established.”

“The 130 years prior to 1913, going back to 1783, was the longest period of currency stability in U.S. history. Since the dollar came under control of the Federal Reserve Bank in 1913, it has lost 90 percent of its original value. Eighty percent of that loss has occurred since President Richard Nixon took the United States off the gold standard in 1971.”

As Gerald P. O’Driscall Jr. recently wrote in a Wall Street Journal essay, “The solution lies in restoring balance sheets. For financial firms that means raising capital. For consumers and businesses alike, that means saving more of their reduced incomes.” He warned that “Low interest rates slow the process…by keeping asset prices artificially inflated.” The current Federal Reserve interest rate is zero.

The entire governmental and economic system depends on trust and the Obama administration has squandered that by constantly telling Americans that things were getting better when it was obvious to everyone they were not.

Claims that “shovel ready” projects would turn around the economy were false. Only 3.3% of the $814 billion stimulus was allocated to the Federal Highway Administration for highway and bridge projects. The bulk of the funds expended were directed at retaining civil service jobs of teachers and funds for police and firefighters. Union contracts, fat with pension and health benefits, have bankrupted many States.

In early August first-time claims for unemployment hit a nine-month high. Since the stimulus passed, 2.6 million Americans have lost their jobs and 1.2 million have given up trying to find a new one. Despite the 9.6% figure the government cites, the actual levels of unemployment are far closer to 20%.

During the Great Depression, unemployment was 25% and wages fell 42%.

The nation has reached a point where well-respected economists are now openly using the “Depression” word. David Rosenberg, writing in his daily briefing to investors, warned against interpreting the occasional blips of Gross Domestic Product and stock market gains as signs of recovery. Other economists from major investment and banking institutions are reducing their GDP predictions for 2010 to an anemic range of 1.5% to 2%.

The United States is not in “a summer of recovery” and is not likely to see any recovery if taxes increase. Massive “reform” of Medicare will drive up insurance and healthcare costs. Massive infusions of taxpayer money to keep states afloat to pay for Medicaid and other mandated costs are temporary at best.

Social Security, insolvent because successive Congresses have raped its so-called trust fund, will require a major overhaul to protect those who have paid into it and free new generations from its requirements.

Tax “holidays” are needed to allow businesses and consumers to keep their money instead of handing it over to a profligate federal government and to States that have failed to exercise fiscal sanity.

Get used to the word “Depression.” That’s what we’re in and the first step to get out of it will be to send people to Congress who will address these problems.

Alan Caruba writes a daily post at http://factsnotfantasy.blogspot.com. An author, business and science writer, he is the founder of The National Anxiety Center.

© Alan Caruba, 2010

 

WesternFront America

Will we ever get a response from the Republicans?

Keith Theodore Olbermann

Yes! Where’s the birth certificate?

“We’ve got to be careful about what we say about each other sometimes, because it boxes us in in ways that makes it difficult for us to work together because our constituents start believing us, So just a tone of civility instead of slash-and-burn would be helpful.”

Barack Hussein Obama
Baltimore, MD. Januay 29, 2010.

Obama needs to take his own advice, considering his dismal breach of protocol two nights ago, when he castigated the Supreme Court during his State of the Union Speech .

The Republican Party made a poor showing at the SOTU, with John McCain and his boyfriend, Lindsey Graham, featured center stage and all but holding hands, whispering to each other like two degenerate Roman senators.

Two nights later, it was Storybook Time with Obama in Baltimore, where he entered the lion’s den to play both Daniel and David at the same time, facing off with 140 Republicans, who played sheep to Obama’s wolf, when they should have been piranas.

He resembled the snake oil salesman  “Slick Willie,” as Chris “I forgot he was black” Matthews called him “Clintonesque.”

MSNBC pundit, Chris Matthews, waxed nostalgic about Obama’s “charm, poetry and prose.” It wasn’t like John McCain seeing only KGB, but Comrade Obama made a compelling case for Marxism with his down home affability which beguiles. He is indeed charming; this writer will give him that.

The Republican Party rubes swallowed the Obama presentation, offering only mild protest to the “president.”

“I’m not a pundit, I’m president…” said Obama. “Questions” remain, regarding that assertion.

Rep. Mike Pence got side-tracked, talking of the advocacy of the Kennedy administration for tax cuts, when he should have been asking the hard question regarding Obama’s failure to enforce John F. Kennedy’s Executive Order 11110, abolishing the Federal Reserve. Obama came into office presenting himself as the New Messiah, and heir to Camelot. Where’s the beef, oh Great Mahdi?

Obama claims–in his “all-knowing” arrogance– that the American people want both sides of the aisle to work together, to “get this done.” Nothing could be further from the truth. Americans love the blood-sport of politics, just as much as the liberals like to be smug. They will devour their own kind, if that kind fails to deliver.

The “Party Which Can’t Shoot Straight,” is still facing an identity crisis, as it has completely fractured, leaving only neoconservatives to man the fortress gates.

January 29^th is the night the GOP paraded out all of the green, tender shoots, to stand against the hurricane of one liberal mouse, who roared. Where was the old growth presidential timber, which does not sway in the wind?

The spectacle of failure, provided by the Republican Party in Baltimore was reminiscent of how the Germans enlisted old men, women and children, during the final hours of the Third Reich, for the defense of Berlin.

Why was Rep. Ron Paul not there, or at least someone approaching his exalted stature?

This writer did not recognize any conservative of note beyond Mike Pence at the Baltimore President’s Question Time.

MSNBC pundit Chris “I love to eviscerate an opponent” Matthews, who covered the event, wanted to know “why the Republicans want to shut down the recovery.”

This is the guy who is now advertising over the airwaves how he likes an intellectual challenge, and then proceeds to move in for the kill. What a braggart and boaster!

Well, let me see…could it be that it might be time to do a “comprehensive reform” on our banking system, and forget about reforming Mexican interlopers?

Seven hundred billion dollars of borrowed money was good for a hot-rush heroin injection of a stimulus package, but the government is addicted to the drug of easy credit, and the staggering amount of seven hundred billion dollars was not enough to “get the fix.”

The American people have a different definition of “recovery” and it involves weaning ourselves from the dangerous narcotic of easy credit and entering “rehab” with the creation of a sound monetary system. Too bad there was no lion among the Republican sheep who confronted the “president” in Baltimore. They could have called Obama’s bluff and said: “Indeed let us in a bipartisan manner dissolve the Federal Reserve, before it dissolves our country.” What would have been the response of the alleged “Heir of Camelot, who is also the protégé of Zbigniew Brzezinski , George Soros and David Rockefeller?

The “Party of No,” was too busy being polite to Obama, to articulate a position.

“President’s Question Time” could have introduced the question related to the issue of how the American people can save their country, which has fallen victim to usury.

Obama struck a pose on the world stage as the Black JFK, but he did NOT stand and deliver Camelot to the American people, by dissolving the Fed, as JFK did before he was murdered.

Chris Matthews wondered why the Republican Party was not “saddened” by the unemployment of Americans. There’s an old saying: “Never assume…”

Conservatives must ask the same question, as to why Obama is not saddened, to be giving American jobs to Haitians and Mexican nationals.

Obama introduced his favorite word into the debates, “transparent,” and yet nothing remains transparent about this community organizer from Chicago, except that he refuses– in his arrogance– to surrender to the American people his birth and school records.

There is no paper trail on this man, as he has spent over a million dollars on lawyers to block investigation as to whether he is indeed qualified for the job he sits in.

Small wonder the American people are unhappy with a man who accuses the Republican Party of “setting a tone,” when he has surrounded himself with a mantle of secrecy, and then claims to be “transparent.” Black Americans have a name for this kind of individual: “JAMF.”

The American people do NOT see a “transformational figure,” but instead we find ourselves the recipients of central planning, under a central bank.

Obama said in Baltimore: “We need to make ‘emergency decisions’ about the economy.” Why then does he continue to kite hot checks of funny money from the Federal Reserve?

How does he reconcile fiscal responsibility,  with enslaving the American people to a counterfeiting operation?

“A civilization based on a system of parasitic usury economics will ultimately destroy itself, because fractional-reserve ‘banking’, combined with compound ‘interest’, is truly and totally contrary to the modern ‘Establishment’ economic theory that it represents some kind of perpetual-motion machine. Our economic system was not designed to, nor was it intended to, function honorably for the benefit and general prosperity of all; it was specifically designed to create a nation of debt slaves under the control of a molesting central bank. The perpetrators of the system understand fully that it is finite and must inevitably collapse in a state of insoluble debt, but by that point they expect to have gained full and indisputable control over everything. The 450 richest people in the world have financial assets equal to the combined wealth of the 3 billion poorest; half of all humanity. The only possible explanation for this is that the international economic system has been subverted and corrupted by fully intentional activities, directed towards undermining national governments and creating institutionalized, privately-owned central banks throughout the world.”
- [Anonymous]

Obama claims that Republicans “leave no room to negotiate with me,” and that the GOP perceives his agenda, as some sort of “Bolshevik plot.”

The actions of this administration show that there is legitimate cause for this perception, with the federal takeover of the auto industry, AIG and the bailouts of Fannie and Freddie.

Why doesn’t Obama make the emergency decision to save our country from absorption by the international bankers? Why doesn’t he make an emergency decision to evict the Mexican occupation army from American soil, when that army of squatters  is also draining our economy, while it annexes our country as an act of war?

Remember this is “President’s Question Time!”

This underlying query–far more important than Obama’s citizenship question–remains the single most important issue which occupies the collective mind of the American people.

Chris Matthews of MSNBC said in his analysis of the SOTU, that U.S. Senate minority leader Mitch McConnell was “sitting on his keister,” giggling like a fool. Apparently this was a projection on the part of Matthews, as McConnell brought to the fore a most interesting point in his statement on the State of the Union Speech:

“The administration could also reassure Americans who are still rattled by the attempted Christmas Day bombing by vowing to make a priority of preventing the next terrorist attack, not treating captured terrorists like common criminals so we can place them in a civilian court. Americans have a right to find out everything captured terrorists know in order to prevent future terrorist attacks.”

In answer to Obama: There is “no room to negotiate” when the people do NOT recognize the legitimacy of the Obama administration on personal, domestic and international decisions.

“It can’t be all or nothing,” said Obama, when referring to health care, but the financial health of the nation is at stake, and it is indeed an “all or nothing proposition.”

Obama left out many important points during his SOTU, the most glaring one being Ron Paul’s effort to End the Fed. It is pointless to discuss jobs, budgets and the like, when our government is under the boot of usury. Obama came into office proclaiming the revival of Camelot, but failed to enforce John F. Kennedy’s Executive Order 11110, abolishing the Federal Reserve.  That makes him a poser, with a strong sense of self-entitlement.  He has NOT earned a rapport with the opposing political party, nor the American people.

“After 11 months of health care monomania, he said Wednesday that “jobs must be our No. 1 focus.” Unemployment is 10 percent.” George Will

Speaking of Obama’s statement where he lectures Republicans about “making political assertions that aren’t substantiated and selling the American people a ‘bill of goods:’”

How does Obama answer the question regarding his administration’s Civil Rights Division, which he claims is prosecuting civil rights violations and employment discrimination?

Why has his administration NOT prosecuted the Black Panthers who were caught on tape intimidating voters during the presidential election process?

Rather than prosecuting civil rights violations, the Obama Justice Department is seeking to evade subpoenas from the U.S. Commission on Civil Rights, which is investigating the incident.

“At what point do we have a serious conversation?
Barack Hussein Obama

Over at MSNBC the liberal talking heads want to know why the newly-elected governor of Virginia, Bob McDonnell, with only twelve days on the job, was in charge of the Republican response to the SOTU. The liberals have a point; too many points, in fact.

Is this all the Republican  Party could come up with; green wood, nobody has ever heard of? Why was Ron Paul not enlisted to speak?

Pundits over at MSNBC are lavishly praising what amounts to a mediocre State of the Union address, delivered by the Usurper-in-Chief.

The  political pablum of the Obama address, is already being hailed as a major milestone in State of the Union speeches at MSNBC where there is talk of firing up the jackhammers on Mount Rushmore, to further the apotheosis of Barack Hussein Obama.

“Will the Republicans take the dare of going against the banks?” Keith Theodore Olbermann asked in his SOTU analysis.

“Our most urgent task upon taking office was to shore up the same banks that helped cause this crisis. It was not easy to do. And if there’s one thing that has unified Democrats and Republicans, it’s that we all hated the bank bailout. I hated it. You hated it. It was about as popular as a root canal.”
Barack Hussein Obama

If Obama “hated it” so much, why did he borrow a trillion dollars to bailout an obvious Ponzi scheme? This is leadership?

This passage should have read: “Our most urgent task upon taking office, was to fulfill the mandate laid down by George Washington, Thomas Jefferson, Andrew Jackson , Abraham Lincoln and John F. Kennedy to return control of the nation’s purse strings to the American people.

This struggle of our founding fathers for debt-free money, was the cause of the Revolutionary war, and once again we find our republic under full frontal assault from the international bankers.

I promised this nation the return of Camelot, upon my inauguration, and I fully intend to keep that promise, by immediately putting John F. Kennedy’s Executive Order 11110– abolishing the Federal Reserve– into full force.

I will end the Federal Reserve, before it ends this republic.”

Where is Lloyd Bentsen, when we need him to tell Obama that he is NOT Jack Kennedy?

Rep. Ron Paul actually introduced a bill for a total audit of the Federal Reserve quite some time ago. Rep. Paul’s solution to the economic problems of this country, is the only one worthy of consideration, for it falls into alignment with presidents Lincoln and Kennedy, who were murdered for trying to free the American people from the yoke of serfdom under usury.

MSNBC anchor, Keith Olbermann, accuses Republicans of “reading too many of your own blogs.” Perhaps we should read their blogs?

When Republicans played the President’s Storybook Time game, they were accused of being “freebooters, taking shots at the president,” by MSNBC news anchor, Chris Matthews.

The assessment by Matthews, aligns with  Obama’s definition of “No room to negotiate.”

The home team got mauled on their own playground, by a featherweight.

Keith Olbermann compared Obama’s Baltimore coup to the historic pugilist, John L. Sullivan, offering to beat up everyone in the room.

Obama tells us there is a cost for healthcare. Does that cost include the deportation of illegal aliens, who have bankrupted our hospitals?

Our ship of state has been torpedoed by the central bankers on the high seas of international finance and all this republic can do, is tread water in shark-infested seas, in the hope that our bid for rescue by solvency–in borrowing another trillion dollars– will cloak us like a protecting oil slick against the  corporate carcharodon.

The key to realizing the state of our Union, is in understanding the vulnerability of the dollar in the global currency markets. The Obama administration may be able to fool the American people for a time, with “hope” pep talks, and fireside chats, but the ultimate reality is that gullible Americans are NOT the sophisticated foreign investors who are currently propping up this republic. These foreign investors are getting ready to pull the plug on the hopeless deadbeat this country has become.

The stability of our economy, is now subject to around-the-clock electronic financial transactions, which could lead to Obama’s “stability” being wiped out at the speed of light on a computer screen.

The task of paramount importance for the American people, is to take control of their financial destiny–and republic– by ending the Fed.

This issue was NOT discussed by the solons and august personalities, during President’s Question Time.

Usury acts like heroin in the veins of the national body, and our elected representatives are addicted to kiting hot checks, to get a stimulus rush, leading to the twilight realm.

I will close my analysis of Obama’s three day binge over the airwaves, with a message from our real president:

“But if rejection of Bernanke would cause turmoil in U.S. and world markets, what does that say about the real stability of the system? And is it not time we stopped treating the Fed as a holy of holies?

In 1913, when the Fed was created with the duty of preserving the dollar, one 20-dollar bill could buy one 20-dollar gold piece. Fifty 20-dollar bills are needed today to buy one 20-dollar gold piece. Under the Fed’s custody, the U.S. dollar has lost 98 percent of its value.

Against the euro, in the George W. Bush decade, the dollar lost close to half its value.

The dollar is the storehouse of our wealth. Has the Fed faithfully safeguarded that storehouse? Was it not Thomas Jefferson who taught us, “In questions of power let us hear no more of trust in men, but bind them down from mischief with the chains of the Constitution”?

Every monetary crisis is a result of Fed action or inaction, for the Fed controls the money supply. As Milton Friedman wrote in the book that won him a Nobel, the Fed’s easy money fueled the market bubble that burst in 1929. In our time, the Fed fueled the dot-com bubble, the stock market bubble and the housing bubble. Bubbles appear when money is created faster than the supply of goods that money buys.

This populist uprising is a product of rage and revulsion at the Washington and Wall Street elites, the unindicted co-conspirators who created this crisis, neither of which has paid a price commensurate with what they did to the country.

Let this rebellion not end until all receive their just desserts, and we get real “change we can believe in.”
Patrick J. Buchanan

Keith Olbermann gloated over the ineptness of the Republican response in Baltimore, by projecting that Republicans will now be too intimidated to deal with a president who can ad lib it without a teleprompter, when he said: “Republicans will say: ‘We have to avoid him as much as possible.’”

“You’re always learning from your enemies”
Chris Matthews

Walk away, Republicans, then come back and take Troy!

© Thor H. Asgardson

 

WesternFront America

Like him or not, I think Alex Jones’ views should at least be considered. There have been to many incindents over this past year that have been used to take power away from the people and force it into the hands of a government or possibly a shadow government. I think if we aren’t open to the idea that something sinister like a new world order exists, they we are looking away at a possible enemy and will be less prepared.

I say this with caution even though, like Dick Morris says in the video, I have seen enough evidence that I am no longer sure I want to discount the possiblity that Obama is a puppet, chosen because of his race to give Americans the feeling they have elected someone who is different to give them the false sense of home, only to have someone who will protect their interests, which is what we are seeing as Obama makes deals with Wall Street.

Yesterday, I posted a video of Timothy Geithner saying that Ron Paul’s bill, HR1207, to audit the Federal Reserve crosses a line we shouldn’t cross. The Federal Reserve has been a huge source of controversy often rooted in the idea of the New World Order, and some people believe John F. Kennedy’s death was the result of an exectuive order Kennedy signed on June 4, 1963. Executive Order No. 11110 would have taken the power to issue currency from the Federal Reserve and give it back to the Congress. Five months later, Kennedy was dead.

In case you don’t know, the Federal Reserve is ran by a group of very powerful bankers who issue currency to the federal government in loans and make profits from the interest form their lending. That’s right, the US Government pays interest on the money. If you think Madoff is evil, he doesn’t even come close as those involved with the scheme that is the Federal Reserve.

Prior to this year, New World Order was something I heard from George H.W. Bush’s mouth that made me uncomfortable, but I wasn’t sure why. Since the rundown of over $500 billion on September 11, 2008 that Democratic Congressman Paul Kanjorski, I have paid more attention at the ugly side of the government and possibly the influence of the New World Order.

Since then, many of the things I heard Alex Jones warn of while he made guest appearances on the Mancow show started to seem not so crazy. When you consider there is legislation in the House of Representatives to establish FEMA camps, take more control of the food production, the swine flu fear almost as if they have it planned, the ordering of large amounts of plastic coffins, forced community service and a national day of service which is more brainwashing the idea of state to the sheeple (as if your taxes aren’t enough service), the militia reports, government sponsored violence through the SEIU with marching orders directly from Obama all designed to define who opposes and create more division, the further movement towards stealing our First and Second Amendment rights, TARP money provided not just to American banks but international banks as well, and I could go on. There is clearly a force in Washington that is dangerous to freedom, our Constitution, and our country.

Detention Centers Bill HR645

Think what you want. Snub the idea of the New World Order. It’s hard to make sense out of this crazy world and all these strange coincidences if you fail to consider drawing the connection. Let’s not forget Obama and Hillary were at Bilderberg 2008. Bilderberg, the ultra secret meetings of a group of the world’s most elite power brokers. At one time, I thought all of this was far fetched and laughed at the idea when my own father brought it up. Now I am afraid he was wise and watched it develop many years before. I hope we are both wrong, but I am afraid I am not.

© Clay Bowler

Originally posted at Bungalow Bill’s Conservative Wisdom

 

WesternFront America