The Federal Reserve Bank Is The Reason For America's Downfall

Wednesday, 24 December 2008
The Federal Reserve Bank Is The Reason For America's Downfall

'The American Revolution was an extraordinary event. The idea that freedom was an inherent right, that tyranny could be successfully opposed, that government could serve the people, not the few, was truly revolutionary in 1776--as it is today.
The American Revolution, however, has run its course; and unless resuscitated and given new life, the American dream and the dreams of America's founding fathers will soon be only a memory. Dreams rarely come to pass and those that do rarely last. The American dream is no exception.'

The Federal Reserve Bank is the Reason for America's Downfall :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website (external - login to view)
There's some truth here. The Federal Reserve is constituted differently than other National Currency Issuing Banks, in its independance from government scrutiny and supervision, and with the secrecy with which it conducts its business. In most ways it does operate as the Central Bank of the U.S.

It would be more accurate to state that the entire Global Monetarist Financial Trading System is bankrupt. Monetarism is essentially Free Trade in Currency and, along with Free Trade in Commodities, it has destroyed the American Industrial and Financial Systems.. and that of the world.

The Gold Standard is essentially a form of imposing stability in the currency exchange rates of the world, as once enforced by the Bretton Woods Agreement which was dismantled in the early 1970s. It will have to be reestablished if the current economic collapse is to be stemmed but it need not be based on gold.

We will also have to abrogate all Free Trade agreements, and reinstitute the sovereingty of the nation state in tariffs, in asserting its sovereign and proprietary right to issue currency through its own auspices, in establishing available and affordable credit, in national industrial plannning... all this, to stem this economic catastrophe, which will not abate until its instigating policies are repealed.

Where this opinion errs is in blaming 'government' for the problems. Government isn't the problem.. bad government is. What we have seen in the last 30 years is the elimination of government from THE key planning and supervisory role in asserting moral and national imperatives through market oversight, issuance of currency, control of lending, industrial planning and investment, and, ensuring equitable distribution of wealth. In that way this view point reflects the deep seated American distrust of all government. In part that libertarian attitude was responsible for this fiasco in the first place.

We are now being governed by a Global Investment Organism, utterly amoral, greed infested, irrational.. like a drug addict hooked on high voltage short term profit fixes. It is impoverishing the world, and it will lead to social breakdown, revolutions and wars.. if it not replaced.. with something that has worked in the past.
Last edited by coldstream; Dec 26th, 2008 at 11:26 AM..
In the 1920s, Josiah Stamp, Bank of England president said:

"Banking was conceived in iniquity and was born in sin. Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with a flick of the pen (today a computer keyboard) they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits."
If we look at history, then it looks like the Fed is consolidating its power. In 29 J.P. Morgan started a rumour that the banks were insolvent, thus causing the Great Depression. He bought out a lot of the small banks for next to nothing. He didn't care how many people suffered or died because of his actions, as long as he made a crap load of money.
The Fed has caused this latest meltdown so it can get rid of the cash scam and institute the embedded debit chip. Then they will have absolute control over the economy. Every transaction will be done electronically and cash will be worthless. This is the final step in economic slavery and people will be willing to be chipped because they will not be able to function without it... unless we start bartering and cut out the middle man.
Coldstream, I don't know who you are, but I hope you are running for office. You got my vote. The gold standard, I agree. Or something else? Obviously not the oil standard.

How about the potato standard? Makes sense to me, these days. Do you have any ideas for a better standard than gold? I'm still for the gold standard. It worked for so many years. These are different times.....but what else would work? I am totally opposed to the idea of The air money standard.

Where do we go?


I've seen proposals for a basket of commodities or primary industrial inputs.. but essentially the Gold Standard was only a tool to establish long term and predictable exchange rates between currencies, essential for a constructive investment environment.

You really don't need any hard commodity to establish that. You could simply set an arbitrary international standard of one 'inter' lets call it, of which only one note will be issued as the standard.. and around which all currencies would be valued.

It would certainly be possible for countries to devalue or revalue their currencies, as a rationally thought out policy.. but it would likely immediately force all bilateral trade agreements into renegotiation (the only fair and rational way to organize international trade), which would be a powerful disincentive not to invoke that privilege.

A nation with a sound industrial policy and financial infrastructure would have many options to stimulate the economy, control inflation.. before it had recourse to that.

It sounds cumbersome, but it is essentially what we had in the Post War period, with the greatest economic expansion in history through 1945 - 1970.. before the jaws of the neo-liberal paradigm started to bite.

Once a fixed currency is established a nation will not forced into the counterproductive necessity of adjusting its interests rates to manage the value of its currency. That instrument should be used exclusively to stimulate the economy and control inflation. Right now currency exchange rates are established in the privately held international casino of currency bourses.

They exist soley to make a profit, not for the welfare of the nation state or its citizens. Physical trade now accounts for only a fraction of this trading, much less than 5%, the rest is pure speculation. The currency derivatives market dwarfs that of the mortgage derivatives (maybe by a hundred fold, nobody knows for sure, there is no transparent reporting system), if.. really when, that collapses it will wash away the world financial system. We are only at the start of the potential peril..catastrophe ..the 'Free Market' trading system has put us in.

As i stated, our salvation from this mess is available to us from proven policies in our past.
Last edited by coldstream; Dec 26th, 2008 at 06:51 PM..
Scott Free
The USA had a good run of it. They stole a brand new unmolested continent and rapped the hell out of it. Did they really think the party could last forever?

What I find amusing is that so many Americans think their wealth had something to do with them. That this huge fresh virginal continent played only a small role in their success. We can now see that it actually meant everything to their success. That their ideas and ideologies are no better than anyone else in the light of real world circumstance. That Americans are no different than anyone else now that their land of plenty has been squandered.

I find it very humorous.

What destroyed America?

Nothing. It was inevitable.
I've been following the exchange rates for a while. Long term and predictable sounds like good terms to me. But I understand what you are saying. So, should we all convert to the Euro? Do you think we're really ready for that? And what is the Euro based on? My guess is, more hot air.

We all exist to make a profit, or at least to survive. And that takes money, honey.

These are hard times. We need smart thinkers.

I hope you stay here, at CC, you seem to have wise words. As does Talloola, about family. Did you read that post? I'm thinking family is the answer these days. And if they grow potatoes, so much the better.
Any currency is indeed only as strong as the economy that backs it.. but that is more than 'hot air'. It essentially forms a guarantee of stored value to both domestic and international holders. If economies collapse, as they are now, then the currency provides absolutely no guarantees of value, beyond the paper it is printed on.

You could set the value of this hypothetical 'inter' half way between the American Dollar and the Euro to start so as to not put anyone's nose out of joint.. its an arbitrary standard.

I didn't see Talloola''s post, but i've put in all my posts the subtext of a 'moral' system as the foundation of any viable economy.In fact all economies are moral systems. Any society that has lost its moral bearings will have lost its economic ones as well, and all social systems always start with the family at its core.

The greed and selfishness that characterises our economic system is founded in a value system that has gained precedence in our society in general.

In the 1840's a French traveller and social observer, Alexis de Tocqueville, in his 'Travels in America' was enthralled by the egalitarian and entrepreneurial spirit of the young nation, compared to the jaded European aristocracies he had come from. He observed that "America is great because she is good. If America ceases to be good, she will cease to be great"

Going back to the subject of the topic, it appears that watershed is upon us.
Last edited by coldstream; Dec 26th, 2008 at 08:15 PM..
FRB was founded because of the intense lobbying work of Republican banker Nelson Aldrich who also established the income tax.
The Federal Reserve System is actually the third U.S. Central Bank. The Bank of the United States was established by Alexander Hamilton, the first Treasury Secretary to stabilize the currency and as a depository for government receipts and disbursements. It had a 20 year Charter which was not renewed.

The 2nd Bank of the United States was formed by James Madison, for the same reasons as Hamilton in 1816 and was dismantled by Andrew Jackson, supposedly for corruption and enriching its officers. There was however more deeply rooted reasons, that of the inherent suspicion of agricultural and rural interests, and those of the South, to any centralized government power, and specifically over that of money.

So for long periods the U.S. central banking was in the hands of private banks, which these rural interests considered superior to that of government. It was only when the emerging industrial sector gained ascendancy the Federal Reserve System was established in 1913 to manage the increasingly complex structures of commerce, currency and credit.

The difference from it and its predecessors was that to make it politically palatable, government oversight and supervision were strictly limited, and no allowance was made for transparency in its decision making and public accountability.

It is no suprise to me that, now, with American industry in virtual collapse due to Free Trade, the old puritan, libertarian default mode in the American consciousness has reassserted itself, and the type of fear and rumour mongering you see in this article has reappeared as the economic crisis deepens.

The truth is modern nation states need Central Banks, as they need progressive income taxes and tariffs. The tragedy in our current predicament is that both central banks, and the current regime of regressive taxation are now used to support an economic paradigm which rewards greed and speculation.

Neo-liberalism (essentially it is Classic 18th Century British Liberalism of Adam Smith and David Ricardo) is what rules the world now, and it is in a profound state of collapse as it supports an ever diminishing, and grotesquely rich elite at the expense of the wider community.
The Shadow Money Lenders: The Real Significance of The Fed’s Zero-Interest-Rate Policy (ZIRP)
The Battle To Save The Fiat Money System Has Begun

by Matthias Chang

Global Research (external - login to view), December 26, 2008 (external - login to view)

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Global Central Banks Acting In Concert - Disinformation In Financial Dailies To Confuse The People When The Truth Dawns On Hapless People, There Will Be Blood On The Streets. This Is The Warning By IMF!

The disinformation by the global financial dailies in the last twelve months as to the cause of the global financial tsunami, serve the same purpose as the global mass media when they perpetuated the lies that lulled the people to support the war criminals Bush, Blair and Howard to launch the barbaric war against Iraq and Afghanistan which resulted in the genocide of millions, the mutilation of hundreds of thousands, physically and psychologically, and the devastation of an entire nation.
The wars unleashed thus far, specifically the “War on Terror” was launched to preserve the shadow money-lenders’ political and military power.
This War on Terror is the greatest military sideshow that distracted the great American people from the financial rape and plunder of their economy and the destruction of their Constitution.
Since the summer of 2007, we have witnessed a concerted effort by the world’s central banks and global commercial and investment banks to preserve the shadow money-lenders’ financial power, one that is founded on fraud and structured in every detail as in the infamous Ponzi scheme.
In the last seven years, the Ponzi scheme was globalised by the Shadow Money-Lenders, siphoning hundreds of billions from so-called sophisticated investors and sovereign wealth funds. At its peak, the Ponzi scheme was estimated to be worth over $500 Trillion, with the Credit Default Swap (CDS) portion just under $60 Trillion!
Hidden behind the headlines of the financial destruction that is sweeping across the globe, lies another story – a dark tale of men who orchestrated the crisis and have amassed enormous wealth and power at the expense of the millions who are now unemployed and whose homes have been foreclosed. This select group of men is in absolute control of the unfolding events. Who are they?
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