Sunday, August 23, 2009
"They make a desolation and call it peace."-Tacitus
Was Alan Greenspan really as dumb as he looks in creating the late housing
bubble that threatens to bring the entire Western debt-based economy crashing
Was something as easy to foresee as this really the trigger for a meltdown that
could destroy the world’s financial system? Or was it done, perhaps,
"accidentally on purpose"?
And if so, why?
Let’s turn to the U.S. personage that conspiracy theorists most often mention as
being at the epicenter of whatever elite plan is reputed to exist. This would be
David Rockefeller, the 92-year-old multibillionaire godfather of the world’s
The lengthy Wikipedia article on Rockefeller provides the following version of a
celebrated statement he allegedly made in an opening speech at the Bilderberg
conference in Baden-Baden, Germany, in June 1991:
"We are grateful to the Washington Post, the New York Times, Time magazine, and
other great publications whose directors have attended our meetings and
respected their promises of discretion for almost forty years. It would have
been impossible for us to develop our plan for the world if we had been subject
to the bright lights of publicity during these years. But the world is now more
sophisticated and prepared to march towards a world government which will never
again know war, but only peace and prosperity for the whole of humanity.
supranational sovereignty of an intellectual elite and world bankers is surely
preferable to the national auto-determination practiced in the past centuries."
This speech was made 17 years ago. It came at the beginning in the U.S. of the
Bill Clinton administration. Rockefeller speaks of an "us." This "us," he says,
has been having meetings for almost 40 years. If you add the 17 years since he
gave the speech it was 57 years ago—two full generations.
Not only has "us" developed a "plan for the world," but the attempt to "develop"
the plan has evidently been successful, at least in Rockefeller’s mind. The
ultimate goal of "us" is to create "the supranational sovereignty of an
intellectual elite and world bankers." This will lead, he says, toward a "world
government which will never again know war."
Just as an intellectual exercise, let’s assume that David Rockefeller is as
important and powerful a person as he seems to think he is. Let’s give the man
some credit and assume that he and "us" have in fact succeeded to a degree. This
would mean that the major decisions and events since Rockefeller gave the speech
in 1991 have probably also been part of the plan or that they have at least
represented its features and intent.
David Rockefeller at Harvard in 2006
Therefore by examining these decisions and events we can determine whether in
fact Rockefeller is being truthful in his assessment that the Utopia he has in
mind is on its way or has at least come closer to being realized. In no
particular order, some of these decisions and events are as follows:
The implementation of the North American Free Trade Agreement by the Bill
Clinton and George W. Bush administrations has led to the elimination of
millions of U.S. manufacturing jobs as well as the destruction of U.S. family
farming in favor of global agribusiness. Similar free trade agreements,
including those under the auspices of the World Trade Organization, have led to
export of millions of additional manufacturing jobs to China and elsewhere.
Average family income in the U.S. has steadily eroded while the share of the
nation’s wealth held by the richest income brackets has soared.
Some Wall Street
hedge fund managers are making $1 billion a year while the number of homeless,
including war veterans, pushes a million. The housing bubble has led to a huge
inflation of real estate prices in the U.S. Millions of homes are falling into
the hands of the bankers through foreclosure. The cost of land and rentals has
further decimated family agriculture as well as small business. Rising property
taxes based on inflated land assessments have forced millions of lower-and
middle-income people and elderly out of their homes.
The fact that bankers now control national monetary systems in their entirety,
under laws where money is introduced only through lending at interest, has
resulted in a massive debt pyramid that is teetering on collapse.
"monetarist" system was pioneered by Rockefeller-family funded economists at the
University of Chicago. The rub is that when the pyramid comes down and everyone
goes bankrupt the banks which have been creating money "out of thin air" will
then be able to seize valuable assets for pennies on the dollar, as J.P. Morgan
Chase is preparing to do with the businesses owned by Carlyle Capital.
Meaningful regulation of the financial industry has been abandoned by
government, and any politician that stands in the way, such as Eliot Spitzer, is
The total tax burden on Americans from federal, state, and local governments now
exceeds forty percent of income and is rising. Today, with a recession starting,
the Democratic-controlled Congress, while supporting the minuscule "stimulus"
rebate, is hypocritically raising taxes further, even for middle-income earners.
Back taxes, along with student loans, can no longer be eliminated by bankruptcy
Gasoline prices are soaring even as companies like Exxon-Mobil are recording
record profits. Other commodity prices are going up steadily, including food
prices, with some countries starting to experience near-famine conditions. 40
million people in America are officially classified as "food insecure."
Corporate control of water and mineral resources has removed much of what is
available from the public commons, and the deregulation of energy production has
led to huge increases in the costs of electricity in many areas.
The destruction of family farming in the U.S. by NAFTA (along with family
farming in Mexico and Canada) has been mirrored by policies toward other nations
on the part of the International Monetary Fund and World Bank. Around the world,
due to pressure from the "Washington consensus," local food self-sufficiency has
been replaced by raising of crops primarily for export. Migration off the land
has fed the population of huge slums around the cities of underdeveloped
Since the 1980s the U.S. has been fighting wars throughout the world either
directly or by proxy. The former Yugoslavia was dismembered by NATO. Under cover
of 9/11 and by utilizing off-the-shelf plans, the U.S. is now engaged in the
military conquest and permanent military occupation of the Middle East. A
worldwide encirclement of Russia and China by U.S. and NATO forces is underway,
and a new push to militarize space has begun. The Western powers are clearly
preparing for at least the possibility of another world war.
The expansion of the U.S. military empire abroad is mirrored by the creation of
a totalitarian system of surveillance at home, whereby the activities of private
citizens are spied upon and tracked by technology and systems which have been
put into place under the heading of the "War on Terror." Human microchip
implants for tracking purposes are starting to be used. The military-industrial
complex has become the nation’s largest and most successful industry with tens
of thousands of planners engaged in devising new and better ways, both overt and
covert, to destroy both foreign and domestic "enemies."
Meanwhile, the U.S. has the largest prison population of any country on earth.
Plus everyday life for millions of people is a crushing burden of government,
insurance, and financial fees, charges, and paperwork. And the simplest business
transactions are burdened by rake-offs for legions of accountants, lawyers,
bureaucrats, brokers, speculators, and middlemen.
Finally, the deteriorating conditions of everyday life have given rise to an
extraordinary level of stress-related disease, as well as epidemic alcohol and
drug addiction. Governments themselves around the world engage in drug
trafficking. Instead of working to lower stress levels, public policy is skewed
in favor of an enormous prescription drug industry that grows rich off the
declining level of health through treatment of symptoms rather than causes. Many
of these heavily-advertised medications themselves have devastating
This list should at least give us enough to go on in order to ask a hard
question. Assuming again that all these things are parts of the elitist plan
which Mr. Rockefeller boasts to have been developing, isn’t it a little strange
that the means which have been selected to achieve "peace and prosperity for the
whole of humanity" involve so much violence, deception, oppression,
exploitation, graft, and theft?
In fact it looks to me as though "our plan for the world" is one that is based
on genocide, world war, police control of populations, and seizure of the
world’s resources by the financial elite and their puppet politicians and
In particular, could there be a better way to accomplish all this than what
appears to be a concentrated plan to remove from people everywhere in the world
the ability to raise their own food? After all, genocide by starvation may be
slow, but it is very effective. Especially when it can be blamed on "market
And can it be that the "us" which is doing all these things, including the great
David Rockefeller himself, are just criminals who have somehow taken over the
seats of power? If so, they are criminals who have done everything they can to
watch their backs and cover their tracks, including a chokehold over the
educational system and the monopolistic mainstream media.
One thing is certain: The voters of America have never knowingly agreed to any
Wednesday, August 19, 2009
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration.
First of all, the 16th amendment goes against what our founding fathers where trying to get away from when they
conquered this continent and constructed the Constitution. The Government had NO power to impose a direct tax its citizens, and yet that is exactly what they are doing to us now. Some may argue that your wages and earnings are "income" and is not a direct tax, but rather an indirect tax, but they know this is not true, because if it was, then the 16th amendment would not have the wording that it does.
Even if income taxes are considered direct taxes, the 16th amendment removes any apportionment requirement that would otherwise be required if income taxes were direct.
What they fail to tell you is that the word "Income" is not defined as your
wages (which is your private property), but rather "Income" is defined through
the supreme court as a result of economic activity that results in a profit. People are misinformed when it comes to the Federal Income Tax because they say..."Well, how will the Government pay for its programs and provide essential services...?" when meanwhile the Federal Income Tax revenue doesn't even get spent on any of these "programs" or "services". Rather, it is earmarked to pay back the Federal Reserve.
How did they Government fund itself for almost 200 years
before the Federal Income Tax? The way it was meant too, by taxing the
profit of Corporations.
You pay plenty of taxes that provide you with your
essential government services... including but not limited to... property tax,
gasoline tax, sales tax, toll tax, excise tax, telephone tax, vehicle license
registration tax, liquor tax, utility tax.... and the list keeps going.
You can go to YouTube.com and watch the rest of this eye opening documentary.
Tuesday, August 18, 2009
"Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders."
– The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s
The Federal Reserve (or Fed) has assumed sweeping new powers in the last year. In an unprecedented move in March 2008, the New York Fed advanced the funds for JPMorgan Chase Bank to buy investment bank Bear Stearns for pennies on the dollar. The deal was particularly controversial because Jamie Dimon, CEO of JPMorgan, sits on the board of the New York Fed and participated in the secret weekend negotiations.1 In September 2008, the Federal Reserve did something even more unprecedented, when it bought the world’s largest insurance company. The Fed announced on September 16 that it was giving an $85 billion loan to American International Group (AIG) for a nearly 80% stake in the mega-insurer. The Associated Press called it a "government takeover," but this was no ordinary nationalization. Unlike the U.S. Treasury, which took over Fannie Mae and Freddie Mac the week before, the Fed is not a government-owned agency. Also unprecedented was the way the deal was funded. The Associated Press reported:
"The Treasury Department, for the first time in its history, said it would begin selling bonds for the Federal Reserve in an effort to help the central bank deal with its unprecedented borrowing needs."2
This is extraordinary. Why is the Treasury issuing U.S. government bonds (or debt) to fund the Fed, which is itself supposedly "the lender of last resort" created to fund the banks and the federal government? Yahoo Finance reported on September 17:
"The Treasury is setting up a temporary financing program at the Fed’s request. The program will auction Treasury bills to raise cash for the Fed’s use. The initiative aims to help the Fed manage its balance sheet following its efforts to enhance its liquidity facilities over the previous few quarters."
Normally, the Fed swaps green pieces of paper called Federal Reserve Notes for pink pieces of paper called U.S. bonds (the federal government’s I.O.U.s), in order to provide Congress with the dollars it cannot raise through taxes. Now, it seems, the government is issuing bonds, not for its own use, but for the use of the Fed! Perhaps the plan is to swap them with the banks’ dodgy derivatives collateral directly, without actually putting them up for sale to outside buyers. According to Wikipedia (which translates Fedspeak into somewhat clearer terms than the Fed’s own website):
"The Term Securities Lending Facility is a 28-day facility that will offer Treasury general collateral to the Federal Reserve Bank of New York’s primary dealers in exchange for other program-eligible collateral. It is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally. . . . The resource allows dealers to switch debt that is less liquid for U.S. government securities that are easily tradable."
"To switch debt that is less liquid for U.S. government securities that are easily tradable" means that the government gets the banks’ toxic derivative debt, and the banks get the government’s triple-A securities. Unlike the risky derivative debt, federal securities are considered "risk-free" for purposes of determining capital requirements, allowing the banks to improve their capital position so they can make new loans. (See E. Brown, "Bailout Bedlam," webofdebt.com/articles, October 2, 2008.)
In its latest power play, on October 3, 2008, the Fed acquired the ability to pay interest to its member banks on the reserves the banks maintain at the Fed. Reuters reported on October 3:
"The U.S. Federal Reserve gained a key tactical tool from the $700 billion financial rescue package signed into law on Friday that will help it channel funds into parched credit markets. Tucked into the 451-page bill is a provision that lets the Fed pay interest on the reserves banks are required to hold at the central bank."3
If the Fed’s money comes ultimately from the taxpayers, that means we the taxpayers are paying interest to the banks on the banks’ own reserves – reserves maintained for their own private profit. These increasingly controversial encroachments on the public purse warrant a closer look at the central banking scheme itself. Who owns the Federal Reserve, who actually controls it, where does it get its money, and whose interests is it serving?
Not Private and Not for Profit?
The Fed’s website insists that it is not a private corporation, is not operated for profit, and is not funded by Congress. But is that true? The Federal Reserve was set up in 1913 as a "lender of last resort" to backstop bank runs, following a particularly bad bank panic in 1907. The Fed’s mandate was then and continues to be to keep the private banking system intact; and that means keeping intact the system’s most valuable asset, a monopoly on creating the national money supply. Except for coins, every dollar in circulation is now created privately as a debt to the Federal Reserve or the banking system it heads.4 The Fed’s website attempts to gloss over its role as chief defender and protector of this private banking club, but let’s take a closer look. The website states:
* "The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations – possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year."
* "[The Federal Reserve] is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms."
* "The Federal Reserve’s income is derived primarily from the interest on U.S. government securities that it has acquired through open market operations. . . . After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury."5
So let’s review:
1. The Fed is privately owned.
Its shareholders are private banks. In fact, 100% of its shareholders are private banks. None of its stock is owned by the government.
2. The fact that the Fed does not get "appropriations" from Congress basically means that it gets its money from Congress without congressional approval, by engaging in "open market operations."
Here is how it works: When the government is short of funds, the Treasury issues bonds and delivers them to bond dealers, which auction them off. When the Fed wants to "expand the money supply" (create money), it steps in and buys bonds from these dealers with newly-issued dollars acquired by the Fed for the cost of writing them into an account on a computer screen. These maneuvers are called "open market operations" because the Fed buys the bonds on the "open market" from the bond dealers. The bonds then become the "reserves" that the banking establishment uses to back its loans. In another bit of sleight of hand known as "fractional reserve" lending, the same reserves are lent many times over, further expanding the money supply, generating interest for the banks with each loan. It was this money-creating process that prompted Wright Patman, Chairman of the House Banking and Currency Committee in the 1960s, to call the Federal Reserve "a total money-making machine." He wrote:
"When the Federal Reserve writes a check for a government bond it does exactly what any bank does, it creates money, it created money purely and simply by writing a check."
3. The Fed generates profits for its shareholders.
The interest on bonds acquired with its newly-issued Federal Reserve Notes pays the Fed’s operating expenses plus a guaranteed 6% return to its banker shareholders. A mere 6% a year may not be considered a profit in the world of Wall Street high finance, but most businesses that manage to cover all their expenses and give their shareholders a guaranteed 6% return are considered "for profit" corporations.
In addition to this guaranteed 6%, the banks will now be getting interest from the taxpayers on their "reserves." The basic reserve requirement set by the Federal Reserve is 10%. The website of the Federal Reserve Bank of New York explains that as money is redeposited and relent throughout the banking system, this 10% held in "reserve" can be fanned into ten times that sum in loans; that is, $10,000 in reserves becomes $100,000 in loans. Federal Reserve Statistical Release H.8 puts the total "loans and leases in bank credit" as of September 24, 2008 at $7,049 billion. Ten percent of that is $700 billion. That means we the taxpayers will be paying interest to the banks on at least $700 billion annually – this so that the banks can retain the reserves to accumulate interest on ten times that sum in loans.
The banks earn these returns from the taxpayers for the privilege of having the banks’ interests protected by an all-powerful independent private central bank, even when those interests may be opposed to the taxpayers’ -- for example, when the banks use their special status as private money creators to fund speculative derivative schemes that threaten to collapse the U.S. economy. Among other special benefits, banks and other financial institutions (but not other corporations) can borrow at the low Fed funds rate of about 2%. They can then turn around and put this money into 30-year Treasury bonds at 4.5%, earning an immediate 2.5% from the taxpayers, just by virtue of their position as favored banks. A long list of banks (but not other corporations) is also now protected from the short selling that can crash the price of other stocks.
Time to Change the Statute?
According to the Fed’s website, the control Congress has over the Federal Reserve is limited to this:
"[T]he Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute."
As we know from watching the business news, "oversight" basically means that Congress gets to see the results when it’s over. The Fed periodically reports to Congress, but the Fed doesn’t ask; it tells. The only real leverage Congress has over the Fed is that it "can alter its responsibilities by statute." It is time for Congress to exercise that leverage and make the Federal Reserve a truly federal agency, acting by and for the people through their elected representatives. If the Fed can demand AIG’s stock in return for an $85 billion loan to the mega-insurer, we can demand the Fed’s stock in return for the trillion-or-so dollars we’ll be advancing to bail out the private banking system from its follies.
If the Fed were actually a federal agency, the government could issue U.S. legal tender directly, avoiding an unnecessary interest-bearing debt to private middlemen who create the money out of thin air themselves. Among other benefits to the taxpayers. a truly "federal" Federal Reserve could lend the full faith and credit of the United States to state and local governments interest-free, cutting the cost of infrastructure in half, restoring the thriving local economies of earlier decades.