Unmasking the ESF (or IMF and WorldBank, who’s your daddy?)

 
Back in the Depression, the US Treasury Department got a mysterious office called the Exchange Stabilization Fund, which actually kickstarted the International Monetary Fund. It was funded initially with all the gold they jacked from the American public in the Gold Reserve Act of 1934, and has been used to fund CIA operations around the world. The case is made pretty clearly by Eric deCarbonnel (MarketSkeptics), who traces the history of the ESF  in his new video series [see below].

[According to Eric deCarbonnel] the US Government has taken over the world and the ESF has been its weapon of choice. He points out that the ESF has no oversight, and basically says it’s the place the CIA has kept the credit card rolling all these years. In short, the ESF is the slush fund for America’s most corrupt endeavors hidden from plain view with cloak of “National Security” as its cover.  

There is no doubt that great sins have been committed by the self-serving shadow government in the ESF and Federal Reserve to prop up the dollar system. Although, they may not seem themselves as evil they are certainly self-serving. They view it as their role to do everything necessary to ensure that the dollar remains the world reserve currency–and thus maintain the Anglo-American world Empire. If you are looking for who is responsible for the repugnant policies that so adversely effect developing countries, as described in John Perkins‘s book Confessions of an Economic Hit Man, look no further.

keynes_white_casEnter Harry Dexter White

The name is as deceptive as the individual. He was a son of Jewish immigrants, graduating from Harvard late in life, but brilliant in his intellect and determined that America would rule by the strength of the dollar and that Britain was finished as a world power.

The ESF, through then-Treasury Secretary Harry Dexter White, virtually created the modern money system, including the IMF and World Bank. White was the senior American official at the 1944 Bretton Woods conference, and reportedly dominated the conference and imposed his vision of post-war financial institutions. After the war, White was a major architect of the International Monetary Fund and World Bank.

In his new book on Bretton Woods – the financial system that underpinned the post-war world until the early 1970s – Benn Steil makes an interesting point. Apparently, Harry Dexter White, the chief American architect of the system, was actually a spy for Joseph Stalin’s Soviet Union.

In August 1948, White testified and defended his record to the House Un-American Activities Committee. Three days after testifying he died of a heart attack. Historians agree he passed secret state information to the Soviet Union during World War II.[1] 

But as Steil tells in The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order, historians have also been clear about the truth “for at least 15 years now.” His bottom line is succinct: “White was arguably more important to Soviet intelligence than Alger Hiss, the U.S. State Department official who was the most famous spy of the early Cold War.”

Harry Dexter White legacy, the ESF.

In a nutshell, the ESF is a slush fund beyond Congressional oversight. It can be used to ‘get around’ most anything (i.e., it can skirt normal governmental procedures) and operates outside the law. There is no room for it in our democratic process. It is not subject to the normal checks-and-balances so carefully crafted by the Founding Fathers that have proven over time to be so essential for control within the federal government. The ESF is the antithesis of the American foundation of representative government because it subjects a free people to the false authority of unconstitutional governmental force.

After months of work, the video series on the Treasury’s Exchange Stabilization Fund is finally finished! Why you should watch these five videos: It is impossible to understand the world today without knowing what the ESF is and what it has been doing. Officially in charge of defending the dollar, the ESF is the government agency which controls the New York Fed, runs the CIA‘s black budget, and is the architect of the world’s monetary system (IMFWorld Bank, etc). ESF financing (through the OSS and then the CIA) built up the worldwide propaganda network which has so badly distorted history today (including erasing awareness of its existence from popular consciousness). It has been directly involved in virtually every major US fraud/scandal since its creation in 1934: the London gold pool, the Kennedy assassinations, Iran-Contra, CIA drug trafficking, HIV, and worse … ” – Market Skeptics

Here is a Daily-Bell article which gives an analysis of these videos:

Fearfully, the US Treasury’s Secret, 75-Year-Old Fund and Its Dark History Has Been Exposed?

Many of the problems of the modern world can be traced to the ESF, according to Mr. deCarbonnel. He proceeds to make the case for his argument in over an hour of insights and detail.

We have been reading and writing about the New World Order for decades but the information presented by deCarbonnel seems, in some ways, new to us. (That doesn’t mean it’s accurate, of course.) We would be remiss in not making the following point: According to Mr. deCarbonnel, he is also related to Frank Vanderlip, one of the founders of the US Federal Reserve system, so the series of videos can also be seen in some way, perhaps, as a defense of Vanderlip and private banking.

Anyway, let’s jump in. We will try to summarize Mr. deCarbonnel’s argument for those who don’t have the time or patience to sit through all five videos. Here are his arguments (buttressed, to be sure, by a plethora of historical sources) in approximate order in bullet points:

• The ESF was created WITHOUT OVERSIGHT by Congress in the 1930s to ensure support of the dollar. It has done a lousy job of what it was supposed to do, as the dollar has lost almost all its value.

• The ESF was put in the hands of the head of the US Treasury and the US Treasurer has absolute power to do what he wants with the fund.

• As a result, the ESF has acted as a giant slush fund that has funded the growth of the American Empire over the past century – against the will of both Congress and many bankers in private industry.

• The ESF also effectively runs the US Federal Reserve and tells the New York Fed what to do. It does this because it is responsible for stabilizing the dollar and implementing policies that are in the national interest.

• The ESF leaves few traces of its activities, as Congress mandated that it must conduct its affairs without oversight. Thus, dissembling is part of its mandate. Its bureaucracy lies as a matter of policy.

• The ESF was responsible for Project Mockingbird, apparently ongoing still today, and places many of America’s top journos under the control of the CIA. The publishing industry – with a special emphasis on books about politics and American foreign policy – is an especially large part of this false flag operation. Books are seen as a key to controlling the American intelligentsia. The Internet has partially broken the promotional chokehold of Mockingbird.

The ESF is legally MANDATED to lie, which is why even an audit of the Fed will not reveal the true nature of what has taken place in the US and the world in the past 100 years. The Fed and the ESF are symbiotic, but the ESF is in charge.

• In order to prop up the dollar, and to protect the interests of the US, the ESF has performed an enormous number of illegal tasks. It does so with maximum anonymity and without oversight of the rest of the executive branch or the Treasury itself.

• John F. Kennedy was ready to expose the ESF and its dark deeds and to create a new, non Bretton-Woods financial system, which is why he was murdered by a “magic bullet.” Later on, his brother was murdered for the same reason.

• The ESF, thus empowered, has continually and energetically bankrupted the US in order to save it.

• It has disposed of much if not all of the nation’s gold supply.

• It used its secret funds to first create the CIA and then to fund its cover operations, including destabilization ofdemocracies around the world.

• It has demanded enormous amounts of money printing from the Fed to prop up the US economy, the dollar and its illegal operations.

• It has coerced the Japanese, Chinese and others into buying dollars to mop up “inflation.” (Ed.: He means “price inflation” actually.)

• It has sanctioned and created drug addiction in the US to “dollarize” the rest of the world. It has done so by imposing money-laundering regulations on banks that force drug dealers to export, via smuggling, tens and hundreds of billions of physical dollars out of the US.

• It has created a sophisticated forgery apparatus to ensure that the dollars do not flow back into the US, creating inflation. These dollars are apparently being printing by the US Treasury at a loss, but are the same as regular dollars in almost all ways. As a result, foreigners are afraid to bring their dollars back into the US for fear they will be confiscated as counterfeit.

• Because there are so many drugs flowing into the US, especially heroin and cocaine, people are dying of drug use in record numbers. As a result of these deaths, the ESF created the fiction of AIDS. It is still the accepted explanation for the deaths of millions, but there is no explanation for why the “virus” is found equally in men and women, although the deaths have been predominantly gay men who, especially in the 1980s, were apparently aggressive abusers of powerful drugs that depress the immune system. African statistics showing AIDS deaths are merely made up and not to be trusted.

• In order to keep the supply of dollars flowing out of the US, and to continue to fund illicit activities, the ESF has been responsible for wars as well as for covert and illicit assassinations and destabilizations. It was, for instance, responsible for the war in Afghanistan. The Taliban had begun eradicating poppy fields and this could not be tolerated, as the supply of heroin worldwide was plunging. Today, the CIA and US military guard the Afghan poppy fields and heroin production is heading toward peak supply.

• ESF manipulations have resulted in global “blowback.” The dollar is in ruins. The ESF and its enablers are becoming unglued. Even Alan Greenspan has begun to admit the fraud that surrounds the ESF.

• As the ESF and the dollar itself has operated as a kind of Ponzi scheme and like all Ponzi schemes has fostered misinformation and disinformation. One of the most pervasive of these “tales” is that the world is run by an elite group of individuals intent on creating a New World Order. Even journalists who believe they are working for this group are being misled. The New World Order is nothing but a beard for the world’s real power, which is the ESF and its enablers and associates.

• In reality, those who are responsible for the Ponzi scheme, bankers and government officials alike, are culpable. Mr. deCarbonnel says that they have no idea of what is about to happen to them. Hundreds of millions who have been defrauded by the ESF Ponzi scheme and all its ramifications are likely to be merciless when it comes to light. Justice will winnow those involved with special vehemence.

OK. Having summarized these arguments (we tried to hit the highlights, though doubtless we have left out some points), we will try to anticipate the arguments of cynics as well (too many of whom congregate here, for some reason).

These cynics, especially if they have listened to Mr. deCarbonnel’s entire exegesis will make several points, the main point being that it is somehow a “limited hangout” in which a submerged “piece of the puzzle” has been presented as the mechanism for the Way the World Works.

The argument will be made that the REAL elites are preparing for a century’s worth of malfeasance to come to light and that exposes such as deCarbonnel’s provide a foretaste (perhaps a controllable one) of what will dominate the news over the coming months and years.

The main argument will be that by denying the existence of a New World Order, Mr. deCarbonnel is shifting the responsibility from where it belongs to the ESF. In other words, there is a coterie of what we call the Anglospherepower elite and it DOES make decisions. The ESF is merely another tool in an arsenal of weapons that have been employed to dominate the world.

Such cynics as we have described will claim that deCarbonnel’s expose is really another way of hiding what is actually taking place and of making sure the “finger of blame” gets pointed at a free-floating American evolutionary (bureaucratic) system and its enablers rather than at the REAL controllers residing historically in the City of Londonand elsewhere.

These cynics might also argue (full confession: we have in the past) that the footsteps of the French Revolution are echoing more and more loudly as such exposes as deCarbonnel presents continue to find their way to the popular media. It will be argued that the same thing happened in the 1930s during the Pecora Hearings where the modern regulatory state’s bureaucratic apparatus was falsely erected and Wall Street was made into a convenient scapegoat for corruption that went far higher.

Conclusion: Whatever one thinks of Mr. deCarbonnel’s point of view (we’re not endorsing it, merely presenting it), his perspective regarding the ESF is intriguing, and he seems to us a passionate financial journalist in the modern Western tradition. He states at one point that his expose – and others – could not have found their way to the public forum without the Internet, which Mockingbird still does not control. In providing this interesting group of videos to the general public via YouTube, deCarbonnel seems to be providing proof of his point of view.

11 Reasons Why The Federal Reserve Should Be Abolished

By Michael, on May 6th, 2013

The Federal Reserve

If the American people truly understood how the Federal Reserve system works and what it has done to us, they would be screaming for it to be abolished immediately.  It is a system that was designed by international bankers for the benefit of international bankers, and it is systematically impoverishing the American people.  The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years.  The Fed creates our “booms” and our “busts”, and they have done an absolutely miserable job of managing our economy.  But why do we need a bunch of unelected private bankers to manage our economy and print our money for us in the first place?  Wouldn’t our economy function much more efficiently if we allowed the free market to set interest rates?  And according to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.  So why is the Federal Reserve doing it?  Sadly, this is the way it works all over the globe today.  In fact, all 187 nations that belong to the IMF have a central bank.  But the truth is that there are much better alternatives.  We just need to get people educated.

The following are 11 reasons why the Federal Reserve should be abolished…

#1 The Greatest Period Of Economic Growth In The History Of The United States Happened When There Was No Central Bank

Did you know that the greatest period of economic growth in U.S. history was between the Civil War and 1913?  And guess what?  That was a period when there was no central bank in the United States at all.  The following is from Wikipedia

The Gilded Age saw the greatest period of economic growth in American history. After the short-lived panic of 1873, the economy recovered with the advent of hard money policies and industrialization. From 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita, despite the panic of 1873.  The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled.

So if our greatest period of economic prosperity was during a time when there was no Federal Reserve, then why shouldn’t we try such a system again?

#2 The Federal Reserve Is Systematically Destroying The Value Of The U.S. Dollar

The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created in 1913.

If you do not believe this, just check out the inflation chart in this article.

The Federal Reserve systematically penalizes those that try to save their money.  Inflation is a tax, and the value of each one of our dollars goes down a little bit more every single day.

But over time, it really adds up.  In fact, the value of the U.S. dollar has fallen by 83 percent since 1970.

Anyone that goes to the grocery store on a regular basis knows how painful inflation can be.  The following is a list that shows how prices for many of the things that we buy on a regular basis absolutely skyrocketedbetween 2002 and 2012

Eggs: 73%

Coffee: 90%

Peanut Butter: 40%

Milk: 26%

A Loaf Of White Bread: 39%

Spaghetti And Macaroni: 44%

Orange Juice: 46%

Red Delicious Apples: 43%

Beer: 25%

Wine: 60%

Electricity: 42%

Margarine: 143%

Tomatoes: 22%

Turkey: 56%

Ground Beef: 61%

Chocolate Chip Cookies: 39%

Gasoline: 158%

Even the price of water has absolutely soared in recent years.  According to USA Today, water bills have actually tripled over the past 12 years in some areas of the country.

So how can the Federal Reserve get away with claiming that we are in a “low inflation” environment?

Well, what Ben Bernanke never tells you is that the way that the government calculates inflation has changed more than 20 times since 1978.

The truth is that the real rate of inflation is somewhere between five and ten percent right now, but you will never hear about this on the mainstream news.

#3 The Federal Reserve Is A Perpetual Debt Machine

The Federal Reserve system was designed to be a trap.  The intent of the bankers was to trap the U.S. government in an endless debt spiral from which it could never possibly escape.

But most Americans don’t understand this.  In fact, most Americans don’t even understand where money comes from.

If you don’t believe this, just go out on the street and ask regular people where money comes from.  The responses will be something like this…

“Duh – I don’t know.  I’ve got to get home to watch American Idol.”

This is why it is so important to get people educated.  I think that most Americans would be horrified to learn that the creation of more money in our system also involves the creation of more debt.

The following is a summary of money creation that comes from one of my previous articles

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

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

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

So what does the Federal Reserve do with those Treasury bonds?  I went on to explain what happens…

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

But wait.

There is a problem.

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

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

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

But that never actually happens, does it?

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

Men like Thomas Edison and Henry Ford could not understand why we would adopt such a foolish system.  For example, Thomas Edison was once quoted in the New York Times as saying the following…

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

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

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

Unfortunately, today most Americans don’t even understand how the system works.  They just assume that we have the best system in the entire world.

Sadly, the reality is that the system is working just as the international bankers that designed it had hoped.  The United States has the largest national debt in the history of the world, and we are stealing more than 100 million dollars from our children and our grandchildren every single hour of every single day in a desperate attempt to keep the debt spiral going.

#4 The Federal Reserve Is A Centrally-Planned Financial System That Is The Antithesis Of What A Free Market System Should Be

Why do we need someone to centrally-plan our financial system?

Isn’t that the kind of thing they do in communist China?

Why do we need someone to tell us what interest rates are going to be?

Why do we need someone to determine what “the target rate of inflation” should be?

If we actually had a free market system, the free market would be the one “managing” our economy.

But instead, we have become so accustomed to central planning that any alternatives seem to be absolutely unthinkable.

For example, CNBC cannot possibly imagine a world where the Fed (or some similar institution) was not running things…

But suppose the law were taken off the books? The Fed’s job—in simple terms—is to manage the nation’s money supply and achieve the sometimes-conflicting tasks of full employment, stable prices while fighting inflation or deflation.

How would the U.S. economy then function? Something has to take its place, right?

Global markets would also need some sort of economic direction from the U.S. The Fed manages the dollar — and as the world’s leading currency, a void left by a Fed-less America could throw those markets into chaos with uncertainty about who’s managing U.S. interest rates and the American economy.

I’ve got an idea – let’s let the free market “manage” U.S. interest rates and the American economy.

I know, it’s a crazy idea, but I have a sneaking suspicion that it just might work beautifully.

#5 The Federal Reserve Creates Bubbles And Busts

Do you remember the Dotcom bubble?

Or what about the housing bubble?

By dramatically distorting interest rates and financial behavior, the Federal Reserve creates economic bubbles and the corresponding economic busts.

And guess what?

Now it is happening again.

When will the American people decide that they have had enough?

If you can believe it, there have been 10 different economic recessions since 1950.  And of course the Federal Reserve even admits that it helped create the Great Depression of the 1930s.

Perhaps it is time to try something different.

#6 The Federal Reserve Is Privately Owned

It has been said that the Federal Reserve is about as “federal” as Federal Express is.

Most Americans still believe that the Federal Reserve is a “federal agency”, but that is simply not true.  The following comes from factcheck.org

The stockholders in the 12 regional Federal Reserve Banks are the privately owned banks that fall under the Federal Reserve System. These include all national banks (chartered by the federal government) and those state-chartered banks that wish to join and meet certain requirements. About 38 percent of the nation’s more than 8,000 banks are members of the system, and thus own the Fed banks.

And even the Federal Reserve itself has argued that it is “not an agency” of the federal government in court.

So why is there still so much confusion about this?

We should not be allowing a private entity that is owned and dominated by the banks to make decisions that dramatically affect the daily lives of all the rest of us.

#7 The Federal Reserve Greatly Favors The “Too Big To Fail” Banks

Since the Federal Reserve is owned by the banks, should we be surprised that it serves the interests of the banks?

In particular, the Fed has been extremely good to the “too big to fail” banks.

Over the past several decades, those banks have grown tremendously in both size and power.

Back in 1970, the five largest U.S. banks held 17 percent of all U.S. banking industry assets.

Today, the five largest U.S. banks hold 52 percent of all U.S. banking industry assets.

#8 The Federal Reserve Gives Secret Bailouts To Their Friends

The Federal Reserve is the only institution in America that can print money out of thin air and loan it to their friends any time they want to.

For example, did you know that the Federal Reserve made 16 trillion dollars in secret loans to their friends during the last financial crisis?

The following list is taken directly from page 131 of a GAO audit report, and it shows which banks received secret loans from the Fed…

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

If you will notice, a number of the banks listed above are foreign banks.

Why is the Fed allowed to print money out of thin air and lend it to foreign banks?

#9 The Federal Reserve Is Paying Banks Not To Lend Money

Did you know that the Federal Reserve is actually paying U.S. banksnot to lend money?

That doesn’t make sense.  Our economy is based on credit, and small businesses desperately need loans in order to operate.

But the Fed has decided to pay banks not to risk their money.  Section 128 of the Emergency Economic Stabilization Act of 2008 allows the Federal Reserve to pay interest on “excess reserves” that U.S. banks park at the Fed.

So the big banks can just send their cash to the Fed and watch the money come rolling in risk-free.

As the chart below demonstrates, the banks have taken great advantage of this tremendous deal…

Excess Reserves Parked At The Federal Reserve

#10 The Federal Reserve Has An Astounding Track Record Of Failure

Over the past ten years, the Federal Reserve has been an abysmal failure when it comes to running the economy.

But despite a track record of failure that would make the Chicago Cubs look like a roaring success, Barack Obama actually decided to nominate Ben Bernanke for a second term as the Chairman of the Federal Reserve.

What a mistake.

Just check out some of the things that Bernanke said prior to the last financial crisis.  The following is an extended excerpt from an articlethat I published previously

*****

In 2005, Bernanke said that we shouldn’t worry because housing prices had never declined on a nationwide basis before and he said that he believed that the U.S. would continue to experience close to “full employment”….

“We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”

In 2005, Bernanke also said that he believed that derivatives were perfectly safe and posed no danger to financial markets….

“With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.”

In 2006, Bernanke said that housing prices would probably keep rising….

“Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

In 2007, Bernanke insisted that there was not a problem with subprime mortgages….

“At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”

In 2008, Bernanke said that a recession was not coming….

“The Federal Reserve is not currently forecasting a recession.”

few months before Fannie Mae and Freddie Mac collapsed, Bernanke insisted that they were totally secure….

“The GSEs are adequately capitalized. They are in no danger of failing.”

*****

There are many, many more examples that could be listed, but hopefully you get the point.

And now it is happening again.  Bernanke is telling the American people that everything is going to be just fine and that no major problems are ahead.

Do you believe him this time?

#11 The Federal Reserve Is Unaccountable To The American People

What is the most important political issue to most Americans?

Survey after survey has shown that the American people care about the economy more than anything else.

So why do we allow an unelected, unaccountable entity that is privately-owned to make our economic decisions for us?

The Federal Reserve has become so powerful that it has been called “the fourth branch of government”.  Every four years, presidential candidates argue about who will be best at managing the economy, but the truth is that it is the Fed that manages our economy.

We are told that the “independence” of the Federal Reserve is absolutely critical, but don’t the American people deserve to have a say in the running of the economy?

Our system is broken.  It is a system that will continue to create more bubbles and more debt until the entire thing finally collapses for good.

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

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

But instead of banning government borrowing, we have allowed ourselves to become enslaved to a system where government borrowing actually creates our money.

We do not need to have a central bank.  There are much better alternatives.  We just need to get people educated.

Please share this article with as many people as you possibly can.  These are things that every American should know about the Fed, and we need to educate the American people about the Federal Reserve while there is still time.

Proposed bill slams Fed, allows payments in precious metals.

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=92000

State considers return to gold, silver dollars
By Drew Zahn- WorldNetDaily

A bill being considered in the Montana Legislature blasts the Federal Reserve’s role in America’s money policy and permits the state to conduct business in gold and silver instead of the Fed’s legal tender notes.

Montana H.B. 639, sponsored by State Rep. Bob Wagner, R-Harrison, doesn’t require the state or citizens to conduct business in gold or silver, but it does require the state to calculate certain transactions in both the current legal tender system and in an electronic gold currency. It further mandates that the state must accept payments in gold or silver for various fees and purchases.

While Wagner was unavailable for comment, the bill’s language clearly alleges the nation’s current financial system, with its reliance on the private Federal Reserve system for money supply, is a danger to American freedom.

“The absence of gold and silver coin, whether in that form or in the form of an electronic gold currency, as media of exchange,” the bill states, “abridges, infringes on and interferes with the sovereignty and independence of this state … and exposes this state and Montana citizens, inhabitants and businesses to chronic problems and potentially serious crises that may arise from the economic and political instability of the present domestic and international systems of coinage, currency, banking and credit.”

Further, the bill states, relying only on the depreciating legal tender issued by the Fed subjects citizens to “losses in purchasing power” inflicted by the government, a dilemma the bill says amounts to the “incremental confiscation” of property by government in violation of the U.S. Constitution’s protections for just compensation and due process.

The Fifth Amendment states, “No person shall be … deprived of life, liberty or property, without due process of law; nor shall private property be taken for public use, without just compensation.”
Critics of the current financial system argue that using Federal Reserve notes as legal tender, rather than gold- or silver-backed currency, means the value of Americans’ money (and thus their “property”) is siphoned away by inflation, a process perpetuated by the government’s reliance on legal tender. Gold and silver, critics say, don’t lose their value on the whims of the Federal Reserve.

U.S. Rep. Ron Paul, R-Texas, even favors abolishing the Fed’s system of fiat currency to return to dollars backed by gold. “Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar,” the Texas Republican said. “Since 1913 the dollar has lost over 95 percent of its purchasing power, aided and abetted by the Federal Reserve’s loose monetary policy.
“How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from inflation,” he said.
Wagner joins legislators in several other states encouraging their respective governments to reconsider accepting gold as a form of payment.

Indiana’s S.B. 453, Colorado’s H.B. 09-1206, Missouri’s H.B. 0561, Georgia’s H.B. 430 and Maryland’s H.J.R. 5 are among the gold currency bills introduced just this year in various legislatures. Montana’s H.B. 639 has been referred to the Legislature’s State Administration Committee.

The Gov’ment has done a great job on having us think backwards. The Federal Reserve Note (FRN) may be legal tender, but it has NEVER been legally named a dollar. You will not find any law anywhere that states this. The FRN may be denominated in dollars but this makes it no more a dollar than calling a chicken a duck makes it a fly south in the winter. Legal Tender Laws make us use something for money even if something else may be better. It is a very important point that Legal Tender Laws are always found where Fiat Money is being used. In other words, whenever governments have DECLARED that this and only this can be used as money, they have had to back it up with penalties for those who may want to use something else.

A critic of the bill being considered in the Montana Legislature said, “Gold, and even silver, are in increasingly short supply, so how would the billions of dollars required to run the state of Montana be carried out in precious metals? Obviously, they’d have to issue some form of paper scrip in its stead.” One way to accomplish this goal is to use American Eagle’s in place of Federal Reserve Notes. This could be the answer Montana and others are looking for, and the best part is it would not require any new laws be pasted because American Eagle’s are Legal Tender. Allow me to explain.

If there were a need for “paper script” so that Montana could conduct business electronically, there is a way to set that up as I will explain. First, Montana could simply mandate that money be backed by the American Eagle (which is 1 Troy once of silver). This medium of exchange could serve as new standard for inflation proof money within Montana or any other local community. Soon any store owner could price his/her product/service in American Eagle coin, all the business owner needs to do is divide the retail price in Federal Reserve Notes (FRN) by a ‘Base Rate’ to get the price in American Eagle coin (or Montana silver backed script).

The store owner could make his “Base Rate” any amount he chooses. Should the value of silver go up against the FRN then the “Base” would also move up. The inverse is also true. No matter what happens, the consumer would always maintain his purchasing power as there is no inflation stealing his money. Obviously, the consumer will shop where he gets a better value for his money.

If you have two flower shops accepting American Eagles, one uses a base of 13 and the other a base of 15, where do you think the consumer will shop? The base of 15 gives the consumer more purchasing power, so in time the market place will find equilibrium not by central planing but rather by the market itself.

If the state of Montana used American Eagles (already legal tender) as it’s standard for money–-no new laws would need to be passed. The need for “paper script” is an easy problem to solve, a simple checking account issued from a bank which ONLY allows Silver American Eagles to be deposited is the obvious answer. This system could be legally set-up today and implemented tomorrow without a single new law being written.

The bill being considered in the Montana Legislature is attempting to make uncoined silver or gold bullion legal tender. Personally, I love the bold initiative, but sadly the critics are correct is saying there are practical problems with this idea. I suspect the initiative will fail, but if it does fails, why not implement American Eagle strategy I outlined above? If they did, Montana would set an example of sound money for the rest of the world to follow. If not Montana, then perhaps another state. The ideal place would be Nevada, after all that is the Silver State.