The Wickedness of the Federal Reserve

In commemoration of the centennial of the Federal Reserve, we thought we would invoke the images of cancer, lupus, leukemia, AIDs, and scurvy to describe its destructive, terroristic decimation of the economy and the civil liberties of its subjects. The Fed is a wicked insidious cancer on the nation whose monopoly on currency has been the source of all evils of the 20th and 21st centuries.

 

The Panic of 1907 was an early form of terrorism used to force public policy in favor of the plutocrats who rule the nation. J P Morgan stepped forth with his call for a central bank in the months following the rigged panic, a call which was answered in 1913 by Congress when through parliamentary trickery it enacted the Federal Reserve System.

 

The founders of this proto-Nazi system have been well documented in the Creature From Jekyll Island, to which we refer the reader. They put their new toy to use immediately in the conflagration of World War 1 which they also engineered. The purpose of the Fed was to raise the billions of dollars required to fight the war – billions which found its way into the coffers of the DuPonts, Rockefellers, Carnegies, Morgans, and other Nazi scum who profit from war.

 

The Hidden Secrets of Money, a fascinating video explaining how Fed money works, notes that the creation of the Federal Reserve and the income tax were no mere coincidences. The income tax is an essential requirement for supporting the Federal Reserve.

 

Few people understand that the Federal Reserve is a private corporation whose owners are impossible to identify, but who control America and its people, ruling with an iron fist, removing heads of state at will, and declaring war wherever and whenever it pleases them.

 

Congress nominally oversees the corporation, but their oversight is a public charade staged each year to pacify a few people who are concerned about its vast wealth and power over the currency.

 

The video presents an easy to understand model of how money is created and used to enslave people. The government creates debt which is financed through the selling of bonds. The bonds are purchased by the Too Big to Fail banks, often called primary dealers, who in turn sell them to the Federal Reserve. The Federal Reserve issues a check for which it has absolutely no money to back, a practice which, if committed by ordinary people, would be prosecuted as check kiting. The banks then turn this fraudulent check into checkbook money and exchange it for currency of the printed kind. Most of our currency is digital, but some is printed.

 

So money is now strictly a function of debt. Without debt, there can be no money. The problem with debt is that it incurs interest payments, which is the reason the banksters demanded that Congress enact the income tax in 1913 at the same time that they enacted the Federal Reserve System. Someone, after all, has to pay the interest on the debt, and it surely would not be the banksters who profit enormously from this fraud.

 

The banksters developed their plans for unlimited government and deficit spending as early as the 1890s when they conducted seminars describing how it would work and how lower level bankers could agitate for a central bank. Herbert Hoover spent all of his postwar time propagandizing for big government and interventions into the economy, knowing full well that the banksters planned to trigger a depression in order to ignite deficit spending. He was not president in 1929 for naught.

 

One critical point to understand about the Fed is that its charter guarantees it a 6% dividend each year. Year after year, in good times as well as bad, the owners are paid 6% on their bond holdings, which after 100 years means that the worth of the secret owners of the Fed has grown by 340 fold. This wealth has been used to buy most of the industrial base of the United States for shipment to China for growth of even greater profits. These moves, of course, only benefit the top 1% or less of so-called Americans. This is actually from where Citizen of the World comes, whose current first citizen is Indonesian citizen Barry Soetoro.

 

Another critical point to recognize is that every single dollar brought into existence through this mechanism incurs interest, all of which goes to banksters as noted above. However, this matter of interest exposes the system for the fraud that it is. If the first dollar brought into existence is created through debt, then additional debt must be incurred to pay the interest on the first dollar. Hence, the system will never have enough currency to pay the debt on the currency. It is circular recursive exponential fraud doomed to implode.

 

The US Congress, each and every single one of them bought and paid for whores of the plutocracy, stages high theater with the talk of a debt ceiling, implying that somehow, Congress is imposing fiscal discipline on the presidency or itself. The drama is a complete and utter lie. Without a continuous expansion of the debt supply, the economy would collapse and the ability to pay the plutocrats’ 6% dividend would vanish. Therefore, federal deficits will continue year after year, world without end, until the entire fraud collapses of its own weight.

 

But fear not, the banksters took thought of that possibility when they instructed Clinton and Rubin to drain Fort Knox of its gold – not so much to depress its price through the London Gold Pool and other criminal operations of the government – but to fill their offshore vaults so that they would continue their extravagant lifestyles once gold was re-established as money. Heads I win, tails you lose.

 

The perpetual expansion of money benefits only one class – the 1%, for it is those closest to the currency spigot who benefit before the money expansion causes prices for goods and services to rise. The constant expansion of money deliberately takes from the poor to give to the rich. Thus Americans are hopelessly indebted to the plutocrats, reinventing serfdom. The people are too stupid to know what has happened to them and too stupid to do anything about it. However they are good at selling their children into debt slavery.

 

The Israelites made their children “pass through the fire” to worship Moloch who is Mammon. We hope that you understand that the children were burned alive for their parents' own prosperities. Now you can see why God was very angered by their wickedness.

 

The wars and destruction of the 20th and 21st centuries would be impossible without central banking, for only through the creation of fiat debt money could perpetual war - including the fraudulent war on terror - be waged. The Fed = War = Serfdom.

 

Reference

The Hidden Secrets of Money - Part 4, www.hiddensecretsofmoney.com

 

 

Copyright 2013 Tony Bonn. All rights reserved.

News Flash: East West Trade Wars Lead to Dollar Repudiation

Momentous economic developments have been afoot since the Lehman collapse in 2008 among the developing BRIIIC nations to unseat the US dollar as the primary payment vehicle in international trade after suffering enormously from the ruthless corruption of Western banksters.

 

Jim Willie reports in his Hat Trick newsletter that quiet preparations among Brazil, Russia, India, China, and South Africa, plus Iran and Indonesia for a Eurasian Trade Zone are nearing completion and will draw many other nations into its orbit, including Saudi Arabia and other resource rich nations seeking to break free from imperial American abuse.

 

The formation of the Eurasian Trade Zone will be accompanied by the establishment of a BRICS Development Fund which will finance large infrastructure projects in partnering nations, a partnership which explicitly excludes the United States, in part due to President Obama’s recent efforts to create the Pacific Partnership which required Japan and South Korea to exclude China. This overstep by the Obama administration inflamed smoldering resentment of imperial American dictats to the region.

 

The development fund will be financed by US Treasury paper which the Chinese, Japanese, and Russians hold in abundance.  These nations have been working in concert since 2008 to divest themselves of these financial albatrosses which have seen large devaluations and insolvencies. By using them as collateral for financing infrastructure projects, the development fund will return the treasury paper and dollars back to the US for burial, as Willie puts it.

 

In addition, the BRICS Development Fund will convert Treasury paper into gold, with American and British banks the last holders of these sub-investment grade papers. Germany is the locus of a great political conflict with an established cadre of Western oriented leaders pitted against the emerging Eastern oriented leaders who have forged much of the financial and trading infrastructure of the Eurasian Trade Zone.

 

The “exorbitant privilege” of which former French president Valerie Giscard d’Estaing spoke in the early 1970s is another source of much of the Eastern animosity. The United States has run enormous trade deficits which are not reflected in currency valuations, but which result in inflation and lost store of value for nations holding the debt and currency. The Greenspan – Bernanke administrations at the Federal Reserve have accelerated the abuse and debasement of the dollar. The United States is seen as unable to pay its debts which will double under the Obama regime.

 

Easterners are also furious with the continuous and treacherous manipulations of the precious metals markets, FOREX, and SWIFT systems, the latter of which proved to be the final straw provoking revolt against the dollar. The Petro-Dollar will disappear as the Saudis establish bilateral trade agreements with trading nations, possibly to be funded with gold.

 

Although Willie speaks of a new Gold Trade Note with a “gold core”, we see it as another flop attempt at fiat currency, though it will be marginally more attractive than the USD which is built purely on debt. In this regard, we would point any serious student of internatioal trade to Antal Fekete’s Real Bills Doctrine as a way of building a viable, prosperous, long term trade infrastructure.

 

Willie also notes the overbearing military operations of the United States to thwart these Eastern developments, and the enormous resentment against the United States due to its interference in domestic affairs of sovereign nations, all of which have been incessant since the establishment of the Rockefeller CIA.

 

The implications of these developments are staggering. The United States faces the loss of its “exorbitant privilege” and access to large foreign markets at a time when its fiscal and monetary excesses have wiped out its solvency and credibility. History shows that such nations backed into corners resort to wars to retain their vanishing prestige, but this, too, will backfire and accelerate the demise of the nation.

 

In the long run, if the ruination forecast by these events befalls the USA, and its people realize that they have been ruled by treasonous Rockefeller Empire Nazis, and they call the bluff of the two party system which these Nazis control, they might be able to redeem themselves. Unfortunately, our optimism for such an outcome is most dim.

Reference
USDollar: Ring-fenced and Checkmate, Jim Willie, Goldseek.com, 3/29/2013

Copyright 2013 Tony Bonn. All rights reserved.

All the Crap I Learned in High School - The Great Depression Revisited

Americans seem wedded to the story of the Great Depression, which began in the wake of the stock market crash of 1929, as a tale of the follies of free market economies. Fortunately newer research is chipping away at these long cherished but mistaken lies.

 

We can only recall the lyrics of Kodachrome by Paul Simon which derides the fare of secondary education. Unfortunately he should have leveled his remarks at higher education which is a hotbed of deceits about much of the world but especially of the Great Depression whose aforementioned interpretation is a shibboleth of the well educated American.

 

The standard narrative asserts that greedy Americans and businesses engaged in a torrid orgy of stock market speculation whose bursting wiped out enormous paper wealth. The loss of this ephemeral wealth left the nation poorer while the hapless Hoover sat around doing nothing as Americans struggled for survival.

 

When Americans heard about Roosevelt’s grand plans and economic bailouts through massive government largesse, they realized that hope was on the way, voting with both feet and hands to elect their savior. After Roosevelt enacted his dramatically novel formulas for recovery, economic revival took root and America could sing Happy Days Are Here Again.

 

Many contemporary critics and a few subsequent scholars realized that the cherished myth was more a deceit rather than truth. Murray Rothbard understood early the mischievous role of the Federal Reserve Board in causing and extending the depression. In fact Lawrence Reed, in the vanguard of analysts challenging the conventional wisdom over the past 30 years, cites Rothbard’s alternative assessment, though not fully supportive of it. We take issue with Lawrence's disagreement but that is a topic for another post.

 

Lawrence observes that stock speculation was no more pronounced – perhaps less so – during the 1920s than in previous times, while other economists maintain that it was isolated to a very small minority of stock market players.

 

The Federal Reserve, whose great justification was that it would end market crashes through enlightened monetary management, committed two acts which would guarantee misery for millions of Americans for the next two decades starting in the mid 1920s when it used its many vaunted tools to massively expand the money supply by 60% during the middle part of the decade.

 

Then, fearing that it had created too much of a good thing, the Fed abruptly changed course in 1928, after the death of its chairman Benjamin Strong, by sharply raising interest rates and reserve requirements for banks. This sharp tightening of credit cut the supply of money, forcing many stock market investors into margin calls which led to a spiral of sell offs culminating in the great crash of October 1929.

 

At the time, you could probably count on both hands - with a finger or two left over - the number of Americans who understood the voodoo science of monetarism, the bedrock underlying the policy guidance of the central bank. It is quite likely that many in the Fed did not fully understand what they were doing. But, those in power are infallible, dontcha know? Thus there would be no relief to the nation from the central planners at the New York Fed.

 

Another common deceit about the Great Depression is that Hoover was a do nothing president. As Lawrence and others show, Hoover launched a frenzy of government spending and interventionist policies and agencies to deal with the crisis. In fact, Roosevelt adviser Rexford Tugwell conceded many years after the Roosevelt presidency that the New Deal was simply an expansion of the Hoover programs. Hoover had spent all of the 1920s strongly advocating government intervention in a time of economic crisis from which we conclude that the depression was a premeditated act.

 

Hoover, like his successor, broadly and sharply raised taxes on all as a means of financing government programs, vastly enlarging the government’s take of GDP and federal debt. The portion of the federal share rose from 16.1% to 22.5% toward the end of Hoover’s tenure.

 

In past depressions, most of which ended after 2 years, wages fell to adjust to new economic conditions. But with Hoover’s statist interventions, wages remained stubbornly high – just as they did under Roosevelt’s tutelage, whose union policies entrenched wages at unnaturally high levels.

 

But this poison was not the worst of Congress’ or Hoover’s potion. The Smoot – Hawley act of 1930 which raised tariffs dramatically cut the markets for American farm products and made many others economically prohibitive.

 

So the legacy of Hoover was higher taxes, higher government spending, higher wages, and higher tariffs, while at the same time, the Federal Reserve was drastically shrinking the money supply.

 

Roosevelt campaigned against what his vice president called socialism. In fact, Roosevelt sounded like a very conservative balanced budget limited government candidate. However, in many extraordinary about faces, Roosevelt put Hoover’s policies on steroids.

 

While many credit Roosevelt for saving the nation, the fact that it spent another 10 years in depression on his watch is far more a damnation of his policies than an endorsement. Roosevelt sent storm troopers into the garment district of New York to arrest men who would sew pants for 5 cents below the federally dictated rate. They carried axes to break down the doors of anyone suspected of violating government policies.

 

We must digress at this point. Why would the Roosevelt administration, which had inveighed against the excesses of government in its campaign for election, pursue policies identically enforced in the fashion of Adolph Hitler?

 

For that answer, we must turn to Roosevelt’s former son-in-law Curtis Dall who wrote an autobiography of his famous in-law long after the divorce from the president’s daughter. Dall was also surprised by the abrupt change in Roosevelt, having observed him first hand while governor of New York. Dall’s contention is that Roosevelt was surrounded by miscreant advisors who pursued an agenda of their own rather than of their boss.

 

This theory explains much and I further develop it to state that these advisors were working directly and indirectly for the very plutocrats who engineered the depression as a means of ushering in martial law. The very brutal enforcement methods of the New Deal share the finger print of the Nazis. But both of these systems of tyranny go back to the plutocrats who financed Mussolini, Hitler, and Lenin. World War 2 was in fact the brainchild of the Wall Street plutocrats against whom Roosevelt frequently inveighed and with good cause.

 

On the other hand, FDR was not an intellectual giant – a somewhat pompous frat boy – who valued politics above good governance and thus was supple putty in the hands of his manipulators. Indeed such manipulation was assisted not only by Roosevelt’s vanity, but also by his very frail health which enabled his advisors to fill the power vacuum during the president’s many absences and emergency visits to Bethesda Naval Hospital.

 

Returning to our narrative, FDR’s vast expansion of regulation, diversion of money from productive to non-productive pursuits, and confiscatory tax policies crippled the country for years to come. The Fed continued to tighten money, a combination which sent the economy into a relapse in 1938.

 

It is inconceivable that men could slaughter millions of animals, as Henry Wallace ordered, when millions of people were hungry and starving. The callous disregard of suffering which that administration evinced toward the citizenry was on a par with that of Stalin and additional support for our contention that powers outside the administration were wielding a strong hand.

 

FDR’s treasury secretary Henry Morganthau stated candidly in his diary that after all of the billions spent on solving the economic problems that unemployment was as high as when the New Deal started – essentially an utter failure.

 

In Roosevelt’s defense, there was indeed enormous corruption on Wall Street which desperately called for prosecution, a task which his administration and Congress pursued with some success. It is also true that industrialists in many instances were brutal animals in need of restraint. So while the Wagner act and other labor friendly legislation hindered economic activity, corrections of the excess of capitalists were long overdue. But this is far from an indictment of free enterprise – simply a call for supervision of irresponsible and inhuman management much as the Glass Steagal Act limited the excesses of Wall Street.

 

Lawrence presents a persuasive case that the Hoover-Roosevelt administrations were much more alike than different with both men advocates of strong statist interventions in the case of economic crisis. We also see that both the Fed and both administrations contributed in equal parts to the Depression as they and Congress fiddled while Rome burned.

 

Reference Lawrence Reed, Great Myths of the Great Depression, http://www.scribd.com/doc/108111838/Great-Myths-2011-Final-Web

Copyright 2010-12 Tony Bonn. All rights reserved.

The Disintegration of the Old Economic Order

The house of cards created at Bretton Woods by the plutocratic elite is starting  to disintegrate. Many astute observers are noticing that more than an errant dog will cause the collapse of the rickety structure.

Although we don’t normally delve into economic matters directly, we believe that the urgency of these crises warrant an exception to policy, particularly when the background reporter is Jim Willie. His latest public newsletter presents a series of acute troubles facing the financial world.

We find further justification in our excurses since it underlines one of our major theses – namely that world events are not governed through the sham institutions over which Americans wax patriotic, but rather that sinister selfish people manipulating those institutions are the real movers and shakers of political events.

In particular, it was the plutocratic elite, led by the Bush Crime Syndicate, which murdered a president in Dealy Plaza, forced an elected president to resign in 1974, and attempted the murder of another sitting president in March 1981.

This same cabal of economic hyenas is facing a significant crisis – or engineering one – which is attacking all major pillars of Western economic life.

For those who have been oblivious to the financial storm, several issues are coming to a head.  We briefly enumerate them here.

LIBOR Scandal

The revelations of the enormous fraud perpetrated by major banks such as Barclays, Deutsche Bank, Lloyds and others have forced resignations of senior executives of these and other firms. However, that is nothing compared to the extent of their criminalities. These banks, plus major American banks, the US Federal Reserve Board, the Bank of England, and a cast of many thousands have engaged over the course of years – if not decades – in manipulation of this key rate.

Interest rates, like any other traded good, are two sided. When their prices are subverted through manipulation, someone loses, particularly those depending upon interest income or financial derivatives adversely affected by a certain direction in rates.

Over 350 trillion dollars in financial transactions depend upon this rate, meaning that the plunder is measured in hundreds of billions of dollars, if not more, even with the small basis point clipping of rates.

Although pure animal greed was at the core of this crime, one of the major movers behind it were governments who were hopelessly in debt and running annual deficits of 1.5 trillion USD.

Money Laundering

If you thought that BCCI and its money laundering schemes were things of the past, we would nominate you for fool. Where there is large money and power, there is large corruption. All of the leading financial institutions in the US have a large dependency on money laundering, particularly of the narcotic variety. Willie has mentioned Wachovia’s major involvement in narcotic money laundering prior to its demise. He also notes that money center banks’ survivals depend upon it.

JPMorgan and Interest Rate Swaps

We have previously reported on JPM’s exposure to Interest Rate Swaps as the real background story to its London Whale trades gone bad, but it is worth reminding our readers that the only way that interest rates can remain at 0% in the face of chronic deficits of the current magnitude is through these financial instruments which artificially create demand for bonds. As Willie notes, there is no rush to safety toward US Treasury debt – rather it is a gusher of Fed purchasing of debt through the banks of the Federal Reserve, in this case, Morgan Stanley. After the gold story, this is the story to watch.

FASB Accounting Scandal

In 2009, in the pell-mell of the Lehman crash and stock market sell-off, Congress compelled FASB – the Financial Accounting and Standards Board which specifies accounting rules and standards for public and corporate accounting – to suspend the mark to market standard which required that companies book assets at the lower of acquisition or market price. This suspension of centuries of accounting practice permitted companies to valuate assets at their whims - always through complex inscruitable models - , covering up massive losses in so doing.

If banks were required to adhere to mark to market,  they would have to recognize their bankruptcies and be forced into receivership. Nearly all of the major banks, including the Federal Reserve, are thusly insolvent. The Federal Reserve’s purchases of massively bad debt render it bankrupt. These insolvencies are the real reasons why banks are not lending, plus the fact that the Fed is paying banks to park 1.6 trillions dollars in funds by paying .25% interest.

Stolen Gold

Perhaps the biggest story yet to be widely reported is the massive theft of gold by the major banks as part of their gold shorting schemes to suppress the price of gold. Central banksters fear the price of gold because it, above all assets, signals bankster malfeasance and currency debasement. Hence, they are allowed to sell gold with naked shorts, something which would land an ordinary person in prison.

Having plundered their account holders’ gold, and in conjunction with massive flows of gold to the East, the gold cartel banks are finding themselves in a huge bind. At least 60,000 tons of gold have been stolen by the banks through lease programs in a bid to suppress its price. When the true owners discover the theft, an enormous upward thrust in gold will materialize.

Now that the price is rising, the pressure on these criminals to replace the gold will be volcanic. We believe that this is the main reason Ben Bernanke, once dubbed as the Chair Satan of the Federal Reserve Board, is refusing to engage in raw Quantitative Easing, a fancy term for currency debasement. Doing so would put enormous upward pressure on the price of gold which would in turn demolish the short positions of the gold cartel. Such a result would force them into bankruptcy just as they would face enormous civil litigation. Fortunately for the banksters, they are not subject to criminal prosecution because they own the government lock, stock, barrel and could always invoke national security as a covering pretense.

As a side note, Fort Knox is depleted of all gold. The only thing in its storage bays besides gold plated tungsten bars is nerve gas to be used on US citizens "for their own safety."

We again thank Jim Willie for providing the background summary for our interpretation of these events, and hope that readers can see the abject corruption of its esteemed leaders. Banksters and politicians have a very tight symbiotic relationship which could not flourish without each other.

We are at a loss to explain what the repressive regime which follows will look like, but Nazi Germany is a good place to start. The destruction of the economic order, to paraphrase North American Mossad Director Rahm Emmanuel, is not a crisis to be wasted.

Reference

US Treasury Bonds False Safe Haven, GOLD is the True Sanctuary , Jim Willie, July 26, 2012

Copyright 2010-12 Tony Bonn. All rights reserved.

Is the Price of Gold Manipulated?

Many of our more naïve readers may be shocked to learn that gold is so important that it is the most heavily manipulated currency in the world. But why and how is such manipulation done?

We felt vindicated when Zero Hedge reported a couple of years ago that CIA documents revealed focused and wide spread manipulation of gold. The revelations came as a dividend of the ground breaking work which the Gold Anti Trust Association has done, since its inception in 1998, to demand the government to free the gold and silver markets from deliberate manipulation by government proxy banks.

The documents revealed that not only did the Federal Reserve actively monitor and intervene in gold markets, but it did so in consultation with the CIA. We weren’t too surprised by this disclosure which gave us comfort to know that the agency was not 100% devoted to murdering people.

Ever since John Keynes ridiculed gold as that “barbaric relic,” Americans have paid scant attention to its value in either commerce or their portfolios. Following the economic pied pipers, most investors think that gold is a useless commodity interchangeable with a boat anchor. The savvy investors have loved these bimbos as their absences from the markets have created better buying opportunities for them.

However, the uninterrupted upward price action of the past 10-12 years has caused some to give gold strange new respect. Why would this be so? The primary cause is the loss of value and respect of the fiat money system weighed down with trashy debt and imminent default.

Regardless of the public opinion of gold, it has always played a singularly important role in supporting the mountain range of debt accumulated under the fraudulent fiat money systems which have run amok since the establishment of the Federal Reserve in 1913. The links are not direct but are tangible nonetheless.

In a classic Brer Rabbit scheme, one of the biggest liars in America, Federal Reserve chairman Ben Bernanke, has taken a one man tour of America’s schools to demean gold while defending the indispensability of central banking. Unfortunately for the chairsatan, the facts of history show nothing but a debased currency and more volatile economy since the dawn of central banking in America – and only more so since the men running the financial world are ever more corrupt.

Now all of this talk of conspiracy has been derided with utmost contempt by the Bernankes of this world, but as Elvis Presley said, you can hide the sun for a while but you can’t make it go away, a citation Paul Mylchreest made in a seminal discussion on the manipulation of gold prices in Thunder Road Report of March 28, 2012.

Mylchreest documents the patterns and algorithms the banksters use to control the price of gold using daily and intraday gold price charts to illustrate the inteventions. He shows that finger print type trading actions occur like clockwork at specific times of the days and days of the week. Although the gold cartel cannot ultimately control the long term trend, it can fight a very effective rear guard action to obstruct free price discovery and keep potential buyers on the side lines.

It is thus an open secret among insiders that the physical price of gold is at least 25% higher than the paper price of gold. For those new to the topic, derivative products such as electronically traded funds do not keep a physical supply of gold matching their obligations for gold. In fact their prospectuses state that they do not have to maintain any purity or reserves of gold. Any redeemer of shares can be easily turned away with cash.

But why do the highest levels of government fret over the gold price so much? The main reason is that the price of gold signals the distrust and vulnerability of the fiat regime. Gold rises in price when the market supply of dollars grows, signaling that the central bank is debasing the currency. Since 1913, the Federal Reserve has destroyed 99% of the value of the dollar, leaving it with a constant dollar value of less than 1 cent.

The American government has one other fear of competition from gold - the loss of the exorbitant privileges it enjoys as the issuer of the world's reserve currency, a privilege it has used to menace the world with war and inflation.

It is a well hidden fact that most of the largest banks are functionally insolvent, many having negative common tangible equity – Regions Bank being one such example. If that weren’t bad enough, the Federal Reserve is itself insolvent, with many of the crapulent securities it has bought since 2008 having less market value than book value. However, with the politically motivated FASB, financial institutions no longer need maintain mark to market on securities, thus enabling them to deceive the government, investors, and the public about the true financial states of their organizations.

Some say that all is well with the gold situation, because the government could utilize its vast hoard of gold to moderate its price. It could, but the problem is that the USA pissed away its stolen gold (FDR 1934) through the London Gold Pool during the 1960s and beyond. Even then, the fiat currencies were under stress due in large measure to the massive expansion of US government debt during the 1960s in its imperial war of aggression against Viet Nam.

Ironically enough, the government did use its gold stocks to keep a lid on the price of gold – something essential with inflation indexed bonds and entitlement programs. When the gold reserves were exhausted, ETFs were established to take the role of allowing the gold cartel to sell naked, thus applying immense downward pressure on the price of gold.

If any doubt exists that gold is a barbaric relic, let us recount the story of current Commodities Futures Trading Commission chairman Gary Gensler who, though a bankster’s puppet, was pushed violently against a corrider wall at a Washington hearing by a New York bankster executive who warned him that any continued investigation into commodities price manipulation would result in serious consequences which we interpreted as a death threat. Gensler, according to our source, attempted to report the incident to Congress, but Congressional leadership showed no interest in getting involved.

The above story illustrates that the only barbarity associated with the relic is the behavior of its opponents seeking desperately to uphold the debt based fiat system under which we are enslaved. The best way to fight your overlords is to take physical possession of gold. However, have it assayed since USA banking and government sources are major purveyors of gold plated tungsten.

The major reason for fiat currencies is that they can expand without constraint, thus making wars and colonial conquest nearly risk free for the aggressors. Now you know the other reason the barbarians consider gold a barbaric relic.

Reference
Thunder Road Report, Paul Mylchreest
Copyright 2010-12 Tony Bonn. All rights reserved.