oldroy Loc: Western Kansas (No longer in hiding)

I say it could very likely be true, especially the part about what the Federal Reserve really is. So many people believe that the Federal Reserve is a part of our government and it has never seemed to be that to me. Maybe more of us need to understand the Fed and what it actually does to keep us from seeing what it really is. Maybe this video is simple enough for many to see what is going on.

http://www.youtube.com/watch?v=Oe0fGXzKb1o

MarvinSussman

A pack of lies. The Fed does not lend money to Congress, which creates money by deficit spending. The Treasury auctions treasuries to cover the deficit. I could go on correcting the lies forever but what's the use.

J Anthony Loc: Connecticut

J Anthony Loc: Connecticut

I don't know Marv. I believe the Fed and it's private multi-national owners do create our currency,, with the exception of coins(which is only one/one-thousandth of the money-supply) and lends it to the government. Otherwise, who is the money owed to? Not ourselves, that's for sure.

J Anthony Loc: Connecticut

J Anthony Loc: Connecticut

Check out the book "Web Of Debt" by Ellen Brown, the best book yet wwritten on the subject. A must-read. You won't regret it.

oldroy Loc: Western Kansas (No longer in hiding)

I would think that you need to point out some of the laws instead of shouting "PACK of LIES" and telling the ones you have done. Marvie we have never agreed about this topic and you have never enlightened me concerning how the Fed was originally created and why. How about you doing that for me.

Alice Maxwell

Mr. Sussman is very wrong. The Congress has abdicated the printing of money and given the license to do so to the Federal Reserve. This unconstitutional action saved the day when Paulson and Bush went hat in hand to Congress and admitted the USA was unable to scare up 800 millions to do anything! Since the Saudis had extended the "beneficent" period for payment for oil delivered to the USA then twice,they would so do no more and so oil would not flow and Americans could watch their cars sitting without fuel in driveways,streets and garages! It was a replay of what happened to Nixon.

The Fed is allowed to issue money for the USA because it uses what it prints to buy up our vaunted Treasury bonds, etc.which it can't sell to anyone else. OPEC will not accept them. The other countries haven't the cash to pay for them but accept them as the usual lend lease crap to cover their deficits too. The Fed makes the banks under its jurisdiction "buy"them and then use them as"reserves" to meet the"soundness" regulation imposed by Congress for them to continue their operation of distributing the "credits" to us all to continue to buy and sell,just keep going.
The Treasury and the many agencies issue checks with Uncle Sam's imprimatur and has not a dime in any bank with which to fund them. Congress bought the illusion of Fed being able to do what the US givernment could not do even ii illegal just to keep the American myth of superiority going!

This week the American banks, the Swiss banks threw in the towel and have served notice on Washington they will not be the fall guys for the collapse coming. They are tired of being the strawmen for the mismanagement of our society and government. They have issued the real facts of their financial situation and none of them have any reserves but useless USA paper. Why have they given up? The biggest banks have been hit with astronomical fines by Obama's new eager beaver regulation boys and girls who think money grows on trees and the banks have nothing but USA givernment paper that even the USA does not want to redeem. The government hasn't a sou to pay them.

The muslim i***t Obama has issued in the last three weeks executive orders that will cost in excess of the national budget for one year for his new giveaways!

This is the collapse that will engulf all you stupid people who never read what Congress is doing! There will be no credits to enter in your bank accounts and voila,not a dime will you have unless you have been saving cash to live with!

The Chinese and Russians,even the Indians are smarter than weare. They are prepared for what is happening. Very few Americans are!

Ferguson was the answer to what is coming from Obama and crew. They hope they can get 10 million b****s and about 10 million confirmed socialists to back them with violence and cow everyone else. France was the trial balloon only there the socialists hope they can get the Islamites to cow the French who are not with them. In Great Britain and the rest of Europe, they are all cowed already so there is no plan to deter them!

oldroy Loc: Western Kansas (No longer in hiding)

If you aren't a progressive which really means socialist you can't accept what has been said about what will happen to our country any time now. The fed does the printing of money and I am sure that what all else you said is very true. Good post for your first one here.

UncleJesse Loc: Hazzard Co, GA

If there were no Fed, the free market would rule monetary policy meaning unsustainable volatility in the finance industry. Cash would be king while credit would be rare. The free market says, "show me all the money" while the regulated Fed economic policy is more like, "I trust you will pay this off if you make an earnest money deposit and pay interest". The former slows investment and money exchange in the economy while the latter grows it.

An analogy is a community home owner's association. The free market would let any home owner do as they will even if it affects the value of other homes or quality of life of others in the community. The HOA isn't owned by any one person, it is not a government entity but has government rules to follow, it is considered a private entity that has a common goal. If any one home owner has a problem with their property, they are on their own but if there is a community problem that affects multiple properties, the HOA sets the goal, agreed upon by owners and everyone has to participate financially toward that end.

The analogy is that the Fed is a banker's HOA.

MarvinSussman

The Fed creates money but it can only trade it for assets, not lend it.

The Treasury owes money to those who bought treasuries, just like Chase owes money to those who bought a CD. There is not and never was a mystery. Just ignorance.

J Anthony Loc: Connecticut

J Anthony Loc: Connecticut

What assets, aside from the debt itself, does the Federal Reserve get get for issuing our currency? And why are coins still debt-free, government-issued currency bbut 99.999% of the money-supply is not?
Ask the average citizen how the system works or what exactly the Fed does, you'll see how big of a mystery it still is

J Anthony Loc: Connecticut

First of all, "progressive" is not synonymous with "socialist", anyone who buys that is a fool.
Secondly, what Alice doesn't understand is that the root of the problem, as it's always been, is who has the power to issue the currency and how they do it. It's past time for us to take back that power and issue our own debt-free currency, backed by the full faith and credit of the citizenry, not continue to be s***es to the current system of currency backed by artificial debt imposed on the country by government-subsidized private-banking interests. Franklin, Jackson, Lincoln- they all understood this and tried to do something about it. Today's politicians either don't understand it, don't care, or both. Without the people's comprehension of the matter we will continue to be led into this trap and when the house of cards collapses, once the interest on the odious national debt becomes unpayable, we will be told lies about the cause, and a new, harsher currency-regime will be imposed upon us yet again. But not if a majority of us wake up first.

Alice Maxwell

The Federal Reserve does not back Treasury bonds. The honor and faith of the United States of America does. It is the Treasury that redeems its bonds. Today our Treasury cannotredeem or even pay interest.

Lately we have been hearing about stringent oversight of national park lands which is a"euphemism" for sudden interest by Washington in what could be sold re those lands to redeem the bonds for which they have no money to do so. The Congress is in on this business and has given away the whole ofthe national lands for this new project but the states are up in arms. The land was taken from the states since the Civil War and that set in motion our national bankruptcy The sixty years that followed the termination of that conflict is what led us to arrange for a central bank, the Federal Reserve, to whitewash the problem.

Establishing the Federal Reserve made stupid Americans think there was a great pot of cash in private hands that could be tapped to bailout our bankrupt national government. Well there wasn't any because the so called free marketeers had been making partners of governments anxious to improve their balance sheets and hoping that the miracles of discovery in far off lands would do the trick. They didn't, they just gave a fictional euphoria to the masses, cleverly exploited by those trying to keep the financial systems in every nation going. It was robbing Peter to pay Paul and eventually, the major players had to go to war amongst themselves to pick the ones who would continue as the most wealthy to keep the illusion that money was there to be had when it was not. The whole notion of the British Empire was to give the anglo-americans a greater shot at the brass ring and it worked even though it impoverished everyone involved, including us. It supplanted the remnants of the Holy Roman Empire in Central Europe but the lack of funds still persisted.

That's why we had WWII. By the 1930's, the entire industrialized world was out of cash, the politicians were promising heaven on earth to their people and so some had to invade others to keep the illusion that someone else had the wealth to keep them going. The new incentive was to make a global government so big no one could manage it and so illusions would continue to rule over reason.
That's why we had the"build up"on both sides that so confused the people. Mussolini and Hitler were the darlings since the c*******t/socialists in Russia were failing from day one of their revolution. The public was seesawed back and forth until public opinion could be focussed on one side for the USA to join in the effort. Japan was maneuvered into Pearl harbor and the die was cast. The West, the anglo-americans would take on the rest.

We won but Britain was exhausted. It had no money at all, not even illusions. We had no money left either but we had that great American spirit that our west would see us through! Our great landmass, our west, could refuel the illusion and get us out of the morass!

Eisenhower had mapped out a great national road system to expedite the raising of our spirits and it took off, driving the recovering t***sport industries to new heights, focusing on technology to do what gold and silver used to do, create wealth where there was none. The sheen of gold,silver, all metals was t***sferred not only to the t***sport industry but to the home. Tech would wash dishes, clothes, aircondition and heat them and that took off too.
World Fairs showed us the future and then American Express showed how you could increase the use of credit to get people to buy it all and we were off to the races and we have never turned back. We got charge cards, plastic to replace cash and everyman was given them. I can still remember men showing their wallets and the many cards they had and one man stood out when he said "I make 8.000 a year but I can buy 100,000 bucks of stuff with these cards!" That was back in the early 70's and I knew then we were on a rollercoaster that was going to give us a hell of a ride!

And what a ride we have had!

I get a kick out of all those dolts who blame the bankers. Throughout the last millenium, the banks and their bankmen have juggled the cash needs of first shipping and trade for goods from far away places to setting up accounts for every living person who can sign name,address , say they have income and voila, they morphed from deposits and savings to ATM's and in each step of the way,they mirrored exactly what their governments were doing...using the banks to give the false impression we were all accumulating wealth when all we were doing is trading ever increasing "limits" on what we could borrow to finance the next innovation we were told we had to have or we honestly found we wanted. This is the so called free market we are told about so much!

The only wealth humans ever accumulate is what they can warehouse and keep through their lifetime and then, half is taken to satisfy creditors and what is left, maybe the estate. Of course it is taxed and from time to time it is lost in risk and gambling, far more in those directions than the economists want to chronicle.

You can lambaste the Fed, the creature from Jekyll Island,the international Monetary Fund but they are all just devices to keep your fanciful illusion that wealth is out there in a pot of gold,silver,stocks, bonds, but like houses,you don't have it while the mortgage and taxes must be paid. In fact, nothing is adding much to you except when you sell it and can buy with the proceeds something to replace it and have no more debt to do so. The only wealthy in this world are those who have done just that and guess what, all the debtors in this world want to take it from those who have been so careful to get their affairs in order. that way! In simpler terms,the takers want to get it all from the makers! The problem is that we have so many more takers than makers and that is why governments and empires fail every epoch without cease!

I am 90years of age and have lived all over this world. The talk about emerging nations and the greatness of America is bull s**t. If you have wide open spaces you have a chance at the brass ring, if not and you are confined to fenced in areas,you can just go so far and then you reach limits and there you stay. Climate can affect too since if it is too cold or too hot,those limits are like fences, restrict you. If you have too many people in a small space,not so good and if you neglect to tell your youth to look around and see for themselves what is there,you are stymied absolutely.