by Mark Owen ©, Feb. 2nd, 2005
The Federal Reserve is a system of private banks separate and distinct from the U.S. government. This banking system was originally conceived by John D. Rockefeller and J.P. Morgan. The FED, as it is known, is listed in the white pages along with Federal Express, the Federal Deposit Insurance Corporation, and other businesses. The bank produces Federal Reserve Notes. They use these notes/dollars to purchase government bonds. These notes are a fiat currency. Historically, all fiat currencies eventually crash due to hyperinflation from over-issuance. The supply of paper is limitless. There is no intrinsic value in paper currency after delinking from a gold standard. This is why they are referred to as bank notes. Legally, they can’t be referred to as ‘money.’ They are mere tickets/tokens. Forced tender laws were passed in order to give the paper currency legitimacy. The only thing giving bank notes value is TAXATION. Gold and silver have intrinsic value due to scarcity and the fact that it takes work to produce them (mining, smelting etc). This is why they have been used as money for 5000 years. Precious metals are a good store of value. They retain their value over time and aren’t subject to inflation. The fiat paper system is designed to create debt through inflation (devaluation of currency). Whenever there is an increase in the money supply without a corresponding increase in gold or silver backing, inflation results. Inflation is a subtle form of theft banks impose upon citizens.
In the 1960s Lyndon Johnson borrowed billions from the French Rothschilds so he wouldn’t have to raise taxes to finance the Viet Nam war. Rothschild agent Charles de Gaulle demanded repayment in gold, not greenbacks. When Richard Nixon was elected he noted that the treasury was almost depleted of gold and he removed the dollar from the gold standard. But the debt still stood. Nixon collateralized the debt with the mineral estate of the western U.S. and a land-for-debt swap was initiated. Much of the western States were given to the banks. This is when Nixon created the Environmental Protection Agency. Their mandate was/is to PREVENT American citizens from logging, farming, ranching or otherwise exploiting these lands being held for the banks. The Bureau of Land Management and other agencies are used to harass ranchers and farmers from the land.
So, what does the foregoing have to do with Middle East? Plenty.
All central banks of the world hold U.S. dollar reserves equivalent to the local currency in circulation to facilitate trade. The dollar is the biggest American export. It is impossible to overstate this. Also, when any country wishes to purchase oil, they must first convert their local currency to U.S. dollars and then purchase oil from the cartels. This is the arrangement hammered out between the U.S. and Saudi Arabia in 1974. The quid pro quo was that the U.S. armed the Saudis to the teeth.