Tagged: Federal Reserve

What You Didn’t Know About the Dollar & Iraq

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.

Goodbye Gold

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.

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Tragedy and Hope (p. 324)

In addition to these pragmatic goals, the powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent and private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank, in the hands of men like Montague Norman of the the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the bank of France, and Hjalmar Schact of the Reichsbank, sought to dominate its government by its ability to control Treasure loans, to manipulate foreign exchanges, to influence to the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.

— Professor Carroll Quigley, in Tragedy and Hope: A History of the World in Our Time, 1966, p. 324

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Rip-off by the Federal Reserve

Originally Published at Conspiracy Archive on 2010/09/27

fed-governors

by Old Reb

The Federal Reserve uses euphemistic smoke and mirrors to obscure their operations. With full knowledge the following is not the way the Fed/government describes the system, allow me to offer a different analysis of their mathematical operation.

Congress can pay for federal expenses with funds collected from taxes, but Congress is never satisfied with this amount. The desire to buy votes/campaign contributions from special interest groups induces congress-critters to spend more, and this is identified as deficit spending. To create this make-believe money requires the assistance of the Federal Reserve.

Congress will give the Fed a security (bill, bond, or note) and the Fed will accept the document as an asset of one of the twelve FR Banks. The Fed will then establish a line of credit for the U.S. government for the same amount and list the liability as Federal Reserve Notes. Presto !! Fiat money has just been created for Congress to spend. Ref: 2009 Annual Report to Congress by the Board of Governors, page 448. The accumulated securities that are not redeemed add up to the national debt.

The fiat money is identified as a legal tender. A “legal tender” is something that is required by law to be accepted as payment for a debt – it is compelled satisfaction for, but not payment of, the debt.

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