Sunday, November 02, 2014

Tru'merica: The Magic Wand of Money Creation

The Federal Reserve recently annouced it is ending "quantative easing", an obsfucation of virtual money printing intended to counteract the financial Panic of 2008. History often provides enlightening perspective. The Panic of 1907, in which there was a damaging run on banks by depositors demanding gold and silver for their banknotes, is said to a major reason for establishing the fourth central bank in the United States (counting the Bank of North America that operated under the Articles), the Federal Reserve System. The existence of a central bank is not per se dangerous to democracy, but the private ownership of the central bank by plutocrats is as warned by Jefferson, Jackson and other statesmen. Nor is deficit spending for national purposes a bad thing unless there is too much of it. US Person does not wish to be identified as a 'spaz' who wants to return to the gold standard even if he would get to meet Alan Greenspan.

The 1907 Panic was created by JP Morgan's rumour-mongering against a competitor, the Knickerbocker Trust Co. Morgan's bank functioned as the nation's central banker in the absence of such an institution. When legislation was called for to solve the nation's currency problems, the "Money Power" {17.10.11, End the Fed} composed of the three largest New York banks, including Morgan's and the Rothschilds' (via banker Paul Warburg), made sure it created favorable legislation at a 1910 secret meeting on Jekyll Island, Georgia to insure control of a national central bank. Incredibly the 1913 National Reserve Act that resulted from the bankers' scheming also gave the Reserve the power to regulate the nation's money supply, more power than the original conspirators dreamed possible.

The Federal Reserve System a century later has no government oversight and does not answer to elected political leaders. Federal Reserve's leaders such as the Federal Open Market Committee (FOMC), which sets the nation's monetary policy, are largely chosen by the private member banks not the government. So it is the banksters who bailed themselves out of a speculative 2008 Panic using money ($3 trillion according to GAO) they "printed" by issuing public debt--a veritable magic wand to conjure money into existence at the expense of taxpayers. Watch these brief videos and join US Person when he says, don't just end quantitative easing, but end the Fed!