It appears that as the United States’ citizenry continues to learn in increasing numbers about the shenanigans of the privately-owned and unconstitutional Federal Reserve, about the Nazi roots of the Pharmaceutical companies, about the communist roots of major tax-exempt foundations and their collectivist ‘educational’ purposes, about the scientific study out of the University of Copenhagen unequivocally proving the presence of nano-thermite high-tech explosives within the dust of the rubble of the World Trade Center, about the continued confirmations coming out of ‘The Iraq Inquiry‘ hearings ongoing in London that the entire U.S. incursion into Iraq was based on lies, about the opium industry so protected by U.S. interests in Afghanistan that it is booming under U.S. watch care, about the bill in Congress to further restrict gun ownership, about the socialist agenda still attempted to be inculcated within Healthcare reform, and about the undaunted coasting of international leaders to the “Climate Conference” to be hosted by the U.N. in Copenhagen beginning December 7th in spite of the worldwide fraud of “man-made” Climate Change that was exposed last month, to sign a spurious document that sets up the structural framework for global economic governance based on that fraud and which is the precursor to the subjugation of our Constitutional Republic to a tyrannical World Government, our nation’s citizenry and consequently all the world will soon experience the repercussion of an orchestrated acceleration of economic implosion geared to extort our cooperation with and participation in the NEW WORLD ORDER. (And there are still more blockbuster revelations waiting in the wings.)

Read the stunning news from the International Forecaster:

Potential for Fed to Hyperinflate

Reposted from The International Forecaster November 28th, 2009

Always the question about what the Fed will do, more pressure on small and medium banks, municipal bond meltdown, bailouts cant go on indefinitely, looking at the banks, and recalling the French Revolution, the truth of fractional banking.

The following information may be the most important we have ever published. One of our Intel sources, highly placed in banking circles, tells us that on 1/1/10 all banks that have received TARP funds have been informed by the Federal Reserve that they must further restrict any commercial lending. Loans have to be 75% collateralized, 50% of which has to be in cash, which is a compensating balance.

The Fed has to do one of two things: They either have to pull $1.5 trillion out of the system by June, which would collapse the economy, or face hyperinflation. This is why the Fed has instructed banks to inform them when and how much of the TARP funds they can return. At best they can expect $300 to $400 billion plus the $200 billion the Fed already has in hand.

We believe the Fed will opt for letting the system run into hyperinflation. All signs tell us they cannot risk allowing the undertow of deflation to take over the economy. The system cannot stand such a withdrawal of funds. They also must depend on assistance from Congress in supplying a second stimulus plan. That would probably be $400 to $800 billion. A lack of such funding would send the economy and the stock market into a tailspin. Even with such funding the economy cannot expect any growth to speak of and at best a sideways movement for perhaps a year.

We have been told that the FDIC not only is $8.2 billion in the hole, but they have secretly borrowed an additional $80 billion from the Treasury. We have also been told that the FDIC is lying about the banks in trouble. The number in eminent danger are not 552, but a massive 2,035. The cost of bailing these banks out would be $800 billion to $1 trillion. That means 2,500 could be closed in 2010. Now get this, the FDIC is going to be collapsed before the end of 2010, which means no more deposit insurance. This follows the 9/18/09 end of government guarantees on money market funds. Both will force deposits into US government bonds and agency bonds in an attempt to save the system.

This will strip small and medium-sized banks and force them into shutting down or being absorbed. This means you have to get your money out of banks, especially CDs. We repeat get your cash values out of life insurance policies and annuities. They are invested 80% in stocks and 20% in bonds. Keep only enough money in banks for three months of operating expenses, six months for businesses.

Major and semi-major banks are being told to obtain secure storage for new currency-dollars. They expect official devaluation by the end of the year.

We do not know what the exchange rate will be, but as we have stated previously we expect three old dollars to be traded for one new dollar. The alternative is gold and silver coins and shares. For those with substantial sums that do not want to be in gold and silver related assets completely you can use Canadian and Swiss Treasuries. If you need brokers for these investments we can supply them.

The Fed also expects a meltdown in the bond market, especially in municipals. Public services will be cut drastically leading to increased crime and social problems, not to mention the psychological trauma that our country will experience. Already 50% of homes in hard hit urban areas are under water, nationwide more than 25%. That means you have to be out of bonds as well, especially municipals.

As you can see, the Illuminist program is going to come quicker than we anticipated. That in part is because they have had to expedite their program, due to exposure in the IF, other publications and especially via talk ratio and the Internet. There is no doubt we have the elitists on the run.

We are reaching the masses. On TalkStreamLive.com we were on the Rumor Mill this past week and out of 50 talk radio programs we were 5th behind, Rush, Hannity, Dr. Laura and we were tied with Beck. On the Sovereign Economist on Wednesday night we were 5th behind Beck and Savage and ahead of Hannity. Both these programs are not well known and the Sovereign Economist is only about a month old. It shows you what you can do if you work hard enough at it.

The latest favorable events we are told are the seeds of recovery. The green-shoots of spring are to be harvested before winter sets in. We are skeptical of the strength and duration of such a recovery.

The underlying problems are still not being addressed. The US government and the Fed cannot bail out banking, Wall Street, insurance and government indefinitely via monetization. Impaired corporations, no matter what their size, have to be allowed to fail. Stimulus cannot be used indefinitely. Both have to be reigned in, because the longer this charade continues the worse the final outcome is going to be. As we predicted six year’s ago, Fannie Mae, Freddie Mac, Ginnie Mae and FHA are the wards of American taxpayers, as is AIG. All their financial conditions worsen every day. They have again been insuring subprime mortgages by the thousands and when they begin to reset next year, we will be back to 60% failure rates. Even government admits already they’ll see 20% failure rates. This, so that housing inventory can be cut from 11-1/2-months inventory to 7-months, again in order to bail out the lenders at the expense of taxpayers. Government and the Fed have no exit plans for these sinking ships, particularly Fannie, Freddie, Ginnie and FHA, never mind their meddling in the economy guaranteeing everything is sight. Benito Mussolini would be very proud of what they have done.

Then we have those on Wall Street, banking and corporate America who believe they are doing God’s work by looting the American public making outrageous profits by in part using taxpayer funds, and allotting themselves disgraceful bonuses as unemployment hovers at 22.2%. Haven’t these people heard of the French Revolution? Their arrogance has no bounds. The credit crisis hasn’t ended; the Fed has extended it by throwing money at problems. We have a mortgage market that is worse than it was a year ago, only kept from sinking by a tax credit 3% down. As a result now we have more than $1 trillion of new mortgage failures on the way.

Our monetary base has more than doubled. Interest rates will probably stay where they are for 18 months or more and we even have a dollar carry trade. The 2009 fiscal budget deficit was $1.5 trillion and 2010 will be worse. Government is not cutting expenses. They are increasing expenses.

In addition making matters worse corruption is flourishing via the incestuous revolving door between Wall Street, the Treasury, in a multiplicity of other appointments and with the Fed. Is it any wonder 75% of Americans want the Fed audited and investigated. That said, the present set of circumstances cannot be allowed to go on indefinitely. We cannot keep insurance, Wall Street and banking on life support forever. Not when we finance two occupations and an ongoing war, never mind our unfunded liabilities of Medicare, Social Security, etc. most all of these problems are being financed by debt to be paid by our great, great grandchildren. We just created $12.7 trillion for bailouts and the Inspector General tells us we are presently on the hook for $23.7 trillion. What happens if all the recipients need another $20 trillion?

The situation is still dire and the solution is temporary and unworkable and Washington and New York are well aware of this. The game will play out over the next few years. In the meantime the dollar will move lower and inflation, gold and silver higher.

Economics is not complex; it is very simple. Professors and economists would like to have you believe it is complicated when in fact they make it opaque, so you cannot understand it. The same is true with banking. In normal times through the century’s bankers using the fractional banking system usually lent 8 times their assets, or deposits. It was only until recently that the privately owned Federal Reserve told banks within the system to lend 40 times assets or more in order to accommodate the system.

All this is to cover to confuse and hide the truth of fractional banking. Bankers’ indebt borrowers with money they made up out of thin air. Debt is enslavement by the bankers upon the people by buying almost everyone off. In the final analysis banking is a fraud unless money is interest free. The Fed, and all the other banks are a fraud.

The game as we know it today began in 1694 when the Rothschild’s formed the privately owned Bank of England and the production of bank notes began and circulated along with sterling silver coins. The end result has been that the bankers own the world. The system today is based on confidence and trust, something that has been worn thin. A reflection of the loss of trust and confidence is that 75% to 80% of Americans want HR1207 and S604 passed by Congress, so that the Fed can be audited and investigated. The public no longer trusts the Fed and the banks. As a result the con game may well be coming to an end. Fifty years ago we and a handful of other conservative warriors set out to inform the public of the giant scam that the Fed really was. It has been a long hard road. Gary Allen and Alan Stang are gone and of the originals all that are left are G. Edward Griffin, Stan Monteith, Anthony Hilder and us. During our lifetimes we now probably will see the end of the Fed. Because the people have finally been awakened. It was a long hard battle that may soon come to fruition.

The final step will be the termination of the Federal Reserve and its monopoly on financial theft. Unfortunately it will mean the demise of the only financial system we have known for 315 years. We do not know as yet what the new system will be like, but the con game is over and most of the world’s inhabitants are broke. The debt that is owed simply cannot be repaid. Japan, the US, the UK and Europe will be the first to go followed by most of the rest of the world.

You ask who will be the big winners? Gold and silver of course. Just as we have been telling you they would for 9-1/2 years, since gold was $252.00 and silver $3.80. Look at the gains for those who listened. And, we still have a long, long way to go to preserve our wealth. Over all those years the gold suppression cartel fought to hold down gold prices by selling gold, using derivatives and futures and in collaboration with good producers such as Barrick Gold and others. Hopefully HR3996 (HR-1207) will now pass unchanged and we can take a look at what the Fed and the Treasury were doing and who aided them.

What we are witnessing in the US and world economy is the result of the greed of central banks to make as much money as possible before they have to collapse the system to bring about World Government.

Manufacturing activity in the Federal Reserve Bank of Kansas City’s district improved in November.

by Henry Makow
Published: Dec. 01, 2009 – HenryMakow.com

Chelsea Clinton’s engagement today to Jewish banker  Marc Mezvinsky, who works for Goldman Sachs, is another reminder that America is ruled by the Illuminati clan, joined by marriage, money and love of Lucifer.

The source of their power is the Fed which has pilfered the US government’s credit card and used it to buy politicians and everything else worth owning, creating trillions in tax payer debt.

That money Ben Bernanke is throwing from the helicopter cost the Fed owners pennies but they expect the US taxpayer to refund face value. To be specific, the US National Debt is expected to reach $13 Trillion this year. That’s about $44,000 for every man, woman and child in the US.

Almost six Trillion will be owed to the private Illuminati families who own the banks that own the Fed. For fiscal 2009, US taxpayers will cough up $380 Billion in interest, half of that to the Fed. By 2019, the cost of servicing the debt is expected to reach more than $700 Billion annually.

As you all know, billions were paid to these banks during the “credit crunch” so that they may now reward their lackeys with humongous bonuses. But as Goldman Sachs CEO, Lloyd Blankfein said, they “are doing God’s work.”  Unfortunately, their God is Lucifer.

GUARDING THEIR ‘INDEPENDENCE’

Ben Shalom Bernanke has warned Congress not to interfere with the Fed’s “independence.” In a veiled threat, he said it would “seriously impair the prospects for economic and financial stability in the United States.” 

This is a reminder that the US is the Illuminati’s bitch, and should not get any other ideas, such as abolishing the Fed altogether and with it, six Trillion dollars in debt which they created out of thin air.

The American government is quite capable of accessing its own credit and creating its own currency.

The Illuminati bankers must be pleased with their investment in Barack Obama. The Federal government spent $3.5 Trillion during his first year in office, far exceeding any other first-year President. Of that $1.4 Trillion is deficit, and half of that is owed to guess whom.

The other half of the US debt is owed to countries like China, Russia, UK and Japan, oil producing countries, states, offshore banks, pension funds, insurance companies and mutual funds.

VAMPIRES

If its any comfort, in relation, the US is the world’s 20th largest debtor in proportion to GNP. In other words, the same Illuminati families have their teeth into many other countries.

For example, the US deficit is estimated to be 94% of GDP. In Germany it’s 178% ($63K per person); France is 236% (78K per person); and UK and Switzerland are %40% and 422% respectively ( $140K & $176 K per person.)

So you see, the Illuminati bankers have limitless wealth and all they lack is unlimited power, a problem which “world government” will address. Then, no Congress will even attempt the charade of challenging the Fed’s “independence.”

Source: http://www.henrymakow.com/half_of_us_debt_is_owed_to_fed.html

Related:

VIDEO – Preparing Americans for Hyperinflation

Ron Paul: Obama’s ‘goal’ is economic collapse…

The IMF Catapults From Shunned Agency to Global Central Bank

Bilderbergers want Global Currency Now

DOCUMENTARY – Fall Of The Republic by Alex Jones (Full Movie HQ)

USA Sick and Ready to Collapse for Three Reasons (With Video)

20 reasons America has lost its soul and collapse is inevitable (With Video)

VIDEO – The US National Debt Road Trip

DOCUMENTARY – Monopoly Men, Federal Reserve Fraud, 1999 (47 min.)

DOCUMENTARY – The Money Masters – How International Bankers Gained Control of America (210 min.)

The End of Money and the Future of Civilization

The Rich Have Stolen The Economy

Are You Ready for the Next Crisis?

Be Prepared for the Worst

UN Calls For Bank Of The World, New Global Currency

The Planned Global Economic Crisis

The Economic Crisis and What Must be Done

Who Are The Illuminati?

We Were The Watchmen On The Wall (working title)

This is a trailer for a video I have been working on for the last week. Although I intended to keep it under 10 minutes, it has now reached over 15 minutes with more to come. I hope to end it on about 30 minutes. Thefore it will not make YouTube as I do not want to split it up. Keep in mind that this trailer is an early work in progress, and some changes have been made even in this segment. that is why there have been no new blog posts in the last week. Thanks for dropping by. Stay tuned for the full video.

Richard C. Cook
November 29, 2009

The United States does not control its own destiny. Rather it is controlled by an international financial elite, of which the American branch works out of big New York banks like J.P. Morgan Chase, Wall Street investment firms such as Goldman Sachs, and the Federal Reserve System. They in turn control the White House, Congress, the military, the mass media, the intelligence agencies, both political parties, the universities, etc. No one can rise to the top in any of these institutions without the elite’s stamp of approval.

In 1971, President Richard Nixon removed the dollar’s gold peg.

This elite has been around since the nation began, becoming increasingly dominant as the 19th century progressed. A key date was passage of the National Banking Act of 1863, when the system was put into place whereby federal government debt was used to collateralize bank lending. Since then we’ve paid the freight through our taxes for bank control of the economy. The final nails in the coffin came with the passage of the Federal Reserve Act of 1913.

In 1929 the bankers plunged the nation into the Great Depression by constricting the money supply. With Franklin D. Roosevelt as president, the nation struggled through the decade of the 1930s but did not pull out of the Depression until the industrial explosion during World War II.

After the war came the Golden Age of the U.S. economy, when the working man, protected by strong labor unions, became a true partner in the prosperity of the industrial age. That era lasted a full generation. The bankers were largely spectators as Americans led the world in exports, standard of living, science and space exploration, and every measure of health, longevity, and culture.

Roosevelt had kept the bankers subservient to the interests of the economy at large. The Federal Reserve was part of the New Deal team, and interest rates were held at historic lows despite a large federal deficit. One main impact was the huge increase in home ownership. After World War II, the G.I. Bill allowed home ownership to grow further and millions of veterans to attend college. The influx of educated graduates led to productivity growth and the emergence of new high-tech industries.

But the bankers were laying their plans. In the early 1950s they got the government to agree to allow the Federal Reserve to escape its subservience to the U.S. Treasury Department and set interest rates on its own. Rates rose throughout the 1950s and 1960s. By the time of the interest rate hikes of 1968, the economy was slowing down. Both federal budget and trade deficits were beginning to replace the post-war surpluses. High interest rates were the likely cause.

In 1971, President Richard Nixon removed the dollar’s gold peg, allowing the huge inflation resulting from oil price increases that the international bankers engineered through control of U.S. foreign policy when Henry Kissinger was national security adviser and secretary of state. Nixon’s opening to China resulted in early agreements, also overseen by banking interests, to begin to transfer U.S. industry to overseas producers like China which had cheap labor costs.

By the mid-1970s, the U.S. had been taken over by a behind the scenes coup-d’etat that included events in 1963 when President John F. Kennedy was assassinated by a conspiracy that could only have been instigated by the highest levels of world financial control. In the election of 1976, David Rockefeller succeeded in placing fellow Trilateral Commission member Jimmy Carter in the White House, but Carter upset the banking community, thoroughly Zionist in orientation, by working toward peace in the Middle East and elsewhere.

I was working in the Carter White House in 1979-80. Unbeknownst to the president, Federal Reserve Chairman Paul Volcker, another Rockefeller protégé, suddenly raised interest rates to fight the inflation the bankers had caused by the OPEC oil price deals, and plunged the nation into recession. Carter was made to look weak and uninformed and was defeated in the election of 1980 by Republican candidate Ronald Reagan. It was through the “Reagan Revolution” that the regulatory controls over the banking industry were lifted, mainly in allowing the banks to use their fractional reserve privileges in making mortgage loans.

Volcker’s recession shattered American manufacturing and hastened the flight of jobs abroad. Under the “Reagan Doctrine,” the U.S. military embarked on an unprecedented mission of world conquest by attacking one small nation at a time, starting with Nicaragua. Global capitalism was also on the march, with the U.S. armed forces its own private police force. With the invasion of Iraq under George H.W. Bush in 1991, mainland Asia was revealed as the principle target.

The economy was floated by productivity gains through computer automation and a huge sell-off of assets through the merger-acquisition bubble of the late 1980s which ended in a recession. This resulted in the defeat of Bush by Bill Clinton in the election of 1992. Clinton was able to create another bubble through a strong dollar policy that attracted foreign capital.

The dot-com bubble that resulted lasted all the way through to the crash of December 2000. Meanwhile, the U.S. Air Force led the way in the destruction of the sovereign state of Yugoslavia, whereby the international bankers took over the resource wealth of the entire Balkan region, and the U.S. military gained forward bases for further incursions into Asia.

Do we need to say that none of this was ever voted on by the American electorate? But they bought into it nevertheless, both with their silence and through participation in a generally favorable job market in the emerging service occupations, particularly finance.

By the time George W. Bush was inaugurated president in January 2001, the U.S. was facing a disaster. $4 trillion in wealth had vanished when the dot.com bubble collapsed. NAFTA caused even more American manufacturing jobs to disappear abroad. The Neocons who were moving into key jobs in the Pentagon knew they would soon have new wars to fight in the Middle East, with invasion plans for Afghanistan and Iraq ready to be pulled off the shelf.

But the U.S. had no economic engine available to generate the tax revenues Bush would need for the planned wars. At this moment Chairman Alan Greenspan of the Federal Reserve stepped in. Over a two year period from 2001-2003 the Fed lowered interest rates by over 500 basis points. Meanwhile, the federal government removed all regulatory controls on mortgage lending, and the housing bubble was on. $4 trillion in new home loans were pumped into the economy, much of it through subprime loans borrowers could not afford.

The Fed began to put on the brakes in 2003, but the mighty work of re-floating a moribund economy had been accomplished. By late 2006 another recession loomed, but it would take two more years before the crisis of October 2008 brought the entire system down.

The impact on the job market was immediate and profound. By the time Barack Obama was elected president in November 2008, the U.S. was mired in seemingly endless wars in Afghanistan and Iraq, and the worst recession since the Great Depression was picking up speed. In order to prevent total disaster, the Bush administration ended its eight years of catastrophic misrule with a flourish, by allocating over $700 billion in financial system bailouts to cover the bad loans the banks had been making since Greenspan gave the housing bubble the green light.

It is now November 2009. Since Barack Obama was inaugurated in January, unemployment has soared from 7.9 percent to 10.2 percent. A few hundred billion dollars were allocated for “stimulus” purposes, but most of that went to pay unemployment benefits and to keep state and local governments from laying off more employees.

A fraction has been distributed for highway improvements, but largely through the bank bailouts the federal deficit has been running at an annual rate of $1.5 trillion, by far the largest in history, with the national debt now topping $12 trillion. Ironically, those Americans who still have productive jobs continue to grow in efficiency, with productivity up over five percent in the last year.

So much federal money has been spent that the Obama administration has been struggling to make its health care proposals budget-neutral through a raft of new taxes, fees, and penalties, and by announcing in recent days that the government’ first priority must now shift to deficit reduction. The word “austerity” has been mentioned for the first time since the Carter administration. Yet Congress voted $655 billion in military expenditures to continue fighting in the Middle East. A U.S. military attack on Iran, possibly in conjunction with Israel, would surprise no one.

So where do we now stand?

At present, the Federal Reserve is trying to prevent a total economic collapse. Interest rates are near-zero, to the chagrin of foreign investors in U.S. Treasury securities, and close to half of new Treasury debt instruments have been bought by the Federal Reserve itself as a way of providing free money for federal government expenditures.

But the U.S. economy shows no signs of coming back, with no economic driver emerging that could bring it back. For all the talk about alternative energy, there has been no significant growth of any home-grown industry that could possibly make up so much lost ground in either the short or the long-term.

The industries in the U.S. that are holding up are the military, including arms exports, universities that are attracting large numbers of students from abroad, especially China, and health care, especially for the aging baby boomer population. But the war industry produces nothing with a long-term economic benefit, and health care exists mainly to treat sick people, not produce anything new.

None of this provides a foundation that can bring about a restoration of prosperity to 300 million people when the jobs of making articles of consumption are increasingly scarce. On top of everything else, since government inevitably looks to its own requirements first, the total tax burden continues to increase to the point where the average employee now pays close to 50 percent of his or her income on taxes of all types, including federal and state income taxes, real estate taxes, payroll taxes, excise taxes, government fees, etc. Plus the cost of utilities continues to rise steadily and threatens to skyrocket if cap-and-trade legislation is passed.

The Obama administration has no plans to deal with any of this. They have projected a budget for 15 years hence that shows the budget deficit decreasing and tax revenues going way up, but it is all lies. They have no roadmap for getting us there and no plans for following the roadmap if it portrayed a realistic goal. And yet the U.S. military is still trying to conquer Asia. It is madness.

And it is madness because the big decisions are not made by the U.S., by Congress, or by the Obama administration. The U.S. has, for half-a-century, been marching to the tune played by the international financial elite, and this fact did not change with the election of 2008. The financiers have put the people of this nation $57 trillion in debt, according to the latest reports, counting debt at the federal, state, business, and household levels. Interest alone on this debt is over $3 trillion of a GDP of $14 trillion. Failure of our political leadership to deal with this tragedy over the past three decades is nothing less than treason.

But then again, at some point the decision was made that the U.S. and its population would be discarded by history, the economic status of the nation reduced to a shadow of what it once was, but that its military machine would be used for the financial elite’s takeover of the world until it is replaced by that of some other nation. All indications are that the next country up to bat as military enforcer for the financiers is China.

There you have it. That, in my opinion, is the past, present, and future of this nation in a nutshell. Great evils have been done in the world in the last century, and there is nothing anyone can do about it.

Except…. and that’s what each person caught up in these travesties must decide. What are you going to do about it?

In mulling over this question, it would be wise to recognize that the dominance of the financial elite has largely been exercised through their control of the international monetary system based on bank lending and government debt. Therefore it’s through the monetary system that change can and must be made.

The progressives are wrong to think the government should go deeper in debt to create more jobs. This will just create an even deeper hole of debt future generations will have to crawl out of.

Rather the key is monetary reform, whether at the local or national levels. People have lost control of their ability to earn a living. But change could be accomplished through sovereign control by people and nations of the monetary means of exchange.

This control has been stolen. It is time to take it back. One way would be for the federal government to make a relief payment to each adult of $1,000 a month until the crisis lifted. This money could be earmarked for goods and services produced within the U.S. and used to capitalize a new series of community development banks. I have called this the “Cook Plan.”

The plan could be funded through direct payment from a Treasury relief account without new taxes or government borrowing. The payments would be balanced on the credit side by GDP growth or be used by individuals to pay off debt. It would be direct government spending as was done with Greenbacks before and after the Civil War without significant inflation.

Another method increasingly being used within the U.S. today is local and regional credit clearing exchanges and the use of local currencies or “scrip.” Use of such currencies could be enhanced by legislation at the state and federal levels allowing these currencies to be used for payment of taxes and government fees as well as payment of mortgages and other forms of bank debt. The credit clearing exchanges could be organized as private non-profit regional currency co-operatives similar to credit unions.

These would be immediate emergency measures. In the longer run, sovereign control of money and credit must be returned to the public commons and treated as public utilities. This does not mean exclusive government control to replace bank control. As stated previously, it would be done in partnership between government and private trade exchanges. Nor does it mean government takeover of business, industry, or the banking system, though all should be regulated for the common good and fairly taxed.

This program would lead to a new monetary paradigm where money and credit would be available by, as, when, and where needed, to facilitate trade between and among legitimate producers of goods and services. In this way trade and commerce will come to serve human freedom, not diminish it as is done with today’s dysfunctional partnership between big government trillions of dollars in debt and big finance with the entire world in hock.

Such a change would be a true populist revolution.

Read more…

Well, to be fair, a former academic. The American magazine Foreign Policy has just declared the Chairman of the Federal Reserve, Ben Bernanke, to be number 1 in the list of the top 100 global thinkers. So here we have someone from a very definitely academic background who is certainly not neglected (with reference to my last post). Not only not neglected, his every sneeze has the potential to make or break currencies, taxes or interest rates.

Bernanke was appointed head of the ‘Fed’ in February 2006 by then President George W. Bush, and his term was renewed this year by Barack Obama. Prior to that he had been  Professor of Economics at Princeton University, and his special field had been the economics of the Great Depression – clearly an expertise that was to be become unexpectedly practical. In his role in the Fed he has not been without his detractors, but the majority view has been that he has shown exceptional skill as well as appropriate daring in the extraordinary global economic conditions we have been experiencing.

So if you are one of those academics fretting about being ignored by the public and policy-makers, take heart: Bernanke shows that you can still make it right to the top.

funny how banking was central to the whole WTO debate….kinda like our gov’t banking debates today…

note good ol Bob Rubin’s shout outs in the movie….

from : http://www.gregpalast.com/

Food for thought…

Gold run a reason to be wary of the stock market
Commentary: 10 years ago, everyone had lost interest in yellow metal

By Brett Arends, WSJ.com

BOSTON (MarketWatch) — The booming gold price is making me very nervous. About Wall Street.

Why? Because gold’s rocketing boom — it’s risen from around $260 an ounce about a decade ago to just under $1,200 now — is a vivid daily example of what a real bull market looks like.

History says that such massive bull markets — like equities from 1982 to 1999, or commodities in the ’70s or real estate from the mid-’90s to 2005 — usually start only after a big bear market ends.

Sounds like common sense, yes? Maybe even a banality.

But here’s the problem: Those holding a lot of stocks right now are taking a gamble that the big bear market on Wall Street, which began in 2000, ended earlier this year. They’re betting that the Dow Jones Industrial Average (INDEX:INDU) , now 10,309, won’t tumble again toward, or even below, the intraday low of 6,440 seen on March 9.

Are they right?

No one yet knows for certain. Looking back to early March, there certainly was a lot of panic and capitulation, which you usually see at a market bottom. People talked of a new “Great Depression.” One thing I noted at the time was that investors were shying away even from rock-solid defensive stocks with big, well-protected dividend yields. People weren’t just scared; they were petrified.

Continue reading…

here’s obama praising bob rubin’s hamilton project, a think tank that promoted lots of the CRAP phony-financing ideas that led to the 2008 collapse.

the more i follow this bob rubin-as-obama-economic figurehead…the more i think of bush getting tag-teamed by dick cheney, don rumsfield, and the other asshole neoconservatives that erronously took USA into Iraq….

the goldman sachs, crony-banking ties to obama will sink him in 2010 if he doesn’t drastically change course.

from : http://www.tinyrevolution.com/mt/archives/000867.html

The second episode of Max Keiser’s new show on Russia Today: “‘Keiser Report’ is a no holds barred look at the shocking scandals behind the global financial headlines. From the collusion between Wall Street and Capitol Hill to the latest banking crime wave, from bogus government economic statistics to rigged stock markets, nothing escapes the eye of Max Keiser, a former stockbroker, inventor of the virtual specialist technology and co-founder of the Hollywood Stock Exchange. With the help of Keiser’s co-host, Stacy Herbert, and guests from around the world, ‘Keiser Report’ tells you what is really going on in the global economy.” – 26 Nov 09 (26:19):

In this episode:

• Goldman Sachs’ extraordinary bailout to lending ratio and their going to bat against the ‘populist outrage’ against Treasury Secretary Timothy Geithner
• Jane Hamsher of Firedoglake on H.R. 1207, the Paul-Grayson ‘Audit the Fed’ bill
• The war profiteers of the corrupt U.S. Iraq and Afghanistan occupations with ‘zero oversight’ of the military industrial complex’ and the Obama Administration’s planned escalation in Afghanistan to ‘handle the money laundering’
• Ullrich Fichtner of Der Spiegel on Iraq, Afghanistan and A.I.G.

Since I wrote the 3-part piece about the dollar (parts I, II, III), some nasty things have occurred in Washington. It was just one-month ago that I made the following warning in “Part III: Can the Dollar Weaken Anyway?“

“Another very bad outcome for the dollar may happen if Congress starts dismantling the Fed’s independence”

Guess what? Since then, Rep. Ron Paul has pushed legislation which removes a certain amount of political independence from the Federal Reserve. Some of the legislation floating around (not just Paul’s) specifically involves changes to how the FOMC members are chosen. By way of explanation, the Federal Open Market Committee (FOMC) is the body within the Fed system that determines monetary policy. The 12-member FOMC is composed of the 7-member Board of Governors and 5 of the 12 regional Fed bank presidents.

Here is where it gets a little tricky. The Board of Governors oversees the entire Fed system. It’s 7 members are appointed by the President and confirmed by the Senate- a political process. In conjunction with the 5 rotating regional presidents, they compose the FOMC. The 12 regional Fed banks each have a 9-member board of which 3 are chosen by the Board of Governors and 6 by the region’s member banks. That’s right, the regional bank boards are two thirds chosen by the member banks- a nonpolitical process. Ultimately, you should reasonably end up with 7 politically chosen FOMC members and 5 industry chosen members. Given the terms of appointments, this provides a nice balance of power not usually subject to the whim of Washington. Pretty slick mechanism for balancing power huh?

This is not a mechanism that needs to be tinkered with. Political independence is key. Could Paul Volcker have raised interest rates to levels high enough to break the inflationary spiral in the early 1980’s? Would interest rates remain low in election years only to be hiked after? Could politicians really be expected to prescribe the tough medicine of high real interest rates and a slow economy (even possibly recession) required to control inflation? Consider the following analysis “Central Bank Independence and Macroeconomic Performance: Some Comparative Evidence” by Alisna and Summers (1993) (yes, that is the Lawrence Summers):

If there is one thing Congress has certainly proved, it is its ability and willingness to be consistently fiscally irresponsible. That much you can count on. Such populist legislation is a definite negative for the dollar. How it plays out remains to be seen though.

Ever since its creation in 1913, the Federal Reserve has grappled with a daunting political contradiction. The Fed is charged with preventing the collapse of the banking and financial system, whose health is essential for the “real economy” of production and jobs. But financial bailouts usually occur when mistakes or misdeeds by bankers and investment professionals make them public pariahs. To do its job, then, the Fed protects — or seems to protect — an unpopular, disgraced and undeserving group. We are now witnessing this contradiction in full bloom.

The Fed has become a congressional scapegoat for assorted economic frustrations: 10.2 percent unemployment; expensive rescues of fragile financial institutions (AIG, Bear Stearns, Citigroup); outsize Wall Street bonuses; and the crisis itself. The denunciations transcend rhetorical outbursts. The House Financial Services Committee recently voted to require the Government Accountability Office (GAO) to “audit” the Fed’s monetary policy — its efforts to influence interest rates and credit conditions. In the Senate, Christopher Dodd, chairman of the Banking Committee, has proposed stripping the Fed of all powers to regulate financial institutions — its actions to police lending and management practices. These powers would go to a new agency.

The Fed backlash is bipartisan. Rep. Ron Paul, a Republican and libertarian, proposed the GAO audit, which he sees as a first step toward abolishing the Fed (“End the Fed” is his latest book). Paul favors resurrecting the gold standard and combining it with private money; Wal-Mart could issue currency. His views are long-standing, principled — and wholly impractical. Dodd, of course, is a Democrat. Much Fed-bashing simply indulges Congress’s impulse to blame someone else for anything unpleasant.

Lost in this politically charged climate is the reality that the Fed, more than any other government agency, arguably stopped last fall’s financial panic from becoming a global depression. The Fed pumped out more than $1 trillion in new credit, created special lending programs to support faltering segments of the credit markets (commercial paper, money market funds) and rescued financial institutions, notably AIG, whose bankruptcy might have triggered a chain reaction of failures. These were seat-of-the-pants responses, taken in the midst of crisis and pervasive uncertainty. We will never know what might have happened without them. The second-guessing is occurring now when there’s less fear and more information.

What’s also overlooked is that the Fed isn’t the super-secretive, unaccountable agency of political stereotype. In 2009, Fed officials from Chairman Ben Bernanke on down have testified 32 times before congressional committees. The Fed makes detailed disclosures about its policies. After every meeting, the Federal Open Market Committee (FOMC), the key decision-making body on monetary policy, issues a statement explaining why it has — or hasn’t — changed its interest-rate target. Until 1994, there were no announcements after FOMC meetings. Economists and investors had to guess.

Contrary to conventional wisdom, the Fed’s activities are already widely audited. Deloitte & Touche examines the Fed’s financial statements, which are published. The GAO can audit many Fed activities, including its banking regulation and supervision of the payments system. What it’s barred from auditing is the conduct of monetary policy, including relations with foreign central banks such as the European Central Bank.

Congress has so far sensibly put this off limits. “Audit” has a different meaning in the context of the GAO than in everyday usage. It means examine, investigate, evaluate and, often, criticize. It’s not just crunching numbers. The GAO usually undertakes studies at the request of someone in Congress. This suggests that the GAO could be used to influence or intimidate the Fed through selective investigations, which would involve access to internal Fed documents and interviews with policymakers. The Fed might be pressured to finance government deficits or to adopt an “undue focus on the short term,” Vice Chairman Donald Kohn testified before Congress on July 9. Historically, similar pressures have caused other central banks to unleash inflationary torrents of money, Kohn said.

This is not inevitable, but even the impression that the Fed’s “independence” is compromised could perversely undermine confidence in the dollar, leading to higher market interest rates or a rapid fall in the dollar’s foreign exchange value. Massive projected government budget deficits compound the psychological damage. Similar objections apply to Dodd’s proposal to end the Fed’s power to examine and regulate financial institutions. If this crisis teaches anything, it is that the Fed needs to know more — not less — about large financial institutions.

The Fed isn’t infallible. Its mistakes contributed to the crisis. Its present low-interest-rate policy poses dangers of fostering inflation or new “asset bubbles.” But the congressional Fed-bashing poses greater dangers. Ironically, the destructive remedies being peddled are part of “financial reform” legislation. If this is “reform,” we’re better off without it.

Robert J. Samuelson, Washington Post

__________

Full article: http://www.washingtonpost.com/wp-dyn/content/article/2009/11/29/AR2009112902012.html

Senator Bernie Sanders (I-VT) “said on Sunday he will not vote to reconfirm Ben Bernanke as chairman of the Federal Reserve, in a preview of the rough treatment Bernanke may get this week on Capitol Hill,” Capitol Hill Blue reports.

The open opposition of Sanders, an independent outside the political mainstream, is unlikely alone to derail Bernanke’s renomination. But it reflects the Fed’s challenges.

"I absolutely will not vote for Mr. Bernanke. He is part of the problem," Sanders said on ABC’s "This Week" TV program.

Bernanke "didn’t … do anything to prevent us from sinking into this disaster that Wall Street caused and which he was a part of," Sanders said, referring to last year’s severe financial crisis and the deep recession that followed.

The central bank chief “will testify on Thursday before the Senate Banking Committee at a hearing on his nomination to a second four-year term.”

(credit image – getty)

Many officials and experts have warned of violence stemming from the economic crash.

The head of the International Monetary Fund, Dominique Strauss-Kahn, is now warningthat there might be a revolution if some countries if governments hand out another round of bailouts to the financial sector:

The public will not bail out the financial services sector for a second time if another global crisis blows up in four or five years time, the managing-director of the International Monetary Fund warned this morning.

Dominique Strauss-Kahn told the CBI annual conference of business leaders thatanother huge call on public finances by the financial services sector would not be tolerated by the “man in the street” and could even threaten democracy.

“Most advanced economies will not accept any more [bailouts]…The political reaction will be very strong, putting some democracies at risk,” he told delegates.

Truth11 comment. The IMF is positioning for takeover.  Bailing out the economy is not the answer.  As we always have known. But to complete their plan, they need to dump the Feds  pyramid scheme. They need us to just switch over to them.  They will make it seem an easy way out.  Most traps are set this way.