COMMENT: Hi AE….just an observation for you. Altho’ you have mentioned your disagreement with the points of view of such people as Ed Griffin (The Creature From J Island), Ron Paul (End The Fed), & Jeff Berwick (current best seller is Controlled Demo of The US), all of you are in agreement about the total & utter corruption of the US, & other, gov’ts. I would say further that it seems it took you longer to get there than the others, in realizing the depth of the problem, not wanting to use the conspiracy word. So…big picture, you’re all in agreement, but the details cause disagreement. I think your “defense” of the existence of the Fed doesn’t really matter, as there’s not gonna be any Fed, or anything like it, after the civil war has run its course. Just my thoughts, not a personal attack. Absolutely LOVE your blog….am hooked, like an addict.
REPLY: Where I disagree with these ideas that the central banks are the enemy is that they are the scapegoats for the real problem has been the fiscal side — politics. These scenarios have focused on the fact that the Fed was originally set up as a bailout structure for banks to replicate what J.P. Morgan did to save the banking system in 1907. I pointed out that the “elastic money” the Fed was allowed to create from the outset was to allow them to buy-in corporate short-term paper when banks would not lend.
Then came World War I. In order to fight the war, Congress needed to create debt. They instructed the Federal Reserve to STOP buying corporate debt, being the lender of last resort, and buy government debt. Following the war, they never returned the Fed to its original purpose.
Still, each branch was independent because what was discovered from the Panic of 1907 was that the San Francisco Earthquake of 1906 sucked in money from the rest of the country, leaving a shortage of cash in New York, resulting in bank runs. Therefore, the structure realized that we may have been one nation, but we were not one economy. The dominant economic condition is one region was agriculture, another energy, and another manufacture, and still another finance. Thus, each region got a branch of the Federal Reserve and each was independent so interest rates would differ to attract or deflect internal capital flows. While they no longer bought private debt to “stimulate” the economy only government, they did still retain their independence with interest rates.
Then comes along Roosevelt. He completely changed the structure of the nation to introduce socialism he called the New Deal. He did not stop with work programs, relief funds, and creating agency after agency like the SEC, he completely changed the Federal Reserve. Where the banks did nominate the board in their respective regions, now the government nominated board members instead of the banks and he usurped the interest rates and folded them into one interest rate to serve the entire nation. Roosevelt changed the Fed from managing the economy on a domestic level and shifted it to international. The entire purpose of the Federal Reserve was now totally eradicated.
When World War II came, Congress usurped even the Federal Reserve power to create elastic money. They ordered the Federal Reserve to support the government debt to prevent interest rates from rising during the war. They attempted to keep that power and it is the ONLY time that the Federal Reserve rebelled. President Truman announced that the Fed would comply with his decree, and they only denied any such agreement. The Fed rejected the idea of continuing to support the government debt market in the face of the Korean War and asserted its independence. I have covered all of this in “Manipulating the World Economy.”
So while the conspiracy theories continue to paint the Federal Reserve as the enemy, this has been a total distraction and misinformation. They will no longer bail out the banks. Last March, the Fed began to lend on commercial paper for the first time since its origin in 1913, and the Federal Reserve is moving rapidly to accept direct deposits from institutions, thereby circumventing the banks altogether (see IMF; so much for the conspiracy theories that the bankers control the Fed).
So all these claims that the bankers are in charge of the Federal Reserve are just bogus. They keep looking at the structure that the bankers were the shareholders in 1913, which was because bailing out the banks was not to involve taxpayer money. It was to mimic what J.P. Morgan did, and the government never handed him a bailout to do it.
As for my “recent” conspiracy explanation, this is by NO MEANS the same flavor that has been spinning around. The real source is coming from the World Econo0mic Forum — not from the central bankers. Schwab has cleverly taken control of most Western governments. Just look at who is the head of the ECB, IMF, and the EU itself. All have been or still are board members of the WEF.
This “Build Back Better” is a marketing slogan coming out of the WEF and just look at all the world leaders using the very same phrase. Johnson’s father worked at the Rockefeller Foundation, which was also linked to Gates’ father, and they both want to reduce the population of the world. If they do it with vaccines and policies instead of guns, then it is not genocide or a war crime.
Biden’s Climate Czar is a Davos boy of Schwab. Biden has a free reign, and the left press is trying to shut down all alternatives. They were even telling cable networks to dump Fox News. Why is free speech gone? Because they have an agenda and they are pushing forward at light speed, and like any communist revolution, you control the press to win the day.
Meanwhile, Washington will retain at least 5,000 troops into March, but the talk is they will remain until June. Biden has signed a lot of executive orders, but what people are not paying any attention to is that he has already sent troops to Syria, and he is not making the same mistake as Obama by asking permission from Congress. In addition, suddenly, Iran is just weeks away from having a nuclear weapon, which seems to be very convenient since they have been trying for more than 40 years to accomplish that one. They claim they need the troops in Washington because of Trump’s Impeachment Trial. Was this absurd unconstitutional impeachment trial that even the Chief Justice refused to attend because he is not a president, just another ploy to militarize Washington against the threat of revolution?
The central bankers are not the problem. They do not have the tanks, guns, or the incentive even to control the world, end capitalism, and extinguish 50% of the population to save the planet. Just follow the clues. We do not need conspiracy theories, for Schwab’s agenda is fully in the open. However, people do not realize is that their intent is to ELIMINATE democracy, for we are the great unwashed and too stupid to understand the big picture.
So they all meet in Davos and kiss the ring of Schwab and push his agenda to eliminate democracy. Anyone who thinks the 2020 election had zero fraud should go kiss the feet of Schwab and off your children to sacrifice, handing them over to be indoctrinated in this new modern version of the Brown Shirts. He takes his lessons from history as well. I never kissed his ring. I only shook his hand. So that does not make me a Davos Man.