- 1. The time has come for swift and decisive action by
Congress to pull the charter of the Federal Reserve Bank and thereby shut
down the principle institution responsible for the British subversion of
our sovereign credit and currency.
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- 2. Only the Fed, alone among the world's private central
banks, has the power to utter national currency, without approval of the
elected government; this is in total violation of the Constitutionally
defined process for the utterance of credit and currency, the which power
is given to the US Treasury, acting with the approval on the Congress.
It does not matter that a treasonous government (the Wilson Administration)
and treasonous elements of the Congress passed in 1913 the legislation
drafted by the Morgan interests and British allied Jacob Schiff creating
and chartering the Fed and vesting it with these powers; without an amendment
sent by the Congress for the approval of the states, the which would never
have been passed, Congress does not have the power to grant powers given
to it by the Constitution to a private central bank. As many people have
correctly argued from it inception, forward, the Federal Reserve Act is
unconstitutional.
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- 3. The Fed and its chairman, Ben Bernanke, are now using
this unconstitutional power to utter Federal Reserve fiat money in stupendous
amounts, in an effort to bailout a hopelessly bankrupt national and global
banking system. These actions will bankrupt this country and do great harm
to our people, leading to a hyperinflationary explosion, as many leading
economists, including Lyndon LaRouche, have warned. The Fed took such actions,
with the approval of British puppet in the White House, Barak Obama, and
with full knowledge that such actions would not be approved, if they were
fully understood, by either the American people or their elected Congress.
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- 4. While the scale of the bailout, which, since the outbreak
of the most recent round of financial crisis, is at least several trillions
of dollars utterance of Fed ``monopoly money,'' this corrupt and insane
activity is dwarfed by a Fed-run and fully sanctioned ponzi scheme, involving
the sale and resale worthless mortgage backed securities, which implicitly
places the US government and American taxpayer on the line to underwrite
the value of the entire multi-quadrillion dollar derivatives market.
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- 5. According to several well placed Wall Street sources,
the scheme works as follow: In seeking to calm panicky markets, who correctly
fear the impending collapse of several major financial institutions, the
Fed announced a new round of so-called quantitative easing (large scale
Open Market operations that will place ultimately more than a trillion
dollars in non-borrowed accounts in member banks, supposedly freeing up
a much larger amount that could be used for other activities including
new speculation and settling of accounts, etc. That much, for political
and other purposes, has been widely reported, especially immediately before
and after the most recent meeting of the Fed's Open Markets Ctte. However,
sources report that this is only one side the Fed scam. The Fed is also
``selling'' a large chunk its portfolio of toxic MBS, originally taken
in as collateral for bank loans and as purchases to take this bad debt
off the books of bankrupt banks-they are re-selling this debt back to banks,
at or near their notional values, despite the fact there is no market for
this financial sewage. The Fed has already ``sold'' more than $400 billion
of this crap since September, with the banks using the money they are being
given by the Fed to purchase it!
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- 5. With the Fed making the only effective market for
the MBS, they are effectively underwriting the value of this entire pile
of worthless financial paper, along with the daisy chain of derivatives
contracts linked to them. As one source put it, if the MBS market later
blows up, as it must, everyone holding them will run to the Fed demanding
that it make good on their financial paper at the value of the sales the
Fed made. If the Fed doesn't make good by printing money to cover this,
then it will effectively be admitting that it committed securities fraud
in selling worthless paper that it knew to be worthless.
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- 6. As these actions, and the entire process of the bailout
should make clear, the system would have already collapsed in a very visible
heap, were it not for the actions of the Fed, specifically its massive
hyperinflationary money printing policies in which it serves as the Brits
``magic money'' machine. Conversely, if we shut the Fed down, this puts
a stake in their heart of the Brits global financial operations.
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- 7. Up until the recent election cycle, anti-Fed sentiment
was routinely voiced by many on the left, as well as from certain of the
tea party and libertarian types, including both Ron and Rand Paul.
- Despite some clear efforts to manipulate results through
the way questions were asked, polls showed widespread distrust and even
hatred of the Fed within the general population, regardless of whether
the respondents favored ``donkeys'' or ``elephants.'' However, hardly a
mention was made of the Fed and its policies during the election campaign.
Asked whether the Fed and Bernanke feared a popular outcry, a knowledgeable
source said they were always afraid and slept with ``one eye open.'' But
he said, as things have turned out, the Fed appears less afraid of the
new Congress than one might have expected. He stated that some of the Fed's
toughest critics were gone (eg, Russ Feingold and he expected soon, Charlie
Rangel) while people like Rand Paul are now more concerned with slashing
the budget and entitlements-something where they will find common ground
with the Fed. The source said that various people from Wall Street have
already talked to Paul and his dad about their support for their message
of smaller government and balanced budgets.
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- 8. The Fed may be in trouble on another, related flank
as well. Last year, the Fed went on an all mobilization to stymie legislation
that demanded regular and public audits of the Fed's books and activities;
this was viewed by some in Congress, as important, in that the Fed no longer
supplied timely figures on the nation's money supply. However, some sources
have pointed out that what was really worrying the Fed was that such an
audit, if fairly conducted, would have revealed the real size of its holdings
of toxic waste, the which is itself prohibited by its own charter, which
specifies that the Fed can purchase and hold bonds and securities of only
the highest rating.
- For some time, and especially since October 2008, the
Fed has been buying worthless securities at an alarming pace; the low end
estimate of these holdings before recent sales was approximately $1.5 trillion
in notional value (since they have no {real} value, the price for they
were purchased or exchanged becomes the ``real'' value); the higher estimates
are between 2 and three trillion dollars, which would mean that the Fed
holds in its portfolios more of this junk than US debt! How these purchases
were and are authorized remains somewhat puzzling, since there has been
no clear restatement or amendment of its charter prohibition against such
holdings. There is one report that they were conducted under a still secret
Bush era national security directive issued in the wake of 9/11 that gave
the President the right to take whatever actions he deemed necessary to
protect the integrity and functioning of the financial markets; this was
supposed used by the White House and then invoked again by Obama. There
are other reports that purchases/exchanges were authorized in legislation
that created the so-called TARP.
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- 9. All of this leaves the Fed in its most vulnerable
political position in decades, possibly since the moment that FDR decided
against its nationalization in 1933 (see my previous report). Decades
of subsequent mass brainwashing about the role of the ``independent'' Fed
in preserving our financial stability have gone up in smoke in this present
crisis; few people, if any, believe that Fed plays a positive role or have
faith that its chairman, ``Helicopter Ben,'' knows what he is doing. It
is sitting out on a political and financial limb, awaiting some sane people
to saw it off.
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- 10. We should push now, and hard, for the end of the
Fed and its treasonous activity of functioning as piggy bank for the British
empire's Wall Street and other financial interests, debasing our currency,
and setting in motion a chain-reaction hyperinflationary explosion, and
for its replacement with a Hamiltonian National Bank as the lynchpin of
a new credit distribution system. Merely opening this attack, along with
our continued insistence on the re-imposition of the Glass Steagall, should
have an effect on bringing a halt to the Fed's illegal ponzi scheme bailout.
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