The Elitists are Destroying America while Congress does Nothing!

Here's what the elitist psychopaths have managed to destroy so far!

• They have destroyed the real estate industry and have put millions of people out of work.
• They have caused a faltering U.S. economy.
• They have created an insane national debt with an equally insane trade deficit transforming America from the world's greatest creditor nation to the world's greatest debtor nation within the space of one single solitary decade.
• They have driven oil to levels that will decimate the entire world economy despite abundant domestic reserves of oil.
• They have created hundreds of trillions in derivatives that have virtually no collateralization, thus threatening the entire world financial system.
• They have inflated American's out of their wealth. Now there is very little left to spend to drive the U.S. economy.
• They have created the perfect financial storm which will suck America into a catastrophic hyperinflationary recession followed by a deflationary depression the likes of which have never been seen before in the entire history of the U.S.
• They have created trillions upon trillions in entitlements that cannot be possibly paid without reducing all of your benefits or drastically increasing your taxes.
• They have perpetrated one fraudulent financial scheme after another creating a credit crunch that threatens to annihilate bank capital.
• They have caused the price of food to skyrocket in America and food riots to break out around the globe while giant "agro-corporations" are earning record profits.
• They have plans to nationalize all the financial losses caused by Wall Street fraud and then put the Fed, and not the Government, in charge of the entire U.S. financial system when in fact their buddies at the Fed have been the root cause of virtually every problem in the American financial system!!!

This is the monster which both the domestic and global elitists have created. My hope is that their monster eats them alive. Yesterday would not be soon enough.

Here's the Garden Path that the Financial Psycopaths on Wall Street have been Leading you Down!

Banks and mortgage brokers have been "sucking" people into ARM's (Adjustable Rate Mortgages)

Unaffordable rate resets on ARM's and declining home values lead to mortgage defaults.

Which lead to the erosion of collatoral values on mortgage-backed derivatives.

Which lead to asset devaluations.

Which lead to bank insolvencies.

Which lead to the tightening of credit and increased interest rates to remove and compensate for increased risk.

Which leads to a decrease in home demand because of fewer qualified buyers and higher loan costs.

Which leads to current homeowners who are now unable to trade-up.

Which leads to declines in new homebuilding.

Which leads to job loss in the building trades and businesses which supply homebuilders.

Which reduces wages.

Which reduces consumer demand.

Which fuels a recession.

Which causes the Fed to now lower interest rates.

Which causes the Fed to expand the money supply and credit availability to avoid a recession.

Which causes inflation as money supply expands.

Which causes an erosion of wages and buying power.

Which causes a further reduction in consumer demand and spending.

Which causes a further reduction of qualified home buyers.

Which causes a further reduction in the demand for housing.

Which causes a further erosion of real estate values.

Which causes a deeper recession.

Which causes the Fed to further expand the money supply.

Which causes the interest rate to be lowered even more.

Which causes even greater inflation.

Which causes the Fed to now raise interest rates to stop the economy from totally imploding.

Which causes the cost of business to drastically increase.

Which causes corporate profits to be drastically reduced.

Which causes the cost of home ownership to drastically increase.

Which causes further reductions of real estate values.

Which causes increased loan defaults.

Which causes the recession to deepen.

Which causes the stock markets to crash and burn.

In my opinion, the War on Financial Terror should be fought right now against the psycopaths on Wall Street, the dishonest brokers, bankers, credit rating agencies, the political eunuchs in Washington and against the SCAM known as the Federal Reserve.

For it has been through the nefarious actions of these people, that the U.S. and large parts of the world, will be propelled into the greatest economic depression that the world has ever seen.

Hold your Noses, Here Comes the Fed Again!

The J.P Morgan Chase buyout of Bear Stearns stinks to high Heaven .... here's why!

• The Fed says that Bear Stearns (BS) was headed for bankruptcy. How strange that Bear's officers and directors received billions of dollars in bonuses just before the sale to J.P. Morgan (JPM) ... what's that strange smell?
• Then the Fed announces that they were going to open the discount window to Goldman, Lehman, Morgan and others. But guess what? Nobody at the Fed bothered t0 tell BS ... that strange smell is getting stronger!
• If BS was about to get vaporized, why didn't the Fed offer the $30 million dollars directly to BS as opposed to backing JPM's purchase of BS for a pittance? The straight answer is that the Fed wanted BS to go down! .... that strange smell is now becoming overpowering.
• New York Stock Exchange rules supposedly prevent any one from buying more than 20% of a company without a shareholder vote. JPM bought 39.5% of BS without bothering to talk to the shareholders ... now that strange smell has become a stench which is wafting towards the Heavens.
• The Fed overstepped its legal boundaries .... what else is new! It did not provide liquidity to the banking system, but rather, it went far beyond that by putting up a $30 billion dollar non recourse loan to JPM to ensure the solvency of a non-bank entity. Bear Stearns is not a bank. It's an investment (excuse me while I guffaw) bank.... the stench is almost at the Pearly Gates.
• FYI...FYI...FYI...FYI... J.P. Morgan is the Federal Reserves largest SHAREHOLDER!!!! Oh my, you don't think that there could be any connection here do you?
• As I have documented in my previous posts, the Fed is neither Federal nor a Reserve ... it is in fact the biggest scam of all time! .... now their stench has definately risen higher than Heaven itself.

Some News about Goldman Sachs, Morgan Stanley, Bear Stearns and J.P. Morgan Chase

In February 2008 Goldman Sachs, Morgan Stanley and Bear Stearns were under investigation by the FBI and the SEC, as well as by the states of New York and Connecticut in the default of mortgage-backed bonds.

They are looking for criminal activity and insider trading in the packaging of subprime loans as securities.

Meanwhile the rumor persists on Wall Street and in Frankfurt, London and Paris that J.P. Morgan Chase has a $4Billion dollar loss on a derivatives trade coming very soon.

Now J.P Morgan Chase pays $2 a share ($270 million) to buy all of Bear Stearns - less than one-tenth the firm's market price on Friday. Only a year ago, Bear's shares sold for $170. The sale price includes Bear Stearn's soaring Madison Avenue headquarters.

The deal for Bear was done at the behest of the Fed and Treasury Department with the Fed approving a $30 billion credit line to help J.P. Morgan do the deal for the troubled firm, which was driven to the brink of bankruptcy by what amounted to a run on the bank.

Isn't it interesting that the Fed, which is a privately owned corporation (see my series: The Federal Reserve is neither Federal nor a Reserve. It is one of the Greatest Scams of Alltime!) was created by 7 men in 1910 at a highly secret meeting on Jekyll Island. Two of these men were; Henry Davison, senior partner of J.P. Morgan Company and Benjamin Strong, head of J.P. Morgan's Banker's Trust who 3 years later became the first head of the Federal Reserve System.

The Vast Majority of American's have Never Legally Owed a Dime in Federal Income Taxes!

In doing my research on the SCAM that is the FED, I spent a lot of my time reading the U.S. Federal Income Tax Act ... yes, I'm in desperate need of a life!

Why? Because, as I have already stated, it is the American taxpayer who is the guarantor of the American debt, a debt which is owned by the Fed and by foreign governments.

After you sift through all of the mumbo-jumbo of government-speak the truth, as it will always do, becomes crystal clear and self-evident. After all the truth is the truth!

The Constitution allows Congress to impose a limited, perfectly Constitutional Tax, on income derived from commerce with foreign nations, nonresident aliens, foreign corporations, and in certain cases, citizens and domestic corporations deriving income from sources within possessions of the United States, places like Guam and Puerto Rico. [(26CFR&39.22(a)-1 (1956)]

Over several decades of regulations and ammendments nowhere in the Constitution of the United States is there a provision for domestic income tax to be levied on American citizens by the Federal government. It simply is not and has never been within their pervue!

The well over one trillion dollars ($1,000,000,000,000) of income tax which American's pay each and every year to their government is the largest financial fraud in history. Remember, Congress started dipping their hands into your pockets a few month's following the establishment of the Federal Reserve System. (check-out my previous posts on this subject).

Albert Einstein said that the highest form of arrogance is "condemnation before investigation." So before you dismiss the Cantankerous One as some kind of conspiracy wing-nut, DARE TO FOLLOW the EVIDENCE with an open mind, wherever the evidence may lead. Evidence will eventually lead to the truth and the truth will speak for itself!

What you do or not do with the truth is completely up to you!

PS: Here is an extremely informative web site which will take you through the tax system in a concise and easy to understand manner. I think that you will find "Taxable Income (The Evolution of Deception), a deciphering of the Federal Income Tax Act to be more than a little disturbing.
http://www.theft-by-deception.com/TaxableIncome2007.pdf

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 11: Right From the Horse's Mouth

Here is a quote from Page 2 of Modern Money Mechanics, a publication of the Federal Reserve Bank of Chicago:

"The actual process of money creation takes place in the banks."

Subsequent to that, a quote from Page 8 of Philadelphia's The National Debt, which is also a Federal Reserve Bank publication:

"The Federal Government, with the cooperation of the Federal Reserve, has the inherent power to create money - almost any amount of it. This power makes technical bankruptcy out of the question."

Federal Reserve member banks are protected from any risk of bankruptcy. Just by keeping a 10% reserve rate in the bank's Federal Reserve Account they are allowed to loan more money than they have. For example, a $10,000 "deposit" allows the bank to lend $90,000 which it does not have and still remain protected.

How? The American public protects the banks from bankruptcy by paying higher prices for goods and services should the Fed have to dilute the money supply by printing sufficient money to prevent the bankruptcy of a bank.

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 7: How the Fed Works - the Fed Controls the Government and
Not the other way around!

"Allow me to control the issue and the nation's money and I care not who makes its laws."
Amshell Rothschild


The Federal Reserve Bank is a private corporation. Black's Law Dictionary defines the Federal Reserve System as:

"Network of 12 banks to which most national banks belong and to which state chartered banks may belong. Membership rules require investment of stock and minimum reserves."

In the case of Lewis v United States, Federal Reporter, 2nd Series, Vol 680, Pages 1239, 1241 (1982) the court said:

"Each Federal Reserve Bank is a seperate corporation owned by commercial banks in its region. The stock-holding commercial banks elect two thirds of each bank's nine member board of directors."

In Black's Law Dictionary we find that these privately owned banks actually issue money.

"Federal Reserve Act Law which created Federal Reserve Banks which act as agents in maintaining money reserves, issuing money in the form of bank notes, lending money to banks, and supervising banks."

The privately owned Fed actually creates and issues the "money" we use. In 1964, the House Committee on Banking and Currency, subcommittee on Domestic Finance, at the second session of the 88th Congress, put out a study entitled Money Facts which contains this description of what the Fed is:

"The Federal Reserve is a total money-making machine. It can issue money or checks. And it never has a problem of making its checks good because it can obtain the $5 and $10 dollar bills necessary to cover its check simply by asking the Treasury Department's Bureau of Engraving to print them."

Article 1, Section 8 of the Constitution states that only Congress shall have the power to coin (create) money and regulate the value thereof.

Today however it's the Fed, a privately owned company, which creates and profits by printing money through the Treasury and regulates its value.

Clearly it was Congress on December 22. 1913 who illegally gave the Fed the right to print money through the Treasury ... it was President Wilson who signed it into law on the following day, clearly and directly violating Article 1, Section 8 of the United States Constitution.

Why were the members of Congress supporting this law not charged with treason? Why was President Wilson not impeached and also charged with treason? Why are all members of government from 1913 untill today who have not worked to repeal this law not charged with treason? Is it not their sworn duty to uphold the Constitution of the United States?

The Fed creates money "out of thin air" whenever it benefits them and loans it back to us the people through banks and charges interest on our own money!

The Fed also buys government debt with money they themselves have printed and charges government interest. This money is repaid to the Fed through the government charging us income tax. IS THIS NOT FRAUD?

On June 10, 1930 Louis T. McFadden (R.Pa.), former President of the First National Bank in Canton Ohio, and for 12 years the Chairman of the House Banking Committee described the Fed in the Congressional Record, House Pages 1295 and 1296 as follows:

"Mr. Chairman, we have in this country one of the most corrupt organizations the world has ever known. I refer to the Federal Reserve Banks. The Federal Reserve has cheated the Government of the United States and the people of the United States out of enough money to pay the entire national debt."

Rep. McFadden went on to say, "Every effort has been made by the federal Reserve to conceal its power but the truth is the Federal Reserve has USURPED THE GOVERNMENT OF THE UNITED STATES! IT CONTROLS EVERYTHING HERE AND IT CONTROLS ALL OUR FOREIGN RELATIONS. IT MAKES AND BREAKS GOVERNMENTS AT WILL!

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 7: How the Fed Works

The Federal Reserve System, although it makes itself to appear as though it's a government operation of some kind, is in reality a cartel of privately owned banks who are protected by law, and who are in Partnership with the Government.

Here's how it works! Everything starts with the government side of the partnership. As we know all too well, government always spends more money than it has, hence they're perpetualy living in an ever-increasing deficit world.

Let's say that Congress, in its always questionable wisdom, has decided that it needs an extra billion dollars to spend on something or another. So they walk down the street to the Treasury and ask for the money. The Treasury says, "no can do boys, the cupboard is bare." Oh no ... what to do?

So then the Congress and the Treasury walk further down the street to the printing office and run-off a stack of certificates that say either "U.S. Government Bond" or "Note" or "Bill" depending on what the maturity date is going to be.

Then they offer these certificates to the private sector hoping that people will buy them, in effect loaning the government the money that it needs.

Investment advisors will then tell you that these certificates are the most sound investment that you can make because they are "backed by the full faith and credit of the U.S. Government." Uhhuh .... the same government which didn't have the money in the first place and is floating in a sea of seriously mounting debts.

Full faith and credit of the U.S. government means that the government swears on a stack of Bibles that you will get your money back with the promised rate of interest even if they have to tax you to death to raise the money.

All of the certificates have been sold but the government still needs more money. So they now walk past the printing office to the Federal Reserve building, where an officer of the Fed pulls out a checkbook and writes a check to the U.S. Treasury for a billion dollars with no questions asked.

Question ... where did the Fed get the billion doillars to give to the Treasury when in fact there is NO MONEY in the account at the Federal Reserve and technically there isn't even a Federal Reserve account?

The answer is simple. The billion dollars "is created" the instant that the officer at the Fed signs the check. It's called "monetizing the debt."

The government is a willing partner in this SCAM because they can get instant access to any amount of money, at any time, from the bankers without having to go to you as the taxpayer. Without this "shell game" known as the Fed, the government would have to go to you directly for funds through increased taxation every single time they needed money (we'll expand on that later). That would most certainly upset you and if there is one thing that the dunces in Washington know is that you do not purposely upset voters.

Now the Treasury takes the billion dollar check which was created out of thin air, with no reserves to back it, and money which did not exist anywhere in the entire solar system before the check was written and deposits it into the government checking account. Presto ... all of a sudden the government computers show that it has a billion dollars to spend.

Not bad. Wonder what would happen if you and I wrote checks on money that we created out of thin air. I think that we might wind up dancing with big hairy men in Leavenworth.

Next: Episode 7 How the Fed Works - the Fed controls the Government and not the other way around!

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 6: The Plan, Part 2

Step 2 of the Plan was to sell the concept to the American public.

The first draft of the Federal Reserve Act, when presented to Congress, was sponsored by Nelson Aldrich and was called the Aldrich Bill.

Paul Warburg had cautioned Aldrich not to sponsor the bill because Warburg felt that Aldrich was too closely identified with big business and that Congress would vote the bill down. Warburg was right. The bill in its presented form died on the floor.

The Unholy 7 took the bill back, moved some of the paragraphs around, and removed Aldrich's name. They found two Democrats, Carter Glass in the House and Senator Robert Owen, himself a banker, to sponsor what would be called the Glass-Owen bill.

Aldrich and Vanderlip then began to give speeches and interviews to newspaper reporters condemning the bill as "ruinous to banking and terrible for the country." By the time the average guy on the street read Aldrich and Vanderlip's comments, the thinking amongst America became, that the Glass-Owen bill must be a good thing because the big bankers were opposed to it. Another brilliant strategy!

Meanwhile back at the ranch, the Unholy 7 were digging ever deeper into their bag of deceptive tricks. They began paying the costs of creating "grassroots study clubs" across the country. They sponsored these clubs, held public meetings and printed brochures and pamphlets extoling the virtues of the Federal Reserve System.

They gave large sums of money to some of the more prestigious universities in America to create new departments of economics. They hand picked their own people to be professors to head up these departments, who then in turn, gave speeches and wrote essays promoting the wisdom and benefits of the Fed.

Paul Warburg then further toned-down the Glass-Owen bill because he felt that the new legislation had to be palatable to as many people in government as possible. In his opinion this was the crucial time during which the boat of common sense could not be rocked.

The other members of his group were upset because they felt that Warburg's toned down legislation was giving up too much of the power and control which the bankers were seeking. Warburg's rationale was elegantly simple. The main objective was not to try to get everything which they had wanted coming straight out of the gate for that would not be possible. Rather it was Warburg's strategy to get the bill passed into law first, then "fix it up later to their liking."

Since the Federal Reserve Act has been passed it has been ammended over 100 times with each amendment greatly expanding the power and reach of the Fed.

The last hold-out against the bill was William Jennings Bryan, the head of the Populist Movement, who was deeply concerned that the bill would ruin the nations money supply. But when he saw Paul Warburg's watered-down version of the bill, Bryan supported the bill never dreaming that once the bill was passed it would be continuously amended.

The Unholy 7 were masters at their game. They understood people, politics and mass psychology. And they played each card perfectly.

Popular support was finally gained for the bill and on December 22, 1913 the bill was passed by Congress and the following day was signed into law by President Wilson.

The Federal Reserve had won the battle and America was now its prize!

Next - Episode 7: How the Fed Works.

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 4: What Exactly is the Federal Reserve?

Some people still think that the Federal Reserve is a U.S. government institution. Nothing could be further from the truth. The Federal Reserve System is not a Government institution, department or agency!!

• It is a system of 12 privately-owned "federal" banks who have been granted their power by the United States government to create money, then loan that money back to the government charging interest.
• the government then charges you income tax to pay the interest on the debt.
• The Federal Reserve Act was passed in 1913.
• The Sixteenth Ammendment, which gave Congress the power to collect income taxes was also passed in 1913.
• The Fed is politically independent and the federal government does NOT HAVE DIRECT OVERSIGHT over what the Fed does.
• From its founding to this present day, the Fed has NEVER undergone a complete INDEPENDENT AUDIT. Congress has from time to time requested that the FED voluntarily submit to a complete audit, and EVERYTIME IT REFUSES.
• The Fed Chairman can say anything he wants to Congress and Congress has to accept what he says, because verification is not always possible because the Fed keeps certain records secret.
• Although the Fed is PRIVATELY OWNED it DOES NOT PAY a single solitary penny in business or property TAXES.

Next...Episode 5: The Plan

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 3: I Don't Believe that it Happened!

It took 9 days for the 7 men to hammer out all of the important details of what would eventually become the Federal Reserve.

For a number of years after the meeting all 7 denied that the meeting ever took place. It was only after the Fed was firmly established that they began openly talking about it.

For those who are still of the opinion that Jekyll Island never happened, several books have been written by some of the participants detailing what they had accomplished. Visit your local library and check them out.

Frank Vanderlip, one of the "unmagnificent 7", wrote an article which appeared in the February 9, 1935 edition of the Saturday Evening Post. Here is a brief excerpt.

" I do not feel it is an exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System. We were told to leave our last names behind us. We were told further that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson where Senator Aldrich's private car would be in readiness attached to the rear-end of a train to the south. Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as Ben, Paul, and Abe. Davison and I adopted even deeper disguises abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville after those two aviation pioneers the Wright brothers. The servants and train crew may have known the identities of one or two of us, but they did not know all and it was the names of all printed together that would've made our mysterious journey significant in Washington, Wall Street, even in London. Discovery we knew simply must not happen."

"If it were to be exposed publicly that our particular group had gotten together and written a banking bill, that bill would have no chance whatever of passage by Congress."

Next - Episode 4: What exactly is the Federal Reserve?

25 Reasons why America is slowly Tanking!

01: The Dow, S&P 500 and the Nasdaq have lost all of their 2007 gains in the first 4 weeks of 2008. We'll see the Dow at 9,500 to 10,500 this year.

02: Gold has gained 43.2% and silver has gained 26.1%. Look for gold to hit $3,000/ounce by this time in 2010 and silver will be over $100/ounce.

03: Real estate markets are virtually dead with record levels of inventory. Housing prices will continue to fall for another 2 to 4 years depending upon what action(s) the government is prepared to take and whether or not those actions make sense in the first place.

04: Hundreds of billions in mortgages are due for readjustment to unaffordable levels for millions of homeowners.

05: Defaults on all types of debt are significantly increasing.

06: Consumers are buried in debt with little or no savings. There is an erosion of consumer confidence.

07: Credit markets are frozen.

08: M3 is about 16% (not published - see note at the bottom of this post)

09: Banks are writing-off or writing down tens-of-billions in subprime losses, bad mortgages and loans.

10: Tens-upon-tens of trillions of potential derivative losses are looming just around the corner.

11: The American dollar is tanking with no end in sight. It will probably bottom-out somewhere between 40 to 50 on the USDX from its current position of 75.8.

12: State budgets are running massive deficits and some are close to bankruptcy.

13: The national debt and trade deficits are completely out of control.

14: There is very little left from the manufacturing sector.

15: Unemployment is growing.

16: Off-shoring and outsourcing continue to eliminate the better-paying sectors.

17: Because of outsourcing, a lower dollar will not give American exports an advantage, because there's not much in the way of exports to begin with. So if the dollar is pegged at 55, the GDP would only increase by 1/2% at the top end.

18: Wages will remain stagnant.

19: Oil prices will continue to climb. Look for $125 - $130/barrel this year.

20: There will be price increases for most commodities.

21: Food prices are now at record highs.

22: Irresponsible and unresponsive government. The recent "economic stimulation" package is merely a drop in the ocean. It is not enough to cause any type of permanent improvement in the plight that Americans now find themselves in. As far as I'm concerned it is a PR package pure and simple to help the Republicans in the upcoming presidential election.

23: The Federal Reserve, which is neither Federal nor a Reserve, but rather a privately owned central banking system owned by a cabal of 12 banks with the power granted to it by government to create print and manage Americas money supply, is driving America further in debt each and every day. The Fed is, was and continues to be the biggest scam ever foisted on America. Google it and be surprised at what you will learn. And these greedy clowns control your life through your economic well-being or lack thereof. By the way, even the courts have ruled that the Fed is NOT part of the government.

24: Rampant illegal immigration is providing a source of cheap labour.

25: Perpetual abscence of talented and knowledgeable leadership in Washington today and in the foreseeable future. Listen to President Bush, Billary Clinton, Obama, McCain, Romney, and Huckabee. Now ask yourself ... is this the best that America can do? Can any one of these people fix America's problems or are they in varying degrees part of the problem?

NOTE:

In the U.S. the Federal Reserve defines (what a surprise) the measures of money supply within 4 categories:

MO: total of all physical currency plus accounts at the central bank that can be exchanged for physical currency.

M1: MO plus those portions of MO held as reserves or vault cash plus the amount in demand accounts (Checking or current accounts)

M2: M1 plus most savings accounts, money market accounts and time deposits (certificates of deposit) under $100,000

M3: M2 plus all other CD's, deposits of eurodollars and repurchase agreements.

The Fed stopped publishing M3 stats in March 2006 (My gosh another surprise) explaining that it costs too much to collect the data and that it doesn't provide significantly useful information ... really?