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Posts Tagged ‘Federal Reserve’

I was listening to this 3-hour uninterrupted 2005 interview of Dr. Charles Murray, author of The Bell Curve, and just near the end, I recognized the late Eustace Mullins calling in!

It’s great when you know of certain people, recognizing their voice, and hear them on shows from years ago.

Eustace Mullins is known to many readers of this site as the author of the Secrets of the Federal Reserve, which G. Edward Griffin, acting as a hired hand for the John Birch Society, heavily borrowed from, topically, but repackaged, to conceal the problem of usury.

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One of the misconceptions bandied about in the alternative media is that Former Federal Reserve Chairman Alan Greenspan claimed in 2007 that the Fed was above the law, as this popular video indicates.

Here’s what he actually said:

The Federal Reserve is an independent agency, and that means, basically, that there is no other agency of government which can overrule actions that we take.

He didn’t say that the Fed is above the law — he made the true claim that no other *agency* of government can overrule it, where agency means some other body created by Congress. Congress itself can get rid of the Fed, and should, because its purpose was to serve the big financial interests and not the interests of the people, such as limited state banking and usury-free community currencies would.

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Federal Reserve BoardNote: This is based on this article I posted on April 21, 2012, with the exception that it was about the 99-year charter misinformation, and I have substituted 100-year, which is the alternative misinformation that some people were spreading in 2013 even after the 99-year charter claim had been shown to be false.

There was actually a commenter who alleged a coverup on the part of the Federal Reserve, saying they were lying about there not being a 99-year charter. This is unfortunately not uncommon in what passes for the alternative media these days. It’s not because the Federal Reserve’s website says there was originally a 20-year charter that I say there was a 20-year charter. It’s because there are a variety of historical sources that say so, some of which are non-governmental, and not supporters of the Fed.

The claim that the Federal Reserve was given a 100-year charter set to expire in 2013 isn’t the only myth surrounding its creation.

There is also the myth that the Federal Reserve Act was passed during the Christmas break when most members of Congress were away. That isn’t true, and there is the official record showing the final vote in the Senate was 54-32 on December 18, 1913.

According to Section 4, part 2 of the Federal Reserve Act, 1913, it says of each of the 12 privately owned Federal Reserve Banks:

“To have succession for a period of twenty years from its organization unless it is sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law.“

Since the Federal Reserve Board’s site shows that all 12 original Federal Reserve Banks are still in operation, their 20-year charter must have been extended.

A 20-year charter was also granted to the First and Second Banks of the United States, and both had their charter terminated. Yes, there was a time when privately owned central banks had time-limited charters, and for good reason, due to the havoc they caused.

12 U.S.C. § 341 : US Code – Section 341: General enumeration of powers shows:

“Second. To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.“

Again, since the Federal Reserve Board’s site shows that shows that all 12 original Federal Reserve Banks are still in operation, this provision was either changed with some other time limit, or was never changed.

In fact, it was never changed, and, therefore, their charter doesn’t expire in 2013, and there was never a 100-year charter for the Federal Reserve.

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G. Edward GriffinSome interesting points arose out of this November 24, 2013 interview on the Big Plantation with G. Edward Griffin.

First, in clearing up a misconception about an alleged 100-year charter for the Federal Reserve, he claims there originally was one, when in reality, it was a 20-year charter.

16m – In clearing up misconception about a 100-year charter for the Federal Reserve, he says there originally was one, and it was later removed, when in reality it was a 20-year charter
19m – No JFK speech at Columbia university about breaking up Fed, as he had never even been to that university
25m – Said he likes Bitcoin a lot because it’s independent of government interference
26m – He likes the feature that the supply is limited (FC: Actually, this is one of its big negatives, in my opinion)
27m – Said he doesn’t like that it’s not backed up by something of intrinsic value
28m – Admits govt can shut down gold and silver, too
28m – Said it’s a good idea to have your assets tied up in gold and silver (FC: It wasn’t a good idea in 1933 and 1934, when they were confiscated, respectively!)
29m – Says it’s playing a very important role in the awareness of our monetary problems today
33m – Admits bankers do own a lot of gold, because it’s a store of value (FC: And because they have historically controlled money, economies and nations with it)
34m – Laughably says it doesn’t mean they want to back a currency with it, because it puts limits on their ability to make more money off interest (What about the U.S. backing up its money supply from 1914 to 1933 40% by gold? Were the people crying out for that, or was it the bankers? He’s either unaware of, or intentionally concealing the historical pattern of the bankers reverting to some gold standard in order to shore up confidence in the monetary system after they’ve collapsed the current one.)
39m – Said he’s read evidence claiming that silver could be equal to gold in an unregulated market (FC: Not much evidence to suggest that, since gold has always traded higher than silver throughout the entire history of the United States, including the nearly 30 years after Andrew Jackson killed the Second (Central) Bank of the United States).

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Gary NorthIn response to Gary North’s November 29, 2013 article, “Bitcoins: The Second Biggest Ponzi Scheme in History“:

I hereby make a prediction: Bitcoins will go down in history as the most spectacular private Ponzi scheme in history
– If it were a private Ponzi scheme, it’d be illegal, and would already be prosecuted, just like the Ron Paul Liberty Dollar founder, because of its threat to international banking hegemony.

The coins will never be the money of the future.
– Just like his failed Y2K prediction, that it would be a big civilizational disaster, and wasn’t? Or his prediction that Apple stock was going down after the departure of Steve Jobs, only for it to increase by over 50% in just 5 months?

The best definition of money was first offered by Austrian economist Carl Menger in 1892. He said that money is the most marketable commodity.
– Implies that there can only be one form of money at any time. Currently, the U.S. dollar is the most marketable commodity, meaning that gold isn’t the most marketable commodity, currently, by consequence, isn’t money.

In that book, Mises argued, as Menger had before him, that money arises out of market transactions.
– Yes, and through government fiat, which results in the market transactions.

Now let us look at bitcoins. The market value of one bitcoin has gone from about $2 to $1,000 in a year. This is not money. This commodity is not being bought for its services as money. It is unpredictable to a fault.
– By that measure, gold also isn’t money, since it had an embarrassing 21-year performance, in dropping from $850 USD an ounce in 1980 to below $250 USD by 2001.

Here is the Austrian school’s theory of money. People buy money because it has not fallen in price. But it has also not gone up in price much, either. It is predictable.
– By that measure, gold hasn’t been money since at least 1980

In other words, Bitcoins are not money; dollars are money.
An amazing statement from a gold-as-money promoter.

There has been no challenge from Bitcoins to the reign of the dollar.
– And this is surprising, how? It started in January 2009, so why should anyone expect otherwise?

This Ponzi scheme is not illegal
– An internal contradiction, since a Ponzi scheme, by definition, is illegal.

But the fundamental characteristic of money is its relatively stable purchasing power.
– No, the primary characteristic of money is its ability to function as a medium of exchange

Bitcoins have to have stable purchasing power if they are to serve as money, and they will never, ever achieve stable purchasing power.
– Why not? With the growth of the supply decreasing with over half of a fixed total of Bitcoins mined, the math points to an eventual relatively stable purchasing power in the absence of major government interference.

There has to be an economic justification for a capital investment, and there is no economic justification of buying Bitcoins as an alternative currency.
– Then why is fellow Mises Institute associate, Tom Woods, accepting Bitcoin as payment for his goods and services provided through his Liberty Classroom?

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Here is a summary of my November 17, 2013 interview on Erskine Overnight, on the Genesis Communications Network:

2m – Usury redefined from any amount of interest to an arbitrary amount set by law
3m – Actual U.S. federal debt exceeds world’s annual economic production, and derivatives estimated to be over 1000 trillion dollars
4m – Derivatives brought down Wall Street banks, unregulated credit default swaps
6m – States getting around their constitutionally mandated balanced budget requirements
7m – States and federal government should be issuing their own interest-free credit
7m – interest-free United States Greenbacks
8m – Despite more seeming competition in U.S., relative to Canada, top 6 U.S. commercial banks have over 70% of commercial deposits
9m – Bank for International Settlements in Switzerland, founded in 1930, as a bank for central bankers, with around 60 countries as members
15m – Money is supposed to primarily serve as a medium of exchange between producers
15m – Money is actually functioning primarily as a medium of power
18m – 1933 gold confiscation, 1934 silver confiscation, 40% backing by gold, confiscated gold may have been pledged to international interests
19m – Canada’s largest gold bank, Scotiabank, caught not having enough physical gold in their vaults
20m – China and India’s interest in gold
21m – Platinum also a great micro investment
26m – Bitcoins – started in January 2009, don’t know who was behind it, all transactions are public
27m – government plans to tax Bitcoin transactions – income and capital gains
27m – $150 million in total Bitcoins at start of 2013, up to $4.5 billion as of mid-November 2013
29m – Ron Paul Liberty Dollar success, and subsequent government crackdown
31m – Success of the Bank of North Dakota
31m – Bill to study state bank, passed by California’s House and Senate, but vetoed by supposed man of the people, Democratic Governor, Jerry Brown
32m – Local currencies
32m – States prohibited from coining their own currency
33m – States can issue their own interest-free credit
38m – New bail-in provisions, even worse than bailouts
39m – Difference between capitalism and free enterprise
40m – Over 95% of money today is numbers in a computer
41m – Coins are only debt-free money put into circulation by government, currently
41m – Compound interest, compounding the debt exponentially, mathematically doomed to fail, because producers cannot exponentially increase their value to debtors in the long-run
42m – Banks can charge a fee instead of charging usury
43m – Need to cut back unsustainable federal programs, because tax revenues don’t match up with spending obligations
49m – Estimated $16 trillion given to banks by TARP bailout, and $1 trillion went to European banks alone at the hands of the so-called United States Federal Reserve
50m – Out of around 190 countries in the world, only around 30-40 countries had no net debt, or there was no information for them

For more on Erskine, see my articles here.

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Red Ice RadioHere is the summary I prepared of the first hour of my November 4, 2013 interview on Red Ice Radio.

1m – Credit default swaps
3m – The Federal Reserve as the world’s bank
5m – Big economic busts are a direct consequence of the debt-money system with compound interest
5m – Individual interest-based contracts valid, but not in the aggregate
6m – The little-discussed depression of 1920
7m – The multiple and conflicting definitions of money
8m – The primary function of money is to serve as a medium of exchange
9m – Admitted by Austrian School economists that gold has no intrinsic value
9m – Why the Federal Reserve Notes are not fiat money, since they are issued by privately owned regional banks
10m – Misdefinition of fiat money to mean not money not backed up by precious metals
11m – Original definition of usury to mean any amount of interest charged on loans, and not some arbitrary amount set by law
12m – Banks get immense government privileges — such as being able to issue credit tied to the national currency
14m – The Federal Reserve also has privilege to create the world’s reserve currency
15m – The Fed’s banking elite origins
16m – Canada didn’t have a central bank until 1935, and it had different origins than the Fed, with Western farming interests pushing for it
16m – Shouldn’t be any central bank — only a national treasury
18m – Institutions and the people in them both matter a lot, but the structuring of institutions is key, since any bad institution can bring out the worst in people
19m – Form of government that allows for wealth redistribution, such as in the U.S., depends on a moral people
20m – 2010 article about non-U.S. banks that got bailed out by the supposed national bank of the United States, the Fed
21m – Change from mark-to-market to mark-to-model for valuing bank assets, to prop up bogus bookkeeping
22m – Derivatives formulas didn’t take into account super cycles
22m – One-time full audit of the Federal Reserve
23m – >70% of consumer deposits held by only 6 biggest banks in U.S.
23m – Should the bankrupt banks have been allowed to fail?
24m – Paul Krugman’s call for nationalizing the banks
25m – My proposed response to the 2008 crisis
26m – Problems with a centralized system
27m – A crisis brings lots of opportunity for change
28m – The Volcker Rule still not implemented
29m – Ithaca Hours local currency and other local currencies
30m – State banking initiatives led by Ellen Brown
30m – U.S. Congress has the second worst representation of any country in the world, with China having better representation
31m – California Governor Jerry Brown vetoed a bill just to even study the implementation of a state bank
31m – Real solutions start locally
32m – Some currencies served different purposes
32m – Gold is deflationary
33m – Gold dropped from $850 USD an ounce in 1980 to below $250 USD by 2001
33m – Gold went from $20.67 USD an ounce in 1933 to $35 an ounce less than a year later, just by law
34m – Don’t know how much gold is still in Fort Knox, or is there but has been pledged for debts
34m – Gold is a scarce resource, and the properties of the currency determine its usage
34m – Gold in IMF vaults doing no good for the people right now, same with Fed’s gold
35m – India bought a lot of gold after 2008, to bolster their gold reserves
35m – Bank of Venice, which operated for hundreds of years, and its paper documents traded at a 20-40% premium over gold
37m – What matters is not what “backs up” the money, but the quantity of money in circulation
38m – False pretences of TARP bailout in 2008, said to be for buying up subprime mortgages
40m – Paper money only accounts for 3-5% of the money supply in U.S.
40m – Bond vigilantes a good phenomenon
43m – Jim Cramer laughably saying there was no problem with Bear Stearns, not long before it collapsed and was bought out
45m – Many Congressional representatives have no financial background
46m – Media concentration problems
47m – Erroneous Supreme Court decision that money is equal to free speech
51m – Capitalism vs. free enterprise
51m – My November 16 Toronto keynote address at the 9th annual UsuryFree week

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