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Revolution Monday: The Bankster's Coup
Back in earlier times in America, before the Central Bankers took over, there were lots of financial institutions in the country. Most were fiercely independent and they played a key role in the development of the nation. That was a time when the White House was able to dictate to the banks and financial interests rather than today's mirror/reversed situation where bankers largely tell the government what to do.
Of particular significance are two historical events. One is the history of the Second Bank of the United States, which, after its federal charter was withdrawn, ended up bankrupt in a few years. The key thing to remember is that President Andrew Jackson was so mad at the corruption and attempts to influence government, that he pulled the 'federal charter' of the bank, leading to its demise.
Key point: The President dictated to the Banks, not the other way around.
A second moment of history to be recalled is two days before Christmas 1913 the passage of the Federal Reserve Act. Perhaps the most thoroughly researched book on the forming of the 'Fed" to date has been G. Edwards Griffin's "Creature From Jekyll Island" where the bankers of the day hatched their plans for the monetary takeover of America in a scheme which would, in effect, allow private bankers to charge the country interest on it's own money.
A short video which you can see here, lets some of the secrets out: The Fed's actual owners are secret and the watering down of the purchasing power of the dollar has been successfully 'spun' from theft through watering down to the popular belief that prices go up through a mythical process called "inflation" which was ground into the public mind during the last Great Depression and its aftermath.
Key point: From 1913 until this week, the Fed dealt only with banks.
Now fast forward to this coming Monday when, according to a Reuters dispatch, "The U.S. Treasury will propose...that the Federal Reserve be given sweeping new powers that would make it chief regulator with authority to require actions and to ensure market stability"
Key Point: Having seized control of the currency in 1913, and having sold the notion that prices somehow mysteriously levitate in the general economy independent of the supply of goods, market demand, and supply of money, the bankers club - the not-really Federal Reserve will begin its push Monday to control much more than banking. It's about to seize Wall Street.
In doing so, the Treasury is expected to promote the merging of the Securities and Exchange Commission and the Commodities Futures Trading Commission that oversees the commodities markets.
Oh, and in dabbling their toes in owning (as securities pledge against loans) CMO's and such, the Fed may also have tipped its hat that it's getting into real estate ownership.
Context and Impacts
There are many ways one can describe the Fed's expansion into non-banking financial regulation.
One way is to argue that because of the electronic linkage between markets, its necessary to ensure 'market stability' at all costs, thus justifying the expansion.
On the other hand, as an independent speculator, which I readily confess to being, there's another equally descriptive term: Price Fixing.
The bailout of the financial institutions which we've been witnessing develop over the past year, or so, having arisen out of the mortgage bubble collapse, in pure economic terms should have resulted in the destruction via bankruptcy of the immoral, unethical, and unsound characters who caused the condition.
However, in today's United States, which adheres to a more generally socialist agenda (*e.g. government control and central planning) such self-cleaning properties of American Free enterprise are no longer politically acceptable. It's just not Agenda 21.
Instead of allowing market forces to shut down Bear Stearns, or other "too big to fail" institutions, what we witness instead is the methodical use of taxpayer monies to bail out the morally and otherwise bankrupt firms that gambled too heavily on CMO's, CDO's, SIV's, and the lot, with probable foreknowledge that (wink, wink, nod, nod) there really would be no risk to those making the decisions: The Taxpayers would be writing the checks to cover bad bets, which is where we are today.
In a country where the number of movie and mindless infotainment channels outnumbers the financial channels by perhaps a 200 to 1 ratio, it's understandable, yet sad anyway, that the bankers are using the excuse of "market stability" to enforce price fixing.
Is it possible that the linguistic work of www.halfpasthuman.com which has been pointing to a rebellion/revolution this spring and lasting for several years was not about regular people being priced out of their homes by foreclosures, losing their jobs through offshoring, or walking because gas is headed skyward and instead refers to a banker's coup?
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Americans have always had a 'silent partner' in their investments. Whether it was a farm in Washington's time, or a Silicon Valley startup in the Internet bubble days, business has always paid some tribute to government in order to secure our greater good.
However, when I stand back and review the longer view, I can't help but notice that government's tribute, as a percentage of the gross, has expanded 20-50 fold since revolutionary days. Simply put, the bankers have been doing a marvelous job of getting a larger and larger piece of the fruits of the enterprising American worker's labors.
I have no doubt - well, OK some - that the Fed Chairman and the Secretary of the Treasury are well-intentioned: They realize that if the banking system were allowed to go through its normal 'self-cleaning cycle' that a lot of damage would be done, and millions would see their retirement accounts evaporate, because the investment community conned everyday folks into a belief that investment advisers and their ilk could make better decisions about what's a sound investment, than could a thoughtful worker who considers carefully where to save and invest.
Well, surprise, surprised, they didn't. They puffed up the books and sold liar's paper. But rather than fess up - with a few well earned visits to the iron-bar hotel, the Fed's bailing out Wall Street. But in return, this deal with the Devil, now turns to a pact to honor the Devil's spawn, the banksters behind the scenes... the 30% interest crowd.
Thus, as the era of American capitalism comes to an end, we see the institution of American socialism in its rawest price fixing mode entering the scene. Like junkies hooked on smack, the American worker has been fattened by the bankers of cheap credit, and absent assent to a slaughter of our freedom, we'll be beggared and bankrupted one-by-one and sent to tent cities where colored wrist bands will mark those allowed into the Bush presidency's hidden Hoovervilles.
Monday will also mark, if there had been any doubt previously, the end of the Republican Party that I grew up with. There was a time when the GOP stood for small central government, a progressive civil rights stance, strong belief in states rights, and minimal foreign entanglements along with strict adherence - to the letter - of the greatest Nation founding document ever.
Gee, I don't suppose you have any idea where the real Republican Party is, do you? I routinely call the current batch of pretenders "republicorps" because the universal solution to all problems in the country has been more laws, more governance, and oh, by the by, a bigger share for your silent partner.
The myth also persists that that there is an opposition party, the Democratic Party. Yet I continue to call this party the 'democorps." Why? Because the democorps, like the republicorp have their hands so far into the corporate cookie jars and have succumbed to PAC attacks to such a large extent, that genuine change of a policy found lacking can no longer be achieved because the money and 'grease' rules the day; the grease being voter turnouts promised by the PAC's, the campaign workers supplied, and so forth.
So, Monday the Revolution begins. Bankers will promote their socialist / price fixing, total government control of markets under the guise of 'saving us' from misdeeds by people who have made what are called 'errors in investment judgments'. In an earlier time, it would have been called fraud or rampant speculations and people would be fired, bankrupted, jailed, or hung for such breach of the public trust.
"Market Stability" is like pregnancy: You're either price fixing, or your not.
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I've been writing about since 1995 about the economic future of America. You can find papers and notes I've made all the way back to 1997 in the library on this site. At it's core, this site has been watching for the painful - but manageable - wringing out of malinvestment from the system so that America can go through its periodic rebirth, formerly happening in long wave economic pivotal years like the Panic of 1873 and then the Depression of the 1930's.
In Biblical times, these were Jubilee Years (go reread Leviticus) and all debts were forgiven. In modern days, it was Long Wave Economics, but the same principles of death and rebirth continued.
Most weekends I offer a summary of various news events, a little contexting to maybe help you see the way to the future more clearly. But this weekend, there is only one story. ^There's a revolution coming Monday.
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America has one of its most important decisions ever just ahead. Although it may be summarized incorrectly here, my view is that it comes down to a choice between two alternatives that demand your most solemn consideration.
We can, on the one hand, accept the proposals put forth by what I refer to as the corpgov and banksters. In accepting their proffered solution, we will be agreeing to more government and what's worse, more government control of private enterprise. With it will come further price fixing of financial markets via the interventions of the Plunge Protection Team, more formally the President's Working Group on Markets.
The outcome here will be a complete government stranglehold on your finances, assuring that without perfect cooperation with the system, you and your descendants will be "subjects" of the system rather than Free Men and Women. You'll be told where to work, what to think, and how to act to a much greater extent than even now because as history has taught us, absolute power5 corrupts absolutely.
The other outcome, which I admit is much less likely but the one I personally favor, is to take the other path. The one both political parties (before corporate subversion) followed: Strictly allegiance to the Constitution, the Bill of Rights, and a balance between the legislative, executive and judicial branches. Oh, did I mention sound money?
The problem with this path is will hurt - and maybe a lot: People will lose savings, but the flip side is the bankers can be brought to heel; the spiraling growth of government can be slowed. Maybe even reversed. Freedom - in the purest sense of the Framers - can be preserved. Or, it can be lost forever.
By the way; it never occurred to me to put it into a web browser, but see what happens when you click on www.usconstitition.gov or www.billofrights.gov. Nothing! Is this some kind of a hint? Is the outcome already assured?
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I've chosen with my wife to live in a remote part of East Texas because of the spirit of the place. We don't have credit card debt, and we have voluntarily eschewed the 'flash and bling' media pimped lifestyle based on debt and excessive personal consumption. In a word, we've tried to 'unplug' from the mainstream a bit. No texting, no long commute, no twice weekly trips to big-name department stores, fewer prepared foods. Instead, we have a garden, raise a few animals, and pay our taxes.
The people out here are more 'real' than citified folks. The idea that a person's value is implicit in his vehicle, clothes, brand of cell phone even, well, that's just patently absurd. Strangely, with enough media hype, exactly that kind of thinking seems to prevail in many urban areas, though. We've decided to voluntarily downscale.
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So the Banker's Revolution begins Monday and the choice is simple:
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We can take the easy way which means more government and a furtherance of the recent price fixing in markets...I'm sorry; maintenance of market stability. Come to the great casino, no losers here. Good times, but more regulations, less freedom of choice and a bigger and meaner Big Brother. Did someone over there lose? Well, you just chip in and pay for their losses. The house will keep a share for its hard work, of course.
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Or, we can take the hard path and limit bankers, contain government, hold greedy speculators accountable, and let the markets clean themselves. And if we make bad choices, we will live with those. Hard times for a while, but 30% interest rates can be beaten back to 8%, states can legislate usury, and the wealthy elite 'ruling class' can be sent packing: Those who would export our jobs, leave our borders unfenced, and abdicate their responsibilities to preserve sound money, are welcome to leave.
So give it some thought this weekend. Which side will you choose? Soft and Easy but totally Ruled, or Hard and Thrifty - yet FREE?
Let me know your thoughts. It might make an interesting Monday article if anyone responds. Send comments to george@ure.net.
I'll leave you with three quotes that may help your deliberations on this momentous moment, which will surely pass unmarked by MainStreamMedia:
Winston Churchill's "I have nothing to offer but blood, toil, tears, and sweat."
Karl Marx's "From each according to his abilities, to each according to his needs."
And the most prescient of all: The Walt Kelly Cartoon character Pogo:
"We have met the enemy and he is us."
There is no other story this weekend that even comes close to the magnitude of this one.
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