Federal Reserve is “Paper-Tiger”; Real Power held by Exchange Stabilization Fund

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Conspiracy theories abound concerning bankers in general and the Federal Reserve System in particular.  Fed Chairman Ben Bernanke and the Federal Reserve are routinely accused of being controlled by global bankers, and being responsible for the America’s economic decline and march towards fascism and servitude.

The author of the following videos asserts the the real “villain” in control of America’s economic and political system is not the Federal Reserve System, but rather the shadowy Exchange Stabilization Fund (ESF).  The ESF was created in A.D. 1934 as a low-profile agency of the U.S. Department of the Treasury (currently headed by Tim Geithner).

If the author of these videos is correct, the Federal Reserve is the Lee Harvey Oswald (the “patsy”) of the assassination of The United States of America.

 

The Fiat Money Game

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Modern banking has a fundamental problem: Bankers lend fiat currency used as principal in a loan, but don’t also loan the required interest into circulation. Because the interest isn’t loaned into circulation, it’s technically impossible to repay all loans and the interest on those loans.
The requirement that loans be repaid with interest guarantees that some borrowers must fall into bankruptcy and lose whatever collateral they put up for their loans.
Most people are unaware of the ever-present impossibility of fully repaying all loans (including interest) because that reality is concealed beneath the turmoil and complexity of modern banking. Virtually no one appreciates that the fiat currency “game” is impossible for all to win.

 

Lew Rockwell: Death of the Dollar

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Lew Rockwell:  America’s standard of living is lower today than it was in A.D. 1971–when President Nixon ended all gold backing of the dollar. . . . We’re in a Depression right now. . . . You can’t trust the government . . . . government is wrecking the economy . . . . both political parties are equally responsible for the current economic problems . . . . the only way to get out of a recession/depression is the liquidate the unpayable debts by means of massive bankruptcies. . . .  allow the big banks to go out of business . . . .  we need realism rather than “phony, opium dreams out of the Federal Reserve”.

video  00:10:14

http://www.youtube.com/watch?v=AWc_BNV1FMM&feature=player_embedded#at=124

 

Exchange Stabilization Fund

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The “Exchange Stabilization Fund” was created in A.D. 1934 for the alleged purpose of stabilizing the value of the dollar.  It is alleged to be a huge slush fund that is, by law, absolutely exempt from any congressional oversight.

The Secretary of the Treasury (Timothy Geithner) operates the “Exchange Stabilization Fund” in nearly perfect secrecy.

According to the series of videos below, the Exchange Stabilization Fund is the real power behind the Federal Reserve System.  The Federal Reserve is routinely blamed for our country’s financial ills, but the real “villain” is the Exchange Stabilization Fund.  Based on these videos, it might be argued that the Exchange Stabilization Fund is the architect behind the New World Order.

 

The Year of the Rats

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Austin Goolsbee was President Obama’s chief economist.  I saw him interviewed on one of last Sunday’s TV-news talk shows.  He looked anxious and defensive.  But he gamely argued that the previous month’s bad job and manufacturing reports were only one-month aberrations and did not compromise the ongoing “recovery”.

So, I was surprised when it was announced the next day that Mr. Goolsbee had resigned from his White House post.  I don’t know if he actually resigned, or was fired.  But his departure can’t be viewed as evidence of an economic recovery.

The “rats” are leaving—or being driven from—what increasingly appears to be a sinking ship.

 

Currency War III—the Libyan Intervention

“Legal reform” is a catch-all for dissidents who’re fed up with governmental abuse—especially in our courts.  I’ve been a political activist in the “legal reform” movement for 28 years.

I published a magazine (the AntiShyster) for 12 years that dealt with “legal reform” issues and strategies.  The issues were almost always valid.  The strategies devised to combat governmental abuse sometimes worked, but were often half-baked, ineffective or even unlawful.  Those strategies weren’t “wrong,” per se—they were simply the first steps in learning to understand and resist governmental oppression.

As a result of publishing a multitude of articles in the AntiShyster on these various “legal reform” strategies, in the 1990’s I came to understand a fundamental truth:  dissidents could advocate almost any strategy they liked (no drivers license, stop paying income tax, even call for the assassination of the President) and they might attract some onerous governmental attention—or they might not.  (The gov-co doesn’t really care if you kill a president.  They can screw ‘em in and screw ‘em out of office—just like light bulbs.  In the eyes of the gov-co, even presidents are “disposable”.)  But any dissidents who dared to effectively challenge the money system (and some did with homemade money orders, “comptrollers warrants,” and even attempts to initiated their own silver-based money, etc.) were going to jail.  You could bet on it.

 

Economist Marc Faber has Bad News and Good News

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On February 21^st, Alex Jones interviewed economist Marc Faber concerning the current state of the US and global economies and where we’re headed.  That interview is recorded in two videos at YouTube under the headline:

“Marc Faber:  The Total Financial Collapse of America is Here! – Alex Jones Tv 1/2”.

In fact, that headline is disingenuous.  It might be a misstatement.  It might be an exaggeration.  It might be fear-mongering.

In fact, Mr. Faber did not expressly say the “collapse” is here—as in “right now” or nearly “right now”.

Faber did say that we are in the “end game” right now.  And he implied that an economic collapse is inevitable. But he repeatedly implied that the US and global economic systems could hold together for another three to seven years.

 

Bix Weir: Crash Could Come in March; $6,000 Silver Possible

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Bix Weir is the author of the “Root To Roota” theory which claims that Alan Greenspan (and even Ben Bernanke) are “good guys” who are trying to intentionally collapse the economy in order to strike a mortal blow against fiat currencies and force the world to return to a gold and/or silver standard for money. The idea that the Federal Reserve System is and has been run by guys determined to destroy the Federal Reserve System strikes me as extremely improbable.  Are we to believe that the people that Greenspan and Bernanke work for are so stupid that they couldn’t figure what the two Fed Chairmen were really up to?  I don’t think so.

 

The Nature of Money: Greater Fools & FRNs

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In 1998, everyone knew that the stock market was hugely overvalued. Nevertheless, people continued to purchase more stocks.  These purchases were justified in part by the theory of “greater fools”.

Under the greater fool theory, I can afford to foolishly pay $100 for a stock that’s only worth $50, so long as I can find an even “greater fool” who’ll pay me $150 for the same $50 stock.  My “greater fool” can safely pay me $150 (for the $50 stock) so long as he can find an even greater fool who’ll pay him $200, etc.

 

The Nature of Money: All Rights Flow From Title

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In last week’s “The Nature of Money” article, I began to explore the consequences of loaning currency into circulation.  I argued that:

1) Because our modern “Federal Reserve Notes” (FRNs) are loaned into circulation, the lender (the Federal Reserve System) retains legal title (right of actual ownership, control and disposal) to the green pieces of paper in your wallet;

2) You have only equitable title (right of use) to those green pieces of paper; and, therefore,

3) Because you hold only equitable title to “your” FRNs in your wallet, you can only use those FRNs to acquire equitable title to the property you purchase.

As a result, your home is not your “castle,” and you are a virtual sharecropper rather than a free man.

This week, I’ll expand on that argument and its legal consequences.