money eventually returns to its intrinsic value – zero.”
Federal Reserve in collaboration with the giant banks has created
the greatest financial crisis the world has ever seen. The foolish
notion that unlimited amounts of money and credit created out of
thin air can provide sustainable economic growth has delivered this
crisis to us. Instead of economic growth and stable prices, (The
Fed) has given us a system of government and finance that now threatens
the world financial and political institutions. Pursuing the same
policy of excessive spending, debt expansion and monetary inflation
can only compound the problems that prevent the required corrections.
Doubling the money supply didn’t work, quadrupling it won’t
work either. Buying up the bad debt of privileged institutions and
dumping worthless assets on the American people is morally wrong
and economically futile.” ~ Representative from Texas Ron
Paul questioning Federal Reserve Chairman Ben Bernanke
and witnessed various pundits during the Presidential campaign describe
Ron Paul as crazy. The corrupt tax and spenders in Congress know
their days would be numbered if they followed his vision of government.
After reading his tremendously sane rebuke of Ben Bernanke and the
policies of his Federal Reserve, I’m reminded of a classic
scene from Seinfeld.
"Ah, you’re crazy."
Kramer: "Am I? Or am I so sane that you
just blew your mind?!"
Jerry: "It’s impossible!"
Kramer: "Is it? Or is it so possible that
your head is spinning like a top?!"
Jerry: "It can’t
Kramer: "Can it? Or is your entire world
just crashing down all around you?"
scathing assessment of the Federal Reserve’s primary role in
creating the financial crisis and his raking of Chairman Bernanke
over the coals is so accurate, truthful and sane that it should
blow your mind. Mr. Bernanke must have felt like his head was spinning
like a top while Ron Paul gave him a tutorial in basic economics.
Mr. Paul’s noble efforts to Audit the Fed (HR 1207) and eventually
to rid the country of its insidious control over our lives will
bring the pillars of the Federal Reserve building crashing down
upon Mr. Bernanke in his mahogany paneled, gold plated boardroom
with ornate chandeliers.
financial system experienced a 6.8 magnitude earthquake in September
2008. The very foundations of our economy were shaken to their core.
The fear exhibited by government officials, politicians, and the
public was palpable and real. For a few weeks there was the distinct
possibility that the system would come crashing down. A massive
printing of dollars by the Federal Reserve, the clandestine buying
up of toxic assets by the Federal Reserve, behind the scenes deals
with the biggest banks, covert currency swap deals with foreign
Central Banks, and forcing the FASB to change accounting rules to
allow banks to fraudulently value bad loans, temporarily staved
off the final chapter in the 96 year old diabolical experiment in
when the system stopped functioning was our “Minsky Moment”.
Hyman Minsky was an American economist and professor of economics
at Washington University. Dr. Minsky put forward theories linking
financial market vulnerability, in the normal life cycle of an economy,
with speculative investment bubbles produced by financial markets.
Minsky declared that in good times, when corporate cash flow rises
beyond what is needed to pay off debt, a speculative bubble develops,
and soon thereafter debts exceed what borrowers can pay off from
their incoming revenues, which in turn produces a financial emergency.
As a result of such dangerous debt bubbles, banks tighten credit
availability, even to companies with good credit, and the economy
of the financial system from stability to crisis is the “Minsky
Moment". At this point, a major selloff begins due to the fact
that no counterparty can be found to bid at the asking prices previously
quoted, leading to a swift and steep collapse in markets and a dramatic
drop in market liquidity. What Dr. Minsky failed to address was
that the Federal Reserve has been responsible for every financial
crisis in the United States since 1913.
History of Crisis & Political Influence
of the Federal Reserve is shrouded in mystery, with bankers and
corrupt politicians calling the shots from the very outset. On the
evening of November 22, 1910 , Senator Aldrich and A.P. Andrews
(Assistant Secretary of the Treasury Department), Paul Warburg (a
naturalized German representing Baron Alfred Rothschild’s Kuhn,
Loeb & Co.), Frank Vanderlip (president of the National City
Bank of New York), Henry P. Davison (senior partner of J.P. Morgan
Company), Charles D. Norton (president of the Morgan-dominated First
National Bank of New York), and Benjamin Strong (representing J.
P. Morgan), left Hoboken, New Jersey on a train with a mission to
gain complete control over the currency of the United States.
magazine founder Bertie Charles Forbes described the meeting on
Jekyll Island, South Carolina that brought about the Federal Reserve:
a party of the nation’s greatest bankers stealing out of New York
on a private railroad car under cover of darkness, stealthily riding
a hundred of miles South, embarking on a mysterious launch, sneaking
onto an island deserted by all but a few servants, living there
a full week under such rigid secrecy that the names of not one of
them was once mentioned, lest the servants learn the identity and
disclose to the world this strangest, most secret expedition in
the history of American finance. I am not romancing; I am giving
to the world, for the first time, the real story of how the famous
Aldrich currency report, the foundation of our new currency system,
was written… The utmost secrecy was enjoined upon all. The public
must not glean a hint of what was to be done. Senator Aldrich notified
each one to go quietly into a private car of which the railroad
had received orders to draw up on an unfrequented platform. Off
the party set. New York’s ubiquitous reporters had been foiled…
Nelson (Aldrich) had confided to Henry, Frank, Paul and Piatt that
he was to keep them locked up at Jekyll Island, out of the rest
of the world, until they had evolved and compiled a scientific currency
system for the United States, the real birth of the present Federal
Reserve System, the plan done on Jekyll Island in the conference
with Paul, Frank and Henry… Warburg is the link that binds the
Aldrich system and the present system together. He, more than any
one man, has made the system possible as a working reality.”
19, 1913 Congress had two versions of a Federal Reserve bill with
forty major differences. Many Senators left town for the Christmas
break and President Wilson didn’t anticipate a final bill until
January. In a matter of hours, the forty differences were reconciled
and the bill was voted on with 22 of the 88 Senators not in town.
It passed and was on Wilson’s desk for signature by December
22. He refused to sign it, until convinced by Bernard Baruch, a
major contributor to his campaign and Wall Street millionaire. The
passage of the Federal Reserve Act became known as "the Christmas
legislative process Senator Henry Cabot Lodge Sr. wisely pointed
out the bleak future we would endure by giving bankers control over
powers vested in the Federal Reserve Board seem to me highly dangerous
especially when there is political control of the Board. I should
be sorry to hold stock in a bank subject to such dominations. The
[Federal Reserve] bill as it stands seems to me to open the way
to a vast inflation of the currency.… I do not like to think
that any law can be passed that will make it possible to submerge
the gold standard in a flood of irredeemable paper currency.”
[Federal Reserve Act] establishes the most gigantic trust on earth.
When the President signs this bill, the invisible government of
the monetary power will be legalized….the worst legislative crime
of the ages is perpetrated by this banking and currency bill. The
financial system has been turned over to the Federal Reserve Board.
That Board administers the finance system by authority of a purely
profiteering group. The system is Private, conducted for the sole
purpose of obtaining the greatest possible profits from the use
of other people’s money. From now on, depressions will be scientifically
Reserve Act of 1913 created the Federal Reserve Bank with the following
An Act To
provide for the establishment of Federal reserve banks, to furnish
an elastic currency, to afford means of rediscounting commercial
paper, to establish a more effective supervision of banking in the
United States, and for other purposes.
mandate was clearly limited. The idea was that a Central Bank would
be able to keep the periodic panics like the Panic of 1907 from
ever happening again. It appears that four innocuous words opened
up Pandora’s Box and unleashed evils upon all mankind –
“and for other purposes”. The bankers who control the
Federal Reserve along with their politician protectors have dramatically
expanded the scope, authority and influence of the Federal Reserve
with each scientifically created crisis that has occurred in the
last 96 years. They are attempting to grab more power as we speak.