The "Other" Anniversary That's Far More Important

Tyler Durden's picture

Submitted by Simon Black of Sovereign Man blog,

Though still a week shy of its centennial anniversary, the US Federal Reserve will hold a celebration this afternoon in Washington DC.

Just imagine the scene - a bunch of current and former central bankers slapping each other on the back, congratulating one another for a job well done over the last 100 years.

Of course, you and I know this is total nonsense… as is the concept of our modern monetary system in which we award total control of the money supply to a tiny central banking elite.

Human beings are fallible. We are not gods. Yet we practically deify central bankers and entrust them with the power to manipulate markets, control prices around the world, and effectively dominate the economy.

This system has proven to be foolish and destructive.

While the Fed engages in its self-aggrandizement this afternoon, there is another far more important anniversary today - the Boston Tea Party.

It was this day in 1773 that dozens of men dumped 342 chests of tea from 3 ships into the water. But what a lot of people don’t realize is that it started with bankers.

In 1771, London banker Alexander Fordyce of the banking house Neal, James, Fordyce and Down thought himself infallible too.

Fordyce had made a fortune as a speculator, and he enjoyed his opulent wealth. He held magnificent estates in Surrey, Roehampton, and Scotland, and once blew 14,000 pounds (several million dollars today) running for parliament.

There was only one problem: Fordyce began making his bets using other people’s money. And when his bet on the East India Company didn’t work out, Fordyce’s bank used customer deposits to cover their losses.

By June 1772, the bank could no longer keep up the charade. And within days their collapse caused a cascade of other bank failures as far as Edinburgh and Holland.

With a crisis unfolding, the government forced the central bank to intervene in a way that was eerily similar to the 2008 financial crisis.

Just like 2008, too-big-to-fail companies got bailed out… including the East India Company itself. The East India Company was a bit like General Motors a few years ago– it was obvious they were in financial straits.

And as part of the bailout, the British parliament soon passed the Tea Act– an attempt to flood the colonies with the East India Company’s stockpiles of excess tea.

The Tea Act had another purpose, though– to assert parliament’s right to tax the colonies. And this is what ultimately led to the Tea Party on December 16, 1773.

John Adams wrote in his diary that the destruction of the tea was ‘daring’ and ‘intrepid’, and that to ignore the Tea Act would be like submitting “to Egyptian taskmasters, to [burdens], Indignities, to Ignominy, Reproach and Contempt, to Desolation and Oppression, to Poverty and Servitude.”

Britain’s harsh reaction to the Tea Party further escalated tensions with the colonists, and it wasn’t long afterward that the first shots were fired.

Given the prominent role of bankers and bailouts in the American Revolution, it’s ironic that the Federal Reserve has chosen to hold its centennial celebration today.

And as they all slap each other on the back today extolling the Fed’s ‘successes’, one can only hope that the arrogance and pomposity of the current system will lead to a new revolution– this time a revolution of the monetary system and a return to the principles of sound money.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
AlaricBalth's picture

The City of London, and it's complicit lackeys at the Fed, is still taxing the colonies 

Winston Churchill's picture

It never stopped.before WW1 the UK just about owned the US lock ,stock and barrel.

ACP's picture

Isn't that lock, stock and two smoking barrels?

Odin's picture

Yes, except now the Banking Cartel shares a symbiotic relationship with a Military Industrial Complex/Intelligence/Think Tank network that has no problem massacring it's own citizens in order to propagate their power...

max2205's picture

Ah...I miss the 1700' running water...toilets. poisoning. ..alcohol poisoning. ..shoot anyone one for any reason

robilla's picture

It was the South Sea Trading Company, NOT the East India Trading Company.

East India Trading Company was DUTCH.

Which now means I have to go back and confirm if all your other info is correct as well.


Nice pitch Simon.

You just did a post about Newton going broke with South Sea Trading... come on!

Digital_Bucaneer's picture

Trolling away Simon's reputation is not the way to go.
You should't discredit him just because he doesn't remember the name of the company.
So what?  Big deal, like he is a robot unable to make mistakes.
Besides, it's just not the way to critizise.
I say so, because I'm subscribed to him, and his observations and recommendations are marvellous.
He does a great job helping people protect themselves with real actions, no verborrea.

TheReplacement's picture

You too?  I, for one, cannot wait for the return!

Clint Liquor's picture

"We are not Gods"

Only God and Central Bankers can create 'something from nothing'.


dick cheneys ghost's picture

and steal your Labor thru 'interest and inflation'

SAT 800's picture

Yep. that's it. you got it. And the answer is ? Silver; the non-inflatble savings account.

SafelyGraze's picture

Messrs B Nank and J Yellenz

Request the Pleasure of Your Attendance

Xmas Day, 2013

Jekyll Island Cottages

Marking the One Hundredth Anniversary of

The Federal Charter in Perpetuity

Federal Reserve, Inc

With Entertainments by

Members of the Senate, Judiciary, Executive and Armed Forces

Reception Following the Event

Hosted by Anonymous Shareholders

AlaricBalth's picture

Secrets of the Fed and the London Connection by Eustace Mullins

Jumbotron's picture

We have targets in sight.  Confirmed.....dress in Indian garb.  Roger that.  Ok, boys......we have a confirmed kill order.  Lock and load....weapons hot.  Keep it nice and tight.

Light 'em up boys.  Confirmed....we have targets painted.  All right boys....nice and smooth.  Level out.....and on my mark......

3....2...1....MARK !!!!

TeamDepends's picture

The Federal Reserve:  Ass-raping you for a century.

ACP's picture

Yes, 100 years ago the bankers scum of the day wanted to commemorate freedom with the re-establishment of slavery.

SAT 800's picture

Something like that. No reasonably well-informed citizen could disagree; it's a shame there are so few reasonably well-informed citizens.

SAT 800's picture

I just noticed your avatar; that's very funny.

SAT 800's picture

"The system has proven to be foolish and destructive"; well,  it all depends on your point of view. Somebodies Ox is getting gored, that's for sure; but on the other hand, some people are profiting for doing nothing.

y3maxx's picture

...Only way out is a Gen Y/Millenial Federal Tax Revolt.

ParkAveFlasher's picture

You have to be cagier, than to simply disregard the IRS.  That is the lesson of the Tea Party.  One wonders how many Tea Partiers were caught and captured in their poetically-constructed act of Defiance.  They found a choke point, exploited it, and made it famous.  Who will assume the disguise and hit the banksters where it hurts?

Jumbotron's picture


Yeah....right.  Good luck kids.

Tanzhosen's picture

One more anniversary coming up next month: 5 years of Zero Hedge!  Next month will mark the 5 year anniversary of the first ZH articles in January 2009.

5 years of predicting imminent collapses of financial systems and stock markets.  5 years warning of imminent wars.  5 years predicting imminent hyperinflation.  5 years of showing with pretty charts, with green and red arrows why precious metals are bound to go through the roof any day now.

5 years of being breathtakingly wrong about almost everything.

But of course, it's only a matter of time.  On a long enough timeline, indeed.  Happy birthday!

Odin's picture

Yeah, you probably should have watched CNBC for all those years, you'd be more well informed...





Tanzhosen's picture

Ick - even worse.  Why not just stay away from any source that thinks it can predict macroeconomic events like these?

Odin's picture

Agreed, all though in ZH's defense they never actually made any concrete predictions, they've really just shown trends and patterns, albeit within a very bearish frame... But I mean who isn't surprised by how long the Cartel has managed to kick the can...

Tanzhosen's picture

Fair enough on the concrete predictions, but their predictions have been unambiguous enough that one can say after 5 years that they were wrong about the timeframe.  The remaining question is only whether they are right about the severity of the underlying economic pathologies.

If they are, then maybe it is just as you say 'the cartel kicking the can' for longer than anyone guessed.

But it's worth considering the alternative, that the ZH perspective is just not in line with reality.  That perhaps if you are so focused on bad news that you will even report on traffic accidents just because well, people died, even though it has nothing whatsoever to do with the economy, maybe your outlook gets eventually becomes skewed.

There are aspects of the economy, both the US and globally, that are worse than they have ever been.  There are also aspects that are quite healthy, some that have never been better.  If you narrowly restrict yourself to only the bad news out of a terror that you might be a 'polyanna' or a 'sheeple', you will certainly avoid that fate, but the alternative might be worse.

MachoMan's picture

I'm not sure that ZH has actually made timing predictions so much as stated the underlying fundamentals...  Essentially, you're arguing the same thing CNBC did to the dominatrix (whitney)...  she was perfectly correct on fundamentals and will be vindicated eventually, but she was taken to task over the fact that it didn't happen immediately...  well, for those of us that care about fundamentals and don't believe we have a snowball's chance of getting the timing right on anything, we don't give a shit about whether any implications of an article come to pass immediately...

If you trade based on ZH, then you've probably lost your shirt...  then again, if you use websites like this to trade, then I've got a bridge to sell you...

Tanzhosen's picture

I don't trade anything.  I invest diversely, and have respect for my inability to predict future price movements of anything better than the market.  Efficient or not, it knows better than I.

And yes, ZH has implicitly made timing predictions.  Comb through past articles and you'll see no shortage of things predicted to happen 'in the coming months' or 'by the end of the year', or that something will absolutely happen within two years.

So while they aren't stupid enough to make obvious, by-this-date predictions, they have made hundreds of mealy mouth predictions that, given enough time, are falsifiable.  That is why it is significant that we're coming up on 5 years.  We're now firmly in territory where so many things that ZH predicts should have happened by now if they had any clue what they were talking about.  Their readership is by and large 'all in', and so will do everything they can to give them a pass, but it will be interesting to see how long it lasts.  One wonders what ZH will look like in another 5 years.  I predict a for sale sign squatting on the domain name.

MachoMan's picture

Again, if they're not willing to stamp a date on their prediction, then what conviction have they (and thus, how much conviction should you place on any back handed timing comments)?  How fruitful is it?  Obvious troll is obvious.

As far as what will be around in 5 years, I'd say that it is the main stream media that is under pressure from the trend, not ZH...  whether or not ZH will be able to capitalize on its stance (goodwill) and catapult into a more diverse offering is anyone's guess.  However, the likelihood is that information providers similar to ZH are in the best place to capitalize on the goodwill of being negative on fundamentals and skeptical of the official narrative (since they'll be correct eventually).  Those media sources that continue to parrot stories and who get lead down the primrose path are going to lose viewers/readers and will not be able to regain credibility.  In some respects, this is already happening to CNBC...

So you're complaining about ZH being incorrect about timing decisions, but fail to discuss whether they're wrong about the fundamentals...  in short, you're arguing form over substance.

Tanzhosen's picture

You are the second person that has put ZH as the alternative to CNBC.  To an extent, I agree, because they're all pretty pointless.  Good financial reporting is possible, but perhaps not as a dedicated 24/7 channel or web blog like ZH - for whatever reason it seems to polarize into bears and bulls instead of an actual objective, unbiased view on reality.  Both are equally stupid, and I hope the fate you are predicting for CNBC happens to them both.

Odin's picture

Look, either you believe the Fed is doing the right thing or you don't. I do not. Neither does ZH.


...The Fed was created for one reason and one reason only: to serve and protect the big banks at the expense of the taxpayer. Even a cursory analysis of it's 100 year history will make that blatantly obvious to the unbiased, objective observer.

OutLookingIn's picture

Yup. And unicorns fart rainbows!

Fundamentals depend on your perspective.

They can be both positive & negative. We are but observers. Keep an open POV, but more importantly, an open mind. All facts considered sceptically until proven. Then question motivation. After all, we are dealing with nothing more than basic human emotions; hate, love, greed, fear, sex, and the need for acceptance. Except of course, if you are a member of the psycopathic control mob that reside on Wall street.  

El Vaquero's picture

I wasn't around ZH in 2009, so I cannot comment about back then, but that is my observation as well.  Usually, the prediction is along the lines of "this won't end well."  Normally, if there is a concrete prediction, it is either ZH quoting somebody else, or a guest post or something of the sort.  I think that part of the problem with making concrete predictions is that there are very few known trigger points to look at.  Obamacare is the only one that I can name, and that asshole in the WH put off the employer mandate, so it isn't even definitive trigger point.  Back with the housing crisis, if one had access to the data, one could at least go through and get an idea when all of the ARMs might reset to a higher rate. 


If I knew that Obamacare were going to be enforced to the hilt, I would be screaming 2014 is going to be the big one, but, I don't know that.  I suspect that we'll be fed more lies and BS while there is a further deterioration of the rule of law and more manipulation until something accidental happens or enough people actually wake up and shit gets real.  To me it "feels" like it should be within the next year, but, "feels" is no substitute for hard facts and data. 

OutLookingIn's picture


I followed TD here from the seekingalpha (07-08) commentary days, after he was banned from that site.

All during this time the content has been consistent. Don't shoot the messenger for delivering what you percieve as being not your POV!

El Vaquero's picture

Well, from my POV, we're going to be very fucked in my lifetime, barring getting hit by a bus and coming to an early end (or something of the sort,) and our entire system, from government to finance has become rife with dispicable corruption.  Trying to make up for the misallocation of increasingly strained resources by papering over everything is no way to run a society. 

Tanzhosen's picture

No question that ZH is consistent.  They will consistently deliver the same view of the world even as it shifts under their feet.  I am puzzled that you see this as a virtue.

OutLookingIn's picture


That "same view" is the W-5 journalistic reporting of the truth.

Of which, I doubt if the so-called "journalists" of the vast majority of the corporate controlled MSM know of!

And if they do, they have long since sold out their 'truth telling' integrity to the all-mighty buck and have become nothing more than hand sock puppets!   

JR's picture

Few are surprised at the continuing model of increased debt these many years, but it’s hardly kicking the can; rather, it is the smashing of America’s shelves of labor, savings, and sound money of every type. It is the intentional, continuous destruction of the American system of free enterprise; it is the punishment of thrift; it is the reward of taxpayers’ money to the co-conspirators for risk; it is the confiscation of Americans’ private property and the people’s sovereignty.

And, to top it off, it is the complete capture of the American political system, severing those last bonds between the people and their elected representatives, establishing instead Fed created money-control over the Congress and the president.

Zero Hedge has it right. Our present civilization, as we have understood it, is verging on collapse unless these massive defects are remedied very soon.

El Vaquero's picture


Few are surprised at the continuing model of increased debt these many years, but it’s hardly kicking the can; rather, it is the smashing of America’s shelves of labor, savings, and sound money of every type.

The model doesn't surprise me.  What does surprise me is that they have kept it going for as long as they have, and at this point, even that is only mild surprise. 

JR's picture

Five years of truth. Five years of chipping away, sometimes a little, sometimes a lot on the Pravda message of the Central Bank…and on the worthless, shiftless, corrupted political class.

Five years of information on freedom in an era of the tyrants.

Where, pray, would we be after these five years without the cutting edge of Zero Hedge? Happy birthday!, indeed.

Tanzhosen's picture

Where, pray, would we be after these five years without the cutting edge of Zero Hedge? Happy birthday!, indeed.

It depends on what you did with their advice.  Certainly if you based investment decisions upon it, then I suppose if they hadn't existed you'd be a whole lot richer.

JR's picture

Silly me. I had been worried about the death of my beloved country and had based my search for truth on ways to stop its erosion into the clutches of the international bankers. I can’t tell you the comfort it has been to me to have witnessed and taken part in the sharing of truth – a commodity so scarce amongst the members of today’s political class and the banker-purchased media.

Zero Hedge does not pretend to offer investment advice but points to the land mines in an ever-complicated investment battlefield. Yes, it provides accurately labeled opinions, but who can dispute the charts and data that so dramatically reveal the lies of the banker economists?

Example: when regular administration reports are released on spending, unemployment, et cetera, one website will provide the truth: Zero Hedge. How could I navigate this world of lies? By blindly following the insiders’ advice only to be trapped unawares down the road?

Could I ask, when the unemployment report is released, do you go to NPR, Bloomberg, Yahoo, MarketWatch or NBC? Or, just between us, do you come to Zero Hedge?

Tanzhosen's picture

Could I ask, when the unemployment report is released, do you go to NPR, Bloomberg, Yahoo, MarketWatch or NBC? Or, just between us, do you come to Zero Hedge?

NPR and Zero Hedge.  Remember, though, all I said was that Zero Hedge is breathtakingly wrong, not always wrong.  I think the perspective is useful, but to consider Zero Hedge the only reliable source of information is insanity.  It is in fact among the least reliable, because it will only focus on the worst news and interpreting it in the worst possible way.

So while I think it's useful, and potentially enlightening, to see what news looks like when it's spun that way, I marvel to see that the ZH readers actually believe it's  more accurate.  How could it be?  They don't get clicks from reporting the news accurately, they aren't journalists.  They get clicks for reporting bad news, because that's what their readers want.  Where they really hit the jackpot is they can actually get away with their readers thinking what they do is responsible journalism because, well, their readers are kind of dumb :(

MachoMan's picture

What is wrong?  The timing or the fundamentals?  Further, I'll pose the question, does ZH even make timing calls (or trading advice)?  You keep stating that ZH is routinely wrong, but what specifically is it wrong about?  If I make a post that says capital goods orders decreased over X period of time, and that's what they did, then how is that wrong?

The implications of ZH are certainly bearish, but you're putting words in the Tylers' mouths. 

Harbanger's picture

ZH reports economic news like it is, I don't even think they are bearish.  The markets are rising because of direct liquidity injected by the Fed, We all knew that was coming.  I invested accordingly.  Invest at your own risk because 2008 was a real event.  PM's are manipulated, we all know that, Gold is moving from west to east in the process.  These are facts not opinions, the USD is being challenged as a reserve currecy, that's a fact, there's a race to devalue currencies, US and global debt is at unprecendented highs, we all know that.  I've made money based on facts I read on ZH during this recession.  I'm not sure what this guy expects.

JR's picture

They get clicks for reporting bad news…

I wish it weren’t so; trouble is, the news is bad. Can you not see that our nation is in a death spiral? I come to ZH to get the news and it turns out the bulk of the news is bad. Is that ZH's fault? And it’s caused by the people who own the currency. Can you not see that they are using it for their personal advantage, and for the willful destruction of the West’s middle class?

If that ain’t bad news, I don’t know what is.

BTW, I know journalists when I see them. This website has some of the best journalists in existence. And the major media, as all would agree, have some of the worst - because they lie.

Tanzhosen's picture

OK, so just in the past few hours Zero Hedge has reported on evacuation of a couple buildings on Harvard's campus due to a bomb threat.  It has nothing to do with the economy, it's just an event that, if zero hedge is lucky, leads to some deaths (which it won't, I've never heard of a bomb scare followed by an actual explosion, kind of defeats the point).  They report instantly on all stories like this, as long as lives might be snuffed for whatever reason, Zero Hedge is on the case.

Then they have another story about Google buying a high profile robotics company because....ah, oh, maybe they'll put guns and stuff on the robots and people will die.

But sure, 'some of the best journalists in existence', as you call them?  Maybe thing are worse than I thought.