Senate Sponsor Exposes The Real Reason For The Fed

Tyler Durden's picture

Robert Latham Owen was a part-Cherokee Democratic Senator from Oklahoma between 1907 and 1925 who (ironically) championed efforts to strengthen public control of government.

He is, however, best-known as a co-sponsor of a bill that would change the world forever - The Federal Reserve Act of 1913 (which enabled the Federal Reserve System).

Writing later in his life, he reflected (as so many political leaders do once they leave office) on the real reason for the Federal Reserve Act...

From Robert Latham Owen's "National economy and the banking system of the United States"

 

 

...Funding War!


h/t @RudyHavenstein

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HelluvaEngineer's picture

As seen on a bumper sticker on a truck at my local grocery store "War Kicks Ass".  We deserve what's coming to us.

y3maxx's picture

error in chief, golfer in chief,muslim in sheep's clothing in chief, black jew in sheep's clothing in chief.

Tom Servo's picture

WW1 and WW2 sure did get rid of a lot of "unfunded liabilities". 

 

Seems like we're about due for another "purging of unfunded liabilities" now.

Squid-puppets a-go-go's picture

dont allow the illusion of a historical record to cloud your analysis - it smacks to me of historical revisionism by a retired politician trying to lipstick the turd of his legacy

'if it wasnt for me, wed have lost WW1 you know'  

The9thDoctor's picture

Alchemists of old attempted to turn lead into gold.

Now, the Federal Reserve is successful in turning 1s and 0s into gold.

Now, patriots are turning their gold into lead.

Shouting, "Off with the Rothschild Head"

Spigot's picture

It has always been my understanding that the Federal Reserve was created in order to remove the restraint of gold from the financial machine, and in so doing, to provide for unlimited funding for war. Interestingly the Act was signed into law in 1913 1 year before the onset of WW1. The finances of Britain and France were destroyed by WW1. They became debtors to the USA. In 1917, the USA provided the military might needed to overwhelm Germany, AFTER the finances and youth of Britain and France were wasted. How coincidental.

The Doofus's picture

Economic depressions happen from time to time.  Life's a miserable struggle.  I'm just happy that I can still afford beef every now and then.  Can't blame life on the Fed.

Beam Me Up Scotty's picture

After WW3, peak oil will get moved farther into the future.  Perhaps infinitely farther into the future.  If there aren't any humans around to use it, it will last a long, long time.

A Nanny Moose's picture

War does not exist without the destruciton of currency.

Grimaldus's picture

Ummmm, yep and didn't they pass the Federal Reserve act at midnight on Christmas eve or something like that? Kinda sneaky like?

And wasn't Woodrow Wilson a PROGRESSIVE?

Think the FED is full of constitutional conservatives? Well, do ya?

What about the obozo regime criminals? Or Congress? Constitutional conservatives?

That would be a no.

Progressives all.

Crime=Progressive.

Grimaldus

 

marathonman's picture

I think the Republicans caried the bill through Congress to get it to Wilson the Democrat's desk.  It was a complete team effort. 

 

Both gates lead to the slaughterhouse.  Choose wisely.

Grimaldus's picture

I'm having a problem here. I am looking real hard at the republicans, but not seeing any consitutional conservatives....are my eyes that bad? All I see are progressive criminals.......

Grimaldus

ebworthen's picture

If the FED wasn't there backstopping banks/corporation/insurers and the M.I.C. citizens might actually have a say.

This is why they got rid of the Draft and impoverished so many, so they could have a "volunteer" army to wage war.

They either have the delusional Patriots with good hearts believing they will die for "God and Country" and a Liberty that is being strangled, or those desperate to escape the ghetto/barrio/corn field and get a chance at grasping the brass ring.

Meanwhile, the Glass Onion (T.V.) and Interwebs are used to propagandize and distract.

Without the FED backstopping the lies and corruption, people might question.

People might revolt.  Therefore, Central Banks exist.

Greenskeeper_Carl's picture

Not really. War kills off men in their most vibrant and (potentially) productive years. The 'unfunded liabilities' aren't the ones killed off, they are the ones who survive and must've cared for for the rest of their lives. The young are tax debt debt slaves as well as cannon fodder, until they are no longer working or can't be sent to fight. It's the old and the surviving vets who are the unfunded liabilities. Unless this next war the govt seems so intent on conjuring up is fought by people over 60 and disabled vets, it will be CREATING moar unfunded liabilities, not purging them.

Dewey Cheatum Howe's picture

Not if the plan is to use terrorism to thin the herd. If the FED raises interest rates the government spending and national security apparatus they are putting in place to deal with domestic problems collapses, they will default on the interest payments alone with too big of an interest rate hike. That assumes the FED is going to be around by the end of 2015/2016 at this rate. There is nowhere else to get the money to fund it either way, the spending has to collapse into pretty much a balanced budget scenario.

Understand the plan. They are both caught in a trap here and the plan is domestic terrorism to keep the music playing.

logicalman's picture

Unfunded liabilities........

strange term for people, but reasonably accurate.

MontgomeryScott's picture

O.K.,

So there's a simple action that can be taken that will not only restore sound money, but stop this satanic thirst for war and death and debt and slavery and the ultimate destruction of the human race.

END

THE

FED.

Naw, it's TOO EASY! It'll never work, and besides, who's gonna print the money and set the values of it? CONGRESS? Pesky 'Article One' again...

Article I - The Legislative Branch

Section 8 - Powers of Congress

The Congress shall have Power...

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

 

It would take a Constitutional Amendment to change this, wouldn't it?

DAMN. I DO think I have just realized that the Federal Reserve Act of 1913 IS UNCONSTITUTIONAL. The FEDERAL RESERVE is an ILLEGITIMATE and FOREIGN operation under Constitutional Law (the 'Supreme Law', if you will).

How about the States themselves? Don't they have a legal obligation under Article I, Section X, to take NOTHING BUT GOLD OR SILVER COIN as legal payment in tender of debts? Yeah, I think that one's in there as well.

'UNFUNDED LIABILITIES'?

FUND THIS... (graphic of right hand raised, middle finger high)

Goldman is god now. Debt is money now. I'll be in the basement firing up the printing presses and the reloading machines.

Most of y'all are missing the fucking POINT here, as far as the reason for this article being posted. Shit, some are talking about 'if the FED raises rates, then...'.

 

Oldwood's picture

We can't end the fed. How would we pay our bills? Its not like we can EARN that kind of money.

NoPension's picture

If invested properly, and with discipline, saving 10% of your salary, over a period of time.....say 3.5 million years, these debts could be responsibly paid.

lunaticfringe's picture

All the FED has ever been is a funding mechanism for Congress. Absent that credit line, Congress would have to ask the American people to fund their deficit spending each year. We would never need term limits. The Congressional sociopaths would never see a second term.

Milestones's picture

Note: To coin Money, REGULATE THE VALUE THEREOF--Is a U.S. Costitutional direction to CONGRESS to act and have been given direct authority by that document. As such IT CANNOT BE DELEGATED; Only Congress can REGULATE THE VALUE THEREOF. In light of this direct assignment to Congress by this instrument we only need to go to one of the most important lagal decisions made by the Supreme Court in 1803; a decision never overturned as it is the decision that confirmed that the U.S, Constitution is the "Supreme Law of the Land"

MARBURY V MADISON Cranch 2 1803 states:" ANY LAW REPUGANANT TO THE U.S. CONSTITUTION IS VOID AND THIS COURT AND ALL OTHER DEPARTMENTS ARE BOUND BY THAT INSTRUMENT."

The Federal Reserve Bank bill was NEVER legal and president wilson did not have the authority to sign it into law--AND ALL OTHER DEPARTMENTS ARE BOUND BY THAT INSTRUMENT.

This bill was FRAUD from the get go.

 

Milestones

 

 



trulz4lulz's picture

The kinder gentler excess population meme.

yogibear's picture

"WW1 and WW2 sure did get rid of a lot of "unfunded liabilities". 

Wait until WWIII.

Crash Overide's picture

WW1 & WWII was so successful at making money it never ended... they just change the enemy every so often.

Thirtyseven's picture

Must be roughly six Hasbara floating around for the negs.

Dame Ednas Possum's picture

Probably. An accurate way to find out is to review the negs against this comment in an hour or two.

FUCK YOU HASBARA YOU STINKING SLIMEY TURDS. YOU'RE GOING TO HELL.

Dame Ednas Possum's picture

Note the irony that 3 solid gold pens and pen holders were created specially for the occassion.

I appreciate that the currency was gold backed at the time, but it was the first step towards the current fiat abomination.

I wonder if those pens and pen holders are now sat on the desks of Messrs: Putin, Modi and Keqiang.

q99x2's picture

Yep. If you want to stop war wherever war is you gots to be stopping the Goldman Sach.

Liberal's picture

GASP!

As a staunch liberal, I am deeply offended by your racist statement.  When did Jews or Israel ever do anything to incite violence?  You obviously never went to a public school.  I am guessing you were home-schooled by your terrorist sympathizing parents!

 

knukles's picture

So-uv-a-bitch, them Conspiracy Theorists is Right Again!

VAD's picture

People who seek the truth are so, like, annoying and stuff, ya know?

nmewn's picture

As I've often said...War AND Welfare is where they are.

Government as historically understood, operates under a tax scheme. You have X in taxes/tariffs/fees etc. coming in and thats all it has as it PRODUCES absolutely nothing of tangible value. Once its exceed that, it begins to borrow if it wishes to spend moar.

War AND Welfare, be it corporate or individual.

Choose wisely ;-)

DaddyO's picture

Aren't we long passed the point of choices mattering?

The great reset is on the horizon, prep accordingly.

http://goingrogue2014.com

DaddyO

nmewn's picture

Yes, they are long past the point of no return.

Its just that when the history of this thing is finally written at some point in the future, foreign scholars will argue that one group said leave us defenseless and feed the poor! While another group said food will do you no good if someone kills you or if you're a beggar in the street subsisting on the charity of others who have nothing!

So, in the annals of "this democracy" I want it written that everyone got exactly what they wanted.

And they deserved what they got good & hard ;-)

logicalman's picture

You seem to be assuming that there will be survivors after WW3

nmewn's picture

Some seem to assume there will be more than enough money to afford a WWIII, like its manna from heaven or even cure all starvation & disease, people must think it grows on trees...or is printed from nothing, so why do they work? ;-)

But seriously, there are not enough liquid assets to cover the existing debt of the entire world right now, without borrowing from the future, which has produced nothing, it is the future afterall.

DaddyO's picture

Theft from the future!

There will be survivors of the coming conflict no matter which form it takes.

The question remains, what and who will shape the world afterwards?

To the victor go the spoils has always been the mantra before hand. Will the spoils be worth having or just spoiled?

TPTB seem dead set on full scale conflagration with some nukes thrown in for good measure, this doesn't portend for a bright future.

If Israel is attacked, which seems certain at this point. Do they respond by lobbing a few nukes around?

As to the money, CTRL P will buy you a lot of woar! Just look at the image of the article above...

DaddyO

nmewn's picture

Well, I can't see a nation-state attacking India or Pakistan or Israel or China or Russia or the US (for that matter) with nukes for just that reason, they'd be obliterated too.

The people who run these places want to live, don't let them fool you.

As to printing stuff from the ether, CTRL P buys a lot of votes & favors too ;-)

Spine01's picture

The saddest part is that while we spend what is left of the good life, artificially created by borrowing from the future and destroying our environment. Others are spending that time enjoying life.

I'm tired of understanding and seeing talking heads speak with authority say BS and distortions of reality. When it is obvious to me that they are wrong. And the worst part is that when they are willing to follow my models and math, I can prove them why they are completely wrong in their understanding of reality.

Economics is an art that resembles the alchemy of the 1800's to those who understand physics, or the dynamics of complex non-linear non-stationary feedback systems.

Why don't I write a paper about this, simple, I have published many papers and fully understand how the peer review system works in actuality and know that I'd never get it accepted.

If somebody has an economic blog to recommend where I could send my 5 cents, I will.

nmewn's picture

This seems as good a place as any.

You had me at Keynesian "economics is an art that resembles the alchemy of the 1800's to those who understand physics" ;-)

NoPension's picture

You code writers out there, please answer this question. When the existing code gets long in the tooth, and patched over patches, what do you call that in code lingo?
And at what point do you hit "reset" and start over?

I operate on a theory ( pop's actually) that everything is relative or "analogous " to everything else.

Postal's picture

Spaghetti code.

You only hit 'reset' after clearing it with management--to make sure there's enough budget to pay the dev team to work all weekend. :/

acetinker's picture

WWIII has been raging since before the end of the Soviet Union.  The Russians, especially Sergei Glazyev, recognize this.  We are on the cusp of WWIV, you are a war behind.

I never imagined that the musings of George Orwell (born Eric Arthur Blair) would come true in my lifetime.  But here we are.

Make no mistake, we are AT WAR and have been continuously since 1941- it's how this economy works.

Just now, the meme of unlimited growth has reached its climax.  To the corporate 'leaders' of the West, it is time for culling of the useless eaters.  We whine and cry like Kilgore Trout (a Vonnegut character), but they don't care.  They think they can manage this world without us.  They're wrong, but they think they are omnipotent.  They're not, the inbred fuckers are just stupid.

Putin's Russia stands in the breach, just as another visionary, Edgar Cayce, predicted.

Hide and watch.

Just in case you still harbor ill will about my claims vis-a-vis tungsten, it is neither smelted nor cast.  It is sintered, WITH A FUCKING BINDER, usually copper or iron.  I suppose some dumb fuck might decide to smelt it, but it ALWAYS returns to a crystalline structure, no matter the smelting temp.  So, you still have a heavy lump which returns to dust (think salt) at the slightest disturbance.

In essence, it returns to its natural state- powder.  What did you accomplish with all that energy?  Nothing?

Ginsengbull's picture

Tungsten carbide easily cuts through stone.

 

I hear the Germans use it on their kinetic energy sabot rounds, as an alternative to depleted uranium.

 

punches a nice hole, no rads, but it lacks the nice pyrophoric effect.

acetinker's picture

Tungsten carbide is an alloy, Ginseng.  The tungsten is alloyed with carbon, and tantalum, and cobalt, and columbium, and copper, and iron, and wax so it can hold its shape. The wax is what makes this possible, it is the glue that holds these dissimilar metals together so they can be sintered.

If you ever had a ceramics class, your process was similar, but less precise. Sintering is the same as firing, but the temps are a bit higher.

Nowadays, we have coated carbides.  TiN, TiCN, AlTiN, even PVD synthetic diamond, including ZrN.

In real life, the drillers only use tunsgten carbide on decomposed granite and clays.  When the going gets tough, they use boart (the dust left over from ("a diamond is forever") in a metal matrix bond.

So, it sorta depends on what kinda stone you're talkin' about.

All militaries have heavy metal rounds, not just Germany.  Some of them can break your clavicle if you try and fire them, so be careful.

Ginsengbull's picture

I broke that with lead, and fightin once.

acetinker's picture

It's still brittle, kinda like your comment.

Lea's picture

"Make no mistake, we are AT WAR and have been continuously since 1941- it's how this economy works."

Since 1914. IG Farben was launched right on the heels of the Versailles Treaty.