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The Federal Reserve Bank Must Be Destroyed

Tyler Durden's picture




 

Submitted by Patrick Barron via Mises Canada blog,

“Delanda est in Susidium Foederatum Bank”

(The Federal Reserve Bank Must be Destroyed)

During the years of the Roman Republic, Cato the Elder ended every speech with the phrase “Delanda est Carthago” (Carthage must be destroyed). Rome had fought two wars with Carthage, yet the threat to the Republic remained. Cato saw Carthage as an existential threat and concluded that Rome would not be secure as long as Carthage existed. So fervently did he hold this view that he ended every speech, even about completely different subjects, with the famous phrase. I believe that we Austrians need to adopt a similar phrase to remind the American people that the US faces an existential threat from the machinations of the Federal Reserve Bank. “Delanda est in Susidium Foederatum Bank”…The Federal Reserve Bank must be destroyed. Like Carthage, the Federal Reserve Bank cannot be controlled or restrained. Either it or our republic will survive, but not both. For the sake of our nation, the Fed must be destroyed.

 

Founding the Fed Instead of Ending Fractional Reserve Banking

The Fed was founded under false economic premises–to prevent bank runs by providing temporary liquidity to banks which found themselves unable to redeem their certificates and demand deposits for cash and/or specie. The real cause of illiquid banks–fractional reserve banking–was never seriously addressed. It was assumed that banks had the legal right to invest their customers’ demand funds in loans and that runs were caused by over indulging in this practice. But as Murray N. Rothbard explain in What Has Government Done to Our Money?, loaning demand funds instantly places  the bank in an insolvent position, for it cannot redeem all of its demand accounts for cash or specie. Through the process of lending demand funds, the banks have created fiduciary media out of thin air, reducing their reserve ratio below one hundred percent. If the banks do this on a very modest basis, the public may not be aware of the fraud. However, once the rumor starts that the bank is illiquid, there is a literal “run” to the bank to withdraw demand funds. In such a case, even a bank that only modestly lent its demand funds might find itself unable to honor all withdrawal claims and would be forced to close its doors.

(NOTE: Central Banking was established to legitimize counterfeiting fraud, aka – Fractional Reserve Banking)

The Federal Reserve Bank, as the lender of last resort, was supposed to prevent such occurrences by providing temporary, penalty rate loans to struggling banks. Note that there is nothing that a central bank could provide that could not be provided by another private bank. In fact the banking panic of 1907 was stemmed by private bank interventions led by J. P. Morgan. However, Morgan realized that such private bailouts were very risky and presented a case of moral hazard; i.e., that bankers, confident of a bailout by the Morgan banking empire, might  book riskier, higher yielding loans. So rather than face the real cause of banking crises and lobby to outlaw fractional reserve banking, the Morgans, Rockefellers, etc.–who did not want to forego the financial benefits of lending demand deposits–lobbied instead for government to create a lender of last resort, a central bank, which we named the Federal Reserve Bank.

 

Fed Policy Causes Depressions and Then Prevents Recovery

Over time this entity, new to Americans, would expand its role in fruitless attempts to cure crises caused by ITSELF. The Fed caused and exacerbated crises by allowing, facilitating, and expanding the practice of fractional reserve banking. In the 1920’s the Fed began to expand the money supply to prevent prices from falling, justifying its new role as one of maintaining a stable price level. But printing money to prevent falling prices caused malinvestment in the structure of production and led to a depression by the end of the decade.

Rather than do nothing and allow the purging of bad investments and liquidation of malinvestment, which would re-establish a sustainable structure of production, as it had done at the beginning of the decade in the depression that no one remembers, the Fed intervened monetarily to pump up reserves while the Hoover administration intervened fiscally to prevent price deflation and maintain high spending levels. All this is well documented in Murray N. Rothbard’s America’s Great Depression.

Yet even an interventionist Fed could not prevent the massive bank failures of the 1930’s, due to many factors which included restrictive bank branching laws. But the primary cause of the bank failures was *again* the banks’ adherence to fractional reserve banking practices which resulted in  their inability to honor all demand deposit redemption requests for specie and/or cash.

In the Roaring Twenties fractional reserve banking had expanded the money supply well beyond the ability of banks to stem all the runs. Again the banks and the politicians refused to dig deeper into the real cause of the problem. Rather than separate banking into deposit and loan functions–the former would require one hundred percent reserves and the latter would require strict asset-liability management to ensure that loans matured on the same schedule as time deposits, what is commonly known as funding loans out of savings–the government suspended specie redemption and eventually formed the FDIC to “ensure” bank deposits.

However, the FDIC’s “insurance” program was nothing more than an explicit promise that the Fed would print enough money to redeem all ensured deposits, thus insuring the continuation of fractional reserved banking, the very problem that was used as the excuse to establish the Fed; the very problem–bank instability–the Fed was sold to the public to solve. So, once again, a solution to cure a problem caused by the Fed itself resulted in even more power for the increasingly government run banking system.

 

The Monetary Genie Was Out of the Bottle

Once the politicians realized that the Fed could print money at will, the genie was out of the bottle. Money growth did expanded at a modest rate for a few decades, due mainly to the efforts of prudent men such as Fed Chairman William McChesney Martin (1951 to 1970) and fiscally conservative politicians such as President Dwight Eisenhower (1953 to 1961). However, it was inevitable that less prudent men, such as President Lyndon Johnson and all Fed chairman with the exception of Paul Volcker, would rise to power on their promises to fund all manner of government programs with what was now seen to be unlimited money.

This was the key revelation!

Money printed in unlimited quantities could cure all ills, or so it was claimed, and to its everlasting shame the economics profession provided sufficient “academic” cover to support these spurious assertions. Now everyone understood that the Fed could monetize–i.e., purchase government debt itself–any amount of government spending. The economics profession refused to consider the inevitable consequences of these irresponsible monetary policies. Instead it cherry picks historic price data to prove them to be non-inflationary and endorses changes to unemployment calculations to prove them to be fiscally sound, too. These whores, these house economists have their eyes glued to the rear view mirror of spurious government statistics as the race car of state hurtles toward an economic cliff of depression and perhaps even hyperinflation.

 

Money Production and Banking Subject to Commercial and Criminal Law

It matters not who is in charge of the Fed or what rules Congress may insist that it adopts. Once money printing, via fiat or fractional reserve credit creation, is seen to be both feasible, justified, and legal nothing and no one can stop it. The political pressure to fund government programs will be irresistible. Everyone knows that the Fed seemingly has the ability to solve their problem by monetizing the federal debt. Should it refuse to do so, we would see riots in the streets similar to what is happening in Europe as protesters target the European Central Bank.

The only solution is to destroy the monster that makes it all possible, the Fed. Without the ability to sell its debt to its own central bank, government would be forced to live within the means set by the will of the people through their elected representatives. The scales would eventually fall from the eyes of both politicians and public as its becomes clear that what government spends comes at the expense of the private economy. The public would no longer be fooled by government propaganda that its spending spurs the private economy, when it is clear that the only way government can spend is to tax the people or suffer the crowding out effect of private investment by government borrowing. Money production must be moved to private hands that are subject to normal commercial and criminal law, where money printing is nothing more than counterfeiting. Banks, too, must be subject to normal commercial and criminal law, which requires them to treat a demand deposit as a bailment for which they must keep one hundred percent reserves. Loan banking would be subject to the normal principles and well understood practices of sound asset-liability management, whereby loans are funded by real savings and the maturities of both loans and deposits must be coordinated in order for lending banks to honor their liquidity commitments. The path to the destruction of our nation through endless wars and welfare would end with the destruction of the Fed.

 

Delanda est in Susidium Foederatum Bank!

 

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Sat, 03/21/2015 - 20:14 | 5914222 wee-weed up
wee-weed up's picture

Good luck with that!

Only after TEOTWAWKI

Sat, 03/21/2015 - 20:20 | 5914259 highandwired
highandwired's picture

preaching to the choir

Sat, 03/21/2015 - 20:23 | 5914272 Publicus
Publicus's picture

The solution is money printing for the little people.

Sat, 03/21/2015 - 20:24 | 5914281 observer007
observer007's picture

#Banks bankrupt

Credit Default Swaps:

http://cds-info.com

 

 

 

 

Sat, 03/21/2015 - 20:29 | 5914296 Greenskeeper_Carl
Greenskeeper_Carl's picture

Sorry, but Americans are too fat, stupid, and distracted to care. The economy will likely collapse, and rather than (correctly) place the blame directly at the feet of the federal reserve and the govt, the morons that comprise the vast majority of this country will instead beg the very institutions that caused the problems in the first place, begging them to DO SOMETHING, and willingly giving up any freedoms and prosperity we have left at the alter of bullshit these con artists have constructed at our expense.

Sat, 03/21/2015 - 20:38 | 5914323 freewolf7
freewolf7's picture

We can read all the ZH we want, but da peeps ain't gonna wake up till woar fucks with their personal hamster wheel.

Sat, 03/21/2015 - 20:59 | 5914365 Socratic Dog
Socratic Dog's picture

That won't wake 'em up.  Never did before.

Their sons will die heroes!

Sat, 03/21/2015 - 21:12 | 5914391 Anusocracy
Anusocracy's picture

They have to have something that can wake up.

Sat, 03/21/2015 - 21:39 | 5914460 optimator
optimator's picture

Empty food stores usually wake the public up.

Sat, 03/21/2015 - 22:07 | 5914522 TruthInSunshine
TruthInSunshine's picture

The Central Full Fractional Reserve Bank in the U.S. (even though a private entity), regardless as to its official name, has been destroyed twice so far - yet came back to life everything thereafter.

It's a vampire.

Sat, 03/21/2015 - 22:20 | 5914554 Ms. Erable
Ms. Erable's picture

Nuke it from orbit; it's the only way to be sure.

Sun, 03/22/2015 - 00:00 | 5914702 gadzooks
gadzooks's picture

No Space Nukes Please! the`ll turn them on us in a second!

Sun, 03/22/2015 - 03:32 | 5914870 turnoffthewater
turnoffthewater's picture

I only read the title, up vote for me. Been here to long

Sun, 03/22/2015 - 07:10 | 5914985 negative rates
negative rates's picture

Well just don't pay your taxes and they won't have enough money to come after you. I know they have the money, most of you have already paid in to the trusty gvt who refuse to trust their citizens.

Sun, 03/22/2015 - 08:55 | 5915067 Joe Sichs Pach
Joe Sichs Pach's picture

These articles continue to reiterate the same thing:  End The Fed.  

That concept and absolutely understood and embraced here.  This content tells us nothing new.  The crux of it all as it relates to this particular article is right here:

Money production must be moved to private hands that are subject to normal commercial and criminal law, where money printing is nothing more than counterfeiting.

Imagine if the Fed is gone tomorrow.  First thing Monday morning and our wishes come true - GONE.

How does the above happen?  We can complain all we want about the problems it causes but the key to it all is coming up with what's next.  What's fair.  What works.

Sun, 03/22/2015 - 09:53 | 5915169 Thisson
Thisson's picture

Same as throughout history - let the people choose what they'll use as money.

Sun, 03/22/2015 - 09:56 | 5915174 J S Bach
J S Bach's picture

"The only solution is to destroy the monster that makes it all possible, the Fed."

 

True.  However, we must go even deeper and destroy the monsterS who created the Fed in the first place.  Otherwise, they'll simply bide their time and re-emerge at another time and date to enslave us once again.  

Sat, 03/21/2015 - 22:24 | 5914526 bwh1214
bwh1214's picture

This is a better explanation, and a more likely outcome than the destruction of the fed:

http://debtcrash.report/entry/history-and-introduction

Though I would prefer the fed being destroyed.

Sat, 03/21/2015 - 21:39 | 5914453 FIAT CON
FIAT CON's picture

It is amazing how stupid most people are.

 I try to inform a lot of my friends slowy, I send them articles from zh that might  get one brain cell warmed up.

 The other day one younger guy said to me " you are just depressing me with the articles you send me"

So I said to him, imagine that you have a cut leg and you are slowly bleeding to death, wouldn't you want to know so you can stitch up the wound?

But sadly most people don't want to know, How the f*ck will we ever has a possibility of fixing the system if no one wants to hear/learn what's happening.

 Are they so dumb to think that that people that created this mess will fix it?

 

 

Sun, 03/22/2015 - 06:01 | 5914950 bwh1214
bwh1214's picture

I've been pushing this a lot cause it's the easiest to understand for newcomers which is important.

http://debtcrash.report/entry/history-and-introduction

The crash course is also good.

http://www.peakprosperity.com/crashcourse

Sun, 03/22/2015 - 08:55 | 5915060 MilwaukeeMark
MilwaukeeMark's picture

@Fiat Con

I feel your pain (sorry for the Bill Clinton line)

I try to explain to my grown children/son-in-laws, over dinner, exactly what's going on and their eyes glaze over, their minds wander and later when I get up from the table they mutter to my wife that I am getting too depressing and this could never happen here in America.

When I explained to my daughter that she might go to a neighborhood store and find no food, she said she'd simply drive to a store that had some food. How do you fix that?

I've decided to stop talking about it and just keep working behind the scenes to prepare my family.

I want no thanks if I am right, I expect they'll all be too shellshocked to remember any of my warnings.

Sun, 03/22/2015 - 09:46 | 5915148 game theory
game theory's picture

I don't like what the Fed has done...they've poisoned the economy (like chemo for the cancer patient). But all the calls to "end the Fed" never discuss the next logical step that will occur -- which is that US Congress will take over control of the money printing. And then we will all have a problem that is 1000 times worse than the Fed. The politicians in gov't would like nothing better than to get their incompetent hands on the printers. 

Sun, 03/22/2015 - 09:54 | 5915172 overmedicatedun...
overmedicatedundersexed's picture

guys look at the bright side (those who think the fed is in a box)..every move has increased logarithmic wealth of the elite with that the power of the elite..so the owners of the FED are happy. anyone here thinking diff, well you missed the memo.

Sun, 03/22/2015 - 13:27 | 5915577 Questan1913
Questan1913's picture

"I don't like what the Fed has done...they've poisoned the economy (like chemo for the cancer patient). But all the calls to "end the Fed" never discuss the next logical step that will occur -- which is that US Congress will take over control of the money printing. And then we will all have a problem that is 1000 times worse than the Fed. The politicians in gov't would like nothing better than to get their incompetent hands on the printers."

A truly classic psyops comment....starting out with "I don't like what the fed has done.." following with 60 words slyly defending the fed and assasinating the constitutional order by referring to the only direct representatives "We The People" control. as incompetent.  By the way this is a familiar disinformation theme you should be well acquainted with as it is repeated over and over throughout the media and culture while simultaneously pushing and subtlely calling for increased presidential (dictatorial) powers.

I suggest we start identifying and calling attention to the techniques used by the oligarchy and its agents to subvert the US constitution, our liberty, and above all our ability to.think and reason.

Sun, 03/22/2015 - 17:29 | 5916184 game theory
game theory's picture

Agent of the oligarchy? Psyops? The only people that want congress in control of the printers are the oligarchs and those connected enough to be waiting for their piece of gov't pork (or cheese depending on your preferred food group).  The loudest complaints against QE have been from some of the wealthiest people. Why? And how does your view on China play into your view on QE and the fed's moves? 

 

Sun, 03/22/2015 - 10:00 | 5915177 sleigher
sleigher's picture

"Are they so dumb to think that that people that created this mess will fix it?"

 

Stop it.  It's hard to think and it hurts.

Mon, 03/23/2015 - 13:29 | 5918480 marathonman
marathonman's picture

Taking the red pill has some unadvertised side effects...

Sat, 03/21/2015 - 21:42 | 5914468 Gadfly
Gadfly's picture

Bingo!

Sun, 03/22/2015 - 07:12 | 5914987 negative rates
negative rates's picture

Would you like some cheese to go with that wine?

Sun, 03/22/2015 - 07:24 | 5914993 SubjectivObject
SubjectivObject's picture

Awwjeez to go with that whine.

Sun, 03/22/2015 - 08:38 | 5915047 negative rates
negative rates's picture

Well I don't do either so it don't much matter to me.

Mon, 03/23/2015 - 08:00 | 5917538 Hayabusa
Hayabusa's picture

Carl is correct!  I'm not even sure why the Tylers would continue to post articles like this w/o some valid and workable strategies to replace the existing FED.  When you have

a lethargic, undereducated reality-TV-Watching, entitlement mentality populace distracted by bread and circuses you are but a lone voice in the wilderness shouting your message

to the empty wilderness... the sheeple are inside consumed by superficial nonsense and upset because they can't figure out why they are unhappy/unfulfilled in life.

Sat, 03/21/2015 - 20:20 | 5914261 Oracle of Kypseli
Oracle of Kypseli's picture

Yes! Who is gonna feed the free shit army?

Revolution in your hands

Sat, 03/21/2015 - 21:57 | 5914502 cornfritter
cornfritter's picture

Well, you fish around for some other king that has an unsustainable free sh*t army, start to starve 'em all, then put rifles in their hands and launch them at each other, as in days of old.  Seems neither the ruling class nor the ruled have actually evolved in what? 25K yrs.?  Reckon we were better off in the trees before the geniuses showed up. :-(  

"Come on down here handsome, we'll show ya how to shave, and give you a better way of life... Ka-Fooking-Blam!!!"

Sat, 03/21/2015 - 23:15 | 5914638 BoNeSxxx
BoNeSxxx's picture

So very sad... Yet so very true.

A system of slaves and masters... Cannon fodder for kings. Sheep and wolves.

Same as it ever was. Maybe (just maybe) global interconnectivity will cause just enough people to say 'eat shit we ain't dying for you assholes anymore'

Yea... I am a romantic and hope springs eternal. Molon Labe bitchez.

Sun, 03/22/2015 - 03:08 | 5914850 El Vaquero
El Vaquero's picture

Better in the trees?  Look at what chimps do if some strange male comes into their territory.  They gang up on him, beat him to death, then eat him.  We just carry on that behavior, but on a much grander scale. 

Sun, 03/22/2015 - 10:02 | 5915185 sleigher
Sun, 03/22/2015 - 09:01 | 5915077 MilwaukeeMark
MilwaukeeMark's picture

The "free shit group" are 'Useful Idiots'. Once they are no longer useful, the free shits stops.

You don't waste valuable lifeboat space for people who can't/won't/never have rowed. You save that space for those who can contribute to future survival.

Sat, 03/21/2015 - 20:20 | 5914262 Latina Lover
Latina Lover's picture

I disagree. I think the USSA is pushing hard for war with Russia perhaps because the Fed Ponzi scheme is unravelling.

Sat, 03/21/2015 - 20:37 | 5914320 dreadnaught
dreadnaught's picture

They are gonna have to raise the debt limit to INFINITY to pay for it all-then after all is destroyed will we see a debt jubillee..... 

Sat, 03/21/2015 - 20:44 | 5914334 A Lunatic
A Lunatic's picture

If there is ever a Jubilee it will be for the Banksters and the rest of the Big Club, which 'We' are not a part of.........

Sat, 03/21/2015 - 22:08 | 5914528 cornfritter
cornfritter's picture

Probably... another thing, a lot of these welfare people coulda had 40 acres and a mule, but p*ssed it away on rent, and shiny trinkets (same can be said for much of the non welfare class too..)  It needs to break, and the moral thing to do is farm!!! I swear, put people to work with hand tools to keep 'em out of mischief.  May seem cruel, but believe me, many have considered the option of "vaccinating" (for safety) and mass graves.  Just not a great idea at all, not the moral play.  Fed needs to go away.  If Mises speaks of truly free banking (no laws whatsoever) - all dictated by law of the jungle, supply and demand, then OK!  See what rises and let the 95% parasites fall.  Give 'em hand tools like I got, sunzabitches.

Sat, 03/21/2015 - 22:19 | 5914549 Urban Roman
Urban Roman's picture

That 40 acres and a mule line was just some bullshit they told the conscripts to get them to sign up.

Nobody (or almost nobody) ever got 40 acres and a mule. They got (maybe if they were lucky) a shitty factory job and an overcrowded slum to live in.

Mon, 03/23/2015 - 23:34 | 5920578 Kobe Beef
Kobe Beef's picture

But your overcrowded slum would now be culturally enriched by obsolete farm equipment, how vibrant!

Sun, 03/22/2015 - 21:02 | 5916728 iofera
iofera's picture

It's all a big conspiracy, isn't it, Bob?

Moron.

Sat, 03/21/2015 - 21:00 | 5914367 Van Halen
Van Halen's picture

In the United States, there are about 3000 of 'them' running 350 million of us off a cliff. Get rid of them and your problems will be well on their way to ending. Who are they? Every one of your highest political representatives in DC, most of your federal agency heads, some state governors, some billionaires, some media and entertainment heads, many banking heads, and a bunch of harder to identify types like your Grubers creeping around making mischief under the radar. If you follow fed money down to some of the big nonprofits or think tanks, you'll find these human devils at the end of those trails too.

Sat, 03/21/2015 - 21:16 | 5914402 Anusocracy
Anusocracy's picture

You will still have government.

Sun, 03/22/2015 - 03:11 | 5914852 El Vaquero
El Vaquero's picture

For better or worse (probably worse,) you are going to have a government if there are enough people.  There are too many sheep and there are too many wolves. 

Sun, 03/22/2015 - 15:00 | 5915400 RaceToTheBottom
RaceToTheBottom's picture

Get rid of the wolves and the next set of wolves will take their place.  It is the human condition.  Most people feel secure having wolves eat them...

Sun, 03/22/2015 - 10:23 | 5915216 TheReplacement
TheReplacement's picture

Yes but if the new government is surrounded by the impaled heads of the old government they will be slightly more careful in their decision making.

Sat, 03/21/2015 - 20:11 | 5914231 bugs_
bugs_'s picture

It should be cut into little tiny <fractional> pieces AND BURIED ALIVE!!

Sat, 03/21/2015 - 20:17 | 5914250 Harbanger
Harbanger's picture

All CB's function on fractional reserve.  Chinas, Russias, all of them, that's what banking is.  The bigger problem is having a single reserve currency.

Sat, 03/21/2015 - 20:11 | 5914232 Katastrofenhausse
Katastrofenhausse's picture

At least the fuckers in Weimar Germany had to physically print the fiat. Now these guys can just type in a number followed by a bunch of zeros and hit enter on a computer terminal.

Sat, 03/21/2015 - 20:22 | 5914267 highandwired
highandwired's picture

I don't think they need to even do that much.  I'm sure the HFT's  take care of the virtual printing nowadays

Sat, 03/21/2015 - 20:30 | 5914299 Harbanger
Harbanger's picture

Yet the collapse of Weimar Germany didn't stop Germany from waging War.  There's a little disconnect here in thinking a financial collapse prevents war.

Sun, 03/22/2015 - 00:03 | 5914708 gadzooks
gadzooks's picture

Thats correct, but who ends up insulated from it?

Sat, 03/21/2015 - 20:11 | 5914236 ZerOhead
ZerOhead's picture

Public Enemy #1

Sat, 03/21/2015 - 20:18 | 5914253 A Lunatic
A Lunatic's picture

Never. Going. To. Happen. Bitchez.......

Sat, 03/21/2015 - 20:20 | 5914260 PeeramidIdeologies
PeeramidIdeologies's picture

Keep pushing this agenda Tyler's, but anyone with half a brian can see that is it the centralization of our social infrastructure that is the real threat. You can ban the central banks if you want but that's not going to solve anything for anyone on Main Street.

Sun, 03/22/2015 - 03:19 | 5914860 El Vaquero
El Vaquero's picture

Centralization tends to make systems less resilient, period.  You can find some things that do well with it, but something that requires more and more complexity to become more and more centralized is going to become more fragile as it becomes more centralized.  Greater complexity introduces more potential failure points, and at some point, starts reducing the number of failures that need to occur before the system comes apart.  You can say that the centralization of our social infrastructure is the real threat, but in reality, the centralization of our currency and economy, food production, etc... are all interrelated.  You can't talk about changing our food production without talking USD, oil, natural gas, the internet, steel, etc...  It is just a few large entities that run the bulk of that, and it is a very complex system. 

Sun, 03/22/2015 - 11:30 | 5915336 PeeramidIdeologies
PeeramidIdeologies's picture

Exactly. And as the berth of that centralized system grows as does it's requirements for self preservation. This is why we have out if control organizations like big Gov, central banking and others. These institutions become so large their capacity to react to their respective markets becomes impossible, so instead they are forced to abuse the power/influence that presides with an operation of that scale.

It shouldn't be this complex. Decentralized social systems would be much more adaptive and efficient. It would also ensure a natural limit to the amount of influence an organization would be capable of enforcing on the people it is designed to serve.

Sun, 03/22/2015 - 12:04 | 5915410 RaceToTheBottom
RaceToTheBottom's picture

It is not the complexity that is the problem, but I agree, bailing wire is not a sustainable solution, it is diversity.  Diverse systems in nature are always more sustainable than non diverse.  Much of our problems in farming are due to removing diversity.  

Therefore I would say complexity alone is not the problem.  It is complexity with central control that is the problem.  If it could self direct/correct that would solve a lot of the problem.  Our arrogance thinks we can remove the need for self correction.  

This is what has driven the attempt to remove the business cycle

Sat, 03/21/2015 - 20:24 | 5914277 disabledvet
disabledvet's picture

So we should be rooting for ISIS?

Sat, 03/21/2015 - 21:47 | 5914458 Gadfly
Gadfly's picture

No, we should be rooting for the day we no longer have to read your inane posts.

Sat, 03/21/2015 - 23:02 | 5914617 Anusocracy
Anusocracy's picture

We should be rooting for the day when the last government employee is strangled to death with the entrails of the last government lover.

Sat, 03/21/2015 - 23:06 | 5914622 nmewn
nmewn's picture

I am ;-)

Sat, 03/21/2015 - 20:24 | 5914279 q99x2
q99x2's picture

Good idea. Why'd it take you over a hundred years to come to that conclusion.

Sat, 03/21/2015 - 20:31 | 5914302 Fukushima Fricassee
Fukushima Fricassee's picture

Destroy it but don't let the fuckers responsible just walk away.

Sat, 03/21/2015 - 20:33 | 5914308 Prober
Prober's picture

FED should have never been created, and FED should be destroyed, BUT it Will NEVER happen, and here is why:

1. The politicians NEED the FED to finance their exponential deficit spending, because =>

2. They need the loot to buy the votes of the hordes of marginally-conscious proletariat with entitlement programs so the politicians can retain power and control, because =>

3. The parasitic proletariat masses will NEVER accept ANY reduction in existing entitlement programs OR ANY reduction in creation of NEW entitlement programs, which requires an ever larger amount of money= GOTO 1

Sat, 03/21/2015 - 21:36 | 5914452 Gadfly
Gadfly's picture

That pretty much sums it up.

Sat, 03/21/2015 - 21:48 | 5914481 Crash Overide
Crash Overide's picture

It's pretty sad really.. they have their fiat boot on our necks.

On a positive note it will eventually end, one way or another.

Sat, 03/21/2015 - 22:13 | 5914537 Fun Facts
Fun Facts's picture

it was an accident.

Sun, 03/22/2015 - 09:16 | 5915090 scrappy
scrappy's picture

The rabbit hole is deep indeed.

https://realitybloger.wordpress.com/2013/08/05/cracking-the-cult-of-the-constitution-part-i/

We will have to review EVERYTHING to get on track. Truth is stranger than fiction.

Survival time.

 

Sat, 03/21/2015 - 22:39 | 5914578 Prober
Prober's picture

It could end tomorrow - all the "Americans" have to do is go to WADC with their "government change tools", but that will never happen because

1. the overwhelming majority of the residents of the USA actually know NOTHING about how anything in the monetary, financial or economic system works

AND

2. they WANT the gummint freebies and don't care how they gits em

 

Sat, 03/21/2015 - 20:33 | 5914310 kchrisc
kchrisc's picture

I'll eat a hat, or a horse, if anyone can substantiate that the FedRes is Constitutional.

The banksters need to repay us.

 

Guillotine the Fed. Audit the heads.

Sat, 03/21/2015 - 20:52 | 5914352 Charming Anarchist
Charming Anarchist's picture

I will eat both if anyone can explain why the constitution matters. 

Sat, 03/21/2015 - 21:53 | 5914496 Kirk2NCC1701
Kirk2NCC1701's picture

Bankster-head soup. With eyeballs.

Served to families and friends of Fed.

Sat, 03/21/2015 - 22:27 | 5914560 Urban Roman
Urban Roman's picture

Chilled monkey brains?

Sat, 03/21/2015 - 20:35 | 5914313 Loophole
Loophole's picture

Fractional reserve banking is not fraud per se because there is no misrepresentation. Denying banks the right to function that way with willing depositors is a denial of the rights of both the bankers and the depositors.

Forcing citizens to use govt issued fiat money violates their rights and makes misuse of fractional reserve banking possible.

Sat, 03/21/2015 - 20:54 | 5914354 Usurious
Usurious's picture

''Fractional reserve lets bankers EARN INTEREST on capital they DO NOT EVEN POSSESS.  This is why banking is inequitable and a societal EVIL.  Bankers and banking should be banned as contrary to public policy.  Let banking become lend your REAL capital, fine.  But every single financial panic, bubble, collapse, all of it, is traceable directly to the feet of bankers who committed fraud.''

trav7777

Sat, 03/21/2015 - 21:20 | 5914410 nmewn
nmewn's picture

Most people are not even aware that a bank (any bank) does not have the deposits on hand (fractional reserve banking) to back what they initiated being loaned out, so therefore it is a fraud, they loaned what is not there to loan. And don't even get me going on "they no longer have the loans on their books" because they sold the loan as an "asset" which is even more ludicrous, if the loan is not paid back is it still an asset? Of course not, it was always a liability.

Fractional reserve banking is very much a fraud.

Sat, 03/21/2015 - 23:40 | 5914683 PeeramidIdeologies
PeeramidIdeologies's picture

This is all banking 101 nwmen. Not to preach, as I know you know, but it's more important to identify through what means this fraudulent behaviour is sanctioned. From there we can establish the required steps to initiate change. Oh, looks like a group of like minded citizens isn't going to be enough. We are going to need funding, congress cretins, lawyers, an honest judicial system.

But who stands to benefit? Who stands to lose? I wouldn't say it's as clear cut as one would think.

Why not just provide people with an option? Give them the choice to participate or not. If we all took one step back this whole thing falls down around their ears.

Sun, 03/22/2015 - 08:29 | 5915032 nmewn
nmewn's picture

They get away with this through "the law" and the governments regulatory agencies. At one point in my youth (with a great amount of naivete on my part) I truly believed the law actually meant something, it was sacrosanct, something we all knew, respected and appreciated as a society, to be held above ourselves and bound to it for the common good of us all.

I was completely wrong.

The law is what it always has been, it is authoritarian types assuming they have some monopoly in the use of force, nothing more. The law is, letters of marque sanctioning theft & murder (piracy) on the high seas. The law is, bands of "legalized" highwaymen on land (common robbers with a guns) waiting behind trees to pounce on the unsuspecting traveller for not wearing a seatbelt. The law is, issuing permits & licenses for fees (is that a bribe or tribute?) to build on your own land yet they are not held liable by law for issuing them. The law is, speech codes where if you call a thief a thief, you can expect his lawyer to present you with a slander suit or worse, "the law" come & arrest you for sedition, it is afterall, their law.

Corzine is still not in ass pounding prison. Neither is Rubin, or Carter or McConnell or Barney or pick any.

I was so deeply wrong all I want it to do is burn.

Sun, 03/22/2015 - 08:42 | 5915050 negative rates
negative rates's picture

You see, I wasn't so wrong all this time (30+ years) and now only consequences are to be paid by gvt, enjoy it, it's free too.

Sun, 03/22/2015 - 09:00 | 5915075 nmewn
nmewn's picture

I think it was "for the greater good" that had me roped in for so long, like Spock who voluntarily gave up his life for all the others he loved so dearly, certainly something for all individuals to admire and emulate, one is supposed to take it as.

Key words, individuals & voluntary, he was not forced by them ;-)

Sun, 03/22/2015 - 11:44 | 5915372 PeeramidIdeologies
PeeramidIdeologies's picture

This is the part I don't understand. As far as I can tell the purpose of this website is provide a platform for a bunch a bitter old "unapologetic capitalists" who have all the necessary tools to instigate change, but really just want a place to down their sorrows on a caring shoulder...

SO WHY IN THE FUCK

Do you bunch even humour me?

I have my theories on this but I'm wondering if any of you have the fukin balls to amid it?!? lol

Sun, 03/22/2015 - 19:16 | 5916475 nmewn
nmewn's picture

I would certainly hope a fine young English gentleman like yourself would not be of the opinion that serious people would announce their intentions on ZH, just to humor you ;-)

Sat, 03/21/2015 - 21:34 | 5914444 Gadfly
Gadfly's picture

You have a rather large intellectual and moral loophole.

Sat, 03/21/2015 - 22:01 | 5914509 Kirk2NCC1701
Kirk2NCC1701's picture

The real evil, as I've explained  before, is the triple-curse of

Fiat + FRB + Derivatives. 

Short of a Divine Decree and Divine Action, NOTHING could ensure a steady and unprecedented transfer of wealth from the Many to the (self-chosen) Few.

Sorry, RIP George,  it's a SMALL club, and We The People ain't in it.

Sun, 03/22/2015 - 03:24 | 5914862 El Vaquero
El Vaquero's picture

Fractional reserve banking lets bankers buy politicians and do even bigger fractional reserve banking.  It tends to fuck the general public.

Sat, 03/21/2015 - 20:44 | 5914328 Jonesy
Jonesy's picture

Some Jews will just open the National "Reserve" Bank or similar as the Fed but under different title like they always do.  It's not the Fed, it's the people behind it that must be dealt with.

Maybe we should just open our own ECB, that'll fix everything., complete with different mandates, objectives etc, except that it still exists to transfer wealth to leeches.

Sat, 03/21/2015 - 23:12 | 5914635 FIAT CON
FIAT CON's picture

We need one .gov or maybe the brics to came out with a gold backed currency and honestly gold backed!

Unlike the American one that was temporarily suspended in 1971

I wonder what the world would be like today if when the US closed the gold window it started WWIII, the whole world against the US.

I'd bet it would have been a short war, and on US soil.

I'd bet there would have benn a lot less Countries invaded and a lot less Innocents dead today

 

Maybe a lot more smarter people in the world as well

 

 Hmmm  

Sun, 03/22/2015 - 03:26 | 5914865 El Vaquero
El Vaquero's picture

I'm an extremist - I'd go to straight up PM coins being traded directly. 

Sun, 03/22/2015 - 09:24 | 5915114 Fun Facts
Fun Facts's picture

The FED is already the third central bank of the United States.

When they canned the first Rothschild attempt to enslave us all, it caused the war of 1812.

When Andrew Jackson canned the second central bank of the United States, the dual citizens tried to kill him...twice.

Finally, the Rothschild's FED has succeded in their objective of modern chattel slavery without the leg irons but with debt instead.

Sat, 03/21/2015 - 20:40 | 5914329 Seize Mars
Seize Mars's picture

It's enough. The FED must be destroyed.

Sun, 03/22/2015 - 07:22 | 5914992 negative rates
negative rates's picture

The Fed is desperate, and desperate people will do desperate things when ones back is against the wall.

Sat, 03/21/2015 - 20:43 | 5914333 Uncle Sugar
Uncle Sugar's picture

Seeing a push to put a woman's picture on the $20 bill. I suggest they put Mr. Yellen's picture on it.  Not really a woman, but I think it's fitting since it's a Federal Reserve Note.  Maybe people will start to realize it's bullshit when they see her on it.

Sat, 03/21/2015 - 20:55 | 5914359 Charming Anarchist
Charming Anarchist's picture

If I was The Decider, I would sell advertizing rights on our bills and print anybody's face --- anybody willing to pay for it. 

Sat, 03/21/2015 - 21:11 | 5914383 rubiconsolutions
rubiconsolutions's picture

"If I was The Decider, I would sell advertizing rights on our bills and print anybody's face --- anybody willing to pay for it."

 

Pay for it with what? Money with other faces on it but still fiat? Dumbest comment posted today.

Sat, 03/21/2015 - 23:29 | 5914665 Clowns on Acid
Clowns on Acid's picture

Rubio - I think that he meant that it would be valued just at "face" value....

Sat, 03/21/2015 - 22:37 | 5914574 orez65
orez65's picture

President Andrew Jackson abolished in 1836 the Second Bank of the United States, the equivalent of today's Federal Reserve.

To have a painting of his face on the $20 Federal Reserve Note is, at best, an insult.

It is a fraud because the Fed is using his likeness to historically legitemize countefeit money i.e. fiat money.

Sun, 03/22/2015 - 00:55 | 5914790 Uncle Sugar
Uncle Sugar's picture

You read my mind.

Sun, 03/22/2015 - 09:00 | 5915074 Winston Churchill
Winston Churchill's picture

It just says Jackson.Its actually a picture of Charles Ponzi.

Sat, 03/21/2015 - 20:50 | 5914345 Elliptico
Elliptico's picture

At the least, take away their monopoly.  Make them compete.

Sat, 03/21/2015 - 20:51 | 5914349 Peter Pan
Peter Pan's picture

You can destroy the monster but how do you defuse the ticking bombs of derivatives, low interest rates and masked insolvency?

 

Sat, 03/21/2015 - 21:01 | 5914369 lynnybee
lynnybee's picture

Thank you.      thank you thank you thank you for posting this article.   now, how do we get America to understand what & who is the cause of the misery, poverty, inequality, criminality, malfeasance, looting, & outright THEFT of wealth thru the mechanism of credit & debt.   

Sat, 03/21/2015 - 21:06 | 5914375 Usurious
Usurious's picture

one person at a time.........

Sat, 03/21/2015 - 21:43 | 5914467 DavidPierre
DavidPierre's picture

In 1913 John D. Rockefeller decides to repackage his ruthless self as a great philanthropist and sets up a host of "charities", the best known being the Rockefeller Foundation. Aside from being a clever bit of propaganda, the tax-exempt foundations provide a way of multiplying the Rockefeller fortune completely free of taxation and then using the vast amounts of cash generated, at the taxpayers' expense, to control to a very great extent the direction and focus of science, education, politics, medicine, economics, law, mass media and a thousand other things in the United States and around the world so that everything comes out right, just the way old J.D. would have wanted it.

And so it has come to pass.

And that secret meeting but not a conspiracy of bankers and Senator Nelson Aldrich on Jekyll Island in 1910 bears fruit when the so-called U.S. Federal Reserve Board is formed. The first act to establish the Federal Reserve is drafted by international banker Paul Warburg of Kuhn, Loeb and sponsored by Aldrich, maternal grandfather of Nelson and David Rockefeller.

The Aldrich act is voted down but, just before Christmas 1913, when most Congressmen are conveniently absent, the Owens-Glass Bill is quickly passed, establishing the privately owned company which operates under the deceptive name of the Federal Reserve.

A very nice, multi-trillion dollar Hanukkah/Christmas present for the jew boys in the back room.

The bill is duly signed by Woodrow "Making The World Safe for Bankers" Wilson who had agreed to do so prior to his election in return for massive campaign contributions from the boys.

Contrary to a carefully cultivated popular misconception, the “Fed” is not an agency of the U.S. federal government but is a privately owned company owned entirely by major commercial banking interests largely controlled by a few ultra wealthy families, the usual gang of suspects, in fact.

The identities of the shareholders of the company which creates and controls the American money supply is, as is only reasonable, kept secret from the American public. And, just as reasonably, much of the Fed's financial activity is legally exempt from scutiny or audit by the General Accounting Office (GAO). After all, what right do ordinary Americans have to know anything about the private company which issues all U.S. money and, for all practical purposes, controls the U.S. economy.

Some commentators state that the original shareholders of the Federal Reserve company were the Rothschilds' bank in London, the Lazard Brothers' bank of Paris, the Israel Moses Seif Bank of Italy, the Warburg Bank of Hamburg, London and Amsterdam, the Lehman Brothers Bank of New York, the Kuhn Loeb Bank of New York, the Rockefellers’ Chase Bank of New York and the Goldman, Sachs Bank of New York.

Give me control of the economics of a country
and I care not who makes her laws. Mayer Amsel Rothschild

The Federal Reserve company "creates" all of the U.S. money supply. In the absence of gold or anything else of any value, trillions of dollars are simply invented out of thin air and deemed to exist although they have no more substance, value or real worth than Monopoly money. Printed currency represents only a very small part of the created money. Most of the invented money exists these days only as magnetic impulses on discs in computers, although we all still have to pay hundreds of billions of dollars in interest to the boys in the back room on it.

The imaginary "money" is lent at relatively low rates of interest by the Federal Reserve company to private banks who then lend the recently-invented "money" at higher rates of interest to governments, companies and individuals and they do it not once, not twice, but up to ten times over with the miracle of so-called fractional reserve banking. Yes, Virginia, they lend out the same non-existent money up to ten times over and charge interest every time they do it. And they rake in interest on every dollar of the invented money forever, decade after decade.

The Federal Reserve company kicks back most of the profit of the scam to the federal government which creates the useful illusion that everything is kosher but that's just smoke and mirrors.

The real profit is made at the level of the banks who get the invented money cheap from the Fed and then lend it out to government, business and consumers ten times over. Not one cent of those billions or trillions is kicked back to anyone other than the people who own the banks.

It is a truly miraculous system and very, very profitable. If private individuals do exactly what the private banks of the "Fed" do, it is called counterfeiting.

In addition to making vast fortunes on the invented money, the Federal Reserve gives the boys in the back room almost complete control over the U.S. economy. By increasing or decreasing the money "supply" the boys can inflate or deflate the value of the invented dollars at will. The long term trend is inflation which basically makes the money earned by ordinary Americans ever more worthless.

"If the American people
ever allow private banks
to control the issue of their money,

first by inflation
and then by deflation,
the banks and corporations
that will grow up around them

will deprive the people of their property
until their children will wake up homeless

on the continent their fathers conquered."

Thomas Jefferson
Fascist slave owner and genocidal mass murderer
but nobody's fool.
Sat, 03/21/2015 - 22:37 | 5914575 Lynn Trainor
Lynn Trainor's picture

Reminds me of Bill Gates.  You hit it big and suddenly are qualified to make pronouncements and dish out advice to the world on everything from Global Warming to how many billions should be allowed to populate the earth.

Sat, 03/21/2015 - 21:09 | 5914378 honestann
honestann's picture

To destroy the federal reserve without destroying fiat, fake, fraud, fiction, fantasy, fractional-reserve debt-notes does not solve the entire problem.  It may partly solve the massive manipulation of the "market" via private collusion of the federal reserve and large financial corporations... or it may not.

But as long as the predators-DBA-government can print unlimited paper or digital currency, the budget will never be controlled and hyperinflation will still occur (as it eventually will with the federal reserve).

The ONLY way for a sane, viable, mostly-just economy to exist is... for trades to be trades.  That is, in EVERY trade between EVERY part is a trade of real, physical, valuable goods for real, physical, valuable goods.  Which can be any goods, but are historically "grams of gold" [and silver].

Also, "paper gold receipts" are not acceptable.  They could be acceptable if some automated and massively redundant system existed to make 100% transparent that no more "paper gold receipts" could ever possibly exist than the physical gold in storage to back that gold.  But even that is not workable in the modern ultra-corrupt age, because that physical gold would be re-re-re-re-re-re-re-hypoticated to death, causing the same problem that now exists (fiat, fake "value" out of thin air).

So sure, the federal reserve needs to go.

And so do "governments".

And so does fiat.

Sat, 03/21/2015 - 21:15 | 5914398 Uncle Sugar
Uncle Sugar's picture

I expect the SDR to be the next reserve currency and I won't live to see the whole house of cards come down. Damn.

Sun, 03/22/2015 - 07:25 | 5914994 negative rates
negative rates's picture

Neither will she.

Sat, 03/21/2015 - 21:50 | 5914488 FIAT CON
FIAT CON's picture

Great post honestan!

You know what the problem is! but how can we teach the people?

 We need to get the 100th monkey to understand this!

Then the rest will follow like sheep!

 

Sun, 03/22/2015 - 07:29 | 5914997 negative rates
negative rates's picture

She is a big part of the problem, talks a good tangle, but reverse psycological financial tentacles eventually come back to strike the ones speaking them. Me, I just use the carry trade and throw my gold into the lake to be recovered another day.

Sat, 03/21/2015 - 22:12 | 5914532 Reaper
Reaper's picture

The sheeple don't want to think. The sheeple want to trust. The media wants to believe. The Fed gives away a trillion dollars a year of the people's money. To whom? Cui bon? Power corrupts. A trillion dollars to give away corrupts absolutely.

There is no honest banker. No honest politician. No honest judge. Power corrupts. Cash corrupts. The greatest heresy of economic planning is that any banker can be trusted with a trillion dollars a year (Lord Acton paraphrased.)

Sat, 03/21/2015 - 22:32 | 5914566 Urban Roman
Urban Roman's picture

Exactly.

Not the building, nor even the people.

It is the idea that must go.

Sat, 03/21/2015 - 22:42 | 5914584 orez65
orez65's picture

"Also, "paper gold receipts" are not acceptable."

"Paper gold receipts" may be acceptable if they are redeemable on demand.

Mon, 03/23/2015 - 21:08 | 5920228 honestann
honestann's picture

That's not sufficient when all organizations are utterly corrupt.  And today they are for all practical purposes.  The problem is... human beings SAVE.  And ALL of history has shown that human predators WILL lend out the gold that supposedly those pieces of paper can redeem.

That's what "fractional reserve banking" is.

WHICH CANNOT WORK.

 

Sun, 03/22/2015 - 12:17 | 5915436 RaceToTheBottom
RaceToTheBottom's picture

When a paper future of "something" can control the price of the "something", the "something" has no real price discovery or even value.

Posession has to be at the base, layers above that only devalue the base value.

Sat, 03/21/2015 - 21:12 | 5914387 Sanity Bear
Sanity Bear's picture

And this is why Andrew Jackson is my favorite President, despite some of the other things he did which were pretty horrible. In the biggest of big pictures he knew the enemy, and slew it.

Sat, 03/21/2015 - 22:49 | 5914598 Anusocracy
Anusocracy's picture

He didn't get rid of the government. It went on to kill 750,000 in the War of Southern Secession.

Like you and most everyone else, he didn't know what the real enemy is.

Sat, 03/21/2015 - 23:13 | 5914637 Sanity Bear
Sanity Bear's picture

south of Maryland it's called "The War of Northern Aggression"

Sun, 03/22/2015 - 03:31 | 5914869 El Vaquero
El Vaquero's picture

He actually strengthened the office of the presidency.  Something about outright ignoring a SCOTUS ruling and then marching a bunch of innocent people until they died.  IIRC, a bunch of people shed tears on those trails that they were marched down.

 

Jackson was a walking contradiction.  His compassion was only matched by his hatred.

Sat, 03/21/2015 - 21:14 | 5914395 oncefired
oncefired's picture

Dictate that the FED buy all the outstanding debt, once on the balance sheets. Revoke their Charter!

Sat, 03/21/2015 - 22:04 | 5914514 Mandel Bot
Mandel Bot's picture

Nailgun the Fed

Sat, 03/21/2015 - 22:05 | 5914516 Wahooo
Wahooo's picture

Lending must be destroyed and made illegal. No debt, no borrowing allowed.

Sat, 03/21/2015 - 23:00 | 5914616 dexter_morgan
dexter_morgan's picture

lending of money based on nothing created from nothing must be detroyed. 

Sat, 03/21/2015 - 22:06 | 5914518 malek
malek's picture

I thought it's Carthaginem esse delendam

Well ok, my latin is a bit rusty.

Sat, 03/21/2015 - 22:43 | 5914579 MEFOBILLS
MEFOBILLS's picture

Patrick Barron (author):  this notion of 100 percent reserves still maintains a dual loop system for banks, where bank money issued is still credit, but it is backed by treasury notes held in reserves.  This is an unnecessary double action.  Private "for profit" bank credit still gets it credit issuing authority via treasury/government sanction.

Huber has worked out double entry mechanics for a single circuit wealth money sytem; also mechanics have been worked out for an updated 100% reserve system (credit), that avoids some of the systemic faults overlooked by fischer.

Also, getting rid of the FED does not anchor the money power in law.   It leaves a vacuum, and nature abhors a vaccum.  Andrew Jackson found out about that the hard way.

There still needs to be a monetary authority anchored in law and morality.  Private, for profit banks, are rent seeking operations by definition, where the issuance of bank credit and its usury redounds to them.

By contrast, a superior sovereign system has fee based private banks, which loans out saver's wealth money.  This has interest cycling back to saver from debtor .  Neighbors and citizens are debtors/creditors with each other, as per our evolutionary heritage.  The banker is only a third party middle man, transferring our money per our wishes....Banker does not create credit money, he is forbidden by law.  

In a sovereign system, creditors are savers and since they are neighbors and family members, they may make non usurious contracts, or forgive loans, especially if a venture turns sour.

Sovereign wealth money initially channels into the economy through households, or into the commons by law.  Where is the profit motive?   Households are NOT favored special interests, and there is no profit motive to be gained by issuing into money supply in this fashion.  From then on, wealth money can become citiizen's savings, used as a needed transaction medium, or taxed out of money supply to fund government. It becomes a permanent non-vanishing money type, and hence it is low cost and low friction.  Private bank credit cannot fulfill this function, as it vanishes upon loan payback.

Some credit is necessary to front load supply chains, and to account for S shaped curve of all economies; but to suggest that private banks become wonderful with 100 percent reserve, is not an advanced concept.

 In a sovereign system, private banks may issue sovereign credit in accordance with guidlines which benefit labor and the nation's people.  This sovereign credit provides necessary elastiity required as all economies are fluctuating/dynamic in nature.  A pure sovereign money system could have an unwanted effect of people hoarding their wealth money in the event of disaster, and sovereign credit could be used to counterspend in that scenario.

Money is law, is part of the commons, and money power should be held by a country's citizens....not private for profit banks.  Any real money system should reflect the reality that we all use money to trade with each other; it is ours, and it especialy should not be created as credit by a private cabal of for profit bankers.

Many for profit private bankers are animated by religion and philosophy at odds with America's founding, and are hostile to the idea of a free people in a Federal Republic. Why would we even entertain giving "credit" money power to these secret cabals, so they can in turn host us and become a shadow government through usurpations?

http://www.sovereignmoney.eu/

Sat, 03/21/2015 - 22:45 | 5914586 Lynn Trainor
Lynn Trainor's picture

The fall of the bloodsucking parasite known as the Fed can not happen soon enough - it has been a curse to America since the day it was forced down our throats through lies, deception and murder.   

Sun, 03/22/2015 - 00:31 | 5914755 Duc888
Duc888's picture

 

 

 

Fed still answers to BIS.

Sun, 03/22/2015 - 00:43 | 5914772 teslaberry
teslaberry's picture

you will have to destroy the CIA before they allow you to destroy the fed. 

 

you cannot get rid of the fed without inducing a shock to the military industrial complex---even if you just stop paying out SS checks. 

 

the shock to the system will cause major fallout for the MIC and they won't let that happen so long as the CIA can pull files on anyone trying to undercut the fed. 

 

think about how the KGB put gorbacheve under house arrest and tried to get him  to sign papers to form a new government rather than allow him to allow the soviet union to collapse through perestroika 2.0 reforms.

 

the kgb was amatuer hour. the modern day cia/nsa are the real pros. you gotta go through them first. gorby called their bluff , because he knew that killing him would be bad for them.

 

our cia isn't going to put themselves in a corner like that.

jfk 2.0 can happen all over again and the modern moron american public would go along with every last retarded piece of fake news coverage explaining how an american president died of x,y,z all perfectly normal.

 

mr. hunt has his equals in the modern american goverment.  

Sun, 03/22/2015 - 01:14 | 5914796 essence
essence's picture

How many out there have given any thought to what should replace the Fed?

Assuming for an instance that the Fed was shut down (and leaving aside the issue of ensuring a less than catastrophic transition from Fed Notes & T-bonds to something else),  how should a replacement system be structured?

Perhaps the easiest and least prone to corruption is for government to be Laissez Faire, to have little or no say what so ever in banking,credit & money. While the government might then allow any and all forms of activities, it would need something for it's own dealings (payroll,taxes,etc). Even if multiple new currencies/banking systems sprung up, it would be exceedingly awkward for government to attempt to budget and operate using more that one currency.   Perhaps it could keep the fiat dollar, have the Treasury issue it directly,yet NOT have any legal tender laws mandating dollar usage by the public (outside of paying taxes).

A truly Laissez Faire system would be one here NO bank charter/rules/regulations existed that pertained solely to banks. If a 7 year old selling Lemonade wished to start a Bank and issue currency ... there would be no legal impediments.  Existing Banks that use fractional reserve and charged interest on loans would then have to compete with any and all new entries, perhaps FULL Reserve Banks, State or Not For Profit entries that had zero or negligible interest, Banks that issued Gold/Silver currencies, Bitcoin currency..... whatever.  New comers wouldn't be handicapped by regulations/charters/requirements because there wouldn't be any.  Shysters might come and go, just as in any business, however, just as with regular businesses, reputable firms would stand out and prosper.

-----

Of course, as many of us know, there's powerful, malicious people out there that would quickly act to front run & subvert a Fed shutdown. They would be there with their 'solution' in hand, pressing Congress to pass it unread. This just makes the thought experiment I outlined above even more valuable.

How are folks supposed to assess and determine a post Fed world if they haven't given any thought to the pros & cons of possibilities.

 

 

Sun, 03/22/2015 - 01:18 | 5914798 boooyaaaah
boooyaaaah's picture

We watch republican office holders try to show they are different from the dems.

They say they will lower taxes. Taxes. Big gov dont need no stinking taxes. They can borrow all they need from financing debt.

So who is kidding who.

The lower tax bs must be an agreed to pirouette between professional wrestlers 

And the other pirouette is welfare os there to help.

Both bs are there only to get votes

Thats all they need us for. Taxes which once controlled the purse strings are a formality. For that matter the vote will become a needless formality as happened in Rome and every other republic once tyrants figure it all out 

Sun, 03/22/2015 - 01:43 | 5914810 scatha
scatha's picture

FED was created to finance WWI just 9 months before its beginning.

And while at it, it financed WWII and all other wars since. Hundreds of trailer trucks loaded with printed $ cash (100 bucks) are being shipped as we speak all over the world to finance rainbow revolutions, coupes or just murder and propaganda and that's only fraction of what is done electronically. Benign looking FED Mamma, represents nothing but gang vicious bullies and killers set of world destruction with dollar as a weapon . One may say that dedollarization process currently under way is a form of peace process, protest against aggression and war.

Interesting take of FED I found in:

https://contrarianopinion.wordpress.com/2015/01/28/liquidity-of-blood-sw...

 

Sun, 03/22/2015 - 03:26 | 5914864 blindman
blindman's picture

Yes, the news­pa­pers were right: snow was gen­eral all over Ire­land. It was falling softly upon the Bog of Allen and, fur­ther west­wards, softly falling into the dark muti­nous Shan­non waves. It was falling too upon every part of the lonely church­yard where Michael Furey lay buried. It lay thickly drifted on the crooked crosses and head­stones, on the spears of the lit­tle gate, on the bar­ren thorns. His soul swooned slowly as he heard the snow falling faintly through the uni­verse and faintly falling, like the descent of their last end, upon all the liv­ing and the dead.

The Dead
James Joyce

Sun, 03/22/2015 - 03:47 | 5914879 shouldvekilledthem
shouldvekilledthem's picture

Peak idiocy.

The fed does what it can because the plebs let them. There are no breaks on this clusterfuck.

bitcoin is the only way out from this madness.

Sun, 03/22/2015 - 04:57 | 5914921 totemt
totemt's picture

They are The Cause of the last 3 market blowups and will certainly be the cause for the next.  They are simply killing capitalism.

Sun, 03/22/2015 - 05:41 | 5914937 Batman11
Batman11's picture

"The scales would eventually fall from the eyes of both politicians and public as its becomes clear that what government spends comes at the expense of the private economy."

This is the thinking that led to austerity in Greece.

It didn't work, the private sector does not rise to fill the gap.

Prior to 2008 "wealth creators" were responsible for the success of the economy.

When the going gets tough "wealth creators" and the private sector hide leaving national institutions, Central Banks and Governments, to sort out the mess.

Not that fractional reserve banking isn't dangerous, it is.

All bankers are idiots who get blinded by short term profits and forget about long term consequences.

In a Capitalist system all Wall Street's investment banks would have got wiped out in 2008.

The sub-prime fiasco involved retail bankers and investment bankers.

Central bankers then stepped in after the crash to try and undo the damage but are just paving the way for the next crisis.

Bankers are hopeless ........

 



Sun, 03/22/2015 - 05:49 | 5914943 sarz
sarz's picture

The real issue is that "virtually all money is supplied into the economy as a debt owed to the corporate banking system." (Prosperity: Freedom from debt slavery) There is a very different solution proposed here than in the article, and certainly more workable. See also Ellen Brown's Web of Debt.

Sun, 03/22/2015 - 06:06 | 5914948 Batman11
Batman11's picture

"Money production must be moved to private hands that are subject to normal commercial and criminal law, where money printing is nothing more than counterfeiting."

The FED does create money as we know, but private banks also create money out of thin air too.

Private bank money creation leads to their party trick of the asset bubble, ponzi scheme.

1) 1929 - US stocks

2) 2008 - US housing

Ensure you have a bonus scheme that pays out on profits with no penalties for losses.

Choose an asset to turn into your ponzi scheme (eg: US stocks, US housing).

Create money to lend out for people to invest in the asset bubble ponzi scheme.

Generate massive profits and bonuses as asset bubble inflates.

Ensure money is safely tucked away before bubble bursts.

Bubble bursts with wholesale money destruction.

 

James Rickards in Currency Wars gives some figures for the loss magnification of complex financial instruments/derivatives in 2008.

Losses from sub-prime - less than $300 billion

With derivative amplification - over $6 trillion

Note how derivatives make the bankers asset bubble, ponzi scheme even more dangerous and can turn a national crisis into a global crisis.

 

Sun, 03/22/2015 - 08:10 | 5915018 orangegeek
orangegeek's picture

Disagree. 

 

Remove the Fed and then some gubbamint reprobates will likely create something else in its place that will likely be worse.

 

The Fed offsets bankers who can tighten liquidity and strain an economy.

 

The problems with the Fed are:

 

- the head is appointed by the US President - the Fed is now a tool for gaining re-election under the fraud of "economic policy"

- the Fed is not audited - how an multi-trillion dollar entity is not audited in day and age is criminal

- the control of the Fed is in the north east (New York), a predefined formula (similar to electoral vote rebalancing amongst states) needs to be implemented and rebalancing every year should occur

- the Fed should not be engaged in employment tampering nor interest rate control - this is tampering is designed to get incumbent governments re-elected and has nothing to do with reality

 

Barry won't even come close to fixing any of this - he's a useless communist.  It will come from a different party and likely after we are in a depression beyond reproach.

Sun, 03/22/2015 - 08:30 | 5915033 theprofromdover
theprofromdover's picture

A good start might be to tell your elected representative to balance the budget.

 

 

 

(unfortunately nobody wants that)

Sun, 03/22/2015 - 08:34 | 5915041 Thirtyseven
Thirtyseven's picture

but but but...I was told openly talking about the federal reserve was anti-semitic, and that's a big "no no" for us sheeple.

Sun, 03/22/2015 - 08:44 | 5915054 negative rates
negative rates's picture

They can "tell" you "anything".

Sun, 03/22/2015 - 09:00 | 5915073 eishund
eishund's picture

I saw the word CATO and my mind thought of the word KOCH.

Sun, 03/22/2015 - 09:02 | 5915078 eishund
eishund's picture

Ya, dismantle the bank that prints USDs to usher in the bank that prints SDRs. Brilliant idea. /sarc

Sun, 03/22/2015 - 09:24 | 5915113 TNTARG
TNTARG's picture

"Delenda", "dElenda".

 

A proposito...

https://www.youtube.com/watch?v=43kzuT5VhGc

(Franco Battiato - "Delenda Carthago")

Sun, 03/22/2015 - 09:30 | 5915124 Its_the_economy...
Its_the_economy_stupid's picture

Shiney......yes it all comes back to the derivatives of shiney. Derivatives,,,,weapons of mass destruction.

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