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End The Fed

Tyler Durden's picture




 

Submitted by Bill Bonner of Bonner & Partners (Annotated by Acting-Man.com's Pater Tenebrarum),

A Dismal Share

The Dow fell back below 17,000 on Wednesday, after Wal-Mart warned that it was having trouble selling things to people with no money – at least online. Its e-commerce efforts don’t seem to be paying off as quickly as it hoped. Why?

 

WMT

A bad day for WMT on the heels of a bad year for WMT – neither do its customers have enough money to buy stuff, nor is WMT able to keep its margins intact while raising the salaries of low-skilled workers (which it has done preemptively to head off even greater demands) – click to enlarge.

 

There are about 100 million people in the U.S. who earn about the same average wage as the people of Argentina, Estonia, or Bosnia-Herzegovina. Here’s President Reagan’s former budget advisor David Stockman in the Daily Reckoning:

“[A]ccording to the Social Security Administration’s wage records, there were 100 million workers who held any kind of paying job during 2013, who earned a collective total of just $1.65 trillion that year. That amounts to the incredibly small sum of just $16,500 per average worker. And not for a small slice of the labor force but fully two-thirds of all Americans with a job.”

 

Employment rate working age population

Employment rate of the working age population – everything is not alright – click to enlarge

 

And according to our old friend Jim Davidson, the U.S. now has wealth inequality rivaled only by Russia. There are a few people at the top earning a lot of money. And there are a lot at the bottom earning little money. Jim elaborates in his soon-to-be-released book, tentatively titled The Breaking Point:

“Evidence of how far the bottom 50% of America’s wealth distribution has fallen comes from Credit Suisse in its 2014 Global Wealth Report. As interpreted by Mike Krieger, the data show that the bottom half of America’s wealth distribution ranks dead last among 40 major economies, with “just 1.3% of national wealth. Only Russia comes close to that dismal share, at 1.9%.””

At the Diary, how much other people earn is none of our business. And we have no truck with those who urge the feds to “do something” – by which they mean take away money from rich Peter and give it to poor Paul.

The feds are not very good at it. Much of the money sticks to their hands. Also, Peter has friends in high places. Speaking fees, lobbying jobs, campaign contributions – when Peter talks, the feds listen.

Besides, we’re suspicious of the feds’ motives. The common critique of Fed policy is that it was a “mistake” to push down rates so low for so long. And now, the poor federales are having trouble getting rates up off the floor. Last month, Janet Yellen – supposedly in good faith – believed the world was not ready for it.

 

Yellen_dove_09.17.2014_large

FOMC meeting

Cartoon by B. Rich

 

Larceny and Fraud

At the Diary, we don’t believe the feds have committed an error; we believe they’ve committed a crime. Larceny and fraud are the ones that spring to mind. Though we suspect a good prosecutor could tag them with counterfeiting and embezzlement, too. Throw in money laundering, conspiracy, and jaywalking – now you’re looking at 10 to 20 in the big house.

The essence of larceny is taking something that doesn’t belong to you without permission. Imagine the poor retiree. He has saved his money all his life. Now, in his twilight years, is he not entitled to his recompense?

But instead of earning a decent rate on his savings, he gets the ultra-low rate that is fiddled by the feds. He gets almost nothing. This is not just an abstract point to be argued by economists. It is theft.

Think of the aging person who had $100,000 saved in 2007. If he had earned 4% a year on his money, he would have earned $28,000 in interest since then. But if he got only 1% (or less), he would be short $21,000. What happened to it? Who took it?

 

crony_capitalism

It sure went somewhere…

Cartoon via rocklandvoice.com

 

End the Fed

There are two parties to robbery – the taker and the takee. We have seen what happened to the victims. They are too busy picking through trash bins to go to the Walmart website. But what about the takers?

They are busy too – lobbying… eating foie gras and caviar… and offering to save the world with increasingly radical monetary policies. They are, of course, those who pay net interest, not those who earn it. Who exactly?

The U.S. federal government is the biggest debtor in the world (in terms of the total dollar amount owed). Who gained the most from the federales’ policy? The federales themselves. And who else?

The cronies, of course – Wall Street and corporate America. They were rich before the massive intervention began in 2008. Now, they are much richer.

 

3_Branches_of_Govt_Greed_Cronyism_Propagnada

Even Billy knows…

Cartoon byStan Fill

 

“You complain about all this stuff,” said one of the attendees on our Money Week investment cruise last week, probably speaking for thousands of readers.

“But you never offer any solutions. What would you do about it?”

“We would do nothing. We would undo a lot,” we replied.

The first thing we would undo is the Fed’s control of the financial system. Let takees get the interest they are entitled to. And let the takers get what they’ve got coming to them.

 

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Fri, 10/16/2015 - 12:20 | 6675431 gdogus erectus
gdogus erectus's picture

Is there an echo in here?

Fri, 10/16/2015 - 12:23 | 6675441 Tonald J Drump
Tonald J Drump's picture

>>>>  END THE FED

>>>>  ALL HAIL THE HONORABLE FED !!

Fri, 10/16/2015 - 12:29 | 6675471 Groundhog Day
Groundhog Day's picture

Maybe the Moon is one big satelite dish and we are all on a reality TV show for intergallactic entertainment.   Gods, Games, Violence, Peace, Stock markets, races, poor, rich....what is gonna happen next (kinda of like the truman show)...stayed tuned

Fri, 10/16/2015 - 12:21 | 6675435 Zero-Hegemon
Zero-Hegemon's picture

The FED is staffed by cockroaches, they do everything in the dark and are very hard to kill. Would not surprise me one bit if they were still around long after the human species evolves or has gone away.

Fri, 10/16/2015 - 12:22 | 6675437 LawsofPhysics
LawsofPhysics's picture

Congress could end the Fed's charter, of course CONgress is fully owned by the Fed and it's primary dealer banks!!!!

Roll the motherfucking guillotines!

NOTHING changes otherwise.

Fri, 10/16/2015 - 12:37 | 6675507 goldsaver
goldsaver's picture

Congress would NEVER end the Fed's charter, they can't. The Fed provides "currency" which allows them to pursue wars (both foreign wars for energy and control, and domestic wars on the people, so called war on drugs, war on poverty, etc) Without the Fed, the Federal Government would have two choices, either return to real money (gold and silver) or return to Sovereign Currency ( the Treasury printing all currency) The first is not possible, there's not enough gold and silver in the planet to allow the Fed to retain its power and continue its pursuit of eternal war. The second will never happen. Banksters control the currency which means they control the government. Elected politicians know that they need money to stay in power, both to run their campaigns and to bribe the electorate. They also know that after "serving" in positions of power, they lack any marketable skills, other than influence peddling, so they depend on the banksters to provide for their post public lives.

THe only way the Fed would end is for the Federal Government to end. Not happening.

Fri, 10/16/2015 - 12:50 | 6675563 LawsofPhysics
LawsofPhysics's picture

Bullshit.  "Money" can and has constantly been redefined. What part of all fiat will die don't you understand?  It will happen regardless.

Fri, 10/16/2015 - 13:41 | 6675803 JRobby
JRobby's picture

The current monetary system will only end after a population reduction event (large scale war)

If the people want it to end sooner, like now, they will need to get their fat sheep asses up off the fucking easy chair and march in mass to restore this current false republic to a real republic.

 

(Smegmy Cockinass, a some time ZH follower and commenter, down votes this comment and goes back to eating a processed sugar snack item out of a petrochemical bag, and turns his attention to the TV)

Fri, 10/16/2015 - 13:48 | 6675835 goldsaver
goldsaver's picture

My statement was that CONGRESS will not END the FED. What part of that is bullshit?

As to whether fiat money will die, of course, eventually it will be replaced by a different fiat (see Wiemar) probably purely digital. Any  currency, in order to circulate must have two characteristics. Be generally acceptable as a form of payment for goods and services and be acceptable for international trade. Very few people today produce all goods and services they need or desire, some form of trade is needed. In order for trade to occur, some acceptable system must be in place. In most human based economies, personal trust serves as "currency". In monetary based systems, some sort of currency, whether credits, tally sticks or digital currency is used. Similarly, no country produces 100% of goods and services it needs or desires. International trade is then needed. Some monetary mechanism is needed for the trade.

 

Fri, 10/16/2015 - 14:21 | 6675853 JRobby
JRobby's picture

There can not be a monetary replacement (collapse, chaos, stability) with the current number of humans that inhabit the planet. The sheer number of pissed off desperate people is too much of a perceived threat to the oligarchs. Their numbers will be reduced dramatically first.

Clear explanation of the current central bank lunacy.

Fri, 10/16/2015 - 12:53 | 6675579 Bill of Rights
Bill of Rights's picture

Please provide your findings...or is this just lip service...

Fri, 10/16/2015 - 13:29 | 6675749 metastar
metastar's picture

There is plenty of gold to back the currency in circulation if the price per ounce is high enough.

Price per ounce = Total of all currency physical or otherwise / number of ounces in Fort Knox.

Shit! I just got a DIV BY ZERO!

Fri, 10/16/2015 - 14:41 | 6676109 goldsaver
goldsaver's picture

Let's assume that the currently reported amounts of gold are true (HA!) for this exercise.

According to the US Treasury (https://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm ) there are 13,452,810.534 troy ounces of gold held by the Federal Reserve and another 248,046,115.696 troy ounces held by the US mint. (I am generously combining both amounts although the Federal Reserve held gold is not owned by the US government). Current street value of all that gold is $11,041,059,957.46. 

The US GDP was $17,418,930,000,000.00 ( http://www.statista.com/statistics/263591/gross-domestic-product-gdp-of-... ) Clearly, the value of gold as related to dollars would have to go up, or stated correctly since dollars would not exist as paper assets but as their value in gold, the purchasing power of gold would have to equal $70,225 per ounce in order to have enough basic liquidity for the US market. And we are assuming actual gold in circulation, not paper notes backed by the full faith and credit of the US military.

So, problem number one, gold would have to go from the current $1183.50 per ounce to $70,225.00, a 592 times increase.

Secondly, since we would be using gold as currency ( symbol and means of trade), some of that gold would be used by US consumers to purchase the latest Chinese iCrap and others would have to pay for US products in gold. So,assuming a static economy ( not realistic but easier to represent) the US trade deficit for 2014, according to the S Census (https://www.census.gov/foreign-trade/statistics/historical/gands.pdf) was $508,324,000,000.00, meaning that $508 Billion dollars left the US shores. At $70,225.00 an ounce, 7,238,504 ounces of gold left the US. That means that there are now 7 million ounces of gold less in circulation. You can see how this would inflate the value of the gold, benefiting those who hold gold but destroying those who are still working and slowing down the economy. And eventually, the gold would be gone from our shores.

Third, and more important to my previous comment, the limited amount of gold would by its nature limit the Federal Government's ability to wage war. Since the state depends on war, they would have to invade countries with gold in order to continue financing future expansion ( see Spain during the conquistadores era, or England, France, et al)

No, the CONGRESS will never return to gold.

Fri, 10/16/2015 - 14:49 | 6676165 justdues
justdues's picture

Why the downvotes on Goldsaver ? thats a pretty truthful take on the current situation

Fri, 10/16/2015 - 13:00 | 6675608 Money Counterfeiter
Money Counterfeiter's picture

I prefer rope and trees.  Let them twist in the breeze.

Fri, 10/16/2015 - 12:30 | 6675445 Fukushima Fricassee
Fukushima Fricassee's picture

Turn the FED building , capitol and white house into prisons with everyone inside and throw away the key.  Once all these fuckers are locked down we can go after the deep state.

Fri, 10/16/2015 - 12:27 | 6675453 PrimalScream
PrimalScream's picture

the System can't be fixed, until it tumbles down.  A crooked system run by crooked people - does not mend itself.

The best I suggestion that I have seen about how to replace the Fed came from Financial Advisor Mike Shedlock.  He noted that the Interest Rate could be determined by free market forces.  So it would work as follows:  People establish a set of bounds for the Interest Rate ... say between 3-8%.  And the interest rate floats within these bounds, but the rate is determined by the Free Market itself.  The challenge is to find a "mechanism" that best sets the rate value, based upon market forces.  This includes making sure that the rate cannot be influenced by leveraged players holding large sums of money.  BUT all of this is possible!!

Back to basics.  America cannot return to a Free and Fair system until the citizens demand that this happen.  And practically ... the System can't be fixed, until it tumbles down.  

Fri, 10/16/2015 - 13:05 | 6675629 Money Counterfeiter
Money Counterfeiter's picture

Here is a list of banking regulations needed for a free economy and prosperity.

 

.

Done. 

Fri, 10/16/2015 - 12:30 | 6675479 madbraz
madbraz's picture

the writer should not exclude himself from this group, the caviar eaters, as he constantly reminds his readers and moron clients that he is in Paris, he is in a cruise in the mediterranean, he is in his enormous ranch in argentina.  he may think he is different but he is made from a similar fabric.

Fri, 10/16/2015 - 12:44 | 6675490 lester1
lester1's picture

 I am convinced the Fed is has been buying stocks. Look at all the bad economic data that has come out yet stocks still go up?

The Fed is getting desperate and is doing stealth QE buying stocks on a daily basis through their proxies Goldman Sachs, JP Morgan Chase, and Morgan Stanley. Only the Fed could pull off a +500 point stock market reversal in just a few hours. The stock market is all they have left to hang their hat on. They will go beyond their legal authority to keep it from crashing. Call it the Fed put.

 

The Fed already buys bonds. What's to stop them from buying stocks too ?

 

There is a YouTube video ftom 2009/2010 where congressman Alan Grayson asks a Fed official if the Fed ever tries to manipulate the stock market. The official played dumb and didn't answer the question. It was pretty profound.

 

Time to Audit the Fed !!!

Fri, 10/16/2015 - 13:06 | 6675631 Money Counterfeiter
Money Counterfeiter's picture

Pretty sure anyone reading ZH knows this.

Fri, 10/16/2015 - 13:25 | 6675732 SillySalesmanQu...
SillySalesmanQuestion's picture

Frontrunning Every Dip

Fri, 10/16/2015 - 12:34 | 6675496 Dr. Engali
Dr. Engali's picture

Yeah, good luck with that. The only way the fed will meet its demise is either by its own arrogant errors or by an external force. The Merikun people are too busy with important things like watching the stupor bowl or eating Cheetos.

Fri, 10/16/2015 - 12:59 | 6675586 withglee
withglee's picture

I'm all for ending the Fed. They've had 100 years to come up with a proper process for managing our Medium of Exchange. They clearly are clueless.

  • They have "never" monitored defaults.
  • They set interest collections arbitrarily.
  • They have a goal of 2% inflation when it should be 0%.
  • And they have delivered 4% inflation resulting in a 1913 dollar now worth about 4 cents.

That's not good.

They have also been given (and accepted) bad marching orders. They should not have any interest in prices. Prices are determined by traders knowing inflation of the MOE itself is 0%. They should not have any interest in employment rates. A properly managed MOE process will yield a vibrant market and full employment all by itself.

So once we get rid of the Fed, then what are you suggesting?

Fri, 10/16/2015 - 12:34 | 6675497 The Wizard
The Wizard's picture

When we look at all of the characters in the Republican race, which one is most supportive end the FED? It shouldn't take a rocket scientist to figure out who it is and why TPTB are attempting to neutralize him. They did it to his father.

Fri, 10/16/2015 - 12:51 | 6675573 withglee
withglee's picture

So we're supposed to guess "Rand Paul", right? And when he ends the Fed, then what's he going to do?

Fri, 10/16/2015 - 13:07 | 6675623 The Wizard
The Wizard's picture

Based on my understanding he would begin to decentralize the power of DC back to the states. That is a move that is necessary and would be most advantageous to returning the country to its founding principles. Are you up for that or not? Maybe you like a centralized power structure that many of the founders warned us about.

Unlike most Presidents, he would not use unconstitutional Administrative Law to accomplish this task.

Fri, 10/16/2015 - 13:40 | 6675796 Ace Ventura
Ace Ventura's picture

Yet.....he would continue the unconstitutional and uber-tyrannical War On Terror (TM), as well as continue forking over billions in foreign aid to certain 'allies'. Funny, his dad seemed to understand that this too was unconstitutional, not to mention insane in the face of a bank account balance of $-18 trillion.

So, ending the fed is NOT on Rand's agenda....but rather a 'vigorous audit'. Ummm.....yeeeahhh.

Fri, 10/16/2015 - 15:27 | 6676360 withglee
withglee's picture

he would begin to decentralize the power of DC back to the states.

Excellent. I wouldn't stop there. I'd decentralize the states back to the counties.

Unlike most Presidents, he would not use unconstitutional Administrative Law to accomplish this task.

So how's he going to get the Supreme Court to follow the law? If he can do that, maybe he could get them to read the commerce clause with its obvious and narrow meaning as well. The Federal Government would be immediately driven to 1/10th its current size with such a ruling.

What does your understanding say he would do about the Fed?

Fri, 10/16/2015 - 12:37 | 6675509 JR
JR's picture

Americans need a leader who will capitalize on this growing discontent with the Fed. As long as the people fear the government the people will submit and stay in line because they are afraid.  But when this banker-controlled government does enough things to make them hate it, there will come a leader who will capitalize on that hate.

“The world can be made to pay only so long; then it exacts its pound of flesh.”

Herbert Hoover warned in 1935 of this theft of property from the people by the oligarchs:

Hardships “will fall upon the great mass of the people who are indirect holders of obligations through their savings and insurance, in savings bank deposits, as well as those who directly hold bonds and mortgages. That is, in our modern American economy the rich are more largely the holders of equities and those of moderate means more largely the holders of obligations. Thus the rich hereby become richer, the poor poorer….

“Those self-denying investors – the thrifty of the nation—who were willing to accept a low rate of interest in order to obtain the maximum security, are under this theory to have the purchasing values of their savings now shrunken in exactly the same ratio as the avaricious who received extortionate rates, or the reckless who took high risks.”

Fri, 10/16/2015 - 13:22 | 6675717 LawsofPhysics
LawsofPhysics's picture

JFK was one such leader.  look how well things went for him...

Fri, 10/16/2015 - 13:38 | 6675785 Talleyrand
Talleyrand's picture

Grown men and women don't need 'leaders'. Leaders got you where you are today. . Wait for a leader and you will wait forever.

 

The fed will end when its currency dies. Fiat currencies always end badly. Patience --- and preparedness.

 

Fri, 10/16/2015 - 14:32 | 6676059 o r c k
o r c k's picture

Good point about "leaders". Seems they satisfy some genetic craving held over from our ape days for a hierarchical social construct. "the leader of the pack". "the top dog". "King of the forest". "your Highness".

Fri, 10/16/2015 - 15:17 | 6676299 Talleyrand
Talleyrand's picture

See Cheney & Seyfarth, "Baboon Metaphysics".

Fri, 10/16/2015 - 12:42 | 6675526 Lucky Leprachaun
Lucky Leprachaun's picture

Read End The Fed by Ron Paul.

Fri, 10/16/2015 - 12:50 | 6675561 withglee
withglee's picture

Read End The Fed by Ron Paul.

What's his thesis statement?

Fri, 10/16/2015 - 12:42 | 6675528 Leatherneck59
Leatherneck59's picture

There was a Fed Board meeting today at 10:00am any info on it?

Fri, 10/16/2015 - 12:45 | 6675543 ghostzapper
ghostzapper's picture

It seems rather obvious that President Franklin D. Roosevelt was not "expressly authorized or required" to "issue an Executive Order or proclamation" demanding the public (private) to relinquish their privately held gold.

The order (proclamation) issued by Roosevelt was an undisciplined act of treason. Two months after the Executive Order, on June 5, 1933, the Senate and House of Representatives, 73d Congress, 1st session, at 4:30 P.M. approve House Joint Resolution 192 (HJR-192) A Joint Resolution to suspend the Gold Standard and abrogate the Gold Clause, Joint resolution to assure uniform value to the coins and currencies of the United States. 

HJR-192 states, in part, that "Every provision contained in or made with respect to any obligation which purports to give the oblige a right to require payment in gold or a particular kind of coin or currency, or in any amount of money of the United States measured thereby, is declared to be against public policy, and no such provision shall be contained in or made with respect to any obligation hereafter incurred. Every obligation, heretofore or hereafter incurred, whether or not any such provisions is contained therein or made with respect thereto, shall be discharged upon payment, dollar for dollar, in any such coin or currency which at the time of payment is legal tender for public and private debts." 

HJR-192 goes on to state: "As used in this resolution, the term 'obligation' means an obligation (including every obligation of and to the United States, excepting currency) payable in money of the United States; and the term 'coin or currency' means coin or currency of the United States, including Federal Reserve notes and circulating notes of Federal Reserve banks and national banking associations." 

HJR-192 superseded Public Law (that which passes as law today is only "color of law"), replacing it with public policy. This eliminated our ability to PAY our debts, allowing only for their DISCHARGE. When we use any commercial paper (checks, drafts, warrants, federal reserve notes, etc.), and accept it as money, we simply pass the unpaid debt attached to the paper on to others, by way of our purchases and transactions. This unpaid debt, under public policy, now carries a public liability for its collection. In other words, all debt is now public. 

The United States government, in order to provide necessary goods and services, created a commercial bond (promissory note), by pledging the property, labor, life and body of its citizens, as payment for the debt (bankruptcy). This commercial bond made chattel (property) out of every man, woman and child in the United States. We became nothing more than "human resources" and collateral for the debt. This was without our knowledge and/or our consent. How? It was done through the filing (registration) of our birth certificates! 

The United States government -actually the elected and appointed administrators of government -took (and still do, to this day) certified copies of all our birth certificates and placed them in the United States Department of Commerce ... as registered securities. These securities, each of which carries an estimated $1,000,000 (one million) dollar value, have been (and still are) circulated around the world as collateral for loans, entries on the asset side of ledgers, etc., just like any other security. There's just one problem, we didn't authorize it. 

The United States is a District of Columbia corporation. In Volume 20: Corpus Juris Section 1785 we find "The United States government is a foreign corporation with respect to a State"

Fri, 10/16/2015 - 12:48 | 6675557 withglee
withglee's picture

But instead of earning a decent rate on his savings, he gets the ultra-low rate that is fiddled by the feds. He gets almost nothing. This is not just an abstract point to be argued by economists. It is theft.

So you don't think interest rates and inflation are numbers to be picked out of the air?

Fri, 10/16/2015 - 12:50 | 6675567 yogibear
yogibear's picture

The keeps the myth going that their needed  to keep financial stability.

They didn't stop the great depression. They created the bubbles since them. 

Now they have created even larger bubbles. When they burst they will finger-point to some other cause.

What's even more weird now is they have this guy Jon Hilsenrath who acts a intermediate for the Fed to do their announcements.

Jon, you do blowjobs for them as well?

Just amazing! 

 

Fri, 10/16/2015 - 12:53 | 6675578 JR
JR's picture

Herbert Hoover, one of the most maligned patriots in American history, warned in 1935 in “The Challenge to Liberty” about the dangers of the Federal Reserve and the farm loan system achieving political control over credit.

“If the purpose of these activities is to enable the government to dictate which business or individual shall have credit and which shall not, we will witness a tyranny never before contemplated in our history.”

That tyranny has arrived: follow the money to the oligarchs.

End the Fed.

Fri, 10/16/2015 - 13:26 | 6675738 MoHillbilly
MoHillbilly's picture

Upvote for Hoover reference. That dude got a serious bad rap

Fri, 10/16/2015 - 14:35 | 6676079 Pumpkin
Pumpkin's picture

I thank God for the greater judgment.

Fri, 10/16/2015 - 13:04 | 6675626 buzzsaw99
buzzsaw99's picture

the fed is just one tool in the arsenal of the maggots.

Fri, 10/16/2015 - 13:21 | 6675707 SillySalesmanQu...
SillySalesmanQuestion's picture

Did Newt really say that in the movie..? I must have drinking heavily and burning a blunt... ;-)

Fri, 10/16/2015 - 13:07 | 6675637 Son of Captain Nemo
Son of Captain Nemo's picture

Lest we forget how prophetic this little announcement was last year when it was delivered.

I think he was telling America you can change "it" if you really want to and you try hard enough -like us!

Fri, 10/16/2015 - 13:16 | 6675684 Radical Marijuana
Radical Marijuana's picture

http://www.thefreedictionary.com/robbery

ROBBERY:

The act or an instance of unlawfully taking the property of another by the use of violence or intimidation.
FRAUD is symbolic robbery. The political problems with respect to efforts to "End the Fed" are that one is attempting to overcome a globalized gang of trillionaire mass murderers. There is nobody else that actually able to operate in their league, where their long game of political economy has been based upon:
POLITICAL FUNDING ENFORCING FRAUDS
Moreover, money is necessarily measurements backed by murders, because the debt controls are necessarily backed by the death controls. That fits within the overall ways that private property is based upon backing up claims with coercions. In turn, that is based upon human beings and civilization operating as entropic pumps of environmental energy flows. However, since the established political economy is based upon governments ENFORCING FRAUDS by privately controlled banks, the dominate ways that the political economy is publicly discussed are based upon deliberately ignoring the principle of the conservation of energy as much as possible, while simultaneously the concept of entropy is deliberately misunderstood in the most absurdly backward ways. The fundamental concept is SUBTRACTION, from which follows ROBBERY. As soon as we perceive and define human beings as separate from their environment, and each other, then those subtractions require that the flow of energy across those thereby defined boundaries be TAKING, which is, by definition, ROBBERY. There is nothing but the dynamic equilibria between different systems of organized lies operating robberies. Campaigns to "End the Fed" could be doing nothing but possibly changing those ??? However, these days, the Fed's debt slavery has driven the development of debt insanities, which looks like it can not be resolved without provoking death insanities ...
Fri, 10/16/2015 - 13:19 | 6675697 LawsofPhysics
LawsofPhysics's picture

That is a whole lot of mental masterbation.  Allow me to simplify;

When fraud is the status quo, possession is the law.

That which cannot be sustained, won't be.

In short, get long sharecropping and guillotines.

same as it ever was.

 

Sat, 10/17/2015 - 15:27 | 6676766 Radical Marijuana
Radical Marijuana's picture

It is NOT the "same as it ever was" AFTER the development of ELECTRONIC FRAUDS, backed by the threats from ATOMIC BOMB FORCE.

Exponential progress in physical science and technology MEANS that politics is no longer anything like it used to be, although the vast majority of deliberately ignorant human beings like to pretend things are still the same, because their stupidity is still the same.

It is NOT possible to "simplify" the problems presented by the Federal Reserve Board, after those have become GLOBALIZED.

I agree with the tautology: "That which cannot be sustained, won't be." However, what "cannot be sustained" is the exponential growth of the strip-mining of the natural resources of a fresh plant. In that context, most of the old-fashioned notions of what we should do after "Ending the Fed" tend to be ridiculously out of touch with the deeper problems, namely that political economy is INSIDE human ecology, while, at the same time, an entire new Kingdom of Life, in the form of computer machine entities are emerging, which is developing its own industrial ecologies, along with the previously existing human and overall natural ecologies.

I repeat the dictionary definition of ROBBERY, but emphasize a different aspect of that definition:

The act or an instance of unlawfully taking the property of another by the use of violence or intimidation.

The biggest bullies develop their bullshit that the biggest forms of organized crime, which can engage in taxation, thereby becomes lawful, and hence, magically transforms to no longer be robbery. The best organized gangsters, the banksters, capture control over the political processes, so that the powers of governments effectively are robberies and frauds, which are based upon integrated systems of legalized lies, backed by legalized violence, that primarily serve the interests of the best organized gangsters, the banksters, and the corporations that grew up around those banksters controlling the public "money" supplies.

It is NOT merely "mental masturbation" to endeavour to reconcile progress with physical science with the lack of progress in political science. The "laws of physics" are NOTHING like what they were believed to be a few Centuries ago. The technologies that were enabled by that progress in physical science are literally trillions of times more powerful and capable than those were a few Centuries ago, before the industrial revolutions got going!

In my view, most of the few people who advocate "End the Fed" tend to continue to believe in lots of old-fashioned bullshit. Indeed, BECAUSE politics continues being dominated by old-fashioned religions and ideologies, which deliberately ignore the profound paradigm shifts achieved in physical science, our political science continues to mostly be an oxymoronic scientific dictatorship, which primarily applies science and technology to become better at backing up lies with violence, so that has become globalized electronic frauds, backed by atomic bombs, all of which was previously based upon the industrial revolution being able to strip-mine the natural resources of a fresh planet, which was being done through fundamentally fraudulent financial accounting systems, the heart of which is its single most significant institution, the Federal Reserve Board, as the American King of Fraud, supervising the global reserve currency, the American Dollar, which was backed by the American Military.

Anybody who promotes "Ending the Fed" should propose the kinds of death controls that will back up the new debt controls, which would exist after the End of the Fed. However, most of those who promote "End the Fed" are a variety of reactionary revolutionaries, whose impossible ideals are somehow to go backward, towards whatever are their favourite old-fashioned religions or ideologies.

Money, as measurement backed by murder, should be understood in ways which are consistent with information theory and thermodynamics. However, doing that requires going through series of intellectual scientific revolutions, in order to appreciate the degree to which the biggest bullies' bullshit world views drove the development of information theory and thermodynamics to become inverted and perverted, (arbitrary minus signs were put into those entropy equations) in order that those would be consistent with the overall biggest bullies' bullshit world views.

It is way MORE than merely "mental masturbation" to attempt to reconcile the understanding of human beings and civilizations with general energy systems. On the contrary, it is a worse sterile dead-end to propose "End the Fed" without having done the work required to consider how to transform systems of electronic frauds, backed by the force of weapons of mass destruction.

Since politics continues to be mostly controlled by beliefs in old-fashioned religions and ideologies, the Fed continues to get away with its debt slavery systems, which have already driven the development of numbers which have become debt insanities. The vast majority of people do not understand that, because they have been conditioned to not want to understand that. Furthermore, what they do not understand has become runaway electronic frauds, which have become automated, and so, automatically continue to get worse, faster ...

Meanwhile, most people who are somewhat aware of those situations, also continue to have ridiculously old-fashioned expectations for the future of GLOBALIZED ELECTRONIC FRAUDS BACKED BY ATOMIC BOMBS, so that stupidly superficial comments like calling for "guillotines" can be spouted, as if those are remotely close to being in the order of magnitude of those runaway PROBLEMS.

The source of those PROBLEMS has been series of intellectual scientific revolutions in physical science, which were achieved by profound paradigm shifts. The ONLY ways that human beings might be able to adapt to survive the development of the technologies based upon that progress in physical science would be to change political science in ways that integrated and surpassed those paradigm shifts in physical science.

At the present time, the most probable futures are for the runaway debt insanities to drive death insanities. However, those will be nothing like anything that happened during human history, because nothing remotely close to globalized electronics or atomic bombs ever existed before. Those who recommend "End the Fed" should address the ways that money is necessarily measurement backed by murder, and therefore, recommend radical revolutions in the ways that people perceive and operate their death control systems, that back up their debt control systems.

At the present time, those are being done through the maximum possible deceits and frauds. However, at the same time, almost all of the publicly significant opposition is controlled to stay within the same frame of reference, because they continue to think in ways which mostly take for granted the biggest bullies' bullshit world views. However, there is not so much which is the "same as it ever was" after backing up lies with violence has become globalized electronic frauds, backed by the threat of force from atomic bombs.

The ONLY things that are staying the "same as it ever was" are that the vast majority of people are still believing in old-fashioned religions and ideologies, and therefore, the runaway debt insanities are most probably headed towards provoking death insanities, while the only genuine better resolutions to those real problems would have to be the development of better death control systems, which were perceived in radically different ways, due to profound paradigm shifts in the ways we think about those things!

Therefore, in my view, it is you who are continuing to engage in sterile "mental masturbation," rather than me. "Possession," or ownership in general, is based upon some system of backing up lies with violence, which systems have actually become electronic frauds, backed by weapons of mass destruction. In that context, old-fashioned notions regarding what is "possession" have become ridiculously out of touch with the actually existing magnitudes of the frauds and forces that are currently manifesting.

There continue to be growing Grand Canyon Chasms getting wider and wider every day, due to progress in physical science, without that being surpassed by progress in political science. The vast majority of people continue to want to believe in old-fashioned religions and ideologies, which make it be politically impossible to deal with the emerging issues driven by exponential progress in physical science and technologies.

It was always the case that human artificial selection systems were made and maintained by the surrounding natural selection systems. That continues to be the case, which is how and why we are most probably going to actually resolve the runaway debt insanities, driven by the excessive successfulness of the debt slavery systems operated by entities like the Federal Reserve Board, by going through to end up provoking death insanities. Indeed, at the present time, those appears to be the only realistic ways that different death control systems could be developed.

The relationships between human artificial selection systems and natural selection systems, are far, far more hyper-complicated than any individual human being can fully comprehend. Those who pretend to "simplify" that are grossly mistaken! Those who merely recycle the previous patterns of history, without taking into account that the progress in psychical science has made technologies which are trillions of times more powerful and capable, tend to promote ridiculously old-fashioned, bogus "solutions" which are non-starters.

While I surely agree that it is a political priority to "End the Fed," what that means goes way beyond any publicly significant presentation of what should replace the Fed that I am currently aware of ...

Fri, 10/16/2015 - 13:21 | 6675709 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

As soon as one of the TBTF tanks we will see the end of the FED. The Giant Vampire Squid is down 36% this year on earnings. It kind of looks like GS is going to fall from the penthouse to the street just like their banksters that jumped from the roof and suicided. In essence, GS has already jumped from the roof of headquarters with this abysmal earnings announcement.

Fri, 10/16/2015 - 13:23 | 6675722 Give up. Realit...
Give up. Reality is not scientific nor even mathematical.'s picture

"Think of the aging person who had $100,000 saved in 2007. If he had earned 4% a year on his money, he would have earned $28,000 in interest since then. But if he got only 1% (or less), he would be short $21,000. What happened to it? Who took it?"

We know who didn't have to pay the interest. And it's not just seniors who are not getting interest on their bank deposits.  Small businesses can hold a million dollars in float money, money that isn't theirs, but money that sits in their bank accounts month-to-month before the bills get paid at the end of every month.  Small businesses too have been fleeced, and deprived of that interest income.

And there is the secret concerning what has happened to the economy.  Interest income on savings accounts is a huge driver of consumption for individuals and businesses, and it's GONE all because of FED ZIRP.  There's the theft, right there.  The FED has stolen the interest income of savings accounts and GIVEN it to the banks.

Operatives at the banks also stole a great deal from their banks before, during and after the crash, huge unimaginable sums.  The FED has been bailing these same banks out ever since the crash by making money free, and depriving savings bank account holders the interest their money should earn, the interest their money would earn in a true market economy.

Is money in demand?  Damn right it is, now more than ever.  The right (market) interest rate on savings right now should be well greater than 10%, if we judge by the demand for cash.  But the FED just keeps on printing.

The FED's ZIRP is what is suffocating the REAL economy.

Fri, 10/16/2015 - 13:54 | 6675871 Ace Ventura
Ace Ventura's picture

The kicker? While the banksters 'pay' out ZIRP on customer deposits....they in turn get to deposit the billions in TARP/bailout funds at the fed....for something like 3% guaranteed. Imagine 3% interest on millions/billions of dollars.

Meanwhile, banks have the gall to send a 1099 form citing 'earned interest/dividend income' of $14 or some such crap to the average person.

The entire thing is one titanic, tragic, hurl-inducing joke of a circus. This sort of crap ain't gettin' fixed from within.

Fri, 10/16/2015 - 13:32 | 6675761 Cthonic
Cthonic's picture

The Case Against The Fed  ~ M. Rothbard 1994

http://store.mises.org/Case-Against-the-Fed-The-P69.aspx

Fri, 10/16/2015 - 13:53 | 6675860 XRAYD
XRAYD's picture

First they take away the interst earings of 'everyday Americans" with savings in CDs and bonds, and transfer them to the bankers and casino owners on Wall Street

Now these savers get practically nothing for their money on which they had anticipated earning 5-6%.  And to crown it all, for many, they will get no Social Security COLA and their MEDICARE premiums will go up by 50%.

This is not monetary "policy" to create jobs, but a CRIME for those who created the mess to pretect thier own!

But hey, America is a "free" country, now with free money - for the 1%.

Fri, 10/16/2015 - 14:48 | 6676155 the grateful un...
the grateful unemployed's picture

if the president were to announce that the fed is now a cabinet position in the white house which answers directly to him, would that be like ending the fed? and if when we get to the debt ceiling if the president were to announce that this should add more transparency, and provide investors with confidence, and this game of who's got the bonds will be easier to understand, were he to say the deferred assets the fed is holding haveve been transferred over to Treasury, and we now hold our own bonds, (in order to monetize the debt)  And if he were with a wave of his magic wand declare that returning bonds issued as debt from the fed back to Treasury, means those bonds are being retired, therefore the debt disappears and you say yes but, and since the primary holders of that paper are foreign reserves (who are ready to dump that stuff anyway) and that the readjustment to the dollar will make america more productive, and competitiive, would that end the Fed. or if Janet Yellen went back to college to teach economics 101. thre has to be a little monkey hammering, but it would all be very neat the cause no change in the protean macroeconomic environment. this game of the fed pretending it isnt part of government and can therefore fund government by kiting bonds has gone way too far. we are holding our own paper as debt, cancel the debt

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