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Guest Post: The Rot Runs Deep 1: The Federal Reserve Is A Parasitic Wealth Transfer Machine

Tyler Durden's picture




 

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

The Federal Reserve is a wealth transfer machine, skimming wealth from the productive many and transferring it to the parasitic few.

Today I launch a series entitled "The Rot Runs Deep" that examines the moral and financial rot at the core of American finance, politics and culture. We have reached a unique junction of American history: the confluence of Big Lie propaganda, neofeudalism and the worship of false financial gods.

The Big Lie propaganda machine of corporate media and the Central State has perfected Orwell's nightmare vision of centralized media and a fascist centralized State which turn lies into self-serving "truth."

Since the Federal Reserve is once again expected to "save" a crumbling, exploitative Status Quo, let's use the Fed as an example. The propaganda machine would have us believe that the Federal Reserve, the privately owned central bank of the U.S., has "saved" the Status Quo from financial ruin on numerous occasions by "smoothing out" the business cycle (credit expands and contracts) and by "stimulating aggregate demand" by lowering interest rates and pumping money into the economy (quantitative easing).

We are constantly prompted to worship the Federal Reserve's supposedly god-like powers to rescue a corrupt and venal Status Quo from the black hole of recession and collapse, and this Big Lie masks its real nature: The Fed is nothing but a parastic wealth transfer machine, skimming wealth from the many and transferring it to the few.

In effect, the Fed is the "enforcer" of neofeudalism in America: the feudal Lords of Finance control the for-sale political system and skim tribute from the 99.5% toiling in the fields below their castles. The Fed enforces this parasitic transfer of wealth by manipulating interest rates to enrich the banks and provides "free money" to the Financial Lords which is then used to buy assets and lend at interest.

The mechanisms of the Fed's parasitic transfer of wealth are well-known. Here's one: the Fed "loans" money to the Feudal Lords at 0% interest. the Lords then loan this free money out to peasants, students and other debt-serfs at high rates of interest. The interest "earned," courtesy of the parasitic Fed, is theirs to keep.

If they can't find enough debt-serfs who can pay more interest, they can always deposit the free money back at the Fed and earn interest from the Fed itself.

Here's another: the Fed "loans" free money (0% interest) to the Financial Lords, who then buy low-risk long-term U.S. Treasury bonds paying 3%. When the Lords spot a better skimming opportunity, they sell the bonds to the Fed, who buys the bonds from the Lords as part of its "Operation Twist."

Peasants who have arduously saved up capital (cash) earn next to nothing as a result of Fed policy, but the Fed insures Feudal Lords earn a guaranteed return on money they obtained for free. The suppression of interest income to near-zero (a negative return once inflation is factored in) is a massive transfer of wealth from savers to Fed-backed speculator Lords and banks.

As a direct and intentional result of the Fed's quantitative easing, huge sums of "free money" slosh into the "risk-on" stock market, where the money provides liquidity for the Lords' high-frequency trading (HFT) skimming operations.

The losers are the peasants who have been locked into 401K plans that divert their earnings into the stock market, where the Lords' HFT can skim billions from the 401K plans.

The Fed guarantees the Lords free money, and also supports the Financial Lords' speculative bets in the stock market; whenever the market threatens to swoon, the Fed intervenes and manipulates the markets up to levels where the HFT machines will trigger momentum buying.

What do we call a power center that enables and enforces neofeudal exploitation and predation? We call it evil. The Federal Reserve is a force of evil that should be abolished at once. Its purpose--enabling and enforcing a neofeudal transfer of wealth from the productive many to the unproductive, parasitic few--is evil. Those within it are serving evil. Those who defend it are serving evil. Those who worship its power are serving evil. Those who mask its true nature are also serving evil.

In a society and culture that has lost its moral compass, a culture of greed, self-serving lies and corrupt vested interests, the word "evil" has lost its power. It has been reduced to a cartoonish label, a cynic's smarmy joke.

The Soviet Empire was evil, and President Reagan was mocked by "sophisticates" for labeling our global competitor evil. In the relativist terms of propaganda, the only difference between the U.S. and the U.S.S.R. were two letters; this is the mindset created by a reliance on propaganda. There is no good or evil, there is only the paycheck "earned" by serving one master or another.

Anyone daring to label the widely worshipped Federal Reserve as a false god, a purveyor and enforcer of predation and exploitation, will also be mocked by presumptive "sophisticates" of the many Cargo Cults that depend on the neofeudal skimming, exploitation and lies for their own share of the spoils. Their self aggrandizement and share of the swag demands obedience to the Fed's godlike power to skim from the many and distribute to the few.

Since they are among the few, they will do anything for their Master, the Federal Reserve, for it has the power they worship: the power to transfer vast wealth from the productive many to the parasitic few.

Should we be surprised that the parasites in the media, academia, politics and finance support the evil that enables their own predation and exploitation? Of course not, for self-service and self-justification are the ultimate American gods.

 

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Sun, 08/26/2012 - 16:11 | 2738983 Renewable Life
Renewable Life's picture

Oh Tyler, why do you have to be hard on parasites???

Sun, 08/26/2012 - 16:14 | 2738987 JR
JR's picture

Parasites are people, too!

Sun, 08/26/2012 - 16:20 | 2739006 flacon
flacon's picture

Parasite begins with "Ph.Dee" and itches like a Poison Ivy League.

Sun, 08/26/2012 - 17:35 | 2739137 XitSam
XitSam's picture

Occupy parasites! Before they occupy you.

Sun, 08/26/2012 - 19:24 | 2739449 saturn
saturn's picture

Boycott the evil. Use your own money, not theirs. It is THAT easy!!!

Sun, 08/26/2012 - 23:18 | 2740051 Mithril
Mithril's picture

One Banking Ring to rule them all and in the darkness bind them....The newly formed "Financial Stability Board" of the Bank of International Settlement. Yes the one that Obama signed onto, is going to make a one world currency... Effectively taking away everyones sovereignty.... Don't let it pass into law!!! They are going to ride in on a white horse to "save the day" after they created this shit with a new world fiat currency of SDR's. End the Fed and get the pitchforks! Stand up for your Constitutional Rights... Our founding fathers are rolling over in their graves... Tyler and George help spread the word. Stop these Bastards NOW! Fuck you Ben and Timmy.

http://beforeitsnews.com/conspiracy-theories/2012/07/coming-soon-a-globa...

Mon, 08/27/2012 - 04:46 | 2740331 AldousHuxley
AldousHuxley's picture

fed exists to avoid great depression, but not it is a crutch used by banksters and politicians to stay in power.

 

It is the arrogance of the Fed (Greedspan) that turned itself in. Bernanke is just a finishing touch.

 

Greedspan said middle class makes too much money so let's kill the middle class. reagonomics, thatcher, and wall st. deregulation....all designed to follow elite's agenda of getting rid of the middle class

 

 

Mon, 08/27/2012 - 09:06 | 2740604 Element
Element's picture
The Creature From Jekyll Island (by G. Edward Griffin) - 1 hour 47 mins

http://www.youtube.com/watch?v=lu_VqX6J93k&feature=related

Sun, 08/26/2012 - 20:37 | 2739692 ElTerco
ElTerco's picture

I didn't know the Koch Brothers were Ph.D.s!!!  On second thought, "Piled Higher and Deeper" does seem to sum them up.

Sun, 08/26/2012 - 16:28 | 2739019 Mr. Fix
Mr. Fix's picture

This may be a stretch,

 but I do not consider parasites people too.

 They are a disease, which will annihilate the human race if not confronted, and exterminated.

 The easiest way to do that, is simply identify them, and cut them off.

 If you stop looking at parasites as people too, than

 you will be much much further along towards finding the solution.

Sun, 08/26/2012 - 16:35 | 2739033 fourchan
fourchan's picture

.

.

maybe calling the fed "fucking evil" would be more accurate than just the run of the mill mother raper child killer evil?

Sun, 08/26/2012 - 16:35 | 2739034 fourchan
fourchan's picture

.

.

maybe calling the fed "fucking evil" would be more accurate than just the run of the mill mother raper child killer evil?

Sun, 08/26/2012 - 19:38 | 2739504 Roandavid
Roandavid's picture

You go fourchan.

I bumped you twice.

Sun, 08/26/2012 - 16:41 | 2739043 knukles
knukles's picture

But Corporations are People, too.
And Animals have Legal Representation.
And Politicians are well....

Now, I may not be the brightest bulb in the egg carton, but even I can figure out how to do some really self aggrandizing shit if I was in charge of an organization that:
Makes money out of thin air
Has no oversight whatsoever
Is not audited
Is protected by the Law Makers and the Law Enforcers
Can wire money anywhere in the world
To any account
Without question
Which the politicians, plebes and peasantry believe is an absolute necessity of an organization

And if somebody fucks with my precious said organization what with all the powers heretofore elucidated, they will get their  ass sent to Heaven, Real Fucking Quick (and I don't mean Becky)

WTF does nobody understand?
Oppppssss!
Congress understands it, because the Fed still gets to make money out of thin air, have no oversight....

(sigh)

Sun, 08/26/2012 - 16:53 | 2739071 Michael
Michael's picture

Shouldn't those persons be paying the alternative minimum tax then?

Let me see if I get this strait;

The Federal Reserve is handing its corporate member banks on a silver platter hundreds of billions of dollars in free money by collecting interest on Fed deposits in their banks. That's what the 28 trillion dollars is for?

Sun, 08/26/2012 - 17:28 | 2739125 slewie the pi-rat
slewie the pi-rat's picture

tax?

what's that?  L0L!!!

i hope charles anti-Orwell doesn't have worms!

every word charles writes costs everybody!   sounds like he's having a rough year beating dead horses

i'm not sure he'd recognize a live one!

Mon, 08/27/2012 - 06:08 | 2740392 slewie the pi-rat
slewie the pi-rat's picture

The Federal Reserve is a force of evil that should be abolished at once.

Games  <: this link explains some of the psychology which tyler and charles are tripping on here

Playing “Ain’t It Awful” « The Outpost <:  same stuff, political angle (from a "lib" though so probably not true.  L0L)

charlesBinLaden?  the greatSatan is gonna fall to charlesSmith?

and anyone who questions this nonsense must have forgotten to take his meds!  that's the ticket!

if you don't understand you have been brainwashed by the propagandists and need remedial psychology b/c we're anti-orwell

are you shitting moi?  this is gonna be a series? what's thePlan, chasmo? 

slewie predicts that if charles lives w/in a 50-mile radius of the chairsatan or any FED regionalBank, he will be rooming w/ sgtRaub when he receives thePulitzer for best comedy jihad in an election year

if this gets any funnier, i am gonna need new carpeting soon!

keep drinking, tyler!

Sun, 08/26/2012 - 21:17 | 2739800 traderjoe
traderjoe's picture

With fractional reserve banking - the corporate banks can create all the money they want out of thin air - thank you very much.

Sun, 08/26/2012 - 22:58 | 2740025 robertocarlos
robertocarlos's picture

As long as the only take out loans and then pay the loans back, it should be OK.

Sun, 08/26/2012 - 18:15 | 2739229 Ignatius
Ignatius's picture

Debt free money -- or, conversely, money issued as an asset -- is the civil rights issue of the 21st century.

End the Fed.

Sun, 08/26/2012 - 16:49 | 2739063 JR
JR's picture

Mr. Fix, my dear literalistic friend, I do not consider parasites people.

Sun, 08/26/2012 - 16:15 | 2738991 Silver Bug
Silver Bug's picture

The Federal Reserve will eventually implode on itself.

 

http://uselections2012blog.blogspot.ca/

Sun, 08/26/2012 - 16:22 | 2739008 centerline
centerline's picture

By design.

Sun, 08/26/2012 - 16:22 | 2739010 LawsofPhysics
LawsofPhysics's picture

"Ryan is the perfect conservative pick"

Paul Ryan is a career puppet who voted for bailouts (GM, AIG, TARP, TALF, Fanny, and Freddy - all to save banks and financial houses).  The best part is he voted against any oversight of those bailouts.

Perhaps you could explain to me how the fuck these are conservative actions?

Left... right... left... right...

soon the sheep and their children march off to war and their slaughter.

Looks like more of the same to me as the owners of the Federal Reserve prepare to simply change the game and call it something else (like an SDR).

Nothing changes until the guillotines are put to use on the real owners, period.

Sun, 08/26/2012 - 16:27 | 2739018 sessinpo
sessinpo's picture

+1000

There is no right anymore.

Sun, 08/26/2012 - 18:04 | 2739072 ZerOhead
ZerOhead's picture

Right and left have both simply been replaced by wrong.

Wrong and wronger, corrupt and corrupter, and dumb and dumber...

 

God bless America... land of the fleeced and the home of the slave.

Sun, 08/26/2012 - 21:45 | 2739870 defencev
defencev's picture

Even the author of the "article" whom I consider to be a proven idiot took pains to distinguish between USSR and USA. The readers seems to me lost any sense of reality by putting everybody in the evil category. Well, I have a news for you:Federal reserve as an institution is not evil. It provides specific tools to regulate the economy and hence more flexibility. There is absolutely nothing wrong with that. The people who run ZIRP definitely are evil. What is a point in having zero interest rates if the only beneficiary of this policy are market participants who do not need it (big corporations who have ability to borrow money under low rates but have plenty of cash,anyway) or the government who use this opportunity to borrow and waste more with very low interest. Small businesses cannot borrow, anyway. Why not to have higher interests? That would at least award savers and put some discipline on government wasters. Well, you can have higher interests, if and only if.. there is a Fed and people who run it make some sense.

Sun, 08/26/2012 - 20:15 | 2739630 Papasmurf
Papasmurf's picture

There is no wrong anymore.  And that is the problem.

Sun, 08/26/2012 - 16:29 | 2739021 Everybodys All ...
Everybodys All American's picture

For someone that is against the machine you sure have a left lean to your rants.

Sun, 08/26/2012 - 16:47 | 2739057 LawsofPhysics
LawsofPhysics's picture

There is no right or left anymore.  Soon there will be no dollar and all that you may have in "wealth" or "security" will be found in the genuine productivity, intellect, and innovation of yourself, your employees and those you chose to associate with.

I don't necessarily view this as a bad thing.  A true conservative wouldn't either.  Want a better society?  Let bad ideas,  bad management, bad corporations, and bad institutions fail.  Nature makes sure that there are real consequence for bad behavior and a good republic should as well.  Either way, Nature wins.

Hedge accordingly (that is all you can really do anyway).

Sun, 08/26/2012 - 16:53 | 2739070 Everybodys All ...
Everybodys All American's picture

I agree whole heartedly with everything you said. I still unfortunately in your view I suppose hold out hope for for the right and/or left to at some point reform their parties. Granted it may be too late very soon.

Sun, 08/26/2012 - 17:05 | 2739086 CH1
CH1's picture

With respect: By holding out hope, you remain immobilized inside of that paradigm.

The only 'hope' is to ditch the evil system and get busy building better things.

Peace.

Sun, 08/26/2012 - 18:04 | 2739192 Spastica Rex
Spastica Rex's picture

You cannot go against nature, because when you do (go against nature), it's part of nature too.

Welcome to human nature.

http://www.youtube.com/watch?v=Bo3R3LBjDek

Sun, 08/26/2012 - 21:11 | 2739787 LawsofPhysics
LawsofPhysics's picture

Not sure i understand. Please, stop drinking all fluids and let us know how that works out for you.

Sun, 08/26/2012 - 16:42 | 2739049 knukles
knukles's picture

Perhaps the chap meant (or is otherwise mentally infirmed) that Ryan is the perfect Neo-Con pick.
A true conservative would never display that voting record....

 

Sun, 08/26/2012 - 18:21 | 2739246 Anusocracy
Anusocracy's picture

Ryan is the perfect neocon prick.

Sun, 08/26/2012 - 16:56 | 2739075 resurger
resurger's picture

+1

Sun, 08/26/2012 - 17:21 | 2739111 grid-b-gone
grid-b-gone's picture

The only non-puppet this year lost in Maine due to voting fraud.

Iceland is now the model for freedom, as the U.S. was nearly 240 years ago. That's three saeculum cycles - not a bad run in historical terms. Now, it appears we must struggle just to save what we took for granted as permanent.

Like Iceland, struggle need not mean any dangerous action. Just say no to actions that run counter to The Constitution. Starve the beast and help a neighbor. 

That's about all it would take, except so much of the inane texting and tweeting citizenry does not yet comprehend the situation. 

We all laughed at Leno's "Street Walking" segments, but that all-too-typical cluelessness is what we need to break through before this situation can be reversed.

Sun, 08/26/2012 - 18:26 | 2739254 banksterhater
banksterhater's picture

and he wants/sponsors PERSONHOOD, making even birth control and invitro a crime. Yea for progressive womens rights.

Sun, 08/26/2012 - 17:27 | 2739118 FreeSlave
FreeSlave's picture

Why ZH would not put a news that Ron Pauls Convention going on? What is up with you Tyler!??? You can see that live http://www.c-span.org/RNC/Events/Ron-Paul-Holds-Rally-in-Tampa-Fla/10737433373-1/

Sun, 08/26/2012 - 19:04 | 2739380 Turin Turambar
Turin Turambar's picture

It'll implode alright, but on us.  :-(

Sun, 08/26/2012 - 17:28 | 2739123 Landrew
Landrew's picture

Remember it IS a GUEST post.

Sun, 08/26/2012 - 16:15 | 2738989 LawsofPhysics
LawsofPhysics's picture

That which cannot be sustained, won't be.  Entropy's a bitch, but I certainly am looking forward to beer becoming the new "gold standard".  In terms of trade and civilization, throughout history agriculture and commodities in general always win in the end.  Fucking bring it.

Sun, 08/26/2012 - 19:45 | 2739530 Shigure
Shigure's picture

Brewing beer is next on my list of new skills to aquire

Sun, 08/26/2012 - 20:21 | 2739650 Papasmurf
Papasmurf's picture

Stay thirsty, my friend.

Sun, 08/26/2012 - 16:15 | 2738993 Meesohaawnee
Meesohaawnee's picture

but wait. they call it "stimulus" .. i thought that was good <sarc>

Sun, 08/26/2012 - 16:44 | 2739051 Goldilocks
Goldilocks's picture

Diffrent strokes Tv show intro
http://www.youtube.com/watch?v=fQMfN0UFqms (0:50)

~//~

Bitter Creek Western Live Steam Narrow Gauge Meet 2007
http://www.youtube.com/watch_popup?v=6VAuPPufNro (4:39)

(remember to breathe) Alberta - Travel Alberta
http://www.youtube.com/watch_popup?v=ThFCg0tBDck (3:00)

Sun, 08/26/2012 - 20:39 | 2739697 msmith9962
msmith9962's picture

If the stimulus lasts more than 4 hours call an ambulance.

Sun, 08/26/2012 - 16:24 | 2739001 LMAOLORI
LMAOLORI's picture

 

 

 

This is an article everyone who frequents ZH should be able to agree with 

btw speaking of Orwell

The BBC declined to have a statue of George Orwell outside its headquarters. Quite right - his genius deserves better

 

"In a society and culture that has lost its moral compass, a culture of greed, self-serving lies and corrupt vested interests, the word "evil" has lost its power. It has been reduced to a cartoonish label, a cynic's smarmy joke."

And speaking of smarmy

 

Crony Corporate Elitist Hosts Wedding of Daughter of Fed Bankster

 

 

Sun, 08/26/2012 - 17:28 | 2739124 Bob
Bob's picture

Though dying of TB, Orwell lived long enough to transmute his horror of Communism into his twin masterpieces 'Animal Farm' and '1984' and at the dawn of the Cold War, drew up at the request of the British security services a list of 50 of his fellow writers whom he regarded as Communists or fellow-travellers.

Now that's tragic irony that our reviewer clearly misses.
Sun, 08/26/2012 - 18:38 | 2739291 LMAOLORI
LMAOLORI's picture

 

 

Agree pretty sharp I would give you an up vote if I could I wonder how many people actually know that about Orwell

Sun, 08/26/2012 - 16:21 | 2739003 Tinky
Tinky's picture

Anyone care to take a swing at Krugman's (Gold Standard) latest?

http://krugman.blogs.nytimes.com/2012/08/26/golden-instability/?src=twrh...

Sun, 08/26/2012 - 16:24 | 2739014 LawsofPhysics
LawsofPhysics's picture

Critiquing a rodeo clown would be a more constructive use of time.

Sun, 08/26/2012 - 16:28 | 2739024 Tinky
Tinky's picture

Perhaps, but I would enjoy seeing someone eloquently smack him down in the comment secition of his NYT piece.

Sun, 08/26/2012 - 16:37 | 2739040 LawsofPhysics
LawsofPhysics's picture

Read his book, like any modern eCONomist, he contradicts himself constantly.   There are truly brilliant people in this world who succeed and then there are those who simply "baffle you with bullshit" and manage to get into the "club".  Krugman is the latter.

Same as it ever was.

Sun, 08/26/2012 - 17:03 | 2739084 resurger
resurger's picture

good thought... how do you become a member in the Club, is it a "Keynesian Mindset" which enables you to become a member?Or you have to be an Ivy Leaguer and a Yid? I wonder...

Sun, 08/26/2012 - 16:39 | 2739046 machineh
machineh's picture

Since Kurgman is a troll and the NYT is an agitprop rag, better to just ignore both of them till they disappear.

Sun, 08/26/2012 - 17:13 | 2739066 css1971
css1971's picture

The value of the US dollar:

http://tinyurl.com/9hqc3br

Doesn't look very "stable" to me.

 

What gold would do is bring jobs back from abroad. As gold leaves the country due to the trade deficit with China, it becomes more scarce and therefore more valuable domestically, limiting the trade deficit, encouraging domestic purchasing and domestic production. It's only infinitely printable fiat currency which allows the unending export of jobs to China.

 

Oh yeah... And the price of corn since 2004?

http://futures.tradingcharts.com/chart/CN/M

Gold over similar period:

http://futures.tradingcharts.com/chart/DG/M

Hmm, both seem to have tripled. Must be a coincidence, not inflation, deflationary shock surely..... Yes both gold and corn are changing their value, nothing to do with us dollars changing in value.

 

 

Sun, 08/26/2012 - 17:19 | 2739107 Sean7k
Sean7k's picture

It isn't worth establishing an account. However, just a few quick comments: One, how do you look at gold's price stability when the gold standard no longer exists? Starting at 1968 til the present is playing with statistics. What you are really seeing in that chart, is the initial reaction to massive money printing in the seventies tied to the petro dollar and the manipulation of interest rates to control gold price in the subsequent years. 

Two, the gold standard had two problems- first, it was a fixed price. This is not a true gold standard that must float. Second, banks that printed too much currencies were allowed to SUSPEND specie payments, but borrowers were not. Pointing out business cycle corrections as  particular years and blaming them on the gold standard shows a complete lack of intellectual rigor, but then, that is what Crudman is best known for. There is plenty of statisical evidence that shows how well America benefitted and grew during the 1870-1890 timeframe.

Three, he makes the assumption that deflation is bad, but never provides an argument for why, especially when every historical text from before 1930 has bankers and economists agreeing on the NECESSITY of deflation to cure malinvestment. 

Four, he never once introduces the effects of the Rothschild banking empire through collusion and intervention to cause many of these same problem years. 1907 is classic JPM work. Where are the references to Baruch? His own writings are quite clear on these political manipulations.

Now, don't read here that I want a gold standard. I would never want a gold standard- because if it is a regulated game, then the bankers will rule. You must end legal tender laws. Then people and business can and will decide what is money and what that value is.

 

Sun, 08/26/2012 - 17:30 | 2739129 Bay of Pigs
Bay of Pigs's picture

+1

In one simple post you have refuted and demolished Paul Krugman's entire body of work on economics.

Sun, 08/26/2012 - 18:13 | 2739216 monad
monad's picture

Snidely neglected to mention that the bank runs he cited were all engineered by his paymasters.

Sun, 08/26/2012 - 18:28 | 2739259 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

So Krugman much prefers the "stability" of the U.S. Dollar in this chart?  I guess the concept of purchasing power is lost on the great Nobel Prize winner.

http://www.google.com/imgres?imgurl=http://www.encognitive.com/files/ima...

Sure, the decline is so small and so slow you won't even notice it!

/sarc

 

Sun, 08/26/2012 - 20:42 | 2739707 Papasmurf
Papasmurf's picture

Krugman's career doesn't extend through that period, so it's irrelevant history.

Sun, 08/26/2012 - 16:20 | 2739005 francis_sawyer
francis_sawyer's picture

Someone needs to sneak in there & switch the BEARD's Ctrl+P key with a 'divide by zero' key...

Sun, 08/26/2012 - 16:21 | 2739007 akak
akak's picture

The Federal Reserve is just another manifestation of the US middle class.

In the USA, the middle class is the king class.

Voting is a middle class thing.

The Federal Reserve is an agent of US Citizenism, which enables the US middle class to farm the poor, extort the weak, monolize the speeching means, throat the mind and blob-up.

USA blobbing-up is necessary to feed expanding US consumptionizing of world resources.

In US Citizenism, the group is all.

Easter Island was blobbed-up and laid down by US Citizenism.

US Citizen nature is eternal.

Make me laugh!

Sun, 08/26/2012 - 16:35 | 2739035 Bay of Pigs
Bay of Pigs's picture

I guess some people missed the <sarc>?

LOL, good one...

Sun, 08/26/2012 - 16:39 | 2739041 akak
akak's picture

I laugh at every one of the down arrows!

 

(Just my little attempt to play the same kind of game that MDB does so skillfully here.)

Sun, 08/26/2012 - 16:40 | 2739047 hardcleareye
hardcleareye's picture

Huh???????

Sun, 08/26/2012 - 18:13 | 2739215 francis_sawyer
francis_sawyer's picture

Encroach on MDB territory & risk the down arrows blobbing up... Junks weren't from me though...

Sun, 08/26/2012 - 18:32 | 2739271 akak
akak's picture

Unwarranted junking: just another symptom of American middle class (king class) US Citizenism.

Blobbing-uppityness is their eternal nature.

Being parangons of offuscation and hypocritizenism, no US citizen self-indictment is possible.

Be that as it may ....

Sun, 08/26/2012 - 17:51 | 2739139 flacon
flacon's picture

American Middle Class has it easy. 

 

Look at the Liberian middle class:

http://www.youtube.com/watch?v=hTUw0vKksGc

 

Sun, 08/26/2012 - 16:39 | 2739042 hardcleareye
hardcleareye's picture

Akak, I usually enjoy reading your post (don't always agree) but I am having a hard time following this one.... 

Sun, 08/26/2012 - 16:43 | 2739053 Terminus C
Terminus C's picture

he's trolling a troll

Sun, 08/26/2012 - 16:44 | 2739054 akak
akak's picture

Sorry, hardcleareye --- I suspected that some readers/posters here would misinterpret that post of mine.

It is just a parody of the bigoted and nonsensical babblings of AnAnonymous, who is constantly railing against ANYTHING having to do with Americans or the USA, in particular his self-styled (and meaningless) 'US Citizenism'.

You should only feel bad if you did NOT have "a hard time following this one".

Sun, 08/26/2012 - 19:32 | 2739484 Andy Lewis
Andy Lewis's picture

Then I must rawk, 'cuz I didn't have a clue.

Sun, 08/26/2012 - 16:43 | 2739050 Terminus C
Terminus C's picture

Well done anakakamous

Sun, 08/26/2012 - 16:47 | 2739058 akak
akak's picture

When one channels AnAnonymous, one is diverting roadside nightsoil, so ....

Sun, 08/26/2012 - 16:48 | 2739062 11b40
11b40's picture

I see you have been reading Million Dollar Bonus and it's wearing off on you ;-)

Fun...thanks.

Sun, 08/26/2012 - 16:22 | 2739009 Mr. Fix
Mr. Fix's picture

Great article!

 Unfortunately, the parasites are currently in charge.

 The system will have to implode before this is corrected.

 At least we have access to stories like this, which will at least inform those who really want to know what is wrong. 

Sun, 08/26/2012 - 17:02 | 2739082 CH1
CH1's picture

We need to LEAVE the evil system, and build non-evil systems.

Either we act, or we acquiesce.

Sun, 08/26/2012 - 18:38 | 2739290 Anusocracy
Anusocracy's picture

Following through on creating Paulvilles might be a good start.

Even if you have to do it outside the US.

Sun, 08/26/2012 - 22:57 | 2740024 Never One Roach
Never One Roach's picture
GM Seeks Bigger Credit Line To Shrink Pension Obligations; Déjà Vu Pension Woes

Going into debt to fund pensions seems like a ridiculous thing to do, especially for a company had a chance to shed more of those pension obligations in bankruptcy.

Read more at http://globaleconomicanalysis.blogspot.com/2012/08/gm-seeks-bigger-credit-line-to-shrink.html#ovG6yHwGOmqasBuu.99

Sun, 08/26/2012 - 16:23 | 2739012 jimijon
Sun, 08/26/2012 - 16:30 | 2739027 LongSoupLine
LongSoupLine's picture

Ron Paul...period.

Sun, 08/26/2012 - 16:30 | 2739028 JR
JR's picture

Powerful stuff, CHS, and, my, how it's needed.

While Bernanke uses QE money to backfill debt holes on the bankers’ balance sheets that otherwise would be bad write-offs, money creation looks flat, fostering the impression that currency debasement is not causing inflation, never mind its financial immorality.                                                                                                                                                                                                                                                                                                                                                                         “The reality is the beleaguered Fed can't create new dollars quickly enough to keep up with the dollars being wiped out by bad debts,” says Bruce Pile of Seeking Alpha. “This is why the Fed can pump trillions of dollars into the economy and not cause hyper-inflation.”

The other reason Bernanke’s able to create money without allegedly causing an inflation problem is given by Peter Warburton – the globe is on an unfettered credit binge giving rise to debt default. Says Warburton: “There are some things that only money can do. However, there are many other things that credit can do just as well.”

Pile asks:

So if banknotes in circulation chasing goods and services and the CPI are not causing problem inflation, what currency debasement is the gold market all about?

His answer: It's like this market looks at money printing as the "supply" of dollars and it doesn't care if it goes to offset bad debts in the money supply or if it goes into off-balance-sheet creativity or whatever. Gold is not about inflation, not as we know it. It apparently goes by the axiom J.P Morgan once gave: "Gold is money. Everything else is credit." It seems that all credit issued, good or bad, paid back or not, is viewed as eventual competing currency by the gold market.

Says Pile: “The off-balance-sheet creativity we all fear did not stop running amuck with the mortgage bust. It has continued to flourish and endanger… The portions of derivatives the large banks reported on their balance sheets…averages less than 5% of what the banks actually own of these ‘financial weapons of mass destruction’”…

Derivatives massively leverage the debt in an economy.

“You can see by the banknote count…that money creation seemed to go flat after the '90s resulting in mild inflation - no blizzard of bills chasing our goods and services. But what came along to take up the slack in the parabolic rise of debt was derivatives. This created mega amounts of toxic garbage in secret places (not balance sheets) until some of the garbage had to suddenly be collected by the Fed's official balance sheet in 2008… now we have some $900 trillion in derivatives webbed together.

“But thank goodness,” says Pile, “there's no inflation.”

http://seekingalpha.com/article/457171-money-printing-s-biggest-show-of-all-time

Sun, 08/26/2012 - 16:43 | 2739052 max2205
max2205's picture

Someone needs to total the amount of savers interest losses over 3 years and then do a class action to recover from the Fed. This is ridiculous. My parents have 'lost' thousands.

Sun, 08/26/2012 - 16:53 | 2739073 RockyRacoon
RockyRacoon's picture

Opportunity cost is a difficult hurdle to meet when calculating loss.  Besides, this is how the system is supposed to work! How can a judge rule against the proper functioning of the financial system:  Robbing the poor and giving to the rich.  The sad part is that the most frugal and insightful are the ones who suffer.  That causes revolutions.

Sun, 08/26/2012 - 17:10 | 2739092 JR
JR's picture

"Interest income paid to senior citizens and savers has declined by $400 billion (29% decline) since September of 2008 due to Ben Bernanke’s ZIRP. – Jim Quinn

And that "loss" uses as a numerator the pre-2008 below market interest rate income the Fed has low-balled with fake inflation figures this entire new century; if market-determined interest earnings were allowed, that  loss probably would be three times greater.

For the Fed to go after this nest egg money, put together often after years of hard work as some security against the future, is one of the most severe criminal acts in our nation's history. Even a central planner attempting to force these savings into high risk avenues for the sake of the economy is bad enough but the Fed action was more: through the lie called inflation and the continuing crime of negative interest, the action was hardly civic. As it turns out, it was willful destruction by class for the benefit of the banking cartel.

Sun, 08/26/2012 - 18:56 | 2739350 Hedgetard55
Hedgetard55's picture

+55 kajillion. Bastard Ben stole my interest income for 4 years. May he rot in hell.

Sun, 08/26/2012 - 18:56 | 2739351 grid-b-gone
grid-b-gone's picture

The trickle down effect on birthday card cash has been devastating.

Joking aside, skip some fast food, buy an LED bulb. Plant some fruit or vegetable plant where you used to put annual flowers. Let your phone contract run out and go pre-paid. Take the grandkids to a zoo or arboretum instead of the water park.

In short, find ways to recover lost yield without giving up quality of life. 

Building a $200 treehouse will leave better memories with a grandchild than a $1,500 theme park package.

Sun, 08/26/2012 - 20:10 | 2739614 RockyRacoon
RockyRacoon's picture

Sure.  Do all that while Mitt puts in a $55K car elevator.  Thanks for the frugality hints.

Mon, 08/27/2012 - 12:51 | 2741172 tip e. canoe
tip e. canoe's picture

Rock, as someone else here said recently, the way out the pyramid is the bottom, not the top.    just a thought.

Sun, 08/26/2012 - 19:34 | 2739483 Waterfallsparkles
Waterfallsparkles's picture

I think the FED is using the 0 percent interest rate to fund the Social Security payments they owe.  Interesting that the 0 percent interest rates coincide with all of the Boomers retiring.  That way Boomers have no safe haven to fund their Retirement.

Either give control of your Money to Wall Street or you get Nothing.

Sun, 08/26/2012 - 17:18 | 2739103 LMAOLORI
LMAOLORI's picture

 

max2205

That's a good idea this is the UK but it could be done here in the U.S.

 

Savers lose £18bn/year as low Bank Rate bites

This is the excuse they will use to fend off the lawsuits though

"The Bank, led by governor Sir Mervyn King, said: ‘Without the Bank’s asset purchases, most people in the United Kingdom would have been worse off.

‘Economic growth would have been lower. Unemployment would have been higher. Many more companies would have gone out of business.

This would have had a significant detrimental impact on savers and pensioners along with every other group in our society.’ "

 

Pensions sector says Bank of England wrong about impact of QE

 

BOE’s Dale Says Savers Benefited From QE, Interest-Rate Cuts

 

 

 

 

Sun, 08/26/2012 - 18:30 | 2739265 max2205
max2205's picture

That's subjective

Sun, 08/26/2012 - 19:22 | 2739439 JR
JR's picture

Bloomberg:

Bank of England Chief Economist Spencer Dale said U.K. savers have benefited from the reduction in the benchmark interest rate to a record low and the central bank’s bond-buying program because those measures prevented a deeper economic collapse.

 

The stimulus also stopped asset prices from falling as much as they otherwise would have during the recession, protecting the value of savings and wealth invested in financial assets, Dale said in an article in The Sunday Telegraph, published in London today.

All I can say to that is it’s apparently not enough to be a criminal anymore. You have to ask people to believe that when you steal it is because you are benevolent.

This guy makes Paulson look like Mother Teresa.

This is no longer the last chapter for these guys; it's the last few paragraphs.

Sun, 08/26/2012 - 20:14 | 2739620 RockyRacoon
RockyRacoon's picture

So they had to kill the saver in order to save him.  Where have I been served this dish of shit before?  Dollars can kill just as dead as bullet -- just more slowly and painfully.

Sun, 08/26/2012 - 16:54 | 2739059 buzzsaw99
buzzsaw99's picture

nothing new under the sun. bankers have always been parasites. den of thieves. [/bible quotes]

Sun, 08/26/2012 - 16:51 | 2739067 resurger
resurger's picture

" Those who defend it are serving evil."

I had a meeting not long ago with a "keynesian" CFO who runs a Financial Advisory Firm, of course sitting on the board of directors are bigger "Keynesians" who advise the firm...

So i have told him what are the plans do you have for me to invest my money so that i can save for the future of my daughter, he started explaining to me that we can invest the money for you in some US$ Bond (American Dollar denominated bond)  in an investment portfolio in Singapore which yields 12% for 10 years (Those are US dollars not Singaporian dollars)

Here are the Singaporian Bonds S$

https://secure.sgs.gov.sg/fdanet/SgsBenchmarkIssuePrices.aspx

Of course when i asked him about "Gold" & "Silver" they told me it's so expensive and overvalued and has no use in  the industry.

Always remember in case of:

Depression & Great Depression (John Exter)

http://en.wikipedia.org/wiki/File:Exter.png

Inflation & Hyper Inflation

you know.

 

Buy more Gold & More Silver,

The moment of truth will eventually come.

be patient.

 

 

Sun, 08/26/2012 - 16:56 | 2739076 Gamma735
Gamma735's picture

Do you hear the winds of the reaper?  All systems fail eventually.

Sun, 08/26/2012 - 17:34 | 2739134 Juan Wild
Juan Wild's picture

Americans and all people are slaves of fractional reserve banking. Its been this way a long time It is evil. It is why we all feel this life is hell. It is at the root of all despair both personal(unemployment, hunger) and collectively as a world (wars...WARS!!). How could something so obvious be so hidden from view?

I found this a long time ago (forgive me, I forgot where) and I'd like to share it with everyone. I know many of you are familiar with this but we must enlighten more people.

HEGELIAN DIALECTIC

G.W.F Hegel was a German philosopher born in Stuttgart Germany in 1770 and died in Prussia around 1831. He developed a method of dealing with a populace or any body of people now called the Hegelian Dialectic. You will also hear the method described as Thesis-Antithesis-Synthesis and, a slightly modified form referred to as Problem-Reaction-Solution.
The basic conflict involves creating opposing views or camps to control a populace and steer them toward a third way often presented as a compromise but in truth the original objective of the controllers. It is also used to simply create divisions, thereby reducing the likelihood of any body of people uniting against their real societal enemies. In other words, it weakens a body that would otherwise be an overwhelming force. An excellent and current example would be the current Republican/Democrat, Liberal/Conservative paradigm. These opposing views are used to control the populace of the USA and playacted by our politicians when, in fact, they are (most of them) taking their direction from another controlling interest and not the population at all.
An example of how this plays out would be how our current chief executive was elected on a platform that apparently opposed just about everything the former did yet two years into his term has done none of what he promised and amplified the deeds of his forerunner. This is because he and his forerunner are following an agenda dictated to them.
The problem reaction solution formula is best seen in the creation of a non-state actor to hold out as a boogeyman and manipulate the populace into sacrificing their liberties so as to be “secure” from an enemy that can never be defeated because this enemy can be invoked from the mist whenever convenient. Therefore, the objective of increasing control and reducing liberties in preparation for a fascist/corporatist/elitist oligarchy is achieved by the people demanding that they be defended from this boogeyman. This is why Ben Franklin said, “those who would sacrifice essential liberty for security deserve neither.”
A good method for spotting the real culprits behind these stateless antagonists is to answer the simple question “who benefits?”

NORMALCY BIAS

If you are solidly positioned in the Hegelian Dialectic and you believe the lies put forward to you about our political parties, our economy, history, agriculture, money and finance, medical care, social and military policy, the resistant emotion you will experience when I list the following is called normalcy bias:

1. The republicans and democrats are pursuing the same agenda.
2. Our economy is being deliberately imploded by the corporate and banking interests that control the Anglo-American empire because the globalist plan now requires that the western populaces be “knocked off” their standard of living and reduced to serfdom
3. Agriculture has been manipulated to facilitate a eugenicist, population reduction agenda (associated with a program called Agenda 21 and Codex Alimentarius)
4. The Federal Reserve is a privately owned entity. Its control of our currency is unconstitutional. The U.S. Treasury (and the IRS) serve the interests of this cabal. Our currency is a fiat currency (no intrinsic value). They will not default. They will create money from nothing till the US economy collapses into a hyperinflationary spiral.
5. Military spending makes up 75% of the budget deficit. Did you hear either party mention that there won’t be money to bomb Libya? No, of course not. They threaten to cut Granny’s Social Security payments and they are careful to refer to it as an entitlement program. That is a lie. If you are less than 70 years old, that is your money! You paid it in. If fact, it is a rip-off program because had you been able to invest it in a modest program that paid 5% interest a year, your stipend by the time you were 65 would be twice what you would see from that program if they paid you. It is theft, plain and simple.
6. Jesus thrashed the money changers out of the temple. We have let them back in and put them in the pulpit. Few men of God in a church will challenge the current paradigm from the pulpit because the money changers will take your 501c3 status if you do. The message of Jesus has been subordinated to the Luciferians that control the worlds purse strings in America. This is one of the reasons why the Gospel is hampered. Corruption is not the reason the Gospel no longer thrives. Corruption in a man makes God’s argument in the conversion process. However, when the evangelist is a vehicle for lies, even unknowingly, he hinders the message. How can the Gospel spread to the hedonist when the modern evangelical Christian has become the chief spokesman for butchering the unsaved in far off lands? The fallen smell hypocrisy from a mile away.
7. Read Genesis 6. The offspring of the Fallen Angels were monsters. The Sethite doctrine taught in seminaries now is a modern theological fabrication. When looking to explain Aliens, bigfoot, etc… look to Genesis 6 and the book of Enoch. With the current genetic malfeasance, be prepared to see things that “will cause men’s hearts to fail for what they see coming upon the Earth.” Jesus wasn’t joking. Our modern archeology and history are carefully crafted lies to hide the struggle that has gone on between God and Satan and prepare us for a final massive deception.
8. The medical system is designed for profit not healing. The cure for cancer has been known for more than fifty years. It is, in truth, a dietary deficiency like scurvy or rickets. Cancer cells are identical to the cells in the placenta of a pregnant woman. The control for this disease if a healthy pancreas (not too much red meat), allied with a body chemistry that is mildly alkaline (not too much sugar plenty of green vegetables…especially the brassicas) and a chemical called amygdalin contained in foods that read like a list of things Americans don’t eat anymore (barley, lentils, millet, apple and apricot seeds, bitter almonds, etc…). The FDA and AMA are colluding to plunder the American people. Sickness is big money.
9. 9/11 was perpetrated by our own government. Jet fuel (kerosene) does not burn hot enough to melt steel. Buildings that fall from structural damage do not collapse at free-fall speed into their own footprint. Collapsing at freefall speed into its own footprint is called DEMOLITION. The presence of nano-thermite in the dust shows demolition.
10. We are in Iraq because Saddam Hussein’s conversion of Iraq’s oil reserves from dollars to Euro’s threatened the petrodollar. We are in Afghanistan to perpetuate and profit from the heroin trade (black ops, global central banking) and implement a plan designed by Zbignew Bryzinski (sp) in his 1994 book “the Grand Chessboard”) to hinder other centers of power from gaining a foothold in Central Asia and thereby profiting from its resources.
11. Pakistan’s ISI has been running the opium refining centers on the Pakistani side of the Afghan border for over 10 years on behalf of the Anglo-American banking interests.
12. Al Qaeda is a creation of the CIA.

If you are awash in modern American propaganda, of the “Glen Beck” rightwing flavor, you are experiencing normalcy bias because it will be difficult for you to accept any of the things I have written here. These thoughts run contrary to any of the mainstream (left or right) propaganda to which you are regularly subjected.

COGNITIVE DISSONANCE

Put simply this is the experience of holding two incompatible “truths” as true. A common cognitive dissonance in America’s church is the held belief that our current wars are “right” and “justified” (which I held for some time myself) and that killing innocent men, women and children is wrong. So when we hear that our forces dropped a drone on an Afghan wedding party killing little girls/boys, old men/women, groom, bride and extended family because there “might” have been a “suspected” insurgent there, we experience cognitive dissonance. We want to justify our military actions but we know that killing those innocents is wrong. It is as though a detective pursuing a psychopath blows up an apartment building where the target lives, killing all the other inhabitants and justifies it because the target was a really bad man.
We quietly accept torture or our “enemies” even though this is an offense to God because any man is still made in His image. We think it is the “greater good.” This was the rationale used by the evangelical church under Hitler’s regime. They were wrong. We are wrong. We are holding two opposing “truths” as true.
We experience this in many ways when we attempt to shield ourselves from the harsh realities of the plain evil that is being done in our name to achieve the goals of people, many of whom, are not even our countrymen.

DISAVOWEL

This is the process of seeing the truth and choosing to disregard it because to accept it consciously would mean to call into question too much of what we hold to be true. It is disturbing to find (especially as one who knows “THE TRUTH” about the Gospel) that so much of what we believe is a lie that we frequently retreat to the comfort of the lie rather than go through this shattering of our paradigm.

God answers prayer and we asked Him to show us the lies we have believed. He answered and continues to answer. I am convinced that the truth does not thrive in a man if held common with lies.

Sun, 08/26/2012 - 18:45 | 2739312 Optimusprime
Optimusprime's picture

Give Hegel (whom you have obviously never read) a break, please.  It is idiotic to say, " He developed a method of dealing with a populace or any body of people now called the Hegelian Dialectic."

While it may be true that ideological/political manipulators have discovered a way to "utilize" a certain pattern discernible in his philosophical analyses for their own purposes, such was far from Hegel's own ambitions.

Marx started the process of claiming there was a "rational" element to Hegel's "dialectic " that could be extracted and used for revolutionary purposers.  Later ideological manipulators like Edward Bernays (Freud's nephew and just possibly his illegitimate son), author of Propaganda (1928), moved along the process of figuring out how best to shepherd along the masses through managing the terms of discussion and debate. 

Thus wiseacres like you are now blaming Hegel for noticing and memorably describing and demonstrating the process by which disagreement/contradiction is discovered, developed and "resolved" as if this is some sort of crime.  The crime is due to manipulators and exploiters who use Hegel's discoveries in a nefarious manner.

Sun, 08/26/2012 - 20:47 | 2739724 MisterMousePotato
MisterMousePotato's picture

I tend to view "Hegel's discoveries" as in and of themselves nefarious. I studied (read every word) of Western philosophy up to Hegel. Agreed with much, if not most of it, up to Kant; indeed, it resonated with my heart and mind. Hegel, though, represented (IMHO) not an evolution of Western philosophy, but an absolute departure therefrom. I found him no less bizarre and foreign, in fact, than Nietzsche and other more recent thinkers. Frankly, I scorned it and tossed it aside.

Imagine my surprise when I discovered decades later that Hegel's approach underpinned every debate in my adult lifetime (i.e., "Are you for the spotted owl or do you want to cut down all the trees, destroy the planet, and kill children?")

Huh?!? Ridiculous as my example may sound, I invite you to think about it for a second? How else does one explain the complacency over the destruction of farming in central California over (purported) concerns about a tiny, insignificant fish of no value whatsoever - and, furthermore, one that is not even indigenous to America?

Just nuts. We are, in fact, doomed unless and until we (all of us) can start to see past the false and dishonest constructs controlling the debate of the issues important to our future.

Sun, 08/26/2012 - 20:18 | 2739636 RockyRacoon
RockyRacoon's picture

Problem-Reaction-Solution

Government - Pissed - Revolution

Bankers - Robbery - Guillotine

Hey!  That's easy stuff.  I'm getting the hang of it.

Sun, 08/26/2012 - 18:12 | 2739142 monad
monad's picture

.

 

Sun, 08/26/2012 - 17:39 | 2739143 A Lunatic
A Lunatic's picture

Well that settles it then......... Somebody should do something!

Sun, 08/26/2012 - 17:42 | 2739151 Wakanda
Wakanda's picture

Great article CHS!

Some of us remember what evil means,

What it means to be whole instead of fractured,

What honest money and honest commerce builds between neighbors,

The Second American Revolution - unfolding now in a neighborhood near you.

Sun, 08/26/2012 - 17:56 | 2739172 Meesohaawnee
Meesohaawnee's picture

revolution is not gonna happen. too many distractions. their called snookie,kartrashian iphones..etc... Mechanism built soley to numb the mind.

Sun, 08/26/2012 - 18:09 | 2739202 eaglefalcon
eaglefalcon's picture

The picture says money is the root of all evil, that's not true. The love of money is te root of all evil

Sun, 08/26/2012 - 19:31 | 2739477 Anusocracy
Anusocracy's picture

The desire to dictate how someone else should live their life is the root of all evil.

Sun, 08/26/2012 - 18:11 | 2739209 proLiberty
proLiberty's picture

When the Fed, or a counterfeiter, creates currency, it is embezzlement of wealth by dilution plain and simple.  The Fed has a "targeted rate of inflation" by deliberate policy, presently 2%.  At that rate, over the lifespan of an average American victim, the value of the currency will be diluted by about 4.5X.  

Libertarian thinkers like Lew Rockwell tell us that the modern welfare state cannot exist without governmnet having the ability to create money out of thin air and inflate/dilute payments to dependents.   Government is also very constarined in conducting war because unless it is urgent, citizens do not way to pay for it.

It is for these two reasons that supporters of big and Bigger government hate a gold-based currency.  

Happily, a lot of average people are coming to see the plain truth about their money.  This issue has risen to a high enough level of interest that at least we are talking about it much more in the presidential election cycle.

 

Sun, 08/26/2012 - 18:13 | 2739219 SheepDog-One
SheepDog-One's picture

You cant REALLY 'transfer wealth' at all, you can transfer money but money is not wealth. The Fed is a monetization machine and thats all it can do, print money and buy things for themselves.

Sun, 08/26/2012 - 18:14 | 2739223 francis_sawyer
francis_sawyer's picture

important distinction...

Sun, 08/26/2012 - 18:40 | 2739297 falak pema
falak pema's picture

and in the mind's eye of the greedy, the socialisation of debt balances THEIR profit accumulation; admittedly in fiat form or FIRE economy form.

Bottom line for their perspective : if the whole fiat cake falls apart, you're better off in a depression if you have "assets", even fake money ones, than if you have nothing. Just stay out of debt! 

So the FED pump does serve a purpose for the benefit of the happy few.

Sun, 08/26/2012 - 18:23 | 2739232 Spastica Rex
Spastica Rex's picture

But didn't Michael Douglas say something like "Evil is good" in a big movie back in the '80s? As an American, I get really confused about what I should believe. I certainly can't watch every new movie that comes out.

Sun, 08/26/2012 - 19:33 | 2739489 JR
JR's picture

Pricleless!!!

Sun, 08/26/2012 - 18:26 | 2739250 falak pema
falak pema's picture

Putting the dots all together. But mainstream America will never want to understand why its going to feel more and more the pain of economic deprivation. 

Not want to understand why this  current crisis is the logical conclusion of a trajectory started in 1913 for the money line, in 1949 for the MIC line, and in 1973 for the oil monopoly line. The convergence of these three lines is what out modern power system is all about since the empire became #1 in 1945. Our 'dear Henry' masterminded that overall plan of ME convergence and mIC MAD 'detente' in its globalised form, leaving the local conflicts as focal points of political consolidation under the now tentacular trilateralised oligarchy empire. 

And the money circus hotted up from NWO 1990 days onwards, when outsourcing became the rage, "as the US towered like a colossus after Berlin wall fall"; no more enemies to hold back the empire's deepest desires...both blue and red bought into that new financial mantra. The economy stupid! 

Now its the accumulative source of evil, the money line gone virally out of gear. But the rest is there, the oil lobby and the MIC lobby. Makes the cocktail even more explosive, as we now have big food and big pharma lobbies which have joined the global matrix game.

CHS is coming up short on the multiple facets of this ominous cabal. 

Its all pervasive and if the money line falls, it begins to come apart. So the corrupted money line, victim of hubris, is the nerve center of this empire.

And the people still have their say in that. If they wake up in time. Before what little freedom is left disappears in the context of a new casus belli. Twin Towers or Sarajevo type moment. Its the time honoured way to try and instill more control and manipulation or to fight for more hegemony against new entrants. 

Today its Eurozone that is in the eye of the financial cyclone, Syria under the MIC gun.

Tomorrow...so many balls up in the air. Its difficult to swallow this story on a US blog, especially in election fever.

Kudos to those who understand it IMO. There are those who feel this is the natural evolution of empire play. Well, 'as long as the victims were not citizens of the empire itself', was the verdict of past history. Looks like that line has now been brutally crossed like a Rubicon, on both sides of the first world pond. Those who are now in the club are the neo-feudal few. 

That changes the impetus of western civilization back to an age we used to called "dark". 

Where do you go in the dark? Only to darker oblivion. Unless you are Neil Armstrong. He deserves another fate. But that is part of "metaphysics" and we stay here on planet earth; until we don't. 

Isaac is not the only cyclone on the horizon. 

Sun, 08/26/2012 - 18:26 | 2739253 Spastica Rex
Spastica Rex's picture

Wow.

What I gather is that there is no such thing as collective free-will.

Humans are bees and this is the hive we are making.

Sun, 08/26/2012 - 18:51 | 2739337 akak
akak's picture

Resistance is futile.

Sun, 08/26/2012 - 21:20 | 2739810 CrockettAlmanac.com
CrockettAlmanac.com's picture

"I like my species the way it is." -- Lt. Worf

Sun, 08/26/2012 - 21:27 | 2739825 Spastica Rex
Spastica Rex's picture

+1 for all Star Trek references.

Sun, 08/26/2012 - 21:32 | 2739837 akak
akak's picture

"We are the Banksters.  Lower your gold and silver shields and prepare to surrender your savings.  We will add your monetary and financial assets to our own.  Your cultures will adapt to service us.  Resistance is futile."

Tue, 08/28/2012 - 22:08 | 2745455 Old Rick
Old Rick's picture

The Federal Reserve Manual: "How to Serve Man"; IT'S A COOKBOOK!!

Sun, 08/26/2012 - 21:11 | 2739785 JR
JR's picture

The man in the street does not notice the devil even when the devil is holding him by the throat.—Johann von Goethe

The last act of the October 1956 Hungarian uprising against the Soviet slave masters was a plea to other freedom-loving people around the world. A group of freedom-fighter seized control of a radio station and broadcast this desperate message to the world:

People of the world…help us!

People of Europe, whom we once defended against the attacks of the Asiatic barbarians, listen now to the alarm bells ring.

People of the civilized world, in the name of liberty and solidarity, we are asking for you to help.

The light vanishes.

The shadows grow darker hour by hour.

Listen to our cry.

God be with you and us.

The free world never came… Only the Soviets came and shut the station off the air...

Back, back to darker oblivion...

The silent scream…heard by the world and ignored…

Mon, 08/27/2012 - 06:51 | 2740426 falak pema
falak pema's picture

reminds me of what we heard in the early days of Syrian uprising. 

Mon, 08/27/2012 - 09:38 | 2740692 i-dog
i-dog's picture

Yet another black mark against that treacherous Eisenhower muthafucka! ... not that the "brotherly loving" socialist pussies in Europe get a free pass, particularly since Britain and France set up the 'Suez Crisis' at exactly the same time as a diversion for public consumption and therefore an excuse for not acting to help Hungary....

Mon, 08/27/2012 - 12:25 | 2741091 JR
JR's picture

Powerful compilation of the true history and not the history of Establishment compacted into a single shot that hit’s bullseye…

Sun, 08/26/2012 - 18:41 | 2739300 Waterfallsparkles
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So, we are all back to giving our Harvests, our work and labor to the Feudal Lord called the Federal Reserve and collection of that Harvest called the IRS.

Sun, 08/26/2012 - 18:50 | 2739334 kornholio
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Bullish

Sun, 08/26/2012 - 18:54 | 2739344 cosmictrainwreck
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Well, unfortuntately, I can hear the fucking Overlords chuckling. Futures JUMP, right out of the gate. I repeat my same ol' song: where are the fucking lawyers who are not bought & paid for already & also have balls? Oh, I forgot.... it's all legal, right?

Sun, 08/26/2012 - 19:20 | 2739416 q99x2
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Abolish the FED and then hang the crimminal deviate financial terrorist bastards or hang them beforehand. Just hang them for all to see. I think the justification for such action is contained within the guidlines of the NDAA.

Sun, 08/26/2012 - 19:21 | 2739430 orangegeek
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"... There is no good or evil, there is only the paycheck "earned" by serving one master or another. ..."

 

Exactly.  There's only agendas out there.  No ideologies.  Just gobs of cash creating and pushing agendas.

 

We'd have universities publishing white papers (paid off by the corporations) about the benefits of shoving ball point pens up our noses for health benefits if it mean greater product consumption/higher sales and greater profits for those participating corps.  And the FDA, so long as it gets its cut, would be happy to rubber stamp the process.

 

 

Mon, 08/27/2012 - 00:02 | 2739647 kayl
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People discuss the Open Market Operations of the Federal Reserve, which are quite obvious on the Macro scale, but what about the operations of the Region Federal Reserve Banks that suck the living daylights out of every poor sucker who looses his house, becomes a prison debtor, or just owes fines, fees, and miscellaneous debts for failure to pay for the millions of state, county, and city statutes.

I've been following the trail of debt sold upward from the city, county, and up to the state. It seems there are agencies that bundle the indebtedness into securities, sell them on the stock markets, or they go as pledges to the regional Federal Reserve Banks as collateral. California pledges houses to the Federal Reserve Bank of San Francisco, and then California gets debt monetization from the FRB. Technically, California must be getting a killing in fiat dollars from the FRB during the downturn.

Who is willing to discuss that part of the bureacratic pyramid?

Sun, 08/26/2012 - 20:33 | 2739682 yogibear
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The Federal Reserve and the government's wealth grabbing organization, the IRS, were created at about the same time (1913). 

QE3 will be announced this Friday (8/31) . More Bernanke and the Fed counterfeiting to make Wall Street happy and get Obama re-elected.

Sun, 08/26/2012 - 20:50 | 2739733 Westcoastliberal
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The US has been FUBAR now for quite some time, dating back at least to the Reagan administration.  You fans here DO realize he was an actor, don't you?

The now disowned "trickle down" theory was the start of it, now it's just a blatant shakedown with "whatcha' gonna do 'bout it" as the answer to any seriously getting down to brass tacks. 

The dubbing of Bush/Cheney the winner by Scalia totally opened the floodgates, and untold Trillions have flowed from the taxpayers coffers into those of the special few.

This will continue until someone stops it.

Sun, 08/26/2012 - 21:25 | 2739821 CrockettAlmanac.com
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Just keep on a-hopin' and a-changin'.

Sun, 08/26/2012 - 20:52 | 2739743 SKY85hawk
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Charles:

I have always read your works and considered you to be the Voice-of-Reason.

Has something changed?

I'm not used to such a sense of hopelessness from you!

I feel helpless, as a little guy, but I see opportunities in the investment world.

I've been converting 401-k money to a Roth-Ira for several years.  Since I'm not working there are no tax consequences to the conversion amounts that I choose each year.  Yes, I file, accurately.

Now, I'm riding the wave(Bollinger) of ERX, ERY and FAS, FAZ.  I'm getting base hits, no home runs.  Over 12 months I am able to cover our living expenses + a getaway trip or 2 each year.

Leave a note where I can contact you and I'll share more of my process. I know nothing about secure e-mail, but can follow instructions.

I would like to suggest that you consider my survive-the-slump plan and perhaps modify/recommend it to your readers. 

Best Regards,

T

 

Sun, 08/26/2012 - 21:12 | 2739788 Radical Marijuana
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Unfortunately, agreeing with that article makes no difference to the continuing social reality. Like so, so many other people, who spent a few decades of their lives attempting to do something about this runaway insanity of triumphant fraud controlling our civilization, I have belatedly been forced to accept the social reality does not appear to support any eventual actual success for that project.

Our real human ecology can be metaphorically described as being made up of a large group of people that act like brain dead sheep, who are getting routinely fleeced, and are being set up to be slaughtered, by a relatively small group of wolf-people that specialize in being dishonest and violent.  Turning into a black sheep that faces those social facts does not actually change much of anything.

Most people who work long and hard at this problem eventually are forced to face that reality that enough people continue to be sheeple, and continue to be fooled enough of the time, to keep the established systems going.

A lot depends on where in the cycle of waking up to these facts one happens to be. One can start by knowing nothing about the fractional reserve banking system ... When one first learns about that, one will go through various levels of awakening, and various levels of hoping that enough other people will also learn about that, and do something significant to change it ... until, much later, one may belatedly discover that enough people are apparently never going to do that ...

I WISH that I could come to a different better conclusion!!! However, after working on these problems for a few decades, and after talking to a very large number of people from different walks of life, I have been forced to face the fact that the reason there is the 99% versus the 1% is that the 99% ARE political idiots, and the 1% work hard to keep things that way!

My currently dismal conclusions are that the only things that stops the madness of runaway triumphant frauds, the Big Lie, is that it drives itself too mad, and so, finally destroys itself due to its own psychotic breakdown. ... However, even then, new systems of lies and violence, serving new systems of organized fraud and robbery, emerge from the seed sources of the old systems.

Although I expect I will continue to work towards political miracles of general enlightenment for as long as I can continue to do so ... I am long past the point where I believe anything but that that is an irrational hope. All the social facts appear to be that things are getting worse faster, at rates far exceeding the rates at which enough people are waking up enough ...

Not long ago, not one person in a million understood fractional reserve banking, etc., while now there are millions and millions of people that do.  But still, the political reality continues to be the runaway triumph of the parasite/predators, destroying their prey, while the prey continue to act like brain dead sheep, being fleeced ... and the most likely future is not that enough of those sheep shall remember that they should be wolves too, instead of simply, in the end, be slaughtered.

One of the worst problems continues to be controlled opposition, led by reactionary revolutionaries!  No sooner does some group of sheep turn black, and start to balk at being fleeced and slaughtered, than some new wolf in sheep's clothing infiltrates that group, and takes it over, with their ability to bring new money to fund it.

We are up against a group of trillionaire mass murders, who can make endless money out of nothing, and can use that with almost no moral scuples to accomplish their goals.  I find that organizations with no money go nowhere, while, those who get money tend to be destroyed by the sources of that funding.

.... Like I said above, after several decades of working at these kinds of problems, I have finally ended up being forced to admit that I actually have no practical solutions.

As far as I can tell, our civilization has gone rotten to the core, but that learning about politics becomes like learning one has a terminal disease. One tends to run around looking for miracle cures (and I still DO), however, the objective reality looks like that rotten disease shall kill us.

Sun, 08/26/2012 - 22:14 | 2739934 Bartanist
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Ultimately we can only preserve our free will and control ourselves. One can surrender their free will to be subservient to the will of others. Some might argue that a comfortable life, being part of the power structure, fame, fortune, whatever is worth the price of surrendering their free and and most likely becoming a pawn of evil.

It is not my choice.

Sun, 08/26/2012 - 22:21 | 2739949 Westcoastliberal
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I dispair that I'm pretty much in agreement with your post, with one exception.  The rotten disease that our civilization has become will not kill us, at least no time soon, but it will collapse under it's own greed.  Already happening in China as demonstrated by the new $300 million bridge that collapsed after just nine months.

http://www.nytimes.com/2012/08/25/world/asia/collapse-of-new-bridge-unde...

When the result of greed permeating our infrastructure here shows up en mass, things will collapse in a domino effect.

We might then have a voice, until them, it's the same crap from any political party, and they've got us by the balls.

Sun, 08/26/2012 - 23:43 | 2740078 newworldorder
newworldorder's picture

RE: radical marijuana,

1000% +

The Red pill/Blue Pill "Matrix" analogy is very aptly descriptive of this article.

The political/financial power structures have given the "Western worlds" human nature, the stability it craves through the illusion of bread and circuses.

The economic upper 10%+, - they have unequaled access, easy finances, the world at their feet and the potential promise of becoming the 1%

For the economic lower 25%+, there is guarantee of continued sustenance, continued envy, and continued guarantee to the multinational corporations that their consumer will continue to consume the basic staples that generate profits, especially, the sugar making, calorie making, apparel and pharma making corporations. (No pitchforks or torches allowed)

For the rest of us - the go to work every day, tax paying, police the world , keep the corporations safe and try to do the right thing crowd, just keep on doing what you are doing. You are the economic and social engine that keeps things flowing. The carrot is always swinging before your face enticing you toward greater/faster/longer/ effort to subsidize everyone else. You can be taxed, cheated, and prodded to perform at the will of the landlord, without much recourse. All it takes is a a little divide and conquer strategy with a little fear thrown in for good measure.

 

Mon, 08/27/2012 - 08:38 | 2740541 m111ark
m111ark's picture

What you see, what most of us see, are symptoms.  Your error is in trying to solve symptoms.  Once you correctly identify the Problem, you'll change your tactics.  A problem of this magnitude requires centuries, even millennia to make right.  It is the ONLY sure way to correct the ills you so presciently observe.

While it is the responsibility of each of us to grow to the point where we can correctly distinguish problems from symptoms, what you are really attempting is to turn savages into civilized people.  That is the ultimate quest of humanity's long struggle...not entirely up to us... so don't feel so bad that your efforts have seemingly produced little results, for they surely have.

Sun, 08/26/2012 - 21:30 | 2739833 Dr. Gonzo
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This is not how CNBC teaches it. 

Sun, 08/26/2012 - 22:17 | 2739924 Bartanist
Bartanist's picture

IMO, people in general have not lost their moral compass. There are a few who know there is a choice and that have chosen evil. There are a few who know there is a choice and have chosen good. However, the vast majority of people first of all do not know that they must choose and they are being bombarded daily by the messages and influences of evil. This bombardment prevents them from making a choice and attempts to make evil appear the norm. The media, government and controllers of the world (choose your own bogeyman) want to make it seem as if evil has won and people have lost their moral compass... however turn off the TV, don't read the nrespaper, go out into the street, talk to the people around you and you will know this is not true.

I know many, many good people; many more than the number evil people I know (and I know some of them as well).

Internally, we know how to tell the difference between good and evil; both acts and people... and know how to choose good or evil  for ourselves. Amongst other things, we are here to make a choice.

Sun, 08/26/2012 - 22:28 | 2739958 Bartanist
Bartanist's picture

Money is a tool used by evil to enslave the good and the ignorant. In this case it is better to be a slave than a slaver and better to be poor than rich.

The exit from a pyramid is from the bottom, not the top ... and not many rich camels fit through the eye of a needle.

Mon, 08/27/2012 - 15:37 | 2741691 Liberty2012
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Nope - money is a tool for good. The corruption of money is a tool for evil.

Con men use truth to tell lies. That doesn't make the truth evil.

Sun, 08/26/2012 - 22:54 | 2740015 Never One Roach
Never One Roach's picture

It's nothing less then Diabolical.

Sun, 08/26/2012 - 23:19 | 2740055 carlsbadip
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Fascist are statists just like the Marxists that have attempted since 1927 to claim the two philosophies Do notvcome from the left. Fascism is socialism in one country that Stalin adopted from Musolini. Only the hard core Maxists try to claim it is not a leftist statist philosophy. Marxists had no choice because it became a competitive philosophy. The dividing points for the Marxists who started fascism were man was more than materialism as Marxists claimed. The second point was Nationalism. Marxism has always been anti-nationalism.

What both share are a high degree of corruption so that those in power stay in power by taking care of their powerful friends. The Federal Reserve was an invention of the Progressive Era (in America Progressive equals Marxist). The Fed would be part of the control and protect and enrich the status quo. Nothing has changed since 1913.

Mon, 08/27/2012 - 15:33 | 2741677 Liberty2012
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The dishonest trade (theft of work) inherent in fractional reserve banking creates a gradual slide into the casual regard of evil. As time progresses under a corrupt payment system, more and more choices are made on an ever finer point - creating the illusion that all choices are between evils.

Reality is good. Always has been. Always will be. Particularly when it doesn't seem like it . ;)

We the People create the world we live in with every choice we make.

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