Guest Post by Martin Armstrong
With all the conspiracy theories that somehow the bankers are the real culprits in creating excess money supply, there has been an evolution in central banks that has finally crossed the line since 2019. The Federal Reserve was, once upon a time, responsible. The Fed was originally designed as an authority to create money, which was an elastic money supply. That made perfect sense when the Fed was designed in 1913.
Yes, the bankers owned the shares BECAUSE the Fed was actually designed to do what JP Morgan did in herding the bankers together to save the day during the Panic of 1907. Morgan convinced the bankers that if they did not chip in money to bail out the troubled banks, panic would unfold, and ALL the banks would be hit as a contagion. They listened and joined his effort to stem the Panic of 1907. The design of the Fed was to recreate what JP Morgan put together. The shareholders were the bankers because it was a bail-out fund for the bankers, and TAXPAYER money should not be used to bail out the bankers.
Democrat President Woodrow Wilson signed the 1913 Act, creating the Federal Reserve as well as the income tax. Wilson signed the Revenue Act of 1913, which lowered average tariff rates from 40 percent to 26 percent. It also established a one percent tax on income above $3,000 per year; the tax affected approximately three percent of the population. The Federal Reserve, as designed, was independent, and thus there was the Fed policy v fiscal policy set by Congress.
The elastic money was a brilliant idea where the Fed would buy-in corporate paper to provide lending of the last resort when the bankers could not lend due to the hoarding of cash in a crisis. The corporate paper was typically 90 days. When World War I came, Congress ordered the Fed to buy its paper because they would need to issue a lot of debt. They never returned the Fed to its original design to “stimulate” the economy by directly purchasing corporate paper to prevent companies from laying off employees. Therefore, the structural alteration of the Federal Reserve for World War I transformed the theory of Quantitative Easing into an INDIRECT stimulus rather than DIRECT. When the Fed bought only corporate paper, it directly stimulated the economy. When it was instructed only to buy only government paper, which the government NEVER pays off, any idea of the stimulus was wiped out, for at best, it became INDIRECT.
Then Roosevelt came, and he wanted to control everything. He seized the Federal Reserve and took the power of all the branches, and consolidated it into Washington. Section 203 of the Banking Act of 1935 changed the name of the “Federal Reserve Board” to the “Board of Governors of the Federal Reserve System.” Roosevelt’s Banking Act of 1935 also made major structural changes increasing the number of members of the Board appointed by the president from six to seven to ensure he now controlled the Fed. He created for himself the authority to designate one of the persons appointed as “chairman” of the Board and one as “vice-chairman” of the Board, each to serve in such role for a term of four years.
As I have explained in “Manipulating the World Economy,” there was a huge confrontation between the Federal Reserve and the White House. The Fed was directed during World War II to maintain par on US government bonds to fund the war. The Fed was ordered to engaging in what we call Quantitative Easing. Then the Korean War came, and the Fed rebelled. They refused to continue to engage in Quantitative Easing.
The Federal Reserve then stepped in to bail out Long-Term Capital Management in 1998, a failed hedge fund, because if it did not, it would have taken down Goldman Sachs. So instead of allowing that, they bailed out the hedge funds when they really had no authority to do so. That abuse of power led the Fed to then support the bankers who were engaged in manipulating markets to create guaranteed trades.
Then the Financial Crisis of 2007-2009 took place when the bankers got AIG to guarantee their dodgy mortgage bank securities. When that all collapsed, the Federal Reserve again bailed out AIG, an insurance company that was operating from London, instead of the US banks. They claimed they did not have the authority to bail out Bear Stearns and Lehman Brothers, which were competitors of Goldman Sachs and investment banks. But they apparently had the authority to bail out an insurance company in London, which again saved Goldman Sachs.
The automated clearinghouse (ACH) system is changing to allow direct deposits from non-banks. On December 23, 2019, the Board approved modifications to the Federal Reserve Banks’ National Settlement Service and Fedwire Funds Service to support enhancements to the same-day ACH service. On September 25, 2020, the Board amended the implementation date for certain modifications. They are preparing for a digital currency, but this means two things. By this expansion, they are planning for the long-term for the elimination of public debt, in which case there will no longer be primary dealer banks, and hence no need to bail out the banks when they blow up on trading, assuming they will still be allowed to trade in the future.
Once the Fed moves to create its own digital currency, it is no longer the independent entity it was once supposed to be.
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The blood sucking tick (the FED) is bigger than the dog (USA) it’s been sucking blood from for the last 100 years. I know I’m dreaming but exactly why is it we don’t have the Treasury print our money, interest free?
Not many understand how devastating a digital currency will be. It is a death knell for any remaining freedoms we have.
A barter economy will spring up to circumvent a digital money economy but it will be severely limited in scope.
The window is closing on things you might want to purchase before those purchases are rendered “inaccessible” by some govt edict!
We are only months way from the last 8 years commencing:
Oh here go the dispies, Darby’s fantasy come true, hold on to you shoes. Watch Damascus!
Not seven years? Bait and switch is a tortious action.
Pretty sure that the last world leader who mounted a successful opposition to the Central Banks had his entire nation firebombed in a Hellstorm.
That’s why our Treasury does not print money free of interest.
Four great men opposed the banks – Jesus, Andrew Jackson, Adolf Hitler, and JFK – and look what happened to them.
Quite the list of historical figures and a fabrication. Jews were against banking rape long before anyone else caught on, thank Jesus!
Deuteronomy 15:6 (Old JPS):
6 For the LORD thy God will bless thee, as He promised thee; and thou shalt lend unto many nations, but thou shalt not borrow; and thou shalt rule over many nations, but they shall not rule over thee.
Deuteronomy 28:12–13 (Old JPS):
12 The LORD will open unto thee His good treasure the heaven to give rain of thy land in its season, and to bless all the work of thy hand; and thou shalt lend unto many nations, but thou shalt not borrow.
13 And the LORD will make thee the head, and not the tail; and thou shalt be above only, and thou shalt not be beneath; if thou shalt hearken unto the commandments of the LORD thy God, which I command thee this day, to observe and to do them;
Now do the Talmud.
Central banking is founded on tyranny. How could it be any other way?
If Jews weren’t involved.
FDR…second worst president.
Abraham Lincoln…first place.
Been going downhill since Ronnie.
Under Ronnie:
1. Wall Street continued to buy up local hospitals for incorporation.
2. 1986 Amnesty law.
3. Saving and Loan Bubble.
4. Beirut Bombing 1983.
5. Happy Military Industrial Complex.
Scott MacLoed, “Key Marine sentry says gun was unloaded when Beirut bomb truck came”:
“Rules of Engagement and Non-Lethal Weapons: A Deadly Combination?”, CSC 1997:
Ask not for whom the Voltaire quote was directed, for it was directed to thee.
Still not getting it!
Description of youtube video:
Bonkers! LBJ not in that list? Besides Abe paid the price.
“That made perfect sense when the Fed was designed in 1913.”
Perforated sense, maybe? I knew a guy got a perforated eardrum. First a lot of pain, later, silence.
In restless dreams I walked alone
Narrow streets of cobblestone
‘Neath the halo of a streetlamp
I turned my collar to the cold and damp
When my eyes were stabbed by the flash of a neon light
That split the night
And touched the sound of silence
Does anyone know if Stripe or Square are going to be ratting their clients out to the IRS like PayPal is now?
Are you fucking kidding me.
Next thing your gonna tell me is that kosher Jim Kunstler is a conservative on our side. He sure gets traction.
Does the Pope shit in the woods? The central banksters don’t care if they wreck your life, starve entire regions, inflict major despair. The elites need their vast fortunes to enjoy their lives. Sheesh……
Worse still, they do care if they don’t. They keep caring. Don’t tell After-the-Fact Warrior.
Do this
https://www.zerohedge.com/markets/enraged-evergrande-investors-go-full-pitchfork-hold-management-hostage-company-offices
Demented Idiot Moron and pals massive Ignorance and Stupidity reviewed.
OK, it is one thing to pander to the ignorant children saying on camera, “we are going to eliminate fossil fuels”, and actually take steps to hurt the the middle and bottom tier of the population that have to drive to their jobs to make money to pay for groceries and taxes with the costs accelerating like never before.
Next November the hammer falls, hopefully.
https://www.zerohedge.com/markets/democrat-insanity-peaks-biden-shutters-pipelines-then-baffled-when-gas-prices-rise
This issue as a priority has considerably lower considering that Doctors/Nurses/Researchers are lying and conniving, killing and enriching, as they harvest the commodity called humanity.
Congogress (or the commies) violated the Constitution when they created the Feral (of all names) Reserve. Only CONGOGRESS can coin money or tax it.
Not the Feral (of all names) Reserve nor the IRS (Internal Robbery Service). They cannot delegate their duties to private institutions. Can you imagine if they delegated their duties to a private corporation called Congogress Corparation of Amewicka and hid behind dat?
We would be up in arms but somehow when it comes to collecting and making FAKE money, it’s uh, OK. After all, it’s just money. Phew……
This is a GROSS violation of their duties not to mention treason but nobody bothered to NFARCE the law and hang them so here we are with worthless change.
The Federal Reserve bank is a private bank and not part United States Federal government. It is not a central bank like Communi
The Federal Reserve bank is not a central bank like communist Russia and China.a book called the creature from Jekyll island by Griffin goes into more detail.
the creature from Jekyll island – the actual book – is what you want to read
https://archive.org/details/pdfy–Pori1NL6fKm2SnY
So how was the Fed’s bailout of Continental Illinois in the 80s any better than the bailout of LTCM? Perhaps because it was conducted by St. Volcker.