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Must read about Federal Reserve

Old 12-18-2011, 06:28 AM
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Default Must read about Federal Reserve

This is a cut and paste from zerohedge and commentor truth and sunshine, it is a great article and written very well. Let me know what you think?

CONfidence Ponzi will run as long as until a certain % of the population becomes even the slightest bit awakened to how fiat currency is created, where it comes from and how it ultimately adversely impacts them and their standard of living and opportunity costs. This % doesn't necessarily need to be very high; if 10% or even 5% or so of the population essentially chose to opt out of the fractional reserve fiat currency game (see below as to how), this could be more than enough to cause critical problems for the fractional reserve banking scam & govermental confiscation schemes (U.S. citizens are really taxed at levels exceeding 90% when all fees, levels of taxations and inflation are taken into consideration). Moreover, if 5% became aware to the point that they chose to opt out, this would indicate a trend was underway whereby that % would soon be 15%, and 25%, and so forth (as the government tried to dig fire breaks, in what would then be a destined to fail bid to keep the Ponzi alive).
The last thing the fractional reserve central banks want is to have to fight alternate currencies, whether they're being used openly or underground, as this threatens their very existence, and also neuters their ability to affect the economy (if even only marginally) via monetary policy; this is why the Federal Reserve was given a monopoly on the creation and distribution of what is the only legal 'tender' for the payments of all debt, both public & private, via the use of Federal Reserve Notes (not dollars or greenbacks) having no inherent value other than a claim that the face value of the note will be honored by way of the full faith and credit clause; this is why barter is highly discouraged, why the wider spread the use of alternate (and real) money such as silver and gold coins is punished (and if the practice broadens enough, is always and inevitably made illegal, with confiscation likely); this is why the banking system as we now know it, with banks networked with the Federal Reserve, would completely collapse if Federal Reserve Notes had any significant competition, as no one would choose the DOZENS of layers of taxable events and transactional costs associated with using the monopoly fiat that is Federal Reserve Notes if they had any viable alternative; this is why Alan Greenspan wrote (prior to his time as an official and ultimately a Chairman of The non-Federal Reserve non-Bank) that gold was the ultimate enemy of the fractional reserve banking system, as its widespread use as currency would completely lay bare the confiscatory system of wealth robbing schemes, on many layers, that is a fractional reserve banking system, and why fractional reserve central bankers viewed gold with hostility, and would go to any lengths to ensure that it (or any other inherently valuable asset that could be used as alternate currency) would never be allowed to be supplant the use of Federal Reserve Notes; this is why central bankers do not highlight and grimace at open discussion of and attention paid to historical events whereby fiat was depegged from the gold standard, or events where any constraint on the ability of the central bank to conjure fiat from thin air at no cost to it was done away with (events such as Bretton Woods, or, even more fundamentally, the 1910 meeting on Jekyll Island, Georgia, whereby the Money Masters revived a central bank that had been killed three times prior).
Given a choice, if it were legal, rational people would choose to trade their skills, physical goods, etc. in exchange for those of others, as the transactional costs in doing so are de minimus, and the transactions yield far more efficient gains, free of fractional reserve parasitism and governmental 'middle man cuts.'
Think of this one example:

This is a great example:
Mr. Smith is self-employed, and a very successful businessman. Let's say that he is a real estate developer. For every dollar of revenue that Mr. Smith generates, he will keep a mere 20 cents up until the time of his death, and after that time, every dollar he earned and saved will be reduced by well over 95%.
He pays a corporate and/or personal tax rate of at least 28% and as high as 36%, for starters. He then pays a tax to the state he lives in which could be ashigh as 12%. Every time he purchases something with each dollar, there is a general sales tax, with additional taxes on many purchases, such as gasoline, alcohol, etc. He pays tax on each piece of real estate, whether vacant, or with a structure of any kind on it. He pays a personal property tax. He pays a tax on his employees. He pays taxes and fees for licenses, permits, and other red tape schemes.
At just this point, he has had the federal, state and local authorities take in excess of 50% of each and every dollar he has generated through his work, ingenuity and industry.
After the 50%+ is put into a bank or other saving instrument, inflation of about 2.2% to 4% annually erodes his savings, and any interest or dividends are taxed by both the federal and state, again.
So, depending on for how long Mr. Smith lives, he will see another 15% to 30% loss on the money he has saved, on top of what was taken prior.
Then, at the time of his death, the government will take another massive amount from whatever he has managed to save, and that amount could be as high as 55% under current federal estate tax rates.
A NON-FRACTIONAL RESERVE FIAT system wouldn't allow the banks and the government to essentially swipe this insane amount of savings that was produced from individual effort in such an eggregious and punitive manner.
http://www.constitution.org/mon/greenspan_gold.htm
"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
--Alan Greenspan, Gold & Economic Freedom (1966)
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Old 12-18-2011, 06:55 AM
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Sorry...I need more coffee.....
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Old 12-18-2011, 07:08 AM
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Interesting.

The article seems to encourage owning gold because inflation does not reduce its value. The reason gold has value is because people want it and the supply is limited.

The same could be said for land.

The trick with either is buying quality and not overpaying.
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Old 12-18-2011, 08:10 AM
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ZeroHedge is one of the best resources for what is really going on in the global economy. It is incredible to see $1/2-trillion quietly slides out of the US, under the radar, into the Euro banking system, and disappear. The transferred money quantitatively erodes the value of the money we have and use everyday.

Keep in mind, as we begin to enter into the Fed's QE-3, the newly minted money is created at the current value. The receiving banks enjoy the full value of that new money. Then, over time, the influx of that new money works to bring down the value of all existing money thru inflation. But by then, the value of the new money was already realized as the banks used it to promptly pay off debts using the new money at its per-inflationary value.
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Old 12-18-2011, 10:05 AM
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Obviously we must have a monetary system, who wants to carry around precious metals, grain and livestock. We are in a global economy and market forces determine the value of the dollar compared to the Euro, etc. Inflation is an inherent factor in our monetary system.

What I would like to see is a balance sheet that supports the valuation of each country's currency.

Is a gold standard even relevant now that we are part of a global economy?
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Old 12-18-2011, 10:24 AM
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Originally Posted by Dark Rumor View Post

What I would like to see is a balance sheet that supports the valuation of each country's currency.
Each country values itself differently. There is no set method that all countries agree upon. Just last month Italy changed the way it values its GNP, picking up a couple $billion is extra wiggle room, and thus affecting the value of Italy. China undervalues her currency, giving her lots of extra headroom, should she wish to revalue herself. Couple that with China's recent massive gold purchases and looks like she is positioning herself to step in as the new world currency should everything collapse, as is expected to happen next year (2012).
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Old 12-18-2011, 11:50 AM
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What I have learned with all this BS going on as of late.

There are ordinary citizens like you and me. Then there are special citizens who don't have to abide by the rules you and I have to follow. Some people get away with things I would get locked up for. People like John Corzine.

We are chinas best customers they are growing because we are contracting. We need American industry back. We need to produce material goods and reduce free trade so it isn't so free. We are too dependent on china goods. There was a time where we made everything for ourselves.

We need corporations out of government. There are too many corporations trying to be policy makers, politicians trying to be CEOs and government trying to be a corporation.

Everyone need to contribute fairly. Say if I owned 20 acres in Jersey but I raised chicken so I could save thousands in taxes. If my last name was Jeter and earned over 15 mill in NYS but never paid any taxes to NYS. Or could own a company like BP who sucked money out of American soil polluted the evionment made record earnings but never paid my fair share in taxes. I wish I could own majority in a corporation that sends jobs overseas but still gets tax breaks because they pretend to create jobs. All this goes on but they keep burdening the middle class workers more and more.

I wish I could be like all those corrupt individuals living it up but I don't think i could sleep at night.
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Old 12-18-2011, 11:51 AM
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Originally Posted by Eyeball View Post
Each country values itself differently. There is no set method that all countries agree upon. Just last month Italy changed the way it values its GNP, picking up a couple $billion is extra wiggle room, and thus affecting the value of Italy.
I can't disagree with you more.

GNP is simply an indicator.
How that indicator is gauged does not alter the value of anything.
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Old 12-18-2011, 01:36 PM
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Originally Posted by Soundbounder View Post
I can't disagree with you more.

GNP is simply an indicator.
How that indicator is gauged does not alter the value of anything.
I think each country value's their GNP and prints money accordingly. If a country prints to much money then the value of their currency decreases. Perhaps Italy has made such an adjustment and decreased their money supply.

I agree that the market place not the individual country sets the exchange rate.
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Old 12-18-2011, 01:41 PM
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Originally Posted by kazooty View Post
What I have learned with all this BS going on as of late.

There are ordinary citizens like you and me. Then there are special citizens who don't have to abide by the rules you and I have to follow. Some people get away with things I would get locked up for. People like John Corzine.

We are chinas best customers they are growing because we are contracting. We need American industry back. We need to produce material goods and reduce free trade so it isn't so free. We are too dependent on china goods. There was a time where we made everything for ourselves.

We need corporations out of government. There are too many corporations trying to be policy makers, politicians trying to be CEOs and government trying to be a corporation.

Everyone need to contribute fairly. Say if I owned 20 acres in Jersey but I raised chicken so I could save thousands in taxes. If my last name was Jeter and earned over 15 mill in NYS but never paid any taxes to NYS. Or could own a company like BP who sucked money out of American soil polluted the evionment made record earnings but never paid my fair share in taxes. I wish I could own majority in a corporation that sends jobs overseas but still gets tax breaks because they pretend to create jobs. All this goes on but they keep burdening the middle class workers more and more.

I wish I could be like all those corrupt individuals living it up but I don't think i could sleep at night.
So what can the voting majority - the middle class - do about these issues you have raised?
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Old 12-18-2011, 01:49 PM
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I won't argue any one point but it would be nice if they didn't misspell words in their articles.

Govermental and eggregious are the two I read. They are spelled incorrectly, right?
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Old 12-18-2011, 08:06 PM
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Fed May Inject Over $1 Trillion To Bail Out Europe


That would be OUR money !!!

From the folks at ZeroHedge:http://www.zerohedge.com/news/fed-ma...le+Feedfetcher
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Old 12-19-2011, 04:25 AM
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Originally Posted by Eyeball View Post
Fed May Inject Over $1 Trillion To Bail Out Europe


That would be OUR money !!!

From the folks at ZeroHedge:http://www.zerohedge.com/news/fed-ma...le+Feedfetcher


This was well reported a week ago:


Bernanke Tells Senators Fed Won’t Bail Out Europe
http://blogs.wsj.com/economics/2011/...il-out-europe/

GOP senators say Bernanke told them Fed doesn’t intend to bail out Europe in debt crisis
http://www.washingtonpost.com/busine...EuO_story.html


Bernanke Tells Senators Fed Plans No Aid to European Banks
http://news.businessweek.com/article...FKL43HNF44BMG6


"Lindsey Graham, a South Carolina Republican, said Bernanke told lawmakers that “he doesn't have the intention or the authority” to bail out countries or banks. Both senators spoke to reporters after leaving the one-hour session at the Capitol in Washington."
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Old 12-19-2011, 05:15 AM
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Originally Posted by yarcraft91 View Post
Interesting.

The article seems to encourage owning gold because inflation does not reduce its value. The reason gold has value is because people want it and the supply is limited.

The same could be said for land.

The trick with either is buying quality and not overpaying.

This is a very needed thread here, but I do not think that It will be just gold but anything desired or needed is what you want instead of cash federal reserve notes if it does collapse. People are waking up which makes me think that it could collapse. Before the past couple years guys like John Corizine our bad governor of joisey could collapse financial institutions and walk away with out being questioned. Now he is at least being questioned. Where did the money go that is missing? It was never real money anyway? federal reserve notes?> Ron Paul has been saying this for years and now he is finally getting traction on it. That means people are waking up. And if he even remotely becomes the choice to be president he will never see tomorrow??? Oh I do totally believe that.
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Old 12-19-2011, 07:06 AM
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Actually this make since to me, but then again I may be simpleminded

Debt-Free United States Notes

Can anybody offer a better potential solution...
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Old 12-19-2011, 08:52 AM
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Originally Posted by Soundbounder View Post


This was well reported a week ago:


Bernanke Tells Senators Fed Won’t Bail Out Europe
http://blogs.wsj.com/economics/2011/...il-out-europe/

GOP senators say Bernanke told them Fed doesn’t intend to bail out Europe in debt crisis
http://www.washingtonpost.com/busine...EuO_story.html


Bernanke Tells Senators Fed Plans No Aid to European Banks
http://news.businessweek.com/article...FKL43HNF44BMG6


"Lindsey Graham, a South Carolina Republican, said Bernanke told lawmakers that “he doesn't have the intention or the authority” to bail out countries or banks. Both senators spoke to reporters after leaving the one-hour session at the Capitol in Washington."


This was reported today, in Bloomberg BusinessWeek:

Fed Foreign Bank Lifelines May Reach $1 Trillion, Congress Told

The Federal Reserve may lend $1 trillion to central banks as Europe’s crisis roils markets and erodes confidence in the region’s lenders, Anthony Sanders, a George Mason University finance professor, told Congress. ...

The swaps program may “get to the $1 trillion level, or perhaps even higher,” said Sanders, a former director of mortgage-bond research at Deutsche Bank AG. He spoke today before the U.S. House of Representatives Committee on Oversight and Government Reform’s subcommittee on financial-services bailouts ...


http://www.businessweek.com/news/201...ess-told9.html
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Old 12-19-2011, 01:33 PM
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Originally Posted by Dark Rumor View Post
So what can the voting majority - the middle class - do about these issues you have raised?

It's every man for himself. I have given up trying to look out for my brother and those less fortunate. Best you can do is protect what you have.
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