It’s Pretty Simple and Pretty Stupid
The real truth of the matter is, as you and I know that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson…”
FDR, in a private letter to Col. Edward Mandell House, on 21 November 1933.
In 1913, Edward House was hoping the US could be taken over by a banking dictatorship. He was an advisor to Woodrow Wilson when the Federal Reserve Act was signed into law, and he helped pick the first Federal Reserve governors! I suspect that a banking dictatorship is not something Americans would approve of today, but the FED still thinks we are too stupid (or too scared) to get our economy fixed in a Constitutional way.
These “financial elements, in the larger centers”, really like to have recessions and depressions. It’s their “year of jubilee”, so to speak, except, it’s a case where they are willing to “forgive your debt” by accepting your house or business, as payment, and let you keep the worthless sheets of paper you were using to service your loan. Now they own something of value for something they managed to convince you actually had some value; Federal Reserve Notes.
Depressions are a necessary feature from issuing Federal Reserve notes as money. Something has to happen every so often to “Reset” the entire system, and Depressions are perfect solutions. All currency in circulation, except for coins, is money that the economy has simply borrowed. There are no paychecks anywhere in the system. All the FED has to offer the economic system, as currency to operate, are just loans.
Think of it this way. You personally no longer get a paycheck for the work you do, but what you get, is an increase in your line of credit every week. Just for fun, let’s say the increase amounts to $2,000 a week. $104,000 a year seems pretty reasonable — – Let’s go for it. Ahh, but there’s always a catch. It’s called interest. They give you the $2000 a week but not the Interest for next year. To keep the math simple, easy to visualize, and to clearly show the compound effect at work, assume the interest is 10% per year. After the first year, you will have to pay $10,400 back, reducing your lifestyle by about the same amount. After ten years you will have a line of credit that is now set at $1,040,000 ($104,000 X10).
But the increase in your line of credit for that year was still the same $104,000! Yipes but that is also the amount you owe in interest! Any accounting standard you can imagine, says you are insolvent. That is, unless you are the world bankers. Then you can create every imaginable source of paper ever devised to make it look like everything is still working OK, unless, of course you are no longer a politically correct organization. You’re a$$ will be grass and they will be the lawnmower. You will get a haircut, or simply disappear as an organization. If you are “real lucky” they’ll just “re-organize” you.
And if you make an effort to politically change the system, it would be prudent to get someone to watch your backside. JFK missed that part when he tried to change the system. The financial elements in the larger centers collect a lot of bonuses every year, and it would hurt a lot if the system ever changed to benefit Main Street. Besides, depressions are a great way to scare citizens, and get them to “pony up” and shake in their boots. You work a lifetime, build a business, and buy a house then the “financial elements in the larger centers” get together begin the shakedown. People lose their jobs, the market collapses, and the financial elements suck it up. Game over.
You hold the bag. And cry a lot. Politicians “bail out” the financial elements and leave Main Street to figure it out on their own. Funding unemployment and handing out food stamps is a small price for the politicians to pay for transferring wealth. So, are we that stupid or are we that fearful, or are we both.
And now we have jobless youngsters with college degrees who want to Occupy Wall Street and solve the problem. Let’s hope they figure it out before they get sent down the wrong trail again. It’s really the time for them to “Occupy the FED” where the problem really resides!