FED up? Hundred years of manipulating the US dollar

Adrian Salbuchi is a political analyst, author, speaker and radio/TV commentator in Argentina.

Published time: December 23, 2013 07:41   
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The facade of the U.S. Federal Reserve building in Washington (Reuters/Jonathan Ernst)
The facade of the U.S. Federal Reserve building in Washington (Reuters/Jonathan Ernst)
Monday 23 December marks the 100th Anniversary of the creation of the Federal Reserve System - the Central Bank of the United States of America.


The mainstream media are keeping remarkably quiet about this key milestone.


No doubt, they know only too well that growing millions of workers inside and outside the US are realizing that a century of central banking monopoly in the hands of a private clique of usurer banksters is enough. More than enough!


‘Twas the night before Christmas…


…when all through the house, not a creature was stirring, not even a mouse. These words written by 19th Century American poet, Clement Clarke Moore, aptly describe the scene a hundred years ago when the Federal Reserve Act was discretely rubberstamped in the US Congress: true, hardly a mouse was stirring either in the House or in the Senate. But the big rats were definitely there to vote in their act!


1913: Woodrow Wilson was President of the United States; World War One was but eight months away; and three years earlier a very hush-hush meeting had taken place at mega-banker, John Pierpont Morgan’s, private estate on Jekyll Island off the coast of Georgia.


Bloomberg News described this in a February-15, 2012 article as “a secret meeting that launched the Federal Reserve Bank. In November 1910, a group of government and business leaders fashioned a powerful new financial system that has survived a century, two world wars, a Great Depression and many recessions.”


That’s the Bloomberg Versión. The ugly truth is probably exactly the opposite: in November 1910 a group of government, banking and business leaders fashioned a powerful new financial system that triggered, promoted and imposed a century of conflict and genocide, including two world wars, a Great Depression, many recessions and systematic mega-banker bailouts using taxpayer’s money.


In 1995, American investigator and author, G. Edward Griffin, published what is clearly the most authoritative book on the FED – as it is colloquially called in banking circles and by the mainstream mediaThe Creature from Jekyll Island”.
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Mark Wilson/Getty Images/AFP
Mark Wilson/Getty Images/AFP


Griffin’s book describes how a top secret conspiracysorry, can’t think of a better phrase – of very high-powered bankers, government officials and foreign agents met to plan the take-over of the American economy, finance and national currency, the US Dollar, to then wage global wars of conquest.


Bloomberg went on to describe how Rhode Island Senator, Nelson Aldrich, whose daughter married John D. Rockefeller Jr, invited men he knew and trusted, or at least men of influence who he felt could work together: Abram Piatt Andrew, assistant secretary of the Treasury; Henry P. Davison, a business partner of JP Morgan's; Charles D. Norton, president of the First National Bank of New York; Benjamin Strong, another Morgan friend and the head of the Bankers Trust; Frank A. Vanderlip, president of the National City Bank; and Paul M. Warburg, a partner in Kuhn, Loeb & Co. and a German citizen.”


Paul Warburg was the actual mastermind behind the FED. Interestingly, his main partner at Kühn, Loeb & Co, Jakob Shiff, had just financed the Japanese war against the Russian Tsar; he would later channel 20,000,000 US dollars via a Russian exile living in Brooklyn by the name of Lev Davidovich Bronstein (better known as Leon Trotsky) to ensure the 1917 victory of the Bolshevik Revolution.



Neither 'Federal', nor 'Reserve', nor a 'Bank'



Actually, it’s a system. Officially, the Federal Reserve System wields full control over the US Dollar, not to serve the American people but on the contrary the interests of private bankers, who hold its very special type of stocks and shares.


In practice, the FED is over 95 percent privately-owned, is not integrated into the US Government, nor accountable to any branch of government. There is nothing Federal about it as it lies fully outside the government system of checks-and-balances.


Nor does it Reserve anything. Rather it arbitrarily prints all the money the mega-bankers and power elites need to keep the globalized world rolling in the direction that they wish and need.


This includes such things as multi-trillion dollar quantitative easings to keep Goldman Sachs, Bank of America, CityCorp, Wachovia and JPMorgan Chase happy and healthy; financing clandestine and terror operations to overthrow the governments of Iran, Nicaragua, Argentina, Cuba, Chile, Syria, Libya, Vietnam and many others; waging decades-long wars against Afghanistan, Pakistan, Iraq, Africa and Latin America; unflinchingly supporting little Israel’s genocide in Palestine and its democratic 400-bomb strong nuclear program; and keeping Wall Street on permanent life-support.


Finally, it is definitely no Bank in the sense of a financial institution promoting the credit needs of the real economy for the benefit of the vast majority of the working population’s needs.
Rather, the FED supports the financial needs of the global war system, covert operations, usury, drug dealers, and the global banksters.
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Reuters/Kevin Lamarque
Reuters/Kevin Lamarque

The FED answers to no one. It clearly does not serve We the People of the US or anywhere else. Its purpose is to serve the global power elites, regularly meeting to plan world government through entities like the Council of Foreign Relations, Trilateral Commission, Bilderberg, World Economic Forum and others forming part of todays’ intricate planetary web of global money power.


Straight from the horse’s mouth


In a Public Broadcast System (PBS) interview on News Hour aired on September 18, 2007, US journalist Jim Lehrer had this Q&A session with former decades-long Fed Chairman (and JP Morgan bank officer) Alan Greenspan:


Jim Lehrer: What is the proper relationship between a chairman of the Fed and a president of the United States?”


Alan Greenspan: Well, first of all, the Federal Reserve is an independent agency, and that means, basically, that there is no other agency of government which can overrule actions that we take. So long as that is in place and there is no evidence that the administration or the Congress or anybody else is requesting that we do things other than what we think is the appropriate thing, then what the relationships are don’t frankly matter.”

Huh? If you’re a US citizen, you should re-read the above once or twice.

The FED System lies at the root of US superpower status. Allow me to explain how the FED scam really works from the point of view of someone living in Argentina - a very down-trodden country repeatedly made to bite the dust by the global power elites through their local agents imposed upon us through money-power democracy”.


This means that every time Argentina needs to buy 100 dollars-worth of, say, oil, medicines or technological components, the Argentine people must work to earn those 100 dollars through exports and genuine work.


By comparison, every time the US Government needs to buy 100 dollars-worth of oil, medicines or whatever, all they need to do is tell the Fed to print 100 dollars and that’s that. Let’s just say that this makes it much easier to be a superpower.


OK, the mechanism’s not that simple, but this certainly explains schematically how the whole US-Dollar power system really works. It also explains why the elites won’t tolerate anybody challenging the dollar.



Oh, when the Fed... comes marchin’ in…


Look at the world’s oil market. It is a monopoly run by three global trading centers located in New York, London and Dubai. The idea is to ensure that petro-dollars flow around the world 24/7, and only incidental small amounts should flow back into the US financial system.


This explains why when in late 2002 Saddam Hussein decided he would do his UN-sanctions authorized One Billion Dollars Iraqi Oil for Food trade with the West in euros instead of dollars, he was quickly visited by the Fed’s military branch in March 2003.


Or take Muammar Kaddafi who in 2011 was about to launch a program to trade Libyan and North African oil using a new gold-backed currency – the gold dinar. He too got a little visit from Peace Prize Barack and Babylon Hillary. Do you begin to see the pattern?


But don’t think that the FED’s global financial enslavement system is simply aimed outside the US; it kicked off a century ago by first silently enslaving the very people of the United States it is supposed to serve.


Here’s how that works: every time the US Government decides to put money into circulationthose 1, 5, 10, 20, 50, 100 dollar bills we’re all so familiar withinstead of asking the government mint to print them at a penny’s cost in paper and ink, the government instead asks the private banksters at the Fed to print those bills for the Treasury, in exchange delivering to the Fed interest-bearing US Treasury Bills and Bonds, which translates into trillions of dollars’ in profits funneled to the private banking elite through the Fed.


It was all so well planned a hundred years ago, that just before the Federal Reserve Act was passed on December 23, 1913, they also maneuvered to close this parasitic circle, for if the US Government was to begin making gigantic interest payments to the Fed just for printing its own money, they first needed to have a revenue scheme in place to milk the American taxpayer: the Income Tax Act!
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Mark Wilson/Getty Images/AFP
Mark Wilson/Getty Images/AFP


Actually, it was the 16th Amendment to the US Constitution passed by Congress in July 1909, and enacted as law in February 1913. Thus international banksters have been ripping off Americans and getting America to fight their wars as proxies for a full century, whilst most of the population haven’t got a clue of what’s going on.


Clearly, the FED lies so far above the US White House, Congress and Supreme Court, that over the past five decades no one has been able to have a proper audit done on its books and numbers. Oh, you Homer Simpsons!


Not that you haven’t been warned. In 1923, Minnesota representative, Charles Lindbergh, father of the famous aviator, sent an early warning: “The financial system has been turned over to the Federal Reserve Board which administers the finance system by authority of a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money.”


In the 60’s, republican senator and presidential candidate, Barry Goldwater, said most Americans have no real understanding of the operation of international moneylenders; the accounts of the Federal Reserve system have never been audited; it operates outside the control of Congress and manipulates the credit of the United States.” Today, former representative, Ron Paul, has been sending the same message.


Even president John Kennedy understood this when he issued Executive Order No. 11110 on June 4, 1963, ordering the US Treasury to print zero-interest public money to the tune of 4.3 billion dollars, fully bypassing the Fed. But he too ran into some trouble in Dallas barely five months later on 22 November.


Epilogue: Fed Up?


One would have thought that something as important as whether to continue to allow a private FED to operate in its present format, or revamping it, or even doing away with it after a whole century, would be something that should be squarely on the American and global public agendabig time!


And yet all we have is silence from the US Government, Congress and politicians; silence from world leaders; total silence from the mainstream media, and from the academic world.


And so you little parasitic mega-bankers running planet Earth: come Monday 23 December you can uncork all the champagne you like and celebrate your One Hundredth Masters of the Universe Slave Drivers Anniversary, partying on straight into Christmas Day.


Then, come Thursday 26th, just carry on crucifying the entire world. For you it will be business as usual.


The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.


Fed wins battle of the exit – for now

Mohamed El-Erian

December 26, 2013



With equity markets reacting enthusiastically to the Fed’s historic policy change announced last week, many have rushed to declare victory. Whether in asserting investor comfort with the policy regime shift or in declaring the definitive end of dependence on quantitative easing (“QE”), they believe that the markets’ short-term reaction can indeed be extrapolated into the longer-term.

Compare this with what we have been hearing from central banks. Reactions there have been quite muted. Humility may well be a factor, especially given that three prior attempts to “exitearlier versions of QE regimes had to be abandoned. But there may well be more at play. Central bankers have good reason to be more cautious about declaring victory at this stage. And the rest of us would be well advised to ask why.

As widely reported last week, Fed policy makers decided to reduce – or taper – the purchases of securities. The first step, to be implemented in January, lowers the monthly market intervention from $85bn to $75bn by cutting equally both mortgage and Treasury purchases. Moreover, Ben Bernanke, outgoing Fed Chairman, signalled that – assuming there are no major economic surprises – we should expect the Fed to consistently reduce its purchases throughout 2014. So much so that, if all develops according to plan, the Fed could well terminate QE3 by the end of the coming year.

Unlike between May and June when the mere mention of the word taperseverely disrupted markets, the Fed’s announcement this time did not stop just at taking away a measure that is widely believed to have significantly bolstered asset prices and, to a lesser extent, helped the real economy too. Our central bankers adopted compensating measures by providing greater assurances that policy interest rates would remain floored for quite a while. They have also hinted at additional measures should interest rates behave erratically – such as cutting the interest that the Fed pays banks on excess reserves.

Equities and other risk assets have soared in reaction to the news. After all, investors now have a clear road map for Fed policies, thus reducing a component of the uncertainty premium. Moreover, it is highly reassuring that the Fed remains committed to supporting the economy through the “asset channel.” And all this is taking place in the context of an improving economy as evidenced by the strong employment report and the upward revision in GDP growth.

While most Fed officials will welcome the markets’ favourable reaction – and especially so after the May-June shock – I suspect that they are much more cautious. Indeed, there are four reasons why such caution is understandable.

First, the impact of Fed policy remains overly dependent on using artificially-high asset prices to alter household and company economic behaviour. Other transmission mechanisms, including the credit channel and the deployment of cash in real economic investments, remain muted. Accordingly, concerns about financial soundness will persist until the Fed witnesses improving economic fundamentals that validate artificially-elevated asset prices.

Second, the Fed is entering a more uncertain policy phase due to its ongoing instrument pivotnamely, less reliance on a direct measure (monthly purchases) and greater reliance on an indirect one (impacting behaviour through forward policy signals). Issues regarding the degree of effectiveness and control could well come to the fore. Just witness the recent sharp upward moves in the 5-year US Treasury yields, along with other intermediate maturities.

Third, those at the Fed who follow closely market positioning will probably recognise that equity markets are currently in the grips of very favourable technicals; and, judging from history, such technicals can lead to price overshoots whose reversal can be quite disruptive.

Finally, the Fed is not the only central bank that has been active in maintaining economic and financial tranquility and, to this end, continuously bolstering asset prices; and it is not the only institution that has been forced to rely on imperfect instruments to fulfil this task.

The European Central Bank and the Bank of Japan are in the same boat. And they, too, face tricky policy issues ahead, with success also ultimately dependent on the overall ability of their economies to overcome the trio of inadequate aggregate demand, insufficient supply responsiveness and residual debt overhangs.

After a couple of false starts, Fed officials have impressively won the first big battle in implementing a gradual orderly exit from QE3, a highly-experimental measure whose longer-term consequences are not fully known as yet. They are yet to win the war.