101 years of the most secretive central bank in history – Dollar has fallen over 90 percent since Fed was put into place. Fed running out of ammo with negative interest policy.
Few people realize how secretive the Federal Reserve operates even though it is the central bank to our financial system and wields a sword strong enough to be called Excalibur. The Federal Reserve came about from a secretive meeting on Jekyll Island by some of the world’s top financiers back in 1910 including the powerful J.P. Morgan. What very few know is that in November of 2010 Ben Bernanke made a trip to the island off of Georgia to commemorate the 100-year anniversary of the original meeting. This original meeting was held in the strictest of secrecy lest the public realize how the powerful bankers sought to aggregate power in a few hands. With the too big to fail becoming even bigger and the Fed blocking full out audits like a hockey goalie, it is nice to see few things change even after 100-years of destroying the U.S. dollar.
What does the Federal Reserve have in its balance sheet?
The Fed for most of its history has been rather mundane in the types of instruments it would hold as collateral. This was typically in the form of U.S. Treasuries. However, since 2008 the Fed has become rather exotic in regards to its holdings and has grown its balance sheet to a size well over $2.8 trillion:
The Fed only recently has delved into the mortgage buying game and did so with the gusto of a kid in a candy shop. The Fed through Quantitative Easing has purchased over $1 trillion in mortgage backed securities from the too big to fail banks. The Fed has also inherited luxury hotels, fast food restaurants, and other failed projects that require banks to be bailed out. Of course this has come at the expense of a declining dollar. The pain being felt in the economy is simply a symptom of a central bank built on darkness and keeping the public completely ignorant to its doings. This was the purpose of the Fed from day one. Reading about the founding of the Fed is like reading about a Skull and Bones initiation:
“(The Creature From Jekyll Island) Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written…”
It was never intended for the public to even have a sense of who was behind the scenes pulling the strings to create the Federal Reserve. Just like in the Wizard of Oz, the power of the wizard comes from the smoke and mirrors.
Read the rest at My Budget 360