Posts Tagged ‘Plutocracy’
The Federal Reserve is a wealth transfer machine, skimming wealth from the productive many and transferring it to the parasitic few.
Today I launch a series entitled “The Rot Runs Deep” that examines the moral and financial rot at the core of American finance, politics and culture. We have reached a unique junction of American history: the confluence of Big Lie propaganda, neofeudalism and the worship of false financial gods.
The Big Lie propaganda machine of corporate media and the Central State has perfected Orwell’s nightmare vision of centralized media and a fascist centralized State which turn lies into self-serving “truth.”
Since the Federal Reserve is once again expected to “save” a crumbling, exploitative Status Quo, let’s use the Fed as an example. The propaganda machine would have us believe that the Federal Reserve, the privately owned central bank of the U.S., has “saved” the Status Quo from financial ruin on numerous occasions by “smoothing out” the business cycle (credit expands and contracts) and by “stimulating aggregate demand” by lowering interest rates and pumping money into the economy (quantitative easing).
We are constantly prompted to worship the Federal Reserve’s supposedly god-like powers to rescue a corrupt and venal Status Quo from the black hole of recession and collapse, and this Big Lie masks its real nature: The Fed is nothing but a parastic wealth transfer machine, skimming wealth from the many and transferring it to the few.
In effect, the Fed is the “enforcer” of neofeudalism in America: the feudal Lords of Finance control the for-sale political system and skim tribute from the 99.5% toiling in the fields below their castles. The Fed enforces this parasitic transfer of wealth by manipulating interest rates to enrich the banks and provides “free money” to the Financial Lords which is then used to buy assets and lend at interest.
The mechanisms of the Fed’s parasitic transfer of wealth are well-known.Here’s one: the Fed “loans” money to the Feudal Lords at 0% interest. the Lords then loan this free money out to peasants, students and other debt-serfs at high rates of interest. The interest “earned,” courtesy of the parasitic Fed, is theirs to keep.
If they can’t find enough debt-serfs who can pay more interest, they can always deposit the free money back at the Fed and earn interest from the Fed itself.
Here’s another: the Fed “loans” free money (0% interest) to the Financial Lords, who then buy low-risk long-term U.S. Treasury bonds paying 3%. When the Lords spot a better skimming opportunity, they sell the bonds to the Fed, who buys the bonds from the Lords as part of its “Operation Twist.”
Peasants who have arduously saved up capital (cash) earn next to nothing as a result of Fed policy, but the Fed insures Feudal Lords earn a guaranteed return on money they obtained for free. The suppression of interest income to near-zero (a negative return once inflation is factored in) is a massive transfer of wealth from savers to Fed-backed speculator Lords and banks.
As a direct and intentional result of the Fed’s quantitative easing, huge sums of “free money” slosh into the “risk-on” stock market, where the money provides liquidity for the Lords’ high-frequency trading (HFT) skimming operations.
The losers are the peasants who have been locked into 401K plans that divert their earnings into the stock market, where the Lords’ HFT can skim billions from the 401K plans.
The Fed guarantees the Lords free money, and also supports the Financial Lords’ speculative bets in the stock market; whenever the market threatens to swoon, the Fed intervenes and manipulates the markets up to levels where the HFT machines will trigger momentum buying.
What do we call a power center that enables and enforces neofeudal exploitation and predation? We call it evil. The Federal Reserve is a force of evil that should be abolished at once. Its purpose–enabling and enforcing a neofeudal transfer of wealth from the productive many to the unproductive, parasitic few–is evil. Those within it are serving evil. Those who defend it are serving evil. Those who worship its power are serving evil. Those who mask its true nature are also serving evil.
In a society and culture that has lost its moral compass, a culture of greed, self-serving lies and corrupt vested interests, the word “evil” has lost its power. It has been reduced to a cartoonish label, a cynic’s smarmy joke.
The Soviet Empire was evil, and President Reagan was mocked by “sophisticates” for labeling our global competitor evil. In the relativist terms of propaganda, the only difference between the U.S. and the U.S.S.R. were two letters; this is the mindset created by a reliance on propaganda. There is no good or evil, there is only the paycheck “earned” by serving one master or another.
Anyone daring to label the widely worshipped Federal Reserve as a false god, a purveyor and enforcer of predation and exploitation, will also be mocked by presumptive “sophisticates” of the many Cargo Cults that depend on the neofeudal skimming, exploitation and lies for their own share of the spoils. Their self aggrandizement and share of the swag demands obedience to the Fed’s godlike power to skim from the many and distribute to the few.
Since they are among the few, they will do anything for their Master, the Federal Reserve, for it has the power they worship: the power to transfer vast wealth from the productive many to the parasitic few.
Should we be surprised that the parasites in the media, academia, politics and finance support the evil that enables their own predation and exploitation? Of course not, for self-service and self-justification are the ultimate American gods.
Charles Hugh Smith – Of Two Minds
“Powerful and resourceful gangsters have banded together to make war upon the whole human race.” – FDR, December 9, 1941.
President Franklin D. Roosevelt said those words two days after the attack on Pearl Harbor, but they can be applied to the threat that America and mankind faces today: financial terrorism by global, private central banks such as the Bank for International Settlements and the Federal Reserve Bank. These banks are robbing and destroying America in broad daylight while the resources of the FBI, CIA, and U.S. Military are being wasted and misdirected on purpose to hunt down imaginary terrorists and Islamic villains like Osama Bin Laden who was not responsible for the 9/11 attacks.
As Max Keiser said two years ago on French television, the financial terrorists on Wall Street are worse than Bin Laden. “These guys are financial terrorists, they should be decapitated,” said Keiser, referring to the banking CEOs on Wall Street. “Throughout history,” he added, “when bankers have seized control of the system and impoverished the community there’s been some penalty to pay.”
The real terrorists who are threatening the freedoms and security of the American people are not wearing turbans and walking down villages in Afghanistan and Pakistan. The real terrorists are wearing suits and walking down Wall Street, and K Street: Hank Paulson, Lloyd Blankfein, and the CEOs of other treasonous Wall Street banks who robbed the American people and bankrupted America along with the political leaders of the Republican and Democratic parties. These men created a massive financial crisis that might ultimately bring down America and Western civilization as we know it.
Indeed, the real conspiracy is that the government is trying to hide the fact that massive conspiracy to commit fraud by Wall Street’s biggest players is a prime cause of the financial crisis.
The 2008 financial crisis was the Pearl Harbor in the new world order’s economic war against the American people. And just like Pearl Harbor it was preventable and did not need to happen. If the government had regulated the banks, abolished the Federal Reserve, and restored a sound monetary system then millions of people would not be suffering and wondering why their lives have been torn apart for no fault of their own.
Independent journalist David DeGraw, publisher of the website AmpedStatus, wrote in March 2010 that the global economic elite have robbed America and seized its government in an article called “Is It Time for Law Abiding American Citizens to Stop Paying Their Taxes and Start a New Government?”:
The Economic Elite have seized our economy, tax system and government. These people are the most depraved terrorists on the planet and they have viciously attacked us and launched an all-out economic war on the American public. We have to get serious about defending ourselves and fighting back.
In another article called “The Financial Terrorists Who Destroyed Our Economy Will Pay Zero in Taxes — and Get $33 Billion in Refunds” DeGraw said that the financial crisis was really a massive transfer of wealth from the bottom 99% to a bunch of parasitic and sociopathic financial thieves who produce no products, create no jobs, and provide no labor. They gain wealth and power by creating money out of thin air and lend it to national governments at interest. DeGraw:
The first thing people need to understand is that the economic crash wasn’t a crash for the people who caused it. In fact, these financial terrorists are now doing better than ever.
In the last three decades Western oligarchical banks have financialized the global economy, deindustrialized America, and destroyed the middle classes of the Western world. The long-term economic policies of Western nations have created a two-tier class society, mass poverty, mass unemployment, and a global debt crisis.
Rather than attack the root of the crisis, which are the elitist policies of the Federal Reserve Bank, the hijackers of the U.S. government have quietly instituted a regime of repression and terror in America to keep the American people in check and prevent a revolution from taking place. The political elite in Washington think that a giant police state will fix all their fiscal and political problems and keep the people at bay. In the process of setting up their technocratic police state they have annihilated the U.S. Constitution and Bill of Rights, turned freedom into a dirty word, and destroyed the rule of law.
In the event of a new false flag attack the police state will officially be brought out into the open to suppress popular dissent and enforce the official standards of patriotism and citizenship, as written by the globalist state terrorists themselves who have stolen the federal government. People will be told to follow government orders or face the firing squad. Brainwashed cops, corporate mercenaries and TSA agents will be given total impunity to maintain a false sense of order and security.
The individuals and groups who are thinking about resisting their enslavement are already being persecuted as “right wing extremists” and “domestic terrorists” by the government. This is a dangerous step and a precursor to absolute state terror.
History shows that government persecution of certain groups does not stop at name calling. Imprisonment and state murder always follows state persecution. If you believe you have God-given rights and do not want to surrender those rights to the government then you will eventually be imprisoned and/or killed.
As Albert Camus said, aristocratic tyrants always blacken the name of the people and their heroes. We must resist the classification of rebels as “terrorists” and “extremists.” The state terrorists, tyrants, traitors, thieves and criminals who have captured power in America are in it for the long haul, and mass murder is on the agenda. But they can’t carry out their plans if people refuse to go along with their propaganda.
Sooner or later, a war between the forces of freedom and the forces of tyranny must be fought. Let’s hope 99% of the war is won before shots are fired because bloodshed can be avoided if people wise up and bring their true enemies to justice instead of worrying about manufactured terrorists like Bin Laden.
The real enemies of America and the West have hijacked the American government, and enslaved the people in the name of protecting them from make-believe “terrorists.” They are enemies of the public order, the rule of law, freedom, and peace.
If the truth about 9/11 and the real purpose for the transnational technocratic police state does not take hold in the minds of the people then the government gangsters will be free to pursue their mad dreams and control the destiny of the human species.
Saman Mohammadi is a blogger and a full-time university student, currently living in Toronto, Canada. His blog is The Excavator – http://disquietreservations.blogspot.com .
We now have an oligarchy. People cannot get a democratic outcome out of an alleged democratic government. We’re seeing this all over the West. Some of these countries aren’t even run by their own governments. They’re run by Wall Street. The whole thing is a fraud. There’s probably more democracy in China…. Revolution is the only answer. Would default be ‘catastrophic’? Catastrophic for who?! The bankers?!
Most Americans believe that we still live in a capitalist system and that free markets primarily determine the growth and development of our economy. But is that really the case? No, sadly it is not. The truth is that the U.S. Federal Reserve does a tremendous amount of central economic planning. So what makes the central economic planning that the Federal Reserve does different from the central economic planning that communist China does? Yes, in China it is the government that does the central planning and in the United States it is a private central bank that does the central planning, but other than that are there any huge differences? And if our economy is centrally planned, then how can we continue to claim that we still have a free market capitalist system?
Certainly China goes into greater detail in their economic planning, but that does not mean that the economic planning that the Federal Reserve and the U.S. government do is not similar.
After all, free markets do not set interest rates in this country – the Federal Reserve does.
The Federal Reserve also determines what the money supply will be.
The Federal Reserve is the one that decides if inflation is too high or too low.
The Federal Reserve is the one that decides if unemployment is too high or too low.
In addition, the Federal Reserve has a tremendous amount of regulatory power over U.S. banks and the entire financial system. Most Americans simply do not realize how much power the Federal Reserve has over our banks. Just last year Federal Reserve officials walked into one bank in Oklahoma and demanded that they take down all the Bible verses and the Christmas buttons that the bank had been displaying.
Like the communist Chinese, the Federal Reserve is not elected and it is essentially accountable to nobody.
Like the communist Chinese, the Federal Reserve also picks winners and losers. You see, not all financial institutions are treated equally by the Fed. For example, some have access to the Fed’s discount window and others do not.
How is that fair?
Certainly the Federal Reserve does not do all of the central economic planning in this country. The U.S. government loves to get involved in economic planning as well. For example, the U.S. government has decided that there are certain types of light bulbs that we are allowed to buy and certain types of light bulbs that we are no longer going to be allowed to buy. It doesn’t matter that the new light bulbs are far more dangerous to children or that most of us would still like to have the choice to buy the old light bulbs.
But getting back to the Federal Reserve, how “democratic” or how “capitalist” is it to have 12 unelected people sitting around a table deciding the economic direction of this country?
The truth is that we live in a system that simply does not trust free markets and that believes that our economy needs to be “managed”.
I have to admit that my thinking on these issues was stimulated when I recently read an excellent article by Vitaliy Katsenelson in which he asked the following question….
It is a fundamental tenant of American capitalism that central planning of economies doesn’t work in the long term, whether in Soviet Union historically or in China today. But I often wonder: How is the Fed’s Board of Governors – the proverbial 12 guys in a room – any different than the 24 guys in a room who make up the Chinese politburo?
Is Katsenelson not right about this?
How in the world is the Fed’s Board of Governors all that much different from the Chinese Politburo?
In both cases, a group of unelected elitists makes the major economic decisions for all the rest of us.
That certainly does not sound like “capitalism” to me.
Would the free markets really produce worse results for our economy than the Federal Reserve does?
Would America ever have gone through the Great Depression if the Federal Reserve had not been created in 1913?
Would we have experienced the financial crash of 2008 if the policies of Greenspan and Bernanke had not created tremendous bubbles in the financial system?
Would the U.S. dollar have lost over 95 percent of its value since 1913 if the Federal Reserve was not around to constantly inflate our currency?
Would the U.S. government have the largest debt in the history of the world if we were not using the debt-based monetary system imposed upon us by the elite international bankers?
Now that the total debt of the U.S. government is $14,228,193,126,138.72, it is getting really hard to deny that the federal government is drowning in debt.
Dallas Federal Reserve Bank President Richard Fisher unknowingly indicted the very system he serves when he recently made the following statement….
“If we continue down on the path on which the fiscal authorities put us, we will become insolvent, the question is when.”
If the Federal Reserve had never been created, and the U.S. government had been issuing debt-free currency all this time, it is entirely conceivable that we would have absolutely no federal government debt at this point.
But defenders of the Federal Reserve tell us that if not for the brilliant people over at the Fed, America would be an economic basket case by now.
In case anyone has not noticed, Federal Reserve Chairman Ben Bernanke has a very long track record of incompetence. Nearly every major judgment that he has made since taking over that position has been wrong. If one of us could go down the street and appoint the manager of our local Dairy Queen as the Chairman of the Federal Reserve, it is very doubtful that person could do a worse job than Bernanke has done.
Unfortunately, most Americans do not understand this. Most Americans are still convinced that “the greatest economy on earth” will just keep roaring along forever. Most Americans are spending and partying as if everything is going to be just fine.
Sadly, as Richard Daughty recently pointed out, most Americans will not wake up and realize just how bad our economic problems really are until it is too late….
In fact, to use an analogy, the economy is like a group of overpaid people, milking the government for every dollar and benefit they can get, on a chartered airplane that has been certified as “unsafe,” where one minute everybody is having fun, drunk as skunks, laughing and telling dirty jokes, and the next minute the plane is plunging out of the sky, out of fuel, one wing is in flames, the engines are dead, the entire electrical system is kaput, and, worst of all, the beverage cart is completely empty of cold beer and those little bottles of different kinds of tasty liquors. Uh-oh!
Most Americans have become so “dumbed down” that they still won’t even understand what is happening even after the economy has collapsed. Newsweek recently found that 63 percent of Americans do not know how many justices are on the Supreme Court and 29 percent of Americans cannot even name the current Vice-President.
America today is rapidly degenerating in many of the same ways that the Roman Empire once did. Tens of millions of Americans are lazy, slothful and absolutely addicted to entertainment. It is frightening to see just how many Americans did not show any empathy during the recent crisis in Japan or when we started launching missiles on Libya. The following mini-documentary that was recently posted on YouTube does a beautiful job of making this point….
So is there any hope for America?
Let us hope that people wake up, because there are going to be even more economic disasters coming our way. Right now a large percentage of the American people don’t even know enough to realize what the real problems are, much less what the solutions may be.
When most Americans talk about economics, they instantly start blaming “Obama” or “Bush” and a lot of them never even bring up the Federal Reserve.
But it is the Federal Reserve that has the most power over our economy.
If Americans want to blame someone in Washington D.C. for the economic mess that we are in, the number one culprit is the Federal Reserve.
Yes, Obama, Bush and virtually every member of Congress has played a role in our economic nightmare as well. But it is the Federal Reserve that is actually “managing” our economy.
We would have been much better off if we had allowed free markets to “manage” our economy all this time, but very few Americans actually seem to still believe in free markets anymore.