classical economics
for analysis,  forecasting
and policy design

Obama's Deceit Models Federal Role
OBAMA’S DECEIT MODELS FEDERAL ROLE
Federal Reserve, DOJ, IRS, NSA, DHS, EPA Betray America
By Wayne Jett © November 25, 2013

     Americans are under attack on many fronts, so our predicament cannot be termed merely “a bad economy.” This once thriving, preeminent society is being systematically undercut from within by officials and policies of government. A ruling elite pull the strings of puppet officials, and they do not intend for the U. S. Constitution or our prosperity to survive.

     President Barack Obama’s obvious deceit that the Affordable Care Act would allow every American to keep an existing health care plan is not, sad to say, uncharacteristic behavior. To the contrary, Obama’s lie is emblematic of federal arrogance untethered by the Constitution or public opinion. Major media pretend to be offended by the lie, but they concealed it from public discourse from at least 2010 until after Obama’s 2012 re-election.

                                                                        Fed Policy Since 2003

     Five years ago, major media blamed 2008’s prodigious looting spree on a “bubble” in residential housing prices caused by too-loose monetary policy during 2003-2005 (when Alan Greenspan was chairman). But productive output actually grew strongly in two of those three years, and the Federal Reserve added to the monetary base no more than $45 billion annually during that period. Our archived report of November 3, 2010, stated “the Fed bought a total of $147 billion in Treasuries during 2003-2006 before actually selling a net $40 billion in 2007.”

     The year 2008 brought the worst collapse of major financial institutions in U. S. history, a $700 billion bailout of international banks, and five successive years of federal deficits exceeding $1,000 billion annually. Was growth in monetary base during 2003-2005 to blame? As previously stated here, of course, it was not. But major media insisted it was true. That being so, why have those media outlets not protested the Fed’s actions since mid-2008?

     In mid-2008, the U. S. monetary base consisted of about $845 billion issued in exchange for Treasury notes and bonds. As of November 20, 2013, dollars created and exchanged for Treasury securities have expanded to $2,137 billion, plus $58 billion created and exchanged for federal agency securities and $1,434 billion more for mortgage backed securities. The Fed presently continues creating $85 billion monthly and exchanging them for mortgage backed securities purchased in private transactions. In sum, the Fed has expanded the U. S. monetary base by 430% in little more than five years – unprecedented devaluation of any international reserve currency.

                                                Who Benefits, Who Suffers, from Fed Largesse?

     Outgoing Fed chairman Ben Bernanke  insists he acted to save the nation from “Great Depression II.” But all of the value of nearly $3,000 billion in new money came right out of the purchasing power of dollars already earned or borrowed across America and the world. The new money flowed to the international banks and to Treasury to expand the federal debt burden on taxpayers, and to be spent with big corporations owned by the ruling elite who also own the international banks and the Fed.

     Almost none of the new money created by the Fed in the last five years went to small and medium-sized business for job creation, as community and regional banks were cautioned not to stretch their balance sheets. Remember, in Fed-speak, a greater proportion of the workforce being employed adds “inflationary pressures.” Prices fall with collapsing demand, which is fed by an ever-growing pool of unemployed. This is why the Fed can boast that inflationary pressures remain subdued.

     Has the Fed’s colossal purchases of mortgages helped the housing industry and home prices recover? Markets have interpreted the Fed’s actions as designed for that purpose, but the Fed’s intent almost certainly is much different. By year-end, the Fed will own $1,500 billion in mortgages, and Treasury has likely given an indemnity against any loss on those purchases. If the economy craters for any reason, including the Fed’s own actions, those mortgages may be sold for pennies on the dollar to the international banks, who may then foreclose the underlying properties.  

 
     In a nutshell, major media deceived the public about the Fed's role in the events of 2008, and major media are deceiving the public now about the Fed's role in creating even greater financial and economic instability. Most importantly, major media deceive the public about the Fed's ownership, control and motives.

                                                                               The Elitist Agenda

     The Federal Reserve’s objective is to advance the agenda of its private owners. Those owners also control the international banks, the largest international corporations, the major media, the major tax exempt organizations, the White House, Congress and the Supreme Court. This summarizes why those owners, a few families, are often called “the ruling elite” here. For historical details of their actions to impose the Great Depression and to orchestrate financial events of the early 21st Century, please see my book The Fruits of Graft – Great Depressions Then and Now, available on this website and on Amazon. Unless you do so, you are likely to think some conclusions expressed here are unsupported.
    
     Distrust of Federal Reserve motives and operations expressed here do not result from mere cynicism regarding human nature and institutions. Current events are best understood in context, and we have plenty of ongoing crises where awareness of the agenda being served is crucial to correct interpretation.

     Take health care, for example. Control of health care through a U. S. government bureaucracy has been a burning desire of the ruling elite since the 19th Century. The desire was born in the ruling elite’s search for a pathway to implement theories of eugenics and to exterminate “people of the abyss” who, in their creed, overcrowd and burden the planet.

     Is it any wonder, then, that the elitist Obamacare is near fruition under leadership of a president who falsely claims to be champion of the poor, the young, the old, and racial minorities – all those targeted by the ruling elite? No wonder at all. President Obama’s willingness to be the ruling elite’s operative was obvious before he became the Democratic Party’s presidential nominee in 2008.

                                                                  Geithner Was Proof Positive

     Some may think that conclusion is less than obvious, even now. Major media have helped Obama disguise his political agenda so well some opposing intellectuals still consider him a “man of the left” rather than the elitist operative he is. So what was the evidence of Obama’s political identity in 2008?

     When Timothy Geithner showed up as Senator Obama’s campaign adviser on economics, there could be no mistake that Obama would be the ruling elite’s president. No one gets to be president of the Federal Reserve Bank of New York without being a Rockefeller operative. Geithner’s role as New York Fed president with Treasury secretary Henry Paulson in the financial destruction of 2008 was further proof of the agenda he served. Then Geithner became Treasury secretary, and the ruling elite got every other financial-economic post with their preferred candidate.

                                                                Train of Deceit Winds Onward

     Under the major media’s protective canopy, Obama made it through re-election despite the glaringly obvious lie he told so many times in his campaign: “if you like your health care plan, you can keep it.” No doubt he knew of the lie, although the Affordable Care Act was written by unseen hands (not Obama) and handed down from above for Congress to pass without reading it. The ACA’s intent at all times has been to supplant existing insurance coverages with mandated standards.

     This does not increase the willingness of the public to believe what the president has told them about Egypt, Libya, Benghazi or Syria. The same is true of gun control, job creation, tax rates, immigration reform and “homeland security.”

     The weight of evidence shows the Internal Revenue Service unlawfully targeted political opponents of Obama before and during the presidential campaign of 2012. The National Security Agency is collecting extensive personal information on every person in America, claiming that any communication making use of telephone or internet technology is in the public arena.

     This brings us to the matter of one or more nuclear weapons moved from a Texas military installation without written paperwork during early October, still unreported officially. Also demanding attention is the continuing massive stratospheric spraying of metallic aerosols, which government officials alternatively (a) deny is being done; or (b) assert is the last, best chance to cool the planet and avoid the severe weather effects of global warming and climate change; or (c) neither admit nor deny.

     Regarding this stratospheric spraying, euphemistically called “geoengineering” by cooperating intellectuals, the Environmental Protection Agency falsely blames the coal and electric power producing industries for global warming and climate change – adopting regulations to shut down both industries – while being fully aware that geoengineering is by far the greater culprit. But that is a scandal deserving its own detailed commentary at another time.

      In each and every one of these concerns you will find the hand of the ruling elite advancing its agenda. If investing capital providently in this context proves to be impossible, perhaps addressing the underlying cause will become thinkable. ~