Fiat currency crimes centered in the Bank of International Settlements, the Federal Reserve and the U. S. dollar will either destroy productive middle classes worldwide – as designed – or fiat currencies will be pulled down and criminals behind them brought to justice. The battle is on, and the outcome may become apparent soon, if it is not already. A primary question remaining: will fiat currency criminals have U. S. armed forces on their side, against them, or divided?
How We Got Here
Since 1900, a criminal gang commonly called the Establishment, the cabal or the ruling elite has orchestrated two world wars, a global economic depression, murder of more than 100 million Russians and Chinese, and continuous local wars featuring an astonishing assortment of “false flag” events designed to terrorize populations and provoke conflict. The gang’s power flows from great wealth stolen with levered government authority and from utterly ruthless immorality towards human society.
Recall monetary history. The gold standard monetary system, hailed by some observers as the most socially beneficial conception ever devised, did not collapse. It was destroyed intentionally by President Franklin Roosevelt between 1933 and 1940. FDR increased tax rates, used revenues to buy most of the gold owned by other nations, and he removed that gold from the gold standard monetary system.
These actions drastically shrank the money supply in the U. S. and abroad, forced other nations off the gold standard, and caused prices to collapse from severe deflation. Other nations issued fiat currency so their economies could function and their people could eat. With far more gold than all other nations combined, in 1944, the U. S. dictated the new world monetary system at Bretton Woods. The U. S. dollar would be convertible into gold, but only by European central banks, not by individual Americans. All other national currencies would be pegged to the dollar.
The Bretton Woods protocols perfectly served the wishes of the ruling elite, who controlled the international banks (thus, the Fed), the U. S. Treasury and the international corporations. Americans were not permitted to exchange dollars for gold. But the international banks could present their dollars to European central banks and buy gold at $35 per ounce. By 1971, the ruling elite had bought (or otherwise acquired) nearly all gold FDR added to Treasury during his first two terms (over 13,000 metric tons).
On August 15, 1971, President Richard Nixon “closed the gold window” to the European central banks. Within 18 months, the dollar price of gold quadrupled. This was no surprise to those who orchestrated the events. A pivotal role was played by Rockefeller man Paul A. Volcker, as Undersecretary of Treasury. The central bankers and their owners knew their purchase price of $35 per ounce for gold would look very attractive in the rear-view mirror as planned monetary inflation took hold.
The Present: Not Pretty
At year-end 2014, an ounce of gold cost about 34 times as many dollars as in 1970. Thus, even with the price of gold artificially suppressed by sale of “paper gold” in futures markets, the dollar has lost at least 97% of its value since the Fed was given power to “manage” it. But loss of that last 3% is nearly certain to be the most disruptive and painful experience yet, because future inflation is now very heavily front-loaded by the Fed and Treasury.
U. S. debt in unpayable trillions already undercuts constitutional stability. Trillions issued in new monetary base and exchanged for Treasury securities or mortgage securities are presently held out of circulation by banks as excess reserves at the Fed. If banks were to lend, or even to multiply, those reserves, inflation would rise sharply. Even now, prices rise as China and other countries relieve themselves of as many dollars as possible in exchange for assets (land, buildings) and products (food) of their choice.
Former Fed chairman Bernanke’s “exit plan” to soak up excess QE dollars was always illusory, as is now undeniable, because it assumed assets bought (Treasuries and mortgages) would maintain value. The Fed cannot extract the excess dollars from the monetary base by selling assets, because the assets purchased with those dollars (Treasury securities) are soon-to-be worthless. No one will buy them at anything close to par. At least one knowledgeable observer, Jim Willie of The Hat Trick Letter, suspects Treasury has already defaulted on at least some debt obligations to China and may now be constrained by covenants affecting collateral, including senior claims on current tax revenues.
On this history, the puppet-masters of the U. S. government and the racketeering organization known as the Federal Reserve have severely abused the dollar in its role as the international reserve currency. Americans and others using the dollar around the world have been swindled to enrich the perpetrators, much as every other criminal enterprise seeks to do.
The on-going crimes are worse than “merely” gargantuan financial frauds. Military force, diplomatic muscle and clandestine operations (which, if used by others, would easily fit the category of terrorism) are used to keep the scam going. Add to this dangerous mix the owned, controlled major media which entirely pacify the public.
You now arrive at our present predicament: two parallel “realities” – one which is false and illusory where most Americans dwell, and the other a monstrous criminal enterprise which rips apart the world’s peace and prosperity. If you are inclined to think calling the Fed a racketeering organization is over-the-top rhetoric, you are still living in the illusory universe created by the major media propaganda machine.
If you do not yet know the historical facts which prove the Great Depression was elitist-planned, state-imposed famine designed to starve people to death and to destroy the middle class, you may be incapable of comprehending today’s reality. The Fruits of Graft provides a rare bridge for crossing from illusion into reality, so consider using it if you have not.
Things to Come
New currencies soon will come onto the international scene with this qualifying feature: unit value will be pegged at a specified quantity of gold. The targeted value will be maintained either by direct exchange on demand or by market pricing in foreign exchange.
The BRICS allied nations are presently using gold as collateral for trade letters of credit, thereby eliminating use of dollars in their commerce and reducing demand for Treasury securities as collateral. Russia is said to hold more gold reserves than the 19,000-plus metric tons the U. S. declared in 1940, China holds more than Russia, and both countries are increasing reserves.
The Swiss central bank’s action in mid-January de-pegging its franc from the Euro is another harbinger of similar actions to come. Greece will depart the EU, NATO and the Euro to move closer to the BRICS/MINT commercial alliance, partly to begin selling farm products to Russia again. Germany, France, Belgium, Spain and Japan, among others, are likely to do the same, so as to increase commerce and avoid hyper-inflationary monetary policies the U. S. is pressing on them militarily.
The World Gold Council reports the Federal Reserve holds 6,700 tons of gold as of December 14, 2014, but does not identify the beneficial owner(s) of that gold. Jim Willie reports the Fed holds gold taken surreptitiously from Libya and Ukraine, and from Swiss bank accounts of Gulf nations. The U. S. may have no gold reserves (perhaps a large short position), definitely has lots of debt, and deploys military and clandestine forces around the world. This is dangerous economically and militarily.
Will those who control the U. S. act more recklessly as value of Treasury debt and the dollar’s reserve currency status disintegrate? U. S. sponsorship of the coup in Ukraine, plus ISIS in Syria and Iraq, produced splits within the defense and intelligence ranks, with consequences which are not yet predictable.
The power to create and manage the world’s reserve currency is so valuable those who own the Fed might do anything to preserve it. But the Fed itself has destroyed the dollar’s credibility as reserve currency, presumably according to the wishes of the Fed’s owners. This implies those owners – the ruling elite – are orchestrating both the dollar’s demise and the U. S. government’s fall from global financial and military preeminence. To let go of the Fed and the U. S., the ruling elite must have their eyes on new pinnacles of power. ~
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