Since mid-2008, U. S. economic and monetary policies often appear entirely without historical precedent. In barely five years the Federal Reserve quadrupled the number of dollars in the monetary base. This enabled President Barack Obama’s U. S. Treasury to borrow and spend in more prodigious amounts than any previous administration. But today’s U. S. conduct has parallels – none reassuring – in the Teens, the Thirties and the Seventies of the 20th Century.
Earlier Obamas: Wilson and FDR
President Woodrow Wilson delivered the ruling elite their much desired graduated income tax against those who “earned income,” and a privately owned central bank (the Federal Reserve) with license to issue all currency in the U.S. Both the Fed and the IRS came in the same year, 1913 – 100 years ago. And that’s not all.
Wilson took the U. S. into World War I in 1917. While that monstrosity of human annihilation proceeded, the so-called “influenza” of 1918 was loosed from the elitist cabal’s laboratories onto the world to exterminate millions more, including more U. S. citizens than all wars in history combined.
Both the global war and the “flu” served well to alleviate the “greatest evil” on the planet, according to the cabal’s thinking: human population growth. So Wilson was a hard act to follow. But he expressed regrets for delivering the nation into the clutches of a cabal of evil men, so Wilson’s presidency ended on a sour note from the ruling elite’s viewpoint.
Franklin D. Roosevelt delivered big-time for the ruling elite. He did so without giving up the presidency (while he lived) and with no public expression of regret. At his first inauguration, FDR told the nation “The only thing we have to fear is … fear itself.” To this day, he is revered for “courageous optimism” perceived in that statement.
FDR knew to a certainty at the time (1933) that Americans were under a vicious attack by the same elitist cabal which controlled Wilson. He stated as much in a private letter to a financial sector cohort. Roosevelt could have alerted those who voted him into office and led a counterattack on their behalf, but he didn’t. He was the cabal’s man. He was, in fact, leading the offensive against the people.
Roosevelt’s statement that fearfulness among the people was to blame for the Great Depression was deceit on a scale equivalent to Obama’s “if you like your health insurance plan, you can keep it.” Both presidential deceptions will “live in infamy” alongside FDR’s report of Japan’s “surprise” attack at Pearl Harbor on December 7, 1941, which FDR orchestrated in league with the cabal.
Look past the nettlesome New Deal programs which were made FDR’s public face by major media controlled by the cabal. His most consequential actions were executed with so little transparency as to be nearly covert.
FDR’s single most destructive economic subversion during the Thirties was his semi-secret purchase of 13,000 metric tons of gold, which he removed from the global monetary system. This was about 3,000 metric tons more gold than was owned by all other nations in 1930. Removing it from the monetary system reduced the gold-based currency supply severely. The U. S. suffered the worst deflation, as FDR kept it on the gold standard he had debilitated so badly.
Prices of commodities and other assets collapsed, of course, due to the imposed scarcity of money. The ruling cabal – who owned the international banks, big oil, big steel, big rail, big utilities, big autos, big agriculture – liquidated and consolidated smaller competitors at fire-sale prices monopolists crave. This the cabal achieved because they completely controlled U. S. government through FDR and Congress.
The Middle Men
After FDR, the elitist cabal had a middle-class businessman (Harry Truman) and a military man (Dwight D. Eisenhower) as presidents, neither of whom was as committed to the elitist agenda as Roosevelt was. Finally, 1960 brought the election of John F. Kennedy, son of FDR cohort Joseph P. Kennedy, and prospects of another elitist operative comparable to FDR.
But JFK importantly cut across major operations of the elitist agenda. He disrupted deployment of Soviet missiles in Cuba, which was being done with cabal complicity. JFK authorized Treasury to issue currency directly. He planned reducing military operations in Vietnam. Thus, JFK was worse than a disappointment to the cabal – he interdicted their agenda. By weight of evidence, he was assassinated for that reason with active assistance of government operatives.
Lyndon B. Johnson, JFK’s vice president and successor, served the cabal by expanding the Vietnam War and the U. S. welfare state. Both actions were financed by Fed money creation in excess of economic production. The cabal knew excess money creation would require dollar devaluation, and so bought Treasury’s gold at $35/oz through their international banks. LBJ’s inability to cultivate the radicalized Left cut his popular support, and he departed the White House after winning one election by landslide.
In 1969, 24 years after FDR’s death, Americans had another president controlled by the ruling cabal – Richard M. Nixon. Nixon’s primary foreign policy operative was Henry Kissinger, who was a Rockefeller man fully committed to the cabal’s agenda. In Nixon’s third year in office, Rockefeller’s man at Treasury, Paul Volcker, persuaded him to end exchanging Treasury gold for dollars at $35/oz., thus breaching the Bretton Woods monetary protocol of 1944.
By then, the gold bought by FDR in the Thirties had been sucked out of Treasury at $35/oz (or by other means) by the cabal. The cabal knew the price of gold would jump after Nixon’s announcement (it quadrupled within two years) and would rise or fall thereafter as their Fed determined.
The Fed’s new authority to manipulate the dollar’s value and interest rates, of course, was used to the cabal’s advantage. Its agenda at the time included domination of the industrial base in Europe. This was accomplished primarily through major cabal-controlled corporations (GM, Ford, GE, IBM, ITT, et al.) and their foreign subsidiaries. Financing was plentiful, thanks to the Fed and the international banks which control it.
Meanwhile, American producers could not maintain living standards due to government deceit and limits on wages and prices. First Nixon, then Gerald Ford, then Jimmy Carter followed the Fed’s lead, pretending that wage and price increases cause inflation, rather than the other way around. This was purely deception, not intellectual confusion, on a par with Obama’s “if you like your healthcare plan you can keep it” promise. But the culprits who caused wage and price instability were harder for voters to identify than are the sponsors of Obamacare.
Much of this may be redundant to your previous readings here. Certainly it is contrary to orthodox writing and teaching on the subject, so new readers may be unaware of historical facts. Again I respectfully urge those who have not read my book The Fruits of Graft – Great Depressions Then and Now to do so for greater context and referenced authorities. Reliable assessment of current realities and risks is impossible without knowledge of past events which color the nature of U. S. government and the private interests which control it.
The Contemporary Morass
U. S. economic policy since mid-2006, when Henry Paulson moved from Goldman Sachs to become “economic czar” as head of Treasury, has not permitted economic growth or even recovery in the conventional sense. This is so, not out of ignorance or ineptitude, but because the ruling cabal does not desire economic recovery of a nature which increases employment or standard of living. As during the Great Depression of the 1930’s, the cabal’s agenda since 2006 has included high unemployment and sharply higher government debt.
As stated here previously, the Federal Reserve (controlled by the international banks and, thus, by the cabal) has created about four times as many dollars since mid-2008 as in all years prior to that date. Those new dollars sucked all of their purchasing power out of the value of pre-existing dollars. The new dollars enabled Treasury to borrow and spend many more dollars, creating much more debt and future taxation, than could have been done otherwise.
The new dollars not loaned to Treasury have been used by the Fed to buy mortgage assets from the big banks and hedge funds. Essentially all of the new dollars have found their way promptly into bank reserves held at the Fed; i.e., those new dollars have not found their way into the Main Street economy to create new jobs, or to create inflation. This is by design – not by accident.
But the $3 trillion in new dollars lay there at the Fed, giving off a glow much like a newly-fueled nuclear reactor, loaded with potentially destructive energy and ready to blow, unless handled prudently. So far, the extreme quantity of new dollars has been kept off Main Street by Fed influence over banks through a “lend and you die” sentiment.
Constraint over bank lending, despite high rate of monetary base growth, is consequential, as recently described by Professor Steve Hanke of Johns Hopkins University. Normal practices of fractional banking involve lending $10 for each dollar held in reserve; i.e., each dollar added to the monetary base by the Fed may be multiplied ten-fold by banks to increase liquidity in the economy.
So, as observed by Hanke, despite extreme money creation by the Fed and extreme deficit spending by Treasury, Fed constraints on bank lending as previously described are capable of contracting liquidity, so long as the constraints remain. Query: will Yellen throw constraints aside and allow those trillions of new dollars in reserve to be multiplied tenfold? Or at least a significant move in that direction?
Former chairman Bernanke did not do so. He purportedly had a plan for withdrawing those new dollars from the economy before they ignited hyper-inflation. But all that was before Obama and congressional Democrats got caught red-handed in the Obamacare lie.
With Obamacare now about to collapse under the weight of popular outrage with its higher costs and ham-handed mandates, Democrats seeking re-election to the Senate and House in 2014 are desperate. They have two ways to get re-elected: repeal Obamacare, or create jobs. The cabal will insist on keeping control of access to health services, but likely will provide Democratic candidates a sop by permitting job creation to increase for a time.
Thus, do not be surprised if the Fed, now headed by new chair Janet Yellen, amends its confidential counsel of regional or local banks from “lend and you die” to something closer to “lend or you die.” Yellen is a natural for the task, since she reputedly favors “job creation” over “inflation fighting” in the Keynesian trade-off of Phillips Curve theory. The cabal knows how to shield itself from inflation, and jobs can always be destroyed in so many ways at a more convenient time.
U. S. leadership, namely Obama and secretary of state John Kerry, presently would have us deep into another hot war, in Syria and wider environs, if their 2013 desires had been fulfilled. Americans are quizzical beneficiaries of the Russian president, Vladimir Putin, who stepped in front of cabalist war mongers and defused what appeared to be a trumped-up charge of poison gas use by Syrian military.
New regulation of international banks, primarily the so-called “Volcker (think Rockefeller) Rule” restricting proprietary trading in securities, does not alleviate the “too big to fail” problem. The TBTF banks get that status by having power to control the federal government – not by virtue of unbearable harm to the public upon their collapse. TBTFs have power to nullify or ignore regulation without consequence, as Citigroup did in the late Nineties by acquiring major non-bank assets while Glass-Steagall remained the law.
As we devote time to financial intrigues, we must not miss our most vital reality. The stratosphere across America and around the world is being sprayed daily with metallic toxins dispersed by unmarked jet aircraft, while most adults refuse to “look up” and the cabal's media report nothing. Historically severe cold weather is one relatively mundane aspect of global “weather modification” called geoengineering. The propensity of geoengineering to exterminate humans, animals and plants of every species is only slightly troubling to intellectual proponents at institutions including Harvard and Stanford. No surprise at all that this widespread propagation of disease and death happens to coincide with the ruling cabal’s long term goal of human depopulation. This must be stopped, and soon, if we are to maintain the luxury of seeking prosperity and happiness. ~
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