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Why Donald Trump Must Shut Down The Federal Reserve And Start Issuing Debt-Free Money

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great-seal-on-the-dollar-public-domainIf Donald Trump truly wants to fix the economy, he must shut down the Federal Reserve.  If he just tries to patch up our current system, he will fail, because it has been fundamentally flawed from the very beginning.  A little over a century ago, very powerful forces on Wall Street convinced Congress to completely restructure our financial system.  An immensely powerful central bank known as the Federal Reserve was created, and the goal was to transform the U.S. dollar into a debt-based currency that would continuously be inflated and to create an endless debt spiral from which the federal government could never possibly escape.  Sadly, they were successful on both counts.  Since the creation of the Federal Reserve, the value of the U.S. dollar has declined by approximately 98 percent and our national debt has gotten more than 5000 times larger.

Americans tend to give most of the credit or most of the blame for the performance of the U.S. economy to our presidents, but the truth is that an unelected, unaccountable group of central bankers has far more power over our economy than anyone else does.  The Federal Reserve has become known as “the fourth branch of government“, but unlike the other branches of government we are told that the Fed’s decisions are “above politics” because they are “too important”.  Fed officials fiercely guard their “independence”, and they fiercely resist any “interference” from Congress, the President, or the American people.

Donald Trump can try to lower taxes and reduce regulations, but what he will be able to do to influence the economy pales in comparison to the immensely powerful tools that the Fed wields.  The Fed controls interest rates, the Fed controls the money supply, and the Fed regulates the banks.

To give you an idea of how enormously powerful the Fed is, I want you to pull out a dollar bill.

As you look at that dollar bill, I want you to notice that it says “Federal Reserve Note” right at the top.

In the financial world, a “note” is an instrument of debt, and the truth is that our system was designed to create as much debt as possible.

So why are we using debt-based “Federal Reserve Notes” in the first place?  Shouldn’t Congress have control over our currency?

According to Article I, Section 8 of the U.S. Constitution, it is Congress that has the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.

So how did the Fed get involved?

Well, it is a very long and convoluted story, and if you are interested in the history behind it I would commend to you an excellent book by G. Edward Griffin entitled “The Creature from Jekyll Island: A Second Look at the Federal Reserve“.  Basically, big money interests on Wall Street got their hooks into the White House and Congress, and they rushed through legislation right before Christmas in 1913 that created this insidious central banking system that was designed to slowly but surely take wealth from the American people and put it into their hands.

Sadly, most Americans don’t even realize that we have a debt-based currency, nor do they understand where our money comes from.  In a previous article, I discussed how money is normally created by the Federal Reserve under our current system…

When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.

Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.

The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.

The Federal Reserve takes the U.S. Treasury bonds that it receives in exchange for the “Federal Reserve Notes” that it gave to the government and it auctions off those bonds to the highest bidder.  But of course this process always creates more debt than it does money…

The U.S. Treasury bonds that the Federal Reserve receives in exchange for the money it has created out of nothing are auctioned off through the Federal Reserve system.

But wait.

There is a problem.

Because the U.S. government must pay interest on the Treasury bonds, the amount of debt that has been created by this transaction is greater than the amount of money that has been created.

So where will the U.S. government get the money to pay that debt?

Well, the theory is that we can get money to circulate through the economy really, really fast and tax it at a high enough rate that the government will be able to collect enough taxes to pay the debt.

But that never actually happens, does it?

And the creators of the Federal Reserve understood this as well. They understood that the U.S. government would not have enough money to both run the government and service the national debt. They knew that the U.S. government would have to keep borrowing even more money in an attempt to keep up with the game.

So our debt just keeps going up and up and up.  While Barack Obama has been in the White House our national debt has risen by more than 9 trillion dollars, and at this moment it is sitting just under the 20 trillion dollar mark.

But we shouldn’t be surprised by this, because this is precisely what the Federal Reserve system was designed to do to us.

Many conservatives still hold to the mistaken illusion that we could somehow pay all of this debt back someday, but as I have shown in a previous article, this is mathematically impossible to do.

If the government went out today and grabbed every single dollar in existence we could not pay back the national debt, and of course we have trillions of dollars of household debt, trillions of dollars of corporate debt and trillions of dollars of state and local government debt that we need to pay back as well.

Under the current system our only hope is to keep the wheel spinning by continuing to devalue the dollar and by continuing to go into even greater amounts of debt.

And of course it isn’t just the United States that is in this predicament.  At this point, almost every single nation on the entire planet has a central bank.

Even though there are extremely sharp disagreements among nations on virtually everything else, somehow central banking has achieved nearly universal adoption.

As you read this article, well over 99.9% of the population of the globe lives in a country that has a central bank.

Do you think that is just a coincidence?

Of course there are still a few very small countries such as the Federated States of Micronesia that do not have a central bank, but the only big nation not to have one is North Korea.

And you would literally have to be insane to want to live in North Korea.

But now we have an opportunity to get free from this insidious system.  The truth is that we don’t have to have a central bank.  In fact, the greatest period of economic growth in U.S. history was when there was no central bank.

We don’t need central planners to set our interest rates and to manipulate our money supply.  They will never admit this, but the reality of the matter is that their interference in the economy often creates tremendous economic busts.

Since the Federal Reserve was created in 1913, there have been 18 distinct recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.

Considering their track record, isn’t it time for a change?

And we don’t have to have a debt-based currency.  In fact, not too long ago we had a president that decided to start issuing debt-free “United States Notes”.

Back in 1963, President John F. Kennedy issued Executive Order 11110 which authorized the U.S. Treasury to issue debt-free “United States Notes” which were directly created by the U.S. government.

He was assassinated shortly thereafter.

Most Americans don’t realize this, but many of the debt-free United States Notes that were issued under President Kennedy are still in circulation today, and President Trump could do something similar.

But will he?

It has been said that the borrower is the servant of the lender, and the Federal Reserve system has turned all of us into debt slaves.

Debt is a form of social control, and the global elite use all of this debt to dominate the planet.  The total amount of debt in the world just hit a brand new record high of 152 trillion dollars, and the longer we allow the central banks to control the system the bigger this debt bubble will become.

There is a way out, and here in the United States that starts with shutting down the Federal Reserve and issuing debt-free currency.  It would take someone very bold to make a move like this, and so let us hope that the man that we just elected is up to the task.

 
  • greanfinisher .

    So do the Federal Reserve Notes suddenly become worthless if the U.S. Treasury decides to print its own currency? Can you just imagine the mayhem that would cause? Why, a stunt like that would drive hundreds of millions penniless.

    • B Davis

      No they wouldn’t become suddenly worthless. They already are worthless. Just realization of there worthlessness. Everyone at some point will come to that realization. Those that realize it first will be better off.they will trade it to those who still think they possess value for something that does!

      • anonymous

        Right, that’s why I am trading mine for things like solar panels and batteries. I also like collecting knives and other hunting equipment. Learning to become self-sufficient is much easier during times of peace than in times of war.

        • B Davis

          All very worthwhile!

      • socalbeachdude

        Laughably false and an extremely stupid and utterly bogus assertion.

        The US dollar has soared in purchasing value over the past 5 years and is skyrocketing in currency exchange value on the DXY (basket of currencies) and is now at 101.34 on the DXY which is a high for the year and up dramatically over the past 5 years.

        http://www.marketwatch.com/investing/index/dxy

        • B Davis

          That has what to do with my statement?

        • B Davis

          You act like you just provided some groundbreaking new information. Everyone is well aware of what the dollar index is at. What I am talking about is a psychological phenomenon.

          • socalbeachdude

            What “psychological phenomenon” are you talking about? Hopium? False perceptions? Asinine speculative mania? Total disregard to real risk of loss? Please do explain your “psychological phenomenon!!!

          • B Davis

            What are you taking about? Can you not even keep track of the subject?

          • socalbeachdude

            Exactly what “psychological phenomenon” are you talking about?

  • chekmate2

    It seems to me that even a United States Note would still be fiat money unless it was backed by something; whatever that something is. Also, the current accumulated debt would have to be liquidated somehow. Would that be nationalizing the debt? By that I mean the United States would say that that debt was null and void and what happens to the holders of that debt? Do they get anything in return for suddenly worthless Federal Reserve Notes? Who would be included in that repudiated debt? Would the Federal Reserve Notes be exchanged for United States Notes and at what exchange rate? If there is no exchange, then would existing Federal Reserve Notes (that’s the money in your wallet) become worthless? How about electronic money? These are just some of the questions that need to be asked and answered. It is an interesting concept, though.

    • B Davis

      The loss of wealth your visualizing would happen but actually it has already happened just has not been made manifest. The point is taking the power away from these people. So they can no longer steal the wealth of the country.

      • anonymous

        How do you define power?

    • socalbeachdude

      The US dollar, like all currencies, is backed by the current and future assets and labor and productivity of the citizens of the issuing government which is VASTLY MORE VALUABLE than some little junk commodity such as gold or silver.

  • rat28

    Without the FED, US economy would have collapse in 2008. Trump is not so stupid to abolish the FED

    • Reader

      Without the Fed, there would have not been bubbles that collapse.

      • socalbeachdude

        Absolutely false. The Federal Reserve did not create any “bubbles” and the entire responsibility for that was on FOOLISH PEOPLE AND MANIC SPECULATORS and nobody else.

    • David Kramer

      First of all, the economy would not have collapsed. Second of all, the best thing that could happen to this economy would be to collapse. Then maybe we can start all over again with real money and not worthless paper FRNs.

    • socalbeachdude

      As to 2008-2009, there was no “financial crisis” at all, but rather just an accounting issue with FASB Rule 157 (“mark to market”) and as soon as that newly implemented rule was rescinded on March 9, 2009, assets had a sudden and “miraculous” recovery.

      Practically NOBODY WANTED ANY OF THOSE SO-CALLED “BAILOUTS” which were nothing other than VERY SHORT TERM LOANS WITH VERY HIGH INTEREST RATES OF 6% to 9% which were FORCED ON FINANCIAL ENTITIES and all of which were IMMEDIATELY REPAID as soon as that was allowed.

      No money was “given” to anyone from the US government and there was NO NET COST AT ALL for those “bailouts.”

      The major underlying cause of the 2008-2009 PERCEIVED (NOT REAL) LIQUIDITY SITUATION was the enactment of the Gramm Leach Bliley “Financial Services Modernization Act of 1999” which a number of folks predicted the day it was signed into law by President Bill Clinton would result in a major financial disaster within 10 years. It only took about 8 years for that to happen.

      • B Davis

        ABSOLUTELY FALSE. NONSENSE. UTTER RUBBISH.

        • socalbeachdude

          What I stated is fully correct.

          FASB Rule 157 was a very ill-advised move and the primary reason behind the so-called “financial crisis” of 2008 which was immediately alleviated as soon as that rule was essentially rescinded in very early March 2009.

  • William Lutz

    I don’t think Trump would do it.

    • anonymous

      Right, why would he bite the hands that have been feeding him so well?

  • K

    Which is why the banks and certain other people should be very careful. About crashing the economy. If the economy is already destroyed, why not destroy the Fed. Why not launch massive investigations, into the banks. .If the economy is truly destroyed, nothing left to lose.So to the ones who wish this Country harm, a small message. Against a man or a people with nothing left to lose, you can not dig your bunkers deep enough.

    • anonymous

      Ha ha ha, inspiring words. They should be afraid of us.

  • HeyAHuman

    If people were informed and passionate about ending the Fed, they’d have voted for Ron Paul. Either way, the prez would likely be arsearseinated if he even tried.

    • B Davis

      They wouldn’t even have to vote. Just exchange their dollars for silver . Just a few million Americans and the fraud would be exposed.

      • HeyAHuman

        The problem is that silver is severely undervalued via market manipulation. They’ve got the people in a fiat trance. I’m afraid it will take dire circumstances for the people to wake up.

        • B Davis

          I agree

        • socalbeachdude

          Silver is absurdly OVERPRICED and should be selling for around $4 per ounce where it was in 2001.

          • B Davis

            So let’s see the math that proves silver should be 4 dollsrs.

          • HeyAHuman

            You know that the major banks colluded to manipulate the price DOWN in order to keep the dollar strong and to sell silver futures, don’t you? Especially JP Morgan. Look up Andrew Maguire and the attempt on his life when he tried to expose them. I don’t know where you get “OVERPRICED” from lol…

          • socalbeachdude

            Laughably false. The total value of all silver in the world is so minuscule as to be totally irrelevant and banks have no interest at all in that stuff and do not in any way “manipulate” the commodities markets. The price of silver was stable at $1 per ounce for hundreds of years going into the 20th century and then stayed around $2 per ounce until 1972 when the MANIC SPECULATIVE COMMODITIES FRENZY broke out.

            The price of silver then rose to $50 per ounce by January 1980 before crashing 90% back down to $4 per ounce by 2001. Then it started soaring again and hit $50 per ounce by April 2011 before crashing back down to its present price of around $16 per ounce which is still more than double its mean price of $8 per ounce where it is headed.

      • anonymous

        If everyone just exchanged their digital currency for paper currency the system would collapse. Any tangible asset really. Although, I wouldn’t consider paper a tangible asset. Unless you run out of toilet paper and need to wipe your asset. But in that case I think I would use a rag, wash and reuse.

      • socalbeachdude

        Gold and silver have NOTHING WHATSOEVER TO DO WITH MONEY and are just preposterously overvalued little niche collectible fungible commodities with no monetary value or utility whatsoever in our modern electronic digital money world. They are not accepted anywhere in the world for anything other than the face value of coins they are denominated in and in the case of American Eagle 1 oz. gold coins that is $50.

  • B Davis

    “Unelected unaccountable group of central bankers” or as Hitler called them ” international jewry”.

    • retired22

      Why Jews?
      How about all of the western European & nominally Christian financial elites behind this swindle?

      • B Davis

        Unelected unaccountable central bankers.

    • LIZ THE SHIZ

      siege hiel a-hole

      • Tatiana Covington

        “Sieg heil” is correct.

  • Schvinc

    Michael, that was the exact article you needed to write. Congratulations! Wah Hoo Wah, Brother!!!

  • ISA41:10

    Michael you are dreaming!!! You’re deluding yourself if you think Mr. Trump will be able to keep 1/10th of his promises, even with a Republican congress. He plans to upset their applecart, “drain the swamp” so to speak, and they aren’t about to allow that!

    He’s also going to have to continue to deal with a very angry liberal mainstream media who hates his guts, and will go to any length to derail his presidency before it even gets started.

    Very little will change.

    • anonymous

      Prophecy must be fulfilled. Sooner or later. Or later. Or later.

    • Paul Patriot

      Agreed. No one is going to shut down the federal reserve, because their are a lot more powerful people (global elite) who will have Trump murdered if he attempts it. It delusional to think otherwise. If you really want to know someone and what’s really in their heart and what they are capable of…..just threaten taking their money and see the bad things that happen.

      Its delusional to think for a second that Trump or anyone is going to be able to end the 100+ year prosperous wave to and end that these bankers have been riding.

      • Larry Rhodes

        EVERYTHING comes to an end sooner or later!!!! NOTHING is invincible!!! Never has been never will be!!! Trump has a lot more support than MSM is reporting!!! That is a fact!!! Not only must the FED go but so must MSM!!! Trump can take out the FED and We The People can take out MSM by boycotting them!!! If they are not making any money, what happens to them??? They go out of business!!! We don’t watch there shows, don’t buy there magazines, newspapers, subscribe to their websites, basically ignore them and they go away!!! Problem solved!!! United We Stand and Divided they fall!!!!

        • socalbeachdude

          No President of the USA can do anything whatsoever to “shut down the Federal Reserve.” It was created by an ACT OF CONGRESS and that act can only be modified or repealed by Congress itself.

          I would suggest that you read and attempt to comprehend the Federal Reserve Act at:

          https://www.federalreserve.gov/aboutthefed/fract.htm

          • Larry Rhodes

            It does not matter what the federal reserve act says!!! It is one of the things that is broken about our government and we elected Trump to fix those things and he will find a way to do so!!! Congress will help him fix what he cant on his own!!! Period!!! Yall keep thinking like Trump is a politician and he is not!!! He is not going to do things like you are used to!!! And that is exactly why we elected him!!! Business as usual is over folks!!! Get on board or get out of the way or you are going to get run over by the Trump Train!!! God Bless the USA!!!

          • socalbeachdude

            False. All that matters is PRECISELY WHAT THE FEDERAL RESERVE ACT CLEARLY STATES and that Act CANNOT BE ALTERED OR RESCINDED BY ANY PARTY OTHER THAN CONGRESS.

            Donald Trump fully RESPECTS AND OBSERVES THE LAWS OF THE USA and will enforce it accordingly as head of the Executive Branch of the US government.

          • Larry Rhodes

            You just don’t get it!!! Trump is about to become the most powerful President in history!!! Rep House, Rep Senate, Conservative Supreme Court after he makes his appointment, and the number one goal of changing EVERYTHING that is wrong with our government and the quite possibly includes the FED!!! And if he wants it gone it will be!!! Get this thru your head, HE IS NOT A POLITICIAN!!! He is not going to do things the way politicians do!!! He is going to do things the way a CEO does!!! He is taking over a failing company with plans to make it profitable again!!! He is going to cut the dead weight lose!!! That includes any organization that is hindering or not pulling its weight!!! Whether you like it or not, you cant look at Trump like you would any other President!!! If you do, you will be wrong!!!

          • socalbeachdude

            No. It is YOU who doesn’t “get it” at all. Donald Trump is not an “Occupy Wall Street” radical but rather a businessman who understands the purpose and importance of the Federal Reserve and during his administration VERY LITTLE WILL BE CHANGED IN THE US rather than the emphasis of individuals he puts in various positions.

            The Federal Reserve is the SINGLE LARGEST ENTITY CONTRIBUTOR TO US GOVERNMENT REVENUES EACH YEAR AND REBATES 94% OF ITS PROFITS EACH AND EVERY YEAR TO THE US TREASURY and doesn’t cost the US government or its taxpayers a single penny. Are you somehow unaware of those simple and very straightforward facts?

  • B Davis

    I think Micheal has pointed out many times our problem is a morally bankrupt society. It has passed the point of degenerate and is on a possibly new level of spiritual sickness.

    • anonymous

      Well, there’s nothing new under the sun. But we sure are rehashing the old sins quite well.

  • john

    buy bitcoin…

    • anonymous

      Because those haven’t ever been stolen and are a super secure storage of wealth. Not………

    • socalbeachdude

      Bitcoin is TAXED AS PROPERTY BY THE IRS IN THE USA and is subject to capital gains tax.

  • Cal

    Kudos to JFK. On 6/4/63 Kennedy signed an executive order authorizing the Treasury to print debt free US treasury notes aka silver certificates in lieu of debt ridden federal reserve notes. The amount authorized to print equivalent to the value of silver in US vaults. Not a direct attack on the Fed but an attempt to phase out federal reserve notes hence neutralizing the central bank. The plan almost worked but the ambush in Dallas followed by toady LBJ bowing before the money gods by removing treasury notes and restoring federal reserve notes ended the experiment.

    • sister soldier

      Almost worked and they probably showed the Dallas film to Trump the first day he entered the white house.

      • Rick

        It amazes me that Johnson, Nixon, and Bush Sr. We’re all in Dallas that same day. Just another coincidence I suppose. In any event Trump need not worry, they are all dead (for the most part).

        • sister soldier

          During my studies according to some sources JFK didn’t want to play the establishment’s game but L.B. Johnson would. That should tell some they in fact do control and shape world affairs.

        • olde reb

          Who done what ?

          ACT OF TREASON by John Groden; PLAUSIBLE DENIAL by Mark Lane; HIGH TREASON by Mark North; JFK AND THE UNSPEAKABLE by John Douglas.

      • jsmith

        I wish to God that Trump has the tenacity to create a praetorian guard that he can trust, either openly or covertly besides the secret service. He is going against the most formidable national and international banking cartel that owns our country and planet. They will not be relinquishing power without a massive and dictatorial attack by Trump on the banks, the mainstream media, and the coalition of socialist-communists within the democratic party, and the treasonous elements within the republican party. If this sounds dictatorial, then so be it. You are not going to get anywhere playing nice with these international termites!

        • sister soldier

          I agree with that! You can’t play nice with the devil.

        • Tom Kauser

          He walked away from a billion dollar loss to the bankers and broke the bank ?
          He could walk on water with a golden ticket as a ” kick me sign” on his back and still be self confident enough to kung fu matrix any death squads and not mess up a single follicle!
          He is the most interesting man in the world!

        • Larry Rhodes

          I totally agree!!! Especially since the son of satan George Soros is backing them!!!

    • Rick

      Yep that one was quite a coincidence.

      • Sailcat

        Coincidence… NOT.

    • David Kramer

      “but an attempt to phase out federal reserve notes”

      You have it completely backward. See my comment above about JFK, those Silver Certificates, and ending
      the Fed. He was not going to end the Fed—and those Silver Certificates
      were used to retire the remaining silver held by the Treasury in order
      to replace them completely with FRNs.

      • Jimi Bigbear

        Good article David. The “FED” as you know is a PRIVATE central bank that only appears to be PUBLIC. It issues its own debt – notes – as you pointed out – masquerading as government (PUBLIC) money. The “FED” is the 4th PRIVATE central bank in America – all modeled on the PRIVATE “Bank of England” in the “City of London.”
        I have two links to recommend:
        https://www.blackhousepublishing.com/central-banking – Goodsons History of Central Banking and the Enslavement of Mankind, and
        Ellen Brown – author of The Web of Debt – her latest article:
        https://ellenbrown.com/2016/11/14/trumps-1-trillion-infrastructure-plan-lincoln-had-a-bolder-solution/

        • socalbeachdude

          That article is nothing but utter propaganda nonsense filled with totally false assertions written by that EXTRAORDINARILY STUPID AND IGNORANT woman, Ellen Brown, who is an utter ignoramus as to all her absurd and false notions.

          • Jimi Bigbear

            Hopefully your ignorant and stupid remarks will drive MORE people to read it and judge for themselves.

          • socalbeachdude

            What I stated is 100% true, accurate, and correct. Ellen is as clueless as they come.

          • Old Salt

            Bet you’re under 45 and a product of the socialist schools in this country. You’ve bee taught ‘what’ to think, no ‘how’ to think. And not “have always been” the FED didn’t exist until 1913. You can’t take your opinions and make them facts without historical record to back you. I don’t know who this Brown is, but calling her names is not argumentative…it’s just name calling.

          • socalbeachdude

            Laughably false. I have been a student of the Federal Reserve since my Economics Class in Money & Banking at a major University back in the early 1970s and have observed it very carefully over the past more than 40 years. That was back in the Arthur Burns days, by the way. What I have stated is NOT OPINIONS but rather facts in all of my posts here.

            Sadly, Ellen Brown is a clueless person with little comprehension of the Federal Reserve and has written numerous pieces of bogus BS on aspects of the Federal Reserve which she obviously doesn’t even begin to comprehend which is precisely why I classified this person in exactly the way I did.

          • retired22

            He just answered My doubts,….he does not care about the rights & wrongs inherent in the fraudulent scam.
            He states, himself, that he is an insider feeding off of the scam & it is in his own financial interest in defending the thievery.

          • socalbeachdude

            There is no “fraudulent scam” at all.

          • olde reb

            I notice socal beach identifies NO specific statement of Ellen which he submits to review.

          • socalbeachdude

            Everything that person has written is based on totally bogus notions. Her biggest problem is that she doesn’t even begin to comprehend what money is and how money works in a financial system and a functioning economy.

          • olde reb

            Again, you write ONLY smears and your personal opinion. You give NO indication of why EB is incorrect. She certainly is more rational and documented than Dan Sanchez, a shill for the Philadelphia Federal Reserve bank.

          • socalbeachdude

            The entire premise of Ellen Brown on her web site “Web of Debt” is totally bogus and based on wildly false and erroneous assumptions and she states it as follows:

            “Our money system is not what we have been led to believe. The creation
            of money has been “privatized,” or taken over by private money lenders.
            Thomas Jefferson called them “bold and bankrupt adventurers just pretending to have money.” Except for coins, all of our money is now created as loans advanced by private banking institutions — including the privately-owned Federal Reserve. Banks create the principal but not the interest to service their loans. To find the interest, new loans must continually be taken out, expanding the money supply, inflating prices — and robbing you of the value of your money.”

            There is NOT A SINGLE TRUE PREMISE in that entire statement.

            As to Thomas Jefferson, he was one of the most fiscally profligate DEBTORS in the US at the time of his death and that he died owing $107,000 which was a MASSIVE DEBT at the time when his entire Monticello plantation was worth only $4,500 and that he stiffed creditors to the tune of more than $100,000?

            “Because Jefferson died more than $107,000 in debt, his daughter Martha Jefferson Randolph and her son and financial manager, Thomas Jefferson Randolph, found it necessary first to sell nearly all of the contents of Monticello and then to sell the plantation itself. In 1827, the furniture, animals, farm equipment, and slaves were offered at an executor’s sale. In 1831, James T. Barclay, a local apothecary, purchased the home and 552 acres for $4,500, less the value of his own home.”

            http://www.monticello.org/site/house-and-gardens/monticello-house-faq

            Deadbeat Tommy was nothing but a bankrupt debt binger and financial fraud and certainly a TOTAL HYPOCRITE to be making any comments on money or finances.

          • olde reb

            Your claim that the statement is untrue is erroneous.

            Every “dollar” in circulation has been created by the issuance of a Treasury security that accumulates as the National Debt, Every security carries a percentage for interest to be paid. If the
            principal of the “loan” is created by the debt obligation, where is the interest that is required to be paid on the principal created ?

            ANSWER:
            It does not exist and it is not created. Thus, the obligation to pay the interest is impossible to culminate. The “contract” is thus an act of fraud and is legally void from its inception.

            [NOTE: The creation of new money by commercial banks with the fractional
            reserve scheme does not change this conclusion. The commercial banks merely use the above money as “reserves.” They loan on their own credit. If the Fed (FOMC) sold securities from their stock, it would reduce the commercial banks reserves (and collapse the commercial banks loans). This is precisely the way the Fed collapsed the economy in
            1928-1935 so that gold identified Notes could be forced out of circulation.]

          • socalbeachdude

            Those are absolutely false and extremely ignorant assertions. No, not every dollar in circulations has been created by issuance of US Treasuries. You have no conception whatsoever as to how the money supply is created and increased through velocity in the money supply.

            The Federal Reserve only owns less than 13% of all US Treasuries in existence for a total of about $2.5 trillion of the more than $19.5 trillion of US Treasuries in existence. And those owned by the Federal Reserve are essentially INTEREST FREE to the US Treasury as the Federal Reserve annual rebates more than 94% of its profits to the US Treasury.

          • olde reb

            It is YOU that is totally ignorant of economic reality.

            An increase of money in circulation is created only by deficit spending.
            (Loans by commercial banks create only credit by the banks which is
            negated when the loans are paid off. They are not inflationary nor
            are they permanent or relevant to this writing.)

            Deficit spending as authorized by Congress results in a deficit security
            being sent to the FRBNY which then makes a book entry creation of
            fiat money on a government account. The Treasury Department spends
            the book entry money to pay government expenses.

            The deficit security is a debt instrument and inherently carries the obligation for the government to pay the holder of the security the value of the principal PLUS the interest accumulated at the due date (assuming a one year obligation).

            The principal of the note can (theoretically) be collected from the
            market. The interest has never been created. To obtain the funds, more debt must be created which is currently approaching $20 Trillion and merely postpones the inherent collapse of the Ponzi scheme. [If the FOMC were to sell all of the securities in their folder (to pay off the National Debt), it would result in a complete depletion of the Reserves of commercial banks and create a depression beyond comprehension. This reduction of commercial bank reserves action was
            used by the Federal Reserve to deliberately precipitate the 1928-1935
            Depression. The goal was to remove gold identifying currency from
            circulation.]

            The National Debt can never be paid off, just as any other Ponzi scheme.
            A contract that cannot be culminated is an act of fraud and is void from its inception.

          • socalbeachdude

            Nearly 88% of all outstanding US Treasuries are OWNED BY PARTIES OTHER THAN THE FEDERAL RESERVE and only 8% of the around $7 trillion of US Treasuries issued each year by the US Treasury are purchased by the Federal Reserve.

            Your false assertions appear to be based on your total lack of comprehension of the concept of VELOCITY of money in an economy.

            The Fiscal 2016 deficit spending by the US Treasury was more than $1.4 trillion and the total US federal debt is now soaring towards $20 trillion. That, however, is not how money enters the economy, but is just part of the massive US AND GLOBAL DEBT PROBLEM which includes more than $64 trillion of total debt in the US.

            The VELOCITY OF MONEY increases the amount of money available in any economy as the money circulates through an economy and is both spent and invested. Money is not a static thing but a very FLUID THING where it changes hands many thousands of times in its existence.

            Nothing is “negated” when loans are paid off. Loan payments simply go back to any lender and are REINVESTED IN OTHER ASSETS and that process in no way diminishes the amount of money available in any economy. Obviously.

            Deficit spending by the US most certainly does not result in the absurd and erroneous scenario you stated. There is no such thing as “Federal Reserve “debt securities” at all and what is sold by the US Treasury are known as US TREASURIES which range in duration from 1 month to 30 years. Deficit spending only means that the US Treasury MUST SELL AN AMOUNT OF US TREASURIES (bills, bonds, notes, and TIPS) equal to the amount of the annual deficit to fund the US government, and nearly 88% of these are purchased by PARTIES OTHER THAN THE FEDERAL RESERVE and the Federal Reserve only purchases about 8% of these annually.

            The Federal Reserve only owns about $2.5 trillion of the outstanding US Treasuries which is about 12.8%. If they were all sold off to commercial banks or other parties, that wouldn’t matter the slightest bit of a hoot as IT DOESN’T MATTER AT ALL WHO OWNS THEM and they are due and payable to their owners upon maturity by the US Treasury.

            The Federal Reserve is paid the proceeds of US Treasuries upon maturity and reinvests those funds in new US Treasuries to maintain the level of their investments in US Treasuries. Once again that is less than 13% of the total outstanding of US Treasuries, and if the Federal Reserve sold off their $2.5 trillion of US Treasuries into the $13 trillion a year US Treasuries market, that would matter a hoot and would have impact whatsoever to banks.

            I would suggest you learn about US Treasuries and how they work at:

            http://www.TreasuryDirect.gov

          • retired22

            He is just a loud mouth shill,…may be on someone’s payroll!

          • retired22

            I needed Ellen Brown to point out what I see?
            I don’t read Ellen Brown & I don’t need her opinion.
            I have my senses & a brain to comprehend what those senses tell me.
            As I believe what Henry Ford,in one of his more lucid moments, said…
            There is nothing that the Federal Reserve Bank does that can’t be done by the Treasury Department!

          • retired22

            This guy always shows up to repeat the official line to all the doubters,I wonder how much they pay this hack?
            He is like one of those Media types who give us the “Who do you believe,…me or your lying eyes” song & dance routine.

          • olde reb

            which federal bank do you work for ?

    • socalbeachdude

      Absolutely false. JFK did not such thing at all. David Kramer and I have very clearly explained that here in a number of comments both above and below.

      • retired22

        He didn’t sign the order to print silver certificates?
        Marilyn Monroe did it for him while he was getting dressed!

    • none

      GREAT NEWS EVERYONE!
      The U.S. Mint has just announced that they have stopped production of silver dollars (it’s all over the Utube ).
      Now you won’t have to worry about that pesky little metal until next year? Hopefully.

    • tCotUS

      Yep, last time we tried cutting ties with the Federal Reserve we had many dead American bodies. Research just who were dealing with in the Federal Reserve. You just as well lock horns with the Devil himself.

      • socalbeachdude

        False.

        • tCotUS

          On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business. The Christian Law Fellowship has exhaustively researched this matter through the Federal Register and Library of Congress. We can now safely conclude that this Executive Order has never been repealed, amended, or superceded by any subsequent Executive Order. In simple terms, it is still valid.
          Now…….F U

          • socalbeachdude

            Absolutely false, as as been detailed very extensive in multiple other posts by myself and David Kramer specifically citing Executive Order 11110 which has nothing whatsoever to do with what you are incorrectly attempting to assert.

          • retired22

            Kramer,I read some of his nonsense.
            Is he your partner in crime?
            The two of you remind me of Laurel & Hardy!

  • Stuey

    Yeah, i agree. Then why when I say negative things about the Federal Reserve in the comments section you delete them? I have been reading this blog for years, pretty much since the beginning. Sad to see you delete comments you don’t like but yet allow these idiots on here make all kinds of silly arguments sometimes borderlining on vulgarity.

    • ALWAYSTOMORROW

      Now now. Let me go get you a tissue and some coco.

      • Stuey

        yeah…..exactly the type comment i was talking about. Just a bunch of idiots on here who like to act like children and make stupid comments. Which Michael is apparently fine with. But god help you if you post something intellectual that goes against what he said in his article.

        • ALWAYSTOMORROW

          Try posting something intellectual and lets see if it gets deleted. I here to help if you need it.

          • Stuey

            I already posted something intellectual but you will never get to see it because Michael deletes anything that proves him wrong. I never even heard of Stewart whoever.

          • Stuey

            And go ahead and post some other smartass or insulting comment, seems like that is all you know how to do.

        • I moved your cheese

          Please ignore it. It’s overflowing with hubris and disdain.
          It’s only here because it’s bored and seeks to quiet its inner strife.
          It thinks it’s complicated, but it’s simply broken and insecure.
          I will pray for it, then I’ll have a handful of cashews and a can of sprite…

          • ALWAYSTOMORROW

            The rapid shortening of daylight seems to have led you to boredom and has driven you back here R.I.M.

            It is good to see you back.

          • I moved your cheese

            Countervailing forces. Present here are the counterweights to the snowflakes currently in crisis.
            The equation seeks balance.
            Both need tissue, chocolate, coloring books, hugs and the ability to maintain decorum.
            The lack of individual responsibility is resident in both sides along with a reliance on drama and the habit to portray oneself as a victim.
            Saddening.

  • BATTLE LOG

    I can’t believe you were able to write such a detailed article on central banks without mentioning the Rothschild family.

    • socalbeachdude

      The Rothschild family has nothing to do with the Federal Reserve and only operates a very small private client bank in the US primarily for wealth management of high valuation individuals and families.

  • Rhino Horns

    Excellent article.

  • pulltheweeds

    All plutocrats use debt to maintain control over the so called electorate.
    To them it is an asset , not a liability .
    And so it goes.

  • LIZ THE SHIZ

    careful Michael, the IP providers may include you as a FAKE NEWS SITE

    • Sam

      You mean like Infowars…Current headline from their site:
      “QUANTCAST BLACKLISTS INFOWARS AS “FAKE NEWS” FREE SPEECH PURGE ACCELERATES
      Establishment media – kings of fake news – appoint themselves moral authority over identifying “fake news””

  • df NJ

    Best article Michael has ever published!

  • df NJ

    Even though Obama is black, this really isn’t his fault:

    “So our debt just keeps going up and up and up. While Barack Obama has been in the White House our national debt has risen by more than 9 trillion dollars, and at this moment it is sitting just under the 20 trillion dollar mark.”

    • socalbeachdude

      Obama is HALF BLACK and HALF WHITE.

  • df NJ

    Here’s what the London Times said after Lincoln had the the US Treasury print interest free legal tender:

    “Shortly after that happened, The London Times printed the following: “If that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed, or it will destroy every monarchy on the globe.”

    I love Jesus just as much as all of you. But the real anti-Christ in the world, the real Satan the world is facing, is not Obama or Hillary. The real anti-Christ Satan is monarchy. Satan is about accumulating power at the expense of everyone else. Christ to me above all else is about egalitarianism both spiritually and economically. I know I have a lot of irreverent outspoken views. But I really hate slavery and the centralization of power through monarchy.

    • HeyAHuman

      I saw your thread at Abovetopsecret saying “Trump played you all like a fiddle”. It got a lot of attention.

    • Sam

      So did God. Remember Nimrod?
      Power corrupts and absolute power……

    • socalbeachdude

      That is a very incorrect OPINION piece.

  • Rick

    Michael, very well done article. I couldn’t agree more with you, one of the many things Trump needs to change or end is the Fed!

  • GottaLaughSometimes

    OLD YELLEN
    COME BACK YELLER
    BEST DOGGONE DOG
    IN THE WEST

  • Tom

    There may be a lot of JFK silver certificates that are technically “in circulation” but you would have to be asleep to let one slip through your fingers. In any event the ones that did stay in circulation wore out decades ago. I still have a couple of them tucked away in a safe place and treasure them for far more than the face value — they are like reminders of a grand historical truth that currency can be more than the debt-based swindle toilet paper that we have now.

    • David Kramer

      See my comment above about what those Silver Certificates issued by JFK were about. They were issued in order to END the use of Silver Certificates and to replace them with FRNs.

  • Tom

    Take note that the one thing you NEVER hear in the rising chorus for a “cashless society” is any talk of relinquishing the 2%-4% charge for all credit card transactions. The bankers have already imposed what is essentially a tax on all transactions done through them, a cost which is reflected in every price whether you pay in cash or not. Once they have forced the cashless society on us they will be free to raise this percentage to whatever they want.

    This is the boiling-frog approach to shifting taxation from the government to the corporations, whereupon they use the profits to further buy the government out from under the people. Remember that the US income tax started at just 1%; the cashless tax is already more than that.

    • socalbeachdude

      You seem to be totally unaware that a MERCHANTS COST FOR HANDLING CASH IS MUCH HIGHER THAN THE CHARGE MADE BY A CREDIT CARD COMPANY.

      • Tom

        I don’t know which merchants you’re talking about. I’ve done it both ways, credit cards and checks (I was almost exclusively mail order) One day I timed myself for adding up all of the checks, filling out a deposit slip, parking, going into the bank, standing in line, and making the deposit. To my surprise, NOT paying the credit card fee on all the money that came in the form of checks was THE MOST PROFITABLE THING I DID. It was the equivalent of $750.00 per hour for my time dealing with cash, far more than I made manufacturing the product itself.

        On top of the extra income I made by ditching credit cards, my customers were delighted. People HATE THE BANKS and were glad to see I had dropped plastic. Maybe one customer in a thousand bitched about it.

        • socalbeachdude

          Handling cash and checks is a very expensive option for any merchant including the RISK OF LOSS on checks and the expense to handle and process cash and checks. Most people want to use credit or debit cards to get accurate records of their transactions and to get transactions processed cleanly and very quickly which both have enormous benefits.

          Personally, I have no interest in using cash or checks for anything and always pay my bills online via credit or EFT transactions. Frankly, I wouldn’t even consider doing business with any merchant who did not accept credit cards.

  • Braaaaaavvvvvooooo ! ! ! Observation leads us to the Truth. No what we believe in! A child might believe in Santa Claus, but some children are good in wathcing what is behind and they dare to tell their parents that they should forget about Santa. I have been insisting in inviting people to change their beliefs! What beliefs? Everything, or what they consider the most important ones! Our beliefs were brought upon us by adults, from the very moment that we were born. And adults are represented by greedy people, like the people that own The Federal Reserve! Parents impose the battle for survival in the hearts of the newborn. Everything is a battlefield on this earth, they say. In the world of business, it is called competition. In the world of organized religion it is called the battle of getting rid of being born in sin, to see how far we can get to evolve towards saintity, which is, of course impossible, because that would mean that we would be at the same level of Jesus of Nazareth, and whenever I say I Am God, people want to crucify me. They crucified God (The Son of God, if you will), and that is not a problem, because Jesus will take away their sins by only believing in Him (that’s just a belief)! But they won’t have any trouble in crucifuing me, because I say I Am God, because they won’t believe I Am The Son of God, the same way they didn’t believe that Jesus of Nazareth was The Son of God. So we must respect and obey, much to our disgrace, that the Federal Reserve (of course, the greedy people that own it) is above the presidency of the United States (respecting the US Constitution it would be “United”, but the Constitution is less and less respected, and therefore “United” States is a misnomer nowadays, not when it was created from the Confederate States). If some president is more “Human”, like John F. Kennedy, he can rest assured that he will be killed. I have a Statement from John F. Kennedy, where he said he would reveal a terrible boicot on the american people. He didn’t get there. Nobody likes anybody to say that He or She, or the people of the US are bad or dumn peoploe! So the majority denies the ruling people (Federal Reserve, The Presidency, elected in Good Faith, etc.) are bad people, the same way a child doesn’t dare to call their parents “Bad people”, even if they abuse drugs, hit them, etc., etc., etc. So american people don’t accept that there was a boicot, an invented Pearl Harbor event for the Military Industry (also people with great power over the general public, like the “religious people”, The Federal Reserve, The Education Institutions, The Government, etc., etc., etc.) to remain in power and some generals using the money to build golden WC’s in their restrooms, etc. Oliver Stone´s “The Untold History of The United States” is ignored. People of The World: If we continue doing what we have been doing, we are going directly into our forseen Destiny as described in Revelations, as predicted by Edgar Casey (he said Obama would be the last US President and he would trigger Nuclear War, which is imminent), or as predicted by Saint Malachy in The Prophecy of Popes (Pope Francies is the last one), or as predicted by Jesus of Nazareth, who said that even the Angels wouldn’t know the exact date… And we are going to do the same things we have been doing, unless we change our beliefs! For an assassin, a monk, a father, a president only does what he or she beliefs in. Action is preceeded by thinkink and by declaring. What you declare is very, very important. God said (declared): Let there be light, and there was light. The People of The World (without knowing, or being aware, of course) declare: Let there be darkness, and there is darkness. For if we practice greed, if we don’t realize that what we do to our brethren we do to ourselves, because We Are All One (not taught to us by adults. From our birth onwards, they tell us: Fight others, be better thatn others, there are better people on this world than others. But the US Constitution says: “We Are All Created Equal”). People of The World: Don’t trust what you have been told to trust: Don’t trust The Federal Reserve, Don’t trust The Military Establishment (they profit from the art of killing), Don’t trust your government, don’t trust anything that were taught to you, for everything that was told to you is just a belief, that was inherited from people that were born before that believed the same way. It is time for a real change.

    • JC Teecher

      You make some very good points, and Edgar Casey was a seeker of visions. Many of his visions have been “interpreted” very well, but some are also very wrong.

      If Obama is the last potus, we are in for some unbelieveable upheaval and destruction, in the not too distant future. I won’t say that this will not happen, but the prophetic signs and visitations, say otherwise.
      Whatever happens in the next two months, will determine if that scenario of no more potus leaders plays out, but if Trump becomes inaugurated on Jan 20th, then that interpretation will pass as bogus.

      We will soon see, as well as his vision of the Great Lakes becoming part of the oceans, and the division of North America, by water.

      • You are right. From what I know from my studies of The Truth, you (and hence a group or nation) can change Destiny, for God gave us Free Will, and that is no joke. We can change things, if we decide to do so. The only thing that matters is what always matters, day after day, second after second: we take decitions, we choose from many options. I think that Trump won, because there is a true tendency to change the path we have taken. Otherwise The Elite would have had their way with Hillary Clinton. Nevertheless this tendency has to be reinforced second by second. Nothing happens by chance. Our world is the materialization of seven billion minds thinking, which creates a tremendous amount of energy shaping our reality. If, saying it simple, a big chunk of us earthlings think, talk and act as one unit (the problem is lying: think something, say something different, and act in a kind of act-react manner, like a robot or computer game, depending on the button that is pushed) we could create the “critic mass”. Think of love and understanding. Think of others being a mirror of yourself (What you Do To The Smallest Of My Brethren, You Do To Me), think of Unity, instead of fighting evel people, that are less than you (“we sere all created equal” made The Union). It is time to wake up and be aware that God’s greatest promise is true: We are the creators of our reality, for we are made to the Image of God: We can say: Let there be war, for war is good for the military establishment, and there will be war. We can say: Let there be love and understanding (a meditation experiment was made in Washington, were criminality diminished substantially, just because a group of meditators, nothing else. I ask myself: Why are we not willing to see what we are seeing?), and there will be love and understanding, for God Is All of Us (in the whole Universe) As One.

  • Cal

    In 1965 silver was removed from dimes and quarters completely, partially half-dollars. By 1970 all silver gone.

    • jsmith

      Yeah, and didn’t LBJ say that silver and gold was too valuable to use in coins! Ironically laughing out loud, that was the whole purpose of coins since 3 thousand years ago: To have value!

  • can u say stagflation

    trumps needs the fed,printing massive amounts of cash is the only option for a nation that produces virtually nothin but welfare checks and cruise missles,neither adds any real intrisinc value,so obviously the only option is to print like it’s 1999

    • socalbeachdude

      The Federal Reserve is certainly NOT “printing massive amounts of cash” at all and is the most conservative central bank in the world relative to the size of the US economy. The Federal Reserve DOES NOT GIVE ANY MONEY PRINTED TO ANYONE INCLUDING THE US GOVERNMENT and it is up to the US government to either collect taxes or borrow money to cover its spending which is currently running more than $1.4 trillion above the amount it took in via tax revenues for Fiscal 2016.

  • Leif Erickson

    I could be mistaken, but I think Congress is the only government body that could repeal The Federal Reserve Act of 1913. Good luck with that. Trump can push and endorse the elimination of the Federal Reserve Bank, but Congress has to get on board. Plus that would leave only the gold standard as an option or let the politics of the Treasury Department to handle the money. Might work after a major upheaval on the already fragile global economies. Might not.

    Trump could give the go ahead to the U.S. Treasury to issue gold or silver backed notes like Kennedy to compete against the Fed notes, but again, global markets would be left in chaos. A chance worth taking? Dunno.

    • socalbeachdude

      Correct. The Federal Reserve was created 103 years ago by an act of Congress known as the Federal Reserve Act and the final section reserves the right for Congress to amend or repeal the Federal Reserve Act. No President can alter or repeal the Act.

  • Sailcat

    JFK and Ghadafi, among others, were killed for this particular monetary approach. How’s that gonna work for DJT?

    • David Kramer

      See my comment below about JFK, those Silver Certificates, and ending the Fed. He was not going to end the Fed—and those Silver Certificates were
      used to retire the remaining silver held by the Treasury in order to replace them completely with FRNs.

      • Sailcat

        I don’t think silver was the issue. It seems that giving the Treasury the authority to issue notes of any sort was perceived as a broadside against the Fed, diluting their authority. Where would it go next?

        • David Kramer

          Did you read ALL of the citations that I posted? What JFK did had NOTHING TO DO with going against the Fed. What he did was pro Fed.

          • socalbeachdude

            Correct, David.

        • socalbeachdude

          Nope. All that EO 11110 dealt with was the Silver Certificates as part of the US currency and nothing else.

      • socalbeachdude

        Executive Order 11110 had NOTHING WHATSOEVER to do with the Federal Reserve. I would suggest you read about and attempt to comprehend what that very limited Executive Order 11110 was specifically about. All it dealt with was the issuance of further US Dollar SILVER CERTIFICATES and nothing else at all.

        The only thing JFK signed in relationship to US dollars in Silver Certificate form was Executive Order 11110 was issued by U.S. President John F. Kennedy on June 4, 1963 and which was not in any way consequential at all.

        This executive order delegated to the Secretary of the Treasury the president’s authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act, as amended by the Gold Reserve Act. The order allowed the Secretary to issue silver certificates, if any were needed, during the transition period under President Kennedy’s plan to eliminate Silver Certificates and use Federal Reserve Notes.

        http://en.wikipedia.org/wiki/Executive_Order_11110

    • socalbeachdude

      False.

  • JC Teecher

    Once again, Michael has brought forth the truth as to the state of our USSAG conundrum. It is shockingly apparent that the underworld/shadow gov has been in play for over a hundred years.

    The awake and wise have seen through their smoke and mirrors, many years ago, and we know, without divine intervention, we are going to see the results of all that has been put into place.

    Is Trump the reason so much is “coming out” in the secretive goings on in gov, or is he the catalyst that brings forth the impending doom for sheeple?

    Time will tell, but I see Trump as the pause in their plans, to allow those with eyes to see and ears to hear, to get their proverbial ducks in a row.
    The masses say to themselves, “we are rich in gold and silver, and material things, so therefore we need not God for our wealth and truth.”

    Those that live by that worldism mentality of wealth, cannot see the bigger picture, that those that die with the most “stuff” do not win.
    They live in a delusional dichotomy of being on the winning side. The winning side sees worldly wealth as a distraction of reality of what is coming.
    Wealth and riches of the world will soon become their stumbling blocks, so they can’t see the spiritual need in their lives.

    The Laodicean church is caught up in this destructive ideology, so they will forfeit their God given grace of being part of the First Resurrection.
    When the dust settles, those that did not have a chance to learn truth, will have an opportunity to learn truth, and find salvation during the Millennium, but that salvation will not come into play in their lives until the 1000 years is played out, and they go thru a trial by fire with the release of Satan, for a time.

    Sadly, they will not have peace and comfort, for 1000 years, until that comes about. How long is a thousand years? A hundred years without true salvation and resurrection into a life eternal, is too long for those seeking the face of Jesus Christ, but 1000 years, will be a sad time to see those that made the commitment, already rejoicing in His presence.

    Just sayin’.

    • watchmannonthewall

      “Time will tell, but I see Trump as the pause in their plans, to allow those with eyes to see and ears to hear, to get their proverbial ducks in a row.”
      Been thinking a lot about this. I do believe you are correct. Sort of like when Rome surrounded Jerusalem in 70 AD and then Titus withdrew allowing those who knew the prophesy to escape. Is this the period of the withdrawl, the final warning? If so, it won”t last long! I sincerely doubt it is the 1st act of positive change.

  • David Kramer

    See my comment above about JFK, those Silver Certificates, and ending the Fed. He was not going to end the Fed—and those Silver Certificates were used to retire the remaining silver held by the Treasury in order to replace them completely with FRNs.

  • David Kramer

    See my comment above about JFK, those Silver Certificates, and ending the Fed. He was not going to end the Fed—and those Silver Certificates were used to retire the remaining silver held by the Treasury in order to replace them completely with FRNs.

    • retired22

      You believe that,…you are capable of believing anything!

      • socalbeachdude

        What David stated is 100% correct and fully confirmed by all of the evidence including the text of Executive Order 11110 itself. Go read it.

        • Da_Neutral_Observer

          Again, the information you are citing is essentially propaganda designed to mask the true intent of the decisions being made. The Warren Commission already tried that with the “silver bullet” theory. Don’t you government apologist types ever give up?!

  • df NJ

    “The world’s richest family just became $3.2 billion poorer after Wal-Mart Stores Inc.’s brick-and-mortar sales fell short of expectations last quarter. Shares of the retailer dropped 3.1 percent on Thursday, leaving Alice, Christy, Jim, Lukas and Rob Walton with a combined $119 billion, according to the Bloomberg Billionaires Index. The five Waltons remain $28 billion richer than the heirs to the Mars Inc. candy fortune, where John, Jacqueline and the estate of Forrest Mars share $92 billion.

    $92 + $28 = $120 billion = $12,000 million = $12,000,000,000 dollars

    • ALWAYSTOMORROW

      You may want to change your last number to 120,000,000,000. You are missing a zero.

      • df NJ

        Higher math. It might as well be infinity. It’s the same number to me.

    • socalbeachdude

      Well, that’s just fluctuations in an extremely overpriced equities (stock) market and has nothing whatsoever to do with the Federal Reserve.

  • daplayer

    watch out because the ending of the federal reserve as well as the ECB and the rest of central banks as we know them today, will not be something to help people or society but to subjugate it even more instead, with the creation of an economic system based on digital money that will allow not only a total control of economy but also dissidents and personal information.. it will be one of the last steps to the end of freedom and to the achievement of the world government..

    • socalbeachdude

      Nearly all money today is ELECTRONIC MONEY and that will be increasingly the case in the future.

      • daplayer

        of course today’s money it’s electronic money, in fact 96% of the money it’s electronic..it’s been a long way for these “shades” to pass from real money to electronic money and we now are in the final step..all this prefabricated crisis was all about that..but there’s a big difference between today’s electronic money, where you still have the freedom to pay with coins or bills or to withdraw your money from your account, and the future electronic money like bitcoin or what ever future digital money where 100% of physical money will disappear..that will be the end of freedom and the beginning of the world government..

        • socalbeachdude

          Most transactions are naturally shifting to electronic funds which is all that is happening with electronic money. Actual printed money will always remain for the foreseeable future here in the USA.

  • Alex

    Shut Down The Federal Reserve And Start Issuing Debt-Free Money? Not so fast. What would be a collateral for these debt-free money if everything is owned by the FED and Government has no say over it? Who will pay the accumulated unpayable debts? Remember Executive Order 11110 issued by U.S. President John F. Kennedy on June 4, 1963? Remember so called Nightmare on Elm Street? Do you really think that the FED will sit and watch?

    • socalbeachdude

      Executive Order 11110 had NOTHING WHATSOEVER to do with the Federal Reserve. I would suggest you read about and attempt to comprehend what that very limited Executive Order 11110 was specifically about. All it dealt with was the issuance of further US Dollar SILVER CERTIFICATES and nothing else at all.

      The only thing JFK signed in relationship to US dollars in Silver Certificate form was Executive Order 11110 was issued by U.S. President John F. Kennedy on June 4, 1963 and which was not in any way consequential at all.

      This executive order delegated to the Secretary of the Treasury the president’s authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act, as amended by the Gold Reserve Act. The order allowed the Secretary to issue silver certificates, if any were needed, during the transition period under President Kennedy’s plan to eliminate Silver Certificates and use Federal Reserve Notes.

      http://en.wikipedia.org/wiki/Executive_Order_11110

      The Federal Reserve has done an absolutely superb job of managing the money supply and monetary policy in the US over the past 100+ years during which time the US has become the biggest economy in the world and the wealthiest country in the world with over $180 trillion in assets which are offset by only about $60 trillion in debt resulting in around $120 trillion in net aggregate assets in the US..

      Without the Federal Reserve and its monetary policy and influence over the past, the US would still be the irrelevant backwater banana republic that it was back in 1913 as opposed to the economic superpower of the world – by far – with the world’s reserve currency used in 85% of all global transactions and the wealthiest nation in the world with over $180 trillion in assets.

      The Federal Reserve has an excellent web site which explains all of the operations, functions, and details about the Federal Reserve and the Federal Reserve Act and anyone wanting to learn more about the Federal Reserve can peruse all of that information including their fully audited and highly detailed independently audited annual financial reports as well as a wealth of other information and statistics at their excellent web site at:

      http://www.FederalReserve.gov

  • Stuey

    Where is the Federal Reserve lover and defender socalbeachdude, why aren’t you here slamming Michael for this article????

    • socalbeachdude

      I would suggest that you learn about the Federal Reserve as you appear to not even begin to comprehend what it is and what it does.

      The Federal Reserve does not owe a single penny of the US government debt and has not run up a single penny of the US government debt. That was all been run up by Congress with $1 trillion having been run up from 1776 until 1981 and the other $18.5+ trillion having been run up from 1981 until present. And that debt is increasing at an amount of around $1.4 trillion a year and is entirely the responsibility of Congress which represents the American citizens.

      The current interest payments on the accumulated US government debt is around $250 billion a year and is about 6% of the annual $4 trillion federal expenditures but will be increasing rather substantially as yields (interest rates) rise on US Treasuries.

      The Federal Reserve only holds (owns) about $2.5 trillion of the $19.5 trillion in outstanding US government debt and that debt is essentially interest free to the US government as the Federal Reserve rebates 94% of its profits each year to the US Treasury – as it has always done since its inception) and that now amounts to around $100 billion per year in revenues to the US government.

      None of that debt was ever “monetized” as the Federal Reserve purchased EXISTING DEBT from its member banks as part of QE and none of the purchase funds went to the US government but rather are sitting in the excess reserves and primary reserves accounts of those banks inside the Federal Reserve.

      • Stuey

        So what you got out of this article is that Michael thinks that the Federal Reserve owes all or part of the US debt?????? Really?? Not much on reading comprehension, huh.

        • socalbeachdude

          The Federal Reserve DOES NOT OWE A SINGLE PENNY OF THE US GOVERNMENT DEBT.

          The situation is exactly the opposite where the Federal Reserve OWNS ABOUT $2.5 TRILLION OF THE US GOVERNMENT DEBT which is denominated in US TREASURIES for which there are a total of more than $19.5 trillion outstanding.

          The Federal Reserve amount of that ownership is around 12.8% and the interest on those to the US government is ESSENTIALLY INTEREST FREE as the Federal Reserve rebates more than 94% of its annual profits each year to the US Treasury making it the single largest entity contributor to US government revenues which offsets the federal debt by that much year year.

          The Federal Reserve is a separate and distinct entity apart from the federal government and US Treasury and is a quasi-public-private institution established and controlled by Congress and is not part of the federal government and its US Treasury.

          What is so difficult for you to understand about those simple and very straightforward facts?

          • Stuey

            I agree the Federal Reserve doesn’t owe any amount of the US debt. The article never said that it did.

          • socalbeachdude

            Good. You’re making progress!

          • Stuey

            No, you are.

          • Stuey

            So do you agree with the article that the Federal Reserve should be shut down?

          • socalbeachdude

            Obviously not. The Federal Reserve provides a huge array of vital financial and banking services in the US including most importantly interbank clearing of all banking transactions without which the banking system would cease to function, as well as regulatory oversight and a host of other key functions.

  • querado

    The constitution does not allow the Federal Government to print money, only to coin it. Paper money used to be issued by private banks, in exchange for coin deposits. The debt moniker on paper money was used to get around the constitutional limits by defining the US dollar notes as being a debt instrument.

    Years ago, back in 2008 we heard the predictions that fed money printing would lead to inflation. It hasn’t happened, leaving many gold bugs scratching their heads. Thats because most of these people do not understand economics. A depression is typified by low monetary velocity and flow volume. This leads to less demand and therefore deflation as sellers reduce their prices to try to attract customers. The deflationary tendancies of depression creates more room to increase the money supply by reducing interest rates to raise demand levels, making it much cheaper to get loans will put money into the economy. This can be done without causing inflation because inflation is a product of a change in the supply demand ratio, NOT MONEY PRINTING. Since demand is already going down in a depression, when more money is added to the economy, if done in specific amounts, it will not cause inflation over normal levels, because demand is already so low that the new money will raise demand levels back up to where they were before. What would cause inflation is raising demand levels way past where they were before the depression. But that is not what central banks do, the goal of monetary policy is to raise demand levels back to pre-depression levels, which would actually maintain the pre-depression inflation level. Inflation of about 1-2% per year is targeted.

    As demand increases, you might ask, well with all of this money floating out there, what would stop overinflation since there is much more money around than before the recession with a similar supply potential. The central banks as a depression ends will mop up the access money by increasing interest rates gradually and carefully as economic growth picks up, pulling it out of the money supply.

    There are two tools which have been used to increase money supply, one which is to encourage banks to lend out more money from the banks reserves, which does not increase the actual amount of money that exists, the monetary base. The other is to increase the monetary base itself. The central banks do not do both of these things without a solid plan of reversing it to prevent inflation should demand levels begin to increase. The central banks will pull back in the extra printed money when loans are repaid to private banks, the money will go back to the central banks. The process is more technical than that, but thats the basic gist of it.

    Do not think that the central banks just printed a bunch of money threw it out there, without any idea of how to get the money back out of the economy before inflation sets in as demand levels go back up.

    Quite honestly, Central banks are not the cuase of our current economic problems, if anythng they kept us out of a much worse deep depression. From the advent of modern monetary policy theory in the 1930s by Keynes, we have had a pretty good run of avoiding major depressions. These policies were used during the growth period of 50s and 60s and 80s and 90s.

    I am actually a conservative when it comes to social issues. If you want to fix the economy what I would suggest is to encourage American citizens to have larger families with per child tax breaks specifically targeted at middle class families which would help our economy grow by creating internal population growth and raise the birth rate. We should stop all immigration and what we should do us use more resources to create more incentives for americans to have children. To fix broken social security, I am for privatisation, but what we should do is we should require children to contribute 10% of income to $50,000 directly to a private Retirement Savings account and HSA for their parents. We pay for our parents retirement anyway with taxes, so instead of putting the money into a corrupt government bureaucracy, why dont we just give the money directly to our own parents. This would fix the moral hazard with social security by giving parents direct incentive to have more children, since the more children they have the more money goes into their RSA and HSA, this ensures we have plenty of children in upcoming generations to be able to feed into the economy. The adult offspring funded parent RSA/HSAs would strengthen and reinforce family values, create a large family culture of raising many children in this country again, leading to a healthier society. It also sidesteps the “unwinding” problem of other social security privatization schemes, since it mimics the working age group->retirement group monetary flow of the current system, but the new system just gets rid of the governmental program and keeps the money in the families where they belong, adult children are required to give their FICA contribution directly to their own parents rather than to the government. This means the problem of how to pay social security to current retirees is far , far less than with other privatization schemes.

    I just dont think monetary policy is really a conservative-liberal thing.

    • socalbeachdude

      Excellent analysis!

    • Larry Rhodes

      I somewhat agree but I do not want ANY “untouchable” organizations in MY country!!! PERIOD!!! And what about the people who never marry or the people who cant have children??? I do agree about no immigration!!! I am tired of it!!! We have had way to much of it!!! It should be by invitation only!!! Like for scientists and doctors and people like that who can actually make a contribution to our country!!! Like I said I do somewhat agree with you but your idea has holes in it!!!

  • Defiant

    I love Trump…and I have a lot of faith in his ability to straighten things out in this country. However, I don’t see him closing down the FED. I hope he does…but he’s never even mentioned it as one of his issues.

    • jrm55

      There’s other things he has not brought up, like arresting Obama for treason when his term is up. Some things are better left unsaid and just do them behind the scenes.

      • Larry Rhodes

        Never let the enemy see you coming or know your plan of action!!! That would be suicide!!!

  • seekless

    bLAME the fed

  • seekless

    The laugh never ends

  • seekless

    Depressions are good

  • seekless

    We need them

  • seekless

    hell why not

  • seekless

    Trash gets trashier

  • seekless

    420

  • seekless

    For a good read

  • seekless

    Try the book

  • seekless

    do not blame

  • seekless

    the fed

  • seekless

    the mantra

  • seekless

    does not end

  • seekless

    Maybe we should get rid

  • seekless

    of all currency

  • seekless

    of stores too

  • seekless

    lets have barter and trade

  • seekless

    like in Alaska

  • Tom Kauser

    You cancel the debt by ” buying it back” or you could transfer the balance sheet into social security and spend it back into the economy or have the son in law become chairman and print………your way out!

    • socalbeachdude

      No debt can be “cancelled” at all in such a manner and the repercussions would be extreme as the flip side of debt is that it is held as an ASSET by its owners.

  • abinico

    The problem with shutting down the current system is that so many people, including me, have done very well. I am not about to support any notion of shutting down the FED to appease some nutjobs with weird monetary ideas,

  • socalbeachdude

    The Federal Reserve system does not cost the US government or taxpayers a single penny and is one of the best and most conservative central banks in the world and provides a vast array of services with the most important being interbank clearance of transactions through its 12 regional banks without which the entire banking system in the US could not even function.

  • socalbeachdude

    What utter nonsense. I would suggest you learn about the Federal Reserve and what it is and what it does.

  • socalbeachdude

    The Federal Reserve does not charge interest to the US Treasury other than the interest it receives on US Treasuries owned by the Federal Reserve and then it rebates 94% of its total annual profits to the US Treasury making those $2.5 trillion or so of US Treasuries owned by the Federal Reserve entirely INTEREST FREE.

    The Federal Reserve does not cost US taxpayers or the US Treasury a single penny and contributes nearly $100 billion a year to the US Treasury which significantly helps offset the federal deficit each and every year.

  • socalbeachdude

    The Federal Reserve does not cost the US government and taxpayers a single penny and in fact is the LARGEST SINGLE PAYER OF REVENUES TO THE US GOVERNMENT each year. REBATES 100% OF ITS ANNUAL PROFITS TO THE US TREASURY after paying its member bank shareholders a modest annual 6% dividend. The Federal Reserve operates essentially as a NOT-FOR-PROFIT ENTITY and rebates 94% of its annual profits to the US Treasury and that has always been the case. The Federal Reserve is now the largest single entity contributor to US government revenues and rebates about $100 billion a year to the US Treasury.

    Depositors put money in banks for the purposes of using that money in their demand deposit (checking) accounts and for the purposes of EARNING INTEREST MONEY on their time deposit (savings) accounts.

    ALL MONEY HAS A TIME VALUE AND THAT TIME VALUE IS CALLED INTEREST and that has always been the case with money.

    There are 3 components to interest rates.

    Interest rates are comprised of:

    1) real rate (typically around 3% historically)

    2) inflation adjustment (now correctly at zero)

    3) risk of default (now rising astronomically)

    The risk of DEFAULT is higher than ever and will continue to rise.

    All currencies including the US dollar are backed by the current and future labor and productivity of their issuing government as well as the current and future assets of that country and its citizens.

    Who owns the Federal Reserve?

    http://www.federalreserve.gov/faqs/about_14986.htm

    In summary, The member banks of the Federal Reserve System own 100% of the shares of the Federal Reserve.

    The Federal Reserve does not loan money directly to banks at 0% and never has. The lowest rate the Federal Reserve has ever offered money to banks is 0.75% through the Federal Discount Window at the Federal Discount Rate of 0.75% which was 300% of the rate at which banks could borrow money on an overnight basis from each other through the Federal Funds Rate.

    Moreover, in either case those borrowings were always 1) FULLY COLLATERALIZED, 2) for VERY SHORT TERMS (typically overnight), and 3) COULD ONLY BE USED TO CLEAR TRANSACTION IMBALANCES IN THE FEDERAL RESERVE SYSTEM consisting of around 6,200 banks.

  • socalbeachdude

    Executive Order 11110 had NOTHING WHATSOEVER to do with the Federal Reserve. I would suggest you read about and attempt to comprehend what that very limited Executive Order 11110 was specifically about. All it dealt with was the issuance of further US Dollar SILVER CERTIFICATES and nothing else at all.

    The only thing JFK signed in relationship to US dollars in Silver Certificate form was Executive Order 11110 was issued by U.S. President John F. Kennedy on June 4, 1963 and which was not in any way consequential at all.

    This executive order delegated to the Secretary of the Treasury the president’s authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act, as amended by the Gold Reserve Act. The order allowed the Secretary to issue silver certificates, if any were needed, during the transition period under President Kennedy’s plan to eliminate Silver Certificates and use Federal Reserve Notes.

    http://en.wikipedia.org/wiki/Executive_Order_11110

  • socalbeachdude

    Once again, correct, David.

  • socalbeachdude

    False. There is certainly no interest or intent to shut down the Federal Reserve – without which the US banking system would cease to function – by anyone on the Trump Team and the Executive Branch has no power whatsoever in this regard as the Federal Reserve was created by an Act of Congress and that act can only be amended or repealed by Congress itself.

    • Dana Bohanske

      Socalbeachdude~ Thank you for your comment, but apparently you did not listen to my show because what you’re saying does not line-up with what I said that I brought out on my show. I did not say the Donald Trump Team as President-Elect, I said Donald Trump, since 2009. If you would really like to know what I am talking about and be able to comment appropriately you must take the time to listen to my show before you comment on what I’ve said. Shalom~

      • socalbeachdude

        I haven’t got the slightest clue what you are talking about – AND OBVIOUSLY NEITHER DO YOU – based on your nonsensical comment. Start dealing with ACTUAL REALITY rather than the bizarre delusions in your head regarding the Federal Reserve System.

  • socalbeachdude

    Correct.

  • socalbeachdude

    No President of the USA can do anything whatsoever to “shut down the Federal Reserve.” It was created by an ACT OF CONGRESS and that act can only be modified or repealed by Congress itself.

  • socalbeachdude

    There was NO DIFFERENCE WHATSOEVER in actual function between the red seal United States Notes and the green seal Federal Reserve Notes. The RED SEAL on the United States Notes versions of US Dollars was very briefly used in the 1960s before being totally withdrawn but that was never used on $1 US dollar bills but rather only on $5 bills and higher.

  • socalbeachdude

    The Federal Reserve has been very conservative in its creation of money (unlike the People’s Bank of China which is the most egregious money printer in the world by far) and its balance sheet is now only about$4.4 trillion while supporting the largest economy in the world.

    The Federal Reserve has done an absolutely superb job of managing the money supply and monetary policy in the US over the past 101 years during which time the US has become the biggest economy in the world and the wealthiest country in the world with over $180 trillion in assets which are offset by only about $60 trillion in debt resulting in around $120 trillion in net aggregate assets in the US..

    Without the Federal Reserve and its monetary policy and influence over the past, the US would still be the irrelevant backwater banana republic that it was back in 1913 as opposed to the economic superpower of the world – by far – with the world’s reserve currency used in 85% of all global transactions and the wealthiest nation in the world with over $180 trillion in assets.

    The Federal Reserve has an excellent web site which explains all of the operations, functions, and details about the Federal Reserve and the Federal Reserve Act and anyone wanting to learn more about the Federal Reserve can peruse all of that information including their fully audited and highly detailed independently audited annual financial reports as well as a wealth of other information and statistics at:

    http://www.FederalReserve.gov

    The U.S. Federal Reserve Bank – How it Works, and What it Does – Money, Dollars, & Currency

    http://www.youtube.com/watch?v=y1OJlJ9COg0

  • socalbeachdude

    Opinion: Donald Trump simply doesn’t understand the Federal Reserve

    The Federal Reserve is, in fact, 12 regional banks that collectively operate as the nation’s central banking system. There is no single bank or lender at the top, which both decentralizes power to prevent manipulation and localizes the work of each regional bank to monitor the needs of its “local” businesses with more nuance. The Fed is like the media — a collective body made up of many independent actors. But also like the media, that doesn’t stop wing nuts from claiming that all these disparate parts are conspiring against them.

    The main governing body to oversee the Fed system is the Federal Reserve Board of Governors. This body is made up of seven members appointed by the president of the U.S. and confirmed by the Senate. But after that, Fed governors are appointed to 14-year terms. This is, once again, similar to the independence provided to a Supreme Court justice and a way for policy makers to stay true to their principles and training instead of beholden to the political whims of the day.

    Those who deride the Fed these days are quick to say it’s “punishing savers.” But if the Fed has no loyalty to savers, it’s because it’s not supposed to. The purpose of the Fed, according to most economists, is the “dual mandate” created in 1977 via an amendment to the Federal Reserve Act. That amendment dictates that the Fed “promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates.” That balance between modest inflation and low unemployment is, in essence, the purpose of the Fed — not to make sure your savings account yields 5%. Much of the focus since the financial crisis has been on the “maximum employment” part of that mandate, which has meant lower interest rates for savers, but the Fed is not doing that capriciously.

    http://www.marketwatch.com/story/donald-trump-simply-doesnt-understand-the-federal-reserve-2016-09-27

  • socalbeachdude

    The total of all US currency (Federal Reserve Notes) in circulation is around $1.3 trillion based on the H.3 report from the Federal Reserve.

    The total M1 money supply in the US is only $3 trillion and only $1.3 trillion of that is printed currency. This is confirmed by the Federal Reserve H.3 report:

    http://www.federalreserve.gov/releases/h3/current/

  • socalbeachdude

    ALEX BRUMMER: New president Donald Trump gets chance to reshape Federal Reserve

    Janet Yellen’s current term ends in 2018 so Trump will have the chance to pick a new chairman. In the interim the White House will have the chance to fill two vacancies and potentially a third.

    http://www.dailymail.co.uk/money/comment/article-3921108/ALEX-BRUMMER-Trump-gets-chance-reshape-Federal-Reserve.html

  • socalbeachdude

    The equities (stock) market consists of only 30 stocks on the Dow (DJIA 30) out of around 7,000 stocks listed in the US and the stock markets including the main indices (Dow, S&P 500, and NASDAQ) are headed for MASSIVE PLUNGES and in, in fact, there biggest crashes in history dead ahead as earnings continue to plummet and as interest rates continue to soar.

    The transitory blip up in the stock markets are going to last about two nanoseconds before crashing like bonds are ready doing with record plunges.

    Federal deficits and debt may get even worse with Donald Trump as President IF he increases federal spending and cuts taxes. Bond are already PLUMMETING with massive losses this week as MUCH HIGHER YIELDS (INTEREST RATES) are priced in due to the expectation of higher federal spending and deficits and greater inflation. Bond prices are, of course, inverse to yields.

    Bonds plunge $1 trillion this week as Trump seen game changer

    http://www.bloomberg.com/news/articles/2016-11-11/bonds-tumble-by-1-trillion-this-week-on-trump-inflation-concern

    The US dollar is also skyrocketing and is now over 100 on the DXY (Dollar Basket) and will likely go much higher than 100 and keep on skyrocketing upwards which significantly reduces corporate earnings for the US multinationals.

  • socalbeachdude

    Absolutely false and an utterly bogus MYTH.

  • Mohammed Cohen

    Be careful of what you ask for! Kennedy’s days were numbered when he raised his highly private national security concern about Israel having atomic bomb. Look how long it took the Rothchild clans and their minions! So Trumps is not such a huge concern to these world power black hats to easily remove without much of any serious concerns! Besides whoever controls the money and the media controls their docile masses!

    • socalbeachdude

      Absolutely false. What utter nonsense.

  • socalbeachdude

    The Federal Reserve is not even part of the problem with the massive debt issues in the USA where more than $64 trillion of debt has been run up across all sectors of the US economy. The problem is the widespread DESIRE TO LIVE FAR BEYOND PRESENT MEANS coupled with the TOTAL DISREGARD OF RISK AND COST IN DOING SO.

    • Larry Rhodes

      The BIGGEST problem with the massive debt issue is people like Bush and Obama and a Senate and a Congress that just don’t give a damn about We The People!!! They have proved it time and time again!!!! This is what got Trump elected!!! He is not a career politician!!! He convinced We The People, including me, that he cares about us and he sees the problems and is willing to break traditions and fix the problems which includes some good old fashion house cleaning!!! He is going after the corruption and that includes the FED!!! I am behind him 100 percent!!! I have been praying for someone like him for 20yrs and here he is!!! If we all stick together and support him, he just might be able to pull this off and actually MAKE AMERICA GREAT AGAIN!!!!

      • socalbeachdude

        All of the US debt has been created by CONGRESS which is composed of the REPRESENTATIVES OF THE PEOPLE and is the only entity which can authorize federal debt.

        The Federal Reserve did not create one single penny of the $19.5+ trillion in federal debt.

        The problem is THE PEOPLE in the US who want to spend vastly more than they pay in taxes and don’t want to be sent an invoice for the difference and that is what is headed for a major collision with financial reality. It took 200+ years to run up $1 trillion in debt from 1776 until 1981 and then only 35 years to increase that by more than $18.5 trillion as a result of GROSSLY PROFLIGATE SPENDING BY CONGRESS which directly represents “the people” of America.

        • Larry Rhodes

          I agree with every word you said but if you think that the fed has had nothing at all to do with our debt I have some beautiful ocean front property here in Tennessee I would like to sell you!!! Consider them the accountants for the government and they have cooked the books creating much more debt than there should be!!! They just as responsible as those irresponsible politicians who keep voting to increase the debt!!! But my biggest problem with them is that they are “untouchable” and we cant have that in an honest government!!! It is bad for business and morale!!!

          • socalbeachdude

            Once again, the Federal Reserve had NOTHING AT ALL TO DO WITH RUNNING UP A SINGLE PENNY OF THE US GOVERNMENT DEBT which is now over $19.5 trillion and rose by more than $1.4 trillion in Fiscal 2016 ended on 09/30/2016.

          • Larry Rhodes

            DOCTORED BOOKS!!!!!!!!!!!!!!!!!!!!!!!!!!

          • socalbeachdude

            Absolutely false.

  • J B

    Why it will never happen ….
    The sweJ will loose total control of Umerica and it’s people.

    Jackie Kennedy said: they have killed my husband, she must have known who “they” were.

  • richard lavigne

    Urgent to have an audit on Fort Knox, etc….Is there any gold, what the total US gold reserve.
    The President has to know.

    • socalbeachdude

      The Federal Reserve has NOTHING WHATSOEVER to do with the US Treasury Bullion Depository in Fort Knox, Kentucky located across the street from the Army Base called Fort Knox. That gold is OWNED BY THE US TREASURY.

      The US government owns approximately 8,200 metric tonnes of gold which is managed by the US Treasury and about 4,600 metric tonnes are stored at the US Mint Bullion Depository across the street from Fort Knox in Kentucky with the rest being stored at various US Mints around the country. The total value of that gold is only around $11 billion based on the current US government official price of $42.22 per ounce which is how it is reported on every month by the US Treasury at:

      http://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm

      Even at the current market price of $1,208 per ounce for gold the total value of the entire 8,200 metric tonnes of gold owned by the US Treasury would be less than $350 billion which is equivalent to about 25% of the Fiscal 2016 federal government deficit of $1.4 trillion and equal to about 1.8% of the current outstanding federal debt of more than $19.5 trillion.

  • georgethorvat

    I use to have one of those ten dollar bills that JFK issued but my son who was a teenager at the time did what all teenagers do and pilfered it not knowing the significance of the bill. It’s also my understanding that LBJ’s first order of business after he had JFK killed was to order that all banks were to collect all of those ten dollar bills and to turn them in to the FBI whenever one came there way the same way they do with counterfeit bills.other than the counterfeit bills that the Fed prints every day.

    • socalbeachdude

      You obviously have a number of severe delusions.

      • georgethorvat

        Thank you for bringing that to my attention. We need more people like you who have a fantastic wealth of experience and knowledge to correct the rest of us and to draw our attention to our shortcomings. May God bless and keep you steadfast in your self appointed mission to correct the rest of us.

        • socalbeachdude

          I would suggest you learn about the Federal Reserve at:

          http://www.FederalReserve.gov

          • georgethorvat

            I would suggest that you go out and lie in the sun on the beach a little longer.

  • socalbeachdude

    Nearly everyone from 100 years ago is now dead and they were paid a tiny miniscule fraction of what people are paid today.

    As to the value of the US dollar over the past 100 years…

    No, the dollar did NOT really lose 95% of its value since 1913

    Let us take at the period from 1913-2006, where we have complete data. So what do they mean, when they say the dollar lost 95.1% of its value in those 93 years? Essentially, an average good/service that cost $1 in 2006, used to be priced at 4.9 cents in 1913. In other words, the average price level of goods/services increased by 1930% since 1913. True, but guess what, average earned income increased by 6560% during the same time period. Average earned income rose from $740/yr in 1913 to $49,300/yr in 2006. Adjusting for inflation, $740/yr in 1913 is $15,000/yr in 2006 dollars. Average incomes, not only kept pace, but beat price inflation by 230%.

    So does it make any sense all to say the dollar lost value? In reality, the REAL purchasing power of the average American, has increased by 230% in the past century. Sure, prices were cheap in 1913, but $740/yr doesn’t buy you a whole lot, not anymore than 15,000/yr today.

    http://realfactbias.blogspot.com/2012/02/no-dollar-did-not-really-lose-95-of-its.html

  • socalbeachdude

    Huh?

  • socalbeachdude

    The Federal Reserve ONLY SETS 3 INTEREST RATES and none of those 3 have anything at all to do with employment, inflation, or other interest rates that matter in the US economy as all interest rates that do matter in the US economy are keyed off the yields (interest rates) set in the nearly $13 trillion a year US Treasuries markets.

    The only 3 rates that the Federal Reserve is involved with setting are:

    1) Federal Discount Rate – currently 1.00%

    2) Federal Funds Rate (which it influences) – currently in the range of 0.25% to 0.50%

    3) Federal Reserve IOER (Interest On Excess Reserves) – currently 0.50%

    The IOER (Interest On Excess Reserves) interest rate does have an immediate beneficial impact for banks as it is the interest paid to banks on their excess reserves accounts inside the Federal Reserve and those accounts now have more than $2.5+ trillion sitting in them, and banks were very fortunate to see the interest they received on those DOUBLE on December 16, 2016 from 0.25% to 0.50% and are urging the Federal Reserve to get that increased again by at least 0.25% to 0.50% without any further dawdling or delay as banks need increased income to help profitability this year.

  • socalbeachdude

    The Federal Reserve does not “auction off US Treasury bonds” at all. That process is done DIRECTLY BY THE US TREASURY and their group of about 25 PRIMARY DEALERS and has nothing to do with the Federal Reserve. Each year, the Federal Reserve purchases less than 8% of the newly issued US Treasuries and only holds about 12.8% of the more than $19.5 trillion in outstanding US Treasuries.

    The largest single holder (owner) of US Treasuries is the US government itself through its various agencies with the largest being the Social Security and Medicare Trust Funds which are required by federal law to only “invest” in a special class of US Treasuries. The remaining balance of around $13.5 trillion of the $19.5 trillion of US Treasuries is classified as “public debt” of the US government.

    For more information about US Treasuries including bonds, bills, notes, and TIPS and how US Treasuries work and are sold, see:

    http://www.TreasuryDirect.gov

  • socalbeachdude

    A number of folks commenting here apparently do not understand that the Federal Reserve REBATES 94% OF ITS ANNUAL PROFITS each year to the US Treasury which makes the interest on the $2.5 trillion or so of US Treasuries (government debt) owned by the Federal Reserve INTEREST FREE. The Federal Reserve’s profits come from its portfolio of around $4.4 trillion in US Treasuries and MBS instruments and amount to now more than $100 billion a year. The Federal Reserve rebates MORE TO THE US TREASURY THAN IT PAYS THE FEDERAL RESERVE EACH YEAR IN INTEREST on those $2.5 trillion of US Treasuries held by the Federal Reserve.

    The Federal Reserve since inception has rebated 94% of its profits each year to the US Treasury and has done that over its 103 years of operation. The Federal Reserve does not cost the US government or its taxpayers a single penny to operate and is the LARGEST SINGLE ENTITY CONTRIBUTOR EACH YEAR TO US GOVERNMENT REVENUES.

  • richard lavigne

    Urgnen to have an audit to proove it.

    • socalbeachdude

      The annual financial reports of the Federal Reserve are always fully independently audited each and every year and I provided you with the link for those highly detailed reports which typically run about 500 pages each and are signed off by their independent auditor each and every year.

      Those reports are at:

      http://www.federalreserve.gov/publications/annual-report/

  • Scott Todd

    The problem with Trump is he loves debt. Hopefully someone can get to him and make him realize inflation is really theft from the middle class.

  • jovette57

    SHUT DOWN THE FED! LOOK WHAT IT AND OBUMMER HAS DONE TO OUR DEBT? SHUT IT DOWN!

    • socalbeachdude

      The $19.5 trillion federal debt was RUN UP BY CONGRESS and not by the Federal Reserve and the Federal Reserve only owns about $2.5 trillion of that federal debt which is ESSENTIALLY INTEREST FREE TO THE US GOVERNMENT as the Federal Reserve rebates 94% of its profits each year to the US Treasury.

      • jovette57

        *DISQUS, CRAM IT UP YOUR TOO TOO!*

        • socalbeachdude

          I’d suggest you attempt to comprehend exactly what I stated which is 100% correct.

      • jovette57

        *UNSUBSCRIBE!*

  • jovette57

    LBJ AND THE “GREAT SOCIETY”!! WHAT A JOKE! BESIDES KILLING JFK, GREAT SOCIETY WAS ANOTHER OF HIS SINS!

  • socalbeachdude

    Those absurd and ridiculous assertions that have been fully covered below in the comments. There was NO DIFFERENCE WHATSOEVER between red seal US dollars and green seal or other color seal US dollars as to spending or accounting in the US economy.

  • EricWhoRU

    In regard to our monetary system,

    In reading this article and the many comments, I am somewhat disappointed in the missing content.

    I am an 82 year old retired businessman (furniture manufacturing).

    I am well studied in monetary systems and how the Fed works, and particularly why virtually all societies have failed because of political misuse or abuse of their monetary systems.

    In reading this item I was surprised and disappointed in the lack of presentation or failure to mention three critically important issues:

    1. The failure to mention or explain the primary purpose of money;

    2. The failure to explain what it is that constitutes the value that is assumed and implied is inherent in what is designated as being debt free money;

    3. The failure to explain why all monetary systems have failed and to present a design that would not fail.

    I contend that the empirical evidence indicates that the Founding Fathers intentionally set us up for our current financial failure by including two provisions in THEIR CONstitution (and their failure to properly protect the “protections” when they edited the fifty+ proposed amendments presented to them by the “commoners”, comprising the “Bill of Rights”).

    The first destruction enabling CONstitutional provision being the power assigned to CONgress to borrow money on the credit of the United States, with no manner or even suggestion of any manner of limitation or restriction to any amount or particular purpose.

    To the contrary, in their second “flaw”, the Wonderful Founders assigned CONgress the responsibility of providing for the general welfare, with again, no manner of restriction or limitation , thereby enabling the politicians to use these two “flaws” to create the Federal Reserve System, where CONgress can borrow unlimited money from itself, created out of thin air, with no underlying manner of human productivity behind such created money. This “money” is properly characterized as “FIAT”! I contend that the money created by the Fed to fund loans to private sector borrowers, such money being backed by physical collateral or the promise of the private sector borrower, is NOT properly designated as being FIAT.

    The problem here is that the money created by the Fed to fund loans to the private sector and to fund loans to the government, appear identical. When the unsecured FRNs created for the government enter circulation with the FRNs created to fund secured loans extended to the private sector, the unsecured government FRNs dilute the value of the secured FRNs created to fund loans to private sector borrowers. This government inflation of the circulating money supply causes prices to rise, because this FIAT money is not backed by any manner of human productivity.

    These two CONstitutional provisions have enabled CONgress to wrongly extend the authority of the Federal Government to provide health care, Social Security, financial aid to local police and many other “local” socialistic programs.

    The primary one and only purpose of money is to facilitate bartering. We humans do not actually need or want money; what we need and want are things we secure and provide for ourselves or obtain from other humans who have and are willing and able to provide for us the items that we need or want that we are not able or willing to provide for ourselves.

    Money facilitates direct bartering by making it indirect; however the money medium must actually represent some manner of existing human product or service as the backing for the money medium. Any intrinsic value of the medium is superfluous and actually hinders bartering. The medium that is cheapest is the best and that medium is paper. The problem has never been with the use of paper; the problem has always been in the failure to design a monetary system recognizing the inherent dishonesty of politicians.

    In order for the money medium to have value it must represent some actual manner of human productivity. Bartering is the direct exchange of actual value for actual value. Actual value is comprised of actual human productivity, not some imagined value such as is inherent in gold.

    This actual value is inherent in the paper money created by a Fed member bank to fund a mortgage or other loan, where the loan is secured by physical assets and or, by the promise of the borrower to create the value in the future, and therefrom repay the loan, including the interest charges for the privilege of being allowed to take ownership possession without having paid in full for the item purchased at the time possession was allowed. This inherent value does NOT exist in the truly FIAT money created by the Fed to fund government boondoggles.

    In regard to gold, I contend that the money value assigned to gold by humans is the result of centuries of erroneous indoctrination. Aside from jewelry and some use in electronics, where is there any actual need of humans for gold? However, be that as it may, no matter that such belief is actually unfounded, due to such being universally accepted, I agree with your advice that everyone should procure a sufficient quantity of gold (and silver) to protect themselves in the oncoming (actually ongoing), monetary collapse intentionally enabled in the manner in which the Founding Fathers wrote THEIR corruption seed-bed CONstitution.

    Although I did not find any information in this item in regard to gold being used as money, your failure to explain why gold would not work well as the money medium in an electrified society, causes readers to assume that you would support a precious metals money medium.

    Due to your knowledge and experience I am not going to bore you with a grammar school presentation of how electricity adversely affects a precious metals monetary system, but just a few high points:

    Under Fed license, local privately owned community banks fund loans with created money, not with their own owned money. Therefore they have no proper claim on the interest charged or on ownership of defaulted assets. Such loans are actually carried by the community where the created money circulates; therefore interest on loans and proceeds from sale of defaulted assets properly belongs to the people of the community and should be used to fund government, thereby reducing or eliminating taxation.

    With the interest going to the government, such interest would be spent back into circulation, thereby enabling the borrowers to reuse that interest money many times. Such recirculation would prevent any shrinkage of the circulating money supply as is currently caused by the local banks improperly taking the interest as their profit – such taking being nothing other than legalized theft.

    When precious metals are used as the money medium, the metals lent must actually exist and be the owned property of the lender, undoubtedly being private bankers. As the lenders are actually lending their own owned precious metals, the lenders would be properly entitled to take the interest paid as their legitimate profit; and likewise, the proceeds from the sale of defaulted assets.

    Where is there any Constitutional authority for the Federal Government to acquire any manner of precious metals for any purpose what-so-ever? Where is there any Constitutional provision assigning CONgress the authority to issue money? How did precious metal money enter circulation at the time the Constitution was implemented? Pay attention to the words actually written, not to your uneducated wishful thinking and hatred of banks.

    Electricity enabled refrigeration of food and corporate farming. This enabled/caused millions of Americans (former farmers), to concentrate in Suburbia, USA, necessitating an annual average of 70-80 million home mortgages. With private bankers lending their own gold, and taking the interest as their justly earned profit, how long would it be before the private bankers became the owners of all the gold? What would these former farmers then use to make their loan payments? How long would it be before the gold lending banksters became the owners of everything and everyone?

    The CONstitution regulates what the several states shall make as a tender as payment of debt, but the Founding Fathers “inadvertently” failed to include any manner of restriction on the Federal Government while they were empowering CONgress to borrow unlimited money and provide for the general welfare; again, such being a seed-bed for corruption.

    With consideration and application, of the Fourteenth Amendment’s “and subject to the jurisdiction thereof” clause, I can make an argument that everything Obama has done is CONstitutional; And, that none of the protections in the Bill of Rights wherein the word “People” is set forth, apply in any slight way to those persons who have volunteered themselves into subservient United States citizenship. Again, please pay attention to the contrived meaning of “and subject to the jurisdiction thereof”. What branch of the Federal Government is it that exercises the jurisdiction thereof? Is it not President Sadly Insane Obama?

    But to return to the issue at hand, in addition, the widespread erroneous belief that a precious metals money medium is superior to paper is so prevalent that such error really needs to be explained by someone of the stature of the author of this item.

    My number three herein above, is probably the most important due to the imminent failure of our current monetary system, AND, the ongoing intent to bring all countries into a one world economic system, which seems to be designed to follow the design of communism, where all private ownership of property will be eliminated and all utilities and similar services, health care and retirement, will be under the total control and management of a one world government, where all national boundaries are eliminated. That is, as the natives of Africa do not have refrigerators, then neither should those living in what now is known as America.

    My studies have enabled me to come to understand that the reason history reveals that all previous monetary systems have failed; that is, those starting out with precious metals, shifted to metal backed paper and then to unbacked paper, is because, as in the case of the United States, the Founding Fathers designed THEIR CONstitution to cause and or enable the financial failure of our society, in order to get even with those “commoners” who followed Thomas Paine’s suggestion that the commoners could manage their own government, without any king or aristocrat governing class.

    In their design of THEIR CONstitution the Founding Fathers employed the ever failing design of assigning CONgress full management and design of any monetary system CONgress decided to create, wherein the Federal Government is under full control of how much money it needs (to provide for the general welfare), and where such money shall come from (from CONgress’ own bank), The Federal Reserve.

    This central government design of monetary systems has been universally employed by every government in the recorded history of man and has always failed due to greedy politicians. We should assign control over our central bank away from CONgress, assign it to the Legislatures of the Fifty several states (fully assembled – NO appointed committees!), with a Constitutional provision establishing that no level of government shall ever be allowed to borrow money therefrom and that the People’s Central Bank shall only create money to fund loans to private sector borrowers; and that all interest collected shall be assigned to the four levels of government with no level allowed to determine what its distributed quantity shall be.

    Cheers,

    I am Eric Williams, The Radical In The Twilight Zone

    • socalbeachdude

      The Federal Reserve was established by CONGRESS and the FEDERAL RESERVE ACT in 1913 and has served the US extremely well throughout its 103 years of existence and will do the same over the next 100 or 200 years or more.

      All currencies in the world are fully backed by the current and future labor and productivity and assets of the citizens of their issuing governments. And that is the core problem that the world is now facing as most governments around the world have ESSENTIALLY RENDERED INSOLVENT THE NET WORTH OF THEIR CURRENCIES BY VASTLY OVERSPENDING BEYOND THEIR MEANS and there are severe consequences for doing so.

      The US dollar, like all currencies, is backed by the current and future assets and labor and productivity of the citizens of the issuing government which is VASTLY MORE VALUABLE than some little junk commodity such as gold or silver.

      The so-called “gold standard” was a very brief 60 year experiment from 1873 until 1933 which proved to be a VERY STUPID AND ABYSMAL FAILURE at which point it was thrown into the garbage bin of the most stupid notions in the history of the world and incinerated.

      The gold standard was TOTALLY DISCARDED DOMESTICALLY BACK IN 1933 as that brief 60 year failed experiment was an exercise in utter absurdity and the US economy had totally outgrown any use whatsoever for a little thingy commodity such as gold in relationship to its currency.

      Little niche collectible fungible commodity metals such as gold and silver have NO FINANCIAL RELEVANCE whatsoever in today’s modern electronic currencies and economies.

      The US long used a “silver standard” until that was discarded around 1870 and briefly replaced with the so-called “gold standard” which was totally discarded domestically in the US in 1933 as an entirely failed experiment. No currency can be limited to the production of some irrelevant “thingy” commodity such as gold or anything else when the population of that currency’s country is vastly expanding as was the case of the US by the 1930s.

      Nixon did not “abandon gold” at all. Nixon merely ended the Bretton Woods currency fixed exchange rate agreement which had been in force from 1944 to 1971.

      Nixon had nothing to do with the “gold standard” in the US which had long ago been TOTALLY DISCARDED BY THE US DOMESTICALLY back in 1933 and only a tiny shred of gold nonsense was even left in the form of international bank transaction convertibility which is what was discarded in 1971.

      Artificially constraining the growth of money supplies while the population is growing substantially CAUSES DEPRESSIONS and causes countries to fail economically.

      The most EGREGIOUSLY INSOLVENT COUNTRY IN THE WORLD TODAY IS JAPAN with government debt at around 250% of the GDP of Japan while the ratio in the EU is around 100% and in the US around 105%.

      Are you not aware that the total value of all gold ever mined is less than $7 trillion which is less than 1% of the world’s total assets of around $800 trillion? And of that total $7 trillion in currently absurdly elevated value for gold around 70% of all gold exists in the form of JEWELRY widely dispersed around the world leaving less than 30% of it even available theoretically to be used in any financial capacity and most of that is OWNED BY PRIVATE PARTIES leaving practically nothing available in the way of gold in relationship to any currencies anywhere in the world.

      Gold has NO FINANCIAL RELEVANCE whatsoever and never will ever again and the total value of the entire 180,000 or so metric tonnes which exist of the stuff are worth less than 1% of the the total assets in the world.

      • Alleged Comment

        It says Congress is to coin and regulate money. Not anybody else. Not the phony Federal Reserve.

        Congress is also suppose to tax not the IRS. This was done to shift the blame and unpopular collection to a phony agent.

        The same with the Federal Reserve which was DEBT LENDING to create SLAVERY.

        • socalbeachdude

          The US Constitution DOES NOT STATE WHAT YOU ASSERT AT ALL and I would suggest you go read the US Constitution to discover that fact for yourself.

          • Alleged Comment

            No it does state that. YOU read it yourself!

            They created the illegal IRS to tax you more and still get elected and let you blame and worry about the IRS but not the illegal phonies that put this on you.

            Otherwise they would never get elected or never be able to tax you to death.

          • socalbeachdude

            You are making laughably false and utterly absurd assertions which are flatly contradicted by the text of the US Constitution itself.

            Article 1 Section 8 of the Us Constitution (otherwise known as that “goddam piece of paper” as so eloquently stated by GWB) has NOTHING SPECIFIC TO SAY AT ALL ABOUT MONEY. It merely states:

            “The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;

            To borrow money on the credit of the United States;

            To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;

            To establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States;

            To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures…”

            Article I Section 8 of the US Constitution SAYS NOTHING WHATSOEVER ABOUT ANY METALS IN REGARDS TO MONEY contrary to your bogus assertions.

            Nowhere in the US Constitution including its amendments is anything stated whatsoever regarding the form of money and currency of the federal government of the USA.

            The only reference in the US Constitution at all to metals is in Article 1 Section 10 of the US Constitution which ONLY APPLIES TO STATES regarding the creating and form of currencies and has NOTHING WHATSOEVER TO DO WITH THE FEDERAL GOVERNMENT ITSELF.

            What you fail to understand is that in the United States the ONLY LEGAL TENDER FORM OF CURRENCY IS US DOLLARS and that gold and silver are NOT ACCEPTED AS ANY FORM OF CURRENCY AT ALL FOR A FLOATING COMMODITIES VALUE.

            The only extent to which gold and silver coins may be used in the US is with legal tender US Mint coins for their STATED NOMINAL FACE VALUES which in the case of a 1 oz. silver American Eagle is $1.900 and in the case of a 1 oz. gold American Eagle is $50.00.

          • Alleged Comment

            Hey idiot, it says CONGRESS not a Federal Reserve, not the IRS and while were at it, certainly not the EPA and HUNDREDS of other illegal agencies government sodomite.

            And I NEVER said anything about metals idiot. YOU did!

          • socalbeachdude

            No, the US Constitution does not state what you falsely asserted at all. Moreover, any power vested in Congress can be delegated by Congress to whomever it wishes to handle such matters. The IRS is part of the US Treasury and handles all tax matters of the US government. The Federal Reserve is defined by the Federal Reserve Act authorized by Congress and signed into law by the President of the United States and both are fully in compliance with the US Constitution.

            I would suggest you read the full and complete text of the US Constitution:

            The Constitution of the United States

            The Bill of Rights & All Amendments

            http://constitutionus.com/

          • Alleged Comment

            It says CONGRESS. Does not say a IRS, a Federal Reserve.

            Illegal IRS:

            So they can tax you of all your monies and hard work and blame it on the IRS.

            Illegal Federal Reserve (which is neither):

            So they can print all the money to get you out the debt and blame it on the Federal Reserve for getting you in debt and they can be re-elected over and over and look like white knights in shining armor.

          • socalbeachdude

            There is nothing whatsoever even slightly illegal about either the Federal Reserve or the IRS and the Federal Reserve is merely a central wholesale bank that has nothing whatsoever to do with anyone getting into debt and only deals with member banks. As to the IRS, it is the TAXING AGENCY FOR CONGRESS and only enforces the laws established by the Congress of the United States.

          • Alleged Comment

            It says “The Congress shall….”

            It does not say the IRS, the Federal Reserve, a phony Negro sodomite, crybabies living in momma’s basement, covetous lieberal or greedy Demoncraps, etc., no….

            It says “The Congress shall….”

          • socalbeachdude

            The US Constitution is MERELY A FRAMEWORK and not something to be taken literally as to every word. Anything that “THE CONGRESS SHALL” do can be DELEGATED BY CONGRESS which is precisely the case with the Federal Reserve Act and the IRS which are clearly delineated in specific laws that are FULLY CONSTITUTIONAL as to precisely what THEY SHALL DO AS DELEGATED BY THE US CONGRESS.

          • Alleged Comment

            Ahhh… you are just making things up as you go along. Admit it.
            That paper don’t mean nothing to you but to wipe your bass with.

            It specifically states THE Congress SHALL…. does not mention any other agency. ONLY CONGRESS!

            Otherwise they would create other agencies to pass the blame, the debt the responsibility too.

            EXACTLY what is happening NOW!!!

          • socalbeachdude

            Absolutely false. I would suggest you attempt to learn about exactly how CONSTITUTIONAL LAW works. Your assertions are as bogus as $3 Euro.

          • Alleged Comment

            There you go. Making like there is a $3 Euro.

  • Alleged Comment

    YES!

    Many people don’t know Congress committed an act of treason and betrayal when they created the phony Federal Reserve.

    Putting America FOREVER into debt. Now it is so high it cannot be paid back.

    The RESET will now DESTROY the world economy and bring in the Mark of the Beast.

    • socalbeachdude

      Absolutely false and utterly ludicrous assertions.

      • Alleged Comment

        So yours equals mine? Absolutely false and utterly ludicrous assertions.

        • socalbeachdude

          That is exactly what YOUR assertions are.

          • Alleged Comment

            So yours equals mine? Absolutely false and utterly ludicrous assertions

          • socalbeachdude

            The Federal Reserve had nothing to do with any of the debt run up in the United States which now exceeds $64 trillion across all sectors of the US economy.

  • Peter Nowak

    Yellen (at her incoming press conference) and SEC’s Chair Mary Jo White should confess that the Irish Accounting firms (incl. BIG4 PwC, EY, Deloitte does not exist under Irish law/ operate illegally and their purported legal opinions are invalid and of no legal effect. Fore more please follow @peternowak81 Why are they still business as usual? Why is not Securities and Exchange Commission reacting?

    • socalbeachdude

      Accounting firms do not give legal opinions, and second Mary Jo White will be replaced by Donald Trump as head of the SEC and Janet Yellen will be replaced in 2018.

  • EricWhoRU

    Dear Mr. Jacobs,

    I have read your article asserting that President Trump must eliminate the Fed and implement a monetary system where the government issues debt free money. I am somewhat disappointed in the missing content and your erroneous analysis.

    I am further concerned in your advice that readers should read Griffin’s caricature of the Fed. Griffin wrote what those Paytri-Idiots in the Freedom movement had convinced themselves was true, so that Griffin could sell thousands of his books to the ignorant and unintelligent, which includes just about everyone, in regard to the Fed and about how monetary systems work and why they fail.

    You claim that the Fed was poorly designed but do not explain the flaws. You claim that the word “note” being part of the Federal Reserve Note designation, establishes that such items are debt money; but you then advocate their replacement with debt free money designated as being United States Notes. How is it, Mr. Jacobs, that the word “note”on the latter, does not establish such items to be evidence of debt?

    Then you suggest that the Federal Government issue these debt free items into circulation. Where is there any Constitutional provision authorizing Congress to issue any manner of money into circulation? What does “issue into circulation” consist of?

    I am an 82 year old retired businessman (furniture manufacturing).

    I am well studied in monetary systems and how the Fed works, and particularly why virtually all societies have failed because of political misuse or abuse of their monetary systems.

    As I will explain herein below, it is the intentional poor design of the CONstitution that has enabled CONgress to destroy our monetary system. To the contrary of your position, the Fed has done a marvelous job in keeping this economy afloat; overcoming the misuse of CONgress and the President.

    In reading your article I was surprised and disappointed in your lack of presentation or failure to mention three critically important issues:

    1. Your failure to mention or explain the primary purpose of money;

    2. Your failure to explain what it is that constitutes the value that you imply would be inherent in “debt free money” issued by the government;

    3. Your failure to explain why all monetary systems have failed and to present a design that would not fail.

    That is, if what you advocate were to be implemented (CONgress issuing United States Notes into circulation), I presume such “issuance” would be through the government using such items to pay its obligations, such as Social Security, and to pay for our military.

    What would be the backing of such money? Other than the absence of interest, what would be the advantage of such notes? How would such notes not be inflationary? How would such notes not devalue the purchasing power of all such notes already in circulation?

    In regard to the interest collected by the Fed, are you aware that all Fed income above expenses is credited to the Federal Treasury every year? Are you aware that the Fed has been audited every year since its implementation?

    Are you aware that the vast majority of interest paid by private sector mortgage borrowers on loans extended by such local privately owned banks is retained by such local banks as their profit, and that very little of that interest is paid over to the Fed?

    Are you aware of how fractional reserve lending actually works; why it was implemented and, of its substantial benefits to the economy?

    I contend that the empirical evidence indicates that the Founding Fathers intentionally set us up for our current economic failure by including two seed-beds for corruption provisions in THEIR CONstitution (and their failure to properly protect the “protections” when they edited the fifty+ proposed amendments presented to them by the “commoners”, comprising the total joke known as the “Bill of Rights”). The first such CONstitutional provision being the power assigned to CONgress to borrow money on the credit of the United States, with no manner or even suggestion of any manner of limitation or restriction to any amount or particular purpose.

    To the contrary, in their second “flaw”, the Wonderful Founders assigned CONgress the responsibility of providing for the general welfare, with again, no manner of explanation, restriction or limitation, thereby enabling the politicians to use these two “flaws” to create the Federal Reserve System, where CONgress can borrow unlimited money from itself, created out of thin air, with no underlying manner of human productivity behind such created money. This “money” is properly characterized as “FIAT”! I contend that the money created by the Fed to fund loans to private sector borrowers, (such money being backed by physical collateral and / or the promise of the private sector borrower), is NOT properly designated as being FIAT.

    The problem here is that the money created by the Fed enabling local Fed member banks to fund loans to private sector borrowers and created by the Fed to fund loans to the government, appear identical. If FRNs created to fund government loans (backed by nothing), were printed in red ink, and the FRNs created to fund loans extended to private csector borrows (backed by physical collateral and or by the promise of the borrower), were printed in green ink, who would accept any of the worthless undacked red money?

    When the unsecured FRNs created for the government enter circulation with the FRNs created to fund secured loans extended to private sector borrowers, the unsecured government FRNs dilute the value of the secured FRNs created to fund loans to private sector borrowers.

    This inflation of the circulating money supply by government FIAT money borrowing is the primary cause of rising prices and the debasement of the FRNs created to fund loans to private sector borrowers. This is because this government FIAT money is not backed by any manner of human productivity.

    This evil of creating FIAT money to fund loans to the government may be actually performed by the Fed, but only because CONgress created the Fed to enable and activate the corruption implanted into the CONstitution by the Founding Fathers. Is there any realistic possibility that the Founders design was through ignorance and inadvertence?

    It is through these two CONstitutional provisions that the Founding Fathers enabled CONgress to wrongly extend the authority of the Federal Government to provide health care, Food Stamps, Social Security, financial aid to local police and many other “local” socialistic programs. President Reagan signed an agreement assigning control of our public schools to Russia, through the United Nations. This is how Reagan kept his promise to eliminate the Federal Department of Education.

    The primary one and only purpose of money is to facilitate bartering. We humans do not actually need or want money; what we need and want are things we secure and provide for ourselves or obtain from other humans who have and are willing and able to provide for us the items that we need or want that we are not able or willing to provide for ourselves.

    Money facilitates direct bartering by making it indirect; however the money medium must actually represent some manner of existing product or service as the backing for the money medium. Any intrinsic value of the medium is superfluous and actually hinders bartering. The medium that is cheapest is the best and that medium is paper. The problem has never been with the use of paper; the problem has always been in the failure to design a monetary system recognizing the inherent dishonesty of politicians and the propensity of most humans to accept something apparently free.

    In order for the money medium to have value it must represent some actual manner of human productivity. Bartering is the direct exchange of actual value for actual value. Actual value is comprised of actual human productivity, not some imagined value such as is inherent in gold or paper money issued into circulation by government spending. Such human productivity may be either physical or intellectual.

    This actual value is inherent in the paper money created by a Fed member bank to fund a mortgage or other loan, where the loan is secured by physical assets and or, by the promise of the borrower to create the value in the future, and therefrom repay the loan, including the interest charges for the privilege of being allowed to take ownership possession without having paid in full for the item purchased at the time possession was allowed. This inherent value does NOT exist in the truly FIAT money created by the Fed to fund government boondoggles.

    In regard to gold, I contend that the money value assigned to gold by humans is the result of centuries of erroneous indoctrination. Aside from jewelry and some use in electronics, where is there any actual need of humans for gold? However, be that as it may, no matter that such belief is actually unfounded, due to such being universally accepted, I agree with advice that everyone should procure a sufficient quantity of gold (and silver) to protect themselves in the oncoming (actually ongoing), monetary collapse intentionally enabled in the manner in which the Founding Fathers wrote THEIR corruption seed-bed CONstitution.

    Although I did not find any information in your article in regard to gold being used as money, your failure to explain why gold would not work well as the money medium in an electrified society, causes readers to assume that you would support a precious metals money medium.

    Due to your knowledge and experience I am not going to bore you with a grammar school presentation of how electricity adversely affects a precious metals monetary system, but just a few high points:

    Under Fed license, local privately owned community banks fund loans with created money, not with their own owned money. Therefore they have no proper claim on the interest charged or on ownership of defaulted assets. Such loans are actually carried by the community where the created money circulates; therefore interest on loans and proceeds from sale of defaulted assets properly belongs to the people of the community and should be used to fund government, thereby reducing or eliminating taxation.

    With the interest money going to the government, such interest money would be spent back into circulation, thereby enabling the borrowers to reuse that interest many times. Such recirculation would prevent any shrinkage of the circulating money supply as is currently caused by the banks improperly taking the interest as their profit – such taking being nothing other than legalized theft.

    When precious metals are used as the money medium, the metals lent must actually exist and be the owned property of the lender, undoubtedly being private bankers. As the lenders are actually lending their own owned precious metals, the lenders would be properly entitled to take the interest paid as their legitimate profit; and likewise, the proceeds from the sale of defaulted assets.

    Where is there any Constitutional authority for the Federal Government to acquire any manner of precious metals for any purpose what-so-ever? Where is there any Constitutional provision assigning CONgress the authority to issue money? How did precious metal money enter circulation at the time the Constitution was implemented? Pay attention to the words actually written, not to your uneducated wishful thinking and hatred of banks.

    Electricity enabled refrigeration of food and corporate farming. This enabled/caused millions of Americans (former farmers), to concentrate in Suburbia, USA, necessitating an annual average of 70-80 million home mortgages. If such loans were funded by private bankers lending their own gold, and taking the interest as their justly earned profit, how long would it be before the private bankers became the owners of all the gold? What would these former farmers then use to make their loan payments? How long would it be before the gold lending banksters became the owners of everything and everyone?

    The CONstitution regulates what the several states shall make as a tender as payment of debt, but the Founding Fathers “inadvertently” failed to include any manner of restriction on the Federal Government while they were empowering CONgress to borrow unlimited money and provide for the general welfare; again, such being a seed-bed for corruption.

    With consideration and application, of the Fourteenth Amendment’s “and subject to the jurisdiction thereof” clause, I can make an argument that everything Obama has done is CONstitutional; and, that none of the protections in the Bill of Rights wherein the word “People” is set forth in five critical items; thereby establishing that such protected rights do not apply in any slight way to those persons who have volunteered themselves into subservient United States citizen status. Again, please pay attention to the contrivable meaning of “and subject to the jurisdiction thereof”. What branch of the Federal Government is it that exercises the jurisdiction thereof? Is it not President Sadly Insane Obama? Purported to be a CONstitutional scholar?

    But to return to the issue at hand, in addition, the widespread erroneous belief that a precious metals money medium is superior to paper is so prevalent that such error really needs to be explained by someone of your stature.

    My number three herein above, is probably the most important due to the imminent failure of our current monetary system, AND, the ongoing intent to bring all countries into a one world economic system, which seems to be designed to follow the design of communism, where all private ownership of property will be eliminated and all utilities and similar services, health care and retirement, will be under the total control and management of a one world government, where all national boundaries are eliminated. That is, as the natives of Africa do not have refrigerators, then neither should those living in what now is known as America.

    My studies have enabled me to come to understand that the reason history reveals that all previous monetary systems have failed; that is, those starting out with precious metals, shifted to metal backed paper and then to unbacked paper, is because, in the case of the United States, the Founding Fathers designed THEIR CONstitution to cause and or enable the financial failure of our society, in order to get even with those “commoners” who followed Thomas Paine’s suggestion that the commoners could manage their own government, without any king or aristocrat governing class.

    In their design of THEIR CONstitution the Founding Fathers employed the ever failing design of assigning CONgress full management and design of any monetary system CONgress decided to create, wherein the Federal Government is under full control of how much money it needs (to provide for the general welfare), and where such money shall come from (from CONgress’ own bank), The Federal Reserve.

    This central government design of monetary systems has been universally employed by every government in the recorded history of man and has always failed due to greedy politicians. We should assign control over our central bank away from CONgress, assign it to the Legislatures of the Fifty several states (fully assembled – NO appointed committees!), with a Constitutional provision establishing that no level of government shall ever be allowed to borrow money therefrom and that the People’s Central Bank shall only create money to fund loans to private sector borrowers; and that all interest collected shall be assigned to the four levels of government (City, County, State and Federal), with no level allowed to determine what its distributed quantity shall be.

    Cheers,

    I am Eric Williams, The Radical In The Twilight Zone

    • socalbeachdude

      100% correct and well stated.

  • Maximmus

    Trump is a figurehead unless he has guts to abolish fed like jfk attempted

    • socalbeachdude

      Nope, and that is an extremely stupid assertion.

  • Maximmus

    Trump is a figurehead unless he has guts to abolish fed like jfk attempted

    • socalbeachdude

      False, and the Federal Reserve was created by Congress and is governed by Congress as it was established by an Act of Congress known as the Federal Reserve Act and no President has any authority to amend that act in any manner.

  • olde reb

    As you point out in your analysis, the structure of increasing the national debt to pay the interest on previous debt is the hallmark of a Ponzi scheme.

  • socalbeachdude

    John Kennedy did no such thing at all as you falsely and cluelessly assert and your assertions regarding the Federal Reserve are delusional and totally bogus.

  • socalbeachdude

    What utterly BS nonsense and total falsehoods.

    • olde reb

      Considering the source, this is the strongest expression of confirmation I could ever wish for.

      • socalbeachdude

        I would suggest you learn about the Federal Reserve at:

        http://www.FederalReserve.gov

        • olde reb

          That is an excellent source of disinformation put out by the wizard behind the curtain. You will notice the site does not mention the exclusive handling by the FRBNY of the $10 trillion created by auctions of Treasury securities. Ref. 31 CFR 375.3. Nor does the Annual Report to Congress mention the funds. Nor have the accounts ever been audited.

          • socalbeachdude

            Everything on the Federal Reserve web sit4e is fully accurate and correct.

            You will notice that they don’t account for BOGUS FANTASY TRANSACTIONS WHICH NEVER OCCURRED such as those you purport above.

            The annual financial reports of the Federal Reserve are always fully independently audited each and every year and I provided you with the link for those highly detailed reports which typically run about 500 pages each and are signed off by their independent auditor each and every year.

            Those reports are at:

            http://www.federalreserve.gov/publications/annual-report/

          • olde reb

            Thank you. I have hard-copies of several years of the Annual Report to Congress. The included audits by national accounting firms are required by the Federal Reserve BOG to follow guidelines prescribed by the BOG. The guidelines permit auditing of the operating accounts of the 12 FR Banks.

            The Primary Dealers are tasked with collecting the called and redeemed
            Treasury securities. They are also required to submit bids for
            Treasury securities that are being auctioned. Due to the extensive
            involvement by PD’s, by direct purchasers of Treasury securities, and by foreign banks, the auction accounts are identified as client accounts which are not permitted to be audited.

            Securities being auctioned are earmarked with a variable percentage for deficit spending of approximately ten percent. The auctions amount to
            approximately $10 trillion annually. One trillion is for deficit spending and the nine trillion is for roll-over of prior National debt. All disbursements of these funds is exclusively handled by the FRBNY. Since most purchases are by Wall Street bankers, the Treasury plays a cameo role in the auctions. Ref. 31 CFR 375.3.

            Since the PDs are both buying the new issue of securities from the
            government (for resale in the market), and also selling the collected
            redeemed securities to the government, the FRBNY does all of the accounting work for roll-over transactions.

            That leaves the (currently) approximate one trillion dollars from deficit spending to address. If the money went to the government, it would have to purchase securities in the amount of National Deficit spending. But such a move would result in the elimination of book entry money that was created by the issuance of deficit spending securities; i.e., it would result in no inflation and would prevent any increase in the National debt. Obviously, the money does not go to the government.

            I leave you with this question: Where does the money from deficit spending securities go ??

          • socalbeachdude

            Obviously, all funds raised in US Treasury Actions go to the US TREASURY which is the one selling around $7 trillion in new US Treasuries at auction every year through its primary dealers. All of the proceeds on the auctions for new US Treasuries go to the US Treasury less very small fees charged by the primary dealers. Your assertions to the contrary are as bogus as a $3 Euro.

            For more information on the US Treasury markets, see:

            http://www.TreasuryDirect.gov

  • Mike Davis

    Michael you should submit your resume to the Trump transition team for economic advisor or treasury secretary. My thoughts were to create treasury dollars and exchange them for Fed notes at 50% value or less, Freeze commodity and consumer pricing, assets and liabilities and cut them the same percentage to reset the economy to 1970 values. Get in and do something Michael

    • socalbeachdude

      What utter nonsense. That’s now how it works at all.

  • socalbeachdude

    The FEDERAL RESERVE SIMPLY MATCHES THE FEDERAL FUNDS RATE TO THE YIELD ON THE 3 MONTH US TREASURY RATE and that has been the case for the entire 100 years of operation of the Federal Reserve. The yield (interest rate) on the 3 year US Treasuries has now skyrocketed up to 1.41% as of November 25, 2016 whereas the Federal Funds Rate is currently in the range of 0.25% to 0.50% where it was moved upwards to on December 16, 2015.

    Obviously, the Federal Reserve will continue to TIGHTEN as it has been doing for the past year and will raise the only 3 interest rates that they set – not that it matters a hoot – on December 14, 2016.

    The Federal Reserve these days has nothing left that it can do except to push on limp noodles and there’s not much result with that.

    The Federal Reserve DOES NOT SET ANY INTEREST RATES THAT MATTER IN THE US ECONOMY NOR DOES IT EVEN INFLUENCE INTEREST RATES IN THE US ECONOMY TO ANY SIGNIFICANT EXTENT AT ALL.

    Changes in the Federal Funds Rate ALWAYS MATCH THE YIELD ON 3 YEAR US TREASURIES WHICH ARE THE KEY INTEREST RATE THAT ALWAYS LEADS WHERE THE FEDERAL RESERVE SETS THE FEDERAL FUNDS RATE and as Sandy Greenlyn stated recently over on MarketWatch, “It’s interesting how few people understand that the Fed funds rate chases the market-driven 3M T-Bill exactly and they have never deviated at all.”

    Open market operations are TOMO (Temporary) and POMO (Permanent) and were ESSENTIALLY RENDERED IRRELEVANT AND USELESS WITH THE FEDERAL RESERVE VERSIONS OF QE which were POMO ON STEROIDS.

    The BANKS ARE NOW SO AWASH IN VAST EXCESS RESERVES as a result of selling securities to the Federal Reserve with QE that the banks in the US now have MORE THAN $3.5 TRILLION IN EXCESS RESERVES compared to the historical norm of around $25 billion in excess reserves in their accounts at the Federal Reserve.

    The Federal Discount Rate only applies to member banks BORROWING DIRECTLY FROM THE FEDERAL RESERVE AT THE FEDERAL DISCOUNT RATE which is presently 1.00% which is 200% of the top 0.50% range of the Federal Funds Rate at which banks can borrow from each other.

    Banks can only borrow with the Federal Discount Rate on a fully collateralized basis for very short terms (typically overnight) STRICTLY FOR LIQUIDITY PURPOSES and THEY LITERALLY NEVER BORROW FROM THE FEDERAL RESERVE DIRECTLY as that has always carried a stigma and is now 200% of the cost for them to borrow from each other at the Federal Funds Rate. The Federal Reserve Discount Window has always been a LAST RESORT BORROWING MECHANISM for banks with sudden severe liquidity problem and has rarely ever been utilized hardly at all.

    RESERVE REQUIREMENTS are also TOTALLY IRRELEVANT THESE DAYS as banks are AWASH WITH VAST HUMONGOUS EXCESS RESERVES FAR IN EXCESS OF WHAT THEY ARE REQUIRED TO MAINTAIN AS RESERVES AGAINST DEPOSITS.

  • socalbeachdude

    The yield on the 3-month US Treasury is 1.41% as of November 25, 2016, and not 5% as incorrectly stated above. That puts it up more than 40% since early July 2016 on the yield (interest rate) which is a very substantial increase. The Federal Reserve always matches the Federal Funds Rate applicable to interbank lending to the yield on 3 month US Treasuries and the current Federal Funds rate which was last changed on December 16, 2016 is still in the range of 0.25% to 0.50% which is about one-third of the yield (interest rate) on 3 month US Treasuries.

    Daily US Treasury Yield Curve Rates

    https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

  • socalbeachdude

    As of December 1, 2016, the yield on US 10 year Treasuries soared up to 2.435%.

  • Cole West

    If you were to abolish the Fed, what would you replace it with?

  • zepovososifu

    Do like Zimbabawe and their funny money!!!

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