Federal Reserve Chairman Ben Bernanke Warns Congress That The Federal Reserve Will Not “Print Money” To Pay For The Exploding U.S. National Debt

On Wednesday, Federal Reserve Chairman Ben Bernanke warned Congress that the Federal Reserve does not plan to “print money” to help Congress finance the exploding U.S. national debt.  In fact, Bernanke told Congress that the U.S. could soon face a debt crisis as bad as the one in Greece if the U.S. government does not get things in order financially.  This represents a fundamental change in policy for the Federal Reserve, because they have been enabling the massive borrowing by the U.S. government over the past couple of years by “buying” the majority of new U.S. government debt that has been issued.  But now the fat cats over at the Federal Reserve have apparently changed their minds.  Using uncharacteristic bluntness, Bernanke told Congress that the Federal Reserve is “not going to monetize the debt”.

So why is the Federal Reserve changing course?

Well, there are a couple of possibilities.  One is that the Federal Reserve could legitimately be concerned that the exploding U.S. debt could actually collapse the U.S. economy and ultimately the U.S. government.

You see, the Federal Reserve is a parasite.  They make money for their owners by sucking money out of the U.S. government and out of U.S. taxpayers.  So, just like any parasite, they must strike a delicate balance.  They have to keep feeding off the host without killing off the host completely.  If the host dies it could end up killing the parasite.  So the Federal Reserve actually needs to try to keep the U.S. economy alive so that it can slowly keep draining it.

In fact, during his remarks to Congress, it certainly sounded like Bernanke honestly desires that the U.S. government will come up with a sustainable financial plan for the future….

“It is very, very important for Congress and administration to come to some kind of program, some kind of plan that will credibly show how the United States government is going to bring itself back to a sustainable position.”

The second possibility is a bit more insidious.  As we have written previously, it looks like “the financial powers that be” have decided to reduce the money supply, tighten credit and hoard cash.  All of those things reduce economic activity. 

This new public stance by Bernanke is right in line with that.  If the Federal Reserve will not finance the exploding U.S. government debt, then either the U.S. government will have to dramatically cut back on spending (which would seriously slow down the U.S. economy) or the U.S. government will have to borrow from other sources at much higher interest rates (which will have very serious negative effects on the U.S.. economy).  Either way, this new stance by the Federal Reserve is not good news for those hoping for U.S. economic growth.     

The truth is that someday the exponential growth of the U.S. national debt will basically force the Federal Reserve to “print money”, but for now it looks like the financial powers have another agenda. 

From all indications, it look like that agenda is seriously going to slow down the U.S. economy.

That is likely to seriously anger American voters.  Already, millions of Americans have lost their homes and their jobs, and things are probably only going to get worse.

The result is that there is likely to be an overwhelmingly strong anti-incumbent mood in the nation as we approach the election season of 2010.  Even now, only 10% of American voters say that Congress is doing a good or excellent job.

That is not good news for the fat cats in Washington.

Not that we should feel sorry for them when they get voted out.

Anyway, as always we welcome your comments.  If we do not publish your comment right away, don’t be discouraged, because sometimes we hold on to a comment for a bit because we want to figure out a way to feature some of the very best comments in a future article.

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If you do enjoy this site, there are a couple of our other sites that you may enjoy as well.  For example, each day we post a collection of the most crucial news stories of the day on our daily news site entitled “The Most Important News”.  In fact, you can find the news for today right here.

We would also encourage you to visit our new site entitled “The American Dream” which will also focus on financial issues, but from a slightly different angle.

Thanks again for visiting our site and for helping  us get the word out.  It is only because of our readers that we are able to do what we do.

15 Reasons Why Barack Obama’s Declaration That “A Second Depression Is No Longer A Possibility” Is Dead Wrong

Is the United States economy headed for another Great Depression?  Well, according to Barack Obama, that is no longer possible.  According to Obama, the United States has avoided an economic collapse and is headed for another wonderful era of growth and prosperity.  But is Obama right?  Do the economic signs indicate that the U.S. is headed towards recovery or towards even more difficult times?  As you shall see below, there is no way in the world that Barack Obama should have ever said that “a second depression is no longer a possibility”.  In fact, as the U.S. financial system continues to crumble, it is likely that those words will be exploited by his political adversaries again and again.  If you are a politician and you are going to issue a guarantee, you had better be able to deliver the goods.  In this case, Obama is making a promise that defies all of the economic data.

Video of Obama making his declaration that “a second depression is no longer a possibility” is posted below….      

So why is Obama wrong?  Well, if you want a full examination of why the United States is headed for an economic collapse, please read the rest of this blog.  In this article we just wanted to highlight a few of the reasons why the U.S. is headed for a complete financial meltdown….

#1) The U.S. housing market is continuing to come apart like a 20 dollar suit.  The U.S. government just announced that in January sales of new homes plunged to the lowest level on record.  This is not a sign that the U.S. economy is recovering.

#2) In fact, a lot more houses may be on the market soon.  The number of U.S. mortgages more than 90 days overdue has climbed to 5.1 percent.  An increasing number of Americans find themselves simply unable to keep up with their mortgages.  This is another indication that things are getting worse instead of better.

#3) Over 24% of all homes with mortgages in the United States were underwater as of the end of 2009.  So in other words, nearly one out of every four U.S. homeowners with a mortgage owe more on their homes than the homes are worth.  That is a giant mess, and it is going to be very painful to untangle it.

#4) If all of that wasn’t bad enough, a massive “second wave” of adjustable rate mortgages is scheduled to reset beginning in 2010.  The “first wave” of mortgage resets from 2006 – 2008 absolutely crippled the U.S. housing market, and this second wave threatens to make things far worse.

#5) Confidence among U.S. consumers fell dramatically in February to the lowest level in 10 months.  Consumers that are not confident in the economy tend to hold on to their money.  If consumers don’t spend their money then the economy is not going to grow.

#6) Many analysts are predicting that the next “shoe to fall” in the ongoing financial crisis will be commercial real estate.  U.S. commercial property values are down approximately 40 percent since 2007 and currently 18 percent of all office space in the United States is sitting vacant. 

#7) In fact, the commercial real estate sector is just now entering the danger zone.  It is projected that the largest commercial real estate loan losses will be experienced in 2011 and the years following.  Some analysts are estimating that losses from commercial real estate at U.S. banks alone could range as high as 200 to 300 billion dollars.  To get an idea of how rapidly commercial real estate loans are turning sour, just check out the chart below….

#8) All of these bad loans are causing banks to dramatically slow down real estate lending.  During the middle of the decade, the number of commercial real estate loans exploded, but now the bubble has burst, and as the chart below reveals, commercial real estate lending has dropped through the floor….

#9) All of these real estate problems are decimating America’s small and mid-size banks.  The FDIC has announced that the number of banks on its “problem” list climbed to 702 at the end of 2009.  This is compared to only 552 banks that were on the problem list at the end of September and only 252 banks that were on the problem list at the end of 2008.  As you can see from these figures, the banking crisis in the U.S. is escalating rapidly.

#10) The U.S. national debt is now over 12 trillion dollars and it is rising at a rate of about 3.8 billion dollars per day.  In fact, some analysts are projecting that the United States will borrow more money in 2010 than the rest of the governments of the world combined.

#11) The financial mess in the U.S. is scaring off other nations from buying U.S. government debt.  In fact, the Federal Reserve now has to “buy” most U.S. government debt because others are extremely hesitant to purchase the massive amount of bad paper the U.S. is trying to sell.  In addition, other countries are now using the massive amounts of U.S. government debt that they already hold as leverage.  A major U.K. newspaper is warning that evidence is mounting that recent Chinese sales of U.S. Treasury bonds are intended as a warning to the United States government rather than simply being part of a routine portfolio shift.

#12) But the U.S. is not the only economy that is suffering during this economic downturn.  The entire world economy has been impacted.  The World Trade Organization has announced that world trade fell by 12% last year as the world economic crisis caused the biggest drop in world trade since 1945.

#13) The United States should not expect the rest of the world to pick up the economic slack either.  The crisis in Greece has made headlines all over the globe recently, and Harvard University Professor Kenneth Rogoff is warning that we could soon see a huge wave of sovereign defaults.

#14) The reality is that things are so bad in some parts of Europe that it could take years and years to recover.  In fact, the chief economist of the International Monetary Fund is warning that financial “belt-tightening” in Europe will be “extremely painful” and could take up to 20 years.  The truth is that if Europe is suffering economically, it will be very difficult for the U.S. to recover at the same time.

#15) In addition, some of the most prominent investors in the world know what is coming and are issuing their own warnings.  For example, Charlie Munger, Warren Buffett’s long-time business partner, has warned in a new article for Slate.com that “it’s basically over” for the U.S. economy.  Marc Faber is warning that things are going to get so bad that it is time for investors to buy farmland and gold.

But apparently Barack Obama knows better. 

Apparently Barack Obama can guarantee that it is impossible for the United States to go into another depression.

Do you believe him?

The American Economy: The Wealthy Make The Mistakes But The Hard Working Middle Class Pays The Price

This is how the U.S. economy works much of the time – the wealthy make most of the big economic mistakes but the hard working middle class ends up paying for them. This time around is no exception. The financial crisis of the past several years was caused by Wall Street, but they got bailed out and relatively few of them lost their jobs. However, even though middle class and working class Americans were not the ones who made the mess, they are paying for it dearly. This is especially true when it comes to unemployment. While it is true that jobs are being lost on every level of American society, the reality is that unemployment is hitting Americans on the lowest end of the income scale the hardest.

Just check out the chart below.  The ten percent of Americans that have the lowest household incomes have an unemployment rate of over 30 percent, while the ten percent of Americans that have the highest household incomes have an unemployment rate just about 3 percent….

Does this seem right to you?

After all, we were promised that we needed to bail out Wall Street so that they could help “Main Street”.

But that didn’t happen, did it?

Instead, it appears that previously bailed out corporations are going back to their old ways of paying out ridiculous bonuses.

For example, the CEO of General Motors is in line to get a $9 million pay package. 

What in the world?

A company that was so flat broke that it would have likely collapsed without U.S. government intervention is handing out 9 million bucks to the CEO?

Something is very, very wrong.

And the truth is that working class Americans are getting pissed off.

For example, one Ohio man actually decided to bulldoze his own home rather than let the bank take it in foreclosure proceedings.

Now that is an incredibly destructive and vindictive act, but it just shows how angry some people are getting.

Many working class and middle class Americans feel powerless as the politicians and the wealthy recklessly destroy the U.S. economy.

Just consider the following chart.  The U.S. government has massively increased spending at a time when revenues are decreasing sharply.  Does this look like a “recovery” to you?….

The truth is that the U.S. national debt is wildly out of control.  In 2010, the U.S. government is projected to issue almost as much new debt as the rest of the governments of the world combined.

In fact, it is anticipated that the U.S. national debt will climb to an unprecedented 200 percent of GDP by 2038 without a fundamental change in course.

Is this kind of reckless financial mismanagement going to cause an economic collapse?

Of course.

And Americans are starting to wake up and realize this.

In a recent ABC News poll, 87 percent of Americans said that they are concerned about the U.S. national debt.

In a new CNN/Opinion Research Corp. survey, 86 percent of Americans believe that the U.S. system of government is broken.

And it is broken.

So is it still possible to repair it?

Feel free to leave a comment with your opinion….

The Credit Card Trap: How U.S. Credit Card Companies Are Sucking The Financial Life Out Of The American Consumer

There have been very few things more damaging to American consumers over the past couple of decades than credit card debt.  Easy credit has enabled many of us to live absolutely fabulous lifestyles, but outrageously high interest rates, ridiculous penalties and predatory fees have sucked the financial life out of millions of American families.  It is very easy to blame the rapidly exploding debt of the U.S. government for the economic collapse that we are now experiencing, but the truth is that tens of millions of Americans have created their own personal economic disasters by overusing credit cards.  The temptation of easy credit has been too much for millions of Americans to resist, but now all of that easy credit is proving to be incredibly difficult to pay back, and massive debt problems are literally tearing many American families apart.

It is hard to underestimate how devastating credit card debt can be to a family.

According to the credit card repayment calculator, if you owe $6000 on a credit card with a 20 percent interest rate and only pay the minimum payment each time, it will take you 54 years to pay off that credit card.

During that time you will pay $26,168 in interest rate charges in addition to the $6000 in principal that you are required to pay back.

That does not even account for any penalties or fees you may have to pay.

Are you starting to get the picture?

The reality is that credit cards are one of the greatest inventions for sucking the wealth out of middle class American families ever invented.

Just consider the following facts….

*According to the United States Census Bureau, there are approximately 1.5 billion credit cards in use in the United States.

*At the end of 2008, the total credit card debt piled up by American consumers was over 972 billion dollars.  This is an amount that is greater than the GDP of the world’s 122 poorest nations combined.

*78 percent of American households had at least one credit card at the end of 2008.

*The top 10 credit card issuers control approximately 88 percent of the credit card market.

*The average U.S. college graduate leaves school with more than $2,000 in credit card debt.

So is Congress doing anything to protect American consumers?

Well, some of the key provisions of The Credit Card Accountability, Responsibility and Disclosure Act, commonly known as the CARD Act, go into full effect for all credit card providers on February 22nd.  In particular, starting on the 22nd limits will be imposed on when credit card issuers can raise rates on existing card balances.

But the truth is that this new law doesn’t really do much to protect us.  U.S. credit card companies will continue to be able to engage in highly predatory practices.  The following are just three examples….

#1) According to Pamela Banks of Consumers Union, the nonprofit publisher of Consumer Reports, there are no current federal laws that cap credit card interest rates.  In fact, CNN is reporting that interest rates on some major bank credit cards are now as high as 36 percent.

#2) New laws only address the existing fees charged by credit card companies.  So credit card companies are working hard to invent all kinds of new fees and penalties that will get around the new laws so that they can keep sticking it to American consumers.  For example, Citibank is now charging some consumers with a fee if they put less than $2,400 on their card annually.

#3) In anticipation of the CARD Act going into effect, many credit card companies have been aggressively bumping up the minimum payments for many of their customers.  Chase, one of the biggest credit card providers, recently increased the mandatory minimum payment for many consumers by 150 percent.  MBNA, Citibank and Bank of America have announced that they are doubling minimum monthly payments on credit card balances for many of their customers.  These increases have been absolutely devastating for many families who are on a tight budget.

The bottom line is that we all need to get out of debt and we all need to stop using credit cards.  It is financial insanity to end up paying two, three, four or five times as much for an item as it cost in the store.  We have been making the big banks rich by spending money that we do not have.

So if we are going to accuse the U.S. federal government of horribly wasting our money, we have got to be certain that we are geting our own financial houses in order.

But for many American families it is already too late.  It is hard to pay off debt if you don’t have a job and you are about to lose your home.  In fact, many American families find themselves literally being torn apart by financial stress.

Unfortunately, economic times are not going to get any easier.  If you are able, get out of debt while you still can.  Now is the time to tighten our belts and to prepare ourselves and our families for what is ahead.

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Economic Warning! 4 Signs That U.S. Financial Authorities Plan To Reduce The Money Supply, Tighten Credit And Hoard Cash

More than ever before in U.S. history, American society absolutely relies on credit in order to function.  In fact, if you cut off all sources of credit to U.S. businesses, most of them would go out of business fairly quickly.  The truth is that when the money supply expands and credit flows freely, the U.S. economy usually hums along pretty good.  But when the money supply contracts and the financial powers tighten credit, it almost always means that an economic slowdown is coming.  That is why recent signals by the Federal Reserve and the major banks in the U.S. are so alarming.

But why would the financial authorities want to contract the money supply and tighten credit just when the U.S. economy is showing some signs of life?

Well, the truth is that nobody can read their minds.  In the long run, the massive size of the U.S. national debt is going to force a massive increase in the size of the U.S. money supply and will eventually lead to hyperinflation.

However, in the short term U.S. financial powers may see this as a chance to further consolidate their power.  There are rumors that they still desire much greater “consolidation” in the banking industry.

So how would this “consolidation” be achieved?

Well, a massive “second wave” of mortgages is scheduled to reset over the next two to three years.  If credit is tight and the U.S. economy is struggling, then another huge wave of mortgage defaults could potentially destroy hundreds of small to mid-size banks across the United States.

The big banks would be in prime position to come in and buy many of them up for a song.

You see, this is very similar to what happened during the Great Depression.

During the Great Depression, the financial powers reduced the money supply, tightened credit and hoarded cash.  The U.S. economy seized up and suddenly nobody had any money.  Those who did have money (the financial powers) were in many cases able to come in and buy assets up for pennies on the dollar.

Not that we are expecting an extended deflationary depression this time.  Instead, it is perhaps likely that they are planning a “consolidation phase” before they really blow out the dollar.

In any event, a reduction in the money supply, the tightening of credit and the hoarding of cash by banks is really bad news for the average American because there will be less jobs and less opportunity as the economy slows down.

The following are 4 signs that this is exactly what we are about to see….

#1) The Federal Reserve is in talks with money-market mutual funds on agreements to help drain as much as 1 trillion dollars from the financial system.  The Federal Reserve is reportedly seeking to “withdraw” some of the record monetary stimulus pumped into the U.S. economy to fight the recession.  But when you withdraw stimulus money from the system, what happens?  That’s right – the opposite of stimulus.

#2) There are persistent rumors that Federal Reserve policy makers are plotting a course for a series of interest rate hikes.  Federal Reserve Chairman Ben Bernanke says that the Federal Reserve may raise the discount rate “before long” as part of the “normalization” of Fed lending.  By raising that rate, Bernanke says that the central bank “will be able to put significant upward pressure on all short-term interest rates”.  When the Federal Reserve raises rates, this has a ripple effect throughout the entire economy.  Higher rates mean that credit will tighten and loans will be more expensive for individuals and businesses.  In turn, this will cause the U.S. economy to slow down.

#3) Recent data suggests that there has been a substantial drop in the “real” M3 money supply, and every time that this has happened in the past it has resulted in a drop in economic activity.  In fact, this contraction in the money supply has some economic analysts now saying that it is not a matter of “if” we will have a “double-dip” recession, but of “when” it will occur.

#4) There are also signs that the major U.S. banks are now hoarding cash.  In fact, the biggest banks in the U.S. cut their collective small business lending balance by another $1 billion in November 2009.  That drop was the seventh monthly decline in a row.

So what does all of this mean?

It means that the collapse of the U.S. dollar will be put off for a little while but that the U.S. economy is in for some hard times ahead.

More people are going to lose their jobs and more people are going to lose their homes.

Eventually though, after this apparent “consolidation phase” is over, the U.S. government and the financial powers will swoop in with another round of bailouts and another round of “stimulus packages” to save the day.  Once again they will be hailed as heroes and saviors.

And this current “consolidation phase” does not change the long term forecast at all.  Eventually the U.S. dollar will collapse and the United States will experience hyperinflation in one form or another.

Just not yet.

Will This Generation Of Young Americans Be Able To Make It In Hard Times?

Our recent article entitled “A Record Number Of Young Americans Are Unemployed – Are They Just Lazy Or Are There Simply No Jobs Available?” has generated some absolutely outstanding comments.  We have held back on publishing the best of those comments until now because we wanted to feature them all in one place.  The truth is that this economic downturn is having a disproportionate impact on young Americans.  So why is this?  Well, that is what we want to explore.  In today’s economic climate, it can be very difficult to get that first job.  In fact, in some areas of the U.S. today it is close to impossible to get a great job even if you have tons of experience.  But there are some young Americans who are making it out there and who are doing very well despite what the economy is doing.

Certainly when you talk about any very large group of people there are going to be exceptions.  There are some young adults in America today who are absolutely shining examples of what it means to be a hard working American.  But are they the exceptions or are they the rule?

Some would argue that we have raised a generation that is spoiled, lazy and who expect everything in life to just be handed to them.  Of course one could very easily say that is now true of the American people in general.

The American people have had it so good for so long that most of them have no conception of what it means to suffer.  This is especially true of our young people unfortunately.  But now hard times are coming.

Will our young people be able to make it?

Will we be able to make it?

The following are four excellent comments that were left by readers of this website.  They all make excellent points and they all touched us on an emotional level.  Especially Brian’s story.  Never give up Brian.

After reading the comments below, we encourage you to add your own comments at the end of the article.  Do you think that Americans (especially young Americans) are going to be able to make it through the tough times that are ahead, or are we in really, really big trouble?

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Annie:

I can definitely see many people having temper tantrums. I see it on a small scale now.

I managed a retail establishment last year that is seasonal. All of the employees that the owner hired that were under 40 I had to fire. The first half were lazy obsessively texting internet surfing junkies or illegal aliens I had to fire. Oh boy did they think I was a bitch, but I got the job done, on time and under budget.

The 2 best employees I had was a 40 year old white man and a 65 year old Columbia woman. The man was a class A employee. He made slightly over minimum wage but he was grateful to have a job. Worked anytime I asked him. If I were to call him, he’d be on the next bus to show up for work. Wanted to work, needed to work. Stellar employee. Anytime I get a call in regard to a reference to him, I gave him high accolades.

The Columbian woman, same thing. Showed up on time, dressed professional, spoke professionally on the phone and interact with the customers like a class act.

The Nintendo generation (boy that’s a good one) is full of lazy, obese, low IQ brain dead people. There are few good young people out there, but they are far and few between. When I go to a retail store, I purposely try to pick a register that has a baby boomer working it. If I happen to get a younger man/woman, it’s a joke. They rarely make eye contact and mumble intelligible. I leave the register and don’t even know what they said.

Just to screw with them sometimes I mumble something stupid like I’m being beamed up to Mars after I leave here to see if they’re really paying attention.

The entitlement mentality is the worst. All of these kids want a $100K job or something close. Those days are over unless you get a cushy government job. I’ve been in and out of work for the last 3 years. It’s been rough for me. I’ve worked minimum wage jobs, scavenged for cans and bottles to sell for money, held garage sales, etc…to put food on the table. Many people would think they’re too good to do what I do.

Recent College Graduate:

I recently graduated with a BBA in finance from prestigious university. I wanted to comment of this article because I can completely identify with the subject, in fact, when I saw the picture I laughed to myself and was like that’s me, kinda sad huh. I now live with parents and have no intention of looking for a job. I have been highly motivated my entire life and was well on my way to getting a job in a hedge fund or private equity firm within the oil and gas industry. However a couple months before graduation, something snapped and I became very depressed and lost almost all motivation. I think its because I really woke up the the reality that the the path that the US is on economically speaking is unsustainable. I don’t feel like there is any money to be made anymore. Of course in the short term I could be making about $75,000 a year (typical starting pay for classmates of mine), however I don’t see a point. The dollar will most likely be gone in the next two years and honestly we are on the verge of social and political chaos…I think the best use of my time presently is to prepare myself and get my family prepared for what lies ahead. So from the horses mouth so to speak, as a 22 year old college graduate, that is my opinion.

Brand:

Many recent college grads move back home for two reasons.

First, the education system has become absolutely addicted to debt. Look at the cost of tuition over the last three decades, and then look at the number of loans issued by Sallie Mae. As soon as demand went through the roof, the universities started doubling and tripling tuition rates, while offering in-house consultation on how to maximize student loans. Twenty years ago, most college students didn’t graduate $40-60,000 in the debt.

Second, it’s a tough job market. If you’ve got a tuition payment to make, and you can’t get a job, then it’s reasonable to move back in with mom and dad for a while. That’s what family is for. They have every right to expect you to pull your weight, including doing chores and getting a part-time job to help pay for food and utilities. Of course, when mom and dad get old, they have the right to live at *your* place for a while, at least until they require permanent care.

I don’t dispute that there are a lot of lazy punks out there. I also happen to think that kids go $40-60,000 into debt while majoring in dead-end subjects that offer no chance of repaying their loans. But there are also plenty of responsible young people who get stuck between a rock and a hard place, and there’s nothing wrong with taking a little family help as long as it’s appreciated and repaid in kind.

Just my two cents.

Brian:

I am 31 year old male, but everyone says I look 17-20. I had a son at 18 and never had the money to go to an expensive college to get a degree and got turned down for a federal grant/loan, but I did save and go to community college for paramedic. The above article really bothered me because for years I have been put down by older adults, Friend of court, and places I applied to for work for taking care of my grandparents who have been married almost 60 years, and my mother who has MS. My grandmother has never had a license and my grandfather has had emphysema for 20 years and is on oxygen, and my mother uses a wheel chair or a walker on her good days. (the bad are spent crying in pain in bed, sleeping, or bed ridden for days, sometimes weeks at a time.) FOC says I don’t send enough directly to her and taking care of my family is not a “real” job since I do not pay federal tax’s or get paid a weekly check they can commandeer(that’s a whole other story, I guess they didn’t get the memo that woman are to pass men as family “breadwinners” this year or next.), other older adults say I need to look out for myself and get a real job, and the jobs I do apply for,(to work nights or part time) also say it is not a job and therefore I have a huge employment gap on my resume. I have lived on and off between my grandparents and mothers in Michigan my whole life. I stayed with grandparents because my mom waitress-ed full time at night when I was younger.I do not care what they say, I love my family and will help them no matter what, until they pass or they can afford a home nurse. On the nights and weekends that I don’t have my son, I sit home and reading and learning programming and web design. I am willing to work hard anywhere for any (legal) pay. Everyone complains about everyone else and thinks it is so easy to get a job until it happens to them. I glad I don’t care about money and I do not have anything worth anything, so it can’t be taken away. Maybe all the people who were doing the complaining on the board up there should give me and people like me a chance. We might just be the most kind, loyal, hard working person you ever had working with or for. I just would like to let you know, Not being able to financially support myself makes me feel like a loser and maybe I am just a burden on my family and it would be better of if I just”went away”. If it would not hurt my son and family so much, I would be gone.

Survive After Collapse

Quotes About The Federal Reserve And Central Banking

Our last post, “It Is Now Mathematically Impossible To Pay Off The U.S. National Debt“, has created a ton of controversy and has generated over 100 comments so far.  Much of the discussion has been about the role of the Federal Reserve and how they create money and debt.  The truth is that the Federal Reserve system is a very complex subject that is very difficult to get a handle on.  One thing that the Federal Reserve is NOT is a government agency.  In fact, it is about as “federal” as Federal Express.  It is a private central bank designed to make money for the people who created it.  In fact, the Federal Reserve was the culmination of an effort by the international banking elite to force a permanent private central bank on the American people that began all the way back during the days of our Founding Fathers. 

But don’t just take our word for it. The following are famous quotes about the Federal Reserve and central banking from past presidents, congressmen and other notable historical figures….  

“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.”
-Sen. Barry Goldwater

It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
-Henry Ford

“The regional Federal Reserve banks are not government agencies. …but are independent, privately owned and locally controlled corporations.”
-Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

“The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers.”
-Congressman Louis T. McFadden

“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson.”
-Franklin Delano Roosevelt

“As soon as Mr. Roosevelt took office, the Federal Reserve began to buy government securities at the rate of ten million dollars a week for 10 weeks, and created one hundred million dollars in new [checkbook] currency, which alleviated the critical famine of money and credit, and the factories started hiring people again.”
-Eustace Mullins

“This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized….the worst legislative crime of the ages is perpetrated by this banking and currency bill.”
-Charles A. Lindbergh, Sr. , 1913

“When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money.”
-Putting it simply, Boston Federal Reserve Bank

“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.”
-Congressman Louis T. McFadden in 1932

“The few who understand the system, will either be so interested from it’s profits or so dependent on it’s favors, that there will be no opposition from that class.”
-Rothschild Brothers of London, 1863

“While boasting of our noble deeds were careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery.”
-Horace Greeley

“The Federal Reserve bank buys government bonds without one penny…”
-Congressman Wright Patman, Congressional Record, Sept 30, 1941

“…the increase in the assets of the Federal Reserve banks from 143 million dollars in 1913 to 45 billion dollars in 1949 went directly to the private stockholders of the [federal reserve] banks.”
-Eustace Mullins

“The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money”
-Charles A. Lindbergh Sr., 1923

“Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back.”
-Sir Josiah Stamp, former President, Bank of England

“All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.”
-John Adams

“Whoever controls the volume of money in any country is absolute master of all industry and commerce.”
-James A. Garfield, President of the United States

“A great industrial nation is controlled by it’s system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world–no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.”
-President Woodrow Wilson

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance.”
-James Madison

“I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs.”
-Thomas Jefferson

“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.”
-Abraham Lincoln

“Give me control of a nation’s money and I care not who makes it’s laws”
-Mayer Amschel Bauer Rothschild

Are you starting to get the picture?

The Federal Reserve is at the center of a controversy over central banking that has been around since the very beginning of the United States.  But unfortunately, the Federal Reserve system is so incredibly complex and the American people of today are so uneducated that the vast majority of people out there simply do not even understand enough about what is going on to get upset about anything.

But that is changing.  An increasing number of people are starting to wake up.  Instead of thinking that “we’ll get this debt under control if we could just get the right person in the White House”, more Americans than ever are realizing that it is the Federal Reserve that is the root of our debt problem.

As always, we welcome you to leave a comment with your opinion about the Federal Reserve.  We read every single comment that gets left on this site, and we actually learn a lot from reading them.

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