Most politicians limit their comments about the Federal Reserve to sheer praise. Know thy master. Donald Trump has followed in the footsteps of Ron Paul, with his sharp critique of the FED and harsh words for Janet Yellen in particular.
Donald Trump has put his name firmly on this short list of politicians that dare to criticize the Federal Reserve. He told Yellen that she should be ashamed of herself for politically-motivated actions as FED Chief. In particular, Trump has accused the FED and Yellen of keeping interest rates at super low levels (barely above zero) to help President Obama and Hillary Clinton look better at handling the economy.
Fed chair Yellen said that's absolutely not true in a press conference Wednesday. "We do not discuss politics at our meetings, and we do not take politics into account in our decisions," Yellen said.
Trump also called out the FED for creating a 'fake economy.'
He is right of course. The FED has created artificially low interest rates, injected stimulus, monetized massive amounts of debt and saved the largest banks from their free-market fate of failure. They have created an incredible amount of moral hazard in the process.
The FED creates or at least amplifies the boom/bust economic cycles that devastate masses of middle class citizens, while siphoning away their wealth and concentrating it in the hands of the very few. It just so happens that those on the receiving end are the banking elite and their political cronies.
The FED has created yet another set of massive asset bubbles on the precipice of bursting. They managed to create a huge stock market bubble, real estate bubble, bond bubble, student debt bubble and dollar bubble. The 'recovery' since the last financial crisis of 2008-09 has been driven entirely via manipulation of markets and the inflating of these various assets bubble. It is an unsustainable mirage of a recovery and this monetary experiment ends very badly.
This helps to explain why the FED has been unable to raise rates at anywhere near the trajectory that the market was expecting. At the end of 2014, the Fed was projecting that the Fed Funds rate would be 2.5% by the end of 2016 and 3.625% by the end of 2017. Today, that forecast is just 0.625% and 1.125%.
Trump has gone as far as to say he wants to see audit the FED in his first 100 days in the White House and "replace" Yellen. It usually happens the other way around, whereby the FED chooses the President and "replaces" those that do not obey their orders. But I'd still like to see him try.
But someone needs to question the FED's unconstitutional control of the money supply in the United States. If you want a deeper background of the nefarious origins of the Federal Reserve, I recommend reading "The Creature from Jekyll Island : A Second Look at the Federal Reserve" by G. Edward Griffin.
Book Description: Where does money come from? Where does it go? Who makes it? The money magicians' secrets are unveiled. We get a close look at their mirrors and smoke machines, their pulleys, cogs, and wheels that create the grand illusion called money. A dry and boring subject? Just wait! You'll be hooked in five minutes. Reads like a detective story - which it really is. But it's all true. This book is about the most blatant scam of all history. It's all here: the cause of wars, boom-bust cycles, inflation, depression, prosperity. Creature from Jekyll Island is a "must read." Your world view will definitely change. You'll never trust a politician again - or a banker.
What Does It Mean for Gold Investors?
I think this divisive election season will be bullish for gold prices. Whether it is Clinton's accommodative policies or the instability and uncertainty of a Trump Presidency, it is hard to imagine gold prices going anywhere but up in the months ahead. Some have floated theories of an October surprise by the Clinton political machine to sink Trump just prior to the elections. In a time of crisis, undecided voters are likely to go with the devil they know.
Gold could also see a rush of safe-haven demand from the bursting of any of the asset bubbles that we mentioned. This time around, any single failure could cause a domino effect and produce an economic crisis worse than the one experienced in 2008. Gold may sink initially in a rush to liquidity, but is likely to rocket to new highs shortly after the initial panic.
We are also entering the strongest seasonal months for precious metals. And unfortunately, geopolitical tensions are boiling over globally and race riots are once again exploding on the streets of America.
Even absent any major catalyst, I expect simple supply and demand fundamentals to push gold and silver prices to new highs over the next 12 to 24 months. But any number of black swan events have the potential to launch precious metals' prices into the stratosphere.
I believe it is wise to be positioned before the election, before the strongest seasonal months, before the next financial crisis and well before any of these black swan events materialize. Investors are currently being gifted with a nice pullback in gold and silver prices and excellent opportunity to buy the dip.
Follow our trades, get insider commentary, view our model portfolio, get the monthly contrarian newsletter and much more by becoming a Gold Stock Bull Premium Member today. You can get started for as little at $45 and we offer a 30-day money-back guarantee if you aren't 100% satisfied.
By Jason Hamlin
Source: Gold Stock Bull
Friday, December 2, 2016
Many will have never even questioned just what is this green tinted paper we covet so dearly and in which each of our lives depend on in its diminishing quantities. Money...that stuff we love so much! It can set us free or confine us to a life devoid of food, shelter and clothing. We really have no idea what those paper bills mean!
Here is a little info in the form of a Q&A to begin our journey on WHO issues those notes and how WE have been deceived for far too long.
A: The Federal Reserve System is not Federal; it has no reserves; and it is not a system, but rather, a criminal syndicate. It is the product of criminal syndicalist activity of an international consortium of dynastic families comprising what is commonly termed "The New World Order". The Federal Reserve system is a central bank operating in the United States. Although the student will find no such definition of a central bank in the textbooks of any university, a proper definition would be as follows: It is the dominant financial power of the country which harbors it. It is entirely private-owned, although it seeks to give the appearance of a governmental institution. It has the right to print and issue money, the traditional prerogative of monarchs. It is set up to provide financing for wars. It functions as a money monopoly having total power over all the money and credit of the people.
Q: Are our dollar bills, which carry the label "Federal Reserve notes" government money?
A: Federal Reserve notes are actually promissory notes, promises to pay, rather than what we traditionally consider money. They are interest bearing notes issued against interest bearing government bonds, paper issued with nothing but paper backing, which is known as fiat money, because it has only the fiat of the issuer to guarantee these notes. The Federal Reserve Act authorizes the issuance of these notes "for the purposes of making advances to Federal reserve banks... The said notes shall be obligations of the United States. They shall be redeemed in gold on demand at the Treasury Department of the United States in the District of Columbia." Tourists visiting the Bureau of Printing and Engraving on the Mall in Washington, D.C. view the printing of Federal Reserve notes at this governmental agency on contract from the Federal Reserve System for the nominal sum of .00260 each in units of 1,000, at the same price regardless of the denomination. These notes, printed for a private bank, then become liabilities and obligations of the United States government and are added to our present $8 trillion debt. The government had no debt when the Federal Reserve Act was passed in 1913.
Q: Who owns the stock of the Federal Reserve Banks?
A: The dynastic families of the ruling New World Order, internationalists who are loyal to no race, religion, or nation. They are families such as the Rothschilds, the Warburgs, the Schiffs, the Rockefellers, the Harrimans, the Morgans and others.
Q: Can I buy this stock?
A: No. The Federal Reserve Act stipulates that the stock of the Federal Reserve Banks cannot be bought or sold on any stock exchange. It is passed on by inheritance as the fortune of the elitest class. Almost half of the owners of Federal Reserve Bank stock are not Americans.
Q: Does the Federal Reserve Board control the daily price and quantity of money?
A: The Federal Reserve Board of Governors, meeting in private as the Federal Open Market Committee with presidents of the Federal Reserve Banks, controls all economic activity throughout the United States by issuing orders to buy government bonds on the open market, creating money out of nothing and causing inflationary pressure, or, conversely, by selling government bonds on the open market and extinguishing debt, creating deflationary pressure and causing the stock market to drop.
Q: Can Congress abolish the Federal Reserve System?
A: The last provision of the Federal Reserve Act of 1913, Sec. 30, states, "The right to amend, alter or repeal this Act is expressly reserved." This language means that Congress can at any time move to abolish the Federal Reserve System, or buy back the stock and make it part of the Treasury Department, or to altar the System as it sees fit. It has never done so.
No Congress, no President has been strong enough to stand up to the foreign-controlled Federal Reserve Bank. Yet there is a catch - one that President Kennedy recognized before he was slain - the original deal in 1913 creating the Federal Reserve Bank had a simple backout clause. The investors loaned the United States Government $1 billion. And the backout clause allows the United States to buy out the system for that $1 billion. If the Federal Reserve Bank were demolished and the Congress of the United States took control of the currency, as required in the Constitution, the National Debt would virtually end overnight, and the need for more taxes and even the income tax, itself. Thomas Jefferson was concise in his early warning to the American nation, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
By Working Class Mama
Source: Portland Indymedia