10 Things That Every American Should Know About the Federal Reserve

Posted by Wealth Wire - Thursday, February 9th, 2012

 

What would happen if the Federal Reserve was shut down permanently? 

That is a question that CNBC asked recently, but unfortunately most Americans don't really think about the Fed much. Most Americans are content with believing that the Federal Reserve is just another stuffy government agency that sets our interest rates and that is watching out for the best interests of the American people. But that is not the case at all...

The truth is that the Federal Reserve is a private banking cartel that has been designed to systematically destroy the value of our currency, drain the wealth of the American public and enslave the federal government to perpetually expanding debt. During this election year, the economy is the number one issue that voters are concerned about. But instead of endlessly blaming both political parties, the truth is that most of the blame should be placed at the feet of the Federal Reserve. The Federal Reserve has more power over the performance of the U.S. economy than anyone else does. The Federal Reserve controls the money supply, the Federal Reserve sets the interest rates and the Federal Reserve hands out bailouts to the big banks that absolutely dwarf anything that Congress ever did. If the American people are ever going to learn what is really going on with our economy, then it is absolutely imperative that they get educated about the Federal Reserve.

The following are 10 things that every American should know about the Federal Reserve....

#1 The Federal Reserve System Is A Privately Owned Banking Cartel

The Federal Reserve is not a government agency.
The truth is that it is a privately owned central bank. It is owned by the banks that are members of the Federal Reserve system. We do not know how much of the system each bank owns, because that has never been disclosed to the American people.

The Federal Reserve openly admits that it is privately owned. When it was defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve stated unequivocally in court that it was "not an agency" of the federal government and therefore not subject to the Freedom of Information Act.

In fact, if you want to find out that the Federal Reserve system is owned by the member banks, all you have to do is go to the Federal Reserve website....

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

Foreign governments and foreign banks do own significant ownership interests in the member banks that own the Federal Reserve system. So it would be accurate to say that the Federal Reserve is partially foreign-owned.

But until the exact ownership shares of the Federal Reserve are revealed, we will never know to what extent the Fed is foreign-owned.

#2 The Federal Reserve System Is A Perpetual Debt Machine

As long as the Federal Reserve System exists, U.S. government debt will continue to go up and up and up.
This runs contrary to the conventional wisdom that Democrats and Republicans would have us believe, but unfortunately it is true.

The way our system works, whenever more money is created more debt is created as well.
For example, whenever the U.S. government wants to spend more money than it takes in (which happens constantly), it has to go ask the Federal Reserve for it. The federal government gives U.S. Treasury bonds to the Federal Reserve, and the Federal Reserve gives the U.S. government "Federal Reserve Notes" in return.  Usually this is just done electronically.

So where does the Federal Reserve get the Federal Reserve Notes?

It just creates them out of thin air.

Wouldn't you like to be able to create money out of thin air?

Instead of issuing money directly, the U.S. government lets the Federal Reserve create it out of thin air and then the U.S. government borrows it.

Talk about stupid.
When this new debt is created, the amount of interest that the U.S. government will eventually pay on that debt is not also created.

So where will that money come from?

Well, eventually the U.S. government will have to go back to the Federal Reserve to get even more money to finance the ever expanding debt that it has gotten itself trapped into.

It is a debt spiral that is designed to go on perpetually.
You see, the reality is that the money supply is designed to constantly expand under the Federal Reserve system. That is why we have all become accustomed to thinking of inflation as "normal".

So what does the Federal Reserve do with the U.S. Treasury bonds that it gets from the U.S. government?
Well, it sells them off to others. There are lots of people out there that have made a ton of money by holding U.S. government debt.

In fiscal 2011, the U.S. government paid out 454 billion dollars just in interest on the national debt.

That is 454 billion dollars that was taken out of our pockets and put into the pockets of wealthy individuals and foreign governments around the globe.

The truth is that our current debt-based monetary system was designed by greedy bankers that wanted to make enormous profits by using the Federal Reserve as a tool to create money out of thin air and lend it to the U.S. government at interest.

And that plan is working quite well.
Most Americans today don't understand how any of this works, but many prominent Americans in the past did understand it.

For example, Thomas Edison was once quoted in the New York Times as saying the following...

That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.

Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.

We should have listened to men like Edison and Ford.
But we didn't.
And so we pay the price.

On July 1, 1914 (a few months after the Fed was created) the U.S. national debt was 2.9 billion dollars.
Today, it is more than more than 5000 times larger.

Yes, the perpetual debt machine is working quite well, and most Americans do not even realize what is happening.

#3 The Federal Reserve Has Destroyed More Than 96% Of The Value Of The U.S. Dollar

Did you know that the U.S. dollar has lost 96.2 percent of its value since 1900? Of course almost all of that decline has happened since the Federal Reserve was created in 1913.

Because the money supply is designed to expand constantly, it is guaranteed that all of our dollars will constantly lose value.

Inflation is a "hidden tax" that continually robs us all of our wealth. The Federal Reserve always says that it is "committed" to controlling inflation, but that never seems to work out so well.

And current Federal Reserve Chairman Ben Bernanke says that it is actually a good thing to have a little bit of inflation. He plans to try to keep the inflation rate at about 2 percent in the coming years.

So what is so bad about 2 percent? That doesn't sound so bad, does it?

Well, just consider the following excerpt from a recent Forbes article....
The Federal Reserve Open Market Committee (FOMC) has made it official:  After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.

#4 The Federal Reserve Can Bail Out Whoever It Wants To With No Accountability

The American people got so upset about the bailouts that Congress gave to the Wall Street banks and to the big automakers, but did you know that the biggest bailouts of all were given out by the Federal Reserve?

Thanks to a very limited audit of the Federal Reserve that Congress approved a while back, we learned that the Fed made trillions of dollars in secret bailout loans to the big Wall Street banks during the last financial crisis.  They even secretly loaned out hundreds of billions of dollars to foreign banks.

According to the results of the limited Fed audit mentioned above, a total of $16.1 trillion in secret loans were made by the Federal Reserve between December 1, 2007 and July 21, 2010.

The following is a list of loan recipients that was taken directly from page 131 of the audit report....
Citigroup - $2.513 trillion
Morgan Stanley - $2.041 trillion
Merrill Lynch - $1.949 trillion
Bank of America - $1.344 trillion
Barclays PLC - $868 billion
Bear Sterns - $853 billion
Goldman Sachs - $814 billion
Royal Bank of Scotland - $541 billion
JP Morgan Chase - $391 billion
Deutsche Bank - $354 billion
UBS - $287 billion
Credit Suisse - $262 billion
Lehman Brothers - $183 billion
Bank of Scotland - $181 billion
BNP Paribas - $175 billion
Wells Fargo - $159 billion
Dexia - $159 billion
Wachovia - $142 billion
Dresdner Bank - $135 billion
Societe Generale - $124 billion
"All Other Borrowers" - $2.639 trillion

So why haven't we heard more about this?
This is scandalous.

In addition, it turns out that the Fed paid enormous sums of money to the big Wall Street banks to help "administer" these nearly interest-free loans...
.
Not only did the Federal Reserve give 16.1 trillion dollars in nearly interest-free loans to the "too big to fail" banks, the Fed also paid them over 600 million dollars to help run the emergency lending program.  According to the GAO, the Federal Reserve shelled out an astounding $659.4 million in "fees" to the very financial institutions which caused the financial crisis in the first place.

Does reading that make you angry?

It should.

#5 The Federal Reserve Is Paying Banks Not To Lend Money

Did you know that the Federal Reserve is actually paying banks not to make loans?
It is true.

Section 128 of the Emergency Economic Stabilization Act of 2008 allows the Federal Reserve to pay interest on "excess reserves" that U.S. banks park at the Fed.

So the banks can just send their cash to the Fed and watch the money come rolling in risk-free.
So are many banks taking advantage of this?

You tell me.  Just check out the chart below. The amount of "excess reserves" parked at the Fed has gone from nearly nothing to about 1.5 trillion dollars since 2008....

But shouldn't the banks be lending the money to us so that we can start businesses and buy homes?
You would think that is how it is supposed to work.
Unfortunately, the Federal Reserve is not working for us.
The Federal Reserve is working for the big banks.
Sadly, most Americans have no idea what is going on.

Another example of this is the government debt carry trade.

Here is how it works.  The Federal Reserve lends gigantic piles of nearly interest-free cash to the big Wall Street banks, and in turn those banks use the money to buy up huge amounts of government debt. Since the return on government debt is higher, the banks are able to make large profits very easily and with very little risk.

This scam was also explained in a recent article in the Guardian....

Consider this: we pretend that banks are private businesses that should be allowed to run their own affairs. But they are the biggest scroungers of public money of our time. Banks are lent vast sums of money by central banks at near-zero interest. They lend that money to us or back to the government at higher rates and rake in the difference by the billion. They don't even have to make clever investments to make huge profits.

That is a pretty good little scam they have got going, wouldn't you say?

#6 The Federal Reserve Creates Artificial Economic Bubbles That Are Extremely Damaging

By allowing a centralized authority such as the Federal Reserve to dictate interest rates, it creates an environment where financial bubbles can be created very easily.

Over the past several decades, we have seen bubble after bubble. Most of these have been the result of the Federal Reserve keeping interest rates artificially low. If the free market had been setting interest rates all this time, things would have never gotten so far out of hand.

For example, the housing crash would have never been so horrific if the Federal Reserve had not created such ideal conditions for a housing bubble in the first place. But we allow the Fed to continue to make the same mistakes.

Right now, the Federal Reserve continues to set interest rates much, much lower than they should be. This is causing a tremendous misallocation of economic resources, and there will be massive consequences for that down the line.

#7 The Federal Reserve System Is Dominated By The Big Wall Street Banks

Even since it was created, the Federal Reserve system has been dominated by the big Wall Street banks.
The following is from a previous article that I did about the Fed....

The New York representative is the only permanent member of the Federal Open Market Committee, while other regional banks rotate in 2 and 3 year intervals. The former head of the New York Fed, Timothy Geithner, is now U.S. Treasury Secretary. The truth is that the Federal Reserve Bank of New York has always been the most important of the regional Fed banks by far, and in turn the Federal Reserve Bank of New York has always been dominated by Wall Street and the major New York banks.

#8 It Is Not An Accident That We Saw The Personal Income Tax And The Federal Reserve System Both Come Into Existence In 1913

On February 3rd, 1913 the 16th Amendment to the U.S. Constitution was ratified.  Later that year, the United States Revenue Act of 1913 imposed a personal income tax on the American people and we have had one ever since.

Without a personal income tax, it is hard to have a central bank. It takes a lot of money to finance all of the government debt that a central banking system creates.

It is no accident that the 16th Amendment was ratified in 1913 and the Federal Reserve system was also created in 1913.

They have a symbiotic relationship and they are designed to work together.
We could fill Congress with people that are committed to ending this oppressive system, but so far we have chosen not to do that.

So our children and our grandchildren will face a lifetime of debt slavery because of us.
I am sure they will be thankful for that.

#9 The Current Federal Reserve Chairman, Ben Bernanke, Has A Nightmarish Track Record Of Incompetence

The mainstream media portrays Federal Reserve Chairman Ben Bernanke as a brilliant economist, but is that really the case?
Let's go to the videotape.
The following is an extended excerpt from an article that I published previously....
----------
In 2005, Bernanke said that we shouldn't worry because housing prices had never declined on a nationwide basis before and he said that he believed that the U.S. would continue to experience close to "full employment"....

"We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."

In 2005, Bernanke also said that he believed that derivatives were perfectly safe and posed no danger to financial markets....

"With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly."

In 2006, Bernanke said that housing prices would probably keep rising....
"Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise."

In 2007, Bernanke insisted that there was not a problem with subprime mortgages....
"At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency."

In 2008, Bernanke said that a recession was not coming....
"The Federal Reserve is not currently forecasting a recession."
A few months before Fannie Mae and Freddie Mac collapsed, Bernanke insisted that they were totally secure....

"The GSEs are adequately capitalized. They are in no danger of failing."
For many more examples that demonstrate the absolutely nightmarish track record of Federal Reserve Chairman Ben Bernanke, please see the following articles....
*"Say What? 30 Ben Bernanke Quotes That Are So Stupid That You Won’t Know Whether To Laugh Or Cry"
*"Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally Incompetent?"
But after being wrong over and over and over, Barack Obama still nominated Ben Bernanke for another term as Chairman of the Fed.
----------
#10 The Federal Reserve Has Become Way Too Powerful

The Federal Reserve is the most undemocratic institution in America.

The Federal Reserve has become so powerful that it is now known as "the fourth branch of government", but there are less checks and balances on the Fed than there are on the other three branches.

The Federal Reserve runs the U.S. economy but it is not accountable to the American people. We can't vote those that run the Fed out of office if we do not like what they do.

Yes, the president appoints those that run the Fed, but he also knows that if he does not tread lightly he won't get the money from the big Wall Street banks that he needs for his next election.

Thankfully, there are a few members of Congress that are complaining about how much power the Fed has. For example, Ron Paul once told MSNBC that he believes that the Federal Reserve is now actually more powerful than Congress.....

"The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress."

As members of Congress such as Ron Paul have started to shed some light on the activities of the Federal Reserve, that has caused many in the mainstream media to come to the defense of the Fed.

For example, a recent CNBC article entitled "If The Federal Reserve Is Abolished, What Then?" makes it sound like there is absolutely no other rational alternative to having the Federal Reserve run our economy.

But this is not what our founders intended.
The founders did not intend for a private banking cartel to issue our money and set our interest rates for us.
According to Article I, Section 8 of the U.S. Constitution, the U.S. Congress has been given the responsibility to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures".

So why is the Federal Reserve doing it?
But the CNBC article mentioned above makes it sound like the sky would fall if control of the currency was handed back over to the American people.

At one point, the article asks the following question....
"How would the U.S. economy then function? Something has to take its place, right?"

No, the truth is that we don't need anyone to "manage" our economy.
The U.S. Treasury could be in charge of issuing our currency and the free market could set our interest rates.
We don't need to have a centrally-planned economy.
We aren't China.

And it goes against everything that our founders believed to be running up so much government debt.

For example, Thomas Jefferson once declared that if he could add just one more amendment to the U.S. Constitution it would be a ban on all government borrowing....
I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.

Oh, how things would have been different if we had only listened to Thomas Jefferson.

Please share this article with as many people as you can. These are things that every American should know about the Federal Reserve, and we need to educate the American people about the Fed while there is still time.

*Post courtesy of the Economic Collapse Blog.

http://www.wealthwire.com/news/economy/2666

Poofness, 11-6-11…

Greetings and Salutations

Momentarily, it will be publicly clear. The dutch news paper article I put in last week slipped thru and 'they' covered it as quickly as possible, til they got it pulled and according to folks in the rafters, the author got a 'visit'...about talking outside of school. Basically, the man told what was about to happen. Something I was always told to keep to myself and only refer to it by innuendo. Never naming people involved. The guilty are guilty and that's all there is to it and they know who they are, so will you.

Even the europeans couldn't refrain from mentioning the chinese influence taking place to solve the euro crisis. Goldman Sachs has already been attached to the greek problem; "oh what webs we weave, when we practice to deceive". 600t in worthless paper! And the bankers want compensated, I don't think so. Especially when they conspired to create them to get all the money being released into this world. This happened after everyone was backslapping after the brussels mtgs when the rules were being laid down a few years ago and they became utterly aware of the 'global settlements'. Bankers problems will no longer be solved on the backs of the common man again, we're being taken back to real banking. Basel 3 is making them all keep some money in their banks to cover the deals they want to make. They don't like that, but those ar e the new rules of modern banking. The can always quit and let someone honest fill the position. Is that so hard?

Good news; major transactions took place this past week, that has put the ball squarely in our court. And has changed the future of planet earth and her inhabitants. People will get something at their frontdoors who aren't even expecting anything...something akin to the old program when Mr Anthony used show up at people's door giving them a check for 1m dollars. The 'fix' has been done for the elderly and the children so they don't fall thru the cracks....again. The plutocrats will have to work a full week after this, no more 3 day a week work schedules. The owners will be making these ceos work for a living again. Some will be black balled and not be allowed back into the money business again. The 20th century behavior ends now. I understand that's 'hard cheese' for some but it had to end sometime. No need to revert to fear , take the opportunity to sit and reflect on your choices for the future. Blow your nose and clear your head, the utter differences, will take some getting used to, no doubt. Politicians will be confronted with their own choices, and I don't know how many will survive this, I submit there will be some surprises. What will bar attorneys do when there's no courts for them to bring in frivolous law suits?

Each one will take responsibility for their own existence, mothers will be kicking the children out of the nest. The species must grow up find out the world doesn't operate like the fairy tales we were all told, growing up. The curtain is being taken down even as I type. Don't be frustrated, changing the world, didn't happen over night. So much has been fluid as the moment arrived to punch that final button and flush the old down the toilet but never did they stop to cause this all to happen....with out killing anyone. Some were allowed to take their own selves out...but that was their own choice...free will clause. Some just couldn't see the world continuing without them being in control of something in it. They would rather 'rule' in hell, than serve in heaven. Stop asking 'why' people do this or not, they do what they do because they can. No harder to figure than that. This will no longer be about having faith and believing in stuff, you will be provided enough information so you 'know'...just like making hardboiled eggs.

As I understand things, that's it for me, the rest(info) will come directly to you via your own television sets or radios, then the internet will kick in. Have fun, enjoy your future and spread the blessings.

Thank you all for paying attention and using your grey matter for more than some way to hold your skull in place, much will be expected of you.

Love and Kisses; 'Poofness'
'not gay...to you aussies wondering who poof is.

White Hats Report #30 October 11, 2011

BUSH: THE MEN FROM OZ AND PINOCCHIO’S MAKER.

From the beginning of George H.W. Bush's failed Presidency, United States politics have taken a serious turn for the worse and has plummeted into a crime in office. As we have been reporting Bush Senior's personal greed, corruption and mutual self interest are supported by crooked bankers and Wall Street Cronies. They steal and siphon the wealth from you, the trusting, but betrayed American taxpayers and patriotic allies. From his start Senior has made sure that each individual appointed to a key Government or Agency Office is bought and compromised to maintain control in blocking all inquiries into his world of criminal activities. Senior is still the architect of the United States ethical demise and is the Godfather of Political corruption. From his partnership with the Clinton's through his current control of President Obama, a bought and leashed man.

The White Hats have been unraveling the truth in this sordid shameful criminal cabal, exposing them, and helping to restore America’s future. You only need to read our past reports to see the criminal activities that are currently going on in all levels of our government, but the following is our current status.

For the last few months a team of patriotic individuals have been working quietly with the leaders of the world to develop a solution that will correct and repair the extreme damage done to the Global financial system by the dark cabal, corrupt bankers, and Wall Street. A lot of progress has been made, which will save Europe from its anticipated financial collapse and implement a long term solution for America. This behind-the-scenes activity will not only correct our financial institutions but will assist in the required and necessary corrections of the Federal Reserve System. The solutions will put Americans back to work manufacturing products and create jobs. Notwithstanding, at every step of the way Bush Senior continues to use Obama, the Clinton's, Geithner and other cohorts like pawns, to continue to interfere and derail any solutions to this financial crisis. Their goal is to collapse the world financially, rush in and take whatever is left to fulfill their own greed and narcissism. The Bush family in the last few weeks has started to pack up and transport their stolen riches and personal belongings to their 100,000 acre hide away haven in Paraguay, South America, with other well known worldly criminals. Their narcissism blinds them to the reality that the world will locate them and seek redress in any way possible. The citizens of the world demanding the right to protest may just be the advance guard of a groundswell of enraged public who will demand justice and as we have stated “rightfully and deservedly so”.

The truth to remember is that Bush Senior is pulling the strings and that Obama is his Pinocchio. Bush Senior has told and encouraged Obama to steal and fill his own coffers as long as he follows orders. Bush Senior wants Obama's actions to divert all of the attention off of himself. Do not take your eyes off either of these miscreants. Remember, the greatest trick of evil is to convince the world that evil does not exist. Bush Senior has been tricking us of this for a great many years; tricking us to never look for the evil behind the curtain.

To obscure the truth, listed below are the cronies Obama was allowed to surrounding himself with. Obama either does not care or does not realize how he is being manipulated. His greed has blinded him and made him nothing more than a fall guy, the scape goat, the front man and expendable. Remember Bush Seniors history in the CIA taught him how to control and leverage people. Obama's greed and strong narcissistic personality made it very easy. Please review the list below for Obama’s Cronies … the people advising and working for the President of our United States.
• Richard Holbrooke, Afghanistan Czar, Ultra liberal anti-gun former Gov. Of New Mexico. Pro Abortion and legal drug use. Dissolve the 2nd Amendment
• Ed Montgomery, Auto recovery Czar, Black radical anti-business activist. Affirmative Action and Job Preference for blacks. Univ. of Maryland Business School Dean teaches US business has caused world poverty. ACORN board member. Communist DuBois Club member.
• Jeffrey Crowley, AIDS Czar, Radical Homosexual.. A Gay Rights activist. Believes in Gay Marriage and especially, a Special Status for homosexuals only, including complete free health care for gays.
• Alan Bersin, Border Czar, The former failed superintendent of San Diego . Ultra Liberal friend of Hilary Clinton. Served as Border Czar under Janet Reno - to keep borders open to illegals without interference from US
• David J. Hayes, California Water Czar, Sr. Fellow of radical environmentalist group, "Progress Policy". No training or experience in water management whatsoever.
• Ron Bloom, Car Czar, Auto Union worker. Anti-business & anti-nuclear. Has worked hard to force US auto makers out of business. Sits on the Board of Chrysler which is Auto Union owned. How did this happen?
• Dennis Ross, Central Region Czar, Believes US policy has caused Mid East wars. Obama apologist to the world. Anti-gun and completely pro-abortion.
• Lynn Rosenthal, Domestic Violence Czar, Director of the National Network to End Domestic Violence. Vicious anti male feminist. Supported male castration. Imagine?
• Gil Kerlikowske, Drug Czar, Devoted lobbyist for every restrictive gun law proposal, Former Chief of Police in Liberal Seattle. Believes no American should own a firearm. Supports legalization of all drugs
• Paul Volcker, Economic Czar, Head of Fed Reserve under Jimmy Carter when US economy nearly failed. Obama appointed head of the Economic Recovery Advisory Board which engineered the Obama economic disaster to US economy. Member of anti-business "Progressive Policy" organization
• Carol Brower, Energy and Environment Czar, Political Radical Former head of EPA - known for anti-business activism. Strong anti-gun ownership.
• Joshua DuBois, Faith Based Czar, Political Black activist-Degree in Black Nationalism. Anti-gun ownership lobbyist. WHAT THE HELL DOES A FAITH BASED CZAR DO???????????
• Cameron Davis, Great Lakes Czar, Chicago radical anti-business environmentalist. Blames George Bush for "Poisoning the water that minorities have to drink." No experience or training in water management. Former ACORN Board member (what does that tell us?)
• Van Jones, Green Jobs Czar(Since resigned), Black activist Member of American communist Party and San Francisco Communist Party who said Geo Bush caused the 911 attack and wanted Bush investigated by the World Court for war crimes. Black activist with strong anti-white views.
• Daniel Fried, Guantanamo Closure Czar, Human Rights activist for Foreign Terrorists. Believes America has caused the war on terrorism. Believes terrorists have rights above and beyond Americans.
• Nancy-Ann DeParle, Health Czar, Former head of Medicare / Medicaid. Strong Health Care Rationing proponent. She is married to a reporter for The New York Times.
• Vivek Kundra, Information Czar, Born in New Delhi , India . Controls all public information, including labels and news releases. Monitors all private Internet emails. (Hello?)
• Todd Stern, International Climate Czar, Anti-business former White House chief of Staff- Strong supporter of the Kyoto Accord. Pushing hard for Cap and Trade. Blames US business for Global warming. Anti- US business prosperity.
• Dennis Blair, Intelligence Czar, Ret. Navy. Stopped US guided missile program as "provocative". Chair of ultra-liberal "Council on Foreign Relations" which blames American organizations for regional wars.
• George Mitchell, Mideast Peace Czar, Fmr. Sen. from Maine Left wing radical. Has said Israel should be split up into "2 or 3 " smaller more manageable plots". (God forbid) A true Anti-nuclear anti-gun & pro homosexual "special rights" advocate.
• Kenneth Feinberg, Pay Czar, Chief of Staff to TED KENNEDY. Lawyer who got rich off the 911 victims payoffs. (horribly true)
• Cass Sunstein, Regulatory Czar, Liberal activist judge believes free speech needs to be limited for the "common good". Essentially against 1st amendment. Rules against personal freedoms many times like private gun ownership and right to free speech. This guy has to be run out of Washington !!
• John Holdren, Science Czar, Fierce ideological environmentalist, Sierra Club, Anti-business activist. Claims US business has caused world poverty. No Science training.
• Earl Devaney, Stimulus Accountability Czar, Spent career trying to take guns away from American citizens. Believes in Open Borders to Mexico . Author of statement blaming US gun stores for drug war in Mexico.
• J. Scott Gration, Sudan Czar, Native of Democratic Republic of Congo . Believes US does little to help Third World countries. Council of foreign relations, asking for higher US taxes to support United Nations.
• Herb Allison, TARP Czar, Fannie Mae CEO responsible for the US recession by using real estate mortgages to back up the US stock market. Caused millions of people to lose their life savings.
• John Brennan, Terrorism Czar, Anti CIA activist. No training in diplomatic or Gov. affairs. Believes Open Borders to Mexico and a dialog with terrorists and has suggested Obama disband US military A TOTAL MORON !!!!!
• Aneesh Chopra, Technology Czar, No Technology training. Worked for the Advisory Board Company, a health care think tank for hospitals. Anti-doctor activist. Supports Obama Health care Rationing and salaried doctors working exclusively for the Gov. health care plan.
• Adolfo Carrion Jr., Urban Affairs Czar, Puerto Rican born Anti American activist and leftist group member in Latin America . Millionaire "slum lord" of the Bronx , NY. Owns many lavish homes and condos which he got from "sweetheart" deals with labor unions. Wants higher taxes on middle class to pay for minority housing and health care.
• Ashton Carter, Weapons Czar, Leftist. Wants all private weapons in US destroyed. Supports UN ban on firearms ownership in America .. No Other "policy".
• Gary Samore, WMD Policy Czar, Former US Communist. Wants US to destroy all WMD unilaterally as a show of good faith. Has no other "policy".

Again, remember the cabal will do anything to maintain control and upon studying the above appointments they have done a good job.

Currently in Washington, the Department of Injustice is under attack. House Committee Chairman Lamar Smith (R) Texas has asked the President to appoint a Special Investigating Counsel to investigate if Eric Holder lied about his knowledge or participation with the Gunrunning Project Fast and Furious. Any White House Appointee will be just another Whitewash clone. Holder is a made man in place to blatantly deny, lie and obfuscate truth or investigations. Justice died on his watch and Americans did what? The world looks at us with contempt.

It was now revealed that over $16 Trillion dollars have been cross loaned to a collective series of US and Foreign banks. Neither Congress nor the Senate were consulted. The Government Accounts Office is holding records, which deserves auditing in Congress. The scale of loans to these reckless banks shows money flowing out recklessly in loan volumes many times greater than the base asset value of the banks concerned. This money should have gone to the creation of American jobs and the Global Settlements owed. Citibank was given $2.513T. Morgan Stanley borrowed $2.034T. Merrill Lynch was given $1.94T. Bank of America, laying off tens of thousands of employees, and charging outrageous fees, is back for another $1.34T. And, not to be outdone, Goldman Sachs is out for $814B. We find foreign loans way beyond the value of the banks concerned. Why was Barclay's Bank given $864B? Royal Bank of Scotland $541B? Deutsche Bank, operating vehicle of the criminal cabal Josef Ackermann took $354B. $16 Trillion Dollars of Debt has been incurred yet again on the American Taxpayer.

All these secret money trading programs have denied funds owed to many patriotic US citizens and Global allies. Deals have been completed, transactions made and traded unreported in countries which by law should have benefited from applicable tax revenue. These territorial accounts have been exposed and will be pursued by Governments, Revenue Recovery Agencies, and a developing hostile global media, which will cause Billions or possible Trillions in Tax demands. With the truth being unleashed, retribution will follow.

Time is short. The world leaders have been given a solution. The world understands the Bush Cabal is controlling Obama and Geithner. Only one option exists to follow through with the solution that will correct and repair the extensive damage done to the Global financial system by Bush Senior and his Dark Cabal.

World Leaders: You are very clear as to what the problems are. It is time to make the tough choices and force your resolve. We anticipate your immediate responses via arrests and open trials of the criminals we speak of.

White Hats Reports #23 - July 22, 2011

Progress Update:  Murdoch News; Patriots send letter to US Treasury, Senate, House and Obama to save America; The Tropos Files.

In White Hats Report #22, we spoke to the issues of a Bilderberg  member interfering in the media exposure of the Bush and Ackerman stories in Germany and America.  We told you the information was highly explosive and we also told you to “Expect much more on this”.

When White Hat Report #22 came out the world was on the verge of tipping to one side or the other … the world was going to have to start to change or it was going to succumb.  The arrogance of the Cabal was immense and running rampant.  Now with our friend Rupert taking a tumble, the world is starting to change for the better and the Cabal is in deep shock and very quiet.   Do they leave Rupert in the dust to survive or do they come into the light to help him out?  We are seeing the World that can only take so much. We are seeing when the pimple is ready to pop it will distort the view for a bit of time but in the end the blemish will heal.  You just need the ability to open the blemish up and air it out.

Thank You to the United Kingdom for having the outright fortitude to withstand the trauma of Rupert Murdoch and News Corp.  We hope the lives of the men and women who acted as the whistleblowers mean something very dear to you and that you will remember what they have done to keep the free world safe and strong.  Remember them by listening to the people of the world and not the individuals like Murdoch that have aspirations above and beyond humanity.  We do not need this type of individual’s tyranny in the world especially when a person of such supposed esteem is the culprit of such blasphemy against the human race.

So, about the whistleblowers, they did not die from natural causes.  That would be like saying the second airplane hit the World Trade Towers was also a mere coincidence.  To our friends in the United Kingdom, if your Medical Examiners are not proficient with the methods of disposing of someone when the going gets tough, then terminate the guy and allow us to do the autopsy.  We know the methods and the chemicals used for such an activity and can identify the source immediately.

You have a significant problem with the Bildeberg’s thinking they can “handle” the problem by eliminating … killing someone … to keep them from exposing the information.  Just look around at all of the deaths surrounding this already, and in a few short hours look how much has developed and the horn has barely sounded. “Do you think there is a problem?” Well Rupert, there are more whistleblowers.  You will not be able to remove them all.  The target is you and the treasonous things you have done to humanity including controlling the information you have sworn to pass to the world at large.

For the audience, sit back and watch the fireworks.  Rupert, his son, his Board of Directors, his Executives and all of the people they have corrupted have never gone down this path before so let them make all of the statements they want about humility and not knowing . Going on record is always interesting especially if you think you have everything under control.  So, Rupert, the next time we say “Expect much more on this” pull up a seat on the curb…the parade is about to start.

As a final thought … Expect much more on this!

In Addition …

This report is also developed to update our readers on the current events involving the Global Settlements and other United States Treasury obligations.

In reference to the United States Debt problem, patriotic Americans have continued to offer solutions to the most inner circles of Washington D.C.  All leaders of the House of Representative, Senate, the Obama administration, world leaders and the G8/G20 members know that there is no reason to consider raising the US Debt ceiling.  All the US speeches and scare tactics are political positioning and nothing else.   Below is a letter delivered to the inner circle of Senators, Representatives, US Treasury and the Obama administration.  Although this letter was recently leaked to the internet without the permission of the writer, we have received permission to include it below.

[http://www.scribd.com/doc/60397978/Lindell-H-Bonney-Jr-July-7-2011]

This letter is simple and to the point.  As you can see the letter references the undisputed obligation that the US Treasury has to pay.   These obligations are the result of many years of criminal activities in stealing funds by the US Treasury to support and fill the pockets of the Dark Criminal Cabal, the Bushes, Clintons, Obama and many associates in hopes of controlling the world through building a New World Order.   In previous reports we have exposed the large amount of funds stolen by these thieves and deposited in financial institutions like Deutsche Bank, Barclays Bank, The Vatican Bank, Bank of Santander, and other international Banks in the Caribbean and South America.   Regardless of how the funds were stolen, the US Treasury owes these obligations.  The individuals listed in the letter have all agreed to pay US Fed Taxes upon the US Treasury paying their obligations, which will almost pay off our national debt.  These Patriots will also be investing their funds back into America and the World’s financial system to rebuild the global economies for generations to come.  These Patriots are givers and not takers.  They are very serious men with the fortitude to do what is right … by any standard.

We have explained in previous reports some of the reasons why the past and present administrations have refused to pay these obligations, the most important being their greed to fatten their personal bank accounts.  They have stolen Trillions of Dollars of funds over the last 20+ years that were intended to be invested in America.  These criminals, our elected leaders and appointed officials, are so narcissistic that they would do anything to maintain their control over America and the World.   What level of Hell is awaiting these criminals?  Fortunately, their greed and narcissistic tendencies have blinded them.

The White Hats have exposed and will continue to expose these individuals.   With the help of all the patriotic citizens and readers in the United States and the world, this Dark Cabal is coming to an end. But we can only do so much if the people of the United States and the World EXPECT CHANGE.  Then….DEMAND CHANGE … and MAKE THEM ACCOUNTABLE or PUT THEM OUT OF OFFICE.

Below are additional updates to the events in the last two weeks.

THE FALCONE FILES:

Falcone reports that following the notification to Price Waterhouse PLC London regarding the mismanagement by Barclays Bank of the Falcone transaction, Josef Ackermann,  Chairman of the Board of Directors of Deutsche Bank, with the clearance of the U.S. government, had two people dispatched to start following and monitoring Falcone. These actions come not as a surprise because Mr. Falcone's phones have already been tapped and there are severe consequences ahead for Mr. Ackermann, his associates, and Deutsch Bank.   Currently Mr. Falcone is acquiring the original Wikileaks tapes as filed prior to the tampering and blocking by the United States government. The original tapes contain and demonstrate incriminating information for Josef Ackermann, the C.I.A. and others. Falcone's matters are addressed in the tapes including certain information regarding payouts in CHIPS that were directed to Mr. Falcone that he never received. The original Wikileak documents and reports further collaborate and confirm the information The White Hats have reported previously.   After the review of these tapes and documents by Mr. Falcone's attorneys, additional and appropriate lawsuits will follow.

THE WANTA FILES:

A lot of people have heard of Leo Wanta's situation over the past several years through various internet sites, which over time has confused the basic truth that the Eastern District Court of Virginia Case #1:07CV609,  by Writ of Mandamus, ordered the United States Government to pay 4.5 Trillion Dollars to Leo Wanta. Leo Wanta has agreed to pay 35% taxes to the US Treasury on the total amount owed, which equal $1.575 Trillion in Federal Taxes.   You may find it helpful to review the Wanta documents posted on our site.

THE TROPOS FILES:

Banking and Politics in the New Millennium:  Lie! Cheat! Steal! Lie some more! Consequences are for the ‘Other Guy’: A Solution to the Debt Ceiling Crisis.

Yes, economies are in free fall propped up only by lies, damn lies, and statistics.  The most precious commodity of all, the “Confidence of the ordinary person,” is being assailed daily. When that “Confidence” tips, it’s all over. When it occurs it will be swift and merciless and we will enter the Hobbsian state of nature, “nasty, brutish, and short.”  The deluded architects of the New World Order may succeed in crumbling economies but have yet to understand that lording over a decimated population who will not willingly create or contribute to society is a sour, empty “victory.”  They will spend more time in fear and in fighting than in enjoying the”good life.” What were they thinking?

In our last posting, we indicated the Dark Cabal’s world is falling apart. And it is. The US debt ceiling crisis and the corresponding likelihood of a US default will mean the evaporation of much of the ‘wealth’ these insiders think they have accumulated. The brinkmanship games on the debt ceiling have necessitated a rescue package of some sort to help soothe the Confidence jitters of the ordinary Joe. But where is it?

Well, it’s been in front of their faces for years. Release funds that have been hijacked and stolen, to their rightful owners and collect the taxes owed. Duh!

Recently, letters from Lindell H. Bonney, Sr., paymaster of the Global Settlements, have circulated to Senators and Congressmen in DC showing that the potential taxes to be collected on just a few of the “thefts in high places” would eliminate the US deficit, and much of its debt, in one fell swoop.

The amount of these thefts is staggering. It’s hard to believe there was that much money and that it could be stolen. Perhaps that is the point. Since supposedly no one would believe it, it couldn’t possibly happen. Much has already been written on Wanta’s funds elsewhere, and the White Hats have written extensively about Falcone’s funds. Today we expose another.

Take the Tropos Capital Corporation (“Tropos”) scenario, for example. In 2004, Tropos entered into a trust agreement with certain account holders at the Bank of Taiwan. Under the terms of the trust agreement, Tropos was charged with investing the capital and distributing the yield to humanitarian projects and, of course, to the beneficiaries.  The account holders had been growing their US dollars for over 60 years and it was a vast sum, over $700 Billion USD (or FRNs) and its deployment then would have averted much of the financial disasters in recent years. So what happened?

Simply put, Timothy Geithner stole the money.  Geithner was head of the Federal Reserve Bank of New York, and when the transaction was presented to the FRBNY, he re-directed money.  What was his penalty for being caught?  Promotion to the head of the U.S. Treasury!

The Tropos matter is perhaps the clearest documented example of systemic corruption in the Federal Reserve Banking System.  A little sidebar on the mechanisms used will help underscore the seriousness of the way in which this theft occurred and its far-reaching implications.

Tropos used an ACATS (“Automated Customer Account Transfer System”) to move funds from the Bank of Taiwan to its account at Wachovia Bank (now the Wells Fargo Bank).  ACATS are point-to-point transfers of the holdings of the account “in kind”. They are regularly used, for example, to move all the holdings of a bank or brokerage account from one institution to another without selling the holdings in the account. Say you have an account at Merrill Lynch and you want to move it to Morgan Stanley or E*Trade. The account has securities and cash in it so you complete an ACATS and within a few days your old account’s cash and securities are moved intact to the new institution. ACATS are documents administered by the Depository Trust Clearing Corporation – a wholly owned subsidiary of; you guessed it, the Federal Reserve.

The rules for using ACATS are quite straightforward. To move the account holdings from point A to point B, point A must provide a (notarized) copy of the account statement proving the items to be moved “in kind” are really there. Once the ACATS is signed, the recipient institution/account is now the legal owner, holding the account in trust for the account signatory. It is supposed to be a totally secure transaction.

Because of the size of the movement of USD within the Bank of Taiwan account, Tropos gave a heads up “pre-advise” to the Federal Reserve Bank of New York. Copies of the executed ACATS were provided to FRBNY. And here is where the story slips into the pages of a “who-done-it” financial thriller.

Federal Reserve members went to the Bank of Taiwan and presented the photocopied ACATS themselves and took the $700Billion from the account. They secretly moved the funds through other FRB’s ‘off balance sheet’ but lent it out to banker buddies to use for their platform trading activities, generating enormous yields. Funds were never credited, settled, or paid over to Tropos, nor returned to the Bank of Taiwan account holders.

Tropos has spent much time and money trying to quietly and discreetly recover the funds because, in their opinion, if the story got out in its entirety it could freeze up and destabilize the entire global banking system. It didn’t serve their interest to draw attention to this transfer because; let’s face it, that’s a lot of money. They tried using the political systems in the US, through Senator McCain and Senator Reid and others. Bush Jr. supposedly signed an executive order to pay; Paulson stopped the payment demanding the funds be sent to Goldman Sachs instead of Wachovia, Panetta got involved somehow promising to complete the exec order, while not doing anything. In the soup de jure of dirty tricks politics, Texas funds were deployed to finance a spurious piece of litigation against Tropos’ principals alleging fraud for, get this, Tropos’ law firm taking funds from Tropos’ own trust account and using it on behalf of another client, without the knowledge of the Tropos principals.

The problem for the US banking and political system with the Tropos transaction is, of course, the ACATS paper trail and the notices served upon those whose job and purpose it is to protect the financial systems from the very thing the Fed did.  Hard core proof exists for this theft.  It wasn’t a side deal to do some off balance sheet trading program. Tropos used on balance sheet funds moving through the supposedly trustworthy transfer protocols established by the Fed and the Bank for International Settlements.

Imagine the impact on global commerce and confidence if CFO’s for international companies or finance ministers of sovereign nations grasp that none of their bank holdings and transfers are secure. Suppose GE or any corporation tried to move funds point-to-point, and the Fed stole the money enroute, what would that do to commercial activities? Can’t happen you say, but it’s occurring more and more. The thieving ways are a narcotic to the keepers of the systems. They can’t imagine settling for measly millions in bonuses, they must have more. Besides who cares if they get caught, no one will prosecute; they will pay a small fine and be done with it. Or get promoted to the U.S. Treasury.

Shortly after Obama took the POTUS office, Tropos served a registered notice on him detailing their claim. You can read it here.  Surprise! No response.

 (Tropos Request for Presidential Review - Obama June 2009)

Notices were also served upon the Federal Reserve Banks in San Francisco, Dallas, Atlanta, and Richmond  -- the funds had be traced through their systems with each one using it along the way – and all members of the FOMC (minus Kohn, since he already knew about it). The demand notices and Notices of Default were served upon them. No one contested, denied, or objected to Tropos’ claims except the Richmond Fed responded saying it was a problem for the FRBNY and DC.  You can read a copy of the one sent to Bernanke here

 [Bernanke-Notice of Demand Letter]

 [Bernanke FED/BOG Notice of Default July-2010]

Wait, the plot thickens.

The Office of the Comptroller of the Currency opened a case file on the matter but declined to provide any information on their investigation and shortly after receipt of the Tropos demands, the Comptroller quit.

[Comptroller Currency Letter Nov-6-09]

The Bureau of Public Debt was notified as they had issued public debt instruments on fraudulently obtained funds. Notice was served upon them. No response.

 [Tropos letter to Bureau of Public Debt]

Tropos took the matter to the Bank for International Settlements asking for them to compel the bank to complete the transfer under their constitutional and regulatory requirements for member banks to clear, settle, and pay over funds transferred using their system. Surprise, the Fed owns 37% of the BIS.  There was not much help there, except the BIS did write back and confirm they have no power to compel any banking transaction to complete. No kidding! Read the letters here. Effectively the BIS admitted they have no power so why would any bank care about Basel III compliance, or anything the BIS says?

1.     Tropos to BIS Letter Nov-2-2010

2.     BIS Response to Tropos Letters Dated Nov-2-and-Oct-31 2010

3.     Tropos Response Nov-22 BIS Letter

The Tropos matter gained traction at the G8/G20 summits, when countries and finance ministers realized there were potentially massive amounts of on balance sheet cash that could be released for investment and infrastructure projects. In the Canada G20 meetings, Obama was frequently asked about Tropos and told everyone that Tropos had been paid. He lied.  No surprise there.  In the Seoul G20, the Tropos matter conversations resulted in no concerted agreement by the countries because by now the credibility of the US was beyond severely damaged. Many of those had read the Tropos letters to POTUS, the Fed and BIS with absolute incredulity.

What’s worse is that it became apparent the US Fed had ‘played’ the Chinese against each other, Taiwan against PROC, when the Tropos funds moved, by making it seem that the Taiwanese had cheated the PROC (Bank of Taiwan is a subsidiary of the Central Bank of China). Does anyone know it’s not a good idea to make the Chinese lose face publicly, if ever?  What a way, to make friends with the largest Debt Holder of Treasuries?

Despite their sworn duties to their offices, none of the parties contacted by Tropos have acted publicly. Certainly an Interpol investigation into the wire fraud and financial fraud actions would yield an interesting outcome. Tropos recently wrote to Christine Lagarde, as G20 finance minister asking her to help resolve the issue, and pointed out this pervasive illegal behavior.

[Letter to G20 Finance President, Christine Lagarde, March-09-2011]

Perhaps the US support for her bid to head the IMF had something to do with her lack of response.

The crazy thing about stealing is that it so complicates life. The Tropos yield funds can’t legally appear on balance sheet, unless they are paid to Tropos, if anyone is concerned about legality. But it’s not a far reach for the Administration and the Senate/Congress to settle the matter with Tropos now, or with the other thefts mentioned; put the funds and yield on balance sheet as taxable gains, and get sufficient funds into US coffers by way of tax payments to avoid the default on the debt ceiling. Ergo no tax increases and no spending cuts (not that we think that’s a good idea). They could make a simple admission of ‘administrative error,’ or some other bogus explanation and release the funds.  That way, they could be “transparent” and be “heroes” for negotiating a good deal for the US.

So, why does the Administration pretend to have debt ceiling problems when they can simply pay what has been stolen and collect taxes on the gain? Perhaps it is the insane desire of these thieves to keep what they can never spend freely, so that more crushing debt burdens can be placed on a beleaguered populace, so that they can rob them again, so they can have more screen digits they cannot spend freely. If so, then the strategy is exposed and the people can do something about it. You decide.

Dare we say “Expect much more on this”.

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