Bailouts: the wound that will
keep on hemorrhaging
Part 1 of 2

Thursday, September 25, 2008

By Devvy Kidd

"No one knows what to do. We are in new territory here. This is a different game. We're not here playing soccer, basketball or football, this is a new game and we're going to have to figure out how to do it." Sen. Harry Reid [D-NV], September 17, 2008

It is exactly that level of ignorance in the U.S. Congress for decades that has brought America to the brink of financial ruin. William Greider, author of Secrets of the Temple, said the same thing during his testimony, House Banking Committee, October 7, 1993:

"Otherwise confident and intelligent people including members of Congress - defer to the Fed's wisdom mainly because they do not understand it....The only players who are left out of this conversation are the American people and, to a large extent their elected representatives. Instead, they are provided a frustrating stream of evasive euphemisms and opaque jargon and platitudinous generalities and, sometimes, even downright deception. As more than one Federal Reserve governor confided to me, it would be very difficult - perhaps impossible - for the Fed to have an honest discussion of monetary policy with Congress or the public because the level of ignorance is so profound."

Clearly, we have made huge strides in educating our fellow Americans about fiat currency and sound monetary policy, but without real newspapers in this country, most Americans don't know the truth. It's also crystal clear that members of Congress, with few exceptions, are clue less. I think it's safe to say that many of those who do know, don't have the courage to go up against the most powerful money cartels in the world; the rest are simply crooks who profit from a corrupted monetary system. Over the decades, Congress has been perfectly willing to forfeit their authority, violate their oath of office and the supreme law of the land as Robert Reich, former Secretary of Labor under Bill Clinton, pointed out in USA TODAY, January 7, 1999:

"The dirty little secret is that both houses of Congress have become irrevelant...In case you hadn't noticed, America's domestic policy is being run by Alan Greenspan and the Federal Reserve Board...Congress is out of the loop. Every so often, some senators or House members politely ask Greenspan to visit and talk about the economy. He obliges by riding up to the Hill and muttering convoluted sentences that no two people interpret in quite the same way. Then he goes back down to the Fed and runs the country."

Not long after the unconstitutional Federal Reserve Act was passed and our country was turned over to a cabal of the rich and privileged, there were congressmen who railed against this massive fraud and swindle. Louis McFadden was one of the champions of exposing what happened by the passage of that act. On May 23, 1933, McFadden launched an indictment against the robbers called banker barons:

"Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.

"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it....

"The Federal Reserve Bank destroyed our old and characteristic way of doing business. It discriminated against our 1-name commercial paper, the finest in the world, and it set up the antiquated 2-name paper, which is the present curse of this Country and which wrecked every country which has ever given it scope; it fastened down upon the Country the very tyranny from which the framers of the Constitution sough to save us....

"As Agents of the foreign central banks the Fed try by every means in their power to reduce our favorable balance of trade. They act for their foreign principal and they accept fees from foreigners for acting against the best interests of these United States."

In my last column, I warned we the people would be forced to sacrifice the fruits of our labors to foreign banks -- just as Congressman McFadden said in his indictment. I told you so:

September 24, 2008: Fed plows $30 BILLION into money markets overseas. "WASHINGTON — The Federal Reserve, in coordinated action with foreign central banks, plowed $30 billion into money markets overseas Wednesday, part of an ongoing effort to fight a global credit crisis...The Group of Seven countries said they welcomed the extraordinary steps by the United States to stem the crisis, including a plan for the Treasury Department to buy $700 billion in bad mortgages and other toxic assets held by banks and other financial institutions. Those dodgy debts are at the heart of the crisis. Besides the United States, the Group of Seven is made up of Japan, Germany, France, Britain, Italy and Canada."

Of course, this "news" item never mentions the core issue of the problem, only more Band Aids and rape of the people's pocket books. As masters of word smith and propaganda, the privately owned FED cartel of bankers publishes numerous booklets to legitimize their existence.

This nifty, full color publication was put out by the Federal Reserve of Boston in August, 1990. This marvelous example of clever wording actually gives the reader some glimpse into the plan which turned into the greatest swindle in the history of the world, pg 30: " They made it clear they wanted the Aldrich plan, with one central bank generally controlled by bankers and generally independent of government regulation." However, unless someone has read one of the most authoritative and fully documented works, Creature from Jekyll Island , and The Coming Battle, they won't understand the dry words on these pages and how they conceal a monstrous plan to loot and plunder the people's treasury.

This is one of my favorites from the Graduate School of Business, Indiana University for the St. Louis Fed. What this sterling little work doesn't tell the reader is the real truth behind the Aldrich Plan "covered" on pages 4-6. While many believe Wilson later regretted his signature on the bottom line of the legislation creating this monster, according to John Milton Cooper, professor of history at the University of Wisconsin, author of several books on Woodrow Wilson, in an email to columnist, Andrew Leonard, "I can tell you categorically that this is not a statement of regret for having created the Federal Reserve. Wilson never had any regrets for having done that. It was an accomplishment in which he took great pride."

Why would Wilson regret it? He wasn't stupid. Wilson knew what he was doing. He was a player. In an effort to inculcate the propaganda of the Fed and the wonder of fiat currency into the minds of all Americans, the Federal Reserve also distributes comic books for kids; see selection here.

Of course, like today, the passage of the Federal Reserve Act was one of greed. Some things never change:

"Mr. President, I deeply feel my recent affiliation with the big business interests of the country, and I appreciate the complete reform of the Republican Senators, who have had for years the opportunity of giving this country relief against big business and have never done it, and who have not only been affiliated with big business, but have been receiving campaign funds ad libitum from those very interests." Sen. Robert L. Owen, Congressional Record - Senate, December 23, 1913, page 1472

Owen's mea culpa was short lived as we see on page 1473: "Senator Robert L. Owen, chairman of the Senate Committee on Banking and Currency, last night confirmed a report that he is to be a large stockholder in a national bank now being organized in St. Louis." The senator from Mississippi, Bristow continues, "In closing I desire to say that this bill contains a concentration of power that has never been lodged in any Federal officer since the Government was established. It puts in the hands of the Secretary of Treasury and his subordinate officer, the Comptroller of the Currency, a power over the banking and currency affairs of this Nation greater than has ever been held by any man in the history of any civilized nation over the banking and currency of that nation."

This latest bail out will take the treachery to the final end with 32 words:

"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

"In short, the so-called "mother of all bailouts," which will transfer $700 billion taxpayer dollars to purchase the distressed assets of several failed financial institutions, will be conducted in a manner unchallengeable by courts and ungovernable by the People's duly sworn representatives. All decision-making power will be consolidated into the Executive Branch - who, we remind you, will have the incentive to act upon this privilege as quickly as possible, before they leave office. The measure will run up the budget deficit by a significant amount, with no guarantee of recouping the outlay, and no fundamental means of holding those who fail to do so accountable."^[1]

Many years ago, another brave member of Congress had this to say:

"Now, take the Panama Canal bonds. They amounted to a little less than $50,000,000 - $49,500,000. By the time they are paid the government will have paid $75,000,000 in interest in bonds of less than $50,000,000. So the government is paying out $125,000,000 to obtain the use of $49,500,000. That is the way it has worked all along...

"Now, I believe the system should be changed. The Constitution of the United States does not give the banks the power to create money. The Constitution says that Congress shall have the power to create money, but now under our system we will sell bonds to commercial banks and obtain credit from those banks. We do not receive money for the bonds...

"I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress to sit idly by and permit such an idiotic system to continue. I have talked to the Secretary of the Treasury and members of the Federal Reserve Board and other people who are supposed to know about the money system of our country. They know this can be done easily and conveniently, and it will save money; but their one reply is, "It will have a bad psychological effect." Well, I do not think it would have a bad psychological effect to save the people 50 per cent of their national debt. I do not think it would have a bad psychological effect to save the people over a billion dollars a year in interest. I do not think it would. It certainly would have a bad effect on the people who are collecting interest on the Government's money." Congressman Wright Patman, Congressional Record, September 29, 1941, pgs 7582, 7583

The fools in Congress handed over the Panama Canal to a banana republic with the communist Chinese running the show. While the labor and sweat of the American people was simply thrown aside, we the people were left with more debt.^[2]

1 - Dirty Little Secret of the Bail Out
2 - Transfer of Power

Click here for part -----> 1, 2

Devvy left the Republican Party in 1996 and has been an independent voter ever since. She isn't left, right or in the middle; she is a constitutionalist who believes in the supreme law of the land, not some political party. Her web site (www.devvy.com) contains a tremendous amount of information, solutions and a vast Reading Room.

Devvy's website: www.devvy.com

E-mail is: devvyk@earthlink.net

NOTE: In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributed without profit or payment to those who have expressed prior interest in receiving this information for non-profit research and educational purposes only. For further information please refer to: http://www.law.cornell.edu/uscode/17/107.shtml

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