The Federal Reserve Is At The Heart Of The Debt Enslavement System That Dominates Our Lives

Courtesy of Michael Snyder @ The Economic Collapse blog:

From the dawn of history, elites have always attempted to enslave humanity. Yes, there have certainly been times when those in power have slaughtered vast numbers of people, but normally those in power find it much more beneficial to profit from the labor of those that they are able to subjugate. If you are forced to build a pyramid, or pay a third of your crops in tribute, or hand over nearly half of your paycheck in taxes, that enriches those in power at your expense. You become a “human resource” that is being exploited to serve the interests of others. Today, some forms of slavery have been outlawed, but one of the most insidious forms is more pervasive than ever. It is called debt, and virtually every major decision of our lives involves more of it. For example, at the very beginning of our adult lives we are pushed to go to college, and Americans have piled up more than 1.2 trillion dollars of student loan debt at this point. When we buy homes, most Americans get mortgages that they can barely afford, and when we buy vehicles most Americans now stretch their loans out over five or six years. When we get married, that often means even more debt. And of course no society on Earth has ever piled up more credit card debt than we have. Almost all of us are in bondage to debt at this point, and as we slowly pay off that debt over the years we will greatly enrich the elitists that tricked us into going into so much debt in the first place. At the apex of this debt enslavement system is the Federal Reserve. As you will see below, it is an institution that is designed to produce as much debt as possible.

There are many people out there that believe that the Federal Reserve is an “agency” of the federal government. But that is not true at all. The Federal Reserve is an unelected, unaccountable central banking cartel, and it has argued in federal court that it is “not an agency” of the federal government and therefore not subject to the Freedom of Information Act. The 12 regional Federal Reserve banks are organized “much like private corporations“, and they actually issue shares of stock to the “member banks” that own them. 100 percent of the shareholders of the Federal Reserve are private banks. The U.S. government owns zero shares.

Many people also assume that the federal government “issues money”, but that is not true at all either. Under our current system, what the federal government actually does is borrow money that the Federal Reserve creates out of thin air. The big banks, the ultra-wealthy and other countries purchase the debt that is created, and we end up as debt servants to them. For a detailed explanation of how this works, please see my previous article entitled “Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand“. When it is all said and done, the elite end up holding the debt instruments and we end up being collectively responsible for the endlessly growing mountain of debt. Our politicians always promise to get the debt under control, but there is never enough money to both fund the government and pay the interest on the constantly expanding debt. So it always becomes necessary to borrow even more money. When it was created back in 1913, the Federal Reserve system was designed to create a perpetual government debt spiral from which it would never be possible to escape, and that is precisely what has happened.

Just look at the chart that I have posted below. Forty years ago, the U.S. national debt was less than half a trillion dollars. Today, it has exploded up to nearly 18 trillion dollars…

image Continue reading


E.U. Officially Adopts the Bank Depositors Bail-In

Almost a year ago to the day I wrote a piece called Derivatives and the Real World Implications, citing that bail-ins would be coming to the UK. This issue has been picked up by Andy Sutton @ Market, well here’s the proof but not all hope is lost. You can still exchange your worthless pieces of paper and digital 1’s and 0’s for gold and silver. People have foolishly put their faith in government and their ability to manage ‘money’, they have failed us but it is all by design and agenda. Fail to prepare, prepare to fail:

It has now been more than a year since that fateful weekend in the Mediterranean when everything changed. However, like most of the big changes we’ve seen lately, there is a subtlety afoot that somehow results in few noticing. This should surprise no one really. How the world can change in such dramatic ways without any type of mass awakening is a topic more for the psychologists who help pull the strings and the evil they represent than for anyone involved in the analysis of economics and events, but I say the above so that you know you’re not kidding anyone.

Even a year later, the subtlety continues and ignorance abounds. Most still don’t know the ramifications of the passage of the Dodd-Frank bill back in 2010. They take it at its word that it is a consumer protection act, but is nothing of the sort. They’ll reap what they sow. The evidence has been plentiful, the analysis outstanding. There have been countless opportunities for people to learn of the truth. Ours is not to concern ourselves with those who refuse to have their eyes opened, but for those who are seeking knowledge. After all, nobody can fault someone who doesn’t know, but wants to. There are plenty who do, especially in light of the EU’s passage of a new set of bail-in ‘rules’ this week. Much of this was already known and previously agreed to, but there are some more interesting spin-offs and it is definitely worth revisiting. The mere fact that they’re spending so much time prepping for another bank blowup essentially guarantees that one is coming at some point. These things tend to become self-fulfilling prophecies in and of themselves, and when there is so much potential looting and pillaging to be done, all the more so!

We want to state up front that this is an extensive subject and that it is impossible to provide a comprehensive look at all the facets of the emerging truth regarding the bail-in mechanism and the entire associated minutia in a single essay. Our commitment is to dedicate our remaining articles to this topic alone in the hopes of providing a singular source of information on the topic. Continue reading

Thank Heaven For Gold Manipulators

Courtesy of Antal E Fekete @ Professor and as ever, he has a point:

This rejoinder was prompted by the Daily Bell interview with Bill Murphy of GATA (March 30, 2014).

I shall accept, for the sake of argument, Murphy’s premise that the dollar price of gold is heavily manipulated by the U.S. government in order to keep it in check. But while Murphy thinks that it is a great curse I shall argue, tongue in cheek, that it is a blessing in disguise. The difference between Murphy’s thinking and mine is the difference in financial survival strategies in the face of the U.S. government’s deliberate policy of destroying the dollar and, along with it, the savings and pension rights of people, to say nothing about destroying the world economy.

Apparently Murphy believes that there is only one reasonable investment strategy in gold, namely, buy and hold in the hope of huge capital gains. However, this strategy turns people into sitting ducks for the manipulators. They engineer violent changes in the dollar price of gold. They squeeze holders. They make them buy high and sell low. In a sense, people fall victim to their own faulty understanding of gold. True understanding makes a distinction between the price and the value of gold. The latter is constant (to the extent there are constants in human affairs); the former is the reciprocal of the wobbly value of the irredeemable dollar. When the dollar is down and falling, the gold price is up and rising, and conversely. The mistake most gold bugs make is that they identify the value of gold with its price. No wonder they fall victim to the manipulators’ tactics and consequently get separated from their gold, sometimes with severe losses. No wonder they consider manipulation a curse, even a criminal activity, and try to use legal means to stop it. That’s what GATA is about. Needless to say, this effort is an exercise in futility. It makes manipulation more pervasive, not less. The manipulators are emboldened by the success of their own tactics. Gold bugs get frustrated. Continue reading

The US is the New Falling Roman Empire (Exclusive Interview with Antal E Fekete)

Courtesy of Guillermo Barba @ Inteligencia Financiera Global:

The Inteligencia Financiera Global blog (Global Financial Intelligence Blog) is pleased to present this exclusive interview with Prof. Antal E. Fekete, founder of the New Austrian School of Economics, monetary scientist, proponent of the gold standard and a critic of the monetary system based on irredeemable currency (fiat money).


Thanks for accepting this interview.

– Prof. Fekete, why did you decide to found the “New” Austrian School of Economics (NASOE)? Did you find something wrong within the “old school”? What about Carl Menger and Mises?

– What I have found was that post-Mises Austrian economists, but already Ludwig von Mises himself, had substantially deviated from Carl Menger’s teachings for the worse. Thus in my view a rather large portion of the post-Mises Austrian economists’ research is in error. I took it upon myself to criticize the deviation from Menger and correct it. The list includes their dismissal of Adam Smith’s Gold Bills Doctrine, the theory of interest as distinct from the theory of discount, to name but a few. The New Austrian School of Economics (NASOE) was launched under the slogan: “Back to Menger!”

– We know you don’t support both the Keynesian and Monetarist theories. What’s wrong with them? What’s their biggest mistake, if any?

– The biggest mistake of Keynesianism and Friedman-style monetarism is that they favor the destabilization of the interest rate structure that was stable before, but had started gyrating and, more recently, plunging into the black hole of zero interest. All this was in consequence of Keynes’ and Friedman’ success in undermining and ultimately overthrowing the gold standard.

– If these two theories are wrong, why do you think they have become the mainstream all around the world? Were they imposed by somebody?

– They became mainstream for reasons of their demagoguery. They are designed to appeal to one’s sense of justice: antidote against misery amongst plenty. They take advantage of the appallingly low level of education based, as it is, on envy. It is characterized by an almost complete neglect of the aprioristic branches of science: logic, mathematics and economics. And I say this as a professional mathematician. Keynes ensnared F.D. Roosevelt; Friedman ensnared Nixon. These two presidents were happy to trample upon the United States Constitution at their bidding. As a consequence the gold standard was destroyed and irredeemable currency was foisted upon American citizens in 1933 and, on every inhabitant of the Earth in 1971. At the same time the gold of the people was looted by the government. Continue reading

Causes And Consequences Of Kondratiev’s Long-Wave Cycle

Courtesy of Prof. Antal E Fekete @

Summary for the busy executive

Here we offer a new theory explaining the causes of Kondratiev’s long-wave economic cycle in terms of gold and the hoarding of commodities. Our description of the cycle itself is also novel and very different from the conventional. We shall be talking about a huge oscillating money-flow to-and-fro between the bond market and the commodity market. When the money-tide begins to flow at the commodity market and ebb at the bond market, we have the inflationary phase of rising prices and interest rates. When the tide is reversed and it begins to flow at the bond and ebb at the commodity market, we have the deflationary phase of falling prices and interest rates. In one word, Kondratiev’s long-wave cycle is the manifestation of the fluctuation in the propensity to hoard. The key question is this: what causes this fluctuation? Is it a natural phenomenon outside of man’s control or, perhaps, it is induced by wrong-headed government policy?

Economic cycles

Economists recognize four major cycles, or regular fluctuations, in the economy as follows:

(1) Kitchin’s short-wave cycle of average duration 3-5 years, discovered in

(2) Juglar’s cycle of average duration 7-11 years, discovered in 1862;

(3) Kuznets’ medium-wave cycle of average duration 15-25 years,
discovered in 1923;

(4) Kondratiev’s long-wave cycle of average duration 45-60 years,
discovered in 1922.

J. Schumpeter, who was born in Austria and came to the United States where he also served as President of the American Economic Society in the 1950’s, was an outstanding student of economic cycles. He believed that the various cycles are inter-dependent, in contrast with the view of others such as Forrester, who believed that the cycles act independently of one another. Schumpeter baptized three of the four cycles by naming them after their discoverers. The exception was Kuznets’ cycle which he did not recognize.

At any rate, Kuznets got a “consolation prize” for being passed over by Schumpeter, namely the Nobel Prize for economics. Moreover, he is the only Nobel-laureate among the four name-giving economists. Kuznets noticed that residential and industrial buildings have an average useful life of 21-23 years. His medium-wave cycle is about fluctuations caused by the amortization-cycle and the problem of replacing ageing buildings. It is interesting to note that all the students of cycles among the four whose name begins with a K were Russian. Continue reading

9 Mind-Blowing Facts About Money

Money and banking are seen as dark arts, extremely difficult to comprehend and understand but I’ll let you into a little secret, its all a charade. Modern money is fiat currency, currency backed by nothing and intrinsically worthless, created by the click of a button and used to subjugate the population.

History, facts and logic stand on my side, money is not a mystery but a fraudulent concept imposed on us, the people. Gold, silver, commodities and land are assets, fiat currency is not money or an asset, its a medium of exchange. When you realise this, that you have been lied to, the world has been lied to, you can protect your friends and family.

Courtesy of the Washingtons Blog:

China Invented Every Form of Money


  • Invented every single major form of currency, including paper money and fiat currency not backed by any tangible commodities
  • Seized gold six centuries before Franklin Roosevelt, in order to prop up its fiat currency and prevent runaway inflation

Debt Forgiveness Is The Basis of Modern Civilization

Religions were founded on the concept of debt forgiveness.

For example, Matthew 6:12 says:

And forgive us our debts, as we forgive our debtors.

Periodic times of debt forgiveness – or debt “jubilees” – were a basic part of the early Jewish and Christian religions, as well as Babylonian culture.

David Graeber, author of “Debt: The First 5,000 Years” told Democracy Now:

If you look at the history of world religions, of social movements what you find is for much of world history what is sacred is not debt, but the ability to make debt disappear to forgive it and that’s where concepts of redemption originally come from. Continue reading

Currency Wars…and the winner is Gold

The Chinese, Indians and Russians have been importing gold on a monumental scale for the past few years as the currency wars intensify. They are betting on that gold will be the new standard when the fiat currency experiment comes to an end. These currency wars have been going on since 2010 and a good read which covers this is ‘Currency Wars’ by Jim Rickards. Currency wars happen when one country devalues their currency to make exports cheaper/imports more expensive and is managed through various means such as money printing and interest rates. It’s essentially a race to the bottom and one of the reasons why we have quantitative easing and nearing 0% interest rates. What does a currency war look like?


It’s all fun and games till someone gets hurt. So China have been importing gold and producing gold internally on an epic scale and this data does not contain all imports.


It is claimed that China’s gold reserves are much closer to 4000 tonnes than what is reported. They haven’t updated the markets since 2009.


So is there a point to any of this? Well I hope so. The point being that the BRICS countries are betting on a collapse in fiat currency, meaning that it will be worth less than the value of the paper it’s printed on. Why? The only thing that gives fiat currency value is confidence in the value of the currency itself, it has no intrinsic value. The BRICS will then back their currencies with gold like its been done for thousands of years.

The US and UK are complicit in this wealth transfer and have been selling their gold like its going out of fashion. Just look at what happened when Germany asked for their gold back from the Fed and the hassle they went through just to see some of their gold. It’s just not there anymore, the US have nowhere near 8000 tonnes, the vaults at Fort Knox are empty and its all been heading East. Gordon Brown got rid of most of the UKs gold holdings at rock bottom prices. I think the pic below sums up what’s going on.