The FED's Caldron of Chaos (Republicae)

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The FED's Caldron of Chaos (Republicae)

Post by hawkiye on Sun 14 Dec 2008, 2:55 am

Long but well worth the read!

The FED's Caldron of Chaos (Republicae)

Posted December 14th, 2008 by Republicae

government is increasingly placing itself in a position where it will
not be able to honor any of its promises it has or is currently making;
even if the will was there it would be impossible for our government to
honor the vast multitude of commitments and obligations it has
promised. Along with our government, the Treasury and the Federal
Reserve cannot possibly honor the promises they now make.

We live in a world of irredeemablities, from our currency to
government bonds; the entire system is based upon a false presumption
of value. After decades of economic indoctrination, those within our
government, within banking and within most corporations have come to
believe that the negative value of debt is actual positive asset value.

Of course, a major part of the indoctrination that has taken place
over the decades is that the gold monetary system was the primary cause
of the Great Depression. That it was the deflationary propensity of a
gold standard caused the contraction and therefore the Great
Depression. The blame on gold money was intentional because it allowed
the Federal Reserve and its supporters in our government to complete a
transformation of the monetary system in this country.

Now, remember there is currently a great rush into Treasuries but
when gold money was around such Treasuries had to compete with a very
strong force, the asset value of gold. In fact, gold was the primary
competition that stood in the way of the ability of the government to
raise unlimited funds through the issuance of bonds. Gold therefore
also stood in the way of government power and the political ambition of
various groups in this country. Thus, as long as gold stood in the way,
there was absolutely no way for the political agenda of certain forces
to be implemented. It is gold that allowed the People to retain their
power over government because, unlike fiat money, gold is monetary
property, which is just as real as an acre of land, or a home.

When gold is available, the People will always gravitate toward it
and that is the one thing that the government and the bankers cannot
bear. If there is a choice between investing in gold or government
bonds, the People, back in the day, tended to choose gold. This, of
course, meant that when the government wished to borrow the cost
associated with that debt was costly and therefore restraining.

FDR essentially created the only market in town when he inflated the
price of gold, which in turn depreciated the value of the Dollar and
then confiscated the gold. From that point government bonds had no real
competition and the goal of monetary monopoly was begun in this

Since the government was no longer restrained by gold it was no
longer necessary to seek and obey the consent of the People because the
power of the principle of monetary property was completely voided by
government actions. With complete control over the source of money,
along with the economic power it provides, it was just a matter of time
before the corruption of the entire governmental system of the Republic
was complete. The government was now in control of the money, the
source of the money and the force associated with interest rate

In such a contrived system, the government will always seek to
maintain lower interest rates than the market demands and while under a
sound monetary system lower rates tend to be a positive force for
economic growth, in a fiat system there is as much danger from
extremely low rates as from extremely high rates because the normal
market forces are interrupted by manipulation. In a fiat monetary
system if the rates are manipulated to the point that they are
continually lowered eventually there will be a consumption of capital,
siphoning it off until the economy begins to hobble toward destruction.

Today we live in a world of bonded debt, debt against debt,
exchanging debt for debt to the point that its actual value is based
solely upon its liquidation, but even that is now becoming
questionable. The question is the value, always the value. When the
value is uncertain then the entire system becomes fragile and unstable.

The game has always been to replace asset value with debt value that
is the heart of the fiat system. Our government is now solely based on
the debt system; it relies upon it for its power and its functionality.
Interest rate manipulation is the key to the debt system upon which
this government relies and upon which it operates, thus extending its
scope of power over this country.

During the 1920’s, the Federal Reserve Bank began its criminal
activity by secretly injecting new money into the economy through the
direct purchase of government bonds through what we now know as Open
Market. It was a practice that was expressly prohibited in the original
Federal Reserve Act of 1913. So, the Federal Reserve bought these
government bonds with newly printed Dollars even though the Act clearly
stated that government bonds were never to be used to collateralize
either Federal Reserve notes or deposits. The shift from gold and real
collateral was effected by these actions and later, after Congress saw
the advantage of the Open Market, it relented and revised the Federal
Reserve Act, after the fact, to allow the purchase of government bonds,
thus collateralizing debt.

Bond speculators found their heavenly bounty in this bond market at
the expense of the public and eventually the long-term health of the
country’s economy. The entire system has an inherent flaw because it
is, particularly in the long run, highly unstable and produces extreme
deficit spending and debt creation. It was the promise of stability
that helped implement this vile system, but stability is the last thing
it produces; therefore it must be constantly manipulated to remain
viable, but that can only last just so long.

This People have been subjected to numerous political and economic
crimes, most of which have come by way of political promises; it is
strange that Americans still listen to such promises spewing from the
mouths of their elected officials, perhaps more astounding is the fact
that we still elect such politicians. I dare say that few remember a
promise made to the American People, but Franklin Roosevelt promised
the People that as soon as the banking crisis was over that all the
gold that was confiscated would be returned to the People. What
happened, instead he debased the currency by 56%; of course all of this
was done in the best interest the People.

Roosevelt was the hero of the Fabian Socialist, the Marxist, and the
Fascist and of course the Keynesians; all branches of the same root
stock. Of course, the accepted history, the history that is projected,
taught and indoctrinated into every area of education and in the
political arena promotes FDR as the savior of the country, very much in
a similar way that the apotheosis of Lincoln has been carefully
crafted. It is interesting that Obama has now taken on the mantel of
both FDR and Lincoln, have you noticed?

The problem for Mr. Obama is that time has run out, there are few
workable solutions left within the system to save it from inherent
destruction. At least for the last 30 years this country has fallen
victim to the very system it has depended upon for its economic
viability. Our industry and manufacturing has basically closed up shop,
shipping jobs overseas for more favorable tax and wage structures. The
manipulation of interest rates has thwarted market forces, it has
siphoned off capital from our economy. Finally fear has taken hold
within the system, even banks are not sure who they can trust, even
among their own the have little confidence. The Federal Reserve System
and the Treasury must support the entire system, without them the banks
would crumble under the weight of the very system they employ.
The problem that is faced today is far more difficult than what FDR
faced in the 1930’s. The system itself is different that it was in the
1930’s, the money is different, the bond system is different and in
many ways the political system is different.

Have you noticed all the “new tricks” being pulled from the great
big hat of the Federal Reserve, the Treasury and indeed the government?
Have you noticed the panic in the houses of power, its there and it
will begin to show even more as time goes on? In many ways, our
government, in partnership with the FED, is drastically departing from
even the principles considered sound in the central banking system they
manage. The FED is now side-stepping the Open Market with Quantitative
Easing, directly infusing money into the economic machine and the
consequences of these actions will utterly destroy the very system they
are trying to save and in the process the economic stability of this
country. The promises are flowing, all of which are completely

They are avoiding, at all costs, the only thing that can actually
redeem the system: Gold. It is the only money that can save our
economy; the only problem is that in the process of saving the economy
it will utterly destroy the system they depend upon for their power and
wealth. Remember, during the 1930’s the United States enjoyed what is
perhaps one of the most valuable commodities a country can have: faith
in its credit as a country; today there is no faith in either its
credit rating or in its ability to pull itself out of the massive hole
it has created. From the world’s creditor to the world’s debtor, the
transformation has been dramatic and devastating.

Like the classic “sucker syndrome” many are now rushing into U.S.
Treasuries and this so-called “flight-to-safety” is providing a
temporary and superficial appearance of strength to the U.S. Dollar.
That will soon end and during it all we will lack any real leadership
on either the economic or political fronts. The few that do understand
and are voicing their concerns about what is happening are being
drowned out by the din of Keynesians with their worn-out 1930’s
solutions. They only know how to do one thing: print money and lower
interest rates; the problem is that the system has reached the point
where such monetary slight-of-hand no longer works with a system
reaching its inherent terminal point. They have no solutions, they
never did.

Mr. Obama hasn’t a clue and he can only listen to the only ones he
thinks can listen to because he thinks they still have the answers.
They don’t and soon enough he will realize that fact, everyone will but
far too late to accomplish a real solution or prevent the complete
deterioration of this socio-politico-economic system.

This time around the Keynesians will not have gold to kick around;
they can place no blame on that “barbaric metal” or the monetary system
it once supported. The utter failure of the entire system will awaken
multitudes of people around the world to the bankrupt ideologies of
central planning, Socialist economics and the politics that support

People and politicians alike have placed a great deal of faith in
the Federal Reserve and indeed the government; the indoctrination was
almost complete, but trouble is brewing in the faith and confidence
department these days. The miracle of creating money out of thin air is
wearing thin; the truth is being revealed each and everyday as this
decaying system gasps for breath. Even the FED cannot avoid operating
within the confines and the principles that restrain even the fiat
monetary system, but they are trying very hard to worm around the
limitations of the system they support and try to maintain. The Federal
Reserve Governors are not aware that they are sealing their own fate,
nailing the top to their own coffin and few will sing dirges at their

They will continue to stir the Caldron of Chaos until all the
vileness rises to the top, exposing vast economic and political
corruption that they have been party to throughout the last 100 years.

God Rot Them!


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