November 10, 2007
“Fed Chief Warns of Worse Times in the Economy” — Get Rid of Federal Reserve — Ron Paul schools Federal Reserve Chairman Ben Bernanke
In an article written November 8th and published November 9th, 2007 by Edmund L. Andrews of the New York Times entitled “Fed Chief Warns of Worse Times in the Economy” it seems as though the purposeful concoction of ARMs or “Adjustable Rate Mortgages” and Sub-prime Loans have served to weaken the economy and cheapen the value of the dollar due to the 50% or so increase in foreclosures and massive housing market meltdown. Sounds a little like the Margin Loan in the 1920s, which caused the Great Depression. Well, apparently we’re on the road to another Great Depression if this keeps up. Who’s fault is it? Allen Greenspan and The Federal Reserve. Sit back for a little bit, and let me learn you some…
First of all, let me include a little excerpt from the above mentioned article:
On a day when stock prices swung wildly, the dollar hit another new low against the euro and further signs emerged from retailers that consumers are growing more cautious about spending, Mr. Bernanke warned that the economy was about to “slow noticeably” as the housing market continues to spiral downward and financial institutions tighten up on lending.
Ladies and gentlemen, although these kinds of things have been happening for years and we’ve always recovered — somehow I think this time is just a little more severe. With the upcoming 2008 elections and with the Corporitacrocy no doubt backing one or more of the seedy candidates along with the Federal Reserve, it seems incredibly possible that a down-turned economy and the threat of a second Great Depression would make for a fantastic platform. Either that, or make someone who is elected illegally seem like a great hero. But, I digress, I don’t know if this information will really come to pass.
What I do know is that the reason the value of the dollar is going under everyday and the reason why the housing market has plummeted with foreclosures is due to none other than the Federal Reserve and Allen Greenspan.
Now, I’m not some shithead trying to push the blame for all of our economic troubles on the very people who aided in causing them. Not at all, I’ll be the shithead who also shifts a lot of the blame towards a big chunk of dumbass Americans who, as always, are looking for a quick fix without thinking of the long-term precautions. Namely, those who signed mortgage contracts under Adjustable Rate Mortgage plans and those who thought it was a great idea to enter into the Sub-Prime Mortgage scam, because that’s what it is — a scam.
In order to learn you some on why our economy is shitty right now, why the foreclosure rates are somewhere around 50% and why the value of the American dollar is plummeting — I’ll have to give you a tad bit of history. I like history, maybe you don’t — either way I’ll break it down real fast for you.
A Tad Bit of History
The Great Depression that you all have no doubt heard about one time or another — most probably in your schools — was brought about, not by some kind of natural economical pimple of chance, but purposefully by the then fairly newly created Federal Reserve working with a whole lot of banker and broker scum. Eh? Am I a conspiracy nut? No, I’m not. I’m a history nut.
In 1921-1929 the Federal Reserve exponentially increased America’s money supply, resulting in extensive loans (much like J.P Morgan did in 1907, but I’ll let you look that up on your own).
It was during this time that a new type of loan called a “Margin Loan” surfaced. A Margin Loan was a stock market related loan that allowed an investor to put down only 10% of any stock’s worth with the other 90% of the stock’s cost being loaned through the broker. For those of you that don’t know what I’m talking about, this basically meant that someone could buy 1,000 bucks worth of stock and pay only 100 dollars down.
The Margin Loan sounded like a really good idea to the folks investing in the 1920s, so all the idiots signed up to be rich savvy investors, which ultimately caused the “Roaring 1920s” in which everyone seemed to be making loads of money in the stock market. Unfortunately — never thinking ahead and never reading the fine print — a Margin Loan had a big giant catch. It could be called in at any time and when it was called in, it had to be paid within 24 hours, which required the person to sell the stock purchased WITH the loan. That’s a pretty big catch, eh?
Guess what happened! A few months before October in 1929, J.D Rockefeller, Bernard Barack, and other marketplace insiders quietly exited the market. Then, on October 24th 1929, New York financiers that financed the Margin Loan decided to just RANDOMLY call them in en-mass.
What resulted was an insane sell-off in the market and mass bankruptcies and mass withdrawals that caused 16,000 banks to close. What does the Federal Reserve do during this time? They buy up all the banks and other corporations. And, you would think that since the Federal Reserve controls the inflation rate, supply of money and interest rate that they would help the American people by expanding the money supply — nope. The Federal Reserve decided to contract the money supply fueling the Great Depression.
What followed after all of this jargon was the abolishment of the gold standard under the pretext “helping to end the Great Depression”, which required all citizens to turn in their gold to the National Treasury under penalty of 10 years imprisonment. Basically, we were made poor on purpose, we were robbed of our wealth on purpose effectively making all the people that caused the Great Depression rich and even more powerful, then our dollars — which were receipts “redeemable in gold” — became nothing more than “legal tender”. That means that we might as well be paying for our shit with Monopoly money.
There are two quotes that have been commonly associated with the Federal Reserve and this time in American history, and I love them.
In 1921 Congressman Charles Linbergh said:
Under the Federal Reserve Act, panics are scientifically created. The present panic (Panic of 1920) is the first scientifically created one, worked out as we figure a mathematical equation.
Congressman Louis McFadden, who was a long-time opponent of the Federal Reserve Act and centralized banking, brought up impeachment proceedings against the Federal Reserve Board saying of the stock market crash and Great Depression:
It was a carefully contrived occurrence. International Bankers sought to bring about a condition of despair, so that they might emerge the rulers of us all
McFadden was later poisoned at a banquet before he could push for the impeachment. Huh, wonder why? I’m not asking, by the way. I know why, so should you, so I won’t mention it.
Before I continue on, let me inform you additionally that the Federal Reserve is not Federal, it is private. It is not a part of the United States government. It is a private corporation that makes its own policies and is under no regulation by the U.S. Government. This private corporation loans money at interest to the U.S. government and is the exact kind of centralized power that our Founding Fathers sought to escape from, and according to Benjamin Franklin was the ENTIRE reason the Revolutionary War was fought.
Today, thanks to the Federal Reserve and affiliate financiers, brokers and corporations — the only thing that gives the dollar value is how much of it is in circulation. The Federal Reserve can regulate the money supply. Therefore, The Federal Reserve literally has the power to bring entire economies and societies to its knees.
The Here And Now
To tie it all together, I want you to think about the Margin Loans I just mentioned and remember the despotic power of the Federal Reserve. Enter the “Sub-Prime Loan Market” and “Adjustable Rate Mortgages”.
An excerpt from an article found on the website Marcetorial published February 23, 2007 by Mike Whitney entitled “US Housing Market Crash to result in the Second Great Depression” which I will be referring to quite a bit (it’s a fantastic article) states the following:
Congress is now looking into the shabby lending practices that shoehorned millions of people into homes that they clearly cannot afford. But their efforts will have no affect on the loans that are already in place. $1 trillion in ARMs (Adjustable Rate Mortgages) are due to reset in 2007 which guarantees that millions of over-leveraged homeowners will default on their mortgages putting pressure on the banks and sending the economy into a tailspin. We are at the beginning of a major shake-up and there’s going to be a lot more blood on the tracks before things settle down.
What has happened is that these ARMs in the Sub-Prime Mortgage Lending Market coaxed tons of young Americans and those who didn’t have much money to sign mortgage contracts for houses with no money down, no matter the credit — glitz and glamour. The problem is that these Adjustable Rate Mortgages, although they may start low, will increase over the years however much the mortgage companies want, whenever they want — it states this in the contract.
See the similarity between this and the Margin Loan back in the 1920s? You can’t get something for nothing folks (usually) remember that. You can actually help cripple the Federal Reserve and its corrupt private banking corporations (Fannie Mae was begun by J.P Morgan directly after the Great Depression to “help people get homes” for example — in fact almost all Mortgage Lending companies are Federal, and to most degrees they are required to be) if you don’t play into these goddamned schemes. I won’t even go into how mortgages are basically schemes themselves.
So who is to blame for this really stupid idea of massive low-interest rate mortgage that are extremely adjustable, thus causing an even more stupid sub-prime market? Allen Greenspan. Another excerpt from the Marketoracle article I mentioned above states the following:
There’s no doubt now, that Fed chairman Alan Greenspan’s plan to pump zillions of dollars into the system via “low interest rates” has created the biggest monster-bubble of all time and set the stage for a deep economic retrenchment. Greenspan’s inflationary policies were designed to expand the “wealth gap” and create greater economic polarization between the classes. By the time the housing bubble deflates, millions of working class Americans will be left to pay off loans that are considerably higher than the current value of their home. This will inevitably create deeper societal divisions and, very likely, a permanent underclass of mortgage-slaves.
Does it seem like a reoccurring theme that the Federal Reserve seems to love lying to us in a way that the end result cannot be defined in any other way than the word “slavery”? It shouldn’t.
Ladies and Gentlemen, the primary reason I type this stuff, do these videos and run this website is not because I get money for it. It is because you need to know that tyranny is a threat and always has been a threat all throughout history. It is not far-fetched to believe that our own government-related entities and corporations are seeking to control us. In this aspect, we are being controlled by a self-perpetuating system of debt in which we will never be able to get out of.
You can think about morals. You can think about religion. You can think about political ideology. You can think about all of these things and concentrate on them as possible reasons for either good things or bad things going on in our government and abroad. You can consider these things to be reasons for war or any other kind of local or global action. However, you will be wrong.
History shows and human character demonstrates that money is the primary reason we kill, destroy, wage wars, become dishonest. Money is the path to power, whoever controls has the power. In this case, the Federal Reserve controls all of our money — they control the entire U.S. Economy, therefore they have the power and we, everyday as long as we fall for these stupid financial plans such as the 1920s Margin Loan and today’s Adjustable Rate Mortgages and our fluctuating love for living on credit alone, then we will become ultimate slaves. We will have no power. We will have no say. We will have no government. In fact, as already stated, the U.S. Government ITSELF is a entirely a slave to the Federal Reserve, which isn’t even supposed to exist and is the whole reason America was started, to get out of centralized government and centralized banks.
Mike Whitney was staggeringly accurate in his February article for Marketoracle when he wrote the following:
A shrewd economist and student of history like Greenspan knew exactly what the consequences of his low interest rates would be. The trap was set to lure in unsuspecting borrowers who felt they could augment their stagnant wages by joining the housing gold rush. It was a great way to mask a deteriorating economy by expanding personal debt.
The meltdown in housing will soon be felt in the stock market which appears to be lagging the real estate market by about 6 months. Soon, reality will set in on Wall Street just as it has in the housing sector and the “loose money” that Greenspan generated with his mighty printing press will flee to foreign shores.
We are experiencing these words RIGHT NOW. That is what the New York Times article I first referenced at the beginning of this blog is about. As far as the reality fleeing to foreign shores? That is going on as well.
In an article written by Paul Joseph Watson on Friday, November 9th, 2007 for Prison Planet entitled ” Ex-Wall Street Journal Editor: Dollar Collapse Will Cripple European Economy”
The father of Reagonomics and former Wall Street Journal editor Paul Craig Roberts says the following on the Alex Jones radio show:
The loss in value of the dollar is becoming so rapid it’s alarming….we’ve got unmanageable trade deficits, budget deficits, the economy is set for recession, the wars show no end…
At some point the foreigners will stop financing our budget and trade deficits – then we’re going to have a massive crisis the likes of which we’ve not experienced….if you’re totally dependent on imports of manufactured goods and you can’t pay for them, what do you do?…
There’s simply so many dollars, there’s not enough room in other currencies to absorb them – at some point the flight of investors from the dollar to the Euro will cause amazing troubles in Europe – they won’t be able to export anything because the prices are driven up so high…
investors will eventually desert the Euro as a safe haven from the dollar and the same process will cause a crisis in Britain as the pound is devalued due to exports being hit…
the potential destruction of the dollar as the world’s reserve currency could eventually return us to a system of barter, completely altering the landscape of the economic structure as we know it.
That is today’s look at the news — I hope you have come out of this with some insight. You may be wondering how we can solve problems like this. Normally I wouldn’t be able to provide any immediate answer, but I can’t help but further push my opinion that supporting Ron Paul for president in 2008 it help get rid of this problem by getting rid of the Federal Reserve and reinstate small government, which is what the Founding Fathers originally intended. Ron Paul is the only candidate that wants small government, that keeps in line with the Constitution and who wants the Federal Reserve abolished. After all, Congress has the right to abolish the Federal Reserve, but they haven’t. Please read “Who is Ron Paul?“, which I wrote to help people make up their minds about Ron Paul — you will be able to find everything that you need to know about him there and by going to www.RonPaulforPresident2008.com.
Below is a video of Ron Paul combating the Federal Reserve head on this same issue –
Ron Paul V. Fed Chair Bernanke: Free Market Smackdown! (video)
Keep on keepin’ on folks. Make sure you care. Comment, rate our videos, bookmark us, digg us, and keep coming back and we’ll keep on learnin’ you some.