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Our FED ignores the ‘purpose’ for money/currency! Why?

December 16, 2013

Our Federal Reserve Banks and our Fed System has NO money of their own. Think about this reality! The Fed’s commercial banking institutions (some 2,900 member banks) have NO currency of their own (which they legally own or control). American MONEY, historically, has been silver/gold (1792 – 1973) and our Fed System has neither money nor currency within any of their huge concrete and brick buildings. Our CURRENCY is called the ‘dollar’ and our Fed has NO physical ‘dollars’ within the walls of their buildings (which the System owns). So what gives? Why is our Fed allowed to exist with NO money and No currency of their own? Our Fed started in 1913 – 14 as a huge private Ponzi Scheme. Banksters promoted the idea that a checkbook (with zero balance) could be used to create a currency out of nothing (in exchange for our government bonds). The scheme creates a currency from DEBT and then collects INTEREST on the debt purchased. What a fraud (on the American people) and a total misrepresentation of reality!  Let’s give these issues some thought for this missive.

The first issue that we need to resolve is the issue of what is ‘money’. Money, in reality, emerges from a barter environment (the people’s marketplace) and then it serves as a tool for the valuation of goods and products (produced and exchanged). Our first ‘money’ was chosen by our Congress back in the 1785 – 1792 era. Thomas Jefferson was the most instrumental founding Father in the selection of our money item and then he and Alexander Hamilton presented a philosophy which our Congress adopted in 1792 via the Coinage Act of 1792. Silver and gold became our money. The American people also agreed with this selection as our money. Keep in mind that ‘money’ is always some item from nature which exists as a physical item. This has been reality for some 5000 years.

The second issue that we need to resolve is the issue of what should be our ‘currency’? Our money became silver and gold as described above. Our ‘currency’, however, was another choice which our politicians decided upon in the 1785-1792 era. What our Congress chose for our ‘currency’ was the mental unit (or word) that we call ‘dollar’. This ‘name’ (derived from one’s consciousness) was then ‘defined’ in terms of the MONEY item chosen above (Jefferson and our Congress chose silver). The definition chosen was 371.25 grains of silver. Our ‘dollar’ (1792 – 1973) had a definition (in terms of silver or gold) and it also had meaning for the American people. We all could ‘value’ items created, produced, and exchanged with a currency unit that had meaning and substance. The word physical means an item from NATURE! What else is important?

The third issue to understand, now that we have both ‘money’ and a ‘currency’, is the issue of what is the purpose of money and currency? What role does it play? To understand the purpose we need to understand the concept of ‘value’ and also ‘wealth’. The purpose of money/currency is to serve as a tool which promotes the creation of new wealth for the marketplace (and acts as a proxy for the concept we call ‘value’). An example of ‘wealth’ is an automobile. If I create a new auto for the marketplace and the people decide that this new auto has ‘value’, then money/currency can be exchanged for this good/product. The ‘value’ of this new auto gets denominated in units of money/currency (for Americans this is our ‘dollar’). As new wealth comes to the marketplace new money/currency can be created to maintain stable prices. Note that money/currency represents the value of the new wealth being created!

The real purpose of money/currency (say silver/dollar) is to ‘value’ new production that is offered to the marketplace (today we call this price discovery). This new production (say an auto) is ‘valued’ by the people as they bid and negotiate for this new auto. What happens is that new ‘wealth’ has been created and money/currency becomes the tool for promoting additional ‘wealth’ creation (and new price discovery). Wealth consists of all the physical items that derive from our natural resources (food, clothing, shelter, transportation, etc.). As wealth is created for the marketplace, we need additional money/currency to facilitate transactions within our growing marketplace. The purpose of ‘money/currency’ then is to serve as a tool for ‘valuation’ and also the additional functions of: unit of account, medium of exchange, and store of value. Money does have a PURPOSE to fulfill within a Capitalistic marketplace.

Today, our Fed and their banking operations, are supposed to honor the roles for money/currency so that our economy can grow in the production of wealth and so prosperity can emerge for all the people. Is our Fed fulfilling any of these important roles? I don’t think so! Let’s just look at the QE (counterfeiting) operations of our Fed as an example. What economic principle does all this QE fulfill? Today, our Fed and all their banking affiliates have NO money or currency that is real or meaningful. Our Fed has zero units of silver or gold within their hallowed walls and also minimal units of paper currency (less than 4%). Their QE operations create bogus/virtual/imaginary digits for their vast network of computers (primary dealers and such) BUT no real physical WEALTH emerges to represent these $$$trillions of new virtual digits being ‘typed’ into the computer. This is a total ‘fraud’ on the American people and their government! Let’s explain further!

Where did Ben Bernanke and his Fed (a private institution, legally) obtain all their QE units (called ‘dollar’s)? How did these virtual units (dollars) get into the computer screen for distribution and circulation within their network of computer screens (called primary dealers)? Keep in mind that there is NO real money (silver/gold) within the hallowed walls of the Fed buildings. There is also NO real currency (legally owned by the Fed) which these policymakers use for their operations. Paper dollars are no longer needed (within the Fed’s Computer System) to increase digital dollars for the System. So what happens (within this computer network) which leads to the $$$trillions of new currency units (called QE dollars) which get distributed and circulated within our economy? Where do these virtual/computer units derive from? The answer to this question is real ‘magic’ for the many who lack an understanding of our unconstitutional Fed.

What happens is that Ben (his FOMC committee) and his staff (now some 60 plus traders at the New York Federal Reserve Bank), have the authority to ‘type’ into the computer (at the N.Y. Fed) numerical digits which then increase the revenue of the Fed’s checking account. This authority derives from Ben and his FOMC committee (via the Federal Reserve Act of 1913 which should be viewed as UNCONSTITUTIONAL). Isn’t this magical and illusionary? Ben and his staff can now create computer digits (call them dollars as they emerge within their computer screen) and then use these virtual/computer/imaginary digits to PURCHASE new virtual and/or real assets from their primary dealers (and/or other entities). The N.Y. Fed can purchase new government securities or mortgage securities from their network of primary dealers and do this without having ANY money/currency of their own. Our Congress is complicit in all these shenanigans!

They can purchase virtual mortgage securities from such GSE’s as Fannie and Freddie. They can swap virtual dollars for foreign virtual currencies with other Central Banks. They can influence the stock and bond markets with their trading activities (the N.Y. Fed now has a trading room on its 9th floor with some 60 or so real-time traders). All these actions by our Fed are initiated by mostly a few elite policymakers (unelected by the American people). The New York Fed becomes the agent for implementing all the directives emerging from Ben and his FOMC committee. The Fed’s checking account is called the System Open Market Account (SOMA). This account is increased merely by ‘typing’ new virtual numbers (called dollars) into the computer. What is all this about and does any of this fulfill the real purpose/role for money/currency? Does anyone perceive a FRAUD and PONZI SCHEME in all this?

What we have today is a CASINO financial operation at the Fed and within their hallow walls on Wall Street and throughout our Nation. Virtual/digital/imaginary units (called ‘dollars’) are ‘typed’ into the computer screen and these units are then funneled to select elite financial entities for further manipulation of our computer driven markets. The entire financial system is now mostly a virtual/digital operation controlled and manipulated by a select group of elite and unelected banksters. What a far cry from anything which resembles sound money and sound principles of wealth creation. What we have today are banksters operating within a casino financial system driven by speed of light computers, algorithms, and dark pool manipulators. There are NO logical or principled economic outcomes which these operations fulfill. The entire operation is mostly an illusion, delusion, and a fraud upon the American people. Few, however, understand what is happening!

Where is all this leading going into 2014? Are these phony computer operations creating any real confidence or growth for our economy? Can they create any confidence or growth for our economy? Can virtual currency units (created from the MIND”S of banksters…from their inner consciousness…and out of nothing) bring us real wealth, growth, confidence, and prosperity going forward? Can any of the mountains of public DEBT be repaid? Can our accounting books (now all virtual computer entries) be balanced in 2014 or after? What do our Global trading partners think about all these shenanigans within the most powerful Central Bank on our planet? Will banksters RULE over the entire planet after the next financial crisis (coming soon)? Where is all this leading? Isn’t it time for all Americans to WAKE UP and get involved? The banksters will most likely continue with their rigging and manipulations if Americans do not respond soon! 2014 could be a pivotal year for AWARENESS and also ACTION (voting)! Check out alternative websites for new information on our fraudulent banking entities. I suggest: as one good alternative. I am:

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