It Is NOT The FED; It is Us.

IT IS NOT THE FED; IT IS US!
Now, to the concept of Private Banks lending money to Government: First of all, the British model was the one that allowed Britain to rise to the greatest ascendency the world had seen. Great Britain was able to tap into the accumulated capital of the entire nation, and from the entire world. How? They repaid loans on schedule with scheduled interest. This gave them a high credit rating and allowed them to borrow for less interest than their competitors. This invention in national finance was as important to the development of the Modern Age as the Steam Engines being invented in Britain at about the same time! The benefit of the Government borrowing from Private Banks is the fact that the Government must retain its high credit rating. If the Government itself were in charge, political decisions would replace pure financial consideration in the allotment of capital. This necessarily would result in less efficient use of capital, since a purely financial model would direct capital to exactly the places where it would bring the greatest return. Those therefore are the places where capital is most efficient at creating more capital!

I believe there is a deliberate scheme to convince us that all our economic problems has to do with the private Federal Reserve. They do not begin there. For instance this entire death spiral of the Free market System that we appear to be entering, is due to Government warping the Free market. Then, the damage that the warping causes “requires” more Government involvement. This began with the Housing Bubble bursting. How did we get the Housing Bubble? Political decisions were made to create an “ownership society”. Reagan and Thatcher initiated this as goals, but not as government policies. Under Bush 1, Clinton, Bush2, and Obama this was made actual political policy. Congress allowed Freddie Mac and Fannie Mae, both of which are mamzers of Government/Private Investment intercourse. They made lending for mortgages dependent upon Political consideration and less and less based on credit worthiness. Because the Federal Government guarantied these mortgages, Banks made the loans to people who had not the appropriate credit worthiness (like me for instance!). But the Banks charged higher interest due to the increased “risk”, and they also suckered people into going for Adjustable Rate Mortgages, which may have a very low initial interest rate, even 0%, but are at risk for future upwards or downwards adjustment. The banks charged the some extra interest due to increased riskiness, but they took no risk because the Federal Government in the end guarantied them. As money was easily borrowed, the demand for housing spiked, and thus the price spiked. Everyone was watching as their neighbors’ houses became worth 100K more than they paid! Renters were kicking themselves and knocking down the doors to get in on the bonanza! But, all it took was a slight increase in the Adjustable interest rates to make the home “owners” unable to pay their mortgage. Suddenly their were ore houses for sale and thus with increasing supply, prices plummet. As prices plummeted, people discovered that the house for which they were paying mortgages for, were worth much less now, then when they bought them. It became unsustainable to pay mortgage on a $500,000 house that was worth $400,000. For the many who had put little or nothing on down payment, walking away from an underwater house was merely an economic decision. Therefore, even more houses were on the market, and the prices fall more, and this kept avalanching down. Banks were stuck with foreclosed houses. They were claiming to be at the brink of mass failure rates.
The Government then “had to intervene in the market to save the free market” as GWB said.
Why did this happen? Several reasons, and none were due to the Fed, per se.
The Congress guarantied risky loans. This was to suck up to their constituents, and the Race-baiting accusation of “red-lining” as if Banks would care less what color someone’s skin is if they could make a profit off a loan to them. So the Civil Rights Machine got behind Congress and pushed Freddie and Fannie to expand the eligibility for subsidized loans, not even requiring paycheck stubs, or tax returns! The banks took the guarantees and charged for the risk. Greed. They should not have been bailed out. But, the Fed, and the Big Banks and the Treasury had the same people shuttling between appointments and positions. So, the Treasury that should have told the bankers and the Fed to fuck-off, wrote the checks that Volker claimed were needed to prevent riots in the streets. But is it the Fed’s fault? They are, as we know a PRIVATE Banking group, with their own self-interests. We should blame the Treasury Department, Congress, and the Presidents who all allowed this to occur. And we must blame the character of the American people.
America’s uniqueness was partially due to the Protestant work ethic. This ethic placed a premium on repaying loans. More than just a contract that may be terminated with stated penalties agreed upon in advance, a Mortgage was held honor-bound to pay. Only in our perverse generation have we made our homes into investments for the future. Up until now, people either rented, especially in cities, or owned the country homes and farms. Homes were not just one more investment to speculate with. But, our Constitution was designed for a moral people. It cannot work in an amoral or immoral nation.

Yes, the One World 666 people have encouraged this entire drama. But we had to act it out for it to succeed.
The Fed, and the entire phenomenon of Global Capital have now created a system where inefficiency and corruption will cause the instantaneous exit of capital to where it is respected. If Americans returned to the “Yankee Can-Do” attitude of self- reliance, and once more sought to be moral, we would not be vulnerable to the Globalist Jackals.
I recall therefore that the reliance upon Private capital served Britain and America well, so long as the Government did not interfere in private enterprise. Both nations ascended to power unseen in al of history. And now both re racing to the bottom, and it is due to our loss of identity, and to the Post-Christian, Post-Modern worldview that has bewitched us.

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