By Al Duncan
February 25, 2011
NewsWithViews.com
Most now know that the Federal Reserve Bank (Fed), is a private central bank owned by International Bankers. Although the Fed masquerades as a Government institution it is no more a Government institution than Federal Express. Even though the Fed performs all the functions of a Central Bank, its name misleads the public into believing that it operates on their behalf.
The U.S. Constitution clearly states in Article 1 Section 8 that: “The Congress shall have Power To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures,” under the Federal Reserve Act of 1913 the private bankers can now create money, actually credit, and loan it to the U.S. with interest.
With every U.S. dollar borrowed from the Fed, a credit is recorded on the Fed’s behalf and a debit, including interest, is posted on behalf of the American public. The actual U.S. national debt owed to the International Bankers who make up the Federal Reserve Board, including the IOUs in the Social Security Fund, the IOUs in the Medicare Fund and all the rest of the debts normally uncounted in government statistics is approximately $62 Trillion.
On March 18, 1988, Ronald Reagan implemented Executive Order 12631, called The Working Group of Financial Markets; informally known as the Plunge Protection Team. Former Federal Reserve Board member Robert Heller explains E.O. 12631 in a Wall Street Journal article: “The Fed could support the stock market directly by buying market averages in the futures market in order to stabilize the market as a whole.”
To simplify Mr. Heller’s definition, E.O. 12631 enables the Fed, via the working group, to manipulate U.S. stock markets through the use of government (taxpayer) funds. The Fed can also use taxpayer money to buy stocks and other investments such as stock index futures, even though the law strictly forbids these manipulative and market-controlling acts.
On October 6, 2008, Paula Reid of CBS News stated in an article called Market Crisis of 2008, “The working group issued a statement indicating that it was taking multiple actions available to it in order to stabilize the financial system. The government (actually, the Fed) may wind up owning shares in the firms to which it has provided loans, as they will receive warrants as collateral for these loans.”
This means, the Fed, a private central bank owned and controlled by private businessmen, can at-will use taxpayer dollars to manipulate the stock market to enrich themselves.
This is Fascism, although corporatism would be a more accurate representation.
According to a government website, www.sec.gov, “The mission” of the U.S. Securities Exchange Commission (SEC), “is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” Since the inception of the SEC in 1934, Goldman Sachs has provided the nation with a SEC Commissioner, a Chairman of the SEC, and a Head of the SEC’s Enforcement Division.
In an article dated April 7, 2010, CBS News stated, “The revolving door between Goldman and government reveals at least forty-eight former employees, lobbyists or advisers at the highest reaches of power both in Washington and around the world.”
The CBS News article continues, “For example, former Treasury Secretary Henry Paulson is a former Goldman CEO; Arthur Levitt, the head of the SEC is a now a Goldman adviser; and former House Majority Leader Dick Gephardt is now a paid lobbyist for the firm.”
Goldman employees have maintained strategic positions within the U.S. government since 1965. Goldman hires former politicians and civil servants, as readily as it supplies them. Clinton had 8 previous Goldman employees in key decision-making positions in his Administration, Bush had 19, and Obama has 14. There is no distinguishable difference in political parties, once a donation is accepted the individual is compromised.
Henry Paulson was Chief Operating Officer of Goldman Sachs averaging around $37 million a year and at that time he was also the owner of approximately $700 million in Goldman Sachs’ shares. Paulson, the great public servant that he is, left Goldman Sachs multi-million dollar salary to become U.S. Secretary of the Treasury at a salary of $174,000 a year. On September 19, 2008, Paulson, along with Chairman of the Fed, Ben Bernanke, obtained $700 billion dollars from Congress. Paulson, given complete authority of this money by the House, Senate, and the president of the U.S. gave American Investment Group (AIG) $200 billion, of which AIG gave Goldman Sachs $12.9 billion, enriching Goldman Sachs shareholders, including that great public servant, Henry Paulson, handsomely.
According to New York Times, May 7, 2009, Stephen Friedman, another great public servant, was a member of Goldman’s board at the same time he was chairman of the New York Fed. Friedman helped to put together the deal under which AIG’s CDS counter-parties were paid out at 100 cents on the dollar. By approving Goldman’s request to become a bank holding company, Friedman helped facilitate the most profitable advantage to Goldman’s existence thus far. He then inexplicably bought tens of thousands of Goldman shares in the open market—a clear conflict of interest given his position at the Fed—resulting in his resignation shortly afterwards.
On May 13, Jonathan Weil for Bloomberg wrote: “Rigged-Market Theory Scores a Perfect Quarter. He goes on to explain, “In a feat that would seem to defy all odds, Goldman said its daily net trading revenue topped $100 million 35 times last quarter out of 63 trading days.”
A May 13, 2010 Bloomberg article states, “The odds that you’d post a daily net gain 63 times in a row, would be about one in 5.7 billion. Even if you had a 95 percent likelihood of a winning day, you would have only a 3.9 percent chance of doing it 63 trading sessions in a row.
Considering Goldman Sachs’ million dollars an hour winning streak for 63 days straight (it was not just Goldman, it was also JPMorgan, Citigroup and Bank of America that disclosed similar eye-popping stats) we can better understand how they pulled off this thievery. And whose name do we discover as a major shareholder in all these conglomerates? None other than the notorious trillionaire David Rockefeller.
Weil continues, “If a too-big-to-fail bank’s traders were able to make money every day of a quarter, were they really trading in any normal sense of the word? Or would vacuuming be a more accurate term?”
According to the Wall Street Journal, April 17, 2010, “Goldman Sachs Group Inc. was charged with deceiving clients by selling them mortgage securities secretly designed by a hedge-fund firm, Paulson and Co., who made a killing betting on the housing market’s collapse.” The bank did not disclose the role of the hedge fund, that helped put together the deal as part of its bet against housing. And while Goldman paid a $550 million fine to settle the case, the SEC did not charge Paulson with any wrongdoing.
Zubi Diamond, author of the “Wizards of Wall Street,” states, "The hedge fund short sellers can now crash the market, panic shareholders out of their stocks, buy to cover their short positions for hefty profits, and then buy back in at the bottom to open long positions and then recover the whole market indexes to normal levels. These market manipulators have the ability to drive prices down and then drive them back up, all within a 15-minute period."
Many may have seen the tense inquisition between the Senate Permanent Subcommittee on Investigations and Goldman Sachs. But most aren’t aware that many of those asking the questions have been recipients of Goldman’s political donations. It’s the finest display of political theater, smoke and mirrors, a dog and pony show that keeps the gullible public appeased, thinking that they are experiencing history in the making.
According to the Center for Responsive Politics, ten of these senators have together received more than $1million in campaign contributions from a combination of Goldman’s political action committees and its employees and their families. Since the SEC filed no criminal charges, the entire hearing was a charade—political theater at its best. Civil charges result only in fines, when prison is warranted. At $1 million an hour for 63 days, a $550 million fine is merely a payoff to public officials, a cost of doing business and a green light for Goldman to continue its fraudulent business-as-usual.
Over the years, various loyal men in Congress have introduced Bills to repeal the Federal Reserve Act of 1913 and to redeem control of our money system. None of them has been acted upon by our alleged representatives who are sworn to uphold our Constitution.
Rep. Ron Paul, one of the only members of the House (or Senate for that matter) worth his salt, sponsored H.R. 1207, a bill requiring that the Federal Reserve be opened to audit by Congress. The plan compiled over 300 co-sponsors in the House before being sent to committee.
But in a later interview with a Bloomberg reporter, Paul stated, “The teeth have been ripped out of the bill and there’s nothing left; it’s been gutted. This is not a partisan issue. People all over the country want to know what the Fed is up to, and this legislation would have helped them do that.”
I am no financial advisor, but I certainly have enough financial sense to know when the markets are rigged.
Like a giant octopus, the tentacles of corruption have infiltrated the Executive, the Legislative, and the Judicial branches of our government. The bankers, the corporate heads and the public officials are drinking from the same financial trough, funded by the unsuspecting public. Thus, an ominous darkness is engulfing America like a fog, and I don’t see even a flicker of light able to dispel it.
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