Howard Blitz

More About: Federal Reserve

Financial Crisis All About Control

Mayer Amschel Rothschild, a very influential banker of the 18th Century, made the comment, “Let me issue and control a nation’s money and I care not who writes the laws.”  That observation could not be more apropos for today’s economic climate. 
In 1913 congress relinquished its constitutional authority of control over the money supply to the independent and private organization of the Federal Reserve System.  Since then the world has experienced the Great Depression and is experiencing the current financial crisis.  There is no oversight of the Federal Reserve System and it is unlimited in its capability to issue money resulting in today’s financial malaise and the one of the 1930’s. 
Because of the massive intervention in the marketplace supported by Franklin Delano Roosevelt and other government officials with all of the public work projects, Social Security, and the increased amount of controls placed upon financial institutions the great depression of the 1930’s was allowed to be extended for ten or so years instead of lasting only one or two years.  “America’s Great Depression,” written by Murray Rothbard, substantiates why the 1930’s depression lasted as long as it did. 
It appears today’s leaders in America do not learn anything from history.  They advocate more interventions, the very activity that has caused the crisis America finds herself in today.  The president, secretary of the treasury, the Federal Reserve board chairman, and many others say that if nothing is done an economic catastrophe will take place that will hurt many individuals financially.  That may be true, but it is because of the very interventions that all of these leaders have imposed that has caused the financial crisis to begin with.  Now, they want more. 
The seeds of an economic correction are sewn for the same reason that an individual experiences a hangover on Saturday morning after drinking all Friday night.  The correction is merely a cleansing of the economic body in order for it to return to “normal” just like the human body does during the hangover.  The only question the individual must answer is how severe the hangover is going to be.  If he stops drinking early enough, the severity will be reduced.  However, if he continues to consume alcohol, the severity will increase proportionately.  Once the drinking starts, though, the individual cannot prevent the onslaught of the resulting hangover.  Once the money spigots are turned on, the ensuing financial correction takes place.  It can be postponed, but at the cost of increased severity.  The more money injected into the system by the Federal Reserve, the greater the severity of the depression.  This is what took place in the 1920’s. 
The intervention proposal before congress has the same effect.  If $700 billion is injected into the system, the greater the severity of the depression to the extent that the entire money system can break down which will severely impact everyone on the planet instead of just a few large financial institutions, banks, and insurance companies. 
The bailout program, though, is really nothing more than the nationalization of the financial system of the United States by the United States federal government.  As Lord Acton, an English historian, said so long ago, “All power tends to corrupt, and absolute power corrupts absolutely.” 
The bottom line is that the federal government has no money with which to do what American leaders so desire.  The United States federal government does not even have one dollar to spend let alone 700 billion of them.  The Federal Reserve is currently infusing dollars into the monetary system that destroys the value of the American currency making business operations near to impossible to conduct. 
In 1933 when Franklin Roosevelt took office one of his first priorities was to require Americans to turn in all of their gold (money) in exchange for $20.67, and Americans, as dutiful and patriotic as they were, did just that.  Franklin Roosevelt and other American leaders then increased the price of gold to $35 per ounce devaluing the dollar and in effect took more control over the life of the individual. 
Today, the Federal Reserve “prints” money to bailout businesses, shore up financial accounts, and cover increased government  expenditures.  Americans should not be surprised, then, when government leaders come along one day and require Americans to accept one new dollar for every ten, twenty, or whatever the exchange rate will be of the old thereby in effect devaluing the currency again. 
Lord Acton and Mayer Rothschild were extremely observant.  The current economic crisis is all about the absolute control of the individual by government officials.

1 Comments in Response to

Comment by Ron Moss
Entered on:

Right ON! The real terrorists are finaly being found out. To battle these terrorists we just need to follow the money. $1.2Billion a day, interest we pay every day to these War Mongers/ They don**Q**t care who is winning or loosing, In either event, They win. CFR Director Cheney can take a bow.

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