Money and the Blame Game: Seeing Beyond ‘Occupy Movements’ and ‘End The Fed’


Greg Glaser
Natural News
December 3, 2011

(NaturalNews) To say fractional reserve banking is bad is like saying that fire is bad – it’s kind of silly for its simplistic assumption. The relevant question is: what are you using it for? Morally, who has committed the greater offense: the farmer who uses loan money to purchase toxic pesticides to spray over his land and workers, or the banker who gives that ‘chemical junkie’ a loan? What about the consumer who purchases cage-tortured chicken from Safeway, or the bank who gives that ‘zombie’ a credit card to buy whatever his heart desires? Or what about the investor who purchases $1,000,000 in Treasury securities, or the Federal Reserve Banking system that turns those securities into $10,000,000 cash for future loans to sustain the American empire?

When everybody (including you and me) working within the banking system is destructive to some degree, where is the morality in taking sides within that system? Does America possess enough intellectual and moral currency to pursue a redirected plan of action entirely? Literally, can we present formal plans today to reboot the entire system: Civil Action Network? Americans Elect?

If we Americans over the last 100 years had primarily used our available credit (empowered by the fractional reserve banking system) for organic living in daily affairs, our world would theoretically be very different today – filled with high-quality goods, services, arts, inventions, homes, cities. You might say Americans could have used fire responsibly to warm the world, and used the water of debt forgiveness to keep the flames in check.

Indeed, just imagine if (we) Americans had practiced better sharing and forgiveness across the entire world, as compared to perpetual war, pollution-based economy, false religious dogma, civil oppression, genetic tinkering, military black ops, advanced weaponry deployment, unsustainable agricultural practices, cheap toxic goods, inhumane treatment of animals, pharmaceutical medication, and so forth. That’s right, the American bed (that you will sleep in tonight) was not made by bankers.

The self-proclaimed elite bankers are really more like pimps who have profited financially from the beds of modern commerce, beds that are often “Made in the USA”. And those beds are now shamefully squeaky with wear from high-priced whores — the aforementioned objects of indulgent worldly affections (perpetual war, pollution-based economy, false dogma, etc). So let us take some responsibility and stop over-blaming “Wall Street” the pimp and “Congress” for our collective and individual transgressions against man and nature.

In many respects, modern money mechanics is not even capable of claiming to be a science. Consider for example how readily distinguishable it is from an objective/unbiased science like classical geometry. Money mechanics in today’s markets is mostly a complex scheme of exploitation shrouded in unnecessary names and academic formulas – like a genetics laboratory creating chimeras for military experiments.

I won’t attempt to summarize here the innumerable books and articles of the independent journalist community proving-up real conspiracies. Suffice it to say that various secret-society and occult connections at the top levels of each of those sectors may surprise the average American. Indeed, in many cases the mere pursuit of money is not the ultimate goal of the powers-that-be. Rather, the object of affection is power over man and earth. Surprised? Disagree?

These analogies above (pimps, whores, genetics labs) rely upon research and awareness of the selfish practices of the military-industrial-economic-political complex. By contrast, your average John is a disgruntled American who thinks it’s cool and logically defensible to join the mob of blaming the banking system (pimp) and yet in the same panting breath our STD-laden John calls for more jobs in the business of destruction (prostitution).

By contrast, pursuing a defensible view of reality is a process of humility, diligence, and intellectual honesty. So when reading the news for evidence about the new world order, please beware the wolves in sheep’s clothing and propaganda on all sides. Indy news is no exception.

Moreover, there is no central repository for conspiracy evidence, but you can often find helpful insights from independent research beacons in their areas of specialty. For example: Center for Global Research for war research; Prison Planet for liberty research, Natural News for health research, Arctic Beacon for Vatican persecution research, Third World Traveler for book reviews, and so on. Read, fact-check, think logically, compare perspectives, repeat.

Now, with that said, let’s examine the financial tools of the American money pimp…

Overview of the Federal Reserve System

For an overview of the fractional reserve system, we can read a relatively candid account straight from the Fed itself: The Federal Reserve System: Purposes & Functions.

The Federal Reserve Bank (inconveniently dubbed “the Fed”) operates as an intermediary (debtor and creditor) between the United States Government (usually debtor) and private banks (usually creditor), in order to manage the process of making, tracking/accounting, and destroying money.

“The Federal Reserve’s income is derived primarily from the interest on U.S. government securities that it trades through open market operations. Other sources of income are the interest on foreign currency investments held by the System; fees received for services provided to depository institutions, such as check clearing, funds transfers, and automated clearinghouse operations; and interest on loans to depository institutions (the rate on which is the so-called discount rate). After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury.” FAQ with New York Fed.

It is well known and documented that the Federal Reserve System as a whole takes simple loans and lumps them together into complex securities and trusts, which produces a money multiplier effect. This allows an ordinary $1,000 cash deposit at your local bank to grow exponentially into $10,000 in cash deposits in the banking system as a whole. Money Masters FAQ; Fiat Empire.

The primary linchpins to the continuity of the exponential paper money system are that people must perceive there is value in
(a) the U.S. dollar,
(b) U.S. Treasury securities, and
(c) the process of securitization of consumer and business debt.

Over the years, each linchpin has been supported by the American government, which strives (even criminally in large measure) to maintain a steady GDP together with a large income and corporate tax base. This explains how the American government justifies its support for large polluters (primarily corporations and homeowners) that keep the tax-base high and steady, and the great imperialistic provider (US military-industrial complex) of raw resources that keeps GDP high and steady.

The reason economists agree that the system relies on strong demand for U.S. Treasury securities (bonds/bills/notes) is because those securities serve as collateral at the top of the system for more money printing. And those securities themselves rely on the securitization of consumer and business debt, which relies on a constant circulation of Federal Reserve Notes at depository institutions (i.e., local banks).

If the printing and/or steady circulation of Federal Reserve Notes were to stop, the system would need some debt forgiveness to get ‘back on track’ (in supporting the American empire’s role of global conquest and destruction; a role it shares with other governments).

It is also helpful to understand that the Federal Reserve System is not designed to contract/shrink the money supply, except only very temporarily. Think about it — whose debt would need to be forgiven at this point in history to return to some kind of banking normalcy?
First, the debt (treasury securities) of the federal government would need to be forgiven (destroyed).
Second, the Federal Reserve Bank itself would ‘benefit’ from having its own debt (Federal Reserve Notes) forgiven (destroyed), because once the federal government defaults on its debt (due to lack of tax revenues), then the Federal Reserve Bank’s holdings of Treasury Securities become utterly devalued. This causes a corresponding devaluation (lower demand) in Federal Reserve Notes that were exchanged for Treasury Securities. As these all fall together, the debt-based system loses power (perception of value).
Third, private banks themselves would need debt forgiveness to cover reserve shortages, especially if the currency is experiencing inflation due to the above two factors.

Virtually all private banks are undercapitalized today, not only because of the ’10 to 1 reserve ratio’ that outstrips collateral holdings (i.e., the value of the deed to your home), but because banks pay large annual salaries to employees and large dividends to investors. Over the course of 100-years, this model of operation (undercapitalization) has produced massive personal “wealth” on paper (in dollars, stock, gold certificates, property deeds, etc) for a small number of men (and their holding companies) rather than institutional “wealth” for the system itself.

With that said, it would be folly to overlook the entrenched interests here that are in place to prevent the exponential paper debt system from collapse (especially regarding military power).

Indeed, the reason the American financial system is extremely unlikely to crash before the system of debt (treasury securities, consumer/business securities, federal reserve notes) is restructured is because the international central banking system operated by the Bank of International Settlements (BIS) is already in place to finance the American empire’s continuity. See collection of articles: The World Central Bank: The Bank for International Settlements. The most prominent mechanism for this continuity, which is already in place, will likely be Special Drawing Rights (SDRs). And importantly, the role of gold certificates and carbon credits in providing perceived value and corporate/public ‘buy-in’ should also be expected to feature prominently in the new/existing international banking scheme.

Therefore, ending the American Federal Reserve Bank by itself is not a solution to the economic crisis anymore than ending the New York Yankee franchise is a solution to ending steroid use in sports. The monetary problem is born of unsustainable production/consumption patterns that are themselves sustained by an exponential debt-based system. The BIS simply continues the same financial system on an international level.

So we remember, fire is not bad by itself. If the world’s production/consumption patterns changed to ensure sustainable living, the exponential money system currently in place would theoretically produce green living opportunities exponentially faster. Moreover, a healthier banking model would propose competition among banking systems, so the whole economy would not be wrapped up in a debt-based system. A little forgiveness would go a long way too. Indeed, it is morally necessary in a world of destroyers.

Occupy Wall Street Is Controlled Opposition?

Vladimir Lennin is quoted notoriously, “The best way to control the opposition is to lead it ourselves.”

“Controlled opposition” is a sad but consistent theme throughout history. Here is how it works: large political underdogs with momentum prevail over established aggressors, but (either before or after the underdog succeeds) the underdog is overtly hijacked by the powers-that-be (the original aggressor), thereby becoming the very aggressor originally opposed. See, Restricted Movements, by Greg Glaser.

“There is nothing more common in history than for oppressed people to rise up against their masters and, at great cost in treasure and blood, throw off the old regime only to discover that they have replaced it with one that is just as bad or worse. That is because it is easy to know what we dislike about a political system but not so easy to agree on what would be better. For most of history, it has been the habit of men to focus on personalities rather than principles…. it is just as important to know what we are for as it is to know what we are against.” G. Edward Griffin, The Future is Calling, p. 38.

And indeed, independently gathered evidence shows the “Occupy Wall Street” movement was planned from the beginning of its largess to serve global financial cartel interests.

As summarized well by Keith Gardner, “Occupy Wall Street started out as a non-partisan grass roots movement against the banker bailouts and the corporate agenda of the Obama administration. It was co-opted by the DNC and turned into a partisan movement approved by the Wall Street and the corporate media.” Wall Street Buys Out ‘Occupy Wall Street’. See also, The Robin Hood Tax: Occupy Movement now Marching Straight Off the Globalist Cliff, by Patrick Henningsen; Occupy Wall Street: A Globalist Op Designed to Destroy Efforts to End the Fed, by Kurt Nimmo.

With that noted, we do well to also realize there are very important financial issues to which the OWS movement is rightfully pointing (including even research highlighted within this article). For example, OWS often discusses propositions of free banking provided by States.

And OWS often points to the derivative problem, “The notional value of the world’s derivatives actually is estimated at more than $600 trillion. Notional value, of course, is the total value of a leveraged position’s assets. This distinction is necessary because when you’re talking about leveraged assets like options and derivatives, a little bit of money can control a disproportionately large position that may be as much as 5, 10, 30, or, in extreme cases, 100 times greater than investments that could be funded only in cash instruments. The world’s gross domestic product (GDP) is only about $65 trillion, or roughly 10.83% of the worldwide value of the global derivatives market, according to The Economist. So there is literally not enough money on the planet to backstop the banks trading these things if they run into trouble.” Four US banks hold a staggering 95.9% of U.S. derivatives: The $600 Trillion Time Bomb That’s Set to Explode, by Keith Fitz-Gerald; see also Captured by the Debt Spider, by Ellen Brown.

The underlying problem with the Occupy Wall Street (OWS) movement is that ‘consumer-junkies’ (including both ‘conventional consumers’ and those dependent on a consumerist economy for financial gain) are virtually incapable of accepting sustainable solutions until they/we realize the primary need to completely overhaul their/our military-industrial complex and pollution-based economy, in favor of genuine forgiveness and organic community. No financial system (even a 100% asset-based currency) is capable of sustainable strength in a world devoted to imperial military policies and unsustainable production and consumption practices.

Orwell demonstrated this quite eloquently in his novel “1984″ — doublespeak is tyranny by the ruling class. No amount of OWS or Wall Street propaganda really changes the hard reality of the polluted ground on which we stand/fall.

Money Is Debt, Owned by Banking Insiders

To create money from debt, the Federal Reserve Bank becomes a debtor itself by utilizing a complicated bond and security selling process. The Fed keeps a record of how much money to print and circulate, and it keeps track of the accounts (assets and liabilities) of conventional banks (like Wells Fargo). Interestingly, it is these conventional banks that make about 98% of the money/profit from the Federal Reserve System. Money Masters FAQ. Some have referred to aspects of the process as ‘The Mandrake Mechanism’. Here is a useful explanation: What Is The Mandrake Mechanism?, by G. Edward Griffin; and see this article: The Federal Reserve Open Market Operation

So it is conventional banks and their investors that reap the lion’s share of banking profits, not the Federal Reserve Bank. This observation does tend to be overlooked by the OWS movement, perhaps because it involves a certain degree of semantics — the conventional banks and their investors are (per dollar percentage-wise) mostly comprised of the same persons and entities that own the Federal Reserve Bank.

You might say the Federal Reserve Bank is just their political/policy arm that helps ensure continued profit in the American economy. It is their other arm (the conventional banks themselves) that accepts all the money and distributes it to investors periodically. Together with foreclosures, this is how most banking profit is funneled to a small group of wealthy international financiers and institutions (including especially the Vatican) who have held stock in local and national banks since the Fed’s creation in 1913. See e.g., Creature from Jeykll Island, by G. Edward Griffin; Does the Vatican Hold Your Mortgage?, by William Thomas; Secret History of the Jesuits, by Edmond Paris. And regarding the unsustainable system of ever-spiraling debt (with references to the lack of US savings), see How Debt Money Goes Broke, by Steven Lachance; How the Fed Took the Money Out of Monetary Policy, by Econ Weekly.

In the big picture, there appears to be an innumerable amount of unholy alliances and conflicts between the international bankers, the aristocratic Zionists, the Catholic hierarchy, the English crown, and all manner of secret societies within these groups, not to mention oppressive military regimes all over the world. All these roads lead to destruction and accusation.

And each of these groups produces disinformation agents willing to point the finger at each another where convenient. The resulting confusion and chaos never settles in any generation, because the complex powers that create chaos also profit from chaos. Disorder, riots, and armed revolution all lead to false solutions – more war, more oppressive laws, and more resource domination by the wealthy. And sadly, this whole research subject of organized crime often gets thrown into the ‘conspiracy theory’ bin.

Let us also recognize the Fed’s claim that “Each Federal Reserve Bank is required by law to pledge collateral at least equal to the amount of currency it has issued into circulation. The bulk of the collateral pledged is in the form of U.S. Government securities and gold certificates owned by the Federal Reserve Banks.” How Currency Gets Into Circulation, by the New York Federal Reserve Bank.

Now, this may sound a bit circular because it is circular, “Federal Reserve notes are obligations of the Reserve Banks. The Reserve Banks secure the currency they issue with legally authorized collateral, most of which is in the form of U.S. Treasury securities held by the Reserve Banks.” The Federal Reserve System: Purposes & Functions, page 86.

As an important aside, I will note that today even this collateral process is subject to question, given the recent “shell-game” with foreign agency banks and agency bonds. See e.g., Shell Game: How the Federal Reserve Is Monetizing Debt, by Chris Martenson; compare Is the Federal Reserve printing money in order to buy Treasury securities?, by the Board of Governors of the Federal Reserve System; Payment System Risk Guide, by the Board of Governors of the Federal Reserve System (discussing the process of pledging collateral); And for discussion of public deposits, see How to Use Collateralization to Safeguard Public Deposits, by M. Corinne Larson.

But on the whole, our analysis of the Fed comes right back to the amorphous ‘mandrake mechanism’. As the Federal Reserve Bank of Chicago once described in a book called Modern Money Mechanics, “The most important nonbank depositor is the U.S. Treasury. Part of the Treasury’s operating cash balance is kept in the Federal Reserve Banks; the rest is held in depository institutions all over the country, in so-called ‘Treasury tax and loan’ (TT&L) note accounts. (See chart.) Disbursements by the Treasury, however, are made against its balances at the Federal Reserve. Thus, transfers from banks to Federal Reserve Banks are made through regularly scheduled ‘calls’ on TT&L balances to assure that sufficient funds are available to cover Treasury checks as they are presented for payment.” Modern Money Mechanics, by the Federal Reserve Bank of Chicago; see also Modern Money Mechanics: A Workbook on Bank Reserves and Deposit Expansion, by Federal Reserve Bank of Chicago.

It also helps to understand that banks routinely finance long-term loans with short-term deposits. As one commentator summarizes eccentrically, “No doubt, you have heard that the U.S. government borrows a huge amount of money. They do so by having the U.S. Treasury issue various types of bonds. To borrow money for a short amount of time (defined as 1 year or less), the Treasury issues what are called Treasury Bills. To borrow money for a medium length of time (between 1 and 10 years), they issue Treasury Notes. To borrow money for a long period of time (over 10 years), they issue Treasury Bonds.” How the Fed Creates and Destroys Money, by Harley Hahn.

Note also that to accomplish all of the treasury trading, “A dealer bank operates as a securities dealer by underwriting and trading publicly registered securities. ‘Investment banks’ are dealer banks that do not have any depository function. Dealer banks which have been designated as “primary dealers” engage transact with the Federal Reserve System’s open market desk when it engages in open market operations.” Securitization, by Gorton and Metrick (2011), p. 45 n. 27.

It is becoming the majority view among the public that the mandrake mechanisms (that create money from debt) are purposely designed to be complex in order to give the illusion that there are sufficient physical assets (collateral) pledged by the banks that support the debt (federal reserve notes). The complexity on its face is mostly just a number of purchases and transfers of pieces of paper with different names (securities, bonds, bills) between the United States Treasury and the Federal Reserve and the depository institutions that do business with the Fed, all according to formulas that simply feed off each other’s paper trail.

The Federal Reserve is creating money by moving pieces of paper, and loaning this paper to the U.S. government and then collecting interest on the loan. And depository institutions make profit on the exponential interest created by the system.

It is also important to appreciate that American taxpayers (through treasury securities) are providing the collateral for the Federal Reserve notes. These securities are paid down by income taxes, but as the securities grow ever larger it is more difficult to pay even the interest on the debt.

So when the Federal Reserve starts purchasing Treasury securities in large quantity (because there are no other buyers), it is a sign of fiat money and potentially hyperinflation. Ponzi Scheme: The Federal Reserve Bought Approximately 80 Percent Of U.S. Treasury Securities Issued In 2009, by Economic Collapse.

Now, to some extent and during some eras of the American empire there has been a sizeable collateral/backing of the debt by the bankers. For example, some consumer loans are sold to investors – they are ‘securitized’. Who are these investors? Again, in large measure it is the same people and institutions who own the banks. It may even be you in some nominal way if you invest in things like mutual funds.

But in the big picture today, the banks behind the Federal Reserve own so many federal reserve notes, securities, treasuries, gold certificates, deeds, mortgages, and so on that the American taxpayer (through U.S. Treasury securities) is the only real debtor providing collateral for the federal reserve notes, because the American taxpayer (and the American government) are the only ones who will default on their debt obligations (assuming a law does not ‘correct’ the imbalance).

It should also bear mentioning regarding those gold certificates, that due to a lack of auditing and scrutiny it is highly uncertain (to the public) how much gold is really in the possession of the United States. Auditing Gold Reserves, by Bradley Jansen.

What we do know is that after financing costly wars (such as Vietnam), international financiers used the Federal Reserve System to ensure that Congress pledged US gold reserves (bars and coins) as collateral for the debts of the American government.

So we don’t really know whether the international banks have already taken possession of much of America’s physical gold stored in places like Fort Knox, and moved it overseas. We just know that ‘gold certificates’, like the Treasury securities, are just paper – owned by the “wealthy.”

This explains how financially wealthy individuals are able to keep Congress and the U.S. Treasury under their control. On the whole, Congress primarily does the bidding of ‘the economy’, and the economy (from the government perspective) can be seen as a series of GDP activities that promote the collection of taxes through a tolerable standard of living/pollution/crime. To your average Congressperson, the shuffle of paper can be seen as a series of often untouchable banking mechanisms to keep the economy going.

The international bankers likely pre-calculated the collapse of the American empire under the exponential debt system. The paper mechanism ultimately does not support the weight of reality.

Likewise, these bankers must also have reports showing the mechanism did indeed support massive wealth consolidation and military conquest for decades, because America had amazingly abundant resource and human capital reserves. But ultimately the reality of the oppression becomes manifest as the ‘ability to produce’ is outweighed by the exponential growth of the debt.

Ancient Rome fell because, among other reasons, the citizens no longer wanted to pay taxes to support the obvious oppression of constant military conquests and Latifundia (large farm estates that produced cheap goods through monoculture crops and slave labor). The system had become manifestly unsupportable.

America is very much like Rome. And America has deeply sinister connections with other Roman-like powers, such as the Vatican, the U.N., and the U.K., just to name a few. Choosing to overlook these connections in one’s research of ‘how the world really works’ is like choosing to watch a baseball game through binoculars focused only on left field.

Today, one might try to feel comforted by the knowledge that the bankers haven’t been able to take possession of the American landscape. But that would be wishful thinking. Through countless foreclosures and land purchases over the last century especially, financiers own much of America.

Exponentially worse though is all the environmental destruction caused by industry, military, and poor land stewardship across the country. How much of that destruction was committed in the pursuit of money and undeserved power? The banks didn’t do that alone – they were just the pimps.

Concluding Remarks

My primary criticisms of the Federal Reserve system:
(1) The monopoly on money creation
(2) The lack of systemic debt forgiveness mechanisms that would, for example, require the Federal Reserve to extinguish money in proportion to debts forgiven in bankruptcy court and foreclosures
(3) The premise that the Federal Reserve Bank can purchase Treasury Bills with money it prints without pledging hard asset collateral. And this last criticism is merely pointing to the lack of a temporary bandage, rather than a mechanism for inherent stability.

Personally, I recommend trying to reboot America on debt forgiveness and environmental stewardship principles. And in this hypothetical new country, I envision we would utilize a decentralized and free banking system operated by the U.S. Treasury in competition with the 50 States and the private sector. No monopolies, no special interest rules. I’d even venture hypothetically – ‘dinars to donuts’ – the successful currencies would be asset-based.

However, according to my research and thinking, I don’t count on this anytime soon. Instead, I expect the present empires of power will first reap the destruction they have sown.


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