A Cloak And Dagger Look At The Federal Reserve

When I went to bed last night I was reading something on the web called Secrets Of The Federal Reserve



It's a cloak and dagger thing that starts out like this:
"Jekyll Island [Georgia]. On the night of November 22, 1910, a group of newspaper reporters stood disconsolately in the railway station at Hoboken, New Jersey. They had just watched a delegation of the nation’s leading financiers leave the station on a secret mission. It would be years before they discovered what that mission was, and even then they would not understand that the history of the United States underwent a drastic change after that night in Hoboken.

The delegation had left in a sealed railway car, with blinds drawn, for an undisclosed destination. They were led by...."
Some of the names on the list were:
Senator Nelson Aldrich, head of the National Monetary Commission
Shelton (?), Aldrich's private secretary
A. Piatt Andrew, Assistant Secretary of the Treasury, and Special Assistant of the National Monetary Commission
Frank Vanderlip, president of the National City Bank of New York
Henry P. Davison, senior partner of J.P. Morgan Company
Charles D. Norton, president of the Morgan-dominated First National Bank of New York
Benjamin Strong, also known as a lieutenant of J.P. Morgan
Paul Warburg, a recent immigrant from Germany who had joined the banking house of Kuhn, Loeb and Company in NY.

The story goes on to say: "Six years later, a financial writer named Bertie Charles Forbes (who later founded the Forbes Magazine; the present editor, Malcom Forbes, is his son), wrote: 'Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily hieing hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance.

I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written . . . . The utmost secrecy was enjoined upon all. The public must not glean a hint of what was to be done. Senator Aldrich notified each one to go quietly into a private car of which the railroad had received orders to draw up on an unfrequented platform. Off the party set. New York’s ubiquitous reporters had been foiled . . .

Nelson (Aldrich) had confided to Henry, Frank, Paul and Piatt that he was to keep them locked up at Jekyll Island, out of the rest of the world, until they had evolved and compiled a scientific currency system for the United States, the real birth of the present Federal Reserve System, the plan done on Jekyll Island in the conference with Paul, Frank and Henry . . . . Warburg is the link that binds the Aldrich system and the present system together. He more than any one man has made the system possible as a working reality.' "

Google "Aldrich currency report" to continue....

http://query.nytimes.com/mem/archive-free/pdf?_r=1&res=9F07E1D91130E733A25750C0A9659C946297D6CF

A Cloak And Dagger Look At The Federal Reserve

This has been copied

Thanks to mike762

I started a thread at the other place called Has anyone heard of Seeking Alpha , James West, or the Midas Letter?      mike762, (who's been so patient with me as try to understand this stuff over there,) said something that caused a lightbulb to come on

...Gold and silver have no counterparty who must perform to give them value. ...

One side of the deal fails to perform, like pay his mortgage or his credit card bill, then the products based upon that fail too.

...If there's not enough money in capital reserves to cover the loss, then the entity is insolvent. That is where our system is today. ...

...The Federal Reserve and other central banks are trying to hide this ...

by taking these [insolvent entities] as "collateral" and giving out dollars in return.

[But] The banks are not loaning out this money because they have to strengthen their balance sheets, ....

...the various derivatives that are floating around...There are more than $1,000,000,000,000,000 (that's a quadrillion) notional value

of derivatives in the financial system worldwide

held by banks, pension funds, individuals, municipalities etc.

When these products fail, that notional value becomes real value,

and the loss must be accounted for on the books.

James West Article Part I

Yesterday I read an interesting article posted by Barak - The Federal Reserve's Self-Imposed Dilemma. (A lot of my posts here are prompted by and intermingled with posts from the forum Hunter's Campfire at 24hourcampfire.com. I'm going to change the header here to reflect this.) For now I'm only mentioning Barak's thread so I can find it later. Barak is very knowledgeable about this economy stuff, along with Mike, Archerhunter, and a few others.

I was trying to find out if lenders were really forced to make loans to bad risks.
So I Googled "Mandatory loans to unqualified borrowers". One of the first results caught my attention - U.S. Debt Default, Dollar Collapse Altogether Likely - an article written by somebody I've never heard of on a website I've never heard of. Nevertheless, it's interesting enough that I want to digest it further.

James West writes:

The prospect of the United States defaulting on its debt is not just likely. It's inevitable, and imminent.

The regulatory black holes into which sanity and reason disappear on a daily basis are soon to collapse under the mass of their sheer size. The circle jerk going on among G7 governments has to end – the steady advance of gold, even in the face of a managed price, exposes the real value of the U.S. dollar, as opposed to its apparent value expressed in the dollar index.

Ok. So here come my first questions.

What are G7 governments?
From Wikipedia: "The Group of Eight (G8, and formerly the (G6) or Group of Six) is a forum for governments of eight nations of the northern hemisphere: Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States; ... The G8 can refer to the member states or to the annual summit meeting of the G8 heads of government. The former term G6 is now frequently applied to the six most populous countries within the European Union."
Seems like I can remember the first one of these. It was kinda like "I'd like to buy the world a Coke...." And the reason they get along so well now is because they don't do anything.

Who manages the price of gold?
According to Wikipedia: "The usual benchmark for the price of gold is known as the London Gold Fixing, a twice-daily (telephone) meeting of representatives from five bullion-trading firms. Furthermore, there is active gold trading based on the intra-day spot price, derived from gold-trading markets around the world as they open and close throughout the day.
     Today, like all investments and commodities, the price of gold is ultimately driven by supply and demand. Unlike most other commodities, the hoarding and disposal plays a much bigger role in affecting the price, because most of the gold ever mined still exists and is potentially able to come on to the market for the right price.
     Given the huge quantity of stored gold, compared to the annual production, the price of gold is mainly affected by changes in sentiment, rather than changes in annual production. " (There's more good stuff here, but that would lead me into another wormhole....)

What is the dollar index? (See this )
Wikipedia: "The US Dollar Index (USDX) is a measure of the value of the United States Dollar relative to a basket of of foreign currencies. It is a weighted geometric mean of the dollar's value compared to the euro (EUR), Japanese yen (JPY), Pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss franc (CHF).
     It was started in March 1973, soon after the dismantling of the Bretton Woods system. At that time, the value of the Dollar Index was 100.000 and has since traded as high as the mid-160s but also into the low 70s. As of October 2008, the USDX was trading in the mid-80s. On March 6, 2008, the index touched 72.89, the lowest since its inception in 1973. It continued downward and reached 70.698 on March 16.
     The index is updated 24 hours a day, 7 days a week. It is listed on ICE Futures Exchange US (e.g., New York Board of Trade [NYBOT])."


I'm gonna have to break this down into another post - called James West Article Part II