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

A "Fire" Thread - What's Wrong With The Economy

derby_dude started a "Fire" thread called What's Wrong with the Economy on 01/29/09. He said:

"For about 100 years our economy has been a 'borrow and spend' economy. The consumer can't borrow any more so he must pay down his debt. When the consumer has built up his savings and paid his debt down to a more manageable level he will start spending again. No amount of stimulus from Big Uncle is going to get us out of this.

I look for unemployment to hit around 30%, the illegal immigrants to go home, many people working for $7.25 an hour dang thankful they have work, inflation pushing toward 20%, foreclosures to skyrocket, bankruptcies to hit the stratosphere, etc. I look for at least a 10 year deep depression if for no other reason that the government will do everything it can to make last at least that long"

I spent the better part of the day trying to understand responses to his thread. To give an idea of how ignorant I was about this stuff: Bristoe said "The "so called" stimulus package is just a diversion to keep people thinking that something is being done by the government to fix the economic disaster. Just more theater." I said, "So, are you saying it'll pass, but the money isn't really there, so the money won't really be thrown up in the air, so to speak, - no harm done? No real harm, that is."

Bristoe said, "No,..I'm saying that it'll pass and the money will *always* be there. It's just paper. If it ever runs short they'll just print up more. The government never runs out of money. When it needs some, the Federal Reserve just runs some off for them. Of course, everytime they run off a batch of new money it makes the existing money worth just that much less."

Part of my problem understanding this comes from the idea that our money has to be backed up by something valuable. It is, but that 'valuable something' is the same 'valuable something' that's already backing up our money. Every time the Fed prints and issues more money, it divides the 'valuable something' into even smaller pieces; thereby causing our money to be worth even less.

According to the U.S. Department of the Treasury FAQs,Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy." So Federal Reserve Notes are backed by the Gross Domestic Product.

From an English article (The Money Oracle): "...a graphical representation of the fall in value of the US$ since the Federal Reserve took control of the monetary system"



There's a lot of this kind of stuff on the web about the Federal Reserve. Most of it I take with a grain of salt. I don't take Glenn Beck with a grain of salt:
Glenn Beck: Look Behind The Curtain

Lava Tubes, The Federal Reserve, and The Economy

ehunter started a "fire" thread called Well I have been laid off on 01/27/09. It started a discussion about the deteriorating economic situation wherein I eventually said, "I guess I have a doomsday outlook on things. I think in 20yrs we will have become like Afghanistan with regards to our infrastructure. I think there'll be days when we will only have 4 or 5 hours electricity - or none at all. I think we'll have limited telephone service. Etc. And I think a full out depression is imminent. How could it not be?"

I really believe this, but I don't know why. Not yet.

From here my interest turned to this thread and the Federal Reserve. Some poignant things were said by people I believe know what they're talking about:
Bristoe - "The Federal Reserve has been playing games with the nation's monetary system and crashed it,...badly,...extremely badly. Even if massive numbers of people weren't losing their jobs, they wouldn't be able to work enough to fix it. This crash is of a scale that's never been seen before. Nobody has any idea how to deal with it or even if there *is* a way to deal with it."

Emphasis on "...Even if massive numbers of people weren't losing their jobs, they wouldn't be able to work enough to fix it."

mike762 - "...The further our economy descends, the easier it will be for the statists to gain permanent control, much as they did after the New Deal. Unfortunately, I think it will collapse along the way, long before it gets better. ..."

And I said, "...I don't know too much about the Fed's purpose - what it can/can't do. But it doesn't take a rocket scientist to see that ... what's a good analogy? all this money flowing so freely around is kinda like a lava tube ripe to collapse on itself. Or a lava tube that's outgrown the volcano, yet still needs to be fed. Something along those lines. ... Where's all this 'free flowing money' coming from? It's scary...."

I finally invested all my thoughts in a thread called What's Wrong with the Economy....

9:38 AM email to Claims Adjuster (Thu, Jan 29, 2009)

Post 19 My Truckalogue

Subject: How do things stand on the pay issue?

Little Nursette called me after our visit with Dr. Feelbetternow yesterday to tell me AMX could not accommodate the restriction of "no tie downs"; therefore they can't let me come back to work now.

Also, I am to go to physical therapy 2 to 3 times per week for 4 weeks. It apparently can't be done in my truck as Dr. Wolfe's nurse ordered. Since I drive over-the-road for AMX, and am paid mileage, it isn't cost effective (or even possible, probably) for me or AMX to have me back in Bessemer this often.

I am restricted to lifting no more than 15 pounds; carrying no more than 20 pounds; only occasionally reaching overhead; and limited work overhead. Dr. Feelbetternow didn't specifically state this, but the force required to open the jaws of a 5th wheel is significantly more than the force required to lift 15 pounds. Opening the jaws of a 5th wheel can only be done with my right arm.

I need to know three things:

1.) Will I be paid for any part of the period between January 13, 2009 and January 29, 2009 since Dr. Wolfe only restricted me to "no repetitive use of right shoulder for two weeks then resume duty", i.e., Dr. Wolfe's course of treatment would have been insufficient?

2.) When does my period of disability begin again, now that I am once again unable to work?

3.) How do I go about being reimbursed $50.78 out-of-pocket expenses for pain medication purchased January 16, 2009?


As always, I'd prefer an email response; but either way, please contact me at your earliest convenience.

Thanks much,

3:54 PM email to Benefits Girl (Tue, Jan 27, 2009)

Post 17 My Truckalogue

Me again Benefits Girl

Y'all probably already know, but I have an appointment with the St. Vincent's Orthopedist in the morning at 10AM. The nurse hired by W/C carrier will be there with me.

You reckon there's a serious lack of trust in all this Workers Comp stuff? (Ha!)

Anyway, I wanted y'all to be aware that I've started a blog about my experience with Worker's Comp.

It's at http://workerscompordeal.blogspot.com/

I just told my nurse about it, and now y'all know. I wanted to keep all this stuff documented as carefully as possible, and I hope the blog accomplishes that. It's a work in progress, but I think it'll be helpful if I have to hire an attorney or something.

Your name is "Benefits Girl", _____ is "Whatagreatguy", and my regular doctor's is "Dr. Feelgood".

Please let me know if y'all have any problems with it.

Thanks much,

2:24 PM email to Benefits Girl (1/23/09)

Post 14 My Truckalogue

Fri, Jan 23, 2009 at 2:24 PM

Hi Benefits Girl,

Just wanted ya'll to know (if you don't already) that I've picked a doctor from the panel, but I don't have and appointment yet. Claims adjuster called this morning to confirm I'd gotten the letter listing the doctors - she'd just gotten her copy of it. I chose one and faxed the form back to Nurse Ratched with Integrated Care Management (the nurse on the case) early this morning. I believe Claims adjuster said somebody would send me a letter with the appointment info enclosed.

It occurred to me that it's no wonder w/c insurance is expensive with so many different companies having a hand in managing just one claim.

Anyway, my shoulder hasn't been hurting as much, but then I haven't used it as much either. When I have to make any kind of unusual movements with my right arm, it seems to awaken a sleeping dog, so to speak. I have varying degrees of pain from just a dull ache to intense stabbing pain. The stabbing pain moves around from my shoulder joint to the middle of my upper arm - like it's right in the middle of my humerus. The first x-rays showed a lump looking thing right where that upper arm pain is the most intense. The first doctor asked if I'd ever broken my arm there - that it could even be something from when I was a kid. But I've never had a broken arm. The MRI picked it up too, but the Orthopedist blew me off so fast - I asked why it hurt so bad in that spot, and he said "That's where it always hurts."

The one I picked from the panel is an Ortho at St. Vincent's in B'ham (Andrews Sports Medicine & Orthopaedic Center) and I'm hopeful he'll take the time to at least try to figure out what's wrong.

Please relay this info to Safety Man - I don't have his email address. And I appreciate y'all's help and understanding.

Thanks much,

11:30 AM email to Claims Adjuster (1/15/19)

Post 17 WCO
Thu, Jan 15, 2009 at 11:30 AM
Subject: The Panel

Claim Adjuster #2,

Just for the record - you called me after my last email, explaining you'd talked to both Benefits Girl and Whatagreatguy. You explained to me that whatever I do medically at this point - from 1/13/08 until the after the review - I will have to fund myself. And I told you I needed to talk to Whatagreatguy or Benifits Girl again. I did call Whatagreatguy back, and he explained that your hands are tied, and I couldn't get paid during the time I'm off.

You see, I didn't know that AMX's word wouldn't override the doctor's. I mean, after all, you work for AMX, right? Now I understand that the last "official" thing, the last piece of paper you have, is a work release from a doctor; and I guess that's all you're allowed to work with. This is cool with me. I was more concerned with losing my job if I refused to go back to work than I was about the money. Thank God I work for a company like AMX. Whatagreatguy's call to me this morning is nothing short of a miracle, because I felt so helpless after you told me to go back to work. I was trying to compose an email to Benefits Girl when he called.

Whatagreatguy told me to keep the receipts for any pain medication I pay for. I'm assuming I'll get reimbursed for that IF the "panel" rules in my favor, right?

And could you please send me a link to something on the internet that explains what a "Panel" is?

And most of all, do you have any idea how long it will take to get the Panel together?

I understand your reason for not wanting to email me, but surely there's nothing you could say here that you wouldn't want in writing. Or again, if you prefer, call on the phone.

I appreciate you time,