- World history is spotted with stories of political conquests:
Attila the Hun, Genghis Khan, the Pharaohs, Alexander the Great, and Roman
Caesars, each who seized physical control of a country, its economy and
assets. History holds no story of a take over based solely on a country's
assets, until now. The modern day Attila's, Genghis Khan's, Pharaoh's,
and Caesar's are the men who own and control the Central Banks of the world.
America's Central Bank is the Federal Reserve, which controls our monetary
system, is not part of our governmental system, and, although its name
would imply, it has no reserves.
- The 13th month of America's credit crisis may hold its
own in history as a country whose economic power and bulk of wealth overnight
become the assets of the Federal Reserve. This may well be the finest
- For more than a week the news media has been a buzz,
clamoring for the need to change our regulatory system. The passage, by
Congress, of "The Treasury Blueprint for a Modernized Financial Regulatory
System," will hand over to the Federal Reserve the last vestiges of
our financial sovereignty: savings and loans; state chartered banks; thrifts
and credit unions; the entire mortgage and insurance systems, as well
as oversight of the Payment and Settlement System of Wall Street. In addition,
the Feds would gain oversee rights to all of America's financial markets.
(To read "The Treasury Blueprint for a Modernized Financial Regulatory
Structure", go to http://www.ustreas.gov).
- Most Americans can't fathom what is really happening.
How could something like this happen in America? How did people who lived
through the 1929 Crash and Great Depression manage when everything they
knew changed overnight? The answer is: they were not in debt the way Americans
are today. Multi-generations lived together, all working to pay off the
mortgage. Additionally, a great many families lived on farms where they
could raise their own food. Today, we are dependent on large banks for
our mortgage and debt and big grocery stores for our food rather than our
- We know from various historians that when the stock market
crashed in 1929, the Federal Reserve was at fault because they did not
put liquidity into the system but took it out, thus exacerbating the Crash
and causing the Great Depression. In response, on the day he was sworn
in, newly elected President Franklin D. Roosevelt took control of all private
ownership of gold when he closed the banks down. He also instituted a
number of socialistic measures to put Americans to work with infrastructure
projects. Today, the Federal Reserve is putting billions of newly printed
dollars into the American and global financial system which will increase
the interest on the debt that Americans owe to the Federal Reserve. We
have no idea, at this time, what that will do to our purchasing power,
but you can be sure that it will drop. In fact, the value of the dollar
could drop so low that we will have to merge our currency with Canada,
Mexico, and the other countries of this hemisphere, or even forego the
proposed Amero for the Special Drawing Right-SDR, a basket of five currencies:
the dollar, the Swiss Franc, the British pound sterling, the euro and
the yen. The SDR is the currency used by the IMF/World Bank and adopted
several years ago by the Bank for International Settlements when they changed
from the gold franc to the SDR.
- I am grateful to geopolitical expert Terry Hayfield,
who introduced me to the writings of Harvard economist Joseph Schumpeter.
Schumpeter came up with the idea of creative destruction as a way of saving
capitalism, or should we say, transferring the value of capitalism from
many to a few powerful insiders? Since capitalism is an ism, like Marxism,
socialism, or fascism, you need to prop it up by destroying in order to
"save". Our economy has been propped up by debt: mortgages,
credit cards, home equity loans, lines of credit, auto loans, tuition loans,
medical loans, Treasury bills, notes and bonds, Fannie Mae and Freddie
Mac, commercial loans, business loans, etc. We must also keep in mind
that for every loan, interest or a usury, is being collected. We are a
- Creative Destruction is the key component, as seen in
most of this past weeks headlines. The Financial Times screamed: "CREDIT
PANIC HITS HISTORIC LEVELS"; "FAR REACHING CHANGES LOOM IN US";
"PUSH FOR CRISIS BREAKTHROUGH"; and "GLOBAL MARKETS ROAR
IN APPROVAL, US Rescue Plan Sparks Record Rises for Equities".
The Washington Post reiterated: "STOCKS PLUMMET AS LENDING FREEZES
UP, Lawmakers Left on the Sidelines as Fed, Treasury Take Swift Action";
"US PROPOSES $500B BAILOUT, Bush's Shifting Ideology," and "PRESIDENT
SEEKS HISTORICALLY BROAD MARKET INTERVENTION". This mornings,(Sunday)
The Washington Post headlines read: "WASHINGTON READIES SEA CHANGE
FOR WALL STREET, Cultural and Structural Shifts Rise Out of Risk-Taking
Titans' Hard Fall" and "RESCUE PLAN GROWS TO $700B, Similar Measurers
- If you listened to the commentators on CNBC business
news, what you heard from time to time from the mouth of Erin Burnett is
"creative destruction" and "Schumperterism".
The following is a dialogue from September 15 with Larry Cudlow, Mark Haines
and Erin Burnett:
- Mark Haines: "Is this another example of creative
destruction for the failure of government?"
- Larry Cudlow: "Lots of mistakes but the role of
creative destruction and Schumperter play a role here."
- Erin: "We have a philosophy of a veil of uncertainty
- As I have written before, our entire economy and all
of our assets are in the process of being transferred to the Federal Reserve,
who now appears to be running the United States of America. We have had
a bloodless coup by a very, very powerful group of ruthless men who not
only control the United States of America but in unity, control the world
in conjunction with all of the other central banks. Furthermore, they
have united to intervene in global markets. Their apex: the Bank for International
Settlements, (BIS), located in Basle, Switzerland. During this past week,
as they acted in concert with liquidity to the tune of $600B, opening up
their discount windows for 24 hour loans to any banking institution in
trouble, it may be fair to say a world or global central bank was birthed.
- For America, it began in 1913 when those who opposed
a central bank went home for Christmas. In 1913, on December 24th, at 11:45
p.m., after their colleagues left to go home for the holidays, greedy politicians
pushing for a central bank garnered enough votes to pass it. What is a
central bank? The idea began originally in Sweden who decided that they
would set up a private corporation to lend monies to the government at
interest. The government would pay interest on the principal borrowed
forever. Interest in perpetuity! Can you imagine interest being paid
to you forever? This is usury par excellent and is known as bondage. This
brilliant idea was adopted by Holland which transported it to England,
and little by little around the world. While America had its own central
bank which was formed at the time of our Independence, it was closed by
Andrew Jackson and never renewed until 1913.
- Ever since the Federal Reserve Act was passed, Congress
voted over 195 times to give the Federal Reserve more power. In essence,
Congress has voted away all their authority and power to protect us. If
they don't vote for the emergency package, i.e. Resolution Trust and Blueprint,
the market will crash. If they do vote for it, the American people are
reduced to serfs and slaves in the New World Order which will be run by
the real financial center of the world, the City of London. Either way
they will be blamed. Basically they should be tried and hanged for treason
along with every president and Congress before them down to 1913.
- With most Americans up to their eyeballs in debt, it
is as if we have been led to the slaughter. First the $7T crash of the
NASDAQ in 1999 where the value of our stocks and bonds dropped which was
followed by 9/11 where the government told Americans to support our economy
by "going out to spend". The Fed accommodated Bush by dropping
interest rates to 45 year lows. Naive and happy Americans bit the apple
and went out and purchased the American Dream. The level of debt rose
astronomically. Then there were home equity lines of credit. Wow! All
this for us. No-we have been thrown into the lion's den-be it Daniel's
Lion's Den or the Coliseum. Now, using the credit crisis which, in my
opinion was created, these 21st Century Attila the Huns, aka the Federal
Reserve, is coming in for the kill.
- These carpet-baggers are going to clean up and become
the new royalty in America, owning homes across the land that they were
able to purchase for two cents on the dollar. The first time they did
this was in 1980 with the Savings and Loan Crisis when the same kind, but
different types of events were orchestrated to bring down the institutions
that held commercial real estate. Do you remember that Congress authorized
the Resolution Trust Corporation which was financed by our tax dollars
to get rid of all the "worthless" commercial real estate? The
problem is that we never had any accounting and no public disclosure about
who bought what assets as it was all very clandestine. Now 28 years later,
we have the same situation, except it is our mortgages. What happened between
then and now?
- The price of homes rose substantially. In 1970 before
Nixon took the dollar off the gold standard, you could buy in the Washington,
D. C. area, a three bedroom all brick house on 12 acre for $32,000. today
that same home sells for a reduced price of $450,000 - $500,000, depending
on where it is located. Our currency has been devalued substantially.
That is the real reason for inflated prices along with the situation that
was created after the 9/11 tragedy. The Federal Reserve lured Americans
into their dream house which is now their worst nightmare by dropping interest
rates to 45 year lows and creating the mortgage bubble. In the Washington,
D. C. area, you could not find a house to buy because of all the activity.
Prices for homes doubled in a very short period of time.
- What can we expect, now that we are in the Lion's Den?
Congress will pass the legislation that the Federal Reserve wants as early
as Monday morning to clam the markets. This legislation will not tell
us everything we want or should know. I can only assume the following
based on fourteen years of research:
- First of all, as a result of the international banker
turned Treasury Secretary and the Federal Reserve chairman's actions to
rescue AIG without Congressional or Presidential approval, those actions
set LEGAL precedence for replacing and changing the Constitution. Never
before in the history of America has a president delegated total Presidential
authority to a non-elected official.
- Secondly, international banker Hank Paulson said Sunday
morning in an interview with Tom Brokow regarding the complexity of the
mortgage market and the securitization process by which mortgages are sold
to investors, "We have over-complexity. Securitization is putting
[mortgages in] tranches and selling them all over the world and that is
the risk." On another Sunday morning show, the host, Chris Wallace
said of Paulson, "[He] will accept some provision to let people to
renegotiate mortgage to stay in home or other huge packages. But there
will be a Main Street renegotiation in this bill because we are scared
of the consequences."
- I believe there will be major changes in the mortgage
market here in America. It will be globalized and changed to the same
kind of feudalistic structure that the Europeans and Commonwealth countries
have. According to my research, America's move to feudalism is in the
process of being finalized. The backbone of the middle class is home ownership
which also includes the property under the building. I believe that the
new system will change America's entire mortgage structure to leasehold,
a system used all over Europe whereby individuals will pay a monthly rent
to the owner of the property that their house sits on. There will be a
total restructuring of property rights in America to fit our new third
world status. All of the rights of property ownership will be changed
forever-gone with the wind. If you don't have a mortgage, you do not
need to worry.
- The need to pass massive legislation by Monday morning
or by Friday afternoon the latest, is indicative of the high stakes of
what will change and the assets that are about to transfer from the American
taxpayer to the Federal Reserve. Congress is being blackmailed. The Treasury
Blueprint lays this all out.
- Thirdly, President Bush tried to recommend a flat tax
in 2003. I wrote extensively on this back then. The truth of the
matter is that if you are going to have a global currency, you are also
going to have a global tax. America is the only country NOT to have a
tax on services or a Value Added Tax-VAT. The repercussions of this takeover
of America is that our cities, states and federal government are broke.
One of the ways to "bail us out" is to create an "Infrastructure
Corps" similar to the various programs Roosevelt created in the 1930s.
To pay for it, we will need a VAT tax. Obama has already alluded to the
"Infrastructure Corps" and he has talked about a capital gains
tax on the sale of property.
- Lastly, from Sunday's talk shows, it appears that New
York City Mayor Richard Bloomberg will head up the newly proposed Resolution
Trust Corporation. We are being given major promises about how fair it
will be. However, if history is any indication, we will receive nothing
and end up holding the bag for the worthless paper that supports the assets.
The bottom line is that you and I have always gotten the crumbs from the
table, if congress does not approve what we are being told is the solution,
we will not even have the crumbs. We are no longer in America but AmeriKa.
It is time to hit our knees and repent for our own sins and ask God to
- Please visit Joan's website: www.womensgroup.org. Call
301/371-0541 to purchase her newsletter, "Global Observations".
The last three issues discuss in detail the structural changes to the
stock market and to our financial system. Joan's two recent videos go
hand in hand: "21st Century Feudalism", a two hour teaching and
"Creative Destruction and the 2008 Credit Crisis-the Final Loss of
American Financial Sovereignty" just recorded two days ago.