Fox Fired Glenn Beck After He Exposed the Federal Reserve

Uploaded on Apr 8, 2011

I never liked Glenn Beck much, but it is quite a coincidence that he comes out with the real truth about the private Federal Reserve, and then loses his show on Fox News. Like Ron Paul always says, the Fed is the true facilitator of big government. They could never tax enough, or borrow enough to pay for the wars and corporate welfare without the printing press and world reserve currency status. Do your own research; read G. Edward Griffin’s classic “The Creature from Jekyll Island.” The creation of the Fed WAS A CONSPIRACY. No theorizing needed. Our forefathers fought since the founding to deny the bankers a monopoly over the control of currency and credit. We have fallen under the control of the banking establishment, and they have tied their fraudulent debt to the fiscal wellbeing of America.

If you consider yourself a proponent of limited, Constitutional government, you have an obligation to fight the Federal Reserve. The neocon talkers like Limbaugh, Hannity, Levin, Ingraham, and even Savage will not explain the truth. While popular outrage is focused at the Fed, the neocons are trying RIGHT NOW to shift the focus to Chinese policy and their alleged (get this) currency manipulation! Ever heard of QE2?

Aired on March 25, 2011 – Fox News Channel’s “Glenn Beck”

Griffin refers to the “mandrake mechanism” but Beck never allows him to finish.  Here’s what he’s talking about, excerpted from his book:

… It is difficult for Americans to come to grips with the fact that their total money supply is backed by nothing but debt, and it is even more mind boggling to visualize that, if everyone paid back all that was borrowed, there would be no money left in existence. That’s right, there would not be one penny in circulation — all coins and all paper currency would be returned to bank vaults — and there would be not one dollar in any one’s checking account. In short, all money would disappear.

Marriner Eccles was the Governor of the Federal Reserve System in 1941. On September 30 of that year, Eccles was asked to give testimony before the House Committee on Banking and Currency. The purpose of the hearing was to obtain information regarding the role of the Federal Reserve in creating conditions that led to the depression of the 1930s. Congressman Wright Patman, who was Chairman of that committee, asked how the Fed got the money to purchase two billion dollars worth of government bonds in 1933. This is the exchange that followed.

ECCLES: We created it.
PATMAN: Out of what?
ECCLES: Out of the right to issue credit money.
PATMAN: And there is nothing behind it, is there, except our government’s credit?
ECCLES: That is what our money system is. If there were no debts in our money system, there wouldn’t be any money.

It must be realized that, while money may represent an asset to selected individuals, when it is considered as an aggregate of the total money supply, it is not an asset at all. A man who borrows $1,000 may think that he has increased his financial position by that amount but he has not. His $1,000 cash asset is offset by his $1,000 loan liability, and his net position is zero. Bank accounts are exactly the same on a larger scale. Add up all the bank accounts in the nation, and it would be easy to assume that all that money represents a gigantic pool of assets which support the economy. Yet, every bit of this money is owed by someone. Some will owe nothing. Others will owe many times what they possess. All added together, the national balance is zero. What we think is money is but a grand illusion. The reality is debt.

Robert Hemphill was the Credit Manager of the Federal Reserve Bank in Atlanta. In the foreword to a book by Irving Fisher, entitled 100% Money, Hemphill said this:

If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless situation is almost incredible — but there it is.6 …

the mandrake mechanism: an overview

The entire function of this machine is to convert debt into money. It’s just that simple. First, the Fed takes all the government bonds which the public does not buy and writes a check to Congress in exchange for them. (It acquires other debt obligations as well, but government bonds comprise most of its inventory.) There is no money to back up this check. These fiat dollars are created on the spot for that purpose. By calling those bonds “reserves,” the Fed then uses them as the base for creating 9 additional dollars for every dollar created for the bonds themselves. The money created for the bonds is spent by the government, whereas the money created on top of those bonds is the source of all the bank loans made to the nation’s businesses and individuals. The result of this process is the same as creating money on a printing press, but the illusion is based on an accounting trick rather than a printing trick. The bottom line is that Congress and the banking cartel have entered into a partnership in which the cartel has the privilege of collecting interest on money which it creates out of nothing, a perpetual override on every American dollar that exists in the world. Congress, on the other hand, has access to unlimited funding without having to tell the voters their taxes are being raised through the process of inflation. If you understand this paragraph, you understand the Federal Reserve System….

I would further elaborate that under the current system, money is nothing but a digestive enzyme which banks use to absorb real wealth from the economy.   Banks create “virtual” money (principal) when they make loans.   That principal is destroyed when the loan is paid off, but the interest payments are “real” money which the bank gets to keep.  Think of how an amoeba eats: it surrounds its prey and invests or “loans” digestive enzymes into it which dissolve the prey.   Then the enzymes (principal) and the dissolved goodies (interest) are absorbed by the amoeba.  The process repeats.  The net investment of the amoeba is zero unless the prey defaults, in which case the collateral is seized.  But normally the return on its “investment” is the interest paid.

In theory the bank’s maximum loan portfolio is limited by the prevailing “reserve ratio”, so that a naive interpretation is that the bank can only create and loan out up to (1-reserve ratio) times its  capital reserve.  But the trick is that savings deposits are counted as part of its capital reserves, and guess where those deposits come from: businesses and employees of businesses which sell merchandise and services (cars, houses, construction etc) to borrowers from banks.  The businesses themselves are usually created from bank loans.   Remember, all money is created as debt to banks.  If there was only one bank in town and all the bank’s loans wind up back at the bank as savings deposits, the sum of the total amount of money created by a given initial capital reserve  is a geometric series with r=(1-the reserve ratio), so that the ratio of money produced to capital reserve is 1/(the reserve ratio).   Historically the reserve ratio has been 10%, which means the total amount of money produced could be up to 10 TIMES the initial amount of money in reserve.  This is how banks create money out of nothing.   Likewise, the effective annual rate of return on the bank’s actual investment (initial capital reserve) is up to 10 times the interest it charges on its loans, i.e. 100% if it loans at 10% interest.    Not bad for doing nothing.

Needless to say this amount of leverage and recursive debt dependency makes the system extremely unstable in the event of multiple defaults.   This is why the FDIC is needed,  but in the event of systemic failure the fed can always bestow more digestive enzymes out of its capital reserves (which in the fed’s case happen to be zero).

This looks a lot like medieval serfdom.   Apparently the founders agreed:

This instability would vanish if money was an asset instead of a debt-pyramid scheme.  But it does give the fed a great deal of leeway to induce depressions on demand.   The effect of even minor restrictions on the money supply is amplified by the instability of the system.    Furthermore, the present system perpetuates the continual buildup of debt to pay the interest on existing debt.   In this context, the whole notion of “debt” is called into question.   Does the american taxpayer really owe $21T in taxes to anyone?

In the case of the great depression, the fed withdrew 30% of the cash from circulation. In the 2008 crash, with the internet looking over their shoulder, the cartel was more subtle: the BIS modified banking accounting rules about valuing capital reserves (mark to market) at the height of the fed-inflated housing megafraud bubble after the bush admin had spent years actively blocking investigations into mortgage fraud in all 50 states to allow the bubble to reach maximum capacity.   Between bush’s malfeasance and mortgage reforms passed in the 90’s in the name of helping the poor get homes predatory lenders were shielded from both legal and financial liability for creating junk loans.   The system was designed to encourage massive fraud and the “fed” was a pivotal player in this:

When the planned and executed downturns hit, the fed’s cash-engorged shareholders can  slurp up real property for pennies on the dollar.  No wonder there’s a pyramid on the back of every dollar bill.

Your Bank Deposits are Unsecured Loans to the Bank and Subject to Confiscation

Censored: Ben Franklin on the Real Cause of the American Revolution

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