Monday, June 22, 2009

Batter Up!

On the one hand it is amusing. On the other hand it is fitfully frustrating. In fact it is disgusting. The blatant attack on the Precious Metals today was as bold as they come. The bid for the Dollar today did not warrant such a reaction as was witnessed today. Why just last week, at similar Dollar levels, Gold traded in the 950's, and silver in the 15's. Clearly the Fed cannot tolerate a strong Gold market when they are "in session" planning the next stage of the Greater Depression.

At 5:20AM est this morning, just prior to the Asian Markets closing and rolling into the London Market, Gold was attacked for a $10 loss in the space of just ten minutes. It was then shaken for another $5 as the NY CRIMEX opened for its hoodlum activities.

As noted two weeks ago, if Gold lost 942 it would be open to a test of support at 918. Today Gold bottomed at 918. Action on the hourly chart suggests buyers lay waiting for Gold there. Whether or not legitimate buyers lay there or merely shorts covering their blossoming trades remains to be seen, but there was definite support at 918 today.

Outside of the World Bank's "announcement" that World GDP growth would be less than they had previously thought [shocking isn't it?] there was no significant fundamental reason to rush out and buy the US Dollar this morning. [Not that there is ever any reason to buy the Dollar these days] Of course we have seen this reaction before as Global Equity Markets crashed...the Dollar catches a bid. But I still don't believe it was the Dollar bid that brought Gold down this morning. As I noted above, Gold has been much higher with similar Dollar "values" just last week.

Oil brought the Precious Metals Markets down today imo. Oil is too foolishly thought of as a currency these days because it moves opposite the Dollar. It does so because it is a commodity whose sale is most often settled in US Dollars. Oil got beat with an ugly stick today. Of course then ALL commodities, yes even Gold and Silver, had to be taken to the woodshed as well.

I'll point the finger [or should I say "give the finger"] at Goldman Sachs. You can be certain they were adding to their out of control commodities derivatives this morning at the behest of their imperial masters at the Fed and Treasury. You can probably make book as well that profits from the covering of the Gold shorts over at Goldman and JPMorgan this morning will be used to buy Treasuries this week in the hopes of keeping the precious bid to cover ratios and yields in line to give the appearance of an unending demand for the USA's burgeoning pile of debt. What a pathetic country we live in. Free markets my ass.

Once again, those looking to purchase Precious Metals at a price should welcome these fire sales put on by the knuckleheads rigging these markets. Line up yer buy orders folks. The Dollar's back is against the wall of a falling 50 day moving average, The Fed's back is against the wall of an increasingly investigative Congress, and the US Treasury is...well, the US Treasury is bankrupt.

The Money Matrix - Who Owns the FED
by Jake Towne, the Champion of the Constitution
So, who owns the Federal Reserve? Well, it certainly is not the US government, as many would suppose. In fact, I have found that quite a few - including myself last year - who are roughly aware of how the FED works but believe that the owners of the FED is a secret. Well, it is not.

"As of March 2004, of the nation's approximately 7,700 commercial banks approximately 2,900 were members of the Federal Reserve Systema - approximately 2,000 national banks and 900 state banks. Member banks must subscribe to stock in their regional Federal Reserve Bank in an amount equal to 6 percent of their capital and surplus, half of which must be paid in while the other half is subject to call by the Board of Governors. The holding of this stock, however, does not carry with it the control and financial interest conveyed to holders of common stock in for-profit organizations. It is merely a legal obligation of Federal Reserve membership, and the stock may not be sold or pledged as collateral for loans. Member banks receive a 6 percent dividend annually on their stock, as specified by law, and vote for the Class A and Class B directors of the Reserve Bank. Stock in Federal Reserve Banks is not available for purchase by individuals or entities other than member banks."

So, the owners of the FED are simply other national and state banks. What is rather interesting is that this is no normal company stock! First, they are paid a perpetual annual dividend of 6% per the Federal Reserve Act of 1913 which is not a "law" in the technical sense that the FED implies. Second, apparently this "stock" is part of each member bank's balance sheet as only have is "paid in" to the FED and the "other half is subject to call" by the FED.

Why do the owners of the FED not matter?

Well, as stated, the member banks have no ownership or decision-making rights as the shareholders of a corporation would. Their sole privilege is to influence the selection of several of the Reserve Bank division's directors who in turn may have a chance to influence a rotating chair on the FOMC (Federal Open Market Committee) or appoint the Federal Advisory Council. As seen in the below diagram, this is not much power at all.

So, why does who owns the FED matter?

Well, no American citizen, nor the American government, nor any other non-bank entity or corporation for that matter, can purchase stock. The FED is truly a "bank of banks" ruled by a small oligarchy of prominent central bankers. Ben Bernanke is just the current ringleader paraded out to the public. Given the vast power of the FED, I can claim with confidence that the Federal Reserve is a banking cartel. It has a monopoly over the money supply and credit of the United States. It is at best an unconstitutional quasi-governmental entity setup by the Federal Reserve Act of 1913.

For the best estimate on the FED ownership please see below, note that the top 4 banks Bank of America, JP Morgan Chase, Citigroup, and Wells Fargo-Wachovia, control roughly 54% of the stock of the Federal Reserve Bank, and the top 10 banks, including Government Sachs, HSBC, and the Bank of New York, would control roughly 70% of the stock.

...stock ownership in the FED does not confer control over the FED, but it is just more information pointing at the entire immoral cartel. There is complete documentation on the FED's website that it has acted in secret in the past to suppress the price of gold, and plenty of evidence that the same is going on today. Even Ben Bernanke admitted the FED caused the Great Depression! Since 1990, the FED has been orchestrating the outright ROBBERY of the savings of the American people by STEALING from the dollar's purchasing power.

The FED cartel is the arch-enemy not just of the free market, but of every living adult and child on the planet. It must be destroyed and the money powers returned to We the People.

Not nationalized. Not just audited. Not just more regulated. Destroyed. This topic must be debated in not just the halls of Congress but across the land...

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