advertisement 1
advertisement
SEARCH:
Saturday, February 17th, 2018                                                 SUBSCRIBE TO OUR RSS FEEDrss feed

Fed to Ship Dollars to “Crisis-Wracked” Euro Zone

Published by on May 10, 2010

Fed to Ship Dollars to “Crisis-Wracked” Euro Zone thumbnail

by John W.B. Huie

Exclusive to The American Mercury

TODAY THE FEDERAL RESERVE, America’s private central bank, began to ship billions of dollars to the central bankers of Europe in an attempt to stem the fall in the value of the euro created by Greece’s debt crisis. The total value of the deal could easily top $1 trillion according to experts. Americans — suffering from high unemployment and a tanking economy themselves — are expressing astonishment that 1) the “Fed” has the authority to unilaterally ship dollars to foreign bankers, and 2) that the desires of European-domiciled bankers come first in the Fed’s eyes over the needs of suffering, over-taxed, and unemployed Americans. (ILLUSTRATION: Federal Reserve Chairman Ben Bernanke)

According to Congressman Dennis Kucinich, Congress did not authorize the move. “The Federal Reserve is no more Federal than Federal Express,” he said, which means that, as a consortium of private banks, the Fed can decide on its own and Congress can do essentially nothing about it. Pittsburgh Examiner financial commentator Joe Schoffstall added “Their ultimate goal, just like [that of] any other bank, is to maximize their net profit to the highest levels possible. None of this would be possible without the option of printing endless amounts of money at will….”

The dollars created by the Federal Reserve — which, according to analysts, will dilute and reduce the value of every dollar in Americans’ pockets — will be swapped for rapidly-declining euros, just as the euro’s value is plummeting, and for that very reason. The Fed is acting in concert with other central banks — including the Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank and others — in the so-called “dollar swap” effort.

The European Union and the International Monetary Fund had already pledged a $140 billion “defense package” for the euro, but it wasn’t enough. Estimates of the ultimate cost of the Fed’s dollar giveaway run from $900 billion to more than twice that amount — nearly as much or more in a single day’s pledge, critics say, as in a year of the disastrous Iraq war, which has already devastated the US economy.

The Federal Reserve’s decision today constitutes a reopening of a program started during the 2008 “global financial crisis” under which dollars are shipped overseas directly to foreign central banks. These central banks can then lend the dollars they receive to commercial banks in their home countries that they decide are “in need of dollar funding” to prevent their collapse — and make a huge profit in the bargain, courtesy ultimately of the US taxpayer.

The New York Times published information this morning which appears to buttress supporters of the deal, saying “The swap operations do not carry any exchange rate risks or credit risks… The Fed would not be a party to whatever dollar-denominated loans the European Central Bank may make to European financial institutions…. The Fed actually made money from the previous dollar swap program. The foreign central banks paid the Fed interest equivalent to what they made from lending the dollars.”

Critics say the “making money” and “no risk” claims are irrelevant, though: the dollar’s value is being diluted nevertheless and the fact that the lenders of these newly-created funds will make huge profits should be a source of outrage, not reassurance, they say.

According to American Mercury analyst Gideon Dene, “It is an outrage. But Americans have slept while the Fed has been given the power to control our entire economy. When private banks — and that is what the Federal Reserve is, the central hub of the private banking system — control your currency, you’re naturally going to see them act in their own interests instead of in the interests of American workers and small businesses. The Fed has essentially taken over one of the functions — you might say the most important function — of government: control of the currency. And so you get government by the bankers, of the bankers, and for the bankers.”

“And remember,” Dene added, “European-domiciled banks aren’t necessarily ‘European’ in any real sense. Look at the stockholders and you’ll find out that many of these characters are no more European than George Soros or the Rothschilds. These are internationalist, globalist ‘operators’ with no loyalty to any country. It’s both insane and tragic that we’ve handed over our currency to these private bankers. It’s like hiring Al Capone to run your Neighborhood Watch program.”

I asked Dene what could be done: “The problem actually goes deeper than the Fed,” he said. “The ‘Audit the Fed’ folks, if they get their way, will just uncover the tiny tip of a mountainous problem that’s been buried in ignorance and obfuscation. And that problem is fractional reserve banking. That’s the system that essentially is our financial system today. Most money is not created by the government. Most money is not created by the Fed either — most money is created by commercial banks through the ‘magic’ of the fractional reserve system, acting on demand deposits — like checking accounts. The Fed supervises and hopes things don’t get out of hand — and steps in when they do.

“The fractional reserve principle is based on the idea that most depositors won’t ask for their money all at once. So you can lend out 90 per cent. of your depositors’ funds without deducting the amount you lend from their accounts — in essence creating money.

“That’s a system that guarantees panics, failures and bubbles. And until people understand that, there will be no push for meaningful reform. Not one citizen in ten thousand has even heard of fractional reserve banking. And not one journalist in a thousand understands it. And those who are getting rich off of it are going to do everything they can to maintain that general ignorance. I do hope that what the Fed did today has an educational effect.”

Related Articles:

Readers' Comments

  1. Fed to Ship Dollars to “Crisis-Wracked” Euro Zone | EUTimes.net on May 12th, 2010 10:02 am

    […] Source VN:F [1.9.0_1079]please wait…Rating: 0.0/5 (0 votes cast) […]





  • Her killer was made into a hero
  • Literature, US News »

    Homeless Jack on “Grabbing Some Pussy”

    November 7, 2016

    Homeless Jack on “Grabbing Some Pussy” thumbnail

    We discovered this piece scrawled on some foolscap left on our doorstep, an all-lower-case Kerouac-style stream of consciousness rap, and offer it as we found it. by H. Millard trump is an american original and a throwback to the days when americans were bursting with confidence and energy and the sheer joy of freedom and […]

    Africa, History »

    ‘The Choice of Achilles’: John Alan Coey Against the New World Order

    January 3, 2013

    ‘The Choice of Achilles’: John Alan Coey Against the New World Order thumbnail

    by T.R. Bennington AS EVER, BUT ESPECIALLY in our present state of civilizational malaise, there is a need for figures with the power to inspire — men who in less confused and cynical times would have been unabashedly described as heroic. One such figure is Corporal John Alan Coey, a young soldier who has perhaps […]

    Science »

    Quarter of Americans Convinced Sun Revolves Around Earth

    March 2, 2015

    Quarter of Americans Convinced Sun Revolves Around Earth thumbnail

    “DOES the Earth go around the Sun, or does the Sun go around the Earth?” If you answered the latter, you’re among a quarter of Americans who also got it wrong, according to a new report by the National Science Foundation. A survey of 2,200 people that was released Friday revealed some alarming truths about […]

  • Reader’s Comments

  • Categories

  • Archives

  • Pages

  • Login / Register / RSS

  • Vintage Mercury »

    Jailbirds

    June 7, 2017

    Jailbirds thumbnail

    by Jim Tully; from The American Mercury, September, 1928; transcribed by Kevin I. Slaughter THE jail room was thirty-five feet long, twenty-five feet wide, and seven feet high. In this large cage were fifty prisoners. Some had been sentenced and were serving jail terms; others awaited trial, or removal to the penitentiary. The floor was of […]

    Opinion »

    The Old Right and the Antichrist

    June 7, 2017

    The Old Right and the Antichrist thumbnail

    by Richard Spencer (pictured) The following address was given to the H.L. Mencken Club’s Annual Meeting; November 21-23, 2008. BEFORE William F. Buckley settled on writing God and Man at Yale in 1951, the 25 year-old had something quite different in mind as a debut volume. Buckley planned, and may have begun drafting, a book caustically […]

    Literature »

    The Fame of a Dead Man’s Deeds Audio Book: Racism and Hate

    February 8, 2018

    <em>The Fame of a Dead Man’s Deeds</em> Audio Book: Racism and Hate thumbnail

    by Bradford L. Huie for The American Mercury VANESSA Neubauer’s reading of The Fame of a Dead Man’s Deeds continues this week with Dr. William Pierce’s reactions to the claim that his work consists of just “racism and hate.” Dr. Pierce believes that it is wrong to pathologize a legitimate emotion that is appropriate in some […]

  • Names and Topics



  • FEATURED ARTICLES

    Literature »

    The Fame of a Dead Man’s Deeds Audio Book: Our Cause

    October 15, 2017

    <em>The Fame of a Dead Man’s Deeds</em> Audio Book: Our Cause thumbnail

    by Bradford L. Huie for The American Mercury THIS WEEK in our audio biography of William Pierce (pictured), read by Miss Vanessa Neubauer, we present author Robert S. Griffin’s exploration of Dr. Pierce’s spiritual ideals, as expressed in his seminal speech Our Cause. Click here for all the chapters of this book that we’ve published so […]

    Frank Audio Books, History »

    New Audio Book: The American Mercury on Leo Frank – Dorsey’s Closing Arguments, part 1

    October 13, 2017

    New Audio Book: The American Mercury on Leo Frank – Dorsey’s Closing Arguments, part 1 thumbnail

    TODAY WE present the closing arguments of Solicitor Hugh Dorsey (pictured), which were the very last arguments heard by the jury, in the 1913 murder trial of Leo Max Frank for the murder of Mary Phagan. These powerful, successful, and historic arguments span some six hours, and they will be presented here over the next […]

    Literature »

    The Fame of a Dead Man’s Deeds Audio Book: Timothy McVeigh

    October 8, 2017

    <em>The Fame of a Dead Man’s Deeds</em> Audio Book: Timothy McVeigh thumbnail

    by Bradford L. Huie for The American Mercury AGAIN AND AGAIN the claim is made that Dr. William Pierce’s novel The Turner Diaries was the “inspiration” for Timothy McVeigh’s 1995 attack on the Federal Building in Oklahoma City. But was that true? Professor Robert S. Griffin asks Dr. Pierce tough questions on his, his novel’s, and […]

    Frank Audio Books, History »

    New Audio Book: The American Mercury on Leo Frank – Rosser’s Closing Arguments, part 2

    October 6, 2017

    New Audio Book: The American Mercury on Leo Frank – Rosser’s Closing Arguments, part 2 thumbnail

    THIS WEEK in our audio book series we present part 2, the final part, of the powerful, skillful closing arguments of Luther Z. Rosser for the defense of Leo Frank (pictured) in his trial for the murder of Mary Phagan, read by Vanessa Neubauer. Rosser, possibly the most feared lawyer in Atlanta in his day, […]

    Literature »

    The Fame of a Dead Man’s Deeds Audio Book: Pierce on The Turner Diaries

    October 1, 2017

    <em>The Fame of a Dead Man’s Deeds</em> Audio Book: Pierce on The Turner Diaries thumbnail

    by Bradford L. Huie for The American Mercury TODAY WE ENTER the mind of the author of the most controversial novel ever written — The Turner Diaries. Professor Robert S. Griffin interviews and probes fearlessly into the thinking of Dr. William Pierce, the subject his unique biography, The Fame of a Dead Man’s Deeds. What was William […]

    Frank Audio Books, History »

    New Audio Book: The American Mercury on Leo Frank – Rosser’s Closing Arguments, part 1

    September 27, 2017

    New Audio Book: The American Mercury on Leo Frank – Rosser’s Closing Arguments, part 1 thumbnail

    THIS WEEK in our audio book series we present part 1 of the powerful, skillful closing arguments of Luther Z. Rosser (pictured) for the defense of Leo Frank in his trial for the murder of Mary Phagan, read by Vanessa Neubauer. Rosser was respected — and feared — as one of the best attorneys of […]

    Literature »

    The Fame of a Dead Man’s Deeds Audio Book: The Turner Diaries

    September 24, 2017

    <em>The Fame of a Dead Man’s Deeds</em> Audio Book: The Turner Diaries thumbnail

    by Bradford L. Huie for The American Mercury WHAT IS PROBABLY the most controversial novel ever written — The Turner Diaries — is the subject of this week’s chapter of our new audio book, The Fame of a Dead Man’s Deeds. (ILLUS.: The cover and autographed title page of a first edition copy of The Turner Diaries, […]

    Frank Audio Books, History »

    New Audio Book: The American Mercury on Leo Frank – Arnold’s Closing Arguments, part 2

    September 20, 2017

    New Audio Book: The American Mercury on Leo Frank – Arnold’s Closing Arguments, part 2 thumbnail

    REUBEN ARNOLD’S closing arguments (part 2) for the defense of Leo Frank — on the charge of murdering his sweatshop employee Mary Phagan — are our presentation this week in our new audio book series, read by Vanessa Neubauer. This series encompasses the American Mercury’s coverage of the 1913 trial and conviction of Jewish sex killer […]

    Literature »

    The Fame of a Dead Man’s Deeds Audio Book: Revilo P. Oliver

    September 17, 2017

    <em>The Fame of a Dead Man’s Deeds</em> Audio Book: Revilo P. Oliver thumbnail

    by Bradford L. Huie for The American Mercury RESPECTED PROFESSOR of the classics — co-founder of the John Birch Society — radical racial-nationalist — witness before the Warren Commission — and profound influence on William Luther Pierce: All of these things describe Revilo Pendleton Oliver, who is the subject of this week’s chapter of our new […]

    Frank Audio Books, History »

    New Audio Book: The American Mercury on Leo Frank – Arnold’s Closing Arguments, part 1

    September 15, 2017

    New Audio Book: The American Mercury on Leo Frank – Arnold’s Closing Arguments, part 1 thumbnail

    REUBEN ARNOLD’S closing arguments (part 1) for the defense of Leo Frank — on the charge of murdering his sweatshop employee Mary Phagan — are our presentation this week in our new audio book series, read by Vanessa Neubauer. (ILLUS.: Luther Rosser and Reuben Arnold headed Frank’s defense team.) This series encompasses the American Mercury’s coverage of […]