By Martin Armstrong, US Economist
People love to blame the Federal Reserve for everything under the sun because it is easier than admitting the real problem: government. The tragic part of this entire monetary experiment is that the Fed, as originally designed in 1913, was brilliant. Each regional branch operated independently, responding to local capital flows instead of political agendas in Washington.
Money moved with the seasons. When crops were planted, capital flowed one way; when the harvest came in, it flowed another. The system was designed to absorb these fluctuations smoothly. It was never supposed to be a political arm of the federal government. In fact, the Fed was owned by the member banks and functioned as a true lender of last resort — buying corporate paper, not government debt. That allowed elastic money that expanded and contracted with economic activity. Corporate paper matures. Government debt does not.
Then came World War I, and with it, the beginning of the end.
Washington needed to borrow staggering amounts of money, so the government told the Fed: stop buying corporate paper and buy our debt instead. From that moment forward, the independence of the branches was eroded. The original structure was discarded in favor of centralized political control. Roosevelt finished the job during the New Deal by usurping the authority of all the regional banks and concentrating everything in Washington under a single chairman. What should have remained a decentralized system responding to capital flows became a one-size-fits-all political tool.
This is why I say the central bank does not need reform, but the government does.
The Fed does not create inflation; the fiscal side of the ledger does. Once Washington discovered that it was less inflationary to borrow than to print outright, the entire system became debt-driven. And because government debt never expires, the money supply never contracts. If the Fed does absolutely nothing, the money supply still expands because the government continually rolls the debt and pays interest on interest. That is why we are in a perpetual cycle of rising obligations.
The Fed has been politically gutted. Every time Washington meddles with the structure, nothing is ever restored afterward. There is no long-term planning, no institutional memory. When I go down to Washington and speak with people, I feel as though I’m explaining basic arithmetic to a grade-school classroom. The political class does not understand markets, capital flows, or historical monetary structure.
The Fed was designed to stabilize regional capital flows. Today, it is blamed for inflation it does not create, forced to manage debt it does not issue, and expected to solve political failures it did not cause. The lender-of-last-resort function only made sense when the Fed bought corporate paper that rolled off the books. Government debt has destroyed that mechanism. Once money becomes tied to sovereign debt, it never contracts, rather it becomes perpetual.
This is why our monetary system is collapsing into the Sovereign Debt Crisis. Not because of the Fed, but because government destroyed the very architecture that once allowed the economy to breathe.
Pat the Black Widow verses the piss ants
12:10 on
h ttps://www.youtube.com/watch?v=EeA_qxly9B0
armageddon duck said – “… Only when a monstrous deadly spider appears in full view, on their doorstep, will they gather on mass encircle and take losses in killing it…”
Yeah well that’s easy for YOU to say, seeing as how Ducks are immune to Spiders.
Don’t be taking the Duck’s advice, folks, NOTHING can stop a Funnel Web Spider, they have 3 cm tungsten-steel fangs that can punch through hob-nailed boots like butter, folks, like BUTTER. And don’t be thinking you can catch it in a big solid glass jar, folks, because it will chew through the glass and go straight for your THROAT.
Your only possible chance is to storm the Spider with about a thousand suicide warriors and hope to Allah that the Spider makes a mistake. Or maybe after it rips off everyone’s arms and stuffs them up their arses, it will lose interest and wander away to terrorise an entire communiy somewhere else.
Good luck with that.
Gazza
Comments on CN.’s site are very informative; by expanding and adding to that shared knowledge someone may benefit.
Readers being free men and women of all ages, do with it what they will.
Outside of this thread 26,000,000 Aussie ants are going about their daily lives.
Only when a monstrous deadly spider appears in full view, on their doorstep, will they gather on mass encircle and take losses in killing it.
That’s where we’re at, the spider is invisible, assets erosion slow, the financial tsunami the other side of the hill.
Bob, Joe and everyone else we all form part of a small community with diverse ideas and constructive comments which we hope are picked up by a wider community and some of the members in parliament that should be our voice.
A country can as we have seen with Greece or Argentina with many others go “bankrupt” as a term usually used in the form of A Sovereign Debt Crisis were they need to be bailed out, regardless of its assets ie. mineral resources etc or National wealth.
It would need to raise liquidity to prevent this from occurring relying on capital injection from optimistic foreign markets to enable a continuation of governance. End of last year we saw it with the US where non essential public sector employees were temporarily stood down for a long 6 weeks while congress debated the less than favourable socialist budget plan on the table before passing the increase to their debt level. An extreme example but shows how certain Government programs can upturn a normally functioning nation. Its the policies that debit a Nation or it’s people.
In Australia’s case being rich in minerals, a good comparison of Governance would be to compare it to a small or mid size publicly listed Mining explorer having the wealth in the mining plot but very little capital to progress it to production. They have to raise capital through share purchase plans the same as Government has to issue Treasury bonds to increase credit to carry on as a going concern. This is all dependent on the confidence in the ones that hold the equity and their willingness in the gamble so to speak only being swayed by the strength and integrity of the board or Parliament of the day.
Another reason why diversity is essential in a nations wealth with the example of Trump reinvigorating an industrial sector as an assurance in diversification of income streams.
Migration another topic, as long as administered and vetted correctly is a necessary condition for a prosperous Nation as we live in a educated leaning society that requires a more than available manual labour force that can only be taken up by immigrants willingness in these tasks.
I to recently wrote to all councillors relative to recent rate rises with strong arguments contrary to their reasoning for the increase with only two replies from 13 which demonstrated the mindset of elected officials in these role we have to contend with.
In the end we need good strong leadership in all facets of our society to be prosperous.
obvious_bob said – “… they are all corporate and operating under ABNs, meaning that they are businesses, and not lawful, unincorporated government, as governments should lawfully be…”
Well Bob, there’s no flies on you. Details freely available to anyone with the motivation to look, of course, but seems most just don’t want to even know, even if it’s shoveled under their noses.
Don’t want to know, because understanding and accepting such inconvenient Truth might place people outside their comfort zones and disrupt their habitual life-long learned routines.
And obvious_bob said – “… how our Australian government corporation, or your state government corporation, for that matter, achieves any valid jurisdiction over you, or any of us?”
With guns, Bob, with literal armies of sadistic merciless utterly remorseless shit-for-brains Granny-bashing child-molesting pig-raping mass-murdering hired mercenary thugs with lots and lots of GUNS.
Each to their own, but it rather seems to me that one substantial elephant in the room is that they get to KILL us but we don’t even have the liberty of defending ourselves let alone responding in kind. One dead Australian blatantly gratuitously murdered in full public view on national broadcast television at Flinders Street Station comes to mind, while the MURDERER strolled away laughing and SCOT FREE with official exoneration from the fake corporate courts, all in full public view on national broadcast television.
This along with 100,000+ MURDERED and put into early graves with forced BIOWEAPON injections. And all the rest, all the other NUMEROUS diabolically sadistic atrocities and outrages systematically and INTENTIONALLY inflicted on the Australian people en masse with no repercussions or consequences to our tormentors and executioners AT ALL.
As I say, each to their own, but Mr. Rope and Mr. Lamp Post are the only ones with a meaningful tangible proportionately reciprocal and JUST solution to bring REAL closure to the downtrodden oppressed impoverished terrorised tortured and murdered Australian people. And the Fat Lady too, of course, without her we’ll never crawl out of this rolling steaming mountain of democidal totalitarian BS.
Commenter bob
I don’t consider myself “most learned” just a proponent of getting to the truth.
Yes people saw your “council is a corporation” angle but I already went up against city hall some years ago and the chief person concerned was later relegated to the scrapheap. An affiliate has also been busted. I was just part of a trend.
The governments need to be “held accountable” by all means possible all the time and we all have do what we can in our own way. Most people are not much use but if they can jawbone and fix tyres or whatever that’s their contribution.
Thing is, Joe, that wee need to collaborate, and not just box on trying to beat each other at having the most learned opinion. We are a disparate bunch trying to oppose a highly organised opposition, so ragging on about this and that will not do. Solutions are the ideal.
And I gave you all one really effective one , and non of you cottoned on to it, so all posters here that did not twig, and use it, are deficient, as a friend I coached on how to do it got paid out, albeit not enough (a tenth, actually, but that was not my fault, but paid by the Council insurer) and you bright sparks did not twig. Really? Dumbasses.
And this is it-how to beat the most important organisation in any community, and you blokes all dudded out.
My master work-and you had your head up your ass when you saw it:
https://cairnsnews.org/2024/01/09/council-watch-groups-bleat-about-unaccountability-but-reject-liability-solution/
You’ve got your hand on it again, Bogan. I have been on to this stuff for a longtime, and have done a few things about it. I’d like to know what magic tricks you have perpetrated on the subject. Silence is only unwitting consent until you find out about it and call it out, ‘coz when you do THEY have to face the music.
Have you blowen the trumpet a THEM?
I doubt it, as you seem to exist on a theoretical level only/
Commenter bob
Your trust was set up via the birth certificate or “naturallisation” and “silence = consent” so they say.
Maybe that’s how all the pedos get off charges too.
Well, Cataclysmic Duck: you need to understand that the US Government Corporation is a corporation-a business, a commercial entity, and that it is not America that goes broke but the corporation, holding unsuspecting Americans to the debt they never incurred.
Have a look at your own governments, and realise that they are all corporate and operating under ABNs, meaning that they are businesses, and not lawful, unincorporated government, as governments should lawfully be.
With your seemingly “diligent” researches, you might enlighten is as to how our Australian government corporation, or your state government corporation, for that matter, achieves any valid jurisdiction over you, or any of us?\As you should know: the CONTRACT is the LAW, and no CONTRACT means: NO JURISDICTION (the word translates as: the LAW SPEAKS).
The U.S. Department of Treasury’s United States Mint produces U.S. coins and controls the movement of bullion, whilst their Bureau of Engraving and Printing Designs produces paper notes for the U.S. Central Bank.
Article I, Section 8, Clause 18, known as the Necessary and Proper Clause, allows Congress to make laws that are necessary for executing its powers listed in the U.S. Constitution; one of which is borrowing money on behalf of the United States.
The Federal Reserve Central Bank, on behalf of Congress borrows money from the Private Banksters converting it into U.S. paper notes printed for the Federal Reserve Central Bank that was created by Congress.
U.S. Elected Servants create the debt and debt ceiling and are accountable to the people: The Central Bank has to report to them twice yearly.
My best source zapped the American and Australian national debt some time back. The government trick is to always present the debit side of the ledger without presenting the credit side-as in: the hundreds of billions of dollars worth of our resources-oil, coal, gas, and everything else, being exported every year, as reported (I can’t post the links because I never get to post any more than one or two).
So, a country can’t go bankrupt, as their resources and industry and exports, and the sweat of people’s brows, are the real capital and wealth of any country.
If a country was broke nothing would move, would it?
India, which is not a poor country but a rich one, but with lots of (deliberately-made-to-be) poor people, Australia is the same: your government is overflowing with loot that actually belongs to you.
They’re just telling you a bunch of porkies-all the time!!!
Not the article I want, but will do, until Anna sends me the actual one:
https://annavonreitz.com/americannationalcredit.pdf
Get with the program, Folks.
I wonder if Socrates is any good at punting on the ponies?
Hey folks,
Just a nuanced observaion here…
Martin Armstrong has the aura of a genuine bona-fide oracle, deriving from 40+ years of economic forecasts with a 100% track record, not one single failure EVER.
BUT Mr. Armstrong is only Human, and just like the rest of us he has his own opinions about the way things SHOULD be built and the way things SHOULD run. And worthy opinions they are, coming from someone of his calibre and background.
Meanwhile, Mr. Armstrong’s FORECASTS have a rock-solid FLAWLESS pedigree from his cycle-analysing AI program Socrates, which he invented, literally built from scratch from the ground up all by himself.
Mr. Armstrong’s views on things – why things seem to be the way they seem to be – are definitely of interest, but FWIW and IMO his FORECASTS, generated from the unerring computations of Socrates, have WAY more tangible relevance to our everyday living and dying.
Just saying.
When you see the rise of inflation you can more than certainly blame Government irrelevant of which party is at the helm. Until all Governments stop the waste in expenditure and return back to basics without all the socialist programs that are propped up with some sort of capital injection from government it will continue on in perpetuity as Martin simplistically explains.
Ideally a Government needs to face bankruptcy where the reliance of the tax payer has been exhausted.
I dispute this article
The Fed was schemed up in a couple of years preceding ww1 and any total remake of the Fed was part of the planning, this type of stuff is not coincidental, the removal of the anti-Fed joos JJ Astor, Benjamin Guggenheim & Isidor Straus in 1912 via the Titanic while pro-Fed Morgan decided not to take the voyage, is a ripping yarn, and either true and contextual or not. I say Woodrow Wilson was rubbish and reportedly his wife was mixed up with “all types” of people.
But worst of all the idea the fiscal (spending) drives the inflation, the spending is only allowed by the liberal money creation. Why should governments be allowed to borrow anything. The Fed should tell them you need to start paying down. Individuals sell their future in the same way but they are limited by 30-year mortgages, they are not allowed to roll over indefinitely. You can see what a bunch of posers they are in the RBA, they’re always babbling rubbish, the one with the most gravitas was Glenn Stevens and all he could say was “we need to save ammunition to shoot at the interest rates”, this analogy is rubbish, he was always so careful not to say anything, reason is because it is all premised on a bunch of lies.
Creating a broker who hands out loans that are just rolled over is a Ponzi. No government can resist a bunch of morons who finance their pork barrelling from the indefinite future. It’s just more fraud and there’s no point centralising it, that just makes it worse, because accountability disappears over the horizon. The system is a joke and guess who pays, the illiterate worker who gets an effective pay cut at whatever the inflation rate is. The only way to “win” is to take out your own mortgage and wait for house prices to “go up”. Mwa-ha-ha-haaa.
HOW THE FEDERAL RESERVE BANK WORKS
ZIONIST BANKERS PRINT MONEY ᴀᴛ ʜᴇᴀᴠɪʟʏ-ᴀʀᴍᴇᴅ & ɢᴜᴀʀᴅᴇᴅ Fᴇᴅᴇʀᴀʟ Rᴇsᴇʀᴠᴇ Bᴀɴᴋ ʙᴜɪʟᴅɪɴɢs ᴛʜʀᴏᴜɢʜᴏᴜᴛ ᴛʜᴇ US. Tʜᴇɴ ᴛʜᴇsᴇ Jᴇᴡɪsʜ ʙᴀɴᴋᴇʀs ᴏғ ᴛʜᴇ Fᴇᴅᴇʀᴀʟ Rᴇsᴇʀᴠᴇ Bᴀɴᴋ *ʟᴏᴀɴ* ᴛʜᴇ ᴍᴏɴᴇʏ ᴛᴏ ᴛʜᴇ US ɢᴏᴠᴇʀɴᴍᴇɴᴛ ᴀᴛ *ɪɴᴛᴇʀᴇsᴛ.*
Sɪɴᴄᴇ ᴛʜᴇ Fᴇᴅᴇʀᴀʟ Rᴇsᴇʀᴠᴇ Bᴀɴᴋ ɪs ᴘʀɪᴠᴀᴛᴇʟʏ ᴏᴡɴᴇᴅ, ᴛʜᴇ Fᴇᴅᴇʀᴀʟ Rᴇsᴇʀᴠᴇ Bᴀɴᴋ ᴏғ Nᴇᴡ Yᴏʀᴋ (ᴀɴᴅ ᴀʟʟ ᴛʜᴇ ᴏᴛʜᴇʀs) ɪs ʟɪsᴛᴇᴅ ɪɴ Dᴜɴ & Bʀᴀᴅsᴛʀᴇᴇᴛ. Bᴜᴛ ᴀᴄᴄᴏʀᴅɪɴɢ ᴛᴏ Aʀᴛɪᴄʟᴇ I, Sᴇᴄᴛɪᴏɴ 8 ᴏғ ᴛʜᴇ U. S. Cᴏɴsᴛɪᴛᴜᴛɪᴏɴ, ᴏɴʟʏ Cᴏɴɢʀᴇss ʜᴀs ᴛʜᴇ ʀɪɢʜᴛ ᴛᴏ ɪssᴜᴇ ᴍᴏɴᴇʏ ᴀɴᴅ ʀᴇɢᴜʟᴀᴛᴇ ɪᴛs ᴠᴀʟᴜᴇ.
Tʜᴜs ɪᴛ ɪs *ɪʟʟᴇɢᴀʟ* ғᴏʀ ᴘʀɪᴠᴀᴛᴇ ɪɴᴛᴇʀᴇsᴛs ᴛᴏ ɪssᴜᴇ US ᴍᴏɴᴇʏ. Bᴜᴛ ʙᴇᴄᴀᴜsᴇ ɪɴғʟᴜᴇɴᴛɪᴀʟ Jᴇᴡs ʟɪᴋᴇ Pᴀᴜʟ Wᴀʀʙᴜʀɢ ᴀɴᴅ Jᴀᴄᴏʙ Sᴄʜɪғғ ʙʀɪʙᴇᴅ ɪɴᴛᴏ ᴇɴᴀᴄᴛᴍᴇɴᴛ ᴛʜᴇ Fᴇᴅᴇʀᴀʟ Rᴇsᴇʀᴠᴇ Aᴄᴛ ᴏғ 1913, ᴛʜᴇ sᴛᴏᴄᴋʜᴏʟᴅᴇʀs ᴏғ ᴛʜᴇ Fᴇᴅᴇʀᴀʟ Rᴇsᴇʀᴠᴇ Bᴀɴᴋ ᴡᴇʀᴇ ᴛᴏ ʙᴇ ᴋᴇᴘᴛ ᴀ sᴇᴄʀᴇᴛ. Oɴʟʏ ʀᴇᴄᴇɴᴛʟʏ ʜᴀᴠᴇ ᴛʜᴇ Jᴇᴡɪsʜ sᴛᴏᴄᴋʜᴏʟᴅᴇʀs ᴏғ ᴛʜᴇ Fᴇᴅᴇʀᴀʟ Rᴇsᴇʀᴠᴇ Bᴀɴᴋ ᴄᴏᴍᴇ ᴛᴏ ʟɪɢʜᴛ.
📎 h ttps://rense.com/general85/feddrec.htm
𝗪𝗵𝗼 𝗖𝗼𝗻𝘁𝗿𝗼𝗹𝘀 𝘁𝗵𝗲 𝗙𝗲𝗱𝗲𝗿𝗮𝗹 𝗥𝗲𝘀𝗲𝗿𝘃𝗲❓
❞𝕀 𝕕𝕠𝕟❜𝕥 𝕔𝕒𝕣𝕖 𝕚𝕗 𝔸𝕞𝕖𝕣𝕚𝕔𝕒𝕟𝕤 𝕥𝕙𝕚𝕟𝕜 𝕨𝕖❜𝕣𝕖 𝕣𝕦𝕟𝕟𝕚𝕟𝕘 𝕥𝕙𝕖 𝕟𝕖𝕨𝕤 𝕞𝕖𝕕𝕚𝕒, ℍ𝕠𝕝𝕝𝕪𝕨𝕠𝕠𝕕, 𝕎𝕒𝕝𝕝 𝕊𝕥𝕣𝕖𝕖𝕥 𝕠𝕣 𝕥𝕙𝕖 𝕘𝕠𝕧𝕖𝕣𝕟𝕞𝕖𝕟𝕥.
𝕀 𝕛𝕦𝕤𝕥 𝕔𝕒𝕣𝕖 𝕥𝕙𝕒𝕥 𝕨𝕖 𝕘𝕖𝕥 𝕥𝕠 𝕜𝕖𝕖𝕡 𝕣𝕦𝕟𝕟𝕚𝕟𝕘 𝕥𝕙𝕖𝕞.❞
– 𝕁𝕠𝕖𝕝 𝕊𝕥𝕖𝕚𝕟, 𝕃𝕠𝕤 𝔸𝕟𝕘𝕖𝕝𝕖𝕤 𝕋𝕚𝕞𝕖𝕤, 𝔻𝕖𝕔𝕖𝕞𝕓𝕖𝕣 𝟙𝟡, 𝟚𝟘𝟘𝟠.
📎 https://www.islam-radio.net/islam/english/jewishp/usa/JIA-Federal-Reserve.htm
The government employs public servants who are not qualified to carry out the duties they are assigned .
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