On March 23, Wall Street on Parade reported that the Federal Reserve became a new legislative body with unprecedented powers to decide which companies and banks live or die in the midst of the covid-19 hysteria which is propelling the western nations into the greatest crash in history.
Federal Reserve purchases of toxic securities from the balance sheets of banks has also become limitless as the former cap of $500 billion/year has been nearly reached in only one week of bailouts ($272 billion in treasuries and $63 billion in mortgage-backed securities since March 15).
Meanwhile overnight repo loans have officially hit the staggering height of $1 trillion/night- which is added to the $1 trillion/week fourteen day loans already in place. The overnight repo loans began in September 2019 at $50 billion/night and have risen steadily to $100 billion/night by February and skyrocketing to their current proportions by March 15.
Yet in spite of these trillions of dollars produced from thin air, Wall Street on Parade also reported that the “big 5” too big to fail behemoths have lost a total of 45% of their value in only 5 weeks with Citigroup leading the race to the bottom with a whopping loss of 51.7%. Amongst those big 5, common equity capital (which sustains the $1.2 quadrillion global derivatives time bomb which is ripe to explode) has already lost $154.4 billion (of a total of only $603 billion among the Big 5 alone). Cumulatively, over $9 trillion has already been issued to bail out the failing speculators since September and If this isn’t a wake up call to the very real danger of hyperinflation, and broader danger of marital law, then I don’t know what is.
Due to the South’s resistance to industrial development and national banking (illustrated brilliantly in Robert Ingraham’s 2015 opus Manhattan’s Struggle for Human Freedom Against The Slave Power of Virginia), the unbearable tension within America became the basis for the 1861-1865 Civil War. Following the earlier example of Hamilton, Clay and John Quincy Adams, Abraham Lincoln saved the union via the creation of constitutional greenbacks as a form of federal credit issued via the Treasury and tied to the actual needs of the people. These needs extended beyond the war and into the construction of the greatest mega-project of the time- the Trans Continental Railway (1863-1869). Lincoln’s allies such as Senator Sumner, Henry Carey and William Seward fought desperately to continue Lincoln’s vision of extending the use of greenbacks beyond the Civil War to industrialise and fully liberate the south and also other nations globally. These efforts were sabotaged by Proto-Deep State agents in America which eliminated the greenbacks, re-empowered the slave power and established the “Specie resumption Act” of 1871 that chained American progress to a worshipping of gold and led into the 1913 creation of the Federal Reserve.
The Case of FDR
President Franklin Roosevelt is another patriot often criticised harshly for creating much debt during the New Deal, but unlike the debt created during 1929-1933 under Hoover which merely bailed out failing banks with no real world job creation or growth of the real economy, FDR’s revolution was very different. Roosevelt’s Tennessee Valley Authority transformed the southeastern states from rural backwater hillbilly patches where illiteracy averaged 80% in 1933 to a scientific and engineering hub by 1945 (which saw illiteracy drop to 12%) is but one of the thousands of trans-formative projects which “debt” created under real American System leadership. Breaking America out of the depression involved a life or death war with central bankers which saw FDR face assassination attempts, military coups, and sabotage from the deep state during his entire 12 year presidency which I outlined in depth in my recent paper How to Crush a Bankers’ Dictatorship.
The Case of JFK
John F. Kennedy also created debts but following the role model of Franklin Roosevelt, those debts were tied incredible mega-projects in energy, water, transport and especially space exploration (NASA’s budget reached nearly 4% of US GDP at its peak before the slashing self-sabotage began in 1966). Recent reports have proven that for every $1 spent on NASA in order to put a man on the moon, over $10 were returned to the American economy in the form of spin-off technologies, inventions and jobs touching on every aspect of society- health, engineering, computing, chemistry, energy, and more.
In all cases above (Lincoln, FDR and JFK), the use of national productive credit was the key to success. All of these leaders circumvented the influence of the City of London agents in America (aka: Wall Street) in their own way. While FDR and JFK fought to break the monopoly over credit established by the Federal Reserve in 1913 via FDR’s Reconstruction Finance Corporation that acted like a National Bank, and JFK’s efforts to create industrial investment tax credits and a silver-backed treasury issued currency outside of Federal Reserve Control.
Report on a National Bank and Public Credit, Report on Manufactures, and Report on a Mint ). All of these reports should be studied seriously during today’s systemic crisis as the principles they set out are not only in total opposition with the false “left” Keynesian vs “right” Austrian school arguments constructed by the Fabian Society in the 20th century, but are remarkably in alignment with the best practices of thinking and behaviour of China’s Belt and Road Initiative and broader multi polar alliance which is humanity’s last and best hope to break from the future-less system of oligarchy once and for all.
Matthew Ehret is the Editor-in-Chief of the Canadian Patriot Review , a BRI Expert on Tactical talk, and has authored 3 volumes of ‘Untold History of Canada’ book series. In 2019 he co-founded the Montreal-based Rising Tide Foundation and can be reached at [email protected]
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.