It is time to end the Fed

It's time to end the Fed
By Nafeh AbuNab
Friday, 11.28.2008, 08:59pm


The wild fires raging in California no doubt have the finger prints of arson, as did the wildfires that preceded them. A person who is facing foreclosure figures instead of burning his own house and risk being convicted of insurance fraud, he lights up a nearby dry brush, and nature does the rest. The same scenario is taking place in Detroit; burn the empty house next to yours, and the fire spreads to yours, and you're saved from foreclosure and you collect insurance.


U.S. Treasury Secretary Henry Paulson (L) and Federal Reserve Chairman Ben Bernanke arrive to testify at the House Financial Services Committee hearing on "Oversight of Implementation of the Emergency Economic Stabilization Act of 2008 and of Government Lending and Insurance Facilities; Impact on Economy and Credit Availability" on Capitol Hill in Washington November 18, 2008. REUTERS/Kevin Lamarque

Natural disasters have been coming as acts of mercy to distressed areas. When people get hit with a tornado or a hurricane, or a wild fire, they get federal money and assistance to rebuild, plus the sympathy of the nation. But when they're going through foreclosure, they get raped in the dark and they get no sympathy. The justice system is unjustly against them, and puts the blame on them, for losing their job, or for taking a mortgage bigger than they can afford.

One's home is his inner security and refuge. It should be safe, unthreatened, and protected against invasion or foreclosure by banks or cities. In fact foreclosures are unconstitutional and should be outlawed as such. The fourth amendment to the Constitution clearly states: "The right of the people to be secure in their persons, houses, papers, and effects against unreasonable searches and seizures, shall not be violated…"

The foreclosure epidemic has been the biggest disaster to hit the U.S. – ever. The 3.5 million homes that have been foreclosed upon have caused the displacement of 14 million people, if we consider that only 4 people lived in each house, which puts it at 14 times the magnitude of the Katrina disaster. It is the worst form of child abuse and all the child abuse laws in the country are not worth the ink they're written with, if they can't protect children from losing their homes.

While talking to various mayors and officials as to why they've not passed a bill putting a moratorium on foreclosures on homes in their cities, I get the same answer that Detroit Mayor Ken Cockrel, Jr. gave me: "We are afraid of the retaliation of the bankers, of withholding credit, or stopping their operations in the city." I wonder what planet these officials live on? Don't they understand that is what the "credit crunch" problem is? That what is causing this whole epidemic is the banks not lending money while demanding repayment, which is emptying the markets of cash, and bringing the economy to its knees?

The problem with the system is that it is a siphoning system, not an injection system. The theory behind forming the Federal Reserve Banking system is that the Feds would have 12 branches serving all the regions of the country. Money would flow from the central bank to the various regions, then into the vaults of the banks, then into the hands of people. In theory it sounds good. The problem is that money would have to flow back up to the top at a rate faster than it's injected in. And that is because of the credit system. Each dollar that is injected would have to come back as a dollar and 5 cents or 7 cents or whatever the prime lending rate is. And the problem is compounded by the compounded interest. So a $100,000 mortgage goes through this cycle. It is lent to the local banker at, for example 3%, which lends it to the homebuyer at a 7.25% compounded interest over 30 years. By the time the homebuyer pays it back he has paid $270,000! So $100,000 was injected into the economy and it came back as $270,000. Therefore it is not an injection system that is creating wealth, rather it is a siphoning system, that is siphoning wealth out of the communities, because in the final analysis it sucked $170,000 out of the borrower. Since the $100,000 was printed but the interest wasn't, then only the $100,000 would make its way back and the $170,000 becomes a deficit, a debt that can never be repaid.

And that is how you enter the house of bondage that God warned of in his first commandment. Over 94 years of this practice, since the establishment of the Feds in 1914, under Woodrow Wilson's administration, this is where we stand today. The federal government has a budget deficit of 10.5 trillion dollars. The un-funded commitments of the federal government, in Medicare and Social Security, stand at 30 trillion dollars. The collective debt of the people in State debt, municipal bonds, corporate debt and consumer debt in mortgages and credit cards totals 41 trillion dollars. Therefore our collective debt stands at 81.5 trillion dollars. Most of that debt is secured by real estate, but the bottom fell out of the real estate market; the value of all real estate in the U.S. would be appraised, now at today's market price, at around 8 trillion dollars. That's why the mortgages became "toxic securities" that are selling at 7-8.5 cents on the dollar, because that reflects its real value. This means that if the country was sold 10 times over, it won't come up with the principal, let alone the interest! That's why bankers aren't lending a penny against real estate, because they know they can't get it back. And that is where the "credit crunch" is, while idiots like Suze Orman have shows on TV telling people to keep paying their credit cards and mortgages so they don't ruin their credit scores! The problem isn't in the credit system, the credit system is the problem!

That's how the country's wealth has disappeared overnight, because the more we were producing the deeper we were getting in debt, as the cover for the dollar has been the production in GDP. We have been creating wealth for the Feds and its 12 owners, who have been buying factories and moving them to safety, out of this country to China, India, Mexico and others. That's why China has been experiencing hyper capitalism with all that money injected in it. So why did they choose mainly China? Because they needed a country that could stand up to the military might of the U.S. and can protect their stolen money from being recovered. That's how China became the major buyer of U.S. treasury bonds, and turned into its biggest creditor. And that's how the seeds of conflict are planted. That's why Warren Buffet describes it as an "Economic Pearl Harbor." It is an economic occupation that is worse than military occupation, because you don't see your enemy and don't know how to fight him.

To keep the eyes of the country away from their thievery and economic siege, they've been creating different crises to distract us from the bigger picture. First they created the oil price crisis, and that was all we were worried about, now the home foreclosure crisis. They are not the least bit interested in resolving it. Their intentions became very clear in the congressional hearing held last week under the chairmanship of Dennis Kucinich. While the bail out package clearly spells out provisions for solving the foreclosure crisis, Henry Paulson came straight out and said they have no money allocated to alleviate the pressure on homeowners. In fact they've been splitting the loot of the bail out package as soon as they disburse it. Bank of America announced that $2 billion of the $25 billion they received from the treasury has been set aside for "managerial compensations." AIG, which received, so far, $152 billion, has set aside $500 million for managerial compensations! The Big Three that are fighting for their life, and really need the $25 billion, and form one of the main pillars of the U.S. manufacturing base, are being denied the money.

While all this is only a game to the Fed and its owners, their hands are covered with the blood of the hundreds of thousands of people who have committed suicide over losing their fortunes and life savings, and the millions of fetuses aborted for fear of not being able to provide for them, and they carry the responsibility of the misery inflicted on every family that lost its home and split up because of the economic hardship. It is time to end this misery. It is time to end the Feds.

The masses are finally waking up. "End the Fed" rallies were organized simultaneously in 33 cities on November 22, the 45th anniversary of the assassination of John F. Kennedy, the last president to stand up to them. Ron Paul and Mike Gravel led the millions who demonstrated around the country in front of Federal Reserve buildings across the nation. And it is an ongoing campaign. To get involved and get more information visit www.EndTheFed.us.