The Truth About the Fed – the United States has become — at least from a monetary perspective — ruled by a hidden oligarchy. The voters sense that the ship of state is not responding to their commands, but cannot seem to identify the source of the problem.

Yesterday, a Japanese Professor, Kaoru Yamaguchi, came across my information on how the Fed silences an honest evaluation of the debt money system by academics in the U.S.
The way the Fed silences critics is by controlling the American economics journals. How? They fill their editorial boards with former Fed employees, or wanna-be employees. This makes it impossible for a professor with a monetary reform perspective to be published, and professors have to publish to be able to keep their jobs.
According to Professor Yamaguchi:
“Now it has become clear, with high probability, why I was expelled from the academic profession as the professor at the Graduate School of Business, Doshisha University, Kyoto, Japan, a year and half after my US Congressional Briefing, July 20, 2011, (invited by the former Congressman Dennis Kucinich) in which I presented … results that strongly support the Chicago Plan.
I’m afraid the [Bank of Japan] has been exerting similar controls over Japanese economists.”
So, what is at the root of the Fed’s deception and how do we fix it?
The deceptions begin with the way the Fed categorizes itself – as a “quasi-governmental organization”.
They want to be a federal government organization to protect themselves from lawsuits. But they want to be a private organization to protect themselves from effective oversight of the U.S. Congress, claiming the Fed must maintain independence from politicians who would usurp the powers of the Fed for their own political purposes.
Ironically, it is clear that the Fed’s independence from the political class does not — in fact — serve the public interest, but only the interests of the biggest banks.
In 2008, Congress investigated the causes of the 2007-2008 financial meltdown. They discovered that the biggest banks paid little attention to one of the Fed’s primary control “levers”, the reserve requirement ratio. They found out that JP Morgan and Citi, instead of being leveraged 9-to-1, were actually leveraged 52-to-1. In other words, these banks were illegally creating money to benefit their own profit-making interests.
So what this boils down to is whether one believes in true representative governance where the will of the people reigns supreme. In the existing debt money system, the Fed is disguised as the representative of the common good, when demonstrably, it is not.
The Fed is, in reality, merely a metaphorical curtain disguising the real power of Wizard — the plundering of America by the biggest banks by out-of-control counterfeiting of the money supply.
The result: the United States has become — at least from a monetary perspective — ruled by a hidden oligarchy. The voters sense that the ship of state is not responding to their commands, but cannot seem to identify the source of the problem.
The cure for al this is a return to a sovereign money system — as Joseph Huber so correctly points out – a “state money” system. This is a system not run by the banks and for the banks, but run by a Monetary Authority that actually operates independently, and in the public interest.
However, the road to monetary reform is filled with “rabbit trails” and booby traps. The two most popular of these false solutions are a return to gold-backed money, and auditing the Fed.
A return to gold money – even if it wasn’t totally impractical – would only guarantee centralized control of the money supply, as any “scarce-money solution” would do. It would be grand for the gold dealers and gold hoarders, but a disaster for the rest of us.
Auditing the Fed sounds good, but after years of bookkeeping investigations – no matter what was uncovered — would we be one inch closer to the root of the problem? No!
Many years, if not decades could be wasted pursuing either of these false solutions — ultimately to no good effect.
The root of the problem is the bank money system – counterfeiting by the banks. And what insures the continuation of this system better than allowing the banks to lend this counterfeit money out to the government in the form of a national debt? History will look back on this craziness and wonder why we couldn’t have seen it sooner.
To keep myself on track, I look to two guide stars in the otherwise confusing firmament of monetary reform:
1. It’s not what backs the money that is important; it’s who controls its quantity.
Currently the biggest banks are clearly in control of the quantity, because most money is counterfeited – that is, created out of nothing — then lent out as additional debt. However, a return to state money can never be sustained — no matter how arduous the battle to attain it — without step #2.
2. No more national debt! As long as the sovereign is allowed to borrow, we would remain in the bank money system. And eventually the big-banking class will seize effective control over the political class once again – if it ever really gave it up. Why would the state borrow when the state can create?