Curried Wealth Building
Finding an Edge

If you want help with your finances, give me a call at 703-791-3243.
April 29, 2012
Issue 196  -  The Not So Federal Reserve
If you've never read the book above, I highly recommend it.  It details the genesis of the Federal Reserve and all the skullduggery involved.  This was a nonmilitary coup of the United States with the result being bankers in charge...of everything.  It is a sad state, but it is reality.  Most have no idea and are under the false impression that the Federal Reserve is there to help us. 
The reason the name Federal Reserve was chosen amounted to pure deception.  Convince the public that the entity was within the government and most would accept it.  If it had been presented as it actually was, an external central bank, there would have been much protest. 
The original mandate fo the Fed was threefold; price stability, maximum employment and moderate long term interest rates.  Only the first two are regularly mentioned these days.  How has the Fed done with these?  Not so good.  Let's take a look at some prices.
Comparison of Average Prices of 2008 to 1913
Milk (gal.)
Bread (lb.)
Eggs (doz.)
Average Wage
Income Tax (Federal Only)
1% ($12.96)
18.5% ($6,922.5)
Disposable Income
Gas (gal.)

These prices are from 2008 and most have risen even more (see gas) but the point is made.  If the Fed's job is price stability, then they have earned an "F."  The real scheme is to CONVINCE people that 2-3% inflation is stable.  No exponential increase is stable.  This is by definition.  Therefore it becomes clear that the Fed isn't about price stability.  Employment is also at a near all-time high if you include the "disillusioned."  This means the Fed hasn't lived up to their promised mandates.  This isn't because they couldn't, it's because they weren't trying.
In essence the Fed is there to provide cover for the theft of American's assets and to protect the banking class.  The banking class is running around with a stack of "get out jail free" cards and you and I have to obey the law.  If we steal money from someone, we go to jail.  We don't get to say, "that was an accounting mistake."   Remember, the Fed received a 6% interest rate from the U.S. Government on their funds by LAW.  Wouldn't you like to receive 6% risk free?  Me too.
One of the largest examples of the Fed's complicity in crime is the TARP program.  Remember TARP?  The Troubled Asset Relief Program.  This was the savior for America which would have went down the toilet had it not been passed.  Remember this:
Yes, some in congress were lied to about the ramifications of not passing the TARP bill.  Brad Sherman was told marital law would have to be implemented.  These were patently lies.  The bankers have no shame about lying.  They look only to protect themselves.   That's obivous.  Does anyone, with 20/20 hindsight, really believe that the United States would have collapsed into chaos if TARP hadn't been passed that week?  That's nonsense.  And just what did this cost?  Let's go to the Special Inspector General for TARP: (urbansurvival)

Word from SIGTARP

Yep, after all the MSMBS about how the TARP program was "free" and saved the world, we found the report from the Office of the Special Inspector General for the Trouble Asset Relief Program out yesterday to be a bit eye-opening  - especially these notes from the Exec Summary:

  • "It is a widely held misconception that TARP will make a profit. The most recent cost estimate for TARP is a loss of $60 billion. Taxpayers are still owed $118.5 billion (including $14 billion written off or otherwise lost).

  • A significant legacy of TARP is increased moral hazard and potentially disastrous consequences associated with institutions deemed “too big to fail.” TARP’s legacy also includes the impact on consumers and homeowners from the large banks’ failure to lend TARP funds. TARP continues to be subject to criticism that TARP helped large banks but not homeowners.

  • In addition, after 3½ years, community banks have an uphill battle to exit TARP because they cannot find new capital to replace TARP funds. Finally, TARP’s legacy includes whitecollar crime that SIGTARP is uncovering and stopping."

To be sure, a large number of readers were critical of my comments at the time that TARP was nothing more than a bankster-class hold-up of the taxpayers, but with a cost of $60 billion and IOU's for almost $120-billion, I'd say our skepticism was correct and - like it or not - SIGTARP data concurs. 


We been had.  And since the bankster class has pulled off too big to fail once, we can almost certainly expect bigger BOHICA's to come.  See why I'm a little bit skeptical of Fed happy-talk?

So the predictably obvious result that TARP was a scam is now confirmed.  We didn't "make" any money from bailing out bankrupt entities.....duh.  We're also on the hook for many more billions in the future.  This debt creation/money printing is of course the only true mandate of the Fed and that leads to more and more indebtedness.  Without debt they would not exist.  Here is the status of debt for consumers:
Contrary to Wall Street pumpers, the consumer is not increasing their debt.  As the chart shows consumers are actually pulling their horns in and saving a little.  However, the Fed can't have that so "students" are being saddled with billions in debt for their "education."   The college scam has reached epidemic proportions with college now averaging close to $30,000 a year at private schools.  This chart is misleading the reader to assume that normal consumer debt is increasing and that buyers of things they don't need is back in full swing.  Why is the consumer tapped out?  Here's why:
Falling incomes CAN'T lead to more spending without debt.  Therefore this chart shows that consumers are running out of income to support higher and higher debt levels.  This has led to the federal government picking up the debt creation slack.  As you can see here, the slack has been rather large:
This is a scary chart in that it shows that we are in no way improving the national debt.  The reason is because we can't.....without collapse the economy.  There is a chart which I didn't show which tracks the median income versus unemployment.  The unemployment rate is supposedly falling at the same time as incomes are falling.  Would that be a good outcome?  Obviously not because that means people are taking lower paying jobs.  Not exactly a rosy scenario. 
No, the "Federal" Reserve is not there to help us.  It's only there to give the appearance of an autonomous authority monitoring things.  This is a lie.  The Fed is a scam.  The sooner it is abolished, the faster we can get our monetary system and country back.  I believe that this will only happen once an "event" of some type triggers it.  No politician has the clout to pull this off and most of them are directly under the control of the money interests.  When this event occurs you want to have that gold and silver insurance policy in place, trust me on that. 
Next week I will restart the stock section with my thoughts on each of the companies/investments.  
I'll close this week with a video which was briefly shown in the last week's.  Here is a longer version of the water cannon that allows you to swim like a dolphin.  If you don't think it would be fun to try this after seeing it, you might want to check your pulse.  Have a great week!