Economic Overview For 2019 Jan 01, 2019 by Marilyn M Barnewall
As James Carville once said, “It’s the economy, stupid.”
As we enter 2019, the Federal Reserve is once again in the headlines for increasing interest rates. The Fed’s increase is what is responsible for the upsy-downsy stock market, not President Trump’s tariffs (though the fake media will tell you otherwise).
There are three important things to remember about the Federal Reserve System: 1) It is a private corporation and is not part of the government; 2) It is merely a wholesaler of financial services and does nothing that cannot be done by the United States Treasury Department; 3) American taxpayers are responsible for the unlawful debts accumulated by the Federal Reserve.
“Well,” you may say to yourself, “it’s only fair that we pay for Social Security and our highway system and all of the things that cause the national debt, isn’t it?”
You might want to take a look at the loans that have nothing to do with America and its well-being before being so generous with your forgiveness:
A 2006 audit showed that during the period from December 1, 2007 through July 21, 2010 the Fed made $16 trillion dollars in loans (our total national debt is $21 trillion) to US banks and corporations and to foreign banks.
Foreign banks? That’s right… foreign banks. The bank bailout of September 2008 was nothing compared to secret loans made by the Federal Reserve System about which the Congress was never informed.
Thanks to then-Congressman Ron Paul who kept pressure on the House of Representatives to pass legislation ordering the General Accounting Office audit of the Fed.
The loans were to cover up secret bank and corporate bailouts. They were made to prevent the banks and corporations who borrowed the money from bankruptcy. The money was loaned at nearly zero percent (.01%) interest – as in 1/10th of 1%.
Citigroup, Inc (Citibank): $2.5 trillion
Morgan Stanley: $2.04 trillion
Merrill Lynch & Co.: $1.949 trillion
Bank of America Corporation: $1.344 trillion
Barclays PLC (United Kingdom): $868 billion
Bear Sterns Companies, Inc.: $853 billion
Goldman Sachs Group, Inc.: $814 billion
Royal Bank of Scotland PLC (UK): $541 billion
JPMorgan Chase: $391 billion
Deutsche Bank AG (Germany): $354 billion
United Bank of Switzerland AG: $287 billion
Credit Suisse Group AG (Switzerland): $262 billion
Lehman Brothers Holdings, Inc. – NYC: $183 billion
Bank of Scotland PLC (UK): $181 billion
BNP Paribas SA (France): $175 billion
Dexia SA (Belgium): $105 billion
Wachovia Corporation: $142 billion
Dresdner Bank AG (Germany) $123 billion
Societe Generale SA (France): $124 billion
So, now that we know the Federal Reserve System is not only unlawful under the Constitution; we also know it takes part in activities involving banks and corporations around the world over which it has no jurisdiction. Or does it?
I have said for many years that the Fed needs to be absorbed into Treasury. It is an illegitimate organization approved by a Democrat Congress in 1913. The Democrats of 1913 were no differenr than they are now. They voted without their opposition present and approved the Federal Reserve giving them a 100-year contract (unless my math is bad, it expired in 2013).
Article 1 Section 8 of the Constitution says the following:
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow money on the credit of the United States;
It says more, but for our purposes this is sufficient. As I said, the Fed is an unconstitutional entity.
Aside from the liberal progressive tendency to lie if it allows them to tell you what and what not to do or think, no one seems to understand real trends and why the Fed is raising interest rates, how it impacts the stock market, why having the stock market drop so radically is actually a signal of a Trump success, and how both impact our international trade relationships.
The people who call themselves “experts” and appear on business shows spouting their favorite anti-Trump trash are playing checkers. Trump is playing chess. He’s playing like a champion. The Bible has something to say about what is happening.
“But God has chosen the foolish things of the world — to confound the wise; and God has chosen the weak things of the world — to confound things that are mighty; and the base things of the world and the things which are despised God has chosen . . . that no flesh should glory in his presence” 1 Corinthians 1:27-28
By making Donald Trump our President, God has succeeded beyond comprehension at confounding “the wise.”
The best way to destroy a nation is to destroy the value of its currency. The best way to destroy the value of a currency is to print too much of it. How else can the globalists pave the way for China to become the international currency? The easiest way is to devalue the dollar. President Trump is taking the right action to prevent that.
President Trump did not create the problem. It has existed for a long time. Barrack Obama, George W. Bush and Bill Clinton did nothing about it.
Like North Korea, Trump inherited the problems. Unlike his predecessors, he’s trying to do something about it.
It began with Alan Greenspan when he kept the cost of funds for banks so low that it became cheaper for banks to borrow from the Fed than pay reasonable rates of deposit interest to customers. That’s a primary reason you cannot get any kind of reasonable rate of return on your savings account or certificate of deposit.
Former Fed Chairmen Ben Bernanke and Janet Yellen kept the Fed funds rates low and our currency was being totally debased. What the current Fed Head Jerome Powell is now doing is what Paul Volcker did back in the early 1980s when the cost of funds got too high. Because of Volcker’s actions, the economy we had in the mid-to-late 80s and throughout the 90s was very strong.
Powell’s problem is the opposite of what Volcker faced, but the solution is the same. Volcker had to bring interest rates that made it impossible to buy cars and homes down; Powell must get low interest rates that are debasing the currency up. Fractional-reserve banking, implemented by Greenspan in the 1990s and continued by Bernanke and Yellen, is the cause of too-low interest rates.
The media wants you to believe it is President Trump’s tariffs on unfair practices involving international trade that is causing radical stock market shifts, but that is not true.
The cost of Fed funds must go up. Yes, it will have a negative impact on the stock market… but the market has been over-valued for many years. Companies are not worth what people are paying for a share of stock in them. That, too, needs to be corrected and the Federal Reserve’s actions will achieve it.
I believe the Fed will be absorbed into Treasury… its illegitimate contract was over in 2013. The Constitution gives responsibility for spending and creating money to the Congress, not a private corporation. We will, thus, take a constitutional step back towards the legal parameters established by our founders and away from a non-government owned central bank controlling economic policy for the nation.
We will probably have a fairly serious recession in 2019 as the markets stabilize. The Democrats love that possibility thinking it is a presidential race advantage but have underestimated just how much the American public hates the Federal Reserve and how much they support their President. The market will right itself in plenty of time for the 2020 election.
Once the Fed is gone, it will be possible to issue a new currency and also include a possible revaluation of the dollar. Look at the bills you currently have in your wallet. They say “Federal Reserve Note.” A “Note” is a loan… like your mortgage note with the bank. As I said earlier, American taxpayers are responsible for the debts of the Federal Reserve which is why the currency in your billfold says “Note” on it. Because we have a $21 trillion debt (some of which is justified and constitutional, some of which is not), every dollar that is printed represents a debt – represents the Federal Reserve lending you money.
Contrary to what the media wants you to think, Trump’s economic policies are positive and needed. There is nowhere it is more apparent that an effort to destroy this nation was well underway than in the way the Federal Reserve System has mismanaged our currency. Because of the Fed, not Donald Trump or his tariffs, the stock market will likely have a dose of the flu for awhile this year.
The stock market can get sick and the nation feels its pain… but the market recoups and moves forward. When your commercial banks get sick, the nation can die.
That is what Donald Trump’s actions are in place to prevent.
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