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Can Kucinich Drive A Stake Through the Zombie Heart of the Fed? (Part 1-Return to Jekyll Island)


Stop talking about Kucinich and the olive pit. Forget about the ride on Air Force One.

Kucinich has positioned himself to plunge a stake through the zombie heart of the arch enemy of American well being, The Federal Reserve Bank.

WE HAVE GOT TO HELP HIM AND PAY ATTENTION. The Bank Mafia of America has captured the minds, hearts and souls of almost all of our amoral leadership in the administration and Congress who have to a grotesque degree stopped watchdogging our rights and needs for a stunning amount of time now.

Abandon all hope that Obama or the legacy Democratic Party will rally to save Americans from economic terrorism. In fact, trust that they will rally to enable the economic terrorists.

We’ve got Dennis Kucinich. We’ve got Ron Paul. We’ve got the Green Party. We’ve got those citizens finally rising above the media-inflaming Blue v. Red, divide-up-and-conquer hype that is earnestly trying to distract America from its economic raping, from facing down the real enemy of Americans, the oligarchs.

I made up a riddle the other day. What’s the difference between a Republican and a Democratic politician? Answer: Whether the knife goes into your front or your back.

Kucinich’s bill, H.R. 2424, resonates Green Party values. It would bring sanity and wholesome, citizen-nurturing solvency to America. It requires our massive support and attention right now.

Ralph Nader asked the bottom line ultra-sensible question about the insurance industry capture of America during Obama’s, Congress’s and the media’s magnificent health care betrayal kabuki last year. Why are the “vendors” allowed to create the terms of American healthcare, terms that have destroyed, are destroying and will continue to destroy the well-being of most Americans?

Banks should also be providing a very much humbler role as “vendors” but are another cabal of profit-over-people monsters impacting more and more people with, again, let’s call it what it is, ECONOMIC TERRORISM.

At a Manhattan Greens forum last Wednesday, guest speaker Sue Peters laid out the incredible and enraging history of how a tiny but obscenely wealthy crew of the bankster mafia in America in 1910 managed to successfully capture the monetary system of America right under the clueless noses of the public.

Consider this quote shared by Ms. Peters:

"Whoever controls the volume of money in our country is absolute master of all industry and commerce...when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate." — James A. Garfield

According to Ms. Peters and some further revelations from Wikipedia, in November 1910, 7 men, a senator (majority leader of the Senate, Nelson Aldrich) and the assistant Secretary of the Treasury Dept. (A. Piatt Andrew) along with 5 of the countries’ leading financiers who represented 1/4 of the world’s wealth arrived at the “Jekyll Island Club” on Jekyll Island off of Georgia ("jackal" would be more appropriate in hindsight) to discuss the American banking system and monetary policy. This meeting would draw up the blueprint for the Federal Reserve System. The creation of a U.S. central bank. Senator Aldrich’s participation guaranteed that parts of the draft would be DIRECTLY incorporated into the 1913 Federal Reserve Act.

Wikipedia, btw, also reveals that Ben Bernanke stayed on Jekyll Island last year for two days in November, the same month of the original plotting, to commemorate the 100th year anniversary of that fateful meeting.

Forbes magazine founder Bertie Charles Forbes wrote:

Picture a party of the nation's greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written... The utmost secrecy was enjoined upon all. The public must not glean a hint of what was to be done. Senator Aldrich notified each one to go quietly into a private car of which the railroad had received orders to draw up on an unfrequented platform. Off the party set. New York's ubiquitous reporters had been foiled... Nelson (Aldrich) had confided to Henry, Frank, Paul and Piatt that he was to keep them locked up at Jekyll Island, out of the rest of the world, until they had evolved and compiled a scientific currency system for the United States, the real birth of the present Federal Reserve System, the plan done on Jekyll Island in the conference with Paul, Frank and Henry... Warburg is the link that binds the Aldrich system and the present system together. He more than any one man has made the system possible as a working reality.

The meeting had to be clandestine since the mood of people, in fact, internationally, was anti-bank, anti-Wall Street, especially after the Panic of 1907. It was vital for the banksters to devise a highly slick program to seduce a country of citizens mandating quite the opposite of their scheme, that Congress shore up the checks and balances system in terms of the economy. Checks and balances? The banksters willed to dismantle them entirely and deliver the monetary system entirely into their unscrupulous, forever-profits-over-people control.

And so it happened. The same banker-prepared bank plan was presented to Congress by the head of the National Monetary Commission, Senator Aldrich.

This is yet another chapter beyond the Thomas Jefferson and Alexander Hamilton scenario. The power struggle between a citizens’ republic and a banking oligarchy.
Again, the public wanted sane and equitable monetary reform. What did Congress give them? Full out capture by the banksters and pretended it was reform. Sound familiar? The right to private ownership of the national treasury. Hello? Private individuals who thereafter controlled the nation’s money and credit. It was unconstitutional but, hey, look at the allergic to accountability, legality and all that is constitutional Obama administration.

Back then some very serious, resourceful, brave and noble farmer and small business populists fought hard against the travesty, but with a captured Congress and an obtuse and/or passive citizenry, what was to be done?

So the proverbial songs and dances of disinformation happened back then, similar to the ones now. They confused America and allowed Congress to totally defy the mandate of the people.

First, the pretense that the Federal Reserve Bank was to be controlled by Congress, even though the directors were to be chosen by the bankers at least indirectly under the auspices of the executive branch NOT the Congress. The “Federal Advisory Council” would then be chosen by the appointed directors of the 12 Federal Reserve Banks and these council members would remain UNKNOWN to the American people.

A second stage in the song and dance routine was to set up the pretense that the banking system was multi-branched and sole domination would not come from the New York cabal of bankers alone. Appearance vs. reality. Farmers, small businesses, their needs and the needs of other regions of the countries would not ever be a priority. The needs of the Eastern gated-community elite would always prevail. Class war it was and still is.

It is time to restore the American monetary system to its original and legitimate form. Ms. Peters reminded us that when Canada restructured their banking system for the citizenry not the profiteers, universal health care became a natural reality. Universal health care, in shameful, hold out America, is never going to happen with its present, debilitating debt-based economy.

A lot of other restorative things won’t happen here and a lot of worsening things will until the Bank Mafia is defeated and the banking industry is returned to limited and legitimate vendorship and not racketeering.

Kucinich has the answer -- THE RESCUE -- all typed up and entered into Congress. But we know what happened to Ron Paul’s efforts on this score, to disempower the Fed. If we don’t cover Kucinich’s back and DEMAND the legitimate return of the US monetary system to the control of a Congress serving the citizenry and not corporatist pirates, and that will take massive vigilance on our parts, we are dooming our country and future generations to third world serfdom to oligarchs.

The amiable Obama mouthing double-sided song and dance bipartisanship bullshit is desperately trying to keep the economy from foundational recovery as is most of Congress, beholding to the avaricious banksters. I agree with Glen Ford of Black Agenda Report. Obama is an “inside man” for the oligarchy. Some believe he is not that intentionally craven. Okay, maybe Obama with the corporatist elite is more like one of those doomed, delusional love addicts who believes it is possible to get “love from a psychopath.” Whatever. It still dooms us, doesn’t it? Chris Floyd christens Obama the “Continuer in Chief”. Absolutely! Where’s the change? Obama is the king of “shining on” the citizenry. And unbelievably too many keep showing up for another game of Lucy and the football. He talks about “puddles in heaven,” science fairs and a faster internet as the country descends into a quicksand of profound and multiple crises.

The citizenry is confused and betrayed by him and the disinformation campaigns of both legacy parties and the pimped out media continuously guaranteeing that Americans won’t recognize who the true villains are to their own demise. The pragmatic faux-progressives stridently battle fellow victims of the banksters. And then there are the fools who tilt at the non-malignant windmills of a non-existent specter of socialism. All this as soft fascism keeps on hardening in America. It would all be laughable if it weren’t so Orwellianly tragic.

The Kucinich bill could pull America out of its quicksand if we could collectively grasp it, literally and figuratively. Can we? What kind of a tipping point do we need? What kind of a “bottom” must America plunge to until it wakes up and acknowledges the enormous dysfunction of its governance. We can’t rely on a Congress to do the right thing by us on its own.

Robert Malin writes about Dennis Kucinich and his bill:

“As the nation struggles with long-term unemployment at rates not seen in generations, contracted credit and the hoarding of public dollars by the banks, Congressman Kucinich (D-OH) today introduced a dramatic new proposal to establish fiscal integrity, reassert Congressional sovereignty and regain control of monetary policy from private banks.  The National Emergency Employment Defense Act of 2010 would allow the federal government to directly fund badly-needed infrastructure repairs and fund education systems nationwide by spending money into circulation without increasing the national debt.  The bill would end the current practice of fractional reserve lending, whereby the economy depends upon private financial institutions to lend money into circulation.

Congressman Kucinich stated, “The staggeringly bad employment and economic numbers represent a massive problem which cries out for bold action.  Rather than crossing our fingers and hoping that banks will finally lend some of the billions of public dollars they haven’t thus far seen fit to lend, we can take action. My bill would replace the Federal Reserve System’s dependence on private banks to create credit.  In its place, a Monetary Authority under the Treasury Department would directly inject liquidity into the economy by purchasing much needed public infrastructure repair. Today, we have idle capital, millions of able-bodied but unemployed workers, unused equipment, and record low interest rates. These conditions are the best possible time to make a long-term investment in our nation’s infrastructure. My bill would do exactly that.” 

This is was part of a Kucinich press release about the Federal Reserve Bank in May of 2009:

"The Federal Reserve has been operating in a governmental netherworld, free from scrutiny or oversight. We know the Fed has printed and loaned trillions of dollars, but we don't know where the money went. This bill will finally provide some transparency," said Kucinich."

"Traditionally the Federal Reserve has limited itself to setting the federal funds rate target (the overnight interest rate that banks charge each other) by purchasing government securities. Since August 2007, the Fed has drastically expanded its role in our economic stability by enacting programs to print and lend trillions of dollars directly into the economy."

"Despite the fact that the Fed's actions are a centerpiece of our nation's response to our economic recovery, we know almost nothing about how the Federal Reserve has addressed the crisis. It's time investors and taxpayers obtained a clear picture," added Kucinich.

The Fed has enacted several new programs to address the financial system's crisis including the Term Asset-Backed Securities Loan Facility (TALF), the Mortgage Backed Securities Purchase Program, and a number of other emergency lending programs that are not subject to Congressional oversight.”

Robert Malin does an excellent job explaining Kucinich’s Bill to Restructure the Federal Reserve.

“Dennis Kucinich has prepared a bill that will return control of the monetary system to Congress as it is clearly stated in the constitution.  This presents an opportunity for Libertarians led by Ron Paul to get "Constitutionalists" on board with the Progressive Caucus to end the mismanagement of our currency by a banking monopoly, and to reinvest that money into America to repair the damage that the the "Federal Reserve" has done to the economy.  We need to move away from a debt based monetary system.”

From the bill:

17) The authority to create money is a sovereign power vested in the Congress under Article I, Section 8 of the Constitution.

(18) The enactment of the Federal Reserve Act in 1913 by Congress effectively delegated the sovereign power to create money, to the Federal Reserve system and private financial industry.

(19) This ceding of Constitutional power has contributed materially to a multitude of monetary and financial afflictions, including—

(A) growing and unreasonable concentration of wealth;

(B) unbridled expansion of national debt, both public and private;

(C) excessive reliance on taxation of citizens for raising public revenues;

(D) inflation of the currency;

(E) drastic increases in the cost of public infrastructure investments;

(F) record levels of unemployment and underemployment; and

(G) persistent erosion of the ability of Congress to exercise its Constitutional responsibilities to provide resources for the general welfare of all the American people.

Malin quoting Kucinich:

“Banks pyramided their value by spending money into existence, greatly inflating the value of bank holdings, inflating the value of their asset bases, enticing unknowing investors to participate in financing schemes like the bundling of subprime mortgages, and ultimately bringing undercapitalized banks and the entire financial system to the edge of ruin, creating circumstances where the taxpayers of  the United States were called upon to save the banks from their own imprudent money-issuing practices, misspending and mis-investments. The banks’ ability to create money out of nothing ultimately became the taxpayers’ liability, and raises a fundamental question about a practice of money creation which threatens the wealth of the American people.”

End of Part 1 of 2

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beowulf's picture
Submitted by beowulf on

I would just analogize to healthcare--- imagine Kucinich had come up with a bold plan for healthcare reform, but somehow skipped right past advocating a single payer Medicare for All and gone right to a plan for socialized VA Hospitals for All.

Clearly existing banking system needs to be reformed and some elements now private should be administered by public officials (putting the Fed under the Dept of Tsy makes sense). However a plan to toss out the entire private banking system is as unnecessary (and as politically unwise) as a plan to require every doctor to become a government employee if they wish to continue practicing medicine.

So if Kucinich is advocating the banking equivalent of VA Hospitals for All, what would be the Medicare for All equivalent he should have gone for? I'd look at what Warren Mosler has proposed in terms of bank reform.

Proposals for the Banking System

Submitted by libbyliberal on

I know I tend to oversimplify and wrapping my mind around the financial stuff comes slowly to me. But the layers of non-transparency through the decades the Fed has been allotted seem obscene.

Are you afraid with this stuff about throwing out a baby in the bathwater? Overshooting the runway?

I worry about the Congress having the integrity and even intelligence as in competence to set up a system that works for the country. But God knows the status quo Fed et al. has been bottom line treacherous along with the exec branch enablers, Clinton's now Obama's pals. And Greenspan is still given red carpet treatment on Meet the Press. WTF???? The fiasco with Brooksley Born years ago with the credit default swaps and he patted her hand and told her not to fret about fraud, everything would right itself.

Interesting your comparison of VA Hospitals to Medicare for All scenario. Although the VA Hospitals were running more efficiently than Medicare iirc? Now both are in jeopardy with the deficit hawks. Will have to ponder that one.

Just read Montana Maven's blog about the one state bank left in the US that is citizen friendly, Bank of ND. Sue Peters spoke about that as a sane blueprint.

Submitted by libbyliberal on

(a) IN GENERAL.—After the effective date, and subject to limitations established by the United States Monetary Authority under provisions of section 302, the Secretary shall originate United States Money to address any negative fund balances resulting from a shortfall in available Government receipts to fund Government appropriations authorized by Congress under law.
After the effective date, unless otherwise provided by an Act of the Congress enacted after such date-
(1) no amount may be borrowed by the Secretary from any source; and
(2) no amount may be borrowed by any Federal agency or department, any independent establishment of the executive branch, or any other instrumentality of the United States (other than a national bank, Federal savings association, or Federal credit union) from any source other than the Secretary
 (b) LIMIT ON RATE.—The annual percentage rate applicable to any loan of money may not exceed 8 percent on unpaid balances, inclusive of all charges
For progressives, there is a plan to reinvest in America. Among other concerns, the preamble states
The United States is not financially capable of capitalizing on the burgeoning demand for wind, solar and other renewable energy technologies which reduce the cost of energy and help protect the environment, the continued use of non-renewable energies such as coal and oil create a national security crisis as well as long-term economic vulnerability.
So rather than paying rent for our currency we could use the funds to invest in technology, education and the general well being of the country providing the basis for a safe and sustainable future.
(a) IN GENERAL—Each year, the Monetary Authority shall instruct the Secretary to disperse grants over a 12-month period to the States equal to 25 percent of the money created under this title in the prior year. In the first year the amount of such grants shall be 25 percent of the anticipated money creation in that first year.
(b) USE OF GRANTS FOR BROAD-BASED PURPOSES.—The States may use such funds in broadly designated areas of public infrastructure, education, healthcare and rehabilitation, pensions, and paying for unfunded Federal mandates.
Before the end of the 120-day period beginning on the date of the enactment of this Act, the Secretary, in cooperation with the Secretary of Education, shall provide recommendations to the Congress for a program to help fund our educational system that will put the United States on par with other highly developed nations, and to sufficiently provide for universal pre-kindergarten fully funded State programs for elementary and secondary education and universal college at every 2- and 4-year public
institution of higher learning and create a learning environment so that every child has an opportunity to reach their full educational potential.
SEC. 403. ESTABLISHMENT OF FEDERAL REVOLVING FUND....for national emergencies

zot23's picture
Submitted by zot23 on

for progressives and the tea baggers. You might hate their guts, but we are strange bedfellows (if we're smart) on this issue. They hate the FED, we hate the FED, and although our solutions are different, there is room for a coalition. We really, really should be reaching across the aisle on this one folks, it's in everyone's best interest to see the FED dismantled.

Submitted by libbyliberal on

about for some perspective on the Fed and its horrors, I realized I was visiting a lot of non-progressive maybe blogs but nodding my head at much of the commentary about restoring the Constitution to pre-1913 revisionism re the banking system. Awed at the following of Ron Paul on this stuff, too, though I know some of his other stances are alarming.

We are all getting screwed by the banks and the red v. blue hype is preventing that bonding. We need to do it. Populism!!!

Submitted by libbyliberal on

But it wasn't always that way. In 1934, Congress revised the Federal Reserve Act to allow it to "make credit available for the purpose of supplying working capital to established industrial and commercial businesses." But this was repealed in 1958. The Bank of North Dakota (BND) is the only state bank left and it continues in the tradition of that 1934 revision of the Federal Reserve Act. It takes in state revenues and then makes low interest loans to businesses, farms, and students. With the interest it makes, it circulates the money back into the state. It is similar to the highly successful colonial bank in Pennsylvania. The interest there was used to build roads, bridges, help farmers, build schools, and other important needs of the colony. It worked great until the British Bankers had Parliament declare such colonial banks illegal.

Congress is dead set on screwing the states probably because its bankster masters want to keep milking the states and cities. So it won't revisit the 1934 revision which would force the Fed to extend low interest credit to the states. In light of that, Ellen Brown says

"the states could take matters into their own hands and set up their own state-owned banks based on the BND's model...rather than spending or selling off valuable public assets or hoarding them in massive rainy day funds made necessary by the lack of ready credit, states could leverage their assets into a very strong and abundant local credit system.."

Sounds like a good plan. Would any state senator takes this up or should we work on a ballot initiative?

Submitted by Nancy Van Ness on

Not only do I not think Kucinich has gone too far, but I think a better plan is really to boldly look at the system in the US and realize that it needs to be completely replaced. If there were the courage and will to do that, the future of this country might look less like a third world one. Until we really take stock and bold action, there is only fiddling with what continues not to work for most people.

Submitted by libbyliberal on

we do need a paradigm shift ... a profound one.

Submitted by libbyliberal on

we do need a paradigm shift ... a profound one.

beowulf's picture
Submitted by beowulf on

Thanks for mentioning Ellen Brown and her advocacy of North Dakota-style state banks. Any other state could follow ND's lead, in fact, those facing insolvency like California would be crazy not to (one roadblock is that many states have constitutional bans on lending the state's credit, so it might first require an initiative to change the state constitution). State banks are one reform that doesn't require Congress's approval, other reforms would require Congress to amend (or replace) the Federal Reserve Act.

Having reflected on it, one advantage of the Kucinich bill to replace the private banks with a public bank is that by taking a maximalist approach, it moves the Overton Window to the left and makes less dramatic reforms (like Mosler's plan to mend but not end private bank) the moderate "compromise" position.

In one respect, Kucinich doesn't go far enough. He leaves two new bodies, the Monetary Authority, the Emergency Board (which has a mixed executive/legislative mix which raises separation of powers issues) as well as the existing FDIC outside of the Dept of Treasury. All three (dropping Members of Congress from the Emergency Board) should be inside the Department. Frankly, independent boards simply dilute responsibility, by putting the monetary power inside a cabinet department (whose leadership serves at the pleasure of the President), Congress and the people will have one person to hold accountable for monetary policy; like the Constitution says, "The executive power shall be vested in a President of the United States of America".

Another amendment to Kucinich's bill I'd make would be to merge it with Brown's State Bank proposal, as a way to decentralize power to the states and preserve local banks. North Dakota uses BND as a "bank to banks", for decades it had only one branch (though they might have added a few recently). Besides allowing the state government to easily finance its own credit requirement, it functioned as a "mini Federal Reserve" for ND community banks, helping them maintain liquidity and partnering on deals in order to keep rates low. This would necessarily require that each bank could only operate in a single state (which was federal law prior to 1994, IIRC) and would allow different states to establish different lending priorities and programs instead of a single national bank that "fly over states would. no doubt, accuse of favoring large coastal states.

Of course all that makes Mosler's plan look like a minor reform by comparison. So ultimately I'd push for Kucinich's bank for the same reason pushing for a VA hospital for all would make sense for a Medicare for all supporter-- if you want the Moon, you start by asking for the Sun. :o)

Submitted by libbyliberal on

sorry I didn't catch this earlier. this stuff is all so new to me I need to digest.

yes, the maximalist choice is also "banking" on an honorable government to be protective of the citizenry.