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Socialism’s Ultimate Tool

51 | By Shah Gilani

If you think for one second that the Federal Reserve System is a Godsend that backstops America’s banks and our economy in times of trouble, you’d be right for that one second.

But if you take any time to learn how the Fed really works and in whose interest they operate, you’d make yourself sick for a long, long time.

The truth about the Federal Reserve is that it’s a dangerous, insidious socialist tool.

Rather than allowing free markets to function as a “clearing mechanism” that rewards success and punishes failure, the Fed fosters underdevelopment of third-world nations, props up corrupt governments, protects the greedy, self-serving banking constituency it serves, and by design promotes socialism to further its mandate to enrich its masters.

I’m sick of the Fed and their control over the U.S. Congress, the American economy, and the world order.

It’s about time the American public revolted against the Fed and our pandering Congressmen who pimp for it, abrogated their Constitutional duties to it, and get rich off it, all the while pretending they control it and it’s some kind of Constitutional safeguard.

You see, the Fed was the brainchild of a bunch of the world’s most powerful bankers and a few greedy U.S. Congressmen who were not surprisingly in the employ of banker backers.

The history of the Fed is a fascinating story about American politics and power-broking bankers. The undisputed truth about the creation and mandate of the Federal Reserve System is laid bare, beautifully I might add, in G. Edward Griffin’s “The Creature from Jekyll Island.”

I thought I knew a lot about the Fed, and it turns out I do. But there is so much more that I didn’t know, and it’s all laid out in the book, with all the accompanying references and proof.

It chilled me to my very core.

I’d been meaning to read the book for at least ten years, but somehow never got around to it. It was you, several of you, who read this blog who kept telling me to read it. Well, I did, and there’s a part of me that’s sorry I did. Nonetheless, I thank you; you know who you are, for keeping on me to read it cover to cover. I owe you.

If the assignation of JFK was the end of the age of innocence, the end of Camelot, reading “The Creature from Jekyll Island” will end all your illusions about banks and governments, forever.

Please read the book and tell everyone you know to read it, and make sure they do.

If you want to know how banks control Congress, read the book. If you want to know how banks control you, read the book. If you want to know how banks use the Fed to protect themselves, buy legislators, finance dictators, subjugate foreign countries and make their banker masters filthy rich in the process, read the book. If you want to know who killed JFK, read the book.

Once you’ve read the book, nothing will ever be as it was. You will know things you never dreamed were happening. You will understand why things are the way they are. And, most importantly, you will be able to see into the future because what’s happening in the world is planned. It’s part of a plan to make money. It’s always about money

Forget power. Power is nothing but a means to acquire money. Money is the prime motivator.

You know it. You see it every day. How else is it possible that a lot of (literally) criminals get into Congress with no money, but have to spend millions to get elected (guess where it comes from?) and come out of the other side multimillionaires?

You and I would have a very hard time turning about $175,000 a year after as little as four years into about $7.5 million, about the average net worth of Congressmen and women when they stop serving the public.

I just want to vomit.

Anyway, I’m bringing all this up because I just read the FDIC’s Quarterly Banking Profile.

And wouldn’t you know it, the banks are flush again. Gee, I wonder how that happened?

Seems like just yesterday they were all insolvent.

Oh, they were. That is until the Fed propped them up, coddled them, protected them and liquefied them with manna from heaven. That would be printed money and quantitative easing par infinitum.

How does the Fed promote socialism, why does it promote socialism? Think about it.

What’s so destructive about the Fed is that it can only serve its banker masters, who readily lend to umpteen insolvent governments (including our own) and get paid back in spades one way or another, if they lend so much that the only way to ever get paid back is to socialize countries so their collective debt is the responsibility of all its citizens.

Socialism is a slave-making system. There are no physical chains, but there sure are economic chains. Ask the Greeks. Better yet, look in the mirror and ask our President and Congress, ask them about the Fed, ask them…WTF?

I’ll be writing about the Banking Quarterly Profile, what’s in it, and what it really means in MoneyMorning on Tuesday. You won’t want to miss it.

Next week, I’ll have more on exactly what the Fed does, and what makes them so insidious. So stay tuned.

51 Responses to Socialism’s Ultimate Tool

  1. Frank B. says:

    Hi Shah, I’ll pick up the book and read it this week-end so I’ll be ready for your article on Tuesday.

    Thanks,
    FB

  2. Maurice says:

    on one side you say that they promote socialism but on the other side you say they enrich their masters, the banks.
    What is it? Socialists wouldn’t serve banks
    Makes no sense to me

  3. Jeff Pluim says:

    I read that book years ago but it didn’t really tell me anything that I didn’t already know. I’ve written you before, suggesting that the head of the Federal Reserve should be an elected position. The FedHead, should have to answer to the general public. An election every 4 years or so would solve a lot of issues surrounding the abuse of that position. Heck, even every 3 years instead of 4 years. That way the FedHead would be even more accountble to the public.

    • theRedXpress says:

      Jeff,

      So you think that we have to endorse another money-wasting election “campaign” to select the Fed-head? Don;t we have enough waste?
      How much that head is accountable today? Who is accountable? Those crooks turned the tables so we, the people are accountable to them! They forgot who is the Master, who is the servant….. Or rather, they made us to forget.
      If you still believe in fairy tales, please explain to me why someone, who steals a “thing” (any thing) from the store is arrested, penalized and often put behind bars. But when “important” bankers steal by truck-loads, they are allowed to buy their way out, without even admitting any wrongdoing! And then what? CONTINUE as they please. WOW! That is an accountability!

  4. cory says:

    shah, read the book many years ago. it put other books in better contex. surprising the old john birch society was beating the drum about the fed long befor the creature made the print, it is the most dangerous entity on the planet. tks for spreding the word. keep your powder dry. and watch your six.

  5. peter says:

    Why do you call everything socialism that you don’t like? What you are describing here is not socialism, it is clever capitalism. The concept of the free market is only a (free) marketing gimmick. As you write in your column, it is all about the money. About how to get it as effectively and smart as possible. And that is nothing else than raw capitalism. Sorry about that…

  6. Faith says:

    Great article! Thanks for writing this information. Personally have wondered about the Federal Reserve Bank for years; but your article sheds supportive information about them. Am anxious to read your next article this coming Tuesday. Will also start reading the book you mentioned in your article today called “The Creature From Jekyll Island”.

  7. H. Craig Bradley says:

    AMERICA’S PUPPETEERS

    Shah, I would not be as concerned about the FED and their “socialization” schemes as I would be about President Obama and some of the people behind him (same people??).

    George Soros is a well known patron and insider with the Obama Family. He donated millions of dollars to the Obama campaign directly and indirectly through moveon.org. Naturally, he expects something in return. Actually, his given name in Hungary (homeland) was George Swartz. He was born a Jew but quickly disavowded his religion and changed his name to Soros so he could make money, even at “sweet 16″.

    The Nazis occupied Hungary beginning in June 1944. Immediately a young George Soros began turning in his fellow Jews to Lt. Col. Otto Skorzeny (Waffen SS) for a cash bounty. After the Red Army defeated Germany and occupied Hungary, Comrade George Soros (Bolshevik) was given the best possible education by his Russian sponsors. The Russians also gave him all the money they looted from the Hungarian people from 1945-1956 to invest. The American press reported at the time that the money was “invested with Western Banks”. We have always been dupes in this regard.

    George Soros wants to change America. He wants to restructure America (take individual liberty), further empower the Federal government, and reduce your means of living and lifestyle. Now he has someone in the White House to carry out his vision for America. Its as much George Soro’s vision as it is President Obama’s . We are still the dupes to the end. So, for now, I would not be quite as concerned about the FED as I would our own government and its puppeteers.

    • H. Craig Bradley says:

      A “ONE-WORLD” GOVERNMENT vs. CHINA

      Jewish Banker Paul Warburg was one of the primary founders of the Federal Reserve Bank. He plainly stated their goal: ” We intend to establish a one world government by choice or by force”.

      Today, we have a somewhat different world. China is on the ascendency while the U.S. is in rapid financial and social decline. Our debts are quickly overcoming us. In contrast, today’s China is debt free and has several trillion dollars in foreign cash reserves. They are growing in real terms, we are not.

      Most importantly, China is a “National Socialist state with firm racially pure foundations and 1.6 Billion people”. So, President George H. Bush’s so-called “new world (global) order” will have a serious problem with the Chinese. Accordingly, it won’t be a one world anything- even if they finish America off
      ( collapse it). In any event, they want us out of the way.

  8. Paul Dueweke says:

    You are right about socialism. And there is another side to it also. Here is a section of my Amazon Review of “This Bloodless Liberty” that discusses totalitarianism.

    Progressivism enables totalitarianism, though it is usually unintended, since totalitarianism is contrary to liberal principles. This enabling proceeds in stages. Totalitarianism comprises three main forces in much of the world—socialism, fascism, and Islam. In the U.S.A., Islam is still a bit player; but in Europe, Africa, and Asia its strength varies from major to dominant.

    To appreciate the strength of socialism and fascism in America, all one needs to do is to consider recent big-money government programs. These include the various bailouts, the TARP, the Fed’s quantitative easing, the stimulus, and health care. Also consider all the Big Money luminaries Obama has packed his cabinet with. We must also level the same criticism at other recent “progressive” presidents—Reagan, Bush, Clinton, and Bush. And Reagan was not the first Big Government progressive. Just look at the last century of government-growing programs: the Federal Reserve System, Income Tax, Social Security, Medicare, Vietnam, Department of Energy, Department of Education, NAFTA, Iraq and Afghanistan, and Department of Homeland Security.

    These progressive politicians have dedicated themselves to growing Government. But Big Government is not the end, it is merely the means to the real end—easy profits for Big Business via contracts, subsidies, favorable legislation, repression of small business, and “discipline” of those pesky free markets.

    What sectors benefit from Big Government? The Intellectual Elite, the Infotainment Media, Big Money, and Islam—and all for different but similar reasons. There is no conspiracy. There is no plot to socialize America. These sectors of our society simply see Big Government as being able to deliver the goods, i.e., to enhance easy profits for the corporations, easy living for the intellectuals, and the structure and general acceptance of authoritarianism for Islam. The other common characteristic of these sectors is that they are dominated by progressives.

    For the Intellectual Elite—ranging from our institutions, think tanks, and academia down through elementary school teachers—it is the nobility against the commoners. The elitists compete with each other to see who can be the most “progressive” and thus the most “intellectual”. These intellectual merit badges spawn status and money. The Infotainment Media sees the pomp, spectacle, and raw emotional power of Big Government as a concentrated and user-friendly source of prepared media products that they can then turn around and market as “news” without much concern for truth and balance. Hype propels the media. Big Money sees Big Government as a way to impose the force of favorable laws on otherwise free markets. It is the same rationale that “Corporate America” has used for over a century to pressure American foreign policy to install business-friendly dictators in countries whose resources they want to more-profitably exploit. And then there is Islam, lurking in America’s background and Europe’s, Africa’s, and Asia’s foreground, encouraging totalitarianism, which they plan to further corrupt with sharia law, which is their own hybridized brand of totalitarianism, converting society to theocracy by bribing with oil and buying with oil-generated monetary reserves.

    These four sectors—the Intellectual Elite, the Infotainment Media, Big Money, and Islam—all see an accomplice in Big Government and are working more-or-less independently toward those ends. And progressivism provides the credible intellectual cover for what might otherwise be seen rationally as power grabs. Combined, they are a fearsome adversary for the common man, who is intoxicated by the magnetism of government-subsidized, cheap, and abundant consumer products and services.

    Obama and his predecessors, and all other progressives in our society, are rented and exploited by these forces. They welcome the intrusion of Government into the constitutionally well-defined sphere of the rights of We The People and the States. They trust Government and its hired think tanks and contractors.

    Sadly, the common man, who has a long tradition of conservative constitutional principles, is asleep. He has been slowly anesthetized by easy living and decades of progressive lies about the evolution of the “living constitution”. But a “living” constitution is no constitution at all since it can be altered to feed government growth at the stroke of a politician’s pen rather than using the intentionally arduous amendment process. The common man does not see the steady progression toward totalitarianism but sees, briefly between naps, a Supreme Court, a Congress, and a President physically enriching America with a cornucopia of benefits for every American. Meanwhile the vast majority of clever progressives don’t even know they are just pawns—enablers of Big Government and ultimately totalitarianism.

  9. Vincent Celli says:

    Hi: I believe I was one of those who asked you to read it. If anyone tried to write a novel using the book for a template any publishing house would never accept it. Unfortunately it is factual and damingly so.
    It has been a lonely endeavor trying to get others to accept the information in the book. It is horribly depressing. I also feel that it is most important that the general public educates itself about what the Fed is doing. I believe reforming the Fed is the linchpin to reforming our government.
    Thank you so much for your comments. At least I feel a little less lonely and more hopeful. VFC

  10. Trig Gamble says:

    Having worked in Africa on projects where the US government (and others) is involved financially. It is more sinister and corrupt than what you can think or imagine. The pay-offs to despots to get in control or stay in control so that the “one world” mind set evolves is off the charts. Who gets killed or how many get killed to achieve the wealth needed to wield more and more power is their agenda. But it is not just the West and the Euro-group it is the Russians, Chinese (in a big way), and to some extent India, Japan, and the Australians. Some of the disadvantaged blacks in South Africa have become insanely wealthy when they came to power as well as President Mugabe (Zimbabwe). You should see Mugabe’s palace….it does not have an equal even in some of the Middle East oil rich nations.

  11. Dennis Harford says:

    I was given the book too. It also took me 10 years to read it. What is amazing is that the propheses layed out in the book all came to be. The banker’s master plan continues. The ultimate objective is to make surfs of us all.
    The only thing slowing the process is that the perpetrators die about every 75 years.
    God help us.

  12. Fred Schlageter says:

    the biggest problem is wall street and goverment know we know could give a rats rear about it ass they control the military and the justice dept and thats all they need.

  13. Alan Hunt says:

    I have no doubt that everything you say is true. Marshal Mc|Luhan once claimed that the artists of the world know what is really happening 50 years before anyone else. Everything that you say here just stands as evidence for everything Robert Ludlum said in just about every novel he wrote. My only quibble is with the use of the word ‘socialism’, surely the most misused word in America. You cannot work for “banker masters” and be socialist… but you certainly can do it and be a capitalist!

  14. Bernard. B says:

    Take the Population as a whole, who really cares? As a whole we are dumber than a box of rocks. In the book you understand how the bankers really control us, how they keep us in debt. You understand how when the big banks went belly up betting our deposits on risky derivatives, they were bailed out by the FED. After all that is job 1 for the FED, take care of big banks. The FED lends money to the big banks for nothing. They invest the money in bonds, they collect the interest. They do this big enough and long enough, bingo, they are recapitalized. And since their leadership was so smart to save their ass, they continue to collect their big bonuses. Who paid the interest on those bonds? Hello sucker. Who got to spend the money that bought the bonds? Why your loyal congresspersons, that’s who. Hello sucker. And the FED loaned your money to banks overseas to do the same thing. Hello sucker. And your loyal congress person gets to spend the money buying votes and writing laws full of loopholes for their special interests. Their job 1 is taking care of themselves first. So they go along with the FED and fill us full of BS with their congressional committees questioning the FED. Feel a hello sucker coming on again? It was such a good deal for all the big money lenders like GE and GMAC that they quickly “became” banks so they could copy the bailout scheme. Now here it is a definite, hello sucker.

  15. D.Harrington says:

    Tea Partier, Occupier, whatever, the Federal Reserve is the unmitigated enemy of the people. Your article is dead-on target and it is such a tragedy that only “one out of a million” really make any effort to understand the depth of it malevolence.

  16. Ron says:

    This is hard to put in only a few sentences but the Fed is currently imposing socialism on us with it’s policy of essentially 0% interest rates. The USSR tried a completely socialist/communist system for 60 years and it failed miserably because they didn’t recognize interest on money or the time value of money. Not only was this mathematically incorrect it was morally incorrect and led to the destruction of their country. The time value of money and the real cost of money cannot simply be ignored. It’s like trying to ignore gravity, works fine until you hit the sidewalk. We can see our future by studying the failed communist/socialist system; widespread corruption, cronyism, government corruption and organized crime providing what the government dishonestly cannot.

  17. Kevin Donnelly says:

    Who would have thought
    that from within corruptions grow
    As can destroy the spirit of our nation
    When Constitutionally we have brought
    checks and balances for all we know
    against collusion and depredation
    With our shield of Constitution, armed with our Bill of Rights
    we are ready for this row
    and will win out again, because we have that might.

  18. Randy says:

    Oh the things that are possible in a REVOLUTION. Abolish the Fed. Replace our government with one by and for the people.

  19. tom says:

    In this quarter you are preaching to the choir and those who are evenly modestly well read have been aware of this scenario for decades. I appreciate your attempt to create awareness, but without a solution we are engaged in just a word exercise. Time is of the essence and there seems to be a consensus to eliminate the fed by those who wish to allow free markets to control our destiny, but we come back to the real question which is “how do you dismantle or eliminate the FED”. Pointing fingers is great only if you have a solution. What are your ideas???

  20. Don Fishgrab says:

    Whether one believes the Bible prediction of a one world government or not, there is little doubt that the world is moving toward such a system, and that socialism is a major tool for attaining that goal. The establishment of such organizations as the Federal Reserve indicate it is being done deliberately, and is not a naturally occurring process.

  21. Michael says:

    I’ve wondered from many years why “In God We Trust” is still on the US Bank notes? Seems preposterous really, and seriously hypocritical, but that is the way of deception – American Historical Global Policy…
    If the Fed were upfront and not in the Financial Monopoly business, a small change to help “The Buyer Beware” would be inserted after the Slogan. It would read “In God We Trust, ALL others will pay eternally with Interest”.!

  22. greg says:

    Way to go Shah!
    great column about a seminal book. I read it through last year. It changed my whole worldview! Nothing about our financial system is as it seems…

  23. Marcel says:

    Shah:
    Welcome to the real world.. it is nothing like what propaganda that is disked out on us.. thanks for recognizing it in writting.. great article.. hope you will have more to add..
    The big boys have figured out and controled the money for the last 300 yrs.. the wars and all the other activity.. are their creation.. the people are only there to be used.. as for me.. have understood that many years back.. have worked it for me.. I don’t jump when the boys say jump.. and they do like person such as that.. I can show pictures of what they can do..
    The best to you, Shah

  24. eric taylor says:

    Our Federal Reserve is being poorly managed! In Iceland, they have thrown the poorly managed banks into receivership (like we once did with the S&L’s), put their management criminals in jail, and they are now recovering their economy, and currency nicely! On top of that note, they are going 100% into renewable energy, with Germany targeting 80-100% renewable energy in their future as well. Wish we could join them, but the Crony Capitalism her in the U.S.A. is too hard to reform!…….eric wynne taylor

  25. ray says:

    About 25 years ago, I read an article in a newspaper about how the IMF and World Bank financially enslave 3rd world/developing countries. I read Jekyll early this year. Really ticked off at how the U.S. is going down the tubes – Obama/Dems are steering the USS Titanic to the nearest Marxist buoy – and the voters just can’t wait for the next lie to begin clapping.

    Getting the word out is difficult – I have yet to converse with a Democrat that would let even the details on this subject influence their liberal views.

  26. BP says:

    I am going to read that book and I am going to share this article with some of my peers who will likely be intrigued. Thank you.

  27. michael trupei says:

    Shah, the “Creature of Jekyll Island” should be entitled the: “Fraud of Jekyll Island” which it is ever since December 23rd, 1913. This book together with the “Tragedy and Hope” , the latter was by by Professor Caroll Quigley (Professor of our conteporary history at Georgetown, inter alia, should be the required reading for every Tenth Amendment Americans. For not being informed about the history, this is a part of the reason, why the country has problems – the people seems to me just don’t care, thereby allowing the ruling class the free hand or otherwise by design to keep the wards of the courts at bay.

  28. Doris Kelsey says:

    If your readers would rather watch what the Fed is rather than read about it, they can go to “zeitgeist” on youtube.

  29. Chicken Little says:

    More currency chasing fewer goods results in inflation.

    Inflation is a regressive tax which effects everyone.

    Hyperinflation destroys civilizations. Get ready!

  30. Kevin Williams says:

    Yousay the banks are flush with cash but what about their derivative exposure? Deutsche bank just announced $12B in unrealized losses. Are there more unrealized losses on the books of US banks? Prophesy.org says there are ….

  31. Edouard D'Orange says:

    I’m staying tuned. I really enjoy reading your columns. If I was President, I would nominate and appoint you to clean up the financial and fiscal system messes.

  32. Dumblonde says:

    Hi,

    You will no doubt quickly realise that I am writing from Europe – Ireland to be precise – when I say that I am rather confused about your use of the word socialism. Now please don’t misunderstand, as a country that has had a veritable sunami of ‘socialised’ debt laid out its citizen’s doorsteps, I am certainly not defending this practice. In fact its enough to leave you foaming at the mouth.

    No, my confusion is about how the misuse of capitalism by a relatively small number of people to protect themselves from their own speculative losses by foisting that debt back (or socialising) their bad decisions onto ordinary people qualifies as an aspect of the form of political and social organisation known generally as socialism. If the debt did not stem from socialist practices in the first place, then why should it be labelled as a socialist practice.

    I appreciate that the socialism is approached rather differently on both continents, so I would appreciate a better understanding of where you are coming from when you take this view.

    Regards.

  33. Bob R. says:

    Shah,
    If in fact this is what you really believe about the Fed, banks, Congress, etc. then you definitely are someone to be honored! My concern is that TPTB won’t put up with this for long. Can’t have the sheeple ‘roused from their slumber. Please look out for yourself. We don’t have enough Truth Tellers in the world.

  34. Bruce says:

    Hi Shaw,

    I am very happy that you found, and particularly that you are recommending the book, “The Creature from Jekyll Island” to your readers. When I first read that book I also felt it was the clearest expose on the financial problems of this country that I had ever come across. Another book you may find just as enlightening (if much shorter) is, “Crisis by Design”. It covers similar ground, but is focused on the recent financial crisis and does a brilliant job of uncovering the true machinations that have landed us in this current mess. The only reason this stuff persists is that not enough people understand what is really going on and who is benefitting by ripping off the rest of us. Kudos to you for standing up and spreading some truth around.

    Bruce

  35. Ed the Grocer says:

    Whoa! Whoa! Whoa! Jeez Shah, next thing you know, you will be watching RT and Prison Planet…and reading crazy financial blogs at three AM….Sitting in the corner staring at the floor …sipping some Cuban rum …and, and, and,

  36. Tom Hegarty says:

    I didn’t read it, I watched his video on U. Tube.
    Blew my socks off !
    Still in recovery, this applies 98% to the Bank of England and others of course !

    Socialism or compassion ?

    As an outsider looking in, I find it difficult to understand why those of “Gods’ own country” don’t want to help those whose situation is worse than there own. (No body likes scroungers but there is a difference between genuine need and scrounging.) Is there no compassion in the United States ?
    Is just me, me , me, now then ?

  37. Kevin Beck says:

    Another issue about the damage that Socialism causes is that according to Pew Research, more college-age Americans view Socialism as something the United States should be aiming for; they view it as a better system than Capitalism. Yet these are the same people that made up most of the Occupy movement!

    Do twenty-somethings actually think anymore? And if they do, what do they think with? Do they know what they’re asking for, and that it’s almost here already?

    Let’s line this up: We have a group of young dolts supporting socialism, yet they are ranting against the Fed socializing the failures of the banks.

    You summed it up very well, when you stated that socialism just results in a claim on the people that are subjugated to it.

    My version is, Socialism is not the equal spreading of the wealth; instead, it’s the equal spreading of misery.

  38. Owen K. says:

    I have read “The Creature From Jekyll Island.” I agree completely. This book is more telling than any I have read. FYI: One organization that has problems with the information in this book is GATA. I sent several emails back and forth with GATA arguing some of the very points made in this book. However, it fell on deaf ears. GATA seems to be of the opinion that Congress can bring the FED under control. However, Congress happens to be the entity that helped create the FED in the first place. Strange. But, back to my original point, Shah is absolutely correct. One quote that bears repeating from Baron Von Rothschild: Give me control of a nations currency and I care not what laws they make.”

  39. Ed the Grocer says:

    I’m still in business because I try to let the market tell me what to do. I sell what the customer wants, I am careful with risk, and never give anything away to sway the market. In other words I place a value on money. ( I’m not selling cabbages, I’m here to make money. ) When the Fed places nearly zero value on risk money bad things happen. We lose the simple understanding of why we place our money in a mattress or in the market.

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