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A scathing look at how the Federal Reserve steals the wealth of American's through a process of inflation. Written in terms that anyone can understand. A must read for every American.


The Fed

Den of Thieves

Free Report

Den of ThievesHow the Federal Reserve Steals the Wealth of American Citizens Through a Process of Inflation By Brett Buchanan May 13, 2009

First Released: May 13, 2009 Last Revised: May 13, 2009 Contact Information: Web-Site; Contact Information: E-Mail;

Introduction If you are reading this report I can safely assume you have some interest in learning more about this economic crisis and more importantly how it is we will be affected by it. My own reasons for writing this report are varied. If I were to narrow it down to the single most important reason for investing the energy to condense this complex subject into a concise valuable resource I would have to say it is my desire to share with people in plain English what I know to be the truth. What I have come to understand is that as this catastrophe unfolded there was always a common denominator behind every headline. Like a thread weaving its way into every swatch of fabric that made up this crisis that thread was the Federal Reserve and its needle was the very money on which our entire economy is based. Our money, our beloved US dollar in the hands of the central bank that issues it is in fact the original weapon of mass destruction. When in the hands of unscrupulous bankers our money can render entire populations destitute. It can be used to transfer wealth from one economic class to another, from savers to borrowers, from foreign countries to our own citizens. It can even be used to steal property. The destructive nature of our money is on the one hand so difficult to grasp when clouded by the static of mainstream misrepresentation and misinterpretation, yet so simple to understand in the end that the mind is repelled upon reaching that point of knowing the truth. The mind stops dead in its tracks and in a moment of absolute clarity the disbelieving mind says, No, this cant be. Have we really allowed this to go on? I reached such a point in my life. That moment at which I understood that holding money in my pocket or on deposit in my bank meant that I owed interest to bankers, and that my wealth could be taken from me without so much as a warrant or the permission of my agreement. Take a moment to wrap your mind around the following words. Holding money means you owe interest to private bankers and they can and do steal your wealth without your permission. Bankers do not collect their interest from you directly but rather indirectly through the Internal Revenue Service. These interest charges are paid to the bankers in such a way that not one man in a million understands their scheme. And most egregiously the central bank that controls all issuance of our currency can and does impose hidden taxes on you far beyond what the IRS ever collects from your paycheck. The Fed does it in such a way that we believe their policies are somehow brilliant, that with all their Ivy League degrees these men must know more than we do about money. They must

know how to save our fragile economy from itself through the infinite mystery that is monetary policy. I am here to tell you these men of the Fed and the US Treasury are no smarter than a single one of us. Their Harvard degrees mean only that they passed indoctrination into their money club, nothing more. Their brilliance is all a faade. It is all a lie. And I will now prove it. Suggested Reading Atlas Shrugged by Ayn Rand (Cliff Notes) Understanding Money Some basics What Is Money? Money is anything that is generally accepted as payment for goods or services or for the repayment of debts. Shells have been used as money, as have cattle, stones, precious metals, and even paper has been used as money ironically, paper still is. All modern money is fiat money, meaning that it has no intrinsic value other than an implied value as bestowed on it by its creator in the case of the United States that creator is the Federal Reserve. Fiat money is backed by nothing but more fiat money. It is not backed by gold. It is not backed by beaver-skins. It is however propped up by debt, a concept of which we will explore later in this report. A Brief History of Money Money was born in the cradle of civilization in Sumer, southern Iraq in the 6th millennium BC. Sumerians used commodity money wherein the value of the money was the raw material itself. Commodity money is unique in that the supply of money can expand only to the extent that the raw material can be had. Gold is perhaps the most understandable of commodity monies as the supply of money is limited to the amount of gold that can be mined from the ground. Almost from the beginning of civilization the issuance of money has fallen under the control of governments or some central authority. We will come back to this statement later but for now I want you to consider these words again money has always been under the control of governments or some central authority. Centralized monetary planning is one of the primary tenets of Marxist Socialism or more specifically, state socialism or state communism.

Centralized monetary planning runs counterintuitive to even the most basic tenets of free market capitalism. Centralized monetary planning, especially in control of private hands as in the case of the Federal Reserve System, creates a class division defined by those financial institutions included in the supply chain of money versus those at the consumption end, or more succinctly of capitalists versus the capitalized. Money has gone through almost immeasurable incarnations throughout history. My focus here is not to give you an epic blow-by-blow regarding every phase of money development over time but rather to apply some simple logic and expose why money is what it is today. For a more in depth look at the development of money throughout history click on the following link. It is an astounding insight into how we came to this place in history. Suggested DVD - The Ascent of Money How does modern money come into existence and how does money affect prices? Here we will explore the process by which the Fed controls the money supply. The overall supply of money has a direct (but lagging) impact on general prices. This section is not meant to be a technical outline of Fed operations but rather an overview providing enough information so as to understand how the Feds manipulation of the money supply affects prices and ultimately your wealth. Below are two examples of how the supply of money relates to prices. In this first example lets assume that all things are constant; the supply of goods, the supply of labor, demand for goods, the supply of raw materials, the general population itself, and the supply of money in circulation. Imagine them all to be in fixed quantities in a perfect harmonious world of equilibrium. In this scenario there would never be a need to add or subtract any money from overall supply because the system is in perfect balance. Under such a reality prices would never change. Now assume those same factors; supply, labor, demand, materials, and population were all in flux. Some rising at times, others falling, basically a fluid situation wherein each factor could at times be working against the other factors and at times in sync a truly chaotic market wherein all things were unpredictable. Now here is the strangest thing about money this is a reality you must understand before we continue. It is perhaps the most important concept to grasp regarding money. The reality is that even with

all these things in flux the supply of money would never have to change. As a matter of fact the supply of money remaining fixed would act as the great equalizer to bring things that had fallen out of sync back into harmony. Prices would change, but never to the extent that any one sector of the economy could draw so much money away from the other sectors so as to drive selective prices up to intolerable levels. In other words, with only so much money to go around price fluctuations would be restrained by other money requirements in the economy there would still exist balance. A fixed amount of money in a chaotic environment creates equilibrium. The flipside to the concept above is that when an over-supply of money is injected into the economy price distortion becomes the norm. One section of the economy can easily draw a disproportionate amount of money from the others because there is now too much money to go around. The money supply is out of equilibrium and has difficulty balancing itself. This is the perpetual state in which we find ourselves today. Like our economy, for a ship caught in a raging storm there would exist the perfect amount of ballast to keep the ship upright and afloat. Add too much ballast and the ship will list to one side drawing a disproportionate amount of ballast from the other side until eventually the ship capsizes, rolls over, and sinks to the bottom. An over-supply of money in an economy is like a ship overloaded with ballast. Sadly, the Fed would like us to believe that in a state of chaos where the basic driving forces of economies; supply, labor, demand, and population are in a continuous state of flux that they, the Federal Reserve, in their infinite wisdom can somehow manipulate the supply of money to balance the chaos. This is utter madness. And the Fed knows it. Manipulating the supply side of money only adds to the misallocation of resources as newly created money attempts to settle amidst all the chaos. Hence the phenomenon of asset bubbles. All asset bubbles are Fed created. Below is a graph from the Case/Schiller Real Estate Index. A spike in asset prices, or prices in general, as seen to the right only occurs in the wake of three influences; 1) war or national emergency - crisis, 2) extreme monetary mismanagement by central banks - incompetence, or 3) by design - fraud. Perhaps the most prescient bo