Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
Dear Treasury Secretary Geithner:
I noticed you recently told the Japanese press that you intended to maintain a strong dollar, and that the Obama administration would bring the U.S. fiscal deficit back to a "sustainable balance."
Tell me, don't you feel your nose extending like Pinocchio's when you tell these fibs to innocent Asians?
The dollar is not strong. In fact, it's sinking to record levels of weakness, and it's going to stay that way, for three reasons:
LOL
37 cents of every taxed dollar goes to the Department of Aggression…
An Eye-opener… A lesson in history,
FOOD FOR (deep) THOUGHT: (VVIP voices… WARNINGs & Premonitions from the distant PAST)
The American Revolution won for the American people political independence from Britain, but not financial freedom. Thomas Jefferson warned:
“If the American People ever allow the Banks (FEDS?) to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow around them will deprive the people of all property, until their children will wake up homeless on the continent their fathers occupied. The issuing moneys should be taken from the banks and restored to Congress and the people to whom it belongs.”
President Andrew Jackson warned the American people:
“The bold efforts the present bank has made to control the Government, the distress it has wantonly caused, are but premonitions of the fate which awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.”
The President was so infuriated by the bankers that he called them:
“You are a den of vipers. I intend to rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning.”
“This (Federal Reserve act) establishes the most gigantic trust on earth. When the President (Wilson) signs this bill, the invisible government of the monetary power will be legalized… the worst legislative crime of the age is perpetrated by this banking and currency bill.
From now on, depressions will be scientifically created.
“The financial system has been turned over to the Federal Reserved Board. That Board administers the finance system by authority of a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest profits from the use of other people’s money.” -Congressman Charles A. Lindbergh Sr.
“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve Systems have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.” – Senator Barry Goldwater
“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.
“Some people think the Federal Reserve Banks are the United States government’s institutions. They are NOT government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers.” – Congressman Louis T. McFadden, Chairman of the Committee on Banking & Currency (12 years) June 10, 1932.
“These 12 corporations together cover the whole country and Monopolize and use for Private Gain every Dollar of the Public currency.” – Mr. Crozier of Cincinatti, before Senate Banking & Currency Committee, 1913.
The status of the Federal Reserve as a PRIVATE Institution and NOT a Federal Agency was tested in Court. On April 17, 1982, the Court ruled:
“The regional Federal Reserve Banks are NOT government agencies, but are independent, privately owned and locally controlled corporations… that since the Federal Reserve System and its twelve branch banks are PRIVATE CORPORATIONS, the Federal Government could not be held liable.” (Lewis v U.S. 608F 2d 1239 (1982) 9th Circuit)
“The Fed enjoyed privileges extended to NO OTHER AGENCY in Washington – it raised its own revenue, drafted its own operating budget and submitted NEITHER to Congress for approval.” – (Secrets of the Temple: How the Federal Reserve Runs the Country), a book by William Greider.
“When you and I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check, there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, IT IS CREATING MONEY.” – Boston Federal Reserve Bank
President Woodrow Wilson signed into law the Federal Reserve Act 1913, but subsequently realized the folly of his action.
This is what he wrote:
“A great industrial nation is controlled by its system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world – no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.”
John Maynard Keynes who wrote in the “Consequence of Peace” :
“Should government refrain from regulation (taxation), the worthlessness of the money becomes apparent and the fraud can no longer be concealed.”
Senator John Danforth, in great shame, once said:
“I have never seen more Senators express discontent with their jobs… I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgiveable to our wonderful country. Deep down in our hearts, we know we have given our children a legacy of Bankruptcy. We have defrauded our country to get ourselves elected.”
-“Prof. Simpleton” comments:
(Defrauders?… they can just pay a fine and/or go to jail! TRAITORS to the country would be more appropriate… they should be EXECUTED!).
With all these billions and trillions in hand-outs for the so-called bail-outs and/or economic stimulus, makes one wonder if some of those left-overs on the table are actually being siphoned-off (right under our very noses under the table) by those "foxes-in-charge of the hen-house". [who couldn't resist the temptations, given the right opportunity?]
Ow come on!…These people (POLITICIANS/FEDS/BANKERS ETC.) are professionals and not dumbos, they can use all kinds of "legal" means to hoodwink us in the name of saving the economy (while lining-up their own pockets at the same time and scheming their scams to wipe-off some of the crumbs (crumbs? JUST 1% of USD 1Trillion = USD10 Billions!) and actually laughing all the way to their own Banks, enough to last them for 10 generations at least!
Even any idiot reading this would know that they are actually bailing out their own cronies in the Banking & Financial system. "Too Big To Fail" my FOOT!! These "geniuses" are actually saving themselves and then some! They are the ones behind this whole fiasco in the 1st. place and now they are trying to right their wrongs on their own terms, imagine that! Even the blind would know this Game. Talk about 3rd World corruption…it's happening right here in front of our very own eyes. WAKE UP AMERICA!
And eat your heart out Tax-payers!! 'coz to pay back the country's debts will take another … 10 generations? off course! That's how they're goin' to balance-off the accounts…with your future generations' tax money, if ever.
"Professor Simpleton"
I believe Tim is but one head of the same hydra (which is this current administration). The end game of which is power and control of the American economy and the American consumer. A growing federal dependency can all but guarantee a permenance for the democrat party. So Tim jawbones about a strong dollar all the while supporting a weak dollar stance. With the direction this country is heading under the Obama administration it should scare the hell out of ALL Americans. Is it any wonder why more American corporations are planning to go off shore?? MK
What USA do now, was same in Former Yugoslavia.Inflation and artificial money. Good life, high standard. Everybody knows how Yugoslavia ended. USA wake-up.
Mr. Geithner continues to be either disingenuous or disengaged from reality or both.
Excellent recommendations, but not likely to be adopted by the present Obama Administration. [They may feign adoption of some of these measures, but only in very minimalist ways to provide them with propaganda opportunities.] If you consider all they have done and are working feverishly to enact, their true agenda become apparent — fundamental change in the form of diminishing if not destroying the historical foundations of USA and replacing them with socialism and fascism as they seek and promote formation of a one-world government run by elitists like themselves. They seek total control over the lives of their subjects, and redistribution of existing wealth to buy votes rather than stimulating the creation of new wealth for the prosperity of all.
These changes you suggest sound excellent, if this administration would only listen to reason. They really need to do something soon. The job to job-seeker ratio has gone from a little over 1 job-seeker for every job to now over 6 job-seekers for for every job available in less than two years and I feel that the proposed policies of this administration are just keeping the trend moving forward.
While looking at the dollar position is getting weaker day by day. it seems that Mr.Geithner is living in fool's paradise. In the way the chinsese is trying to weak the dollar should be very much concern for obama administration.
Right now it is very difficult to come out from the present shadow which engulf the U.S Economy. Needs to take a realistic mesaure to counter the chineses onsault.
Hello,
I read your article with interest.
i think the world is coming together as one closely connected entity. If you look up from 10,000 miles high in the sky, you will see one tiny place where we live. So this little speck called USA has to learn from rest of the world to live within means. I do, so does billions of people, that is why they are able to export to USA. 45% of the people in USA are debt free. So who are we talikng about? About 150 million people.
USA must get out of the habit of creating artificial money.
Artificail money creates inflation.
Another point is government must not interfere with the economy. Let the market place decide which business should live and which should die.
I came from a Fifth world country called Sri Lanka. We need the American system to help people but the system is being misused. Don't you think couple of people at JP Morgan and Goldman Sacks should be in jail? or am I tampering with the establishment?
But then, " Freedom is not for people, neither do they want it, it is human nature to be bonded".
In USA people are free in a different sense, but they do want to be free. If they really want freedom they will not borrow money, if they do they will pay it off. The test of true freedom in the USA can be tested if we control the money supply. American people have bargianed their fundamental freedom for another form of freedom. I do not know what that freedom is, neither they do. Do you?
I believe that "future markets" are a gamble used for speculation !! Produce nothing !!! Only inflation of prices !!! Obama had to put an enourmous taxation on it !!! I didn't hear that one country bought even one barrel of petroleum at US$ 140.00 !!!
Pure gamble !!!
From far away (Italy) I'm having the impression that the US's authorities are "a bit embarassed" regarding concrete future. No problem to understand them in front of so many difficulties. But I'm convinced that, INTERNATIONALLY cooperating, they will succeed with patience and….PATIENCE.
Good luck for everybody.
Aided by Hollywood, the greatest propaganda mill ever, the US shouts that it is a democracy. It isn't. Technically, it – like Britain – is an electorally-alternating binary oligarchy. And the difference matters.
A pair of near-identical elites compete for power. You don't believe me? Try running for serious office while admitting significantly-divergent views. You need a party organisation to win – and neither will sponsor you. You need huge sums for your campaign – which you won't attract. (Incidentally, do you hallucinate that it's happenstance that these cost so very much?)
Your government, like ours in UK, is in the hands of the money-men. Why else were the banks 'rescued'?
I have no solution. And neither, I'm truly sorry to say, do you. Excellent as are your suggestions, they won't be adopted. Turkeys don't vote for Christmas nor, more accurately, do tigers become vegetarians.
Dear Martin,
Your open letter seems to be anwered by Congress ASAP (that was fast, ain't it?) LOL!
So what do you think ot this latest outcome?
LATEST news from Congress: 20/11/09….
Two buildings away, at a session of the Joint Economic Committee, Republicans escalated their attacks on Treasury Secretary Timothy F. Geithner, including a call for his resignation.
"Conservatives agree that as point person, you failed. Liberals are growing in that consensus as well," said Rep. Kevin Brady (R-Tex.). "For the sake of our jobs, will you step down from your post?"
Rep. Michael C. Burgess (R-Tex.) took a different tack. "I don't think that you should be fired," he told Geithner. "I thought you should have never been hired."
Even Sen. Charles E. Schumer (D-N.Y.), a friend of the administration, suggested that Geithner had been inconsistent in addressing China's practice of keeping its currency low against the dollar.
And Rep. Peter DeFazio (D-Ore.) said Wednesday on MSNBC that he thinks Geithner should step down, pointing to his handling of the aftermath of American International Group's meltdown.
Across Capitol Hill, senators signaled their opposition to rushing regulatory reform. While some Democrats voiced reservations about parts of the bill, Republicans went further, faulting Sen. Christopher J. Dodd (D-Conn.) for pushing ahead before the roots of the crisis were understood.
Federal Reserve under scrutiny
Perhaps most troubling for the administration was that one of the few measures to succeed Thursday was an amendment by Rep. Ron Paul (R-Tex.) that would subject the Federal Reserve to unprecedented scrutiny. The amendment, which won bipartisan support in the House Financial Services Committee despite the reservations of administration officials, would allow the Government Accountability Office to audit all of the Fed's operations, including its decisions on interest rates and its transactions with foreign central banks.
Paul and allies in both parties — more than 300 members of Congress have endorsed the measure — are looking to increase oversight of an institution they consider partly to blame for the financial crisis. Federal officials and many private economists worry that the amendment could make future central bank policymakers reluctant to take unpopular steps to prevent inflation or support the economy for fear of second-guessing by Congress and government auditors.
Martin, I just loved this part:
Rep. Michael C. Burgess (R-Tex.) took a different tack. “I don’t think that you should be fired,” he told Geithner. “I thought you should have never been hired.”
WoW!! Couldn't have been better said! (there's a rhyme to it too: "fired & hired")
Do you agree?
… and my own personal "dearest wish" of all is also coming true at last, after waiting for generations!
This I think, is the best X'mas present for the American people (gift in advance) and I'm quite sure it will open-up a whole lot of "other" Pandora Box of startling gifts in terms of eye-popping "revelations" that of course you Martin & I know existed all this while. I just hope USA is ready for this.
Thank God! The prayers of our forefathers of the past (above) are also being answered: "AUDIT & ACCOUNTABILITY FOR THE FEDS!!!!" AT LAST!! WHAT MORE CAN WE ASK FOR?:)
"an amendment by Rep. Ron Paul (R-Tex.) that would subject the Federal Reserve to unprecedented scrutiny. The amendment, which won bipartisan support in the House Financial Services Committee despite the reservations of administration officials, would allow the Government Accountability Office to audit all of the Fed’s operations, including its decisions on interest rates and its transactions with foreign central banks."
So sell US Dollars and buy Australian Dollars (Audies).
Just the interest on the national debt is unsustainable; since it is not being paid. The interest alone will double the national debt about every 7 years. This is geometric: 2, 4, 8, 16, 32, 64, 128, 256, 5012, 1024. So at the end of 70 years the debt will be 1000 times as large as today, even if the government did not run a trillion dollar deficit. So the crash will come sooner than 70 years.
What should be done (but won't be): Five men on the Supreme Court should uphold the Constitution where it says only the Government has the power to coin money. They should declare the Federal Reserve Notes not legal tender, and should order the Treasury to print United States Notes. (Yes, if you are old enough to remember, those were the ones with the red seals instead of green). This would relieve the need for the taxpayer to pay interest on Government bonds to the (private) Federal Reserve Bank and other central banks through out the world, including China.
The Government would still be free to inflate the currency by printing endless amount of paper money. So we need an amendment to the Constitution requiring the Congress to pass a balanced budget. It would need some teeth so:
A. All Congressmen would forfeit all pay and benefits during any period when a balanced budget had not been passed on time.
B. Last years budget would remain in effect until a new budget was passed.
C. If any Department exceeded its budget, the department head and all executives in the department would forfeit all pay and benefits until their budget was brought back into balance.
Nice post! I believe that "future markets" are a gamble used for speculation !! Produce nothing !!! Only inflation of prices !!! Obama had to put an enourmous taxation on it ! The American Revolution won for the American people political independence from Britain, but not financial freedom.