The Federal Reserve Becomes the ‘Buyer of Last Resort’

November 29, 2009 – While the debate continues whether inflation or deflation will be the dollar’s eventual fate, the Federal Reserve is pursuing a pernicious policy that is insidiously debasing the dollar.  This policy has generally been met with indifference, if it has even been noticed at all.

The inflation/deflation debate focuses only on the ‘quantity’ of dollars and completely fails to address an equally important monetary facet, the ‘quality’ of the dollar.  The Federal Reserve is debasing the dollar by purchasing inferior assets of poor quality.  These assets are mortgage-backed securities issued by federal agencies like the insolvent and for all practical purposes bankrupt, Fannie Mae.

These are assets neither the banks nor other investors want.  If there was a demand for these assets, the Federal Reserve would not need to buy them.  Instead of acting in its historical role as the ‘lender of last resort’, the Federal Reserve has on its own expanded its mandate to become the ‘buyer of last resort’.

By purchasing mortgage-backed securities, the Federal Reserve is debasing the dollar.

Read the full article and see this chart, click here.

27.11.2009 15:59

EFT banned Webmoney exchange their currency at currencies of a number of systems, including “Yandex.Money”, Moneymail, WebCreds and others. It is reported portal Infox.Ru.

His decision to Webmoney account for the safety of their clients. According to the company, “Yandex.Money and other systems do not provide proper identification identity of the owner of funds that could contribute to illegal or questionable transactions.

On most portals involved in the exchange of various electronic means Webmoney exchange for “Yandex.Money already banned. According Infox, can not change money on the site “Меняла.Ру and Roboxchange.com. And on Easychange in an attempt to exchange a message appears: “Exchange WM [in] Yandex has been suspended in accordance with changing conditions WMT “.

In “Yandex” refusal Webmoney does not comment. In turn, Webmoney to say that will look for a safe way of cooperation between the companies.

Electronic money emerged in connection with the development of the Internet and can pay for goods and services online. Their distinctive feature is that they exist only in electronic form. The main payment systems in Russia are just Webmoney, “Yandex.Money” and others.

WebMoney Transfer has become a Runet-2009 Award winner in the “Business and Finance” category!
Photos from the Ceremony will be uploaded soon.

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The only certain way to ensure the economic rescue of America, is to excite her people into positive, constructive action. To jazz them, by rapidly delivering on the promise that is America, a promise sometimes called “the good life”. The Sperry Plan will effectively pay America, to rescue America.

The Winged Lion Awards are in honour of the ‘Winged Lion’ – which is the historical symbol of usuryfree money. The Winged Lion Awards are presented to the winners from the nominated usuryfree creatives on behalf of the UsuryFree Network during the Annual UsuryFree Week scheduled from November 13th, until November 19th, each year.

Nominations are commonly accepted from local, national and international usuryfree creatives.

The winners of the Winged Lion Awards are honoured at a special event each year during the celebration of UsuryFree Week.

Nominations are currently open for the following 15 categories:

1. A community that has launched new paper notes of usuryfree community currency during the current year. This community must have done something unique for their launch of paper notes of usuryfree community currency. Samples of the paper notes and details of this unique activity must be submitted with the nomination.

2. An individual usuryfree creative who has authored a unique article about the design flaw of usury during the current year. A copy of the article must be submitted with the nomination.

3. An individual usuryfree creative who has authored a unique article about the usuryfree community currency movement during the current year. A copy of the article must be submitted with the nomination.

4. An individual usuryfree creative who has authored a noteworthy quote about usuryfree living during the current year. A copy of the quote must be submitted with the nomination.

5. A newspaper or magazine that has published at least one article about the usuryfree community currency movement during the current year. A copy of the newspaper or magazine containing the article must be submitted with the nomination.

6. An individual usuryfree creative who has traded for more than $1000.00 worth of any usuryfree community currency or any combination of two or more usuryfree community currencies during the current year. Proof of amount of trading must be submitted with the nomination.

7. An internet company that is facilitating the completion of an online database of usuryfree creatives who are committed to advancing the mission of connecting the various usuryfree community currency groups – locally, nationally and internationally. Details of the project must be submitted with the nomination.

8. An individual usuryfree creative who is dedicated to the political application of usuryfree living at any level of politics – municipal, provincial/state or federal. Details of the political activity must be submitted with the nomination.

9. An individual usuryfree creative who has produced a DVD or video during the current year wherein the problems of usury and/or the solutions as offered by the usuryfree community currency movement are presented. A copy of the DVD must be submitted with the nomination.

10. An individual musician or a musical group that has written a song about usury-based economics or usuryfree economics during the current year. A copy of the song must be submitted with the nomination.

11. A duly registered political party that officially endorses the usuryfree community currency movement. Proof in writing from the duly registered political party must be submitted with the nomination. This duly registered political party may be provincial/state or federal.

12. An individual or group of usuryfree creatives who has/have planned and hosted a usuryfree community currency conference during the current year. A copy of the schedule of events for the conference complete with the location and date must be submitted with the nomination.

13. A charitable foundation/organization that openly supports the usuryfree community currency movement. Details of how this particular foundation/organization supports the usuryfree community currency movement must be submitted with the nomination.

14. A member of the clergy (from any denomination) who is actively speaking outagainst the design flaw of usury and its eveil effects on individuals and on society. Proof of his/her usuryfree mission must be submitted with the nomination.

15. An individual usuryfree creative who incessantly seeks justice in matters relating to taxes and usury in their JUST-US system of commerce where it is enforced by their judges. Details of how justice is sought by this individual usuryfree creative must be submitted with the nomination.

NOTE: Readers are invited to suggest additional categories that could be considered for a nomination for a Winged Lion Award. Send your suggestion to the The UsuryFree Network at the address below.

All nominations must be submitted in writing. All nominations must be signed by the nominee and the seconder and mailed to: The UsuryFree Network, P. O. Box 9333, Ottawa, Ontario K1G 3V1

All nominations for the Winged Lion Awards must be postmarked on or before November 1st, of the current year.

Definitions:
UsuryFree Creative: ‘One who is dedicated to living a usuryfree lifestyle.’
UsuryFree Network: ‘A private network of usuryfree creatives who are actively promoting the usuryfree lifestyle.’
Winged Lion: ‘The historical symbol of usuryfree money is re-born and is printed on various paper notes of usuryfree community currency in this 21st Century.’

For more information about the “Fifth Annual UsuryFree Day and Week” visit The UsuryFree Eye Opener regularly:
http://usuryfree.blogspot.com

“…usual monthly graph of Russia’s bullion purchases over the last three year period. My back-of-the-envelope arithmetic shows that the Russian Central Bank has added 2.8 million ounces of gold to their reserves so far in 2009… and if my above hypothesis is correct, they’re going to add about another 1 million ounces before the end of the year. I thank Richard Nachbar [and his tireless assistant, Susan McCarthy] for providing this graph. Richard Nachbar is a rare coin dealer in upstate New York whose website Richard Nachbar Rare Coins is linked here.”

By Dr. Edwin Vieira, Jr., Ph.D., J.D.
November 17, 2009

NewsWithViews.com

[The following is the full text of an address presented to the National Heritage Center for Constitutional Studies at its 2009 Constitution Day conference.]

The Tenth-Amendment Resolutions from State Legislatures, the Tea Parties, the Town Hall Meetings, and other manifestations of WE THE PEOPLE’S feedupidness with monkey-business as usual in the Disgrace of Columbia—even the massive congregation on the Mall last September—are some of the most enlightening, encouraging, and energizing developments that American patriots have witnessed in a long time. For these events are all premised on the idea: “We don’t want you!”—that WE THE PEOPLE do not want any more, indeed they demand a great deal less, interference in their lives from rogue public officials in the General Government.

These events notwithstanding, the problem remains that too many among WE THE PEOPLE will start but then stop right there, with “We don’t want you!” That is not enough.

The complaint “We don’t want you!” needs to go further, to the resolve, “We won’t have you!” — that WE THE PEOPLE intend to rid themselves of the General Government’s interference.

And to make this resolve effective, WE THE PEOPLE need to design and put into effect remedial action, so that they can say with finality: “We don’t need you!”

The sequence must be—

(i) We don’t NEED you!” which makes it realistic to say:

(ii) We don’t WANT you!” which combined with the ability to make WE THE PEOPLE’S wants effective will lead to the necessary and sufficient action:

(iii) We won’t HAVE you!” and finally will yield the desired result:

(iv) We are RID of you!”

If WE THE PEOPLE have the ability they can give “teeth” to the desire, take the necessary action, and thereby accomplish their goal.

But what will all of this require?

• WE THE PEOPLE need to create actual workable institutions that take advantage of the political and legal position THE PEOPLE hold—i.e., as the ultimate sovereigns.

• WE THE PEOPLE need to create actual workable institutions that take advantage of the economic resources THE PEOPLE command—that THE PEOPLE are the true source of all real wealth in this country, and are in actual physical possession of most of it.

True enough, the Establishment holds bundles of paper claims to wealth, many (if not most) of them generated through the unconstitutional Federal Reserve System. But the insuperable problem for the Establishment will be how to collect on those claims if WE THE PEOPLE simply refuse to honor them. Anyone in the paper-currency racket who doubts that these claims can be declared unenforceable should read the Supreme Court’s decision in Craig v. Missouri, 29 U.S. (4 Peters) 410 (1830).

• WE THE PEOPLE need to create actual workable institutions that are politically, economically, and legally independent of the General Government:

Institutions that can compete with the faulty and fraudulent mechanisms that rogue officials in the General Government have foisted on this country in the key areas of economic and political control, particularly in the areas of (i) money and banking and (ii) what is called “homeland security”.

Institutions that can replace these fraudulent control-mechanisms with proper means to “establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity”. And

Institutions that will enable WE THE PEOPLE to defend themselves against retaliation from rogue officials in the General Government and from the private centers of multinational economic power.

In sum, WE THE PEOPLE must combine their economic resources and abilities with political and legal authority in large-scale organizations that will reflect the power inherent in numbers.

This cannot be done by or through the General Government at the present time, because the General Government is the main locus of this country’s problem, not the source of any solution for them.

It cannot be done through political parties, because parties (along with other factions and special-interest groups) are the control-mechanisms in the “divide and conquer” strategy the Establishment employs to prevent WE THE PEOPLE from asserting their political sovereignty in their own interest.

It cannot be done by individuals or private groups alone, primarily because: (i) private individuals and groups enjoy no independent legal authority; and (ii) there is probably no way to create a sufficiently large and effective private operation in any State, let alone throughout the entire country, in time.

It cannot be done by the State governments alone, because it is not simply a political question of governmental finance and administration, but will require a revamping of the entire private economies in each State, too.

Therefore, it will require both (i) participation by the State governments, because they have the legal authority and the ability to mobilize people in sufficient numbers, and (ii) mass action by WE THE PEOPLE as a whole.

The only establishment or institution that combines all of these elements is “the Militia of the several States”, the “well regulated Militia” that the Second Amendment tells us are “necessary to the security of a free State”.

But a true constitutional “well regulated Militia” exists in not one State in this Union today.

So, WE THE PEOPLE need to revitalize “the Militia of the several States” in order to regain and retain popular control over State governments, and through them to regain and retain control over the two fundamental powers of sovereignty: (i) the Power of the Purse—i.e., currency and credit, and (ii) the Power of the Sword—i.e., community self-defense.

Revitalization of the Militia will enable WE THE PEOPLE to exercise community self-reliance and ultimately true self-government in “a free State” with a sound free-market economy.

Americans need to combine all of the following elements in a single plan for mass action:

1. Revitalization of “the Militia of the several States”.

·The Second Amendment instructs every American that “[a] well regulated Militia” is “necessary to the security of a free State”—not just “useful”, and certainly not “optional”, but “necessary”. And not “necessary” in only some general sense, but specifically with respect to “the security of a free State”—which means that, according to “the supreme Law of the Land” itself, the very survival of constitutional freedom in this country depends upon the Militia.

The Constitution identifies no other establishment, institution, or entity as “necessary” for this vital purpose, or for any other purpose.

So why is not revitalization of the Militia, immediately if not sooner, “job one” on the agenda of every constitutionalist? How can patriots continue to deny in their actions what the Constitution tells them is “necessary” for the maintenance of constitutional government? Americans may say that they have faith in the Constitution—but faith without works is dead; and the Constitution is not self-executing.

·The purpose of revitalizing the Militia is to combine all the elements of each State’s “homeland security”—including police, emergency response, and so on—under the Militia, in order to obviate “top down” control by the police-state apparatus being set up through the Department of Homeland Security in Washington, D.C., and its various satellites, transmission-belts, and fellow travelers around the country. Revitalization of the Militia will return control to whom it belongs, in the hands of WE THE PEOPLE directly, with:

(i) total organizing, arming, disciplining, and training of THE PEOPLE to handle any emergency;
(ii) State production and provision of arms, ammunition, and accoutrements for the Militia—with all individuals to possess their arms and ammunition, whenever obtained from whatever source, as part of their Militia service—thus ending all of the General Government’s oppressive “gun control”; and, perhaps of most immediate importance,

(iii) assignment to the Militia of oversight over all new institutions of “economic homeland security” within the State.

2. Adoption of an alternative currency.

This is an idea which began in New Hampshire, and subsequently spread to other States, including Indiana, Colorado, and Montana. An alternative-currency bill has yet to be reported out of committee in any State legislature. But as the national economy melts down, the pressure for serious consideration and then passage of such a bill will become overwhelming, simply because there is no workable alternative consistent with the maintenance of America’s national economic sovereignty that can be put into operation in time.

The alternative-currency system will require not just the State to participate through its own public financial operations, but also will require every individual member of the Militia—that is, every able-bodied adult man and women—to participate in his or her own private economic transactions, in order to move both the State’s government and the State’s private economy as quickly as possible out from under the control of the Federal Reserve System and the rotten financial power-structure of the New York City-Washington, D.C. axis of fraud.

The actual silver and gold will be held: (i) in a State vault controlled by the Militia, and (ii) in the hands of Militiamen (the private holding of silver and gold will be as important as the private possession of arms). And,

Experts drawn from and subject to supervision by the Militia will be in charge of or will provide oversight for the system.

3. Establishment of a State Credit Exchange.

This Exchange will deal solely in so-called “real bills” financed with actual deposits of the alternative currency (no “fractional reserves”). This will be necessary in order to protect the State’s private economy from retaliation by the multinational financial power-structure, which will doubtlessly attempt to cut off credit to the State’s businessmen, farmers, and others, so as to sabotage the alternative-currency system.

Experts drawn from and subject to supervision by the Militia will be in charge of or will provide oversight for this Exchange, too.

4. Additional areas of concern and action could include:

Food independence and security through the suppression of multinational corporate agribusinesses.

Energy independence and security through mobilization of local resources and radical innovation in the provision of energy.

Assertion of local control over land and water usage, and other natural resources.

…et cetera…

All of these arrangements will be statutorily structured as functions of the State government and thereby extensions of direct popular sovereignty, and will be administered through the Militia, thus coming under the Second and Tenth Amendments’ guarantees of reserved powers to the States and the people.

5. Considerations for the selection of an initial State in which to bring this project to fruition.

In the nature of things, the necessary legislation will have to be drafted one State at a time. (No “one size fits all” bill is possible). Inevitably, therefore, this work will require the commitment of a great deal of time, effort, and expertise. Before such a commitment can be expected, let alone requested, of anyone, adequate groundwork must be laid:

There must be an extensive local grass-roots “freedom movement” in existence in that State and prepared specifically to promote the reform legislation.

There must be a solid legislative caucus in existence in that State’s legislature, preferably in each house (where a bicameral legislature exists).

There must be a workable plan, ready to implement and adequately funded, for mobilizing large numbers of activists from across the country to work in the targeted State to promote the reform legislation.

It is too late for parochialism on this subject: Everyone throughout this country has an interest in seeing this project succeed in the first State that undertakes it, because that State will be the exemplar for the others.

No one can deny that a crisis of overwhelming proportions is overtaking this country at an ever-accelerating speed. And each day appears darker than the one before it. But that in itself is a cause for hope—because, as the old saying goes, it is always darkest just before the dawn.

© 2009 Edwin Vieira, Jr. – All Rights Reserved

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For more than thirty years he has practiced law, with emphasis on constitutional issues. In the Supreme Court of the United States he successfully argued or briefed the cases leading to the landmark decisions Abood v. Detroit Board of Education, Chicago Teachers Union v. Hudson, and Communications Workers of America v. Beck, which established constitutional and statutory limitations on the uses to which labor unions, in both the private and the public sectors, may apply fees extracted from nonunion workers as a condition of their employment.

He has written numerous monographs and articles in scholarly journals, and lectured throughout the county. His most recent work on money and banking is the two-volume Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution (2002), the most comprehensive study in existence of American monetary law and history viewed from a constitutional perspective. www.piecesofeight.us

He is also the co-author (under a nom de plume) of the political novel CRA$HMAKER: A Federal Affaire (2000), a not-so-fictional story of an engineered crash of the Federal Reserve System, and the political upheaval it causes. www.crashmaker.com

His latest book is: “How To Dethrone the Imperial Judiciary“ … and Constitutional “Homeland Security,” Volume One, The Nation in Arms…

He can be reached at his new address:
52 Stonegate Court
Front Royal, VA 22630.

Posted by Gerald P. O’Driscoll

Over the weekend, Liu Mingkang, a senior Chinese official, blasted the economic policies of the Obama Administration.  He identified low interest rates in the U.S. as the cause of “massive speculation” that was inflating asset bubbles around the world. The U.S. dollar is being used in what is known as a carry trade and is borrowed cheaply to finance the purchase of real estate in Asian cities like Hong Kong and Singapore. The easy money policies of the Fed are also fueling a boom in commodity prices.

The ordinary American, if not the political class, recognizes that neither the Fed’s monetary actions nor the trillions in spending have helped them. Unemployment is in double digits. Former senior Bush economic adviser Larry Lindsey is reported to have estimated that Americans’ net worth has dropped $13 trillion since the beginning of the recession in December 2007. Americans suffer while speculators profit.

We are on the cusp of a dollar crisis.  President Jimmy Carter faced a similar crisis in his presidency. Carter ousted his own choice for Chairman of the Fed and appointed Paul Volcker to that position. Volcker recognized that the dollar crisis needed to be ended and instituted painful but necessary sound money policies.  President Reagan re-appointed Volcker and together they restored American prosperity. Volcker advises President Obama and can explain to the president why he must act now.

By the way, just a reminder from Mark, silver picked up almost a dollar today, closing at $18.42 per oz.  GoldMoney offers a digital silver account and so does Anglo Far East Bullion.