Hiding economic statistics is another weapon in the 1%'s war on the 99%

[The following is an excerpt from our new book, 7 Steps to Global Economic and Spiritual Transformation, which is now available online at Amazon, Barnes & Noble, and other sites.]

Federal Reserve Board of Governors

When the Fed stopped publishing its broadest money supply measure, M3, in March 2006, it gave the following excuse:

M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.

Some observers claimed that the Fed did this to cover the fact that they were inflating the dollar, but that's old news, since usury will, over time, inflate any currency. There's something else going on.

A few organizations continue to extrapolate from the data available, which is wholly controlled by the banking cartel, thus many otherwise well-meaning people are distracted by the seeming legitimacy of the misleading picture painted by various dupes and propagandists. Behind all this posturing is the simple truth that the measure of the money supply is intentionally obfuscated because the Fed is an instrument in a much larger coordinated strategy--the self-described (David Rockefeller and George H.W. Bush) New World Order (NWO)--discussed here and here, to eliminate the last remaining vestiges of alternate, public monetary systems and power, as well as to radically shrink the world's population and make a profit while they're at it.

So, given this intentional distortion of the data, any discussion, such as that presented here, should be viewed with these statistical limitations in mind.

Here’s a good example of how The New York Times operates as a mouthpiece for the NWO, misleading its readers as to what is going on, in this case the condition of the U.S. and world economy. On October 23, 2013, the Times ran "Shutdown Will Hinder True Gauge of Economy." Contrary to what the Times says, the recent shutdown over the so-called "debt ceiling"--as well as "sequestration," "austerity," "budget deficits," etc--is (in addition to serving as an effective distraction from the root cause [private control over money creation]), just an excuse to further decimate the economy, destroy the tax base, cripple the public sector, steal public assets, and, of course, steal private assets as well.

Leading lights of the money cartel testify before Congress

The Republicans and the Democrats are owned and operated by the banks and are both responsible for this. The fact that each of these so-called parties has "loss leaders" (for the Democrats it's equality, as in making us all equal slaves, and for the Republicans, it's the perception of anti-government, low taxes, and draconian "family values") by which they attract different segments of the public to vote for them (and not for a viable 3rd party), does not make their ultimate objectives different from one another; to wit:

"... When, through the law’s intervention, the common people shall have lost their homes, they will be more easy to control and more easy to govern, and they shall not be able to resist the strong hand of the Government acting in accordance with… the control of the leaders of finance.

"We must keep the people busy with political antagonisms. ... By dividing the electorate in this way, we’ll be able to have them spend their energies at struggling amongst themselves on questions that, for us, have no importance whatsoever." --US Bankers magazine, 1892

The bottom line is that the NWO did not want us to know the degree to which they were going to shrink the EFFECTIVE money supply, when they pulled the plug for the 19th time (in 2008) since they hijacked U.S. sovereignty 100 years ago with the Federal Reserve Act.

Let's look a series of charts and present a narrative that makes sense of what we can derive from these (presumably accurate) statistics:

Illustration #1

First, we have the annual change rate of the money supply. This can be a little tricky. What is represented here is not the actual money supply, but the rate at which it is increasing or decreasing. Beginning in 2008, you can see a precipitous decline, which translates as an approximate loss of $3 to $4 trillion in the money supply. Then the supply begins to increase at a much slower rate (drawn out over time) than it decreased. This means that the money supply, now $3 to $4 trillion less than when it peaked, begins to grow slowly, never reaching the pre-crash rate. So, despite the growth, the money supply is still smaller than it was in 2008.

Illustration #2

Next, let's look at the velocity of money, which is a measure of how quickly the money supply circulates in the economy. As you can see, after a steep drop following the crash, the velocity has continued to slow. Following from the conclusions of Illustration #1, this means that whatever small increase in the reduced money supply may be happening, it is negated by the loss of velocity. Generally speaking, we can assume this is because those in receipt of the small increase in the money supply are hanging on to it. For example, the so-called various iterations of quantitative easing, which were nothing more than the Fed buying toxic assets from the too big to fail (TBTF) banks (sticking the taxpayers with this sludge), which, in turn, held on to the cash infusion to buy prime assets at fire-sale prices, as the diminished money supply generated the expected joblessness, bankruptcies, and foreclosures.

Illustration #3

A verification in the effects of a sustained decrease in the money supply can be seen in the unemployment rate that, if those who were laid off and discouraged, after a long period of looking, are included, continues to slog along at over 20%! (Meanwhile, the left and right wings of the bank party continue to create meaningless arguments over distorted statistics. A good example of this are the current claims that the U.S. economy has recovered while, in fact, about half the nation verges on poverty.

Illustration #4

A verification of the concentration of the money supply in the hands of the big banks is shown in a 2010 article that concludes 80% of the cash of the 50 largest U.S. corporations (shown above in Illustration #4) is in the hands of four corporations, the biggest stockholders (by virtue of capitalization) in the Fed.

Illustration #5

Most interestingly, the money held by these 50 corporations--about $3.7 trillion dollars in cash--exceeds that of the capital reserves of the U.S. Federal Reserve System. That makes perfect sense, of course, because the banks (and their corporations) own the Fed, and they keep a fair amount of this cash overseas. It's easy for them to move money around, because Federal Reserve Notes are still the world reserve currency in most places; for example, the Fed backs up the EU Central Bank.

Principal stockholders of the Fed

It should also be noted that, as we've detailed before (repeated below), the business model for these "too big to jail" banks is FRAUD:

Why the Senate Won't Touch Jamie Dimon: How JPMorgan Props Up US Debt http://truth-out.org/news/item/9876-the-jpmorgan-derivatives-propping-up-us-debt-why-the-senate-wont-touch-jamie-dimon

Even before the Fed initiated its POMO (Permanent Open Market Operations) injections of outright treasury buys in a program euphemistically titled "Quantitative Easing 2" (a.k.a printing money out of thin air) the Fed's daily zero percent loans of taxpayer money to Goldman Sachs and J.P. Morgan were used almost exclusively to buy stocks -- and then sell them again within minutes or even seconds. http://www.opednews.com/articles/THE-U-S-STOCK-MARKET-IS-R-by-lila-york-101227-303.html

Hidden purchases of U.S. Treasury bonds http://georgewashington2.blogspot.com/2009/09/is-treasury-faking-foreign-purchases-of.html and http://www.paulcraigroberts.org/2014/05/12/fed-great-deceiver-paul-craig-roberts/. This sham continues: http://www.dailypaul.com/320958/fed-update-buys-60-of-us-govt-deficit-in-2014

Rigging of LIBOR: Barclays Settles Regulators' Claims Over Manipulation of Key Rates http://dealbook.nytimes.com/2012/06/27/barclays-said-to-settle-regulatory-claims-over-benchmark-manipulation/

Manipulating the price of gold: http://www.activistpost.com/2014/01/the-hows-and-whys-of-gold-price.html

The rigging of the municipal bond market: http://www.rollingstone.com/politics/news/the-scam-wall-street-learned-from-the-mafia-20120620#ixzz1yS3rPeCP

Baltimore sues Wall Street over bond rigging: http://www.baltimoresun.com/news/opinion/editorial/bs-ed-libor-20120716,0,968211.story

Oakland sues Goldman Sachs over interest rate swaps (derivatives) that it bought for protection and lost while the market was manipulated http://www.forbes.com/sites/halahtouryalai/2012/07/11/city-of-oakland-taps-occupy-wall-street-to-take-on-goldman-sachs/

Philadelphia sues banks, alleging antitrust violations http://www.law.com/jsp/pa/PubArticlePA.jsp?hubtype=ThisWeek&id=1202612875031&slreturn=20130629162925

Computerized Front Running: Another Goldman-Dominated Fraud. (How the banks’ computer read incoming orders and jump ahead of them to skim profits (from our pension funds, mutual funds, and 401ks) http://www.webofdebt.com/articles/computerized_front_running.php

Helping the 1% avoid paying U.S. taxes and the "Justice Department" allowing the banks to get away with this http://truth-out.org/buzzflash/commentary/swiss-banking-giant-helped-us-1-evade-taxes-on-billions-of-dollars-but-justice-department-hasn-t-prosecuted

Wall Street Manipulates Energy Prices, Gold … and Every Other Market http://www.globalresearch.ca/financial-criminality-wall-street-manipulates-energy-prices-gold-and-every-other-market/5380325

After a fraud is discovered, banks, their corporations, and their vassal governments collude on fake settlements for which they are fined mills on the dollar; then, the pattern is repeated, thus fraud is the business model:

LIBOR investigation labeled whitewash before it begins. Labor MP launches own investigation. http://www.guardian.co.uk/business/2012/jul/13/libor-scandal-banking-inquiry-whitewash

Interest rate swaps: A fraud bigger than LIBOR http://www.rollingstone.com/politics/news/everything-is-rigged-the-biggest-financial-scandal-yet-20130425

50 states’ attorneys general pretend to resist MERS settlement and then settle for mills on the dollar. This fraud began with sub-prime mortgages, which were then securitized, banded together, and sold as legitimate investments. When the economy was brought down, these securitized mortgages were virtually worthless, and were repurchased for pennies on the dollar, or illegally seized by banks through rigged foreclosures. The MERS scam also allowed the banks to avoid filing fees to the counties, thereby illegally depriving them of billions of dollars. On top of all of this, there are legitimate legal grounds for claiming that the chain of title to 70 million mortgages has been broken. http://www.huffingtonpost.com/2012/01/12/attorney-general-foreclosure-settlement-eric-schneiderman-beau-biden_n_1202643.html

Top Justice Department Officials Work for the banks they are responsible for regulating http://www.reuters.com/article/2012/01/20/us-usa-holder-mortgage-idUSTRE80J0PH20120120

Stern words and a pea-sized fine for Google http://www.nytimes.com/2013/04/23/business/global/stern-words-and-pea-size-punishment-for-google.html (Fine equals two minutes of annual profit or 0.0002%)

Hedge fund takes position on a corporate collapse, then pulls strings to make it happen. www.nytimes.com/2014/03/10/business/staking-1-billion-that-herbalife-will-fail-then-ackman-lobbying-to-bring-it-down.html

Retiring Obama Administration Prosecutor Says the SEC Is Corrupt. http://www.truth-out.org/buzzflash/commentary/retiring-obama-administration-prosecutor-says-the-sec-is-corrupt

Speculation: The same pattern is repeated for commodities

How Goldman Sachs manipulates the aluminum market: A Shuffle of Aluminum, but to Banks, Pure Gold http://www.nytimes.com/2013/07/21/business/a-shuffle-of-aluminum-but-to-banks-pure-gold.html

JPMorgan Agrees to Pay $410 Million in Power Market Manipulation Case http://dealbook.nytimes.com/2013/07/30/jpmorgan-to-pay-410-million-in-power-market-manipulation-case/

Wall St. Exploits Ethanol Credits, and Prices Spike www.nytimes.com/2013/09/15/business/wall-st-exploits-ethanol-credits-and-prices-spike.html

Senate Report Finds Goldman and JPMorgan Can Influence Commodities http://dealbook.nytimes.com/2014/11/19/senate-report-criticizes-goldman-and-jpmorgan-over-their-roles-in-commodities-market/

Additional frauds (added 11/6/2013 and following):

EU Oil Manipulation Probe Shines Light on Platts Pricing

Worldwide currency manipulation

U.S. Investigates Currency Trades by Major Banks

Two Giant Banks, Seen as Immune, Become Targets

Royal Bank of Scotland retains special status after LIBOR conviction

Wall Street Greed and the Corrupt Global Banking Cartel: Too Big to Prosecute? Not for a California Jury

Credit Suisse Pleads Guilty in Felony Case

Bank of America's fine for massive mortgage fraud is a public relations stunt

America's top 10 corporate tax evaders

Big Banks Face Another Round of U.S. Charges

Prosecutors Suspect Repeat Offenses on Wall Street

Rate-Rigging Case Yields More Hefty Fines for Top Banks

Former Federal Reserve officials commit perjury in AIG fraud case

S.&.P. Announces $1.37 Billion Settlement With Prosecutors

HSBC files show how Swiss bank helped clients dodge taxes and hide millions

For those keeping score: The cumulative effect of these frauds means the world's key price benchmarks for interest rates, energy and currencies--as well as all the markets (money, mortgages, and other commodities)--are all compromised and that those who have profited from these scams have gotten away with paying a pittance (mills on the dollar) of their ill-gotten gains. Not one of these criminals has served any prison time.

In previous posts, we've suggested a few strategies for combating this vast criminal conspiracy, including public banks at a city and county level. One additional strategy to consider is organizing common law grand juries. Clearly, the time has come to replace the pot smokers in our prisons with the most dangerous racketeers on the planet. And, of course, there is the choice of simply nullifying bankster imposed laws.

Copyright 2013, Robert Bows

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[The forgoing is an excerpt from our new book, 7 Steps to Global Economic and Spiritual Transformation, which is now available online at Amazon, Barnes & Noble, and other sites.]