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STAFF NEWS & ANALYSIS
Is the Fed Being Torn Down in Order to Create a New, Powerful Global Entity?
By Daily Bell Staff - August 26, 2016

Are anti-Fed articles appearing in mainstream publications part of an extended program of tearing down the Fed in order to remake it as part of a global central bank?

Recently published anti-Fed arguments and their nearer-term motives  have been commented on with considerable accuracy by various alternative-media entities. These arguments are compellingly presented. But step back, please.

It is difficult to avoid concluding – if one examines events from the requisite altitude – that the current system will eventually give way to something more homogenized. Perhaps the IMF will take the lead, or perhaps the Fed and other powerful central banks will be more fully integrated under the supervision of the International Monetary Fund.

No matter the disasters of ever-larger bureaucratic, price-fixing entities, the solution is always seen to be even more centralization. The bigger the better: As if somehow technocratic corporatism and its affiliated bureaucracy are going to succeed when they finally accumulate enough power.

 Ordo ab chao …

And thus the tearing down proceeds apace. Does anyone really believe, for instance, that at the topmost level, people were not aware that posting an unmonitored Fed Facebook page would attract serious opposition (here)?

Is it some sort of secret that many are generally are disgusted with central banking and the Fed in particular? We are supposed to believe that an organization that can send $16 trillion around the world as it chooses (here) is incompetent about even the rudiments of public relations?

Before the big meeting at Jackson Hole that ends this weekend, (here)  prominent negative news has been featured regarding the Fed. The article regarding the Fed’s Facebook trolls was posted at US News and World Report. But other anti-Fed articles have attracted attention.

John Hilsenrath recently posted an anti-Fed article at the Wall Street Journal (here). An excerpt:

Years of Fed Missteps Fueled Disillusion With the Economy and Washington … Once-revered, [the] central bank failed to foresee the crisis and has struggled in its aftermath, fostering the rise of populism and distrust of institutions.

And then there is the just-published – and biting – article by former Fed member Kevin Warsh (“The Federal Reserve Needs New Thinking”), also posted at The Wall Street Journal (here).

An excerpt from the conclusion:

As the dispenser of fault and favor, the Fed is contributing to the public perception of an unfair, inequitable economic system. Real reform this is not … If, as is more likely, the economy is closer to recession than resurgence, the Fed is poorly positioned to respond with force, efficacy and credibility.

The Fed is vulnerable. Its recent centennial as our nation’s central bank should not be confused with its permanent acceptance in the American political system.

This is not normal rhetoric. It is provided by a senior member of the monetary establishment and presented in the nation’s most prestigious business journal.

Perhaps in order to ensure our comprehension, a previously established-group is suddenly rising to prominence, “Fed Up.”

Where is Fed Up being featured? Why in the Financial Times (here).

An excerpt:

‘Fed Up’ activists give message to Jackson Hole Central bank officials …

Federal Reserve officials on Thursday found their plans to tighten policy under assault from community activists, who accused them of compromising the interests of poorer citizens in a fight against an illusory threat of inflation.

In a meeting with the Fed Up coalition attended by 11 top US Fed officials on the eve of the Jackson Hole symposium, central bankers insisted they had no desire to halt the recovery but that they needed to act to prevent risky imbalances from emerging down the road.

However, the packed and occasionally heated gathering at the Jackson Lake Lodge saw some community activists arguing that the Federal Reserve leadership needed to better understand the plight of ethnic minority Americans on low wages.

The Fed’s decision to hold the meeting with activists reflects a need not to appear out of touch during a presidential election year when there is growing pressure from both sides of the political divide.

This is exactly the point. It doesn’t really matter if the Fed is right or wrong (invariably as a price-fixing institution it MUST be wrong). The larger issue here is that it is “open season” on the Fed:

The meeting was stacked with Fed Up activists from around the country wearing the group’s characteristic green T-shirts, with slogans including “We need a people’s Fed.”

Of course, we don’t really need a people’s Fed. The US doesn’t need a Fed at all. The world, generally speaking, doesn’t need central banks. They fix the value and volume of money and over time, price-fixing always creates economic disasters. Price fixing doesn’t work. Ever.

Some six years ago, we suggested (here) that the Fed – and other central banks – have no logical justification and would inevitably sink in public estimation.

However, these days we have no illusions that central banking is going to easily, or even effectively, disappear. Yes, it may be subject to more and more opprobrium. But if the system eventually breaks down worldwide, there is surely the possibility that those behind it will try to implement a new and even more centralized formula.

The dollar system is at stake, not just the Fed. In a previous article we pointed out that the dollar itself was under increasing pressure from both the ruble and yaun. Russia is reportedly doing more to separate the ruble from the dollar and the yuan is due to accumulate additional power as it joins the IMF’s SDR basket. See here for an analysis of both moves

It is during the implementation phase that the most massive opposition might be generated.  On the other hand, we are well aware that before the current quasi-global system was implemented (including the BIS, IMF and World Bank), a world war was waged that thoroughly disorganized the opposition of the day.

As of this writing, Janet Yellen has not yet given an eagerly awaited speech at Jackson Hole. Could it create another market meltdown? Within this context, we should continue to consider the larger question: Is the actual goal of the world’s current, deliberate chaos intended to support the creation of a new and more vehement global order?

Conclusion: As we observe the unfolding of what we call “dominant social themes” and the “directed history” accompanying them, we should certainly pay attention to patterns that can confirm our suspicions and clarify our understanding. In the meantime, as we watch the demonizing of central banking, we will continue to remind ourselves that there are always deeper agendas at work.

updated

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  • Sven

    Gotta pave the way for the “Phoenix” global currency issued by the IMF by 2018.

    • Vorant

      Out of the ashes….

  • Hilbert

    Sovereign state Keynesian Central Banking of which the FED is the undisputed center has slowly seen a growing chorus of high level pundit critics. As well, their are long standing calls from China and Russia for the IMF to take leadership for the global currency system.

    This current US centric system has effectively transferred most of the worlds assets into the top 1%. The world is awash in debt.

    Since the removal of gold from the monetary system (by the US) the fractional reserve, fiat monetary system is clearly in a bad state.

    The present reserve currency may have reached the end of it’s useful life.
    If that is true, a future crisis of confidence in the FED or the US dollar is nearly certain.

    • MDHeddich

      A derivatives crisis has been simmering in the MSM financial media for some time and is one such candidate to lead to a call for a new financial order.

      Interest rate hikes by the FED another.

      It is hard not to take notice the US election as well as the US media lead “dire thought of Mr. Trump as President”

      Their are too many black swans in the pond to count at this stage but I agree, if we see the FED and the US being painted as unfit to lead alone by high level apparatchik’s-we should take notice.

      • TotoroG

        It appears the G20 will meet in China in September. The guest of honor will be Mr. Putin? This is in stark contrast to how the US
        portrays Russia. It will be interesting to see the results of this meeting.

        http://europe.newsweek.com/putin-be-main-guest-g20-summit-says-china-487245?yptr=yahoo

        • QuintanaJ

          This is very telling. The Left Press is Calling Mr. Trump a Putin supporter and demonizing him. Putin was expelled from the G8 in 2014.

          Now he is the “guest of honor” of Chinas G20 summit and your article is from Newsweek-a US publication.

          As well Nigel Farage is now supporting Mr. Trump.

          Interesting times if nothing else but making Putin the guest of honor plays into the theme of Russian and China wanting the US to give up it’s veto vote in the IMF and head toward a less dollar based currency system.

      • Lynn Carroll

        Oh God . . . Yes!

    • esqualido

      ” The useful life of a fiat currency” is how long you can get away with it. How the hell would you know how much Central Banker A is surreptitiously printing in his basement? That is a simple enough question. No one know- the leaders of the Eurozone never kept tabs how much debt was being created, despite mandatory guidelines, by Italy, Greece, Spain, until it got out of control- there was no discussion of “bailouts” at the onset. The gold standard was always, and is intended to keep people honest: if your paper certificate says “redeemable for x amount of gold or silver) on demand” (pretty f*cking simple, I would say), and they don’t redeem it, you simply hang them (well, that sounds extreme, but in America, 1800, that is what government do to you.

      • Lynn Carroll

        1.7 billion dollars in Euros and Swiss dollars paid in cash money? Who in the hell would come up with an idiotic scheme like that? Oh yeah, Obama. Tell me that every country on this earth is not printing their own money until they are neck deep in it. Every “dollar” of currency in circulation today will soon be worth toilet paper (which we are all going to be needing when we can’t buy the real thing with this worthless paper money.)

  • Bolt Upright

    I’m hoarding toilet paper and cigarettes for bartering purposes.

    • Lynn Carroll

      Toilet paper and frozen White Castle Sliders would be a better bet!

  • Vorant

    The FED falls they all fall and out of the ashes will come a much more regulated “national” banking system based on GOLD. Then only those with gold will be considered stable, sadly the getting from point A to B will be a long blood soaked path.

    • concerndcitizen

      Might be faster and easier than you think. There’s a lot more gold than people think outside the control system.

      • Lynn Carroll

        I do know that Ft. Knox no longer holds even an ingot of gold. They sold it all to Russia during the 1st Clinton era. We are about to enter the 2nd Clinton era if left to the frikken Electoral College.

    • Lynn Carroll

      Sadly, I believe you are onto something.

  • TimeToWakeUPAmerica

    (PRIVATELY) PRAY TO THE SUPREME CREATOR OF THE UNIVERSE, TO WITHHOLD JUDGEMENT ON AMERICA AND AMERICANS FOR ALLOWING OUR ONCE CONSTITUTIONAL, INTEREST-FREE CURRENCY TO FALL INTO THE HANDS OF THOSE WHO CALL THEMSELVES “JEWS”, AND ARE NOT, BUT ARE THE SYNAGOGUE OF SATAN! God WILL pass judgement on America, and Americans, if we do not take control of our country out of the hands of the CFR-led ‘District’ of Criminals, who stood down, on 9/11, while Mossad carried out the destruction on 9/11, at the behest of their LUCIFERIAN OVERLORDS in the ‘City’ of London, and Vatican ‘City’ !!!!! It can be demonstrated, using historically documented FACTS, that self-proclaimed “Jews” have essentially HIJACKED the entirety of Western Civilization, or at least the major institutions of the West. Who sits at the very top? Rothschilds? Sabbatean-Frankists? Chabad-Lubavitchers? Hasidim/Chasidim?

    Are Your Opinions Crafted by Foreign Powers? | Jerry Robinson
    http://sgtreport.com/2016/07/are-your-opinions-crafted-by-foreign-powers-jerry-robinson/

    Read the comments. Click on the links. Read/view/listen to ALL content.

    • Lynn Carroll

      Wow, Jerry, you are really out there aren’t you? I don’t want to jump to any conclusions, but didn’t Hitler come to the same conclusions? What in the world are self-proclaimed “Jews?” and how is it possible that they have they somehow bamboozled the entire world?

      You should know that “FACTS” can be used to generate whatever scenario one desires. You should also know that most of us know this. I am not a Jew nor do I aspire to be one. But, I will say this for the financial mess we are in. If it weren’t for Dodd and Franks twisting the arms of legitimate banks to lend money to those who they knew could not repay those housing loans, our economy would not be in the tank. . . and that was only one of the many idiotic liberal schemes to “equalize” our society. Nor can I cannot support G. BUSH II and his feckless TARP bailouts.

      But, we all MUST admit that 8 years of Obama has created a fiscal and social nightmare, and I don’t think that Obama is a Jew, while I do believe he is a Progressive Socialist bent on destroying a once positive global influence in this world: America.

  • rahrog

    In answer to the question posed by the title of this piece – Yep.

  • LieutenantM

    yes. Out of chaos expect ORDER[s]

    Dennis Morrisseau
    USArmy Officer[Vietnam era] ANTI-WAR
    Lieutenant Morrisseau’s Rebellion
    FIRECONGRESS.org
    POB 177, W. Pawlet, VT 05775
    dmorso1@netzero.net

  • The great abiding and increasing worry and terror for that which currently or in the future controls things so badly, and don’t let us get bogged down in putting a name to the corporations and organisations which are failing so spectacularly to command control, is that simple common sense and widely shared intelligence in multiple channels which is constantly streamed invisibly to sectors and vectors/state and non state actors in support of radical underground movements and paramilitary circles, is that things are gonna get real personal with guiding heads in headquarters being targeted for summary execution/politically motivated assassination in just the same way that the System’s systems take care of their enemies and old friends turned renegade rouge bull elephant.

    And the world is awash with all manner of budding and willing psychopaths, is it not? Every day the news spills us yarns of their actions in fields prepared to be laid waste and rendered barren by the West.

    It is not a department or an office or a cabinet or a committee that makes and takes crazy decisions, it is a leading human who be heeded and be thought to be needed. No one is irreplaceable in an instant though.

    And Uncle Sam appears to have fallen headlong into the same trap that this article ……. HOW CIA WON THE COLD WAR …… suggests he laid for the Russian bear, for they too today are surely tilting at similar windmills and mad inventive ghosts?

    And that is both real dumb and virtually stupid and indicates a definite lack of viable future intelligence for sharing/spreading/believing.

    • It is also a perfectly ripe, zeroday rich vulnerability for ruthless exploitation and universal export and one of those new fangled, quantum entangling PACT things …….. Persistent Active Cyber Threat and/or Persistent Advanced Cyber Treat thing.

      And something surely quite different and alien/irregular and unconventional for the future and dumb systems to deal with and get thoroughly used to being engaged with? Yes, of that you can be definitely assured and /or terrified if that be your bag.

  • esqualido

    The Fed is no more going to disappear than the Bastille- it will have to be taken down one brick at a time. Writers like John Hilsenrath, of the in-the-tank-for the-Fed WSJ, who describes their parasitic operations as “missteps” (“Years of Fed Missteps Fueled Disillusion With the Economy and Washington … Once-revered, [the] central bank failed to foresee the crisis and has struggled in its aftermath, fostering the rise of populism and distrust of institutions”) manages to look at it without seeing- or admitting- that this private bank has been making trillions available, virtually interest-free to the very banks that own it, and sharing with the needy is not on their agenda- pay-day loansharking and double digit rates on their credit cards (while receiving no interest on savings) is their M.O. Napoleon was no revolutionary, but he at least saw it for what it was and refused to be their slave, maintaining a gold standard. He bit off more than he could chew, though. In America, Jackson got it right, and when he left office, with a gold standard, there was NO national debt. Central baks are about slavery, and we are $20 trillion slaves, Eurozoneans are slaves, and for all their boasting about never, never,never being slaves, the Brits, thanks to their own central bank, the Bank of England, are indeed slaves too.

    • Lynn Carroll

      I have been wondering why the credit card loan sharks can get away with ridiculously high interest rates, but the banks cannot afford to cough up more than a 1/2 % savings interest, and in some cases are actually charging people to keep a savings account. Centralizing banks is a sure way to financial disaster since we are depending on people to be moral and have scruples when it comes to cheating the public out of their money. That is a sure way to monetary slavery. Can anyone explain to me why the gold standard is a bad idea for the people? I’m sure they can come up with hundreds of reasons why it’s bad for the banks and other money manipulators.

      • esqualido

        The reason that is always cited is that it does not provide for expansion of the money supply during times of economic stress. But greed is at the heart of it. Laws to combat usury(traditionally charging over 10x the rate paid savers) used to be enforced, but through the banks’ owning credit card issuing companies, they are able to circumvent them, when they cannot simply buy off the politicians. The accelerated drive toward eliminating cash is because people eventually realize that it is better to hide cash in the mattress than to pay the bank to hold it, not to mention an epidemic of nosey-Parkerism on the part of practically every government.
        However, the great sucking sound that H. Ross Perot (correctly) described regarding jobs fleeing due to NAFTA could as easily apply to foreign banks- imagine, that for CIBC, or any other foreign bank operating in the U.S., offering ten times the current rate of return to savers would only amount to 1.0% APR!

        • concerndcitizen

          During times of economic stress, prices drop. For savers, that’s good because things are cheaper. People who owe money, it’s harder for them to pay it back. Tough luck.

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