Senate Chooses New King

Senate Chooses New King
Vol: 50 Issue: 18 Friday, November 18, 2005

The Senate Banking, Housing and Urban Affairs Committee favorably recommended Ben Bernake’s confirmation to the most powerful post in the Known Universe, the chairmanship of the Federal Reserve.

Bernake is a former Princeton professor and Fed governor who now serves as chairman of the White House Council of Economic Advisers. Lawmakers and the administration are wasting no time on his nomination because they want him ready to take over when 79-year-old Greenspan retires Jan. 31 after 18-plus years at the helm.

The chairmanship of the Fed is the closest thing America has to a king, and during his tenure, his every expression of thought on the economy has all the authority of any Caesar of antiquity. A word from him can crush a dynasty, change an era, or spawn economic royalty.

Outgoing Fed Chairman Alan Greenspan once remarked the economy was showing signs of ‘irrational exuberance’. Greenspan’s comment came after the New York stock exchange had closed, but traders around the world were just starting their day.

In Japan’s market, the first to open, traders interpreted the Federal Reserve Chairman’s comments to mean that stocks in the U.S. market were overvalued and that, in response, the Federal Reserve might raise U.S. interest rates, thus affecting markets everywhere.

The Japanese stock market plunged 3.2 percent, as did Hong Kong’s. In Frankfurt, the German market fell 4 percent. In London, traders finished the day losing 2 percent of their market value.

And when the New York Stock Exchange opened the next morning, it fell by 2 percent within the first thirty minutes of trading. Not even the president has that kind of power.

The Federal Reserve Chairman is nominated by the President and confirmed by the Senate, but his decisions do not have to be ratified by the President or anyone else in the executive or legislative branches of government.

The Fed does not receive funding from Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.

Once a member of the Board of Governors is appointed by the president, he or she is almost as independent as a U.S. Supreme Court judge, (although it is not a lifetime appointment.)

The Chairman of the Federal Reserve is both a king and a king-maker. George Bush 41 blamed his 1992 loss to Bill Clinton directly on Alan Greenspan, who inexplicably tightened the money supply just before the election, causing a short-term recession that forced Bush to break his celebrated promise of “no new taxes.”

Only months before, Bush the Elder was enjoying approval ratings in the high 80’s following the successful prosecution of the Gulf War. Greenspan’s temporary recession, (never adequately explained) cut Bush’s approval rating in half in less than six months.

Clinton beat Bush 41% to 38% in the lowest margin of electoral victory since Teddy Roosevelt’s ‘Bull Moose’ Party split the 1912 ticket and resulted in incumbent (and central banking opponent) William Howard Taft’s defeat by central banking proponent Woodrow Wilson. And the rest, as they say, is history.

In the 1982 case Lewis v. United States, the Ninth Circuit Federal Court of Appeals stated that the “Federal reserve banks are not federal instrumentalities for purposes of a Federal Torts Claims Act, but are independent, privately owned and locally controlled corporations.”

As such, the Federal Reserve’s role is in direct violation of Article I, Section 8, Clause 5 of the Constitution which specifically authorizes the Congress with the power “to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures” and makes no provision for the Congress to delegate that authority to an independent, privately-owned, for-profit banking institution.

The history of the Federal Reserve is one of the few conspiracist theories that exist in fact — the creation of the Federal Reserve Banking System in 1913 was the realization of the goals of a banking conspiracy dating back to the days of the American Revolution.

Our economy and how it works is a mystery to most people, and that is what makes it so easy to get confused, and is what made the Federal Reserve conspiracy possible in the first place.

The United States operates on a ‘deficit’ economy, and it has ever since the passage of the Federal Reserve Act in 1913 and the illegal confiscation of US gold in 1933. Prior to 1913, the US had operated as a ‘barter’ economy.

It is the ‘barter’ economy that most Americans believe is in operation today, and that is the fundamental flaw that gives spin doctors the green light.

In a ‘barter’ economy, something of value is exchanged for something of value. To have value, it must have substance, it must be acceptable in exchange for goods and services to the general public, and its supply must be finite — that is to say, it has to be sufficiently rare as to maintain its value.

In the US economy, the Currency Act of 1793 set the value of American currency as a weight of gold based on the Dutch unit of measure called the ‘Thaler’ — what we now call a Troy ounce. The ‘thaler’ became Americanized as the ‘dollar’ and it was a unit of measure for a substance of value.

With the confiscation of gold in 1933, the Gold Standard was repealed and replaced by the less-valuable Silver Standard. Suddenly a ‘thaler’ was not gold, but a weight of silver.

The Federal Reserve began issuing dollar bills called ‘Silver certificates’ and declared them redeemable in silver. These certificates of weight were replaced in 1963 by the Federal Reserve Note which promised redemption in ‘Lawful US Money’.

However, the Currency Act of 1793 declared one ‘thaler’ of gold to be ‘Lawful US Money’ — and has never been officially repealed by Congress. So when people demanded redemption of their Federal Reserve Notes in ‘Lawful US Money the face of the note was changed to read, “This bill is legal tender” — in effect, declaring a weight of a substance to actually BE the substance it is supposed to weigh.

Of course, it was theft, remains an unpunished theft, was perpetrated by the money trust that controls the Federal Reserve (which is neither ‘federal’ nor is it a ‘reserve’) and made possible the very thing the Fed was ostensibly created to prevent — inflation, deflation, recession and depression.

But it is a fait accompli, and the existing global economy now depends on it. Turning our economy back from a debit-based economy to a barter economy is as possible as turning a pickle back into a cucumber.

A debit-based economy REQUIRES high deficits to make it work. Investment, production and job growth DEPEND on high national debt. Reducing the debt weakens the overall economy. Those are contradictory-sounding facts, but they are nonetheless true.

We’ve done analogy before, but let’s take a family making, from all sources, about fifty thousand a year. Now, take that family’s credit away from them. No credit cards, no loans, cash only.

What kind of car can they afford? They would have to save up to pay cash for a new $25,000 car. What about their housing? How long would it take YOU to save up enough to buy your own home for cash? What about that new fridge? No credit cards, no revolving credit, just cash.

A family making a thousand dollars a week would be just getting by. Suppose we are talking about a family making $100,000 per year, about two thousand dollars per week, and a member of the American ‘rich’?

What kind of car would THEY drive? (Still unlikely to be new). They could probably save up and buy themselves a house in about 10 years. But it would be a starter home. They could buy a new fridge or stove or TV set, but that might put a dent in their home savings account.

Give both families back their credit cards, revolving charges, mortgage and car loans, and they are living the American Dream. The family making a hundred thousand a year live in a nice home in the suburbs, commutes to work in an expensive SUV, AND has a nice retirement savings account.

The family making fifty grand a year now drives a nearly-new mini-van, has a nice, but smaller, home in a less expensive neighborhood, and sometimes still has to choose between retirement contributions and big-ticket items. But, thanks to a debit-based economy, they can still live better than they would making twice as much but paying cash for everything.

It is in the interest of the banking and lending institutions to continue to lend them money against their accumulated equity because, first, banks make money from interest, and, second (and most importantly), the collateral is ‘real’ property.

Federal Reserve banks operate according to a scheme called ‘fractional reserve banking.’ Under this scheme, a Fed-member bank need only maintain a 10% asset-to-loan ratio. For a Fed bank to issue a $100k mortgage loan, it need only have $10k in assets.

The remaining $90,000 does not exist until after the mortgage is repaid. If the mortgagee defaults, the bank can seize real property — in exchange for money that never existed — and then post the entire transaction as a business loss!

In the debit system, the Fed issues fiat dollars to control the economy, but each one is worth fractionally less, since it is just a case of cutting smaller slices from the pie.

That is what creates inflation. The Fed controls inflation by either cutting back or increasing the supply of dollars.

But it is still theft, albeit legal.

In 1914, one could buy a fine men’s suit for a $20 gold piece. Today, the same suit costs $500.00 — but you could buy the store’s inventory with a 1912 US gold double-eagle.


The creation and existence of the Federal Reserve system is an absolute necessity to the fulfillment of Bible prophecy in the last days. As such, it serves as one of those examples of the differences between the knowledge of ‘right and wrong’ and the knowledge of ‘good and evil’.

The oldest lie in human history is the one from the Garden of Eden whereby Satan promises humanity the knowledge of good and evil. ‘Good and evil’ are not actions — the are outcomes. Outcomes are known only to God.

The Federal Reserve system is an evil planned by evil men for evil reasons by any reasonable definition of the word, but it is a necessary evil to God’s unfolding plan. And God’s will is the very definition of ‘good’. So, while the system is evil, God uses it for good. So there is no need to fight the system – it exists because it must.

The US National Debt Clock says that America is currently about $8.1 trillion in debt. To put that into some perspective, the US National Debt on January 1, 1791 was just over $75 million. The current national debt is increasing at the rate of $75 million PER HOUR.

Here is a little interesting tidbit of information. On May 1, 2000, Bill Clinton announced the US would begin paying down the National Debt. Soon, the National Debt Clock billboard near Times Square began ticking backward at the rate of $30 an hour. On September 1, 2000, the clock’s plug was pulled and the billboard covered by a red, white and blue curtain.

At the same time, the stock market began to falter, the boom busted, inflation made its first appearance in nearly a decade and the Clinton economic miracle collapsed into the recession that plagued Bush’s first two years in office.

Once the budget surplus was eaten up by post 9/11 military expenditures, the national debt started upticking again, and economic equilibrium was restored. The economy began to expand again. The best efforts of the administrations opponents in the House and Senate to talk it back down failed, because lawmakers have no more actual control over the economy than the White House does.

Since our economy is really based on debt, rather than assets, and there is no actual wealth supporting the dollar, currency is nothing more than an unnecessary illusion. (Think about the last time you bought a house, car or other big ticket item. Just how much actual currency did YOU see?)

Cash in our society is an anachronism — most people use credit or debit cards and use cash for small purchases only. Personally, I almost never carry cash. I can buy almost anything anywhere by using a debit card. Using it to take cash out of a bank seems an unnecessary step — especially if the ATM machine is going to charge me for dispensing it.

Eliminating cash as a form of economic exchange would not be a hard sell to the public. Without untraceable cash, the drug trade would collapse overnight. So would many kinds of crime. What is a burglar going to do with his loot? Open a warehouse? It would put international counterfeiters out of business, strangle off revenue to rogue states like North Korea, and cripple international terrorism.

The elimination of cash is an idea whose time has come. Where could Osama bin Laden use a debit card?

The system came into being slowly, a series of responses to the demands of the marketplace, security and the availability of technology. There are conspiracies and conspirators behind the plan, but it is not necessarily a Satanic conspiracy. There’s big money to be made and that always involves conspiracy and conspirators. Whatever the intent, it is here and almost completely prepared for its ultimate use.

“And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.” (Revelation 13:16-17)

John says the mark of the beast is also an act of worship. No Christian can ‘accidentally’ take the mark, so Christians needn’t fear debit or credit cards. If anything, the system proves that events are unfolding as God intended, and God can be trusted.

The point is this. The Mark of the Beast prophecy was never technologically possible at any point in history until this generation. Today the infrastructure is being developed that will make it possible, even probable.

It is a direction foretold 2000 years ago from a cave on the island of Patmos, but to be fulfilled in a single generation, somewhere in time.

The same generation that would witness the rebirth of Israel, the development of globalism, the exponential increase in knowledge, and the development of space technology.

“Verily I say unto you, This generation shall not pass, till all these things be fulfilled.” (Matthew 24:34)

This entry was posted in Briefings by Pete Garcia. Bookmark the permalink.

About Pete Garcia

Christian, father, husband, veteran, pilot, and sinner saved by grace. I am a firm believer in, and follower of Jesus Christ. I am Pre-Trib, Dispensational, and Non-Denominational (but I lean Southern Baptist).

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s