The
Federal Reserve: Its Origins, History EDITOR'S
COMMENTS Gee, I love Smoothies from the Dairy Queen! We find the Author's style humorously satirical and most amusing. When one is talking about a subject that is this clandestinely serious, and when one understands the evils that the Federal Reserve has been perpetrating on a Nation since 1913, a satirical and amusing pen gets the point across quite effectively. We think this essay is nicely written and smooth for Jane and Joe on Main Street America -- the Six-Pack couple, who like everyone else -- don't want to know. Let's all go to Dairy Queen! How to Follow the Money to a Tapeworm... What does this essay on the FED have to do with the Reality of Realty? Everything! Since 1913, the FED has operated on a system of Booms and Busts. It wants total banking consolidation in the United States as identified by Larry Becraft, Jr. in his Memorandum of Law: The Money Issue essay we previously cited in the 4R's. Although there certainly are linkages to the House of Rothschild in the UK, with respect to the ownership of the FED, our friend G. Edward Griffin, indicates that this more or less remains inconsequential, saying -- "let's just get rid of the thing." Ed Griffin is the Author of The Creature from Jekyll Island -- a second look at the federal reserve, which we have also previously cited in the 4R's. Currently, the FED, and its cohorts [Mom Alice in Kansas City says 'partners in crime'] in money pumping to Wall Street, the GSEs [Fannie Mae and all her cousins, who by the way operate as a second central bank], are using inflating real estate prices to smoke and mirror everyone on the economy, while the money gets sucked to Wall Street. The banking cartel runs almost all of the Biggie appraisal management [I call 'em mis-management] companies, and there is a connection from the banking cartel to professional realty valuation organizations, which is a conflict of interest. Now you tell me, Dear Reader, all this doesn't impact the Reality of Realty! The banking cartel has the ability to inflate the Holy Hell out of real estate in every micro market in the Nation! The whole FED based lender pipe food chain is well imbedded in the bowels of a Nation just like an evil tapeworm. You know what a tapeworm does, don't you, Dear Reader? Hey, I have a degree in Zoology, and most of you Wizards -- don't! Gimme that Ole Time Religion, C'mon a My House -- I give you candy [Fannie Mae?] or We've Only Just Begun? Real estate with a building improvement has always been, currently is, and will forever be a depreciating physical asset. I repeat: Real estate with a building improvement has always been, currently is, and will forever be a depreciating physical asset. Mozart did that when he wrote something he liked -- he repeated it, sometimes laboriously! When a depreciating asset keeps rising in price continually, year after year, doesn't that strike you, Dear Reader, as most peculiar. We covered this in our Blitzkrieg #5 Essay -- Ponzi and Electricity. Jane and Joe, in our view, understand the concept of realty appreciation in price only insofar as they are able to keep extracting more equity from their physical realty every time they refinance or increase the home-equity line of credit and spend, spend, spend. Jane and Joe see this as typically American. What they fail to realize is that there is an ever increasing debt burden they are placing under the realty's foundation, and the concept that those paper Federal Reserve Notes they mistakenly call Dollars, run off the printing press, are also debt backed at an increasingly alarming rate. Debt backed money and debt backed real estate don't mix in our view under these economics. Intrinsically, if a realty micro market appears to be appreciating over time at a 4% annual rate, that on the surface appears to be good. However if a property has a 60 year economic life, it is depreciating at a rate of 1.67% per year. Simple math produces a real appreciation rate for that micro market of 5.67%, Sports Fans! I call real property appreciation rates, the depreciation rate for our money system, but few in the realty valuation gig really get it -- since they have been also dumbed down by their designations and education spoon fed to them at the hands of the banking cartel through various professional trade organizations. Real Estate is Nothing but a Ponzi Shell Game Built on a Debt Pyramid? ----- Nahhhhhhhh! Real property can go up in market price because of recognizable market forces such as a new factory [not hardly likely in this market environment, is it?], or enhanced location, as well as other market forces which act positively on the perceptions of buyers and sellers in the marketplace. However, when local micro and macro market conditions are not impacting the increases in market prices, we can only conclude that the inflation of the printing press [more legal tender fiat paper funnie monie FRNs are chasing fewer goods and services = inflation] is the main modus operandi of the FED and its Bastard [bloated, false, spurious] GSE step-children. Not only are these rascals sucking Jane and Joe into a deep debt burden hole, but they are stealing the value of the so-called money in their savings, checking, as well as other investment or retirement accounts, even if Jane and Joe were so lucky as to have avoided nasty stocks like the QQQs, Enron, or JDS Uniphase. Frosting the Glazed Donuts? Overall, we find Author Krautkramer's essay on the FED to be excellent recommended reading for Jane and Joe Six-Pack. The Author astutely indicates to the reader as well, that the 16th Amendment to the Constitution was almost a hand in glove piece of legislation [smoke and mirror] to accompany the FED creation in 1913 [how else is one going to pay the interest on debt backed money?]. Don't know the 16th Amendment? Ehhhhhhhh.... the Federal Income Tax. I also have a deliciously dirty little secret for you, Dear Reader... this rascal was never really ratified by the proper number [3/4th's] of states to be street legal. As a parting shot, see Bill Benson's The Law that Never Was.... Does this, perhaps, frost your Krispy Kreme's? Grin! Ole Bear, Editor © 2004 Realty Reality |
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