I asked many of my co-workers and friends what they know about the Federal Reserve. Some never heard of it and others just “stay out of politics”.  Congress either understands the Federal Reserve about as well as me and the people I work with or they understand it very well and use it for their own purposes.  My guess is there is a little of both.

Woodrow Wilson signed the Federal Reserve Act into law in 1913 with hopes of  keeping the American economy stable.  The great depression happened after the stock market crashed in 1929 so apparently it didn’t work.  Conspiracy theories portray that It worked out nicely for the guys funding the Federal Reserve.

By the way did you know Woodrow Wilson’s second wife Edith was a descendant of Pocahontas and he was instrumental in women gaining the right to vote as well as creating the IRS and involving us in WWI.

It seems that Wilson’s purpose, which was passed by congress, was to establish a system of banking that would remain independent but overseen by congress to protect the American economy.   My smart friend Fred says… ‘ There is evidence that no one in government or banking has been properly taught recently. At least they don’t seem to be interested in financial stability as much as in how to flip securities and create new “products” to flim-flam investors, other banks and foreign governments. ”

Oversight of the Federal Reserve is quite obviously an important issue that we need to understand and pay attention to.  As Fred stated “Money is a debt of the government with no interest rate. When you have a hundred dollar bill it means the government owes you a hundred dollars. You can take it to any bank and exchange it for another or a combination of smaller  currency or coin equal to $100.  You used to be able to get gold or silver but that was eliminated in 1933. Can you imagine trying to keep track of a $5 gold fleck?”

So, we can’t run around with little gold flecks in our pockets or chickens or buckets of oil or items of value so money is printed.  A loan from the government covered by the value of the US treasury which is manipulated by the individuals at the Federal Reserve.  We vote for congressmen to keep an eye on the Fed, AKA oversight.

In 1895, the Federal Treasury was nearly out of gold. President Grover Cleveland arranged for J.P. Morgan to create a private syndicate on Wall Street to supply the U.S. Treasury with $65 million in gold. JP Morgan pretty much owned the US treasury, as a consequence Cleveland, a democrat, angered his democratic constituents, and lost the presidency to Republican William McKinley.  Mckinley established gold as the only standard for redeeming paper money with the Gold Standard Act in 1900.  He was assassinated in 1901.

Another panic in 1907 was a financial crisis that almost crippled the American economy, yet again. Major New York banks were on the verge of bankruptcy and there was no mechanism to rescue them until Morgan stepped in, yet again and personally took charge, resolving the crisis.

Morgan organized a team of bank and trust executives which redirected money between banks.  A delicate political issue arose regarding the brokerage firm of Moore and Schley, which was deeply involved in a speculative pool in the stock of the Tennessee Coal, Iron and Railroad Company. Moore and Schley had pledged over six million of the Tennessee Coal and Iron (TCI) stock for loans among the Wall Street banks. The banks had called the loans, and the firm could not pay.  If Moore and Schley should fail, a hundred more failures would follow and then all Wall Street might go to pieces.  Too big to fail was going on back in 1907. Morgan decided they had to save Moore and Schley.

Vowing to never let it happen again, and realizing that in a future crisis there was not likely to be another Morgan, banking and political leaders, led by Senator Nelson Aldrich devised a plan that became the Federal Reserve System in 1913. The crisis underscored the need for a powerful mechanism, and Morgan supported the move to create the Federal Reserve System.  Yay!! it’ll never happen again and we don’t have to pay attention.  Then you may ask “Why did the great depression happen if the Federal Reserve System was established to protect the American economy”?  Well, either something evil was going on or just plain stupidity (on our part) and greed.

President Lincoln didn’t like the idea of a Central Bank and stated…

“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. The banking powers are more despotic than a monarchy, more insolent than autocracy, more selfish than bureaucracy. They denounce as public enemies all who question their methods or throw light upon their crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe. Corporations have been enthroned, and an era of corruption in high places will follow. The money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed.”

Shortly after he said this, he was assassinated.

Banks store our money for us so we don’t have to walk around with our wad in our boots.  It isn’t sitting in a vault waiting for us to come and get it.  The bank has devised ways to turn our little wad into a bigger wad for themselves through speculation and manipulation of fractional reserves (watch the video at http://www.youtube.com/watch?v=iYZM58dulPE to understand it better). They also extend credit to us based on our wad and make money off the interest.

We all need to treat our credit cards like a 30 day note, you borrow to get things you want in the immediate sense rather than having to wait for your next paycheck.  If you pay it back before the 30 days is up, you don’t have to pay interest, you just pay back what you borrowed. So we can live happily ever after surrounded by the ones we love.  Isn’t that the ultimate goal? for our money to buy our happiness? Like a patient said to me once “you never see a hearse pulling a U-haul”.

I ran across a website that visually represented how much money BP lost due to the oil spill.   I was incredulous.  That much money exists?  It is a loss they plan to recoup.  How do you suppose they will make up the loss?

They have convinced us to drive bigger cars, drink our water from a bottle, use more plastic and carry on with war, any war.  Oil men love war.  War is what truly feeds Seymour.  You remember the insatiable plant from “Little Shop of Horrors”.  I liken the oil (and coal) industry to Seymour’s need to keep his plant alive.  In the beginning it was a nice fun little plant.  Harmless, at least relatively.  The plant like the oil industry has gotten so big it is devouring the planet through wars and plastic and large ships and cruise liners that carry us and our crap across oceans.

We are convinced that if we all pile on a giant boat together life will be more fun.  We are convinced that the stuff we have is not good enough.  It all needs to be replaced by better stuff.  Most of the stuff is plastic and plastic is made from oil and the plastic is brought to us on giant boats that require massive amounts of oil.  This insatiable need has been brought to you by the oil industry.

We can’t blame oil entirely.  Coal is what fuels this nations heat and air and lights.  The current grid was set up by the coal industry and subsidized by the US government.  It was harmless and useful in its beginnings.  What a blessing to have heat and air and light due to the fabulous grid work that traverses the nation.  Except, now it too is like Seymour’s plant.  Dividing and devouring and convincing us that nothing else will do.

So let me share the website that prompted this blog…

http://www.visualeconomics.com/what-bp-could-have-bought-with-all-the-money-they-lost/

I wrote to my smart friend Fred who gave me this reply…

So you see in the world of business BP’s loss isn’t so much. Don’t feel sorry for them. Don’t think how much good this money could have done because it pales in comparison to the money we waste on wars. Iraq I believe was $1,000 billion. That’s 112 times what BP wasted.

When you look at it this way — it isn’t oil and coal that feeds Seymour’s plant.  Economics feeds the plant.  How often does economic advantage take precedence over doing good?  Goodness faces doom when it gets in the way of the economy.

What truly amazed me is that 3.4 billion dollars would buy an ice cream sandwich for everyone in the world and yahoo is worth 20 billion.  Wouldn’t it be cool if yahoo bought an ice cream sandwich for everyone in the world?  There is probably a soy version for the lactose intolerant.

The Top 10 Things You May Not Know About the Wall Street Reform and Consumer Protection Act

Here are 10 aspects of the Wall Street Reform and Consumer Protection Act you may not know about — the online attention-deficit version.

1. Stronger protections for consumers against unfair credit card practices like rate hikes for existing credit card balances.  When my son had a traffic accident I didn’t work for a month to be at his bedside,  I had a credit card with a 9% rate that I never used, but kept for emergencies.  As soon as I used it the rate went to 18%.  When I called to complain, they dropped the rate to 16% and told me that was “standard practice“.   I told them this was “standard bullshit” paid it off and canceled the card forever.
2. Mortgage brokers will be prohibited from making higher commissions by selling mortgages they know consumers can’t afford. But –  We love the stuff we can’t afford. We need to go back to –> we can only have what we can afford.  Then the cost of living will drop and the pay scales will rise and we’ll need less stuff.  Like “Happy Days”.
3. Free annual credit scores so people can stay on top of their finances. [Clarification: free credit scores are available if you receive worse terms on a loan because of something on your credit report, or if you are rejected. You think this will make folks stay on top of their finances?
   
4. No more taxpayer-funded bailouts. yay!! If a company can’t make it, it will have to liquidate.  If what they sell is junk, they need to go down. Like the company building junky jets for the air force — they went down.
5. Greater input by company shareholders over how much a CEO gets paid.  Companies’ compensation boards are now required to be truly independent.  you mean they weren’t in charge of a CEO’s pay or compensation?
6. Brokers who offer investment advice will have to act in the best interests of their customers, not their own financial interests.  Oh, yeah, like some federal law is gonna make that happen.
7. Financial firms won’t be allowed to grow so large that if one fails, it will affect the entire financial system.   Isn’t that why we don’t allow monopolies? When did that change?
8. There will be one agency whose sole job is to make sure that consumers get the protections they deserve and to set clear rules to hold banks, mortgage companies, payday lenders, and credit card lenders accountable.  It will be interesting to see how this works out. I’m sure you anti-government types are focusing on this one.
9. Businesses can’t be charged extra fees for debit card “swipe fees” that exceed the cost of processing transactions.
10. You can learn plenty more here at WhiteHouse,gov or at financialstability.gov
11. Updated: To tack on #11, here’s a new animated video we’ve released to further explain Wall Street Reform.

RE:  My son’s accident–> I didn’t borrow from mother, father, sister, brother or friend, I had money sitting around doing nothing waiting for the inevitable shit that happens in life.  Something governments, companies and individuals all need to do.

The Swiss bankers and the Roman Catholic Church were complicit in the Nazi regime. These were not terrible people. They were normal people. They closed their eyes to evil or justified it, for the sake of peace or gain or national loyalty. I sometimes wonder (and fear) whether I would have done the same if I had been in that society at that time. It is so easy not to see, not to hear, not to understand, when one’s own peace or prosperity is involved. There have been times, after all, when I have allowed blatantly racist statements to pass unchallenged in the name of good manners, or of just keeping the peace. For so little of one’s soul, or at least a little piece of it, is on the auction block.”

The Reverend Kathleen Damewood Korb

I have been distressed lately by the volatile nature of conversations, especially conversations involving our president.  Some of us, did not vote for him or voted for him reluctantly, some wholeheartedly, and some voted for him due to his apparent superiority over his opponent.  I find myself defending him and a few friendships have been strained.  I cherish those friendships and find that coming here is often the needed release.   So what is the right thing to do?  Stop talking, stop listening, stop reading, stop caring?

Cap and Trade is one issue that causes heated exchanges to surface.  If manufacturing moves to another country that values economy more so than the planet, then what we have achieved is a worsening of the global warming process.  Those giant ships that bring our stuff across the oceans are spewing more toxins than the plants that made the stuff in the first place.  What is the solution?  Some believe we need to drive a stake into our evil president’s heart.  I believe we need to stop subsidizing fossil fuels and instead subsidize the retooling of manufacturing plants so they’ll stay here and get green and give tax incentives for doing so. Even if you don’t believe that climate change is caused by human intervention, the climate is changing and we need to keep this little planet as clean and pristine as possible.

Certain persons in the media have made Mephistophelean bargains for power and fame using fear and greed as their catalyst.  A few of them have marketed themselves as chosen.  Chosen to teach us what God wants us to do.  People blindly believe their utterances and it is becoming impossible to sit idly by or “close my eyes for the sake of peace”.

My mother raised us to never talk politics or religion at the dinner table.  I have adhered to that rule and have enjoyed many a peaceful dinner with friends who I know don’t agree with my politics or my religion.  Once the plates are cleared and the wine and chocolates or coffee and cheesecake starts a few fists have pounded the table. There are times when it needs to be talked about though.  Not informing ourselves, not talking at all is useful for the “owners”, as George Carlin referred to the media and the companies that pay them to tell us what they want us to know.

The economy and what is best for the economy isn’t always the best solution, still, it is the solution “the owners” love.  They create or enhance or close their eyes to hate in order to improve their own economy.

It is always important to challenge hate; challenge it’s source and find it’s solution. When you don’t like the way things are, there is always a chance for a different outcome.  Our conversations need to look at all sides and possible outcomes. Are we better off doing nothing vs doing things differently?

When fists are pounding or all capital letters are being typed, chances are a point is being made.  Hopefully the point is to liberate us from hate.

Mr. Levin said, referring to testimony given by Mr. Blankfein in January. “They were self-interested promoters of risky and complicated financial schemes that were a major part of the 2008 crisis. They bundled toxic and dubious mortgages into complex financial instruments, got the credit-rating agencies to label them as AAA safe securities, sold them to investors, magnifying and spreading risk throughout the financial system, and all too often betting against the financial instruments that they sold, and profiting at the expense of their clients.” 

They bet against what they sold!?  That is legal?! Is this what we are trying to stop in this financial regulations bill?  If America is a giant casino and we are the players, does Goldman Sachs (et al) own the casino?  Are you investor types out there OK with that?

The more I read about this the more confused I get.  I think, well they must not have understood the huge impact this betting would cause us out here in the trenches.  Then I think, no, they are amazingly intelligent people, they knew, they just didn’t care; and they never will.  We can’t ever expect the casino to do what is right for us, they will always do what makes them money.   We can’t even shake our pointy fingers at them because we have admired them this whole time for their wealth and power while they plotted our demise. Half of us still admire them,  and those are the ones arranging a filibuster right now in the senate.

So we need to pay attention to what our senators are paying attention to.

http://www.senate.gov/general/contact_information/senators_cfm.cfmP

What angers me is the minds that sit around figuring out ways to make money off of our misfortunes.  There are boardrooms full of people trying to figure out how to pocket some cash.  I call them clipboard carriers.  Administrators are rewarded for making money rather than  for providing amazing results for the health of a community.  I worked with an occupational therapist who was so inspiring to me and others as we watched her bring smiles to the depressed and life to those ready to give up.  She was let go because she didn’t generate enough income for the little rural hospital.  Hospitals are not factories.  They don’t have assembly lines.  Hospitals are full of real people with real problems and sometimes fixing those problems just doesn’t make anyone any money.

Dr. William D. wrote a blog that made me think,  then again maybe they are factories?…

“. . . the life of the pig has moved out of view; when’s the last time you saw a pig in person? Meat comes from the grocery store, where it is cut and packaged to look as little like parts of animals as possible. The disappearance of animals from our lives has opened a space in which there’s no reality check on the sentiment or the brutality. . .”

The same disconnect has occurred in healthcare for the heart. The emotional distance thrust between the hospital-employed primary care physician, the procedure-driven cardiologist, the crammed-into-a-niche electrophysiologist (heart rhythm specialist) or cardiothoracic surgeon whose principal concerns are procedures—with an eye always towards litigation risk—mimics factory farms that now litter the landscape of the Midwest. The hospitals and doctors who deliver the process see us less as human beings and more as the next profit opportunity.

The “factory hospital” has allowed the subjugation of humans into the service of procedural volume, all in the name of fattening revenues. Never mind that people are not (usually) killed outright but subjected to a succession of life-disrupting procedures over many years. But whether livestock in a factory farm or humans in a factory hospital, the net result to the people controlling the process is identical: increased profits.

The system doesn’t grow to meet market demand, but to grow profits. The myth that allows this growth is perpetuated by the participants who stand to gain from that growth.

See hospitals for what they are: businesses. Despite most hospitals retaining “Saint” in their name, there is no longer anything saintly or charitable about these commercial operations. They are every bit as profit-seeking as GE, Enron, or Mobil.

http://www.wellsphere.com/heart-health-article/factory-hospitals/472314

I think most of us really do care about people and their individual health.  We just need to care less about profits.

So when you are shopping for a toy for your favorite tot and you notice that it was made in China.  Remember this picture of plastic factory waste going in to what was once a beautiful river.

Next time you buy an Iphone, computer or various other electronics and some jewelry remember this titanium plant.

Without rules a nations people are allowed to suffer.  Without activism the suffering continues.  Our country allows activism and yet some refer to those activists as socialists.  I don’t get it.

Don’t blame this horridness on the people of China.  Just like here there are good people trying to do good things to advocate for the health and happiness of all people.  Not just those who can afford good health and happiness.  Please see the entire article and all the photos at

http://www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/

Tim Gummer says:

If it wasn’t already obvious, then it is surely clear here that our Stuff is made in a Mordor of this very earth, by a people in slavery. In a globalized world, our complicity in their deaths and suffering is no less than those who stood by in the towns of Auschwitz and Buchenwald. These workers’ horrors may be marginally less, but unlike the deathcamps’ neighbours, we cannot pretend we have not seen.

…we have all of the NEGATIVE effects of “socialized” health care without actually having equal health care for all. Arguments against socialized health care, include the people not wanting the few to pay for the masses. But that is exactly what’s happening here.

I work 2 jobs, pay my taxes, barely make enough to keep a roof over my head and food on the plates of my family, do not get such luxuries. An ER visit typically runs me $2,000+, which I must pay or else what’s left of credit will disappear. I cannot afford health care, and with the economy today, my employers do not offer me any benefits as they won’t let me work full-time. This HAS to change.

http://www.theweeklyupdates.com/our-life/orange-county-medical-service-flawed/

This is an example of a hardworking American taxpayer who is having to go without, due to the current healthcare system.  Not to repeat myself, but, it isn’t a system.  It is a big pile of crap and when you stir up crap you realize how much it stinks.

Now — Let me share with you this exchange I had recently with a young man I know.  He is usually witty and makes funky videos so I sent him Barack Obama’s video challenge.  His response and that of his friend throws off the hope for change.  These boys are in college, so, don’t think they are uneducated knobs.

Also, Whenever you try to talk reasonably about healthcare reform it is easy to find the opposition–>they are the ones  pounding their fists on the table or resorting to foulness.

WHE

Yes please expand the government so I can lose even more freedom.

September 27 at 3:17am

NHA

hmm. while those celebrity judges are busy smelling their own asses and picking their favorite sob story maybe i should make an advertisement full of the real people who want universal health care… not the ones hand picked by the people selling this bullshit to us.

Me

If you are attending a university or college then you are involved in government funded education. What freedom is healthcare reform going to take from you?

September 28 at 12:16pm

WHE

Great idea, let’s make a video of a bunch of people who are really lazy and don’t want to have to work hard for their healthcare.  My parents and I were taxed to support this school, if taxes would have been lowered I’m sure I could have afforded to go to a better university.

September 29 at 3:18pm

Me

not everyone who gets sick is lazy.

September 29 at 3:58pm

NHA

Im simply saying that personally I’ve noticed that people in favor of universal health care are largely behind it for personal gain when they could be acting in the best interest of our country. I don’t think that all sick people are lazy. But i do believe that many illnesses (not all) are a result of the behavior one engages in. smoking causes lung cancer. Failure to wear a seat belt can cause an injury. Drinking to excess and walking down stairs may lead to broken bones. These are reasons why some people need insurance in the first place and I don’t think that our society as a whole should be forced to pay for the mistakes of a few. It doesn’t seem progressive to me. More like a ball and chain.

September 29 at 9:18pm

Me

I know a good man, self employed, no insurance, who drinks plenty of water and lives a good life providing for his family he had a massive stroke. I know a boy, who worked hard. who lived a good life and got knocked off his motorcycle on a freeway on the way home from work –>brain injury. I know a waitress, single, works three jobs, got a kidney stone requiring surgery –>debilitated her finances. All of us can have anything happen at anytime. It is the brothers keeper thing — not personal gain

September 29 at 9:33pm

WHE

Everyone get’s sick, but I don’t care if they die or not, (What?!) have you ever tried anal sex? (What?! again) Because people who smoke, eat fast foods, have buttsecks, and live otherwise dangerous lifestyles are going to benefit from this plan more than me. All I know is that socialized medicine bankrupts every country or state that enacts it.  (our country is so financially stable with our current healthcare eh?)

September 29 at 11:14pm

Me

Ok I’ll go away now

September 30 at 7:57am

NHA

It’s good to discuss these things when we’re all on the same page.

September 30 at 7:54pm

Just an example of the oppositions mind.  I wasn’t sure how to contest any further. By the way, How do you get in to college without knowing how to spell buttsex?  And, what page are they on?

http://www.blackcommentator.com/cartoons.html

Here is a good page to go to

http://factsaboutreform.org/myth.html

I guess I feel the same way about health care.  I think everyone should have access to public health care.  I think that when I was a poor single mom raising my two gorgeous and healthy children that I should have been rewarded with some health care (at least).  I thank God that I never broke a bone or had a kidney stone.  My kids and I would have suffered as many do when a health tragedy strikes.  If I had not been able to work and go to school because of an illness or accident, I would have lost my jobs and been kicked out of the nursing program. I was really, really lucky and that is all.

This is America.  Many claim we are the most powerful and wealthy country in the world and yet we have “indigents”.  We set up free clinics for them because they don’t have insurance and their children are hungry.  Other countries ie: England, Japan, France, Switzerland, Germany; have systems where there are no health care indigents.  Everyone qualifies for health care.  Why are we so opposed to this? — the cost?

OK, so, lets define “indigent” deficient in what is requisite.  Lacking food, clothing, and other necessities of life because of poverty; needy; poor; impoverished.  (I looked it up on dictionary.reference.com)

They are really, really unlucky.  I wasn’t exactly indigent, but, damn close and if any kind of physical anomaly had befallen me, believe me, I’d have fit the description.  My nursing program required us to volunteer.  I chose the Salvation Army. We provided health care for the homeless with a retired cardiac surgeon.  We did good things for a lot of people and sometimes they were grateful and sometimes they were just wanting the free socks we gave them.  Some of these people were alcoholics or drug abusers and some were just really, really unlucky.  One fellow had a broken ankle.  We gave him a prescription to get an x-ray and have an orthopedic surgeon look at it at the county hospital ER.  He had no way of getting to the hospital to get this done.  I’m not sure the hospital would have done it after he got there.  Free clinics can only do so much.

So, then we have to define “requisite” essential, necessity, requirement.

What are the essential requirements of an American life? Food, shelter, clothing, good health and an education.  Some might add a car that runs vs. a sweet ride, a cell phone vs. an I-phone, a PC vs. a Mac — well, you see what I’m getting at.  Some of us think that access to health care is as essential as access to an education.  Some do not.

I’m doing OK now, I am able to afford insurance, and my children are insured.  I have a lovely home, a nice car, my children are adults and still gorgeous and healthy, and I have an income that provides for essential needs.

(Aren’t they gorgeous kids?  The best thing I’ve ever done in this life)

I whine like everyone else that the more I make the more they take. Who are they?  What are they doing with my money after they take it?  Isn’t that what we all piss and moan about?  What is this going to cost me?  I do not like it that my money was  spent killing Iraqi people, some don’t like the idea of their money being spent on a revised American health care system.  I believe that health care and the health of this planet is more important that killing people in other countries.  Our current President seems to agree.   I feel a little better about where my hard earned money is going.