jabmyeyes.com

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.

“Rich people give poor people jobs. Plain and simple. With out rich people, poor people won’t have jobs. See all the liberals want the government to take away all the rich peoples money, but don’t ever give any of there own.” This is a quote from an apparent Republican to his liberal facebook friend.

When did this happen?  The rich paying for the poor?  Define poor.  Do you think the richest Indian was the one with the fanciest horse?  Or was the bravest Indian the one with the fanciest horse?

I was extremely impressed with a Missouri gentleman that built our kayak from strips of wood.  He explained the procedure and that his boats would withstand some of the wildest rivers in Missouri and Arkansas.  It took about 4 months for it to be completed and now it is a gorgeous lightweight kayak that is durable, usable art .  I suppose some of the glues, and paints may have had Chinese roots or came from a factory owned by a wealthy corporation, but, for the most part our beloved vessel was handmade by an American. He had a home, a car, a workshop, diabetes and a smoking habit.   He made his own way in his own shop living a free American life that many of us might envy.

Insurance would have been impossible for him to obtain if it hadn’t been for medicare.  He qualified for socialized medicine because he lived long enough too.  Prior to that I think he plucked chickens in a factory or something like that so he would be insured. Why is our society set up like this? Because the guys that own the chicken factories don’t want us to be free.  If we are free and don’t need the insurance they provide, we may leave and start an organic chicken farm that would compete with them.  We would be poor, but, we would be free and insured.

“Another word for freedom is nothing left to lose”  I so miss the days when everything I owned fit in my car and I traveled about, working at random restaurants, taking ballet classes and teaching ballet classes.  I never broke a body part or had a kidney stone or appendicitis.  I never thought about healthcare or health insurance.  If I had needed healthcare back in those days I would have been financially screwed.  I guess I was poor, but, I didn’t feel poor, I felt  free.

Life happened.  Husband, kids, and a job that provided health insurance for us all.  There went my freedom.  I don’t think it should have to be that way.  I think we should be able to make things, grow things, be brave and ride a fine horse.  I think we should have the choice to be free and at the same time be responsible.  I don’t think providing healthcare for all is the rich paying for the poor.  I think it is all of us pitching in for all of us.

Please don’t let Dupont, ExxonMobile, and Monsanto buy our next President.

Ruth Marcus of the Washington Post wrote…

In opening the floodgates for corporate money in election campaigns, the Supreme Court did not simply engage in a brazen power grab. It did so in an opinion stunning in its intellectual dishonesty.

It was unnecessary for the court to go so far when there were several less-radical grounds available. It was audacious to seize the opportunity to overrule precedents when the parties had not pressed this issue and the lower courts had not considered it. It was the height of activism to usurp the judgments of Congress and state legislatures about how best to prevent corruption of the political process.

Nina Totenberg of NPR wrote…

“It will undoubtedly help Republican candidates since corporations have generally supported Republican candidates more.”

Freedom of Speech

No one would have followed Martin Luther King if he had said “I have a nightmare”, as mentioned by energy secretary Ed Miliband.

We need to unite in being good to this earth.  It has been so good to all of us.  I am  hopeful that the decision makers representing the world in Copenhagen are uniting in the dream — and not denying the nightmare.

Side note and a bit of irony –> more than 1200 limos are being called in from all over Europe to meet the delegates, officials and presidential demands of the Copenhagen climate summit.  Too cold to ride bikes I guess.  The “economic growth” advocates ie: Republicans for continued pollution, will be represented by US Senator, Jim Inhofe

We all know the nightmare –> So many pictures of people riding bikes in China through polluted air with face masks.  Stories of asthmatic children in the Bronx breathing diesel fumes.  Photos of decapitated mountains in West Virginia and the subsequent coal muck escaping in to small towns.  Growth was so big and so fast that sewage spilled in to drinking water in Florida.  Many fists pound many tables when you suggest that things need to change.

Polluters love muddling the facts, and making fun of the nightmarish scenarios.  Some scientists  actually feed the machine that is profiting currently.  The collaborative machine of industry, shipping, air flights, hospitals, manufacturers, and on and on are horrified by the idea of changing energy production and usage. We have evolved to need stuff, rather than just water, food, shelter and coffee.

No such thing as a sustainable status quo in the stock market.   We just need to make change less horrifying and point out the advantages to health and stocks.

So lets describe the dream… Andrew Gilligan wrote an article for the telegraph.co.uk…” Copenhagen is a city filled entirely with bicycles, stuffed with retrofitted, energy-efficient old buildings, and seems to embody the civilized pleasures of low-carbon living without any of the puritanism”.

Costa Rica produces 99% of its energy from renewable sources, reversed deforestation and is aiming to become a carbon-neutral country by 2021 by combining its ministries of energy and environment, and abolishing its army.  Ok abolishing armies will probably never happen world wide, there will always be bad guys to fight.  We can dream though.  Other small island nations such as the Dominican Republic and Jamaica are also fairing well in levels of health and a very low footprint.

I read about the folks who are against healthcare reform they seem to belong to the same pile of people who are against cleaning up the environment.  The common denominator seems to be they don’t like the costs of these humanitarian interventions.  Talk about jab my eyes out and WTF!  Is it that they figure some people and places are just expendable?  They are poor and uneducated and someone has to clean up our shit and make our chemicals.  Look at these pictures from China.  This would seem to exemplify the cost of not caring.

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.